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Company Overview:
The Ritz-Carlton Hotel Company, L.L.C. is the parent company to the luxury hotel chain, Ritz-
Carlton Hotels. The hotel company is a subsidiary of Marriott International. The company also
has marketing agreements with Bulgari Hotels &Resorts, and two privately owned hotels, The
Ritz Hotel, London, and the Hotel Ritz Madrid. The company grew to become the hospitality
leader in the US under the leadership of President and COO Horst Schulze. Schulze's strong
conviction of customer loyalty and emphasis on a value/mission driven philosophy for the
"Ladies and Gentlemen serving Ladies and Gentlemen" became a benchmark in the industry to
which other companies aspired. Under his leadership the hotels earned an unprecedented two
Malcolm Baldrige National Quality Awards and grew from four to forty U.S. locations. The
Ritz-Carlton also known for its influence on service in a wide range of industries, through the
creation of the following organizations:
The Ritz-Carlton Learning Institute
The Ritz-Carlton Leadership Center
These organizations created for the purpose of where executives from other companiesworldwide in
many disciplines come to learn Ritz-Carlton principles of service. The Ritz-Carlton Hotel Company is
now headquartered in Chevy Chase, Maryland, located in theWashington, D.C. MSA.
Slogan of Ritz-Carlton Hotel Company
You can't be a legend without a great story.
100 years of history, countless rewards and with an unshakeable credo and corporate philosop
hy of un-wavering commitment to service, both in hotels and in communities, TheRitz-Carlton
has been recognized with numerous awards for being the gold standard of hospitality.
Case Summary
When The Ritz-Carlton Hotel Company, L.L.C. was preparing to open, then recruiting to fill in
major positions became a major challenge for the HR Director, Marie Minarich. The
HR Director used the both conventional and creative approaches to fill the major vacancies in
the hotel. The several recruiting techniques such as signs were put on the building about the
information of recruiting and applying system, newspaper advertisement. The managers and
staffs of Ritz-Carlton Hotel hand out business cards and service praise cards to the employees
of other restaurants and hotel before few weeks of job fair. These are the creative methods that
were followed by HR Director of Ritz-Carlton Hotel. The job fair was the major source forrecruiting 2300 applicants in two days. During the job fair, one of the exceptional creative
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method applied, which was to keep with upscale theme of Ritz-Carlton Hotel played by the
musicians. This theme introduced the applicants with the culture of the company andattracted
them. The applicants completed the application blanks and faced the preliminary screening
interview. After the screening interviewing process those who passed, then they were
scheduled for more in depth 1.5 hours interviews consisting of 55 questions. More than150 in-
depth interviews were conducted at the job fair. The HR Director and HR staff filled
the positions with appropriate people by applying such kind of successful creative andconventi
onal recruitment approaches within short time period.
Question No 1. Describe why a strategic approach to recruiting was crucial at the Ritz-
Carlton?
Recruitment refers to the process of attracting, screening, and selecting qualified people for a
job. And strategic Recruitment means identifying the real recruitment needs of an organization
and fulfilling those needs. The organizational needs are tied to the overall strategic business
plan. The needs are in terms of number, quality, and specialized skills and talents in every area
of the organization's activities. The use of strategy in recruitment is
intended to attain the objective "Matching People with Jobs." With the absence of this
approach, an organization may have to change its plan and may end up "Matching Jobs to
People." This goes against the direction of a business plan. Strategic recruiting may sometimes
need to go beyond just filling empty positions. It can focus on discovering talent before it is
needed, capitalizing on windfall opportunities when there is an abundance of highly qualified
people" This is proactive action to ensure that nothing is left to chance. There is correlation
between the HRM strategy and the overall corporate strategy. As HRM as a field seeks to
manage human resources in order to achieve properly organizational goals, an organization's
HRM strategy seeks to accomplish such management by applying a firm's personnel needs with
the goals/objectives of the organization. Specific HRM functions, such as recruitment and
selection, reward/recognition, an HR plan, or learning and development policies, would be
tailored to achieve the corporate objectives. Strategic Human Resource Management helps you
achieve success. Strategic human resource management aligns your human resource function to
your core business objectives. StrategicHR management involves more than just the
administration of human resource programs or activities. Close co-operation (at least in theory)
between HR and the top/senior management, in the development of the corporate strategy.
Theoretically, a senior HR representative should be present when an organization's corporate
objectives are devised. This is so, since it is a firm's personnel who actually construct a good,
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or provide a service. The personnel's proper management is vital in the firm being successful,
or even existing as a going concern. Thus, we can say that a strategic approach to recruiting
was crucial at the Ritz-Carlton. The importance of strategic recruitment becomes obvious when
an organization plans for immediate and future expansion. Under a strategic recruitment
approach, firm needs to link the business strategy to recruitment strategy. Business strategy
can change and must change in response to changes in the business and economic environment.
Recruitment strategy must also change accordingly.
There are several tools that have been used by companies with the aim of recruiting
their employees. Some of them are more traditional or considered to be generally effective,
whileothers may prove appropriate for specific situations only. In order to choose whichrecruit
ment method the employer is going to use, the employer needs to consider many aspects, for
example, the cost of reaching the candidates, the time scales involved, and the culture of the
organization. And the firm will form a recruitment strategy that links with the business
strategy.
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Measurement of Recruitment Effectiveness:
The quality of people that you can recruit will determine the future of your organization. You
need to have the right mix of experience, skills and talents in order to grow stronger in every
way. The strategic recruitment approach requires your organization to measure the
effectiveness of your recruitment policy and activities. This is important because a lot of money
is involved in recruitment.
Considerations in Evaluating Recruitment include:
Cost per hire which includes all the costs involved from the time the
recruitment process commences until the selected candidate reports for duty.
Speed of Hire also referred to as Time to hire referring to the time the position fell
vacant to the time a replacement is found.
Quantity of applicants. Because the goal of a good recruiting program is to generate a
large pool of applicants from which to choose, quantity is as natural place to begin
evaluation.
Quality of applicants & hire. Some consider this as the most important measure. This
means that the requesting department or unit now have the right people in order to be moreproductive.
Question No 2. Why were the conventional recruiting approaches less important than the
creative methods in generating a large number of applicants at one time?
Recruitment refers to the process of attracting, screening, and selecting qualified people for
a job. The stages in recruitment include sourcing candidates by advertising or other methods,
screening potential candidates using tests and/or interviews, selecting candidates based on the
results of the tests and/or interviews, and on-boarding to ensure the candidate is able to fulfil
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their new role effectively. Recruiting is a sales and marketing process. In the marketing of the
company's detailing services the marketing manager choose marketing strategies that will
attract the customers who can most use and therefore want to buy services. Why waste money
on customers who don't want to buy? The same is true for recruiting. Recruiting is simply
marketing your company's employment to potential employees. If the company uses recruiting
methods that attract the employees whom the company wants, those who can "most use" and
therefore want to "buy" you as an employer, then the company should attract only them and
spend a lot less time and money. So, how does the company choose the recruiting methods that
will be most successful, save time, save money plus bring you the desired candidates? It
depends on how the HR recruiting plan is made. Like for the new Ritz-Carlton hotel in
Washington, D.C, the HR Director used a perfect blend of both conventional and creative
recruiting approaches. As the hotel was being built, signs were put on the building indicating
the opening date and how to apply for jobs. As the opening got closer, some newspaper
ads were placed, but no internet or radio ads were used. Additionally, Ritz-Carlton managers
and staff made it a point to hand out business cards and service praise cards to employees at
other restaurants and hotels in the months and weeks before the peak hiring was to occur.
Those individuals were encouraged to apply at Ritz-Carlton and many of those receiving the
cards showed up at a two-day job fair held by Ritz-Carlton. The job fair was the major source
for recruits, generating 2300 applicants in two days.
Togenerate more applicants at the jobs fair, Ritz-Carlton recruiters handed out job fair
invitations at subway stations the job fair. During the job fair, refreshments were served by
employees of other Ritz-Carlton hotels in the area. To keep with the upscale theme of Ritz-
Carlton, musicians played at the fair. Although for the new Ritz-Carlton hotel in Washington,
D.C. a perfect blend of both conventional and creative recruiting approaches were used but
it was the creative recruiting methods that helped Mina rich and the HR staff fill the needed
positions for the opening for the hotel. Now to understand why the conventional recruiting
approaches were less important than the creative methods in generating a large number
of applicants at one time for Ritz-Carlton we must first learn about the methods and understand
pros & cons of the methods. Conventional Recruitment Methods-
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1. Written job application in response to an advertised position - directly to the
company.
This is the most common method of recruitment. Many people still seem to think that a written
application means a hand written application. If a company does want a hand written letter they
will say so.
2. Written job applications to recruitment / employment agencies
Treat this same as a letter to an employer; however, refer to the employer as Your client as
they are a second party in this process.
3. Registering with a Job Recruitment / Employment Agencies
Job Recruitment / Employment Agencies are effective recruitment tool. Agencies advertise
a position on behalf of the employer and conduct the interview to short list stage. This could be
a pool or the best 3-4 applicants. This job search strategy requires less work and allows you to
access to job opportunities you might not have found on your own. The disadvantage of this
recruitment method is that the agency is working for the employer, and will need to satisfy all
their criteria. Nevertheless, Recruitment Consultants who have developed a good rapport with a
client may ask an employer to look at a "wildcard' - a person who may not meet all the criteria,
but has potential.
4. Registering with a Job Search Firm
These are more exclusive employment agencies at the top end of the market mainly executive
recruitment. As part of their hiring strategy Recruitment Consultants "head hunt" applicants
from other firms on behalf of their clients. They often do career transition programs for
retrenched workers on behalf of companies.
5. Employee referral
This method of recruitment occurs more often than you may think and can be a traditional
method of employment for many companies. The advantage is that an employee would not
recommend someone they know that is not up to the job as it reflects back on them. It was first
tried as a traditional recruitment method by American Express over 30 years ago.
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6. Accepting applications from job seekers cold calling
In the past smaller employers were impressed by the applicant who cold called, by visiting the
company and leaving their resume. Research confirms a view that has been held for a long
time, those job seekers who cold call are considered to be highly motivated with a lot
of initiative and confidence and really wanted to work. The extensive use of the internet
for looking for work.
7. Phone application in response to an advertised position
Generally this recruitment method used by smaller companies. If you are asked to phone you
must do so immediately. You will probably be screened by the receptionist who may take job
and personal details. They will tell you that the employer will ring you back. This is a hit and
miss method of recruitment and used by many smaller companies and very frustrating for
jobseekers.
8. Industry/Corporate Websites
A good example is mining companies and larger organisations. Most have vacancies advertised
on their site.
9. Group recruitment - information sessions
If a company is doing group recruitment they may ask you to attend an information session
if you pass the telephone interview. They may do recruitment testing or simply get you to play
silly games meant as a recruitment assessment technique. Psychology tests are available
for use; the main one is to find out if candidates are team players.
10. Temporary Staff Recruitment / Employment Agencies
This should be a popular recruitment method yet many job seekers feel it is too insecure. These
agencies can make arrangements to transfer an employee to the company full time if required
(at a fee to employer). Often companies use agencies to 'trial employees' as they do not have to
deal with Industrial relations issues. Points to consider:-
Many people have been placed in good permanent jobs after proving themselves.
Usually this arrangement is considered a 'perfect match' for both the employer and
employee.
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Temporary agencies are very selective in their recruitment. Job seekers may need to
establish themselves and build credibility with an agency to be selected for some of the
better positions.
11. Telephone or screening interviews
A screening interview may be conducted legitimately by a government agency or a new
company who are bulk recruiting. An employer, (and also an employment agency/recruitment
firm), may ring the jobseeker to talk or "chat" about their application. This is really telephone
interviewing. Consider this as an important screening interview. From this contact you will
either be put on a shortlist for a face-to-face interview, or your application will be discarded.
Non-Traditional/Creative Recruitment Methods Here are a few alternatives to the usual
sourcing methods. Famous article & column writer Kevin Wheeler in this article-
Non-Traditional Recruiting Methods, Revised: Some Ideas and Examples
classified advertising, employee referral, and Internet searching and job boards inthe
traditional category. According to him some of the non-traditional things may requireyou to
stretch your corporate policy a bit may even require you to ask for forgivenessinstead of
permission but may land you that great candidate you need.
1. Event Recruiting.
Cisco pioneered this approach and it has brought them success. It is very simple: go to the
events that the people you are seeking go to. In the case of programmers in Silicon Valley, the
choice spots have been microbreweries, marathons, and bike races. When you go to these
events, become involved in some way that promotes your name and cause. Sponsor or co-
sponsor the event. Pass out refreshments. Give away a prize. Give a gift to everyone who
participates. Just be sure that they KNOW you are recruiting and have a good idea of what you
are looking for. This is where you build a brand and create animage of the kind of company
you are.
2. Re-Recruiting. Again,
a simple concept: find those reasonably good people who left your company for a new
challenge, more pay, or whatever, and try to recruit them back. HR Magazine just had an article
with a graphic depicting an office with a velvet rope across the door carrying a sign that said
RESERVED. This was to indicate how many firms are telling employees who leave that they
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are always welcome back. Employees who leave and come back are good contributors and stay
longer than many of those hired for the first time. They produce quickly, are familiar with the
environment, require less assimilation time and effort, and may already have an internal
network of associates in place.
3. Make Every Employee A Recruiter.
Many firms are enlisting the average employee to be a recruiter. This is not the same as asking
employees to refer friends to the company and this is not paid for. Rather, equip employees
with simple business cards that do not have any ones name on them. These cards just say
something like: We are always looking for great XXXXX. To find out more, log onto our
website at www.xxx.xxx These cards are given out at parties, sports events, family gatherings,
picnics, the park, or wherever an employee goes. They are used to let people know that your
company really does want people to apply. Employees can use the cards as a way to talk about
what they do and about how wonderful your company is to work for.
4. Cast A Wider Net.
Expand your recruiting to include some people who do not have all the skills you would like,
but who have potential to contribute if they are trained. Again, Cisco has an excellent trial
program underway called the IT Apprenticeship Program. This program
offers undergraduates with degrees in music or math an opportunity to learn HTML programmi
ng. They are hired as programmers, are given intensive training at the same time they are
handling basic customer service issues, and then are assigned a programming job. So far this
program has had superb results and success. If there was ever a time to look at a wider set of
skills and devote more effort to development, then this is that time. Recruiters need to be
strategic enough to suggest these programs to management and to push the traditional ideas of
what makes good recruiting. Of course we would all like to hire the cream, but reality says we
can only get a share of it. We will have to make some cream of our own and these kinds of
programs can work well. Hope that some of these will work for you!
Ritz-Carlton followed strategic approach to recruit and strategic recruitment means identifying
the real recruitment needs of an organization and fulfilling those needs. The needs were in
terms of number, quality, and specialized skills in every area of the organization's activities.
The HR director Marie Mia rich identified the real recruitment needs and a major challenge
that is recruiting to fill all ofthe positions. Additionally, Ritz-Carlton regarded employees as
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the cornerstone of its exceptional service culture. The company understood that, as a service
organization, the quality ofits end product was only as good as the people providing it.
Therefore it took care to see that it recruited the right kind of employees. According to Ritz-
Carlton, the company did not 'hire' its employees; it 'selected' them. The conventional recruiting
methods became less important than the creative methods as the organization planned for
expansion i.e. to open a new Ritz-Carlton hotel in Washington D.C. And we know that under a
strategic recruitment approach, firm needs to link the business strategy to recruitment strategy.
So using creative recruiting methods to attain business goal at the time became crucial for Ritz-
Carlton. And we know that in tight labor markets with significant shortages of qualified
applicants, employers turn to more creative recruiting methods. Regardless of the methods
used, the goal is to generate a pool ofqualified applicants so that the positions in organization
are filled in a timely manner.
Recommendation and Conclusion:
From our case analysis, we can say that though Ritz Carlton Hotel followed manyrecruitment
approaches, they might follow the other recruiting approaches such as
Holding raffles & attractive price giving ceremony for employees who brought in skilled
candidates
Advertising for the positions at important locations in the city.
University fresher and graduate might be encouraged to apply for front desk, guest services,
maintenance etc. positions. So campus recruiting could be a good solution
Retired Govt. security forces might be encouraged for security position. After that the HR
Authority of Ritz Carlton Hotel might evaluate quality of recruitment to increase the
recruiting effectiveness. Ritz-Carlton Hotel followed the both conventional and creative
approaches for their successful recruiting process. The HR director took most effective
recruitment approach to recruit a good number of right people to the right place in a short
period. The recruitment was the main challenge for the HR director by which the
organization would gain core competencies over its competitors. Employees knowledge,
skill and ability (KSA) are the main factors for gaining competitive advantage of
an organization. For this reason the recruitment process was divided into many steps of
screening and short, in-depth interviewing. All these types of creative approaches helped
the organization successfully find out the right one.
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References:
Kevin Wheeler | Nov 29, 2000 | Non-Traditional Recruiting Methods, Revised:
SomeIdeas and Examples | http://www.ere.net/2000/11/29/non-traditional-recruiting-
methods-revised-some-ideas-and-examples/ Raymond A. Noe, John R. Holenbeck, Human Resource Management,4th
Edition,Page no: 40-44
Ritz Carlton Wikipedia: The free encyclopedia. http://en.wikipedia.org/wiki/Ritz-
Carlton
http://www.strategic-human-resource.com/strategic-recruitment.html
http://en.wikipedia.org/wiki/Recruitment
http://www.strategic-human-resource.com/
http://www.strategic-human-resource.com/strategic-recruitment.html
http://en.wikipedia.org/wiki/Recruitment
http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and
%20Organization%20Behavior/HROB100.htm
http://www.proactivehrm.com/JobSearch/Recruitment_Methods.html
http://en.wikipedia.org/wiki/Human_resource_management
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