Ritz-Carlton Hotels is a well known company with a good reputation globally especially when it comes to exemplary customer service. It has a unique corporate culture from other hotels and lodgings across the globe. Its guests are always given a royal treatment by exceptionally trained employees in every detailed standard. It also has a unique motto printed on employees cards; we are Ladies and Gentleman serving Ladies and Gentleman.
The company is currently operating a different customer approach it adopted in mid 2006; do not tell employees how to make guests happy . The old one was so prescriptive and scripted. The current approach is based on outcomes. However, this has not affected the companys goal which is to make a guest happy by rendering better services. In this new customer service philosophy, staff members react with the guests in a natural environment unlike in the old approach which seemed like they were reading from a book.
Cultural dimensions
The current organization culture at Ritz-Carlton can be described as outcome-oriented. Managers focus is more on results; the reason why they insist on pleasing a guest.
The manner in which employees do this is no longer the managers concern unlike in the old culture where employees were expected to follow laid down rules to reach this objective. The managers do not just expect the guests to be happy but also delighted by the services offered by the employees. The company executive also considers this during selection of new staff members.
The advantage of this culture is that executive focuses less on managing employees (Forssell, 2004). Once they have picked the right people, they give them the opportunity to spread their wings. They almost dont have to manage employees. However, this culture may omit certain aspects in the early stage that affect the overall performance of the organization because it only focuses on results (Robbins, 2011).
Another cultural dimension that has been taken by this organization since 2006 is people orientation. From the motto; we are Ladies and Gentleman serving Ladies and Gentleman , it is clear that the employees are also considered special by the organization.
This culture shows that it is not just the business that maters but also the employees who work tirelessly to ensure that guest receive a better treatment.
The success of a business does not necessarily mean building a market share but connecting to the target. This culture is important because employees who connect to the guests are already motivated to work. Another important aspect of this cultural dimension is that managers are always patient and factor every persons opinion before making any decision (Ballantine and Roberts, 2010).
The dangerous aspect of this approach, however, is that main purpose of a luxury hotel can be forgotten. It is so dangerous to prioritize on the employees needs more than the customers. It, therefore, becomes hard to determine who comes first. Even though the motto appears as if the two are treated equally, sticking this balance is never easy especially when a company wants to increase its revenue.
Qualities and skills needed at Ritz-Colton
I would wish to work at Ritz Carlton. As a new employee in a highly competitive industry, there would be need to polish and sharpen my communication skills. I will also have to be organized because that is all hospitality demands. Languages are another mandatory skill in the success of this industry.
Ritz-Colton is an upscale outlet hence there are chances of working with guests from different parts of the world. The success of this company, therefore, requires multi-lingual individuals. Having an ability to stay calm under pressure and also being able to work under strict deadlines also form part of required skills in this field.
The culture at Ritz-Colton
This organization has a strong culture because operations of employees are strongly influenced by the two cultural dimensions it has taken. The employees, for instance, have the motto of Ritz-Colton embedded on their cards to keep them on toes.
They have to abide by the organizations philosophies to ensure that objectives are reached. Due to these laid down principles, employees are committed to the organization. They also pledge their loyalty to the organization when they sign performances contracts and agree to treat their guest with dignity. This strong culture helps in recruiting an explicit team for a luxury hotel.
New members are highly scrutinized because they are supposed to meet the quality standards expected by the incoming guests. Socialization becomes easy because the culture binds them together thereby creating an opportunity of teamwork that increases productivity. Due to the fact that the employees easily identify with the organization, the sense of belonging is another motivating factor. In a luxury hotel, employees need to be motivated in order to afford a smile while handling the guests.
Conclusion
I would consider being a fourth wheel to this organization because it is so clear, from the motto, that Ritz-Colton treats its employees with the dignity they deserve. Such organizations provide a good natural environment for learning. The motto also shows that unity exist between the employees thereby creating a good and strong cultural environment for the team. With the high competition in this field, Ritz-Colton would be my choice of a workplace.
References
Ballantine, J. H., & Roberts, K. A. (2010). Our social world: Condensed version. Los Angeles, Calif: SAGE/Pine Forge Press
Forssell, D. C. (2004). Management and leadership: Insight for effective practice. Hayward, CA: Living Control Systems Publishing.
Robbins, S. P., & Robbins, S. P. (2011). Management. Harlow, England: Pearson Education.
Hospitality industry is a very special kind of services; it has to offer its clients something fresh and new, yet make its services homelike and cozy so that the clients would feel like choosing a particular company every time when they travel to a different state.
One of the most famous companies in hospitality industry, the Asian affiliate of the Ritz-Carlton Hotel Company, Portman Ritz-Carlton Hotel managed to develop a policy on human resources that has kept it afloat ever since. However, in the light of the recent economical changes, the services in the Portman Ritz-Carlton Hotel could use some innovations.
It is worth mentioning that the key problem concerning the Portman Ritz-Carlton Hotel concerns the interaction between the customers and the employees in the course of the problem analysis. According to the principles that the Portman Ritz-Carlton Hotel is guided by, the basic idea behind the interactions with the customer is that the support strives for not only providing the customer with appropriate services, but also making the communication process as smooth as possible, leaving a good impression.
However, some of the recent complaints concerned the quality of communication, as well as the quality of the provided services. Therefore, the current HRM principles of the Portman Ritz-Carlton Hotel need to be revisited.
Defining the problem, one must mention that the complaints concerning the communication process appear at the stage of the request filing and the maintenance check. Because of the dry manner in which the personnel address the customers’ problems, the latter feel that their requests have not been met fully and have not been taken proper care of.
To solve the problem, it can be suggested that the company should return to the principles, which the Portman Ritz-Carlton Hotel started with. As Cocinis put it, “The important question is: why do you want to join? Whatever they say, the most important notion needs to be ‘I enjoy working with people,’ not just using the phrase ‘I like people’” (Yeung 269).
Therefore, to improve the current services in the Portman Ritz-Carlton Hotel, it is necessary to reconsider the HRM practice and choose only the candidates who display the desire to work with people and help them, instead of picking the ones who merely have the required communication skills.
In addition, the process of providing the customer with the services must be shaped so that the customer could feel unique. Therefore, it is crucial that on the level of onstage contact, the introduction of the maintenance worker to the client should be carried out along with the filling out of the form regarding the maintenance process, the restatement of the problem, etc.
Thus, the client will be able to feel that his/her request and opinion is crucial for the company. In addition, with the help of the above-mentioned procedures, better maintenance results can be expected.
As long as the strategy towards food provision in the Ritz-Carlton Hotel changes towards a better organization of knowledge management system, the company will prosper. While the Portman Ritz-Carlton Hotel does face certain risks, especially in the light of the steep competition that will only keep rising, it can be assumed that the Ritz-Carlton Hotel Company will remain one of the greatest hotel chains in the Asian countries.
Works Cited
Yeung, Arthur. “Setting People up for Success: How the Portman Ritz-Carlton Hotel Gets the Best.” Human Resource Management 54.2 (2006): 267–75. Print.
Ritz-Carlton Hotels is a well known company with a good reputation globally especially when it comes to exemplary customer service. It has a unique corporate culture from other hotels and lodgings across the globe. Its guests are always given a royal treatment by exceptionally trained employees in every detailed standard. It also has a unique motto printed on employees’ cards; “we are Ladies and Gentleman serving Ladies and Gentleman.”
The company is currently operating a different customer approach it adopted in mid 2006; “do not tell employees how to make guests happy”. The old one was so prescriptive and scripted. The current approach is based on outcomes. However, this has not affected the company’s goal which is to make a guest happy by rendering better services. In this new customer service philosophy, staff members react with the guests in a natural environment unlike in the old approach which seemed like they were reading from a book.
Cultural dimensions
The current organization culture at Ritz-Carlton can be described as outcome-oriented. Managers’ focus is more on results; the reason why they insist on pleasing a guest.
The manner in which employees do this is no longer the managers’ concern unlike in the old culture where employees were expected to follow laid down rules to reach this objective. The managers do not just expect the guests to be happy but also delighted by the services offered by the employees. The company executive also considers this during selection of new staff members.
The advantage of this culture is that executive focuses less on managing employees (Forssell, 2004). Once they have picked the right people, they give them the opportunity to spread their wings. They almost don’t have to manage employees. However, this culture may omit certain aspects in the early stage that affect the overall performance of the organization because it only focuses on results (Robbins, 2011).
Another cultural dimension that has been taken by this organization since 2006 is people orientation. From the motto; “we are Ladies and Gentleman serving Ladies and Gentleman”, it is clear that the employees are also considered special by the organization.
This culture shows that it is not just the business that maters but also the employees who work tirelessly to ensure that guest receive a better treatment.
The success of a business does not necessarily mean building a market share but connecting to the target. This culture is important because employees who connect to the guests are already motivated to work. Another important aspect of this cultural dimension is that managers are always patient and factor every person’s opinion before making any decision (Ballantine and Roberts, 2010).
The dangerous aspect of this approach, however, is that main purpose of a luxury hotel can be forgotten. It is so dangerous to prioritize on the employees needs more than the customers. It, therefore, becomes hard to determine who comes first. Even though the motto appears as if the two are treated equally, sticking this balance is never easy especially when a company wants to increase its revenue.
Qualities and skills needed at Ritz-Colton
I would wish to work at Ritz Carlton. As a new employee in a highly competitive industry, there would be need to polish and sharpen my communication skills. I will also have to be organized because that is all hospitality demands. Languages are another mandatory skill in the success of this industry.
Ritz-Colton is an upscale outlet hence there are chances of working with guests from different parts of the world. The success of this company, therefore, requires multi-lingual individuals. Having an ability to stay calm under pressure and also being able to work under strict deadlines also form part of required skills in this field.
The culture at Ritz-Colton
This organization has a strong culture because operations of employees are strongly influenced by the two cultural dimensions it has taken. The employees, for instance, have the motto of Ritz-Colton embedded on their cards to keep them on toes.
They have to abide by the organization’s philosophies to ensure that objectives are reached. Due to these laid down principles, employees are committed to the organization. They also pledge their loyalty to the organization when they sign performances contracts and agree to treat their guest with dignity. This strong culture helps in recruiting an explicit team for a luxury hotel.
New members are highly scrutinized because they are supposed to meet the quality standards expected by the incoming guests. Socialization becomes easy because the culture binds them together thereby creating an opportunity of teamwork that increases productivity. Due to the fact that the employees easily identify with the organization, the sense of belonging is another motivating factor. In a luxury hotel, employees need to be motivated in order to afford a smile while handling the guests.
Conclusion
I would consider being a fourth wheel to this organization because it is so clear, from the motto, that Ritz-Colton treats its employees with the dignity they deserve. Such organizations provide a good natural environment for learning. The motto also shows that unity exist between the employees thereby creating a good and strong cultural environment for the team. With the high competition in this field, Ritz-Colton would be my choice of a workplace.
References
Ballantine, J. H., & Roberts, K. A. (2010). Our social world: Condensed version. Los Angeles, Calif: SAGE/Pine Forge Press
Forssell, D. C. (2004). Management and leadership: Insight for effective practice. Hayward, CA: Living Control Systems Publishing.
Robbins, S. P., & Robbins, S. P. (2011). Management. Harlow, England: Pearson Education.
Ritz-Carlton has been keen to match-up with competitive hotels in this industry. This firm has developed various strategies through which it can meet customers’ needs in a special way, and deliver high customer value. The firm has been keen on developing memorable customer experience in its normal operations.
It has developed 3 steps of value delivery and 12 guiding principles in its service delivery. According to De (2011), in order for a firm to match-up to the market competition, it is important for the management to define its organizational culture that would help guide the way employees serve customers.
This scholar further states that success of a firm is always based on the activities of its employees. This is because they are constantly in contact with customers. The value that customers will get is based on the actions of the employees. The management of this firm is well aware of this, and has developed polices that empowers employees to do everything that is within their powers to offer customers maximum value for their money.
One of the 12 principles that this firm uses among its employees states, “I am empowered to create a unique memorable and personal experiences for our customers,” (Kurtz & Boone, 2009). This means that this firm has been keen to appeal to emotions of the customers in a way that would deliver maximum value to them. In several occasions, this firm has gone out of its way to ensure that it offers its customers a unique value in their services. The services are personalized to meet specific needs of the customers.
One of the cases that clearly demonstrated the extent this firm can go to offer quality service was when an executive in this firm order a special product for a customer who needed it but was unavailable in the stores. The product had to be flown 1000 miles away to the hotel. This is a clear demonstration that Ritz-Carlton is committed to delivering value to its customers. A number of factors make the difference between the strategy used by this firm, and that of its competitors in offering value to the customers.
One of the differences is that this firm has set aside up to $ 2000 that any given employee can use to ensure that customers receive maximum satisfaction. The management has also been keen to sacrifice profitability for the sake of offering value to its customers. Each customer of the firm is treated as unique, with unique needs from other customers. The ‘wow stories’ has also been a unique strategy that has been useful in motivating employees to give the best value to their customers.
The management of Ritz-Carlton has created the ‘wow stories’ as a strategy that is used to motivate employees to go out of their way in delivering value to their customers. De (2011) says that it is always necessary to create an environment within a firm that would encourage competition among employees.
This scholar says that when employees are made to compete in service delivery, they will always make an effort to ensure that they offer the best service that is within their capacity. The ‘wow stories’ seeks to share exceptional performance exhibited by some of the employees in their normal operations.
In this strategy, the firm would always record exceptional performance of its employees on a daily basis with the view of getting to know how some of the employees went out of their way to offer value to their customers. On each particular day, all the wonder stories would be collected and the most exceptional one would be published for other employees. The firm will identify the employee who delivers such an exceptional service as a valuable person among other employees.
The strategy seeks to convince employees of Ritz-Carlton that they have all the powers to act uniquely in order to meet customer needs. The strategy has been very important in customer service for this luxury hotel. The strategy has created an environment for creativity and innovation within this firm. For instance, there is a case where the maintenance crew of this firm decided to construct a wooden walkway from the hotel to the beach and then developed a tent for a couple.
The couple was worried that they could not go to the beach because one of them was on a wheelchair and could not use the existing stairs (Kotler & Keller, 2012). This action pleased the customers so much that it was easy to predict the likelihood of them making another visit to the facility once again. This strategy makes the employees believe that it is within their powers to offer value to their customers in a special way. This has also helped employee remain motivated in this firm.
References
De, B. S. (2011). Managing cultural diversity. Maidenhead: Meyer & Meyer.
Ritz-Carlton Hotel is one of the leading hotels in Russia. According to Woodcock (2007, p. 73), the hotel was started in 1905 by Ritz Carlton as a series of restaurants that were run on board SS Amerika ocean liners. Carlton was determined to offer high value to its customers on board these ocean liners. As the firm developed, Carlton realized that his customers wanted high value for the products they purchased.
Most of the customers on board the liners were holiday makers. During this time, the rich would go on a voyage for general entertainment. People of the lower social class could not afford such voyages, and as Faulkner (2003, p. 67) states, it remained a preserve for the rich. The management of this firm learnt the dynamics of this market segment. It realized that this segment of the market was very keen on the value of products offered to them.
They did not mind paying high prices for these products as long as their quality was satisfactory. This is what defined Ritz-Carlton as a major player in the luxury hotel industry. When the World War One started in 1914, the firm had to move from the ocean liners to other facilities along the beaches in some major cities because voyages were no longer safe. Although the firm experienced some growth during this early, period, it was faced with a number of challenges that forced it out of the market.
In 1983, William Johnson bought the brand Ritz-Carlton and a few of its assets. Under his leadership, this firm experienced a massive growth not only in Europe, but also in some selected countries in Asia. Currently, the firm has worldwide market coverage, with 81 hotels in 26 countries.
Reports in their website show that their revenue for the year ending December 2012 was $ 3 billion. Its permanent employee base is also estimated to be over 38000 people, with many others employed indirectly. In Russia, it is one of the leading luxury hotels that are very popular with tourists from Britain, France and the United States.
Some of the products offered in this giant luxurious hotel include a variety of food, accommodation, travel services especially for the tourists, spa, and other entertainment services. The firm has remained focused on the higher end markets, and in Russia, it is considered one of the most expensive hotels. This has worked positively in strengthening its brand, because the rich believe that it is a symbol of class.
Description of the country
It has been mentioned that Ritz-Carlton operates in 26 countries around the world. However, this research will only focus on the Russian market. Russia is a federal state in Eastern Europe comprising 83 federal subjects (
Kumar & Reinartz 2011, p. 85). These scholars also observe that this is the largest country in the world. It has a population of 143 million people, making it one of the most populous nations in the world. The economy of this country was ranked sixth largest by purchasing power.
Some of these characteristics make the country very attractive for luxury products because a large segment of the market has the capacity to purchase these products. Ritz Hotel started in the West, but it has received acceptance among the local consumers because of the focus it gives on value. The high-end market segment in this country has come to appreciate the superiority of the brand Ritz-Carlton.
The brand Ritz has gained popularity among the rising population in Russia, especially due to its focus on meeting individual consumer demands. This market segment is relatively large, and this means that the firm has the capacity to expand its market share locally. Business environment is also very friendly. The federal government has eliminated most of the bottlenecks that strained few international firms that were operating locally.
The free market entry means that competition has been enhanced. Firms from other countries have the liberty to enter this market. Another favorable factor in this environment is that consumers always base their decision to buy, on the value associated with the brand, and not nationality of such a brand. This means that Ritz has equal chances of excelling in this industry just as other local Russian firms.
Using Customer Relationship Management to Improve Customer Experience
It has been mentioned that the Russian market for luxury products is increasingly becoming competitive. New firms are still making attempts to penetrate this market with superior products. They are aware that the top brands like Ritz are firmly in control. However, they are still determined to penetrate the market with high value products that exceeds customers’ expectations. This means that these top brands must determine ways of protecting their market share from such aggressive market rivals.
They must learn to maintain their current customer base while still making advances towards other new markets that were not covered before. The focus should be turned to customer relationship management. According to Grönroos (2007, p. 57), customers in this market segment are very sensitive when it comes to the quality of products they buy.
They prefer paying premium prices if they are assured of high quality products. Firms in this industry are trying to use various approaches to win over more customers from their competitors. They are using various models that can help them achieve a higher level of customer satisfaction. One of the models that have become very popular among this group is customer relationship management concept.
Customer relationship management is not a new concept in the market for high-end hotel industry. Although it had not been viewed as a new concept that can be used to give firms competitive advantage over their rivals, some of the players in this industry used it as a way of attracting and maintaining specific customers.
According to Hayes and Dredge (1998, p. 67), Ritz Carlton was one of the luxurious hotels that used this strategy without the knowledge that it could earn them admiration among a larger market segment. In Britain, the Royal family preferred visiting this hotel because of the superior value it offered, and the class with which it was associated. The management considered this an honor.
In order to enhance satisfaction of its customers from the royal family, this hotel assigned one of the guards the role of ringing a bell the moment any of its members was seen approaching the gates (Kelly 2006, p. 95). This was supposed to alert workers to prepare a table for these valued guests. To the management, it was meant to make its staff ready to receive the dignitaries. However, to the royal family, this was a symbol of class.
They loved the idea that the bell was specifically to announce their presence. It was a bell of class, meant to make people to be ready to receive the royal family. It worked magic in terms of attractive members of the royal family to this hotel. Some even started associating the hotel with the family, giving it even a more superior image in the market.
Customer relationship management is very important when selling luxurious products. The market has varying tastes and preferences, and firms that fail to identify this diversity are likely to lose a section of its customers.
For this reason, a firm must define its target segment and develop a deep understanding of what it needs. Rigby, Reichheld and Schefter (2002) say, “By defining the broader customer scenarios -and then managing them meticulously-companies can deliver much more value to buyers and reap much greater loyalty in return” (p. 1).
These scholars say that firms in this competitive and delicate industry must understand that the variation in customer tastes may offer them opportunity to diversify their products. This means that the diversity should not be looked at as a threat, but an opportunity to expand a firm’s operations.
The larger segment of the rich should be further segmented into smaller units with related demands. Each sub-segment should have consumers who share as much as possible in terms of their taste, preferences, and any other relevant demographic factor. Hawkins (2003, p. 34) calls this getting inside the lives of the customer. It involves a deliberate attempt to understand their specific needs, and define how this need may be met in the most appropriate method.
While many firms using this concept now prefer classifying their customers into sub-segment, there are cases where a more specific approach may be required of such a firm. Ritz Hotel in Moscow serves various consumers in the high end social class. Some of these customers are tourists who may not be served for a long time before getting back to their countries. However, such customers are always good ambassadors back in their country.
They can be used as evangelists to advertise the brand to these foreign countries, making it build a stronger image. The main problem that firms such as Ritz face is how to determine the exact tastes of such mobile customers so that the superior value needed may be offered. These are total strangers who may not easily be placed in any of the sub-segments that this firm has developed.
It means therefore, that the management would be forced to give such a client a more personal approach when delivering the product. It may even involve engaging the customer on his or her preferred cuisine. It may appear to be a costly approach to such a giant firm such as Ritz, but it is a strategy that can help it remain the preferred choice in the market. This is the strategy that has helped the firm maintain a positive image in the market.
According to Kracklauer (2004, p. 56), every customer in this firm is unique, and is always given personalized attention to enhance their satisfaction. Enhancing customer experience is not a simple process that only involves giving them what they want. It also includes involving them when delivering this value.
For instance, Ritz realized that giving its customers free bottled water before they made their order increased their level of satisfaction, making them order more expensive meals. However, this approach was quickly adopted by other top ranking hotels in this market. Ritz changed this strategy, and started asking its customers whether they would prefer milk, fruit juice, or water before they are served.
This is what is referred to as involving the customers in delivering superior experience (Guirdham 1972, p. 45). It erases the mentality that they are customers of this hotel, and in its place brings the impression that they are members of this family. As a valued member of the family, their opinion matter a lot when offering value to them.
Expected Changes in the Future Market
The market for luxury products is very dynamic, especially in developed countries like Russia. There are some changes that are expected to take place in this market in the near future, and it would be prudent if firms such as Ritz pay close attention to monitor them. One such change will be the increased relevance of technology in this industry. People of this class highly value time, and they are uncomfortable with the ideas of waiting for some time before their food can be served.
This may change in the near future with the help of technological invention. Firm would be forced to introduce a new item in their website, which is a complete menu of what they have. This way, customers will be able to order and pay for their meal while on their way towards the facility (Seybold 2001, p. 2). They will only need to identify the code given to approve the purchase and the meal would be presented in less than two minutes.
This means that these firms must be very keen to understand some of the modern trends brought by technological advancements. Another possible change may be in the entertainment sector. Currently, Ritz has a music system that plays soft background music to entertain customers while eating.
This will change in a near future because young adults are also finding themselves in the league of the super rich. They make substantial part of consumers in this segment. Their music taste cannot be the same as that of the aging population that were previously considered to control big estates in the country. The entertainment may take a more personal approach.
Firms in this industry may need to find a way in which music will be individualized in order to enhance customer experience. These customers will have the liberty of choosing the music they prefer, without interfering with the immediate neighbor. This would also require the use of the emerging technologies.
It was stated that a big percentage of customers served by this firm are tourists. Tourism is growing in this country, and this means that Ritz will continue receiving more guests. However, they may not prefer the current approach where they are forced to look for tour firms once they check into their rooms. It is clear that this class of customers prefer making most of their purchases in a single basket (Peppers, Rogers & Dorf 1999, p. 4).
This means that firms in this industry would need to expand line of their production to include a wide range of productions that their customers may require once they visit the country.
List of Reference
Faulkner, M 2003, Customer Management Excellence, John Wiley & Sons, Chichester.
Grönroos, C 2007, Service management and marketing: Customer management in service competition, Wiley, Chichester.
Hawkins, G 2003, Customer intelligence: The value of customers, the power of profits, Breezy Heights Publishers, Skaneateles.
Kelly, S 2006, Customer Intelligence: From Data to Dialogue, John Wiley & Sons, Chichester.
Kracklauer, A 2004, Collaborative customer relationship management: Taking CRM to the next level, with 7 tables, Springer, Berlin.
Kumar, V & Reinartz, W 2011, Customer Relationship Management: Concept, Strategy, and Tools, Springer Berlin, Berlin.
Peppers, D, Rogers, M & Dorf, B 1999, Is Your Company Ready For One-To-One Marketing? Harvard Business Review, pp. 151-160.
Rigby, D, Reichheld, F & Schefter, P 2002, Avoid the Perils of CRM. Harvard Business Review, pp. 101-108.
Seybold, P 2001, Get inside their Lives of Your Customers, Harvard Business Review, pp. 80-89.
Woodcock, N 2007, The customer management scorecard: Managing CRM for profit. Thomson Gale, Farmington Hills.
There are very many hotels in the world, and a great amount of them are five-star luxury hotels. The management of these hotels has an important job of retaining the best possible service and attracting new, as well as previous customers. Portman Ritz-Carlton Hotel, located in Shanghai, is considered to be one of the best in the business and has stayed afloat through many local and global problems.
Portman Ritz-Carlton Hotel is a part of the Shanghai Centre that consists of 3 buildings. The opening of the complex took place in 1990, with the buildings becoming a major attraction on the West Nanjing Road. The recent renovations have given the hotel a new and fresh look, and it is still considered to be one of the best places for business people and international travelers.
In the past, there have been some organizational problems and staffing issues. As the hotel was planned to be an international connection, the staffing had to be selected with great care. The structure of the employees had to be such that people from all over the world would feel comfortable, but majorly local population was dominant in the business.
One of the reasons that Ritz-Carlton has such a reputation is because it is a very “people-oriented” organization. As the business is based on the customers, and the service that is being provided, the relationship between the staff and clients is the key feature of such a business. There is a direct correlation between how the staff acts towards the visitors and how the visitors of the hotel will respond towards the staff and the hotel in general.
This greatly determines the return rate and the attraction of new customers. The Manager of the Portman Ritz-Carlton Hotel does the entire interview with the potential employees himself. Even though it is time-consuming, it allows for a selection of specific kind of people.
It is very noticeable when a person forces themselves to act nicely to others, and the response that they will receive is not going to be positive. But when a person is truly pleased in doing their job of helping the customer, the people will respond to that and enjoy their stay (Ulrich 14).
The relationship that exists in the Ritz-Carlton between the management, staff and clients is unique and hard to imitate. In the time of problems for the staff and hotel visitation, the management was able to understand the worsening situation and help the staff in any way it could. This reinforces the positive attitude towards the organization and creates a want for the staff to repay for such great treatment.
There is a limited amount of people in the world who can take true joy in life and accept everything with a positive attitude (Larkan 20). So, the people who can enjoy their workplace, communication with others and can do all this with a positive attitude are very valuable.
As the hotel market is very competitive, it would be hard for a rival manager to create the same conditions. But the key to success is finding the best-suited people for the job and the ability to establish a fair and positive relationship with the staff and the customers (Hassanien 9).
Ethics are extremely important in a business such as this. The key goal is to regulate the actions of corporation and employees about the surrounding natural environment, people and society’s laws and rules. Another reason why ethics is the right direction for any business is that honesty will be rewarded and the benefits gained from kindness will be much greater than those of lies and deceit. But very often, rules and laws are helpless in controlling the ever reaching negative actions of a business.
The laws are meant to better the society and conduction of businesses, representing the interest of the population to keep it from harm both physical and mental. Portman Ritz-Carlton Hotel has a high level of ethics and morality, as it treats the customers and employees with great respect. This is exactly what makes it such a valuable environment to work in.
The goal of human resources is to develop regulations as comprehensively as possible, touching upon every outcome by constant revision and investigation of the factors involved in such a delicate matter. This was the case with Portman Ritz-Carlton Hotel because it was able to adjust to the changing time and set criteria that must be followed by everyone equally.
With the current economy changing, especially at a worsening time, the market is becoming different. There are certain things that people need, so the demand on the market is special for every location. The global approach would guarantee a lot of choice and possibilities for the business. It is well known that consumers are the ones who most commonly dictate what is needed, but business owners and employees should also have morality and ability to defend their own rights.
To solve some present problems th, here are several avenues that could be taken. One possible way to achieve this would be to offer higher salaries, but in the current economic condition, this option is not always available. Since the hotel is an already established organization, some benefits could be offered. A complimentary stay in the hotel, in the time when business is slow, could be proposed. The rate will be lower if the staff stays for a longer period.
If the people who work at the hotel take ownership of the building and feel as if it is part of their life and their home, they will take great care in keeping it in order and best reputation. Another route to be taken is to offer paid vacations but at a lower salary. Employees will have a chance to take some time off, but they will still get paid, even if the amount is somewhat lower.
But most importantly, the international nature of the business should be explored, and people from other nations must be attracted to stay. This could take a form of lowering the rates for people from other countries or providing a package that includes extra use of facilities or discounts for close-by shopping malls.
Overall, the Portman Ritz-Carlton Hotel has made many adjustments, but the best treatment for its customers is one of the most important ones. A company that values the consumer will be the most successful. Every business that involves people must base their services on equality and adequate work compensation. An employee, who is happy and not forced to their workplace, will be more productive and thus will increase the success of the organization.
Works Cited
Hassanien, Ahmed. Hospitality business development. Burlington: Routledge, 2012. Print.
Larkan, Kerry. The talent war: How to find and retain the best people for your company. Tarrytown: Marshall Cavendish, 2009. Print.
Ulrich, Dave. Leadership in Asia: Challenges, opportunities, and strategies from top global leaders. New York: McGraw Hill Professional, 2010. Print.
The Ritz-Carlton luxury Hotel Company was opened as a multi-use $ 225 million complex facility in the historic Foggy Bottom district of Washington DC with 162 condominiums having three restaurants with 300 rooms and a1000 square foot sports club.
The history of Ritz-Carlton Hotel dates back to 1898 when Cesar Ritz opened the Carlton hotel in London. The hotel changed its name to Ritz-Carlton Hotel after it was purchased by Marriott international in 1987. That left Ritz-Carlton to be a management company administering 38 hotels as a fully owned subsidiary of Marriott international with Millennium partners being one of the businesses managed by the company. Ritz-Carlton’s primary growth strategy was to acquire new management contracts for resorts and hotels worldwide.
Ritz-Carlton’s sources of income were based on a levy of 3% of a company’s gross revenue and additional revenue was from land rents, franchise fees, profit sharing, and management incentives. Ritz-Carlton’s success was calculated by using the average daily rates and revenue from the available rooms.
The management of different companies entered into contracts with Ritz-Carlton property owners at acceptable interest rates that guaranteed high quality services by using highly skilled human resources. High quality was assured by using good quality processes, selecting the right sites to develop the hotels, customisation of services, employing highly skilled staff, and using effective personnel recruitments processes that were the hallmark of success using the best business practices.
To evaluate the success of the company, a seven day countdown was conducted when the hotel was opened consisting of leadership orientation, departmental vision sessions, and skills training. However, the seven day countdown did not prove to be a successful strategy.
The Ritz-Carlton Hotel Company takes the leading position in the world hotel industry, and it is the most successful competitor within the market. The progress of the company depends on following the definite strategy and principles developed to satisfy the needs of customers and to respond to the employees’ expectations.
Thus, the accents are made on the orientation toward customers and their individual and specific needs, on providing the service of the highest quality, on the successful human resources management, and on the effective leadership.
In their Application Summary of 1999, the company stated the basic principles according to which the development strategies are worked out. Thus, there are Ritz-Carlton Gold Standards which include the company’s credo, motto, three steps of service, and “Ritz-Carlton Basics” in which the standards of service are provided in detail (Application Summary, 1999). The strict dependence on these standards makes the company be one of the most successful hotels in the world which characteristic feature is the excellent quality of service.
According to the standards, the employees should create the positive atmosphere which is comfortable for guests and fulfill all the customers’ wishes (Application Summary, 1999). Professionalism as the basic characteristic of the staff is reflected in the company’s motto which is “We are Ladies and Gentlemen serving Ladies and Gentlemen” (Application Summary, 1999).
The employees’ professionalism should be felt in each action that is why much attention is paid to the etiquette, staff’s responsibility, positive communication, and expressing respect and dignity.
Moreover, it is accentuated in the case study on the company’s development that the company has the low employee turnover rate, and the good reputation depends on “a comprehensive employee screening process, significant employee orientation and ongoing training, and a high level of respect and trust in staff that leads to employee empowerment” (The Ritz-Carlton mystique, 2008).
It is important to note that the company’s annual turnover rate is lower than 20%, and these numbers can be discussed as minor for the hotel industry round the world (Sucher & McManus, 2005). Thus, the mentioned basics guarantee the company’s ongoing success within the market.
The quality of service is based on the training programs provided for employees. Sucher and McManus state that the recruitment process in the company is the developed strategy during which HR managers examine the candidates’ abilities and provide the necessary training to perform the functions successfully (Sucher & McManus, 2005).
The process of recruitment is known in the company as the Quality Selection Process. This process “includes a series of interviews that help to establish a behavioral profile” (The Ritz-Carlton mystique, 2008). The process is important in order to choose the persons who fit the position better. The next stage of the recruitment process is the orientation of the employees to the company’s standards and values.
All the employees should receive the training certificate after completing the training program. To provide the excellent service, it is necessary to realize the annual training certification (Application Summary, 1999). Furthermore, it is necessary not only to concentrate on the customers’ needs but also motivate employees to perform better.
The managers organize the work of employees with references to the employees’ rights, reward and recognition, and performance appraisal strategies. Moreover, the possibilities for the career progression are accentuated in the company. One of the most effective methods to stimulate and motivate the employees is the emphasis on the fact that “employees are also empowered to solve problems and make decisions that will result in extraordinary customer service” (The Ritz-Carlton mystique, 2008).
The employees are expected to provide the service of the highest level, and the assessment is realized according to the customers’ focused results. The important aspects are the individual customer’s satisfaction and constructive feedback (Application Summary, 1999). Furthermore, the leaders pay much attention to the organization of the human resources management as the significant aspect in providing the qualitative service.
However, the Ritz-Carlton Hotels’ reputation depends not only on the quality of the service but also on the effective leadership. Any strategies which are developed and implemented in the company are worked out according to the definite outline. Thus, the first stage is the development of the approach plan in which the goals and operations are stated.
The next stage can be discussed as the deployment “do” during which the certain strategy is realized according to the fixed points. The leaders and managers focus on the stage when it is possible to check the effectiveness of the results and make conclusions about the further realization of the similar plans. To guarantee the highest results during the realization of the next section or plan, it is important to pay much attention to the improvement actions (Application Summary, 1999).
The success and reputation of the Ritz-Carlton Hotel Company significantly depends on the developed standards of service quality, on the highly-trained personnel, on the effective work of the human resources managers, on the orientation both to the customers and employees, and on the effective leadership strategies.
References
Application Summary: The Ritz-Carlton Hotel Company. (1999). Web.
Sucher, S. J., & McManus, S. E. (2005). The Ritz-Carlton Hotel Company. Web.
The Ritz-Carlton mystique: Professionalism, high expectations. (2008). Web.
Ritz-Carlton is one of the leading companies in the hospitality industry, with branches across the world. The corporation is an auxiliary of the Ritz-Carlton hotels, which runs over eighty-four sumptuousness hotels and resorts in main cities internationally. The company was formed in 1983 following the merger with another company with similar name that operated in Atlanta Georgia.
Presently, the organization is an ancillary of an international company referred to as Marriott International, which is known for its value and established monetary ability. A brief history of the corporation illustrates that it was created by a Swiss proprietor known as Cesar Ritz, who was an expert in matters related to hospitality, having been named the emperor of the hoteliers following his achievements in the industry.
Through his hospitality managerial skills, Ritz redefined luxury accommodation in various parts of the world that the hotel operated. The company entered into partnerships with several merchants with an aim of increasing the market share and strengthening the financial power. The first branch of the hotel was launched in the US in 1911.
Before the First World War, the company had developed roots in the United States and other parts of the world, particularly Europe, but its operations were greatly hampered by the war. The founder, Ritz, died in 1918 just before the conclusion of the First World War, but his wife took over the management of the organization.
Even though the company went through a number of challenges, such as the interruptions associated with First World War and the Great Depression, it is currently one of the best in the hospitality industry. This paper discusses several aspects of the company, including its interaction with customers, the strategy it employs, and its power to create distinguished ladies and gentlemen only seven days.
Ritz Carlton Experience
Recently, Ritz Carlton published a book that outlines some of the strategies that it employs in satisfying its esteemed customers. The book states that the use of Gold Standard is one of the strategies that play a critical role as far as delivery of quality service is concerned. Gold Standard is known to boost staff and customer loyalty, improve customer engagement processes, and development of the brand.
Additionally, the strategy offers customer and non-customer handling employees an opportunity to offer services based on their viewpoints and perspectives. The book shares the wisdom of the leadership of Ritz Carlton Company implying that the experience with the organization is positive.
The management is always concerned with hiring competent employees through a rigorous recruiting procedure that culminates to an extensive training process that brings out leaders with transformational leadership experience. Since the organization is concerned with excellence, it offers a responsible stewarding icon in the ever-competitive market.
This implies that the organization is quick to adjust its operations based on the changing needs of the customer and the hospitality industry in general. Ritz Carlton has been a market leader for several years owing to its capability to plan, find the best location for business, and enhance quality.
The views of many customers suggest that the experience of the company is characterized by service value implying that the type of products that the company offers to its customers is incomparable.
The organization has established partnerships with other market leaders in related industries, such as the airlines industry whereby it has a strong relationship with the world’s known airline companies, such as the Virgin Atlantic, the Guardian Angel, and Emirates Airlines. The services of the company are based on value addition meaning that the customer must notice the difference once he or she tries the service.
In the modern society, many people do not care about spending their money, as long as they are satisfied with the service offered. Based on this, the company is able to expand to an extent of overthrowing market leaders even in new regions.
One of the Ritz Carlton’s partners, chief marketing officer of community agency Colleen Brinkmann, compares the company with the Lexus since it sets its own standards in the market, which cannot be attained by competitors. In other words, other players in the industry are left imitating what the company does. Based on this, the essence of the experience with the company is personal, genuine, lively, courteous, and congenial.
The organization takes care of its clients and employees knowing that it cannot achieve its desired goals and objectives without them. Ritz Carlton has been engaging in various charitable activities, including promoting the welfare of the community. It played a critical role in shaping the life of a young girl named Natalie who was in need of urgent help to cure her condition.
It is concluded in this section that the experience of Ritz Carlton is based on strong leadership skills and commitment that believes in quality and respect for others. The organization is believed to be a legend in the hospitality industry due to its contribution to boost quality service. The experience of the company generates a luxuries lifestyle that gives opportunities to the hopeless customers.
Capabilities of Ritz Carlton and Major Strategies
The company is a multinational organization with various branches worldwide implying that it enjoys the economies of scale. It is able to produce goods and services at low prices given the fact that its financial potential is unmatched in the current hospitality market globally. Recently, it acquired properties worth billions of dollars, which have given it the much-needed financial power to outmuscle its competitors.
An organization operating at a global level has an opportunity of employing technology to boost sales and marketing strategies. The management underscores the fact that technology determines the success of any organization in the digital world. In this regard, technology is used in advertising the organization’s products and services.
For instance, the social media is employed effectively promoting the company’s products and services. Apart from technological and financial capabilities, the company is well endowed with competent staff that is highly trained and equipped with modern managerial skills.
Based on this, the type of leadership applied in the organization is transformation implying that the views and opinions of each employee are incorporated into the major decision-making mechanisms. Each employee is guided by the organization’s principles, which are believed to be strong and constructive when it comes to human resources management.
For instance, the first principle urges the employee to build strong relationships with other organizational members, which is known to attract customers.
Additionally, each employee is charged with the responsibility of ensuring that the expressed and unexpressed wishes and desires of the client are met. This means that all workers ought to be responsive to the needs of customers. These principles put the organization in an advantaged position as far as competition is concerned.
Through a well-established social corporate responsibility principle, the community acknowledges the organization for its service. In fact, many organizations have failed to achieve this when engaging with the community. When dealing with clients and the societal members in general, the organization insists on the three steps of service delivery.
The first step is welcoming the client with a sincere and warm greeting. In fact, the management maintains that the use of the client’s name in addressing him or her is critical since it develops a rapport. One of the customers who visited hotel’s branches was surprised with the service he received because the crew called his name several times.
Studies show that designing a business strategy is very simple, but the problem lies with its implementation. Therefore, Ritz Carlton is believed to be an able organization as far as policy implementation is concerned. As early noted, the organization executes a policy easily because it does not have a long chain of command, which is usually accused of delaying the implementation process.
An additional strategy is related to fulfilling the needs of the client in the best way possible. Based on this, the employee is urged to anticipate for any eventuality when dealing with the client and come up with the best approach to address the problem. In this case, the employee is expected to ask many questions whereby the response is recorded for future utilization.
Before concluding this action, it is imperative to review some of the Ritz Carlton’s regulations that guide the conduct of employees. The organization is respected for retaining employees since this is a challenge to many organizations. The management appreciates that cleanliness is fundamental in the hospitality industry hence it is the task of each employee to maintain a safe and accident free environment.
Additionally, each employee is expected to protect the privacy and security of clients, colleagues, and the organization in general. However, the organization appreciates cultural diversity, which is indeed an additional strength of the organization that has helped it maintain high standards in the hospitality industry.
Finally, the organization urges each member of staff to be involved in continuous learning process because this plays a role in personal growth.
How Ritz Carlton Creates Ladies and Gentlemen
The idea that Ritz Carlton has an ability of creating real women and men in just seven days is true given the fact that it offers matchless service in the current hospitality market. First, the statement can perhaps be viewed from the human resource perspective since the organization offers the type of training that cannot be compared to any other.
The process of recruitment, training, and orienting its staff is of high quality, which aims at producing the complete employee who has the ability to convene the needs of the client. On the other hand, the statement can be analyzed from the client perspective since the satisfied customer will always want to come back. Additionally, people are known to pay for quality services without complaining.
In the modern society, a real man or woman is supposed to behave in a manner suggesting that he or she is well informed, knowledgeable, and educated. With the services offered at Ritz Carlton, the client is likely to behave in a manner suggesting that he or she is well informed and knowledgeable.
The Ritz-Carton hotel company was founded by Cesar Ritz in 1898 who he opened his first Carton Hotel in London. Cesar Ritz vision was to offer excellent personalized services that satisfied the most discerning guests. Johnson Company bought the rights to the Ritz-Carlton in 1983 and ran the North American hotels.
Ritz-Carlton became a management company in 2000 and operated 38 hotels and resorts across the world. Ritz-Carlton hotel and Four Seasons are competitors in the hospitality industry. Some of the hotels and resorts under the management of Ritz-Carlton and Four Seasons were owned by Millennium Partners because they participated in the construction of the luxury apartments and complexes. Measuring growth rate of Ritz-Carlton was through ownership of the hospitality businesses globally.
The business model of Ritz-Carlton hotel involved measuring the average daily rate (ADR) and the revenue per available room (RevPAR). The passionate respect enabled the company to have a turnover of over 25% during its first sixty days in operation. In the beginning, the operational managers had a difficult task to develope a unique and eye-catching design of opening the new hotel.
The property evaluation and marketing modifications took place through a roundtable discussion. Personnel recruitment took two days from 8:00 a.m. to 8.00 p.m, after that 400 people were selected. The orientation process took seven days before the official opening of the hotel in 2000. The main aim of the staff orientation was to learn the hotel service philosophy, handling customers’ requests, and the company’s vision. The major dilemma McBride faced was whether the orientation period was worthwhile the company’s benefits.
The Ritz-Carlton: Using Information Systems to Better Serve the Customer
The Ritz-Carlton hotel aimed at providing the highest quality standards to its visiting guests. The expansion plans within the business made the management team develop a method of accounting for the gaming revenues. A suggestion of using information system in managing the streaming guests helped to provide personalised services at the Ritz-Carlton.
In addition, the information system strategy helped maintain the stiff competition from other similar companies offering hospitality services. The two major information systems that had positive effect on opetation of Ritz-Carlton hotel included modifications of COVIA and Encore. COVIA handled international reservations while Encore handled local systems.
The management team kept good records of the guests, since COVIA acted as a database and a support centre. Encore handled all management issues of the hotel and gave updates on the guests’ preferences. The integration of the two systems assisted in offering quality services to the Ritz-Carlton guests.
The power of the information technologies broadened the marketing strategy of the hotel and assisted in the frequent updates of new management applications. For example, the management team of the hotel integrated the new updates of the revenue yield system in the COVIA and Encore information system. Moreover, the information systems provided a user friendly graphic interface with the Ritz-Carlton customers.
The staffs at the Ritz-Carlton hotel positively embraced the new information system since it reduced the daily workload. The COVIA and Encore information systems served all the Ritz-Carlton Hotel Companies in different locations. The hotels easily conversed and developed systematic plans. The systematic plans helped in offering similar services in all the Ritz-Carlton hotels. The future prospects of Ritz-Carlton information systems software would be to record repeat guests automatically as valued and known guests.