ANALYZING INTERNAL EMPLOYER BRANDING FACTORS ON EMPLOYEE ENGAGEMENT OF FRONT OFFICE EMPLOYEES IN HARD ROCK HOTEL BALI

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IN HARD ROCK HOTEL BALI

By

Annisa 11603084

BACHELOR’S DEGREE In

HOTEL AND TOURISM MANAGEMENT

BUSINESS ADMINISTRATION AND COMMUNICATIONS

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

July 2020

Revision after Thesis Defense on 9

^th

of July 2020

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Annisa STATEMENT BY 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.

Annisa Student

Approved by:

Fiter Abadi MBA Thesis Advisor

Dr, Nila K. Hidayat, S.E., M.M Dean

Date

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Annisa ABSTRACT

ANALYZING INTERNAL EMPLOYER BRANDING FACTORS ON EMPLOYEE ENGAGEMENT OF FRONT OFFICE EMPLOYEES

IN HARD ROCK HOTEL BALI

By

Annisa Fiter Abadi MBA

SWISS GERMAN UNIVERSITY

The aim of this research is to analyze the impact of internal employer branding factors on employee engagement of front office employees in Hard Rock Hotel Bali. This research has internal employer branding as the independent variable and employee engagement as the dependent variable. Internal employer branding has nine dimensions which are; internal communication, group meetings, briefings, training, orientation, living the brand, HR Involvement, reward, and annual performance review. The data were collected from all front office employees that are working in Hard Rock Hotel Bali which were 69 respondents in total. Validity, reliability, classical assumption, simple linear regression, hypothesis t-test, hypothesis f-test, and chi square test is used to analyze and calculate the data. From all of the test, it can be concluded that internal branding that is delivered through training has the most impact towards the employee engagement in Hard Rock Hotel Bali. On the other hand, the least impact given by internal branding towards employee engagement in Hard Rock Hotel Bali is briefing.

This study provides several suggestions for managers and the human resource department to enhance the overall performance in the hotel operations by considering training as determinants of achieving engaged employees.

Keywords: Internal Employer Branding, Employee Engagement, Front Office

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Annisa ÓCopyright 2020

By Annisa

All rights served

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Annisa DEDICATION

I dedicate this hard work

To God, whom I seek solace to.

To my parents, my everything.

To my dearest friends, you guys know why.

To my lecturers, for the trust and support.

And to myself, who have gone this far.

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Annisa ACKNOWLEDGEMENTS

First and foremost, I would like to express my greatest gratitude to Allah SWT. who showers me with countless blessings, who gives me guidance when the road is blurry and gives me the strength I never knew I had.

Secondly, I would like to give my sincerest gratitude to my family. My rock, my shield, my everything. My mom, my dad, and also my aunt, who have been such amazing supporters. You have shown me endless love and care, thank you so much for believing in me. And I am eternally blessed to have you guys.

Next, I would like to give thanks to my advisor, Sir Fiter Abadi. Thank you very much for giving me knowledge, motivation, and guidance throughout the process. You have been nothing but very patient towards me, even though I brain fogged a lot. We all know that this situation is not easy, yet you gave your all to support us. The completion of this thesis is impossible without the help from you.

To all of my dearest friends, you know who you are. We are all in this together, from the very beginning to the very end. We have gone through hell and back, and look where we are now? We made it. Thank you for keeping up with me, for keeping me sane, and for telling me to get back up again after I fall. Thank you for going through this journey with me. Now, on to the next one! See you guys on top!

To all of my lecturers of Hotel and Tourism Management and also all of the SGU staffs who have helped me for the completion of my thesis work. I would like to say thank you very much for your sincere support and assistance.

To all of the Front Office Department employees of Hard Rock Hotel Bali, thank you so much for your participation and support for the accomplishment of my thesis.

Lastly, for all of the people who have not been mentioned above, thank you very much

for all of the help and support that you have shown towards me.

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Annisa TABLE OF CONTENTS

STATEMENT BY AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 9

LIST OF TABLES ... 10

CHAPTER 1: INTRODUCTION ... 12

BACKGROUND ... 12

RESEARCH PROBLEM ... 20

RESEARCH QUESTION ... 21

R^ESEARCHO^BJECTIVES ... 21

SCOPE AND LIMITATION ... 21

SIGNIFICANCE OF STUDY ... 22

CHAPTER 2: LITERATURE REVIEW ... 23

FRAMEWORK OF THINKING ... 23

HUMAN RESOURCE MANAGEMENT ... 24

2.2.1 Human Resource Management in Hospitality Industry ... 25

EMPLOYER BRANDING ... 26

INTERNAL EMPLOYER BRANDING ... 27

2.4.1 Internal Employer Branding in the Service Industry ... 28

2.4.2 The Dimensions of Internal Employer Branding ... 29

ORGANIZATIONAL CULTURE VS.INTERNAL EMPLOYER BRANDING ... 35

E^MPLOYEEE^NGAGEMENT ... 36

2.6.1 The Dimensions of Employee Engagement ... 38

PREVIOUS STUDIES ... 41

STUDY DIFFERENCES ... 47

RESEARCH MODEL ... 48

HYPOTHESIS ... 49

CHAPTER 3: RESEARCH METHOD ... 50

TYPE OF STUDY ... 50

UNIT ANALYSIS AND OBSERVATION ... 50

POPULATION AND SAMPLING ... 51

3.3.1 Population ... 51

3.3.2 Sample Size ... 52

T^{YPES OF}D^{ATA AND}C^OLLECTIONM^ETHOD ... 53

3.4.1 Primary Data ... 53

3.4.2 Secondary Data ... 53

3.4.3 Data Collection Method ... 53

VARIABLE OPERATIONALIZATION ... 54

DATA ANALYSIS TECHNIQUE ... 59

3.6.4 Pre-Test ... 59

3.6.5 Post-Test ... 60

3.6.1 Validity Test ... 60

3.6.2 Reliability test ... 60

3.6.3 Multiple Linear Regression Analysis ... 61

3.6.4 Classical Assumption Test ... 61

3.6.4.1 Normality Test ... 61

3.6.5 Heteroscedasticity Test ... 62

3.6.6 Hypothesis Test ... 62

3.6.6.1 Hypothesis F-Test ... 62

3.6.6.2 Hypothesis T-Test ... 62

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Annisa

CHAPTER 4: RESULT AND DISCUSSION ... 63

COMPANY PROFILE –HARD ROCK HOTEL BALI ... 63

FRONT OFFICE DEPARTMENT ... 69

PRE-TEST ... 71

4.3.1 Validity Pre-Test Result ... 71

4.3.2 Reliability Pre-Test Result ... 72

P^OSTT^EST ... 73

4.4.1 Respondents Profile ... 73

4.4.1.1 Gender ... 73

4.4.2 Age ... 74

4.4.3 Marital Status ... 74

4.4.4 Educational Background ... 75

4.4.5 Length of Work ... 76

4.4.6 Job Title ... 77

4.4.7 Working Section ... 77

4.4.8 Validity Post Test ... 78

4.4.9 Reliability Post Test ... 79

CLASSICAL ASSUMPTION ... 80

4.5.1 Normality Test ... 80

4.5.2 Heteroscedasticity Test ... 81

REGRESSION MODEL ... 82

4.6.1 Model Summary ... 82

4.6.2 ANOVA Test ... 82

SIMPLE LINEAR REGRESSION ... 83

HYPOTHESIS TESTING ... 84

4.8.1 Hypothesis F-Test ... 84

4.8.2 Hypothesis T-Test ... 85

CHI SQUARE TEST ... 86

4.9.1 Internal Communication Towards Employee Engagement ... 87

4.9.2 Group Meetings Towards Employee Engagement ... 88

4.9.3 Briefing Towards Employee Engagement ... 89

4.9.4 Living the Brand Towards Employee Engagement ... 90

4.9.5 Training Towards Employee Engagement ... 91

4.9.6 Orientation Towards Employee Engagement ... 92

4.9.7 HR Involvement Towards Employee Engagement ... 93

4.9.8 Reward Towards Employee Engagement ... 94

4.9.9 Annual Performance Review Towards Employee Engagement ... 95

... 95

HYPOTHESIS DISCUSSION ... 97

CHAPTER 5: CONCLUSION AND RECOMMENDATION ... 102

CONCLUSION ... 102

RECOMMENDATION ... 103

5.2.1 Recommendations for Managerial Implications ... 103

5.2.2 Recommendation for Future Research ... 106

BIBLIOGRAPHY ... 107

APPENDIX I: QUESTIONNAIRE ... 112

... 122

APPENDIX II: CURRICULUM VITAE ... 122

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Annisa LIST OF FIGURES

Figure 1.1 : Number of RevPAR Index of Indonesia’s big cities by (HVS Research,

2016) ... 12

Figure 1.2 : Number of Bali Arrivals year 2014 to 2018 by (Statistika, 2019) ... 13

Figure 1.3 : Employee Engagement: APAC vs. The World by Hewitt (2018) ... 14

Figure 2.1 Framework of Thinking ... 23

Figure 2.2: Research Model ... 48

Figure 4.1: Hard Rock Hotel Bali's Organization Chart ... 67

Figure 4.2: Hard Rock Hotel Bali Front Office Department Chart ... 68

Figure 4.3: Respondent's Gender ... 73

Figure 4.4: Respondent's Age ... 74

Figure 4.5: Respondent's Marital Status ... 74

Figure 4.6: Respondent's Educational Background ... 75

Figure 4.7: Respondents Length Of Work ... 76

Figure 4.8: Respondent's Job Title ... 77

Figure 4.9: Respondent's Working Section ... 77

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Annisa LIST OF TABLES

Table 2.1 Previous Studies ... 47

Table 3.1: Table of Front Office Department Employees in Hard Rock Hotel Bali 2019 ... 52

Table 3.2: Variable Operationalization ... 58

Table 3.3: Cronbach's Alpha, by (Tavakol & Dennick, 2011) ... 61

Table 4.1: Internal Employer Branding Validity Pre-test Result Table ... 71

Table 4.2: Employee Engagement Validity Pre-test Result Table ... 72

Table 4.3: Internal Employer Branding Reliability Pre-test Result Table ... 72

Table 4.4: Employee Engagement Reliability Pre-test Result Table ... 72

Table 4.5: Internal Employer Branding Validity Post Test Result ... 78

Table 4.6: Employee Engagement Validity Post Test Result ... 79

Table 4.7 : Internal Employer Branding Reliability Post Test Result ... 79

Table 4.8: Employee Engagement Reliability Post Test Result ... 79

Table 4.9: Kolmogorov Smirnov Normality Test ... 80

Table 4.10: Heteroscedasticity Test Result ... 81

Table 4.11: Model Summary Table ... 82

Table 4.12: ANOVA Table ... 83

Table 4.13: Variables Table ... 83

Table 4.14: Simple Linear Regression Table ... 84

Table 4.15: Hypothesis F-Test ... 84

Table 4.16: Hypothesis T-Test ... 85

Table 4.17: Chi Square - Internal Communication ... 87

Table 4.18: Symmetric Measures Table - Internal Communication ... 87

Table 4.19: Chi Square - General Meetings ... 88

Table 4.20: Symmetric Measures Table - General Meetings ... 88

Table 4.21: Chi Square - Briefing ... 89

Table 4.22: Symmetric Measures Table - Briefing ... 89

Table 4.23: Chi Square - Living the Brand ... 90

Table 4.24: Symmetric Measures Table - Living the Brand ... 90

Table 4.25: Chi Square - Training ... 91

Table 4.26: Symmetric Measures Table - Training ... 91

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