Wednesday, March 13, 2019

Is Legalized Corruption really Corruption?

A recent article posted on my B-School group, and a 45 minutes cab ride to a meeting gave me a new insight to the progressive thinking around corruption demonstrated by Govt personnel departments.    

Most of us agree that Govt employees are not the best paid  - in fact, their emoluments are fairly low, and most of them struggle to meet their personal and family aspirations: good education for kids, a car, a (sometimes international) holiday, etc.  

On the other hand, they also do not (in most cases) provide the best of services to us citizens - primarily because there is no real motivation to do so.

TN Govt staff can now accept gifts upto 25k INR



This really forward thinking and progressive initiative by the Tamil Nadu (TN) Govt may actually create an environment of happy motivated employees!!! And a model that could well be adopted by other state and global Govts, and possibly have the TN Govt be soon at Harvard presenting a case study!!  

How you may ask?

Creating a performance linked incentive structure, funded by the citizens: Look at how restaurants staff compensation is modeled - salaries are kept low, but they are free to keep the tips earned (which are linked to how happy the customer feels by the services rendered).  An immediate parallel comes to mind - the employees can now receive INR 25k, with upto INR 10L or 50% of gross annual emoluments.  My only suggestion is that the higher the level, the higher the permissible limit - maybe in crores for the senior most employees.  

Reducing administrative hassles and costs: Imagine the hassle and costs of investigating a violation at INR 5000.  It may not be worth the time of the senior investigating officer.  And the more senior the person under investigation, the more senior the investigating officer (linked to the previous point - keep the limits higher up the hierarchy). 

Why stop here? Thinking of how this can transform the future Compensation & Benefits of Govt employees.

Reducing salary burden on the exchequer: Increments can very well be done away with - instead, every year increase the permissible limits by twice the planned increments. That way, there is no need to increase the salaries to be paid year on year.

Reducing direct taxes on the citizens: This also helps us as citizens - since the salary payout will go down, it could very well result in some reduction on the taxes we pay.  And the gifts we give are purely linked to the quality of services rendered.

Helping attract talent from other states:  In the current environment, across the country, the Govt is finding it increasingly difficult to get the best people.  I believe there may have been a challenge on filling in posts, and this measure is sure to get employees of other state govts make a beeline for Tamil Nadu.

I am happy to hear your take on how else this can evolve!! :) 









Labels:

1 Comments:

Blogger Konark said...

Will they still serve those who have no money to pay them gifts? I think this will only encorage them to work for only those who can pay them official bribe. This should be stoped.

12:10 AM  

Post a Comment

<< Home