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Employees' motivation in the luxury hotel


industry: The perceived effectiveness of
human-resource practices

Article in Managing Leisure October 2008


DOI: 10.1080/13606710802200969

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Leonidas Maroudas Olivia Kyriakidou


University of the Aegean Athens University of Economics and Business
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Employees' motivation in the luxury hotel industry: the perceived


effectiveness of human-resource practices
Leonidas Maroudas a; Olivia Kyriakidou a; Artemis Vacharis a
a
University of the Aegean, Chios, Greece

To cite this Article Maroudas, Leonidas, Kyriakidou, Olivia and Vacharis, Artemis(2008) 'Employees' motivation in the
luxury hotel industry: the perceived effectiveness of human-resource practices', Managing Leisure, 13: 3, 258 271
To link to this Article: DOI: 10.1080/13606710802200969
URL: http://dx.doi.org/10.1080/13606710802200969

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Managing Leisure 13, 258 271 (July October 2008)

Employees motivation in the luxury hotel


industry: the perceived effectiveness of
human-resource practices
Leonidas Maroudas, Olivia Kyriakidou and Artemis Vacharis
University of the Aegean, Chios, Greece

This paper reports on empirical work conducted about the use and effectiveness of human-resource
practices in six luxury hotels of multinational chains in Greece. The paper also explores the
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perceived significance of a number of job-related motivators in the luxury hotel sector and investi-
gates the relationship between individual variables and the incentives offered to hotel employees.
Strategies are suggested for developing suitable motivational programs for employees of different
individual characteristics and backgrounds.

INTRODUCTION In this study, the types of employee incen-


tives offered by the management of six
The increased competition in the inter-
luxury hotels of multinational chains in
national hotel industry has rendered the
Athens were investigated. Specifically, the
improvement of the quality of the provided
objectives of the study were: (a) to explore
services as one of the most important
the perceived significance of a number of
factors for maintaining hotels competitive
job-related motivators in the luxury hotel
advantage. The services provided in the hos-
sector; (b) to investigate the relationship, if
pitality industry are intangible, inseparable
any, between individual variables and the
from the service producer, non-standardized
incentives offered and finally, (c) to
and perishable. Due to these service attri-
suggest, based on the findings, strategies
butes, the evaluation of service quality is
for developing suitable motivational pro-
primarily subjective and lies largely with
grams for employees.
the customers.
Given that the tangible element (e.g., facili-
ties) of the service offer in the luxury hotel
HUMAN RESOURCE MANAGEMENT AND
industry is highly standardized, reflecting
ORGANIZATIONAL PERFORMANCE
the strong branding of international hotel
chains, the services offered by employees is Research in Human Resource Management
the part of product that it is usually difficult (HRM) has its origins in the manufacturing
to be standardized. Subsequently, human- sector, focusing on investigations into the
resource (HR) policies, practices and pro- take-up and impact of particular configura-
vision of appropriate employee incentives tions of best practice HR practices that
are important for the creation of an environ- seek high commitment and flexibility
ment that promotes customer-oriented (Huselid et al., 1997) and contribute to an
behavior. organizations performance and bottom-line
Managing Leisure ISSN 1360-6719 print/ISSN 1466-450X online # 2008 Taylor & Francis
http://www.tandf.co.uk/journals
DOI: 10.1080/13606710802200969
Employees motivation in the luxury hotel industry 259

results. More recently, attention has been high morale and high performance (Enz and
drawn to the diffusion of new approaches Siguaw, 2000). If hotel managers can satisfy
to HRM within the hospitality industry their employees, by understanding their
which has historically been dominated by underlying motivations, it will help them to
images of poor working conditions and improve customer satisfaction in the long
underdeveloped HR practices (Lucas, 2002; run and retain them (Morrison, 1996; Tsaur
Worsfold, 1999). and Lin 2004).
Prescriptive accounts of best-practice Performance management includes activi-
HRM in these service organizations are rep- ties which ensure that goals are consistently
resented by Korczynski in terms of the new being met in an effective and efficient
service management school (Korczynski, manner. A lack of necessary skills, knowl-
2002). Here, a critical source of competitive edge, management, support and personal
advantage is perceived to lie on the pursuit priorities and the discomfort most employ-
of high-quality service, which in turn is ees experience when giving and receiving
reliant on a sophisticated approach to feedback are the forces inhibiting the posi-
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HRM, dependent on employers adopting tive outcomes of the performance manage-


high-cost, high-skill employment strategies ment process (Fletcher, 2001). Failure to set
as well as the effective utilization of HRs. goals and provide ongoing feedback and
These features of HR strategy are consistent evaluations generally results in employees
with dominant concepts and metaphors of becoming demotivated. Effective perform-
HRM that focus on notions of high-commit- ance management systems stand to create
ment and high-performance work systems a vision of success and a climate in which
(Storey, 2001). performers can give their best and strive
Within the new service management for continuous improvement (Haynes and
school emphasis is typically placed on Fryer, 2000). An effective performance man-
soft HRM practices, such as motivation, agement system motivates employees by
empowerment and teamwork. In the hospi- recognizing achievement and fostering
tality industry, which essentially comprises employee development.
both a production and a service aspect, the In the last two decades, a number of
creation and provision of services from the debates have taken place in the field of
hotel to the customer are primarily achieved HRM related to its contribution to the organ-
through the employee, i.e., the hotels repre- izational performance (Chan et al., 2004;
sentative. In this sense, the employees essen- Delery, 1998; Paauwe, 2004; Paauwe and
tially represent the industry (Schneider and Boselie, 2005). In the existing literature,
Bowen, 1993). The success of this industry, there are three different theoretical frame-
therefore, depends on the caliber of its works: the universalistic, contingency and
employees and how effectively they are configurational perspectives (Delery and
managed in order to help organizations Doty, 1996). These frameworks provided a
achieve their objectives. It is essential for rich conceptual background upon which
the management of hotels to develop effi- much theoretical and empirical work
cient HRM policies and practices that flourished.
enable them to motivate competent employ- The universalistic perspective asserts that
ees who can contribute to the achievement there is a simple direct relationship between
of their objectives. This requires an under- HR practices and organizational perform-
standing of what motivates employees at ance (Delery and Doty, 1996). As a conse-
different levels of management and at differ- quence, universal HR practices are
ent stages in their career in order to maintain developed, which directly influence the
260 Maroudas et al.

performance independent of other internal luxury hotel chains are not considerably
or external organizational factors. That is, differentiated by their national implemen-
practices that seek high commitment and tation context. The six luxury hotels, used in
flexibility are always beneficial for organiz- this study, belong to multinational companies
ational success, regardless of organizational which, through their HR policies, try to find
and environmental influences (Huselid the best practices in order for the employees
et al., 1997). to achieve their best performance.
The contingency perspective posits an
interactive relationship among organiz-
TECHNIQUES AND AREAS OF
ational parts (Delery and Doty, 1996). In
BEST-PRACTICE HRM
this sense, there cannot be one common
ideal type of HRM system against which to The literature recognizes that HR strategies
evaluate practice. There are instead a range may affect organizational performance
of choices which are appropriate in different either directly or indirectly through HRM
circumstances. An example would be the results. However, the question that arises is
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evaluation of HRM performance in the which HR practices are the best and most
context of small- and medium-sized firms important to be included in a model that
rather than in large organizations. links HRM with organizational performance.
Finally, the configurational perspective Unfortunately, there has been no authorita-
holds that increased effectiveness is attribu- tive definition of best practice that has
ted to the consistency among patterns of rel- been agreed upon by academics or prac-
evant contextual and organizational factors. titioners. This leads to a lack of conceptual
The basic assumption of the configurational clarity of the HRM best-practice definition.
perspective is that in order to be effective, Several definitions have emerged that
an organizations HR policies must be con- encompass many of the underlying factors
sistent with other aspects of the organization of HRM best practice, allowing us to gain a
and the competitive environment (Doty and better understanding of the topic. Johnson
Glick, 1994). (2000) notes, best practice or high perform-
Due to the reason that the whole debate, ance work practice are described as HR
concerning the three perspectives, is still in methods and systems that have universal,
its early development, there is no consensus additive and positive effects on organiz-
among researchers regarding which is the ational performance (p. 69). This definition
predominant one. This is because any such is related to the fact that each of the best
conclusion would be premature because of practices employed by the organization will
conflicting research results, but more impor- add to the previous, compounding in this
tantly, because the debate is still in its way the resulting performance of the
infancy (Wood, 1999). organization.
Although it is well accepted that good The universalistic model of HRM
HRM policies are positively related with suggests that a specified set of HR best
organizational performance, there is a great practices will always produce superior
need for additional research and quantitat- results whatever the accompanying cir-
ive evidence to support the link between cumstances might be. Huselid (1995)
HRM policies and performance (Gerhart, emphasizes that internal fit helps to sig-
2005). The universalistic perspective pro- nificantly improve an organizations per-
vides the appropriate theoretical framework formance. Terpstra and Rozell (1993) and
for the conduct of our survey, since the HRM Huselid et al. (1997) highlight a number of
practices implemented by international lists of best practices that seek high
Employees motivation in the luxury hotel industry 261

commitment and flexibility, or the high- organization, ultimately resulting in increased


performance work systems which are organizational performance. They continue
accompanied by high business perform- by stating that HRM best practice achieves
ance, thus supporting this type of fit. these results through the development of
There are a lot of studies that explore employee commitment. When employers are
what constitutes a best human resource committed to the provision of training and
practice. Most of these studies (Bamber- development, for example, their act is recipro-
ger and Meshoulam, 2000; Boxal and cated by the employees with increased
Purcell, 2003; Gerhart, 2005) focus on commitment toward the organization, per-
three mechanics by which universal HR formance increases as employees are more
practices impact business performance. skilled and committed to the profession,
(1) Human capital base or the collection resulting in a winwin situation for both
of HRs (skills, knowledge, experience, parties. In simple terms, each best-practice
etc.) that the organization has to work technique aims at developing the employ-
with. The organizations selection, training ees and increasing their commitment,
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and internal development systems influ- with the resulting intention to improve
ence the quality of this base. (2) Motiv- the organizational performance, and ulti-
ation, which is affected by the HR policy, mately create a sustainable competitive
including recognition and rewards. (3) advantage.
Opportunity to contribute, which is influ- Following, we briefly present the 15 best-
enced by the organizations involvement practice techniques that have been outlined
and empowerment strategy. The best-prac- by prominent authors (Delery and Doty,
tices approach, generally, refers to the 1996; Huselid, 1995; Pfeffer, 1994) on the
resource-based theory of competitive subject of HRM best practice: employee or
advantage, which focuses on the role that employment security, selective hiring, effec-
internal resources (employees) play in tive use of teams, effective compensation
developing and maintaining an organiz- strategies, performance appraisal, training
ations competitive capabilities. Specifi- and development opportunities, status
cally, Pfeffer (1994) highlights the case differences with clear job descriptions,
that organizations wishing to succeed in flatter organizational structures that
todays global business environment must enhance information sharing and communi-
take appropriate HR investment to cation, grievance procedures, promotional
acquire and build employees who possess criteria, employee ownership, empowerment
better skills and capabilities than their of employee in the form of decision-making
competitors. This investment will be their abilities, taking into consideration employee
competitive advantage. Therefore, only suggestions, job rotation and possibilities of
HR practices can lead to competitive progression.
advantage through the creation and the However, it is widely accepted (Enz and
development of a unique and valuable Siguaw, 2000; Haynes and Fryer, 2000;
human source. Luthans and Peterson, 2003; Pfeffer, 1994)
Before we proceed with our analysis, that among the 15 above-mentioned areas
it is important to note the purpose and the five are the techniques that need to be
benefits of the best practices that could be further developed in order to enhance the
implemented within an organization. Delaney contribution of HRM on organizational
and Huselid (1996) outline that HRM best performance: training and development,
practices are designed to enhance the teamwork, performance appraisals, effective
overall performance of employees within the compensation strategies and communication.
262 Maroudas et al.

. Training and development. The aim is to are used within organizations today,
provide staff with the necessary skills such as operational performance and
and knowledge to fulfill the organiz- productivity benchmarking, perform-
ations corporate and business plans ance appraisals with management,
(Johnson, 2000). Training should not average sales figures, organizational per-
simply occur with specific reference to formance and others. Performance
an operational task. The development appraisals allow for the measurement
of employees in multiple ways is a of the individual performance of
method for instilling commitment, as employee and/or the team. It can be
reciprocation of this commitment can considered an HRM best practice, as it
been seen through the employees provides an outline for employees
improved performance. Enz and Siguaw within the organization to improve
(2000) offer some practical insight into their performance regarding not only
the operation of training and develop- organizational objectives and oper-
ment within the workplace. In one ational processes but personal goals as
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example, the organization established well.


training modules, which comprised not . Effective compensation. Effective com-
only tasks and exercises that related to pensation strategies have been high-
organization-specific development, but lighted as a practice that creates high
also encompassed areas that aided in commitment. This is created through
the development of the individual compensating the employee in line
employees. Overall, these were used to with their superior performance,
promote organizational understanding, using either financial or non-financial
improve staff communication and self- means. This area is inextricably linked
understanding and enhance self to the area of performance appraisal
esteem. The philosophy was that only since, if the performance level is not
the best could be delivered by the known, the rewards are unjustified.
employee if they feel good about Performance measurement can be at
themselves. an organization, team or individual
. Teamwork. The conceptualization of a level, and is a sound way to gauge the
physical teamwork within an organiz- performance of both employees and
ational environment has proved more organization as a whole (Delery and
difficult than first thought by early man- Doty, 1996).
agement writers. Effective teams within . Communication. As organizations
an organization should be totally self- become increasingly complex, sound
aware and self-managed, not only being two-way communication is essential
accountable for organizational tasks, to ensuring the organization runs
but also being self-regulated to ensure smoothly. Communication, if used as
that the team performs as one at all a best practice, provides all employees
times. with a voice within the organization.
. Performance Appraisal. Recently there Sound communication within an organ-
has been an increasing use of per- ization also allows each employee to
formance appraisal and compensation know exactly what is expected as far
as a means of increasing overall commit- as their responsibilities and organiz-
ment toward the organization (Enz ational mission statement and what is
and Siguaw, 2000). There are many happening within each organization
methods of performance appraisal that area.
Employees motivation in the luxury hotel industry 263

NEEDS AND APPROACHES TO WORK employees. However, there is no straightfor-


MOTIVATION AND INCENTIVES IN THE ward relationship between pay and effort,
HOTEL INDUSTRY and Maslow (1943) and McGregor (1960)
argued that work motivation has also
Employee turnover has been a large problem
psychological roots than were never taken
in the hospitality industry and some of
into consideration in Taylors philosophy.
the reasons cited are low compensation,
Maslow (1943) argued that humans have
inadequate benefits, poor working con-
a hierarchy of needs that range from the
ditions and poor worker morale and job atti-
low-level and basic (such as a need to eat
tudes. Byrne (1986) highlights that as well its
and sleep) to the high-level and complex
high labor turnover and labor intensive
(for example, a need for self-fulfilment).
nature, the hotel industry is characterized
Moreover, McGregor (1960) suggested that
by low job security, low pay, shift duties
conventional Taylorist practice was under-
and limited opportunities for promotion.
pinned by a profoundly pessimistic theory
The studies of Simons and Enz (1995) and
of motivation (Theory X), underpinned by
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Riley and Dodrill (1992) added that these


the assumption of bored employees who
characteristics seemed to be more extreme
dislike work and need coercion to be pro-
in the seasonal sector. Even though hospital-
ductive. While acknowledging that the
ity employees are not a homogeneous group
assumptions of Theory X may hold true
they share a number of common character-
under a limited set of conditions, he argued
istics: a wide range of skills are required
that work motivation was much more com-
but there are also high numbers of unskilled
monly underpinned by employees self-
staff; staff may live on the premises; many
generated drive to better themselves and
employees are poorly paid; staff often
fulfill their own potential (Theory Y).
expect to work long and unsocial hours;
McGregor (1960) argued that traditional
there is a large proportion of female, part-
organizational practice approach place too
time, casual and foreign staff; labor mobility
much emphasis on the role of lower-order
and turnover are high. Consequently, the
needs as motivators of workers beliefs. In
analysis of employee needs in the tourism
contemporary Western society, the physio-
industry constitutes one of the main pre-
logical and safety needs of most workers
suppositions both for understanding their
are satisfied and this means that their beha-
attitudes and motivating factors and for
vior is more commonly motivated by
designing an incentive system which will
higher-order needs. Moreover, Alderfer
contribute to the improvement of organiz-
(1972) distinguished between a persons
ational performance.
needs for existence, relatedness and
One of the most influential approaches
growth, and McClelland (1987) argued that
that try to explain the phenomenon of work
motivation to work reflects a higher-order
motivation is an analysis of peoples needs.
need for achievement which was different
One of the very clearest analyses of
from the other lower-order needs, the need
peoples motivation is contained within the
for affiliation and the need for power.
principles of scientific management. Taylor
Similar ideas to these are also central to
(1911) argued for the importance of selecting
Herzbergs (1966) motivation hygiene
only the best workers, ensuring that they are
theory which proposed that managers
treated and work as individuals and paying
should put their energies into providing
them only for what they produce underlying
avenues for the satisfaction of employees
the significance of just transactional and
personal needs in order to get the best
economic relations between employers and
from them. According to the theory, people
264 Maroudas et al.

have two major types of needs: hygiene with a fair degree of consensus and is
needs, which relate to the context in which argued that has great relevance in the hospi-
work is performed. These include work tality industry. It is argued therefore, that in
relationships, working conditions, supervi- hospitality organizations, one way to
sion, salary, company policies and adminis- develop high performance is to understand,
trative conditions, status and security. take care of and meet employees individual
When these factors are unfavorable, then needs, such as financial incentives, recog-
according to the theory, job dissatisfaction nition and skill development (Riley, 1996).
results. However, the fulfilment of hygiene According to Simons and Enz (1995),
needs cannot in itself result in job satisfac- employees from different departments
tion, but only in the reduction or elimination responded in a different way to the job
of dissatisfaction. On the other hand, people rewards offered by the organization,
have motivator needs which are related to suggesting that individual differences and
things involved in actually doing the job. individual-level variables should be con-
These include achievement, recognition, sidered when designing incentive programs.
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work itself, responsibility, advancement Hierarchical management level may contrib-


and growth. According to the theory, the ute to different employees being motivated
factors that lead to job satisfaction are by the satisfaction of different needs. Individ-
those that satisfy an individuals need for ual studies have shown, for example, that
self-actualization (self-fulfilment) in their recognition and appreciation, rewards and
work, and it is only from the performance salary and improving task performance are
of the task that individuals can enjoy the among the three main factors that motivate
rewards that will reinforce their aspirations. managers to have a good performance in a
Compared to hygiene factors, which result in number of different contexts (Analoui, 2000;
a neutral state neither satisfied nor dissatis- Lundin and Soderholm, 1995). However, for
fied, when present, positive motivator lower-level employees, the satisfaction of
factors supposedly result in job satisfaction. needs such as self-development, team work,
The theory led to the widespread enthu- salary and rewards seem to have the most
siasm for job enrichment (rotating, enlarging impact in triggering motivation and on end
jobs), defined as an attempt by management in their performance (Spreitzer, 1995).
to design tasks in such a way as to build However, to date very little has been done
in the opportunity for personal achievement, to investigate whether there are differences
recognition, challenge and individual growth among employees at various levels of hierar-
(Furnham et al., 1999). Among other things, chy within the same organization.
this involved attempts to increase individ-
uals accountability for their own work,
METHODOLOGY
increase their control over discrete and
varied elements of a particular job and The empirical research was conducted in all
allow workers the opportunity to become the multinational luxury hotel chains in
authorities and experts in relation to those Athens. Luxury hotel chains have tradition-
elements. ally provided superior facilities and services.
Summarizing, the general message to However, over the last decade, customers
emerge from needs-based research is that have increasingly demanded greater value
employees motivation will be greater to for money, accompanied with demands for
the extent that they are allowed to self-actua- higher levels of services and facilities. Conse-
lize, grow and progress as individuals. This quently, we chose hotels which seek their
conclusion is one that has been reached differentiation through the provision of
Employees motivation in the luxury hotel industry 265

high-quality services, and the development exchange, 6 expenses cover for seminars,
of a strong customer orientation through 7 bonus, 8 honorary leave, 9 extra
their HRM strategy. The existence of a per- finance allowance); how important each of
sonal relations network with the managers these motivators is to the employee (1 very
of the luxury hotels in Athens permitted the important, 2 important, 3 indifferent).
conduct of a number of preliminary inter- Additional questions: Does the company
views with the HR managers of these reward good performance? (1 always, 2
hotels, which helped the development of sometimes, 3 never); Does the hotel policy
the goals and the research design of our promote employees who perform at their
study. best? (1 always, 2 sometimes, 3 never).
A questionnaire was developed which con- In order to increase the response rate, the
sisted of three parts. Hotel identity: In the first number of questions was kept minimum
part, basic information was asked about the 13. The questions were simple, clear,
hotels identity (1 name, 2 chain, 3 without special terminology, without
capacity). Biographical data: In the second requesting personal information and they
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part, a number of questions were used to were as comprehensive as possible for all
gather information about employees educational levels of employees.
gender, hierarchical level in the organization The survey population was 2,000 employ-
(1 employee, 2 manager), age, education ees coming from six luxury hotels. The repre-
(1 secondary education, 2 vocational sentative sample quota, which was randomly
education, 3 BSc, 4 MSc) and organiz- selected, consisted of 6% of the above
ational tenure (1 up to 2 years, 2 25 number. To ensure that our sample was
years, 3 more than 5 years). Motivators reliable and accurate, we chose the following
offered: In the third part, a number of closed quota controls: (a) the number of employees
questions were used to measure the regular in each hotel and (b) the proportion of
motivators offered (1 meals, 2 transfer, managers and employees in each hotel.
3 insurance, 4 brand card, 5 gifts on Importance was given to the distribution of
feast days, 6 events) or ad hoc motivators the questionnaires to different departments.
offered (1 excursions, 2 seminars in Table 1 depicts the total number of staff
hotel, 3 best employee of the month, and the sample selected from each group.
4 best appearance of the month, 5 staff For example, in Sofitel Athens three

Table 1 Total number of staff and sample selected

Total sample

Total number of
Hotel Managers Employees staffs

Sofitel Athens 50 3 141 8 191 11


Hilton Athens 44 3 380 23 424 26
Grand Bretagne 66 4 335 20 401 24
Intercontinental Athens 40 7 503 30 543 37
Holiday Inn Athens 42 3 152 9 194 12
Ledra Marriott Athens 28 2 208 12 236 14
1989 124
266 Maroudas et al.

questionnaires were distributed to the man- years and 15.3% had more than 5 years of
agers (6% of total number of the managers), tenure.
and eight to the employees of the hotel (6%
of total number of the employees). In both
cases the questionnaires were distributed RESULTS AND DISCUSSION
to different departments. Figure 1 depicts a comparison of the most and
least important motivators in order to indi-
cate how employees perceive the motives
Profile of Respondents offered by their respective companies and
Of the 124 questionnaires, 85 useful how they understand the importance attribu-
responses were returned, representing a ted to them. The majority of the employees
68.5% response rate. Of the 85 respondents, agreed that the provision of financial incen-
50.6% were male and 49.4% were female. tives as well as the provision of support for
General staff accounted for 69.4% of respon- personal development constitute very
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dents, with managers accounting for 30.6%. important incentives for the reinforcement
Further, 25.9% of respondents were aged of their performance and job satisfaction.
below 25 years of age, 48.2% between 26 Overall, 61% agreed on the importance of
and 35, 22.4% between 36 and 45 and seminars, 60.6% on the importance of
finally 3.5% of respondents were aged bonuses, 59.5% on the importance of brand-
above 45. 17.6% of the respondents had carte and 58.5% on the importance of gifts
completed secondary education, with offering to employees. The above-mentioned
57.6% of them finishing vocational training job-related motivators concern distinct best
(technical institute), 18.8% university edu- practices, since the aim of the financial
cation and 5.9% postgraduate education. benefits is the reinforcement of performance
Of them 45.9% had up to 2 years of tenure appraisal and effective compensation, while
in the current company, 38.8% had 2 5 the perceived importance of the organization

Fig. 1. Importance of organizational incentives


Employees motivation in the luxury hotel industry 267
Table 2 Cross-tabulation of perceived incentives as a function of gender

Gender Very important Important Indifferent x2 and p-value

Events Male 41.00% 53.80% 5.10% x2 8.9, p 0.011


Female 25.60% 43.60% 30.80%
Excursions Male 32.20% 60.70% 7.10% x2 7.8, p 0.020
Female 12.10% 54.50% 33.30%
Best employee Male 43.20% 51.40% 5.40% x2 7.6, p 0.022
Female 33.30% 56.40% 10.30%

of seminars indicate the new form of psycho- In terms of gender, males appear to place
logical contract development between the much more emphasis than females on the
organization and the employees, which is participation in events organized by their
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mainly based on expectations of personal respective company (x2 8.949, p , 0.05),


development through training (Millward and excursions (x2 7.825, p , 0.05) and on
Kyriakidou, 2003). On the other hand, a the best employee of the month (x2 6.586,
large number of employees adopted an indif- p , 0.05). This finding has been supported
ferent attitude toward the incentives of the by other studies (Gherardi, 1995) which indi-
best appearance of the month 23.9%, the cated males enhanced need and practice of
organization of excursions 21.3% and events socialization beyond the narrow organiz-
17.9%. ational boundaries reproducing in this
In order to examine the existence of poss- sense within the organization the gendered
ible relationships between the individual relations that exist at home (men are
variables and the incentives offered in always out while women stay at home).
luxury hotel employees and managers, we Moreover, the importance that they attri-
used cross-tabulations. The findings of the bute to being the best employee of the
cross-tabulation analysis (Tables 2 4) can month indicates males competitive stance
be summarized as follows. toward their employment relationships that

Table 3 Cross-tabulation of perceived incentives as a function of age

Age Very important Important Indifferent Statistical test

Insurance 225 72.70% 9.10% 18.20% x2 18.9, p 0.004


2635 55.30% 44.70% 0%
3645 35.70% 35.70% 28.60%
46 0% 100% 0%
Seminars 225 81.80% 18.20% 0% x2 8.2, p 0.041
2635 52.60% 47.40% 0%
3645 60% 40% 0%
46 0% 100% 0%
Bonus 225 47.40% 52.60% 0% x2 6.1, p 0.05
2635 64.70% 35.30% 0%
3645 75% 25% 0%
46 0% 100% 0%
268 Maroudas et al.
Table 4 Cross-tabulation of perceived incentives as a function of work experience

Work experience Very important Important Indifferent Statistical test

Extra financial allowance ,2 yrs 26.90% 73.10% 0% x2 9.4, p 0.05


25 yrs 42.30% 46.20% 11.56%
.5 yrs 66.70% 22.20% 11.10%

has been supported by a number of similar companies as well as for recognition appreci-
studies in different industries. On all the ation and praise for work done in terms of
other dimensions, there are no significant the best employee of the month, than their
differences between the sexes. In terms of male counterparts. Hotel employees aged
age, people belonging in the age range 25 between 25 and 35 considered the need for
35 perceived the need for insurance insurance and development to be more
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(x2 18.943, p , 0.05) and development important than did other age groups indicat-
through seminars (x2 8.264, p , 0.05) as ing the significance of development and
much more important than any other group learning opportunities are still valid.
of employees. This is not at all surprising Finally, employees with medium work experi-
since this age group is the most vulnerable ence attributed much more importance to
under the present economic and social the need for further financial incentives.
climate characterized by employment inse- These results indicate that gender, age and
curity and flexible employment relations. work experience play a significant role in
The age group of 36 45 perceived the need influencing employees perceptions of the
for the receipt of bonuses (x2 6.197, p , motivational factors. Hotel companies can
0.05) as much more important than any utilize these findings to tailor-make more
other age group. Finally, in terms of work appropriate motivational programmes for
experience, people who had between 2 and their employees.
5 years of work experience perceived the Furthermore, in view of the findings of the
need for extra financial allowance present study, two initial recommendations
(x2 9.483, p , 0.05) as much more import- are made: (a) provide quality training and
ant than any other group of employees. development programmes; (b) consider the
provision of financial benefits that make
sense to the employees.
CONCLUSIONS
As hotel employees in luxury hotels in
Overall, the results from the present survey Greece considered opportunities for deve-
indicate that most of the employees in our lopment to be important, hotel employers
sample had a strong concern for financial should consider the use of training and
incentives as well as for opportunities of per- development programmes to motivate good
sonal development especially through the performance. It is suggested that hoteliers
provision of seminars organized by their should place more emphasis on both
respective employers. Moreover, this internal and external training opportunities
survey showed that gender, age and work for their staff. For example, arranging on-
experience had an interaction effect. Male going quality in-house training programmes,
employees had a high preference for the soliciting external training opportunities for
organization and participation in events employees and providing more generous
and excursions organized by their respective education subsidies or allowances could
Employees motivation in the luxury hotel industry 269

work to satisfy this need. Eventually, hotel when appropriate. With the help of the HR
employers should place more emphasis on department, a series of planned job redesign
career planning for hotel employees. This efforts can be put into place, including
has traditionally been a weak area of HRM job enlargement, job enrichment and job
in the hotel industry. The literature consist- rotation (Haynes and Fryer, 2000).
ently shows that for many employees, the Clearly it is not possible to generalize from
new investment criterion (on which their the research we conducted in six luxury
contribution to an organization is predi- hotels in Athens, about the relationship
cated) is opportunities for development between HRM policies and practices and
(Cavanaugh and Noe, 1999). This could be organizational performance in luxury hotel
said to hold a key to maintaining and/or industry, which is an important limitation
forging relational relationships in contem- of our study. However, our research contrib-
porary organizations (Millward and Herriot, utes on the one hand to the understanding of
2001). As long as employees feel that they employees preferences regarding the
are developing (e.g., learning new transfer- supplied job-related incentives, and on
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able skills, acquiring important knowledge, the other, to the measurement of the
gaining personal credibility and confidence) effects of specific independent variables
and thereby increasing their employability, on employees perceptions regarding
organizations can, to some extent, overcome the implemented HRM practices. Further
employee concerns about future job insecur- research is necessary in order to determine
ity by facilitating subjective security by fur- more precisely the effects of the
nishing maximum personal potential. In implemented HRM practices on employees
doing so, the organization can secure the service behavior and consequently on organ-
human investment it needs to succeed in izational performance.
financial terms.
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