1

ACKNOWLEDGE
Firstly, I would like to express my appreciate to my research supervisor, Dr. Tran
Ha Minh Quan for his support, suggesting, guidance during time of my dissertation.
Secondly, I would like to express my gratitude to Prof. Nguyen Dinh Tho for his
effort in thoroughly guidance, encourage and support to every student throughout
two-year-course.
Thirdly, this research was contributed by my classmates, my colleagues, and was
moral assisted by my family. I would like to send my deepest thank to them.
Last, ISB staff did helped, supported with their best for convenience of MBUS
2010. I appreciate very much for their contribution to my present result. 2

ABSTRACT
Within 10 years, hotel industry in Ho Chi Minh city has developed impressively and
has quite highly demanded in employing labor force. Working environment is stable
and professional is one of many attractive points of hotels, but it contains many
characteristics which may demotivate employees. Motivating staff to work better,
more efficient is always one of business goals, especially in this special industry.
This study aims to investigate which factor affecting to hotel employee’s
motivation. The result showed that recognition, development, supervisor and
promotion are four factors which affecting to hotel employee’s motivation in Ho
Chi Minh city context.
Keywords: employee motivation, hotel industry, recognition, Ho Chi Minh city
3

Contents
ACKNOWLEDGE 1

4.3.Adjustment of hypotheses and research model 38
4.4. Regression analysis 39
4.5. Verification the different level of motivation in personal characteristics 43
4.6. Discussion about findings 44
CHAPTER 5. CONSLUSIONS AND RECOMMENDATIONS 46
5.1. Recommendations 46
5.2. Limitations and recommendation for future researches 50
REFERENCES 52
APPENDIX 57

5

List Of Tables
Table 2.1. A Reorganization of Maslow's and Alderfer's Hierarchies 59
Table 2.2. Summary of factors affecting to employees’ motivation in hotel
industry 19
Table 3.1. Scales of Management 26
Table 3.2. Scale of Working conditions 27
Table 3.3. Scale of Recognition 27
Table 3.4. Scale of Development 28
Table 3.5. Scale of Motivation 28
Table 4.1. Demographic Statistics of the Respondents 32
Table 4.2. Cronbach’s Alpha results of each measurement 33
Table 4.3. KMO and Bartlett’s test for independent variables 35
Table 4.4. KMO and Bartlett’s test for dependent variables 38
Table 4.5. Pearson Correlation Coefficient 39
Table 4.6 Summary output of Regression Analysis 40
Table 4.7. Summary output of Regression Analysis after remove one factor 41
Table 4.8 Personal characteristics and employee’s motivation 43
Table 4.9. Hypotheses testing 45

data. That result has contributed to general development of hotel industry. This field
had been attracting nearly 11 billion USD with 247 projects up to 2009; ranked the
3
rd
after industrial processing, manufacturing and real estate. The more development
in hotel industry, the more demand of labor force in this field. But hotel industry is
a kind of service industry, whose products created from human’s contact, owned
unique characteristics. Seasonableness is a stand out characteristic, which influences
to labor force in this field. In the peak period, hotels need a large amount of labor
force, working with high productivity. But in low season, they keep a few
permanent employees. The consequence is an unstable labor force, demotivated
part-time employees and negative influence to performance of permanent staff.
Customer target in hotel is tourists, who come from different countries, which
owned different cultures, hobbits, customs, etc. Servers, who directly contact with
customers, need to understand their requirements in order to assure quality service.
The consequence is the stressful job toward servers. In addition, employees in hotel
are required to work in high specialization, under high pressure of discipline,
together with sensibility, accuracy and consistency.
For those above characteristics, labor force in hotel is likely to leave when they are
under high pressure and demotivated from management team. High staff turnover is
a common and costly problem in hotel industry. Reasons include such as low pay,
antisocial working hours, menial work and limited career opportunities (Xander Lub
et al 2012, cited in Barron, 2008; Davidson et al., 2011; Kusluvan and Kusluvan,
2000; Walsh and Taylor, 2007). An organization will be forced to invest million
dollars in recruiting, orientating, training, etc. if they own an unstable workforce.
9

Without continuity in customer relationship, organization does not have customer
loyalty, stressful management, conflict happens easily and low efficiency. Those
make difficult for company to compete on marketplace. Hence, constructing a good

finance, human resource, etc.
1.4. Research contribution
This research has contributed to measurement system of working motivation level
in hotel industry. In reality, this research will help Managers who working in hotel
industry in decision making in human resource management, creating appropriate
decisions in managing, in order to increase productivities and employees’
motivation level. Otherwise, the result of this research has contributed to human
resources management researches in overall and in hotel industry.
1.5. Research structure
This study includes four chapters after chapter 1 Introduction, as below:
Chapter 2 – Literature review : this chapter includes Definition of motivation,
theories of motivation, previous researches in hospitality industry and identifying
significant motivational factors in this paper
Chapter 3 – Research method: this chapter consists research process, measurement
scale, the pilot test and the main research which was conducted.
Chapter 4 – Data analysis: this chapter describes how each measurement scale was
evaluated and the result of testing hypothesis. It consists of sample description,
measurement scale data analysis, regression analysis and evaluating the impact of
personal characteristic on employee motivation.
Chapter 5 – Conclusion and Recommendation: this chapter presents brief
description about research findings and some of implications has mentioned. At the
11

end, research limitation and recommendations for future research have presented as
well. 12

CHAPTER 2. LITERATURE REVIEW

stress, especially during more challenging time.
2.2.2. McClelland’s Need Theory
In the publication “The Achieving Society” in 1961, McClelland described the
theory of needs focusing on three needs: achievement, power and affiliation. The
need for achievement was defined as the drive to excel, to achieve in relation to a
set of standards, to strive to succeed. The need of power was defined as the need to
make others behave in a way that they would not have behaved otherwise. The need
for affiliation was defined as the desire for friendly and close interpersonal
relationships. McClelland proposed that high achievers are more likely to be
successful entrepreneurs. The need of affiliation suggested that people have the
desire to spend time in social relationships, join group, and wanting to be loved. The
need of power reflects an individual’s desire to influence, coach, teach, or
encourage others to achieve.
2.2.3. Herzberg’s two-factor theory
The Two-factor theory (also known as Herzberg's motivation-hygiene
theory and Dual-Factor Theory) states that there are certain factors in
the workplace that cause job satisfaction, while a separate set of factors cause
dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who
theorized that job satisfaction and job dissatisfaction act independently of each other
(Herzberg, 1959). Two-factor theory distinguishes between:
- Motivators (satisfaction): five factors stood out as strong determiners of job
satisfaction:
 Achievement
14

 Recognition
 Work itself
 Responsibility
 Advancement
- Hygiene factors (dissatisfaction): the determinants of job dissatisfaction were

Alderfer’s ERG theory differs from Maslow’s Need Hierarchy as ERG theory
demonstrates that more than one need may be operative at the same time. ERG
theory does not assume a rigid hierarchy where a lower need must be substantially
satisfied before one can move on. (Table 2.1)
2.2.5. Equity theory
The equity theory of motivation assumes that individual is strongly motivated to
maintain a balance between what they perceive as their inputs and their rewards
(Exhibit 2.3). Adams (1965) suggested that individual expectations about equity or
fair correlation between inputs and outputs are learned during the process of
socialization and through the comparison with inputs and outcomes of others. The
consequence of employee who perceiving they are not being treated fairly, create a
variety of options for the employees (Champagne, 1989). The options include
reducing their inputs through directly restricting work outputs, or increasing their
outputs in order to seeking salary increases or seeking a more enjoyable task. The
employee could withdraw from the situation, quit the job and seek another
employer.
2.2.6. Expectancy theory
Expectancy Theory proposes that a person will decide to behave or act in a certain
way because they are motivated to select a specific behavior over other behaviors
16

due to what they expect the result of that selected behavior will be (Oliver,
R.,1974). Victor H. Vroom (1964) defines motivation as a process governing
choices among alternative forms of voluntary activities, a process controlled by the
individual (Exhibit 2.4). The individual makes choices based on estimates of how
well the expected results of a given behavior are going to match up with or
eventually lead to the desired results. There are three mental components that are
seen as instigating and directing behavior: Valence, Instrumentality and
Expectancy.
2.2.7 Theory X and theory Y

- Commitment
- Feedback
- Task complexity
Five characteristics of Goal Setting theory is illustrated through SMART acronym,
which is applied widely in most of organizations. The Clarify of the goal is ensured
by making it Specific, Measureable and Time-bound. The Challenge associates with
Relevant, but must be Achievable firstly. The Commitment to the goal can be set
with A – Agreed and R – Realistic, instead of Achievable and Relevant. Agree
goals lead to commitment. The Feedback can be provided through Measurable.
2.2.9 Job Characteristics Model
The Job Characteristics Model (JCM) (Exhibit 2.6), as designed by Hackman and
Oldham attempts to use job design to improve employee motivation. the JSM
proposes relationships between three classes of variables:
 Core job dimensions
 Critical psychological states
18

 Affective outcomes
They have identified that any job can be described in terms of below key job
characteristics:
- Skill Variety: a degree to which a job requires different skills and talents to
complete a number of different activities.
- Task Indentify: the dimension refers to the completion of a whole and
identifiable piece of work versus a partial task as part of larger piece of work.
- Task Significance: is the impact of the task upon the lives or work of others.
- Autonomy: is the degree of independence or freedom allowed to complete a job
- Task feedback: individually obtaining direct and clear feedback about the
effectiveness of the individual carrying out the work activities.
- Dealing with others: the extent to which the job involves working closely with
other people.

Chasisawat (2010); Darrn Lee-Ross (1998); Terry Lam et
al (2001)
3
Recognition
Buckingham and Coffman (1999); Anastasios Zopiatis and
Panikkos Constanti (2007); Elisa Moncarz et al (2009)
4
Development
Buckingham and Coffman (1999); Charl Van Wyk (2011);
Elisa Moncarz et al (2009); Sunil Ramlall (2004)
20

2.3.1. Management
Barbara J. Kreiman (2002) in her paper about employee motivation, commitment
and retention has sorted factors which make employee motivational behavior into
two groups. The first one which belongs to individual concept are: needs, value and
beliefs, knowledge and skills, motivation and their interpersonal style. The second
one which belongs to job context are management/ leadership, rewards,
organizational environment, tools and equipment, atmosphere. According to her,
these factors are combined to Motivational behavior, which will lead to
organization’s commitment. In this paper, she specially emphasized role of
manager’s control, which drive employee satisfaction and commitment. Manager’s
control includes “providing recognition and feedback, the opportunity to learn and
grow, fair compensation reflecting an employee’s contributions and value to the
organization, providing a good work environment, and above all, recognition and
respect for the uniqueness of each person’s competencies, needs, desires and style.”.
Buckingham and Coffman (1999) points manager’s role in employee’s
commitment, that is they must have good communicate skills, providing positive
feedback in order to develop their staff’s strengths and overcome weaknesses. There
are many reasons for employee resigning cited in studies of Buckingham and

their working conditions, they become motivated and are less likely to quit their
jobs” (DeMicco and Reid, 1988; Vroom and Deci, 1970). In the paper of Darren
Lee-Ross, in order to improve working conditions in hotel industry, the Job
Diagnostic Survey, based on motivation theory of Hackman and Oldham (1980) Job
Characteristics Model, was conducted and recommended in practice. Using simple
Job Diagnostic Survey with 21-question version instead of the initial 87-question
version, managers can construct job profiles for each department. If any Core Job
Dimension receiving low score, the practical action taken. The formula for
motivation potential score (MPS) is given to compare with existing industrial norms
and organization norms. This applied survey will help managers find out their
22

managing “weakness”, in term of working conditions, and action taken to
overcome.
Terry Lam et al (2001) in his study of managerial job satisfaction in Hong Kong’s
Chinese restaurants has pointed that work environment and job itself are two factors
in predicting overall job satisfaction. Working environment is place of harmonious
working relationships between colleagues, unambiguous human resource policies,
and opportunities for employee development exist (Terry Lam et al, 2001). High
degree of autonomy of line employees or assistant managers is encouraged in this
paper. They should be given more power to make their own decision in restaurant
operations, dealing with customers or other colleagues, be encouraged to come up
with new and better ways of doing things to meet customer’s needs.
Kadasamy and Ancheri (2009) cited in Yu (1999) “it is a challenge for the
management to motivate employees to stay on the job, by ensuring measures at
enhancing the working condition to counter turnover”. Their study about quality of
work –life (QWL) in hotel sector and they identified eight dimensions of QWL: job
characteristics, person-job fit, company image, HR policies, physical working
conditions, work-life balance, work group relationship and dealing with customers.
Goal-setting is a part of job content. When goals are set for employees that need to

employees choose to stay or left an organization (Buckingham and Coffman, 1999).
So, it is very important in human resource practices of employees development.
“Development is considered as gaining skills and taking advantage of many
different methods of learning that benefit employees and organization alike”
(Simonsen, 1997). Development not only be promoted, but also be provided a
challenge, new learning opportunities or new tasks which contribute on skills
24

improvement or organization’s success, such as: training, cross-training, job
advancement, provide variety of knowledge or skills, etc.
The job should be designed for “enlarging” or “enriching” to account for
deficiencies of skill variety, autonomy and agent feedback (Lee-Ross, 1998). In
hotel sector’s practice, cross-training is encouraged for most of employees who
ready to improve their skills and “know-how” knowledge. Training is offered in
most of hotels in order to remind operation standards, introduce new products or
services skills. This is a good investment to people when there are many evidence
show that training activities are correlated with productivities and retention
(Moncarz et al, 2009). Moncarz et al (2009) cited in Youndt et al (1996) point that
human resource practices developing talent and team-oriented workers improve
employee productivity and customer satisfaction. Hotels should focus on training
and developing for their exist employees instead of waste cost on hiring or
orientation new employees, this would increase employee motivation, retention and
job satisfaction (Rashid, 2010, cited in Paswan et al, 2005).
Hence, based on previous researches about affecting of development on employee
motivation, the forth hypothesis is:
H4: Development positively affect to employee motivation.
2.4. Research model
According to above hypotheses, a research model was built as below:
25