Ervinna Juni Damayanti Student Date Approved by: Munawaroh SE, MM Thesis Advisor Date Prof

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FACTOR AFFECTING E-RECRUITMENT IN HOTEL INDUSTRY CASE STUDY: X HOTEL IN BALI

By

Ervinna Juni Damayanti 13310035

A thesis submitted to the Faculty of

BUSINESS ADMINISTRATION AND HUMANITIES

in partial fulfillment of the requirements for the

BACHELOR’S DEGREE in

HOTEL AND TOURISM MANAGEMENT

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

Revision after the Thesis Defense on 21 July 2014

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Ervinna Juni Damayanti 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.

Ervinna Juni Damayanti

_____________________________________________

Student Date

Approved by:

Munawaroh SE, MM

_____________________________________________

Thesis Advisor Date

Prof. Eric Jos Nasution, MBA, M.A, PhD

_____________________________________________

Dean Date

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Ervinna Juni Damayanti ABSTRACT

FACTOR AFFECTING E-RECRUITMENT IN HOTEL INDUSTRY CASE STUDY: X HOTEL IN BALI

By

Ervinna Juni Damayanti Munawaroh, SE, MM, Advisor

SWISS GERMAN UNIVERISTY

The process of attracting capable applicants for employment defines recruitment (Harshalsk, 2010). Over time, the development of technology has changed the way organizations recruit potential candidates to fill a particular position. The influence of the Internet has revolutionized the recruitment process, reforming conventional recruitment into 'e-recruitment' (McMunn, 2013). E-recruitment is now the most popular way to hire personnel in companies large and small.

This study focuses on the internal and external factors affecting e-recruitment in the hotel industry. Data was gathered by survey, distributing questionnaires to 125 employees in X Hotel, Bali. Thus, the methodology used a quantitative approach with descriptive analysis. The results show that of the internal factors, recruitment policy is the strongest factors affecting e-recruitment, whereas regarding the external factors; the labour market is the strongest factor. X hotel focuses on the objective of recruitment process and the strategy in filling up the vacancies with the best-qualified people and they are concern in labour market which is show the employment condition in the market.

Keywords: e-recruitment, internal and external factors

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Ervinna Juni Damayanti DEDICATION

I dedicate this thesis for my beloved parents and all my sisters who always care, support and get my back when I’m down. Thank you for inspiring me a lot and giving me strength to stand still, without you I will not be this far. I love you all.

To my uncles and aunts, thank you for taking care of me for the last few years.

I learnt a lot from you. Hopefully, I make you proud enough.

To hotel I have done my research and other hotel industry. I hope this thesis will give you some contribution and helping in creating a better e-recruitment process.

To my beloved lectures and friends, thank you for being the inspirations and for the support until now. Wish you the best luck in the future.

To whoever needs the contents of this thesis and please kindly use this thesis in the proper and appropriate purposes and I hope this thesis will beneficial to you and assist you in further research and development in the future.

Above all, I would like to thank Jesus who never leave me, give a way when there seems to be no way. Thank you for every single thing, for the strength and Your grace. I love you.

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Ervinna Juni Damayanti ACKNOWLEDGEMENTS

My mom Rahayu S. Santoso and my dad Hanriyanto SH are the first I’d like to express my deepest gratitude for supporting, caring, loving me every single seconds of my life. Thank you for never doubt of me. I just could not ask for a better parent. I love you so much.

Mrs. Munawaroh, SE, MM as my thesis advisor, Ibu Mumun helped and inspired me through her acknowledge during my thesis. Thank you for your company through up and down, your patience, your effort and your time, so I can accomplish my thesis. Calm me down before the storm.

Michael Roberts, MBA, thank you for your kind assistance in checking and correcting my grammar and vocabulary on my thesis. Imagine how’s my thesis without your assistance. Once again, thank you for your magic.

To all the lectures and SGU administrative staff who have been very helpful in assisting me. Thank you for your advises and supports. You guys are amazing.

Special thank you to Andreas Setiawan, thank you for always being amazing all the times through my ups and downs. Thank you for every suggestion and advice, for always been there for me.

To all my friends, all the members of HTM 2010, thank you for being who you are. Thank you for being part of my journey life in SGU, for all the memories, for all ups and downs, for tears and laughs, for sharing and caring. Wish you guys the best luck in your future ahead. Realize that we still have a long way to go to achieve our dreams. This is just beginning. Don’t be afraid to have a big dream because when you are brave enough to dream about it, it means you are strong enough to reach it.

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Ervinna Juni Damayanti To all my high school friends, especially to all my girls, thank you for always listens, cares, supports, and loves. You guys just too priceless.

To the hotel I have done my research thank you. Thank you for the one who helped me to get the permission, who helped me during this thesis process, and to all the respondents in X hotel. Thank you for your time spending during my thesis process. Without your assistance, this thesis would not be completed.

To everyone who has helped and supported me, I just cannot mention here one by one, thank you.

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Ervinna Juni Damayanti TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

COPYRIGHT PAGE ... 4

DEDICATION ... 5

AKCNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 8

LIST OF FIGURES ... 12

LIST OF TABLES ... 13

CHAPTER 1 – INTRODUCTION 1.1 Background ... 14

1.2 Research Problem ... 16

1.3 Research Question ... 16

1.4 Research Purpose ... 16

1.5 Significance of Study ... 17

1.6 Scope and Limitation ... 17

1.7 Thesis Structure ... 18

CHAPTER 2 – LITERATURE REVIEW 2.1 Framework of Thinking ... 19

2.2 Recruitment ... 20

2.2.1 Definition of Recruitment ... 20

2.2.2 Recruitment Categories ... 20

2.2.3 Recruitment Needs ... 22

2.2.4 Trends of Recruitment ... 23

2.3 E-Recruitment ... 24

2.3.1 Definition of E-Recruitment ... 24

2.3.2 The Purpose and the Importance of E-Recruitment ... 24

2.3.3 E-Recruitment Market ... 25

2.3.4 Method of E-Recruitment ... 25

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2.3.5 Advantages and Disadvantages of E-Recruitment ... 26

2.3.6 E-Recruitment: Hiring Process ... 28

2.3.7 Techniques of E-Recruitment ... 28

2.4 Factor Affecting E-Recruitment ... 29

2.4.1 Internal Factor ... 29

2.4.2 External Factor ... 30

2.5 The Issue of Competing Legal Concerns ... 31

2.6 E-Recruitment Challenges ... 32

2.6.1 From the employer viewpoint ... 32

2.6.2 From a candidate viewpoint ... 32

2.7 Impact of Online Recruiting on Business and Job Seekers ... 32

2.7.1 Impact on Businesses ... 34

2.7.2 Impact on Job Seekers ... 35

2.8 The Difference Between E-Recruitment and Conventional Recruitment 36 2.9 Previous Research ... 37

2.10 Research Model ... 38

CHAPTER 3 – METHODOLOGY 3.1 Research Process ... 39

3.2 Type of Study ... 40

3.3 Type of Data Sources ... 40

3.3.1 Primary Data ... 40

3.3.2 Secondary data ... 41

3.4 Data Collection ... 41

3.5 Population Sample ... 41

3.5.1 Population ... 41

3.5.2 Sample Size ... 41

3.6 Question Design ... 42

3.7 Research Questions and Hypotheses ... 44

3.8 Data Validity and Reliability ... 44

3.8.1 Validity ... 45

3.8.2 Reliability ... 46

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3.9 Data Analysis ... 46

3.9.1 Pre-testing ... 46

3.9.2 Post-testing ... 47

3.9.3 SPSS Testing ... 47

3.9.4 Normality Test ... 47

3.9.5 SEM (Structural Equation Modeling) ... 47

3.9.6 Goodness of FIT Criteria ... 48

CHAPTER 4 - RESULT AND DISCUSSION 4.1 Hotel Profile ... 51

4.2 Respondent Profile ... 51

4.2.1 Gender ... 51

4.2.2 Age ... 52

4.2.3 Department ... 52

4.3 Descriptive Analysis ... 53

4.4.1 Pre-testing ... 53

4.4.1.1 Validity for pre-testing ... 53

4.4.1.2 Reliability for Pre-testing ... 54

4.4.2 Post-Testing ... 55

4.4.2.1 Validity for Post-testing ... 55

4.4.2.2 Reliability ... 55

4.4.2.3 Normality Test ... 56

4.5.1 SEM Model ... 57

4.5.2 Model Fit Value ... 62

4.6 Regression Weights ... 64

4.7 Hypothesis ... 65

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Ervinna Juni Damayanti CHAPTER 5 – CONCLUSION AND RECOMMENDATION

5.1 Conclusions ... 67

5.2 Recommendations ... 69

GLOSSARY ... 71

REFERENCES ... 73

APPENDIX ... 77

APPENDIX A – QUESTIONNAIRE IN BAHASA INDONESIA ... 78

APPENDIX B – QUESTIONNAIRE IN ENGLISH ... 81

APPENDIX C – QUESTIONNAIRE WITH RESPONSES ... 84

APPENDIX D – AMOS OUTPUT ... 85

APPENDIX E – NORMALITY DATA ... 87

APPENDIX F – RAW DATA ... 90

CURRICULUM VITAE ... 94

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Ervinna Juni Damayanti LIST OF FIGURES

Figure 2.1 Framework of Thinking ... 19

Figure 2.2 Hiring Process ... 28

Figure 2.3 Research Model ... 38

Figure 3.1 Research Process ... 39

Figure 4.1 Respondents by Gender ... 51

Figure 4.2 Respondents by Age ... 52

Figure 4.3 Respondents by Departments ... 52

Figure 4.4 Structural Equation Model - Path Analysis ... 57

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Ervinna Juni Damayanti LIST OF TABLES

Table 2.1 Previous Research ... 37

Table 3.1 PHstat- sample size ... 42

Table 3.2 Research Design ... 42

Table 3.3 Criteria of Goodness of Fit ... 48

Table 4.1 Descriptive Analysis Results ... 53

Table 4.2 KMO and Bartlett’s Test – Pre-testing ... 54

Table 4.3 Reliability Statistics- Pre-testing ... 54

Table 4.4 Reliability Result - Pre-testing ... 54

Table 4.5 KMO and Bartlett’s Test – Post-testing ... 55

Table 4.6 Reliability Statistic - Post-testing ... 55

Table 4.7 Reliability Results - Post-testing ... 56

Table 4.8 Normality Test Result With Outliner Data ... 56

Table 4.9 Normality Test Result Without Outliner Data ... 57

Table 4.10 Model Fit Value ... 62

Table 4.11 Regression Weight ... 64

Table 4.12 Estimate Result ... 64

Table 4.13 Hypothesis Results ... 65

Table 5.1 Rate Result in Internal Factors ... 67

Table 5.2 Estimation Result in Internal Factors ... 68

Table 5.3 Rate Result in External Factors ... 69

Table 5.4 Estimation Result in External Factors ... 69