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INDEX Sl.

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Particulars Executive Summary 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

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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 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 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 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 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.

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) 3 points 2 points

WEAK (needs major improvements/changes) BASICALLY NONEXISTENT

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

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

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 regeneration of cities to make them safer more attractive so helping to reduce the drift from town to country. 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..

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 Suburban 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 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:

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 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. 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

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

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 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 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

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

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 Points 3 2 1

Basically Nonexistent 0 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. f) 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. 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

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.

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. 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.

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. 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

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 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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