Impact of organizational culture on employee performance in hotel industry - A study of hotels in Ho Chi Minh city
Abstract
Vietnam currently is at the top 12/181 countries has long-term growth in tourism.
According to World Travel and Tourism Council (WTTC), the direct contribution of
tourism to the GDP of Vietnam in 2010 was 73,800 billion (equivalent to $ 4 billion
USD), accounting for 3.9% of GDP. It reflects the significant role of tourism in
Vietnam industry in which hotel industry has contributed to the success of tourism. It
is the reason why hotel industry was chosen to be the subject in this study.
In the development of tourism, also hotel industry, Vietnam market has become more
and more competitive, the question is how the hotels can improve the performance of
business to attract more customer, also have a consistent place in the market. For a
long time, human resource is perceived as a key factor contributes to the success of
most of organizations. In addition, along with the development of hotels is the growth
of organizational culture which is considered as significant part in hotel industry over
the last few years and has been widely mentioned. The question is that whether the
establishment of organizational culture has any impact on performance of an
organization, especially on employee performance. Hence, this thesis will investigate
the influence of organizational culture on employee performance in not only an
organization but the whole hotel industry in Ho Chi Minh city.
At first, the term organizational culture will be defined and measured in details. In
order to do that, two important models of organizational culture will be mentioned,
which are Schein (1985) “three levels of culture” and Denison (1995) “organizational
culture model”. In this research, Organizational Culture model of Denison (1995) will
be applied to test the impact of organizational culture on employee performance. In
addition, the employee performance measurements will be presented. In order to
conduct the research, both qualitative and quantitative research method will be
applied. In qualitative research, interviews will be conducted and the guests will be
two professionals in organizational culture. In quantitative research, a sample of 254
employees work in six different big hotels in Ho Chi Minh city will be used to
analyze the results. The results showed that Mission, Adaptability, Involvement andviii
Consistency in Denison model had positive impact on improving the performance of
employees.
As the results, it is recommended for the hotels to continue concentrate on four main
traits of culture and keep them in balance in order to improve employee performance,
also the success of a business.