Full Project – The effectiveness of health insurance as a motivational tool in the hotel industry

Full Project – The effectiveness of health insurance as a motivational tool in the hotel industry

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1.1 Background of Study

The changes in the industrial area have also caused the changes in the importance of the resources used for the economic development within the process (Taban and Kar, 2006). The importance given to the concrete and physical assets by enterprises in the industrial society and economy such as facilities and equipment has been replaced by the importance given to the abstract values such as knowledge and competence possessed by the workers of those enterprises as a result of the transition to information society and economy.

Although this value, which provides advantage to enterprises in competition, has been expressed by various concepts such as intellectual capital and human capital, it stands for the qualified, knowledgeable and skillful human resources that add value to the enterprise they work for. Tangibleassets always create value in the hotel industry, but an even greater part of the value in the hotelindustry for which customers are willing to pay now is being created through the human capital alsoknown as intellectual capital (Rudez and Mihalic, 2007).

In spite of their different spheres of activity, the common point is to make the best use of this resource for most of the enterprises. As for the hotel and hospitality establishments, human resources, which are crucial for most of the enterprises within the industry, may have a direct impact on the enterprise’s ontology as the product is abstract and the quality of that product is determined by the qualifications of the distributor. Reflecting the quality of this resource to the products of the enterprise or ensuring the productivity for the best interest of the enterprise can only be achieved through motivation.


1.2 Statement of Problem

The ultimate product in hospitality industry exhibits abstract features after being added concrete ingredients and then offered as a service. To this end, the quality of service offered as a whole has been used as a competition element in the market by enterprises. Within this sector where human serves human, quality – as a whole offering by service providers- is assured by the human resources that decide on service delivery. Employee work motivation more important in a customer service oriented business such as the hospitality and tourism industries (Lundberg et al., 2009). This factor, which creates a value within the competition by affecting the quality of enterprises, may lead to “reluctance”, “unproductiveness” and “employee turnover rate” when it is not properly managed. The challenges for the top managers here is the creation of a context within which employees feel motivated and will act in order to achieve the goals of the organization. (Lundberg et al., 2009)

In this study, the importance of motivation as a tool for employee retention in hotel industry is stressed and health insurance as a tool for employee motivation are analyzed.

1.3 Research Question

This study aims to answer the following questions:

1, what are the socio-economic characteristics of respondents under investigation?

  1. What is the level of awareness of employees on health insurance as a motivational tool?

2, what is the impact of employee health insurance on job satisfaction?

3, what type and form of employee motivation has greater influence on respondents?


1.4Aims and Objective of the Study

The broad objective of this study wasto assess the efficacy of health insurance as a motivational tool to hotel growth. Other specific objectives are as follow:

  1. To determine the socio-economic characteristics of the respondents
  2. The determine the awareness of health insurance as a motivational tool
  3. To determine the impact of health insurance on job satisfaction.
  4. To determine other form of motivation that the hotel under study employed to motivate staff.


1.5 Research Hypothesis

H0: There is no significant relationship between employee demographic characteristics and their perception of employee motivation.

H1: There is significant relationship between employee demographic characteristics and their perception of employee motivation.


1.6     Significance of the Study

Data collected within this study will provide an important source in terms of bringing up factors that motivate hotel business employees, also assist managers to boost employees’ productivity and effectiveness.

1.7     Scope and Limitation of Study

The study limited itself to hotels in Ikorodu, Lagos State, Nigeria. The size of the sample also limits generalization of results to other Hotel from the hospitality industry.

1.8 Definition of terms

Efficacy: The degree to which something is successful in producing a desired result and success.

Employee:A person employed for wages or salary, especially at non-executive level.

Health insurance:  Is a type of insurance coverage that covers the cost of an insured individual’s medical and surgical expenses

Hotel: Commercial establishment providing lodging, meals and other guest services. An hotel must have a minimum of Six letting bedrooms, at least three of which must have attached (ensuite) private bathroom facilities.

Hotel Growth: The process of improving some measures of hotel success, this can be achieved either by boosting the top line or revenue of hotel with greater product sales or service income.

Job Satisfaction: Is a measure of worker’s contentedness with their job, whether or not they like the job or individual aspects or facets of jobs, such as nature of work or supervision.

Motivation: Is the reason for people’s action, desires and needs. Motivation is also one’s direction to behaviour, or what causes a person to want to repeat behaviour.

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