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

The Quest for Quality Improvement

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...

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

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...

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...

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