How the Ritz-Carlton Excels in Hr Practices

Only available on StudyMode
  • Download(s) : 372
  • Published : March 26, 2012
Open Document
Text Preview
The Ritz-Carlton brands itself as more than just five star luxury; it sees itself as a lifestyle brand where talent is embraced and a place of opportunity and growth (The Ritz-Carlton, 2011). Ritz-Carlton has been known since the beginning for high quality service and refined elegance which has developed over the years into contemporary luxury. The hotel chain has always strived for quality improvement, of not only its external brand, but its internal brand and puts a high value of its employees, saying, “we are Ladies and Gentlemen serving Ladies and Gentlemen” (Regani, 2007). From the creation of the Ritz-Carlton name, top quality service was a priority and after Johnson Properties bought the global rights to the name Ritz- Carlton in 1988, the company set about reinforcing and investing in this principle in order to become an employer of choice. The huge investment into this area paid off and in 1992 Ritz-Carlton won the Baldrige Award; the first hotel to do so. Since then the chain has won multiple awards such as best employer in the Middle- East and best employer in Singapore by Hewitt Associates (The Ritz-Carlton, 2011). The Ritz- Carlton has a global reputation and believes it is a leader in the luxury hotel market. It forms this reputation and culture, which is unique, by following the Ritz- Carlton model of three steps. The first being location, followed by building a physical product that is desired by its customer and satisfies their needs. The third is the people they hire; the ladies and gentlemen. Without these people the company would not be who it is; it believes they are the life behind the concept (Reiss, 2009). Along with the strong culture of service excellence, Ritz-Carlton also is sure to measure its success in order to continue in the improvement of quality. This was first adopted after it failed to win the Baldrige award the first time after it had correct procedures in place, however, it did not have the ability to measure and analyse the performance in order to use the information gathered for progression. After this the company began to measure each individual work area in order to improve efficiency (Regani, 2007). As the company places such great importance on satisfying the customers every need, in 2005 they launched Mystique; a customer data collection system unique to the company. This CRM programme tracks information on guests such as their preferences, number of visits and any other information of importance; all information is added by staff and left to their discretion to how much data is added to expand the system (Michelli, 2008). By using such a system, Ritz-Carlton aims to satisfy the guest without them having to ask, giving the staff the power to use the information they have to please guest; Ritz-Carlton calls this script-less service, as it give the employees the power to make decisions and become their own leaders (McKinney, 2011). Employees are also allowed to spend up to $2000 on a guest in order to resolve any problems or to create a unique experience; through this a unique culture of trust is built (Reiss, 2009). Ritz-Carlton also takes great care recruiting and selecting employees and not just hiring them, and have different procedures in comparison to its competitors in order to find the right people to create the best service and to give them to proper tools to do so (Regani, 2007). Only around 2% of potential candidates are hired, and once within the company are given opportunities to further their carer with training and development, which in turn, helps reduce staff turnover and improve satisfaction (Reiss, 2009). The company believes when searching for a career at Ritz-Carlton, it is ambition meeting empowerment as well as striving to be an equal opportunity employer, in order to have a sustainable and inclusive culture (The Ritz-Carlton, 2011). The process involves first the benchmarking, by studying the top performers in the chain and in other industries with...