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

UNIVERSITY OF ECONOMICS HO CHIMINH CITY HUYNH NHAT PHUONG FACTORS AFFECTING EMPLOYEES’ MOTIVATION IN HOTEL INDUSTRY IN HO CHI MINH CITY MAJOR: BUSINESS ADMINISTRATION MASTER OF BUSINESS

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

MASTER OF BUSINESS ADMISTRATION THESIS

SUPERVISOR: DR TRAN HA MINH QUAN

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 hiseffort in thoroughly guidance, encourage and support to every student throughouttwo-year-course

Thirdly, this research was contributed by my classmates, my colleagues, and wasmoral 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

Within 10 years, hotel industry in Ho Chi Minh city has developed impressively andhas quite highly demanded in employing labor force Working environment is stableand professional is one of many attractive points of hotels, but it contains manycharacteristics 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’smotivation The result showed that recognition, development, supervisor andpromotion are four factors which affecting to hotel employee’s motivation in HoChi Minh city context

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

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 25Figure 3.1 Research process 26Figure 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 INTRODUCTION1.1 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 sixmillion foreign travellers, which increases 19.1% compared with last year data Thatresult has contributed to general development of hotel industry This field had beenattracting nearly 11 billion USD with 247 projects up to 2009; ranked the 3rd afterindustrial processing, manufacturing and real estate The more development in hotelindustry, the more demand of labor force in this field But hotel industry is a kind ofservice industry, whose products created from human’s contact, owned uniquecharacteristics Seasonableness is a stand out characteristic, which influences to laborforce 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 permanentemployees The consequence is an unstable labor force, demotivated part-timeemployees and negative influence to performance of permanent staff

Customer target in hotel is tourists, who come from different countries, whichowned different cultures, hobbits, customs, etc Servers, who directly contact withcustomers, need to understand their requirements in order to assure quality service.The consequence is the stressful job toward servers In addition, employees in hotelare 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 areunder 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 milliondollars in recruiting, orientating, training, etc if they own an unstable workforce

Without continuity in customer relationship, organization does not have customerloyalty, stressful management, conflict happens easily and low efficiency Thosemake difficult for company to compete on marketplace Hence, constructing a goodpolicy to motivate and retain good performance employees, who can create uniqueexperiences and relationships with customers, is an important mission A stableworkforce is a significant competitive advantage “Customer relationships arestronger when an organization’s workforce is stable and customers can depend onthe company people – the continuity of their product knowledge, industryexperience and proven performance.” (Kreisman, 2002).

There have many researches, conducted in many countries, found out factorsaffecting to employees’ motivation in hotel industry in general With a speed-up indeveloping hotels, needs of recruiting new employees and retain good performanceones, studying about motivation in hotel in Vietnam is necessary in order toimprove competitive advantage in market This study raises research objectivesabout 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 employeeswho 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 inhotel industry In reality, this research will help Managers who working in hotelindustry in decision making in human resource management, creating appropriatedecisions in managing, in order to increase productivities and employees’motivation level Otherwise, the result of this research has contributed to humanresources 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 identifyingsignificant motivational factors in this paper

Chapter 3 – Research method: this chapter consists research process, measurementscale, the pilot test and the main research which was conducted

Chapter 4 – Data analysis: this chapter describes how each measurement scale wasevaluated and the result of testing hypothesis It consists of sample description,measurement scale data analysis, regression analysis and evaluating the impact ofpersonal characteristic on employee motivation

Chapter 5 – Conclusion and Recommendation: this chapter presents briefdescription 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 orneed 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 aperson to engage in particular behaviors” Pinder (1998) describes work motivation

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

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

In generally, most of definitions of motivation are related to unsatisfied needs ofemployees, under influences of intrinsic and extrinsic factors, forces employees toengage to a particular behavior in order to reach their goals and satisfy their needs.The psychology of motivation is tremendously complex (Herzberg, 1987) Theoriesabout 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 AbrahamMaslow 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 aadvice for managers is finding ways of motivating employees by devising programs

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

2.2.2 McClelland’s Need Theory

In the publication “The Achieving Society” in 1961, McClelland described thetheory of needs focusing on three needs: achievement, power and affiliation Theneed for achievement was defined as the drive to excel, to achieve in relation to aset of standards, to strive to succeed The need of power was defined as the need tomake others behave in a way that they would not have behaved otherwise The needfor affiliation was defined as the desire for friendly and close interpersonalrelationships McClelland proposed that high achievers are more likely to besuccessful entrepreneurs The need of affiliation suggested that people have thedesire to spend time in social relationships, join group, and wanting to be loved Theneed of power reflects an individual’s desire to influence, coach, teach, orencourage 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 wasdeveloped by Frederick Herzberg, a psychologist, who theorized that jobsatisfaction 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:

If organization wants to motivate people on their jobs, Herzberg suggestedemphasizing factors associated with work itself or to outcomes directly derivedfrom it, such as promotional opportunities, personal growth, recognition,responsibility and achievement These are the characteristics that people findintrinsically 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; whatMaslow 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 esteemneed

Growth refers to an intrinsic desire for personal development; the intrinsiccomponent of Maslow’s esteem need, and self-actualization

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

2.2.5 Equity theory

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

2.2.6 Expectancy theory

Expectancy Theory proposes that a person will decide to behave or act in a certainway 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 governingchoices among alternative forms of voluntary activities, a process controlled by theindividual (Exhibit 2.4) The individual makes choices based on estimates of howwell the expected results of a given behavior are going to match up with oreventually lead to the desired results There are three mental components that areseen 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 byDouglas McGregor in the 1960s They describe two contrasting models ofworkforce 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 achieveorganizational objectives, a business would need to impose a management system ofcoercion, 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 aworking 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 andappropriate feedback In 1990, Locke and Gary Latham, who studied the effect ofgoal setting in the workplace, published their seminal work, “A theory of GoalSetting and Task Performance” To motivate, goals must have five principles asbelow:

2.2.9 Job Characteristics Model

The Job Characteristics Model (JCM) (Exhibit 2.6), as designed by Hackman andOldham attempts to use job design to improve employee motivation the JSMproposes 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 withother people

There are some strategies in job design in order to increase work motivation, suchas: Job enlargement, Job enrichment, Job rotation, work at home or flexibleworking 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, inorder to determine which factor affecting to employee’s motivation in each specificcircumstance According to studies, papers conducted in general and hotel sector,which were reviewed in this research, there are four motivational factors which arerepeated 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, commitmentand retention has sorted factors which make employee motivational behavior intotwo groups The first one which belongs to individual concept are: needs, value andbeliefs, knowledge and skills, motivation and their interpersonal style The secondone 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 toorganization’s commitment In this paper, she specially emphasized role ofmanager’s control, which drive employee satisfaction and commitment Manager’scontrol includes “providing recognition and feedback, the opportunity to learn andgrow, fair compensation reflecting an employee’s contributions and value to theorganization, providing a good work environment, and above all, recognition andrespect for the uniqueness of each person’s competencies, needs, desires and style.”.Buckingham and Coffman (1999) points manager’s role in employee’scommitment, that is they must have good communicate skills, providing positivefeedback in order to develop their staff’s strengths and overcome weaknesses Thereare many reasons for employee resigning cited in studies of Buckingham andCoffman (1999); Kaye and Jordan-Evans (1999); Kreisman (2002); Herman (1999),and the most popular reason was given is bad relationship between manager andemployee Hence, managers and their management ways play a signification andimportant 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 stafffairly; second, encourage honest and transparent communicate about employee’sinputs and outputs in order to avoid dissatisfaction Manager’s role in Adam’sequity theory plays an important role because of its moderator position fromindividual effort to individual goals through recognition If employee’s effort is notrecognized 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 insetting goal in order to motivate their employee Borkowski (2009) points thatalthough goal-setting is a simple concept but it requires careful planning andmonitoring by managers Positive feedback and coaching in approximate time isnecessary to motivate employee working toward a specific goal.

From above literatures, management was supposed to affect to employee’smotivation 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’shierarchy of needs It is necessary condition in supporting employees work betterand more effective In Herzberg theory, working conditions has more characteristics

of a hygiene factor than a motivational factor However, there are many studieswhich conducted in hotel area, supposed that working conditions is a motivationalfactors 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 toworking conditions “There are many models assume that if employees enjoy theirworking 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 DiagnosticSurvey, based on motivation theory of Hackman and Oldham (1980) JobCharacteristics Model, was conducted and recommended in practice Using simpleJob Diagnostic Survey with 21-question version instead of the initial 87-questionversion, managers can construct job profiles for each department If any Core JobDimension receiving low score, the practical action taken The formula formotivation potential score (MPS) is given to compare with existing industrial normsand organization norms This applied survey will help managers find out their

managing “weakness”, in term of working conditions, and action taken toovercome.

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

in predicting overall job satisfaction Working environment is place of harmoniousworking relationships between colleagues, unambiguous human resource policies,and opportunities for employee development exist (Terry Lam et al, 2001) Highdegree of autonomy of line employees or assistant managers is encouraged in thispaper They should be given more power to make their own decision in restaurantoperations, dealing with customers or other colleagues, be encouraged to come upwith 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 themanagement to motivate employees to stay on the job, by ensuring measures atenhancing the working condition to counter turnover” Their study about quality ofwork –life (QWL) in hotel sector and they identified eight dimensions of QWL: jobcharacteristics, person-job fit, company image, HR policies, physical workingconditions, 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 directhis or her efforts to achieve the goal (Nel et al, 2004) So goal-setting is supposed toincrease motivation (Daft and Marcic, 2009)

From above studies which were conducted before, the second hypothesis in thisstudy 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’smotivation The recognition and respect is considered as “esteem needs” inhierarchy of Maslow’s need theory That is the thing employee would like to receivefrom organization for their efforts According to Hertzberg (1987), recognition isone of five dimensions of strong satisfaction, which lead to motivation, and itbelongs to extrinsic motivation Achievement, recognition together the job itself,responsibility and feedback are all motivators in study of Nel at al (2004) Thesekind 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 theirperformance formally or informally, etc An important point are made by Kreitner

& Kinicki (2008) about inequity recognition If employees recognizes that theireffort 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 reasonemployees 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 manydifferent methods of learning that benefit employees and organization alike”(Simonsen, 1997) Development not only be promoted, but also be provided achallenge, new learning opportunities or new tasks which contribute on skills

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

The job should be designed for “enlarging” or “enriching” to account fordeficiencies of skill variety, autonomy and agent feedback (Lee-Ross, 1998) Inhotel sector’s practice, cross-training is encouraged for most of employees whoready to improve their skills and “know-how” knowledge Training is offered inmost of hotels in order to remind operation standards, introduce new products orservices skills This is a good investment to people when there are many evidenceshow that training activities are correlated with productivities and retention(Moncarz et al, 2009) Moncarz et al (2009) cited in Youndt et al (1996) point thathuman resource practices developing talent and team-oriented workers improveemployee productivity and customer satisfaction Hotels should focus on trainingand developing for their exist employees instead of waste cost on hiring ororientation new employees, this would increase employee motivation, retention andjob satisfaction (Rashid, 2010, cited in Paswan et al, 2005)

Hence, based on previous researches about affecting of development on employeemotivation, 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:

H1 Management

H2 Working conditions

EMPLOYEES’ MOTIVATION

H3 Recognition

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.

Figure 3.1 Research process

Conclusion and Recommendations

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 discussiontechnique 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 wasused to check the content and meaning of words which were used in themeasurement scale

The interviewees who joined in group discussion study understood the content andmeaning of each statement of measurement scales The pilot study would help tocreate 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 officialquestionnaires 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

3.4.1 Sampling

Hair et al (1994) pointed out the minimum sample size is equal or larger 5 time ofvariables This study has 31 variables so the minimum sample size is: n= 31 x 5 =155

3.4.2 Data collection

The primary data will be collected through questionnaires which sent directly or viaemails The secondary data sources from books, articles, newspaper, businessmagazines and websites

3.4.3 Data analysis method

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

3.4.3.1 Reliability

Cronbach’s Alpha is used to compute the internal consistency reliability for multipleitem 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 wasgreater 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 Cityanswered the questionnaires There were 270 questionnaires sent out and 222qualified questionnaires were used for data analysis The usable response rate to theresearch is therefore 92.5 percent

4.1.2 Demographic Statistics

Table 4.1 Demographic Statistics of the Respondents

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 haveCronbach’s Alpha coefficient greater than 0.6 and correlation coefficient ofvariations (Corrected Item-Total Correlation) are greater than 0.4 Therefore, all ofthose 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 Scale Variance

Corrected

Cronbach’s Alpha if Item-Total

Item Deleted if Item Deleted Item Deleted

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 theunderlying structure for the twenty three items of the Employees’ Motivationquestionnaires Five factors were extracted After rotation, the first factor accountedfor 43.609% of the variance, the second factor accounted for 8.291% of thevariance, the third factor accounted for 6.103% of the variance, the fourth factoraccounted for 5.201% of the variance and the fifth factor accounted for 4.005% ofthe variance Table 4.5 displays the items and factor loadings for the rotationfactors, with loading less than 0.5 omitted to improve clarity See more at Appendix2

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 becausefactor 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 tohelp out, employees’ performance feedback from supervisor and how supervisorlistens their employees, etc So the first factors was named as SUPERVISOR

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

RECOGNITION R1 People are rewarded for meeting customer-quality assurance goals (Variance explained: R2 The compensation / benefit system that is communicated to 8.291%) employees.

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, jobrotation, setting goals Item M9 was spilt out of factor Management and was addedinto this new factor Two items J6 and J7 related to setting goal for careerdevelopment, which initially belong to Working Conditions, were added into newfactor So, it was still reasonable when these items were combined in factorDEVELOPMENT

DEVELOPMENT M9 I am received additional training when needed

(Variance J6 My manager and I have discussed my individual goalsexplained: 6.103%) for each year / semiannual

J7 My manager and I have identified ways I can develop in

(Variance explained:

43.609%)

SUPERVISOR

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 andadded into this factor Item M8 had meaning suitable to this factor’s content Hence,adding item M8 to Working conditions factor was acceptable

WORKING M8 I am received enough instructions to do job well.

CONDITIONS J1 I have the materials and equipment I need to do my work right.

(Variance

J2 Progress and procedure allow me to effectively meet my customers’ explained: 5.201%)

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 isconsidered as an effective tool to retain employees and motivate them Promotioncan be used to reward past employee efforts, promote investments in specific humancapital and low job turnover (Lazear, 1998) If the employees are offeredopportunities to growth and get promoted, they will be satisfied and be moremotivated For this reason, promotion may had significant affecting to employees’motivation in this study The two items created the last factor: PROMOTION

PROMOTION L4 My company posts job openings so existing employees can apply (Variance explained: L5 My company supports promotion employees from within.

4.005%)

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, MOT5had loading factor is greater than 0.5, KMO is 0.821, Barlett’s Test had significancelevel 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 separatedand been added to become new factors The conceptual framework, because ofabove reason, should been adjusted with five new factors