Total Quality Management Applications

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Ppresident of quality for The

ing, front desk), one team runs the restaurant, and

?Ritz-Carlton Hotel Company,

one team is responsible for banqueting. This hori-

LLC. That organization twice,

zontal structure creates a “leaner, linked, empow-

in 1992 and 1999, won the Malcolm Baldrige

ered organization.”

Award, a prestigious recognition of excellence in

Mr. Mene describes the managers in this type of

overall performance, leadership, profitability, and

organization as “coaches and advisers,” while man-

competitiveness. After he graduated from college,

agers in traditional organizations are more “chief

Mr. Mene went to work as a management trainee

technicians and problem solvers.” Mr. Mene reports

at Hilton. He has also worked in hotel manage-

that customer dissatisfaction has decreased.The new

ment positions at Hyatt, Westin International,

structure has resulted in fewer breakdowns and less

Omni, Portman Hotel in San Francisco, and

need for rework. In the past, the hotel experienced

L’ErmitageHotels. He also has conducted a great

problems with incorrect or late honor bar billings;

deal of research, particularly on the teachings of

guest rooms were always clean but were sometimes

Joseph Juran, a management specialist in quality

missing supplies; and, at times, when guests called

planning, improvement, and control.

for information or assistance, agents were not avail-

Mr. Mene states that competing for the Bald-

able and calls went unanswered. These problems

rige Award provided great feedback for the hotel.

have been dramatically reduced.

He explains the hotel was organized vertically; it

He states that quality management science is

is now organized horizontally to concentrate more

a new branch of knowledge. Traditional methods

on the critical processes that drive the company

of management that concentrate on selling hard,

and to provide more employee empowerment. For

raising prices, and forcing a profit cannot identify

example, a traditional hotel may have 30 depart-

and eliminate waste. He adds that, in any hotel,

ments, while the Ritz-Carlton has only four; each

30 percent of expenditures are the result of qual-

one is run by a horizontally organized team. One

ity failures and are unnecessary. He feels TQM is

team focuses on the pre-arrival process (customer

the most effective way to achieve revolutionary

contact with the sales office; making reservations;

results.

planning meetings, conferences, and banquets),