The Taj HR model has been adopted for a case study by the Harvard Business school.

It all began last September when Bernard Martyris, Senior Vice President (HR) of the Indian Hotels Company Ltd. (IHCL) took part in a 12-day Harvard Business School (HBS) executive programme on HR management. While most of the 80 participants from 26 countries shared notes on common issues, the cultural aspect of HRD often came up for discussion. Using the experience of his own company, Martyris talked about how IHCL had moved from a work ethos which was relationship-based (especially during the Kerkar days) to one which now depends on solid systems and is more task oriented.

Thomas J. Delong, Professor of Organisational Behaviour at HBS, visited India to interview the Taj staff. At the end of the visit, IHL was envisioned as an example of organisational transformation wherein key dimensions of cultural change went into the making of global managers.

So what’s the Taj People Philosophy all about? Says Martyris, "Talent management is the most important sustainable competitive advantage for future growth." The employee at Taj is viewed as an asset and is the real profit centre. "She is the very reason for our survival. The creation of the Taj People Philosophy displays our commitment to and belief in our people," says Martyris. Taj has evolved around this principle and is moving from being a support function to that of a critical business partner. The building blocks are individual jobs that are big and challenging. "When you widen the scope of each job, they become the bricks with which you build your edifice. The edifice then has a certain quality," Martyris says. It is the successive layering of big jobs which does a lot to the way a structure looks as a whole, as well as to the manner in which people move from job to job. This is the concept of the Tata Work levels (TWLs) that forms the backbone of the HR system and has huge implications on what Taj does with remuneration. "With TWLs, you are creating opportunities for people to move from one big job to another. That’s the structural context," he says. The systemic context is the Tata Business Excellence Model (TBEM), which is a guideline for the way Taj introduces business systems into the organisation and co-relates business performance and rewards to individuals. The TBEM has systems to review talent and offer opportunities across functions and within companies. "Your beging to form a culture based on development and contribution. The best people are assigned the biggest challenges," says Martyris, adding, "employee motivation has been a key issue for Taj."

In fact, in order to reward achievers across all levels of the organisation, the Taj group has patented a unique employee identification tracking and reward programme branded the Star – Special Thanks and Recognition System. It’s an HR initiative aimed at creating an association ‘between our star performers and our brand, the Taj," says Martyris. These stars are not the statesmen or tinseltown glitterati who grace the environs of the Group’s hotels, but to the organisation they are just as important.

The Star campaign offers no cash awards. Recognition comes in the form of levels. Points can be picked up by employees for integrity, respect and regard for others, teamwork, environmental awareness, reliability, outstanding work, courage of conviction and initiative. Practical and useful suggestions that are beneficial to the company can also earn an employee points. Says Martyris, " Many employees do that extra bit, go out of the way to dazzle the customer satisfaction with employee recognition. It is based on the premise that happy employees lead to happy customers." However, while employees can earn merit points for acts of excellence or valuable suggestions, one can also earn 20 "default merit" points if the review committee (comprising the GM, training manager and all heads) fails to revert within 48 hours on a suggestion made.

Star has five recognition levels. Level 1 or the Silver grade requires an employee to earn 120 points in three months, level 2 or the Gold grade can be reached with 130 points within three months of reaching the Silver level. Level three or the Platinum grade requires an employee to accumulate 250 points within six months of reaching the Gold level. The highest grade at the corporate level is the MD’s Club (at 760 points), below which at 510 points and above, an employee can be part of the Chief Operating Officer’s club. "After the campaign was launched, a large number of employees have started working together in the true spirit of teams," says Martyris, adding "this helps us value our human capital. Employee recognition is directly linked to customer satisfaction. It is a recognition for the people of the people and by the people. Wah Taj!