Employee Training & Development at Ritz-Carlton: Fostering an Exceptional Customer Service Culture
| Case Code: HROB165 Case Length: 15 Pages Period: 2000-2013 Pub Date: 2014 Teaching Note: Available |
Price: Rs.400 Organization: Ritz Carlton Industry: Hospitality Countries: US; Global Themes: Training and Development, Organizational Culture, Organizational Behavior, Customer Service |
Abstract Case Intro 1 Case Intro 2 Excerpts
About Ritz-Carlton
The Ritz-Carlton Hotel Company, LLC, headquartered in Chevy Chase, Maryland, USA, was a wholly-owned subsidiary of Marriott International, Inc. As of September 2013, it operated 80 hotels and resorts in the Americas, Europe, Asia, the Middle East, Africa, and the Caribbean, with 30 more projects under development across the globe. The company had revenue of US$3billion for the year 2012. Ritz-Carlton was known for the luxury and world-class service its hotels offered to guests.
Further, it was the only service company to have earned the prestigious Malcolm Baldrige National Quality Award twice – in 1992 and in 1999. In addition to this, the company had earned many other awards and certifications in recognition of its quality excellence and achievements. The foundation for Ritz-Carlton’s service quality excellence was laid in 1898 when Cesar Ritz, a Swiss hotelier (known as the 'king of hoteliers and hotelier to kings'), opened the first Ritz hotel in Paris. Prior to this, Cesar Ritz had worked in several well-known hotels.He had definite ideas about what constituted a good hotel and he designed the Ritz Paris in keeping with these ideas. The hotel turned out to be one of the most elegant hotels of the time and became a great favorite with the wealthy and aristocratic members of society due to its design, furnishings, and meticulous service. During the early 1900s, Cesar Ritz focused on expanding the Ritz hotels across Europe. He opened the Carlton hotel in London during the same time. To franchise the Ritz-Carlton name and logo, he also set up the Ritz-Carlton Management Corporation (RCMC), which set the service and culinary standards that had to be adhered to by the franchisees.
In 1918, Cesar Ritz died and his wife continued to manage RCMC. In 1927, the first Ritz-Carlton in the US was established in Boston.Several others followed –in New York , Philadelphia, Pittsburgh, Atlantic City, and Boca Raton in the US and also across Europe. However, between the late 1920s and the 1940s, the business suffered a downturn due to the Great Depression and World War II (1939-1945). All the hotels, except the Boston Ritz-Carlton (set up in 1927), went bankrupt. After World War II, Charles Ritz, Cesar Ritz’s son, took over the management of RCMC. He franchised the name to several new investors in Europe, as the European luxury hotel business had recovered quickly.
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