Puangpen Churintr

PERCEIVED ORGANISATIONAL CULTURE, STRESS, AND JOB

SATISFACTION AFFECTING ON HOTEL EMPLOYEE RETENTION: A
COMPARISON STUDY BETWEEN MANAGEMENT AND OPERATIONAL
EMPLOYEES

Puangpen Churintr
Suratthani Rajabhat University


ABSTRACT
A significant problem in the tourism industry is the lack of skilled
employees. This study aims to investigate the influence of perceived
organizational culture, stress, and job satisfaction on hotel
employee retention. This study surveys 355 hotel employees in the Upper
South of Thailand including 261 operational and 94 management hotel
employees, respectively. Using structural equation, the results indicate that
the low retention is an important problem. Data from in-depth interviews
was used as supplement to the survey data. For employees at the
operational level, perceived organizational culture is a more important
factor than job satisfaction. On the other hand, for employees at
management level, job satisfaction is more important than perceived
organizational culture. Stress has no effect on the employee retention of
both levels. The results of this study shed light on using tools to support the
retention of skilled hotel employees.


INTRODUCTION
Low retention is a serious problem in the hotel industry. There are different
schools of thought on factors affecting the hotel employee retention. For
example, some scholars found that organisational culture led to commitment
and that commitment, in turn, can be used as a better predictor of the
turnover rate of hotel employees than job satisfaction since those that are
fully committed tended to continue their work even with no job satisfaction
(Steers, 1977; Griffeth, Hom & Gaertner, 2000). On the other hand, Zohar
(1994) found that stress affected the service quality. In addition, stress
resulted in less job satisfaction (Singh, Goolsby & Rhoads, 1994; Jones, Chonko,
Rangarajan & Roberts, 2007), increased the intent to leave (Jones et al., 2007)
and affected behaviour on leaving the job (Sagar & Wilson, 1995). In contrast,
Griffeth et al., 2000, found that job satisfaction is the most important factor to
the retention.

The problem caused by turnover of operational employees in the hotel
business is very important because it affects the employee performance and
Perceived Organisational Culture, Stress and Job Satisfaction Affecting on Hotel
Employee Retention: A comparison study between management and operational employees
2010 Employment Relations Record, Vol. 10, No. 2 Page 65

decision making to resign (Borchgravink & Boster, 1997). This problem affects
hotel service quality and expenses which in turn affects performance and
growth of the business. The expenses in training new employees are inversely
related with customer satisfaction and business performance (Hinkin & Tracey,
2000; Davidson, Guilding, & Timo, 2006). In addition, without change in
employees, training expenses can be saved because less training is required for
skilled employees (Furunes & Mykletun, 2005) and also reduces cost of job
advertisement, interview, selection and training processes (Pizam &
Thornburg, 2000).

The objective of this study is to investigate the relationship between perceived
organisational culture, stress, and job satisfaction on the retention of
employees at operational and management levels in hotel businesses from the
Upper South region of Thailand. The contribution of this study is to provide
empirical evidence of competing theories, guiding suitable support tools to
human resource management in hotel business.

METHODOLOGY
Sample
The sample was hotel employees from 142 hotels, members of Thai hotel
association, in the Upper South region totalling seven provinces, namely:
Phuket, Chumporn, Krabi, Nakorn Srithammarat, Suratthani, Pang-nga and
Ranong. A questionnaire was designed to collect quantitative data. It was
tested for internal consistency of content and reliability of the tool before
being distributed to random samples which consisted of 261 employees at
operational level and 94 employees at management level.

Method
A Structural Equation model was employed in elucidating the factors affecting
retention of hotel employees at both operational and management levels. In
addition, in-depth interviews were used to further explore the results that
could not be explained by the survey.

RESULTS
Descriptive statistics
Table 1 illustrates that the age of employees in the sample are between 19-59
years with an average of 32.22 years. Duration of working at the present hotel
is between 0.8-33 years with an average of 5.58 years. Duration of working in
the present position is between 0.08-22.50 years with an average of 3.47 years
and an average of working at management level of 1.23 years. The longest
duration of working at management level is 23 years. Duration of working
since graduation has an average of 9.64 years with the longest at 40 years and
duration of working at present hotel is more than 3 years. Qualitative analysis
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from the in-depth interviews shows that hotels did not have a policy of firing
even during low season but chose other means to solve the problem such as
leave without pay, energy conservation measures, reducing service-charge
payment, and arranging free-time activities such as cleaning, and exercise for
employees.

Table 1: Descriptive Statistics
Years
(n=355) Min Max
x
S.D.
Age 19.00 59.00 32.22

7.32
Duration of working at the present hotel 0.08 33.00 5.58

5.62
Duration of working in present position 0.08 22.50 3.47

3.31
Duration of working at management level 0.00 23.00 1.27

3.00
Duration of working since graduation 0.08 40.00 9.64

7.61


Relationship between perceived organisational culture, stress and job
satisfaction on the employee retention of hotels from the Upper South
region

1. Employees at operational level
Table 2 shows that perceived organisational culture consists of turnover
culture, politics and organisational support, which have average values at 3.41,
2.81 and 3.37 respectively. Stress, which consists of role conflict, role
ambiguity, and role overload, show averages of being at different levels. Role
ambiguity has an average value at high level of 4.05 while role conflict has an
average value at moderate level and role overload has an average at low level
of 3.05 and 2.57 respectively. Job satisfaction consists of general, intrinsic and
extrinsic satisfaction. These have average values at high level of 3.81, 3.83 and
3.49 respectively. The retention of employees from operational level consists
of intention to leave, commitment, and job alternatives. Commitment and job
alternatives have average values at high level of 3.78 and 3.56 respectively
while intention to leave has an average value at low level of 2.55.








Table 2: Descriptive statistics of perceived organisational culture, stress, job
satisfaction, and retention of hotel employees from operational level
Perceived Organisational Culture, Stress and Job Satisfaction Affecting on Hotel
Employee Retention: A comparison study between management and operational employees
2010 Employment Relations Record, Vol. 10, No. 2 Page 67


(n=261) Min Max
x
S.D.
Turnover culture 5.00 1.00 3.41 0.89
Politics 5.00 1.00 2.81 0.73
Organizational support 5.00 1.33 3.37 0.65
Role conflict 5.00 1.00 3.05 0.76
Role ambiguity 5.00 1.00 4.05 0.59
Role overload 5.00 1.00 2.57 0.68
General satisfaction 5.00 1.00 3.81 0.81
Intrinsic satisfaction 5.00 1.67 3.83 0.53
Extrinsic satisfaction 5.00 1.29 3.49 0.61
Intention to leave 5.00 1.00 2.55 0.87
Commitment 5.00 1.00 3.78 0.74
Job Alternatives 5.00 1.00 3.56 0.69


2. Employees at management level

Table 3: Descriptive statistics of organisational culture, stress, job
satisfaction, and the retention of hotel employees from management level
Years
(n = 94)

Max Min
x
S.D.
Turnover culture 5.00 1.00 3.31 0.90
Politics 4.13 1.25 2.80 0.62
Organizational support 5.00 1.67 3.64 0.66
Role conflict 5.00 1.00 3.14 0.78
Role ambiguity 5.00 2.67 4.08 0.54
Role overload 3.67 1.00 2.65 0.56
General satisfaction 5.00 1.00 4.03 0.67
Intrinsic satisfaction 5.00 2.56 3.99 0.48
Extrinsic satisfaction 5.00 2.00 3.76 0.56
Intention to leave 5.00 1.00 2.54 0.75
Commitment 1.00 5.00 3.98 0.73
Job alternatives 1.50 5.00 3.68 0.65

Table 3 demonstrates that organisational support has an average value at high
level of 3.64, while politics and turnover culture have average values at
medium level of 3.31 and 2.80 respectively. Stress, which consists of role
conflict, role uncertainty, and role overload, show averages of being at
different levels. Role ambiguity has an average at high level of 4.08 while role
Puangpen Churintr

conflict and role overload have average values at moderate level of 3.14 and
2.65 respectively. Job satisfaction which consists of general, intrinsic and
extrinsic satisfaction all have average values at high levels of 4.03, 3.99 and
3.76 respectively. The retention of employee from management level consists
of intention to leave, commitment, and job alternatives. Commitment and job
alternatives have average values at high level of 3.94 and 3.68 respectively
while intention to leave has an average value at low level of 2.54.

CORRELATION
It was found that correlation coefficients between every variable used in the
analysis did not have multicollinearity (r< 0.70). Independent variables which
are the components of organisational culture, stress, and job satisfaction do
affect the retention of employees from both levels from hotels in the upper
south region having a correlation between -0.49 to 0.68.

The relationship between perceived organisational culture, stress and job
satisfaction on the retention of employees at management level
Figure 1 shows that organisational culture significantly imposes negative
influence on the stress in employees at management level with coefficient of
0.43. This means stress of the employees at management level will decrease
as the organisational culture improves, such as all possible organisational
support and less politics, while the stress will increase when these employees
have role ambiguity and role overload. However, employees at management
level better perceived organisational culture from organisational support
(0.95) than from politics (0.33).

Figure 1 shows that organisational culture had a significantly positive influence
on job satisfaction of employees at management level with coefficient of 0.37.
This means that job satisfaction should increase as aspects of organisational
culture such as high organisational support and less politics increases, where
employees at management level have the highest value of intrinsic satisfaction
at 0.83 with the 2
nd
rank of general satisfaction at 0.78 respectively. Extrinsic
satisfaction shows less influence than other types of satisfaction.
Perceived Organisational Culture, Stress and Job Satisfaction Affecting on Hotel
Employee Retention: A comparison study between management and operational employees
2010 Employment Relations Record, Vol. 10, No. 2 Page 69

























Figure 1: Relationship between perceived organisational culture, stress and job satisfaction on the retention of employees
at management level
-0.45
AMBI

LOAD
INTENT
COMMIT

CUL



STRESS
R
2
= 0.18
JOBSAT
R
2
= 0.49


RETENT
R
2
= 0.50

R
2
= 0.50

POLITIC
SUPPORT

GENSAT INTSAT EXTSAT
0.95
-0.43
0.37
0.35
0.78
0.83
0.71
0.39
-0.08
0.94
0.46
0.86
0.74
0.33
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Figure 1 shows that stress had a significantly negative influence on job
satisfaction with a coefficient of 0.45. The stress at management level was
caused more by role ambiguity (0.94) than role overload (0.46). Organisational
culture had a significantly positive influence on the retention with coefficient
of 0.35. Stress is inversely related with retention of employees at
management level but not significantly. Job satisfaction has a positive
influence on the retention of employees at management level with a
coefficient of 0.39 which indicates staying with the organisation providing that
they have job satisfaction. Organisational culture, job satisfaction and stress
accounts for 50 percent retention of employees at management level since the
employees at management level gave highest priority to job satisfaction at
0.39 and at a lower priority to organisational culture at 0.35 without giving and
consideration to stress (0.08) respectively.

Figure 2 shows that organisational culture has a significantly positive effect on
stress of employees at operational level with a coefficient at 0.49.
Organisational culture and stress impose a significantly positive influence on
job satisfaction of employees at operational level with a coefficient at 0.36 and
0.41 respectively. Organisational culture has significantly positive influences on
the retention of employees at operational level with a coefficient of 0.41 while
stress has a positive influence on the retention of employees at operational
level with a coefficient of 0.33.

SUMMARY
The quantitative analytical result by descriptive statistics shows that an
average value of duration for working at present hotels of 5.51 years, showing
a moderate retention by being higher than 3 years and the duration of working
after graduation of 9.64 years. The qualitative analytical results from in-depth
interviews shows that hotels did not have a policy of firing even during low
season but chose to solve the problem by other means such as leave without
pay, energy conservation measures, reducing service charge payment and
arranging extra activities such as cleaning, and exercise during free times for
their employees.

In examining the effect of perceived organisational culture on stress and job
satisfaction on the retention of employees at operational and management
level, and the stress of employees at management level organisational culture
explains up to 43% of stress influences. Stress from perceived organisational
culture also results in less job satisfaction for employees at this level. Stress
can be used in explaining 49% of job satisfaction. Employees at management
level will stay with the organisation provided that they can accept the
organisational culture, and they have high job satisfaction. Fifty percent of the
Perceived Organisational Culture, Stress and Job Satisfaction Affecting on Hotel
Employee Retention: A comparison study between management and operational employees
2010 Employment Relations Record, Vol. 10, No. 2 Page 71
























Figure 2: The relationship between perceived organisational culture, stress and job satisfaction on the retention of
employees at operational level
CONFLI AMBI LOAD
INTENT
COMMIT
CHOICE

CUL
STRESS

JOBSAT R
2

= .44



RET
R
2
= .52



TURNCUL
POLITIC
SUPPORT
GENSAT INTSAT EXTSAT
.39
.75
-.81
.
.49
.36
.41
-.84
-.87
-.87
.41

.33
.10
-.54
-.77
.75

.82
-.80
.22
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retention of employees at this level can be explained by perceived
organisational culture, stress and job satisfaction. Once the results of in-
depth interviews were brought into consideration, it was found that employees
at management level would stay with the organisation provided that they had
job satisfaction and accepted organisational culture, because they felt that
they are an important member, and have self-sufficiency, loyalty, pride, and
trust in their hotels owners. In addition, the hotels growth, which is being
reflected through additional investment and continuous development, is also
an important factor for employees to stay with their hotels. Stress is not a
factor for employees at this level because they like challenging work.

Stress for employees at the operational level depends on organisational culture
in which the culture can be used to explain 24% of stress. Stress from
organisational culture becomes a challenge for employees who seek
satisfaction in their job and stress can be used in explaining 44% of job
satisfaction. Employees at the operational level will stay with the organisation
if they accept the organisational culture and have high job satisfaction through
organisational culture. Stress and job satisfaction can be used in explaining
52% of the retention of employees at operational level. From the in-depth
interviews, it was found that employees at the operational level gave
importance to systematic working, good working environment, pride,
acceptance of working conditions, salary, good welfare, fair leadership, a good
management team, and kind owners.

DISCUSSION
Recommendations from this research are that strategic planning for the
retention of employees at operational and management levels should be
different from each other. At the operational level, emphasis should be given
to organisational culture, the most important factor influencing their retention,
while at management level emphasis should be given to job satisfaction. Stress
is not important to the retention of employees at both levels even if it does
show a higher relationship to job satisfaction than organisational culture at
both levels. Organisational culture and stress have positive influences on job
satisfaction of employees at the operational level. It is possible that employees
at the operational level, having given importance to their leader, would try to
please their leader to reap rewards such as promotion or organisational
support and end up with job satisfaction. Similarly, Karatepe and Kilic (2007)
found organisational support makes employees satisfied in their work. Stress
has no influence on the retention of employees at operational and
management level. It is possible that hotel employees accept stress as a norm
in the business and have abilities to manage the stress.

Perceived Organisational Culture, Stress and Job Satisfaction Affecting on Hotel
Employee Retention: A comparison study between management and operational employees
2010 Employment Relations Record, Vol. 10, No. 2 Page 73

The findings from this study suggest that people managers should treat the
importance of organisational culture, stress and job satisfaction differently.
Therefore, for employees at the operational level, less attention needs to be
given to stress since this study has already shown that stress is not the
important factor on the retention of employees at operational level. On the
other hand, greater emphasis should be given to organisational culture which
has more influence on the retention of employees at operational level. For
employees at management level job satisfaction has a positive and the highest
influence on the retention of employees. Therefore, to keep the employees
working with the organisation, different strategies should be employed at
operational and management levels.

However, the empirical variables used in this study do not include factors such
as the influence of individual character on the retention of hotel employees.
Only three empirical variables, namely turnover culture, politics, and
organisational support, representing the manifest variables of organisational
culture, were included. Future study may involve other empirical variables that
represent the manifest variables of the organisational culture. It may also
involve investigating the reason why turnover culture does not appear as one
of the empirical factors representing the manifest variables of organisational
culture in hotel business in this study, even though the work of Iverson and
Deery (1997) shows that turnover culture in tourism industry is an important
variable.




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