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Prize winner
Published by:
IBS Center for Management Research (2014)
Revision date:
17 pages
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Ritz-Carlton Hotels, a wholly-owned subsidiary of Marriott International, Inc, were known for the luxury and the world-class service they offered to their guests. Ritz-Carlton was the only service company to have earned the prestigious Malcolm Baldrige National Quality Award twice - in 1992 and in 1999. The company cultivated its reputation by training its employees to provide high quality service that conformed to precise specifications and standards. It provided more than 200 hours of initial and on-the-job training to its employees in the first year and 100 hours of training in the following years. The company was also known for its employee empowerment and treatment which enabled it to have the lowest rate of attrition in the industry. This case study looks at what makes The Ritz-Carlton one of the top ranked companies for training and development, and how training and development help maintain the unique culture and mystique of Ritz-Carlton as an exceptional service organisation. This case is meant for MBA students as part of a training and development/ organisation behavior/ customer relationship management/ service marketing course.
Learning objectives:
1. Understand the importance of employee training and development in offering excellent customer service in the hotel industry. 2. Analyse the various training and development interventions employed by Ritz-Carlton. 3. Understand the role of culture in maintaining the Ritz-Carlton’s excellent customer service. 4. Analyse the various training and development and other organisational development interventions used by Ritz-Carlton in reinforcing its unique culture. 5. Discuss the challenges faced by Ritz-Carlton going forward and how these can be overcome.
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