TAJ

Taj Hotels is a chain of luxury hotels and a subsidiary of the Indian Hotels Company
Limited, Incorporated by Jamsetji Tata in 1903. The company is a part of the Tata Group, one of
India's largest business conglomerates. The company employed over 20,000 people in the year
2010. As of 2020, the company operates a total of 100 plus hotels and hotel-resorts, with 84
across India and 16 in other countries.

The Taj group of hotels is known for its Indian hospitality, “Atithi Devo Bhava”, all over the
world. The Taj group of hotels has been able to distinguish itself from other hotels because of its
traditional Indian roots well reflected in its day-to-day operations. (Taj Hotels, n.d.)

Compensation Analysis
In 2000, the Taj group developed the Taj's People philosophy, aimed at transforming employee-
focused practices. The philosophy considered every aspect of the employee’s journey in the
group from the day he/she joined, till their retirement. TPP helped in boosting the morale of the
employees, and in turn, improved its service standards.

 STAR Program

To appreciate and continually motivate employees, the STARs program (Special Thanks and
Recognition System) was introduced in 2001. The program was a way to encourage employees
to perform over and above their job and deliver excellent service. Employees are given points for
excellent feedback or if they introduce innovation. The program received the 'Hermes Award' in
2002 for the 'Best Innovation in Human Resources' in the global hospitality industry.

 Balanced Scorecard System

To convey the feedback on the performance of the employees, as well as link individual efforts
to the group's performance, the Taj group introduced its Balanced scorecard System (BSS).  BSS
under the Taj's People Philosophy measured performances against predefined targets and
identified variations. It was employed to the lowest levels of hierarchy, as people at Taj believed
that assessing an individual’s potential irrespective of his/her position in the company, was
essential to ensure their growth in the future.

 360-degree Feedback System- Subordinates Evaluating Supervisors

This was a unique approach entailing evaluation of the performance of all senior management
officials by their immediate subordinates. This was followed by interviews of these individuals
to counsel them to overcome their deficiencies. (The Taj Group: Valuing Employees as Assets
through the Taj's People Philosophy and the STAR System, 2022)

Compensation Plan
Top executives at Indian Hotels Company Ltd (IHCL), owners of Taj, also saw a rise of 9 to 39
per cent in their remuneration. Beejal Desai, senior vice president of corporate affairs and
company secretary at IHCL, drew 39 per cent more salary YoY in FY22. (Team, 2022)

Employees at Taj have good incentive compensation packages, bonuses, and employee centric
benefits which highest in the hospitality industry.

Employee Benefits
Employee Benefits at Taj includes Paid Holidays including vacation, Paid sick leave, Cellphone
Reimbursement, Food/Meals on duty, Hotel Discounts and many more.

Employees are also eligible to various vouchers, On the usage of various vouchers, GST must be
paid, and the price at which the service will be GST-attributable has been defined in the terms.
However, the cost of the services is a little amount to pay. This package is only available to Tata
group including Taj employees and costs INR 9,990. It includes the benefits including Food
Facility and Vacation.

The Stupendous Results

A manifestation of such practices could be related to the inimitable value system displayed
during the 26/11 terror attacks. The hotel's employees stayed at their posts to protect guests and
led them to safety. This explores the Tajness service wherein the 'Guests are God' culture is
advocated has shone through. (Sheth, 2021)

The constant effort towards HR policies in the Taj group provided them with the ‘Hermes award’
in 2002 for the best innovation in HR in the hospitality industry. And today, Taj is still carrying
its legacy and work culture of prioritizing its employees. After all, Taj's People Philosophy
states, happy employees, lead to happy customers. (The Taj Group: Valuing Employees as
Assets through the Taj's People Philosophy and the STAR System, 2022)

Bibliography
Sheth, S. (2021, 04 1). A peek into the Balanced Scorecard at Taj Hotels. Retrieved from LinkedIn:
https://www.linkedin.com/pulse/peek-balanced-scorecard-taj-hotels-siddharth-sheth

Taj Hotels. (n.d.). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Taj_Hotels

Team, B. W. (2022, 08 12). Salaries of top managers rise as occupancy in hospitality sector improves.
Retrieved from Business Standards:
 https://www.business-standard.com/article/companies/salaries-of-top-managers-rise-as-
occupancy-in-hospitality-sector-improves-122081200334_1.html

The Taj Group: Valuing Employees as Assets through the Taj's People Philosophy and the STAR System.
(2022, 08 09). Retrieved from Unstop: https://unstop.com/blog/the-taj-group-valuing-
employees-as-assets-through-the-taj-people-philosophy-and-the-star-system