INTRINSIC REWARDS TOWARDS EMPLOYEE MOTIVATION IN HOSPITALITY INDUSTRY
By Sherlyn 13311035
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
HOTEL AND TOURISM MANAGEMENT - CONCENTRATION FACULTY OF BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Sherlyn
____________________________________________ ___________
Student Date
Approved by:
Dr. M. Sienly Veronica, S.E., M.M.
____________________________________________ ___________
Thesis Advisor Date
Prof. Eric Jos Nasution, MBA, MA, Ph.D
____________________________________________ ___________
Dean Date
ABSTRACT
ANALYSIS ON IMPACT OF EXTRINSIC REWARDS VS INTRINSIC REWARDS TOWARDS EMPLOYEE MOTIVATION
IN HOSPITALITY INDUSTRY
By Sherlyn
Dr. M. Sienly Veronica, S.E., M.M.
SWISS GERMAN UNIVERSITY
High labour turnover has become a serious problem in hospitality industry.
Neglecting employee motivation can be dangerous for company, it becomes a major cost of several disadvantages, one of them is high labour turnover.
However, this matter could be handled by givingappropriate rewards in the company since it can be a motivation drive for the employees. This research will specifically look further into which type of rewards that more influencing between extrinsic rewards and intrinsic rewards towards motivation. Using SPSS software and simple linear regression method, 75 data collected is processed through validity and reliability test, classical assumption test and hypothesis testing. The results show both extrinsic and intrinsic rewards affecting employee motivation, however intrinsic rewards has greater impact than extrinsic rewards. It is recommended for the hotel to maintain the high influenced indicator while also paying attention to other factors such as employees’ family welfare, employees’ passion and challenges.
© Copyright 2015 by Sherlyn All rights reserved
DEDICATION
I dedicate this thesis work for my bachelor degree.
ACKNOWLEDGEMENTS
I would like to express my gratitude to my one and only Almighty God, Jesus Christ. It is only by His grace and blessing that I can complete my thesis work on time. In this occasion I would also like to extend my sincere gratefulness to the following people:
1. My advisor, Mrs. Sienly Veronica for her perfect thesis guidance, time, patience and her constructive criticism throughout the thesis writing process. All things you have done for me are simply irreplaceable.
2. To my beloved family, thank you for financial and spiritual support that enable me to do day to day thesis work. Special thanks to my mom, Puspita Sari Widagdo for her direct help that giving me opportunity to get research sample.
3. To my senior, Josephine Priscila, for her kind assistances in helping and allowing me to gather the research data in one of the property of her hotel management company.
4. To my one of a kind best friend, Stephanie, for both emotional and roller coaster journey these past 4 years, without it I will not be able to reach this finish point. Thank you for becoming a stress reliever, a pain killer and a caring person during the thesis work.
5. To my partners in crime, Cynthia Febriana, Lydia Rachel Chandra and Rika Tagore, thank you for always be a motivation power supply, not only a comforting word of mouth, but who also ready to assist any obstacle ahead. There is no stopping us, because we are the bombs!
Last but not least for everyone that have direct and indirectly involved, support and assist me in this thesis making process. Thank you very much!
TABLE OF CONTENTS
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 10
LIST OF TABLES ... 11
CHAPTER 1 INTRODUCTION ... 12
1.1 Background ... 12
1.2. Limitations ... 16
1.3. Research Problems ... 17
1.4 Research Question ... 17
1.5. Research Objectives ... 17
CHAPTER 2 LITERATURE REVIEW ... 18
2.1 Definition of Human Resources ... 18
2.1.1 Human Resources Roles (Mote, 2015) ... 18
A. ACQUISITION ... 18
B. DEVELOPMENT ... 19
C. COMPENSATION ... 20
D. MAINTENANCE ... 20
2.3 Theory of Motivation ... 24
2.3.1 Theory of Motivation Indicator ... 32
2.4 Previous Study ... 33
Effects of Delayed Rewards and Task interest on Intrinsic Motivation ... 34
2.5 Framework of thinking ... 43
2.5.1 Extrinsic rewards affecting employee motivation ... 43
2.5.2 Intrinsic rewards affecting employee motivation ... 44
2.6 Basic of differences ... 45
2.7 Research Model ... 46
2.8 Hypothesis ... 47
CHAPTER 3 RESEARCH METHODOLOGY ... 48
3.1 Type of Research ... 48
3.2 Operational Variable Definition ... 48
3.3 Population, Sample, and Sampling Method ... 49
3.4 Data Sources and Data Collection Technique ... 50
3.5 Method of Data Analysis ... 51
CHAPTER 4 DATA ANALYSIS ... 54
4.1 Data Source ... 54
4.1.1 Demographic ... 54
4.1.2 Data Tabulation ... 58
4.2 Data Analysis ... 63
4.2.1 Validity and Reliability Test ... 63
4.2.2 Classic Assumption Test ... 68
4.3 Hypothesis Testing ... 70
4.4 Discussion ... 71
4.4.1 Discussion for First Hypothesis ... 71
4.4.2 Discussion for Second Hypothesis ... 72
CHAPTER 5 CONCLUSION... 74
5.1 Conclusion ... 74
5.2 Recommendation ... 74
GLOSSARY ... 77
REFERENCES ... 78
APPENDIX 1 QUESTIONNAIRE DESIGN – ENGLISH VERSION ... 85
APPENDIX 2 QUESTIONNAIRE DESIGN – INDONESIAN VERSION ... 87
CURRICULUM VITAE ... 89
