Staff Productivity as a Strategic Driver of Financial Viability in State Road Transport Undertakings
Author(s): Dr. D. Anjaneyulu
Publication #: 2610012
Date of Publication: 09.03.2016
Country: India
Pages: 1-7
Published In: Volume 2 Issue 2 March-2016
Abstract
State Road Transport Undertakings (SRTUs) play an important role in providing affordable and accessible passenger transport services in India. However, their financial sustainability has historically been affected by high operating costs, personnel expenditure, fuel costs, social-service obligations and operational inefficiencies. In this context, staff productivity assumes considerable importance because manpower is one of the major components of the cost structure of SRTUs. The present study examines staff productivity as a strategic driver of financial viability in State Road Transport Undertakings, with the study restricted to information available up to 31 March 2012. The study is based on secondary data obtained mainly from the Ministry of Road Transport & Highways and research studies available up to 2012. Staff productivity is assessed through revenue-earning kilometres performed per worker per day, while financial viability is examined using revenue, total cost, profit/loss and major cost components. The study finds that average staff productivity increased marginally from 56.0 km per staff per day in 2010–11 to 56.5 km in 2011–12. However, the aggregate financial position remained weak, as total cost increased by 12.9%, compared with a 12.8% increase in revenue, and the aggregate loss increased from ₹5,898.98 crore to ₹6,588.15 crore. Staff cost represented 39.6% of total cost in 2011–12. The study concludes that improvement in staff productivity can contribute to financial viability through better manpower utilisation, higher operational output and improved cost efficiency, but it needs to be supported by improvements in fleet utilisation, revenue generation, fuel efficiency and overall cost management.
Keywords: Staff Productivity, Financial Viability, State Road Transport Undertakings, Manpower Productivity, Operating Cost, Public Transport, SRTUs
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