Assignment Instructions:

• Be sure to cite at least two scholarly, peer-reviewed references in support of two of your answers and also incorporate the key concepts from the course.

Assignment Question(s):

Please read the case study TQM at the Ritz-Carlton in Chapter 13, p.391 available in your textbook Organization Development & Change (10^th ed.) by Cummings, T and Worley, C and answer the following questions:

• Q.1 Based on your understanding of the case, discuss and evaluate employee involvement as practiced by the Ritz-Carlton in terms of the following key elements:

-Power (0.5 mark)

-Information (0.5 mark)

-Knowledge and skills (0.5 mark)

-Rewards (0.5 mark)

• Q.2 Do you think the Ritz-Carltons experience with TQM could be provided as a benchmark to other organizations? Explain your answer in light of the stages for TQM application. (1.5 marks)

• Q.3 Discuss which features are evident in the practices of the Ritz-Carlton that would enable the Hotel Company to meet the criteria of high involvement organizations. (1.5 marks)

CHAPTER 13 EMPLOYEE INVOLVEMENT 391 TQM AT THE RITZ-CARLTON application 13.2 he Ritz-Carlton Hotel Company, the premier level of the firm where teams in the individual flagship of Marriott International, operates work areas set objectives and create action 81 luxury hotels in 27 countries. Employing plans that are reviewed by the corporate steer- about 38,000 staff, the firm has a venerable ing committee. This cross-level planning pro- record of excellent service that is considered cess helps to assure that quality goals and the benchmark by many in the hospitality action plans are consistent across organiza- industry. Ritz-Carlton has been involved in tional levels and integrated with the firm's TQM for over 30 years and was the first hotel overall plan. In addition, each hotel has a chain to win the coveted Malcolm Baldrige designated quality leader, who serves as a National Quality Award in 1992. Needless to resource and advocate as teams develop and say, Ritz-Carlton is passionate about quality implement their quality plans. guest care, from the president and chief oper- Teams play a key role in providing quality ating officer, Herve Humler, to the mainte- service. Each work area in a hotel includes nance, front desk, and housekeeping staff. teams responsible for problem solving, strategic Ritz-Carlton's unique approach to TOM is planning, and setting quality-certification stan- embedded in its strong corporate culture, dards for each position. Employees meet as which is spelled out clearly in its "Gold teams to spot problem patterns, prioritize Standards." These standards are the backbone problems, and develop measures to prevent of the company and include the values and phi- their recurrence. These cross-functional teams losophy that guide how it operates, including require sufficient time and resources to learn processes for solving problems and criteria for how to function effectively. Managers are still grooming, housekeeping, safety, and efficiency responsible for objectives and solutions but The Gold Standards include Ritz-Carlton's credo, rely on input and involvement from team mem- motto, three steps to service, service values, bers. A unique team tradition at Ritz-Carlton is and other proprietary statements. All employ- the "lineup," drawn from early French restau- ees know the Gold Standards by heart and are rants where the chef got his whole team, includ- well-trained in what they mean for daily work ing the waiters and waitresses, together at the behavior. For example, Ritz-Carlton's motto, same time each evening to communicate what "We are Ladies and Gentlemen serving Ladies they are going to be serving. At the Ritz-Carlton, and Gentlemen," is closely tied to how guests teams on every shift use the lineup for about are welcomed, with "a warm and sincere greet- 15 minutes every day. This includes sharing ing," and depart with a "fond farewell." up-to-the-minute information as well as talking Ritz-Carlton's TOM program begins at the about great things employees have done to top with senior executives who spend about a deliver exceptional service. quarter of their time on quality issues. Because An integral part of Ritz-Carlton's TOM the company's service culture is built on trust, program is empowering employees to solve these leaders hold themselves accountable for be- guests' problems as quickly as possible, having according to the values that they require of Employees are responsible for acting at first the organization. The senior executives comprise notice, regardless of the type of problem or the corporate steering committee for TOM as well guest complaint. They are expected to stop as the senior quality-management team. Each their normal routine and to take immediate week the steering committee reviews various positive action to discover what went wrong measures of service quality and performance. It and resolve it. They are empowered to handle engages in detailed planning by setting objectives, any customer complaint on the spot and can devising action plans, and assessing results. demand the immediate assistance of other This planning process is essential to Ritz- employees and spend up to $2,000 if neces- Carlton's TQM program. It extends to each sary. Employees can apply this rapid response 392 PART 4 TECHNOSTRUCTURAL INTERVENTIONS not just to solve problems but to do something that also are tested on how well they know the com- creates an absolutely wonderful stay for a guest, pany's TOM philosophy and credo, which can qualify such as surprising guests with champagne and them as "quality engineers." Ritz-Carlton expects cake in their room on their birthdays. Ritz-Carlton 100% compliance with skills testing, so that every- also works hard to avoid guest problems before one is certified to do a particular job and is a quality they occur. Employees who detect a potential engineer as well. The company's performance problem in service delivery are immediately appraisal system is based on the Gold Standards expected to bring it to management's attention and employees are held responsible only for those and a solution is found. Eliminating internal things under their control. employee complaints can avoid external com- Ritz-Carlton also has extended TQM to its sup- plaints that might come from guests. pliers. To assure that suppliers can meet the firm's A key to Ritz-Carlton's TOM success is the con- quantity and quality needs, it has developed a sup- tinuous collection and analysis of data on service qual plier certification process, which measures how ity and its comparison to predetermined customer often suppliers meet specifications on time and expectations. Assisted by the latest information tech- how well they improve their cycle time from nology, the company gathers information on such order to delivery. The certification process also quality measures as percentage of check-ins with no includes an internal audit of suppliers' capabilities queuing, time spent to achieve industry-best clean- and a quality survey of those who use their room appearance, time to service an occupied guest products and services, including purchasing room, and guest room preventive-maintenance agents, accounting personnel, sales persons, and cycles. Data submitted from each of a hotel's 720 hotel guests. Ritz-Carlton ranks suppliers based work areas provide daily quality production reports, these data with the objective of getting them certi- which enable rapid identification of problems in fied to become a fully integrated partner. achieving quality and customer satisfaction goals. The fundamental aim of Ritz-Carlton's TQM pro- Ritz-Carlton's human resource practices are tied cess is not simply to meet the expectations of closely to TQM. Selection, training, and performance guests but to provide them with a visit that is unique, appraisal are geared to talent acquisition, develop memorable, and personal. According to independent ment, and retention. Only about 2% of the people surveys, 92% to 97% of the guests leave with that who apply for jobs are hired. A key criterion is how impression. Ritz-Carlton's experience and success well the applicant is likely to fit the company's culture with TOM has spread worldwide to organizations in including being a team member. Once on board, a variety of industries and regions. Started in 2000, new employees are versed on the corporate culture its Leadership Center provides knowledge, informa- through a two-day orientation, followed by extensive tion and benchmarking to organizations interested in on-the-job training, then job certification. To obtain learning many of the business practices that led to certification, employees are assessed on their mas- Ritz-Carlton becoming a two-time recipient of the tery of skills associated with their particular job. They Malcolm Baldrige National Quality Award