Report on

Implementation of Motivational Theories On Grameenphone

Submitted to
Hazera Akter
Lecturer
Department of International Business
University of Dhaka

Submitted by
Group Name: Sparkling IB
Batch: 9th
Sec: A
Department of International Business
University of Dhaka
Date of Submission: 11th April,2017.

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 Table of Contents
Topic Name page no
1. Executive Summery……………………………………………………………03

2. Objectives………………………………………………………………03

3. Company Background of Grameenphone ………………………………………….04-05

4. Theoritical background of
Motivation……………………………………………………………………….06-09

5. Implementation of Motivational

theories on Grameenphone…………………………………………10-13

6. Findings……………………………………………………………………….13

7. Recommendations…………………………………………………………14

8. Conclusion……………………………………………..14

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Executive Summery:

Grameenphone is a part of one of the most advanced industries in Bangladesh Currently.

Grameenphone authority plays a vital role to keep the employees motivated. they use different
motivational program of Grameenphone is the best among all other companies in this sector
and it is also higher than most other companies in Bangladesh. We see that Grameenphone
ensures highest customer satisfaction in the telecommunication sector. It is only possible for
their employees. The employees give their comparing to other companies in the sector because
they are well motivated.

Objectives of the Term Paper:

Two types of objectives are given below:

Broad objective:

 To present an overview and brief introduction to GP

 To learn about the motivation approaches to employees used by GP
 To learn about dealing with employees

Special objective:

 To gain a relationship between theoretical and practical learning real life

situation of GP
 To identify the motivational factors of GP
 To identify the different sectors those have direct involvement with employee
motivation
 To give some suggestions for the maintenance of employee motivation.

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Native name গ্রামীণফ ান

Type Public company

Industry Mobile telecommunication services

Founded 1997 in Dhaka, Bangladesh

Founder Iqbal Quadir & Dr.Muhammad Yunus

Headquarters GPHOUSE,
Basundhara, Baridhara, Dhaka, Bangladesh

Area served Bangladesh

Key people Petter-B Furberg (CEO)

Services Mobil telephony, Mobile Internet

 ৳ 102.7 billion (2014)

Revenue
 ৳ 96.6 billion (2013)

Number of 3,638 (Q3 2016)

employees
Parent Telenor mobile communications AS

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Company Background of Grameenphone

Grameenphone widely abbreviated as GP, is the leading telecommunications service provider

in Bangladesh With more than 54.5 million subscribers and 46.3% subscriber market share (as of
August 2016), Grameenphone is the largest mobile phone operator in the country. It is a joint
venture between Telenor and Grameen telecom corporation, a non-profit sister concern of
the microfinance organization and community development bank Grameen Telenor, the largest
telecommunications company in Norways owns a 55.8% share of Grameenphone, Grameen
Telecom owns 34.2% and the remaining 10% is publicly held
Grameenphone was the first company to introduce GSM Technology in Bangladesh, and built
the first cellular network to cover 99% of the country.

History

The idea of providing universal mobile phone access throughout Bangladesh, including its rural
areas, motivated Iqbal Quadir to take action. He was inspired by the Grameenbank microcredit
model and envisioned a business model where a cell phone can serve as a source of income.
After leaving his job as an investment banker in the United States, Quadir met and successfully
raised money from New York-based investor and philanthropist Joshua Mailman. He then
returned to Bangladesh and worked for three years to gain support from organisations such as
Grameen Bank and the Norwegian telephone company, Telenor. The result was a consortium
with Telenor and Grameen Bank to establish the telecommunications company Grameenphone.
Grameenphone received a license for cellular phone operation in Bangladesh from the Ministry
of Posts and Telecommunications on 28 November 1996. The company started operations on 26
March 1997, Independence day in Bangladesh.
Grameenphone originally offered a mobile-to-mobile connectivity (widely known as GP-GP
connection), which created a lot of enthusiasm among the users. It became the first operator to
reach the million subscriber milestone as well as ten million subscriber milestone in Bangladesh.

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OB Issue:

The term motivation is derived from the Latin word movere, meaning "to move." Motivation can
be broadly defined as the forces acting on or within a person that cause the arousal, direction,
and persistence of goal-directed, voluntary effort. Motivation theory is thus concerned with the
processes that explain why and how human behavior is activated.
The broad rubric of motivation and motivation theory is one of the most frequently studied and
written-about topics in the organizational sciences, and is considered one of the most important
areas of study in the field of organizational behavior. Despite the magnitude of the effort that has
been devoted to the study of motivation, there is no single theory of motivation that is
universally accepted. The lack of a unified theory of motivation reflects both the complexity of
the construct and the diverse backgrounds and aims of those who study it. To delineate these
crucial points, it is illuminating to consider the development of motivation and motivation theory
as the objects of scientific inquiry.
HISTORICAL DEVELOPMENT
Early explanations of motivation focused on instincts. Psychologists writing in the late 19th and
early twentieth centuries suggested that human beings were basically programmed to behave in
certain ways, depending upon the behavioral cues to which they were exposed. Sigmund Freud,
for example, argued that the most powerful determinants of individual behavior were those of
which the individual was not consciously aware.
According to Motivation and Leadership at Work (Steers, Porter, and Bigley, 1996), in the early
twentieth century researchers began to examine other possible explanations for differences in
individual motivation. Some researchers focused on internal drives as an explanation for
motivated behavior. Others studied the effect of learning and how individuals base current
behavior on the consequences of past behavior. Still others examined the influence of
individuals' cognitive processes, such as the beliefs they have about future events. Over time,
these major theoretical streams of research in motivation were classified into two major schools:
the content theories of motivation and the process theories of motivation.

Motivation is one of the important parts of managerial functions. A manager becomes

unsuccessful if he fails to motivate his subordinates. There is a close relationship between
motivation and performance. The most importance of motivation are:

Lead to profitable operation:

Motivation is an important tool that leads the organization in profitable operations. Motivated
workers perform their duties with full responsibility. The development of self responsibility
among the workers contributes for the best utilization of available resources like materials,
money, machines and others.

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High level of productivity:

Motivation contributes to develop working efficiency of employees. When employees are

actually motivated they improve their working efficiency. The development of working
efficiency among workers leads to maximize production and productivity. Management can
expand its business activities in large areas for organizational profitability and growth.

Best remedy for resistance to change: The change in the management system and
organizational structure is essential to adjust an organization and its business activities according
to changing environment. In some situation workers, specially, their unions may create resistance
to change. They think about their job security and stability. The motivated workers have
knowledge about the outcome of changes. They even better appreciate the management view
points to the introduction of chances in the organization.

Effective use of human resources: Manpower is the main active factor of production and is
responsible for the best utilization of organizational resources. Motivation is the main instrument
which creates the willingness among workers to do their work in the best possible way. In other
words, motivated employees make the best utilization of their skills, knowledge, capabilities etc.
in the existing environment.

Satisfaction of employees: The satisfaction of employees is essential for organizational

effectiveness. Motivation helps satisfy employees and develop morality among them. Employees
with high morale become dedicated to the organization. They also perform their jobs in the best
manner. Generally, employees are motivated through facilities both financial and non financial.
Financial facilities are essential to fulfill basic and other physiological needs. In a similar
manner, promotion on the basis of efficiency and experience is essential to fulfill social needs.

Minimize disputes and strikes: Motivation is an important tool, which helps to maintain
coordination and develop a feeling of harmony among workers and management. It minimizes
misunderstanding and disputes between the management and workers. The development of
transparency about the internal matters stimulates the workers to perform their work efficiently.
When workers get knowledge about their responsibility and return, they perform their work
efficiently.

Basis of coordination: Motivation is the basis of coordination among all members of the
organization. Motivated employees develop a better understanding among themselves. They
appreciate their mutual problems and resolve differences through mutual consent. The main
reason for the differences in approach among the workers is the lack of coordination. However,
motivation helps to maintain coordination among the workers. The maintenance of coordination
helps to develop the attitude of team spirit and group effort for common goals.

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Stability of workforce: It is known that a motivated and stable workforce is potential of the
organization. Motivation directly or indirectly facilitates the stability of the workforce.
Generally, frustrated and dissatisfied employees may think of leaving the organization for better
opportunity. Motivated employees do no want to leave the organization and want to work for the
organization with the best possible way. Therefore, the management needs to provide facilities to
workers on the basis of their efficiency and experience.

Minimizes supervision cost: Motivated employees perform their work themselves. In other
words, the concept of sell responsibility is developed among them and they perform work
smoothly. For such employees, only guidance and timely suggestion is sufficient. Therefore,
regular and close supervision is not required to such employees. Motivation indirectly
contributes to minimizing supervision cost.

Achievement of organization goals: Every organization is established to achieve definite

objectives. Similarly, the main responsibility of the management is to focus on organizational
objectives. Motivated workers put their effort toward the attainment of organization objectives.
The best utilization of human effort contributes for the proper utilization of other resources. This
is helpful to minimize cost of output or service and maximize profitability.

Theories of Motivation
Businesses with unmotivated employees often face low productivity and high turnover rates.
Multiple theories help explain how workers are motivated and provide suggestions for how to
increase motivation in the workplace. Understanding which theory best fits your employees may
help improve your small business by increasing employee retention rates and improving worker
productivity.

Theory X and Theory Y

In the 1960s, Douglas McGregor proposed two theories related to employee motivation and
management. His theories divided employees into two categories. Theory X employees avoid
work and dislike responsibility. In order to motivate them, employers need to enforce rules and
implement punishments. Theory Y employees enjoy putting forth effort at work when they have
control in the workplace. Employers must develop opportunities for employees to take on
responsibility and show creativity as a way of motivating Theory Y employees. A third theory,
Theory Z, was developed by Dr. William Ouchi. It encourages group work and social interaction
to motivate employees in the workplace.

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Hierarchy of Needs

Maslow's Hierarchy of Needs contains five levels that often shape motivation styles in an
organization. To motivate employees, an organization must move up the pyramid of needs to
ensure all of an employee's needs are met. The bottom of the pyramid contains physiological
needs such as food, sleep and shelter. Safety makes up the second level and belonging the third.
The top two levels of the pyramid include esteem and self-actualization. Successful
organizations focus on the top two levels of the pyramid by providing employees with the
necessary recognition and developing opportunities for employees to feel they are doing valuable
work and reaching their potential with the company.

Hawthorne Effect

Through a series of experiments in the late 1920s, Elton Mayo developed the Hawthorne Effect.
This effect theorizes that employees are more productive when they know their work is being
measured and studied. In addition to this conclusion, Mayo realized that employees were more
productive when provided with feedback related to the studies and allowed to provide input into
the work process. Workers need recognition for a job well done and reassurance that their
opinion matters in the workplace to be motivated to perform.

Equity Theory

John Stacey Adams' Equity Theory argues that employees are motivated when they perceive
their treatment in the workplace to be fair and unmotivated when treatment is perceived to be
unfair. In an organization, this involves providing employees with recognition for the work they
are doing and giving all employees the chance to advance or earn bonuses and other awards.
Managers who play favorites or single out employees for recognition may face a largely
unmotivated group of employees.

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Implication of Motivational Theories in Grameenphone:

In Grameenphone to motivate employees by using motivation theory models such as Maslow’s

hierarchy of needs , Douglas McGregor’s theory, Herzberg’s Hygiene and Motivational Factors
theory, Z theory.

Now we will analyze how Maslow’s hierarchy of needs are applied in Grameenphone.

Maslow’s Theory Application

The motivation level of employees in Grameenphone is increased by the various facilities that
reflect Maslow’s needs hierarchy.

Physiological needs

Grameephone seems to be strongly influenced by this part of the theory. The minimum salary for
the lowest managerial position in Grameenphone is 28,000 taka and in the call center starting
salary is 10,000 taka. Maslow’s physiological needs means the biological needs human requires
surviving such food, clean water. So it is clear that a Grameenphone Employee has better
probability to satisfy the biological needs as the monthly salary is higher than most of the other
companies in Bangladesh. This higher salary policy has proved milestone for Grameenphone. As
it offers an handsome salary at the very starting point of career Grameenphone has been able to
recruit the most highly skilled employees. An high salaried job is much more attractive to the
freshly graduated skilled applicants. This salary philosophy (putting more money to the base
salary) has also helped them keeping the skilled productive workforce at their company. Their
motivation also increases by the paid training period which Grameenphone offers. Most of the
companies in Bangladesh keep an unpaid training period on the other hand Grameenphone’s paid
training program are more lucrative to the trainees and it motivates them to response to the
training opportunity eagerly.

Safety needs

Safety Need is emphasized in Grameenphone ltd. They have included so much to make
employees more protected, secure and stable in their workplace. Grameenphone ltd is building a
pension fund for it employees. It also invests in a provident fund. 10% of the salary is paid on a

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monthly basis into the fund. Employees are also entitled and covered by health and medical
insurance. This also applies to family member. Grameenphone also provides monthly education
grants for children under age of 21 to all employees. The grant is fixed for each child. This type
of financial security has made Grameenphoneemployees more comfortable at their jobs. As our
results suggest that the medical insurance is very useful to every employee. They are mainly
using it for their sick parents of elderly persons in the family. The workplace has also taken into
account to give the employees best safety at the place. Sophisticated software and computerized
security system to keep the whole place from the safety of fire, theft, robbery and any kind of
unwanted event.

Social needs

Safety need indicates love, affection, and a sense of belongingness in one's relationships with
other persons. Examples of these needs are work groups, teamwork, and company good
relationship with co-workers. "In our observation we have found that Grameenphone requires
each employee to attend in the “discussion time” of the team work to strengthen interpersonal
relationships. Also a new employee need to attend the orientation and after that he/she stays
under supervision of two or three experienced colleague and a senior supervisor during the
training period to alleviate the left out feeling of a new comer.

Esteem needs

As the level of fulfillment a person feels in the workplace such as respect, prestige, recognition,
need for self-esteem, personal sense of competence and mastery in opinion, humans are
egocentric, and everyone likes to be praised . This is part of this need fulfillment. Results states
at Grameenphone employees like to be appreciated and recognized for job .This motivates them
to continue working hard for the company. Performance bonuses are given on the basis of
performance in a given year. This happens after the yearly appraisal. The reviewer (usually the
immediate boss) notes down the performance of the employee on a given set of characteristics
and sends it to the MD. The MD then takes the decision on the performance bonus. However, all
decisions regarding performance bonuses by the MD needs to be approved by the Board of
Governors. Most lucrative to mention about rewarding provided by the recognition for
“Employee of the Month” is made each month that drives the employee motivation level to
greater extent.

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Level of self-actualization

The need to grow and use one's abilities to the fullest and most creative extent.Grameenphone
offer challenging and meaningful work assignments which enable innovation, creativity, and
progress according to long-term goals. This need we mayo all self-actualization. According to
our observation in Grameenphone each year around 2% employee reaches this phase where they
feel their potential is truly paid off (employees who get promoted at the top level management).

Now we will analyze how Douglas McGregor’s hierarchy is applied in Grameenphone.

Douglas McGregor’s theory application

Theory Y:

Grameenphone uses the theory Y in the employee motivation process. It gives them opportunity
to work independently. It believes that the employees have the creativity, ingenuity, potential and
self-direction to treat the customers and they take responsibility for their own interest. Sharing
ideas and views with employees and taking an effective and efficient decision with the
participation of employee is a common phenomenon here.

Theory X:

When an emergency situation creates in the organization, grameenphone tends to take or apply
theory X for the better interest of the organization. High official decision, strategically formulas
and to protect organization from some uncared employees, grameenphone sometimes apply
theory X.

Grameenphone Theory Implication (Herzberg’s Hygiene and Motivational Factors)

As a leading telecommunication company grameenphone seems to be more careful about their

standards of service and customer satisfaction. Dissatisfactory factors are generally not found but
sometime policies and personal life factors create some dissatisfactory condition in the
organization.

Motivating factors often are easily found in the grameenphone as a leading company in this
sector. Employees feels motivated with the statue, recognition such as the company always uses
“we” in its recognition stage. Continuous growth and shareholders eagerness to this company
motivates employee to have a chance to work with such a company.

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Now we will analyze how Z theory is applied in Grameenphone.

Z theory’s application

Grameenphone uses this theory when they face the problem of change their internal and external
changing program in their organization. The management of Grameenphone promises to change
the way managers and employees alike think about their jobs, their Companies, and
their working lives.

Findings:
After our study we have got some findings. These are

 GP is the leading telecommunication service provider in Bangladesh.

 Grameenphone covers a lot of works for the motivation of their employees.
 Grameenphone uses the consultive and supportive leadership program.
 Motivational program for the employees of Grameenphone is better than many other
companies of Bangladesh and it is at the top among all the telecom companies.

To finish this term paper, we find that Grameenphone covers a lot of works for
the motivation of their employees. As Grameenphone is the largest
telecommunication company in our country so their employee motivation is more
better than the other telecommunication company. Especially Grameenphone uses
the consultative and supportive leadership program for motivating their employees in
the workplace so that they can easily improve the productivity. After the entire
employee motivation of Grameenphone Limited is more appreciated than others.

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Recommendation:
The recommendations for Grameenphone Ltd. should follows which are given bellow: As a
competitive market, the company should become more innovative and competitive for their own
benefit. As Grameenphone is the largest organization so they should improve their customer
satisfaction and employee motivation system. For motivating employee they should give the
employees some incentive and promotional packages. They should ensure the safety working
conditions for the motivating employees for their own betterment. They should give the profit
sharing opportunities for the employees that employees will be motivated to work more and
more. They should give the emphasis on the empowerment of employees.

Conclusion:
There is no simple answer to the question of how to motivate people. Can money motivate? Yes,
but money alone is not enough, though it does help. We have discussed some of the pertinent
theories bearing on human motivation and this is balanced by some of the practical factors which
can lead to excellence. Human resource remains the focal point and leadership the critical
component, and motivation has to be 'tailored' to each individual. The next section deals with an
important mode of motivation, namely financial aspects of rewarding employees.

References:

 http://documentslide.com/documents/grameenphonemotivationtrm-paper-
mgt211.html
 http://www.academia.edu/13753740/Motivational_Program_of_Grameenphone_L
imited
 https://www.scribd.com/document/88855206/Gp-Motivation-of-Employee

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