Hotel Industry in China: the White Swan Hotel - Literature review Example

?Chapter 2 Review of Related Literature Introduction Hotels refer to physical structures that are mainly operated by human resources who make sure that all promised services are efficiently delivered. The individual motivation in hotel employees, regardless of skill, competency, or educational attainment, is a fundamental component of quality service delivery (Woods 2003). As the hotel industry continues to expand, hotel management has focused on competing for committed employees; according to research, it has become a great challenge for hotel organizations to successfully motivate their employees for these individuals to be able to deliver quality hotel services. Because high levels of absenteeism and voluntary turnover are evident in the hotel industry, motivation plays a significant role for attaining high levels of performance from employees as well as satisfaction from their customers. It has been believed that there are a wide range of factors that hinder hotel employees from being motivated and are causing adverse outcomes, such as the nature of their job, low wages, work demands, and long working hours, to name a few (Johnson 2004). Therefore, to be able to address problems with employees, focusing on the concept of employee motivation can be crucial and continual issue for the management of hotel operations. Ensuring that employees are motivated in the workplace can also keep these working individuals to be satisfied with their work; thus, keeping workers satisfied will allow them to perform and meet or exceed expected norms. On the other hand, low levels of performance and productivity can be expected from unsatisfied employees (Lou 2003). Job dissatisfaction together with poor performance often results to more employees having the intentions to quit their job in the hotel industry. According to the Hong Kong Hotels Association, at least 20% of employees in Hong Kong hotels switch or resign from their work. As asserted by Yu (1999), improving work conditions along with maintaining high levels of motivation among employees can help reduce voluntary turnover and increase employee productivity. Thus, an important role of the human resource management is to gain insight into their employees’ needs and identify the necessary motivational processes. The following sections will look into the hotel industry of China, definition of motivation, various motivational theories, and the two-factor theory proposed by Herzberg, Mausner, and Snyderman (1959). The White Swan Hotel and Hotel Industry in China There has been an increased attention towards research on the economy and business practices in China (Ambler, Witzel, and Xi 2008). As the Chinese economy expands, an increasing number of multinational companies have been in operation as the country’s government focuses on the privatization of sectors, demonstrating the transition from a centrally-planned economy to a capitalist one. The hospitality industry of China has become a large contributor to the country’s gross domestic product increase; the organizations in this sector have also made numerous work opportunities available (Wang 2008). International hotel chains have become easily accessible for both Chinese and foreign guests (Xiao, O’Neill and Wang 2008), with an increasing number of foreign tourists in the country. Considered as one of the leading hotels two decades ago, the White Swan Hotel in Guangzhou, China is highly equipped with a wide range of services and amenities. Its physical settings and environment play an important in attracting and improving the perceptions of guests with regards to the overall hotel. As an international hotel, its foreign chains include that of San Francisco, Alnwick, Strutford, Greytown, and Pickering. However, it remains to be a great challenge for Chinese hotel organizations to maintain a good reputation and keep customers satisfied through committed and motivated employees. In previous studies, it has been shown that Chinese hotels have been delivering poor quality of services, such as poor levels of hygiene (Tsang and Qu 2000). Chinese employees have also been reported to have lower levels of involvement and commitment to work compared to other nations (Kulesa 2008). The management of the Chinese hotel industry has been pointed out to have had problems of its own such as excessive workload and demands, high rates of employee turnover, ineffectual internal labor markets, low and/or unstable wages, as well as poor professional prestige (Fenci and Masarech 2008). Such factors have placed considerable pressure on the management of hotel organizations for the successful maintenance of daily operations along with the implementation of long-term planning. Motivation: An Overview Motivation has been considered as a very fundamental responsibility in managing human resources (Jeris 1999). Numerous studies have been carried out to define motivation, one of which is that of Dessler (1980) who characterized the concept as very simple yet very complex aspect for management work. Its simplicity refers to the fact that individuals are initially motivated to act or behave in a certain which, they feel, may lead to positive outcomes. Thus, to motivate a person is easy if one knows what he or she needs or wants. Furthermore, according to Daschler and Ninemeier (1989), motivation refers to the driving force that instigates an employee’s action towards achieving a particular goal. To place this comprehensive definition into hospitality operation settings, motivation may refer to the action of supervisor in encouraging and influencing individuals in instigating action. Similarly, Rey and Wieland (1985) asserted that motivation refers to the force in an individual that drives him or her to accomplish a goal through certain actions. As stated by Madsen (1974), motivation is a relevant construct in psychology as human behavior cannot be understood or explained without knowing why or how people are motivated. In agreement, Drummond (1990) noted that motivation is inherent in the person and will assist in explaining why individuals behave in a certain way. Motivation can also be a complex process that integrates three important factors- those that encourage the person to behave in a certain way, those that guide such behavior, and those that help maintain this behavior. Satisfying individuals’ needs can be very difficult as people have different attributes that may greatly influence the behavior. Other factors may include attitudes, interests, values and principles, personality, emotions, and life experiences. Thus, within a workplace, it is necessary that a positive organizational climate is established to keep employees motivated. According to Mosley, Megginson, and Pietri (2001), employee motivation can be divided into three levels- direction, effort and persistence. The direction if an individual’s behavior is characterized by the actions and behaviors that he or she prefers to carry out due to a particular goal whereas the level of effort refers to the extent to which the individual is keen on working on his or her actions and behaviors toward the goal. Finally, the level of persistence is demonstrated through the willingness of the person in continuing with his or her actions and behaviors to pursue the goal regardless of challenges. Importance of Motivation in the Hotel Industry The hotel industry has focused on employee motivation as managers have realized the paramount significance of this concept; if employees are driven and enthusiastic with regards to accomplishing tasks and performing at their best, organizations can obtain numerous benefits from such (Zhang 2005). Organizational goals and objectives cannot be successfully realized unless employees are committed and motivated in achieving their mission, hence the need to increase their drive regarding work. Hotel employees are also faced with work situations with which they are mainly motivated to accomplish owing to the need to obtain personal goals that they have set for themselves (Burke, Koyuncu, and Fiksenbaum 2008). The hotel industry has emphasized the establishment and maintenance of a high level of motivation among their employees due to its associations with increased commitment, enhanced performance, as well as reduced turnover and absenteeism, although other studies may have indicated that motivation does not always necessarily increase worker productivity. Employee motivation may include that of towards work environment, the work itself, the management and/or colleagues, or the organization as a whole. Lack of such motivation in hotel organizations is most likely to cause their employees to quit their jobs or switch to other employers (Jabulani 2001). Absenteeism may also be frequently evident along with low levels of service delivery quality; thus, due to absenteeism, hotels will experience problems with scheduling and staffing along with an increase in overall payroll costs. Absenteeism can take place in either two forms- authorized and unauthorized. While authorized absenteeism does not necessarily cause a negative influence on hotels due to the advanced planning for a worker’s absence, unscheduled absences can yield substantial difficulties for a hotel, its employees, and their customers. Due to low levels of job satisfaction, motivation, and commitment, employees may increase their intentions to withdraw, leading to absenteeism (Klidas, van der Berg, and Wilderom 2007). Hotels can also experience considerable difficulty in attracting and retaining their workers when motivational strategies are not demonstrated. Employees who work in hotels require a certain level of knowledge, skills and specialized abilities; however, with the absence of motivation, the advancement of their career may not come into view. For the hotel industry, a wide range of factors have examined which may contribute to the motivation of their employees (Singh 2000). For instance, intrinsic motivation, also referred to as internal work motivation, has been shown to drive workers in putting considerable effort in their work and performing more than what is expected of them. Other factors such as income, monetary reward, advancement opportunities, and job promotions have all been shown to influence motivation levels (Nel, Gerber, van Schultz, Sono, and Werner 2001). Furthermore, self-esteem needs, recognition from others and job challenge have also been indicated to motivate working individuals. Intrinsic refers to those that naturally belongs to the individual (e.g. self esteem needs, feelings of accomplishment) while extrinsic is characterized by factors that operate from the outside (e.g. monetary rewards). Meanwhile, factors that may cause the reduction of motivation in hotel employees can include conflicts in the workplace, unsatisfactory income and benefits programs, unattainable job expectations, insufficient training, and unfavorable working conditions, to name a few (Robbins, Odendaal, and Roodt 2003). It is, thus, of great significance that research focuses on the role of intrinsic and extrinsic work motivation for hotel employees who may often experience excessive work demands, low wages, poor reputation, and little opportunity for professional advancement. When the management of hotels and their employees acknowledge the significance of employee motivation, both parties will obtain benefits from understanding how workers’ motivation functions. Hotel employees may prefer to be motivated in such a way that they will be encouraged to perform their tasks and, at the same time, enjoy their jobs (Gill and Mathur 2007). If the hotel management is able to implement strategies that can effectively improve worker motivation, such motivation can either directly or indirectly. Turnover has various forms such as voluntary or involuntary; it can also come as avoidable or unavoidable. Although involuntary turnover takes place when workers are forced to terminate their jobs with the organization, voluntary turnover takes place when workers leave the organization owing to their personal intentions and decisions. Meanwhile, unavoidable turnover occurs when a company does not have control over why employees voluntarily exit their jobs, such as employees relocating to other places or staying home to care for children or spouse (Bakabas, Yavas, Karatepe, and Avci 2003). Avoidable turnover takes place when workers leave the organization due to higher wages or more favorable working conditions in other employers, or having problems with the management, to name a few. Majority of employee turnovers in the hotel industry has been brought about by the decisions of entry-level employees to switch employing organizations that can address their needs and interests, such as providing them with better working conditions. Thus, if employees do not find satisfaction in their work conditions and take more interest in switching employers to improve such circumstances, it is important that the hotel management ensure that their motivation levels are increased and maintained (Tracey and Hinkin 2004). This way, the work satisfaction among employees may lead to useful consequences such as increased commitment or enhanced service delivery to customers. In Hong Kong, for instance, employee turnover in hotels has become a common trend, indicating the crucial need for their management to understand and instigate the necessary actions for satisfying, motivating, and retaining employees for a long time. Motivational Theories A wide range of theories have been developed in order to explain and look into the concept of motivation. For instance, the Theory of Needs by Maslow (1954) explains that the needs of individuals depend on certain levels with which higher level needs, including the need for self-esteem and self-actualization, can only be addressed if lower level needs, including physiological and needs along with the need for belongingness have already been achieved. Furthermore, the ERG theory developed by Alderfer (1972) has suggested that individuals have three main needs- existence, relatedness, and growth. Existence is at the lowest level with which human beings need to stay safe and alive at present and in the future; satisfying such existence needs can make an individual feel physically comfortable and secure. Next, relatedness incorporates social needs with which a person begins to take interest in having relationships with others as well as in what they may think of him or her. Thus, the feeling of identification and belongingness in the society is achieved. Finally, growth, at the highest level, recognizes the need for the individual to grow and develop in order to obtain a sense of fulfillment and wholeness. The Needs Theory of McClelland (1961) also recognizes three needs- the need for achievement, power, and affiliation; as his study suggested, achievement needs, along with power and affiliation needs, to a lower extent though, can influence job performance, thereby associating worker motivation with job outcomes. Additionally, the Equity Theory by Adams (1965) has indicated how employees will seek and pursue equitable situations as they compare themselves to colleagues, considering their job, efforts toward job accomplishment, as well as job outcomes. Despite the large number of theories on motivation, the theory on motivation of Herzberg et al (1959) has been selected as the framework for the current study due to its wide range of categories that can allow researchers to take a more in-depth look and evaluation on employee motivation. Theoretical Framework: Herzberg’s Two-Factor Theory According to Herzberg et al (1959), managers can make use of motivators and hygiene factors in the workplace to ensure that their employees are continually motivated. Motivators are known as the motivating factors which help employees obtain satisfaction, thereby enabling them to achieve better performance. Such factors include recognition, achievement, the work itself, responsibility, personal growth, and advancement (Herzberg 1966). Maximizing such motivating factors can significantly enhance the job satisfaction of employees. In addition, managers can attempt to minimize the components that are associated with job dissatisfaction, known as hygiene factors, which include organizational policies, relationships with managers, working conditions, salary, status, security, and relationships with colleagues. If employees perceive that these hygiene factors fall below the acceptable level, their work dissatisfaction may increase. It is also relevant to consider that overlapping relations may occur in such categories, as suggested by Wiley (1997). For instance, compensation is initially considered as an extrinsic component; however, certain types of compensation such as an increase in pay or bonuses, if properly implemented, can also generate a sense of accomplishment among employees, thereby establishing an intrinsic outcome of being grateful for doing a good job. Interestingly, the theory explains that lack of satisfaction does not necessarily mean that the individual is dissatisfied as satisfaction and dissatisfaction are in two discrepant sides (Balmer and Baum 1993). This suggests that when employees do not believe that they are being satisfied with the motivators, they may as well not believe that they are dissatisfied with the hygiene. Hence, they are situated in an indeterminate state state where satisfaction or dissatisfaction is achieved; however, such state creates unproductive behavior for the employees and their organization, not allowing innovation, creativity, and development to be utilized. Thus, it is of great value for organizations and their management to realize and understand such job aspects that can enhance the satisfaction among their workers and make the best use of them. Empirical Studies A number of human resources issues have come about due to the lack of motivation and commitment among employees toward their work and organization. For instance, in Hong Kong, employee turnover among hotels is at a high rate as employees leave their jobs within less than one year of service. High rates of voluntary turnover among employees are a costly concern, weakening the morale of hotel employees and adversely influencing the quality of service delivery for customers. Hence, the study of Lam, Lo and Chan (2002) focused on investigating the influence of work factors that may affect the motivation, organizational commitment, and intentions of leaving among employees in Hong Kong hotels. Owing to the fact that majority of employee turnover in the hotel industry takes place during the primary stages of their employment and that the effects of motivation and commitment on service delivery to customers are considerable, it is beneficial to identify the factors that can demonstrate much influence on employees’ motivation, commitment, and intentions to quit work. The researchers made use of 249 questionnaires that were gathered from “newcomers” who worked for member hotels of the Hong Kong Hotels Association, all of such employees having an employment history of 9 months or less. Findings indicated that employee motivation and commitment among new employees were significantly associated with their relationships with managers as well as with colleagues. The job itself was also an important motivating factor for these workers with which the right amount of challenge may encourage employees to work more, although too much demand may decrease their commitment. This suggests that active support, especially from managers, such as providing opportunities for training and mentorship or clearly communicating tasks and responsibilities, can be beneficial for new employees, increasing their motivation and commitment to work and reducing their intentions of leaving their job. In another study by Hai-yan and Baum 92006) on hotel workers, particularly frontline employees, the main focus was to look into the goals and attitudes of frontline employees in Chinese hotels along with the practices and policies of their management that can be of assistance in driving them to achieve such plans. In order to collect data for the study, survey questionnaires were distributed among four- and five-star hotels in famous tourist cities such as Beijing, China, Tianjin, Jinan, Weihai, and Qingdao. 350 usable questionnaires were distributed and 276 were gathered as usable responses from frontline employees who worked for such hotels. Findings showed that the Chinese hotel industry employs inadequate human resource management strategies. Frontline employees possess bachelor or other high degrees and are not satisfied with the overly demanding work, low incomes, and few opportunities for promotion or financial gain. Thus, monetary rewards and favorable working conditions have been shown to be the most important factor to consider for satisfying frontline employees in Chinese hotels. Support from managers and co-workers were also identified as relevant factors that helped employees achieve satisfaction with their workplace. Hence, the provision of a flexible salary package along with managerial support and proper amount of work may help satisfy hotel employees, encouraging them to stay committed to the job and increasing the possibility of retaining skilled and knowledgeable employees. The study of Clark, Hartline, and Jones (2008) focused on the commitment of hotel managers in providing support for their employees as well as in establishing open relationships and valuing communication and encouragement. Although certain practices, such as recruitment and training, can help ensure that service quality in hotels are at a superior level, the commitment of employees to work may also influence their delivery of services. Survey questionnaires were distributed and collected from 236 general managers and 743 hotel employees. Findings showed that hotel managers who demonstrated commitment to supporting employees and enhancing service quality through an empowering leadership behavior and style positively influenced the job satisfaction and commitment of their employees. By creating a transformational environment, managerial support and the relationships established between managers and workers play a very important role in satisfying these employees and increasing the level of service quality that they provide to hotel guests. Conclusion Motivation plays a fundamental role for understanding the actions and behavior of individuals; hence, its function in organizational performance is of great importance. To identify how employees are motivated in the hotel industry, numerous theories have been developed, although Herzberg’s two-factor motivation theory covers a wide range of components that managers can use to ensure employee motivation, particularly the motivators and hygiene factors. High levels of motivation can cause increased performance and commitment towards one’s work and organization; on the other hand, unmotivated workers may lead to higher rates of absenteeism and voluntary turnover. 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