The Hospitality Industry Is One Of The Fastest Growing Businesses
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Published: Mon, 5 Dec 2016
The hospitality industry is one of the fastest growing businesses all over the world that generates billions of money and offers plenty of new career and employment opportunities to people with various backgrounds. The hospitality industry is a big business all over the world.U.S. hospitality industry sales are expected to reach a record $537 billionin 2007, employing 12.8 million individuals, adding two million new career and employment opportunities in the next decade (Vivienne, 2007).However, despite all the benefits, the hospitality industry has the highest turnover rate among the service industry. In 2009, the average employee turnover rate in budget hotel sector only reached 34.5%. It has been demonstrated thousands of times that it is a big challenge for the hospitality industry to well manage, retain and motivate its human resource (Catherine, 2007). Moreover, since the hospitality industry always presents a negative image to both applicants and employees, they seldom have motivation to stay in a hospitality firm. For example, staffs have to adapt to constantly repeated work, high stress and low pay if working in the hospitality industry.
The major objective of this study is discuss what the problems now in hospitality industry in order to provide useful information to managers which can keep their employee and performance better.
According to William James, a psychologist from Harvard, if the regular payment is paid on time, employees usually take out only 20% to 30% of their capacity; if the payment is paid together with sufficient incentives, they are probably to play to 80% to 90%. He believes that through the motivation the performance of employees may be added with the ability and reach a high level. Researches proved that using scientific rational and effective incentives to motivate staffs can attract and retain qualified personnel, improve productivity, and help the organization to maintain and gain strength in the fierce competition.
Lower turnover rate.Employee turnover is always considered costly, because companies should pay a lot energy and money to recruit new ones. Staffs who feel committed to their companies will stay and bring a wealth of experience.These satisfied long-serving staffs help to increase productivity and profitability while the frequent dimmision of employees will lead to a poor moral within the organization.Long-serving staffs also keep continuity of service that provide standarded service to customers and keep their satisfaction.Taking good motivation method means keep core value of the hotel.Employees who get well motivated stay much longer and bring more value for company.
Develop employee enthusiasm.Motivation leads employees to be enthusiastic for work and be committed to the firm. Enthusiastic outperform others by providing better products, in the hospitality industry, that is service. And such positive attitude seems to be able to transmit among people. Most people are enthusiastic when they are hired: hopeful, ready to work hard, eager to contribute and so on. However, not all employees can be so positive and active at the first place, they should be motivated to be willing to provide excellent service. In order to do this, the organization needs to make its employees feel more involved in the practice. Good managers can give their subordinators an impression that they are more like a business partner. When employees have a sense of ownership, they will combine the organization’s benefits with their own sake and do their best to help the firm to achieve its goals.
Motivation also encourages independent thinking. Every people have their own particular traits and characteristics, therefore they will have various opinions when facing the same circumstance. One of the most well-known features of the hospitality industry is changeable. There is no settled and unique pattern for the hospitality industry to grow; even a little change can have a big impact on the operation. (Like when company is going to try something new,ask employee for advice and make them feel a sense of achievement). Then, the hospitality firms should innovate instantly to keep up with all these changes. To do this, the outcomes cannot be achieved without employees’ help. If the companies can give their employees an opportunity to try something new, they can give a surprise in return. There is a Chinese proverb saying “People’s potential is infinite”. After all, it is the employees that conduct the daily operations and contact directly with customers, they can figure out the most effective way to do their job.
Current situation of Motivation in hospitality and its impact
Although hospitality industry is blooming ,there are still many problems existing in human resource management.
The overall low quality, lack of high-end talent and professionals.
On the one hand it influences by tradition opinion that hospitality staff do not need high education backgrounds.On the other hand, college students major in hospitality do not have patience to work from base level and easily feel frustration.So many of them move to other industries,resulting hospitality industry`s talent shortage.
High turnover rate.It close links to former reason.
As whole society holds the opinion that service industry employee do not need high education backgrounds.It cause low payment of labour. Meanwhile hospitality industry, complexity work ,hard task and stress lead high turnover rate ,especially front-line workers.And most of them feel lack of motivation Employee turnover has been a large problem in the hospitality industry and some ofthe reasons cited are low compensation,inadequate benefits, poor working conditions and poor worker morale and job attitudes. ( Leonidas Maroudas, Olivia Kyriakidou and Artemis Vacharis,2008).ã€€
Motivation theories and their conflicts on HSP HRM
Theorists and their theories
Although there are so many theorists in motivation ,three major approaches that led to the modern understanding of motivation.They are Maslow’s need-hierarchy theory, Vroom’s expectancy theory , Herzberg’s two factors theory,McClelland’s Achievement Motivation Model and Murray’s manifest needs theory.
According to Maslow, (John,2008), “employees have five levels of needs: physiological, safety, social, ego and self-actualizing.” The lower level needs has to be satisfied before the next higher level need would motivate employees.He based his theory on the fact that people work to fulfill basic needs. These needs are unique to everyone. The Physiological needs are the basic needs that are crucial to sustain life which are food, water, and air. The next level is based on Security. Maslow felt that all people have the need to feel secure and safe. The third level is Affiliation. This includes the need to belong to a group and to have the respect of friends and family. The fourth level is the Esteem.These include personal feelings such as achievement,mself-worth and recognition. The last level is Self Actualization. In this level the needs are based not on personal but on the needs of others(John,2008)The basic assumption of Maslow`s theory is that once a need has been met the motivation ,the need of this motivation decrease and become less importance and another need comes after.Lower level of needs are the foundation of higher needs.Also Maslow described as Deficiency Needs, physiological, security, and affiliation as the Growth need for those helps a person develop into a healthy individual.
Vroom`s theory is based on the understanding of that effort on job will effect performance of work and performance of work will effect reward and they can be both positive or negative.More positive means more likely the employee will be highly motivated.On the contrary, the less positive the reward the less likely the employee will be motivated.This model is based on five variables which are first-level and second-level outcomes, expectancy, instrumentality, valence, and putting it all together. The first variable is first and second level outcomes, these are based on the job itself and rewards. The expectancy variable is the individuals’ ability to complete the job. The third variable is instrumentality, which is the probability that the performance will lead to various outcomes. Valence is the individuals’ preference of the possible rewards that may come from job performance. The last variable is putting it all together is part of the employees belief regarding the efforts of performance and the attractiveness of the outcomes that are associated with the job.(John,2008)Expectancy theory regard employee motivation as a function of the individual’s of successful performance (expectancy).The theory also emphasis the importance of the reward(instrumentality) as the key point of motivation and lead by employee performance.
Herzberg’s work categorized motivation into two factors (John,2008): “motivators and hygiene’s.”Motivator or intrinsic factors, such as achievement and recognition, produce job satisfaction. Hygiene or extrinsic factors, such as pay and job security,produce job dissatisfaction. Herzberg studied that whether and why people like their jobs.He divided people`s demand into two groups;it is well known as the Motivator-Hygiene model.The first part is the motivation factor ,which base on job,such as the chance of getting promotion,the responsibility to the job.It influences the satisfaction of jobs.The factors are directly related to how the individual relates to the job.The second kinds of factors called the hygiene factors.It includes company policies,salary,supervision.The second method can reduce the dissatisfactory of work.However,it can do nothing to help employees get more motivated.
Another theory of motivation is proposed by David McClelland called the Achievement Motivation Model.He argued that people have three important needs for achievement, affiliation and power, and that (John,2008), “people are motivated according to the strength of their desire to compete or to fulfill their needs.” The level motivation that an individual has depends highly on their experiences growing up, work situations, and personal circumstances. McClelland measured an individual’s strength with the Thematic Apperception Test (TAT). The TAT uses a series of pictures to stimulate responses from the person being tested. One of the goals of this test is to obtain the individuals perception of society.According to his theory,a person’s motivation is unawareness.It just lies below the surface in daydreams.So the daydreams are a way to test an individual to investigate employees` goals and motivation and find out what and how the best way to motivate them.Therefore people can even be taught to change their motivation by changing their daydreams.
Murray in his ‘manifest needs theory’ reinforces this view stating that, “many individual’s have a ‘need for autonomy,” which is likely to be activated best in jobs with high degree of discretion independence, ironically these are the very same people an organization needs for detailed CRM work(John,2008). These agents accept a top attrition to a aphorism based organization,are absurd to accommodate to aphorism based systems, and will leave the alignment if their development is not appropriately considered. Several amount capacity were articular as getting acute namely;”education, counseling,communication, and association responsibility.Motivating advisers by application performance-contingent rewards is a accepted administration practice. Pay-for-performance is acclimated to advance two ends. First, it is accepted that these systems will actuate advisers to access their accomplishment and thereby their performance. Second, these advantage affairs are generally alien to bigger adjust the efforts of advisers with authoritative goals and objectives set by management.
This was contradicted by the idea that motivating people was more complicated than motivating donkeys which was introduced in the 1950s and ’60s with the rise of the humanist school.Prominent among its members were thinkers such as Maslow,Herzberg Vroom and McClelland.Through their great effort,people recognize that employees are social man rather than economic man and care more about psychological demand of employees than ever before.
Current situation in hospitality industry
Table 1 comes from employees from 5 hotels.Participants in this study were asked to rank certain attributes of internal service quality that motivated them to stay in the restaurant industry. Table 1 displays the frequency of these rankings. Rankings varied slightly for each age group. Money was by far the top motivator for all age groups. However, after money, age also show a great influence on their decisions. Those in the 18-25 and 46-55 age groups were most motivated by a fun working atmosphere (Catherine, 2007). Those in the 36-45 age group were least motivated by a fun working atmosphere; rather, they ranked health benefits and flexible hours as top motivators. Participants in the 26-35 age group also ranked flexible hours (Catherine, 2007).
Although it is hard to make a clear definition of white-collar workers and blue-collar workers, most employees can not be considered as white-collar workers because most of their jobs are labour related.According to the findings in Table 1,best motivator for blue-collar worker is payment.White-collar workers are quite different from them and they are tend to pay more attention on opportunity and personal achievement. A examine of the characteristics of successful companies by Stanford Graduate School of Business professor Jeffrey Pfeffer; he found out that well-performed companies tended to be those high-paying companies. He gave one simple reason: (John,2008), “There is, in fact, a labor market,” says Pfeffen”It is difficult to be under the standard wage or even at the standard and still get a competitive work force.”
It seems that there is a big different between the facts and theories.Most theorists regard psychological satisfaction as most important motivator ,however, facts show that money is most important motivator in hospitality industry. Regardless of those theorists would have managers to believe(John,2008), “money is what most employees need most from their work.” Additional these are plenty of proof show that money works best among the motivation factors. As the high speed spread of ESOPs and the current develop of employeestock-option plans, management recognized that employees are stakeholders of the company to certain degree. Gates says(John,2008), “If you want people to participate, it helps to build an economic foundation that supports participation. How else do you connect people to organizations?” Almost 10,000 companies and 10% of the nation’s work force now joined in ESOPs in the United States.
Also there quite different demands of people who come from different age groups.Age was pivotal to the analyses for this data, explaining the primary reasons for employees to stay in their job as well describing what motivated them to stay in the restaurant industry. Underlying the significance of age for this study could be verification of what is often stated about the restaurant industry: servers are young adults who see the job as temporar>’employment. It seems likely that those who work in hospitality are pursuing other careers or higher education. This would seem to fit the generally accepted perception of restaurant servers as young adults, and many of the respondents for this study fit that profile. Forty-seven percent of the respondents in this study said they intend to leave the foodservice industry within two years. Additionally, in this study, 70% respondents were under the 36.
In fact, there is no error on both sides. The premise is to understand phase of employees` career ladder. An employee need different when he or she get promoted from front a line worker to a manager.There is not a simple answer on how to motivate employee.Money does help sometime ,but it can not work along.As environment change , demand of employee also change.
In hospitality industry there is not a simple answer to how to motivate employee.Like other method can be taken ,money does help sometime ,but it can not work along.As environment change ,demand of employee also change.Manage should constantly understand employee`s demand and its trend of changing.Managers also should consistently accept employee appeal and its trend ofchanging.Ultimately, the success of any business rests in the easily of its employee’s,alignment from advantage and abundance to application and retention. Affective advisers intoday’s association has become acutely challenging. The actuality is, motivational techniques are basic and should be acclimated to acquire the employees’ adherence and trust, in accession to acceptable job achievement and all-embracing satisfaction.The key to affective others is to advance the adapted adjustment for anniversary individual.Organizations use abundant methods innorder to actuate their employees.Some capital motivational techniques cover creating a fun workplace, accessible communication, recognition, rewards or incentives, and advance opportunities.Creating a fun ambiance in the abode stimulates a absolute emotion. Employee’s who adore the activities at plan consistently attending advanced to each alive day. One way of creating fun is by award which tasks are enjoyed a lot of by anniversary agent and allotment those tasks if appropriate. A additional way of creating fun is to align a affair day in anniversary of a specific holiday, sports event, or even someone’s birthday.Employee action in the accommodation industry is basic to the approaching success of hotels because if accustomed correctly, managers can abstain the top costs associated with about-face (Dermody, Young, & Taylor )Motivate agent calmly can not alone abate the about-face over amount but aswell a cogent way to advance agent performance.
There is no agnosticism that advice can advice managers actuate employees.But some managers are abridgement of abilities if ambidextrous with communication.This is aswell a acumen accord to top about-face rate.Communication is apparently the a lot of axial action in organizations(Debotah, 2008), Advice achievement is authentic as thesatisfaction with advice that is affiliated to an employee’s positionin the alignment (Debotah, 2008). In this present study,advice achievement is proposed as a adjudicator in agent plan motivation.Satisfaction with the admeasurement to which advice in the alignment motivates and stimulates advisers to advance performanceis the adjudicator amid assumption and plan motivation. Supervi.sorsand managers who are accessible to ideas-, who accept and pay attention, andwho action advice for analytic job-related problems and action feedbackshow the mcxierating aftereffect of action on plan motivation, which is reflected in advisers who accept pay raises, bonuses, befalling for advance and accept a activity of accomplishment. Advice allows advisers to acutely accept the greater rewards they accept for convalescent their perlbrmance. The abstinent aftereffect of valence on plan action shows achievement w ith able and organized advice that motivates advisers to plan harder to accomplish .
1.Respect and affliction about your employees.Staff aswell charge to be admired and cared.Retail behemothic Wal-Mart managers of about all cutting the “We affliction about our employees,” the badge, advisers are alleged “partners” rather than employees, which is one of the affidavit for Wal-Mart’s success.Respect for employees, advisers feel valued, their built-in action will be decidedly added incentive.So as hospitality.
2.Appreciated.Performance of advisers charge to be recognition.Regardless of what kinds of ,achievements should be accustomed and the best acclaim in public, which can accommodated the staff’s faculty of account and respected.The absurdity should be accustomed to advisers of tolerance.When advisers fail, accomplish mistakes, it is important not advised the losses acquired by failure, but the agents accumulate up with the abortion assay and countermeasures, so as to anticipate it happens again.
Distinction the appearance of employees` career
Managers should accept the date of employees` career and draw up the action plan for anniversary groups of employees.Have a bright compassionate of alone needs of employees, able incentives.In adjustment to accommodated altered demands for altered kinds of employees.For foreground band workers ,when accede actuate them, money may appear first.If the agent is a administrator ,more befalling may actuate he or she most.Another archetype is pay greater absorption .To changeable agents salaries, men are added admired self-development opportunities for advisers and business prospects.
We have examined motivation and the different factors and theories that affect it, but one thing is for sure and that is motivated employees are needed for organizational survival. Motivation can range from as simple and cost effective as just praising an employee, to as costly as providing a company car. Motivation can take several forms, but the sooner employees realize this, the happier and more productive their employees will be.
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