Abstract:
The Ritz-Carlton hotel chain is famous for its excellent service and for providingcustomers with the experience of a lifetime. In his Harvard Business Review article,Paul Hemp describes techniques used by the company to train employees with itsspecial service philosophy. New employees are chosen for their particular qualities –including a willingness to serve others, drive and enthusiasm, and an optimistic attitude.Each employee always carries a fold-out card, covering the company’s Gold Standards – an array of service principles. Training sets about bringing these principles to life andgiving them meaning.
Ritz-Carlton's Human ResourceManagement Practices and Work Culture: The Foundation of anExceptional Service Organization
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Case Details:
Case Code : HROB100Case Length : 23 PagesPeriod : 1983-2007Pub Date : 2007 Teaching Note : Not AvailableOrganization : The Ritz-CarltonHotel Company LLCIndustry : Hotels and HospitalityCountries : US To download
Ritz-Carlton'sHuman Resource ManagementPractices and Work Culture:The Foundation of anExceptional ServiceOrganization
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Excerpts Contd...
HR Practices and Work Culture Contd...
Ongoing Training
After the first year, employeesreceived an average of 100hours of training every year.Equal importance was givento imparting technical skillsand helping employeesassimilate Ritz-Carlton'sculture. The companyconducted workshops andclasses on a monthly orquarterly basis on subjectslike 'Appreciating IndividualDifferences,' 'Planning andRunning Team Meetings,''Assessing Your Co-worker'sPerformance,' etc...
Employee Empowerment
All employees of the
company, regardless of position or rank, wereempowered to spend up to$2,000 of the company'smoney to correct a problemor handle a complaint,without having to askpermission from a superior...
Cultural Impact
Analysts were of the opinion that although Ritz-Carlton'ssalaries were not significantly higher than those of othercomparable organizations in the hospitality industry, thecompany was a preferred employer because of itsorganizational culture and the way it treated itsemployees. Ritz-Carlton's organizational culture not onlyhelped the company provide exemplary customer service,but also created an atmosphere where employees feltvalued...
A Cultural Shift
In mid-2006, Ritz-Carltoninitiated what analysts calleda 'cultural shift' to make thehotel and the customerexperience it provided morecontemporary. The initiativewas reportedly prompted bythe realization that Ritz-Carlton's customer profile hadchanged significantly over theyears, and that the hotel'sadherence to an extremedegree of formality was likelyto put off the new breed of customers. (The average ageof a Ritz-Carlton guest hadcome down from 59 years inthe mid 1990s, to 47 years bythe mid 2000s)...
Code: HROB100)
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