CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The motivation of employees, whether professional, skilled or unskilled, is a major issue in all service organizations. For the hotel industry, employee motivation is a major issue. It is a challenge for the management of the hotel industry to motivate employees to stay on the job and to offer the efficient and good service which customers expect (Cheng, 1995). One of a human resource manager’s functions is related to ensuring employees’ workplace motivation. Human resource management’s function is to assist the general manager in keeping the employees satisfied with their jobs. If employees are not satisfied, they will not perform to expected tasks. Workplace dissatisfaction and poor performance usually lead to low employee turnover in the hospitality industry, particularly in developed countries. According to a Hotel and Catering Training Company in the United Kingdom, turnover is the United Kingdom was estimated to have cost the hotel and catering industry 430 million pounds a year, and turnover was higher among men than women (Lucas, 1995). The Hong Kong Hotels Association found in its 1994-1995 annual survey that 41.26 percent of the employees in 63 hotels changed jobs or resigned.

Yu (1999) reported that in order to reduce labor turnover and retain productive employees, management has to improve working conditions and keep the employees properly motivated. Human resource managers need to understand the motivational processes and human needs in different cultures.