Taj Case Study

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THE TAJ’S PEOPLE
PHILOSOPHY AND STAR SYSTEM

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HROB - 027

This case was written by P. Mohan Chandran, under the direction of Vivek Gupta, ICFAI Center for Management Research (ICMR). It is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation.

The case was compiled from published sources.
 2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means – electronic or mechanical, without permission.

To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org

HROB/027

THE TAJ’S PEOPLE PHILOSOPHY AND STAR SYSTEM
“The employee at Taj is viewed as an asset and is the real profit center. He or she is the very reason for our survival. The creation of the Taj People Philosophy displays our commitment to and belief in our people. We want an organization with a very clear philosophy, where we can treasure people and build from within.”

- Bernard Martyris, Senior Vice-President, HR, Indian Hotels Company Limited (IHCL).

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INTRODUCTION

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In March 2001, the Taj Group1 launched an employee loyalty program called the ‘Special Thanks and Recognition System’ (STARS). STARS was an initiative aimed at motivating employees to transcend their usual duties and responsibilities and have fun during work. This program also acknowledged and rewarded hard working employees who had done excellent work.

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The Taj Group had always believed that their employees were their greatest assets and the very reason for the survival of their business. In 2000, to show its commitment to and belief in employees, the Taj Group developed the ‘Taj People Philosophy’ (TPP), which covered all the people practices of the group. TPP considered every aspect of employees’ organizational career planning, right from their induction into the company till their superannuation.

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TPP offered many benefits to the Taj Group. It helped the company boost the morale of its employees and improve service standards, which in turn resulted in repeat customers for many hotels in the group. The STAR system also led to global recognition of the Taj Group of hotels in 2002 when the group bagged the ‘Hermes Award’2 for ‘Best Innovation in Human Resources’ in the global hospitality industry.

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THE TAJ PEOPLE PHILOSOPHY

Since its establishment, the Taj Group (Refer Exhibit I) had a people-oriented culture. The group always hired fresh graduates from leading hotel management institutes all over India so 1

The Taj Group of Hotels is run by IHCL, a part of the Tata Group. IHCL was founded by Jamsetji Nusserwanji Tata on April 1, 1902. The hotels in the Taj Group fall into three categories – hotels owned by IHCL and its subsidiaries; hotels owned by associate companies; and hotels with third party management contracts in which IHCL has no stake.

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The ‘Hermes Award’ is decided by a 22-member jury, which includes representatives from top hospitality chains from all over the world. This is the only award given for human resources in the hospitality industry and is also one of the most prestigious awards in the hospitality industry. 120 applications were received for the award for the year 2002, among which five were short-listed for the final round. The Taj Group won the award for its innovative ‘STAR’ program.

This case was written by P. Mohan Chandran, under the direction of Vivek Gupta, ICFAI Center for Management Research (ICMR).
 2003, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, used in a spreadsheet, or transmitted in any form or by any...
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