The 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. These teams involve employees from every level$$including frontline employees, so early in the control process employees feel their input matters.

Effective control systems maximize benefits and minimize problems. To achieve this, control systems must meet several criteria:

have valid performance standards

communicate information to employees

have standards that are acceptable to employees

use multiple approaches

recognize the relationship between empowerment and control

The goal of this activity is to demonstrate the importance of effective control systems.

This activity is important because it shows how successful companies maximize benefits and minimize problems.

Read the mini$-$case to understand the controls in place at the Ritz$-$Carlton. Using that information, select the corresponding criteria of an effective control system that each employee demonstrated.

The Ritz$-$Carlton sets performance measures for maintaining its impressive reputation and ensures that employees see how they contribute. Kim, a manager in housekeeping, is expected to train the staff members to help them meet the time requirements for cleaning each room. Kim met with her staff to ask for their ideas to maximize efficiency without compromising the company$$s standards for cleanliness. The staff shared time$-$saving tips. When Samantha was having difficulty meeting the time requirements, she asked Kim to work with her so she could improve her level of efficiency. Samantha$$s team member, Cindy, was new and seemed slow and unable to meet the efficiency standards. Lauren, the team leader, met with Cindy to make certain she understood the standards.

At each location, at the beginning of every shift, all employees gather for a meeting to discuss activities, issues, and Ritz$-$Carlton$$s business philosophy. Chris, the manager of the Chicago hotel, reviewed recent performance against the company$$s targets, looked at the customer satisfaction report, and sent an e$-$mail to his management team requesting each employee take the new corporate survey to measure their satisfaction.

When Joanne Hanna checked into the Ritz$-$Carlton in Chicago after airport delays caused her to miss several meetings, William carried her bags and listened to her frustration. He suggested a spa visit or a massage, and when he learned she didn$$t have time, he brought a scented candle to her room and had Susie enter the information into Ritz$-$Carlton$$s database. A month later, Nicole took Joanne$$s reservation for her visit to the Ritz$-$Carlton in New York. When she arrived, Joanne found a candle in her room.