The Ritz-Carlton Company: The Managerial Functions

The Ritz-Carlton Company: The Managerial Functions

Introduction.

Planning plays a significant aspect in the management of an organization. This is a role that should be done independently from other functions of the management. There are four crucial functions of management that is applied at all four organizational levels. Management is about bringing people together so as to accomplish a set of goals. In order for these goals to be attained there is the need for planning, leading, controlling, and organizing. For Ritz-Carlton Company, its main goal is to have a 100% customer satisfaction.

Ritz-Carlton is the first company to have the Malcolm Baldrige National Quality Award. This company considers quality service as the focal point of its operations (Heizer & Render, 2011). This is a Hotel company that operates five-start luxury and resorts hotels throughout the world. It has been awarded for its high quality hospitality and an organization with the leading customer attraction. It is the only organization to have received the Malcolm Baldrige National Quality Award twice among the other companies in the hotel industry in the United States Department of Commerce (Ritz-Carlton, 2012).

This paper will examine in detail the four managerial functions of Ritz-Carlton Company. The main challenge that Ritz Carton faces on its managerial function is to ensure continuous improvement. This is because when the customers’ expectations are not met in the near future, then this hotel company faces the risk of losing its customers to its competitors.

Background.

Ritz-Carlton Company is a business that deals with resorts and luxury hotels. It has 79 properties found in greatest cities worldwide, and it has a total number of twenty six resorts around the globe. The organization further provides training services in Ritz-Carlton Leadership Center and Ritz-Carlton Learning Institute. These training operations were created by Leonardo Inghilleri the executive of this company. Thousands of executives of other global companies have under gone their leadership training from Ritz-Carlton training services. Ritz-Carlton Company first started with the Ritz-Carlton, Boston.

The company’s dining, facilities, and services serves found in Boston served as the foundation of Ritz-Carlton resorts and hotels around the globe. The Boston based company is remembered for the effort done by the hotelier Cesar Ritz. His philosophy was to be the King of all hoteliers through innovations and services that defined luxury hotel. In Boston, Ritz-Carlton revolutionized the American hospitality through the development of new hotel setting as seen in the use of lighter fabrics that could be easily washed, guest room private birth, apron uniforms and white tie among the staff members, fresh flowers on public areas, gourmet cuisines with genius cooking methods and smaller lobbies to provide personalized guest experience. Currently, the Ritz-Carlton resorts and hotels worldwide continue to set tables with cobalt blue glasses as their signature. These are aspects that have continued to put the company with a high status symbol and are fashionable (Corporate ritzcarlton.com 2012).

Analysis.

Ritz-Carlton leadership.

Due to the external business environment that Ritz-Carlton faced, that was characterized by highly competitive players and market. The company has always made efforts of improving its position in the market. The head of this organization, Leonardo Inghilleri, was as aware of this environment, and despite the fact that the company was among the market leaders, he feared that the status quo would negatively impact on the company. He, therefore, came up with a new business strategy on the development of image among its customers. Every individual in Ritz-Carlton is considered as a leader. The staff members work as a team. This marked a shift from the past leadership structure that was headed by managers into the team based structure. The team manages itself, and it is not under and supervision or management. The teams are numerous and are assigned various services such as concierge, Restaurant, Banquet, Culinary and Pre-arrival services.

The previous leaders of this company were not sure with the working of these teams before the implementation. The first three months after the implementation of this new leadership structure was characterized by a wide range of challenges. For instance, it suffered 200% and 100% turnovers on concierge and front desk services respectively. The team implementation was, however, not changed by the top officials of the company. With time the teams, however, adopted this new change of culture and worked towards improvements. They have now become cohesive units that work towards the achievement of goals that are set by the teams. The team’s success is seen in their ability to communicate and is motivated that they have a say in the company’s operations.

The General Managers are Elizabeth, Estelita, and Hoss. Elizabeth is the Area General Manager and the Vice President. She is based in the Washington D.C center. Estelita is the company’s General Manage. These leaders among others a have managed to develop a corporate culture that is focused on the customers. They have spearheaded in developing innovative methods that inspire employees and to ensure that guests receive a memorable experience. They have managed to provide exceptional services as a way of establishing customer loyalty. For the leaders to continue meeting its operation goal of providing 100% satisfaction to its customers, they have to reexamine the organizational culture that enables quality and show an understanding of quality principles. The leaders should further work towards engaging employees in all the necessary aspects for implementing quality (Heizer & Render, 2011). Inspection and Top Quality Management (TQM) are some of the strategies that the top managers can use in monitoring the continuous improvement of quality.

Organizing.

With the team concept of Ritz- Carlton, there was the need for each individual employee to contribute in creating and fulfilling the set goals. The main challenges that were seen initially are that some outgoing employees took the opportunity to force their ideas on others while others did not have clarity of the roles they were to play. Others were defeated with developing methods of duties execution which all contributed to a negative impact on the organization. Despite the challenges that the teams went through initially, the top management did not intervene. This gave the team members an opportunity to bond together, and they felt that they were an integral part of the company. The self governing teams came to an agreement and they decided their goals and methods of attaining those goals (Durdak, & Woodward, 2000).

The teams were involved in the process of making decisions. The main goals arrived on were to be successful in the new organizational structure different form the old one. This new challenging method required other innovative methods of working. The older hierarchical structure was eliminated, and the organization had to establish a different type of structure that gave power to all team members who were all held responsible in caring for their assigned functions. As the teams got used to the new structure of organization, they managed to develop excellent dynamic teams all working towards fulfilling their targeted goals. The members of these teams gained confidence in their ability to work under less strict supervision that characterized the older structure. The team members took an essential role in the decision making process, and gained more motivation as a result of their self empowerment. Therefore, the new organizational structure became more congenial and productive. The Ritz- Carlton organization has two hierarchical levels of organization this is indicated below:

Planning:

Effective planning is required in order to constantly be connected with the workers, and the activities they carry out in the company. The company’s leaders Inghilleri and Solomon have well set aspects in defining characteristics of strong leaders, which are; 1. To have a vision will help leaders to envision the organization’s direction and future and to be able to communicate these aspects with other members of the organization. 2. Alignment. The company leaders have a plan to simplify all forms of abstract and complex ideas into becoming those that can be accessible based on the efforts of the company. 3. The setting of standards. This third aspect is the implementation, establishing and enforcement of consistent and effective standards of performance. 4. The company leaders aim to provide the necessary support through providing the right resources and training to all the staff remembers (Inghilleri, & Solomon 2010).

With the introduction, of teams the company’s main goal was to implement the new structure of leaders. The plan was to compare the new structure of operations with the older one in order to streamline the plan. The CEO and other top leaders of this organization embarked on the provision of setting up anticipatory service through customer service. This would be possible by the use of software that creates the core principles of service to customers. Further another goal was to come up with a properly planned training curriculum that balances with the customers view points. The internal top priorities for the hotel company were on the provision of anticipatory services that they fill on questionnaires. This plan was with the goal of yielding to respect of customers services.

Such in-depth surveys help helped the company to provide all the requirements expected by the customers. This is through the provision of problem-based solutions. Having a well set plan is an aspect that enables the company to do the right thing. Right from the start, Ritz-Carlton plan was to provide genuine comfort and care to its customers. It pledged to provide the finest facilities and personal services to its guests so as to enjoy a relaxed, refined ambiences, warmth, and relaxation at its properties. Without a mission and a plan, the company success is likely to be impacted on in a negative. Having a plan does cost time and resources but the eventual fruits will be much better compared to lack of taking a risk? For Ritz-Carlton to continue being a successful company, it has to plan for continuous improvements all through the coming years. This will assist the company to remain competitive (Michelli, 2008).

Controlling.

Ritz-Carlton control measures are through the use of control charts that graphically represent data for a period of time. This graph shows the lower and upper limits for the business processes under control and is formed in a way in which any new data can be easily compared with the older performance data (Heifer & Render 2011). Another method of control that this organization uses is Pareto charts and diagrams. This method is effective in organizing defects, problems and errors showing the effort of the company to solve problems.

Recognizing these challenges presents the company with the effective strategies for forecasting future problems and correcting them before they occur. Through the fish bone chart, the company leaders can also recognize the Cause Effect relationship. This chart has four main sections. These are manpower, methods, equipment/machinery and material. Through the fishbone chart, the inspection points and quality problems are identified (Heizer & Render, 2011). Another aspect of control is through self examination. Every team has to take time to evaluate themselves and know their strengths and weaknesses. They examine the cycle times and work flows based on their assigned duties. The company also evaluates its non financial measures such as customer satisfaction

Conclusion.

This paper has presented the four main functions of management for Ritz-Carlton Company. It has indicated the specific controlling, leadership, organizing, and planning activities of the company. Many positive steps undertaken by the hotel business has resulted to positive feedback, but there is the need for the company to set plans that will see the continuous improvement of the company is maintained.

References

Heizer, J & Render, B (2011) Operations Management, Upper Saddle River, McGraw Hill. P. 6.

Inghilleri L, Solomon M (2010) exceptional service, exceptional profit. AMACOM Div American Mgmt Assn.