At the Ritz-Carlton employees feel like an important part of a modern success story. Hotel executive, Horst Schulze, wants his employees to be as comfortable as possible in their work environment, like they are working in there own home. So far it looks like it is working . Ritz has one of the lowest employee turnover rates in an industry plagued by a high rate of defections. Schulze encourages managers to praise employees often and explain the motivation behind their workplace decisions.
Schulze is using the two-factor theory, which is talked about in chapter four, that states “an individual’s relation to work is vital and that one’s attitude toward work can very well determine success or failure. By promoting good attudies towards the work place they are increasing the job satisfaction among the work staff. Schulze would like all higher management to be on a first name basis with all employees to create a friendly environment.
While Schulze may genuinely care about his employees it also makes good business sense to make sure that they are happy. “Hoteliers” know there is a correlation between employees satisfaction and guest satisfaction. “More than half of the factors that impact guest satisfaction are a result of people. ” Schulze and Ritz are creating a good work environment to increase job satisfaction and worker productivity. By recognizing the workers needs they are able to utilize the Hirerarchy of needs to promote a healthy attitude throughout the employees and guest alike.