BMTC-Pattar Savita-0493
BMTC-Pattar Savita-0493
BMTC-Pattar Savita-0493
A PROJECT REPORT ON
Submitted By
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
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
PRINCIPAL’S CERTIFICATE
This to certify that this report titled “ HUMAN RESOURSE AUDIT IN BMTC ”
has been prepared by MISS. PATTAR SAVITA SHASHIKANT bearing the
registration no.04 XQCM 6063 under the guidance and supervision of Prof.
SUMITHRA SREENATH MPBIM, Bangalore.
Date: (Dr.N.S.Malavalli)
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
GUIDE’S CERTIFICATE
This is to certify that the Project Report entitled “HUMAN RESOURSE AUDIT IN
BMTC” done by PATTAR SAVITA SHASHIKANT bearing Registration No.04
XQCM 6063 is a bonafide work done carried under my guidance during the
academic year 2005-06 in a partial fulfillment of the requirement for the award of
MBA degree by Bangalore University. To the best of my knowledge this report
has not formed the basis for the award of any other degree.
Date :
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
ACKNOWLEDGEMENT
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.
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Human Resource Audit in BMTC
INDEX
1 Executive Summary
2 Introduction to HR Audit
3 Industry Profile
4 Company Profile
5 Departments in BMTC
6 Research Methodology
7 Study of HR Department
9 Audit Analysis
10 Findings
11 Suggestion
12 Conclusion
13 Bibliography
14 Appendix
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Human Resource Audit in BMTC
EXECUTIVE SUMMARY
BMTC has its origin in a private company called Bangalore Metro Transport limited
founded in 1940 catering to the entire city with just 98 buses .Today the BMTC has been
giving transport service to the people with 28 minor bus stations and 4035 buses
operating 3875 schedules, serving about 32 lakhs passenger every day. Each day it has a
turnover of Rs1,73,00,000. Now BMTC has been an ideal public transport model to the
entire nation.
The topic HR audit was selected to understand the functioning of HRD systems and
procedures in order to evaluate the performance of HR department. The audit of
employee evaluation system is done in detail. HR Audit is done with the following
objective
• To study and analyze the HR department and its functions in BMTC
• To Audit the HR department in order to evaluate the HR practices.
• To Audit the Employee Evaluation System in detail.
A HR Audit cover the activities of the department in BMTC and cover beyond .because
people’s problems are not confined to HR department alone .Thus the audit has a broader
scope. It evaluates the HR functions, the use its procedures by higher authorities and the
impact of these on the employees in BMTC.
In HR Audit we may adopt any of the five approaches for the purpose of evaluation.
Those are
• Comparative approach
• Outside authority approach
• Statistical approach
• Compliance approach
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Human Resource Audit in BMTC
• MBO(Management By Objective) approach
The statistical tool used for HR audit is Simple weighted average method. Based on this
tool HR Audit ratings are calculated and conclusion is being drawn.
After HR audit the study has the following findings Recruitment procedure and selection
criteria in the organization is perfect and needs no further improvement. Job classification
and grading in the organization is adequate and needs to improve in this area.
Remuneration, employment benefits and terms and conditions of employment are
adequate and needs to improve.
Lowest cadre in the organization is not paid much attention, they are taken on
contract basis and their contract is renewed after every 5 years Remuneration given to
them is also low. Working environment and facilities has to be improved. Work pressure
on drivers and conductors is high which needs to be reduced. Buses given to them should
be in good condition.
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Human Resource Audit in BMTC
INTRODUCTION TO HR AUDIT
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.
The other purpose of conducting a human resource audit is to support the overall
business plan of the organization. The process has three parts:
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Human Resource Audit in BMTC
• To identify gaps between the current practices and policies with that of the
business objective; and
1) Legal compliance
2) Compensation/Salary Administration
3) Employment/Recruiting
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4) Orientation
5) Terminations
7) Employee Relations
8)Communications
9) Files/Record Maintenance/Technology
The Human Resource audits should be done every twelve to eighteen months and should
coincide with the organizations business planning cycle. While some will say that the
audit should be done annually, but since it is such a large task pushing it to every
eighteen months is fine but definitely should not go beyond two years. The other option is
to establish an audit cycle to break the task into manageable sized pieces.
When planning an audit of your Human Resource function, here are a few things to
consider:
Timing: When would be the best time to conduct an HR audit is dependent upon a
number of considerations such as the audit cycles of other functions. It may be difficult
to have two audits going on at the same time.
What is the normal cycle for implementing changes? If benefits change at one time
during the year and there is a series of open enrollment meetings, that may also be the
best time to announce any changes that come out of the HR audit. So the audit should be
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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.
Follow-up: Taking action on the audit team’s recommendation is critical to the success
and creditability of the audit. As important as selecting the audit team is the selection of
the individual or group of individuals who will be charged with the responsibility of
carrying out the recommendations and implementing the changes. This individual or
individuals needs to have the position and authority to carryout the changes and
recommendations. The reporting relationship needs to be directly to the CEO and/or the
board of directors.
When done correctly auditing all or portions of the human resource function should
strengthen HR’s position and keep it aligned with the business plan of the organization.
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Audit Procedure:
HR management audit allows to rate the extent to which an organization has basic HR
activities in place and how well they are being performed. In deciding upon the rating,
consider also how other managers and employees would rate the activities. The total
score provides the guides for actions that will improve HR activities in the organization.
The main audit scales are as follows
VERY GOOD (Complete, current, and done well) 3 points
ADEQUATE (needs only some updating) 2 points
WEAK (needs major improvements/changes) 1 point
BASICALLY NONEXISTENT 0 points
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
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Human Resource Audit in BMTC
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.
Below 40 Serious potential legal liabilities exist, and it is likely that significant
HR problems are not being addressed
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Transportation:
Transportation is internationalization of production and markets, advance in information
technology, and trends towards out sourcing are revolutionizing this highly competitive
industry today. In the future, the prosperity and survival of transport organization
depends mainly on global alliances, integrated logistics services, precision deliveries and
ever-improving cost performance efficiencies. Beyond advances to meet this general
industry evolution, strategic approach to moving more sustainable logistics and transport.
Transport Industry:
Transport has constant returns –to-scale, production technology, their activity levels are
determined by the total demand for their transport units. Transport industry can be
determined as a function of its infrastructure demand.
Advantages of Public:
The renewal of and re-investment in inner city housing , helpful in reducing journey to
work trips and aiding maximum use of public transport as well as improving social
inclusion.
The re-development of urban areas in advances of virgin land on the city and town out
skirt, further helping to minimize traffic growth.
Vast improvements in the standard of design architecture and layout of higher
density developments , it can no longer be raised high and can help create vibrant
communities. The re-generation of cities to make them safer more attractive so helping to
reduce the drift from town to country.
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Modes of Transport:
There are two modes of transport. They are-
• Public transport mode
• Private transport mode
The different transport modes are aggregated into public and private transport mode.
The consumer do not obtain direct utility from transport ,while transport is only the
cost to the procedures each consumer demands a certain number of passenger unit by
public transport or by private transport.
Each producer demands a certain number of freight unit by public transport and by
private transport.
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Human Resource Audit in BMTC
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COMPANY PROFILE
Mission:
“To provide
Efficient, Economic, Safe, Reliable and Punctual services to the commuters of City and
Sub-urban areas of Bangalore”
- from the Preamble of the Act framed by the
Government of Karnataka for the formation of BMTC
BMTC provide the most affordable and dependable transport service to the people in and
around Bangalore, the capital of Karnataka State, renowned as the Garden City and
Silicon Valley of India. BMTC is an undertaking of the Government of Karnataka,
dedicated to the commoner's transport facility. Their motive is therefore service than
profit. Yet, since their inception, they are able to make profits by making significant
improvement in our work culture.
Today, they are the ONLY PROFIT MAKING PUBLIC SECTOR URBAN
TRANSPORT CORPORATION IN THE COUNTRY.
The returns are used again in their operations as they always strive to improve further the
quality of their service not only in providing comfort to the traveling public but also in
other vital aspects: Containing pollution, easing traffic congestion, saving fuel,
introducing all latest technologies in their operations to save precious time and money as
it will ultimately benefit the people since it is a public undertaking.
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Profile:
Bangalore Metropolitan Corporation, the fourth largest and one and only profit making
urban transport corporation in India, has its origin as a private company called Bangalore
Transport Company Limited in 1940 catering to the entire city with just 98 buses. Then
the government of Mysore took over the City Transport Corporation from the private
company and run the buses up to 10 miles of radius in the city in 1956 calling it
Bangalore Transport Services (BTS).
BMTC came into being and started functioning as an independent corporation with the
effect from 15th August 1977 as per the government order no. HTD 127 TRA 96 dated ih
Aug 1997. BMTC provide most affordable and dependable transports supports service to
the people in and around the Bangalore, the Captial of Karnataka state renowned as
garden city and Silicon Valley of India. The motive of BMTC is service than the profit
Consequent upon the formulation of BMTC the organization was structured under two
tier system namely depots and the corporate office with a view to have close liaison and
better control besides reducing the available intermediating post without sacrificing the
output or efficiency.
BMTC is the most cost effective mode of transport. Its fare is the lowest corporate to
other transport facilities. BMTC buses occupy least space on the roads when the numbers
of road users are taken in to account. One bus easily carries 60 persons on an average
unlike two wheelers and four wheelers. This helps reducing traffic congestion and
increasing road safety and road life.
BMTC saves the most precious fuel and there by saves the most valuable foreign
exchange. Use of more number of two wheelers and four wheelers on the roads means
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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.
1981: The Government constitutes study group with Mr. J.C. Lynn
as its Chairman.
1988: Expert Committee formed under the then Transport Secretary
Mr. S. DoraiRaju.
1988-89: Cabinet Sub Committee set up.
1992: Expert Technical Committee formed under Mr. P. Kodandaramaiah,IPS,
as Chairman
1994: Legislature Committee formed under Mr. P.G.R. Sindhia, as Chairman
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Bifurcating BTS from KSRTC was felt with more urgency:
• The City was extending its boundaries rapidly with new residential localities
coming up day in and day out.
• The population of the City was increasing rapidly.
• Consumer awareness was maturing fast, with expectations more on convenient
and comfortable transport.
Due to closing of Depot-1 at Shanthi nagar to build bus station, the depots strength
is 25
1950= The Chief Minister of the Karnataka B.D.Jatti made the Road Transport
Corporation Act mandatory and started an independent corporation called "Mysore State
Transport Corporation".
On 1 st Aug 1961 the Mysore State Road Transport Corporation is formed by a special
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Act with BTS as one of its division. The corporation was started with the main motto of
rendering service to the customers. It was started with 1518 vehicles, with 37 depots, 6
divisions, and 6200 workers\ employees, 2 regional workshops at Bangalore and Hubli
and one central office in Bangalore.
In 15th Aug 1997 KSRTC was divided and a new corporation for BMTC was carved out
of KSRTC. In November 1997 another new Road Transport Corporation to cater the
traffic needs of North- Western part of Kamataka W(;lS curved out of KSRTC. Recently
one more corporation North East Kamataka Road Transport corporation was formed with
its corporate office at Gulbarga.
Totally, starting from 1997 KSRTC has been split into 4 corporation namely Bangalore
Metropolitan Transport Corporation (BMTC), Kamataka State Transport Corporation
(KSRTC), North East Karnataka Road Corporation(NEKSRTC), and North West
Kamataka Corporation (NWKSRTC).
Recently another corporation under the banner of NEKSRTC was also been framed to
cover the north- eastern belt of the state comprising of the following district Bellary,
Raichur, Gulbarga, Bidar, Koppa!.
BMTC, which is now locked upon as a transport joint is confirming its operations to
Bangalore alone, in other words BMTC offers transport facilities covering Bangalore
District and its outskirts alone.
Though all these corporations have to manage their activities out of their own revenue.
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The policy making rests in the hands of KSRTC. Further since all these corporations have
to operate inherently within the framework of the rules and regulation continued in the
Road Transport Corporation Act.
At Present:
Every day, BMTC
Pay Rs. 9.52 lakh to the Government towards Motor Vehicle tax
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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.
Only passes
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Human Resource Audit in BMTC
DEPARTMENTS IN BMTC
Work Manager
Mechanical Engineer
Charge man
Head Artisan
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Artisan
Assistant Artisan
Helper A
Helper B
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Human Resource Audit in BMTC
Executive Engineer
Assistant Engineer
Draughtsman
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Human Resource Audit in BMTC
System manager
System analyst
Senior Programmer
Programmer
Programmed Administrator
Computer Operator
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4. MEDICAL DEPARTMENT
Staff Nurse
Pharmacist
X-Ray Technician
Attender /Dresser
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Chief Manger
Principal Manager
Training Manger
Instructor
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Human Resource Audit in BMTC
6. DEPARTMENT OF PRINTING
Chief Controller
Deputy controller
Assistant controller
Charge Man
Artisan
Assistant Artisan
Helper
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Human Resource Audit in BMTC
7. LAW DEPARTMENT
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9. ACCOUNT DEPARTMENT
Account Officer
Superintendent (Account)
Supervisor (Account)
Assistant Accountant
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Human Resource Audit in BMTC
Chief Statistician
Statistical Officer
Superintendent (Statistical)
Supervisor (Statistical)
Statistical Assistant
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Human Resource Audit in BMTC
Director (Security & vigilance)
Security Havaldar
Security Guard
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Human Resource Audit in BMTC
Stores Officer
Stores Superintendent
Store Keeper
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RESEARCH METHODOLOGY
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
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Human Resource Audit in BMTC
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:
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Human Resource Audit in BMTC
All the data that was collected during the study was evaluated for its importance towards
the study. Only the data that threw light on topic was taken for consideration.
Consideration and recommendation for improvement in the field of study. The views of
various authorities in the field of this study were presented in the report for due
consideration for their implementation.
Some expected contributions from the study are to help the organization to implement the
suggestions in this report so that it can contribute towards betterment or its service and
profits of the organization.
The research tool used for HR Audit is simple weighted average method. The Audit
questions has mainly four categories and points are being assigned to each .Those are
Category Points
Very good 3
Adequate 2
Weak 1
Basically Nonexistent 0
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Human Resource Audit in BMTC
3. This study is limited in getting information from management and employees through
questionnaires and observation.
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STUDY OF HR DEPARTMENT
Appointment to a post in the Corporation shall be made by any of the following methods,
namely
a) By promotion
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.
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1) The Selection Authority shall after interviewing the candidates, select candidates found
suitable for appointment and shall prepare a list of candidates so selected in the order of
merit.
2) The list of selected candidates so prepared shall be in keeping with the reservations
prescribed for Scheduled Castes, Scheduled Tribes and other Backward Classes as may
be decided by the Government from time to time.
3) The preparation of select list shall be in accordance with the mode of selection (cycle of
vacancies) prescribed by the Government from time to time.
4) The Selection Authority will prepare the select lists of candidates in the order of merit in
each classification of Backward Classes, Scheduled Castes and Scheduled Tribes as
prescribed by the Government from time to time. Provided that candidates belonging to
the above classes whose names figure in the list prepared in the category of general Merit
shall also figure in the merit list prepared as per the classification of Backward Classes,
scheduled Castes and Scheduled Tribes.
5) Appointment of this candidate shall be in the descending order of merit from out of the
lists specified in Sub Regulation 4 as per cycle of vacancies.
6) The List of selected candidates prepared by the Selection Authority shall be equal to the
No. Of existing vacancies plus vacancies that may arise over a period of one year from
the date of publication as may be assessed by the Selection Authority. The Corporation
may be Resolution in exceptional cases extend the validity of any select list for a period
not exceeding six months.
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• Provided that such un-operated portion of the list at the expiry of one year from
the date of publication of the list shall cease to be valid.
• Provided further that the Selection Authority may for reasons to be recorded in
writing quash the whole of the list un-operated portion of the list, as the case
may be, at any point of time.
• Provided further that the Corporation may be Resolution for reasons to be
recorded quash the whole of the list or un-operated portion of any select lists
prepared by various Selection Authorities as the case may be at any point of time.
Irrespective of the procedures prescribed above for direct recruitment of all categories of
Class - IV, Class - Ill, Class - II and above posts, the procedure followed in the State
Government regarding adding of weightage of marks / percentage of marks to the marks
secured by the Rural candidates
Training
1) The candidate who is selected by the Selection Authority and whose name is placed in the
select list of candidates is liable to be called upon to undergo such training on such terms
and conditions for such categories of post as may be prescribed by the Corporation before
his appointment on probation.
2) Any candidate who fails to report for the training prescribed in Sub. Regulation (1) or who
fails to SATISFACTORILY COMPLETE such Training will forefeet his claim for
appointment to the post for which he is placed on the select list. Provided that a.
candidate appointed from another post in the Corporation will be re-evited to the post
held by him prior to selection and training.
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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.
• Housing
• Education
On retirement, employees are given a warm send off recognizing their valuable service.
The monetary benefits due to the retired employees such as Gratuity, Provident Funds,
Encashment of Leave (admissible), and other benefits are settled immediately so that the
retired employees do not suffer for want of funds. Their wishes will be transferred to the
employees in-service as an inspiration.
Labour Welfare
• Crew Rest Rooms are provided at depots,
• Wage arrears, DA installments and difference of HRA, CCA arrears paid
regularly,
• Periodical grievance meeting conducted at depots,
• Deaddiction, medical camps, WAPPA programs organized,
• Transparency in recruitment and disciplinary cases.
• Cash award for meritorious students BMTC employee's children
• Rs.2500/- Educational advance of children of BMTC employees.
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Category No of Respondents %
Yes 132 82.5
No 28 17.5
Total 160 100
NO, 17.50%
Yes, 82.50%
According to survey 82.5 % feel that their HR unit is well structured and about 17.5%
feel that it needs to be improved a lot in its structure and practices. Employees has to be
educated about the functions and practices of HR unit particularly lower cadre of BMTC.
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Category No of Respondents %
Yes 132 83
No 28 17
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
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Selection Process
Category No of Respondents %
Yes 108 67.5
No 52 32.5
Total 160 100
NO, 32.50%
Yes, 67.50%
About 67.5% of the employee feels that the selection process in BMTC is totally
unbiased and there is no need to care of the system.
About 32.5% of the employee feels that the selection procedure is biased.
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Salary
Category No of Respondents %
Yes 124 77.5
No 36 22.5
Total 160 100
NO, 22.50%
Yes, 77.50%
About 77.5% of the employee are satisfied by their salary they are getting
from BMTC.
About 22.5% of the employee are not satisfied by their salary. They feel is should be
hiked.
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Suggestion Encouragement
Category No of Respondents %
Yes 112 70
No 48 30
Total 160 100
NO, 30%
Yes, 70%
About 70% of the employee feel that their suggestion are encouraged in BMTC to
improve its operational system.
About 30% of the employee are feel that their suggestion are not encouraged in BMTC to
improve its operational system.
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Suggestion Reward
Category No of Respondents %
Yes 120 75
No 40 25
Total 160 100
NO, 25%
Yes, 75%
About 75% of the employee feel that their suggestion are rewarded in BMTC to
improve its operational system.
About 25% of the employee are feel that their suggestion are not rewarded in BMTC to
improve its operational system.
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Periodic Training
Category No of Respondents %
Yes 124 77.5
No 36 22.5
Total 160 100
NO, 22.50%
Yes, 77.50%
About 77.5% of the employees say that they are sent for periodic training ,who are
mostly from operational section and some are from administrative section.
About 22.5% of the employees say that they are sent for periodic training ,who are
mostly from administrative section clerical workers
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Category No of Respondents %
Yes 128 80
No 32 20
Total 160 100
NO, 20%
Yes, 80%
About 80% of the employees feel that HR unit monitors training activities satisfactorily.
It does not require any improvement.
About 20% of the employees feel that HR unit does not monitor training activities
satisfactorily and requires lot of improvement.
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Category No of Respondents %
Yes 120 75
No 40 25
Total 160 100
NO, 25%
Yes, 75%
About 75% of the employees feel that HRD unit has devised effective performance
appraisal system.
About 25% of the employees feel that HRD unit has not devised the performance
appraisal system properly.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 104 65
No 56 35
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.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 84 52.5
No 76 47.5
Total 160 100
52.50%
60%
47.50%
50%
40%
30%
20%
10%
0%
Yes NO
About 52.5% of the employees know that HR management has released the grievance
redressal procedure in the organization.
About 47.5% of the employees do not know that HR management has released the
grievance redressal procedure in the organization. Employees need to be educated about
the grievance redressal procedure in the organization.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 148 92.5
No 12 7.5
Total 160 100
100%
92.5%
90%
80%
70%
60%
50%
40%
30%
20%
10% 7.5%
0%
Yes NO
About 92.5% of the employees know that there is a labour welfare officer in the
organization.
About only 7.5% of the employees do not know that there is a labour welfare officer in
the organization who are mostly from the operational section and of the lowest cadre in
the organization.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 144 90
No 16 10
90%
100%
90%
80%
70%
60%
50%
40%
30%
10%
20%
10%
0%
Yes NO
About 90% of the employees feel that there are welfare facilities and benefits like
uniform, accident insurance and other facilities in the organization.
About only 10% of the employees do not feel that there are welfare facilities and benefits
like uniform, accident insurance and other facilities in the organization.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 112 70
No 48 30
Total 160 100
NO, 30%
Yes, 70%
About 70% of the employees are aware of that there is a qualified safety officer in the
organization.
About only 30% of the employees are not aware of that there is a qualified safety officer
in the organization.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 100 62.5
No 60 37.5
Total 160 100
NO, 37.50%
Yes, 62.50%
About 62.5% of the employees say that they are trained in first aid applications.
About only 37.5% of the employees say that they are not trained in first aid applications
who are mostly from administrative section.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 136 85
No 24 15
Total 160 100
NO, 15%
Yes, 85%
About 85% of the employees feel that they are provided with adequate safety at work
place.
About only 15% of the employees feel that they are not provided with adequate safety at
work place.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Yes 148 92.5
No 12 7.5
Total 160 100
100%
92.50%
90%
80%
70%
60%
50%
40%
30%
20%
10% 7.50%
0%
Yes NO
About 92.5% of the employees say that the HR unit organizes farewell parties to the
retiring employees in the organization.
About only 7.5% of the employees are not aware that, the HR unit organizes farewell
parties to the retiring employees in the organization.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
No 28 17.5
NO, 17.50%
Yes, 82.50%
About 82.5% of the employees are aware that service certificates are issued to the retiring
employees.
About only 17.5% of the employees are not aware that service certificates are issued to
the retiring employees.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
AUDIT ANALYSIS
Recruitment procedure and selection criteria in the organization
Category No of Respondents %
70%
62.50%
60%
50%
40%
30% 27.50%
20%
10%
10%
0%
0%
Very Good Adequate Weak Basically Non existent
About 62.5% of the employees feel that recruitment and selection criteria
is perfect and needs no further improvement.
About 27.5% of the employee feel that it is adequate and it needs to improve in its
functioning
About only 10% of the employee feel that recruitment and selection system is weak and it
needs to be improved a lot
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Very Good 80 50
Adequate 64 40
Weak 16 10
Basically Non- 0 0
Existent
75%
65%
50.00%
55%
40.00%
45%
35%
25%
10.00%
15%
0.00%
5%
-5%
Very Good Adequate Weak Basically Non existent
About 50% of the employees are totally satisfied by the job classification
and grading system in BMTC.
About 40% of the employee feel that job classification and grading is adequate and it
need to improve.
Only about 10% of the employees feel that the system is totally weak and needs to
improve a lot.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
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
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
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
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Weak 12.50%
Adequate 40%
About 47.5% of the employees feel that training and development is perfect and
needs no further improvement.
About 40% of the employee feel that it is adequate and it needs to improve in its
functioning
About only 12.5% of the employee feel that working environment and facilities are weak
and it needs to be improved a lot. Training is given only at the operational level and not
at the administrative level
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
50%
45%
45% 42.50%
40%
35%
30%
25%
20%
15% 12.50%
10%
5%
0%
0%
Very Good Adequate Weak Basically Non existent
About 42.5% of the employees are totally satisfied by the performance evaluation system
in BMTC and it does not require any improvement.
About 45% of the employees feel that performance evaluation is adequate and it needs to
improve.
About 12.5% of the employees feel that it is totally weak and needs to improve a lot.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
It lies between 55-65 which indicate that HR activities are being performed
adequately, but are not as complete or effective as they should be. Also it is
likely that some potential legal risk exist
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Employee discipline
Category No of Respondents %
60%
52.50%
50%
40%
40%
30%
20%
10%
7.50%
0%
0%
Very Good Adequate Weak Basically Non existent
About 52.5% of the employees feel that there is a very good employee discipline in the
organization.
About 40% of the employees feel that there is adequate employee discipline and needs to
be improved.
About only 7.5% of the employees feel that the employee discipline is weak and needs to
be improved a lot.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Category No of Respondents %
Very Good 88 55
Adequate 56 35
Weak 16 10
Basically Non- 0 0
Existent
60% 55%
50%
40% 35%
30%
20%
10%
10%
0%
0%
Very Good Adequate Weak Basically Non existent
About 55% of the employees feel that there is a very good labour welfare system in the
organization.
About 35% of the employees feel that there is adequate labour welfare system and needs
to be improved.
About only 10% of the employees feel that the labour welfare system is weak and needs
to be improved a lot.
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
Total No of Respondents=160
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
FINDINGS
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:
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
SUGGESTION
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
CONCLUSION
Human Resource Practices are effective in certain aspects like recruitment and selection
procedure, labour welfare system, job grading and classification. By HR Audit analysis
research student came to conclusion Human Resource Department is working effectively
only in certain aspects like performance evaluation system, working and facilities has to
be improved. Lower cadre of the organization should be taken care in terms of their
remuneration and work load. Drivers should be provided with buses which are in good
condition so that they can keep up time as per scheduled timings
How ever during the course of the study few employees feel that they are not treated well
by the management, it is all common in large organization. Where some disciplinary
measure to be followed.
The management should take extra attention to build up the morale of the employees and
motive to work for the corporation
During my research work the response from the members of the HR department and the
employees was good which greatly helped me in doing the Audit
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
BIBLIOGRAPHY
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
APPENDIX
Questionnaire
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
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M.P.Birla Institute of Management, Bangalore
Human Resource Audit in BMTC
21. Are there welfare facilities and benefits like uniform, accident insurance,
LTC and other facilities?
Yes
No
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Human Resource Audit in BMTC
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M.P.Birla Institute of Management, Bangalore