Consider the Ritz-Carlton with respect to management control, and decide whether the Ritz-Carlton exemplifies management control in an empowered setting or does not.
Ritz-Carlton sets performance measures for maintaining its impressive reputation and ensures that employees see how they contribute. The measures are based on the key factors behind the company's success: its mystique, employee engagement, customer engagement, product service excellence, community involvement, and financial performance. Financial performance is viewed as the result of achieving the other goals. For each success factor, cross-functional teams identify targets as detailed as the number of scuff marks on elevator doors or the percentage of satisfied employees at a location. The teams include frontline employees, so that early in the control process, employees already feel their input matters. At each location, at the beginning of every shift, all employees gather for a meeting to discuss activities, issues, and Ritz-Carlton's business philosophy. They compare recent performance against the company's targets in each area. These conversations reinforce the key performance factors and help employees appreciate the importance of what they do. Each business unit has up to three priorities to focus on, with each employee working to improve customer, employee, or financial results. Employees appreciate their role in giving each guest a special experience. When Joanne Hanna checked into a Ritz-Carlton after a grueling series of airport delays that caused her to miss several meetings, a hotel employee carried her bags and listened to her frustration. He suggested a spa visit or a masseuse, and when he learned she didn't have time, he brought her a scented candle—and had the information entered into Ritz-Carlton's database. Now, on every visit, Hanna finds a candle in her room, reminding her of one employee's empathy.
1. Which of the following best describes decision making at the Ritz-Carlton?
a. Frontline employees cannot make decisions, and must wait for upper management's approval.
b. Frontline employees cannot make decisions, but can take action after a supervisor gives the ok.
c. Frontline employees can make decisions
2. Which of the following best describes when controls are used?
a. In real time
b. Two years prior
c. After the fact
3. At the Ritz-Carlton, how is information shared and used?
a. To facilitate decision making and improvements
b. To punish
c. To embarrass and belittle low-performing employees
4. Which of the following best describes the reward system at the Ritz-Carlton?
a. It includes a great deal of intrinsic rewards generated from serving customers and working as a team
b. It is low for industry standards
c. It is based mostly on financial performance
5. Which of the following best describes the controls used at the Ritz-Carlton?
a. The focus is on financial control
b. There is mostly bureaucratic control
c. There is a great deal of clan control