The Taj's People Philosophy and Star System

The Taj People Philosophy Contd...

TPP was based on the key points of the Taj employee charter (Refer Table I). It was developed in line with the Tata Business Excellence Model (TBEM)⁵. Explaining the rationale for implementing the philosophy, Martyris said, "It is to achieve that international benchmarking in hospitality, and HR must fit into it."

TABLE I
KEY POINTS OF THE TAJ CHARTER

Some of the key points of the Taj Charter are given below:

• Every employee of the Taj Group would be an important member in the Taj family.
• The Taj family would always strive to attract, retain and reward the best talent in the industry.
• The Taj family would commit itself to formal communication channels, which would foster transparency.

Source: www.tata.com

According to him, the three major areas of TPP included work systems and processes; learning and development; and employee welfare. As part of the TPP, the Taj Group introduced a strong performance management⁶ system, called the Balanced Scorecard System (BSS) that linked individual performance with the group's overall strategy.

BSS was based on a model developed by Kaplan and Nortan⁷, and focused on enhancing both individual as well as enterprise performance. BSS measured the performance of employees across all hierarchical levels against a set of predefined targets and identified their variances. Martyris explained, "We are looking at a matrix form of organization which cuts across hierarchy. It is important to understand the potential of people." Therefore, BSS was implemented even at the lowest levels of the hierarchy.

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5] TBEM provides guidelines for the introduction of business systems into the organization and correlates business performance and rewards to individuals. The TBEM includes systems for reviewing talent and offering opportunities across various functions within the group companies.

6] Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a total work system that begins when a job is defined as needed. It ends when an employee leaves the organization.

7] Professors at the Harvard Business School (HBS).

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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