Taj Hotel Case Study
The Taj Hotels Group of India’s was created by one of the greatest industrialists, Jamsetji Tata In 1874. Tata group has branched into steel, cement, chemicals, electronics, and multiple other business areas. It was the only hotel when it was created in country. It was located in Bombay and called the Taj Mahal Bombay, later been known as Taj. After the death of Tata Tata’s cousin’s son, J.R.D. Tata, he started running the group ,it has 80 properties all over India . Ajit kerkar became the first managing director of tata group and led the group towards the success . After the taj hotel was created and run by the ajit kerkar from 1970 to 1997 ,there were only formal performance management systems & processes for evaluating, …show more content…
Salaries of employees were 15%–20% below market, & some positions were even 30% below the market. .So as the there were more employees were leaving the taj group due to this. He tried to run taj group on the basis of personal relationship system which later was on not possible due to continous changing environment and increasing competition in hotel industry.
In August 1997 Ratan Tata, who had succeeded J.R.D. replaced the ajit kerkar by Krishna Kumar . Krishna kumar introduced so many new systems after he joined the taj group. He introduced performance management system under which promotions and pay of staff was being determined by a formal review and evaluation process. Strength of such system was that employees may feel motivated for performing better in order to be in the top ranking of the performers and get their desirable positions in the management . weakness of this system can be that employees with low performance level may feel demotivated and may feel they are not in the competition. Other system He introduced was a formal career development process & a committee where employees