Serena Hotels

Embed Size (px)

Citation preview

  • 8/12/2019 Serena Hotels

    1/51

    Labor Turnover Issue Faced By Serena Hotels

    Thesis Submitted to Lahore School of Economics

    By

    M. Azam Qayyum

    Section B

    For

    Award of Degree of Bachelors of Business Administration (Honors) in

    Finance

    Session: 2008 to 2012

  • 8/12/2019 Serena Hotels

    2/51

    Research Thesis

    1

    RESEARCH COMPLETION CERTIFICATE

    It is certified that M.Azam Qayyum, ID No. 08U0340 Session 2008 to 2012 has carried out and

    completed the research project entitled Labor Turnover Issue Faced by Serena Hotels under

    my supervision for requirement for the award of Degree of Bachelor of business Administration

    Honors (Finance) by Lahore School of Economics.

    Research supervisor

    (Zehra Raza)

    Lahore School of Economics

  • 8/12/2019 Serena Hotels

    3/51

    Research Thesis

    2

    TABLE OF CONTENT

    ACKNOWLEDGEMENT....................................................................................................3

    ABSTRACT .........................................................................................................................4

    CHAPTER 1: INTRODUCTION.........................................................................................5

    CHAPTER 2: LITERATURE REVIEW.............................................................................10

    CHAPTER 3: METHODOLOGY.......................................................................................22

    CHAPTER 4: RESULTS AND ANALYSIS......................................................................33

    REFERENCES....................................................................................................................45

    APPENDICES.....................................................................................................................46

    http://c/Users/Azam%20Qayyum%20Puri/Downloads/Thesis%20Title.docx%232.ACKNOWLEDGEMENT%7Coutlinehttp://c/Users/Azam%20Qayyum%20Puri/Downloads/Thesis%20Title.docx%232.ACKNOWLEDGEMENT%7Coutline
  • 8/12/2019 Serena Hotels

    4/51

    Research Thesis

    3

    ACKNOWLEDGEMENT

    I would sincerely thank and express my gratitude to all those who provided me with any kind of

    assistance and helped me in completing my thesis. I gratefully acknowledge the help of my

    supervisor, Ms. Zehra Raza, who has provided me a lot of help whenever needed. In this entire

    duration of this thesis, she has given most valuable advice and suggestions and has explained

    each and everything to me in great detail. Without her help, instructions and analysis of the

    mistakes, I would not have been able to complete this project. She made it very easy for me to

    confidently carry out my research.

    I would also thank my friends and family who have supported me during all times.

  • 8/12/2019 Serena Hotels

    5/51

  • 8/12/2019 Serena Hotels

    6/51

    Research Thesis

    5

    Chapter 1

    INTRODUCTION

    OVERVIEW

    Labor Turnover refers to the ratio of the number of employees that leave the organization

    during a particular period to the number of employees that are already in the organization in the

    same period. It is defined as the movement of the employees in and out of the business or

    organization. The employees can leave due to any reason. They can leave through

    attrition,dismissal,or resignation. In simple words, it is the rate at which the old employees are

    leaving and the new employees are taking their place. It is an important issue for every

    organization as a high turnover rate would also increase the costs for the company and would

    reduce the productivity and hence, the profitability. These days the accommodation industry is

    already suffering from high costs and low profitability due to the recession and fall in the tourism

    rate all over the world. So, the cost of labor turnover would further worsen the situation. The

    company would have to go through the selection process all over again. Also, the new

    labor/employee would take some time to adjust to the new environment and to get acclimatized

    to the organizational culture. Productivity would also suffer if skilled labors are leaving.

    The task of keeping the turnover low requires the whole process to be effective. There

    needs to be an effective management of the labors/employees so that they may not feel alienated

    with the work. Also, management should make sure that the employees are motivated and

    satisfied with their job. They should also be rewarded appropriately. There should be an effective

    communication system. If the companys staff turnover is higher than the other companies in the

    http://www.businessdictionary.com/definition/attrition.htmlhttp://www.businessdictionary.com/definition/dismissal.htmlhttp://www.businessdictionary.com/definition/dismissal.htmlhttp://www.businessdictionary.com/definition/attrition.html
  • 8/12/2019 Serena Hotels

    7/51

    Research Thesis

    6

    same industry, then it is a point of concern for the management which then has to take corrective

    actions.

    On the other hand, turnover can be beneficial for the employees. Some scholars are of the

    view that the employee turnover is an integral part of any business. It is because it increases the

    skills of the employees when they move from one organization to another. They feel that it is

    right for the employees to move in search of better employment opportunities.

    Overall, high labor turnover is an issue for any organization and it needs to take

    corrective measures to control it. It should make sure that the employees remain loyal to the

    organization and do not move to other organizations.

    BACKGROUND

    The labor turnover problem first arose when the trend of self-employment died down and

    people started to work for only one employer in the early 19thcentury. Therefore, the rate was

    first calculated at that time. Later, when the importance of agriculture declined and more and

    more firms started to employ people, the causes and implications of labor turnover were

    measured. Labor turnover increased drastically in the early part of the 19thcentury but declined

    in the 1920s. It was because of the increase in techniques used to improve relations between

    Labors and management. In 1940s and 1950s, it followed a volatile trend and is following the

    same trend till date. However, recently, the management of the large organizations has

    introduced several techniques to keep the employees satisfied with the jobs by providing them

    fringe benefits. The highly valued employees of the business are paid handsomely and they are

  • 8/12/2019 Serena Hotels

    8/51

    Research Thesis

    7

    also provided accommodation and other services. Moreover, they are paid bonuses as well.

    Organizations have identified several measures to make sure that employees are in a healthy and

    cordial relationship with the management and other employees who are on the upper or lower

    levels of hierarchy.

    EFGFFINGISOF LABOR TURNOVER AROUND THE WORLD

    This topic or issue of Staff Turnover is very important around the world. The reason is

    that in the Capitalist world, labors and employees are of utmost importance. They are the

    resources through which the final product is made. They are one of the key resources in

    generating profits for the businesses. That is the reason why the organizations provide rigorous

    training to their employees to get them equipped with the required skills so that the productivity

    can be improved. An organization spends a lot on the employee for training and other benefits.

    So, when he/she gets skilled and leaves the organization, it not only costs the firm in terms of

    expenses but also in terms of reduced output. Its importance can be judged from the fact that

    according to the studies, the cost of turnover can be up to 250 percent of the salary of the

    employee leaving the organization. These days, the competition has increased a lot. Each

    company is making a run for their money as companies are fighting for market share. Due to all

    this, the companies can pay any amount to the employees of the competitors for their services

    and expertise. Therefore, recently, the issue of labor turnover has gained much importance.

  • 8/12/2019 Serena Hotels

    9/51

    Research Thesis

    8

    IMPORTANCE OF LABOR TURNOVER TO SERENA HOTELS

    In Pakistan, Labor Turnover follows a somewhat mixed trend. As the unemployment rate

    in Pakistan is high and poverty is also increasing, so in this situation finding the job is very

    difficult for the manual labor. Therefore, when they finally get a job, even if the conditions are

    not beneficial they hold on to that job. That is why the turnover is low among the lower level

    employees. In the IT industry and other major industries where technical knowledge and skills

    are required, the demand is more. The turnover rate is 20 percent. Therefore, the employees get

    attractive offers from other companies due to which turnover increases and employee retention

    costs also increase. Labor turnover is important to Serena Hotel because staff turnover in the

    hotel industry is driven by workers, tasks, firms and markets etc. The managers need to

    understand the causes so that the policies can be devised to retain the workers. There are push

    and pull motives for the employees to leave the hotel they are already working in. Push motives

    for the employees of Serena Hotels are related to the dissatisfaction with the current job they are

    doing. On the other hand, the pull motives are the opportunities available to them to improve

    their career opportunities. There are many pull motives for the executive jobs in the hotel

    industry. The importance of employee turnover to Serena Hotels can be assessed from the

    various costs of turnover that are enumerated in the following lines.

    Initially, there is a cost of the person who fills in the position while the job is vacant.

    Secondly, there is a cost of training the employee who has left. Serena Hotel invests in internal

    training, external programs and external academic education. Serena Hotel also helps its

    employees to get different licenses to do the job effectively, For example, driving license. Not

    only this, there is also a cost of the customers that the employee is taking to the other Hotel with

  • 8/12/2019 Serena Hotels

    10/51

    Research Thesis

    9

    them. For example, when the General Manager of the Pearl Continental Hotels left the job and

    came to Serena Hotels, many customers who had links with the manager shifted to Serena

    Hotels. Therefore, it is also a cost for the hotels. Besides all these costs, there are recruitment

    costs and training costs as well.

    As mentioned above, due to the high direct and indirect costs involved in turnover in the

    Hotel industry, it is of utmost importance to the Serena Hotels too. Serena Hotels are one of the

    Leading Hotels of Pakistan and that is why the management has to maintain the image of the

    organization. It pays special emphasis on the quality of employees and how they are treated. It

    pays them effectively and slightly above the market rate. It is because the management needs to

    make sure that they do not leave the organization if they are offered more salary. Besides this,

    there is a lot of emphasis on the training of the employees.

    Research Question

    What are the causes of employee turnover and how this problem is affecting Serena

    Hotels?

  • 8/12/2019 Serena Hotels

    11/51

    Research Thesis

    10

    Chapter 2

    LITERATURE REVIEW

    The literature review will review the critical points of the current knowledge

    including substantive findings as well as theoretical and methodological contributions to the

    related topic. The main aim of this literature review is to identify the causes, effects and

    solutions of labor turnover in the hotel industry.

    Deery and Snaw (2000) conducted a research on the turnover culture in the hotel industry

    in Australia using Organizational culture as predictor variable. The objective of this research was

    to explore the concept of an organizational culture which promotes employee turnover. It drew

    on the extensive literature on both organizational culture and turnover. For this analysis both

    quantitative and qualitative research techniques were used. Initially, the methodological

    considerations centered on the use of quantitative data. For this purpose, the questionnaire was

    used. The questions were critically analyzed by the expert panel like in Delphi Method. Data

    were collected from a convenience sample of 45 hotels. Using a cluster analytic approach, nine

    distinct clusters of variables were produced. The implications for management practice in

    controlling a turnover culture are examined. The first order and the second order analysis were

    used to determine the number of dimensions underlying the constructs of turnover, culture, and

    turnover culture. The findings of the research were that theexploratory research into the

    existence of a turnover culture in the hotel industry has provided evidence that such a

    phenomenon may exist. The research provided a positive and a negative turnover culture.

  • 8/12/2019 Serena Hotels

    12/51

    Research Thesis

    11

    Zatzick, C. et al. (2003) conducted a research on the effects of racial composition on

    Voluntary turnover. The fundamental reason behind this research was to find out whether the

    racial composition has any effect on the employee/ labor turnover. Six hypotheses were

    developed. The first hypothesis stated that for minority employees, the higher the proportion of

    an employees own race in their job, the lower the probability of their turnover. Second

    hypothesis stated that for minority employee, the higher the proportion of an employees own

    race in their job, the higher the probability of their turnover. Third one was that the higher the

    proportion of other minorities in their job, the higher the probability of their turnover. Fourth

    hypothesis proposed that the level of effect of the racial proportion is not linear. It is because at

    lower levels, the correlation is high and at high level, the correlation between racial composition

    and turnover is low. Hypothesis 5 predicted that proportion of own race in one level above the

    focal employee would decrease the likelihood of turnover. Hypothesis 6 stated that the

    proportion of own race in the level above the focal employee will increase the likelihood of

    turnover. To study this, the methodology that was used was that the personnel data was collected

    from a Fortune 500 service organization which contained detailed work histories of all full-time

    employees of three years. As the focus was on a single firm, detailed structural and individual

    data was accumulated on an entire population across different business units and levels of

    hierarchy. Turnover was taken as a dependent variable and racial composition was also

    measured. Regression analysis was carried out to test the hypotheses. It was concluded from the

    results that the first hypothesis is true. If the proportion of ones own minority member increases,

    the turnover falls. It was negatively and significantly related to the turnover. However, the

    hypotheses 2 and 3 were not supported. Likelihood Ratio Test was also applied to determine the

    improvement of the fit from the proportion variables. Hypothesis 4 proved to be true as the

  • 8/12/2019 Serena Hotels

    13/51

    Research Thesis

    12

    relationship plot was a U-shaped curve. Logistic Regression Model was applied to test the

    hypothesis 5. This hypothesis was weakly supported. Hypothesis 6 was not supported. This topic

    is important because the turnover costs are high for a company especially if there are labor

    shortages. Firm suffers in terms of cost and lost productivity.

    Thoms, P. et al. (2001) carried out the research regarding the relationship between

    immediate employee turnover and employee theft in the restaurant industry. The main aim of the

    research was to analyses whether the employees who know that they are going to leave the

    organization start stealing more or not. In this regard they created 3 hypotheses. First one stated

    that the correlation between turnover and employee theft would be significant. The second

    hypothesis was more specific. It stated that if the workers knew that they are going to leave in

    two weeks time then there would be more probability of stealing. The last hypothesis was

    related to the controls in an organization. It stated that the workers are going to steal more in the

    organization which have loose controls as compared to those who have tight controls. To test

    these hypotheses, field study and laboratory study was carried out. Large Restaurant Chain was

    selected. The total numbers of employees at each chain were 40-50. Interviews and discussions

    were carried out with the employees and managers. After the data was gathered, the simple

    regression analysis was used to calculate the results. The correlation between employee theft and

    turnover was 0.47 with beta 10.25. Also, the correlation between annual sales and employee theft

    was -0.03. A t-test result shows that the number of employees do not change the findings

    calculated above. The findings of the study prove the first hypothesis true. In Study 2

    (laboratory), the sample size of 152 students was selected. Methodology that was used in this

    study was that the students were given different situations and they were asked that what they

  • 8/12/2019 Serena Hotels

    14/51

    Research Thesis

    13

    would steal if they were in that position. Demographic data was also gathered after the answers.

    Means, standard deviations and correlations were measured. ANOVA table was also used for

    testing the hypothesis. Finally, after conducting both the studies, it was concluded that immediate

    turnover is an important factor in employee theft. Also, the employees are going to steal more if

    they know that they are going.

    Davidson, H. et al. (1997)did a research on the effects of health care reforms on job

    satisfaction and voluntary turnover among hospital based nurses. The objective of this study was

    to identify and examine the effects of the modifications in hospitals on the nurses job

    satisfaction and turnover. The method that was used was the longitudinal survey of 736 hospital

    nurses. This sample was used to learn about the turnover that was caused due to the changes and

    also the job satisfaction levels at that stage. The major source of the data was survey. After

    gathering the data, different statistical models were applied, statistical tests were conducted and

    then the results were concluded. Multi-Variate analysis was also carried out which revealed that

    poor communication and a lot of workload was 2 of the most important reason of low job

    satisfaction. In conclusion, if the hospital administration carries out certain steps, then the job

    satisfaction can be improved and so the turnover would fall.

    Henry Ongori (2007) did a research regarding the employee turnover problem, its causes,

    effects/costs and its remedies. The main objective of this research was to examine the sources of

    employee turnover and suggest different types of strategies that the managers can adopt to make

    sure that the employees continue to work in the organization and increase productivity. The

    researcher mainly used secondary research to analyses the main reasons which characterize the

  • 8/12/2019 Serena Hotels

    15/51

    Research Thesis

    14

    labor turnover. The main factors that were analyzed were Job related factors like working

    environment, voluntary and involuntary turnover, organizational factors, and effects of employee

    turnover. The strategies proposed were employee participation in job design and other decision

    that are going to affect them. Also, the communication and knowledge should be passed down to

    the lower levels of employees so that they feel like they are an important part of the organization.

    Work force optimization is another important aspect. The management should make proper

    resources available for the workforce so that the work can be done and completed without any

    interruption or breakdown. Besides this, employee empowerment could also help in retaining the

    employees. So, the result of the research was that many firms are facing this turnover problem

    and these problems can be solved by following the proposed strategies. Each employee that

    leaves the job, the employer should identify the cause and should make sure that if the fault was

    on the part of the employer or the organization, then it does not happen again. Also, performance

    related pay should be introduced. By doing so, labor turnover can be reduced a great deal.

    Lam, T. et al. (2000) researched on the issue of Job Satisfaction of the Hotels of Hong

    Kong. As turnover is related to the Job satisfaction, so the main aim of the study is to examine

    the demographic characteristics of hotel employees and the level of their job satisfaction.

    Emphasis is also paid to the job variables. Employee morale is an important factor in turnover.

    Turnover causes the firm to bear additional costs like recruitment costs and lost productivity

    costs. The research measures the job satisfaction of the Hong Kong hotel employees and impact

    of demographic characteristics on job satisfaction. Research methodology that has been used is

    that the research design was descriptive and quantitative in nature. Samples were selected using

    the stratified sampling method. The data was collected from five hotels. Samples of 200 existing

  • 8/12/2019 Serena Hotels

    16/51

    Research Thesis

    15

    and 200 reedsigned employees were randomly identified. All types of questions were included in

    the questionnaire closed ended, open ended, rating and yes/no questions etc. One way Analysis

    of variance and Independent samples t-test were also used to analyze the data. The results

    concluded that more than 42.2 per cent of the employees believed that pay was one of the most

    important factors contributing to Job satisfaction. The reason was that high income level enables

    the workers to spend leisure time and also they want to save for any future contingency.

    Promotion is another important factor. Also, 35 per cent stated that supervision was not that

    much important to them. Article also concluded that the employees with low education are

    dissatisfied with their promotional path. Students who graduate from good universities feel that

    that should be given higher salary and rank as they have invested more in their education. So, if

    they are not given higher salary they would leave the job in search of better jobs. The

    management should make sure that the employees are satisfied. Management should use

    different strategies to keep them motivated like job rotation and enrichment. Also, the leadership

    style should be democratic.

    Breukelen, W. et al. (2004) conducted a research on the voluntary employee turnover.

    The research combined variables from the traditional turnover literature with the theory of

    planned behavior. The main aim of the study was to find that whether the theory of planned

    behavior provides any explanation and elaboration regarding the voluntary turnover of the

    employees. The research was done on the factors of job satisfaction, organizational commitment,

    age and tenure to find out whether these traditional variables define or explain anything about the

    voluntary labor/employee turnover. If all these factors rating are high, it means that there is high

    labor force motivation and fewer turnovers. Method that was used was longitudinal study. The

  • 8/12/2019 Serena Hotels

    17/51

    Research Thesis

    16

    sample size selected was 296. Questionnaires were given to all of them. The respondents were

    serving in the Navy. After six months, the same questionnaire was again filled by the same

    respondents and the results were compared. After collecting the data, appropriate statistical

    models were applied and the correlation between the main variables was calculated. According

    to the findings, the behavioral intentions were the best predictor of turnover. Hypothesis one

    proved to be true.

    Hom and Kinicki (2001)did a research on how dissatisfaction drives employee turnover.

    The main aim of the research was to identify the reasons and get the insight of the turnover that

    is caused by lack of job satisfaction or dissatisfaction. The methodology adopted was that the

    national survey of retail store personnel was used to identify variables like inter-role conflicts

    and job avoidance that lead to turnover. Five hypotheses were created regarding each variable.

    Hypothesis 1 was that inter-role conflict decreases job satisfaction. Hypothesis 2 was that the

    inter-role conflict increases withdrawal cognitions. Hypothesis 3 was regarding job satisfaction

    i.e.-e Job satisfaction reduces job avoidance. Hypothesis 4 stated that Job avoidance increases

    withdrawing cognitions. Hypothesis 5 predicted that Unemployment decreases withdrawal's

    expected utility and turnover. All these hypotheses were tested one after the other and

    appropriate results were obtained. Managers, salespersons and auto-mechanics were surveyed.

    The discriminant validity tests showed that all factors discriminably differed from one another.

    Diagrams were drawn from the results obtained through the application models. According to the

    results, inter-role conflict induces dissatisfaction and withdrawal cognitions. So, Hypotheses 1

    and 2 were sustained while Hypotheses 3 and 4 were upheld. Moreover, unemployment did not

    cause any change impact withdrawals expected utility. So, hypothesis 5 was not true. Therefore,

  • 8/12/2019 Serena Hotels

    18/51

    Research Thesis

    17

    the objective of the research was achieved as various reasons of how dissatisfaction causes

    turnover were obtained and tested.

    Theresa S. Cho (2005)developed the theoretical framework of involuntary executive

    turnover. The main objective of this research was to explore the causes of such turnover. Many

    researches are available regarding the lower level employees leaving the organizations. This

    research analyses the causes due to which the senior level of management or employees are

    forced to leave due to the reasons other than health or age. There is a conflict of interest between

    the managers own goals and the firms goals. So, in the organizations with strict controls,

    managers are bound to follow the objectives of the organizations but in other firms, managers

    can pursue their own goals. For analytical purposes, managerial discretion is divided into 2 parts,

    latitude of actions and longitude of actions. Latitude of objectives explain the freedom the

    managers have in achieving their personal objectives while Longitude of objectives is the range

    of strategic options available to the managers to achieve the organizations objectives. Both these

    actions interact to affect the causes and the performance consequences of involuntary executive

    turnover, as well as which executives will be forced to depart. Involuntary Executive turnover in

    different Scenarios of Managerial Discretion have been mentioned. Scenario I states low latitude

    of objectives and low latitude of actions. Scenario II states High Latitude of Objectives and low

    Latitude of Actions. Scenario III states Low latitude of Objectives and high latitude of actions.

    Finally, Scenario four states High latitude of objectives and high latitude of actions. According to

    the findings, involuntary turnover occurs due to poor organizational performance or

    environmental change in situation of low latitude of objectives and high latitude of actions. In

    situations where there is high latitude of objectives and high latitude of actions, involuntary

  • 8/12/2019 Serena Hotels

    19/51

    Research Thesis

    18

    executive turnover under achieved organizational performance occurs among the executives who

    are on the lower level of hierarchy. It is because their values and perspectives differ from top-

    management or executives. Finally, it can be concluded that the involuntary turnover is caused

    by various factors which are an amalgamation of latitude of actions and objectives.

    Lee, T. et al. (1999)did a research on the Voluntary turnover of the employees. The main

    aim of this research was to identify and understand different psychological paths that employees

    take when they are deciding on quitting the organization. Different hypotheses were created and

    tested. The sample of 229 employees was selected. The BIG 6 accounting firm had listed 6000

    employees who were leaving the organization and out of those, 245 employees were randomly

    selected and were asked to give some information. Questionnaires and surveys were used

    mainly. The results obtained were graphed and different psychological paths were identified. The

    results showed that different occupational groups choose different patterns for leaving their jobs.

    So, hypothesis 1 was proved. To test the second hypothesis (The time between the first thoughts

    of quittingand the decision to leave is not much), logistic regression models were used to make a

    comparison of the decision paths durations. The second hypothesis was upheld but the last

    hypothesis was sustained and proved to be true.

    Cottini, Kato and Nielsen (2011) conducted a research on adverse workplace conditions,

    high-involvement work practices and labor turnover. The fundamental reason behind this

    research was to identify and analyze the consequences of exposing the worker to physical

    hazards. It also outlines the effect of late working hours on the voluntary turnover. Moreover, the

    results of unsupportive boss have also been mentioned. The methodology used in this study is

    that the researchers have relied mostly on the secondary data. The data was collected from the

  • 8/12/2019 Serena Hotels

    20/51

    Research Thesis

    19

    Denmark Integrated Labor Market Database and The Danish Work Environment Cohort Study.

    Different statistical and economic models have been applied on the data. After the application

    and analysis, the researchers reached to the conclusion that those workers who are more exposed

    to the hazardous conditions are likely to leave the job more. However, if there is a strong

    communication between the labor and management, then this kind of voluntary turnover can be

    reduced.

    Ton and Huckman (2008) did a research on Managing the impact of employee turnover

    on Turnover. Their objective behind carrying out this research was to examine the impact of

    employee turnover in operating performance. For this study, the data that they collected was

    from the U.S retail stores. The time period of the data was 48 months. Again, the data is

    secondary. But, the primary research has also been used to collect the data. Some mystery

    shoppers were hired to shop in some of the stores and they marked the stores according to the

    level of service and employee conformance. After collecting the primary and secondary data,

    different statistical models were applied to analyze it. For example, finding the correlation

    between two variables and regression analysis has also been done. Findings of the study were

    that the turnover has more effect in those stores where there is less emphasis on the discipline. In

    other words, settings where performance depends on the repetition of known tasks, managers can

    reduce turnovers effect by imposing process discipline through standard operating procedures.

    Sousa and Poza (2007) did their research work on the effects of job satisfaction on labor

    turnover by gender. The objective of this research was that the whether there is any influence of

    gender in job satisfaction and ultimately in labor turnover. The methodology used in this

  • 8/12/2019 Serena Hotels

    21/51

    Research Thesis

    20

    research is that the secondary data has been collected and different models have been run on

    them. The researchers have also analyzed various longitudinal surveys. The models that have

    been used include Job Satisfaction Model, Job Turnover Model and the relationship between the

    labor turnover and job satisfaction has been determined. The results of the study show that the

    Job Satisfaction is one of the main indicators of whether the employee is going to remain in the

    organization or going to quit. Another major achievement of this research was that it was able to

    conclude that there is no apparent difference between men and women in the job quitting and job

    satisfaction behavior.

    Goodwin, Groth and Frenkel (2010) researched the relationship between emotional labor,

    job performance and turnover. The main aim of this research was to find out what are the main

    factors that employees consider while leaving the job. The methodology used in this research

    was that the data from the employees from the call centers of two large financial companies was

    collected online. The employees filled the online surveys. The subject of the survey was the

    employees use of surface and deep acting. Their responses were

    Matched with supervisors' ratings of overall job performance and organizational turnover records

    obtained 9 months later. Statistical models were applied to the data collected from primary and

    secondary sources. Results indicate that surface acting is directly related to employee turnover

    and emotional exhaustion and that the relationship between surface acting and job performance

    is indirect via employee affective delivery. Deep acting was not linked to these outcomes.

    Theoretical and practical implications are discussed from the perspective of emotional labor

    theories.

  • 8/12/2019 Serena Hotels

    22/51

    Research Thesis

    21

    Davidson, Timo and Wang (2009) carried out a research on the labor turnover cost. The

    purpose of this research was that the authors were of the view that the human resource

    management department has to face a lot of difficulties when the labor turnover increases. This

    study is aimed at providing the insights to HRM by studying extensive literature from the

    Australian accommodation sector. The methodology used was that an online survey was

    designed and conducted in four major five-star hotels in Australia. 64 human resource managers

    participated in the research. The results of this study concluded that the majority of the costs

    faced by these managers are related to the labor turnover. These costs are substantial and impact

    the profitability of hotels. That is the reason that these costs should be examined and the root

    cause of these costs should be resolved. Moreover, the level of service might get affected due to

    the increased turnover which carries the risk of loss of customers and so puts the company and

    the society as a whole, in danger.

  • 8/12/2019 Serena Hotels

    23/51

    Research Thesis

    22

    Chapter 3

    METHODOLOGY

    Research Type

    The type of the research being conducted is qualitative in nature. This type of research is

    about exploring various issues, understanding the phenomena and answering questions. The

    objective of the study is to find out the relationship between the dependent variable and several

    independent variables. The study is based on measuring the sample on research area topic which

    is Labour Turnover issue faced by Serena hotels. This study would apply various statistical

    models on the data and identify the major causes and the solutions of labour turnover.

    Data and Research Period

    Data collected is both primary and secondary. For primary data, questionnaires would be

    given out and interviews of employees of Serena Hotels would be conducted. The sample size

    for the Questionnaire is 100 employees. Secondary data has been collected from the literature of

    the labour turnover from around the world. However, main emphasis would be put on the

    primary data as it would be more accurate. It is because the secondary data collected includes the

    data from around the world and not just Pakistan, but the primary data is collected from the

    sample directly concerning the research. So, it is more effective and more emphasis would be put

    on it. The research Period is from the year 2011 to 2012.

  • 8/12/2019 Serena Hotels

    24/51

    Research Thesis

    23

    Sources of Data

    For the research, data was obtained from several sources. These included the literatures

    from Jstor, Science Direct and the annual reports of Serena Hotels as well as the questionnaires

    and interviews.

    Population, Working population and Planned Sample

    Population is the total number of employees working in the accommodation/ Hotel

    industry in Pakistan. The working population includes only the employees of Serena Hotels.

    Planned sample is 100 employees of Serena Hotels.

    Research Hypothesis

    1. Ho: There is significance relationship between job satisfaction and the employee/labour

    turnover

    H1: There is no significant relationship between job satisfaction and employee/labour

    turnover.

    2. Ho: There is significant relationship between job rewards and employee/labour turnover.

    H1: There is no significant relationship between job rewards and employee/labour

    turnover.

    3. Ho: There is direct relationship between high job expectations and employee/ labour

    turnover.

    H1: There is indirect relationship between high job satisfaction and employee/ labour

    turnover.

  • 8/12/2019 Serena Hotels

    25/51

    Research Thesis

    24

    4. Ho: There is positive relationship between communication deficiency and employee/

    labour turnover.

    H1: There is negative relationship between communication deficiency and

    employee/labour turnover.

    5. Ho: With the increase in workload, number of employees leaving the organization

    increases

    H1: With the decrease in workload, number of employees leaving the organization

    increases

    6. Ho: There is a significant relationship between socialization difficulties and

    employee/labour turnover

    H1: There is no significant relationship between socialization difficulties and employee/

    labour turnover.

    7. Ho: There is a positive relationship between organizational stability and employee/

    labour turnover.

    H1: There is a negative relationship between organizational stability and employee/

    labour turnover.

    Techniques

    After collecting the entire data through questionnaires and other means, cross tabulation

    test will be conducted to on the data. Then the results obtained by applying it would be analyzed

    to find out about the dependent and independent variables and how much are they related and

    whether they are significant or not.

  • 8/12/2019 Serena Hotels

    26/51

    Research Thesis

    25

    Data Analysis

    To analyze the data, SPSS software would be used. In this, Cross-Tabulation would be

    used to find out the relationship between the dependent and several independent variables.

    Besides this, the various graphical methods would also be applied for the analysis purposes.

    Data Interpretation

    The results obtained from SSPS will be compiled. To find out the trend over a period of

    time, different graphs and tables would be utilized.

  • 8/12/2019 Serena Hotels

    27/51

    Research Thesis

    26

    THEORETICAL FRAMEWORK

    Unequal Racial

    Distribution Organizational

    Stability

    JobDevelopment of Skills

    Workload

    Socialisation

    difficulties

    AgeProfit

    margins

    Job Rewards

    Job

    Expectations

    Organizational

    CommitmentEMPLOYEE/

    LABOR TURNOVEREmployee

    Theft

    Resource/communication

    deficienc

    Tenure

  • 8/12/2019 Serena Hotels

    28/51

    Research Thesis

    27

    OPERATIONAL DEFINITIONS

    Unequal Racial Distribution

    Unequal racial distribution means that the ration of employees from different races is not

    the same in any measurable aspect, such as extent or quantity.

    (Christopher D. Zatzick, Marta M. Elvira and Lisa E. Cohen. 2003.When Is Better? The Effects

    of Racial Composition on Voluntary Turnover, Organization Science, Vol. 14, No. 5 pp. 483-

    496.)

    Job Satisfaction

    It describes how content anindividual is with his /her job. The happier people are within

    their job, the more satisfied they are said to be.

    (Margaret A. Deery and Robin N. Shaw .1997. An exploratory analysis of turnover culture in

    the hotel industry in Australia,Int. J. Hospitality Management,Vol. 16 No. 4, pp. 375-392)

    http://en.wikipedia.org/wiki/Individualhttp://en.wikipedia.org/wiki/Individual
  • 8/12/2019 Serena Hotels

    29/51

    Research Thesis

    28

    Job Expectations

    Job expectation is the prediction or hope of a new employee with the new job that he/she

    has got. If the new job is according to the expectation of the employee, then he/she would be

    satisfied, otherwise, problems would occur and so productivity would fall which would lead to

    voluntary or involuntary turnover.

    ( Harriett Davidson, Patricia H. Folcarelli, Sybil Crawford, Laura J. Duprat and Joyce C.

    Clifford. 1997. The Effects of Health Care Reforms on Job Satisfaction and Voluntary Turnover

    among Hospital-Based Nurses,Medical Care, Vol. 35, pp. 634-645.)

    Job Rewards

    Job rewards are the returns that employees get in return to doing a job. Rewards can be

    monetary and non-monetary. When high performers are insufficiently rewarded, they quit. If

    jobs provide adequate financial incentives the more likely employees remain with organization

    and vice versa.

    (Henry Ongori 2007. A review of the literature on employee turnover,African Journal of

    Business Management, pp. 049-054.)

  • 8/12/2019 Serena Hotels

    30/51

    Research Thesis

    29

    Communication Deficiency

    Not enough information provided to the employees. Those Organizations where the

    problems of communication exist need to take corrective steps.

    Peg Thoms, Paula Wolper, Kimberly S. Scott and Dave Jones 2001. The Relationship between

    Immediate Turnover and Employee Theft in the Restaurant Industry,Journal of Business and

    Psychology, Vol. 15, pp. 561-577.

    Workload

    Amount of work that the employee is expected to complete within a given time period.

    Multivariate analysis indicated that the most important determinants of low satisfaction were

    poor instrumental communication within the organization and too great a workload.

    (Henry Ongori 2007. A review of the literature on employee turnover,African Journal of

    Business Management, pp. 049-054)

    Profit Margin

    It is calculated by taking the percentage of net income against sales. It is expressed in

    percentage. The higher it is the better.

  • 8/12/2019 Serena Hotels

    31/51

    Research Thesis

    30

    (Terry Lam, Hanqin Zhang and Tom Baum 2000. An investigation of employees' job

    satisfaction: the case of hotels in Hong Kong,Tourism Management, Vol. 22, pp. 157-165.)

    Employee Theft

    Employee theft is a common and serious problem in business and, particularly, in the

    restaurant industry (Hawkins, 1984). Estimates of employee theft range as high as $200 billion

    annually. Employee theft can range from petty theft, or pilfering, to grand theft, stealing items

    over $250 (Smigei & Ross, 1970). Pilferage is more prevalent and its impact can be devastating

    (Lipman & McGraw, 1988). Slora (1989) found that 62% of fast-food restaurant employees

    admitted to cash or property theft.

    ( Peg Thoms, Paula Wolper, Kimberly S. Scott and Dave Jones 2001. The Relationship between

    Immediate Turnover and Employee Theft in the Restaurant Industry,Journal of Business and

    Psychology, Vol. 15, pp. 561-577. )

    Development of Skills

    Development of Skills is referred to as improvement in the skill level of employees as

    they become more experienced. Bowey argues that the mobility facilitates skill acquisition for

    employees. Riley (1980) argues that labor mobility is an important factor in the development of

    skills and that turnover is encouraged by the presence of external labor and product markets.

  • 8/12/2019 Serena Hotels

    32/51

    Research Thesis

    31

    ( Wim van Breukelen, Ren van der Vlist and Herman Steensma 2004. Voluntary Employee

    Turnover: Combining Variables from the 'Traditional' Turnover Literature with the Theory of

    Planned Behavior,Journal of Organizational Behavior, Vol. 25, No. 7 ,pp. 893-914. )

    Socialization Difficulties

    Socialization difficulties refer to the problems faced by the employees in an organization

    to meet and become friends with the other new and existing employees. There are hurdles in the

    process of inheriting and disseminating norms, customs and ideologies of an organization.

    (Wei Shen and Theresa S. Cho. 2005. Exploring Involuntary Executive Turnover through a

    Managerial Discretion Framework, The Academy of Management Review, Vol. 30, pp. 843-

    854.)

    Organizational Stability

    It consists of two factors, driving forces and restraining factors. Organizational instability

    has been shown to have a high degree of high turnover. Indications are that employees are more

    likely to stay when there is a predictable work environment and vice versa Good local labor

    market conditions improve organizational stability.

    ( Thomas W. Lee, Terence R. Mitchell, Brooks C. Holtom, Linda S. McDaniel and John W.

    Hill 1999. The Unfolding Model of Voluntary Turnover: A Replication and Extension, The

    Academy of Management Journal, Vol. 42, pp. 450-462.)

  • 8/12/2019 Serena Hotels

    33/51

    Research Thesis

    32

    Tenure

    Tenure is the time-period that an employee holds a job.

    Thomas W. Lee, Terence R. Mitchell, Brooks C. Holtom, Linda S. McDaniel and John W.

    Hill 1999. The Unfolding Model of Voluntary Turnover: A Replication and Extension, The

    Academy of Management Journal, Vol. 42, pp. 450-462.

    Organizational Commitment

    It means that how sincere and how committed an employee is to the organization.

    Margaret A. Deery and Robin N. Shaw .1997. An exploratory analysis of turnover culture in the

    hotel industry in Australia,Int. J. Hospitality Management,Vol. 16 No. 4, pp. 375-392

  • 8/12/2019 Serena Hotels

    34/51

    Research Thesis

    33

    Chapter 4

    RESULTS

    CROSS-TABULATIONS

    Table 1: Cross Tabulation of Job Satisfaction and Employee turnover.

    Do you think that lack of Job Satisfaction is the major reason of employee turnover?*Job

    satisfaction is the only objective that the employees want to achieve. Do you agree?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Turnover * Job

    Satisfaction50 100.0% 0 .0% 50 100.0%

    Employee Turnover * Job Satisfaction Cross tabulation

    Count

    Job Satisfaction Total

    1.00 2.00 4.00 5.00 1.00

    Turnover 2.00 2 2 0 0 4

    3.00 0 1 4 3 8

    4.00 0 4 27 4 35

    5.00 0 0 3 0 3Total 2 7 34 7 50

  • 8/12/2019 Serena Hotels

    35/51

    Research Thesis

    34

    Ho: There is significant relationship between job satisfaction and the employee/labor turnover

    H1: There is no significant relationship between job satisfaction and employee/labor turnover.

    According to the cross tabulation results, 27 respondents agree to both the

    statements/questions that lack of Job Satisfaction is the major reason of employee turnover and

    Job satisfaction is the only objective that the employees want to achieve. 4 of them strongly

    agree with the fact that job satisfaction is the only objective that employees want to achieve but

    only agree that job satisfaction is the major reason of employee turnover. The total results are

    such that 35 respondents agree that job satisfaction is the major reason of employee turnover

    while 34 agree to the second statement which reflects that we accept our null hypothesis which is

    that there is a significant relationship between our dependent (Employee Turnover) and

    independent variable (Job Satisfaction) while we reject our alternate hypothesis.

    Table 2: Jobs Rewards and Employee turnover cross-tabulation analysis

    Do you think that higher job rewards lowers the employee turnover?* Job rewards should not

    only be confined to monetary rewards, but these should also include non-monetary rewards. Do

    you agree?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Employee Turnover *

    Job Rewards50 100.0% 0 .0% 50 100.0%

  • 8/12/2019 Serena Hotels

    36/51

    Research Thesis

    35

    Employee Turnover * Job Rewards Cross tabulation

    Count

    Job Rewards Total

    2.00 3.00 4.00 5.00 2.00

    Turnover 2.00 0 0 2 0 2

    3.00 1 0 16 0 17

    4.00 2 5 19 2 28

    5.00 0 1 0 2 3

    Total 3 6 37 4 50

    1. Ho: There is significant relationship between job rewards and employee/labour turnover.

    H1: There is no significant relationship between job rewards and employee/labour

    turnover.

    There are 13 respondents who strongly agree that higher job rewards lower employee turnover

    and these same respondents also agree that Job rewards should not only be confined to monetary

    rewards, but these should also include non-monetary rewards. In Total, the trend is more towards

    the agreeing side; therefore, we accept the null hypothesis and reject the alternate. It reveals that

    there is a significant relationship between employee/labor turnover and job rewards.

  • 8/12/2019 Serena Hotels

    37/51

    Research Thesis

    36

    Table 3: Job Expectations and Employee turnover cross-tabulation analysis

    Employee/ Labor turnover is high because many employees expect much more from the

    job and in reality, their expectations are not met. Do you agree?* Is it true that job expectations

    of those individuals are high who have studied in good universities and think that it is the time to

    get back the money spent on expensive education?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Turnover * Job

    Expectation50 100.0% 0 .0% 50 100.0%

    Employee Turnover * Job Expectation Cross tabulation

    CountJob Expectation Total

    3.00 4.00 5.00 3.00

    Turnover 2.00 0 4 0 4

    3.00 2 9 0 11

    4.00 4 20 3 27

    5.00 0 4 4 8

    Total 6 37 7 50

    Ho: There is direct relationship between high job expectations and employee/ labor turnover.

    H1: There is indirect relationship between high job satisfaction and employee/ labor turnover.

  • 8/12/2019 Serena Hotels

    38/51

    Research Thesis

    37

    According to the cross-tab analysis, 20 respondents agree to both the questions and 4

    people strongly agree to the statements. Therefore, the trend is more towards the agreeing side.

    Inaggregate, 27 respondents agree that Employee/ Laborturnover is high because many employees

    expect much more from the job and in reality, their expectations are not met.On the other hand, 37

    people agree thatjob expectations of those individuals are high who have studied in good

    universities and think that it is the time to get back the money spent on expensive education. The

    results lead to the conclusion that we accept our null hypothesis which means that there is a direct

    relationship between job expectations and employee turnover. Hence, we reject our alternate hypothesis.

    Table 4: Communication Deficiency and Employee turnover cross-tabulation analysis

    Do you agree that many employees leave the organization because the top management

    does not communicate with them more often?* Do you feel that employers are solely responsible

    for developing a good communication structure in the organization?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Turnover *Communication

    Deficiency

    50 100.0% 0 .0% 50 100.0%

  • 8/12/2019 Serena Hotels

    39/51

    Research Thesis

    38

    Employee Turnover * Communication Deficiency Cross tabulation

    Count

    Communication Deficiency Total

    2.00 3.00 4.00 5.00 2.00

    Turnover 1.00 0 0 3 0 3

    2.00 0 0 0 4 4

    3.00 4 2 4 1 11

    4.00 1 1 9 3 14

    5.00 1 0 12 5 18

    Total 6 3 28 13 50

    Ho: There is positive relationship between communication deficiency and employee/ labor

    turnover.

    H1: There is negative relationship between communication deficiency and employee/labor

    turnover.

    The answers that respondents gave to this question varied from disagree to strongly

    agree. Out of all the respondents, 12 people strongly agreed that employees leave the

    organization because the top management does not communicate with them more often. These

    same people only agreed to the fact that employers are solely responsible for developing a good

    communication structure in the organization. On the other hand, 9 people agreed to both the

    statements. In total, 18 people strongly agreed with the dependent variable statement while 28

    people agreed to the independent variable (communication deficiency) statement. Therefore, we

    accept our null hypothesis and reject out alternate hypothesis. It proves that there is a positive

    relationship between communication deficiency and employee/ labor turnover.

  • 8/12/2019 Serena Hotels

    40/51

    Research Thesis

    39

    Table 5: Work Load and Employee turnover cross-tabulation analysis

    Do you agree that high workload causes the employees to leave the job and find employment

    somewhere else?* Less workload gives workers free time. So, it makes the workers engage in

    other unproductive activities that adversely affect the whole organization. Is it true?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Turnover * Work Load 50 100.0% 0 .0% 50 100.0%

    Turnover * Work Load Cross tabulation

    Count

    Work Load Total

    1.00 2.00 3.00 4.00 5.00 1.00

    Turnover 1.00 0 3 4 1 0 82.00 0 0 4 0 0 4

    3.00 0 10 0 4 0 14

    4.00 2 7 4 5 3 21

    5.00 0 0 1 2 0 3

    Total 2 20 13 12 3 50

    Ho: With the increase in workload, number of employees leaving the organization increases

    H1: With the decrease in workload, number of employees leaving the organization increases

    According to the cross-tab analysis, the highest frequency of an answer is 10. These 10

    respondents disagree that less workload gives workers free time and makes the workers engage

  • 8/12/2019 Serena Hotels

    41/51

    Research Thesis

    40

    in other unproductive activities that adversely affect the whole organization. While these same

    10 people are neutral on the statement that high workload causes the employees to leave the job

    and find employment somewhere else. Out of the total respondents, 21 agree that high workload

    causes employee turnover while 20 disagree the independent variable statement. Therefore, we

    accept the null hypothesis which states that when the workload increases, the number of

    employees leaving the organisation also increases.

    Table 6: Socialization Difficulties and Employee turnover cross-tabulation analysis

    Do you feel that many employees leave the job because they are unable to make friends and their

    esteem needs are not fulfilled?* Do you think that the main reason of socialization difficulties

    that employees face is that different employees of different races or religions are not treated

    properly?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Turnover * Socialization

    Difficulties50 100.0% 0 .0% 50 100.0%

  • 8/12/2019 Serena Hotels

    42/51

    Research Thesis

    41

    Employee Turnover * Socialization Difficulties Cross tabulation

    Count

    Socialization Difficulties Total

    1.00 2.00 3.00 4.00 5.00 1.00

    Turnover 2.00 0 0 11 0 1 12

    3.00 2 2 2 10 1 17

    4.00 0 0 13 0 3 16

    5.00 0 0 2 3 0 5

    Total 2 2 28 13 5 50

    Ho: There is a significant relationship between socialization difficulties and

    employee/labour turnover

    H1: There is no significant relationship between socialization difficulties and employee/

    labour turnover.

    The results of the cross-tabulation of the two variables are such that 13 respondents agree

    that many employees leave the job because they are unable to make friends and their esteem

    needs are not fulfilled and these same people are neutral on the statement that the main reason of

    socialization difficulties that employees face is that different employees of different races or

    religions are not treated properly. In total, 16 people agree to the turnover statement while 28

    people are neutral on the socialization difficulties statement. Therefore, it proves that the

    employees who have filled out the questionnaires feel that socialization difficulties cause

    employee turnover. Therefore, it proves that our null hypothesis is true. There is a significant

    relationship between socialization difficulties and employee/labor turnover.

  • 8/12/2019 Serena Hotels

    43/51

    Research Thesis

    42

    Table 7: Organizational Stability and Employee turnover cross-tabulation analysis

    Employees like to work in organizations which are stable. Otherwise employees/ Labor turnover

    increases. Do you agree?* Do you agree that organizational stability increases Organizational

    Commitment?

    Case Processing Summary

    Cases

    Valid Missing Total

    N Percent N Percent N Percent

    Turnover *

    Organizational

    Stability

    50 100.0% 0 .0% 50 100.0%

    Employee Turnover * Organizational Stability Cross tabulation

    Count

    Organizational Stability Total

    2.00 3.00 4.00 5.00 2.00

    Turnover 2.00 0 0 5 0 5

    3.00 0 0 2 0 2

    4.00 1 21 0 3 25

    5.00 0 0 10 8 18

    Total 1 21 17 11 50

    Ho: There is a positive relationship between organizational stability and employee/ labour

    turnover.

    H1: There is a negative relationship between organizational stability and employee/ labour

    turnover.

  • 8/12/2019 Serena Hotels

    44/51

    Research Thesis

    43

    The cross-tabulation analysis shows that there are 21 respondents who agree with the

    statement that Employees like to work in organizations which are stable. Otherwise employees/

    Labor turnover increases. These same employees are neutral on the statement that organizational

    stability increases Organizational Commitment. In aggregate, 25 respondents agree that turnover

    in increased when organizations suffer while 21 respondents disagree that organizational stability

    increases Organizational Commitment. So, it proves that our null hypothesis is true I-e there is a

    positive relationship between organizational stability and employee/ labor turnover.

    CONCLUSION

    The aim of the study was to find out the causes and major factors affecting the

    labor/employee turnover of Serena Hotels. Labor turnover is an important issue faced by many

    companies recently. Serena is also facing this problem, so this research is directed towards the

    Accommodation industry on a wider scale. However, the analysis has been done only on one

    hotel. The variables were selected by reviewing the literature on the similar topics. The literature

    was obtained from various sources and by studying the literature, various factors were

    highlighted. These factors pointed out were Development of skills, Unequal racial distribution,

    Job satisfaction, Organizational stability, Organizational commitment, Socialization difficulties,

    Age, Profit margins of the hotel, Workload, tenure, Communication deficiency, Job rewards,

    Employee theft and Job Expectations. After the identification of the factors, these variables were

    short-listed and only the most important ones were selected for further analysis.

    To carry out the research, both Primary and Secondary research was carried out. The

    variables that were extracted from the Secondary research were then used to design the

  • 8/12/2019 Serena Hotels

    45/51

    Research Thesis

    44

    questionnaires. The Questionnaire was designed such that there were three questions regarding

    one variable. The rationale behind this was that three questions regarding one variable would

    give a clear picture of the respondents point of view. The sample size selected was 50 and all of

    the respondents were the employees of the Serena Hotel, Faisalabad.

    Hence, the methodology used included questionnaires which were filled out from the

    employees of Serena Hotel. After the questionnaires were filled, the coding of the questionnaires

    was completed and then the answers were analyzed by using the SPSS software. The cross-

    tabulations were run for all the questions that were included in the questionnaires. The

    hypotheses were created for every section.

    The cross-tab analysis showed that almost all the factors were important while job

    rewards and job satisfaction were most important ones. The answers to other variables varied a

    great deal. Therefore, the entire hypotheses were accepted. The hypotheses created were of the

    factors enumerated in the following lines, Job satisfaction, Job rewards, and Job expectations,

    Communication Deficiency, Work Load, Socialization Difficulties and Organizational

    Difficulties. The results showed that all these factors had a significant relationship with the

    employee/ labor turnover of the Serena hotels.

  • 8/12/2019 Serena Hotels

    46/51

    Research Thesis

    45

    BIBLIOGRAPHY

    Deery, M. A & Shaw, R. N. (2000). An exploratory analysis of turnover culture in the hotel

    Industry in Australia.Int. J. Hospitality Management, 16, 375-392.

    Zatzick, C. D., Elvira, M. M., & Cohen L. E. (2003). When Is Better? The Effects of Racial

    Composition on Voluntary Turnover. Organization Science, 14, 483-496.

    Davidson, H., Folcarelli, P. H, Crawford, S., Duprat, L. J., & Clifford, J. C. (1997). The Effects

    of Health Care Reforms on Job Satisfaction and Voluntary Turnover among Hospital-Based

    Nurses,Medical Care, 35. 634-645.

    Ongori, H. (2007). A review of the literature on employee turnover.African Journal of BusinessManagement, 3, 049-054.

    Thoms, P., Wolper, P., Kimberly, S., & Jones, D. (2001). The Relationship between ImmediateTurnover and Employee Theft in the Restaurant Industry. Journal of Business and Psychology,15, 561-577.

    Lam, T., Zhang, H., & Baum, T. (2000). An investigation of employees' job satisfaction: the caseof hotels in Hong Kong. Tourism Management, 22, 157-165.

    Breukelen, W. V., Vlist, R. V., & Steensma, H. (2004). Voluntary Employee Turnover:Combining Variables from the 'Traditional' Turnover Literature with the Theory of PlannedBehavior.Journal of Organizational Behavior, 25, 893-914.

    Shen, W., & Cho, T. S., (2005). Exploring Involuntary Executive Turnover through a ManagerialDiscretion Framework. The Academy of Management Review,30, 843-854.

    Lee, T. W., Mitchell, T. R., Holtom, B. C, McDanie, l L. S & Hill, J. W (1999). The UnfoldingModel of Voluntary Turnover: A Replication and Extension. The Academy of Management Journal, 42,450-462.

    Hom, P. W., & Kinicki, A. J. (2001). Towards a Greater Understanding of How DissatisfactionDrives Employee Turnover. The Academy of Management Journal, 44, 975-987.

    Cottini, E., Kato, T., & Nielsen, N. W. (2011). Adverse workplace conditions, high-involvementwork practices and labor turnover: Evidence from Danish linked employeremployee data.Canadian Journal of Economics, 29, 126S129.

    Ton, Z., & Huckman, R. S. (2008). Managing the Impact of Employee Turnover onPerformance: The Role of Process Conformance. Organization Science, 19, 56-68.

  • 8/12/2019 Serena Hotels

    47/51

    Research Thesis

    46

    Poza, A. S., & Poza, A. A. S. (2007). The effect of job satisfaction on labor turnoverBy gender: An analysis for Switzerland. Socio-Economics, 36, 895913.

    Goodwin, R. E., Groth, M., & Frenkel, S. J. (2010). Relationships between emotional labor, jobperformance, and turnover. Vocational Behavior, 79, 538-548.

    Davidson, M. C. G., Timo, N., & Wang, Y. (2009). How much does labor turnoverCost?International Journal of Contemporary Hospitality Management, 22, 451-466.

  • 8/12/2019 Serena Hotels

    48/51

    Research Thesis

    47

    APPENDICES

    Questionnaire

    Name:Age:

    City:

    Position in the Organisation:

    Section 1: Job Satisfaction

    Q1) Do you think that lack of Job Satisfaction is the major reason of employee turnover?

    1 2 3 4 5strongly disagree dis-agree neutral agree strongly agree

    Q2) Job satisfaction is the only objective that the employees want to achieve. Do you agree?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q3). If given a choice between high salary and Job Satisfaction, employees would choose high

    salary.

    1 2 3 4 5strongly disagree dis-agree neutral agree strongly agree

    Section 2: Job Rewards

    Q4) Do you think that higher job rewards lowers the employee turnover?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q5) Job rewards should not only be confined to monetary rewards, but these should also include

    non-monetary rewards. Do you agree?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

  • 8/12/2019 Serena Hotels

    49/51

    Research Thesis

    48

    Q6). Do you feel that job rewards structure of Serena Hotels needs improvement as many

    undeserving employees are getting high salaries?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Section 3: Job Expectations

    Q7). Employee/ Labour turnover is high because many employees expect much more from the

    job and in reality, their expectations are not met. Do you agree?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q8). Is it true that job expectations of those individuals are high who have studied in good

    universities and think that it is the time to get back the money spent on expensive education?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q9). Those with low Job Expectations become more successful than those with higher job

    expectations. Is it true?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Section 4: Communication Deficiency

    Q10). Do you agree that many employees leave the organisation because the top management

    does not communicate with them more often?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q11). Do you feel that employers are solely responsible for developing a good communication

    structure in the organisation?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

  • 8/12/2019 Serena Hotels

    50/51

    Research Thesis

    49

    Q12). Good communication increases motivation and job satisfaction, do you agree?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Section 5: Work Load

    Q13). Do you agree that high workload causes the employees to leave the job and find

    employment somewhere else?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q14). Less workload gives workers free time. So, it makes the workers engage in other

    unproductive activities that adversely affect the whole organisation. It is true?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q15). Workload enables the employees to manage things more effectively and handle the

    pressure. Do you agree that all employees like to learn new behaviours or they are content with

    the routine tasks?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Section 6: Socialization Difficulties

    Q16). Do you feel that many employees leave the job because they are unable to make friends

    and their esteem needs are not fulfilled?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q17). Do you think that the main reason of socialization difficulties that employees face is that

    different employees of different races or religions are not treated properly?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

  • 8/12/2019 Serena Hotels

    51/51

    Research Thesis

    Q18). Employees with powerful references are given a special treatment which enables them to

    make friends and socialize easily?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Section 7: Organizational Stability

    Q19). Employees like to work in organizations which are stable. Otherwise employees/ Labour

    turnover increases. Do you agree?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q20). Do you agree that organizational stability increases Organizational Commitment?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree

    Q21). Do you feel that employees are more likely to stay when there is a predictable work

    environment?

    1 2 3 4 5

    strongly disagree dis-agree neutral agree strongly agree