Factors Affecting Employee Performance in The Hospitality Industry in Batam City, Indonesia

Factors Affecting Employee Performance in The Hospitality Industry in Batam City, Indonesia

Muhammad Donal Mon, Friska Ariani Br Sitepu
Faculty of Business and Management. Universitas Internasional Batam

DOI: https://dx.doi.org/10.47772/IJRISS.2023.70785

Received: 26 June 2023; Revised: 10 July 2023; Accepted: 13 July 2023; Published: 10 August 2023

ABSTRACT

This his study sought the analyze was conducted the effect of work motivation, leadership style, training, organizational culture and customer satisfaction on employee performance in hotel employees in Batam City. This research is descriptive with a quantitative approach. The research data collection technique are carried out by distributing questionnaires to hotel employees and as many as 230 data were collected, then the data was tested using the SPSS program software. The results of the study show that the hypothesis proves that work motivation, leadership style, training, and customer satisfaction have a positive effect on employee performance that mean the higher the value for these variables will improve employee performance. It is intended from the test results for a significance of less than 0.05 while organizational culture in this study is not proven to have an effect on employee performance with a significance value of 0.860 greater than 0.05 and the F test significance value of 0.000, the Adjusted R Square test result is by 0.412, meaning that the variables in this study can explain the performance of employees at hotels in Batam by 41.2%, the rest is explained by other variables not included in this study..

Keywords: Motivation, Leadership, Training, Employee Satisfaction, Employee Performance

INTRODUCTION

In 2019 the Indonesian are a target of 20 million tourists from abroad who will be pursued through the 3A program, namely Attractions or natural wealth, Amenities or accommodation and Access. Indonesia are received quite a proud appreciation from the world, such as Indonesia being ranked 9th in the version of The World Travel and Tourism Council (WTTC) in 2018, Indonesia has also being one of the most beautiful countries around the world based on the Rough Guides survey in 2019. This makes Indonesia has extraordinary attractiveness and the tourism industry is one of the fourth largest contributors to incoming money for the state after palm oil, oil and natural gas and coal mining (Basorudin et al., 2021). However, in 2020 and 2021, Indonesia and even the world will experience a decline in tourist arrivals, both domestic and foreign tourists due to the pandemic Covid-19 that has hit the world.

Quoted from BPS data for 2020 the tourism industry in Indonesia, based on the percentage of occupancy rates of star-rated hotel rooms during the Covid-19 period, as of January 2020 there was a decrease of 49.17% compared to December 2019 for hotel room occupancy, the decrease occurred by 10.22%. , in February the decrease increased by 0.05% from January 2020, in March 2020 it decreased to 32.24% compared to February 2020, in April 2020 it fell to 12.67%, then in April 2020 the occupancy rate of star hotels weakened in Indonesia in April 2020 was 46.72% when compared to December 2020 (Paramita, 2020).

The tourism industry itself has attachments to other sector of the economy, this is because the tourism industry is a combination of phenomena and reciprocal relationships because in tourism activities there are interactions with tourists, suppliers, the government with the aim of developing tourism in certain areas involving local communities. In developing and maximizing tourism, the services provided to tourists from quality hotels in Indonesia cannot be separated from the collaboration of private companies, the government, stakeholders, the role of the community. The survey results from the National Labour Force (Sakernas), the tourism industry continues to absorb the national workforce (Berliandaldo et al., 2021).

Human resource management activities are recruitment, selection, employee career planning (Blayney et al., 2020). Several studies have concluded that HRM directly affects employee performance (Nieves & Quintana, 2018). Policies from human resource management to recruit and select are important things to form a quality work ecosystem by providing a balance for employees. Based on the background and previous research, the problem formulation that was concluded in this study is that Indonesian hotel industry employees still have the ability to speak English in the lowest position in countries that are members of the ASEA Economic Community (Bali, 2019). The study sought the analyze was the effect of work motivation, leadership style, training, organizational culture and employee satisfaction on the performance of hotel employees in Batam City.

LITERATURE REVIEW

Motivation is a mixture of various activities that have a function in every individual living thing and involves various combinations of strategies (Folalu & Aneke, 2020). Motivation is also the strength of a worker in acting and achieving certain goals (Paais & Pattiruhu, 2020). Motivation is widely discussed in the subject of behavior in organizations (Ali et al., 2019). Employees who have been motivated have the same goals as other employees in the organization and try to achieve their goals (Aafis et al., 2010), (Mon & Jennifer, 2022). Differences in backgrounds and norms adopted by employees also affect behavior and affect the level of motivation of these employees to work. The impact of motivation and influence on employee performance in the hotel industry makes employees their work effectively and increase the productivity from Ahmad & Manzoor, (2017); Setiawan, (2020); Folalu & Aneke, (2020); Osman et al., (2016). (Paais & Pattiruhu, 2020) Motivation and leadership have a positive and significant effect on employee performance but job satisfaction does not have a positive and significant effect on employee performance.

An effective leadership style must be adaptable to a work environment and situation. According to Aisah (2020), leadership style affects activities, especially in an organization in the process of controlling humans or groups of workers in building a common goal towards successful interaction of various individual differences (Paais & Pattiruhu, 2020). Leadership style has effect on employee performance with positive and significant in corporate organizations (Pancasila, Haryono, & Sulistyo, 2020). Leaders are also referred to as someone who is able to bring about changes that lead to the good of employees and the company. In leading companies and employees, leaders are expected to be able to provide solutions to conflicts that occur within the company is research from Sandhu et al., (2017); Chei et al., (2014); Paais & Pattiruhu, (2020). (Mon, 2019) the success of a company is not only determined by a leader but also determined by the organizational structure that is designed, such as the technology used and the level of the organizational structure itself.

The aim of training is to increase the understanding and ability currently possessed by employees to carry out tasks to full fill organizational goals. The effect of training programs on employee performance has been shown to be effective in building a learning environment and training abilities and overcoming challenges easily and precisely (Analysis et al. , 2010). Employees are trained to be productive, imaginative and consistent in improving work. Training is considered an important tool for increasing overall organizational productivity (Ahmad & Manzoor, 2017). Training can be carried out internally or externally with three objectives, namely improving employee performance, achieving organizational goals and successfully competing in the business world, Hendri, (2019). Good and well-planned training increases the factors that affect quality employee performance. Another goal of having sufficient training for employees is to keep employees abreast of any changes in the future and reduce anxiety about trends that are currently developing research Ali et al. ., (2019). (Muchsinati & Jeanny, 2021) on the same research object in the previous year showed employee training had effect on employee performance with a positive and significant either directly or through mediation on job satisfaction.

Corporate culture becomes important to coordinate organizational activities within the company. Culture also becomes a guideline in the company’s organization regarding things that will and will not be done (Paais & Pattiruhu, 2020). Organizational culture is value and managed by the organization, the patterns of behavior and the basic philosophy of its founders, which establish rules that are used as a guide in thinking and acting to achieve organizational goals (Golung, 2013). Organizational culture is the values acquired and managed by the organization, the patterns of behavior and the basic philosophy of its founders, which establish rules that are used as a guide in thinking and acting to achieve organizational goals (Golung, 2013). Culture of Organizational and ethical leadership in the industry shipping have influence on organizational and employee performance a positive and significant, this shows the importance of paying attention to the culture that exists within an organization (Evi Silvana Muchsinati & Mea, 2022)

Employee satisfaction is satisfaction with their work. According to Siengthai & Pila-Ngarm (2017). Employee satisfaction is driven by satisfied employees at work and motivated so that it affects employee performance more effectively and productively. This also causes a low number of turnover due to satisfaction from employees (Eliyana, Ma’arif, & Muzakki, 2019). Employee satisfaction is a series of employee perceptions that will influence employee attitudes and behavior while working (Hendri, 2019). According to Tsui et al. (2013). Employees with skills and knowledge in the workplace will achieve job satisfaction. When job satisfaction is fulfilled it will result in positive employee performance. The benchmark for employee satisfaction must be assessed from several aspects of the work carried out by research employees from Otoo et al., (2019); Rajalingam & Jauhar, (2015) Pawirosumarto et al., (2017); Al-Ali et al., (2019)

The research variable is a value, the activity of an object that has many variations between one variable and another that has been determined by the researcher to study and seek information and draw conclusions (Ridha, 2017).

Conceptual Framework

Hypothesis

According from the literature review above, the hypothesis in this study is:

H₁ : Motivation has a positive and significant effect on employee performance

H₂ : Leadership has a positive and significant effect style on employee performance

H₃ : Training has a positive and significant effect on employee performance

H₄ : Organizational culture has a positive and significant effect on employee performance

H₅ : Employee satisfaction has a positive and significant effect on employee performance.

RESEARCH METHODOLOGY

This research is a quantitative research. The research was conducted data in the form of a questionnaire to see the effect of one variable on another. The research located in Batam City, Indonesia. Considering that the Batam City area has many hotels spread out because it is one of the international entry points for foreign tourists besides Bali. Sampling used a questionnaire as a data collection instrument with the characteristics of the respondents.

The population of this research is hotel employees in Batam City, Indonesia. The number of samples in this study refers to Hair et al where the number of questions on the questionnaire is between 5 – 10, so in this study the sample is 230 respondents. The data collected was processed using SPSS (Statistical Package for the Social Science) to test the effect of each independent variable on the dependent variable. The analytical techniques used in this study include validity testing, reliability testing, these two tests are instrument quality tests to ensure the measuring instrument matches the variables used, the classic assumption test consists of a normality test, multicollinearity test and heteroscedasticity test, these three tests ensure there is no data deviation in the respondents’ answers in the study, if they meet the requirements then a hypothesis test or regression test is carried out and finally the coefficient of determination test, to determine the effect of the independent variables as a whole affecting the dependent variable in this study.

RESULTS AND DISCUSSIONS

The data was obtained through a questionnaire of 230 respondents who are hotel employees spread across the city of Batam. From these data previously tested validity and reliability of the questionnaire results declared valid and reliable and can be used in the process of further research. For the outlier test there is no outlier deviation so that all data from respondents can be included in the hypothesis test or regression test. The data collected as many as 230 processed will be shown in the table below in the form of respondent demographics

Table 1 Demography Respondent

In processing the data in this study the classical assumption test was carried out where this test to ensure that data deviations did not occur consisted of a normality test, multicollinearity test and heterotest, where the three tests were a requirement to continue the regression test. The test results show that the three tests meet the requirements. So that the regression test can be continued. The results of the three tests that have been carried out:

Normalitas Test

Table 2 Collinearity Testing

Test Results Collinierity

If the Collinearity testing for Tolerance value is above 0.1, it can be concluded that the data does not have multi co linearity and the VIF value is below 10. The test results of the regression test or hypothesis test can be seen in the table below

The terms of the hypothesis are accepted Sig value is less than 0.05, and vice versa if the sig value is greater than 0.05, the hypothesis that was previously proposed is rejected or does not meet the criteria. Based on the results of the analysis on the regression test above from the five independent variables, namely motivation, leadership style, training, and employee satisfaction, have a positive and significant effect on employee performance. While one other variable, organizational culture in this study did not prove to have a positive and significant effect on employee performance.

Each hypothesis test value is as follows: hypothesis 1 motivation has a positive and significant effect on employee performance with a small significant value of 0.05 which is equal to 0.025, the results of this study support the results of previous studies. Furthermore, for hypothesis 2, leadership style on employee performance with a significant value of 0.028 and t count of 2.266, the research results also show a small significant value of 0.05. Hypothesis 3 for the training on employee performance significance value are 0.000, meaning that the 3rd hypothesis also supports previous research. The organizational culture variable is not proven to support previous research due significant value is above than 0.05 with a result of 0.860, so the fourth hypothesis is not support with previous research. The 5th hypothesis of employee satisfaction has a positive and significant effect on employee performance with a significant value of 0.018, meaning that this hypothesis also supports previous research.

Based on the results of the adjusted R square test to determine the model’s ability to explain the dependent variable, it can be seen from the test results that the coefficient of determination (R2) in the table above is 0.412. The higher the value of the coefficient of determination shown, the more precise the performance measurement means that the higher the value produced, the better the model proposed in the study. Based on the test results above, it can be concluded that the value of Adjusted R Square (coefficient of determination) is 0.412, which means the effect of the independent variable (X) on the dependent variable (Y) is 41.2%. the remaining 58.8% is influenced by other variables except in this study. This means that in future research it can add other variables besides those that have been tested in this study.

CONCLUSIONS

Based on the results of the analysis and testing of the hypothesis, it proves that there is a positive and significant influence between work motivation, leadership style, training, and employee satisfaction on employee performance. This is indicated by the results of the t test which is more than t table (1.96). For each variable besides the significant test, we can also see for the regression on each variable, the motivational variable t test is 2.140 greater than 1.96, meaning that motivation has a positive and significant influence on employee performance, leadership style t count is 2.266 also shows the value of t count is greater than t table so it can be concluded that leadership style has a positive and significant effect on employee performance. Employee training has a t-test value of 4.136 compared to t-table. This shows a positive and significant effect on employee performance. In contrast to organizational culture, the t count is smaller than the t table, so it can be concluded that organizational culture has no significant effect on employee performance. The last variable is employee satisfaction, the calculated t value is more than t table with 2, 613 research results for this variable are also proven and in accordance with the hypothesis.

The limitations of this study are that this research is still limited to research on the tourism industry in Batam City, Indonesia and uses samples from different hotel employee data so that they tend to vary and this research cannot be directly applied to a particular hotel. Recommendations that can be given from this study are to be able to use different variables to improve employee performance, especially in the hotel industry outside Batam, such as areas that are well-known for the hotel industry in Indonesia.

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