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THE INFLUENCE OF EXTRINSIC MOTIVATION AND TRAINING ON RETENTION OF HOTEL FRONT DESK EMPLOYEES CASSIE PERPETUA FORSYTHE THESIS SUBMIlTED INPARTIAL FULFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTS UNIVERSITI MALAYSIA SABAH 2014 UMS UNIVEASITJ MALAYSIA SABAH

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Page 1: DECLARATIONeprints.ums.edu.my/17904/1/The influence of extrinsic motivation.pdf · TITLE DEGREE VIVA DATE SUPERVISOR ... the urgency to get my MBA- she was a research student at UMS

THE INFLUENCE OF EXTRINSIC MOTIVATION AND

TRAINING ON RETENTION OF HOTEL

FRONT DESK EMPLOYEES

CASSIE PERPETUA FORSYTHE

THESIS SUBMIlTED INPARTIAL FULFILLMENT FOR

THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION

FACULTY OF BUSINESS, ECONOMICS AND ACCOUNTS UNIVERSITI MALAYSIA SABAH

2014

UMS UNIVEASITJ MALAYSIA SABAH

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DECLARATION

Materials in this study are content based on past research extracted from

academic journals, topiC reviews and books which have been duly

acknowledged. All tests which have been run to generate the analysis of the

study has been conducted independently.

18 AUGUST 2014

x UMS UNIVEASITJ MALAYSIA SABAH

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NAME

MATRIC NO. :

TITLE

DEGREE

VIVA DATE

SUPERVISOR

CERTIFICATION

CASSIE PERPETUA FO RSYTHE

PE20117012C

THE INFLUENCE OF EXTRINSIC MOTIVATION

AND TRAINING ON RETENTION OF HOTEL

FRONT DESK EMPOYEES

MASTERS OF BUSINESS ADMINISTRATION

28 AUGUST 2014

DECLARED BY

Dr Balvinder Kaur Kler

x

UMS UNIVERSITI MALAYSIA SABAH

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ACKNOWLEDGEMENT

I am grateful for the opportunity to be able to present a study which I have

been interested in. The MBA journey has indeed been a very challenging

experience and a relatively eye opening one as well. However, I am glad I

chose this path. It was my best friend Jessy Ann James Logijin that sparked

the urgency to get my MBA- she was a research student at UMS but it was

just not her luck to be able to complete it with UMS. I wish her much better

luck in the next try and hope that there will also be more dedication from the

school and supervisor.

That being said, a big note of thanks to my supervisors Dr Balvinder Kaur Kler

and Dr Jude Sondoh for their guidance while preparing this paper. They are

among the academicians who really do seem to understand and empathize

the challenges of a working student.

My family, colleagues and friends who have been motivating; espeCially to

note a dear senior classmate, Azwin Zawawi for taking time to assist in

portions of this paper that I was not clear on. My husband is certainly glad

that he now has a full-fledged working wife who can start mastering cooking

instead. My mum who was always watching out for my eating welfare and

dad who never discouraged me throughout the tenure.

x

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ABSTRACT

THE INFLUENCE OF EXTRINSIC MOTIVATION AND TRAINING ON

RETENTION OF HOTEL FRONT DESK EMPOYEES

This study initially intended to examine if variables of extrinsic motivation,

intrinsic motivation and training could influence retention of hotel employees,

with a focus on front desk employees. Front desk employees of hotels in

Sabah, were administered a combined survey of Blais, Briere, Lachance,

Riddle, and Vallerand's (1993) 16-item questionnaire to measure extrinsic and

intrinsic motivation, a S-item questionnaire by Mayasari (2002) to measure

training and a 5-item questionnaire by Camman, Fichman, Jenkins and Klesh

(1979) to measure employee retention. Only employees of 3 star hotels and

above, of any type (city hotel, jungle resort, mangrove resort, island resort)

were included in the sample. Data was then be analyzed by conducting a

factor analysis and mul tiple regression. Intrinsic motivation was dropped

while conducting the analysis as no data could be tabulated by SPSS. Hence

proceeding with just two independent variables, of extrinsic motivation and

training, and retaining the dependent variable as employee retention. This

study thus tested two hypotheses: (i) There is a positive relationship between

extrinsic motivation and employee retention of front desk employees, (ii) that

training has a positive effect on front desk employees retention of front desk

employees.

x UMS UNIVEASITI MALAYSIA SA BAH

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ABSTRAK

Kajian ini pada awalnya bertujuan untuk mengkaji jika pembolehubah

motivasi ekstrinsik, motivasi intrinsik dan latihan boleh mempengaruhi

pengekalan pekerja hote~ dengan memberi tumpuan kepada pekerja meja

depan. Kakitangan meja depan hotel di Sabah, telah dikemukakan soall

selidik gabungan 16-soalan daripada Blais, Briere, Lachance, teka-teki, dan

Vallerand (1993) untuk mengukur ekstrinsik dan motivasi intrinsik, soal

selidik 5 -soalan daripada Mayasari (2002) untuk mengukur latihan dan soa/

selidik 5-soa/an daripada Camman, Fichman, Jenkins dan Klesh (1979 )

untuk mengukur pengeka/an pekerja. Hanya pekerja dari 3 bintang dan ke

atas, dari pelbagai jenis ( hotel bandar, resort hutan , resort bakau, pulau

peranginan) dimasukkan di dalam sampel Data kemudiannya diana/isis

dengan melakukan analisis faktor dan regresi. Motivasi intrinsik digugurkan

semasa menjalankan analisis kerana tidak ada data boleh dijadualkan melalui

SPSs. Oleh itu kajian ini diteruskan dengan hanya dua pembo/ehubah bebas,

motivasi ekstrinsik dan /atihan, dan mempertahankan pembolehubah

bersandar pengekalan kakitangan. Kajian ini sehingga menguji dua hipotesis:

( i) Terdapat hubungan yang positif antara motivasi ekstrinsik dan

pengekalan pekerja kakitangan meja depan, (ii) latihan yang mempunyai

kesan positif ke atas depan pengekalan pekerja meja pekerja meja depan.

x

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TABLE OF CONTENTS

TITLE

DECLARATION

CERTIFICATION

ACKNOWLEDGMENT

ABSTRACT

ABSTRAK

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1: INTRODUCTION

1.1 Overview

1.2 Problem Statement

1.3 Research Questions

1.4 Research Objectives

1.5 Significance of Study

1.6 Operational Definition of Key Variables

1.7 Organization of Chapters

1.8 Summary

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

2.2 Related Theories

2.3 Extrinsic and Intrinsic Motivation

2.4 Training

2.5 Employee

2.6 Summary

CHAPTER 3: METHODOLOGY

3.1 Introduction

3.2 Theoretical Framework

3.3 Hypotheses

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3.4 Target Population and Sampling Frame

3.5 Sample Size

3.6 Instruments of Development

3.7 Measurement of Extrinsic Motivation

3.8 Measurement of Intrinsic Motivation

3.9 Measurement for Impact of Training

3.10 Measurement for Employee Retention

3.11 Data Analysis

CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Introduction

4.2 Data Collection and Response Rate

4.3 Profile of Respondents

4.4 Factor Analysis

4.4.1 Factor Analysis of Extrinsic Motivation

4.4.2 Factor Analysis of Intrinsic Motivation

4.4.3 Factor Analysis of Training

4.4.4 Factor Analysis of Employee Retention

4.5 Reliability Analysis

4.6 Descriptive Analysis

4.7 Correlation Analysis

4.8 Multiple Regressio n Analysis

4.9 Modification of Research Framework

CHAPTER 5: DISCUSSION AND CONCLUSION

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5.1 Introduction 34

5.2 Recapitulation of Study Findings 35

5.3 Discussions of Research Findings 35

5.3.1 The Relationship Between Extrinsic Motivation and 36

Employee Retention

5.3.2 The Relationship Between Intrinsic Motivation and 36

Employee Retention

5.3.3 The Relationship Between Training and Employee

Retention

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5.4 Contributions of Research 37

5.5 Limitations of Study 38

5.6 Conclusion 38

REFERENCE 40

APPENDICES

Research Questionnaire 44

Ai Respondents Profile 48

A2 Factor Analysis 50

A3 Reliability Test 65

A4 Oescriptives 67

AS Correlations 68

A6 Multiple Regression 69

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UST OF TABLES

Table 4.1 Profile of Respondents 24

Table 4.2 Factor Analysis of Extrinsic Motivation 26

Table 4.3 Factor Analysis of Training 28

Table 4.4 Factor Analysis of Retention 29

Table 4.5 Reliability Tests 29

Table 4.6 Mean and Standard Deviation for Variables in the Study 30

Table 4.7 Correlations 31

Table 4.8 Regression Analysis of Extrinsic Motivation With Training 31

Table 4.9 Regression Analysis of Extrinsic Motivation With Retention 31

Table 4.10 Regression Analysis of Training With Retention 32

Table 4.11 Results of Hypotheses 32

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Figure 3.1

Figure 4.1

UST OF FIGURES

Theoretical Framework

Modified Theoretical Framework

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CHAPTER 1

INTRODUCTION

1.1 Overview

The service industry is one of the oldest industries which developed as a result of

people's desire to travel. Today I international tourists are more aware and

experienced and have certain expectations regarding services they receive while

traveling, especially since they are able to compare the level of service quality

across countries. With this growth in leisure habits, the service industry has

become the largest industry, and its main dependent is human resource, however,

the hospitality industry is one of the service industries where human resource is

considered to be most inSignificant (Sharon and Goziker, 2011).

According to Pollitt (2008), within the next three to five years, the

InterContinental Hotels in China alone will see a growth from 26,000 to 60,000 staff

to service the upcoming 107 hotels. However, China faces a problem with

hospitality graduates who do not proceed to work in the hotel line. Also, employees

from different tertiary backgrounds or work experiences hardly consider moving

into the hotel line. The InterContinental Hotels has since launched in 2006,

partnerships with local academic institutes to offer practical training. Beyond the

emphasis of training, they encourage staff contributions to allow staff to feel

appreciated. Ideally they hope to shape staff that will be loyal towards the

company.

Hotels frequently struggle with low retention of employees, especially those

in the service departments: front desk, food and beverage and housekeeping. This

may be highly due to the intensity of labour, low job security, low pay, and limited

opportunities for advancement (Byrne, 1986). Several studies have identified

factors that may motivate hotel employees (Johnson, 1986; Wong, Siu and Tsang,

1999).

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Hotel employees are assumed to have intelligence, vast job knowledge,

skills, ability to manage time, present themselves as matured personnel and

independent workers. Hence why motivating this group of employees is necessary

in order to maintain low turnover and a more stable front desk structure which will

then lead to a better hotel environment for guests (Wong, Siu, and Tsang, 1999).

Sharon and Goziker (2011) have also indicated the front desk serves as one

of the most important contact points for guests. In many cases the front desk

(reception) is the first place of contact between the guest and the hotel and, as it is

often said that one would not get a second chance to make a good first impression.

Customers evaluate their visit experience based on both tangible and intangible

products. Tangible products refer to the room conditions, amenities and aesthetics

of the hotel and intangible products refers to the services rendered by the hotel

staff. The service experience is created at the meeting point of the employee and

the customer. At that very moment, the qualifications and attitudes of an employee

may turn the service into a good or a bad experience which could potentially affect

the perception of the guest towards the hotel and the guests' future visits.

Therefore, employees at the front desk play a significant role in building and

maintaining the hotel's image and reputation.

Baum and Kong's (2006) study further presses that the people element is

~ne of the most important resources for businesses globa"y and is particularly true

in respect of service-intensive sectors such as hospitality. The functional area of the

front desk, with its roles of reception and marketing as we" as acting as the centre

for communications, assumes the role of the "brain" in the hotel. Indirectly,

employees working in the front desk undertake an important task in building up a

hotel's image and reputation. Therefore, skills and quality of staff are among the

most important factors in underpinning the competitive success of the hotel.

Motivation in itself is a complex subject which can come in many forms;

money, relationship, career goals to name a few. in the hotel industry, monetary

bonuses or benefits, promotion prospects, feeling of accomplishment, job security

and good working conditions have been highlighted as important motivational

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factors (Wong, Siu, & Tsang, 1999). Hence, a pertinent question that is frequently

asked among human resource management is "what makes hotel employees

motivated and satisfied with their job? "How can we retain them?" (Chiang & Jang,

2008).

1.2 Problem Statement

The hospitality industry is regarded as an industry that requires low-level skills and

very little training. Boxall and Purcell (in Sharon and Goziker, 2011) coin this as a

dispute between best practices versus best fits. Literature regarding skills and

performance in the hospitality industry concludes that it is timely to acknowledge

that the hospitality industry is more complex (Sharon and Goziker, 2011). Both the

hotel industry and academics need to recognize the importance of motivating

employees and a few studies have concentrated on identifying factors that could

motivate employees and suggests implications for further improving employee

motivation (Chiang and Jang, 2008).

The study of compensation and reward is also limited in hospitality

research. Although hotels increasingly expect their employees to demonstrate

excellent service behaviors, what they value most may not always coincide with

what employee's value. This is a similar scenario found in Chiang and Birtch' (2010)

study of pay performance and work attitudes. Alike Baum and Kong (2006), they

also state that there is a difference between how employees and employers

perceive excellence in service and how much effort is to be exerted in order to offer

great services versus the reward received.

There also exists a general perception that working within the hospitality

and tourism industries is only limited opportunity for promotion and remuneration.

Hence this may cause an employee to engage in their duties with minimum effort,

such as fulfilling their technical duties such as the check-in and check-out

procedures. This is problematiC since tourists perceive quality is closely related to

employee performance. It is acknowledged that an essential feature of any

successful organization comprises of motivated employees. The extent to which an

3

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employer is able to motivate employees is important for the overall success of the

organization. Motivation is not merely a human resource responsibility but involves

supervisors and managers may, by influencing the context, affect the degree of

work motivation among the employees (Lundberg, Gudmundson, and Andersson,

2009).

1.3 Research Questions

The following research question s were explored in this study:

i. Are front desk employees more motivated to stay in a company based on intrinsic motivation factors?

ii. Are front desk employees more motivated to stay in a company based on extrinsic motivation factors?

iii. Does training have an influence on retention of employees?

1.4 Research Objectives

The specific objectives of this study are as follows:

i. To determine the relationship between intrinsic motivation and employee retention among front desk employees.

ii. To determine the relationship between extrinsic motivation and employee retention among front desk employees.

iii. To study whether training has an influence on retention of employees.

1.5 Significance of Study

Stringer, Didham, and Theivananthampillai (2011) in their study of motivation, pay

satisfaction, and job satisfaction of front-line employees pointed out that there is a

positive relationship between remuneration issues and performance. However, 4

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there is little direction given of what companies should do when certain incentive

designs are in place and also on how to manage the incentive without money

becoming the sole source of motivation. The need for more theoretical

development is important because the use of pay-for-performance plans is

becoming more widely adopted, and there is a trend to increasing variable pay as a

percentage of total remuneration. The cognitive evaluation theory on the other

hand poses a challenge to the view that pay increases motivation has a negative

effect on intrinsic motivation.

According to Furnham, Eracleous, and Chamorro-Premuzic (2009) one focus

in the field of psychology is to study the reasons why individuals vary in their

motivation to work, as well as how individuals interact with organizational and

situational factors that influence individual motivation. TheoriSts have offered many

explanations for the sources of both work motivation and job satisfaction and in

their opinion beyond the many theories presented, personality plays a significant

role one's motivation level.

This study intends to examine the influence of intrinsic and extrinsic

motivation and training on employee retention among front desk employees based

of hotels in Sabah. The conclusions of the study aims to learn whether the

suggested theories could be implemented in that specific work environment to

enhance the working morale and conditions of front officers who are constantly

deemed as "low skilled workers that are required to excel in a complex work

system".

1.6 Operational Definition Key Variables

Front Desk: The functional area of front office, with its roles of reception and

marketing as well as acting as the center for liaison and communication within the

operating business, plays the role of the "brain" in the hotel (Baum & Kong, 2006).

Extrinsic Motivation: Extrinsically motivated individuals are motived when they

are rewarded for the work they accomplish and work towards gaining more

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rewards in equation to their contribution (Amabile, 1993).

Intrinsic Motivation: Intrinsically motivated individuals seek enjoyment, interest,

satisfaction of curiosity, self-expression, or personal goals in work (Amabile, 1993).

Training: An education, instruction or discipline in which one is being trained on.

(Mayasari, 2002).

Employee Retention: The rotation of workers throughout the labor market,

organizations, positions and profession and between being employed and

unemployed (Ongari, 2007).

1.7 Organization of Chapters

Chapter 2 will provide a comprehensive literature review of extrinsic and intrinsic

motivation as well as how training affects employees. The research methodology

will be stated in Chapter 3, introducing the theoretical framework, hypotheses,

samples and the instrument as well as the measurement of the variables related to

this study. Data analysis and the research results of the findings will be explained in

Chapter 4 with the aid of simplified tables. In the final Chapter, the discussion will

provide recommendations for future replications of this studies and contributing

factors to why the hypotheses mayor may not be supported. Limitations will also

be presented.

1.8 Executive Sum mary

The hotel industry is rapidly growing and indirectly provides a platform for

employment opportunities. However, hotels are facing a big challenge with low

retention of staff which is deemed to be highly related to the complexity of the

work which is not compensated accordingly. Furthermore, expectations of travelers

have grown leaps and bounds forcing employees to be equipped to serve the

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multitude of guests that they may encounter. However, hotels are not placing much

importance on training of staff to improve their skills to be of better services.

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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction

Chapter two explores the corresponding motivational theories that supports and

diverges from intrinsic and extrinsic motivation as well as literature on training

effects on retention.

2.2 Related Theories

Motivation is the psychological process that causes the arousal, direction, and

persistence in voluntary actions that are goal oriented (Mitchel, 1981). Motivation is

defined by Robbins (1993) as the willingness to exert high levels of effort toward

organizational goals, to satisfy individual needs. Ramlall (2004) selected the need

theory, equity theory, expectancy theory, and the job design model as the most

relevant theories for motivating employees in an organization, basing his discussion

on five methods of explaining behavior, needs, reinforcement, cognition, job

characteristics, and feelings or emotions, which underlie the evaluation human

motivation theories (Kretiner and Kinicki, 1998). The following are corresponding

theories to this study:

2.2.1 Maslow's need hierarchy theory

Maslow believed that there are at least five sets of goals, which can be referred to

as basic needs. These are physical needs, safety needs, the need for love, the need

for esteem, and the need for self-actualization. Motivation is linked to this hierarchy

of needs because unmet needs act as motivators. He states that people are

motivated by the desire to achieve or maintain the various conditions upon which

these basic needs rest and by certain more intellectual desires (Maslow, 1943).

2.2.3 McClelland's Need Theory

McClelland (1961) describes the theory of needs by focusing on three needs which

are achievement, power, and affiliation. The need for achievement was defined as

the drive to excel, to achieve in relation to a set of standards, to strive to succeed.

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The need for power was defined as the need to make others behave in a way that

they would not have behaved otherwise. The need for affiliation was defined as the

desire for friendly and close interpersonal relatio nships.

2.2.4 Equity theory

Equity theory recognizes that individuals are concerned not only with the absolute

amount of rewards they receive for their efforts, but also with the relationship of

that amount to what others receive. Based on one's inputs, such as effort,

experience, education, and competencies, one can compare outcomes such as

salary levels, salary increases, recognition, and other rewards. When people

perceive an imbalance in their outcome-input ratio relative to others, tension is

created. The tension provides the basis for motivation, as people strive for what

they perceive to be equitable and fair (Pritchard, 1969).

2.2.5 The motivator-hygiene theory

Herzberg (1959) discovered that employees described satisfaction in terms of

intrinsic content of a job. These factors termed motivators included variables such

as achievement, recognition, the work itself, responsibility, advancement, and

growth. Conversely, dissatisfying experiences, termed hygiene factors derived from

extrinsic, non-job related factors, such as company policies, salary, co-worker

relations, and supervisory styles. Herzberg (1959) argues that eliminating the

causes of dissatisfaction would not result in a state of satisfaction. Instead, it would

result in a neutral state. Satisfaction and motivation would occur only as a result of

the use of motivators.

2.3 Extrinsic and intrinsic motivation

According to Amabile (1993), human motivation towards work can be categorized

into two types which are intrinsic motivation; a motivation that arises from the core

values of the work for the individual such as its interest value and extrinsic

motivation which arises from the desire to obtain some outcomes such as rewards

that are apart from the work itself. Further reiterating, Amabile (1993) states that

high levels of intrinsic motivation are projected through strong interest and

involvement in work to perfect their assignment. Extrinsic motivation on the other

hand, arises when individuals feel driven by something outside of the work itself

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such as promised and expected rewards. Intrinsic motivators are a natural part of a

person's engagement in a task, it arises from their feelings. Extrinsic motivators are

considered a contingent on the work. They are promised rewards for completed

tasks under certain conditions.

Bainbridge (2010) asserts that intrinsic motivation refers to motivation that

originates from within a person rather than from external merits such as

remuneration. It results from the comfort an individual attains from the work itself

or from the satisfaction deemed in accomplishing or even being engaged with a

task. For example, an intrinsically motivated individual will pursue a resolution to a

problem because it is challenging and gives a sense of contentment. Intrinsic

motivation does not mean that an individual will not pursue merits.

Oyedele (2010) advocates that unmotivated employees probably exhaust

less diligence in the ir jobs, abstain from the organization a s much as possible, leave

the organization if they are presented the opportunity and yield inferior excellent

work. Contrary to that, individuals who are perceived as motivated with regards to

their work are likely to be determined, inspired and gratifying, producing formidable

quality work that they absolutely devote themselves to.

Herzberg (1959) on the other hand suggests that motivated individuals are

roused by inner values in relation to other values to the working environment.

Evidently, motivation is aroused internally by factors native to the work that

Herzberg refera to as motivators. The factors which intrinsically motivate individuals

comprise the work itself, advancement, achievement, responsibility, recognition,

and growth. Motivation would thus only be in effect if an outcome to these intrinsic

variables being utilized. Herzberg (1959) presents intrinsic motivational factors

which have a big influence on individuals which are: job security, freedom for

innovative thinking, training and development, challenging or interesting work, and

a sense of belonging to the organization.

In terms of the job characteristic's theory, people tend to exert higher

motivation when their jobs involves a range of skills essential to complete the job,

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have an effect on others including other co-workers, customers, or the organization

as a whole (Hackman and Oldham, 1980). Despite the fact that such circumstances

are thought to advance employee motivation, it is conceivable that they will also aid

involvement at the employee altitude, ultimately decrease individuals intent to

leave an organization (Lyons, 2010).

Sunderji (2004) suggests that main intrinsic motivators are the work itself,

achievement, and recognition for achievement. Therefore leaders have a mandate

to use their influence over an individual's job structure and content, supervisory

practices sense of achievement, recognition for those achievements, and

relationshi ps with employees. Management should not only rely on extrinsic

variables to impact employee retention but ideally a combination of both intrinsic

and extrinsic factors should be deliberated as an effective retention strategy

(Samuel and Chipunza, 2009).

Although theorists from Herzberg's Two-Factor Theory to Hackman and

Oldham's Job Characte ristics Model and Deci and Ryan's Self-Determination Theory

have categorize motivation into two categories which ultimately can be categorized

as intrinsic and extrinsic, they differ in conceptualizations of whether and how the

types of motivation combine. Herzberg in Maslow (1943) views intrinsic and

extrinsic motivation as combini n9 additively. He concurs that once extrinsic

motivation is fulfilled, intrinsic motivation will follow suit. Hackman and Oldham

also in Maslow (1943) suggests that extrinsic motivation adds to what they coin as

internal motivation which is the satisfaction of successfully completing a task. Oeci

on the other hand, opposes that intrinsic and extrinsic motivation are good

combinations. He states that extrinsic motivation has to be accomplished first for

intrinsic motivation to occur.

2.4 Training

The requirement for a tourism destination to deliver high-quality services and

products, coupled with the labor, intensive nature of the industry, results in a need

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for the tourism sector to recruit and retain well-educated and well-trained

professionals (Kyriakidou and Maroudas, 2010).

Khanfar (2011) also supports that training has become an investment in

human beings since it is considered the main pathway to form adequate human

resources in terms of quality and quantity. It aims at providing individuals with

information and administrative, technical skills required to carry out their work in

efficiency and effectiveness. Training has to continue in all stages of work and this

is what is called continual hotel education. Training process works on improving the

services quality in hote I. It is necessary to adopt the system of training quality.

The tourism industry in particular, has a reputation as being a poor trainer

(Jameson, 2000) and much of the training that does take place is driven by

legislative requirements (Keep and Mayhew, 1999). Survey findings vary regarding

the actual provision of training in the industry with Thomas et al. (2000) reports

that just under 50% of the small firms surveyed were engaged in training, while

the Hospitality Training Foundation (1999) revealed that 85% of hospitality

employers surveyed provided some training for some employees. This general lack

of training initiatives may be due to a number of reasons. For them, training costs

may be greater in small firms than in larger firms where economies of scale

distribute the fixed costs of training over a larger group of employees (Lynch and

Black, 1998), and there are dedicated human resource staffs. Second, internal labor

markets in large firms facilitate employee retention and increase the chance of

return on training investments (Green, 1993). Third, small firms may be acting

rationally in the absence of conVincing research demonstrating that greater training

activity generates improved business performance (Storey and Westhead, 1997).

Folguera and Trullen (2000) found that learning-oriented European SMEs were

those that created facilities for employee learning and stimulated employees not

only to attain new knowledge and skillS, but also to acquire skills in the field of

learning and problem solving, and thus develop their capacity for future learning.

Mayasari (2002) states that when front desk employees perform services

badly, there is a warning Signal that there must be a problem. Morever, front desk

workers have to face the reality that service quality depends on the differences

among customers' compelled to pay attention to front desk workers in order to be

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able to anticipate the diverse and complex customers' request. There is indication

that front desk workers will treat customers similarly to the way in which they are

treated by management (Berkley and Gupta, 1995). Front desk employees are

supposed to show their best performance for customers and require feeling they

have been met before they can do likewise others. It is stressed that human

resource management be given to a greater attention to manage human resource

activities such as training, career development opportunities, job securities,

performance appraisals, performance feedback and compensation in order to

support the service company performance.

Further reiterating, Berkley and Gupta (1995), mention that knowledge and

skills are critical. Service providers must possess the required skills and knowledge

to perform services. Greater knowledge allows customer service front liners help

their customers and make them capable of important judgments on matters. A

customer service encounter can be very frustrating, when the employee does not

have the adequate answers.

Research contends that the only strategy for organization to advance

manpower productivity drastically and boost retention is to request the optimization

of their manpower through ample training and development programs. Wan (2007)

posits that to attain such a task, organization need to devote enormous resources

in order to ensure that workers have the skills, competencies and information

necessary to work successfully in a hastily changing and complex work

environment. Researchers thus advocate that it is essential for companies to invest

on human resource development, which ultimately forms part of the course of

assisting employees improve their knowledge, tasks, experiences, and add value to

their lives. It must be emphasized that the key technique of achieving this is

through education, training, and development. Samuel (2008) defines training as a

designed process to alter skills behavior, knowledge, and attitudes through learning

experience to reach effective performance in an activity or array of tasks.

The reason behind employing training is to expand the abilities of

employees and to try to fulfill the current and future workforces the organization

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