The Ritz Carlton hotel Case Solution
Critically evaluate the practices at Ritz-Carlton against the theoretical foundations and best practices of TQM
Total quality management is a criterion for managing people, task, and process to ensure the best quality services with guaranteed complete customer satisfaction. It is an aspect of management which solely focuses on quality as its prime success factor. Ritz Carlton has specially trained a team of the quality management executive that spends about one-fourth of its time on discussing and resolving the quality related matters. Weekly meetings are held to discuss products, services quality provided to consumers and competitive status of the hotel industry. Furthermore, Ritz Carlton believes that the secret to effective quality management is to hire efficient staff that understands the guests to effectively quality management is to hire efficient staff that understands the guests need and caters to them immediately. Quality planning in service industry is important but unfortunately, Ritz Carlton focuses on training front line staff to confirm guest satisfaction. The significance of measurement and process improvement has been completely ignored.
Forms and questionnaires asking to rate them filled out by the guests and secondary measures of determining customer satisfaction have been used as a means of process improvement for years, this methodology has proved to be ineffective since steps can be taken for improvement after a disgruntled customer points out what the hotel lacks. Furthermore, the suggestions and recommendations are received too late to prevent a customer from being affected by it. When the customer stays at a hotel, his perception of quality is declined by reliability, assurance, and empathy.
Ritz Carlton needs to realize that destructive targets tend to disturb employees rather than motivate them thereby affecting their performance. Intimidating targets and goals need to be eliminated because an important concept of attaining TQM is empowering the workforce to take a decision and to place trust in them that they would give their best to the organization. It is extremely critical for effective TQM to be proficient that Ritz Carlton eliminates the currently existing obstacles between departments. Research, design, marketing and the human resources department all have a common goal that is of providing quality services and attaining guest satisfaction and for this, they need to work collected rather than focus on separate goals.
Furthermore, TQM focuses on employee education and training, employees participation and guest attention and the organization has so far been successful in realizing these strategies in its daily operation to attain TQM however, Ritz Carlton fails to realize the importance of including leadership in employees, since the supervision of management is crucial to ensure that the quality of the service is not faltering at any point in time. TQM approaches vary from organization to organization but the aim of the entire quality improvement program at Ritz Carlton is not only to attain customer and to meet their prospects, but also to offer them with an impressive stay that goes far beyond their expectations. Financial data of neither the individual competitors nor the industry as a whole has any recorded or documented quality standards and other relevant documents. Furthermore, after winning the baldridge award, the company decided to reduce the cycle time (time delay between recognizing a customer need and satisfying it). This would improve the quality of the service due to which the customers will be happy and it would attract more customers in the future.
How is quality defined at Ritz-Carlton? How does the DQPR data in the spreadsheet indicate any significant problems?
Quality defined at Ritz Carlton is to provide better services to customers and satisfying their needs. Their vision is to provide create a luxury hotel group with the highest standards of the hospitality industry, designed to appeal to the discriminating leisure and corporate traveler.
By looking at the DQPR data in the spreadsheet, it shows significant problems such as guests complained that the reservation number lacking one digit, three guests made their reservation in 1996 at $139 but when the check they found that $165 rate being applied, long time at check in. these all issue are significant for the hotel and affects the future profitability. Furthermore, guests complained that they called from Phipps to have a cab sent to pick them however, the call was transferred to VP or no response from the hotel representative. Moreover, operators put the call on the park for a long time while they paged MOD and the PBX receive calls after 50 rings. These all will frustrate guests and will affect the future profitability of the hotel. ............................................