The Taj People Philosophy and Star System

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Case Details:

Case Code : HROB027
Case Length : 09 Pages
Period : 2001 - 2002
Pub Date : 2003
Teaching Note :Not Available
Organization : Taj Group
Industry : Hospitality
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Star System

The STAR system (STARS) was the brainchild of Martyris. The system was developed in accordance with Taj's core philosophy that 'happy employees lead to happy customers.' STARS, operative throughout the year (from April to March), was open to all employees across the organization, at all hierarchical levels. It aimed to identify, recognize and reward those employees who excelled in their work. STARS was actively promoted across the group's 62 chain of hotels and among its 18,000 employees globally, out of which 15,000 were from India. STARS had five different levels. Though employees did not receive any cash awards, they gained recognition by the levels they attained through the points they accumulated for their acts of kindness or hospitality.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

'Level 1' was known as the 'Silver Grade'. To reach this level, employees had to accumulate 120 points in three months. To attain 'Level 2', known as the 'Gold Grade,' employees had to accumulate 130 points within three months of attaining the silver grade...

The Future Plans

The STARS was not only successful as an HR initiative, but it brought many strategic benefits to the group as well. The service standards at all hotels of the group improved significantly because the employees felt that their good work was being acknowledged and appreciated. This resulted in repeat customers for Taj hotels. Because of STARS, the Group won the 'Hermes Award 2002' for 'best innovation in HR' in the hospitality industry. Analysts felt that the fame and recognition associated with the winning of the Hermes award would place the Taj Group of hotels at the top of the list of the best hotels in the world.

The group also received requests for setting up hotels in Paris (France), where the 'Hermes award' function took place...


Exhibit I: The Taj Group of Hotels - An Overview
Exhibit II: Training Programs at the Taj
Exhibit III: Suggestions Made by Employees of the Taj Group Under the Stars


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