Ritz-Carlton: Employees and People. Ken Williams. Supervision in the Hospitality Industry Inst: Jon Warner Summer 2014

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1 Page 1 of 5 Ritz-Carlton: Employees and People Ken Williams Supervision in the Hospitality Industry Inst: Jon Warner Summer 2014

2 Page 2 of 5 Traditional business management types, generally, are catered to the selling of a product. At its base, to either increase income by producing and marketing a higher quality product to a smaller few or, to increase income by producing and marketing a lower quality product to a larger many. Traditionally, with a view towards tangible products of sale, this is how business management is approached; to keep all costs down while keeping markups high. In the hospitality industry, however, which sells mostly intangible services and experiences, where other industries would presumably decrease quality, increase production and increase profitability. The hospitality industry, generally, does not. Being an experience reliant industry quality of service is turned into financial profits. A worthwhile example of quality management in a hospitality organization are the properties of the Ritz-Carlton. Whereas the traditional view of bureaucracy and organization is that of a structural pyramid. A type that approaches hierarchy upwardly with the assumption that the lower blocks are meant to support the higher blocks in an upward progression of status and importance. The Ritz-Carlton, conversely, approaches the same in an opposite manner. To the Ritz customer satisfaction is paramount not necessarily owner satisfaction. Such is shown in the words of the Ritz COO at an employee training introduction. Hello, I m Horst Schulze. I m the president, and I m a very important person around here (a long pause to let that sink in.) But, so are you. In fact you are more important to customers than I am. If you don t show up we re in trouble. If I don t show up, hardly anyone would notice. (Patrica, Galagan. "Putting on the Ritz." Training & Development 47: 40. Academic Search Premier. Web. 21 July 2014.) In conformance to the company s reputation quality is of most importance. And, is exemplified in the way they approach their business. The Ritz conforms to the management type of Total Quality Management. So, how do they conform to it? Firstly, what is total quality Management? In its most basic form, management is approached through several steps, With a

3 Page 3 of 5 focus on quality as the first important step, he [ (Deming)] said the following chain of events occur: quality improves, costs decrease, productivity improves, market share increases, business grows and more jobs are provided. The chain reaction can not be sustained without continuous improvement of all systems for the long term. (Paul, Kiesow. "Deming chain reaction.." Ceramic Industry 145: 21. Business Source Premier. Web. 21 July 0201.) The Ritz s mindset to quality, the keystone of their success, is shown in their mission statement, their Credo. Which is, The Ritz- Carton hotel is a place where the genuine care and comfort of our guests is our highest mission. We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm relaxed yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests. (Arthur, Yeung. "Setting people up for success: How the Portman Ritz-Carlton hotel gets the best from its people." Human Resource Management 45: 2. Business Source Premier. Web. 21 July 0014.) Well shown in their credo is the pointed attention to guest experience. Experience is not a tangible item to sell. Experience is intangible, and highly individualized, and therefor extremely labor intensive to produce and translate into profits. This being so, as experience is of scaled individual guest preference, so too must employee training be of top priority as employees are in direct contact with guests and so are a part of their experience. The Ritz views their employees differently than traditional business would. Where financially labor in production is seen as an expense, the Ritz sees their labor/employees as a great asset an asset to constantly be improved. To produce the best in Ritz employees the company instills a technique they call the 6 P s. The 6P s concept typically creates a vision of well-being, which results from the purchase of Ritz-Carlton products genuine care, comfort and prestige. By disseminating this information into the marketplace, we reinforce an aura of competence. After we gain a full understanding of our market segments, customers and their relative priorities, we develop and distribute, internally, a 6P s concept. The concept consist of: (1) Problem or need of the Customer (2) Product (what is it) (3) Promises (what it can do for the

4 Page 4 of 5 customer) (4) Personal Advantage (what can the customer do because of it) (5) Positioning (the benefit of it versus the competition) and (6) Price/Value (what the customer must give up in time or money to get it) these concepts lay the groundwork for process design. (Arthur, Yeung. "Setting people up for success: How the Portman Ritz- Carlton hotel gets the best from its people." Human Resource Management 45: 2. Business Source Premier. Web. 21 July 0014.) The Ritz credo and their 6 P s concept show a portion of their ever evolving attention to guestsatisfaction and employee preparation. However, even to a greater extent in appreciation of their employees is in how they view their employees. We see this in that the company actually makes a promise to their employees, not necessarily the other way around. They promise, At the Ritz-Carlton, our ladies and Gentlemen are the most important resource in our service commitment to our guests. By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company. The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and the Ritz-Carlton mystique is strengthened.. (Arthur, Yeung. "Setting people up for success: How the Portman Ritz-Carlton hotel gets the best from its people." Human Resource Management 45: 2. Business Source Premier. Web. 21 July 0014.) What is great about the way the Ritz-Carlton goes about business is in that they do not conform to the old and worn out cliché that it s business, not personal, but that instead to them as a hospitality industry company that it is business and so it is personal. The Ritz-Carlton s modes of conducting their business internally could easily produce, upon analysis, a long research paper and conceivably a book, two and a half pages hardly conveys their excellence. Even still, with their following of Total-Quality-Management philosophies the Ritz-Carlton is a fine example of a company to look towards in creating a company organization of quality. Not in that they are focused on only money and shareholder interests but that instead they focus their attention on people, through their attention to creating the best experience possible for their guests and in the status and promise they give to their employees.

5 Page 5 of 5 Bibliography: Patrica, Galagan. "Putting on the Ritz." Training & Development 47: 40. Academic Search Premier. Web. 21 July Paul, Kiesow. "Deming chain reaction.." Ceramic Industry 145: 21. Business Source Premier. Web. 21 July Arthur, Yeung. "Setting people up for success: How the Portman Ritz-Carlton hotel gets the best from its people." Human Resource Management 45: 2,. Business Source Premier. Web. 21 July 0014.