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The Ritz- Carlton Hotel Company

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Catarina Teixeira de Figueiredo

on 9 December 2012

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Transcript of The Ritz- Carlton Hotel Company

Ritz Carlton History New York based real estate development group;

Target group: wealthy individuals looking for 2nd or 3rd homes;

Why a partnership with a hotel company? To create a base for their luxury apartments. Millennium Partners Guest Business Model Human Resources is the dominant function in the company Quality at the Ritz-Carlton Hotel "Employees are the distinguish hallmark of the organization":

Annual employee turnover=20% compared with the Hotel Industry average=100% - focus on purposeful work;

Opportunities for career advancement;

Extensive formal and informal training offered by The Ritz-Carlton;

Cross-training is encouraged;

Employees are encouraged not to hide mistakes;

Employees monitor their own performance;

Awards at the department level and hotel level,example:“Five-Star Team”. Human Resources
at The Ritz-Carlton Focus on the development of:

1.The site itself;
2.The structure of the human resources procedures needed to get the hotel up and running. The Ritz-Carlton Hotel
Opening Process 1898 - Cesar Ritz opens his first hotel in Paris

Vision: excellent personalized service

Expanded to North America:
- 1983-1997 Johnson Company’s ownership
- 1997 Marriott International

Growth strategy: obtain management contracts for new hotels and resorts around the world Management Contract 1.Millenium Partners own the hotels;
2.The Ritz-Carlton manages properties. Customer groups:
(1) Independent travelers - help with profitability;
(2) Meeting event planners - pay the mortgage. Product Type: perishable product
"an apple left unsold today can be sold tomorrow, but a room night lost today is lost forever" Strong supply of management companies + decline in hotel demand Owners gain leverage on the negotiation of management contracts Total Quality Management (TQM) philosophy Service Quality Indicators: Existence of a structure to evaluate quality of services: The Property Washington DC Ritz Hotel Proximity to several sites of interest (capital hill, White House, embassy row);
Status as a global destination;
Potential strong clientele (foreign diplomats and local residents). Market Customization Major management concern: Adapt each hotel locally in order to meet local demands Washington Hotel security design broke traditions regarding interior design Staffing the new Hotel For the first time The Ritz Carlton is opening a Hotel that is integrated on a multi-use facility. I am suffering pressures from Millennium Partners to reexamine “the Seven Day Countdown opening process”.

Taking into account the future relationship with Millennium partners and the Ritz-Carlton brand, what should be my decision? Property owners approve the Ritz Carlton nominations for executive positions:

General Manager, Director of Marketing and Controller. Executive positions
select Functional Managers Functional Managers
hire Line-staff members When the hotel is already operating, the selection process is inverted (line-staff select leaders from a pool of candidates) Personnel Recruitment
Process 1. Target adds in newspapers of major cities;

2.Individual interviews in welfare-to-work programs;

3.Individuals with significant prior experience are hired for high level service delivery. RC job fair The seven day countdown Day 1- Staff Orientation Day 2-Departmental Vision Sessions Day 3-7:Skills Training New employees join other members of their divisions outside the hotel;

Gold standards are introduced to focus employees on the core company values;

Leadership orientation program for managers;

Motto: “We are not servants. We are ladies and gentlemen serving ladies and gentlemen.” Process of standardization of practices that aligns the worker with the mission of the company In each functional area, employees met for an introduction to their new departments (group exercises). Example of Departamental Vision Session for a Bartender: "clients are not coming to drink they are coming to feel well" Day 3 and 4:
Overviews within each functional area in order to provide a big picture within divisions;

“Instant Guest Pacification” - “Handling Guest Difficulties”. Last 3 days - departmental technical training:

Employees learned the details involved in performing their jobs to the standards set by The Ritz Carlton;

Everyone was expected to master their department’s key production processes;

Employees practiced their job as if they were serving real customers. The Job Fair is part of their signature experience as they treat employees with the same high quality service as they treat customers.

Two day mass recruitment-selection procedure: Goal personal demonstration of the service-oriented culture of the Ritz-Carlton hotels Should the company change the Seven Day Countdown process?

Would a longer development program allow for a higher occupancy rate on the first months (50% to 80%)? Would that increase profits and clients satisfaction?

Lets analyze the pros and cons! Pros Cons -This model proved success
-Considered a hallmark of The Ritz-Carlton’s well-defined hotel-opening process
-Successfully transmits to employees the Ritz-Carlton values (signature experience)
-High quality standards recognized as outstanding with current model -New challenge: open a hotel in a multi-use facility (“hospitality complex”)
-Keeping the current model could affect the company’s future relationship with Millennium Partners
-Seven Day Countdown being held while constructions are still taking place (distraction to employees) Current Situation Possible solutions -Increasing the occupancy rate to 80% from the start by extending the Seven Day Countdown
- increase mainly the number of technical skill training days

-Seven Days countdown taking place only after the hotel construction is finished

-Include more employees from other hotels to stay and help train the new employees during their first months

-Keep Seven Day Countdown but start at 60% capacity the first month , 70% the second and 80% from the 3rd onwards

-Create an entirely new and longer training process (time consuming and costly) housekeeping
problem resolution anticipation of guest needs
warm welcome
hotel cleanliness Case 3 - The Ritz Carlton Hotel Bruno Jorge, 1274
Catarina Teixeira de Figueiredo, 1167
Guilherme Oliveira, 1182
Matilde Soromenho, 1250
Nina Sampaio Carrilha, 1280
Patricia Guerreiro, 1218 - 2,300 people had gone through selection process;
- 1,700 had already completed application process before job fair;
- 400 people were hired - 3 uniformed representatives (metro to hotel path with ribbons)
- Warm welcome
- Fond Farewell with chocolates What do you think should be done? Thank you for listening!
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