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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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
The Quest for Quality Improvement
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Although Ritz-Carlton had been known for high quality service since its early
days, a systematic approach towards quality management began only in the late
1980s, after Schulze became Vice President of Operations. By this time,
Johnson's investments in Ritz-Carlton had made it one of the best hotel chains
in the US and the company had started receiving honors from consumer
organizations and travel industry groups for its service and quality.
However, despite the success of the hotel chain, Schulze was of the opinion that
Ritz-Carlton was far from excellent in ensuring complete customer satisfaction.
Not only was the service quite erratic, but even the employees did not seem to
be clear about what was expected of them...
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Quality and Service at The Ritz-Carlton
Quality management was undertaken by the senior management at the
Ritz-Carlton. The President and other members of the top management formed
the senior quality management team. This team usually met every week to
review product and service quality and guest satisfaction across the chain,
as well as to analyze factors like market growth and development,
profitability, and competitive status. This team played a dual role, and in
its role as the corporate steering committee, it was responsible for
developing the overall strategic plan for the company every year, as well as
establishing and monitoring performance targets...
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HR Practices and Work Culture
Ritz-Carlton regarded employees as the cornerstone of its
exceptional service culture. The company understood that, as a
service organization, the quality of its end product was only as
good as the people providing it. Therefore it took care to see that
it not only recruited the right kind of employees, but also provided
them with the necessary inputs to enable them to provide exceptional
service.
Benchmarking in Recruitment
According to Ritz-Carlton, the company did not 'hire' its employees;
it 'selected' them. |
The selection process was laid out very clearly, and Ritz-Carlton used what
could be called 'benchmarking' in selecting ideal employees...
Orientation and Training
Ritz-Carlton invested significant time and resources on orientation and
training. The company believed that a comprehensive training program was
necessary to instill its values in employees and educate them about its service
standards...
Excerpts Contd...>>
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