Hotel managers’ job satisfaction: Is control more important than structure?

Study Overview

• Title: Hotel managers’ job satisfaction: Is control more important than structure?
• Authors: Lisa Caina, Patrick J. Moreob, and Nadia Hanin Nazlanc
• Institutions: Chaplin School of Hospitality & Tourism Management, Florida International University; University of South Florida Sarasota-Manatee; Faculty of Hotel & Tourism Management, UiTM Cawangan Selangor Kampus Puncak Alam.
• Publication: JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM, 2018, VOL. 17, NO. 4, 465–481
• Purpose: This study examined the relationship between hotel managerial employees’ job satisfaction, their individual Locus of Control (LOC), and their perceptions of the organizational structure in which they work. It also explored the relationship between LOC, organizational structure, and certain demographic variables.
• Key Findings (Abstract): A positive relationship was found between LOC and satisfaction (though contradicted by later detailed results in the discussion). Practical recommendations were developed concerning candidate hiring and employee management.
• Keywords: Locus of control; hospitality management; hotel management; organizational structure; job satisfaction.

Introduction to Key Concepts

• Locus of Control (LOC):
  • One of the most frequently researched personality constructs in psychology and social sciences (Rotter, 1990; Strickland, 1989).
  • Refers to an individual’s generalized belief in their abilities to control life events (Rotter, 1966).
  • Internals (Internal LOC): Believe their actions directly influence outcomes. Prior research suggests they perform more effectively in environments allowing more control over their actions.
  • Externals (External LOC): Believe outcomes are more attributable to outside forces (luck, chance, powerful others) than to their own actions. Previous research suggests they perform better when more control is imposed on them (Rotter, 1990; Spector, 1982).
  • Rotter (1975) suggested identifying an individual’s LOC can potentially predict their behaviors.
• Job Satisfaction:
  • Increased interest in personality effects on job satisfaction since the mid-1980s (Spector & Jex, 1991).
  • LOC has a significant relationship with job satisfaction (Spector, 1982).
  • Rotter (1966) characterized internals as more self-reliant, challenge-seeking, and prone to greater job satisfaction, while externals seek less challenge and experience lower job satisfaction.
  • Generally refers to the pleasurable or positive emotional state resulting from the evaluation of one’s job or job experiences (Locke, 1976).
  • Influenced by variables like needs, values, expectancies, perceptions, and their interrelationships.
  • Job satisfaction results from the perception that one's job fulfills or allows fulfillment of one's important job values (Locke, 1976, p. 1332).
  • Contributes to organizational effectiveness through improved productivity, efficiency, increased organizational commitment, and reduced absenteeism and turnover.
  • Satisfied employees tend to encounter challenges, assume responsibilities, make creative decisions, and overcome obstacles (Andrisani, 1978).
• Organizational Structure:
  • Characteristics of the work environment (e.g., organizational structure) may interact with employees’ personal characteristics and affect individual job satisfaction.
  • Categorized into centralized or decentralized based on the extent of decision-making authority.
  • Decentralized Organization: Employee job satisfaction can be enhanced when they can take actions and make decisions furthering self-interests (Chia, 1995).
  • Suggests that firms should consider how organizational structure interacts with personality to affect job satisfaction when hiring and placing employees.
  • Provides the basic foundation within which an organization functions, affecting employees' judgments and perceptions and playing a crucial role in human resource issues (Bowrin, 1998).
  • Centralization: Refers to the inverse of the amount of delegation of decision-making authority and the extent of participation by organizational members (Aiken & Hage, 1968).
    • Externals tend to perceive the organization as highly centralized (low participation, high authority hierarchy).
    • Centralized structures, with more rules and guidance, high control, and less discretion, are expected to be more congruent with externals' characteristics.
  • Decentralization: Refers to the level of autonomy delegated to managers for decision-making. Higher decentralization means decisions are made at lower hierarchical levels (Chia, 1995).
    • Internals are likely to participate in decision-making and make decisions without constant superior consultation.
    • Internals, believing they control their environment, may be more sensitive to formal policies and more receptive to a decentralized structure.
    • High centralization reduces managers’ perceptions of job autonomy and variety, and increases pressure on top managers to achieve objectives (Katsika et al., 2011).

Prior Research and Hypotheses

• Locus of Control in Hospitality: Relatively few research studies in hospitality management regarding LOC. Important for this multi-billion dollar industry to understand what types of workers are best suited to certain areas.
• Rotter (1966) found managers tend to be more internal-oriented than non-management personnel.
  • Externals are more likely to express unrealistic career aspirations, are less able to cope with reality demands, typically aren't leaders, and experience less job satisfaction.
  • Since managerial employees set the tone, understanding factors contributing to their satisfaction is crucial.
• LOC is associated with motivation, profoundly affecting employees and organizations (Anderson, 1977).
• Correlates with job performance, leadership behavior, perceptions of job, and work motivation (Spector, 1982).
• May act as a mediating variable in job stress and strain (Spector & O’Connell, 1994).
• Related to attitudes toward work and client participation in vocational rehabilitation (Duvdevany & Rimmerman, 1996).
• Tillman, Smith, and Tillman (2010) found a positive relationship between internal LOC and overall job satisfaction.
• Lee (2013) established a significant positive relationship between LOC and organizational socialization and identification.
• Malik, Butt, and Choi (2014) found LOC moderated the relationship between extrinsic rewards and intrinsic motivation, with internals experiencing significantly higher effects of extrinsic rewards on their intrinsic motivation to perform creatively.
• Internal LOC positively influenced intrinsic task motivation and empowerment of frontline hospitality employees (Jha & Nair, 2008).
  • Understanding LOC orientation has implications for selection and training in five-star hotels (Jha & Nair, 2008, p. 6).
  • In a service-oriented environment, a lack of perceived control can negatively impact service quality.

Hypotheses of the Study:

• $H1$: There is a significant correlation between LOC and organizational structure.
• $H2$: There is a significant correlation of LOC on job satisfaction.
• $H3$: There is a significant correlation of organizational structure on job satisfaction.
• $H4$: There is a significant interaction between LOC and organizational structure in relation to job satisfaction.

Methodology

• Research Design: A cross-sectional study was conducted to collect data. This design is suitable for reliably collecting descriptive data on large populations to observe relationships between variables at a single point in time, though it doesn't capture changes over time (Churchill & Brown, 2003; Fink, 2003).
• Population and Sample:
  • Target Population: Managerial employees at 4- and 5-star hotels.
  • Sampling Method: Convenience sampling was used due to limitations in human resources, financial resources, and time (Gall, Borg, & Gall, 1996).
  • Sample Size: A sample of $n = 112$ hotel managerial employees was drawn from a national sample using an online market research company (Qualtrics).
• Procedures:
  • An online survey was utilized for efficient data collection from a geographically scattered sample.
  • The survey included a cover letter explaining its purpose, emphasizing participant involvement, and assuring confidentiality.
  • Closed, forced-choice responses were used exclusively to enhance accuracy and ease of completion (Fink & Kosecoff, 1998).
• Instruments (Four-part, self-reporting questionnaire):
  1. Rotter I-E Locus of Control Scale:
     • The most widely used measure of LOC.
     • A 29-item, forced-choice test including six filler items to disguise the test's purpose.
     • Subjects choose between two statements (e.g., (a)