...Agenda for Action N. Ravichandran1 and M.V.N. Surya Prasad2 Abstract In this article, we examine in detail the reasons related to the declining operating and financial performance of Gujarat State Road Transport Corporation (GSRTC). The contribution of various environmental and governance issues related to the decline of GSRTC are identified. Based on the diagnosis, a detailed revival plan consisting of a set of actions to be undertaken by the management is proposed. The responsibilities of the government, the management, and the employees in implementing the revival plan are briefly discussed. This article concludes with set of strategic priorities that need to be examined by government in reviving GSTRC and other similar state-owned public utilities. 1 2 Faculty, Indian Institute of Management, Ahmedabad PGP (2004-2006), Indian Institute of Management, Ahmedabad W.P. No. 2007-03-05 Page No. 2 IIMA INDIA Research and Publications Introduction Gujarat State Road Transport Corporation (GSRTC) was formed in 1960 as an off-shoot of Bombay State Road Transport Corporation, with a purpose of providing an efficient transport facility to the travelling public of Gujarat state. Over a period of 45 years of its existence, GSRTC has recorded phenomenal growth on every physical...
Words: 5336 - Pages: 22
...India. Gujarat State Road Transport Corporation (GSRTC) was formed on 1st May 1960. Currently its headed by Mr. Mukesh Puri. It has nearly 230 bus stops, with three level maintence plants,7 tyre rethreading plants. It has inducted 8341 fleet of buses in past six years and plans to have nearly 10000 buses by the end of 2015-2016. It provides employment to up to 50000 and helps create indirect job opportunities to the citizens of Gujarat. Issues: • GSRTC`s association with the Government of Gujarat whose policies, rules and regulations which tend to prioritize on compliance rather than performance. • Prices required Government approval. • Lowered efficiency and increased costs per bus due to procurement of poor quality spare parts hence led to increased usage of older inefficient buses with high maintenance cost. • Compliance to adhere with Indian Government rules to reduce greenhouse gas emissions by operating CNG buses. CNG tend to be expensive. • Permission of private enterprises in the road transport sector cannibalized the sales of GSRTC. Since private players operated only on lucrative routes whereas GSRTC had to also operate in lean routes. • Contract carriage operators like jeeps, maxi cabs etc who also started operating in profitable routes of GSRTC which led to decline in passengers traveling by bus and hence loss in passenger revenue. • Passengers prefer price to safety. • High P-tax payed by GSRTC to GoG. Rs.4.99 Lakhs per bus payed to the government...
Words: 917 - Pages: 4
...Agenda for Action N. Ravichandran1 and M.V.N. Surya Prasad2 Abstract In this article, we examine in detail the reasons related to the declining operating and financial performance of Gujarat State Road Transport Corporation (GSRTC). The contribution of various environmental and governance issues related to the decline of GSRTC are identified. Based on the diagnosis, a detailed revival plan consisting of a set of actions to be undertaken by the management is proposed. The responsibilities of the government, the management, and the employees in implementing the revival plan are briefly discussed. This article concludes with set of strategic priorities that need to be examined by government in reviving GSTRC and other similar state-owned public utilities. 1 2 Faculty, Indian Institute of Management, Ahmedabad PGP (2004-2006), Indian Institute of Management, Ahmedabad W.P. No. 2007-03-05 Page No. 2 IIMA INDIA Research and Publications Introduction Gujarat State Road Transport Corporation (GSRTC) was formed in 1960 as an off-shoot of Bombay State Road Transport Corporation, with a purpose of providing an efficient transport facility to the travelling public of Gujarat state. Over a period of 45 years of its existence, GSRTC has recorded phenomenal growth on every physical...
Words: 5336 - Pages: 22
...request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, Richard Ivey School of Business Foundation Version: 2012-01-26 “All our efforts, exercises and future projections, so far, have come to not. We have to think it all over again. This new wage demand is a coup de grace for the corporation. I do not intend to preside over its demise.” - Rajgopal Raj Gopal (Rajgopal), IAS,1 the vice-chairman and managing director of Gujarat State Road Transport Corporation2 (GSRTC), was leaving the Sachivalaya3 at Gandhinagar. In a rare display of solidarity, all of the registered trade unions (TU) of GSRTC gave a call for strike on August 23, 2010. For about two years, the unions were demanding wages as per the 6th Pay Commission,4 implemented by the Government of India in 2006. The recommendations of the commission were subsequently adopted by all state governments and the majority of state-owned enterprises. Time-consuming wage negotiations began between the management and TUs but yielded no results. The...
Words: 8188 - Pages: 33
...reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, Richard Ivey School of Business Foundation Version: 2012-01-26 “All our efforts, exercises and future projections, so far, have come to not. We have to think it all over again. This new wage demand is a coup de grace for the corporation. I do not intend to preside over its demise.” - Rajgopal Raj Gopal (Rajgopal), IAS, 1 the vice-chairman and managing director of Gujarat State Road Transport Corporation 2 (GSRTC), was leaving the Sachivalaya 3 at Gandhinagar. In a rare display of solidarity, all of the registered trade unions (TU) of GSRTC gave a call for strike on August 23, 2010. For about two years, the unions were demanding wages as per the 6th Pay Commission, 4 implemented by the Government of India in 2006. The recommendations of the commission were subsequently adopted by all state governments and the majority of state-owned enterprises. Time-consuming wage negotiations began between the management and...
Words: 538 - Pages: 3
...9 Recommendations based on failed changes in Table 2: Change Model: Page 10 GSRTC and Kotter Page 11 Managing future change at GSRTC. Recommendations Page 12 Steps to Change: Page 13 Conclusion Page 14 References Introduction: This paper will reflect on the number of changes that Gujarat State Road Transport Corporation went through in response to two events, (1) Government of Gujarat to allowing competition (2) Paying back several years of unpaid wages to employees. These events would cripple Gujarat State Road Transport Corporation if it was not for dynamic changes. The changes that took place after these events proved to be unwelcomed by the employees resulting in a strike, again, impacting Gujarat State Road Transport Corporation. By reviewing this case and analysing change modelling literature, this paper discusses the implementation of Kotter’s eight step change model to assist in the success of managing change. In addition to Kotter’s linear model, Senge’s fifth discipline is suggested to assist build the foundations for a learning organisation. Combining a change model and a holistic learning organisation the rate of success will increase if managed and lead correctly. The success should be measurable in this case a lot of the changes are financially measured and can be recorded and monitored. Situation: Gujarat State Road Transport Corporation (GSRTC) was formed in 1960 as an off-shoot of...
Words: 3398 - Pages: 14
