The Impact of Motivation on Employee Performance in the Selected Hotel in Kuala Lumpur

The Impact of Motivation on Employee Performance in the Selected Hotel in Kuala Lumpur

Kanegeswari Balan¹, Fazilina Darus², Khursiah Abd Aziz³

^1,2UNITAR University College Kuala Lumpur

³Asia e University

DOI: https://dx.doi.org/10.47772/IJRISS.2025.914MG00149

Received: 28 July 2025; Accepted: 03 August 2025; Published: 06 October 2025

ABSTRACT

This study examines the critical impact of motivation on employee performance within Malaysia’s dynamic hotel industry. In the highly competitive service sector, employee performance directly influences customer satisfaction and organizational success, making motivation a pivotal factor. Although the importance of employee motivation is widely recognized, its specific effects and effective application within the Malaysian hotel context remain underexplored. This research aims to address this gap by applying established motivation theories such as Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory (Herzberg et al., 1959), and Self-Determination Theory. This study collects data through quantitative surveys from 52 respondents among hotel employees and key managerial staff across selected hotels in Malaysia. The anticipated findings are expected to contribute significantly to both theory and practice. Theoretically, the study enhances understanding of how different motivational strategies influence employee performance in the hospitality sector, thereby enriching academic discourse. Practically, it provides hotel managers and HR professionals with evidence-based recommendations to implement effective motivation programs, ultimately boosting performance, improving service quality, and strengthening competitiveness and sustainability in Malaysia’s hotel industry.

Keywords: Employee Motivation, Employee Performance, Hotel Industry, Human Resource Management.

INTRODUCTION

The Malaysian hotel sector is undergoing rapid growth and facing increasing competition, making employee motivation and performance more crucial than ever. Rising tourist numbers and evolving guest expectations, especially in boutique and luxury hotels, demand consistently high-quality service. In this context, employee engagement and satisfaction are directly linked to organizational performance. However, many hotels in Malaysia face challenges in sustaining effective motivation strategies. Existing approaches often fall short, prompting debate over their relevance and effectiveness, and signaling a need for innovative, industry-specific solutions (Ismail et al., 2017).

Motivation in the workplace also carries broader societal implications. Organizations that empower and support their workforce contribute not only to improved performance but also to social mobility and inclusion. This study explores how different motivational factors influence employee performance in Malaysian hotels and aims to offer practical strategies for improvement (Lee et al., 2018).

The primary objective is to identify which factors most effectively drive motivation and enhance performance. By evaluating various strategies ranging from financial incentives to professional development, the research provides hotel managers and stakeholders with actionable insights to foster a more motivated and productive workforce (Kim & Jogaratnam, 2012).

In the hospitality sector, motivated employees are key to delivering excellent guest experiences, encouraging customer loyalty, and building a strong brand reputation. This is especially critical in Malaysia, where service quality serves as a major competitive differentiator (Smith & Xavier, 2019). The study addresses a notable gap in localized research on motivation and performance, delivering both academic and practical contributions tailored to the Malaysian hotel context.

Conceptual Framework

Figure 1 illustrates the relationship between independent variables (salary, incentives, fringe benefits, work environment, job security, and training) and the dependent variable: employee performance. The framework aims to show how these motivational factors collectively impact the performance of employees within the context of selected hotels in Malaysia.

Figure 1. Research Framework

LITERATURE REVIEW

This section reviews key literature on employee motivation and performance within the context of Malaysian hotels. As discussed in the introduction, Malaysia’s hotel industry is experiencing significant growth due to increasing tourism and market competition. Despite recognizing the importance of a motivated and productive workforce, hotel operators continue to face persistent challenges in sustaining employee motivation (Abdullah et al., 2018).

The issues highlighted earlier, such as high turnover, poor job satisfaction, and inadequate training, underscore the importance of identifying the factors that drive employee motivation and performance. These include compensation, benefits, working conditions, job security, and learning opportunities. A deeper understanding of these elements can enable hotel managers to implement targeted strategies that enhance employee satisfaction, boost productivity, and improve organizational outcomes (Tett & Meyer, 1993).

This review aligns with the study’s objectives by synthesizing existing research to uncover how various motivational factors influence employee performance in hospitality settings, with a specific focus on the Malaysian context.

Concepts and Variables

This section explores the core concepts and variables that underpin employee motivation and performance in Malaysian hotels. Two key constructs are central to this study: motivation and employee performance.

Motivation refers to internal and external drivers that prompt individuals to pursue specific goals or engage in particular behaviors (Locke, 1968).

Employee performance relates to how effectively employees complete job tasks and contribute to organizational objectives (Lawler, 1971).

Understanding the relationship between these concepts is crucial for identifying practical strategies to boost performance in service-oriented industries like hospitality.

To further analyze this relationship, several influencing variables are examined:

Fringe Benefits: These are non-wage perks such as healthcare, paid leave, and bonuses that enhance job satisfaction and employee retention. Well-managed fringe benefits contribute positively to performance by improving morale and loyalty (Milkovich & Wigdor, 1991).

Working Environment: A supportive work environment includes clear communication, teamwork, physical comfort, and positive organizational culture. Such an environment boosts employee morale and productivity (Hackman & Oldham, 1976).

Job Security: Employees who feel secure in their positions tend to show higher engagement and lower stress levels. Job security fosters confidence, reduces turnover, and enhances commitment to the organization (Greenhalgh & Rosenblatt, 1984).

Training and Development: Ongoing professional development helps employees stay competent, confident, and motivated. Skill enhancement not only improves performance but also demonstrates organizational investment in employee growth (Noe, 1986).

By understanding these variables, the study aims to identify how different motivational strategies affect employee behavior and performance. This understanding will help guide practical recommendations for enhancing staff satisfaction, performance, and long-term organizational success in Malaysian hotels.

Independent Variables

Fringe Benefits

Definition and Importance

Fringe benefits refer to additional perks employees receive beyond their regular wages, such as health insurance, retirement plans, paid time off, bonuses, and discounts. These benefits play a significant role in enhancing employee satisfaction, motivation, and overall well-being. Research highlights that well-managed fringe benefits are critical for attracting and retaining talent, improving job performance, and fostering a positive organizational culture (Milkovich & Wigdor, 1991).

Relationship with Employee Performance

The relationship between fringe benefits and employee performance is multifaceted. Financial rewards, including fringe benefits, are key motivators. According to Locke’s (1968) Goal-Setting Theory, specific and challenging goals linked to financial incentives can enhance effort and performance. Lawler (1971) emphasized the importance of aligning rewards with performance outcomes. Herzberg’s Two-Factor Theory (Herzberg et al., 1959) differentiates between hygiene factors (e.g., salary and benefits) that prevent dissatisfaction and motivators (e.g., recognition, growth opportunities) that drive higher performance. Modern organizations, therefore, implement holistic reward systems combining both monetary and non-monetary incentives to optimize employee motivation and productivity.

Working Environment

Definition and Importance

A conducive working environment includes supportive colleagues, clear communication, and comfortable facilities. It plays a vital role in shaping employee morale, engagement, and productivity. Research into working environments examines physical space, social interactions, and mental well-being to identify the factors that promote employee happiness and performance (Sundstrom et al., 1999).

Relationship with Employee Performance

The working environment has a significant impact on employee performance. Hackman and Oldham’s (1976) Job Characteristics Model emphasizes that intrinsic job elements such as task variety, autonomy, and feedback increase engagement and performance. Schneider et al. (2011) showed that a positive organizational culture fosters belonging, commitment, and motivation. Physical conditions like lighting, noise, and ergonomics directly affect well-being and productivity. Leadership also plays a crucial role; transformational leadership behaviors (Avolio et al., 2004) help build a positive work climate and improve performance.

Job Security

Definition and Importance

Job security refers to the assurance of continued employment with stable income and minimal fear of unexpected layoffs. It fosters a sense of stability and reduces stress, allowing employees to focus on their responsibilities. Studies have shown that job security enhances employee satisfaction, retention, and organizational performance (Blau, 1964; Greenhalgh & Rosenblatt, 1984).

Relationship with Employee Performance

Job security profoundly affects both individual and organizational outcomes. Blau (1964) argued that perceived job security leads to higher commitment and performance. Conversely, job insecurity can lower morale, engagement, and productivity (De Witte et al., 2016). Organizational factors such as transparent communication and leadership support influence this relationship.

Training and Development

Definition and Importance

Training and development involve enhancing employee skills and knowledge to improve performance and support continuous learning. It includes various methods such as on-the-job training, classroom instruction, and online programs (Garavan et al., 2002).

Relationship with Employee Performance

Training and development significantly influence organizational effectiveness and competitiveness. Studies by Noe (1986) and Baldwin and Ford (1988) emphasized training’s role in improving job competencies. Arthur et al. (2003) found that investment in employee development leads to increased productivity, innovation, and performance.

RESEARCH METHODOLOGY

Research Questions

This study is guided by four research questions:

To what extent do salary, incentives, and benefits affect employee performance?

How does the working environment impact employee performance?

What is the effect of job security on employee performance?

To what extent do training and development opportunities influence employee performance?

Research Hypotheses 

To further structure the investigation, the following hypotheses were formulated:

H1: Higher salaries, incentives, and fringe benefits will result in improved employee performance.

H2: A positive and conducive working environment will enhance employee performance.

H3: Greater job security will lead to better employee performance.

H4: Investment in training and development programs will improve employee performance.

Research Design

A quantitative research design was adopted, using a cross-sectional approach to gather data from 52 hotel employees via surveys.

RESULTS

Demographic Profile of Respondents

Most respondents were Indian (24), followed by Malay (16), Chinese (11), and one from another ethnicity.

Salary, Incentives, and Fringe Benefits

27 respondents agreed that incentives motivated better performance.

40 respondents indicated they would leave for better salaries.

Working Environment

45 respondents reported feeling comfortable in their workplace.

Job Security

32 respondents expressed dissatisfaction with job security.

Training and Development

32 respondents were dissatisfied with existing training programs.

CONCLUSION

The findings of this study emphasize the critical role of motivation in shaping employee performance within the Malaysian hotel industry. As the hospitality sector continues to grow and evolve in response to increasing tourism and customer expectations, maintaining a motivated workforce has become essential for sustaining service quality and organizational success.

High turnover rates, limited job satisfaction, and insufficient professional development opportunities continue to challenge hotel employers in Malaysia. This study demonstrates that key motivational factors, namely salary, incentives, fringe benefits, working environment, job security, and training and development have a significant influence on employee performance.

Training and development initiatives, coupled with efforts to cultivate a supportive work environment, are key drivers for enhancing motivation and performance among hotel staff. Moving forward, hotel managers and stakeholders must prioritize employee well-being and engagement as integral components of organizational success. By implementing proactive measures to address motivational issues and promote continuous improvement, Malaysian hotels can achieve sustained growth, heightened competitiveness, and enhanced guest satisfaction. Ultimately, the success of Malaysian hotels depends on recognizing the intrinsic link between employee motivation and organizational performance and proactively investing in strategies that empower and inspire their workforce to excel.

The impact of motivation on employee performance in Malaysian hotels is a critical area with significant implications for organizational success and sustainability. Past research shows that addressing high turnover rates, enhancing job satisfaction, and promoting work-life balance are crucial for fostering a motivated workforce in the hospitality sector. Effective strategies must be tailored to the unique context of Malaysian hotels, considering diverse employee nee

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