Case Analysis

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Guiring, Ramon

SERVICE QUALITY AT THE RITZ-CARLTON HOTEL COMPANY, L.L.C.

1. What value does a focus on the Gold Standards have for The Ritz-Carlton?

Service quality for Ritz-Carlton Hotel was not that too complicated to understand. To be analyzed over-all, the company just focused into two kinds of people who were involved: CUSTOMERS and EMPLOYEES. The service quality of Ritz-Carlton was like in a cycle between the ends of spectrum through information technology, which is one of the company’s strength. The so called Gold Standards that the Ritz-Carlton having was the very output of their: “Three Steps of Service”, “Motto” and “Credo”. Through this, the company achieved the company’s long-term vision. The company had a formal strategic process that sets business directions. Ritz-Carlton hotel believed that achieving their customer’s satisfaction need this Gold standards that would be their benchmark on their business in providing service in every client or customers. They give attention to employee performance, where, they were aggressively communicated thru their information technology and internalized at all levels of the organization. The employees were allowed to think and act independently with innovation for both internal and external benefit. By the regular reviews that the company conducting to ensure its consistency of good quality service and then achieving this Gold Standards, the company learned much more of information. Ritz-Carlton Hotel discovered the rate of turnover was high. Thus, the company looked for the rational and actions to prevent the increase. The Ritz-Carlton had a process to overcome cultural resistance to change. As well, employee satisfaction issues were resolved which made the company’s exceeded its benchmark, from decision making, empowerment, communication up to teamwork. Those changes and giving value to the employees made the company into the top having the Baldrige Award for the second time. The customer’s satisfaction been met which exceed a significant margin resulted an increase in their total revenue, thus, Return of Investment (ROI) improved. As well, the application process became much faster. The Ritz-Carlton’s Gold Standards made value a lot to its success. It not just met its mission and vision as a company, which was to provide excellent service for customer’s satisfaction but also resolved its other issues concerning even about its employees satisfaction. This made Ritz-Carlton realize more the value of a single idea and quality improvement effort. What must the company do to reduce job offer processing time so dramatically?

2. What must a company do to reduce job offer processing time dramatically?

Most of the companies were very much focus only to customers of how to make them satisfied, believing that it would bring the company to excellence. It’s hard to produce an excellent output having a poor input, because how could a company produce or provide a high quality products or service if the inputs that who will be producing or providing are neglected. The Ritz-Carlton was so good to give importance in the role of each employees in the achieving its company’s goals. Not a doubt that Ritz-Carlton succeeded in achieving its goal, because the company did their mission together with its employees. Giving them attention in training them, evaluating, and making them responsible in company’s success were became good ways on their quality improvement. As well, the job offer processing made possible to make it to 1-day processing from previously 21 days in three years. Reducing this time of processing needs focus on employees. A company must have a separate department in which will take charge for the processing. The guideline must stick on the qualification to filter and identify carefully who are really qualified. A mock interview is a way to lessen the time. A well organize and good system design are keys to reduce the processing time but not sacrificing the...
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