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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Excerpts Contd...
HR Practices and Work Culture Contd...
Ongoing Training
After the first year, employees received an average of 100 hours of training
every year. Equal importance was given to imparting technical skills and helping
employees assimilate Ritz-Carlton's culture. The company conducted workshops and
classes on a monthly or quarterly basis on subjects like 'Appreciating
Individual Differences,' 'Planning and Running Team Meetings,' 'Assessing Your
Co-worker's Performance,' etc...
Employee Empowerment
All employees of the company, regardless of position or rank, were empowered to
spend up to $2,000 of the company's money to correct a problem or handle a
complaint, without having to ask permission from a superior...
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Cultural Impact
Analysts were of the opinion that although Ritz-Carlton's salaries were not
significantly higher than those of other comparable organizations in the
hospitality industry, the company was a preferred employer because of its
organizational culture and the way it treated its employees. Ritz-Carlton's
organizational culture not only helped the company provide exemplary
customer service, but also created an atmosphere where employees felt
valued...
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A Cultural Shift
In mid-2006, Ritz-Carlton initiated what analysts called a 'cultural
shift' to make the hotel and the customer experience it provided
more contemporary. The initiative was reportedly prompted by the
realization that Ritz-Carlton's customer profile had changed
significantly over the years, and that the hotel's adherence to an
extreme degree of formality was likely to put off the new breed of
customers. (The average age of a Ritz-Carlton guest had come down
from 59 years in the mid 1990s, to 47 years by the mid 2000s)... |
Exhibits
Exhibit I: The Marriott Group
Exhibit II: Key Numbers for Ritz-Carlton
Exhibit III: The Ritz-Carlton Gold Standards
Exhibit IV: The Malcolm Baldrige Award Criteria
Exhibit V: Baldrige award Winners 1998-2006
Exhibit VI: Ritz-Carlton's New Key Service Values
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