Examining the Effects of Organizational Culture on Guest Satisfaction in the Hotel Industry. The Ritz-Carlton Hotel Company Case
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STATEMENT ABOUT AN INDEPENDENT CHARACTER OF THE BACHELOR THESIS ... 2
INTRODUCTION 5
1. THEORETICAL FOUNDATION 8
1.1 The concept of Organizational Culture 8
1.1.1 History and the State of the Art 8
1.1.2 Definition and formation of Organizational Culture 10
1.1.3 Typologies in Organizational Culture 13
1.1.4 The Schein Model 15
1.1.5 The Denison Model 17
1.1.6 The Role of Organizational Culture in Improving Customer Satisfaction 20
1.1.7 Engagement, Culture, and Satisfaction: The Interconnected Triad 21
1.2 The Landscape of the Hotel Industry 23
1.2.1 Brief overview of the Hotel Industry 23
1.2.2 Customer-Centricity as a key to Hotel Success 24
Conclusion 26
2. RESEARCH METHODOLY 28
2.1 The Description of the Ritz-Carlton Hotel Company 28
2.2 The Description of the research methods 31
2.2.1 Determining the type of culture using the Schein Model 31
2.2.2 Sample and procedure of the in-depth interview with employees 32
2.2.3 Determining the type of culture using the Denison Model 33
2.2.4 Sample and procedure of the survey of employees 33
2.2.5 Analysis of guest reviews 35
Conclusion 36
3. DISCUSSION OF RESULTS AND MANAGERIAL IMPLICATION 37
3.1 The results of Schein’s Model analysis 37
3.1.1 Artifacts 37
3.1.2 Espoused Values 40
3.1.3 Underlying Assumptions 43
3.1.4 Conclusion based on Edgar Schein's Model analysis 44
3.2 The results of Denison’s Model analysis 45
3.2.1 Misson 45
3.2.2 Consistency 47
3.2.3 Involvement 49
3.2.4 Adaptability 50
3.2.5 Conclusion based on Denison’s Model analysis 52
3.3 The results of Guest’s review analysis 53
3.3.1 Interpretation of results 53
3.4 Results Discussion and Implications 56
3.4.1 Conclusion of the results 56
3.4.2 Theoretical contribution of this research 57
3.4.3 Managerial implication of the results 58
3.4.4 Limitations and future research directions 60
CONCLUSION 61
LIST OF REFERENCES 62
APPENDICES 68
INTRODUCTION 5
1. THEORETICAL FOUNDATION 8
1.1 The concept of Organizational Culture 8
1.1.1 History and the State of the Art 8
1.1.2 Definition and formation of Organizational Culture 10
1.1.3 Typologies in Organizational Culture 13
1.1.4 The Schein Model 15
1.1.5 The Denison Model 17
1.1.6 The Role of Organizational Culture in Improving Customer Satisfaction 20
1.1.7 Engagement, Culture, and Satisfaction: The Interconnected Triad 21
1.2 The Landscape of the Hotel Industry 23
1.2.1 Brief overview of the Hotel Industry 23
1.2.2 Customer-Centricity as a key to Hotel Success 24
Conclusion 26
2. RESEARCH METHODOLY 28
2.1 The Description of the Ritz-Carlton Hotel Company 28
2.2 The Description of the research methods 31
2.2.1 Determining the type of culture using the Schein Model 31
2.2.2 Sample and procedure of the in-depth interview with employees 32
2.2.3 Determining the type of culture using the Denison Model 33
2.2.4 Sample and procedure of the survey of employees 33
2.2.5 Analysis of guest reviews 35
Conclusion 36
3. DISCUSSION OF RESULTS AND MANAGERIAL IMPLICATION 37
3.1 The results of Schein’s Model analysis 37
3.1.1 Artifacts 37
3.1.2 Espoused Values 40
3.1.3 Underlying Assumptions 43
3.1.4 Conclusion based on Edgar Schein's Model analysis 44
3.2 The results of Denison’s Model analysis 45
3.2.1 Misson 45
3.2.2 Consistency 47
3.2.3 Involvement 49
3.2.4 Adaptability 50
3.2.5 Conclusion based on Denison’s Model analysis 52
3.3 The results of Guest’s review analysis 53
3.3.1 Interpretation of results 53
3.4 Results Discussion and Implications 56
3.4.1 Conclusion of the results 56
3.4.2 Theoretical contribution of this research 57
3.4.3 Managerial implication of the results 58
3.4.4 Limitations and future research directions 60
CONCLUSION 61
LIST OF REFERENCES 62
APPENDICES 68
In the modern world, the hotel industry is essential to delivering guests comfort and satisfaction. High standards of service and outstanding hospitality are necessary in this fast-paced industry, but they also call for effective operations and a strong organizational culture that establishes the organization's internal relationships, guest service philosophy, and general hotel ambiance.
Employee outcomes and many performance metrics have been proven to be significantly influenced by an efficient company culture. As an illustration, organizational cultures that emphasize security, cooperation, and respect for one another are likely to foster a sense of commitment and loyalty among employees (Kerr & Slocum, 2005).
The importance of understanding organizational culture to improve guest satisfaction in hotel industry is obvious from a variety of factors obtained from recent research and expert viewpoints. A well-trained and equipped employees that can act quickly and intelligently to increase guest satisfaction is essential to providing a high level of service (Karagiannis, 2024). Staff empowerment has the capacity to elevate a mediocre guest experience to an outstanding one, leaving a lasting impression on the guest. Employees that possess both technical and soft skills such as empathy, communication, and problem-solving abilities are better equipped to engage guests in meaningful ways that boost their pleasure and make their stays unforgettable (Karagiannis, 2024). Organizational culture is crucial to an organization's success in the hotel industry, since building strong client relationships is essential (Иванова, 2022). In addition to influencing the overall character of a hotel, organizational culture also affects teamwork, guest service, and, eventually, the company's profitability (Reinhart, 2018).
The Ritz-Carlton Hotel Company has a history of presenting an organizational culture that prioritizes providing excellent guest service. Two Malcolm Baldrige National Quality Awards were given to them. The United States developed the Malcolm Baldrige National Quality Award (MBNQA). Congress, which was established in 1987, is the highest honour granted upon American companies that succeed in the implementation of quality management systems. It strives to both highlight individual accomplishments and increase public awareness of the vital role that quality management plays. The Ritz-Carlton views the award as a testament to their dedication to excellence in seven critical areas: operations management, workforce empowerment, measurement and analysis, results, leadership, strategy, and customer relations. These results further solidify the Ritz-Carlton's standing as a benchmark for performance excellence in the highly competitive hotel industry (Garvin).
Additionally, company has won praise for superior guest satisfaction from the hotel industry. Thus, The Ritz-Carlton is a wonderful source of best practices when an organization wishes to learn how to create and maintain a culture with a strong customer focus and outcomes reflecting service excellence (Schaefer, 2015). Given the dynamic nature of the hotel industry, which is marked by improvements in technology, shifting guest tastes, and worldwide events like the COVID-19 pandemic, it is important to comprehend and cultivate a strong organizational culture, such as that of the Ritz-Carlton Hotel Company (Feniger, 2023). The contemporary market necessitates not only outstanding customer service but also a strong dedication to flexibility, durability, and creativity. Organizational culture plays a crucial part in attaining sustainable success as businesses work to manage this complexity while keeping an eye on employee engagement and guest satisfaction. Therefore, understanding the aspects of Ritz-Carlton's organizational culture and how it effects guest satisfaction is crucial for guiding strategic choices and best practices in the hotel industry.
For the current study, the following research question is set: What are the aspects of the organizational culture at Ritz-Carlton Hotel Company, which effects on guest satisfaction?
Research object: The organizational culture of Ritz-Carlton Hotel Company.
Research subject: The relationship between the organizational culture of Ritz-Carlton and guest satisfaction.
The goal of the study is to define what aspects of Organizational Culture of the Ritz-Carlton Hotel Company affects the guest satisfaction.
To achieve this goal, the following objectives are set:
• To conduct the literature review on organizational culture and its main characteristics. It will help in identifying the key theoretical concepts and determine the research methodology.
• To examine the literature on how organizational culture affects hotel guests' satisfaction. It will help to determine the fundamental elements and how they relate to an organization's ability to operate successfully in the hotel industry.
• To conduct an analysis of the Ritz-Carlton’s organizational culture based on available information, including company statements, reports, employee survey and guest reviews. By synthesizing and interpreting this data, key aspects of Ritz-Carlton's organizational culture can be identified and analyzed.
• To provide the key aspects of the Ritz-Carlton’s organizational culture, which affects guest satisfaction. It will allow to show real-world practices and outcomes of organizational culture in the hotel industry.
This paper includes an introduction, three chapters, and a conclusion. The first chapter includes a literature review to investigate the idea of organizational culture and its historical evolution. Schein, Waterman, Deal, and Kennedy are some of the founders, whose works were explored in this paper, to better understand the field of study. The key concepts of organizational culture offered by authors like Spivak, Pettigrew, Brown, and Hofstede were also taken into consideration. Main typologies of organizational culture were also reviewed in this chapter, with a focus on Schein and Denison's models. Schein's methodology is significant for this research since it takes a distinct approach to categorizing cultures into different levels, and the description of relationship between organizational culture and performance, which is greatly influenced by Denison's model...
Employee outcomes and many performance metrics have been proven to be significantly influenced by an efficient company culture. As an illustration, organizational cultures that emphasize security, cooperation, and respect for one another are likely to foster a sense of commitment and loyalty among employees (Kerr & Slocum, 2005).
The importance of understanding organizational culture to improve guest satisfaction in hotel industry is obvious from a variety of factors obtained from recent research and expert viewpoints. A well-trained and equipped employees that can act quickly and intelligently to increase guest satisfaction is essential to providing a high level of service (Karagiannis, 2024). Staff empowerment has the capacity to elevate a mediocre guest experience to an outstanding one, leaving a lasting impression on the guest. Employees that possess both technical and soft skills such as empathy, communication, and problem-solving abilities are better equipped to engage guests in meaningful ways that boost their pleasure and make their stays unforgettable (Karagiannis, 2024). Organizational culture is crucial to an organization's success in the hotel industry, since building strong client relationships is essential (Иванова, 2022). In addition to influencing the overall character of a hotel, organizational culture also affects teamwork, guest service, and, eventually, the company's profitability (Reinhart, 2018).
The Ritz-Carlton Hotel Company has a history of presenting an organizational culture that prioritizes providing excellent guest service. Two Malcolm Baldrige National Quality Awards were given to them. The United States developed the Malcolm Baldrige National Quality Award (MBNQA). Congress, which was established in 1987, is the highest honour granted upon American companies that succeed in the implementation of quality management systems. It strives to both highlight individual accomplishments and increase public awareness of the vital role that quality management plays. The Ritz-Carlton views the award as a testament to their dedication to excellence in seven critical areas: operations management, workforce empowerment, measurement and analysis, results, leadership, strategy, and customer relations. These results further solidify the Ritz-Carlton's standing as a benchmark for performance excellence in the highly competitive hotel industry (Garvin).
Additionally, company has won praise for superior guest satisfaction from the hotel industry. Thus, The Ritz-Carlton is a wonderful source of best practices when an organization wishes to learn how to create and maintain a culture with a strong customer focus and outcomes reflecting service excellence (Schaefer, 2015). Given the dynamic nature of the hotel industry, which is marked by improvements in technology, shifting guest tastes, and worldwide events like the COVID-19 pandemic, it is important to comprehend and cultivate a strong organizational culture, such as that of the Ritz-Carlton Hotel Company (Feniger, 2023). The contemporary market necessitates not only outstanding customer service but also a strong dedication to flexibility, durability, and creativity. Organizational culture plays a crucial part in attaining sustainable success as businesses work to manage this complexity while keeping an eye on employee engagement and guest satisfaction. Therefore, understanding the aspects of Ritz-Carlton's organizational culture and how it effects guest satisfaction is crucial for guiding strategic choices and best practices in the hotel industry.
For the current study, the following research question is set: What are the aspects of the organizational culture at Ritz-Carlton Hotel Company, which effects on guest satisfaction?
Research object: The organizational culture of Ritz-Carlton Hotel Company.
Research subject: The relationship between the organizational culture of Ritz-Carlton and guest satisfaction.
The goal of the study is to define what aspects of Organizational Culture of the Ritz-Carlton Hotel Company affects the guest satisfaction.
To achieve this goal, the following objectives are set:
• To conduct the literature review on organizational culture and its main characteristics. It will help in identifying the key theoretical concepts and determine the research methodology.
• To examine the literature on how organizational culture affects hotel guests' satisfaction. It will help to determine the fundamental elements and how they relate to an organization's ability to operate successfully in the hotel industry.
• To conduct an analysis of the Ritz-Carlton’s organizational culture based on available information, including company statements, reports, employee survey and guest reviews. By synthesizing and interpreting this data, key aspects of Ritz-Carlton's organizational culture can be identified and analyzed.
• To provide the key aspects of the Ritz-Carlton’s organizational culture, which affects guest satisfaction. It will allow to show real-world practices and outcomes of organizational culture in the hotel industry.
This paper includes an introduction, three chapters, and a conclusion. The first chapter includes a literature review to investigate the idea of organizational culture and its historical evolution. Schein, Waterman, Deal, and Kennedy are some of the founders, whose works were explored in this paper, to better understand the field of study. The key concepts of organizational culture offered by authors like Spivak, Pettigrew, Brown, and Hofstede were also taken into consideration. Main typologies of organizational culture were also reviewed in this chapter, with a focus on Schein and Denison's models. Schein's methodology is significant for this research since it takes a distinct approach to categorizing cultures into different levels, and the description of relationship between organizational culture and performance, which is greatly influenced by Denison's model...
This study aimed to determine the effect of organisational culture on guest satisfaction in the hotel business using The Ritz-Carlton Hotel Company as a case study.
In order to do this, the study reviewed the theoretical foundations of organizational culture, delved at a number of typologies, and assessed which models would be most useful for evaluating Ritz-Carlton's organizational culture. More specifically, Schein and Denison's models were employed to provide an in-depth analysis. The study also examined past studies emphasizing the important role that culture plays in guest satisfaction. The report also examined the hotel industry, noting that Marriott International and its Ritz-Carlton Hotel brands have become known for their exceptional quality, customer service, and culture. The Ritz-Carlton Hotel Company was a perfect candidate for this study because of its reputation.
The study included both qualitative and quantitative methods to collect data from both employees and guests. The findings demonstrate that elements of The Ritz-Carlton's strong and consistent organizational culture, which has a major impact on guest satisfaction, include high standards of service, employee empowerment, and attention to detail. The tangible artifacts, espoused values, and underlying beliefs that cultivate an environment that promotes excellence and consistency in service delivery are the reason for high levels of guest satisfaction and loyalty. In order to effectively meet and exceed guest expectations, The Ritz-Carlton fosters a culture that places a premium on quality, individualised service, and ongoing improvement. The study highlights the importance of employee empowerment and adaptability in maintaining high standards of guest service and attending to their requirements.
Overall, this study shows that attaining higher levels of guest satisfaction in the hotel industry depends heavily on having an organizational culture that is clearly defined and regularly implemented.
In order to do this, the study reviewed the theoretical foundations of organizational culture, delved at a number of typologies, and assessed which models would be most useful for evaluating Ritz-Carlton's organizational culture. More specifically, Schein and Denison's models were employed to provide an in-depth analysis. The study also examined past studies emphasizing the important role that culture plays in guest satisfaction. The report also examined the hotel industry, noting that Marriott International and its Ritz-Carlton Hotel brands have become known for their exceptional quality, customer service, and culture. The Ritz-Carlton Hotel Company was a perfect candidate for this study because of its reputation.
The study included both qualitative and quantitative methods to collect data from both employees and guests. The findings demonstrate that elements of The Ritz-Carlton's strong and consistent organizational culture, which has a major impact on guest satisfaction, include high standards of service, employee empowerment, and attention to detail. The tangible artifacts, espoused values, and underlying beliefs that cultivate an environment that promotes excellence and consistency in service delivery are the reason for high levels of guest satisfaction and loyalty. In order to effectively meet and exceed guest expectations, The Ritz-Carlton fosters a culture that places a premium on quality, individualised service, and ongoing improvement. The study highlights the importance of employee empowerment and adaptability in maintaining high standards of guest service and attending to their requirements.
Overall, this study shows that attaining higher levels of guest satisfaction in the hotel industry depends heavily on having an organizational culture that is clearly defined and regularly implemented.
