Summary
Ritz-Carlton Hotel Company, L.L.C is an American multinational corporation that operates the luxury Ritz-Carlton hotel chain and is one of the oldest hotel companies in the world. Founded in the Late 80s by Cesar Ritz, it has numerous luxury hotels and resorts in more than 30 countries and has become one of the most famous and valuable hotel chains in the world, as well as being named the best hotel in the Asia-Pacific region. Ritz-Carlton was the first service business to receive two “Malcolm Baldrige National Quality Awards”, and “Training Magazine” has called it the best company in the nation for employee training. It is known not only for the highest quality of service and great respect for customers (Customer Satisfaction), but also for the perfect integration of business and employee-centered practices. The business model of this company is basically based on providing quality services to its customers, which include predicting the needs of guests, hotel cleanliness, guest room conditions and assignments, solving customer problems and many other possessions. The company also focuses on human resource development and manpower creation and uses a seven-day countdown to train new staff and prepare new hotels for service. Although the company faced a number of challenges, including breakdowns and the “Great Depression”, it is currently one of the best in the hospitality industry.
Q1/1: Evaluate the effectiveness of the Ritz’s training and development system.
The effectiveness of training and development can be measured through the services provided by Ritz-Carlton and analyzed by examining the well-known four-step evaluation system. Reaction, learning, behavior and results. As a service organization, Ritz-Carlton realized that the quality of its ultimate service is as great as the people who provide it. Thus, it takes a lot of rigor to select the right person for the right position in order to ensure the best customer service. The Ritz training system uses an event called "Day 21" in which each new recruit is assigned to an experienced employee (learning instructor) for three weeks of on-the-job training. I think one of the strengths of the Ritz system is that learning at Ritz is an ongoing process. Both management and non-managerial staff at Ritz-Carlton receive ongoing training, and most of all learning is done through on-the-job training. In addition, “7-day countdown” training motivates new employees by welcoming them. I believe that this training and development program can pursue two specific goals. First, new employees can recognize and adapt to the company's vision and values. Second, they obtain both soft skills and technical skills through this training. However, the question that comes to my mind is whether this 7-day system is efficient in terms of cost, speed and quality of training or does it take more time to achieve such goals? Moreover, the motto, “We Are Ladies and Gentlemen Serving Ladies and Gentlemen” represents a philosophy where staff are as admirable and appreciated as the most valuable guests. Finally, the company surveys its customers once a month to ensure the impact of its training programs on customer satisfaction, which I think is an important point in the evaluation.
Q1/2: To what extent does the system create the leadership, values, and culture of the Ritz?
Leadership, values and culture are the most important parameters discussed in this system. With its orientation, training and development plan, Ritz conveys the value and culture of the company to the employees by the management team. Their executives create a culture in which each employee recognizes the dual goal of flawless service and customer satisfaction, and the employees themselves drive progress towards the goal. In fact, Ritz-Carlton senior executives are responsible for leadership and devote a major portion of their programs to quality improvement issues. They periodically consult with guests and staff to identify areas for improvement and meet weekly to review quality and performance standards, guest satisfaction, and market developments. I think the fact that the CEO takes the time to introduce employees and even show them "how to do it" is the best system Ritz uses to build leadership values in their employees. Leaders believe that the core values and culture of the company are the tangible assets and cornerstones, not the regular norm for Ritz. They also allow staff to make some decisions to meet the unique needs of guests by creating freedom of action. Therefore, this regard offers incentive programs for the best ideas; such as “cash prizes” and “five-star quarterly staff awards” for the best initiatives. I think, gold standards such as the slogan "We Are Ladies and Gentlemen at the Service of Ladies and Gentlemen" and the three essential service steps (warm reception, anticipation of the guest’s needs and a lovely farewell) are examples of how Ritz has its own system of valuation and culture building.
Q1/3: What specific aspects of the training program help new recruits understand what it is to be a Ritz employee?
In my opinion, the 7-day countdown orientation training program that motivates new recruits can be very crucial for transmitting organizational culture to new employees and helping them better understand their role in the company. Each new employee must complete a two-day orientation program before being assigned to work at the Ritz-Carlton, where they become familiar with the company's history, philosophy, culture, standards, values, expectations and benefits. Ritz-Carlton ensures that no new person joins the work without a two-day orientation. Whereas the remaining five days include more particular skills training and trial runs of service transfer. After an initial one-week orientation, when personnel are found to fit different levels of skills and technical backgrounds, it is time for a three-week on-the-job training. During this time, recruits have the opportunity to discuss their training experience, whether it has met those expectations, and provide general feedback. At the end of this step, individuals receive a 21-day certificate, followed by formal on-the-job training in their core position until day 365. On day 365, the new staff is re-approved and formally hired after passing the written test, interview and role-playing session. Therefore, this long-term training program can present the company’s culture, vision, department goals, teamwork, technical training and other company standards to the new employees in an acceptable way. I think with this long-term planned training method, novices can better understand their role and responsibilities as a Ritz employee.
Q2: How do you balance quality standards against the need to empower employees to customize their responses to specific situations? Give specific examples as they relate to the Ritz.
The Gold Standards are the foundation of the Ritz-Carlton Hotel Company, L.L.C. and include the values and philosophy on which the company operates. These standards are: The Credo, Motto, Three Steps of Service, The 20 Ritz Basics, and The Employee Promise. The staff believes in providing the best services and facilities for their guests. Motto "We are ladies and gentlemen who serve ladies and gentlemen." exemplifies the preparatory service provided by all staff members and is the benchmark of any employee for polite and professional service. Employees are committed to implementing the standard of three stages of service, which include: 1) A warm and sincere greeting. 2) Anticipate and meet the needs of each guest. 3) Give a kind farewell and use the guest's name. By observing these 3 steps, I believe a good relationship is formed between employees and customers, and it shows that employees value their services and are proud to be a member of the Ritz. By adhering to the most basic principles of the company, personnel are committed to protecting the privacy and security of guests, colleagues and the company's confidential information and assets. This method also creates a safe, accident-free environment for customers. Employees act in the best interest of individuals and the company by adhering to their promises and applying the principles of trust, honesty, mutual respect and responsibility. I believe that the Ritz-Carlton HR strategy greatly helps to motivate employees, including employee empowerment, talent development, financial rewards, promotions, job respect, and more.
Research shows that by applying these gold standards of quality, Ritz-Carlton creates a work environment in which diversity is valued, fewer safety incidents occur, and higher productivity follows. Although some critics believe that Ritz's gold standards are largely strict means of its establishment, but I consider the vice-versa, that the presentation of these standards relies heavily on the creativity, innovation, and individual judgment of employees. For example, the fact that employees are given the freedom to improve their experience or solve problems for the guests, increases self-confidence, incentive and empowerment. Staff are rewarded and praised for anticipating and acting on the guest’s needs in their chosen style. They receive this feedback daily, where teams gather to talk about events, messages and indicators. In this way, quality standards support and affirm the thoughtful use of creativity and empowerment. I think that the observance of quality standards along with the right and principled strategy, provides an excellent level of services, and at the same time seeks the satisfaction of both employees and customers.
Q3: Do you think this training approach would work in other service industries? Why or why not?
The Ritz-Carlton is one of the most successful hotel chains in the world, which has been refining, completing and developing its training system for decades. Considering the results, the satisfaction of the employees and customers, we can say that it is a very successful example for other service industries. In my opinion, the Ritz-Carlton training system corresponds to the main features of education in today's world. Features such as the ability to adapt to new technology, interact with tech to meet customer needs, the ability to manage technical knowledge, creating new ideas and concepts, are some of the training methods used. The organization's senior management believes that all employees should be trained in a wide range of technical issues, communications, teamwork, responsibility and business issues, and involve all levels of staff in analysis, innovation and progress. Research has shown that to date, thousands of organizations have been trained in the Ritz-Carlton method and have achieved significant results. Successful organizations, such as Apple Inc., design their training and service standards based on the Ritz-Carlton method. Although Ritz-Carlton, like any other organization, is criticized, they have become the most reputable luxury hotel brand in the world, and most experts believe that this is largely due to the way they are trained. Therefore, I think by applying the same principles and philosophies to other service industries such as banking, finance, information technology, healthcare, and consulting services, etc. seems to be a logical and sensible strategy.