INTRODUCTION
Research background
The tourism industry is a vital component of Vietnam's economic structure, with over six million foreign travelers visiting in 2012, marking a 19.1% increase from the previous year This surge in tourism has significantly boosted the hotel industry, which attracted nearly $11 billion in investment through 247 projects by 2009.
The hotel industry, ranking third after industrial processing and manufacturing in terms of labor demand, relies heavily on human interaction to deliver unique services This sector experiences significant fluctuations in labor needs due to its seasonal nature; peak periods require a substantial workforce operating at high productivity, while low seasons lead to a reduced number of permanent employees This inconsistency results in an unstable labor force, often demotivating part-time staff and adversely affecting the performance of full-time workers Additionally, hotel employees, particularly servers, must cater to a diverse clientele from various cultural backgrounds, necessitating a deep understanding of customer needs to ensure quality service Consequently, this creates a high-pressure environment that demands specialization, discipline, and a commitment to accuracy and consistency from hotel staff.
High staff turnover in the hotel industry is a prevalent and costly issue, often driven by factors such as low wages, unsociable working hours, monotonous tasks, and limited career advancement opportunities Employees are more likely to leave when they feel demotivated and pressured by management, highlighting the need for effective leadership and support to retain talent.
2000; Walsh and Taylor, 2007) An organization will be forced to invest million dollars in recruiting, orientating, training, etc if they own an unstable workforce
Maintaining continuity in customer relationships is crucial for fostering customer loyalty, as its absence can lead to management stress, increased conflicts, and reduced efficiency, hindering a company's competitiveness in the marketplace Therefore, implementing effective policies to motivate and retain high-performing employees is essential, as they are key to creating unique customer experiences and relationships A stable workforce provides a significant competitive edge, as it strengthens customer relationships by ensuring dependability through consistent product knowledge, industry experience, and proven performance (Kreisman, 2002).
Numerous studies across various countries have identified key factors influencing employee motivation in the hotel industry As the hotel sector in Vietnam rapidly expands, understanding how to attract and retain high-performing staff becomes essential for enhancing competitive advantage This research aims to explore effective strategies for fostering motivation within the hotel industry in Vietnam.
Research questions
1.What factors affecting to employees’ motivation in hotel industry in Ho Chi Minh City?
2 How does each factor affect to employee’s motivation?
Research objectives
The goal of this research are as below
- To determine factors affecting employees’ motivation in hotel industry in Ho Chi Minh city
- To evaluate how each factor affects to working motivation
- To determine the impact of personal characteristics such as: gender, age, education level, experience, contract type and hotel standards to employee motivation.
Scope of this study
This study will focus on hotel businesses in Ho Chi Minh City, encompassing both 4 and 5-star hotels as well as those rated below 4 stars Interviews will be conducted with employees from various departments, including food and beverage, front office, finance, and human resources.
Research contribution
This research enhances the measurement system for assessing employee motivation levels in the hotel industry It equips hotel managers with valuable insights for effective decision-making in human resource management, ultimately fostering improved productivity and heightened employee motivation Additionally, the findings contribute to the broader field of human resources management research, particularly within the hotel sector.
Research structure
This study includes four chapters after chapter 1 Introduction, as below:
Chapter 2 – Literature review : this chapter includes Definition of motivation, theories of motivation, previous researches in hospitality industry and identifying significant motivational factors in this paper
Chapter 3 – Research method: this chapter consists research process, measurement scale, the pilot test and the main research which was conducted
Chapter 4 – Data analysis: this chapter describes how each measurement scale was evaluated and the result of testing hypothesis It consists of sample description, measurement scale data analysis, regression analysis and evaluating the impact of personal characteristic on employee motivation
Chapter 5 – Conclusion and Recommendation: this chapter presents brief description about research findings and some of implications has mentioned At the end, research limitation and recommendations for future research have presented as well.
LITERATURE REVIEW
Definition of Motivation
Motivation is defined as “a process that starts with a physiological deficiency or need that activates a behavior or a drive that is aimed at a goal incentive” (Luthans,
Motivation is defined as an internal state that drives individuals to engage in specific behaviors (Spector, 2003) Pinder (1998) elaborates on work motivation, describing it as a combination of internal and external forces that initiate and shape work-related behavior, influencing its form, direction, intensity, and duration This definition highlights the impact of environmental factors, such as organizational reward systems and the nature of the work, alongside personal factors like individual needs and motives, on work-related actions.
Motivation is often defined as the driving force behind employee behavior, stemming from unmet needs influenced by both intrinsic and extrinsic factors These factors compel individuals to engage in specific actions aimed at achieving their goals and fulfilling their needs.
The psychology of motivation is tremendously complex (Herzberg, 1987) Theories about motivation were developed and became popularly in practice as below.
Motivation theories
Maslow’s hierarchy of needs, introduced by Abraham Maslow in his 1943 paper “A Theory of Human Motivation,” outlines five essential sets of goals: physiological, safety, love, esteem, and self-actualization This theory offers valuable insights for managers and organizational leaders, emphasizing the importance of motivating employees by addressing their emerging or unmet needs Implementing support programs and forming focus groups can also help employees manage stress, particularly during challenging times.
In his 1961 publication "The Achieving Society," McClelland introduced the theory of needs, emphasizing three primary motivations: achievement, power, and affiliation The need for achievement is characterized by the drive to excel and succeed against set standards The power need involves influencing others' behaviors, while the affiliation need reflects a desire for close interpersonal relationships and social interactions McClelland argued that individuals with a strong need for achievement are more likely to become successful entrepreneurs, as they thrive in environments that foster influence, coaching, and collaboration.
The Two-Factor Theory, also known as Herzberg's Motivation-Hygiene Theory, posits that workplace factors lead to job satisfaction and dissatisfaction independently Developed by psychologist Frederick Herzberg in 1959, this theory highlights that certain elements contribute to employee contentment, while a different set of elements results in dissatisfaction.
- Motivators (satisfaction): five factors stood out as strong determiners of job satisfaction:
- Hygiene factors (dissatisfaction): the determinants of job dissatisfaction were found to be:
Herzberg's theory posits that the elements contributing to job satisfaction are fundamentally different from those causing job dissatisfaction He identified hygiene factors—such as quality of supervision, salary, company policies, working conditions, interpersonal relationships, and job security—that, when adequately addressed, prevent dissatisfaction but do not necessarily enhance satisfaction.
To effectively motivate employees, organizations should focus on factors related to the job itself and its direct outcomes, as proposed by Herzberg Key elements such as promotional opportunities, personal growth, recognition, responsibility, and achievement are intrinsically rewarding and can significantly enhance job satisfaction.
Clayton Alderfer reworked Maslow’s Need Hierarchy to align it more closely with empirical research Alderfer’s theory is aslo called ERG theory – Existence, Relatedness and Growth
Existence refers to our concern with basic material existence requirements; what Maslow called physiological and safety needs
Relatedness refers to the desire we have for maintaining interpersonal relationships; similar to Maslow’s social/love need, and the external component of his esteem need
Growth refers to an intrinsic desire for personal development; the intrinsic component of Maslow’s esteem need, and self-actualization
Alderfer’s ERG theory contrasts with Maslow’s Need Hierarchy by allowing for multiple needs to be active simultaneously, rather than adhering to a strict progression where lower needs must be fully satisfied before addressing higher ones.
The equity theory of motivation posits that individuals are driven to maintain a balance between their perceived inputs and rewards According to Adams (1965), expectations of equity are shaped through socialization and comparisons with others When employees feel they are treated unfairly, they may respond in various ways, such as reducing their work output, seeking higher salaries, or pursuing more enjoyable tasks Additionally, employees might choose to withdraw from the situation entirely by quitting their job and looking for new employment opportunities.
Expectancy Theory, introduced by Victor H Vroom in 1964, posits that individuals are motivated to choose specific behaviors based on their expectations of the outcomes According to Vroom, motivation involves a decision-making process where individuals assess alternative voluntary activities to determine which will yield the most favorable results This decision-making is influenced by three key components: Valence, Instrumentality, and Expectancy, which together guide and shape behavior by aligning expected outcomes with desired results.
Theory X and Theory Y are theories of human motivation created and developed by Douglas McGregor in the 1960s They describe two contrasting models of workforce motivation
- Theory X workers could be described as follows:
Individuals who dislike working and avoid it where possible
Individuals, who lack ambition, dislike responsibility and prefer to be led
The management implications for theory X workers were that, to achieve organizational objectives, a business would need to impose a management system of coercion, control and punishment
- Theory Y workers were characterized by McGregor as:
Consider effort at work as just like rest or play
Ordinary people who do not dislike work Depending on the working conditions, work could be considered a source of satisfaction or punishment
To effectively manage Theory X workers, organizations should focus on implementing diverse rewards as a primary motivator to meet their objectives In contrast, the challenge for managing Theory Y workers lies in fostering a supportive work environment that encourages them to showcase and enhance their skills and abilities.
Edwin Locke (1968) emphasized that employees are driven by clear goals and constructive feedback In 1990, Locke and Gary Latham further explored this concept in their influential publication, “A Theory of Goal Setting and Task Performance,” highlighting that effective motivation through goal setting relies on five key principles.
The SMART acronym highlights five key characteristics of Goal Setting theory, which is extensively utilized in organizations Goals are clarified by ensuring they are Specific, Measurable, and Time-bound Additionally, goals must be Achievable and Relevant to present a challenge Commitment to these goals is strengthened when they are Agreed upon and Realistic, fostering a sense of ownership Lastly, providing Feedback is essential, as it is facilitated through measurable outcomes.
The Job Characteristics Model (JCM), developed by Hackman and Oldham, aims to enhance employee motivation through effective job design It establishes connections among three categories of variables that influence job satisfaction and performance.
They have identified that any job can be described in terms of below key job characteristics:
- Skill Variety: a degree to which a job requires different skills and talents to complete a number of different activities
- Task Indentify: the dimension refers to the completion of a whole and identifiable piece of work versus a partial task as part of larger piece of work
- Task Significance: is the impact of the task upon the lives or work of others
- Autonomy: is the degree of independence or freedom allowed to complete a job
- Task feedback: individually obtaining direct and clear feedback about the effectiveness of the individual carrying out the work activities
- Dealing with others: the extent to which the job involves working closely with other people
There are some strategies in job design in order to increase work motivation, such as: Job enlargement, Job enrichment, Job rotation, work at home or flexible working hours, etc
Research on motivation has identified various factors through different approaches However, in practice, employers often rely on monetary and non-monetary incentives as straightforward methods to motivate their employees.
Previous researches about motivation in hospitality industry and identifying
This research examines various motivation theories and their application in both general and hotel sector studies to identify the key factors influencing employee motivation in specific contexts The analysis reveals four recurring motivational factors that will serve as the foundation for hypotheses aimed at assessing their impact on employee motivation in Ho Chi Minh City.
Table 2.2 Summary of factors affecting to employees’ motivation in hotel industry
1 Management Barbara J Kreiman (2002); Buckingham and Coffman
(1999); Charl Van Wyk (2011); Sunil Ramlall (2004)
2 Working conditions Barbara J Kreiman (2002); Buckingham and Coffman
(1999); Charl Van Wyk (2011); Anastasios Zopiatis and Panikkos Constanti (2007); Boondarig Ronra and Manat Chasisawat (2010); Darrn Lee-Ross (1998); Terry Lam et al (2001)
3 Recognition Buckingham and Coffman (1999); Anastasios Zopiatis and
Panikkos Constanti (2007); Elisa Moncarz et al (2009)
4 Development Buckingham and Coffman (1999); Charl Van Wyk (2011);
Elisa Moncarz et al (2009); Sunil Ramlall (2004)
In her 2002 paper, Barbara J Kreiman identifies two key groups of factors influencing employee motivation, commitment, and retention: individual concepts, which include needs, values, beliefs, knowledge, skills, and interpersonal style, and job context factors, such as management, rewards, organizational environment, tools, and atmosphere She emphasizes the critical role of managerial control in enhancing employee satisfaction and commitment, highlighting the importance of recognition, feedback, opportunities for growth, fair compensation, and respect for individual competencies Supporting this view, Buckingham and Coffman (1999) stress that effective communication and positive feedback from managers are essential for developing employees' strengths and addressing weaknesses Research by various authors, including Kaye and Jordan-Evans (1999) and Kreisman (2002), reveals that poor relationships between managers and employees are a leading cause of employee turnover, underscoring the significant impact of management practices on employee motivation and organizational commitment.
According to Adam’s equity theory, Hellriegel and Slocum (2007) and Coetsee
In 2003, it was emphasized that managers should prioritize fair treatment of their staff and foster open communication regarding employee contributions to prevent dissatisfaction The manager's role is crucial in Adam's equity theory, acting as a moderator between individual efforts and goals through recognition If a manager fails to acknowledge an employee's efforts, it may lead to decreased motivation or even resignation.
Locke and Latham's goal-setting theory highlights the crucial role of managers in motivating employees through effective goal-setting According to Borkowski (2009), while the concept of goal-setting may seem straightforward, it demands meticulous planning and ongoing monitoring by managers Additionally, providing timely positive feedback and coaching is essential for encouraging employees to work towards their specific goals.
From above literatures, management was supposed to affect to employee’s motivation So, the first hypothesis is:
H1: Management positively affects to employees’ motivation
Working conditions play a crucial role in employee motivation, as outlined in Maslow's hierarchy of needs While Herzberg's theory categorizes working conditions primarily as a hygiene factor, numerous studies in the hotel industry suggest that they can also serve as a motivational factor This paper explores the dual nature of working conditions, examining their impact on employee effectiveness and motivation.
Darren Lee-Ross (1998), referencing Byrne (1986), highlights the connection between motivation and working conditions, suggesting that employees who enjoy their work environment are more motivated and less likely to leave their jobs (DeMicco and Reid, 1988; Vroom and Deci, 1970) To enhance working conditions in the hotel industry, Lee-Ross advocates for the implementation of the Job Diagnostic Survey, derived from Hackman and Oldham's (1980) Job Characteristics Model By utilizing a simplified 21-question version of the survey instead of the original 87 questions, managers can create job profiles for each department If any Core Job Dimension scores low, managers can take
According to Terry Lam et al (2001), a study on managerial job satisfaction in Hong Kong's Chinese restaurants identifies the work environment and the nature of the job as key predictors of overall job satisfaction A positive work environment is characterized by harmonious relationships among colleagues, clear human resource policies, and opportunities for employee development The study emphasizes the importance of granting line employees and assistant managers a high degree of autonomy, empowering them to make decisions regarding restaurant operations, customer interactions, and collaboration with colleagues This autonomy encourages innovative approaches to better meet customer needs.
Kadasamy and Ancheri (2009) highlighted the challenge of motivating employees to remain in their jobs by improving working conditions to reduce turnover (Yu, 1999) Their research on the quality of work-life (QWL) in the hotel sector identified eight key dimensions: job characteristics, person-job fit, company image, HR policies, physical working conditions, work-life balance, work group relationships, and customer interactions.
Goal-setting is an essential aspect of job content that shapes and reinforces employee efforts by providing clear objectives to strive for within a specified timeline When employees focus on specific goals, they are more motivated to direct their efforts towards achieving them, ultimately enhancing their productivity and performance (Nel et al., 2004; Daft and Marcic, 2009).
From above studies which were conducted before, the second hypothesis in this study as follow:
H2: Working conditions positively affect to employee’s motivation
Research indicates that reward and recognition significantly impact employee motivation, aligning with Maslow's hierarchy of needs, where recognition fulfills "esteem needs." Hertzberg (1987) identifies recognition as a key factor in job satisfaction and extrinsic motivation, alongside achievement, responsibility, and feedback (Nel et al., 2004) Extrinsic rewards can be financial, such as bonuses and salary increases, or non-financial, including praise in meetings Kreitner & Kinicki (2008) highlight the importance of equitable recognition, noting that perceived inequity can lead to demotivation According to Buckingham and Coffman (1999), feeling unappreciated is a primary reason employees leave their organizations Recognition can take various forms, including financial incentives, training, and promotion opportunities.
So, with its necessary of recognition in motivate employee, the third hypothesis is:
H3: Recognition positively affect to employee’s motivation
Opportunities to develop, improve skills and career is of the most important reason employees choose to stay or left an organization (Buckingham and Coffman, 1999)
So, it is very important in human resource practices of employees development
Development involves acquiring skills and utilizing various learning methods that benefit both employees and organizations (Simonsen, 1997) It should not only be encouraged but also accompanied by challenges, new learning opportunities, and tasks that enhance skill improvement and contribute to organizational success Examples include training, cross-training, job advancement, and offering a diverse range of knowledge and skills.
To enhance employee skills and job satisfaction in the hotel sector, it is essential to design jobs that promote skill variety, autonomy, and feedback (Lee-Ross, 1998) Cross-training is widely encouraged among hotel employees to improve their competencies and operational knowledge Regular training sessions reinforce operational standards and introduce new products or services, proving to be a valuable investment, as evidence shows a strong correlation between training activities, productivity, and employee retention (Moncarz et al., 2009) Furthermore, effective human resource practices that focus on developing talent and fostering teamwork significantly boost employee productivity and customer satisfaction (Moncarz et al., 2009; Youndt et al., 1996) By prioritizing the training and development of existing employees rather than incurring costs on new hires, hotels can enhance employee motivation, retention, and overall job satisfaction (Rashid, 2010; Paswan et al., 2005).
Hence, based on previous researches about affecting of development on employee motivation, the forth hypothesis is:
H4: Development positively affect to employee motivation.
Research model
According to above hypotheses, a research model was built as below:
The introductory chapter outlines fundamental motivation theories and reviews previous research to identify four key motivational factors: Management, Working Conditions, Recognition, and Development Ultimately, a research model has been established based on these findings.
RESEARCH METHOD
Research process
The research was conducted as the below chart
Measurement scale
Scale items of Management was adopted from Smith, et al (1996)
M1 I know what is expected of me
M2 Supervisor willing and able to help out
M3 Supervisor treats everyone equitably M4 Supervisor lets me know how I am doing
M5 Supervisor listens to my comments
M7 I receive ongoing feedback that helps me improve my performance
M8 I am received enough instructions to do job well
M9 I am received additional training when needed
Scale items of Working conditions based on Devadass (2011)
Table 3.2 Scale of Working Conditions
J1 I have the materials and equipment I need to do my work right
J2 Progress and procedure allow me to effectively meet my customers’ needs J3 I am offered a work-life balance environment for employees
J4 I am empowered to meet customers’ needs
J5 I am encouraged to come up with new and better ways of doing things J6 My manager and I have discussed my individual goals for each year / semiannual
J7 My manager and I have identified ways I can develop in my career
J8 The goal setting for task in achievable
Recognition was measured base on Moncarz et al (2009)
R1 People are rewarded for meeting customer-quality assurance goals R2 The compensation / benefit system that is communicated to employees
R3 People are rewarded/ recognized for meeting their goals/ objectives
R4 Work teams rewarded/ recognized for meeting their goals/ objectives
Scale of Development was measured base on Lub et al (2012)
L2 I am offered team-building training for employees
L3 I have opportunity to be cross – trained
L4 My company posts job openings so existing employees can apply
L5 My company supports promoting employees from within
Scale of Motivation was measured by below items
MOT1 Overall, management creates my working motivation MOT2 Overall, my working conditions creates my working motivation MOT3 Overall, recognition creates my working motivation
MOT4 Overall, development creates my working motivation MOT5 Overall, my hotel creates my working motivation
The qualitative pilot research
In November 2012, a qualitative pilot study was conducted at Park Hyatt Saigon, utilizing group discussions and in-depth interviews with ten employees This pilot test aimed to evaluate the content and clarity of the terminology used in the measurement scale, ensuring accurate understanding and relevance.
Participants in the group discussion study demonstrated a clear understanding of the content and significance of each measurement scale statement The insights gained from the pilot study will inform the development of the primary questionnaire for the main research.
Main research
The primary research utilized a qualitative approach, surveying 270 employees in the hotel industry of Ho Chi Minh City through questionnaires The official questionnaires were initially created in English and subsequently translated into Vietnamese to ensure clarity A five-point Likert scale was employed to measure responses, ranging from 1 (strongly disagree) to 5 (strongly agree).
Hair et al (1994) pointed out the minimum sample size is equal or larger 5 time of variables This study has 31 variables so the minimum sample size is: n= 31 x 5 155
The primary data will be collected through questionnaires which sent directly or via emails The secondary data sources from books, articles, newspaper, business magazines and websites
After screening the completed questionnaires, the raw data was coded and entered into SPSS version 16 To assess the reliability and validity of the measurement scales, Cronbach’s Alpha and Exploratory Factor Analysis were utilized Subsequently, multiple regression analysis was performed to examine the correlation between the dependent and independent variables.
Cronbach’s Alpha is a statistical measure utilized to assess the internal consistency reliability of multi-item scales, ensuring that the items effectively measure the same construct To enhance the reliability of the scale, Item-to-total Correlation Coefficients can be employed to identify and eliminate items that do not contribute meaningfully A Cronbach’s Alpha value of 0.6 or higher is generally regarded as acceptable for demonstrating sufficient reliability in research.
Following the calculation of Cronbach’s Alpha, Exploratory Factor Analysis (EFA) was conducted to investigate the relationships among the variables The KMO index exceeded 0.6, indicating adequate sampling, while Bartlett’s test revealed a significant result with a p-value less than 0.05 (p