Ritz-Carlton's Service Excellence and HR Management Strategies

Introduction: History of the Ritz-Carlton

Founded in 1898, the Ritz-Carlton Hotel Company has grown to become one of the most recognized luxury hotel brands in the world. It was named after its founder, César Ritz, who came from Switzerland. After working in the finest hotels of his era, he established the Carlton Hotel, which would later become known as the Ritz-Carlton. The hotel built a great name for itself over the years by specializing in personalized service. It also faced significant challenges, including surviving the Great Depression, the First and Second World Wars, and the closure of all but one of its branches.

In 1983, its North American rights were purchased by the Johnson Company at a time when only one branch remained in America — the Boston location. The company changed hands again when Marriott International acquired it in 1997. By the beginning of the new millennium, the company operated 38 outlets around the world, including both resorts and hotels.

The Ritz-Carlton Hotel Company makes a concerted effort to provide a memorable experience by anticipating customer expectations and actively working to exceed them. This not only reinforces the customer's choice of the hotel but also increases the likelihood of a return visit and a positive recommendation. Every visitor is given a high-end customer experience (Estis, 2).

Excellence of Service

One of the ways the Ritz-Carlton achieves its superior service is through the continuous improvement of the services it offers. The company pursues an extreme level of personalization, going so far as to employ staff dedicated to customer recognition. This recognition extends to monogramming the pillows of repeat guests, so that returning visitors feel they are arriving somewhere familiar. Through these efforts, the company works to create a strong emotional attachment, with the goal of making guests unwilling to stay anywhere else (Estis, 2).

Rather than focusing primarily on profit margins, the Ritz-Carlton centers its attention on the customer experience and the active engagement of its staff. These efforts are ultimately reflected in the company's financial performance.

Staff engagement at the Ritz-Carlton is a thorough process involving multiple screenings. All human resource processes are designed to produce the most competitive pool of staff possible. The company uses a staffing model it refers to as benchmarking — a term it deliberately favors over "hiring" — which involves selecting candidates from a large pool through a comprehensive, multi-stage process. This process includes telephone interviews, questionnaire completion, and interviews with various section managers (Sucher and McManus, 6–16).

Human Resource Management and Employee Selection

The qualities the Ritz-Carlton looks for include a readiness to smile, a positive general outlook, and the ability to empathize. The high number of stages in the selection process reflects the company's expectation of a very high level of service. Successful applicants then enter an educational program supervised by managers and trainers, covering topics such as service standards, organizational history, ways of thinking, core values, and the benefits available to employees (Sucher and McManus, 6–16).

The training program, which lasts just under a month, allows candidates to fully absorb the attitudes and expectations associated with their roles. Standards covered include those governing interactions with guests, including the appropriate way to address them. At the end of the program, candidates are tested on their comprehension of all they have learned, including practical skills. The Ritz-Carlton retains those who demonstrate excellence (Sucher and McManus, 6–16).

The Ritz-Carlton has a system called the Seven Day Countdown, which was developed in the late 1980s and early 1990s for new recruits in the period just before a new hotel opened. This was the first formal encounter new employees had with the organization after being selected. During the initial two days, new employees were introduced to the organizational culture and values; the remaining days were devoted to imparting the specific skills required for their new roles (Sucher and McManus, 28).

Orientation at the Ritz-Carlton was characterized by enthusiastic cheering and a warm welcome from existing employees and managers. The celebration began outside the hotel, with loud cheers for the new recruits in a spirited competition among those welcoming them. The enthusiasm continued inside the hotel, where managers lined the staircase to personally greet each new employee.