Study Of Employee Satisfaction And Its Effect On Loyalty In The Hotel Industry

Background of the Study

Study of Employee satisfaction and its effect on loyalty in the hotel industry .

Background of the study

The competitive nature of the hotel industry in the recent times has been pressurizing the organizations to retain the efficient employees so that the services that are provided by them can help in gaining a competitive advantage. The international tourism hotels mostly rely on the quality of services that they provide to the customers for which the efficiency of the employees needs to be increased. However, the rate of growth in the hotel industry has decreased due to the high rate of turnover among the employees (Mokaya et al. 2013).

The satisfaction of the employees affects the loyalty of the employees towards the organization in a direct manner. The loyalty of the employee can be defined as the process through which various attitudes arise among the people and leads to certain behaviors. There are two dimensions in loyalty that is internal and external. The internal dimension is based on the components of emotion where the employer needs to have a proper understanding of the feelings and the problems that the employees are facing within the organization (Karatepe and Karadas 2015). The external dimension is the manner in which loyalty tries to manifest itself among the employees. This dimension of loyalty tends to change at a faster rate within the people. Loyalty and trust among the employees plays an important role in providing the development that is required to the employees so that they can work in an efficient manner. Apart from this, the relationship between organizational structure, leadership and culture that is present within the organization helps in building up the loyalty among the employees (Zopiatis, Constanti and Theocharous 2014).

Problem statement

The hotel industry is one of the major prospects that is being growing within the service sector. The government of most of the countries is determined in tapping out the potential resources that will help in the growth of the hotel industries. The hotel sector within the tourism industry is assisting the government so that it can help in understanding the potential of the industry within the economy. Most of the hotel organizations are facing difficulty in retaining the employees, as they are not being able to identify the important factors that will contribute towards increasing the loyalty of the employees within the same organization (Cheng et al. 2013).

Problem Statement

Rationale of the research

Most of the experts are of the view that most of the hotel organizations are spending hugely so that the employees can be seasoned and serve the organizations in a better way. The loss of the employees results in losing out the amount that has been spent on training them. This is due to the fact that recruiting new employees in the organization results in consumption of time and amount as well. In the recent times, it has been seen that most of the employees who are gaining experience within a particular organization are willing to change their organization sue to the better opportunities that they are getting in the new place (Yeh 2013). This has resulted in the loss of skilled workers in some of the hotel organizations. This research will focus mainly on highlighting the importance of rewards and development on the career so that it can help in increasing the loyalty among the employees.

Aim and objectives

The aims and objectives of this research will be as follows:

• To understand the relationship between development of career and loyalty of the employees
• To establish a relationship between the rewards system and employee loyalty

Research questions

            The questions for this research will be as follows:

• How does career development help in increasing employee loyalty?
• How does reward system increase employee loyalty within the organization?

Research hypothesis

The hypothesis for this research will be as follows:

H₀– Developing the career and proper rewards system does not help in increasing employee loyalty within the hotel industry

H₁– Developing the career and proper rewards system help in increasing employee loyalty within the hotel industry

Employee loyalty

It can be defined as the belief of the employees that they do not have any complaints regarding the work that they are doing in the present organization. The employers have to take in to account that the benefits and salaries that are being given to the employees has to be appropriate so that it can help in increasing the loyalty among the employees within the organization. This means that hiring new employees within the organization will result in a considerable expense, as the new employees need to be given proper training and their loyalty cannot be built up in a limited period of time (Bustamam, Teng and Abdullah 2014).  

The needs of the employees have to be understood so that it can help in increasing their loyalty towards the organization. An example of this would be that the employers need to satisfy the basic needs of the employees so that they do not face any problem and can contribute maximum towards the organization. The loyalty of the employees can be increased in some of the ways such as telecommuting helps in enhancing the loyalty of the employees, as the cost of travelling can be cut and help in establishing a balance between their work and life. The employers need to focus more on satisfying the lifestyle and human needs of the employees rather that focusing on health and financial needs (Amin et al. 2013).

Rationale of the Research

Rewards also play an important part in increasing the level of loyalty among the employees, as it acts as a motivational tool. The performance of the employees on an individual basis needs to be encouraged through a proper rewarding system so that it can help in achieving the goals that are present within the organization. The rewards that are given by the employers in the form of bonuses and commissions help the employees to increase their loyalty within the organization (Molina-Azorin et al. 2015).

Career development

Development in the career is one of the major factors that help in determining the loyalty among the employees. It means that the individual is performing in an excellent manner in achieving the goals of the organization and is also eligible for being promoted in the system. Developing the career of the employees can be done with the help of assessing the performance of the workers and the various training that they have received in completing their assigned jobs in a proper manner. An example of this would be the plans that are included in the policy of recruitment that helps in exchanging information regarding the organization before the employees are hired in the organization. This will help in understanding the objectives and the needs of the organization in a better manner by the employees (Jani and Han 2014).

Development of career is important, as it will help in retaining the employees within the organization along with the opportunities that they will get in moving ahead within the organization. The organization needs to understand the desire and needs of the employees so that it can enable them to grow within the organization failing which will lead to the resignation of them. Most of the organizations need to understand the importance of developing the career of the employees so that it can help them in being loyal towards the organization and work in an efficient manner to achieve the goals and objectives of the company (Park and Levy 2014).

Apart from this, there are problems in developing the career as well due to the planning mistakes that are done by the human resources department. Most of the human resources department in the hotel industry takes it for granted that the employees have the same intention and notions of joining the hospitality industry, which leads to a higher rate of turnover among the employees (Karatepe 2013).

Aim and Objectives

Compensation and Rewards

Compensation is a term that is used to maintain a healthy standard of employees within the work place. Most of the employees are dependent mainly on salaries and the extra benefits that they get from the work place help them in increasing their income as well. It helps the employers in influencing their decisions of doing the business at a competitive price so that the employees can get a better rate of return within the work place. Compensation acts as a link between the rewards that are offered by the company so that the employees are attracted towards the firm and are encouraged in continuing within the same organization (Kang, Gatling and Kim 2015).

The rewards that are given to the employees play an important role in attracting the employees and retaining them within the hotel industry. The daily interactions with the employees make them feel appreciated for the contributions that they give within the hotel organization. This helps in creating an environment of motivation for the employees, as their unique abilities help in increasing the morale within the work place (Jani and Han 2014). The reward system for the employees on a monthly basis helps them in striving to achieve a greater level of productivity, which will help them in getting recognized within the organization. This also helps in providing motivation to the other employees who cannot achieve the target. The reward system needs to be specific so that the employees have a better knowledge of it and can help in achieving it by increasing their level of productivity within the firm (Lin, Wong and Ho 2013).

Job Security

It can be defined as the likeliness of the employees to be staying in a particular job till their retirement and the feeling that the job that they do within the organization is according to their level of knowledge and skills. It is also the feeling of the employee that they would continue their job within the same organization for a prolonged period. To put it simply, it is a form of continued employment within the same occupation under the same employer (Robinson et al. 2014).

The hotel industries need to hire employees based on their level of knowledge and skills so that it can help them in serving the organization in a better manner. The policies that will be made needs to be transparent so that before the people are hired in the system they can understand the requirement of the job process within the organization. This will help the organization in increasing the loyalty among the employees and the increase in the level of output as well (Karatepe et al. 2014).

Research Questions

Introduction

The research methods available for the process allow the researcher in gathering the data in a proper manner that is relevant to the topic chosen for the research process. The use of the right method helps in influencing the outcome quality for the research. Moreover, the correct research methods will enable the researcher in collecting the proper information that is according to the chosen topic.

Research Philosophy

Research philosophy is the method through which the information that is needed can be done in an effective manner for the process of the research. The researcher will be able to collect the relevant and authentic information so that the research can be completed in a proper manner. In the positivism philosophy, the information that is collected is based on facts for the researcher, which helps in giving a proper outcome to the research process. In the interpretivism philosophy, the information that is constructed in a social way are collected by the researcher along with the ones that are significant to the topic (Panneerselvam 2014). In the realism philosophy, the researcher can gather the information that are based on facts as well as the data that is constructed in a social manner. This particular process of research will use the positivism philosophy that will allow the researcher in collecting the information that are authentic and factual in nature (Gast and Ledford 2014).

Research Approach

This methodological tool helps the researcher in increasing their knowledge and skills that is regarding the topic, which has been used for the research. This tool depends primarily on the variables that have been taken for the research topic to be completed in a successful manner.  There are mainly two types of approaches that is inductive and deductive. The inductive approach allows the researcher in creating new theories along with models that will help the research to be understood in a better way (Neuman and Robson 2014). The new theories that will be formed will provide information regarding the variables that are used in the research. The deductive type of approach on the other hand, is where the researcher will be using the existing models and theories so that it can be related to the topic. This will help the researcher in having a better understanding of the topic and use the relevant models as well. This particular research will be using the deductive approach that will enable the researcher in using the theories and models that are already present (Tarone, Gass and Cohen 2013).

Research Hypothesis

Research Design

The research design helps the researcher in gaining a better knowledge regarding the topic that has been taken up in the research, which will allow him in to increase the knowledge regarding the variables used in the process of research. The research design is mainly of three types namely exploratory, descriptive and explanatory.  The design that is explanatory in nature helps in identifying the relationship among the different variables that is present in the research process (Bauer 2014). The researcher is also able to create a link between the variables. The exploratory type of design allows the researcher in gaining knowledge about the background of the research. The design that is descriptive is based on the actual purpose on which the research is being done. This research process will be using the descriptive design that will help the researcher in getting a better understanding of the topic. The researcher will also be able to use objectives and questions in the research so that it can be completed in an efficient manner (Tuohy et al. 2013).

Research methods

Quantitative method

The objectives that are taken up in the research are mostly analyzed using the quantitative method of research process. The data collected through this process will allow the calculation of the events to be done by representing it in a statistical manner so that the analysis can be done in a proper way. It allows the researcher in using statistical figures and charts for the analysis of the data that will help in measuring the research variables in a proper manner. The researcher is also able to create hypothesis in the research process so that it can help him in conducting and authenticating the research in an empirical way (Reynolds et al. 2014).

Qualitative method

The research that is based on qualitative method results in recording the observations and happenings when the process of interview is being conducted by the researcher. The responses of the interviewers can be recorded in a detailed way that will help in providing information that is based on the topic of the research. The researcher will also be able to gather the information in a detailed manner, as the behavior of the participants can be recorded as well (Choy 2014).

This particular method helps the researcher in collecting the data that is not biased and the reliability level is also very strong. The information that is collected in this method is specific as well. However, sometimes the process is unreliable due to the fact that the time taken in the process of interview is high and the important people may not be available for a certain time period as well (Lushey and Munro 2015).

Literature Review

Data Collection

This step is very important, as it helps in the collection of data from the participants that have been taken up by the researcher. The researcher needs to gather the primary and secondary data that is based on the topic. The secondary data helps the researcher in building up the information in a theoretical manner so that the review of literature can be done properly. Books and journal articles will allow the researcher in using the secondary information in an efficient manner. The quantitative method can be used when the data can be gathered with the help of interviews and surveys (Bauer 2014).

Data Analysis

This methodological tool allows the researcher in deciding the analysis of the data to be done by using the appropriate method. The information that is provided by the participants for the research can be converted to specific outputs with the help of this method. There are many ways in which the data can be analyzed such as thematic and coding analysis for the secondary data.  The primary data can be analyzed with the help of standard deviation, mean, median and mode and other tools as well (Neuman and Robson 2014).

Sample selection

The primary data that will be collected by the researcher needs to take in to account the sample as well from where the information needs to be collected. The sample has to be decided by the researcher so that the surveys or the interviews that will be conducted can be gathered in a proper manner. This research will be taking up 50 employees from a reputed hotel so that their responses can be gathered with the help of surveys where as 10 managers will also be interviewed so that the topic can be understood in a proper manner (Lushey and Munro 2015).

Ethical consideration

The researcher will follow all the guidelines that will help him in completing the research in an ethical manner. The participants that will be chosen for the interview and survey will not be pressurized that may lead to a deviation in the outcome of the research process. The privacy and the data protection act will be abided by the researcher so that the information that are gathered are not used for commercial purposes (Panneerselvam 2014).

Limitations

The researcher had limited time and budget that affected the overall process of the research. The budget constraint prevented the researcher to explore some of the important articles that were available and time was another factor, as it had to be completed within a limited period (Tuohy et al. 2013).

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