THE FACTORS THAT AFFECTING WORK ENGAGEMENT IN HOSPITALITY INDUSTRY

By

KWAN SOO YEE

Presented To

Department of Business Administration and Management

ABSTRACT
This study was designed to investigate the relationship between work engagement and factors such as organizational trust, internal communication, work-life
balance and rewards. Specifically, the study sought to achieve the following: (1) to determine hospitality industry workers' work engagement and to find out what
cause the work engagement of hospitality employee. Data are collected from secondary sources and also primary source by distributing questionnaires.
Statistical Package for the Social Science (SPSS) version 16.0 is used to conduct new findings in the relationship of work engagement and factors such as
organizational trust, internal communication, work-life balance and rewards.


PREFACE
This study is under the subject of UBMZ 3016 Research Project which is usually taken by the final year students of Bachelor of Business Administration (HONs) in
Universiti Tunku Abdul Rahman (UTAR). It is a compulsory subject to take for every student before they are graduating from university. This research project is
carried out for around half of a year. Students learn skills and ways to conduct research and questionnaires in completing this subject.
In this project, we chose "Factors That Affecting Work Engagement in Hospitality Industry" as this research topic. The main objective for this research is to
determine and studying the factors that engage the employee in Malaysia hospitality industry. Thus, this research is conducted to obtain in-depth
understanding about the determinants which can affect the employee's work engagement in order to reduce the employee turnover rate and increase
productivity of employee in hospitality industry.
Work Engagement plays a very important role in an organization to improve the efficiency and effectiveness of organization operations. We identified four
variables which affect the work engagement in this research and we believed that this study will enhance our learning, skills of research and additional knowledge.
Other than that, UTAR also given us a guideline for conducting the research and we make it as an overview of process to investigate in the research.
TABLE OF CONTENTS Page
Copyright Page i
Declaration ii
Acknowledgement iii
Table of contents - iv
List of Tables x
List of figures xii
List of Abbreviations xiii
List of Appendices xiv
Preface xv
Abstract xvi

CHAPTER 10
Introduction 1
10 Introduction - 1
11 Research Background - 2
12 Problem Statement - - - - 4
13 Research Objectives - - 5
131 General Objective 5
132 Specific Objective - 5
14 Research Questions 6
15 Hypotheses of the Study - 7
16 Significance of Study - - 8
17 Chapter Layout - 10
18 Conclusion - - 11

CHAPTER 20
Introduction - 12
21 Review of the Literature - 12
211 Work Engagement - - - 12
212 Organizational Trust - 15
213 Internal Communication - 19
214 Work-life Balance - 23
215 Rewards 25
22 Review of Relevant Theoretical Model 27
221 Organizational Trust - 27
222 Internal Communication - 30
223 Work-life Balance - 33
224 Rewards 35
23 Proposed Conceptual Framework - 37
24 Hypotheses Development 38
241 Organizational Trust - 38
242 Internal Communications 39
243 Work-life Balance - 39
244 Rewards 40
25 Conclusion - 41

CHAPTER 3
Research Methodology 42
30 Introduction - 42
31 Research Design - - 42
32 Data Collection Methods - - 43
321 Primary Data 43
321 Secondary Data 43
33 Sampling Design 44
331 Target Population - 44
332 Sampling Frame and Sampling Location - 44
333 Sampling Elements 45
334 Sampling Technique - 45
335 Sampling Size 46
34 Research Instrument - 46
341 Questionnaire Design - - 46
342 Pilot Test - 47
3421 Result of Pilot test 48
35 Constructs Measurement 48
351 Nominal Scale 49
352 Ordinal Scale - 49
353 Ratio Scale 50
354 Likert Scale 50
355 Origin of Measure of Construct 51
36 Data Processing - 53
361 Questionnaire Cheking - - 53
362 Data Editing 54
363 Data Coding 54
364 Data Transcribing - 55
365 Data Cleaning - - 55
37 Data Analysis - - 55
371 Descriptive Analysis - 55
372 Scale Measurement-Reliability Test 56
373 Inferential Analysis 57
3731 Pearson Correlations Coefficient 57
3732 Multiple Regression Analysis 58
38 Conclusion - - 60

CHAPTER 4
Research Results 61
40 Introduction - 61
41 Descriptive Analysis 61
411 Respondent Demographic Profile 61
4111 Gender 62
4112 Age - - 63
4113 Number of Changing Job - 64
4114 Service Length in Organization 65
4115 Service Length in Hospitality Industry - 66
4116 Number of Years Working with Current Supervisor - - 67
4117 Education Level 69
412 Central Tendencies Measurement of Construct 70
4121 Work Engagement 70
4122 Organizational Trust - - 73
4123 Internal Communication 74
4124 Work-life Balance - 76
4125 Rewards - 79
42 Scale Measurement - - - - - - - - - 80
421 Reliability Test 80
43 Inferential Analysis 82
431 Pearson Correlations Coefficient - 82
4311 Hypothesis 1 83
4312 Hypothesis 2 85
4313 Hypothesis 3 86
4314 Hypothesis 4 88
432 Multiple Regression Analysis 89
44 Conclusion - - 95

CHAPTER 5
Discussion and Conclusion 96
50 Introduction - 96
51 Summary of Statistical Analyses - 96
511 Descriptive Analyses 96
5111 Scale Measurement - 97
5112 Pearson Correlation 98
5113 Multiple Regressions 99
52 Discussions of Major Findings 100
521 Organizational Trust - 100
522 Internal Communication 101
523 Work-life Balance 102
524 Rewards 103
53 Implications of Study 104
531 Organizational Trust - 104
532 Internal Communication 105
533 Work-life Balance 106
534 Rewards 106
54 Limitations of Study - 107
55 Recommendations 108
56 Conclusion 109
References 110
Appendices 120


LIST OF TABLE Page
Table 1: UNWTO Report (2013) 2
Table 31: Table of Alpha Coefficient 4
Table 32: Origin Sources of Measurement 48
Table 33: Rules of Thumb about Cronbach's Alpha Coefficient Size 53
Table 34: Summary of Reliability Test (Pilot Test) 53
Table 35: Pearson Correlation Coefficient 55
Table 36: Multiple Regressions 56
Table 41: Statistics of Respondent's Gender 58
Table 42: Statistics of Respondent's Age 59
Table 43: Statistics of Respondent's Number of Changing Job 61
Table 44: Statistics of Respondent's Service Length in the Organization 62
Table 45: Statistics of Respondent's Service Length in Hospitality Industry
63
Table 46: Statistics of Respondent's Number of Years Working
with Current Supervisor 64
Table 47: Statistics of Respondent's Education Level 65
Table 48: Reliability Test for Each Independent Variable and The
Overall Variables 76
Table 49: Pearson Correlation Coefficient 77
Table 410: Correlations between Organizational Trust and Work Engagement
79
Table 411: Correlation between Internal Communication and Work Engagement
80
Table 412: Correlation between Work-life Balance and Work Engagement
82
Table 413: Correlation between Rewards and Work Engagement 83
Table 414: Result of Multiple Regression on Independent Variable and
Dependent Variable (Modal Summary) 84
Table 415: Anova 86
Table 416: Coefficient 86
Table 417: The Ranking of Independent Variables' Contribution 87
Table 51: Significance Level 94
LIST OF FIGURE
Page
Figure 21: Model by Yehuda Baruch, Pawan S Budhwar, Naresh Khatri 24
Figure 22: Model by Van Riel 27
Figure 23 Model by Linjuan Men 28
Figure 24 Model by Geurts, Taris, Kompier, Kikkers,Van Hooff, and Kinnunen
30
Figure 25: Model by NyamanH, SartiK, Sweins 31
Figure 26: Proposed Theoretical Model 33
Figure 31: Pearson Correlation Coefficient 55
Figure 32: Multiple Regressions 56
Figure 41: Gender 59
Figure 42: Age 60
Figure 43: Number of Changing Job 61
Figure 44: Service Length in the Organization 62
Figure 45: Service Length in the Hospitality Industry 63
Figure 46: Number of Years Working with Current Supervisor 64
Figure 47: Education Level 65

LIST OF ABBREVIATION
SPSS : Statistical Package for Social Science
UWES : Utrecht Work Engagement Scale
UK : United Kingdom
US : United States
ICC : Integrated Corporate Communication
SD : Strongly Disagree
D : Disagree
N : Neutral
A : Agree
SA : Strongly Agree
DV : Dependent Variable
IV : Independent Variables
LIST OF APPENDICES Page
Appendix 11 : Survey Questionnaires 120
Appendix 12 : Result 126

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