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 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).

Introduction

In March 2001, the Taj Group 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.

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.

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

TPP considered every aspect of employees' organizational career planning, right from their induction into the company till their superannuation.

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' for 'Best Innovation in Human Resources' in the global hospitality industry.

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 that it could shape their attitudes and develop their skills in a way that fitted its needs and culture. The management wanted the new recruits to pursue a long-term career with the group. All new employees were placed in an intensive two-year training program, which familiarized them with the business ethos of the group, the management practices of the organization, and the working of cross-functional departments.

The employees of the Taj Group were trained in varied fields like sales and marketing, finance, hospitality and service, front office management, food and beverages, projects, HR and more. They also had to take part in various leadership programs, so that they could develop in them a strong, warm and professional work culture...

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