CHAPTER – III

HUMAN RESOURCE MANAGEMENT

PRACTICES IN TNSTC LTD

3.1 MEANING AND DEFINITION OF HUMAN RESOURCE

MANAGEMENT

Human Resources Management means employing people,

developing their resources, utilising, maintaining and compensating

their services in tune with the job and organisational requirements

with a view to contribute to the goals of the organisation, individual

and the society.

(i) Features of Human Resources Management include

 Human Resources Management is concerned with employees

both as individuals and as a group in attaining goals. It is also

concerned with behaviour, emotional and social aspects of

personnel.

 It is concerned with the development of human resources, i.e.

knowledge, capability, skills, potentialities and attaining and

achieving employee goals, including job satisfaction.

 Human resources management covers all levels (low, middle,

and top) and categories (unskilled, skilled, technical,

professional, clerical and managerial) of employees. It covers

both organised and unorganised employees.

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 It applies to the employees in all types of organisations in the

world (industry, trade, service, commerce, economic, social,

religious, political and government departments). Thus, it is

common in all types of organisations.

 Human resources management is a continuous and never

ending process.

 It aims at attaining the goals of organisation, individual and

society in an integrated approach.

 Organisation goals may include survival, growth and

development in addition to profitability, productivity,

innovation, excellence etc.

 Individual employee-goals consist of job satisfaction, job

security, high salary, attractive fringe benefits, challenging

work, pride, status, recognition, opportunity for development

etc.

 Goals of the society include equal employment opportunity,

protecting the disadvantaged sections and physically

handicapped, minimization of inequalities in the distribution of

income by minimizing wage differentials, developing the

society in general by organising developmental activities etc.

 Human resources management is a responsibility of all line

managers and a function of staff managers in an organisation.

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  It is concerned mostly with managing human resources at work.

 Human resources management is the central sub-system of an

organisation and it permeates all types of functional

management, viz., production management, marketing

management and financial management.

 Human resources management aims at securing unreserved co-

operation from all employees in order to attain predetermined

goals.

(ii) Importance of Human Resource Management

Human resources play a crucial role in the development process

of modern economics. Arthur Lewis observed, “there are great

differences in development between countries which seem to have

roughly equal resources, so it is necessary to enquire into the

difference in human behaviour.” It is often felt that though the

exploitation of natural resources, availability of physical and financial

resources and international aid play prominent roles in the growth of

modern economies, none of these factors is more significant than

efficient and committed manpower. It is in fact said that all

development comes from the human mind.

(iii) Human Resources in the Nation’s Well-being

A nation with abundance of physical resources will not benefit

itself unless human resources make use of them. Infact, human

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resources with right attitude are solely responsible for making use of

national resources and for the transformation of traditional economies

into the modern industrial and knowledge economies.

(iv) Man vis-a-vis Machine

Most of the problems in organisational sections are human and

social rather than physical, technical or economic. No industry can be

rendered efficient so long as the basic fact remains unrecognised that

it is principally human. It is not a mass of machines and technical

processes but a body of men.

(v) Social Significance

Proper management of personnel enhances their dignity by

satisfying their social needs. This is done by

(a) maintaining a balance between the jobs available and the

jobseekers according to the qualifications and needs;

(b) providing suitable and most productive employment,

which might bring them psychological satisfaction;

(c) making maximum utilization of the resources in an

effective manner and paying the employee a reasonable

compensation in proportion to the contribution made by

him;

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 (d) eliminating waste or improper use of human resources,

through conservation of their normal energy and health

and

(e) by helping people make their own decisions that are in

their interests.

(vi) Professional Significance

By providing a healthy working environment, it promotes team

work in the employees. This is done by

(a) maintaining the dignity of the employee as a ‘human-

being’

(b) providing maximum opportunities for personal

development

(c) providing healthy relationship between different work

groups so that work is effectively performed

(d) improving the employees’ working skill and capacity

(e) correcting the errors of wrong postings and proper

reallocation work

(vi) Functions of Human Resource Management

The functions of HRM can be broadly classified into two

categories, viz., (I) Managerial functions and (II) Operative functions.

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I. Managerial Functions

Managerial functions of Human Resource Management involve

planning, organising, directing and controlling. All these functions

influence the operative functions.

II. Operative Functions

1. Employment

It is the first operative function of Human Resources

Management (HRM). Employment is concerned with securing and

employing the people possessing the required kind and level of human

resources necessary to achieve the organisational objectives. It covers

functions such as Job Analysis, Human Resource Planning,

Recruitment, Selection, Placement and Induction and Orientation

2. Human Resource Development

It is the process of improving, moulding and changing the

skills, knowledge, creative ability, aptitude, values, commitment etc,

based on present and future job and organizational requirements.

These functions include Performance Appraisal, Training,

Management Development, Career Planning and Development,

Internal Mobility, Transfer, Promotion, Demotion and Change and

Organisation Development.

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3. Compensation

It is the process of providing adequate, equitable and fair

remuneration to the employees. It includes Job Evaluation, Wage and

Salary Administration, Incentives, Bonus, Fringe Benefits and Social

Security Measures.

4. Human Relations

Practicing various human resource policies and programmes

like employment, development and compensation and interaction

among employees, create a sense of relationship between the

individual worker and management, among workers and trade unions

and the management.

5. Industrial Relations

Industrial relations refer to the study of relations among

employees, employer, government and trade unions. Industrial

relations include Indian labour market, Trade unionism, Collective

bargaining, Industrial Conflicts, Workers’ participation in

management and Quality circles

3.2 HUMAN RESOURCE MANAGEMENT POLICIES AND

PRACTICES IN TNSTC LTD

The Ministry of Transport, Government of Tamil Nadu,

formulates the Human Resource policies and practices. These policies

are to be implemented by all divisions of TNSTC uniformly. In this

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section, the policies and practices relating to important areas of

Human Resource Management (Personnel factors identified by the

researcher) are explained.

3.3 RECRUITMENT

It is the process of searching for prospective employees and

stimulating them to apply for jobs in an organisation. It deals with

Identification of existing sources of applicants and developing them,

Creation/identification of new sources of applicants, Stimulating the

candidates to apply for jobs in the organisation and Striking a balance

between internal and external sources.

3.4 SELECTION

It is the process of ascertaining the qualifications, experiences,

skills, knowledge etc., of an applicant with a view to appraising

his/her suitability to a job. This function includes Framing and

developing application blanks, Creating and developing valid and

reliable testing techniques, Formulating interviewing techniques,

Checking of references, Setting up a medical examination policy and

procedure, Line manager’s decision, Sending letters of appointment

and rejection and Employing the selected candidates who report for

duty.

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(i) Compulsory Notification of Vacancies to Employment
Exchange
The corporations do not come under the purview of the Tamil

Nadu Public Service Commission for filling up the vacancies of posts.

Therefore, it has to notify the vacancies of posts to the respective

District Employment Exchange Offices.

The details such as name of posts, number of vacancies, pay

and allowances, physical requirements, educational qualifications,

experience, age limit if any, sex, term of vacancies must also be sent

to the Employment Exchange. Similarly notifications are sent to the

Professional and Executive Employment Office, Madras, for filling up

posts, which require the qualifications of bachelor degree or higher

degree in engineering, medicine, agriculture, veterinary, law or post

graduate degree or diploma in other subjects.

The Employment Offices shall furnish a panel of names of

candidates for interview and selection. If suitable candidates are not

available in their live registers they have to furnish non-availability

certificates. The corporation has to send periodical returns on

employment matters to the Employment Exchanges.

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(ii) Mode of Recruitment

All appointments in Managerial, supervisory, Working group

and Miscellaneous groups to be made by direct recruitment in the

corporation shall be through employment exchanges unless by specific

orders of government. Government lays down order of priority of

categories of persons for recruitment from time to time. However, if a

permanent employee of the corporation possessing the required

qualification applies for direct recruitment to a post in the corporation,

he may be considered for direct recruitment.

(iii) Compassionate Recruitment

If an employee who puts in more than 240 days or work, dies in

harness leaving the family in a helpless condition, a member of his

family (wife/husband/son/unmarried daughter) is eligible for direct

recruitment subject to the availability of vacancy and without

reference to Employment Exchange provided, that the dependant

possesses the necessary qualifications and is within the prescribed age

limit for this purpose.

(iv) Employees Norms

Government has fixed the following employees’ norm for

different categories per bus

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 Category Norm per bus
Conductor 2.5 (Scheduled) 1.5(Spare) per bus
Driver 2.5 (Scheduled) 1.25 (Spare) per bus
Traffic Supervisory 0.15 (Excluding buses condemned or to
condemned)
Technical and Technical Supervisory Technical Technical
per bus Supervisory
per bus
Average age of buses (excluding
condemned and to be condemned)
Within 3 years 1.00 0.06
Over 3 years but less than 4 years 1.12 0.08
Above 4 years 1.15 0.10
Administrative Staff Fleet strength ratio Norm
(Scheduled & Spared)
Below 400 buses 0.77
Above 400 buses but below 750 buses 0.70
Above 750 buses 0.65
Contingent 0.15
Compiled from service rules of Transport Undertakings - IRT, Chennai

(v) Age limit for appointments

A person, to become eligible for appointments by
direct recruitment, should have completed 18 (eighteen) years of age
or any higher minimum age that may be prescribed. In the absence of
fixation of specific upper age limit, for any post, 30 (thirty years) for
open competition 35 (thirty five years) for Most Backward and
Backward Classes (M.B.C.) and (B.C.) and 40 (forty) years for
Scheduled Caste/Scheduled Tribe (S.C./S.T.) have been fixed as upper
age limit. The persons shall not complete the above age limits on the
first day of July of the year in which the appointment is made.

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(vi) Reservation of appointments

The following norms of reservation are applied for direct

recruitment: for scheduled case and scheduled tribe (SC/ST) 18%;

scheduled tribe (S.T.) 1%; most backward classes (M.B.C.) 20%;

backward classes (B.C.) 30% and for open competition (O.C) 31%

apply to direct recruitment in the corporation. Selection of candidates

for appointment is finalised as per an approved order of rotation by

mingling candidates selected under open competition, S.C./S.T.,

M.B.C, B.C quotas.

(vii) General provision for appointment

Appointment to various posts shall be made by the managing

director or by the authority, where the board may declare as
appointing authority, subject to availability of vacancies against the
posts sanctioned by competent authority or Board or Government.
Every employee shall conform to, physical and other
standards/prescribed by the Management, from time to time.
Candidates recruited to certain categories of posts directly in the
managerial cadre or others may be required to execute an agreement to
serve for 3 (three) years or if he undergoes prescribed training, to
serve for 5 years in the manner prescribed by the management.

(viii) Probation

A probationer is on trail for such a period of probation as fixed

by the management before he is appointed as a permanent employee.

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The probation period is generally two years continuous period. It is

provided that no probation shall be necessary with regard to cases of

transfer if the levels of scales are identical.

(ix) Extension, Suspension or Termination of Probation

The appointing authority may, at any time before the expiry of

the prescribed period of probation extend period of probation or

suspend a probationer in a category or discharge him from service in

that category for want of a vacancy. It may, sometimes, terminate the

probationer and/or discharge from service after giving him a

reasonable opportunity of showing cause against the proposed

termination of probation, if it thinks the probationer is incompetent.

(x) Completion of Probation

If the appointing authority decides that the performance of the

probationer, during the period of probation or extended period of

probation has been satisfactory, it shall issue an order declaring the

probationer to have satisfactorily completed the period of probation in

that category. He becomes regular employee since then. His annual

increments will also be regularised.

3.5 TRAINING AND DEVELOPMENT

(i) Training
It is the process of imparting to the employees technical and

operating skills and knowledge. It includes identification of training

needs of the individuals and the company, developing suitable training

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programmes, helping and advising line management in the conduct of

training programmes, imparting of requisite job skills and knowledge

to employees, evaluating the effectiveness of training programmes.

(ii) Training and Education

The need and importance of training the skilled manpower,

before putting actually on the job, was recognised by the TNSTC.

Such training can be divided into two parts, one being under the

Apprentices Act 1961 and the other part being company traineeship.

(iii) Apprentices Act 1961

The Apprentices Act was observed by the corporation to

regulate and control apprenticeship. Apprenticeship is a system by

which an employer undertakes by contract to train a person

systematically during a specified period. There are Trade Apprentices,

Diploma Technician Apprentices and Engineering Graduate

Apprentices. Trade Apprentices should have undergone institutional

training in a school or other institutions affiliated or recognised by the

State Board or State Council of Technical Education.

They should have passed the Trade Test and should possess the

other requirements prescribed. If the institutional training for the

technical trade is for two years the apprenticeship period is one year.

If the former is one year the apprenticeship period is two years. The

apprenticeship period to diploma in engineering or degree in

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engineering is one year. In respect of commercial trade apprentices,

the period of apprenticeship has been fixed as one year. The

corporation is bound to abide by the above requirements to train the

apprentices.

(iv) Apprenticeship and Regularization

A company apprenticeship/trainee is a person who is

undergoing pre-employment training. It is different from the

apprenticeship training engaged under the Apprenticeship Act 1961.

Candidates who have successfully completed the apprenticeship under

the Apprenticeship Act 1961 only shall be taken as TNSTC

Apprenticeship/Trainees. The I.T.I. Trade Certificates holders with a

pass in the National Apprentice Examination taken on daily wages and

after 240 days of duty on daily wages are regularized. The drivers and

conductors are taken on daily wages and on completion of 240 days of

duties; they are regularized on the time scale of pay. No previous

apprenticeship training for them under the Act or Company

Apprenticeship is stipulated.

(v) Training and Orientation

The corporation is running a Driver Training Institute. Before

casual jobs are assigned, drivers are given short-term intensive

training. Besides this, officers and employees are also sponsored for

retraining and refresher programmes organised by various institutions

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like Institute of Road Transport (IRT), Chennai and Central Institute

of Road Transport (CIRT), Pune. The personnel from executive level

to workers level are sorted out to undergo training programmes at

various training institutions like National Institute of Personnel

Management Chennai Chapter, Central Institute of Road transport,

Pune, Tata Engineering Locomotive Corporation Limited, Chennai

and so on. Training is given in the area of tyre management, material

management, workshop standardisation, and computerisation.

Supervisors and executives are encouraged to attend seminars on the

subjects like law, culture, industrial relations, behavioural science etc.

(vi) Types of Training and Development programmes

The different types of Training and Development Programmes

conducted by TNSTC are as follows:

(a) Training programmes for workers

Safety clinic programmes for accident prone / involved

workers, re-transfer course to avoid alcoholism, training programme

on first aid and education of social life counseling.

(b) Development Progremmes (for supervisors)

Road safety and accident investigation, programme on

individual auditing, new scheduling, minimizing absenteeism and

prevention of leakage of revenue etc.

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(c) Development Programmes for Managers

Advance use of Personal computers, pollution control in public

transport, programme on public relation, bus body construction and

maintenance, human resource management and stress management

and self development etc programmes.

3.6 PROMOTION OF WORKERS

The term promotion refers to the movement of an employee

from the lower position to a higher position. Promotion involves

higher status, more remuneration, increased responsibilities, increased

benefits and privileges in the same organisation. Promotion is the

advancement of an employee to a better job-better in terms of greater

responsibilities, more prestige or status, greater skill and especially

increased rate of pay or salary. Promotion is a change from one job to

another that is better in terms of status and responsibilities.

(i) Promotion method adopted in TNSTC

When vacancies arise in TNSTC in higher cadres, the

management used to find out whether qualified workers are available

in the corporation by going through internal employment plans. If

eligible workers are available they will be promoted on the basis of

seniority and at times seniority - cum - merit basis. That is to say, if

there are two or more employees of different length of service with the

required qualification, promotion would be made on seniority basis.

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 But at the same time when two or more workers with equal
service are competing for a post, skill and additional qualification
(merit) would be considered for promotion.

(ii) Procedure of Promotion

The employee at the time of promotions should have
satisfactorily completed the probation. He should possess the requisite
qualification and should have passed the prescribed test, if any. The
promotion shall take effect from the date on which the employee takes
over charge in the higher post unless and otherwise directed
specifically by competent authority. Panel of candidates for promotion
shall be drawn and arranged in order by competent authority
ordinarily once in six months (April and October).

Promotion will be ordered in that order so drawn without

changing the panel for six months. The Board has power to revise the
list in any manner it may consider necessary. An Appellate authority
either on its own accord or on a petition from an aggrieved employee
submitted within six month of passing of order or during an extended
period has power to revise the order by setting aside the promotion
and reverting the persons promoted.

3.7 TRANSFER
It is the process of placing employees in the same level jobs
where they can be utilized more effectively in consistence with their
potentialities and needs of the employees and the organization. It also
deals with:

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  Developing transfer policies and procedures.

 Guiding employees and line management on transfers.

 Evaluating and execution of transfer policies and

procedures.

(i) Procedure of Transfer adopted in TNSTC

Transfers are affected by the management of TNSTC only on

need basis. The usual causes for transfer are:

1. Mutual willingness of staff involved; 2. Individual requests

(depending upon vacancies); 3. Administrative Convenience and

4.Punishment.

Transfer on account of “punishment” is very rare. Whenever

transfer question is contemplated, it will be done to enhance

convenience of staff and without causing much dislocation and

disturbance to them. However, the organisational interest is given top

priority in this respect.

3.8 WAGES AND INCENTIVES

(i) Wages

Wage means the remuneration paid by the employer for the

services of hourly, daily, weekly and fortnightly employees.” It also

means that remuneration paid to production and maintenance or blue

collar employees.

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(ii) Salary

The term salary is defined as the remuneration paid to the

clerical and managerial personnel employed on monthly or annual

basis. In these days of human resources approach, the term wage

and/or salary can be defined as the direct remuneration paid to an

employee compensating his services to an organization.

Incentives are extra financial motivation. They are designed to

stimulate human effort by rewarding the person over and above the

time rated remuneration, for improvements in the present or targeted

results.

The term salary is usually defined to mean compensation to

office employees, foremen, and managers, professional and technical

staff. Salary is always based on time spent on job. The term

allowances include dearness allowance, house rent allowance and

other allowances paid in cash or in kind.

(iii) Pay

‘Pay’ means the basic pay drawn monthly by an employee in a

time scale of pay fixed to a post held by him. It may include Personal
pay, Grade pay, City Compensation Allowance and House Rent
Allowance. This has been shown in the Table No. 3.1, 3.2 and 3.3.

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 Table 3.1
Pay Band and Grade pay effective from 1.9.2010
S. Category Pay Band effective Grade
No. from 1.9.2010 Pay
1 Miscellaneous Level - I 4800 - 10000 1300
2 Conductor, Technical Level 1 1600
and Miscellaneous Level 2 5200-20200
Driver Level 1 1700
3 Administration Level 1 1800
Conductor, Technical Level 2
5200-20200
and Miscellaneous Level 3
Driver Level 2 1900
4 Administration Level 2 2000
Conductor, Technical Level 3
5200-20200
and Miscellaneous Level 3
Driver Level 3 2100
5 Conductor, Technical Level 4 2200
and Miscellaneous Level 5
5200-20200
Administration - Level 4 2250
Driver Level 4 2300
6 Administration - Level 4 2400
Conductor, Technical Level 6 5200-20200 2450
Driver Level 5 2500
7 Administration - Level 5 4200
Conductor, Technical Level 6 9300-34800 4200
Driver Level 6 4200
8 Administration - Level 6 9300-34800 4300
9 Supervisory 4400
9300-34800 4500
4600

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 Table 3.2
Rate of City Compensatory Allowance (Rupees per month)
S. Employees in the pay Chennai City and Cities of Coimbaotre,
No. range areas around the Maudrai, Salem,
city at a distance Tiruchiappalli and
not exceeding 32 Tiruvenveli areas around
kms. From the city them at a distance not
limits exceeding 16 kms from the
city limits
1 Below 8000 180 90

2 8001-12000 250 130

3 12001-16000 400 200

4 16001 and above 600 360

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 Table 3.3
Rates of House Rent Allowance
Pay Range Amounts of House Rent Allowance
Grade 1(a) Grade 1(b) Places in Places of Unclassified
Chennai City Cities of Grade II and Grade II Place
and places Coimbatore and places
around the Madurai and around 8 kms
city at a places around from town
distance not them at a limits
exceeding 32 distance not
kms from the exceeding 16
city limits kms from the
city limits
Rs. Rs. Rs. Rs. Rs. Rs.
1. 3440-5299 500 300 240 160 120

2. 5300-6699 560 400 300 200 140

3. 6700-8189 680 500 360 240 160

4. 8190-9299 800 600 440 300 180

5. 9300-10599 1000 720 540 380 200

6. 10600-11899 1200 840 640 460 220

7. 11900-13769 1400 960 760 560 240

8. 13770-14509 1500 1100 880 660 260

9. 14510-15999 1800 1240 1000 760 280

10. 16000-17299 2000 1380 1120 860 300

11. 17300-19529 2200 1480 1240 900 320

12. 19530-20089 2400 1600 1360 1000 340

13. 20090-21019 2600 1700 1400 1000 360

14. 21020-21579 2800 1800 1400 1000 380

15. 21580-22139 2900 1800 1400 1000 400

16. 22140-24999 3000 1800 1400 1000 400

17.25000 & above 3200 1000 1400 1000 400

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(iv) Dearness Allowance

D.A shall be paid at 45% of the Basic pay and Grade pay.

Whenever D.A shall be allowed to the Government employees, the

corporation employees shall be paid in the same rate.

(v) Grant of increment

An employee on a time scale of pay is ordinarily granted an

increment in the scale when he completed one year of service

counting for increment unless the increment is withheld as a measure

of punishment or for not passing prescribed test or for not acquiring

any special qualification as required for declaration of probation by

the competent authority. Annual increment occurring to a quarter shall

be advanced to the first day of the quarter in which the increment

occurs. A probationer with two years of probation is entitled to draw

the first increment after one year of service and the second increment

shall be granted with effect of the date of declaration of probations.

Annual increment to the employees shall be paid at 3% of the basic

pay and grade pay.

(vi) Terms of wage settlement

There terms of settlement include fixation of pay dearness

allowance, washing allowance, minimum assured increase in gross
emoluments, leave benefits, special pay etc, wage revision has been
agreed upon at the end of every three years. Settlement has been made
between State Government and representatives of recognized unions

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of transport workers at state level. Similarly the rate of bonus is
determined by bipartite negotiations (Government and unions) every
year.

3.9 PERFORMANCE APPRAISAL

Performance appraisal refers to all the formal procedures used

in working organisations to evaluate the personalities, contributions
and potentials of group members. Such appraisal should not be
confined to past performance alone. Potentials of the employee for
future performance must also be assessed.

In TNSTC to determine an employee’s worth for every year the

performance appraisal conducted by branch manager or sectional

officer or general manager. It is only useful for employee’s increment

and promotion.

(i) Objectives

 To determine qualification for the assignment of work

 To determine the promotional qualification

 To determine the employee’s ability

 To improve the employees’ skill

 To determine the misfit person

 To assist in the development of employees by finding out

their talents and weaknesses

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(ii) Contents

The employees’ behaviour traits are to be measured by

sectional officer and branch manager in the following contents.

1. Health and physical capacity

2. Job knowledge

3. Dependability

4. Initiative and quality of work

5. Relation with colleagues and supervisors

6. Sincerity and loyalty

7. Attendance and punctuality

8. Supervision and behaviour

9. Conduct and behaviour

10. Overall rating

(iii) Rating scale

The assessment content has following scales

 Very good
 Good
 Satisfactory
 Below satisfactory
 Below average
 Poor
Performance appraisal depends upon above items and scales
then only they evaluate the employees’ worth.

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(iv) Review for advancement to higher level scales

All employees below the rank of Superintendent, Junior

Engineer are eligible for review under logitivity pay scheme as per

wage settlement.

An employee in the working group or a miscellaneous group

shall be entitled (on the basis of review of performance by complete

authority) for advancement to higher level scale after completing 6

years, 7 years, 8 years, 8 years and 3years qualifying service at the

first level or second level or third level or fourth level and fifth level

as the case may be. During the first three reviews 5% review benefit

shall be paid and during the last two reviews 3% review benefit shall

be paid. The advancement to higher level is not automatic. It is based

on performance and other parameters prescribed by the Management

Appropriate committee of officers constituted for that purpose would

do the review.

3.10 WORKERS’ PARTICIPATION

The involvement of employees in the decision-making process

has been termed variously as industrial democracy or employees’
participation or participative management and workers’ participation
in management. Management is said to be participative if an
organisation gives scope to workers to influence its decision making
process on any level or sphere or if it shares with them some of its
managerial prerogatives.

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 Participation is nothing but mental and emotional involvement
of persons in-group situation that encourage them to contribute to
group goals and share responsibility for them. There are three
important ideas in this definition. First, and probably foremost,
participation means mental and emotional involvement rather than
more muscular activity. This involvement is psychological rather than
physical, as the person participated is “ego-involved” instead of
merely “task-involved”.

The second important idea in participation is that it motivates

people to contribute. They are given an opportunity to release their
own resources of initiative and creativity towards the attainment of
objectives of the organisation.

The third idea in participation is that it encourages people to

accept responsibility in their group activities. It is a social process by
which people become self-involved in an organisation and want to see
it works successfully. Participation helps them to become responsible
employee-citizens rather than non-responsible - machine-like -
performers.

(i) Participative forums in TNSTC Ltd.

a. Joint Committees
As per the participation of workers in Management Bill 1990,

the shop floor and establishments councils shall comprise equal

number of representatives of employer and workmen. Accordingly, in

TNSTC joint committees are composed of an equal number of

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employee’s and employees’ representatives. They are entrusted with

the responsibility of removing the causes of friction between workers

and management in the day-to-day life and work situations and

creating harmonious relations. The following bipartite committees are

functioning in TNSTC Ltd.:

i. Township Committee is formed for the purpose of

maintaining Dheeran Nagar Township. It comprises of 2

representatives of management and 2 representatives of workers.

ii. Staff benefit fund Committee is meant for helping the

employees who are suffering from chronic illness. One representative

each from workers and management constitute it.

iii. Death relief fund Committee is set-up for the purpose of

helping the families of deceased employees. Rs. 5 is collected from all

the employees and the total amount is paid to the dependents of the

deceased member. It comprises of one representative each from

management and employees.

iv. Safety Committee is established to safeguard employees

from sustaining injuries and to prevent other work-related accidents. It

has four members, two from workers and two from management.

b. Canteen Committee

The Canteen Committee is composed of 14 members elected

from among workers. The tenure of office of the members is 3 years.

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The management will nominate equal number (14) of representatives.

This committee is to settle the problems relating to running of

canteens.

c. Branch Council

There are 16 branch councils in the corporation out of which 8

are the town branch councils and the 8 remaining councils are

functioning outside the town. Each town branch council has 8

members from workers side. (ATP - 2; LPF - 2; CITU - 2; AITUC - 1;

and PS - 1). There are eight nominated management representatives.

(Total 16). There are 12 members in each rural branch councils - 6

worker representatives and 6 management representatives.

The members of Branch councils discuss the issues relating to

the following matters and arrive at solutions.

1. Review of utilisation of fuel 2. Review of cost

reduction 3. Operational problem 4. Controlling wastage 5. Errors

in documents 6. Economy 7.Improvements in performance

8.Absenteeism and 9. Work redesign.

d. Corporation Council

Corporation council has been constituted to discuss the matters

pertaining to the corporation as a whole. The corporation council was

first formed in the year 1985 and it has been functioning since then. It

consists of 16 members - 8 union representatives (ATP - 2; LPF - 2;

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CITU - 1; AITUC - 1; PS - 2) and 8 management representatives

nominated by the corporation.

The corporation council is concerned with following issues:

1. Setting up and review of operation targets. 2. Inter-branch

council problems that are represented to the corporation council for

solution. 3. Studying the pattern of absenteeism and evolving suitable

guidelines for reducing it. 4. Reviewing and updating of the working

of various participative committees and councils. 5. Preparation of

schemes for the development of skills of employees.

(ii) Holding of Meetings

The authorities of the corporation periodically convene the

meetings of workers participative forums depending upon the nature

and urgency of issues emerged.

3.11 GRIEVANCE HANDLING

(i) The concept of grievance

The International Labour Organisation defines a grievance as a

complaint of one or more workers in respect of wages, allowances,

conditions of work and interpretation of service stipulations, covering

such areas as overtime, leave, transfer, promotion, seniority, job

assignment and termination of service. Grievance is any

dissatisfaction that adversely affects organisational relations and

productivity.

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 Thus Grievance implies dissatisfaction or distress or suffering

or grief caused unnecessarily or illegally. In Human Resource

Management policies and practices, it is a complaint or representation

made in writing as regard to a company related matter arising from

employment or service conditions, or firm conditions involving unfair

treatment by the employers or from violation of any agreement or

standing instructions.

The Grievances of workers must carefully be dealt with and

they must be solved at the earliest occasions possible. It is advisable

that they should be resolved at their sources themselves and should

not only be simple but transparent in all stages; mutual faith and

confidence will be paramount in resolving the grievances.

(ii) Grievance Procedure in TNSTC Ltd.

Grievance will include complaints affecting individual

employees on payment of wages, leave, and transfer relating to policy

of managements or punishments under disciplinary rules. Matters of

policy covering general issue have to be taken by the Trade Union and

it will be outside the scope of grievance procedure. With the object of

providing the employees easy and readily accessible machinery for the

ventilation and prompt redressal of their day-to-day individual

grievances, an effective grievance procedure has been adopted in

TNSTC.

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a) First Stage

Grievance petition first state, in duplicate, is to be submitted to

the immediate superior or officer not below the rank of assistant

manager. He has to give his decision in writing within 5 days of the

receipt of the grievance.

b) Second Stage

If the officer either fails to give a decision or give decision not

agreeable to the aggrieved worker, then the grievance would be passed

on to the second stage. Grievance petition is to be submitted in

duplicate, to the officer-in-charge nominated by Managing Director

who may be general manager or manager personnel, through the

officer who gave the decision at the first stage. He is expected to give

a solution within 10 days. Whenever necessary, he can consult the

concerned specialist, department, officer, head of the department or

branch or unit concerned in order to settle the grievance at this level.

He may, in this case, take an additional period of 5 days.

c) Third Stage - Representation to Managing Director

If the officer-in-charge fails to give a decision within the

stipulated period or if the employee concerned is not satisfied with the
decision given by the officer-in-charge he may sent representation to
the Managing Director in the form prescribed, with all the facts he
may like to represent with a copy to the officer-in-charge who heard
him. The Managing Director shall call for the records relating to the

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first and second stage and carefully examine the grievance in
consultation with the concerned officers and if necessary, after giving
him personal hearing, give his final decision within 30 days from the
date of receipt or grievances.

(iii) Decision

All decision on grievance taken under the grievance procedure

should be in conformity within the rules, regulations and policies of
the corporation. The time limit allowed to the employee to represent
grievances from one stage to another is 10 days from the date of
receipt of decisions. The concerned employee’s absence to duty, as a
result of appearance in person before the authorities, shall be treated
as duty. No employee should be harassed or victimised for the
representation made. He shall not approach conciliation machinery or
any court till all the stages are exhausted and final decision
communicated to him. There shall not be stoppage of work until the
procedures have been fully gone through. Violation of the procedures
will make the employee to loose his rights under these rules.

(iv) Reviews

The General Manager / Personnel Manager shall review the

grievances that arose during every 6 months. The type of grievances
that arose and the decision taken thereon are also reviewed. Action
may be initiated on the basis of the review so as to prevent the
occurrence of such grievances in future.

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3.12 TRADE UNION

Minimum seven members is in group they authorized to form

an union. There are many unions are in TNSTC. These unions are

based on politics and non politics.

(i) Objectives

 To maintain the labour welfare

 To develop support between employer and employee

 To try to solve the employees’ problems.

(ii) Functioning of Trade Unions

The monthly subscription amount is decided by the union itself

and is maintained by the office bearers for the functioning and

programme expenses of the union (Rs.20). Sometimes, the

management itself collect subscription amount for certain union from

their salary and pay it to the union. The management gives more

importance to the recognized unions in case of decision making

process; where as the response to the unrecognized union will only

take into consideration if it is a genuine obligation.

The representative of all unions (including non-recognised) are

permitted to represent the labour problems and issues to the authorities

at Branch Level/Shop Level. However, only recognised unions are

authorised to represent the issues to authorities at Head Office level.

Similarly, they can only participate in the talks for wage settlement

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held once in 3 years at State level. The union leaders are elected from

among the workers. However, they have close rapport with leaders of

respective political parties. The unions are keen on maintaining

cordial relations with officers of the corporation so that they can find

out solutions to the problems of their members. Nevertheless, the

union affiliated to the ruling party enjoys much importance among the

officers of the corporations

(iii) TNSTC has following trade unions

1. AITUC – All India Trade Union Congress

2. INTUC – Indian National Trade Union Congress
3. TTSF – Tamilnadu Transport Staff Federation
4. HMS – Hindu Mazdoor Sabha
5. TMTUC – Tamil Manilam Trade Union Congress
6. MDMK – Marumalarchi Dravida Munnetra Kalagam
7. LPF – Labour Progressive Federation
8. ATP – Anna Tholizhalar Peravai - affiliated to ADMK
9. TamilNadu Periyar Labour Welfare Union
10. Dr.B.R.Ambedkar Trade Union
11. Tamilnadu Superiented Federation
12. Security General Trade Union
13. Tamilnadu Drivers Welfare Association
14. Tamilnadu Congress Association
15. TN Officers Association

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3.13 LABOUR WELFARE MEASURES

Welfare is a broad concept; it connotes a condition of well

being, happiness, satisfaction, conservation and development or

human resources.

‘Welfare’ is defined as, the voluntary efforts of the employer to

establish, with the existing industrial system, working and sometimes

living and cultural conditions of the employees beyond what is

required by law, the custom of industry and the condition of market.

Labour welfare work intends to inculcate a real change of

hearts and a change of outlook on the part of both the employers and

workers. The immediate need of the country is to increase the

production, this can be achieved only by keeping the workers

contented, and welfare activities can go a long way in this direction.

(i) Non - statutory welfare measures

The voluntary labour welfare measures (non-statutory labour

welfare measures) provided by TNSTC Limited, to the employees are

outlined in this section. Most of the non-statutory measures are

“Family and Community Oriented” rather than “Individual Oriented”.

They are:

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 Benefits under TNSTC Labour Welfare Fund

Trust.

 Service rendered by TNSTC Co-operative House

Building Society.

 Assistance by TNSTC Co-operative Thrift and

Credit Society.

 Service rendered through TNSTC Co-operative Stores.

 Medical Benefits.

 Free uniforms, shoes, sweaters and Mufflers.

 Free pass facilities.

 Educational facilities to the employees and their children

through Labour Welfare Fund Trust of TNSTC Ltd.

 Marriage Advance.

 Funeral Expenses.

 Incentives and Awards.

 Library and reading room facilities.

 Home Magazine.

 Fairs and Festivals.

 Recreation facilities.

 Programme for the development of Mental Health.

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Important welfare measures are narrated below:

(ii) Medical Benefits

For the benefit of those workers not covered under Employees

State Insurance Scheme the following medical facilities are provided:

“In-patient” treatments are given to the employees who are regularised

prior to 1.7.79 and their dependants in the authorised nursing homes

free of cost. The entire expenses will be borne by the management on

reimbursement basis. The employees regularised on or after 1.7.79,

can get all types of medical treatment in Government Hospitals on

production of Medical Identity Card. These facilities are also extended

to the dependents of the employees. Apart from these facilities, special

medical leave with half pay is made available to the employees who

are affected contagious diseases like cancer, tuberculosis etc., subject

to a maximum period of 12 months during the entire service of

workers.

(iii) Accident-Free Award for Drivers

It has been learnt from the available information that during the

year 2007 - 2008, 531 licenses were suspended permanently and 9165

licenses were suspended temporarily as the result of accidents leading

to death of victim. In order to save the precious life of the people and

to motivate the drivers to be careful with their job, the Corporation has

instituted an award.

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(iv) New Medical Insurance Scheme

The health of employees is an asset to any organisation. In

order to protect the health and well being of the employees of the

corporation, the Government of Tamil Nadu has started a new

Medical Insurance Scheme in association with Star Health Insurance

Company (P) Limited. As per the provisions of the scheme, a sum of

Rs 25/- will be deducted every month from the salary of the

employees. The management of the Corporation will contribute a sum

of Rs.195/- per year along with a sum of Rs. 62/- towards service

charge. An employee is eligible to receive medical treatment upto

Rs.2 lakh within a period of 4 years and such a facility can also be

enjoyed by the children and the wife of the employee.

(v) Free Pass Facility

a) Duty Pass

Free duty passes are issued by the corporation to all the

employees to travel in the city buses from their residence to the work

place and vice-versa, subject to a maximum travel distance.

b) Family Pass

Sixteen single-family passes (or up to 4,500 kms) are issued per

annum by the corporation to the employees travel with their families.

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c) Children Pass

Children of employees studying in colleges and schools shall be

eligible for free travel concessions in an academic year, subject to the

following conditions:

 Four free bus passes (eight single journeys) between the

places of residence and college per child pursuing degree

courses in Engineering, Medicine including Dental and

Pharmacy, Veterinary, Agriculture or Law staying in the

hostel

 Two free bus passes (four single journeys) between the

places of residence and the college per child pursuing

courses in Polytechnics or Arts and Science Colleges.

 In respect of the children of the employees who die in

harness, free bus pass facilities subject to the conditions in

(a) or (b), as the case may be, shall be extended till such

children complete their education.

 In respect of other students who may be pursuing courses in

schools or colleges as regular day scholars, free bus passes

shall be issued by the respective Corporation valid for one

year in 12 cards of different colours as practiced in PTC.

 Whatever be the course studied, whether hosteler or day

scholar, at a time, only two children of an employee shall be

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 eligible for such facilities under clauses (a), (b) (c) and (d)

put together

 For the purposes of eligibility for two passes, such of those

children of the employees studying 8th standard and below

shall not be counted.

 If the bus pass issued is lost, the same will not be replaced

by the Corporation.

(vi) Hiring of Buses

Employees in the Transport Corporations may be allowed to

hire once a year at the rate of 2 buses for every 500 buses held in the

Corporation, for not more than three days to go on excursion visits at

25% concession of the normal hire charges. This will be availed on

the first come first served basis.

(vii) Holiday Homes

Holiday homes have been established at Ooty, Kodaikanal and

Kutralam and Kanyakumari. To facilitate employees’ families to stay

together during such holiday trips, one or two family rooms may be

constructed in such places.

(viii) Bus Passes for Central Trade Union Office Bearers

Each Corporation shall provide two annually renewable non

transferable photo (to be supplied by the concerned) affixed bus

passes to two such persons nominated by each Federation of Central

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Trade Unions being the office bearers of Trade Union/s functioning in

the concerned Corporation affiliated to such Federation to enable them

to travel free of cost within the jurisdiction of such Corporation and to

travel up to Madras and back only by the buses operated by such

Corporation.

(ix) New Schemes

The tripartite settlement in 1998 has provided for new schemes

for the workers, which were not existed prior to this settlement.

Line sick or line message

On humanitarian grounds, duty off on account of line sick or

line message may be allowed to drivers and conductors on duty 4

times in a year, each time for half-a-day if such person had performed

duty for more than 2 hours but less than 4 hours or twice a year for 1

full day if he had performed duty for more than 4 hours but less than 8

hours. Having availed of half-a-day off, such person fails to perform

the other half duty such absence will be adjusted against his leave

account. Where full day off is granted after a person has worked for

more than 4 hours but less than 8 hours he would be granted

attendance for the full day.

(x) Compensatory off

A driver or a conductor or a technical worker who stays beyond

his regular shift duty hours on account of an accident or breakdown,

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one day compensatory off shall be given if such over stay beyond his

shift duty hour is more than 4 hours but less than 8 hours and half-a-

day compensatory off if such over stay is for 4 hours and less. If the

over stay is more than 8 hours, for every block of such 4 hours half-a-

day compensatory off shall be given in addition.

(xi) Educational assistance

In respect of an employee whose child is studying in the I Std.

to +2 class, a sum of Rs.150 per year shall be granted as education

assistance for purchase of books etc. subject to the conditions that

such employee shall be in the miscellaneous or working group or a

supervisor whose annual family income does not exceed Rs.40,000

and that such assistance shall be restricted to two children at a time,

upon satisfactory proof.

(xii) Scholarships

An annual scholarship amount up to Rs.1500 may be granted

to an employee whose son or daughter is pursuing professional

courses in Medicine including Dental and Pharmacy, Veterinary,

Engineering, Agriculture or Law as a regular student subject to the

following conditions:

a) Such employee should be in the miscellaneous or working

group or a supervisor whose annual family income does

not exceed Rs.40,000

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 b) Only one child of an employee is eligible at a time

c) The amount equal to the actual tuition fee paid will be

reimbursed subject to production of the cash receipt in

original

d) The student should have passed the previous semester or

annual examination, as the case may be. In the event of the

student failing in any of the subjects, until such student

completes all the subjects prescribed for a semester or

annual examination, the scholarship will not be renewed.

That is, only when a student passes the subjects prescribed

for a semester or annual examination in the first attempt,

such reimbursement will be made for such semester or

academic year.

(xiii) Educational Advance

A sum of Rs.750 shall be paid as education advance during

May every year to every such employee whose own children are

studying in schools or colleges subject to production of proof. This

advance shall be recovered in ten equal monthly installments

commencing from the salary payable for the month of May.

(xiv) Marriage Loan

Marriage loan in respect of a male employee or son of an

employee on permanent rolls of the Corporation shall be paid

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Rs.20000 and in respect of a female employee or daughter of an

employee on permanents rolls shall be paid Rs.30000 subject to the

following conditions:

(a) Marriage loans will be granted only for the marriages of

a permanent employee and his own two children.

(b) Normally when one marriage loan is outstanding,

another loan shall not be granted. However the second

loan may be granted even when the first loan is

outstanding after adjusting the outstanding amount of the

first loan together with the interest thereon in full. Such

person shall be deemed to have exhausted two

opportunities.

(c) In order to help the employee in time by providing the

marriage loan, the concerned should submit his

application along with the marriage invitation to the

Management at least 30 days in advance. However

applications received after the celebration of the marriage

will not be accepted.

(d) Marriage loan shall carry an annual interest of 12% and

shall be repayable in 30 equal monthly installments

commencing from the month following the grant of the

loan.

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 (e) As and when the Government of Tamil Nadu changes the

rate of interest and the number of installments governing

the marriage loan, such changes shall be operative in the

STUs also under intimation to the Trade Union

Federations.

(f) Where the marriage is not Celebrated for which purpose

the loan is granted within one month of the notified date

of such marriage, the entire loan amount together with

interest at the rate of 22% or the rate at which the

Corporation borrows money from the bank for working

capital shall be recovered from the salary of the con-

cerned apart from taking disciplinary action for obtaining

loan on false grounds.

(g) Granting of the marriage loan shall be without prejudice

to the employee availing loan from his own PF

contributions as may be permissible under PF Trust rules.

(xv) Library

The TNSTC Limited has got a library. It has books on physical

sciences and social sciences for reference only. Dailies and periodicals

both in English and Tamil are also made available. It is located at the

Head Office of TNSTC Ltd.

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(xvi) Statutory Welfare Measures

As per the provisions of the Factories Act 1948, the corporation

is bound to provide the following welfare facilities: 1. Washing
facilities 2. Facilities for drying and storing of clothes 3. Facilities for
sitting 4. Canteen facility 5. Rest rooms, lunch rooms etc 6. Provision
of creches 7. Appointment of welfare officers 8. Facilities as per the
rules made by the State Government.

(a) Statutory Health and Safety Measures

Similarly, the corporation has to comply with the provisions of

the Factories Act 1948 in respect of health and safety amenities.
Important among them, are mentioned below: 1. Cleanliness
2.disposal of waste 3. control of dust and fume 4. proper ventilation
and temperature 5. proper lighting 6. provision of drinking water
7.provision of latrines and urinals 8. spittoons 9. fencing of machinery
10. lifting machines, cranes chains etc. 11. protection of eyes
12.precautions in case of fire accidents 13. proper maintenance of
vehicles, building etc. 14. appointment of safety officers. These
facilities and safeguards are provided for the benefit of workers in
TNSTC Ltd.

3.14 MOTIVATION

Motivation refers to the schemes instituted for stimulating the

workers to work with full ability and skill and inculcating in them
goal-directed behaviours. It may, either, be monetary or non-monetary
in nature.
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I. Monetary Motivation

(i) Steering Allowance

Every permanent driver employed in TNSTC shall be paid

Steering Allowance as per the table no. 3.4, subject to the following

conditions:

a) steering allowance is payable only to those drivers who

actually drive buses on routes;

b) The prescribed Steering Allowance shall be paid per shift

duty only upon completion of the schedule in full without
any loss of trip or KM.

c) Non completion of the schedule due to accident or natural

calamities or where the management curtails a service
schedule for whatever reason, such curtailed schedule will
be deemed to be the schedule for such day or days and
accordingly the applicable steering allowance for such
revised schedule will be allowed to the concerned drivers,
In no case, the steering allowance be payable pro-rata; and

d) In respect of such services which are operated for full 4

hours between midnight and 4.00 a.m., the drivers of such
services shall be eligible for Steering Allowance at double
the rates mentioned below.

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 Table No. 3.4
Steering Allowance
S. No. Steering Allowance Distance Amount
1 Town Buses Upto 150 kms 5.00
151 to 170 kms 5.50
171 to 180 kms 6.00
Over 180 kms 6.50
2 Mofussil Buses Upto 175 kms 5.25
176 to 200 kms 5.75
201 to 225 kms 6.25
226 to 250 kms 7.00
Over 250 kms 8.00
3 Hill Station Buses Upto 50 kms 5.25
51 to 75 kms 5.75
76 to 100 kms 6.25
101 to 125 kms 7.00
Over 125 kms 8.00

(ii) Shift Duty Allowance

A sum of Rs. 5/- shall be paid in respect of every permanent

employee including supervisors excepting drivers, conductors and

technical workers who performs duty in rotation in shifts. Such of

those persons who work in general shift or work continuously in the

morning shift like 6-1 or 7 -3 will not be eligible for this amount. Only

such of those persons who work in shifts like 6-2. 2-10 and 10 - 6 or

6- 2 arid 2- 10 or 7- 3, and 3 - 11. shall be eligible for this benefit.

Traffic supervisors performing split duties such as 4-8 and 12- 4 shall

also be eligible.

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(iii) Night Duty Allowance

Payment of Night Duty Allowance shall be increased from

Rs.11/- to Rs. 15/- per night shift duty to a worker who performs night

duty of not less than 8 hours between 7.00 P.M. and 7.00 A.M. The

above allowance shall be in addition to the existing facilities like

supply of bun/bread and tea, as the case may be.

In respect of line checking staff that perform night duty of not

less than 8 hours between 7 p.m. and 7 a.m. on line. The Night Duty

Allowance will be paid at the rate of Rs.11.50 to 15.50 per night,

effective from 2010.

(iv) Night Halt Allowance

Where an employee has to stay overnight at a place other than

his base or assigned Depot, from 2010, the Night Halt Allowance per

head per night shall be paid:

Over night stay Rest room Rest room not

provided provided
(Rs.) (Rs.)
Within Tamilnadu & Pondicherry 15.00 16.00

Outside Tamilnadu & Pondicherry 16.50 17.50

Hill station 11.50 17.50

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(v) Stitching Allowance

It has been learnt from the documents available that the

stitching allowance for drivers and conductors is Rs.180 and Rs.200

per pair of dress.

1. For male workers

i. increased from Rs.160 to Rs.180 per pair

ii. increased from Rs.180 to Rs.200 per pair

2. For female workers

i. increased from Rs.100 to Rs.150

(vi) Funeral Expenses

As a measure of immediate assistance, the under mentioned

non-recoverable grant shall be made by the Corporation to the legal

heirs of the employee or the employee as the case may be:

(a) Death of an employee : Rs.2000

(b) Death of a family member: Rs.500

The family member would include wife/husband, unmarried

children, father, mother and widowed daughter solely dependant on

the employee.

When an employee dies in harness, as a measure of immediate

assistance to the family of the deceased employee, a sum of Rs.5000/-

shall be paid as an advance. This advance of Rs.5000/- shall be

recovered from the Family Benefit Fund amount of Rs.1,50,000/-

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payable to the legal heirs of such employee. Rs.30/- deducted per

month from the salary of each employee towards Family Benefit

Fund.

(vii) Legal Expenses

A sum, subject to the maximum of Rs.700/- is being reimbursed

towards legal expenses for drivers who are involved in accidents while

on duty.

(viii) Innovation award

A technical staff who invents new techniques or designs or new

systems are complimented with cash prizes, depending upon the

nature of the innovation.

(ix) Award for not-availing any leave

The corporation also implements a scheme to award for those

staff who have not availed the leave (in a year) facilities to which they

are entitled. Such workers are awarded with a cash prize of Rs.50/-.

(x) Meritorious service award

Meritorious service awards are given to the employees who

have rendered brave and timely services to safeguard the interest of

public and the corporation.

(xi) Award for safe-driving

The corporation gives accident-free-awards to the drivers. The

amount of award differs depending upon the number of consecutive

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accident-free-years, i.e. first accident-free-year award Rs.250; second

consecutive year Rs.275 third consecutive year Rs.300/ fourth

consecutive year Rs.325/- and fifth consecutive accident-free- year Rs.

350/- After 5 years Rs.150 for each year.

(xii) Advance increments

Employees holding posts in the Administrative, Traffic and

Technical department are granted advance increments for acquiring

additional qualifications, while in service. For instance, two advance

increments are to be granted for acquiring a degree in law and masters

degree in arts, science, commerce, engineering etc.

(xiii) Hill Station Allowance

Every employee working in the hill stations shall be paid 10%

of the basic pay as Hill Station Allowance.

(xiv) Washing Allowance

Every employee shall be paid Rs.80 per month as Washing

Allowance.

II. Motivation (Non-Monetary)

The following non-monetary motivation schemes are provided

in TNSTC Ltd.

a. Home Magazine

A committee constituted by the employees publishes a home

magazine ‘TNSTC’ periodically. This magazine plays a vital role in

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bringing out the various skills of its employees in the areas of

literature, science and allied subjects. It helps each employee to

understand what is going on in his organisation.

b. Festivals and games

In order to create a sense of belongingness and togetherness,

some festivals are celebrated, namely TNSTC Day, Pongal Day,

Ayudha Pooja, Independence Day and Republic Day. On the eve of

these functions, the employees are encouraged to participate with their

family. It gives an opportunity to employees to have contacts and

interactions with other employees and their family members. Sports

and games are also conducted to enable the employees and their

family members to display and improve their skills. At the end of

these events, the “TNSTC Orchestra” which is one of the best in

Tamil Nadu will entertain them. “TNSTC Drama” which has won

many competitive awards is also played.

c. Recreation facilities

To enhance the morale of the employees, the following

recreation facilities are made available:

1. Indoor games such as carom, chess, table tennis and

shuttlecock; 2. Outdoor games such as volleyball, ball badminton and

gymnasium; 3. TV and radio at Dheeran Nagar Colony.

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 These facilities help the employees to spend their leisure time

usefully. They facilitate the workers to relieve their physical and

mental strain and fatigue arising out of their employment.

d. Programme for the Development of Mental Health:

Mental health and hygiene of employees play significant role in

attaining success of the organisation. Keeping this in view, the

corporation is conducting regular courses for the benefit of its

employees with the help of professionals. The course comprises of

mental sciences, transactional analysis and yoga practices. Special

attention is given to the employees who are having the following

problems:

1. Marital disharmony

2. Alcoholic addiction

3. Maladjustment problem in the office and

4. Habitual absenteeism

3.15 DISCIPLINARY ACTION AND CONDUCT RULES

(i) Discipline
Discipline is manifested by orderly behaviour of the employees.

Orderly behaviour is possible when the employees follow the rules

and regulations laid down by the companies. When they violate the

rules, there arises indiscipline. Thus, when an employer is dissatisfied

with the behaviour of an employee, disciplinary action is initiated to

correct the situation.19 The Conduct Rules of the Corporation apply to

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the employees of corporation except to those employees to whom a

contract or agreement is subsisting between them and the corporation.

Some of the provisions of the conduct rules are given below:

Every employee shall maintain absolute integrity and devotion

to duty and should act to the best interest of the corporation and serve

honestly, loyally and faithfully. He shall comply with the provisions

of all rules and regulations and should not evade responsibility. Every

employee should take leave of absence with prior permission of the

competent authority and should take permission to leave head

quarters. He should not influence superiors to further his own interest.

No employee should criticize or utter opinion on the policy or

action of the corporation or of Government of the State and the

Centre. He should not participate in any gathering, which may criticise

the Government or Corporation. Every employee should maintain

strict secrecy regarding the corporation’s affairs.

The Rules prohibit giving evidence in enquiry conducted by a

person or committee without prior permission of competent authority.

No employee should use his official position to secure jobs in

private firms for his relatives.

The rules further enumerate acts of omission and commission

amounting to misconduct. For example, abusing or misusing of

corporation property alone and in combination with others, un-

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authorised use of vehicle, negligence or carelessness in duty; Failure

to effectively supervise the work of subordinates, insubordination,

theft, fraud, dishonestly, misappropriation with the business of the

corporation, illegal strike, sabotage, moral turpitude, breach of

circulars or rules, disorderly behaviour, damage to property of the

corporation, threatening, assaulting an employee outside in connection

with employment in the corporation, tantamount to misconduct and

disciplinary action can be taken against such acts.

(ii) Disciplinary Procedure in TNSTC

The management has the right to take disciplinary actions after

proper enquiry. Sufficient opportunities are given to alleged workers

for defending their interest. The disciplinary procedure adopted in

TNSTC Ltd. is reasonable, logical and systematic.

TNSTC has provided certain rules and regulations. Those who

violate these rules and regulations will be punished. The punishment

differs according to the nature of offence. There are two types of

offences; major offence and minor offence.

(iii) Major Offence

 Fatal accident

 Major damage

 Fair not received ticket issued

 Reissue – old tickets are reissued

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  Sleeping on the duty

 Drug affected misbehaviour

 Want of diesel.

(a) Action
In above cases suspension of the offended employee for 1 week

or 10 days will be done. During this period the subsidiary wage will

be given to them. General Manager is empowered to suspend the

offended employee.

(b) Domestic Enquiry

During the suspended period within 7 days the memo should be

issued to the employee to appear for an enquiry. The offended

employee should appear before the enquiry officers in time. Incase the

offence was proved, the employee get punishment as a cut in

increment for 3 years. After the suspension, the fatal offence

employee will have a training class for 3 days or 7 days and so on.

(iv) Minor offence

 Lack of Maintenance
 Checking Inspector’s report (not picking up of passengers,
not in proper time)
 Minor accident (damage below Rs.10,000)
 Minor injury, shortage of first aid kit
 Earning - ticket not issued (EPKM)
 Ticket book missing
 Absenteeism

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(a) Domestic Enquiry

The memo should be send to offended employee, after getting

the memo the employee compulsorily attend the enquiry. After the

enquiry the final result will be announced by the enquiry officer, if it

was proved the employee will be given punishment as per rules and he

has to attend the counseling class for 2 days and so on. After the

punishment period the employee has to produce fitness certificate

before joining the regular work.

(b) Types of punishment

1. Termination – This will happen only in the case of Major

offence. This decision will be taken only in the final stage.

The General Manager is empowered to take such decision at

the extreme stage.

2. Medical Discharge – The offended employee after the

punishment has to produce the fitness certificate. Those who

failed to produce such certificate or an employee with

prolonged illness may also be terminated. This will be

decided by the General Manager.

3. Increment cut with cumulative effect – According to the

nature of the offence, the General Manager may issue order

to cut the increment of the employee with cumulative effect.

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 Cumulative effect means, every year in the particular month

the increment will be cut up to the punishment year.

4. Increment cut – A cut in increment for a particular period

only.

5. Fine

6. Recovery (according to the cost of damage)

7. Severe warning

8. Warning

9. Suspension period – the employee will have a specific

punishment as half pay.

10. Advice

11. Censure – for administrative staff only

12. Action dropped – The file will be closed without any action.

13. Daily wages period will be extended

14. Action dropped without charge memo

15. Pay reduction – a cut in increment

3.16 SUMMING UP

This chapter brings out the significance, role, objectives,

junctions of human resource management practices adopted by the

management of TNSTC Ltd have been elaborated with a view to

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highlight the existing aspects of human resource management

practices. The practices relating to recruitment and selection process,

training and development methods, promotion and transfer

procedures, wage and salary administration, methods of monetary

motivation, schemes of non-monetary motivation, performance

evaluation, workers’ participation methods, trade union activities,

grievance handling and code of discipline have been highlighted. This

is done as a preclude to, especially, IV chapter where the opinions of

workers on these human resource management practices are stated and

analysed.

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