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Employee Loyalty In Hotel Industry

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Chapter 1 is an overview of the whole research of study context and explain the research problems. In the research, the problem statement is describing the core idea of the study prompting to make a clear explanation on the research objectives to be achieved and the research question to be answered. Besides, researchers also clarified the hypotheses to be tested and elucidate the importance and contribution of conducting this study. In the end of this chapter, conclusion is provided.

1.2 Research Background

The hotel industry is encountering a highly competitive environment worldwide. The formulations of a marketing strategy, strengthening of hotel operations, and upgrading the quality of service have become essential not only for profitability, …show more content…

Employee loyalty can be described in terms of a process, where certain attitudes give rise to certain behaviors. Loyalty has two dimensions which is internal and external. Loyalty is a fundamentally of an emotional attachment. The internal dimension is the emotional components. It includes the feelings of caring, of affiliation and of commitment. Employer must understand their employees feeling and the employees who are facing any problem can consult with counselors that provide by the employer. This can increase the employees’ loyalty to the employer by reducing the turnover rate. Next, external dimension has to do with the way loyalty to manifests itself. This dimension is comprised of the behaviors that display the emotional component and is the part of loyalty that changes the most. According to Rider (1998) as cited in Mehta et al. (2010) found that trust, loyalty and related norms may have a crucial economic role to play and it does not follow that regulation should be used to foster their development. In addition, according to Cunha et al. (2002) state that the relationships of the interplay between culture, structure and leadership which are managed to build

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