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Human Resource Audit in BMTC

A PROJECT REPORT ON

HUMAN RESOURSE AUDIT IN BMTC

Submitted in partial fulfillment of the requirements of


The M.B.A Degree Course of Bangalore University

Submitted By

PATTAR SAVITA SHASHIKANT


(REGD.NO:04XQCM 6063)
Under the Guidance and Supervision
Of
PROF. SUMITHRA SREENATH

M.P.BIRLA INSTITUTE OF MANAGEMENT


Associate Bharatiya Vidya Bhavan
# 43, Race Course Road, Bangalore-560001
SEPTEMBER 2005
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

DECLARATION

I hereby declare that this report titled HUMAN RESOURSE AUDIT IN BMTC is a
record of independent work carried out by me, towards the partial fulfillment of
requirements for MBA course of Bangalore University at M.P.Birla Institute of
Management. This has not been submitted in part or full towards any other
degree.

PLACE: BANGALORE

DATE: PATTAR SAVITA SHASHIKANT

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Human Resource Audit in BMTC

PRINCIPAL’S CERTIFICATE

This to certify that this report titled “ HUMAN RESOURSE AUDIT IN BMTC ”
has been prepared by MISS. PATTAR SAVITA SHASHIKANT bearing the
registration no.04 XQCM 6063 under the guidance and supervision of Prof.
SUMITHRA SREENATH MPBIM, Bangalore.

Place: Bangalore Principal

Date: (Dr.N.S.Malavalli)

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Human Resource Audit in BMTC

GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “HUMAN RESOURSE AUDIT IN
BMTC” done by PATTAR SAVITA SHASHIKANT bearing Registration No.04
XQCM 6063 is a bonafide work done carried under my guidance during the
academic year 2005-06 in a partial fulfillment of the requirement for the award of
MBA degree by Bangalore University. To the best of my knowledge this report
has not formed the basis for the award of any other degree.

Place: Bangalore Prof.SUMITHRA SREENATH

Date :

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Human Resource Audit in BMTC

ACKNOWLEDGEMENT

I am thankful to Dr.N.S.Malavalli, Principal, M.P.Birla institute of management,


Bangalore, who has given his valuable support during my project.

I am extremely thankful to Prof. Sumithra Sreenath, M.P.Birla institute of


Management, Bangalore, who has guided me to do this project by giving
valuable suggestions and advice.

I equally thank all the Employees and Executives of BMTC have extended
their suggestions and helped me learn a lot about the organization.

Finally, I express my sincere gratitude to all my friends and well wishers who
helped me to do this project.

PATTAR SAVITA SHASHIKANT

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Human Resource Audit in BMTC
INDEX

Sl.No Particulars Page.No

1 Executive Summary

2 Introduction to HR Audit

3 Industry Profile

4 Company Profile

5 Departments in BMTC

6 Research Methodology

7 Study of HR Department

8 Analysis and Interpretation

9 Audit Analysis

10 Findings

11 Suggestion

12 Conclusion

13 Bibliography

14 Appendix

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EXECUTIVE SUMMARY

BMTC has its origin in a private company called Bangalore Metro Transport limited
founded in 1940 catering to the entire city with just 98 buses .Today the BMTC has been
giving transport service to the people with 28 minor bus stations and 4035 buses
operating 3875 schedules, serving about 32 lakhs passenger every day. Each day it has a
turnover of Rs1,73,00,000. Now BMTC has been an ideal public transport model to the
entire nation.

The topic HR audit was selected to understand the functioning of HRD systems and
procedures in order to evaluate the performance of HR department. The audit of
employee evaluation system is done in detail. HR Audit is done with the following
objective
• To study and analyze the HR department and its functions in BMTC
• To Audit the HR department in order to evaluate the HR practices.
• To Audit the Employee Evaluation System in detail.

A HR Audit cover the activities of the department in BMTC and cover beyond .because
people’s problems are not confined to HR department alone .Thus the audit has a broader
scope. It evaluates the HR functions, the use its procedures by higher authorities and the
impact of these on the employees in BMTC.
In HR Audit we may adopt any of the five approaches for the purpose of evaluation.
Those are
• Comparative approach
• Outside authority approach
• Statistical approach
• Compliance approach

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Human Resource Audit in BMTC
• MBO(Management By Objective) approach

In BMTC HR Audit Statistical approach is being used, in order to evaluate the


performance of the HR department. Through questionnaire data is being collected and
analyzed statistically to evaluate the various practices of HR department.

The statistical tool used for HR audit is Simple weighted average method. Based on this
tool HR Audit ratings are calculated and conclusion is being drawn.

After HR audit the study has the following findings Recruitment procedure and selection
criteria in the organization is perfect and needs no further improvement. Job classification
and grading in the organization is adequate and needs to improve in this area.
Remuneration, employment benefits and terms and conditions of employment are
adequate and needs to improve.

Lowest cadre in the organization is not paid much attention, they are taken on
contract basis and their contract is renewed after every 5 years Remuneration given to
them is also low. Working environment and facilities has to be improved. Work pressure
on drivers and conductors is high which needs to be reduced. Buses given to them should
be in good condition.

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INTRODUCTION TO HR AUDIT

It is common business practice for companies to perform an audit of their financial


records and accounting procedures. An audit may be legally required for some
businesses as well as some retirement plans. Auditors are checking for the accuracy of
transactions, proper reporting of assets and adherence to accounting standards. The
auditor makes recommendations for corrective action and future direction. This type of
audit is looked upon as a necessary part of doing business.

Employees have a significant impact on the bottom line, so an audit of the HR function
would be favorable. Audits can be limited in scope focusing on specific areas that may
need attention such as hiring practices, compensation and/or benefits, or they may be
more extensive looking at the HR function as a whole.

An audit is a means by which an organization can measure where it currently


stands and determine what it has to accomplish to improve its human resources
function. It involves systematically reviewing all aspects of human resources, usually
in a checklist fashion, ensuring that government regulations and company policies
are being adhered to. The key to an audit is to remember it is a learning or
discovery tool, not a test. There will always be room for improvement in every
organization.

The other purpose of conducting a human resource audit is to support the overall
business plan of the organization. The process has three parts:

• To identify and prioritize management issues relating to human resources;

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• To identify gaps between the current practices and policies with that of the
business objective; and

• To identify any legal difference and potential exposure.

The Core Reasons for HR-Audit

1) To insure the effective utilization of an organization’s human resources.

2) To review compliance with a myriad of administrative regulations.

3) To instill a sense of confidence in management and the human resources


function that it is well managed and prepared to meet potential challenges.

4) To maintain or enhance the organization’s and the department’s reputation in


the community.

5) To perform a "due diligence" review for shareholders or potential


investors/owners.

Full HR-Audit Consists Of:

1) Legal compliance

2) Compensation/Salary Administration

3) Employment/Recruiting

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4) Orientation

5) Terminations

6) Training and Development

7) Employee Relations

8)Communications

9) Files/Record Maintenance/Technology

10) Policies and procedures (including employee handbook)

The Human Resource audits should be done every twelve to eighteen months and should
coincide with the organizations business planning cycle. While some will say that the
audit should be done annually, but since it is such a large task pushing it to every
eighteen months is fine but definitely should not go beyond two years. The other option is
to establish an audit cycle to break the task into manageable sized pieces.

When planning an audit of your Human Resource function, here are a few things to
consider:

Timing: When would be the best time to conduct an HR audit is dependent upon a
number of considerations such as the audit cycles of other functions. It may be difficult
to have two audits going on at the same time.

What is the normal cycle for implementing changes? If benefits change at one time
during the year and there is a series of open enrollment meetings, that may also be the
best time to announce any changes that come out of the HR audit. So the audit should be

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conducted far enough in advance of the open enrollment period to allow for development
of new HR initiatives.

Scope: What areas if not all of the Human Resource Function should be reviewed? Does
one particular area need special attention? The business plan may also identify areas for
review based upon future products, sales, marketing initiatives or expansion.

The Audit Team: When selecting the audit team, consider individuals from different
disciplines within the organization and not solely the human resources staff. This will
provide a fresh perspective for looking at the HR function.

The team coordinator may be an internal individual or an external consultant with a


background in HR. The advantages of having an external person involved, is that they
have the time to devote to this project as it is their sole job while an internal person may
still have the demands of their own position on them. As independents they do not have
cultural issues to contend with and have outside experiences upon which to form
comparisons.

Follow-up: Taking action on the audit team’s recommendation is critical to the success
and creditability of the audit. As important as selecting the audit team is the selection of
the individual or group of individuals who will be charged with the responsibility of
carrying out the recommendations and implementing the changes. This individual or
individuals needs to have the position and authority to carryout the changes and
recommendations. The reporting relationship needs to be directly to the CEO and/or the
board of directors.
When done correctly auditing all or portions of the human resource function should
strengthen HR’s position and keep it aligned with the business plan of the organization.

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Audit Procedure:
HR management audit allows to rate the extent to which an organization has basic HR
activities in place and how well they are being performed. In deciding upon the rating,
consider also how other managers and employees would rate the activities. The total
score provides the guides for actions that will improve HR activities in the organization.
The main audit scales are as follows
VERY GOOD (Complete, current, and done well) 3 points
ADEQUATE (needs only some updating) 2 points
WEAK (needs major improvements/changes) 1 point
BASICALLY NONEXISTENT 0 points

The categories considered in HR Audit are:

1. Legal Compliance
• Equal improvement opportunity requirements
• Immigration reform
• Health and safety
• Wage and hour laws
• Employment-at-will statements
• Privacy protection
• ERISA reporting/compliance
• Family/medical leave

2. Obtaining Human Resources


• Current job descriptions and specifications
• HR supply-and-demand estimates (for 3 years)
• Recruiting process and procedures
• Job-related selection interviews
• Physical exam procedures

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3. Maintaining Human Resources


• Formal wage/salary system
• Current benefits programs/options
• Employee recognition programs
• Employee handbook/personnel policy manual
• Absenteeism and turnover control
• Grievances resolution process
• HR record-keeping/information

4. Developing Human Resources


• New employee orientation program
• Job skill training programs
• Employee development programs
• Job-related performance appraisal
• Appraisal feedback training of managers

HR Audit Scorings are as follows:


65-75 HR activities are complete, effective, and probably meeting most legal
Compliance requirements.

55-65 HR activities are being performed adequately, but they are not as
Complete or effective as they should be. Also, it is likely that some
Potential legal risk exists.

40-55 Major HR problem exist, and significant attention needs to be devoted


to adding and changing the HR activities in the organization.

Below 40 Serious potential legal liabilities exist, and it is likely that significant
HR problems are not being addressed

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SERVICE INDUSTRY PROFILE

Transportation:
Transportation is internationalization of production and markets, advance in information
technology, and trends towards out sourcing are revolutionizing this highly competitive
industry today. In the future, the prosperity and survival of transport organization
depends mainly on global alliances, integrated logistics services, precision deliveries and
ever-improving cost performance efficiencies. Beyond advances to meet this general
industry evolution, strategic approach to moving more sustainable logistics and transport.

Transport Industry:
Transport has constant returns –to-scale, production technology, their activity levels are
determined by the total demand for their transport units. Transport industry can be
determined as a function of its infrastructure demand.

Advantages of Public:
The renewal of and re-investment in inner city housing , helpful in reducing journey to
work trips and aiding maximum use of public transport as well as improving social
inclusion.
The re-development of urban areas in advances of virgin land on the city and town out
skirt, further helping to minimize traffic growth.
Vast improvements in the standard of design architecture and layout of higher
density developments , it can no longer be raised high and can help create vibrant
communities. The re-generation of cities to make them safer more attractive so helping to
reduce the drift from town to country.

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Modes of Transport:
There are two modes of transport. They are-
• Public transport mode
• Private transport mode
The different transport modes are aggregated into public and private transport mode.
The consumer do not obtain direct utility from transport ,while transport is only the
cost to the procedures each consumer demands a certain number of passenger unit by
public transport or by private transport.
Each producer demands a certain number of freight unit by public transport and by
private transport.

Transport mode consists of industry and underlying infrastructure with capacity to


provide transport to the public and private markets.

Types of transport industry:


• Air transport
• Water transport
• Road transport

Some Private transport companies in India:


• ASHOK LAYLAND
• VOLVO
• VIJAYAND ROAD LINES
• TATA
• HMT
• OPEL
• MAHINDRA etc..

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Some public transport companies in India:


• AIR-INDIA
• INDIAN AIR LINES
• RAILWAY
• KSRTC
• BMTC

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COMPANY PROFILE

Mission:

“To provide
Efficient, Economic, Safe, Reliable and Punctual services to the commuters of City and
Sub-urban areas of Bangalore”
- from the Preamble of the Act framed by the
Government of Karnataka for the formation of BMTC

BMTC provide the most affordable and dependable transport service to the people in and
around Bangalore, the capital of Karnataka State, renowned as the Garden City and
Silicon Valley of India. BMTC is an undertaking of the Government of Karnataka,
dedicated to the commoner's transport facility. Their motive is therefore service than
profit. Yet, since their inception, they are able to make profits by making significant
improvement in our work culture.

Today, they are the ONLY PROFIT MAKING PUBLIC SECTOR URBAN
TRANSPORT CORPORATION IN THE COUNTRY.
The returns are used again in their operations as they always strive to improve further the
quality of their service not only in providing comfort to the traveling public but also in
other vital aspects: Containing pollution, easing traffic congestion, saving fuel,
introducing all latest technologies in their operations to save precious time and money as
it will ultimately benefit the people since it is a public undertaking.

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Profile:
Bangalore Metropolitan Corporation, the fourth largest and one and only profit making
urban transport corporation in India, has its origin as a private company called Bangalore
Transport Company Limited in 1940 catering to the entire city with just 98 buses. Then
the government of Mysore took over the City Transport Corporation from the private
company and run the buses up to 10 miles of radius in the city in 1956 calling it
Bangalore Transport Services (BTS).

BMTC came into being and started functioning as an independent corporation with the
effect from 15th August 1977 as per the government order no. HTD 127 TRA 96 dated ih
Aug 1997. BMTC provide most affordable and dependable transports supports service to
the people in and around the Bangalore, the Captial of Karnataka state renowned as
garden city and Silicon Valley of India. The motive of BMTC is service than the profit

Consequent upon the formulation of BMTC the organization was structured under two
tier system namely depots and the corporate office with a view to have close liaison and
better control besides reducing the available intermediating post without sacrificing the
output or efficiency.

Reasons for Starting:

BMTC is the most cost effective mode of transport. Its fare is the lowest corporate to
other transport facilities. BMTC buses occupy least space on the roads when the numbers
of road users are taken in to account. One bus easily carries 60 persons on an average
unlike two wheelers and four wheelers. This helps reducing traffic congestion and
increasing road safety and road life.

BMTC saves the most precious fuel and there by saves the most valuable foreign
exchange. Use of more number of two wheelers and four wheelers on the roads means

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consumption of more fuel. Using BMTC more for travel saving fuel and foreign
exchange.

BMTC reduces air pollution as they are less in number compared to the number of twp
wheelers and four wheelers. Using BMTC more for travel means reducing air pollution
considerably.

On Aug 15th 1997 BMTC is incorporated as a separate entity has been bifurcate from its
parent body of KSRTC.

Reasons for Bifurcation:


In 1981, the Government of Karnataka had started thinking on the lines of bifurcating
KSRTC. This was to ensure better management and operations that would improve the
quality of service. On bifurcation, each corporation would be equipped with powers to
function as an independent entity making its own decisions according to its specific
needs. The government proceeded on the following lines:

1981: The Government constitutes study group with Mr. J.C. Lynn
as its Chairman.
1988: Expert Committee formed under the then Transport Secretary
Mr. S. DoraiRaju.
1988-89: Cabinet Sub Committee set up.
1992: Expert Technical Committee formed under Mr. P. Kodandaramaiah,IPS,
as Chairman
1994: Legislature Committee formed under Mr. P.G.R. Sindhia, as Chairman

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Bifurcating BTS from KSRTC was felt with more urgency:

• The City was extending its boundaries rapidly with new residential localities
coming up day in and day out.
• The population of the City was increasing rapidly.
• Consumer awareness was maturing fast, with expectations more on convenient
and comfortable transport.

Bifurcation brought the desired results in a short span. For instance:

• As BTS under KSRTC, it had not concentrated on improving infrastructural


facility to fulfill the needs of the traveling public in the same pace.
• On becoming a separate corporation as BMTC, it had added 13 depots raising the
total to 26 depots.

Due to closing of Depot-1 at Shanthi nagar to build bus station, the depots strength
is 25

Growth and Development of the Corporation:


BMTC has its origin in a private company called Bangalore Transport Company
Limited founded in 1940 catering to the entire city with just 98 buses. Then the
government of Mysore took over the city transport from the private company by an act
and run the buses up to 10 miles in the city in 1956 calling it Bangalore Transport Service
(BTS).

1950= The Chief Minister of the Karnataka B.D.Jatti made the Road Transport
Corporation Act mandatory and started an independent corporation called "Mysore State
Transport Corporation".

On 1 st Aug 1961 the Mysore State Road Transport Corporation is formed by a special

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Act with BTS as one of its division. The corporation was started with the main motto of
rendering service to the customers. It was started with 1518 vehicles, with 37 depots, 6
divisions, and 6200 workers\ employees, 2 regional workshops at Bangalore and Hubli
and one central office in Bangalore.

In 15th Aug 1997 KSRTC was divided and a new corporation for BMTC was carved out
of KSRTC. In November 1997 another new Road Transport Corporation to cater the
traffic needs of North- Western part of Kamataka W(;lS curved out of KSRTC. Recently
one more corporation North East Kamataka Road Transport corporation was formed with
its corporate office at Gulbarga.

Totally, starting from 1997 KSRTC has been split into 4 corporation namely Bangalore
Metropolitan Transport Corporation (BMTC), Kamataka State Transport Corporation
(KSRTC), North East Karnataka Road Corporation(NEKSRTC), and North West
Kamataka Corporation (NWKSRTC).

Recently another corporation under the banner of NEKSRTC was also been framed to
cover the north- eastern belt of the state comprising of the following district Bellary,
Raichur, Gulbarga, Bidar, Koppa!.

Presently KSRTC covers a Southern belt of Kamataka namely Chitradurga, Tumkur,


Mandya, Chamarajnagar, Kodagu, Hassan, Dakshin Kannada, Chikkamagalore, Udupi,
Shimoga and Davangere.

BMTC, which is now locked upon as a transport joint is confirming its operations to
Bangalore alone, in other words BMTC offers transport facilities covering Bangalore
District and its outskirts alone.

Though all these corporations have to manage their activities out of their own revenue.

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The policy making rests in the hands of KSRTC. Further since all these corporations have
to operate inherently within the framework of the rules and regulation continued in the
Road Transport Corporation Act.

At Present:
Every day, BMTC

ƒ Operate 3875 schedules

ƒ Deploy a fleet of 4035 buses

ƒ Make 58,000 trips

ƒ Performe 8.75 Lakhs Service Kilometres

ƒ Carry 32.00 Lakhs Passengers

ƒ Earn around Rs. 173.00 lakhs and

ƒ Pay Rs. 9.52 lakh to the Government towards Motor Vehicle tax

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BMTC discharge their social obligations by:

ƒ Connecting all villages around the City through its regular service with buses
indicating destination in red board.

ƒ Plying City services to the core areas to ease congestion with buses indicating
destination in black board.

ƒ Running limited stop buses to save time of the commuters

ƒ Providing comfort oriented fast moving 'Pushpak' buses

ƒ Chartering services to various industries, schools and colleges

ƒ Offering subsidized travel to the deserving sections of the society

ƒ Issuing passes to various segments of the society

ƒ Providing Eco-friendly ‘Parisara Vahini’ buses.

ƒ Running ‘Vestibule’ buses to carry more passengers.

ƒ Plying ‘Mini’ buses to provide transport to remote sub urban areas

ƒ Upgrading Transport services by introducing 3 ‘ Volvo’ buses in the city

ƒ Providing City sight seeing ‘Curitiba’ buses.

Only passes

Every month, about 2, 20,000 public passes are issued

Everyday, about 1, 46,000 are issued

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DEPARTMENTS IN BMTC

1. MECHANICAL ENGINEERING DEPARTMENT

Chief Mechanical Engineer

Work Manager

Mechanical Engineer

Divisional Mechanical Engineer

Assistant Mechanical Engineer

Assistant Work Superintendent

Charge man

Head Artisan

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Artisan

Assistant Artisan

Helper A

Helper B

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2. CIVIL ENGINEERING DEPARTMENT

Chief Civil Engineer

Executive Engineer

Assistant Executive civil Engineer

Assistant Engineer

Junior Engineer Civil special grade class (III)

Junior Engineer Civil Class (III)

Draughtsman

Assistant Draughts man

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3. ELECTRONIC DATA PROCESSING DEPARTMENT

Chief System manager

System manager

System analyst

Senior Programmer

Programmer

Programmed Administrator

Computer Operator

Senior Data Entry operator

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4. MEDICAL DEPARTMENT

Chief Medial Officer

Senior Medical Officer

Senior Medical Officer Junior

Staff Nurse

Pharmacist

X-Ray Technician

Junior Laboratory technician

Attender /Dresser

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5. HUMAN RESOURCE DEVELOPMENT DEPARTMENT

Chief Manger

Principal Manager

Training Manger

Assistant Training Manger

Instructor

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6. DEPARTMENT OF PRINTING

Chief Controller

Deputy controller

Assistant controller

Charge Man

Head Artisan Printing

Artisan

Assistant Artisan

Helper

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7. LAW DEPARTMENT

Chief Law Officer

Deputy Chief Law officer

Deputy Law officer

Assistant Chief Law officer

8. LABOUR & WELFARE DEPARTMENT

Chief Labor & Welfare Officer

Deputy Labor & welfare officer

Labor welfare officer

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9. ACCOUNT DEPARTMENT

Chief account officer cum financial adviser

Deputy account officer cum financial adviser

Account Officer

Assistant Account Officer

Superintendent (Account)

Supervisor (Account)

Assistant Accountant

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10. STATISTICAL DEPARTMENT

Chief Planning & statistical Officer

Chief Statistician

Statistical Officer

Assistant Statistical Officer

Superintendent (Statistical)

Supervisor (Statistical)

Statistical Assistant

11. SECURITY & VIGILANCE DEPARTMENT

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Director (Security & vigilance)

Chief Security & vigilance Officer

Deputy Security cum vigilance Officer

Security cum vigilance Officer

Divisional Security inspector

Assistant security Inspector

Watch & ward inspector

Security Havaldar

Security Head Guard

Security Guard

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12. STORES AND PURCHASE DEPARTMENT

Controller of Stores and Purchases

Deputy Controller of Stores and Purchases

Stores Officer

Assistant Stores Officer

Stores Superintendent

Store Keeper

Assistant Store Keeper

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RESEARCH METHODOLOGY

Statement of the problem:


HR is a major input for an organization to achieve its goals and objectives; therefore HR
functions and practices has to be reviewed in order to improve its performance.
Human Resource Audit is a tool for evaluating the HRD activities. The audit may include
one division or an entire company.
In my project the study encompasses of overall HRD activities particularly- Recruitment,
Selection, Labor welfare system, Training in the organization.

Field of Study:
Field of study is confined to HR Department, its functions and practices pertaining to the
organization. The study is not at all related to financial or other operational details of
BMTC

Objectives of the study /Research objectives:


• To study and analyze the HR department and its functions
in BMTC
• To Audit the HR department in order to evaluate the HR practices.
• To Audit the Employee Evaluation System in detail

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Data Sources / Source of Information:


Operating functions of HR management was collected from the HR managers of HR
department. Other than that required information was collected the primary and
secondary sources of data, which are as follows

Primary Data
It is the information relating to HR department of BMTC which is not available in the
reports and other books, has been collected by consulting the HRD officers and staff
members. Data is also collected by

• Questionnaires
• Informal Interview
• Observation

Secondary Data
It is the information relating to HR department of BMTC has been collected from the
published documents in the form of
• BMTC magazines
• Employee handouts
• BMTC website

Sample Size:

The sample size chosen for BMTC is 160

80-Adiministrative section from all the departments.


80- Operational section from all the departments

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Methodology of research and expected contribution from the study:

All the data that was collected during the study was evaluated for its importance towards
the study. Only the data that threw light on topic was taken for consideration.
Consideration and recommendation for improvement in the field of study. The views of
various authorities in the field of this study were presented in the report for due
consideration for their implementation.

Some expected contributions from the study are to help the organization to implement the
suggestions in this report so that it can contribute towards betterment or its service and
profits of the organization.

The research tool used for HR Audit is simple weighted average method. The Audit
questions has mainly four categories and points are being assigned to each .Those are

Category Points
Very good 3
Adequate 2
Weak 1
Basically Nonexistent 0

_____________________________________________________________________ 39
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Limitations of the study:


1. Time available for the research was limited.

2. This study is limited to one department of the organization only. ,

3. This study is limited in getting information from management and employees through
questionnaires and observation.

4. Unwillingness of the employees in answering the question.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

STUDY OF HR DEPARTMENT

Method of Recruitment at BMTC

Appointment to a post in the Corporation shall be made by any of the following methods,
namely

a) By promotion

b) By transfer of a person already in service of the Corporation from an equivalent cadre


or class of post.

c) By obtaining on a loan of service of a person already in service of the Central or State


Government or other State Transport Undertakings.

d) By direct recruitment

e) By contract on such terms and conditions as are, mutually agreed to. t) By recruitment
from among the In-service candidates.

g) By Deputation of a person already in service in the State or Central Government or


other State Transport Undertaking to fi1l up any direct recruitment vacancy or Class-
111 or Class-IV post.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Mode of Selection at BMTC:

1) The Selection Authority shall after interviewing the candidates, select candidates found
suitable for appointment and shall prepare a list of candidates so selected in the order of
merit.

2) The list of selected candidates so prepared shall be in keeping with the reservations
prescribed for Scheduled Castes, Scheduled Tribes and other Backward Classes as may
be decided by the Government from time to time.

3) The preparation of select list shall be in accordance with the mode of selection (cycle of
vacancies) prescribed by the Government from time to time.

4) The Selection Authority will prepare the select lists of candidates in the order of merit in
each classification of Backward Classes, Scheduled Castes and Scheduled Tribes as
prescribed by the Government from time to time. Provided that candidates belonging to
the above classes whose names figure in the list prepared in the category of general Merit
shall also figure in the merit list prepared as per the classification of Backward Classes,
scheduled Castes and Scheduled Tribes.

5) Appointment of this candidate shall be in the descending order of merit from out of the
lists specified in Sub Regulation 4 as per cycle of vacancies.

6) The List of selected candidates prepared by the Selection Authority shall be equal to the
No. Of existing vacancies plus vacancies that may arise over a period of one year from
the date of publication as may be assessed by the Selection Authority. The Corporation
may be Resolution in exceptional cases extend the validity of any select list for a period
not exceeding six months.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

• Provided that such un-operated portion of the list at the expiry of one year from
the date of publication of the list shall cease to be valid.
• Provided further that the Selection Authority may for reasons to be recorded in
writing quash the whole of the list un-operated portion of the list, as the case
may be, at any point of time.
• Provided further that the Corporation may be Resolution for reasons to be
recorded quash the whole of the list or un-operated portion of any select lists
prepared by various Selection Authorities as the case may be at any point of time.
Irrespective of the procedures prescribed above for direct recruitment of all categories of
Class - IV, Class - Ill, Class - II and above posts, the procedure followed in the State
Government regarding adding of weightage of marks / percentage of marks to the marks
secured by the Rural candidates

Training

1) The candidate who is selected by the Selection Authority and whose name is placed in the
select list of candidates is liable to be called upon to undergo such training on such terms
and conditions for such categories of post as may be prescribed by the Corporation before
his appointment on probation.

2) Any candidate who fails to report for the training prescribed in Sub. Regulation (1) or who
fails to SATISFACTORILY COMPLETE such Training will forefeet his claim for
appointment to the post for which he is placed on the select list. Provided that a.
candidate appointed from another post in the Corporation will be re-evited to the post
held by him prior to selection and training.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Staff Welfare

At BMTC they are aware where their strength lies. It is verily in the contentment of our
staff members, one and all. BMTC extends various kinds of facilities to its employees.
• An exclusive multi specialty hospital for the benefit of the employees and their
family & entered MOU with 30 hospitals.

• Deaddiction treatment for the crew members

• Housing

• Incentives on the basis of performance

• Education

On retirement, employees are given a warm send off recognizing their valuable service.

The monetary benefits due to the retired employees such as Gratuity, Provident Funds,
Encashment of Leave (admissible), and other benefits are settled immediately so that the
retired employees do not suffer for want of funds. Their wishes will be transferred to the
employees in-service as an inspiration.

Labour Welfare
• Crew Rest Rooms are provided at depots,
• Wage arrears, DA installments and difference of HRA, CCA arrears paid
regularly,
• Periodical grievance meeting conducted at depots,
• Deaddiction, medical camps, WAPPA programs organized,
• Transparency in recruitment and disciplinary cases.
• Cash award for meritorious students BMTC employee's children
• Rs.2500/- Educational advance of children of BMTC employees.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

• Initial down payment for procuring a site


• Medical advance for serious dieses like heart problem, cancer & others.
• For voluntary retirement scheme for medically incapacitated employees.
• Group accident insurance scheme
• Loan share for procuring vehicles and household articles.
• Free counseling on legal matters.
• Advance towards marriage of employees and their children.
• Free Coaching classes for employees children studying in SSLC & PUC
• Special awards & Gold metals for meritorious students of BMTC employees
• Providing telephone booth facility to dependents of deceased employees and also
medically incapacitated employees
• ECS Facility for dispursement of salary and other financial benefits.
• Exgratia towards funeral expenses of employees, by death on duty.
• Insurance scheme up to 3 Lakhs for death while on duty.

_____________________________________________________________________ 45
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

ANALYSIS AND INTERPRETATION

Well Structured HR unit

Category No of Respondents %
Yes 132 82.5
No 28 17.5
Total 160 100

NO, 17.50%

Yes, 82.50%

According to survey 82.5 % feel that their HR unit is well structured and about 17.5%
feel that it needs to be improved a lot in its structure and practices. Employees has to be
educated about the functions and practices of HR unit particularly lower cadre of BMTC.

_____________________________________________________________________ 46
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Monitoring employee function by HR unit

Category No of Respondents %
Yes 132 83
No 28 17

Total 160 100

NO, 17%

Yes, 83%

According to survey most employees feel that the HR unit of the BMTC
monitors employee functions properly. Some section like job grading and scheduling
needs to be emphasized

_____________________________________________________________________ 47
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Selection Process

Category No of Respondents %
Yes 108 67.5
No 52 32.5
Total 160 100

NO, 32.50%

Yes, 67.50%

About 67.5% of the employee feels that the selection process in BMTC is totally
unbiased and there is no need to care of the system.
About 32.5% of the employee feels that the selection procedure is biased.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Salary

Category No of Respondents %
Yes 124 77.5
No 36 22.5
Total 160 100

NO, 22.50%

Yes, 77.50%

About 77.5% of the employee are satisfied by their salary they are getting
from BMTC.
About 22.5% of the employee are not satisfied by their salary. They feel is should be
hiked.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Suggestion Encouragement

Category No of Respondents %
Yes 112 70
No 48 30
Total 160 100

NO, 30%

Yes, 70%

About 70% of the employee feel that their suggestion are encouraged in BMTC to
improve its operational system.

About 30% of the employee are feel that their suggestion are not encouraged in BMTC to
improve its operational system.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Suggestion Reward

Category No of Respondents %
Yes 120 75
No 40 25
Total 160 100

NO, 25%

Yes, 75%

About 75% of the employee feel that their suggestion are rewarded in BMTC to
improve its operational system.
About 25% of the employee are feel that their suggestion are not rewarded in BMTC to
improve its operational system.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Periodic Training

Category No of Respondents %
Yes 124 77.5
No 36 22.5
Total 160 100

NO, 22.50%

Yes, 77.50%

About 77.5% of the employees say that they are sent for periodic training ,who are
mostly from operational section and some are from administrative section.

About 22.5% of the employees say that they are sent for periodic training ,who are
mostly from administrative section clerical workers

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Monitoring of Training Activities

Category No of Respondents %
Yes 128 80
No 32 20
Total 160 100

NO, 20%

Yes, 80%

About 80% of the employees feel that HR unit monitors training activities satisfactorily.
It does not require any improvement.

About 20% of the employees feel that HR unit does not monitor training activities
satisfactorily and requires lot of improvement.

_____________________________________________________________________ 53
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Performance Appraisal System

Category No of Respondents %
Yes 120 75
No 40 25
Total 160 100

NO, 25%

Yes, 75%

About 75% of the employees feel that HRD unit has devised effective performance
appraisal system.

About 25% of the employees feel that HRD unit has not devised the performance
appraisal system properly.

_____________________________________________________________________ 54
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Handling of personal grievances

Category No of Respondents %
Yes 104 65
No 56 35

Total 160 100

100%

90%

65%
80%

70%

60%

35%
50%

40%

30%

20%

10%

0%
Yes NO

About 65% of the employees feel that HR unit attempts to the personal grievances of
individual employees and settles them.

About 35% of the employees feel that HR unit does not attempt to the personal
grievances of individual employees and settles them.

_____________________________________________________________________ 55
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Grievance Redressal Procedure

Category No of Respondents %
Yes 84 52.5
No 76 47.5
Total 160 100

52.50%
60%
47.50%

50%

40%

30%

20%

10%

0%
Yes NO

About 52.5% of the employees know that HR management has released the grievance
redressal procedure in the organization.

About 47.5% of the employees do not know that HR management has released the
grievance redressal procedure in the organization. Employees need to be educated about
the grievance redressal procedure in the organization.

_____________________________________________________________________ 56
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Awareness about Labour Welfare Officer

Category No of Respondents %
Yes 148 92.5
No 12 7.5
Total 160 100

100%
92.5%

90%

80%

70%

60%

50%

40%

30%

20%

10% 7.5%

0%
Yes NO

About 92.5% of the employees know that there is a labour welfare officer in the
organization.

About only 7.5% of the employees do not know that there is a labour welfare officer in
the organization who are mostly from the operational section and of the lowest cadre in
the organization.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Welfare Facilities and Benefits

Category No of Respondents %
Yes 144 90
No 16 10

Total 160 100

90%
100%

90%

80%

70%

60%

50%

40%

30%
10%
20%

10%

0%
Yes NO

About 90% of the employees feel that there are welfare facilities and benefits like
uniform, accident insurance and other facilities in the organization.

About only 10% of the employees do not feel that there are welfare facilities and benefits
like uniform, accident insurance and other facilities in the organization.

_____________________________________________________________________ 58
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Awareness about Safety Officer

Category No of Respondents %
Yes 112 70
No 48 30
Total 160 100

NO, 30%

Yes, 70%

About 70% of the employees are aware of that there is a qualified safety officer in the
organization.
About only 30% of the employees are not aware of that there is a qualified safety officer
in the organization.

_____________________________________________________________________ 59
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Training of First Aid Application

Category No of Respondents %
Yes 100 62.5
No 60 37.5
Total 160 100

NO, 37.50%

Yes, 62.50%

About 62.5% of the employees say that they are trained in first aid applications.

About only 37.5% of the employees say that they are not trained in first aid applications
who are mostly from administrative section.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Safety at Work place

Category No of Respondents %
Yes 136 85
No 24 15
Total 160 100

NO, 15%

Yes, 85%

About 85% of the employees feel that they are provided with adequate safety at work
place.

About only 15% of the employees feel that they are not provided with adequate safety at
work place.

_____________________________________________________________________ 61
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Organizing Farewell Parties to Retiring Employees

Category No of Respondents %
Yes 148 92.5
No 12 7.5
Total 160 100

100%
92.50%

90%

80%

70%

60%

50%

40%

30%

20%

10% 7.50%

0%
Yes NO

About 92.5% of the employees say that the HR unit organizes farewell parties to the
retiring employees in the organization.

About only 7.5% of the employees are not aware that, the HR unit organizes farewell
parties to the retiring employees in the organization.

_____________________________________________________________________ 62
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Issuing Of Service Certificates

Category No of Respondents %

Yes 132 82.5

No 28 17.5

Total 160 100

NO, 17.50%

Yes, 82.50%

About 82.5% of the employees are aware that service certificates are issued to the retiring
employees.

About only 17.5% of the employees are not aware that service certificates are issued to
the retiring employees.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

AUDIT ANALYSIS
Recruitment procedure and selection criteria in the organization

Category No of Respondents %

Very Good 100 62.5


Adequate 44 27.5
Weak 16 10
Basically Non- 0 0
Existent

70%

62.50%

60%

50%

40%

30% 27.50%

20%

10%
10%

0%
0%
Very Good Adequate Weak Basically Non existent

About 62.5% of the employees feel that recruitment and selection criteria
is perfect and needs no further improvement.
About 27.5% of the employee feel that it is adequate and it needs to improve in its
functioning
About only 10% of the employee feel that recruitment and selection system is weak and it
needs to be improved a lot

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Points Total Points


Respondents
Very Good 100 3 300
Adequate 44 2 88
Weak 16 1 16
Basically Non- 0 0 0
Existent
Total 160 6 404

From Simple Weighted Average:


404/6=67

It lies between 65-75 which indicate that HR activities are complete,


effective and meeting most legal compliances.

_____________________________________________________________________ 65
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Job classification and grading

Category No of Respondents %

Very Good 80 50
Adequate 64 40
Weak 16 10
Basically Non- 0 0
Existent

75%

65%

50.00%
55%

40.00%
45%

35%

25%

10.00%
15%

0.00%
5%

-5%
Very Good Adequate Weak Basically Non existent

About 50% of the employees are totally satisfied by the job classification
and grading system in BMTC.
About 40% of the employee feel that job classification and grading is adequate and it
need to improve.
Only about 10% of the employees feel that the system is totally weak and needs to
improve a lot.

_____________________________________________________________________ 66
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Respondents Points Total Points

Very Good 80 3 240


Adequate 64 2 128
Weak 16 1 16
Basically Non- 0 0 0
Existent
Total 160 6 388

From Simple Weighted Average:


388/6=64

It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist

_____________________________________________________________________ 67
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Remuneration, employment benefits and terms and conditions of employment

Category No of Respondents %

Very Good 76 47.5


Adequate 64 40
Weak 20 12.5
Basically Non- 0 0
Existent

50%
47.50%

45%

40%
40%

35%

30%

25%

20%

15%
12.50%

10%

5%

0%
0%
Very Good Adequate Weak Basically Non existent

About 47.5% of the employees feel that Remuneration, employment benefits and
terms and conditions of employment is perfect and needs no further improvement.
About 40% of the employee feel that it is adequate and it needs to improve in its
functioning
About only 12.5% of the employee feel that recruitment and selection system is weak and
it needs to be improved a lot

_____________________________________________________________________ 68
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Respondents Points Total Points

Very Good 76 3 228


Adequate 64 2 128
Weak 20 1 20
Basically Non- 0 0 0
existent
Total 160 6 376

From Simple Weighted Average:


376/6=62.6

It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist

_____________________________________________________________________ 69
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Working environment and facilities

Category No of Respondents %

Very Good 76 47.5


Adequate 64 40
Weak 16 10
Basically Non- 4 2.5
Existent

47.50%
50%

45% 40%

40%

35%

30%

25%

20%

15% 10%

10%
2.50%

5%

0%
Very Good Adequate Weak Basically Non existent

About 47.5% of the employees feel that working environment and facilities are
perfect and needs no further improvement.
About 40% of the employee feel that it is adequate and it needs to improve in its
functioning
About only 12.5% of the employee feel that working environment and facilities are weak
and it needs to be improved a lot

_____________________________________________________________________ 70
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Respondents Points Total Points

Very Good 76 3 228


Adequate 64 2 128
Weak 16 1 16
Basically Non- 4 0 0
existent
Total 160 6 372

From Simple Weighted Average:


372/6=62

It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Training and development

Category No of Respondents %

Very Good 76 47.5


Adequate 64 40
Weak 20 12.5
Basically Non- 0 0
Existent

Basically Non existent 0%

Weak 12.50%

Adequate 40%

Very Good 47.50%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

About 47.5% of the employees feel that training and development is perfect and
needs no further improvement.
About 40% of the employee feel that it is adequate and it needs to improve in its
functioning
About only 12.5% of the employee feel that working environment and facilities are weak
and it needs to be improved a lot. Training is given only at the operational level and not
at the administrative level

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Respondents Points Total Points

Very Good 76 3 228


Adequate 64 2 128
Weak 20 1 20
Basically Non- 0 0 0
existent
Total 160 6 376

From Simple Weighted Average:


376/6=62.6

It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist

_____________________________________________________________________ 73
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Performance evaluation systems

Category No of Respondents %

Very Good 68 42.5


Adequate 72 45
Weak 20 12.5
Basically Non- 0 0
Existent

50%
45%
45% 42.50%

40%

35%

30%

25%

20%

15% 12.50%

10%

5%
0%

0%
Very Good Adequate Weak Basically Non existent

About 42.5% of the employees are totally satisfied by the performance evaluation system
in BMTC and it does not require any improvement.
About 45% of the employees feel that performance evaluation is adequate and it needs to
improve.

About 12.5% of the employees feel that it is totally weak and needs to improve a lot.

_____________________________________________________________________ 74
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Respondents Points Total Points

Very Good 68 3 204


Adequate 72 2 144
Weak 20 1 20
Basically Non- 0 0 0
existent
Total 160 6 368

From Simple Weighted Average:


368/6=61.3

It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Employee discipline

Category No of Respondents %

Very Good 84 52.5


Adequate 64 40
Weak 12 7.5
Basically Non- 0 0
Existent

60%

52.50%

50%

40%
40%

30%

20%

10%
7.50%

0%
0%
Very Good Adequate Weak Basically Non existent

About 52.5% of the employees feel that there is a very good employee discipline in the
organization.

About 40% of the employees feel that there is adequate employee discipline and needs to
be improved.

About only 7.5% of the employees feel that the employee discipline is weak and needs to
be improved a lot.

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Points Total Points


Respondents
Very Good 84 3 252
Adequate 64 2 128
Weak 12 1 12
Basically Non- 0 0 0
existent
Total 160 6 392

From Simple Weighted Average:


392/6=65.3

It lies between 65-75 which indicate that HR activities are complete,


effective and meeting most legal compliances

_____________________________________________________________________ 77
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Labor welfare system

Category No of Respondents %

Very Good 88 55
Adequate 56 35
Weak 16 10
Basically Non- 0 0
Existent

60% 55%

50%

40% 35%

30%

20%

10%

10%

0%

0%
Very Good Adequate Weak Basically Non existent

About 55% of the employees feel that there is a very good labour welfare system in the
organization.

About 35% of the employees feel that there is adequate labour welfare system and needs
to be improved.

About only 10% of the employees feel that the labour welfare system is weak and needs
to be improved a lot.

_____________________________________________________________________ 78
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

Total No of Respondents=160

Category No of Points Total Points


Respondents
Very Good 88 3 264
Adequate 56 2 112
Weak 16 1 16
Basically Non- 0 0 0
existent
Total 160 6 392

From Simple Weighted Average:


392/6=65.3

It lies between 65-75 which indicate that HR activities are complete,


effective and meeting most legal compliances

_____________________________________________________________________ 79
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

FINDINGS

General findings are:

1. It is the only profit making public sector urban transportation corporation in the
country
2. An excellent work culture has led to various ideas and creative projects possible
only through the efforts of the efforts of the organization training and
development programs.
3. The use of technical people to frame recruitment tests and conduct interviews has
helped the organization to acquire the best technical employees, as they are
involved in the recruitment process
4. The use of latest technology has taken them to their new heights

Audit Findings:

1. Recruitment procedure and selection criteria in the organization is perfect and


needs no further improvement.
2. Job classification and grading in the organization is adequate and needs to
improve in this area
3. Remuneration, employment benefits and terms and conditions of employment
are adequate and needs to improve
4. Lowest cadre in the organization are not paid much attention, they are taken on
contract basis and their contract is renewed after every 5 years Remuneration
given to them is also low
5. Working environment and facilities has to improved to improved

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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

6. Work pressure on drivers and conductors is high which needs to be reduced.


Buses given to them should be in good condition.

7. Training given to the employees is good but periodic training has to be


encourage
8. Performance evaluation has to be improved ,performance appraisal should be
done periodically
9. Employee discipline and labour welfare system is good .

_____________________________________________________________________ 81
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

SUGGESTION

1. BMTC shall increase the training duration to new employee


2. Since BMTC is making profits, it can increase the pay scale to the employee,
especially for the mechanics, drivers, conductors and helpers
3. The company can allocate more funds to Human Resource Development
Activities in the organization.
4. Organization should create proper communication channels among top-middle
and lower management
5. Working environment should be improved.
6. The company must recognize the need for training and development of
employees, so as to increase the knowledge, skill and attitude of the
employees
7. The company must give importance to recreation and other activities addition
to working.

_____________________________________________________________________ 82
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

CONCLUSION

Human Resource Practices are effective in certain aspects like recruitment and selection
procedure, labour welfare system, job grading and classification. By HR Audit analysis
research student came to conclusion Human Resource Department is working effectively
only in certain aspects like performance evaluation system, working and facilities has to
be improved. Lower cadre of the organization should be taken care in terms of their
remuneration and work load. Drivers should be provided with buses which are in good
condition so that they can keep up time as per scheduled timings

How ever during the course of the study few employees feel that they are not treated well
by the management, it is all common in large organization. Where some disciplinary
measure to be followed.

The management should take extra attention to build up the morale of the employees and
motive to work for the corporation

During my research work the response from the members of the HR department and the
employees was good which greatly helped me in doing the Audit

It can be concluded that as far as human resource management is concerned, the


management of BMTC is managing its employees in a better way.

_____________________________________________________________________ 83
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

BIBLIOGRAPHY

1. Business Organization and Management By M.C.Shula

2. Principles and Practice Of Management By R.S.Gupta, & B.D.Sharma

3. Industrial Engineering and Management By O.P.Khanna

4. Personnel Management and Industrial Relation By N.G.Nair

5. BMTC website www.bmtcinfo.com

_____________________________________________________________________ 84
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

APPENDIX

Questionnaire

1. Is there a well structured HR unit in the organization?


Yes
No

2. Does HR unit monitor an employee function?


Yes
No

3. Recruitment procedure and selection criteria in the organization.


Very Good
Adequate
Weak
Basically Nonexistent

4. Is recruitment selection process unbiased?


Yes
No

5. Job classification and grading


Very Good
Adequate
Weak
Basically Nonexistent

6. Remuneration, employment benefits and terms and conditions of


employment
Very Good
Adequate
Weak
Basically Nonexistent

7. Are you satisfied by your salary?


Yes
No

_____________________________________________________________________ 85
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

8. The working environment and facilities


Very Good
Adequate
Weak
Basically Nonexistent

9. Are employees encouraged to give suggestions to improve operational


system?
Yes
No

10. Are best suggestion suitably rewarded?


Yes
No

11. Training and development


Very Good
Adequate
Weak
Basically Nonexistent

12. Are employees sent for training periodically?


Yes
No

13. Does HR unit monitor training activities satisfactorily?


Yes
No

14. Performance evaluation systems


Very Good
Adequate
Weak
Basically Nonexistent

15. Has HRD unit devised effective performance appraisal system?


Yes
No

_____________________________________________________________________ 86
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

16. Employee discipline


Very Good
Adequate
Weak
Basically Nonexistent
17. Does HR unit attempts to the personal grievances of individual employees
and settles them?
Yes
No

18. Has HR management released grievances redressal procedures?


Yes
No

19. Labor welfare system


Very Good
Adequate
Weak
Basically Nonexistent
20. Is there a welfare officer in the organization?
Yes
No

21. Are there welfare facilities and benefits like uniform, accident insurance,
LTC and other facilities?
Yes
No

22. Is there a qualified safety officer?


Yes
No

23. Are employees trained in First Aid application?


Yes
No

24. Are you provided with adequate safety at work place?


Yes
No

_____________________________________________________________________ 87
M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC

25. Does HR unit organize farewell parties to retiring employees?


Yes
No

26. Are retiring employees issued with service certificates?


Yes
No

_____________________________________________________________________ 88
M.P.Birla Institute of Management, Bangalore

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