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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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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Ritz-Carlton Tops in Training Contd...

Although many of Ritz Carlton's competitors, like the Four Seasons Hotels6 and the Mandarin Oriental,7 also provided great service, analysts generally agreed that there were few hotels that could match the Ritz Carlton's level of service.

This is borne out by the fact that, as of 2007, Ritz-Carlton was the only hotel company to have ever won the prestigious Malcolm Baldrige National Quality Award,8 as well as the only service company to have won it twice (in 1992 and 1999).9

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

Background

Ritz-Carlton traces its history back to 1898, when Cesar Ritz, a Swiss hotelier, opened the first Ritz hotel in Paris. During the course of his career, Cesar Ritz had worked in different positions at several well-known hotels, and had definite ideas about what made a good hotel. In line with his ideas, he designed the Ritz hotel in Paris to be one of the most elegant hotels of the time. The hotel's design, furnishings and meticulous service made it a great favorite with the wealthy and aristocratic members of society at that time.

In the early 1900s, Cesar Ritz opened the Carlton Hotel in London, in addition to other hotels under the Ritz name across Europe. He also set up the Ritz-Carlton Management Corporation (RCMC) to franchise the Ritz-Carlton name and logo to interested parties who wished to establish hotels of their own. The franchisees were required to adhere strictly to the service and culinary standards set by the RCMC. Under the direction of the RCMC, a Ritz-Carlton hotel was established in New York in 1910. This was followed by several other hotels across the US and Europe.

After Cesar Ritz died in 1918, his wife continued to franchise the Ritz-Carlton name and several new hotels were set up.

Excerpts >>


6] Four Seasons Hotels, founded in 1960, is a Canadian-based international five-star luxury hotel chain serving the higher end of the hospitality market. As of mid-2007, the chain operated more than 70 hotels in 31 countries.

7] The Mandarin Oriental Hotel Group is a part of Jardine Matheson Holdings Limited, an MNC headquartered in Bermuda. The hotels are managed by the parent company, Mandarin Oriental International Limited. As of mid-2007, Mandarin Oriental operated more than 35 hotels around the world.

8] The Malcolm Baldrige Award is given by the President of the United States to businesses (manufacturing and service) and to education, healthcare and nonprofit organizations that apply and are judged to be outstanding in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results. The award is named after Malcolm Baldrige who was the Secretary of Commerce in the US from 1981 to 1987. Baldrige was a great proponent of the quality movement in the US. The US Congress created the award in his name after his death in 1987. The Baldrige Award is often compared to the Deming Prize in Japan.

9] Matt Damsker, "Fit for the Ritz," www.talentplus.com, March 2004.

 

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