Taj hrm case on tpp

7/29/2019 Taj hrm case on tpp

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The Taj People Philosophy And StarSystem

The Employee at Taj is viewed as an asset and is the real profitcenter He/She is the very reason for our survival. The creation of

the Taj people Philosophy displays our commitment to and belief inour people. We want an organization with a very clear philosophy,

where we can treasure people and build from within.


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1. The Taj People Philosophy was developed to show the Taj Groupscommitment to and belief in employees. What did the philosophy entailand what were its key components? Explain.

2.The STARS program was created to reward employees to deliver theirbest 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 bestemployees? How did the program achieve its goal? Explain.

3.STARS was not only successful as an HR initiative, but it broughtseveral 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.

TPP Case Study


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Introduction

In 2000, to show its commitment and belief in employees, The Taj Groupdeveloped The Taj People Philosophy (TPP). They believed thatemployees were the greatest asset to and the very reason for the survival oftheir business

In 2001 The Taj group started employee loyalty program known as Special

Thanks and Recognition System (STARS) .It aimed at motivatingemployees to transcend their usual duties and responsibility, It alsorewarded hard working employees who had done excellent work.

The STAR system also led to global recognition of the Taj Group of Hotelsin 2002 when the group bagged the HERMES Award for Best innovation inHuman Resources


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TPP Key Components

The Womb To Tomb Approach . It covered all the aspect of an employeecareer from joining the group until his/her retirement.

All the new employees were placed in an intensive two year trainingprogram which familiarized them with the business ethos of the group.

Work system and process, learning and development and employee welfare.Which ultimately resulted in customer satisfaction and retention.

The TPP was based on TATA BUSINESS EXCELLANCE MODEL.


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The Taj Charter

Every employee of the Taj Group would be an important member in the Tajfamily.

The Taj family would always strive to attract, retain and reward the besttalent in the industry

The Taj family would commit itself to formal communication channels, whichwould foster transparency.

Balanced scorecard system (BSS).

Employee satisfaction and tracking system (ESTS).

To weed out under performer.

It also rewards it best employees.


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STARS various levels of recognition

Level 1 : Silver Grade 120points in 3 months

Level 2 : Gold Grade 130 pointsin 3 months

Level 3 : Platinum Grade 250points in 6 months

Level 4 : 510 < 760 points.(MDs Club )

Level 5 : 760 points or more.(Chief Operating Officers

club)

Points were granted on basis ofparameters like integrity,honesty, kindness, respect forcustomers, environmental

awareness, teamwork,trustworthiness, excellence inwork, new initiatives, courageand conviction among other.


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STARS Acknowledgement of Employees

The Level system of earning Recognition.

The point needed for the STARS could be earned by appreciation bycustomers, compliment a colleague, forums and various suggestionschemes.

An employee could also get default points if the review committeecouldn't give any feedback to the suggestions of the employee withintwo days.

According to the point the employee could get a star , which would bepinned on their coat as a recognition.

The winners were facilitated at the annual function held by Taj, theywould also get gift hampers, cash vouchers or a vacation in Taj hotelof their choice in India .This ceremony significantly boosted theirmorale.


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SUGGESTIONS MADE BY EMPLOYEES OF THETAJ GROUP UNDER THE STARS

After the STAR initiative was launched, the following suggestionswere made byTaj Group employees and accepted by the organization:

Name of employee: G. L. MurthyLevel: Silver levelLocation: Taj Krishna, Hyderabad.

Suggestion: It is suggested that cars owned by in-house guests and parked in our hotel overnight should be cleaned and a small note left behind for the guest saying, Yourcar has been cleaned. This actwill dazzle and delight our guests.


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Name of employee: P. MakhaniaLevel: Silver levelLocation: Taj Mahal, Mumbai.Suggestion: Room No 287 is kept as or designed for handicapped/disabled people. I suggest we keep a bulb, which flickers when someone rings the bell(this for a guest who is deaf but not blind). It could be just like the housekee

ping corridor bulb.

Source ICFAI case collection


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STARS Achievements

Happy Employees lead to Happy customer

After implementation of STARS customer satisfactionlevels increased significantly.

Large number of Taj employees started working together

in a true spirit of teams.

Many employees to that extra bit and go that extra mile,out of the way to dazzle the customer satisfaction withemployee recognition.

The recognition of Taj employees directly linked tocustomer satisfaction.


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Benefits bought about by STARS

Service standards at all Taj hotels improved significantly because the

employee felt that their good work was being acknowledged andappreciated.

Repeated footfalls of customers were noticed after implementation ofSTARS.

Taj group won the Hermes award in 2002 for best innovation in HR,and in the hospitality industry.

It also got offers to set up hotels in France.

The Taj group of hotels was placed at the top of the list of the besthotels in the world after winning the Hermes award.

The Employee Retention Rate of the Taj group was the highest inthe hospitality industry because of its employee oriented initiatives .


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The Hermes Award

The HermesAward is decided by a 22member jury, which includes representatives from top hospitality

chains from all over the world. This is the only award given for human resources in the hospitality industry and is also one of the most prestigious awards in the hospitality industry. 120 applications were received for the award for the year 2002, among which five were short- listed for the final round. The Taj

Group won the award for its innovative STAR program.


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Indian Hotels Company Ltd

(Rs in Crores) Q1 FY 2001-02 Q1 FY 2000-01 Q1 FY 1999-00

Sales & RelatedIncome

157.98 140.37 122.35

EBIDTA 39.23 33.92 27.23

TRENDS IN QUATERLY TURNOVER AND EBIDTA

Source THE HINDU BUSINESS


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In 2002, in theplacement process atthe hotel

managementinstitutes run by thetaj, more than half ofthose passing out

were hired by nonhospitalitycompanies.


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Presented by:RoshanJayeshNikhil

Taj hrm case on tpp

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