Research on Service Scape and Climate Effects on Hospitality Employees

This report examines the effects of service scape and service climate on hospitality (hotel) service employees, focusing on a case study of Marriott hotel. The research, based on both literature review and qualitative methods, investigates the perceptions of different authors and the impact of the working environment on employee behavior and performance. The study addresses key questions about the concepts of servicescape and service climate, their roles in employee satisfaction and performance, and strategies for improvement. Findings indicate that both servicescape and service climate significantly influence employee performance. The report includes an introduction, literature review, methodology, research findings, discussion, conclusion, and recommendations, providing a comprehensive analysis of the topic. The research aims to help management develop effective strategies for enhancing servicescape and climate to improve service quality and employee outcomes. The limitations of the study include time and resource constraints, with a focus on the hospitality industry and a limited sample size.

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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creates the very welcoming servicescape for arriving customers. Servicescape refers to man
made physical surrounding and built environment as opposes to social or natural environment. It
is very essential in hotel because it either suppress or enhance these emotions, it usually play
important role. Providing high quality servicescape is the significant factor that help to gain
competitive benefits, but one the other side poor quality servicescape make negative impact on
company profitability and productivity.
As per the view of Kang, Busser and Choi, 2018, service climate is basically a situation
where employees in an organisation interact with clients. However, it has been argued by other
author that internal as well as external situation which highly influenced the delivery of service.
As discussed by Lo, Wu and Tsai, 2015 service climate refer to worker’s perceptions of
practices, behaviour and procedures that get rewarded, expected and support with regard of
consumer service and its service quality. It is shared and collective phenomenon, this types of
climate is built in light of organizational practices centring on worker’s performance and
consumer services. Positive service climate enhances employee’s performance and productivity
in which they can be able to serve its best quality services to people effectively and efficiently.
As per view of Horng and et.al., 2016 unpleasant service climate impact on staff practices and
service that they serve to its customers, it also effects hotel financial performance and profit
margin the most. Service climate within hospitality industry directly effect on staff performance,
delivery of services and products and quality of goods which is not appropriate and suitable for
business growth and success for longer time period. Good relationship between management and
workers create pleasant service climate which help to motivate employees in hotel to perform
well and deliver quality services to guests. It has been argued by Kao and et.al., 2014, lack of
coordination, poor communication, unattractive infrastructure within hotel and negative
environment around workplace make negative service climate that lower down the moral of
workers in order to provide services.
Theme : To identify the role of service climate in improving employees satisfaction.
As per the perception of Park, Bufquin and Shapova, 2019, in context of hospitality
industry, servicescape is a touchable component which plays very crucial role in hospitality
sector. The author has also stated that director of organisation should concentrate on design of
Servicescape as this factor has great influence on the way the behaviour of both employees as
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well as customers. However, as per the investigation performed by researcher Dedeoglu,
Buonincontri and Okumus, 2018., findings of which reveals that Servicescape plays crucial role
in driving an organisation towards success. According to the opinion of Horng and et.al., 2016,
good service environment as well as best Servicescape design support service workers in giving
their best performance at workplace. Best Servicescape design and good environment at
workplace which assist service workers in delivering quality services as well as good experience
to guests.
As discussed by Park and et.al., 2019 servicescape within hospitality industry play
significant role as it help to increase worker working interest and support them in providing
better quality services to consumers which help to increase profit margin more than before. It
includes interior elements, like air quality, equipment, layout and music. In hospitality industry,
if management provide all the equipment to their workers which is required for particular
activities like preparing and serving food, staff help to deliver good quality services which
increase productivity and profitability of business. The layout of dining hall must be quite
different and unique which grab the attention of consumers. As per view of Lee and Lee, 2015.
3D layout of kitchen area reduce amount of distance staff travel by placing products and food
storage. Music is one of the essential interior elements within servicescape that help to support
staff in providing service better than previous. Music systems around work area enhance
worker’s performance and promote healthier living. Listening music during food preparation
change the behaviour of staff, they feel relax and enjoy the activity a lot. With the help of placing
music system around workplace, management will be able to reduce anxiety and stress among
their staff. It is one of the best way to support workers demotivate from challenges that they face
outside the office.
As per view of Bujisic, Hutchinson and Parsa, 2014.service climate also play crucial role
in context of helping staff for delivering and providing great quality services to guests.
Relationship between workers and management sets overall service climate within hospitality
industry. Poor relationship hinders business success and performance abilities of staff by
dragging morale down and limiting worker’s productivity, while the good relationship creates a
functional and positive work environment and service climate. So it defines clearly that service
climate play important role and help to motivate people at workplace efficiently. Positive service
climate in hotel provide full job satisfaction to employees which enhance their working interest
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and increase abilities for delivering quality products and services to large number of peoples.
Great energy and worker’s productivity can be created by a comfortable physical environment,
attractive and positive service climate. This energy finally, enhances performance, productivity
and success of business as well as workers.
According to Petzer and Mackay, 2014 in service climate attitude of senior staff
influence behaviour of other staff members on positive and negative side. If senior staff, make
good communication and coordination with other workers in firm they can be able to make all of
them comfortable and help to adjust in new working environment. As per view of Mishra and
Gupta, 2018 if senior staff do not communicate with other workers it directly effects on its
performance and productivity and they can switch job from other company as well.
Influence of Service climate on employee satisfaction in Marriott hotel
As per the thinking of Dedeoglu, Buonincontri and Okumus, 2018., Servicescape failure
can result into decline in perpetual experience of service public presentation and might lead to
the high level of dissatisfaction among the service workers in hospitality industry. However, it
has been argued by other authors that the Servicescape has great influence on employees in
hospitality industry only at the time of supplying services to guest. According to the opinion of
Guchait, Paşamehmetoğlu and Lanza-Abbott, 2015, unpleasant servicescape design as well as
negative service environment within hotel will lead to the high level of dissatisfaction in guest.
In simple words, author mean to state that the inappropriate Servicescape as well as bad service
environment might result into service failure which might give rise to other problems such as
reinstallation of service, service merchandise that could further have adverse effect on
employees attitude. According to the perception of Avan, Zorlu and Özmen, 2019, unique
design of Servicescape as well as service environment is playing important role in assisting an
organisation in gaining competitive advantage. However, it has been argued by other authors that
Servicescape plays very crucial role in designing of services in hotel. As per the thinking of
Kang, Busser and Choi, 2018., Servicescape as well as environment within hotel plays important
role in positively influencing people to bring improvement in their performance at workplace.
According to the opinion of Park, Bufquin and Shapoval, 2019, a good design of Servicescape
as well as good service environment plays crucial role in changing the perception of candidates
towards hotel industry. The author has stated that it is good physical environment at workplace
which will help companies in attracting more number of skilled as well as competent candidates.
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According to Nilsson and Ballantyne, 2014 servicescape influence on worker’s behaviour
in hospitality industry and it also effect business performance and growth. It only effective when
staff deliver quality services and change overall behaviour of individual. It is connected to
customers and employees as they are critical in role of servicescape, related to service quality of
hospitality industry. It is very important for industry to make pleasant servicescape design and
create positive service climate which help to enhance performance of individuals and increase
profit margin. Servicescape is defined as environment in which service is assembled and workers
and consumers interact, composed with tangible commodities that facilities communication or
performance of services. According to the view of Bujisic, Hutchinson and Parsa, 2014
servicescape is able to effect employee’s behaviour and its level of satisfaction regarding
business service. With the help of creating pleasant environment around workplace, management
can be able enhance worker’s behaviour and retain the most talented people with them for longer
time. Within hospitality industry guest wants to get fast food services, at this situation if
management keeping pleasant servicescape at workplace they can enhance workers performance
and help to make positive behaviour which support staff to provide its customers fast food
services efficiently.
Lee and Lee, 2015 stated that lack of servicescape make negative impact on staff
behaviour and decrease their interest of working within hospitality industry. It is used as an
significant measurement tool to understand staff behaviour, if management cannot make
effective communication with its workers and do not provide all the facilities in context of health
and safety it directly effect on staff behaviour and performance as well as business growth. As
per view of Horng and et.al., 2016, well designed layout and setting for parking causes service
experience to be pleasant from both employees point of view as well as from customer’s point of
view. Whereas the inefficient design and layout may provoke frustration and impact on
behaviour of people negatively. Design of hotel's physical surrounding is capable to clarify
behaviour and roles of workers, design of facilities in hospitality industry is able to present in
which parts of servicescape workers is only permitted. According to Hatipoglu and Inelmen,
2018, lack of positive environment around workplace make negative impact on staff behaviour
and performance abilities. Poor working conditions affect employee’s behaviour and ways that
they performed in industry.
Strategies that can be applied for enhancing service climate in Marriott Hotel
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