Analyzing the Case Study of Ritz Carlton Hotel: Leading and Managing Organizational Change

Business Diploma
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Executive Summary
According to the case study, in September of the year 2001, the Ritz-Carlton Hotel in the
city of Shanghai in China got the top awards in the survey of Asia’s Best Employers. The case
study examines the actions taken by the general manager of the hotel to create a satisfied and
active employee at the Ritz-Carlton Hotel. The case study could be utilized to discuss the effect
of satisfaction of the staffs on the satisfaction of the customer. The issue of retaining well-
qualified, service-oriented and English-speaking staffs in the labour market of Shanghai has also
been analyzed in the case study. This report will evaluate the case study of Ritz-Carlton Hotel.
It will examine the concepts of leadership and management during the organizational change of
the hotel. It will also evaluate the organizational systems of the hotel and business resources at
the time of organizational change. The leadership styles and ethical perspective in the hotel will
also be examined.

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Table of Contents
Introduction.................................................................................................................................................3
Task 1 – Concept of Leading and Managing Change..................................................................................3
1. Corporate Culture of the Ritz Carlton Hotel Company........................................................................3
2. Advantage of Appointing Foreign Managers.......................................................................................4
Disadvantage of Appointing Foreign Managers......................................................................................4
3. De Cocinis’ approach to the attitude problem of young Chinese Workers..........................................4
4. Three Leadership Characteristics of De Cocinis’ in Managing Change at Ritz Carlton.......................4
Task 2 – Organizational Systems and Resources to Business Transformation............................................5
2.1 Three Areas of Differences or Similarities in Business Leadership...................................................5
(i) Strengths and Weaknesses in each of the three areas –...................................................................5
(ii) Advantages and Disadvantages......................................................................................................5
2.2 Influence of Leadership in Change Management.........................................................................6
 Gender, Diversity and Culture.....................................................................................................6
 Perceptions from Leadership and Staffs.......................................................................................6
2.3 Corporate Culture..............................................................................................................................6
Work Motivation.................................................................................................................................6
Satisfaction..........................................................................................................................................7
Company Loyalty................................................................................................................................7
Multi-ethnicity.....................................................................................................................................7
2.4 Presentation.......................................................................................................................................7
Task 3 – Leadership Styles and Ethical Perceptive......................................................................................7
3.1 Three Leadership Styles facilitating Organizational Change.............................................................7
3.2 Leadership adapted by Management..................................................................................................8
One Advantage....................................................................................................................................8
One Disadvantage................................................................................................................................8
3.3 Ethical Leadership.............................................................................................................................8
Two examples of Workplace Scenarios...............................................................................................9
Three Ethical Behaviors to Implement................................................................................................9
Two Strategies to Manage the Relationships with Internal and External Stakeholders........................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

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Introduction
The report will analyze concepts of leading and managing organizational change. It will
also evaluate the organizational systems and business resources during organizational change.
The leadership styles and ethical perspective will be examined. The report is based on the case
study of Ritz Carlton Hotel of Shanghai. The Ritz Carlton Hotel of Shanghai is situated in
Nanjing Road beside the Huangpu River and The Bund. The hotel offers luxurious
accommodations in important retail areas of China along with an indoor swimming pool and a
spa. The hotel has a convenient business center, 24-hour facility of room service and a 24-hour
service of front desk.
Task 1 – Concept of Leading and Managing Change
1. Corporate Culture of the Ritz Carlton Hotel Company
 Core values – They show their values of responsible business through
policies on human rights, employment, supply chain, environment and in the conduct
they support and expect of others. They believe that their success as a global hospitality
company is grounded in their values demonstrated each day through their world-class
service and culture.
 Beliefs – They believe that to take care of a customer, one should first take
care of those who take care of the customers. Employee's satisfaction delivers high
service value to the customers to satisfy them. And satisfied customers, in turn, create
profits and sales for the organization.
 Ethical Standards – Its code of business ethics provides staffs and
managers with full guidance on the right way to conduct business on laws relating to
unfair competition, political and commercial bribery, and abuse of purchasing power,
political contribution and more (Piehler, Hanisch & Burmann, 2015). Their business
ethics program reinforces the importance of the ethical responsibilities of the company.
 People Management Approach – The senior management of the
company undertook management of quality. They know that as a service company, the
quality of its end product was only as good as the people providing it. So, it only recruits