Effects of Service Scape and Service Climate on Hospitality Service Employees

The effects of service scape and
service climate on hospitality
(hotel) service employees

ABSTRACT
The purpose of the research is to analyse The effects of service scape and service climate
on hospitality (hotel) service employees. Literature review has been written by utilising the
secondary sources such as books, Journals , magazines etc. The main objective of the literature
review is to analyse the perception of different authors about the topic. Research has been
conducted for Marriott hotel. Qualitative research has been conducted for gathering the
information about the subject. The other methodology which has been sued in highlighted in the
research report. The research has great importance as findings will help management in
determining an effective strategies for improving servicescape and climate. It has been found
from the investigation that servicescape as well as environment has significant effect on
employees performance and behaviour at workplace.

TABLE OF CONTENTS
CHAPTER 1 : INTRODUCTION .................................................................................................1
Background of the problem.........................................................................................................1
Aims and objectives ...................................................................................................................2
Overview of organisation............................................................................................................2
Research questions ....................................................................................................................2
Significance of the study ............................................................................................................3
Limitation of the study................................................................................................................3
CHAPTER 2 : Literature review.....................................................................................................4
Introduction.................................................................................................................................4
Literature review.........................................................................................................................4
CHAPTER 3 :METHODOLOGY.................................................................................................10
Methodology ............................................................................................................................10
CHAPTER 4: RESEARCH FINDINGS........................................................................................16
........................................................................................................................................................22
........................................................................................................................................................24
........................................................................................................................................................27
CHAPTER 5 : DISCUSSION ......................................................................................................42
CHAPTER 6 : CONCLUSION.....................................................................................................43
CHAPTER 7 : RECOMMENDATIONS ......................................................................................43
REFERENCES..............................................................................................................................45

CHAPTER 1: INTRODUCTION
Background of the problem
Servicescape can be defined as the environment in which services are delivered to
customers. It is a type of surrounding in which the interaction between clients and service
provider take place. Development of good as well as comfortable working environment is
important in order to provide workers an ease in performing their roles as well as responsibilities
in an effective manner (Yang, 2015). The environment prevailing at workplace has significant
effect on employees' behaviour as well as working efficiency. This can be referred to as
surroundings within an enterprise where the service is assembled and interaction between sellers
as well as clients take place (Avan, Zorlu and Özmen, 2019). The environment prevailing in an
organisation can have significant influence on the satisfaction gained by an individual from their
job. Development of good working environment is also necessary as these factors can have great
effect on workers performance as well as quality of services being delivered to customers
(Baum, 2019). It is good service environment or surroundings at workplace which inspire
employees to give their best performance and positive influence them to make their valuable
contribution in accomplishment of business objectives. An effective servicescape at workplace
will enable employees to fulfil their requirements and get the high level of satisfaction from their
job (Bujisic, Hutchinson and Parsa, 2014). Positive working environment at workplace leads to
the high level of commitment and increase in employee’s loyalty towards firms. It is essential
for management in an enterprise to maintain quality and good environment at workplace, as this
is the tactics which will assist them in eliminating ethical as well as legal issues (Guchait,
Paşamehmetoğlu and Lanza-Abbott, 2015).
In context of hospitality industry, the servicescape is the factors which has great influence
on the way interaction between hotel staff as well as guest take place (R. Morgan and et.al.,
2014). As perception of the employees towards the hotel industry has changed, many of the firms
in this industry is facing issues while recruiting new skilled as well as talented candidates. Such
issue has been faced by many of the organisation in hospitality sector, as there is high workload
and people have to work on weekends because of which they face issue in maintaining their
work life balance (Hatipoglu and Inelmen, 2018). It is the main reason candidates do not prefer
to work in hotel sector. Considering the issue related to hiring or recruitment, Servicescape in
hospitality industry has become crucial it has become one of the factors that can assist hotels in
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attracting the knowledgeable, experience and skilled workers (Jani and Han, 2015). In relation
to the hospitality sector, Servicescape is now considered to be an important management tool.
Service climate refers to staff behaviour and relationship with high authority, it
influences on workers' performance and productivity as well as business success and growth.
Productivity of business and increase of profit margin is highly depended on pleasant service
climate within hospitality industry.
Service climate in the hospitality industry has great influence on employee engagement
in different business activities. In context of service industry such as hospitality, the crucial role
played by human resource management that is developing environment conductive as well as
creative environment lead to the production excellence as well as results into great improvement
in the performance of employees at workplace (Kang, Busser and Choi,2018.). Maintaining the
good working culture as well as well as environment within an enterprise is essential in order to
drive firm towards success and in context of gaining the competitive advantage.
Overview of organisation
Marriott is an American Multinational hotel which offers both food and accommodation
services to customers. Business entity also provides lodging facilities to clients. An organisation
is among the third largest hotel chain in the world. Marriott hotel has approx. thirty brands and
company is operating business in approx. one hundred and thirty one countries globally. There
are approx. 176000 employees working at different location for an organisation
Aims and objectives
Aim: to analyse “the effect of Service climate and Servicescape on service employees of
hospitality sector”: A case study of Marriott hotel.
Objectives:
 To develop the understanding about the concept of servicescape and service climate I
 To analyse the role of service climate in improving employees satisfaction .
 To determine the influence of services climate on performance of employees.
 To suggest the ways the service climate in Marriott hotel can be enhanced.
Hypothesis development
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Research questions
 What is the concept of Servicescape and role of service climate in hospitality industry.
 What is the role of service climate in improving employees satisfaction ?
 What is the influence of Service climate on employee performance in Marriott hotel?
 What are the strategies that can be applied for enhancing customer service environment
in Marriott Hotel?
Significance of the study
The present investigation on topic impact of servicescape as well as climate on service
employees in hospitality sector has great importance, as it will help researcher in developing the
understanding about the concept of servicescape. In addition to this, finding of the study will
help in developing the understanding about service climate and employees behaviour. It will
enable readers of this research report to develop the understanding about the significant role
played by servicescape as well as service climate in supporting employees to improve their
performance at workplace. Present study has great significance, as it will help management of
Marriott hotel in identifying the best strategies which can be applied for bringing improvement in
the service climate within hotel.
Limitation of the study
In context of present research on topic impact of servicescape as well as climate on
service employees, there are two limitations these are time and resources. Due to limited time
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Hypoth
eses
H1 Service quality rating
H2: Service
environment
H3 and H4: Designing of services
Employee
satisfaction
and
performance

period as well as resources I have failed to conduct the in depth investigation. I because of
limited time and resources will conduct only few activities during the time of investigation these
are data collection, analysis and interpretation. This investigation has limited scope to the extent
of hospitality industry only. In addition to this, investigation is only conducted by considering 30
people. This investigation is limited to service industry only and not goods industry.
Other limitation of the study is that the significance of service climate is acknowledged
but only in context of employee behaviour. Further investigation can be performed for analysing
the effect of service climate and service scape on customer behaviour. In addition to this, in
depth investigation can be performed for determining the relationship between service climate
and service orientation. The second limitation is that due to lack of knowledge about research
methodology, there was some obstacles which has occurred in completion of the research project
on time.
CHAPTER 2: LITERATURE REVIEW
The different themes covered in literature review sections are concept of servicescape
and service climate in hospitality sector, Role of Servicescape and climate in relation to
supporting workers in delivering quality services to customers, Influence of Servicescape upon
employee behaviour in Marriott hotel and Strategies that can be applied for enhancing service
climate in Marriott Hotel.
Literature review
Stimulus organism response model, it is the hypothesis which shows direct or indirect
effect of hospitality environment or design of servicescape on performance workers. The
hypothesis states that it is the surrounding environment which has significant effect on their
performance at workplace. The hypothesis is critiqued by other authors those who perceives that
it is an individual internal stimulus which positively influence them to improve their
performance within an organisation. According to the Stimulus organism model servicescape
can be reffered to as all physical factors which can be controlled by organisation for enhancing
actions of employees as well as customers. It is the hypothesis which is also based on assumption
that human beings within the service interactions get highly influenced by surrounding or
environment prevailing at workplace. However , the theory has been criticised by other author
Baum, 2019., who perceives that “a person in this interchange is a passive creature, reacting to
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an environment that stimulates him or her, and that person’s influence on the 5 environment is
ignored”. But according to the Stimulus organism model when an individual is exposed to
external stimuli, ‘inner organism changes’ precede behavioural responses. As per the opinion of
Bujisic, Hutchinson and Parsa, 2014., it is the set of particular mental procedure which includes
feelings, emotions and moods that has great influence on employees behaviour as well as
performance at workplace. The Stimulus organism model states that feelings , moods etc. are
highly influenced by the surroundings or environment. It has been argued by other authors as
well as scholars that employees react to servicescape by displaying one or more opposed type of
attitude.
Concept of servicescape and service climate
According to the opinion of Kaminakis, Koritos and Gounaris, 2019, servicescape can be
defined as the physical environment such as artefacts, design, décor etc. which has significant
influence on employees behaviour as well as performance within in hospitality sector. However,
it has been argued by other authors those who perceives that it is the atmosphere prevailing
within an organisation which enables employees to deliver good service experience to guest. As
per the view of Dedeoglu, Buonincontri and Okumus, 2018., servicescape can be defined as the
various arrangement made by both management and hotel staff for delivering the services to
customers. The other authors argues that it is basically a design of physical environment in hotel
as well as other crucial elements of it which facilitates and helps in bringing improvement in the
quality of services which is being delivered by hotel to customers. As per the opinion of Avan,
Zorlu and Özmen, 2019., servicescape is the factors which has significant influence on physical
environment where the service delivery procedure takes place.
According to Guchait, Paşamehmetoğlu and Lanza-Abbott, 2015., servicescape can be
define as physical environment where services is delivered, performed and consumed, it is also
considered as the place where company and consumer interact with each other. Service scape is
considered to have impact on client’s response, evaluation, particularly perceptions and
assessment. Facility exterior and interior are the two different types of service-scape elements,
exterior design, parking, surrounding environment, service climate, landscape and signage is the
exterior elements. On the other side, layout, music, equipment and layout is the interior
components. Unpleasant service climate and servicescape impact hotel workers services. Warm
colour tones of lobby and black leather in combination with pleasant attitude of hotel workers,
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