It is a well known fact that every employee wants to earn fair wages and salaries. Thus, it can be argued that money is the basic motivational factor for job satisfaction. But many scholars have proven that there are many different motivational factors for job satisfaction and only money cannot be a good motivational factor for employees (Panwar and Gupta, 2012, p1). Further, some scholars argue that the motivational factors depend on the nature of the industry and only money can motivate people in those industries (Mullins, 2005). The primary objective of this work is to understand whether money is the only motivator for those who work in hospitality industry. The Hilton hotel has been selected to provide justifications and examples for the argument.
The key words of this assignment are motivation and hospitality industry. Daft (2010) defines motivation as “the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action”. According to this definition, forces of motivation can be either internal or external. Further, these factors should arouse enthusiasm and persistence of a person. The major motivational approaches are Abraham Maslow’s Hierarchy of Needs, Clayton Alderfer’s ERG theory, Frederick Herzberg’s two-factor approach to motivation and David McClelland’s Acquired needs.
Barrows and Powers (2009) define the hospitality industry as “hotels, restaurants and other kind of businesses that offer shelter, food or both to people away from their homes”. According to this definition, hospitality industry involves with large businesses that basically offer food and lodging for people.
Panwar and Gupta (2012) discuss the non-monitory motivational factors which can be used to motivate employees in hospitality industry. These factors can be summarized as communication, training, fringe benefits, and good working environment (Panwar and Gupta, 2012, p41). ERG theory explains effective communication as a good motivational factor under the relatedness needs. In the hospitality industry, poor communication leads for low productivity and ultimately it leads for de-motivation. The Hilton chain has 3,600 properties around the world and approximately 500,000 workers work for these properties. Being a service organization, effective communication should flow from top management to down the line. Thus, effective communication is vital for the business success. The CEO of Hilton Chris Nassetta said that effective communication is the key motivational factor of Hilton employees (www.hiltonworldwide.com/about/leadership, accessed May 2012). This view of the top management has led its employees for highly motivated.
The second identified motivational factor for the employees who are in hospitality industry is training. According to the Maslow’s hierarchy of needs, an opportunity for training is a self-actualization need of employees (Armstrong, 2008). In today’s world, many organizations conduct training for employees to gain the competitive advantage through their employees. Continues training opportunities have led the Hilton to become one of the most valued hospitality brands in the world. Further, that continues training has addressed the self-actualization needs of employees and it has finally paved the way for a motivated workforce (Chen, Wang Wen & Chu Ying, 2011).
The next non-monitory motivational factor of hospitality industry is fringe benefits. According to Barrows (2009) employees in the hospitality industry are enjoying many fringe benefits as per the industry standards. Barrows (2009) further summarized these fringe benefits as accommodation, meals, traveling allowances, uniform and laundry facilities, medical benefits, entertainment allowances, and holiday packages. As per the Maslow’s Hierarchy of Need theory, these fringe benefits address the safety needs of employees. The Hilton chain has clearly understood that fringe benefits is one of the key motivational factors to their employees and in that view, they have provided almost all above fringe benefits to their employees (Wise, 2011). Further, these fringe benefits have paved the way for good work-life balance of Hilton employees. Accommodation, meals and medical benefits play major roll and it leads for highly motivated workforce.
Maslow explains good working condition as a belongingness need. Panwar and Gupta (2012) argue that good working conditions belong to self-actualization needs. Opportunities for training, career advancement, career growth and good working culture can be identified as good working environment. These good working conditions obviously motivate employees. As discussed above, Hilton has identified employees’ training as a tool for competency development and motivation. Because of this strategy, Hilton has implemented many training programmes for their employees. Further, Hilton management is very keen about the career development of its employees. Succession plan, internal recruitments, personal development and management development programmes are vital areas of Hilton HR strategy. Further Hilton value statement clearly mentions about providing good working condition for its employees. (www.hiltonmanagementservices.com, accessed May 2012). These strategies have led to a motivated workforce at Hilton.
According to the above discussion, it is clear that money is not the only factor for motivation at hospitality industry. There are many other variables which lead the motivation and those are interdependent. As per the two-factor approach of Herzberg, money is a hygiene factor. This theory describes hygiene factors as area of dissatisfaction. Thus, Herzberg rejects money as a motivator (Panwar and Gupta, 2012). The argument of Herzberg is that money only can motivate employees up to certain extent. Further, soon after supply of money is stopped the dissatisfaction is started. Also, some scholars have argued that money only acts a generalized conditioned reinforce (Barrows, 2009). According to this argument, money work as a conditional motivator and if money is given, employees will temporally motivate and in the absence of money, employees will get dissatisfaction.
As discussed above, there are many factors for motivation in the hospitality industry apart from money. Most of Hilton employees may not join another company for the sake of money whether they offer higher salary above the market standards. This has happened because Hilton has many other motivational factors for its employees rather than money. Effective communication, training, fringe benefits and good working conditions are most successful motivational factors rather than money at hospitality industry. Considering the above all arguments, it can be determined that money cannot along motivate employees in the hospitality industry.
References
Barrows, C.W. and Powers, T. (2009) Introduction to the hospitality industry, 7th Edition, John Wiley and Sons, New Jersey.
Chen, Y, Wang W.C, & Chu Y.C (2011) A Case Study on the Business Performance Management of Hilton Hotels Corp, International Business Research, 4, 2, pp. 213-218, Business Source Complete, EBSCOhost, viewed 12 May 2012
Hilton Hotels. www.hiltonworldwide.com, accessed May 2012
Human Resources Development. www.hiltonmanagementservices.com, accessed May 2012
Mullins, L. (2005) Management and Organizational Behavior, 7th ed. Prentice Hall, Pearson Education, Edinburgh
Panwar, S. and Gupta, N. (2012) Money: Does It Really Affect Hotel Employee’s Performance As A Motivational Factor, VSRD international journal of business and management research, VSRD-IJBMR, Vol. 2 (2), 2012, 38-46
Shaping global success. www.hiltonworldwide.com/about/leadership, accessed May 2012
Wise, M.Z. (2011) Reinventing the Hilton Hotel, Travel & Leisure, 41, 11, p. 99, Master File Complete, EBSCOhost, viewed 13 May 2012
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