Relationship Between Work Ethics And Employee Behaviour In Australia’s Hotel Industry

Background Context

Discuss about the Employee Dissatisfaction And Turnover Crises In The Malaysian.

The purpose of the research study is to provide an overview on how the work ethics impacts the employee’s behaviour in Australia’s hotel industry. Work ethics is a kind of cultural norm which argues in support of being accountable as well as responsible for work that an individual does and thus is based on the belief that the work has an intrinsic value. Workplace ethics mainly guides how the employees conduct themselves in the workplace. Employee’s behaviour that is displayed at work is not always related to different aspects of job but basically on how an individual performs at the work.  This has been consistent with work ethics in which an individual are mainly accountable to work they does based on the ethical behaviour (Crane & Matten 2016). The first section of the research study focuses on the research problem, research purpose, research objectives and significance of research. The second segment of the study reviews on the literature relating to this specific research topic. In this segment, the theories relating to work ethics and employees behaviour has been explained. Also, the relationship between the theories are elucidated in this literature review section. The third section focuses on the methods that the researcher has used for conducting this research project. The next section highlights on the findings and analysis of the outcome that is obtained from the research.

In the past few years, it has been reflected that there has been ethical failures in the business enterprise. Globalization has resulted in huge competitive market, which is considered as one of the problems in the enhanced concern of ethics in the business. It has been evident from recent studies that fraud, corruption and bribery has been occurring in SME (Small and Medium enterprise) owing to absence of business ethics. Few researchers have found out that the SMEs have accounted for near about 99% of the establishments in service output, 27.6%  of fixed assets and 25.8% to the value added production and thereby employ near about 38.9% of the nation’s workforce. The basic ethical issue involves trust and integrity. Few business enterprises do not commit in treating their employees in fair manner. Thus, high trust level should exists between the management and employees in order to determine success of the enterprise.

The main purpose of the research study is to investigate the relationship between the work ethics and employee’s behaviour. The sub objectives of the research study is to explore how the work ethics impacts the employee’s behaviour within the hospitality sector of Australia.

Research Problem

The research study has huge significance in the hospitality industry of Australia as the enterprises can identify its ethical issues occurring within the workplace.

The scope of the research study is wide as it covers several areas such as different theories relating to work ethics and employees behaviour, significance of integrity, enterprise behaviour policies and professional accountability.

The hospitality industry in Australia have huge range of workers behaviour that usually occurs in the workplace. The employees in the hospitality sector of Australia directly or indirectly effects the service that they delivers in their respective enterprise. The Australia’s hospitality sector has been addressing the requirement to attract as well as retain best talent in the labour force. For several hotel organizations, positive workplace ethics is one of the basic aspects of the enterprise culture. According to Furnham, (2012), the behaviour of few employees can be positive and some can be negative, which in turn might influence the workplace environment. Few researchers also found out that positive behaviour of employees increases consumer service satisfaction. It has indicated by Crawshaw et al., (2012) that, the behaviour of employees and personalization mainly serve as one of the important predictors of customer satisfaction. Few researchers have also found out that there is direct connection among the employees efficiency in service and perceptions relating to customers service quality.

By reviewing literature, it has been seen that the employees friendly type behaviour has huge significance in the hotel enterprises as it facilitate in improving service outcomes as well as develops long – term relationships. Jhandir (2012) states that the extent of personal warmth that is displayed by the service workers towards the customers mainly relates to perceptions of service quality and consumer satisfaction. Shani et al., (2014) highlights the significance of contact workers behaviour during the service interactions in this hotel sector. Moreover, some researchers also indicates that the hotel enterprises mainly focuses on the personal connection between the customers and service providers. Schepers  et al, (2012) opines that the front – line workers behaviour must be positive as they are taken into account as the direct contract through service encounter between the customers and enterprises. Bello (2012) has mentioned that, as most of the hotel enterprises relies on their workers to deliver better service, the employees behaviour facilitates the enterprise to gain competitive advantage. Apart from this, the employee’s behaviour also enhances the image of the hotel industry and the extent of perceived as well as actual service quality. Yidong, & Xinxin, (2013) has examined that the customers usually experience negative as well as positive emotion of the employees during the delivery of service. It has also been found out that low skilled contact employees might not have the ability to cope with several emotional circumstances when the whole image of service enterprise is at stake. As emotions of employees are intangible, it becomes difficult for the hotel enterprise to control and this in turn have short- term as well as long – term impact on the perception of customers. Kozako,  Safin  & Rahim, A. R. A. (2013) states that negative behaviour of the workers usually generates stress and creates depression among them. This in turn also poses threats to the hotel industry as it leads to less productivity in work and as a result drastically effect the performance of employees. It has been evident from recent facts that negative employees behaviour has numerous consequences of losing customers, rising turnover rate and adverse impact on workers morality. However, it has been revealed that different behaviour of employees is likely to have effect on the perception of customer service quality.

Research Purpose, Aims and Objectives

Differences in behaviours and attitudes of employees in consumer- employee encounter causes varied decisions by the customers, thereby resulting in change in consumer satisfaction. It has been found out by some researchers that the employee’s responses or behaviours is one of the critical procedure that creates consumer attribution. According to AlBattat & Som, (2013), their findings also highlight that the factors for dissatisfaction or dissatisfaction of customers can be divided into three different groups, which includes- employees response towards consumer requirement and requests, unprompted employees actions and employees behaviour during failure of service delivery system. Few recent facts reveals that the consumers were mainly satisfied by the behaviours from third group, which was followed by the second group. On the contrary, dissatisfaction behaviour was found basically in first group that was followed by second and third group. Mokaya et al., (2013) pointed out that there are four different categories of workers behaviour that are responsible for success of hotel industry, such as- responses to failures, responses to requests, reactions to few problematic consumers and unprompted actions. Furnham, (2012) cites that the environment of workplace mainly influence the performance as well as behaviour of employees, which in turn influences the customers experience. Furthermore, the researchers also found out that workplace ethics is dependent on employee’s behaviour, which in turn impacts the success of hotel enterprise.

Resick et al., (2013) opines that ethical norms in workplace influences the employees behaviour in the enterprise environment. The researchers have examined that work ethics is one of the good predictor of employee’s behaviour and performance. As per () there is direct relationship between workplace ethical climate and employees behaviour. Few researchers have demonstrated that ethical climate of the enterprise usually drives its values as well as motivates the behaviour of employees. This in turn in impacts the ethics of the employees working in the enterprise. Besides this, researchers have also found out that the employees prefer working in those enterprise that have positive work ethical climate.  The management of the enterprise faces several difficulties while integrating ethical principles within the business.

Awadh & Alyahya, (2013) has explained that the enterprise culture generally sets standards for determining difference between good or bad decision changing with employees behaviour. Several researchers have found out that work ethics effect the managerial decision procedure in different ways. As the managers of the hotel industry are generally assigned to several duties, work ethics play huge role in managerial decision making. In fact, the performance analysis of employees is one of the main duties played by the managers of the hotel industry. However, this managerial decision making procedure is basically affected by the work ethics. Discipline is also considered as one of the vital aspect of managerial decision making procedure that is influenced by work ethics. If the managers do not take into account discipline, then it might lead to bad circumstances within the enterprise. Therefore, this managerial decision making procedure within the hospitality industry is generally affected ethically owing to lack of discipline. Recent facts also reflects that the managers of few hotels are challenged each day for solving ethical issues that have been arising in the industry. However, managing work ethics is one of the serious businesses for the hospitality professionals since they are liable to communicate enterprise standards and provide ethical leadership.

Significance of the Research

Knani (2014) states that the employees of hospitality industry require high ethical consciousness in comparison with other industries and stronger ability for judging ethical problems based on the principles of enterprise. Good work ethics thereby positively influences the behaviour of employees within the hospitality industry. Now- a- days the hotel industry promotes as well as foster ethical working environment, which in turn impacts behaviour of employees. In addition to this, numerous studies in hospitality industry have also revealed that there is positive relationship between work ethics in an enterprise and job satisfaction of employees.

Bello (2012) cites that the employees ethical behaviour gets affected through ethical business surrounding in hotel industry. At present, the managers of the hotel industry try to carry out business in ethical way owing to increasing need for hotels. Few studies reflects that market forces within hospitality industry of Australia provides financial incentives for ethical work behaviour. In fact, issues relating to work ethics adversely impacts the reputation of the hotel in the marketplace. The work ethics within the enterprise enhances its values and also motivates anticipated employees behaviours.

The theories discussed below highlights on the relation between the work ethics and workers behaviour.

Behavioural management theory

Behavioural management theory focuses on the independent variable which is employee’s behaviour in the hotel sector of Australia. The theory is also called as human relations movement as it addresses human work dimension. This theory depends on the belief that the managers of the enterprise better understand human aspect to employees as well as treat them as one of the vital assets to achieve the target. The management of the organizations takes special interest in employees and makes them feel that they are part of special group. Behavioural theorists contributed to employee’s behaviour at work that includes- expectations, motivation, group dynamics, enhanced productivity and conflict. Numerous experiments as well as individuals have huge contribution in this theory. One conclusion from the Hawthrone studies reflects that human relations and social requirement of employees are the vital aspects of management of enterprise. This human motivation principle facilitated to revolutionize theories as well as different practices of business management. Furthermore, this Hawthrone studies reflect that the management of enterprise expressing interest on employees personal well- being and rewarding them for the work makes the employees feel motivated to work even harder.

According to the equity theory, an individual is mainly concerned about different ways by which rewards are distributed in the group. Adam’s equity theory is based on the idea that the individuals are encouraged by fairness (Bell & Martin, 2012). Moreover, he suggested that higher an individual’s equity perception, the more the individual’s becomes motivated. If any individual perceives unfair environment, they becomes demotivated. This theory explains about the dependent variable that is work ethics within the hotel industry of Australia. This theory shows that inequities harm motivation of workers. The employees of the enterprise who feel that they are getting inequitable treatment with respect to others will be encouraged emotionally in order to gain equity. However, when this inequities persist, the employees might show their work ethics behaviour given on the following way.

• They might provide less time and show less interest in doing work
• They might become resistant which means act out on other problems
• They become highly competitive and thus focuses on decreasing output of others
• They might quit their jobs
• They might demand better rewards for their job

Scope of the Report

The managers of the hotel industry is however required to ensure that adverse repercussions are avoided from equity comparisons during allocation of rewards. Therefore, it is necessary for the managers of hotel to effectively integrate business ethics within the enterprise.

Relationship between equity theory and behavioural management theory

  The relationship between these two theories is the effect of work ethics on employee’s behaviour within the hotel industry of Australia. This reflects that work ethics of an enterprise helps to shape behaviour of staffs. Proper work ethics helps to guide the employees to behave properly in every situation. However, good behaviour of the employees enhances the reputation of the business and ensures long term success of business.

Policies reflecting relationship between work ethics and employee’s behaviour

Behavioural policies of an enterprise- The enterprise usually specifies acceptable behaviour while hiring the workers. Guidelines of behaviour mainly addresses few topics such as- work attire, harassment. The companies provide verbal or written warnings to those employees who do not follow certain code of conduct. (

Significance of an integrity- One of the vital component of work ethics and employees behaviour is integrity. The employees with integrity usually avoid gossip a well as sneakiness while doing job (Crawshaw. et al., 2013).

Commitment-Ethical guidelines in workplace usually place huge amount of significance on the dedication. Even though processing vital skills is essential, good work ethic as well as positive attitude towards job might carry long way.

Professional Accountability-Another main factor that is included in work ethics and behaviour is taking responsibility for the actions. This means that arriving on specific time, giving huge effort for job.

Involved in a team- One of the important aspects of work ethics is working collaboratively, which includes – peers, supervisors. In several cases, the team members might face termination or demotion. On the contrary, the employees working well can advance on this aspect and hence this outweighs performance.

In this particular research study, the researcher has conducted qualitative research methods in order to explore about the impact of work ethics on employees behaviour within hotel sector in Australia.

Research design is classified into three types- explanatory, descriptive and exploratory. Exploratory research design aids to explore particular circumstances in order to fulfil research study objectives (Maxwell, 2012). Explanatory research design portrays an attempt of linking individual thoughts to understand specific situation. Descriptive research design assess extra information gathered for the study.

Independent Variable- Employees Behaviour

In this research study, descriptive research design is used for investigating effect of workplace ethics on behaviour of employees in Australia’s hotel industry (Mokaya et al., 2013). Furthermore, this research design is adopted as it makes use of the secondary data as well as analysis of previous facts. Using this research design has facilitated the researcher in conducting investigation of known facts and drawing conclusions by conducting thematic analysis.

Research Philosophy is of three kinds- interpretivism, realism and positivism. Positivism refers to positive facts that is received from empirical evidences. Interpretivism relates to the social approach which depends on social science and is opposite to positivism philosophy. This philosophy is used by adopting qualitative research. Realism philosophy depends upon the assumption of scientific approach to knowledge development activity.

In this research study, interpretivism research philosophy is used for investigating the research topic that aligns with effect of work ethics on employee’s behaviour. As qualitative research method is used for this study, interpretivism philosophy is adopted.

There are two kinds of research approach – deductive and inductive. Deductive approach is basically concerned with developing hypothesis on the basis of existing theories and designing research strategy to test this hypothesis. On the other hand, inductive approach formulates tentative hypothesis, investigates and develops conclusions.

In this research study, deductive approach is used as the researcher has focused on exploring the theory of workplace ethics and its effect on behaviour of employees (Sekaran & Bougie, 2016). This approach is used as it explores the known theory and test whether that theory is valid in the given situation. This approach is preferred as the availability of time is short and no specific risk is identified while doing the research study.

The sampling technique that is used for this study is making utilization of secondary data and thematic analysis in which data has been collected from published journal articles, websites and academic books.

There are two kinds of data collection method- primary and secondary. Primary data is collected from surveys, observations while secondary data is gathered from journal articles, websites, books and so on. In this research study, the researcher has used secondary data collection method.

The researcher has used qualitative data method through analysis of thematic data approach. Thematic analysis has been widely used for qualitative data method as it focuses on recognizing patterned meaning and across provided dataset (Taylor, Bogdan & DeVault,  2015). In this type of analysis, the researcher uses previous data from the valid sources and draws conclusions by justifying research objectives.

The researcher has maintained confidentiality of data that has been gathered from websites, journal articles and books. As all the data are collected from secondary sources, the researcher has collected data from reliable and valid sources. Moreover, no outdates data has been used while conducting the research study.

The research study ventures in the area about how the work ethics impacts their behaviour within the enterprise. The qualitative research method has been adopted in this research study since with this framework, different aspects of workplace ethics influencing workers behaviour within the hotel industry in Australia has been taken into account (Taylor, Bogdan & DeVault, 2015). The information gathered are analysed as well as interpreted under numerous themes. However, this aids the researcher to attain several information about how the hotels are focusing on improving work ethics so that it can have positive effect on the employee’s behaviour.

Various demographics are involved while collecting the data and analysing the procedure. In fact, while conducting the thematic analysis the researcher has considered different themes for various datasets.

Unlike most of the sector, the hotel industry is generally susceptible to unethical behaviour as well as practices. Due to this, the managers of the hotel industry in Australia are focusing on improving the work ethics within the enterprise. Work ethics have huge significance within the hotel industry in Australia due to following reasons.

Firstly, it contributes to huge productivity by reducing total cost of transactions in business

Secondly, it helps to establish customer’s loyalty

Thirdly, it aids to create trust between the employees and suppliers

Fourthly, it aids to maintain social capital

Fifthly, it improves the behaviour of the employees

The hotel sector in Australia mainly presents several opportunities for some unethical practices to occur and thus the employees are usually placed in ethically as well as morally ambiguous situations. There are numerous ways in which these situations arise, which in turn effects the behaviour of employees. These problems involve- mistreatment of others, racism, misleading information within the enterprise and so on. However, proper work ethics supports the growth of employees by helping them face reality and behave in a proper way during turbulent times. In addition to this, the employees also feel confident as they deal with the situation that comes in their way(Kang et al., 2012) Apart from this, the hotel industry in Australia also tries to implement work ethical programs in order to detect ethical problems as well as violations and help the employees address the issue in proper way. These ethical programs also facilitates to recognize preferred values as well as ensure that employees behaviours are aligned to these values. This effort involves recording of values, implementing policies as well as procedures for aligning employees behaviours with these preferred values and also training the personnel about these policies. Thus, fostering good work ethics help the hotels in Australia to maintain reputation in market and promote strong public image.

Several issues relating to work ethics in the hotel industry highlights the challenges which arise in cash- based and people intensive sector. Few recent studies reflect that inside theft within the hotel industry in Australia is quite common. The researchers have found out that this hotel industry in Australia is susceptible to dishonesty especially by the employees who are underpaid. It has been observed by these researchers that frequent transactions of cash along with part- time employment mainly present the employees with several tempting opportunities. However, working hours are too long and the events occurring within the sector are unpredictable. In addition to this, while managers of the hotel industry attempt in establishing high ethical standards in the hotels, this information does not always reach to the front- line employees. In fact, poor training of staffs also attributes to lower ethical standards. Therefore, improved training of employees and implementation of policies relating to work ethics decreases problems (Jhandir, 2012). Apart from this, few researchers have found out that in some situation the employees working in the hotel industry lack civility owing to issues relating to workplace ethics. This means that the employees of such hotels do not respect one another as individuals  treats each other with huge disrespect that involves- snipping, conflicts and so on. Rifts were mainly frequent as it often needs intervention from the human resource management. In fact, basic civility usually lacks in some hotels, especially among the hourly workers. Also, huge pressure of part- time employment and temporary hours also impacts this group. Moreover, lack of civility along with language barriers creates tension as well as inevitable partioning since minorities stick to ethnic groups where they feel comfortable. As a result of which, this creates unethical behaviour of employees working in these hotels. The researchers have found out different perceptions of customers regarding behaviour of employees mainly front – line employees of hotel industry. () identifies four different dimensions of the customers perceptions of front- line employees behaviour within hotel industry in Australia, which includes- guests property infringement, against work policies, unethical behaviour. Thus, these findings support with the fact that problems relating to work ethics adversely impacts the behaviour of employees working within this sector.

The general manager of the hotels within the hotels industry in Australia plays a vital role in managing work ethics and solve any kind of problems relating to this. They play the role in communicating enterprise standards as well as provide ethical leadership, which in turn positively influences the behaviour of employees. The general manager of hotels often faces challenge to make hard decisions while resolving workplace ethics issues. As a result, this leads to favouring of few employees over another and this in turn harms other employees. These employees now show their frustration in their behaviour and attitude, which again impacts the reputation of hotels. Previous studies also reflects that the general managers of the hotels are more concerned about solving ethical issues in order to improve employee’s behaviour towards their customers. The main reason behind this is that they mainly focuses on maximizing profit margin of the hotels by attracting large number of customers. Furthermore, it has also been evident from few studies that the general manager of few hotels adheres strict policies relating to work ethics in order to avoid any problems regarding employee’s behaviour with the customers.

When the employees believe that the workplace environment is ethically appropriate, the probability of their staying in the enterprise increases. This shows the requirement of workers for fairness as well as justice in the enterprise. It has been evident from recent facts that moral liability is one of the work ethical problems that occur within the hotel industry in Australia. Moral liability arises when the hotels violate expectations of stakeholders regarding ethical behaviour in the ways which put the business value at high risk. However, now-a-days the hotels usually implements work ethical codes in order to minimize the risk of unethical behaviour of employees within the enterprise. Recent studies reflect that the employees working within the hotel industry in Australia behave ethically due to adoption of ethical codes and principles. Few researchers have found out that some employees in hotels of Australia acquaints with ethical codes and thereby puts bigger effort as well as develop a climate of teamwork and interconnectedness feeling to accomplish collective task. As a result, this facilitates the managers of the hotels to solve difficult issues that they face every day as well as reduce the risk. In this way, the hotel industry in Australia manages risk and attains success in the competitive business environment. Some of the hotels in Australia rarely lay off its employees and keeps in employing new workers, so that the codes as well as practices relating to work ethics can be transferred from old employee to new employee. It has been evident from recent facts that these hotels survive longer in the marketplace as the employees gets committed as well as loyal to the enterprise. The employee’s positive behaviour owing to proper work ethics helps the enterprise to enhance profit margin and improve enterprise culture. Thus, it can be said that proper work ethics leads to positive behaviour of employees and enhances the financial performance of the hotels.

Most of the hotels operating in Australia adopts numerous ways to encourage good workplace ethics within the enterprise, so that the employees behave ethically during their work. The different ways by which the hotels in Australia adopts good work ethics involves- fair treatment, recognition, fair treatment among the workers, proper communication, transparency, policies of enterprise, training relating to work ethics, having action plan, constructive feedback, giving rewards to employees for better performance and so on . Implementation of these ways impacts the employee’s behaviour and attitude, which in turn results in delivering of high level of consumer service. Thus, this results in satisfaction of customers and higher customer retention. In addition to this, the employees also becomes loyal to the enterprise and reduces overall staff turnover. Some researchers have found out that the hotels in Australia that adopts these different ways to motivate work ethics results in higher profitability level and increase in business growth.

Based on the above research study, several recommendations as well as improvements regarding proper work ethics are provided to the hotels operating in Australia. This recommendations will help the hotels to positively influence the employee’s behaviour and create good culture in workplace.

Firstly, the management of hotel industry in Australia should provide training to the employees regarding work ethics so that they can understand the significance of it. The HR department of the hotel industry in Australia should also explain employees about the objectives of this training and the benefits that they can acquire from this. This work ethics training will also help the employees to behave in ethical way during their work.

Secondly, the management of the hotels should increase communication with their employees by attaining feedback from them for knowing about whether the work ethics influences their behaviour and training on work ethics results in better outcome.

Thirdly, the management of the hotels should fairly treat all their employees in order to influence their behaviour. They should offer rewards to all the employees in order to improve their performance as well as influence them to behave ethically during their work. These rewards can be in the form of incentives, promotion, gifts and so on.

Fourthly, the managers of the hotel; industry in Australia should implement proper work ethical principles and practices in order to positively influence the behaviour of employees.

Conclusion

Work ethics is mainly concerned with the behaviour of workers since they are mostly influenced by principles of work ethics in enterprise. It has been argued by several researchers that good work ethics in enterprise positively influences the employee’s behaviour and brings synergy in vital success domains of business. It has been evident from the above discussion that the employees prefer to work in that hotels that have positive work ethics. The hotel industry in Australia establishes healthy workplace environment by fostering work ethics awareness, practices in order to positively affect employees behaviour, decrease employees turnover, retain customers and enhance profit margin.

The above discussion also highlights hat implementation of principles relating to work ethics mostly contributes in fulfilling varied goals of the hotels as it suggests the employees to behave in ethical way. Moreover, it has been evident from the research that there are few hotels in Australia where poor work ethics still exists such as- illegal practices, theft, falsifying information, ignoring procedures as well as policies, lack of proper communication and so on. Due to this poor work ethics, it creates adverse impact on employees behaviour, undesirable work environment, stunts productivity, lesser privileges and so on. Apart from this, ethical behaviour of employees owing to proper work ethics improves the image of enterprise and thereby attracts large number of customers in the hotel.

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