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Roosevelt University

EMPLOYEE ENGAGEMENT AND EMPOWERMENT IN THE HOSPITALITY INDUSTRY

Vanessa Berrettini

Submitted to:

Dr. BoberManfred Steinfeld School of Hospitality and Tourism Management (MSHTM)

August, 2014

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ABSTRACT

Considerable research has been conducted examining the impact of employee

engagement and empowerment on job performance, employee retention, and job satisfaction.

Many of these studies reveal that engaged and empowered employees make a greater personal

investment in their jobs and often take more pride in corporate success, but this research is not

definitive. Additional study is needed that includes industries whose employees are temporary or

seasonal. In the hospitality industry, for example, the semi-permanent and seasonal nature of

many business models causes employers to accept frequent employee turnover as part of an

inherent human resource challenge. The primary purpose of this study was to conduct a review

of qualitative research to determine if programs that foster employee engagement and

empowerment can create greater productivity and improve employee morale in the hospitality

industry.

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TABLE OF CONTENTSAbstract 2

Chapter 1: Overview of the Study 5

Research Questions 6

Statement of the Problem and Importance of the Study 7

Definitions of Terms and Abbreviations 8

Summary 10

Chapter 2: Literature Review 12

Introduction 12

Employee Engagement 13

The Relationship of Employee to Organization 15

The Vital Role of Two-way Organizational Communication 16

The Positive Effects of Socialization 17

Employee Empowerment 18

Key Motivators in Retention 19

Advantages of Disinterested Support 20

Summary 22

Chapter 3: Methodology 23

Quantitative Research 23

Qualitative Research 24

Literature Analysis 26

Research Design 27

Chapter 4: Discussion, Conclusion, and Recommendations 28

Discussion 28

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Conclusion 37

Recommendations for Further Research 39

References 40

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CHAPTER1: OVERVIEW OF THE STUDY

Introduction

One of the greatest human resources challenges hospitality organizations face today is the

need to recruit, train, sustain, and retain quality employees. Each of these elements is equally

important and they often influence one another: a new recruit’s potential cannot be tapped

without training: employees will stagnate unless sustained; and, without retention, top-quality

employees will be attracted to other jobs and the organization will have to repeatedly recruit and

train new employees. If this failure to retain employees continues, it seems that the organization

will suffer from low morale, a poor reputation among employees and the public, and lower

profitability because too many resources are diverted into the endless recruiting process. The

recruiting process itself will become more challenging if an organization gains a negative

reputation for hiring, training, sustaining, and retaining excellent employees. It appears that,

when employees contribute to the all-important culture of an organization, as occurs throughout

the hospitality industry, the importance of creating and retaining capable and positive employees

is paramount.

In the past, employment management models have advocated a top-down approach that

limits employee input and minimizes two-way communication between employers and

employees. Management goals are dictated to employees and employees are evaluated on their

failure or success in meeting those goals. More recent research suggests that the carrot-and-stick

is capable of generating satisfactory initial results, but limits the potential for later growth

because the employees are supposed to have no greater value than job competency. Berman and

Rosenberg (2011) interviewed Panda Express founder and co-CEO Andrew Cherng and report

that helping employees “change the way they see things” was the “most important part of his

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job” (p. 1). Cherng’s “Panda Way” is built upon four cornerstones: “exercise for a healthy

lifestyle, continuous learning, developing others and acknowledging others” (Berman and

Rosenberg, 2011, p. 1). Ghosh (2013) points out that an organization’s resources are both rare

and almost inimitable; they should be fully utilized for the benefit of the organization. Research

departments have the potential to increase in value as their training and experiences yield skills

and expertise. As skills and expertise increase, so does their potential to create a positive impact

on the organization.

The organization, therefore, has a greater opportunity to utilize employees than the

carrot-and-stick management model permits. Cardus (2013) found that effective goal-setting

communication between employers and employees had a positive effect on generating positive

relationships, increasing employee self-sufficiency, and laying the groundwork for increased

employee autonomy. Investing in employees should not be limited to wages alone. Manchester

(2012) found that innovative benefits like tuition reimbursement gave employees a greater sense

of employer investment. Increased engagement and encouragement of employees to participate

in organizational goal-setting led to improved employee morale and productivity. Banther (2014)

cited a Gallup Organization study that showed that “2/3 of 7,939 business units” studied reported

that employee engagement caused an increase in employee production (p. 36). These

encouraging results suggest that additional efforts to engage and empower the workforce in the

hospitality industry are needed.

Research Questions

1. How does hospitality leadership develop positive relationships with employees and

promote effective employee performance and a positive hospitality-oriented culture?

2. What are causes and effects of engagement among the Hospitality organization’s

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employees?

3. What leadership styles increase employee engagement?

Statement of the Problem and Importance of the Study

The hospitality industry is one of the most dynamic and competitive industries in the

service sector, simultaneously offering opportunities for growth and potential for failure. A

major factor in determining success or failure lies in customer satisfaction; ratings and reviews

create favorable or unfavorable public opinion that can have a significant impact on profitability

and organizational success.

The traditional top-down management model has created both opportunities and

drawbacks for the hospitality industry. On one hand, the seasonal nature of many venues results

in very high turnover and few opportunities for advancement, sustainment, or retention. Top-

down managers retain control of the organization, dictate employee tasks, and expect employees

to act as cogs in the organizational structure. Unfortunately, patrons often interact with

employees more than they interact with management, so employees at every level become the

‘face’ of the organization. The potential exists for the lowest-level functionary to interact with

the most esteemed client; therefore, that employee must be a reliable and positive representative

of the organization.

If employees could be empowered, motivated, and fully engaged, it follows that their

investment in the organization would increase and their ability to positively influence its mission

would increase, as well. Gazzoli, Hancer, and Park (2010) state that the hospitality industry relies

on customer orientation more than other industries because of the “variability, inseparability, and

intangibility of the service environment” (p. 2). In addition to the immediate positive effects

employees can make on their organization’s mission, there are two additional advantages to a

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positive workforce. The first is the positive contribution employees can make to the overall

morale and culture of an organization; the second is the enhanced value experienced employees

can have on developing the workforce. If an organization can retain engaged workers, the

empowered workers will contribute to the training and sustaining of their co-workers; future

leaders can be developed from within the organization to further enhance the value of the

organization. This process has the added advantage of reducing turnover, improving retention,

and enhancing morale. Currently, there is a gap in the literature on the subject of Hospitality

organizations’ efforts to engage workers; this study seeks to address that gap and discover how

programs and initiatives in other industries can be applied to Hospitality organizations.

Definitions of Terms and Abbreviations

For clarification the following terms and definitions have been provided that frequently appear in

this writing. These have been determined with their meaning and relevance to this subject and

research.

Autonomy is self-directed behavior that allows employees to make conscious choices toward

objectives (Cardus 2013).

Cognitive action refers to action that is the result of mental reasoning, thought, or remembering

(Altinay 2008).

Commitment is the degree to which employees identify with and are invested in their work

(Gazzoli, Hancer, and Park 2010).

Compensation refers to wages, benefits, and all other incentives given to employees by an

organization. (Manchester 2012)

Customer Orientation (CO) is the focus employees have on customer satisfaction (Gazzoli,

Hancer, and Park 2010).

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Efficacy is defined as the ability to create, deliver, or produce a desired result or effect.

Employee efficacy is a primary management goal.

Empowerment is a two-way process that shifts responsibility and authority from managers to

subordinates in the organization’s hierarchy. Over time, an employee gains expertise, creativity,

and capability. If management allows the employee to take charge of his work with greater

autonomy, he will exert his full potential and excel at that work (Ghosh 2013).

Engagement refers to employees’ attitudinal, behavior, and performance commitment to their

jobs and their identification with the organization they work for (Alfes, Truss, Soane, Rees, and

Gatenby 2013).

Goals are objectives set in a proper context with both quality and quantity requirements; they

must be both achievable and measurable (Cardus 2013)

Induction refers to the worker’s entry into an organization. It generally involves formal and

informal training, employee orientation, meeting colleagues, managers, and subordinates, and the

establishments of duties and expectations (Kumar and Ravindranath 2012).

Motivation is the positive attitude that inspires an employee to perform his duties (Manchester

2012).

Objective metrics are mutually agreed-upon measurements set up between employers and

employees to establish standards of performance rewards and penalties (Cardus 2013).

Organizational culture is defined as the environmental atmosphere of a workplace. It is

composed of different elements (employee duties, co-workers’ attitudes, managerial

relationships, rewards, and the general human interactions) in the workers’ environment (Lewis,

Thomas, and Bradley 2012).

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Resources are defined as anything that is rare or almost inimitable that can create value when

utilized by an organization (Ghosh 2013).

Retention is an employee’s desire to remain employed, caused by personal satisfaction (James

and Mathew 2012).

Socialization refers to the impact an organization has on its employees and the degree to which

individuals affect that organization’s culture. Socialization connects the employee with the role

he plays in the workplace, the impact employees have on one another, and the effect

management has on the workforce (Lewis, Thomas, and Bradley 2012).

Sustainment is the positive effect a job has on an employee. Sustainment refers to a lasting

feeling of satisfaction, created through rewards, relationships, of self-worth gained in the

workplace (Lewis, Thomas, and Bradley 2012).

Termination is an employer’s action to discontinue an employee’s relationship with the

organization.

Turnover is the rate of entry and exit that an organization experiences when employees leave

employment as a result of personal dissatisfaction or termination (James and Mathew 2012).

Summary

The hospitality industry depends of employees to perform their duties in a positive and

effective manner in order to create a customer-oriented environment. Management relies on

employees to have a positive impact on the guests’ experience. Therefore, programs that increase

employee job satisfaction, build morale, and increase retention will have a lasting impact on

organizational success. By identifying criteria used to measure the relationship between

manager, employee, and the Hospitality organization’s culture, examining the causes and effects

of employee engagement within the Hospitality organization, and determining what leadership

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styles increase employee engagement, it will be possible to define transformational leadership

methods that empower employees, improve morale and retention, and increase employee

effectiveness.

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CHAPTER TWO: LITERATURE REVIEW

Introduction

The body of literature addressing employees in the workforce encompasses a broad

spectrum of issues. Recent studies have criticized the traditional “top-down” carrot-and-stick

managerial approach and offered alternative approaches to employee management that focus on

the important of individual motivation, morale, and retention as key components to

organizational success. Alfes, Truss, Soane, Rees, and Gatenby (2013), Cardus (2013), Lewis,

Thomas, and Bradley (2012), Lorinkova, Pearsall, and Sims (2013), Gazzoli, Hancer, and Park

(2012), Kumar and Ravindranath (2012), Ghosh (2013), Manchester (2012), James and Matthew

(2012), Kelleher (2010), and Mignonac and Richebe (2013) addressed the concept of employee

engagement and its relationship to employee retention, empowerment, and performance

enhancement.

Much has been written on the importance of accurately measuring the relationship

between a manager, employee, and the importance of effectively socializing employees to their

workplace’s cultural environment. Cardus (2013) proposed five “levers” of employee

engagement: a competent manager who sets broad goals established within the proper context,

objective metrics of progress and regress, provides sufficient resources, and permits autonomy to

accomplish assigned tasks can effectively motivate engagement in an employee. Training and

guidance of new and veteran employees will not only help them judge and reason efficiently, but

all promote an employee-friendly environment that promotes retention. Increasing employee job

satisfaction not only increases productivity; it reduces absenteeism and high turnover rates. This

literature review will examine employee engagement, the relationship of employee to

organization, the vital role of two-way organizational communication, the positive effects of

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socialization, employee empowerment, key motivators in retention, and the negative

consequences of disinterested organizations.

Employee Engagement

Employee empowerment research reveals that employees’ perceptions of their value to an

organization improve their productivity, morale, and retention. Engaged employees identify with

the organizational goals of an employer and feel connected, through their work and relationships,

to that organization. Cardus (2013) identified five “levers” of engagement, and stressed the

importance of having competent mangers who understand the importance of each of these levers

to the success of the organizational mission. According to Cardus (2013), “a competent manager

is one who is able to add value to work and enhance employees’ decision making and judgment,

allowing each to do his or her best work” (p. 29). A competent manager comprehends

organizational goals and communicates them to all members of the organization. Rodgers (2009)

defines a creative leader as one whose efforts are aimed at effecting productive change. It is

important to realize that change requires acceptance and collaborative effort between both

managers and employees.

The literature emphasizes that organizational goals and employee goals must be aligned

and integrated. These practices all fall under competent management; autonomy between front-

line managers and employees adds to the effectiveness of workers and their perception of value

to the organization. Cardus (2013) noted that “without a competent manager, employee

engagement will not happen and underperformance will plague the organization and the team”

(p. 29). Cardus (2013) detailed the importance of contextual goals, which drive the success of

any organization. According to Cardus (2013), goals must be “set correctly” and specific to the

position that they are set for; they cannot be so broad in scope that the employee is drifting

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aimlessly like a plastic bag in the wind and it cannot be so narrow that the person feels

constrained and cannot do their best work” (p. 29).

Goals must be measurable. Cardus (2013) argued that the best measurement is achieved

through objective metrics. Objective metrics allow employees to have non-subjective standards

of evaluation that mark their performance or regression. Employees and managers agree on

performance goals, creating both an objective standard of work performance, but a sense of

engagement between the organization, manager and employee. Managers must provide adequate

resources and autonomy for employees to accomplish their goals. Resources are not limited to

materials and supplies, some of the most important resources are informational. According to

Cardus (2103), “without the knowledge of where to find answers will cause frustration and an

employee who is not engaged” (p. 29). Autonomy is a key element in competent management:

managerial competence is measured not by micromanaging employees but giving them the

chance to do their best work by communicating goals, providing adequate resources, and

offering timely feedback. Employees who have a clear understanding of company goals and their

role in attaining those goals feel less frustration and aimlessness; they feel engaged in goal

attainment and identify themselves as important to company success.

Engaged employees are more likely to commit themselves and their careers to companies

they work for. Kelleher (2010) stressed the need for managers to understand that employees must

be individually engaged in order to maximize their potential. Ghosh (2013) identified the

importance of the psychological effects of empowerment not only for the employee but the

organization. Gazzoli, Hancer, and Park (2010) studied the relationship between employee

empowerment and customer orientation. Noting that one in four restaurants fail within the first

year of operation, they found that job satisfaction, organizational commitment, and job

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involvement are inter-related. If the goal of an organization is to provide customer satisfaction,

which is paramount in the hospitality industry, then management must empower and engage

employees.

The Relationship of Employee to Organization

Alfes, Truss, Soane, Rees and Gatenby (2013) discussed topics of Human Resource

Management (HRM) and how these practices affect line managers, management behavior,

employee engagement, task performance and innovative work behavior and argued that front-

line managers need to be properly trained with these HRM practices to ensure that employees

understand the culture of the organization. Such practices are essential; they establish the

foundation of any work environment. Gazzoli, Hancer, and Park (2010) noted that the employee-

organization fit is essential to promoting positive relationships and held that careful screening

during the application process and during the initial entry training period will help create a

positive workforce. According to Alfes, Truss, Soane, Rees, and Gatenby (2013), these practices

include measuring financial performance and organizational effectiveness. They noted that, with

the correct support and training in place, an organization can entrust that the managers and

employees will take pride in their work and use ethical tactics to make decisions and judgments.

These researchers identified three areas where research is limited: how an employee initially

respond to the introduction to an organization’s HRM practice or practices, how to understand

employee perspectives during the process, and how to expand such studies beyond their present

self-reporting restrictions and perform meta-analysis. Some areas of HRM practices have been

overlooked and too much emphasis is placed on financial performance and financial

compensation. Although such performance is important, Alfes, Truss, Soane, Rees, and Gatenby

(2013) noted that “there is a case to be made for focusing on additional or behavioral outcomes

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at the individual level, where the link between experiences of HRM practices and a range of

outcomes is more proximal, and which may be considered to be an intermediary outcome and

core driver of overall organizational performance” ( p. 840).

Alfes, Truss, Soane, Rees, and Gatenby (2013) studied the role of line managers in

articulating organizations’ HRM policy to employees. Their study found that line managers

played a critical role in employee engagement, demonstrating that HRM managers and line

managers must have a clear understanding of one another’s mission. If employees are given

different expectations from line managers than they were told to expect during their induction

training, confusion resulted and the employees became disillusioned. Initiatives from HRM

departments need to be reiterated and reinforced by line managers in order to create the desired

organizational culture.

The Vital Role of Two-way Organizational Communication

Kelleher (2010) noted that the fundamental problem in organizational communication is

that managers often assume it already exists. Top-down communication in the form of directives

and assignments is linear and does not provide employees with an avenue of response.

According to Kelleher (2010), two-way organizational communication is essential to team-

building and serves as a fundamental method for addressing issues that can improve both

productivity and morale. Communicating the importance of individuals to an organization is

often overlooked; formal and informal recognition of effort and achievement are key elements to

empowerment and retention. Lorinkova, Pearsall, and Sims (2013) point out that effective

communication in team-building exercises helps empower individuals and reduces the tendency

to remain silent for fear of ridicule or criticism.

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The Positive Effects of Socialization

Lewis, Thomas, and Bradley (2012), explore employee engagement and the induction

process in a bakery organization and found that “inducting, bringing about, or introducing a new

employee to an organization is a fundamental step” in the workplace socialization process (p.

26). Employees’ first exposure to the culture of new employment sets the pace for performance

expectations for their entire career. Lashley and Best (2002) noted that “the induction process is

any arrangements that are created to familiarize a new employee with an organization, its safety

rules and general conditions of employment” to create a safe stable environment in which a new

employee enters (p. 40). This process is considered the foundation of a new working

environment, a new culture and a new organization. Lewis, Thomas, and Bradley (2012) stress

that the standard that is perceived by the new employee is how they formulate and calculate their

performance. Employees look within their ranks for standards of behavior: other employees

impart the culture of an organization to those who are newly-hired. Managers need to make sure

these policies and procedures are practiced by all with integrity, efficiency, and dedication.

Lewis, Thomas, and Bradley (2012) note that the socialization of an employee is not just a

procedural process but carry longevity in their day to day work. According to Lewis, Thomas,

and Bradley (2012), if this part of the integration and socialization process is not done correctly,

the employee will leave the organization within a short span of time: “a clear link is visible

between socialization and employee engagement, which is the social aspect required for an

employee to be engaged (p. 41). Engagement is directed by management to all new employees; it

“requires an employee to openly seek meaningful relationships with others to build those

relationships and attempts to support the induction of that company’s culture” (p. 41). Gazzoli,

Hancer, and Park (2010) identified four dimensions of employee perceptions in the workplace:

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“meaningfulness, competence, self-determination, and impact,” and noted that these dimensions

are affected by individual perceptions, managerial feedback, and the social interactions among

co-workers (p. 4).

Employee Empowerment

Ghosh (2013) described employee empowerment as a “transfer of power from managers

to subordinates” and suggested that it is “an optimal strategy to obtain competitive advantage in

the changing industrial scenario” (p. 95). Empowerment involves delegation of authority and

provides a greater degree of autonomy to workers than traditional directed leadership

presupposes. Lorinkova, Pearsall, and Sims (2013) found that empowering leadership improves

team performance and adaptation. Although there have been many studies investigating the role

leadership has on empowerment and team development, results have been unclear. Lorinkova,

Pearsall, and Sims (2013) held that previous studies lacked two important factors. First, previous

researchers have not addressed the importance of empowerment on team effectiveness over time;

second, there is a gap in previous literature regarding when empowering leadership might be

more or less effective. Gazzoli, Hancer, and Park (2010) found out that there are two dimensions

to employee empowerment: the first is the behavior of a supervisor and the second is the

“psychological state of the subordinate” (p. 4).

Empowerment requires a willingness on the part of the manager to allow employees

additional autonomy and self-determination. In addition, the employee must be willing to accept

those qualities. This illustrates the mutualism and collaborative nature of empowerment models.

Empowering leadership is a behavioral process; through motivation and cognitive action, leaders

not only assign tasks but also provide feedback, support, and autonomy in order to empower

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individuals and help them gain confidence, judgment, and self-reliance. Kelleher (2010) noted

that employee empowerment and engagement go hand in hand. Kumar and Ravindranath (2012)

addressed the importance of mentoring, which they call a “synergistic relationship between two

or more people . . . that achieves more than each could alone.” (p. 32). The mentor becomes a

personal bridge between the employee and the organization, providing insight and access that

might otherwise be gained only through long tenure and experience.

Traditionally, advocates of employee empowerment felt that the supervisor’s behavior

was the driving force in creating employee feelings of empowerment; more recently, researchers

believe that formally and informally removing traditional feelings of “powerlessness” helps

foster attitudes of “self-efficacy” (Gazzoli, Hancer, and Park, 2010, p. 4). This research

illustrates the importance of changing employee attitudes through engagement, communication,

and autonomy.

Key Motivators in Retention

Retention is an organization’s ability to keep workers in its employ. Without effective

retention, human resource managers and front-line supervisors have a “revolving door”

workforce and must constantly recruit, interview, hire, and train a constantly-changing pool of

employees. This is costly and inefficient and does not promote organizational success. Employee

retention, like employee engagement, is voluntary; the decision to remain employed is mutually

shared by employer and employee alike. In the past, the consequence of quitting a job had

serious financial consequences – in addition to lost wages, the ex-employee lost benefits and was

ineligible for unemployment compensation because of the voluntary departure from the job.

Marciano (2010) studied a broad range of organizations with successful employee-employer

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relations and identified seven critical elements to their success. Creating the acronym RESPECT,

Marciano’s elements are recognition, empowerment, supportive feedback, partnering,

expectations, consideration, and trust. Many of these elements have been explicitly covered in

this literature review, and others are implicit to this discussion, but the element of partnering

deserves separate mention. Often, top-down managers create a tiered workplace – the traditional

‘ladder’ model of organization in which new employees start at the bottom and work their way

up. Partnering, on the other hand, creates a mutualism that is often lacking in traditional relations

among managers and employees. Banther (2014) noted that transforming traditional leadership

requires openness, listening skills, investing in employees, encouraging employees, and

appreciating employees. Manchester (2012) found that innovative retention programs like tuition

reimbursement reduced employee mobility by making employees feel that their organizations

were invested in their long-term relationships through partnering ventures. Marciano (2010)

stressed that partnering required organizations to create a culture of collaboration in which

“employees are treated as business partners” (Marciano, 2010, p. 80). Manchester (2012) noted

that standard human capital theory and training practices often do not invest in the general

human capital of their workers because they do not want to lose trained workers to outside

employers, but also demonstrated that companies that do not incorporate comprehensive

retention plans into their business models fail to capture the return on the significant investment

in time and training that goes into employee orientation. Innovative programs, including tuition

reimbursement over time, give employers a greater return on their investment; retention

programs make employees less likely to be attracted to poaching offers by other employers.

Advantages of Disinterested Support

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The business landscape is littered with the carcasses of failed businesses. In the wake of

the recent global economic downturn, business leaders have realized that one of the hallmarks of

many successful organizations is an engaged and empowered force of employees. Mignonac and

Richebe (2013) explained that engagement results as part of a formal exchange: social contract

theory holds that a form of contract exists in the workplace between employers and employees:

when one party received a gift, it responds by giving in return. The basic form of exchange is

when workers receive wages in exchange for labor; when an employer takes extra interest in an

employee’s opinion, judgment, expertise, or potential for greater contributions to the firm, the

employee responds by making a greater investment in his labors. Mignonac and Richebe (2013)

indicated that the best way to promote engagement is through disinterested support. Instead of

creating an environment based on obligations and payback, employers should make an effort to

create a disinterested environment based on “altruism and group gain” (p. 72). Disinterested

organizations can create the kind of dynamic, thriving workforce that is needed to meet the

challenging environment that is driven by responsiveness rather than indebtedness. Kumar and

Ravindranath (2010) noted that disinterested organizations embrace change; they make an effort

to change managerial mindset of micromanagement and consider the advantages of “visionary,

broad-based thinking” (p. 32).

Disinterested organization takes time to generate results. Lorinkova, Pearsall, and Sims

(2013) noted that directed (top-down) leadership results in “higher initial performance” than

teams that employ an empowering leadership approach (p. 586). This initial success is often

misinterpreted to be the ‘immediate results’ desired by many top managers. Lorinkova, Pearsall,

and Sims (2013) demonstrated that empowering leadership generates greater improvement over

time with a greater potential for highest achievement than directed leadership teams. Supportive

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organizations will not grow stagnant when directed leadership cannot inspire greater overall

results than those initially achieved. Absenteeism and turnover will reduce when employees feel

engaged and appreciated by the organizations they work for.

Summary

There has been a great deal of research conducted on employee impact on organizational

strength in the past decade. Increasingly, employers are shifting their management models from

the traditional top-down models that minimized employee input in organizational culture in favor

of empowering styles that encourage employees to invest in the organizational mission. This

change in mindset stems from the need to halt turnover and increase retention of skilled

employees so the Human Resource departments of companies do not have to constantly recruit,

orient, and train new workers. Research suggests that companies that adopt programs of

employee empowerment and engagement will experience long-term increases in productivity,

although short-term success still favors the top-down management style. The reason is that

employee engagement is a gradual process that requires employees to systematically encourage

investment of self-sufficiency that can grow into autonomy and increased productivity. The

ultimate goal, retention of engages employees, is met when line managers consistently support

the HR managers’ message and provide the resources, feedback, and encouragement needed to

help employees develop their best potential to serve the organization. Given the needs of the

hospitality industry to encourage all employees to be the ‘face’ of the organization, it is thought

that engagement and empowerment programs will create the cognitive synthesis for success.

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CHAPTER 3: METHODOLOGY

Three different research methods exist that can be incorporated in this research proposal:

quantitative analysis, qualitative analysis, and a literature analysis. Each of these methods can

involve primary or secondary research or a combination of both forms. Primary research is

generated by conducting trials, asking questions, and analyzing the results. Secondary research is

the examination of previously-conducted studies and other people’s research that has already

been conducted. To evaluate which method might best be implemented to study the potential

effects of engagement and empowerment on employees in the hospitality industry, each method

will be discussed and evaluated, in turn.

Quantitative Research

Quantitative research involves the collection and analysis of statistical and numerical

data. In quantitative research, experimental groups are sampled in order to obtain information

that can be applied to a larger group. One sampling method that is popular in quantitative

business research is the survey. Creswell (2007) defined a survey as a “quantitative or numeric

description of trends, attitudes, or opinions of a population by studying a sampling of that

population” (p. 153). Zikmund (2003) held that surveys are an effective method of “gathering

primary data based on communication with a representative sample of individuals” (p. 175).

According to Creswell (2007), there are four different ways to collect experimental data: “self-

administered questionnaires; interviews; structured record reviews to collect financial, medical,

or school information; and structured observations” (p. 155). The experiments are designed to

control as many variables as possible while targeting specific areas of inquiry so the researchers

can retrieve the most useful information. Surveys are an effective way of conducting research

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because the researcher directly asks people what they think. They also provide a rapid retrieval

of information. Unfortunately, many surveys are imprecise, because their questions are poorly

phrased, the sampled population is subjectively biased, and/or inadequate numbers of people are

sampled to provide representative results. Zikmund (2003) noted that non-response errors can

result when potential respondents are not available when contact attempts are made or when

some pre-selected prospects refuse to participate in the survey. Biases can occur on the part of

respondents and surveyors, either consciously or unconsciously. “Self-selection bias” can occur

when people who have strong feelings respond more enthusiastically to survey questions than

those who are indifferent to the topic (p. 178). Removing these potential biases is a critical

element in designing a reliable survey instrument.

Qualitative Research

Creswell defined qualitative research as a “situational activity . . . that consists of a set of

interpretive, material practices that make the world visible” (p. 36). Unlike quantitative research,

qualitative research does not seek statistical or numerical data that can be charted; rather, it seeks

the story behind the numbers that can shed light into more complicated or multifaceted problems.

It is an “inductive process” that studies individuals and locations in a “natural setting” and

“establishes patterns or themes” (Creswell, 2007, p. 37). These patterns may contain

interrelationships that are not as easily revealed in numerical analysis, which much be designed

for specificity rather than nuances or generalities. Qualitative researchers emphasize the “socially

constructed nature of reality, the intimate relationship between the researcher and what is

studied, and the situational constraints that shape inquiry” (Denzin and Lincoln, 2007, p. 4).

Unlike quantitative research, qualitative research makes no effort to measure or analyze

“quantity, amount, intensity, or frequency” (Denzin and Lincoln, 2007, p. 4). Qualitative studies

25

take the form of life histories, photographic essays, “first-person accounts,” and “ethnographic

prose” (Denzin and Lincoln, 2007, p. 6). Qualitative research often “gives a voice to the

underclass” because their stories are under-represented in traditional historical narratives (Denzin

and Lincoln, 2007, p. 8). Qualitative researchers are interested in trends but do not attempt to

quantify them or isolate them from the context in which they exist.

One form of qualitative research is narrative research, which documents individual

experiences and results in oral and written biographies. Essentially, narrative research involves a

person telling his story. Some narratives are transcribed from diaries, letters, or other written

accounts; others take the form of oral histories. These collected anecdotes or life histories are

“restoried” by the researcher in order to make sense of them, keeping in mind that there are

understories to all narratives that must be explained, as well (Creswell, 2007, p. 56).

Phenomenological research occurs when individuals who have lived through an experience

recount the event and their reactions to it. This form of qualitative research may involve one

individual or a group of individuals who shared the same experience. Creswell (2007) noted that,

instead of focusing solely on the people, places, or events that are commonplace in narrative

studies, phenomenological research is concerned with philosophical observations and is not

entirely objective. Observations being revealed are always conscious in nature, which means that

the individuals reporting their experiences may not be able (or willing) to express the entire

experience. Grounded theory research delves beyond mere description to produce an “abstract

analytical schema of a process” (p. 65). It is based on the belief that subjects should not be

scrutinized by pre-existing theories that might miss the true nature and context of the subjects’

conditions or experiences. Instead, theories should be advanced after the studies have been

completed. This means that, after individuals have been studied, the researcher generates a new

26

theory to explain the nature of their experiences. For example, after studying individuals who

have struggled with obesity, a researcher might study factors common to the subjects of his

research and propose a theory to explain why they were obese. There are two forms of grounded

theory research: the systematic approach and the constructivist approach. Ethnographic research

studies factors belonging to a specific cultural group; either a group that is isolated from diverse

society or attempting to cling to its traditions while immersed in diverse society. Creswell (2007)

observed that this form of study is best pursued by cultural anthropologists.

Creswell’s (2007) fifth category of qualitative research is the case study, which isolates a

specific instance or individual and examines it over a period of time. In case study research, data

is collected by means of interviews, recordings, and observations. The findings of a case study

are often applied to a larger group or organization; lessons learned by investigating individual

cases shed light on larger realities.

Unlike quantitative studies that have a distinct division between data collection and

interpretation, the writing process in qualitative research blurs the two efforts. The writing

process causes the fieldwork to be modified and revised by the writer, whose bias may endanger

the accuracy of the final product.

Literature Analysis

Literature analysis is an extension of a literature review; it thoroughly examines and

contextually analyzes a body of scholarly research to determine the applicability of research

questions. It is objective research in which the researcher’s opinion is not inserted into the

discussion. Peer-reviewed scholarly articles and books provide the literary context explored by

the researcher, who evaluates information based on prior study. Literature analysis is particularly

27

useful when it is impractical to conduct primary research due to logistical, time, or resource

limitations. When done well, literature analysis enables researchers to draw conclusions on

related subjects to the previously-conducted studies. In addition, connections can be drawn

between disparate subjects that share common elements.

Research Design

The optimal research method for this study is literature analysis. Given the broad

spectrum of venues within the hospitality industry, it would be unwieldy to attempt quantitative

analysis; it would be unlikely that any primary research instrument could encompass an adequate

cross-sectional sampling. The studies already examined in the literature review reveal that

similarities exist among employee/employer/HRM issues in other businesses than can be

correlated to the hospitality industry. Relationships between labor and management present

common elements (recruitment, induction, training, sustaining, and retaining) that will reveal

problems and potential solutions that will translate well to the hospitality industry.

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CHAPTER 4

Discussion, Conclusion, and Recommendations

Discussion

According to Schuyler, et al. (2014), employee engagement has two key elements:

satisfaction with one’s job and contentment with one’s role in the company (p. 4). Employee

engagement is, therefore, connected not only employees’ job performance but to employees’

attitude toward their employer. Recent studies have emphasized the importance of employee

engagement to organizational success. Alfes, Truss, Soane, Rees, and Gatenby (2013) and

Cardus (2013) emphasize the importance of accurately measuring the degree of engagement

employees feel when they are properly trained, mentored, and socialized. Mignonac and Richebe

(2013), Lewis, Thomas, and Bradley (2012) , Manchester (2012), and James and Matthew

(2012), reach consensus that employers have often ignored or under-rated the positive and

negative contribution employees make to corporate culture. In the hospitality industry, where the

guest experience is characterized by frequent interaction with staff members at all levels,

employee engagement is critical to organizational success.

Kelleher (2010) points out that traditional industries focus on profit, which is their

managerial bottom line. In the hospitality industry, however, the bottom line is people, because

people are critical to every aspect of guests’ experience. Given the myriad of employee/guest

interactions that exist in a typical hospitality industry: from the initial interaction (reservations

clerk, front desk clerk, hostess, doorman, valet, or concierge) to the interactions throughout the

hotel stay, spa visit, or restaurant experience (servers, housekeeping personnel, bellhops, sales

29

clerks, activities staff, lifeguards, entertainers, and managers), people are critical to the overall

experience. Therefore, it is not surprising that the hospitality organization has begun studying

ways that can improve the ways employees perform their duties and interact with guests.

Recent scholarship concludes that leadership styles directly influence employee

socialization and engagement. Lorinkova, Pearsall, and Sims (2013) hold that directed

leadership, which retains a hands-on, authoritative management of employees, has a negative

impact on employee engagement because it reduces employees to the role of task completion and

denies employees the opportunity to influence their job performance through intuition, creativity,

or pride (p. 2). Understanding the key role employees make to the overall culture is critical to the

hospitality industry, because employees have such a visible role in the guest experience. An

example is The Disney Company’s encouragement of housekeepers to add decorative touches to

guest rooms in Walt Disney World, Disneyland, and the Walt Disney Cruise Line. In addition to

maintaining guest room cleanliness and appearance standards, housekeeping employees add

personal touches as a surprise for returning guests: these include origami figures made of hand

towels and washcloths and arranging guest souvenirs in guest room windows. Disney, along with

top hotel chains, encourages housekeeping staff to personalize guest welcome cards by signing

their first names. This gives staff members a staff of ownership, because the guests are staying in

rooms they are willing to identify as their own. Instead of acting invisible, housekeeping

employees are encouraged to greet guests whenever they encounter them (Disney, 2014, p. 23).

These efforts reduce the monotonous nature of repetitive duties and provide an outlet for

employee creativity.

Employee engagement is largely dependent on employee motivation. Schuyler, et al.

(2014) cites a 2010 Corporate Executive Board study showing that engaged employees put 57%

30

more effort into their jobs and were 87% less likely to resign (p. 3). Creating a more satisfied and

stable workforce will enhance the company’s profits and ease strains on human resources

departments caused by frequent turnover and constant recruiting. Engaged employees are likely

to emerge from training programs that are comprehensive rather than cursory. Schuyler, et al

(2014) identified four elements that can lead to an engaged workforce: connecting business goals

to the interests and passions of employees, consistently articulating those goals in clear

communication, turning those words into deeds by aligning communication with business policy

and operations, and helping employees find avenues for job satisfaction (p. 4). The

comprehensive nature of employee engagement requires a serious commit to its success at all

levels of management (Schuyler, et al., 2014, p. 5).

Employee engagement, while easy to define, is difficult to create and sustain. Hospitality

employees are often hired to perform specific tasks that are consistent and unchanging. For

example, the routine duties of a hotel or resort housekeeping attendant do not vary over time.

Each room in a hotel has the same layout, the same furniture, and the same bathroom fixtures.

Bedding must be changed, towels must be exchanged; toilets, sinks, and bathtubs need to be

cleaned and sanitized, carpets must be vacuumed, and trash cans must be emptied: every room,

every day. There is a high standard that must be constantly met, because every mistake has the

potential to spoil the guest’s experience. In the kitchen, food must be prepared to order in a

sanitary environment, and every dish that is served has the potential to create a positive or

negative guest experience, so the repetitive nature of the housekeeping attendant’s duties can

cause diminished job satisfaction and increased boredom. Boredom can diminish job satisfaction

and a lack of positive feedback from supervisors and guests may lead to disengagement. To

31

combat the routine nature of the job, top managers advise that human resource managers need to

carefully induct new employees and introduce them to the socialization process.

Because many hospitality jobs are static and repetitive, some employers have

created a culture that provides exercise, nutrition, and social integration to create a cohesive and

integrated team. The co-founder of Panda Express offers Zumba classes to his employees as a

way of infusing exercise, social experiences, and a healthy lifestyle into the restaurant chain’s

employees. These activities, while not linked to the actual tasks of providing quick-service

Chinese food to customers, create an employee-friendly environment that socializes employees

and helps them gain enjoyment in their work. By creating a connection between work and

enjoyment, Panda Express retains more workers (Berman and Rosenberg, 2011, p. 2).

According to a Pricewaterhouse Coopers Employee Engagement Index (EEI) cited by

Schuyler, et al. (2014), there are five elements to employee engagement: alignment,

achievement, pride, advocacy, commitment, and discretionary effort (p. 6). Although all five

elements seem to originate from the employee, employers must create a culture that inspires

employees to perceive added benefits to their job beyond the paycheck they earn each week.

“Culture eats strategy for breakfast:” this term aptly describes the reason why most

companies fail in their employee engagement efforts. Strategy is generally a linear plan that

focuses on favorable outcomes for the company. Culture is a circular concept in which everyone

in the company participates. For example, culture depends on input from management and

employees alike. In order to determine ways in which employees will align their interests,

talents, and emotions with the company’s mission, it is first essential to understand employees’

perceptions of the company Focus groups, informal surveys, and anonymous questionnaires are

32

all effective ways in determining what employees think of their jobs, but regular communication

between management and the workforce is the best way to understand what employees are

thinking. Schuyler, et al. (2014) argues that employees will closely align with companies that

commit to the well-being of the workforce. Childcare, exercise classes, informal social activities,

family events, recognition for outstanding service, and strong relationships with team members

and supervisors all contribute to alignment, commitment, and pride. Significantly, both the

discretionary effort and advocacy can have a real impact on both operations and human

resources. Discretionary effort is the initiative employees exercise when they go out of their way

to handle a guest problem, pick up litter, correct an observed deficiency before it is noticed by

guests, and perform innumerable tasks that improve facility appearance and operational success.

Advocacy is demonstrated when employees recruit friends and acquaintances to work for the

company, creating a bridge between their personal and professional lives. The notion that an

organization can become an extended family is a key component in employee engagement.

Sturman and Withiam (2014) cited a study of Pizza Hut restaurants seeking to determine

what elements created a lasting restaurant experience and found that employee attitude and

quality of food were the most memorable parts of the dining experience. This ran counter to the

assumption that modernizing the physical environment, décor, and atmosphere and changing the

menu offerings would make the most lasting impact on customers. The goal for Pizza Hut was to

create positive “sticktion,” an enduring satisfaction that remains with the guest after the

experience is over (Sturman and Withiam, 2014, p. 1). Days or even weeks later, customers who

recalled a positive experience at the restaurant were most likely to return. This demonstrates the

key importance of people in the hospitality organization and illustrates the important role

employees have in the mission of customer service and satisfaction.

33

Companies using a multi-dimensional approach to employee engagement have the

greatest potential for success. Training, which begins from the moment of hiring, sets the tone

and establishes employer expectations. Mentoring creates strong team relationships and allows

experienced employees to gain valuable training experience while providing a level of social and

professional support to newly-hired people. Cardus (2013) demonstrates that every level of

management, from the boardroom to the front line, has a key role to play.

A key component in employee engagement is frequent and consistent communication.

Gazzoli, Hancer, and Park (2012) and Ghosh (2013) reveal the importance in making employees

aware of company objectives, successes, and areas in need of improvement. Giving employees

the latitude to make decisions and invest critical thinking into problem solving increases

employee engagement, as does the implementation of objective metrics to measure progress and

regress. Recognizing improvements brought about by employee autonomy is an excellent way to

improve employee engagement, especially when the employer provides sufficient resources and

training to boost employee confidence and competence.

Lewis, Thomas, and Bradley (2012) emphasized the need to set the pace for new

employees as soon as they are hired: citing examples from a bakery organization, they found that

creating a clear set of expectations and explaining the need for high employee professionalism

gave that organization the best chance of training and retaining top employees. Managers and

current employees set standards for new employees to follow, so at every level, employees can

help socialize new employees. Job shadowing, training videos, even break-room etiquette all

contribute to setting a high standard and give employees opportunities to take pride in their work.

34

Top-rated employers like The Disney Company train new cast members by having them

observe seasoned cast members by shadowing their duties. This process, called “earning my

ears,” allows new employees to participating in the guest-relations experience without having

full job responsibilities (Disney, 2014, p. 1). They are identifiable by red ribbons under their

name tags that allow guests and cast members alike to recognize them as trainees, and each day

their managers give trainees frequent feedback and on-the-spot correction. On the day trainees

earn their ears, they are recognized by managers and co-workers – this positive experience

socializes them to their job environment and expectations and creates a mutual system of support

so that the entire cast functions at “Disney standards” (Disney, 2014, p. 1).

An essential part of the training process is goal-setting, one of the five “levers of

employee engagement” (Cardus, 2013, p. 28). Goals may range from productivity to accuracy,

cleanliness to efficiency. If the goals are clearly articulated, accurately measured, and objectively

evaluated, employee engagement will increase. Employee job satisfaction will increase as

absenteeism decreases, resulting in greater employee performance and increased levels of

retention. Making employees feel essential to the organization’s mission improves morale and

increases engagement. Lewis, Thomas, and Bradley (2012) stress that articulating goals should

begin at the onset of the hiring process. Employee awareness of corporate goals should be part of

informal and formal contact between employees and management.

Training, communication, mentoring, and autonomy will ideally result in what is known

as “self-efficacy,” the personal internal desire to excel at one’s work (Gazzoli, Hancer, and Park,

2010, p. 4). This is the optimal form of employee engagement, because employees take initiative

and pride in their work. They “own” their job and identify with their employers’ mission. Self-

efficacy is not a static quality, however: it must be nurtured through constructive feedback and

35

rewards. In some cases, providing customer feedback and tying performance recognition to

performance can sustain self-efficacy.

Employees may be attracted to a job for different reasons: financial rewards, employee

benefits, job security, or personal challenge and satisfaction. Simply stated, the employee seeks

rewards. The expected reward is the agreed-upon salary, but incentive rewards can improve

employee engagement. In some cases, the rewards can be financial – monetary bonuses, paid

days off, or other incentives. Other rewards include recognition and promotion. Many employers

have found that identifying outstanding employees and posting their pictures prominently in

public view can have a positive impact on employee morale; others designate preferred parking

spaces for employees who excel in their work. Bonuses, gift cards, or paid time off are attached

to incentives like Employee of the Week or Employee of the Month. These programs

demonstrate management’s awareness that employees are key elements to providing guest

satisfaction.

Some hospitality organizations actively solicit customer feedback and share it with

employees. At its theme parks, The Disney Company maintains guest relations offices and

encourages guests to provide written feedback about the cast members who provided exceptional

service. Each day, these comment cards are collated and distributed to front-line supervisors,

who read the comments to the cast and present copies of the cards for cast members as

keepsakes. Pins, theme park passes, and other informal recognitions are given to outstanding cast

members. When cast members receive formal performance evaluations, guest comment cards are

included as evidence of excellent employee performance (Disney, 2014, p. 4).

36

Another technique to create and maintain employee engagement is the customer

satisfaction survey. Throughout the hospitality industry, employers have implemented online

surveys in which customers can earn a chance in merchandise, food, or a cash prize drawing in

exchange for completing a survey about their experiences. Some restaurants, like Red Robin, tie

employee schedules to the results of these surveys: employees who receive top ratings are

scheduled to work during the restaurant’s busiest and thus potentially most profitable, hours of

operation. Red Robin also ties technology into employee retention, providing hostesses and

bartenders with iPads so they have immediate access to detailed information. New employee

training videos are also uploaded on these iPads so that every employee can access critical

information using technology that they are already familiar with and social media applications

promote employee relationships outside the work environment, too (Boulton, 2012, p. 1). This

innovative programs has increased retention and improved employee product knowledge; it

illustrates ways that employers can take advantage of a young generation’s familiarity with

technology and incorporate the workplace into their lives.

Employee engagement improves job performance, workplace morale, and employee

retention. Engagement must begin immediately during the hiring process, when human resource

personnel assign each new employee a mentor. The induction process sets standards of dress,

grooming, and behavior. Adopting programs similar to Disney’s “earning my ears” training

period provides immediate supervisors the opportunity to provide immediate feedback and gives

new employees the chance to experience their jobs without having their full responsibilities.

When employees complete their probationary period, they should be recognized publicly for

their successful accomplishment. They should be prepared to mentor others, formally and

37

informally, since their enthusiasm upon completing their probationary period can have positive

impact on seasoned employees.

Technology will play an increasingly-important role in employee engagement. Using

tablet devices like iPads for training, scheduling, and product knowledge provides immediate

access for employees to improve their skills; these devices will also optimize the communication

that Cardus (2013) notes will optimize the goal-setting and goal-attainment processes. Uploading

employee handbooks and personnel manuals gives employees immediate access to corporate

expectations. Allowing employees to use these devices to resolve scheduling problems and

communicate socially will help connect their professional and personal lives. Software programs

capable of “wiping” corporate data in case of loss or theft preserve proprietary information

(Boulton, 2012, p. 2).

Conclusion

Although the body of research on employee engagement in American business is

growing, work focused on the hospitality industry remains inadequate. The literature reveals the

benefits to be gained from creating a cooperative, collaborative culture in which employees share

management’s vision of organizational success and are invested in achieving it. There are,

however, no studies that point to proven methods for success. This is due, in part, to the

relatively recent awareness of the need for comprehensive effort to foster positive employee

involvement in corporate organizational culture. Complicating the issue is the fact that many

companies do not make the commitment to fostering employee engagement until it is apparent

that a culture of employ disengagement must be overcome.

38

Leadership is critical to culture, and the most effective leadership styles for employee

engagement combine effective communication, strong goal-setting skills, and the ability to

inspire autonomy and confidence in their workers. Adding value to employees’ workplace

experience, including fitness and recreation opportunities, generate goodwill and demonstrate

corporate interest in employee’s lives both inside and outside of work. Leaders must also be

willing to invest the time, energy, and resources into the long-term cultural revolutions within the

company that will allow employee engagement to blossom and flourish.

Current research reveals the myriad of benefits employee engagement creates for the

organization, in terms of increased productivity, improved morale, and long-term commitment of

employees. Engaged employes can be effective mentors, trainers, and even recruiters, providing

a valuable service to human resource departments. In the hospitality industry, engaged

employees can contribute dramatically to the overall guest exeriece by consistently presenting a

positive image of the organization. Employers have everything to gain and nothing to lose by

committing themselves to a culture that nurtures engaged employees.

Recommendations for Further Research

The hospitality industry will benefit greatly from future research into employee

engagement. Panda Express and The Disney Company have already found that inviting

employees to make a greater commitment to their jobs can have positive outcomes, but these

efforts may only scratch the surface.

Some tools for creating cultural change already exist. Models like Pricewaterhouse

Cooper’s Employee Engagement Index (EEI) are an excellent tool for measuring corporate

culture, but the importance of mobilizing all leaders and manager from the executive to the front-

39

line supervisors demonstrates the need for a complete corporate alignment in order for successful

outcomes to occur. Of critical nature is input from employees themselves, who may be reluctant

to offer candid viewpoints for fear of jeopardizing their jobs or alienating their supervisors.

Studies of former employees who left their jobs voluntarily will help identify root causes of

dissatisfaction; exit interviews may also provide valuable information employers can use to

identify areas of employee dissatisfaction. In areas of highest turnover, it may be useful to study

job descriptions and training programs to identify inconsistencies or inaccuracies in corporate

communication. Interviewing executives, front-line supervisors, and employees will determine

whether corporate goals are being articulated to all personnel; creating focus groups from all

echelons to generate mission statements and training materials may help identify areas where

collaborative effort is needed. Comparing highly-skilled positions, like chefs, choreographers,

bartenders, and concierges with more menial positions like valets, housekeepers, and

groundskeepers may determine if a class culture exists that may prove detrimental to a corporate

culture that fosters employee engagement.

Within the hospitality industry, there is a wide variety of organizations, but all of them

depend on human interaction between employees and guests. Restaurants, cruise ships, theme

parks, hotels, and tourist attractions rely on employees to welcome, entertain, and satisfy their

patrons. Until recently, employees have been perceived as cogs in a great wheel rather than key

faces with the ability to please or displease paying customers. The variety of venues available to

the public means that competition for business is at a premium, and businesses rely of “sticktion”

to inspire guests to return in the future (Sturman and Withiam, 2014, p. 1). Previous research has

proven that former corporate emphasis on moderning physical atmosphere and environment were

not as successful in causing guests to return than positive encounters with employees during

40

previous visits. This anectodatal evidence can be studied further in order to find trends that can

help leaders transform their organizations, thus improving an entire industry while making the

service force more content, invested, and secure. The potential benefits of future research are

unlimited.

41

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