The Taj's People Philosophy and Star System

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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. The HR practices at the Taj Group attracted several Human Resources and Organizational Behavior experts' world over. In late 2001, Thomas J. Delong, a professor of Organizational Behavior from Harvard Business School (HBS), visited India and interviewed various employees in the Taj Group. After his visit, the Taj Group was "envisioned as an example of organizational transformation wherein key dimensions of cultural change went into the making of global managers."

Analysts also felt that social responsibility and people-centric programs were the core values at Taj Group, which were well demonstrated through the 'Taj People Philosophy.' Martyris said, "The challenges here lay in retaining the warmth and relationship focus of the Taj and inculcating a systems-driven approach to service."

Analysts felt that the Taj Group had been highly successful because of its ability to provide better opportunities and give greater recognition to its employees, which motivated them to work to the best of their abilities. The Employee Retention Rate (ERR) of the Taj Group was the highest in the hospitality industry because of its employee-oriented initiatives. In spite of the highest ERR; Martyris felt that the retention of talent was Taj's major challenge . He said, "Our staff is routinely poached by not just industry competitors but also banks, call centers and others. In 2002, in the placements process at the hotel management institute run by the Taj, more than half of those passing out were hired by non-hospitality companies. While we are happy to see the growth and opportunity for this sector, we also feel there is a need for introspection. Are we offering swift and smooth career paths to our employees? How am I to retain staffers from moving across industries?"

In late 2002, the Taj Group, to demonstrate its strong belief in employees, announced plans to make further investments in training, development, and career planning and employee welfare. The group also tried to standardize its various processes and develop a common work culture. After winning the Hermes Award in 2002, the group also planned to nominate the BSS for the Hermes Awards 2003.

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