The Impact of Employee Motivation on Service Quality

This literature review investigates the critical relationship between employee motivation and service quality within the hospitality sector, specifically focusing on 5-star hotels in London. The review begins by defining employee motivation and its significance in fostering productivity and customer satisfaction, drawing on the perspectives of various researchers. It then explores the concept of service quality, emphasizing its importance in gaining a competitive edge, and highlights the factors that influence it, such as professionalism and promptness. The review also examines the role of service quality in the hospitality industry, underscoring the need for organizations to offer superior services to retain customers. Furthermore, it delves into the direct link between employee motivation and service quality, explaining how motivated employees contribute to improved customer experiences and organizational success. The review concludes by emphasizing the techniques used to encourage employee motivation, such as rewarding and appreciating efforts, and how these practices ultimately enhance service quality and overall business performance. The literature highlights that motivated employees are better equipped to meet customer needs, leading to greater customer satisfaction and loyalty. The study also explores the challenges associated with maintaining service quality, such as understanding employee needs and implementing change.

LITERATURE
REVIEW
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Table of Contents
......................................................................................................................................................1
Literature review .............................................................................................................................3
2.1 Introduction............................................................................................................................3
2.2 The concept of employee motivation ...................................................................................3
2.3 Concept of service quality in hospitality industry ................................................................4
2.4 Role of service quality in hospitality sector..........................................................................5
2.5 Link between employee motivation and service quality........................................................6
2.6 Techniques for encouraging employee motivation 500.........................................................7
2.7 Factors affecting employee motivation in hospitality industry .............................................9
2.8 Conclusion...........................................................................................................................10
References......................................................................................................................................11
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Title : The impact of employee motivation on service quality in 5* London hotels
Literature review
2.1 Introduction
Literature review is the most crucial chapter of an investigation that represents the
secondary information that is done in respect with the research topic. This chapter includes the
information about finding of other authors on the similar topic. The aim of present investigation
is to investigate the relationship between employee motivation and the concept of quality service.
This section explains the concept of employees motivation and services quality as well as it
defines that role of quality service in hospitality sector. However, the proper information about
factors affecting employee motivation in hospitality industry is explained. Literature review
section of this investigation defines the link between employee motivation and service quality
and the techniques that could help to encourage employee motivation in hospitality industry.
2.2 The concept of employee motivation
In modern era, the competition among businesses in hotel industry has become so intense
that it is not easy to grow and survive. Now a days most of the hotels are focusing on employee
motivation in order to make them more productive and gain high degree of customer satisfaction.
As per the view of Zhang and Bartol (2010) employee motivation consists of those tools and
techniques which are used by organizations to encourage employees in giving their best. In
addition to this, it also helps in making the workers more effective and efficient (Zhang and
Bartol, 2010). According to Grant (2007) many 5 star hotels are now focusing on the techniques
of employee motivation in order to gain competitive advantage over other market players (Grant,
2007). With the increasing number of tourist, the number of hotels has a also increased to a great
extent. Further it has become very difficult for organizations to find out the ways using which
they can gain advantage over other market players. Now businesses are gaining advantage with
the help of employee motivation as two firm can have same financial and technological
resources but what make them differs from one another is their human resources. Moynihan and
Pandey (2007) has explained that with the help of employee motivation, organizations try to
identify what are the factors which encourages workers to give their best (Moynihan and Pandey,
2007). The hotel industry is the one which possess very high rate of employee turnover. Thus,
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the concept of employee motivation also helps in lowering down the rate of employee turnover.
As per the view of Lin (2007) the workers in every hotels are dissatisfied because they are not
paid well and their timings are also not appropriate (Lin, 2007). Some times employees are
required to work overtime and they are not even paid for the same. The techniques of
motivations acts a driving force for workers and boost their morale. Now a days managers have
started to provide monetary and non- monetary rewards to people within organization which has
helped in developing a sense of satisfaction among them. When employees efforts are being
recognized and appreciated in front of every one, then positive energy is developed among them
(Van den Broeck and et. al., 2008). This energy forces them to perform outstanding in future
which further assist organization to achieve its aim and objectives in more effective manner. Has
asserted that employee motivation is also necessary because the employee are the one which
have a direct interaction with customers in hotel industry. In addition to this, a highly motivated
employee is always able to understand and meet the demand of customers (Schaufeli and
Bakker, 2010). This directly helps in getting high degree of customer satisfaction and also
encourages customers to repeat purchase.
2.3 Concept of service quality in hospitality industry
The concept of service quality is long been witnessed in the hospitality industry as
service is the most crucial part of gaining competitive advantage. The services are provided to
the customers before, during and after purchase of product and services. The investigation
conducted by Park, Kim and Krishna, (2014) defined the importance of consumer service in
hospitality organization. As per the results of investigation 90 percent of hospitality companies
are accounted on human side of the business to provide effective services to customers. As a
result of study (Customer Service Training Center, 2015) 45% of customers switch a company
just because of not providing effective services. The customers are to be given proper attention
and they are to be provided the best services, in case hospitality company wants to retain them
and recall them. According to the investigation of Halal (2003) the stage of customers delight
depends on quality of services provided to the customers. Within hospitality industry, most of the
services are provided by employees, hence, the behaviour of employees decide the service
quality. As per the concept of service quality, there are four major aspect on which service
quality depends such as Politeness, Professionalism, Personalization and Promptness. To the
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view point of Hartman and Conklin, 2012 Customer service quality enables hospitality business
to get wares with the specific needs of customers so as to proved them service accordingly
(Hartman and Conklin, 2012). The concept of service quality provides organization, a chace to
attain customer's loyalty and satisfaction. Wang and Fesenmaier (2006) argued customer service
concept as a way to keep customers happy and gain ongoing business from them. As per the
results of study conducted by American Express Global Customer service barometer, “78% of
consumers are not willing to have services from employees who have firstly provided poor
quality services. The study has further identified that poor customer services resulted to loss of
customers. This concept is argued to be the best concept within hospitality organization to
flourish and gain attention of customers along with attaining higher profits and revenues.
2.4 Role of service quality in hospitality sector
Service quality determine how well the service of a particular firm has meet and satisfied
the demand of customers. As per the view of Akbaba (2006) customer is considered as the king
in every industry and all the efforts of businesses are directed towards achievement of high
degree of customer satisfaction (Akbaba, 2006). In the present scenario the competition among
businesses in hospitality industry has become very tough and it is now a good situation for firms
operating in this industry. According to Ladhari (2009) now the organizations are required to
ensure that they are offering the best quality of services to customers (Ladhari, 2009). If the
service quality is not accurate then the customer do not have to worry because he has a wide
variety of alternative available. On the other hand, in order to survive and earn adequate profits,
the businesses are required to focus on their services quality. The organizations are required to
understand the fact that it is very difficult to attract a new customer as compared to retaining old
ones. Further high degree of customer satisfaction and their loyalty are some of the biggest asset
for any organization that operates in hospitality industry. HoweverNadiri and Tanova (2010)
argued that it is not easy for businesses to maintain and manage appropriate level of quality in
their services (Nadir iand Tanova, 2010). The manager are required to take care of various
factors in order to deliver accurate and bets quality of services. As per the view of Nadiri and
Tanov (2010) service quality plays a very important role in the success of organizations in
hospitality industry as it provides them with high degree of customer satisfaction (Nadiri and
Tanova, 2010). Other than this, when customers are provided with best quality of services then
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they are automatically encouraged to become loyal by making repurchase form that particular
organization. Briggs, S., Sutherland and Drummond (2007) has explained that businesses can set
various parameters and standards in order deliver quality services to their customers (Briggs
Sutherland and Drummond, 2007). There are various tools and techniques of managing and
maintaining quality which can be employed by firms. Quality services also helps businesses in
increasing their sales and profitability by attracting some new customers and retaining the old
one. Along with this, it assists in increasing the market share by providing most satisfactory
services to people in the market. In accordance with Han, Kim and Hyun (2011) when businesses
are able to deliver fast and quality services then are able to increase their brand value and
goodwill in the market (Han, Kim and Hyun, 2011). It is the only reason why most of the hotels
always seeks for improving their service quality in order to increase their sales and profitability
rather than doing marketing and promotion of their services. If the service quality of businesses
in hospitality industry is not good then it creates dissatisfaction among mind of customers and it
also encourages them to use the services of competitors (Kayaman and Arasli, 2007). Further it
is termed as one of the biggest loss to any kind of organization.
2.5 Link between employee motivation and service quality
The concept of employee motivation and services quality aim at increasing the sales and
profitability of organization. Liao and et. al., (2009) has explained that employee motivation is
directly linked with services quality as motivates employees are always able to deliver best
quality of services to customers (Liao and et. al., 2009). A team of highly motivated workers is
able identify and satisfy the need and demand of guest in a particular hotel. In addition to this,
motivated employees provide their views and suggestion regarding how the quality of services
can be improved at its best. As per the view of Salanova, Agutand Peiró, (2005) a motivated
workers is able to deal with guests in hotel in more effective manner (Salanova, Agut and
Peiró,2005). Further he also initiates reviews and feedback from guest regrading the quality of
services provided. On the other hand, in discussion and meeting also these employees participate
actively and make sure that the services provided are best in the industry. However Wat and
Shaffer (2005) argued that it is not easy for employer to understand what are the factors which
motivates and encourage people in the organization to give their best (Wat and Shaffer, 2005).
Most of the time workers are motivated when there need and demand gets satisfied. Motivating
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employees is considered as one of the most difficult task for managers as there are not able to
judge wherever financial rewards will motivate employees or non financial rewards. Along with
this, businesses are also required to be very careful at the time of rewarding and appreciating
efforts of their workers (Combs and et. al., 2006). Even if the organization uses fair practice of
rewarding employee then also a sense of dissatisfied can be created in the mind of employee
which are not rewarded. Has stated that one of the best way to achieve high degree of employee
motivation is by making them engage in the formation of reward systems. Further the workers
are the one which have a direct interaction with customers or guest in the hospitality industry.
Therefore they understand the need, demand problem and issues of the clients in more effective
manner as compared to any other member of organization. In addition to this, a team of highly
motivated employee always try to ensure that the best and most satisfactory services are provided
to the customers. On the other side of this Nadir and Tanova (2010) has explained that motivates
employee also helps in implementing and managing changes in organization which is very
essential in order to provide quality services (Nadiri and Tanova, 2010.). Further organization
need to change its existing practices and activities in order to improve the overall quality of their
services. Humphrey, Nahrgan and Morgeson, (2007) has explained that motivated employees
always encourages and initiates changes in organization (Humphrey Nahrgang and Morgeson,
2007). Along with this, they also helps the organization in ensuring the fact that the services
provided by them are the best and most effective ones. Both service quality and motivated
employees are essential for the growth and success of organization. Further it provides
opportunities to expand and enhance the brand image of any businesses (Zhang and Bartol,
2010). It as been found that high motivation among employee will results in providing the best
services to customer.
2.6 Techniques for encouraging employee motivation 500
Employees motivation is a force to motivate employees for improved performance as
well as encouraging them for participation in organizational success. To the view point of
Hartman and Conklin (2012) employee motivation is force to gain competitive edge through
making employees encouraged for providing the best services. In the corporate scenario there are
various theories that are used for motivating employees, however ,a common fact of all such sets
is to gain employees satisfaction so that they can work in well improved manner. The
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investigation conducted by Mayfield and Mayfield (2009) the motivation theories that are based
on some factors that are essential to motivate employees in an organization. It has been augured
that employee motivation theories are used within hospitality organization to improve service
quality and to encourage people for providing the best services. The employee motivation theory
used in hospitality organization includes Maslow's need-hierarchy theory, Herzberg's two-factor
theory, Vroom's expectancy theory, Adams' equity theory, and Skinner's reinforcement theory.
As per the facts of Maslow's need-hierarchy theory, the employees can be motivated by
satisfying their needs in a hierarchical format, furthermore Cameron and Pierce (2002). defined
that needs of employees are divided into five major levels including physiological, safety, social,
self esteem and self-actualizing. Firstly , lower level of needs are to be satisfied before higher
level so as to motivate employees.
Herzberg's theory, on the other hand based on the factors that are important to motivate
employees such as motivators and hygienes. Motivator are intrinsic factors like as achievement
and recognition, job satisfaction that encourage people to work effectively. The hygiene factors
known to be extrinsic factors which includes pay and job insecurity.
Vroom's theory based on the fact that the efforts of employees somewhat leads to quality
performance and on the basis of performance employees are rewarded. The investigation
conducted by Cameron and Pierce (2002) found rewards can be provided in monetary and non-
monetary terms. The positive rewards significantly lead to high motivation among employees
hence, organizational performance increases.
On the other hand, Adams' theory stated that employees are to be provided with equal
opportunities in the workplace so their moral can be improved. However, it has been witnessed
that employees strive for equity among themselves, in an organization. The equal opportunities
provided to the employees of hospitality organizations is the best motivation for employees
Skinner's theory is also a most used theory at the workplace that defines a link between
behaviours of good performers and its positive outcomes in the form of organizational efficiency.
To the view point of Wang and Fesenmaier (2006) this theory also defines behaviour of non
performer and their negative outcomes and this is seen to be the best factor which motivates
both kinds of employees to work effectively. This theory further facts that managers should
positively reinforce employee behaviours so as to improve their performance. According to
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Omar, Jusoff and Hussin (2010) the high-quality leaders are capable to motivate employees for
accomplishing a good job and it has been also witnessed that most of the employees became
loyal when they are leaded by superior leaders. However, the importance of leadership in
motivating employees is found to be crucial in hospitality organization. Furthermore
Chadwallader, Jarvis, Bitner and Ostrom (2010) explained that in order to receive a better
response from employees it is good to deliver them choice of autonomy regarding execution of
new approach in innovations.
2.7 Factors affecting employee motivation in hospitality industry
The significance of employee motivation is long been witnessed within services
industry as most of the service are rendered by the people working in the industry. In this aspect,
employees motivation is the major force to survive in rapidly changing workplace. Hossain and
Hossain, (2012) the organization depends on performance of motivated employees as it is
important to improve organizational performance (Hossain and Hossain, 2012). The performance
of employees are influenced by their motivation level as well as it has been witnessed Park, Kim
and Krishna (2014) employees are motivated by providing attractive rewards and recognition
(Park, Kim and Krishna, 2014). To the view point of Halal (2003) The performance appraisal
system also affects the performance of employees, in case the employees are provided with
better pay scale and incentives than motivation can be achieved (Halal, 2003). Nonetheless , it
has been witnessed that reward system depends upon the size of organization.
The investigation conducted by Hossain and Hossain (2012) found that effective reward
and recognition system key of attaining employees motivation, however, inappropriate reward
and recognition lead to de-motivation among staff that affects the performance of company.
Karatepe and Tekinkus, (2006) there are some factors including work-family conflict and poor
job security de-motivated employees. In the investigation Mayfield and Mayfield (2009) it has
been found that high level of intrinsic motivation increases job performance as employees work
effectively in the organization. The employees can motivate by motivate employees by providing
better monetary compensation and good growth opportunities. Motivate employees provides
better productivity and they satisfy customer demand in an effective manner. It is because; their
goals are aligned with the success of business. Due to this aspect, they provide services from best
of their capabilities in order to achieve aims and objectives of the organization. Wang and
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Fesenmaier (2006) carried out research on employee motivation in the hospitality industry. In
accordance with their research, major factors that affect motivation level of employee is training
programs, growth opportunities, recognition and monetary and non monetary appraisals.
2.8 Conclusion
In the above literature review, findings of various authors on service quality have been
analysed so as to understand the concept of service quality as well as employee motivation. In
this literature review description is provided regarding conceptual framework of employee
motivation and service quality. Furthermore, techniques of employee motivation has been
discussed. The limitation of the present literature review is that is focused solely on the
hospitality industry.
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References
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