The document discusses the history and initiatives taken by Taj Hotels to improve its corporate governance, employee development, and performance management practices. It describes how Taj introduced a balanced scorecard system, 360-degree feedback, and career development committees to link employee performance to strategic goals and provide fair evaluations. The document advises Krishna Kumar to not reverse the recommendation of the Career Development Committee for appointing a general manager, as Taj's promotion system is now governed by employees' completion of key result areas, not personal relationships.

1. By:
Akhilesh Singh Rawat
Harish Kumar
Pushpendra Kumar Singh
Shubha N. Bhambhani
PG-PPM , MDI GRGAON

2. Issue at hand
Krishna 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 seriously
CDC has spent considerable time and discussion in
selecting the candidate
Bhowmick may help the person whom he chooses but
not the person selected by the system
Good Judgment vs number based performance

3. History and Origins
Taj Mahal Bombay ( the Taj) was built by Jamshetji Tata in 1903
Indian Hotels Compnay(IHC) was sole share holder
Under 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 market
Lack 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

4. New Initiatives in Taj
Vision 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 market
Some of the properties were sold and shut down
Management 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)

5. 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

6. New Initiatives in Taj - Contd
Taj Focused training interventions
Focus on creating system and standard for
operations and Service Quality
Balance 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

7. Challenges
Transparency at Great Cost – Comparison of Fast Tracked
Professional and Non Fast Tracked Professional
Dilemma 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 excellence
Need 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

8. 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 Properties
Service Quality compromised
Lack of Structured systems - 3600 feedback
Employee Satisfaction Tracking System

9. Developing Managers – Current & Future
Career Development Committee
System 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

10. The way forward
Krishna 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.

11. Thanks

12. 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.

13. 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.