Roman Catholic Bishop of Malolos,Inc.

Sto. Rosario Sapang Palay College, Inc.

Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

The literature review is an evaluation of a body of research that addresses the research

question (Rowe, 2014). A literature review also serves in providing a new understand for

researchers and scholars on how a study corresponds to existing research, while adding

significant contributions to the existing literature (Shepard, 2013). My intent was to review

the literature encompassing factors that may relate to employee turnover rates in the

hospitality industry. The review of the academic and professional literature includes a

discussion of theories, the factors that affect the turnover rate, and perceived strategies and

policies that leaders can implement to help reduce the high turnover rate in the hospitality

industry. Literature reviews are helpful in (a) adding support to the topic, (b) identifying the

literature that contributed to the research, (c) building understanding of the conceptual

framework and literature, (d) establishing a bibliography of sources, and (e) analyzing results

(Rowe, 2014). The literature search involved identifying studies potentially relevant to the

research question using predetermined keywords, as recommended by Shepard (2013). The

objective was to determine if the factors of compensation, employee engagement, employee

motivation, job satisfaction, and work environment affect the turnover rate of hospitality

employees.

This section contains literature and studies on the capacity and employee retention.

These materials were gathered from online sources and other unpublished materials that

provided the researchers with an exhaustive review of the topic and the essential background

knowledge to pursue this study.

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

Related literature

Local literature

At the beginning of 2020, COVID-19, a novel coronavirus had vigorously spread around the

world and was declared as ‘Pandemic’ on March 11th 2020 by World Health Organization (WHO).

The virus first emerged in China and is now considered as one of the major global health threats

(Wang et al., 2020). By 30th January, 2020, the virus had spread to 147 countries, killed more than

7800, and affected hundreds of thousands of people in a short time (Gostin, et al., 2020). The virus

has mortality rate of 1-2% with other genetic variants of the virus leading to 4-6% mortality in areas

like New York, Spain and Northern Italy (Szabo, 2020). The deadly virus has strongly influenced the

people by increasing fear, frustration, stress and anxiety. It is documented that pandemics have huge

impact, for example, the Avian and pandemic Influenza in 2004, impacted the United States,

Australia and the world with its disastrous impact (Taylor, et al., 2008). This Covid-19 pandemic has

created a crisis in all aspects of our lives.

Past studies suggest that crisis affect individual work and psychological wellbeing to a large extent

(Wright & Hobfull, 2004; Griffin & Clarke, 2011; Bakker & Demerouti, 2018;). Crisis can be defined

as an emotionally stressful and disturbing event in person’s life (Ünal-Karagüven, 2009). The

outbreak of COVID-19 in the current time has led to a crisis situation and made a major switch in the

regular working conditions worldwide correlated with high public uncertainty (Kanupriya, 2020). In

addition to the stress associated with Covid-19 disease, media speculation have caused this

psychological disturbance more severe. The current situation with lockdown and work from home

(WFH) has become stressful for many of us. Past studies have found that high work load with

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

unrealistic deadlines, work-family imbalance and job insecurity are the main stressors for employees

(Krantz et al., 2005; Sullivan & Mainiero, 2008; Sahni, 2016).

Stress is known to have a negative influence on employees performance, productivity and overall

satisfaction. Stress may make people more susceptible to the vulnerable COVID-19 virus infection

(Anderson, 2020). This needs to be tackled as an urgent occupational health issue. Stress is a complex

problem and misunderstood by many people (Defrank & Ivancevich 1998). The term ‘stress’ has

generally a negative connotation in the form of threat and lack of resources. It was first identified by

Hans Selye as having both negative (distress) and positive (eustress) aspect to it (Selye, 1976). He

described stress as “the non- specific response of the body to any demand made upon it” (p. 137).

However, prolonged stress has been associated with many reasons of death like, heart attack, cancer

suicide etc. (Schneiderman et al., 2005; Jha et al., 2019). One of the popular theory called stress

appraisal theory (Lazarus & Folkman, 1984) suggested that our behavior and emotions arise from our

appraisal of events. In the case of stress, the situation (the stressor) is not the only factor that

determines our response, our cognitive appraisal to the stressor plays an unconscious role in our

emotional response. The prolonged stress generally results in lower performance levels, change in

attitude and work withdrawals which often leads to faulty decisions and bad work relationships

(Hallowell, 2005). Moreover, the prolonged stress can even cause many psychosomatic diseases

(Frese, 1985; Frone, 2000; Bliese et al., 2017).

Nonetheless, any kind of stress needs to be handled carefully and by the individual and their

organizations by providing proper and appropriate support (Michie, 2002). Many stress management

intervention like counselling can be helpful in reducing the stress and increasing the occupational

health of employees (Richardson, & Rothstein, 2008). Another technique found effective in various

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

experiments and research finding is ‘mindfulness’ (Chiesa & Serretti, 2009). Mindfulness is a state of

mind and a mental training that allows the person to be highly aware about the present without getting

emotionally involved and reacting. It can be achieved through meditation which leads to awareness

and acceptance. Almost three decades of research on stress has been focused on avoidance,

prevention and how to reduce the frequency of stressful events (Folkman & Lazarus, 1984;

Somerfield & mccrae, 2000) however, the focus is now shifting on the influence of mindset on

handling stress (Jamieson et al., 2018). A recent study explored the way we can use our mindset to

understand and modify our general understanding of stress. The negativity associated with stress may

lead people to avoid or ignore it in the fear of not facing it. The mindset of dealing with stress can be

altered by reappraising it in a positive way called stress optimisation (Crum et al., 2020).

The underpinning theory used in the present study is Conservation of resource theory (COR) given by

Hobfoll (1989). The theory explains that people feel stressed when their existing valuable resources

are under threat and the new additional resources seem to be unreachable. It could help in

understanding how the stressful event like COVID-19 pandemic influences employees and their work

and family. Under COR, all work-related conditions like objects, conditions, personal characteristics

are called resources. Moreover, the theory categorises 74 resources into different categories, for

example, primary resources (like food, shelter or clothing), secondary resources (like social support,

belongingness the group, hope and optimism) and tertiary resources (like social status and luxurious

life style) (Hobfoll & Wells, 1998). For the present study, the resource list consisted of resources like

social support, time, hope and optimism as these resources are threatened by the current crisis leading

to stress.

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

The Conservation of resource theory has received a wide acceptance across countries (Zamani, et al.,

2006; Halbesleben et al., 2014; Hobfol et al., 2016; Lin et al., 2019). Studies have tested the COR

theory and found that providing resources like training to enhance the skills of employees (in the form

of resource gain) actually result in lower stress and heightened self-efficacy (Chen et al., 2009). The

COR theory has been applied to promote the public health by proposing a framework to prevent

resource loss and maintain the gain by engaging in healthy behavior (Hobfoll & Schumm, 2009;

diclemente, et al., 2009). Similarly, Brummelhuis & Bakker (2012) applied the COR theory to

examine the work-home conflict of resources and found that personal resources like time and energy

can be utilized to improve the overall outcome.

Foreign literature

In recent years, the global travel and tourism market has been expanding rapidly. The

worldwide number of arrivals of foreign visitors rose from about 541 million in 1995 to 1161

million in 2014[1]. The ever-greater figures raise immense challenges for disease

preparedness and prevention for the entire global community. The rising uncertainty of

regular international travel opens the door for local infectious disease outbreaks to become

global pandemics. The wellbeing and well-being of travelers needs adequate consultation and

treatment in their own right, although it is necessary to discuss the public health aspects of

their illness in the case of infectious diseases of significant public health significance, since

patients are also disease carriers who facilitate the transmission of infectious diseases on a

potentially global scale. The International Health Regulations (IHR) (2005) represent one of

the World Health Organization's only legally binding instruments (WHO). The aim and

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

scope of the IHR (2005) are to "prevent, protect, control and provide public health responses

to the international spread of disease in ways that are commensurate with and restricted to

public health risks and prevent unnecessary interference with international trafficking and

trade"[2]. The air travel industry's role in monitoring and thereby containing the future

international dissemination of infectious diseases is illustrated in the majority of existing

travel medicine studies and current recommendations for international health authorities. The

WHO Guideline on International Travel and Health, for example, highlights the role of

airlines and shipping companies in limiting the spread of infectious diseases across borders,

along with that of tour operators and travel agents [3]. In the same way, the recommendations

of the Centres for Disease Control and Prevention (CDC) concentrate on the airline and

cruise industries [4]. The position of the other main tourism industry, the hotel market, has

been less well defined and debated. This case study would use the example of the

international outbreak of Extreme Acute Respiratory Syndrome (SARS) in 2003 at the

Metropole Hotel in Hong Kong. The quarantine mandated by the Metropark Hotel during

swine flu 2009 in Hong Kong and the impact of the government. SARS was caused by the

SARS-associated coronavirus, with direct mucous membrane interaction with infectious

respiratory droplets being the major mode of transmission [5, 6]. It had a simple reproductive

number of roughly 3 and the distribution was primarily to people in health care and

household settings who had close contact. In November 2002, the first cases were identified

in China's Guangdong province, and a variety of natural reservoirs were identified, including

civet cats and bats. The time of incubation varied from 3 to 10 days [7]. With deaths

stemming from pneumonia and associated respiratory failure, the average case fatality ratio

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

was 9.6 percent nationally. At that time, the travel industry contributed to the pace of the

spread of this unknown disease, particularly within the Metropole Hotel as it was the first

place to spread the virus globally [8]. In 26 nations, SARS subsequently caused 774 deaths,

with the disease spreading to five continents [7]. This case shows beautifully how a local

epidemic will turn quickly into a global pandemic.

At Shangri-La Hotels and Resorts, before transporting everything inside, temperature

screening and full disinfection processes would be observed. Guests will be asked to fill out

health and travel declaration forms for transparency and contact monitoring until they are

able to sign in. Face masks and other PPE would be widely available for guest use as well.

Before and during use, hotel-owned vehicles used by visitors, including shuttles and

limousines, may also be disinfected. Cleaning of hotel linens will be carried out using special

soap and detergent by highly qualified workers. If visitors choose to get their washing done,

clothes are kept in separate packaging to discourage any infection, while fitness and

wellbeing areas such as swimming pools, hot baths, saunas and steam rooms are temporarily

closed.

Local Studies

Previous researchers have confirmed that there is a healthy workforce Employee

turnover employed in the hotel industry (2011) (Davidson & Wang; Mohsin, Lengler &

Kumar, 2011)

2013) by Pearlman & Schaffer. This is counterproductive to the maintenance

expenses of hotels and many potential workers will not see the best option to work in hotels.

High costs of staff turnover that could the strategic burden of hampering operational success

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

(resulting from the substitution phase of Human Capital Employees), inconsistent quality of

operation (the efficiency of Various workers can vary), and the resulting loss of Loyalty to

clients (Kuria, Alice & Wanderi, 2012; Yam & Raybould, 2011; Mohanty & Mohanty,

2014 ; Wan & Fu, Yang, 2012). The possible cause of high employee turnover in hotels was

stated by some researchers to include long working hours, perceived unequal pay, minimal

development opportunities, and weak working relations between supervisors and

subordinates (AlBattat, Som & Halalat, 2014; Davidson & Wang, 2011; Kuria et al., 2012;

Mohanty & Mohanty, 2014). A healthy workforce has been a major strategic advantage in

today's volatile workplace. These dollars come from the 'bottom line' straight off the'

(Reichheld, 2001; Dibble, 1999;Herman, 1999). Organizations do not have consistent close

relationships with stakeholders without continuity; consumer satisfaction is fragile;

administrators are stressed; confrontation is more likely; productivity is impeded. These

problems make it hard for a company to succeed in the marketplace. Arguably, a healthy

population of skilled, committed staff is the most important and unpredictable commodity.

Longevity gives a strong benefit to a company; deep expertise gives power to the

organisation. Also for an efficient succession planning process, the loss of a qualified

employee is increasingly impossible to substitute with another with equal competence.

Organizations are required to recruit workers with less competence because of a competitive

job market and competition for good people. If this situation repeats itself sufficiently, the

organization's workforce's general skill and capacity will steadily decline, along with the

ability to fulfill consumer demands (Ambrose, 1996). Dissatisfied clients leave, and carry

with them the cash flow and profits of the company.

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

Foreign Studies

Employee engagement is an initiative by a corporation to create a workplace

atmosphere that allows existing workers to continue in the organization. In addition,

preservation of workers applies to procedures and strategies used by organizations to

discourage important employees from quitting their jobs. It includes taking steps to enable

workers to work for the longest amount of time in the company. Similar to Zineldin (2000),

retention was seen as an agreement to proceed on a continuing basis to do business or trade

with a specific firm. Some workforce retention policies are targeted at meeting workers'

diverse desires in order to increase their workplace satisfaction and reduce the considerable

costs of recruiting and educating new employees. For an employer, recruiting experienced

people for the position is necessary. Yet retention is far more important than recruiting. It has

been a key challenge for many organisations today to attract top talent. Managers need to

make a lot of effort to ensure that the attrition of the workforce is still minimal, when they

develop increasing knowledge of which, Meaghan and Nick (2002), employees are vital to

the company because they are not readily repeated by their beliefs to the organization. As far

as business participation is concerned, it has been seen as one of the most relevant markers of

attrition and desire to leave. Employees who were more loyal to their organisations were

found to have less intention of leaving than those who were not. Clarke (2001) has stated that

whether he or she has a successful relationship with the people he or she works around;

workers will stay with their company. However, one of the sources of workforce discontent

that leads to attrition is the lack of opportunity to learn and self-development in the

workplace. Managers today have to take care of the personal emotions of their workers about

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

the levels of employment and satisfaction from their working environments, supervisors and

colleagues, as these are the keys to maintaining employee retention. It is recommended that

organisations have resources for team bonding, where conversation and debate can be carried

out not only within but beyond their working hours (Johns et al 2001).

Retention of workers is a big market issue (Gruman & Saks, 2011). Managers may

resolve these variables to discourage unplanned attrition by demonstrating some of the

variables that influence the plans of an individual to leave an organisation (Das, 2012). The

goal of this qualitative multiple case study was to analyze the techniques that hospitality

managers need to increase the retention of employees. Waight and Madera (2011) related

retention of workers to workplace satisfaction and the work climate, such as improved

accountability standards and demanding assignments. Exploring retention techniques can

increase competitiveness and social responsibility, as well as boost the morale, work

satisfaction and retention of workers of a company (Khaliki, 2014).

Theoretical framework

The thesis of Scientific Management by Frederick W. Taylor (1856-1915) was among

the first to research worker efficiency and how best to improve it. By proposing that

workplace activities be broken down into a series of smaller steps, Taylor encouraged

standardisation and specialisation. He concluded that managers should appoint employees to

a job that best suited their skill, properly train them and supervise them to ensure that they

worked effectively. Taylor, however, forgot the humanity of the individual in finding the best

way to complete any given assignment.

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

The effects of the current SARS COVID-19 would be more pronounced and longer-

lasting, especially in the absence of an immediate infectious disease vaccine also for popular

masses. While some countries have tried to follow the path of herd immunity (such as

Stockholm), a group of scientists have challenged this approach in the absence of evidence to

support such radical action. For the tourism and hospitality industry, this is important

because of the perpetuity demonstrated by the outbreak. The implications will linger for a

longer term and for challenging times ahead, industries that depend on public contacts such

as tourism and hospitality need to embrace. It will be necessary for governments and

marketing firms to perform research to evaluate the impact of the current disaster on the

industry in the future (Min et al., 2011).

Tourism refers to the frequent movement of people to work and residence

destinations, to the activities carried out during their stay in those destinations, and to the

facilities generated and the services given to meet their needs. Three symbols are known as

people traveling for more than 24 hours abroad (Vijaya, 2016).

International tourism has shown continuous growth for the tenth consecutive year,

according to the World Tourism Organization (2020), reporting 1.5 million international

tourists arriving in 2019 and an estimated 1.8 billion international tourist arrivals by 2030,

people are forecast to announce the covid-19 or corona outbreak from Hubei Province,

Wuhan City in Hubei, China. The major destruction of the global economy from the

transmission of the virus, especially to the food retail sector, consumer goods, the provision

of healthcare and the possible reduction of travel and tourism, as the key drivers of most of

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 Roman Catholic Bishop of Malolos,Inc.
Sto. Rosario Sapang Palay College, Inc.
Bgy. Assumption, of San Jose del Monte City, Bulacan – 3024

the world's countries, is observable and serious than many anticipate well-being of all human

keeping space for increased travel and tourism.

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