Ritz-Carlton Hotel Company: A Case Study in Responsible Leadership

Desklib provides past papers and solved assignments. This presentation analyzes The Ritz-Carlton's leadership and CSR strategies.

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 The Ritz-Carlton Hotel Company serves in the hospitality sector of over 30 countries
 The organization was founded in 1983 and current it has over 40,000 employees
 There are over 130 hotels across the world that belong to this particular firm
The Ritz Carlton Hotel Company is regarded as one of the most influential organisations in the
hospitality sector across the world as it has over 130 hotels in different locations across the world
and it serves a large population around the world. Over 40000 employees makes it one of the
primary hospitality organisations across the world that has a dedicated workforce for executing
any sort of activities.
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 The action of leading a particular group towards a particular objective
 Leadership aims to guide resources and efforts to a more productive direction
 Leadership also include problem solving activities that help groups
Leadership is regarded as one of the main aspects that drive any organisation towards its
organisational objectives in an effective manner. Leadership activities general help to direct the
organisation resources to a direction over they can be much more productive. Leadership also
makes sure that any barriers that come across the employer base while involved in executive
different organisation activities are solved immediately. Leadership activities generally make
sure that organisational interests are covered as well as employee interests so that stakeholder
demands are met effectively (Mathieu, 2016).
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 The democratic leadership style
 The autocratic leadership style
 Strategic Leadership Style
 Transformational Leadership
Democratic leadership aims to involve all levels of work force into decision making so that
employee interests are incorporated in policy making process. The policies will be the guidelines
for employees in terms of executing the activities and therefore employee participation will make
the process less complex. Autocratic leadership is based upon individual decision making and
individual interests in leading a particular group within an organization (Dhar, 2015). Strategic
leadership can be defined as a Process which takes into account a decision making technique that
ensures the organisation’s long term success and short term financial stability. Transformational
leadership aims to make sure that changes within the organisational structure are identified and
implemented effectively.
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 Cross Cultural Leadership
 Coaching Leadership
 Visionary Leadership
The Ritz-Carlton Hotel Company follows a cross cultural leadership as it is involved in different
International Markets and therefore it is obvious that the workforce will be very diverse and
population from local regions will be part of the employee base (Mehmetoglu, 2016). Therefore
a cross-cultural leadership will help to effectively manage the large and diverse workforce.
Hospitality industry is one of the booming sectors in in business markets across the world and

therefore if the employer base is coached effectively then they will acquire skills which can be
used in different situations.
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 Transactional Leadership
 Laissez-Faire Leadership
 Bureaucratic Leadership
In other organisations across the world hospitality leaders generally make sure that a
transactional leadership style is followed and employees are motivated in exchange of facilities
or monetary benefits. This helps other organisations in extracting the best out of employees. The
Laissez-Faire Leadership or delegative leadership style is used to make sure that employees are
given freedom to take decisions on their own. The bureaucratic leadership style is based on
particular official duties under the organisational hierarchy (Morgan, 2015). This leadership
styles are generally in front as far as other hospitality organisations are concerned and it is seen
that large hotels are effectively executing their operational activities by implementing these
leadership styles and controlling human resources.
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 The different sets of activities that organizational leaders execute in order to guarantee
organizational success.
 Organizational Responsibilities need to be executed on time
 Organizational Responsibilities follow organizational hierarchy
The different sets of activities which organisation leaders are bound to execute in order to
guarantee organisational success is regarded as organizational responsibilities. Organisation

responsibilities are very important in the context of an hospitality industry due to the fact that
serving the consumers effectively are one of the most important business objectives and if this
business objective is to be reached then leadership has to play large part. One of the most
important aspects of organisational responsibilities is to make sure that they are executed in a
timely manner as it is very important. It is normally seen that organizational responsibilities are
equally distributed among the personnel involved in the organizational hierarchy (Omar, 2018).
The higher level employees are the ones who have the most number of responsibilities in a usual
context.
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 Organizational Hierarchy
 Organizational Objectives
 Organizational Policies
Organisation responsibilities are based on organisational hierarchy as it clarifies the
responsibilities and the importance of executing the responsibility. Responsibilities of a set an
individual depends on his or her position in the organisational hierarchy and this can vary from
organisation to organisation. Organisational objectives also play an important role in making
sure that the activities that will be executed are aligned with the organisational goals (Chen,
2015). The most common objectives for you hospitality organisation such as Ritz Carlton is to
guarantee desirable amount of profit and serve consumers according to their demands.
Organisational policies of strategies also play an important role in making sure that the
operations are directed towards effective directions.
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 A leadership style that takes care of activities by making effective decisions
 Responsible leadership style takes care of stakeholder interests
 The corporate responsibilities are given ample importance in this style of leadership
In responsible leadership style takes care of the different activities by making effective decisions
that will guarantee the success of those activities. The leadership style in this case aims to who
used the resources provided by the organisation effectively and the time frame of executing the
activity is also kept in mind. In this type of leadership, stakeholder interests are given sample
importance so that all responsibilities of the firm in the internal and external environment are
effectively fulfilled (Zhang, 2016).
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 The Responsible Leadership Framework is based on three stages such as
 Input
 Process
 Output
Responsible leadership frameworks involves three different stages of input, process and output.
In the first stage the leadership aims to make sure that other organisation resources are
effectively invested and used as per the objectives of the firm. In the second stage of processing,
the aim is to make sure that the use of resources are effective and products or services are
generated effectively for the target market. The last age is to guarantee effective amount and
quality of products or services (Fernando, 2017).
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 Organizational Responsibilities helps to keep organizational activities on track

 Organizational Responsibilities guide the activities of responsible leaders
Organisational responsibilities helps to make sure that organisational activities are completed
within the desert schedule and desired objective are reached. Organisational objectives also
given ample importance if the organisation responsibilities are in place (Fuhrman, 2016). The
organisation responsibilities provide in guideline for the responsible leaders in in going by their
daily routine.
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 The corporate social responsibility is one of the most recent concept to maintain ethical
standards
 CSR is mainly based on triple bottom line approach that concern the environment ,
society and profit of the organization
 The corporate responsibility compels the firm to give at least 2% of their profits in Nobel
causing for the society
The Corporate social responsibility is the concepts that include the responsibility of the corporate
organization towards their society in an effective and efficient manner (Crowther, and Seifi,
2018). An integrated approach helps to balance between the environment and profit making and
contributing to the development of the society in a prominent manner
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 Sustainable development is one of the prime concern for the multinational organization
 The corporate social responsibility helps in enhancing the brand image of the
organization by 10 %

 The corporate social responsibility is essential creates a Nobel brand image for the
organization
One of the most valuable balances established in the corporate organization is by the
performance of the CSR in an efficient manner. The balance between the business process and
maintenance of ecological parameters like optimize resource use and giving funds to any
environmental project may enhance the brand image of Ritz Calton hotel. The sustainable
consumer base may also increase by 10% in an efficient manner (Unit, 2015).
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 Eco friendly technologies should be implemented by every organization to reduce their
carbon footprint in a prominent manner.
 Ritz Calton hotel has shown environmental concern and formulation of strategies are
made to reduce wastage
 Green energies are used to by the organization to reduce the ecological foot print
The environmental degradation is the major concern of the globe. Every organization should
perform their responsibility and formulate strategies that mitigate waste in a prominent manner.
Use of green energies like solar energy may help in reduction of carbon footprint (Wang et al.,
2016). It may help to enhance the environmental performance that may enhance the brand image
of the organization
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 The CSR helps in enhancing brand image by contributing to development of society

 However it is seen that profit of the organization reduces by 5 % sometimes due to CSR
activities
 It is observed that CSR activities sometimes causes conflicts with the shareholders of
the organization
In the words of (Crane, Matten, and Spence, 2019) the CSR though improves the global brand
image of the organization sometimes reduce the holistic cost of the organization by almost 5%.
Additionally it is said that the sometimes shareholders opines not to invest in CSR that turns into
a conflict of opinion with the management of the Ritz Calton. However, it is seen that CSR
increases brand image by 10 %.
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 Facebook
 Instagram
 Twitter
Different social media platforms like Facebook, Instagram and Twitter are very important in the
context of Ritz-Carlton as these platforms will help to make sure that the organisation effectively
reaches out to its target market. Facebook provides opportunity to post different shots of content
that can be used to gather the attention of consumer base. Instagram on the other hand have the
same facilities but the other facility of posting stories make it a useful platform. Twitter on the
other hand will help the organisation to be aware of day to day news and information from
around the world (Caputi, 2017). These platforms will also help the organisation to keep track of
the market Trends as far as the hospitality industry is concerned.
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 It helps to reach a large target market
 Promotional activities can be done through Social Media
 Social Media helps in gathering consumer feedback
Social media helps organisations to reach a large population and therefore guaranteeing effective
response as far as consumer base is concerned. Social media pages can also be used to promote
the different facilities at the organisations are providing and global outreach in this case helps to
fulfil the organisational objectives (Bowen, 2018). Consumer feedback can also be gathered
effectively through social media pages and services of products can be decided according to the
feedbacks.
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 Negative Consumer Feedback can be harmful
 Competitors can easily analyze strengths and weaknesses
 Social Media pages can be hacked
Competitiveness can be aware of the strengths and weaknesses of the internal environment.
There are security issues related to maintaining social media accounts (Ruzzier, 2016).
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 Employing skilled social media page handlers
 Editorial team for social media contents
Skilled social media handlers was frame price and editorial teams must also be in place for
posting social media contents (Terglav, 2016).
Slide 21

 Emerging trends in the hospitality includes inclusion of technologies like CRM database
management
 Better communication and automated self service
 Giving service to the millennial are included in the trends
The technological up gradation is the current trend of the hospitality industry. Moreover, self-
automated services and better communication is necessary trends of hospitality industry.

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