International Hospitality and Tourism Student Journal 6 (1) 2012 3-13

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The battle of intrinsic and extrinsic reward systems, the next step for the hospitality industry. Can money always buy motivation? The case of Conrad Centennial Singapore.
Kam Kit Yip
HTMi, Hotel & Tourism Management Institute, Srenberg, 6174 Luzern, Switzerland!

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Abstract The development of reward management plays a very important role in every organisation, in general, money (Financial, tangible or extrinsic reward) is regarded as a common reward. However, wouldnt that become the next step of hospitality to only focus on in order to motivate and retain the employee? In keeping this theme, facing the high turnover rate within the industry, would then mean that extrinsic reward is no longer to become the only factor to keep the employee stay motivate and loyal the organisation. The bigger issue at hand would question the effectiveness and practical of managing reward system. The culmination of this research is to evaluate the effectiveness of intrinsic and extrinsic rewards factors that may influence employee to retain in the organisation. Moreover, this paper has critically assess the components of total reward which includes intrinsic and extrinsic rewards, in addition, the researcher also apply several motivation theories to examine employees individual motivation in terms of intrinsic and extrinsic rewards. Furthermore, this paper also ventures to measure the success of reward system within an organisation by using the performance management. The research case, Conrad Centennial Singapore, by facing the high turnover rate within the industry in Singapore, how the intrinsic and extrinsic rewards can be given to employee in Conrad Hotel? The author uses qualitative approach in form of in-depth interviews and focus group to synthesise with theories and frameworks to bring out the relationship between reward management and employees motivation which the author strongly believes that to truly motivate the employee; Conrad Hotel would be able to take a balance on allocating their resources for both intrinsic and extrinsic rewards.
Keywords: Intrinsic rewards; Extrinsic rewards; Motivation; Reward systems; Conrad Sentennial; Singapore

2013 International Hospitality Research Centre. All rights reserved.

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1. Introduction It reflects positively on Singapore tourism that there will be more than 40 hotels to provide more than 11,000 rooms by 2016 in Singapore (CBRE hotels, 2012). It shows that the hotel industry in Singapore is growing at a fast pace and would need more labour to support this industry. However, the hotel industry faces the challenge of high turnover rates in Singapore, which overall is 45% (Noe et al., 2008) and at a management level is 57.6% (Hemdi and Rahman, 2010). The question is how hotels can reward employees to motivate the core that the hotel management rely on so much. Conrad Centennial Singapore is a luxury hotel brand under Hilton Worldwide Group. Mr Heinrich Grafe (Spring Singapore, 2007), the general manager of the hotel believes that the best hotel strategy to maintain the competitive advantage is the investment in people, which in another way can be known as reward management. How they implement intrinsic and extrinsic reward management to fulfil their core value of the hotel? This research is worthwhile to find out

whether intrinsic or extrinsic reward is suitable for Conrad Centennial Singapore. If a hotel was personified by the human body, the various departments would be considered as the limbs to coordinate in order to achieve the goals of the hotel. The management would be the brain that constructs ideas and strategies to issue instructions. How about the employee? Employee is the most important asset of an organisation (Sharma, 2009; Price, 2011 and Stevens, 2013) and the blood of the organisation and therefore determines the value of the hotel and the position it stands (Birthch and Chiang, 2010 and Davidson et al, 2011). Employees are believed to stay motivated through a range of management techniques. One of the best aspects is use of reward management systems to not only motivate employees but also attract and retain them (Armstrong, 2002; Griffin and Moorhead, 2009 and Torrington et al., 2011). Rewards can be considered a wide range of compensations that vary from intrinsic and extrinsic (Manus and Graham, 2003 and Khan et al., 2013), which is more specifiable to disguise rewards classification in an organisation.These ideas bring forward the concept that

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rewards have deeper and diverse meaning to its simple name. Therefore, the author wants to critically analyse the implementation and effectiveness of rewards on the hotel industry based on the intrinsic and extrinsic reward segment. A considerable amount of previous research pertains to motivate employee through applying different reward system in an organisation (Torrington et al., 2008; Gungo, 2011) that while money is a common reward (Hussain, 2008 cited Aguinis et al., 2013). In addition, much of the discussion in previous research has focused on whether intrinsic nor extrinsic reward and how the organisation to motivate their employee through this technique (Redman and Wilkinson, 2009a and Tanford, 2013), in the result, issues encountered by investigating and comparing between intrinsic rewards and extrinsic reward and its effectiveness and properly for the organisation have received little attention from scholars. Last but not least, there is a lack of study in regards to Singaporean organisations and a specific hotel being investigated within intrinsic and extrinsic reward management (Choo, 2007 and Lan, 2011). Therefore, this study will focus on eliminating the gap of intrinsic and extrinsic rewarding by taking a deeper view on the context of Conrad Centennial Singapore. In todays current economic situation, a loss of profit has become a major issue when considering all the shareholders involved (Ameresekere, 2011). This is why the author has developed an interest in covering the human resource management aspect of business operations and look at the details regarding reward management. Having worked in Conrad Centennial Singapore, the author would like to investigate and evaluate intrinsic and extrinsic rewards can be given to employee in Conrad Hotel and would it be able to invest more resources on a more effective one or would it still require a balance of all rewards. The aim of this research is to evaluate the effectiveness of intrinsic and extrinsic rewards factors in the retention of employees in the case of Conrad Centennial Singapore. The objectives are: to investigate intrinsic reward drivers within the context of individual motivation at workforce level at Conrad Centennial Singapore; to investigate extrinsic reward drivers within the context of individual motivation at workforce level at Conrad Centennial Singapore; and to identify and evaluate individual decision criteria for loyalty or intension to leave in context to reward drivers identified. 2. Literature review 2.1. Reward Management: Theories and Definitions

Thomson, 2002 cited Armstrong, 2012). It can be classified as financial and non-financial (Rooy, 2010 and Birthch and Chiang, 2011), as well as monetary and non-monetary (Cheong et al., 2012 and Aguinis et al., 2013). However, one of the best known models of components of total reward is dividing it into intrinsic and extrinsic reward (Shields, 2004 and Armstrong and Brown, 2006). Table 1 highlights Shields (2004) point of view, extrinsic rewards can be referred as financial rewards and remuneration (e.g. basic pay and employee benefits), developmental rewards (e.g. career development and training) and social rewards (e.g. work environment and work life balance) which are came up from the job context. On the other hand, intrinsic reward (e.g. job challenge and task variety) is evolved from the job content.

Since the concept of total reward is being heavily used by organisations (Tippet and Kluvers, 2009 and Torrington, et al., 2011), numerous classifications have been concluded in order to implement an effective reward strategy in their enterprises which aims to attract, retain, motivate and satisfy employees (WorldatWork, 2004 cited in Armstrong, 2007,

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2.1.1. Total Reward

However, Armstrong (2010) argues that intrinsic reward is not only arising from the job itself, but also includes working environment, employees voice, learning and development and the personal achievement. Since Armstrong (2006 and 2010) emphasises on rewarding the employee through the training and skill development to upgrade themselves, which employee able to establish new knowledge and skills on their job, which results that making the job more challenge as well as increasing their job diversity, and it is about the job content. It is also supported by Steers and Porter (1991 cited in Lingard and Rowlinson, 2005), which states those elements are regarding to expression or feeling of the result after the performance on the job. On the other hand, Armstrong (2006) has enriched and extended the content of extrinsic reward of Shields (2004) theory which is employee recognition. Armstrong (2006 and 2012) points out that recognition can be referred to extrinsic non-financial reward, which is came from colleagues and management and team leaders positive feedback, praise and appreciation due to their outstanding performance, for instance, providing recognition by giving awards, publishing their achievement in public or company and offering special occasion in order to recognise their performance, therefore, this kind of tangible and intangible benefit makes them feel they are deserved as well as enhances employee engagement. However, it also been debated by Thomas (2002), he states that recognition also can be stated as intrinsic reward, as it comes to employee directly

Figure 1: Components of total reward system (Shields, 2004)

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from the work they done, for example, they get satisfactions, pride and sense from workmanship or helping a customer. Having looked at to different definitions of the total reward and its components, this shows that total reward has its deeper and complex meaning for both intrinsic and extrinsic rewards. As they are not only influence the management sites but also have a long-term and deeper impact on the employees. Armstrong and Brown (2006) believed to identify the element of the total rewards is very important. However it is not enough to implement the reward policies base on those essentials, it should be strongly linked with other motivation and motivation process theories to truly understand employees needs and wants.

2.1.2. Employees Motivation Once the employees are highly motivated, it can be consider as the intangible asset in any organization, as they are productivity, responsibilities and enthusiastic on their job (Silva, 2009). According to Gnoth (1997 cited Crouch, 2004), motivation is a component to fulfil peoples needs and wants. Thus, there is being a trend to investigate more about the employees motivation to truly understand their motivators. There are two classifications of motivation which are intrinsic and extrinsic (Frey and Osterloh, 2002 and Armstrong, 2007). Extrinsic motivation can be defined when the cause of the employee motivation is external to them, it can be people, reward, criticism and punishment (Sansone and Harackiewicz, 2000; Housldswoth and Irasinghe, 2006 and Armstrong, 2007). On the other hand, intrinsic motivation is regarded to personal interest which refers to the internal factor drive employees behaviours and havea heavy share on selfdevelopment and self-actualization, such as personal achievement and interests (Carsrud and Brnnback, 2009: Armstrong, 2007; Silva, 2009 and Sansone and Harackiewicz, 2000). However, based on the previous authors have clearly defined the employee extrinsic motivation is came from external driven and intrinsic is came from internal factors, Frey and Osterloh (2002, p.9) claim that interchanging between intrinsic and extrinsic motivation possibly happen under certain circumstances and this phenomenon called The Crowding-Out Effect". Talukdar (2012) has further explain this situation that employee carried out an activity from their intrinsic motivation; but it can be damaged or corrupted by extrinsic intervention due to the reason of social, economic and the length of time. It shows that there is a complex connection between intrinsic and extrinsic motivation, which is not isolated and affecting each other. Besides, to understand the ways to keep employee stay motivated through reward management, there are several experts explain the importance to recognize the connection between employee motivations and reward programs. One of the approaches is Herzbergs two factor-theory (Herzberg, 1966), which is usually be using for criticizing Maslows hierarchy of needs; as its theory did not elaborate the relationship between needs and behaviour and base on limited amount of interviewees estimations (Wahba and Bridwell, 1976 and Armstrong, 2010). However, from two

factor-theorys perspective, it has more detail about the link between employees motivation and their workplace. Moreover, he identified two factors can be seen in the figure 2 that included Motivational Factors and Hygiene Factors (Herzberg, 1966). Hygiene factors is regarding to measure how satisfied employees feel (Slocum et al., 2008); for instance, salary, companies policies and working condition (Beardwell and Claydon, 2007; Nelson and Quick, 2012). Additionally, motivational factors are the context of the organisation that make their employee more positive toward the work (Slocum et al., 2008 and Koontz and Weihrich, 2006); it can be seen as achievement, chance to growth and responsibility toward employees work (Beardwell and Claydon, 2007); and those condition is strongly connected to job content (Koontz and Weihrich, 2006). What is more, in Herzbergs concept, Hygiene factors actually is a satisfiers which only can influence employee from dissatisfaction to not dissatisfied and will not motivate them to make use of their effort. Besides, the only component can drive employee to be motivated is Motivational factor (Beardwell and Claydon, 2007; Armstrong, 2007).

From Herzbergs hygiene and motivational factors, there are similarities with intrinsic and extrinsic motivation; both of them are separated the motivation as two segments with similar explanation. Furthermore, as Armstrong (2012) mentions the link between reward management and employees motivation is important. But actually it is very clear to see that the meaning of intrinsic reward from Shields (2004) and motivational factor is alike and extrinsic reward (ibid) is similar to hygiene factor. Thus, in mid of 90s, people are started to focus and investigate more employees motivators, which types of reward can motivate employee in a correct direction and extend to become intrinsic and extrinsic reward. However, Authors like Vroom (1964 cited House and Wabba, 1974) strained the use of motivational theories, such as Maslows Hierarchy of needs and Herzbergs Two-factor model, to motivate the staff, since Guest (1997) and Armstrong (2006) generalise that Vrooms Expectancy theory is more useful to the organisation comparing to Herzbergs

Figure 2: Herzberg's Two-Factor Theory (Herzberg, 1966)

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Two-factor, due to it provides more realistic support and direction to the organisation on motivation practice. One of the well-known process theories in Figure 2 shows Vrooms Expectancy theory (1964 cited Chiang and Jang, 2008), it consists of expectancy which can be seem as the probability that action or effort will lead to an outcome; another element is instrumentality which is the belief that once things are done and it will lead to another, and the last one is valency which stands for value which can be referred to intrinsic and extrinsic rewards (Mottaz, 1985). As the expectation can be based on employees past experience, which results they probably know how to performance their job in order to get the rewards as well as fulfil their personal goal, and this process will be their perception to motivate them to work. But, in certain circumstances, motivation would be declined due to the employee do not familiar with the new environment or lack of experience and they are not able to predict the outcome correctly (ibid). However, this model has been criticised by Miller and Walker (2009), they states there are some limitations and external factors that may affect the performance or increase the difficulty to predict the way they function; for examples, leadership behaviour, individual characteristics, and nature of the task and practices of the organisation. Expectancy theory is emphasis on peoples motivation processes in psychological perspective which is different from the Herzbergs two factors (Armstrong, 2012). And it also shows that there are different theories regarding to motivation and there are based on different viewpoint and it would be challenging for the manager to take consideration and balance between different motivation models and its positive and negative outcome in order to motivate the employee in the most effective way.

Chiang and Jang, 2008) and Boxall and Purcell (2003) that enhancing staff performance is one of the key objectives of reward systems. Therefore, by managing and evaluating the performance which not only can identify the employees knowledge and skill, but also can recognize the function and improvement of reward management. In addition, this introduces the concept of measuring performance to support this intricate process; the process of measuring is introduced by Williams (2006) in the form of a performance management cycle model, and it shows the researcher that reward management can be augmented or enhanced through the implementation of performance management system. This model portrays four different stages that form a cycle that has been rooted by corporate strategy. Figure 3 shows the strategy conveys information through the company mission and objectives that directly affects the respective four stages which includes departmental purpose analysis, individual objective setting, performance evaluation and PRP (performance related pay) and development.

Figure 3: Performance Management Cycles (Williams, 2002) The first stage of departmental purpose analysis refers to the evaluation of a departments needs in regards to developing individuals and employees. This is emphasised by Walters (1995) who states that performance management relates to the leading of employees to achieve optimal performance in regards to the organisation and in the case of this model, the department. The second stage, having identified the needs of a department is to select the individuals and setting target objectives for the process (Cardy and Leonard, 2011). Thirdly, performance evaluation emphasises this specific section of the report as it indicates the importance of a tool for measuring the results of human resource management techniques such as reward management (Houldsworth and Jirasinghe, 2006). Finally the last stage, PRP and development relate to the improvement of the overall system or process implemented, meanwhile, it also can achieve employees objectives (Williams, 2002). However, the fourth stage of Williams model has been criticised by Wood (1999), he states in his study that it is too narrative for a performance management process only focus

The best way to gauge the outcome of reward management is naturally rely on the resultant of performance by employees post-intrinsic and extrinsic rewarding (Epstein and Manzoni, 2008), it also supported by Vroom (1964 cited

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Figure 3: Vrooms Expectancy Theory (Guest, 1992)

2.1.3. Performance Management Cycles

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on PRP, and it should be the whole reward system which includes intrinsic and extrinsic reward. This shows the researcher that reward management can be augmented or enhanced through the implementation of performance management system. Mabey et al. (2005) stated in their studies that there is no exact feature of the performance management models, but there is no deny that the measurement of performance is also a tool to indicate ways of improvement for a system like reward system (Armstrong, 2007 and Cardy and Leonard, 2011) and it helps the organisation to build up an effective reward system (Dessinger and Moseley, 2009).

Organisations among hospitality industry are trend to apply more reward management for motivating the staff to achieve their enterprises goals. In this section, the author will review the existing research among the reward systems elements, interaction between reward and motivation and the effectiveness of reward system. There are several approaches for building up different aspect of reward systems elements, in order to strongly link to other HR strategic and build a healthier employee engagement. Commonly, the component of reward system includes two aspects: financial and nonfinancial; and the concept has been using by Law and Tams studies (2006) and it illustrates the financial reward consist of performance pay and the non-financial rewards can be classified as recognition, responsibility and personal growth. In addition, as the research is done for investigate the Hong Kong hotels, and it found out financial reward is more important for employee in terms of primary motivation. Actually this notion is applied in different types of studies, for example, in Munir et al.s studies (2011); they applied the financial and non-financial reward to set up a reward strategic to motivate their staff in Garuda Indonesian airline, and from Bishops studies (2005) also implement the reward plans through the financial and non-financial aspect in Centrica UK. In another study from Crino and White (1982) shows the component of reward system are intrinsic and extrinsic, they utilize this concept to measure the employee performance through the feedback section. Moreover, Wiley (1997) used this model as her base and develop her surveys to look into the employee motivation, and he found out that employee who have working for the organisation over 10 years and they prefer intrinsic rewards rather than extrinsic to keep them stay motivate.

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2.2. Reviewing the Empirical Studies 2.2.1. Component of Reward System

that by using the performance management cycle that highlights a need in New Zealand to evaluate the results of such system on respective individuals having a process through management techniques such as reward management. Furthermore, reward management can also be seen as a catalyst to motivation due to the intrinsic nature of the aforementioned technique that shows in Reiss study (2012). Performance management being the aftermath of reward management almost acts as a tool for measuring effectiveness. The reward system can also draw from motivation in that, reward systems can be seen as incentives for motivating employees. Moreover, from Lin (2007) and Cho and Perrys (2011) articles have investigated the relationship is evident when considering that motivation tends to have goals or objectives. Employees work for not only rewards but lack of rewards (punishment). This being the case, hence, employees work in the knowledge and mindset that there is a reward to be achieved at the end. This shows motivation and reward management can either spark one or the other.

It is a big challenge to the hotel industry to attract and retain talent in their business in Singapore, due to the higher turnover rate. Conrad Centennial Singapore is one of the 5 star luxury hotel in Singapore, facing the trend of lacking of employee, how they implement the technique to solve this problem? Is it salary still the most important element to keep talent people? There is some evident shows Conrad Centennial Singapore is no longer using extrinsic reward (e.g. basic salary) to attract and motivate their staff, encouraging and providing different sources like Hilton University (Hilton Worldwide, 2012) which is a online school that for their staff to develop different types of skill and those courses are available for different department, so employee can develop and learn more knowledge from different hotel departments skill (Conrad Centennial Singapore, 2012). Moreover, organising different activities for the staff to make their work and life balance, such as football match, marathons and so on. It is obviously Conrad Centennial Singapore is applying more intrinsic rewards for their staff in order to meet their needs and expectation (ibid).

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2.3. Research Company Background: Conrad Centennial Singapore

3. Methodology 3.1.

It is evident to Kanungo and Hartwicks (1987) study that there is a clear link between a successful reward system and the motivation of employees in the hotel industry work place. Moreover, from Haynes and Fryers research (1999) shows

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2.2.2 Linkage Between the Reward System and Motivation

There are two research methods which are quantitative and qualitative (Tashakkori and Teddlie, 2003) and it is very important to choose a suitable research method, as it helps the researcher carry out the result with creating good design and catering for the possible constraints (Easterby-Smith et al., 2008). Due to the intricacy of objectives being assessed and the necessity of another true intense understanding of the phenomenon of intrinsic and extrinsic reward, the author chooses to use qualitative approach rather than quantitative approach. As a matter of fact, qualitative research is mainly

Approach

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concerned with the deeper meaning and is more sympathetic to the research context rather than quantitative research which emphases on numerical measurements (Keegan, 2009). Moreover, the researchers option of research methodology is strongly substantiated by Silverman (2006) when he clarifies that the qualitative method is more relevant in terms of studying the populations outlooks, cognitions and prognostication. At the same time, there are also several authors who agree with Silverman and define qualitative approach as naturalistic form of enquiry since it searches for genuine understanding of the social issues within the context itself (Bryman, 2008; Marsall and Rossman, 2006; Newby, 2010; Saunders et al., 2009). On one hand, the researcher is convinced by the fact that qualitative approach can be linked to emotionalism, which indicates the process mankind is being spotted and patently, this will be bear in mind attentively during the research. In addition, in order to gain an in- depth comprehension about the rewarding practices in Conrad Centennial Singapore, it is a theoretical to carry out qualitative approach since it is amenable in plotting the findings and also, it gives the participants the integrity to convey their point of view and understanding, which is more effective to let the data speak and disclose the truth (Vanderstoep and Johnston, 2009). As stated by Marshall and Rossman (2006), the qualitative method is an ideal for any kind of research that has not been ascertained clearly in literature. In this sense, this is fitting in this case as most of the findings in literature are based on total reward and there is still limited number of studies looking at intrinsic and extrinsic rewards. With the purpose of getting the response for the three objectives, as is to understand, in depth, the view point of employee motivation in term of reward system for Conrad Centennial Singapore as well as identifying and evaluating the norms of employee decision for loyalty or intension to leave within the context to reward drivers, therefore, the qualitative research is more appropriated in this case (Marshall and Rossman, 2006). The outcomes of qualitative research will be composed and evaluated responsively with the participants from hotels employees from management and front-line who involved in reward system so as to give a more critical view of the roots and results of process in dealing with reward system. Generally, by using qualitative approach, the researcher will be probable to response all objectives that she identified in this research, which guilds to better understanding to the topic.

The design of sampling is to pick one or more samples from individual or a group of people who took in this research (Saunders et al., 2009). Moreover, Ritchie and Lewis (2003) had Interpreted qualitative research have a narrower range than quantitative research, in the consequence, there is possibly less support on the credibility of the research, which supported by Klenke (2008) and he points out that the number of the sample is not the key emphasis in qualitative approach.

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3.2.

Sampling and Data Collection

The populations counted in this study are line employees, HR manager and director from Conrad Centennial Singapore. Within this hotel, purposive non-random sampling had been adopted, due to enhance the accuracy and reliability of the date by selecting certain groups of participant (Silverman, 2011), therefore, it will be covered in the array of all of the respondents who are corresponding to the implementation of rewarding system, notably the human capital personnel. Most of the HR participants in Conrad Centennial Singapore possess over 10-20 years of experiences with top-level position. The dimensions of the sample will be dictated by the margin of 5% oversight by the author (Saunders at al., 2009). Johnson and Christensen (2004) identify three different kinds of interviewing techniques within the range of qualitative research including informal conversational interview, interview guide approach (semi- structured interview) and standardized open-ended interview. As to support the above authors statement on data collection with respect to qualitative approach, Saunders et al. (2003, p.247) disclose that interviews can be conducted under both styles one-to-one or group basis. To collect crucial data for the researchers study, the author will carry out an in-depth interview with the HR managers and a focus group with the employees of the hotel property to discuss about reward system and its effectiveness. According to Kahn and Cannell (1957) and Marshall and Rossman (2006), an in-depth interview is a conversation between interviewer and interviewee based on researchers purposes, therefore, the researchers have to find out the key aspects in their studies in order to get the most relevant information or data. Moreover, by using the in-depth interview the participants have opportunity to speak freely regarding their knowledge and experience during the interview (ibid). Moreover, the researcher has concluded another qualitative method, focus group, which is not only because it is popular in social science domains, but also helps to diminish the interviewees bias and gain more reliable data (ibid). The key purpose of this academic work is to identify the participants individual decision criteria for loyalty or intension to leave in context of reward system in Conrad Hotel. Approximately 8 to 10 purposively selected employees from different hotel departments, such as Housekeeping, Front Office, F&B, Sales and Marketing and Finance department will attend the focus group. The research have considered some of the employee have very tired schedule of their work, so the length of the group interview is depending on their time permission the researcher, but the researcher wish it approximately takes at least three hours. 3.3.

Bryman (2012) states grounded theory, narrative and discourse analysis are the common way to analyse the qualitative data. According to Miller (2000 cited Bryman and Bell, 2007), narrative analysis can be referred to ask participants to describe their stories with purpose which leads them to response the answers that the researcher expected or

Data Analysis

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desired; and the researcher believe adding returning observation or asking further questions (Huston, 2012). On the other hand, according to Glaser and Strauss (1967), grounded theory is a tool used in generating and evaluating the theories from the data accumulated and further investigated in a systematic or methodical way. Since the author is using qualitative approach in this research, whereas this approach is emphasised on accurate data collection and the way of those theories resulted from the data collected along the research. so the researcher considers by using grounded theory to analyse the data which helps the research to explore and develop the existing or new theories in different angles. During the data analysis process, constant comparison is necessary which means the researcher has to identify the similarity and the differences between the existing researches and the notions that generated from the data (Litchman, 2009). According to Atkinson et al. (2003), data collection, note taking, memos and coding will be demonstrated in grounded theory at different stages. The researcher attempt to focus on coding, and due to the research will conducted by in-depth interview and focus group interview, so each of them have their own theme an coding to construe the data straight, so it is more convenient for the researcher to divide the raw information accordingly into different categories and code them. However, unfitting coding adoption may have negative impact on the outcome of the research (Richards, 2009). 3.4.

complicated as the issues of confusing coding words can bring about solemn threatening remarks to the dependability of coding executions. Hence, the author will interrogate other fellow research students to evaluate the data so as to secure the reliability of inter-coder practices. The transferability of a research can be perceived as the hugeness to which the researchers data analysis can be transported to other background setting issued from other authors opinion (Lincoln and Guba, 1989; Trochim, 2006). In this case, transferability is illuminated through the comparability between the authors explanations with other case studies.

Lincoln and Guba (1985, 296) mention the main objective of credibility to demonstrate that the inquiry was conducted in such a manner as to ensure that the subject was accurately identified and described. Being strongly supported Lincoln and Gubas declaration, Henderson (1991) mentions that credibility in qualitative research can be considered as personal and interpersonal skills that tends to form the trust with the candidates and eliminate the bias amongst the interviewers and interviewees. To maintain the credibility of the paper, a commitment of retaining anonymity and privacy should me prolonged in order to strengthen a firm discussion amongst the participants and questioners. Aside from that, there will be a persistent observation throughout the interview process. Trochim (2006) examines that each qualitative research has a particular line of thinking and therefore, conformability responds to the extent to which the findings can be confirmed by other sources. In this context, once the researcher has collected sufficient data for her topic, she will compare her verdicts with the secondary research in literature.

Credibility and Conformability

Bryman and Bell (2007) mention that dependability is similar to the conventional quantitative view of reliability. The dependability of this paper can be composed of clear coding method and inter- coder validation. However, applying coding procedure is not simple and indeed, utterly

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3.5.

Dependability and Transferability

Being able to acknowledge the ethical matters ensure that there are no adverse issues such as intellectual and social hindrances that place the influence on the respondents (Polinsky and Waller, 2001). Undoubtedly, throughout the processes of data collection and findings analysis, the author will face a number of ethical issues between the interviewee and interviewers (Bryman and Bell 2007), such as lack of agreement, the invasion of confidential data and the action of deceiving which means the interviewee want to maintain their privacy and not reveal their true identity (Klenke, 2008) . In the past few decades, ethical issue has raised people awareness which causes a lot of ethical regulations and committee are being found in several areas. As normal in ethics, the pressure comes from the blend of formulated general rules, established organisations of control and criteria in the daily field practices and research procedures (Klenke, 2008 and Flick, 2009). Although there is lack of specific and clear solutions for ethical issues, and the authors attempt to solve the problems step by step during the process of the research (Flick, 2009). In order to lessen the ethical issues, first of all, the author will not pressure the voluntary participants to assemble the hotels privately owned document and avoid asking about their identity. As the aim of the study is evaluate the effectiveness of intrinsic and extrinsic rewards factors in the retention of employees; due to the high impact on the operation and management of Conrad Centennial Singapore, employee might not hesitate to attend this research, because they might afraid of answering those sensible question that could damage the hotels brand equity or get compensations and blames from the hotel. Therefore, anonymity is extreme important in this case. Moreover confidentiality has to be kept, as there might appear confidential information. Due to the Conrad Hotel belonging to a private company, namely Hilton Worldwide, which means a lot of confidential information cannot be published and it can be the hotels proprietary content to remain competitive in the industry. Hence a confidential agreement will be signed by both sides to certify no data will be disclosed without both sides agreement.

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3.6.

Ethical Issues

This study contributes the important, accurate and relevant data regarding to the employees motivations and

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3.8.

Limitation

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reward system. However, Veal (2006) and Bryman and Bell (2007) insist that carrying out primary research is intricate and the authors might encounter lots of obstacles, encompassing of low level of support from the participants as well as the bar of geography and time. As a result, the Conrad Centennial Singapores management team might not support the author and not agree for her to carry through the interviewing process. Also, most of the findings at this level still based on the secondary research and the researcher has not got a chance to execute primary research. Additionally, the author would like to record the interviews which help the author to diminish time consuming and wrong data being taken, on the other hand, Saunders et al. (2009) define that difficulties may happen, in this case, the participants may afraid and not utter freely which reduce the reliability of the data. Last but not least, there are some limitations on the nature of qualitative research, for examples, the the number of the participants is less consequent comparing to quantitative study, in the result the restriction of generalizability and systematic comparisons (Huston, 2012). 4. Discussion 4.1. To investigate intrinsic reward drivers within the context of individual motivation at workforce level at Conrad Centennial Singapore. The author has established the grounds on the impact that a reward management system can have on an organisation, the first objective looks at this particular impact from an individual level. Furthermore it is reviewed at a work force level. The author began the literature review by indicating the types of motivation employees have through various academic support. From Armstrong (2007)s intrinsic and extrinsic motivation to Herzbergs (1966) hygiene and motivational factors immediately shows that there is a deeper sense of reward that drives employees which is not only money or monetary reward. The author would like to discuss the idea that intrinsic rewards would be very evident in Conrad Centennial Singapore because Shields (2004) the components of total reward model shows that job challenge, responsibility, autonomy and task variety are tools that hotel managers are indeed considering on applying. This being said, it is not a coincidence that hotel managers would portray an element of providing employees the chance to further their job responsibilities through new tasks and assignments. Also, there is a tendency for hotel managers to provide employees opportunities to work in different departments, which sparks the element of intrinsic rewards such as task variety. This not only provides hotels with a more skilled labor force but also a more complete and competitive team. This being the case, employees who do use these benefits to their advantage would then be able to reap the rewards of the intrinsic nature. However, the author feels a need to understand further the impacts or repercussions of employees who are more resistant to these types of intrinsic rewards. This discussion

has really highlighted the sense that intrinsic rewards are indeed derived from the job content as mentioned earlier in this report. 4.2. To investigate extrinsic reward drivers within the context of individual motivation at workforce level at Conrad Centennial Singapore. The next objective looks then at the flipside of the reward system in the extrinsic rewards which Shields (2004), Steers and Porter (1991 cited in Lingard and Rowlinson, 2005) and Armstrong (2006) were initially portrayed as rewards of a financial, environmental, social nature. This while seemingly more practical, also suggests a sense of applicability in that not all employees are genuinely interested in this reward benefits. The author speculates that in her earlier research, financial rewards such as an increase in pay or performance bonuses are very relevant in Conrad Centennial. This could be due to the generalization that hotel employees tend to be more money-driven. The author feels that the first of the three extrinsic rewards is the attracting force that lures employees to the organization. Meanwhile, the following two, developmental and social, are extrinsic rewards that develop during the course of employment. Developmental rewards looks at the progression and improvements that an employee can achieve while working such as promotion and learning which tends to create a lot of movement within the hotel industry. It might even be suggested that the high turnover in the industry might be directly a catalyst of employees getting promoted quicker by joining new hotels. The value of learning is also a reward that can be seen as limited which makes it more valuable. Finally the importance of a social reward when considering extrinsic rewards looks at the overall structure of Conrad hotel and how employees benefit from the hierarchy system. This in conjunction with potential the support of performance factors such as work life balance flexibility provides employees the chance to improve themselves by being given the best possible work environment they could have. These three extrinsic reward categories highlights to the author that when implemented together with intrinsic rewarding gives employees the chance to perform at an optimum level. 4.3. To identify and evaluate individual decision criteria for loyalty or intension to leave in context to reward drivers identified. The third objective concludes and evaluates the overall effectiveness of reward drivers on the loyalty of employees. This can be simplified in to understanding how intrinsic and extrinsic rewards affect an employees overall happiness or satisfaction at their respective company. As highlighted earlier in Williams (2002) performance management cycle, the importance of a corporate strategy that sends out clear communication of mission and objectives is the first step in the cycle of optimizing the effect of reward managements. A departmental analysis highlights the costs of reward management and that it should not only be used but be used

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International Hospitality and Tourism Student Journal 6 (1) 2012 3-13

sparingly due to the nature of its costs and length of implementation. Individual objective setting puts employees in a more directed path so as to regulate their growth. This highlights that the third objective is taken very seriously from an organizational point of view. Those hotels do actually try to retain their employees. The performance evaluation factor and development questions the employees ability to reap the most out of the process. This alludes to the author that reward drivers do play a direct link to loyalty of employees. 5. Conclusion and recommendations To sum up, intrinsic and extrinsic rewards play a very important role among the organisation, especially for hospitality industry; as the turnover rate in hotel industry is still very high. By understanding the theories about reward management, employee motivation and performance measurement from Shields, Armstrong, Herzberg, Maslow and William, there is an extremely strong connection between each other, this not only helps the company to achieve their goals and targets but also improve their current performance to be better. The author feels that reward management has proven to be a good way to motivate employees but only if the company or organisation involved has a fair and comprehensive structure to ensure the process is smooth. This is because reward management has proven to be a very intricate topic as highlighted in the literature review, and this will continue to develop as managers begin to face the challenge of high turnover in this industry. This research paper presents a chance to investigate deeper about reward management in different directions in the hotel industry, such as Conrad Centennial Singapore, as a leading hotel in the world, having employee shortage in the industry, how they implement intrinsic and extrinsic reward management to fulfil their core value of the hotel? Future researcher can take this research to have a further analysis to do the comparison among the hotel which had implemented the total reward and only apply either intrinsic or extrinsic reward. As the primary research is regarding the intrinsic and extrinsic reward are the factors to motivate the staff and also highlight the effectiveness of reward management by using the performance measurement. The author has also synthesised in her research that regardless of intrinsic or extrinsic rewards, there will always be a sense of injustice or challenge when implementing reward management as there is an element of biasness or prejudice and that employees may not be treated equally. This is even more worrying when considering that high turnovers might lead to reward management being misused. Another conclusion that the researcher has arrived at is the importance of having a leader figure in implementing the process. The strength of a leader as highlighted in previous studies is the ability to know her employees and recognising personality and preferences so as to properly provide the right type of rewards that will please them. This is important when considering that leaders play a big role in the costly reward management process. Regardless of whether it is

intrinsic or extrinsic, reward management will always involve direct and indirect money or finances being spent hence making it an issue that needs to be taken seriously in a profiting organisation. Finally the author has discovered the importance of balancing intrinsic and extrinsic rewarding so as to achieve the most efficient form of satisfaction and motivation that employees have while working. It is not true that one is better than the other and the author also acknowledges that employees perceptions might also change in the long term therefore leading to different needs of rewards. The author will begin her recommendations by expressing her delight that reward management as mentioned in the conclusion is evolving. This being the case, the author feels that future researchers should further this topic of research by actively conducting primary research on employees to gain a better understanding of the trends and current issues in regards to reward management. Furthermore, the author acknowledges that reward management whilst being broad, needs to be broken down in to categories of nationality as it would be clear that different cultures would have different expectations when it comes to rewarding. Also from an academic perspective, the author would urge future researchers to observe if there is a difference in their expectations with the direct correlation of time worked for a particular company. In elaborating this point, the author wants to know if an employee were to work longer at an organisation, would he or she want rewards of intrinsic value at the beginning and also at the end of the career or would it be more mixed in that employees slowly develop their needs and expectations when it comes to motivation. From a hospitality point of view, the employee would encourage hotel managers or employees to create more specified systems when it comes to reward management. As opposed to the regular giveaways, the concept of reward management needs to be more theoretical and that employees should have it more in their day to day operations. This means that leaders as mentioned before in the conclusion need to be promoting the idea of getting rewards more regularly based on employee performance. This would perhaps not only highlight the value of reward management but also ensure that an effective tool is being used. References
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