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College of Administrative and Financial Sciences
Assignment 3
Deadline: 17/04/2021 @ 23:59
Course Name: Organization Design &
Student’s Name:
Course Code: MGT404
Student’s ID Number:
Semester: II
Academic Year: 1441/1442 H
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented; marks may be
reduced for poor presentation. This includes filling your information on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Department of Business Administration
Organization Design and Development- MGT 404
Assignment 3
Marks: 5
Course Learning Outcomes:
• Analyze the human, structural and strategic dimensions of the organizational
development (2.4)
Assignment Instructions:
• Be sure to cite at least two scholarly, peer-reviewed references in support of two of
your answers and also incorporate the key concepts from the course.
Assignment Question(s):
Please read the case study “TQM at the Ritz-Carlton” in Chapter 13, p.391 available in your
textbook “Organization Development & Change” (10th ed.) by Cummings, T and Worley, C
and answer the following questions:
• Q.1 Based on your understanding of the case, discuss and evaluate employee
involvement as practiced by the Ritz-Carlton in terms of the following key elements:
-Power (0.5 mark)
-Information (0.5 mark)
-Knowledge and skills (0.5 mark)
-Rewards (0.5 mark)
• Q.2 Do you think the Ritz-Carlton’s experience with TQM could be provided as a
benchmark to other organizations? Explain your answer in light of the stages for TQM
application. (1.5 marks)
• Q.3 Discuss which features are evident in the practices of the Ritz-Carlton that would
enable the Hotel Company to meet the criteria of high involvement organizations. (1.5
application 13 2
he Ritz-Carlton Hotel Company, the premier
flagship of Marriott International, operates
81 luxury hotels in 27 countries. Employing
about 38,000 staff, the firm has a venerable
record of excellent service that is considered
the benchmark by many in the hospitality
industry. Ritz-Carlton has been involved in
TQM for over 30 years and was the first hotel
chain to win the coveted Malcolm Baldrige
National Quality Award in 1992. Needless to
say, Ritz-Carlton is passionate about quality
guest care, from the president and chief operating officer, Herve Humler, to the maintenance, front desk, and housekeeping staff.
Ritz-Carlton’s unique approach to TQM is
embedded in its strong corporate culture,
which is spelled out clearly in its “Gold
Standards.” These standards are the backbone
of the company and include the values and philosophy that guide how it operates, including
processes for solving problems and criteria for
grooming, housekeeping, safety, and efficiency.
The Gold Standards include Ritz-Carlton’s credo,
motto, three steps to service, service values,
and other proprietary statements. All employees know the Gold Standards by heart and are
well-trained in what they mean for daily work
behavior. For example, Ritz-Carlton’s motto,
“We are Ladies and Gentlemen serving Ladies
and Gentlemen,” is closely tied to how guests
are welcomed, with “a warm and sincere greeting,” and depart with a “fond farewell.”
Ritz-Carlton’s TQM program begins at the
top with senior executives who spend about a
quarter of their time on quality issues. Because
the company’s service culture is built on trust,
these leaders hold themselves accountable for behaving according to the values that they require of
the organization. The senior executives comprise
the corporate steering committee for TQM as well
as the senior quality-management team. Each
week the steering committee reviews various
measures of service quality and performance. It
engages in detailed planning by setting objectives,
devising action plans, and assessing results.
This planning process is essential to RitzCarlton’s TQM program. It extends to each
level of the firm where teams in the individual
work areas set objectives and create action
plans that are reviewed by the corporate steering committee. This cross-level planning process helps to assure that quality goals and
action plans are consistent across organizational levels and integrated with the firm’s
overall plan. In addition, each hotel has a
designated quality leader, who serves as a
resource and advocate as teams develop and
implement their quality plans.
Teams play a key role in providing quality
service. Each work area in a hotel includes
teams responsible for problem solving, strategic
planning, and setting quality-certification standards for each position. Employees meet as
teams to spot problem patterns, prioritize
problems, and develop measures to prevent
their recurrence. These cross-functional teams
require sufficient time and resources to learn
how to function effectively. Managers are still
responsible for objectives and solutions but
rely on input and involvement from team members. A unique team tradition at Ritz-Carlton is
the “lineup,” drawn from early French restaurants where the chef got his whole team, including the waiters and waitresses, together at the
same time each evening to communicate what
they are going to be serving. At the Ritz-Carlton,
teams on every shift use the lineup for about
15 minutes every day. This includes sharing
up-to-the-minute information as well as talking
about great things employees have done to
deliver exceptional service.
An integral part of Ritz-Carlton’s TQM
program is empowering employees to solve
guests’ problems as quickly as possible.
Employees are responsible for acting at first
notice, regardless of the type of problem or
guest complaint. They are expected to stop
their normal routine and to take immediate
positive action to discover what went wrong
and resolve it. They are empowered to handle
any customer complaint on the spot and can
demand the immediate assistance of other
employees and spend up to $2,000 if necessary. Employees can apply this rapid response
not just to solve problems but to do something that
creates an absolutely wonderful stay for a guest,
such as surprising guests with champagne and
cake in their room on their birthdays. Ritz-Carlton
also works hard to avoid guest problems before
they occur. Employees who detect a potential
problem in service delivery are immediately
expected to bring it to management’s attention
and a solution is found. Eliminating internal
employee complaints can avoid external complaints that might come from guests.
A key to Ritz-Carlton’s TQM success is the continuous collection and analysis of data on service quality and its comparison to predetermined customer
expectations. Assisted by the latest information technology, the company gathers information on such
quality measures as percentage of check-ins with no
queuing, time spent to achieve industry-best cleanroom appearance, time to service an occupied guest
room, and guest room preventive-maintenance
cycles. Data submitted from each of a hotel’s 720
work areas provide daily quality production reports,
which enable rapid identification of problems in
achieving quality and customer-satisfaction goals.
Ritz-Carlton’s human resource practices are tied
closely to TQM. Selection, training, and performance
appraisal are geared to talent acquisition, development, and retention. Only about 2% of the people
who apply for jobs are hired. A key criterion is how
well the applicant is likely to fit the company’s culture
including being a team member. Once on board,
new employees are versed on the corporate culture
through a two-day orientation, followed by extensive
on-the-job training, then job certification. To obtain
certification, employees are assessed on their mastery of skills associated with their particular job. They
also are tested on how well they know the company’s TQM philosophy and credo, which can qualify
them as “quality engineers.” Ritz-Carlton expects
100% compliance with skills testing, so that everyone is certified to do a particular job and is a quality
engineer as well. The company’s performance
appraisal system is based on the Gold Standards
and employees are held responsible only for those
things under their control.
Ritz-Carlton also has extended TQM to its suppliers. To assure that suppliers can meet the firm’s
quantity and quality needs, it has developed a supplier certification process, which measures how
often suppliers meet specifications on time and
how well they improve their cycle time from
order to delivery. The certification process also
includes an internal audit of suppliers’ capabilities
and a quality survey of those who use their
products and services, including purchasing
agents, accounting personnel, sales persons, and
hotel guests. Ritz-Carlton ranks suppliers based
these data with the objective of getting them certified to become a fully integrated partner.
The fundamental aim of Ritz-Carlton’s TQM process is not simply to meet the expectations of
guests but to provide them with a visit that is unique,
memorable, and personal. According to independent
surveys, 92% to 97% of the guests leave with that
impression. Ritz-Carlton’s experience and success
with TQM has spread worldwide to organizations in
a variety of industries and regions. Started in 2000,
its Leadership Center provides knowledge, information and benchmarking to organizations interested in
learning many of the business practices that led to
Ritz-Carlton becoming a two-time recipient of the
Malcolm Baldrige National Quality Award.
13-2c High-Involvement Organizations
Over the past two decades, an increasing number of employee involvement projects have
been aimed at using high-involvement work practices to create high-involvement organizations (HIOs). These interventions create organizational conditions that support high
levels of employee participation. What makes HIOs unique is the comprehensive nature
of their design process. Unlike parallel structures that do not alter the formal organization or TQM interventions that tend to focus on particular processes, HIOs address

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