EFFECTS OF FINANCIAL BENEFITS ON HOTEL EMPLOYEE’S MOTIVATION.docx

International Conference on Emerging Trends Trends in Hospitality & Tourism Sector (Subharti University Meerut

A STUDY ON EFFECTS OF FINANCIAL BENEFITS ON HOTEL EMPLOYEE’S MOTIVATION *NITIN GUPTA ( Associate Professor) IIMT Hotel Management ollege! Meer"t #mail$ lo%el&nitin'ansalgmail.com ontact$ ,-//-0,

PIYUSH KUMAR (Asst. Professor) Professor ) IIMT Hotel Management ollege! Meer"t #mail$ c'g+gmail.com contact$ ,12-+3,3

Abstract

Te 4asic aim of tis 5a5er is to i6entif& te affect of financial 4enefits on te moti%ation of em5lo&ees in organi7ations. To"g tere are man& reasons 8& 5eo5le 8or' for a li%ing! it is "n6enia4le tat mone&! or oter financial re8ar6s! 5la& a 'e& role in moti%ating 5eo5le in te 8or'5lace. #m5lo&ees an6 em5lo&ers %ie8 mone& as te 4asic factor for 9o4 satisfaction. It is 8i6el& acce5te6 tat 5oor or lo8 5a& acts as a 6e:moti%ator. 6e:moti%ator. Someone 8o feels "n6er%al"e6 or "n6er:5ai6 ma& soon lea%e to fin6 4etter:5ai6 em5lo&ment. ;or most 5eo5le! moti%ation (te 8ill to 8or') comes from <8itin=. <8itin=. More mone& can el5 "s feel 4etter a4o"t o"t 8or'! 4"t it is "nli'el& to enco"rage "s to 8or' ar6er or to a iger stan6ar6. In case of otel em5lo&ees> te& nee6 financial re8ar6s rater tan onl& certificate recognition. Mone& ser%es as a igl& tangi4le means of recognition.

A semi str"ct"re6 inter%ie8 8as con6"cte6 for getting an insigt a4o"t teir moti%ation. Te researcers a%e fo"n6 from te s"r%e& tat financial 4enefits are im5ortant for em5lo&ee moti%ation 4"t te im5ortance of non financial re8ar6s cannot e%en 4e 6iscriminate6.

It is a goo6 contri4"tor to te 'no8le6ge 8orl6 of "man reso"rce management 8ic e?5lores te factors tat affect moti%ation of em5lo&ees an6 5ro%i6e a sol"tion to te 5ro4lems face6 4& em5lo&ees at teir 9o4s.

Keywors! ;inancial 4enefits! Hotel! Hotel! Moti%ation! 9o4 satisfaction Rem"neration. Rem"neration.


I"tro#ct$o"

Moti%ation is a general term! 8ic 6escri4es te 6ri%es! nee6s! 6esires an6 oter similar factors. Te em5lo&ees 8ere moti%ate6 8en organi7ation ga%e tem 6ifferent 4enefits in sa5e of financi financial al an6 non: financi financial al 4enefi 4enefits. ts.

Te Hotel In6"str In6"str& & as stea6il& stea6il& recor6e6 recor6e6 5ositi%e 5ositi%e

e?5ansion in te last 6eca6e 8it te esta4lisment of ne8 facilities as a res"lt of increase6 in%estment from 4ot local an6 international in%estors. @it tis e?5ansion in te otel in6"str&! Managements of most facilities are increasingl& facing te callenge of increase6 staff t"rno%er 8it ne8 entrants in te in6"str& constantl& <5oacing= em5lo&ees from oter alrea6& e?isting otel facilities. In a researc con6"cte6 4& K"ria! et al in +-! la4o"r t"rno%er rates of 23 an6 0 in tree star an6 fi%e star rate6 otels res5ecti%el& 8ere o4ser%e6 in Nairo4i. Some scolars arg"e tat mone& is te 'e& moti%ational factor for te em5lo&ees in os5italit& in6"str& (Berris! ,,,). ontrar& to tat! some scolars arg"e tat mone& alone cannot moti%ate em5lo&ees in te os5italit& in6"str& an6 an& oter moti%ational factors also a%e an im5act (Berris! ,,,). Importance of motivation:

Moti%ation is reC"ire6 for te organi7ations! 4eca"se! . Moti%ate6 Moti%ate6 em5lo&ees em5lo&ees are al8a&s al8a&s loo'ing loo'ing for for 4etter 4etter 8a&s 8a&s to 6o a 9o4. 9o4. +. A moti%a moti%ate6 te6 em5lo&ee em5lo&ee general generall& l& is more more C"alit C"alit& & oriente6 oriente6.. Tis Tis is tr"e tr"e 8ete 8eterr 8e are tal'ing a4o"t a manager s5en6ing e?tra time in an6ling a resta"rant or otel or an associate ta'ing e?tra care 8en arranging a f"nction. 0. Higl& moti%ate6 moti%ate6 8or'er 8or'er are are more 5ro6"cti 5ro6"cti%e %e tan a5atet a5atetic ic 8or'er. 8or'er.


. Main 5"r5ose 5"r5ose of moti%ati moti%ation on is to attract attract em5lo&ees em5lo&ees not onl& onl& to 9oin te te organi7ation organi7ationss 4"t also to remain in it. /. Moti%ate6 Moti%ate6 em5lo&ees em5lo&ees 5erform 5erform te tas's tas's in in a 6e5en6a4le 6e5en6a4le manner manner.. Motivation theories

;i%e ;i%e ma9or ma9or a55roac a55roaces es of moti%a moti%atio tion n are Maslow's need-hierarchy theory, Herzberg's two factor theory, Vroom's expectancy theory, dams' e!"ity theory, and #$inner's reinforcement theory% ccording to Maslow, em5lo&ees a%e fi%e le%els of nee6s (Maslo8! ,0)$ 5&siological!

safet&! social! social! ego! an6 self: act"ali7ing. Maslo8 arg"e6 tat lo8er le%el nee6s a6 to 4e satisfie6 % 4efore te ne?t iger le%el nee6 8o"l6 moti%ate em5lo&ees % Herzberg's categori7e6 moti%ation into t8o factors$ moti%ators an6 &giene (Her74erg! Ma"sner!

D Sn&6erm Sn&6erman! an! ,/,). ,/,). Moti%a Moti%ator tor or intrin intrinsic sic factor factors! s! s"c s"c as acie% acie%eme ement nt an6 recogni recognitio tion! n! 5ro6"ce 9o4 satisfaction. H&giene or e?trinsic factors! s"c as 5a& 5a & an6 9o4 sec"rit&! sec"rit&! 5ro6"ce 9o4 6issatisfaction. Vroom's theory is 4ase6 on te 4elief tat em5lo&ees efforts 8ill lea6 to 5erformance an6

5erformance 8ill lea6 to re8ar6s (Eroom! (Eroom! ,2). Re8ar6s ma& 4e eiter 5ositi%e or negati%e. Te more 5ositi%e te re8ar6 te more li'el& te em5lo&ee 8ill 4e igl& moti%ate6. on%ersel&! on %ersel&! te more negati%e te re8ar6 te less li'el& te em5lo&ee 8ill 4e moti%ate6. dams' theory stat states es tat tat em5lo em5lo&e &ees es str" str"ggl gglee for for eC"it eC"it& & 4et8e 4et8een en tem temse sel% l%es es an6 an6 oter oter

em5lo&ees. #C"it& is acie%e6 8en te ratio of em5lo&ee o"tcomes o%er in5"ts is eC"al to oter em5lo&ee o"tcomes o%er in5"ts (A6ams! ,2/).


#$inner's theory sim5l& states tose em5lo&eesF 4ea%iors tat lea6 to 5ositi%e o"tcomes 8ill 4e

re5eate6 an6 4ea%iors tat lea6 to negati%e o"tcomes 8ill not 4e re5eate6 (S'inner! ,/0). Management so"l6 5ositi%el& reinforce em5lo&ee 4ea%iors tat lea6 to 5ositi%e o"tcomes. Management so"l6 negati%el& reinforce em5lo&ee 4ea%ior tat lea6s to negati%e o"tcomes. E%%ect o% %$"a"c$a& be"e%$ts o" 'ote& e()&oyees!

;inancial benefits acC"ire significant moti%ating 5o8er 4eca"se it comes to s&m4oli7e so man& intangi4le goals. It acts as a s&m4ol in 6ifferent 8a&s for 6ifferent 5eo5le an6 for te same 5ersons at 6ifferent times. ;inancial benefits can 5ro%i6e 5ro%i6e 5ositi 5ositi%e %e moti%a moti%atio tion n in te rigt rigt circ"mstance! not onl& 4eca"se 5eo5le nee6 an6 8ant mone& 4"t also 4eca"se it ser%es as a igl& tangi4le means of recognition. Mone& can 4e consi6ere6 as scorecar6 tro"g 8ic em5lo&ees can e%al"ate o8 m"c an organi7ation %al"es tem. Kocan (+--+) arg"e6 tat mone& 8or's as a sort:term moti%ation factor an6 it 6oes not transform em5lo&ee attit"6e an6 4ea%ior in te t e long term. He 5ointe6 o"t tat t at mone& mone & onl& o nl& moti%ates em5lo&ees to see' f"rter re8ar6s.

Anoter researcer in tis area 8as BaC"es (,2)! 8o em5asi7e6 te nee6 for re8ar6 s&stems to 4e fair an6 eC"ita4le. As 5er im! te re8ar6 so"l6 4e clearl& relate6 to effort or le%el of res5onsi4ilit& an6 5eo5le so"l6 not recei%e less mone& tan te& 6eser%e com5are6 8it teir fello8 fello8 8or'er 8or'ers. s. BaC"es BaC"es calle6 calle6 tis tis te ;elt: ;elt:;ai ;air> r> 5rinci 5rinci5le 5le.. It is necess necessar& ar& to e?amine e?amine te moti%ational 5o8er of mone& in or6er to 4e a4le to assess te %al"e an6 im5ortance of oter moti moti%a %ato tors rs.. Mone& Mone& is te te means means 4& 8ic 8ic  em5l em5lo& o&ee eess are are 6ire 6irect ctl& l& re8a re8ar6 r6e6 e6 for for tei teir r contri4"tions to8ar6s te acie%ements of organi7ational goals.

As 5er te Maslo8Fs ierarc& of nee6s teor&! mone& is associate6 8it te lo8er le%el nee6s! s"c as 5&sical an6 sec"rit& nee6s. Maslo8 (,/) state6 tat once te lo8er:or6er nee6s are


met! iger:or6er nee6s 8ill 4ecome most im5ortant. T"s! a66itional salar& increases 6o not moti%a moti%ate te em5lo&e em5lo&ees es an& f"rter. f"rter.

To im5ro% im5ro%ee 9o4 satisfa satisfacti ction on an6 5erforma 5erformance nce le%el le%el of

em5lo&ees! management m"st 8or' on moti%ational factors 4& 5ro%i6ing o55ort"nities for career a6%ance a6%ancemen mentt an6 6e%elo 6e%elo5me 5ment! nt! as em5lo&e em5lo&ees es %al"e %al"e moti%a moti%ator torss more more tan tan &gien &gienee factor factorss (Ramlall! +--).

Accor6ing to ester arnar6! mone& is te 8ea'est moti%ator an organi7ation co"l6 offer its mem4ers. Her74erg totall& re9ects mone& as a moti%ator. Mone& o8e%er can 4e meas"re6 8ile oter moti%ational factors cannot.

Some 5eo5le! in select in6"stries s"c as commission:4ase6 sales! migt 4e igl& moti%ate6 4& mone&. An6 in some ti5 6e5en6ent occ"5ations (8ait staff! 6oor men! etc.)! 8ere te connection to 4ea%ior an6 re8ar6 is almost imme6iate! 5a& can also 4e a moti%ator. Ho8e%er! tese are te e?ce5tions an6 not te norm.

J5sa an6 "nnettee (,22) list fi%e teories of e?5lanations of te role of mone& in em5lo&ee moti%ation an6 5erformance.

. It is genera generall& ll& 4elie%e6 4elie%e6 tat mone& mone& acts a genera generali7 li7e6 e6 con6ition con6itione6 e6 reinforc reinforcer er since it is re5eate6l& 5aire6 8it 5rimar& reinforces.

+. Some s"ggest s"ggest tat mone& mone& is con6itione6 con6itione6 incenti% incenti%e! e! tat is! is! te re5eate6 re5eate6 5airing 5airing of mone& 8it 5rimar& incenti%es el5s to esta4lis a ne8 learne6 6ri%e for mone&.

0. It is s"ggest s"ggeste6 e6 tat 5eo5le 5eo5le learn learn to 4ecome an?io"s an?io"s in te 5resence 5resence of a %ariet& %ariet& of c"es tat signif& an a4sence of mone&. S"c c"es incl"6e 4eing tol6! t affor6 tat= S"c c"es lea6 to feeling of an?iet& (an6 5era5s feeling of insec"rit&) 8ic mone& can satisf&.


. Mone& is seen as <&giene= <&giene= factor factor as in Her74erg> Her74erg>ss t8o:factor t8o:factor teor& teor&.. In tis mo6el! mo6el! it is s"ggeste6 tat te a4sence of mone& ca"ses 6issatisfaction! alto"g te 5resence of mone& 6oes not satisf&. It merel& eliminates te so"rce of 6issatisfaction an6 4rings someone to a ne"tral state of satisfaction.

/. Mone& can ser%e! ser%e! as an instr"m instr"ment ent for gaining gaining oter oter 6esire6 6esire6 o"tcomes o"tcomes s"c as 4"il6in 4"il6ing g or 4"&ing a ne8 o"se! car or %acation. Tese accor6s acc or6s 8it te e?5ectanc&L%alence teor&. Here mone& acC"ires %al"e for an in6i%i6"al to te e?tent tat it can el5 to f"lfill tese oter 6esires an6 nee6s.

Mone&! for e?am5le! co"l6 terefore 4e an instr"mental re8ar6 for someone 8anting a ne8 car 4"t ma& not 4e eiter an instr"mental re8ar6 or a moti%ator for someone see'ing esca5e from te 5ress"res of a ro"tine! 6ea6:en6 9o4. ;or s"c a 5erson onl& 9o4 enricment can moti%ate.

Mone& co"l6 4e a moti%ating factor 4"t 8itin some limite6 sit"ation. Ho8e%er! 8e arg"e tat em5lo&ees ta'e mone& for grante6 as a re8ar6 for teir la4o"r an6 it is not seen as a moti%ator as s"c. Its a4sence 4ree6>s 6issatisfaction! its 5resence o8e%er 6oes not a66 to 5erformance o%er an6 a4o%e te normal.

Researc s"ggests tat! as em5lo&ee>s income increases! mone& 4ecomes less of a moti%ator (Ko%ac! ,31). Also! as em5lo&ees get ge t ol6er! interesting 8or' 4ecomes more of a moti%ator.

Salari Salaries es are te most most o4%io"s o4%io"s moti%at moti%ation ional al factor factor 8en 8en it comes comes to o"r 9o4s. 9o4s. #m5lo& #m5lo&ees ees consta constantl ntl& & com5et com5etee for 5ositi 5ositions ons tat tat offer offer te C"ic'es C"ic'est! t! most most easil& easil& access accessi4l i4lee re8ar6 re8ar6.. Somet Sometim imes es!! man& man& ote oterr moti moti%at %atio ional nal fact factor orss ma& ma& sacr sacrif ific ice6 e6 4& em5l em5lo& o&ees ees to atta attain in 9o4 9o4 satisfaction. Tat is 8& 8ene%er an& associate got goo6 5a& in anoter otel or anoter ser%ice sector e mo%es.


Pay, is a major consideration in human resource management because it provide provides s employee employees s with a tangible tangible reward reward for their their services services (Bohlander, (Bohlander, Snel Snell, l, and and Sher Sherma man, n, 20 2001 01! !

Ston Stone e (1"# (1"#2 2 indi indica cate ted d that that peop people le are are

motivated by money for many di$erent reasons! %he need to ful&ll the basic necessities of life motivates most people! Some people thin' of money as instrumental motivational factor, to satisfying non economic needs such as power, status and aliations with desired groups! )oney is often viewed as a symbol of personal success and achievement!

T'e I()act o% F$"a"c$a& be"e%$ts o" E()&oyee Mot$*at$o" $s Lar+er Sa&ary Sa&ary,, Bo"#ses Bo"#ses a" A&&ow A&&owa"ce a"cess Are Are t'e S$+"$%$c S$+"$%$ca"t a"t E&e(e" E&e(e"ts ts o% F$"a"c$ F$"a"c$a& a& be" be"e%$t e%$ts! s!

;inancial be"e%$ts li'e salar&! 4on"ses an6 fringe 4enefits are instr"mental in f"lfilling te 4asic neces necessi siti ties es of life life an6 an6 nee6 nee6ss of 4elo 4elong ngin ings gs an6 a"to a"tori rit& t&.. It is a s&m4 s&m4ol ol of tri" tri"m5 m5  an6 accom5lisment. #m5lo&ees e?5ect a salar& accor6ance to teir s'ills! a4ilities an6 C"alification. An ineC"ita4le 5a& is a so"rce of a55reciating te em5lo&ees for teir ser%ices an6 efforts. No4o6& li'es to 4e "na55reciate6 all te em5lo&ees e?5ect a salar& tat is "5 to teir C"alification an6 e?5erience. Jne of te em5lo&ees sai6! am more tan satisfie6 8it m& salar& salar& 4eca"s 4eca"see m& om5an& om5an& is offeri offering ng me a com5et com5etiti iti%e %e 5ac'age 5ac'age as com5are com5are6 6 to oter oter organi7ations. It as 4een almost one &ear since I a%e 9oine6 tis com5an&. I am moti%ate6 4& te salar& 5ac'age 4eing offere6 ere. It is in accor6ance 8it te s'ills! a4ilities! e?5erience an6 m& C"alification

-eco((e"at$o"s

Te financial be"e%$ts 5la& a 5i%otal role in 4oosting in 4oosting te morale of te em5lo&ees. Salar& is te most moti%ating financial re8ar6 4eca"se mone& ena4les te em5lo&ees to li%e teir li%es 8it


6ignit& an6 sta4ilit&. It is also consi6ere6 as a s&m4ol of stat"s an6 is reC"ire6 to create te 4elongingness.

%he &rst recommendation recommendation is for the employers to wor' towards harmoni*ing the pay! %hey o$er their employees to ensure that they don+t lose sta$ to other competing hotels and &rms since they feel they can get better pay there!

onclusion

;rom te st"6& it can 4e concl"6e6 tat financial 4enefits as an im5ortant %al"e in moti%ation. As in6ica in6icate6 te6 in most most of te literat literat"re "re!! salar& salar& 5la&s 5la&s an im5or im5ortant tant role in moti%a moti%atin ting g otel otel em5lo&ees. Ho8e%er! te strengt of te relationsi5 4et8een salar& an6 9o4 satisfaction ma& 4e infl"ence6 4& anoter factors. Someone 8o %al"es mone& igl& 8ill 4e satisfie6 8it is salar& an6 "ltimatel& is 9o4 8en e recei%es a 6esire6 raise.

Accor6ing to a8ler (,10)! em5lo&eesF 5a& satisfaction "s"all& infl"ences teir 9o4 satisfaction. Tang et al. (+--) fo"n6 tat 5a& satisfaction is a 5art of 9o4 satisfaction! 8ic co"l6 lea6 to iger 8or'er 5ro6"cti%it&. @or'ers are ins5ire6 to acie%e more an6 to gi%e f"ll effort onl& if te& are satisfie6 8it teir 5a&. It is no s"r5rise tat mone& is an im5ortant factor! 4"t tere are man& oter reasons for an em5lo&ee>s 6ecision to lea%e. a8ler (,10) re5orte6 tat a4senteeism can res"lt 8en 5a& 6issatisfaction is 5resent. Accor6ing to Mani (+--+)! 8or'ers 8o 8ere a4sent from teir 8or's freC"entl& 8ere not satisfie6 8it teir 5a&! 8ereas 2, 8o 8ere a4sent once or more in si? monts 8ere not satisfie6 8it teir 5a&.

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Cheng" H# H#" $s $ssessing The The Importa rtance of of Em Employee Mo Motivation in the Hotel Industry in Taipei" Tai%an# Unpublished masters thesis" University of 'isconsinStout" Menomonie" 'isconsin" United States ()**+#

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EFFECTS OF FINANCIAL BENEFITS ON HOTEL EMPLOYEE’S MOTIVATION.docx

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