Perceived Organisational Culture Stress and Job

5/25/2018 Perceived Organisational Culture Stress and Job

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Puangpen Churintr

PERCEIVED ORGANISATIONAL CULTURE, STRESS, AND JOB

SATISFACTION AFFECTING ON HOTEL EMPLOYEE RETENTION: A

COMPARISON STUDY BETWEEN MANAGEMENT AND OPERATIONAL

EMPLOYEES

Puangpen Churintr

Suratthani Rajabhat University

ABSTRACT

A significant problem in the tourism industry is the lack of skilled

employees. This study aims to investigate the influence of perceived

organizational culture, stress, and job satisfaction on hotel

employee retention. This study surveys 355 hotel employees in the UpperSouth of Thailand including 261 operational and 94 management hotel

employees, respectively. Using structural equation, the results indicate that

the low retention is an important problem. Data from in-depth interviews

was used as supplement to the survey data. For employees at the

operational level, perceived organizational culture is a more important

factor than job satisfaction. On the other hand, for employees at

management level, job satisfaction is more important than perceived

organizational culture. Stress has no effect on the employee retention of

both levels. The results of this study shed light on using tools to support the

retention of skilled hotel employees.

INTRODUCTION

Low retention is a serious problem in the hotel industry. There are different

schools of thought on factors affecting the hotel employee retention. For

example, some scholars found that organisational culture led to commitment

and that commitment, in turn, can be used as a better predictor of the

turnover rate of hotel employees than job satisfaction since those that are

fully committed tended to continue their work even with no job satisfaction(Steers, 1977; Griffeth, Hom & Gaertner, 2000). On the other hand, Zohar

(1994) found that stress affected the service quality. In addition, stress

resulted in less job satisfaction (Singh, Goolsby & Rhoads, 1994; Jones, Chonko,

Rangarajan & Roberts, 2007), increased the intent to leave (Jones et al., 2007)

and affected behaviour on leaving the job (Sagar & Wilson, 1995). In contrast,

Griffeth et al., 2000, found that job satisfaction is the most important factor to

the retention.

The problem caused by turnover of operational employees in the hotel

business is very important because it affects the employee performance and


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Perceived Organisational Culture, Stress and Job Satisfaction Affecting on Hotel

Employee Retention: A comparison study between management and operational employees

decision making to resign (Borchgravink & Boster, 1997). This problem affects

hotel service quality and expenses which in turn affects performance and

growth of the business. The expenses in training new employees are inversely

related with customer satisfaction and business performance (Hinkin & Tracey,

2000; Davidson, Guilding, & Timo, 2006). In addition, without change in

employees, training expenses can be saved because less training is required for

skilled employees (Furunes & Mykletun, 2005) and also reduces cost of job

advertisement, interview, selection and training processes (Pizam &

Thornburg, 2000).

The objective of this study is to investigate the relationship between perceived

organisational culture, stress, and job satisfaction on the retention of

employees at operational and management levels in hotel businesses from the

Upper South region of Thailand. The contribution of this study is to provideempirical evidence of competing theories, guiding suitable support tools to

human resource management in hotel business.

METHODOLOGY

Sample

The sample was hotel employees from 142 hotels, members of Thai hotel

association, in the Upper South region totalling seven provinces, namely:

Phuket, Chumporn, Krabi, Nakorn Srithammarat, Suratthani, Pang-nga and

Ranong. A questionnaire was designed to collect quantitative data. It was

tested for internal consistency of content and reliability of the tool beforebeing distributed to random samples which consisted of 261 employees at

operational level and 94 employees at management level.

Method

A Structural Equation model was employed in elucidating the factors affecting

retention of hotel employees at both operational and management levels. In

addition, in-depth interviews were used to further explore the results that

could not be explained by the survey.RESULTS

Descriptive statistics

Table 1 illustrates that the age of employees in the sample are between 19-59

years with an average of 32.22 years. Duration of working at the present hotel

is between 0.8-33 years with an average of 5.58 years. Duration of working in

the present position is between 0.08-22.50 years with an average of 3.47 years

and an average of working at management level of 1.23 years. The longest

duration of working at management level is 23 years. Duration of working

since graduation has an average of 9.64 years with the longest at 40 years and

duration of working at present hotel is more than 3 years. Qualitative analysis


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from the in-depth interviews shows that hotels did not have a policy of firing

even during low season but chose other means to solve the problem such as

leave without pay, energy conservation measures, reducing service-charge

payment, and arranging free-time activities such as cleaning, and exercise for

employees.

Table 1: Descriptive Statistics

Years

(n=355) Min Maxx

S.D.

Age 19.00 59.00 32.22 7.32

Duration of working at the present hotel 0.08 33.00 5.58 5.62

Duration of working in present position 0.08 22.50 3.47 3.31

Duration of working at management level 0.00 23.00 1.27 3.00

Duration of working since graduation 0.08 40.00 9.64 7.61

Relationship between perceived organisational culture, stress and job

satisfaction on the employee retention of hotels from the Upper South

region

1. Employees at operational levelTable 2 shows that perceived organisational culture consists of turnover

culture, politics and organisational support, which have average values at 3.41,2.81 and 3.37 respectively. Stress, which consists of role conflict, role

ambiguity, and role overload, show averages of being at different levels. Role

ambiguity has an average value at high level of 4.05 while role conflict has an

average value at moderate level and role overload has an average at low level

of 3.05 and 2.57 respectively. Job satisfaction consists of general, intrinsic and

extrinsic satisfaction. These have average values at high level of 3.81, 3.83 and

3.49 respectively. The retention of employees from operational level consists

of intention to leave, commitment, and job alternatives. Commitment and job

alternatives have average values at high level of 3.78 and 3.56 respectively

while intention to leave has an average value at low level of 2.55.

Table 2: Descriptive statistics of perceived organisational culture, stress, job

satisfaction, and retention of hotel employees from operational level


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(n=261) Min Maxx

S.D.

Turnover culture 5.00 1.00 3.41 0.89

Politics 5.00 1.00 2.81 0.73Organizational support 5.00 1.33 3.37 0.65

Role conflict 5.00 1.00 3.05 0.76

Role ambiguity 5.00 1.00 4.05 0.59

Role overload 5.00 1.00 2.57 0.68

General satisfaction 5.00 1.00 3.81 0.81

Intrinsic satisfaction 5.00 1.67 3.83 0.53

Extrinsic satisfaction 5.00 1.29 3.49 0.61

Intention to leave 5.00 1.00 2.55 0.87

Commitment 5.00 1.00 3.78 0.74Job Alternatives 5.00 1.00 3.56 0.69

2. Employees at management levelTable 3: Descriptive statistics of organisational culture, stress, job

satisfaction, and the retention of hotel employees from management level

Years

(n = 94) Max Minx

S.D.

Turnover culture 5.00 1.00 3.31 0.90Politics 4.13 1.25 2.80 0.62

Organizational support 5.00 1.67 3.64 0.66

Role conflict 5.00 1.00 3.14 0.78

Role ambiguity 5.00 2.67 4.08 0.54

Role overload 3.67 1.00 2.65 0.56

General satisfaction 5.00 1.00 4.03 0.67

Intrinsic satisfaction 5.00 2.56 3.99 0.48

Extrinsic satisfaction 5.00 2.00 3.76 0.56

Intention to leave 5.00 1.00 2.54 0.75

Commitment 1.00 5.00 3.98 0.73

Job alternatives 1.50 5.00 3.68 0.65

Table 3 demonstrates that organisational support has an average value at high

level of 3.64, while politics and turnover culture have average values at

medium level of 3.31 and 2.80 respectively. Stress, which consists of role

conflict, role uncertainty, and role overload, show averages of being at

different levels. Role ambiguity has an average at high level of 4.08 while role


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conflict and role overload have average values at moderate level of 3.14 and

2.65 respectively. Job satisfaction which consists of general, intrinsic and

extrinsic satisfaction all have average values at high levels of 4.03, 3.99 and

3.76 respectively. The retention of employee from management level consists

of intention to leave, commitment, and job alternatives. Commitment and job

alternatives have average values at high level of 3.94 and 3.68 respectively

while intention to leave has an average value at low level of 2.54.

CORRELATIONIt was found that correlation coefficients between every variable used in the

analysis did not have multicollinearity (r< 0.70). Independent variables which

are the components of organisational culture, stress, and job satisfaction do

affect the retention of employees from both levels from hotels in the upper

south region having a correlation between -0.49 to 0.68.

The relationship between perceived organisational culture, stress and job

satisfaction on the retention of employees at management level

Figure 1 shows that organisational culture significantly imposes negative

influence on the stress in employees at management level with coefficient of

0.43. This means stress of the employees at management level will decrease

as the organisational culture improves, such as all possible organisational

support and less politics, while the stress will increase when these employees

have role ambiguity and role overload. However, employees at management

level better perceived organisational culture from organisational support(0.95) than from politics (0.33).

Figure 1 shows that organisational culture had a significantly positive influence

on job satisfaction of employees at management level with coefficient of 0.37.

This means that job satisfaction should increase as aspects of organisational

culture such as high organisational support and less politics increases, where

employees at management level have the highest value of intrinsic satisfaction

at 0.83 with the 2nd

rank of general satisfaction at 0.78 respectively. Extrinsic

satisfaction shows less influence than other types of satisfaction.


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2010 Employment Relations Record, Vol. 10, No. 2 Page 69

Figure 1: Relationship between perceived organisational culture, stress and job satisfaction on the retention of employees

at management level

-0.45

AMBI

LOAD

INTENT

COMMIT

STRESS

JOBSAT

2=

RETENT

R2= 0.50

POLITIC

SUPPORT

GENSAT INTSAT EXTSAT

0.95

-0.43

0.37

0.35

0.78 0.83 0.71

0.39

-0.08

0.940.46

0.86

0.74

0.33


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Figure 1 shows that stress had a significantly negative influence on job

satisfaction with a coefficient of 0.45. The stress at management level was

caused more by role ambiguity (0.94) than role overload (0.46). Organisational

culture had a significantly positive influence on the retention with coefficient

of 0.35. Stress is inversely related with retention of employees at

management level but not significantly. Job satisfaction has a positiveinfluence on the retention of employees at management level with a

coefficient of 0.39 which indicates staying with the organisation providing that

they have job satisfaction. Organisational culture, job satisfaction and stress

accounts for 50 percent retention of employees at management level since the

employees at management level gave highest priority to job satisfaction at

0.39 and at a lower priority to organisational culture at 0.35 without giving and

consideration to stress (0.08) respectively.

Figure 2 shows that organisational culture has a significantly positive effect on

stress of employees at operational level with a coefficient at 0.49.

Organisational culture and stress impose a significantly positive influence on

job satisfaction of employees at operational level with a coefficient at 0.36 and

0.41 respectively. Organisational culture has significantly positive influences on

the retention of employees at operational level with a coefficient of 0.41 while

stress has a positive influence on the retention of employees at operational

level with a coefficient of 0.33.

SUMMARY

The quantitative analytical result by descriptive statistics shows that an

average value of duration for working at present hotels of 5.51 years, showing

a moderate retention by being higher than 3 years and the duration of working

after graduation of 9.64 years. The qualitative analytical results from in-depth

interviews shows that hotels did not have a policy of firing even during low

season but chose to solve the problem by other means such as leave without

pay, energy conservation measures, reducing service charge payment and

arranging extra activities such as cleaning, and exercise during free times for

their employees.

In examining the effect of perceived organisational culture on stress and job

satisfaction on the retention of employees at operational and management

level, and the stress of employees at management level organisational culture

explains up to 43% of stress influences. Stress from perceived organisational

culture also results in less job satisfaction for employees at this level. Stresscan be used in explaining 49% of job satisfaction. Employees at management

level will stay with the organisation provided that they can accept the

organisational culture, and they have high job satisfaction. Fifty percent of the


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2010 Employment Relations Record, Vol. 10, No. 2 Page 71

Figure 2: The relationship between perceived organisational culture, stress and job satisfaction on the retention of

employees at operational level

CONFLI AMBI LOAD

INTENT

COMMIT

CHOICE

STRESS

JOBSATR2

= .44

RET

TURNCUL

POLITIC

SUPPORT

GENSAT INTSAT EXTSAT

.39

-.81.

.49

.36

.41

-.84 -.87 -.87

.41

.33

.10

-.54 -.77.75

.82

-.80

.22


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retention of employees at this level can be explained by perceived

organisational culture, stress and job satisfaction. Once the results of in-

depth interviews were brought into consideration, it was found that employees

at management level would stay with the organisation provided that they had

job satisfaction and accepted organisational culture, because they felt that

they are an important member, and have self-sufficiency, loyalty, pride, and

trust in their hotels owners. In addition, the hotels growth, which is being

reflected through additional investment and continuous development, is also

an important factor for employees to stay with their hotels. Stress is not afactor for employees at this level because they like challenging work.

Stress for employees at the operational level depends on organisational culture

in which the culture can be used to explain 24% of stress. Stress from

organisational culture becomes a challenge for employees who seeksatisfaction in their job and stress can be used in explaining 44% of job

satisfaction.Employees at the operational level will stay with the organisationif they accept the organisational culture and have high job satisfaction through

organisational culture. Stress and job satisfaction can be used in explaining

52% of the retention of employees at operational level. From the in-depth

interviews, it was found that employees at the operational level gave

importance to systematic working, good working environment, pride,

acceptance of working conditions, salary, good welfare, fair leadership, a good

management team, and kind owners.DISCUSSION

Recommendations from this research are that strategic planning for the

retention of employees at operational and management levels should be

different from each other. At the operational level, emphasis should be given

to organisational culture, the most important factor influencing their retention,

while at management level emphasis should be given to job satisfaction. Stress

is not important to the retention of employees at both levels even if it does

show a higher relationship to job satisfaction than organisational culture at

both levels. Organisational culture and stress have positive influences on jobsatisfaction of employees at the operational level. It is possible that employees

at the operational level, having given importance to their leader, would try to

please their leader to reap rewards such as promotion or organisational

support and end up with job satisfaction. Similarly, Karatepe and Kilic (2007)

found organisational support makes employees satisfied in their work. Stress

has no influence on the retention of employees at operational and

management level. It is possible that hotel employees accept stress as a norm

in the business and have abilities to manage the stress.


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The findings from this study suggest that people managers should treat the

importance of organisational culture, stress and job satisfaction differently.

Therefore, for employees at the operational level, less attention needs to be

given to stress since this study has already shown that stress is not the

important factor on the retention of employees at operational level. On the

other hand, greater emphasis should be given to organisational culture which

has more influence on the retention of employees at operational level. For

employees at management level job satisfaction has a positive and the highest

influence on the retention of employees. Therefore, to keep the employees

working with the organisation, different strategies should be employed at

operational and management levels.However, the empirical variables used in this study do not include factors such

as the influence of individual character on the retention of hotel employees.Only three empirical variables, namely turnover culture, politics, and

organisational support, representing the manifest variables of organisational

culture, were included. Future study may involve other empirical variables that

represent the manifest variables of the organisational culture. It may also

involve investigating the reason why turnover culture does not appear as one

of the empirical factors representing the manifest variables of organisational

culture in hotel business in this study, even though the work of Iverson and

Deery (1997) shows that turnover culture in tourism industry is an important

variable.

REFERENCES

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Davidson, M., Guilding, C. and Timo, N. (2006). Employment, flexibility and

labour market practices of domestic and MNC chain luxury hotels andAustralia: Where has accountability gone? Hospitality Management. 25.

193-210.

Deloitte-Travel Tourism & Leisure. (2004, Sept. 9). Focus on Thailand/Hotel

industry continues to attract interest/Deloitte Report. Retrived December

17, 2006 fromhttp://www.HospitalityNet-Industry NewFocus on

Thailand Hotel Industry Continues to Attract Interest Deloitte Report.htm

Furunes, T., & Mykletun, R. J. (2005). Managers perceptions of older workers

in the hotel and restaurant industry. International Congress Series.1280,

275-280.
http://www.hospitality/http://www.hospitality/http://www.hospitality/http://www.hospitality/


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Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of

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tests, and research implications for the next millennium.Journal of

Management. 26, 463-488.

Hinkin, T.R., & Tracey, J.B., (2000). The cost of turnover.Cornell Hotel and

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Perceived Organisational Culture Stress and Job