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Organisational climate and its influence upon performance: A study of Australian hotels in South East Queensland Michael Cameron Gordon Davidson B.A., M.Ed.Admin., Cert. Ed., Diploma Hotel and Catering Management Faculty of Commerce and Management School of Marketing and Management Griffith University Submitted in fulfillment of the requirements of the degree of Doctor of Philosophy August 2000

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Page 1: Organisational climate and its influence upon performance_A .pdf

Organisational climate and its influence upon performance:A study of Australian hotels in South East Queensland

Michael Cameron Gordon DavidsonB.A., M.Ed.Admin., Cert. Ed., Diploma Hotel and Catering

Management

Faculty of Commerce and ManagementSchool of Marketing and Management

Griffith University

Submitted in fulfillment of the requirements of the degree ofDoctor of Philosophy

August 2000

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Abstract

This study gathered data from 14 four to five-star hotels in South-East

Queensland, Australia, in an attempt to examine the nature and degree of influence

organisational climate has upon the performance of hotels. Employee perception of

customer satisfaction was studied both as an index of performance and as an intervening

variable between organisational climate and financial performance as indexed by

revenue per available room (REVPAR). The data provided a description of a young,

relatively gender balanced, well educated and trained work force which received

relatively low levels of financial remuneration and displayed very high levels of

turnover.

A new instrument was used to measure the dimensions of organisational climate

across the hotels. This instrument represented a modification of that presented by Ryder

and Southey (1990), which itself was a modification of the 145 item psychological

climate questionnaire of Jones and James (1979). The instrument represented a subset of

70 items of the Ryder and Southey instrument. Responses to all items within the

instrument were on a 7 point anchored scale. Principal components analysis (PCA)

produced results consistent with earlier versions of the instrument, which had been

reported elsewhere. This analysis described organisational climate within the sample to

be composed of 7 underlying dimensions; Leader facilitation and support, Professional

and organisational esprit, Conflict and ambiguity, Regulations, organisation and

pressure, Job variety, challenge and autonomy, Workgroup co-operation, friendliness

and warmth, and Job standards. These dimensions were judged to be consistent with

those reported earlier by Jones and James, and by Ryder and Southey. Poor support was

found for the first structural model that proposed that employee demographic variables

would affect organisational climate and that organisational climate would affect

customer satisfaction (although the latter link was quite strong). The most important

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finding of the study was the support for a second structural model when it was found

that variation in the 7 dimensions of organisational climate accounted for 30% of the

variation in Employee Perception of Customer Satisfaction. Furthermore, that Employee

Perception of Customer Satisfaction accounted for 23% of the variation in REVPAR

between the hotels. Possible extensions of this study using direct measures of customer

satisfaction and expanding it to include hotels of different star ratings are discussed.

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Table of Contents

ABSTRACT.................................................................................................................................................I

TABLE OF CONTENTS.........................................................................................................................III

LIST OF TABLES ...................................................................................................................................VI

LIST OF FIGURES ..............................................................................................................................VIII

STATEMENT OF ACKNOWLEDGEMENT.......................................................................................IX

1.0 INTRODUCTION ......................................................................................................................... 1

1.1 BACKGROUND TO THE RESEARCH................................................................................................... 11.2 RESEARCH PROBLEM ...................................................................................................................... 31.3 JUSTIFICATION OF THE RESEARCH................................................................................................... 41.4 METHOD ......................................................................................................................................... 81.5 ORGANISATIONAL AND OPERATIONAL STRUCTURE OF A HOTEL ................................................... 101.6 DEFINITIONS................................................................................................................................. 131.7 OUTLINE OF THE THESIS................................................................................................................ 14

2.0 LITERATURE REVIEW OF ORGANISATIONAL CLIMATE........................................... 17

2.1 AN INTRODUCTION TO ORGANISATIONAL CLIMATE LITERATURE .................................................. 172.2 EARLY FORMULATIONS OF THE CLIMATE CONSTRUCT .................................................................. 192.4 THE DISTINCTION BETWEEN CULTURE AND CLIMATE.................................................................... 232.5 DEVELOPMENT OF CLIMATE INSTRUMENTS .................................................................................. 252.6 DIMENSIONS OF ORGANISATIONAL CLIMATE ................................................................................ 272.7 A CRITIQUE OF CLIMATE THEORY ................................................................................................. 322.8 MEASUREMENT ISSUES OF THE MULTILEVEL CLIMATE CONSTRUCT.............................................. 332.9 ORGANISATIONAL CLIMATE AS A VARIABLE IN THEORY AND RESEARCH...................................... 392.10 ORGANISATIONAL CLIMATE AND MODELS OF ORGANISATIONAL FUNCTIONING............................ 432.11 CLIMATE, SERVICE QUALITY AND ORGANISATIONAL PERFORMANCE............................................ 482.12 UTILISATION OF THE CLIMATE CONSTRUCT WITHIN A SERVICE QUALITY PERSPECTIVE................. 512.13 CUSTOMER AND EMPLOYEE PERCEPTIONS OF CUSTOMER SATISFACTION ...................................... 602.14 CLIMATE AND INNOVATION. ......................................................................................................... 612.15 ORGANISATIONAL CLIMATE AND IMPLICATIONS FOR THE HOTEL INDUSTRY................................. 62

3.0 THEORETICAL MODELS AND HYPOTHESES.................................................................. 68

3.1 THE RESEARCH QUESTION............................................................................................................. 683.2 THE DIMENSIONS OF ORGANISATIONAL CLIMATE WITHIN THE HOTELS ......................................... 683.3 THE RELATIONSHIPS BETWEEN EMPLOYEE DEMOGRAPHIC VARIABLES, ORGANISATIONAL CLIMATE,

AND EMPLOYEE PERCEPTIONS OF CUSTOMER SATISFACTION......................................................... 723.4 THE RELATIONSHIPS BETWEEN THE DIMENSIONS OF ORGANISATIONAL CLIMATE, EMPLOYEE

PERCEPTIONS OF CUSTOMER SATISFACTION, AND PERFORMANCE OF HOTELS. .............................. 74

4.0 METHOD..................................................................................................................................... 76

4.1 INTRODUCTION ............................................................................................................................. 764.2 JUSTIFICATION FOR THE PARADIGM AND METHOD ........................................................................ 774.3 IDENTIFICATION AND RATIONALE FOR THE SAMPLE...................................................................... 794.4 GAINING CO-OPERATION OF THE HOTELS...................................................................................... 824.5 FORMULATION OF THE SURVEY INSTRUMENTS ............................................................................. 86

4.5.1 The organisational climate questionnaire.......................................................................... 864.5.2 Hotel profile and hotel manager's questionnaire ............................................................... 93

4.6 PERCEPTIONS OF CUSTOMER SATISFACTION MEASURE.................................................................. 954.7 ORGANISATIONAL PERFORMANCE�REVENUE PER AVAILABLE ROOM (REVPAR)........................ 96

4.7.1 Occupancy percentage ....................................................................................................... 974.7.2 AVERAGE DAILY ROOM RATE ....................................................................................................... 97

4.7.3 Revenue per Available Room (REVPAR) ........................................................................... 994.8 PILOT AND PRE-TESTING PROCEDURE ........................................................................................... 99

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4.9 ADMINISTRATION OF CLIMATE SURVEY...................................................................................... 1024.10 DATA COLLECTION AND SORTING PROCEDURES ......................................................................... 104

5.0 HOTEL GENERAL OPERATING STATISTICS AND STAFF DEMOGRAPHIC DATA..................................................................................................................................................... 106

5.1 INTRODUCTION ........................................................................................................................... 1065.2 ANALYTICAL PROCEDURES......................................................................................................... 1065.3 HOTEL LEVEL DATA.................................................................................................................... 1085.4 STAFF LEVEL DATA..................................................................................................................... 1185.5 SUMMARY AND DISCUSSION....................................................................................................... 142

6.0 THE DIMENSIONS OF ORGANISATIONAL CLIMATE IN 14 AUSTRALIAN HOTELS..................................................................................................................................................... 146

6.1 INTRODUCTION ........................................................................................................................... 1466.2 RELIABILITY ANALYSIS............................................................................................................... 146

6.2.1 Approaches to the estimation of reliability of a test instrument ....................................... 1466.2.2 Reliability analysis of responses to the 70 item version of the psychological climatequestionnaire.................................................................................................................................... 147

6.3 STATISTICAL TECHNIQUES TO IDENTIFY UNDERLYING DIMENSIONS IN A DATA MATRIX OFPARTICIPANT RESPONSES ............................................................................................................ 153

6.3.1 Factor analysis ................................................................................................................. 1536.3.2 Principal components analysis......................................................................................... 153

6.4 PRINCIPAL COMPONENTS ANALYSES OF ORGANISATIONAL CLIMATE DATA ................................ 1546.5 VARIABLES ENTERED INTO THE PCA......................................................................................... 1576.6 PROPORTION OF VARIANCE EXPLAINED BY PRINCIPAL COMPONENTS.......................................... 1576.7 ROTATED PRINCIPAL COMPONENT LOADINGS ............................................................................. 1586.8 INTERPRETATION OF MEANING OF THE PRINCIPAL COMPONENTS ................................................ 1636.9 VARIATION IN CLIMATE DIMENSIONS BETWEEN HOTELS............................................................. 166

6.9.1 Generating climate dimension sores ................................................................................ 1666.9.2 Comparison of Climate Dimensions between the 14 Hotels in the Study......................... 168

6.10 SUMMARY AND DISCUSSION....................................................................................................... 170

7.0 ANALYSES OF THE RELATIONSHIPS BETWEEN; EMPLOYEE DEMOGRAPHICVARIABLES, ORGANISATIONAL CLIMATE, CUSTOMER SATISFACTION, ANDREVPAR..................................................................................................................................... 177

7.1 OVERVIEW.................................................................................................................................. 1777.2 STATISTICAL ANALYSES AND MODELLING TECHNIQUES USED IN THIS CHAPTER......................... 178

7.2.1 Multiple linear regression ................................................................................................ 1787.2.2 Structural equation modelling.......................................................................................... 179

7.3 STRUCTURAL MODEL A: RELATIONSHIP BETWEEN DEMOGRAPHIC VARIABLES, ORGANISATIONALCLIMATE AND CUSTOMER SATISFACTION................................................................................... 181

7.3.1. Multiple linear regression analysis examining the relationship between employeedemographic variables and organisational climate proposed by structural model A...... 182

7.3.2 An examination of the relationship between organisational climate and employeeperception of customer satisfaction as proposed by Structural Model A. ........................ 184

7.3.3 Structural equation modeling ........................................................................................... 1867.3.4 Summary of analysis of Structural Model A..................................................................... 188

7.4 STRUCTURAL MODEL B: THE RELATIONSHIP BETWEEN ORGANISATIONAL CLIMATE, CUSTOMERSATISFACTION, AND REVPAR. .................................................................................................. 188

7.4.1 Multiple linear regression analysis examining the relationship between organisationalclimate dimensions and employee perception of customer satisfaction proposed byStructural Model B. .......................................................................................................... 190

7.4.2 An examination of the relationship between REVPAR and employee perception ofcustomer satisfaction as proposed by Structural Model B. .......................................... 192

7.4.3 Structural equation modeling ........................................................................................... 1937.4.4 Summary of analysis of Structural Model B..................................................................... 194

7.5 SUMMARY AND DISCUSSION ....................................................................................................... 194

8.0 GENERAL DISCUSSION AND CONCLUSIONS................................................................. 198

8.1 OVERVIEW OF STUDY.................................................................................................................. 1988.2 HOTEL OPERATING STATISTICS ................................................................................................... 1988.3 STAFF DEMOGRAPHIC DATA........................................................................................................ 1998.4 VARIATION IN STAFF DEMOGRAPHIC VARIABLES BETWEEN HOTELS ........................................... 201

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8.5 THE MEASUREMENT OF ORGANISATIONAL CLIMATE WITHIN THE HOTELS OF THE SAMPLE......... 2028.6 TESTING STRUCTURAL MODEL A ............................................................................................... 2058.7 TESTING STRUCTURAL MODEL B ............................................................................................... 2078.8 IMPLICATIONS OF THE RESULT THAT STRUCTURAL EQUATION MODEL B IS SUPPORTED ............ 2088.9 THE VALIDITY OF MEASURES USED IN THIS STUDY...................................................................... 210

8.9.1 The index of financial performance REVPAR .................................................................. 2108.9.2 Organisational climate..................................................................................................... 2108.9.3 Customer satisfaction ....................................................................................................... 213

8.10 THE ISSUE OF MULTILEVEL VARIABLES AND THE INTERPRETATION OF RELATIONSHIPS .............. 2148.11 GENERALISING RESULTS............................................................................................................. 2178.12 FUTURE RESEARCH ..................................................................................................................... 2188.13 SUMMARY AND CONCLUSION...................................................................................................... 218

TABLE OF APPENDICES ................................................................................................................... 220

APPENDIX A ......................................................................................................................................... 221

ORGANISATIONAL CLIMATE QUESTIONNAIRE, EMPLOYEE DEMOGRAPHICS, ANDEMPLOYEE PERCEPTION OF OPERATIONS AND CUSTOMER SATISFACTION . 221

APPENDIX B ......................................................................................................................................... 231

HOTEL PROFILE INSTRUMENT..................................................................................................... 231

APPENDIX C ......................................................................................................................................... 233

HOTEL MANAGERS' DEMOGRAPHICS, OPERATION PERFORMANCE AND PERCEPTIONOF CUSTOMER SATISFACTION......................................................................................... 234

APPENDIX D ......................................................................................................................................... 240

STAFF DEMOGRAPHIC DATA AND CONTINGENCY TABLE ANALYSES ........................... 240

APPENDIX E ......................................................................................................................................... 253

RELIABILITY ANALYSIS AND ........................................................................................................ 253

PRINCIPAL COMPONENTS ANALYSIS OF EMPLOYEE ORGANISATIONAL CLIMATEDATA.......................................................................................................................................... 253

APPENDIX F.......................................................................................................................................... 282

MODEL TESTING................................................................................................................................ 282

PART 1 STRUCTURAL EQUATION MODEL A............................................................................ 283

PART 2 STRUCTURAL EQUATION MODEL B ............................................................................ 291

REFERENCES....................................................................................................................................... 300

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List of Tables

Table 2.1 Contrasting: Organisational culture and organisational climate .............24

Table 2.2 Comparison of climate dimensions across studies ..................................30

Table 2.3 Climate for service (in banks) .................................................................55

Table 2.4 Comparison of HRM climate dimensions ...............................................57

Table 4.1 70 items of the modified version of the PCQ used in this study and 35 the

�a priori� scales used by Jones and James (1979). ..................................89

Table 5.3.1 Hotel operational statistics ....................................................................109

Table 5.3.2 Rooms business mix ..............................................................................112

Table 5.3.3 Hotel revenue mix percentages and key employment percentages .......114

Table 5.3.4 Comments by hotels on what affected trading conditions.....................117

Table 5.4.1 Response rate for the survey of the 14 hotels........................................119

Table 5.4.2 Gender � employees and managers .......................................................120

Table 5.4.3 Gender of employees for each of the 14 hotels .....................................122

Table 5.4.4 Age profile of employees and managers ...............................................124

Table 5.4.5 Age profile of employees for each of the 14 hotels...............................125

Table 5.4.6 Educational level of employees and managers......................................126

Table 5.4.7 Educational level of employees for each of the 14 hotels .....................127

Table 5.4.8 Organisational tenure for employees and managers..............................128

Table 5.4.9 Organisational tenure for employees for each of the 14 hotels .............130

Table 5.4.10 Job tenure for employees and managers................................................131

Table 5.4.11 Job tenure for employees for each of the 14 hotels ...............................132

Table 5.4.12 Gross salary for employees and managers ............................................133

Table 5.4.13 Gross salary for employees of the 14 hotels..........................................134

Table 5.4.14 Mode of employment for employees.....................................................135

Table 5.4.15 Mode of employment for employees for the 14 hotels..........................136

Table 5.4.16 Hours worked by employees .................................................................137

Table 5.4.17 Hours worked by employees for the 14 hotels ......................................138

Table 5.4.18 Time since last training session for employees and managers ..............139

Table 5.4.19 Time since last training session for employees for the 14 hotels ..........141

Table 5.4.20 Employees and managers were asked do you need training?................142

Table 6.1 Statistics for each of the 70 items of the modified version of the

Psychological Climate Questionnaire entered into the reliability

analysis. .................................................................................................149

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VII

Table 6.2 Percentage of variance explained by Principal Components with

Eigenvalues greater than 1.....................................................................158

Table 6.3 Primary Rotated Component loadings for items of the modified version

of the PCQ. Also included for comparison purposes are the factors upon

which those items loaded in the earlier studies of Jones and James (1979)

and Ryder and Southey (1990). .............................................................160

Table 6.4 Relationship between principal components (Factors) found in this study,

and those found by Jones and James (1979) and Ryder and Southey

(1990). The proportion of items falling on the corresponding factor in

each of the earlier studies is also indicated. ..........................................164

Table 6.5 Mean scores on climate dimensions and for the composite measure of

organisational climate across the 14 hotels in the study........................168

Table 6.6 Summary of results of 7 oneway ANOVAs. Each ANOVA compared

the 14 means of each of the hotels on one of the 7 dimensions of

organisational climate............................................................................169

Table 7.1 Regression coefficients and associated probabilities for multiple linear

regression using demographic variables to predict composite measure of

Organisational Climate. .........................................................................184

Table 7.2 Pearson r correlation coefficients examining the relationship between the

Composite Measure of Organisational Climate and Employee

Perceptions of Customer Satisfaction for each of the Hotels participating

in the study. ...........................................................................................185

Table 7.3 Mean Composite Measure of Organisational Climate, Mean Employee

Perception of Customer Satisfaction and REVPAR for each of the 14

Hotels.....................................................................................................186

Table 7.4 Goodness of fit and parsimony of fit indices for structural equation

analysis. .................................................................................................187

Table 7.5 Correlations between Employee Perception of Customer Satisfaction and

each of the 7 dimensions of Organisational Climate.............................190

Table 7.6 Regression coefficients and associated probabilities for Multiple Linear

Regression using Organisational Climate Dimensions to predict

Employee Perception of Customer Satisfaction. ...................................191

Table 7.7 Goodness of fit and parsimony of fit indices for structural equation

analysis. .................................................................................................193

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List of Figures

Figure 1.1 General Hotel Organisational Chart ........................................................11

Figure 2.1 Climate Formation (from Ashforth, 1985) ..............................................41

Figure 2.2 Moran and Volkwein (1992) depiction of culture and climate ...............42

Figure 2.3 Jones and James 1976 Model Of Organisational Functioning ................45

Figure 2.4 A Model of Climate, Culture and Productivity (Adapted from Kopelman,

Brief And Guzzo 1990) ...........................................................................47

Figure 2.5 General Factor of Psychological Climate (Reproduced from James and

James (1989)) ..........................................................................................58

Figure 3.1 Organisational Climate Model A: The dimensions of organisational

climate from the study of Jones and James (1979)..................................70

Figure 3.2 Organisational Climate Model B: The dimensions of organisational

climate from the study of Ryder and Southey (1990). ............................71

Figure 3.3 Structural Model A ..................................................................................73

Figure 3.4 Structural Model B ..................................................................................75

Figure 6.1 Organisational Climate Model A: The dimensions of Organisational

Climate from the study of Jones and James (1979)...............................155

Figure 6.2 Organisational Climate Model B: The dimensions of Organisational

Climate from the study of Ryder and Southey (1990). .........................156

Figure 6.3 Organisational Climate Model C: The dimensions of Organisational

Climate of the 14 Hotels participating in the current study...................174

Figure 7.1 Structural Model A ................................................................................182

Figure 7.2 Structural Model B ................................................................................189

Figure 8.1 Structural Model A ................................................................................205

Figure 8.2 Structural Model B. ...............................................................................207

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Statement of Acknowledgement

In the preparation of this thesis I would like to acknowledge the assistance and

support of a number of people: Firstly, my supervisors, Dr Nils Timo for his constant

encouragement and support, Professor Peter Brosnan who has given detailed feedback

and advice, Professor Paul Ryder who helped set up the study and survey instrument,

and Dr David Kennedy for his advice.

Apart from my supervisors the author is also indebted to Dr Mark Manning for

his detailed advice and guidance on the statistical procedures and modelling used.

I would also like to thank Debbie Amsler for the work in data input, formatting

and presentation, Lorraine Hauser in assisting in the data collection phases and my

colleagues in the School of Tourism and Hotel Management for their support.

Finally, I must thank my wife, Rosalind, and my family for their encouragement

and support over all the stages of the study.

M.C.G. Davidson

August 2000

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This work has not previously been submitted for a degree or diploma in any university.

To the best of my knowledge and belief, the thesis contains no material previously

published or written by another person except where due reference is made in the thesis

itself.

M.C.G. Davidson

August 2000

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1.0 Introduction

1.1 Background to the research

The hospitality industry is rich in many traditions that the word hospitality itself

conjures up. The Macquarie Dictionary defines hospitality as:

the reception and entertainment of guests or strangers with liberality and

kindness.

The history of the hospitality industry can be traced back to the beginning of the

major civilisations and the need for people to travel, trade and communicate. Religion

played an early part as religious orders saw it as one of their responsibilities to provide

rest, food and shelter for travellers. Hospitality gradually moved from the responsibility

to host travellers for altruistic reasons to a commercial basis with �Inns� being set up at

major cross-roads and places of commerce and governance. The development process of

the travellers� inns took place in Europe, Asia Minor and Asia, and has continued over

the centuries. The advent of mass affordable travel in the last half of the 20th century has

meant that tourism and hospitality has become the major industry of the world (WTO,

1996).

Despite this huge growth it remains one of the least researched of the major

industries in the world today. This lack of basic research has been recognised not only

by the World Tourism Organisation (WTO) but also many individual governments

worldwide. In Australia the federal government has in 1997 provided funds for a Co-

operative Research Centre in Sustainable Tourism that is headquartered at Griffith

University�s Gold Coast campus. It should be noted that the word tourism encompasses

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the hospitality industry that is seen as a major sector within the tourism industry as a

whole.

Integral to the concept of hospitality is the notion of service. For service in a

hospitality setting we must have a service delivery process, and that is provided by

employed staff. A predominant factor in the hospitality industry�s economic importance

is the number of people employed to provide the service. Current estimates by the

Bureau of Tourism Research (BTR) and the World Travel and Tourism Council

(WTTC), reported by the Tourism Forecasting Council (TFC, June 1997) put tourism�s

worth at 7 to 11.5 % of Australian jobs, and between 6 and 10.5 % of gross domestic

product. These estimates vary because of the methodology and approach taken as to

what precisely constitutes tourism and its attendant processes and segments such as

hospitality.

Hospitality as a service industry is provided within various physical structures

(hotels, motels, resorts, clubs, restaurants, etc.), and has a plethora of management

structures and ownership arrangements ranging from independent owner operators to

chain operator�s, e.g., Hilton. The hospitality industry, whilst not seen as a great user of

technology, nonetheless, is reliant upon fairly sophisticated computer equipment for

reservations, accounting and monitoring of energy consumption. Operational

management systems, marketing and finance vary in their sophistication depending

upon, principally, the size of the company. Most importantly it is the staff and

customers which have the biggest impact upon how the process of hospitality service is

carried out. The use of tacit skills, those that interpret the contextual framework and

acknowledge the shared perception of customer and staff member, are crucial to the

enhancement of the service experience (Lammont and Lucas, 1999). Of crucial

importance to the success of an enterprise is the employee perceptions of their

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organisation as expressed through the concept of �organisational climate�, and the

employees� relationship with customers (Schneider, 1994; Francese, 1993; James &

James, 1989; Jones and James, 1976; Kopelman, Brief & Guzzo, 1990; Sinclair, 1996;

Price & Chen, 1993; Shea, 1996, and others).

Organisational climate, as represented by the aggregation of the perceptions of

individual employees within the organisation, has been the focus of considerable

empirical research that can be traced back to the work of Lewin, Lippitt and White

(1939). The large body of climate research - much of this has been included in the

literature review in chapter 2 - has been subjected to very considerable theoretical

debate. This debate concentrates on the methodological issue of how the construct of

climate can be translated into an indicator of organisational effectiveness. Schneider and

Bowen (1985) and Cole, Bacayan and White (1993) have provided evidence that a good

organisational climate does have a positive effect upon service outcomes and hence

improves organisational success.

1.2 Research problem

Many organisational climate studies have been conducted across a range of

industries. Yet no specific academic study of organisational climate in the hospitality

industry has been undertaken to ascertain what effect this construct has on performance.

Therefore, the research question to be addressed by the current research is:

What is the nature and degree of influence that organisational climate has

upon the performance level of organisations within the Australian hotel industry?

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1.3 Justification of the research

The largest single item of operating expenditure for international four or five star

hotels is the cost of labour. By definition, such hotels (four or five stars) rely upon their

reputation for service and customer satisfaction to be profitable. The major resource

component in service delivery is the hotel employee, the deliverer of the service. It is,

therefore, crucial for operational managers to seek an understanding of the hotel

employees� perceptions of their jobs and satisfaction derived. The emphasis upon

employee motivation and satisfaction is within the broad management theoretical

framework of human relations theory. These theories were first espoused by such

theorists as Mayo and colleagues from the Chicago School in the United States and Trist

from the Tavistock Institute in the United Kingdom, who concentrated on the human

aspects of the work and production process (Mullins, 1996).

Information gathered through research on an organisation's employees can be

used as a basis for assessing how operational and strategic goals are to be achieved. This

information should also be utilised in the design of appropriate procedures and systems

that are needed to ensure an individual organisation, such as a hotel, is able to deliver

the service excellence expected by its customers.

Organisational climate surveys are an excellent tool to supply information about

employee perceptions and have been successfully used in a range of organisational

settings (many of which are discussed at some length in chapter 2). Although the hotel

industry represents the largest employment sector in the world's largest industry -

tourism (Olsen, 1996) - when organisational climate research is examined within this

industry, only one major international hotel chain regularly uses this research

methodology and the information gained as a management tool for improving its

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management and operational systems. It is noteworthy that this company, Marriott

Hotels, was the only hotel company to be named in the Fortune Magazine�s top 100

American companies (Branch, 1999). Many individual enterprises within the tourism

industry carry out individual employee surveys but they are seen as one off - identify a

problem, fix it and carry on! Many of the companies have achieved success and

international reputations but what might have been, if they were more cognisant of their

employee perceptions?

The scope and importance of the tourism industry in terms of physical structures

such as hotels in Australia, particularly in Queensland, has seen dramatic growth over

the last 15 years. In the survey area of Southeast Queensland there were 5 international

four and five star hotels in the early to mid-1980�s, whereas today there are in excess of

40 (Queensland Tourist and Travel Corporation, 1997). This level of dramatic growth

has been seen in many other tourism destinations �that have been discovered� e.g., the

growth of the Spanish tourism industry in the 1950�s and 1960�s. Butler (1980) has

described this growth phenomenon in his �resort destination life cycle� that analyses the

development, consolidation, maturity and decline or re-invention of any tourism

destination.

Australia has had the additional impediment in its growth cycle of being

geographically isolated from even its nearest neighbour (Papua New Guinea) with the

majority of the Australian east-coast tourism destinations being at least 7 hours flying

time. Much of Australia�s initial tourism growth in the early 1980�s was based upon the

Asian economic expansion and in particular the Japanese �economic miracle� where an

increasingly affluent middle class saw Australia as an ideal alternative to the U.S. and

Europe. The flying time was less than many U.S. and European destinations and with a

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unique flora and fauna, wonderful natural attractions, and suitable destinations with

appropriate accommodation, Australia became an international tourist destination.

The expansion of the Australian hotel industry saw a substantial increase in the

supply of hotel accommodation accounting for over $1 billion in capital investment

during 1997 - 1998 (Industry Commission, 1996). By the end of 1998, Australian hotels

provided 191,147 beds with an annual turnover of in excess of A$2 billion (Australian

Bureau of Statistics, 1998).

Whilst international visitors proved to be the catalyst for major hotel growth, it

must be remembered that most of the destinations were already in existence serving the

domestic tourism market providing a sound base for the growth. The inflow of Japanese

visitors and the huge strength of the Japanese economy, plus in Australia and certainly

in Queensland a very pro development stance taken by the government, was the catalyst

for large amounts of Japanese investment in hotels and tourism ventures. The actual

number of Japanese visitors to Australia grew from 100,000 in 1985 to 800,000 in 1995

(Tourism Forecasting Council - TFC, 1997).

Japan remains a major source of international visitors despite the recent Asian

economic crisis, and this is especially so for Queensland. The QTTC (1997) reported

that in the year ended August 1997, Queensland received 453,500 Japanese visitors,

31% of Australian international visitors. All other Asian countries accounted for another

28%.

The geographical area that has been surveyed for this study includes the Gold

Coast, Brisbane, the Sunshine Coast and Wide Bay. This area accounted for 6,017,000

(77.7%) of the total Queensland visitors and 25,239,000 (62.3%) of total Queensland

visitor nights in 1997 (QTTC, June 1998)

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This level of significance of the hotel industry was not achieved by capital

investment alone. To run the many new establishments that were planned and built

during the 1980�s and early 1990�s required an enormous expansion in the training and

education systems to provide people with the skills to operate these new properties. The

Technical and Further Education (TAFE) system was expanded and, the then, Colleges

of Advanced Education offered higher education courses in the area of tourism and

hospitality. The skill shortage also meant that a considerable number of people were

recruited from overseas. This included many tourism and hospitality educators who

were required to staff the expanded training and education system (Davidson, 1991).

The overview presented above of Australian and Queensland tourism, very

briefly describes some of the activity that accompanied the expansion of the tourism and

hospitality industry in the 1980�s. The numbers of visitors reinforces the economic

importance that the industry has now assumed. In Butler�s life cycle model, a major

tourism area such as the Gold Coast can be said to have reached its maturity stage. If

stagnation and decline are not to be experienced, new markets, attractions, and levels of

professionalism will be needed for the re-invention process. It is in the area of

professionalism and operational performance that the study of employee attitudes and

perceptions can play a major role. Organisational climate is a management tool that, if

used appropriately, can identify how performance can be enhanced, and this is the

crucial issue for the Australian and Queensland hotel industry into the 21st century.

South East Queensland was selected for this study because it represented a

complete cross section of locations and styles of hotels, e.g., city-centre,

golf/sport/leisure resort, seaside resort, boutique resort, eco-resort and casino

complexes. The area is a major tourism destination for both domestic and international

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visitors and is second only to Sydney in actual international visitor nights (QTTC, June

1998).

1.4 Method

Chapters 2 and 3 will provide a full explanation of the literature, research

method and statistical techniques used. The aim here is to provide only a brief overview

of the main research methods and research strategies.

The research has been carried out in the southern coastal fringe of Queensland

bordered by Wide Bay in the north and the Gold Coast in the south. All of the hotels

studied are of an international four to five star standard and cover a cross-section of

operations that includes business, resort, leisure, group and conference market. The data

was collected by a combination of visits, personal interviews, telephone interviews, 3

composite survey questionnaires and reference to secondary data sources for

confirmation of certain factual and performance indicators. Data collection took place in

the period from August 1997 to February 1998.

The data collection for the main research thrust of examining organisational

climate necessitates a fairly complex survey instrument that is capable of capturing

employee perceptions. Many theorists have worked in this area and a number of

underlying dimensions had been proposed. Among the dimensions proposed for

organisational climate are leadership facilitation and support; job variety, challenge

and autonomy; conflict and pressure; organisational planning to achieve workgroup

effectiveness; workgroup reputation; co-operation, friendliness and warmth; and

interdepartmental co-operation. Prominent in the process of identification of the

various organisational climate dimensions during the 1960�s and 1970�s were Kahn,

Wolfe, Quinn, Snoek and Rosenthal (1964); Taguiri (1966); Litwin and Stringer (1966);

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Schneider and Bartlett (1968); Campbell, Dunnette, Lawler and Weick (1970); Pritchard

and Karasick (1973); James and Jones (1974); and Jones and James (1979).

For this study, the Jones and James (1979) organisational climate questionnaire,

developed originally for the use in the US Navy and subsequently called psychological

climate, was used as the base. This questionnaire has been used by a number of

researchers in different settings and has been proposed to be a reliable and valid

measure through a factor analysis over a range of settings. However, for use in the

hospitality setting there was a need to modify both the language and length. Details of

the modification of the instrument are provided in chapter 3.

Fourteen hotel properties in the study area took part in the project. In addition to

the organisational climate data of the modified Jones and James questionnaire, data

collected from the hotel staff sought their employment perceptions, demographic profile

and employment details. Staff were asked to complete an organisational performance

questionnaire that addressed their view on how the hotel was performing in a number of

key service areas.

Managers at each property were asked to complete an organisational

performance questionnaire. This survey instrument included financial performance

broken down into departmental areas, demographic information, employment detail and

a customer satisfaction rating. The last aspect of the data collection was confidential

property information for both financial and operational performance indicators which

either the general manager or the financial controller was asked to extract from the

audited accounts.

Each property was visited at least twice to explain the details of the research and

the method by which the questionnaires should be distributed, collected and returned. It

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also provided an opportunity to deal with concerns raised by employees, departmental

managers and senior management.

Descriptive and inferential statistics were computed using the SPSS computer

package. Tabulations of frequencies were calculated to compare employee and staff

demographic data between hotels. An exploratory Factor Analysis (Principal

Components) was conducted on the responses to the modified organisational climate

questionnaire used in this study. This analysis enabled the comparisons of underlying

dimensions of the sample with organisational climate dimensions described elsewhere

using different versions of the instrument in Australia and overseas. Correlation and

Multiple Linear Regression were used to examine the relationship between a number of

predictor variables and hotel performance (as indexed by revenue per available room �

REVPAR). To test a number of models proposing explicit causal relationships between

variables, the AMOS structural equation modelling program was used.

1.5 Organisational and operational structure of a hotel

It is appropriate at this point to offer a brief overview of the typical

organisational and operational structure of a hotel in order to provide a context and

reference point for readers of this thesis. Much of the subsequent discussion and the

analysis can only be interpreted if some understanding of the industrial setting is known.

Whilst many would argue that there are as many organisational and operational

systems as there are hotels, nonetheless, there are certain generic similarities which can

be applied to all hotels. A simplified typical hotel organisational chart is provided using

the hierarchical model as an example. (See Figure 1.1)

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These departments and areas of responsibility are typical of a large international

four or five star hotel of 200 rooms plus. Of course, the number of departments and the

naming can and does vary enormously according to the hotel, its location and style of

operations. The organisational chart does provide an indication of the scope of

General Manager

Directors of: Marketing - Food & Beverage � Rooms Division �

Finance - Engineering � Human Resources

Departments and Areas of Responsibility:

Dir. MarketingSalesMarketingP.R.PublicityStatisticsConference

Dir. F & BRestaurantsKitchenBarsRooms ServiceBanqueting

Dir. RoomsHousekeepingFront OfficeReservationsTelephonistsConciergeLaundryLinenCleaning

Dir. FinanceCashierControlStoresAccountsInventoryPayrollSecurity

Dir. Eng.MaintenanceLandscapeGardensDecorationSystems SupportOther (Sports)

Dir. HRMPersonnelRecruitmentTrainingIndustrial Relations

Figure 1.1 General Hotel Organisational Chart

operations that are carried out routinely by any large hotel. It can be readily seen that a

hotel is indeed a large and complex operation and as such is often seen as a microcosm

of a small community.

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From an operational standpoint, the technological and human systems are

diverse and complex. Many large hotel companies seek to codify the operational

procedures. However, it is patently obvious that when there are 200 plus hotel

bedrooms, numerous food and beverage outlets, recreational and conference facilities;

all the departments listed; the staff to run the operation; and the customers that this is

indeed a complex operation.

Whilst standard operational procedures are used in many operations it is

impossible to fully codify what happens in a hotel. So how does a hotel deliver and

maintain a quality operation? It can only be achieved by training and giving employees

the power to make decisions on service actions, within laid down parameters, that

impact upon the guest. This view in supported by Peters (1997) who so aptly points out,

it is the empowerment of the staff that ensures a hotel can deliver the type of service

customers are looking for and increasingly demanding. The only way to deliver high

quality service is to ensure that staff have the appropriate training and are able to make

the required operational decisions.

If the Australian hotel industry can improve its reputation for service and

professionalism and thus be more attractive to both international and domestic visitors,

it will also have the opportunity to improve its profitability. However, this improvement

in reputation and professionalism of the industry as a whole must also be accompanied

by a commensurate increase in the employment image for the industry�s staff. Unless

this improvement takes place and the career path planning is significantly improved, it

will still not be seen as a worthwhile career choice for school leavers and individuals

being displaced in other more traditional manufacturing and agricultural industries. If

this is achieved the hotel industry will have �come of age� in Australia but that state will

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not be attained without a far better understanding of the industry�s employees, which is

where organisational climate research can play a significant role.

1.6 Definitions

The definitions adopted by researchers are often not uniform. Therefore, this

section will outline the definitions used throughout the thesis.

Organisational Climate and Psychological Climate: a full definitional

discussion is provided in chapter 2. Organisational climate will be used for both

constructs. In essence, organisational climate is an individual attitude toward the

organisation and can be subject to change when circumstances change.

Organisational Culture is the framework that is engendered by the

organisational systems and beliefs. It is relatively slow to form but has a high degree of

permanency. In today�s management consultancy parlance, the notion of �Change

Management� is often thought of as cultural change. In many cases, in fact, it should be

organisational climate change. Again, a full discussion is provided in chapter 2.

Construct can be defined in varying degrees of specificity from narrow

concepts to more abstract and complex concepts. No matter what the level of its

specificity a construct cannot be directly measured but it needs to be approximated by a

range of indicators (Hair, Anderson, Tatham and Black, 1995).

Tourism Industry has almost as many definitions as it has parts. Broadly

speaking it encompasses any activity that businesses and/or governments engage in that

provide travel, accommodation, sustenance, recreational and leisure activities outside of

a person's home. Its economic flow-on effect is considerable in not only those directly

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employed but in the many service based industries that also benefit from the tourism

dollar.

Hospitality Industry is a defined sector of the tourism industry that principally

concentrates upon services such as accommodation, food and beverage in all their

forms.

Organisational performance: for the purposes of this thesis, 2 principal

indicators of organisational performance will be used. Those indicators are customer

satisfaction as measured by the perceptions of the hotel employees, and revenue

generated per available bedroom for each of the hotels (REVPAR).

1.7 Outline of the thesis

This introduction chapter provides a general overview of the research question

and the aims of the study. It briefly deals with justification and methodology employed

as well as giving various definitions that have been used.

Chapter 2 is a detailed literature review that addresses the origins and research

traditions of organisational climate. It traces the various debates that have surrounded

organisational climate and how these link with the construct of culture. The effect that

climate has within an organisation and what the processes are that contribute to its

formation are examined. Various contentious issues amongst leading theorists, such as

the aggregation of climate dimensions and what climate actually measures, are analysed

and discussed in some depth.

The focus of this chapter examines climate and service quality, climate and

innovation and the implications of organisational climate for the performance of the

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hotel industry. The question �Can climate be used a predictor of organisational

performance?� is also raised.

Chapter 3 firstly proposes causal models to test the relevance of organisational

climate as a predictor of customer satisfaction as measured by employee perceptions.

One model, labelled Structural Model A, uses demographic variables as predictors of

organisational climate. Another model, Structural Model B, uses the dimensions of

organisational climate to ascertain the veracity of an aggregated measure of

organisational climate as a predictor of organisational performance. A number of

hypotheses are posed based upon the theoretical models presented.

Chapter 4 then provides a fully detailed account of the research methodology,

the reasons that the various research strategies were selected, and the rationale for the

sample selection process. It also deals with the issue of why the particular survey

instrument was selected as being appropriate for the current study. Considerable detail

will be provided of the reasons for selection and the modifications from the original

instrument initially designed for US Navy personnel to one that is suitable for the hotel

industry.

Detail is provided of the pilot study that was undertaken to assist in the design of

the instruments used to obtain performance and financial data as well as demographic

and employment details. This chapter will also describe the administration and

collection process that was used for the survey of the hotels.

Chapter 5 will report the Hotel Level Data of the 14 hotels concentrating upon

the demographic data, general operational data, general operational statistics and the

ranking each hotel�s performance. The key performance indicator for the hotels is

interpreted in the context of the other operational and market data. The second part of

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the chapter will examine the Staff Level Data for employees and managers. This will

concentrate upon the various demographic data including gender, age, educational level,

organisational tenure, job tenure, gross salary, mode of employment, hours worked,

training frequency, and training needs.

Chapter 6 provides an analysis of the dimensions of organisational climate using

the multivariate technique of Principal Components Analysis (PCA). It examines the

organisational climate diversion across the 14 hotels using a one way analysis of

variance (ANOVA).

Chapter 7 reports upon the relationships between the dimension of

organisational climate, customer satisfaction and the key performance indicator of

REVPAR. The data again fall into the 2 classifications of Hotel Level and Individual

Level. The analysis presented in this chapter is guided by the structural models and uses

the multivariate technique of structural equation modelling.

Chapter 8 will discuss the conclusions that can be drawn and addresses the issue

of the hypotheses and whether they have been supported or rejected by the data

collected. Finally, the results will be put into the context of the hotel industry for South

East Queensland and Australia addressing the questions of what implications the

research has for the industry and future research in this area.

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2.0 Literature Review of Organisational Climate

2.1 An introduction to organisational climate literature

In this study organisational climate is defined as the following.

Organizational climate is a relatively enduring characteristic of an

organization which distinguishes it from other organizations: (a) and

embodies members collective perceptions about their organization with

respect to such dimensions as autonomy, trust, cohesiveness, support,

recognition, innovation, and fairness: (b) is produced by member

interaction; (c) serves as a basis for interpreting the situation; (d) reflects

the prevalent norms, values and attitudes of the organisations culture; and

(e) acts as a source of influence for shaping behavior. (Moran and

Volkwein, 1992, p. 2)

Although this is the definition used to guide this research, many researchers

have presented different definitions of organisational climate, and there has been some

confusion as to the manner in which organisational climate is distinct from the notion of

organisational culture. This chapter will, in part, provide a review of the evolution of

this definition of organisational climate and provide an explanation of its relationship to

the concept of organisational culture.

Not only is it important to clarify the construct of organisational climate, but it is

also important to understand its usefulness for the service industries as a possible tool in

seeking to improve the effectiveness and quality of their service provision. The

importance of climate for the hospitality industry has been highlighted by a number of

theorists including, Francese (1993) who examined the effect of climate in service

responsiveness; Meudell and Gadd (1994) who studied climate and culture in short life

organisations; and Vallen (1993) who was concerned about organisational climate and

service staff burnout. However, the investigation of these themes further becomes very

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difficult when consensus on the definition of climate has proved elusive, and there are

many conceptual issues that need to be addressed.

Organisational climate has much to offer in terms of its ability to explain the

behaviour of people in the workplace. Ashforth (1985, p. 838) put forward the view that

�climate has the potential to facilitate a truly integrative science of organisational

behaviour�. Schneider later discussed climate in terms of:

the atmosphere that employees perceive is created in their organisations by

practices, procedures and rewards � Employees observe what happens to them

(and around them) and then draw conclusions about the organisation's priorities.

They then set their own priorities accordingly. (Schneider, 1994, p. 18)

Schneider, Brief and Guzzo (1996, p. 9) argue that �sustainable organisational

change is most assured when both the climate - what the organisations� members

experience - and the culture - what the organisations� members believe the organisation

values - change�. Other empirical studies have claimed that climate has a considerable

impact upon organisational effectiveness (Campion, Medsker & Higgs, 1993; Drexler,

1977; Franklin, 1975; Fredrickson, Jensen & Beaton, 1972; James & Jones, 1989;

Likert, 1961, 1967; Furnham & Drakeley, 1993; Lawler, Hall & Oldham, 1974; Kanter,

1983; Mudrack, 1989; Schneider, Brief & Guzzo, 1996; Schneider, Gunnarson & Niles

�Jolly, 1994, and others).

The role of climate is crucial in any organisational improvement process that

requires the implementation of a major organisational change, or innovation. Much of

the following review will be definitional. This is necessary for two reasons:

1) in the context of performance and quality management, the term climate

has been used loosely to the extent that the terms culture and climate have been used

interchangeably; and

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2) the literature on climate itself contains multiple definitions, factors,

dimensions, research methods and aetiologies.

The review will examine the major theories and models that have formed the

basis of climate research.

2.2 Early formulations of the climate construct

The concept of climate can be traced back to the work of Lewin, Lippitt and

White (1939) and a work entitled �Patterns of aggressive behaviour in experimentally

created social climates� (Denison, 1996; Schneider, 1990). The Lewin et. al. (1939)

study investigated the relationship between leadership style and climate, a factor that

has remained central to the concept. Joyce and Slocum (1982) trace the concept back to

the studies of Koffka (1935) on �behaviour environment�; Lewin�s (1936) study on �life

space�; and Murray�s (1938) work on organisational climate.

Lewin�s concept of life space, has been explained by Krech and Crutchfield as:

the individual�s total conception of the worlds in which he exists ... It includes

his knowledge, beliefs and memories and his view of the past and future as well

as of the present; and it may include domains of life reached after mortal �death�

- heaven and hell paradise and purgatory. It is not, of course, the same as the

actual physical and social environments described by the outside observer. It is

what exists subjectively for the person. His life space may correspond in some

way with the actual external environment but it also deviates from them in

radical degree, and varies markedly from life spaces of other people. (Krech &

Crutchfield, 1961, p. 210)

In the understanding of the differences between culture and climate, Lewin�s

(1951) approach to climate was conceptualised by the relationship between individuals,

their social environment and how that is set in a framework. Lewin expressed this in

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terms of the simple equation:

B = f (P.E.)

in which B= Behaviour, E = Environment, and P = the person

It is clear from Lewin�s equation that the concept of climate takes a

psychological approach, focussing upon the individual and seeking to understand the

cognitive processes and behaviour. Lewin�s conceptualisation of the theory provides the

underpinnings of many studies and approaches to climate research.

2.3 Three approaches to the climate construct

Following the seminal work of Lewin et. al. (1939), obtaining consensus as to

the definition of climate has been difficult as the climate construct is complex and many

different researchers have used the same terminology to mean different things to the

extent that providing a definitive description of climate has been likened to �nailing jello

to the wall� (Schneider, 1990, p. 1). Others have argued that if the use of the same term

to mean different things continues, climate research will �grind to a stop in an

assemblage of walled in hermits each mumbling to himself words in a private language

that only he can understand� (Boulding, cited in Glick, 1988, p. 133).

James and Jones (1974) conducted a major review of the theory and research on

organisational climate and identified climate in three separate ways that were not

mutually exclusive, (a) multiple measurement - organisational attribute approach, (b)

perceptual measurement � organisational attribute approach, and (c) the perceptual

measurement � individual attribute approach. In the multiple measurement

organisational approach they cite Forehand and Gilmer (1964) as defining

organisational climate as a

set of characteristics that describe an organization and that (a) distinguish the

organization from other organizations (b) are relatively enduring over time, and

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(c) influence the behavior of people in the organization. (Forehand & Gilmer,

1964 p. 3621 cited in James & Jones , 1974)

The perceptual measurement organisational attribute approach seeks to define

climate in terms of individual perceptions of the organisation and it is these perceptions

that influence behaviour. James and Jones (1974) reported that the Campbell, Dunnette,

Lawler & Weick (1970) study which itself had synthesised Kahn, Wolfe, Quinn, Snoek

& Rosenthal (1964), Litwin & Stringer (1968) and Schneider & Bartlett (1968) had

proposed four organisational climate dimensions,

! Individual autonomy � based on the factors of individual responsibility, agent

independence, rules orientation and opportunities for exercising individual initiative.

! The degree of structure imposed upon the position � based on the factors of

structure, managerial structure and the closeness of supervision.

! Reward orientation � based upon the factors of reward, general satisfaction,

promotional-achievement orientation, and being profit minded and sales oriented.

! Consideration, warmth and support � based upon the factors of managerial support,

nurturing of subordinates, and warmth and support.

It must be remembered that such dimensions of climate are not always clearly

distinguishable from other variables that might fit into categories such as organisational

structure, process, system values and norms. The reliance upon perceptual measurement

may mean that organisational climate also includes some situational characteristics as

well as individual perceptual differences and attitudes. Whilst James and Jones (1974)

note considerable criticism of this approach, they reaffirm that there is both rational and

empirical evidence to support that which is being measured by the perceptual questions

are variables related to different levels of explanation.

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In reviewing psychological climate as a set of perceptually based, psychological

attributes (rather than the conceptualised independent or structural variable) Jones and

James (1979) noted that the process reflected the developments that had occurred in the

conceptualisation of climate and the nature of its major influences. They propose that

psychological climate,

(a) refers to the individual�s cognitively based description of the situation; (b)

involves a psychological processing of specific perceptions into more abstract

depictions of the psychologically meaningful influences in the situation; (c)

tends to be closely related to situational characteristics that have relatively direct

and immediate ties to the individual experience; and (d) is multi-dimensional,

with a central core of dimensions that apply across a variety of situations

(though additional dimensions might be needed to better describe particular

situations. (Jones and James, 1979, p. 205)

However, Schneider and Hall (1972) describe climate as a global perception

held by individuals about their own organisational environment. Schneider and Snyder

(1975) further clarified the approach by defining climate as a summary perception

which individuals form of (or about) an organisation. For them it is a global impression

of the organisation. The global nature of organisational climate does not suggest that the

concept is uni-dimensional. Many different types of events, practices and procedures

may contribute to the global or summary perception individuals have of their

organisation.

Within the current study, organisational climate is conceptualised as a construct

created by the activities of the organisation. It is not the activities themselves, which is a

distinction that is not always clear in some of the earlier works. Schneider (1975)

refined the definition of climate to include meaningful apprehensions of order for the

perceiver that are based on the equivalent of psychological cues. Whilst this definition

has some common elements with James & Jones� (1974) and Jones & James� (1979)

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constructs, its focus shows a movement from definitional issues toward a concern for

people and their view of climate and what impact it has for the organisation. It is a way

of apprehending order and a way of judging the appropriateness of behaviour.

2.4 The distinction between culture and climate

Trice and Beyer (1993) define culture in terms of what it is not. It is not climate,

which is measured with researcher-based data, whereas culture is measured by intense

data collection of an emic (contrastive) nature. Reflecting the concerns of both

Schneider (1990) and Glick (1988), Trice and Beyer state:

So many different variables have been subsumed under the climate concept by

various researchers that it overlaps with most constructs in organisational

behaviour as well as with structure, technology, formalisation and effectiveness

� The appeal of the climate construct was that it seemed to give the researchers

a way to combine a broad array of variables already studied into a single

omnibus concept that would simplify the process of characterising and

comparing the psychological environments. (1993, pp. 19-20)

The definition of culture put forward by Trice and Beyer (1993) noted that it has

many unique indicators like myths, symbols, rites and stories. Denison (1996) took what

he considered to be a more controversial view in arguing that it is not clear that culture

and climate are examining distinct organisational phenomena. However, the literature

refers to culture as being deeply rooted in the structure of an organisation and based

upon values, beliefs and assumptions held by the members. Climate, however, tends to

present social environments in relatively static terms measured by a broad set of

dimensions and can be considered as temporary and subject to a range of controls. Table

2.1 gives an outline of differences between the literatures using an epistemological

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approach, the point of view taken, methodology used, temporal orientation, level of

analysis and the discipline area.

Table 2.1 Contrasting: Organisational culture and organisational climate

Contrasting: Organisational Culture and Organisational Climate

Research Perspective Cultural Literature Climate Literature

Epistemological Contextualised andidiographic

Comparative andnomothetic

ViewPoint Emic (native view) Etic (researcher's view)

Methodological Qualitative observation Quantitative data

Temporal Orientation Historical evolution Ahistorical snapshot

Level of Analysis Underlying values andassumptions

Surface levelmanifestations

Discipline Sociology Psychology

Source: Denison (1996, p. 625)

Culture studies were searching for that which is unique in each setting and used

qualitative methods whereas climate studies in contrast, used quantitative methods and

looked for factors that were generalisable across different settings. Many of the

difficulties that seem to have plagued researchers in the climate area can be traced to

this desire to find generalisable factors that are applicable to all environments, to the

extent that a multiplicity of dimensions, climate instruments and underlying theoretical

assumptions have been produced by various researchers. Denison summed up this

paradox thus,

Culture researchers were more concerned with the evolution of social systems

over time ... whereas climate researchers were generally less concerned with

evolution but more concerned with the impact that organisational systems have

on groups and individuals � Culture researchers argued for the importance of

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deep underlying assumptions ... Climate researchers in contrast, typically placed

greater emphasis on organisational members perceptions of observable practices

and procedures that are closer to the surface of organisational life ... and

categorisation of these practices and perceptions into analytic dimensions

defined by the researchers. (Denison, 1996, pp. 621- 622).

2.5 Development of climate instruments

James and Jones (1976) developed the items for their questionnaire after an

extensive review of the literature. From the literature they identified 35 concepts related

to organisational climate. Eleven concepts related to job and role characteristics, eight

related to leadership characteristics, four to work-group characteristics and 12

comprised sub-system and organisational level characteristics. Many of these had been

shown to be internally consistent, psychologically meaningful measures of the work

environment. For each of these concepts, between two and seven items were generated.

This procedure produced a 145 item questionnaire. Responses to each individual item

consisted of a stem with a variable scaled response of either three or five. Thirty-five a

priori composite variables were produced by summing across the relevant item

responses.

This was done to support their choice of climate composites, as they called

them, and the individual question items or scales that comprised each composite. In

1989 James and James reported that the items and scales that comprised the dimensions

of climate that had shown factorial invariance were developed using interviews,

observations and literature reviews. They outlined a number of measures for the job or

role, leader orientation, workgroup environment and variables that relate to the overall

organisational climate.

Schneider argues that neither, interviews or questionnaires are necessarily

preferable to each other in collecting data, but are useful for different purposes. The

qualitative information yielded from interviews is particularly useful for providing

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managers with �the precise practices and procedures that inhibit service delivery [for

instance] rather than merely identifying the fact that there are some inhibitory practices

and procedures� (1990, p. 404). This stands in the way of change agents dealing with the

manifestations of particular climates in particular settings. Low levels of supervisory

support, for instance, don�t reveal precisely what needs to be changed. Schneider

proposes that intermediate positions may be useful;

one alternative would be to have a survey that contained items assessing generic

themes that could be used across settings but for each setting the generic items

could be supplemented by tailor made items. The latter items would require

some in depth exploration of issues in a specific organization to identify the

ways in which generic concepts become manifest there. (Schneider, 1990 p. 404)

This discussion reaffirms that there is still much work to be done in the area of

developing appropriate climate instruments. Current instruments include Patterson,

Payne & West (1996) Business Organisation Climate Index that consists of 28 item

scales however only eight were used because of the length. Kozlowski & Doherty�s

(1989) instrument uses 55 measures consisting of 11 sub-scales that overlaps with Jones

& James (1979). Joyce & Slocum (1982) used the same measure as Pritchard &

Karasick (1973) with 10 dimensions that were factor analysed and reduced to six.

Drexler�s (1977) survey of operations that was based upon Taylor & Bowers (1972), a

composite of several other instruments. Likert�s (1967) profile of organisational

characteristics and Pritchard & Karsick (1973) instrument were both based upon

Campbell et al., (1970) using eleven of their original 22 measures. James and Jones

(1976) developed their psychological climate questionnaire (PCQ) which used 35 a

priori scales derived from the literature, to that point. This questionnaire was

administered to a large US Navy sample as discussed above and the results were then

factor analysed. The components that resulted were then compared to other samples to

derive the generalised dimensions.

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Ryder and Southey (1990) used the James and Jones (1979) questionnaire as the

basis for their instrument which they applied to employees within a large public

building construction and maintenance authority in Australia. Modifications to the

original instrument were threefold, consisting of modifications to the wording, scaling,

and presentation format. Items were reworded to remove culturally specific

terminology, to enable the use of non-sexist language, and to make the items applicable,

non-military employees. Ryder and Southey judged the scaling of the original

instrument to be unsatisfactory. The original instrument employed between three and

five scaled responses that listed either descriptive attributes on a continuous scale, or

were presented in a Likert format. Ryder and Southey employed across all 144 items of

their questionnaire a consistent seven point anchored scale format. Again between two

and seven items were used to produce each of 35 composite climate variables. They

reported that the instrument, so presented, required less time to complete than did the

original Jones and James version.

2.6 Dimensions of organisational climate

The definitions and theoretical positions on climate have varied considerably

between the individual theorists. This has also been the case for the dimensions of

climate and its measurement. Denison (1996) argues that developing a universal set of

dimensions was often the central issue of the climate researchers so that comparative

studies could be made possible in different organisational settings. He compared this

approach to that of the culture research that used a post-modern perspective which

examined the qualitative aspects of individual social contexts where each culture that

was examined was seen as unique and was not expected to have generalisable qualities

which had become central to the climate research.

It is possible that the dependence on the use of climate surveys as the research

method of choice led those working in the climate area to seek generalisable qualities

across settings. Jones and James (1979) argued that one of the assumptions of the

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climate literature is that a relatively limited number of dimensions could characterise a

wide cross-section of social settings.

Jones and James (1979) initially administered their 145 item instrument to a

large sample of 4315 US Navy personnel. An exploratory Principal Components

Analysis (PCA) produced a six factor (eigenvalues greater than unity) solution. Jones

and James labelled their factors as follows:

�Conflict and ambiguity�, which �reflected perceived conflict in organisational

goals and objectives, combined with ambiguity of organisational structure and

roles, a lack of interdepartmental cooperation, and poor communication from

management. Also included were poor planning, inefficient job design, a lack of

awareness of employee needs and problems, and a lack of fairness and

objectivity in the reward process.�

�Job challenge, importance and variety�, which �reflected a job perceived as

challenging, important to the Navy, whic involved a variety of duties, including

dealing with other people. The job was seen as providing autonomy and

feedback, and demanding high standards of quality and performance.�

�Leader facilitation and support�, which �reflected perceived leader behaviors

such as the extent to which the leader was seen as helping to accomplish work

goals by means of scheduling activities, planning, etc., as well as the extent to

which he was perceived as facilitating interpersonal relationships and providing

personal support.�

�Workgroup cooperation, friendliness, and warmth�, which �generally described

relationships among group members and their pride in the workgroup.�

�Professional and organisational esprit�, which �reflected perceived external

image and desirable growth potential offered by the job and by the Navy. Also

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included were perceptions of an open atmosphere to express one�s feelings and

thoughts, confidence in the leader, and consistently applied organisational

policies, combined with nonconflicting roles expectations and reduced job

pressure.�

�Job standards�, which �reflected the degree to which the job was seen as having

rigid standards of quality and accuracy, combined with inadequate time,

manpower, training, and resources to complete the task.�

Jones and James applied their instrument to two other samples of health

managers and firemen. PCA analysis in both of these cases extracted 6 factors with

eigenvalues greater than unity. Analysis of the items on each factor, however, revealed

only 5 factors to be common across the three samples (Conflict and ambiguity, Job

challenge, importance and variety, Leader facilitation and support, Workgroup

cooperation, friendliness, and warmth, and Professional and organisational esprit).

Jones and James reviewed the comparability of the results found in their US

Navy sample and the findings of other similar studies. A number of the dimensions that

had been used in other studies could be related to their own findings as shown in Table

2.2.

The identification of dimensions was also the subject of a study by Campbell,

Dunnette, Lawler, and Weick (1970) when they reviewed the work of Litwin and

Stringer (1966), Schneider and Bartlett (1968), Taguiri (1966), and Kahn, Wolfe,

Quinn, Snoek, and Rosenthal (1964). Campbell et al. found four factors common to

each of these studies: (a) individual autonomy, (b) degree of structure imposed on the

position, (c) reward orientation, and (d) consideration, warmth and support. Whilst there

is no definitive agreement on climate dimensions there does appear to be some

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Table 2.2 Comparison of Climate Dimensions across Studies

JONES AND JAMES (1979)WORKGROUP CO-OPERATIONFRIENDLINESS AND WARMTH

Meyer (1968)Thornton (1969)Friedlander & Margulis (1969)Pritchard & Karasick (1973)Lawler, Hall & Oldham. (1974)

Team SpiritDistant vs Close Working RelationshipIntimacySocial relationsFriendly-Unfriendly

JONES AND JAMES (1979) CONFLICT AND AMBIGUITY

Litwin & Stringer (1968)Schneider & Barlett (1968)Pritchard & Karasick (1973)Meyer (1968)Payne, Pheysey & Pugh (1971)

Waters, Roach & Batlis (1974)Thornton (1969)Campbell, Dunnette, Lawler & Weick(1970)Litwin & Stringer (1968)Pritchard & Karasick (1973)Schneider & Barlett (1968)

ConflictConflictConflictOrganisational ClarityNormative ControlEffective Organisational StructureEfficiency and Clarity of Purpose

StructureStructureStructureStructure

JONES AND JAMES (1979) LEADERSHIP, FACILITATION and SUPPORT

Schneider and Bartlett (1968)Campbell et al., (1970)

Waters, Roach & Batlis (1974)Friedlander & Margulis (1969)

Managerial SupportConsideration, Warmth and SupportClose, Impersonal supervision, and Employeecentered OrientationAloofness, Production Emphasis, Trust andConsideration (4 separate factors)

ADAPTED FROM JONES AND JAMES (1979)

commonality of organisational dimensions that can be measured by a number of

theorists and the debate continues over the narrowness of range used to describe

different work environments (Pritchard and Karasick, 1973; James and James, 1989;

James, James and Ashe, 1990; Schneider, 1975).

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Ryder and Southey (1990) applied an exploratory PCA to the data they gathered

from their Australian sample using their modified version of the Jones and James (1979)

instrument. This procedure resulted in a 10 factor solution (using the criterion of the

corresponding eigenvalue being greater than unity). The authors report that of those 10

factors, only 6 were interpretable. The dimensions they so identified were:

�Leader Facilitation and Support�, with the leader providing support and

facilitating the accomplishment of work goal�s, facilitating interpersonal relationships,

being aware of employee needs and providing job feedback. It also encompasses

openness of expression and allows for upward interaction.

�Job Variety, Challenge and Esprit�, deals with not only job variety, challenge

and autonomy but professional, work group and organisational esprit de corps. It also

encompasses opportunities for growth and advancement, role ambiguity and efficiency

of job design.

�Conflict and Pressure�, deals with conflict in a role and between organisational

goals and objectives, job pressure, planning and co-ordination, and opportunities to deal

with others.

�Organisational Planning Openness�, describes planning and effectiveness, and

ambiguity of organisational structure. It also deals with job standards and importance,

the consistent application of organisational policies, and confidence and trust down.

�Workgroup Reputation, Co-operation, Friendliness and Warmth�, encompasses

precisely the concepts named in its title.

�Perceived Equity�, looks at interdepartmental co-operation, organisational

communication down, and the fairness and objectiveness of the reward process.

Ryder and Southey noted that the major dimensions of psychological climate are

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stable and would provide a framework for future research. In their study they modified

the Jones and James (1979) questionnaire and reported improved measures of

reliabilities.

2.7 A critique of climate theory

Schneider (1975) criticised the whole idea of an omnibus theory of climate and

in particular the indiscriminate use of the term organisational climate. He proposed that

the term organisational climate be used only to refer to an area of research rather than to

a construct with a limited number of dimensions. From a review of early climate studies

Schneider concluded that some dependent variable had implicitly driven the research on

the climate construct. Many of the studies have looked at climate as a particular facet of

organisational life, rather than a general omnibus measure. These studies included

theorists such as, Lewin et al., (1939) who examined leadership style and social climate.

Fleishman (1953) whose investigation looked at the climate for leadership whereas

Argyris (1958) was concerned about the right type of climate, and McGregor (1960)

looked at climate from the leadership perspective. Litwin and Stringer (1968) were

studying a climate for motivation, Schneider and Bartlett (1968) were exploring the

climate for new employees and Taylor and Bowers (1973) dealt with creativity.

Schneider (1973) was concerned about psychological success whilst Renwick (1975)

looked at conflict resolution. Additionally, several subsequent studies could also have

fallen into this categorisation: Delbecq & Mills (1985) addressed innovation and

Schneider (1990) studied service.

Schneider (1975) argues that these theorists could have investigated the same set

of organisations because each of those climates could have existed side by side. It was a

theme repeated in later work;

Organisations may have many climates, including a climate for creativity, for

leadership, for safety, for achievement, and or for service. Any one research

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effort probably can not focus on all of these but the effort should be clear about

its focus. (Schneider, Parkington and Buxton, 1980, p. 255)

Schneider believed that the salience of a particular dimension could only be

found in the context of a particular criterion of interest (1975). Schneider and Reichers

(1983) further reinforced this view by strongly advocating that examining organisational

climate without attaching a referent is meaningless.

Jones and James (1979) responded to Schneider�s criticism, by arguing that the

call for criterion based climate studies did not rule out the possibility that a relatively

small set of dimensions may still describe a wide range of environments. They

postulated that a particular dimension may be related to the same criteria under

consideration but be negatively related to another criterion and not related at all to

others. James and James (1989) argued for the concept of a generalisable psychological

climate (PCg), first developed by Lazarus (1982; 1984), as a general higher order factor

integrating the meanings behind the psychological climate of an organisation.

Stated simply people respond to work environments in terms of how they

perceive these environments, and a key substantive concern in perception is the

degree to which individuals perceive themselves as being personally benefited as

opposed to being personally harmed (hindered) by their environment. (James

and James, 1989, p. 748)

They found strong support for this notion in their research and demonstrated the

theorised relationship between the dimensions of climate as a generic concept and the

underlying factors or PCg that make up the individual dimensions.

2.8 Measurement issues of the multilevel climate construct

Psychologists explain the behaviour of people through the use of both

nomothetic (group) and idiographic (individual) means (Mullins, 1996). A fundamental

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question inherent with organisational climate research is �What is the appropriate level

of analysis; the organisation, the department or subunit, the workgroup or the

individual?�. Many researchers have conceptualised climate as an individual and

psychological variable, however, the difficulty has been justifying the extrapolation of

results from one level of analysis, i.e. (the individual), to the broader context of the

workgroup, the department or to the total organisation (Guion, 1973). The cross level

interference problems together with the unit of analysis issue have been addressed by a

number of researchers (Glick, 1980, 1985; Glick and Roberts, 1984; Mossholder and

Bedeian, 1983). When Cameron (1983) discussed organisational effectiveness he also

confirmed that a major problem for these types of studies is the primary level of

analysis.

Guzzo (1982), Cummings (1983), Noord (1983) and Keely (1980) all use single

indicators that are extrapolated to assess the whole organisation. The extrapolation of

results from the individual level to the group level allows climate researchers to analyse

and draw conclusions about the running of the total organisation and for groups of

people within the organisation in terms of whatever effectiveness parameter is being

investigated. Generally researchers have sought to do this by calculating the average

(usually a mean) of results for a particular climate survey and then sought to discover

the extent to which the results mapped into the structure and effectiveness of the

organisation. There has been considerable discussion in the literature concerning the

extent to which this practice is justified and in what context (Patterson, Payne & West,

1996; Glick, 1988, James, Joyce & Slocum, 1988; Denison, 1996).

In Argyris (1958), Forehand and Gilmer (1964) and Litwin and Stringer (1968)

the unit of theory was focussed upon the organisation as the natural unit for climate

research. Another group of these earlier theorists concentrated upon group or sub-unit,

notably Hellriegal and Slocum (1974), Powell and Butterfield (1978) and Howe (1977).

More recently, James and Jones (1974) used the term psychological climate to embrace

both individual and, when aggregated, organisational level units of analysis, although

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later they (e.g., James et al., 1988) tended to use the term organisational climate to refer

to these aggregated individual psychological climate scores.

Glick stated that organisational climate �is an organizational attribute that may

be estimated with a central tendency, but the central tendency is not the organization

itself� (1988, p. 135). Whilst there are inherent difficulties with the aggregating of data

sets and disagreements as to the dimensionality of organisational climate, i.e.,

dimensions of psychological climate may not be appropriate to organisational climate,

however, it can still be estimated by aggregating individual psychological climate

scores. Glick proposed that organisational climate as defined by James et. al. (1988) be

renamed �aggregate psychological climate�. His overall conception of the construct

regards climate as a broad class of organisational variables that are used to describe the

context for individual members within an organisation�s formal and informal policy and

procedures. The dimensions are as yet still not fully resolved and whilst climate is an

emergent organisational level process it cannot entirely be decomposed to individual

level cognition. Glick�s (1988) summation draws upon and supports the work of other

theorists such as Schneider & Reichers (1983), Powell & Butterfield (1978), Campbell,

Dunette, Lawler & Weick (1970) and Glick (1985).

The multiple level of units of theory is important because they may differ in

their empirical approach. Whereas the term organisational climate connotes an

organisational unit level of analysis, it does not refer to the individual, department or

workgroup. The debate on the unit of theory as being the organisation is strengthened

by the common practice of many researchers of using aggregation of psychological

climate (Gavin and Howe, 1975; James, 1982; Jones and James, 1979; Schneider,

1975). In discussing the units of theory, Glick (1985) makes the point that psychological

climate is very much linked to the organisational climate and that care needs to be taken

and that separate cross-level analyses should be used.

James and Jones (1976) discussed the difficulties inherent in using individuals�

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perceptions of organisational situations as the basis for higher level analysis in some

depth. The concern that emerged from their work was that perceptually based data

carried the risk of reflecting individual characteristics rather than differences in the

situations being studied. When, for instance, an organisation hired certain kinds of

persons into a particular group, the results of the study could be skewed. The process of

aggregation, they argued, rested on a number of implicit assumptions:

The argument for aggregating perceptually based climate scores (i.e.,

psychological climate scores) appears to rest heavily on three basic assumptions:

first, that psychological climate scores describe perceived situations; second, that

individuals exposed to the same set of situational conditions will describe these

conditions in similar ways; and third, that aggregation will emphasize perceptual

similarities and minimize individual differences. (Jones and James, 1979, p. 206)

Mossholder and Bedeian (1982) defended the use of aggregated psychological

climate in assessing how individuals perceive an organisation. They postulated that

while it appears to require an organisational unit of analysis, the actual units of analyses

are both organisational because psychological climate represents individuals, in general,

and the results may also be aggregated.

Schneider and Reichers (1983) discussed how climates form and why

aggregation is a legitimate technique. They considered three approaches to the

formation of climate: the structural perspective; selection, attraction and attribution; and

social interactionism. The structural perspective sees as arising from the structural

characteristics of the organisation. The selection, attraction and attrition approach at

which individuals (based on the work of Bowers, 1973) create homogeneous

organisational membership and where there are similar climate perceptions among

individuals. Thirdly, social interactionism approach is where individuals check,

suspend, regroup and transform their own perceptions in the light of their interactions.

This approach seeks to explain differences in climate across workgroups in the same

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organisation that are not explained by the other approaches.

In the debate between Glick (1985) and James, Joyce and Slocum (1988) there is

fundamental disagreement about the conceptualisation and measuring of organisational

climate using psychological climate. James et al., argue that psychological climate, with

its parsimonious set of dimensions and the scores obtained, does represent shared

meaning and perceptual agreement which can be aggregated to give an overall indicator

of organisational climate. They further point out that the basic unit of theory for

organisational climate (aggregated psychological climate) must be the individual

because �it is individuals, and not organizations, that cognize� (1988, p. 130). The

aggregation of climate is appropriate because of the shared assignment of meaning that

allows a higher order of analysis for groups, sub-systems and organisations. It provides

a mechanism for relating the construct of psychological climate at individual level of

analysis to another form of the construct at the group, subsystem or organisational level

yet the basic unit is psychological analysis. This is a crucial point for organisational

research as it allows researchers the possibility of using aggregated psychological

climate to describe organisations in psychological terms (James, 1982; Joyce & Slocum,

1979, 1984).

In the sampling process, within any organisation in order to use aggregated

psychological climate to predict organisational climate there is a need to ensure that all

members of the organisation, or a random stratified sub-sample of individuals covering

all positions, are represented. Without such sampling procedures in place, James et al.,

(1984) conclude that the use of aggregation is unjustified.

Patterson, Payne and West (1996) discuss the problems that Schneider and

Reichers (1983) faced where they could not account for differences that were found to

exist across workgroups within the same organisation. This follows similar results

found by James and Jones (1979) in their US Navy study and the variation Pritchard and

Karasick (1973) found across regions. Schneider and Reichers (1983) addressed this

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problem using social interactionism, drawing on the work of Mead and Bulmer (1969)

in the area of symbolic interactionism, and suggested that climate perceptions were a

function of social interactions. As discussed above these social interactions can be

examined by looking at how people interpret meaning in the social context.

meaning (which includes perceptions, descriptions and evaluations) does not

reside in any particular thing in itself, nor does it reside in the individual

perceiver. Rather the meanings of things arise from the interactions among

people. The actions of others act to define an event or procedure for the focal

person. This is not meant to suggest that people simply apply the meanings

given to them by others. Rather, individuals check, suspend, regroup and

transform their own perceptions of events in light of the interactions they have

with others in the setting. (Schneider and Reichers, 1983, p. 30)

Ashforth (1985) discusses the interactionist perspective and highlights the

susceptibility of newcomers to influence outcomes in their desire to fit into a new

setting. Social comparison theory explains that individuals compare their beliefs to

others whom they perceive to be similar to them (for example, people in the same job).

Normative social influence and the stake that group members have in maintaining the

frame of reference of the prescribed behaviours, beliefs, and attitudes affect the

development of organisational cultures. Patterson, Payne and West (1996) argue that

these approaches should be seen as complementary rather than competing and that each

may be useful for examining the various stages of development of a climate. Patterson

et. al. (1996) rely upon the depiction by Ashforth of the aetiology (cause) for climates in

the explication of the results, which were inconclusive from the social interactionist

model perspective.

Another conceptual difficulty identified by Cameron (1983), is the reverse to

that described above, where an organisation�s effectiveness is measured by single

indicators of performance such as return on investment, overall performance rating and

turnover. When organisational climate is represented by the aggregation of scores from

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individuals within the organisation, a score would (obviously) exist for each individual

and may be included in multivariate statistical analyses relating climate to other

characteristics such as employee demographic variables. Within such analyses, should

the researcher wish to also examine the relationship between these variables and a

single indicator of performance, then the researcher is necessarily limited to either

dealing with aggregate scores across individuals, or must assign, for each individual, a

score representing that single performance indicator. Both approaches have advantages

and disadvantages.

2.9 Organisational climate as a variable in theory and research

According to Schneider (1975), the basis of the climate function can be traced to

two different schools of psychology: Gestalt and Functionalism. The Gestalt school

argues that the perceiver has no choice but is actually driven to find order in the world.

Nature has order, and the perceiver has to find that order through the process of closure.

The closure principle suggests that given some limited amount of information to

which people ascribe order, the totality they may create represents more than the

simple sum of the limited information perceived ... Given a set of cues about the

world with some perceived relationship, i.e. there is sufficient information for

order to be perceived, a whole or total concept is formed. (Schneider, 1975, p.

448).

Mullins (1996) discusses Gestalt theory in terms of its instant and spontaneous

assumptions that we cannot stop ourselves making about our environment. Gestalt

theory also stresses the drive to behave on the basis of this apprehended order and in a

manner that suits the environment in which the perceivers finds themselves (Schneider,

1975; Kozlowski & Doherty, 1989). The earliest reported incident of the phenomenon

was detailed in the work of Lewin et. al. (1939). In their experimentally created social

climates they found that the behaviour of the boys in the study varied according to the

social climate created by their leaders; authoritarian, democratic or laissez faire.

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Functionalism provides a framework in which individuals can seek order in their

environment. This allows them to function adaptively: they have a fundamental need to

seek information about the status of their behaviour in terms of the environment within

which they operate, �they seek information so that they can adapt to, or be in

homeostatic balance, with their environment� (Schneider, 1975, p. 450). Theorists such

as Frederickson, Jenson and Beaton (1972), Fleishman (1953), Litwin and Stringer

(1968) and Argyris (1957) support this view of Functionalism. And Schneider (1990)

refined his view of climate to include �a sense of imperative� for individuals.

Ashforth (1985) argues that a strong culture informs the climate of the

organisation in two ways: directly by telling the individual what is important in the

environment, and indirectly through its influence on the environment. Whereas climate

influences factors in the workgroup, the process of newcomer socialisation, symbolic

management and to a lesser extent the physical setting. The point for Ashforth is that

culture underpins these factors so that the assumptions and values of the organisation

(the culture) are behind the perceptions and inferences of the organisation (the climate)

and the behaviour of the members of the organisation. Ashforth�s conceptualisation of

the formation of climates and how it is based upon and is affected by an organisation�s

culture is displayed in Figure 2.1

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CLIMATE FORMATION

ADAPTED FROM ASHFORTH (1985)

Figure 2.1 Climate Formation (from Ashforth, 1985)

When Moran and Volkwein (1992) examined the relationship between culture

and climate they saw an organisation�s climate as a specific portion of the overall

construct. They viewed climate as embedded into the overall construct of culture, which

STRONG CULTUREAssumptions and values

underpinPerceptions and inferences

Informs climate in two ways

Directly by telling theindividual what isimportant

Indirectly by its impact onthe environment

INFLUENCED BY

WORKGROUPFestinger (1954): Social comparison theory

Hamner and Organ (1978): norms and expectations,frame of reference, prescribed behaviours, sanctions

AFFECTNewcomer socialisation: desire forintegration, desire to reduce anxiety

SYMBOLIC MANAGEMENT

PHYSICAL SETTING

CLIMATE ENACTEDas a joint property of both the individual

and the organisation both macro and micro

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was seen as larger and more abstract. As far as individual behaviour in the formation of

climate is concerned, both Moran and Volkwein (1992) and Ashforth (1985) saw the

contextualising of the psychological principles contained in the Gestalt and

Functionalist approaches to behaviour. Figure 2.2 depicts how Moran and Volkwein

conceptualised the relationship between climate and culture. They viewed culture as

being the invisible construct which guides and inform individual behaviour, in effect

setting an agenda from which climate can develop and where in their view it can have

some enduring quality.

BRIDGING CULTURE AND CLIMATE

ADAPTED FROM MORAN AND VOLKWEIN (1992)

Figure 2.2 Moran and Volkwein (1992) depiction of culture and climate

CULTURE: INVISIBLE

(Exists quite apart fromindividual variation)

Interacting Individuals(informed and constrained

by common culture)

Contingencies in the internaland external environment

CLIMATE: VISIBLE

Collective and Individual properties

OPERATES AT THE LEVEL OF ATTITUDES ANDVALUES. FORMS MORE QUICKLY, CHANGES MORE

RAPIDLY: (changes in key staff, budgetary cuts)

RELATIVELY ENDURING

CULTURE STOPS CLIMATE BEING ENTIRELYTRANSITORY OPERATES AT THE PRECONSCOUS,

SUBCONSCIOUS LEVEL

�Culture�.is the source of purposeful action and continuity fromwhich the more routine adaptive behaviour exhibited in the

organisation's climate derive their impetus.�

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An alternative perspective on the nature of the climate construct in theory and

research is presented by Schneider (1975) describing climate to have been

conceptualised across studies in one of three ways - as a dependent, independent, and

intervening variable, which he considered were merely different vantage points. Those

theorists that took climate as a dependent variable, George & Bishop (1971), Payne,

Pheysey & Pugh (1971), Dietertly & Schneider (1974) and Lawler, Hall & Oldham

(1974) used the construct to analyse varying situations and procedures in a macro sense.

Secondly, the group that used climate as an independent variable, Lewin, Lippitt &

White (1939), Argyris (1957), Andrews (1967), Frederickson et. al. (1972) and

Pritchard & Karasick (1973) were concerned with interpreting of practices which

produce varying organisational climates. Thirdly, the final group used the construct as

an intervening variable, where climate was a pre-determined way of specifying types of

procedures that will lead members to view climate in a particular way (McGregor, 1960;

Likert, 1967; Hall & Schneider, 1973).

The view emerging from some theorists is that climate should be viewed as an

intervening variable that is psychological by nature and represents an individual�s social

interaction which is underpinned by the culture of the organisation (Ashforth, 1985;

Moran & Volkwein, 1992). Moran and Volkwein (1992) have examined the constructs

of climate and culture, tracing the theoretical antecedents, arguments and positions in an

attempt to demonstrate differences and also provide a link between the two constructs.

They have drawn upon work by Forehand and Gilmer (1964) and Pritchard and

Karasick (1973) in forming their definition of organisational climate presented in

section 2.1.

2.10 Organisational climate and models of organisational functioning

Although the debate over what organisational climate does and does not describe

has been ongoing from the time Lewin, Lippitt and White (1939) first utilised the

construct, an adequate and comprehensive theory of climate has been elusive.

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James and Jones have provided a conceptualisation of �Organisational

Functioning� (Figure 2.3) that displays the role of organisational climate in relation to

the resultant job behaviours and ultimately the end result criteria in an integrated model

(1976, p. 96). Organisational climate is depicted as a situational variable along with

more objective factors such as organisational structure, systems and norms and

processes. These themselves are further broken down into a number of sub-systems. It is

the action of these situational variables that in turn produce the perceived psychological

climate and the perceived physical environment. There are a number of other causal

influences but the prime relationship of the perceived climate and physical environment

is with a range of individual characteristics such as attitudes, motivation, job

satisfaction, expectancy instrumentality and reward reference. Other individual

characteristics become moderating variables but the relationship with job behaviours

and performance and end result outcomes for the organisation is clearly shown.

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Figure 2.3 Jones and James 1976 Model of Organisational Functioning

Source: Jones and James 1976 INDIVIDUALBEHAVIOURS AND

CRITERIA

EXTERNAL ENVIRONMENT

ORGANISATION

SUBSYSTEM AND GROUP

EXTERNALPHYSICAL

ENVIRONMENT

SOCIOCULTURALENVIRONMENT

ORGANISATIONALPHYSICAL ENVIRONMENT

ORGANISATIONALCONTEXT

ORGANISATIONALSTRUCTURE

ORGANISATIONALPROCESS

SUBSYSTEM ANDGROUP PHYSICAL

ENVIRONMENT

SUBSYSTEMAND GROUP CONTEXT

SUBSYSTEM ANDGROUP STRUCTURE

SUBSYSTEM ANDGROUP PROCESS

ORGANISATIONAL CLIMATE

SITUATION

PSYCHOLOGICALCLIMATE (PC)

PERCEIVED PHYSICAL

ENVIRONMENT(HABITABILITY)

ORGANISATIONALLYRELATED ATTITUDESAND MOTIVATION

JOB SATISFACTION

EXPECTANCYINSTRUMENTALITY

REWARD REFERENCE

INDIVIDUAL RESOURCESINTELLIGENCE ABILITIESPERSONALITYRACESOCIOECONOMICSTATUS

JOBBEHAVIOURS

ANDPERFORMANCE

ENDRESULT

CRITERIA

INTERVENING VARIABLESINDIVIDUAL

CHARACTERISTICS

ORGANISATIONALSYSTEMS AND NORMS

SUBSYSTEM ANDGROUP SYSTEMS AND

NORMS

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Kopelman, Brief, and Guzzo (1990) also provide a linear model of

organisational functioning (Figure 2.4) that demonstrates the role of the culture and

climate as they are ultimately linked to organisational productivity. Kopelman et. al.�s

model starts with societal and organisational culture as setting the parameters of the

human resource practices. It is the HRM practices that in turn engender the

organisational climate, which produce the cognitive and affective states of individuals

(work motivation and job satisfaction). The aggregation of individual perceptions

determines the salient features of organisational behaviour and in sum make up the

organisational productivity. Although the criterion of interest in this case is

productivity, the model has utility for explanatory purposes with climate being depicted

as an intervening variable. This model uses the role of HRM practices of the

organisation as a situational variable that will ultimately affect the productivity of the

organisation. Kopelman et. al.�s (1990) description of organisational climate reflects

both individual and organisational characteristics. Similarly, salient organisational

behaviours such as attachment, performance and citizenship are seen as intervening

between the climate of the organisation and the ultimate outcomes. Attachment will

affect such factors as absenteeism and turnover, leading to an increase in training

separation and replacement costs. In a service industry the quality of the service

provision is also likely be affected.

Performance relates to the manner in which the formal requirements of the job

are attended to, and it is here that the citizenship or pre-social organisational behaviours

have an important role. These refer to �constructive or co-operative gestures that are not

mandatory� without which attachment performance and ultimately productivity will

slowly deteriorate (Brief and Motowidlo, cited in Kopelman et. al., 1990, p. 301).

Schneider, Gunnarson and Niles-Jolly (1994) claim that organisational citizenship

behaviour is essential in creating a climate that allows for organisational success.

Perceptions of fairness and trust, norms of helpfulness and co-operation and fair reward

systems based on a broad range of contributions are seen as essential in creating a good

climate.

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A MODEL OF CLIMATE, CULTURE AND PRODUCTIVITY

ADAPTED FROM KOPELMAN, BRIEF AND GUZZO 1990

Figure 2.4 A Model of Climate, Culture and Productivity (Adapted From Kopelman, Brief And Guzzo 1990)

Human ResourceManagement Practices

HiringPlacingRewardingMonitoringDevelopingPromoting

SOCIETAL CULTURE

OrganisationalCulture

Organisational Climate

Goal EmphasisMeans EmphasisReward OrientationTask SupportSocioemotional Support

Cognitive and AffectiveStates

WorkMotivationJobSatisfaction

Salient OrganisationalBehaviours

AttachmentPerformanceCitizenship

OrganisationalProductivityPhysicalOutputTotal labour costs

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Modelling the way climate affects the outcomes of the organisation through the

behaviour of the employees has its antecedents in the work of Likert (1961) who

discussed climate in terms of an intervening variable. The role of climate in the

provision of high quality service draws on the models provided by Likert (1961), James

and Jones (1976), Kopelman et al., (1990) and others. Likert�s model used causal

variables which included only those that were under direct management control;

intervening variables that reflected the organisational climate such as performance

goals, loyalties, attitudes, perceptions and motivation; and end result variables that are

dependent variables that include productivity measures, costs, service and quality.

2.11 Climate, service quality and organisational performance

From the earliest studies the climate of an organisation has been shown to exert

a powerful influence on the attitudes and behaviour of the people in the organisation.

Many aspects and factors have been shown to have a relationship with organisational

climate such as, work methods (Frederiksen, 1968, cited in James and Jones, 1974);

satisfaction (Pritchard and Karasick, 1973); alienation (Witt, 1993); trust (Strutton,

Toma and Pelton, 1993); productivity (Frederiksen, 1968, cited in James and Jones,

1974); turnover intentions (Parkington and Schneider, 1979); agency success (Schneider

cited in Pritchard and Karasick, 1973); organisational income (Scheflen cited in

Pritchard and Karasick, 1973); service quality (Schneider and Bowen, 1985); innovation

(Scott and Bruce, 1994) and many other factors. It is therefore reasonable to conclude

that organisational climate is of major importance in the understanding of how

organisations work and the success they achieve.

When discussing the role of climate and its links to the provision of high quality

service it is first necessary to understand the operational environment of the hospitality

industry. The provision of high quality service has become essential to survival, and

many hospitality organisations are attempting to implement various quality management

schemes (Harrington & Akehurst, 1996). Higgins and Vincze (1993) argue that firms

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49

wishing to be successful in the 1990�s must have a quality management programme in

place and that quality has become a strategic imperative.

According to Partlow, the search for a sustainable competitive advantage in the

hotel industry �has become focussed to a large degree on product and service quality�

(1994, p. 16). The performance and credibility of hospitality organisations like the Ritz

Carlton, Hyatt, Sheraton, Pan Pacific Hotels, Southern Pacific Hotel Corporation and

others which have already successfully implemented a quality management systems is a

compelling justification for all other hospitality organisations also adopting similar

strategies. Hoque (2000) suggests that it is the linking of good HRM practices to the

business strategy that enhances performance.

Yet there is no guarantee that the introduction of quality programmes will lead

to success. Harari (1993) points to a success rate of only 20-30 %. Similarly, Eskildon

(1994) reported that 63 % of those surveyed with TQM programmes had failed to

reduce internal defects by 10 % or more. Only one-fifth of British firms believed that

their quality programmes had made a significant impact, and only one-third of US

manufacturing and service firms believed their TQM efforts had made them more

competitive. Morton (1994) put it even more succinctly when discussing why British

firms could not match their Japanese counterparts, quoting a Japanese executive when

asked, �why are you so open about your processes, the techniques and commercial

decisions?� The response was both realistic and depressing, �because we know you

won�t do it anyway. You will not change� (1994, p. XV).

Napier (1997) found that many North American organisations which start a

formal quality initiative lose their way or give up within two years, in the process

wasting a lot of time, effort and money. Most of the TQM programmes also fail to

address the issues of psychological/behavioural aspects that are essential prerequisites

for such change. Napier argues that they are focussed on the pure mechanics of

implementation so that without the �...supporting behaviours quality systems either get

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50

bastardised to the stage that they are rendered useless or are simply doomed to failure�

(1997 p. 7). Eskildon (1994) argues that companies such as Harley-Davidson, Hewlett-

Packard, Xerox and Compaq have all achieved success by managing their TQM

programs by creating clear goals, whilst many other companies which implement TQM

concentrate on creating a culture, without creating clear goals for improving customer-

value outcomes.

Goals have an important function in understanding the link between the daily

activities of the organisation and the deeper psychological issues. It is here that climate

has an important explanatory role to play. Goals and how an organisation goes about its

business are key components by which the members of an organisation infer the climate

of an organisation (Schneider, Brief and Guzzo, 1996). The influence of an

organisations climate on employee behaviour extends beyond the implementation of

proposed change, and has been demonstrated by numerous studies on all aspects of

employee behaviour (Drory, 1993; Witt, 1993; Strutton, Toma & Pelton, 1993). An

organisation needs to be aware of three separate kinds of climate in order to ensure the

success of service focussed quality improvement efforts: (1) a climate for service, (2) a

climate for innovation, and (3) a climate for human resources or employee welfare

(Schneider, Gunnarson and Niles-Jolly, 1994).

The climate of the workplace is particularly relevant to all service industries

where, like hospitality, the vast majority of its output is characterised by intangibility,

heterogeneity, and simultaneous production and consumption. This is perhaps best

described by Carlzon�s �moment of truth� (1987) in the service encounter recognising

that it is impossible to directly control the outcome of the service process. The

management of service industries is different and according to Schneider, Gunnarson

and Niles-Jolly (1994, p. 23) �...in the absence of direct control of the service encounter,

it is the climate and culture that determines high quality service�. In many ways climate

becomes a substitute for leadership, and understanding how it works is vital to those in

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51

the hospitality industry (Kerr and Jermier, 1978).

2.12 Utilisation of the climate construct within a service quality perspective

The integral role of people in the development of a TQM plan (Price and Chen,

1993) is crucial to its implementation and success. Crom and France (1996) detail the

consequences of �a climate of fear� in relation to employee risk taking and how a variety

of techniques including teamwork and the redesign of job processes can address this

situation. Ryan (1995) discusses the need for the development of a climate for

innovation in the context of a continuous improvement effort. Silcox, Cacioppe and

Soutar (1996) concentrated on the way that various sub-cultures may be managed

during any intervention. They recognise that cultural change for a large group has

considerable difficulties, whereas the efficacy of small group cultural change is an

alternative and more productive approach stating,

The commitment and self esteem of workers, the culture and climate of the

organisation, together with the quality of the organisational communication and

leadership have a direct effect on the quality of products and services and the

overall productivity of the organisation and need to be examined and understood

by managers considering a quality intervention. (Silcox, Cacioppe and Soutar,

1996, p. 26)

Tice (1993) supports this view claiming that �all too often the human, or

behavioural side of TQM is either ignored altogether or given cursory attention� (1993,

p. 22). Libotte discusses the difficulty of �embedding the will for continuous

improvement� (1995, p. 48) and promotes the prescription of measurable results as well

as new roles, and responsibilities in place of the use of new written procedures only.

Easton (1992) comments upon the continued emphasis on financial and cost factors in

the decision making of American industry to the neglect of other indicators concerning

individuals. Heymann (1992) extends the discussion of the need to establish a quality

culture to include the day-to-day behaviour that is evident in the organisation, and

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52

Saraph and Sebastian (1993) discuss the need for quality goal setting. Partlow (1993)

gives an extensive account of the practices and procedures that are seen to be central to

the quality improvement process at the Ritz-Carlton group. These processes cover

climate-related issues and give a clear indication of the importance of the role

organisational climate plays in the quality management initiative.

Vallen (1993) provided clear evidence of the link between organisational climate

and the burnout of service staff. The study used Likert�s �Profile of Organisational

Characteristics (POC)�, an 18 item questionnaire divided into six categories, leadership;

communication; interaction and influence; decision making, goal setting and control.

This is based upon Likert�s (1961) four Systems of Management, ranging from System

1 (exploitative-authoritative), System 2 (benevolent � authoritative), System 3

(consultative) through to System 4 (participative). Apart from the strong correlation

between burnout and a poor organisational climate, Vallen also noted that the

hospitality firms surveyed in terms of their climate rarely used a consultative style. His

research showed that service jobs with a high degree of customer interaction have a

higher level of burnout. This burnout has been defined by Riggar as being displayed by

the characteristics of �turnover, absenteeism, lowered productivity, psychological

problems, etc.� (Riggar, 1985 in Vallen, 1993, p. 55). Vallen�s study concluded that

high emotional exhaustion and depersonalisation scores (high burnout) correlate with

low POC scores in highly autocratic organisations. He recommended hospitality

managers seeking to reduce their staff turnover should look to their organisational

climate as it undoubtedly affects the ability of a hospitality organisation to deliver

service quality. This is supported by the findings of Kordupleski, Rust and Zahorik

(1993) who found that of the overall quality processes used in service industries was

responsible for 70 % of the variation in an organisation�s output. The processes such as

quality programmes can only be successful when there is genuine staff and management

commitment. Meudell and Gadd (1994) also reported similar results, finding that 6% of

individuals in an organisation felt the process of managing people was good and only

4% thought that management had displayed a positive attitude towards them.

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The issue of management in organisations taking insufficient account of the

individual behavioural perceptions and actions is a constant theme within the service

quality literature. Building a responsive service climate was the focus of a study by

Francese (1993), �previous research has shown that both customers and managers agree

that a responsive service climate is the key to service quality and customer satisfaction�

(p. 55). Drawing on the work of Schneider and Bowen (1985) and Shoorman and

Schneider (1988), Francese proposed a model for service organisations using a support

dimension, a managerial dimension and an adaptive dimension correlating to a

relationship of service responsiveness and service quality. She found a clear link

between teamwork, entrepreneurial management behaviour and adaptive marketing

policies and activities. As such, her results reveal the link between the areas service

quality and responsiveness and organisational climate.

The above studies support theorists such as Schneider (1973) who explored the

relationship between climate and service related issues. Initially, Schneider examined

the relationship between service climate (and other more tangible factors) and customer

intentions to switch their accounts to another bank. He found that none of the objective

indexes of customer participation (size of bank balance, length of time as a bank

customer) was related to switching intentions but found that switching behaviour was

strongly related to climate perceptions. This study revealed that the measure of the

atmosphere in the bank �warm and friendly� was most strongly correlated with

switching intentions. As such this supports the underlying assumption �that the climate

bank employees create for customers is an extension of the climate bank management

creates for employees� (Schneider, 1973 p. 255). Customer retention has been clearly

linked to the climate created for the employees of the organisation.

Ross (1995) in a study of the hotel industry in North Queensland found that

there were major divergences between management and employee service quality

ideals. Following Parkington and Schneider�s (1979) reasoning, this would appear to

have negative consequences for the quality of service offerings of the hotels concerned.

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54

These issues are highly relevant for service managers in their the day to day operations.

Parkington and Schneider (1979) argue that it is possible to get operational staff

enthusiastic using the usual management tools.

Through alterations of policies and procedures and goals it may be possible for

management to effect changes in the degree to which there is emphasis on an

enthusiastic service orientation more similar to that of boundary personnel. This

should reduce the levels of role stress and the levels of negative employee

outcomes. (1979, p. 279).

It is imperative that the quality of the service offerings should improve in service

organisations. Organisational dynamics have a direct impact on the people the

organisation serves, as well as on employee performance and attitudes. Schneider et. al.

(1980) were explicit as to the implication this had for service management, arguing that

consumers are better served if the policies, practices and procedures of an organisation

meet the needs of, and satisfy, employees which results in a directly positive outcome in

terms of service quality for the consumer. The creation of a climate for service is an

example of organisational effectiveness of an organisation being responsive to its

environment, in this case its customers. The relationship between a climate for service

and the service quality perceptions of the customers is clearly supported by

the ways in which branch employees describe some facets of the service

orientation of their branch and the support received from some systems outside

the branch are related to what customers say about the quality of the service they

receive in the branch. (Schneider et. al. 1980, p. 262)

In a study of the banking industry Schneider and Bowen (1985) isolated 10

dimensions of a climate for service, many of which showed a significant correlation

with customer perceptions of service quality in the organisation. They are part of the

overall climate framework and link with the climate dimensions identified by James and

Jones (1979) and others. The service dimensions are shown in Table 2.3 together with

the employee perceptions of each dimension.

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Table 2.3 Climate for service (in banks)

Service Climate Dimensions

Bureaucratic orientation to service

Enthusiastic orientation to service

Managerial behaviour

Service rewards

Customer retention

Personnel support

Operations support

Marketing support

Equipment/supply and support

Employee Perceptions

Following all rules & proceduresDoing the job in a routine fashion

Keeping a sense of familyDesigning new ways to serve thecustomer

Planning and goal setting for servicedelivery

Incentives and other rewards for serviceexcellence

Active attempts to retain customersNot giving special treatment to majorcustomers

Staffing and training permit good service

Easy access to customer recordsError free records

Understanding of customersCare in introducing new products andservices

Equipment is available and up operatingNecessary supplies available

SOURCE: ADAPTED FROM SCHNEIDER (1990)

Whilst this study was completed in the banking industry it none-the-less has

application across all service organisations and is of particular relevance for the

hospitality industry because the nature of the service interaction in banks with its

immediacy is replicated in hospitality.

Schneider and Bowen (1985) also derived five human resource dimensions of

the relationship between climate and service quality with several items loading onto

each dimension. The five dimensions were, work facilitation (10 items), supervision (14

items), organisational career facilitation (6 items), organisational status (4 items) and

new employee socialisation (6 items). They found a consistent correlation between these

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human resource dimensions and customer perceptions of employee morale, branch

administration and most significantly overall quality. It is clear that the implications of

these findings are;

Customer perceptions, attitudes and intentions seem to be affected by what the

employees experience, both in their specific role as service employees and in

their more general role as organizational employees. That is, organizational

practices (both service related and human resource related) are apparently the

source of cues visible to customers and are used by them to evaluate service

quality � In other words, because services themselves yield little tangible

evidence as a useful basis for evaluation, it is how they are delivered, and the

context in which they are delivered that is important. (Schneider & Bowen,

1985, p. 430 - 431)

The climate of the organisation is an important factor in the creation of quality

services as defined by the customer. Within the wider quality movement there is a call

for the incorporation of the concept of employee satisfaction as well as the more widely

used customer satisfaction into the overall focus of the business. This is because the

evidence shows that without an environment which supports the employee it will be

difficult to enlist the employee�s support for the objectives of management (Cole,

Bacayan & White, 1993).

In comparing research, it becomes increasingly clear that when the climate for

human resources dimensions are compared to the more generic climate dimensions that

there is a significant overlap. Table 2.4 shows the degree of congruity between the

human resource dimensions of Schneider and Bowen (1985; 1993) and the more generic

one enunciated by Jones and James (1979) and James and James (1989).

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Table 2.4 Comparison of HRM climate dimensions

SCHNEIDER AND BOWEN(1985; 1993)

JONES AND JAMES (1979)JAMES AND JAMES (1989)

WORK FACILITATION�Conditions on my job do not permit people

to reach their work goals.�

WORK FACILITATIONSupervisor helps achieve goal attainment

through such activities as scheduling,coordinating, planning and providing

resources

SUPERVISIONSupervisors I work with use the rewards

they have (praise, performance appraisals)to let people know when they have done a

fine job.

GOAL EMPHASISSupervisor stimulates personal involvement

in meeting group goals.JOB FEEDBACK

The extent to which an individual is aware ofhow well he is performing on his job.

ORGANISATIONAL CAREERFACILITATION

The organisation provides information andcounselling about my career.

OPPORTUNITIES FOR GROWTH ANDADVANCEMENT

The degree to which an individual feels thatthe organisation provides a vehicle for

development of desired personal skills, goalsand rewards.

ORGANISATIONAL STATUSPeople outside (the organisation) think the

people who work here are high calibrepeople.

PROFESSIONAL ESPRIT DE CORPSThe degree to which an individual believeshis profession has a good image to outsidersand provides opportunities for growth and

advancement.

NEW EMPLOYEE SOCIALISATIONPeople coming on the job get specialtraining that helps them get started.

No directly comparable measure (but jobpressure mentions training. See alsoFriedlander and Greenberg (1971))

James and James (1989) research into psychological climate concentrated on the

extent to which a particular environment (as described by its climate) was of benefit or

otherwise to the individuals exposed to it. Psychological climate was discussed in terms

of being the underlying factor of the usual generic dimensions of climate that they had

found to be invariant over a number of environments. Figure 2.5 displays four

dimensions of psychological climate as identified by James and James (1989) together

with the factors that load upon each dimension. There is considerable evidence, as

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Figure 2.5 General Factor of Psychological Climate (Reproduced from James and James (1989))

General factor ofPsychological Climate

Leader support andfacilitation

Role stress and lack ofharmony

Job challenge andautonomy

Workgroup Cooperation,warmth and friendliness

Hierarchicalinfluence

Psychologicalinfluence

Leader trust andsupport

Leaderinteraction

Leader goalemphasis andfacilitation

Role abiguity

Role conflict

Role overload

Subunit conflict

Organisationidentification

Managementconcern andawareness

Job autonomy

Job importance

Job challengeand variety

Workgroupco-operation

Responsibilityand effectiveness

Workgroupwarmth tofriendliness

REPRODUCED FROM JAMES AND JAMES (1989)

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outlined above, to conclude the research on climate which Schneider and Bowen called

a climate for human relations, and the generic climate dimensions of the many other

theorists, including James and James, have examined are in fact the same construct but

with slightly differing nomenclature. It also follows that the appropriate climate of the

organisation is a prerequisite in the facilitation of service quality. The measurement of

climate in an organisation may provide insights as to the issues that need to be

addressed in order for the organisation to achieve its quality service goals.

The Schneider and Bowen (1993) study replicated previous research using the

same climate dimensions for human resource management and the results were largely

confirmed.

This research points out that managers, in their pursuit of service quality, need to

create two related, but different, climates: a climate for service and a climate for

employee well-being. Our research indicates that a climate for employee well

being serves as a foundation for a climate for service. Employees need to feel

that their own needs have been met within the organization before they can

become enthusiastic about meeting the needs of customers. (Schneider and

Bowen, 1993, p. 43)

Schneider and Bowen argue that companies like Four Seasons Hotels and others

that have implemented employee-centred human resource management practices have a

strategic advantage over other less successful competitors. This reinforces the validity

and profound implications for those companies that are seeking to use organisational

climate as a measure of the effectiveness of the organisation in providing quality

service.

Schneider and Bowen (1993), however, make the point that a generic set of

human resource management practices will not necessarily lead to customer perceptions

of service quality. These practices should be designed to suit the particular

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organisational setting and the consequent customer definition of service quality. In some

settings, procedure driven human resource management practices may be appropriate

and the empowerment of employees may be deemed less important in achieving the

required goals in customer service.

It is also important to note that the measure of service quality that Schneider and

Bowen (1985; 1993) used was developed for the measurement of service in banks.

Whilst Schneider (1990) points to the fact that Zeithaml, Parasuraman and Berry (1990)

have developed a generic service measurement tool (SERVQUAL), no correlation of

the organisational climate and the measurement of its service quality was undertaken.

However, Dean (1997) demonstrated a methodology for making such a comparison in a

study of the applicability of the SERVQUAL model to the health care industry.

2.13 Customer and employee perceptions of customer satisfaction

It has been reported above that a number of studies have claimed there exists a

positive relationship between organisational climate and customer satisfaction. A

related, but different, question is the extent to which employees� perceptions of

customer satisfaction and customers own reports of satisfaction match.

This is an important issue, particularly for service industries such as the hotel

industry, as customer feedback may be difficult to gather, and particularly difficult to

gather in an unbiased form. Should a good correspondence exist between employee

perceptions of customer satisfaction and reports of satisfaction directly provided by

customers, then in many situations employee perception of customer satisfaction may be

used as a more easily measured index of feedback to management. A small number of

studies has addressed this issue.

Schneider et al., (1980) in a study gathering data from both customers and

employees of 23 bank branches found a strong correspondence between branch

customer attitudes about service quality and branch employee perceptions of the quality

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of the service customers received (r = .67). Schneider and Bowen (1985) replicated the

earlier study gathering data from 142 employees and 968 customers of 28 bank

branches. This study also found a strong relationship between employee perception of

customer satisfaction and that reported directly by customers (r = .63).

The results of these two studies indicate that direct reports of customer

satisfaction are closely mirrored by employee perceptions of customer satisfaction.

Consequently, it may be expected that in many instances employee perceptions of

customer satisfaction will provide management with useful feedback. This would be

particularly so in service environments where production and consumption are

instantaneous and direct assessment of the customer perceptions, at the time, would

negatively impact upon the product�s quality.

2.14 Climate and innovation.

Organisational analysts are increasingly reporting that the failure of innovations

such as TQM, that are more often than not a failure in the implementation stage. It is

here that climate has an important role to play, in both informing management of the

likelihood of success and subsequently during the implementation stage (Klein & Sorra,

1996; Eskildon, 1994). Organisational members� readiness to implement an innovation

strategy is a function of, the climate for innovation; the fit between the values of the end

users; and how well the planned innovation matches those values. According to Klein

and Sorra (1996) �an organisation�s climate for the implementation of a given

innovation refers to targeted employees� summary perceptions of the extent to which

their use of a specific innovation is rewarded, supported, and expected within their

organization� (p. 1060). Additionally, if there is a poor fit with the values of the targeted

group of employees then the implementation will be less successful. Both climate and

culture are important in the successful implementation of innovations such as quality

improvement programmes (Klein and Sorra, 1996).

Scott and Bruce (1994) in discussing the same issues are less concerned with the

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effect of individual values on innovation. They argue that people in the workplace

respond to the signals and expectancies they receive, regulating their own behaviour in

order to �realize positive self evaluative consequences such as self satisfaction and self

pride� (1994, p. 582). For them the effect of climate on innovation is unmediated by

individual values and only two (performance reward dependency and flexibility) of 10

generic climate dimensions studied were consistently related to innovative performance.

Harrington and Akehurst (1996) found there appeared to be a high level of

awareness of quality related issues in the cross section of the British hospitality

industry. Few managers at an operational level had systems, such as human resource

practices, in place to implement service quality initiatives.

Schneider, Brief and Guzzo (1996) examined the linkage between climate and

culture and the concept of total organisational change that has been achieved by such

firms as Ritz Carlton, AT&T and others. They suggest that these firms are more

successful because they are more effective in managing three aspects of climate (nature

of interpersonal relationships, the nature of the hierarchy and the focus on support and

rewards) simultaneously. The need is to establish a climate that fosters innovation,

customer service, and citizenship behaviour concurrently which in turn allows both high

quality service and enhances organisational performance and success (Schneider,

Gunnarson & Niles-Jolly, 1994).

2.15 Organisational climate and implications for the hotel industry

The hospitality industry in general and hotel companies in particular are

becoming more aware of the need to understand their employee perceptions and the

climate generated by their organisation because of its links to the perceptions and levels

of customer service. While there are obvious advantages in understanding the forces

that are involved in the creation of the organisational climate, it is the linking of that

understanding to day to day activities that holds major significance for management.

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The effect of managerial actions and leadership factors on the climate of the

organisation has been known since the studies of Litwin and Stringer (1968), McGregor

(1987) Kozlowski and Dougherty (1989) and others. Brown and Leigh (1996) argued

for supportive management where subordinates may try and fail without any fear of

reprisals. This is where employees are allowed to experiment with new methods

bringing creativity to workplace problems. The level of control and freedom and sense

of security that this supportive style of management engenders is more likely to produce

a high level of job commitment and motivation (Argyris, 1964; Kahn, 1990). The

Brown and Leigh (1996) study clearly demonstrates the positive relationship between

supportive management together with clear work goals as being crucial in producing

greater job effort, commitment, and performance. They conclude that the study,

demonstrated an important series of linkages to work relating psychological

climate and job involvement to work performance and indicated that

organizational environment is perceived as psychologically safe and meaningful

is related directly to job involvement and indirectly to effort and work

performance. (Brown and Leigh, 1996, p. 365)

It is established that the psychological climate of individual employees of an

organisation can have pronounced positive or negative effects on the organisation and

its performance. Therefore, it becomes essential that management on a continual basis

should monitor employee attitudes such as the climate of the organisation. The

importance of employee attitude has been recognised by British Petroleum Exploration

who regularly surveys employees. It is especially useful when any organisational

changes are being contemplated (Standing, Martin and Moravec, 1991). Blenkhorn &

Gaber (1995) and Shea (1996) point out that the basis of every customer driven

organisation is the staff who must be respected and valued by their organisation. Shea

(1996) observed that climate surveys are being used by service organisations like Avis,

Amex, St George Bank and the Ritz Carlton Hotel Group to monitor how their

employees perceive the organisation.

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Organisations pursuing a high quality service strategy appear to be more

cognisant of the role that the climate of the organisation has in the provision of that

service. Organisations like the Ritz Carlton ensure there are no mixed messages in the

routines they follow and try to ensure that every employee feels valued by the

organisation (Schneider, Brief and Guzzo, 1996). Their practices and procedures are

enunciated in a document called the Ritz Carlton �Gold Standards� which includes the

�Credo�, the �Motto�, �Three Steps to Service� and the �Basics�. It is this document that

forms not only the core of the induction process for new staff, but also the operational

mantra for all employees (Partlow, 1993). Another major international hotel chain, the

Marriott Corporation, has for some years adopted an employee survey that is conducted

on a twice-yearly basis to monitor employees� attitudes to the company and

management. This process is firmly embedded into the Marriott management

procedures and is now used as one of the benchmarks of management performance. It

ensures that employee opinions are taken into account and allows for a monitoring of

individual departments by senior regional management. Each hotel general manager and

departmental manager is required to discuss the results at employee meetings (personal

communication Wallace, 1997).

The ramifications for the hospitality industry are plain: the climate of the

workplace is a fundamental factor in the provision of high quality services. Without an

understanding of the function of the climate (psychological climate) of the organisation,

any attempt to improve the quality of the service provision will be in doubt. But, as

Schneider et al., (1994) point out, there are in fact three climates that need to be created

by senior managers, in their terms, a climate for innovation, a climate for service

excellence and a climate for citizenship behaviour. These climates can coexistent in a

successful organisation especially where there is implementation of quality management

initiatives. Organisations need to recognise the climate for human resources or

employee well being (called citizenship by Schneider et al., 1996) in their organisations

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as the basis for the development of a climate for innovation and a climate for service.

They should not be seen as separate entities so much as elements of a greater whole

with the climate for service and the climate for innovation embedded in the larger

concept of a climate for employee well being, which together represent the member

perceptions of the total organisation. Pfeffer (1998) stresses that the successful

management of people will have multiple dimensions that are shown by certain

organisational characteristics,

! Employment security

! Selective hiring of new personnel

! Self-managed teams and decentralisation of decision making as the basic principles

of organisational design

! Comparatively high compensation contingent on organisational performance

! Extensive training

! Reduced status distinctions and barriers, including dress, language, office

arrangements, and wage differences across levels

! Extensive sharing of financial and performance information throughout the

organisation

For Pfeffer these characteristics must be viewed in a holistic way because if

firms try to implement these initiatives on a piecemeal basis they can actually be

counter-productive. Whilst it clearly takes time to implement such an agenda for

change, a time horizon needs to be set for implementation. Pfeffer (1998) has distilled

these seven practices of successful organisations from various studies, related literature,

observation and experience. In the hospitality industry context, very few organisations

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would be able to claim the successful implementation of such practices, which was a

view supported by Vallen (1993).

2.16 Summary and conclusion

In this chapter, a review of the literature related to the concept of organisational

climate was presented. It was reported that there have been, and continues to be, some

dispute as to the precise definition of this concept. For the purposes of the current study,

organisational climate was described as an enduring characteristic of an organisation

comprising of member collective perceptions about their organisation across a range of

dimensions. It is a characteristic that is produced by interactions between employees,

reflects prevalent norms, and acts as a source of influence for shaping behaviour.

Organisational climate was described as being distinct from organisational

culture. Culture was described as being deeply rooted in the structure of an organisation,

being based upon values, beliefs and assumptions held by its members. Climate was

described to present social environments in relatively static terms measured by a broad

set of dimensions and is considered as temporary. The above discussion showed that

indices or organisational climate maybe determined by the aggregation of psychological

climate values for individual members of the organisation.

A number of instruments have been presented that purport to provide measures

of organisational climate within organisations. Two important (for this thesis)

instruments were the Psychological Climate Questionnaire (PCQ) of Jones and James

(1979) and the modified version of the same instrument presented by Ryder and

Southey (1990). The original instrument provided measures on 5 or 6 dimensions which

were aggregated across individuals to provide organisational climate measures for

organisations and subunits of organisations on each of the dimensions. The version

presented by Ryder and Southey (1990) contained modifications which rectified some

scaling and presentation problems and reworded questions to both remove sexist

language and make it more applicable to a non-military organisation.

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Implications of the relationship between organisational climate and the delivery

of high quality service within the hospitality industry were discussed. Sinclair (1996),

for example, discussed the need to develop a climate of trust for the successful

implementation of TQM. Other researchers, such as Partlow (1993) provide accounts of

practices and procedures that relate to climate issues, which are seen by their

organisations as central to the quality improvement process. A number of researchers

reported the link between climate and burnout of employees.

A significant link was shown between the organisational climate of employees

and the climate created by employees for their customers. Schneider (1973) reported

that it was this customer climate that was most strongly linked with customers choosing

to switch from one service deliverer to another.

In a related issue, Parkington and Schneider (1979) found a close

correspondence between employee perception of service quality and the perceptions of

the customer. Schneider and Bowen (1985 & 1993) also found this strong link between

employee perception of customer satisfaction and that reported by customers.

The hospitality industry relies heavily upon the direct interaction between employees

and customers to ensure the perception of the delivery of high quality service from the

organisation. The literature presented in this chapter indicates that organisational

climate is multidimensional and may be represented by aggregated scores on

psychological dimensions gathered from individual employees. Within the hospitality

industry, organisational climate is likely to be a key factor (or set of factors) in the

delivery of high quality service to their customers. In Chapter 3 theoretical models will

be presented proposing relationships between the dimensions of organisational climate,

perceived customer satisfaction, and outcomes for hotels. Specific aims and hypotheses

generated from these models will also be presented.

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3.0 Theoretical Models and Hypotheses

3.1 The research question

This study will apply a modified version of the Jones and James (1979)

Psychological Climate Questionnaire to form aggregate scores representing the

organisational climate within the 14 hotels under study. Relationships between the

dimensions of organisational climate, so produced, and (a) employee demographic

variables, (b) employee perceptions of customer satisfaction and (c) hotel performance

(as indexed by REVPAR) will be examined.

These examinations will be conducted in order to satisfy the overall aim of this

study to answer the following research question:

What is the nature and degree of influence that organisational climate has

upon the level of performance of organisations within the Australian hotel

industry?

3.2 The dimensions of organisational climate within the hotels

The instrument used to investigate organisational climate in this study represents

a modification of the instrument presented by Ryder and Southey (1990), which itself

represented a modification of the Psychological Climate Questionnaire presented by

Jones and James (1979). The first specific aim of this study is:

Aim 1: To identify the underlying dimensions of organisational climate

within Australian hotels.

This aim will be satisfied by applying the modified organisational climate

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questionnaire to employees of the 14 hotels under study, and by appling Principal

Components Analysis (PCA) to the employee responses. Given, firstly, that the

instrument which will be used is not identical to that used in earlier study, and secondly,

that factor structures reflect not only the instrument, but also the sample under study, it

is difficult to state highly specific hypotheses regarding the precise nature of the

dimensions that will be extracted. Although the study of Ryder and Southey produced a

set of organisational climate dimensions broadly consistent with those presented earlier

by Jones and James, they extracted 10, rather than 6 factors, and provided only 2 of

their 6 interpretable factors with nomenclature identical to that used in the earlier study.

Figure 3.1 illustrates the dimensions of organisational climate that might be

expected on the basis of Jones and James (1979).

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Figure 3.1 Organisational Climate Model A: The dimensions of organisational

climate from the study of Jones and James (1979).

It might, however, be possible that part of the difference in factor structure

found by Ryder and Southey, relates to differences between Australian culture and that

of the U.S. If this is the case, the underlying dimensions of organisational climate may

be more similar to those shown in Figure 3.2.

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Figure 3.2 Organisational Climate Model B: The dimensions of organisational

climate from the study of Ryder and Southey (1990).

On the basis of the factor structures of organisational climate presented by Jones

and James (1979) and Ryder and Southey (1990) the following hypothesis is proposed:

Hypothesis 1: A limited number of factors will be identified as being able to

determine the organisational climate across the hotels in this study.

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It should be understood that neither Organisational Climate Model A, or

Organisational Climate Model B, are causal (or �structural�) models. What is illustrated

in Figures 3.1 and 3.2 are possible dimensions which would underlie climate within an

organisation.

3.3 The relationships between employee demographic variables, organisational

climate, and employee perceptions of customer satisfaction

In Chapter 2 it was argued that organisational climate may be represented by the

sum of the perceptions of psychological climate of the individual employees within an

organisation. It was also argued that the environment within the service organisation

would strongly affect the climate within which the customer operated (i.e., be strongly

related to customer satisfaction). Further, a number of studies were presented which

showed strong correspondence between the employee�s perception of customer

satisfaction and customer reports of satisfaction. Structural Model A, presented in

Figure 3.3, proposes that employee demographic variables will affect organisational

climate, and organisational climate affects employee perceptions of customer

satisfaction.

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Figure 3.3 Structural Model A

The second aim of this study is:

Aim 2: To evaluate the notion that employee perception of customer

satisfaction is affected by organisational climate, which is, in turn, affected by

demographic variables of the employees.

Or, in other words, the second aim of this project is to test Structural Model A.

Specific hypotheses generated from Structural Model A comprise:

Hypothesis 2: There is a relationship between an aggregate measure of

organisational climate and employee perception of customer satisfaction.

Hypothesis 3: Employee demographic variables, taken as a multivariate

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variable, are a predictor of an aggregate measure of organisational climate.

3.4 The relationships between the dimensions of organisational climate,

employee perceptions of customer satisfaction, and performance of hotels.

As outlined in Chapter 2, the TQM literature clearly provides an expectation that

a good organisational climate is associated with high levels of customer satisfaction,

and that customer satisfaction is the key to financial success of an organisation.

Structural Model B, presented in Figure 3.4, describes such a relationship where the set

of dimensions of organisational climate (taken for the moment as represented by the

dimensions described by Jones and James, 1979) predict employee perception of

customer satisfaction, which in turn predicts hotel performance (as indexed by

REVPAR).

The third aim of this study is:

Aim 3: To evaluate the notion that REVPAR is affected by the level of

customer satisfaction (as indexed by employee perception of customer satisfaction)

which, in turn, is affected by the set of dimensions of organisational climate.

Or, in other words, the second aim of this project is to test Structural Model B.

Specific hypotheses generated from Structural Model B comprise;

Hypothesis 4: There will be a relationship between employee perception of

customer satisfaction and REVPAR.

Hypothesis 5: The dimensions of organisational climate, taken as a

multivariate variable, are a predictor of an aggregate measure of employee perception

of customer satisfaction.

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Figure 3.4 Structural Model B

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4.0 Method

4.1 Introduction

This chapter will provide details of the method used in this study to test the

models and hypotheses presented in Chapter 3. The approach of this study, whilst

primarily quantitative in nature, also includes some qualitative analysis and some

qualitative interpretation of the data.

Justification for the particular research paradigm and the method of this study

will be provided. Further, the use of the organisational climate survey method will be

detailed together with the formulation and subsequent modification of the selected

instrument. Details of the sample selection process will be explained and the parameters

of the sample will be described. The selection process of the demographic details that

were deemed to be of importance to the study and the organisational climate

questionnaire will be justified.

To see what, if any, the relationship is between organisational climate and

organisational performance required the collection of data on dependent variables that

measured hotel performance. The two principal measures used for the study were

employee perceptions of customer satisfaction, and the average daily room rate

multiplied by the occupancy percentages for a hotel (REVPAR). This latter measure is a

widely used industry method of comparing and assessing hotel performance. Morey and

Dittman (1995) used REVPAR as a benchmark in the evaluating of hotel general

manager�s performance. Vallen and Vallen (1991) described REVPAR as an important

statistic in hotel appraisals with it being the basis used by Lodging Magazine to define

success in their annual study of hotels. Both of these dependent variables will be

discussed in detail providing the rationale for their selection.

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The pilot study and pre-test procedures are described, as is the affect. This

feedback had regarding some major decisions on the final instruments, the approaches

to the hotels, the process of dealing with the hotels' management and staff, and data

collection methods. A description will also be given of the process required to get co-

operation from the 14 hotels that participated in the study.

The data collection methods themselves will also be analysed, providing a

detailed understanding of the various processes that were required and followed during

the study. This analysis will detail the sensitivities that became apparent from both

middle level and senior managers.

4.2 Justification for the paradigm and method

Justification for the research method is firmly rooted in the human relations�

school of management research. The psychological forces that impact upon individual

employees� behaviours and perceptions have been part of this research stream almost

from the beginning of the school of thought. Human relations management theories that

take the perspective of concern for individual employees, really only began to emerge in

the last 75 years of this century. Prior to that time, the impact of management actions on

the individual was taken very much for granted. Or, as in the hotel industry, there was

often a paternalistic view taken of staff, if they were valued at all by the employer

(Davidson and De Marco, 1999). Of course if they were not valued, their job tenure

would be very short indeed. Labour protection laws were only just being considered in

the first quarter of the century in most western democratic countries. In many respects

Australia was ahead of many countries in protecting workers� rights with its Harvester

judgement of 1914 (Gardner & Palmer, 1997). Whilst the Harvester judgement,

delivered from the industrial court, was about the living wage for a family, it showed

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that the state held employers to be responsible for treating their workers reasonably. Of

course the existence of a powerful trade union movement was crucial in obtaining

fairness of treatment. Traditionally, the worldwide hotel industry has been an industry

where the union movement has never really been strong in membership. This is

particularly so in Australia. A reason put forward by Timo (1993) is the difficulty in

covering a relatively small number of workers on one site.

Many human relations theorists and especially those who write about the

hospitality industry continually stress that understanding employees is fundamental to

achieving good service and customer satisfaction (Meudell & Gadd, 1994; Francese,

1993; Borchgrevink & Susskind, 1999). Organisational climate studies, as discussed in

chapter 2 have been used as a management tool in the understanding and measuring of

employee perceptions about their organisation (Jones & James, 1979; James & James

1989; Schneider & Bowen, 1985; and Ryder & Southey, 1990, among others). These

perceptions can be expressed through a parsimonious set of dimensions that can be

aggregated to the level of analysis of the organisation but can also be used to analyse the

relationships of the individual to various dependent variables such as customer

satisfaction and REVPAR.

Therefore, this particular research method was chosen because it has a

significant research history and tradition of trying to explain and understand individuals

within organisational settings. What is surprising is that there has been no empirical

academic study completed within the hotel industry. Climate studies, as described in

Chapter 2, have been completed in a range of industries and the application of this

research method to service industries has been a focus of Schneider and Bowen (1985).

Yet the construct�s use to date in the hotel industry literature has been confined to

merely descriptive references which combine culture and climate (Fancese, 1999 and

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Vallen, 1993). The only real use of organisational climate instruments has been through

individual hotel companies doing one-off surveys and only one major chain, Marriott

Hotels and Resorts, has adopted it as standard management tool in the understanding of

employee perceptions.

Much of the current leading edge management literature examines change

management in all its many guises and it embraces the concept of the learning

organisation. Senge (1990) enthuses about empowerment and quality products,

processes and services. This is predicated upon a relatively stable work force. Yet in an

industry, such as the four and five star hotel industry, where it is the norm for the labour

costs to take 30 � 40% or more of turnover (Howarth, 1995), virtually no research has

been done on this cost element and the interaction with management change.

4.3 Identification and rationale for the sample

The current study follows the methods of James and Jones (1976); Jones and

James (1979); Schnieder (1973); Schneider and Bowen (1985); Furnham and Drakely

(1993); Patterson et al., (1996); Ryder and Southey (1990) and many other

organisational climate researchers in selecting an organisation as the unit of analysis.

The focus of the data collected for the study was the hotel industry and in particular the

four and five star hotels. Considerable thought was given to how the hotels would be

selected for this Australian survey.

The survey is divided in 2 major parts: (1) assessing the organisational climate;

and (2) ascertaining the demographic and performance data. Whilst the study focused

upon the organisation as one unit of analysis it also uses the individual employee as the

other unit of analysis, making it a multilevel approach. The research models presented

in chapter 3 clearly show that to test the hypotheses posited, there is a need to undertake

multilevel research.

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Because there are many levels and styles of hotels and to ensure that the

individual hotels returned enough questionnaires for meaningful statistical analysis it

was decided to concentrate upon hotels that were at least four star and with in excess of

150 rooms. These parameters would ensure that the total staffing for each hotel was in

excess of 100 people and the sample size would meet the requirements for the proposed

quantitative statistical analysis.

The next issue to resolve was if this should be an Australia wide sample or

concentrated upon, or within, one region. Whilst an Australia wide sample would have

provided some results that could be interpreted more broadly, the sheer scale and

management of the process would present certain logistical problems. Another

consideration was whether to concentrate upon one company with hotels across the

country. This was rejected because of the possible sensitivities one company may have

with the results and the limitations this may place upon publication. Also, there would

be a possible bias of any of the results obtained because of a particular company culture

and procedures.

It was, therefore, considered that a broad regional study that encompassed a

number of sub-regions representing an appropriate range of hotels would be optimal.

This necessitated an examination of the concentration of hotels in the four and five star

category in Australia based upon the regional areas used by the Tourism Forecasting

Council (1998, p. 24-25). These areas were Sydney and NSW; Melbourne and Victoria;

Perth and Western Australia; Brisbane, Gold Coast, and Cairns; Adelaide and South

Australia; Hobart and Tasmania; Canberra; and Darwin and the Northern Territory.

Because of the requirement for a concentration of four and five star hotels with 150

rooms, only three areas geographically matched the profile, viz., Sydney, Melbourne,

and Southeast Queensland (Brisbane, Gold Coast and the Sunshine Coast). Both Sydney

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and Melbourne were ruled out, because, whilst they had the number of four and five star

hotels, they were heavily concentrated within the cities and did not have the range of

sub-regions. This left the Brisbane, Gold Coast and Cairns regions. As Queensland is so

diverse, it was decided that Southeast Queensland encompassed such a wide variety of

sub-regions and met the requirements in numbers of four and five star hotels that it was

appropriate to concentrate the study upon this area.

What is a four and five star hotel? According to the Royal Automobile Club of

Queensland (RACQ, 1997) the definitions are:

Five star hotels -

International style establishments offering a superior standard of

appointments, furnishings and décor with an extensive range of first class

guest services. A number and variety of room styles and/or suites

available. Choice of dining facilities, 24 hour room service and additional

shopping or recreational facilities available.

Four and half star hotels -

Establishments offering all the comfort of a four star establishment but

with a greater range of facilities, higher levels of presentation and

individual guest services.

Four star hotels -

Exceptionally well appointed establishments with high quality

furnishings and offering a high degree of comfort. Fully air conditioned.

High standard of presentation and guest services provided. Restaurant

and meals available on premises.

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Three star hotels -

Well appointed establishments offering a comfortable standard of

accommodation, with above average floor coverings, furnishings,

lighting and ample heating/cooling facilities.

(Source, RACQ, 1997, p.22)

At the time of the survey, and within the parameters set of four to five star hotels

with 150 rooms plus, Brisbane had 13 hotels, the Gold Coast 15 hotels, and the

Sunshine/Fraser Coast four hotels making a total of 31 eligible hotels in the study area.

Those that actually took part were, five from Brisbane, six from the Gold Coast and

three from the Sunshine/Fraser Coast. This represents 44% of the hotels.

4.4 Gaining co-operation of the hotels

When this research study was initially undertaken it was always realised that

without the full co-operation of sufficient hotels it would not be viable. Two immediate

issues needed to be addressed, firstly, how were hotels to be approached and selected,

and secondly, on what basis could they be persuaded to co-operate. For initial contacts,

the researcher used his personal network of hotel managers, where it became clear after

numerous discussions there was a definite reluctance to take part. The reasons put

forward included the total distrust of academic research. As is made clear by the

comment of a general manager of a Queensland five star hotel when he expressed his

opinion by stating what he thought of such studies as �being of absolutely no relevance

to running an hotel� (name withheld). At the other end of the negative comment

spectrum was a comment by a senior HRM that �it was all very well doing research but

the time it took of staff and management was just too much� (name withheld).

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It was at this stage that a reference group (expert panel) of 6 senior hotel

executives was established. Their advice ranged from the formulation of the instruments

as previously discussed to the lobbying of industry colleagues to encourage them to take

part. Each member of the expert panel was visited and the overall project of ascertaining

organisational climate and comparing it to organisational performance was explained in

detail. Had such a survey been commissioned from private consultants it would cost

several thousands of dollars. As a senior executive of Marriott in Australia was a

member of the reference group, and as Marriott already used an organisational climate

survey, the management benefits were easily made clear to all the executives.

In particular, Mr Grant Bowie, Chairman of the South East Queensland

Accommodation Division of the Queensland Hotel Association agreed to support the

project and call for volunteers from all eligible members within the designated area.

This was done via a regular �Monthly Chairman�s Newsletter�. There is little doubt that

without this support and the various networks of the expert panel it would have proved

extremely difficult to proceed with the level of participation achieved. The researcher

attended several formal and informal meetings with executives in the hotel industry in

order to firstly talk about organisational climate and to inform them that a major study

was to be undertaken.

A comment made by several of the expert panel was that this type of survey,

asking staff their perceptions, was seen as a very threatening process to the management

of a property. These comments were supported by 11 of 14 HR managers of the

properties that eventually took part.

The response to the chairman�s newsletter brought forth 17 hotels that expressed an

interest in taking part. All of these hotels were visited and detailed discussions took

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place with the general managers and the HRM departments. This entailed a full

explanation of the background of the instrument and its major dimensions. It also

allowed the managers to ask how the results would be processed and how they might be

interpreted. These discussions ended with the offer to each hotel that they would

receive:

! full confidentially and anonymity

! a full descriptive statistical report on their own organisational climate with the

overall means for each dimension broken down into departments

! an interpretative report accompanying the statistical report on of their organisational

climate

! a pre-briefing with both senior management and departmental heads if required

! a post briefing with both senior management and departmental heads if required

In return the hotels would agree to facilitate the distribution of the questionnaire by:

! the general manager including a short note to encourage staff to complete the

questionnaire

! HRM would ensure that the questionnaires were distributed through the

departmental heads

! HRM would ensure that each departmental head was fully briefed on how the

questionnaire should be completed

! HRM would ensure that departmental heads provided a briefing to their staff

! HRM would distribute the management questionnaire

! HRM would act as a collection point

! the general manager or financial controller would complete the profile document

that gave key financial performance indicators

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As can been seen from the above points, the process from both the hotels� and

researcher�s perspective was fairly complex and involved. Of the original 17, 2 hotels

withdrew from participation when the full detail of the study was explained. The

reasons given were, in one case, they were not prepared to spend the time required and

in the second case, the manager was being transferred. A fact he was not aware of when

he responded to the initial request.

One other hotel withdrew from participation at the last minute because they said

they were going to undertake a major re-structure of their organisation. This left the 14

hotels that actually participated.

There was a fairly constant need to keep in weekly touch with the properties because

the actual dates of the survey were being left to them to select in order to fit in with

business requirements. It is noteworthy that the distribution and collection process was

without any real problems. The promised reports on each hotel�s organisational climate

were returned within two months of the data being collected. Whilst the detail of these

findings are fully discussed in Chapters 5, 6 and 7 it is interesting to note that only two

hotels took advantage of the offer to conduct a post report briefing. Four of the other

hotels made contact, by phone, after the reports were sent to discuss the contents. The

eight hotels that did not respond were all contacted. Several said they would get back to

the researcher when they had time to digest the contents, but none has done so. The

other hotels simply expressed their thanks, saying that, their management team would

discuss the report.

The reports were by necessity quite detailed and from the experience of the 2 hotels

who wanted detailed de-briefing for the senior management the main concern was to

ensure that they were reading the results correctly. Contact with the HRM departments

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of the hotels that required no explanation sometime after has revealed that the survey

confirmed what senior managers already suspected about their organisational climate

and thus were not keen to pursue the issue. A comment was made that �it confirms what

we know but within the operational constraints there is little we can do to improve�

(name withheld).

4.5 Formulation of the survey instruments

The main questionnaire was the organisational climate, a modified version of

Jones and James (1979), plus demographic details for individual employees. Another

instrument was developed to ascertain certain financial and statistical information. This

information was required for the analysis of organisational climate in each hotel to test

the hypothesis that performance is correlated with organisational climate. Also a third

instrument was used to collect data only from managers within each property that

focussed upon demographics and performance measures at the hotel level. This

instrument was primarily used as a check on operational and performance indicators.

4.5.1 The organisational climate questionnaire

The instrument is capable of producing an empirical assessment of the

influences exerted by both situational and individual factors in the development of

work-related perceptions. As discussed in the Chapter 2 section 2.15, it was originally

based upon 35 a priori scales drawn from the literature that are assessed by 145 items.

Ryder and Southey (1990) used the Jones and James instrument to survey a large

public service building, construction and maintenance authority in Western Australia.

They reported that is was necessary to modify the instrument in several ways. Some of

the items were reworded because of culturally specific meanings and the eradication of

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sexist language. Further modification was required to remove wording that referred

specifically to a military setting (the original Jones and James instrument was used on

US Navy personnel). The original questionnaire used a variety of response methods

across items and so the response categories were also modified to a consistent seven

point Likert type scale as this would reduce the time taken by each respondent to

complete the questionnaire. Ryder and Southey also reported that the 145 item revised

questionnaire took approximately 30 minutes to complete.

The instrument used in this study, followed Ryder and Southey�s modifications

but additionally needed to adjust the language from that suitable for the public service to

that of the hotel context. This required only some fine-tuning of certain item wordings.

However, there was a far more contentious issue of the formulating of the current

instrument. A 30-minute completion time for the questionnaire (Ryder & Southey,

1990) was going to be a major impediment that threatened the feasibility of the whole

study. The author�s 20 years of experience within the hotel industry and discussions

with hotel managers confirmed that such a long and complicated survey instrument

would simply not get the required response rate. Sekaran (1992) noted that there is an

inverse relationship between the length of the questionnaire and response rate. Indeed

many hotel managers indicated that participation would depend upon what they saw as

being a reasonable length for the instrument.

After consultation and email discussions with one of the original co-authors of

the questionnaire Professor Lawrence James, Pilot Oil Professor of Management at the

University of Tennessee, Knoxville, it was agreed that a shortened version of the

instrument would still capture the construct. Because the original instrument had

between two and seven items loading upon each factor and taking into account the

analysis of Ryder and Southey�s which showed improved reliabilities it was decided

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that the first 2 items loading onto the 35 a priori scales would be used. The approach of

using a shortened version of the instrument was endorsed by Professor James (via e-

mail, on the 24th February 1997) and also by Professor Ryder, Professor of

Management, Griffith University, Gold Coast (February 1997).

The shortened version of the organisational climate qustionnaire now consisted

of 70 items with a rooted seven point Likert type scale: 1 - strongly disagree to 7 -

strongly agree. All items were grouped onto five pages with between 13 and 15 items

per page. The 70 items for the 35 a priori scales were randomly distributed thought the

questionnaire. Instructions were given in the short preamble and the rooted seven point

Likert scale and instructions were repeated on every page. The 70 items and the 35 a

priori scales used to develop them are presented in Table 4.1. The full questionnaire is

presented in Appendix A.

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Table 4.1 70 items of the modified version of the PCQ used in this study and 35 the �a priori� scales used by Jones and James (1979).

�a priori� Scale Item # Item

1. Support 8 Your supervisor is friendly and easy to approach.20 Your supervisor is attentive to what you say.

2. Work Facilitation 9 Your supervisor offers new ideas for job and related problems.21 Your supervisor provides the help you need to schedule your work ahead of time.

3. Goal Emphasis 30 Your superior emphasises high standards of performance.33 Your supervisor sets an example by working hard himself or herself.

4. Interaction Facilitation 14 Your supervisor encourages the people who work for him or her to exchange ideas and opinions.45 Your supervisor encourages the people who work for him or her to work as a team.

5. Job Feedback 29 You have good information on where you stand and how your performance is evaluated.38 You are aware of how well your work group is meeting its objectives.

6. Confidence and 4 Staff members generally trust their supervisors.Trust Up 15 Staff members generally trust their managers.

7. Upward Interaction 51 Your manager is successful in dealing with higher levels of management.70 Your immediate supervisor is successful in dealing with higher levels of management.

8. Awareness of Employees 37 Supervisors generally know what is going on in their work groups.needs and problems 49 Managers keep well informed about the needs and problems of employees.

9. Openness of Expression 31 The ideas and suggestions of staff members are paid attention to.44 Communication is hindered by following chain of command rules.

10. Job Variety 25 There is variety in your job.32 You have the opportunity to do a number of different things in your job.

11. Job Challenge 2 Your job requires a high level of skill and training.43 You have opportunities to make full use of your knowledge and skills in your job.

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Table 4.1 Continued

�a priori� Scale Item # Item

12. Professional Esprit 41 The hotel has a good image to outsiders.de Corps 60 Under most circumstances I would recommend this hotel to a prospective staff member.

13. Job Autonomy 1 Opportunity for independent thought and action exists in your job.12 Responsibility is assigned so that individuals have authority within their own area.

14. Organisational Esprit 42 Working in this hotel is beneficial to your career.de Corps 56 This hotel is concerned with assisting the local community.

15. Opportunities for Growth 23 You have opportunities to learn worthwhile skills and knowledge in your job.and Development 48 The hotel emphasises personal growth and development.

16. Workgroup Esprit 61 Most of the personnel in our department would not want to change to another department.de Corps 62 Most members of my work group take pride in their jobs.

17. Role Ambiguity 11 Your job responsibilities are clearly defined.24 New staff members get on-the-job training they need.

18. Efficiency of Job 7 You are able to get the money, supplies, equipment, etc. your work group needs to do its work well.Design 19 Procedures are designed so that resources are used efficiently.

19. Role Conflict 18 You have opportunities to complete the work you start.65 Excessive rules and regulations interfere with how well I am able to do my job.

20. Conflict of Org. 57 Things in this hotel seem to happen contrary to rules and regulations. Goals and Objectives 59 In this hotel things are planned so that everyone is getting in each others way.

21. Job Pressure 26 Your hours of work are irregular.67 Compared with other work groups, my work group is under much less pressure to produce.

22. Planing & Coordination 55 The way your work group is organised hinders the efficient conduct of work.66 Overall I think my immediate supervisor is doing a good job.

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Table 4.1 Continued

�a priori� Scale Item # Item

23. Opportunities to Deal 13 Dealing with other people is part of your job.with Others 68 In your job the opportunities to get to know people are limited.

24. Planning and Effectiveness 5 The methods of your work are kept up to date.47 The hotel strives to do a better job than other hotels of the same type.

25. Ambiguity of Org. 46 It is possible to get accurate information on the policies and objectives of this hotel.Structure 52 The objectives of the hotel are clearly defined.

26. Confidence & Trust 27 Everything in this hotel is checked; individual judgement is not trusted.Down 36 People act as though everyone must be watched or they will slacken off.

27. Job Standards 3 You are required to meet rigid standards of quality in your work.39 Your job demands precision.

28. Consistent Application 17 The hotel�s policies are consistently applied to all staff members.of Org. Policy 50 Discipline in this hotel is maintained consistently.

29. Job Importance 6 You are required to perform tasks on your job which you consider relatively unimportant or unnecessary.54 Your work is important.

30. Reputation for 64 My department, compared to all other departments would be one of the most productive.Effectiveness 69 Compared to all other similar work groups in this hotel, my work group would be the most productive.

31. Workgroup Friendliness 34 A friendly atmosphere prevails among most of the members of your workgroup.and Warmth 40 Members of your work group trust each other.

32. Workgroup Cooperation 10 A spirit of cooperation exists in your workgroup.22 There is friction in your workgroup.

33. Interdepartmental 53 There is conflict between your department and other departments of the hotel.Cooperation 63 Generally there are friendly and co-operative relationships between the different departments of the hotel.

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Table 4.1 Continued

�a priori� Scale Item # Item

34. Org. Communication 16 You are given advanced information about changes which might affect you.Down 58 In this hotel the only source of information on important matters is the grapevine.

35. Fairness & Objectiveness 28 Being liked is important in getting a promotion.of Rewards 35 Hotel politics count in getting a promotion.

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As discussed in Chapter 2 there has been some considerable debate over the

validity of using a multilevel research approach with 2 units of analysis, namely the

organisation and the individual employee, most notably from Glick (1985). This

criticism was rebutted by James, Joyce and Slocum (1988) arguing it is the individuals

that cognise and not the organisation. This study is conceptually based upon the use of

multilevel research, using both the hotels (organisations) and their individual staff

members (employees). Whilst it is both academically interesting and of potential value

in a management sense to study organisational climate in its own right, the position

taken here is that the explanatory power is greatly enhanced when it can be used to

predict and interpret organisational performance. Therefore, the selection of the hotels

was crucially important not only for sampling reasons but also to allow access to a large

number of employees that are required for any organisational climate study.

4.5.2 Hotel profile and hotel managers questionnaire

The main purpose of these instruments was to gain performance data from the

various hotels that would enable the researcher to establish some key performance

indicator that could be related to organisational climate. The instruments sought several

categories of information that included operational, financial and marketing statistics

plus organisational structure and external factors. In order to design the instruments,

input from the expert panel of 6 hotel executives was used.

The �Hotel Profile� - After initial discussions it became clear that to access the

last audited accounts of each property would be extremely problematic because in the

view of the expert panel there would an unwillingness of hotel general managers to

release this information. Secondly, there would be difficulty getting corporate approval

for properties that belonged to large chains.

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It was agreed by the expert panel that the information needed to be of a

generally less sensitive nature and the sort of statistical information that general

managers were giving out on a more routine basis to various federal, state and local

authorities. In essence the information was restricted to room occupancy, average daily

room rate (these 2 statistics are required to calculate REVPAR), standard room rates,

business and revenue mix, staffing statistics and organisational structures. The general

manager or financial controller should be asked to fill in the information requested. The

hotel profile instrument is presented in Appendix B.

The �Hotel Managers Questionnaire� - This replicated the demographic

information that was to be gathered in the main organisational climate instrument to be

given to the employees. None of this information was of concern to the expert panel.

The second section requested some financial performance indicators. It was felt that this

information should be requested on the basis of budget performance on a five point

Likert type scale ranging from 1 - under budget to 5 - well above budget. This would

give detailed indicators on how each hotel was operating but without giving the actual

figures. The format was also followed for operational and customer satisfaction. The

full instrument is presented in Appendix C. Of the expert panel of six executives from

four and five star hotels only three took part in the study.

In addition to the usual demographics of gender and age it was of particular

interest to see what effect education level, length of service within the hotel, length of

time in the job, gross salary, employment status, hours worked, training interval, and

functional area of individuals had upon organisational climate. The above demographic

categories are used in the structural model A as exogenous variables that affect

aggregate organisational climate .

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4.6 Perceptions of customer satisfaction measure

The issue of how to measure the dependent variable customer satisfaction posed

a particular problem of considerable concern. Academic analysis of the literature on

customer satisfaction within the hotel industry brought forth an amazing lack of

empirical data. Most data were based upon qualitative approaches or extremely small

sample sizes. The approach to this issue, was the use of an expert panel as advocated by

Archer (1987), Elkin & Roberts (1987) and Moeller & Shafer (1987) as a method of

assessing how this might be measured. The question of how to measure customer

satisfaction was put to the expert panel all of whom said that they scrutinised the guest

comment cards but they also readily agreed that these represented approximately only

4% of their customers. None of the expert panel used, in their hotels, any other means of

systematically testing their customers� satisfaction. All the hotel managers agreed that

the most reliable method was the feedback obtained by their staff that was then fed back

to the management team.

Lewis and Nightingale (1991) commented that hotel companies have difficulty

in measuring customer satisfaction and, in spite of the inefficiency of comment cards,

many still rely upon them. However, they also make the point that Marriott regularly

surveys its customers randomly and chains like Sheraton are always looking at how the

room comment cards can be improved. Francese (1993) highlighted the fact that hotels

have built up an entrenched bureaucracy and bottom line thinking that often stifles the

employees intuitively providing responsive customer service which, as Parasuraman,

Zeithaml and Berry (1985) have shown, is the key to service quality customer

satisfaction.

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As described in Chapter 2, Schneider and Bowen (1985) empirically

demonstrated that customers and employees share perceptions and attitudes. It is

therefore appropriate to use the employee perceptions of customer satisfaction as a

reasonable measure of organisational performance in regard to customer satisfaction.

Additional to the above, cited links between employee perceptions, customer

service and satisfaction, the recent work by Testra, Skaruppa & Pietrzak (1998) used the

Bagozzi (1992) framework in a study of the phenomenon in cruise line staff. This study

used self-reported perceptions of job satisfaction and service intentions that were

compared to customer satisfaction measured through structural equation modelling.

They found that there was an empirically verifiable relationship between the constructs

and that job satisfaction directly related to customer satisfaction.

The above approach of employees reporting of customer satisfaction has been

adopted as one of the research methodologies used in the current study.

4.7 Organisational performance � Revenue per available room (REVPAR)

Revenue per available room (REVPAR) has been selected as the prime indicator

of a hotel�s performance because it combines 2 of the key performance indicators, that

of occupancy percentage and average daily room rate. Figures on occupancy and room

rates are collected and published by the Australian Bureau of Statistics (ABS) and are

also disseminated by the major tourism bodies such as Tourism Queensland and the

TFC. It is indicative of their importance to the industry in monitoring its performance

that both these measures are collected and published by the ABS and then further

published by main tourism bodies throughout Australia.

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4.7.1 Occupancy percentage

The occupancy percentage is the percentage of the total rooms let for any given

period. The ABS figures are the aggregate performance of all hotels in a particular

category � licensed hotels with facilities, within the region. This category covers all the

major residential 3 to 5 star hotels and immediately provides a benchmark for hotel

operators and managers as to how they are performing against the average for their

particular area. It also can be used in conjunction with previous data to indicate the

market conditions that have changed within the defined area and identify any specific

trends. Many researchers such as Morey & Ditman (1995), Morey (1998) and Vallen &

Vallen (1991) have all shown the relationship between occupancy and profitability; the

higher the occupancy, the higher the hotel�s profitability. It is the �short-hand� used by

hotel managers to judge how they are performing. Logically, if the hotel rooms are full

then the hotel is gaining high revenue and the potential for high profits exists. During

the data collection period for the survey, the 3 areas of Brisbane, Gold Coast and

Sunshine Coast recorded occupancy percentages of 63%, 64% and 57%, respectively,

for the December 1997 quarter, and 64%, 61% and 59.6%, respectively, for the March

1998 quarter (QTTC, 1998).

4.7.2 Average daily room rate

Average daily room rate (ADRR) is the amount of money a hotel receives for

the letting of the rooms for a particular period divided by the number of rooms let. The

ABS figures are the aggregate performance of all hotels in a particular category �

licensed hotels with facilities within the region. This category covers all the major

residential three to five star hotels and provides a benchmark for hotel operators and

managers on performance. It also gives an indication of the prevailing market

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conditions within the defined area. The amount of money a hotel can achieve for each of

its rooms has a direct effect upon its profitability. Apart from the logic of such a

statement it has also been the subject of study by many theorists such as Morey &

Ditman (1995), Morey (1998) and Vallen & Vallen (1991).

However, the measure of a hotel�s performance is a more complicated issue than

that of occupancy percentage and the ADRR. A hotel�s performance affected by a range

of other critical operational decisions and market mix. Hotels have published rates for

differing types of rooms, e.g., suites are more expensive than standard twin rooms. They

also have different rates for various types of business or market mix. The corporate

business executive with an account at the hotel would normally receive a low rate

because of the frequency of visits, whereas a casual visitor just travelling through the

area who arrives without a reservation is likely to pay considerably more for the

equivalent room. Multiple permutations are used in the setting of a room rate and a full

explanation is not appropriate for this study. However, it can been seen when business

and market mix is overlaid onto room types and the standard of amenities offered by

particular properties, how complex the issue of average daily room rates is.

During the period of the data collection for this survey, Brisbane, Gold Coast

and the Sunshine Coast recorded an average daily room rate of $97, $110 and $120

respectively for the December 1997 quarter and $113.60, $127.80 and $135.30

respectively for the March 1998 quarter (QTTC, 1998). It should be noted that the

upward movement of all rates in the March 1998 quarter reflects the peak holiday

season trading when all rates are high, and any annual increase would have occurred

from January 1998. These are yet 2 more factors that need to be taken into account

when assessing ADRR.

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4.7.3 Revenue per Available Room (REVPAR)

The use of average daily room rate (ADDR) multiplied with the occupancy

percentage of the rooms produces figure that is called REVPAR. REVPAR represents a

complex figure combining both elements and is commonly used as one of the main

performance indicators for the worldwide hotel industry. Whilst it is possible to use

either ADDR or Occupancy singularly as points of reference for operating and financial

performance, the combined figure gives a more refined measure. The hotel bedroom is a

very perishable product in terms of its letting ability. Once a hotel bedroom is not let for

a night that potential revenue can never be recovered, which is why occupancy is so

critical to performance. However, most hotel managers worry about letting rooms too

cheaply just to fill capacity, a point was confirmed by the expert panel. Once a hotel is

known for discounting, this creates continual downward pressure on their rates. The

general travel industry, such as, inbound and other travel agents and business groups all

expect to be able to negotiate for low rates. The impact can be very severe on the

ADRR.

Therefore, the combination of occupancy and ADRR in REVPAR does provide

a powerful performance indicator as far as rooms are concerned. A key element of

REVPAR is that it is able to truly represent a hotel�s performance, whether the

marketing strategy is following the occupancy at any cost (profitless volume approach)

or whether the hotel is holding out for a high room rate at the expense of occupancy.

4.8 Pilot and pre-testing procedure

Three instruments were to be used in the research study. As previously

examined the main survey instrument for organisational climate was derived from 2

previous major applications of the instrument from its originators Jones and James

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(1979) and one of its subsequent applications by Ryder and Southey (1990). The main

hotel performance instrument had been designed in conjunction with the expert panel.

The final instrument, aimed at managers only, that required basic demographic,

operational and budget performance data, was also designed in conjunction with the

expert panel.

A range of pre-testing procedures were completed with the main organisational

climate instrument because of the shortening of its length and the minor modification of

wording to make it specific to the hotel context. Initially the organisational climate

instrument was given to small tutorial groups of 15 to 20 third year undergraduate, hotel

management students to complete. The main purpose was to ascertain the time scale

required for completion and assess whether the modification to the wording was fully

understood. Third year hotel management undergraduates were used because all

students had gained work experience within the industry and they were working

currently in a range of casual and part-time positions. This, therefore, provided a very

suitable setting for some pre-testing. Additionally, approximately 30 % of the groups

comprised overseas students, whose first language was not English, that provided an

opportunity to test whether any of the item wording was ambiguous.

The students were not pre-briefed except to ask for their co-operation, and were

asked to assume they were filling in the questionnaire at the request of their supervisor

at work. Students who were not currently working were excluded. They were asked to

follow the directions for the completion of the instrument as given by the introduction

and take whatever time they need to complete it. The students took between 15 and 20

minutes to complete the questionnaire. After all students had finished, they were asked

if there were any difficulties in completion or understanding the questions. Student

comments were recorded. This process was repeated for six tutorial groups.

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An analysis of comments was undertaken and it showed that the instructions

needed slight modification. Although individual comments were made about certain

item wording there was no discernible pattern on any particular item that might indicate

it needed re-wording.

After the re-wording of the instructions, two hotels were approached to

undertake the pre-testing on hotel employees of the main organisational climate

instrument. This was done by using groups of staff varying between four and six from

the food and beverage, rooms, and back of house departments. As with the student pre-

testing, all the staff were thanked for their co-operation and asked to follow the

instructions and take as much time as they required to complete the questionnaire. The

groups all completed the questionnaire within 22 minutes with the fastest time being 14

minutes. All groups were asked for feedback and a number of comments were made

about particular items and their wording; comments such as �a little confusing� or �I

wasn�t quite sure what it was asking�. The process of evaluating all the comments to see

if any pattern emerged that required individual items to be re-worded was followed.

There was no discernible pattern to the staff comments, indicating that the items were

generally well understood. It should be noted that each group was randomly selected, on

the day, by the department head.

The whole pre-testing process in the hotels from greeting to getting feedback

took no more than 40 minutes to complete. It was established that the instrument

generally took under 20 minutes to complete and it was only a very small number of

hotel staff that took the extra 2 minutes. All the questionnaires were checked to see

whether answers showed the expected spread of responses, not all low, middle or high

which might indicate the respondents were not discriminating in their answers.

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It can, therefore, be said that the pre-test process enabled improvements to be

made in the instructions and, when this was completed and used on the hotel staff

sample, the instrument presented no problems for the staff to complete within a fairly

small time frame. The time the questionnaire took individual employees to complete

was critical, as the expert panel were of the view that a industry would not co-operate if

the instrument was too long.

4.9 Administration of climate questionnaire

The 70-item organisational climate questionnaire formed part one of the

omnibus survey. Part 2 consisted of demographic details and background of the

respondents and their perceptions of operational and customer satisfaction. Attention

was given to the readability and layout, with the typeface being �Times New Roman� in

a minimum font of 12-point. All answers either required a number to be circled, on a

Likert type scale, or a box to be ticked. One minor exception was included on the last

question that asked about which department they worked, where it allowed the

respondents to write in a department if theirs was not listed.

Each hotel was assigned a code number that was incorporated into the survey

instrument for ease of identification and tracking purposes. All questionnaires were

delivered by hand to each hotel at least one week prior the date of the study.

Additionally, sealed boxes with slots to take the returned questionnaires were provided

to each HRM department to facilitate collection. An initial step was to ascertain the

numbers of staff in each hotel, the human resource departments supplied the

information. It had been agreed that each HRM department would take the

responsibility of distributing the climate questionnaire within their property to

individual heads of departments. HRM departments were also responsible for briefing

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the department heads on how it should be distributed to employees. Department heads

were aware the survey had the support of senior management as it had been discussed at

the previous week�s departmental heads meeting. The department heads would actually

distribute the questionnaire at the time the weekly wages slips were given out and

simply ask their staff for co-operation in its completion. The staff where told to return it

at their earliest convenience within 3 days.

Each questionnaire was given out with a short introductory letter together with

concise instructions on how it should be completed, and a return addressed envelope.

Employees were told that they had the option of returning the sealed envelope to HRM

or directly to the university. It should be noted that only the employees present on the

day or the next day were given the questionnaires. Therefore employees that were away

for the two days because of roster days off, holidays, part-time employment or casual

employment were not included. Whilst this did reduce the overall numbers it was seen

as a much more manageable process by the hotels that took part.

Less than 10 % of the total response from the employees were returned directly

to the university. Arrangements were made to collect all the returned questionnaires

within seven working days of distribution. With the exception of one hotel with a large

number of employees that returned 61 completed questionnaires after the collection

period there were a very small number forwarded on by the hotels that had been handed

in late. All of the 14 hotels participating selected which week it was appropriate for

them to distribute the surveys because of their individual business commitments. This

process was completed within a three-month time frame.

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4.10 Data collection and sorting procedures

These procedures have, in the main, been previously discussed in the above

headings but it is relevant to list the chronology of events that were followed.

The questionnaires were arranged with the main organisational climate 70 item

instrument being completed first and this was then followed by both the demographic

and performance indicator questions. Oppenheim (1986) and Sekaran (1992) suggested

this format as when the respondent reaches the end of the questionnaire they are likely

to be convinced of the genuineness of the survey.

All the questionnaires were personally collected when they were completed.

This provided an opportunity to discuss with the HRM departments how the process of

distribution had gone. Additionally, informal feedback was also obtained on how the

staff had reacted. No significant problems were reported and the most common reaction

was that the HRM departments thought that the response rate was very good for such a

complicated instrument.

The total number of questionnaires delivered to each hotel was checked with the

completed number of returns and the returned non-distributed ones. These were

deducted from the delivered total so that the completion rate could be computed. All

hotels were given a code and thus each batch was kept completely separate and the data

was entered for each hotel batch by batch for processing on an SPSS computer package.

A standardisation procedure was required on one question from the

questionnaires. As each hotel was allowed to use its own department names in order to

facilitate the reporting back of individual departmental organisational climate for the

hotels, the number of departments varied from a minimum of 8 to a maximum of 20. It

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was decided that these should be collapsed into consolidated 6-department structure for

the main analysis after the individual hotel reports had been produced.

All data were scanned to ensure that no questionnaire returns showed any

patterns of regularity that might indicate the respondents were not discriminating in

their answers to the 70 item organisational climate instrument. Only six were discarded

because of this possible effect. The questionnaire was encoded to facilitate the entering

and processing the data through the SPSS computer software package.

Chapter 5 reports descriptive and simple statistical analyses of the hotel general

operating statistics and employee demographic data.

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5.0 Hotel General Operating Statistics and Staff Demographic Data

5.1 Introduction

This chapter will present the initial analysis of the data collected in this study.

Whilst the prime focus in the chapter will be on a descriptive analysis of both the

operating statistics of the 14 hotels and the demographic profile of their workforce, it

will be supported by some simple inferential statistical analyses. The combination of a

descriptive analysis with inferential statistics is a common procedure used by

researchers when they are trying to interpret individual functions and behaviours

(Ghauri, Grenhaug and Kristianslund, 1995).

5.2 Analytical procedures

The data gathered in this study fall into 2 broad categories. The first, uses data

for which each data point represents a single value for each of the 14 hotels (hereinafter

referred to as �Hotel Level Data�, e.g., the Rack Rate). With a sample size of only 14,

the analysis of data is limited to descriptive and simple inferential statistical analyses.

The second category uses data for which each data point represents a value for an

individual staff member of a particular hotel (hereinafter referred to as �Staff Level

Data�, e.g., an individual employee�s age). Data may of course be aggregated to

produce, for example, the mean value for a variable of employees within each of the

hotels and so provide new aggregate variables that would then belong to the �Hotel

Level Data� category (e.g., mean age of employees within each hotel). Given the large

sample size of individual employees participating in this study, variables representing

data gathered in the Staff Level Data category may also be subjected to complex

multivariate inferential statistical analysis and structural equation modelling procedures

that will be addressed in subsequent chapters.

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The first part of this chapter reports Hotel Level Data for 14 hotels in South East

Queensland. This section will concentrate upon demographic data, general operational

statistics and ranking of hotels by their REVPAR performance. Whilst REVPAR is a

key performance indicator it must be interpreted in the context of other market

information such as the business mix which is principally concerned with the types of

markets the hotel attracts. As important as the business and revenue mix are, various

other factors need to be used in an interpretative analysis of a hotel�s operation. In this

research, data were also collected on employment statistics such as employee turnover

and the wages-to-revenue ratio to provide a more inclusive set of data from which to

analyses for each hotel�s operation and REVPAR.

In the second part of this chapter, Staff Level Data are reported. For both

employees and managers, the results of key individual demographic data are given

including gender, age profile, educational level, organisational tenure, job tenure, gross

salary, mode of employment, hours worked, training frequency and training needs. In

later chapters causal models will be evaluated that incorporate demographic variables

presented in this chapter. For these demographic variables to be useful as predictors of

outcomes such as the variation in REVPAR between hotels, the staff demographic

variables must not only vary between individuals across the whole sample, but must

also (when used to produce aggregate variables) vary between the hotels.

For example, if each hotel had roughly the same mix of staff, then, across the

whole sample, variables such as age, gender, years of education, etc., would vary from

individual to individual, but aggregate scores on these variables would not vary from

hotel to hotel. If these aggregate scores did not vary between hotels, then these variables

would not be useful in providing an explanation of the variation in REVPAR or

Organisational Climate between hotels. For this reason, in the second part of this

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chapter, aggregate scores on Staff Level Data are presented and simple inferential

statistical comparisons are made to examine whether these demographic variables vary

across the hotels in our sample.

The data have been encoded and analysed using SPSS software (SPSS Inc.,

1998). In chapters 6 and 7 more complex multivariate inferential and structural equation

modelling analyses will be presented.

5.3 Hotel level data

Firstly, within this section it is appropriate to provide some detail on the

individual hotels that took part in the survey. Whilst some preliminary analysis of the

hotels was undertaken in Chapter 3, principally to justify their selection for the sample,

it did not provide any detail of their operational characteristics. In Tables 5.3.1 to 5.3.4 a

summary is provided of the major characteristics and operational data of the hotels in

the sample. These data provide a background for each hotel�s climate and is necessary

information in order to be able to interpret each hotel�s climate score within its own

business context. REVPAR has been selected as the main measure of a hotel�s

performance in order to test (in later chapters) the hypothesis that a good organisational

climate can predict improved organisational performance. Table 5.3.1 sets out the

overall profile of the 14 participating hotels that were divided into four size groups:

100-199, 200-299, 300-399 and 400+ rooms, and that the RACQ rating was between

four and five stars.

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Table 5.3.1 Hotel Operational Statistics

REVPARRank

HotelCode

RoomNos.

RACQStars

RackRate $

ADRR$

Occup.%

REVPAR$

1 SC � 2 100-199 4.5 344.00 216.25 70.10 151.59

2 B - 9 100-199 5 270.00 166.21 74.70 124.16

3 GC � 1 400+ 4.5 170.00 129.50 74.73 96.77

4 GC � 3 300-399 5 280.00 132.01 68.00 89.76

5 B - 6 200-299 4 190.00 107.00 80.50 86.13

6 GC � 11 300-399 5 215.00 125.50 62.30 78.19

7 GC � 4 400+ 4.5 215.00 110.01 71.00 78.11

8 SC � 14 300-399 4 265.00 120.50 64.20 77.36

9 B - 8 100-199 4.5 180.00 102.86 72.60 74.68

10 B - 13 400+ 4.5 279.00 109.81 66.70 73.24

11 GC � 5 300-399 4.5 300.00 120.50 60.01 72.42

12 SC � 10 200-299 4 220.00 108.86 59.80 65.10

13 B - 7 300-399 4.5 200.00 121.86 52.23 63.29

14 GC � 12 200-299 4 225.00 88.80 70.10 62.25

Means 239.50 125.69 67.64 85.22GC = Gold Coast, B = Brisbane, SC = Sunshine Coast

The standard published tariff (Rack Rate) when compared to the average daily

room rate (ADRR) shows that there is little relationship except that ADRR is always

substantially less, with a mean across the sample showing it at $125.90 or 52.48% of the

quoted rack rate.

Table 5.3.1 showed quite large differences between the published Rack Rates

and ADRR for each of the hotels in this sample. The question must be asked �why

publish such a rate�? It is obviously an ambit claim but it does provide a starting point

that hotel marketing executives can use to negotiate the real rates that they are likely to

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achieve. Occasionally some guests will be charged this rate if demand exceeds supply at

particular times. The rack rate also serves other purposes such as positioning the hotel in

the market place and to some more naïve guests it can be used as the basis to offer

discounts which attracts their business.

For the purposes of this research, how the hotel performs with respect to its

rooms will be judged by its ADRR and occupancy percentage which when combined

produces REVPAR (Table 5.3.1). There are 2 hotels that stand out in terms of ADRR

(hotels 2 and 9) and when their ADRR is combined with their occupancy it produces the

2 best REVPAR figures of $151.59 and $124.16 respectively. The third place in terms

of REVPAR is $96.77 (hotel 1) with 2 other hotels (3 and 6) in the mid-to-high $80

range. The remaining 9 hotels REVPAR was less than $80, with the poorest

performance at $62.25 (hotel 12).

Occupancy percentages for all properties are regularly collected then aggregated

for regions or States and widely disseminated through government and state based

tourism bodies. Occupancy percentage information is the most widely used statistic

upon which to judge the health of the hotel industry. It is certainly true that a good level

of occupancy is required before a hotel can perform well in financial terms, but there is

also the situation were occupancy at any cost is not appropriate. The 2 lowest REVPAR

ranked hotels (hotels 7 and 12) have vastly differing occupancy percentages, 52.23%

and 70.10% respectively. Hotel 7 has retained a very respectable ADRR but at the cost

of occupancy, whereas hotel 12 has done the opposite by achieving good occupancy but

slashing its room rate, with it being the lowest of the sample by a considerable margin.

Table 5.3.2 details another element that feeds into the ADRR, that is, the mix of

market segments of the total business. These market segments are broken into a number

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of categories. The term FIT (free independent traveller) refers to a guest who does not

pre book but turns up at the hotel seeking accommodation and thus is most likely to pay

the full rack rate. Conference delegates are staying in the hotel and attending a

conference either in-house or in the area. Whilst the rate for the conference business is

generally one of the lowest, it has the advantage that the guests normally stay for

reasonable periods of time, viz., 5.6 nights for international delegates, 4.3 nights for

interstate delegates and 2.6 nights for Queensland delegates (QTTC, 1997).

Tour group business is normally the lowest rate (with the possible exception of

aircrew). It is based upon volume and repeatability, and normally subject to yearly

negotiation. These groups can be both domestic and inbound tourists but within the

sample hotels in this study the predominance is mainly inbound Asian groups.

Corporate business is very much dependent upon the location of the hotel. It can

be very high yielding because executives tend to want superior rooms. The hotels in this

sample are all in the price range that would suggest senior executives rather than the

lower level corporate employees. The one exception is the aircrew market whose

business is normally confined to major cities with airports - Brisbane and Coolangatta in

this sample. Although there is an airport at Maroochydore on the Sunshine Coast the

level of airline business generated is negligible. For aircrew contracts it is only the

major hotels that are considered by the airlines and they require the hotel manager to

trade off the daily room rate for a substantial number of guaranteed bed-nights on a

daily basis for the length of the contracted period. In general, this is the best room rate

offered by any major hotel and has the capacity to negatively affect the ADRR quite

considerably. Two hotels in the Brisbane sample (hotels 6 & 13) and one on the Gold

Coast (hotel 5) both have large aircrew contracts.

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Table 5.3.2 Rooms Business Mix

HotelCode

REVPARRank

F.I.T.

%

ConferenceDelegates

%

TourGroups

%

Corpor-Ate%

Govern-Ment

%

Leisure

%

SC � 2 1 80.00 12.00 2.00 5.00 1.00

B - 9 2 13.50 1.50 55.50 9.50 20.00

GC - 1 3 44.00 4.60 38.40 1.80 11.20

GC - 3 4 17.50 36.70 25.20 3.20 17.40

B - 6 5 8.00 5.00 8.00 54.00 7.00 18.00

GC - 11 6 8.00 12.00 51.00 6.00 5.00 18.00

GC - 4 7 25.00 4.00 71.00

SC � 14 8 67.70 25.90 1.90 4.50

B - 8 9 8.00 10.00 20.00 44.00 8.00 10.00

B - 13 10 11.70 8.30 14.30 50.90 10.50 4.30

GC - 5 11 3.00 10.00 45.00 5.00 1.00 36.00

SC � 10 12 60.80 8.20 23.50 7.50

B - 7 13 5.00 16.00 59.00 11.00 9.00

GC - 12 14 81.60 3.20 15.20

GC = Gold Coast, B = Brisbane, SC = Sunshine Coast

The last 2 categories are government and leisure. Generally the government rate

will be somewhere between the conference and corporate rate, whilst the leisure rate

will be the second highest level of normal rates to the rack rate. These are normally pre-

booked and are often accommodation, holiday or short break packages put together by

the hotel companies.

By examining Table 5.3.2 it is evident that not all the sample hotels are in all

market sectors. Despite detailed discussions with the management of the hotels in the

pre-testing processes to ensure the common usage and understanding of the terminology

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for the market sectors, it is clear that not all hotels use the market segments descriptions

provided above. In particular, hotel 2 and hotel 10 have used the FIT category to

account for both FIT and the leisure segments. As they are both high yielding market

segments it has no major effect on the analysis and just reflects these hotels� individual

reporting system. Hotels 1, 4 and 14 also had similar difficulties with splitting their

market share of FIT and leisure.

It is of interest to note that a high level of FIT business does not guarantee good

REVPAR. Hotels 2 and 10 are at different ends of the REVPAR ranking but both have a

high level of FIT. The hotel that was most reliant upon tour group business also returned

the poorest REVPAR ranking (hotel 14). Unless the hotel was able to negotiate an

extremely advantageous contract in terms of room rate such a high percentage of tour

group business will always lead to a poor performance, judged by REVPAR, despite

achieving a reasonable occupancy 70.10%.

The corporate level of business shown was concentrated, as would be expected,

in the Brisbane hotels (6, 7, 8, 9 and 13). This pattern, to a much lesser extent, was also

repeated for the business generated from government organisations.

Table 5.3.3 displays additional information covering revenue generated by

rooms, food and beverage (F&B) and other sources. It also gives 2 key employment

statistics of employee turnover percentage and wage cost as a percentage of revenue.

The percentage of revenue gained from rooms and F&B reflect the type and style of the

operation. The highest figure for room revenue is hotel 12 with 77.7% and the highest

for F&B is hotel 1 with 60.00%. There is no discernible pattern linking the percentage

of room or F&B revenues with the REVPAR ranking.

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It is worth noting that the hotels which reported significant other revenue, 3, 10

and 14 are all in locations that are either sport or eco-tourism oriented and not in a main

coastal resort or city locations. Their attraction to the customers lies in the very range of

other services in addition to rooms and F&B. To an extent, they tend to offer a more

self-contained package with customers not needing to leave the resort during their stay.

These hotels were also evenly spread in terms of their REVPAR returns.

Table 5.3.3 Hotel Revenue Mix Percentages and Key Employment Percentages

HotelCode

REVPARRank

Rooms%

F&B%

Other%

Employeeturnover%

Wages to Revenue%

SC - 2 1 57.00 36.00 7.00 33.00 29.00

B - 9 2 70.00 26.00 4.00 5.00 32.50

GC - 1 3 26.00 60.00 14.00 not given not given

GC - 3 4 31.40 35.60 33.00 32.30 49.70

B - 6 5 55.00 39.00 6.00 38.00 30.00

GC - 11 6 60.00 34.00 6.00 30.00 34.00

GC - 4 7 75.00 25.00 9.40 39.44

SC - 14 8 45.60 26.20 28.20 38.00 36.60

B - 8 9 59.00 39.00 2.00 not given 34.00

B - 13 10 55.70 41.10 3.20 49.90 37.90

GC - 5 11 49.00 46.00 5.00 not given 38.00

SC - 10 12 29.70 31.40 38.90 103.00 38.30

B - 7 13 71.00 23.00 7.00 30.00 35.00

GC - 12 14 77.70 15.10 7.20 not given 37.07

Means 54.44 34.10 12.42 36.86 36.27GC = Gold Coast, B = Brisbane, SC = Sunshine Coast

In examining the key employment percentages (Table 5.3.3) there are some

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obvious gaps where individual hotels would not release these figures although having

previously agreed to do so. It was always known that these are very sensitive figures

and thus closely guarded (comments from the expert panel). The hotels were asked on 2

separate occasions to provide the figures but declined. A range of reasons given were

�we have had a change in management personnel which has adversely affected this

year�s figure� (anon); �the executive committee has changed its mind� (anon); and �we

have had a policy change� (anon). Three of the hotels that did not supply the

employment turnover percentages were ranked poorly in their REVPAR performance

(hotels 5, 8 & 13). Only hotel 1 of these non-returns was ranked highly in the REVPAR

performance indicator.

In addition to the non-responses, hotels 4 and 9 returned figures of less than 10%

for employee turnover. Hotel 9 has a relatively small full time staff of 55 casual staff

running a city centre property that is quite new and features an all suite accommodation

layout. Upon questioning, the hotel said the figure was based upon their full time staff

and did not include the management and that 5% was correct. It can be seen that this

particular hotel (9) is deriving a high proportion of its revenue from rooms. They have a

policy of trying to maximise the use of casuals in both the housekeeping and restaurant

areas. When hotel 4 was approached about its low staff turnover figure (9.4% - they

employ 130 full time and 88 casual) they also responded by saying it excluded casual

(all hotels excluded casuals in turnover statistics). Judged in the light of the other

returns from similar hotels the figure for these two hotels is very low and some level of

doubt must exist on its accuracy.

The general industry standard levels for employee turnover discussed by the

expert panel was that 20-30% per year would be very good but that 30-40% was more

likely to be the norm. It was noted, however, that this often rose very substantially in

isolated and remote locations. As can be seen in Table 5.3.3, 6 hotels reported their

employee turnover in the range of 30% to 40%. Two hotels were, however, higher by a

large margin, with hotel 10 with 103% and hotel 13 with 49.9%. Hotel 10 is situated in

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an isolated offshore location and its turnover figure is similar to other isolated hotels

but, of course, that does not diminish the problem posed by such a turnover level. It also

performed poorly in the REVPAR rating. Hotel 13 is in a city centre location and a

figure of almost 50% must give rise to concern in terms of operational efficiency and

management effectiveness. This hotel was also poorly rated by REVPAR.

The last column in Table 5.3.3 provides another critical employment statistic,

that of wages cost to total revenue. In any service industry, such as hotels, and

especially the four to five star hotel category, this percentage is often indicative of the

level of profitability. The expected range for such hotels is 30% to 40% (Howarth,

1995). Of course this figure is dependent upon the revenue generated as much as it is on

staff pay levels. There has been a significant shift in the pattern of employment over the

last decade toward higher levels of casual employment in the hotel industry (Timo,

1993). Because of the huge variability in demand, hotel companies are increasingly

seeking to use labour as a variable cost rather than a fixed cost. As stated above, hotel 9

employs 50% of its workforce on a casual basis and produced one of the best wages to

revenue percentages.

Most of the percentages are grouped in the mid-to-high 30�s that indicates an

acceptable range for the categories of hotels. There is one exception, however, with a

return of a 49% wages cost to revenue (hotel 3). This must indicate a major imbalance

in wages cost. In terms of its REVPAR performance it was fourth and it also uses a 50%

casual staffing complement. The other data from this hotel suggests that it is not

performing reasonable well but such a high percentage of wage cost must make the

hotel unprofitable. Subsequent to the collection of the data in this particular hotel

several senior management changes have taken place with some 30 staff redundancies

and a major organisational restructure has occurred which would tend to support the

assumption that they were not trading profitability.

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Table 5.3.4 Comments by hotels on what affected trading conditions

Hotel Code Comments

01 Undertaking room refurbishment02 Undertaking room refurbishment03 Very variable international visitor numbers04 Increase in room supply but no increase in demand05 Slow down in Japanese and Asian markets and opening new 110 room

block06 New hotel and location on South Bank07 Rate drop by major city centre competitors08 Oversupply of Brisbane city rooms and weak commercial growth09 Lack of confidence in marketplace and rate dumping by five star

Brisbane competitors10 Changing market trends and internal organisational cultural change and

restructuring process11 Asian downturn, QTTC ineffectiveness and rate cutting by new hotels12 Downturn in Gold Coast visitor numbers which causes the four and five

star hotels reducing rates which impacts on whole market13 Asia market downturn14 Payroll tax and worker�s compensation payments far too high. Six

retrenchments because of wage increase through enterprise bargain

Table 5.3.4 shows the individual comments made by the managements of the

participating hotels when they were asked what internal/external factors affected their

operations during the year. By far the largest group of comments is related to markets

and marketing - 9 in total. Such concern with the markets and marketing is supported by

leading services marketing theorist�s (Ziethaml, Berry & Parasuraman, 1988) and many

operational management theorists that see the integration of marketing with operations

as the very key to financial success (Slack, Chambers, Harland, Harrison and Johnston,

1995). In simple terms, without attracting a sufficient number of customers, no

operation, especially a hotel can survive.

The second most frequent group of comments were those that related to

competition in rates or rate dumping (the practice of dropping room rates substantially

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to ensure business). This is one of the first management strategies that some hotels seek

to utilise when there are difficult trading conditions. Such a strategy impacts upon

employees and employers because it has the consequence of reducing the wage cost, by

making people redundant, and increasing the use of casuals who are only used when the

business can support their use.

If the larger hotels cut rates they will draw business from the smaller hotels

unless they also match or go lower. Whilst it can be argued that this is �the market�

working at its most efficient, when a large number of jobs and percentage of capital

investment is involved this is often a less than satisfactory mechanism. It is not for this

thesis to discuss the merits or otherwise of open market economic systems but even in

this small sample it is apparent how dramatic the consequences are for employees and

investors when such circumstances occur.

Four of the hotels mentioned upgrades to their accommodation or being �new� in

the market place. Only 2, however, were concerned about new hotels opening and

leading to an over supply situation in hotel rooms. One comment was directed toward

the employment regulations and one to a management and cultural change process. The

hotel that mentioned the management and cultural issues is the hotel with the largest

employee turnover percentage.

Staff level data

Table 5.4.1 shows the response rate for the survey of the 14 hotels. Several

points need to be made with regard to its interpretation. Firstly, the majority of the

questionnaires were distributed to all staff in each hotel regardless of their employment

status on the one day. Only a very small number of hotels used 2 days. The distributed

number of questionnaires does not equate to the total number of employees of all

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employment modes for each hotel but merely the employees that were present at the

time of distribution. A full description of the procedure was provided in chapter 3.

Table 5.4.1 Response rate for the survey of the 14 hotels

Hotel Code Distributed ReturnedResponse

Percentage%

01 1400 565 4002 180 132 7303 590 278 4704 155 56 3605 250 91 3606 160 47 2907 90 47 5208 95 45 4709 72 37 5110 250 87 3411 200 88 4412 70 32 4513 282 198 7014 240 75 31

Total 4034 1778 44

The average response rate achieved was 44% from 4034 questionnaires

distributed over 14 hotels in the survey area. The range of returns saw a spread of

response rates from 29% for hotel 6 through to 73% for hotel 2.

As shown in Table 5.4.2 there is a relatively even split between the genders of

the employees with females at four percentage points ahead of males. However the

picture dramatically changes when the managers� profile is examined, with males

exceeding female managers by 31 %. Whilst this gender spilt may well reflect most

industries, it again reinforces the fact that women are under represented at the senior

levels of four and five star hotels.

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Table 5.4.2 Gender � employees and managers

Employees Frequency %*Male 835 48.0

Female 906 52.0

Total 1792 100.0

ManagersMales 95 65.5

Females 50 34.5

Total 143 100.0

*Percentages were calculated after missing or invalid responses (in this case 2.8%of employees and 0.0% of managers) were excluded.

Table 5.4.3 shows the gender makeup of employees for each of the 14 hotels in

the sample. To examine whether gender mix varied significantly between the hotels a

contingency table analysis was conducted on the data presented in Appendix D.

An important consideration in the calculation of the Chi-square statistic for

contingency table analysis is the magnitude of the expected frequency for each of the

cells (Mason, Lind and Marchal, 1998). The expected frequencies are in the

denominator for the calculation of chi-square. If the expected frequency for any cell is

quite low, the value contributed to the final chi-square value may be disproportionately

large and possibly result in a type I error (inappropriate rejection of the null hypothesis).

When the expected frequency is too low in one or more cells, Mason et. al. (1998)

propose combining several adjacent cells.

Howell, (1997) states that it is still open to question precisely how small is �too

small� for an expected frequency. He reports that the most common convention to deal

with this problem is to require that all expected frequencies should be at least 5. This is

a conservative position that he occasionally violates. Howell reported a computer

simulation conducted by Bradley et al., (1979, cited in Howell, 1997) using tables

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ranging in size from 2 x 2 to 4 x 4. It found that for the sorts of problems that would

actually arise in practice, the actual proportion of type I errors rarely exceeds .06.

Bearing in mind, first, that the number of cells in the tables presented in the following

sections are greater than those used in the simulation, the possibility of a type I error

should be even lower than reported by Bradley et al., (1979, cited in Howell, 1977).

This occurs in an individual cell that will have a smaller impact on the final chi-square

value when there is a larger total number of cells in the analysis. Secondly, when

collapsing adjacent cells for the analysis, this must be conducted in a manner that will

produce a comparison that is meaningful. The following convention was applied. A

contingency table analysis was conducted to establish the number of cells with expected

values less than 5. In analyses where the expected value of one or more cells was less

than 5, adjacent cells were collapsed in a meaningful way and the analysis re-run. If in

this analysis there were still cells with an expected frequency less than 5, adjacent cells

were again collapsed � provided this could be done in a meaningful way � and the

analysis was re-run. This process continued until either all the cells had expected

frequencies that were less than 5, or further collapsing of cells would result in an

inappropriate aggregation of categories.

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Table 5.4.3 Gender of employees for each of the 14 hotels

Male Female Row TotalHotel 1 290

52.7%260

47.3%550

31.6%2 55

45.5%66

54.5%121

7.0%3 128

46.7%146

53.3%274

15.7%4 29

53.7%25

46.3%54

3.1%5 45

51.7%42

48.3%87

5.0%6 20

42.6%27

57.4%47

2.7%7 20

40.8%29

59.2%49

2.8%8 9

19.6%37

80.4%46

2.6%9 15

38.5%24

61.5%39

2.2%10 45

52.3%41

47.7%86

4.9%11 39

43.3%51

56.7%90

5.2%12 14

43.8%18

56.3%32

1.8%13 89

46.4%103

53.6%192

11.0%14 34

50.0%37

50.0%74

4.3%Column

Total835

48.0%906

52.0%1741

100.%

Table 5.4.3 shows a great range in the gender balance between the hotels in the

sample. This ranges from equal number of each gender in hotel 14, to 80.4% female in

hotel 8. The level for females employed are not reflected by males in any hotel. The

greatest proportion of male employees occurred for hotel 4 with 53.7% of the

employees being male. In the contingency table analysis of gender across the 14 hotels,

no cell had an expected frequency less than 5. The minimum expected frequency was

15.35 (Appendix D). The analysis found that gender mix varied significantly across the

14 hotels (χ2(13) = 26.49, p < .05).

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Table 5.4.4 shows the age profile of employees and managers. Whilst there are

very few real insights to be gleaned from the age profile data, these figures reinforce the

fact that the majority of employees are in the categories 15 - 24 and 25 - 34 years of age

and that the split is fairly even between the 2 age groups. It may well be that the

industry should consider recruiting from the older segments of the working population

that seem relatively under represented. An advantage of employing older employees is

that they have a lesser propensity to change jobs frequently.

The management age profiles show that most managers are in the 25 � 34 years

of age. To an extent the large numbers of managers in that bracket does provide

encouragement for young employees who are seeking to move up in the organisation, as

achieving the level of a manager becomes a very attainable career goal. It also reflects

the fact that there is also a very high turnover of managers.

Table 5.4.5 shows the age profile of employees at each of the hotels. An initial

contingency table analysis found 28 cells (33.3%) to have expected frequencies less

than 5, with a minimum expected count of .06 (Appendix D). The age categories were

collapsed from 6 down to 4 (15-24, 25-34, 35-44, and over 45 years). When the analysis

was re-run, one cell (1.8%) had an expected frequency less than 5, and the minimum

expected frequency for this cell was 4.81.

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Table 5.4.4 Age profile of employees and managers

Employees Frequency %*15 � 24 years 528 30.5

25 � 34 603 34.8

35 � 44 340 19.6

45 � 54 212 12.2

55 �64 45 2.6

65 + 3 .2

Total 1792 100.0Managers15 � 24 years 3 2.1

25 � 34 58 40.0

35 � 44 55 37.9

45 � 54 22 15.2

55 � 64 6 4.1

65 + 1 .7

Total 145 100.0

*Percentages were calculated after missing or invalid responses (in this case 3.4%

of employees and 0.0% of managers) were excluded.

The pattern of a young employee profile exists across all of the hotels in this

sample. The largest proportion of employees in the over 45 years category occurs for

hotel 3 with 21.1%. Although a number of other hotels (11 and 12) approach this figure,

the proportion of employees in this category represents only 2.6% of the employees of

hotel 9. This contingency table analysis found the pattern of distribution of employee

ages to significantly vary between hotels (χ2(39) = 87.94, p < .001).

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Table 5.4.5 Age profile of employees for each of the 14 hotels

15-24yrs 25-34yrs 35-44yrs 45+yrs RowTotal

HOTEL 1 176 174 105 90 54532.3% 31.9% 19.3% 16.5% 31.5%

2 43 46 18 10 11736.8% 39.3% 15.4% 8.5% 6.8%

3 64 96 57 58 27523.3% 34.9% 20.7% 21.1% 15.9%

4 13 26 10 5 5424.1% 48.1% 18.5% 9.3% 3.1%

5 39 27 12 9 8744.8% 31.0% 13.8% 10.3% 5.0%

6 16 14 13 3 4634.8% 30.4% 28.3% 6.5% 2.7%

7 20 19 4 5 4841.7% 39.6% 8.3% 10.4% 2.8%

8 14 19 7 7 4729.8% 40.4% 14.9% 14.9% 2.7%

9 8 19 11 1 3920.5% 48.7% 28.2% 2.6% 2.3%

10 29 29 16 13 8733.3% 33.3% 18.4% 14.9% 5.0%

11 17 28 28 17 9018.9% 31.1% 31.1% 18.9% 5.2%

12 11 11 4 6 3234.4% 34.4% 12.5% 18.8% 1.8%

13 66 71 28 25 19034.7% 37.4% 14.7% 13.2% 11.0%

14 12 24 27 11 7416.2% 32.4% 36.5% 14.9% 4.3%

Column 528 603 340 260 1731Total 30.5% 34.8% 19.6% 15.0% 100.0%

Table 5.4.6 shows the educational level of employees and managers. The general

pattern of qualifications for the employees follows a predictable pattern of falling

numbers with increasing qualification level. Over 60% of employees have qualifications

at the post-secondary level and above. This figure certainly supports the view that the

industry workforce is relatively well qualified.

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Table 5.4.6 Educational level of employees and managers

Employees Frequency %*Secondary 601 35.1

Post-secondary 261 15.3

Apprenticeship 233 13.6

Assoc. Dip 279 16.3

Degree 284 16.6

Post Grad. 53 3.1

Total 1792

Managers

Secondary 29 20.3

Post-secondary 14 9.8

Apprent�ship 23 16.1

Assoc. Dip 36 25.2

Degree 33 23.1

Post grad. 8 5.6

Total 145

*Percentages were calculated after missing or invalid responses (in this case 4.5%of employees and 1.4% of managers) were excluded.

The management returns show an encouraging pattern with the largest

percentage of respondents having associate diploma level qualifications, at 24.8%, and

that figure being closely followed by degree qualifications at 22.8%. Only 20% of this

sample had no post secondary qualifications. It was not the aim of this study to examine

qualification patterns in the industry but it would be most interesting to analyse this area

further to see how many managers, and at what levels, have hospitality or related

degrees.

Table 5.4.7 shows the educational level of employees for each of the 14 hotels in

the sample. An initial contingency table analysis found 13 cells (15.5%) to have an

expected frequency less than 5, with the minimum expected frequency to be 0.96

(Appendix D). The education level categories were collapsed from 6 to 5 (secondary,

post-secondary, apprenticeship, associate diploma, degree and postgraduate) and the

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analysis re-run. Two cells were found to have expected frequencies of less than 5. The

minimum expected frequency was 4.20.

This contingency table analysis found Education Level to vary significantly

across the hotels in the sample (χ2(52) = 74.17, p < .05).

Table 5.4.7 Educational level of employees for each of the 14 hotels

Secondary PostSecondary

Apprent-iceship

Ass.Diploma

Degree &Post-

RowTotal

Hotel 1 200 82 81 75 100 53837.2% 15.2% 15.1% 13.9% 18.6% 31.4%

2 51 11 22 19 15 11843.2% 9.3% 18.6% 16.1% 12.7% 6.9%

3 106 39 36 40 50 27139.1% 14.4% 13.3% 14.8% 18.5% 15.8%

4 15 9 9 12 7 5228.8% 17.3% 17.3% 23.1% 13.5% 3.0%

5 34 11 8 15 20 8838.6% 12.5% 9.1% 17.0% 22.7% 5.1%

6 10 4 8 10 13 4522.2% 8.9% 17.8% 22.2% 28.9% 2.6%

7 17 6 5 9 12 4934.7% 12.2% 10.2% 18.4% 24.5% 2.9%

8 21 9 2 5 8 4546.7% 20.0% 4.4% 11.1% 17.8% 2.6%

9 17 5 3 4 10 3943.6% 12.8% 7.7% 10.3% 25.6% 2.3%

10 24 17 8 16 21 8627.9% 19.8% 9.3% 18.6% 24.4% 5.0%

11 26 16 16 17 13 8829.5% 18.2% 18.2% 19.3% 14.8% 5.1%

12 6 9 3 7 6 3119.4% 29.0% 9.7% 22.6% 19.4% 1.8%

13 49 30 17 40 50 18626.3% 16.1% 9.1% 21.5% 26.9% 10.9%

14 25 13 15 10 12 7533.3% 17.3% 20.0% 13.3% 16.0% 4.4%

Column 601 261 233 279 337 1711Total 35.1% 15.3% 13.6% 16.3% 19.7% 100.0%

Table 5.4.8 gives details of the organisational tenure for employees and

managers. Timo (1993) in discussing employee turnover suggested that there were some

benefits that offset the many negatives of high employee turnover. One benefit was the

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introduction of employees with fresh attitudes and approach. There is, however, an

overwhelming preponderance of evidence that employee turnover must be a

considerable cost to hotels, with loss of quality and efficiency in operations, involving

continual re-training and management time. Having 58.5% of the staff being with the

organisation for 2 years or less very much reinforces the relatively high employee

turnover that has become endemic within the Australian hotel industry.

The management figures also display a similar pattern in the first 2 categories,

but there is a notable change in the 6 to 8 years with a much larger number staying on

for that period. It is company policy in many of the major national and international

hotel chains that managers should be rotated quite frequently. Black (personal

communication, 8th April 1999) supports this, he recounted that Sheraton see a 3-year

tenure of senior management being the normal maximum. He further stated that senior

management changes always had a considerable impact upon the staff within a hotel

and they were by no means always beneficial.

Table 5.4.8 Organisational tenure for employees and managers

Employees Frequency %*0 - 2 years 1017 56.53 � 5 403 23.26 � 8 186 10.79 � 11 95 5.512 � 14 27 1.615 � 17 11 .6Total 1792 100.0Managers0 � 2 70 48.33 � 5 36 24.86 � 8 26 17.99 � 11 9 6.212 � 14 4 2.8Total 145 100.0*Percentages were calculated after missing or invalid responses (in this case 3.0%of employees and 0.0% of managers) were excluded.

Table 5.4.9 gives details of the organisational tenure for employees for each of

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the 14 hotels in the sample. An initial contingency table analysis found 40 cells (47.6%)

to have an expected frequency less than 5, with the minimum expected frequency to be

.20 (Appendix D). The organisational tenure categories were collapsed from 6 to 3 (0-2,

3-5, and over 6 years) and the analysis re-run. No cells were found to have expected

frequencies of less than 5. The minimum expected frequency was 5.87.

Although the hotels display large numbers of employees with an organisational

tenure of 2 years or less (with the smallest number falling into this category being hotel

14 with 20% of employees). Four hotels had 20% or more of their employees having

been with the hotel for 6 or more years (hotels 1, 11, 12 and 14, with 27.9%, 23.3%,

25.0% and 20.0%, respectively). This contingency table analysis found organisational

tenure to vary significantly across the hotels in the sample (χ2(26) = 158.88, p < .001).

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Table 5.4.9 Organisational tenure for employees for each of the 14 hotels

0-2yrs 3-5yrs 6+yrs RowTotal

Hotel 1 268 124 152 54449.3% 22.8% 27.9% 31.3%

2 79 23 19 12165.3% 19.0% 15.7% 7.0%

3 152 78 44 27455.5% 28.5% 16.1% 15.8%

4 27 20 8 5549.1% 36.4% 14.5% 3.2%

5 58 22 8 8865.9% 25.0% 9.1% 5.1%

6 40 5 2 4785.1% 10.6% 4.3% 2.7%

7 46 1 2 4993.9% 2.0% 4.1% 2.8%

8 32 9 5 4669.6% 19.6% 10.9% 2.6%

9 38 0 1 3997.4% 0.0% 2.6% 2.2%

10 59 28 0 8767.8% 32.2% 0.0% 5.0%

11 47 22 21 9052.2% 24.4% 23.3% 5.2%

12 19 5 8 3259.4% 15.6% 25.0% 1.8%

13 122 36 34 19263.5% 18.8% 17.7% 11.0%

14 30 30 15 7540.0% 40.0% 20.0% 4.3%

Column 1017 403 319 1739Total 58.5% 23.2% 18.3% 100.0%

Table 5.4.10 focuses upon the length of time employees and managers have been

in particular jobs. The data for the employees, of course, shows that when compared

with the results for organisational tenure, a higher percentage have held their jobs for 2

years or less (65.7%). The percentage of those in the 3 � 5 year category was 20.7%

giving a cumulative percentage for these two-year bands of 86.4%, almost 5% up on the

equivalent organisational tenure figure. This is even stronger confirmation of the

shortness in time that employees are spending in their jobs and the comments made for

organisational tenure above are reinforced. For the hotel industry in this sample these

figures indicate a significant operational impediment.

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When examining the managers� data an even more dramatic picture emerges

with 64.8% and 22.1% for the first 2 categories. To some extent this may be seen as

positive because it opens up career path opportunities for ambitious staff but the quality

and depth of their understanding and experience in dealing with people, both customers

and employees, is very limited. In an industry based upon quality service this presents

problems in consistency of the service offered.

Table 5.4.10 Job tenure for employees and managers

Employees Frequency %*0 - 2 years 1134 65.73 � 5 358 20.76 � 8 122 7.19 � 11 79 4.612 � 14 19 1.115 � 17 14 .8Total 1792 100.0Managers0 - 2 years 94 64.83 � 5 32 22.16 � 8 12 8.39 � 11 2 1.412 � 14 5 3.4Total 145 100.0*Percentages were calculated after missing or invalid responses (in this case 3.7%of employees and 0.0% of managers) were excluded.

Table 5.4.11 gives details of the job tenure for employees for each of the 14

hotels in the sample. An initial contingency table analysis found 43 cells (51.2%) to

have an expected frequency less than 5, with the minimum expected frequency to be .25

(Appendix D). The job tenure categories were collapsed from 6 to 3 (0-2, 3-5, and over

6 years) and the analysis re-run. One cell was found to have an expected frequency of

less than 5, and the minimum expected frequency for this cell was 4.20.

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Table 5.4.11 Job tenure for employees for each of the 14 hotels

Tenure 0-2yrs Tenure 3-5yrs Tenure 6+yrs RowTotal

Hotel 1 312 118 109 53957.9% 21.9% 20.2% 31.2%

2 85 23 12 12070.8% 19.2% 10.0% 7.0%

3 173 70 29 27263.6% 25.7% 10.7% 15.8%

4 29 17 7 5354.7% 32.1% 13.2% 3.1%

5 60 22 5 8769.0% 25.3% 5.7% 5.0%

6 40 4 3 4785.1% 8.5% 6.4% 2.7%

7 46 0 3 4993.9% 0.0% 6.1% 2.8%

8 37 4 5 4680.4% 8.7% 10.9% 2.7%

9 35 1 2 3892.1% 2.6% 5.3% 2.2%

10 66 20 1 8775.9% 23.0% 1.1% 5.0%

11 56 19 15 9062.2% 21.1% 16.7% 5.2%

12 21 3 7 3167.7% 9.7% 22.6% 1.8%

13 137 32 23 19271.4% 16.7% 12.0% 11.1%

14 37 25 13 7549.3% 33.3% 17.3% 4.3%

Column 1134 358 234 1726Total 65.7% 20.7% 13.6% 100.0%

The four hotels with the largest proportion of employees falling into the 6 years

and over tenure category (hotels 1, 11, 12, 14) are the same four hotels with the largest

proportion of their employees falling into the 6 years and over job tenure category

(20.2%, 16.7%, 22.6%, and 17.3%). What is interesting is the range in size of these 4

hotels which range in size from 31 employees (hotel 12) to 539 (hotel 1). This

contingency table analysis found job tenure to vary significantly across the hotels in the

sample (χ2(26) = 110.37, p < .001).

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In table 5.4.12 the reported gross salary for employees and managers is given. At

first examination it confirms that the hotel industry is indeed a low paying employer

with 85.8% of employees earning less than $30,000 per year. These figures, however,

should be read in conjunction the mode of employment (Table 5.4.7) and hours worked

data (Table 4.4.8) to assess how many employees are full-time and how many are part-

time or casual. Notwithstanding the other data it is very notable that an extremely small

percentage of staff earn in excess of $36,000 (5.5%). It is an inescapable conclusion that

the hotels in this study are not paying what would be considered an attractive salary,

especially to a single wage family.

The majority of managers earn less than $50,000, although a few earn $100,000

or more.

Table 5.4.12 Gross salary for employees and managers

Employees $ Frequency %*0 � 5,000 80 4.86 � 10,000 94 5.611 � 15,000 156 9.316 � 20,000 232 13.921 � 25,000 531 31.826 � 30,000 339 20.331 � 35,000 145 8.736 � 40,000 53 3.241 � 45,000 22 1.346 � 50,000 2 .1 50,000 + 15 .9Total 1792 100.0Managers30 � 39,000 42 30.040 � 49,000 42 30.050 � 59,000 26 18.660 � 69,000 13 9.370 � 79,000 5 3.680 � 89,000 3 2.190 � 99,000 1 .7100,000 + 8 5.7Total 145 100.0

*Percentages were calculated after missing or invalid responses (in this case 3.7%

of employees and 3.4% of managers) were excluded.

Table 5.4.13 gives details of the current gross salary for employees for each of

the 14 hotels in the sample. An initial contingency table analysis found 85 cells (55.2%)

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to have an expected frequency less than 5, with the minimum expected frequency to be

.04 (Appendix D). The salary categories were collapsed from 11 to 3 ($0-20,000,

$21,000-30,000, and over $30,000) and the analysis re-run. One cell was found to have

an expected frequency of less than 5, and the minimum expected frequency for that cell

was 4.40. Although displaying an across the board trend of relatively low salaries for

employees, there exists a considerable variation between hotels. For example, within the

$31,000 and greater category, the proportion of staff falling into this category ranges

from 3.2% for hotel 12 to 28.0% for hotel 4. Both of these hotels had relatively small

numbers of employees with 31 and 50 respectively.

Table 5.4.13 Gross salary for employees of the 14 hotels

$0-20,000

$21,000-30,000

over30,000

RowTotal

Hotel 1 173 272 77 52233.1% 52.1% 14.8% 31.3%

2 26 70 21 11722.2% 59.8% 17.9% 7.0%

3 104 128 29 26139.8% 49.0% 11.1% 15.6%

4 11 25 14 5022.0% 50.0% 28.0% 3.0%

5 29 45 7 8135.8% 55.6% 8.6% 4.9%

6 15 24 7 4632.6% 52.2% 15.2% 2.8%

7 14 26 6 4630.4% 56.5% 13.0% 2.8%

8 22 20 2 4450.0% 45.5% 4.5% 2.6%

9 9 25 2 3625.0% 69.4% 5.6% 2.2%

10 33 46 7 8638.4% 53.5% 8.1% 5.2%

11 18 49 21 8820.5% 55.7% 23.9% 5.3%

12 5 25 1 3116.1% 80.6% 3.2% 1.9%

13 73 84 32 18938.6% 44.4% 16.9% 11.3%

14 30 31 11 7241.7% 43.1% 15.3% 4.3%

Column 562 870 237 1669Total 33.7% 52.1% 14.2% 100.0%

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This contingency table analysis found the pattern of gross salary of employees to

vary significantly across the hotels in the sample (χ2(26) = 65.89, p < .001).

Table 5.4.14 shows the data on mode of employment for the hotel employees,

with 60.6% being in full time employment. A relatively low percentage of 10.6% are

part time with casual employment being at 28.8% overall. If these figures are read in

conjunction with the employee salary it certainly confirms that the industry is not

paying its workers highly. This must contribute to the generally high levels of staff

turnover with the associated ramifications for any hotel�s operation and service quality.

All managers were employed on a full time basis.

Table 5.4.14 Mode of employment for employees

Employees Frequency %*

Full time 1041 60.6

Part time 183 10.6

Casual 495 28.8

Total 1792 100.0

*Percentages were calculated after missing or invalid responses (in this case 4.1%)were excluded.

Table 5.4.15 gives details of the mode of employment for employees for each of

the 14 hotels in the sample. An initial contingency table analysis found 4 cells (9.5%) to

have an expected frequency less than 5, with the minimum expected frequency to be

3.30 (Appendix D). The mode of employment categories was collapsed from 3 to 2

(full-time vs part-time and casual) and the analysis re-run. No cells were found to have

expected frequencies of less than 5. The minimum expected frequency was 12.23. A

considerable variation exists between the hotels regarding the proportion of employees

employed full-time, ranging from 50.6% (hotel 10) to 90.3% (Hotel 12). This

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contingency table analysis found the pattern of mode of employment to vary

significantly across the hotels in the sample (χ2(13) = 67.942, p < .001).

Table 5.4.15 Mode of employment for employees for the 14 hotels

Full- time Part-time &Casual

RowTotal

Hotel 1 304 238 54256.1% 43.9% 31.5%

2 71 48 11959.7% 40.3% 6.9%

3 151 117 26856.3% 43.7% 15.6%

4 44 8 5284.6% 15.4% 3.0%

5 48 38 8655.8% 44.2% 5.0%

6 37 9 4680.4% 19.6% 2.7%

7 34 15 4969.4% 30.6% 2.9%

8 28 18 4660.9% 39.1% 2.7%

9 27 10 3773.0% 27.0% 2.2%

10 44 43 8750.6% 49.4% 5.1%

11 74 16 9082.2% 17.8% 5.2%

12 28 3 3190.3% 9.7% 1.8%

13 104 88 19254.2% 45.8% 11.2%

14 47 27 7463.5% 36.5% 4.3%

Column 1041 678 1719Total 60.6% 39.4% 100.0%

Table 5.4.16 shows the hours worked by employees and when this is linked to

both current gross salary and mode of employment it yet again demonstrates the

relatively low pay for the majority of employees. The single largest category is the 36 �

40 hours per week full time employment with 44.3% of the sample. Hours worked in

excess of 40 hours per week were relatively low percentages. No survey was conducted

on hours worked by managers.

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Table 5.4.16 Hours worked by employees

Employees Frequency %*0 � 5 hours 8 .5

6 � 10 33 1.9

11 � 15 38 2.2

16 � 20 98 5.7

21 � 25 115 6.7

26 � 30 166 9.6

31 � 35 134 7.8

36 � 40 765 44.3

41 � 45 200 11.6

46 � 50 88 5.1

50 + 82 4.7

Total 1792 100.0

*Percentages were calculated after missing or invalid responses (in this case 3.6%)were excluded.

Table 5.4.17 gives details of the hours worked for employees for each of the 14

hotels in the sample. An initial contingency table analysis found 87 cells (56.5%) to

have an expected frequency less than 5, with the minimum expected frequency to be

0.15 (Appendix D). The hours worked categories were collapsed from 11 to 4 (0-25, 26-

35, 36-40, and over 40 hours) and the analysis re-run. No cells were found to have

expected frequencies of less than 5. The minimum expected frequency was 5.41.

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Table 5.4.17 Hours worked by employees for the 14 hotels

0-25hrs

26-35hrs

36-40hrs

Over 40hrs

RowTotal

Hotel 1 8115.0%

11220.7%

27150.1%

7714.2%

54131.3%

2 1210.1%

3539.4%

4033.6%

3226.9%

1196.9%

3 6925.3%

3813.9%

10337.7%

6323.1%

27315.8%

4 713.0%

35.6%

2648.1%

1933.3%

543.1%

5 1719.5%

1314.9%

4147.1%

1618.4%

875.0%

6 510.9%

510.9%

1737.0%

1941.3%

462.7%

7 816.3%

714.3%

1938.8%

1530.6%

492.8%

8 919.6%

919.6%

2043.5%

817.4%

462.7%

9 718.9%

38.1%

1951.4%

821.6%

372.1%

10 1011.5%

1213.8%

3843.7%

2731.0%

875.0%

11 1112.2%

88.9%

5257.8%

1921.1%

905.2%

12 39.4%

26.3%

2268.8%

515.6%

321.9%

13 4121.5%

3920.4%

6634.6%

4523.6%

19111.1%

14 1216.0%

1418.7%

3141.3%

1824.0%

754.3%

Column 292 300 765 370 1727Total 16.9% 17.4% 44.3% 21.4% 100.0%

This contingency table analysis found the pattern of hours worked to vary

significantly across the hotels in the sample (χ2(39) = 113.45, p < .001).

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Table 5.4.18 gives information on training frequency (expressed as time since

last training session) for both employees and managers.

Table 5.4.18 Time since last training session for employees and managers

Employees Frequency %*0 � 1 years 1199 72.11 � 2 238 14.32 � 3 99 6.03 � 4 40 2.44 � 5 29 1.75 � 6 11 .76� 7 47 2.8Total 1792 100.0Managers0 � 1 years 105 74.51 � 2 21 14.92 � 3 6 4.33 � 4 2 1.44 � 5 1 .75 � 6 2 1.46 � 7 4 2.8Total 145 100.0*Percentages were calculated after missing or invalid responses (in this case 7.2%of employees and 2.8% of managers) were excluded.

It is of note that 72.1% of employees have attended a training session within a

12-month period. If this figure is considered at face value, it presents a picture of a very

proactive training regime being implemented by the hotels. This view is reinforced

when one sees that within the last 3 years 92.4% have attended training. There is no

doubt that the training of staff in the hotel industry now receives a very high profile. In

Australian hospitality and tourism training under the auspices of TTA, which is a

government appointed ITAB (Industry Training Advisory Board), all training in this

industry sector has received a very high profile and been recognised as world�s best

practice.

These training frequency figures, however, must be set in the context of

employee turnover and job tenure figures which both indicated the high turnover levels

of employees. It is, therefore, a necessity to have this constant training program

established because of the sheer volume turnover of staff numbers. Obviously such a

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high level of training also indicates that considerable resources are being expended not

for improvement but to remain competitive in service levels.

The data for the managers also demonstrate that it is the norm to attend training.

This confirms that there may well be a link to the relatively short organisational and job

tenure figures.

Table 5.4.19 gives details of the time since last training session for employees

for each of the 14 hotels in the sample. An initial contingency table analysis found 59

cells (60.2%) to have an expected frequency less than 5, with the minimum expected

frequency to be 0.21 (Appendix D). The time since last training categories were

collapsed from 7 to 3 and the analysis re-run. 3 cells were found to have expected

frequencies of less than 5. The minimum expected frequency was 4.35.

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Table 5.4.19 Time since last training session for employees for the 14 hotels

0 - 1 yr 1 - 2 yr Over 2years

RowTotal

Hotel 1 36971.4%

7314.1%

7514.5%

51731.1%

2 8271.9%

1614.0%

1614.0%

1176.9%

3 16764.7%

5119.8%

4015.5%

25815.5%

4 4481.5%

713.0%

35.6%

543.2%

5 6677.6%

78.2%

1214.1%

855.1%

6 3884.4%

613.3%

12.2%

452.7%

7 3166.0%

1021.3%

612.8%

472.8%

8 3678.3%

613.0%

48.7%

452.8%

9 3085.7%

38.6%

25.7%

352.1%

10 4962.0%

1012.7%

2025.3%

794.8%

11 7383.0%

66.8%

910.2%

885.3%

12 2990.6%

13.1%

26.3%

321.9%

13 13571.8%

2814.9%

2513.3%

18811.3%

14 5066.7%

1418.7%

1114.7%

754.5%

ColumnTotal

119972.1%

23814.3%

22613.6%

1663100.0%

Although all the hotels demonstrate a high proportion of staff who have attended

a training session within the past 12 months (the lowest being hotel 10, with 62.% of

employees), a considerable range in patterns exist with hotel 6 reporting only 2.2% of

employees to have had their last training session over 2 years ago, to hotel 10 where the

figure was 25.3% of employees. This contingency table analysis found the pattern of

time since last training session to vary significantly across the hotels in the sample

(χ2(26) = 47.69, p < .01).

Table 5.4.20 shows the responses to the question of whether more training is

needed for both employees and managers. The result shows an interesting contrast with

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the employees saying a very firm �No� to more training (61.6%), whereas the managers

had an almost overwhelming response the other way, with 72.5% wanting more

training.

The managers seem to be looking to training as a tool that will assist them in

their ever increasingly complex task of running a hotel.

Table 5.4.20 Employees and managers were asked, do you need training?

Employees Frequency %*

Yes 659 38.4

No 1056 61.6

Total 1792 100.0

Managers

Yes 103 72.5

No 39 27.5

Total 145 100.0

*Percentages were calculated after missing or invalid responses (in this case 4.3%of employees and 2.1% of managers) were excluded.

5.5 Summary and Discussion

In this chapter, first the general operating statistics were reported for the 14

hotels in our sample, and second a comprehensive presentation of the demographic data

from the managers and employees of our sample was reported.

The former data were important in providing a description of the organisations

under study, and reported important indices of hotel performance such as ADRR and

REVPAR. These data were relevant to this study as they provided the context and

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framework within which the collection of the organisational climate information took

place. In order to interpret the organisational climate data with the more sophisticated

statistical techniques this context and framework of the study is important.

Specifically, the Hotel Level Data show hotels 2 and 9 to record the best

REVPAR figures, and that some hotels would appear to concentrate too much on

ADRR at the expense of occupancy e.g. hotel 7. Conversely, others concentrated upon

occupancy at the expense of ADRR, e.g. hotel 6. The lowest REVPARs were recorded

by hotel 7 and 12, with the latter hotel being very reliant upon tour groups in the room

revenue mix. Again, hotels 2 and 9 did well in the high yielding room revenue sectors of

FIT and corporate customers. The employee statistics of turnover and wages to sales

again reinforced that hotel 2 and 9 were performing well.

When managers were asked to make comments on any issues that affected their

performance the majority of comments were directed toward the marketing function. In

an increasingly competitive market, looking for the extra market share is vital in any

hotel�s performance.

In addition to the Hotel Level Data, demographic data were reported that were

gathered from individual staff members within the hotels (Staff Level Data). These data

are important for the current study as, firstly, when aggregated they provide a profile of

the employees across the 14 hotels, secondly, also when aggregated they provide a basis

for comparison of the different hotels, and thirdly, these variables are incorporated into

Structural Model A.

The overall response rate from staff members varied from 29% to 73 % with

average rate of 44% equating to 1778 respondents for the demographic information.

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This has allowed a reasonable level of confidence in the results and their subsequent

analysis in conjunction with Organisational Climate data in later chapters.

As far as gender is concerned, the results show that whilst management is still

heavily biased toward males the actual workforce is much more evenly split with the

bias in favour of females. The workforce is concentrated in the under 35 years of age

range (65.3%) with the managers showing a slightly older profile with 67.9% in the 25

� 44 age bracket.

The educational qualification�s data show 65% of the employees with post-

secondary qualification and 28.7% of managers with undergraduate or post-graduate

qualifications. The training intervals show that the vast majority of both managers and

employees had attended training during the year (74.5% and 72.1% respectively). This

certainly presents a picture of an educated and trained workforce.

However, these figures need to be set against those for organisational tenure,

with employees at 56.5% and managers at 48.3% for less than 2 years service. This data

are compounded by the job tenure figures of less than 2 years (employees 65.7% and

managers 64.8%). It is the major problem for the industry with employee turnover norm

being in the 30-40% range. When the salary levels are examined, with 85.8% of staff

under $30,000 and 94.5% under $35,000, it provides an insight why the industry has

high employee turnover. This is further supported by the mode of employment figures

showing that full-time positions account for 60.6%, casuals 28.8% and part-time 10.6%.

The results in the need for training may well indicate that employees are getting

to the stage that further training could in fact be counter productive to the operation; it is

possible employees are attending as a requirement without any real motivation to learn

or improve. As hotels are spending large sums of money on training a more in depth

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analysis of the type and nature of the training for employees may be warranted. The

completion of the training session feedback form may not be providing any real insights

as to the value of the training.

In addition to qualitative descriptions of the staff member demographic data,

quantitative inferential statistical comparisons were conducted to compare the 14 hotels

in this study on each of the demographic variables recorded from employees. These

were important comparisons for this study. A structural model had been proposed

(Structural Model A) which proposes that these demographic variables affect

Organisational Climate. For these variables to explain variation in Organisational

Climate between the hotels, it is a necessary condition for a variation in these

demographic variables between hotels. In each case it was found that staff across the 14

hotels significantly differed on each of these variables.

The dimensions of organisational climate from the sample will be investigated in

Chapter 6. Chapter 7 will investigate the relationships between REVPAR, employee

demographic variables, and the organisational climate.

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6.0 The dimensions of Organisational Climate in 14 Australian

Hotels

6.1 Introduction

This chapter, firstly, will present a reliability analysis on the participants�

responses to the 70 items of the modified version of the Psychological Climate

Questionnaire (PCQ) used in this study. Secondly, an analysis of the underlying

dimensions of Organisational Climate within the sample will be conducted by applying

a type of Factor Analysis, Principal Components Analysis (PCA), to the participant

responses to the modified PCQ.

6.2 Reliability analysis

6.2.1 Approaches to the estimation of reliability of a test instrument

The term reliability, when referring to a psychological test instrument such as a

questionnaire, has been described as �the attribute of consistency in measurement�

(Gregory, 1996, p. 84). Gregory describes reliability as �best viewed as a continuum

ranging from minimal consistency of measurement (e.g., simple reaction time) to near

perfect reliability of results (e.g., weight)� (p. 84). The simplest method of determining

the reliability of test scores is the administration of the same test on 2 occasions to the

same set of respondents. In this situation, a perfectly reliable test would provide

identical responses for all respondents on both test occasions. In such a situation, the

correlating scores from the first administration with those of the second administration

would find a perfect correlation (r = 1.00). Should the instrument be �perfectly

unreliable� respondents would have different scores on the first administration with

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respect to the second administration, and there would be no correlation between test

scores (r = 0.00).

The administration of this instrument on 2 occasions to the respondents was not

a practical approach given the constraints of the current study.

An approach at estimation of the reliability of an instrument that is presented to

respondents only once is �split-half reliability�. In this approach the test is split into 2

equivalent halves, and the scores for respondents on one half are correlated with those

scores on the second half of the test. The difficulty in this approach is determining

whether the 2 halves are equivalent. Chronbach (1951, cited in Gregory, 1996) proposed

the coefficient alpha (commonly referred to as �Chronbach�s Alpha�) which �may be

thought of as the mean of all possible split-half coefficients. A test with �robust�

reliability would be expected to display a Chronbach Alpha in excess of 0.90.

The reliability of individual items within an instrument may also be examined.

The scores for each individual item within the instrument may be correlated with scores

on the total test (Gregory, 1996). An instrument with a high level of internal consistency

would consist of items that are reasonably homogeneous and which display high item-

total correlations.

6.2.2 Reliability analysis of responses to the 70 item version of the psychological

climate questionnaire

Table 6.1 provides the results of the reliability analysis of the 70 items of the

modified version of the PCQ for the 1401 participants who provided a complete set of

responses. The analysis indicated a particularly high level of reliability with a

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Chronbach�s Alpha of .959. The individual item-total correlation coefficients ranged in

magnitude from .09 to .72.

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Table 6.1 Statistics for each of the 70 items of the modified version of the Psychological Climate Questionnaire entered into the

reliability analysis.

Item Mean S. Dev

ScaleMean ifItemDeleted

ScaleVarianceif ItemDeleted

CorrectedItem-TotalCorr.

Alpha ifDeleted

1 Opportunity for independent thought and action exists in your job. 4.95 1.53 341.40 2783.70 .61 .96 2 Your job requires a high level of skill and training. 5.05 1.57 341.30 2821.82 .36 .96 3 You are required to meet rigid standards of quality in your work. 5.87 1.15 340.48 2829.86 .43 .96 4 Staff members generally trust their supervisors. 5.04 1.50 341.31 2776.08 .67 .96 5 The methods of your work are kept up to date. 5.23 1.31 341.12 2801.23 .58 .96 6 You are required to perform tasks on your job which you consider

relatively unimportant or unnecessary.4.62 1.65 341.73 2830.54 .29 .96

7 You are able to get the money, supplies, equipment, etc. your work groupneeds to do its work well.

4.47 1.70 341.88 2815.12 .37 .96

8 Your supervisor is friendly and easy to approach. 5.69 1.36 340.66 2792.29 .62 .96 9 Your supervisor offers new ideas for job and related problems. 5.08 1.46 341.27 2777.32 .68 .9610 A spirit of cooperation exists in your workgroup. 5.34 1.45 341.01 2783.89 .64 .9611 Your job responsibilities are clearly defined. 5.43 1.40 340.92 2802.17 .54 .9612 Responsibility is assigned so that individuals have authority within their

own area.5.08 1.51 341.27 2790.67 .57 .96

13 Dealing with other people is part of your job. 6.41 .95 339.94 2861.79 .21 .9614 Your supervisor encourages the people who work for him or her to

exchange ideas and opinions.5.17 1.57 341.18 2775.31 .64 .96

15 Staff members generally trust their managers. 4.76 1.62 341.59 2762.40 .70 .9616 You are given advanced information about changes which might affect

you.4.53 1.68 341.82 2773.66 .61 .96

17 The hotel�s policies are consistently applied to all staff members. 4.64 1.73 341.71 2775.12 .58 .9618 You have opportunities to complete the work you start. 5.44 1.20 340.91 2818.99 .50 .9619 Procedures are designed so that resources are used efficiently. 4.92 1.50 341.43 2779.41 .65 .9620 Your supervisor is attentive to what you say. 5.27 1.42 341.08 2777.48 .70 .9621 Your supervisor provides the help you need to schedule your work ahead

of time.5.05 1.41 341.30 2786.42 .64 .96

22 There is friction in your workgroup. 4.37 1.85 341.98 2792.97 .45 .96

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Table 6.1 (continued)

Item Mean S. Dev

ScaleMean ifItemDeleted

ScaleVarianceif ItemDeleted

CorrectedItem-TotalCorr.

Alpha ifDeleted

23 You have opportunities to learn worthwhile skills and knowledge in yourjob.

4.82 1.67 341.53 2774.41 .61 .96

24 New staff members get on-the-job training they need. 5.06 1.59 341.29 2796.06 .51 .9625 There is variety in your job. 4.86 1.76 341.49 2795.00 .46 .9626 Your hours of work are irregular. 3.53 2.16 342.82 2858.96 .09 .9627 Everything in this hotel is checked, individual judgement is not trusted. 4.00 1.59 342.35 2845.33 .21 .9628 Being liked is important in getting a promotion. 2.91 1.64 343.44 2824.39 .33 .9629 You have good information on where you stand and how your

performance is evaluated.4.59 1.57 341.76 2778.84 .62 .96

30 Your superior emphasises high standards of performance. 5.53 1.26 340.82 2806.69 .57 .9631 The ideas and suggestions of staff members are paid attention to. 4.79 1.47 341.57 2769.79 .72 .9632 You have the opportunity to do a number of different things in your job. 5.02 1.59 341.33 2797.23 .50 .9633 Your supervisor sets an example by working hard himself or herself. 5.08 1.69 341.27 2764.76 .66 .9634 A friendly atmosphere prevails among most of the members of your

workgroup.5.68 1.25 340.67 2810.15 .54 .96

35 Hotel politics count in getting a promotion. 3.14 1.58 343.21 2827.54 .32 .9636 People act as though everyone must be watched or they will slacken off. 4.03 1.58 342.32 2809.47 .43 .9637 Supervisors generally know what is going on in their work groups. 5.10 1.38 341.25 2791.42 .62 .9638 You are aware of how well your work group is meeting its objectives. 5.05 1.32 341.30 2799.42 .59 .9639 Your job demands precision. 5.51 1.27 340.84 2825.70 .42 .9640 Members of your work group trust each other. 5.11 1.38 341.24 2801.89 .55 .9641 The hotel has a good image to outsiders. 5.65 1.24 340.70 2816.21 .51 .9642 Working in this hotel is beneficial to your career. 5.34 1.59 341.01 2785.75 .57 .9643 You have opportunities to make full use of your knowledge and skills in

your job.4.97 1.76 341.38 2762.47 .64 .96

44 Communication is hindered by following the chain of command rules. 3.85 1.49 342.50 2814.85 .42 .9645 Your supervisor encourages the people who work for them to work as a

team.5.78 1.25 340.77 2797.66 .64 .96

46 It is possible to get accurate information on the policies and objectives ofthis hotel.

5.23 1.38 341.12 2802.82 .54 .96

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Table 6.1 (continued)

Item Mean S. Dev

ScaleMean ifItemDeleted

ScaleVarianceif ItemDeleted

CorrectedItem-TotalCorr.

Alpha ifDeleted

47 The hotel strives to do a better job than other hotels of the same type. 5.77 1.21 340.59 2812.87 .54 .9648 The hotel emphasises personal growth and development. 5.05 1.53 341.30 2777.39 .65 .9649 Managers keep well informed about the needs and problems of

employees.4.53 1.62 341.82 2761.33 .71 .96

50 Discipline in this hotel is maintained consistently. 4.78 1.49 341.57 2794.02 .56 .9651 Your manager is successful in his dealing with higher levels of

management.5.04 1.43 341.31 2789.46 .61 .96

52 The objectives of the hotel are clearly defined. 5.47 1.22 340.88 2810.66 .56 .9653 There is conflict between your department and other departments of the

hotel.4.35 1.72 342.00 2816.61 .35 .96

54 Your work is important. 6.13 1.08 340.22 2833.20 .43 .9655 The way your work group is organised hinders the efficient conduct of

work.4.41 1.74 341.94 2817.10 .35 .96

56 This hotel is concerned with assisting the local community. 4.77 1.45 341.58 2823.76 .38 .9657 Things in this hotel seem to happen contrary to rules and regulations. 3.97 1.55 342.38 2812.15 .42 .9658 In this hotel the only source of information on important matters is the

grapevine.4.59 1.65 341.76 2790.67 .52 .96

59 In this hotel things are planned so that everyone is getting in each othersway.

5.22 1.32 341.13 2814.47 .48 .96

60 Under most circumstances I would recommend this hotel to a prospectivestaff member.

5.37 1.35 340.98 2800.02 .58 .96

61 Most of the personnel in my department would not want to change toanother department.

4.61 1.60 341.74 2823.46 .34 .96

62 Most members of my work group take pride in their jobs. 5.21 1.35 341.15 2799.01 .58 .9663 Generally there are friendly and co-operative relationships between the

different departments of the hotel.5.16 1.25 341.19 2815.91 .50 .96

64 My department, compared to all other departments would be one of themost productive.

5.15 1.38 341.20 2847.17 .24 .96

65 Excessive rules and regulations interfere with how well I am able to do myjob.

4.60 1.50 341.75 2818.95 .39 .96

66 Overall I think my immediate supervisor is doing a good job. 5.51 1.37 340.84 2789.32 .64 .96

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Table 6.1 (continued)

Item Mean S. Dev

ScaleMean ifItemDeleted

ScaleVarianceif ItemDeleted

CorrectedItem-TotalCorr.

Alpha ifDeleted

67 Compared with other work groups, my work group is under much lesspressure to produce.

5.06 1.56 341.29 2861.54 .12 .96

68 In my job the opportunities to get to know people are limited. 4.95 1.66 341.40 2836.24 .26 .9669 Compared to all other similar work groups in this hotel, my work group

would be the most productive.4.75 1.36 341.64 2862.79 .13 .96

70 Your immediate supervisor is successful in dealing with higher levels ofmanagement.

5.08 1.42 341.27 2790.44 .61 .96

N = 1401Scale Mean = 346.35Scale Variance = 2883.93Alpha = .9594

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6.3 Statistical techniques to identify underlying dimensions in a data matrix of

participant responses

6.3.1 Factor analysis

Factor analysis is a generic name for one of the multivariate techniques that is

used to ascertain the underlying structure in a data matrix (Hair et al., 1995). It analyses

a large number of variables by identifying common and unique sets of variance that are

referred to as dimensions, factors or components. These techniques allow the researcher

to summarise and reduce the data. The process of summary and reduction allows the

data to be described by a much smaller number of variables than the original. Factor

analysis is a technique that considers all the variables simultaneously. It is an

interdependence technique where the variates (factors) are formed to explain the whole

variable set and thus each variate is predicted by all of the others. Factor analysis may

be either exploratory where the data are searched for the underlying structure or

confirmatory. In confirmatory factor analysis the researcher is seeking to confirm a

structure that has already been identified from previous research. There are 2 main

factor analytic methods, Principal Components Analysis (PCA), sometime called just

�component analysis� and Common Factor Analysis.

6.3.2 Principal components analysis

PCA relies upon the total variance to derive the factors with small proportions of

unique variance. This technique is appropriate when the main concern is to predict the

minimum number of factors that are required to account for the maximum proportion of

the variance and when there is an a priori set of variables (Ghauri et al., 1995).

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Whilst PCA provides a parsimonious description of a dataset, like all methods of

factor analysis it suffers from the problem of factor indeterminacy. That is, for any data

set the factor solution is not unique.

6.4 Principal components analyses of organisational climate data

The major thrust of this research was to collect data that provided the basis for

determining organisational climate and its effect upon hotel performance. Jones and

James (1979) conducted a literature search and identified 35 a priori scales, which

could relate to organisational climate. They produced a 145-item questionnaire, which

attempted to measure these 35 scales. Each scale was represented by between 2 and 7

items in their questionnaire. Thirty-five composite variables were produced representing

these theoretical scales and these 35 variables were entered into an exploratory PCA

which produced 6 factors with eigenvalues greater than 1. This questionnaire was

presented to 2 other samples and 5 of the 6 factors were reproduced. On the basis of the

Jones and James study, organisational climate may be seen as composed of 6

dimensions, as illustrated in Figure 6.1

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Figure 6.1 Organisational Climate Model A: The dimensions of Organisational

Climate from the study of Jones and James (1979).

Ryder and Southey (1990), in their study of a public service organisation in

Western Australia, modified the questionnaire of Jones and James. The original

instrument had between 3 and 5 scaled responses. Ryder and Southey used a consistent

7 point anchored scale. Again between 2 and 7 items were used to represent the original

35 a priori scales. An exploratory PCA was again applied to the 35 component

variables with their sample size of only 147. Ten factors were extracted, although only 6

were identified as being interpretable. On the basis of the Ryder and Southey study

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organisational climate may be seen as composed of 6 dimensions, as illustrated in

Figure 6.2.

Figure 6.2 Organisational Climate Model B: The dimensions of Organisational

Climate from the study of Ryder and Southey (1990).

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The current study modifies the questionnaire used by Ryder and Southey which

was based upon the original Jones and James instrument, such that only 2 items are used

to represent each of the 35 original �a priori� components. This reduced the

questionnaire length to 70 items.

6.5 Variables entered into the PCA

In this study a consistent 7 point anchored scale is used across all items of a

modified version of the PCQ. In this respect, the instrument used here is similar to that

used by Ryder and Southey (1990). Ryder and Southey (1990) present an exploratory

PCA of responses of 147 participants to a modified version of the PCQ. In that study

between 2 and 7 items were used to represented the Jones and James original 35 �a

priori� scales and these 35 composite items were entered into their PCA. Given the

present study used only two items to represent each of these 35 �a priori� scales (and so

a precise replication of the either the Jones and James, or the Ryder and Southey PCA is

not possible). Additionally, the substantial sample size of the present study (1,401), it

was decided to conduct the PCA presented here on the 70 individual items of the

modified PCQ used in this study. Further, given the differences in the factors described

by the James and Jones, and the Ryder and Southey studies and the use of individual

items in the current analysis, it was decided it would be more appropriate to conduct an

exploratory, rather than confirmatory, PCA. The PCA, when completed, was followed

by a Varimax rotation.

6.6 Proportion of variance explained by principal components

The PCA followed by a Varimax Rotation extracted 13 components with

eigenvalues greater than 1 (Appendix E). The 13 components accounted for 57.6% of

the total variance (Table 6.2). Given the large number of items entered into this analysis

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it represents a good solution. The number of components expected to be extracted

generally lies in the range of K/3 and K/5, where K represents the number of variables

entered into the analysis (Tabachnick & Fidell, 1996, p. 672).

Table 6.2 Percentage of variance explained by Principal Components with

Eigenvalues greater than 1

Factor % of

Variance

Cumulative

%

1 29.0 29.0

2 4.5 33.5

3 3.6 37.1

4 3.3 40.4

5 2.7 43.1

6 2.5 45.6

7 2.1 47.7

8 2.0 49.6

9 1.7 51.4

10 1.7 53.1

11 1.6 54.6

12 1.5 56.1

13 1.5 57.6

6.7 Rotated principal component loadings

The rotated factor component loadings are presented for items of the modified

PCQ in Table 6.3. For each item, only the �primary� loading is presented (that is the

greatest loading for that item across the factors), and only items with primary loadings

on factors 1 through 7 are included (Appendix E presents both primary and minor

loadings for all items). For comparison purposes, Table 6.3 also includes, for both the

Jones and James, and Ryder and Southey studies, the factor upon which each individual

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item would be assigned on the basis of the loadings of the composite variables used in

the earlier studies.

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Table 6.3 Primary Rotated Component loadings for items of the modified version of the PCQ. Also included for comparison purposes are

the factors upon which those items loaded in the earlier studies of Jones and James (1979) and Ryder and Southey (1990).

Item # Item Loading Jones &James

Ryder &Southey

Factor 1 Leader facilitation and support66 Overall I think my immediate supervisor is doing a good job. .79 3 3 8 Your supervisor is friendly and easy to approach. .76 3 120 Your supervisor is attentive to what you say. .75 3 1 9 Your supervisor offers new ideas for job and related problems. .74 3 133 Your supervisor sets an example by working hard himself or herself. .68 3 170 Your immediate supervisor is successful in dealing with higher levels of management .64 3 121 Your supervisor provides the help you need to schedule your work ahead of time. .64 3 114 Your supervisor encourages the people who work for him or her to exchange ideas and

opinions..63 3 1

45 Your supervisor encourages the people who work for them to work as a team. .60 3 1 4 Staff members generally trust their supervisors. .55 5 131 The ideas and suggestions of staff members are paid attention to. .54 5 137 Supervisors generally know what is going on in their work groups. .53 5 130 Your superior emphasises high standards of performance. .53 3 151 Your manager is successful in his dealing with higher levels of management. .49 3 115 Staff members generally trust their managers. .48 5 129 You have good information on where you stand and how your performance is evaluated. .41 2 138 You are aware of how well your work group is meeting its objectives. .38 2 1

Factor 2 Professional and organisational esprit47 The hotel strives to do a better job than other hotels of the same type. .69 1 448 The hotel emphasises personal growth and development. .66 5 252 The objectives of the hotel are clearly defined. .65 1 441 The hotel has a good image to outsiders. .62 5 246 It is possible to get accurate information on the policies and objectives of this hotel. .61 1 460 Under most circumstances I would recommend this hotel to a prospective staff member. .55 5 256 This hotel is concerned with assisting the local community. .50 5 2

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Table 6.3 (continued)

Item # Item Loading Jones &James

Ryder &Southey

Factor 2 Professional and organisational esprit (continued)42 Working in this hotel is beneficial to your career. .48 5 249 Managers keep well informed about the needs and problems of employees. .48 5 150 Discipline in this hotel is maintained consistently. .46 1 4

Factor 3 Conflict and ambiguity19 Procedures are designed so that resources are used efficiently. .60 1 218 You have opportunities to complete the work you start. .57 5 311 Your job responsibilities are clearly defined. .56 1 2 7 You are able to get the money, supplies, equipment, etc. your work group needs

to do its work well. .54 1 216 You are given advanced information about changes which might affect you. .54 1 617 The hotel�s policies are consistently applied to all staff members. .51 1 4 5 The methods of your work are kept up to date. .49 1 424 New staff members get on-the-job training they need. .46 1 212 Responsibility is assigned so that individuals have authority within their own area. .45 2 2

Factor 4 Regulations, organisation and pressure65 Excessive rules and regulations interfere with how well I am able to do my job. .66 5 355 The way your work group is organised hinders the efficient conduct of work. .66 3 359 In this hotel things are planned so that everyone is getting in each others� way. .65 1 357 Things in this hotel seem to happen contrary to rules and regulations. .59 1 344 Communication is hindered by following chain of command rules. .56 5 158 In this hotel the only source of information on important matters is the grapevine. .55 1 667 Compared with other work groups, my work group is under much less pressure to produce. .46 5 336 People act as though everyone must be watched or they will slacken off. .39 6 4

Factor 5 Job variety, challenge and autonomy25 There is variety in your job. .77 2 232 You have the opportunity to do a number of different things in your job. .76 2 223 You have opportunities to learn worthwhile skills and knowledge in your job. .54 5 2

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Item # Item Loading Jones &James

Ryder &Southey

Factor 5 Job variety, challenge and autonomy (continued)43 You have opportunities to make full use of your knowledge and skills in your job. .46 2 261 Most of the personnel in my department would not want to change to another department. .44 4 2 1 Opportunity for independent thought and action exists in your job. .37 2 2

Factor 6 Workgroup co-operation, friendliness and warmth40 Members of your work group trust each other. .69 4 534 A friendly atmosphere prevails among most of the members of your workgroup. .64 4 522 There is friction in your workgroup. -.55 4 510 A spirit of cooperation exists in your workgroup. .54 4 562 Most members of my work group take pride in their jobs. .50 4 2

Factor 7 Job standards 2 Your job requires a high level of skill and training. .71 2 2 3 You are required to meet rigid standards of quality in your work. .69 6 439 Your job demands precision. .66 6 454 Your work is important. .46 2 4

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6.8 Interpretation of meaning of the principal components

Of the 13 components extracted, 7 were found to be interpretable and related to

those previously described by either Jones and James (1979) or Ryder and Southey

(1990). Table 6.4 shows the 7 factors obtained from the PCA for this study with

corresponding factors from both the Jones and James, and the Ryder and Southey

studies.

Factor 1 accounted for 29% of the variance and included items such as �Overall I

think my immediate supervisor is doing a good job�, and �Your supervisor is attentive to

what you say�. This component was labelled �Leader facilitation and support� and was

judged to be consistent with factor 3 from Jones and James �Leader facilitation and

support� (with 11 of the 17 items loading here on factor 1 representing sub-components

of composite variables loading on this factor in the earlier study). It was also consistent

with factor 1 �Leader facilitation and support� from Ryder and Southey (16 of the 17

items loading here on factor 1 representing sub-components of composite variables

loading on this factor in the earlier study).

Factor 2 accounts for 4.5% of the variance and includes items such as �The hotel

strives to do a better job than other hotels of the same type�, and �The hotel has a good

image to outsiders�. This factor was labelled �Professional and organisational esprit� and

was seen to be consistent with factor 5 from Jones and James �Professional and

organisational esprit� (6 of 10 items loading here on factor 2 representing sub-

components of composite variables loading on this factor in the earlier study). This is a

component that was not identified by Ryder and Southey.

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Table 6.4 Relationship between principal components (Factors) found in this study, and those found by Jones and James

(1979) and Ryder and Southey (1990). The proportion of items falling on the corresponding factor in each of the earlier studies is

also indicated.

Factor Jones and James (1979) Ppn Ryder and Southey (1990) Ppn

F1- Leader facilitation and support F3- Leader facilitation and support 11/17 F1- Leader facilitation and support 16/17

F2- Professional and organisational F5- Professional and organisational 6/10 -

esprit. esprit.

F3- Conflict and ambiguity. F1- Conflict and ambiguity 7/9 -

F4- Regulations, organisation and - F3- Conflict and pressure 5/8

pressure.

F5- Job variety, challenge and F2- Job challenge, importance 4/6 F2- Job variety, challenge and esprit 6/6

autonomy. and variety

F6- Work group co-operation, F4- Workgroup cooperation 5/5 F5- Workgroup reputation, co-operation 4/5

friendliness and warmth. friendliness and warmth. friendliness and warmth.

F7- Job standards F6- Job standards 2/4 F4- Organisational planning openness 3/4

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Factor 3 accounted for 3.6% of the variance and included items such as

�Procedures are designed so that resources are used efficiently�, �Your job

responsibilities are clearly defined�, and �The methods of your work are kept up to

date�. This component was labelled �Conflict and ambiguity� and was seen to be

consistent with factor 1 from Jones and James �Conflict and ambiguity� (7 of the 9 items

loading here on factor 3 representing sub-components of composite variables loading on

that factor in the earlier study).

Factor 4 accounted for 3.3% of the variance, and included such items as

�Excessive rules and regulations interfere with how well I am able to do my job�,

�Things in this hotel seem to happen contrary to rules and regulations�, and �Compared

with other work groups, my work group is under much less pressure to produce�. This

component was labelled �Regulations, organisation and pressure� and appeared to

overlap with that identified by Ryder and Southey as �Conflict and Pressure� (5 of the 8

items loading on factor 4 representing sub-components of composite variables loading

on that factor in the earlier study).

Factor 5 accounted for 2.7% of the variance and included items such as �There is

variety in your job�, and �You have opportunities to learn worthwhile skills and

knowledge in your job�. This component was labelled �Job variety, challenge and

autonomy and was consistent with factor 2 identified by Ryder and Southey �Job

variety, challenge and esprit� (6 of the 6 items loading on factor 5 representing sub-

components of composite variables loading on that factor in the earlier study).

Factor 6 accounted for 2.5% of the variance and included items such as

�Members of your work group trust each other.� and �A friendly atmosphere prevails

among most of the members of your workgroup�. This component was labelled

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�Workgroup co-operation, friendliness and warmth� and was consistent with both Jones

and James factor 4 �Workgroup cooperation friendliness and warmth� (5 out of 5 items),

and factor 5 from Ryder and Southey �Workgroup reputation, co-operation, friendliness

and warmth� (4 out of 5 items).

Factor 7 accounted for 2.1% of the variance and included items such as �Your

job requires a high level of skill and training�, �You are required to meet rigid standards

of quality in your work�, and �Your job demands precision�. This component was

labelled �Job standards�. Despite 3 of the 4 items presented here falling on factor 4 of

Ryder and Southey (�Organisational planning openness�), and although only 2 of the 4

items loading on factor 6 from Jones and James (�Job standards�), the same label was

applied as all of the 4 items falling on this factor in the present study are consistent with

the spirit of the factor definition provided by Jones and James.

6.9 Variation in climate dimensions between hotels

6.9.1 Generating climate dimension sores

The preceding sections of this chapter describe an examination of the instrument

used here to measure organisational climate and its underlying dimensions across the 14

hotels participating in this study. Whilst such investigations are of interest in their own

right, the principal purpose of this study is to examine the relationship between

Organisational Climate and Hotel Performance. To make such comparisons possible, it

is necessary to generate new variables to act as indices of each of the underlying

dimensions, and to provide an overall index of Organisational Climate.

Following a PCA as conducted here, there are a variety of methods that may be

followed to generate new variables. One would be to use the factor scores for each

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participant, and thereby have a score on each factor for each participant. These scores

could then be averaged across employees within each hotel, and thereby provide an

Organisational Climate score for each hotel on each of the underlying dimensions. Such

an approach, however, has the disadvantage that it provides no basis for comparison in

future investigations should the same instrument be applied to other samples (as

equivalent factor scores would not exist).

The approach taken here was as follows. For each of the 7 factors, for each

participant, the arithmetic mean was calculated across all of the PCQ items with their

primary loading on that factor. This created 7 new variables, with each participant

having a score on each variable. An eighth variable was then produced which consisted

of the arithmetic mean of these 7 variables to produce a single Composite Measure of

Organisational Climate. The means were then calculated for each of these new variables

to provide a score for each hotel on each of the 7 underlying Organisational Climate

dimensions, and on the Composite Measure of Organisational Climate. These values are

presented in Table 6.5.

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Table 6.5 Mean scores on climate dimensions and for the Composite Measure

of Organisational Climate across the 14 Hotels in the study.

Hotel F1 F2 F3 F4 F5 F6 F7 Composite

1 4.79 5.04 4.83 3.89 4.58 4.72 5.37 4.75

2 5.36 5.56 5.29 3.31 5.10 5.21 6.00 5.12

3 5.40 5.55 5.19 3.36 5.08 5.15 5.83 5.08

4 5.15 4.96 4.84 3.70 5.08 5.01 5.78 4.93

5 5.17 5.33 4.96 3.63 4.96 4.98 5.63 4.95

6 5.17 5.13 4.87 3.53 4.92 5.05 5.65 4.90

7 5.55 5.54 5.13 3.10 4.83 5.27 5.59 5.00

8 5.36 5.16 5.07 3.05 4.83 5.11 5.74 4.90

9 5.19 5.44 5.10 3.26 4.68 4.89 5.53 4.87

10 5.35 5.13 4.79 3.48 5.25 5.20 5.76 4.99

11 5.50 5.29 5.18 3.25 5.05 5.15 5.76 5.02

12 6.01 5.91 5.86 2.73 5.71 5.32 6.19 5.39

13 5.08 4.74 4.80 3.71 4.71 4.91 5.61 4.80

14 4.90 4.77 4.59 3.61 4.90 4.99 5.68 4.78

6.9.2 Comparison of Climate Dimensions between the 14 Hotels in the Study.

Although more complicated multivariate and structural equation modelling

techniques will be applied in Chapter 7 to the Organisational Climate data, a necessary

condition for an explanation of variation in hotel performance as a function of

Organisational Climate is a variation in Organisational Climate between the hotels. To

establish whether this necessary condition exists, a set of simple univariate statistics was

calculated.

The mean score for each of the underlying dimensions of organisational

climate, and for the Composite Measure of Organisational Climate (Table 6.5), were

compared across the 14 hotels in the study. Given these new variables represented

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orthogonal underlying dimensions, a multivariate analysis of variance was considered

inappropriate due to its assumptions of underlying relationships between the dependent

variables. Consequently, the mean score for each of the underlying climate dimensions

were compared across the 14 hotels using 7 separate one-way Analysis of Variance

(ANOVA). To control for Type I error, as a consequence of the number of comparisons,

using a Bonferroni adjustment, the alpha level was adjusted from .05 to .006. The

results of these analyses are summarized in Table 6.6.

Table 6.6

Summary of results of 7 oneway ANOVA�s. Each ANOVA compared the 14

means of each of the hotels on one of the 7 dimensions of organizational climate.

D.F.Bet.

D.F.within

BetweenSS

Within SS

TotalSS

F Prob.

Leader facilitation andsupport

12 1566 133.42 1578.96 1712.38 11.03 .0000

Professional andorganisational esprit

12 1612 130.89 1377.07 1507.96 12.77 .0000

Conflict andambiguity

12 1626 75.60 1604.27 1679.87 6.39 .0000

Regulations,organisation andpressure

12 1596 133.47 1491.89 1625.35 11.90 .0000

Job variety, challengeand autonomy

12 1632 111.41 2183.47 2294.88 6.94 .0000

Workgroupco-operation,friendliness andwarmth

12 1641 67.59 872.56 940.15 10.59 .0000

Job standards 12 1650 79.78 1441.19 1520.97 7.61 .0000

Composite 12 1367 33.05 496.00 529.00 7.59 .0000

These analyses compared separately for each of the 8 variables (each of the

dimensions of Organisational Climate and the Composite Measure of Organisational

Climate), the mean scores on that variable for each of the 14 hotels in the study. These

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analyses established that significant differences existed between hotels on each of the 7

dimensions of Organisational Climate, and on the Composite Measure or Organisational

Climate (in all cases p < .0001). Consequently it is possible that Organisational Climate

might provide some degree of explanation for differences between hotel performance.

This issue will be addressed in Chapter 7.

6.10 Summary and Discussion

In this chapter, employee responses to an instrument designed to provide

measures of organisational climate in 14 hotels were presented. The instrument used

was a version of the Psychological Climate Questionnaire first presented by Jones and

James (1979). The instrument was modified in 2 important ways, first, following the

study of Ryder and Southey using a consistent 7 point anchored scale for participant

responses. Second, whereas both of the earlier studies had used between 2 and 7 items

to represent 35 �a priori� scales, this study consistently used only 2 items.

Consequently, the instrument used here comprised of only 70 items, rather than the 145

of the original.

A reliability analysis was conducted on the participants� responses. A coefficient

alpha (Chronbach�s) of 0.96 was found. This represents an excellent result and indicates

a high level of internal consistency for the instrument as applied in this study.

Homogeneous tests exhibit high values of the coefficient alpha (Gregory, 1996, p. 96),

whereas heterogeneous tests which �measure more than one trait invariably produce low

values of coefficient alpha�. Such an outcome provides support for the notion of

calculating a single overall index of organisational climate from the version of the PCQ

used in this study.

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An analysis of the item-total correlations for each item in the instrument found

some items to correlate as high as .72 with the total test score. Some items, however,

displayed correlations as low as .09. Such information would be useful in the future

should an even shorter version of the PCQ be developed. It might be decided to remove

items with low item-total correlations, particularly where items do not have significant

loadings on any of the principal components described below. Such an exercise is,

however, beyond the scope of the current investigation.

Applying PCA to the responses of hotel employees to the modified and

simplified form of the PCQ used in this study found 7 underlying dimensions of

Organisational Climate that were interpretable. These 7 dimensions accounted for 48%

of the variance.

Jones and James� analysis of responses from U.S. naval personnel produced a 6

factor solution accounting for 59% of the variance. They labelled their factors �Conflict

and Ambiguity�, �Job Challenge, Importance, and Variety�, �Leader Facilitation and

Support�, �Workgroup Cooperation, Friendliness, and Warmth�, �Professional and

Organisational Esprit�, and �Job Standards�. Jones and James repeated their study using

samples of firemen and health managers to assess the generalisability of their factor

structure in representing Organisational Climate. They replicated the first 5 of their 6

dimensions across their samples.

Ryder and Southey (1990) modified the Jones and James questionnaire to

provide a consistent method of response by participants to each question. These authors

produced a solution accounting for 57% of the variance which extracted 10 factors, of

which 6 were deemed to be interpretable. They labelled their factors as �Leader

Facilitation and Support�, �Job Variety, Challenge and Autonomy�, �Conflict and

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Pressure�, �Organisational Planning Openness�, �Workgroup Reputation, Cooperation,

Friendliness and Warmth�, and �Perceived Equity�.

Although Ryder and Southey concluded �that the major dimensions of the PCQ

are stable and may provide a comparative framework in the study of organisational

climates� (page 49), they provided only one of their dimensions with the same label as

provided by Jones and James.

In the current study, a simplified version of the Ryder and Southey version of

the PCQ was used. The version used a consistent number of items (2) representing each

of the 35 �a priori� scales originally proposed by Jones and James. This contrasts with

both of the earlier studies that used up to 7 items to represent one of these sub-scales.

The PCA presented here produced 7 factors for which labels were proposed; �Leader

facilitation and support�, �Professional and organisational esprit�, �Conflict and

ambiguity�, �Regulations, organisation and pressure�, �Job variety, challenge and

autonomy�, �Workgroup co-operation, friendliness and warmth�, and �Job standards�.

An interesting mix of factors emerged when contrasted with the earlier 2 studies.

Five of the components presented here were interpreted as essentially the same, and

given the same labels, as those presented by Jones and James. �Leader facilitation and

support� (which was also found by Ryder and Southey), �Professional and

organisational esprit�, �Conflict and ambiguity�, �Workgroup co-operation, friendliness

and warmth� and �Job standards�. Of the remaining 2 factors extracted here, �Job

variety, challenge and autonomy� was interpreted as essentially the same, and given the

same label, as factor 2 of Ryder and Southey. The component labeled here as

�Regulations, organisation and pressure� was found to have significant overlap with

�Conflict and Pressure� of Ryder and Southey.

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Although it was identified in all three studies, the factor Leader Facilitation and

Support explained the largest amount of variance in both the current study, and that of

Ryder and Southey. In the original study by Jones and James, this factor accounted for

the third largest amount of variance. This pattern across studies may simply reflect the

existence of a greater variation in leadership within civilian organisations (both private

and public) than would be found within the military sample used by Jones and James.

On the basis of the analysis presented here Organisational Climate within the 14

Australian hotels used in this sample may be considered to be composed of 7 underlying

dimensions (Aggregate Organisational Climate Model C). Each of which has been

described within either of the earlier studies of Jones and James, and Ryder and

Southey. This is illustrated in Figure 6.3.

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Autonomy

Figure 6.3 Organisational Climate Model C: The dimensions of Organisational

Climate of the 14 Hotels participating in the current study.

The PCA presented here produced a lower proportion of variance explained by

the 7 factors for which labels were proposed, than was the case for the original version

of the PCQ presented by Jones and James (1979). Here the 7 dimensions accounted for

48% of the variance whereas Jones and James presented factors accounting for 59% of

the variance. A number of reasons could explain the differences between the 2 studies.

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First, in their original study Jones and James used enlisted U.S. Navy personnel. In the

present study, both full-time (permanent), and casual employees completed the study. It

must be remembered that a PCA is not simply an analysis of the instrument, but also an

analysis of the population responding to the instrument. It is entirely possible that

permanent and casual staff would represent essentially different sub-populations. If this

were true, the presence of the two sub-populations would serve to increase the variance

to be explained, and thereby reduce the proportion of variance explained by the

principal components. Second, this instrument is a simplified version of that originally

presented by Jones and James in which only 70 items were presented compared with

144. Both the original version of the PCQ and the modified version used by Ryder and

Southey, used up to seven items, and never less than two, to represent each of the 35 �a

priori� scales. In this study two items were used to represent each of these �a priori�

scales. The averaging procedure of the earlier study would serve to minimise noise in

the data matrix. Third, given the relatively large size of the sample, the analysis

conducted here was performed on the individual items and not aggregate constructs.

Analysing scores on the individual items (as was done here) would serve to increase the

level of unique variance for each item, and thereby reduce the proportion of variance

that may be explained by common factors.

A similar comparison with the results of Ryder and Southey is difficult. They

report �the solution accounted for 57.4% of variance� (page 48). However, it is not clear

whether they are reporting the variance accounted for by the 10 factors they extracted

with eigenvalues greater than unity (which would be the usual interpretation of their

precise wording), or by the 6 factors they deemed to be interpretable (which is implied,

but not explicitly stated in their results). If it is the former, then the 13 factors extracted

by the analysis reported here accounted for a comparable proportion of variance

(57.6%).

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On the basis of the loadings of items of the PCQ on different principal

components, new variables were produced to provide each participant with a score on

each of the underlying dimensions of Organisational Climate and provide an overall

index of Organisational Climate termed here �Composite Measure of Organisational

Climate�. Simple univariate comparisons were made by calculating the mean scores on

these new variables across employees within each hotel and applying ANOVA to

compare these means across the 14 hotels. Such variation in Organisational Climate

between the hotels leaves open the possibility that Organisational Climate may provide

some explanation of variation between hotels in their financial performance. This issue

will be examined in Chapter 7.

In summary, in this study the employees of 14 hotels completed a version of the

original Jones and James (1979) PCQ. The items were both modified following the

procedures described by Ryder and Southy (1990) so that each item required a

consistent mode of response, and reduced in length from 144 to 70 items. A reliability

analysis demonstrated a high level of internal consistency with a coefficient Alpha

(Chronbach�s) of 0.96. A PCA extracted 7 interpretable components that accounted for

48% of the variance. A comparison with the factors presented by Jones and James, and

Ryder and Southey found 5 of the 7 to be consistent with factors extracted in the former

study, and the remaining 2 to be consistent with factors extracted in the latter study.

Univariate analyses demonstrated that each of the dimensions of Organisational Climate

varied significantly across the 14 hotels participating in this study.

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7.0 Analyses of the relationships between: Employee Demographic

Variables, Organisational Climate, Customer Satisfaction, and

REVPAR

7.1 Overview

In this chapter the relationships between the dimensions of organisational

climate, customer satisfaction and REVPAR will be examined. As described in chapter

4, data presented in this study fall into 2 categories. The first represents data on

variables for which a single value exists for each of the 14 hotels (Hotel Level Data). A

particular variable may fall into this category of data either as a consequence of the fact

that it is inherently only a property of the hotel and not the individual staff member (e.g.

REVPAR), or as a result of the aggregation of scores of staff members within each hotel

to produce a score which is an �average� value for staff members of that hotel. The

second category of data represents variables where there is a score for each individual

staff member who participated in the study (Staff Level Data).

It is important to understand the different outcomes that may come about by

analysing data from these different categories. For example, there may be 2 variables

for which there are scores for each staff member in the sample. This then allows the

calculation of the aggregate scores for each hotel consisting of the mean score of the

staff members� responses for that hotel. This would yield 2 new variables, each

consisting of 14 cases. It is mathematically possible to, first, analyse the relationship

between these 2 variables using the scores from all of the individual staff members

participating in the study and find a significant relationship between the 2 variables, and

second, analyse the relationship between these 2 variables using the aggregate scores

and find no variation between hotels on either variable and find a non-significant

relationship between the 2 variables.

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Different analyses within this chapter will be undertaken at different levels of

the data from the responses of staff members across 14 hotels. Consequently, on some

occasions it is necessary to perform analyses in which an individual �case� represents an

individual employee and in other analyses an individual �case� may represent an Hotel.

The models outlined in Chapter 3 guide the overall analyses presented in this

chapter. First, an explanation of the statistical and modelling procedures is presented.

Second, a method to define an aggregate (composite) measure of Organisational

Climate is presented. Third, a series of analyses are presented to examine the viability of

Structural Model A. Fourth, a series of analyses are presented to examine the viability

of Structural Model B.

7.2 Statistical analyses and modeling techniques used in this chapter

7.2.1 Multiple linear regression

This statistical technique relies upon two or more predictors that are jointly

regressed against the criterion variable, and is known as multiple linear regression. The

correlation coefficient r indicates the strength of the relationship between 2 variables

but does not give the magnitude of the variance in that dependent variable that will be

explained when several independent variables are theorised to simultaneously influence

it. Where the dependent variable is, for example, organisational climate it may be

explained by a range of independent demographic and other variables (predictors).

Multiple linear regression is a technique that provides the calculation of the

multiple correlation coefficient R which is an index of correlation between a set of

independent variables and the dependent variable. More importantly, the technique

provides an explanation of how much of the dependent variable is explained by a set of

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predictors by providing an index of the proportion of variance explained in the

dependent variable by the set of independent variables (R2).

7.2.2 Structural equation modelling

Ullman (1996) describes structural equation modeling as �a collection of

statistical techniques that allow examination of a set of relationships between one or

more IVs [independent variables], either continuous or discrete, and one or more DVs

[dependent variables], either continuous or discrete� (p. 709). Structural equation

modeling is used to examine the efficacy of proposed cause and effect relationships

between a set of variables. In its most simple form, structural equation modeling

represents the application of correlation and multiple linear regression to evaluate the

strength of the relationships between variables. Within the framework of this type of

analytical approach, for an hypothesised model to be a viable explanation of the

relationships between variables, it is necessary, but not sufficient, for correlation

coefficients or regression coefficients to be significant between variables for which

cause and effect relations are proposed.

A number of indices of the goodness of fit of the hypothesised model in

providing a parsimonious explanation of the relationships between variables exist. A

good fit is sometimes indicated by a non-significant χ2 value (Ullman, 1996). Ullman,

however, lists a number of problems associated with the use of χ2 as a goodness of fit

index when conducting structural equation modeling. First, with small samples the

computed χ2 need not have a χ2 distribution. Second, with large samples trivial

differences between an estimated population values may be significant. Third, when

assumptions underlying the χ2 test statistic are violated, the associated probability levels

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are unreliable. As a consequence of these problems, Ullman (1996) reports that

numerous measures of goodness of fit have been proposed.

The Goodness of fit index (GFI) calculates a weighted proportion of variance in

the sample covariance matrix accounted for by the estimated population covariance

matrix (Tanaka and Huba, 1989, as cited in Ullman, 1996). Tanaka and Huba propose

the GFI to be analogous to R2 in multiple regression. A GFI of 1 represents a perfect fit

between the hypothesised model and the observed data. A GFI value in excess of .9 is

usually accepted as indicating a good fit of the model to the empirical data.

The Adjusted Fit Index (AGFI) represents a modification of the GFI which

incorporates both the number of parameter estimates in the model and the number of

data-points in the sample. The greater the number of estimated parameters, the smaller

the AGFI value is relative to the GFI. Conversely, the smaller the number of data-

points, the smaller the AGFI will be with respect to the GFI.

One goal of all modeling, including structural equation modeling, is parsimony.

As a general rule, increasing the number of parameters in a model will serve to increase

the fit of the model to observed data. A good model, therefore, contains as few

parameters as possible. A number of Parsimony fit indices exist. These include;

The PGFI represents a modification of the GFI to take into account parsimony of

the model (Mulaik, et. al., 1989, as cited in Ullman, 1996). The PGFI may be described

by

PGFI = [1 � (No. of estimated parameters/No. of data-points)] * GFI

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The closer this fit index is to a value of 1.00, the better the fit of the model. This

index provides a heavy penalty for the estimation of a large number of parameters

within a model and is usually much smaller than other indices of fit (Ullman, 1996).

The Akaike Information Criterion (AIC) and the Consistent Akaike Information

Criterion (CAIC) are 2 different measures of parsimony of fit that each use χ2 and the

degrees of freedom:

AIC = χ2model � 2dfmodel

CAIC = χ2model � (lnN + 1) dfmodel

For these 2 indices small values indicate a parsimonious fit. Ullman reports,

however, there to be no consensus regarding precisely how small is small enough.

7.3 Structural Model A: Relationship between demographic variables,

Organisational Climate and Customer Satisfaction.

In Structural Model A (Figure 7.1) it is proposed, firstly, that a number of

employee demographic variables (Gender, Age, Education, Organisational Tenure, Job

Tenure, Income, Hours Worked, Employment Status and Training Interval) will affect

Organisational Climate (as represented by our Composite Measure of Organisational

Climate). Secondly, that Organisational Climate will affect customer satisfaction (as

represented by our measure of Employee Perceptions of Customer Satisfaction).

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Figure 7.1 Structural Model A

This model was examined, firstly, by applying multiple regression using the

demographic variables listed above to predict our Composite Measure of Organisational

Climate. Secondly, Pearson�s correlation coefficient (r) was used to establish whether

there is a link between Organisational Climate and Employees� Perceptions of Customer

Satisfaction, and third, structural equation modeling techniques were used to devise an

overall index of goodness of fit of the model.

7.3.1. Multiple linear regression analysis examining the relationship between

employee demographic variables and organisational climate proposed by

structural model A.

Scores for each employee on 9 demographic variables (Gender, Age, Education,

Organisational Tenure, Job Tenure, Income, Hours Worked, Employment Status, and

Training Interval) were entered into a Multiple Linear Regression analysis as predictor

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variables (Independent Variables) of our Composite Measure of Organisational Climate

(Dependent Variable).

Significant correlation�s (p< .001) were found between our Composite Measure

of Organisational Climate and the predictor variables Income (r = .107), Hours Worked

(r = .148), Employment Status (r = -.090), and Training Interval (r = -.120). The

Multiple Linear Regression indicated a significant link between the set of predictor

variables and Organisational Climate (F(10,1359) = 6.58, p < .001). Overall, however, this

link was relatively modest with a multiple correlation coefficient of R = .21. This result

means that, while the relationship between the set of predictor variables is statistically

significant, only 4.5% (R2 = .045) of the variance in our Composite Measure of

Organisational Climate may be explained by these 9 demographic variables.

An examination of the relative contribution of different predictor variables as

indexed by their regression coefficients (Table 7.1), shows significant individual

contribution for hours worked per week (t(1359) = 3.092, p < .01) and time since last

training session (t(1359) = -3.84, p < .001).

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Table 7.1 Regression coefficients and associated probabilities for Multiple

Linear Regression using demographic variables to predict Composite Measure of

Organisational Climate.

Variable B S.E. B Beta t Sig t

Constant 4.605 .156 29.427 .000

Gender .048 .034 .039 1.381 .168

Age -.007 .019 -.012 - .375 .708

Education -.017 .011 -.046 -1.615 .107

Length of Service -.014 .024 -.023 - .566 .571

Length in Job -.008 .025 -.013 - .323 .747

Gross salary .021 .014 .0614 1.536 .125

Hours/week .042 .013 .133 3.092 .002

Mode of Employment -.001 .028 -.001 - .032 .974

Time since Training -.051 .013 -.109 -3.837 .000

7.3.2 An examination of the relationship between organisational climate and

employee perception of customer satisfaction as proposed by Structural Model A.

A second stage of analysis for Structural Model A was conducted which

examined the relationship predicted by the model to exist between the Composite

Measure of Organisational Climate and Employees� Perception of Customer

Satisfaction. The individual responses of each employee in the sample were entered into

the analysis which found a significant correlation between the 2 measures (r= .425,

p<.001). This analysis indicated that 18.1% of the variance in employee perceptions of

customer satisfaction could be accounted for by the Composite Measure of

Organisational Climate.

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When this analysis was conducted for each hotel individually, the relationship

was shown to hold for each of the hotels (Table 7.2).

Table 7.2 Pearson r correlation coefficients examining the relationship

between the Composite Measure of Organisational Climate and Employee

Perceptions of Customer Satisfaction for each of the Hotels participating in the

study.

Hotel Pearson r Sample size

1 .439** 428

2 .372** 95

3 .274** 230

4 .346* 49

5 .254* 64

6 .435** 35

7 .388* 41

8 .316* 40

9 .515** 29

10 .287* 71

11 .318** 74

12 .479* 22

13 .561** 144

14 .449** 60

*significant at .05 level**significant at .01 level

The analyses above show significant relationships between the Composite

Measure of Organisational Climate and Employee Perceptions of Customer Satisfaction

when analyses are carried out on data from individuals within the organisations studied.

It is, however, possible that these results need not reflect the differences between the 14

hotels studied here. To examine this, the Mean Composite Measure of Organisational

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Climate score, and Mean Customer Satisfaction score was calculated for each Hotel

(Table 7.3).

Table 7.3 Mean Composite Measure of Organisational Climate, Mean

Employee Perception of Customer Satisfaction and REVPAR for each of the 14

Hotels.

Hotel Organisation Customer REVPAR

1 4.7384 3.77 96.77

2 5.1061 4.15 151.59

3 5.0809 4.25 89.76

4 4.9139 3.55 78.11

5 4.9166 3.99 72.42

6 4.9362 3.91 86.13

7 4.9553 3.96 63.29

8 4.8533 3.91 74.68

9 4.9184 4.5 124.16

10 4.9736 3.95 65.10

11 5.0399 3.96 78.19

12 5.3833 4.07 62.25

13 4.8178 3.67 73.24

14 4.8139 3.58 77.36

The correlation between these 2 variables was then calculated to show a

correlation of r = .469. This analysis shows that 22% of the variance in Mean Customer

Satisfaction between the Hotels could be explained by differences in Mean

Organisational Climate between the Hotels.

7.3.3 Structural equation modeling

The data were entered into the AMOS program (Arbuckle, 1997) and the

analysis calculated the goodness of fit of the empirically derived data with the

theoretical model (Appendix F). Maximum likelihood estimation was employed to test

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all models. The independence model that tests that the hypothesised variables showed

that they are uncorrelated and therefore were easily rejected (χ2(66) = 3332, p < .001).

Despite the analysis finding a significant chi-square (χ2(10) = 59.462, p < .001), the

goodness of fit indices demonstrated support for the model (Table 7.4).

Table 7.4 Goodness of fit and parsimony of fit indices for structural equation

analysis.

Index Value

Goodness of fit indices NFI 0.982GFI 0.992AGFI 0.938IFI 0.985CFI 0.985RMR 0.040

Parsimony of fit indices PGFI 0.127AIC 195.8CAIC 610.3

The fit indices �goodness of fit index� (GFI) and the �adjusted fit index� (AGFI)

are both in excess of .9 and indicate a good fit of the model to the data (Tabachnick and

Fidell, 1996, p. 750). The degree of parsimony fit indices, the PGFI, the Akaike

Information Criterion (AIC) and the Consistent Akaike Information Critereon (CAIC),

however, with values of 0.135, 173.5 and 519.9 respectively are relatively low in the

former case, and high in the latter 2 cases (Tabachnick and Fidell, 1996, p. 750). These

indices reflect the fact that a relatively large numbers of variables were used in the

model to produce the fit achieved.

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7.3.4 Summary of analysis of Structural Model A

Although Structural Equation Modeling Analysis yielded a respectable

Goodness of Fit index (.991), this index could be viewed as indicating that the large

sample size used in this analysis provided strong evidence of a weak relationship. The

nine demographic variables were shown in the regression analysis to have a significant

predictive relationship with the Composite Measure of Organisational Climate. And

given all 10 predictor variables combined served only to explain 4.5% of the variance, it

is doubtful that in �real world� applications such a relationship would be useful in

examining financial outcomes for hotels.

Although the only fair interpretation is that poor support was found for the

global model presented here. The relatively strong relationship between mean employee

perceptions of customer satisfaction and mean Composite Measure of Organisational

Climate in which 22% of the variation in one was explained by the other may have �real

world� application. This relationship is relevant to the following analysis of Structural

Model B.

7.4 Structural Model B: The relationship between Organisational Climate,

Customer satisfaction, and REVPAR.

In Structural Model B relationships were proposed between the underlying

dimensions of Organisational Climate, Employee Perceptions of Customer Satisfaction,

and REVPAR. The PCA presented in Chapter 5 did not provide a perfect replication of

the factor structure described by either Jones and James (1979) or by Ryder and Southey

(1990), rather a factor structure that essentially reflected a mix of factors consistent with

factors described in both of the earlier studies. On the basis of the results presented in

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Chapter 6, a slightly modified version of Structural Model B is now presented in Figure

7.2.

Autonomy

Figure 7.2 Structural Model B

This model was tested by first, applying multiple regression using the 7

dimensions of Organisational Climate to predict Employee Perception of Customer

Satisfaction. Second, a Pearson r correlation was used to establish whether there is a

link between Employee Perception of Customer Satisfaction and REVPAR, and third,

structural equation modeling techniques were used to devise an overall index of

goodness of fit of the model.

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7.4.1 Multiple linear regression analysis examining the relationship between

organisational climate dimensions and employee perception of customer

satisfaction proposed by Structural Model B.

For each of the employees, the factor scores on each of the 7 dimensions of

Organisational Climate were entered as predictor (Independent) variables of Employee

Perception of Customer Satisfaction (Dependent Variable) in a Multiple Linear

Regression.

Employee Perception of Customer Satisfaction was shown to be significantly

correlated with each of the 7 factors (Table 7.5).

Table 7.5 Correlations between Employee Perception of Customer Satisfaction

and each of the 7 dimensions of Organisational Climate.

Factor Pearson r

1. Leader Facilitation and Support .386*

2. Professional and Organisational Esprit .534*

3. Conflict and Ambiguity .412*

4. Regulations, Organisation and pressure -.309*

5. Job variety, challenge and autonomy .293*

6. Workgroup cooperation, friendliness and warmth .294*

7. Job standards .247*

* correlation is significant at the 0.001 level

The Multiple Linear Regression indicated a significant link between the set of

predictor variables and Employee Perception of Customer Satisfaction (F(7,1381) =

83.953, p < .001). This link was reflected by a relatively strong multiple correlation

coefficient of R = 0.547. This result means that 30% (R2 = 0.30) of the variance in

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Employee Perception of Customer Satisfaction may be explained by these 7 dimensions

of Organisational Climate.

An examination of the relative contribution of different predictor variables as

indexed by their regression coefficients (Table 7.6), shows significant individual

contribution for Professional and Organisational Esprit (t(1374) = 13.713, p < .001),

Regulations, Organisation and Pressure (t(1374) = -2.626, p < .005), and Job Variety,

Challenge and Autonomy (t(1374) = -2.946, p < .005).

Table 7.6 Regression coefficients and associated probabilities for Multiple

Linear Regression using Organisational Climate Dimensions to predict Employee

Perception of Customer Satisfaction.

B Std.Err.

Beta T Sig.

Constant 2.024 .177 11.44 .0001. Leader Facilitation and

Support-9.8-03 .027 -.015 -.364 .719

2. Professional andOrganisational Esprit

.351 .026 .490 13.71 .000

3. Conflict and Ambiguity 4.6E-02 .025 .067 1.841 .0664. Regulations, Organisation and

pressure-5.0E-02 .019 -.070 -2.63 .009

5. Job variety, challenge andautonomy

-5.7E-02 .019 -.098 -2.95 .003

6. Workgroup cooperation,friendliness and warmth

4.5E-02 .028 .047 1.612 .107

7. Job Standards 2.2E-02 .021 .030 1.070 .285

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7.4.2 An examination of the relationship between REVPAR and employee

perception of customer satisfaction as proposed by Structural Model B.

Structural Model B predicts a relationship to exist between REVPAR and

Employee Perception of Customer Satisfaction. Seemingly the question as to whether

this relationship exists between 2 continuous variables may simply be answered by

conducting a simple correlation between the 2 variables. These 2 variables, however,

each fall into the 2 different categories of data (Hotel Level Data, and Staff Level Data)

and so 2 different analyses were conducted, one at each level of data.

In the first analysis, the 2 variables were examined at the Staff Data Level. Each

employee had a score for Employee Perception of Customer Satisfaction. A score for

each employee was assigned for REVPAR, simply by assigning the REVPAR score for

the hotel in which the employee worked. A simple Pearson r correlation was then

conducted which found a significant correlation between REVPAR and Employee

Perception of Customer Satisfaction (r = 0.112, p < .001).

In the second analysis (conducted at the Hotel Level), for each hotel an

aggregate score for Employee Perception of Customer Satisfaction was calculated by

simply taking the mean score of this variable across all employees in the hotel.

REVPAR and Mean Employee Perception of Customer Satisfaction were then entered

into a simple Pearson r correlation. If one accepts the a priori notion that should

customer satisfaction affect REVPAR, then the effect should be positive, then the

analysis finds a significant effect for Average Customer Satisfaction as a predictor of

REVPAR (r = 0.479, P < .05, one-tailed). Regardless of whether this a priori

assumption is made, the analysis found 23% of the variance (r2) in REVPAR to be

explained by variation in Mean Employee Perception of Customer Satisfaction.

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7.4.3 Structural equation modeling

The Staff Level Data were entered into the AMOS program (Arbuckle, 1997)

and the analysis calculated the goodness of fit of the empirically derived data with the

theoretical model (Appendix F). Maximum likelihood estimation was employed to

estimate all models. The independence model that tests the hypothesis that all variables

are uncorrelated was easily rejected (χ2(36) = 5284, p < .001). Despite the analysis

finding a significant chi-square (χ2(7) = 49.004, p < .001) the goodness of fit indices

demonstrated a good fit for the model (Table 7.7).

Table 7.7 Goodness of fit and parsimony of fit indices for structural equation

analysis.

Index ValueGoodness of fit indices

NFI 0.991GFI 0.993AGFI 0.953IFI 0.992CFI 0.992RMR 0.354

Parsimony of fit indicesPGFI 0.154AIC 125.0CAIC 363.4

The fit indices �goodness of fit index� (GFI) and the �adjusted fit index� (AGFI)

are both in excess of .9 and indicate a good fit of the model to the data (Tabachnick and

Fidell, 1996, p. 750).

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7.4.4 Summary of analysis of Structural Model B

The structural equation modeling analysis provided good support for the model

with a goodness of fit index of .993. Further, the magnitude of the relationships between

variables, within the model are likely to provide useful insights in �real world�

applications. Using Multiple Linear Regression, it was shown that the seven dimensions

of Organisational Climate explained 30% of the variation, in employee perception of

customer satisfaction. A correlation analysis found that 23% of the variation in

REVPAR could be explained by the variation in mean employee perception of customer

satisfaction.

7.5 Summary and discussion

In this chapter, the relationships between a set of employee demographic

variables (described in Chapter 5), the seven dimensions of Organisational Climate

(extracted in Chapter 6), a Composite Measure of Organisational Climate (described in

Chapter 6), employee perception of customer satisfaction, and a measure of hotel

financial performance (REVPAR) were investigated.

Two structural models were presented which proposed a priori relationships

between these variables. In the first model (Structural Model A), it was proposed that

variation within staff demographic variables would cause variation in hotel

Organisational Climate (as indexed by the Composite Measure of Organisational

Climate). And that variation in hotel Organisational Climate would cause variation in

customer satisfaction (as measured by Employee Perception of Customer Satisfaction).

A significant relationship between the Composite Measure of Organisational

Climate and Employee Perception of Customer Satisfaction was found. This was true

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for the Staff Level Data, where correlation was performed on scores from each

individual employee. In this analysis, 18.1% of the variation in customer satisfaction

was explained by variation in the Organisational Climate. More importantly, this

relationship also held for data at the Hotel Level, when aggregate variables were

produced by averaging scores for employees within each hotel, and thereby producing a

single score for Organisational Climate and a single score for Customer Satisfaction for

each of the 14 hotels. The correlation of these 2 new variables found 22% of the

variance between hotels in Employee Perception of Customer Satisfaction could be

explained by variation between hotels in Organisational Climate. These results provided

strong support for part of Structural Model A.

Analysis of relationships within other parts of Model A did not produce such

strong support. Nine employee demographic variables were proposed to affect

Organisational Climate within the hotels. Regression analysis found a significant

relationship to exist. Although this relationship was statistically significant, only 4.5%

of the variation in the composite measure of Organisational Climate was found to be

explained in terms of the 10 demographic variables. These results serve to describe a

small, but significant, effect on Organisational Climate of employee demographic

variables, which served to produce a respectable overall goodness of fit index for this

model. Overall it should be interpreted that the large number of cases entered into the

structural equation modeling analysis provided strong support for a large number of

weak relationships. Taken as a whole the model is not likely to have relevance in �real

world� applications. The particular link within the model between the Composite

Measure of Organisational Climate and employee perception of customer satisfaction

would, however, be relevant and also relates to the analysis of Structural Model B.

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In the second structural model (Structural Model B), it was proposed that

variation in the 7 dimensions of Organisational Climate (described in Chapter 6) would

produce variation in customer satisfaction (as indexed by Employee Perception of

Customer Satisfaction), which in turn would lead to variation in REVPAR. Good

support was found for this model both in terms of statistical significance and in terms of

magnitude of effects.

First, all of the dimensions of Organisational Climate are significantly correlated

(at the .001 level) with Employee Perception of Customer Satisfaction. When used as

predictors in a multiple linear regression, variation of this set of 7 Organisational

Climate dimensions was found to explain 30.0% of the variation in Employee

Perception of Customer Satisfaction.

The second part of Structural Model B predicted a relationship between

customer satisfaction and a measure of hotel financial performance (REVPAR). A

significant correlation was found between these 2 variables when conducted using Staff

Level Data (r = .112). More importantly, when an aggregate variable was produced by

calculating the mean score for Employee Perception of Customer Satisfaction for each

of the hotels, and this new variable was correlated with REVPAR (and thereby

conducting an analysis at the Hotel Level), 23% of the variation in REVPAR between

the hotels could be explained by variation in Employee Perception of Customer

Satisfaction.

The results of this analysis provide strong support for Structural Model B. The

magnitude of the relationships between the variables indicates that these relationships

may be viewed as having a commercial, as well as a statistical and theoretical,

significance.

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In conclusion, the major finding of this chapter is that Organisational Climate,

whether treated as a multidimensional construct or as an aggregate measure, can be

demonstrated to have both a statistically significant, and a commercially relevant, effect

on customer satisfaction (as indexed by employee perceptions). Further, customer

satisfaction has also been found to have both a statistically significant, and

commercially relevant, effect on REVPAR.

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8.0 General Discussion and Conclusions

8.1 Overview of study

This study gathered data from 14 four to five-star hotels in South-East

Queensland, Australia, in an attempt to examine the nature and degree of influence

organisational climate has upon the level of performance of organisations within the

Australian hotel industry. Employee Perception of Customer Satisfaction was studied

both as an index of hotel performance and as an intervening variable between

organisational climate and REVPAR (average daily room rate multiplied by occupancy

rate) - an index of hotel financial performance.

In addition to measures attempting to represent organisational climate and

customer satisfaction, a number of descriptive statistics were gathered relating to both

the operating characteristics of hotels, and the employees working within these

organisations. The gathering of this information represented an attempt to satisfy the

first 2 aims of this study;

To provide a profile of the hotels participating in the study in terms of their key

operating characteristics.

To provide a profile, in terms of key demographic variables, of staff employed

within the hotels in our sample.

8.2 Hotel operating statistics

Despite the fact that all hotels in the study were in the range four to five-star, as

expected, the hotels nevertheless varied considerably across their key operating

statistics. The size of the hotels, for example, varied from less than 200 rooms to over

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400 and occupancy rates varied from 52% to 80%. The rack rate for hotels varied

between $170 and $344. Interesting as these variations between hotels may be, the

principal aim of this study was to examine variation in organisational climate and its

effect on hotel financial performance. A necessary condition for such a comparison to

be meaningful is the existence of significant variation in financial performance, as

indexed here by the measure REVPAR. This important variable demonstrated a

considerable degree of variation between hotels, from a figure of $62 to $124.

8.3 Staff demographic data

Overall the staff profile indicated a young, educated and trained, relatively

gender-balanced group which received comparatively low levels of remuneration and

displayed a high level of turnover.

The data demonstrated roughly equal numbers of males and female employees

across the sample. When this analysis was confined to management, however, females

were found to be under represented. In general the workforce is a young one, with the

majority of employees being under 35 years of age. The pattern of young employees

was also reflected in management, where most managers were in the 25-34 years

category.

The workforce was found to be well qualified with over 60% of staff to have

qualifications at the post-secondary level and above. Employees also reported a high

frequency of job training with 72% of employees having attended a training session

within the past 12 months. Despite employees demonstrating relatively high levels of

education and training, remuneration was relatively poor. This was true, even when the

mode of employment of many employees was accounted for. Only 5% of employees

received in excess of $36,000 p.a., despite the fact that 61% of employees are in full-

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time employment and 65% of employees worked 36 hours or more per week. This

compares with a current average full-time wage in Australia of $38,615.20 and average

total earnings (which includes overtime) of $40,768 (Martin, 1999).

Perhaps understandably, in the light of the remuneration data, there was a very

high turnover of staff, with 58.5% of employees having been with their organisation for

less than 2 years. These figures, of course, were reflected in the job tenure data with

66% of employees in their current job for less than 2 years.

Although it is beyond the analyses and aims of the current project, the data

presented here leave open the question as to whether the high turnover in staff is in part

a consequence of the relatively poor remuneration given to a relatively well educated

workforce. It would seem that the workforce is generally capable of finding what they

perceive as more rewarding employment elsewhere. If this is indeed the case, the

opportunity costs of such a situation need to be considered and investigated. The costs

would certainly involve the ongoing direct costs of continually training large numbers

of new employees. Further, there is naturally a direct cost to the employer arising from

new staff performing less efficiently in their positions, whilst undergoing orientation,

training and learning their job, than would an experienced employee.

The high turnover of staff may, of course, not be strongly related to level of

remuneration. Vallen (1993) reported that service jobs with a high degree of customer

interactions have a higher level of burnout. Within Vallen�s survey, hospitality firms

rarely used a consultative style. He concluded that high burnout was correlated with low

organisational climate scores in highly autocratic organisations. In the context of the

current study, a workforce which is not motivated to remain with its employer, is a

workforce that would be expected to generate a less than optimal organisational climate.

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As will be described below, such a climate may well result in lower levels of customer

satisfaction and poorer financial outcomes for hotels.

8.4 Variation in staff demographic variables between hotels

One of the models tested in this study (Structural Model A) predicted staff

demographic variables would affect organisational climate. For such variables to

explain differences in organisational climate between hotels, the variables need also

demonstrate variation between hotels. The third aim of this study was to establish

whether the staff demographic variables vary significantly between the hotels in the

sample.

All of the key staff demographic variables were found to significantly vary

between hotels. Gender-balance varied between hotels from close to 50/50 in one hotel

to 80% female to 20% male in another. Although across all of the hotels, the workforce

was young, the percentage of employees in the �over 45 years of age� category ranged

from 3% to 21%. The level of education varied from 53% with post-secondary

qualifications to 81%. Organisational tenure varied from a figure as low as 40% of staff

having been with the organisation less than 2 years to figures in excess of 85% for 3

other hotels. Job tenure was reported to range between hotels from 49% to 94% of

employees having been in their current job for less than 2 years. Hotels varied between

3% and 24% of employees earning in excess of $31,000 p.a. In one hotel, only 51% of

employees were in full-time employment whereas this ran as high as 90% in another. In

terms of hours worked per week, one hotel had only 58% of employees work 36 hrs or

more per week, whereas this figure was as high as 84% in another. Although all hotels

displayed high proportions of staff having received training in the last 12 months, the

figure varied from as low as 62% of employees to 91%.

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Like the hotel operating statistics, these data indicate that despite the fact that all

of the hotels were four to five-star, there was considerable variation in employee

characteristics across the hotels. This situation leaves open the possibility that these

employee variables will serve to explain some of the variation in organisational climate

between the hotels.

8.5 The Measurement of organisational climate within the hotels of the sample

The principal thrust of this thesis was the investigation of organisational climate

and its effect on hotel performance. Individual employees in this study were presented

with an instrument which aimed to measure their perceptions of the psychological

climate in which they worked. Organisational climate within each hotel was estimated

by averaging these responses.

The instrument used was a modified version of one presented in an earlier study

by Ryder and Southey (1990), which itself was a modification of the Psychological

Climate Questionnaire presented by Jones and James, 1979). The instrument was

modified for this study principally to reduce its length to something that was practicable

for use within the hospitality industry. To this end, the instrument was reduced from its

original 145 items, to 70 items.

The fourth specific aim of the study was to identify the underlying dimensions of

organisational climate within Australian hotels. This was addressed by a Principal

Components Analysis (PCA) that was applied to the employee responses to the

organisational climate Questionnaire.

H1 A limited number of factors will be identified as being able to determine the

organisational climate across the hotels in this study.

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The first hypothesis was supported in so far as the PCA extracted 7 interpretable

underlying dimensions. These dimensions were given the following labels.

! Leader facilitation and support

! Professional and organisational esprit

! Conflict and ambiguity

! Regulations, organisation and pressure

! Job variety, challenge and autonomy

! Workgroup co-operation, friendliness and warmth

! Job standards

Although the instrument used in this study used only half the items, and on many

items required a different style of response, these factors were consistent with those

originally described by Jones and James for a sample of U.S. military personnel. Their

study produced the following factors;

! Conflict and Ambiguity

! Job Challenge, Importance, and Variety

! Leader Facilitation and Support

! Workgroup Cooperation, Friendliness, and Warmth

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! Professional and Organisational Esprit

! Job Standards

As can be seen above, 5 of the components extracted in this study were interpreted

as essentially the same and given the same title as components described in the Jones

and James study. Of the remaining 2 components extracted here, the first, �Job variety,

challenge and autonomy� was interpreted as essentially the same, as the second factor of

Ryder and Southey. The second, �Regulations, organisation and pressure� was found to

have significant overlap with Ryder and Southey�s component �Conflict and Pressure�.

Although it might be argued that the present study did not extract precisely six

underlying dimensions as was reported in the two earlier studies of Jones and James,

and Ryder and Southey. When the results are analysed, in terms of the item loadings

and the associated meaning of these dimensions, the results are broadly consistent with

those of Jones and James. When they are not consistent with that study, they would

appear to be consistent with the results of Ryder and Southey.

By the application of PCA to the data, it was possible to describe the underlying

dimensions of organisational climate within the sample of 14 hotels. Further, this

analysis provided a method by which each of the employees in the sample could be

assigned a value for each of these 7 psychological dimensions. An overall composite

value of psychological climate, for each employee could also be produced by averaging

these seven dimensions. By aggregating over these scores, it was also possible to assign

a value for each of the hotels on each of the underlying dimensions of organisational

climate and on the composite measure of organisational climate. These procedures then

allowed the possibility of further analyses to examine the relationship of these

dimensions to variables of hotel performance.

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8.6 Testing Structural Model A

In Chapter 3 a structural model (Structural Model A) was presented which

proposed that organisational climate would be affected by the demographic

characteristics of employees within the hotels, and that organisational climate would

affect employee perception of customer satisfaction. The fifth aim of this project was

effectively to test Structural Model A.

Figure 8.1 Structural Model A

This model directly produced hypotheses 2 and 3;

H2 There will be a significant correlation between an aggregate measure

of organisational climate and employee perception of customer satisfaction.

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In a strict statistical sense hypothesis 2 may be interpreted as being supported; a

multiple linear regression using the demographic variables produced a statistically

significant effect (p < .001). However, only 4.5% of the variance in organisational

climate was explained by the 9 predictor variables. Consequently, 95.5% of variation in

organisational climate was not predicted by the relationship. Although a real but weak

link might be argued between these variables, its utility in any practical real world

application would be extremely limited.

H3 Employee demographic variables, taken as a multivariate variable, will

be a significant predictor of an aggregate measure of organisational climate.

Hypothesis 3 received strong support. When analyses were conducted at the

hotel level, a correlation (r) of .469 was found between the composite measure of

organisational climate and Employee Perception of Customer Satisfaction. This analysis

shows that 22% of the variance in Mean Customer Satisfaction between the Hotels

could be explained by differences in Mean organisational climate between the Hotels.

When examined overall, Structural Model A provides a poor explanation of the

overall relationship between the variables. The link between the employee variables and

that of global organisational climate provides very little explanation of variation in

organisational climate, despite the fact that 9 variables are used to provide the

explanation. Given that other parts of the model display such poor links, the fact that a

relatively strong relationship is found between the Composite Measure of organisational

climate and Employee Perception of Customer Satisfaction does not provide strong

support for the model. Of itself, however, the result is very interesting. The result is

consistent with the notion that organisational climate has a major impact on customer

satisfaction. This relationship was investigated further in Structural Model B.

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8.7 Testing Structural Model B

In Chapter 3, a structural model (Structural Model B) was presented which

proposed that the financial performance of the hotels (as indexed by REVPAR) would

be affected by customer satisfaction (as indexed by Employee Perception of Customer

Satisfaction). Further, the seven dimensions of organisational climate would affect that

customer satisfaction. The sixth aim of this project was effectively to test Structural

Model B.

Figure 8.2 Structural Model B.

This model directly produced hypotheses 4 and 5;

H4 There will be a significant correlation between employee perception of

Autonomy

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customer satisfaction and REVPAR.

H5 The dimensions of organisational climate, taken as a multivariate

variable, will be a significant predictor of an aggregate measure of employee

perception of customer satisfaction.

H4 was supported when analyses were conducted on both employee level and

hotel level data. The correlation (r) between Average Customer Satisfaction (hotel level)

and REVPAR was 0.479. This indicated that 23% of the variance in REVPAR could be

explained by variation in Mean Employee Perception of Customer Satisfaction. This

result provided strong evidence of a link between customer satisfaction and hotel

financial performance.

H5 was also supported. Using multiple linear regression, it was found that the

set of 7 dimensions of organisational climate accounted for 30% of the variation in

customer satisfaction (as indexed by Employee Perceptions of Customer Satisfaction).

This result provides strong evidence of a link between organisational climate and

customer satisfaction.

8.8 Implications of the result that Structural Equation Model B is supported

Taken together, in conjunction with the structural equation modelling analysis

(in which GFI = .993), these two results provide strong evidence in support of

Structural Equation Model B. Further, this evidence is not simply of a link that might

have some theoretical significance, the magnitude of the relationships between

organisational climate, Employee Perception of Customer Satisfaction, and REVPAR,

are of an order which has significant practical implications for hotel management. This

outcome leads to predictions that programs which increase the positive aspects of

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organisational climate, would serve to produce an increase in customer satisfaction

which in turn would result in an increase in REVPAR.

These results serve to underline the fact that the major resource component in

service delivery is the hotel employee (the deliverer of the service). This is important in

the context of Bandura�s statement that �people act on their judgments of what they can

do, as well as their beliefs about the likely effects of various actions� (as cited in

Kopelman, Brief, and Guzzo, 1990, p. 294). Schneider (1989, p. 748) stated,

�employees observe what happens to them (and around them) and then draw

conclusions about the organisational priorities. They then set their own priorities

accordingly�. In an industry in which the quality of service delivered to a customer is

directly dependent upon individual employees, the environment, or climate, in which

that employee works will directly modulate the quality of service delivered. This

conclusion is supported elsewhere by the results of Schneider and Bowen (1985) and

Cole, Bacayan and White (1993) who provide evidence that a good organisational

climate has a positive effect on service outcomes. Schneider (1973) similarly found that

it was the atmosphere in a bank, whether it was �warm and friendly� that best predicted

customer-switching intentions.

The hotel industry, like most service industries, is one in which the vast majority

of its output is intangible and represents a coincidence of production and consumption.

Within such a framework our results serve to reinforce Schneider, Gunnarson and Niles-

Jolly in their claim that �in the absence of direct control of the service counter, it is the

climate and culture that determines high quality service� (1994, p. 23). As stated by

Schneider and Bowen �because services themselves yield little tangible evidence as a

useful basis for evaluation, it is how they are delivered, and the context in which they

are delivered that is important� (1985, p. 431).

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A prescription that emerges from this project would be for all hotels in the

industry to follow the lead of the Marriott group, the only hotel to be named in Fortune

Magazine�s top one hundred American companies (Branch, 1999), to instigate a regular

measurement of organisational climate. And further, that such measurement of

organisational climate not be an end in itself, but a tool to guide and evaluate programs

to improve organisational climate (and therefore customer satisfaction and financial

returns) on an ongoing basis.

8.9 The validity of measures used in this study

As in all research, this research is only as valid as the variables are valid in

measuring concepts they purport to measure.

8.9.1 The index of financial performance REVPAR

In the case of financial performance, the variable used here to index this

performance was REVPAR. This measure is a standard measure used within the hotel

industry as a yardstick by which hotel performance may be compared. It is a relatively

�concrete� variable in which there may be little dispute as to its interpretation.

8.9.2 Organisational climate

In the case of organisational climate. The instrument used in the current study

was, in one sense, new. In its current form, this is the first time it has been applied to a

large sample. Having said that, although the instrument may be described as �new�, the

items within the instrument are not. Although it contained a set of only 70 items, these

items were previously used in a much longer instrument used by Ryder and Southey,

and represented modifications of items of an instrument presented by Jones and James

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(1979). PCA have been reported on both of these earlier versions of the instrument.

Despite this being a new instrument, the PCA conducted on the responses of the

employees in this study were consistent with those of the earlier 2 studies. In this study,

5 of the factors extracted were given the same nomenclature as factors presented by

Jones and James. A sixth factor was given the same label as a factor described by Ryder

and Southey and a seventh factor was judged to have significant overlap with another of

Ryder and Southey�s factors.

The order of the factors differ from those of Jones and James. This is not

unusual in PCA studies as the order reflects the proportion of variance accounted for in

each individual sample. In this case the fact that Leadership facilitation and support

came out as the first factor (i.e. accounting for the largest proportion of the variance) is

understandable given one might expect greater variation in leadership style within less

bureaucratic private organisations than one might expect in the military (the sample

used by Jones and James) and so one might expect it to be able to explain a greater

proportion of the variance in the sample. In this respect, this study was also consistent

with that of Ryder and Southey, who also used a civilian sample and also found

Leadership facilitation and support to account for the largest proportion of variance

explained.

The consistency of the PCA results with those reported elsewhere provides some

degree of confidence in the instrument measuring organisational climate � or at least

measuring organisational climate within the terms of the concept as it is currently dealt

with by many researchers within the literature.

The question of the dimensions that are extracted when the data are factor

analysed is an important one. Is it certain that the underlying dimensions described in

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this study are the true underlying dimensions of organisational climate within the hotels

studied? Possibly not. Within the context of the various factors that have been proposed

in the literature, is it reasonable that the underlying dimensions described in this study

are valid descriptions of organisational climate within the hotels studied? Probably yes.

The answer to the first question was in the negative due to the following

problem. A factor analysis (in this case PCA) produces underlying orthogonal

dimensions that sum linearly, and which are produced from a matrix of numbers that

represent the responses of a particular group of people to a particular set of questions. If

an instrument contained no questions related to leadership, for example, then no

underlying dimension related to leadership would be extracted. Further, if an instrument

were produced with varying numbers of questions related to leadership, then the

leadership dimension, if extracted, would account for varying proportions of variance

depending on the proportion of items in the instrument that were related to leadership.

So in an absolute sense, it is impossible to know whether the instrument included the

perfect set of items to identify the true underlying dimensions.

The answer to the second question was in the positive. Although the instrument

used here had not been used before in its current form, it represented a development of

one presented earlier by Jones and James (1979). The set of questions developed in the

original version was collated following interviews, observations, and literature reviews.

This procedure identified 35 a priori scales. Each one of these �scales� was included in

the original instrument with each being represented by between 2 and 7 items. These

same a priori scales were included in the instrument used here where each scale was

represented by 2 items. In these terms, the instrument used here can be considered to

have included a broad range of concepts that have been associated with organisational

climate within the literature. Within this context, the dimensions of organisational

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climate identified here would be interpreted as a reasonable description of the

dimensions present within the hotels of this study.

8.9.3 Customer Satisfaction

Following advice given directly by a panel of industry experts, it was decided to

use customer satisfaction, as measured by employee Perception of Customer

Satisfaction. Industry advice indicated that within the hotel industry, poor levels of

customer satisfaction are first noticed by staff prior to the formal feedback on the

quality of service.

Given that this measure correlated with measures of organisational climate, the

argument might be presented that this correlation merely reflects the fact that employees

working in a better organisational climate are more likely to perceive customers as more

satisfied than will employees working in a poorer organisational climate. Regardless of

the level of satisfaction actually felt, or reported, by the customers themselves.

A number of arguments may be presented to regarding this proposal. First, a

number of studies have shown a close correspondence between employee estimates of

customer satisfaction and that reported by customers (Parkington and Schneider, 1979;

Schneider and Bowen, 1985; 1993).

Second, and more importantly, had the outcome of this study been merely the

demonstration of a correlation between organisational climate and Employee Perception

of Customer Satisfaction, then the outcome might well be open to major criticism and

concern regarding confounding variables. This study, however, shows more than this.

This study found, firstly, organisational climate (both in terms of an overall measure of

organisational climate, and in terms of multiple correlation of the dimensions of

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organisational climate) and Employee Perception of Customer Satisfaction to be

correlated. The 7 dimensions of organisational climate were found to account for 30%

of the variation in employee perception of customer satisfaction. Secondly, and

importantly, in addition Employee Perception of Customer Satisfaction was

significantly correlated with financial performance as indexed by REVPAR.

In a �worst case� the results presented here would necessarily be interpreted as

indicating that 23% of the variation in REPAR between the hotels may be explained as

a direct consequence of variation in Organisational Climate. On the other hand, the

interpretation presented here, of Organisational Climate affecting customer satisfaction

and customer satisfaction affecting REVPAR, provides a parsimonious explanation of

the process by which Organisational Climate would produce an effect on hotel financial

performance. That is the process by which variation in Organisational Climate may

result in variation in REVPAR between hotels is by its effect on customer satisfaction

which in turn produces an effect on REVPAR.

8.10 The issue of multilevel variables and the interpretation of relationships

When conducting a study that examines organisational climate and an

organisation�s performance, issues related to the level of measurement arise. Within this

thesis, the terms �Staff Level Data� and �Hotel Level Data� have been used to

differentiate 2 levels of measurement. The term �Staff Level Data� referred to scores for

which a single score existed for each employee, whereas the term �Hotel Level Data�

referred to scores for which a single score existed only for each hotel.

In one sense, organisational climate is a property of the organisation and not the

individual. Performance indicators of the organisation are also almost exclusively

expressed as properties of the organisation, and not of the individual within the

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organisation.

Although organisational climate is a property of the organisation, the way in

which a value for organisational climate is usually assigned to an organisation (or

organisational sub-unit) is to obtain measures of Psychological Climate for individuals

within the organisation and to then average the scores across individuals within the

organisation. This procedure was carried out in this study, the result of which was that

for each employee there existed a score on each of the 7 dimensions of organisational

climate and on the Composite Measure of organisational climate. For each hotel, 8 new

variables were calculated which represented the mean score across employees within

each hotel for each dimension and for the composite measure. Similarly, in this case, the

index of customer satisfaction was Employee Perception of Customer Satisfaction, and

so again the value on this variable was obtained for each of the employees. A new

variable was then produced which represented the mean Employee Perception of

Customer Satisfaction across the employees within each of the hotels. By creating these

mean scores for each of the hotels the procedure created Hotel Level Data from Staff

Level Data.

This procedure is an intuitively obvious method to provide scores on variables

for each of the 14 hotels. Variables that represent data on the Hotel Level scale are

critically important to examine whether the relationships between the variables explain

differences between the hotels. For example, it is quite possible for there to be a strong

and highly significant relationship between the Composite Measure of Organisational

Climate and Employee Perceptions of Customer Satisfaction when analysing Staff

Level Data. At the same time, it is also possible that the relationship between the Hotel

Level Data (that is the Mean Composite Measure of Organisational Climate, and the

Mean Employee Perceptions of Customer Satisfaction) to be null and the statistical

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significance zero. So demonstration of a relationship between variables using Staff

Level data is insufficient evidence to provide an explanation of variation between the

hotels.

Consequently, in the results presented here, comparisons were presented at both

the Staff Level and Hotel Level. The critical question for each of the comparisons

presented was whether, when using Hotel Level Data the relatively large proportion of

the variance in one variable was explained by another variable. Such comparisons were

critical in evaluating the efficacy of proposed relationships between variables in the

study.

For the application of structural equation modeling techniques, one needs a large

number of scores for each of the parameters in the structural model. To apply such

techniques to Structural Model B, necessitated the use of Staff Level data. In this

situation, it was necessary to generate Staff Level Data from Hotel Level Data, rather

than the reverse that had been done. This arose as the variable REVPAR only exists as a

single value for each of the hotels. To generate a value for each employee, each

employee was simply assigned the REVPAR value for the hotel within which they

worked. This enabled structural modeling techniques to be applied to provide an overall

index of the fit of the model to complement to comparisons that were presented using

correlational and regression techniques.

It would be difficult to interpret this step as in any way leading to a false

conclusion of a relationship existing between Employee Perception of Customer

Satisfaction and REVPAR, as proposed by Structural Model B. The correlation when

using Staff Level Data (r=.112, i.e. the correlation used within the structural equation

modeling procedure) actually served to underestimate the magnitude of the relationship

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between the variables. The Hotel Level (r=.479) in which 23% of the variation in

REVPAR could be accounted for by the variation in Mean Employee Perception of

Customer Satisfaction.

In all cases presented here, relationships between variables described when

analysing Staff Level Data, were only judged to be meaningful when those relationships

between variables were also represented by significant proportions of variance when

using Hotel Level Data.

8.11 Generalising results

This study is interested in generating statements that are relevant to the hotel

industry and, in particular, the Australian hotel industry. There are 2 limitations

regarding such generalisation of the results presented here. First, the study was limited

to hotels within Queensland, and second, the study was limited to four to five-star

hotels.

With regard to the first limitation, it is unlikely that this geographic limitation

will to a large extent limit the generalisation of these results to four to five-star hotels in

the rest of Australia. Within Australia, employees are highly mobile and move from

resort to city and back very easily (Timo, 1993). This characteristic alone means that the

sample of employees is representative of a group beyond the geographical limits

implied by the location of the hotels in the sample. With regards to the hotels

themselves, with the exception of two properties that are actually owned and operated

by the same company, hotel management companies ran the other hotels. In some cases

it may be argued that one would expect greater variation between different hotel chains,

than between hotels within the same chain in different states of Australia.

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With regard to the second limitation, it is not unlikely that the results reported

here will better describe the important relationships between the variables of

organisational climate, customer satisfaction, and REVPAR for hotels with four to five

star ratings than for hotels with less than four stars. Hotels with different star ratings, by

their very nature, will lead to both different expectations of the style and degree of

service and interaction between hotel staff and customers. Having said this, it awaits

further study to determine how these variables might interact to predict hotel financial

performance for hotels with different star ratings.

8.12 Future research

The outcomes of this project strongly suggest that future studies which

incorporate measures of organisational climate, hotel performance and direct measures

of customer satisfaction could provide further evidence of the importance of

organisational climate to financial performance of hotels within the Australian industry.

Further research could examine how to increase the quality of the organisational

climate, and thereby affect changes in customer satisfaction and REVPAR. There are a

number of features of the hotels that are already very positive with regard to the

generation of a good organisational climate. The staff tended to be young with a

reasonable gender mix, and are relatively well educated. One particular feature should

be examined, is the very high turnover rate of staff evidenced within the hotels. Changes

that serve to reduce the turnover rate may well serve to increase the quality of the

organisational climate.

8.13 Summary and conclusion

This study gathered data from 14 four to five star hotels in South-East

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Queensland, Australia, in an attempt to examine the nature and degree of influence

organisational climate has upon the performance of hotels. Employee Perception of

Customer Satisfaction was studied both as an index of performance and as an

intervening variable between organisational climate and financial performance as

indexed by REVPAR. The data provided a description of a, young, relatively gender

balanced, well educated and trained workforce which received relatively low levels of

financial remuneration and displayed very high levels of turnover. A new instrument

was used to measure the dimensions of organisational climate across the hotels. PCA

produced results consistent with earlier (and longer) versions of the instrument which

had been reported elsewhere. This analysis described organisational climate within the

sample to be composed of 7 underlying dimensions. The most important finding of the

study was that variation in these 7 dimensions of organisational climate accounted for

30% of the variation in Employee Perception of Customer Satisfaction. Furthermore,

that Employee Perception of Customer Satisfaction accounted for 23% of the variation

in REVPAR between the hotels. For the hotel industry represented in this sample, 30%

variation in their customer satisfaction and 23% variation in their REVPAR was directly

accounted for by their organisational climate. Organisational climate is a constant that

can be measured and improved by the application of good management practices.

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TABLE OF APPENDICES

Appendix A Organisational climate questionnaire, employee demographics, andemployee perception of operations and customer satisfaction

Appendix B Hotel Profile Instrument

Appendix C Hotel managers demographics, operation performance and perception ofcustomer satisfaction

Appendix D Staff Demographic Data and Contingency Table Analyses

Appendix E Reliability Analyses and Principal Components Analysis of EmployeeOrganisational Climate Data

Appendix F Amos Printouts of Structural Equation Modelling analyses

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Appendix A

Organisational climate questionnaire, employee demographics, and

employee perception of operations and customer satisfaction

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CENTRE FOR TOURISM AND HOTEL MANAGEMENT RESEARCH

GRIFFITH UNIVERSITY GOLD COAST CAMPUSTELEPHONE: (07) 5594 8771

PART 2 � EMPLOYEES DEMOGRAPHIC DETAILS

Please tick one box only for each question

1. Gender Male ❑Female ❑

2. Age 15-20 yrs ❑21-30 � ❑31-40 � ❑41-50 � ❑over 50 ❑

3. Education - Highest level attempted:

Secondary ❑Post-Secondary Certificate ❑❑❑❑Apprenticeship ❑Associate/Diploma ❑Degree ❑Post Graduate Diploma/Degree ❑

4. Total length of service with the hotel:

Less than 6 months ❑6 months to 1 year ❑1-2 years ❑3- 4 years ❑5 -7 years ❑7-10 years ❑over 10 years ❑

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5. Length of time in present job:

Less than 6 months ❑❑❑❑6 months to 1 year ❑1- 2 years ❑3 - 4 years ❑5 - 7 years ❑7 -10 years ❑ over 10 years ❑

6. Current gross salary:

$10-15,000 ❑$16-20,000 ❑$21-25,000 ❑$26-30,000 ❑$31-35,000 ❑$36-40,000 ❑$41-45,000 ❑$46-50,000 ❑Over $50,000 ❑

7. How would you rate the hotel�s operational performance in the following areas? Pleaserate even if you do not directly work in the areas. (Tick one box on each line)

OPERATIONAL PERFORMANCE:

Area VeryMarginal

UnderPerforming

AcceptablePerformance

GoodPerformance

OutstandingPerformance

A. Food &Beverage ❑ ❑ ❑ ❑ ❑

B. Rooms ❑ ❑ ❑ ❑ ❑

C. Overall ❑ ❑ ❑ ❑ ❑

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8. How would you rate the hotel�s performance in satisfying customers in the followingareas? Please rate even if you do not directly work in the areas. (Tick one box on each line)

CUSTOMER SATISFACTION:

Area VeryLow Low Average High Extremely

High

A. Food &Beverage ❑ ❑ ❑ ❑ ❑

B. Rooms ❑ ❑ ❑ ❑ ❑

C. Overall ❑ ❑ ❑ ❑ ❑

9. Overall Performance Rating. Please take into account all factors that affected

performance both internally and externally. (Tick the appropriate response)

OVERALL PERFORMANCE:

1-Poor to 5-Outstanding

1❑ 2❑ 3❑ 4❑ 5❑

10. Is your position? Full time ❑Part time ❑Casual ❑

11. Average hours worked per week: > 10 ❑11 � 15 ❑16 � 20 ❑21 � 30 ❑31 � 35 ❑36 � 40 ❑41 � 45 ❑46 � 50 ❑50 + ❑

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12. When did you last take part in a formal education or training session (in-house orexternal)?

In the last 3 months ❑3 to 6 months ❑6 to 12 months ❑1 to 2 years ❑2 to 3 years ❑4 to 5 years ❑5 years or more ❑

13. Do you feel that you need to undertake additional education or training for yourpresent position?

Yes ❑No ❑❑❑❑

14. Please indicate the department in which you work:

Food and Beverage Service ❑ Kitchen & Stewarding ❑

Front Office & Reservation5s ❑ Housekeeping & Linen Room ❑

Purchasing, Stores & Accounts ❑ Marketing, Sales & Public Relations ❑

Administration ❑ Engineering, Maintenance & Security ❑

Conference & Convention ❑ Concierge & Porters ❑

Casino Operations ❑ Casino Administration ❑

❑ ❑

❑ ❑

❑ ❑

Other please state: ___________________________________________________________________

Are there any other departmental areas that you would like included?: __________________________

Many thanks for your time and trouble. Please seal questionnaire in the envelope provided

and place it in the box provided at the human resources office. Alternatively you may mail it

directly to the university.

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CENTRE FOR TOURISM AND HOTEL MANAGEMENT RESEARCH

GRIFFITH UNIVERSITY GOLD COAST CAMPUSTELEPHONE: (07) 5594 8771

PART 1 � EMPLOYEE OPINION SURVEY

QUESTION 1

1 2 3 4 5 6 7

Strongly Disagree Tend to Unsure Tend to Agree StronglyDisagree Disagree Agree Agree

Please circle how strongly you agree or disagree according to the above scale with each of thefollowing statements:

Circle the most appropriate response: SD D TD U TA A SA

a. Opportunities for independent thought and action exist in your job. 1 2 3 4 5 6 7

b. Your job requires a high level of skill and training. 1 2 3 4 5 6 7

c. You are required to meet rigid standards of quality in your work. 1 2 3 4 5 6 7

d. Staff members generally trust their supervisors. 1 2 3 4 5 6 7

e. The methods of your work are kept up-to-date. 1 2 3 4 5 6 7

f. You are required to perform tasks on your job which you considerrelatively unimportant or unnecessary. 1 2 3 4 5 6 7

g. You are able to get the money, supplies, equipment, etc., your workgroup needs to do its work well. 1 2 3 4 5 6 7

h. Your supervisor is friendly and easy to approach. 1 2 3 4 5 6 7

i. Your supervisor offers new ideas for job-related problems. 1 2 3 4 5 6 7

j. A spirit of co-operation exists in your work group. 1 2 3 4 5 6 7

k. Your job responsibilities are clearly defined. 1 2 3 4 5 6 7

l. Responsibility is assigned so that individuals have authority withintheir own area. 1 2 3 4 5 6 7

m. Dealing with other people is part of your job. 1 2 3 4 5 6 7

n. Your supervisor encourages the people who work for him or herto exchange ideas and opinions. 1 2 3 4 5 6 7

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QUESTION 2

1 2 3 4 5 6 7

Strongly Disagree Tend to Unsure Tend to AgreeStronglyDisagree Disagree Agree Agree

Please circle how strongly you agree or disagree according to the above scale with each of the followingstatements:

Circle the most appropriate response: SD D TD U TA A SA

a. Staff members generally trust their managers. 1 2 3 4 5 6 7

b. You are given advance information about changes(policies, procedures, etc.) which might affect you. 1 2 3 4 5 6 7

c. The hotel�s policies are consistently applied to all staffmembers. 1 2 3 4 5 6 7

d. You have opportunities to complete the work you start. 1 2 3 4 5 6 7

e. Procedures are designed so that resources (equipment, people, time,etc.) are used efficiently. 1 2 3 4 5 6 7

f. Your supervisor is attentive to what you say. 1 2 3 4 5 6 7

g. Your supervisor provides the help you need to schedule your workahead of time. 1 2 3 4 5 6 7

h. There is friction in your work group. 1 2 3 4 5 6 7

i. You have opportunities to learn worth while new skills andknowledge in your job. 1 2 3 4 5 6 7

j. New staff members get the on-the-job training they need. 1 2 3 4 5 6 7

k. There is variety in your job. 1 2 3 4 5 6 7

l. Your hours of work are irregular. 1 2 3 4 5 6 7

m. Everything in this hotel is checked, individual judgementis not trusted. 1 2 3 4 5 6 7

n. Being liked is important in getting a promotion. 1 2 3 4 5 6 7

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QUESTION 3

1 2 3 4 5 6 7

Strongly Disagree Tend to Unsure Tend to Agree StronglyDisagree Disagree Agree Agree

Please circle how strongly you agree or disagree according to the above scale with each of thefollowing statements:

Circle the most appropriate response: SD D TD U TA A SA

a. You have good information on where you stand and how yourperformance is evaluated. 1 2 3 4 5 6 7

b. Your supervisor emphasises high standards of performance. 1 2 3 4 5 6 7

c. The ideas and suggestions of staff members are paid attention to. 1 2 3 4 5 6 7

d. You have the opportunity to do a number of different things in yourjob. 1 2 3 4 5 6 7

e. Your supervisor sets an example by working hard himself/herself. 1 2 3 4 5 6 7

f. A friendly atmosphere prevails among most of the membersof your work group. 1 2 3 4 5 6 7

g. Hotel �politics� count in getting a promotion. 1 2 3 4 5 6 7

h. People act as though everyone must be watched or theywill slack off. 1 2 3 4 5 6 7

i. Supervisors generally know what is going on in their work groups. 1 2 3 4 5 6 7

j. You are aware of how well your workgroup is meetingits objectives. 1 2 3 4 5 6 7

k. Your job demands precision. 1 2 3 4 5 6 7

l. Members of your work group trust each other. 1 2 3 4 5 6 7

m. The hotel has a good image to outsiders. 1 2 3 4 5 6 7

n. Working in this hotel is beneficial to your career. 1 2 3 4 5 6 7

o. You have opportunities to make full use of your knowledge andskills in your job. 1 2 3 4 5 6 7

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QUESTION 4

1 2 3 4 5 6 7

Strongly Disagree Tend to Unsure Tend to Agree StronglyDisagree Disagree Agree Agree

Please circle how strongly you agree or disagree according to the above scale with each of thefollowing statements:

Circle the most appropriate response: SD D TD U TA A SA

a. Communication is hindered by following chain of command rules. 1 2 3 4 5 6 7

b. Your supervisor encourages the people who work for them to workas a team. 1 2 3 4 5 6 7

c. It is possible to get accurate information on the policies andobjectives of this hotel. 1 2 3 4 5 6 7

d. The hotel strives to do a better job than other hotelsof the same type. 1 2 3 4 5 6 7

e. The hotel emphasises personal growth and development. 1 2 3 4 5 6 7

f. Managers keep well informed about the needs and problems ofemployees. 1 2 3 4 5 6 7

g. Discipline in this hotel is maintained consistently. 1 2 3 4 5 6 7

h. Your manager is successful in his dealings with higher levels ofmanagement. 1 2 3 4 5 6 7

i. The objectives of the hotel are clearly defined. 1 2 3 4 5 6 7

j. There is conflict (rivalry and hostility) between your departmentand other departments of the hotel. 1 2 3 4 5 6 7

k. Your work is important. 1 2 3 4 5 6 7

l. The way your work group is organised hinders the efficient conductof work. 1 2 3 4 5 6 7

m. This hotel is concerned with assisting the local community. 1 2 3 4 5 6 7

n. Things in this hotel seem to happen contrary to rules andregulations. 1 2 3 4 5 6 7

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QUESTION 5

1 2 3 4 5 6 7

Strongly Disagree Tend to Unsure Tend to Agree StronglyDisagree Disagree Agree Agree

Please circle how strongly you agree or disagree according to the above scale with each of thefollowing statements:

Circle the most appropriate response: SD D TD U TA A SA

a. In this hotel about the only source of information on importantmatters is the grapevine (rumour). 1 2 3 4 5 6 7

b. In this hotel, things are planned so that everyone is gettingin each other�s way. 1 2 3 4 5 6 7

c. Under most circumstances I would recommend this hotel to aprospective staff member. 1 2 3 4 5 6 7

d. Most of the personnel in my department would not want to changeto another department. 1 2 3 4 5 6 7

e. Most members of my work group take pride in their jobs. 1 2 3 4 5 6 7

f. Generally there are friendly and cooperative relationships between thedifferent department of the hotel. 1 2 3 4 5 6 7

g. My department, compared to all other department in the hotelwould be one of the most productive. 1 2 3 4 5 6 7

h. Excessive rules and regulations interfere with how well I am able todo my job. 1 2 3 4 5 6 7

i. Overall, I think my immediate supervisor is doing a good job. 1 2 3 4 5 6 7

j. Compared with other works groups, my work group is under much lesspressure to produce. 1 2 3 4 5 6 7

k. In my job, the opportunities to get to know people are limited. 1 2 3 4 5 6 7

l. Compared to all other similar works groups in the hotel, my groupwould be the most productive. 1 2 3 4 5 6 7

m. Your immediate supervisor is successful in dealing with higherlevels of management. 1 2 3 4 5 6 7

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Appendix B

Hotel Profile Instrument

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CENTRE FOR TOURISM AND HOTEL MANAGEMENT RESEARCH

GRIFFITH UNIVERSITY GOLD COAST CAMPUSTELEPHONE: (07) 5594 8771

HOTEL PROFILE

Please use the 1996/1997 financial year as the basis for your answers:

1. What is your annual room occupancy level in percentage terms?_________________%

2. What is your annual average daily room rate?$_________________

3. What is your rack rate for a standard room? $_________________

4. What is your accommodation business mix?

F.I.T %Conferences %Group Tour %Corporate %Government %Leisure %

100%

5. What is your revenue mix?Rooms %F & B %Other %

100%

6. What is your staffing level? (please include management)

Peak LowFull TimePart Time

Casual

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047. What is your annual staff turnover percentage? _________________%

8. What is your wage cost to revenue percentage? _________________%

9. Which of the following organisational structures and levels best represents your hotel?(Please tick)

General Manager General Manager General Manager Other (please state)Executive Committee Executive Committee Executive Committee_______________Department Heads Senior Department Heads Department Heads_______________Supervisors Other Department Heads Operational Staff_______________Operational Staff Assistant Dept Heads_______________

Supervisors_______________

Assistant Supervisors_______________

Operational Staff_______________

A ❑ B ❑ C ❑ D ❑

10. What external factors (beyond your control) affected your operational performancelast year?

__________________________________________________________________

__________________________________________________________________

PLEASE ATTACH ADDITIONAL NOTES IF REQUIRED

11. Were there any special internal circumstances that affected your operationalperformance last year?

__________________________________________________________________

__________________________________________________________________

PLEASE ATTACH ADDITIONAL NOTES IF REQUIRED

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Appendix C

Hotel managers demographics, operation performance and perception of

customer satisfaction

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CENTRE FOR TOURISM AND HOTEL MANAGEMENT RESEARCH

GRIFFITH UNIVERSITY GOLD COAST CAMPUSTELEPHONE: (07) 5594 8771

GENERAL MANAGER, SENIOR EXECUTIVESAND DEPARTMENT HEADS ONLY

PART 1 - DEMOGRAPHIC DETAILS

Please tick one box only for each question

1. Gender: Male ❑Female ❑

2. Age: 15-24yrs ❑25-34 � ❑35-44 ❑45-54 � ❑55-64 ❑65+ ❑

3. Education - Highest level attempted (not necessarily completed):

Primary ❑Secondary ❑Post-Secondary Certificate ❑Apprenticeship ❑Associate/Diploma ❑Degree ❑Post Graduate Diploma/Degree ❑

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4. Total length of service with the hotel:

0-2 yrs ❑3-5 yrs ❑6-8 � ❑9-11 � ❑12-14 � ❑15-17 � ❑

5. Length of time in present job:

0-2yrs ❑3-5 yrs ❑6-8 � ❑9-11 � ❑12-14 � ❑15-17 � ❑

6. Current gross salary: $30 � 39000 ❑$40 � 49000 ❑$50 � 59000 ❑$60 � 69000 ❑$70 � 79000 ❑$80 � 89000 ❑$90 � 99000 ❑

over $100,000 ❑

7. Do you receive additional benefits?

Yes ❑No ❑

8. Please give a dollar value of the benefits: ___________________

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9. When did you last undertake a formal training or education program (in house orexternal?

0 months to 1 year ❑1 to 2 years ❑2 to 3 years ❑3 to 4 years ❑4 to 5 years ❑5 to 6 years ❑6 to 7 years ❑

10. Do you feel that you need to undertake additional education or training for yourpresent position?

Yes ❑No ❑

If yes please indicate what education or training would be most appropriate:

_____________________________________________________________________

_____________________________________________________________________

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PART 2 � PERFORMANCE INDICATORS

Please rate the hotels performance in the following areas (tick the appropriate box):

It is important that you use your judgement alone in this rating.

11. FINANCIAL PERFORMANCE

Revenue UnderBudget

MarginallyUnderBudget

On BudgetMarginally

AboveBudget

Well AboveBudget

A. Food &Beverage ❑ ❑ ❑ ❑ ❑

B. Rooms ❑ ❑ ❑ ❑ ❑

C. Overall ❑ ❑ ❑ ❑ ❑

12. FINANCIAL PERFORMANCE

GrossOperating

Profit

UnderBudget

MarginallyUnderBudget

On Budget MarginallyAbove Budget

Well AboveBudget

A. Food &Beverage ❑ ❑ ❑ ❑ ❑

B. Rooms ❑ ❑ ❑ ❑ ❑

C. Overall ❑ ❑ ❑ ❑ ❑

13. OPERATIONAL PERFORMANCE

Area VeryMarginal

UnderPerforming

AcceptablePerformance

GoodPerformance

OutstandingPerformance

A. Food &Beverage ❑ ❑ ❑ ❑ ❑

B. Rooms ❑ ❑ ❑ ❑ ❑

C. Overall ❑ ❑ ❑ ❑ ❑

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14. CUSTOMER SATISFACTION

Area VeryLow Low Average High Extremely

High

A. Food &Beverage ❑ ❑ ❑ ❑ ❑

B. Rooms ❑ ❑ ❑ ❑ ❑

C. Overall ❑ ❑ ❑ ❑ ❑

15. Please indicate any specific techniques used to ascertain customer satisfaction:

In room comment cards ❑Restaurant comment cards ❑Staff incident/compliment reports ❑Own telephone survey of guests ❑Market research survey ❑Focus group ❑

Other (please state) ______________________________

16. Overall Performance Rating

Please take into account all factors that affected performance both internally and

externally (tick your response)

1-Poor to 5-Outstanding

1 ❑ 2 ❑ 3 ❑ 4 ❑ 5 ❑

17. Who do you consider to be your main competitors?

Please place in the collection box in the human resources office at your earliest convenience.

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Appendix D

Staff Demographic Data and Contingency Table Analyses

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HOTEL hotel code by GENDER gender

GENDER Page 1 of 1 Count | Col Pct |male female | Row | 1 | 2 | TotalHOTEL --------+--------+--------+ 1 | 290 | 260 | 550 | 34.7 | 28.7 | 31.6 +--------+--------+ 3 | 55 | 66 | 121 | 6.6 | 7.3 | 7.0 +--------+--------+ 4 | 128 | 146 | 274 | 15.3 | 16.1 | 15.7 +--------+--------+ 5 | 29 | 25 | 54 | 3.5 | 2.8 | 3.1 +--------+--------+ 6 | 45 | 42 | 87 | 5.4 | 4.6 | 5.0 +--------+--------+ 7 | 20 | 27 | 47 | 2.4 | 3.0 | 2.7 +--------+--------+ 8 | 20 | 29 | 49 | 2.4 | 3.2 | 2.8 +--------+--------+ 9 | 9 | 37 | 46 | 1.1 | 4.1 | 2.6 +--------+--------+ 10 | 15 | 24 | 39 | 1.8 | 2.6 | 2.2 +--------+--------+ 11 | 45 | 41 | 86 | 5.4 | 4.5 | 4.9 +--------+--------+ 12 | 39 | 51 | 90 | 4.7 | 5.6 | 5.2 +--------+--------+ 13 | 14 | 18 | 32 | 1.7 | 2.0 | 1.8 +--------+--------+ 14 | 89 | 103 | 192 | 10.7 | 11.4 | 11.0 +--------+--------+ 15 | 37 | 37 | 74 | 4.4 | 4.1 | 4.3 +--------+--------+ Column 835 906 1741 Total 48.0 52.0 100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 26.49008 13 .01460Likelihood Ratio 27.73679 13 .00985Mantel-Haenszel test for 4.09789 1 .04294 linear association

Minimum Expected Frequency - 15.348

Number of Missing Observations: 51

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HOTEL hotel code by AGE age

AGE Page 1 of 1 Count | Col Pct |15-24yrs 24-34yrs 35-44yrs 45-54yrs 55-64yrs 65+yrs | Row | 1 | 2 | 3 | 4 | 5 | 6 | TotalHOTEL --------+--------+--------+--------+--------+--------+--------+ 1 | 176 | 174 | 105 | 71 | 18 | 1 | 545 | 33.3 | 28.9 | 30.9 | 33.5 | 40.0 | 33.3 | 31.5 +--------+--------+--------+--------+--------+--------+ 3 | 43 | 46 | 18 | 10 | | | 117 | 8.1 | 7.6 | 5.3 | 4.7 | | | 6.8 +--------+--------+--------+--------+--------+--------+ 4 | 64 | 96 | 57 | 48 | 10 | | 275 | 12.1 | 15.9 | 16.8 | 22.6 | 22.2 | | 15.9 +--------+--------+--------+--------+--------+--------+ 5 | 13 | 26 | 10 | 3 | 2 | | 54 | 2.5 | 4.3 | 2.9 | 1.4 | 4.4 | | 3.1 +--------+--------+--------+--------+--------+--------+ 6 | 39 | 27 | 12 | 8 | 1 | | 87 | 7.4 | 4.5 | 3.5 | 3.8 | 2.2 | | 5.0 +--------+--------+--------+--------+--------+--------+ 7 | 16 | 14 | 13 | 3 | | | 46 | 3.0 | 2.3 | 3.8 | 1.4 | | | 2.7 +--------+--------+--------+--------+--------+--------+ 8 | 20 | 19 | 4 | 4 | 1 | | 48 | 3.8 | 3.2 | 1.2 | 1.9 | 2.2 | | 2.8 +--------+--------+--------+--------+--------+--------+ 9 | 14 | 19 | 7 | 6 | | 1 | 47 | 2.7 | 3.2 | 2.1 | 2.8 | | 33.3 | 2.7 +--------+--------+--------+--------+--------+--------+ 10 | 8 | 19 | 11 | 1 | | | 39 | 1.5 | 3.2 | 3.2 | .5 | | | 2.3 +--------+--------+--------+--------+--------+--------+ 11 | 29 | 29 | 16 | 11 | 2 | | 87 | 5.5 | 4.8 | 4.7 | 5.2 | 4.4 | | 5.0 +--------+--------+--------+--------+--------+--------+ 12 | 17 | 28 | 28 | 13 | 4 | | 90 | 3.2 | 4.6 | 8.2 | 6.1 | 8.9 | | 5.2 +--------+--------+--------+--------+--------+--------+ 13 | 11 | 11 | 4 | 4 | 2 | | 32 | 2.1 | 1.8 | 1.2 | 1.9 | 4.4 | | 1.8 +--------+--------+--------+--------+--------+--------+ 14 | 66 | 71 | 28 | 20 | 4 | 1 | 190 | 12.5 | 11.8 | 8.2 | 9.4 | 8.9 | 33.3 | 11.0 +--------+--------+--------+--------+--------+--------+ 15 | 12 | 24 | 27 | 10 | 1 | | 74 | 2.3 | 4.0 | 7.9 | 4.7 | 2.2 | | 4.3 +--------+--------+--------+--------+--------+--------+ Column 528 603 340 212 45 3 1731 Total 30.5 34.8 19.6 12.2 2.6 .2 100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 108.65497 65 .00056Likelihood Ratio 108.98016 65 .00052Mantel-Haenszel test for .02426 1 .87622 linear association

Minimum Expected Frequency - .055Cells with Expected Frequency < 5 - 28 OF 84 ( 33.3%)

Number of Missing Observations: 61

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HOTEL hotel code by EDUCAT education level

EDUCAT Page 1 of 1 Count | Col Pct |secondar post sec apprenti assocait degree post gra |y ondary ceship e diplom d Row | 1 | 2 | 3 | 4 | 5 | 6 | TotalHOTEL --------+--------+--------+--------+--------+--------+--------+ 1 | 200 | 82 | 81 | 75 | 82 | 18 | 538 | 33.3 | 31.4 | 34.8 | 26.9 | 28.9 | 34.0 | 31.4 +--------+--------+--------+--------+--------+--------+ 3 | 51 | 11 | 22 | 19 | 11 | 4 | 118 | 8.5 | 4.2 | 9.4 | 6.8 | 3.9 | 7.5 | 6.9 +--------+--------+--------+--------+--------+--------+ 4 | 106 | 39 | 36 | 40 | 46 | 4 | 271 | 17.6 | 14.9 | 15.5 | 14.3 | 16.2 | 7.5 | 15.8 +--------+--------+--------+--------+--------+--------+ 5 | 15 | 9 | 9 | 12 | 5 | 2 | 52 | 2.5 | 3.4 | 3.9 | 4.3 | 1.8 | 3.8 | 3.0 +--------+--------+--------+--------+--------+--------+ 6 | 34 | 11 | 8 | 15 | 19 | 1 | 88 | 5.7 | 4.2 | 3.4 | 5.4 | 6.7 | 1.9 | 5.1 +--------+--------+--------+--------+--------+--------+ 7 | 10 | 4 | 8 | 10 | 11 | 2 | 45 | 1.7 | 1.5 | 3.4 | 3.6 | 3.9 | 3.8 | 2.6 +--------+--------+--------+--------+--------+--------+ 8 | 17 | 6 | 5 | 9 | 10 | 2 | 49 | 2.8 | 2.3 | 2.1 | 3.2 | 3.5 | 3.8 | 2.9 +--------+--------+--------+--------+--------+--------+ 9 | 21 | 9 | 2 | 5 | 7 | 1 | 45 | 3.5 | 3.4 | .9 | 1.8 | 2.5 | 1.9 | 2.6 +--------+--------+--------+--------+--------+--------+ 10 | 17 | 5 | 3 | 4 | 7 | 3 | 39 | 2.8 | 1.9 | 1.3 | 1.4 | 2.5 | 5.7 | 2.3 +--------+--------+--------+--------+--------+--------+ 11 | 24 | 17 | 8 | 16 | 17 | 4 | 86 | 4.0 | 6.5 | 3.4 | 5.7 | 6.0 | 7.5 | 5.0 +--------+--------+--------+--------+--------+--------+ 12 | 26 | 16 | 16 | 17 | 11 | 2 | 88 | 4.3 | 6.1 | 6.9 | 6.1 | 3.9 | 3.8 | 5.1 +--------+--------+--------+--------+--------+--------+ 13 | 6 | 9 | 3 | 7 | 3 | 3 | 31 | 1.0 | 3.4 | 1.3 | 2.5 | 1.1 | 5.7 | 1.8 +--------+--------+--------+--------+--------+--------+ 14 | 49 | 30 | 17 | 40 | 44 | 6 | 186 | 8.2 | 11.5 | 7.3 | 14.3 | 15.5 | 11.3 | 10.9 +--------+--------+--------+--------+--------+--------+ 15 | 25 | 13 | 15 | 10 | 11 | 1 | 75 | 4.2 | 5.0 | 6.4 | 3.6 | 3.9 | 1.9 | 4.4 +--------+--------+--------+--------+--------+--------+ Column 601 261 233 279 284 53 1711 Total 35.1 15.3 13.6 16.3 16.6 3.1 100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 88.74589 65 .02685Likelihood Ratio 89.06722 65 .02546Mantel-Haenszel test for 9.25581 1 .00235 linear association

Minimum Expected Frequency - .960Cells with Expected Frequency < 5 - 13 OF 84 ( 15.5%)

Number of Missing Observations: 81

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HOTEL hotel code by LENGTH_S length of service

LENGTH_S Page 1 of 1 Count | Col Pct |0-2yrs 3-5yrs 6-8yrs 9-11yrs 12-14yrs 15-17yrs | Row | 1 | 2 | 3 | 4 | 5 | 6 | TotalHOTEL --------+--------+--------+--------+--------+--------+--------+ 1 | 268 | 124 | 70 | 67 | 15 | | 544 | 26.4 | 30.8 | 37.6 | 70.5 | 55.6 | | 31.3 +--------+--------+--------+--------+--------+--------+ 3 | 79 | 23 | 19 | | | | 121 | 7.8 | 5.7 | 10.2 | | | | 7.0 +--------+--------+--------+--------+--------+--------+ 4 | 152 | 78 | 44 | | | | 274 | 14.9 | 19.4 | 23.7 | | | | 15.8 +--------+--------+--------+--------+--------+--------+ 5 | 27 | 20 | 5 | 2 | 1 | | 55 | 2.7 | 5.0 | 2.7 | 2.1 | 3.7 | | 3.2 +--------+--------+--------+--------+--------+--------+ 6 | 58 | 22 | 7 | 1 | | | 88 | 5.7 | 5.5 | 3.8 | 1.1 | | | 5.1 +--------+--------+--------+--------+--------+--------+ 7 | 40 | 5 | | 1 | | 1 | 47 | 3.9 | 1.2 | | 1.1 | | 9.1 | 2.7 +--------+--------+--------+--------+--------+--------+ 8 | 46 | 1 | 2 | | | | 49 | 4.5 | .2 | 1.1 | | | | 2.8 +--------+--------+--------+--------+--------+--------+ 9 | 32 | 9 | 5 | | | | 46 | 3.1 | 2.2 | 2.7 | | | | 2.6 +--------+--------+--------+--------+--------+--------+ 10 | 38 | | 1 | | | | 39 | 3.7 | | .5 | | | | 2.2 +--------+--------+--------+--------+--------+--------+ 11 | 59 | 28 | | | | | 87 | 5.8 | 6.9 | | | | | 5.0 +--------+--------+--------+--------+--------+--------+ 12 | 47 | 22 | 9 | 11 | | 1 | 90 | 4.6 | 5.5 | 4.8 | 11.6 | | 9.1 | 5.2 +--------+--------+--------+--------+--------+--------+ 13 | 19 | 5 | 1 | 2 | 1 | 4 | 32 | 1.9 | 1.2 | .5 | 2.1 | 3.7 | 36.4 | 1.8 +--------+--------+--------+--------+--------+--------+ 14 | 122 | 36 | 8 | 11 | 10 | 5 | 192 | 12.0 | 8.9 | 4.3 | 11.6 | 37.0 | 45.5 | 11.0 +--------+--------+--------+--------+--------+--------+ 15 | 30 | 30 | 15 | | | | 75 | 2.9 | 7.4 | 8.1 | | | | 4.3 +--------+--------+--------+--------+--------+--------+ Column 1017 403 186 95 27 11 1739 Total 58.5 23.2 10.7 5.5 1.6 .6 100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 364.57871 65 .00000Likelihood Ratio 371.23288 65 .00000Mantel-Haenszel test for 7.96189 1 .00478 linear association

Minimum Expected Frequency - .202Cells with Expected Frequency < 5 - 40 OF 84 ( 47.6%)

Number of Missing Observations: 53

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HOTEL hotel code by LENGTH_J length of job

LENGTH_J Page 1 of 1 Count | Col Pct |0-2yrs 3-5yrs 6-8yrs 9-11yrs 12-14yrs 15-17yrs | Row | 1 | 2 | 3 | 4 | 5 | 6 | TotalHOTEL --------+--------+--------+--------+--------+--------+--------+ 1 | 312 | 118 | 49 | 49 | 11 | | 539 | 27.5 | 33.0 | 40.2 | 62.0 | 57.9 | | 31.2 +--------+--------+--------+--------+--------+--------+ 3 | 85 | 23 | 11 | | 1 | | 120 | 7.5 | 6.4 | 9.0 | | 5.3 | | 7.0 +--------+--------+--------+--------+--------+--------+ 4 | 173 | 70 | 23 | 3 | 1 | 2 | 272 | 15.3 | 19.6 | 18.9 | 3.8 | 5.3 | 14.3 | 15.8 +--------+--------+--------+--------+--------+--------+ 5 | 29 | 17 | 2 | 3 | 1 | 1 | 53 | 2.6 | 4.7 | 1.6 | 3.8 | 5.3 | 7.1 | 3.1 +--------+--------+--------+--------+--------+--------+ 6 | 60 | 22 | 4 | 1 | | | 87 | 5.3 | 6.1 | 3.3 | 1.3 | | | 5.0 +--------+--------+--------+--------+--------+--------+ 7 | 40 | 4 | 1 | 1 | | 1 | 47 | 3.5 | 1.1 | .8 | 1.3 | | 7.1 | 2.7 +--------+--------+--------+--------+--------+--------+ 8 | 46 | | 1 | 2 | | | 49 | 4.1 | | .8 | 2.5 | | | 2.8 +--------+--------+--------+--------+--------+--------+ 9 | 37 | 4 | 4 | 1 | | | 46 | 3.3 | 1.1 | 3.3 | 1.3 | | | 2.7 +--------+--------+--------+--------+--------+--------+ 10 | 35 | 1 | | 2 | | | 38 | 3.1 | .3 | | 2.5 | | | 2.2 +--------+--------+--------+--------+--------+--------+ 11 | 66 | 20 | 1 | | | | 87 | 5.8 | 5.6 | .8 | | | | 5.0 +--------+--------+--------+--------+--------+--------+ 12 | 56 | 19 | 8 | 7 | | | 90 | 4.9 | 5.3 | 6.6 | 8.9 | | | 5.2 +--------+--------+--------+--------+--------+--------+ 13 | 21 | 3 | | 3 | 1 | 3 | 31 | 1.9 | .8 | | 3.8 | 5.3 | 21.4 | 1.8 +--------+--------+--------+--------+--------+--------+ 14 | 137 | 32 | 7 | 7 | 4 | 5 | 192 | 12.1 | 8.9 | 5.7 | 8.9 | 21.1 | 35.7 | 11.1 +--------+--------+--------+--------+--------+--------+ 15 | 37 | 25 | 11 | | | 2 | 75 | 3.3 | 7.0 | 9.0 | | | 14.3 | 4.3 +--------+--------+--------+--------+--------+--------+ Column 1134 358 122 79 19 14 1726 Total 65.7 20.7 7.1 4.6 1.1 .8 100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 212.87162 65 .00000Likelihood Ratio 233.03936 65 .00000Mantel-Haenszel test for 5.29004 1 .02145 linear association

Minimum Expected Frequency - .251Cells with Expected Frequency < 5 - 43 OF 84 ( 51.2%)

Number of Missing Observations: 66

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HOTEL hotel code by GRS_SAL current gross salaryCount |$0-5000 $6-10,00 $11-15,0 $16-20,0 $21-25,0 $26-30,0 $31-35,0 $36-40,0 $41-45,0 $46-50,0 over $50 Col Pct | 0 00 00 00 00 00 00 00 00 ,000 Row | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | TotalHOTEL --------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 1 | 16 | 33 | 48 | 76 | 166 | 106 | 41 | 24 | 10 | | 2 | 522 | 20.0 | 35.1 | 30.8 | 32.8 | 31.3 | 31.3 | 28.3 | 45.3 | 45.5 | | 13.3 | 31.3 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 3 | | 4 | 6 | 16 | 46 | 24 | 16 | 3 | 1 | | 1 | 117 | | 4.3 | 3.8 | 6.9 | 8.7 | 7.1 | 11.0 | 5.7 | 4.5 | | 6.7 | 7.0 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 4 | 18 | 20 | 36 | 30 | 72 | 56 | 17 | 6 | 2 | | 4 | 261 | 22.5 | 21.3 | 23.1 | 12.9 | 13.6 | 16.5 | 11.7 | 11.3 | 9.1 | | 26.7 | 15.6 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 5 | 4 | 1 | 3 | 3 | 11 | 14 | 11 | 3 | | | | 50 | 5.0 | 1.1 | 1.9 | 1.3 | 2.1 | 4.1 | 7.6 | 5.7 | | | | 3.0 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 6 | 9 | 4 | 5 | 11 | 32 | 13 | 6 | 1 | | | | 81 | 11.3 | 4.3 | 3.2 | 4.7 | 6.0 | 3.8 | 4.1 | 1.9 | | | | 4.9 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 7 | 4 | 1 | 3 | 7 | 9 | 15 | 6 | | 1 | | | 46 | 5.0 | 1.1 | 1.9 | 3.0 | 1.7 | 4.4 | 4.1 | | 4.5 | | | 2.8 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 8 | 3 | 6 | 2 | 3 | 13 | 13 | 6 | | | | | 46 | 3.8 | 6.4 | 1.3 | 1.3 | 2.4 | 3.8 | 4.1 | | | | | 2.8 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 9 | 7 | 1 | 7 | 7 | 12 | 8 | | 1 | | | 1 | 44 | 8.8 | 1.1 | 4.5 | 3.0 | 2.3 | 2.4 | | 1.9 | | | 6.7 | 2.6 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 10 | 2 | 2 | 2 | 3 | 19 | 6 | 1 | 1 | | | | 36 | 2.5 | 2.1 | 1.3 | 1.3 | 3.6 | 1.8 | .7 | 1.9 | | | | 2.2 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 11 | 8 | 1 | 7 | 17 | 33 | 13 | 5 | 1 | | | 1 | 86 | 10.0 | 1.1 | 4.5 | 7.3 | 6.2 | 3.8 | 3.4 | 1.9 | | | 6.7 | 5.2 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 12 | | 3 | 4 | 11 | 33 | 16 | 15 | 6 | | | | 88 | | 3.2 | 2.6 | 4.7 | 6.2 | 4.7 | 10.3 | 11.3 | | | | 5.3 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 13 | | 1 | | 4 | 8 | 17 | 1 | | | | | 31 | | 1.1 | | 1.7 | 1.5 | 5.0 | .7 | | | | | 1.9 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 14 | 6 | 14 | 24 | 29 | 54 | 30 | 13 | 4 | 8 | 1 | 6 | 189 | 7.5 | 14.9 | 15.4 | 12.5 | 10.2 | 8.8 | 9.0 | 7.5 | 36.4 | 50.0 | 40.0 | 11.3 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 15 | 3 | 3 | 9 | 15 | 23 | 8 | 7 | 3 | | 1 | | 72 | 3.8 | 3.2 | 5.8 | 6.5 | 4.3 | 2.4 | 4.8 | 5.7 | | 50.0 | | 4.3 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ Column 80 94 156 232 531 339 145 53 22 2 15 1669 Total 4.8 5.6 9.3 13.9 31.8 20.3 8.7 3.2 1.3 .1 .9 100.0

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Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 244.13788 130 .00000Likelihood Ratio 245.77581 130 .00000Mantel-Haenszel test for .00172 1 .96692 linear association

Minimum Expected Frequency - .037Cells with Expected Frequency < 5 - 85 OF 154 ( 55.2%)

Number of Missing Observations: 123

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HOTEL hotel code by HOURS hours worked per week Count | Col Pct |0-5hrs 6-10hrs 11-15hrs 16-20hrs 21-25hrs 26-30hrs 31-35hrs 36-40hrs 41-45hrs 46-50hrs over 50 | hrs Row | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | TotalHOTEL --------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 1 | 1 | 7 | 7 | 35 | 31 | 58 | 54 | 271 | 45 | 22 | 10 | 541 | 12.5 | 21.2 | 18.4 | 35.7 | 27.0 | 34.9 | 40.3 | 35.4 | 22.5 | 25.0 | 12.2 | 31.3 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 3 | | 1 | 2 | 3 | 6 | 18 | 17 | 40 | 14 | 9 | 9 | 119 | | 3.0 | 5.3 | 3.1 | 5.2 | 10.8 | 12.7 | 5.2 | 7.0 | 10.2 | 11.0 | 6.9 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 4 | 3 | 11 | 10 | 27 | 18 | 22 | 16 | 103 | 39 | 18 | 6 | 273 | 37.5 | 33.3 | 26.3 | 27.6 | 15.7 | 13.3 | 11.9 | 13.5 | 19.5 | 20.5 | 7.3 | 15.8 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 5 | 1 | | 2 | 2 | 2 | 3 | | 26 | 12 | 3 | 3 | 54 | 12.5 | | 5.3 | 2.0 | 1.7 | 1.8 | | 3.4 | 6.0 | 3.4 | 3.7 | 3.1 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 6 | | 2 | 1 | 3 | 11 | 6 | 7 | 41 | 11 | 3 | 2 | 87 | | 6.1 | 2.6 | 3.1 | 9.6 | 3.6 | 5.2 | 5.4 | 5.5 | 3.4 | 2.4 | 5.0 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 7 | | 1 | 1 | 1 | 2 | 4 | 1 | 17 | 12 | 5 | 2 | 46 | | 3.0 | 2.6 | 1.0 | 1.7 | 2.4 | .7 | 2.2 | 6.0 | 5.7 | 2.4 | 2.7 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 8 | | | 1 | 1 | 6 | 4 | 3 | 19 | 5 | 5 | 5 | 49 | | | 2.6 | 1.0 | 5.2 | 2.4 | 2.2 | 2.5 | 2.5 | 5.7 | 6.1 | 2.8 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 9 | | 1 | 3 | 1 | 4 | 7 | 2 | 20 | 6 | | 2 | 46 | | 3.0 | 7.9 | 1.0 | 3.5 | 4.2 | 1.5 | 2.6 | 3.0 | | 2.4 | 2.7 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 10 | 1 | 1 | 1 | 4 | | 2 | 1 | 19 | 3 | 1 | 4 | 37 | 12.5 | 3.0 | 2.6 | 4.1 | | 1.2 | .7 | 2.5 | 1.5 | 1.1 | 4.9 | 2.1 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 11 | | 1 | 2 | 5 | 2 | 7 | 5 | 38 | 18 | 3 | 6 | 87 | | 3.0 | 5.3 | 5.1 | 1.7 | 4.2 | 3.7 | 5.0 | 9.0 | 3.4 | 7.3 | 5.0 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 12 | | 2 | 1 | 1 | 7 | 3 | 5 | 52 | 9 | 8 | 2 | 90 | | 6.1 | 2.6 | 1.0 | 6.1 | 1.8 | 3.7 | 6.8 | 4.5 | 9.1 | 2.4 | 5.2 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 13 | | 1 | 1 | 1 | | 1 | 1 | 22 | 5 | | | 32 | | 3.0 | 2.6 | 1.0 | | .6 | .7 | 2.9 | 2.5 | | | 1.9 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 14 | 1 | 5 | 6 | 10 | 19 | 22 | 17 | 66 | 13 | 9 | 23 | 191 | 12.5 | 15.2 | 15.8 | 10.2 | 16.5 | 13.3 | 12.7 | 8.6 | 6.5 | 10.2 | 28.0 | 11.1 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ 15 | 1 | | | 4 | 7 | 9 | 5 | 31 | 8 | 2 | 8 | 75 | 12.5 | | | 4.1 | 6.1 | 5.4 | 3.7 | 4.1 | 4.0 | 2.3 | 9.8 | 4.3 +--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+--------+ Column 8 33 38 98 115 166 134 765 200 88 82 1727 Total .5 1.9 2.2 5.7 6.7 9.6 7.8 44.3 11.6 5.1 4.7 100.0

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Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 244.36246 130 .00000Likelihood Ratio 250.87489 130 .00000Mantel-Haenszel test for 3.72831 1 .05350 linear association

Minimum Expected Frequency - .148Cells with Expected Frequency < 5 - 87 OF 154 ( 56.5%)

Number of Missing Observations: 65

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HOTEL hotel code by MODEMPL mode of employment

MODEMPL Page 1 of 1 Count | Col Pct |full tim part tim casual |e e Row | 1 | 2 | 3 | TotalHOTEL --------+--------+--------+--------+ 1 | 304 | 48 | 190 | 542 | 29.2 | 26.2 | 38.4 | 31.5 +--------+--------+--------+ 3 | 71 | 46 | 2 | 119 | 6.8 | 25.1 | .4 | 6.9 +--------+--------+--------+ 4 | 151 | 11 | 106 | 268 | 14.5 | 6.0 | 21.4 | 15.6 +--------+--------+--------+ 5 | 44 | | 8 | 52 | 4.2 | | 1.6 | 3.0 +--------+--------+--------+ 6 | 48 | 5 | 33 | 86 | 4.6 | 2.7 | 6.7 | 5.0 +--------+--------+--------+ 7 | 37 | 4 | 5 | 46 | 3.6 | 2.2 | 1.0 | 2.7 +--------+--------+--------+ 8 | 34 | | 15 | 49 | 3.3 | | 3.0 | 2.9 +--------+--------+--------+ 9 | 28 | | 18 | 46 | 2.7 | | 3.6 | 2.7 +--------+--------+--------+ 10 | 27 | 1 | 9 | 37 | 2.6 | .5 | 1.8 | 2.2 +--------+--------+--------+ 11 | 44 | 42 | 1 | 87 | 4.2 | 23.0 | .2 | 5.1 +--------+--------+--------+ 12 | 74 | 3 | 13 | 90 | 7.1 | 1.6 | 2.6 | 5.2 +--------+--------+--------+ 13 | 28 | | 3 | 31 | 2.7 | | .6 | 1.8 +--------+--------+--------+ 14 | 104 | 8 | 80 | 192 | 10.0 | 4.4 | 16.2 | 11.2 +--------+--------+--------+ 15 | 47 | 15 | 12 | 74 | 4.5 | 8.2 | 2.4 | 4.3 +--------+--------+--------+ Column 1041 183 495 1719 Total 60.6 10.6 28.8 100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 394.58509 26 .00000Likelihood Ratio 372.78829 26 .00000Mantel-Haenszel test for 6.83703 1 .00893 linear association

Minimum Expected Frequency - 3.300Cells with Expected Frequency < 5 - 4 OF 42 ( 9.5%)

Number of Missing Observations: 73

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HOTEL hotel code by TRAINSES last training session

TRAINSES Page 1 of1 Count | Col Pct |0-1yr 1-2yrs 2-3yrs 3-4yrs 4-5yrs 5-6yrs 6-7yrs | Row | 1 | 2 | 3 | 4 | 5 | 6 | 7 |TotalHOTEL --------+--------+--------+--------+--------+--------+--------+--------+ 1 | 369 | 73 | 34 | 11 | 8 | 3 | 19 |517 | 30.8 | 30.7 | 34.3 | 27.5 | 27.6 | 27.3 | 40.4 |31.1 +--------+--------+--------+--------+--------+--------+--------+ 3 | 82 | 16 | 10 | 2 | | | 4 |114 | 6.8 | 6.7 | 10.1 | 5.0 | | | 8.5 |6.9 +--------+--------+--------+--------+--------+--------+--------+ 4 | 167 | 51 | 16 | 6 | 6 | 2 | 10 |258 | 13.9 | 21.4 | 16.2 | 15.0 | 20.7 | 18.2 | 21.3 |15.5 +--------+--------+--------+--------+--------+--------+--------+ 5 | 44 | 7 | | 1 | 1 | | 1 |54 | 3.7 | 2.9 | | 2.5 | 3.4 | | 2.1 |3.2 +--------+--------+--------+--------+--------+--------+--------+ 6 | 66 | 7 | 5 | 2 | 1 | 2 | 2 |85 | 5.5 | 2.9 | 5.1 | 5.0 | 3.4 | 18.2 | 4.3 |5.1 +--------+--------+--------+--------+--------+--------+--------+ 7 | 38 | 6 | 1 | | | | |45 | 3.2 | 2.5 | 1.0 | | | | |2.7 +--------+--------+--------+--------+--------+--------+--------+ 8 | 31 | 10 | 2 | 1 | 1 | | 2 |47 | 2.6 | 4.2 | 2.0 | 2.5 | 3.4 | | 4.3 |2.8 +--------+--------+--------+--------+--------+--------+--------+ 9 | 36 | 6 | | 2 | 2 | | |46 | 3.0 | 2.5 | | 5.0 | 6.9 | | |2.8 +--------+--------+--------+--------+--------+--------+--------+ 10 | 30 | 3 | | | 1 | | 1 |35 | 2.5 | 1.3 | | | 3.4 | | 2.1 |2.1 +--------+--------+--------+--------+--------+--------+--------+ 11 | 49 | 10 | 7 | 7 | 2 | 1 | 3 |79 | 4.1 | 4.2 | 7.1 | 17.5 | 6.9 | 9.1 | 6.4 |4.8 +--------+--------+--------+--------+--------+--------+--------+ 12 | 73 | 6 | 4 | 2 | 2 | | 1 |88 | 6.1 | 2.5 | 4.0 | 5.0 | 6.9 | | 2.1 |5.3 +--------+--------+--------+--------+--------+--------+--------+ 13 | 29 | 1 | | | | | 2 |32 | 2.4 | .4 | | | | | 4.3 |1.9 +--------+--------+--------+--------+--------+--------+--------+ 14 | 135 | 28 | 16 | 3 | 2 | 3 | 1 |188 | 11.3 | 11.8 | 16.2 | 7.5 | 6.9 | 27.3 | 2.1 |11.3 +--------+--------+--------+--------+--------+--------+--------+ 15 | 50 | 14 | 4 | 3 | 3 | | 1 |75 | 4.2 | 5.9 | 4.0 | 7.5 | 10.3 | | 2.1 |4.5 +--------+--------+--------+--------+--------+--------+--------+

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Column 1199 238 99 40 29 11 471663 Total 72.1 14.3 6.0 2.4 1.7 .7 2.8100.0

Chi-Square Value DF Significance-------------------- ----------- ---- ------------

Pearson 94.58367 78 .09742Likelihood Ratio 110.43554 78 .00922Mantel-Haenszel test for 1.72676 1 .18882 linear association

Minimum Expected Frequency - .212Cells with Expected Frequency < 5 - 59 OF 98 ( 60.2%)

Number of Missing Observations: 129

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Appendix E

Reliability Analysis and

Principal Components Analysis of Employee Organisational Climate

Data

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1. Variables

1a. Opportunity for independent thought and action exists in your job.1b. your job requires a high level of skill and training.1c. You are required to meet rigid standards of quality in your work.1d. Staff members generally trust their supervisors.1e. The methods of your work are kept up to date.1f. You are required to perform tasks on your job which you consider relatively unimportant orunnecessary.1g. You are able to get the money, supplies, equipment, etc. your work group needs to do its work well.1h. Your supervisor is friendly and easy to approach.1i. Your supervisor offers new ideas for job and related problems.1j. A spirit of cooperation exists in your workgroup.1k. Your job responsibilities are clearly defined.1l. Responsibility is assigned so that individuals have authority within their own area.1m. Dealing with other people is part of your job.1n. Your supervisor encourages the people who work for him or her to exchange ideas and opinions.

2a. Staff members generally trust their managers.2b. You are given advanced information about changes which might affect you.2c. The hotel�s policies are consistently applied to all staff members.2d. You have opportunities to complete the work you start.2e. Procedures are designed so that resources are used efficiently.2f. Your supervisor is attentive to what you say.2g. Your supervisor provides the help you need to schedule your work ahead of time.2h. there is friction in your workgroup.2i. You have opportunities to learn worthwhile skills and knowledge in your job.2j. New staff members get on-the-job training they need.2k. There is variety in your job.2l. Your hours of work are irregular.2m. Everything in this hotel is checked, individual judgement is not trusted.2n. Being liked is important in getting a promotion.

3a. You have good information on where you stand and how your performance is evaluated.3b. Your superior emphasises high standards of performance.3c. The ideas and suggestions of staff members are paid attention to.3d. you have the opportunity to do a number of different things in your job.3e. Your supervisor sets an example by working hard himself or herself.3f. A friendly atmosphere prevails among most of the members of your workgroup.3g. Hotel politics count in getting a promotion.3h. People act as though everyone must be watched or they will slacken off.3i. Supervisors generally know what is going on in their work groups.3j. You are aware of how well your work group is meeting its objectives.3k. Your job demands precision.3l. Members of your work group trust each other.3m. The hotel has a good image to outsiders.3n. Working in this hotel is beneficial to your career.3o. You have opportunities to make full use of your knowledge and skills in your job.

4a. Communication is hindered by following chain of command rules.4b. Your supervisor encourages the people who work for them to work as a team.4c. It is possible to get accurate information on the policies and objectives of this hotel.4d. The hotel strives to do a better job than other hotels of the same type.4e. The hotel emphasises personal growth and development.4f. Managers keep well informed about the needs and problems of employees.4g. Discipline in this hotel is maintained consistently.4h. Your manager is successful in his dealing with higher levels of management.4i. The objectives of the hotel are clearly defined.4j. There is conflict between your department and other departments of the hotel.4k. Your work is important.4l. The way your work group is organised hinders the efficient conduct of work.

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4m. This hotel is concerned with assisting the local community.4n. Things in this hotel seem to happen contrary to rules and regulations.

5a. In this hotel the only source of information on important matters is the grapevine.5b. In this hotel things are planned so that everyone is getting in each others� way.5c. Under most circumstances I would recommend this hotel to a prospective staff member.5d. Most of the personnel in my department would not want to change to another department.5e. Most members of my work group take pride in their jobs.5f. Generally there are friendly and co-operative relationships between the different departments of thehotel.5g. My department, compared to all other departments would be one of the most productive.5h. Excessive rules and regulations interfere with how well I am able to do my job.5i. Overall I think my immediate supervisor is doing a good job.5j. Compared with other work groups, my work group is under much less pressure to produce.5k. In my job the opportunities to get to know people are limited.5l. Compared to all other similar work groups in this hotel, my work group would be the most productive.5m. Your immediate supervisor is successful in dealing with higher levels of management.

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2. Reliability AnalysisR E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

Mean Std Dev Cases

1. I_1A 4.9550 1.5344 1401.0 2. I_1B 5.0457 1.5673 1401.0 3. I_1C 5.8687 1.1538 1401.0 4. I_1D 5.0435 1.4977 1401.0 5. I_1E 5.2277 1.3110 1401.0 6. I_1F 4.6160 1.6448 1401.0 7. I_1G 4.4668 1.6997 1401.0 8. I_1H 5.6931 1.3623 1401.0 9. I_1I 5.0821 1.4559 1401.0 10. I_1J 5.3419 1.4494 1401.0 11. I_1K 5.4318 1.3958 1401.0 12. I_1L 5.0842 1.5185 1401.0 13. I_1M 6.4097 .9520 1401.0 14. I_1N 5.1734 1.5700 1401.0 15. I_2A 4.7566 1.6195 1401.0 16. I_2B 4.5275 1.6817 1401.0 17. I_2C 4.6395 1.7323 1401.0 18. I_2D 5.4433 1.1987 1401.0 19. I_2E 4.9215 1.4970 1401.0 20. I_2F 5.2655 1.4221 1401.0 21. I_2G 5.0528 1.4112 1401.0 22. I_2H 4.3712 1.8457 1401.0 23. I_2I 4.8223 1.6731 1401.0 24. I_2J 5.0592 1.5848 1401.0 25. I_2K 4.8630 1.7590 1401.0 26. I_2L 3.5289 2.1599 1401.0 27. I_2M 3.9993 1.5886 1401.0 28. I_2N 2.9065 1.6364 1401.0 29. I_3A 4.5860 1.5716 1401.0 30. I_3B 5.5296 1.2573 1401.0 31. I_3C 4.7852 1.4741 1401.0 32. I_3D 5.0214 1.5918 1401.0 33. I_3E 5.0835 1.6855 1401.0 34. I_3F 5.6831 1.2539 1401.0 35. I_3G 3.1370 1.5838 1401.0 36. I_3H 4.0314 1.5813 1401.0 37. I_3I 5.1035 1.3758 1401.0 38. I_3J 5.0542 1.3196 1401.0 39. I_3K 5.5082 1.2683 1401.0 40. I_3L 5.1113 1.3796 1401.0 41. I_3M 5.6538 1.2349 1401.0 42. I_3N 5.3448 1.5925 1401.0 43. I_3O 4.9657 1.7632 1401.0 44. I_4A 3.8494 1.4917 1401.0 45. I_4B 5.5767 1.2490 1401.0 46. I_4C 5.2334 1.3827 1401.0 47. I_4D 5.7652 1.2124 1401.0 48. I_4E 5.0528 1.5311 1401.0

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R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

Mean Std Dev Cases

49. I_4F 4.5303 1.6193 1401.0 50. I_4G 4.7823 1.4872 1401.0 51. I_4H 5.0400 1.4297 1401.0 52. I_4I 5.4711 1.2175 1401.0 53. I_4J 4.3505 1.7207 1401.0 54. I_4K 6.1313 1.0757 1401.0 55. I_4L 4.4140 1.7378 1401.0 56. I_4M 4.7730 1.4471 1401.0 57. I_4N 3.9693 1.5477 1401.0 58. I_5A 4.5903 1.6451 1401.0 59. I_5B 5.2156 1.3242 1401.0 60. I_5C 5.3747 1.3470 1401.0 61. I_5D 4.6146 1.5986 1401.0 62. I_5E 5.2049 1.3475 1401.0 63. I_5F 5.1599 1.2479 1401.0 64. I_5G 5.1485 1.3802 1401.0 65. I_5H 4.6017 1.5037 1401.0 66. I_5I 5.5125 1.3654 1401.0 67. I_5J 5.0578 1.5580 1401.0 68. I_5K 4.9536 1.6579 1401.0 69. I_5L 4.7052 1.3626 1401.0 70. I_5M 5.0757 1.4172 1401.0

N ofStatistics for Mean Variance Std Dev Variables SCALE 346.3498 2883.9276 53.7022 70

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R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

Item-total Statistics

Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted

I_1A 341.3947 2783.7034 .6045 .9585I_1B 341.3041 2821.8218 .3582 .9593I_1C 340.4811 2829.8612 .4296 .9591I_1D 341.3062 2776.0812 .6691 .9583I_1E 341.1221 2801.2272 .5835 .9586I_1F 341.7338 2830.5426 .2896 .9596I_1G 341.8829 2815.1163 .3655 .9593I_1H 340.6567 2792.2928 .6236 .9585I_1I 341.2677 2777.3219 .6809 .9583I_1J 341.0079 2783.8878 .6403 .9584I_1K 340.9179 2802.1683 .5401 .9587I_1L 341.2655 2790.6666 .5669 .9586I_1M 339.9400 2861.7935 .2084 .9595I_1N 341.1763 2775.3096 .6417 .9584I_2A 341.5931 2762.4029 .6984 .9582I_2B 341.8223 2773.6562 .6066 .9585I_2C 341.7102 2775.1188 .5797 .9586I_2D 340.9065 2818.9905 .4989 .9589I_2E 341.4283 2779.4079 .6480 .9584I_2F 341.0842 2777.4800 .6967 .9583I_2G 341.2969 2786.4232 .6411 .9584I_2H 341.9786 2792.9653 .4488 .9591I_2I 341.5275 2774.4109 .6055 .9585I_2J 341.2905 2796.0591 .5093 .9588I_2K 341.4868 2795.0043 .4615 .9590I_2L 342.8208 2858.9629 .0879 .9608I_2M 342.3505 2845.3307 .2129 .9598I_2N 343.4433 2824.3884 .3269 .9594I_3A 341.7637 2778.8406 .6193 .9585I_3B 340.8201 2806.6905 .5679 .9587I_3C 341.5646 2769.7889 .7216 .9582I_3D 341.3283 2797.2293 .4999 .9589I_3E 341.2662 2764.7555 .6563 .9583I_3F 340.6667 2810.1452 .5432 .9588I_3G 343.2127 2827.5433 .3199 .9594I_3H 342.3183 2809.4657 .4293 .9591I_3I 341.2463 2791.4229 .6233 .9585I_3J 341.2955 2799.4226 .5927 .9586I_3K 340.8415 2825.6949 .4199 .9591I_3L 341.2384 2801.8917 .5487 .9587I_3M 340.6959 2816.2089 .5050 .9589

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R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

Item-total Statistics

Scale Scale Corrected Mean Variance Item- Alpha if Item if Item Total if Item Deleted Deleted Correlation Deleted

I_3N 341.0050 2785.7478 .5690 .9586I_3O 341.3840 2762.4739 .6385 .9584I_4A 342.5004 2814.8487 .4224 .9591I_4B 340.7730 2797.6556 .6411 .9585I_4C 341.1163 2802.8186 .5409 .9587I_4D 340.5846 2812.8744 .5411 .9588I_4E 341.2969 2777.3875 .6456 .9584I_4F 341.8194 2761.3324 .7050 .9582I_4G 341.5675 2794.0213 .5578 .9587I_4H 341.3098 2789.4611 .6120 .9585I_4I 340.8787 2810.6581 .5561 .9587I_4J 341.9993 2816.6093 .3524 .9594I_4K 340.2184 2833.1994 .4329 .9591I_4L 341.9358 2817.0987 .3459 .9594I_4M 341.5767 2823.7600 .3776 .9592I_4N 342.3804 2812.1473 .4227 .9591I_5A 341.7595 2790.6657 .5210 .9588I_5B 341.1342 2814.4677 .4819 .9589I_5C 340.9750 2800.0172 .5759 .9587I_5D 341.7352 2823.4634 .3409 .9594I_5E 341.1449 2799.0068 .5828 .9586I_5F 341.1899 2815.9096 .5018 .9589I_5G 341.2013 2847.1652 .2366 .9596I_5H 341.7480 2818.9486 .3928 .9592I_5I 340.8373 2789.3178 .6431 .9585I_5J 341.2919 2861.5411 .1197 .9601I_5K 341.3961 2836.2437 .2545 .9597I_5L 341.6445 2862.7878 .1322 .9599I_5M 341.2741 2790.4420 .6109 .9585

Reliability Coefficients

N of Cases = 1401.0 N of Items = 70

Alpha = .9594

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3. Principal Components Analysis

Analysis number 1 Pairwise deletion of cases with missing values

Mean Std Dev Cases Label

I_1A 4.91572 1.55387 1768I_1B 5.04262 1.57541 1783I_1C 5.85202 1.18007 1784I_1D 5.02302 1.52508 1781I_1E 5.22278 1.32199 1782I_1F 3.38440 1.67313 1782I_1G 4.45465 1.70186 1775I_1H 5.66591 1.37622 1772I_1I 5.09055 1.47296 1767I_1J 5.28708 1.49579 1780I_1K 5.40045 1.42785 1778I_1L 5.07601 1.51588 1776I_1M 6.37535 .98033 1785I_1N 5.16367 1.57916 1778I_2A 4.75518 1.62658 1785I_2B 4.52664 1.68483 1783I_2C 4.64362 1.74339 1779I_2D 5.42817 1.21527 1782I_2E 4.92853 1.50036 1777I_2F 5.21163 1.46050 1772I_2G 5.03180 1.43341 1761I_2H 3.65127 1.84598 1775I_2I 4.82479 1.67522 1775I_2J 5.04730 1.58479 1776I_2K 4.86213 1.75998 1777I_2L 4.42785 2.17874 1774I_2M 4.02201 1.59724 1772I_2N 5.07372 1.65276 1777I_3A 4.57015 1.58756 1782I_3B 5.50703 1.27479 1777I_3C 4.74719 1.49465 1780I_3D 5.00898 1.59833 1782I_3E 5.05697 1.71391 1773I_3F 5.64587 1.27908 1779I_3G 4.87040 1.59475 1767I_3H 3.96901 1.60981 1775I_3I 5.09837 1.39455 1779I_3J 5.01805 1.34664 1773I_3K 5.50929 1.27035 1777I_3L 5.07926 1.41815 1779I_3M 5.64759 1.23324 1782I_3N 5.32697 1.60342 1780I_3O 4.93659 1.77287 1782I_4A 4.16629 1.50733 1756I_4B 5.54972 1.26261 1770I_4C 5.20372 1.39481 1772I_4D 5.71896 1.23291 1772I_4E 5.04084 1.52152 1763I_4F 4.49831 1.63354 1770I_4G 4.79153 1.48291 1770I_4H 5.03333 1.44016 1770I_4I 5.44855 1.23402 1759I_4J 3.65705 1.71003 1767I_4K 6.14813 1.06739 1762I_4L 3.61736 1.74808 1751I_4M 4.75085 1.46036 1762I_4N 4.07548 1.56425 1762I_5A 3.45495 1.67406 1776I_5B 2.83851 1.37734 1771I_5C 5.36266 1.34421 1773

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Mean Std Dev Cases LabelI_5D 4.57490 1.60181 1769I_5E 5.19255 1.35991 1771I_5F 5.16131 1.26327 1773I_5G 5.10985 1.40793 1766I_5H 3.45000 1.54846 1760I_5I 5.47225 1.41264 1766I_5J 2.97561 1.59844 1763I_5K 3.11205 1.70035 1767I_5L 4.69187 1.39375 1759I_5M 5.06444 1.43499 1769

Correlation Matrix:

I_1A I_1B I_1C I_1D I_1E I_1F I_1GI_1A 1.00000I_1B .36277 1.00000I_1C .29384 .43687 1.00000I_1D .45426 .24380 .31985 1.00000I_1E .36536 .24670 .34006 .48785 1.00000I_1F -.14695 -.03812 -.06707 -.15591 -.15114 1.00000I_1G .23433 .07491 .11461 .23760 .30702 -.05158 1.00000I_1H .42556 .19697 .22424 .57576 .36548 -.13966 .19932I_1I .47173 .26467 .25186 .50856 .40662 -.16232 .25273I_1J .43661 .23724 .27167 .51336 .38267 -.15528 .22858I_1K .26406 .13624 .29414 .35100 .41165 -.18812 .22566I_1L .45847 .26599 .24785 .38921 .34105 -.11332 .25274I_1M .14355 .12299 .14953 .09055 .07850 -.04800 .09792I_1N .47846 .25251 .28036 .46084 .36941 -.15368 .19161I_2A .41224 .20422 .30059 .68438 .45637 -.19368 .28593I_2B .34659 .17695 .21994 .42117 .40761 -.18951 .32802I_2C .31188 .14674 .22571 .43086 .38059 -.19910 .30638I_2D .29671 .18002 .21542 .33626 .37424 -.15766 .24349I_2E .37696 .18990 .27981 .43874 .46632 -.23257 .34671I_2F .46364 .21442 .28993 .59731 .41690 -.20764 .20904I_2G .38834 .17834 .23835 .50817 .41955 -.15579 .22567I_2H -.27040 -.11230 -.15968 -.35549 -.19373 .18657 -.10417I_2I .40107 .31851 .24695 .34663 .36844 -.19400 .25875I_2J .23101 .13392 .24699 .34035 .40597 -.15424 .26223I_2K .40271 .37071 .19607 .26864 .24350 -.10794 .14783I_2L -.03890 .02926 -.01293 -.01485 -.06522 .12174 -.06539I_2M -.16895 -.05100 .02911 -.12267 -.05481 .14720 -.03515I_2N -.16019 -.09018 -.07481 -.20623 -.13177 .10516 -.11878I_3A .35467 .23052 .26932 .39587 .41264 -.14824 .22950I_3B .30408 .19236 .39888 .38936 .36152 -.16250 .17990I_3C .48487 .24819 .24556 .49509 .41073 -.18905 .28775I_3D .46913 .34709 .21000 .30105 .27083 -.10212 .16997I_3E .41136 .24045 .22944 .49824 .34524 -.21492 .14675I_3F .31183 .16092 .25459 .40302 .31212 -.12424 .14496I_3G -.16271 -.09018 -.07610 -.21652 -.15560 .12472 -.09638I_3H -.30925 -.10952 -.07534 -.27853 -.19459 .20855 -.13444I_3I .34404 .15438 .28161 .49946 .36749 -.17106 .19932I_3J .34237 .20075 .26938 .37492 .34783 -.14387 .21451I_3K .27311 .47329 .43556 .24116 .29891 -.09901 .10751I_3L .33781 .23146 .25092 .42193 .32083 -.12490 .13146I_3M .24996 .13589 .26470 .33641 .29424 -.16884 .20989I_3N .39354 .31382 .24580 .35095 .31702 -.15675 .24929I_3O .45316 .41896 .32482 .38011 .40611 -.12666 .26766I_4A -.24797 -.06982 -.08958 -.28834 -.18513 .20846 -.08932I_4B .35847 .17326 .27733 .42811 .37249 -.18261 .16405I_4C .30943 .09495 .20858 .33044 .33869 -.15484 .23630I_4D .29904 .15618 .31706 .32901 .32538 -.17050 .20394I_4E .39369 .22059 .29842 .40690 .38842 -.20658 .28530I_4F .41033 .23555 .26928 .46351 .38916 -.17108 .27527 I_1A I_1B I_1C I_1D I_1E I_1F I_1GI_4G .30032 .18748 .28388 .39405 .37244 -.16517 .25886I_4H .36920 .23417 .26500 .38796 .36987 -.13826 .23772I_4I .28160 .14547 .29026 .31373 .31717 -.18415 .24774I_4J -.17195 -.02982 -.10526 -.22723 -.19658 .18180 -.17379I_4K .28766 .34238 .29810 .27986 .28516 -.15313 .11133I_4L -.19777 -.08266 -.14544 -.21479 -.17741 .20245 -.07751

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262

I_4M .20803 .12726 .12639 .20469 .25719 -.12384 .22019I_4N -.24573 -.12223 -.18456 -.27857 -.18764 .20932 -.11518I_5A -.28926 -.09467 -.19631 -.32594 -.25396 .24837 -.13329I_5B -.24995 -.08757 -.20853 -.28347 -.23233 .28478 -.11580I_5C .35050 .11757 .21957 .37755 .31018 -.19960 .24105I_5D .27254 .22977 .12425 .17396 .15889 -.04788 .09670I_5E .36986 .28008 .31404 .37976 .33805 -.14015 .13851I_5F .27044 .12163 .20383 .31712 .28889 -.14841 .20740I_5G .13847 .19201 .21078 .17459 .16395 -.03843 .05213I_5H -.24972 -.05659 -.12929 -.24751 -.20642 .27360 -.09619I_5I .34738 .15026 .23551 .50805 .36768 -.19432 .19320I_5J -.07254 -.10055 -.15176 -.06645 -.03240 .13846 .04366I_5K -.18231 -.04947 -.05427 -.09537 -.08789 .14175 -.06758I_5L .06829 .14989 .15878 .10334 .11902 .02756 .01074I_5M .35954 .19701 .22457 .41667 .40335 -.15587 .19475

I_1H I_1I I_1J I_1K I_1L I_1M I_1NI_1H 1.00000I_1I .66537 1.00000I_1J .51196 .52169 1.00000I_1K .31916 .35773 .40265 1.00000I_1L .34906 .39677 .39279 .42227 1.00000I_1M .16419 .15823 .17418 .11396 .15827 1.00000I_1N .54148 .62645 .49822 .35332 .43502 .20501 1.00000I_2A .49508 .49600 .48031 .39819 .41099 .12225 .46026I_2B .35293 .41658 .37012 .39343 .36819 .12862 .41185I_2C .30310 .33472 .31057 .38085 .37296 .09157 .33814I_2D .30629 .29196 .31592 .40720 .31874 .11089 .30140I_2E .35401 .41713 .42878 .44348 .43322 .12913 .39754I_2F .68519 .62116 .56800 .39887 .38460 .17113 .57530I_2G .55939 .55461 .47816 .42472 .39592 .13837 .49940I_2H -.31931 -.30095 -.46849 -.24438 -.21269 -.03519 -.29247I_2I .31350 .42039 .33549 .29675 .34018 .13484 .43162I_2J .27374 .36331 .34041 .39547 .29969 .05035 .31885I_2K .22227 .29743 .30123 .18016 .29583 .12397 .32714I_2L -.06781 -.03385 -.01692 -.10005 -.06763 .09748 -.00930I_2M -.15368 -.12378 -.14497 -.05471 -.07950 -.00539 -.10475I_2N -.19035 -.20309 -.13472 -.20087 -.13242 .04176 -.16272I_3A .37947 .42840 .35705 .43092 .36986 .09997 .45189I_3B .40442 .45529 .37297 .31126 .27844 .18986 .45709I_3C .47194 .53894 .46428 .33350 .41848 .15706 .57073I_3D .26264 .32650 .31544 .17499 .32010 .13629 .34360I_3E .54541 .55107 .47925 .27734 .34500 .15131 .48682I_3F .39331 .36565 .55119 .27513 .32118 .16454 .37305I_3G -.17532 -.16261 -.15151 -.18462 -.15760 .06638 -.14204I_3H -.23743 -.22358 -.26255 -.19484 -.20375 -.08646 -.22681I_3I .46026 .46556 .45635 .33966 .39180 .11128 .42460I_3J .36531 .41320 .38279 .31521 .33541 .14339 .38038I_3K .17352 .24854 .21826 .21977 .29112 .15619 .27313I_3L .32390 .34864 .54338 .28086 .35345 .14062 .36861I_3M .28304 .27249 .30094 .25008 .27953 .16072 .27344I_3N .31048 .38244 .33873 .27027 .32357 .20153 .36349I_3O .31516 .41231 .36830 .34845 .39776 .11153 .41710I_4A -.26008 -.24198 -.26484 -.17124 -.18156 -.03146 -.21290I_4B .48610 .50861 .42924 .32133 .32144 .19723 .55368I_4C .27259 .32436 .29146 .28717 .29724 .18155 .31109I_4D .28949 .32099 .31925 .28827 .30372 .18937 .31652I_4E .31519 .36780 .36887 .35534 .37308 .13202 .39272I_4F .42168 .48703 .40308 .37740 .39744 .13246 .45432I_4G .27595 .33972 .31201 .33060 .34180 .08410 .32709I_4H .36608 .45979 .35691 .31306 .35544 .12725 .38122I_4I .24906 .31402 .30688 .33538 .27900 .15441 .30353I_4J -.16018 -.16557 -.21359 -.18944 -.13842 -.00295 -.13484I_4K .23535 .24864 .25593 .27217 .27066 .16044 .25176I_4L -.21953 -.21327 -.28059 -.17243 -.16331 -.04408 -.21821I_4M .16136 .19232 .16384 .22418 .25561 .06051 .19303I_4N -.24037 -.23808 -.28046 -.18605 -.19627 -.09272 -.23694I_5A -.28072 -.27342 -.28630 -.26058 -.23176 -.07559 -.26832I_5B -.26933 -.24913 -.26096 -.22784 -.19848 -.10249 -.22775I_5C .34074 .34560 .37615 .30685 .31307 .15475 .36302I_5D .21172 .24614 .25652 .11855 .19305 .12568 .26388

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I_5E .33630 .39297 .47517 .28790 .34097 .11171 .37700I_5F .23563 .27406 .31550 .25487 .25048 .13653 .25508I_5G .14624 .15128 .18604 .16133 .15391 .01429 .15930I_5H -.25382 -.19703 -.21996 -.18830 -.15945 -.04854 -.18108I_5I .63650 .58882 .46915 .34047 .29920 .14106 .51505I_5J -.07781 -.08522 -.07093 -.04983 -.03862 -.04274 -.06024I_5K -.11731 -.13950 -.14005 -.10462 -.10377 -.25932 -.15763I_5L .09408 .12143 .13607 .12476 .09828 -.01710 .11862I_5M .43677 .54095 .38035 .34219 .35039 .11202 .45306

I_2A I_2B I_2C I_2D I_2E I_2F I_2GI_2A 1.00000I_2B .51781 1.00000I_2C .49000 .52580 1.00000I_2D .37578 .38909 .37340 1.00000I_2E .49681 .46848 .48633 .47721 1.00000I_2F .56180 .43236 .37260 .38273 .46758 1.00000I_2G .50237 .44047 .40203 .42320 .49488 .68371 1.00000I_2H -.31158 -.21261 -.20514 -.21188 -.23536 -.35216 -.28746I_2I .40342 .39810 .35003 .29135 .38055 .37270 .34121I_2J .38095 .38818 .35255 .30972 .45973 .37884 .39721I_2K .28675 .27533 .23822 .21948 .29193 .30205 .28727I_2L -.01884 .00726 -.02679 -.07012 -.08267 -.03278 -.06194I_2M -.09469 -.08369 -.03750 -.04866 -.04387 -.10612 -.09425I_2N -.25251 -.18651 -.22732 -.17648 -.15621 -.21094 -.18308I_3A .48830 .46908 .39347 .34105 .43939 .46660 .46435I_3B .41853 .35226 .32389 .31052 .40547 .48942 .45038I_3C .54603 .46515 .43347 .33948 .49849 .58127 .51946I_3D .33034 .29430 .24955 .20980 .27448 .33921 .28311I_3E .46624 .36435 .32256 .28872 .38416 .60994 .52484I_3F .40265 .28596 .27436 .28295 .30273 .42980 .35742I_3G -.26460 -.18833 -.26325 -.15307 -.16576 -.19181 -.18512I_3H -.29950 -.22270 -.18231 -.22073 -.22860 -.25991 -.24330I_3I .49004 .37535 .39323 .27203 .43647 .52790 .48615I_3J .42516 .41058 .34121 .29822 .37804 .44182 .41969I_3K .26107 .21984 .22007 .23552 .25883 .24385 .21515I_3L .42561 .29772 .28733 .26920 .29612 .39499 .33871I_3M .37748 .28390 .31576 .23743 .32717 .30728 .27516I_3N .39910 .31207 .34368 .24372 .34897 .33356 .31006I_3O .42298 .34890 .36292 .33603 .41797 .39903 .36682I_4A -.28252 -.22846 -.17692 -.16117 -.24318 -.28238 -.23664I_4B .43314 .38894 .36037 .30735 .40974 .53709 .49448I_4C .40008 .38335 .39252 .28264 .40241 .34057 .32766I_4D .39287 .31690 .35310 .27132 .36510 .33171 .31099I_4E .46489 .41821 .45725 .33946 .48811 .39089 .37879I_4F .55802 .48255 .46077 .33998 .49388 .49371 .46373I_4G .44467 .39837 .52165 .28812 .45830 .35287 .35083I_4H .50663 .40301 .34087 .30823 .40532 .44563 .39634I_4I .40266 .37543 .39984 .28726 .39006 .31418 .30222I_4J -.22558 -.23191 -.29469 -.15250 -.26740 -.18153 -.15892I_4K .27356 .20999 .23960 .25291 .26670 .27115 .24277I_4L -.20158 -.17056 -.10136 -.17950 -.21735 -.26853 -.21728I_4M .27147 .25503 .33385 .18174 .24668 .20249 .23966I_4N -.28067 -.24909 -.24968 -.25961 -.26218 -.29402 -.22374I_5A -.37556 -.37736 -.34793 -.25968 -.34262 -.33726 -.25979I_5B -.29937 -.24148 -.23918 -.24186 -.33304 -.31407 -.23327I_5C .42764 .30456 .34592 .26632 .37056 .36506 .31304I_5D .21698 .20429 .09957 .18735 .14920 .26653 .22520I_5E .40071 .29917 .24960 .28345 .31695 .41879 .35085I_5F .36523 .27857 .37351 .21035 .33560 .29744 .26583I_5G .14154 .08491 .10705 .12180 .16850 .15495 .14192I_5H -.24346 -.21482 -.17182 -.19605 -.24522 -.26489 -.20358I_5I .46289 .34370 .31546 .28724 .37409 .64330 .54225I_5J -.03370 -.00911 .02249 -.01312 -.02779 -.08020 .04162I_5K -.10970 -.12583 -.08546 -.06624 -.10437 -.13862 -.13448I_5L .09491 .05128 .10206 .09062 .09811 .09977 .11425I_5M .45032 .37571 .33273 .29908 .39966 .49985 .45171

I_2H I_2I I_2J I_2K I_2L I_2M I_2NI_2H 1.00000I_2I -.14741 1.00000

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264

I_2J -.19595 .36878 1.00000I_2K -.11325 .48874 .22678 1.00000I_2L .11250 -.02967 -.07046 .03812 1.00000I_2M .16553 -.13288 -.00599 -.08322 .10977 1.00000I_2N .19131 -.15084 -.16924 -.10416 .09733 .17859 1.00000I_3A -.23326 .39298 .41777 .30067 -.04388 -.01687 -.20593I_3B -.23799 .31320 .35366 .21933 -.01787 .01430 -.10870I_3C -.29547 .48874 .39131 .34154 -.04872 -.11820 -.20002I_3D -.13937 .48627 .18775 .71500 .03990 -.09248 -.11769I_3E -.34824 .33186 .31152 .30052 -.02384 -.10317 -.19161I_3F -.37941 .27077 .25349 .21749 .00004 -.10475 -.12624I_3G .24166 -.15393 -.20737 -.11705 .07659 .15084 .43662I_3H .31205 -.18551 -.13633 -.16863 .13096 .30542 .26652I_3I -.31225 .35639 .36482 .25077 -.04883 -.05691 -.14826I_3J -.23365 .34506 .37670 .30284 -.04297 -.03473 -.14246I_3K -.13697 .28834 .18623 .31841 .02224 -.02335 -.04498I_3L -.44152 .28792 .26389 .25362 -.03021 -.08972 -.15622I_3M -.19617 .28452 .23274 .17398 -.00979 -.07913 -.13381I_3N -.16434 .51931 .27484 .39186 -.01226 -.09850 -.10102I_3O -.21221 .53604 .31763 .46903 -.03992 -.10086 -.22016I_4A .29942 -.20139 -.19950 -.17600 .06642 .21586 .20089I_4B -.27344 .36202 .34238 .27397 .00286 -.09904 -.14996I_4C -.16652 .34181 .29355 .22305 .03274 -.08213 -.11976I_4D -.19224 .30926 .31512 .21427 .00475 -.07636 -.12616I_4E -.22324 .49440 .38847 .33141 -.03246 -.09941 -.20774I_4F -.26116 .49225 .38529 .33757 -.05735 -.09730 -.24520I_4G -.22888 .31211 .34785 .22025 -.06851 -.02062 -.17671I_4H -.26150 .36718 .33039 .27813 .01507 -.11207 -.18237I_4I -.18787 .34831 .35255 .23225 -.03352 -.07641 -.12126I_4J .28293 -.12226 -.15698 -.09237 .12841 .17958 .17355I_4K -.15343 .30592 .18523 .30217 -.04095 -.05794 -.13490I_4L .29732 -.12249 -.18834 -.11015 .11139 .11349 .13290I_4M -.12441 .24843 .22923 .16525 -.04139 -.07128 -.12449I_4N .29294 -.19104 -.20758 -.14380 .02766 .16342 .22694I_5A .27944 -.24260 -.27608 -.13985 .02913 .20432 .26193I_5B .28847 -.21294 -.25144 -.13669 .07445 .19115 .15174I_5C -.24825 .33976 .30556 .24218 -.05260 -.15373 -.17339I_5D -.18078 .22154 .10689 .27884 -.01001 -.07316 -.06870I_5E -.34391 .28483 .27014 .30804 -.06890 -.06531 -.16005I_5F -.19361 .25491 .24195 .17549 -.05094 -.05463 -.15491I_5G -.02400 .07992 .14644 .12630 .01870 -.02150 -.01958I_5H .26615 -.14728 -.17843 -.08399 .10492 .23616 .14953I_5I -.33618 .30522 .31546 .23597 -.04270 -.08862 -.17373I_5J .08542 -.04684 -.03701 .00960 .00466 .06366 .01106I_5K .08295 -.20400 -.08943 -.19678 .00641 .14622 .05297I_5L .00864 .02494 .08338 .07209 .02302 .04445 -.02634I_5M -.25547 .36199 .30675 .26252 -.02070 -.08852 -.16680

I_3A I_3B I_3C I_3D I_3E I_3F I_3GI_3A 1.00000I_3B .44296 1.00000I_3C .50788 .47019 1.00000I_3D .32748 .27206 .40424 1.00000I_3E .40406 .48493 .50431 .34374 1.00000I_3F .32537 .32405 .39510 .27283 .40415 1.00000I_3G -.22479 -.13043 -.16427 -.09097 -.17235 -.11877 1.00000I_3H -.18773 -.13408 -.26523 -.18080 -.24214 -.23200 .32679I_3I .42657 .40565 .47534 .27663 .50738 .42669 -.15651I_3J .44065 .41107 .48425 .32710 .40732 .36196 -.11003I_3K .28008 .29958 .25407 .31042 .26666 .21447 -.03699I_3L .32358 .33113 .38229 .30817 .38457 .56180 -.13534I_3M .29971 .31886 .37612 .19448 .27562 .31270 -.10415I_3N .29916 .28969 .42877 .38427 .33687 .30045 -.11943I_3O .42774 .33384 .46649 .47877 .37611 .33302 -.20670I_4A -.18286 -.17755 -.26075 -.17642 -.26678 -.18840 .24883I_4B .41497 .50911 .49472 .31022 .49757 .40815 -.13218I_4C .35553 .34641 .38756 .25423 .30488 .30461 -.12847I_4D .33370 .39184 .38602 .24694 .31771 .33129 -.11015I_4E .43398 .39635 .47672 .34260 .35632 .31289 -.21103I_4F .49438 .38752 .57197 .37289 .44138 .33918 -.24078I_4G .37784 .38524 .40977 .25027 .33963 .30860 -.20891

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265

I_4H .42646 .36783 .48741 .33886 .42523 .28206 -.21282I_4I .36686 .36384 .39600 .27437 .29557 .30069 -.16382I_4J -.18638 -.14251 -.19710 -.07817 -.16909 -.21428 .20429I_4K .25776 .23234 .26582 .31409 .25016 .24640 -.10678I_4L -.18185 -.20022 -.21701 -.12366 -.26308 -.23090 .13168I_4M .24069 .18209 .25356 .17726 .17556 .12149 -.18010I_4N -.24203 -.22556 -.28440 -.15864 -.26923 -.23789 .23801I_5A -.31649 -.26659 -.33932 -.15518 -.31895 -.29412 .28247I_5B -.22818 -.24031 -.29526 -.14085 -.31740 -.25134 .17584I_5C .32054 .29669 .40729 .25240 .32451 .32083 -.19242I_5D .19325 .16158 .26771 .30147 .27642 .24428 -.03356I_5E .32196 .34297 .36545 .32928 .41158 .43396 -.14285I_5F .29453 .24760 .35341 .20762 .28508 .32128 -.15770I_5G .14226 .17096 .14007 .12051 .14636 .18037 -.02708I_5H -.17987 -.15664 -.24173 -.07934 -.23363 -.21727 .19122I_5I .37643 .45677 .48996 .26283 .61233 .38396 -.16324I_5J -.02369 -.09794 -.02715 -.02201 -.10498 -.09078 .02044I_5K -.10893 -.10631 -.16206 -.19598 -.11996 -.15110 .04121I_5L .10781 .11059 .08035 .08867 .09907 .13729 -.00540I_5M .41161 .40805 .46921 .30626 .48418 .29144 -.17671

I_3H I_3I I_3J I_3K I_3L I_3M I_3NI_3H 1.00000I_3I -.19962 1.00000I_3J -.14981 .45778 1.00000I_3K -.09339 .23070 .32070 1.00000I_3L -.25642 .38041 .38249 .32621 1.00000I_3M -.17341 .30563 .29489 .20516 .31620 1.00000I_3N -.18293 .27974 .31872 .29575 .31275 .42630 1.00000I_3O -.23215 .37504 .38700 .37520 .34999 .32036 .56332I_4A .34633 -.26610 -.18878 -.10808 -.19121 -.15290 -.15564I_4B -.20153 .48800 .39581 .22933 .36217 .31856 .35113I_4C -.21137 .31518 .35867 .19108 .23661 .38215 .37461I_4D -.17554 .32067 .33006 .30433 .27999 .48798 .37190I_4E -.25081 .39428 .36578 .23813 .29289 .41099 .47993I_4F -.24452 .49935 .45262 .25751 .34092 .36813 .42557I_4G -.18603 .36940 .33390 .26555 .29983 .33843 .32260I_4H -.22366 .40667 .38617 .27569 .30206 .35055 .32846I_4I -.18989 .35024 .37188 .25587 .27970 .40540 .34402I_4J .25523 -.17927 -.19476 -.07269 -.20854 -.18656 -.16676I_4K -.14642 .23107 .23831 .39299 .25799 .24881 .35371I_4L .27665 -.22416 -.19344 -.10388 -.24434 -.12806 -.06467I_4M -.16179 .22519 .19139 .17797 .15392 .27166 .28632I_4N .32557 -.23896 -.21713 -.11738 -.25298 -.24844 -.16866I_5A .36454 -.29782 -.25584 -.11890 -.22784 -.29691 -.27562I_5B .30927 -.28574 -.23438 -.13519 -.20466 -.28905 -.23558I_5C -.25525 .34467 .29919 .19075 .32452 .44009 .47652I_5D -.12093 .18490 .24551 .22914 .29400 .14317 .22168I_5E -.26435 .37510 .36905 .32035 .49267 .31498 .29239I_5F -.19066 .30540 .28650 .17359 .30139 .31368 .30400I_5G -.03648 .18680 .16517 .21743 .18389 .11031 .07662I_5H .32381 -.21766 -.18848 -.10794 -.17489 -.23977 -.14021I_5I -.23528 .49330 .38374 .18695 .36416 .27509 .29421I_5J .07842 -.05520 -.04400 -.14922 -.07386 -.03976 -.02599I_5K .16835 -.08750 -.14356 -.05362 -.12307 -.10308 -.21714I_5L .01839 .13274 .11443 .16779 .14445 .03109 .01978I_5M -.22795 .42458 .37474 .24222 .30600 .28024 .32265

I_3O I_4A I_4B I_4C I_4D I_4E I_4FI_3O 1.00000I_4A -.19520 1.00000I_4B .39448 -.20063 1.00000I_4C .33151 -.22249 .40933 1.00000I_4D .38549 -.17088 .38704 .48664 1.00000I_4E .50422 -.22539 .42288 .52718 .56760 1.00000I_4F .47271 -.26588 .45747 .46542 .44762 .59387 1.00000I_4G .36277 -.18481 .39780 .38332 .42063 .48672 .50908I_4H .40742 -.22561 .41192 .37233 .38975 .44581 .53125I_4I .36532 -.20750 .38501 .51287 .52199 .51243 .47766I_4J -.19055 .25025 -.13505 -.18924 -.14883 -.21915 -.21058

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I_4K .35935 -.13601 .28258 .19261 .25386 .28736 .27996I_4L -.13550 .39222 -.18793 -.12012 -.16022 -.15349 -.19445I_4M .25467 -.11489 .20411 .27901 .28804 .40706 .33135I_4N -.20510 .33320 -.22944 -.22317 -.23474 -.25987 -.27702I_5A -.31675 .32450 -.29766 -.35468 -.33918 -.38346 -.37524I_5B -.24942 .31808 -.26098 -.27107 -.33403 -.31322 -.29360I_5C .35720 -.24954 .34341 .37263 .43034 .49318 .43494I_5D .24806 -.14590 .20209 .16337 .14648 .16034 .20269I_5E .37481 -.21946 .34554 .26540 .31024 .32253 .33389I_5F .31162 -.15677 .29349 .35966 .33224 .37365 .37806I_5G .15633 -.05985 .16201 .08564 .15405 .09952 .14123I_5H -.16867 .35418 -.20656 -.22423 -.23210 -.22239 -.23835I_5I .32655 -.22930 .54818 .28442 .31331 .34750 .43504I_5J -.01724 .11675 -.05753 -.06052 -.07949 -.00589 -.00173I_5K -.15863 .13617 -.13343 -.13692 -.14579 -.14693 -.11844I_5L .10024 .00707 .08761 .02443 .06975 .04407 .07561I_5M .36081 -.23859 .43838 .33589 .31924 .39860 .46148

I_4G I_4H I_4I I_4J I_4K I_4L I_4MI_4G 1.00000I_4H .42495 1.00000I_4I .43346 .43706 1.00000I_4J -.21741 -.19094 -.17080 1.00000I_4K .26575 .24305 .24613 -.12538 1.00000I_4L -.14997 -.17688 -.17505 .23665 -.05244 1.00000I_4M .29282 .29280 .31881 -.11894 .21611 .00761 1.00000I_4N -.24984 -.22166 -.23344 .32541 -.10549 .38440 -.07120I_5A -.31335 -.29697 -.31082 .32523 -.15250 .33115 -.16973I_5B -.24672 -.26218 -.28933 .35345 -.16581 .38867 -.13741I_5C .32712 .35370 .39709 -.21143 .25691 -.21200 .32778I_5D .12111 .21615 .12786 -.08380 .18682 -.17287 .10573I_5E .32570 .35651 .26709 -.17940 .33206 -.25882 .18055I_5F .32736 .34328 .33752 -.45117 .20874 -.17322 .20144I_5G .13130 .15809 .11051 .02571 .24539 -.02166 .11451I_5H -.16493 -.22496 -.24305 .26594 -.11962 .38075 -.12928I_5I .32353 .43645 .30047 -.14094 .25491 -.22238 .16462I_5J -.05174 -.04898 -.07848 .03899 -.13970 .19437 .01205I_5K -.06139 -.10357 -.09490 .15626 -.11399 .12734 -.08317I_5L .08975 .07374 .05076 .07163 .19551 .05130 .08941I_5M .33189 .64388 .34419 -.16545 .22866 -.20954 .25041

I_4N I_5A I_5B I_5C I_5D I_5E I_5FI_4N 1.00000I_5A .42877 1.00000I_5B .40739 .53734 1.00000I_5C -.24627 -.33653 -.32756 1.00000I_5D -.14093 -.15324 -.09981 .23499 1.00000I_5E -.23159 -.27843 -.24840 .31303 .38408 1.00000I_5F -.19747 -.27364 -.25806 .38653 .21011 .35320 1.00000I_5G -.04708 .00376 -.05153 .12621 .13649 .27101 .10615I_5H .35305 .39717 .49997 -.27971 -.07782 -.18378 -.17809I_5I -.24183 -.26063 -.29618 .34607 .20997 .36908 .27325I_5J .18130 .15952 .22211 -.03879 .01163 -.11275 .00258I_5K .17619 .20972 .24350 -.15304 -.14269 -.08949 -.13989I_5L .01136 .03591 .06042 .04787 .07561 .18607 .02511I_5M -.19526 -.25513 -.25703 .33521 .22977 .32856 .32398

I_5G I_5H I_5I I_5J I_5K I_5L I_5MI_5G 1.00000I_5H .02648 1.00000I_5I .20412 -.23303 1.00000I_5J -.14194 .22237 -.08653 1.00000I_5K .00318 .19113 -.11632 .14192 1.00000I_5L .64248 .07544 .13499 -.11540 .10187 1.00000I_5M .20314 -.22987 .60255 -.05890 -.13410 .16243 1.00000

Extraction 1 for analysis 1, Principal Components Analysis (PC)

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- - - - - - - - - - - F A C T O R A N A L Y S I S - - - - - - - - - - -

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Initial Statistics:

Variable Communality * Factor Eigenvalue Pct of Var Cum Pct *I_1A 1.00000 * 1 20.28428 29.0 29.0I_1B 1.00000 * 2 3.16968 4.5 33.5I_1C 1.00000 * 3 2.53426 3.6 37.1I_1D 1.00000 * 4 2.27544 3.3 40.4I_1E 1.00000 * 5 1.90237 2.7 43.1I_1F 1.00000 * 6 1.73948 2.5 45.6I_1G 1.00000 * 7 1.45607 2.1 47.7I_1H 1.00000 * 8 1.38525 2.0 49.6I_1I 1.00000 * 9 1.22485 1.7 51.4I_1J 1.00000 * 10 1.16759 1.7 53.1I_1K 1.00000 * 11 1.10980 1.6 54.6I_1L 1.00000 * 12 1.02730 1.5 56.1I_1M 1.00000 * 13 1.01748 1.5 57.6

I_1N 1.00000 * 14 .98009 1.4 59.0I_2A 1.00000 * 15 .90769 1.3 60.3I_2B 1.00000 * 16 .88659 1.3 61.5I_2C 1.00000 * 17 .85652 1.2 62.7I_2D 1.00000 * 18 .82640 1.2 63.9I_2E 1.00000 * 19 .80714 1.2 65.1I_2F 1.00000 * 20 .79285 1.1 66.2I_2G 1.00000 * 21 .77782 1.1 67.3I_2H 1.00000 * 22 .75530 1.1 68.4I_2I 1.00000 * 23 .73690 1.1 69.5I_2J 1.00000 * 24 .72842 1.0 70.5I_2K 1.00000 * 25 .70838 1.0 71.5I_2L 1.00000 * 26 .68002 1.0 72.5I_2M 1.00000 * 27 .66246 .9 73.4I_2N 1.00000 * 28 .65611 .9 74.4I_3A 1.00000 * 29 .62698 .9 75.3I_3B 1.00000 * 30 .61318 .9 76.1I_3C 1.00000 * 31 .60861 .9 77.0I_3D 1.00000 * 32 .60485 .9 77.9I_3E 1.00000 * 33 .58232 .8 78.7I_3F 1.00000 * 34 .58119 .8 79.5I_3G 1.00000 * 35 .57369 .8 80.4I_3H 1.00000 * 36 .56269 .8 81.2I_3I 1.00000 * 37 .54876 .8 81.9I_3J 1.00000 * 38 .53654 .8 82.7I_3K 1.00000 * 39 .53226 .8 83.5I_3L 1.00000 * 40 .50707 .7 84.2I_3M 1.00000 * 41 .50414 .7 84.9I_3N 1.00000 * 42 .48984 .7 85.6I_3O 1.00000 * 43 .47811 .7 86.3I_4A 1.00000 * 44 .46842 .7 87.0I_4B 1.00000 * 45 .46368 .7 87.6I_4C 1.00000 * 46 .45928 .7 88.3I_4D 1.00000 * 47 .45121 .6 88.9I_4E 1.00000 * 48 .43999 .6 89.6I_4F 1.00000 * 49 .43111 .6 90.2I_4G 1.00000 * 50 .42662 .6 90.8I_4H 1.00000 * 51 .41395 .6 91.4I_4I 1.00000 * 52 .39888 .6 91.9I_4J 1.00000 * 53 .39134 .6 92.5I_4K 1.00000 * 54 .38656 .6 93.1I_4L 1.00000 * 55 .37164 .5 93.6I_4M 1.00000 * 56 .36512 .5 94.1I_4N 1.00000 * 57 .35079 .5 94.6I_5A 1.00000 * 58 .34896 .5 95.1I_5B 1.00000 * 59 .34087 .5 95.6Variable Communality * Factor Eigenvalue Pct of Var Cum Pct *I_5C 1.00000 * 60 .32509 .5 96.1I_5D 1.00000 * 61 .32433 .5 96.5I_5E 1.00000 * 62 .31249 .4 97.0I_5F 1.00000 * 63 .30561 .4 97.4I_5G 1.00000 * 64 .30072 .4 97.8

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I_5H 1.00000 * 65 .28702 .4 98.2I_5I 1.00000 * 66 .27311 .4 98.6I_5J 1.00000 * 67 .25843 .4 99.0I_5K 1.00000 * 68 .24295 .3 99.3I_5L 1.00000 * 69 .23557 .3 99.7I_5M 1.00000 * 70 .21953 .3 100.0

- - - - - - - - - - - F A C T O R A N A L Y S I S - - - - - - - - - - -

PC extracted 13 factors.

VARIMAX rotation 1 for extraction 1 in analysis 1 - KaiserNormalization.

VARIMAX converged in 10 iterations.

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Rotated Factor Matrix:

Factor 1 Factor 2 Factor 3 Factor 4 Factor5

I_5I .78513I_1H .76147I_2F .74750I_1I .74048I_3E .68318I_5M .64066I_2G .64029 .38232I_1N .63083I_4B .60019 .32269I_1D .54827 .32482I_3C .54264 .30491I_3I .53171I_3B .52722I_4H .48633 .38638I_2A .48012 .31882 .37099I_3A .40572 .36489I_3J .38169

I_4D .69007I_4E .65698I_4I .65156I_3M .61499I_4C .61013I_5C .54845I_4M .50018I_3N .48021 .34605I_4F .42562 .48015I_4G .46372 .30484

I_2E .31405 .59566I_2D .56499I_1K .55832I_1G .54268I_2B .31935 .53658I_2C .36634 .51323I_1E .33491 .49122I_2J .46440I_1L .44849

I_5H .66098I_4L .66025I_5B .65429I_4N .58890I_4A .55544I_5A .54966I_5J .46421I_3H .38905

I_2K .76994I_3D .75628I_2I .32013 .54086I_3O .32755 .45948I_5D .44143I_1A .37311 .37497

I_3LI_3F .30155I_2HI_1J .45882I_5E Factor 1 Factor 2 Factor 3 Factor 4 Factor5

I_1B .34856I_1CI_3K

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I_4K

I_3GI_2N

I_5GI_5L

I_4J .31232I_5F .33482

I_1MI_5K

I_2M

I_2L

I_1F .34721

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Factor 6 Factor 7 Factor 8 Factor 9 Factor10

I_5II_1HI_2FI_1II_3EI_5MI_2GI_1NI_4BI_1DI_3CI_3II_3BI_4HI_2AI_3AI_3J

I_4DI_4EI_4II_3MI_4CI_5CI_4MI_3NI_4FI_4G

I_2EI_2DI_1KI_1GI_2BI_2CI_1EI_2JI_1L

I_5HI_4L

I_5BI_4NI_4AI_5AI_5JI_3H .34251I_2KI_3DI_2II_3O .32306I_5D .31648I_1A

I_3L .69406I_3F .63847I_2H -.54682I_1J .54244I_5E .49822

Factor 6 Factor 7 Factor 8 Factor 9 Factor10

I_1B .70626I_1C .69224I_3K .65464

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I_4K .46327

I_3G .75557I_2N .74610

I_5G .85196I_5L .84870

I_4J -.67927I_5F .67340

I_1MI_5K

I_2M

I_2LI_1F

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Factor 11 Factor 12 Factor 13

I_5II_1HI_2FI_1II_3EI_5MI_2GI_1NI_4BI_1DI_3CI_3II_3B .31582I_4HI_2AI_3AI_3J

I_4DI_4EI_4II_3MI_4CI_5CI_4MI_3NI_4FI_4G

I_2EI_2DI_1KI_1GI_2BI_2CI_1EI_2JI_1L

I_5HI_4LI_5BI_4NI_4AI_5AI_5JI_3H .34559I_2KI_3DI_2II_3OI_5DI_1A -.30983

I_3LI_3FI_2HI_1JI_5E

I_1BI_1C Factor 11 Factor 12 Factor 13

I_3KI_4K

I_3GI_2N

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I_5GI_5L

I_4JI_5F

I_1M .68779I_5K -.67369

I_2M .53476

I_2L .77626I_1F .44449

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Factor Transformation Matrix:

Factor 1 Factor 2 Factor 3 Factor 4 Factor5

Factor 1 .60134 .43884 .38733 -.26018.27352Factor 2 .12255 .02222 .06034 .73231.30310Factor 3 -.53483 .65106 .27332 .10909.09796Factor 4 .38622 .07990 .32272 .30506 -.51511Factor 5 -.21974 .15054 .06232 -.18677 -.52261Factor 6 .13955 .33848 -.34766 -.13860 -.19583Factor 7 -.19429 .13769 -.07790 .33972 -.02891Factor 8 -.17696 -.38416 .53507 -.09210 -.01163Factor 9 -.07835 -.10380 .38318 .06014 -.03440Factor 10 -.09604 -.10554 .06905 -.24997.45203Factor 11 -.08251 -.11893 .23775 .02387 -.16258Factor 12 -.16120 .18406 .16941 -.16124.08321Factor 13 .05646 -.05431 .11638 -.14289 -.08411

Factor 6 Factor 7 Factor 8 Factor 9 Factor10

Factor 1 .25227 .20571 -.13910 .06648.12773Factor 2 -.05606 .33069 .28276 .28183 -.16610Factor 3 -.35255 .00690 -.09089 -.19387.14023Factor 4 -.17425 -.48044 -.02040 -.10691 -.01451Factor 5 .16477 .32975 .04178 .61336.04268Factor 6 .04770 -.05194 .59987 -.19831 -.04271Factor 7 .74795 -.23381 .00220 -.06436.41142Factor 8 .21128 .26905 .26236 -.44593.06297Factor 9 -.04275 -.26000 .33720 .32053.01394Factor 10 -.05833 -.50426 .14198 .36600.21020Factor 11 .04053 -.00675 -.35744 .10741 -.12324Factor 12 .28522 -.17663 .19572 -.01832 -.74719Factor 13 -.23842 .16081 .40208 .00536.37614

Factor 11 Factor 12 Factor 13

Factor 1 .07185 -.02196 -.03992Factor 2 -.01843 .16912 .15586Factor 3 .02983 .05440 -.01326Factor 4 -.23830 .22626 .02626

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Factor 5 -.14529 .27393 -.07319Factor 6 .45010 .21654 .17909Factor 7 -.07518 -.14309 .08568Factor 8 .03526 .36598 -.04824Factor 9 .43916 -.42741 -.41213Factor 10 -.07957 .44274 .22298Factor 11 .50526 -.07917 .69122Factor 12 -.33252 -.18696 .15333Factor 13 -.37572 -.46957 .45308

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Factor Loadings

Factor 1 Leader facilitation and support loadingItem# Item5i. Overall I think my immediate supervisor is doing a good job. .791h. Your supervisor is friendly and easy to approach. .762f. Your supervisor is attentive to what you say. .751i. Your supervisor offers new ideas for job and related problems. .743e. Your supervisor sets an example by working hard himself or herself. .685m. Your immediate supervisor is successful in dealing with higher levels of management .642g. Your supervisor provides the help you need to schedule your work ahead of time. .641n. Your supervisor encourages the people who work for him or her to exchange ideas and

opinions. .634b. Your supervisor encourages the people who work for them to work as a team. .601d. Staff members generally trust their supervisors. .553c. The ideas and suggestions of staff members are paid attention to. .543i. Supervisors generally know what is going on in their work groups. .533b. Your superior emphasises high standards of performance. .534h. Your manager is successful in his dealing with higher levels of management. .492a. Staff members generally trust their managers. .483a. You have good information on where you stand and how your performance is evaluated. .413j. You are aware of how well your work group is meeting its objectives. .38

Factor 2 Professional and organisational esprit4d. The hotel strives to do a better job than other hotels of the same type. .694e. The hotel emphasises personal growth and development. .664i. The objectives of the hotel are clearly defined. .653m. The hotel has a good image to outsiders. .624c. It is possible to get accurate information on the policies and objectives of this hotel. .615c. Under most circumstances I would recommend this hotel to a prospective staff member. .554m. This hotel is concerned with assisting the local community. .503n. Working in this hotel is beneficial to your career. .484f. Managers keep well informed about the needs and problems of employees. .484g. Discipline in this hotel is maintained consistently. .46

Factor 3 Conflict and ambiguity2e. Procedures are designed so that resources are used efficiently. .602d. You have opportunities to complete the work you start. .571k. Your job responsibilities are clearly defined. .561g. You are able to get the money, supplies, equipment, etc. your work group needs

to do its work well. .542b. You are given advanced information about changes which might affect you. .542c. The hotel�s policies are consistently applied to all staff members. .511e. The methods of your work are kept up to date. .492j. New staff members get on-the-job training they need. .461l. Responsibility is assigned so that individuals have authority within their own area. .45

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Factor 4 Regulations, organisation and pressure5h. Excessive rules and regulations interfere with how well I am able to do my job. .664l. The way your work group is organised hinders the efficient conduct of work. .665b. In this hotel things are planned so that everyone is getting in each others� way. .654n. Things in this hotel seem to happen contrary to rules and regulations. .594a. Communication is hindered by following chain of command rules. .565a. In this hotel the only source of information on important matters is the grapevine. .555j. Compared with other work groups, my work group is under much less

pressure to produce. .463h. People act as though everyone must be watched or they will slacken off. .39

Factor 5 Job variety, challenge and autonomy2k. There is variety in your job. .773d. You have the opportunity to do a number of different things in your job. .762i. You have opportunities to learn worthwhile skills and knowledge in your job. .543o. You have opportunities to make full use of your knowledge and skills in your job. .465d. Most of the personnel in my department would not want to change to another

department. .441a. Opportunity for independent thought and action exists in your job. .37

Factor 6 Workgroup co-operation, friendliness and warmth3l. Members of your work group trust each other. .693f. A friendly atmosphere prevails among most of the members of your workgroup. .642h. There is friction in your workgroup. -.551j. A spirit of cooperation exists in your workgroup. .545e. Most members of my work group take pride in their jobs. .50

Factor 7 Job standards1b. Your job requires a high level of skill and training. .711c. You are required to meet rigid standards of quality in your work. .693k. Your job demands precision. .664k. Your work is important. .46

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4. Oneway ANOVAs of new Organisational Climate Dimensions and Composite Measure of OrganisationalClimate

- - - - - O N E W A Y - - - - -

Variable F1 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 133.4169 11.1181 11.0268 .0000Within Groups 1566 1578.9603 1.0083Total 1578 1712.3772

Variable F2 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 130.8890 10.9074 12.7682 .0000Within Groups 1612 1377.0711 .8543Total 1624 1507.9600

Variable F3 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 75.6003 6.3000 6.3853 .0000Within Groups 1626 1604.2743 .9866Total 1638 1679.8745

Variable F4 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 133.4651 11.1221 11.8983 .0000Within Groups 1596 1491.8868 .9348Total 1608 1625.3519

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- - - - - O N E W A Y - - - - -

Variable F5 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 111.4105 9.2842 6.9393 .0000Within Groups 1632 2183.4695 1.3379Total 1644 2294.8800

Variable F6 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 67.5928 5.6327 10.5933 .0000Within Groups 1641 872.5589 .5317Total 1653 940.1517

- - - - - O N E W A Y - - - - -

Variable F7 By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 79.7824 6.6485 7.6118 .0000Within Groups 1650 1441.1894 .8734Total 1662 1520.9718

Variable CLIMATE By Variable HOTEL hotel code

Analysis of Variance

Sum of Mean F F Source D.F. Squares Squares Ratio Prob.

Between Groups 12 33.0528 2.7544 7.5921 .0000Within Groups 1367 495.9426 .3628Total 1379 528.9954

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Appendix F

Model Testing

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Part 1 Structural Equation Model A

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Multiple Linear Regression

- - Correlation Coefficients - -

CLIMATE GENDER AGE EDUCAT LENGTH_S LENGTH_J GRS_SAL HOURS MODEMPL TRAINSES

CLIMATE 1.0000 .0207 -.0193 -.0399 -.0214 -.0338 .1074 .1475 -.0904 -.1198 ( 1443) ( 1418) ( 1410) ( 1397) ( 1417) ( 1408) ( 1367) ( 1405) ( 1398) ( 1360) P= . P= .436 P= .469 P= .136 P= .421 P= .204 P= .000 P= .000 P= .001 P= .000

GENDER .0207 1.0000 -.0439 -.0328 -.0725 -.0837 -.1829 -.1361 .1111 -.0915 ( 1418) ( 1741) ( 1723) ( 1701) ( 1730) ( 1714) ( 1656) ( 1708) ( 1706) ( 1647) P= .436 P= . P= .068 P= .176 P= .003 P= .001 P= .000 P= .000 P= .000 P= .000

AGE -.0193 -.0439 1.0000 -.2350 .4440 .4114 .2147 .0758 -.2307 .1537 ( 1410) ( 1723) ( 1731) ( 1695) ( 1724) ( 1708) ( 1649) ( 1701) ( 1695) ( 1640) P= .469 P= .068 P= . P= .000 P= .000 P= .000 P= .000 P= .002 P= .000 P= .000

EDUCAT -.0399 -.0328 -.2350 1.0000 -.1501 -.1367 .0513 -.0048 .0657 -.0629 ( 1397) ( 1701) ( 1695) ( 1711) ( 1704) ( 1687) ( 1635) ( 1684) ( 1677) ( 1623) P= .136 P= .176 P= .000 P= . P= .000 P= .000 P= .038 P= .844 P= .007 P= .011

LENGTH_S -.0214 -.0725 .4440 -.1501 1.0000 .7285 .2902 .1847 -.3123 .1194 ( 1417) ( 1730) ( 1724) ( 1704) ( 1739) ( 1720) ( 1657) ( 1711) ( 1706) ( 1648) P= .421 P= .003 P= .000 P= .000 P= . P= .000 P= .000 P= .000 P= .000 P= .000

LENGTH_J -.0338 -.0837 .4114 -.1367 .7285 1.0000 .2158 .0894 -.2423 .1610 ( 1408) ( 1714) ( 1708) ( 1687) ( 1720) ( 1726) ( 1658) ( 1706) ( 1701) ( 1644) P= .204 P= .001 P= .000 P= .000 P= .000 P= . P= .000 P= .000 P= .000 P= .000

GRS_SAL .1074 -.1829 .2147 .0513 .2902 .2158 1.0000 .6509 -.5637 .0399 ( 1367) ( 1656) ( 1649) ( 1635) ( 1657) ( 1658) ( 1669) ( 1651) ( 1639) ( 1595) P= .000 P= .000 P= .000 P= .038 P= .000 P= .000 P= . P= .000 P= .000 P= .111

HOURS .1475 -.1361 .0758 -.0048 .1847 .0894 .6509 1.0000 -.6566 .0029 ( 1405) ( 1708) ( 1701) ( 1684) ( 1711) ( 1706) ( 1651) ( 1727) ( 1710) ( 1645) P= .000 P= .000 P= .002 P= .844 P= .000 P= .000 P= .000 P= . P= .000 P= .907

MODEMPL -.0904 .1111 -.2307 .0657 -.3123 -.2423 -.5637 -.6566 1.0000 -.0619 ( 1398) ( 1706) ( 1695) ( 1677) ( 1706) ( 1701) ( 1639) ( 1710) ( 1719) ( 1638) P= .001 P= .000 P= .000 P= .007 P= .000 P= .000 P= .000 P= .000 P= . P= .012

TRAINSES -.1198 -.0915 .1537 -.0629 .1194 .1610 .0399 .0029 -.0619 1.0000 ( 1360) ( 1647) ( 1640) ( 1623) ( 1648) ( 1644) ( 1595) ( 1645) ( 1638) ( 1663) P= .000 P= .000 P= .000 P= .011 P= .000 P= .000 P= .111 P= .907 P= .012 P= .

(Coefficient / (Cases) / 2-tailed Significance) ‘ . ‘ is printed if a coefficient cannot be computed

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* * * * M U L T I P L E R E G R E S S I O N * * * *

Listwise Deletion of Missing Data

Equation Number 1 Dependent Variable.. CLIMATE

Block Number 1. Method: Enter GENDER AGE EDUCAT LENGTH_S LENGTH_J GRS_SAL HOURS MODEMPL TRAINSES

Variable(s) Entered on Step Number 1.. TRAINSES last training session 2.. GRS_SAL current gross salary 3.. EDUCAT education level 4.. GENDER gender 5.. LENGTH_J length of job 6.. AGE age 7.. MODEMPL mode of employment 8.. LENGTH_S length of service 9.. HOURS hours worked per week

Multiple R .21227 Analysis of VarianceR Square .04506 DF Sum of Squares Mean SquareAdjusted R Square .03821 Regression 9 20.92228 2.32470Standard Error .59464 Residual 1254 443.40578 .35359

F = 6.57450 Signif F = .0000

------------------ Variables in the Equation ------------------

Variable B SE B Beta T Sig T

GENDER .047572 .034458 .039192 1.381 .1677AGE -.006936 .018501 -.012163 -.375 .7078EDUCAT -.017371 .010754 -.046347 -1.615 .1065LENGTH_S -.013752 .024284 -.023310 -.566 .5713LENGTH_J -.008069 .025006 -.012781 -.323 .7470GRS_SAL .021161 .013775 .061422 1.536 .1248HOURS .041617 .013458 .132591 3.092 .0020MODEMPL -8.69224E-04 .026909 -.001276 -.032 .9742TRAINSES -.050640 .013198 -.108827 -3.837 .0001(Constant) 4.605277 .156497 29.427 .0000

End Block Number 1 All requested variables entered.

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Thu Mar 16 15:53:40 2000

Amos Version 3.61 (w32)

by James L. Arbuckle

Copyright 1994-1997 SmallWaters Corporation 1507 E. 53rd Street - #452 Chicago, IL 60615 USA 773-667-8635 Fax: 773-955-6252 http://www.smallwaters.com

******************************************** * Structural Model A * *------------------------------------------* * * ********************************************

Serial number 55501773

Structural Model A Page 1

User-selected options

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---------------------

Output:

Maximum Likelihood

Output format options:

Compressed output

Minimization options:

Technical output Machine-readable output file

Sample size: 1207

Your model contains the following variables

climate observed endogenous cs_over observed endogenous

gender observed exogenous age observed exogenous educat observed exogenous length_s observed exogenous length_j observed exogenous grs_sal observed exogenous hours observed exogenous modempl observed exogenous trainses observed exogenous

other2 unobserved exogenous other unobserved exogenous

Number of variables in your model: 13 Number of observed variables: 11 Number of unobserved variables: 2 Number of exogenous variables: 11 Number of endogenous variables: 2

Summary of Parameters

Weights Covariances Variances Means Intercepts Total ------- ----------- --------- ----- ---------- ----- Fixed: 2 0 0 0 0 2 Labeled: 0 0 0 0 0 0 Unlabeled: 10 36 11 0 0 57 ------- ----------- --------- ----- ---------- ----- Total: 12 36 11 0 0 59

The model is recursive.

Model: Your_modelComputation of Degrees of Freedom

Number of distinct sample moments: 66 Number of distinct parameters to be estimated: 57 ------------------------- Degrees of freedom: 9

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Minimization History

0e 8 0.0e+00 -4.1849e-01 1.00e+04 3.36432295221e+03 0 1.00e+04 1e 0 1.9e+01 0.0000e+00 8.71e-01 8.91386526368e+02 18 1.02e+00 2e 0 1.2e+02 0.0000e+00 4.47e-01 5.93916156150e+02 2 0.00e+00 3e 0 5.3e+01 0.0000e+00 4.47e-01 1.91502709126e+02 1 1.24e+00 4e 0 7.3e+01 0.0000e+00 3.75e-01 7.69821486886e+01 1 1.20e+00 5e 0 1.1e+02 0.0000e+00 2.25e-01 5.91740289912e+01 1 1.12e+00 6e 0 1.2e+02 0.0000e+00 6.10e-02 5.84641179855e+01 1 1.03e+00 7e 0 1.2e+02 0.0000e+00 3.53e-03 5.84623686521e+01 1 1.00e+00 8e 0 1.2e+02 0.0000e+00 1.10e-05 5.84623686370e+01 1 1.00e+00

Minimum was achieved

Chi-square = 58.462Degrees of freedom = 9Probability level = 0.000

Maximum Likelihood Estimates----------------------------

Regression Weights: Estimate S.E. C.R. Label------------------- -------- ------- ------- -------

climate <------- gender 0.055 0.035 1.585 climate <---------- age -0.006 0.019 -0.336 climate <------- educat -0.016 0.011 -1.448 climate <----- length_s -0.013 0.024 -0.545 climate <----- length_j -0.011 0.025 -0.416 climate <------ grs_sal 0.021 0.014 1.477 climate <-------- hours 0.039 0.013 2.854 climate <------ modempl -0.012 0.027 -0.433 climate <----- trainses -0.051 0.014 -3.778 cs_over <------ climate 0.478 0.030 16.088

Covariances: Estimate S.E. C.R. Label------------ -------- ------- ------- -------

modempl <----> trainses -0.042 0.033 -1.275 hours <------> trainses -0.063 0.072 -0.866 grs_sal <----> trainses 0.023 0.065 0.353 length_j <---> trainses 0.229 0.035 6.549 length_s <---> trainses 0.174 0.037 4.681 educat <-----> trainses -0.165 0.060 -2.735 age <--------> trainses 0.219 0.040 5.542 gender <-----> trainses -0.039 0.019 -2.129 hours <-------> modempl -1.173 0.061 -19.393 grs_sal <-----> modempl -0.918 0.052 -17.492 length_j <----> modempl -0.184 0.024 -7.511 length_s <----> modempl -0.278 0.027 -10.357 educat <------> modempl 0.094 0.042 2.250 age <---------> modempl -0.227 0.028 -8.129 gender <------> modempl 0.052 0.013 4.006 grs_sal <-------> hours 2.322 0.119 19.458 length_j <------> hours 0.227 0.052 4.333 length_s <------> hours 0.396 0.057 6.952 educat <--------> hours -0.015 0.091 -0.167 age <-----------> hours 0.226 0.059 3.800

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gender <--------> hours -0.144 0.028 -5.101 length_j <----> grs_sal 0.387 0.048 8.010 length_s <----> grs_sal 0.561 0.053 10.590 educat <------> grs_sal 0.129 0.082 1.572 age <---------> grs_sal 0.418 0.055 7.644 gender <------> grs_sal -0.190 0.026 -7.320 length_s <---> length_j 0.625 0.032 19.449 educat <-----> length_j -0.167 0.044 -3.835 age <--------> length_j 0.386 0.030 12.760 gender <-----> length_j -0.049 0.013 -3.641 educat <-----> length_s -0.225 0.047 -4.807 age <--------> length_s 0.460 0.033 13.947 gender <-----> length_s -0.044 0.014 -3.096 age <----------> educat -0.368 0.050 -7.320 gender <-------> educat -0.010 0.023 -0.426 gender <----------> age -0.038 0.015 -2.524

Variances: Estimate S.E. C.R. Label---------- -------- ------- ------- -------

gender 0.249 0.010 24.556 age 1.108 0.045 24.556 educat 2.626 0.107 24.556 length_s 0.991 0.040 24.556 length_j 0.861 0.035 24.556 grs_sal 3.102 0.126 24.556 hours 3.800 0.155 24.556 modempl 0.800 0.033 24.556 trainses 1.655 0.067 24.556 other2 0.345 0.014 24.556 other 0.385 0.016 24.556

Summary of models-----------------

Model NPAR CMIN DF P CMIN/DF ---------------- ---- --------- -- --------- --------- Your_model 57 58.462 9 0.000 6.496 Saturated model 66 0.000 0 Independence model 11 3332.678 55 0.000 60.594

Model RMR GFI AGFI PGFI ---------------- ---------- ---------- ---------- ---------- Your_model 0.039 0.991 0.937 0.135 Saturated model 0.000 1.000 Independence model 0.390 0.637 0.564 0.531

DELTA1 RHO1 DELTA2 RHO2 Model NFI RFI IFI TLI CFI ---------------- ---------- ---------- ---------- ---------- ---------- Your_model 0.982 0.893 0.985 0.908 0.985 Saturated model 1.000 1.000 1.000 Independence model 0.000 0.000 0.000 0.000 0.000

Model PRATIO PNFI PCFI ---------------- ---------- ---------- ---------- Your_model 0.164 0.161 0.161

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Saturated model 0.000 0.000 0.000 Independence model 1.000 0.000 0.000

Model NCP LO 90 HI 90 ---------------- ---------- ---------- ---------- Your_model 49.462 28.937 77.483 Saturated model 0.000 0.000 0.000 Independence model 3277.678 3092.130 3470.521

Model FMIN F0 LO 90 HI 90 ---------------- ---------- ---------- ---------- ---------- Your_model 0.048 0.041 0.024 0.064 Saturated model 0.000 0.000 0.000 0.000 Independence model 2.763 2.718 2.564 2.878

Model RMSEA LO 90 HI 90 PCLOSE ---------------- ---------- ---------- ---------- ---------- Your_model 0.068 0.052 0.084 0.035 Independence model 0.222 0.216 0.229 0.000

Model AIC BCC BIC CAIC ---------------- ---------- ---------- ---------- ---------- Your_model 172.462 173.608 599.608 519.928 Saturated model 132.000 133.327 626.590 534.329 Independence model 3354.678 3354.899 3437.109 3421.733

Model ECVI LO 90 HI 90 MECVI ---------------- ---------- ---------- ---------- ---------- Your_model 0.143 0.126 0.166 0.144 Saturated model 0.109 0.109 0.109 0.111 Independence model 2.782 2.628 2.942 2.782

HOELTER HOELTER Model .05 .01 ---------------- ---------- ---------- Your_model 350 447 Independence model 27 30

Execution time summary:

Minimization: 0.380 Miscellaneous: 0.149 Bootstrap: 0.000 Total: 0.529

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Part 2 Structural Equation Model B

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- - Correlation Coefficients - -

CS_OVER F1 F2 F3 F4 F5 F6 F7

CS_OVER 1.0000 .3859 .5337 .4116 -.3088 .2928 .2940 .2467 ( 1686) ( 1565) ( 1609) ( 1619) ( 1597) ( 1634) ( 1636) ( 1647) P= . P= .000 P= .000 P= .000 P= .000 P= .000 P= .000 P= .000

F1 .3859 1.0000 .7021 .7407 -.4852 .6388 .6066 .4491 ( 1565) ( 1650) ( 1602) ( 1598) ( 1585) ( 1612) ( 1621) ( 1626) P= .000 P= . P= .000 P= .000 P= .000 P= .000 P= .000 P= .000

F2 .5337 .7021 1.0000 .7096 -.4526 .6077 .4904 .4372 ( 1609) ( 1602) ( 1700) ( 1636) ( 1632) ( 1653) ( 1658) ( 1673) P= .000 P= .000 P= . P= .000 P= .000 P= .000 P= .000 P= .000

F3 .4116 .7407 .7096 1.0000 -.4342 .5743 .5002 .4268 ( 1619) ( 1598) ( 1636) ( 1711) ( 1623) ( 1660) ( 1664) ( 1673) P= .000 P= .000 P= .000 P= . P= .000 P= .000 P= .000 P= .000

F4 -.3088 -.4852 -.4526 -.4342 1.0000 -.3449 -.3048 -.2506 ( 1597) ( 1585) ( 1632) ( 1623) ( 1682) ( 1638) ( 1644) ( 1655) P= .000 P= .000 P= .000 P= .000 P= . P= .000 P= .000 P= .000

F5 .2928 .6388 .6077 .5743 -.3449 1.0000 .5265 .5571 ( 1634) ( 1612) ( 1653) ( 1660) ( 1638) ( 1717) ( 1680) ( 1686) P= .000 P= .000 P= .000 P= .000 P= .000 P= . P= .000 P= .000

F6 .2940 .6066 .4904 .5002 -.3048 .5265 1.0000 .4176 ( 1636) ( 1621) ( 1658) ( 1664) ( 1644) ( 1680) ( 1728) ( 1693) P= .000 P= .000 P= .000 P= .000 P= .000 P= .000 P= . P= .000

F7 .2467 .4491 .4372 .4268 -.2506 .5571 .4176 1.0000 ( 1647) ( 1626) ( 1673) ( 1673) ( 1655) ( 1686) ( 1693) ( 1740) P= .000 P= .000 P= .000 P= .000 P= .000 P= .000 P= .000 P= .

(Coefficient / (Cases) / 2-tailed Significance) ‘ . ‘ is printed if a coefficient cannot becomputed

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* * * * M U L T I P L E R E G R E S S I O N * * * *

Listwise Deletion of Missing Data

Equation Number 1 Dependent Variable.. CS_OVER cust satis - overall

Block Number 1. Method: Enter F1 F2 F3 F4 F5 F6 F7

Variable(s) Entered on Step Number 1.. F7 2.. F4 3.. F6 4.. F3 5.. F5 6.. F2 7.. F1

Multiple R .54734 Analysis of VarianceR Square .29958 DF Sum of Squares Mean SquareAdjusted R Square .29601 Regression 7 200.14226 28.59175Standard Error .58358 Residual 1374 467.94240 .34057

F = 83.95278 Signif F = .0000

------------------ Variables in the Equation ------------------

Variable B SE B Beta T Sig T

F1 -.009840 .027004 -.014670 -.364 .7156F2 .350973 .025594 .489812 13.713 .0000F3 .045969 .024968 .066625 1.841 .0658F4 -.050000 .019042 -.070336 -2.626 .0087F5 -.057323 .019459 -.098170 -2.946 .0033F6 .044920 .027861 .047276 1.612 .1071F7 .022011 .020563 .029941 1.070 .2846(Constant) 2.024319 .176928 11.441 .0000

End Block Number 1 All requested variables entered.

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Wed Dec 15 14:29:181999

Amos Version 3.61 (w32)

by James L. Arbuckle

Copyright 1994-1997 SmallWaters Corporation 1507 E. 53rd Street - #452 Chicago, IL 60615 USA 773-667-8635 Fax: 773-955-6252 http://www.smallwaters.com

******************************************** * Structural Model B * *------------------------------------------* * * ********************************************

Serial number 55501773

Structural Model B Page 1

User-selected options---------------------

Output:

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Maximum Likelihood

Output format options:

Compressed output

Minimization options:

Technical output Standardized estimates Squared multiple correlations Machine-readable output file

Sample size: 1443

Your model contains the following variables

cs_over observed endogenous revpari observed endogenous

f1 observed exogenous f2 observed exogenous f3 observed exogenous f4 observed exogenous f5 observed exogenous f6 observed exogenous f7 observed exogenous

other1 unobserved exogenous other2 unobserved exogenous

Number of variables in your model: 11 Number of observed variables: 9 Number of unobserved variables: 2 Number of exogenous variables: 9 Number of endogenous variables: 2

Summary of Parameters

Weights Covariances Variances Means InterceptsTotal ------- ----------- --------- ----- ---------- ----- Fixed: 2 0 0 0 0 2 Labeled: 0 0 0 0 0 0 Unlabeled: 8 21 9 7 2 47 ------- ----------- --------- ----- ---------- ----- Total: 10 21 9 7 2 49

The model is recursive.

Model: Your_modelComputation of Degrees of Freedom

Number of distinct sample moments: 54 Number of distinct parameters to be estimated: 47 ------------------------- Degrees of freedom: 7

Minimization History

0e 12 0.0e+00 -4.4127e-01 1.00e+04 2.96540527289e+05 0 1.00e+04 1e 10 0.0e+00 -5.0243e-01 2.34e+00 1.53851730515e+05 15 1.07e+00 2e* 1 0.0e+00 -2.7700e-03 3.28e+00 6.70092425028e+04 6 1.09e+00

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3e 0 2.5e+04 0.0000e+00 5.82e+00 1.07828142652e+04 5 9.40e-01 4e 0 2.6e+04 0.0000e+00 1.02e+00 8.78426152151e+03 6 0.00e+00 5e 0 2.4e+04 0.0000e+00 2.88e+00 3.07830203044e+03 2 0.00e+00 6e 0 2.4e+04 0.0000e+00 1.19e+00 1.29238805525e+03 1 1.26e+00 7e 0 2.4e+04 0.0000e+00 4.72e-01 5.36309430307e+02 1 1.28e+00 8e 0 2.4e+04 0.0000e+00 4.99e-01 2.02279336772e+02 1 1.27e+00 9e 0 2.4e+04 0.0000e+00 5.03e-01 7.93102165909e+01 1 1.23e+00 10e 0 2.4e+04 0.0000e+00 3.73e-01 5.13381868729e+01 1 1.16e+00 11e 0 2.4e+04 0.0000e+00 1.47e-01 4.90271902153e+01 1 1.06e+00 12e 0 2.4e+04 0.0000e+00 1.68e-02 4.90036264275e+01 1 1.01e+00 13e 0 2.4e+04 0.0000e+00 1.93e-04 4.90036234268e+01 1 1.00e+00

Minimum was achieved

Chi-square = 49.004Degrees of freedom = 7Probability level = 0.000

Maximum Likelihood Estimates----------------------------

Regression Weights: Estimate S.E. C.R. Label------------------- -------- ------- ------- -------

cs_over <--------- f1 -0.068 0.053 -1.288 cs_over <--------- f2 0.350 0.051 6.883 cs_over <--------- f3 0.090 0.049 1.820 cs_over <--------- f4 -0.017 0.037 -0.468 cs_over <--------- f5 -0.047 0.038 -1.235 cs_over <--------- f6 -0.035 0.055 -0.637 cs_over <--------- f7 0.049 0.041 1.196 revpari <---- cs_over 2.393 0.455 5.257

Standardized Regression Weights: Estimate-------------------------------- --------

cs_over <--------- f1 -0.058 cs_over <--------- f2 0.279 cs_over <--------- f3 0.075 cs_over <--------- f4 -0.014 cs_over <--------- f5 -0.046 cs_over <--------- f6 -0.021 cs_over <--------- f7 0.038 revpari <---- cs_over 0.137Means: Estimate S.E. C.R. Label------ -------- ------- ------- -------

f1 5.131 0.028 186.311 f2 5.193 0.026 201.990 f3 4.976 0.027 185.788 f4 3.537 0.026 137.134 f5 4.866 0.032 154.356 f6 4.992 0.019 256.837 f7 5.641 0.025 225.760

Intercepts: Estimate S.E. C.R. Label----------- -------- ------- ------- -------

cs_over 2.410 0.344 7.007 revpari 80.307 1.963 40.908

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Covariances: Estimate S.E. C.R. Label------------ -------- ------- ------- -------

f6 <-------------> f7 0.295 0.020 14.723 f5 <-------------> f7 0.645 0.034 18.757 f4 <-------------> f7 -0.241 0.025 -9.530 f3 <-------------> f7 0.401 0.028 14.566 f2 <-------------> f7 0.405 0.027 15.214 f1 <-------------> f7 0.453 0.029 15.756 f5 <-------------> f6 0.465 0.026 17.691 f4 <-------------> f6 -0.232 0.020 -11.616 f3 <-------------> f6 0.371 0.022 16.813 f2 <-------------> f6 0.358 0.021 16.900 f1 <-------------> f6 0.469 0.024 19.713 f4 <-------------> f5 -0.425 0.033 -12.951 f3 <-------------> f5 0.691 0.037 18.749 f2 <-------------> f5 0.710 0.036 19.706 f1 <-------------> f5 0.802 0.039 20.479 f3 <-------------> f4 -0.439 0.029 -15.328 f2 <-------------> f4 -0.451 0.028 -16.185 f1 <-------------> f4 -0.504 0.030 -16.775 f2 <-------------> f3 0.705 0.032 21.992 f1 <-------------> f3 0.782 0.035 22.494 f1 <-------------> f2 0.717 0.033 21.820

Correlations: Estimate------------- --------

f6 <-------------> f7 0.421 f5 <-------------> f7 0.568 f4 <-------------> f7 -0.259 f3 <-------------> f7 0.415 f2 <-------------> f7 0.437 f1 <-------------> f7 0.456 f5 <-------------> f6 0.527 f4 <-------------> f6 -0.321 f3 <-------------> f6 0.494 f2 <-------------> f6 0.497 f1 <-------------> f6 0.607 f4 <-------------> f5 -0.363 f3 <-------------> f5 0.568 f2 <-------------> f5 0.607 f1 <-------------> f5 0.640 f3 <-------------> f4 -0.441 f2 <-------------> f4 -0.471 f1 <-------------> f4 -0.492 f2 <-------------> f3 0.710 f1 <-------------> f3 0.735 f1 <-------------> f2 0.702

Variances: Estimate S.E. C.R. Label---------- -------- ------- ------- -------

f1 1.094 0.041 26.851 f2 0.953 0.036 26.851 f3 1.035 0.039 26.851 f4 0.959 0.036 26.851 f5 1.433 0.053 26.851 f6 0.545 0.020 26.851 f7 0.900 0.034 26.851 other1 1.387 0.052 26.851 other2 450.482 16.777 26.851

Squared Multiple Correlations: Estimate------------------------------ --------

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cs_over 0.080 revpari 0.019

Summary of models-----------------

Model NPAR CMIN DF P CMIN/DF ---------------- ---- --------- -- --------- --------- Your_model 47 49.004 7 0.000 7.001 Saturated model 54 0.000 0 Independence model 9 45950.334 45 0.000 1021.119

DELTA1 RHO1 DELTA2 RHO2 Model NFI RFI IFI TLICFI ---------------- ---------- ---------- ---------- ---------- ---------- Your_model 0.999 0.993 0.999 0.9940.999 Saturated model 1.000 1.0001.000 Independence model 0.000 0.000 0.000 0.0000.000

Model PRATIO PNFI PCFI ---------------- ---------- ---------- ---------- Your_model 0.156 0.155 0.155 Saturated model 0.000 0.000 0.000 Independence model 1.000 0.000 0.000

Model NCP LO 90 HI 90 ---------------- ---------- ---------- ---------- Your_model 42.004 23.438 68.055 Saturated model 0.000 0.000 0.000 Independence model 45905.334 45203.467 46613.479

Model FMIN F0 LO 90 HI 90 ---------------- ---------- ---------- ---------- ---------- Your_model 0.034 0.029 0.016 0.047 Saturated model 0.000 0.000 0.000 0.000 Independence model 31.866 31.834 31.348 32.326

Model RMSEA LO 90 HI 90 PCLOSE ---------------- ---------- ---------- ---------- ---------- Your_model 0.065 0.048 0.082 0.071 Independence model 0.841 0.835 0.848 0.000

Model AIC BCC BIC CAIC ---------------- ---------- ---------- ---------- ---------- Your_model 143.004 143.660 Saturated model 108.000 108.754 Independence model 45968.334 45968.460

Model ECVI LO 90 HI 90 MECVI ---------------- ---------- ---------- ---------- ----------

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Your_model 0.099 0.086 0.117 0.100 Saturated model 0.075 0.075 0.075 0.075 Independence model 31.878 31.391 32.369 31.878

HOELTER HOELTER Model .05 .01 ---------------- ---------- ---------- Your_model 414 544 Independence model 2 3

Execution time summary:

Minimization: 0.385 Miscellaneous: 0.122 Bootstrap: 0.000 Total: 0.507

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