Taj Hotel Group

Taj Hotel
Group · SINCE 1903·

Submitted By: OCD Group 2

SINCE 1903
 ·01 INTRODUCTIO Taj Hotel Group

N
·
Background and dilemma

SINCE 1903
 Taj Hotel Group

CHANGE: INTRODUCTION OF PMS

PMS Issue Resistance

RK Krishan Kumar (MD &
Bhowmick was a veteran
Head of THG) introduced Subir Bhowmick felt that in hotel industry and he
a PMS in THG; systemised assessement had a different person in
performance and pay will might not always pick the mind selected for Taj
be determined after a right candidate Kumarakom
formal review and
evaluation process

SINCE 1903
 Taj Hotel Group

HISTORY

·1· ·2· ·3·

·1874· ·20th Century Begining· ·1903·
Jamsetji Tata had one From textile, Tata group Taj Mahal Bombay, 1st
textile mill under him branched into steel, Tata hotel was
chemical, coal, established
electromins and others

SINCE 1903
 Taj Hotel Group

HISTORY

·4· ·5· ·6·

·1973· ·1970-1997· ·1997·
Ajit Kerkar headed IHC
Till now only one hotel
(Indian hotel company: Ratan Tata replaced
under Tata’s belt
Hotel division of Tata) Kerkar with Krishan
Kumar. Krishan Kumar
ushered a new era to IHC

SINCE 1903
 Taj Hotel Group

PERFORMANCE SYSTEMS

TAJ PEOPLE
NEW SYSTEM
PHILOSOPHY Balanced scorecard and individual
HRD adopted this after years being incentive plans that linked reward
devoid of any formal system to track to performance
develop and evaluate the
employees

PERF. APPRAISAL PACs

75% Objective To “fast track” employees performance
25% Judgement assessements centers were establised by
KRAs were laid out in the beginning Taj, after 4 days of evaluation they were
of each year and progress was sent to IIM B for a mini MBA program to
tracked prepare them for general mangement
position.
SINCE 1903
 Taj Hotel Group

PERFORMANCE SYSTEMS

COST OF
OVER STAFFED
TRANSPARENCY They were at 1:3.2 guest to
The executives who are not on the
attendent where as industry
fast track program but are good at
avegrage 1:2.5
what they do will feel agitated

SCOPE FOR MORE

Some felt more refinement was
required

SINCE 1903
 Taj Hotel Group

EXTERNAL FORCES AND

STRATEGIC ISSUE:
COMPETETION CIRCLING

● Ritz and Four Seasons threat

● With these top international chains coming
they have to offer not just equal service but
better service because the global competitors
have the benefit of global marketing and
customer loyalty program.
● Taj needed to focus on delivering a level of
service quality that met global standards

SINCE 1903

DEVELOPING MANAGERS
The Past
Informal and subjective,
Bhowmick felt that the new
system like 360 degree
feedback didn’t capture all the
aspects of being a successful
Manager
But made the overall fuctioning
easier
SINCE 1903
Taj Hotel Group
The Future
TAS officers who lacked
industry exp. and had short
term perspective and wanted to
move to other Tata Company.
Additionally MT programs to
bring in best from the country’s
best hotel management schools
Some became mangers
through promotions
 Taj Hotel Group

CAREER DEVELOPMENT COMMITTEE

The Career Development Committee (CDC) met to discuss high-level openings and how to groom senior
managers for those jobs.

Tata operated with a lot of intrinsic faith the employees respected seniors executives and believed in personal
guidance by the managers over the new system

One of the main objectives of the CDC was to value the contributions and help shape the careers of solid
performers as well as the high performers who had always received extra attention even under the old
informal system

A major discussion point among committee members was how to decide, when desirable positions opened
up, whether to give solid performers an opportunity to grow and develop or always send in a star performer
to minimize risk and maximize the likelihood of success.

Some committee members believed that even though it might be desirable to allow other managers
opportunities to develop, if star performers became resentful that they were not always given the best of the
available openings they might become restless and think about moving to competitors.

SINCE 1903
 Taj Hotel Group

DILEMMA
Bhowmick tried to explain why his
handpicked candidate was better than the
one choosen by CDC

Krishan Kumar was aware of the implication

of not choosing the candidate selected by the
committee

He was also aware that Bhowmick might not

treat this candidate justly.

SINCE 1903

PMS Systems
Kerkar Way
MD personally groomed MTs,
through rotation stints across
different Taj
Informal and subjective
performance appraisal
Informal mentoring by different
managers at different levels
Charismatic leadership ensured
a sense of belongingness and
strong emoloyee loyalty
More consideration to
members from in-group
Considerably overstaffed
SINCE 1903
Taj Hotel Group
Taj People Philosophy
75% appraisal was based on KRAs
and the rest judgemental
Performance management linked to
balanced scorecard
Creation of individual incentive plans
Goals & objectives detailed in the
start of each year
Employee satisfaction tracking system
Taj focused on training interventions
through CoE
Potential development Centres
established to groom leaders
Practises were documented
 Taj Hotel Group

How should organizations manage different

types of people?

Stakeholders must be consulted and metrics should be made in accordance. They should be educated about
the same again once implemented.

Transparency in metrics and evaluations essential to maintain trust within the organisation.

Managers should focus to be people oriented along the lines of Tatas cultural values, management by
walking around would be great

Feedback systems to be placed to capture problems at the earliest

SINCE 1903
 THANKS
Taj Hotel Group

! Submitted by:
OCD Group 2

Anveshi Sharma MBA/06/009

Nithin Babu K MBA/06/151

Mohamed Anas Ravoof K MBA/06/142

CREDITS: ThisFayez A Musaliar

presentation MBA/06/075
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SINCE 1903