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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
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
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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
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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.
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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.
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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.
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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).
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
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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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