The other side of business – The True Story of Ratan Tata


‘It is futile to mix business with emotions!’ A well established fact that fuels lay-offs, inhuman sell-off’s, stone hearted acquisitions and the ever diminishing regard for people in businesses driven by people.

There is story that presents the other side of this picture. To top it up, it happened right here in India.

Ratan Tata is the chairman of Indian Hotels who owns the Taj Mahal Hotel Mumbai, which was the target of the terrorists on 26/11/08.

Hotel President a 5 star property also belongs to Indian Hotels.

Lets talk about what he did.

A. The Tata Gesture

1. All category of employees including those who had completed even 1 day as casual were treated on duty during the time the hotel was closed.

2. Relief and assistance to all those who were injured and killed

3. The relief and assistance was extended to all those who died at the railway station, surroundings including the “Pav- Bha ji” vendor and the pan shop owners.

4. During the time the hotel was closed, the salaries were sent by money order.

5. A psychiatric cell was established in collaboration with Tata Institute of Social Sciences to counsel those who needed such help.

6. The thoughts and anxieties going on people’s mind was constantly tracked and where needed psychological help provided.

7. Employee outreach centers were opened where all help, food, water, sanitation, first aid and counseling was provided. 1600 employees were covered by this facility.

8. Every employee was assigned to one mentor and it was that person’s responsibility to act as a “single window” clearance for any help that the person required.

9. Ratan Tata personally visited the families of all the 80 employees who in some manner – either through injury or getting killed – were affected.

10. The dependents of the employees were flown from outside Mumbai to Mumbai and taken care off in terms of ensuring mental assurance and peace. They were all accommodated in Hotel President for 3 weeks.

11. Ratan Tata himself asked the families and dependents – as to what they wanted him to do.

12. In a record time of 20 days, a new trust was created by the Tatas for the purpose of relief of employees.

13. What is unique is that even the other people, the railway employees, the police staff, the pedestrians who had nothing to do with Tatas were covered by compensation. Each one of them was provided subsistence allowance of Rs. 10K per month for all these people for 6 months.

14. A 4 year old granddaughter of a vendor got 4 bullets in her and only one was removed in the Government hospital. She was taken to Bombay hospital and several lacs were spent by the Tatas on her to fully recover her.

15. New hand carts were provided to several vendors who lost their carts.

16. Tata will take responsibility of life education of 46 children of the victims of the terror.

17. This was the most trying period in the life of the organization. Senior managers including Ratan Tata were visiting funeral to funeral over the 3 days that were most horrible.

18. The settlement for every deceased member ranged from Rs. 36 to 85 lacs [One lakh rupees tranlates to approx 2200 US $ ] in addition to the following benefits:

a. Full last salary for life for the family and dependents;

b. Complete responsibility of education of children and dependents – anywhere in the world.

c. Full Medical facility for the whole family and dependents for rest of their life.

d. All loans and advances were waived off – irrespective of the amount.

e. Counselor for life for each person

 

Epilogue

1. How was such passion created among the employees? How and why did they behave the way they did?

2. The organization is clear that it is not something that someone can take credit for. It is not some training and development that created such behaviour. If someone suggests that – everyone laughs

3. It has to do with the DNA of the organization, with the way Tata culture exists and above all with the situation that prevailed that time. The organization has always been telling that customers and guests are #1 priority

4. The hotel business was started by Jamshedji Tata when he was insulted in one of the British hotels and not allowed to stay there.

5. He created several institutions which later became icons of progress, culture and modernity. IISc is one such institute. He was told by the rulers that time that he can acquire land for IISc to the extent he could fence the same. He could afford fencing only 400 acres.

6. When the HR function hesitatingly made a very rich proposal to Ratan – he said – do you think we are doing enough?

7. The whole approach was that the organization would spend several hundred crore in re-building the property – why not spend equally on the employees who gave their life?

It is funny why was this not repeatedly on the news?

Moreover, it drives attention to a rather undervalued aspect of business in this competitive era. That side is Kindness.

Source: Facebook Post with personal commentary.
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10 thoughts on “The other side of business – The True Story of Ratan Tata

  1. Hello Abhinandan, your compilation brought out the quality in every TATA group head – ‘Inspiring leadership’..Your compilation is one among the many deeds of the TATAs – as you rightly said its the DNA. A group which actually represents the real India. This group has done many a great deeds for the country when even the Govt has failed to do. Every venture of the TATAs has a story to tell. ” TATA – Brand India”.

  2. Hey abhi
    thanks for posting this!
    new age media often overlooks the pink side and showcase the darker side
    keep posting! :)

  3. hey abhinav… thanks for bringing this up!!
    somethings that news channels and other media often overlook eh? :)
    very well compiled :)

    • Dear Harikrishnan,

      Glad you read it, please shere it too.

      It truly is overlooked. Thanks for your comment.

      It is based on a well compiled post from facebook. Cant really take credit for the compilation. Just edited and added commentary :)

      It will be great to catch up with you on twitter, i tweet as the @thebongkong

      Regards,

      Abhinandan

  4. Even before Ratan and The Taj shootings, the Taj group has been benevolent employers without losing their competitive edge or losing relevance in every decade of their existence. They have mostly followed a No Firing policy. They have not succumbed to the hire and fire policy; they provide preference to children of current employees if they have the qualifications and skills and are there when they have personal challenges. Today they are a global conglomerate that is the envy of all without reducing their people to mere valuation numbers!!

    • Hi Lalitha,
      I Agree, people are not and should not be treated as mere assets in a/c books. They are a truly a lot more and the Tata’s prove it. Thanks for your response, hope you would like the other articles too . See you on twitter :)

      Cheers, Abhinandan , @thebongkong

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