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Task 1

Discuss about the Analysis of Ritz Carlton Case Study for Portman Ritz Carlton.

The report will be based on the analysis of the case study of the Ritz Carlton Hotel which has entered China by taking over Portman Ritz Carlton Shanghai. The issues that have taken place between the employees and the top management will be discussed in the report in detail.

  1. Ritz Carlton is considered to be one of the well-known names in the hotel and hospitality industry. The leadership style that was followed in Ritz Carlton was based on a problematic and difficult relationship between the Chinese employees and the foreign employers who took over the Shangri La Group (Amanchukwu, Stanley & Ololube, 2015).
  2. The new team that had the responsibility to incorporate the business style of Ritz Carlton in the different operations conducted by the organization after the takeover of Shangri La was based on three major elements which are employee satisfaction, guest satisfaction and profits. The employee satisfaction forms the most important part of the elements that are considered by the management of Ritz Carlton. The guests are satisfied with the help of services that are provided by satisfied employees and this further helps the organization to gain profits in the industry (Balon, 2014).
  3. Mark DeCocinis was appointed as the general manager of Ritz Carlton in the year 1997 after the take-over of Shangri La by Ritz Carlton. The general manager had entered China with an experienced team which would be able to help in the transition process in the new market area. The team had to however face huge challenges based on the ways by which the transition can be completed with respect to the external operating environment. The standards of operations of the Portman Shangri La were below the operational levels of the Ritz Carlton tradition that is followed in different areas of the world (Bolden, 2016). This was a major concern for the management of Ritz Carlton and the team of top managers had mainly aimed at incorporating these traditions within the work process of employees. The main advantage of appointing the foreign managers in the top management positions is related to the knowledge that has been gained by the experienced team about the operating styles of Ritz Carlton. On the other hand, the disadvantage is based on the differences that are evident between the working style of foreign managers and the Chinese employees (Cox, 2016).
  4. Portman Shangri La had around 1067 employees who belong to average age of mid-twenties to late-twenties. The general manager had an impression that the staff of the hotel was quite large. He also wanted to provide an opportunity to the local employees of getting an experience to work in the Ritz Carlton Group. The expatriates of the hotel were not retained by the management in the top positions which were already taken by the foreign managers (de Barros et al., 2015). The local employees were also ready work in the new set-up until they had some major problems. The general manager thereby felt the need to overcome the issues that were occurring between the foreign employers and the Chinese employees. The young Chinese workers were in high demand in the job market and this helped in changing their positions easily. The three major ways which were implemented by the general manager to solve the issues are,
  • Changing the style of relationship that is shared between the employees and the foreign managers. The relationship that is shared between the employees and the foreign managers need to be effective so that they are able to coordinate with each other in the different work processes (Donate and de Pablo, 2015).
  • The dining room of the employees in the hotel was renovated completely which helped in increasing the motivation levels of the employees. The changes in dining areas will also provide the motivation that is required.
  • The management also decided to bring new local recruits within the existing workforce which can be helpful in their professional development and the profitability of the organization as well (Edwards et al., 2015).
  1. The three-level pyramid that has been created by the general manager of Ritz Carlton is based on the ways by which the organization can achieve the desired objectives with the help of satisfied and happy employees. The change process in an organization is totally based on the satisfaction levels of the employees. The first and base level of the pyramid is thereby related to the levels of satisfaction of the employees. The highest paid employees of the organization are not always the happy ones. The monetary rewards form an important of the happiness and satisfaction levels of the employees. The opportunities, pride and respect are a part of the true happiness levels of the employees (Gold & Thorpe, 2016). The management has thereby tried to increase the employee satisfaction levels with the help of different initiatives. The dining room of the employees was redesigned completely by the management. The management thereby aimed at creating a respectable and civilised area of dining for the employees. The sense of professionalism was also instilled within the employees so that they are able to align their habits with the other employees of the Ritz Carlton Group (Ljungholm, 2014). The communication channel that was created between the management and employees was also open in nature. The satisfied employees thereby made way for the high satisfaction levels of the guests who visited the hotels. The high levels of guest satisfaction further helped in increasing the profit levels of the employees and the attrition rate of employees had also decreased in the years of its operations. The pyramid concept was thereby explained to the employees so that they are able to understand its importance and also become a major part of the entire process. This will be helpful for the organization to establish its operations in the new market area (Lopez, 2014). The employees form the base of the change management based plans that are formed by the organizations especially in foreign market areas. The hospitality industry is mainly based on the service of the employees for increasing its profits. The management of Ritz Carlton has also provided huge importance to the satisfaction levels of the employees. The services that are provided by the satisfied employees will further be able to create a loyal and satisfied customer base as well. This is an important factor which helps in increasing the profitability of Ritz Carlton (Muchiri & Kiambati, 2015).
  1. Culture of an organization is based on a system of shared values, beliefs and assumptions which show people the activities which appropriate or note. The values have an influence on the behaviour of the employees and the performance of the organization. The strong culture of the organization is created when the employees show consensus to the values. The leadership of the business is based on the culture and work process that is followed by employees. The gender of employees also plays a major part in the ways by which the organization is able to manage them in an effective manner (Norris, 2017). The leadership roles that are provided to employees are also based on their gender and levels of discrimination. The diversity level of employees is an important part of the ways by which the leaders are able to manage their work process in an effective manner. The strength of culture based on business leadership is high as the culture of the employees are managed easily if they follow a strong culture. The weakness of this culture is able to affect the leadership style of the managers. The strength of the gender in modern organizations is based on the positions that are provided to the male and the female employees (Paliszkiewicz, Go?uchowski & Koohang, 2015). The weakness on the other hand is based on the discrimination that is evident in some of the organizations based on gender. The major strength of diversity in the organization is thereby based on the ways by which the organization is able to use the strengths for the purpose of increasing innovation levels. The weakness of diversity of the organization is related to the ways by which the employees need to be managed by the leaders in an effective manner (Renz, 2016).
  2. The leadership style that is followed in organization is able to affect the change management process in a huge manner. The leaders are an important part of the change management based activities that are performed by the organization. The culture that is followed by the organization and the strength of the culture is also affected by the leadership style. The leadership style that has been depicted by the general manager of Ritz Carlton is based on the ways by which the satisfaction levels of the employees can be increased (Riaz & Khalili, 2014). The satisfaction levels of the employees are able to increase the satisfaction of the customers. The concerns of the employees were also taken in a serious manner by managers of the organization. The top management of the company is therefore responsible for managing the diverse groups of employees in the hotel. The levels of relationships between the employees and the top level management is thereby important for proper management of diversity and gender based issues (Solomon, Costea & Nita, 2016).
  3. The motivation levels of the employees in Shangri La was not affected by the takeover. The satisfaction levels of employees in the had increased with the steps that have been taken by the management. The loyalty of employees was also affected in a positive manner by the take-over operation. The multi-ethnicity of the employees was also affected by the take-over and the management and employees can collaborate with each other.
  1. The three major leadership styles that can facilitate change in an organization are, the transformational style which can help the managers to work together with the employees in a collaborative manner. The democratic leadership style can be followed to achieve the organizational objectives with the support of employees. The cross-cultural style of leadership is based on the ways by which the employees and managers are able to cooperate with each other (Renz, 2016).
  2. The leadership style that has been followed by the management of Ritz Carlton is based on the ways by which the satisfaction levels of the employees can be increased in an effective manner. The advantage in this case is based on the increase of employee satisfaction from the year 2000 to the year 2001. The disadvantage is related to the issues that that have been faced by the management to align the objectives of the organization with the leadership style (The Ritz-Carlton., 2018).
  3. The ethical style of leadership is based on the respect of the ethical values and beliefs based on the rights and dignity of others. The ethical leadership can be applied in the organization by analysing the needs and desires of the diverse employees. The examples of a workplace scenario are, the ways by which the CEO of Amazon Jeff Bezos is able to address the issues of the customers and employees with the help of ethical leadership. The second example is of Sundar Pichai who is the CEO of Google who is able to manage the employees in an effective manner (Paliszkiewicz, Go?uchowski & Koohang, 2015).
  4. The three types of ethical behaviours that need to be possessed by leaders are mainly respect for others, abiding by the laws, leadership based qualities, commitment towards the excellence. These qualities need to be possessed by leaders so that they are able to manage the employees in an effective manner.
  5. The stakeholders of the organization can be managed with the help of a strategy named stakeholder mapping which involves the examination of key factors of the organization. The stakeholders can be managed with the help of the determination of the timeline based on regular communications with key stakeholders of the organizations (Amanchukwu, Stanley & Ololube, 2015).

Conclusion

The report can be concluded by stating that the change management based plans need to be implemented by the organizations with the help of proper coordination between the employees and the management. The analysis of Ritz Carlton Hotel has depicted that the employees and the foreign managers have been able to collaborate with each other due to the initiatives that have been taken by top managers.

References 

Amanchukwu, R.N., Stanley, G.J. & Ololube, N.P. (2015). A review of leadership theories, principles and styles and their relevance to educational management. Management, 5(1), pp.6-14.

Balon, R. (2014). Leadership versus management. Academic Psychiatry, 38(6), pp.720-722.

Bolden, R. (2016). Leadership, management and organisational development. In Gower handbook of leadership and management development (pp. 143-158). Routledge.

Cox, J.A. (2016). Leadership and Management Roles: Challenges and Success Strategies. AORN journal, 104(2), pp.154-160.

de Barros, F.B., Goedegebuure, L., Meek, V.L. & Pettigrew, A. (2015). Institutional governance, leadership and management of research for innovation and development. In The Palgrave International Handbook of Higher Education Policy and Governance (pp. 261-280). Palgrave Macmillan, London.

Donate, M.J. & de Pablo, J.D.S. (2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), pp.360-370.

Edwards, G., Schedlitzki, D., Turnbull, S. & Gill, R. (2015). Exploring power assumptions in the leadership and management debate. Leadership & Organization Development Journal, 36(3), pp.328-343.

Gold, J. & Thorpe, R. (2016). Leadership and management development: the current state. In Gower handbook of leadership and management development(pp. 29-48). Routledge.

Ljungholm, D.P. (2014). Transformational leadership behavior in public sector organizations. Contemporary Readings in Law and Social Justice, 6(1), p.76.

Lopez, R. (2014). The relationship between leadership and management: Instructional approaches and its connections to organizational growth. Journal of Business Studies Quarterly, 6(1), p.98.

Muchiri, M. & Kiambati, K. (2015). Relating leadership processes, societal culture and knowledge management: A theoretical model. Journal of Global Business Issues, 9(1), p.29.

Norris, S.E. (2017). What Motivates an Individual to Lead and Engage in Leadership Development?. In Encyclopedia of Strategic Leadership and Management (pp. 696-706). IGI Global.

Paliszkiewicz, J., Go?uchowski, J. & Koohang, A. (2015). Leadership, trust, and knowledge management in relation to organizational performance: Developing an instrument. The Online Journal of Applied Knowledge Management, 3(2), pp.19-35.

Renz, D.O. (2016). Conclusion: The Future of Nonprofit Leadership and Management. The Jossey?Bass Handbook of Nonprofit Leadership and Management, pp.734-746.

Riaz, M.N. & Khalili, M.T. (2014). Transformational, transactional leadership and rational decision making in services providing organizations: Moderating role of knowledge management processes. Pakistan Journal of Commerce & Social Sciences, 8(2), pp.355-364.

Solomon, I.G., Costea, C. & Nita, A.M. (2016). Leadership versus management in public organizations. Economics, Management and Financial Markets, 11(1), p.143.

The Ritz-Carlton. (2018). Luxury Hotels & Resorts | The Ritz-Carlton. [online] Available at: https://www.ritzcarlton.com/en/about [Accessed 18 Jul. 2018].

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