Review of related literature and studies

REVIEW OF RELATED LITERATURE AND STUDIES

Performance evaluation reflects an employee’ actual job performance levels, but in order to get a true picture, the rating must be accurate. Accuracy is the primary goal of appraisal system. Employment decisions that are based on accurate ratings are not valid and would be difficult to justify if legally challenge. Moreover employees ten to lose their trust in the system when ratings do not accurately reflect their performance levels, and this cause morale and turnover problems it also hinders on their opportunity for advancement. In this study, some related studies and literature will be cited enable to enrich understanding of the researcher. The first part of the discussion is defining Employee performance on the job. The second pert is on the level of performance of an employee when career is not suitable to the field you are working with. The third section of this chapter discusses some literature review related to this field of study. 2.1 Literature Review on the Job Performance

The study of job satisfaction is a topic of wide interest to both people who work in organizations and people who study them. Job satisfaction has been closely related with many organizational phenomena such as motivation, performance, leadership, attitude, conflict, moral etc. Researchers have attempted to identify the various components of job satisfaction, measure the relative importance of each component of job satisfaction and examine what effects these components have on employees’ productivity.1 Performance is through which managers ensure that employee activities and outputs are congruent with the organizations goals (Noe et al:2006 as cited by Adi).2 Armstrong (2000 cited in Kagari et al, 2010 and also stated by Adi) state organization performance is a means of getting better results from the whole organization or teams or individuals within it, by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.3 Lewis (1998 cited in Harzing, 2004 and Adi) performance management is a term used to describe an integrated set of techniques which have had an independent existence under the own names.

4 Divide performance involves: (1) links to organizational strategy (2) setting individual performance goals (3) providing regular feedback on progress towards those goals (4) providing opportunities for improving (5) Linking results and rewards as cited by Adi. Spector (1997 as cited by Parvin) refers to job satisfaction in terms of how people feel about their jobs and different aspects of their jobs. Job satisfaction is the extent to which employees like their work. It is an affective or emotional response towards various aspects of an employee’s work.5 C.R.Reilly(1991 as cited in the study of Parvin) defines job satisfaction as the feeling that a worker has about his job or a general attitude towards work or a job and it is influenced by the perception of one’s job. Job satisfaction is the sum of job facet satisfaction across all facets of a job.6 Abraham Maslow (1954) suggested that human need is a form of a five-level hierarchy ranging from physiological needs, safety, belongingness and love, esteem to self-actualization. Based on Maslow’s theory, job satisfaction has been approached by some researchers from the perspective of need fulfillment.7 2.2. Literature Review on Hospitality Industry

The hospitality industry is known to have a high turnover rate. Stalcup and Pearson (2001 as cited by Brown) examined the causes of turnover with hospitality managers. The authors found 86% (n= 206) of hospitality managers who left a hospitality job stayed within the industry. Following up on Stalcup and Pearson’s research, Walsh and Taylor (2007) concluded the remaining 14% of the talented managers left the industry for good.8 Blomme (2006 as cited by Brown) found that approximately 70% of The Hague hotel school graduates were no longer in the hospitality industry after 6 years of graduation. In addition, He also found that almost 66% (n = 159) of first year hospitality students intended to enter the hospitality industry and 17% (n = 78) of graduates did not intend to work in the hospitality industry. Walsh and Taylor (2007) indicated retaining educated staff is becoming a major challenge in the hospitality industry; this aligns with Blomme et al.’s results.9 Cho and Erdem (2006 as cited by Brown) received usable responses from 106 certified hotel administrators and certified human resources executives (14% response) by the American Hotel and Lodging Educational Institute. The authors examined employee relations programs and organizational performance.

The authors measured organizational performance by using employee turnover, labor productivity, and revenue per available room. Actual turnover numbers were provided by the administrators and executives. The authors found having a suggestion program and productivity of employees significantly predicted turnover rate for only managerial employees. The authors suggest giving managerial employees the opportunity to provide suggestions for organizational improvement as managers without this opportunity are likely to leave the organization.10 Choi (2006) examined factors that directly and indirectly impact turnover intentions. The author received 375 completed surveys (75% response). Turnover intention was measured by comparing the intentions to seek a new job and the intentions to leave an existing job. The authors suggested all measured factors (accuracy of job information, need rewards match, comparison with others, relationship quality, job satisfaction, and organizational commitment) could be used to explain turnover intention.

The authors suggested providing incentives to employees and attempting to increase organizational commitment by ensuring employees feel they are an asset to the organization.11 Compensation is also a factor in the performance of employee and job satisfaction. Thus there are employee who do not perform well because they are not well-compensated. Job satisfaction and dissatisfaction not only depends on the nature of the job, it also depend on the expectation what’s the job supply to an employee (Hussami, 2008 as cited by Parvin).12 Lower convenience costs, higher organizational and social and intrinsic reward will increase job satisfaction. Job satisfaction is complex phenomenon with multi facets influenced by the factors like salary, working environment, autonomy, communication, and organizational commitment. Different people interpret compensation differently. In this paper compensation, reward, recognition, and wages are terms used in different situations (Zobal, 1998 as cited by Parvin)13. The compensation is defined by American Association is “cash and non-cash remuneration provided by the employer for services rendered” (ACA, p. 9).

Salary was found to be the prime factor for the motivation and job satisfaction of salaried employees of the automobile industry from the results of the survey by Kathawala, Moore and Elmuti (1990 as cited in the study of Parvin).14 The survey tried to assess the various job characteristics and the way the employees ranked them as motivators and satisfiers. The results showed that compensation was ranked as the number one job element for job satisfaction and increase in salary for performance was ranked as the number one job element for motivation. Compensation is very valuable tool for retention and turnover. It is also a motivator for an employee in commitment with the organization which in result enhances attraction and retention. It also works as communicator when it is given to employee against his services which shows how much an employee is valuable for its organization.