Ritz-Carlton's Human Resource Management Practices and Work Culture: The Foundation of an Exceptional Service Organization
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Case Details:
Case Code : HROB100
Case Length : 23 Pages
Period : 1983-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : The Ritz-Carlton Hotel Company LLC
Industry : Hotels and Hospitality
Countries : US
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Culture: The Foundation of an Exceptional Service Organization case study
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"We believe that to create pride and joy in the workplace,
you must involve the employees. And you create that pride and joy by making
employees feel like they are a part of the Ritz-Carlton. We're here to provide
service, but we're not servants. We're professionals in our field. Everything
happens because the employees are so committed."
- Theo Gilbert-Jamison, Vice President of Leadership
Development at the Ritz-Carlton, in 2001 1
"It's [Ritz Carlton's culture] definitely a little
cult-like. But that stuff stays behind the scenes. Travelers just know they're
getting great service."
- Laura Begley, Style Director at Travel + Leisure magazine,
in 2004 2
Ritz-Carlton Tops in Training
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The Ritz-Carlton Hotel Company LLC (Ritz-Carlton), the US-based parent company
of the luxury hotel chain of the same name, was ranked 1st in the 'Training Top
125 Winners' list published by Training magazine in February 2007. The company
had received recognition for the comprehensive training program that all its
employees were made to undergo in its quest to achieve service excellence.
Ritz-Carlton, a subsidiary of Marriott International Inc. (Marriot), one of the
largest hotel groups in the world, was known for the sophisticated and elegant
ambience of its hotels and the exemplary quality of the service provided (Refer
to Exhibit I for a profile of the Marriott Group).
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The company cultivated its reputation carefully, referring to its employees
as 'ladies and gentlemen,' and training them to provide high quality service
conforming to the precise specifications and standards laid out in the
Ritz-Carlton Gold Standards.
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The company invested sizeable resources in developing the potential
of its employees (as of early 2007, the company invested ten percent
of its total payroll expenses in employee training3).
In addition, Ritz-Carlton had built a reputation as one of the best
employers in the US.4 The
company had a low rate of voluntary attrition, which, at 18 percent,
was significantly lower than the rest of the hospitality industry,
where it approached 100 percent.5
Ritz-Carlton was often cited as an example of a service company that
had successfully leveraged the potential of its human resources to
achieve excellence. |
Ritz-Carlton's Human Resource Management Practices and Work Culture: The
Foundation of an Exceptional Service Organization
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