FACTORS AFFECTING EMPLOYEES’ MOTIVATION IN HOTEL INDUSTRY IN HO CHI MINH CITY

The result showed that recognition, development, supervisor and promotion are four factors which affecting to hotel employee’s motivation in Ho Chi Minh city context.. There have many re

ACKNOWLEDGE

Firstly, I would like to express my appreciate to my research supervisor, Dr Tran

Ha Minh Quan for his support, suggesting, guidance during time of my dissertation Secondly, I would like to express my gratitude to Prof Nguyen Dinh Tho for his effort in thoroughly guidance, encourage and support to every student throughout two-year-course

Thirdly, this research was contributed by my classmates, my colleagues, and was moral assisted by my family I would like to send my deepest thank to them

Last, ISB staff did helped, supported with their best for convenience of MBUS

2010 I appreciate very much for their contribution to my present result

ABSTRACT

Within 10 years, hotel industry in Ho Chi Minh city has developed impressively and has quite highly demanded in employing labor force Working environment is stable and professional is one of many attractive points of hotels, but it contains many characteristics which may demotivate employees Motivating staff to work better, more efficient is always one of business goals, especially in this special industry This study aims to investigate which factor affecting to hotel employee’s motivation The result showed that recognition, development, supervisor and promotion are four factors which affecting to hotel employee’s motivation in Ho Chi Minh city context

Keywords: employee motivation, hotel industry, recognition, Ho Chi Minh city

Contents

ACKNOWLEDGE 1

ABSTRACT 2

Contents 3

List Of Tables 5

List of Figures 6

List of Exhibits 7

CHAPTER 1 INTRODUCTION 8

1.1 Research background 8

1.2 Research questions 9

1.3 Research objectives 9

1.3 Scope of this study 10

1.4 Research contribution 10

1.5 Research structure 10

CHAPTER 2 LITERATURE REVIEW 12

2.1 Definition of Motivation 12

2.2 Motivation theories 12

2.3 Previous researches about motivation in hospitality industry and identifying hypotheses in this study 18

2.4 Research model 24

CHAPTER 3 RESEARCH METHOD 26

3.1 Research process 26

3.2 Measurement scale 26

3.3 The qualitative pilot research 26

3.4 Main research 29

CHAPTER 4 DATA ANALYSIS 31

4.1 Descriptive statistics of sample 31

4.2 The construct measurement scale 32

4.2.1 Cronbach’s Alpha results of each measurement 33

4.2.2 Exploratory Factor Analysis 35

4.3.Adjustment of hypotheses and research model 38

4.4 Regression analysis 39

4.5 Verification the different level of motivation in personal characteristics 43

4.6 Discussion about findings 44

CHAPTER 5 CONSLUSIONS AND RECOMMENDATIONS 46

5.1 Recommendations 46

5.2 Limitations and recommendation for future researches 50

REFERENCES 52

APPENDIX 57

List Of Tables

Table 2.1 A Reorganization of Maslow's and Alderfer's Hierarchies 59

Table 2.2 Summary of factors affecting to employees’ motivation in hotel industry 19

Table 3.1 Scales of Management 26

Table 3.2 Scale of Working conditions 27

Table 3.3 Scale of Recognition 27

Table 3.4 Scale of Development 28

Table 3.5 Scale of Motivation 28

Table 4.1 Demographic Statistics of the Respondents 32

Table 4.2 Cronbach’s Alpha results of each measurement 33

Table 4.3 KMO and Bartlett’s test for independent variables 35

Table 4.4 KMO and Bartlett’s test for dependent variables 38

Table 4.5 Pearson Correlation Coefficient 39

Table 4.6 Summary output of Regression Analysis 40

Table 4.7 Summary output of Regression Analysis after remove one factor 41

Table 4.8 Personal characteristics and employee’s motivation 43

Table 4.9 Hypotheses testing 45

List of Figures

Figure 2.1 Research model 25 Figure 3.1 Research process 26 Figure 4.1 Adjusted research model 38

List of Exhibits

Exhibit 2.1 Maslow’s Hierarchy of Needs 57

Exhibit 2.2 The Herzberg's motivation-hygiene theory 57

Exhibit 2.3 Equity theory ratios 58

Exhibit 2.4 Expectancy Model 59

Exhibit 2.5 A diagram of Theory X and Theory Y 59

Exhibit 2.6 Job Charactersitics Model 60

CHAPTER 1 INTRODUCTION

1.1 Research background

Tourism industry plays a significant role in Vietnamese economic structure According to Grant Thornton Vietnam, in 2012 tourism market has welcomed more than six million foreign travellers, which increases 19.1% compared with last year data That result has contributed to general development of hotel industry This field had been attracting nearly 11 billion USD with 247 projects up to 2009; ranked the

3rd after industrial processing, manufacturing and real estate The more development

in hotel industry, the more demand of labor force in this field But hotel industry is

a kind of service industry, whose products created from human’s contact, owned unique characteristics Seasonableness is a stand out characteristic, which influences

to labor force in this field In the peak period, hotels need a large amount of labor force, working with high productivity But in low season, they keep a few permanent employees The consequence is an unstable labor force, demotivated part-time employees and negative influence to performance of permanent staff Customer target in hotel is tourists, who come from different countries, which owned different cultures, hobbits, customs, etc Servers, who directly contact with customers, need to understand their requirements in order to assure quality service The consequence is the stressful job toward servers In addition, employees in hotel are required to work in high specialization, under high pressure of discipline, together with sensibility, accuracy and consistency

For those above characteristics, labor force in hotel is likely to leave when they are under high pressure and demotivated from management team High staff turnover is

a common and costly problem in hotel industry Reasons include such as low pay, antisocial working hours, menial work and limited career opportunities (Xander Lub

et al 2012, cited in Barron, 2008; Davidson et al., 2011; Kusluvan and Kusluvan,

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

Without continuity in customer relationship, organization does not have customer loyalty, stressful management, conflict happens easily and low efficiency Those make difficult for company to compete on marketplace Hence, constructing a good policy to motivate and retain good performance employees, who can create unique experiences and relationships with customers, is an important mission A stable workforce is a significant competitive advantage “Customer relationships are stronger when an organization’s workforce is stable and customers can depend on the company people – the continuity of their product knowledge, industry experience and proven performance.” (Kreisman, 2002)

There have many researches, conducted in many countries, found out factors affecting to employees’ motivation in hotel industry in general With a speed-up in developing hotels, needs of recruiting new employees and retain good performance ones, studying about motivation in hotel in Vietnam is necessary in order to improve competitive advantage in market This study raises research objectives about creating motivation in hotel industry

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

1.3 Scope of this study

This research will be conducted in hotel businesses in Ho Chi Minh City, included 4

or 5-star hotels and other under 4-star hotels The interviewees will be employees who working in variety departments such as: food and beverage, front office, finance, human resource, etc

1.4 Research contribution

This research has contributed to measurement system of working motivation level

in hotel industry In reality, this research will help Managers who working in hotel industry in decision making in human resource management, creating appropriate decisions in managing, in order to increase productivities and employees’ motivation level Otherwise, the result of this research has contributed to human resources management researches in overall and in hotel industry

1.5 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

CHAPTER 2 LITERATURE REVIEW

The literature review consists of Definition of motivation, Theories of motivation; Previous researches in hospitality industry and identifying significant motivational factors in this paper

2.1 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, 1998) According to Spector (2003), motivation is “an internal state that induces a person to engage in particular behaviors” Pinder (1998) describes work motivation

as the set of internal and external forces that initiate work-related behavior, and determine its form, direction, intensity, and duration The definition recognizes the influence of both environment forces (e.g organizational reward systems, the nature

of the work being performed) and forces inherent in the person (e.g individual needs and motives) on work-related behavior

In generally, most of definitions of motivation are related to unsatisfied needs of employees, under influences of intrinsic and extrinsic factors, forces employees to engage to a particular behavior in order to reach their goals and satisfy their needs The psychology of motivation is tremendously complex (Herzberg, 1987) Theories about motivation were developed and became popularly in practice as below

2.2 Motivation theories

2.2.1 Maslow’s Hierarchy of Needs

Maslow’s hierarchy of Needs is a theory in psychology, proposed by Abraham Maslow in his 1943 paper “A theory of Human Motivation” Maslow believed that

at least five sets of goals which can be referred to as basic needs: physiological, safety, love, esteem and self-actualization (Exhibit 2.1) The implication from this

theory is useful for managers and organization leaders For example, there has a advice for managers is finding ways of motivating employees by devising programs

or practices aimed at satisfying emerging or unmet needs Another way is implementing support programs and focus groups to help employees deal with stress, especially during more challenging time

2.2.2 McClelland’s Need Theory

In the publication “The Achieving Society” in 1961, McClelland described the theory of needs focusing on three needs: achievement, power and affiliation The need for achievement was defined as the drive to excel, to achieve in relation to a set of standards, to strive to succeed The need of power was defined as the need to make others behave in a way that they would not have behaved otherwise The need for affiliation was defined as the desire for friendly and close interpersonal relationships McClelland proposed that high achievers are more likely to be successful entrepreneurs The need of affiliation suggested that people have the desire to spend time in social relationships, join group, and wanting to be loved The need of power reflects an individual’s desire to influence, coach, teach, or encourage others to achieve

2.2.3 Herzberg’s two-factor theory

The Two-factor theory (also known as Herzberg's motivation-hygiene theory and Dual-Factor Theory) states that there are certain factors in

the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction It was developed by Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other (Herzberg, 1959) Two-factor theory distinguishes between:

- Motivators (satisfaction): five factors stood out as strong determiners of job satisfaction:

 Achievement

If organization wants to motivate people on their jobs, Herzberg suggested emphasizing factors associated with work itself or to outcomes directly derived from it, such as promotional opportunities, personal growth, recognition, responsibility and achievement These are the characteristics that people find intrinsically rewarding (Exhibit 2.2.)

2.2 4 Alderfer’s ERG theory

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 differs from Maslow’s Need Hierarchy as ERG theory demonstrates that more than one need may be operative at the same time ERG theory does not assume a rigid hierarchy where a lower need must be substantially satisfied before one can move on (Table 2.1)

2.2.5 Equity theory

The equity theory of motivation assumes that individual is strongly motivated to maintain a balance between what they perceive as their inputs and their rewards (Exhibit 2.3) Adams (1965) suggested that individual expectations about equity or fair correlation between inputs and outputs are learned during the process of socialization and through the comparison with inputs and outcomes of others The consequence of employee who perceiving they are not being treated fairly, create a variety of options for the employees (Champagne, 1989) The options include reducing their inputs through directly restricting work outputs, or increasing their outputs in order to seeking salary increases or seeking a more enjoyable task The employee could withdraw from the situation, quit the job and seek another employer

2.2.6 Expectancy theory

Expectancy Theory proposes that a person will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors

due to what they expect the result of that selected behavior will be (Oliver, R.,1974) Victor H Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities, a process controlled by the individual (Exhibit 2.4) The individual makes choices based on estimates of how well the expected results of a given behavior are going to match up with or eventually lead to the desired results There are three mental components that are seen as instigating and directing behavior: Valence, Instrumentality and Expectancy

2.2.7 Theory X and theory Y

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

 Individuals who desire security

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

 Individuals who seek responsibility

The management implications for theory X workers are that, to achieve organizational objectives, rewards of varying kinds are likely to be the most popular

motivator The challenge for management with theory Y workers is to create a working environment (or culture) where workers can show and develop their ability (Exhibit 2.5)

2.2.8.Goal setting theory

Edwin Locke (1968) stated that employees were motivated by clear goals and appropriate feedback In 1990, Locke and Gary Latham, who studied the effect of goal setting in the workplace, published their seminal work, “A theory of Goal Setting and Task Performance” To motivate, goals must have five principles as below:

2.2.9 Job Characteristics Model

The Job Characteristics Model (JCM) (Exhibit 2.6), as designed by Hackman and Oldham attempts to use job design to improve employee motivation the JSM proposes relationships between three classes of variables:

 Core job dimensions

 Critical psychological states

- 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

Theorical researches of motivation determined factors with variety approaches But

in practice, employers usually use terms of monetary and non-monetary factors as

an easy tool to motivare their employees

2.3 Previous researches about motivation in hospitality industry and identifying hypotheses in this study

The above motivation theories were studied, applied in afterwards researches, in order to determine which factor affecting to employee’s motivation in each specific circumstance According to studies, papers conducted in general and hotel sector, which were reviewed in this research, there are four motivational factors which are repeated many times Based on these factors, hypotheses will be built in order to

verify and evaluate their affecting to employee motivation in Ho Chi Minh city context

Table 2.2 Summary of factors affecting to employees’ motivation in hotel industry

No Variables

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)

2.3.1 Management

Barbara J Kreiman (2002) in her paper about employee motivation, commitment and retention has sorted factors which make employee motivational behavior into two groups The first one which belongs to individual concept are: needs, value and beliefs, knowledge and skills, motivation and their interpersonal style The second one which belongs to job context are management/ leadership, rewards, organizational environment, tools and equipment, atmosphere According to her, these factors are combined to Motivational behavior, which will lead to organization’s commitment In this paper, she specially emphasized role of manager’s control, which drive employee satisfaction and commitment Manager’s control includes “providing recognition and feedback, the opportunity to learn and grow, fair compensation reflecting an employee’s contributions and value to the organization, providing a good work environment, and above all, recognition and respect for the uniqueness of each person’s competencies, needs, desires and style.” Buckingham and Coffman (1999) points manager’s role in employee’s commitment, that is they must have good communicate skills, providing positive feedback in order to develop their staff’s strengths and overcome weaknesses There are many reasons for employee resigning cited in studies of Buckingham and Coffman (1999); Kaye and Jordan-Evans (1999); Kreisman (2002); Herman (1999), and the most popular reason was given is bad relationship between manager and employee Hence, managers and their management ways play a signification and important role in motivation employee and builds organization commitment

According to Adam’s equity theory, Hellriegel and Slocum (2007) and Coetsee (2003) provide some managerial approaches: first, managers should treat their staff fairly; second, encourage honest and transparent communicate about employee’s inputs and outputs in order to avoid dissatisfaction Manager’s role in Adam’s equity theory plays an important role because of its moderator position from individual effort to individual goals through recognition If employee’s effort is not recognized by manager, their new goal may be to decrease effort or quit the job

Locke and Latham’s goal-setting theory emphasized important role of manager in setting goal in order to motivate their employee Borkowski (2009) points that although goal-setting is a simple concept but it requires careful planning and monitoring by managers Positive feedback and coaching in approximate time is necessary to motivate employee working toward a specific goal

From above literatures, management was supposed to affect to employee’s motivation So, the first hypothesis is:

H1: Management positively affects to employees’ motivation

2.3.2 Working conditions

Working conditions is considered as a motivational factors, according to Maslow’s hierarchy of needs It is necessary condition in supporting employees work better and more effective In Herzberg theory, working conditions has more characteristics

of a hygiene factor than a motivational factor However, there are many studies which conducted in hotel area, supposed that working conditions is a motivational factors Hence, in this paper, it is still considered whether a motivation factor or not Darren Lee-Ross (1998) cited from Byrne (1986), argues that motivation is linked

to working conditions “There are many models assume that if employees enjoy their working conditions, they become motivated and are less likely to quit their jobs” (DeMicco and Reid, 1988; Vroom and Deci, 1970) In the paper of Darren Lee-Ross, in order to improve working conditions in hotel industry, the Job Diagnostic Survey, based on motivation theory of Hackman and Oldham (1980) Job Characteristics Model, was conducted and recommended in practice Using simple Job Diagnostic Survey with 21-question version instead of the initial 87-question version, managers can construct job profiles for each department If any Core Job Dimension receiving low score, the practical action taken The formula for motivation potential score (MPS) is given to compare with existing industrial norms and organization norms This applied survey will help managers find out their

managing “weakness”, in term of working conditions, and action taken to overcome

Terry Lam et al (2001) in his study of managerial job satisfaction in Hong Kong’s Chinese restaurants has pointed that work environment and job itself are two factors

in predicting overall job satisfaction Working environment is place of harmonious working relationships between colleagues, unambiguous human resource policies, and opportunities for employee development exist (Terry Lam et al, 2001) High degree of autonomy of line employees or assistant managers is encouraged in this paper They should be given more power to make their own decision in restaurant operations, dealing with customers or other colleagues, be encouraged to come up with new and better ways of doing things to meet customer’s needs

Kadasamy and Ancheri (2009) cited in Yu (1999) “it is a challenge for the management to motivate employees to stay on the job, by ensuring measures at enhancing the working condition to counter turnover” Their study about quality of work –life (QWL) in hotel sector and they identified eight dimensions of QWL: job characteristics, person-job fit, company image, HR policies, physical working conditions, work-life balance, work group relationship and dealing with customers Goal-setting is a part of job content When goals are set for employees that need to

be completed with appreciate timeline, its role is shaping and reinforcing the effort

of employees He or she will work toward a specific goal and continuously direct his or her efforts to achieve the goal (Nel et al, 2004) So goal-setting is supposed to increase motivation (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

2.3.3 Recognition

There are many researches about effecting of reward and recognition to employee’s motivation The recognition and respect is considered as “esteem needs” in hierarchy of Maslow’s need theory That is the thing employee would like to receive from organization for their efforts According to Hertzberg (1987), recognition is one of five dimensions of strong satisfaction, which lead to motivation, and it belongs to extrinsic motivation Achievement, recognition together the job itself, responsibility and feedback are all motivators in study of Nel

at al (2004) These kind of extrinsic reward can include financial or non-financial rewards, such as: period bonus, increase salary, on the spot rewards, be praised in meeting for their performance formally or informally, etc An important point are made by Kreitner & Kinicki (2008) about inequity recognition If employees recognizes that their effort was not equity appraised compare to others, it will demotivate them Buckingham and Coffman (1999) has point one of the reason why employee chose to left company is felling unappreciated, not value in their organization Recognitions from organization can be anything: financial rewards or training, developing, opportunities to promotion, etc

So, with its necessary of recognition in motivate employee, the third hypothesis is:

H3: Recognition positively affect to employee’s motivation

2.3.4 Development

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 is considered as gaining skills and taking advantage of many different methods of learning that benefit employees and organization alike” (Simonsen, 1997) Development not only be promoted, but also be provided a challenge, new learning opportunities or new tasks which contribute on skills

improvement or organization’s success, such as: training, cross-training, job advancement, provide variety of knowledge or skills, etc

The job should be designed for “enlarging” or “enriching” to account for deficiencies of skill variety, autonomy and agent feedback (Lee-Ross, 1998) In hotel sector’s practice, cross-training is encouraged for most of employees who ready to improve their skills and “know-how” knowledge Training is offered in most of hotels in order to remind operation standards, introduce new products or services skills This is a good investment to people when there are many evidence show that training activities are correlated with productivities and retention (Moncarz et al, 2009) Moncarz et al (2009) cited in Youndt et al (1996) point that human resource practices developing talent and team-oriented workers improve employee productivity and customer satisfaction Hotels should focus on training and developing for their exist employees instead of waste cost on hiring or orientation new employees, this would increase employee motivation, retention and job satisfaction (Rashid, 2010, cited in 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

2.4 Research model

According to above hypotheses, a research model was built as below:

Figure 2.1 Research model

The first Introduction chapter has presented basic Motivation theories, previous researches has studied in other to identify fours motivational factors which were used in this paper: Management, Working conditions, Recognition and Development In the end, the research model has built

CHAPTER 3 RESEARCH METHOD

This chapter presents brief description of research method which was conducted in this paper It presents brief research process, the qualitative pilot test, the measurement scales were adopted from previous researches and the main research

3.1 Research process

The research was conducted as the below chart

Figure 3.1 Research process

3.2 Measurement scale

3.2.1 Management

Scale items of Management was adopted from Smith, et al (1996)

Table 3.1 Scale of Management Code Survey question

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

M6 Evaluations are given regularly

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

3.2.2 Working Conditions

Scale items of Working conditions based on Devadass (2011)

Table 3.2 Scale of Working Conditions Code Survey question

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

3.2.3 Recognition

Recognition was measured base on Moncarz et al (2009)

Table 3.3 Scale of Recognition Code Survey question

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

3.2.4 Development

Scale of Development was measured base on Lub et al (2012)

Table 3.4 Scale of Development Code Survey question

L1 I am offered diversity training

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

3.2.5 Motivation

Scale of Motivation was measured by below items

Table 3.5 Scale of Motivation Code Survey question

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

3.3 The qualitative pilot research

The pilot test was conducted through qualitative pilot study with group discussion technique The qualitative pilot survey was conducted in November 2012 by making an in-depth interview with ten employees who working in Park Hyatt Saigon It was used to check the content and meaning of words which were used in the measurement scale

The interviewees who joined in group discussion study understood the content and meaning of each statement of measurement scales The pilot study would help to create the main questionnaire that would be used in the main research

3.4 Main research

The main research is conducted by qualitative method with 270 employees who working for hotel industry in Ho Chi Minh city through questionnaires The official questionnaires were made in English, then translated into Vietnamese for

understanding clearly The measurement scale of indicators is five-point Likert scale, from 1-strongly disagree to 5-strongly agree

3.4.3 Data analysis method

The satisfied questionnaires, after screening, were coded and input the raw data in SPSS version 16 Cronbach’s Alpha and Exploratory factor Analysis would evaluate the reliability and validity of measurement scales Then, the multiple regression would be conducted to evaluate correlation between dependent and independent variables

3.4.3.1 Reliability

Cronbach’s Alpha is used to compute the internal consistency reliability for multiple item scales The Item-to-total Correlation Coefficients would be used to

reject the unappreciated items Cronbach’s Alpha is 0.6 or greater is considered

“Acceptable”

3.4.3.2 Validity

After computing Cronbach’s Alpha, the Exploration Factor Analysis method would

be applied to explore the relationship between the variables The KMO index was greater than 0.6 and Barlett’s test has signification which is smaller than 0.05 (p<0.05)

CHAPTER 4 DATA ANALYSIS

The previous chapter displayed research methodology and research design of pilot research and the main research This chapter will provide the data analysis and finding discussion

4.1 Descriptive statistics of sample

4.1.1 Final sample

There were 240 employees who working for hotel businesses in Ho Chi Minh City answered the questionnaires There were 270 questionnaires sent out and 222 qualified questionnaires were used for data analysis The usable response rate to the research is therefore 92.5 percent

4.1.2 Demographic Statistics

Table 4.1 Demographic Statistics of the Respondents

Item Frequency Percent (%) Item Frequency Percent (%)

12.6 87.4 100.0

45.5 54.5

100

Work experience

1-5 year 5-10 years 10-15 years

>= 15 years Total

Age

<= 20 21-30 31-40

>=40 Total

Education

Highschool University Postgraduate Total

5.0 79.7 13.1 2.3 100.0

33.8 64.9 1.4 100.0

As can be seen in table 4.1, gender gap is not too significant, with 52.7% of male and 47.3% of female Labor force in hotel is quite young with 79.7% respondents within 20-30 years old 68% of the respondents have been working within 1-5 years and 64.9% of them have university degree

4.2 The construct measurement scale

To assess the reliability and validity of measurement scales, Cronbach’s Alpha and exploratory analysis were used in this research Cronbach’s Alpha was used to eliminate garbage items with low item-total correlations (<0.4) The measure would

be chosen if Cronbach’s Alpha was from 0.6 (Nunnally & Bernstein 1994)

4.2.1 Cronbach’s Alpha results of each measurement

Management, Working conditions, Recognition, Development and Motivation have Cronbach’s Alpha coefficient greater than 0.6 and correlation coefficient of variations (Corrected Item-Total Correlation) are greater than 0.4 Therefore, all of those items satisfy the criteria so they could put into Exploratory Factor Analysis (EFA) See more at Appendix 1

Table 4.2 Cronbach’s Alpha results of each measurement

Scale Mean if Item Deleted

Scale Variance

if Item Deleted

Corrected Item-Total Correlation

Cronbach’s Alpha if Item Deleted

Management: Cronbach’s alpha = 0.895

4.2.2 Exploratory Factor Analysis

4.2.2.1 EFA for factors affecting to employees’ motivation

Principal Axis Factor analysis with Promax rotation was conducted to assess the underlying structure for the twenty three items of the Employees’ Motivation questionnaires Five factors were extracted After rotation, the first factor accounted for 43.609% of the variance, the second factor accounted for 8.291% of the variance, the third factor accounted for 6.103% of the variance, the fourth factor accounted for 5.201% of the variance and the fifth factor accounted for 4.005% of the variance Table 4.5 displays the items and factor loadings for the rotation factors, with loading less than 0.5 omitted to improve clarity See more at Appendix

2

Table 4.3 KMO and Bartlett’s test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .904

Bartlett's Test of Sphericity Approx Chi-Square 3500.834

The Exploratory Factor Analysis had deleted M1, M6, M7, J4, J5 and L2 because factor loadings of these items are less than 0.5

The first four items included: M2, M3, M4, M5 All of these items related to relationship between employees and supervisor, such as: supervisor’s willing to help out, employees’ performance feedback from supervisor and how supervisor listens their employees, etc So the first factors was named as SUPERVISOR

SUPERVISOR

(Variance explained:

43.609%)

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

The second four items was kept as initially Its name was RECOGNITION

R3 People are rewarded/ recognized for meeting their goals/ objectives R4 Work teams rewarded/ recognized for meeting their goals/ objectives The next five items was belong to individual development such as: training, job rotation, setting goals Item M9 was spilt out of factor Management and was added into this new factor Two items J6 and J7 related to setting goal for career development, which initially belong to Working Conditions, were added into new factor So, it was still reasonable when these items were combined in factor DEVELOPMENT

DEVELOPMENT

(Variance

explained: 6.103%)

M9 I am received additional training when needed

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

L1 I am offered diversity training

L3 I have opportunity to be cross – trained

The fourth factor was Working conditions It contained four initial items were J1, J2, J3, J4 Item M8 which initially belong to Management factor, was separated and added into this factor Item M8 had meaning suitable to this factor’s content Hence, adding item M8 to Working conditions factor was acceptable

WORKING

CONDITIONS

(Variance

explained: 5.201%)

M8 I am received enough instructions to do job well

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

J8 The goal setting for task in achievable

The last two items related to promotion within organization In reality, promotion is considered as an effective tool to retain employees and motivate them Promotion can be used to reward past employee efforts, promote investments in specific human capital and low job turnover (Lazear, 1998) If the employees are offered opportunities to growth and get promoted, they will be satisfied and be more motivated For this reason, promotion may had significant affecting to employees’ motivation in this study The two items created the last factor: PROMOTION

4.2.2.2 EFA for factor of employees’ motivation

Table 4.4 KMO and Bartlett’s test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .821

Bartlett's Test of Sphericity Approx Chi-Square 375.796

Only one components extracted, all items MOT1, MOT2, MOT3, MOT4, MOT5 had loading factor is greater than 0.5, KMO is 0.821, Barlett’s Test had significance level at 0.000 (less than 0.05) Hence, this result is acceptable

4.3.Adjustment of hypotheses and research model

According to the EFA’s result, the items in four original factors have been separated and been added to become new factors The conceptual framework, because of above reason, should been adjusted with five new factors

Figure 4.1 Adjusted research model

Employee's motivation

The adjustment of hypotheses:

H’1 There is a positive affecting between Supervisor and Employee’s motivation H’2 There is a positive affecting between Recognition and Employee’s Motivation H’3 There is a positive affecting between Development and Employee’s Motivation

H’4 There is a positive affecting between Working Conditions and Employee’s Motivation

H’5 There is a positive affecting between Promotion and Employee’s Motivation

4.4 Regression analysis

4.4.1 Pearson Correlation Coefficient

Table 4.5 Pearson Correlation Coefficient

Supervisor Recognition Development Conditions Promotion Motivation

5

216

221

489.303 6.377

76.730 000a

Model

Unstandardized Coefficients

Standardized Coefficients t Sig

Collinearity Statistics

.925 063 052 051 064 101

.192 334 220 103 172

2.534 3.344 6.650 3.755 1.733 3.254

.012 001 000 000 085 001

.506 661 486 475 597

1.977 1.512 2.059 2.107 1.675

a Dependent variable: motivation

With the above results, the Working conditions factor are statistically in significant greater than significance level of 5%, so this variable should be excluded from the model Regression results after rejected one factor that variable turned on as below: