BMTC Pattar Savita 0493

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
_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore 1
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
_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore
PRINCIPALS 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 Date:
Principal (Dr.N.S.Malavalli)
GUIDES 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 Date :
Prof.SUMITHRA SREENATH
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 _____________________________________________________________________ M.P.Birla Institute of Management, Bangalore 5
INDEX
Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Executive Summary
Particulars
Page.No
Introduction to HR Audit Industry Profile Company Profile Departments in BMTC Research Methodology Study of HR Department Analysis and Interpretation Audit Analysis Findings Suggestion Conclusion Bibliography Appendix
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 peoples 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 7
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.
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;
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 organizations 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 organizations and the departments 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
_____________________________________________________________________ 10 M.P.Birla Institute of Management, Bangalore
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
Human Resource Audit in BMTC 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 teams 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 HRs position and keep it aligned with the business plan of the organization.
Human Resource Audit in BMTC 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) ADEQUATE (needs only some updating) WEAK (needs major improvements/changes) BASICALLY NONEXISTENT 3 points 2 points 1 point 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
Human Resource Audit in BMTC 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 _____________________________________________________________________ 14 M.P.Birla Institute of Management, Bangalore
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.
Human Resource Audit in BMTC 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..
Human Resource Audit in BMTC Some public transport companies in India: AIR-INDIA INDIAN AIR LINES RAILWAY KSRTC BMTC
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.
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 _____________________________________________________________________ 19 M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC 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
Human Resource Audit in BMTC 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 _____________________________________________________________________ 21 M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC 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.
Human Resource Audit in BMTC 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 Operate 3875 schedules Deploy a fleet of 4035 buses Make 58,000 trips Performe 8.75 Lakhs Service Kilometres Carry 32.00 Lakhs Passengers Earn around Rs. 173.00 lakhs and Pay Rs. 9.52 lakh to the Government towards Motor Vehicle tax
Human Resource Audit in BMTC BMTC discharge their social obligations by: Connecting all villages around the City through its regular service with buses indicating destination in red board. Plying City services to the core areas to ease congestion with buses indicating destination in black board. Running limited stop buses to save time of the commuters Providing comfort oriented fast moving 'Pushpak' buses Chartering services to various industries, schools and colleges Offering subsidized travel to the deserving sections of the society Issuing passes to various segments of the society Providing Eco-friendly Parisara Vahini buses. Running Vestibule buses to carry more passengers. Plying Mini buses to provide transport to remote sub urban areas Upgrading Transport services by introducing 3 Volvo buses in the city 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
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 _____________________________________________________________________ 25 M.P.Birla Institute of Management, Bangalore
Artisan
Assistant Artisan
Helper A
Helper B
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
3. ELECTRONIC DATA PROCESSING DEPARTMENT
Chief System manager
System manager
System analyst
Senior Programmer
Programmer
Programmed Administrator
Computer Operator
Senior Data Entry operator
4. MEDICAL DEPARTMENT
Chief Medial Officer
Senior Medical Officer
Senior Medical Officer Junior
Staff Nurse
Pharmacist
X-Ray Technician
Junior Laboratory technician
Attender /Dresser
5. HUMAN RESOURCE DEVELOPMENT DEPARTMENT
Chief Manger
Principal Manager
Training Manger
Assistant Training Manger
Instructor
6. DEPARTMENT OF PRINTING
Chief Controller
Deputy controller
Assistant controller
Charge Man
Head Artisan Printing
Artisan
Assistant Artisan
Helper
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
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
10. STATISTICAL DEPARTMENT
Chief Planning & statistical Officer
Chief Statistician
Statistical Officer
Assistant Statistical Officer
Superintendent (Statistical)
Supervisor (Statistical)
Statistical Assistant
11. SECURITY & VIGILANCE DEPARTMENT
Human Resource Audit in BMTC 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
Human Resource Audit in BMTC 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
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
Human Resource Audit in BMTC 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
Human Resource Audit in BMTC 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 Very good Adequate Weak Basically Nonexistent
Points 3 2 1 0
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.
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 Class111 or Class-IV post.
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.
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.
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.
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.
ANALYSIS AND INTERPRETATION

Well Structured HR unit
Category Yes No Total
No of Respondents 132 28 160
% 82.5 17.5 100
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.
Human Resource Audit in BMTC Monitoring employee function by HR unit
% 83 17 100
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
Human Resource Audit in BMTC Selection Process
% 67.5 32.5 100
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.
Human Resource Audit in BMTC Salary
% 77.5 22.5 100
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.
Human Resource Audit in BMTC Suggestion Encouragement
% 70 30 100
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.
Human Resource Audit in BMTC Suggestion Reward
% 75 25 100
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.
Human Resource Audit in BMTC Periodic Training
% 77.5 22.5 100
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
Human Resource Audit in BMTC Monitoring of Training Activities
% 80 20 100
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.
Human Resource Audit in BMTC Performance Appraisal System
% 75 25 100
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.
Human Resource Audit in BMTC Handling of personal grievances
% 65 35 100
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.
Human Resource Audit in BMTC Grievance Redressal Procedure
% 52.5 47.5 100
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.
Human Resource Audit in BMTC Awareness about Labour Welfare Officer
% 92.5 7.5 100
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.
Human Resource Audit in BMTC Welfare Facilities and Benefits
% 90 10 100
100%
90%
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
% 70 30 100
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.
Human Resource Audit in BMTC Training of First Aid Application
% 62.5 37.5 100
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.
Human Resource Audit in BMTC Safety at Work place
% 85 15 100
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.
Human Resource Audit in BMTC Organizing Farewell Parties to Retiring Employees
% 92.5 7.5 100
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.
Human Resource Audit in BMTC Issuing Of Service Certificates
% 82.5 17.5 100
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. _____________________________________________________________________ 63 M.P.Birla Institute of Management, Bangalore
AUDIT ANALYSIS
Recruitment procedure and selection criteria in the organization
Category Very Good Adequate Weak Basically NonExistent
No of Respondents 100 44 16 0
% 62.5 27.5 10 0
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
Human Resource Audit in BMTC Total No of Respondents=160
Category
No Respondents
of Points
Total Points
Very Good Adequate Weak Basically NonExistent Total
100 44 16 0
3 2 1 0
300 88 16 0
160
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.
Human Resource Audit in BMTC Job classification and grading
% 50 40 10 0
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
Category Very Good Adequate Weak Basically NonExistent Total
Points 3 2 1 0
Total Points 240 128 16 0
160
388
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
Human Resource Audit in BMTC Remuneration, employment benefits and terms and conditions of employment
% 47.5 40 12.5 0
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
Total No of Respondents=160
Category Very Good Adequate Weak Basically Nonexistent Total
Points 3 2 1 0
160
376
From Simple Weighted Average: 376/6=62.6
Human Resource Audit in BMTC Working environment and facilities
% 47.5 40 10 2.5
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
Points 3 2 1 0
160
372
Human Resource Audit in BMTC Training and development
% 47.5 40 12.5 0
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 _____________________________________________________________________ 72 M.P.Birla Institute of Management, Bangalore
Points 3 2 1 0
160
376
Human Resource Audit in BMTC Performance evaluation systems
No of Respondents % 68 72 20 0 42.5 45 12.5 0
50% 45% 45% 42.50%
40%
35%
30%
25%
20%
15%
12.50%
10%
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.
Points 3 2 1 0
160
368
Human Resource Audit in BMTC Employee discipline
% 52.5 40 7.5 0
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.
Category
No Respondents
of Points
Total Points
Very Good Adequate Weak Basically Nonexistent Total
84 64 12 0
3 2 1 0
252 128 12 0
160
392
It lies between 65-75
which indicate that HR activities are complete,
effective and meeting most legal compliances
Human Resource Audit in BMTC Labor welfare system
% 55 35 10 0
60%
55%
50%
40%
35%
30%
20% 10%
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
Category
No Respondents
of Points
Total Points
Very Good Adequate Weak Basically Nonexistent Total
88 56 16 0
3 2 1 0
264 112 16 0
160
392
It lies between 65-75 which indicate that HR activities are complete, effective and meeting most legal compliances
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
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 .
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.
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.
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
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
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
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

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Human Resource Audit in BMTC

PATTAR SAVITA SHASHIKANT (REGD.NO:04XQCM 6063)

PROF. SUMITHRA SREENATH

Human Resource Audit in BMTC

PLACE: BANGALORE DATE: PATTAR SAVITA SHASHIKANT

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

Place: Bangalore Date:

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

Place: Bangalore Date :

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

PATTAR SAVITA SHASHIKANT _____________________________________________________________________ M.P.Birla Institute of Management, Bangalore 5

Human Resource Audit in BMTC

Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Executive Summary

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

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

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

To identify and prioritize management issues relating to human resources;

_____________________________________________________________________ M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

To identify any legal difference and potential exposure.

The Core Reasons for HR-Audit

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Human Resource Audit in BMTC

_____________________________________________________________________ 11 M.P.Birla Institute of Management, Bangalore

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The categories considered in HR Audit are:

_____________________________________________________________________ 13 M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

SERVICE INDUSTRY PROFILE

_____________________________________________________________________ 15 M.P.Birla Institute of Management, Bangalore

Types of transport industry: Air transport Water transport Road transport

_____________________________________________________________________ 16 M.P.Birla Institute of Management, Bangalore

_____________________________________________________________________ 17 M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

Government of Karnataka for the formation of BMTC

_____________________________________________________________________ 18 M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

Reasons for Starting:

_____________________________________________________________________ 20 M.P.Birla Institute of Management, Bangalore

_____________________________________________________________________ 22 M.P.Birla Institute of Management, Bangalore

_____________________________________________________________________ 23 M.P.Birla Institute of Management, Bangalore

_____________________________________________________________________ 24 M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

1. MECHANICAL ENGINEERING DEPARTMENT

Chief Mechanical Engineer

Divisional Mechanical Engineer

Assistant Mechanical Engineer

Assistant Work Superintendent

Head Artisan _____________________________________________________________________ 25 M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

_____________________________________________________________________ 26 M.P.Birla Institute of Management, Bangalore

Human Resource Audit in BMTC

2. CIVIL ENGINEERING DEPARTMENT

Chief Civil Engineer

Assistant Executive civil Engineer

Junior Engineer Civil special grade class (III)

Junior Engineer Civil Class (III)

Assistant Draughts man