Employee Motivation Impact on IHG Hotels

This report investigates the impact of employee motivation on the performance of IHG hotels in London. Using a positivism research philosophy, inductive approach, exploratory design, and qualitative strategy, the study analyzes primary and secondary data from a sample of 30 IHG hotel managers. Thematic analysis reveals that employee motivation is crucial for organizational performance, impacting productivity, employee retention, and resistance to change. Key factors influencing motivation include remuneration, communication, role allocation, work environment, and rewards. The report concludes that IHG can enhance employee motivation through team activities, training, effective communication, and appropriate incentives. The study contributes to understanding employee motivation within the UK hospitality sector and offers practical recommendations for IHG to improve its performance.

To assess the impact of using employee
motivation on IHG hotels

EXECUTIVE SUMMARY
Employee motivation and organizational performance are the major bases of the current study.
Aim of this research was to assess the impact of employee motivation on IHG hotels of London.
As per this aim author has formulated some objectives which focused on assessing significance
of employee motivation in hospitality sector. Including this, identification of the impact of
employee motivation on performance of IHG hotels. Further, focus has also given on appropriate
ways through which employees can be motivated within IHG hotels. Regarding this, author has
conducted review of literature which has provided appropriate insights that helped in
understanding research problem and developing research plan. Author has applied some
appropriate methods of research such as positivism research philosophy, inductive research
approach, exploratory research design and qualitative research strategy. Including this, primary
and secondary data collection methods had been applied for collecting relevant information
about the research. Researcher has used ransom number sampling for selecting sample of 10
managers of IHG hotel. All collected information are analyzed by thematic analysis. Analysis
and discussion had concluded employee motivation was very important for improving individual
as well as organizational performance. Including this, finding shave also reflected that IHG
organization could increase the level of motivation among staff members by different methods,
such as providing appropriate working environment, training session, team activities, effective
communication and target and incentives.

TABLE OF CONTENTS
Introduction......................................................................................................................................4
Background of the Research (Literature Review) ..........................................................................5
Aims/Objectives...............................................................................................................................9
Research Methodology....................................................................................................................9
Findings..........................................................................................................................................14
Analysis, Discussion......................................................................................................................17
Conclusions and Recommendations..............................................................................................18
Reflective Statement......................................................................................................................19
References......................................................................................................................................20

INTRODUCTION
Employee motivation is one of the most important attribute of organizational
performance because it helps in encouraging personnel to give their best outcomes for
completing their roles and responsibilities in effective manner. It has been disclosed by different
researchers that low motivation among employees can create different problems for an
organization such as high employee turnover, low performance and profitability, etc (Botha,
Kourie and Snyman, 2014). So, each and every organization needs to focus on employee
motivation. The current research study was based on employee motivation and its impact on
organization’s performance and business activities. Regarding this, author has focused on a
hospitality organization of UK because at present most of the companies of this industry is
facing the problem on inappropriate motivation among employee and high employee turnover.
Therefore, author has determined the actual impact of motivation on performance of employees
as well as organization (Buchanan and Huczynski, 2010). Regarding this, a very systematic
process has been followed by researcher and this process comprised different steps such as
background study, research methodology, data analysis and final conclusion. In addition author
has also developed a reflective statements of the personal experience at the time of conducting
investigation of the current subject (Dey, 2002).
Research problem
Frequent changes in needs and requirements of customers and capability of employees
for providing better services had not matched in the current business scenario. It was the major
issues for IHG hotels. It has been operating its business operations at international and national
levels. In addition, for satisfying the needs and requirements of customers organization was
investing high amount of money in employee motivation by which company can improve its
capability towards satisfying needs of customers. But, organization was not capable to analyze
the actual impact of employee motivation on organization’s performance (Garland and Garland,
2012). So, for resolving this issue researcher has tried to determine the actual impact of
employee motivation on employee performance of IHG hotels.
Project rational
As per the above discussion of the problem statement major research issue was to
determine the impact of employee motivation on organization’s performance. It had been the
4 | P a g e

major issue because IHG organization was investing high amount of money for motivating
employees and improving their individual performance. But, company was not capable to
determine the association and impact between employee motivation and organizational
performance (Hayes and Ninemeier, 2007). So, identification of positive and negative impacts on
employee motivation has become very important for the current investigation. It is an issue now
because, most of the research scholars have conducted research studies on employee motivation
but no one have investigated with respect to the hospitality sector of UK. So, author wanted to
determine the impact of personnel motivation for IHG hotel. Therefore, author has chosen the
current research subject. (Goddard and Melville, 2004). It is likely to aid in improving their
individual performance.
Significance of the research
Findings of the current investigation has become significant for different individuals,
such as research scholars, managers, society and policy makers, etc. Using the findings and
results of the current investigation other research scholars have investigated similar research
subjects on other industry and organizations. Similarly, using this research report managers of
hospitality organization have got appropriate knowledge of employee motivation which would
help in developing organization’s strategies. Including this, they have motivated their employee
by different methods and improve the performance of organization. Research has become
significant for policy makers because it has helped in providing appropriate information about
customer’s as well as personnel by which they have formulated favorable policies for employees
as well as organization.
BACKGROUND OF THE RESEARCH (LITERATURE REVIEW)
Employee motivation
Krishnaswamy, Sivakumar and Mathirajan, 2009 has asserted that “motivation can be
defined as a behavior of an individual that reflects an appropriate reasons behind needs,
requirements and wishes of individuals” (Krishnaswamy, Sivakumar and Mathirajan, (2009).
Similarly, Kotler, Bowen and Makens, (2006) have concluded that “employee motivation can be
defined as an internal perspective of a personnel of an organization which influence them to
complete their roles and responsibilities in effectual way” (Kotler, Bowen and Makens, 2006).
Motivation plays very important role in increasing satisfaction level of employees. Along with
5 | P a g e

this, it helps in increasing interest of employees towards the job. What Is Motivation, 2015 has
asserted that “motivation is a process for encouraging and guiding employees for attaining goals
and objectives in effective manner” (What Is Motivation, 2015). Moreover, Albert and Ingulli,
2011 has stated that “there are different factors which can affect the level of motivation among
employees such as social, emotional, biological and cognitive factors” (Halbert and Ingulli,
2011). These factors have positive and negative impacts on employee motivation which can
increase and decrease motivation among each personnel of an organization. So, different
organization uses distinct methods for motivating employees for giving their best performance.
Different research studies have concluded that “employee motivation has strong association with
individual as well as organizational performance”. So, organizations of different industry needs
to focus on increasing employee motivation using various methods and techniques (Kalivas and
Volkow, 2014).
Motivational theories and models
Different researchers have developed various motivational theories for increasing
motivation of employees. These theories were based on needs, requirements and wishes of each
and every personnel. Some theories also focus on circumstances and situations of organization.
As per the review of literature and objectives of the research author has selected some
motivational theories for determining impacts of employee motivation on organization’s
performance (Motivational Techniques, 2015). These theories are as follows:
Maslow’s theory of motivation:
It is one of the important theory of motivation and also called hierarchical theory of
needs. As per this theory, every employee has their own needs so, organization should select
appropriate way to motivate them. According to the hierarchical theory of motivation major
needs of employees are physiological, safety, love and belonging, esteem and self-actualization
needs. Organizations can increase the level of employee motivation by satisfying these needs in
effective manner (Wild, Wild and Han, 2014). As per this theory all those employee who have
social needs can be easily motivated by satisfaction of this needs by water, food and shelter, etc.
As per this theory safety and security needs of employees can be completed by employment,
health and safety, property and family. In addition, love and belongingness is also one of the
important need of motivation and it can be satisfied by friendship, sexual intimacy and family.
6 | P a g e

All these are considered as basic needs of employees which are required for living their daily life
in effective manner. After satisfying all these needs, organizations need to focus on upper level
needs of employees. These needs are relevant to esteem and self-actualization needs (Murphy
and Yetmar, 2010). Satisfaction of these needs helps in increasing motivation of employees in
high manner. Therefore, as per this theory of needs each and every organization should
determine the motivational requirements of each employee and try to motivate personnel by
satisfying these needs in effective manner. Such types of motivation can help organizations in
attaining mission and objectives in effective manner (Palmer and Hartley, 2008).
Two factor theory:
Herzberg’s theory of motivation is also included in one of the important theory of
motivation. According to this theory there are two types of factors which can affect the level of
motivation of employees of the organization. These factors are motivational and hygiene factors
of workplace which can increase and decrease motivation of personnel of an organization.
Motivational factors lead increment in employee motivation of an organization but on the other
hand, hygiene factors reduce encouragement of employees towards the job and organization
(Jeon and Choi, 2012). According to this theory motivational factors include promotional
opportunities, individual and personal growth, acknowledgment, roles, responsibilities and
achievements. All these factors has helped in increasing the level of motivation of employees so
organizations needs to focus on managing motivational factors at workplace. On the other hand,
there are different hygiene factors which can decline motivation of staff members. These factors
include inappropriate working environment and culture, time bound, heavy workload,
inappropriate policies for salary and wages and unfavorable HR policies, etc (Muondo and
Perkins, 2013). Therefore, organizations of different industry has to improve all hygiene factors
at workplace for motivating employees in effective manner.
Significance of employee motivation
Review of literature has reflected that most of the researchers have concluded that
employee motivation has become very important for improving organizational performance. In
addition, it has become very significant for attaining mission and vision of the organization
(Ivanov, 2014). Mullins, 2010 has concluded that “employee motivation is very valuable for
increasing the job satisfaction level of employees as well as for reducing employee turnover”
7 | P a g e

(Mullins, 2010). In contrast, Lee and Morrison, 2010 has stated that Motivation was valuable
not only for retaining employees but also for encouraging them to give their best outcomes for
attaining goals and objectives of the company” (Lee and Morrison, 2010). Therefore, motivation
has become very important attribute for maintaining strong and effective relationship among
management and staff members of an organization by which organization can run all business
operations in a smooth way.
Impact of employee motivation on organization
Hill and Hernández-Requejo, 2011 has stated that “employee motivation has lots of
positive and negative impacts on business operations of organizations which can affect
performance of a company” (Hill and Hernández-Requejo, 2011). As per the above discussion
employee motivation has become important as it has positive impact on organization’s
performance. Lucio, 2013 has asserted that “different organizations have made arrangement of
education, training and development which played important role in increasing skill, capabilities
and motivation of employees” (Lucio, 2013). These training session impacted on their
capabilities, final outcomes and overall business performance of the company. Daniel and Sam,
2011 have concluded that “Each and every organizations have some employees with negative
attitude which can affect the behavior of whole team so, motivation can improve the negative
attitudes of those employees” (Daniel and Sam, 2011). Therefore, employee motivation has
positive impacts on relationship and behavior of employees at workplace. It has helped in
maintaining coordination and communication at workplace which augmented of final
productivity and efficiency of the organization (Pinder, 2014).
Including this, Dörnyei and Ushioda, 2013 have concluded that “employee motivation
has played important role in increasing interest of employees towards job which has positive
impact on employee reduction of different industries” (Dörnyei and Ushioda, 2013). As per this
statement, turnover of employees was one of the major issue of organizations. Motivation has
positive impact on this problem as well as also help in retaining employees for long term.
Moreover, Kumar, 2014 has concluded that “employee motivation reduces resistance to change
at workplace because through the appropriate motivational techniques organization can prepare
employee to adopt changes without arguments” (Kumar, 2014). Therefore, all these positive
impacts play very significant role in improving organizational performance. Including this, Elliot
and Dweck, 2013 have concluded that “employee motivation has positive impact on conflicts
8 | P a g e

and disputes at workplace” (Elliot and Dweck, 2013). As per this statement, through the
employee motivation an organization could reduce strike, conflicts and disputes at workplace. It
has helped in maintaining smooth flow of production as well as also help in augmenting
efficiency and productivity of company. Therefore, motivation has helped in accomplishing
goals and objectives of a company which has further increased overall performance of the
organization (Donohue, 2007).
Overall, literature review and its findings have reflected that employee motivation is very
important for an organization. There are large number of researcher who have conducted
research studies on different subjects such as motivation and employee retention, motivation and
performance of industry. But, no one has investigated on impacts on motivation on
organizational performance of IHG hotel. So, as per this research gap author has decided to
conduct study on this subject (Green, 2007).
AIMS/OBJECTIVES
Aim:
“To assess the impact of employee motivation on hospitality organization: A case study
of IHG hotels”.
Objectives:
 To assess the significance of employee motivation in hospitality sector To identify the impact of employee motivation on performance of IHG hotels
Research question:
1. What is the impact of employee motivation on performance of IHG hotels?
RESEARCH METHODOLOGY
Research philosophy
It can be defined as a research paradigm by which an author can conduct study in
effective manner on the basis of subjectivity and objectivity of the research topic. For the current
investigation author will apply positivism research philosophy because it focuses on the
objectivity of the research subject and aim rather than subjectivity of the research theme. It will
be appropriate because it is a philosophy of the science which is based on only true facts,
experience and interpretation of the mathematical and rational actions (Lillis, 2008). Further it
9 | P a g e

will helpful in determining the impacts on employee motivation on different aspects of the
organizational performance.
Research approach
Approach of the research would play important role in determining findings in terms of
general or specific mariner. Author has selected suitable approach from inductive and deductive
approaches. Inductive research approach moves from specific to general and in contrast
deductive research approach conducts study in a way from general to specific. For the current
investigation author has selected inductive research approach because it has helped in completing
whole investigation specifically for IHG hotels and afterwards it would develop a new theory for
organizations of different industry (Bhattacharyya, 2009). Therefore, findings of the current
investigation has included facts and figures of the specific to general results. In addition, it has
also shed lights on research questions rather than hypothesis. So, it would determine appropriate
solutions of each question using inductive research approach in effective manner (Weiner, 2012).
Design of the research
There are different research designs which provides an appropriate way to conduct whole
study in appropriate way. Exploratory research design will be applied by researcher because
research problem in not clearly defined. So, it will help in understanding the research problem in
effective manner as well as will provide assistance in determining association between situations,
people and context. Overall, researcher can easily determining the link between employee
motivation and organizational performance of IHG hotels (Flick, 2011). Including this, expletory
research design will be beneficial for attaining all research objective in effective manner.
Research strategy
For determining impacts on employee motivation on performance of IHG hotel
researcher needs to implement a suitable research strategy among qualitative and quantitative
research study. According to the subject and objectives of the investigation author will apply
qualitative research technique. It will be used by researcher because it focuses on the subjective
and theoretical concepts of the research subject. Therefore, it will be beneficial for understanding
the research issue by different motivational theories and models (Butler, 2010). Along with this,
it will also help in getting appropriate findings and results without implication of mathematical
10 | P a g e

treatments. Overall, qualitative research strategy will be best for understanding the importance
of employee motivation for a hospitality organization.
Data collection
Impact of employee motivation on organizational performance has been determined by
researcher using appropriate information about the research subjects and objectives. These
information has been collected by different appropriate methods such as primary and secondary
data collection methods. So, author has applied both techniques of data collection for obtaining
suitable information about employee motivation and organizational performance. In which
primary data was appropriate for getting new and fresh information about the IHG hotels
(Aggett, 2007). It has comprised of facts about the motivational techniques of company, level of
employee motivation and performance of the company. Primary data collection technique has
been applied by researcher using an online questionnaire survey. This questionnaire was
comprised of suitable questions related to the objectives. Recent primary data collection methods
has helped in analyzing the recent business scenario of this hospitality organization.
Author has also applied secondary data collection method for collecting historical
information about the employee motivation and its impact on organizational performance
(Whiteley and Whiteley, 2006). According to the above discussion, research problem was not
defined in effective manner. So, secondary information would help in getting appropriate
insights to understand the research problem. Author has used literature review for collecting
secondary data. It has been conducted by different sources such as websites, journals, books,
libraries and past research papers. Therefore, primary and secondary data collection method has
played important role in getting appropriate information about the research subject (Weiner,
2013).
Data collection instruments
According to the above discussion author needed to use different instruments for
collecting appropriate data. For primary data collection author has used questionnaire. Author
has developed a structured questionnaire related to the research objectives which was comprised
of open and close ended questions about employee motivation and organizational performance.
Therefore, questionnaire was appropriate for getting primary information about the research
subject (Mullins, 2010).
11 | P a g e

On the other hand, secondary data was collected by different sources such as websites of
IHG hotels, online libraries, research papers, journals, blogs and other research articles of the
research subject. All these sources have played important role in getting information about the
past research of other research scholars. All these information would be beneficial for resolving
research problem in appropriate manner (Hill and Hernández-Requejo, 2011).
Questionnaire:
1. As per your experience, do you believe that employee motivation is important for
improving organizational performance of IHG hotel?
 Yes
 No
2. What is the major reason behind the low level of employee motivation?
 Inappropriate remuneration policies
 Lack of communication and motivation
 Inapt allocation of roles and responsibility
 Working environment and organization culture
 Inappropriate rewards and incentives
3. Is IHG hotel using appropriate techniques of motivation for motivating staff members of
the organization?
 Yes
 No
4. What are the major impacts and importance of employee motivation on IHG hotels of
London?
 High productivity and efficiency
 Reduction in employee turnover
 Reduce resistance to change
 Increment in job satisfaction level of employees
 Reduction in disputes and strike at workplace
 Help in attaining organizational goals and objectives
12 | P a g e