CHAPTER 2

REVIEW OF LITERATURE

2.1 Introduction
Indian fast food market is about to grow at a CAGR of 18% by 2020 due to
changing consumer behavior and demography. Fast food market in India is expected
to be worth US$ 27.57 billion by 2020. About 10% of the fast food market in India
is in organized sector. Vegetarian fast food constitutes of around 45% of the whole
fast food market in India and is expected to grow at a CAGR of 18% by 2020. Fast
food Casual dining restaurants (CDRs) market in organized fast food sector in India
is projected to grow at a CAGR of 27% by 2019-20.

2.2 Review of Related Literature

Jauhari (2003) reported that there are several players in the industry. Few of
them are multinational brands like Pizza Hut, McDonalds, KFC, Domino’s Pizza,
Coffee Day and Barista while others are Indian brands like Nirulas, Indian Bread
and Pizza corner.

The major fast food brands like, McDonald’s, Dominos, KFC and Pizza Hut,
all entered India in 1996. Currently all of them have nation-wide presence and more
than several 100 outlets. Pizza Hut has more than 360 retail outlets and Domino’s
has more than 378 outlets. The success of these players can be because of the
application of successful production and supply chain practices to deliver their
unique brand image. Leidner (1993), Ritzer (2011) and Schlosser (2005) stated that
there is standardization and routinzation in all these chains.

Jauhari (2003) further reported that the Indian fast-food brands like Indian
Bread, Pizza Corner and Nerula’s lack such nationwide presence, though they
started at around the same time and these brands have only less than 100 outlets.

Kannammal and Suvakkin (2016) conclude that the Fast Food Industry was
highly competitive by large companies. The best way for the big Fast Food
Companies to stay in touch with their customers was through marketing studies. The
Fast Food Company needs to know what key customers will buy before developing
Chapter 2- Review of Literature 21

marketing and advertising strategies. Fast food companies used market segmentation
as a marketing tool. According to their study if Fast Food Industry of India is follow
this marketing strategy the fast food Industry will increase the GDP by giving
importance to an Indian industry and on the other hand the Indian economy will gain
if Indian fast food and food sectors follow the emerging marketing strategies
mentioned above.

Zohar (2000) concluded that it has become popular increasingly popular to

differentiate between strong and weak employee motivation. The discussion here is
that strong motivation has a greater effect on employee’s behaviorioual performance
and it is more directly related to the turnover. In a strong culture, the organizations
important values are both strongly held and broadly shared. The more members who
accept the important values and the greater their commitment to those values, the
stronger the culture is. Consistent with this definition, a strong culture will have a
deeper influence on the behavior of its employees because the high degree of shared
ness and power creates an inside climate of high behavioral control.

Maertz et al. (2003) concluded that some new employees in the organization
may not fit the culture in the new organization and decrease the motivation to work
in the new environment Employees may not accept the new culture and will felt the
new employer is not suitable and withdrawal. Some employees are trying to learn
and accept the new culture in the fast food restaurant. However the time of failure
will result’s in employee’s low motivation and rather choose to turnover (Aarons &
Sawitzky, 2006). Organization should guide and explain to the employees about the
culture of organization to enable employees to learn and accept the new culture in
the shortest time.

Kinzel et al. (2005) indicated that the working condition is a most influential
element in effecting the employee job satisfaction. Employees that perform in
unpleasant working conditions will affect employee to demonstrate a low job
performance because of they are not satisfying in the environment.
Chapter 2- Review of Literature 22

Siti and Zahari (2006) reported that working environment condition such as
noise, temperature, humidity, light & less motivation will affect the job fulfillment.
A superior working atmosphere will encourage the employee perform better in their
tasks which also enhance the level of job satisfaction. Whereas, a frustrated working
environment will decreased the employee job performance and leads to low job
satisfaction.

Bodla & Hameed (2008) suggested that the employees turnover intention is
serious issue especially in the field of Human Resource Management. This is
focusing on market clearing intensity on the costs associated with high labor
turnover. Turnover costs consist of cost of recruiting and selecting new employees
and as well as the cost of loss of sales due to the low experience & low motivation
of new worker. If an employee intends to leave and contributed to turnover rate, the
losses of a company bear is much greater than paying a high wage to the employee.
There are five variable that been identified, which is the fulfillment with pay,
satisfaction with working conditions, happiness with supervision, organizational
commitment, and low job stress with highly motivation provided by the
organization.

Faheem Ghazanfar et al. (2011) reported that remuneration acts as a

motivator for the employees and employer should take into consideration to attain a
greater productivity and better performance. Compensation can be in the form of
allowances, salaries as well as benefit such as employee job satisfaction pension and
paid leaves. Promotion a type of non-financial compensation for the employees and
this will motivate the employees too in order to get increment in salaries after
getting promotion. The compensation will affect employees working behavior and
level of job satisfaction.

Gosser (2011) studied the relationship of managerial justice, demographic

characteristics and organizational socialization with the dependent variable of intent
to stay. The intent to stay was main criteria of variable that predicts actual turnover
behavior. This research further supports the practical relevance for HRD leaders in
fast food companies to understand the control and relationship the information to
Chapter 2- Review of Literature 23

create practices that will be increases employees intention to stay which will then
translate to retaining the employee for longer time.

Iaffaldano and Muchinsky (2011) concluded that the working environment

have a positive relationship to job satisfaction while Zeytinoglu and Denton (2005)
also argue that the working environment might affect the employee either stay or
leave the company. According to Ghosh et al. (2011) reported that employee may
easily handle over the working condition if they are involved in a good working
environment, thus they feel more fulfilled. Some more, it may positively influence
the company productivity and the employees morale Dana (2010).

Faheem et al. (2012) investigated that many respondents still believed a

healthy working environment although they require working in an unsecure
environment. On the other hand, working environment is more influencing the
employees at work than individual, environmental and organizational attributes.
Cattell et al., (2012) found out that the working environments can share the
characteristic which include building common self-concepts, inspire the common
skills and award the common value of the environment.

Kahn (2012) found that an employeeable experience commitment on any one

of the proportions at a point of time which the engagement is refer to psychological
engagement, emotional engagement and also cognitively engagement. This
definition indicates that job fulfillment is related to the cognitive aspect of employee
engagement. Moreover, employee engagement is also defined as the degree to which
employees feel job satisfactions and an emotional connection to the success of their
business and which will result in improved yield, innovation and retention.

Kumar et al. (2012) reported that the concept of employee turnover intention
was a most important factor in organization. Many researchers were come up with a
lot of factors that could give impact on turnover intention. However there were other
factors such as organizational commitment, organizational person and organizational
culture fit also to give impact towards turnover intention. This research found the
Chapter 2- Review of Literature 24

effect of organizational culture, person organizational and organizational

commitments have an impact on turnover intention in Fast Food Industry.

Dzama (2013) evaluated the service encounter in the Fast Food Industry in
the Midlands Province. Six Fast Food Outlets from Gweru Urban were used in the
study. The key findings of the study were that the most used service encounter types
in Fast Food Outlets are face-to-face, telephone and remote service encounter,
though face-face service encounter is mostly pronounced type. The main causes of
service encounter failures were found to be people, physical facilities and processes
related. Also it was found that if service encounters are executed properly, they
could be used organization as source of competitive advantage and enhance viral
marketing. However service encounter failures may lead to negative word of mouth.
Right appearance and right personality came out, as the most needed attributes
required of contact personnel over attributes like education and previous experience.

Fong and Cheung (2013) analyzed the work-family conflict approach to the
quit objective of managerial staff of a fast-food chained restaurants in Hong Kong.
The aim of study is to examine the causal relation between work schedule, job
conflict and job ambiguity to work-family conflict (WFC) and gender, age, and
WFC to quit intention of the said managerial staff. The questionnaire used was
based on previously tested questions on the related constructs. In this research the
male was found to have lower quit intention as compared to female in managerial
post. The study can be explained by the traditional Chinese culture in relation to
career -based and job -based perception for male and female respectively. As well as
the higher family pressure perceived by female than male in Chinese tradition may
be another higher quit intention reason. This research helps fast-food operators to
formulate strategies relating to recruitment, work-life stability, work schedule
preparation, motivation and managing of gender employment perception differences
for the reduction of staff turnover, and the enhancement of business productivity and
profitability.

Lumadi (2014) found some factors that influence employee job

dissatisfaction such as job security, training, job responsibility, and curriculum
Chapter 2- Review of Literature 25

transformation process. The researcher further added that empowering employees

can promote new effective school curriculum. Research findings include the
suggestion that employees must have an active participation in school
transformation process including in decision-making.

Moore (2015) has been found in their research that the fast food industry is
unprincipled. The training helps employees learn what they are accountable for
working. The employees were provide a pre-training survey, then participated in a
case study training session, and finally took a post-training survey. The Food
Industry Ethical awareness was increased. The study also recommended to learn
how long the increase of ethical awareness will last and if future training is
necessary.

Bebe (2016) concluded in his research that the employees of fast food
industry turnover in U.S. has been high, the average rate is 150% per year. This
research is based on the Herzberg’s 2-factor motivation-hygiene needs theory, which
explains job satisfaction factor and job dissatisfaction factor. The research was
concluded statistically significant relationship between job satisfaction and
employees turnover intention (p<0.01), dissatisfaction factor and employees
turnover intention (p<0.01). During the job satisfaction factor, responsibility had a
stronger relation with employee turnover (-0.52) as compared to other factors. The
study conclusions are mainly to inform fast food mangers in taking actions to
decrease employee turnover, resulting in improved long term growth of business and
financial sustainability of business.

Cross (2017) studied the overall turnover of employees in the Fast Food
Industry and found that it is 50 percent. The annual employee turnover costs of fast-
food restaurants are $10 billion. It was to analyzed that the strategies of 5 fast-food
restaurant managers in the Midwestern United States maintained higher employee
retention than did peers in their districts. These findings might contribute to social
change by helping managers develop strategies for improving employee retention,
and in turn, financial performance of employee. The Fast Food Industry’s employees
Chapter 2- Review of Literature 26

could advantage from financial performance and improved retention, as they could
contribute to new employment opportunities and increased career longevity.

Kamal (2013) reported that the job participation of employees has been
found decrement over the change of time. So the issue is related with employee’s job
involvement is getting concern from other researchers due to lack of previous
research done for it. In this study the main factors of job characteristics model
(JCM) (task identity, skill variety, task significance, autonomy and feedback of the
job) that affects employee job involvement of KFC Fast Food Industry in Malaysia
were studied. The quantitative method was used as method of questionnaires in
order to data collection from respondents and closed-ended question method was
used for distribution. Further multiple regressions revealed that the five sources of
factors (skill variety, task identity, task significance, autonomy and feedback of the
job) had significant positive relationship with employee job involvement in
Malaysia.

Ramana and Balaji (2015) explored the ethical issues also in US fast food
industry. Some of the important issues explored in the study include ‘occupational
safety’, ‘public health’, ‘service at fast food restaurants’, and ‘perception about the
fast food industry’. The author concluded that the problems related with the fast
food industry can be solved if the firms make appropriate changes in their business
practices. Also by virtue of the high profit margins enjoyed by firms in the fast food
fast industry, fast food restaurants can make the products available and services of
better quality to consumers at a reasonable price.

Beriales et al. (2017) studied that the level of job satisfaction among
employees in selected fast food ventures in Iloilo City in terms of working
condition, pay and promotion, use of skills and abilities and work activities. The test
for significant differences in the level of job satisfaction among employees revealed
that there was no significant difference in the level of job satisfaction when grouped
according to age, gender, employment status and establishment. Based from the
findings it is recommended that the management of the fast food establishments
should look into making improvements on some factors specifically on pay,
Chapter 2- Review of Literature 27

motivation and promotion potential since these have the lowest cluster mean among
the four areas.

Yusoff et. al. (2016) revealed that it is worth for the fast food restaurants to
have the hearing impaired as they in general are having a positive attitude,
motivation, obedience and possess the skill that suit to their ability. Besides, they are
much easier to manage, control and less demanding and these special groups are
committed and loyal to the organization that they work in. Some implication for the
managers of fast food restaurants, the government and other industry players as a
whole is drawn from this study.

Abdul (2010) investigated that there are different motivational factors

through which employees can be motivated in fast food restaurants. In which the
main role of upper management is to work on human capacity and provide training,
the best working environment, salaries and wages and promotional and growth
opportunities to their employee. These are the most important functions highlighted
after empirical finding and analysis, however, other factors i.e. cultural values, stress
of work, respect and recognition are also important factors for frontline employee’s
motivation in fast food restaurants.

Nawaz (2011) concluded that the managers of McDonalds possess mentality,

which compiles more with the Taylor’s scientific theory in which, according to
managers, the employees are likely to work harder when they are being pressured
and supervised closely for the maximum expected output. It was further found that
the motivation of the McDonalds employees is low due to poor employer-employee
relationship, low wage rate and less reward.

Nnenna et al. (2011) proved that the rate of personal growth of the
employee’s in their workplace was not satisfactory with a rate of 56.1% respondents.
Also, the flexible time plan was not satisfactory to the workers because they were
being given a flexible time sometimes especially when their workplace is very busy.
In addition, the employee’s were not given the privilege of making decision in their
workplace especially in the areas that concerns them. However, the researcher
Chapter 2- Review of Literature 28

recommended that the fast food workers should be empowered in different ways, to
give them opportunities to share their views. Also, the skills should be developed
through coaching and feedback system.

The literature review examines topics including Herzberg’s (1959, 1974)

motivation-hygiene theory consisted with the primary theoretical framework for the
study. Maslow’s (1943) hierarchy of needs and the Hackman and Oldhams’ (1976)
job characteristics model, including strengths, limitations, and weaknesses of other
theories, and the reasons why Herzberg’s motivation-hygiene theory was the priority
theoretical framework. Other topics include the psychometrical scales such as Job
Satisfaction Scales (JSS) and Job Descriptive Index (JDI), including their
established reliability and validity properties that were used as a guide for choosing
the right scale for this study. The other parts of the literature review include the
variables used for the study such as job satisfaction independent variables and job
dissatisfaction independent variables, and the dependent variable turnover
intentions. The job satisfaction independent variables were (a) achievement, (b)
recognition, (c) responsibility, (d) work-itself, and (e) advancement and growth
(Herzberg, 1974; Herzberg et al., 1959). The job dissatisfaction independent
variables were (a) company policy, (b) supervision, (c) interpersonal relationships,
(d) working conditions, and (e) salary (Herzberg, 1974; Herzberg et al., 1959). Each
variable tracked in this study had empirical support from different fields of research
to support the relationship between variables. Other related topics described in this
section are employee turnover, causes of turnover, and implications of the turnover,
employee engagement, commitment, and employee retention.

Herzberg investigated the question: “what do people want from their jobs?”
(Swanepoel et al., 2003). There are different variables that can make people feel
either good or bad about their jobs. These factors were indicated by Herzberg as
intrinsic and extrinsic factors, which is where the name two factors theories
originated from. The intrinsic factors include advancement, recognition,
responsibility and achievement, while the extrinsic factors comprise of status,
security, company policy, administration, remuneration, supervision, and
interpersonal relations, which are referred to by Herzberg as “hygiene” factors.
Chapter 2- Review of Literature 29

These latter factors do not motivate employees, although they should be present in
the work place to placard them. Employees are motivated by internal values rather
than external values. Hence, motivation should be internally generated through those
intrinsic factors, which are known as “motivators”. Swanepoel et al remark that job
satisfaction is a function of challenging, stimulating activities or work content called
the variable of motivators, while job dissatisfaction is a function of the job context
called the hygiene factors. Herzberg believed that the opposite of “satisfaction” is
“no satisfaction”, and the opposite of “dissatisfaction” is “no dissatisfaction” and,
therefore, by removing the dissatisfies from a job will not make the job satisfying
(Robbins &Judge, 2009). Managers who seek to remove those factors that lead to
job dissatisfaction may bring about peace, but not motivation. Hence, instead of
motivating their own workforce, may end up placating them. Herzberg suggested
pay and working conditions as part of the hygiene factors that could nullify the
motivating effects of satisfiers such as promotion, prospects, recognition, and
personal growth”. Therefore, fast food outlets should not rely only on monetary
incentives in terms of satisfying their employees, since money alone will not
improve employees’ satisfaction and up performance. Therefore, there is a need to
complement intrinsic with extrinsic motivation elements, in order to achieve
organizational effectiveness and employee commitment.

Advancement and growth is one of the job satisfaction factors. Advancement

and growth refer to learning new things to enhance (on the job training) employee’s
competence (Herzberg et al., 1959). Advancement and growth can achieve by
training. Employees with proper and sufficient training are competent to do the
assigned job. Herzberg et al. asserted with proper and effective training, employees
can grow and advance their career. Salary and relationship with employees are
hygiene factors or job dissatisfaction factors (Herzberg et al., 1959).

Lumadi (2014) used the theory of Herzberg’s (1959) motivation-hygiene

theory for the exploration of factors that promote dissatisfaction for many teachers
to implement the new school curriculum. Lumadi (2014) found some factors that
influence employee job dissatisfaction such as job security, training, job
responsibility, and curriculum transformation process. Lumadi (2014) added that
Chapter 2- Review of Literature 30

empowering employees can promote new effective school curriculum. Research

findings include the suggestion that employees must have an active participation in
school transformation process including in decision-making (Lumadi, 2014).

Hung (2008) mentioned that employees are motivated to work harder and
raise their performance once their intellectual needs are fulfilled. On the other hand,
Abinowitz, Hall, Moch, and Kanungo (as cited in Hung, 2008) emphasized that
employees’ physical and mental circumstances would change when employees’ job
divergence with their life. As a consequence, these would affect their job
involvement and performance. Meanwhile, Freund (as cited in Hung, 2008) viewed
the job involvement as a fixed variable which critically control the employees’
working attitude, such as job satisfaction, tendency to resignation, and organisational
commitment.

In addition, Bartlett (as cited in Rowold, 2008) had found that job
involvement is positively influenced by employees’ subjective access to participate
in training. Nevertheless, there was an empirical research done by Osca, Urien,
Gonza´lez-&DPLQR 0DUWՍQH]-3HUH] DQG 0DUWՍQH]-Pe´rez (as cited in Rowold,
2008), where they found that employees who participate in training will lead them
have job satisfaction rather than involve in job involvement. Still, Rowold (2008)
proved that technical training able to cultivate employees’ job involvement besides
updating employees’ knowledge, skills, and abilities (KSA). These results give
support for contemporary training effectiveness model.

Based on the studies of Lee-Ross (as cited in Chiang and Shawn Jang, 2008),
the concept of ‘‘internal work motivation’’ can be defined as individuals with more
effort in their job would associated with have higher level of motivation. At the
same time, intrinsic can be known as natural belonging while extrinsic operating or
original from outside. Intrinsic work motivation refers to motivation driven by an
interest or enjoyment in the task itself while extrinsic work motivation refers to
monetary rewards.
Chapter 2- Review of Literature 31

Work involvement reflects attitudes and values towards a particular aspect of

life. Sekaran and Mowday (1981) believed that job involvement is greatly
influenced by human psychological factors. Individual is thought to own a certain
amount of desire or value, and hence they tend to work harder or more involved in
their job in order to fulfill their demand or values. Any changes in individual’s
possession of certain values or personal characteristics will drive their level of job
involvement to vary (as cited in Ho, 2006). This statement is consistent with Weber
that individuals with a strong work ethic tends to work harder as well as Rabinowits
and Hall, that the higher the individual’s internalised work ethics, the higher
possibility the individual to be involved in job, regardless his or her job contents (as
cited in Sharon and Elwood, 2002).

According to Lodahl and Kejner (1965), the value orientation of individual

towards work plays a central role to determine employees’ job involvement level (as
cited in Ho, 2006). Researchers such as Meglino, Ravlin, and Adkins, 1989;
Rokeach, 1973 also suggested that values are stable and hence it can be used in
predicting human behaviour over time (as cited in Sharon and Elwood, 2002). Also,
according to Mankoff, values greatly influence human motivation and achievement
(as cited in Ho, 2006) and Lock and Henne (as cited in Ho, 2006) concluded that
work values are thus an important determinant of individual’s job involvement as
individual’s work values have great impact on their work efforts as well as work
performance.
Chapter 2- Review of Literature 32

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