1 ACKNOWLEDGE Firstly, I would like to express my appreciate to my research supervisor, Dr Tran Ha Minh Quan for his support, suggesting, guidance during time of my dissertation Secondly, I would like to express my gratitude to Prof Nguyen Dinh Tho for his effort in thoroughly guidance, encourage and support to every student throughout two-year-course Thirdly, this research was contributed by my classmates, my colleagues, and was moral assisted by my family I would like to send my deepest thank to them Last, ISB staff did helped, supported with their best for convenience of MBUS 2010 I appreciate very much for their contribution to my present result ABSTRACT Within 10 years, hotel industry in Ho Chi Minh city has developed impressively and has quite highly demanded in employing labor force Working environment is stable and professional is one of many attractive points of hotels, but it contains many characteristics which may demotivate employees Motivating staff to work better, more efficient is always one of business goals, especially in this special industry This study aims to investigate which factor affecting to hotel employee’s motivation The result showed that recognition, development, supervisor and promotion are four factors which affecting to hotel employee’s motivation in Ho Chi Minh city context Keywords: employee motivation, hotel industry, recognition, Ho Chi Minh city Contents ACKNOWLEDGE ABSTRACT Contents List Of Tables List of Figures List of Exhibits CHAPTER INTRODUCTION 1.1 Research background 1.2 Research questions 1.3 Research objectives 1.3 Scope of this study 10 1.4 Research contribution 10 1.5 Research structure 10 CHAPTER LITERATURE REVIEW 12 2.1 Definition of Motivation 12 2.2 Motivation theories 12 2.3 Previous researches about motivation in hospitality industry and identifying hypotheses in this study 18 2.4 Research model 24 CHAPTER RESEARCH METHOD 26 3.1 Research process 26 3.2 Measurement scale 26 3.3 The qualitative pilot research 26 3.4 Main research 29 CHAPTER 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 CONSLUSIONS AND RECOMMENDATIONS 46 5.1 Recommendations 46 5.2 Limitations and recommendation for future researches 50 REFERENCES 52 APPENDIX 57 List Of Tables Table 2.1 A Reorganization of Maslow's and Alderfer's Hierarchies 59 Table 2.2 Summary of factors affecting to employees’ motivation in hotel industry 19 Table 3.1 Scales of Management 26 Table 3.2 Scale of Working conditions 27 Table 3.3 Scale of Recognition 27 Table 3.4 Scale of Development 28 Table 3.5 Scale of Motivation 28 Table 4.1 Demographic Statistics of the Respondents 32 Table 4.2 Cronbach’s Alpha results of each measurement 33 Table 4.3 KMO and Bartlett’s test for independent variables 35 Table 4.4 KMO and Bartlett’s test for dependent variables 38 Table 4.5 Pearson Correlation Coefficient 39 Table 4.6 Summary output of Regression Analysis 40 Table 4.7 Summary output of Regression Analysis after remove one factor 41 Table 4.8 Personal characteristics and employee’s motivation 43 Table 4.9 Hypotheses testing 45 List of Figures Figure 2.1 Research model 25 Figure 3.1 Research process 26 Figure 4.1 Adjusted research model 38 List of Exhibits Exhibit 2.1 Maslow’s Hierarchy of Needs 57 Exhibit 2.2 The Herzberg's motivation-hygiene theory 57 Exhibit 2.3 Equity theory ratios 58 Exhibit 2.4 Expectancy Model 59 Exhibit 2.5 A diagram of Theory X and Theory Y 59 Exhibit 2.6 Job Charactersitics Model 60 CHAPTER INTRODUCTION 1.1 Research background Tourism industry plays a significant role in Vietnamese economic structure According to Grant Thornton Vietnam, in 2012 tourism market has welcomed more than six million foreign travellers, which increases 19.1% compared with last year data That result has contributed to general development of hotel industry This field had been attracting nearly 11 billion USD with 247 projects up to 2009; ranked the 3rd after industrial processing, manufacturing and real estate The more development in hotel industry, the more demand of labor force in this field But hotel industry is a kind of service industry, whose products created from human’s contact, owned unique characteristics Seasonableness is a stand out characteristic, which influences to labor force in this field In the peak period, hotels need a large amount of labor force, working with high productivity But in low season, they keep a few permanent employees The consequence is an unstable labor force, demotivated part-time employees and negative influence to performance of permanent staff Customer target in hotel is tourists, who come from different countries, which owned different cultures, hobbits, customs, etc Servers, who directly contact with customers, need to understand their requirements in order to assure quality service The consequence is the stressful job toward servers In addition, employees in hotel are required to work in high specialization, under high pressure of discipline, together with sensibility, accuracy and consistency For those above characteristics, labor force in hotel is likely to leave when they are under high pressure and demotivated from management team High staff turnover is a common and costly problem in hotel industry Reasons include such as low pay, antisocial working hours, menial work and limited career opportunities (Xander Lub et al 2012, cited in Barron, 2008; Davidson et al., 2011; Kusluvan and Kusluvan, 2000; Walsh and Taylor, 2007) An organization will be forced to invest million dollars in recruiting, orientating, training, etc if they own an unstable workforce Without continuity in customer relationship, organization does not have customer loyalty, stressful management, conflict happens easily and low efficiency Those make difficult for company to compete on marketplace Hence, constructing a good policy to motivate and retain good performance employees, who can create unique experiences and relationships with customers, is an important mission A stable workforce is a significant competitive advantage “Customer relationships are stronger when an organization’s workforce is stable and customers can depend on the company people – the continuity of their product knowledge, industry experience and proven performance.” (Kreisman, 2002) There have many researches, conducted in many countries, found out factors affecting to employees’ motivation in hotel industry in general With a speed-up in developing hotels, needs of recruiting new employees and retain good performance ones, studying about motivation in hotel in Vietnam is necessary in order to improve competitive advantage in market This study raises research objectives about creating motivation in hotel industry 1.2 Research questions 1.What factors affecting to employees’ motivation in hotel industry in Ho Chi Minh City? How does each factor affect to employee’s motivation? 1.3 Research objectives 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 10 1.3 Scope of this study This research will be conducted in hotel businesses in Ho Chi Minh City, included or 5-star hotels and other under 4-star hotels The interviewees will be employees who working in variety departments such as: food and beverage, front office, finance, human resource, etc 1.4 Research contribution This research has contributed to measurement system of working motivation level in hotel industry In reality, this research will help Managers who working in hotel industry in decision making in human resource management, creating appropriate decisions in managing, in order to increase productivities and employees’ motivation level Otherwise, the result of this research has contributed to human resources management researches in overall and in hotel industry 1.5 Research structure This study includes four chapters after chapter Introduction, as below: Chapter – Literature review : this chapter includes Definition of motivation, theories of motivation, previous researches in hospitality industry and identifying significant motivational factors in this paper Chapter – Research method: this chapter consists research process, measurement scale, the pilot test and the main research which was conducted Chapter – Data analysis: this chapter describes how each measurement scale was evaluated and the result of testing hypothesis It consists of sample description, measurement scale data analysis, regression analysis and evaluating the impact of personal characteristic on employee motivation Chapter – Conclusion and Recommendation: this chapter presents brief description about research findings and some of implications has mentioned At the 72 Coefficients Unstandardized Model Standardized Coefficients Coefficients B Collinearity Statistics Std t Sig 2.534 Tolerance VIF 012 Error (Constant) 2.344 925 Supervisor 211 063 192 3.344 001 506 1.977 Recognition 345 052 334 6.650 000 661 1.512 Development 190 051 220 3.755 000 486 2.059 Conditions 111 064 103 1.733 085 475 2.107 Promotion 327 101 172 3.254 001 597 1.675 a Dependent variable: motivation Residual Statistics Minimum Maximum Mean Std Deviation N Predicted Value 9.66 24.28 18.86 3.327 222 Residual -9.011 7.684 000 2.497 222 Std Predicted Value -2.767 1.626 000 1.000 222 Std Residual 3.043 000 989 222 -3.568 a Dependent Variable: motivation 73 Histogram of Motivation dependent variable Normal P-P Plot of regression standardized residual 74 Scatterplot of Motivation dependent variable 4.2 Regression analysis with four independent variables Variables Entered/Removedb Model Variables Entered Variables Removed pro, recog, develop, Method Enter supervisora a All requested variables entered Model Summary Std Error of the Model R R Square 0.797 Adjusted R Square 635 a Predictors: (Constant), pro, recog, develop, supervisor b Dependent Variable: motivation 628 Estimate 2.537 75 ANOVA Model of Squares df Mean F Sig 94.291 000a Square Regression 2427.371 606.843 6.436 Residual 1396.575 217 Total 3823.946 221 a Predictors: (Constant), pro, recog, develop, supervisor b Dependent Variable: motivation Coefficients Unstandardized Model Standardized Coefficients Coefficients B Collinearity Statistics t Sig Std Tolerance VIF Error (Constant) 3.053 833 3.663 000 Supervisor 237 062 215 3.836 000 535 1.870 Recognition 372 050 359 7.451 000 723 1.382 Development 224 047 260 4.791 000 573 1.746 Promotion 333 101 175 3.301 001 598 1.673 a Dependent variable: motivation 76 Residual Statistics Minimum Maximum Mean Std Deviation N Predicted Value 9.66 24.16 18.86 3.314 222 Residual -8.748 8.196 000 2.514 222 Std Predicted -2.776 1.599 000 1.000 222 -3.448 3.231 000 991 222 Value Std Residual a Dependent Variable: motivation Histogram of Motivation dependent variable 77 Normal P-P plot of Regression Standardized Residual Scatter plot of Motivation dependent variable 78 APPENDIX QUESTIONNAIRE Questionnaire in English QUESTIONNAIRE WORKING MOTIVATION IN HOSPITALITY INDUSTRY Please kindly provide some information about yourself and your career Gender □ Male □ Female Age □ Under 20 □ 21-30 □ 31-40 □ Above 40 Education level □ High school □ University □ Post graduated What is your hotel that you are working for? ……………………………………………………………… At present, your department that you belong to: □ Food and Beverage □ Front Office □ Housekeeping □ Others 79 What is your contract type? □ Long term contract □ Short term contract Since how many years you have been working in hotel industry? □ – years □ – 10 years □ 10 – 15 years □ More than 15 years Personal information Gender □ Male □ Female Age □ Below 20 □ 20 - 30 □ 31 – 40 □ Above 40 Education level □ Highschool □ University □ Post-graduated 80 Please express the degree of your agreement with statements given below (by circling the number): Strongly Strongly disagree agree to to Management I know what is expected of me Supervisor willing and able to help out Supervisor treats everyone equitably Supervisor lets me know how I am doing Supervisor listens to my comments Evaluations are given regularly I receive ongoing feedback that helps me I am received enough instructions to job well I am received additional training when needed Overall, working I have the materials and equipment I need to 5 I am empowered to meet customers’ needs I am encouraged to come up with new and better 5 improve my performance 10 management creates my motivation Working conditions 11 my work right 12 Progress and procedure allow me to effectively meet my customers’ needs 13 I am offered a work-life balance environment for employees 14 15 81 ways of doing things 16 My manager and I discuss my individual goals 5 The goal setting for task in achievable Overall, Overall, my working conditions creates 5 5 5 5 I have opportunity to be cross – trained My company posts job openings so existing 5 for each year / semiannual 17 My manager and I have identified ways I can develop in my career 18 19 my working motivation Recognition 20 People are rewarded for meeting customerquality assurance goals 21 The compensation / benefit system that is communicated to employees 22 People are rewarded/ recognized for meeting their goals/ objectives 23 Work teams rewarded/ recognized for meeting their goals/ objectives 24 Overall, recognition creates my working motivation Development 25 I am offered diversity training 26 I am offered team-building training for employees 27 28 employees can apply 29 My company supports promoting employees from within 82 30 Overall, development creates my working Overall, my hotel creates my working motivation motivation 31 Thank you for your cooperation! 83 Questionnaire in Vietnamese BẢNG KHẢO SÁT ĐỘNG LỰC LÀM VIỆC TRONG NGÀNH KHÁCH SẠN Xin anh/ chị vui lòng dành chút thời gian trả lời câu hỏi Các thông tin cá nhân hay câu trả lời anh chị giữ kín hoàn toàn Khách sạn anh/ chị làm việc? Hiện tại, anh/chị làm việc phận nào? □ Food and Beverage □ Front Office □ Housekeeping □ Khác (xin ghi rõ tên phận): Hợp đồng lao động anh/ chị dạng hợp đồng gì? □ Hợp đồng dài hạn □ Hợp đồng ngắn hạn Anh/ chị làm việc ngành công nghiệp hiếu khách bao lâu? □ – năm □ – 10 năm □ 10 – 15 năm □ Nhiều 15 năm Thời gian anh/ chị làm việc khách sạn □ – năm □ – năm □ - năm □ Nhiều năm Thông tin cá nhân Giới tính 84 □ Nam □ Nữ Tuổi □ Dưới 20 □ Từ 20 – 30 □ Từ 31 – 40 □ Trên 40 Trình độ học vấn □ Trung học phổ thông □ Đại học □ Trên đại học Anh/ chị vui lòng cho biết mức độ đồng ý mệnh đề sau (bằng cách khoanh trịn số) Hồn Hồn tồn tồn khơng đồng ý đồng ý Cách quản lý Tơi biết kỳ vọng tơi 3 Người giám sát có khả sẵn sang giúp đỡ Người giám sát đối xử công với nhân viên 5 Người giám sát lắng nghe ý kiến Việc đánh giá lực diễn thường xuyên quyền Người giám sát cho biết làm việc 85 Tôi nhận phản hồi giúp phát triển 5 Tôi nhận huấn luyện cần thiết Nói chung, cách quản lý tạo động lực cho làm việc 5 5 5 5 5 lực làm việc Tôi nhận đủ dẫn để hồn thành tốt cơng việc 10 Nội dung công việc 11 Tôi nhận đủ thiết bị công vụ để làm tốt công việc 12 Quy trình thủ tục làm việc cho phép đạt mục tiêu cách hiệu 13 Tôi tạo môi trường làm việc cân với sống riêng 14 Tôi trao quyền làm việc để đáp ứng nhu cầu khách hàng 15 Tôi khuyến khích tạo cách thức làm việc tốt 16 Quản lý thảo luận mục tiêu cá nhân hàng năm nửa năm 17 Quản lý xác định hướng phát triển nghề nghiệp 18 Tôi có khả hồn thành u cầu cơng việc 19 Nói chung, điều kiện làm việc tạo động lực cho làm việc Khen thưởng Công nhận lực 86 20 Nhân viên khen thưởng đạt mục tiêu 5 5 Tơi tham gia nhiều khóa huấn luyện đa dạng Tôi tham gia khóa huấn luyện team- Tơi có hội huấn luyện chéo (cross – training) Khách sạn thông báo vị trí trống để 5 5 đảm bảo chất lượng phục vụ khách hàng 21 Những chương trình tưởng thưởng nhân viên thơng báo tồn khách sạn 22 Nhân viên khen thưởng/ công nhận họ đạt mục tiêu làm việc họ 23 Nhóm làm việc khen thưởng/ cơng nhận hồn thành mục tiêu làm việc họ 24 Nói chung, việc khen thưởng công nhận tạo động lực làm việc cho Học hỏi phát triển 25 26 building cho nhân viên 27 28 nhân viên ứng tuyển 29 Khách sạn hỗ trợ việc thăng chức cho nhân viên 30 Nói chung, việc học hỏi phát triển tạo động lực làm việc cho 31 Đánh giá chung, khách sạn tạo động lực làm việc cho Xin cảm ơn hợp tác anh/ chị! ... factors affecting to employees’ motivation in hotel industry in Ho Chi Minh city? ” and determined level of affecting of each factor on motivation The result is there were four factors affecting to employees’. .. promotion are four factors which affecting to hotel employee’s motivation in Ho Chi Minh city context Keywords: employee motivation, hotel industry, recognition, Ho Chi Minh city Contents ACKNOWLEDGE... system of working motivation level in hotel industry In reality, this research will help Managers who working in hotel industry in decision making in human resource management, creating appropriate