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Influence of Organizational Culture On Performance of The Kenyan Hotel Industry: A Study of Four-And Five-Star Hotels in Nairobi County, Kenya
Influence of Organizational Culture On Performance of The Kenyan Hotel Industry: A Study of Four-And Five-Star Hotels in Nairobi County, Kenya
BY
SUMMER 2020
INFLUENCE OF ORGANIZATIONAL CULTURE ON
PERFORMANCE OF THE KENYAN HOTEL INDUSTRY: A
STUDY OF FOUR- AND FIVE-STAR HOTELS IN NAIROBI
COUNTY, KENYA
BY
SUMMER 2020
STUDENT’S DECLARATION
I, the undersigned, declare that this is my original work and has not been submitted to any
other college, institution or university other than the United States International
University - Africa in Nairobi for academic credit.
This research project report has been presented for examination with my approval as the
appointed supervisor.
ii
COPYRIGHT
All rights reserved. No part of this work may be reproduced, stored in a retrieval system
or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without the express written authorization from the writer.
iii
ABSTRACT
The general objective of this research was to investigate the influence of organizational
culture on performance of the hotel industry among four- and five-star international chain
hotels in Nairobi County. The study was guided by the following objectives: to examine
the influence of outcome orientation on the performance of four- and five-star hotels in
Nairobi, to establish the influence of team orientation on the performance of four- and
five-star hotels in Nairobi, and to assess the influence of client orientation on the
performance of four- and five-star hotels in Nairobi.
This study used an explanatory research design. The population of the study comprised of
all the four- and five-star hotels in Nairobi County registered under the Kenyan Tourism
Regulatory Authority (TRA) and were 15 in number. The study selected five (5)
managers from each establishment to comprise a population of 75 respondents. The
sampling frame for this study was made up of the official list of four- and five-star hotels
within Nairobi County, and was obtained from the TRA. This study made use of the
purposive sampling technique, and the sample size was 75 respondents. Data was
acquired using structured self-administered questionnaires. Descriptive statistics were
analyzed using graphs, pie charts, frequency Tables and other measures of Central
Tendency. Inferential statistics were analyzed using correlation and regression. Further,
regression was used to predict the actual values by which the independent variables
influenced the dependent variable.
The results for outcome orientation and organizational performance showed that, outcome
orientation was significant to organizational performance (r=0.706, p<0.05). Regressions
confirmed that 49.9% of the change in organizational performance within the four- and
five-star hotels could be attributed to outcome orientation, and a unit increase of outcome
orientation is predicted to result in a 0.578-point increase in organizational performance.
The study affirmed that four- and five-star hotels’ business units emphasize action and
results i.e. have high expectations for performance, and their employees exert maximum
effort into their work.
For team orientation and organizational performance, the study showed that, team
orientation was significant to organizational performance (r=0.864, p<0.05). Regressions
confirmed that 74.6% of the change in organizational performance within the four- and
iv
five-star hotels could be attributed to team orientation, and a unit increase of team
orientation is predicted to result in a 0.686-point increase in organizational performance.
The study revealed that the hotel employees stress collaboration and cooperation in
performing their activities and making decisions, and management facilitate team
orientation through the creation and enhancement of a sense of belonging and oneness
among the employees.
For client orientation and organizational performance, the study showed that, client
orientation was significant to organizational performance (r=0.773, p<0.05). Regressions
confirmed that 59.7% of the change in organizational performance within the four- and
five-star hotels could be attributed to client orientation, and a unit increase of client
orientation is predicted to result in a 0.604-point increase in organizational performance.
The study showed that client orientation is strategy that the hotels used to be recognized
and stand out from the rest, and it had enhanced the hotels’ understanding in designing
new or improved services to meet its customers’ needs.
The study concludes that outcome orientation had enabled the hotels placed emphasis on
rewarding intangible elements of performance as well as observable metrics, and their
evaluation systems rewarded employee behavior as compared to absolute standards.
Teamwork orientation among employees has facilitated their personal learning, although,
it has also made it difficult to notice employees who work harder than others. Finally,
client orientation is strategy that the hotels used to be recognized and stand out from the
rest, and it had enhanced the hotels’ understanding in designing new or improved services
to meet its customers’ needs.
On outcome orientation, the study recommends that the managers of these four- and five-
star hotels need to provide employees with proper objectives, in order to minimize their
reliance on the common mission to organize their work. For team orientation, the study
recommends these managers to ensure that they put in place measures that evaluate
employees’ individual performance, thus improve client orientation, the study
recommends these managers to ensure that they motivate their employees by making the
job meaningful to them. This will enable the employees to identify with the hotel, and
thus align their goals with those of the hotel.
v
ACKNOWLEDGEMENTS
I take this opportunity to thank the Almighty God for the gift of life, health and the
strength to complete this work. Second, I wish to thank my university supervisor for her
input and invaluable advice in coming up with this research project report. My extreme
appreciation also goes to the entire faculty members especially my lecturers in Strategic
Management. To all my relatives and family members, thank you for your continued
support and encouragement that you have exhaustively given to me over the time. Words
alone may not be enough to express my gratitude but I pray that God enriches you all
with His unending grace.
vi
DEDICATION
This work is dedicated to those who work hard to ensure that the hotel industry in Kenya
attains high standards.
vii
TABLE OF CONTENTS
STUDENT’S DECLARATION ........................................................................................ii
COPYRIGHT ....................................................................................................................iii
ABSTRACT ....................................................................................................................... iv
ACKNOWLEDGEMENTS ............................................................................................. vi
DEDICATION..................................................................................................................vii
TABLE OF CONTENTS ...............................................................................................viii
LIST OF TABLES ............................................................................................................ xi
LIST OF FIGURES .........................................................................................................xii
LIST OF ABBREVIATIONS ........................................................................................xiii
viii
CHAPTER THREE ......................................................................................................... 25
3.0 RESEARCH METHODOLOGY ............................................................................. 25
3.1 Introduction .................................................................................................................. 25
3.2 Research Design........................................................................................................... 25
3.3 Population and Sampling Design ................................................................................. 26
3.4 Data Collection Methods ............................................................................................. 27
3.5 Research Procedures .................................................................................................... 28
3.6 Data Analysis Methods ................................................................................................ 29
3.7 Chapter Summary ........................................................................................................ 30
ix
REFERENCES ................................................................................................................. 62
APPENDICES .................................................................................................................. 67
APPENDIX I: LIST OF FOUR- AND FIVE-STAR HOTELS ................................... 67
APPENDIX II: IRB APPROVAL .................................................................................. 68
APPENDIX III: COVER LETTER ............................................................................... 69
APPENDIX IV: QUESTIONNAIRE ............................................................................. 70
APPENDIX V: NACOSTI RESEARCH PERMIT ...................................................... 74
x
LIST OF TABLES
Table 3.1: Reliability Results............................................................................................. 29
Table 4.1: Outcome Orientation and Organizational Performance Rating ........................ 36
Table 4.2: Means for Outcome Orientation and Organizational Performance .................. 37
Table 4.3: Correlations for Outcome Orientation and Organizational Performance ......... 37
Table 4.4: Model Summary: Outcome Orientation and Organizational Performance ...... 38
Table 4.5: ANOVA for Outcome Orientation and Organizational Performance .............. 38
Table 4.6: Coefficients for Outcome Orientation and Organizational Performance ......... 39
Table 4.7: Team Orientation and Organizational Performance Rating ............................. 40
Table 4.8: Means for Team Orientation and Organizational Performance ........................ 41
Table 4.9: Correlations for Team Orientation and Organizational Performance............... 42
Table 4.10: Model Summary: Team Orientation and Organizational Performance .......... 42
Table 4.11: ANOVA for Team Orientation and Organizational Performance .................. 43
Table 4.12: Coefficients for Team Orientation and Organizational Performance ............. 43
Table 4.13: Client Orientation and Organizational Performance Rating ........................... 45
Table 4.14: Means for Client Orientation and Organizational Performance ..................... 46
Table 4.15: Correlations for Client Orientation and Organizational Performance ............ 47
Table 4.16: Model Summary: Client Orientation and Organizational Performance ......... 47
Table 4.17: ANOVA for Client Orientation and Organizational Performance ................. 47
Table 4.18: Coefficients for Client Orientation and Organizational Performance ............ 48
Table 4.19: Model Summary: Organizational Culture and Organizational Performance . 48
Table 4.20: ANOVA for Organizational Culture and Organizational Performance ......... 49
Table 4.21: Coefficients for Organizational Culture & Organizational Performance ....... 49
xi
LIST OF FIGURES
Figure 4.1: Response Rate ................................................................................................. 31
Figure 4.2: Gender ............................................................................................................. 32
Figure 4.3: Education ......................................................................................................... 32
Figure 4.4: Hotel Star Rating ............................................................................................. 33
Figure 4.5: Years with the Hotel ........................................................................................ 33
Figure 4.6: Respondent’s Position ..................................................................................... 34
Figure 4.7: Years with in the Position ............................................................................... 34
xii
LIST OF ABBREVIATIONS
xiii
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background to the Problem
In the competitive global market, managers encounter a lot especially in the world of
business. A number of the challenges include the increase in global price competition and
satisfying demands of different stakeholders (Bolboli & Reiche, 2016). Managers have
more challenges in establishing an effective organizational culture in the corporate world
hence is an essential element which enhances productivity (Kenny, 2017). Making profit
is the key or aim for any business that exists and scope expansion is essential for the
business growth and expanding (Erdorf, Hartmann-Wendels, Heinrichs & Matz, 2016).
Establishing an effective culture within diversified companies includes additional
challenges for business managers in a corporate group than for managers in a single
company (Lee & Huang, 2014).
Idris and Agbim (2015), argue that poor cultural integration within diversified business
companies affects the economic performance of the corporate group and the shareholders’
value. Bolboli and Reiche (2016) argue that more than 90% of business excellence
initiatives fail to succeed because of poor cultural integration among company managers
in the corporate group. The cultural difference that exists within the group is a major
barrier to corporate performance. Poor performance and productivity in the corporate
group is caused by lack of effective organizational culture (Eaton & Kilby, 2015).
Business managers must understand the importance of effective organizational culture to
improve performance and productivity in the corporate group (Viegas‐Pires, 2016).
According to Shahzad, Luqman, Khan and Shabbir (2017), it comprises of the values and
behaviors that contribute to the unique social and psychological environment of an
organization. Organizational culture includes those unique traits that the organization
exhibits that acts as the adhesive for a shared goal. These include innovation, outcome
orientation, team orientation and client orientation (Zheng & McLean, 2016). On the
other hand, it is based various facts as on shared attitudes, beliefs, customs, and written
and unwritten rules developed over time and are considered legitimate. Shazhad et al.
(2017) posits that an ideal organizational culture must contain the following: the ways the
organization conducts its business, treats its employees, customers, and the wider
community; the extent to which freedom is allowed in decision making, developing new
ideas, and personal expression; how power and information flow through its hierarchy,
and how committed employees are towards collective objectives, thus facilitating
organizational performance.
2
In order to achieve the desired level of financial performance, many organizations have
restructured, and implemented total quality management programs and introduced
competitive staff benefits (Dasanayake & Mahakalanda, 2016). Despite such attempts,
many organizations have not achieved the anticipated results or have not experienced
high performance. Analyses of the sustained superior financial performance of certain
American organizations have attributed their success to the specific cultures of the
respective organizations (Zheng & McLean, 2016). Organizational performance includes
effectiveness, efficiency, productivity, quality, and innovation.
The global hotel industry total retail value is $493.76 Billion (Morris, 2017). Some of the
best hotels in the world are characterized by high turnover in terms of profits and returns;
for example, Morris (2017) avers that as at 2016, the Marriot Hotels, the largest chain of
hotels in the world, had close to 6,080 properties spread across 110 countries worldwide
with 1.2 million rooms. Its revenue had reached $17.07 billion. The hotel has 226, 500
employees worldwide. Morris (2017) posits that the hotel has won accolades owing to its
superior business ethics. This hotel is followed by Hilton hotel which had over 5,000
properties and 812,341 rooms spread across 103 countries across the globe. Others such
as Accor Hotels, Wyndham Hotels Group, Hyatt Hotels, Jing-Jang, Shangri-La hotels and
Resorts, Melina Hotels and Intercontinental hotels have a similar pattern that characterize
them in terms of high profits, many employees and massive capacity in terms of rooms
for their clientele. These examples from the hotel industry point to the issue of
performance. For the hotels to attain the status that they have in the global scene, they
have prioritized performance. In fact, according to Sainaghi (2016) performance revolves
around an organization securing limited resources in the environment in order to attain an
advantage over others; that being the case, performance is the single most important goal
that any business pursues; it is both a means to an end and an end in itself because it not
only leads to profit making, but also it guarantees an upper edge of competitive advantage
over similar organizations in the market.
In the African context, the same scenario is replicated in the hotel industry. According to
Gonzales (2020), by the end of 2019, there were an additional 88,524 in the hotels across
the continent. Gonzales (2020) enlists Egypt as the country with the fastest growth in
hotels followed by Morocco, Nigeria, South Africa, Algeria, Cape Verde and Tanzania.
3
Taku (2017) notes that, since the year 2009, the number of hotels has doubled from 144 to
417 while the number of rooms has also increased from 30,000 to 73,000. However, in
spite of this growth, there is still shortage of quality hotels in the continent. This puts to
the fore the necessity for strategies that will enhance high performance in these hotels and
hence accord them competitive advantage (Sokro, 2018).
Locally, the Tourism industry in Kenya is a key driver of the economy; in fact, tourism is
the third largest earner of income after tea and horticulture. Owing to this, tourism in
Kenya has recorded impressive accolades as a key destination for international tourists
(Lorraine, Dorai & Zubair, 2017). Nairobi is a major tourist destination and thus a city
with a thriving hotel business. It is not only the capital city of Kenya; it also has one of
the busiest international airports in Africa like the Jomo Kenyatta International Airport
(JKIA), serving as a major hub in East Africa for cargo and tourist passengers (Sokro,
2018). The city also hosts the United Nations Environmental Program (UNEP)
headquarters and many consular offices which make it have an upper hand when it comes
to the hospitality industry (Gonzales, 2020).
The tourism sector recorded great improvements during the year under review despite the
prolonged electioneering period and negative travel advisories experienced in 2017. The
drivers of tourism growth in 2018 included improved security situation in the country,
aggressive promotion in domestic and international markets, visits by foreign dignitaries,
withdrawal of travel advisories and investor confidence (KNBS, 2018). Generally
according to KNBS (2018), the number of international arrivals by the purpose of visit
went up in the first and second quarter in 2017 however the visitors who came for
holiday, business and transit recorded declines during the third and fourth quarter of
2017; this may be attributed to the uncertainties witnessed during the electioneering
period.
In spite of the challenges of the time which saw a decline in performance of the hotel
industry due to the prolonged electioneering period, there were some hotels which
withered the turbulence and thrived in terms of profitability, customer focus, safety
strategies and retention of human capital. In fact, as Murathe (2018) reports, the Kenya
Tourism Regulatory Authority (TRA) awarded a total of eighteen hotels in Nairobi with
4
four-star ratings. For example, according to the TRA (2018), Intercontinental hotel has a
bed capacity of 372 while Radisson Blu has 354. However, it is Sarova Stanley that has
the highest number of bed capacity; at 440. The high bed capacity also implies that they
have more employees and organizational complexity in terms of management.
5
A study conducted by Olimpia and Maria-Cristina (2016) in Romania showed the
differences regarding the corporate culture between the hotel operated under a
management contract and the unit operated under a franchise agreement. Razali, Zahari,
Ismail and Jasim (2018) examined the relationship between the organizational culture, its
attributes and the effect towards job loyalty among the 5-star and 4-star hotel employees
in Malaysia, and their results showed that, three organizational cultural dimensions
(bureaucratic, innovative and supportive culture) were found to have significant impact
on employees’ loyalty).
Owusu (2019) carried out a study on the effect of corporate culture on organizational
performance of star-rated hotels in Ghana, and his study indicated that market culture was
the most prominent predictor of profitability, return on investment, growth in profit, and
sales volume. Chilla, Kibet and Musiega (2017) focused on the effects of organizational
culture on organizational performance in the hospitality industry in Kakamega, and their
study verified that certain elements of organization culture are positively and significantly
correlated to organizational performance. Ichak (2019) studied how organizational culture
influenced employee productivity in Nairobi’s Artcaffe, and the study showed that the
organizational culture of Artcaffe had a positive effect on employee performance because
of free and open communication between employees and management, and employees are
encouraged to be innovative.
The studies highlighted above, support the key actuality that organizational performance
has been one of the central issues for every organization and portrays corporate culture as
an indispensable factor influencing organization’s performance. In spite of the way that
numerous studies conducted show a positive relationship between organization culture
and organization performance, four- and five-star international chain hotels in Nairobi
County provide a clear study gap on the subject of organization culture on one hand, and
organization performance on the other. Since these studies have been done on
organizational culture relative to different variables, various contexts and time, none has
focused on the relationship of organizational culture and organizational performance
within four- and five-star international chain hotels in Nairobi County, which this study
sought to fill.
6
1.3 Objectives of the Study
The general objective of this research was to investigate the influence of organizational
culture on performance of the hotel industry among four- and five-star hotels in Nairobi
County.
1.5.2 Policymakers
The policy makers may be able to use the findings of this research on the influence of
organizational culture on performance of the hotel industry among four- and five-star
hotels in Nairobi, to come up with future policies that may guide organizational
management within the Kenyan hotel industry to come up with an organizational culture
that is focused on performance, while ensuring its employees are well catered for.
7
1.5.3 Academicians
Academicians may be able to acquaint themselves on the issue of how organizational
culture influences performance within the hotel industry, particularly among four- and
five-star international chain hotels in Nairobi. The study highlights the existing gaps that
future scholars and academicians may want to pursue.
8
1.7.4 Team Orientation
Team orientation refers to an individual’s propensity for functioning as part of a team and
the degree to which individuals prefer to work in group settings for task accomplishment
(Gruman & Saks, 2017).
9
CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
Organizational culture is deemed to be a set of basic values, perceptions, wants and
behaviors learned by a member of society from family and other important institutions,
and it forms in response to the need for external adaptation and survival as well as
internal integration, thus, this chapter presents literature on the issue of organizational
culture and its effect on organizational performance, but with specific focus on the
variables that characterize this culture namely: team orientation and its effect on
organizational performance, outcome orientation and its effect on organizational
performance, and client orientation and its effect on organizational performance.
This orientation refers to how an organization puts emphasis on the end results.
According to Alfani (2016), organizations which have high expectations for performance
and are competitive usually deliver high results. According to Thompson (2016), where
this culture is cultivated, employees are trained and mentored to sell the company’s
product effectively and in so doing, they learn how much money the department
contributes to entire organization. This is because once there are high expectations,
employees feel more committed in organizations which focus on pragmatic values where
the outcomes are given prominence than the processes. In these organizations, Alfani
10
(2016) argues that the employees have a perception of having to exert maximum effort
into their work. In fact, a positive correlation between outcome orientation and
performance of hotels was established in the hotels that were studied.
The organization can align things in a way that enhances service delivery among the
employees by coming up with organization mission that enhances common mission and
vision (Zheng & McLean, 2016). The advantage of this type of culture towards service
delivery is that employees give more willingly to their organization because they make
their contributions more freely in response to their commitment to the shared purpose,
and as a result, the entire organization prospers (Idris & Agbim, 2015). This implies that
with this type of culture both aspects of the interaction between social and organizational
cultures are taken into account, and this contributes greatly to individual behavior that
enhances employee participation, goal setting and individual growth across social cultural
contexts (Bolboli & Reiche, 2016).
Consequently, for the organization to deliver more effectively all employees must be
forecast towards common vision and mission. Employees must identify with the
organization and wants to continue actively participating in it. There must be willingness
to remain with a firm in the future. Willingness to expand effort in their accomplishment,
and intentions to continue working for the organization in the future (Idris & Agbim,
2015). Common vision and mission are usually stronger among longer-term employees,
those who have experienced personal success in the organization, and those working with
a committed employee group (Dasanayake & Mahakalanda, 2016). According to Zheng
11
and McLean (2016), culture is created around critical incidents; where norms and beliefs
arise around the way members respond to these critical incidents. This means that can be
a source of unity which can be used to as a tool by the organization to enhance service
delivery among employees.
Task orientation can also be adopted by the organization, but more emphasis on task
culture to enhance employee’s performance which is a good remedy to service delivery.
This means that if the intended results by employees is not achieved, they may end up
giving up or losing moral which may affect the organization negatively in terms of
service delivery (Humashu, 2019). The achievement orientation also has a disadvantage
in the fact that these organizations are often not well organized because employees lack
the necessary time for objective planning, and they may rely on the common mission to
organize their work (Dasanayake & Mahakalanda, 2016). When the mission takes on
different forms for various parts of the organization it may lose unity of effort
(Thompson, 2016). This means that task culture is a type of organization culture that
places a high priority on appropriate and constructive relationships among employees.
Hence it has been shown to result in both high satisfaction and high productivity in the
workplace (Nohria, 2017).
12
2.2.3 Relationship-Oriented Leadership
According to Alfani (2016), there exist mixed conclusions from studies that try to
determine the effects of task-oriented and relationship-oriented leadership: some show
that relationship-oriented leadership produces greater productivity, while some show that
task-oriented leaders create greater group efficacy. However, a common finding is that
relationship-oriented leadership will generate greater cohesion within groups, as well as
greater team learning. It is also supported by Madhani (2016), that relationship-oriented
leadership has stronger individual impact, and a positive effect on self-efficacy.
13
In companies that focus on measuring only the results without much regard to the process
only purely reward based on goal achievement. In these companies, one might observe
outcome-oriented and competitive cultures (Sorensen, 2017). Another categorization of
reward system might be whether the organization uses rankings or ratings. In an industry
where the reward system pits members on each other, there are rank competition and the
poor performers receive long-term or short-term punishments, it would be hard to develop
a culture of people orientation and may lead to a competitive culture (Humashu, 2019).
As for Thompson (2016), in outcome-oriented cultures managers and employees are held
accountable for success and utilize systems that reward employee and group output. In the
organizations that adopt this culture, it is more common to see rewards tied to
performance indicators as opposed to seniority of loyalty. Sheridan (2016) posits that
organizations that have a performance driven approach tend to outperform those which do
not have. However, on the contrary, Nohria (2017) posits that organizations which tend to
put a lot of emphasis on outcome tend to have high expectations from employees that
they may suffer negative consequences when the objective is not attained. At the same
time, the drive to attain objectives can easily encourage unethical behavior where the end
justifies the means. In this system, individuals perceive their peers as rivals and short-
term results are rewarded and this can lead to unhealthy working environments. In
cultures that observe safety, safety metrics are prioritized and the organization is proud of
its low accident ratings. What behaviors are rewarded, which ones are punished, and
which are ignored will determine how a company’s culture evolves (Bolboli & Reiche,
2016).
14
2.3 Team Orientation and Organizational Performance
Team orientation refers to an individual’s propensity for functioning as part of a team and
the degree to which individuals prefer to work in group settings for task accomplishment
(Gruman & Saks, 2017). Team orientation is generally viewed as stable enough to affect
how individuals respond to a particular situation, but can be changed over time through
experience (Albrecht, Bakker, Gruman, Macey & Saks, 2015). Team orientation is
defined as the degree to which the organizational members stress collaboration and
cooperation in performing business activities and in making business decisions (Muqadas,
Rehman & Aslam, 2017). Team orientation is a general disposition inclining some
individuals toward working in groups or teams, in other words, it means state of being
directed as a team (Albrecht et al., 2015).
Malik (2016) reported that team orientation is enhanced through the creation and
enhancement of a sense of belonging and oneness in the employees working in an
organization. Cooperation, individual recognition, good relationship between
management and employees, cultivation of a democratic, open culture and welcoming of
ideas from employees constitutes what encourages team orientation in an organization
(Muqadas et al., 2017). In a hotel setting, this is often encouraged where the employees
feel part and parcel of the organization and in turn translates to effectiveness in
discharging their respective roles (Malik, 2016). Team work occupies a cardinal role in
the hotel industry because the group ends up delivering the goal of the hotel through the
shared principles and values. This also manifests itself in the customers who are able to
detect the unity and focus that the hotel has; this in itself helps to widen the market base
because the hotel becomes identified with a culture of solidarity (Humashu, 2019).
15
ideas and to work together with a shared common purpose to the benefit of the
organization.
A growing body of research that indicates that personal factors such as collectivist value
orientation play an important role in individuals’ preference for teamwork, and an
individual’s propensity to work in a team is seen as a contributing factor in one’s personal
learning (Fransen, 2016). There has been extensive amount of research conducted on
teamwork orientation; however, the question of how individual cultural values influence
formation of teamwork orientation is still largely unanswered. The gap is widely seen
evident with regard to how the influence of collectivism on the development of positive
attitudes towards teamwork is promoted or inhibited by other values such as power
distance, uncertainty avoidance and masculinity-femininity (Gruman & Saks, 2017).
Moreover, the current evidence about the influence of teamwork orientation on personal
learning and the role of personal and contextual factors in such a relationship prompts
more investigations.
According to Gruman and Saks (2017), collective value has been identified as a factor
that increases individual prosperity to cooperate in team settings, in accordance to the
discussion of the factors that influence extent to which individuals are team oriented.
Although there is extensive research on collectivism at the cultural level, more recently
researchers have begun to study collectivism as an individual difference variable in team
16
contexts. Given that collectivism represents the degree to which an individual values
interdependence and attaches importance to group over individual goals, it seems logical
to examine its influence on the development of positive attitudes towards teamwork. The
existing research, however, has brought out the role of collectivism on team-oriented
attitudes and behaviors in isolation, neglecting the role of other values in these
relationships (Mushtaq, 2017). Shalley (2018) underscore that a complete value profile
should be considered rather than analyzing values in isolation when examining how
values relate to attitudes and behaviors.
Grissemann, Plank and Brunner-Sperdin (2017) argue that cultural values do not
influence the outcomes independent of each other since there is no theoretical rationale,
and these authors call for revisiting on the interaction effects of cultural values. Assaf and
Cvelbar (2017) portray that an association between preference to work in team settings
and personal learning. However, there is limitation on the evidence that supports the
influence of teamwork orientation on individual study to corroborate such a relationship.
Moreover, the existing research does not bring out to our understanding of the dynamic
interplay between team orientation and personal and contextual factors in predicting
outcomes. It is particularly evident that there is lack in establishing whether congruity of
one’s deep-level value orientations influences this relationship (Shalley, 2018). There is
hope for few expectations. Grissemann et al. (2017) suggested team orientation and
performance relationship may be influenced by different variables such as self-efficiency
and locus control, while Williams and Castro (2017) in their recent study reported that the
influence of team orientation on individual study is in relation to the team’s environment.
Furthermore, too much emphasis on team orientation fails to appreciate and enhance
individual effort. If all emphasis is channeled towards enhancing team work, then it can
be very difficult to notice those who work harder than the rest (Thompson, 2016). At the
same time, team orientation minimizes accountability as employees will tend to hide
behind the group and cultivate a tendency of passing the back. However, if well
construed, team orientation has more benefits than demerits (Williams & Castro, 2017).
17
2.3.3 Engagement
According to Kahn (2016) employees’ engagement is the simultaneous employment and
expression of persons preferred, in task behaviors that promotes connection to both work
and others, personal presence (physical, cognitive and emotional) and active full
performances. Engaged workers enjoy personal traits like self-efficacy, optimism,
resilience and self-esteem to control their work and achieve success in career (Luthans,
2017). Maslow, Frager, Fadiman, McReynolds and Cox (1970) provided the conceptual
model of human needs, and these needs identify the concept and base for employee
engagement. As such, a need of self-fulfillment, emotional satisfaction, and to become
everything one is capable of becoming creates identity for the employees through their
work engagement.
Another theory is the two-factor theory that provides another base for employees’ work
engagement. As such, Herzberg’s (1987) two-factor theory highlights how ignoring work
recognition can negatively affect employees’ internal efforts to engage in organizational
activities. This theory also identifies the causes of job satisfaction or dissatisfaction at the
work place. Furthermore, Herzberg’s (1987) two-factor motivation model identifies that
lack of incentives and trust leads to job dissatisfaction and disengagement. Moreover, the
personality trait theory offers evidence that passive personality and low level of
conscientiousness influence an employee’s work engagement negatively. Consequently,
rigid organizational policies, procedures, an uncomfortable working environment, no
recognition, and job insecurity may lead to job dissatisfaction among employees (Van
Dyne & Pierce, 2016). Prior research indicates that individuals work engagement is
extremely correlated with supervisor’s rating of job performance (Pech & Slade, 2016).
In-role performance is also referred to as task performance. Task performance is defined
as activities that add up to the technical core of an organization (Boyt, Lusch & Mejza,
2015).
Work engagement is valuable for both the workers and the organization as it has an
influence on how employees work and accomplish their tasks (Demerouti, Cropanzano,
Bakker & Leiter, 2018). While extra-role performance is referred to as contextual
performance that are behaviors exposed voluntarily and not a part of employees’ job
contract, these behaviors add up to the social core of organization (Pech & Slade, 2016).
18
Christian, Garza and Slaughter (2018) proved that there has been a positive impact with
association with job performance on regards to employees works engagement; results
were obtained by using supervisor’s rating of task performance and contextual
performance. Boyt et al. (2015) also argue that employees are rated high when they were
highly engaged in work. Thus, employees who are more engaged with work most likely
will be high on task performance and contextual performance because they have high
level of connectivity with their work and perform their task efficiently due to their ability
to work with others (Christian et al., 2018).
According to Eaton and Kilby (2015), client orientation can be defined as a set of beliefs
that prioritize customer’s interests while it does not neglect owners such as owners,
managers and employees. This is the extent to which the organization concentrates their
efforts on customer satisfaction. Kahn (2016) adds that the basis and principles of serving
customers are necessary in creating a trustable organizational culture which is capable of
delivering performance. Client orientation is perhaps the most important factor that makes
an organization to stand out from the rest. According to Grissemann et al. (2017), focus
on client orientation enhances hotel’s understanding and aid in designing new or
improved services to meet customer needs and thus enhance managerial and financial
performance. Christian et al. (2018) avers that hospitality industries have made empathy
19
and care an integral part of great customer service. Luxury hotels like The Ritz Carlton
have set dizzying benchmarks for an outstanding customer service culture. Their
customer success stories reflect how support agents look to delight customers at every
possible turn.
According to Nohria (2017), what differentiates companies with service culture from
those without such a culture may be the desire to solve customer-related problems
proactively. In other words, in these cultures, employees are engaged in their jobs and
personally invested in improving customer experience such that they identify issues and
come up with solutions without necessarily being told what to do. In companies which
have cultivated this approach, the employees are able to take note of issues affecting
customers, even before they complain, and have them sorted by the management. The
interest of the client is usually prioritized. Shahzad et al. (2017) posits that some
organizations usually experience lose if they do not adopt this culture. The clients, being
the engine of the performance of the organization in question, may migrate to another
company hence making it incur heavy losses.
Client orientation of the salesperson apparently plays a vital role in this context.
Motivation to expend efforts is created through rewards and the salesperson’s evaluation
of the job and its outcomes are the key to engage in client-oriented selling. The study by
Christian et al. (2018) attempted to develop a model incorporating three critical job-
related constructs (experienced meaningfulness, organizational identification, and pay
satisfaction and understand its influence on salespeople’s performance, mapping their
21
client orientation. The study is carried out among financial services salespeople in India
to authenticate the prescribed model (Alam, 2017). It has to be noted that when an
organization acquires the ability to make the job meaningful and motivates its salespeople
to identify with the organization by aligning organizational goals with individual goals, it
is possible that the employees tend to overlook the influence of monetary rewards (Lee &
Huang, 2014).
Sales people play a crucial role in providing added value in the exchange process and
forge long-term relationship with customers (Zheng & McLean, 2016). This aspect is
particularly significant in financial service industry, the specific context used for this
study, where due to the multiplicity and the complex nature of products and services,
customers depend on the advice given by salespeople while making investment decisions.
As a result, there is an increasing interest in the determining factors which can lead to
enhanced client orientation among employees as they engage in their job (Nohria, 2017).
Indications from the job characteristics model and research efforts conducted in this line
explain that experienced meaningfulness of the job is an important influence on
workplace behavior and performance. When employees feel that their organizations value
their contributions and cater to their welfare, it has a positive influence on the employees’
organizational identification (Bolboli & Reiche, 2016).
22
2.4.3 Meaningfulness
It is argued that, since employees spend more than 60 per cent of their life at their
workplace, they try to find meaning for their lives through the work they carry out
(Harish, 2016). Meaningfulness is explained as the level of significance a particular thing
conveys for an individual. Employees are likely to perceive greater meaning in their life
if they are able to develop rewarding interpersonal relationships with their co-workers
(Erdorf et al., 2016). It has been established through studies that employees are able to
impart greater meaning for the work they do when they are treated with dignity and
respect and when they find themselves to be useful and valuable to the firm (Luthans,
2017).
Personal association with the work that is carried out by the employee is radiated through
the perceived meaningfulness of the work (Harish, 2016). Employees would be able to
maintain happiness when they are able to experience engaging and meaningful work,
which can be justified in both individual and organizational contexts (Idris & Agbim,
2015). According to Nohria (2017), the attributes of skill variety, task identity and task
significance enhance the meaningfulness of a job as an employee experience it. In the
financial services sale’s scenario, employees are required to build and maintain profitable
and enduring relationships with customers.
It is apparent that the client occupies the most central position in a business or enterprise.
For these enterprises to thrive, they solely depend on the goodwill of the clientele. In the
hospitality industry, this cannot be overemphasized; the client is the most important
partner towards the success of the business (Grissemann et al., 2017). Therefore, those
hotels that thrive do so base on the fact that they have and must cultivate a strong
clientele that will keep them afloat. Nohria (2017) argues that a good strategy that puts
clients before anything is the surest way of succeeding and having a competitive
advantage over the rest. Indeed, client-oriented strategy encompasses actions such as a
strong front office that is tailored to specifically ensure that clients get the best
experience; an active complaints media that also gives the clients a room to vent their
disappointments and acts on these issues on the spot. It also must have a strong public
relations department which interacts with the clients both online, on call and physically
promptly and efficiently.
23
2.5 Chapter Summary
The literature reviewed has demonstrated the issue of organizational culture and its effect
on organizational performance, but with specific focus on the variables that characterize
this culture namely: team orientation and its effect on organizational performance,
outcome orientation and its effect on organizational performance, and client orientation
and its effect on organizational performance. The next chapter provides the
methodologies that were applied in conducting the research. Chapter four presents the
results and findings, and chapter five focuses on the discussions, conclusions, and
recommendations.
24
CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 Introduction
This chapter demonstrates how the research was conducted. Specifically, it examines the
study’s research design, the population and sampling design, where the population,
sampling frame, sampling design and the sample size are presented. The chapter
examines the data collection techniques, research procedures, as well as the data analysis
methods.
An explanatory study sets out to explain and account for the descriptive information. So,
while descriptive studies may ask ‘what’ kinds of questions, explanatory studies seek to
ask ‘why’ and ‘how’ questions (Grey, 2014). It builds on exploratory and descriptive
research and goes on to identify actual reasons a phenomenon occurs (Kumar, 2014).
Explanatory research looks for causes and reasons and provides evidence to support or
refute an explanation or prediction, and it is conducted to discover and report some
relationships among different aspects of the phenomenon under study (Cooper &
Schindler, 2014). This research design was used to explain how organizational culture
(independent variable) influenced the performance (dependent variable) of the four- and
five-star hotels in Nairobi – Kenya.
25
3.3 Population and Sampling Design
3.3.1 Population
A research population is generally a large collection of individuals or objects that is the
main focus of a scientific query. It is for the benefit of the population that researches are
done (Flick, 2015). A research population is also known as a well-defined collection of
individuals or objects known to have similar characteristics, i.e. all individuals or objects
within a certain population usually have a common, binding characteristic or trait (Butler-
Kisber, 2018). This study population comprised of all the four- and five-star hotels in
Nairobi County registered under the Kenyan TRA and were 15 in number as represented
in Appendix I.
26
purposive sampling is used in research in order to identify and select the information-rich
cases for the most proper utilization of available resources, as it involves identification
and selection of individuals or groups of individuals that are proficient and well-informed
with a phenomenon of interest. In this study, purposive sampling was used to selected
five (5) managers from each establishment to comprise a population of 75 respondents.
Managers were selected for the study, because they were the ones who were responsible
for creating and maintaining an organizational culture. The technique was used to
concentrate on the people who were best able to assist with the relevant research.
27
The study questionnaires were developed by the researcher using a simple language that
allowed the respondents to comprehend. This facilitated the questionnaires being self-
administered in nature. The questionnaire contained closed-ended questions, to ensure
that all respondents answered similar questions, based on the same scale that had been
provided on a Likert scale. Questionnaires were used because of their reliability, and ease
of analysis and interpretation. The questionnaires were divided into two broad sections.
The first section examined the demographic information, while the second section
focused on answering the research objectives. Part one of the second section examined
the influence of outcome orientation on the performance of selected four- and five-star
international chain hotels. Part two established the influence of team orientation on the
performance of selected four- and five-star international chain hotels in Nairobi County.
Part three assessed the influence of client orientation as a strategy on the performance of
four- and five-star international chain hotels.
A pilot test was conducted on the questionnaires, before actual administration. A pilot
study can be defined as a ‘small study to test research protocols, data collection
instruments, sample recruitment strategies, and other research techniques in preparation
for a larger study (Cooper & Schindler, 2014). A pilot study is one of the important stages
in a research project and is conducted to identify potential problem areas and deficiencies
in the research instruments, and protocol prior to implementation during the full study
(Kumar, 2014). To achieve this, the study used ten (10) respondents for piloting, who
were excluded in the final sample size.
28
The researcher used the Statistical Package for Social Sciences (SPSS) tool to examine
the reliability and consistency of the research questionnaire using the Cronbach alpha test.
Salda (2012) states that the Cronbach’s alpha is a coefficient that is commonly used to
test the reliability and consistency of structured questionnaires. According to Kumar
(2014), the threshold for the Cronbach alpha is set at ≥ 0.7, and thus, the study adopted
the same measure for a reliable and consistent instrument. Table 3.1 provides the
reliability results of the questionnaire, and it points to the evidence that the questionnaires
were reliable, because all the questionnaire coefficient results were >0.7.
The researcher collected the study data electronically, by use of Google form sheets. The
researcher re-created the study questionnaire, and attached the research permits on the
Google form sheets, where the link to the questionnaire was sent to the target population.
This data collection method was employed because it enabled the study researcher to
access the entire population within Nairobi County with ease.
29
independent variables influenced the dependent variable. These results were presented in
the form of tables.
30
CHAPTER FOUR
4.0 RESULTS AND FINDINGS
4.1 Introduction
The researcher analyzed data using the SPSS tool, and the results and findings have been
presented in this chapter. The chapter explicates the descriptive and inferential analysis
for the study objectives that examined the influence of outcome orientation, team
orientation, and client orientation on the performance of four- and five-star hotels in
Nairobi County.
31
Figure 4.2: Gender
4.2.2.2 Education
This study examined the academic qualification of the respondents, and Figure 4.3
presents this study result. It indicates that 55.7% held university degrees, 32.8% had their
diplomas, and 11.5% had attained Master’s degrees. This indicates that the managers of
four- and five-star hotels had a strong educational background, and therefore, were a great
fit for this study.
33
4.2.2.5 Respondent’s Position
This study sought to determine the position of the respondents, and the results were
presented in Figure 4.6. The Figure shows that most of the respondents, 75.4% were
middle-level managers, and 24.6% were senior managers. This means that the
management level was well represented in the study, and thus was not influenced by
management position.
34
4.3 Outcome Orientation and Organizational Performance
This section of the study focuses on providing the study results and findings for outcome
orientation and organizational performance. This has been achieved through the
discussions and presentation of the descriptive and inferential analysis for the influence of
outcome orientation on the performance of four- and five-star hotels in Nairobi County.
The hotel’s systems are altered when its mission changes, as indicated by 68.9% of the
respondents who agreed, while 22.9% disagreed, and 8.2% were neutral. The hotel
sustains the high energy and involvement of its employees, as indicated by 83.6% of the
respondents who agreed, while 9.8% were neutral, and 6.5% disagreed. The hotel
employees rely on the common mission to organize their work, as indicated by 90.2% of
the respondents who agreed, while 8.2% disagreed, and 1.6% were neutral.
The hotel’s leadership has generated greater cohesion within employee groups, as
indicated by 83.6% of the respondents who agreed, while 13.1% were neutral, and 3.3%
disagreed. The hotel places emphasis on rewarding intangible elements of performance as
well as observable metrics, as indicated by 83.6% of the respondents who agreed, while
9.8% disagreed, and 6.6% were neutral. The hotel’s evaluation systems reward employee
behavior as compared to absolute standards, as indicated by 92% of the respondents who
agreed, while 13.1% disagreed, and 4.9% were neutral.
35
Table 4.1: Outcome Orientation and Organizational Performance Rating
SD D N A SA
% % % % %
The hotel’s business units emphasize action and results 0 0 1.6 42.6 55.7
i.e. have high expectations for performance
The employees exert maximum effort into their work 0 3.3 9.8 49.2 37.7
Hotel employees are trained and mentored to sell the 0 0 3.3 47.5 49.2
company’s products and services effectively
The hotel relies on its common vision to trigger 1.6 11.5 6.6 47.5 32.8
employees’ personal energy in the pursuit of its goals
The hotel’s systems are altered when its mission 1.6 21.3 8.2 36.1 32.8
changes
The hotel sustains the high energy and involvement of 1.6 4.9 9.8 47.5 36.1
its employees
The hotel employees rely on the common mission to 1.6 6.6 1.6 60.7 29.5
organize their work
The hotel’s leadership has generated greater cohesion 0 3.3 13.1 41 42.6
within employee groups
The hotel places emphasis on rewarding intangible 0 9.8 6.6 42.6 41
elements of performance as well as observable metrics
The hotel’s evaluation systems reward employee 0 13.1 4.9 52.5 29.5
behavior as compared to absolute standards
36
Table 4.2: Means for Outcome Orientation and Organizational Performance
The hotel’s business units emphasize action and results i.e. have 4.54 .535
high expectations for performance
The employees exert maximum effort into their work 4.21 .755
Hotel employees are trained and mentored to sell the company’s 4.46 .565
products and services effectively
The hotel relies on its common vision to trigger employees’ 3.98 1.008
personal energy in the pursuit of its goals
The hotel’s systems are altered when its mission changes 3.77 1.175
The hotel sustains the high energy and involvement of its 4.11 .896
employees
The hotel employees rely on the common mission to organize their 4.10 .851
work
The hotel’s leadership has generated greater cohesion within 4.23 .804
employee groups
The hotel places emphasis on rewarding intangible elements of 4.15 .928
performance as well as observable metrics
The hotel’s evaluation systems reward employee behavior as 3.98 .940
compared to absolute standards
37
4.3.4 Regressions for Outcome Orientation and Organizational Performance
Regression analysis was conducted with the aim of predicting the behavior of the
dependent variable (organizational performance), based on the behavior of the
independent variable (outcome orientation). Table 4.4 presents the regression’s model
summary. The R² value of 0.499, means that, 49.9% of the change in organizational
performance within the four- and five-star hotels could be attributed to outcome
orientation.
The analysis of variance (ANOVA) was used to examine whether there existed any
statistically significant variances between the two study variables (outcome orientation
and organizational performance). Table 4.5 indicates that there existed a statistically
significant variance between outcome orientation and organizational performance, as
shown by the F-value of 58.766 df (1,59) was <0.05.
Regression coefficients were used to describe the relationship that existed between the
predictor variable (outcome orientation) and the response of the dependent variable
(organizational outcome). Table 4.6 presents the results of the regression coefficients, and
it shows that there existed a statistically significant relationship between outcome
orientation and organizational performance. This result signifies that, a unit increase of
38
outcome orientation is predicted to result in a 0.578-point increase in organizational
performance, i.e. organizational performance becomes better by β=0.578, p<0.01.
39
The community culture of the hotel has increased the employees’ propensity to cooperate
in team settings, as indicated by 85.3% of the respondents who agreed, while 8.2% were
neutral, and 6.6% disagreed. Teamwork orientation among employees has facilitated their
personal learning, as indicated by 88.5% of the respondents who agreed, while 6.6% were
neutral, and 4.9% disagreed. Team work in the hotel had made it difficult to notice
employees who work harder than others, as indicated by 60.6% of the respondents who
agreed, while 31.1% disagreed, and 8.2% were neutral. The self-fulfillment needs of
employees has created an identity for them through their work engagement, as indicated
by 86.9% of the respondents who agreed, while 6.6% were neutral, and 6.6% disagreed.
Employees’ work engagement in the hotel is extremely influenced by the supervisors’
rating of their job performance, as indicated by 77% of the respondents who agreed, while
11.5% were neutral, and 11.5% disagreed.
40
4.4.2 Means for Team Orientation and Organizational Performance
Table 4.8 presents the descriptive analysis for team orientation and organizational
performance. The table shows that the most significant variable for four- and five-star
hotels was that, team work is a prerequisite for the successful performance of the hotel
(M=4.43, SD=0.741). The study means for team orientation variables were ≥3.0, which
simply means that the statements were true for four- and five-star hotels in Nairobi
county. The standard deviation measured the variability of the received responses, and
their value of ≤1.5 means that, the responses’ variability was statistically insignificant.
41
4.4.3 Correlations for Team Orientation and Organizational Performance
Correlation analysis was carried out to examine whether the independent variable was
significant to the dependent variable, in this case whether team orientation was significant
to organizational performance. Table 4.9 shows that team orientation was significant to
organizational performance (r=0.864, p<0.05). This means that team orientation was
significant to the performance of four- and five-star hotels.
The ANOVA was used to examine whether there existed any statistically significant
variances between the two study variables (team orientation and organizational
performance). Table 4.11 indicates that there existed a statistically significant variance
between team orientation and organizational performance, as shown by the F-value of
173.312 df (1,59) was <0.05.
42
Table 4.11: ANOVA for Team Orientation and Organizational Performance
Model Sum of Squares df Mean Square F Sig.
1 Regression 14.100 1 14.100 173.312 .000ª
Residual 4.800 59 .081
Total 18.899 60
a. Predictors: (Constant), Team Orientation
b. Dependent Variable: Organizational Performance
Regression coefficients were used to describe the relationship that existed between the
predictor variable (team orientation) and the response of the dependent variable
(organizational outcome). Table 4.12 presents the results of the regression coefficients,
and it shows that there existed a statistically significant relationship between team
orientation and organizational performance. This result signifies that, a unit increase of
team orientation is predicted to result in a 0.686-point increase in organizational
performance, i.e. organizational performance becomes better by β=0.686, p<0.01.
43
4.5.1 Client Orientation and Organizational Performance Rating
Table 4.13 shows that client orientation is strategy that the hotel uses to be recognized
and stand out from the rest, as indicated by 93.5% of the respondents who agreed, while
3.3% were neutral, and 3.3% disagreed. Client orientation focus has enhanced the hotel’s
understanding in designing new or improved services to meet its customers’ needs, as
indicated by 93.5% of the respondents who agreed, while 3.3% were neutral, and 3.3%
disagreed. Client orientation effectiveness in the hotel depends on the environmental
conditions, as indicated by 85.2% of the respondents who agreed, while 8.2% disagreed,
and 6.6% were neutral. Hotel employees understand the management system in terms of
overall patterns, as indicated by 82% of the respondents who agreed, while 9.8% were
neutral, and 8.2% disagreed.
The hotel relies on the employees’ ability to develop profitable and long-lasting
relationships with customers, as indicated by 91.8% of the respondents who agreed, while
4.9% were neutral, and 3.3% disagreed. The hotel motivates its employees through
rewards and evaluation of their jobs, as indicated by 90.1% of the respondents who
agreed, while 8.2% were neutral, and 1.6% disagreed. The hotel has managed to make the
job meaningful to employees, to the point of them overlooking monetary rewards, as
indicated by 75.4% of the respondents who agreed, while 21.3% disagreed, and 3.3%
were neutral.
The hotel employees identify with the hotel because of how the hotel values their
contributions and caters to their welfare, as indicated by 85.2% of the respondents who
agreed, while 11.5% were neutral, and 3.3% disagreed. The hotel employees have
developed rewarding interpersonal relationships with their co-workers, as indicated by
83.6% of the respondents who agreed, while 13.1% were neutral, and 3.3% disagreed.
The hotel thrives as a result of cultivating a strong clientele that keeps them afloat, as
indicated by 88.5% of the respondents who agreed, while 8.2% were neutral, and 3.3%
disagreed.
44
Table 4.13: Client Orientation and Organizational Performance Rating
SD D N A SA
% % % % %
Client orientation is strategy that the hotel uses to be 0 3.3 3.3 36.1 57.4
recognized and stand out from the rest
Client orientation focus has enhanced the hotel’s 0 3.3 3.3 39.3 54.1
understanding in designing new or improved services
to meet its customers’ needs
Client orientation effectiveness in the hotel depends on 1.6 6.6 6.6 45.9 39.3
the environmental conditions
Hotel employees understand the management system in 0 8.2 9.8 44.3 37.7
terms of overall patterns
The hotel relies on the employees’ ability to develop 0 3.3 4.9 45.9 45.9
profitable and long-lasting relationships with customers
The hotel motivates its employees through rewards and 0 1.6 8.2 41 49.2
evaluation of their jobs
The hotel has managed to make the job meaningful to 3.3 18 3.3 29.5 45.9
employees, to the point of them overlooking monetary
rewards
The hotel employees identify with the hotel because of 0 3.3 11.5 37.7 47.5
how the hotel values their contributions and caters to
their welfare
The hotel employees have developed rewarding 1.6 1.6 13.1 39.3 44.3
interpersonal relationships with their co-workers
The hotel thrives as a result of cultivating a strong 0 3.3 8.2 24.6 63.9
clientele that keeps them afloat
45
Nairobi county. The standard deviation measured the variability of the received
responses, and their value of ≤1.5 means that, the responses’ variability was statistically
insignificant.
Client orientation is strategy that the hotel uses to be recognized and 4.48 .721
stand out from the rest
Client orientation focus has enhanced the hotel’s understanding in 4.44 .719
designing new or improved services to meet its customers’ needs
Client orientation effectiveness in the hotel depends on the 4.15 .928
environmental conditions
Hotel employees understand the management system in terms of 4.11 .896
overall patterns
The hotel relies on the employees’ ability to develop profitable and 4.34 .728
long-lasting relationships with customers
The hotel motivates its employees through rewards and evaluation 4.38 .711
of their jobs
The hotel has managed to make the job meaningful to employees, to 3.97 1.238
the point of them overlooking monetary rewards
The hotel employees identify with the hotel because of how the 4.30 .803
hotel values their contributions and caters to their welfare
The hotel employees have developed rewarding interpersonal 4.23 .864
relationships with their co-workers
The hotel thrives as a result of cultivating a strong clientele that 4.49 .788
keeps them afloat
The ANOVA was used to examine whether there existed any statistically significant
variances between the two study variables (client orientation and organizational
performance). Table 4.17 indicates that there existed a statistically significant variance
between client orientation and organizational performance, as shown by the F-value of
87.347 df (1,59) was <0.05.
47
Regression coefficients were used to describe the relationship that existed between the
predictor variable (client orientation) and the response of the dependent variable
(organizational outcome). Table 4.18 presents the results of the regression coefficients,
and it shows that there existed a statistically significant relationship between client
orientation and organizational performance. This result signifies that, a unit increase of
client orientation is predicted to result in a 0.604-point increase in organizational
performance, i.e. organizational performance becomes better by β=0.604, p<0.01.
48
The ANOVA was used to examine whether there existed any statistically significant
variances between the two study variables (organizational culture and organizational
performance). Table 4.20 indicates that there existed a statistically significant variance
between organizational culture and organizational performance, as shown by the F-value
of 67.653 df (3,57) was <0.05.
Regression coefficients were used to describe the relationship that existed between the
predictor organizational culture variables (outcome, team, and client orientation) and the
response of the dependent variable (organizational outcome). Table 4.21 presents the
results of the regression coefficients, and it shows that there existed statistically
significant relationship between team orientation and client orientation, but not with
outcome orientation.
49
When all the organizational culture variables are combined, the result signifies that, a unit
increase of outcome orientation is predicted to result in a 0.046-point decrease in
organizational performance, i.e. organizational performance becomes poor by β=0.046,
p<0.01. However, a unit increase of team orientation is predicted to result in a 0.544-point
increase in organizational performance, i.e. organizational performance becomes better by
β=0.544, p<0.01, and a unit increase of client orientation is predicted to result in a 0.232-
point increase in organizational performance, i.e. organizational performance becomes
better by β=0.232, p<0.01.
From the obtained results, it can be concluded that the combination of organizational
culture variables (outcome orientation, team orientation, and client orientation) within the
four- and five-star hotels in Nairobi county, results in outcome orientation becoming
insignificant. However, team orientation retains its significance with a higher value, when
compared to client orientation. Thus, managers of these hotels need to prioritize team
orientation, for optimal organizational performance.
50
CHAPTER FIVE
5.0 DISCUSSION, CONCLUSION, AND RECOMMENDATION
5.1 Introduction
This section of the study is the conclusion of the results and findings. It provides the
summary, and discussions that compare the findings to existing literature. It also offers
conclusions and recommendations that were based on the study findings. It ends with
recommendations that future scholars can pursue.
This study used explanatory research design. The population of the study comprised of all
the four- and five-star hotels in Nairobi County registered under the TRA and were 15 in
number. The study selected five (5) managers from each establishment to comprise a
population of 75 respondents. The sampling frame for this study was made up of the
official list of four- and five-star hotels within Nairobi County, and was obtained from the
TRA. This study made use of the census sampling technique; thus, the sample size was 75
respondents. Data was acquired using structured self-administered questionnaires.
Descriptive - statistics were analyzed using graphs, pie charts, frequency Tables and other
measures of Central Tendency. Inferential statistics were analyzed using correlation and
regression. Further, regression was used to predict the actual values by which the
independent variables influenced the dependent variable.
The results for outcome orientation and organizational performance, the study showed
that, outcome orientation was significant to organizational performance (r=0.706,
p<0.05). Regressions confirmed that 49.9% of the change in organizational performance
51
within the four- and five-star hotels could be attributed to outcome orientation, and a unit
increase of outcome orientation is predicted to result in a 0.578-point increase in
organizational performance. The study affirmed that four- and five-star hotels’ business
units emphasize action and results i.e. have high expectations for performance, and their
employees exert maximum effort into their work. These hotel employees are trained and
mentored to sell the company’s products and services effectively, and management relies
on its common vision to trigger employees’ personal energy in the pursuit of the hotels’
goals. The hotel’s systems are altered when its mission changes, and they sustain the high
energy and involvement of their employees. The hotel employees relied on the common
mission to organize their work, and the hotel’s leadership had generated greater cohesion
within employee groups. The hotels placed emphasis on rewarding intangible elements of
performance as well as observable metrics, and their evaluation systems rewarded
employee behavior as compared to absolute standards.
The results for team orientation and organizational performance, the study showed that,
team orientation was significant to organizational performance (r=0.864, p<0.05).
Regressions confirmed that 74.6% of the change in organizational performance within the
four- and five-star hotels could be attributed to team orientation, and a unit increase of
team orientation is predicted to result in a 0.686-point increase in organizational
performance. The study revealed that the hotel employees stress collaboration and
cooperation in performing their activities and making decisions, and management
facilitate team orientation through the creation and enhancement of a sense of belonging
and oneness among the employees. The hotel employees feel as part and parcel of the
organization, and team work is a prerequisite for the successful performance of the hotels.
The manager’s role in the hotels is to manage teams and facilitate employee learning and
development, and the community culture of the hotel has increased the employees’
propensity to cooperate in team settings. Teamwork orientation among employees has
facilitated their personal learning, although, it has also made it difficult to notice
employees who work harder than others. The self-fulfillment needs of employees had
created an identity for them through their work engagement, which was highly influenced
by the supervisors’ rating of their job performance.
52
For client orientation and organizational performance, the study showed that, client
orientation was significant to organizational performance (r=0.773, p<0.05). Regressions
confirmed that 59.7% of the change in organizational performance within the four- and
five-star hotels could be attributed to client orientation, and a unit increase of client
orientation is predicted to result in a 0.604-point increase in organizational performance.
The study showed that client orientation is strategy that the hotels used to be recognized
and stand out from the rest, and it had enhanced the hotels’ understanding in designing
new or improved services to meet its customers’ needs. Client orientation effectiveness in
the hotels depended on the environmental conditions, and its employees understood the
management systems in terms of overall patterns. The hotels relied on the employees’
ability to develop profitable and long-lasting relationships with customers, and the
management motivated their employees through rewards and evaluation of their jobs. The
hotels had managed to make the job meaningful to employees, to the point of them
overlooking monetary rewards, but rather they identified with the hotels because of how
the hotels valued their contributions and catered to their welfare. The hotels employees
had developed rewarding interpersonal relationships with their co-workers, and thrived as
a result of cultivating a strong clientele that kept them afloat.
5.3 Discussion
5.3.1 Outcome Orientation and Organizational Performance
The hotels’ business units emphasize action and results i.e. have high expectations for
performance. The result is in agreement with Madhani (2016) who states that, outcome
orientation refers to the extent to which business units emphasize action and results, have
high expectations for performance, and are competitive. According to Alfani (2016),
outcome orientation refers to how an organization puts emphasis on the end results, and
thus, organizations which have high expectations for performance and are competitive
usually deliver high results. The employees exert maximum effort into their work. This
result is supported by Alfani (2016) who notes that, once there are high expectations,
employees feel more committed in organizations which focus on pragmatic values where
the outcomes are given prominence than the processes, and that, in these organizations,
the employees have a perception of having to exert maximum effort into their work.
53
Hotel employees are trained and mentored to sell the company’s products and services
effectively. According to Thompson (2016), where this culture is cultivated, employees
are trained and mentored to sell the company’s product effectively and in so doing, they
learn how much money the department contributes to entire organization. The hotel relies
on its common vision to trigger employees’ personal energy in the pursuit of its goals.
This result is in tandem with Tandon et al. (2018) who opines that, the task culture relies
on the organization’s common vision or purpose by adapting to the organization’s
mission to attract and trigger employees’ personal energy in the pursuit of common goals,
where the organization’s mission is used to focus the personal energy of the
organization’s employees.
The hotel’s systems are altered when its mission changes. This result agrees with Harish
(2016) who notes that, systems and structures are necessary in an achievement-oriented
organization, and are in place to serve the organization’s mission, but, these systems and
structures are more likely to be altered when alterations in the mission occur, and are
therefore more flexible than the rules of law of the role orientation. The hotel sustains the
high energy and involvement of its employees. This study result disagrees with
Thompson (2016) who notes that, the high energy and involvement of employees within
this culture type is often difficult to sustain because employees may be subject to burnout
and disillusionment when results are not achieved. But according to Nohria (2017), this
culture can be sustained by reinforcing the behaviors of employees as they act out the
cultural values and implement the organization’s strategies.
The hotel employees rely on the common mission to organize their work. This result is in
tandem with Dasanayake and Mahakalanda (2016) who state that, the achievement
orientation also has a disadvantage in the fact that these organizations are often not well
organized because employees lack the necessary time for objective planning, and they
may rely on the common mission to organize their work. The hotel’s leadership has
generated greater cohesion within employee groups. According to Alfani (2016), there
exists mixed conclusions from studies that try to determine the effects of task-oriented
and relationship-oriented leadership, however, a common finding is that relationship-
oriented leadership will generate greater cohesion within groups, as well as greater team
learning.
54
Rewarding intangible elements of performance as well as observable metrics are
emphasized on hospitality industry. This result is supported by Madhani (2016) He notes
that, one relevant element of the reward system is if whether the organization rewards
behaviors or results. Various industries have reward systems that put emphasis both on
the intangible elements of performance and observable metrics. In these companies,
supervisors and peers may evaluate an employee’s performance by assessing the person’s
behaviors as well as the results.
The hotel facilitates team orientation through the creation and enhancement of a sense of
belonging and oneness among the employees. This agrees with Malik (2016) who
reported that, team orientation is enhanced through the creation and enhancement of a
sense of belonging and oneness in the employees working in an organization. Muqadas et
al. (2017) observed that, cooperation, individual recognition, good relationship between
management and employees, cultivation of a democratic, open culture and welcoming of
ideas from employees constitutes what encourages team orientation in an organization.
55
The hotel employees feel as part and parcel of the organization. This result is in
agreement with Malik (2016) who states that, in a hotel setting, it is often encouraged that
the employees feel part and parcel of the organization, and in turn, this translates to
effectiveness in discharging their respective roles. Humashu (2019) states that, team work
occupies a cardinal role in the hotel industry because the group ends up delivering the
goal of the hotel through the shared principles and values. Team work is a prerequisite for
the successful performance of the hotel. This agrees with Fransen (2016) who defines
team work, as the extent to which members have a positive attitude towards working in a
team, and this is a prerequisite for successful organizational performance. Thus, culture
acts as a pointer towards personal willingness to collaborate and cooperate with others in
the organization.
The manager’s role in the hotel is to manage teams and facilitate employee learning and
development. A study by Mushtaq (2017) gives findings which offer implications for
managing teams and facilitating employee learning and development in organizations.
Not only does it provide initial evidence on the contingent effect of power distance but
also uncertainty avoidance in the collectivism-teamwork orientation relationship. The
community culture of the hotel has increased the employees’ propensity to cooperate in
team settings. According to Gruman and Saks (2017), collective value has been identified
as a factor that increases individual propensity to cooperate in team settings, in
accordance to the discussion of the factors that influence extent to which individuals are
team oriented.
Personal learning has been supported by teamwork orientation by the employees. This
result agrees with Assaf and Cvelbar (2017) whose study reported an association between
preference to work in team settings and personal learning. However, the current evidence
that supports the influence of teamwork orientation on personal learning is still too
limited to corroborate such a relationship. Williams and Castro (2017) in their recent
study reported that the influence of team orientation on personal learning tends to depend
on the team environment. Team work in the hotel had made it difficult to notice
employees who work harder than others. This study agrees with Thompson (2016) who
states that, too much emphasis on team orientation fails to appreciate and enhance
individual effort. If all emphasis is channeled towards enhancing team work, then it can
56
be very difficult to notice those who work harder than the rest. According to Williams and
Castro (2017), team orientation also minimizes accountability as employees who will tend
to hide behind the group and cultivate a tendency of passing the back.
The self-fulfillment needs of employees have created an identity for them through their
work engagement. This result agrees with Maslow et al. (1970) who provided the
conceptual model of human needs, and these needs identify the concept and base for
employee engagement, and as such, a need of self-fulfillment, emotional satisfaction, and
to become everything one is capable of becoming creates identity for the employees
through their work engagement. Employees’ work engagement in the hotel is extremely
influenced by the supervisors’ rating of their job performance. This study result agrees
with Pech and Slade (2016) who observed that, individuals work engagement is
extremely correlated with supervisor’s rating of job performance. Demerouti et al. (2018)
states that, work engagement has an influence on how the employees work and
accomplish tasks since it is valuable not only to the workers but also the organization.
Client orientation focus has enhanced the hotel’s understanding in designing new or
improved services to meet its customers’ needs. According to Grissemann et al. (2017),
focus on client orientation enhances hotel’s understanding and aid in designing new or
improved services to meet customer needs and thus enhance managerial and financial
performance. Christian et al. (2018) avers that hospitality industries have made empathy
and care an integral part of great customer service.
57
Client orientation effectiveness in the hotel depends on the environmental conditions.
This result is supported by Gruman and Saks (2017) who note that, the effectiveness of
client orientation also depends upon environmental conditions. In markets with low
demand uncertainty, in particular, client orientation fails to enhance innovation
performance. Furthermore, client orientation literature is developing toward a perspective
of firms as complex systems of interdependent characteristics and choices in which
competitive advantage frequently does not rest on a single attribute but, instead, resides in
the relationships and complementarities between multiple characteristics.
Hotel employees understand the management system in terms of overall patterns. This is
supported by the study conducted by Muqadas et al. (2017) which showed that, the notion
of organizational configurations expresses this idea by suggesting that organizational
structures and management systems are best understood in terms of overall patterns rather
than in terms of analyses of narrowly drawn sets of organizational properties. The hotel
relies on the employees’ ability to develop profitable and long-lasting relationships with
customers. this result agrees with Tandon et al. (2018) who observed that, in the modern
financial services sector which is highly competitive has a tendency of offering
homogenous solutions, firms heavily bank on the salesperson’s ability to develop
profitable and long-lasting relationships with their customers. Client orientation was
found to have a significant impact on their ability to achieve profitability for the firms.
The hotel motivates its employees through rewards and evaluation of their jobs. This
result is supported by Christian et al. (2018) who note that, motivation to expend efforts
is created through rewards and the salesperson’s evaluation of the job and its outcomes
are the key to engage in customer-oriented selling. Their study developed a model
incorporating three critical job-related constructs - experienced meaningfulness,
organizational identification, and pay satisfaction – to understand its influence on
salespeople’s performance, and mapping their client orientation.
The hotel has managed to make the job meaningful to employees, to the point of them
overlooking monetary rewards. The result agrees with Lee and Huang (2014) who noted
that when an organization acquires the ability to make the job meaningful and motivates
its salespeople to identify with the organization by aligning organizational goals with
58
individual goals, it is possible that the employees tend to overlook the influence of
monetary rewards. The hotel employees identify with the hotel because of how the hotel
values their contributions and caters to their welfare. This result is in agreement with
Bolboli and Reiche (2016) who observed that, indications from the job characteristics
model and research efforts conducted in this line explain that experienced meaningfulness
of the job is an important influence on workplace behavior and performance; and that,
when employees feel that their organizations value their contributions and cater to their
welfare, it has a positive influence on the employees’ organizational identification.
The hotel employees have developed rewarding interpersonal relationships with their co-
workers. The study agrees with Erdorf et al. (2016) who observed that, employees are
likely to perceive greater meaning in their life if they are able to develop rewarding
interpersonal relationships with their co-workers. Luthans (2017) study established that,
employees are able to impart greater meaning for the work they do when they are treated
with dignity and respect and when they find themselves to be useful and valuable to the
firm. The hotel thrives as a result of cultivating a strong clientele that keeps them afloat.
This result is supported by Nohria (2017) who notes that, hotels that thrive do so base on
the fact that they have and must cultivate a strong clientele that will keep them afloat. He
further argues that a good strategy that puts clients before anything is the surest way of
succeeding and having a competitive advantage over the rest.
5.4 Conclusion
5.3.1 Outcome Orientation and Organizational Performance
The study concludes that four- and five-star hotels’ business units emphasize action and
results i.e. have high expectations for performance, and their employees exert maximum
effort into their work. These hotel employees are trained and mentored to sell the
company’s products and services effectively, and management relies on its common
vision to trigger employees’ personal energy in the pursuit of the hotels’ goals. The
hotel’s systems are altered when its mission changes, and they sustain the high energy
and involvement of their employees. The hotel employees relied on the common mission
to organize their work, and the hotel’s leadership had generated greater cohesion within
employee groups.
59
5.3.2 Team Orientation and Organizational Performance
The study concludes that the hotel employees stress collaboration and cooperation in
performing their activities and making decisions, and management facilitate team
orientation through the creation and enhancement of a sense of belonging and oneness
among the employees. The hotel employees feel as part and parcel of the organization,
and team work is a prerequisite for the successful performance of the hotels. The
manager’s role in the hotels is to manage teams and facilitate employee learning and
development, and the community culture of the hotel has increased the employees’
propensity to cooperate in team settings.
5.5 Recommendations
5.5.1 Recommendations for Improvement
5.5.1.1 Outcome Orientation and Organizational Performance
The study recommends that the managers of these four- and five-star hotels need to
provide employees with proper objectives, in order to minimize their reliance on the
common mission to organize their work. This would provide employees with the
necessary time to objectively plan their work, hence increase their performance.
60
individual effort, as well as, mitigate the inability of the firm to notice employees who
work harder than their peers.
61
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APPENDICES
APPENDIX I: LIST OF FOUR- AND FIVE-STAR HOTELS
67
APPENDIX II: IRB APPROVAL
68
APPENDIX III: COVER LETTER
Yours Sincerely,
69
APPENDIX IV: QUESTIONNAIRE
This questionnaire has been formulated with the primary objective of examining the
influence of organizational culture on performance of the Kenyan hotel industry. Its
primary focus is the four- and five-star international chain hotels in Nairobi county.
Please note that the information being collected here is for academic purposes only, and
as such, shall be treated with utmost confidentiality. Your participation and assistance
will be highly appreciated.
4. Please indicate how long you have been working with the hotel.
1-5 years [ ] 6-10 years [ ] 11-15 years [ ] 16-20 years [ ]
21 years and above [ ]
6. Please indicate the number of years you have held that position with the hotel.
1-5 years [ ] 6-10 years [ ] 11-15 years [ ] 16-20 years [ ]
21 years and above [ ]
70
SECTION B: ORGANIZATIONAL CULTURE VARIABLES
This section contains questions about the organizational culture variables. The three
available parts in this section address: the influence of outcome orientation, team
orientation, and client orientation as a strategy on the performance of four- and five-star
international chain hotels.
No: SD D N A SA
Ba1 The hotel’s business units emphasize action and results [] [] [] [] []
i.e. have high expectations for performance
Ba2 The employees exert maximum effort into their work [] [] [] [] []
Ba3 Hotel employees are trained and mentored to sell the [] [] [] [] []
company’s products and services effectively
Ba4 The hotel relies on its common vision to trigger [] [] [] [] []
employees’ personal energy in the pursuit of its goals
Ba5 The hotel’s systems are altered when its mission [] [] [] [] []
changes
Ba6 The hotel sustains the high energy and involvement of [] [] [] [] []
its employees
Ba7 The hotel employees rely on the common mission to [] [] [] [] []
organize their work
Ba8 The hotel’s leadership has generated greater cohesion [] [] [] [] []
within employee groups
Ba9 The hotel places emphasis on rewarding intangible [] [] [] [] []
elements of performance as well as observable metrics
Ba10 The hotel’s evaluation systems reward employee [] [] [] [] []
behavior as compared to absolute standards
71
Part B: Team Orientation and Organizational Performance
8. Please indicate the extent to which you agree with each of the following
statements using the scale: 1=Strongly Disagree; 2-Disagree; 3=Neutral; 4=Agree;
and 5=Strongly Agree.
No: SD D N A SA
Bb1 The hotel employees stress collaboration and [] [] [] [] []
cooperation in performing their activities and making
decisions
Bb2 The hotel facilitates team orientation through the [] [] [] [] []
creation and enhancement of a sense of belonging and
oneness among the employees
Bb3 The hotel employees feel as part and parcel of the [] [] [] [] []
organization
Bb4 Team work is a prerequisite for the successful [] [] [] [] []
performance of the hotel
Bb5 The managers role in the hotel is to manage teams and [] [] [] [] []
facilitate employee learning and development
Bb6 The community culture of the hotel has increased the [] [] [] [] []
employees’ propensity to cooperate in team settings
Bb7 Teamwork orientation among employees has facilitated [] [] [] [] []
their personal learning
Bb8 Team work in the hotel had made it difficult to notice [] [] [] [] []
employees who work harder than others
Bb9 The self-fulfillment needs of employees has created an [] [] [] [] []
identity for them through their work engagement
Bb10 Employees’ work engagement in the hotel is extremely [] [] [] [] []
influenced by the supervisors’ rating of their job
performance
72
Part C: Client Orientation and Organizational Performance
9. Please indicate the extent to which you agree with each of the following
statements using the scale: 1=Strongly Disagree; 2-Disagree; 3=Neutral; 4=Agree;
and 5=Strongly Agree.
No: SD D N A SA
Bc1 Client orientation is strategy that the hotel uses to be [] [] [] [] []
recognized and stand out from the rest
Bc2 Client orientation focus has enhanced the hotel’s [] [] [] [] []
understanding in designing new or improved services to
meet its customers’ needs
Bc3 Client orientation effectiveness in the hotel depends on [] [] [] [] []
the environmental conditions
Bc4 Hotel employees understand the management system in [] [] [] [] []
terms of overall patterns
Bc5 The hotel relies on the employees’ ability to develop [] [] [] [] []
profitable and long-lasting relationships with customers
Bc6 The hotel motivates its employees through rewards and [] [] [] [] []
evaluation of their jobs
Bc7 The hotel has managed to make the job meaningful to [] [] [] [] []
employees, to the point of them overlooking monetary
rewards
Bc8 The hotel employees identify with the hotel because of [] [] [] [] []
how the hotel values their contributions and caters to
their welfare
Bc9 The hotel employees have developed rewarding [] [] [] [] []
interpersonal relationships with their co-workers
Bc10 The hotel thrives as a result of cultivating a strong [] [] [] [] []
clientele that keeps them afloat
THANK YOU
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APPENDIX V: NACOSTI RESEARCH PERMIT
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