Fringe benefits and organisational commitment: The case of Langkawi hotels

Ahmad, Rozila and Scott, Noel (2015) Fringe benefits and organisational commitment: The case of Langkawi hotels. Tourism Review, 70 1: 13-23. doi:10.1108/TR-11-2013-0065


Author Ahmad, Rozila
Scott, Noel
Title Fringe benefits and organisational commitment: The case of Langkawi hotels
Journal name Tourism Review   Check publisher's open access policy
ISSN 1759-8451
1660-5373
Publication date 2015-04-20
Year available 2015
Sub-type Article (original research)
DOI 10.1108/TR-11-2013-0065
Volume 70
Issue 1
Start page 13
End page 23
Total pages 11
Place of publication Bingley, United Kingdom
Publisher Emerald Group Publishing
Collection year 2016
Language eng
Formatted abstract
Purpose
– This paper aims to examine the relationship between fringe benefits (FB) provided to hotel managerial employees as part of their compensation and managers’ organisational commitment (OC).

Design/methodology/approach
– This empirical study collected quantitative data from 104 managers from three-, four- and five-star hotels in Langkawi Island, Malaysia. Data collected included types of FBs received and three components of OC – affective commitment (AC), normative commitment (NC) and continuous commitment (CC).

Findings
– Significant relationships were found between types of FBs and component of OC. Relocation allowances, sports and social facilities, birthday celebrations and free laundry services have a greater correlation with AC compared to other types of FB. Most types of FBs have stronger correlation with AC compared to NC and CC.

Research limitations/implications
– The findings of this study are limited to hotels in Langkawi Island, Malaysia and to three-, four- and five-star hotels.

Practical implications
– Practitioners can use the information provided in this study to develop effective and competitive FB packages.

Social implications
– It is of utmost importance to ensure the well-being of all employees (managers and non-managers) in the provision of FB packages.

Originality/value
– Managers’ FBs are an important component of their salary, but there have been few studies of the effectiveness of FBs on hotel performance. This paper provides empirical evidence for the positive effect of FB on OC.
Keyword Malaysia
Organisational commitment
Human resource management
Compensation
Hotel
Fringe benefits
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
UQ Business School Publications
 
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