Determinants of employee loyalty in movenpick hotel saigon

Many organizations in the hotel industry face difficulties in retaining employees since the organization unable to identify the factors which contribute to employee satisfaction and the

or five-star equivalent hotels, while ordinary tourist hotels are three-star equivalent hotels

The hotel industry has been recognized as a potential prospect in the growth of the service industry in Vietnam However, the growth of hotel industry is impeded by the high turnover rates

of employees who worked in the hotel industry

Hotels that provide higher salaries, strong reputation, and benefit-in-kind can easily retain their employees because the employee satisfaction is achieved Employee satisfaction is the employees who enjoying their positions and feels rewarded for their efforts will ultimately be the most successful, as well as the most beneficial to their companies Employee satisfaction is also used to describe the employees’ happiness, contented, fulfilling their desires and needs at work Employee satisfaction is a factor in employee motivation, employee goal achievement, and employee morale in the workplace A mediocre employee would like to stay in the organization if the employee satisfied with the workplace environment Moreover, the longer an employee works for a company, the more valuable they are becoming, especially in the service industry

Heskett et al (1997) as cited in Abdullah (2011) stated that, staff training programs can helps to create the employees satisfaction and loyalty Besides, according to Sturgeon (2006) also agrees that training is one of the main drivers of employees’ satisfaction From here, researchers also know that an industry which offers training programme to their employees may increase their employee satisfaction

The employee satisfaction will directly affects the employee loyalty in hotel industry Employee loyalty can be described in terms of a process, where certain attitudes give rise to certain behaviors Loyalty has two dimensions which is internal and external Loyalty is a fundamentally

of an emotional attachment The internal dimension is the emotional components It includes the feelings of caring, of affiliation and of commitment Employer must understand their employees feeling and the employees who are facing any problem can consult with counselors that provide

by the employer This can increase the employees’ loyalty to the employer by reducing the

turnover rate Next, external dimension has to do with the way loyalty to manifests itself This dimension is comprised of the behaviors that display the emotional component and is the part of loyalty that changes the most According to Rider (1998) as cited in Mehta et al (2010) found that trust, loyalty and related norms may have a crucial economic role to play and it does not follow that regulation should be used to foster their development In addition, according to Cunha et al (2002) state that the relationships of the interplay between culture, structure and leadership which are managed to build employee loyalty These processes are effective because the employees reinforce with one another

The model chain of relationships between profits and growth are linked to the customer loyalty while customer loyalty is linked to customer satisfaction, in turn, customer satisfaction is linked to service value while service value is linked to employee productivity, whereas employee productivity is linked to employee loyalty, employee loyalty is in turn linked to employee satisfaction, and employee satisfaction is linked to internal quality of work life

Problem Statement

The hotel industry has been recognized as a potential prospect in the growth of the service industry However, the growth is impeded by the high turnover rates of employees in the hotel industry Many organizations in the hotel industry face difficulties in retaining employees since the organization unable to identify the factors which contribute to employee satisfaction and the resultant loyalty

Retention experts said that hotels spend thousands dollar to train for each new employee to replace a seasoned worker who leaves every year It is no longer a startling fact that the cost of losing an employee is between half and one-and-a-half times their annual salary (CHA International, 2009) So, recruiting new staff is a time consuming and expensive exercise that directly affects the organization’s bottom line

The hotel industry has higher turnover rate issue from the loyalty of employees towards the company This may linked with the employees’ job satisfaction that the company given Therefore, organizations should be concerned about their employees’ level of job satisfaction because employees’ satisfaction increases employee retention

So I have chosen the thesis " Determinants Of Employee Loyalty In Mövenpick Hotel Saigon"

2 Research Objective

2.1 General Objective

The main objective of this research is to fill up the above mentioned gap in the problem statement According to the research problem, the following objectives are identified in addition to the main objective to achieve through this research In order to get more information to achieve the

objective of this research, researchers have conduct literature review to understand the concept of each variable in this research

Specific Objective

The specified objectives are as below:

i To find out the relationship between career development and employee loyalty

ii To find out the relationship between compensation and rewards, and employee loyalty

iii To find out the relationship between job security and employee loyalty

iv To find out the relationship between working environment and employee loyalty

v To ensure that the relationship of the factors in the employee satisfaction and employee loyalty

in Hotel Industry how can retaining employee

2.2 Research Questions

Based on the problems have been identified in problem statement lead to create the objectives of this research In order to conduct this research, researchers have developed few questions such as: (1) What are the relationships between compensation and benefits and employee loyalty in Hotel Industry?

(2) What are the relationships between career development and employee loyalty Hotel Industry? (3) What are the relationships between job security and employee loyalty Hotel Industry?

(4) What are the relationships between working environment and employee loyalty Hotel

Industry?

(5) How ensure that the relationship of the factors in the employee satisfaction and employee loyalty in Hotel Industry that can retaining employee ?

3 Objects and study range

3.1 Content and researched

- Content of the main research topics related to matters of employee loyalty at the hotel

- People of the survey include: employees are working at Mövenpick Hotel Saigon

3.2 Study range

- Space: At Mövenpick Hotel Saigon

- Time: Analysis and assessment of employees’ loyalty in the period 2012-2014 and

proposing solutions in 2015- 2016

4 Research Methodology

4.1 Data Collection Methods

Collecting primary data: To do this study, I surveyed the employees, working at Mövenpick Hotel Saigon by questionnaire surveys method and direct interviews to get the necessary information Collecting secondary data: I rely on published or collected datas from Mövenpick Hotel Saigon

to collect the necessary data for the subject

In addition, scientific research reports of the author have been published in magazines, books and newspapers are also used for getting reference information in the subject

4.3 The analytical method

- Descriptive statistic method of working experience, gender, age, educational level, position, working department, seniority

- EFA method analyzes factors affecting loyalty of employees to the Mövenpick Hotel Saigon

- Regression correlation methods were used to determine specifically importance of each factor affecting employees’ loyalty to the Mövenpick Hotel Saigon

- The statistical test methods were used to test differences according to the individual characteristics of the employees’ loyalty at Mövenpick Hotel Saigon

4.4 Expert method

During the research process, I used collection and consultation method of experts in hotel industry to give solutions for the topic

4.5 The steps to study

The study was implemented by two steps: qualitative research and quantitative research

Qualitative Research

A qualitative research to explore, adjust and supplement the observed variables in order to measure the researched concepts This study mainly focused on in-depth interviews with 160

employees in different positions such as reception, restaurant, cook, room, engineering department to determine preliminary factors affecting the loyalty of the staff at Mövenpick Hotel Saigon

Preliminary research result as a basis for designing questionnaires to give to formal research

Because of having difficulties, I can not get a list of overall employees’ hotel and approach them to investigate directly, the questionnaire is based on approaching the staff easily and following a certain principle to ensure accident According to Hair & CTG (1998), in order to

be able to analyze explored factors for colleting data with the sample size which is at least 5 samples of 1 observed variable

Basing on the total variable of official questionnaires will select a number of samples that are

5 times as the total variables as the first sample to survey customers directly With 21 observed variables in the questionnaire are the number of questionnaire to investigate would

be 21 * 5 = 105 questionnaires In addition to avoiding some information questionnaires are incomplete or unusable, I investigated further 55 questionnaires The total investigated questionnaires will have 160 questionnaires

In the topic, I use statistical economic method to conduct to gather, process and analyze data After that I analyze the relationship between these factors and find solutions to the problem During the research process, I use the collecting method and consultation of experts in hotel management industry, consulting working experience in the maintenance and development human resources in order to offer solutions for the topic

4.6 Research Process

Stage 1: Using qualitative research methods Collecting information from this qualitative

study aim to explore, supplement for the model, adjust the scale of factors affecting

employees’ loyalty

Stage 2: Using quantitative research methods by interviewing technical employee working at

Mövenpick Hotel Saigon through detailed questionnaire The model uses scale Likert with 5 points from choosing number 1 meaning "strongly disagree" to selecting the number 5

meaning "strongly agree"

Collecting data is solved by SPSS After codifying and filtering data which will go through the following analysis:

Level of reliability rating: reliability of the scale is assessed by Cronbach alpha coefficient, after that unsuitable variables will be eliminated and the scale will be accepted as Cronbach alpha coefficient is satisfied

Next, Analyzing factors will be used to eliminate measurement variables which are satisfied Testing model’s hypotheses and the suitability level of generality model Multivariate

regression analysis use to identify factors affecting employees’ loyalty and what factors influence the most

Finally, verifing T-test and analyzing ANOVA are to find difference with statistic meaning following several personal characteristics and employees’ loyalty

Figure 1 : Research Process

Objective of the study

Studing theory

basis of loyalty

Basing on real situation of the company Stage 1

Stage 2

Face to face discussion

Qualitative Research

Quatitative Research

SPSS software

Solving and summarizing data

Gathering information

Concluding and proposal

Interviewing by questionnaire

n = 145

Result and discussion

5 Meaning of theory and practicality in the topic

Researching systematized scientifically and practically about employees’ loyalty at Mövenpick Hotel Saigon Research result , proposals and solutions can help Leaders of Mövenpick Hotel Saigon having appropriate management policies to promote and use human resources well This study is a scientific document which is valuable reference for related

researches

PART II II: LITERATURE REVIEW

- is less likely to look for work elsewhere – expects to stay with the company both in the short- and long-term,

- would recommend working for the company to others – proud to be working for the company,

- is interested in doing her/his best, and make an extra effort when required – this relates to the individual employee’s performance and contribution to the company value,

- develops strong relations to the company – temporary dissatisfaction with the job is accepted,

- is interested in improving her/his own performance – offers suggestions for improvement, interested in participating in various training and educational activities, etc.,

- has an attitude and behaviour that match the company’s values, visions and goals

In short, a loyal employee is defined by her/his identification with involvement in and commitment to the company, and by being motivated to perform beyond expectations

1.1.2 Review of Relevant Theoretical Models

1.1.2.1 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" in Psychological Review Maslow subsequently extended the idea to include his observations of humans' innate curiosity His theories parallel many other theories of human developmental psychology, some of which focus on describing the stages of growth in humans Maslow used the terms Physiological, Safety, Belongingness and Love, Esteem, Self-Actualization and Self-Transcendence needs to describe the pattern

that human motivations generally move through

Figure 2 : Maslow's hierarchy of needs 1.1.2.2 Herzberg's motivation-hygiene 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 psychologist Frederick Herzberg, who theorized that job satisfaction and job dissatisfaction act independently of each other

Two-factor theory fundamentals: Attitudes and their connection with industrial mental health

are related to Abraham Maslow's theory of motivation

Two-factor theory distinguishes between:

Motivators (e.g challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or

behavior, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management

"This theory emphasizes the needs for organizations to relate rewards directly to performance and to ensure that the rewards provided are those rewards deserved and wanted by the recipients."

Victor H Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities, a process controlled by the individual 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 Motivation is a product of the individual’s expectancy that a certain effort will lead to the intended performance, the instrumentality of this performance to achieving a certain result, and the desirability of this result for the individual, known as valence

Expectancy theory proposes that an individual 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 In essence, the motivation of the behavior selection is determined by the desirability of the outcome However, at the core of the theory

is the cognitive process of how an individual processes the different motivational elements This is done before making the ultimate choice The outcome is not the sole determining factor in making the decision of how to behave

1.1.2.4 Equity theory

Equity theory is a theory that attempts to explain relational satisfaction in terms of

perceptions of fair/unfair distributions of resources within interpersonal relationships

Considered one of the justice theories, equity theory was first developed in 1963 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1965) The belief is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationships of their co-workers and the organization The structure of equity in the workplace is based on the ratio of inputs to outcomes Inputs are the contributions made

by the employee for the organization

The three primary assumptions applied to most business applications of equity theory can be summarized as follows:

(1) Employees expect a fair return for what they contribute to their jobs, a concept referred to

as the “equity norm”

(2) Employees determine what their equitable return should be after comparing their inputs and outcomes with those of their coworkers This concept is referred to as “social

comparison”

(3) Employees who perceive themselves as being in an inequitable situation will seek to reduce the inequity either by distorting inputs and/or outcomes in their own minds (“cognitive distortion”), by directly altering inputs and/or outputs, or by leaving the organization (Carrell

and Dittrich, 1978)

1.2 Overview of employees’ loyalty researches

Overview of employees’ loyalty researches

Vũ Khắc Đạt (2008) researched factors that affect employees’ loyalty in Southern Viet Nam Offices of VietNam Airline and thought that there are six following ones:

(1) Leadership

(2) Human relations and values

(3) Personal development and competencies

(4) Job contents

(5) Creativity and innovation

(6) Customer orientation

After synthesizing some staff and leaders of some hotels and basing on Vũ Khắc Đạt’s researches

on employees’ loyalty in the Southern Viet Nam Offices of VietNam Airline, my subject will focus

on researching such factors: salary, colleague, award, benefit, training and developing opportunities and how they affect to employees’ loyalty

Salary

Salary is a cost, also a kind of properly The cost reflects through labor cost In services sector, labor cost occupies about 50% of total cost However, salary is also a kind of property because it forces staff attempting It is a potential that can affect employees’ work behavior, can make employees working more effectively Salary helps employees improve their work, increase productivity and the percent of employees quitting their job will be lower

Some companies want to be on top of well-paid list companies They want to attract talented people They believe paying salary higher than other companies will attract higher potential applicants

There are companies that apply the policy of paying salary lower than the general current There are two reasons why these companies do that:

- First, they are in tough financial condition

- Second, they think that there is no need to use good workers to do simple jobs But researches proved that paying low salary doesn’t mean they can save a part of labor cost On the contrary, these companies will be costed more because employees will work ineffectively, the rate of good worker leaving will be higher , they will seek other company that pays them more

According to Trần Kim Dung (2003) , remuneration is always one of tougest problem for CEOs Companies have a lot of various perspective and target when arranging the payment system, but generally, they are directed to 4 basic targets:

Attracting staff: proposed salary is one of the most basic factors for applicants to decide whether they should accept the jobs or not), the more salary companies pay, the more attraction they have to attract the local potential applicants

Keeping good staff: to keep good employees, paying high salary is not enough, companies must show the fairness inside the organization When employees find that their company pays them unfairly, they usually feel uncomfortable, be inhibited and be depressed, even leave the company Stimulating, encouraging staff: if employees find that companies’ policies and activities will not commensurate with their effort, hard working; they will stop trying, gradually, it will form inertia in all employees

Meeting all law issues: basic law issues related to paying salary in company usually focus on the following issue: the regulations of lowest salary, time and work condition, regulations of child labor, allowances, regulations of social benefit such as social insurance, sick leave, maternity leave, occupational accident )

Colleague

People get a lot of things from work rather than only money and visible achivements For most of laborers, job also have to satisfies their interaction needs Therefore, it is not surprised that when having good parners will increase the satisfaction in work Leader’s behaviors is also an essential factor that create satisfaction Satisfaction of labors increases when their leader is knowledgeable, friendly, paying compliment at the right time, good listener and paying attention to his employees’ benefits (Nguyễn Hữu Lam, 1996)

To make employees working with all their heart, communication arts between superior and subordinate is very important The more CEOs create friendly, truthfully environment, good

relationship, behave courteously, respect their staff, listen their opinions, don’t force them by power but by real prestige; the more their talent will be promoted , stimulate them working hard and more efficiently

Rewards:

All employees want to be rewarded for their dedications or contributions with certain ways Workers can not only receive from organizations money, but also to confirm that none of the people work for the money Money will be powerful factors for workers with low qualifications and those who pursue wealth material , but money has impacted little to those who prefer to do the challenging job Therefore, the reward should aim at individual demands of the employees

Expectant theory indicates that the employee will not pursue the rewards when they found the reward is unattainable Thus, the material incentives must be designed in the way that it will create workers’ confidence in the associated labor between effort and reward Thus, the material incentives must be designed in the way that it will create workers’ confidence in the association between reward and effort

Moreover, the reward must show individual fairness (compare the spent efforts with gotten reward) and social justice (compare your efforts and reward with others’ in the same conditions) If the reward does not bring labors a awareness of justice, it is difficult to have good activities for labors

Benefits:

According to Tran Kim Dung (2003), welfare show the concern of the enterprise to labors’ lives and stimulate the employees’ faith and their strong attachment to the enterprise The welfare of the enterprise includes: Social Security and health insurance; retirement; furlough, holiday; lunch sponsored by enterprises; enterprise’s allowance for workers with many children or with disadvantage; enterprise’s gifts for employees on birthdays, weddings, employees’ longevity parents

For Nguyen Huu Than (2001), welfare consists of two main parts: the welfare under the law and the welfare that companies volunteer to apply a part to stimulate employees to work, and partly to maintain and attract talented people to work for the company Voluntary welfare is health insurance programs, services, the program paying harmful allowance and other subsidies such as subsidies to establish children care centers while their parents work or program diagnosing and treating hypertension Each company has many initiatives about the different types of welfare, but all have a common goal is to encourage employees to work, and to be much more close- knit with companies

Training opportunities and promotion

Training and development are to help employees update skills, new knowledge, and they can successfully apply technological changes, technology in the enterprise Besides, they help employees get the necessary skills for opportunities for advancement and replace the management staff, the necessary speciality

Satisfaction of the training and development demand for staffs will stimulate them to conduct better, achieve better achievements, and want to be given the tasks with more challenge and many opportunities for advancement better Therefore, training is viewed as a basic factor to meet the strategic objectives of the organization Quality of the staffs has become one of the competitive advantages of enterprises, and so enterprises should focus on training policy and create opportunities for employees to develop themselves (Tran Kim Dung, 2003)

Figure 3 shows the conceptual model of employee loyalty It is developed partly on the basis

of the theories within the area, partly on the basis of experiences from practice (Eskildsen & Dahlgaard, 2000; Eskildsen & Nussler, 2000; Graversen, 1992; Hackman & Oldham, 1980; Herzberg, 1987; Herzberg et al., 1974; Martensen et al., 2000; McGregor, 1960, 1990; Schein,

1965; Smith et al.,1969; Spector, 1997; Voyles, 1999; Weiss et al., 1967)

Figure 3: The Estimated Model of Employee Loyalty

The three variables to the right of Figure 3 are the results areas:

Job satisfaction

Perceived contribution to the company value

The six variables to the left of the model should be viewed as determinants for the results areas

The determinants are:

Leadership

Human relations and values

Personal development and competencies

In the following, we will briefly discuss each of the nine latent variables

(1) Leadership

(2) Human relations and values

(3) Personal development and competencies

Based on the practical operation, the Mövenpick Hotel Saigon will use six variables for monitor and controlling employee loyalty, thesis theme designed research model as follows

Figure 4: Research model

The assumptions of the model

• H1 (+): High salary makes the employees more loyal to the company

• H2 (+): Colleague encouragement makes the employees more loyal to the company

• H3 (+): Good reward makes the employees more loyal to the company

• H4 (+): Benefit assurance makes the employees more loyal to the company

• H5 (+): Training and promoting opportunity makes the employees more loyal to the

H5

Employee loyalty

Chapter 2: Analysis Factors Affecting The Employees Loyalty At Movenpick Hotel Saigon

2.1 Mövenpick Hotel Saigon

Mövenpick Hotel Saigon

253 Nguyen Van Troi Street, |Ho Chi Minh,|Vietnam

Modern design and comfort in Saigon

A focal point of the bustling Phu Nhuan District, the Mövenpick Hotel Saigon is a minute drive from Tan Son Nhat International Airport The city centre can be reached in

278 well-appointed rooms and suites

5 unique restaurants and a bar

Conference rooms for up to 450 persons

Gym and wellness studio, pool

Near public transport, shopping

Modern rooms and suites

The Mövenpick Hotel Saigon in Ho Chi Minh City offers 278 well-appointed modern rooms and suites, including 34 connecting rooms All rooms are equipped with LCD flat screen TVs and offer a wide selection of international cable TV channels A minibar, individual safe, tea

and coffee service are standard amenities, and Wi-Fi connectivity is accessible throughout the hotel.

Deluxe Room - 1 king bed

Deluxe rooms offer a king-size bed in

a contemporary design on an area of 34

Deluxe Room - twin beds

Deluxe rooms with 2 single beds are

held in a contemporary design on an

Deluxe Family Room - 1 king bed

Deluxe rooms offer a king-size bed and

sofa bedheld in a contemporary design

Executive Room - 1 king bed

Executive rooms offer 1 king-size bed

in a luxurious design on an area of 34

Executive Suite - 1 king bed

Situated on the top floor of the hotel,

the Executive Suite offers a separate

bed and living room area on a space of

Grand Executive Suite - 1 king bed

Situated on the top floor of the hotel,

the Grand Executive Suite offers a

separate bed and living room area

Key Features

Lounge access

Living and dining area

Flatscreen TV

Restaurant and bar

An array of eclectic dining options awaits you at Mövenpick Hotel Saigon that embody our passion for vitality and freshness with food

Designed to offer choice, Mövenpick Hotel Saigon restaurants, bar and bakery reflect our appreciation of food and beverage diversity, as we provide you with flavours and experiences from Vietnam to Asia and around the globe

Mövenpick Hotel Saigon menus reflect our appreciation of the freshest and healthiest local produce offering delicious flavours to suit all tastes and palates

Café Saigon is a unique buffet style

All Day Dining restaurant that

combines freshness with unique

recipes

Fresh local produce

Themed buffets

Open 7 days for breakfast

Lunch and dinner

Live cooking and serving stations

Fresh live seafood

Cay Da Café is the ideal location for

a quiet meeting or to unit with

friends over a relaxing coffee

Home-made ice cream

Coffee and specialty teas

Tea freshly made

Cakes and pastries

Freshly made sandwiches

Pies and deli items

Iki: The hippest modern Japanese

Restaurant in Saigon Combining a

trendy design and an affordable

menu with a fun atmosphere

Fresh sushi

Modern Japanese cuisine

Open 7 days for lunch and dinner

Affordable menu hot pots

Lotus Court: Enjoy traditional

Cantonese Cuisine served with a

modern twist in an authentic Chinese

atmosphere

Dim Sum

Cantonese cuisine

Open 7 days for lunch and dinner

Authentic Chinese design and

atmosphere

Private dining rooms

Slate - the Bar is theperfect venue

for a pre or after dinner drink

Choose from over 30 varieties of

Martinis complimented by a casual

food menu known for its freshness

and simplicity served with a modern

twist

Over 30 Martinis

Chi Modern Bar

Fresh, simplistic food

DJ and Live Music

Enjoyment in a vibrant atmosphere

Meetings rooms

With a grand ballroom capable of accommodating 450 guests, three additional function rooms and one boardroom, the Mövenpick Hotel Saigon has the facilities for your group on business trip or conference, whatever its size And our Mövenpick Meet & Dine experts make

successful meetings and other functions easy for you

Ballroom 1: Modernly designed

pillar-less ballroom seats up to 128

guests offering 142 sqm, and a

pre-function area

Modern

Pillar-less

High-ceiling

Large pre-function area

Accessible via grand staircase

Ballroom 2: Modernly designed

pillar-less ballroom seats up to 84

guests offering 98 sqm with a

pre-function area

Modern

Pillar-less

High-ceiling

Large pre-function area

Accessible via grand staircase

Ballroom 3: Modernly designed

pillar-less ballroom seats up to 84

guests offering 98 sqm with a

pre-function area

Modern

Pillar-less

High-ceiling

Large pre-function area

Accessible via grand staircase

Boardroom 1

Modernly designed boardroom seats

up to 14 guests offering the latest AV

Modernly designed boardroom seats

up to 14 guests offering the latest AV

Boardroom 3

Modernly designed boardroom seats

up to 16 guests offering the latest AV

Modern in design, our pillar-less

grand ballroom accommodates up to

460 guests offering 338 sqm

Modern

Pillar-less

High-ceiling

Large pre-function area

Accessible via grand staircase

Meeting Room 1

Modern pillar-less meeting room

seats up to 110 guests offering 116

sqm with a pre-function area

Modern pillar-less meeting room

seats up to 110 guests and offers 102

sqm and a pre-function area

Wellness at the Mövenpick Hotel Saigon

Wellness facilities

Kinetic Gym and Wellness Studio -

a sanctuary of relaxation and

renewal Highlights include a large

outdoor swimming pool with sun

lounger zone, gym with state-of-art

equipment powered by Techno-gym

and 3 treatment rooms providing a

range of pampering and relaxation

experiences

Wellness special offers

The Mövenpick Hotel Saigon offers

a range of pampering and relaxation

experiences which will have you

looking and feeling your best

From a pedicure to a relaxing

aromatherapy body massage, all

treatments are designed for you to

experience complete renewal

This section provides an overview, results and evaluation of respondents towards the

employees who are working in this hotel Researchers have interpreted the questionnaires results in the form of tables and figures

2.2.1 Evaluation of scale reliability and factor analysis

Evaluation of scale reliability

The reliability of the scale was assessed by Cronbach alpha coefficients were calculated from the data analysis using SPSS software version 16 According to Hoang Ngoc Trong and Nguyen Mong Chu (2008) "Many researchers agreed that the Cronbach alpha from 0.8 up to nearly 1, the measurement scale as well, from 0.7 to 0.8 is used near been Researchers also suggest that Cronbach's alpha is greater than or equal to 0.6 can be used in case of

measurement scale concept is new or new to the respondents in the context of research

(Nunnally, 1978; Peterson , 1994; Slater, 1995) " For this thesis, the observed variables have

a correlation coefficient of variables - the total is greater than or equal to 0.3 that the variable

is acceptable and Cronbach alpha is greater than or equal to 0.6, the scale is acceptable and satisfactory (Nunnally & Bernstein 1994)

Coefficient of Cronbach’s Alpha

Table 1: Coefficient of Cronbach’s Alpha

Exploratory Factor Analysis (EFA)

In multivariate statistics, exploratory factor analysis (EFA) is a statistical method used to uncover the underlying structure of a relatively large set of variables EFA is a technique within factor analysis whose overarching goal is to identify the underlying relationships between measured variables It is commonly used by researchers when developing a scale (a scale is a collection of questions used to measure a particular research topic) and serves to identify a set of latent constructs underlying a battery of measured variables It should be used when the researcher has no a priori hypothesis about factors or patterns of measured variables Measured variables are any one of several attributes of people that may be observed and measured An example of a measured variable would be the physical height of a human being Researchers must carefully consider the number of measured variables to include in the analysis EFA procedures are more accurate when each factor is represented by multiple measured variables in the analysis

EFA is based on the common factor model Within the common factor model, a function of common factors, unique factors, and errors of measurements expresses measured variables Common factors influence two or more measured variables, while each unique factor

influences only one measured variable and does not explain correlations among measured variables

EFA assumes that any indicator/measured variable may be associated with any factor When developing a scale, researchers should use EFA first before moving on to confirmatory factor analysis (CFA) EFA requires the researcher to make a number of important decisions about

how to conduct the analysis because there is no one set method

Measured by the Kaiser-Meyer-Olkin (KMO) statistics, sampling adequacy predicts if data are likely to factor well, based on correlation and partial correlation

0.5 < KMO < 1.0 it is suitability to proceed with factor analysis but if KMO < 0,5, it not

be able suitable for data (Hoàng Trọng and Chu Nguyễn Mộng Ngọc, 2008)

The steps taken and the results analyzed:

Step 1: exploratory factor analysis 21 observed variables

Cronbach's Alpha test showed that the variables are satisfied the conditions for inclusion

in EFA analysis based on the Eigenvalue standard greater than 1

The analysis results showed that 5 factors were created The total variance extracted = 64 579% (Refer to Appendix 2.2.2) said five factors explain 64 579% of the data variability KMO coefficient = 0.789 (> 0.5), Bartlett's test the value Sig = 0.000 <0.05 which was achieved by the requirements of factor analysis

Table 2 : KMO and Bartlett's Test 1

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0,789 Bartlett's Test of

Table 31 : Rotated Component Matrixa

Your present salary is equivalent to your working efficiency 0,849

Compared to that paid by other hotels, you feel that your

Colleagues are always there to help you 0,717

Colleagues work together effectively 0,835

Leaders always listen to staff’s opinions 0,809

Leaders are always in a polite and affable manner 0,711

Your achievements are always recognized and rewarded

You are rewarded correspondingly to what you have done 0,656

You are rewarded fairly when you have done a good job 0,785

The hotel has clear and effective reward policy 0,841

The hotel has good social insurance and medical insurance 0,671

The hotel’s accident insurance and health insurance bring you

You are satisfied with the company allowance such as: lunch

The benenfit programs of the company are very variable and

Women have the advantage of being elected to receive

You take part in training program based on your working

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization

The analysis results show that, in the 21 variables were included in the analysis EFA, 20

variables have factor loading is greater than 0.5 should be retained model The variable "You are paid high salary" transmission coefficient by 0414 <0.5 should be excluded The

remaining 20 variables were included in the factor analysis second times

Step 2: exploratory factor analysis discovered after the variable type

EFA analysis second times results showed that 5 factors are created The total variance

extracted = 67.036% (Refer to Appendix 2.2.2) said five factors explain 67.036% of the data variability

KMO coefficient = 0.792 (> 0.5), Bartlett's test the value Sig = 0.000 <0.05 which was

achieved by the requirements of factor analysis

20 variables were included in the analysis are the transmission coefficients greater than 0.5

should be retained and used models for subsequent testing

Table 4 : KMO and Bartlett's Test 2

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0,792 Bartlett's Test of Sphericity Approx Chi-Square 1,331E3

Table 5 : Rotated Component Matrixa

Your present salary is equivalent to your working efficiency 0,845

Compared to that paid by other hotels, you feel that your

Colleagues are always there to help you 0,737

Colleagues work together effectively 0,837

Leaders always listen to staff’s opinions 0,822

Leaders are always in a polite and affable manner 0,704

Your achievements are always recognized and rewarded

You are rewarded correspondingly to what you have done 0,659

You are rewarded fairly when you have done a good job 0,783

The hotel has clear and effective reward policy 0,841

The hotel has good social insurance and medical insurance 0,677

The hotel’s accident insurance and health insurance bring you

You are satisfied with the company allowance such as: lunch

The benenfit programs of the company are very variable and

Women have the advantage of being elected to receive

You take part in training program based on your working

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization

Explain factors:

The interpretation of the factors will analysis on the basis of realized variables observed have factor loading large located in same factor Thus, this factor can be explained by the large

number of variables in its system

+ The first factor comprises three variables: "Your present salary is equivalent to your

working efficiency.", "You are satisfied with your present salary", "Compared to that paid by

other hotels, you feel that your salary is high" This factor is Salary

S1 Your present salary is equivalent to your working efficiency

S2 You are satisfied with your present salary

S3 Compared to that paid by other hotels, you feel that your salary is high

+ The second factor comprises four variables: "Colleagues are always there to help you ",

"Colleagues work together effectively.", "Leaders always listen to staff’s opinions", "Leaders are always in a polite and affable manner " This factor is Colleagues

C1 Colleagues are always there to help you

C2 Colleagues work together effectively

C3 Leaders always listen to staff’s opinions

C4 Leaders are always in a polite and affable manner

+ The 3rd factor comprises four variables: "Your achievements are always recognized and

rewarded timely", " You are rewarded correspondingly to what you have done", "You are

rewarded fairly when you have done a good job", "The hotel has clear and effective reward

policy" This factor is Rewards

R1 Your achievements are always recognized and rewarded timely

R2 You are rewarded correspondingly to what you have done

R3 You are rewarded fairly when you have done a good job

R4 The hotel has clear and effective reward policy

+ The fourth factor comprises five variables: "The hotel has good social insurance and

medical insurance", "The hotel’s accident insurance and health insurance bring you real

benefit", "You are satisfied with the company allowance such as: lunch allowance, birthday gifts", "The benenfit programs of the company are very variable and attractive", "Women

have the advantage of being elected to receive promoting opportunities" This factor is named Benefits

B1 The hotel has good social insurance and medical insurance

B2 The hotel’s accident insurance and health insurance bring you real benefit

B3 You are satisfied with the company allowance such as: lunch allowance,

B4 The benenfit programs of the company are very variable and attractive

B5 Women have the advantage of being elected to receive promoting

OP1 The hotel pays attention to staff training

OP2 You take part in training program based on your working nature

OP3 You have many promoting opportunities

OP4 Promotion policy is very fair

Research model ( Adjusted)/ Proposed Theoretical

Thus, after analysis a factor, the original model was retained five independent factors: salary,

colleagues, Awards, Benefits, Training and promotions

Figure 5: Research model ( Adjusted)

2.2.2 Regression Analysis

Analysis Results

Based on the finding, researchers proposed that five independent variables which are salary, colleagues, Awards, Benefits, Training and promotions that may affect the employee loyalty (dependent variable) in the hotel This study attempts to investigate the possible relationship between and among those variables

H5

Employee Loyalty

(X5) : Training and promotions

(Y) : employee loyalty

The assumptions of the model

• H1 (+): High salary makes the employees more loyal to the company

• H2 (+): Colleague encouragement makes the employees more loyal to the company

• H3 (+): Good reward makes the employees more loyal to the company

• H4 (+): Benefit assurance makes the employees more loyal to the company

• H5 (+): Training and promoting opportunity makes the employees more loyal to the company

Table 62 : Correlation matrix

REGR factor score

REGR factor score 1 for

General assessment of the

impact of these factors to your

loyalty

Pearson Correlation 0.281

Level of Significance

Statistics multicollinearity

β

The standard deviation

Employee loyalty = 3,924+ 0.120*Salary + 0.325* Benefits + 0.079* Promotions + ε

Testing the hypothesis

Based on the results of the regression analysis, we have:

Salary factor is the 2nd largest factor affecting to employee loyalty Mövenpick Hotel Saigon

Positive sign of the beta coefficients show the relationship between salary and elements loyalty relationship in the same direction The regression results showed that the beta = 0.120 and Sig = 0.000 (<0.05) demonstrated, when other factors constant, if salary increased by 1 unit, loyalty increased 0.120 units

Hypothesis H1 is accepted

Benefit factors have the greatest impact to employee loyalty at hotel (as the highest beta

coefficient) Positive sign of the beta coefficients show the relationship between benefits factors and loyalty factor which relationship in the same direction The regression results show that beta = 0.325 and Sig = 0.000 (<0.05) demonstrated, when other factors constant, if the benefits factor increased by 1 unit, loyalty factor increase 0325 unit

Hypothesis H4 is accepted

Training and promoting opportunites are factors that affect the smallest to the loyalty of staff

of the hotel, (as the smallest beta coefficient ) Positive sign of the beta coefficients show the relationship between Training and promoting opportunites factor and elements loyalty factor

= 0.079 and Sig = 0.000 (<0.05) demonstrated, when other factors constant, if the Training and promoting opportunites factor increased by 1 unit, loyalty increased 0.079 units

Hypothesis H5 is accepted

Assess the appropriateness of the regression model

Table 8 : Assess the appropriateness of the regression model

R2 Adjusted

Standard error estimates

Watson

R = 0.834 shows the relationship between the variables in the model correlates quite closely Adjusted R2 = 0.690, concluded that the linear regression model was constructed in accordance with the data set to 69.00%, and this model explains 69.00% of the change in the dependent variable due to the variable of three independent variables mentioned above This means that the factors affecting loyalty of employees to the hotel, then to 69.00% came from three factors mentioned above Therefore, if the Mövenpick Hotel Saigon want to further improve employee loyalty that is one of the most important issues that the hotel should focus

on improving these factors

Testing the fit of the regression model

Table 9 : Testing the fit of the regression model