1. Explain the role and process of exploration in Ramada’s research. What role d
ID: 395446 • Letter: 1
Question
1. Explain the role and process of exploration in Ramada’s research. What role did secondary data play in the exploration phase of the research?
2. How are the research findings reflected in the ultimate management decisions?
Ramada Demonstates Its Personal Best® >Abstract This case describes syndicated research in the hospitality industry that revealed trends in customer satisfaction and Ramada's proprietary research leading to the development ofthe Personal BestTMemployee hiring, training and motivation program. www.ramada.com The Scenario In 1996 the latest D. K. Shifflet survey of customer satisfaction in the hospitality industry showed mid-tier hotels continuing their downward trend in perceived customer service, reflected by more and more respondents giving ratings on customer service in the 7 or lower range on Shifflet's 10-point scale. While Ramada's satisfaction rates held steady, "It was only amatter oftime before we experienced the problen,"says Tim Pigsley, director of operations for Ramada Franchise Systems (RFS). Shifflet research highlighted three critical areas for study that could influence customer satisfaction: hiring (finding the best people to deliver Ramada's brand of exceptional service), training (giving employees the tools to deliver exceptional service), and motivation (providing the impetus for Ramada employees to deliver exceptional service). Unlike some of its competitors, RFS is a totally franchised system. In such an environment, not only must headquarters contend with the variable human factor of all service operations, but additionally, RFS must contend with differing "exceptional service"standards among owners of the nearly 900 Ramada properties. "Due to the franchised system of property management, we needed for each management team and each employee to be committed to the change to buy in to any new program whatever shape it would take," explains Pigsley. The Research "We wanted to learn and borrow from the best so we started with Disney. In every study done, the Disney experience is the benchmark for exceptional customer service. And they have a reputation for hiring the best people." Next, RFS approached Southwest Airlines. "They have captured the essence of fun' when air travel is seen as a commodity, a hassle. People disembarking Southwest planes have smiles on their faces," shares Pigsley. Next Ramada's fact-finders approached Carlson Hospitality, owners of restaurant TGI Friday's. "We wanted to understand what Used with pemission of Pamela S. Schinder 02001 TarwCarlson did to generate their low employee turnover,and high employee loyalty and Business Research Methods, 13e/SchindlerExplanation / Answer
Answer 1: The main focus of the Ramada research was on the improvement areas which were highly required to correct the customer related issues and to increase the customer satisfaction by considering factors related to hiring , employee training and development programs and at the same time benchmarking can be done based on 10-point scale ranking. This would help to have competitive advantage. The exploration research was focused on the change management programs towards the employee development and motivation by keeping the closer look towards the business processes and related operations. The exploration research was conducted in a structured way by determining the issues pertaining to the decrease in customer satisfaction by keeping the inputs considering the dimensions of employee hiring, employee training and employee development. The data was collected from the Shifflet’s research survey as the secondary sources, followed by the data analysis and reporting the findings and the comparison was done against TGI Friday, Southwest Airlines and Disney. The usage of secondary data helped Ramada to save effort, time and money, to have right set of interpretations rather investing time and effort towards the data collation.
Answer 2: The findings started reflecting in the management decisions by using Predictive Index for screening of the employees, usage of interactive tools for trainings, self-paced learning, more flexible approach for hiring, more rewarding programs for employees by focusing on every aspect of feedback received from the customers, more personal development programs for employees.
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