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Keywords:
High-performance work practices
Hotel employees
Performance outcomes
Romania
Work engagement
a b s t r a c t
This study proposes and tests a research model that investigates whether work engagement functions
as a mediator of the effects of high-performance work practices (HPWPs) on job performance and extrarole customer service. These relationships were assessed through LISREL 8.30 using structural equation
modeling (SEM). Data were obtained from full-time frontline hotel employees and their managers in the
Poiana Brasov region in Romania. The results suggest that work engagement acts as a full mediator of the
effects of HPWPs on job performance and extra-role customer service. Specically, HPWPs, as manifested
by frontline employees appraisal of training, empowerment, and rewards, enhance work engagement.
Such HPWPs in turn trigger job performance and extra-role customer service. Implications of the results
are discussed and avenues for future research are offered.
2013 Elsevier Ltd. All rights reserved.
1. Introduction
The recognition that frontline employees play a pivotal role in
delivery of service quality, successful service recovery, and retention of satised and loyal customers in the hospitality industry
is prevalent among researchers and practitioners (e.g., Chi and
Gursoy, 2009; Chiang and Birtch, 2008; Guchait et al., 2012). Therefore, retention of frontline employees who can have high quality
performance in the workplace is as important to business success as customer loyalty and protability. The presence of HPWPs
sends powerful signals to employees that the organization pays
utmost attention to human capital for improving service capacity
and productivity (Tang and Tang, 2012). Internal career/promotion
opportunities, teamwork, employment security, stafng selectivity, work-family balance, training, empowerment, and rewards are
among the indicators of HPWPs (e.g., Cho et al., 2006; Kusluvan
et al., 2010; Murphy and Murrmann, 2009; Tang and Tang, 2012).
Frontline employees working in environments where there are a
number of HPWPs may have high levels of energy and feel dedicated and may be happily immersed in their work. Retention of
engaged employees is critical, because they are likely to display
high quality performance in the workplace and fulll their formal
role requirements for business success (cf. Bakker and Demerouti,
2008; DiPietro and Pizam, 2008; Sltten and Mehmetoglu, 2011).
As a motivational construct, work engagement refers to a positive, fullling, work-related state of mind that is characterized by
Tel.: +90 392 630 1116; fax: +90 392 365 1584.
E-mail address: osman.karatepe@emu.edu.tr
0278-4319/$ see front matter 2013 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.ijhm.2012.05.003
1.1. Purpose
Using SET as the theoretical framework, this study proposes and
tests a research model that investigates whether work engagement
mediates the effects of HPWPs on job performance and extra-role
customer service. Training, empowerment, and rewards are the
indicators of HPWPs examined in the present study. Data gathered from the hotel industry in Romania were used to assess these
relationships.
This study makes several contributions to the existing knowledge base in the following ways. First, although there are various
indicators of HPWPs, training, empowerment, and rewards are considered as the indicators of HPWPs predicting work engagement.
In other words, HPWPs are manifested through managements
simultaneous emphasis on training, empowerment, and rewards.
As discussed by Takeuchi et al. (2007), training and empowerment
signal that employees are regarded as strategic partners for the survival and success of the organization and are recognized of their
value to the organization. The presence of appropriate rewards
motivates employees to deal with customer requests and problems effectively (Babakus et al., 2003). A careful examination of
the current literature suggests that training, empowerment, and
rewards are in Pfeffers (1994) well-known list of effective practices for managing people and have been reported in the top six
human resource practices (Boselie et al., 2005). Such HPWPs have
been shown among the most important indicators of management
commitment to service quality (Ashill et al., 2008; Babakus et al.,
2003; Kim et al., 2009). Training, empowerment and/or rewards
have also been considered to be the useful managerial implications for business practice in the hospitality industry (Chiang and
Birtch, 2011; Henry et al., 2004; Karatepe and Olugbade, 2009;
Karatepe and Uludag, 2007; Kusluvan et al., 2010). Therefore, this
study investigates the effects of HPWPs, as manifested by training,
empowerment, and rewards, on work engagement.
Second, in a recent meta-analytic study, Christian et al. (2011)
discuss that little is known about work engagement as a determinant of performance outcomes. They also discuss that there
is a need for examining work engagement that may simultaneously lead to in-role and extra-role performances. Consistent with
Christian et al.s (2011) suggestion, this study tests job performance
and extra-role customer service as performance outcomes of work
engagement.
Third, empirical research pertaining to the antecedents and consequences of work engagement in frontline service jobs is still
scarce (Karatepe, 2011; Sltten and Mehmetoglu, 2011). With this
realization, work engagement is treated as a full mediator of the
impacts of HPWPs on job performance and extra-role customer
service for addressing the aforementioned voids in the existing
knowledge base.
By analyzing the black box stage between HPWPs and performance outcomes, the ndings of this study may prove useful
insights pertaining to the management of HPWPs and retention of
engaged employees with heightened performance in frontline service jobs. The next section of the article consists of the description
of SET as the theoretical framework. This is followed by research
hypotheses developed based on SET and empirical evidence, and
the research model. Then, discussions of the method and results
are given. The article concludes with implications for managers and
future research.
2. Theoretical framework, hypotheses, and research model
2.1. SET
SET states that relationships evolve over time into trusting, loyal,
and mutual commitments if the parties (e.g., managers/supervisors
133
134
Training
135
Job performance
H2(a)
H1
Empowerment
High-performance
work practices
Work engagement
H3(a)-H3(b)
H2(b)
Extra-role
customer service
Rewards
training programs, coupled with the lack of service standards, hinder efcient and effective customer service (cf. Carmen, 2011).
Under these circumstances, it is obvious that the hospitality
industry in Romania needs modern human resource management
methods that are associated with HPWPs for retaining a pool of
engaged employees with high quality performance in the organization.
There were 7 four-star hotels and only 1 ve-star hotel in the
Poiana Brasov region at the time of this study. Management of these
hotels was contacted using a letter indicating the purpose of the
study and permission for data collection. Although management of
all hotels agreed to participate in this study, the researcher was not
allowed to directly contact frontline employees. Therefore, hotel
managers distributed the questionnaires to their frontline employees.
The rst page of each questionnaire consisted of information about the assurance of anonymity and condentiality. The
employee questionnaire contained the training, empowerment,
rewards, and work engagement measures as well as items about
respondents prole. The researcher prepared a master list consisting of the name of each frontline employee in the hotel. Each
employee in this master list had an identication number. An identication number was also written on each questionnaire. The
manager questionnaire included the job performance and extrarole customer service measures and had an identication number.
Managers assessed each frontline employees job performance and
extra-role customer service under their supervision. The manager
questionnaires were matched with the employee questionnaires
using the identication number. Each frontline employee and manager self-administered the questionnaire, sealed it in an envelope,
and placed it in a special box in order to keep anonymity and condentiality. Then, the researcher collected the questionnaires from
this box.
Using data from a single source is prone to common method
bias. In their recent review, Line and Runyan (2012) report that
less than 10% of the studies in the hospitality marketing literature
have obtained data from multiple sources. Therefore, consistent
with the suggestions made by Podsakoff et al. (2003), this study
136
(1997) were also employed to measure extra-role customer service. Responses to items in training, empowerment, rewards, job
performance, and extra-role customer service were rated on vepoint scales ranging from 5 (strongly agree) to 1 (strongly disagree).
Response options for items in work engagement (vigor, dedication, absorption) ranged from 6 (always) to 0 (never). Higher scores
indicated higher levels of each construct (e.g., training, job performance).
All items were originally prepared in English and then translated
into Romanian using the back-translation method (Parameswaran
and Yaprak, 1987). Specically, the employee and manager questionnaires were prepared in English. Then, two bilingual individuals
(uent in both Romanian and English) participated independently
in the translation process. Finally, the researcher further checked
the two versions of the employee and manager questionnaires in
English for any inconsistencies. The employee questionnaire was
tested with a pilot sample of ten frontline hotel employees. The
manager questionnaire was tested using a pilot sample of ve
managers. No changes were made in the employee and manager
questionnaires, because frontline employees and their managers
did not have any difculty understanding items.
3.3. Data analysis
This study employed conrmatory factor analysis (CFA) and SEM
through LISREL 8.30 (Joreskog and Sorbom, 1996). Specically, in
the current study a two-step approach containing CFA and SEM
was employed (Anderson and Gerbing, 1988). In the rst step,
the measurement model was assessed in terms of convergent and
discriminant validity (Anderson and Gerbing, 1988; Fornell and
Larcker, 1981).
The second step was associated with a comparison of two models. It should be noted that HPWPs (as manifested by training,
empowerment, and rewards) were represented as a second-order
latent variable. In addition, average item scores of vigor, dedication,
and absorption were calculated as the indicators of work engagement (Schaufeli et al., 2006). The fully and partially mediated
models were compared based on the 2 difference test. Specically, the partially mediated model consisted of the direct effects
of HPWPs on job performance and extra-role customer service as
well as their indirect effects on job performance and extra-role customer service through work engagement. The fully mediated model
included the indirect effects of HPWPs on job performance and
extra-role customer service via work engagement. Having no signicant difference in t suggests that the partially mediated model
does not improve t. Then, the results in the fully mediated model
are used for assessing the relationships.
The hypothesized relationships were tested using SEM. The
overall 2 measure, CFI [comparative t index], IFI [incremental
t index], RMSEA [root mean square error of approximation], and
SRMR [standardized root mean square residual] were used to assess
model t. Although the sample size of this study is small, it appears
to be consistent with the majority of suggestions regarding the minimum sample size of 100 for SEM (Hair et al., 2010). The internal
consistency reliability was assessed using the cut-off value of .70.
The mediation effects were assessed using the guidelines provided
by Baron and Kenny (1986).
4. Results
Measurement results are reported in Table B.1 in Appendix B.
Table 1 presents means, standard deviations, and correlations of
study constructs. In light of the results reported in Table 1, all direct
associations were signicant. Such results met the conditions for
employing a mediation analysis.
5. Discussion
5.1. Strengths of the study
This study proposed and tested a research model that investigated work engagement as a mediator variable in the relationship
between HPWPs and performance outcomes. The strengths of the
study are given below.
First, this study examined the relationship between HPWPs and
work engagement. HPWPs have been conceptualized and measured as a second-order latent variable that is manifested by
training, empowerment, and rewards. This is signicant, because
training, empowerment, and rewards are among the effective
human resource practices (Pfeffer, 1994), are in the top six human
resource practices (Boselie et al., 2005), and have been regarded
among the most important indicators of management commitment to service quality (e.g., Kim et al., 2009). These HPWPs have
also been considered to be the critical implications for hospitality
managers for business practice (Kusluvan et al., 2010).
Second, this study responds to Christian et al.s (2011) research
call by testing work engagement that may simultaneously result in
job performance and extra-role customer service. Third, the present
study adds to the existing knowledge base by testing work engagement as a full mediator between HPWPs and performance outcomes
using data gathered in frontline service jobs in the hospitality
industry (e.g., Karatepe, 2011). Finally, the results from SEM suggest
that all hypotheses are supported and the research model is viable.
While causality cannot be determined due to the cross-sectional
nature of the study, the previously mentioned HPWPs have been
demonstrated to inuence work engagement that in turn leads to
high levels of job performance and extra-role customer service.
137
Table 1
Means, standard deviations, and correlations of study variables.
Variables
Mean
SD
1. Training
2. Empowerment
3. Rewards
4. Vigor
5. Dedication
6. Absorption
5. Job performance
6. Extra-role customer service
3.07
2.93
3.24
3.18
3.39
3.36
3.38
3.28
.85
1.04
.94
1.16
1.12
1.14
.88
.89
1.000
.518
.578
.524
.553
.502
.284
.421
1.000
.434
.435
.406
.272
.407
.437
1.000
.644
.576
.432
.370
.411
1.000
.790
.666
.361
.465
1.000
.701
.324
.417
1.000
.338
.418
1.000
.682
1.000
Note: Composite scores for each construct were calculated by averaging respective item scores. Correlations are signicant at the .01 level.
.47,
CFI = comparative fit index; IFI = incremental fit index; RMSEA = root mean square error of
approximation; SRMR = standardized root mean square residual.
Fig. 2. Structural model results.
138
literature (Christian et al., 2011; Karatepe, 2011), but also consistent with the precepts of SET (Cropanzano and Mitchell, 2005;
Takeuchi et al., 2007).
According to strategic human resource management perspective, HPWPs should motivate employees to demonstrate positive
behavioral outcomes (Huselid, 1995). The results of this study
provide support for this claim. As a motivational construct, work
engagement plays a full mediator role between HPWPs and
performance outcomes. Specically, the availability of HPWPs,
as manifested by training, empowerment, and rewards, makes
employees stay engaged in their work. Such employees in turn display high quality job performance and willingly go out of their way
for satisfying customers.
5.3. Management implications
The results of this study delineate several useful implications
regarding the management of HPWPs and retention of engaged
employees in the workplace. Work engagement is a long-term and
continuous process. Therefore, managers need to understand the
critical role of social exchange for work engagement and its performance outcomes (Saks, 2006).
Managers should provide employees with training, empowerment, and rewards that would make them feel obliged to respond to
the organization via elevated levels of work engagement and performance outcomes. Specically, management of the hotels should
make sure that appropriate reward policies are in place. Management of the hotels should also ensure that they have continuous
training programs for improving employees technical and behavioral skills and provide them with the adequate responsibility and
authority for managing customer requests and delivering effective service recoveries. The presence of continuous and effective
training and empowerment practices, coupled with employees
perceptions of fairness in rewards, would enable managers to retain
a pool of engaged employees who can deal with customer requests
and complaints effectively and go beyond their formal role requirements for satisfying customers. As stated by Bakker et al. (2008), it is
important to retain engaged employees in the workplace, because
they often have positive emotions and better psychological and
physical health than disengaged employees.
On the other hand, it should be noted that the acceptance of
empowerment by frontline employees is not a sure thing, because
it may result in stress (Yavas et al., 2010). With this realization, a signicant implication for managers is the need for training employees
successfully to accept responsibility and authority in challenging
service encounters. On a closing note, the aforementioned implications would also be useful for hospitality managers in Romania
due to the fact that there is a lack of qualied manpower in most
organizations that are devoid of contemporary human resource
management practices.
Table A.1
The number of employee questionnaires distributed and collected.
Distributed
Hotel (I) (5-star)
Hotel (II) (4-star)
Hotel (III) (4-star)
Hotel (IV) (4-star)
Hotel (V) (4-star)
Hotel (VI) (4-star)
Hotel (VII) (4-star)
Hotel (VIII) (4-star)
Total
Collected
25
20
20
20
10
10
6
12
25
20
20
20
10
6
3
10
123
114
Note: 4 Questionnaires from the Hotel (VIII) (4-star) were eliminated because of
missing information. Therefore, the total number of usable questionnaires was 110.
139
Appendix B.
Standardized
loading
.79
t-Values
9.69
.89
11.73
.89
11.79
.88
11.52
.87
11.42
.92
12.49
.96
13.53
.79
9.76
.86
11.28
.87
.95
11.42
13.32
.90
12.03
.88
.88
11.32
11.35
.92
.87
.71
12.29
11.26
8.39
.76
8.32
7.29
.67
Job performance
This employee is a top performer
employees here
This employee gets along better with
.83
10.17
customers than do others
This employee knows more about services
.87
10.86
delivered to customers than others
This employee knows what his/her customers
.71
8.17
expect better than others
Extra-role customer service
This employee voluntarily assists customers
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