Case Study 8

Organizational Discipline A Goal or a Means?

Presented By: Sunaina Mahajan

Introduction to the Case

Company Name: Raja Narendra State Road Transport Corporation Case about: the suspension order of a bus conductor Scheme: A new incentive scheme was introduced by the corporation in 1981 that the bus crew would get the incentive bonus if the income of a bus during a particular route crosses the standard amount. Before introducing the scheme: The bus crew did not allow the passengers over and above the seating capacity. After introducing the Scheme: The corporation allowed the bus crew to overload the bus.

Bus Route: Rajahmundry to Vangalapudi Problem occurred on: July 13, 1987 Problem was: the conductor issued tickets and requested the passengers to buy tickets several times. He felt that all the passengers had bought the tickets and he completed his job. But when the ticket checking staff started checking the tickets in Sitanagaram, they found that an old lady (sitting near the door in a corner of the bus) did not buy the ticket. What happens then: The staff collected penalty from her and issued a ticket. On other side they issued a suspension order to the conductor.

How Conductor react: The conductor informed the trade union leaders at Rajahmundry about his suspension on phone. Reaction of Trade Union leaders: The trade union leaders met the Depot Manager, explained him the incident, and requested him to withdraw the suspension order. But the request was refused by Depot Manager. The TU Leaders announced a WILDCAT STRIKE. It was continued up to 1 week. Effect of Strike: The traffic was affected badly. The loss of income was around 1 Lakh per day. Result: The suspension order was withdraw on July 21, 1987.

Question Arises:
Q1: Did the new scheme cause stress on the conductors and drivers? Q2: Was it good to give the order of overloading the bus just for seeking the mean of earning profits? Q3: Did the decision of ticket checking Staff of issuing the suspension order for a small mistake of conductor was correct?