Professional Documents
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LITERATURE REVIEW
2.1 Introduction
The concept of ethical behaviour of employees has gone through significant changes,
which opened new horizons for different areas of research. One of those areas is the
possibility of testing whether or not individual personality traits support the ethical
employees has made is possible to identify more ethical individual and how identifying
employees to give a detailed background to the research This chapter continues to review
conceptualization of personality traits based on the Big 5 Personality Traits Model that
have been developed by Lewis Goldberg 1993. Then, the overview of hotel industry in
Malaysia were reviewed to describe the benefits of ethical behaviour of employee both
for the employees and organizations. Finally, the conceptual framework of this research
Ethical behaviour has been an explanation behind worry since antiquated time. Ethical
behaviour in business practice has been developed perseveringly. In current time, ethical
behaviour has been looked as noteworthy piece of the business accomplishment. There
are heaps of theoretical and empirical studies which explain the segments and factors
affecting the ethical behaviour of individual in the affiliation and from this time forward
their ethical fundamental initiative, ethical behaviour is afirm since human improvement
had been progressed. India is known as it has rich ethical custom, which envisioned in the
holy messages of the land like Gita, Upnishad and so forward. A lot of theoretical and
empirical studies are open on ethical behaviour by various master authorities. These have
been caused to see the ethical philosophy of business. And today it is seen as an
There are different theories dependent on which most by far of empirical investigations
have been assessed, Cavanagh et al. (1981) have given utilitarian, theory of right and
theory of equity, all of these theories and ways of thinking is extraordinary. Pursue and
Vitell (1986) have given descriptive basic leadership process. According to Gresham,
Ferrel and Mclaves N. (2013), both hierarchical and singular components are drivers of
good lead. Fritzche and Becke, (1984) interface ethical conduct with regularizing theories
of morals ,most by far of the empirical investigations relies upon the Rest model of
ethical choice
Issues of morality and ethics have progressively gotten increasingly significant in
organizations and business settings. Customarily, these issues of ethics and social duty in
that are grounded in philosophical conventions (David and Wim, 2016). In the event that
ethical conduct isn't polished inside the organization, it might have the capacity in
deliver ethical conduct that goes far in excess of what was required can be a key resource
and one that is hard for contenders to mirror (Henry KY and Richard Musebe, 2016).
Individuals may imagine that ethics is something cozy, a secret issue that an individual
and his inner voice share. How I carry on, how I arrive at objectives (as long as they are
lawful and genuine), probably won't appear to be significant, and some may even say that
ethics has nothing to do with the executives. Elwira Lesna, 2012 did referenced in her
examination that business ethics encourages us to understand why this is going on, what
its suggestions may be, and how I may address this circumstance.
College, Ethics is an essential trait which one embraces and pursues as a core value of
fundamental dharma in one's life. It infers moral direct and good behaviour with respect
to a person. Gebeheyu Jalu Negassa, 2015 have clarified unethical activity of businesses
in creating nations is exceptionally connected with financial issue. A few clients are
malpractices can cause enormous harm on the individuals, communities, and public as
well as to the business organization. Thus, doing this research can help to improve and
Survey of existing theories and models confirm that there are plenty of models and
theories accessible on ethical behaviour. Ferrell and Gresham (1985) included individual
and organizational factors as possibility and contended that ethical issue rises up out of
the social, social condition. He related his model to nearness of expert codes, corporate
approach, prize and discipline in his possibility outline. All things considered, theory of
marketing ethics showed that impression of ethical issues and results experienced the
deontological and teleological assessment lead to ethical judgment and afterward goal
The four component of ethical behaviour, Rest (1986) of behavioural procedure in which
each component is vary to each other, in view of four component model, Trevino (1986)
situational factor as directed which sway moral judgment to reach to the behavioural
stage. As an individual factor he included sense of self quality field and locus of control.
Dubinsky and Loken (1989) ethical basic leadership on promoting relied upon theory of
and Ajzen 1975; Fishbein, 1979). Dubinsky proposed two or three variables which sway
reference.
Simultaneously in (1989) Ferrell, Gresham, and Fraedrich combination other model and
built up a more complete five stage model of ethical choice. Ethical basic leadership
process goes from five stages, Awareness (of ethical issue), Cognition (stage of cognitive
individual moderator, which sway each stage of the procedure. He incorporated the piece
of Kohlberg, Ferrell and Gresham and Hunt and Vitell and gives more informative view
After that most far reaching Jones model (1991) was exhibited. He introduced a moral
intensity as in his issue unforeseen model and he fights that moral intensity which is the
degree that individuals believe that to be issue as an ethical one effect each portion of
moral basic leadership and direct, component of moral intensity which sway the
of impacts, these huge component was ignored by all past existing models.
Woceshym (2011) proposed a model of ethical decision making, he battled that both
conscious and subconscious, natural procedures work when choices are being made.
Further, it is fought that the choice maker spirals back endive of forward between the two
handling while at the same time perceiving moral difficulties and applying moral
standards and getting to and utilizing subconscious, information about them and contend
that levelheaded vanity the ethical code that long stretch achievement of associations
when fused with essentials, this model relied upon thinking, instinct and good standards.
Past all current model from review of these each and every current model and theory, I
can ensure that each and every model has been expected a significant job in the headway
specialists. This can be contemplated that to arriving at ethical choice conduct it goes
from one stage to other and affected by interceding determinants, which can be requested
al., 2003; Brown et al 2005 ; Walumbwa and Schaubroeck, 2009; Kalshoven et al., 2010).
Traits are acquired characteristics of a person in the early research custom. Numerous
researchers are of the feeling that any trait's impact on ethical behaviour since it generally
rely upon the circumstance (Yukl and Van Fleet, 1992; Huges, Ginnet and Curphy 1996).
Personality is the reliable musings and behaviour of a person's that are steady after some
time and generally predictable crosswise over various circumstances (Roberts and
In this manner, personality traits are perceived as an influential factor towards individual
1991; Goodstein and Lanyon, 1999). In light of this thought, in this investigation, five
traits. In 1985 when any analysis, the other 2 additional, and printed the modern
Openness to
Experience
Conscien-
Neuroticism
tiousness
The Big 5
Personality Traits
Agreeable Extraversion
Figure 2.3.1: The Big Five Personality Traits Model Adapted from Lewis Goldberg 1980
2.3.2 History and Development of Big-five Personality Traits
Improvement of the Big-Five character qualities started in 1884, when Sir Francis Galton
single terms in English and various tongues), and examined the dictionary for
recognizing descriptive terms that can be used for explaining individuals' aberrations
(Goldberg, 1993; Trull, 2012). Later on, Allport and Odbert (1936), and Norman (1967)
corrected and diminished Galton's (1984) descriptive-terms reliant on the Second and
One of the principle experts, who used Galton's (1984) terms to perceive character
descriptors, was Louis Thurstone. Thurstone (1934), who led factor examination
Be that as it may, Thurstone didn't continue with his work and decided to use diagonal
instead of five factors (Thurstone, 1953). At that point, using Allport and Odbert's (1936)
4500 descriptive traits, Cattell (1943) recognized 35 bipolar variables (each pole
incorporated a couple of articulations and modifiers). I can say that the present Big-Five
character traits are subsidiaries of these bipolars. Instead of Cattel, who kept up for a
couple of times that more than dozen factors were removed from bipolar variable by
using diagonal turn, various pros, for instance, Smith (1967), and Digman et al. (1981)
were among others who uncovered only five factors from Cattell's (1943) variables
Thereby, the initial step was to investigate the dictionary to distinguish terms that
describe personality traits (for example people's suffering styles of reasoning, acting, and
feeling). At the point when these descriptive terms structure an example (for example
typically accompanies sprightliness and vitality. In this way, the example among these
traits build a personality called "extraversion" (McCrae and Costa Jr., 1997
Neuroticism. These personality traits are the most adequate proportions of human
personality (Gurven et al., 2013; Wilt and Revelle, 2015). The writing on the Big-Five
personality traits including the set up results and the connection to ethical behaviour of
workers are displayed independently for every one of personality traits. Prior to
displayed so as to clarify how the Five Factor Model (FFM) depicts such a wide varieties
of personality traits.
In establishing the theoretical link between each of the Big-Five personality traits and
employed. In other words, hypotheses were developed and justified by finding the link
between the Big-Five personality traits and any of the ethical behaviour of employee's s
cognitions or dimensions.
The most widely accepted system to emerge from this approach was "The Big Five" or
"Five-Factor Model" (Goldberg, 1990; McCrae and John, 1992; McCrae and Costa,
1987). The Big Five comprises five major traits shown in the Table below. A way to
remember these five is with the acronym OCEAN (O is for Openness; C is for
Big 5 Definition
Personality Traits
Openness to The tendency to appreciate new art, ideas, value, feelings, and
Experience behaviour
individual is happy to think about new thoughts and openings". In spite of the fact that
openness can be for the most part portrayed as an element of personality mirroring the
(DeYoung,2014; DeYoung, Quilty and Peterson, 2007). They will in general feel
curiously about things and will receive new items or things more rapidly than those with
2.3.3.2 Conscientiousness
Conscientiousness, which has developed as the Big Five build most reliably identified
with execution crosswise over employments ((Barrick and Mount, 1991; Salgado, 1997),
steadfastness (mindful and cautious), and efficiency (planful and composed). An upright
2.3.3.3 Extraversion
Extraversion, as a personality trait, was first proposed by noted psychiatrist Carl Jung
during the 1920s. Extroverts are regularly unjustifiably pegged as excessively garrulous
and neighborly individual. As a general rule, they essentially gain vitality from
connecting with internet based life association. Outgoing individual has the personality
traits of kind disposition, sociability (cordial and straightforward), forward, dynamic, and
whimsical (Bratton and Strittmatter, 2013). Extroversion obviously has a solid hereditary
part. Twin investigations propose that hereditary qualities contribute somewhere close to
2.3.3.4 Agreeable
That form of agreeableness is conformism. In other words, the higher the score the more
likely one is to conform to the group. Agreeableness is the personality trait characterized
others (Camps et al., 2016).It also means by accepting the ideas of other people without
behaviour. Literally, high attitude of agreeableness can avoid from having arguments and
measurements.
2.3.3.5 Neuroticism
being on edge, temperamental, pushed, and hasty (Kalshoven et al., 2011). In reality,
neuroticism is rarely fun for anyone, though some research can predict student success
and may be correlated with certain reproductive benefits. According to Dr. Benjamin
So how might it feel to be educated that your entire personality can be illustrated with
scores on just five personality traits? Do you think these five scores get the flightiness of
your own and others' trademark examples of contemplations, feelings, and behaviours? A
considerable number individual would almost certainly say no, showing some exclusion
in their conduct that contention with the general example that others may see. For
instance, you may know people who are warm and well-arranged and feel that it's easy to
visit with stranger at a social affair yet are startled if they have to perform before others
or address tremendous get-togethers of people. The path that there are different
techniques for being extraverted or honest shows that there is a motivator in considering
lower-level units of personality that are more explicit than the Big Five traits. These
Big 5
Facets
Personality Traits
Fancy prone,
Open feelings
Openness to
Open to diverse behaviour
Experience
open to new and different ideas
open to various values to belief
Competent
Orderly
Dutiful
Conscientiousness
Achievement oriented
Self-disciplined
Deliberate
Gregarious (sociable)
Warm
Assertive
Extraversion
Active
Excitement-seeking
Positive emotionality
Trusting
Straightforward
Altruistic
Agreeable
Compliant
Modest
Tender-Minded
Anxious
Angry
Depressed
Neuroticism
Self-consciousness
Impulsive
Vulnerable
Table 2.3.4: Facets of Big 5 Personality Traits
2.3.5 Big-Five personality traits and its Global Application
Since personality traits are gotten from language, thusly, there is a likelihood that
personality traits fluctuates crosswise over various societies. Presently, the inquiry is
whether personality is general. Many multifaceted analyses have been led to see whether
examinations have tried FFM in excess of fifty social orders and crosswise over six
al., 2013; McCrae and Costa Jr., 1997; Bond et al., 1975; Schmitt et al. 2007).
Costa and McCrae's (1985, 1992) NEO and amended NEO personality inventories are the
most extensive estimations of the Big-Five personality traits. In any case, the length and
cost thought of these measures have been tricky for some examinations. To conquer the
issue, Goldberg, (1990, 1992) created 100 thing markers, with the goal that they can be
utilized as an option in contrast to NEO personality inventory. Later on, Saucier (1994)
abreviated Goldberg's (1992) markers and thought of 40 smaller than expected markers to
rule related legitimacy appraises between Goldberg's (1992) and Saucier's (1994)
measures, Dwight et al. (1998) indicated that there is a solid likeness between the two
estimates' predictive validities. Table 2.2.6 provides descriptions of people who would
untraditional down-to-earth
disciplined
affectionate unenthusiastic
forgiving
inadequate
Table 2.3.6: Example behaviours for those scoring high and low for the big 5 Personality
traits
2.4 Hotel Industry in Malaysia
As a sub-sector to services sector, tourism has a development in outside trade salary from
RM17.3 billion in year 2000 to RM46.1 billion of in 2007 (Bank Negara Malaysia
[BNM], 2008). It shows that tourism had an improvement in its income for 166% in a
time of only 7 years. This is for the most part a result of the effects of campaigns "Visit
Malaysia Year" (Poon and Low, 2005) and "Cuti-cuti Malaysia". Modern, tourism has
recorded full scale receipts of RM49,561.2 million for the year 2008, an expansion of
RM3,491.2 million from year 2007 (Tourism Malaysia Corporate, 2009). Flood impacts
have been made by the extension in tourism exercises into various sectors of the
economy. All things considered, the steadily advancement of tourism industry has added
to the improvement of each and every related industry and associations. These included
hotel industry, retail organizations, eateries and transportation (Bank Negara Malaysia
[BNM], 2008).
convenience to explorers and travelers. Everything considered, hotel industry has been a
approximately 50 percent of the nation's veritable GDP (Awang, Ishak, Radzi, and Taha,
2008). As today, there are 122 hotels with different evaluations and sizes in Kuala
Lumpur alone (Ministry of Tourism, Arts, and Culture Malaysia, 2018). This has
demonstrated that Kuala Lumpur has a staggeringly high thickness of hotels. Here the
issue rises, how is the hotel business in Kuala Lumpur adjusted to the perpetual
is in light of the fact that the land area of Kuala Lumpur has recently 244km², suggesting
that there will be 1 hotel in each 2.3km². In this sense, hoteliers need to find various ways
to deal with manufacture their productivities. indeed, even in their ethical conduct at the
working environment.
As of late, governments from wherever all through the world have been setting
progressively more accentuation in creating services industry in their countries. They are
on the whole now mindful of the remarkable quality of services and its significance in
grounded advancement to the extent worth included and budgetary effectiveness (Wirtz
and Ehret, 2009). Hypothetically, any relationship in creating nations must endeavor
progressively more work will be given, and so forth. Thusly, these have made hotel
industry as a key sub-sector to services industry and these social commitments should not
The Ritz-Carlton Hotel Kuala Lumpur is situated in Kuala Lumpur's " Golden Triangle "
business territory and abutting Bintang Walk, the city's type of New York's fifth Avenue
with various retail and eating alternatives. The Ritz-Carlton, Kuala Lumpur has done
Malaysia pleased by winning "Best Hotel in Asia" in the first ever " Ultimate Service
Award " sorted out by CNN Partner Hotels, American Express and Taylor Nelson Sofres
Hospitality and Leisure. The Ultimate Service Award is the first overall respect that
perceives and remunerates incredible assistance in the hotel industry. It is planned for
perceiving hotel and their employees that attempt to ensure their clients' visits are
significant and charming. A sum of 2,500 nominations was gotten from 128 countries
Europe, Middle East, Africa, North America, South America and Central
The Ritz-Carlton Hotel, Kuala Lumpur, "Malaysia's luxury boutique hotel", has won the
desired Five Star Diamond Award for the fifth consecutive year. The hotel was also
casted a ballot "Best Hotel in Malaysia 2001" by readers of Asia cash and Finance Asia
magazine. Moreover, it was chosen as one of "Top 30 Asian Hotels" in Condé Nast
a universal jury of hospitality experts and peers, for the most part from the World Travel
and Tourism Council. Awards are given both on a general world-level premise, and on
tourist attractions, and airlines/transport. They have been portrayed as the "Oscars of the
travel industry". Khalil El-Mouelhy was the chief of the World Travel Awards. As The
Ritz-Carlton Hotel Kuala Lumpur has a good reputation in hotel industry in Malaysia, the
personality traits of the employees are investigated to find the relation between
personality traits towards their ethical behaviour at workplace. The following table
shows the highest achievement of The Ritz-Carlton Hotel Kuala Lumpur in global
recognition.
Table 2.4.2.1: The Ritz-Carlton Hotel Kuala Lumpur Awards and Recognition from the
World Travel Awards (2005 – 2019)
Source: The World Travel Awards 2019
The table below shows the total number of hotel in Malaysia. Including Peninsula
Sabah / Sarawak
Sabah 449 175 16,738 0 0 121 2,694 296 19,432
Sarawak 291 106 10,274 1 215 114 2,577 221 13,066
Total 740 281 27,012 1 215 235 5,271 517 32,498
Federal Territory
Kuala
Lumpur 344 122 30,465 15 3,473 32 1,518 169 35,456
Putrajaya 7 5 1,152 0 0 1 59 6 1,211
Labuan 41 19 1,112 0 0 7 125 26 1,237
Total 392 146 32,729 15 3473 40 1,702 201 37,904
Overall Total 3,516 1,238 169,617 25 5,403 786 19,275 2,049 194,295
Table 4.2.2.2 Tourism Accommodation Registration And Classification Statistics of
Hotel Until August 2018
Source: Ministry of Tourism, Arts and Culture Malaysia, October 2018
2.5 Relationship between Personality Traits and Ethical Behaviour
During the 1980s, the media exposed the public to several scandals including the defense
industry. In 1991, UNYSIS Corporation was seen as liable of civil and criminal charges
of conspiracy to defraud the government, pay off and filling false cases on government
contracts. In results of that, the ethical conduct of individuals and organizations has gone
under increased public awareness on how significance in adjusting ethical conduct in the
workplace. Truth be told, as indicated by a 1987 Time Magazine Study, 76% of the
American public saw an absence of business ethics in managers as adding to the decay of
With respects of the usage of the laws and regulations, individual, business owners and
organizations understood the significance of executing ethical basic leadership and ethical
conduct in the workplace and corporate culture. Organizations are monitoring the unethical
business practices since it can prompt the negative assessments from the public.
Furthermore, the practices additionally can expand the likelihood of budgetary issue may
emerge. In view of the proof relating facets of personality to different types of moral conduct
(Colquit et al., 2006; McAdams, in press), the moral personality have been recognize as The
Big Five Personality. Personality is the just one sort of individual contrast; there are others
that might be similarly great, or maybe more grounded, associates of an individual's pledge to
an ethical philosophy.
Theoretical framework that is utilized in this study is The Big Five Personality Model
where the underlying model was progressed by the Ernest Tupes and Raymond Christal.
J.M Digman proposed his five consider model of character 1990, and Goldberg stretched
out it to the most significant level of organizations in 1993as can be seen in figure 2.1.
2.7 Conceptual Framework
found. In this situation, the employee ethical behaviour may be affected by the various
personality traits. Figure 2.7 below shows the independent variables of personality traits
and these variables will influence the employee’s ethical behaviour which is what the
researcher want to study in this research. This means that when the independent variable
Personality Traits
Openness to
Experience
H1
Conscientiousness
H2 Ethical Behaviour of
Employees
Extraversion H3
H4
Agreeable H5
Neuroticism
Figure 2.7– Adapted from The Government Annual Research Journal of Political Science
Conceptual Frameworks of Personality Traits and Ethical Behaviour
Source: Ernest Tupes and Raymond Christal. J.M Digman , 1990; Lewis Goldberg1993
2.8 Hypothesis Development
The following hypotheses have been developed in order to determine the relationship
H1: There would be a significant relationship between openness to experience and ethical
behaviour of employees.
behaviour of employees.
H3: There would be a significant relationship between extraversion and ethical behaviour
of employees.
H4: There would be a significant relationship between agreeable and ethical behaviour of
employees.
H5: There would be a significant relationship between neuroticism and ethical behaviour
of employees.
2.9 Summary
In this chapter the researcher has been discussing about the literature review on the
personality traits and the ethical behaviour from the previous research that has been
found. Each of the personality traits are explained thoroughly as well as the dimension of
relationship between the variables. In order to measure the impact, the hypothesis is
developed to attain it. This chapter extensively looked into the literature to address the
At last, antecedents and results of ethical conduct of employees were altogether looked
into not exclusively to give the foundation of the research (replying: Where does the ebb
and flow research fit in the literature?) yet in addition to show why distinguishing and
having enabled employees are significant (replying: Why are the research questions
significant?).