The Ritz-Carlton Mangment Case

1. Using Exhibit 3-2 and the information from this case, describe the culture at The Ritz-Carlton. Why do you think this type of culture might be important to a luxury hotel? What might be the drawbacks of such a culture?

For students, the first dimension of culture that should immediately stand out is "attention to detail." A class discussion could begin on how this quality has created a long standing image of the Ritz-Carlton and how this value aided its growth and place in the market. However, while attention to detail is important, it will be necessary to shift gears and focus on Ritz-Carlton's new set of values which is based on outcome orientation. The idea of not scripting interactions between employees and guests is an important aspect of providing an exceptionally high level of performance. Address the idea of how a script may limit customer service and what impact, positive or negative the new approach may be for employees.

2. What challenges do you think the company faced in changing the culture? What is The Ritz-Carlton doing to maintain this new culture?

On paper, it sounds so easy. "Things to do today, change the organizational culture." For students who do not much experience establishing company policy it may difficult to appreciate the difficulty of actually getting employees to change. Changing a culture is much more difficult than changing rules and procedures. Once the changes are in place, it is then up to the management of Ritz-Carlton to maintain them. Have students think of several ways to reinforce a culture aimed at 'wowing' customers. Answers may include prizes or other incentives.

3. What kind of person do you think would be happiest and most successful in this culture? How do you think new employees "learn" the culture?

For the Ritz-Carlton, the challenge will be to find employees who are naturally good natured and want to make other people happy. Recruiting the right employees is an important element of reinforcing this new value. Ask students how they would go about finding employees with this quality. Are there some places of the country where a smile comes more naturally? Are there any occupations that Ritz-Carlton may draw from where employees are more relaxed and authentic sounding?

The second part of the question could create a new line of discussion. Learning a script is easy. Learning how to do be 'natural' and provide a unique level of service for a broad range of request is difficult. Ask students how they would teach this new culture to employees. Will they learn it in a classroom? How much will have to learned on the job? What part will role models play? How much time will it take for new employees to learn to wow the customer?

4. What could other organizations