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The Ritz-Carlton: Transformational Leadership In Hospitality And Tourism Industry

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1. Executive summary
This report is about the leadership in hospitality and tourism industry, connecting the theoretical concepts in the hospitality, culture and people subject with the real world organization experiences. In this report, the literature review is on the effect of leadership style on employee’s well-being and the results found that the transformational leadership is most suitable style in hospitality industry, by conducting the survey to 433 employees at 5-star hotel in Turkey. The Ritz-Carlton’s leadership and empowerment are presented as a support for the research as it is the successful known hotel chain with transformational leadership style and the sources of information are reliable and recognizable.

2. Introduction …show more content…

In early 1900s, the Ritz-Carlton investing company established several hotels naming “The Ritz-Carlton”. In 1983, the Ritz-Carlton hotel company was formed and led by founding father, Colgate Holmes, along with Horst Schulze, Joe Freni, Ed Staros and Herve Humler It vision is “The Ritz-Carlton inspires life’s most meaningful journeys” and mission as “Provide genuine care and exceptional products and services resulting in profit leadership”. Currently, the Ritz-Carlton has 88 luxury hotels and resorts worldwide (The Ritz-Carlton, n.d.). The Ritz-Carlton is known for its unique luxurious experience with excellent customer service for the guests. Colgate Holmes and Horst Schulze are the inspired leaders in Ritz-Carlton …show more content…

Discussion/Analysis
A good example for transformational leader was Horst Schultze, former president and COO of the Ritz-Carlton hotel company, who put effort to win the Malcolm Baldrige National Quality Award for service in 1992. The Ritz-Carlton won the award again in 1999 as it meets the seven criteria, such as Leadership, Strategic Planning, Customer and Market Focus, Measurement Analysis and Knowledge Management, Human Resources Focus, Process Management and Business Results.
The Ritz-Carlton is proud of being the only company in the hotel industry receiving the award, which recognizes exceptional achievement in the practice of total quality management principles (The Ritz-Carlton, n.d.).
Under transformational leadership, leaders not only make job meaningful, interesting and challenging, but also inspires, coach and mentor the employees. Moreover, empowerment, giving employee responsibility and authority over their decisions, resources, and work, is the critical area in transformational leadership (Walker & Miller, 2012). This is where employee feel greater sense of ownership and responsibility into organizational works. The Ritz-Carlton motto is "We are Ladies and Gentlemen serving Ladies and Gentlemen”, this is where employees are inspired and empowered. To fulfil the guest's request, employees are empowered to "move heaven and earth". The ladies and Gentlemen are to cope with the company's gold standards, that are the Credo , the Motto, the three Steps of Service,

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