Mis management of employee performance leading to talent loss.

SBR was born in Chandigarh, one cold morning of Feb in 1970. Her father was at that time the
signals corp head of AirForce base Chandigarh and later retired as a Sqardon Leader to become
so at the youngest age in Western Air Command.
Spending her early years in various Air Force stations with in India and a few other countries as
Air Force Attache, the family moving base every 2 years. Flexibility and adaptability to new
languages, cuisine, culture was the way of life.
Schooled in various cities SBR was an above average student as attractions other than studies
was more thrilling and enriching. During the growing up years, focus was on learning life skills
and learning new things, all that was local.
Armed with post graduation in comparative literature from Delhi University, thru campus
interview SBR secured her first job with IBM India in 1992 in the marketing team. Her marriage
in 1994 moved her to Goa and all things Goan.
Given her flexibility, SBR eased into hotel industry marketing and revenue area. With periodic
sabbaticals and after 15 yrs experience in Goan Hospitality industry, in 2010 SBR gets an offer to
join Taj Group of Hotels in Goa to head their marketing and revenues department.
The 5 star category leisure tourism in Goa is largely dependent on corporate tie ups. With 26/11
attacks in Bombay, multinational corporates as organisations moved their business out of India.
These organisations went one step ahead and instructed their employees not to stay in water front
properties in India. As we all know, Goa is a 123 kms coastline and best of the hotels are beach
front properties. This impacted the high end tourism revenue.
As a double whammy, the iron ore industry saw a slump in iron ore exports as the demand for
steel worldwide came down heavily after the Olympics in China. All in all, the revenue scenario
in the State of Goa for the hotel industry was going downhill with no relief in sight.
This one 26/11 incident brought about an almost shut down to Goa tourism sector, the worst hit
was the 5 star category. Industry realized that there were two ways of surviving this, either let
your staff go and cut your costs or hire aggressive marketing talent and capture the market.
Organisations with deep pockets i.e Taj Group decided to do the later.
In the years 2010, 2011 despite of economic upheaval in the country and tourist rate decline in
Goa, the hotel manages to meet revenue targets and surpasses them.
YoY Tourist figures for the state of Goa attached as annexure 1
Press clips of tourist decline estimates attached as annexure 2
YoY Budget / revenue sheets attached as annexure 3

Complimented by the General Manager Ms Chitra Saleem in September 2010 townhall meet : I
appreciate the achievements of the revenue team led by SBR. In our segment, the Goa hotels
have done much better than their counterparts in other cities. Her strategizing capabilities and
quick implementations have got us this buffer.
Taj Hotels as an organisation falls back on the Balanced Scorecard as a tool / structured report
which is a strategy to analyse the performance management supported by design methods and
automation tools, that can be used by managers to keep track of the execution of activities by the
staff within their control and to monitor the consequences arising from these actions.
The organisation follows a rigorous system of KPI tracking on a month on month basis when the
BSC score board is analysed by the Executive team of the organisation the 7th of every month.
The same exercise is carried out quarterly, half yearly and annually. Owing to difficult times, the
hotel send a communication to all employees that the increments would be minimal.
SBR was consistent in her performance and her KRA rating was 4.4 out of 5 for the Financial
year 2009 2010; 4.5 for the Financial year 2010 2011 and 4.6 out of 5 for the half year as in
September 2011. All these parameters were tracked based on the individual KPIs aligned with
the KRAs. Transparency and integrity with her key accounts and operations team of the
organisation, SBR is our resource person in Goa, she has been able to provide rooms to us
when no rooms are available Says Mr Anthony Aavedo, Zonal Manager SBI.
Ever smiling, providing solutions, answering phones 24 / 7, SBR is truly an asset. No wonder
her organisation supports her Says Narendra Punj, CMD Highstreet Cruises, Vivanta Panjims
Highest paying client.
In September 2011, SBR was jolted by a performance appraisal letter mentioning her as a C
performer, resulting in a meager salary increment for the year. She contacted her General
Manager (operational supervisor) seeking an explanation. KRA rating of 4.6 can not translate to
a next to nil increment and a C performance.
A quick check with Unit HR and the General Manager Ms Chitra Saleem explained that this
decision was taken by the Corporate Sales Team (my functional supervisor). The Unit had send
their recommendation as a B+ (recommendation as A would warrant a promotion). A quick
conference phone call with the Corporate HR was set up to sort this out.
Chitra Saleem : Hi Ralph, Sanchita is here with me and wishes to understand her performance
appraisal.
Ralph (Corporate HR) : Hi Sanchita, I understand that there have been a couple of discrepancies
in your performance.
Sanchita : Please explain. My job is to get revenues for the hotel with minimal guest complaints
and I have achieved that says our BSC. I need to understand what makes you say that!!

Ralph : On two occasions, discrepancies were found in what you said and what happened. The
first incident was couple of months back when you were supposed to be present in the hotel
during the Govt of Goa dinner, however, you had left before the dinner got over. And on another
occasion, an esteemed corporate came to the hotel to see you and you were not present.
Sanchita : But Ralph can you please give me more specifics please?
Ralph : Sorry, I do not have the specific details. As a company policy we trust our senior
managers.
Now let us look from the organisation perspective.
The organisation could not dispute the KRA rating of 4.6 as it is quantitative. An event of non
performance which was vaguely mentioned does not do justice to downgrade an employees
performance.
The economic upheaval in Goa, was that a deterrent in announcing higher increments? Or
because the organisation knew that they would not lose employee x to another hotel in South as
SBR lived next door to the Hotel. Commuting as a comfort would ensure SBR to stay back with
the organisation?
SBR realized that HR has done this deliberately and has no facts or data basis on which they
could justify a performance rating of C. She decides to move on and starts looking for
alternatives. Comes across the Leader of Opposition Mr Manohar Parrikar and explores
possibility of work within a political system. March 2012 Goa goes to polls and Mr Manohar
Parrikar takes over as the new Chief Minister of Goa. SBR gets an offer letter to work with the
Chief Minister of the State. The offer is accepted.
Subsequently, after 3 yrs Mr Manohar Parrikar goes on to take over as the Defence Minister of
the country. SBR is again hand picked by the now Defence Minister of the country to work for
him.
Questions that arise from this case study :
1. Was Taj doing their employee performance management judiciously?
2. What are the traits of employee x? and the organisation?
3. What the organisation could have done to recognize talent? How could the organisation have
retained this talent?
4. From the employees point of view what went wrong?
5.What are the HR issues that emerge from this case?
6. What are your recommendations for the organisation?