Employee Motivation and Rewards in Hotel Industry (Case Study Example)

What the Managers Can Do to Motivate the Employees

Hotel industry is one of the most dynamic businesses in the world. The factors, such as globalization, technology, and increased competition as well as economic changes, greatly affect this industry. Recent studies indicate that there has been an escalating workers turnover in the given type of business. The management introduces the strategies of motivating the workers in order to retain them as well as enhance utmost quality of services provided by the skilled individuals. The people are motivated through monetary and non-monetary incentives and interest, whereas they differ from one age group of the workers to another. Unlike young employees who are more interested in monetary incentives, the older workers are mostly involved in non-monetary incentives, such as free medical services. Motivation and reward improves the performance of the workers. The managers in the hotel industry have the obligation to ensure continuous worker motivation for perpetual high quality services.


The tourism and hospitality are the most competitive industries in the world. It requires involvement of creative managers who will implement all the strategies of rewarding and motivating the employees. To maintain productivity and quality services, the business has to respond to the changes by adjusting to them in order to remain viable in the industry.

The paper aims at evaluating different strategies that human resource managers in the tourism and hospitality organizations use to reward and motivate the employees to improve their performance and relevant theories as well as the effects of those strategies.

Problem Background

Previous studies by the world tourism organization showed that the economic recession in the world increases global travel, which is likely to decline by 4% (Testa & Sipe, 2012). This adversely impacted the hotel industry and posed problems to the managers to fulfill the needs of the organizations in the related field. The economic recession exerted, pressure because they had an obligation to maintain high standard products and services to remain competitive in the hospitality market (Testa & Sipe, 2012). Organization management has to overcome all the barriers that can hinder profitability and enhance positive impacts on the industrial market as well as retaining talents. Managerial performance has a greater influence on the overall performance of the organization. It is essential for hotel businesses to establish effective management that will enhance the relationship of the workers, guest satisfaction as well as the community outreach (Hsiao, Chuang, Kuo, & Yu, 2014).

Purpose of the Study

This multiple qualitative studies aimed at defining the strategies of motivating the workers that the hotel management incorporates to enhance their performance. This study has an implication for constructive changes in the society that include the initiating control to inspire the employees to improve their achievements and to retain the profitability of the entire organization. When the leaders develop and motivate their subordinates, they actively participate in the social change. The developed staffs later emerge as leaders and contribute to the society.

Significance of the Study

The study will evaluate the industry of hospitality, especially in the sector of hotel business, where demand for full-service is high by enhancing the practices that will help the directors to inspire the workers who have possibility of becoming leaders in the future. The study aims at enhancing practices of businesses by assisting the management and their teams to apprehend the importance of improving skills and knowledge of the valuable workers who will later retain them. The research study will assess the corporate and its impact on the society, help in enhancing business practices and facilitate the social changes.

Literature Review

Organizations face significant variations resulting from globalization and increased competition as well as technological advances (Crouse, Doyle, & Young, 2011). These factors have forced businesses in diverse industries to develop existing staff through professional education, knowledge, and skills. Consequently, the hotel industries need worker withholding in order to provide to the necessities of the constantly aggregating amount of occupational tourists who rely on the facilities of the hospitality industry. The managers in the hotel business appreciate the worth of their staffs, and the management improvises various means to diminish the rate of employee turnover (Arendt, et al., 2012).

Demand for higher performance facilitates the association between the motivation and strategic goals of an organization. A vital concern for hotel directors is deciding means of motivating and inspiring the staffs. Training and inspiration have a substantial influence on job enactment (Holden & Overmier, 2014). The employees are inspired when the directors recognize their distinct goals and requirements as well as their way to accomplish them.

Job enactment of the worker is the catalyst that enhances the efficiency of the organizations. The link between employee motivation and performance affects organizational efficiency. Human capital is optimized when the management understands the strategies of motivating their staffs. Consequently, the organizational and individual levels of performance are highly influenced by vigor or job performance, which is the central factor of motivation (Chinomona & Moloi, 2014). This encourages employees to enhance the determination to complete jobs and goals, and, consequently, aggregate the role-enactment (Carmeli et al., 2009). Vigor in the workforce is prone to the effects of internal and external factors.

Perception of the workers regarding organization depends on how they fit into the environment. This defines the way, in which the workers recognize organizational objectives and effects behavior of the employees in the related environs (Sun et al., 2014). Lau & Martin-Sardesai (2012) defined that the managers have the opportunity to learn more about their workers in order to enhance the accuracy of performance measurement systems.

Performance controlling is a way of attaining improved outcomes from the whole corporation as stated by Samnani and Singh (2014). The theory of performance management includes dealing with the activities of workers motivating them to meet the goals of the entire organization (Haustein, Luther, & Schuster, 2014). Practices of performance management influence the behavior and attitude of the employees. These are the factors that determine the degree of job performance; thus, it is important for directors to improve the relationship between the bosses and the staffs to enhance their engagement in the work process (Samnani & Singh, 2014). Additionally, according to Korzynski (2013), building a favorable environment of empowerment and trust, setting development and performance goals, giving feedback and recognition as well as conducting appraisals are necessary activities of performance management.

Fairness and trust are other factors that influence the achievements of the employees in the hotel industry. They affect the degree at which the workers engage in the working process, enhance their motivation and performance. It is easier for an organization to promote workforce engagement if it has established the culture of fairness and trust (Mone et al., 2011).

The hotel managers should put much effort in order to aid the staffs work to their utmost prospective. Working stress and performance pressure are directly proportional to the rapid increase in the rate of job tension (Samnani & Singh, 2014). Moreover, it may be harmful for the enactment and efficacy of the business. On the other hand, performance stress can inspire the teams and individuals to work better (Garder, 2012).

An escalation in enactment depends on the type of performance stress and constant worry as enactment stress is harmful for the workers (Samnani & Singh, 2014). Occupational stress has an emotional impact on the workers achievements and their withholding, efficiency, and managerial role. Job-related stress leads to low inspiration (Korzynski, 2013). The management capability to apprehend and cater for the necessities of their staffs influences their productivity.

Theories of Motivation

Various theories of motivation include Maslow theory, social equity theory, and expectancy theory among others. However, the paper concentrates on expectancy theory. This argument was presented by Vroom in 1964. He states that all the elements that are relevant to the individuals motivate them. The motivation of workers inspires them to work hard in order to accomplish their goals. Efforts of the employees always depend on the factors related to the working environment. The motivational factors that facilitate the performance of the workers towards better outcomes are associated with value. Each value is related to valence (Dickert, Sagara, & Slovic, 2011).

Motivational Model

A business model describes the associations between various aspects of business. The model is imperative in assisting the managers to establish a logical relationship in order to avoid uncertainty. Despite the fact that there are different types of motivation, the study is grounded on the behavioral engineering model that was presented by Gilbert in 1978. The model relates to the measurement of people’s behavior towards performance competency systems and management. The attitude of workers affects their performance, which is an important aspect of motivation, work, and knowledge. The strategies of motivation raise the necessity of employee’s behavior that impacts the shared information through technology, skills as well as knowledge. The given model represents individual, environment, and the factors that influence information. Gilbert suggested that individual capability is a function of performance worthiness, the accomplishment of value as well as the cost of behavior.

How Employees are Motivated

Motivation inspires the employees to work better. They obtain the energy from the other workers or from the environment. They are motivated by various premiums, nonfinancial rewards as well as suggested changes in their job specifics (Legault & Inzlicht, 2013). The factors such as individual needs, the fairness of reward, reinforcement power, and the expectations of getting premium impact the financial rewards.

Types of Performance-Based Financial Rewards

  • Bonuses related to annual performance, which strengthen appreciation of personal achievements while aiding the workers to focus on accomplishing personal performance, objective, and appreciation.
  • Financial incentives for groups strengthen societal necessities by gratifying success of the team and, consequently, directing the staffs to the work in a group while accomplishing collective goals.
  • Tips to the individuals can inspire great client service, while combined tips can inspire attendants to work as a team.
  • Giving the staffs a chance to own the company through shares can help them understand how their individual success is enhanced by the success of the entire business, which can fulfill the required achievements and social needs.

Nonfinancial Rewards

Non-financial rewards have an impact on the behavior of an individual. In addition, they ensure that money rewards could not be bought in any organization. The awards include praise, recognition, favorable working environment as well as the personal growth. Business directors use recognition programs to appreciate exceptional performances by the workers, suggestions regarding innovation, the length of service, safety and sales performance as well as attendance among others. Credit creates a memorable experience that lasts for longer period. For example, Fairmont Hotels developed a recognition program aimed at reinforcing their culture of services.

In addition to recognizing the workers, it is essential to make the job pleasurable and satisfying. The employees should be pleased to fulfill their tasks in order to enhance their productivity. They should be satisfied with the working conditions, their relationships with the manager as well as the remunerations. The job can be attractive to the workers if they have an opportunity to learn and develop professionally and individually. Moreover, it is necessary to treat them with respect, satisfy social needs of the workers as part of the job as well as ensure that every task is important by defining precisely its purpose in the business.


The hotel industry is a dynamic and proper type of leadership, where motivational strategies are necessary. The daily performance of the employees should be properly managed by the leaders to enhance a favorable environment in order to facilitate higher engagement by the workers. Samnani and Singh (2014) demonstrate that there is a significant constructive correlation between the execution of performance management and the productivity of the workers. Mone et al. evidently showed that proper performance management enhances the engagement of the employees. The managers should build flexibility, confidence as well as supportive social networks, which are the main enhancers of staff engagement (Mone et al., 2011).

Stress in the working environment of the hotel industry has adverse effects on the employees. In the study conducted by Kofoworola and Alayole (2012), they emphasized that it is imperative for the managers to be sensitive in order to detect easily the early signs of stress such as depression, fatigue, frustration, anger, isolation, and substance abuse as well as escalating arguments. When the managers are aware of the symptoms and causes of stress in the working place, they are capable of improvising possible ways to counteract the situation, which has a higher probability of deteriorating job performance of the employees. Stress in the working place affects the productivity, performance, and the retention of the workers as well as the fulfillment of the entire organization. In their work, Kofoworola and Alayode identified several strategies that the managers can use to neutralize stress and its effects. The suggested plans include mental training, rest, and diet, discussing problems, physical activities such as games, reducing commitments, offering professional help, such as counseling, religious orientation, as well as developing gratitude towards the workers.

In every organization, the managers should be aware of the entire factor that determines motivation of the employees. It can help them to decide whether it is necessary to optimize human capital for the profit of the business by incorporating effective strategies of motivation that include individual-determination (Legault & Inzlicht, 2013). Some leaders exert unwarranted pressure on the workers performance, which impacts their productivity. Performance pressure from the directors can decrease the motivation of the employees. Moreover, it can erode the trust between the managers and their subordinates. Pouramini and Fayyazi (2015) argue that there is a significant relationship between the motivation of the workers and their behavior, how they trust their leaders and working environment perception. They emphasize that the employees should believe their bosses so that they can modify and influence their behavior.

Fairness is another factor that influences the performance of the employees in the hotel industry. It affects the degree of work engagement and can have an effect on their motivation and performance. It is easier for an organization to promote workforce engagement if it has a culture of high levels of fairness and trust (Mone et al., 2011). The managers use diverse ways to measure the performance of the workers, which can affect the procedure of fairness. Employees are motivated, when the managers express fairness with them. If they feel that the leaders are not fair, the level of motivation will decline drastically (Lau & Martin-Sardesai, 2012). To enhance performance measurement system, it is important for the leaders to establish personal experience with the employees. Lau & Martin-Sardesai (2012) confirmed that there is an opportunity for the managers to learn more about the workers to enhance the accuracy of performance measurement systems.

Other studies indicate that money is the key motivating element among all the workers in the hotel industry. They depict a higher level of satisfaction as well as increased performance and productivity level, when rewarded financially. Some studies establish that there is variation in preferences of motivation among the employees of various age groups. For example, young workers portrayed higher preference of monetary incentives than the older employees. Unlike the old workers, young people showed little interest in the free medical services and insurance covers among other non-monetary incentives.


  • Managers in the hotel industry should evaluate the factors that encourage employees to perform at their utmost levels
  • Managers should determine which internal and external incentives influence the behavior of the workers
  • Management should develop measures that will ensure continuous improvement services offered in the industry
  • Management should use the means of attracting the workers in the working place that they are inspired by their individual achievements.


In the hotel industry, motivation is a fundamental factor because it ensures provision of high-quality services to the clients. It is the willingness of individuals to improve their performance effort and to meet the specified organizational requirements as the factor of the employees working efficiency. All the workers in every organization have desires and necessities, and when the given business entity meets those demands through inspirational incentives, their performance and productivity is enhanced.

In addition to monetary incentives, there are various other incentives, which motivate the workers in the hotel industry. The capability of the management to interact with the staffs in order to create a favorable working environment is paramount. It helps the manager to detect occupational stress earlier and improvise strategies to counteract the stress, hence improving the workers’ engagement and increasing total productivity of the business. Additionally, trust between the subordinate staffs and the management as well as fairness significantly motivates the employees enhancing the quality of services in the industry. It is important for the management to provide a favorable environment of empowerment and trust, set the development and performance goals, give feedback and recognition as well as different appraisals. These are necessary activities of performance management.

The study has various limitations; it relies on the work of other people, and their findings could be biased. Moreover, most data in the studies was one-sided and focused on what the management can do to motivate the employees. Finally, the interest towards certain factors of motivation differs from one age group to another.