CHALLENGES FACING THE PERFORMANCE OF SMALL HOTEL IN NOBLE

HOTEL ELDORET, UASIN GISHU COUNTY

CENTER NAME : RIFT VALLEY TECHNICAL TRAINING INSTITUTE

PRESENTER : MILLY JEPKORIR

INDEX NO. : 5341012010

COURSE CODE : 1819

COURSE NAME : CRAFT CERTIFICATE IN CATERING AND

ACCOMMODATION

PRESENTED TO : KENYA NATIONAL EXAMINATION COUNCIL IN

PARTAIL FULFILLMENT FOR THE AWARD OF CRAFT

CERTIFICATE IN CATERING AND ACCOMMODATION

SUPERVISOR : MADAM RHODA JEROP

SERIES : JULY 2023

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DECLARATION
Declaration by the candidate

I hereby declare that this project is my original work and has never been presented before for the
award of either certificate, diploma or degree in any other institution/college
NAME: MILLY JEPKORIR
DATE:………………
Sign:………………..

Declaration by the supervisor

This research project has been submitted for examination purpose with my approval as the
college supervisor
SUPERVISOR: MADAM RODAH
DATE:……………….
SIGN:………………..

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DEDICATION
This work is dedicated to the almighty God and to my family for their immerse support
throughout this course.

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ACKNOWLEDGEMENT
My profound gratitude goes to the almighty God for the guidance and help given me throughout
this course especially in hard times. I further appreciate the immerse efforts of my supervisor,
Madam Rodah without whom this work would not have materialized. Gratitude also goes to
classmate discussion group members for their inputs and directions. I also thank my parents for
the support and love they have shown towards my education and career to date. In addition,
department especially my immediate supervisor for their support. I further wish to express
appreciation for the support given to me in all ways by my family, without them this course
would have been nearly impossible. Finally, I cannot forget the contribution of the staff of the
Institute in helping me complete this course

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ABSTRACT
The study looks at the Challenges facing the performance of small hotel in Eldoret municipality.
The study was guided by the objective namely; needs of employee motivation, effect of
motivation on employee performance, and the influence of employee on motivation. The study
adopted the descriptive method and questionnaires was the main instrument for collecting data
from a sample size of 20 respondents in the hotel. The purpose of the study was to investigate
into the effects of motivation on employee’s performance. The study revealed that 21 respondent
representing 60% said that their level of motivation is low, 21 respondent representing 60%.
With regards to the effects of motivation on employee’s performance, it was discovered that 24
of the respondents representing 68.65% were willing to increase their productivity level if only
they are given extrinsic reward. In ranking among the seven selected motivational factors, high
salary was ranked as the number one with 11 representing 31.4%. The study concluded that staff
level of motivation is generally low and is evident in relation to their output of work and will
commit themselves in order to work to see the success of the business. It was therefore
recommended that motivation should be management’s topmost priority in order for employees
to deliver excellent service to its valued customers.

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Table of Contents
DECLARATION..............................................................................................................................i

DEDICATION................................................................................................................................ii

ACKNOWLEDGEMENT..............................................................................................................iii

ABSTRACT...................................................................................................................................iv

CHAPTER ONE..............................................................................................................................1

1.0 Introduction...........................................................................................................................1

1.1 Background of the study............................................................................................................1

1.2 statement of the problem...........................................................................................................2

1.2 Statement of the problem.........................................................Error! Bookmark not defined.

1.3 Objectives of the study..............................................................................................................2

1.5 Research questions.....................................................................................................................3

1.6 Significance of the study...........................................................................................................3

1.7 Scope of the study......................................................................................................................4

1.8 Limitation of the study...............................................................................................................4

1.9 Definition of Terms...................................................................................................................4

CHAPTER TWO.............................................................................................................................5

LITERATURE REVIEW................................................................................................................5

2.1 Introduction................................................................................................................................5

2.2 The working conditions of employee........................................................................................5

2.2 The professional skills of the staff.............................................................................................6

2.3 The average customer turnover rate per month.........................................................................8

2.4 Chapter Summary....................................................................................................................11

CHAPTER THREE.......................................................................................................................12

METHODOLOGY........................................................................................................................12

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3.1 Introduction..............................................................................................................................12

3.2 Design of the Study.................................................................................................................12

3.3 Target Population.....................................................................................................................12

3.4 Sampling / sample design......................................................................................................12

3.5 Data collection instruments.....................................................................................................13

3.5 Research Procedures................................................................................................................13

CHAPTER FOUR.........................................................................................................................14

DATA ANALYSIS, PRESENTATION AND DISCUSSION.....................................................14

4.1 Introduction..............................................................................................................................14

4.2 Response Rate..........................................................................................................................14

4.3 Demographic Characteristic of the Respondents.....................................................................14

4.3.1 Ages of the staff....................................................................................................................14

4.3.2 Respondents Level of Education..........................................................................................15

4.3.3 Length of service..................................................................................................................16

4.4 Analysis according to the objectives.......................................................................................17

4.4.1 The level of performance in customer employee relationship..............................................17

4.4.1.1 Communication..................................................................................................................18

4.4.1.2 Measure..............................................................................................................................19

4.4.1.3 Crisis management.............................................................................................................20

4.4.2 The effect of employee on performance...............................................................................21

4.4.2.1 Performance.......................................................................................................................21

4.4.3 The influence of employee motivation in productivity in the hotel industry.......................24

4.4.3.1 Promotion..........................................................................................................................24

4.4.3.2 Teamwork and Employee Participation.............................................................................26

CHAPTER FIVE...........................................................................................................................28

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5.0 SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION.............28

5.1 Summary of the findings.........................................................................................................28

5.2 Conclusion...............................................................................................................................29

5.3 Recommendations....................................................................................................................30

REFERENCES..............................................................................................................................31

Appendix: questionnaire................................................................................................................32

SECTION A: GENERAL INFORMATION.................................................................................32

SECTION B: To investigate the working conditions of employee in Eldoret Municipality.........34

SECTION C: To assess the professional skills of the staff in Eldoret Municipality.....................34

SECTION D: To explore the average customer turnover rate per month.....................................36

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CHAPTER ONE

1.0 Introduction
This chapter entails the background of the study, statement of the problem, objectives of the
study, research questions, significance of the study, scope of the study limitation and definitions
of terms

1.1 Background of the study

Small and medium sized hotels have been growing more and more global, especially in
developing countries where most of them are operated by local investors. According to Belisle,
(2021) lower and small hotels are owned by locals while larger sized and high class hotels are
owned and managed by foreigners. Tefler and Wall (2020) maintained that, the big hotels in
developing countries are just extensions of groups of hotels abroad. Small and medium sized
hotel operators play significant role in developing tourism industry by offering accommodation
to tourist during their holiday in an area of destination. Hotels provide the base, from which
tourists can engage in any activities at, a destination, therefore the travelling will be incomplete
in the absence or in poor development of hotel sector (Cooper et al. 2018). Beyond that, small
and medium hotel operators also generate government revenue by paying tax and create job
opportunities for people.

Hotel Industry is ever evolving, ever changing not by its nature but due to the need of an hour.
New and progressive concepts like Boutique Hotels, Green Hotels, and Healthy Hotels have
emerged in the market with time, leading to the evolution and growth of new trends in the hotel
industry. Industry has always operated in a same manner (i.e. ―it acts for adopting the changes
brought by the new introduced trends and technology), ever since the time of the first hotel of the
globe i.e. ―The Tremont‖. Industry caters to the people who are away from their home places
and are ready to pay for the price of the services provided by the hotel. Generally these
customers are treated like guests and i.e. why hotels are known to be home away from a home.
(Thukiman,(2011)

No matter how magnificently any hotel is built, its revenue flows from the number of guests
staying in the hotel’s room or utilizing any other services of hotel like its restaurants, bar,
banquets, conference halls, spa, gym, beauty salon, swimming pools etc. It is a direct customer

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based industry whose main focus is towards the customer’s satisfaction and customer retention
so as to earn their long term loyalty towards their brand. It is a big challenge for all the hotels to
retain their customers, no... ―Guests‖, as with the advent of new trends in architecture, designs
and technology and environment friendly and healthy hotels concepts, companies have been
coming up with hotels which are being built incorporating all or some of these components in a
building which is made while keeping in mind the fact that it is an investment for the future.
With each passing day competition among the hotels for their own survival is becoming fierce
and they are facing some modern day challenges in their daily operations those are directly or
indirectly related to the revenue generation through customer satisfaction, retention and loyalty.
(George N. Root 2018)

1.2 Statement of the problem

The industry has been one of the fastest growing industries in recent times with net worth
running in the billions. The trend was mostly boosted by tourism that was supported by the
economy and security. The major markets for the industry have always been in the west where
the seasonal weather made people move out into Africa at given times. This trend always turned
into good fortune for the industry. However recent events of terrorism are threatening to reverse
the gains made so far prompting hotels to look elsewhere for business. Part of the efforts also
involves improving performance in terms of internal business processes and the way they
position themselves in the market.

Performance in its fullest sense is based on the belief that everything that people do at any level
contributes to achieving the overall purpose of the organization. It is therefore concerned with
what people do (their work), how they do it (their behavior) and what they achieve (their results).
It also embraces all formal and informal aspects adopted by an organization to increase
corporate, team and individual effectiveness and to continuously develop skill knowledge and
competence. Pavlov and Bourne (2011) observe that organizational performance is delivered
through organization routines. In any organization it is the employees who carry out these
routines or the activities involved in the routines. Although support for the universal approach
exists the literature is inconsistent when considering employee management and more
specifically the identification of practices or combination of practices that constitute “best
practices” (Panayotopoulou and Papalexandris 2004). Best practices should be manifest in the

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way employees view their work (Robson, 2004) and especially in the way they view their
contributions towards improving the performance of organizations in which they work in. The
studies highlighted above have not evaluated performance in light of the contribution of the
employee and more so in the Kenyan context.

1.3 Objectives of the study

i. To identify the working conditions of employee
ii. To find out the types of customers and how they can benefit from small scale hotels
iii. To establish the employment system in eldoret

1.5 Research questions

i. What the working conditions of employee in Eldoret Municipality
ii. Are there the professional skills of the staff in Eldoret Municipality
iii. What are the average customer turnover rate per month

1.6 Significance of the study

This study covered small and medium sized hotel operators in Eldoret, Kenya. Small and
medium sized hotel operators play significant role in developing tourism industry as well as
economy of the national though they are faced with various challenges. Therefore, as noted
above in this chapter the study critically examined and revealed various challenges facing the
small and medium sized hotel operators and recommended measures which should be
implemented in order to address those challenges. This will help small and medium sized hotel
operators and owners as decision makers to understand how to deal with challenges facing their
hotels in order to achieve the expected objectives.

This study also significantly for employer to figure out the Challenges facing the performance in
hotel industry especially in five star hotels. Hotel industry provides various services to customer.
To retain existing customer, organization should enhance employee performance to provide high
quality of services. So that, employer are require to know the factors that affecting employee
performance. Furthermore, employee performance will affect to organizational development
either. It is because organizational development is based on how employee performing in the
company, if employees perform well in organizational development, organization might be good

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in development like changes of organizational culture. Thus, managers, employers and human
resource department need to take consideration on determinants towards employee performance.

Lastly, this research can hope to helps employers to understand better on employee performance.
Thus, employers concern and take consideration on employee performance be likely to lower
employee’s turnover rate and increase customer satisfaction.

1.7 Scope of the study

The study on Challenges facing the performance of small hotel in Eldoret municipality will be
carried out in Eldoret town hotels

1.8 Limitation of the study

The limitation to this study will be that the staff did not reveal all the facts about the productivity
of the hotel, fearing that such information can be used by the management to victimize them. In
addition, some staff did not have adequate knowledge on employee performance on productivity
of the hotel and therefore, gave shallow information. The time for carrying out the study will be
not adequate for a satisfactory report for its academic nature. Being a student, I will be short of
resources for carrying out the study such as financial and material support.

1.9 Definition of Terms

Employee Performance: This is the measure of output vise-a-visa the input. It shows
effectiveness and efficiency that make a payment to organizational goals and may depend upon
many factors like performance appraisals, employee motivation, employee satisfaction,
compensation, job security, organizational structure and others.

Training: These are programs that provide workers with information, new skills, or professional
development opportunities.

Employee Engagement: Employee engagement is the positive, affective psychological work-

related state of mind that leads employees to actively express and invest themselves emotionally,
cognitively, and physically in their role performance.

Job Satisfaction: The extent to which people like or dislike their jobs

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Motivation: Viewed as those psychological processes that cause the arousal, direction, and
persistence of voluntary actions that are goal directed

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction
Literature review is a procedure of gathering the significant information from various sources
such as article, newspaper, journals, internet, books and others. In this research article all
information acquired with the help of secondary data.

2.2 The working conditions of employee

Performance can be affected by such organization’s social environment as coworker interactions.
If employees interact with peers or colleagues who are supportive, they fell comfortable, which
positively influences their performance. According to Basar (2011), employees have preference
for work when working with working condition who are not only co-operative and supporting,
but also friendly. (Başar, 2011). Ajayi and Abimbola (2013) assert that employees who develop
and maintain cordial relationships with their coworkers stand higher chances of achieving work
performance that the employees who do not.

Findings of other studies have supported the link between task-oriented relation with coworkers
and performance. Sunaryo (2012) examined the influence of job facets such as job
characteristics, rewards, relationship with superiors, relation with coworkers, and fulfillment of
higher order needs on performance of Indonesian construction workers (N = 56). This
correlational study indicated that the task-related relation with coworkers influenced construction
workers’ performance. Whereas permanent workers favored assistance as a form of coworker
relationship, temporary employees valued cooperative behaviors. These findings indicate that
employees value supportive coworkers in task performance.

Good working relationships with colleagues can engender a healthy working environment that
enhances personal satisfaction. Moor (2013) studied the effect of nurse-to-nurse relationship on
work environment of registered nurses in southwestern Ohio (N = 82). The study was a mixed
method design. The result indicated that to poor relationship among working condition, a
considerable number of sampled nurses contemplated making an exit from the professions. They
cited the critical importance of supportive interpersonal behaviors among staff on personal

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satisfaction of nurses. The study is a useful foundation to examine a larger sample of workers in
other professions, locations, industries, and countries.

Findings of other studies have supported the link between task-oriented relation with working
condition and performance. Marzuki, Permadi, and Sunaryo (2012) examined the influence of
job facets such as job characteristics, rewards, relationship with superiors, relation with working
condition, and fulfillment of higher order needs on performance of Indonesian construction
workers.

This correlational study indicated that the task-related relation with working condition influenced
construction workers’ performance. Whereas permanent workers favored assistance as a form of
coworker relationship, temporary employees valued cooperative behaviors. These findings
indicate that employees value supportive working condition in task performance. Good working
relationships with colleagues can engender a healthy working environment that enhances
personal performance.

2.2 The professional skills of the staff

An employee skill set creates an understanding of work duties and how to effectively perform
daily job tasks. When an employee has an adequate skill set, she is better equipped to plan each
day's activities so that she can reach her production goals. The employee works with her manager
to make sure that the employee has the proper skills to execute daily work plans. The manager
helps to develop employee development programs to maintain the skill set needed to reach
corporate goals. (George N. Root 2018)

The comprehension of work duties is tied directly to the employee's skill set. if the employee has
the proper skills in place, then he is able to understand his job and what is expected of him.
Employee production drops when there is a gap between what the employee needs to know and
his existing skill set. Employee training can help to improve comprehension by filling in the
skills that are missing.

An effective employee needs to have a broad skill set that includes an understanding of corporate
safety procedures. The employee also needs to have a comprehensive understanding of the safety
guidelines for her individual job as well. An incomplete skill set that does not include safety

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training makes job performance potentially dangerous. Without the proper safety skills, the
employee could injure herself and others.

Ambitious employees are constantly looking to improve their skill set so that they may advance
within the company. A proactive employee develops an advanced skill set that allows him to
become proficient in his current job while attempting to move into a better-paying position.
When employees actively seek a more-advanced skill set to move up in the company, the
organization benefits through higher productivity and the ability to save on human resources
expenses by promoting from within. (George N. Root 2018)

Thukiman,(2011) explored that one of the most vital perspective in the modern hotel industry is
employees‟ associate with new strategies and procedures of hotel management over and done
with training. There are two processes of training formal as well as an informal, which is done
for enhancing the employee’s performance. Consequently, the execution of an effective training
process at all levels of organization significantly effects on the performance of the employees.

Offering regular training and executive development programs to bring up to date the employees
with the invention in the industry is advantageous to the employees as it satisfied them, make
them learn new skills and improve their productivity. Employees require to be upgraded with
latest front office software, equipment’s of housekeeping, cooking equipment’s and methodology
etc.to persist in this competitive situation. So the organizations which give learning and
development platform will probably improve the performance of employees.

Anil Kumar et al (2012) concludes that power can empower the transfer of control with
appropriate training and changing the entire company into an empowerment model. It might give
a specific level of authority to definite trusted employees so that the employees have the
capability to create their particular decision making in order to complete the undertaking. It
implies that the selected employees have adequate liberty to implement any techniques or ideas
which he or she consider powerful in carrying out a given task. Michal, (2011) highlighted that
employee empowerment has established and recognized as a well-known managerial concept,
various studies and researches had justified that empowerment has the potential to offer
advantages like improving organizational performance, stronger task obligation, higher levels of
creativity in carrying out role responsibilities, more advancement and learning, higher
employment satisfaction and reinforced the organization culture.

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Manzoor, S. R., Ullah, H., Hussain, M., & Ahmad, Z. M. (2011), defined teamwork as the
association between groups of people who have certain level of knowledge, competency and
capability to accomplish tasks together, in the mean time they also are accountable for the results
also. Normally, teamwork is established through three major phrases, which are team inputs,
team processes, and team outputs. By building up teamwork, employees will have greater chance
to search new and inventive ideas as an outcome from the collaboration between co-workers
(Kakayi S., 2012). Team inclines to come up with more exclusive and broader ideas than
perform those tasks by individual. It tends to encourage development (Khalid, 2008).

Muogobo (2013) has been observed throughout the years to be one of the strategies the
organization can implement to enhance their workers performance and in that way enhance the
organizations productivity. Additionally, with the present worldwide economic trend, most
employers of labor have understood the way that for their organizations to contend positively,
the enactment of their employees goes far in determining the success and growth of the
organization. Muogobo (2013) justifies that good remuneration or rather salaries that is paid at
the accurate time has been observed throughout the years to be one of the strategies the
organization can implement to enhance their employees performance and in that way enhance
the organizations productivity.

2.3 The average customer turnover rate per month

According to Homer (2007) states that staff turnover is costly and disruptive. It reduces the
outputs and is disruptive as it requires the schedules and programmes to be modified. It
causes the organization to lose a lot of money because they have to employ other staff to
come and help. There are a number of reasons that contributes to the rate of turnover in
companies and they vary. They both stem from the company the employees. Turnover is a
very expensive aspect to companies, the reason the employers gives it importance (Oregon,
2004).

According to Namhoon (2009), Employers incur considerable direct and indirect expenses
when employees leave the company. Among other costs, they include, advertisement,
headhunting fees, resource management expenses, time and efficiency and cost of training
and development. The company needs to frequently examine the costs of turnover and create

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mitigation. If the company determines the most common causes of employee turnover, it
would certainly be able to take the necessary steps for recruiting and retaining well-qualified
personnel.

According to Miller (2006) employee efficiency is an outcome of the employee's knowledge,

capability, motivation, workplace environment, etc. Generally, efficiency is defined as
"output gained from the fixed amount of inputs". Likewise, employee efficiency is the output
gained by the inputs of the employee, with a goal to bring out profit to the company and to
the employee himself. Enhancing an employee's efficiency is not only dependent on the
inputs of the employee, but also by the aid provided by the organization and the nature of
workplace environment.

According to Catano, Darr & Campbell, (2007) measuring employee efficiency is to calculate
an employee's qualitative and quantitative work, it can be calculated on a monthly basis,
yearly basis or by daily assessment. Before measuring an employee's efficiency, it is
necessary to determine what are outputs to be measured (Cascio, 2003). According to Duncan
(2008) if an employer expects too much output from the employees, they will find shortcuts
to achieve the expected benchmark and as a result, quality will suffer. Conversely, if less
efficiency is expected, the company's overall performance will decline because of inefficient
use of available resources (Buttrick,2009).If a manager wants to measure employee's
efficiency in the organization, he needs to know how to use certain basic software tools such
as bar graph, pie chart, spreadsheet (Horton, 2007).

Blashka( 2007) contended that efficiency is linked to employee morale. When employees are
happy at work they have more motivation, which increases efficiency. Poor morale causes
employees to be disengaged. A study done by the Corporate Executive Board says that
because employee engagement is down there has been a 5% decrease in efficiency. If
employees are not given the proper resources to do their jobs easily and efficiently, their
efficiency will suffer. QuoStar Solutions, a technology consulting service, states that
innovative technology is one way that employers can boost efficiency. Having automated,
electronic processes for certain tasks can free up employee time so that they can maximize

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their efficiency with other tasks. There are ways to tackle low efficiency. According to Tech
Republic, efficiency can be combated by installing monitoring software that tracks what
employees do all day long. This will eliminate wasted employee hours spent surfing the
Internet or talking to friends over email and instant messaging (Blahna, 2005).

As the labor market continues to tighten, employers are increasingly concerned about
maintaining a stable workforce. They need competent, dedicated, and effective workers to
serve their customers to fulfill their missions. Without a sufficient qualified and productive
workforce, employers are vulnerable to competitive forces as well as the impact of negative
relationships with their customers. It is frustratingly difficult to find, recruit, and hire the
caliber of employees that companies desire today (Gupta, 2008).

Stability in a company's workforce has a number of advantages for the company's health, for
workers, for customers, for suppliers, for investors, for the industry, and for the economy at
large. If the workforce is stable, management can invest its energy in moving the company
forward. Leaders are not distracted by the need to continually hire new (replacement)
employees, so they can concentrate on product/service development, marketing, quality and
process improvement, and investment of surplus funds. They aren't required to staff their
human resources department to feed "the revolving door. Stable workforce employers have a
greater potential of strong profits (Edwin, 2005).

Dempsey (2003) asserts that staff turnover may have devastating effects on service rendered
by the organization and these may bring deficits in meeting customer demand. This leads to
customer irritation and increase in complaints. Dubois (2004) states that organizations that
create work environments that attracts, motivate and retain hard working individuals will be
better positioned to succeed in a competitive environment that demands quality and cost
efficiency. Edwin, (2005) also agree that it is critical to understand that interdependent
relationship exists between employee satisfaction and customer satisfaction and that the
organization needs to focus on both these components.

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2.4 Chapter Summary
This chapter discussed the literature review of the research study, literature review provided
the study with an explanation of the theoretical rationale of the problem being studied as well
as what research has already been done and how the findings relate to the problem at hand.
The literature was reviewed from, journals, published books and internet.

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CHAPTER THREE

METHODOLOGY

3.1 Introduction
This chapter gives the methodology employed to carry out the study and includes: the design of
the study; target population, sampling size and technique, research instruments; and data
analysis.

3.2 Design of the Study

Research design refers to the plan and effectiveness of the investigation used to obtain evidence
to answer research objectives (Macmillan & Schumacher, 1998), The researcher used a
descriptive survey where independent variable was looked into in order to study their
independent and interactive Importance on the dependent variables. A case study on the
challenges facing performance of hotel industry. The case study involved in-depth investigation
of group that enables the researcher to answer the research questions comprehensively.

3.2 research site

Research site refers to specific place or area where the research is done. In this case the research
sit is in four five star hotels in or around Eldoret municipality

3.3 Target Population

The target population comprised of the employees who work at The Pearl Hotel Eldoret. The
target population was selected based on their knowledge of employee motivation. The population
was from Chef, staffs, and all workers in general hotel. This target population will have the
characteristic the researcher is interested in. The population for the study consisted of 30
employees of the Noble Hotel.

3.4 Sampling / sample design

According to the Mugenda, (1999) defines sampling as the process of selecting a number of
individuals for a study in such a way that the individuals selected represent the larger group from
which it was selected. The study employed random sampling and purposive sampling technique,
purposive sampling allows the researcher to use respondent that have required information with
respect to the goal of this study. By use of random sampling was due to time and financial
constraints encountered while conducting the exercise.

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3.4.1 Sample size

From the target population, a sample size of 30 employees was selected using stratified random
technique. This represents 30% of the total population. The advantage with this technique is that
it ensures that each sub-group is proportionally represented. The 30% percentage was obtained
from various sub-groups/ department i.e Kitchen, service, managerial and accounts

3.5 Data collection instruments

The study adapted the use of questionnaires as the main instruments of data collection. The
adoption of these instruments for convenience purposes.

3.6.1 Questionnaires

Questionnaires was used to collect the primary data. The questionnaire was prepared by the
researcher and distributed to the employees personally after pre-tested. They were used because
they were easily administered. The researcher ensured that the questions were simple to answer,
avoided personal and direct questions were free from biasness. This enabled respondents to
exhaust all the factors about the study. This was considered important because; It gave the
respondent freedom of expression, it was economical, the response rate will be high and the
presence of the researcher was not necessary.

3.5 Research Procedures

The questionnaire was pre-tested before the final distribution. Cooper and Schindler (2001) note
that this is usually done to detect any weaknesses in the research design. The pre testing (pilot
testing) was done with the aim of refining and fine tuning the questionnaire so as to ensure that it
was valid and reliable. The questionnaire was then be self -administered in hard copy form to
each of the respondents and picked up later after a day to increase the response rate.

3.8 Data analysis

Being a descriptive study, data was analyzed both qualitatively and quantitatively. This means
that the collected data was coded, sorted and edited for validation. The statistics were then
presented on tables, graphs and pie-charts for easy tabulation of research findings.

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CHAPTER FOUR

DATA ANALYSIS, PRESENTATION AND DISCUSSION

4.1 Introduction
This chapter presents the research findings of the study carried out to establish employees
perception of effectiveness of employee performance on productivity in the hotel industry in The
Eldoret town Hotel. The study aimed at determining the influence of factors in motivation of
employees.

4.2 Response Rate

The study targeted a total of 20 employees in The Eldoret town Hotel. Out of the 20
questionnaires that were distributed to the respondents, all were returned duly completed. This
contributed to 100% response rate. This response rate was adequate for data analysis and
conforms to Mugenda and Mugenda (2003) stipulation that a response rate of 70% and over is
excellent.

4.3 Demographic Characteristic of the Respondents

This section presents demographic information of the respondents. The information presented
here includes education level of the respondents and the duration of service in the work place.

4.3.1 Ages of the staff

Data on the ages of the respondents are shown in the Table 4.1 below. It can be observed that 7
of them representing 31.4% fell within the ages of 20-30, 9 fell within the ages of 31- 40
representing 48.6%, 3 fell within the ages of 41-50 representing 14.3% and 1 within the ages of
51- 60 representing 5.7%. This is illustrated in the table below Table 4.1.
Table 4.1 Ages of the staff

Ages Frequency Percentage

20-30 7 31.4%

31-40 9 48.6%

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 41-50 3 14.3%

51-60 1 5.7%

Total 20 100%

age of the staff

51-60
6%
41-50
14% 21-30
31%

31-40
49%

Pie chart 4.3.1

4.3.2 Respondents Level of Education

The study required that the respondents indicate their highest level of education qualification.
This is because, the level of education impacted on the respondents’ ability to respond to
questions put through by the study as it determines their level of understanding the subject
matter of the study.

Table 4.3.2: Highest level of education

Frequency Percentage
Secondary Level 1 3.4
Certificate/Diploma Level 7 33.3
Degree level 8 42.5
Postgraduate Level 4 20.7

16
Total 20 100

According to Table 4.1, most of the respondents (42.5%) were university degree holders and
33.3% had certificate/diploma as their highest level of education qualification. Further, 20.7%
had postgraduate qualification while 3.4% had secondary school education as their highest level
of education qualification. This depicts that Employees at The Eldoret town Hotel have high
level of education. This implies that the respondents were in a position to give reliable
information as sought by the study owing to the high levels of education qualification.

4.3.3 Length of service

The study also sought to establish from the respondents the duration of time they had served in
the organization. Duration of service in an organization determines the respondents’ level of
understanding of internal information pertinent to the organization. Figure 4.1 below presents the
findings.

Figure 4.1: Length of service

The figure 4.1 indicates that most of the respondents, 39% had worked with The Eldoret town
Hotel for a period between 1 and 3 years, 29% had worked there for a period between 3 and 5
years and 17% had worked in the Hotels for a period less than one year. Further, 11% had
worked in the Hotels for a period between 5 and 7 years while only 4% had worked in The
Eldoret town Hotel for more than 7 years. The results depicts a relatively high level of labour
turnover among the Employees which could be as a result of low levels of motivation among the

17
said employees; this is shown by the high numbers of respondents who had 3 years and less in
the organization. This also shows that the respondents to that study were well conversant with
the information sought by the study owing to the fact that majority of them had worked in the
Hotels for more than a year and therefore were in a position to give relevant information as
sought by the study.

4.4 Analysis according to the objectives

4.4.1 The working conditions of employee in the hotel industry

The table below shows the level of performance on customer employee relationship in the hotel
industry

Promotion of employees’ rights

disagree
7%

agree
20%

strongly agree
60%
neutral
13%

strongly agree neutral agree disagree strongly disagree

Pie chart; 4.4.1

The supplies are available whenever I need them

18
 strongly disagree
7%
dis- strongly agree
agre 20%
e
7%

neutral
13%

agree
53%

strongly agree neutral agree disagree strongly disagree

Pie chart 4.4.1

The supplies are of the of good quality

Frequency Percentage

Strongly agree 7 46%

Agree 3 20%

Disagree 1 6.6%

Strongly disagree 0 0%

Neural 4 26.6%

Total 15 100%

4.4.1.1 Communication
We always communicate with my boss on most of the information I need in doing my job

19
 Frequency Percentage

Strongly agree 8 53%

Agree 5 33%

Disagree 1 6.6%

Strongly disagree 0 0%

Neural 1 6.6%

Total 15 100%

Bar graph : 4.4.1.1

4.4.1.2 Measure
Any new developments that may affect my daily routine are brought to my attention immediately

Frequency Percentage

Strongly agree 5 33%

Agree 6 40%

Disagree 1 6.6%

Strongly disagree 1 6.6%

Neural 2 13.3%

Total 15 100%

Pie chart 4.4.1.2

My boss allows me to brief him on the progress attained by word of mouth

20
 Frequency Percentage

Strongly agree 3 20%

Agree 3 20%

Disagree 2 13.3%

Strongly disagree 6 40%

Neural 1 6.6%

Total 15 100%

strongly agree; 0.2; 20%

stron
gly
dis- strongly agree
agree neutral
neutral, 7%
,40% agree
disagree
strongly disagree

agree,, 20%

disagree; 0.135; 13%

4.4.1.3 Crisis management

Whenever there is a problem my boss comes in to find out what has happened

Frequency Percentage

Strongly agree 8 53%

21
 Agree 5 33%

Disagree 0 0%

Strongly disagree 0 0%

Neural 2 13.3%

Total 15 100%

My boss allows us to seek our way out of the problems before providing his view

Table: 4.4.1.3

Frequency Percentage

Strongly agree 8 53%

Agree 4 26%

Disagree 1 6.6%

Strongly disagree 0 0%

Neural 2 13.3%

Total 15 100%

22
 60%

50%

40%

30%
Sales
strongly agree; 53%

20%

agree,, 100%
10%
neutral, 100%
disagree; 7%
0%
strongly agree neutral agree disagree strongly disagree

strongly disagree,0%

4.4.2 The professional skills of the staff

4.4.2.1 Performance
I am able to finish my work on time

Frequency Percentage

Strongly agree 2 13.3%

Agree 9 60

Disagree 2 13.3

Strongly disagree 1 6.6

Neural 1 6.6

Total 15 100%

23
Pie chart 4.4.2.1

I rarely have to repeat a task because it was not done properly

Frequency Percentage

Strongly agree 3 20%

Agree 8 53%

Disagree 2 13.3%

Strongly disagree 0 0%

Neural 1 6.6%

Total 15 100%

60%
agree, 100%
50%

40%

30%

strongly agree; 20%

20%

disagree,, 100%
10%

0%
strongly disagree; 0%
strongly agree
agree
disagree
strongly neutral,100%
disagree neutral

Sales

Customers have never raised a complaint about my service

24
Table: 4.4.2.1

Frequency Percentage

Strongly agree 0 0

Agree 2 13.3

Disagree 2 13.3

Strongly disagree 9 60

Neural 1 6.6

Total 15 100%

I am able to provide necessary information that would assist others to complete their tasks

Frequency Percentage

Strongly agree 5 33

Agree 3 20

Disagree 2 13.3

Strongly disagree 4 26.6

Neural 1 6.6

Total 15 100%

25
 strongly agree; 33%
strongly disagree; 27% neutral,7%
strongly agree
agree
disagree
strongly disagree
neutral
agree, 20%

dis-
agree,,
13%

Pie chart 4.4.2.1

4.4.3 The explore on the average customer turnover rate per month

4.4.3.1 The level of customer turnover in the organization

Table 4.4.3.1

Frequency Percentage

Strongly agree 7 46

Agree 5 33

Disagree 0 0

Strongly disagree 0 0

Neutral 3 20

Total 15 100%

26
The table above showed that majority of the respondents strongly agreed that level of customer
turnover is higher with 46%, 33% agreed and 20% neutral

The organization experience cases of customer turnover

Frequency Percentage

Strongly agree 8 55.7

Agree 5 33

Disagree 0 0

Strongly disagree 0 0

Neural 2 13.3

Total 15 100%

60%
strongly agree; 56%

50%

40%

agree, 100%

30%
Sales

20%

10%

neutral,100%
disagree,, 0% strongly disagree; 0%
0%
strongly agree agree disagree strongly disagree neutral

27
Lack of Training and Development

Frequency Percentage

Strongly agree 9 60

Agree 4 26.7

Disagree 0 0

Strongly disagree 0 0

Neural 2 13.3

Total 15 100%

4.4.3.2 Career Development

The organization encourages career development as a way of motivating the employees

28
 strongly agree agree disagree strongly disagree neutral

neutral,13%

strongly agree; 0.4; 40%

strongly disagree; 0.28; 28%

disagree,, 7%
agree, 13%

Pie chart 4.3.2.2

Incentives and wages

Table 4.3.2.2

Frequency Percentage

Strongly agree 7 46

Agree 4 26.6

Disagree 1 6.6

Strongly disagree 0 0

Neural 3 20.8

29
 Total 15 100%

The table above indicates that 80% of the respondent’s incentives and good wages increases
employee’s morale as their hard work is rewarded. Majority of the respondents strongly agreed
that training motivates employees as it ensures that employees perform their jobs with ease as
illustrated by a percentage of 55% and that training ensures highly skilled employees with
increased self-esteem, commitment and motivation as illustrated by a percentage of 4.2222.
Further, the respondents indicated that training improve communication between peers and thus
acts a motivation tool as illustrated by a percentage of 63%; training motivates employees and
thereby increases staff involvement in the organization as illustrated by a percentage of 49 and
that staff training is an important contributor to individual and group motivation as illustrated by
a percentage of
48. The findings depicts that training and development is an effective motivation practice for
Employees as it helps the employee perform their duties with ease, improve their communication
and increases their self-esteem and commitment. Further, the study has highlighted that training
improve communication between peers and therefore, staff training is an important contributor to
individual and group motivation.

CHAPTER FIVE

5.0 SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Summary of the findings

Findings indicated that employees perceived to a moderate extent that performance
management is practiced in the hotel industry. The fact that quality and safety of supplies was
perceived to be high was indicative of the fact that quality and safety were key drivers in
managing performance in the hotel industry. However the dissatisfaction on pay for extra
hours worked would be indicative of the fact that hotels possibly preferred giving time off to
compensate for extra hours worked than to pay as payment increases costs of providing for the

30
service. However since most of the employees consider pay as a motivator they may be
dissatisfied with the pay for extra hours worked if they deem it to be too low.

The findings also showed that there was easy exchange of information with other members
within and between departments. This indicated that in the hotel industry, easy exchange of
information within and between departments was important in ensuring that the quality of
customer service was maintained.

The findings were supportive of the fact that whenever problems arose, management was
present and provided leadership in tackling problems. However the bosses did not allow
employees to seek solutions on their own and involvement of other departments in providing
the solutions was minimal. The findings may be indicative of the fact that hotels have formal
mechanisms for handling problems that may not give a lot of room for individual thinking.
Also the involvement of the superiors in solving the problem gives them an upper hand in
making decisions thus limiting employee autonomy in dealing with the problem. Also being in
the service industry means that there is complexity of inputs and outputs which may be
problematic if not handled properly. McLaughlin and Coffey (1990) confirm that a service
process may have many inputs and outputs that are mostly dependent on the mix of services
which may be bundled together in a complex way since services may be jointly produced or
interdependent. This complexity may limit the freedom of choices in a service set up.

The findings also indicated that management of performance facilitated good planning that
resulted in smooth working conditions. The high interrelationship between tasks meant that
timing was a key aspect in ensuring smooth completion of tasks and part of the management
process was meant to ensure right timing for the various tasks as a way of avoiding delays. The
results were indicative of the fact that the routines in the hotel industry follow an elaborate
formal process that defines the interconnection between tasks, is documented and may be the
basis for evaluation. The results supported Simons (2000) argument that performance
management systems are defined as „„the formal, information-based routines and procedures
managers use to maintain or alter patterns in organizational activities‟‟.

Employees were satisfied with their performance and believed that the quality of output was
very good. There was agreement that the management of performance had aided in fostering
good working relations. Employees easily find help in tackling challenging tasks and are able

31
to provide the necessary information to assist others complete their tasks. The findings were in
line with the general tendency in literature which seems to support the view that organizations
that have implemented PM perform better in both financial and non-financial terms than
organizations that are less performance management driven. The argument according to this
literature is that performance management directs attention and motivates the organization to
act in a strategically desirable way. It helps individuals to see their part in the wider enterprise
with greater clarity (Williams, 1998).

5.2 Conclusion
The current study was based on a descriptive design and sought to answer three questions; Do
employees appreciate performance management in the hotel industry? How satisfied are the
employees with their performance? Is there a relationship between perception of employees on
performance management and employee performance? To answer these questions, the hotel
industry was used as the study unit.

Based on the findings the study concluded that performance management was more focused on
ensuring good quality service to customers but employees in the hotel industry have not fully
appreciated the initiatives put in place. Though the employees perceived some of the initiatives
highly they did not seem to translate to much in terms of their performance.

The employees believed that they performed better in their daily tasks but there was no
significant relationship between their individual performance and the perception they had of
the initiatives in place. The study therefore concluded that employee perception on
performance management was not necessarily influencing individual performance in the hotel
industry.

5.3 Recommendations
There is need to re-evaluate the management initiatives with a view of making them
understandable to the employees. This may enhance their appreciation of what the managers
do and thus motivate them to work harder.

32
Management should evaluate new ways of motivating employees to perform better. Employees
in the hotel industry seem to prefer extra pay for extra work done. Managers should also
consider allowing employees to work in teams and also allow them to make decisions when
faced with problems.

There is need to re-evaluate the contribution of employee performance in the industry with a
view of establishing its main drivers/ predictors. This will enable managers to focus on the
issues that positively influence both individual and organizational performance.

REFERENCES

Abowd, J. (1990), “Does performance-based managerial compensation affect corporate

performance?” Industrial and Labor Relations Review, Vol. 43, (Special Issue),pp. 52-73.

Analoui, F. (2007), Strategic Human Resources Management, Thompson Learning

Armstrong, M. and Baron, A. (1998), Performance Management, the New Realities, Institute of
Personnel and Development, London.

33
Arthur, J. (1994), “Effects of human resource systems on manufacturing performance and
turnover”, Academy of Management Journal, Vol. 37 No. 3, pp. 670-87.

Banker, R., Field, J., Schroeder, R. and Sinha, K. (1996), “Impact of work teams on
manufacturing performance”, Academy of Management Journal, Vol. 39 No. 4, pp.
86790

Becker, B., Huselid, M., Pickus, P. and Spratt, M. (1997), “HR as a source of shareholdervalue:
research and recommendations”, Human Resource Management, Vol. 36 No. 1,pp. 39-
47.
Bento, A. and Bento, B. (2006), “Factors affecting the outcomes of performance management
systems”, Journal of Information Technology Management, Vol. 17 No. 2, pp. 23-32.

Bititci, U., Mendel, K., Nudurupati, S., Garengo, P. and Turner, T., (2006) “Dynamics of
Performance Measurement and Organizational Culture”, International Journal of Operations
and Production Management, Vol. 26 No. 10, pp1325-50

Blois, K.J. (1985), “Productivity and effectiveness in service firms”, Service Industries
Journal, Vol. 4 No. 3, pp. 45-60, and reprinted in Foxall, G. (Ed.), Marketing in the
Service Industries, Frank Cass, London.

Appendix: questionnaire
Questionnaire to the respondents

34
I am Milly Jepkorir a student at Rift valley technical training institute undertaking a Certificate
in catering and accommodation, As part of this certificate requirement, I am carrying out a
research project on “Challenges facing the performance of hotel Industry in Eldoret town”. You
are therefore kindly requested to help me fill the questionnaires with the required information.
The information provided will be used for academic purpose and as such going to be
confidential.

Yours faithfully

_____________

Milly Jepkorir

Instructions

1. Please do not write your name anywhere in the questionnaire.

2. Put a tick (√) inbox next to the right response.
3. Where no responses/choices are provided please write the response in the spaces
provided.

SECTION A: GENERAL INFORMATION

1. What is your gender?

a) Male
---
b) Female ---
2. What is your age

18-25 ---
26-29

30- 34

35- 39

40-45

35
 1 and above

3. How long have you been in this establishment

1-5 years

5-10 years

11 and above

4. Highest level of education

Secondary Level [ ] Certificate/Diploma [ ]
Degree level [ ] Postgraduate [ ]
5. Hotel rating

5 star hotel

4 star hotel

3 star hotel

2 star hotel

1 star hotel

6. Place of work

(i) Hot kitchen

(ii) Cold kitchen

(iii) Waiter

(iv) Others specify

36
SECTION B: To investigate the working conditions of employee in Eldoret Municipality
The following are the statement relating to the working conditions of employee. Kindly state the
extent to which you agree/disagree that listed attributes as concerns working conditions are
relevant for Hotel.

Where: 1 = strongly disagree; 2 = disagree; 3 = undecided; 4 = agree; and 5 = strongly agree

Statements /attributes related to working conditions 5 4 3 2 1

Promotion of employees’ rights

Working hours

A working environment that is safe and comfortable

Availability of working tools and equipment.

Methods of work that are suitable

The work places should avail ample parking facilities and security.

The working space should be well-ventilated, air-conditioned, and have

adequate lighting.

A clean office space with wash rooms and clean office space.

Flexibility of work schedule

Work-life balance

SECTION C: To assess the professional skills of the staff in Eldoret Municipality

1. Kindly indicate your level of agreement with the following statement that are related to
professional skills of the staff.
Key
1 = strongly disagree
2 = disagree
3 = neutral

37
 4 = agree and
5 = strongly agree,

1 2 3 4 5

Skills of the staff

Staff skills is an important contributor to individual and group

performance

Training improve communication between peers and thus acts a

motivation tool
Training ensures highly skilled employees with increased self-
esteem, commitment and performance

2. Does the employed employees’ performance strategies help in minimizing the rate of
employee turnovers rates in the organization?

a. Yes
b. No
If Yes/No explain…………………………………………………………………………..

…………………………………………………………………………………………………

……………………………………………………………………………………………
3. To what extent do the employed employees’ performance management strategies affect
realization of increased organization efficiency?

a. Very Large extent

b. Large extent

c. Moderate extent

d. Small Extent

e. Not at all
38
SECTION D: To explore the average customer turnover rate per month
1. Does the organization experience cases of customer turnover?
 Yes
 No
If Yes/No explain…………………………………………………………………………..

…………………………………………………………………………………………………

2. How could you rate the level of customer turnover in the organization?
 Very High
 High
 Average
 Low
 Very low
3. Please indicate how you agree on the following reasons of customer turnover in the

organization?

Please record your answer by ticking at the space provided, by the scale indicator.
(1= Strongly Disagree, 2 = Disagree, 3 = Neither agree nor disagree, 4 = Agree, 5 = Strongly
Agree)

Causes of turnover 1 2 3 4 5

Lack of Training and Development

Lack of Career Development

Lack of motivations

39
Lack of incentives and poor wages

4. If you were to leave the organization today, what could be your probable reason/s for leaving
the organization?

………………………………………………………………………………………………

………………………………………………………………………………………………

40