CHAPTER ONE

1.0 INTRODUCTION

Many hotel companies are having struggles in sustaining workers because the factors leading
to both satisfaction and loyalty are not established. Because of the labour-intensive industry,
having enough workers is crucial in order to maintain a smooth-running operation in hotels.
Even though it is the 20th century, and the world is revolving with technologies, hospitality
industry still requires a human touch and services that robots cannot offer. This issue has
been addressed by many researchers before from different countries and it has yet been
resolved including in Malaysia. There might be some influence in terms of economic growth
and population issue, but this study is not focusing on this factor. This proposal will be
focusing on the individuals needs as well as helping hospitality industry to become an
industry that people would invest in because it is proven profitable.

According to Department of Statistics Malaysia (n.d.), the service sector in Malaysia has
been the largest contributor to its GDP, hence, should be considered as an important industry
to focus on, moving forward. Due to the high rate of employee turnover in hospitality
industry, it made many hospitality service providers like hotels have issues in making
themselves a profitable entity as individual companies. Therefore, it seems like there is some
issues that has yet to be discover in individual levels to see what actually is going on with the
workers today, what would attract them to stay and work in a company and what are the
things that able to create sense of loyalty towards their job and towards the establishment.

It is suggested that managers in the service industries will use the results of this proposed
study to establish successful employee training programs by stressing the satisfaction
variables that strongly correlated with the loyalty variables. Furthermore, as the research
proposed to involve the front-line workers, including the back of the house staff. If the
findings are identical, employee satisfaction and loyalty theories will also apply to all hotel
workers, encouraging hotels to create standardized, efficient and cost-savvy training
programs for all employees, to improve employee satisfaction and loyalty in the shared
interest of the employee and the company.
1.1 BACKGROUND OF STUDY

At the moment, a majority of hospitality service providers are having employee turnover
issue due to many factors like wages, benefits and work life balance (Bryant & Allen,
(2013); Chemirmir et al., 2017). There are many researches that has proven that these
factors do influenced the high rate of employee turnover. According to Abdullah et al.
(2009), the hotel industry in Malaysia has been noted in the service sector as a possible
development opportunity. The high turnover levels of staff in the hotel industry however
hinder production. Most hotel organisations do not recognise the factors which contribute
to staff satisfaction and the resulting loyalty, had faced difficulties in retaining their
employees. Reports seek to classify factors that make workers stay in their current
workplace. Furthermore, the relation between job satisfaction and loyalty are needed to
be examined (Abdullah et al., 2009).

The satisfaction of employees is often used to describe the pleasure, fulfilment and the
desire of workers at work. They are happy. Satisfaction of workers is a factor in
motivation and performance of workers and organizational social standards. If an
employee is happy with the working conditions, they would want to remain in the
company. In addition, the longer an employee works for a company, the more valuable it
becomes, particularly in the service sector. As stated in Abdullah (2011), Heskett et al.
(1997) said employee training programs would help ensure employee satisfaction and
loyalty. Training is also among the main factors of satisfaction for employees.
Companies use performance assessments or appraisal system to provide staff with
specific input on their job and to explain rises in pay and incentives and termination
decisions (Silver, 2019). Therefore, with an effective and attracting training programmes
which is a part of the career development, it will encourage the employee to stay in the
company and hence, create loyalty towards their job.

Employee loyalty can be defined in relation to a process that creates those attitudes.
Loyalty has two inner and outer dimensions. Loyalty is essentially a connection to
emotion. The emotional components are the internal dimension. It contains the emotions
of love, involvement and commitment. Employers can consider the feelings of their
workers and workers who face a problem should speak with the employer's advisors. The
employee commitment to the company can be increased by reducing the revenue ratio.
The external dimension then has to do with the manner in which loyalty is displayed. The
aspect comprises the behaviours showing the emotional factor and is the most evolving
component of the loyalty (Chan et al., 2012). The links between community, structure
and leadership are managed to build up employee loyalty. This is effective because
employees are given enough empowerment towards their job by the employee, hence, it
provides a trust between employee and employer (Cunha et al., 2002).

According Abdullah (2011) who quotes Heskett (1997), customer satisfaction is

connected to service value and the value of service is linked with the productiveness of
the employee while productivity of employees is related to employee performance.
Hence, the model chain of relationships between income and growth is related to the
customer’s loyalty and uniquely relates to employee loyalty. Hence, proper rewards and
recognition are considered as the factor that will create job satisfaction and job loyalty
amongst workers.

Additionally, this study is proposing to investigate the relationship between career

development, rewards and recognition, working conditions, as well as relationship with
superiors can influence job satisfaction, and create job loyalty. This study is conducted
among the workers of YTL Hotels in Klang Valley, Malaysia.
1.2 PROBLEM STATEMENT

Hotel industry in Malaysia is one of major contributor in the country’s GDP. As reported
by Ministry of Tourism Malaysia, with about 26 million tourists visiting Malaysia in
2019, an increment of about a million of tourist from 2018, proves that Malaysia is a
country that tourist likes to visit as we have a unique nature background that makes them
eager to explore more. Therefore, Malaysia’s hotel industry is having a rapid growth.
The high turnover levels of employees in the hotel sector, however, hinder the industry’s
production. Many hotel organizations face issues with employee retention because the
company can't understand the drivers of employee satisfaction and the loyalty that comes
with it.

Retention experts say that hotels spend thousands of dollars preparing to replace an
experienced employee leaving every year with every new employee. The fact that an
employee loss costs about one and a half times its annual salary is no longer surprising
(CHA International, 2009). Recruitment of new employees therefore requires an activity
that takes time and costs which may directly affects to the bottom line of the company.
The hotel business faces a higher turnover rate from employee loyalty to the company.
This could be linked to the satisfaction of the employees given by the company (Chan et
al., 2012). Besides that, hotel industry in Malaysia mainly, they focused on profit-
making, rather than sustaining and appreciating their workers. Therefore, it was not an
industry that appealing to the local workers to stay on as they keep looking for a more
satisfying job that fulfil their needs (Seema et al, 2017). Since other research have
proven that wages and benefit have direct relation to job satisfaction, it is still
unfortunate the fact that there is still high employee turnover in hotel industry today. Due
to this matter, it is important that we understand what workers of hotel industry need in
order to commit themselves to particular workplace. Hence, this study suggests
investigation on whether good career development path, rewards and recognition,
working conditions, as well as relationship with superiors can affect job satisfaction
which then, can influence the job loyalty in hotel industry.
1.3 RESEARCH OBJECTIVES

1. To investigate the relationship between career path and job satisfaction among
YTL Hotels’ workers in Malaysia.
2. To examine the relationship between rewards and recognition with job
satisfaction among YTL Hotels’ workers in Malaysia.
3. To examine the relationship between working conditions and job satisfaction
among YTL Hotels’ workers in Malaysia.
4. To examine whether relationship with superior has any effect towards job
satisfaction among YTL Hotels’ workers in Malaysia.
5. To investigate to what extend that job satisfaction becomes a mediating factor
towards job loyalty among YTL Hotels’ workers in Malaysia.

1.4 RESEARCH QUESTIONS

Based on the issues described in the problem statement, the goals of this research are
defined. Several questions have been formulated to perform this research:

1. How career development path and job satisfaction are related among YTL Hotels’
workers in Malaysia?
2. How rewards and recognition can affect job satisfaction among YTL Hotels’
workers in Malaysia?
3. How working conditions can affect towards job satisfaction among YTL Hotels’
workers in Malaysia?
4. How relationship with supervisor can affect job satisfaction among YTL Hotels’
workers?
5. To what extend is job satisfaction mediates job loyalty in YTL Hotels’ workers?
1.5 SIGNIFICANCE OF STUDY

A variety of aspects of the hotel industry can benefit from this report. The study will first
of all help the creation of hotels, as fostering loyalty to employees will increase the
company's productivity. Productivity benefits from the complexity and competence of
the workers. The happier workers would then have a higher external standard of service
that customers receive and evaluate, which will improve customer satisfaction.

Loyalty of employees may come from several different sources, including position
uncertainty, flexibility, supervisory quality, social relationship quality and organizational
support. Furthermore, attitudes and actions of workers play a significant role in job
efficiency. In this regard, the principal duty of employees is to provide hotels with a
sustainable competitive advantage. A study conducted by Weaver notes that an increased
employee satisfaction will reduce employee turnover cost by 45 percent. Therefore,
higher employee satisfaction should be preserved in a hotel industry to reduce employee
absence and turnover. In addition, retention of workers may also play a key role in the
financial health of a company as replacement employees can cost an average employee
wage of 150 percent or more (Bliss, 2001).

In addition, this study will enable the hotel industry particularly YTL Hotels’
managers to understand the factors that can improve employee satisfaction and
management should focus on that employee loyalty to achieve the company's goals.
Factors such as career development path, rewards and recognition, working conditions
and relationship with superiors are the independent variables of this research. It also
serves as a potential guide to the issue of employee loyalty for any other researchers.
1.6 LIMITATIONS OF STUDY

This study is based on previous researches that suggested to investigate on the

relationships of all independent variables identified above with job satisfaction.
However, not many researchers conducted previously relates the independent variables
with job satisfaction and job loyalty.

This study may not represent the entire hotel industry in Malaysia because it only
focusing on YTL Hotels where all YTL Hotels are ranked as 5-star hotels. Besides that,
this study is open for all operation workers in YTL Hotels which is the ones in front of
house and back of house, at every level of position.

1.7 DEFINITION OF TERMS

Employee Loyalty: Employees being committed to the success of the organization and
believing that working for this organization is their best option (Iqbal et al., 2015).

Career development path: An individual's career development is a lifelong cycle

including childhood growth and transition, formal education experience and the
advancement phases in the job and retirement period of the person (Baer et al., 2008)

Rewards and recognition: A formal, unbiased and equal trade is a reward. A

commodity or financial value that reflects on performance. Recognition is a connection
between two or more individuals. Recognition is a reversion to the effort and
commitment and results of an employee (Baskar & Rajkumar, 2015)

Working Conditions: Employee engagement with the organisational environment

establishes working conditions, and it requires psychosocial working practices (Ipol &
Okpa, 2019).
 Relationship with supervisors: Employee relations with co-workers and managers can
improve social value and organizational engagement. The interaction should strengthen
bonding and identity, which increases psychological meaning. Appreciation by
colleagues and managers would ensure that workers feel happy and increase health at the
workplace. (May et al., 2004)

Job Satisfaction: Ultimately the most productive and profitable workers who love the
work and are rewarded for their contributions will be their company (Chan et al., 2012).

1.8 ORGANIZATION OF THESIS

Chapter 1 is an overview of the establishment of research foundation. It includes the

problem statement, significance of study and statement of the dependent and independent
variables of the research topic.

Chapter 2 discusses the study of the research questions and other secondary knowledge
sources. Also described are dependent and independent variables and secondary data are
used. This gives the basis for establishing a theoretical framework for further inquiries
and testing of hypotheses.

The analysis of research methodology is presented in chapter 3. The primary approach is

the questionnaire approach, explaining the study in terms of research design, data
collection techniques, sample design, etc. The sample design involves the process,
procedure and action to select an appropriate sample for determining the characteristics
of the entire population. In addition, the reliability test for study is carried out using the
Social Sciences Statistics Software (SPSS) framework.

Chapter 4 will be the results of the research conducted among the subjects we have
identify. All data will be analysed and interpret in this section of the study.

Chapter 5 is the discussion of the findings in Chapter 4. Conclusion of study are stated in
this chapter.
 CHAPTER TWO
LETERATURE REVIEW

2.0 INTRODUCTION

Hospitality industry is a labour-intensive industry. It also among the highest turnover

industry besides manufacturing (Sangaran & Jeetesh, 2015). With this concern, it is very
important for the hospitality industry to reduce the turnover cost of labour, so that, they
can become more efficient and cost effective. In an economic point of view, lower
turnover rate reflects towards the efficiency of the company and how management treat
their employees. To get good employee is also challenging if the management did not
know how to sustain them. Normally, in hotel industry, the wages for their employees is
not very high because it is also a high-operating-cost industry. Due to this matter, job
loyalty in hospitality industry is very low generally (Rishipal, 2019). People who works
in this industry will always change their job place and most of the time, they just walk-off
without notice. Hence, it will certainly give pressure to the hoteliers and hotel owners on
their operation as this will affect their reputation as well. Before we take a look at the
industry level on this concern, we should look into what causes the low job loyalty among
workers in hotels.

There are many researchers that has investigate on job satisfaction of workers in
hospitality industry, however, not many relates job satisfaction with job loyalty. Hence, it
is believed that all factors that caused job satisfaction will also influence workers to stay
loyal to the company they serve (Waqas et al., 2014). Therefore, the purpose of this study
is to assess factors that affecting job loyalty in the hotel industry and this study is
focusing on the workers in YTL Hotels in Malaysia. From all the researches that has been
done, it is identified that effective career development path, good rewards and
recognition, positive working conditions and healthy relationship with supervisors have
influence in job satisfaction that will be a mediating factor towards job loyalty.
2.1. YTL HOTELS IN MALAYSIA: AN OVERVIEW

YTL Hotels is the hospitality arm of the largest conglomerate company in Malaysia, YTL
Corporation Berhad. YTL Hotels are owned by YTL Hospitality REIT, which is an
investment company that acquire and manage luxury hotel brands such as The Ritz
Carlton Kuala Lumpur, JW Marriott Kuala Lumpur, The Majestic Hotel Kuala Lumpur
and many other hotels and resorts. YTL Hotels in Malaysia currently have almost 5000
employees from the top to bottom level. YTL Hotels have 12 properties in Malaysia
which includes luxury city hotels and resorts with different portfolios of target market.

For a company as big as YTL Hotels, employee turnover has been one of their
challenges which resort them to employ a lot of part timers instead of full-time
employees. The downside of this is that hotel operation has lower efficiency rate because
employee could not have enough training and learn the standards set by the company in
time. Plus, the uncertainty of the part time employee to work on the next day also
becomes an issue and will then burden the full-time employees which then leads to job
dissatisfaction.
2.2. JOB LOYALTY

Loyalty is honesty, commitment to one's religion or position of an individual in an

organisation. Organisational loyalty is the loyalty, engagement and partnership between
its stakeholders, such as clients, workers, investment firms and society towards the
organisation itself (Rishipal & Manish, 2013). On the other hand, employee loyalty
means the "responsiveness or dedication of an employee to an organisation (Encyclopedia
Britannica, 2019). Loyalty for employees is a mechanism that contributes full time,
resources, information, experience and efforts to increase the performance of the
company, efficiency and productivity directly and indirectly. Loyal employees can be a
tremendous asset for an established business and there is a clear correlation between
employee loyalty and the growth and productivity of a business. Employee loyalty is
transparent to customers and without good loyal employee, it is almost impossible to
produce loyal customers (Rishipal, 2019).

Loyal staff are committed and passionate to delivering good services. Best quality
goods and services retain and produce loyal customers, and this leads greatly to
operational productivity and productive organisation (Rishipal,2019). Hence, it is crucial
for an organisation to have loyal employees if they want to be competitive in their
industry because employees can be their corporative advantage. According to Yee et al.
(2010) empirical study, it is also proven that employee’s loyalty gave positive impact
towards the organisational performance. Employee loyalty is motivated by fairness in the
workplace (including equal pay), employees' attention and concern, satisfaction with
everyday activity, overall credibility of the organization, trust in employees, available
working or job resources, as well as positive job development and achievement (Ong et
al., 2014).
2.3. CAREER DEVELOPMENT PATH

The human factor is directly related to quality of service, customer retention and
engagement, economic advantages and organizational success. Consumers today are more
knowledgeable and given more choices in the competitive hospitality world. Particularly,
critical for hospitality companies to be served by suitably inspired, well-trained workers
who can deliver on the service commitments because they need to provide to the
changing needs and aspirations of current and potential customers. Having said that, the
hospitality industry is also related to derogatory stereotypes that include low wage
mineral workers, unsocial work hours, seasonal workers and minimal career prospects
(Chung & D’Annunzio-Green, 2018).

This negative perception along with comparatively high workforce turnover suggests
hospitality businesses could be faced with greater difficulties in attracting, hiring and
maintaining high-level staff than other industries. Deery (2008) says that changes in the
efficiency and quantities of employees in hospitality are focused mainly on corporate
strategies and policies to promote good business perceptions as a supplier and an
employer. A talent development approach is also important in order to improve the
recruiting, engagement and involvement of employees.

According to the career development theory by Donald E. Super, people vary in their
skills, personalities, needs, values, preferences, qualities and concepts individuals are
qualified for a number of occupations because of these features. A combination of skills
and personality features is necessary in any occupation. The scenario in which people still
live and therefore change their self-concepts with time and experience. This transition
cycle can be summarized in a series of phases of life defined as a development, discovery,
formation, maintenance and decline sequence.
2.4. REWARDS & RECOGNITION

Appraisal is one of the key elements for achieving employee and organizational outcomes
in the organizational performance management framework (Gozukara et al., 2017; Ismail
& Gali, 2016). In particular, staff satisfaction is crucial for achieving multiple cognitive
and attitudinal results, including the essential motivation of workers, innovative
behaviour, career growth, engagement and loyalty and low employee turnover (Memon et
al., 2019). Therefore, the satisfaction of workers with performance evaluation is
necessary to make the most of talented people.

In the sense of persistent uncertainty regarding job tasks and the immediate needs and
requirements of hotel guests, the job stress or high pressure is well known in the
hospitality industry. The interdependence consequences of employee’s actions and the
management of healthy working relationships provide another cause of tension for
workers to understand. When depression is not handled correctly, it can lead to a high
turnover and a rise in the workers taking medical leave (Chia & Chu, 2017). According to
Hemp (2008), most workers become stressed with their work when they were not given
enough controls in their daily tasks which makes it more difficult in decision making. If
workers are motivated and driven, they feel proud of their work and are motivated that
they connect with others and are also more able to provide clients with improved service.
These both have demonstrated that social satisfaction can help improve workers'
awareness of their professions (Kong et al., 2016).

Mental and emotional empowerment strengthens workers' assumptions about the

value of their careers, the capacity to execute their duties, their sense of personal-
determination and the effect on their work performance. Research showed that self-
efficiency and employee’s happiness has a significant contribution from empowerment
(Kong et al., 2016). It is important to research the effect on how empowerment can create
job satisfaction of workers because organisations can adopt strategies which build a more
participatory atmosphere in which the employees can experience a more fulfilling job
(Garcia et al, 2019).

2.5. WORKING CONDITIONS

One of the factors affecting employee decision to remain with the company is the
working environment (Zeytinoglu & Denton, 2005). The workforce appears to have a
positive or negative impact on workers according Ollukkaran and Gunaseelan (2012),
which is synonymous with participation, dedication and desire to remain with an
organization. McCoy and Evans (2005) said that the elements of the workplace must be
right so that workers are not overwhelmed in their jobs.

It is clear that there are different career views to describe this lifetime cycle. First, a
protectionist perspective believes that people push their jobs and set targets for their life,
and secondly, a job with no obstacles. That looks like a individual has many potential
career routes and several cross organizational boundaries. Portfolio career means that
careers are built and self-managed around a collection of skills and interests. The next
vision of career is described as a true career and this view poses a high degree of personal
insight and uses it to follow a "true" career (Mathis & Jackson, 2011). Such diverse
viewpoints emphasize the individual's role in the preparation and management of career
growth. This does not mean that companies are not interested in the growth of
employment.

Organizations play a significant role in the advancement of employment. The

organization paying attention to career development planning offers an important
opportunity for the properly trained, competent and talented employees to gain high
productivity; hence, the HR manager who is aware of that is likely to take his
organisation. Career planning is a well-planned career development program, including
talent management, performance evaluation, development activities, transfer and
promotion opportunities and planning and succession. The organizations adopt the above
to convey opportunities and support preparation to their employees: job seminars, a
newsletter and career counselling. There are career sections for some organizations on
their sites. Such sections include lists for current workers who wish to change jobs. The
web site of an organization is a link to the outside world and a link to the development of
existing employees. The following sites can be used to evaluate, inform and teach careers.
Organizations should take note of the importance and recruitment of occupations for the
advancement of their sites. One key system that organizations use to lead HR managers to
develop careers for employees is work paths or maps. The career path represents
employee motions over a period of time through opportunities. Although career paths are
seen as upward, there are greater prospects in horizontal directions too. This is usually
done and shared with each employee. Together with the staff, the work of organizations
has helped to retain key employees (Mathis & Jackson, 2011).

From the debate, it is clear that the professional advancement of the company and the
individual employee is a shared responsibility. The plan and management aspects are
clarified in this joint action. The career management includes a continuous process in
which the individual workers prepare, implement and monitor their career plans alone or
in conjunction with their career systems. In the management process, the company offers
the process and requirements to meet the job goals of each employee which needs the
employee's correct skills. In short, professional management is the answer of the
organization to the individual workers and to prepare the workers for their careers and
organizational goals (Zeidan & Itani, 2020).
2.6. RELATIONSHIP WITH SUPERVISORS

Psychological disorders potentially can influence the individual's involvement in roles or

activities. Mindfulness, health and accessibility may involve psychological conditions.
The work values associated to the standard or individual idealism are psychological
significance. Individuals with a person's sense of meaning are motivated to work and
organize themselves fully. Individual convictions have demonstrated psychological
stability to function without or without adverse effects. Psychological protection must
include people in the work and in the business. The availability to physical, emotional and
cognitive resources would encourage people to take on the role they play. The
psychological condition will impact the involvement of people in the workplace based on
earlier research (Ariani, 2015).

The relationships with colleagues, and direct leadership or supervisors influence

psychological conditions which include sense of authority, safety, and availability.
Leaders are generally seen as an agent of an organization which is competent and
acceptable, and its employees are personified with the leadership of the company. The
interaction between the manager and the organization's workers, while the corporation is
the home of the partnership, allows for psychological connections. Supervisory
relationships also play a crucial role in the project allocation, reward distribution and staff
development (Ariani, 2015).
2.7. CAREER DEVELOPMENT PATH AND JOB LOYALTY

The key issue with the appropriate appraisal program is how an individual respond to a
performance review. This evaluates the overall satisfaction of workers with the
company's performance appraisal program and relates to the amount that performance
evaluations considered by individuals (workers) reflect behaviour that brings value to
their company (Memon et al., 2019). A proper performance assessment program allows
high performers to retain their performance standards and allows weak performers to
improve and ultimately ensure business continuity and growth. The understanding of
equality by workers is important for the assessment of results to increase employee
satisfaction with the appraisal program. An atmosphere of trust between employees and
their organisations, where employees agreed that during the appraisal, they are viewed
equally will produce good perceptions towards the organisation (Memon et al., 2019).
Hence, it will then promote job loyalty among the employee.

There is also one research that have a non-significant correlation between

performance appraisal and decision to remain in the company which was done by Johari
et al. (2012). Therefore, in this study we would like to see if that happens among workers
in YTL Hotels as well because according to Social Exchange Theory (Blau, 1964) claim
that workers are expected to maintain an equal relationship with their employer in a
shared partnership. In a corporate setting, exchanges are fruitful as an organisation
handles its staff efficiently, is responsible with the well-being of workers and encourages
a sense of honesty and justice (Eisenberger et al., 1990). Employees are also obliged to
return the favour legally or ethically, towards employer and their business functions
(Cheung et al., 2018). For example, a conscientious boss lets their workers feel that they
are respected and thus allows them to reciprocate good behavioural and sociological
performance (Aryee et al., 2002; Cheung et al., 2018; Gould-Williams & Davies, 2005).
Hence, with proper appraisal system, it can create a good long partnership between
employees and employer.

H10: There is no relationship between appraisal system and job satisfaction

H11: there is a relationship between appraisal system and job satisfaction

2.8. REWARDS AND RECOGNITION AND JOB SATISFACTION

Employees look for specific guidance, assistance and empowerment from their
supervisors in particular activities. Hotel managers may employ young people and
improve employee satisfaction through career development and coaching. Hotel managers
may provide input on the success of their employees and lead their career development by
frequent communication with their workers. Strong mentoring and assisting staff strive to
develop their performance with optimum productivity and happiness (Kong et al., 2015).

Empowerment involves the ability of workers to make decision on their own during
executing their daily tasks (Waqas et al., 2014). Psychological empowerment also
provides workers with rewards. This helps workers to do excellent work and to take
charge of their own productivity. It aims to find methods and mechanisms of carrying out
work and improves their promotion and job satisfaction ability. This leads to better
personal development process (Tetik, 2016). The research conducted by Tetik (2016)
found that there is a correlation between employee empowerment with job satisfaction
and this will also influence employee to remain in the same company. Since this study is
conducted in Turkey, we would like to know if same relationship will be found in
Malaysia context, particularly in YTL Hotels.

H20: There is no relationship between rewards and recognition and job satisfaction

H21: there is a relationship between rewards and recognition and job satisfaction
2.9. WORKING CONDITIONS AND JOB SATISFACTION

Negative emotions about work are considered a work pressure when the workplace and
working environment are ambiguous (Ong et al.,2014). According to Scott et al. (2012),
there are six reasons of employee’s satisfaction and the most significance are the working
condition, work related stress and managerial support. Hence, all mentioned reasons are
related to working environment. Therefore, in the study, it shows there are positive
relation between working environment and lower employee retention. This then can be
concluded that it has effect towards job satisfaction in an organisation.

Either of the two variables are known as hygiene which may not be taken into account
for the study, but the working conditions gives people the enjoyment of enhancing
efficiency. Waqas et.al (2014) also stressed that the critical element in the financial
sector's work-place environment. The working atmosphere should be created positively
by the managers, in order to have a healthy working environment. A healthy working
environment will enhance job satisfaction among employees and promote job loyalty
(Frempong et al., 2018).

H30: There is no relationship between working conditions and job satisfaction

H31: there is a relationship between working conditions and job satisfaction

2.10. WORKING CONDITIONS AND JOB SATISFACTION

Governmental organisations are debating workplace benefits worldwide. Most people

spend 50 per cent of their lives indoors, which have a major effect on their mental
condition, activities, skills and performance (Sundstrom 1994). Better results are
presumed to be the result of better working conditions and increased productivity. The
workers were enhanced by a better physical office atmosphere and eventually increased
their efficiency. Specific studies on various offices and workplaces have shown that the
lack of productivity in workers is a factor, such as frustration, noisy workplace and the
physical atmosphere.

If higher productivity is correlated with non-monetary working conditions, employers

should pay more for workers to improve productivity so as not to lose their workers. In
fact, as long as more than one employer offers a good job offers for a specific category of
employee, employers may be forced to charge their wages – perhaps as high as the
worker's marginal value. It's an empirical question that there is such a positive wage gap.
If found, this would mean lower value of actual productivity differences, bearing in mind
that the observations also reflect some compensating wage difference.
2.11. JOB SATISFACTION AS MEDIATING VARIABLE
2.11.1. JOB SATISFACTION AND JOB LOYALTY
According to Oneybu & Omotayo (2017), wages, promotions, incentive
schemes, employment security, a healthy work setting, co-worker support, and
recognition are important factors which have had a positive impact on hotel
employee satisfaction in Nigeria. Studies have shown that many variables,
including incentives and appreciation, work satisfaction, good relations with
peers and superiors, performance evaluation and organizational factors, have
an significant impact on staff loyalty in the hotel sector and that the definition
and comprehension of loyalty factors are necessary to improve an employee
and an organisation (Rishipal, 2019).

Empowerment included employees' engagement in decision-making in order

to promote employee creativity and independently take decisions. The
empowerment of employees is a strategy, as described by Bohlander and Snell
(2013), to include employees is a part of the technique of involvement.
Empowerment helps employees to come as innovators and administrators in
their own jobs and involves them in their work to improve flexibility and self-
reliant decision-making which also a form of recognition in workplace.

Many studies indicate that empowerment has an effect on employee loyalty.

Fulford and Enz showed that empowerment perceived has an effect on loyalty
(Rashdi et al, 2009). Osborne (2002) also accepted that empowerment
influences the commitment and desire of the workers to leave the company.
When workers feel motivated, they want to retain influence and authority over
others or jobs (Osborne, 2002). Fulford and Enz found a 35% difference in
workplace satisfaction in a global indicator of workplace control (Rashdi, et
al, 2009).

Rishipal (2019) also reported researchers has found that staff have been more
committed to the company when it comes to job growth. There is a clear
correlation between profit and customer loyalty, employee loyalty and
consumer loyalty, and employee satisfaction and customer satisfaction. In
certain studies, loyalty and commitment of consumers is greatly influenced by
the measurements linked with the employees. Customer retention,
commitment and productivity of the company agency was shown to be a
motivation to the employees to remain working in the organisation.
Henceforward, we can observe if the same case applied to the YTL Hotels’
workers when this study progressed.
2.12. UNDERPINNING THEORY
2.12.1. RESEARCH BASED THEORY

Findings from this study will extend the existing expertise in different fields.
Firstly, this research was the first to evaluate how the workers view their
employment simultaneously with solid theoretical foundations, taking into
account the changes needs of today’s challenges economically. This research
was also an extension to determine the independent variables using empirical
study. The first study was the one that took into account the structure of
appraisal system particularly in Malaysian context.

Second, in this analysis the theoretical model will be determine

whether it will adequately match the data which may provide the basis for
similar studies by other researchers in other contexts. Third, while this study is
to be carried out concerning employee conduct, this is the only known study
which investigates the mediating impacts of appraisal system, employee
empowerment, healthy working environment and job satisfaction towards job
loyalty. Hence, theory of Social Cognitive Career Theory (SCCT) (Lent et al.,
1994) is used to determine the relationship between appraisal system and
working environment with job satisfaction and job loyalty, Kanter’s Theory
(Kanter, 1993) to measure the effectiveness of job empowerment with
jobsatisfaction and job loyalty. Lastly, to investigate to what extend all the
independent variables above can influence job satisfaction and job loyalty by
referring to the Maslow’s Hierarchy of Needs (Maslow, 1943) as the
measuring tools for the hypotheses.
 Moreover, a value-added contribution to established theories is a
decision which simultaneously explores the mediating roles of appraisal
system, employee empowerment, healthy working environment and job
satisfaction towards job loyalty. Benefits from this analysis include results
from other studies on the essential role of motivation to affect other variables
such as work commitment and job satisfaction.

2.13. RESEARCH FRAMEWORK

Career
Development
Path

Rewards and
recognition
Job Satisfaction Job Loyalty
Working
conditions

Relationship with
supervisors

Figure 1 Conceptual Framework

2.14. CHAPTER SUMMARY

In conclusion, we are able to justify that the variables that was mentioned above can be
used as tools to measure if job loyalty among YTL Hotels’ workers are interrelated with
the factors that have been identified. We will also investigate if job satisfaction has a
mediating effect towards job loyalty among YTL Hotels’ workers as per structured in
 Figure 1. Hopefully, by conducting this study, we are able to identify the relationship
between all variables in Malaysian context, as most research are based on other countries.
It is also a contributing factor towards the society, so that, they are able to understand and
perceive what are the expectations of future workforce particularly in hospitality industry.

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 INTRODUCTION

The aim of this study is to develop a comprehensive description on the factors affecting
job loyalty among YTL Hotels’ workers in Malaysia. The methodology of this study is
quantitative method. The quantitative data will provide the analytical result of the
relationships between the independent variables that has been identified above against
the dependent variable. Besides that, the quantitative data will also measure if the
mediating factor for job loyalty have a positive or negative impact on the relationship.

3.2 RESEARCH DESIGN

This study has adopted a descriptive-correlational research whereby a survey method is

conducted. Correlational research involves collecting data to determine whether a
relationship exist between two or more quantifiable variables. It has provided the
numerical estimate of how closely or distantly relation between two or more variables.
Higher correlation value indicates that the relationship is closer and vice versa. This study
has looked into the factors that affects job loyalty. The independent variables involved are
career development path, rewards and recognition, working conditions and relationship
with supervisors. This study also measured the relationship between mediating variable
between job satisfaction and job loyalty.
3.3 POPULATION AND SAMPLE

The target population of this study is YTL Hotels’ workers in Malaysia. There are 12
hotels operated by YTL in Malaysia and there are five hotels centred in Kuala Lumpur.
The five hotels are The Ritz Carlton Kuala Lumpur, JW Marriott Kuala Lumpur, The
Majestic Hotel Kuala Lumpur, The Stripes Hotel Kuala Lumpur and AC Hotel Kuala
Lumpur. In total, YTL Hotels in Malaysia have about 5000 employees. According to
Singh et al. (2015), for a population size of 5000, the minimum sample required is around
357 employees. A probability sampling will be used. The sample of employees for this
study will be selected through stratified random sampling by each property in Klang
Valley. Stratified sampling is a method used to achieve a more representative degree and
to reduce the possible error in the sampling. This makes it possible to use the stratified
sample approach so that a sufficient number of subjects from every property can be
obtained.

3.4 INSTRUMENTS AND MEASUREMENTS

The type of instrument to be used in this study is self-administered questionnaires. These

questionnaires is designed using Likert scale; hence, the question is in accordance to the
variables that was measured. Likert scale is a good tool for this study as it can measure
the strength of an attitude or an opinion which has reflected well to describe the
relationships between the dependent and independent variables. There are four types of
measurement scales which are nominal, ordinal, Likert and ratio, but this study had uses
 three types of measurement scale in the questionnaire which are nominal, ordinal and
Likert.

For nominal and ordinal scale, the questionnaire has collected demographics attributes
from each subject. The attributes are gender, age, salary scale and years of work
experience. Likert scale measures all the related factors of the independent variables and
dependent variables to see the strength of the relationships.

3.5 VALIDITY AND RELIABILITY

For reliability of this study, it is suggested to conduct a Kuder-Richardson or coefficient

alpha test (Cronbach Alpha) once the test has been conducted for the study. These are the
simple way for binary-response elements to facilitate the reliability calculations.

For validity purpose, the help from Human Resource Department from each hotel are
needed to help in distributing the information of the employees in the hotels that involves
in the operation side of the hotels.

3.6 PRE AND PILOT TESTS

A pre-test or pilot test has yet to be conducted for this study as starting from March 20 th,
2020, all YTL hotels in Malaysia has closed down due to COVID 19 pandemic
occurrence and Malaysian Government implementing the Movement Controlled Order
(MCO) nationwide. All hotels will be closed until end of May, and there are only three
YTL Hotels operating at this time which are AC Hotel Penang, AC Hotel Kuantan and
The Ritz Carlton Kuala Lumpur.

Nevertheless, the pre-test is planned to be conducted at JW Marriott Hotel as

preliminary measures to see the response latency of the workers there. It will also help in
estimating the time respondent needs to complete the survey. Thus, with the pre-test,
 observation can be made on the response pattern and the reliability of response towards
this study. A proper estimation on how long the study should be conducted can be
determined by the pre-test in order to assist smoothness of the research later on and to
anticipate future challenges for the study.

3.7 DATA COLLECTION PROCEDURES

For data collection, this research will approach each YTL Hotels that have been identified
via Human Resource Department in order to gain information of their employees.
Permission from the top management of each hotels may be needed to collect the data.
Therefore, a letter of permission request should be collected from the University in order
to proceed for data collection. Upon approval, list of employee’s names with their email
address and telephone number are required in order to give out the questionnaires.
Questionnaire will be done digitally and in hard copy, however, soft copy is preferred as
it is more convenient, paperless and data can be easily analysed as they are already
digitised.

3.8 TEST OF SURVEY BIAS

In research there are four type of bias, for instance, sampling bias, nonresponse bias,
response bias, and question order bias. However, these biases can be minimized by
reducing the amount of questions and make the question as engaging as possible. Besides
that, randomizing the questions and grouping the questions according to the topic can
help minimizing the biasness of the respondents.
3.9 DATA ANALYSIS

The data will be collected by using the Social Science Computerized Data Software
System (SPSS) program from questionnaires that will be given to around 800 potential
subjects. It is expected around 400 subjects (50 % of response probability) will return the
questionnaire for this study. The data will be used to identify and deduce the factor that
affects job loyalty among workers of YTL Hotels.

In addition, a detailed overview of the sample and the measures with detailed
graphical analysis is used as it can form the basis of virtually any quantitative analysis of
data (Trochim, 2006). It will also give a concise statistic in the description of the
fundamental features of the data in a report. Descriptive statistics are a collection of brief
concise coefficients that can either describe the entire sample or a population. a particular
data set can be summed up. The metrics is used to define the data collection for
calculating uncertainty and core trend.

Scale measurement refers to the basis of every systematic assessment framework and
numeral assignment of an object. Four forms of dimensional measurement are nominal,
ordinal, interval and ratio. The Nominal Scale is a metric that does not quantify objects in
any way and does not have a ranking of gender or faith, whereas the ordinal scale has
numbers to identify an object and consists of a ranking. Otherwise, interval scale is
 equivalent for all items representing the same variations while the ratio scale is the
measure with a true zero level. Researchers have shown that the reliability test is a test
showing the measurements of coherence of a given definition through an instrument
assessment (Zikmund et al., 2010). According to Sekaran and Bougie (2010), consistency
describes the degree to which the computations of a principle hang together and can be
tested by a temporary consistency check. The test of reliability indicates that the elements
in the questionnaire are interrelated and indicates the average relationship between the
four independent variables.

For Likert scale questionnaire, reliability test, Pearson correlation coefficient and
multiple regressions will be used to analyse the data obtained from the study later on. To
analyse the validity of statements to the surveys of each element, the reliability test will
be used. The relationship between the three independent variables, mediating variable and
job loyalty will be tested using the Pearson correlation coefficient. In addition, the
relationship between the independent variables, mediating variable and dependent
variable is investigated through a multifaceted regression analysis. Finally, the figures are
displayed by charts, pie chart and bar chart with better information for readers.

3.10 CHAPTER SUMMARY

Within this chapter, the research addresses the general concept of the methodology of
research. In addition, the technique has been briefly defined in the areas of research
design, data collection methods, sample design, design of construction operations,
measurement scales and data analysis methods. This will be circulated to the front and
back of house workers in the hotel that has been identified. The questionnaire is also
distributed according to the specified sample size.
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