Organizational Factors In The Hotel Industry: The Growth Of The Hotel Industry

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Hotel industry has been considered as one of the key sector of the Indian economy, plays a significant role in the growth of the country and contributing 12.4 percent of the total employment to the country. This sector is one of the prosperous sectors, offers a variety of services to foreign tourists as well as increased tourist movement within the country and it has become one of the leading players in the global industry. It is amongst top 10 sectors to attract the highest foreign direct investment. According to department of industrial policy and promotion (DIPP) from April 2000-November 2014, this sector involved around US$7661.6 million of FDI. The market is expected to reach US$ 30 billion by 2015. Government of India increased spends working environment, Growth and possibility of growth; work itself, are as antecedents of employee turnover and job satisfaction (Ronra & Chaisawat, 2010). Lee (1988) used Mobley model which could be used effectively in hotel industry and shows different levels of turnover process from initially thinking about quitting as a result of job dissatisfaction to the intention to quit and ultimate employee turnover (Mobley, 1982; Robinson & Beesley, 2010; Tracey & Hinkin, 2008). However, only handful of research has been found in which some statistical relationship between the organizational factors and job outcomes of this sector has been worked out. Overall, the extant literature highlights a strong paucity of research on the antecedents and consequents of high attrition rate in hotel industry in India. It is considered one of the fastest global rising industries, contributing to more than one third of the service business (ILO, 2010 cited in Bharwani, 2012) and a significant impact on the Indian economy, it is important to highlight the organizational factors of hotel industry and its impact on job outcomes of Therefore, it is not highly surprising that organizational factors are often found to be a great indicator of job outcomes in the hotel sector. This has led researchers to emphasize the importance of reviewing the organizational factors that influence employee’s job satisfaction, organizational commitment with an organization (Lumley 2010), employee engagement and employee

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