An organization’s success mostly depends on the employee performance. In today’s world, managers and employers of labour all over the world are continually being faced with an important and crucial managerial problem which is employee motivation and job satisfaction among their employees. Explore and understand those factors affect the employee performance in hotel industry is the purpose of conducting this research.The hotel sector plays an important role in the tourism industry in any economy and the employees play a crucial role in developing services to the customers or the tourists visiting the hotels(Chen, 2013).
Tourism industry was a very large industry and has a tendency to grow very fast. In fact, tourism industry combines with many other industries such as food and beverages, transportation, health and beauty and hotel industry. Nowadays, tourism industry is so vital to the national economy and world economy that it affects the economy of every nations, the job creations and income distribution. (S. Suriya, 2013).
In chapter 1, there will be the start with the background of the research to fully understand the concepts of hospitality industry and factors influence on employee performance in the hotel industry. Next section is problem statement to determine the problems that will impact on employee performance in hotel industry.
1.1 Research Background
Mauritian hotel industry
Tourism industry in Mauritius is constantly growing annually and it provides a considerable amount to the government. Hotel industry in Mauritius seems to be a promising business in this sector as the existence of tourism industry since tourists are considered as important customers.
According to figure 1.1, it indicates that the number of arrivals of tourists from all over the world had an increase of 5.2% from 2016 to 2017(Statistics Mauritius). It indicates that high occupancy rate is most likely to occur as a result of more foreign visitors who come to Mauritius. Tourism is seen as a vital industry in Mauritius since it is a major source of its foreign exchange earnings(Seebaluck, Naidoo&Ramseeok-Munhurrun, 2015).
Figure 1.1- % change in main tourism indicators, 2017 compared to 2016
The motivation of the employees is a major issue in the hotel industry as it directly affects to employee turnover and overall quality of service of the concerned hotels(Chen, 2013).The success of organizations is dependent on the quality of human resources(Akinyele,2007). The hotel industry is a high guest service-oriented business where production and consumption of the service happens simultaneously (Choi & Dickson, 2010).
Employees are the most valuable assets in the hotel industry, as they are the one through which hotel guest experience most of the service (Shoaib, Noor, Tirmizi& Bashir, 2009) and moreover, a hotel requires a skilled workforce to function effectively (Gallardo, Canaizares, Guzman & Jesus, 2010). The profitability of the hotel industry dependes primarily on the services provided to the customers by the employees. This implies that the hotel managers should consider the employee performance and motivation as it helps to determine the quality or the standard of services provided by the hotels (Chen, 2013).
Employment data for the tourism sector as obtained from the survey of Employment and Earnings relate to employment in food service, hotels and travel and other services establishments with 10 or more workers. Latest available data for March 2017 indicate that employment in those establishment increased by 0.5% to 30,974 as compared to 30,806 for March 2016
Many researchers discovered that the hotel industry is facing the problem of overcoming personnel shortage (Mohamad & Nurzeti, 2010). It reflects the turnover and employment rate eventually.
It can be said that the human capital determines the success of the hotel industry. It is because this industry is also considered as labor-intensive sector that rely heavily on human interaction and activities. Besides, high demand of qualified employees is essential in order to provide a higher quality of services towards their customers (C.Wah et al, 2013). The higher intention to leave they are, the poorer the quality of the service provided. Hence, hotel industry is encouraged to retain those valuable employees as possible. The hotels have also to realize that the excessive turnover rate is detrimental to them since it is costly for them to recruit, select, hire and supervise new comers than training the existing employees (C.Wah et al, 2013). As a consequence, the failure to retain the talents has led to low productivity thus minimize the profit of the organization (Mohamed & Nurzeti, 2010).
In our research, we will study on how is the empowerment, transformational leadership, teamwork and work environment influence on the employees performance in the hotel industry of Mauritius. High level of employee performance is more likely to gain competitive advantage (Mohamed & Nurzeti, 2010).
Significance of this study
The hotel or the accommodation sector have been a major contributor to the overall revenue of the tourism sector of Mauritius. The country witnessed a positive trend in the growth of revenue in the recent years. This is primarily due to the improvement where the hoteliers are expecting an increase in the level of Average Daily Rates (ADR) of visitors, occupancy duration and revenue per available rooms (RevPAR)
The purpose of this study is to investigate on factors that affects employee performance in the hotel industry. These days, employers should concern about the factors that affects the employee performance due to it will also affect the entire organization as well.
This research will provide additional information and knowledge. Therefore, managers can focus on those factors which can really affect the employees performance and help in organizing for earning higher profit in the future. To retain existing customers, organization should enhance on employee performance to provide high quality of service. So that, employer are require to know the factors that affects the employee performance.
Lastly, this research can hope to help employers to understand better on employee performance. Thus, employers concern and take consideration on employee performance be likely to lower employees turnover rate and increase customer satisfaction.
The research questions that stated below are the main focus for this proposed study:
1. How does empowerment affect employee performance in hotel industry?
2. How does transformational leadership affect employee performance in hotel industry?
3. How does teamwork affect employee performance in hotel industry?
4. How does the work environment affect employee performance in the hotel industry?
5. Are the empowerment, transformational leadership, teamwork and work environment will influence employee performance?
Hypotheses of the study
H0: There is no significant relationship between empowerment and employee performance
H1: There is significant relationship between empowerment and employee performance
H0: There is no significant relationship between transformational leadership and employee performance.
H1: There is significant relationship between transformational leadership and employee performance
H0: There is no significant relationship between teamwork and employee performance.
H1: There is significant relationship between teamwork and employee performance.
H0: There is no significant relationship between work environment and employee performance
H1: There is significant relationship between work environment and employee performance.