The Effect of Employees Performance on Organizational Performance in Malasyan Hotel / Hospitality Industry

Chapter 1: Introduction

1.1 Introduction

Organizational performance depends upon the working behaviour of the employees within the organization. Therefore, management of the organizations needs to provide effective training facilities to the employees in order to improve their level of skills which in turn will affect the rate of profit earned by the organizations. Besides providing effective training to the employees, the management needs to motivate the employees so that their level of skills can get enhanced. One of the main areas that affect employee performance is the wage consideration, which often gets ignored by management and therefore the instance of improper work performance occurs. Work performance on another hand affects the organizational stance and productivity, better work performance, empirically raises the bar of service in organizations. Employee performance depends upon the set of working standards set by the organizations. Kuala Lumpur, the heart of Malaysia is one of the commercial tourist destinations and is in need of greater talent pool to keep the taste buds of tourists satisfied. However, employee performance and its service quality seem to be lacking in this industry. Therefore, the main motive of the study is to analyze the effect of employee performance on the Hotel Industry of Malaysia.

1.2 Background of the study

The works of Anitha (2014) has proved that Malaysian Economy is highly dependent on the tourism and Hotel industry. The scholar has also mentioned that due to the hospitality industry Malaysian foreign exchange revenues, national income and rate of employment has also been enhanced. In addition to that Malik et al. (2015), has also mentioned that the Government of Malaysia has launched “Visit Malaysia year campaign” in order to attract a large number of tourist. Moreover, in order to meet the demand of the tourism sector at the end of 2017, 3126 new hotels have been inaugurated in Malaysia. On the contrary, in the year 2016, the overall rate of hotel establishment was 2,879. Thus, it can be mentioned that the hotel industry of Malaysia has witnessed a growth of 8.28% in the present financial year, but failed to keep an eye on employee perspectives (, 2018).

Figure 1: The Growth rate of the hotel industry in Malaysia

(Source:, 2018).

Moreover, it has been noted that most of the hostels are being inaugurated in and around Kuala Lumpur. Some of the hotels that have been inaugurated at Kuala Lumpur are Mercure Kuala Lumpur, Sofitel Kuala Lumpur and Hilton Garden Inn Kuala Lumpur.  In the financial year 2016, 25.9 Million of Tourist has visited Malaysia. Therefore, the tourism and hospitality sector has witnessed RM82.2 billion profit. On the other, hand in the present financial year, the sector has failed to meet the desired target of earning RM114 billion profit (, 2018). As per the comment of Pan (2015), the Malaysian hotel industry has created more than 238.2 Million of Jobs. Thus, it can be stated Malaysian economy is largely dependent on the tourism and hotel industry. As per the comment of Ali (2015) Malaysian tourism and hospitality industry is earning a high rate of profit because of infrastructural development and low value of Ringgit. Moreover, it has been mentioned the Human resource management of the hospitality management need to improve their work culture so that the employee retentivity rate can be enhanced.

Currently, the report of hotels and hospitality survey has stated that 33% of Australian Hotels has made a shift in their basic salary structure in order to increase the retentivity rate of employees. Moreover, Government of Malaysia has also stated that the hospitality industry of Malaysia needs to provide a basic salary of RM.1000 per month to all the employees of Peninsular Malaysia region and RM 920 for the employees of East Malaysia. Lastly, it has been mentioned that hoteliers were facing a challenge in maintaining a work-life balance. Therefore, they were shifting to other sectors (, 2018).

Figure 2: Revised salary of the hotel industry

(Source:, 2018)

1.3 Problem   statement

As per the report presented by The Star Online in Malaysia, Hotel industry is said to be the third largest contributor to the economy. The report has further stated that the tourism sector contributes RM.73.3 Billion into the economy.  Moreover, the main motive of the tourism sector is to earn RM.168 billion by the year 2020 (, 2018).  As per the comment of Pan (2015), the employee turnover rate of Malaysian Hospitality industry is increasing at a rapid rate because of discrimination in the workplace. The scholar has further mentioned that due to the discrimination the employees get highly demotivated. Thus, they prefer to join some other sectors which in turn affect the performance of the organization. For instance, in the present financial year, the tourism sector of Malaysia has expected to receive RM 118 Billion profit. However, the original rate of profit was RM. 31.8 Billion. Thus, the government has failed to achieve the targeted profit. As per the report presented by Malay Mail, Human Resource Department of Malaysian government has restructured Employment Act, 1955 in order to address the issues related to workplace discrimination. Previously, the women employees of the Malaysian hotel industry were bound of wear head scarfs so that they can be differentiated from the male employees. On the contrary, 13 Hotels have adapted no scarf policy in order to maintain employee equality within the organization and 61 Hotels have not set the policy yet in order to maintain their organizational performance. For example, four Hotels situated at Johor was against the policy of wearing a headscarf because it might hurt the sentiments of female workers because which the employee turnover rate might also get increased which in turn will affect the organizational performance. Lastly, the federal constitution has stated that the management of the hotel industry is free to decide their working norms in order to maintain their performance in the market. The works of Al et al. (2016) has mentioned that the rate of profit earned by the hospitality industry of Malaysia is witnessing a downfall because of employment discrimination. Moreover, Amin et al. (2017), has suggested that the management of the hotel industry need to constantly update their services because they face stiff competition in the market not only from the local organizations but also from the global market.

As per the hotel survey report, customers are highly satisfied with the service that is being provided by the hotels because they hardly care about service quality such as infrastructural development.  In Malaysian Hotel industry, the rate of employee turnover has been increased by 18% which is considered to be double as compared to the other industrial sector. On the contrary, in the 2015-2016, the employee turnover rate was 16%. Thus, it has been proved that in the current financial year the retentivity rate has been decreased by 2% which in turn has affected the overall performance of the organization (Tan, 2018).

Figure 3: Employee turnover increasing

(Source: Tan, 2018)

Moreover Homestays with other emerging hotels like Vertigo also poses a great threat to the market share of the hoteliers. As per the comment of Amin et al. (2017), the employee turnover rate is increasing because the employees find the hospitality industry to be boring and stressful with irregular working hours and little training. Moreover, lack of communication and coordination among the employees and management also affects the organizational performance. The current state is that employee performance is degrading but the hotel industry needs to revamp its services for keeping its revenue count active and contribute to country GDP. In this case, the study upon employee challenges and underlying factors of the same would be empirical.

1.4 Research questions

The research question related to the study has been discussed below:

  • What is the importance of Employee performance within the Hotel Industry?
  • How employee performance and organizational performance is related?
  • What is the relation between employee and organizational performance?
  • What are the challenges faced by the Hospitality industry of Malaysia?
  • What are the ways of mitigating the challenges faced by the Malaysian Hotel Industry?

1.5 Research objectives

The research objectives have been discussed below:

  • To highlight the importance of employee performance on the hotel   industry
  • To highlight the factors affecting the employee performance
  • To establish  the relationship between employee and organizational performance
  • To analyze the challenges faced by Malaysian Hospitality management?
  • To mitigate the challenges faced by the hospitality industry?

1.6 Significance of the study

The present study has highlighted the importance of employee performance in determining organizational performance. In addition to that the management of the hospitality management needs to arrange for training services at regular interval so that the skills of the employees can be improved.  Further, the management needs to fix the flexible working time for the employees so that they can maintain work-life balance. Moreover, employee satisfaction helps to increase the productivity of the organization in the market. Thus, it is necessary to study the factors affecting employee performance. Lastly, it can be mentioned that this study will help the management of the hotel industry to overcome the challenges so that their future profitability can be enhanced.

1.7 Scope of chapters

In order to conduct the research in a systematic manner, it has been divided into five chapters such as introduction, literature review, methodology, data analysis and conclusion. In addition to that in the introductory chapter the background of the study has been surfaced so that the relationship between employee and organizational performance can be analyzed. Further in the introductory chapter the issues related to the Malaysian Hospitality industry has also been highlighted in order to understand their present trend. Even the objectives and research questions are determined in the concerned chapter. Therefore the scope of core area of study is clear from this chapter. In the literature review section, the issues related to the hospitality industry will be studied in depth by analyzing theories like Maslow’s motivational theory,   Herzberg Two factor theory and Path-Goal theory. Moreover, previous articles will also be analyzed in order to project the importance of employee’s performance upon an organization. By analyzing the previous articles the factors affecting employee performance, the impact of employee performance and the challenges of employee performance will also be discussed so that the outcome of the study becomes effective. However, there can be literature gap in the materials studied and therefore to fulfill the same, primary and secondary data collection methods would be considered. Further, the collected data will be analyzed through quantitative and qualitative analysis in order to get authentic and systematic results of the study. Lastly, the findings of the study will be deduced in the conclusion section, which would lead to the final point of developing recommended measures to address the persisting issues.

1.8 Outline of   chapters

Figure 5: Outline of the study

(Source: Created by the learner)

1.9 Definition of terms

The terms that will be explained have been discussed below:

Job satisfaction

Job satisfaction is referred to one’s positive response towards the job role that is being performed by the individual within a workplace.  In addition to that in order to enhance job satisfaction among the employees the management of the organizations needs to establish a positive relationship with the employees so they can get motivated (Anitha, 2014). Hence, it can be mentioned that job satisfaction and organizational performance is interrelated.

Work environment

Work environment defines the condition of the workplace. In addition to that working environment also affects the performance of the employees along with the organizational performance. The working environment is divided into two types’ physical environment and psychological environment. For instance, the working environment needs to be clean and safe so that the employees can get motivated to work (Anitha, 2014).

Employee performance

Employee performance is defined as the capacity of an employee to perform individual organizational duties. In addition to the employee performance can be enhanced if the management of the organization provides proper training to the employees who in turn will enhance their level of skills (Tahir and Monil, 2015).  Moreover, employee performance also depends upon the motivational level. For instance, management of organizations can provide incentives and appraisals to the employees for motivating them. Further, it is needed to be mentioned that if the employees are motivated their level of skills will also get enhanced. Thus, the profit level of the organization will also get enhanced. Thus, it can be mentioned that organizational performance and employee performance are interrelated.

Chapter 2: Literature review

2.1 Introduction

The chapter illustrates about literature regarding elements of employee performance from the context of theories and models relevant to the main theme of research. Elements like employee motivation, behaviour and leadership style that can directly influence the character of employee performance are reviewed from the context of theories.  Review of the motivational theory of Herzberg, Maslow and path-goal leadership theory helps to highlight physical aspects of Hotel industry that can directly change employee performance pattern. Employee psychology is discussed from the context of reactance and expectancy theory, which can instigate motivators of employee performance. Separate outline of the independent and dependent variable is needed to be drawn to minimize the risk of skipping elements from the research. Interdependence of these elements makes employees of hotel industry work at their best in huge work pressure. A framework of connectivity among elements can be prepared to draft a clear relationship among dependent and independents variables with respective theories. 

2.2 Theories relevant to study

2.2.1 Herzberg’s motivational theory

Frederick Herzberg developed a behavioural theory of employees on which job-satisfaction and dissatisfaction elements are directly dependent. Hygiene factors and motivational factors are two types of elements those can either positively or negatively influence human psychology to accept or decline job satisfaction level.

Figure 2.2.1: Herzberg’s two-factor motivation theory

(Source: Alshmemriet al. 2017, p. 15)

  1. Hygiene factors

Hygiene factors ensure the existence of motivational factors in a corporate ambience. According to Alshmemriet al. (2017), working ambience, relationship with colleagues, commercial policies and regulations, quality of leadership and remuneration are the primary factors of corporate hygiene. Though these factors do not positively influence job satisfaction, yet the absence of hygiene factor from the corporate culture can generate job dissatisfaction. Employment environment is influenced by these extrinsic employment factors that are dependent on the needs of the individual employee. Main needs of an employee are drafted according to the first impression of an individual regarding profit margin and market acceptability of an organization. Job security and practice of cooperation and amicable communication can make an employee motivate to act in a friendly way. However, as per Yeboah and Abdulai (2016), the rigid company policies sometimes hinder to follow the friendly relationship with co-workers to ensure employee focus on a particular job. Physical conditions like a safe and clear office with fringe benefits like insurance, mediclaims can establish a friendly interpersonal relationship with employee and employer. On the other hand, the reverse can deteriorate image of work condition and de-motivate employee to stay in the hotel industry employment opportunity. Hygiene factors are influential to make an employee primarily get engaged to a commercial sector. On the contrary, as argued by Güsset al. (2017),too many ups and downs in expected credentials and the presented one entertain conflict between employer and employee. Arguments between employee and proprietor make the corporate situation very critical to maintain the current competitive status of the organization intact. Hotel industry faces implications regarding maintenance of a satisfactory job ambience as employees of this industry already holds high expectations that give birth to conflict.   

  • Motivational factors

Motivational factors like recognition, achievement and personal growth motivate an employee to deliver superior work performance in the allocated sector. These intrinsically rewarding factors are very catchy to an employee and can lift their job stress and grudges against the workforce. Recognition makes an employee praised by superiors that make the person motivate accomplishing more thought goals in the industry. As opined by Stoyanov (2017), tangible achievements like rewards, increment as well as intangible achievements like promotion make an employee force to enforce their best in respective fields. Personal employment responsibility enhances the quality of the job that in terms make an employee satisfied with the personal performance. Accountability and motivational growth contribute to personal development that can satisfy the individual needs of customers thereby employees. Advancement of personal knowledge regarding job responsibility makes an employee expertise the job opportunity and can contribute to the training of new employees. Acting as a leader motivates a hotel employee to get interested to earn more respect from subordinates and enhance the personal productivity of employees.

The theory is dissatisfactory to outline the influence of situational variables, correlation of productivity and comprehensive measure of employee satisfaction level. The theory also uses no comprehensive measure to determine employee satisfaction that creates volatility in the acceptance and refusal of a job by an employee. According to the view of Fox et al. (2018), the theory is entirely based on the neutral expression of employees in the course of job satisfaction that can be changed with the perspective of every employee working in that industry. Despite these major limitations, the theory also excludes the participation of blue-collar workers who perform the responsibility of manual labour in an organization. Basic level employees like sweepers and maids of a hotel are excluded from the motivational aspect as the availability of these employees are high and the job expectation is respectively low. However, the theory makes management of hotels like Hyatt to comprehend the importance of guaranteeing adequate hygiene factors and stipulating motivational factors.                    

2.2.2 Vroom’s expectancy theory of employee performance

Delicate management of human resource in a commercial organization can be manipulated by activities of managers and employees to enlarge expectancy of job performance. Motivation helps managers of hotels in Kuala Lumpur to derive persistence and intensity of employee performance to ascend company productivity.

Figure 2.2.5: Elements of Expectancy theory

(Source: Influenced by Lloyd and Mertens, 2018)


The action of expectancy develops from the ideation of a certain result that is believed by an individual in terms of obtaining a result. The factor makes an individual become interested to pursue a certain activity in the employment. As illustrated by Lloyd and Mertens (2018), expectancy can be applied on workforce performance enhancement as it can positively enhance expectancy of a commercial practice. However, the rigid idea of getting a certain result from strategy implementation prevents opportunities of innovation and development in the business terms. An expectation of individual employee amplified as the workforce productivity of the organization obtained great profit from the market. In the words of Ryan (2017), the greater profit margin is going to help the management of organization enhance employee motivation by sharing profit earned by the corporation. An employee becomes de-motivated and starts a conflict with management when their expectation of wages and additional benefits of employment is not met adequately.   


This concept develops a pasteurisation of meeting expectations of a commercial product to the targeted extent through rigorous practice of effective employee performance and motivation. The practice of instrumentality like effective communication tool, motivational theories and strategic measures of business development makes employees of a hotel enhance the personal skill of customer interaction and management that can ascend employee performance standards of the hotel. Modernisation of hotel instrument is essential to gather more response of employee and greater quality service to customers, who in terms encourage their job role and enhance profitability. Training and development of employees is a very rare practice as a hotel having a greater workload and busy work schedule fails to accommodate such developmental programs.


Valence refers to the strength of a mythical belief that obtaining the targeted value of result can make an individual become successful to meet the practical demand of organization. According to Kiatkawsin and Han (2017), valance in the expectancy theory brings a synchronous commercial environment in commercial bodies of a particular industry. Innovation and other modern era practices help in developing a positive image of customers that becomes a cause of dissatisfaction among old employees. Improper knowledge of using such equipment may reduce productivity and make the act reluctant on gathering knowledge on those customer-friendly propositions.

As per Barba-Sánchez, V. and Atienza-Sahuquillo (2017), together the three forces of expectancy theory can enhance employee productivity as the force generated by multiplying expectancy and valence. It can predict job satisfaction and employee motivation that is helpful to transcend commercial value and ethics from one employee to another.

2.3 Dependant variables

2.3.1 Employee performance

Employee performance is the outcome of labour produced by an employee to meet the employment responsibilities of a particular employee. Performance of an employee depends directly upon internal and external factors of a business organization like hotels. Employee performance is directly proportional to the experience and knowledge of an employee. The more an employee spends time in hospitality sectors like hotels, the more the individual becomes accustomed to the attributes like employee satisfaction and negotiation. In the view of Nyberg et al. (2016), the productivity of an employee depends on the training and development program facilitated to an employee to modify skills and other commercial credentials. Advanced knowledge of equipment used in hotels automatically increases the performance standard of an employee with respect to others. Active participation of employees can integrate employee performance of an organization a quality of the product and service meets the trajectory value. However, as demonstrated by Tomczak et al. (2018) effective job performance can only be delivered by an employee if morals, norms and regulation of business ethics and performance are accurately memorised by an employee. On the contrary, in the case of the hotel industry, change of regular practice customer service can enhance employee satisfaction that is an actor of influencing employee performance. 

2.4 Independent variables

2.4.1. Definition of employee motivation

Employee motivation is a factor that assists employees to achieve their work related goals. As per the viewpoints of Porter et al. (2016), employee motivation is a level of energy that helps the staffs to provide their best efforts within their workplace. However, on the contrary of this view, Kuppuswamy et al. (2017) stated that employee motivation is entirely a personnel motivation that increases employees’ performance within organization. Furthermore, employee motivation helps the staffs to give their work capabilities for their own organization which also helps in skill development of employees and enhance their commitment towards work. Practically, all these things directly accelerate organizational performance in a systematic manner.

2.4.2 Reasons of choosing employee motivation as Independent Variable

From the above discussion, it has been assumed that employee performance is a dependent factor that depends on employee motivation, an independent variable. It has been seen that employee motivation increases commitment among staffs. Moreover, it helps to built satisfaction in employees. Through this motivating factor, employee performance gets accelerated contributing to organizational performance (Ristic et al. 2017). Therefore, it can be said that employee performance is based on employee motivation so motivation has become an independent variable.

It is estimated that motivation improves employee efficiency and also assists the employees to participate in an effective communication. Through employee motivation, an employee starts to value the contribution of other employees (Dagenais-Desmarais et al. 2018). This motivation enhances employee’s contribution to organizational growth and meeting of business objectives. Therefore, employee motivation has been selected as independent variable on which organization performance is thoroughly depended.

2.4.3. Definition of Motivating factors Salary

For motivating the staffs of the organizations, it is important to provide proper adequate salary to them. As discussed by Porter et al. (2016), management needs to modify salary structure of their staffs as per their needs which can motivate them to provide their best efforts for organization. As argued by Kuppuswamy et al. (2017), authority needs to provide incentives or bonus along with salary. Moreover, they can arrange rewards system for their best performers. Through this way, it can motivate the workers to contribute in meeting business needs. However, Lee and Raschke (2016) argued that deterioration of performance negatively influences organizational performance as a behavioural response of one employee influences other to act in a more casual and relaxed way that can hamper outcome production. Commercial facilities like promotion, rewards and increment not only initiate employee satisfaction but also make them motivated to work in a more productive way. Increment and promotion are two interlinked set of variables that positively influence employee motivation if properly nurtured by human resource management department.

Increment brings economic fluidity in the lifestyle of an employee that motivates them to perform is same grade of motivation to provide commercial opportunities to the hotels. On the other hand, as opined by Porter et al. (2016), promotion makes an employee commercially valuable that motivates the individual to remain in the position to become more recognised among employees. The promotion also influences the activity level of other employees as they become motivated by the active response of corporate and develop an impression of better commercial performance. Non-commercial facilities like residence and vehicles facility offered by the organization to executives motivate the employee to achieve that position to enjoy those amenities. According to Lee and Raschke (2016), recognition of performance by increasing the job satisfaction of employees acts as a motivator as it makes the employee aware of the nurturing of organizational management. Time

Working time is also very important for motivating the staffs towards their work. As per Mikkelsen et al. (2017), management needs to fix their working hours for employees as per country standards. In that case, they need to maintain 40 hours work within a week with two days off. On contrary of this view, Syafii et al. (2015) argued that management needs to give proper break during their working hours that helps employees to reduce monotonous work schedule and stress. Work schedule management is guided by creation of positive working environment.

Physical and psychological environments of an organization directly or indirectly influence the motivation of an employee that is reflected jointly through organizational performance. Employee motivation can be enhanced by an act of physical environment change like amicable work environment, rewards and non-commercial facilities, recognition and promotion. Positive work environment automatically influences an individual to act more productive as all the colleagues’ works in a productive way. Besides this positive influence, positive ambience in corporate world incorporates the act of collaboration in the workforce. As illustrated by Ristic et al. (2017), cooperation among employees helps in enhanced productivity as deterioration or absence of individual performance does not matter anymore. Job security

Job security motivates the employee to retain their employment opportunity that is respectively low in hotel industry based employees. It is also evident from the increased value of the employee turnover rate in the industry that acts as a factor of employee de-motivation. As discussed by Mikkelsen et al. (2017), the management needs to provide job confirmations and permanent contracts to their staffs that can help them to provide a job security for themselves. Moreover, it helps them to know their capabilities within the organization and secure their careers in an effective way. Such job security assurances motivate staffs to have a beteer involvement in business operations. The overall turnover rate in restaurants and hotel was 72.9% in 2016 that has increased by the value of 0.7% since 2015. It represents six consecutive increases in the value of employee turnover after the fall of value in 56.45% in 2010 (Dagenais-Desmarais et al. 2018).

Figure 2.4.1: Graphical presentation of employee turnover rates in Hotels

(Source: Dagenais-Desmarais et al. 2018)

The above depiction of current situation signifies that the hospitality industry needs to revamp their policies and look after the root cause of employee turnover rates. Work recognition increases the responsibility of an individual making the person more concern of job responsibility and increase employee performance. Motivational stances can be taken up by organisations to diminish the instances of employee turnover rates and mass dissatisfaction. Appreciation from hierarchy as well as co-workers positively influences performance individual employee in hotels. An increase in the performance of all employees automatically increases group performance that can increase the performance of the entire organization. Roles of leaders is also an essential factor of employee motivation as leadership patterns like servant leadership help in better learning of employees. It in terms enhances organizational performance as employee acknowledges better way to perform through the incorporation of innovative and modern way.         

2.4.2 Work environment

Positive and negative workforce environment can change employee performance as it moulds employee’s activity and interest to work optimally in a particular business environment. Interrelationship among management, supervisor and staffs of hotel establishes an amicable work environment that motivates employees to attend the organization daily to sustain a growth of production. According to Herhausen et al. (2018), the positive working environment can be witnessed in terms of transparency and openness in communication. The meaningfulness of organizational ethics, empathy, philosophy, mission, vision and values can be obtained through a positive working environment that also fulfils the perspective of employee performance advancement. This increases sense of emotional understanding and transfer of emotional values develops a comparatively ethical corporate environment that makes the individual employee feel secured and entertained.

Comfortable working makes employee concentrate more on the respective employment responsibilities that are going to increase employee performance. In the view of Mikkelsen et al. (2017), time lack regarding concentration and attention breach can be amended by this act of friendly work environment development. Additionally, it provides advent of new employee motivation towards learning as corporate practice of depriving and bullying naive employees can be resolved. Amiable perspective for cultural and value equilibrium may lose perishable employment drawbacks that continuously provoked to deteriorate performance and competence of that organization. Conflict regarding flexibility of work shift in hotel industry among employee can be resolved through the process of circulatory shift distribution that erase an act of fidelity among co-workers.

However, as argued by He et al. (2017), constant juggling of goals and responsibilities of an employee with time makes them build resistance against tough competition of industry. Participation in industry-specific developmental drives encourages the performance of the employee that can be reflected in their action and productivity. The act of cooperation among co-workers creates an ambience of love in the workforce that can motivate an employee work in free mind and with full satisfaction. Skill sharing practice, organizational learning and employee recognition help a hotel to maintain static and advanced employee performance level for every individual.

Work environment changes with the change of victimisation potential of employees regarding cultural differentiation. The work environment can be enriched by the practice of appreciation of different cultural values that transcend a message of cooperation among organization’s workforce (Minhas, 2017). However, more cultural practice in the hotels derives attention of employees from job responsibilities towards the celebration of the cultural event. It automatically lowers organizational productivity as a busy industry like hotels needs to pay more attention to organizational performance rather than employee welfare practices.

2.5 Relation between dependent and independent variables

2.5.1 Relation between employee motivation (IV) and employee performance (DV)

Employee motivation generally helps to build confidence among staffs which can broaden their performance. Within hotel industry, the management has motivated their staffs through providing reward system. It has enhanced employee performance and in turn has also met customers’ needs. In this way, organizational performance has also been accelerated (Mikkelsen et al. 2017). Employee performance changes alongside the change of working environment in a hotel as a work environment motivates an employee to attentively and efficiently work in the respective field. The act of appreciation, recognition and rewards like felicitations or increment motivate employee of a hotel to deliver cent per cent of their labour and creativity to increase group performance.

Initiation of innovation and development is sourced by the act of job satisfaction that makes an employee become interested to explore a more productive aspect of hospitality and hotel industry. Employee satisfaction, as well as performance, can also be enhanced by the reassuring security of employment option. As per Dabke (2016), security and freedom of job make an employee work independently without any hindrance of hierarchy that promotes innovation and development attributes of the business. Employees of the hotel industry have a greater restriction in innovation and job security concern that makes the de-motivated to accelerate their performance.

2.5.2 Relation between work environment (IV) and employee performance (DV)

Proper work environment is highly needed for each worker which can motivate them to give their best efforts. In case of hotel industry, it has been observed that staffs are facing conflicts with their managers. The prevention of workplace conflicts and stress helps in enhancing staff performance to meet organization service quality (Kuppuswamy et al. 2017). As opined by Yousef (2017), work environment develops an act of employee cooperation and skill sharing that automatically increases organizational performance standard.

Leadership style and activities are also influenced by employee performance as leaders feel enchanted when the evidence that employees work efficiently according to their direction. On the context of counter-argument developed by Mengucet al. (2016), participation in commercial activities and collaborative habit of leaders increase act of dependency in a team that can deduce outcome of the team. However, participatory leadership style can develop servant leaders who directly show ways to subordinates to work more efficiently.

2.6 Research framework

Figure 2.6: Framework of literature

(Source: As influenced by Syafii et al. 2015)

2.7 Literature gap

The literature on the influence of employee performance on the overall performance of business organizations like Hotels lacks an inadequate supply of resources while drawing literature. Some of the resources like online journals on the important and relevant issue cannot be accessed because of the authenticated access of portals. Some articles obtained from online sources failed to get access because of the only option of purchasing the articles. Some resources are refused from the review of literature because of lack of transparency in publishing house and backdated information in Hotel industry.

Lack of money also acts as a greater reason for creating a void in the literature as some books need to buy on the topic of employee management and motivation are very expensive. More time is needed to investigate the vast aspect of organizational performance among which only employee performance aspect is examined. Moreover, the literature search is based on limited number of theories, which is not adequate to judge the root cause of the problem. Moreover, there is a need to establish the fact by direct views from the employees or mangers. The scenario of the hotel industry would only be clear if the primary views of people engaged with the industry is considered for comparative analysis with theoretical viewpoints. This study is therefore committed to omit this gap by taking consideration of both primary and secondary data.

2.8 Conclusion

Herzberg’s theory of employee motivation can be practised by the management of the hotel industry in Kuala Lumpur to utilise the advent of employee motivation elements to increase employee satisfaction. Enhanced employee satisfaction positively influence active employee performance intention of a staff that contributes independently to develop organizational performance. Study of Maslow’s needs hierarchy helps in the analysis of basic, psychological and self-fulfillment needs of an individual that can be influenced by salary, employee recognition and additional benefits like mediclaim.

Path-Goal theory can be used by executives of hotels to choose the most effective leadership pattern and derives leadership behavioural style. Reactance and expectancy theory of employee performance reflects facts of psychology like stress, humiliation and expectancy that can negatively affect business performance of a hotel. On the basis of independent factors including job satisfaction, leadership and work environment, a dependent factor of employee performance is developed that mould present organizational performance standard of a hotel. As stated earlier, this study is intended to omit the gap present in the literature by proper data collection process; next chapter is directed towards the mentions of methodology obtained for data collection and

Chapter 3: Research Methodology

3.1 Research Approach

Research approach is a pre planned procedure that includes overall steps of data gathering, evaluation and interpretation. The approaches are generally divided into two prior categories which include approach of data collection from different resources and approach of analysing the data. As opined by Sekaran (2016) different research approaches helps in getting the solution of the research question and also ensures the researcher to increase the interrelation with current situation of world. The research approach is generally done incorporating two different approaches in order to analyse the research topic. The two methods include deductive and inductive approach. The deductive approach deals with elaborating a topic and evaluating it by analysing relevant information and documentation. On the other hand inductive approach helps in analysing the research in an efficient and effective way by providing an all over idea in brief about the topic (Bolin, 2014). 

Figure 3.1: Research Approach


Deductive approach has been implicated in the current topic of employee performance effect on organizational development in order to conduct the research. The reason of choosing deductive approach is interrelated with the growth of hypothetical situation. According to Yang et al (2018) this method can be considered as one of the best method in terms of analysing real life scenario. Another reason of choosing this approach is the method proceeds following a particular work pattern in order to assess the relevant information. On the contrary the research does not choose inductive approach as the process consumes enormous time and slows down the whole process of research. Along with time consumption issue the approach has another issue. That is inductive approach does not provide enough relevant data as deductive approach. This particular research project needs different methods for determining the prior outcome. Implication of the methodology would have been constrainers, if the project chose inductive approach as it would observe the pattern then provide the pattern of approach that sums up to consuming more time than deductive approach .

3.2 Research Strategy

Research strategy can be defined as a flowchart about the plan of action of a specific research that allows the researchers to conduct the research systematically. In order to understand the growth of organizational development by employee performance action oriented research strategy has been taken. According to Coghlan and Brannick (2014) action oriented research strategy refers to conducting real life interview and survey and links their research along with it. Thus it can be stated that there are two types of strategies that can be incorporated to conduct a research. That involves, Interview and Survey

Figure 3.2: Research strategy


Survey can be considered as one of the most important research strategy in order to get access to important quantitative information related to the particular topic. Maximum researchers consider survey strategy not only because the easy and reliable information access but also because survey process is cost efficient.In the specific research this research strategy has been implicated as the organizational hierarchy has conducted survey amongst the employees.The strategy has also helped to collect all the relevant data of employees of the hotel industry of Kuala Lumpur. The survey report clarifies their motivation of staying in the hospitality sector for a longer time span. This strategy was proved very effective in order to evaluate the data and also provided a profound conclusion. The specific survey strategy also involved Likert chart and close ended questions that allowed to recorded the perspective of the employees about their performance and organizational development. The survey process has been conducted on 110 employees or actual respondents. 10 employees did not cooperate. Thus, the survey can be considered conducted with 100 hospitality professionals. Another process interview has not been considered in the specific research as the organizational hierarchy of different hotels conducted the survey for evaluating employee performance effect. The reason of not considering the interview process is to avoid any partiality or biasness of a employee with the organization. It can be stated that employees can answer to question according to their situational context while the survey process is more transparent.

3.3 Research Design

Figure 3.3: Research Designs

Research design considers all the planned research strategies that assist in understanding the research framework for integrating all different aspects of the chosen topic in a proper and effective way. As opined by Kratochwill (2015) research design basically identifies the constraints and issues of the research. After identifying the issues and constraints research design outlines a framework of the analytical process and collection and evaluation of information. According to Marczyk et al (2017) the term research design deals with  the overall plan of conducting the research of the researcher, Research design generally consists three categories which involves explanatory, exploratory, descriptive design. 

Explanatorydesign generally deals with the research process itself in the contexts that involves the innovation and formation of new beliefs and idea about the current topic. The design works based on different perspective judgement about a specific aspect. According to Lewis (2015) explanatory design does not need any hypothesis formulation.

Exploratory design is mainly incorporated in order to understanding and solving a research problem. This type of design mainly works better when the area of the study is less. According to Kratochwill (2015) this design is basically focused on post investigation process in order to gain vivid idea about the real life problems by conducting the basic stage of investigation on a organization.

Descriptive design is traditionally used in order to analyse case study examples and observations. As opined by Marczyk et al (2017) descriptive design can be defined as a traditional theory based design. The designing process method relies on collection and presentation of secondary data from various sources, such as newspaper, public review, and documentary and from public comment as well.


The specific research on hospitality profession in order to understand and improve organizational performance has relied on the importance of descriptive design. It is because of the fact that the descriptive design helped in identifying both reliable and unreliable variables. In this prior topic of research dissertation only reliable variable is mentioned as the research has been conducted on real life individuals. This aspect come up with the result that only descriptive approach can be considered as the best approach for proceeding with this research. Along with it another advantage of implementing the descriptive approach is that it allows the prior research to use both qualitative and quantitative information for finding the relevant aspects of conducting real life situational example for the understanding of organizational performance. While on the other hand the report has denied the consideration of other two designing approach. It is because of the factor of unavailability of the relevant information in relation to the topic. From the research it can be also stated that if the other two research designs were selected then those designs would not have provided all necessary information that tantamount to not getting the desired outcome. The problems of using other two methods are those methods cannot be considered as a proper method for measuring employee performance impact as they does not provide detailed information about the topic.

3.4 Research Method

Research method basically outlines the systematic framework of the dissertation. According to Dang and Pheng (2015)research methods creates or modifies any strategic framework of a specific research.This research procedure assists in performing test presumption on different experiments in the hospitality industry such as hotels and other accommodating places. In this part, research approach, research strategy, research data analysing anddata tools have been thoroughly described. Various data collection methods will be clearly defined with their influence in the specific industry as well. Illustrative tools and techniques, data validity as well as data reliability will deal with the framework process of the organisation in order to create a proper idea about the growth of organizational performance in current competitive market. As demonstrated by Noble and Smith (2014) different research methodologies helps in order to collect appropriate information and applicable innovative ideas that are related to the topic.


In order to proceed with further analysis or implication in relation to the impact of employee performance on organizational growth the research needs to consider different research methodology such as approach of research, research strategy and others. This specific part of the research gives brief outline of techniques and tools used in the research methodology chapter. The following table will provide a basic idea about the research framework.

Research methods Tools used
Research Approach Deductive
Research Design Descriptive
  Research Strategy Survey
  Data collection method   Quantitative method (professionals of hospitality industry)
  Information sources Primary (Survey)
Secondary (relevant  journals, books and websites)
  Method of Sampling   Probability (Simple random sampling) [survey]
  Sample Size 100 Hospitality industry professional
Tools and techniques considered Research methodologies
Table 3.4: research methods

3.5 Data Analysis

In order to analyse company information data needs to be gathered. Different scholars opine that there are various type of data collection method that consist primary data collection secondary data gathering and others. As opined by Stuckey (2014) the data collection method on the deductive research approach generally relies on primary and secondary data gathering method. Primary data gathering includes collection of raw information from current practical reports on the other hand secondary data gathering deals with extracting information from formerly sourced data. 

Figure 3.5: Data collection method

The auxiliary tools of data analysis includes qualitative and quantitative data collection tool. According to Noble and Smith (2014) there are basically two variants of data collecting tools involving the collection of data in the dissertation, the two techniques are qualitative technique and quantitative data collection. Marczyk et al (2017) states that the qualitative process highlights relevant information while on the other hand quantitative process liberates the basic problem of a process by providing way of generating useful data.

Figure 3.6: Auxiliary tools for data collection

In order to analyse different data and their reliability the information gathering techniques and various data collection must be incorporated. In the specific research work has considered both primary and secondary quantitative data tool for the proper execution of the project. In order to collect information of survey observation from the participants primary quantitative technique has been incorporated as it includes close ended one to one questioning method. Quantitative research has been followed up for research in order to easily analyse and evaluate their issues and rectify it by implicating proper method. This study also involves the quantitative research in order to increase the relevancy of data. Secondary quantitative data been gathered from different journals and books in order to understand the basic concept of different methods. While on the other hand the research does not follow any qualitative approach for gathering data. It is because the topic is about employee performance and conducting personal interactive session can result in sabotaging data as there is a chance of biasness by the employees about their co workers.

3.6 Reliability and validity

Reliability can be considered as a degree by which an evaluation technique produces consistent and stable outcomes. As opined by Koys (2017) data reliability is the auxiliary assessment tool or technique which helps a business organization to provide consistent and stable outcome. There are basically four types of data that are considered reliable data. That involves test, inter-rate, the internal consistency and parallel.

Validity can be referred as the measurement of the purpose of a reliable data source. According to Yang et al (2018) Validity assist the business organization for measuring the efficiency of survey or interview practiced in the enterprise. Four types of validity assist in measuring data sources that includes face, criteria, the formative and construct,

In the research the reliability is unquestionable as it contains authentic information from employees about their performance and impact on organization by conducting through survey amongst the employees that included close ended question. In addition to it the validity of the research can be considered as sufficient as the survey participants were co operative and the survey was conducted in current time. That allowed the research to collect and analyse enough data from executives from the stated sector.

Chapter 4: Data analysis

4.0 Introduction

Employee performance highly persuades the organizational growth and performance as well. Different organizations in hospitality sector provide adequate training to their employees in order to improve their operational skills. Organizational development in tourism industry or to be more precise in accommodation segment can be defined as maximization of the brand value and getting more customers. Hotels spend huge amount of revenue to train their staff to mitigate requirements of the guests that enables the accommodator to increase their customer reach. 

4.1 Response rate

Response rate gives important accuracy results into the collected survey data. According to Sekaran and Bougie (2016) a response rate can be considered as the number of individual who cooperated and provided relevant survey data. In the specific research the survey was conducted on 100 number of hospitality executives that are connected with hotel segment of the sector.

4.2 Data coding and data entry

In the research analysis the term data coding refers to bringing out the relevance and validation of collected data while data entry deals with sorting the data into right categories.

 4.2.1 Data coding and entry

 The survey result deducts that different questionnaire of employee performance , motivation, work environment and other variables are coded that are proved as relevant data for improving accommodators’  organizational performance.

4.3 Preliminary data screening

 Data screening is considered as a process of ensuring the data reliability. According to (Stuckey, 2014) data needs to be screened as per the usable and reliable data. In this research the data has been screened after thorough evaluation of different variables of data entry and coding. The different variables include neutral, agreeable and disagreeable aspects of a specific question.

4.3.1 Data error checking

 Error checking is a process that ensures data retrieval validity and reliability. In the research there was no such error found as the primary qualitative approach of surveying employees became successful as the employees cooperated. The secondary approach is relevant as current journal and books are being considered for the report.

4.3.2 Missing data

Missing data refers to the absenteeism of specific information. In this case no such missing data has been found as the professionals from the industry priory cooperated with the survey and provided valid and relevant information.

4.3.3 Normality test on dependent variables: Organizational performance Normality test of successful to meet target criteria

Tests of Normality
  Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Successful_to_meet_target_criteria .184 100 .000 .906 100 .000
a. Lilliefors Significance Correction
Table Normality test of successful to meet target criteria

(Source: SPSS)

The above table reflects results that have been analyzed from the normality test like Kolmogorov-Smirnovand Shapiro-Wilk. Therefore, based on the above table it has been found that significant value is 0.00 which is less than 0.05 which states that the dependent variable is normal and observations are distributed symmetrically across the means. Normality test of growing market share

Tests of Normality
  Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Growing_market_share .164 100 .000 .907 100 .000
a. Lilliefors Significance Correction
Table Normality test of growing market share

(Source: SPSS)

Based on the above table it has been found that dependent variable of growing market share  is significant as the value is equal to 0.00 and less than 0.05. This implies that the dependent variables are normal and all the related observations are distributed equally across the means. Normality test of experiencing high competitive advantage

Tests of Normality
  Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Experience_high_copetitive_advantage .209 100 .000 .898 100 .000
a. Lilliefors Significance Correction
Table Normality test of experiencing high competitive advantage

(Source: SPSS)

On the basis of the above table it has been analyzed that normality test of experiencing high competitive advantage is effective as the significant value is less than 0.05. Even, it can be said that the dependent variable is equally distributed around the mean. Normality test of avails all of the resources strength

Tests of Normality
  Kolmogorov-Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Avaials_all_of_the_resources_strength .159 100 .000 .913 100 .000
a. Lilliefors Significance Correction
Table Normality test of avails all of the resources strength

(Source: SPSS)

As per the above table and the results it can be analyzed that the dependent variable, avails all of the resources strength, is effective and significant to the mean. This is because the mean value found to be appropriate wit 0.00 which is less than 0.05.

4.4 Demographic profile

4.4.1 Gender

What is your gender?
Options Total number of respondents Number of responses Percentage of total responses
Female 100 32 32%
Male 100 68 68%
Table 4.4.1: Gender of the responses

(Source: SPSS)

Figure 4.4.1: Gender of the responses

(Source: SPSS)

The above table and graph reflects that about 44% of the 100 responses are female on the other hand, 68% of 100 respondents are male. Therefore, it can be analyzed from the above data and information that both female as well as male participants have shown interest over the topic. Therefore, no gender discrimination has been found within the research study.

 4.4.2 Age group

Which age group defines you?
Options Total number of respondents Number of responses Percentage of total responses
18 Years and below 100 8 8%
19 to 20 Years 100 18 18%
21 to 30 Years 100 25 25%
31 to 40 Years 100 29 29%
41years and above 100 20 20%
Table 4.4.2: Age group of the responses

(Source: SPSS)

Figure 4.4.2: Age group of the responses

(Source: SPSS)

On the basis of the above table and graph it has been found that 29% of the overall respondents that is 29 of them are under the age group of 31 to 40 Years. On the other hand, it has been found that minimum respondents are under the age group of 18 Years and below that constitutes of 8% over the overall respondents. Therefore, based on the above result it can be analyzed that the most of the respondents are above 20 years of age therefore, it can be said that the findings will be accurate as most of them have general knowledge over this topic.

 4.4.3 Education level

What is your education level?
Options Total number of respondents Number of responses Percentage of total responses
Secondary Level 100 18 18%
Certificate 100 30 30%
Diploma 100 18 18%
PHD 100 15 15%
Others 100 19 19%
Table 4.4.3: Education level of the responses

(Source: SPSS)

Figure 4.4.3: Education level of the responses

(Source: SPSS)

On the basis of the above table and graph it can be said that most of the respondents that constitutes of 30% holds certificates. However, only 18% of 100 respondents have education level till secondary. Even, there are several respondents constituting of 15% who has relative degree on PHD. Therefore, it can be said from the above analysis that most of the respondents have minimum level of education to provide appropriate answers and relates with the topic of the research.

4.4.4 Years working as a professional

How many years you are working as a professional
Options Total number of respondents Number of responses Percentage of total responses
2 Years 100 35 35%
5 Years 100 29 29%
7 Years 100 21 21%
10 Years or more 100 15 15%
Table 4.4.4: Working experience of the responses

(Source: SPSS)

Figure 4.4.4: Working experience of the responses

(Source: SPSS)

It has been found from the table and graph above that most of the respondents have minimum working experience of 2 years that constitutes about 35% of 100 respondents. On the other hand, only 15% of the overall respondents have 10 Years or more experience of working as a professional over this industry. Therefore, it can be said that information has been gathered from different levels of professionals about the topic. This has certainly helped in making the study more relevant and accurate.

4.5 Exploratory data analysis

4.5.1 Validity test Validity test of employee performance

Case Processing Summary
  N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Table Validity test of employee performance

(Source: SPSS)

Scale Statistics
Mean Variance Std. Deviation N of Items
12.9700 31.363 5.60024 4
Table Scale statistics

(Source: SPSS)

Based on the above data and information it has been found that test of employee performance is valid as all the data has been incorporated accurately. Even, mean value has been found to be 12.9700 and Std. Deviation valued at 5.60024. Validity test of employee motivation

Case Processing Summary
  N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Table Validity test of employee motivation

(Source: SPSS)

Scale Statistics
Mean Variance Std. Deviation N of Items
11.7200 24.608 4.96061 4
Table Scale Statistics of employee motivation

(Source: SPSS)

Based on the above data and information it has been found that test of employee performance is valid as all the data has been incorporated accurately. Even, mean value has been found to be 12.9700 and Std. Deviation valued at 5.60024. Hence, it can be said that the variable is valid to meet the research questions. Validity test of work environment

Case Processing Summary
  N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Table Validity test of work environment

(Source: SPSS)

Scale Statistics
Mean Variance Std. Deviation N of Items
12.2500 23.583 4.85627 4
Table Scale Statistics of work environment

(Source: SPSS)

On the basis of the above tables it can be analyzed that validity test of the dependent variable, work environment, is effective. It has been found that all the input data are effective and related to the study. This will certainly make the study more accurate with is aim and objectives. Validity of communication flexibilities

Case Processing Summary
  N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Table Validity of communication flexibilities

(Source: SPSS)

Scale Statistics
Mean Variance Std. Deviation N of Items
12.6000 22.404 4.73329 4
Table Scale Statistics of communication flexibilities

(Source: SPSS)

The above table reflects validity test of the independent variable communication flexibilities. Therefore, it can be analyzed that all the data that has been incorporated into the test are relevant and accurate as excluded amounts to be 0. Validity of training and development

Case Processing Summary
  N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Table Validity of training and development

(Source: SPSS)

Scale Statistics
Mean Variance Std. Deviation N of Items
12.3300 27.334 5.22824 4
Table Scale Statistics of training and development

(Source: SPSS)

Based on the above table it has been found that independent variable, training and development, is valid as there are no as such data that has been excluded during the SPSS analysis. Validity of organizational performance

Case Processing Summary
  N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Table Validity of organizational performance

(Source: SPSS)

Scale Statistics
Mean Variance Std. Deviation N of Items
12.1300 22.902 4.78562 4
Table Scale Statistics of organizational performance

(Source: SPSS)

On the basis of the above validity test it has been found that dependent variable, organizational performance, is valid as no data has been excluded during imputation. Even, the excluded amount found to be 0.

4.5.2 Reliability test Reliability test of employee performance

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.990 .991 4
Table Reliability test of employee performance

(Source: SPSS)

Performing the reliability test of the independent variable employee performance it has been found that Cronbach’s Alpha valued to be .990 which is more than 0.5. This implies that the overall data related to this variable is reliable to the study. Reliability test of employee motivation

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.984 .984 4
Table Reliability test of employee motivation

(Source: SPSS)

Based on the reliability test result it has been found that Cronbach’s Alpha Based on Standardized Items of independent variable, employee motivation, is 0.984 which is more that 0.5 and confirms to be reliable to the research topic. Reliability test of work environment

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.985 .985 4
Table Reliability test of work environment

(Source: SPSS)

On the basis of the data reflected above from the reliability test of independent variable, work environment, it has been found that Cronbach’s Alpha is .985 which is more that minimum level of 0.5. Thus, it can be said that variable is reliable to the topic. Reliability test of communication flexibilities

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.988 .988 4
Table Reliability test of communication flexibilities

(Source: SPSS)

The above table reflects that reliability test of communication flexibilities which have aCronbach’s Alpha amounting to .988 that is more than 0.50. Hence, the result shows that the independent variable is reliable to the topic. Reliability test of training and development

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.989 .989 4
Table Reliability test of training and development

(Source: SPSS)

Performing the reliability test of an independent variable, training and development, it has been found that Cronbach’s Alpha is .989 which is more than 0.50. Hence, the variable is reliable. Reliability test of organizational performance

Reliability Statistics
Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items N of Items
.987 .988 4
Table Reliability test of organizational performance

(Source: SPSS)

Based on the above table it has been found that Cronbach’s Alpha of the reliability test of dependent variable organizational performance is .987 which is more than 0.50. Thus, it can be said that the dependent variable of the study is reliable as well (refer to SPSS file).

4.5.3 Correlation test Correlation analysis of employee performance

On the basis of the results that have been found from the correlation analysis made in SPSS it has been found that dependent variable successful to meet target criteria has a strong relation with independent variable cover all of the requisites of an assigned project which has correlation value of 0.954 (refer to SPSS file). Correlation analysis of employee motivation

Relating on the findings of correlation analysis between dependent variable optimum effort and the independent variable, opportunities for career development have the maximum value that amounts to be 0.955 (refer to SPSS file). Correlation analysis of work environment

Based on the calculation made in SPSS it has been analyze that correlation between dependent variable, growing market share, and independent variable, safety measures from possible risk and hazards, have the strongest relation that value to be 0.970 (refer to SPSS file). Correlation analysis of communication flexibilities

On the basis of the findings reflected in the SPSS file it has been found that the dependent variable, avails all of the resources strength has a strong relation with independent variable, hygienic work environment which has correlation value of 0.985 (refer to SPSS file). Correlation analysis of training and development

In accordance to the findings of correlation analysis between dependent variable optimum effort and the independent variable, options for emergency exit have the maximum value that amounts to be 0.976 (refer to SPSS file). Correlation analysis of online purchase intension

Based on the findings of correlation analysis between dependent variable optimum effort and the independent variable, opportunities for career development have the maximum value that amounts to be 0.955 (refer to SPSS file).

4.5.4 Multiple regression analysis Regression of successful to meet target criteria

Figure Model summary

(Source: SPSS)

Figure ANOVA

(Source: SPSS)

Based on the above figures it has been found that R square valued to be 0.984 which is more than 0.50 and Significance value to be 0.00 that is more than 0.05. Therefore, it can be said that the mode fits well with the dependent variable and the findings is significant to the topic. Regression of growing market share

Figure Model summary

(Source: SPSS)

Figure ANOVA

(Source: SPSS)

Calculating Model summary and ANOVA it has been found that R square valued to be 0.982 that is more than 0.50 and Significance level found to be 0.00 which is more than 0.05. Thus, it implies that the model fits accordingly with the dependent variable and the result is significant. Regression of experiencing high competitive advantage

Figure Model summary

(Source: SPSS)

Figure ANOVA

(Source: SPSS)

Based on the above figures relating to regression analysis it has been found thatR square valued to be 0.983 and Significance level in ANOVA is 0.00. This shows that the model fits 98% to the variable and the result I significant. Regression of avails all of the resources strength

Figure Model summary

(Source: SPSS)

Figure ANOVA

(Source: SPSS)

Based on the figures above it has been found that significant level is 0.00 and the R square valued to be 0.985. This depicts that the model fits the dependent variable well with 98% and the result is significant.

4.5.5 Descriptive analysis

Descriptive Statistics
  N Minimum Maximum Mean Std. Deviation Variance
Successful_to_meet_target_criteria 100 1.00 5.00 3.0300 1.23464 1.524
Growing_market_share 100 1.00 5.00 3.1100 1.29408 1.675
Experience_high_copetitive_advantage 100 1.00 5.00 3.0300 1.09595 1.201
Avaials_all_of_the_resources_strength 100 1.00 5.00 2.9600 1.24657 1.554
Optimum_effort 100 1.00 5.00 3.3300 1.37844 1.900
Utilize_available_resources 100 1.00 5.00 3.3100 1.49541 2.236
Cover_entire_requisites_of_a_project 100 1.00 5.00 3.0600 1.36936 1.875
Follows_continuous_learning_and_improvement_process 100 1.00 5.00 3.2700 1.43446 2.058
Hygienic_work_environment 100 1.00 5.00 2.9100 1.26407 1.598
Availability_of_all_resources 100 1.00 5.00 3.0400 1.29428 1.675
Satisfactory_remuneration_package 100 1.00 5.00 2.6000 1.30268 1.697
Opportunities_for_career_development 100 1.00 5.00 3.1700 1.21485 1.476
Resourceful_work_environment 100 1.00 5.00 2.8200 1.29006 1.664
Safety_measures_from_possible_risk_and_hazards 100 1.00 5.00 3.0000 1.26331 1.596
Gain_instant_support_of_management 100 1.00 5.00 3.2700 1.21319 1.472
Options_for_emergencey_cases 100 1.00 5.00 3.1600 1.19528 1.429
Availability_of_communication_medium 100 1.00 5.00 2.9800 1.15453 1.333
No_constraint_communicating_different_cultured_employees 100 1.00 5.00 3.0900 1.22347 1.497
Support_from_managers_during_communication_glitches 100 1.00 5.00 3.2700 1.21319 1.472
Support_for_optimum_digital_communication 100 1.00 5.00 3.2600 1.22779 1.507
Regular_training_support 100 1.00 5.00 2.9700 1.23464 1.524
Concerned_about_workplace_issues 100 1.00 5.00 3.1600 1.39059 1.934
Rationale_decision_taken_by_managers 100 1.00 5.00 3.1600 1.39059 1.934
Availability_of_improved_training_programs_resources 100 1.00 5.00 3.0400 1.29428 1.675
Valid N (listwise) 100          
Table 4.5.5: Descriptive analysis

(Source: SPSS)

The above table it has been found that most of the dependent variables have mean values that are more aligned to 3. This states that the company has been performing moderate with the help of the increasing employee performance. On the other hand, even standard deviation of the value are ascertained to be aligned towards 1 and 1.50 which states that the derivatives related to the overall findings are formative to the topic. Moreover, it has been found that the most of the independent variable have mean value which is more aligned towards 2 and 3. This implies that most of the variables have moderate effect over the performance of the company.

Chapter 5: Conclusion

5.1 Introduction

In this section of a dissertation, the discussion over the study has been done relating to the survey taken from the participants. Further, a contribution of the research has been shown related to the findings in the previous section of the research. Above this, in order to improve the employee’s performance in the hotel industry of Kuala Lumpur, recommendations have been taken into consideration. Apart from this, the limitations of the overall research study have been depicted in order to overcome them in future research.

5.2 Discussion of the study

From the survey taken from 100 hospitality industry professional, it can be understood that employees are the key factors that help in improving the performance of organizations. The hospitality industry of Kuala Lumpur runs due to the quality services and behavior of staff members working over there. Due to this reason, the hospitality industry of Kuala Lumpur has put emphasis on improving the performance of employees. In the tests, it has been found that independent variables namely communication flexible, employee’s motivation, training, and development are normal and valid. Further, the normality and validity of the variables show that organizational performance improves with the improvement of employee’s performance. Looking towards this employee’s performance found important for the growth of hospitality sector in Kuala Lumpur. However, lack of interest and dissatisfaction of employees hinders the development of hospitality industry in the country.  

On the basis of reliability and validity of the variables, it have been understood that organizational behavior gets improved at workplace with the support of employees. Furthermore, factors such as motivation, flexibility, training, and development at workplace help in enhancing the level of employee’s performance. In supplementary to this, it has been observed that working environment like work safety and hygienic accommodation place also impacts employees performance. The regular modification of rules and policies in terms of fulfilling organizational culture and meeting the basic needs of the employees such as proper wages, healthcare facilities, safety, and wellbeing helps to improve the performance of employees at workplace. With a continuation to this, it has been observed that the flexibilities in communication within the organization structure enhance employees to engage and involve them in achieving the objectives of hotel industry in the country. It has been observed that allowance of presenting the personal ideas and views for betterment of organization helps in encouraging the employees to perform better at workplace. In addition to this, it also builds self-efficacy in employees and hence they try their best to overcome the business challenges even in the globalized market. Through this, hotel industry of Kuala Lumpur can improve their growth and development in global market. 

In the above survey, the information regarding training and development have been perceived. Training and development is a crucial tool to improve a performance of employees at workplace. With the changing trends of marketing and development of advanced technologies, it is necessary to upgrade the skills and knowledge of employees accordingly. This would help in decreasing the employees’ retention in hotel industry of Kuala Lumpur.

In this research, it can be observed that independent variable included employee’s motivation, communication flexibility, training, and development are correlated with the dependent variable namely organizational performance. The reason behind is that the business runs with the presence of quality resources in an organization. Employees are also considered as significant resources that play a vital role in enhancing market growth. On the basis of this it can be stated that with the help of rewards system and appreciation forum at the workplace, employees get motivated. Hygienic workplace, safety at work enhances motivation level of working members.  However, these approaches help in improving the performance of employees in the Hotel industry of Kuala Lumpur.  

With respect to the above analysis, it has been asserted that there are different types of training including on job and off job training that helps in improve thinking level and knowledge of employees. Further, it also helps in building self-optimism and efficacy in them. This directly improve the performance of hotel industry in Kuala Lumpur and along with this, it would also build a good image in globalized market. Henceforth, looking forward to this it have been noticed that employees performance in hotels and restaurants can improve the performance of overall hospitality sector in Kuala Lumpur.          

5.3 Research Contributions

From the above findings, the importance of employee’s performance for meeting the objectives of hotels in Kuala Lumpur has been elaborated. The elaboration shows that an industry develops and increases the market share with the support of employees. The engagement and interest toward achievement of common organizational goal leads to develop the hotel industry in the county. Looking towards this, it can be asserted that this research study have tried to achieve the objectives of significance of employees performance in hotel industry of Kuala Lumpur.

In the findings, it can be observed that motivation, improve health safety, unhygienic environment and organizational cultures are the factors that have been affecting employees to give best result in Hotels of Kuala Lumpur. The reason behind this is strict policies organizational policies that self discriminate employees, inflexibility in communication that lowers the self-efficacy among employee to give their best performance. Apparently, it can be signified that the second objective of factors affecting employee’s performance in hotel industry of Kuala Lumpur has been achieved.

There are several challenges faced by hotel industry of Kuala Lumpur and these challenges include strict policies of government, organizational culture, highly competitive global market and many others. Presence of traditional infrastructures and low talented employees in hotels has impacted the image and reputation of hotel in Kuala Lumpur. Moreover, strict rules of government and companies for female’s employees have led to increase the employee retention rates in hotel industry of the country. Moreover, it has been observed that due to low market opportunities, companies have been transforming in different sector. These have widely affected the hotel industry in Malaysia. Looking towards this, it can be simplified that through research study have put emphasis on some of the challenges faced by hotel industry; yet the lack of challenges in globalized market have been observed in the study. Henceforth, it can be depicted that the objectives of analyzing the challenges faced by hotel industry of Kuala Lumpur have not been achieved in proper manner.          

5.4   Research Recommendations

Recruitment of qualified and talented workforce

From the above study, it have been observed that hospitality industry in Kuala Lumpur put emphasis on hiring less qualified workforce so that they can pay less wages. However, this highly impacts the performance in organization because employees are not capable enough to solve the risks in business and compete in the globalized market. Hence, to mitigate this problem in hospitality sector, companies should hire qualified and capable working members who can put their maximum effort and capabilities in give up to the mark output. Hotel industry might need approx RM 1200000 and 3 to 4 months to modify the procedure of recruitments and hire the fresh employees.    

Proper wages motivates employees

It has been noticed that hospitality industry avoids keeping their employees satisfied with the salaries. Due to this reason, employees have been giving resignation and searching for job in another sector. In order to mitigate this issue, government of Malaysia should take steps in providing proper wages to employees as per the Malaysian pay scale standard in every sector including hospitality. Further, salaries can be decided based on their experience and position in the company. Hence, for that reason, proper policies are needed to be implemented in hotel industry of Kuala Lumpur. However, this process might take approx 4 to 5 months to implement and moreover, hospitality industry might have to spent around 550000 in revising their pay scale terms and condition.     

Improvement in work culture

The most significant issue found in hospitality industry of Kuala Lumpur includes discrimination among employees. The women employees are bound to wear a scarf and further, male employees are ordered to work separately and maintain a distance from female employees. Thus this kind of discrimination and inequality at workplace has been hampering the growth of this sector. In that case, hospitality industry should change their policies and rules of discrimination on the ground of gender and uniform of employees at workplace. Hotel industry should develop their personal discrimination policies and educate their employees to follow the rules. For this, they might need approx 2 to 3 months and company can spend over RM 230000 amount for modification of policies.    

Development of infrastructure

Lack of infrastructures has been observed in hospitality industry of Kuala Lumpur which has been observed to be a reason of de-motivation for workforce. In that case, hotel industry should boost up their business growth through implementation of advanced infrastructure in their organizations. For example, robotic system and self-service automation has arrived in the country that lowers the hard work of employees to some extents. Hotel industry might execute these type of technologies at their workplace. Hence, this would help in motivating employees and improving their performance. The implementation of infrastructures needs huge funds and time. However, hotels can use approx RM 600000 and improve their infrastructure within 7 to 8 months.      

Implementation of Team building approach 

A problem of team building has been found in hotel industry due to which performance of employees have been hampering at some point. In that case, the company can execute team building approaches such as Goal Setting, Role Clarification, policies of respect and equality, Interpersonal-Relationship Management to mitigate the problem of conflict and miscommunication among working team members. However, for this hotels can spent approx 300000 for implementing the approach within 3 to 4 months.     

5.5 Research Limitations

While conducting the research, several issues have been faced by the researcher that somewhere hampered the efficiency of the dissertation. It has been observed that the survey have been taken and data analysis has been done through SPSS. However, this led to spend huge funds for only data analysis and research methodology. Apart from this, since, the researcher has been gathering the information of overall hospitality sector instead of a single hotel. Therefore, most of the funds have got invested in gathering the sources under literature review part. Thus, this led to lack of funds for completing the further research study in proper way.

On the other side, research study has taken huge time incompletion as the review of literature took more than 15 days as per decision. Due to this reason, the data analysis have also have taken more time to complete. Perhaps, the lack of time management has also been faced by researcher. In supplementary to this, at the time of survey, many respondents withdrew their name from the survey process. This has led to lose the reliability and efficiency of the research to some extent. Above this, there has no discussion identified regarding the findings in comparison to the secondary data with primary data. Moreover, the subject selected by the researcher needs a broader study and analysis to under the concept of effect of employee’s performance in hospitality sector in terms of growth and development. However, research has selected a small sample size due to which the results found might be not much relevant as expected by a researcher.         

5.6 Conclusion

From the above study, it can be concluded that dependent and independent variables are interrelated to a greater extent in a research study. Further, it has been found that employee performance improves with the support of factors including motivation, training and development, communication complexities. The organization performance in hospitality industry of Kuala Lumpur did not found to be excellent as the employees do not show much interest and engage themselves in achievement of group goals.

In addition to this, it has been observed that the objectives made by the researcher have been achieved to some extent in this dissertation. The objectives of establishment of relationship between performance of employees and organizational performance have not been achieved in clear format. Moreover, mitigating approaches can help the hotel industry to improve their organizational performance. In supplementary to this, recommendations including recruitment of qualified and talented workforce,development of infrastructure, and implementation of Team building approach have been provided to mitigate the challenges of hospitality industry in Kuala Lumpur.    

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