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Transport industry is highly labor intensive. The success and failure of an enterprise largely depends upon the people who man the organization. The importance of people in an organization as a source of productivity was by and large ignored. But now, human resource plays a significant role in organizations. Accordingly, the present day transport industry is characterized by the employment of sophisticated technology and a great deal of reliance on human resources. The investment streams are directed in a logical proportion towards both technology and human resources. Sophistication in physical resources alone is meaningless if the competence of human resources is not increased to a desirable extent. The achievement of organizational goals is the result of interaction between physical resources and human resources. Without human resources, nothing can be achieved. Each and every activity calls for the interaction of human force, but the productivity of that factor alone in isolation in total productivity cannot be ascertained. The productivity of human resources, though cannot be accurately measured, cannot be ignored. So, the measurement of productivity is done on the basis of overall productivity. In this paper, the labor productivity of Tamil Nadu State Transport Corporation (TNSTC) has been evaluated. [ABSTRACT FROM AUTHOR]