The document summarizes research conducted by Ramada Franchise Systems (RFS) to improve employee work environments and increase customer satisfaction. RFS surveyed employees and found issues with training procedures, motivational programs, and staffing standards across franchises. RFS then made changes to hiring, training, rewards programs, and implemented employee evaluations. These changes resulted in a 30.5% increase in good to exceptional customer satisfaction ratings and a 24% decrease in unacceptable to poor ratings according to a customer satisfaction survey. RFS was also recognized with awards for these improvements. The document recommends continuing successful programs and incorporating employee feedback into ongoing initiatives.

1. Brad Tuffy & Lynn Kilduff

3. Research in the hospitality industry in regards to customer satisfaction

4. Ramada’s own research to improve employee work environments

5. Background Information

6. In 1996 a customer satisfaction survey for mid tier hotels showed downward trends

8. Hiring, training, and motivation

9. Ramada felt by taking care of these variables they could offer the best service to their customers

10. Ramada is franchised

11. It is a challenge to get all owners operating at similar standards

12. Research Question

15. Employees of Ramada Franchise Systems

16. Sampling Plan

17. 24 Researchers traveled to each Ramada franchise and created a party like atmosphere with food and entertainment in an effort to get honest responses from employees.

18. Summary of respondents

19. Training procedures proved to be boring and ineffective

21. Reporting D.K. Shifflet service ratings showed increases after the changes 8-10 (good to exceptional) range went up 30.5% 1-4 (unacceptable to poor) range went down 24% New rewards program cashes in More employees received awards with the new plan

22. Reporting continued… Personal Best Won HSMAI’s Best of Show Not just an HR standard Employees report success stories Stories are used in RFS advertising $8 million in 3 years has been dedicated to advertising these stories

23. Recommendations Continue Personal Best ads Let employee’s stories reflect RFS Raises level of customer service Have smaller rewards add up to occasional large rewards Small, achievable rewards raise morale Rewards may become stagnant and bore employees Keep hard-to-achieve goals to reward frequent small reward winners

24. Recommendations continued… Incorporate questionnaires on evaluations Employees can offer peer nominations for awards Have several job related questions on satisfaction Training processes Management decisions Rewards offered Save money No need to hold huge seminars and parties Employee’s interest in responding Evaluations benefit the workforce More likely to fill out rather than discard