Factors affecting employees motivation in hotel industry in ho chi minh city

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY HUYNH NHAT PHUONG FACTORS AFFECTING EMPLOYEES’ MOTIVATION IN HOTEL INDUSTRY IN HO CHI MINH CITY MAJOR: BUSINESS ADMINISTRATION MAJOR CODE: 60340102 MASTER OF BUSINESS ADMISTRATION THESIS SUPERVISOR: DR TRAN HA MINH QUAN HO CHI MINH CITY, JANUARY 2013 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 ABSTRACT Contents List Of Tables List of Figures List of Exhibits CHAPTER INTRODUCTION 1.1 Research background 1.2 Research questions 1.3 Research objectives 1.3 Scope of this study 10 1.4 Research contribution 10 1.5 Research structure 10 CHAPTER 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 RESEARCH METHOD 3.1 Research process 3.2 Measurement scale 3.3 The qualitative pilot research 3.4 Main research CHAPTER DATA ANALYSIS 4.1 Descriptive statistics of sample 4.2 The construct measurement scale 4.2.1 Cronbach’s Alpha results of each measurement 4.2.2 Exploratory Factor Analysis 4.3.Adjustment of hypotheses and research model 4.4 Regression analysis 4.5 Verification the different level of motivation in personal character 4.6 Discussion about findings CHAPTER CONSLUSIONS AND RECOMMENDATIONS 5.1 Recommendations 5.2 Limitations and recommendation for future researches REFERENCES APPENDIX 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 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 rd 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 72 Coefficients a Dependent variable: motivation Residual Statistics Predicted Value Residual Std Predicted Value Std Residual a Dependent Variable: motivation 73 Histogram of Motivation dependent variable Normal P-P Plot of regression standardized residual 74 Scatterplot of Motivation dependent variable 4.2 Regression analysis with four independent variables Variables Entered/Removed b Model a All requested variables entered Model a Predictors: (Constant), pro, recog, develop, supervisor b Dependent Variable: motivation 75 ANOVA Model Regression Residual Total a Predictors: (Constant), pro, recog, develop, supervisor b Dependent Variable: motivation a Dependent variable: motivation 76 Residual Statistics Predicted Value Residual Std Predicted Value Std Residual a Dependent Variable: motivation Histogram of Motivation dependent variable 77 Normal P-P plot of Regression Standardized Residual Scatter plot of Motivation dependent variable 78 APPENDIX QUESTIONNAIRE Questionnaire in English QUESTIONNAIRE WORKING MOTIVATION IN HOSPITALITY INDUSTRY Please kindly provide some information about yourself and your career Gender □ Male □ Female Age □ Under 20 □ 21-30 □ 31-40 □ Above 40 Education level □ High school □ University □ Post graduated What is your hotel that you are working for? ……………………………………………………………… At present, your department that you belong to: □ Food and Beverage □ Front Office □ Housekeeping □ Others 79 What is your contract type? □ Long term contract □ Short term contract Since how many years you have been working in hotel industry? □ – years □ – 10 years □ 10 – 15 years □ More than 15 years Personal information Gender □ Male □ Female Age □ Below 20 □ 20-30 □ 31–40 □ Above 40 Education level □ Highschool □ University □ Post-graduated 80 Please express the degree of your agreement with statements given below (by circling the number): Management I know what is expected of me Supervisor willing and able to help out Supervisor treats everyone equitably Supervisor lets me know how I am doing Supervisor listens to my comments Evaluations are given regularly I receive ongoing feedback that helps me improve my performance 10 I am received enough instructions to job well I am received additional training when needed Overall, management creates my working motivation Working conditions 11 I have the materials and equipment I need to my work right 12 Progress and procedure allow me to effectively meet my customers’ needs 13 I am offered a work-life balance environment for employees 14 15 I am empowered to meet customers’ needs I am encouraged to come up with new and better 81 ways of doing things 16 My manager and I discuss my individual goals for each year / semiannual 17 My manager and I have identified ways I can develop in my career 18 19 The goal setting for task in achievable Overall, Overall, my working conditions creates my working motivation Recognition 20 People are rewarded for meeting customerquality assurance goals 21 The compensation / benefit system that is communicated to employees 22 People are rewarded/ recognized for meeting their goals/ objectives 23 Work teams rewarded/ recognized for meeting their goals/ objectives 24 Overall, recognition creates my working motivation Development 25 26 I am offered diversity training I am offered team-building training for employees 27 28 I have opportunity to be cross – trained My company posts job openings so existing employees can apply 29 My company supports promoting employees from within 82 30 Overall, development creates my working motivation 31 Overall, my hotel creates my working motivation Thank you for your cooperation! 83 Questionnaire in Vietnamese BẢNG KHẢO SÁT ĐỘNG LỰC LÀM VIỆC TRONG NGÀNH KHÁCH SẠN Xin anh/ chị vui lòng dành chút thời gian trả lời câu hỏi Các thông tin cá nhân hay câu trả lời anh chị giữ kín hồn tồn Khách sạn anh/ chị làm việc? Hiện tại, anh/chị làm việc phận nào? □ Food and Beverage □ Front Office □ Housekeeping □ Khác (xin ghi rõ tên phận): Hợp đồng lao động anh/ chị dạng hợp đồng gì? □ Hợp đồng dài hạn □ Hợp đồng ngắn hạn Anh/ chị làm việc ngành công nghiệp hiếu khách bao lâu? □ – năm □ – 10 năm □ 10 – 15 năm □ Nhiều 15 năm Thời gian anh/ chị làm việc khách sạn □ – năm □ – năm □ - năm □ Nhiều năm Thông tin cá nhân Giới tính 84 □ Nam □ Nữ Tuổi □ Dưới 20 □ Từ20–30 □ Từ31–40 □ Trên 40 Trình độ học vấn □ Trung học phổ thông □ Đại học □ Trên đại học Anh/ chị vui lòng cho biết mức độ đồng ý mệnh đề sau (bằng cách khoanh tròn số) Cách quản lý Tôi biết kỳ vọng tơi Người giám sát có khả sẵn sang giúp đỡ Người giám sát đối xử công với nhân viên quyền Người giám sát cho biết làm việc Người giám sát lắng nghe ý kiến Việc đánh giá lực diễn thường xuyên 85 Tôi nhận phản hồi giúp phát triển lực làm việc Tơi nhận đủ dẫn để hồn thành tốt cơng việc 10 Tơi nhận huấn luyện cần thiết Nói chung, cách quản lý tạo động lực cho làm việc Nội dung công việc 11 Tôi nhận đủ thiết bị công vụ để làm tốt cơng việc 12 Quy trình thủ tục làm việc cho phép tơi đạt mục tiêu cách hiệu 13 Tôi tạo môi trường làm việc cân với sống riêng 14 Tôi trao quyền làm việc để đáp ứng nhu cầu khách hàng 15 Tơi khuyến khích tạo cách thức làm việc tốt 16 Quản lý thảo luận mục tiêu cá nhân hàng năm nửa năm 17 Quản lý xác định hướng phát triển nghề nghiệp tơi 18 Tơi có khả hồn thành u cầu cơng việc 19 Nói chung, điều kiện làm việc tạo động lực cho làm việc Khen thưởng Công nhận lực 86 20 Nhân viên khen thưởng đạt mục tiêu đảm bảo chất lượng phục vụ khách hàng 21 Những chương trình tưởng thưởng nhân viên thơng báo toàn khách sạn 22 Nhân viên khen thưởng/ công nhận họ đạt mục tiêu làm việc họ 23 Nhóm làm việc khen thưởng/ cơng nhận hồn thành mục tiêu làm việc họ 24 Nói chung, việc khen thưởng cơng nhận tạo động lực làm việc cho Học hỏi phát triển 25 26 Tơi tham gia nhiều khóa huấn luyện đa dạng Tơi tham gia khóa huấn luyện teambuilding cho nhân viên 27 28 Tơi có hội huấn luyện chéo (cross – training) Khách sạn tơi thơng báo vị trí trống để nhân viên ứng tuyển 29 Khách sạn hỗ trợ việc thăng chức cho nhân viên 30 Nói chung, việc học hỏi phát triển tạo động lực làm việc cho 31 Đánh giá chung, khách sạn tạo động lực làm việc cho Xin cảm ơn hợp tác anh/ chị! ... factors affecting to employees? ?? motivation in hotel industry in Ho Chi Minh city? ” and determined level of affecting of each factor on motivation The result is there were four factors affecting to employees? ??... 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... 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