OF COVID-19, CASE STUDY: 3 BRANCHES OF ASTON HOTELS IN DKI JAKARTA
By Natasya Edith
1-1603-021
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANAGEMENT Concentration
FACULTY BUSINESS AND COMMUNICATION
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 14
thof July 2020
Natasya Edith
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.
Natasya Edith
_____________________________________________
Student
DateApproved by:
Yudhistira Pratama, MBA
_____________________________________________
Thesis Advisor
DateDr. Nila K. Hidayat SE., MM
_____________________________________________
Dean
DateNatasya Edith
ABSTRACT
THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP AND JOB SECURITY TOWARDS EMPLOYEE MOTIVATION DURING CRISIS TIME OF
COVID-19,CASE STUDY: 3 BRANCHES OF ASTON HOTELS IN DKI JAKARTA
By
Natasya Edith
Yudhistira Pratama, MBA, Advisor
SWISS GERMAN UNIVERSITY
On January of 2020, COVID-19, a pandemic virus started in Wuhan, China, and in no time spread across the globe causing health, economic and immense sufferings to mankind. Needless to say, hospitality industry is not spared when countries started closing their borders and airlines stop flying. Hotels in Indonesia are highly affected by the low occupancy rate, job losses and ancillary business shutdowns hurting employment and employees’ social well-beings. Naturally, they lack motivation to work, anxious about their future, worry over their sustenance and require clear guidance. Studies have shown transformational leadership and job security are factors that might affect employee’s motivation in an economic downturn. This research aims to analyze how organization’s transformational leadership and job security at 3 branches of Aston Hotel Group in DKI Jakarta influence employee’s motivation during COVID- 19 crisis. The quantitative data has been collected from questionnaires (via Google- Form) from 181 permanent and non-managerial employees who work in Aston Simatupang, Aston Pluit and Aston Kartika Grogol. Multiple linear regression was being used to analyze transformational leadership in four dimensions and job security in six dimensions. The results indicated that both transformational leadership and job security influence employee’s motivation by 79.4% in this COVID-19 crisis at these three branches of Aston Hotel Group in DKI Jakarta.
Keywords: Transformational Leadership, Job Security, Employee Motivation, Crisis, COVID-19, Hospitality Industry
Natasya Edith
© Copyright 2020
by Natasya Edith
All rights reserved
Natasya Edith
DEDICATION
I dedicate this bachelor thesis work for my God, my parents and sister for their endless support, to my new phase of life, and to myself as a reminder that nothing great comes
easy.
Natasya Edith
ACKNOWLEDGEMENTS
A very big gratitude is firstly expressed to my Savior and God, Jesus Christ, for hope, patient, strength, health, and guidance allowing me to finish this Bachelor thesis. It has been a really tough 5 months to complete this project. I could not have done all this without His endless blessings and grace. Thank you for the intangible support and helping me to overcome any obstacles that come my way during this journey.
Secondly, I would like to express my greatest gratitude to both my parents for their unconditional supports and always be there for me whenever I need them. Thank you for believing in me and encouraging me during my hard times. I am so grateful to have both of you in my life. And to my little sister, Jessica Elisse, thank you for never giving me up and cheering me up during my low times. Thank you for being a good listener and always supporting me even though you are living in another country.
Next, I would like to express my gratitude to my thesis advisor, Sir Yudhistira Pratama for your advice and patiently guiding me during the writing of this thesis. Also to Miss Jane from English Department who gave me grammar correction and vocabularies recommendation.
I would like to thank Mr. Esa Theodore Mbouw, Mr. Robert La Are, Chef Rano Abryanto, and Ms. Gemala Garibaldi for your constructive inputs and advice to make my research possible. Also Ms. Sema Titias for helping me with administration matters throughout my thesis progress.
To my friends; Caroline, Patricia, Sydnie, Prisca, Ellisa, Jason, Matthew, and Billy, thank you for your endless motivation and support not only during the hard times of this thesis writing but also the 4-year journey of my college life. I will always cherish the laughter and memories we shared together.
Last but not least, thank you human resources manager of Aston Hotel Group and
respondents to my thesis. Your participation helped me to complete my thesis work.
Natasya Edith
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 10
LIST OF TABLES ... 11
CHAPTER I - INTRODUCTION ... 12
1.1 Background ... 12
1.2 Research Problems ... 20
1.3 Research Questions ... 21
1.4 Research Objectives ... 21
1.5 Scope and Limitation ... 22
1.6 Significance of Study ... 22
CHAPTER II - LITERATURE REVIEW ... 23
2.1 Framework of Thinking ... 23
2.2 Employee Motivation ... 25
2.2.1 The Concept of Motivation ... 25
2.2.2 Dimension of Employee Motivation ... 27
2.2.2.1 Economic Rewards ... 27
2.2.2.2 Intrinsic Satisfaction ... 27
2.2.2.3 Social Relationships ... 28
2.3 Transformational Leadership ... 28
2.3.1 Theory of Transactional and Transformational Leadership ... 28
2.3.2 Dimension of Transformational Leadership ... 32
2.3.2.1 Idealized Influenced ... 32
2.3.2.2 Inspirational Motivation ... 33
2.3.2.3 Intellectual Stimulation ... 33
2.3.2.4 Individualized Consideration ... 34
2.3.3 The Correlation between Transformational Leadership with Employee Motivation ... 35
2.4 Job Security ... 36
2.4.1 The Concept of Job Security ... 36
2.4.2 Dimension of Job Security ... 37
2.4.3 The Correlation between Job Security and Employee Motivation ... 38
2.5 The Correlation between Transformational Leadership and Job Security ... 40
2.6 Crisis ... 40
2.6.1 The Concept of Crisis ... 40
2.6.2 Crisis Typologies ... 41
2.7 Hospitality Industry ... 43
2.8 Previous Study ... 43
2.9 Study Differences ... 49
Natasya Edith
2.10 Research Model ... 53
2.11 Hypothesis ... 53
CHAPTER III - RESEARCH METHODS ... 54
3.1 Type of Study ... 54
3.2 Unit Analysis or Unit Observation ... 55
3.2.1 Unit Analysis ... 55
3.2.2 Unit Observation ... 55
3.3 Sampling Design ... 55
3.3.1 Population and Sample Target ... 56
3.3.1.1 Population ... 56
3.3.1.2 Sample Target ... 56
3.3.2 Sampling Method ... 57
3.3.2.1 Non-Probability Sampling ... 57
3.3.2.2 Purposive sampling ... 57
3.3.3 Sampling Size ... 58
3.4 Time Frame of Study ... 59
3.5 Data Sources and Collection Method ... 60
3.5.1 Type of Data ... 60
3.5.1.1 Primary Data ... 60
3.5.1.2 Secondary Data ... 62
3.5.2 Data Collection Method ... 63
3.5.3 Questionnaire Structures ... 64
3.6 Variable Operationalization ... 68
3.7 Data Processing Procedures ... 76
3.7.1 Data Preparation ... 76
3.7.2 Data Testing ... 77
3.7.2.1 Pre-Test ... 77
3.7.2.2 Post-Test ... 77
3.7.3 Validity Test ... 77
3.7.4 Reliability Test ... 79
3.8 Data Analysis Techniques ... 80
3.8.1 Descriptive Statistic Analysis ... 80
3.8.2 Inferential Statistic Analysis ... 81
3.8.2.1 Multiple Linear Regression ... 81
3.9 Classical Assumption Test ... 82
3.9.1 Normality Test ... 82
3.9.2 Heteroscedasticity Test ... 83
3.9.3 Multicollinearity Test ... 84
3.9.4 Linearity Test ... 84
3.10 Hypothesis Test ... 85
3.10.1 F-test (ANOVA) ... 85
3.10.2 T-test ... 86
3.10.3 Chi-Square Test (Cross Tabulation) ... 86
CHAPTER IV - RESULTS AND DISCUSSIONS ... 88
4.1 Company Profile ... 88
4.1.1 Aston Hotels International ... 88
4.1.2 Three Aston Branches in DKI Jakarta ... 89
4.1.2.1 Aston Priority Simatupang ... 89
4.1.2.2 Aston Pluit ... 90
4.1.2.3 Aston Kartika Grogol ... 91
Natasya Edith
4.2 Pre-Test ... 92
4.2.1 Pre-Test Validity Results ... 93
4.2.2 Pre-Test Reliability Results ... 94
4.3 Respondent Profile ... 95
4.3.1 Aston Hotel Branch ... 96
4.3.2 Gender ... 97
4.3.3 Age ... 98
4.3.4 Domicile ... 99
4.3.5 Working Department Area ... 100
4.3.6 Length of Working ... 101
4.4 Post-Test ... 102
4.4.1 Post-Test Validity Results ... 102
4.4.2 Post-Test Reliability Results ... 104
4.5 Descriptive Statistic Analysis ... 105
4.5.1 Transformational Leadership Variable ... 105
4.5.2 Job Security Variable ... 107
4.5.3 Employee Motivation Variable ... 109
4.6 Classic Assumption Test ... 110
4.6.1 Normality Test ... 110
4.6.2 Heteroscedasticity Test ... 112
4.6.3 Multicollinearity Test ... 114
4.6.4 Linearity Test ... 114
4.7 Inferential Statistic Analysis ... 116
4.7.1 Multiple Linear Regression ... 116
4.7.1.1 Model Summary ... 116
4.7.1.2 Multiple Linear Regression Equations ... 117
4.8 Hypothesis Test ... 117
4.8.1 Hypothesis Testing using F-Test ... 117
4.8.2 Hypothesis Testing using T-Test ... 119
4.8.3 Chi-Square Test (Cross Tabulation) ... 120
4.9 Discussion ... 122
4.9.1 Hypothesis 1 ... 122
4.9.2 Hypothesis 2 ... 126
CHAPTER V – CONCLUSION AND RECOMMENDATION ... 130
5.1 Conclusion ... 130
5.2 Recommendation ... 131
5.2.1 Recommendation for Future Research ... 131
5.2.2 Recommendation for Managerial Implication ... 133
GLOSSARY ... 136
REFERENCES ... 138
APPENDIXES ... 147
CURRICULUM VITAE ... 159
Natasya Edith
LIST OF FIGURES
Figure 1. 1 Indonesia’s COVID-19 Cases ... 13
Figure 1. 2 Occupancy Rate of Star Hotel 2020 vs 2019 ... 14
Figure 1. 3 Factors Affecting Employees Motivation in Hospitality Industry ... 16
Figure 1. 4 Type of Leadership Style ... 18
Figure 2. 1 Framework of Thinking ... 24
Figure 2. 2 Research Model ... 53
Figure 3. 1 The Data Analysis Process ... 80
Figure 3. 2 The Level of Skewness ... 83
Figure 3. 3 Scatterplot Graph of Heteroscedasticity ... 84
Figure 4. 1 Respondents Profile - Aston Hotel Branch ... 96
Figure 4. 2 Respondents Profile - Gender ... 97
Figure 4. 3 Respondents Profile – Age Group ... 98
Figure 4. 4 Respondents Profile – Domicile ... 99
Figure 4. 5 Respondents Profile – Working Department Area ... 100
Figure 4. 6 Respondents Profile - Length of Working ... 101
Figure 4. 7 Data Distribution in P-Plot
... 112Figure 4. 8 Histogram Graph ………...112
Figure 4. 9 Scatterplot of Heteroscedasticity Test ... 113
Natasya Edith
LIST OF TABLES
Table 2. 1 Comparison of Transactional and Transformational Leadership ... 29
Table 2. 2 Transforming and Transformational Leadership Differences ... 31
Table 2. 3 Previous Study ... 44
Table 2. 4 Study Differences Table ... 49
Table 3. 1 Total of Permanent Non-Managerial Employee ... 58
Table 3. 2 Time Frame of Study ... 59
Table 3. 3 Advantages and Disadvantages of Qualitative Research ... 61
Table 3. 4 Advantages and Disadvantages of Secondary Data ... 63
Table 3. 5 Questionnaire Structure ... 65
Table 3. 6 Screening Questions ... 66
Table 3. 7 Respondent Profile Questions ... 67
Table 3. 8 Variable Operationalization ... 68
Table 3. 9 Pearson’s r Correlation Coefficient Table ... 78
Table 3. 10 Cronbach’s Alpha Consistency Table ... 79
Table 3. 11 F-Table ... 85
Table 3. 12 T-Table ... 86
Table 3. 13 The Range table of Coefficient Correlation ... 87
Table 4. 1 Validity Pre-Test Results ... 93
Table 4. 2 Reliability Pre-Test Results ... 95
Table 4. 3 Summary of “Aston Hotel Branch” Respondents ... 96
Table 4. 4 Summary of “Domicile” Respondents ... 99
Table 4. 5 Summary of “Working Department Area” Respondents ... 100
Table 4. 6 Summary of “Length of Working” Respondents ... 102
Table 4. 7 Validity Post Test Results ... 103
Table 4. 8 Reliability Post-Test Results ... 104
Table 4. 9 Descriptive Statistic for X1 Transformational Leadership ... 105
Table 4. 10 Descriptive Statistics of Transformational Leadership (X1) ... 106
Table 4. 11 Descriptive Statistic for X2 Job Security ... 107
Table 4. 12 Descriptive Statistics of Job Security Dimension (X2) ... 108
Table 4. 13 Descriptive Statistic for Y Employee Motivation ... 109
Table 4. 14 Normality Test Result using Kolmogorov Smirnov Test ... 111
Table 4. 15 Heteroscedasticity Test using Spearman Rank Correlation Test ... 113
Table 4. 16 Multicollinearity Test Result ... 114
Table 4. 17 Linearity Test Result – Transformational Leadership ... 115
Table 4. 18 Linearity Test Result – Job Security ... 115
Table 4. 19 Model Summary ... 116
Table 4. 20 Multiple Linear Regression Equations Result ... 117
Table 4. 21 F-test Result ... 118
Table 4. 22 T-Test Result ... 119
Table 4. 23 Hypothesis T-Test Result ... 119
Table 4. 24 The Result of Chi-Square of Transformational Leadership ... 120
Table 4. 25 The Result of Chi-Square of Job Security ... 121