Organizational Commitment in Hotel Industry

CHAPTER 1 INTRODUCTION 1.0 Introduction

This is our final thesis report as the partial fulfillment of the degree of Bachelors of Business Administration from Army Public College of Management and Sciences. We have conducted a research on the level of organizational commitment of the middle and senior management of the hotel industry of Pakistan. For the purpose of research we have selected four independent variables namely: job characteristics, supervisor support, career opportunities and work life policies and we have studied the impact of all these independent variables on the organizational commitment as the dependent variable. Organizational commitment and all the independent variables are discussed in detail below.

1.1

Organizational commitment

The psychological attachment felt by the person for the organization it reflects the degree to which the individual internalizes or adopts characteristics or perspectives of the organization.(O Rielly and Chatmann, 1986:493)A psychological state that binds the individual to the organization(Allen and Meyer, 1990:14) A bond linking of the individual to the organization(Matieu and Zajac, 1990:171) Commitment is viewed as a partisan, affective attachment to the goals and values of the organization and to ones role in relation to the goals and values for its own sake apart from its purely instrumental worth.(Buchanan II, 1974)

1.2
1.2.1

Variables

Job characteristics

A job design model that relates five core job dimensions to three psychological states and several personal and organizational consequences. 1. Skill variety is the degree to which the job requires employees to use different skills and talents to complete a variety of work activities.

Organizational Commitment in Hotel Industry 2. Task identity is the degree to which a job requires completion of a whole or identifiable piece of work. 3. Task significance is the degree to which the job has the special impact on the organization or larger society. 4. Autonomy is the degree to which the job gives employees, the freedom, independence, and discretion to schedule their work and determine the procedure to be used to complete the work. 5. Job feedback is the degree to which the employees can tell how well they are doing based on the direct sensory information from the job itself.(McShane and Glinow, 2000)

1.2.2

Work family policies

Work/ life initiatives help the employees to balance their work and non- work roles by providing a more flexible workplace for them.(McShane and Glinow, 2000) The relationship between an individuals work life and personal l work family policy. These policies include: 1. Flexible work time 2. Job sharing 3. Telecommuting 4. Personal leave programs 5. Child care facilities etc.(Kreitner and Kinicki, 2001) life is known as the

1.2.3

Supervisor support

Showing concern for the well being and needs of employees, being friendly and approachable and treating workers as equals.(Krietner and Kinicki, 2001) This behavior provides psychological support for subordinates. The leader is friendly and approachable, makes the work more pleasant, treat employees with equal respect and shows concern for the status, needs and well being of the employees. Shortly, he is a people oriented supervisor.(McShane and Glinow, 2000) 2

Organizational Commitment in Hotel Industry

1.2.4

Career Opportunities

Career opportunities mean opportunities to grow and develop.(Krietner and Kinicki, 2001) Career is the series of stages passed to achieve a certain position and the opportunities availed through to a particular destination are called career opportunities.(McShane and Glinow, 2000)

1.3

Broad Problem Area/Background

Organizational commitment is the collection of feelings and beliefs that people have about the hotel sector as a whole. Workers are more likely to be committed to their hotels when such organizations are socially responsible and demonstrate that they are committed to their workers. Workers who are committed to their organizations are less likely to quit and maybe more likely to perform organizational citizenship behavior (OCB). Organizational commitment is highly related to OCB which is above and beyond the call of duty. Organizational commitment towards the hotel sector is the psychological attachment of an employee to the hotel he works in. In todays business environment, it is imperative that hotel sector like all the other sectors of business learn to attract, motivate and retain the key talent needed to meet the aggressive business goals. A committed workforce is the hallmark of a successful hotel. Committed employees are more productive and work with a focus on quality to increase customer satisfaction and the profitability of the hotel. Quality workforce is required to be retained within the hotel sector as well, like all the other sectors of business and in order to ensure quality workforce retention the hotel should look after the interests of its employees. They should be offered with ever new incentives to attract and retain desired work force, as work force of desired quality is the one that ensures success in the long run. So, hotels should also pay a special attention and interest towards their employees. Loyal employees really are a big force but efforts are needed to attain their loyalty. These efforts include many things e.g. supportive supervisor, growth

Organizational Commitment in Hotel Industry opportunities, balance between work and life and a flexible working environment. The problem lies in the fact that many hotels are unable to produce loyal employees till now. Employees always look for a better opportunity and as soon as they get it they like to grab it. Usually the employees are concerned about their own careers rather than their organizations. If the organizations take a step forward to look after the interests of their employees by showing concern, only then the employees consider it their duty to look after the interests of their organizations. Quite often it is noticed that employees dont have a good image of the hotel sector as for as career growth opportunities are concerned. According to many researchers belief employees have this feeling that career opportunities outside the hotel sector are great and not so within. So, this perception of the employees and people in general are needed to be changed. Although, hotel sector is doing well in some other areas that help to attract and retain work force but career is one of the very important factors that are needed to be considered by this sector of the market. This is necessary to change the common perception currently prevailing and also to attract and retain some career oriented people towards this sector too. As, generally the people are compelled to shift from here due to their career growth concerns, they feel that there is not much scope and variety available in this sector of business. When the organizations in the hotel sector will start to think about their employees benefit, only then the employees feel that they owe some thing to their organizations and that they should return it back what ever they have attained from their organizations. So, by now we can very well sense the reality that it is a give and take process. Whenever the employees feel that they are valued by their organizations they tend to value it too and vice versa. Considering this reality some of the organizations in this hotel sectors are also paying due attention towards their career needs of the employees by providing them different types of training and by grooming their employees but still this sector is lagging behind many others the reason why people shift in search of better opportunities available in other sector. In other words generally the hotel sector is not well known yet about the career facilities it provides for its employees. These areas are certainly being considered now a days to survive as well as to earn a good name in todays competitive world.

Organizational Commitment in Hotel Industry

Another area of the hotel sector which is not duely attended and unable to appeal the employees of the hotel sector are their job characteristics. Employees in the hotel sector usually do not find the characteristics of their job interesting. They also feel that there is not much margin of innovation and creativity in their jobs rather, the jobs in the hotel sector are likely to be more monotonous and repetitive. So, when the employees do not find any sort of challenge in their job they often get bored and frustrated. Due to this image about the job characteristics of the hotel people have started to believe that working in hotel is typical, hectic and boring. This perception is needed to be dealt with quickly if the hotel sector wants the employee commitment. Although the hotel sector knows the importance of commitment and are also making lots of efforts in ensuring it, but unfortunately they are not considering the various aspects of commitment, not knowing that which ever area is being ignored by them accidentally or intentionally, they are leaving behind a loop hole for the other sectors of business to dominate upon them. In todays competitive environment where ever you lack you lose so, the aim should be to cover all the probable aspects of commitment to ensure it truly to the hotel sector and no loop hole should be left what so ever for the other sectors to dominate. The success of the hotel sectors future business strategy depends a great deal on its employees commitment level. It is for the organizational leadership to attract, motivate and retain committed people for future business objectives. Organizational leadership of the hotels need to create the understanding that it is only an employees total commitment that will get translated into greater productivity and a very high level of quality service, which ultimately affects the bottom line. Maintaining the commitment of individuals is imperative to an effective hotel industry. Commitment is crucial for the employees of the hotel sector in general and the managers in specific because:

Organizational Commitment in Hotel Industry The commitment of managers is essential for survival and effectiveness of the large organizations because the fundamental responsibility of the management is to maintain the organization in the state of health necessary to carry on its work. Effective management thus presupposes a proprietary concern, a sense of responsibility for the dedication to sustaining the well being of the organization. In the absence of ownership as a motive for such creative and modern organization have the necessity turned to the deliberate creation and protection of committed elites. (Perrow, 1972) 1.4

Problem statement

We have selected the hotel sector of Pakistan because after analyzing the current scenario and reviewing articles we came across to the problem that is the hotel sector employees showed low organizational commitment. The reason behind this behavior is that employees are not getting career opportunities for their further professional growth. On the same side work life policies are according to the employees requirement which really made the employees to switch from organization to organization.

In todays business environment, it is imperative that hotel sector like all the other sectors of business learn to attract motivate and retain the key talent needed to meet the aggressive business goals. The problem lies in the fact that many hotels have been unable to produce loyal employees as employees always look for a better opportunity and as soon as they get it they like to grab it. (Perrow, 1972) Quite often it is noticed that employees dont have a good image of the hotel sector as for as career growth opportunities are concerned (Swailes, 2004). The success of the hotel sectors future business strategy depends a great deal on its employees commitment level.

1.5
Following questions will be addressed

Research Questions

1. What are the determinants of organizational commitment in Hotel industry?

Organizational Commitment in Hotel Industry 2. What steps the hotels should take to ensure the commitment of their employees? 3. After how much time an audit is conducted in hotels to check the satisfaction level of the employees? 4. What are the common reasons behind employees leaving their organizations and shifting to the others in hotel industry? 5. What is the annual rate of employees leaving their organizations in the hotel sector?

1.6

Rationale of the study

The rationale of the study is to investigate the affect of certain variables i.e. job characteristics, supervisor support, career opportunities and work life policies on the organizational commitment of employees of the hotel sector of Pakistan. How the levels of employee commitment in the hotels differ due to the above mentioned factors and how the commitment among employees of the hotels can be enhanced by using them in favor of the employees. 1.7

Significance of the study

The significance of this study is that organizational commitment plays a crucial role in the overall success and productivity of the hotel sector like all the other sectors of business. Hence, organizational commitment is crucial for all the sectors of business but the fact is that many organizations do not pay much attention towards ensuring organizational commitment. So, this study addresses and emphasizes the fact that committed and loyal work force can do wonders for the organizations in general and hotel sector in special. So, if the hotel sector wants to get the best out of its employees then it should make sure a well committed work force. 1.8

Objectives of the study

The objectives of the study are as follows: 1. Study organizational commitment level of the senior and middle managers of the Hotel sector of Pakistan. 2. To ascertain stresses and pulls on the middle and senior management of the hotel industry. 3. The scope of expansion at middle and senior level manager in Food & beverage areas of hotels. 7

Organizational Commitment in Hotel Industry 4. To give suggestions in the light of findings for increased organizational commitment for the hotel industry of Pakistan. 5. To study the methods adopted by organization to cultivate commitment among the focused level of management and ensure its maintenance.

1.9

Summary Chapter 1

Organizational commitment to the hotel sector is the collection of feelings and beliefs that people have about the hotel sector as a whole. Organizational commitment towards the hotel sector is the psychological attachment of an employee to the hotel he works in. Committed employees are more productive and work with a focus on quality to increase customer satisfaction and the profitability of the hotel. Quality workforce is required to be retained within the hotel sector as well, like all the other sectors of business and in order to ensure quality workforce retention the hotel should look after the interests of its employees. Quite often it is noticed that employees dont have a good image of the hotel sector as for as career growth opportunities are concerned. Employees have this feeling that career opportunities outside the hotel sector are great and not so within. Employees in the hotel sector usually do not find the characteristics of their job interesting. This perception is needed to be dealt with quickly if the hotel sector wants the employee commitment. The success of the hotel sectors future business strategy depends a great deal on its employees commitment level. Maintaining the commitment of individuals is imperative to an effective hotel sector. Commitment is crucial for the employees of the hotel sector in general and the managers in specific because: The significance of this study is that organizational commitment plays a crucial role in the overall success and productivity of the hotel sector like all the other sectors of business. Hence, organizational commitment is crucial for all the sectors of business but the fact is that many organizations do not pay much attention towards ensuring organizational commitment. So, this study addresses and emphasizes the fact that committed and loyal

Organizational Commitment in Hotel Industry work force can do wonders for the organizations in general and hotel sector in special. So, if the hotel sector wants to get the best out of its employees then it should make sure a well committed work force.

CHAPTER 2 LITERATURE REVIEW 2.1 Introduction

Organizational Commitment in Hotel Industry The worlds economy is going through massive change. There is a shift from manufacturing to services. Burack and colleagues propose that change is motivating managers to fit their organizations structure, culture and managements processes to the demand of the external environment. Internally the change is viewed as motivating the implementation of participative management and employee involvement processes which lead to high employee commitment to the organization and high employee performance. Through these processes management and employees are said to enter a new psychological construct that extend far beyond the traditional exchange of labour theory. In a widely accepted paradigm in organization theory, organizations and their members are seen in an exchange relationship .Each party makes certain demands on the other while providing something in return. (Angle and Perry, 1981) Organizational commitment is a desired outcome of human resource management (HRM) strategies given its links to positive attitudes and behavior in the pursuit of change. (Swailes, 2004) These findings may reflect that extrinsic motivation factors have not been effectively used in the public sector as a means of enhancing organizational commitment and improving organizational performance. (Moon, 2000)

2.1.1

Organizational Commitment and the Changing World of Work

According to Baugh and Roberts (1994) it is apparent that the nature of the workforce is changing. Trend includes increasing levels of education, increasing professionalism, and decreasing organizational loyalty among the workforce. These trends may not be independent that is increasing levels of education and professionalism might contribute to generally reduced commitment and loyalty to employers.

2.1.2

Organizational Commitment and Hospitality Industry

In a global service economy the workplace is changing. With tremendous increase in the service sector, decreasing labor pools and increasing demands for services. Satisfied and committed employees contribute to the success of any hospitality company. (Smith, Gregory & Canon, 1996).Hospitality companies must be sensitive to their employees 10

Organizational Commitment in Hotel Industry needs in order to provide satisfaction and commitment. (Smith, Gregory & Canon, 1996). The construct of organizational commitment is of particular relevance to the hospitality industry, which is a service oriented industry with high employee turnover. (Tanke, Delmar & Albany, 1990) Hotel managers usually do not assume responsibility for high employee turnover and put all the blame on macro economic, social or political factors. Can these factors, in fact, be considered the only and principal reason accounting for high employee turnover? Is there really nothing managers can do to avert employee turnover and bear considerable corporate responsibility for the situation (Kazlauskaite, Buciuniene & Turauskas, 2006). A committed member's definite desire to maintain organizational membership would have a clear relationship to the motivation to participate. Willingness to exert considerable effort on behalf of the organization and the belief in and acceptance of the organization's goals, in combination, have implications for the member's motivation to produce for the organization. (Angle and Perry, 1981) Several measures of organizational effectiveness would be sensitive to differences in the levels of commitment of the members of the organizations studied. Thus, it was hypothesized that organizations whose members were strongly committed would have both high participation and high production. Such organizations were therefore expected to show relatively low levels of absenteeism, tardiness, and voluntary turnover, and high levels of operating efficiency. In addition, in keeping with the view that committed employees will engage in spontaneous, innovative behaviors on behalf of the organization, it was anticipated that, within limits, organizational commitment among the members would facilitate the ability of an organization to adapt to contingencies. The adaptabilitycommitment relationship would not actually be expected to be monotonic over all possible levels of commitment. (Angle and Perry, 1981). For over a decade the concept of organizational commitment has received considerable attention from both managers and social scientists. This concern is reflected in the large

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Organizational Commitment in Hotel Industry number of theoretical and empirical works that focus on the topic. The great interest in organizational commitment appears to stem from its reported relationship with several important employee behaviors. (Mottazz) Employees generally enter with the belief that there is limited career development and promotional opportunity. The hospitality industry, and in particular five-star hotels, cannot afford excessive turnover. The findings indicate that the dual commitment of employees to the organization and union leads to lower turnover. The key to employee commitment, however, lies with job satisfaction. Job satisfaction was affected by role conflict and promotional opportunity. Several strategies can be proposed to increase job satisfaction and therefore reduce employee turnover. The first is to provide greater variety in employees work. This strategy links with the variable of career development and the importance of training. As it is important to have compatible job demands, there is also a need for explicit, accurate job descriptions and clear reporting policies, which should lead to greater role clarity and increased retention. (Iverson and Deery, 2002)

2.1.3

Hotel Industry

Findings indicate that frontline hotel employees who cannot establish a balance between a family and social commitments and prescribed job related tasks are unable to perform effectively in the workplace. Frontline hotel employees are expected to deal with a number of customers needs and requests. Once they are more involved in family and/or social commitments, they cannot meet the expectations of their managers and exert adequate time and energy into dealing with customers needs and requests. Consequently, they become ineffective performers. (Karatepe and Kilic, 2005)

2.2

Organizational Commitment

Commitment is the degree to which individuals become attached to an organization as the result of investments (time, effort, identification, rewards, and such), as reflected by their intent to remain with the organization.

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Organizational Commitment in Hotel Industry Commitment refers to the extent to which the individual perceives that he or she is bound, tied, or locked into a certain organization because of the potential loss of valued investments, and perception which results in a propensity to stay. (Mottazz, 1989) Organizational commitment and task commitment are combined in the definition of commitment that is used in our study, where commitment is defined as a sense of loyalty to and identification with the organization, the work and the group to which one belongs. This feeling is expressed in the motivation to bring effort into ones work, the motivation to take responsibility and a willingness to learn. A precondition is that the employee is well informed and is involved in decision-making processes. (Nijhof, Jong & Beukohf, 1998) Commitment influences behavior independently of other motives and attitudes and might lead to the persistence in the course of action even in a face of conflicting motives or attitudes. Thus commitment leads individuals to behave in ways that from the perspective of neutral observers might seem in contrast to their own self interest. e.g. a temporary employee who is productive despite having no job security. (Meyer, Herscovitch, 2001) Commitment strategies shape desired employee behaviors and attitudes by forging links between the organization and employee goals. Thus the focus is on the developing committed employees who can entrust to use their discretion to carry out job tasks in ways that are consistent with organizational goals. Employee retention, productivity, quality and corporate financial success are characterized as high performance, high commitment strategies (Tusi et al, 1995). Such strategies will empower employees and help them to participate in decision making. The empowerment should increase the business competitiveness. The consequences of organizational commitment benefit the organization in terms of increased job performance , intention to stay, increase in attendance loyalty decrease in turnover, greater creativity, more cooperation( particularly across discipline specialties)

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Organizational Commitment in Hotel Industry more volunteerism and more time devoted to productive work on behalf of the organization. (Dockel, 2003)

2.3
1. Job characteristics 2. Supervisor support 3. Career opportunities 4. Work life policies 2.3.1

Identifying Variables

The basic independent variables identified for our research are:

Job Characteristics

The job characteristic model acknowledges the role that individual differences play in determining how workers respond towards the design and characteristics of their job. To see how individual differences interact with job design The job characteristic model helps to explain why employees may respond some what differently to an increase in some of the core characteristics of their jobs. The model identifies three types of individual difference that affect the relationship between the core dimensions and the psychological states and the relationship between the psychological states and outcomes. (McShane and Glinow, 2000) The nature of those relationships depends on the following: 1. Growth need strength is the extent to which an individual wants his work to contribute to personal growth, learning and development. When an individual wants his work to fuel personal growth, both relationships in the model are stronger. Such individuals are expected to be especially responsive both to increased levels in the core dimensions and to the critical psychological states. 2. Knowledge and skills at an appropriate level enable workers to perform their jobs effectively. When workers do not have the necessary knowledge and skills, the relationships may be weak, nonexistent, or even negative. Once the job is redesigned, he may become frustrated because his lack of knowledge and lack of

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Organizational Commitment in Hotel Industry skills prevent him from performing well. As a result, his intrinsic motivation and job satisfaction will probably suffer, and he will be unable to perform the more complicated job. 3. Satisfaction with the work context describes that how satisfied workers are with extrinsic outcomes they receive from their jobs. Hackman and Oldham reasoned that when workers are dissatisfied with their jobs they spend much of their energies in overcoming the dissatisfaction with the context and are not able to appreciate and respond to the potential for intrinsic motivation or commitment on their jobs. When satisfaction with the work context is high the relationships are expected to be strong, when context satisfaction is low they are expected to be weak.

The intrinsic task rewards of autonomy, significance, and challenge tend to increase employees' behavioral involvement, which appears in turn to lead to greater attitudinal commitment as employees develop attitudes consistent with their behavior. (Mottazz, 1989) The job should be rewarding. It should be designed to maximize skill variety, task significance, autonomy and feedback, and should provide opportunities for learning and growth. A very varied and interesting job will take time to learn and will provide the jobholder with a feeling of ownership of the job that no one else can fill his or her shoes immediately. The job-holder will not willingly leave such a job and may also feel that he or she is causing their employer difficulties in filling the post if they resign. (Curtis &Wright, 2001).Important correlations with commitment are job interest (r = 0.40), variety (r = 0.35), autonomy (r = 0.23), and feedback (r = 0.29). It is striking that the average scores on these characteristics are relatively low. This means that a lot of improvements in commitment can be made when more attention is paid to these factors. (Nijhof, Jong & Beukhof, 1998) Perhaps most important to students of communication, identifying allows people to persuade and be persuaded. Thus, it seems obvious that identification can help employees

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Organizational Commitment in Hotel Industry in organizations as well as organizations themselves to be better off in terms of well-being, job satisfaction, and productivity. It flows directly from the findings of the present study that human resources policies and practices fostering commitment are not necessarily increasing identification because commitment and identification develop on different bases. Thus, practitioners should always ask themselves whether they want to increase commitment (and which forms of it) or identification. (Wagner, Dick and Gautam, 2004) Certain role factors such as tenure and work overload and personal factors such as attitude toward change and job involvement are strong influences on commitment. If role conflict or overload increased, the change-oriented manager's exchange equation would permit easier exit from the situation. Job involvement is also a strong positive predictor underlining the importance of psychological predispositions towards work. In addition the positive influence of the skill level of subordinates suggests that job content can also be an important influence on organizational commitment. (Stevens, Beyer and Trice, 1978) This article investigates the interrelationship between individual characteristics, work rewards, work satisfaction, and organizational commitment. Generally, the data suggest that individual characteristics have very little impact on either satisfaction or commitment; however, it appears that satisfaction has a significantly greater effect on commitment than the reverse. The intrinsic rewards of task involvement, task significance, and task autonomy have by far the greatest influence on satisfaction and commitment, accounting for approximately 56 % of the explained variance in satisfaction and 31% in commitment. The results further indicate that work rewards, and in particular intrinsic rewards, are the key predictors of work satisfaction. Moreover, intrinsic rewards are important predictors of organizational commitment. These findings suggest that efforts to increase satisfaction and commitment should be focused on the task or job itself.

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Organizational Commitment in Hotel Industry As a final point, some difficulty was encountered in establishing the possible causal ordering of work satisfaction and organizational commitment. (Mottaz, 1987)

2.3.2

Work life policies

The quality of work life has to be taken seriously by employers. Desire for a good quality of work life has led to increased interest in employee job satisfaction and organizational commitment. When an employees expectations regarding fulfillment of important needs are met by the organization, an exchange between needs and rewards has occurred and commitment to the organization is, therefore, expected to increase. (Kenneth, Susan & Debby, 1996)In recent years, achieving a better work-life balance has become increasingly important for many employees. Some organizations have improved retention by offering staff more flexible working options and by implementing other family-friendly policies. Managers and other key staff should possess an understanding of the value of employee retention and commitment and how it can be achieved. Policies and activities to encourage staff loyalty and stability should be integrated into the culture and everyday life of the organization, so that committed employees are the norm, rather than the exception. Fully committed individuals have a desire to maintain membership in the organization, believe and accept the values and goals of the organization, and are willing to exert effort on behalf of the organization. They should be treated as a precious resource to be nurtured and retained for the benefit of all members of the organization (Susan and Dennis, 2001) Work/life policies include flexible work scheduling (e.g. part time work, job sharing variable starting and quitting times), family leave policies allowing periods away from work for employees to take care of the family matters, an child care assistance (e.g. referral service, on-site or off-site care centers) (Grover & Crooker, 1995). Academics, policy makers, and human resource professionals advocate flexibility policies as a way to help employees balance work and family and to promote a more committed workforce for employers. This mutually beneficial scenario assumes that employees are interested in work- family policies and perceive themselves as being able to use the

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Organizational Commitment in Hotel Industry The business case rests on three key assumptions: that employees desire work-family policies and would be interested in using them if available, that employees perceive themselves as able to use these policies, and that employees repay employers who provide work-family policies with higher levels of commitment. Work-family policy interest, usability, and effects on commitment have provided valuable information. In fact, if firms offer corporate programs on paper but make it impossible for workers to use them, they may undercut the very loyalty they are trying to induce. These policies include flextime, in which employees decide when to start and stop working, and flex place or telecommuting, which allows employees to conduct some of their official business at home. The dedication of high-skilled and expensive-to-replace respondents is essential to the firm's success in meeting the challenges of the fast- changing, global marketplace. These items were worded as "Flextime: Employees determine the hours at which they start and stop working" and "Flex place/ telecommuting. Those who express no need for or interest in flextime policies are older, work longer hours, have higher salaries, and are more likely to be supervisors. They are also more likely than members of the other two groups to have a homemaking spouse. Older workers and supervisors are less likely to express need for or interest in flex place policies than are other workers. Interest in these policies is significantly lower among those in staff positions and in work groups with longer average tenure. Those uninterested in flex place policies also report higher levels of organizational commitment than do other groups. (Loy and Wharton, 2004). The results of this study indicate that workfamily conflict is a significant predictor of job satisfaction, while familywork conflict is not. In addition, the hypotheses that job performance exerts a significant positive effect on job satisfaction and job performance and

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Organizational Commitment in Hotel Industry job satisfaction depict significant positive associations with organizational commitment. (Karatepe and Kilic, 2005) The study shows that (for this population at any rate) it is the longer-term factors, such as family, career and organizational issues, which have the major influence on organizational commitment. The same factors are important in shaping organizational commitment whatever the career stage. Making things easier for the family is obviously important here. As long as potential or actual conflict between career and family remains high, organizational commitment will tend to be eroded.(Jans, 1989)

2.3.3 Career Opportunities

When a person is considering a long-term tenure to an organization, the notion of career prospects becomes an important link between that person and that organization. The chances of development and advancement within the organization over a long period may be an incentive to join it or remain with it and, later, expertise gained in that organization becomes a foundation for further work within it or may even be a factor perceived as limiting the person's employability outside the organization (Becker, 1960). Good career prospects and possibilities for further training and education are found to be related to commitment (Caldwell et al., 1990) Career opportunities can be provided by an employer by: 1. providing employees with wider experience 2. introducing more systematic procedures for identifying potentials As assessment or development centers: 1. encouraging promotion from within 2. developing more equitable promotion procedures 3. providing advice and guidance on career paths (Curtis &Wright, 2001) The multidimensional nature of career motivation suggests that motivational strategies will have to deal with broad sets of variables. For example, a new pay system may be designed and implemented along with a career development program, a supervisor-subordinate joint

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Organizational Commitment in Hotel Industry goal setting process, and new transfer and promotion policies as an integrated system. (London, 1983) A 'career' within the organization will frequently imply a longer time frame than will a 'job' (Van Maanen, 1977) and a person may experience more than one 'career' within the one organization (Hall, 1985): as Goffman (1961) puts it, a career can be based on one or more of the significant roles which a person plays over life. It is likely, therefore, that career prospects within the organization will shape organization commitment as much as, if not more than, job satisfaction or job involvement. Career prospects may include assessments about promotion chances, likelihood of future job satisfaction in either the current job or other jobs in the same organization, or even simply the chance of keeping a job in that organization. Human resource policies as the attention that is given to individual career prospects and the possibilities for further education turn out to have a moderate correlation with commitment (r = 0.29 and r = 0.25).(Nijhof, Jong & Beukhof, 1998) As Steers and Mowday (1981) point out, a person may be prepared to tolerate short-term job dissatisfaction if he or she feels confident about longer-term prospects with the organization; and, in addition, a person may be reluctant to tie him/ herself psychologically with an organization in which his or her future seems bleak. But, even though it is expected that career prospects will be a major influence on organizational commitment, the latter may also be affected by a person's job involvement (feelings about the position currently occupied). As Van Maanen (1977) points out, careers researcher should look at not just the individual in the career but also the occupational/organizational setting in which that career takes place. One aspect of this setting is the person's view of the organization he or she is working for.

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Organizational Commitment in Hotel Industry A person's perception of the organization's future may affect his or her feelings about it. On the one hand, a threat to the organization may stimulate commitment: people may be willing to make sacrifices or work harder to help the organization survive in a critical period. One the other, they may see an organization which has an uncertain future as being an undesirable place to invest their own futures. The perceptions of the organization's future may arise from assessments either that the organization is poorly run (organizational effectiveness) or that the market support for that organization is declining (market support). This may be similar in its effects to those of career prospects argued earlier: that people may be reluctant to tie themselves to an institution in which the future is bleak. (Chay and Aryee,1999) Research on adult development (Brim, 1976; Farrell and Rosenberg, 1981; Gould, 1978; Levinson et al., 1978; Lowther, Coppard, Gill and Tank, 1982; Murphy and Burck, 1976) suggests that there is a 'life cycle' effect in work adjustment. Firstly, different 'factors or issues may have differing degrees of importance for a person, depending on what life stage he or she is in. For example, the Levison et al. study indicated that there are two important stages of 'transition' in men's lives - the late 20s-early 30s and the early 40s - where a man questions his existing life structure and may begin to change it if it is not appropriate to his wants and goals. Levinson et al.'s findings are supported by those of a study of 35-54-yearold men who changed from high to lower status careers (Thomas, 1979). A majority of those in 'mid-life'(40-45 years old) changed to find more meaningful work and for a better fit between personal values and their work. Another study of career changers showed that managers who changed jobs when in the age group 35-39 years tended to do so for 'career advancement' factors (e.g. to gain greater promotion potential), in contrast to those in two older age groups (40-49 and 50 and over) who were more likely to place importance on 'non-advancement' factors e.g. having special qualifications for the job, having proven ability for the job, desirability of location and cost of living in the new location (Hill and Miller, 1981). And other studies or reviews tell a similar story: intrinsic job characteristics appear to have a greater impact on the performance and attitudes of young workers than on senior employees (Lowther et al., 1982; Rabinowitz and Hall, 1981)

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Organizational Commitment in Hotel Industry Commitment-relevant experience is defined at each of three stages of managerial tenure. Stage one is the first year of organizational membership. Stages two and three correspond to years two through four and years five and beyond, respectively. Another characteristic of managers in the middle of the second stage, particularly before achieving significant accomplishments, will be uncertainty regarding the suitability of the career choice. Thus, experiences which reinforce the occupational self-image may well contribute to the growth of organizational commitment. These might include interaction with a supportive peer group which anchors favorable attitudes toward the organization or reassurances from superiors. (Buchanan, 1974)

2.3.4 Supervisor Support

Friendly and supportive relationships with coworkers and supervisors tend to lead to greater social (behavioral) involvement in the organization; this involvement would also seem to lead to greater attitudinal commitment (Mottazz, 1989) Matched data collected from 143 employees and their immediate supervisors of a private sector organization indicated that employee perceptions of procedural justice were only related to supervisor-rated affective commitment among employees with a strong exchange ideology. Overall, these results suggest that management practices that promote perceptions of procedural justice are likely to enhance commitment among employees sensitive to social exchange. Practices that enhance the social exchange between the employee and employer may not only help individual managers build commitment among key employees but also yield a competitive advantage. (Andrews, Kaemar and Witt, 2001). The study suggests that the quality of exchange relationships affect subordinates commitment and good will. For the supervisors, leadership training that emphasizes the importance of mentoring, human relations skills, joint development of goals, and effective interpersonal communications would be helpful. Career planning and development

22

Organizational Commitment in Hotel Industry seminars and workshops would benefit subordinates. Supervisors are positive influences on their subordinates. Supervisors should provide equal training and career development plans to all subordinates, and recognize each employees potential and capabilities to encourage an organizational culture. (Truckenbrodt, 2000) The research findings indicate that an increase in how supportive a supervisor is perceived by an employee is accompanied by an increase in the employees commitment. Increased perceived supervisor support, however, was associated with higher performance ratings. (Soulen, 2003). Public accountants revealed a cluster (called the locally committed) with above average commitment to the work group and to the supervisor but below average commitment to the organization and to top management. Public accountants were 0.33% committed to organization. (Swailes, 2004) The strength of the relationship between commitment and performance is asserted to depend on the amount of variance in commitment. However, goal setting plus self generated
feedback led to higher organizational commitment and performance than did goal set-ting plus feedback given by the supervisor. It seems clear that productive goal setting for self and

others (including identifying the organizational mission or purpose) is a key activity of successful managers and leaders. (Locke, Latham and Erez, 1988) In effect the influence of politics in management policies, personnel decisions, and other matters alienates the individual from the organization creates a sense of unfairness in exchange relations. The role of supervision is creating a supportive and a productive social environment is a vital determinant of both commitment and its outcomes. (Balfour and Wechsler, 1996) The present study explored the role of supervisory support in explaining the link between teamwork and satisfaction. Even though supervisory support was less important in companies where there was greater use of teams, this support was still positively related to satisfaction. (Griffin, Patterson and West, 2001)

23

Organizational Commitment in Hotel Industry Some correlation results identified by Iverson and Deery form their research, organizational commitment shows (r=0.22) with supervisor support, (r= -0.34) with routinization, (r=0.34) with promotional opportunity. For career development and job opportunity correlation was 0.33 and -0.16 respectively. Research on organizational commitment was conducted by Andreas Dockel. He selected those independent variables which are also a part of our study. The correlation results of independent variables by Dockel were (r=-0.083) for job characteristics, (r=0.360) for supervisor support, (r=0.344) for career opportunities and (r=0.312) for work life policies. He conducted his research on three types of commitment affective, normative and continous. Among these affective commitment results are useful for us. The value of R square according to the regression results of Dockels research for affective commitment is 38%.

2.4

Commitment and Managerial Level

There are three variables that are associated with the commitment of all employee groups: rewards and recognition, communication and work-life balance. Evidence for the importance of satisfaction with rewards and recognition is strongest for managers and professionals. There is some evidence that company efforts to help employees achieve a balance between work and home life is linked to the commitment of employees in all three groups. Involvement is important for managers and professionals, but interestingly not for workers. Satisfaction with career opportunities and performance appraisal training, performance-related pay and team working. Managers commitment is associated with satisfaction with four HR practices, but is distinctively linked to their interest in internal career opportunities. This is a consequence of the expectations this group of employees hold about the nature of their job and their relationship with their employer. This issue has been discussed extensively in terms of the employees psychological contract and OCB, where perceived organizational support is a
is

linked to only

one group, while there are no associations between commitment and satisfaction with

24

Organizational Commitment in Hotel Industry key concept in explaining the antecedents of OCB through a process of social exchange. ( Kinnie, Hutchinson, Purcell, Rayton and Swart, 2005) Having a stable work force provides for greater continuity and consistency in provision of services and response to the public. Greater employee commitment, satisfaction, and cohesion should result in lower turnover, less absenteeism, and higher morale and should enhance the organization's ability to provide a high level of service. Managers in organizations desiring to create greater levels of commitment, satisfaction, and cohesion should begin a concerted effort to be more people oriented, encouraging, equitable, trusting, and allowing of greater personal freedom. (Box, Dunn and Odom, 1990) A common element in this literature is the contention that higher levels of performance and productivity result when employees are committed to the organization, take pride in organizational membership, and believe in its goals and values Weaker but still significant relationships existed with satisfaction with supervision. Organizational support and social satisfaction were both significant, with signs in the expected direction, indicating that they have a positive effect on organizational attachments derived from feelings of affiliation, or identification commitment. The findings of this study suggest that employee commitment and attachment to the organization can be increased through efforts to improve the organization's social atmosphere (Danny and Barton, 1991) The findings also show that the commitment measure used strongly affects the magnitude of the relationship. The findings of this study show that organizational commitment and turnover are both dynamic concepts. (Cohen, 1996)

2.5

Retaining Employees - The Fast Track to Commitment

People leave their jobs for health reasons, family and other personal reasons, career moves and retirement, and this turnover provides the opportunity for existing staff. The cost of

25

Organizational Commitment in Hotel Industry replacing leavers can be high; the cost of recruiting new staff can be up to 150 percent of annual salary for key staff. In addition to financial costs there is the loss of skills, knowledge, experience and the investment in training. Also, there is the disruption to the work and staff as well as the effect on staff morale. The financial costs associated with turnover can be categorized as follows: Separation costs (for example, administration time, pay for leave not taken, and time for exit interviews, managers time). 1. Temporary replacement costs (for example, overtime, agency fees, administration time, training). 2. Recruitment and selection costs (for example, advertising, agency fees, administration time for processing applications, conducting interviews, administering selection tests). 3. Induction and training costs.(Susan Curtis, and Dennis Wright, 1997)

CHAPTER 3 RESEARCH METHODOLOGY

3.1

Introduction

In this chapter the research methodology used is quantitative in nature. Other factors such as sample and sampling techniques, data collection and methods to analyze and interpret data are discussed. Research is a creative activity and there are different forms of research resting on different combinations of paradigms, purpose, technique and situations. Quantitative research is used to presents a vast array of social and individual objects, objects and processes, both tangible and intangible. It begins with the series of predetermined categories, usually embodied in standardized quantitative measures and used to make broad and generalizable comparisons. (Terre Blanche & Durrheim 1999:72)

26

Organizational Commitment in Hotel Industry

3.2

Characteristics of the target population

Islamabad Rawalpindi Rawalpindi, Gilgit

Population: Middle and Upper level management at Hotel Industry of Pakistan Marriot hotel Pearl Continental hotel Serina hotel

Total population or middle or upper level managerial cadre of these hotels is about ..

3.3

Sample size

Total sample size is 200; we have collected data from 107 out of 121 distributed questionnaires. Including 30 employees on average from each hotel. The total number of employees used in this research amounts to 107. The target population is described in the following tables : 3.3.1 Tenure Table 3-1 Frequency: Tenure Tenure (years) 1-5 6-10 11-15 16-20 21-25 26-30 total Frequency 48 24 10 14 6 5 107 Percentage 44.8 22.4 9.3 13.0 5.6 4.6 100

According to the table 44.8% of employees have 5 or less years of organizational tenure with the organization with (n=48). And a very small 4.6 % of employees having a longer tenure with the organization with (n=5). This indicates relatively short job history at these organizations.

3.3.2

Qualification
Frequency Percentage 27

Table 3-2 Frequency: Qualification Qualification

Organizational Commitment in Hotel Industry Master Bachelor others Total 50 53 4 107 46.7 49.5 3.7 100

From table it is clearly represented that 49.5% of employees working in organizations hold bachelors degree (n=53). A very small percentage is shown for other qualifications which include employees with Higher Secondary School Certificate. This was the minimum level of education present in these organizations. None of them was holding a Doctoral degree o equivalent

3.3.3

Home language
Frequency 28 51 11 4 9 2 2 107 Percentage 26.1 47.6 10.2 3.7 8.4 1.8 1.8 100

Table3-3 Frequency: Home Language Home language Punjabi Urdu .Pushto Shina Hindko Potohari Others Total

According to the table 47.6% of the respondents are Urdu speaking employees (n=51) and 26.1% (n=28) are Punjabi speaking. Other than these two languages Pushto was the language with maximum % among Shina, Hindko and Potohari. By observing the table of Home Languages, it indicates that Hotel industry is open to people from different parts of country and they welcome diversification in their organization.

3.3.4

Marital status
Frequency 74 33 107 Percentage 69.1 30.8 100

Table 3-4 Frequency: Marital status Marital status Married Single Total

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Organizational Commitment in Hotel Industry According to table 69.1% of the respondents are married (n=74), and 30.8% are single (n=33). The majority thus has spouses and is part of family unit.

3.3.5

Gender
Frequency 84 23 107 Percentage 78.5 21.4 100

Table 3-5 Frequency: Gender Gender Male Female total

According to the table 78.5% of the respondents are male (n=84), and females represents 21.4% (n=23) of the total respondents.

3.3.6

Age
Frequency 15 32 24 9 13 6 4 4 107 Percentage 14.0 29.9 22.4 8.4 12.1 5.6 3.7 3.7 100

Table 3-6 Frequency: Age Age 20-25 26-30 .31-35 36-40 41-45 46-50 51-55 56-60 Total

According to the table 29.9% of respondents are between the ages of 26-30 (n=32) which indicates that many of the respondents are relatively young.

3.4

Sampling Technique

Sampling is a process used to select cases for inclusion in a research study. A purposive sample is a sampling technique that selects non-randomly from the population, but fro a particular reason. (McBurney, 1994:203)

29

Organizational Commitment in Hotel Industry The sampling technique we used in our research is PURPOSIVE in nature. As we are collecting data from employees who are performing their jobs at a particular level .i.e. middle and upper level management

3.5

Research Design

The design of the study is SURVEY in nature. Only 3 hotels in Rawalpindi, Islamabad, and Gilgilt were chosen. The HRM managers and other references in the hotels were approached to determine whether they would give the permissions conduct the research for that reason we had permission letter from our institute to the operation managers of the organization to cooperate with the students. Due to references in hotels employees have given their output in research in form of questionnaire. The questionnaires were distributed by self and they were requested to return questionnaire within a week time. The survey design was selected because it is the best method to describe the existing characteristics of group of people. A survey is a way of obtaining self reported information about the attitudes, beliefs, opinions, behavior or other characteristics of a population.

3.6

Research Instrument

A questionnaire can be defined as a group of written questions used to gather information from respondents, and it is regarded as one of the most common tools for gathering data in social sciences. A questionnaire usually consists of number of measurement scales as well as questions that elicit demographic information of the respondents.( Vogt.1933, referenced in Terre Blanche & Durrheim, 1999:293) . Questionnaire was used as a research instrument for data collection and each questionnaire includes 38 questions.

3.7

Type of Instrument

30

Organizational Commitment in Hotel Industry

There are many scales to measure organizational commitment. The best known is the organizational commitment questionnaire (OCQ). Following scales were used for: 1. Qualification 2. Language 3. Marital status 4. Gender identification 5. four different variables Category scale Category scale Dichotomous scale Dichotomous scale Likert scaling

Questionnaire for variales used 5 point Likert type scales to measure respondents possible responses from strongly agree to strongly disagree coded from: Strongly agree 01 Agree Neutral Disagree Strongly disagree 02 03 04 05

3.8
Two types of data were collected 1. Primary data 2. Secondary data

Data collection

Primary data has been gathered with the help of questionnaire from 107 employees of each hotel by distributing among concerned management employees. Secondary data for literature review is gathered from Human resource books, journals and articles from search engines JSTOR, Emerald insight, Google, Ebscohost Articles and electronic thesis data were reviewed from university of Pretoria, Harvard business reviews, university of Columbia, university of Australia and others. We used combination of 5 different questionnaires by 5 different researchers. 1. Demographics and questions on organization commitment by Allen & Meyer (1991) 31

Organizational Commitment in Hotel Industry 2. Characteristics related to job by Hackman and Oldham (1975-1976). Their job diagnostics survey was used with two items comprising each dimension. I.e. skill variety and job autonomy. 3. Questions regarding supervisor and employee relationship by Ramus and Steger (2000), Good and FairHurst (1999) 4. Career development questions by Landau and Hammer (1986) 5. Questions about balance between work and life by Paree and Colleagues (2001). Questionnaire included 38 questions and 4 to 5 questions for each variable so that analysis can be easily done from all aspects such as to investigate which factors influence commitment?

3.9

Analysis and Interpretation

Statistical methods are a set of mathematical techniques that allow the researcher to make claims about the nature of the world using forms of principles statistical argument (TerreBlanche &Durheim, 1999:97) Data we had collected is quantitative in nature as we are quantifying our variables and results through different methods.After data collection we will analyze data by using following tools to tabulate all research finings. 1. Frequency tables 2. Correlation 3. Regression 4. SPSS (Statistical Package for Social sciences) was used to analyze the data

3.10

Procedure of Research

30 questionnaire has been distributed among the management of 3 selected hotels (including their branches in Gilgit) working in middle and senior management. It took 17 to 20 days for the questionnaire survey to be completed. Total time of data collection was 4 o 5 weeks including primary and secondary data.

3.11

Research Framework
32

Organizational Commitment in Hotel Industry Theoretical Frame work. The variables that are being considered are described in the theoretical framework. Job Characteristics, Supervisor support, Career Opportunities and Work life Policies are the independent variables. Organizational commitment is the dependent variable. By these parameters we will study and find out the fact that increase or decrease organizational commitment is dependent upon which of the above mentioned independent. Independent Variables Job characteristics dependent variable

Supervisor support Organizational commitment Career opportunities

Work/life policies

3.12
H1 in hotel industry. H2

Hypothesis Formulation

There is a relationship between job characteristics and organizational commitment

There is a relationship between supervisor support and organizational commitment

in hotel industry.

33

Organizational Commitment in Hotel Industry H3 There is a relationship between work life policies and organizational commitment

in hotel industry. H4 There is a relationship between career opportunities and organizational

commitment in hotel industry.

3.13

Summary Chapter 3

The research design used in this study consisted of quantitative research methods. The discussion of quantitative research methodology included an explanation of research design. The identified population, used and their characteristics were tabulated. The methodology of the questionnaire design and the composition of the different measurement scales were discussed. This was followed by an outline of the statistical methods used in this study. The empirical data collected from this survey conducted, will be discussed in chapter 4

CHAPTER 4 RESULTS AND DISCUSSIONS

34

Organizational Commitment in Hotel Industry

4.1 Correlation Analysis and Discussions on the Research Results The Correlation matrix is showing the relationship between organizational commitment and four of its independent variables which are job characteristics, supervisor support, career opportunities and work life policies. Results have shown that organizational commitment is highly dependent on all the four independent variables which are job characteristics, supervisor support, career opportunities and work life policies. So, enhancement in any of the mentioned independent variables has resulted in increasing the organizational commitment level of the hotel employees. Table 4.1 two tailed correlation table is given as under: mean 2.82 2.78 2.93 2.70 2.90 Stdev 0.41 0.43 0.41 0.44 0.56 OC 1 0.650** 0.563** 0.637** 0.540** JC 1 0.629** 0.473** 0.392** SS 1 0.380** 0.376** CO WLP

OC JC SS CO WLP

1 0.196*

OC=organizational commitment, JC=Job characteristics, SS=Supervisor support, CO= Career opportunities, WLP=Work life policies. **Correlation is significant at the 0.01 level. *Correlation is significant at the 0.05 level.

4.1.1 Impact of Job Characteristics On Organizational Commitment

The value of correlation of the job characteristics with organizational commitment is 0.650 which shows that the correlation is significant up to the 0.01 level. So, while considering this correlation value we can say that the independent variable i.e. job characteristics has a significant effect on the level of the organizational commitment of the hotel employees. So, it is evident from the above discussion that job characteristics if so designed up to the employees liking then the employee would be attracted more towards their job and feel like doing it with a great level of satisfaction and content.

4.1.2 Impact of Supervisor Support On Organizational Commitment

35

Organizational Commitment in Hotel Industry The correlation value of supervisor support with organizational commitment is 0.563 which is also significant up to the 0.01 level. The correlation results have clearly indicated that the more favorable behavior a supervisor holds towards its employees the more committed the employees will be. It has been evident from the hotel sector survey that supportive supervision has led to the more committed employees of the hotel sector. Similarly, supervisor plays a crucial role in motivating and retaining desired workforce within the organization through their supportive behavior which is when admired by his subordinates it compels them to keep on working with a supervisor who possesses a supportive work behavior towards its work force. A supportive supervisor also recognizes his employees when ever he feels it necessary.

4.1.3 Impact of Career Opportunities on Organizational Commitment

The co relational value of career opportunities with organizational commitment 0.637, here also the correlation is significant up to the 0.01 level. This significant value of correlation means that if the enhanced career opportunities are provided then the organizational commitment level will also be enhanced to a great deal. Being specific to our own research it has been evident from the value of correlation that the level of commitment of the hotel employees has been enhanced a great deal by enhancing the level of career opportunities provided to the hotel employees. Certainly employees would be feeling committed to those organizations where the jobs as well as the careers are very well defined as the employees will be getting frequent opportunities to grow. So, favorable career opportunities have increased the commitment level of the hotel employees.

4.1.4 Impact of Work Life Policies On the Organizational Commitment

The value shown by the correlation matrix of organizational commitment and work life policies is 0.540 where the correlation is significant up to the 0.01 level. This value of the result shows that work life balance also has a direct relationship with the enhancement of organizational commitment. The direct relationship here shows that the increase in one variable increases the other too. So, it has been evident that when the employees of hotel 36

Organizational Commitment in Hotel Industry industry have been provided with a balance in their work and family life they showed more loyalty and a greater level of organizational commitment. It is some what natural that if the family life of a person is not getting disturbed or interfered by his job his commitment level would definitely increase and this is what exactly happened in this case also. Hence, it means that job characteristics, supervisor support and career opportunities and work life policies all four when enhanced have a strong enhancement effect on the commitment level of the hotel employees.

4.2

Regression Analysis and the Discussions on the Research Results

Linear regression was calculated on four independent variables and organizational commitment as a dependent variable. In this regression analysis we have studied the impact of four independent variables that is job characteristics, supervisor support, career opportunities and work life policies on organizational commitment. TABLE 4.2 Regression results Independent variable Job characteristics Supervisor support Career opportunities Work life policies Beta .238 .131 .370 .227 t-value 3.167 1.766 6.190 4.922 Significance .002 .080 .000 .000

n=107; R square 0.665; Adjusted R square 0.652; F=50.709; significance F= 0.000 The regression analysis of the research results of hotel industry shows that the value of R Dependent variable= Organizational commitment square is 0.665 which is a very significant value and it means that that the impact of independent variables on the organizational commitment is 66%. It is very high percentage that the model which has been used is very significant and also signifies the impacts of job characteristics, supervisor support, career opportunities and work life policies on the level of organizational commitment of the hotel employees.

37

Organizational Commitment in Hotel Industry The dependent variables explain 50.709% of the variance in the organizational commitment which is indicated by the value of F. Of the independent variables, job characteristics (+), supervisor support (+), career opportunities (+) and work life policies (+) had a direct and a significant effect on organizational commitment. The significance of the value of job characteristics is 0.002 and that of both career opportunities and work life policies is 0.000 which shows a very high level of significance. Although the regression values of all the independent values are positive as well as quite significant but the result here also shows that the value for the supervisor support is not that much significant as the values of all the other three variables. Only the regression value for supervisor support is 1.76 that is under 2 and that is why it has not shown very much significant relationship with organizational commitment like other independent variable as, it is clear from the table that the significance of supervisor support as a variable is 0.080. So, we can say that job characteristics, career opportunities and work life policies have a more significant impact than the supervisor support. Moreover the value of F here is equal to 50.709 and its significance is 0.000. So, it is also evident from here that the results of regression compliment the significant impact of independent variables on organizational commitment. The Beta values here shows that the impact of job characteristics is 23%, supervisor support is 13%, Career opportunities is 37% and work life policies is 22% each on the dependent variable that is organizational commitment. So, after the regression analysis we can clearly say that all the independent variables have a significant impact on the dependent variable that is organizational commitment of the hotel employees. The reason behind such a significant impact of all the independent variables on organizational commitment indicated by the above analyses and discussions is that if any of the organization takes measures to look after its employees then the employees feel themselves valued by the organization and hence their commitment level is enhanced a great deal. So, this research on the commitment level of the hotel employees as well as the management signifies the fact that employees when provided with well defined and favorable job characteristics, supportive supervisor, career opportunities and work life balance the employee feel them selves a part of their respective hotels and try to contribute

38

Organizational Commitment in Hotel Industry their part in organizational developmental activities. Hence, we can say when the employees of the hotel sector felt that they are being valued they showed the higher sense of loyalty and commitment towards their hotels

4.3

Summary Chapter 4

The Correlation matrix is showing the relationship between organizational commitment and four of its independent variables which are job characteristics, supervisor support, career opportunities and work life policies. Results have shown that organizational commitment is highly dependent on all the four independent variables which are job characteristics, supervisor support, career opportunities and work life policies. The regression analysis of the research results of hotel industry shows that the value of R square is 0.665 which is a very significant value and it means that that the impact of independent variables on the organizational commitment is 66%. The dependent variables explain 0.66% of the variance in the organizational commitment. Of the independent variables, job characteristics (+), supervisor support (+), career opportunities (+) and work life policies (+) had a direct and a significant effect on organizational commitment. Only the regression value for supervisor support is 1.76 that is under 2 and that is why it has not shown very much significant relationship with organizational commitment like other independent variable. So, we can say that job characteristics, career opportunities and work life policies have a more significant impact than the supervisor support. Moreover the value of F here is equal to 50.709 and its significance is 0.000. So, it is also evident from here that the results of regression compliment the significant impact of independent variables on organizational commitment.

39

Organizational Commitment in Hotel Industry

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusion

The results of this study have clearly shown that the independent variables i.e. job characteristics, supervisor support, career opportunities and work life policies have a significant impact on the organizational commitment which serves as a dependent variable in this research. So, it must be concluded here that the independent and dependent variables

40

Organizational Commitment in Hotel Industry have a direct impact on each other that is the enhancement of one is the cause of the enhancement of the other. Results of correlation indicate that job characteristics, supervisor support, career opportunities and work life policies all four when enhanced have a strong enhancement effect on the commitment level of the hotel employees. In this regression analysis we have studied the impact of four independent variables that is job characteristics, supervisor support, career opportunities and work life policies on organizational commitment. Of the independent variables, job characteristics (+), supervisor support (+), career opportunities (+) and work life policies (+) had a direct and a significant effect on organizational commitment. Although according to the indication of the results the impact of supervisor support is not that much significant as the impact of the other three variables but overall we can conclude that the independent variables have a direct and significant impact on the organizational commitment. Now a days it has become crucial to have a committed and loyal work force as it is the work force whose loyalty can actually pay off in the long run to gain a competitive edge over other sectors of business. Shortly, we can conclude that hypothesis 1, 2, 3 and 4 each have been proved. That is 1. Job characteristics have a significant impact on the organizational commitment of hotel industry. 2. Supervisor support has a significant impact on the organizational commitment of hotel industry. 3. Career opportunities have a significant impact on the organizational commitment of hotel industry. 4. Work life policies have a significant impact on the organizational commitment of hotel industry. So, all of these four hypotheses have been successfully proved.

41

Organizational Commitment in Hotel Industry

So, the hotel sector can make it a part of their strategy to have committed employees and in order to achieve it all the factors that may ensure and enhance this commitment level should specially be taken care off. Hence, committed work force and management is the pillar of success and efforts should continuously be made by the hotel sector to strengthen this pillar. By doing this they would definitely be strengthening their organizational efficiency and effectiveness.

5.2

Recommendations

1. The employer should keep taking feed back from his employees in order to come to know how satisfied they are from the atmosphere provided by the organization. 2. If the employer comes to know that the satisfaction level of his employees is decreasing then he should try to find out the probable reasons and also the methods to eradicate them. 3. Employer should keep on enriching and enlarging the scope of the jobs of his employees to avoid monotony and boredom. 4. Employer should also keep on rotating the employees from one department to the other for varied grooming of their skills and knowledge 5. Employer should recognize his employee for a job well done 6. The employer should consider the career growth preferences of his employees. 7. Employer should introduce flexible employee related policies and no rigidity in any case shall be observed. 8. The employers should value his employee as an asset 9. Supervisor should perform a broader role, he should come up as a leader and provide career guidance to his employee not only about a particular job or department but on the whole. 10. The employer should reward his high achievers by providing training in the area them want to grow. 11. Optimum opportunities shall be provided to the employees to apply themselves. they should be independent to work.

42

Organizational Commitment in Hotel Industry 12. Resistance and restriction free atmosphere should be observed and any innovation from the employees should be welcomed. 13. Job characteristics should be well communicated to the employees and should be adjusted accordingly if the employees desire so.

5.3 5.3.1 Theoretical implications

Implications

Our study will provide some useful data for other researchers who want to investigate the level of organizational commitment in middle and upper level managers. Prior studies has contributed in investigating the effect of different variables on organizational commitment among employees of lower tiers. In order to expand the organizational commitment aspect it was necessary to explore it on top levels i.e. Middle and upper level tier in particular industry. This study has small sample size as we were targeting only top level employees among three hotels which made us reluctant for generalizations. The purpose of this study was to find support for our hypothesis that there is positive relationship between organizational commitment and four independent variables. In turn this information will help hotel industry to develop some strategies regarding job characteristics, career opportunities, and supervisor support and work life policies. In provision of these facilities only financial investment is not necessary. These organizations should have to pay high emphasis on their Human resource and there activities. To attract and retain the best pool of employees is dream of every organization. In this effort they have to provide employees all possible facilities to satisfy them and to retain a level of commitment among them. But only retention of commitment cannot give any organization competitive edge. They have to put some extra effort to make their employees satisfied, happy and committed.

43

Organizational Commitment in Hotel Industry For this reason hotels are providing different facilities to their employees based upon their policies and rules. Quality workforce is required to be retained within the hotel sector as well, like all the other sectors of business and in order to ensure quality workforce retention the hotel should look after the interests of its employees. They should be offered with ever new incentives to attract and retain desired work force, as work force of desired quality is the one that ensures success in the long run. So, hotels should also pay a special attention and interest towards their employees

5.3.2

Industry Implications

In a global service economy the workplace is changing. As there is a tremendous increase in the service sector, competition among the service industries is increasing at a very high rate. Customers and consumer are becoming more aware about their needs and wants and along that they understand very clearly how to get those demands and needs fulfilled. In this study we selected on 4 star and 5 star hotels which cater to a particular slot of people. These hotel provide luxuries and facilities to there customers according to their demands. In Pakistan and specifically in Rawalpindi and Islamabad there are only three hotels which are rated as 4 star and 5 star. As they are very less in number they face strong competition among them. Every hotel is trying to provide best possible facilities. In service industry many organizations are working to fulfill their customers satisfaction. To get competitive edge these organizations has to focus upon best possible Human resources. To improve their employees commitment level hotels should provide them with proper education , skills and knowledge.

44

Organizational Commitment in Hotel Industry In addition important job characteristics were identified. Employees should be provided with compatible job demands, there is also a need for explicit, accurate job descriptions and clear reporting policies, which should lead to greater role clarity and increased commitment. Employee should be provided with job knowledge, skills and satisfaction with there work context. Other points which should be emphasized by these hotels to enhance the willingness of employee to stay with the organization. The quality of work life has to be taken seriously by employers. Desire for a good quality of work life has led to increased interest in employee job satisfaction and organizational commitment. These organizations can improve commitment by offering more flexible working options and by implementing other family-friendly policies. Work/life policies include flexible work scheduling (e.g. part time work, and quitting times), family leave policies allowing periods away from work for employees to take care of the family matters, an child care assistance. Employees repay employers who provide work-family policies with higher levels of commitment. This study suggests that employees shall be provided with flexible work scheduling as this will lessen down their burden. Along that these hotels should improve their family leave policies and provide them with an attractive holiday packages. When a person is considering a long-term tenure to an organization, the notion of career prospects becomes an important link between that person and that organization. In our study we identified that most of the employees in these tiers are between 26- 30 and a very less % was present with long term tenure in these hotels. This is an important area for them to improve as people leave these hotels after a shorter tenure. So career opportunities can be provided by giving employees with wider experience, introducing mores systematic procedures for identifying potentials, encouraging promotions, providing guidance on career paths, providing required trainings, can arrange foreign trainings. Provision of foreign tours and trainings in other countries will definitely increase their chances to grow

45

Organizational Commitment in Hotel Industry beyond boundaries. Career prospects may include assessments about likelihood of future job satisfaction in either the current job or other jobs in the same organization. Friendly and supportive relationships with coworkers and supervisors tend to increase commitment. Supervisors should provide training and career development plans to all subordinates, and recognize each employees potential and capabilities to encourage an organizational culture. This study suggests that the quality of exchange relationships affect subordinates commitment and good will. Policies and activities to encourage staff loyalty and stability should be integrated into the culture and everyday life of the organization, so that committed employees are the norm, rather than the exception. Employers should keep a check on how many employees have shifted the organization in a certain time period. They should also try to find out the reasons and their remedies. Employers should benchmark certain organizations where the level of commitment is high and try to follow them.

5.4

Limitations of the Study

We have just selected four independent variables that is job characteristics, supervisor ssupport, career opportunities and work life policies to study how they impact on the level of organizational commitment whereas, there are many other factors which may affect the level of commitment which we have not taken for are research due to time constraint .Another limitation is that hotel sector from all over Pakistan is not taken instead There are certain hotels from certain geographical areas of Pakistan. More over our sample is also limited as we are only focusing up on the managerial tier of the hotel industry.

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Organizational Commitment in Hotel Industry

REFERENCES
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Organizational Commitment in Hotel Industry Chen, J.C., Silverthorne, C. & Hung, J.Y., (2005), Organization communication, job stress, organizational commitment, and job performance of accounting professionals in Taiwan and America Leadership & Organization Development Journal. Vol 27, No.4, p. 242-249 Chan, S. Hup ., (2005). Organizational Identification and Commitment of Members of Human Development Organization. Journal of Management Development. Vol 25, No.3, p. 249-268 Smith, Gregory. R., & Cannon, (1996). Becoming an Employer of Choice: Assessing Commitment in the Hospitality Workplace. International Journal of Contemporary Hospitality Management. 8/6, p.39. Jacobsen, I. D..,(2000). Managing increased part-time: does part-time work imply parttime commitment? Managing Service Quality. Vol 10, No.3, p. 187200 Pence., (1996). Is your organization really committed to teams? A self-test for measuring your organizations commitment. Empowerment in Organizations. Vol 4, No.2, p. 2228 Kazlauskaite, R., Buciunien, I., & Turauskas, L.,(2006). Building Employee Commitment in the Hospitality Industry. Baltic Journal of Management. Vol 1, No.3, p.300-314 Labatmediene, L., Endriulaitiene, A., & Gustainiene, L., Individual correlates of Organizational Commitment and Intention to Leave the Organization. Baltic Journal of Management . Vol 2, No.2, p. 196-212 Mottaz, J., (1991).An Analysis of the Relationship between Attitudinal Commitment and Behavioral Commitment Sociological Quarterly, 30, 143-158 Balfour, D.L., & Wechsler, B., (1991). Performance, and Productivity in Public Organizations.Public Productivity & Management Review. Vol 14, No.4, p. 355-367.

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Chay, Y.W., & Aryee, S., (1999). Potential Moderating Influence of Career Growth Opportunities on Careerist Orientation and Work Attitudes: Evidence of the Protean Career Era in Singapore. Journal of Organizational Behavior. Vol 20, No.5, p. 613-623. London, M., (1983).Toward a Theory of Career Motivation. The Academy of Management Review. Vol 8, No.5, p. 620-630. Baugh, S.G & Roberts, R. M, (1994). Professional and Organizational commitment among Engineers: Conflicting or Complementing? IEEE Transactions on Engineering Management. Vol 41, p. 108-114. Harold, L. A., & James, L. P., (1981). An Empirical Assessment of Organizational Commitment and Organizational Effectivenesss. Administrative Science Quarterly. Vol 26, p. 1-14. Grover, S. L. & Crooker, K. J, (1995). Who appreciates family responsive human resource policies: the impact of family friendly policies on the organizational attachment of parents and non parents. Personnel Psychology, Vol 48, p. 271-289. Trice M, Beyer M & Stevens M, (1978). Assessing personal role and organizational predictors of managerial commitment: The academy of management journal. Academy of Management, Vol. 21, No. 3, p. 380-396. Mottaz J. C, (1987). An analysis of relationship between work satisfaction and organizational commitment: Midwest sociological society. The sociological quarterly, Vol. 28, No. 4, p. 541-558. Wharton S & Loy B, (2004). Organizational commitment and constraints on work family policy use: University of California press. Sociological Perspectives, Vol. 47, No. 3, p. 243-267.

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Witt A, Kaemar M & Andrews C, (2001). The interactive effects of procedural justice and exchange ideology on supervisor rated commitment: John Wiley Sons. Journal of organizational commitment, Vol. 22, No. 5, p. 505-515. Labianca G & Gray B, (2000). A Grounded model of organizational schema change during empowerment: Organizational Science. Informs, Vol. 11, p. 235-257. Aquino K & Bommer H, (2003). Organizational citizenship behavior and workplace victimization: Organizational Science. Informs, Vol. 14, p. 374-385. West A, Patterson G & Griffin A, (2001). The role of supervisor support: John Wiley and sons. Journal of organizational behavior, Vol. 22, p. 537-550. Moon J..M, (2000). Organizational commitment revisited in new public management motivation, organizational commitment, sector and managerial level: Sharpe Incorporation. Public performance and management review, Vol. 24, p. 177-194. Locke A, Latham P & Erez M, (1988). The determinants of goal commitment: Academy of management. The academy of management review, Vol. 13, p. 23-39. Bimbaum D & Somers J.M, (1998). Work related commitment and job performance: John Wiley and sons. The journal of organizational behavior, Vol. 19, p. 621-634. Kidron A, (1978). Work Values and organixzational commitment: Academy of management. The academy of management journal, Vol. 21, p. 239-247. London M, (1983). Towards a theory of career motivation: Academy of management. The academy of management review, Vol. 8, p. 620-630.

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Organizational Commitment in Hotel Industry Karatepe M & Kilic H, (2007). Relationships of supervisor support and conflicts in the work family interface with the selected job outcomes of front line employees: School of tourism and hospitality management, Eastern Mediterranean University Gazimagusa. Tourism management, Vol. 28, p. 238-252. Millward J. & Hopkins J (1998). Psychological contracts organizational and job commitment: Winston and sons. Social psychology European research institute, Vol.16, p. 1530-1556. Aryee S & Chay W (1999). Potential moderating influence of career growth opportunities on careerist orientation and work attitudes: John Wiley and sons. Journal of organizational behavior, Vol. 20, p. 613-623. Thomton R, (1970). Organizational involvement and commitment to organization and profession: Johnson graduate school of management. Administrative science quarterly, Vol. 15, p. 417-426. Dunn. G, Boxx. R& Odom. Y, (1990). Organizational cultures, commitment, satisfaction and cohesion: Sarpe Inc. Public Productivity and management review, Vol. 15, p.157-169. Jans. A. N, (1989). Organizational commitment career factors and career life stage: John Wiley and sons. Journal of organizational behavior, Vol. 10, p. 247-266. Trice H & Ritzer G, (1970). On the problem of clarifying commitment theory: University of North California press. Social forces, Vol. 48, p. 530-533. Randall M. D, (1988). Multiple Roles and Organizational Commitment: John Wiley and sons. Journal of Organizational behaviour, Vol. 9, p. 309-317. Stebbins A. R, (1970). On Misunderstanding the concept of commitment- A Theoretical Clarification: University of North Carolina press. Social Forces, Vol. 48, p. 526-529.

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Organizational Commitment in Hotel Industry

Cramer D, (1996). Job Satisfaction and Organizational Continuance Commitment: A TwoWave Panel Study: John Wiley and sons. Journal of organizational behaviour, Vol. 17, p. 389-400. Long J. R, (1980). Job Attitudes and Organizational Performance under Employee Ownership: Academy of Management. The Academy of Management Journal, Vol. 23, p. 726-737. Shore M. L, (1990). Job and Organizational Attitudes in relation to Employee Behavioural Intentions: John Wiley and sons. Journal of Organizational behaviour, Vol. 11, p. 57-67. McShane & Glinow, (2000). Organizational Behavior. Irwin and Mc Graw Hill, New York. Krietner & Kinicki, (2001). Organizational behavior. Irwin and Mc Graw Hill, New York.

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Organizational Commitment in Hotel Industry

APPENDIX TABLES
3.3.1

Tenure
Frequency 48 24 10 14 6 5 107 Percentage 44.8 22.4 9.3 13.0 5.6 4.6 100

Table 3-1 Frequency: Tenure Tenure (years) 1-5 6-10 11-15 16-20 21-25 26-30 total

3.3.2

Qualification
Frequency 50 53 4 107 Percentage 46.7 49.5 3.7 100

Table 3-2 Frequency: Qualification Qualification Master Bachelor others Total

3.3.3

Home language
Frequency Percentage

Table3-3 Frequency: Home Language Home language

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Organizational Commitment in Hotel Industry Punjabi Urdu .Pushto Shina Hindko Potohari Others Total 3.3.4 28 51 11 4 9 2 2 107 26.1 47.6 10.2 3.7 8.4 1.8 1.8 100

Marital status
Frequency 74 33 107 Percentage 69.1 30.8 100

Table 3-4 Frequency: Marital status Marital status Married Single Total 3.3.5

Gender
Frequency 84 23 107 Percentage 78.5 21.4 100

Table 3-5 Frequency: Gender Gender Male Female total

3.3.6

Age
Frequency 15 32 24 9 13 6 4 4 107 Percentage 14.0 29.9 22.4 8.4 12.1 5.6 3.7 3.7 100

Table 3-6 Frequency: Age Age 20-25 26-30 .31-35 36-40 41-45 46-50 51-55 56-60 Total

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Organizational Commitment in Hotel Industry

Table 4.1 two tailed correlation table is given as under: mean 2.82 2.78 2.93 2.70 2.90 Stdev 0.41 0.43 0.41 0.44 0.56 OC 1 0.650** 0.563** 0.637** 0.540** JC 1 0.629** 0.473** 0.392** SS 1 0.380** 0.376** CO WLP

OC JC SS CO WLP

1 0.196*

OC=organizational commitment, JC=Job characteristics, SS=Supervisor support, CO= Career opportunities, WLP=Work life policies.

**Correlation is significant at the 0.01 level. *Correlation is significant at the 0.05 level.

TABLE 4.2 regression results Independent variable Job characteristics Supervisor support Career opportunities Work life policies Beta .238 .131 .370 .227 t-value 3.167 1.766 6.190 4.922 significance .002 .080 .000 .000

n=107; R square 0.665; Adjusted R square 0.652; F=50.709; significance F= 0.000 Dependent variable= Organizational commitment

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Organizational Commitment in Hotel Industry

Questionnaire
Dear Respondent You are kindly requested to respond to the statements in the following questionnaire. The statements are related to the level of organizational commitment possessed by the managerial tier. Your responses are of great importance as this survey forms part of a study of the aspects mentioned above. We therefore value your cooperation highly. On the following pages you will find several kinds of questions. Different instructions will precede the various set of statements. Please follow the instructions carefully. Please ensure that you respond to every question in the questionnaire. There are no right and wrong answers to any question. We are only interested in your personal opinions. The right answer to any question is your frank and truthful response. Your answers will be treated in strict confidence and will only be used for research purposes. Your name shall not appear any where in the document. A. Please complete the following biographical information. This information will only be used for statistical purposes. 1. How long have you been employed at this company (in completed years)?

2. What is your highest qualification? 56

Organizational Commitment in Hotel Industry

Bachelor degree or equivalent Master degree or equivalent Doctoral degree or equivalent Other specify 3. What is your home language?

1 2 3

4. What is your marital status?

5. What is your gender? Male 6. What is your age (years)? B. Please respond to the following questions on your commitment to the organization. Use the scale provided below each statement to reflect your view.

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

Female 2 2 2 3 3 3 4 4 4

1 1 1

5 5 5

1 7. This organization has a great deal of personal meaning for me? 8. Right now staying with my organization is a matter of necessity? 9. It would be very hard for me to leave my organization, even if I wanted to? 10. I feel that I have too few options to consider leaving this organization? 11. I do not feel emotionally attached to this organization? 1 1 1 1

2 2 2 2

3 3 3 3

4 4 4 4

5 5 5 5

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5 57

5 1 2 3 4

Organizational Commitment in Hotel Industry 12. I really feel that this organizations problems are my own? 13. I dont feel like part of a family at my organization? 14. I dont leave my organization right now as I have a sense of obligation to its people? 15. I dont feel a strong sense of belonging to my organization? 16. This organization deserves my loyalty? 17. I would be very happy to spend the rest of my career with this organization? 18. If I had not already put so much of myself into this organization, I might consider working elsewhere?

C. Please respond to the following questions related to the characteristics of your job. 7. The job requires me to use a number of complex or high level skills? 8. The job denies me any chance to use my personal initiative in carrying out my work? 9. The job is quite simple and repetitive? 10. The job gives me considerable opportunity for independence in how I do the work?

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

D. Please respond to the following questions on your supervisor.

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Organizational Commitment in Hotel Industry

Strongly Agree Agree Neutral Disagree Strongly disagree

23.

My supervisor looks for opportunities to praise good work both privately and in front of others? I feel undervalued by my supervisor?

24.

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

25. The supervisor almost never gives me any feed back about how well I complete my work? 26. My supervisor rewards a good idea by implementing it and giving responsible employees credit? 27. My supervisor seldom recognizes an employee for work well done? 28. My supervisor often lets me know how well he thinks I am performing my job?

E. Please respond to the following career development questions. 29. My chances of being promoted are good? 30. There are enough career opportunities for me in this organization? 31. Job vacancies in this organization are usually filled by people from out side the organization? 32. It would be easy to find a job in another department? 33. An employees career development is important to this organization? 34. An employee who applies for another job has a better chance of getting that job than some one from out side the organization who applies for the job?

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

1 1 1 1 1 1

2 2 2 2 2 2

3 3 3 3 3 3

4 4 4 4 4 4

5 5 5 5 5 5

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Organizational Commitment in Hotel Industry

F. Please respond to the following questions on your balance between work and life. 35. I often feel like there is too much work to do? 36. My work schedule is often in conflict with my personal life? 37. My job affects my role as a spouse or a parent? 38. My job has negative effects on my personal life?

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

1 1 1

2 2 2

3 3 3

4 4 4

5 5 5

Thanks for your cooperation!!

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Organizational Commitment in Hotel Industry

61