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FACTORS AFFECTING EMPLOYEE'S MOTIVATION IN
HOSPITALITY INDUSTRY:
THE CASE OF LUMBINI TANDOORI RESTAURANT
A Seminar Paper
S...
DECLARATION
I, Rajkumar Adhikari declare that the contents of this Seminar paper represent my own
unaided work, and that t...
VIVA -VOCE SHEET
We have conducted the VIVA VOCE Examination of the seminar paper.
Submitted by:
Rajkumar Adhikari
Entitle...
ACKNOWLEDGEMENT
I express my gratitude to Purbanchal University for providing me the opportunity to conduct
a study on hos...
ABSTRACT
Today it is clear that businesses give importance to factors that increase employee’s
motivation. As the hospital...
INTRODUCTION
Motivation
Today, to remain standing in competitive world, hospitality businesses need both to increase
their...
Theories of Motivation
1. Maslow’s Hierarchy of Needs
Abraham Maslow’s theory proposed that human beings had different lev...
2. Theory X and Theory Y
The Theory Y assumptions (Douglas McGregor, 1960) about people and their work created
Space for b...
Why Motivate Employees?
A successful organization can generally trace its success to motivated employees. A look at
the sy...
LITERATURE SURVEY
According to some previous researches, it is seen that factors that affect the employees of
hotel indust...
METHODOLOGY
The study was carried out based on both primary and secondary data. Primary data was
collected from three diff...
FINDINGS AND EVALUATIONS
Demographic Information of the Sample Respondents
The culture of Nepal is a diversified and multi...
CONCLUSION
The study attempted to identify key factors and indicator that affect the employee's
motivation working at Lumb...
REFERENCES
International Journal of Contemporary Hospitality Management, 20 (2):228-234. Chan, S.W
E., & Wong, S. C.K. (20...
Appendix A
EMPLOYEE MOTIVATION SURVEY
Instructions: Please Circle the Appropriate Answer.
Demographic questions:
1. Gender...
Appendix: B
Factors affecting Motivation of employee in Hospitality Industry.
1. Employees must be provided social facilit...
D. Unimportant
E. Certainty Unimportant
5. Team work adds more to the motivation.
A. Very Important
B. Important
C. Indeci...
Appendix: C
Demographic information Result
Table 1: Demographic Information table of the sample Respondents
Culture Freque...
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FACTORS AFFECTING EMPLOYEE'S MOTIVATION IN HOSPITALITY INDUSTRY: THE CASE OF LUMBINI TANDOORI RESTAURANT

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Justification of the study
This study examined the concept of employee motivation as a mean for delivering superior service quality in the hospitality industry as well as other similar industries. This paper provides a framework for managers to use to enhance their understanding of employee motivation and its sources. A successful quest for service quality can be the difference between success and failure for many service organizations. In today’s competitive environment, customers are always looking for better service, more knowledgeable support, faster response time, and lower prices. Service organization that allow their employee productivity standards to deteriorate by not encouraging improvement in the volume and quality of output, will see their customer base dissolve.

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FACTORS AFFECTING EMPLOYEE'S MOTIVATION IN HOSPITALITY INDUSTRY: THE CASE OF LUMBINI TANDOORI RESTAURANT

  1. 1. FACTORS AFFECTING EMPLOYEE'S MOTIVATION IN HOSPITALITY INDUSTRY: THE CASE OF LUMBINI TANDOORI RESTAURANT A Seminar Paper Submitted by Rajkumar Adhikari Roll No.: 19 MBA Second Semester Kantipur International College Submitted to Faculty of Management Purbanchal University Biratnagar, Nepal In partial fulfillment of the requirements for The degree of Master of Business Administration (MBA). Feb, 2015 Kathmandu
  2. 2. DECLARATION I, Rajkumar Adhikari declare that the contents of this Seminar paper represent my own unaided work, and that the Seminar paper has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the Purbanchal University. Signed __________________ Date _________________
  3. 3. VIVA -VOCE SHEET We have conducted the VIVA VOCE Examination of the seminar paper. Submitted by: Rajkumar Adhikari Entitled Factors Affecting Employee's Motivation in Hospitality Industry: The Case of Lumbini Tandoori Restaurant And found that the seminar paper to be original work of the student and prepared according to the prescribed format. We recommend the seminar paper to be accepted as partial fulfillment of the requirement for the Master of Business Administration (MBA), faculty of management, Purbanchal University, Nepal VIVA VOCE COMMITTEE Institutional Head Chairperson Concerned Seminar Faculty Internal Expert Appointee of the Dean External Expert
  4. 4. ACKNOWLEDGEMENT I express my gratitude to Purbanchal University for providing me the opportunity to conduct a study on hospitality management .This study has been carried as a study based report for the seminar series, Master of Business Administration (MBA), according to the course offered by Purbanchal University. This study has been made with a view to analyze the Factors Affecting Employee's Motivation in Hospitality Industry. Doing this study, it made me able to understand and know different types of activities related to Factors Affecting Employee's Motivation in Hospitality Industry. Firstly, I owe my deep gratitude to our Academic Director, Mr. Narendra Kumar Shrestha for providing me valuable guidelines, supervision and rightful comments, without which this report wouldn’t have materialized in this form. I am also appreciative to the staffs of the Lumbini Tandoori Restaurant for their valuable help in providing the necessary materials and information required. I would like to express my sincere thanks to our Facilitator Prof. Dr. Shyam Katwal for providing me valuable information, guidelines and rightful comments in order to complete this study. I would like to express my extreme gratitude towards my brother Vijay Adhikari, Sister Kamala Adhikari for providing me constant support. Any error in this report is my own responsibility and sincere suggestion of this paper is highly appreciated. Feb 9, 2015 Rajkumar Adhikari
  5. 5. ABSTRACT Today it is clear that businesses give importance to factors that increase employee’s motivation. As the hospitality industry is mainly focus on hospitality and the hospitality providers are employee of that organization, thus it is the major task for managers & owners to motivate employee for the growth of their business. The purpose of this research is to examine the factor which motivates employees in a hospitality industry. Also it’s another aim is to measure whether employees, according to their demographic characteristics, show differences in evaluating factors that affect motivation. The combined approached (mix of qualitative and quantitative techniques) method is used for the purpose of this project. Primary data of this research is obtained by using questionnaire technique and secondary data from books, articles and from website. In this research, we argue that motivating your employees is as critical for excellent hospitality as is training them. Keywords: Motivation, hospitality industry, restaurant, employees.
  6. 6. INTRODUCTION Motivation Today, to remain standing in competitive world, hospitality businesses need both to increase their employee’s motivation and to be in effort of continuous development of their businesses facilities provided for their customers (Aksu, 2000). Every employee has unique needs and wants that must be addressed by the employer and the employer too has goals to be achieved at the end of the day by the employee. Motivation is very important in any organization inclusive the hospitality Industry. Motivation creates employees’ job satisfaction and good interaction between employees customers that eventually attract a repeat business (Condly & De Pietro, 2001). There are organizations that make serious efforts and devise effective strategies to keep their employees motivated. Managers should make paramount efforts to derive employees to perform at their best. By making the provision of motivational factors managers and supervisors can make employees satisfied which in turn increase the efficiency of employees. The core purpose of this research is to explore the motivational factors for employees. For this purpose, hospitality industry is chosen. Employee turnover in the Hospitality Industry costs restaurants and hotels billions of rupee each year, with worker turnover rates as high as 95% for some properties (Samuels, 2013). In the United States of America it was observed that employees’ turnover cost the industry a loss of 150 billion dollars per year. Research showed that if level of motivation is improved, the turnover rate reduces by 53% (Barrows & Bosselman, 1999). A study of motivation and performance among fast food employees by Candy and De Pietro (2001) found out that turnover is less when employees feel good about their jobs; are supported by their organizations and have value for their work. Those who feel that work conditions are below standard and do not play fair are less motivated. The purpose of the study is to identify factors affecting motivation of employees working at Lumbini Tandoori Restaurant and assess the level of their motivation. The study has been carried out on the employees working in the line position (operation level) who are directly involved in day-to-day food making and selling operations at Lumbini Tandoori Restaurant. Employees involved in staff management (strategic and tactical level) have not been included in the study.
  7. 7. Theories of Motivation 1. Maslow’s Hierarchy of Needs Abraham Maslow’s theory proposed that human beings had different levels of needs in a particular order. He identified five levels of needs in order of hierarchy. The most basic needs are the biological and physiological needs. At the top is the need for self-actualization which Maslow defines as growth motivation and calls it the ‘Being Need’. Maslow identifies the four different types of needs below the level of self-actualization as ‘Deficit Needs’. He explained that if one had any of these four levels of unmet needs, one would feel the deficiency but if the need was met, one would almost be unaware of it. Diagram: Maslow’s Hierarchy of Needs According to Maslow, peoples’ needs are insatiable and there can be unending demands. Once needs in one level are met, people will demonstrate their desire for the next level of needs. Maslow’s theory helps to understand different types of needs of people.
  8. 8. 2. Theory X and Theory Y The Theory Y assumptions (Douglas McGregor, 1960) about people and their work created Space for bringing in an environment where they can feel motivated to perform at their best Employee motivation often depends on the style of the managers. The managers with theory X assumptions are characterized by certain traits, e.g. authoritarian style and tight control. They do not appear to promote development, and create a restraining culture. Employees hardly get any motivation under such leadership. The managers with theory Y assumptions practice a different style which is liberating, empowering and developmental. They believe in achieving accountability among the employees by enabling them and giving them responsibility. Employees feel more motivated while working with such managers. Table: Theory X and Theory Y
  9. 9. Why Motivate Employees? A successful organization can generally trace its success to motivated employees. A look at the synonyms for the word ‘motivated’ such as induce, move, provoke, prompt, and cause, shows that without motivation at some level, nothing really gets started. However, motivating people can be difficult; there are no magic formulas or programs to motivate individuals. Motivation is also personal. While one employee may appreciate time off, the next may enjoy new challenges. The basic rule is to discover what your employees want and create a way to give it to them or encourage them to earn it. Following this principle should motivate your employees and allow them to become engaged in the success of the campus and your department In order to gain an understanding and assess employees’ motivation, this study emphasizes to explore results of a number of questions: 1. What are the reasons employees choose to work in Lumbini Tandoori Restaurant? 2. What are the most important factors that affect the willingness of the Lumbini Tandoori Restaurant's employees to exert more effort in the job? And finally 3. To what extent the Lumbini Tandoori Restaurant's employees are motivated to achieve the company's objective? Justification of the study This study examined the concept of employee motivation as a mean for delivering superior service quality in the hospitality industry as well as other similar industries. This paper provides a framework for managers to use to enhance their understanding of employee motivation and its sources. A successful quest for service quality can be the difference between success and failure for many service organizations. In today’s competitive environment, customers are always looking for better service, more knowledgeable support, faster response time, and lower prices. Service organization that allow their employee productivity standards to deteriorate by not encouraging improvement in the volume and quality of output, will see their customer base dissolve.
  10. 10. LITERATURE SURVEY According to some previous researches, it is seen that factors that affect the employees of hotel industry in a negative way are, insufficient wage and job security, limited training program, new opportunities’ not developing, business managers being deprived of manager qualifications and high job transfer speed (Cheng & Brown, 1998; Wong et al., 1999; Zhang & Wu, 2004). In addition to these factors it is known that employees have problems with their working hours and social conditions (Karatepe & Uludağ, 2007). That’s why in hotel businesses there are different researches made by researchers to determine what are the factors that motivate the employees in a positive way and as a result of these researches too many factors have been found (Mak & Sockel, 2001; Velo & Mitta, 2006). For example, in the middle of 1990s Smith, Kendal and Hulin found a scale named ‘’Job Descriptive Index’’ in their researches and developed in later years. Hackmen and Oldham (1996) developed ‘’Job Characteristics Approach ‘that explain the reasons of factors that have effects on employees job satisfaction. This approach includes dimensions of skill variety, task unity, task importance, autonomy and feedback. These features are important in motivating employees and providing employees job satisfaction. Taking this broad definition to the context of supervision in the hospitality operation, motivation is what the supervisor does to encourage and influence other people to take necessary action. Infract motivation is an internally generated force or drive within the individual which provides an incentive for the employee to act.
  11. 11. METHODOLOGY The study was carried out based on both primary and secondary data. Primary data was collected from three different Lumbini Tandoori Restaurant located at Thapathali, Kupandole, Bagbazaar station in Kathmandu during period of 7th Feb 2015 to 11th Feb 2015. A structured questionnaire, mostly closed styled, was provided to 35 employees of three restaurants to collect primary data. Out of them, only 29 sample respondents (82.86%) out of them participated by filling the questionnaire and sending it back to me. However, 24 out of 29 (69% of 35 sample respondents) sample respondents participated actively in survey activities by answering to all questions dully and rest of them answered partly and was excluded their responses from the study. There are two type of the questionnaire; part one consisted of demographic information of the sample respondents. The second part comprised four questions in comprised four questions in relation to employee’s motivation. Secondary data, on other hand, was used as well to describe different motivation theories and factors. They were collected from different books, journal articles, website, published dissertation papers of graduates etc. A combined approached (mix of qualitative and quantitative techniques) was used to achieve the objective of the study. The qualitative approach was used to explore sample respondent’s interpretations of event and the quantitative approach to quantify their attitudes, beliefs, feelings, behaviors that seemed immeasurable in qualitative techniques. 4-point Likert scale was used in all questions of the questionnaire ranging from 1 to 4-point, where point-1 represents negative responses (such as not important/ not motivated/ not de-motivated) of the sample respondents. On the other hand, point-2, 3 and 4 represents gradual ranking of positive answers (such as least, moderate and highly important/motivated/de-motivated respectively) of the sample respondents. Primary data collected from field survey was tabulated using Microsoft office Excel, and all data was recorded using numerical codes. Various statistical measures such as frequency distribution were used in describing the variables. This section has been divided into five phases. In the first phase, demographic information of the sample respondents and reason to choose work at Lumbini Tandoori Restaurant has been described in second phase. Factors affecting the motivation and de-motivation of the respondents have been discussed in the third phase. In the final phase, the level of motivation of employees has been assessed based on the data collected from the field survey
  12. 12. FINDINGS AND EVALUATIONS Demographic Information of the Sample Respondents The culture of Nepal is a diversified and multi-cultural. The evidence of the multicultural is observed in the job market where different people belonging to unlike cultured get assembled that develops an exceptional multifarious working environment. According to Thomas and Pekerti (2003) there is a moderate impact of national culture on the relationship between job satisfaction and employees' exchange behaviors. The study shows, the male is dominant (75%) over female. The field survey study shows that a large portion (41.67%) of the employee's age lies between 21 to 30 years. An insignificant percent of lower or higher aged employee is seen to work at Lumbini Tandoori Restaurant. The study found that 25% of the employees are part time. In the case of work experience of employment, the study shows that period of employment of the sample respondents is between 0 year to maximum 20 years. The table illustrates that a substantial portion (50%) of employees has been working between 0 to 5 years. There are three work stations in Lumbini Tandoori Restaurant, such as kitchen (for cooking foods), middle (for packing foods),and front where cashier receives order from and deliver to customers. There is a management team in each shop that supervises, directs and guides the task of other sections and maintains liaison with corporate head office. The number of workers deployed in each section depends on the span of task related to each section. This study shows that (12.5%) of the respondents work in the front section as a cashier followed by the middle section (50%) and (37.5%) works in the kitchen.
  13. 13. CONCLUSION The study attempted to identify key factors and indicator that affect the employee's motivation working at Lumbini Tandoori Restaurant and assess their motivation level. Results suggest that there are eleven reasons choose to work at Lumbini Tandoori Restaurant; however, financial benefits such as salary and other fringe benefits do not receive as much of priority as nonfinancial benefits. On the other hand, the study identified six broad categories of motivation factors such as (1) work itself and environment, (2) supervisor relations, (3) company itself and matters, (4) recognition, (5) development and growth and finally (6) pay and benefits. The research reveals that nonfinancial factors have a significantly higher impact on the employee's motivation than the financial factors such as pay and benefits which substantiate the result in relation to reasons choose to work at Lumbini Tandoori Restaurant. This indicates that Lumbini Tandoori Restaurant needs to focus on nonfinancial factors along with financial factors to ensure that its workforce is effectively engaged and consequently motivated. Employees at Lumbini Tandoori Restaurant are more motivated by factors relating to the work itself and the environment. This means that Lumbini Tandoori Restaurant needs to create a good working environment and employees receive recognition and feel valued. As the need for development and growth is also identified as a motivating factor, Lumbini Tandoori Restaurant should provide adequate training and development to ensure employees are motivated. The study also indicates that there are identical sources of motivation and de-motivation which contrast with the result of Herzberg two factor theory where motivation and de-motivation sources as being different and independent. However, the extent of motivation provided by a factor is not the same extent of de-motivation for that factor i.e. the same factors have an effect on motivation and de-motivation of employees in different extent and manner. For example, lower scale of salary results in high level of de-motivation but good wages of salary causes motivation employees not as much as de-motivate them.
  14. 14. REFERENCES International Journal of Contemporary Hospitality Management, 20 (2):228-234. Chan, S.W E., & Wong, S. C.K. (2006). Motivations for ISO14001 in the hotel industry. Tourism Management, 27 (3): 481-492. Cheng, A., & Brown, A. (1998). HRM strategies and labor turnover in the hotel industry: a comparative study of Australia and Singapore. International journal of human resource management, 9 (1):136-154. Chiang, C.F., & Jang, S.C. (2008). An expectancy theory model for hotel employee motivation. International Journal of Hospitality Management, 27: 313-322. 1. Alderfer, Clayton P., (1969). An Empirical Test of a New Theory of Human Needs; Organizational Behaviour and Human Performance,vol.-4, no.-2, retrieved from: http://dx.d oi.org/10.1016/0030-5073(69)90004-X, (Accessed on: 23/10/2012)2.Bokorney, J. (2007). Salaries Still Rising, retrieved from:http://www.archive.evaluationenginering.com/archive/ar ticles/0407/0407salaries.asp, (Accessed on 11/10/2011)3. Brewster, L. Carey, P. Dowling, P. Grobler, P. Holland and S.Warnich (2003). Contemporary Issues in Human ResourceManagement: Gaining a Competitive Advantage. 2 nd edition. CapeTown: Oxford University Press.4. Glanz, B. A., (2002). Handle with CARE: motivating and retainingemployees, New York: McGraw-Hill5. Griffin. R, (2008), Management, Boston: Houghton Mifflin Company6. Habib, M.N., Mukhtar, S., Jamal, W. ( 2010). Factors Influencing theTeachers Intentions to Quite in Private Sector Higher Educational Institutions of Pakistan. Interdisciplinary Journal of ContemporaryResearch Business, vol.-1, p.-12.7. Herzberg, Frederick (1959), The Motivation to Work, New York:John Wiley and Sons
  15. 15. Appendix A EMPLOYEE MOTIVATION SURVEY Instructions: Please Circle the Appropriate Answer. Demographic questions: 1. Gender: A. Male B. Female 2. Work Status: A. Full Time B. Part Time 3. Position: A. Supervisor/Management B. Maintenance C. Customer ServiceD. Clerical 4. Age: A. 18-25 B. 26-40 C. 41-60 D. Over 60 5. Cultural Background: A. Hindu B. Buddhist C. Christian D. Muslim E. Other 6. Years of Hospitality with Current Facility or Organization: A. 0-5 B. 6-10 C. 11-20 D. 21-30 E. Over 30
  16. 16. Appendix: B Factors affecting Motivation of employee in Hospitality Industry. 1. Employees must be provided social facilities (housing, transportation etc.) at the highest standards. A. Very Important B. Important C. Indecision D. Unimportant E. Certainty Unimportant 2. Employees give importance to moral incentives (appreciation, respect, etc) as well as physical A. Very Important B. Important C. Indecision D. Unimportant E. Certainty Unimportant 3. Amount of payment effects the motivation positively A. Very Important B. Important C. Indecision D. Unimportant E. Certainty Unimportant 4. Optimum time of work in businesses affects the motivation A. Very Important B. Important C. Indecision
  17. 17. D. Unimportant E. Certainty Unimportant 5. Team work adds more to the motivation. A. Very Important B. Important C. Indecision D. Unimportant E. Certainty Unimportant 6. Rewards motivate employees at a higher level A. Very Important B. Important C. Indecision D. Unimportant E. Certainty Unimportant 7. Employees like to be given responsibility. A. Very Important B. Important C. Indecision D. Unimportant E. Certainty Unimportant
  18. 18. Appendix: C Demographic information Result Table 1: Demographic Information table of the sample Respondents Culture Frequency % Cumulative percentage Gender Frequency number of respondent % Cumulative % Hindu 10.00 41.67 41.67 Male 18.00 75.00 75.00 Buddhist 12.00 50.00 91.67 Female 6.00 25.00 100.00 Muslim 1.00 4.17 95.83 Total 24.00 100.00 Christian 1.00 4.17 100.00 Age Group Other 24.00 4.00 52.00 15-20 6.00 25.00 25.00 Length of Employment in years 21-30 10.00 41.67 66.67 0-5 12.00 50.00 50.00 31-40 3.00 12.50 79.17 5 to 10 3.00 12.50 62.50 41-50 3.00 12.50 91.67 10 to 20 5.00 20.83 83.33 51 to above 2.00 8.33 100.00 Above 20 4.00 16.67 100.00 Total 24.00 100.00 Total 24.00 100.00 Work Place Working Status Kitchen 9.00 37.50 37.50 Full Time 18.00 75.00 75.00 Middle 12.00 50.00 87.50 Part Time 6.00 25.00 100.00 Cashier 3.00 12.50 100.00 24.00 100.00 Total 24.00 100.00 S.N Statements Very important important Indecision Unimportant Certainty unimportant f % f % f % f % f % 1 Employees must be provided social facilities (housing, transportation etc.) at the highest standards. 20 83.34% 2 8.34% 1 4.17% 1 4.17% 0 0% 2 Employees give importance to moral incentives (appreciation, respect, etc) as well as physical 14 58.34% 6 25% 2 8.34% 1 4.17% 1 4.17% 3 Amount of payment effects the motivation positively 19 79.17% 5 20.84% 0 0% 0 0% 0 0% 4 Optimum time of work in businesses affects the motivation 8 33.34% 10 41.67% 4 16.67% 1 4.17% 1 4.17% 5 Team work adds more to the motivation. 6 25% 8 33.34% 4 16.67% 3 12.5% 3 12.5% 6 Rewards motivate employees at a higher level 15 62.50% 5 20.84% 2 8.34% 2 8.34% 0 0% 7 Employees like to be given responsibility. 8 33.34% 8 33.34% 4 16.67 2 8.34% 2 8.34%

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