THE Fool's Day on April 1, 1998, is going to be a serious occasion for the underpaid employees at the Rs 577-crore Indian Hotels Company, better known as the Taj group, the country's largest chain of hotels. That will be the day when a new personnel management system developed by consultancy firm A.F. Ferguson will be introduced. For the 12,798 employees of the group, this will be sweet music: compensation packages are expected to match industry norms.
This upward revision of salaries is only a small part of a dramatic restructuring that the new Taj management led by managing director R.K. Krishna Kumar and deputy managing director S. Ramakrishna has undertaken. Says Krishna Kumar: "We expect much greater accountability and job satisfaction to come out as a result of this new system (
see interview )".
With this restructuring, Krishna Kumar will fin-ally lay to rest the ghost of former chief Ajit Kerkar, ousted ignominiously in September. The exercise touches every aspect of the company's...