Labour Turnover In Hotels Commerce Essay

Employee turnover is a much studied trend by many authors. It is of interest to organisations and theories because it is significant and potentially costly (Mobley, 1982& Price, 1977). Since, it also describes the end result of a decision process, most company which value their human resources aim at finding a means to alter the decision process and hence retain their employees.(Lee and Mitchell 1991),

Labour Turnover in Hotels

Many researchers have suggested that employee turnover is among the highest in the hospitality industry. Employee turnover is particularly important in the hospitality industry due to high levels of consumers having direct employee contact. In addition this phenomenon of labour turnover is very critical and costly (Bonn & forbringer, 1992).

In most case labour turnover has been detriment of the organisation, hence the literature has identified turnover to be both functional and dysfunctional (Johnson, Griffeth & Griffin, 2000). In some cases labour turnover has been beneficial for firms related to performance due to some employee deliver poor performance, thus this voluntary quit by the employee leaves for better performing employee.(Mobley1982)

SOURCE FOR TURNOVER INTENTION

Turnover intention has been used in various debates in past research. That is the employee Mobley (1977) intent to stay (or leave) as the last in a sequence of withdrawal cognition in which an employee actively considers quitting and begins searching for alternate employment. Empirical evidence supports that the idea is the immediate precursor to actual turnover behavior (Bluedorn, 1982; Griffeth & Hom, 1988; Steel & Ovalle, 1984; Tett & Meyer, 1993).

Moreover turnover intention is an appropriate dependent variable because it is linked with actual turnover Shore and Martin (1989). Authors such as Price and Mueller (1981) have argued that the use of turnover intention over actual labour turnover as it is more complex to determine than intentions as there are many external factors that affect turnover behavior.

2.1 TRADITIONAL VOLUNTARY TURNOVER MODELS

In the traditional model involves the voluntary, satisfaction and motivation-turnover. Many studies have been carried out to explain on the causes and consequences of voluntary turnover and have been subject by two distinct orientations (Lee & Mitchell, 1994). There are the traditional models that are governed by the fact that voluntary turnover has many heredity and cannot be limited to only one or even few factors. On the other hand, the main idea will be center is on the satisfaction- turnover link which is covered by non- traditional.

Many traditional models of turnover(e.g. March & Simon, 1958; Mobley, 1977; Price,1977; Steers & Mowday,1981; Price & Mueller,1981) include two major categories of interpreter of the variables, one emphasizing job attitudes (like satisfaction and commitment) and the other one emphasizing the alleviate of movement (reflected in perceived alternatives and job search behaviour).

2.1.1 MARCH AND SIMON MODEL

According to a study done by Besish (2005), most of the research done on labour turnover reproduce a similar vein of thought in the fact that most models of turnover are resulting from ideas of the March and Simon model (1958). The model stress on the supposed ease of movement, known as the perceived availability of job alternatives in today's literature, and the interest of leaving one's job, that is labour turnover

The traditional perception suggests that people become dissatisfied with their job, search for alternatives, compare those options with their current job using an expected- value- like decision process and leave if any of these alternatives are judged better than their current situation (Mobley, 1977). Hence, traditional model's calculation of the aim for an employee to leave his current job is based on the job attitudes combined with the new job perspectives.

2.1.2 INTERMEDIATE LINKAGES MODEL (MOBLEY, 1977)

The intermediate linkages Model by Mobley (1977) has also bring its contribution to the turnover literature by stressing the number of significant sources of influence the decision of a worker to leave his job. The intermediate Linkages Model also point out that working attitude are directly related on demotivation in which the worker considers to quit and starts seeking for new employment. However, the job attitudes are only indirectly related to actual turnover behaviours (Mowday, koberg, & McArthur,1982; Griffeth & Hom, 1988; Steel & Ovalle, 1984; Tett & Meyer, 1993).

Empirical supporting evidence for this model by While Jackofsy & Salter(1981) find that the use of the five variables from Mobley's model(job satisfaction, expectation find an another job, search behavior, thoughts of quitting, and intention to quit) is efficient at determining labour turnover, Hom & Griffeth (1991) find the model to be weak in its ability to predict voluntary turnover.

2.1.3 MOBLEY, HORNER AND HOLLINGSWORTH MODEL (1978)

The Horner, and Hollingsworth model of voluntary turnover (1978) is an extension on the Mobley model of 1977, that suggested causal linkage in this model begins with job dissatisfaction in which the worker think to quit the company. This extension of the 1977 model suggests that the intention to search an alternative job and plan to quit are the most instant predictors of turnover.

Moreover Mobley, Griffeth, Hand, and Meglino model (1979) also included labour market, organizational, fob, cognitive and individual variables (i.e., satisfaction, attraction-expected function in the actual employment, and attraction- expected utility for alternative jobs) as basic parts of the voluntary turnover process. Additional variables entered into the model center on factors external to the person. This gave rise to the pull theory, which suggest that factors external to the person play a important role in "pulling" the worker from the current firm Price Model(1977) based on Expectancy theory

Several causal models that explain the intention of an employee to leave or stay has been developed following Mobley's (1977) initial model. The models are frequently based on the expectation theory which leads to the idea that people "enter work organizations with expectations and values, and if these expectations and values are met, they will likely remain and settle down within the organization". (Kim et al, 1996)

In agreement with the expectancy theory, turnover decision can be explained by investigating in the relationships among structural properties of work, psychological and environment variables

(Iverson & Roy, 1994)

Price (Price &Mueller, 1986) developed a model of based on expectancy theory. The model suggests that perceptions of the work environment (e.g. organizational structure) and perceptions of the external environment (e.g. availability of alternate jobs) explain intend to stay. With series of studies using many samples from various occupational groups, Price and associates (Kim et al, 1996; Mueller & Price, 1990) found that work environment variables have an indirect effect on intent to stay through job satisfaction and organizational commitment. This relationship has been approved by other researchers (Lee & Mowday,1987) who have found that perceptions of the work environment indirectly affect intent to stay (or leave) through satisfaction and commitment.

2.1.4 STEERS AND MOWDAY MODEL (1981)

Another striking model of voluntary turnover to appear was the Steers and Mowday model (1981) which also included in the model including cognitive variables. Unlike to Mobley, non-work variables were also included in the model including leisure time political influences that can influence job attitudes and organization attachment (Cohen, 1995; Mitchell et al; 2001; Rouse, 2001).

The Steers and Mowday (1981) model has clearly define the role of available information about a job and an organization, introduced job performance as an influence on affective responses, and considered job attitudes other than satisfaction as antecedents to an employee's intentions to leave. In regard that employee have the intention to quit an organization, this model suggests non-work factors had greater impacts than did previous research. Steers and Mowday also recognized the possibility that dissatisfied employee may try to change a situation before leaving.

2.2 NON TRADITIONAL MODELS OF EMPLOYEE TURNOVER

According to the traditional models of voluntary turnover, it assumes that an employee will follow a sequence of linear steps leading towards turnover. However to construct for voluntary turnover, information technology professionals represent a unique trend that may not stick to traditional models (Rouse, 2001).

2.2.1 Justification for the research model

It is uncertain which model of voluntary turnover is more effective and efficient at predicting labour turnover in organisations, though both are very useful in theory and practice. Many research and studies have been done to determine the strength of the traditional model of turnover which consists of job satisfaction, organisational commitment, and perceived availability of job alternatives.

Traditional models of turnover have accounted for between 15-25% of the total variance of voluntary turnover. Though the percentage is significant, it must be improved upon for the benefit of the organisation in dealing with the costs of voluntary turnover. Use of the existing models in organisations can be difficult, as some of the factors within the traditional models of turnover are complicated for organisations to influence.

When an employee leaves, this can have a multiplier effects that not only impact on the organisation, but also the individual employee and wider society (Mobley 1982:15-31) there is justification for studying this phenomenon. Despite the enormous literatures and findings on turnover in organisations (Price1977; Mobley 1982), there is as yet no commonly accepted account or framework for why people choose to leave their organisation. However there is some human resources factor that helps to know why people do choose to quit their current jobs.

2.2.2 RELATING MODEL OF EMPLOYEE TURNOVER (1994)

Base on Lee and Mitchell's relating model of voluntary turnover (lee et al., 1999) is typical of an instinctual model. The model focuses the concern that traditional models seem to only explain some of the factors involving voluntary employee turnover. Research had also focus on external factors such as availability of alternatives for employee, and supply and demand; or internal factors concerning to individual's perceptions and attitudes (Griffeth &al.2006). The Lee and Mitchell 1994) model put emphasis on both perspectives.

The model depends on the principle that people quits their organization after they have analyzed the reasons for quitting. These reasons have great importance as well how they affect the turnover decision of an employee is dependent on the individual. Lee and Mitchell(1994) propose that an event of some kind will cause employees to assess their current employment and this assessment may lead to a decision path about staying with the organization or leaving it.

Lee and Mitchell (1994) suggest a model of voluntary turnover to understand the concepts that explain why an employee would consider a decision to leave an organization (Griffeth & al, 2006). However, this model of turnover assume that employees will always calculated, rational, decisions concerning their current and future job opportunities. Assumption like this will fundamentally blemished, however, with the research done by Herb Simon in the 1950's Showing that humans were not typically rational decision makers (Simon,1955; Simon,1956)

However, Beach (1990) also argues that individual's fails have the cognitive resource to a proper evaluation for all incoming information that is rather to be cautious in evaluating other opportunities the decision is made very quickly and simply.

2.3.0 FACTORS RELATING TRADITIONAL TURNOVER MODELS

2.3.1 ORGANISATIONAL COMMITMENT

Porter et al (1974) study has also demonstrated the importance of company commitment in explaining turnover. From then on, organizational commitment has been frequently explored in the turnover literature, and like job satisfaction, has been shown to be adversely related to turnover (e.g. Wng. Chun &Law,1996; Arnold& Feldman,1982; Bluedorn, 1982; Porter et

al,1974)

According to Meyer and Allen (1991), organizational commitment consists of three dimensions, namely:

I. Active commitment

II. Continuance commitment

III. Normative commitment

The commitment that an employee has towards its organisation can be a strong fact of how well the organization is able to retain their most valued employees. When assessing different facets of organization commitment towards its employees has been found that having successful commitments to an organization is the best indicator of retention (Jaros,1997; Meyer, Allen, & Smith, 19933; Somers, 1995; Whitener & Walz, 1993) .

2.3.2 Justification for the research model

It is uncertain which model of voluntary turnover is more effective and efficient at predicting labour turnover in organisations, though both are very useful in theory and practice. Many research and studies have been done to determine the strength of the traditional model of turnover which consists of job satisfaction, organisational commitment, and perceived availability of job alternatives.

Traditional models of turnover have accounted for between 15-25% of the total variance of voluntary turnover. Though the percentage is significant, it must be improved upon for the benefit of the organisation in dealing with the costs of voluntary turnover. Use of the existing models in organisations can be difficult, as some of the factors within the traditional models of turnover are complicated for organisations to influence.

When an employee leaves, this can have a multiplier effects that not only impact on the organisation, but also the individual employee and wider society (Mobley 1982:15-31) there is justification for studying this phenomenon. Despite the enormous literatures and findings on turnover in organisations (Price1977; Mobley 1982), there is as yet no commonly accepted account or framework for why people choose to leave their organisation. However there is some human resources factor that helps to know why people do choose to quit their current jobs.

2.3.3 JOB SATISFACTION

The link between job satisfaction and the turnover has been meticulously investigate in turnover literature. It is assumed that likelihood of the employee staying with an organization is contingent upon how satisfied the employee is(Mitchell et al,2001). Various studies has report a constant and negative relationship between job satisfaction and turnover (Cotton & Tuttle, 1986; Arnold& Feldman, 1982; Mobley, 1982; Price, 1977). Having the dissatisfaction feeling, people who get more opportunities to pursue employment elsewhere will do so ( Mitchell et al,2001).

Although the constantly found that job dissatisfaction correlates with intension to leave (Cotton & Tuttle, 1986;Jaros,1997;Lee & Mitchell,1991), job satisfaction alone has been found to account for small percentage of the total variance I a turnover model-less than 15%(Blau & Boal,1989).However, there is the fact that the relationship between job satisfaction and turnover is not stronger does not imply that satisfaction should not be measured.(Mobley,1982)

2.3.4 JOB ALTERNATIVES

Mobley (1977) suggested that searching for a new job will always leads to an intention to leave an organisation, Steers and Mowday (1981) propose that intention to leave precedes searching for job alternatives. The need for job alternatives will also allows higher performance to employees who to seek employment elsewhere provided they feel their current situation is not favourable to their needs. This trend known, as "ease of movement" has been assessed quite often in the past literature ( Gerhart,1990; Trevor,2001; Holtom, 2004). Ease of movement cannot be controlled directly by the organization, which can prove to be tricky for the organization when retaining high quality employees is great importance.

2.4 FACTORS FROM NON- TRADITIONAL TURNOVER MODELS

2.4.1 ORGANISATIONAL LINK

"Links" put in connections between an individual and an organisation. These connections may influence the employee likely to stay or leave the organization. According to Lee and Mitchell, links refer to the formal and informal relationship that an individual has to the job and organisation, and to the community.

2.4.2 ORGANISATIONAL FIT

"Fit" relates to an individual's sees the right opportunities and satisfaction matches within the organisation as well as the surrounding environment and community. Thus, the stronger the fit, the more likely the individual will stay.

2.4.3 ORGANISATIONAL SACRIFICE

"Sacrifice" is characterized by the individual's cost of leaving. Sacrifices are benefits and perks that would be given up if the individual chooses to leave the organisation. Thus this comprise travel opportunities, rewarding work load , and retirement benefits.

2.5 HR FACTORS INFLUENCING EMPLOYEE TURNOVER.

Various studies on job satisfaction of workers and has come up with a two- factor approach, Motivation- Hygiene Theory. (Hertzberg 1959, 1966) The theory debates that there are satisfiers, also known as "motivators", and dissatisfiers, known as "hygiene", within the job and the job environment. Herzberg (1969) also referred that there are motivators such as "basic factors" and hygiene as "extrinsic factors." The basic factors make the employee to be satisfied and hence to give higher performance as compare to the extrinsic factors create dissatisfaction and prevent optimum performance, hence making the employee to be dismotivated and eventually making the employee to quit the organization.

2.5.1 CAREER OPPORTUNITY AND ADVANCEMENT

Many research which has been done hve pointed out that employee tend to quit the organization towards their commitments id due to the lack of training investment by the organization that is skill acquisitions and career development (Tsui et al., 1997). In the past years, a "career difference" has occurred that is there has been a change in career management from the organisation- based careers to the "protean career" (Hall& Associates,196).

The Protean career refers to the fact that employee's feel it is the time to be in charge of the career such that the employee does manage his or her career rather by the organization. It is now the person's own personal values and needs that are the driving forces and psychological success, not the external factors.

Thus, organisations need to provide the appropriate opportunities for the individuals to be able to advance in their career. By so doing, the employee would not feel the strong need to move to other organization field.

2.5.2 REWARD AND RECIGNITION

Large numbers of literature and authors have put great importance of rewarding the performance of an employee and its impact upon the individual as a result creating the desire to stay or to leave the organization. (e.g. Dreher, 1982; Jackofsky, 1984). Compensation do refers to the monetary rewards given by the company to an employee for the good performance. Whereas on the other hand, refers to the recognition that an employee gain in term of an extra effort put. For example a mail of appreciations from the management.

2.5.3 JOB ENVIRONMENT

The causes of job satisfaction lie with both the employee and the workplace. The characteristics of the employee and the work environment interact and determine the level of job satisfaction or job dissatisfaction (Spector,1997). According to a research carried out by Xing & Yang (2005) in Singapore, they found that the satisfaction of working environment has significant effect on one's intention to change jobs and that an employee who is contended with his working environment is very likely not to consider changing employment. Thus, it has been statistically proven that the working environment is negatively related to an individual's action of looking for another job(Xong and Yang,2005)

2.5.4 INDIVIDUAL CHARACTERISTICS (AGE AND TENURE)

Numerous studies have recognized age as a factor that could be of importance in influencing the turnover decision of employees (e.g. Arnold & Feldman, 1982; Cotton& Tuttle, 1986). Moreover tenure has been recognized as a covariant of age (Bedeian et al., 1992; Kacmar and Ferris, 1989), and consequently its control is similar to that of age.

Several research studies came with the conclusion that there is a negative relationship exists between tenure and turnover (e.g. Steers, 1977). Research has indicated that relatively high turnover occurs among new employees (Mobley, 1982). As an employee's status increases within the organisation, the formal benefits such as compensation and promotions and informal benefits status will also increase. With these benefits, employees with higher tenure are likely to stay in their organisation for fear of losing these benefits upon entry into a new organisation (Hellman 1997).

2.5.3 COMMUNICATION

Communication in an organization is vital for the employee as it is the factor which connects the management to the employees. Hence strong communication systems from the top management to lower floor workers tend to reduce the labour turnover (Labov, 1997). Employees feel comfortable to stay longer in positions where they are involved in some level of decision-making process such that they have access to information and hence fully understand the issues that affect their working environment (Magner et al.,1996). On the other had lack of openness in sharing information often leads to employees making decreases and the confidence they have in management. Hence making the employee to be more susceptible to leave the company.

2.5.4 AIMS FOR THIS RESEARCH

Numerous research done up on the literature came to the same conclusion that any organisation need a source of man power to function. That is labour is consider as one of the four factors that make an industry to run. (Bannock, Baxter and Davis 1988). When an employee leaves a particular firm, this creates a multiplier effect that not only impact on the organisation, but also the individual employee and society (Mobley 1982:15-31) there is explanation for studying this phenomenon. Current explanations and studies of labour turnover have failed to offer either analytical or explanatory power.

Although we do have numerous literatures on turnover in organisations (Price1977; Mobley 1982), yet there is no universally accepted account or data for why people choose to quit an organisation. This prohibits understanding the phenomenon after the event, yet neither is there an accepted means of assessing the likelihood of an individual's deciding to leave in the future (Terborg and Lee 1984), which prohibits prediction of turnover.

2.5.5 RESEARCH HYPOTHESIS

The main objective for this research was to study the phenomena of labour turnover in the hotel industry. Hence to understand these factors with the help of various literatures on labour turnover a research hypothesis has been formulate to have a better understanding up on the followings the first hypothesis is to find out the relationship between labour turnover and pay condition. The second hypothesis is the relationship between labour turnover and the level working conditions. The third hypothesis whether there is a direct relationship between labour turnover and the level of leadership. And the fourth hypothesis whether there is a direct relationship between labour turnover due job dissatisfaction