The Taj's People Philosophy and Star System

The Star System Contd...

Many employees do that extra bit and go that extra mile, out of the way to dazzle the customer satisfaction with employee recognition. Employee recognition is, hence, directly linked to customer satisfaction. It is recognition for the people, of the people and by the people." STARS was also used by the group as an appraisal system, in addition to its regular appraisal system.

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."

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Case Details

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

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