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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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...

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

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...

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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