View/Open

1.1 Background to the Study
CHAPTER 1 - INTRODUCTION
Managing a workforce effectively is important in the hospitality industry where a
competitive strategy is required to gain better market position (Nicolaides, 2008). This
depends on greater commitment from both employees and managers of the
organisation because committed employees have been found to create a “lasting effect”
on customer perceptions of service quality (e.g. Bitner, Booms, & Tetreault, 1990; De
Matos, Henrique, & Rossi, 2007). However, hospitality organisations have been found
to have high employee attrition rates (e.g. Bloome, van Rheede, & Tromp, 2010;
Bloome, 2006; Williamson, Harris, & Parker, 2008). One of the negative aspects of
employee turnover is the additional cost to the organisation. For example, Hinkin and
Tracey (2000) suggest that when an employee quits, 70 % of the employee’s yearly
salary would be invested in recruiting and training a new employee.
The employee-supervisor relationship is one of the predominant influences on turnover
in the hospitality industry (e.g. Ansari, Hung, & Aafaqi, 2008; Bauer, Erdogan, Liden,
& Wayne, 2006). Better employee-supervisor relationships result in more committed
and motivated employees thereby reducing employee attrition. For example, in a study
of working conditions in hospitality, Poulston (2009) found that the supervisor’s
relationship with employees was a major influence on employees’ job motivation.
Therefore, it is particularly important to understand the supervisor-subordinate
relationship in the hospitality industry.
1