Human Resource Management And Change Management Essay Example

traditional hotels with projects like fractional ownership, private residences, and serviced apartments across 23 countries worldwide. Former President and COO Mr. Horst Schulze led the Ritz Carlton Group from 1983 to 2002 and under his leadership they received the Malcolm Baldridge National Quality Awards twice.
The company's reputation lies in its emphasis on utilizing employees' strengths, abilities, and skills to enhance market share, improve operational and financial performance,and gain a competitive edge.
A key factor in the company's success is the establishment of "The Ritz-Carlton Leadership Centre," which attracts executives,
managers,and leaders from various industries.These individuals attend the centre to learn about the Ritz-Carlton principles of service. The Centre offers services ideal for companies seeking sustainable changes necessary for future success (xxxxx 2008). These changes not only provide a significant competitive advantage but also boost customer and employee loyalty. The company strongly believes in having skilled, trained, satisfied, and motivated employees as they play a vital role in achieving customer satisfaction. Therefore, the company has carefully planned and expertly executed HR policies and practices that can adapt to changing environmental circumstances and demands.

In the highly competitive luxury hotel industry, the Ritz Carlton distinguishes itself by delivering exceptional service to its customers. The employees at Ritz Carlton, known as "ladies and gentlemen," are committed to providing a wow experience and retaining existing patrons. This focus on customer and employee satisfaction is also embraced by other organizations.

According to Simon Cooper, former President and COO of the company from 2002-2010, exceeding clients' expectations has always been a top priority for the company. As they continue to expand their portfolio of hotels, Ritz-Carlton remains committed to improving service quality. However, due to

declining revenue in recent years, significant changes have been made by the administration. On August 12, 2010, Mr. Herve Humler was announced as the new President and COO of Ritz-Carlton.Mr. Humler, one of the original founders of Ritz-Carlton Group in 1983, now oversees brand operations and global growth strategy. Ritz Continental has developed careful staffing and recruitment practices to maintain their renowned high service standards. Positive feedback for our local advertisements and staff requests reflects our prominence in the luxury hotel industry. We are looking for individuals who demonstrate genuine intensity, energy, and purpose in all positions within our organization. In addition to diverse skills and knowledge, we prioritize candidates with strong work ethics, attention to detail, and relationship-building abilities. Successful candidates must genuinely care for and respect both guests and colleagues by making direct eye contact while displaying warmth, friendliness, and empathy. Our hiring process focuses on selecting individuals based on attitudes and values rather than just skills and experience through tailored structured interviews for different positions.The text highlights the qualities required for directors and recruiters, as well as the involvement of division heads and General Managers in the selection process. The company has a comprehensive training system that includes ongoing reinforcement of 20 core standards through 120 hours (or three weeks) of training per year for each employee. New hires receive a two-day introduction to company culture before interacting with guests or current employees, followed by an additional 40 days of training within their first year. Extensive training materials cover various customer issues and problem-solving techniques. In addition to systematic training provided by the company, many hotels within the group have their own

in-house programs. The Ritz Carlton in Hong Kong promotes daily learning among its staff members, allocating time at the start of each shift for this purpose.The Ritz-Carlton Hotel Group places significant importance on employee satisfaction, recognizing that trust, communication, engagement, and commitment are vital factors. According to Mark DeCocinis, Regional Vice President of Asia-Pacific for the Ritz-Carlton Hotel Company, the group ensures a compliance rate of 90 to 95% in order to maintain high employee satisfaction levels. The group's strategic staffing initiatives focus on retaining productive employees and reducing turnover and operating costs in service sectors with high turnover costs. Mello (2006) emphasizes the importance of such initiatives in achieving these goals. To achieve this, most senior positions within the Hotel Group are filled internally through their direction degree program, accounting for approximately 70 to 80% of leading roles. These individuals have shown accomplishments and possess the ability to motivate others while assimilating into the organization's culture. The group also has an internal promotion system that rewards past performance and loyalty while providing opportunities for advancement and development within the organization. This system is also beneficial in filling international assignment roles. Additionally, although most employees are permanent staff members who uphold a high standard of culture and philosophy at all times; there are some temporary positions that do not directly relate to the core business activities - such as outsourced building maintenance or other departmental tasks within tourism industry or new properties belonging to the group itself.

Note: have been preserved without any changes madeThe company has an extensive performance assessment program that evaluates employee performance regularly and provides feedback. This approach to feedback aligns

with the organization's strategic goals and culture, unlike traditional appraisals. According to Mello (2006, page 428), there are key differences between performance feedback and appraisal, such as the time period covered and the focus on linking work activities to business objectives for feedback. The exhibit compares performance feedback and appraisal, highlighting that feedback is a two-way exchange where both employer and employee communicate informally about performance and plan future work collaboratively. This communication involves creating records, documenting public presentation jobs, and engaging in spontaneous ad hoc communication when necessary. The relationship between supervisor and employee is based on collegiality, with the supervisor taking on roles like coach, incentive provider, and providing spouse-like support. This type of feedback leads to increased engagement, improved targeted performance, better relationships, compensation determination, and task directives.According to Mello (2006 page 428), the performance management system of The Ritz-Carlton company follows specific rules. These rules include informing employees about their duties and helping them understand job requirements. They also involve generating ideas for improving output quality and providing feedback through daily reports and detailed personnel assessments conducted every six months.

Directors at The Ritz-Carlton actively provide daily feedback to employees, along with suggestions and disciplinary preparation. The company places great importance on performance management, viewing assessment occasions as opportunities for improvement rather than sources of anxiety. During these occasions, action plans are created, and future goals are set with guidance from supervisors.

All employee performance goals align with company objectives to involve everyone in the organization. Employees are encouraged to develop a plan focusing on guest satisfaction, financial performance, and employee contentment. Bonuses or incentives are given at the end of the year

based on performance enhancements.

The Ritz-Carlton emphasizes the importance of effective communication for consistent performance management. DeCocinis considers daily interaction with the General Manager and open discussions about improvements and enjoyment crucial. To promote learning, monthly breakfast meetings are held between general directors and employees from various departments where informal conversations about work improvement opportunities take place.The Ritz-Carlton values the documentation of mistakes by employees, as it is an integral part of their performance management system. This helps in resolving issues promptly and preventing recurring errors (Yeung, 2006). The company has a rigorous recruitment process and selects only a small percentage of applicants. It prides itself on offering competitive pay, excellent facilities, and maximizing employee retention through creating a positive work environment, extensive training opportunities, good career prospects, travel possibilities, and competitive salaries. However, there are instances where other hospitality organizations offer higher compensation than Ritz-Carlton. Mark DeCocinis believes that paying employees at the top of the market is crucial for attracting top talent. Ms Lau stated that while Ritz-Carlton benchmarks wages, they also consider factors such as preparation, long-term career opportunities, and work-life balance in order to retain their staff. To incentivize employees who excel at multitasking and exceeding expectations, the Ritz-Carlton offers the Ritz-Carlton Incentive Awards. These awards include Gold Standard Coupons that can be used for weekend stays or hotel merchandise as rewards for surpassing hotel quality and service standards.In addition, the Ritz-Carlton offers a Five Star Employee Award on a quarterly basis. This award grants the recipient and a guest a luxurious five-night stay at any Ritz-Carlton hotel worldwide. The package also includes round trip flight tickets and $500 in spending money.

Despite recent financial setbacks and declining revenues, the Ritz-Carlton has maintained its success as a luxury hotel company by delivering exceptional service and creating inviting environments that have contributed to its renowned reputation.

Despite fierce competition within the hospitality industry, the administration has achieved substantial growth over the past decade by expanding into new markets, particularly in China. However, given the changing economic climate, it may be necessary for the administration to reevaluate its emphasis on casual elegance. This potential reassessment could involve partnering with globally recognized spa operators and restaurants led by celebrity chefs such as Gordon Ramsay and Wolfgang Puck.

While these strategic changes aim to impart each Ritz-Carlton hotel with its own distinctive character, they may be more suitable for an economically prosperous environment. Currently, one of the key strategic challenges faced by the Ritz-Carlton is adapting to evolving competition in the hotel sector – specifically, transitioning from high-end accommodations to lower-priced alternatives. This shift will not only impact staffing levels through possible staff reductions but also result in competitors attracting both permanent and temporary employees, thereby depleting Ritz-Carlton's pool of talented staff members.The risk of losing valuable employees to competitors could lead to a loss of branding, company culture, and relationships. If the administration fails to meet its objectives in performance management, it will directly impact employee performance. Furthermore, compensation wage freezes mean no year-end bonuses or incentives, which will affect staff retention and limit career opportunities within the organization. The discontinuation of "The Ritz-Carlton Incentive Awards" and the "Five Star Employee Award" also has significant implications for current HR policies at Ritz-Carlton as high-performing employees are crucial. To address this issue while

keeping all intact, conducting an Organisation-Level Diagnostic Model is necessary to assess policy alignment with organizational goals. Collaboration involves collecting relevant information, analyzing it, and drawing conclusions for action planning and intervention. Understanding an organization's current operations is essential for designing effective strategies for change. In the case of Rivals Power Technology-SAP, they utilize paysheet systems and manus scanners while outsourcing sales for suites in their customer/buyer performance management. They prioritize alignment with Entertainment Company (MCD) for new entries.In addition to self-managing teams, the organization may consider outsourcing sales to improve choice structure. Health and safety measurements include customer satisfaction, tenancy rates, and managing information systems for Golf Courses/Academy. The culture within the organization emphasizes being number one in service & quality as well as employee & customer satisfaction. The analysis conducted shows good alignment between Human Resource Systems and overall administration effectiveness. Moving forward, the next step is creating an "Organisational Development and Change Plan" based on Lewin's Change Model theory which proposes the "Force Field Analysis" model. This involves identifying a specific change, determining forces that support or oppose it, prioritizing these forces, and developing strategies to overcome opposing forces while reinforcing supporting ones.

Based on this information, Senior Management should implement these recommendations with greater scrutiny. There are various staffing options available to management. While the HRM system is supported by the selection and recruitment process, there are some weaknesses that need attention. To address this issue, it is suggested that each hotel establish a pool of pre-approved potential employees for both permanent and temporary positions to cover absences such as sick days or vacations.The recruitment process can be expedited by reducing

the time taken to find new employees. To determine when recruiting should begin, a backward strategy must be developed by either the HR Manager or General Manager for each hotel, considering previous recruitment timelines. By having a readily available pool of potential employees, delays in replacing or onboarding new staff members can be eliminated. In order to minimize staff turnover (as turnover below 15% is considered acceptable in the service industry), it is important to focus on identifying individuals who are committed to establishing a long-term relationship with the company during the recruitment process. Their personal interests, life goals, and motivations should be assessed to identify those who genuinely enjoy interacting with people and show respect and care for others. This approach will benefit both the company and its employees in the long run. To maintain a strong company culture, it is recommended that all senior management roles be filled internally after individuals have gained relevant experience and leadership training from "The Ritz-Carlton Leadership Centre". Ensuring the safeguarding of company culture should start with top-level management and extend throughout all levels within the organization.A suggested strategy for achieving this goal is to implement an "Authorization" approach, which involves flattening the organizational structure and establishing self-managing groups or teams. This can be accomplished by reducing middle management through layoffs or reassignment to other areas within the company as necessary. These actions result in cost reduction and motivate current employees towards self-direction. However, it is crucial to obtain consensus from all employees throughout the organization in order to successfully implement these recommendations.

The Performance Management system closely aligns with organizational goals and emphasizes the connection between employee satisfaction,

guest satisfaction, and positive financial outcomes. It is essential to measure performance effectively in order to gain a comprehensive understanding of outcomes rather than inputs. As discussed in Mello's book (2006, page xxxx), employees can create a plan or objectives for the upcoming year based on guest satisfaction, employee satisfaction, and financial performance.

To monitor these goals each month, the General Manager and HR Manager will have lunch meetings with groups of up to 10 employees from different departments. During these meetings, employees can be publicly recognized for improvements achieved in relation to their individual goals.Using Victor Vroom's Expectancy Model in this manner can generate genuine intrinsic motivation among employees, fostering a sense of value, recognition, and engagement in crucial aspects of the hotel's operations. By following this model, directors can achieve employee satisfaction and appreciation while aligning performance measures with the organization's requirements as described by Mello (2006, page xxxx).

The text further proposes the utilization of to assist directors in identifying the specific results that each employee values. It suggests that directors should clearly define public performance levels using measurable terms and evaluate whether these desired levels are realistically attainable. Moreover, they can establish a correlation between desired performance and the outcomes that employees desire.

It emphasizes that motivation is determined by perception rather than reality. The highest level of motivation is achieved when employees perceive numerous benefits without necessarily receiving an abundance of rewards. Compensation should be provided through respect, trust, loyalty, and increased authority within the organization.

Ultimately, it advocates for implementing an appropriate combination of financial and non-financial compensation systems as a strategic approach.The text emphasizes that motivation is determined by perception rather

than reality. Employees are most motivated when they perceive multiple benefits, even if there aren't necessarily many rewards. Respect, trust, loyalty, and an increased sense of authority are considered appropriate compensation for the organization. The ultimate strategy involves creating a suitable combination of financial and non-financial compensation systems.

The recommendations from "The Ritz-Carlton Leadership Centre" suggest benchmarking direct compensation such as wages against industry standards and considering adjustment based on occupation categories. It is also advised to offer additional incentives like bonuses, committees, training opportunities, and development programs to attract and retain top performers.

To ensure competitiveness in the market, conducting a comprehensive review of indirect compensation methods such as retirement pension plans, life insurance coverage, and flexible work arrangements is recommended.

Managers should strive to create a positive work environment by understanding what motivates employees and aligning their performance with desired outcomes. This includes providing a mix of financial and non-financial rewards that promote respect, trust, loyalty, and empowerment within the organization.It is crucial for wages to align with industry benchmarks and there should be a fairness sliding scale based on job categorization. The Ritz-Carlton Leadership Centre can provide additional incentives such as bonuses, commissions, training, and development opportunities in order to attract and retain high-performing individuals. Indirect compensation options like retirement pension plans, life insurance, and flexible work arrangements should also be competitive in the market after undergoing thorough review. Self Managing Teams are recommended as they foster flexibility and cooperation within teams. It is also suggested to use squad-based wage instead of individual wage. HR policies play a significant role in organizational performance. The hotel's success in the industry can be attributed to its superior

service quality and client focus that distinguishes it from competitors. This allows the hotel to grow rapidly while remaining committed to clients even during challenging times without compromising business or results. The organization's success in the service industry heavily relies on the workforce's quality and effectiveness.The company has formulated HRM policies that align with its goals in order to achieve strategic and business objectives.These policies prioritize employees' well-being while focusing on customer satisfaction, aiming to enhance productivity.The company highly values both internal and external employees by recognizing their knowledge, accomplishments, skills, and contributions.Ongoing training is prioritized for all employees in order to enhance their knowledge, skills, and performance, thereby promoting teamwork, corporate pride, and dignity among the staff. At Ritz, employees are given the authority to make financial decisions without seeking permission as long as it benefits guest satisfaction. They are renowned for exceeding expectations to ensure high customer retention rates. This showcases the effectiveness of Human Resource Management in contributing to the organization's success.

Over time, HR management practices have evolved significantly from merely handling recruitment, leave records, and salaries to playing a crucial role in achieving strategic objectives. The acceptance of either Best Fit or Best Practice approaches and transitioning from Command and Control systems to more participative ones continues to be an ongoing topic of debate among administrations.

The importance of careful selection, thorough preparation, effective communication, performance evaluation, and attractive compensation cannot be denied when it comes to improving organizational performance and gaining a competitive advantage.

Moreover, an increasing number of organizations in the knowledge sector are recognizing the advantages of engaging and empowering employees as a means to enhance organizational innovation, employee commitment,

and motivation. Ultimately leading towards a stronger competitive advantage and business success.The Ritz Carlton is a shining example of how service sector organizations can achieve outstanding operational and financial results by consistently implementing HR practices that prioritize employees. Despite facing challenges, the company's dedication to its employees and adoption of empowering HR policies have enabled them to excel in customer service, quality leadership, market share, and reputation.