THE
TAJ'S PEOPLE PHILOSOPHY AND STAR SYSTEM
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THE STAR SYSTEM
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.
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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." |
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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[1] . 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.
QUESTIONS FOR DISCUSSION:1. "The Taj People Philosophy was developed to show the Taj
Group's commitment to and belief in employees." What did the philosophy entail
and what were its key components? Explain.
2. The STARS program was created to reward employees to deliver their best at
the workplace. In what way did this program acknowledge the work of its
employees, and what were the various levels of recognition it offered to its
best employees? How did the program achieve its goal? Explain.
3. STARS was not only successful as an HR initiative, but it brought several
strategic benefits to the Taj Group. What were the various benefits brought
about by the STARS program to the employees and the group? How? Discuss.
ADDITIONAL READINGS & REFERENCES:
1. Ruggia, James, The Class of India, www.web7.epnet.com, November 27,
2000.
2. Sircar, Subhadip, The Taj People Philosophy - Nurturing Employees from the
Womb to the Tomb,
www.expressindia.com, December 23, 2000.
3. Taj Stars in New HR Thrust, www.tata.com, April 23, 2001.
4. Indian Hotels becomes a Harvard Case Study, www.tata.com, Jan 15,
2002.
5. Wah! Taj!, www.tata.com, June 20,2002.
6. PKF Values IHCL at Rs. 2,100 crores, www.tata.com, September 2, 2002.
7. The Taj's 'Stars' Shine Bright, www.tata.com, Novermber 15, 2002.
8. India's largest and South Asia's finest Hotel Chain Beckons!,
www.tajcareers.com.
9. Noronha, Christabelle, A Star is Born, www.tata.com.
10.The Indian Hotels Company, www.tata.com.
11. Indian Hotels Company Limited, www.indiainfoline.com.
12. Taj Careers, www.tajcareers.com.
13. www.tajtech.com.
[1]'The Taj's Stars Shine Bright' by Sujata Chakraborthy, www.tata.com, November
15, 2002.
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