IEmployee Relations and Communication Dimensions as Antecedents of Organisational

Commitment: A Case Study of Selected Hotels in Kuching, Sarawak

Deborah Puspamani a/p Kanagendram

A thesis submittedin fulfilment of the requirements for the Degree of

Master of Social Sciences

Faculty of Social SciencesUNIVERSITI MALAYSIA SARAWAK

2001

i

ABSTRACT

This is a cross-sectional study concerning how employee relations and comnl~mication variables influence workers comnitlllent in selected 3-star, 4-star and 5-star hotels in Kuching. The dependent variable was organizational commitment, while eleven independent variables (loyalty, job satisfaction, motivation, employee-supervisor relation, training, recognition, tean~work, communication, methods of commumication, status differential and language) were studied.

A sample size of 112 respondents was randonlly selected from a total population of 448 enlployees in the three hotels. These respondents were interviewed by the researcher and two research assistants, based on pre-tested stmctured interviewed schedule.

The findings showed that both employee relations and communication variables played equally important roles in enhancing employee's job conunitment. With the exception of training, all eight independent variables (loyalty, job satisfaction, motivation, employee-supervisor relations, teamwork, recognition, comn~unication and status differential) were positively correlated with organizational conunitment.

All the twelve hypotheses, linking each of the independent variables were confirmed at p<.01 and p<.05. The correlation results for status differential, however, suggested the reverse. Status differential was positively correlated to organizational commitment.

The results of a step-wise regression showed that personal motivation was the best predictor of organizational commitment, which accoumted for 79 percent of the variance. Employee-supervisor relations explained an additional 2 percent, while job satisfaction and open-conununicatio11uinicatio added 1 percent of the variance in organizational commitment respectively. Other variables did not make significant contribution to the explained variance of organizational conmitment. However, because the independent variables were highly inter-correlated, the results of the regression analysis need to be interpreted with caution due to a high nlulticollinearity among these independent variables.

ABSTRAK

Knjian lcerntan rintc~ng ini rnenitiliberatkan hubunglcait antara dirnensi-dinzensi hubungan pelce~.ja dun Icorntrnilcasi dengan Iconzitmen orgcmisasi di tiga btrah hotel beriktiraf 3, 4 dun 5 bintang di Kziching. Pernbolehubalr bergantung di dalanz kajian ini adalah kornitnient organisasi, sernentara sebelns pernbolehtrbah-penlbolehz~bah bebas (kesetiaan, lcepuasan lcerja, rnotivasi, hubungan pekerjn-penyelia, latihan, pengiltirnfnn, Icerjasama berlcunipulrm, komzmilcasi, keaclnh lcornunilcasi, perbezaan status don bahasa) juga di Ieaji.

Sarrrpel kajian seraniai 112 responden telah dipilih secara rawak daripada jurnlah populasi serarrrai 448 pekerja di tiga buah hotel. Responden-responden irzi telah diternubzral oleh penglcaji seert dzra pernbanttr penyelerfik nzenggunalinn botang soalselidil.

Hasil Icnjian nzen~tnj~rlclian bahawa dinzensi-dimensi dalam hubzlngan pekerja dan kom~nnilcasi rnemainkan peranan prig soma penting dalanr rnernpengaruhi leomitmen pelerja. Kesenzua lapan pernbolehubah bebcrs (Icesetiaan, kepuaasan kerjn, rnotivasi, hubungan pelcerja-penyelia, pengikk'rafan, lterjasanra berlcunzptrlan, Icomunileasi dan perbezaan status) lcecuali latihan rnernpunyai lcorelasi posit$ dengan kornitnzen organi.sasi.

Kesernua duabelrrs hipotesis yang berhuhzrnglmit dengan pernbolehubah-pembolehubah bebas adnlah pada pc.01 dan p<.05. Walau bagairnanapun, Iceputusan korelasi bagi perbezaan statz~s rnenunjulclcan keputusan terbalik. Perbezaan status rnenzpunyai Icorelasi posikifdengan kornitment organisasi.

Keputztsan Icajian regresi nzenunjzrlclcan bahawa motivasi adalah pengaruh terbaik dalanl Iconzitmen organisasi deiengan nzei~vunibanglinn sebanyalc 79 peratus varian, htrbtrngan pelcerjn-penyelia pula menerarrglcnn penanrbahan varian sebar!vak 2 peratus, nlanaleala kepuasan kerja dun kornunilcasi nzenambahlcan sebarg~alc 1 perntus daripnda varian di dalam lconzitnien organisasi. Penibolehubah- penzbolehubah lain tidnk nzenunjzlklinn strmbangan signifilean di dalani nzenerariglcan vnrian. Walau bagainmnapz,m, disebablcan penzbolehubah-pemboleiitlbaIz bebas n1enzpunyai hubunglcait yang r a p t , Iceputusan analsis regresi horuslah interpertasi dengan teliti disebabkan nzz~ltilcolinearan yang tinggi antara penrbolehztbnh-pen~bolehuDal~ bebas.

Dedicated to my late father,

Mr. C. Kanagendram

ACKNOWLEDGEMENTS

My sincere tl~a~dcs go to my supervisor. Professor Madya Dr. Dimbab Ngidang, for his carefill guidance. insight and instn~ction throughout tlus project.

I would like to thank the Deputy Vice-Chancellor (Academic), Professor Abdul Raslud Abdullah, for his encouragement. The completion of my master's degree would not have been possible without his support. A special note of appreciation is due to Professor Michael Leigh for his concern on the progress of my thesis and also for the opportunity to work and the experienced gained. His understanding 'and professional advice have made learning a pleasure and joy to me.

I would also like to extend illy gratitude to the staff of Merdeka Palace Hotel and Suites, Grand Continental Hotel and Telang Usan Hotel for their co-operation in participating in this study. My thanks also go to the Head of the Human Resource Department of the respective hotels in providi~~g much information and &ta relevant to this study.

A special tl~~anks is also extended to Gill Ra-ja for her advice, suggestions and illost importantly, in helping to proof-read nly work.

I am gratefill for the invaluable friendship and help of Dr. Manjit Sidhu, Hazliila Kamarulzaman, Angela Anthonysamy, Azua Razak and Ivy Splendour. I would like to acknowledge ~ n y gratitude to K. h a n d for his motivation, understanding and assistance during my graduate work.

There are no words that can express my thanks to my family for their love and foresight in always encouraging me to go one step filrther. Last but not least, I would like to thank Dr.Ganesh Selvarajall for his inspiration and encouragement in what I do.

TABLE OF CONTENTS

TITLE PAGE

ABSTRACT

A BSTRJK

DEDICATION

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

CHAPTER I STATEMENT OF THE PROBLEM

1.0 Introduction

1.1 Problem statement

1.2 Research objectives

1.3 Significance of the study

CHAPTER II THEORETICAL FRAMEWORK

2.0

2.1

2.2

2.3

2.4

2.5

Section I: Dependent variable

Organisational commitment

2.1.1 Definition of term2.1.2 Measurement of commitment2.1.3 Approaches in examining commitment

Section II: Independent variables

Dimensions influencing organisational commitment

7

8910

11

11

Employee relations 16

Communication 28

Page

i.1 1 1

iv

V

vi

vii

x

xii

vii

CHAPTER I11 RESEARCH METHODOLOGY

3.0 Research Setting

3.1 Population and sa~npling procedure

3.2 Data collectioil

3.2.1 Pre-testing 3.2.2 li~stnin~entation 3.2.3 Face-to-face interview

3.3 Operationalization of concepts

3.3.1 Dependent variable 3.3.2 Indicators of independent variables

3.4 Data analysis

3.5 Methodological issues

CHAPTER IV FINDINGS AND DISCUSSIONS

4.0 Section I: Social Econotnic Characteristics

4.1 Section 11: Analysis of Variance (ANOVA) and t-test analysis of dependent and independent variables

4.1.1 Organisational co~n~nitrne~lt 4.1.2 Dimensions influencing organisational commitment 4.1.3 Etnployee relations 4.1.4 Comm~u~ication

4.2 Section 111: Hypothesis testing

4.2.1 Organisational colntnittnent and independent variables 4.2.2 Organisational conlnlitrne~lt and enlployee relations 4.2.3 Organisational commitment and communication

4.3 Section IV: Regression analysis

4.3.1 Predictors of organisational co~nmitlnent 4.3.2 Deterininants of employee relations 4.3.3 Detertlina~ts of comi~~~~nication

CHAPTER V SUMMARY, CONCLUSIONS AND IMPLICATIONS

5.0 Sulnrnary

5.1 Conclusio~~s

5.2 I~nplications of the study

5.5 Recommendations

BIBLIOGRAPHY

APPENDIX A: QUESTIONNAIRE IN ENGLISH

APPENDIX B: DESCRIPTIVE RESULTS OF QUESTIONNAIRE

APPENDIX C: DESCRIPTIVE RESULTS OF SCORES IN CATEGORIES

APPENDIX D: DISTRIBUTION OF HOTELS IN KUCHING, SARAWAK

APPENDIX E: LETTER OF INTRODUCTION

LIST OF TABLES

Table 1

Table 2

Table 3

Table 4

Table 5

Table 6

Table 7

Table 8

Table 9

Table 10

Table 11

Table 12

Table 13

Table 14

Table 15

Table 16

Table 17

Table 18

Table 19

Table 20

Table 2 1

Social Econonlic characteristics of respondents

Distribution of respondents by organisational conz~nitnlent scores

Results of one-way ANOVA of orgausational between hotels

Distribution of respondents by knowledge, believes and practices in the hotel

Distribution of respondents by loyalty scores

Results of one-way ANOVA of loyalty between hotels

Percentage distribution of respondents by reasons of liking work in the hotel

Percentage distribution of respondents by reasons of job satisfaction

Distribution of respondents by job satisfaction scores

Result of one-way ANOVA of job satisfaction between hotels

Distribution of respondents by moti\~ation

Result of one-way ANOVA of motivation between hotels

Distribution of respondents by e~nployee relations scores

Result of one-way ANOVA of etnployee relations between hotels

Distribution of respondents by etuployee-supervisor relations scores

Result of one-way ANOVA of employee-supervisor relations between hotels

Results of post hoc tests using scheffe

Percentage distribution of respondents by training

Distribution of respondents by training scores

Results of one-way ANOVA of training between hotels

Distribution of respondents by recognition scores

Page

54

56

56

57

Table 22 Result of one-way ANOVA of recognition between hotels

Table 23 Percentage distribution of respondents by recognition

Table 24

Table 25

Table 26

Table 27

Table 28

Table 29

Table 30

Table 3 1

Table 32

Table 33

Table 34

Table 35

Table 36

Table 37

Table 38

Table 39

Table 40

Table 4 1

Table 42

Table 43

Distribution of respondents by teanlwork

Result of one-way ANOVA of teamwork between hotels

Distributioil of comn~unication scores

Results of post hoc tests using scheffe

Results of t-tests for differences in open-communication scores between hotels

Distribntion of respondents by reasons, which hinder open- co~ninunication

Distribution of status differential scores

Results of one-way ANOVA of status differential between hotels

Percentage distribution of respondents by methods of com~nunication in the hotels

Methods of com~~~unication by rank of importance

Percentage distribution of activities orgaused by the hotels

The effectiveness of activities in encouraging interaction according to the rank of importance

Distribution of respondents by language

Correlation between independent variables in organisational conlmitille~lt and the level of organisational commitment

Correlation between independent variables in employee relations and the level of orgausatiorrl commitment

Correlation between independent variables in communication, the level of cominunication and organisational commitment

Stepwise regression: organisational commitment and independent variables

Stepwise regression: independent variables and enlployee relations

Stepwise regression: independent variables and communication

Inter-correlation matrix

LIST OF FlGURES

Figure 1 Levels in the 111alageineilt hierarchy

Figure 2 The exchange process between employee and organisatioils

Page

19

2 5

CHAPTER I

STATEMENT OF THE PROBLEM

1.0 Introduction

Growth in the hospitality sector is stimulated by increased tourism. A rapid growth of hotels in Sarawak in recent years was triggered by a demand for affordable accommodation to cater for both local and foreign tourists. Growth was also stimulated by a rising demand for entertainment and banquets to fulfil the needs of an increasingly affluent society. Hotels, like many other business organisations, are profit-oriented outfits that compete for customers in order to survive in competitive market environments. Growing customer demand for quality products and services compels hotels to improve their l~uman resource capabilities, marketing strategies and the working relationships among einployees within the hotels. Attention also has to be given to the beauty of banquet halls, assortment of dishes served to customers, size of rooms and physical appearance of the hotels. What is even inore crucial is the fact that revenues would not be forthcoming unless patronising customers are satisfied with the quality of services offered by the hotels. Quality products <and services which is linked to productivity cannot be guaranteed unless employees are satisfied, motivated and committed to their hotel jobs. However, commitment is not a single variable phenonlenon; it is linked to job satisfaction, working relationships, career path developinent and reward systems.

According to Clainber (1995), orgaiusations tlnt provide the lughest levels of service quality enjoy the richest rewards. These organisations will also achieve the highest levels of growth in revenue, customer satisfaction and retention, market share, productivity, safety, and e~nployee morale, all while reducing cost. However, in order to provide quality services to customers, hotels must first and foremost inculcate in employees a corporate culture, wluch emphasises a co~ninitment to their hotel jobs.

One of the ways for instihlting cdrporate culture anong employees is through training, induction courses, brainstorming, etc., in order to impart cominon visions, values and goals to employees. Not only employees are required to understand these values, visions and goals. but also more importantly they are expected to pursue and achieve them. Again, in order to instill commitment, there must be favourable reward systems, conducive working environments for teamwork and co-operation between employees, and between einployers and employees. Through co-operative com~nunication that is supportive and inclusive, hotels will be able to iinprove teamwork among their employees, provide career path development as well as training skills to mould e~nployees to become better workers in terms of attitude and bellaviours. Only when employees have positive attitudes toward their employers, organisational policies <and mutual respect for their fellow employees, will they feel a sense of belonging and acceptance in the workplace. Thus will in turn motivate employees to give their best, and evoke a greater sense of loyalty. The beneficiary would then be the hotel as these en~ployees will be highly com~nitted to give their best in order to help the hotels to succeed and prosper.

Thus organisational cominitment is a complex behaviour, which is intertwined with social, cultural, econo~nic and psycl~ological attributes. Over the past 30 years, it has been an increasingly studied field in industrial psychology and organisational behaviour because of its

impact on employees’ performance. It has become an import‘ant precursor for maintaining acompetitive edge in competitive environments.

Organisational commitment, also referred to as employee’s commitment, has been defined inseveral ways. Mowday, Porter and Steers (1982:27) characterised the concepts ofcommitment into three factors: (1) a strong belief in and acceptance of the organisation’sgoals and values: (2) a willingness to exert considerable effort on behalf of the orgauisation,‘and (3) a strong desire to maintain membership in the organisation. It is postulated that thereis a linear or positive relation between the level of organisational commitment and job tenure(Mowday, Steers and Porter, 1979). Similarly, a high level of organisational commitment isassociated with a low level of employee turnover (Angle and Perry, 1981), aud thuscontributes to organisational productivity. Lincoln and Kalleberg (199640) identifyorganisational commitment as a work-related attitude which has an important bearing onemployee participation and performance. The more committed the employee is to anorganisation. the greater will be the effort made by the employee in performing tasks (Steers,1977).

Closely related to organisational commitment is the relationship among employees. Employeerelations are also extended to the working relationship between employees and employers.Cordial employee relations help enhance good working relations. Thus it is important foremployers to ensure a friendly working relationship between managers and employees andamong employees or managers themselves in order to instil employees’ commitment andloyalty to the organisation. As ‘organisations continue to grow in size and complexity, thepositive collective efforts of individuals and groups can make the difference between anorganisation’s success and failure’ (Fnmzi and Savini, 1992:2). Most organisations thatsurvive and prosper over time have maintained a balance between a concern for people asexpressed through good working relations between employees, and production (Reece andBrandt, 1993).

Effective communication is essential for the smooth functioning of an organisation.Communication is the means by which employees: (1) to relate to each other with respect totheir job responsibilities in order to achieve the objective of the organisation. and (2)understand how the official communication structure operates within an organisation. It playsa vital role in every job in an organisation, be it management. supervision or training andregardless of whether it is in the public or private sector. Communication also serves as abridge for linking organisational members across all levels in the organisation. Consequently,communication breakdowns can be very costly and has been found to be responsible foremployees’ high turnover and low productivity (Reece and Brandt, 1993).

As the hospitality industry today is competitive, many hotels are re-emphasisingorganisational commitment to increase the quality of services provided to guests. Hotels, likeother organisations. require not only a skilled workforce, but also committed employees. Paststudies (Steers, Porter and Bidley, 1996; Padgett and Balwin, 1989; Mowday, Porter andSteers, 1982) have examined certain aspects of commitment such as loyalty, job satisfactionand motivation. However, there are other dimensions which are equally, if not moreimportant, in enhancing organisational commitment among employees. This present studyattempts to examine how various dimensions in employee relations and communication affectemployees’ commitment in the hotel industry.

1.1 Problem Statement

There is no doubt that good reward systems, career path developnlent. and enhancing employee relations through training and teamwork benefit both workers and employers in the hospitality industry. For hotels, in particular, good enlployee relations and comin~mication help motivate employees to perform with greater efficiency, while cultivating einployees' loyalty and commitment to their hotel jobs. To the employees, employee relations and communication act as an equaliser that enables everyone in the hotel to recognise their roles and accountability to their employers and their co-workers. Subsequently, this will increase employees' confidence, trust and commitment to the hotel. However, what is important to the hotels is to be able to recognise which factors influence employees' commitment to their hotel jobs. This is the iinportant empirical question posited in this study. It is also iinporhnt to understand different styles of leadership, interests of both employers and employees and organisational priorities, which may supersede individual goals and objectives. This not only affects the working relations between employees and employers but also the manner in which employees carry out their jobs; how they feel accepted and develop a sense of belonging towards the hotel. If einployees have poor working relationship with their enlployers, they may not accept positive management policies, feel discontented and also have a negative attitude towards organisational goals. Keys (1991) warned that an adversary relationship between management and non-management should not exist because all employees are expected to work together in unison to achieve coinmon organisational goals. Sometimes, conflicts of interest arises because the management tends to define organisational goals in terms of the level of output or production, and overlook employees' welfare. Stress and strains due to overwork and understaff can create dissatisfaction and often lead to i~linimal employee cominitnlent to their hotel jobs.

Also, inanageinent may overlook giving opportunity and recognition to employees. Giving recognition. which comes in the forill of incentives, such as increase in sal'ary or service points to employees, can be a morale booster to employees when they give positive contribution to the hotels. The question here is: do the hotels give adequate recognition to their einployees? When hotels fail to give the right kind of recognition to their employees, a feeling of discontent can eventually deinoralise the workforce, and einployees can lose their zeal in pursuing their career in the hospitality industry. In relation to this, the lack of coinmuilication from employers may make einployees feel unappreciated and fixstrated by the perceived lack of their employers' concern. This will result in poor working relationship between employees and their superiors. As a result, this can jeopardise the management efforts to instill enzployees' commitment to their hotel jobs. Hence, when poor working relations between enlployer and employees and also among employees become an issue, achieving teamwork is problematic. Reconciling personal interest and collective efforts is by no ineans an easy task. Hotels may encounter problenls such as resistance to or unwillingness of their employees to work as a team for several reasons, such as placing self-importance and ego above organisational goals, status differential between rank-and-file and inanagement as well as lack of coinnlunication among employees.

As coinmunication is to any organisation what blood is to the human body, it is very important to proinote communication in the hotel. In tlus light, the question posited here is: how does con~muilication operate in hotels? Undoubtedly without adequate communication, it is almost impossible to coorperate, co-ordinate and work between different departments in a hotel. Comn~unication is fundamental to effective management and to building enlployee relations. However, what are the causes for con~m~ulication breakdown'? Among the more

common coiniizunication barriers within organisations are employees' differing perceptions toward organisational goals and mission; faulty interpretation of messages; feelings of distrust 'and anger; poor listening habits and gate-keeping fiulctions of organisations (Kossen. 1991). Communication probleins frequently lie at the heart of conflict situations. According to Bennett (1 997), such problems can 'arise when managers only hear what they want to hear and disregard all critical comments by the employees. In situations like this, employees often feel reluctant to approach their superiors with important inforination for the well being of the organisation. This may lead eventually to no coinmunication between employees and einployers. In some cases too. managers asstune that their subordinates have understood a message when in fact they have not. Also. sometimes information is being sent through multi-level channels, which can lead to distortion of messages as they pass through the system. Coinm~ucation overload call also take place when too many messages are sent to the same individuals at the same time. rhis could lead to employees having to decide between messages that are important from those that are urgent. Based on the above rationale, it is clear that effective coinmunication is important among employees. T h s thesis particularly focuses on what types of communication clim1els facilitate information dissemination and improve commn~~nication between and among employers and employees.

When good communication exist in l~otels, conflict among employees can be resolved. Bennett (1997: 10) stated that 'corfiicts occur in employinent situations because of friction between individuals, between groups of workers such as between and in sections, departments. divisions, grades of employees, fiill-time or part-time workers, casual or pernzanetlt staff. and between various levels of authority within the firm'. Conflict situations often cause disagreement. lnisdirect en~ployee's efforts, waste time, cause stress, and ultimately lead to disruption in organisational fUnctions and activities. Thus. what factors would help reduce conflict and increase teamwork anlong employees? To what extent does teamwork promote organisatio~zal commitnzent among hotel employees?

Concern for the employees' career and personal growth is a critical issue that needs to be resolved by employers if an effective way of building good coininunication and employee relations at the workplace is to be achieved. This can take tlie form of training, group sharing, feedback and suggestions just to name a few. However, how do these strategies fulfil their objectives and purposes if tlie employees fail to understand their roles and what is expected of them from such activities. For example, employees' lack of understanding of the purpose of training is one of the inajor contributors to their lack of commitment in the organisation (Mowday et al, 1982). Although training is crucial to the smooth functioning of an organisation, most organisations do not spend time providing the appropriate and specific training required by their enlployees. Furthermore, while task related training is important, social shlls training is equally. if not more important, to employees, so both need to be included. It is therefore relevant to specify what range of training is useful to einployees and how can they be helped to apply knowledge so gained in their workplace. The operational objectives of this study are based on the research questions inentioned in the above explanation of the problem statement section.

1.2 Research Objectives

The general objective of this study was to exanline the extent to which employee relations and con~munication influence enlployees cotninitnlent to the hotels.

To achieve the stipulated general objective, two specific research objectives were formulated. The first objective of the present study was to determine the correlation between various dimensions in organisational commitnent (loyalty, job satisfaction and motivation), employee relations (employee-supervisors relations, training, teamwork and recognition), and cominunication (methods of communication. status differential and language). while the second objective was to evaluate the influence of the dimensions on orgausational commitment.

1.3 Significance of the Study

The study will contribute to the theoretical understanding of organisational comnlitn~ent. It will show the extent to which organisational commitment is determined by employee relations and commu~~ication. The literature also shows the impending link between organisational commitnlent, employee relations and commullication.

This study is deemed usefill for the hospitality industry as so far no similar research on this topic has been sighted in the literature search. The results of this study are important for a more in-depth understanding of tlle dimensions which influence orgalisational con~mitn~ent. The hotel malagement can use tlus understanding to identify the diinensions which may influence the level of organisational co~nnlitnlent in their respective hotels. In addition. infornlation in this study will be gathered first-l~~and from the respondents through a structured interviewed. Such first-hand infornlation will reflect more accurately the perceived gap between what the einployees' needs of the workforce and what the industry currently provides. Thls information will also provide useful insights to people designing training programnles for the future employees in the hospitality industry. From the findings of tlus study recon~n~endations will be made to address some aspects of the research problems as well as issues that face the developlnent of huma~~ resources in the hospitality industry.

On the whole, tlle study can serve as a benchmnark for fi~ture research in this topic. Furthem~ore, it is also hoped that the findings of this study will be useful for the hotel nlanagement to understand the relationship between organisational commitment, employee relations and communication.

CHAPTER I1

THEORETICAL FRAMEWORK

This chapter discusses a theoretical framework for explaining employees' coinmitinent in the organisation. Section one &scusses the conceptual definition, measurement and approaches for studying organisational commitment (e.g. motivation, job satisfaction and loyalty), while section two focuses on the dimensions of enlployee relations (e.g. leadership, training, recognition, and teamwork) and coinmunication (e.g. methods of communication, status differential and language).

2.0 Section I: Dependent Variable

2.1 Organizational Commitment

Employees' commitnlent to their employers and organisation has been a subject of great interest to investigators of organisation theory as they attempt to understand employee's behaviour and dedication to the work organisation. Theoretically, organisational comnlitrnent influences a variety of behaviours that are essential to the effective hnctioning of an organisation. Organisational coinmitment is an attitude and behavioural variable. Keen interest in organisational conlnlitnlent stems froin its demonstrated linkage with pertinent behaviour-related outcoines such as absenteeism, employee retention and performance (Putti, Aryee and Tan, 1989:278). Research findings also revealed that employees' comnlitn~ent is an iinportant predictor of organisational effectiveness and worker's attitudes and beliefs (Steers, 1977). Thus, managers and organisational analyst use the understanding of the concept of einployees' coinmittnent to organisation in their approach to improve and enhance employee retention and perfornlance.

Many researchers have directed a great deal of effort into identifying and analysing variables that have influenced the level of commitment. In their studies, coininitment has been repeatedly identified as an essential variable in understanding einployees' behaviour in organisation. For example, it is widely accepted that the level of organisational coinmitment and job performance are positively correlated (Mowday, Porter and Dubin, 1974). while tardiness, absenteeism (Steers, 1977), and hunover (Porter. Steers. Mowday and Boulian. 1974) are negatively related to organisational commitment. In addition, 'organisational commitment has also been linked to several personal characteristics. roles and aspects of the work environnlent ranging from job characteristics to dimensions of organisational structure' (Matlueu and Zajac, 1990).

Mowday, Porter and Steers (1982) have suggested that gaining a greater understanding of the processes related to organisational cominitment have implications for enlployees, organisations and society as a whole. Einployees' level of commitment to an organisation inay lead them to both extrinsic (e.g. wages and benefits) and psychological (e.g. job satisfaction and relationship with co-workers) rewards. Organisations value coinmitinent ainong their einployees as it is assumed to reduce withdrawal behaviours such as lateness and lug11 tunlover. In addition, cominitted einployees may be more likely to be engaged in "extra-

role" behaviours, such as being creative and innovative which is useful to keep organisation competitive (Katz and Kahn, 1978). On a larger perspective, Mathleu and Zajac (1990: 171) concluded that 'a society as a whole tends to benefit from employees' cominitment to the organisation in terms of lower rates of job movement and perhaps higher national productivity or work quality or both'.

However, Morris and Sherman (1981:512), commented that 'although a great deal has been learned about the potential influences of organisational commitment from these studies. no single, widely accepted set of commitment antecedents has emerged to endure repeated testing'. In other words, there are many variables linked as antecedents and outcomes of orgaiusational coininitment but few studies have combined these variables.

In view of the potential importance of organisational commit~nent as mentioned above. this study aimed at identifying dimensions such as loyalty, job satisfaction and motivatio~l that influence employee's commitment to their work organisation. In this research too, several dimensions in employee relations (such as employee-supervisor relations, training, teamwork and recognition) and communications (such as methods of communication, status differential and language) were examined in relation to organisational commitment.

2.1.1 Definition of Term

Organisational co~n~ilittnent has been defined in several ways. However, the various definitions share certain trends in which orgalisational commitment is considered to be a bond or link between employees to the organisation. In this study, the definitions of organisational commitment were based on two main sources.

Firstly. the most com~nonly studied type of orgausational commitment has been attitu&nal coinmitment. A coinlnon definition as referred in chapter 1 is by Mowday et a1 (1982:27) who characterised the concepts of commitment into three factors: '(1) a strong belief in and acceptance of the orgalisation's goals and value, (2) a willingness to exert considerable effort on behalf of the organisation, and (3) a strong desire to maintain membership in the organisation'.

The above definition simply implies that commitment represents sometlung beyond mere passive loyalty to an organisation. 'It involves an active relationship with the organisation such that individuals are willing to give sonlething of themselves in order to contribute to the organisation's well being. Hence, to an observer, commitment could be iilferred not only from the expression of individual's beliefs and opinion but also from lus or her action' (Mowday, Steers and Porter, 1979:226)

According to Steers (1991), when commitinent is viewed in the contexts of the above, it is seen as sometlung beyond mere passive loyalty to the organisation. Instead. commitment involves an active relationship in the organisation in which individuals are willing to give something of themselves in order to help the company succeed and prosper. Other researchers have concluded that attitudinal commitment occurs when 'the identity of the person is linked to the organisation' (Sheldon, 1971:143) or when 'the goal of the organisation and those of the individual become increasingly integrated or congnlent'(Hal1 et al, 1970: 176). 'Attitudinal commitment t11~1s represents a state in wluch an individual identifies with a particular

organisation and its goals and wishes to nzaintain membership in order to facilitate these goals' (Mowday, Steers and Porter, 1979:225).

Secondly, definitions of organisational commitment have also focused on commitnlent- related behaviours. Organisational commitment is referred to in the form of calculated commitment. This type of comillitnlent is built upon the work of Becker (1960:33) who defined 'cominitinent as the tendency to engage in consistent lines of activity because of the perceived cost of doing otherwise. In this case of commitinent to the organisation. the perceived costs related to discontinuing the activity (for example, leaving tile orga~lisation). Perceived cost might involve loosing attractive benefits and seniority, the disruption of personnel relations created by moving to another location and the effort of seeking a new job'. Hrebiniak and Allutto, (1972:556) defined calculated comnlitment as 'a stnict~ral phenomenon wlucli occurs as a result of individual-org~anisational transactions and alterations in side-bets or investments over time'. In other words, employees reinain in the organisation because they have side-bets and have sunk costs which are important and they cannot afford to lose them, if they were to leave the organisation.

2.1.2 Measurement of Commitment

As commitment has been defined in various ways, so has the measurement of it. Porter, Steer and Mowday in 1974 developed the Orgailisational Comnlitment Questionnaire (OCQ) to measure commitment. A 15-item scale was constnicted as well as a 7-point Likert scale which together were used to measure the level of commitment. Based on previous studies by researchers (Padgett and Balwin, 1989; Hall and Sclmeider, 1972; Steers et al, 1996), the OCQ was found as the most conlnlon method to measure comnuttnent in terms of affective and emotional attaclullent employees have towards the organisation. In other words, strongly conln~itted enlployees identify with, are involved in, and enjoy membership in the organisation. According to Mowday et a1 (1979:227), 'it was intended that the scale items, when taken together. would provide a fairly consistent indicator of employee con~mitment level for most working populations'. Morris and Sherman (1981:514) added that 'to date, all eillpirical shidies ha t have shown orgausational conzmitment to be related to on going behavioural outcomes have used Porter's measure of commitment, which is based on the so- called psychological approach described in Porter and Smith (1970). Additionally, in contrast to other measures. Porter's index has a substantial body of reliability and validty documentation'.

However, some researchers argued that affects are not enough to measure comnlitment. As conlillitlnent is defined as a tendency to 'engage in consistent lines of activity' (Becker. 1960:33), the illeasureineizt of comillitillent should take into account perceived cost associated with leaving the organisation. Cost-induced conltnitll~ent has typically been assessed using a measure developed by Ritzer and Trice (1969), and modified by Hrebiniak and Alutto (1972), that requires respondents to indicate the likelihood that they would leave the organisation if they were given better alternatives, such as pay, status 'and promotion.

Meyer and Allen in their Tluee-Component Model of Comnlitment developed a more con~prehensive nleasurenlent of organisational commitment later in the late 1980s. In this model, Meyer and Allen (1987) categorised the measurement of organisational comlnitment into three components: affective, continuance and normative commitment. respectively.

Meyer and Allen's (1984) Affective Commitment Scale (ACS) and Continuance Commitment Scale (CCS) was developed to operationalise the two popular views made earlier by Porter et a1 and Becker. ACS supported the work of Porter et a1 who described cornn~it~llent as an attihtdinal state.

Thus, coinmitrnent can be defined as the strength of individual's involven~ent in and identification with a particular orgallisation. Meyer and Allen's CCS on the other hand. is associated with Becker (1960). who describes conlmit~nent as a tendency to stay in an organisation because of the costs of leaving (e.g. lost benefits and pensions, perceived lack of other opportunities). Normative co~nlnitlnent by Meyer and Allen (1987) refers to en-tployees' feeling of obligation to remain with the organisation.

Thus, llaving said the above, it can be concluded that Meyer and Allen's ACS is sinlilar to the ineasurement of commitInent by Porter and his colleagues, while CCS is similar to Becker's measurement of organisational commitment. In this study, the measurement of organisational comlnitment is based on the work of Porter and lus colleagues.

2.1.3 Approaches of Examining Commitment

The concept of coininitlnent can be exalnined fro111 tluree theoretical perspectives: escl~ange approach, psychological approach and blended approach.

(1) Exchange approach

According to Morris and Shennan (1981:513), 'Exchange approach view con~nlitlnent as an outcome on inducement/colltributio~l between the organisation and member, with an explicit emphasis on the instrumentality's of meinbership as the primary determinant of member's accn~al of advantage or disadvantages in the ongoing process of exchange'. I11 other words, com~nionent occurs when all benefits and advantages given to employees are accruing as a result of being part of the organisation. Under this approacl~, the greater the favorability of tlle exchange from the member's perspective, the greater will be his or her comlnitment to the organisation.

Becker already knew such an approach as early in the 1960s. He view the exchange approach as certain extrinsic benefits that will encourage workers to stay in an organisation. This are called side-bets. Employee's attachment to the organisation is i~fluenced strongly by side bets which would be lost if mernberslup in the organisation is terminated. Thus, the degree of comnlitment becomes largely, though not entirely, a function of the extent to which worker's psycl~ological, safety and security needs are met. Fulfilment of other needs, though not denied, are regarded as a secondary importance (Becker, 1960).

(2) Psycl~ological Approach

In contrast to the exchange approach, psychological approach treats commitment as a more active and positive orientation toward the organisation (Porter and Siluth, 1971). Sheldon (1971: 143) defines coininitnlent as 'an attitude or an orientation towards the organisation which links or attaches the identity of the person to the organisation'. Buchanan (1974) views commitment as a loyal attachment to the organisation. Similarly, Porter et a1 (1974) view commitment as the identification with its goals and values, and a willingi~ess to focus strong desire to maintain membership in the organisation.

'Together. these psychological approaches to commitment depict a decidedly positive, lugh-intensity orientation towards the organisation. In addition, they include, but go beyond, the hesitancy to leave conlponent that has been the fundamental diinension represented in exchange-based measures of organisatioilal com~nitment' (Morris and Sl~erin~m, 1981:514).

(3) Blended approach

Morris and Shennan (1981) argue that neither the exchange nor the psychological approach is sufficient to explain the level of employee commitment in their organisation.

As Steers (1977) points out, individuals have certain needs, desires, skills and expectation. An organisation which provides its workers with a work environmeilt conducive to realising their expectations, meeting their demands, and properly utilising their skills will, in all likelihood. attract a workforce largely committed to it. An orgausation which fails to fulfil its employees' psychological, financial, or other needs will find itself with workers who are less likely to stay, frequently abstain themselves from work. or show manifestation to their lack of commitment'. Hence, there is the need to blend the two different approaches i.e. exchange and psychological approach in order to explain organisational cominitinent.

2.2 Section 11: Independent Variables

2.3 Dimensions Influencing Organisational Commitment

As discussed before this, the factors influencing organisational commitment are important. Enlployees ~vho are satisfied with their jobs and workplace and have their need met, w o ~ ~ l d be motivated to perform better in carrying out their roles. In addition, when employees' needs are fulfilled, they would be satisfied and happy to work in the organisation. These directly encourage thein to reinail1 loyal and cominitted to the organisation. Therefore, it is generally hypothesised that:

General hypothesis 1. Organisational coinmitment is related to loyalty, job satisfaction and motivation.

(a) Loyalty

Loyalty is fundamental to long-term success in organisational commitment. En~ployees' loyalty is defined as the willingness to relnain with the organisation and become involved in organisational activities. Loyalty exerts powerful effects on several aspects in work behaviour.

First, the lugher employees' commitlnent to remain in the orgalusation, the lower the rates of absenteeisin and tunlover (Baron, 1986). Absenteeism and turnover are lugldy correlated. When absenteeisln rates are high. turnover rates are likely to be high too (Cherrington, 1987). This is because, as working condition become undesirable, etnployees may first start to nuss a few days and then leave perriznnently. Employees' withdrawal, which comes in the form of tinlover effect national productivity, the organisation and the employees involved. As stated by Steers and Porter (1991:228), 'in view of the current ecoizon~ic probleills facing industrialise countries and the increased competition in the marketplace, such loses can have a severe impact on the national economy'. In organisations, lack of loyalty causes employees to leave the workplace. This eventually increases organisational costs as well as organisation disruption, and demoralises those who remain. Cherrington (1987:588) stated that if enlployees leave their workplace, the organisation is faced with costs which includes 'direct enlployment costs of recruiting. interviewing, testing, checking on references and previous work experience, inoving expenses, and contracting a new einployee file; the administrative costs of processing a new employee through payroll, benefits and orientation the severance cost, such as under-utilised facilities until the new employee is lured, plus the opportunity costs of lost production while the new employee develops new skills.' Moreover, for employees who actually leave the organisation, they face a loss of seniority and non-investcd benefits. possible loss of friendship, and possible disnlption for their families if relocation is necessary for ne\fl jobs (Steers and Porter, 1991)

Second, the lugher the level of loyalty employees lmve towards the organisations. the less likely they are to engage in an active search for another position (Baron. 1986). Employees' remain in their jobs even when better alternative jobs become available. They are reluctant to leave their jobs because they feel satisfied and happy with what the organisation has to give them. Therefore, loyalty levels are generally high in organisations with good working conditions, desirable jobs, wage equities and opportunities for advancement. To increase loyalty levels. companies must improve the quality of work environment (Benton and Halloran, 199 1)

Thirdly, loyalty is also coininonly related to both effort and perforinance. The higher employees' loyalty toward the orgausation, the greater the effort they are willing to invest on its behalf and so, in ~nany cases, the better their performance. As stated by Baron (1986: 164), 'it seems only reasonable to predict that persons who feel deeply conllnitted to their organisation will often behave differently in it than persons who do not show such loyalty, and can hardly wait to leave'.

Employee loyalty is a two-way street between management and rank and file staff. In hotels, it is i~nportant for managelllent to have mutual respect and trust to their staff. According to Benton and Hallorail (1991:12), 'senior inm~agement must realise that the loyalty they earn for the organisation reflects the loyalty the organisation gives to its menlbers. Thus, employee loyalty means being aware, having the foresight to appreciate and involve employees. rewarding and being responsive to einployee needs'.

Therefore, it is llypothesised that:

Research hypothesis 1.1. The lugher the level of enlployees' loyalty, the higher would be the employee's coinnlitnlent to their hotel jobs.

(b) Job Satisfaction

Job satisfaction refers to positive or negative attitudes employees have while carrying out their jobs. According to DuBrin (1991), satisfaction is a need often resulting in a state of contentnlent. W i l e soine einployees may report positive feelings about their job, others offer endless complains and dissatisfaction.

Baron (1986) pointed out that job satisfaction is related to three factors: (1) work settings, (2) specific aspects of jobs, and (3) the enlployees who perforin thein.

Firstly. in work settings, one of the most important factors is the reward system, which includes pay and promotion. When einployees view the reward system in their organisation as fair and reasonable, job satisfaction ainoilg them is enhanced. However, if they feel that the reward systein practised in the organisation is unfair and unreasonable. job satisfaction is reduced (Baron. 1986). Similarly, job satisfaction is increased when employees are permitted to participate in decision-making tllat involve them, and they have responsibility and authority in the hotel rather then just concentrating on their jobs alone (Baron, 1986). In addition, good enlployee-su~pervisor relation also helps job satisfaction in the work setting. According to Trempe. Rigny and Haccoun (1985), when employees approve of the work style adopted by their supervisors, they begin to perceive them as fair, and believe that their supervisors have the ability to hell: them with their jobs and the organisation. When this happen, the level of satisfaction tends to be Iligh. 011 the other hand, employees who dislike their supervisors' approach to m~lageinent might view them as incompetent. or believe their supervisors have little iiffluence with the organisation. When tlus happen, job satisfaction anlong these einployees tend to be low.

The second factor wluch influences job satisfaction is the type of jobs. Baron (1986) stated that no st employees tend to prefer jobs which are challenging, interesting and varied, but not too stressful or exhausting. In addition, general work conditions are also important. A work environment that is conlfortable and that facilitates the attainment of work goals will usually produce higher level of job satisfaction cornpared to one that is unorganised, cluotic and unpredictable (Baron, 19S6). Job satisfaction is also enhanced when einployees know just what are expected of them at work. Ambiguity concerning their role, responsibilities and goals often reduces job satisfaction (Baron. 1986).

A third factor ~vhich influences job satisfaction is the einployees' own perso~lalities. Employees' personal characteristics can affect their feelings about their work. Baron (1986: 155) stated that enlployees high in self esteem and who believe that their outcomes are under heir own control are often inore satisfied with their jobs than einployees who are low in self-esteem or who feel that tiley have little impact on their outcome. Employees' relationship with one another also plays a key role in job satisfaction. Research findings indicate that einployees express higher job satisfaction when they enjoy positive friendly

relationships with co-workers and supervisors than when tlrey do not. Job satisfaction is eilhanced when enlployees feel that their colleagues share their inajor beliefs and values. However. if they perceived that they must work with people holding different views froni their own, satisfaction may decrease (Baron, 1986).

From the above, the factors which influence job satisfaction can be linked to the benefits are derived from satisfaction itself. Job satisfaction and dissatisfaction have inany important consequences to tlre individual and tlie organisation. They are related to:

(1) Productivity

Job satisfaction is frequently associated with productivity. As supported by DuBrin (1992:86), 'lug11 job satisfaction is particularly inrportant for the productivity of einplojrees wlrose work involves extensive contact with people'. Motowidly (1984) in lus studies, showed tliat nlanagers with high job satisfaction are Inore likely to listen to others. They also show awareness and concern for the feel~ngs of their staff, are tactful, have good emotional control and accept criticisnr. These positive behaviours are more likely to increase productivity of tlie workers. Thus, in the long run, when job satisfaction is high. it will eventually increase productivity.

(2) Cooperative ard positive behaviour

Job satisfaction leads to good results in job perforn~ance (DuBrin. 1992). Bateinan and Organ (1983588) found that 'employees with high job satisfaction are likely to help co- workers with job-related problems, accept orders witllout a f~lss, tolerate inrposition witho~it complaint. lielp to keep the work area clean and ~urcluttered, nlake timely and constructive statements about tlre departinent or the manager to outside, promote a work clinlate tliat is tolerable and inininuses the distractions caused by conflict between workers, and protect coinpany resources, such as part, supplies and money'. Positive characteristics among satisfied einployees will strengthen their relationship with their supervisors. Supervisors, in hn. will appreciate etnployees who contribute to the organisation.

(3) Absenteeism and turnover

Einployees wlio dislike their jobs are absent more frequently and are more likely to quit. One of these negative consequences is caused by low job satisfaction. Dow and Taylor. (1985) found that absence frequently and duration (length of absence) is most closely associated ~vitli dissatisfaction with the work itself or dissatisfaction with co-workers. Hence, if tlus discontent is modified, job satisfaction will increase and turnover will decrease (Hubin, 1968).

(4) Job stress and Burnout

Job satisfaction is a powerful source to eliininate stress and bunio~~t anlong employees at work. According to DuBrin (1992:87), 'an enlployee wlio feels trapped in a dissatisfying job inay withdraw by such means as high absenteeism or tardiness, or the employee may