Taj group
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Transcript of Taj group
Case Study of Taj Hotel Group
By:Akhilesh Singh Rawat
Harish KumarPushpendra Kumar Singh
Shubha N. BhambhaniPG-PPM , MDI GRGAON
Issue at handKrishna Kumar is facing a dilemma that Mr.
Bhowmick who is COO of Luxury Hotel Division has plan to appoint a General Manager who has been handpicked by him in contrast to CDC recommendation. Experience with the processes that no one took
seriouslyCDC has spent considerable time and discussion
in selecting the candidateBhowmick may help the person whom he chooses
but not the person selected by the systemGood Judgment vs number based performance
History and OriginsTaj Mahal Bombay ( the Taj) was built by Jamshetji Tata
in 1903Indian Hotels Compnay(IHC) was sole share holderUnder Ajit Kerkar who led during 1970 to 1997 , saw
rapid growth & at one point Taj group owned more then 80 properties within Indian and overseas
Kerkar was charismatic leader running organization on personal relationship
Success for employees was determined by the proximity to Kerkar - Resentment among executive who were not in Kerkar’s coterie
Salaries were 15-20% below the marketLack of Corporate Governance - Questions were raised
for not meeting ethical standards by Taj Group and finally Kerkar forced to resign
Krishna Kumar, who was head of Tata Tea was made MD of IHC
New Initiatives in TajVision of Taj “ a hotel with service philosophy of
Indian World and the technological underpinning of the western word”
Voluntarily Early retirement package was given to 256 executives and 1697 staff members out of 15000
Salaries were raised to be inline with marketSome of the properties were sold and shut downManagement Structure based on Product Area was
formed and resulted in to three divisions viz. Luxury Hotel , Business Hotel , other division ( Leisure hotel , International Hotel and Air catering)
New Initiatives in Taj - Contd
Taj People Philosophy – Performance Management Process linked to long term company goals Through Balanced Scorecard
Performance Appraisal System ( 75% on Objective Results , 25% on Judgmental Review) for fair evaluation
Key Result Area ( KRA) comprising Goals and Objectives were laid out at the beginning of each year and progress was tracked and monitored
Potential Development Centre (PDC) – established to evaluate the fast track professionals
Employee Satisfaction tracking System
New Initiatives in Taj - Contd
Taj Focused training interventionsFocus on creating system and standard
for operations and Service QualityBalance of Labor management relations 360 degree feedback system Carrier Development Committee – formed
to value the contributions of performers , discuss high level openings and how to groom senior mangers for those jobs
Challenges Transparency at Great Cost – Comparison of Fast
Tracked Professional and Non Fast Tracked ProfessionalDilemma for achieving the international norms for staff
to guest ratio Growth of a non IT conversant workforce Competition from Global Luxury Hotel Chains – World
class Service and standards of excellenceNeed to have a Balance among the Ability to change and
value of relationship & local Knowledge – Labour Management Relationship
Hotels with service philosophy of Indian World with technological underpinnings of the western world – Glass ceilings for Indian Managers
Developing Managers - Past
Tata Administrative Service Taj’s own Management Training Program Rising through by excelling as staff workers
through sheer hard work Under tutelage of Seniors(Kerkar) - Managers
were mentored/developed and assigned to PropertiesService Quality compromised Lack of Structured systems - 3600 feedbackEmployee Satisfaction Tracking System
Developing Managers – Current & Future
Career Development CommitteeSystem based Approach not a substitute for mentoring
Performance Management Process linked to long term company goals Through Balanced Scorecard
Performance Appraisal System ( 75% on Objective Results , 25% on Judgmental Review) for fair evaluation
Key Result Area ( KRA) comprising Goals and Objectives were laid out at the beginning of each year and progress was tracked and monitored
Potential Development Centre (PDC) – established to evaluate the fast track professionals
The way forwardKrishna Kumar need not to reverse the decision
of CDC on account of following : - Taj Group is concerned with promoting within
company and personally making efforts to educate and better their current staff has positive outlook.
The promotion in Taj Group are being governed by how well the employee is completing that KRA instead of personal relationship between employee and management
Employees are aware of the CDC and they know that the performance is continuously being monitored by central management.
Thanks
Balanced Scorecard The balanced scorecard
is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.
360 degree feedback system 360-degree feedback, also
known as multi-rater feedback, multi source feedback, or multi source assessment, is feedback that comes from members of an employee's immediate work circle. Most often, 360-degree feedback will include direct feedback from an employee's subordinates, peers (colleagues), and supervisor(s), as well as a self-evaluation. It can also include, in some cases, feedback from external sources, such as customers and suppliers or other interested stakeholders.