Organizational culture, employees job satisfaction and turnover intention in the hotel industry in hai phong city

ABSTRACT CORPORATE SOCIAL RESPONSIBILITY, EMPLOYEES’ JOB SATISFACTION, AND TURNOVER INTENTION IN HOTEL INDUSTRY IN HAI PHONG CITY PHAM DUONG KHANH This study is to examine the influe

INDUSTRY IN HAI PHONG CITY

A DISSERTATION PAPER

Presented to School of Graduate Studies Central Philippine University, Philippines

In Collaboration with Thai Nguyen University, Vietnam

ACKNOWLEDGMENTS

It is hard to imagine how this dissertation could have been completed without the encouragement and support from my academic supervisor, family and friends

Firstly, I wish to thank my academic supervisor, Dr Tran Nhuan Kien It is

my honor to receive his guidance, suggestions and feedbacks on each chapter with great patience Even with our distance, the academic discussion has not been prevented Both direct and indirect meetings between us have been really effective These have helped improve my expertise and insights, which finally has improved the quality of this study

Finally, I would like to thank my friends who have shared their research experience, especially in collecting and analyzing the data I also send my loyal thanks to my peers in this PhD course who have brought to me many more experiences in study, work and life as well I really look forward to working with them in the future

Cuối cùng, tôi xin cảm ơn những người đồng nghiệp đã chia sẻ kinh nghiệm nghiên cứu của họ, đặc biệt là trong việc thu thập và phân tích dữ liệu Tôi cũng gửi lời cảm ơn chân thành đến các bạn cùng khóa với tôi trong khóa học Tiến sĩ này, những người đã mang đến cho tôi nhiều kinh nghiệm hơn trong học tập, công việc

và cuộc sống Tôi thực sự mong muốn được làm việc với họ trong tương lai

Thai Nguyen, December 2020

Author of disertation

Pham Duong Khanh

LỜI CAM ĐOAN

Tôi xin cam đoan: Số liệu và kết quả nghiên cứu trong luận án này là trung thực và chưa được sử dụng để công bố cho bất kỳ nghiên cứu nào khác

Tôi cam đoan rằng tất cả những trợ giúp cho việc thực hiện luận án đã được cảm ơn và thông tin trích dẫn trong luận án đều được chỉ rõ nguồn gốc

Thái Nguyên, tháng 12 năm 2020

Tác giả của luận án

Phạm Dương Khánh

TABLE OF CONTENT

ACKNOWLEDGMENTS i

LỜI CẢM ƠN ii

COMMITMENT iii

LỜI CAM ĐOAN iv

TABLE OF CONTENT v

TABLE OF TABLE vii

LIST OF FIGURES ix

ABSTRACT x

CHAPTER I: THE PROBLEM AND ITS SETTING 1

1.1 Background of the Study 1

1.2 Objectives 3

1.3 Hypotheses 3

1.4 Theoretical Framework 5

1.5 Conceptual Framework 8

1.6 Operational Definitions 10

1.7 Significance of the Study 12

1.8 Scope and Delimitation 13

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES 15

2.1 Related Literature 15

2.1.1 Corporate Social Responsibility 15

2.1.2 Job Satisfaction 24

2.1.3 Turnover Intention 28

2.1.4 Corporate Social Responsibility and Employee Job Satisfaction 34

2.1.5 Influence of Corporate Social Responsibility on Employee Turnover Intention 38

2.1.6 The effect of Personal Characteristics on Perception of Corporate Social Responsibility 42

2.2 Related Studies 43

CHAPTER III: METHODOLOGY 49

3.1 Research Design 49

3.2 Research Instruments 51

3.3 Population, Sample Size and Sampling Techniques 53

3.4 Data Collection Procedures 54

3.5 Data Analysis 54

3.6 Pretest 55

3.7 Scale Purifications 57

3.7.1 Item Purification for Perceived Corporate Social Responsibility Scale 57

3.7.2 Item Purification for Job Satisfaction Scale 61

3.7.3 Item Purification for Turnover Intention Scale 62

3.7.4 Scale Reliability 64

CHAPTER IV: DATA PRESENTATION, ANALYSIS AND NTERPRETATION 65 4.1 Respondents‘ Profile 65

4.1.1 Introduction about Hai Phong City 65

4.1.2 Sample Profile 68

4.2 Measurement Model 68

4.3 Hypothesis Testing 75

CHAPTER V: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 86

5.1 Summary 86

5.2 Findings 87

5.3 Conclusion 89

5.4 Recommendations 90

5.4.1 Improve the hotels’ image by paying attention to employees’ families and communities where employees live 91

5.4.2 Improve the hotel image by contributing more to Society 92

5.4.3 Compliance with environmental regulations 93

5.4.4 Pay attention to personal characteristics of employees 93

5.5 Suggestions for Future Research 94

REFERENCES 95

TABLE OF TABLE

Table 1 1 The Scale of Corporate Responsibility for Society 11

Table 1 2 Corporate Responsibility for Environment Scale 11

Table 1 3 Employees‘ Job Satisfaction Scale 12

Table 1 4 Turnover Intention Scale 12

Table 3 1 Factor Pattern and Reliability of Pretest 56

Table 3 2.The Descriptive Statistic Results of Corporate Social Responsibility for Society Scale 58

Table 3 3 Item Purification for Corporate Social Responsibility to Society 59

Table 3 4 The Descriptive Statistic Results of Corporate Social Responsibility to Environment Scale 60

Table 3 5 Item Purification for Corporate Social Responsibility to Environment 61 Table 3 6 The Descriptive Statistic Results of Job Satisfaction Scale 61

Table 3 7 Item Purification for Job Satisfaction Scale 62

Table 3 8 The Descriptive Statistic Results of Turnover Intention Scale 63

Table 3 9 Item Purification for Turnover Intention Scale 63

Table 3 10 Scale Reliability 64

Table 4 1 Distribution of Respondents as to Their Characteristics 68

Table 4 2 Measurement Model Results for Corporate Social Responsibility for Society Scale 70

Table 4 3 Measurement Model Results for Corporate Social Responsibility for Society Scale 70

Table 4 4.Measurement Model Results for Corporate Social Responsibility for Environment Scale 71

Table 4 5 Measurement Model Results for Corporate Social Responsibility for Environment Scale 72

Table 4 6 Measurement Model Results for Satisfaction Scale 72

Table 4 7 Measurement Model Results for Turnover Intention Scale 73

Table 4 8 Measurement Model Results for Turnover Intention Scale 73

Table 4 9 Measurement Model Results 74Table 4 10 Construct Correlation Matrix 75Table 4 11 Mediation Analysis Results for Employee Satisfaction 79Table 4 12 Bootstrapping Results for Indirect Effect of Employee Satisfaction

with CSRS 80Table 4 13 Mediation Analysis Results for Employee Satisfaction with CSRE 82Table 4 14 ANOVA Analysis Results for Perception of Corporate Social

Responsibility toward Society 83Table 4 15 ANOVA Analysis results for Perception of Corporate Social

Responsibility toward Environment 83Table 4 16 ANOVA Analysis results for Perception of Corporate Social

Responsibility toward Society in Term of Working Time Between Group 1 year and Group from 1-3 years 84Table 4 17 ANOVA Analysis results for Perception of Corporate Social

Responsibility toward Environment in Term of Working Time Between Group 1 -3 years and Group above 3 years 84

LIST OF FIGURES

Figure 1 1.The Research Paradigm 10

Figure 3 1 Research Procedures 50

Figure 4 1 Structural Equation Modeling for Research Model 76

Figure 4.2 Direct and Mediation Effect 78

ABSTRACT

CORPORATE SOCIAL RESPONSIBILITY, EMPLOYEES’ JOB

SATISFACTION, AND TURNOVER INTENTION IN HOTEL INDUSTRY

IN HAI PHONG CITY

PHAM DUONG KHANH

This study is to examine the influence of corporate social responsibility on employee job satisfaction and employee turnover intention by clarifying the mediating role of job satisfaction on relationship between corporate social responsibility and turnover intention and is to propose some managerial implications to help hotels in Hai Phong city to improve their performance, to increase employees‘ job satisfaction, and reduce employee‘s turnover intention

This study was conducted among respondents who are employees in hotels in Hai Phong City, in Vietnam Total 401 participants took part in this research Exploratory Factor Analysis (EFA) was used to identify the factors initial items The purification process was conducted to assure that all scales are convergent and reliable The confirmatory factor analysis was also conducted to check the measurement model and showed that all constructs were discriminant and convergent

In this study, the effect of corporate social responsibility on employee job satisfaction was tested The results suggest that corporate social responsibility has a significant influence on employee job satisfaction as it predicted overall job satisfaction The results imply that the hotels with social or environment concern may achieve their employee‘s loyalty

Hotels in Hai Phong City should pay attention to society and environment

to increase employee satisfaction and reduce turnover intention Based on a strong relationship between social corporate responsibility and employee satisfaction, hotel managers/leaders should increase the activities with community From the good perception about hotel images, employees may commit to work for hotels for long time

CHAPTER I: THE PROBLEM AND ITS SETTING 1.1 Background of the Study

Hai Phong is a major tourist center of Vietnam Hai Phong Tourism explores famous attractions in Hai Phong, a high-quality, international-class resort Hai Phong is a attractive destination for tourists with many attractions from culture, life, natural landscapes Cat Ba archipelago is famous tourist spot in Hai Phong with the archipelago system of 366 small islands, 70 km from Hai Phong city According to Cat Ba tourism experience, Cat Ba famous island attracts tourists by the clear blue beaches stretching on smooth white sand beaches and green tropical mangrove ecosystems all year round To Cat Ba, visitors can visit Lan Ha Bay, Trung Trang Cave, Trung Son Cave, Phu Long Cave, Cat Ba National Park, or take part in swimming, kayaking, diving and enjoying the famous seafood specialties Especially in Cat Ba primeval forest, there are species of Golden-headed langur, a rare and precious animal in the world only in Cat Ba Cat Ba archipelago was recognized by UNESCO as a world biosphere reserve in Paris on October 29, 2004 and is proposing to be recognized as a world natural heritage according to biodiversity criteria

Hai Phong owns a chain of connecting international tours, domestic tours in all three regions of North, Central and South The number of tourists to Hai Phong keeps increasing, in 2016 Hai Phong tourism welcomes and serves 5.96 million passengers, an increase of 6.02% compared to 2015, of which international visitors reach 759.03 thousand times , up 6.36% over the same period, total tourism revenue is estimated at 2,300 billion, up 6.19%; In 2017, nearly 7 million tourists, turnover reached 2,727.35 billion VND, increased 13.65%, 10 months of 2018, Hai Phong welcomed and served nearly 5 million visitors, of which international visitors were 484,767 turns, revenue reached 1,926.4 billion VND

In Hai Phong province, there are many hotels facing with difficulty that employees, after a time working for hotel, quit their job According to the survey by the author, the rate of turnover after 6 months of working is around 25%, after 1

year working is around 40%, and over 3 years is around 50% Companies lose money for recruiting and training employees It seem to be that in companies with high levels of social responsibility the rate of turnover seems to be less than in those with low levels of social responsibility It leads to the question that social responsibility has a relationship with turnover behavior among employees

There is no research that studies the effect of social responsibility on job satisfaction and employee turnover intentions Job satisfaction can significantly and positively decrease employees‘ intention to leave, and subsequently result in low turnover rates (Yang, 2008) Employees seem to leave the company when they are dissatisfied with the job or they feel having no motivation to work Liao, Hu and Chung (2009) argued that ―if a manager wants to reduce the turnover rate in the hotel industry, it is important that employees feel satisfied with their jobs and thereby improve commitment to the organization‖ Some studies showed that there was a strong relationship between affective commitment and job satisfaction and employee turnover intention (Sieger et al, 2011; Patrick et al., 2012) Besides the salary or work condition, employee‘s commitment depends on the belief that company has commitment with employees and their families

A better understanding of the effect of social responsibility on job satisfaction and turnover will encourage service employers to make every effort to incorporate corporate social responsibility in their organizations, foster a positive climate in their working environments, and effectively manage their diverse workforce If this study reveals that there is a significant relationship between corporate social responsibility and the other variables, then it could help solve some

of the major problems that managers in service firms are facing It could also set the path for a more responsible way of doing business in the service industry, which, in turn, would lead to increased levels of employees‘ job satisfaction and turnover intention reduction

It is assumed that employees who work in company that undertakes social responsibility are more satisfied with their job, more loyal to the organization,

and have low turnover intentions than those who work in company that does not undertake social responsibility It is also assumed that there are strong relationships between social responsibility, job satisfaction, and turnover intention More specifically, higher levels of job satisfaction can affect negatively turnover intention Furthermore, it is supported that service employees‘ perceptions of social responsibility affect their job satisfaction Finally, it is supported that employees‘ perception of their social responsibility and their job satisfaction affect turnover intention

1.2 Objectives

In general, this study examined the relationship of social responsibility on employee job satisfaction and employee turnover intention in the Hotel industry in Hai Phong City and from the results, this study offered some solutions for managers

of hotels to increase employee job satisfaction and reduce turnover intention

Specifically, this study intended to:

- Clarify the influence of social responsibility perceptions on employees‘ satisfaction and turnover intention

- Clarify the mediating role of job satisfaction on the influence of social responsibility perception on employees‘ turnover intention

- Clarify the effect of some individual characteristics such as age and gender that affect the relationship between corporate social responsibility and job satisfaction

- Propose solutions to improve the employees‘ satisfaction and reduce turnover intention for firms in Hai Phong province

1.3 Hypotheses

From the above objectives, the following hypotheses were proposed:

The research model first proposes that positively perceived company‘s social responsibility of employees will have a positive effect on employees‘ job satisfaction If a company‘s employees perceive that company is responsible for not only them, but also for their families and society, then the employees‘ job

satisfaction ratings are high, turnover rates were low, and their intention to leave the company was also low There is a positive relationship between perceived social responsibility toward society and job satisfaction The discussion above leads to the following hypotheses:

H1: Perceived social responsibility toward society has positive effect on employee job satisfaction

Similarly, when employees perceive that company is responsible for environment, employees may feel more safe and comfortable They also feel more satisfied with their jobs From above discussion, the following hypothesis was proposed:

H2: Perceived social responsibility toward environment has positive effect

on employees’ job satisfaction

When employees feel satisfied with their jobs they seem to be committed to work for company for long time They also seem not to looking for another job The more employees feel satisfied with their jobs the less they intend to leave their jobs From discussion above, the following hypothesis was proposed:

H3: There is a negative effect of job satisfaction on turnover intention

In the relationship between perceived social responsibility and turnover intention, the feeling of job satisfaction mediates the effect of social responsibility

on employee job job satisfaction

H4: Employee job satisfaction mediates the effect of perceived social responsibility on turnover intention

The level of effect of social responsibility on employee job satisfaction in each employee is different because of some characteristics Employees with old ages seem to perceive social responsibility better than those with low ages In addition, male employees may perceive better social responsibility than female employees From the above discussion, the following hypothesis was proposed

H5: There are differences in perception of social responsibility among employees according to their characteristics such as age and gender

1.4 Theoretical Framework

Content theories seek to investigate the factors that control and organize human behavior These theories focus on the needs and values that motivate individuals and enhance their satisfaction and performance Schermerhorn (2011:102) suggests that content theories ―focus primarily on individual needs – physiological or psychological deficiencies that we feel a compulsion to reduce or eliminate The content theories try to explain work behaviors based on path-ways to need satisfaction and on blocked needs‖ Consequently, they are often regarded as static theories because ―they look at only one point in time and do not predict behavior‖ (Hosoi, 2005:44) Therefore, their use is limited to understanding the factors that motivate people in their working environment

Exchange theory is based on the assumption that commitment occurs as a result of contribution/encouragement transactions between the employee and the organization (Cropanzano, Rupp, & Byrne, 2003; Kim & Rowley, 2005) Exchange theory explains these transactions as psychological contracts In contrast to a legal contract, a psychological contract is an unwritten agreement between the employee and the organization that specifies what they expect to give and receive from each other (Ivancevich, 2010) Exchange theory presumes that the relationship between the organization and the employee involves social and economic exchange (Cropanzano et al., 2003; Kim & Rowley, 2005) Social exchange refers to voluntary actions which may result from an organization‘s treatment of its employees in exchange for an expected obligation on employees to reciprocate fair treatment of the organization On the other hand, economic exchange refers to the provision of economic benefits in return for employees' effort and is often outlined

in formal and legally enforceable contracts (Aryee, Budhwar, & Chen, 2002; Blau, 1964; Gould-Williams & Davies, 2005)

Based on exchange theory, employees join organizations with the expectation that they can find a work environment in which they can utilize their knowledge and skills to achieve their goals and desires As a result, employees'

perceptions of favorable exchange relationships with their organizations are expected to result in increased organizational commitment Likewise, the level of an employee's commitment to an organization could increase according to his/her perception of company image On the other hand, decreased organizational commitment is likely to be resulted from providing insufficient rewards in exchange for the employee‘s effort (Crede, Chernyshenko, Stark, Dalal, & Bashshur, 2007; Haar, 2006) This point of view supports Becker's (1960) conceptualization of organizational commitment as a process of accumulated investments

Maslow's Need Hierarchy

Maslow (1943) Hierarchy of Needs is the model that presents the need of people with some level of satisfaction The theory of Hierarchy of Needs which is considered one of the most well-known theories in the field of human behavior and one of the first theories that attempt to categories the different human needs (Kreitner & Kinicki, 2009) Factors such as achievement, power, and even biology were considered to shape the human behavior In this thesis, job satisfaction is the motivation for employees to quit the job or not

Expectancy Theory

The Expectancy Theory stems from the much earlier work of Edward Tolman in 1932, who promoted the idea that the relationship between stimulus and response is mediated by unobservable variables or cognitions (Levy, 2006) However, it was not until the 1960s when Vroom (1964) developed what has been called the ―Expectancy Theory‖ which views motivation as a meta- mathematical function of three types of cognitions (Spector, 2003)

The theory explains that motivation is a conscious process, and individuals choose which activities to put their effort into to achieve desired outcomes Thus, human behavior towards motivation is shaped by preference and possibility of the desired outcomes Consequently, individuals will be motivated when they believe their behavior will result in outcomes or rewards they value (Spector, 2003)

Equity Theory

The way that individuals measure justice and fairness is at the heart of equity theory This theory is usually applied in work contexts to explain how an individual's motivation is influenced by his/her perception of how fairly he/she is treated in social exchanges at work (Ivancevich, 2010) Different equity theorists argue that individuals at work must be rewarded according to their actual contribution, implying that those who contribute more at work deserve to have more rewards or privileges than those who contribute less (Deutsch, 1985)

ERG Theory

The ERG theory developed by Alderfer (1972) is considered an extension to Maslow's theory of Hierarchy of Needs However, the ERG theory is narrowed down to the organizational context by explaining work behavior in organizations (Steers, Porter, & Bigley, 1996) Alderfer (1972) provided an alternative to Maslow's theory which is based on five need levels In the ERG theory, Alderfer (1972) argues that these five levels of needs could be based on a three-dimensional conceptualization of human needs, namely existence, relatedness, and growth By developing the ERG theory, Alderfer (1972) argued that the five need categories in Maslow‘s theory could be incorporated into three main categories, being

―Existence‖, ―Relatedness‖, and ―Growth‖ The name of the ERG theory is derived from the first letters of these three categories (Plunkett, Attner, & Allen, 2007)

Herzberg Two-Factor Theory

Frederick Herzberg and his colleagues proposed the ―Two-Factor Theory‖ in

1957 The theory, also known as ―the Motivator-Hygiene Theory‖ was first published in Herzberg's (1959) book ―The Motivation to Work‖ which was built on Maslow's observations Herzberg distilled these observations into a more straightforward ―Two-Factor Theory‖ (Robertson, 2009) Herzberg developed his Two- Factor theory by studying 200 accountants and engineers in Pittsburgh The aim of this study was to identify the factors which make workers dissatisfied and isolate them from those factors that bring about satisfaction Participants were asked two questions:

When did you feel particularly good about your job?

When did you feel exceptionally bad about your job?

After analyzing the responses, Herzberg (1959) and his colleagues found that two sets of factors emerged The first set related to job aspects associated with job satisfaction, while the other related to those associated with job dissatisfaction Herzberg labelled those associated with job satisfaction motivators, and those associated with job dissatisfaction labelled as hygiene factors Hygiene factors include security, supervision, pay, co-workers, and policies Motivator factors consist of job aspect relevant to growth needs, such as responsibility, recognition, and achievement By separating these two factors, Herzberg argued that job satisfaction is a distinct construct from job dissatisfaction Therefore, removing the hygiene factors do not necessarily lead to job satisfaction Herzberg argued that there is a dual continuum Murugan (2007:304) explained it as ―the opposite of 'satisfaction' is 'no satisfaction' and the opposite of 'dissatisfaction is no dissatisfaction'‖

Many scholars have criticized Herzberg's Two-Factor Theory and consider it invalid (Locke & Henne, 1986) The major problem with the Two-Factor Theory is that it has not been empirically supported by other studies (Spector, 2003) Also, critics argue that the Two-Factor Theory is observed because it is natural for people

to take credit themselves when things go well In case of failure, they tend to blame the external environment (Wall, Stephenson & Skidmore, 1971)

The model proposes that positively perceived social responsibility may have

a direct positive effect on employees‘ job satisfaction If a company‘s employees perceive that their company has responsibility with employees and community, and then the employees‘ job satisfaction ratings are high, turnover rates were low, and their intention to leave the company could be also low, and possibly result to increase in commitment of service provision

One more relationship that the model proposes is that job satisfaction would have a strong impact on turnover intention This is based on previous research findings (Choy 1995; Li & Tse, 1998; Lam, Zhang & Baum, 2001), which supported that there is a relationship between employee turnover and job satisfaction Additionally, they found a relationship between employee turnover intention and job facets as perceived by the employees/managers in the tourism industry in relation to employee turnover Smith, Gregory and Cannon (1996) found that employees who are working for an organization for a period of six months or more tended to have decreasing levels of job satisfaction They also noticed that the highest levels of job turnover took place during that period Their results revealed that the main reason for increased employee turnover is the employee‘s lack of satisfaction with their jobs Taking all the above into consideration, this model supports that higher levels of employee job satisfaction would result in decreased employee turnover rates It is also possible that job satisfaction mediate the effect of perception of social responsibility on turnover intention

Employee‘s perception of social responsibility depends on some individual factors such as intelligence or working time If employees who have high level of intelligence would perceive social responsibility better than those with low level of intelligence and they feel more satisfied with job as well as more likely intend to stay in the company

In addition, employees who work long time for company may perceive social responsibility better than those with short working time and they seem to work longer for the company When employees perceive highly company‘s social responsibility, they feel more satisfied with their job, in turn; they intend not to look for job in another company

Figure 1 1.The Research Paradigm 1.6 Operational Definitions

Corporate Social Responsibility Corporate Social Responsibility may also

be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change CSR is defined as the following: caring for the well-being of others and the environment with the purpose of also creating value for the business CSR is manifested in the strategies and operating practices that a company develops in operationalizing its relationships with and impacts on the well-being of all of its key stakeholders and the natural environment

To measure corporate social responsibility, the employees‘ perceptions of social responsibility was used It refers to the understanding of employees about firms‘ responsibility with community, citizens, employees and environment

Corporate Responsibility for Society Social responsibility for society is a

concept, where companies integrate social concerns in their business operations and the interaction with stakeholders, without compromising economic performance To measure corporate social responsibility for society, four items (7-point) scale were used that were adapted from the research of Glavas-Keller (2014)

Mediating Variables

Dependent Variables

Table 1 1 The Scale of Corporate Responsibility for Society

CSRS4 I think contributing to the well-being of the community is a high priority

Corporate Responsibility for Environment Social responsibility for

environment is a concept, where companies integrate environmental concerns in their business operations and the interaction with stakeholders, without compromising economic performance To measure corporate social responsibility for environment, four items (7-point) scale were used that were adapted from the research of Glavas-Keller (2014)

Table 1 2 Corporate Responsibility for Environment Scale

CSRE8 My company achieves its short-term goals while staying focused on its

impact on the environment

Job satisfaction Job satisfaction is a complex phenomenon, which does not

happen in isolation, but depends on organization variables, like structure, size, salary, working conditions and leadership (Boyens, 1985) Employees‘ level of satisfaction can be measured with some particular indicators like: Attitude toward present job, Satisfaction with pay, Satisfaction with promotion opportunities, Satisfaction with coworkers, Satisfaction with supervisor Five items were used to

measure employee‘s satisfaction scale This measure uses 7 –point scale from

―strongly disagree to strongly agree‖ Table 1.3 shows the list of items for this scale

Table 1 3 Employees’ Job Satisfaction Scale Code Item

SAT1 I think I am satisfied with my job

SAT2 I am really doing something worthwhile in my job

SAT3 Overall, I am satisfied with my job

SAT4 I am paid very well compared to employees who do my job at

other firms

SAT5 In my opinion, the pay here is higher than at other firms

Turnover Intention Turnover intention can be defined as ―the last in a

sequence of withdrawal cognitions, a set to which thinking of quitting and intent to search for alternative employment also belong‖ To measure turnover behavior, some dimensions were used such as ability to find other job or intension to quit current job, or intension to find better opportunity Four items were used adapted from Schwepker‘s (2001) study on a seven point scale ranging from 1(strongly disagree) to 7 (strongly agree) to measure turnover intention The Table 1.4 shows the list of items

Table 1 4 Turnover Intention Scale Code Item

TI1 I do not intend to work long time for this company

TI2 I think about quitting my job at this firm

TI3

I intend to quit my job because other companies offer better payments

I intend to look for another job

TI4 I do not intend to work long time for this company

1.7 Significance of the Study

- Through doing this study, the research results may help service firms understand deeply the role of social responsibility in service businesses

- The finding from this research may propose some useful solutions for leaders of hotels to accelerate their employees responsibility in providing the services and doing organizational commitment with customers

- The findings also help hotels in Hai Phong Province pay more attention to social problems It can be considered as one of solutions to keep employees‘ loyalty with the firm In real situation, when employees feel satisfied with the job, they may contribute much their ability to the hotels

- From the solutions to help hotels pay attention to environmental problems, hotels and employees contribute their ability in keeping environment

in Hai Phong City

- The improvement in hotel service may help hotels in Hai Phong attract more visitors come to Hai Phong city More customers visiting in Hai Phong city, it means that Hai Phong city attract more people and increase the money from tax

- The improvement of hotel services may help local authorities increase the GDP of Hai Phong City, improve people living condition, reduce unemployment rate

1.8 Scope and Delimitation

Since hotel industry is typical in Hai Phong, this study will focus on identifying the effects of social responsibility on employee job satisfaction and turnover of hotel industry in Hai Phong City It will be conducted among employees

in the field of Hotel Services in Hai Phong City Only employees who had been working long enough (over 1 year) to perceive company‘s social responsibility participated in this study

- Content scope: The study focuses on studying the effect of corporate social

responsibility on employee‘s job satisfaction and turnover intention of hotels in Hai Phong City

- Time scope: Research was conducted from 2017 to 2018

+ Secondary data was the data that was collected of the year of 2013-2016 + Primary data was collected in 2017

- Space scope: The research was conducted at Hai Phong City, Vietnam First, the limitation is related to the type of hotels that were included in this study More specifically, this study embraced all different hotel segments It would

be more helpful if the study was conducted by segment or narrowed down to just one segment, for example the luxury segment

Time and money limitations also constrained the data collection process The researchers had to schedule a data collection cut-off date in order to complete the study in a timely manner Money was also an issue as a larger budget would have allowed researchers to provide more expensive incentives to hotel employees to motivate them to participate in this study

CHAPTER II: REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Related Literature

2.1.1 Corporate Social Responsibility

Corporate Social responsibility (CSR) has been an attracting topic for many researchers recently Both organizations and societies have significantly increased their focus on CSR in recent years (Adams & Frost, 2006; Gulyás, 2009; Young & Thyil, 2009) In the past, companies used to focus on strategies for their business operations and profit such as differentiation, diversification, turnaround, concentration and globalization However, recent developments in strategic thinking support the need to add activities that expand out from the company into society and that businesses must participate in society in a responsible and ethically symbiotic way (De George, 1990; Joyner et al., 2002) In management literature, the issues relating to sustainable and responsible ways of conducting business are typically discussed within the concepts of CSR, business ethics, Corporate Responsibility (CR), Corporate Citizenship (CC), stakeholder issues, and sustainability, etc

The practice of CSR has been dominated by developments in Western developed countries, such as the United States of America (USA) and the United Kingdom (UK) (Chambers et al., 2003) and it is unclear whether it translates easily into developing and non-Western countries Some specific circumstances have been discussed by several scholars who have identified the gaps between developed and developing countries when CSR is implemented (Chambers et al., 2003; Matten & Moon, 2004; Chapple & Moon, 2005; Visser, 2007) Writers such as Edmondson and Carroll (1999), Burton et al (2000) and Khan (2005), have suggested that different cultural models and traditional customs may mean that a great deal of what

is currently understood about CSR may not be applicable in developing countries such as Vietnam

In the discourse on CSR, a wide variety of connotations and definitions exist, ranging from corporate philanthropic activities to the strategic repositioning of

enterprises in society (Nijhof & Jeurissen, 2010) The term CSR is used to describe how businesses implement the broad societal responsibility of going beyond economic criteria (Khojastehpour & Johns, 2014) CSR comprises a number of corporate activities that focus on the welfare of stakeholder groups, including society and the natural environment (Sprinkle & Maines, 2010)

Indeed, CSR is a broad concept that covers a range of environmental, social, and ethical responsibilities, and there have been numerous definitions in the literature over the years (Polonsky & Jevons, 2009) Following the European Commission definition, CSR is understood as the voluntary integration of social and environmental concerns in the enterprises‘ daily business operations and in the interaction with their stakeholders (Benoit-Moreau & Parguel, 2011) Although many frameworks exist to conceptualize and operationalize CSR, a three dimensional framework captures the main features of CSR The three general attitude-based dimensions are: human responsibility; environmental responsibility; and product responsibility (Anselmsson & Johansson, 2007) As a result, it is now widely agreed that CSR is a multidimensional concept and CSR initiatives are oriented towards various stakeholder groups, like: customers, employees, investors, regulators, the community or the environment It is evident, that CSR is not about doing business as usual It is about doing business responsibly in a dynamic market where many risks and opportunities exist As in any other business strategy, the success of a CSR strategy depends on the market dynamics

of what competitors do, it depends on whether clients trust your fair trade labels, it depends on how it affects the loyalty of the employees Such an approach requires embedding CSR in the entire business, so people at all levels of the organization are triggered to think, communicate and act on the specific CSR issues they face

in their work (Brown, 2005)

CSR is now linked to the social consequences of commerce, business and marketing and thus aims at mitigating and limiting the negative consequences while enhancing and augmenting the positive consequences of commerce, business and

marketing (Feldman & Vasquez-Parraga, 2013) Some corporations start CSR programs to improve their reputation (Zhou, Quan, & Jiang, 2012) Corporate reputation systematically is understood as subjective and collective recognition, perception, attitude and evaluation of an organization over time between all involved stakeholder groups that is based on specific organizational quality aspects, past behaviour, communication, symbolism and, possibility and potential to satisfy future expectations comparing to competitors Here, CSR takes very important role

CSR is an essential element in building and maintaining favourable corporate reputation, which is regarded as an important strategic resource factoring into a company‘s competitive advantage (Park, Lee, & Kim, 2014) Research by Khojastehpour and Johns (2014) proves that CSR issues may benefit organizations

in building their reputation and suggests that customers expect firms to be involved

in CSR activities and may reward them for their efforts An interest in CSR and corporate reputation is greatly influenced by tougher competitive conditions in the market and economic pressure to organizations from various stakeholder groups Various studies conclude that stakeholder groups take into account organizations‘ commitment to CSR initiatives when evaluating organizations As a result, it is important to investigate deeper into CSR reasons, practices and impact to corporate reputation

Various authors indicate a number of reasons underlying organizations‘ motivations for undertaking socially responsible activities Sprinkle and Maines (2010) claim that organizations may engage in CSR activities for 4 reasons: organizations may have altruistic intentions; they may use CSR activities as

―window dressing‖ to appease various stakeholder groups; for potential benefits of recruitment, motivation and retention of employees; for customer-related motivations as CSR may entice consumers to buy organization‘s products and services Weber (2008) indicates five key areas where CSR creates positive relations This also show 5 reasons for CSR: positive effect on organization‗s image and reputation; positive effect on employee motivation, retention and recruitment;

cost savings; revenue increases from higher sales and market share; and related risk reduction or management Polonsky and Jevons (2009) found that possible reasons to organizations of being socially responsible include: improved financial performance; contribution to market value; a more general positive impact

CSR-on societal stakeholders; a cCSR-onnectiCSR-on with cCSR-onsumers; and improved product quality Authors also claim that there are even internal reasons such as: increased employee commitment and reduced employee turnover; not to mention improved society overall

In addition, according to Bhattacharya and Sen (2004), CSR activities generate more immediate outcomes such as word-of-mouth; resilience to negative company information; and consumers‘ awareness, attitudes and attributions about why companies are engaging in CSR initiatives Feldman and Vasquez-Parraga (2013) summarizes possible reasons for CSR generated from various literature sources They claim that organizations may have 6 reasons for CSR First, CSR actions influence consumers‘ reactions to that company and its products Second, specific company strategies are found to include CSR actions in order to attract and retain customers Third, consumers use trade-off criteria between CSR product features and traditional product features such as price, quality, convenience and lack

of information, corporate brand dominance or product quality Fourth, consumers‘ evaluations of company CSR may be linked to their perspectives of how responsible

a company is in relevant areas such as economic, legal, ethical, and philanthropic Fifth, consumers‘ evaluations of the fit between companies‘ CSR activities and consumers‘ characteristics or interests positively affect consumers‘ perceptions of companies‘ CSR activities

Sixth, consumers who receive communication about company CSR activities increase their CSR awareness, which in turn, generates positive attitudes towards buying products from CSR companies All this, in the end, leads to better corporate reputation and better financial performance of the organization So, according to Polonsky and Jevons (2009), CSR should not be viewed simplistically as another

promotional opportunity to be leveraged, although some firms do mistakenly try to use CSR in a superficial tactical fashion

CSR has been a longstanding practice in the corporate arena and thus, it has represented an attractive and fruitful topic for both academics and practitioners Yet, despite its importance and hundreds of studies conducted, the CSR construct still lacks a generally accepted definition (Green & Peloza, 2011) There exist a variety

of theoretical perspectives and definitions to explain the CSR phenomenon (McWilliams et al., 2006; Vlachos, 2012) Among those, the most cited definition is the one proposed by Carroll (1979; 1991) Caroll (1979) present CSR as a construct that ― encompasses the economic, legal, ethical, and discretionary expectation that society has of organizations at a given point in time‖ In his definition, Caroll claims that these responsibilities that are expected from a firm are to be performed not only for the sake of the firm but also for the sake of society at large

A review of literature also suggests that the dimensions of CSR vary as well The most classical classification of the dimensions is the one offered by Carroll (1979) that emphasizes the four principal types of responsibilities as dimensions which are economic, legal, ethical and philanthropic Carroll argues that these four dimensions are intimately related and thus, organizations should strive to achieve all four at all times In other words, a socially responsible firm ―should strive to make a profit, obey the law, be ethical, and be a good corporate citizen‖ (Caroll, 1991)

Even if there exist other dimensions proposed by other researchers, these dimensions somewhat correspond with the dimensions proposed by Carroll For example, Lantos (2001; 2002) claim that there exist three dimensions of CSR which are namely ethical, altruistic and strategic Two of these dimensions- ethical and altruistic- are very much linked to the ethical and philanthropic dimensions that are previously proposed by Carroll The exception is the strategic CSR dimension which is relatively new to the relevant literature Strategic CSR implies that CSR activities have the potential to improve corporate image and increase motivation and loyalty primarily among various stakeholder groups including shareholders,

employees and customers (Lantos, 2002; Vaaland et al., 2008) Thus, more and more companies today consider the adoption of CSR initiatives as an important strategic objective (Wagner et al., 2009)

Probably the issue that is most extensively investigated within the context of strategic CSR is the relationship between CSR activities and a dozen reviews of numerous empirical studies published (e.g., Pava & Krausz, 1996; Margolis & Walsh, 2001, 2003; Orlitzky et al., 2003), yet the empirical evidence to date is rather mixed While the effect of CSR on financial performance is found to be positive in some studies (e.g., Fombrun & Shanley, 1990; Solomon & Hansen, 1985; Stanwick & Stanwick, 1998), in others it is found to be negative (e.g., Aupperle et al., 1985; Mc Guire et al., 1988)

More recently, viewing CSR as an important business strategy and a source

of competitive advantage, firms have begun to focus on the effects of CSR on other stakeholder groups, employees and customers in particular In this context, some researchers have examined whether CSR activities enhance organizational effectiveness through improved job satisfaction (e.g., Hansen et al., 2011) or organizational trust (e.g., Valentine & Fleischman, 2008) while others have studied the effect of CSR on customer-related outcomes such as customer satisfaction (e.g., Carvalho et al., 2010; He & Li, 2011; Luo & Bhattacharya, 2006) and loyalty (e.g., Lee et al., 2012; Marin et al., 2009; Salmones et al, 2005, Stanaland et al., 2011)

In the related literature, the relationship between CSR and customer satisfaction is explained based on different research streams Pointing to the tenets

of stakeholder theory, some researchers (e.g., Maignan et al., 2005; Daub & Ergebzinger, 2005) argue that a company‘s customers are potential stakeholders who care about not only the economic value of consumption but also the overall standing, including the social performance, of the company In addition, given that perceived value and customer knowledge are acknowledged as possible antecedents

of customer satisfaction (Fornell et al., 1996; Jayachandran et al., 2005), it is not surprising that CSR activities, through both adding value to the company and

improving customer knowledge, promote customer satisfaction Based on these views, Luo and Bhattacharya (2006) argue that customers are likely to be more satisfied by products and services offered by socially responsible firms and test their model on Fortune 500 companies Their findings reveal not only that there exists a direct link between CSR and customer satisfaction but also that customer satisfaction fully mediates the relationship between CSR and firm market value In a similar context, He and Li (2011) examine this relationship in mobile telecommunications sector and find that CSR has a direct effect on customer satisfaction

Reputational capital, which represents the collective opinions about a firm held by its stakeholders, influences a firm‗s performance in different ways (MacMillan et al., 2002; Kitchen & Laurence, 2003) Generally, reputational capital

is believed to provide firms with many benefits such as better customer opinions (Milgrom & Roberts, 1986; Grewal et al., 1998; Mohr & Webb, 2005), better employee morale (Garbett, 1988; Gregory, 1991; Turban & Cable, 2003), access to cheaper capital (Beatty & Ritter,1986; Ye & Zhang, 2011) and increased firm value (Fombrun & Shanley, 1990; Gregory, 1991; Patten, 2008)

The extant literature shows a close correlation between reputational capital and corporate philanthropy (McGuire et al., 1988; Fryxell & Wang, 1994) Corporate reputation is regarded as a type of investment (Zhang & Rezaee, 2009), and CSR such as corporate philanthropy can help firms enhance their reputational capital (McGuire et al., 1988; Fryxell & Wang, 1994; Brammer & Millington, 2005) However, most of the extant studies focus on the stimulation effect of CSR

on reputational capital and neglect the fact that CSR may not necessarily transform into corporate reputation This gap can be filled by focusing on the role

of analyst coverage because analysts provide important information in the capital market world

Companies gain benefit from CSR because it increases attractiveness to potential and existing employees Employees were seen as the crucial implement for

enterprises in modern competitive background to build competitive advantages Although some studies of CSR adopted an organizational behavior perspective (Albinger & Freeman, 2000; Greening & Turban, 2000), they mainly focused on how CSR impacted prospective employees, and increased corporate attractiveness This research supports the idea that CSR positively affects corporate attractiveness but says little about how CSR actually influences employees

The few empirical studies investigating the internal ‗impact of CSR on employees, tend to focus on specific dimensions of organizational commitment (Brammer et al., 2007; Maignan & Ferrell, 2001a; Peterson, 2004) Because of its multidimensional nature (Husted, 2000; Wood, 1991), CSR can influence a wide range of organizational attitudes and behaviors beyond organizational commitment Aguilera et al (2007) and Rupp et al (2006) suggest that CSR can frame employees

‗perceptions of organizational justice, and Swaen and Maignan (2003) and Swanson and Niehoff (2001) suggest that CSR can affect Organizational Citizenship Behavior These points to a lack of theoretical consolidation and synthesis on how and why CSR impacts on employees‘ attitudes and behavior, which can be explained by the limited empirical evidence available

The question of whether CSR driven attitudes and behaviors can affect employees ‗organizational performance and ultimately corporate financial performance has never been investigated, either theoretically or empirically Some researchers are investigating the role of stakeholders ‗behavior as a mediating variable between CSR and financial performance (Barnett, 2007; Rowley & Berman, 2000; Wood & Jones, 1995), yet attention has mainly focused on consumers (Brown & Dacin, 1997; Luo & Bhattacharya, 2006; Schuler & Cording, 2006; Sen & Bhattacharya, 2001) An important contribution of this manuscript is that it presents a model that systematically explains how employees ‗attitudes and behavior affect this relationship

This study aims to provide an integrative model that explains how CSR influences employees ‗job satisfaction and turnover intention Based on social

identity theory (Ashforth & Mael, 1989; Hogg & Terry, 2001; Tajfel & Turner, 1985) and social exchange theory (Blau, 1964; Cropanzano & Mitchell, 2005; Molm & Cook, 1995) the researcher want to predict employees ‗attitudinal and behavioral reactions to CSR Social identity theory suggests that individuals tend to reinforce their self-esteem and bolster their self-image by identifying with groups and organizations recognized for their social engagement and responsibility

Empirical research has highlighted how identification explains social responsibility‗s influence on consumers and employees (Bhattacharya & Sen, 2004; Maignan & Ferrell, 2001; Maignan, Ferrell & Hult, 1999; Peterson, 2004; Sen & Bhattacharya, 2001) Recent theory also suggests stakeholder management is closely aligned with organizational identity (Brickson, 2005; Scott & Lane, 2000) However, social identity theory does not integrate notions of reciprocity, expectations and mutual obligations which are needed to understand how attitudes and behavior, enhanced by identification, may contribute to corporate performance (Cropanzano & Mitchell, 2005) CSR encompasses actions oriented toward stakeholders which are beyond the scope of traditional corporate activities, involving, for example, the environment, non-governmental organizations (NGOs)

or social groups These actions are likely to alter dynamics between corporations and their employees, creating a need for employees to reciprocate positive corporate social behavior (Blau, 1964; Gouldner, 1960; Molm & Cook, 1995)

Research has shown that individuals ‗identification with an organization may

be aligned with specific forms of social exchange (Flynn, 2005; Lawler, 2001; Molm & Cook, 1995; Molm, Peterson, & Takahashi, 1999) This suggests that individual levels of organizational identification may influence social exchange, and subsequent processes, triggered by CSR, may affect social exchange dynamics within organizations Therefore, our model combines theories of social exchange and social identity to explain how employees may develop a sense of obligation and engage in productive or counterproductive work behaviors, rewarding or punishing CSR practices, especially those directed at employees and work conditions

This model makes a threefold contribution First, it provides a new set of testable hypotheses that can support future empirical investigations of CSR‗s impact

on employees Second, the model clarifies neglected relationships between social exchange and identification processes, and suggests that CSR provides promising areas for future research Third, because it highlights CSR‗s influence on employees

‗attitudes, behavior and organizational performance, this model can help managers design effective CSR policies and programs Indeed, our model specifies conditions that CSR stimulates employees ‗to behave in ways that enhance organizational performance

2.1.2 Job Satisfaction

In reviewing the literature, it would be difficult to search for the universal definition of job satisfaction Several researchers defined job satisfaction in different terms For example, Hoppock (1935) defined job satisfaction as ―any combination of psychological, physiological, and environmental circumstances that causes a person truthfully to say, ‗I am satisfied with my job‘‖ (in Green, 2000) For Ivancevich and Donnelly (1968), job satisfaction was ―The favorable viewpoint of the worker toward the work role he presently occupies‖ (in DeMato, 2001) Smith, Kendall, and Hulin (1969) said job satisfaction was ―Feelings or affective responses

to facets of the situation‖ (in Steers, Porter & Bigley, 1996) Although there was no consensus on ways of defining job satisfaction, job satisfaction generally was considered to be an employee‘s attitude about his or her job based on factors present

in the work environment In other words, job satisfaction was a result of employee‘s perception of how well his/her job provides those things that were viewed as important

Based on comparison among review of literature in job satisfaction, many researchers define job satisfaction Job Satisfaction is ―an affective and emotional response to various facets of one‟s job‖ (Kreitner & Kinicki, 2004), and Locke (1968) describes as ―being an emotional response that results from the employee‘s perceived fulfillment of their needs and what they believes the company to have

offered‖ Although recently researchers have tried to reflect current theoretical underpinnings of job satisfaction, Robert Hoppock‘s (1935) definition which was one of the earliest definitions of this concept is still the most cited one He says job satisfaction is ―any combination of psychological, physiological, and environmental circumstances that causes a person truthfully to say‖, ―I am satisfied with my job‖ (Hoppock, 1935 in Green, 2000)

The concept of job satisfaction and its definition have continually grown, expanded and unfolded through the previous decades Although basically it is a work-related positive affective reaction in majority of the definitions, less consistency can be observed in the factors that bring about job satisfaction This inconsistency may be because job satisfaction can be influenced by various factors including personal traits and characteristics of the job (Wexley & Yukl, 1984) To get deep understanding of employees, characteristics of jobs and their relation to the issue of job satisfaction various theories have been formulated These theories aim

at developing appropriate research frameworks for further studies on this concept

Wiener (1982) defined job satisfaction as an attitude towards work related conditions On the other hand, Feinstein (2000) was of the view that job satisfaction

is more of a response to a specific job or various aspects of the job Other researchers (Al Ajmi, 2001, Scarpello & Cambel, 1983) have found that employee job satisfaction would significantly impact job performance, absenteeism and turnover and employee relations

Job satisfaction is an important construct discussed in organizational culture, especially in the context of organizational success, and it is associated with individual, organizational, economic and ethical outcomes (Balzer et al., 1997) Job satisfaction is a broad conceptualization referring to an overall attitude toward the job There is a plenitude of definitions and approaches explaining job satisfaction in the literature The definition of Porter et al (1975) emphasizes individual‘s reaction against the work or organization Lease (1998) describes satisfaction as an individual‘s affective commitment to his/her organizational role Brief (1998)

defines satisfaction as ―an internal state that is expressed by affectively and/or cognitively evaluating an experienced job with some degree of favor or disfavor‖

Weiss (2002) characterizes job satisfaction as an affirmative state of emotion and expression arising from an individual‘s assessment of his/her job and Oshagbemi (2003) states that job satisfaction is one‘s own comparison between desired and actual consequences The approach most commonly used to explain job satisfaction in the literature is the Job Characteristics Theory by Hackman and Oldham (1976) This theory proposes that job satisfaction increases when there is an intrinsic motivation related to the job The authors identified five job characteristics that motivate employees intrinsically and affect five job-related outcomes (motivation, satisfaction, performance, and absenteeism and turnover) through three psychological states (experienced meaningfulness, experienced responsibility, and knowledge of results) These core characteristics are task identity, task significance, skill variety, feedback and autonomy

This theory suggests that the job itself serves as a motivating factor and employees feel greater motivation and satisfaction when these five characteristics are included in the job Intrinsic sources occur within the individual such as the ability to choose working speed (autonomy), one‘s own performance and relations with supervisors Extrinsic sources, in turn, occur outside the individual such as job security, working conditions and benefits This two-dimensional nature of job satisfaction was also examined by Rose (2001) and it was concluded that it is equally significant to have both intrinsic and extrinsic sources for a sense of satisfaction

Locke stated that job satisfaction was "a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences" (Locke, 1976:1300) In other words, job satisfaction is the positive or negative emotional evaluation of the employee regarding to what extent s/he is satisfied with her/his job (Spector, 1997) In this respect, job satisfaction is a subjective evaluation unique to the individual on a considerable level This attitude developed by the individuals

towards their work can be positive or negative in terms of various internal and external factors of the job performed, such as payment, working conditions and workplace environment Job satisfaction has emotional and cognitive dimensions While the emotional dimension shows the existing emotional mood of the individual, the cognitive dimension means cognitive content as well as the evaluation of current conditions and the comparison of expectations and standards (Organ, 1988:547) In general, while the employees with a high level of sense of job satisfaction behave in a positive and constructive manner towards their work and their organization, those with a low level of sense of job satisfaction bear negative feelings for work (Greenberg & Baron, 2000:43)

Research findings have indicated that many personal characteristics affect job satisfaction in different and complex ways, these personal characteristics including gender, age, marital status, and working experience, to name a few (Koustelios, 2001) Along with gender, age is probably the most researched characteristic in respect to its association with job satisfaction A number of studies have suggested that the importance of job attributes is age-related (Moyes, Williams, & Koch, 2006), though the nature of the relationship between age and job satisfaction is not clear (De Nobile & McCormick, 2008) Many studies have suggested a positive relationship between job satisfaction and age (Aldag & Brief, 1975; Ronen, 1978; Rhodes, 1983), while others have suggested

a U-shaped or non-significant relationship (Luthans & Thomas, 1989; Clarke, Oswald, and Warr, 1996)

Siassi, Crocetti, and Spiro (1975) reported higher levels of job satisfaction

in workers over 40 than those under 40 Ronen (1978) reported a linear relationship between age and job satisfaction in a sample of private sector production workers but not in a sample of Israeli Kibbutz workers Near et al., (1978) examined the relationship between age, occupational level, and overall job satisfaction and found that the strongest predictors of job satisfaction were rank and age In his own review and analysis, Rhodes (1983) concluded that job

satisfaction was positively and linearly associated with age arriving at this conclusion after a review of the findings from seven other separate studies (Aldag

& Brief, 1975, Near, Rice, & Hunt, 1978; Ronen, 1978; Siassi, Crocetti, & Spiro, 1975; Stagner, 1975; Staines & Quinn, 1979; Weaver, 1978) In his study which examined the level of job satisfaction experienced by Greek teachers, and the relationship between personal characteristics and specific aspects of job satisfaction Koustelios (2001) found age to be a significant predictor of different aspects of job satisfaction Additionally, Ssesanga and Garrett (2005), in their study of the job satisfaction of university academics from Uganda, reported age to have a significant influence on teaching satisfaction

Job satisfaction may be both intrinsic, derived from internally mediated rewards such as the job itself and opportunities for personal growth and accomplishment, and extrinsic, resulting from externally mediated rewards such as satisfaction with pay, company policies and support, supervision, fellow workers, chances for promotion, and customers (Walker, Churchill, & Ford, 1977) The extent to which someone can actually measure and calculate those intrinsic and extrinsic aspects of job satisfaction may lead researchers to confusion, wrong judgments or misinterpretations of the results Several dimensions may evaluate job satisfaction Employees may satisfy with job if he/she satisfy with the salary that company pay them

2.1.3 Turnover Intention

Many studies focused on employee turnover as it has been a serious issue especially today in which employee leave the organization or organization fired them Traditionally, turnover can be divided into two categories: voluntary and involuntary For this study turnover intention is defined as ―the last in a sequence of withdrawal cognitions, a set to which thinking of quitting and intent to search for alternative employment also belong‖ However, when it comes to voluntary turnover, Dalton, Todor, and Krackhardt's (1982) talked about two types of turnover: a) the dysfunctional and b) the functional which are both examined from organization's perspective

In the early literature, Price (1977) defined ―turnover‖ as the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period Fishbein and Ajzen (1975) suggested that turnover intention is the best measurement to evaluate workers' turnover behavior, and turnover intention is considered as the best anticipation for turnover (Kraut, 1975) Turnover intentions are an additional outcome of interest, one shown to be related to career commitment (Edmondson & Boyer, 2013; Lin & Ding, 2005) The notion of met expectations or, alternatively, fulfilling the psychological contract (Rousseau, 2004), is at the heart

of explaining how organizations affect individual behavior (Ertürk & Vurgun, 2015; Lin & Chen, 2004) That is, the degree to which a company satisfies the career needs of its employees affects the employee organization relationship One way in which organizations can meet their career needs is by providing employees with opportunities for career growth Bedeian, Kemery, and Pizzolatto (1991) found that career growth opportunities, or what they called the utility of the present job for one's career, were related to employees' intentions to leave Turnover intention differs from actual turnover behavior in that it is the subjective perception of the organizational member to leave the current job The desire to leave the current job (Edmondson & Boyer, 2013) is considered the most suitable to this study

Various studies have been conducted on the turnover intention In these studies, it has been observed that the reasons for the high employee turnover rates in hotel businesses are; the physical difficulties of the job, excessive working hours, job stress, wrong practices of managers, low training possibilities, and better working opportunities in other industries (Fallon & Rutherford, 2010:454; Willams, Harris, & Parker, 2008; Ogbonna & Harris, 2002) Lashley (2000:115) groups the reasons of the employee turnover rates as evitable and the inevitable circumstances

He describes the evitable situations as low wage policies, physical difficulty of the job, long working hours, improper management styles, lacking training opportunities, improper working conditions, stress and transportation difficulties;