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ORGANIZATIONAL CULTURE

TAJ CASE ANALYSIS

TAJ Hotel group culture


Customer centric approach.
ATITHI DEVO BHAVA was their guiding philosophy.
Building trust and long relationship with customers.
Develop competencies - Leadership of results ,business and

people.
Better aligning the company towards achieving its vision,
mission, and goals
High employee motivation and loyalty
Shaping employee behavior at work, enabling the
organization to be more efficient.
Empowered employees .

Factors leading to the culture.


Value driven recruitment system.

Seek fresh recruits rather than lateral hires.


Hire needy people from small towns and semi urban areas where
traditional Indian values such as respect for elders and teachers, humility,
consideration for others , discipline and honesty still hold sway.
Recruitment based on traditional values , respect for elders,
cheerfulness and neediness.

Training employees as customers ambassadors

Three skills are imparted technical, personality skills and customer


handling skills.
Duration of training is 18 months against the standard 12 months.
Employee empowerment to take decisions and act without any
explanation.

Factors leading to the culture.


Recognition as reward system.

TAJ group believed that happy employees lead to happy customers.


STARS program linked customer delight to employee rewards.

Compliment from Guest,


compliment from colleagues
Own suggestions

Immediate supervisor was responsible for rewarding and recognizing his


subordinates.
Orbit performance system to recognize people .

Customer centric approach.


Dedication to duty, desire to protect guest, quick thinking, personal caring.

Highest level of quality


- Ability to many extra miles to delight customer..

Management Perspective
Pros

Cons

Difficult model to imitate ,giving


competitive advantage

Selection of employees is crucial.


Mistakes in selection may hurt severely.

Contended employees stay loyal to the


company , with low attrition.

Strong culture acts to homogenize the


workforce and reduce diversity. This
reduces creativity and innovation.

Low cost but highly effective employees


who are motivated.

Barrier to mergers and acquisitions


as it becomes difficult for people to
adapt.

Corrective actions are easy to identify


and take up

Organizational Perspective
Pros

Cons

Quick decisions because of


decentralization

Misuse of power can happen in a


decentralized system

Social control within the firm. Everybody


is oriented towards the same direction.

Strong culture Can lead to Group Think


which will kill innovation.

Goal alignment makes decision faster

Culture being so strong it is difficult for


the organization to change when
required.

Equal opportunity for each employee to


realize their full potential within the
company

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