This case study (Delong and Vijayaragavan, 2002) embodies the extensive change management took place in Taj Hotel Group; India’s pioneer in hotel and hospitality industry during the time period of late 1990s. This revolutionary transformation created a tide of cultural, financial and strategic change within the company. Introducing novel practices influencing the cultural upheaval, streamlining the company owned properties and rationally re-structuring the company’s management while implementing new state of the art strategies to strengthen the company against its competitors.
Towards the end of the long tenure of Ajit Kerkar; 1970 to 1997, Taj …show more content…
In appraisal of the case study context, it is evident that before Kumar, Taj had Personnel Management; this evolving restructure of HR practices has transformed Personnel Management to HRM. According to Torrington et al. (2005) there is a significant strategic and operational difference between PM and HRM. Guest (1987) reasoned that PM mainly focus on administrative aspects of the organization while, HRM concentrate on developing and retaining the human capital of the organization. Therefore Kumar has tried to develop Taj’s existing mangers for future general management roles, while utilizing the key players in the most needed settings to break up the fiefdoms and expose them to new environments (Delong and Vijayaragavan, 2002). Guest (1987; 1997) believes PM failed to generate trust element in employee while HRM succeeded. Also he tells HRM is more flexible, keen on unitarism than pluralism, focus on maximum utilization of human resources and it is a long term strategy.
Establishing a formal PM system aligns employee objectives and skills strategically with organizational goals. In particular, the use of the balanced scorecard (BSC), 360 feedback and Key Resulted Area (KRA) represents this objective: it is aligned to the organization’s vision and mission. Thus, the company gains competitive advantage through increased organizational performance (Kaplan and Norton; 1996; 2007).