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The below steps may be used to correct the situation. The below example uses /home/tsminst1 for the instance directory.
As root user, Run the following command to source db2profile and reset the environment variables:
/home/tsminst1/sqllib/db2profile
cd /home/tsminst1
and run below command
/opt/tivoli/tsm/server/bin/dsmserv -u tsminst1 -i /home/tsminst1
As instance user, run the following commands
su - tsminst1
cd /home/tsminst1
/opt/tivoli/tsm/server/bin/dsmserv