Critically examine the elements of Ritz-Carlton’s organizational culture.

What are the

positive elements of the culture?

In the organizational culture of Ritz-Carlton Company there are important elements which governs its
organization and maybe distinct from others. These elements are significant in defining its cultural identity –
rituals, strict standards for service and behavior, rules-driven, formal, and extreme standardization.

The elements mentioned above signified a strict observation of a refined structure. These structural
elements however, restrict company’s adaptability level as it goes towards post-modernity. Rituals are
employed in the company to enable employees familiarize themselves with such distinct organizational
culture. It is to be considered in general condition that a culture carries a distinct rituality. Thus Ritz-Carlton
developed its own ritual in order employees identify themselves as part of the organization with distinct
cultural identity and value system.

how do they contribute to keeping employee morale high?

The selection process practiced by Ritz-Carlton is what they called “benchmarking”. Given this mode of
selection process, Ritz-Carlton management do not use the term “hiring” rather “selecting” since it observes
a proper and rigorous screenings of applicants. The selection process is rigorous consisted of several steps
before an applicant to be retained in the company. A lot of initial screenings, telephonic interviews, standard
behavioral interview questionnaire, and several interviews with different managers of different departments
of the hotel are specific steps applicants’ undergo. In the end of this selection, top management choose to
look for applicants that have positive attitude, empathetic, and has the ‘ability to smile’ naturally. This
highly standardized screening purports high expectations of the management towards applicants’ quality
work. After such rigorous screening, applicants are expected to undergo a long period of training under the
assistance of appointed managers or trainers.

The Ritz-Carlton management provides enough resources subsidized to training programs of its
applicants. The focus of training process is to make applicants aware and oriented to the nature of work,
familiarizing company’s standards, philosophy, history, expectations, values, and benefits. Team building
becomes the core exercise in training prospect applicants. In the range of about three weeks of on-the-job
training, applicants may able to help themselves acquainted with the nature of the job and its culture.
Applicants are trained as to the standard of proper kind of language use in dealing with guests and finally,
applicants are given a standardized test to gauged their understanding of Ritz-Carlton service philosophy and
technical skills it needed and those who successfully pass this test will stay with the company.

However, retention process derives from the management organizational strategies and tactics used
in dealing with employees. In the case of Ritz-Carlton, it developed an organizational culture not only
helped the ‘company provide exemplary customer service’ but creates an atmosphere which employees
boost their self-esteem and felt valued by the company. This kind of treatment gives employees satisfaction
and sense of commitment. It is within its “credo” and “motto” which speaks of company’s respect to
employees’ dignity and integrity that received them recognition from different award giving body.

Would you say that Ritz-Carlton’s service ethos places employees under undue
pressure?
One of the biggest criticisms against Ritz-Carlton’s culture was that it put a lot of pressure on employees.
The disadvantages for the company itself, concerning their strong culture and emphasis on standards, are
the costs for establishing and maintaining these standards including training and constant development of
the methods. Additionally the extreme internalization of the standards results in an inelasticity and loss of
employees’ personality. As the implementation of the new service values showed, it is difficult to put new
ideas and procedures into practice. Extreme standardization and an all-embracing service culture
automatically result in a number of disadvantages; however, these have to be seen in relation to the
advantages which made Ritz-Carlton known for its service excellence. Analysts felt that the company’s
strict standards for service and behaviour could create an inordinate amount of stress for the employees,
who could begin to resent the extent of control to which they were subjected. In addition, employees had
to follow so many rules that it became difficult for them to be spontaneous and natural, as would have
been expected of them in a service organization. Consequently, their responses could, at times, look
rehearsed and make customers feel uncomfortable.

What, in your opinion, are the shortcomings of the company’s culture?

» To examine the elements of the organizational culture of a company known for service excellence

» To analyse the significance and benefits of having a strong organization culture, especially for service
companies

» To understand the significance of rituals in keeping organizational culture uniform and consistent

» To study the issues in change management in context of the company under study

» To appreciate the importance of orientation and training for new employees, and its impact on employee
morale

» To examine whether strict standards can lead to rigidity in organizational culture and the negative impact
that rigidity can have on employees

Ritz-Carlton had initiated a cultural shift in 2006. How will the change in orientation benefit the
company? Is Ritz-Carlton justified in introducing the 12 Key Service Values by replacing the existing
value system? Comment on the company’s handling of the change process.

Culture drives everything that happens in an organization each day. Everything. Each day. That’s how
important culture is to your organization, and this is why immersing new employees into your culture is of
paramount importance. Immerse may seem like a strong word, but think of it like visiting a new country.
You need to know as soon as possible whether you drive on the left or the right, whether or not you can
drink the water and whether shaking someone’s hand is courteous or offensive. Likewise, new employees
should learn about your organization’s customs as soon as possible– culture and onboarding have a
symbiotic relationship. They need to understand your organization’s values and goals, general rules of
operation and common language and behaviors. Adapting to an organization’s culture does not take place
overnight. At The Ritz-Carlton, we understand that new employees go through three phases before they
completely embrace the culture.

If your organization decides to move forward with culture change or other change initiatives, you will have
employees who will welcome the shift, but you also will have to win over these types of employees:

 the tenured employees who have seen change initiatives fail in the past
 the negative employees who tend to forecast doom and gloom even when the sun is shining
 the “I told you so” employees who feel they are smarter than the decision-makers
  the “I hate change” employees who are more comfortable sticking with the status quo
 the “does this mean more work?” employees who are already feeling overwhelmed
 the “last-minute” employees who don’t want to jump on the train until it’s leaving the station

Ritz carlton had initiated a cultural shift. It changed orientation benefit the company. I appreciate it very
much since it effectively injects important and significant information about the company’s life and its
culture. Just imagine an employee who goes to work with a clean slate in his mind. It would be impossible
for an employee to execute proper work if and when s/he is acquainted with the organization’s history,
philosophy, mission, or work. The role of orientation and training provides employees to grasp the
prevailing or historical antecedents of the organizational and to fully understand the nature of the work. So,
by this, it could create a better environment and atmosphere, and an increase of productivity level can be
assumed.

1. I build strong relationships and create Ritz-Carlton guests for life.

2. I am always responsive to the expressed and unexpressed wishes and needs of our guests.
3. I am empowered to create unique, memorable and personal experiences for our guests.
4. I understand my role in achieving the Key Success Factors, embracing Community Footprints and
creating The Ritz-Carlton Mystique.
5. I continuously seek opportunities to innovate and improve The Ritz-Carlton experience.
6. I own and immediately resolve guest problems.
7. I create a work environment of teamwork and lateral service so that the needs of our guests and each
other are met.
8. I have the opportunity to continuously learn and grow.
9. I am involved in the planning of the work that affects me.
10. I am proud of my professional appearance, language and behavior.
11. I protect the privacy and security of our guests, my fellow employees and the company’s confidential
information and assets.
12. I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free
environment.

In Ritz-Carlton context, the dominating élan by the management focused in the development and
formation of employees towards a more quality customer service. Employees in this regards occupies the
center stage of the organization due to a fact that only through employees quality work and commitment to
service when the goals and vision of the company can possibly achieved. Hence, vital in creating cultural
identity within the field of work is good leadership and an identified values system to promote.

On the other hand, training and development system obviously support the formation of culture and
its identity within. Through rigorous and effective trainings held prospect employees can easily acquaint
themselves and familiarize a distinct culture of a company. Likewise, the company employs and integrates
within the scheme and procedure of trainings necessary information about its organization, history, vision,
and culture itself. As to the process of development, employees in the Ritz-Carlton company receive
continues training as part of developing more their technical skills and other abilities that would be useful
for the company.