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The ritz carlton hotel company

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The Ritz-Carlton Hotel Company

Submitted by:Nisha AgrawalN V Jagadeesh Kumar T

Ritz Carlton Hotel1898- Cesar Ritz worked in some of the finest hotels and restaurants in the city1899- Opened the grand hotel with his name The Ritz-Carlton Hotel Company1983- Survivor even after one Great Depression and two world wars1983-1997- Expanded domestically and internationally under the Johnson Companys ownership.1997- Marriott International purchased The Ritz-Carlton2000- The Ritz-Carlton was primarily a management company operating 38 hotels and resorts across the globe.

Millennium PartnersNew York-based real estate development group founded in 1990Create high end luxury apartments that would command premium prices because of light, height and viewsTo solve the problem of convincing customers that they provide great service they ended up with the idea of luxury hotel

Business ModelTwo key indicators of success in the hotel industry:Average daily return (ADR)Revenue per available room (Rev PAR)

Two main customer groups:Independent travellersMeeting event planners

Quality at Ritz-CarltonEmphasis on HRTQMService quality indicators (SQI)Creation of sticky relationship

HR at Ritz-CarltonRespect for employeesEnlisting employees not only for physical labour but also for their brain, heart & soulday 21 event for new hire to assess the degree to which it has lived up to the promises made to its employees during orientation & initial trainingEg: career advancement opportunitiesOffered extensive formal & informal training to the employees to fulfil their current obligations & to accept positions of greater responsibility & accountability in the future.Employees with advancement ambitions were encouraged to cross-trainPerformance was assessed not only against SQI but also managed by employees themselvesAward for outstanding works:Small award with in departmentLarger reward at the hotel level

The Ritz-Carlton hotel opening process Running an ongoing operation & opening a new hotel are two different core competenciesThe activity for creating new hotels were two-pronged Dealing with the development of the site itselfInvolving the HR processes necessary to get the hotel up and runningThe hotel development process was assessed against performance quality indicators (PQI)

The propertyDecision made before opening any new hotel:Site selectionConcept / new product developmentFeasibility studiesManagement contract negotiationCustomize each hotel to meet local market demands

Staffing the new hotelProperty OwnersGeneral ManagerDirector of MarketingControllerFunctional ManagersLine staff membersAlready Operating Line-Staff Selected & Trained by relevant team membersLeaders


Focus on key HR practices to minimize failures

Personal RecruitmentSelectionTraining

Personal RecruitmentFor technical expertise or higher level service delivery position, prior experienced people were hiredFor entry level positions, novices were acceptable

Ritz Carlton job fairSelection procedure of all the individuals who had appliedAfter the warm welcome, the applicants had to go through screening questionnaireThen proceed to a structured interviewEach individual was escorted fond farewellPre employment call back process to reduce the attrition that occur during the lag between the job offer & the start dateNew employees were treated as customers

The seven day countdownFirst two days orientation about Ritz-Carlton culture & valuesRemaining five days specific skills training and trail runs of service delivery

Day one : staff orientationPep rally by new employees with other members of their divisionsGathering of all the employees in the large ballroom with video cameras hooked up to TVs providing a simulcast of all activityIntroduction followed by a video describing companys history, philosophy and values, Ritz-Carlton's milestones, the awards they had won and their new hotels

Gold standardsThe credo this is who i am from now onThree steps of serviceRecognition of guestsAnticipating needsFond farewellThe motto we are ladies & gentlemen serving ladies & gentlemen The employee promiseThe twenty basicsService philosophyLeadership Orientation

Why orientation is important?When an organization shares their dreams, heart & soul with their new employees they convey their expectations.Change behaviour through significant emotional experience

Day two : departmental vision sessionGroup exerciseSchulze explained the concept of their product & service

Day three through seven : skills training

First two of the remaining five daysUniform fitting were scheduled Personal grooming sessions were conductedEmployees were introduced to the daily line-up procedureLife safety instructionHandling guest difficultiesLast three days technical training in real life settingObserved by corporate steering committee

Whether the seven-day time frame limited the hotels ability to open at a higher occupancy rate?NoOccupancy rate doesnt completely depends upon the employees.Goodwill of the company.Ability to customize their service according to local needs.

Whether extra training would help the employees to further polish their service skills?Yes because it was difficult to train new hires to meet the high expectations of the Ritz-Carlton service standards only in seven days.But it was a worldwide practice for the company.It has successfully opened hotels previously using the same training program.

Should McBride change the SEVEN DAY Countdown process?NoThe cost involved might be high but the benefits might not outweigh the cost..Practice makes a man perfect.

Thank You

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Submitted by: Nisha Agrawal N V Jagadeesh Kumar T
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