Literature Review.docx

Literature Review.docx

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LiteratureReview

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ExecutiveSummary

Thefocusofthisreportisdiscussingtheemployeesatisfactionthatinfluencestheemployeeturnover,qualityofserviceandcustomersatisfactioninBK’sSettlersMotorLodgeinHamilton.BK’sSettlersMotorLodgeasamotelhasahighservicequalitystandard.PlacingmoreemphasisontheconceptofemployeesatisfactioncanallowBK’sSettlersMotorLodgetoensurestabilityofthequalityofsotheycanincreasecustomerloyalty.Inthispointofview,thecompanyplacesmoreattentiontoemployeesatisfactiontheycanbuildbothinternalrelationshipswiththeemployeesandexternalrelationshipswiththeguestsatthesametime.

Thereportisalsobasedontheemployees’personalviewswiththeirworkatBK’sSettlersMotorLodge.Aliteraturereviewwillbeincorporatedforanalysisofthisconcept.Thereportusedaquestionnairetocollecttheinformationfromtheemployees,alsoimplementedbyaninterviewwiththeownersofBK’sSettlersMotorLodge.Thepurposeofthissurveyistodistinguishtheperceptionofemployeesatisfactionbetweentheemployeeandtheemployer,andthendiscussmethodsforimprovingemployeeoperation.Thesurveyincludesavarietyofdataanalysis.Thesecontaindifferentmethodssuchasreliabilityanalysis,demographic,frequencyanalysis,descriptiveanalysis,independent-samplet-test,paired-samplet-test,ANOVA,andthefactorsanalysis.（addsomedetailofthesituationthatfoundfromthedataanalysis.）Thesedataanalysiswillhelpdiscussthefoundationoftheemployeesatisfactioninfluences.Finally,recommendationwillbesuggestedtoimprovethedevelopmentoftheemployeesatisfactioninBK’sSettlersMotorLodge.（addsomedetailoftherecommendation）.

TABLEOFCONTENTS

ExecutiveSummary…………………………

1.0Introduction………………………………..

1.1BackgroundoftheBK’sSettlersMotorLodger…………….

1.2Objectiveofthisresearch…………………….

2.0LiteratureReview………………………..

3.0Methodology…………………………

4.0DataAnalysis………………………………………

4.1Questionnaire………………………………

4.2Interview…………………………………..

5.0DataDiscussion………………………………………

6.0Conclusion……………………………………………

7.0Recommendations……………………….

References…………………………

Appendices………………………………

One:

Thequestionnairesurvey…………….…………….…

Two:

Interviewquestions–Owner…………………

1.0Introduction

Inordertoadopttheincreasinglycompetitivemarket,moreandmoreorganizationsareseekingwaystoimproveservicequalityandmeetthecustomer’sexpectation（Yee,Yeung&Cheng,2008）.Also,humanisconsideredasthemostimportantassetinmanyindustries,employeesatisfactionisoneofthemostpopularphenomena（Matzler,Fuchs&Schubert,2004）.Inthisreason,manyorganizationsareplacingmoreemphasisonsatisfyingtheiremployeesasawaytoimprovetheiroperationalefficiency,andraisingservicequality（Yee,Yeugn,&Cheng,2008）;especiallyforserviceindustries.Theimportanceofhumanbehaviorsuchasemployeemannerstowardtheircustomers,employeeloyalty,andorganizationcommitment（Yee,Yeugn,&Cheng,2008）,makeadifferenceintermsofaccomplishingthepurposeofthetasksuchastheserviceofwaiters（Ugboro&Obeng,2000）.Theemployeesatisfactionnotonlydirectlycreatesapositiverelationshipwiththeemployeeturnoverrate,butalsoindirectlyaffecttheserviceimprovements,customersatisfactionandproductivity;alsohighemployeesatisfactionmeanshighmotivationaswellasworkeffectiveandefficientworkhabit（Matzler,Fuchs&Schubert,2004）.Therefore,toattractandmotivatetheemployeeshasneverbeenmorecrucial（Tommi,1999）.Thus,thesatisfiedemployeeiscreatingoperationalefficiencyandincreasingcompetitivenessofthehospitalityindustry.

Theconceptofemployeesatisfactionisbroad,itincludesthejobitselfandtheworkingenvironment,soitisdifficulttomaintainanddominate（Snipes,Oswald,LaTour,&Armenakis,2005）.Hereby,itisnecessarytounderstandemployeesatisfactionissuesinthehospitalityindustryasitcouldhelptoreducetheperformancemistakeandthecustomerdissatisfactioninthedirectandclosecontactindustry（Yee,Yeung,&Cheng,2008）.

1.1BackgroundoftheBK’sSettlersMotorLodge

TheBK’sSettlersMotorLodgeispartoftheBK’sMotelGroup.Thereare10motelsoftheBK’sMotelGroup;theyarelocatedthroughoutNewZealand’sNorthIsland.BK’sMotelGroupoperateonthebasisofproviding“quality,convenienceandvalue”toitscustomers.ThefirstoftheimplementationofBK’sMotelGroupinvolvesprovidingthecustomerquality,andaffordableaccommodation.AlltheBK’sMotorLodgesarerated4starsplus,whichensureaconsistentstandardofexcellence.Thesecondoftheimplementationisconvenience,thereareBK’sMotorLodgenearyoufromWhangaruirightdownasforasWangarui.ThefinalimplementationofBK’sSettlersMotelGroupisvalueofmoney,alltheBK’sSetterMotorLodgesprovidetheirguestsacompetitiveprice,ifthecustomervisitsBK’sMotorLodgesregularly,customerscanaskforacorporaterate（BK’sMotelGroup,2005）.

TheBK’sSettlersMotorLodgeinHamiltonopenedinMay,2003.Ithas16largeandsmoke-freeunits,whichinclude8twostoryexecutivesuiteswithmodernandpowerfulshowersorluxuriousspa-bathes,andtowspaciousdisabilityunitswitheasyaccesstotheunitsandbathrooms.BK’sSettlersMotorLodgeiscurrentlyoperatedbythreeowners,theystartedrunningthemotelin2006.Themotelopensallyear,theownerstakecareofthemotelduringmostofthetime,andhireparttimemanagersrunallaspectsoftheirmotelwhentheownersgoforaholiday.Theownerstaketheroleofreception.Thereare10employeesworkinginthemotel.TheaverageannuallabourcostofBK’sSettlersMotorLodgeis$15,000,thisisasignificantcostforasmallprivatebusiness.OtherimportantcostsforBK’sSettlersMotorLodgeincludeannualpremiselease（$174,375）andannualinsurancecosts（$4320）,andthebiggestcostsforBK’sSettlersMotorLodgeistheannualOperatingcost（$82,000）.TheaverageannualprofitforBK’sSettlersMotorLodgeis$135,500.

1.2Objectiveofthisresearch

BK’sSettlersMotorLodgeisafourplusstarmotelandaimstoprovideastandardofexcellentservice,forthatreason,employeesatisfactionisoneofthemostimportantfactorstoprovidethequalityserviceforcustomers.Formanysmallprivate-orientatedmotels,itisdifficulttoofferahighpaymentandpromotionopportunitiesforemployeescomparedtothelargehotelsandrestaurants,thus,itisimportantfortheprivate-orientatedmoteltopaymoreattentiontotheemployeesatisfactioninordertomaintainthecustomersatisfaction.Therearemanyquestionsthatencouragethisresearchwhichinclude:

whatbenefitstheemployeeexpects,whatthingstheownercoulddotomeettheemployeeexpectation,andwhattheownercoulddotoreducetheemployeedissatisfactionandreducethecustomercomplains.Themainobjectivesofthisresearch:

●IdentifyingthedimensionsofemployeesatisfactionconducetothecustomersatisfactionintheBK’sSettlersMotorLodge.

●Investigatingthegapbetweenthefactorsthatleadtotheemployeesatisfactionfromtheemployee’sperspectiveandownersperspectiveinBK’sSettlersMotorLodge.

●Examinewhatarethefactorsthatcausestheemployeesatisfactionanddissatisfactionintheprivate-orientedmotel.

2.0LiteratureReview

ThisLiteraturereviewfirstlydiscussesthedefinitionofemployeesatisfaction,theimportanceofemployeesatisfactioninthehospitalityindustry,astheemployeesatisfactionimpactontheemployeeturnover,servicequalityandcustomersatisfaction,andthefactorsthataffectemployeesatisfactioninthehospitalityindustry,whichincludeworkingpressure,workingcondition,managementstyle,andpaysandbenefit.

OneofthemostcommondefinitionshasbeenofferedbyKim,LeongandLee（2005）whodefinedemployeesatisfactionastheemployeescontentwiththeirjobandtheorganization,inthehospitalityindustryemployeesatisfactioncouldencouragetheemployeetotreattheircustomerwiththeutmostrespect.

InPatrice,employeeimpactonmanyareasinhospitalityindustry.Firstly,itwilldiscusstheemployeesatisfactionimpactontheemployeeturnover.AccordingtoMatzlerandRenzl（2006）thereisconsiderableattentioninrelationtoemployeesatisfactionoverthelastfewyears.Also,Karsh,Booskeandsainfor（2005）andMatzler,FuchsandSchubert（2004）regardedemployeesatisfactionasimportantinthehospitalityindustry,asitstronglyrelatetotheemployeeturnover,servicequalityandcustomersatisfaction.Employeesatisfactionimpactsontheemployeeturnoverwillbediscussedfirstly.“Employeeturnoverisaratiocomparisonofthenumberofemployeeacompanymustreplaceinagiventimeperiodtotheaveragenumberoftotalemployees.”（“Whatisemployeeturnover?

”2008?

?

?

）.Highemployeeturnoveriscostlyforthehospitalityindustry（Lam,Baum&Pine,2003）,becausethebusinessnotonlyneedtogivetheseverancepaybutalsoneedtodotheadvertisingtofindandhireasuitableemployee,andthebusinessneedtoprovidethetrainingforthenewemployeeandsuffershortfallsincustomersservice（Pfeffer,2005）.Additionally,Zuber（2001）discovered“overthelastdecadethefoodserviceindustry,hamperedbythelabourshortage,hasmadestridestoimproveretentionratesasoperatorshavelearnedthehardwaythathighcostsassociatedwithturnoverarenotgoodforbusiness–bothfinancialperspectiveandmoralstandpoint.”（p.147）.Therefore,employeeturnoveriscostforthebusiness,andmanytourismcompaniesareattemptingtoreduceit（Lam,Baum&Pine,2003）.Se