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Essay / Research Paper Abstract
A 3 page paper discussing training's influence on employee retention at Ritz-Carlton hotels and Pal's Sudden Service, a fast food chain in east Tennessee. Both companies have won the Baldrige Award for Quality; both have employee turnover rates at or below one-third of the average rates of their respective industries. Not only did the companies greatly improve customer satisfaction, they also made themselves employers of choice and reduced total training costs by reducing turnover. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KShrEmpRetSvc.rtf
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Unformatted sample text from the term paper:
The Malcolm Baldrige Award for Quality typically has been reserved for large businesses, not because of any bias against small ones or lack of acknowledgement of the value of
small business to the national economy, but because of simple logistics. Though small business collectively provides most of the jobs in the country, individual small businesses typically do not
have the financial resources required to institute extensive training and development programs. Because small business generally pays less and frequently offers no benefits, most see extensive training of individual
employees to be less valuable than in big business where the organization can expect the individual to remain with the company long enough to regain its training investment. Ritz-Carlton Hotels
Former CEO Horst Schulze says that management was elated when, consisting of only five hotels, Ritz-Carlton was voted the best hotel company by
some consumer organizations and travel-agent groups in 1986 and 1987. That elation was short-lived, however: "we realized that our customer-satisfaction rate was, at best, lousy ... We did
not know what good was because wed never benchmarked. Worse, we did not know how to make it better" (Schulze, 1994; p. 58).
After implementing quality initiatives and becoming the first service organization to win the Baldrige Award, the company realized benefits as rewarding as increased customer loyalty. The result has been
that guests still rate Ritz-Carlton highest in customer satisfaction, and the company maintains a turnover rate of just 30 percent, rather than the industry average of nearly 100 percent.
This means that the company has to devote far fewer resources to recruiting and orientation than its competitors, enabling it to focus on daily reinforcement of the message that is
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