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Human Resource Management And Change Management

Personnel Management, considered for much of the post Second World Warfare period to be a necessary, albeit uninspiring and rule bound administrative activity has in recent generations evolved into Individuals Resource Management, (HRM), an integral function of modern day business organisations.

Enriched first by the task of seminal contributors like Maslow, Herzeberger, McGregor, and Kohn, and later by that of behavioural experts like Guest and Storey, the growth of HR Management has also been spurred by extensive environmental changes in regions of business ad current economic climate. With the progress of the marketplace market, along with technical innovations, instantaneous communication, monetary liberalisation and globalisation having intensified local and global business competition manifold, there may be widespread agreement on the criticality of HR in realising competitive benefits, market growth and financial success. The development of a knowledge structured current economic climate, as also the existing economic crisis, is generating home the importance of HR quality in business survival and success.

Modern day HRM consists of various functions like deciding after staffing requirements, choosing between contracted or hired workforce to complete these needs, selecting and recruiting the best option candidates, training and producing employees to enhance their knowledge and skills, ensuring powerful, and motivating employees through the combination of tactics, remuneration and rewards. Each one of these areas consists of numerous associated functions; staffing, for example features workforce planning, job and role standards, selection and recruitment, and formulation of settlement.

This study efforts to investigate and analyse the need, utility and role of specific important areas of HR, namely staffing (selection and recruitment), performance appraisal and management, and Compensation (remuneration and pay back) in enhancing organisational performance and success; it is completed with reference to the HR regulations and practices of the Ritz-Carlton Group of Hotels, with around 38, 000 employees, possibly the most successful and well regarded luxury hotel chain on earth.

The major strategic concern to be attended to is the "changes in competition", that the blissful luxury hotel market has practically collapsed and the low end accommodation is outperforming the high end of the hotel sector. Where do we go from here?

Overview of Ritz Carlton

The Ritz Carlton Group, now a subsidiary of Marriott International, runs almost 73 luxury hotels throughout the world, with 30 more tasks under development which includes fractional possession, private residences and serviced apartments, diversifying into an alternative prospective that the traditional hotel. Having started in Boston in 1927 with the first Ritz, the group presently manages in 23 countries in North and South America, Asia, Africa and Europe.

Under the former leadership of 1 of the companions Mr. Horst Schulze who was simply President and Main Operating Official (COO) from 1983 to 2002, it was the only company in the service industry to earn the renowned Malcolm Baldridge Country wide Quality Awards double, the Ritz Carlton group is well known for its give attention to optimising its worker strengths, abilities, and skills, to increase market share, improve functional and financial results and achieve competitive gain. A major element in the attribution of the, was the start of the "The Ritz-Carlton Management Centre" which has thousands of older executives, line managers and all degrees of leaders through their gates from every diverse companies (such as Finance, Food Services, Human Resources, Retail, Travel, Automotive and Medical care) which arrived to learn the Ritz-Carlton guidelines of service. The services of the centre are ideal when a company is seeking to create a lasting change, which is paramount to the near future as explained by xxxxx (2008), having a significant competitive advantage to outperform its competitor's and to increase its customers and staff loyalty.

Believing in the criticality of skilled, trained, satisfied and stimulated employees in achievements of customer satisfaction, the company has thoughtfully designed and skilfully integrated HR insurance policies and practices that are essentially powerful in characteristics and respond to environmental circumstances and needs. With the blissful luxury hotel industry being intensely competitive and every major city in the world having lots of higher end hotels providing the same type of rooms and other physical facilities, the management of the Ritz Carlton differentiates its offering chiefly through provisioning of superior service to its customers.

Known the world over as the girls and gentlemen (who serve women and gentlemen) of the Ritz, the employees of the string aim to provide customers with the ultimate Wow experience and sustain 100 % of these existing clients. The group's idea has a genuine emphasis on customer and staff satisfaction which other organisations try to aspire too. In the words of Simon Cooper, the ex - President and COO of the company from 2002 to 2010;

"It really is their dedication to always exceeding the prospects in our customers which insures that no matter what size our company may grow surrounding the world, we will never forget service is exactly what we built our reputation on as a hotel company, and our commitment is to grow the service quality combined with the profile of hotels that ought to reach 103 by 2011. "

The organisation has been compelled to take some drastic action of late because of the earnings at the 5 star group been diminished during the last period of time, reflecting the changes in the blissful luxury hotel industry and on August 12, 2010, the Ritz-Carlton declared that their new President and COO to be Mr. Herve Humler where the leadership change was effective from Sept 1, 2010. Mr. Humler is one of the original founders of the Ritz-Carlton Group in 1983 and has responsibility for leading brand functions and global development strategy.

Human Resource Insurance policies and Practices

4. 1 Staffing

Selection and recruitment tactics at the Ritz Continental have been created with thought and attention and aim to further the service quality and criteria of the company. With the company being a quality and market leader in its region of activity, the hotel group is definitely reassured of good response both to local adverts and demands for staff because of its central personnel pool. The group seeks people who have real Strength, Energy and Goal for all tasks within the company.

The organisation is rigorous on recruiting appropriate people. Whilst applicants with the right certification are preferred, great emphasis is paid to selecting people who are considered with the capacity of fitting along with the strong service culture of the group. The culture is of tactical importance and classed as "special", atlanta divorce attorneys location in the world, with excellent quality and service, customer and employee satisfaction is at the most notable of its priority.

Again whilst the group chooses people who have diverse skills and knowledge and instructs them the specialized requirements of individual careers, it essentially appears for individuals who are (a) saturated in work ethics, (b) depth oriented, and (c) marriage powered; the successful individuals are expected to genuinely care and respect guests and one another. Candidates must look people straight in the attention, be warm, friendly and with the capacity of displaying empathy. (Living Principles)

"You could have to ensure you are selecting for behaviour and ideals, not for skills and experience. You can't coach for behaviour and prices, you can train for skills, " says Chi. If individuals possess the right customer concentration, worth and a good attitude, anyone can learn to do anything in the hotel, Chi says"

The selection process is powered by customised and set up interviews, which have different techniques for different kinds of personnel. "A supervisor would be analyzed for emphasis and sense of competition, while a recruiter needs to be caring, relationship oriented, business savvy, and in a position to see the talents of other folks. " The department head and the General Manager of the individual hotels try all selection steps in order to make a "group decision" and also to show the potential prospect the value of the that each is to the company.

The company has elaborate training and retraining systems. It has 20 basic benchmarks that are constantly reinforced through training. While each employee will get 120 hours, i. e. three weeks of training every year, new entrants are given a 2 day advantages before they come in contact with any potential guest or existing staff to comprehend the culture and viewpoint and also 40 times of training in their first time to enhance this. The company has prepared considerable training materials on all areas of service delivery, including a set of greater than a thousand customer problems, as also recommendations for fixing them. Such problem dealing with is an vital portion of working out programme. Apart from such organized training many specific hotels of the group have their in-house training programmes.

"In the Ritz Carlton, Hong Kong, the hotel has adopted a number of forward-looking tactics. For example, all the roughly 300 staff are expected to learn one new thing each day and time is specifically planned in the beginning of each switch so they can do so. This may be about the task of another department, the overall visitor industry, or new properties within the group. "

Generally all employees are permanent personnel, this is to ensure that the culture and beliefs are retained at the best standard, as opposed to this, some very minimal positions are non permanent wish are not immediately related to the central business. (e. g. building maintenance can be sometimes outsourced etc. ) As suggested by Mello (2006, site 336) specifically in the service industries where higher turnover costs are common with the assessment of developing, the organisation utilizing a "strategic staffing initiatives" which will be the key to keeping fruitful employees and subsequently minimizing turnover/operating costs. To this the Ritz-Carlton Hotel Group is at the forefront of its sector making certain employee satisfaction remains high with 90 to 95% conformity. This employee's satisfaction is one of the key areas that are worked on, day in day out and "involves trust, communication, engagement and engagement" as explained by Tag DeCocinis, Regional Vice Leader, Asia-Pacific of the Ritz-Carlton Hotel Company.

At management level within the Hotel Group, many older positions are filled internally within the organization, around 70 to 80 % of the command positions says DeCocinis.

These individuals have proven skills, able to motivate and has functions to fit in to the organisation's culture. That is classed as a reward system because of their past performance and devotion and promotes a good promotional and development opportunities within the group, it also helps to serve international project roles.

4. 2 Performance Management

The Ritz-Carlton Hotel Group has an sophisticated performance appraisal program that aims to regularly examine employee performance and offer employees with responses about their performance. Performance Responses is used as opposed to Performance Appraisal, where the system is stored based on the organisation's strategic objectives and culture. Below is really as discussed by Mello (2006 page 428) will be the key differences between performance feedback versus performance appraisal. As is seen from the show below the responses is more a two way exchange where employer and employee communication informally their performance and discuss jointly planning future work activities.

Performance Feedback

Performance Appraisal

Time Period

Past, present and future



Link worker work activities to specific business targets &strategy

Create records, report performance problems

Nature of communication


One sided, downward, directive, "rebuttal" sometimes allowed

Employee role

Active Participant



Informal, Verbal

High formality, written forms


Spontaneous, ad hoc needed

As prescribed (usually total annual)

Basis of relationship



Role of Supervisor

Coach, motivator, partner

Authority figure


Participation, improved, targeted performance, improved relationship

Compensation decision; job directives

Mello (2006 webpage 428) Display 10. 1 Performance Responses versus Performance Appraisal

The performance management system of the company works on a few specific guidelines, namely informing employees about their obligations, enabling them to master the requirements of these job, creating ideas on increasing the grade of their result, informing them about how well they are doing in lots of ways and varieties, and training them constantly through their managers and peers on different careers and responsibilities.

Each worker gets a written report everyday on his actions face to face. Apart from these reports, complete personnel appraisals are carried out every half a year. With managers providing employees with responses, suggestions and corrective training on a regular basis, most employees improve so much by analysis time that such occasions tend to become times for party somewhat than apprehension. Such examination occasions are used to create action plans, build future goals, and guide employees on their future obligations. (Let's celebrate)

All of the Ritz-Carlton worker performance goals are aligned with the business goal, and from that to the hotel goal and in turn to the divisional goal, therefore concerning everyone in part of the entire organisation. Every single employee is inspired to create a plan to attain their goal for the next year predicated on guest satisfaction, financial performance and employee satisfaction. The extra or incentive by the end of the year is based on improvements if you raise the performance numbers you'll be rewarded.

Communication in line with the Ritz-Carlton is the main element to maintaining consistence performance management. Each staff having connections with the overall Supervisor every day and speaking readily about "what we enjoy and how exactly we can improve is important" says DeCocinis. All general managers has an insurance plan of experiencing a breakfast meeting with 10 to 15 employees from different departments monthly, for the reason that speak openly and informally as of this gathering for the intended purpose of what each staff is focusing on and what can be upgraded is a very positive management plan and everyone learns from the appointment.

Another important performance management system in place is that employees should document either their own or another employees mistakes. It is very important when someone makes a blunder that the right action is taken to resolve it as soon as possible, otherwise it could reoccur. The group recognises "people when planning on taking ownership of an problem and being area of the solution to resolve it" Yeung (2006).

4. 3 Compensation

Whilst the company has very demanding recruitment insurance policies, (20 people are, on an average, picked from 2000 applicants), it provides good remuneration and facilities. The company thinks in maximising staff retention by using a combination of good working atmosphere, excellent training, good profession prospects, opportunity to travel, and good remuneration. Whilst the company does standard and makes an attempt to keep its remuneration competitive, it is nevertheless overtaken sometimes in this area by other hospitality organisations.

Mark DeCocinis states "if you expect your visitors to be the best, you must pay at the top of the market"

"We do still benchmark on remuneration, " says Ms Lau, "but regard personnel retention as something relies more on other factors. These include training, creating long-term job opportunities, and helping employees to find the right work-life balance. "

Ritz-Carlton employees that can multi-task (i. e. stand set for others etc. ) are recognised and rewarded appropriately. The group reward and motivate their workers who exceed their objectives through "The Ritz-Carlton Incentive Awards". The organisation dispenses "Gold Standard Coupons" to the people employees who exceed the hotel specifications for quality and service, these coupons are then exchanged for weekend accommodations at the hotel group or at the hotel's gift idea shop for goods. Additional to this is every 1 / 4, a "Five Star Employee Honor" is awarded which entitles the champion to a five-night stay for two people at any Ritz-Carlton hotel on earth, and to supplement this, rounded trip airfare tickets and US$500 extra cash is given.

Strategic Organisational Performance

The Ritz-Carlton is known as to be one of the very most successful organisations in the luxury hotel business. Globally known for the quality of its service and exceptional surroundings, the company has in recent years not preformed economically which diminishing income in the organisation. The intensifying competition in the hospitality sector notwithstanding, the organisation has grown sharply over the last ten years; spurred by its access into new market segments, (especially in China), an alteration in orientation towards more everyday style may be appropriate or not?. The advantages of spas that are controlled by the best providers on the globe, and the starting of restaurants run by super star chefs like Gordon Ramsay and Wolfgang Puck all strategically aligned to provide the hotels unique personality may be better matched in a far more buoyant monetary environment rather than today local climate. Knowing that the real tactical concern, the change in competition within the hotel sector, i. e. the lower end accommodation outperforming the blissful luxury end, with regards to staffing, will have an impact on a) downsizing of staff, b) other competitors depleting the personnel pool of both long lasting and temporary potential employees, c) potential loss of Ritz-Carlton valuable employees to competition, d) loss of "Branding" (culture, connections etc. ). In performance management the impact of the organisation not carrying out as measured on its outputs would straight affected worker performance as they are both aligned within the company HR strategy. With regards to compensation pay freezes, no bonuses or incentivises by the end of the entire year would be integrated, staff retention will be afflicted, less career prospects and less opportunities to visit within the organisation. The "The Ritz-Carlton Motivation Awards "and the "Five Star Employee Award" would be disbanded. Every one of the above would have a major impact on the existing HR plans within the Ritz-Carlton organisation that your retention of the high performers being critical to the organisation also. What is to be done relating to this now?

Human Resource Management Analysis

The first thing to be completed can be an Organisation-Level Diagnostic Model which will determine will be the insurance policies aligned with the organisational goals. That is a critical source which will help present problems and symptoms. The procedure of Diagnostic as mentioned by Cumming and Worley (2008 web page 87) is the fact that Examination is a collaborative process between organizational customers and the advisor to collect important information, evaluate it, and bring conclusions for action planning and treatment. This understanding and results of how the organisation is currently performing provide valuable information to create change.


Cumming and Worley (2008) Figure 5. 2 (webpage 93)


Dramatic changing environment Strategy - keep quality and service at 5 superstar - Late bookings - discounted rooms?

Competitors Ability Technology-SAP payroll systems, palm scanners etc.

Customers / Customers Performance Management - outsource sales for rooms?

Treat of New Entries -alignment with Entertainment Company (MCD)

Ease of Choice Composition - Self Controlling Clubs, possible outsource sales

Health & Basic safety Measurement Sys. -customer satisfaction, occupancy rates,

Golf Courses / Academy - managing information systems, mystery customer

Culture- No. 1 for service & quality, No. 1 for worker &

Customer satisfaction, what do I achieve today?

From the aforementioned analysis and specifically with reference to the Human Reference Systems, the details for selecting, growing, appraising and pleasing organisation people, the organisation success is enough as there exists good alignment between both with only minimal changes to be looked into.

The second research that is usually to be applied is to complete an "Organisational Development and Change Plan" based on the "Force Field Evaluation" for normative planned change. Management is focused on change and by using Lewin's Change Model theory and using an incremental magnitude of change, the model below can be implemented.



Identify a specific Change

Identify forces for and against change

Prioritise the forces

Develop strategies to defeat opposing and reinforce supporting forces

Implementing Recommendations

With these information to hand and being more critical, the following

recommendations can be executed to Senior Management within the organisation.

With mention of staffing lots of options are open to management for action. The choice and recruitment process is supportive of the HRM system with just a few weaknesses to be attended to. A lender of pre-approved potential employees should be developed for every and every hotel within the organisation, both long lasting and momentary employees to protect sick days, holidays etc. as this would reduce the recruitment timeline. A advice to the HR Manager or General Director for each and every hotel should be to execute a backward strategy on the history of timelines of past recruitment drives as recommended by Mello (2006 page 339), work backwards from enough time employees are needed to start employment, which will determine when recruiting starts. This bank or investment company of potential employees will eliminate any delays in time, swapping or commencing new employees with the organisation. As to keep the turnover of personnel to the very least (i. e. below 15% would be appropriate within the service industry for turnover, xxxxx(2008), the selection of individuals at recruitment level should give attention to a long-term romance or job with the company. The selection process to focus on a potential person theme, what do they really enjoy? What's their purpose in life? What motivate them? The duty is to look for personnel who truly enjoy contact with people and respect and care about others. This can benefit the organisation and the employee in the long run. All older management positions should be loaded in-house after the relevant experience and leadership training from "The Ritz-Carlton Leadership Centre" is obtained. It is important to safeguard the culture of the company from the top down as well from the bottom up. An "Empowerment" strategy should be implemented as soon as possible. This will involve flattening the company and creating "Self Managing Categories or Teams". Reducing middle management (layoffs) or redeploying them anywhere else where required within the company will certainly reduce overall costs and present real motivation to the present employees for self applied management. The main one important point about his advice is to get consensus over the complete organisation because of this process.

The Performance Management system is very much indeed aligned with the organisational goals with the idea that employee satisfaction brings about guest satisfaction which contributes to good financial results. The true emphasis with is on outputs not inputs as complete in Mello (2006 site xxxx) and must extremely well measured so that performance can be analysed in depth. A suggestion is for every single employee to come up with an idea / group of targets to reach an objective for another time, measured by guest satisfaction, worker satisfaction and financial performance. These goals or goals will be regularly watched by the General Manager and HR Supervisor each month with informal lunchtime meetings with up to 10 folks from different department going to. Here the worker can be openly praised before his colleagues predicated on improvements benchmarked on the individual goals. By using "Victor Vroom's Expectancy Model", this will give real "intrinsic desire" to the employees, in return the employee will feel respected, recognized and perceive be engaged with important areas of the hotel. Ritz-Carlton Group using the "Expectancy Mode" specified below will have valued satisfied employees and the performance options will be completely aligned with the organisations needs as detailed by Mello (2006 page xxxx).

Assists managers to determine the outcomes that all employee values

Managers should determine performance levels in measurable terms

Managers can determine whether desired levels of performance are attainable

Managers can link desired performance to final results desired by employees

Clarifies that perceptions, not truth determine motivation

Clarifies that motivation will be highest when employees perceive many benefits, but not actually many rewards

Compensation being rewarded by esteem, trust, loyalty and a greater sense of empowerment is the right course for the company. The ultimate strategy is to build an appropriate mix of financial and non-financial compensations systems. Direct settlement in salaries should be aligned with the best in school within the industry (fairness sliding scale salaries set up by job classification) & increase bonuses such as bonus deals, commissions, training and development to "The Ritz-Carlton Leadership Centre" to attractive and retain the best performers. With regards to indirect compensation, in addition to the legally required a full review should be undertaken for the indirect options such as retirement life pension plans, life insurance, flexible working strategies etc. to ensure they are relative to the market place. The recommendation for the "Self Managing Clubs" will enhance the advice to utilise team based versus specific pay based on performance which will encourage flexibility and co-operation within the clubs.

Contribution of HR Regulations to Organisational Performance

The amazing success of the hotel is attributed by many industry experts to its superior service quality and customer target. Such a concentration has helped the Ritz to constantly differentiate its products and services from the competition, enabled it to expand fast without compromising its dedication to its customers and allowed it to ride away bad years without getting rid of business or diminishing its operational and financial results.

Being an associate of the service industry, the organisation is people influenced and significantly dependent upon the quality and performance of its workforce for the realisation of its tactical and business goals.

The company has created its HRM plans in line with its strategic goals and the complete HR system is targeted at delivering of high quality expectations. They have unilaterally adopted staff oriented and customer focussed HR procedures and procedures that are essentially Best Practice in aspect and made to produce high degrees of employee production. The Ritz treats its employees with the utmost dignity both within and outside the organisation which is publicly proud of their knowledge, skills, abilities and contribution to the company.

The company pays great focus on training, a task that continues throughout the working life of all employees, enhances their knowledge and skills and optimises their performance. Team soul, corporate take great pride in and individuals dignity are normal to all or any employees; a General Manager is likely to pick up a burnt cigarette from the carpet, even as the junior most employees have powers to invest considerable amounts of money and never have to take permission of their superiors, if it is to help expand guest satisfaction. Ritz employees are recognized to go to great lengths to ensure guest satisfaction, leading their friends to come over and over and increasing the hotel's customer retention to dizzy levels. Such motivation is proof the role of Man Source Management in the impressive success attained by the company.


HR management practices have plainly come quite a distance since the times when the obligations of staff departments were restricted to recruiting people, keeping leave files, and organizing salary sheets. HRM is now felt to be always a critical management function that is instrumental in obtaining the strategic objectives of business organisations.

Whilst organisations are still divided on the adoption of Best Fit or Best Practice strategies, or on transitioning over from Command and Control systems to ones that are most participative, there exists little uncertainty over the importance of careful selection, good training, effective communication, performance appraisal and attractive compensation in increasing organisational performance and competitive gain.

Greater numbers of organisations, especially those in the data sector are also finding the benefits of employee engagement and empowerment in increasing organisational development and employee determination and motivation; which results in enlargement of competitive advantage and business success.

The Ritz Carlton is an important exemplory case of the brilliant operational and financial results that can be achieved by organisations in the service sector through well planned and efficiently implemented employee focused HR practices on a consistent basis. The organisation's commitment to its employees in good and bad times and its adoption of staff empowering HR regulations and routines has empowered it to attain startling levels of customer service and leadership in quality, market share, and reputation.

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