BA (Hons) - Dissertation 2009

Prague College
How to train and motivate employees in the tourist
market in Prague?
Simona Řeháková
BA (Hons) International Business Management – 3rd year
June 2008
Simona Řeháková 2009
Dissertation
Prague College UNDERGRADUATE STUDIES DISSERTATION

CERTIFICATION
1. I confirm that the work in this Dissertation is original and has been carried out by me
as part of my programme of study.
2. I confirm that all secondary material has been properly acknowledged by me and
referenced in this work.
Signed:……………………………………….
Name: Simona Řeháková
Date: 10th August, 2009.
Course: BA (Hons) International Business Management – 3rd year
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Abstract
The result of this research project should answer of the question how to train and motivate
employees in the tourist market in Prague. There are fundamental and specific requirements and
theories for training and motivation of employees depending upon different companies
preferences. This study makes reference to all these theories. However, the reality differs from
the theoretical part, in other words the situation of tourism in the Prague market is distinct in the
sense of training and motivating employees. Therefore, the research is supported by primary
research. The essential tools of our primary research is an online survey that has been prepared
and distributed to experts and top managers operating in tourism in Prague, questionnaires
which have been handled to employees of one of the most luxurious hotel in Prague and used
for comparison with the view of the issue of top managers. These primary data have been
supported and completed by a semi-structured interview carried out with a couple of top
managers in order to develop an effective training and motivation plan. All the facts and
information gathered from these analyses helped to support the final conclusion. The most
important result from the qualitative primary research consists of the fact that managers are
mistaken in terms of what motivates employees the most. It is demonstrable that managers‟
insights differ from the employees‟ ones. Alarming results about the level of motivation of
employees ensue in the questionnaire. More than half of the employees are currently unsatisfied
in their job in their particular company. The conclusion of this research paper may be covered by
the following words: tourism is about services. Consequently the services are based only on the
human factor. Managers, who are not willing to invest in employees, therefore are not basically
willing to invest in their company. Managers should never forget that if employees are motivated
and successful, then the company is a healthy and successful one in the market.
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Acknowledgements
This research project has been a very enlightening and rewarding experience for me in an area
that is my personal interest. I would like to acknowledge and express my gratitude to several
people who provided generous amounts of support and cooperation during this paper work.
Firstly, I have benefited greatly from the experience and support from my dissertation supervisor,
David Gannon who provided me with help and guidance along the whole research paper.
Special thanks are addressed to the Market Manager of lasminute.com, Michal Strnad. He
enabled me to get and gather data from the survey and interviews due to his contacts with the
key directors and managers of different hotels. Without his help, my research would not be
relevant and valuable.
With all respect, I would like to thank to Veronika Fajcikova who inspires and motivates me in my
job and also life. She is the greatest model to me regarding of leading, training and motivating
people.
Finally I would like to thank to all participants who enable me to finish this research paper and
finalize my study. This research could not be accomplished without their willingness to
participate.
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Table of Content
Abstract...................................................................................................................................... 3
Acknowledgements ................................................................................................................... 4
List of tables and charts ........................................................................................................... 7
1. Introduction ........................................................................................................................ 9
1.1. The extent of the subject area .............................................................................................. 9
1.2. Research questions:........................................................................................................... 10
1.3. Research objectives: .......................................................................................................... 11
1.4. Summary............................................................................................................................ 11
2. Literature review............................................................................................................... 12
2.1. Background of the Prague market ...................................................................................... 13
2.2. Learning theories................................................................................................................ 14
2.3. Learning styles ................................................................................................................... 16
2.4. Training methods................................................................................................................ 18
2.5. Motivation theories ............................................................................................................. 22
2.6. Summary............................................................................................................................ 35
3. Research Methodology .................................................................................................... 36
3.1. Definitions and basic knowledge ........................................................................................ 36
3.2. Secondary data .................................................................................................................. 39
3.3. Primary data ....................................................................................................................... 45
3.3.1. Observation method .................................................................................................... 46
3.3.2. Focus group ................................................................................................................ 46
3.3.3. In-depth interview ........................................................................................................ 47
3.3.4. Survey method ............................................................................................................ 47
3.4. Research techniques and methods .................................................................................... 48
3.5. Sampling ............................................................................................................................ 50
3.6. Summary............................................................................................................................ 55
4. Analysis ............................................................................................................................ 64
4.1. Methods of analysis............................................................................................................ 64
4.2. Market background............................................................................................................. 66
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4.2.1. Development since 1990 ............................................................................................. 66

4.2.2. Current situation on Prague market ............................................................................. 67
4.2.3. Competition in Prague ................................................................................................. 69
4.3. Human Resources.............................................................................................................. 70
4.3.1. Importance of HR ........................................................................................................ 70
4.3.2. Situation with unemployment / employment in Prague................................................. 70
4.4. Survey analysis .................................................................................................................. 75
4.5. Questionnaire analysis ....................................................................................................... 86
4.6. Semi-structured Interviews analysis ................................................................................... 92
4.7. Review of key findings ........................................................................................................ 95
5. Conclusion...................................................................................................................... 100
5.1. Development of credible theory ........................................................................................ 103
5.2. Recommendation ............................................................................................................. 103
6. Self reflection ................................................................................................................. 107
6.1. Learning experience ......................................................................................................... 107
6.2. Personal development ...................................................................................................... 107
6.3. Strengths & Weaknesses ................................................................................................. 108
6.4. Improvements .................................................................................................................. 110
6.5. Summary.......................................................................................................................... 110
References ............................................................................................................................. 111
Bibliography .......................................................................................................................... 115
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List of tables and charts
Table 1: Summary of learning theories 16

Table 2: Informal vs. formal learning 20
Table 3: Advantages and disadvantages of interview and on-line survey 56
Table 4: Summary of the participants 57
Table 5: Translation of the questions 59
Table 7: Participants of the interview 61
Chart 1: Number of accommodation facilities in Prague 69

Chart 2: Progress of the rate of unemployment in 1995 - 2009 in the Czech 72
Republic
Chart 3: Progress of the rate jobs offers on the market 73
Chart 4: Progress of the rate of unemployment in 2004 - 2009 in Prague 74
Chart 5: SURVEY - Result of the 2nd question 75
Chart 6: SURVEY - Result of the 3rd question 76
Chart 7: SURVEY - Result of the 4th question 77
Chart 17: QUESTIONNAIRE - Result of the 2nd question 86
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Chart 18: QUESTIONNAIRE - Result of the 3rd question 87

Chart 19: QUESTIONNAIRE - Result of the 4th question 87
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1. Introduction
1.1. The extent of the subject area
The fastest and most viewable progress on the Czech market appeared after the long
communistic era fell down. Since the 1990, the Czech country became more and more
interesting to the potential visitors from the whole world. The major reason was obvious; the
market was not expensive and hungry for new original improvements and products. Travellers
were willing to spend their money here in Czechia; especially then in the capital city Prague.
Nowadays the situation changed rapidly. The travellers expect higher level of services if their
vacation costs more. Even thought the trend is following the trend in western countries and
many companies switch their objectives and focus on services, the success cannot be managed
without good human relations and quality work forces.
The place where the travellers are centralized in the Czech Republic in particular is definitely
Prague. The labour-hunger in this town is huge. Social-survey demonstrates these conditions
very clearly. Trained and motivated employees are followed by success and high-quality
services provided.
This research project is focused on this issue. Since my interest in the travel industry and HR is
high, the research paper will conducts the major objectives of businesses in this industry, the
situation of labour from the prospective of human resources specialists and possibilities for the
top managers and how they can motivate and train its employees effectively.
First of all, the purpose of this research project is to analyze the current situation on the tourist
market in Prague and determinate if there is a gap of qualified employees on the market.
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Consequently and based on this research the training and motivation methods and styles will be
discussed in order to develop effective training and motivating plan for managers in tourism in
Prague.
I am interested in this subject due to the fact, that I already work for a big hotel company in
Prague and we daily have to face this HR issue.
1.2. Research questions:
My research will attempt to solve the following concerns:
How was the evolution of Prague market?
How is the current situation on the Prague market?
o From the prospective of the travel industry.
o Or from the HR prospective point of view.
How do managers motivate their employees?
How can the effectiveness of training be explained?
What are the possibilities for managers in the future?
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1.3. Research objectives:
To indentify and research the evolution of tourism on Prague market.
To understand the current situation on the market.
o To identify the lack of qualified employees.
o To research the training methods that are used within the companies.
o To analyze the motivation plans and programs that are already used by
managers.
To determine the major criteria of effective training.
To establish an effective motivation plan.
To implement the findings into the current market situation.
To develop an explanatory theory that associates with the effectiveness of training and
motivation of employees in tourism.
1.4. Summary
After the objectives and the aims of the project are set up, the research may begin. A literature
review is prepared along the secondary data research. A critical overview of the situation and
gathered resources has been composed. Consequently, these data have been supplemented
with the primary research, namely a questionnaire or interview. All ascertained data have been
thoroughly and carefully analyzed in order to be able to provide sufficient and valuable data
which helps to conclude this research paper by meeting the research objective and finally the
recommendation.
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2. Literature review
The initial stage of a successful and valuable research paper is the literature review. It gives us
the overview of the subject. The literature review design keeps the reader connected with the
topic and the following sections of this research paper. The theories are defined, explained and
inserted in the fundamental context, which is important in order to better understand the issue.
First of all, the current market situation is discussed. Background of the Prague market from the
tourism point of view is provided to the reader. This section characterizes the number of visitors
to Prague, its progress and decline. Consequently, the number of accommodation facilities is
mentioned in contribution with demand of the market. Moreover, the sources of this information
are cited with the inclusion of experts´ opinions.
The following part of this literature review allows the reader to understand the learning theories,
importance and styles. It is obvious, that the knowledge of individual perception of information
should be analyzed when selecting an appropriate training method.
Regarding the objective of this paper, the effectual training methods must be observed and
chosen, in order to be able to reach the companies objectives. In other words, each individual
needs to be trained in what and how to do a certain activity.
Motivation theories are closely associated with training. Simplified, one thing is to train the
individual, other thing is to motivate the individual to use the knowledge from the training for
better performance in the work place. It is the fundamental reason, why this research paper also
involves the motivation theories.
At the end of this chapter, a summary is provided in order to keep the natural flow of this
research paper.
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2.1. Background of the Prague market
According to the literature research, tourists’ inflows in the last year expressively slowed down.
In 2006, 6,4 million tourists travelled into the Czech country, which means only about 1,6%
more than in 2005. According to the research, the capital city Prague saw about 0,6% less
tourists than in the previous year (PROFIT, 18/2007, p.56).
Based on an article published in EURO magazine (EURO, 34/2007, p.56), the level of tourist
growth is not so fearful. The number of regular travelers coming back to the Czech Republic has
growing potential; percentagewise it is already almost 40% (Czech travelogue, 6/2007, p.24).
Professional publications say that currently hotels and accommodation facilities deal with a
formidable situation. The total number of hotel units is increasing rapidly. Many investors focus
on developing new accommodation spaces including conference facilities. The issue, which
appears is that it is seems as supply is greater to demand on the Prague market. Any company
operating on the tourist market needs to progress to be successful, this brings a demand on
financial support. The economic factor also influences how easy or complicated the process of
dealing with competition will be. To be able to stay competitive towards rivals, the hoteliers need
to keep their operational units updated (interiors as well as exteriors). This process can be
extremely expensive and time consuming. The Czech government has already obtained a grant
from European Union, which should be used on tourists and development of regions and it
definitely brings a positive impact on the progress of all businesses in those chosen regions.
This financial aid can be a helpful tool for many smaller businesses managing hotels or other
similar facilities. However this money will be primarily used for regions within the Czech Republic
excluding Prague.
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2.2. Learning theories
First of all, understanding of the principle of learning is needed. The argument why it is so
important is that the way how new information is perceived by the listener or reader is crucial in
the context of the selection of the proper training methods. Understanding of how individuals
learn things allow us to apply a particular method of training or motivation. Lack of such
knowledge may evoke the choice of an irrelevant and unsuitable training method, which means
time is just wasted.
There are many different learning theories about how people perceive new information and
learn. The theory is an explanation of how the learning process works and can be approached.
Baum 2006 cites “Failte Ireland (2005b) who notes that work-based learning can be very
operational in focus, it sometimes involves collective learning across a team, and it can
frequently involve the accumulation of tacit knowledge. In this latter case, the nature and extent
of the learning can remain somewhat ambiguous, precisely because the content learned may be
tacit and may remain unarticulated in any formal curriculum statement. Notwithstanding the
ambivalence that can surround such learning, this type of development activity is frequently the
most valuable because it is closest to the immediate skills requirements and behaviors
associated with the high standards of job performance”.
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There are three basic learning theories (HNC/HND Business, 2004):
Behaviorist – it this case, the learner is essentially passively responding to external
environmental stimuli. Its behavior is shaped through positive or negative reinforcement, which
increases the probability that the exact behavior will happen again just when the stimuli are
repeatedly activated. A simplified explanation according to this theory, respond to a specific
situation which has already happened several times, activated stimuli (e.g. hearing) and
approached positive reinforcement, will be always the same or with very similar feedback.
Repetition of this stimuli-response influenced by specific conditions evokes the same response
in the future.
Cognitive – the learning process is focused on internal, mental activities (thinking,
memory, knowledge and problem solving). These mental activities have to be explored before a
person learns from it. Conclusion of the cognitive approach is not simply learning new habits, but
dealing with already existing information and choosing acceptable and alternative methods to
approach its goals.
Social and situational – this theory is based on the study of the social environment,
learning by imitating other people who are significant to the person. The meaning of role model
is highly important in this case. Social identity and behavior is defined by reflection from other
people. The social learning approach is based on watching and analyzing the way how others
behave in a certain situation.
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Summary of learning theories Table 1
Aspect Behaviourist Cognitivist Social and situational

View of Change in Internal mental Interaction /observation
the behavior process (including in social contexts.
learning insight, information Movement from the
process processing, periphery to the centre
memory, perception of a community of
practice
Locus of Stimuli in external Internal cognitive Learning is in

learning environment structuring relationship between
people and environment.
Purpose in Produce Develop capacity Full participation in

education behavioral change and skills to learn communities of practice
in desired better and utilization of
direction resources
(Mark K.Smith, 2003)” cited HNC/HND Business (2004)
Consequently the learning style should also be mentioned. Learning style is influenced by
individual skills and preferences that affect how a person perceives, gathers and analyzes
information. Simplified, it’s the way of learning which is the most suitable and effectual for the
individual person.
2.3. Learning styles
There are three major learning styles (HNC/HND Business, 2004):
Visual (spatial) – the best way of learning is seeing what need to be learned. This
particular style focuses on images, using illustration, demonstrations and body language.
Auditory (Aural) – the best way is hearing what is needed to be learned. Consequently it
is focused on spoken word, using sound and music.
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Kinesthetic (psychical) – the best way is by feeling what needs to be learned, such as
through motion and touching. Address to kinesthetic learners, using hands-on activities,
movement, dance, writing or working with interactive object, these are major helpful tools
for the learners.
Following are additional learning styles
Verbal (linguistic) – which uses mainly words both in speech and writing
Logical (mathematical) – learners prefers using logic, reasoning and systems
Social (interpersonal) – learning is effective in groups or with other people
Solitary (intrapersonal) – self study is the priority factor in this style
Armstrong (2003) also identifies “blending learning” which covers a combination of a range of
processes and methods that are used for the training and support of one another to maximize
their control. Blending learning may be clarified as a mix of some of the following activities for,
for example: Informal learning, workplace learning, self-managed learning, personal
development learning, action learning, and outdoor learning, coaching or e-learning.
The delivery of training has to be systematic and prepared in a particular sequence of activities.
Armstrong (2003) specifies the systematic training as “training that is specifically designed,
planned and implemented to meet defined needs”. According his theory, there are four-stage
models for developing training:
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define training needs,
what kind of training needs to be used in order to satisfied these needs,
experienced and trained trainers have to be used in order to implement the chosen
training,
follow up and evaluation of the training to ensure that it is effective.
Consequently, there was the “systematic training cycle” developed in order to help organizations
move away from ad-hoc non-evaluated training, and replace it with an orderly sequence of
training activities. Torrington, Hall and Taylor (2008) cites “Harrison (2005) contests that such a
cycle is not necessarily the most appropriate to use as it falls far short of the messy world of
practice, and does not focus adequately on learning. Sloman (2001) argues that it may have
fitted the 1960s mood for rationality and efficiency, but it is somewhat mechanical and fits less
well with our faster pace of continuous change”.
2.4. Training methods
Kusluvan (2003) explains the training methods as: “training is the transfer of work-related skills,
knowledge or information”. The purpose of training is teaching employees new skills, knowledge,
behavior and abilities in order to increase their performance in work.
Definition of training methods can be also be determined as the following: it can be present as
practices and situations how can learners be taught. The issue is taken from the trainers
prospective; impact from the learners’ side is minimal.
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Regarding the value of the training, “Mellon (1988) noted the benefits of training to both the
employer and the employee have been documented…. Especially in the tourism industry, Janes
(2000) found that lodging organizations valued training and they perceived a value for
employees as well”, cited by Kusluvan (2003). He also suggests that if a company placed more
emphasis on training, then it also placed greater value on training than companies that provide
much less training.
In context of the topic, Kusluvan (2003) define barriers that eliminate valuable training such as:
1. “a lack of time,”
2. “high employees turnover,”
3. “high business demands,”
4. “cost, and”
5. “a lack of training resources.”
When good training is missing there is a potential danger of formatting an atmosphere of tension
and crisis of conflicts, because basically nobody knows how to do their job or how to improve it
(Miller, 2009).
“Without clearly and accurately defined learning objectives, well thought out training methods,
and thoroughly written content, any effort at delivery will fail” Kusluvan (2003).
“A study by Eraut et al (1998) established that in organizations adopting a learner centred
perspective, formal education and training provided only a small part of what was learnt at work”,
quotation by Armstrong (2003).
Robinson (2009) determined that training can be delivered either internally or externally. Internal
training includes the most common and used on-the-job training. Such training is based on
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observation of colleges or managers. The biggest advantage is that it is cost effective and
inexpensive.
Miller (2009) explains training as a process of teaching people how to do their job and achieve
the companies’ objectives.
On the other hand, Robinson (2009) also claims that there is also external training: off-the-job
training. Such methods mean that training is delivered by a specialized external training
department (lectures, seminars, workshop etc.). The advantage of such training is in getting new
ideas, knowledge and skills that are not limited only on the organization´s behavior. The
disadvantage is that this method is more expensive and may be more time consuming.
Torrington, Hall and Taylor (2008) take the emphasis on the fact that off-the-job training is often
too expensive and superficial. “The most valuable courses of this type are those that concentrate
on specific skills or knowledge, such as developing time management, interviewing or
disciplinary skills” (Torrington, Hall and Taylor, 2008)
Armstrong (2003) summarizes the characteristics of informal and formal learning, as in table 2.
Informal vs. formal learning Table 2
Informal Formal
Highly relevant to individual needs Relevant to some, not so relevant to others
Learners learn according to need All learners learn the same thing
May be small gap between current and target May be variable gabs between current and
knowledge target knowledge
Learner decides how learning will occur Trainer decides how learning will occur
Immediate applicability (just-in-time) learning Variable times, often distant
Learning readily transferable Problems may occur in transferring learning to
the workplace
Occurs in work setting Often occurs in non-work setting
Armstrong (2003)
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Examples of training methods are presented below (HNC/HND Business 2004).
Lectures – this is the traditional method reminiscent classical lessons in school. A
teacher or trainer is presenting and explaining the exact task and subject. Interactivity is
limited in this kind of training.
Case studies – many international schools are based on this concept. Learners obtain a
case or project to work with. The solution of the case is always a result of previous
analyses. This sort of training is led in small groups.
Role play – this is a non-traditional method which is becoming more popular in the
present period. An exact model situation is prepared, usually with two participants
involved and the purpose of the training is to study and analyze the situation and
behavior of participants.
Simulation – is becoming to be one of the most favorite methods of training. However this
is not a case which can be used for training in all industries. Demand on technical
equipment is standard matter and also this fact makes the difference between simulation
and role play training.
Outdoor training – is definitely a non-traditional method, which is not used too often. An
example of outdoor training is rock climbing. The aim is to defeat participant´s
weaknesses and beat the fear and that develops stronger individuality.
E-learning – interactivity is a huge pro for this method. Computer equipment is a need. It
is not the rule, that e-learning would be more expensive, if all aspects are taken into
consideration, for example the cost for a trainer is avoided. On the other side, this
method can also be time-consuming.
Teambuilding – is a relaxed form of training. Usually a big group of employees leave the
city to an exact place, at least for one day. Training and special events for distraction are
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held in the teambuilding program. The main objective of this sort of training is to reinforce
the company´s culture and strengths.
Based on the literature research, the theory of group and individual training differs from each
other. O´Neil and Drillings separate these two areas and regard with different perception of
them.
2.5. Motivation theories
There have been many theories of motivation presented. One of the most traditional ones is
theory based on the assumption that money is the primary motivator. The primary understanding
of motivation theories may be used by managers as powerful tool in order to motivate people in
a company.
Regarding to this topic, attention should be given especially to an appropriate system of
motivation, job satisfaction and reward, especially in the hospitality industry. As Mullins (2001)
quote Riley, he suggest, “hotel and catering management has a real investment in motivation
because most of its jobs requires input where effort and personal character actually matter”. The
motivation can be easily based on understanding why people behave in a certain way.
Motivation has direct impact on the performance of the employees and the managers need to be
aware of that. That is why it is so important to understand the employees’ needs, motivation
factors and job satisfaction. Simplified, motivation is derived from the fulfillment of personal
needs and expectations.
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Montana an Charnov (2000) interpret the definition of motivation as: “the process of stimulating
on individual to take action that will accomplish a desired goal”.
The word motivation can be also explained in two different ways. As HNC/HND Business (2004)
mentions there these two following definitions:
“the mental process of choosing desired outcomes, deciding how to go about them, assessing
whether the likelihood of success warrants the amount of effort that will necessary, and setting in
motion the required behaviors. This is sometimes called „INTRISTIC motivation‟, as it arises from
factors and processes within the individual.“
On the other hand the explanation might be: “the social process by which the behavior of an
individual is influenced by others. „Motivation„ in this sense usually applies to the attempts of
organizations to maintain or increase workers„ effort and commitment by using rewards and
punishment. This is sometimes called „extrinsic motivation„, as it arises from actions done to or
for the individual by other.” (HNC/HND Business, 2004)
Equally, Mullins (2001) explains the diversification between two categories; extrinsic and intrinsic
motivation:
Extrinsic motivation – such motivation is connected with tangible rewards (for example:
promotion, job security, contract of service, the work environment).
Intrinsic motivation – on other hand, relates to psychological rewards (such as
opportunity for challenge, positive recognition, achievement or the internal feeling of
personal satisfaction from the job).
“Herpen, Praag and Cools (2005) demonstrated a positive relationship between the perceived
characteristics of the complete compensation system and extrinsic motivation. Intrinsic
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motivation, on the other hand, was not affected by the design of monetary compensation, but by
promotion opportunities. They also found that the compensation system significantly affected
work satisfaction and turnover intent” Price (2007).
Mullins (2001) also provides a three-fold framework that points out the three major starting
points that focus on work motivation and job satisfaction: economic reward (salary, benefits,
material goods), intrinsic satisfaction (challenging job, variety, a sense of involvement and
achievement) and social relationship (work environment, group membership, or feeling of
status).
According to Carr (2004), in intrinsic motivation “we do things because we like the activities
themselves (for example art, sport or adventure”. Comparing to extrinsic motivation “we do
things because the outcomes of these activities will bring about situations that we like or which
allow us to avoid unpleasant events”.
According to Montana and Charnov (2000) , the motivation can be explained as “the process of
stimulating an individual to take action that will accomplish a desire goal”. Consequently, there is
necessary to follow the hierarchy need, “the five different levels of individual needs identified by
Abraham H. Maslow in this theory of motivation – namely physiological, safety, social, esteem or
ego, and self-actualization”.
Another source explains the motivation as following: “energy in motivation theory is
fundamentally a matter of needs”. This statement is complete by motivation theories that “are
built on a set of assumptions about the nature of people and about the factors that give impetus
to action” (Deci and Ryan, 1985).
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On the other hand O´Neil and Drilings (1994) say about the framework for motivation in their
book that “the great majority of education and training research and development is focus on the
cognitive dimension of learning. Less Attention has been given in the literature and the design of
education and training itself to motivational variables and their influence on performance”.
The success of theories of motivation depends on “the resources and disturbances of the
environment” (Apter, 1989). Simplified, the individual is influenced by the environment that
determines how strong and needed the motivation is.
Regarding to Deci and Ryan (1985), “motivation theory began with Freud´s (1914, 1915) drive
theory, whereas within empirical psychology it can be said to have begun with Hull´s (19463)
drive theory. Freud asserted that there are two important drives – sex and aggression, whereas
Hull (1943) asserted that there are four - hunger, thirst, sex and the avoidance of pain”.
On the other hand, Hull (1952) “asserted that motivation stemmed from physiological need
deprivation which „drove‟ organism to engage in random activity until the need was satisfied and
the drive was thus reduced“.
Mullins (2001) presents the following major approaches of motivational theories: expectancy
theory, equity theory and goal theory.
Expectancy theory – this theory is based on the fact that employees are influenced by the
expected result of their action. The level of performance in this case relies on the perceived
expectations regarding the desired outcome. Regarding this theory, in broader terms, the
generally high level of staff turnover may be based on good performance of individuals and very
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likely to lead to greater opportunities of promotion. Mullins (2001) put emphasis especially on the
following two expectancy theories:
Vroom´s expectancy theory
This theory is consistent from three major variables: valence, instrumentality and
expectancy.
- Valence - “it is a measure of the attractiveness of performance for a particular
outcome to the individual” (Mullins, 2001).
- Instrumentality – performance related outcomes lead to the satisfaction
- Expectancy – “this is the degree of probability that the choice of particular action will
actually lead to the desire outcome” (Mullins, 2001).
Combination of expectancy and valence has to come up with positive results in order that
motivation also occurs in a positive way. When one of these constants is low or zero,
there is no motivation or it is really low (motivational force).
The porter and Lawler expectancy model
Porter and Lawler tries to expend the motivational force mentioned above. It may be
mediated by three following sets of variables:
- Individual abilities and traits – intelligence, skills, knowledge, training. These factors
influence the ability to solve a given task or activity.
- The person´s role perceptions – this is the way how the employees see their work
and the role they should adopt.
- The nature of intrinsic and extrinsic rewards and perceived equitable rewards
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Equity theory – the most powerful motivational force in this theory is a striving for equity. Equity
allows the individual to compare his or her performance and the rewards received for it. It should
be remembered that this theory “holds that the perception of unfairness is powerful motivating
force in the workplace” (Montana and Charnov, 2000). Equity involves individuals’ feelings and
perceptions and is always a comparative process (Amstrong, 2003). Adams (1965) note that
there are two types of equity: distributive equity and procedural equity.
Goal theory – “the basic premise of goal theory is that people´s goals or intentions play an
important part in determining behavior” (Mullins, 2001). Latham and Locke (1979) developed the
goal theory and they state that “motivation and performance are higher when individuals are set
specific goals, when goals are difficult but accepted, and when there is a feedback on
performance” cited by Amstrong (2003).
Self-determination theory
Carr (2004) says that this motivational theory was developed by Richard Ryan and Edward Deci.
The theory determines “that when our needs for competence, relatedness and autonomy are
satisfied, intrinsic motivation is likely to occur, but self-motivation is less likely when these needs
are thwarted”.
Accordingly, in the case of psychoanalytic theory of motivation, “emphasis was on unconscious
urges and their relationship to cathected object, although the volitional ego was given a
secondary role in the regulation of behavior (Deci and Ryan, 1985)”.
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Maslow also said “all individuals seek to actualize their unique potential, to become all that they
are capable of and to be autonomous in their functioning”.
A similar point was made by Rogers (1963) who stated that “life activity can be understood in
terms of the actualizing tendency, which is the organism´s propensity to maintain and enhance
itself”.
To sum up, the self-actualization concept is based on the individuals’ development to the point of
their full potential in an integrated and uncomplicated way.
Maslow´s Hierarchy of needs Theory
Maslow´s Hierarchy of needs theory “suggests that there are five needs systems that account for
most of our behavior. He placed these in a hierarchy ranging from the most primitive and
innovative in terms of the behavior they promote to the most mature, These needs systems
range from the physiological or more primitive factors, to safety, belonging, ego-status, and self-
actualization needs in that order” (Montana and Charnov,2000).
If Maslow´s theory holds, there are some important implications for managers. There are
opportunities of motivating employees through management style, company events,
compensation packages etc.
Physiological needs: provide lunch breaks, rest breaks, free drinks (water) in the work
place and wages that are sufficient to purchase the essentials for life.
Safety needs: provide a safe working environment, retirement benefits, and job security.
Social needs: creating work community (network) and social events.
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Esteem needs: recognize achievements to make employees feel appreciated and
valued. Offer job titles that convey the importance of the position.
Self-Actualization: Provide employees a challenge and the opportunity to reach their full
career potential.
The positioning and importance of single needs in the higher level of this hierarchy may be
distinct in different cultures. Many aspects (personal attitude, life style, wealth etc.) influence the
individuals and their needs. For instance, reputation can be perceived on the top level of
Maslow´s hierarchy in one country but is not so important in a different country. Or some
cultures appear to place social needs before any others.
However, not all people have the same needs, especially at the higher level of the Maslow´s
hierarchy – different employees may be motivated by entirely different factors. To motivate an
employee, it is important that managers recognize the need level at which the employee
operates.
In comparison of Maslow´s Theory with Vroom´s expectancy theory, Montana and Charnov
(2000) stress that: “the needs approach to motivation as developed by Maslow and Herzberg
does not adequately allow for difference in individuals; Vroom´s approach attempts to explain
behavior in terms of an individual´s goal and his or her expectations of achieving these goals”.
Two-factor, or motivation-hygiene theory
HNC/HND Business (2004) publication explains Frederick Herzberg (1966) who belief that there
are two basic need categories of individuals at work:
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“the need to avoid unpleasantness, associated with fair treatment in compensation,
supervision, working conditions and administrative practices”. Such needs may be
satisfied by “hygiene factors”. Such factors may minimize low job performance or
dissatisfaction, however they may have the ability to motive the employees to a higher
level of satisfaction or performance. Hygiene factors are influenced by how people are
treated at work.
“the need to develop in one´s occupation, as a source of personal growth, associated
with factors such as advancement, recognition, responsibility, challenge and
achievement” (HNC/HND Business, 2004). Such needs may be satisfied by “motivator
factors”. These factors may have the advantage to achieve and influence the individuals’
positive attitudes, greater effort and performance. Motivator factors offer satisfaction of
higher-level needs and are related to what people are willing to do at their work.
As Mullins (2001) interprets Herzberg, he assumes that the two-factor theory is “essentially a
theory of job satisfaction related to motivation at work”.
Consequently, Montana and Charnov (2000) interpret Frederic Herzberg and his theory as the
belief that “all work-related factors can be grouped into one of two categories: hygiene
maintenance factors, which will not produce motivation but can prevent it, and motivator factors,
which can encourage motivation”.
Miller (2009) advises that such factors must be maintained at satisfying levels in order to avoid
negative motivation. As hygiene factors may be named; company policy, working conditions,
compensation or supervision, in brief the work environment. On the other hand, motivators may
be represented by recognition, responsibility, achievement, advancement or work itself.
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This two-factor model has been criticized by many authors. As HNC/HND Business quotes “a
satisfied worker is not necessarily a high producer, and a high producer is not necessarily a
satisfied worker, (Armstrong, 2003)”.
Mullins (2001) identifies the theory controversy related to methodology. He says “describing
events which gave rise to good or bad feelings is subjective and likely to influence the result.
People are more inclined to attribute satisfying incidents at work, the motivators, as a favorable
reflection on their own performance”. Mullins (2001) also assumes that another reason for
criticism of this theory is the nature of the theory and the lack of allowance for individual
differences. It is obvious that each particular individual has different needs and different levels of
satisfaction.
Mullins (2001) highlights a number of issues that relate with Maslow´s theory to the work
situation. He says “people do not necessarily satisfy their needs, especially higher-level needs,
just through the work situation”. There is the need to understand the employees’ social lives, not
just behavior at work, in order to be able to satisfy their needs. It should be remembered that
Maslow´s theory is focused mostly on individual development and motivation not only on the
behavior of employees in the work place.
In comparison, Mullins (2001) refer to Alderfer’s continuum of needs model, which modifies
the traditional hierarchy model of needs. This Alderfer´s model consists of three core sets of
needs: existence (safety, material nature), relatedness (love, belonging, affiliation) and growth
(self-actualization).
Alderfer suggests that “although individuals normally progress through the different levels of
needs, they are more of a continuum than a hierarchy” (Mullins, 2001). He believes that
individuals may be motivated to satisfy more than just one basic need. It follows that lower-level
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needs decrease in strength as they become satisfied. “However lower-level needs do not have
to be satisfied before a higher-level need emerges” (Mullins, 2001).
Another theory of human motivation is determined by McClelland´s words as below.
McClelland´s Theory of Human Motives “concerns how motivates of achievement, power and
affiliation affect behavior in the work environment. In general, McClelland believed that motivates
of achievement and power are positive factors leading to high performance, while affiliation
motivation is a negative factor, interfering with objectivity” (Montana and Charnov, 2000)
Also the McGregor´s theory X and theory Y may be mentioned. “Douglas McGregor (1960)
stressed the importance of understanding the relationship between motivation and behavior. The
traditional view, Theory X, suggest that managers must coerce, control, or threaten employees
in order to motivate them”, Montana and Charnov (2000) notice.
According to Miller (2009) theory X and theory Y applied Maslow´s theories directly to the
problem of motivating workers on the job. McGregor made two contributions with theory Y. He
intended the view of the way that people look at work. “It is as natural as play or rest when it is
satisfied a need”. On the other hand theory X views of the worker, and “it suggests a clear
reason why people work willingly”. The second McGregor contribution was the idea that
particular individual needs, ego or self-actualization needs can be closely connected with the
needs and goals of the organization and consequently in harmony with the individual´s job.
The definition of motivation can be simplified as: internal and external factors that stimulate
desire of employees to be continually interested in and committed to a job, role or subject.
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For complexity also the carrot-and-stick method and motivation through fear should be
discussed. As Miller (2009) points out, motivation though fear is the oldest and very surprisingly
an often still used method of motivating people. This method principle is based on threats and
punishment of employees. Individuals who work under pressure in order to avoid punishment
usually produce result at best. Similarly, the carrot-and-stick method presents a combination of
fear and incentive reward for good performance, punishment for bad.
When the motivation methods are converted into reality and the right motivators are searched,
some issues appear. There can be misunderstanding about what exactly can be the motivator
for a particular individual. Regarding that Price (2007) quoted Rynes, Gerard and Minette (2004)
who argue “that most surveys of motivating factors are misleading because employees tend to
give socially desirable responses that place pay well down in the list of motivation. They
consider that pay is the most important motivator and cite meta-analytic evidence”.
Torrington, Hall and Taylor (2008) provide a clear summary of motivation theories, their authors
and key factors that need to be taken into account, when motivating people:
“Importance of the work itself - Maslow (1943), Herzberg (1968) and Hackman and
Oldham (1976) underline the way in which individuals are motivated to seek and may
achieve satisfaction through their jobs.”
“Social needs are important - Maslow (1943), Mayo (1953) and McClelland (1971)
highlight the need for affiliation as a motivational factor.”
“Reward cannot be ignored – Maslow (1943) recognized the need to have sufficient
money for basic needs, and Herzberg (1968) suggests that whilst pay may not
motivate per se it does have the ability to demotivate if not sufficient.”
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“Expectancy has an impact on motivation – Vroom´s (1964) expectancy theory of
motivation recognizes that in the process of motivation the extent to which the
individual feels he or she can realistically achieve the target will have an influence on
whether he or she is motivated even to try, so policies which enable individuals to
agree targets would be appropriate.”
“Different people are motivated by different things – expectancy theory identifies that
different individuals value different thins and hence have different motivation needs.”
“Social context influence motivation – work in the area of motivation suggest that
motivation are socially or culturally determinate, and this reinforces the issues
identifies in the point above.”
“The influence of line manager is key – McGregor (1960) argued that workers were
basically motivated to be responsible and perform well. He suggested that is you
treat people as responsible and self-motivated then they will act in a responsible and
motivated manner.”
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2.6. Summary
The literature review provides a detailed insight of human resources development theories,
namely learning theories followed by training and motivation theories. Obviously, to be able to
meet all project objectives and aims, these findings need to be supplemented and supplied by
primary research, including of the following:
What is the current situation on the Prague tourism market, especially then in hotels.
Either from the top managers point of view and compared with the employees opinion.
Practice of HR experts in hotels or managers that are responsible for hiring and training
people are analyzed in detailed in order to provide a valuable overview of the HR
development situation in tourism in Prague.
The combination of these analyses helps us to understand the issues with a general view and
filled up the gap in relation to satisfying the objective of this research paper.
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3. Research Methodology
Research methodology concurs with the literature review. In order to select efficient methods of
gathering relevant data that are required to support this research paper and meet the objectives;
to be able to critically look upon the present situation of the issue of HR development in Prague.
The assimilation of both primary and secondary data has been required in order to prepare an
objective and beneficial analysis and consequently to comprehend the conclusion based on the
data from research taken. Before the primary sources are used, the equivalent research design
and methodology needs to be discussed.
3.1. Definitions and basic knowledge
There are a variety of research methods that may be used for research papers. The major
emphasis is placed on the fact that chosen research methods provide the data that best suits the
research within given limitations. The research methods´ reliability and validity is crucial
Before selecting the sufficient methodology for this research paper, a number of factors were
considered. As Polonsky and Waller (2004) suggested the following factors were taken into
account:
1) Validity – “the chosen method must provide data that will measure what needs to be
measure and provide a valid answer to the research problem”. A methodology should be
checked for internal validity and external validity.
2) Reliability - provided data must have consistent results, especially if there is its
interpretation. “Reliability can also be defined as the extent to which the measures are
free from random error”. The way how reliability may be assessed are “test-retest,
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alternative forms of the questions, and internal consistency in regard to how people
respond to related questions”.
3) Appropriateness – “the method must be appropriate in the context of the project
objectives”.
4) Amount of data – “the method chosen must provide enough quality data for there to be
sufficient analysis”. This factor usually varies in the case of qualitative and quantitative
data. Quantitative statistical tests may need approximately 30 responses, compared to
qualitative, descriptive statistics, which might work with over 100 responses. On the other
hand, personal in-depth interviews may need only two or three responds.
5) Flexibility – “the method chosen should match the degree of flexibility that is required in
terms of informational needs”.
6) Costs – the cost on the research should not exceed the budget for the project.
7) Time restraints – “the method chosen should allow to gather the data, analyze it, interpret
the findings, and write a report within the time frame”. Consequently, timing issues affect
the costing issues.
8) Potential for errors – there are numbers of potential errors that can affect the quality of
the research. The occurrence of errors depends on the samples that are chosen or how
the data are obtained.
9) Researcher´s ability – the chosen method has to be within the ability to be accomplished.
“The use of a detailed experiment might provide important data, but running the
experiment properly may be beyond the researcher current ability, or the data might not
be properly analyzed in the way it is required”.
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Based on all these factors, the research methods for this paper might be considered. First of all,
the data needs to be gathered based on the chosen research methods. Regarding Hussey and
Hussey (1997), data is “known facts or tings used as a basis for interference or researching”.
Jankowicz (2005) notice that “data are raw, specific, undigested and therefore largely
meaningless; information, in contrast, is what you get when data have been arranged in such a
way that uncertainty is lessened, queries resolved, and questions answered”.
There are two major sources of data: primary data and secondary data.
There is a distinguished difference between secondary and primary data. This research involves
a combination of both. Sharp and Howard (1996) point out, the limit of the rate at which data can
be gathered and easily analyzed are set up by processes by which data may be gathered and
recorded.
To difference between secondary and primary data is explained by Duffy (1999) as: “primary
sources are those which came into existence in the period under research”, compared to
secondary sources that “are interpretation of events of that period based on primary sources”.
Duffy (1999) also explained the difference between deliberate and inadvertent sources.
Deliberate sources are those that were produced in order to be used in the future research
process. On the other hand inadvertent sources are used by the researcher for different
purposes than the data were originally gathered. Such data may include national surveys,
government statistics or reports of working groups. Part of this research paper is based on data
from inadvertent sources in order to be able to analyze the situation in tourism on the Czech
market. The advantage of usage of inadvertent sources is that they are more valuable as a
source of evidence. Regarding the fact that data from such resources are gathered for specific
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contemporary purpose, and can not be the subject of manipulation or bias, the final analysis is
more credible and valuable.
3.2. Secondary data
Secondary data were researched as first, due to the fact that they provide background
information for the project, as Polonsky and Waller (2004) note.
Stewart and Kamins (1993) explain that: “secondary analysis is simply a further analysis of
information that has been already obtained. Such analysis may be related to original purpose for
which the data was collected, or it may address an issue quite different from that which
prompted the original data-gathering effort. It may involve the integration of information from
several sources or a reanalysis of data from a single source”.
Compared to Polonsky and Waller (2004) quotation; “secondary data is information that has
already been collected for some purpose other than the problem at hand (Malhotra et.al. 2002)”.
Jankowicz (2005) provides a good summary of the role of secondary data; “the balance of
primary and secondary data can make the difference between a good and a poor project. It
would be very unusual to find a good project with no reference to other people´s writing, whether
the references are presented as a formal separate literature review, or are interpreted among
your own material. Similarly, a project with no empirical content which you´d originated yourself
would be unlikely to be successful”.
According to Stewart et al. (1993), “more often, primary and secondary researches are used in a
complementary fashion, rather than as substitutes for one another. Research efforts generally
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begin with a question or set of objectives. These objectives are met and the question answered
through the acquisition of information. The source of the information – whether it is obtained by
secondary or primary research – is really not important as long as the information is trustworthy
and answer the question at hand”.
Secondary data are usually used as part of a case study or survey, but might also be use in
other research strategies such as action or archival research. Different researchers generated
various numbers of secondary data classifications, Saunders, Lewis and Thornhill (2007).
Secondary data might be divided to two groups internal and external.
The use of external secondary data for a business project includes industry figures that were
needed for this research paper. That is why; the secondary data from the external sources were
gathered at the initial stage of this research project. Namely, published material (conventional
library research) and computerized databases were used as source of data. Polonsky and
Waller (2004) highlight the advantage of computerized databases, regarding the fact that many
organizations prefer the usage of a computer or online database because it is more cost
effective and less time consuming.
On the other hand, the syndicated sources that are collected by market research companies in
order to “collate pools of data that can be purchased and utilized by other organizations”
Polonsky and Waller (2004) were not marked as suitable sources of data for this research paper.
The fact that they may have require extra expenses was the bottom line.
According to Saunders, Lewis and Thornhill (2007) the documentary secondary data that are
also used for this research paper, are usually used alongside the primary data. Such secondary
data includes written materials (notices, minutes of meetings, reports of shareholders, diaries,
and transcript of speeches or public records. “Written documents are used to provide
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quantitative data such as managers´ espoused reasons for decisions. They could also be used
to generate statistical measures such as data on absenteeism and profitability derived from
company records” (Saunders, Lewis and Thornhill, 2007).
Secondary data also include non-written materials such as voice and video recording, pictures,
movies or CD-ROMs. Such non-written secondary data are not used in this research paper,
seeing that accessibility of such data was complicated.
Academic sources and books covering the background of the travel industry and HR issues
become the basis of this part. As the next source, usage of government surveys and statistics
results ware helpful tools to discuss the current situation of unemployment / employment in
Prague. Additional and intrinsic secondary sources used for obtaining important data included
HR and business newspapers and magazines. Articles from the following sources that were
used focus on the particular issue and are influenced by the newest reality and situation on the
market.
Electronic research is a modern, highly efficient and every year more and more used method of
finding information gave me a chance for searching through a variety of statistics related
databases such as the Ministry for Regional Development, Czech Tourism or Czech Statistical
Office. This initially proved to be a good way of gathering relevant and up-to-date information.
The search yielded statistics including data of unemployment, employment in the Czech
Republic, composition of the labour market, situation in tourism from the business point of view.
Once the information was found, this proved to be a very successful research method.
Consequently, secondary research enabled achievement of the project objectives in several
ways.
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Saunders, Lewis and Thornhill, 2007, divide the secondary data to three subgroups;
documentary secondary data, which are used in this research paper, survey-based secondary
data and multiple-source secondary data.
Survey-based secondary provide already collected data based on survey strategy and that were
already analyzed for their original purpose. Such data would not be valuable to such research as
this one is, when the analyses have to be based on the current situation of the market and
especially new trends in HR. Generally said in the current situation, the kind of HR practices
(training and motivation) that were used by managers in 1999, they are probably not applicable
for employees nowadays. Due to this fact, new surveys interviews were needed for this paper´s
research purposes. More detailed information is discussed in the section of primary data
research, which is part of this methodology section.
Obviously, secondary data might have advantages as well as disadvantages.
Saunders, Lewis and Thornhill (2007) point out that the biggest advantage of secondary data is
the enormous savings in resources and consequently money and time. Larger amounts of data
may be analyzed from less accessible sources, such as government data. Due to the fact that
the data were already collected, the theoretical aims and substantive issues may be analyzed
more deeply, because of the saving of time and money. If the data for research needs to be
delivered quickly, secondary data are mostly the only alternative way to receive valuable data.
Generally, secondary data that were collected can provide comparative and contextual data.
This means that findings from ones own research can be placed within a more general context.
In other words, ones own findings may be generalized and compared with secondary data how
representative these data are of the total population (Saunders, Lewis and Thornhill, 2007).
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As publication from HNC/HND Business (2004) presents, the advantages of secondary data
over primary data that can be divided in accordance with factors that influence the efficiency of
the research into following subgroups:
- Cost-effectiveness – collecting data by me would be prohibitively expensive, and it
would mean that the amount of data researched would be limited and restricted.
Secondary data allows more information and analysis to be implemented in the final
research paper.
- Time – compared to primary data that are very time consuming, secondary data can be
obtained in a much shorter period of time. This means, that by usage of secondary data
for research, a wider range of data might be collected in a limited time period.
- Quality – the quality of secondary data, many are government statistics, are usually of
much higher quality than data collected by an individual. This is because, such an
organization has a wider range of resources or contact that has impact on the data
gathered.
- Discretion – as HNC/HND Business (2004) presents, “the use of secondary data within
an organizational context can be more discreet than the use of primary sta. It will not be
immediately obvious what you are researching, and will therefore be far less obstructive,
which may be of help if a sensitive topic is researched.”
- Use of benchmark – using a benchmark, when comparing secondary data with primary
is very helpful. In such cases ones own primary data may be put into context and
highlight any unexpected discrepancies.
- Unexpected discoveries – in some cases research discovery is presented as a result of
research into something completely different.
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- A permanent source of information – it is obvious that secondary data are permanent
and are available in an accessible form for researchers.
The reasons of selecting secondary data as one of the major source of data for this research
paper was also influenced by the advantages of secondary data that were referred by HNC/HND
Business (2004) in their publication; especially by cost, time and quality issues as well as the
fact that secondary data are a permanent source of information.
On the other hand the disadvantages are crucial. Regarding Saunders, Lewis and Thornhill
(2007), the most significant disadvantages of secondary data is the fact that they “may be
collected for a purpose that does not match the research need”. Data that have been collected
by me are with a specific purpose, to be able to answer the research questions and to meet the
research objectives. The existing secondary data may differ from the expectation and may not
answer the research questions. Consequently, such data would be inappropriate to the
research.
When such an issue with secondary data appears, an alternative source of data needs to be
found.
Regarding the publication from HNC/HND Business (2004), there are three factor representing
the disadvantage of secondary data; access, relevance and reliability.
“Where the original collector of the secondary data has incurred a lot of expense in gathering it,
it is less likely that they will provide it to you for free” (HNC/HND Business 2004). Much large-
scale market researchers are very costly and dependent on this they are not accessible to every
researcher. Relevance issues appear when the original data were collected for different
purposes, as Saunders, Lewis and Thornhill (2007) agree. The last important disadvantage
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along with the HNC/HND Business (2004) opinion, is reliability. The collector of given secondary
data can appear as irrelevant and unreliable. “The authority of the source of the secondary data
and the procedures used to produce the original data will need to be evaluated in order to
establish its credibility as a source of information for you (Denscombe, 1998)”, as HNC/HND
Business 2004 quote.
As Saunders, Lewis and Thornhill (2007) explain, “secondary data include both quantitative and
qualitative data, and they are used principally in both descriptive and explanatory research”.
3.3. Primary data
Primary data are usually evaluated right after the secondary data. First, there may be considered
qualitative data, “as this type of data can be relatively inexpensive to gather and can generate
valuable information“(Polonsky and Waller, 2004). Examples of how primary data are obtained
are: surveys, observational techniques or experiments.
In comparison with Jankowicz (2005), he divide available research methods to four major types:
“explicatory method” – in such cases, the questions are directed “at people and at written
sources, concerning issues and events in the past in order to understand the present and
predict the future, making judgments”.
“case-study method” – a variety of techniques in the workplace are used in order to
explore issues in the present and in the past.
“survey method” – questions are directed at a relatively large group people representing
large population, “in order to explore issues largely in the present”.
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“experimental method” – there are identified “the relative importance of one or more
variables in situations, where a focus on variables rather than issues makes sense”.
Bryman and Bell (2007) created summary of research design and consequently explained if
each of them is typical for obtaining quantitative or qualitative data.
Experimental – this form is typical for quantitative data.
Cross-sectional – this for is typical for quantitative as well as qualitative data.
Longitudinal – this for is typical for quantitative as well as qualitative data.
Case study -– this for is typical for quantitative as well as qualitative data.
Comparative – this for is typical for quantitative as well as qualitative data.
Some of these research designs are equal with the research methods pointed out by Jankowicz
(2005) or (Polonsky and Waller, 2004).
3.3.1. Observation method
One of the methods that cannot be used for this research paper is the observation method. Such
a method “involves observing and recording people´s actions and behaviors to certain stimuli or
situations” (Polonsky and Waller, 2004). Due to the lack of the possibility to observe one of the
top managers in training or motivating process of their employees, this method of gathering
primary data is inappropriate for this research paper.
3.3.2. Focus group
Another method which would not be appropriate for obtaining primary data for this research
paper is focus group. “Focus group interviews are a well known qualitative research technique
for collecting data. Among formal research techniques, it is also one of the least costly to
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implement” (Coldwell and Herbst, 2004). Due to the fact, that the top managers are quite busy
and there is a lack of free time in their schedule, primary data obtained in such a way were
unavailable to me.
3.3.3. In-depth interview
In fact, in-depth Interviews were considered as the basic one-to-one method for this research.
They might be either highly structured or unstructured. This kind of research technique allows
collecting data about “uncover underlying motivations, prejudices and attitudes that might not be
uncovered in the other primary data collection techniques” (Polonsky and Waller, 2004).
Comparing with Gill and Johnson (2002), they noticed that in-depth interviews may be used
“when the direct questioning method is not practical, and are uneconomical or is less precise
way for the researcher to obtain his/her data”.
3.3.4. Survey method
The survey method was also very important to this research paper, especially when the on-line
survey was used. Gill and Johnson (2002) notice, “survey research occupies a variable,
intermediate position somewhere between ethnography and experimental research. This is
because the form a survey takes differs considerably depending on the intentions and
dispositions of the researcher”. Some of the survey forms do not have to be necessarily
concerned with the development and testing of theory.
A descriptive survey was used for collecting the primary data for this research paper. “In contrast
to the analytic survey, a descriptive survey is concerned primarily with addressing the particular
characteristics of a specific population of subjects, either at a fixed point in time or at varying
times for comparative purpose” (Gill and Johnson, 2002).
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3.4. Research techniques and methods
Consequently the research techniques should be also described. Research techniques
according to Jankowicz (2005) are:
Semi-structures, open-ended techniques – the conversation, individual interview, and
focus group.
Fully structured techniques – the structured questionnaire, the structured face-to-face
interview, together with material on the Internet.
Additional techniques – the repertory grid, attitude scaling and observational techniques
or field experiment.
Jankowicz (2005) highlights the importance of the fact that the more structured techniques
should not be regarded “as better or in some way more scientific simply because they lend
themselves to quantitative analysis, or because many studies go from the qualitative to the
quantitative as understanding process”. On the other hand, when dealing with unstructured,
conversational interview techniques, Mishler (1991) makes the following point: “alternatives to
the standard approach, like unstructured interviewing, tend to be viewed as faulted variants …. I
am arguing, instead, that the standard survey interview is itself essentially faulted and that it
therefore cannot serve as the ideal ideological model against which to assess other
approaches”.
Generally said, there are several basic types of research that may be applicable when gathering
secondary or primary data so well. These types of research have to be taken into account, since
they give the face and final design of the research that is necessary for when this research
paper was written.
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The quantitative research method involves “relatively large number of respondents designed to
generate information that can be projected to the whole population” (Dillon, Madden and Firtle,
1993), quoted by Polonsky and Waller (2004). The main types of quantitative research methods
include surveys, observation and experimentation, Bryman and Bell (2007).
According to Kothari (2005); “quantitative research is based on the measurement of quantity or
amount.”
“Quantitative research generally involves the collection of primary data from large numbers of
individual units, frequently with the intention of projecting the results to a wider population
(Martins et al., 1996)”, Gill and Johnson (2002) quote.
On the other hand Kothari (2005) says that the qualitative research method “is concerned with
qualitative phenomenon, i.e., phenomena relating to or involving quality of kind”. An important
type of qualitative research is “Motivation research” that is based on investigating the reason of
human behavior. This type of research discovers the motives and desires by using in depth
interviews.
Gill and Johnson (2002) describe; “quantitative research allows in-depth analysis of problems,
opportunities and situations in the business environment and it has the advantage in some
instance of being less costly than quantitative research techniques for gathering data”. On the
other hand quantitative data do not always have to be specific.
Polonsky and Waller (2004) point out, that “qualitative research methods involve utilizing a
diverse range of data including the spoken and printed word, recorded sound and vision, and
images, forms and structures in various media”. Various analytical techniques must be used in
order to turn the quantitative data into meaningful data.
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The research might be descriptive or analytical (Kothari, 2005). Descriptive research includes
surveys and fact-finding enquiries of different kinds. The major purpose is description of the
state of affairs. The key characteristic is that the researcher has no control over the variables,
only reports can be made. On the other hand, in case of analytical research, the researcher
must analyze already existing data in order to make a critical evaluation of the material.
Regarding to Kothari (2005) opinion, research may be either applied (action) or fundamental
(to basic or pure). “Applied research aims at findings a solution for an immediate problem facing
a society or an industrial organization, whereas fundamental research is mainly concerned with
generalizations and with the formulation of a theory”. Examples of fundamental research are;
“research studies, concerning human behavior carried on with a view to make generalizations
about human behavior” (Kothari, 2005).
As Kothari (2005) explains, “conceptual research is tat related to some abstract ideas or
theory”. This type of research is usually used by philosophers in order to develop a new concept
or reinterpret the existing one. On the other hand, empirical research “relies on experience or
observation alone, often without due regard for system or theory” (Kothari, 2005). This type of
research may be also called experimental. The facts are needed in the first place. “Evidence
gathered through experiments or empirical studies is today considered to be the most powerful
support possible for a given hypotheses” (Kothari, 2005).
3.5. Sampling
One of the most useful research techniques in such a project as this is definitely sampling.
Generally said, sampling is used in the case when, there is no time or the possibility of reaching
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the entire population to prepare valuable research analyses. When collecting the data of all
research questions from the entire population, the sample technique is a must. “Occasionally, to
save time, questionnaires are used to collect data from the entire population but only a sample
of the data collected are analyzed” Saunders, Lewis and Thornhill (2007).
In the context of sampling techniques HNC/HND Business (2004) quote from Denscombe
(1998); “in practice, there are likely to be time and cost constraints that will make it difficult for
the researcher to gather information from every single person in the entire population being
researched. Therefore there is the need to rely on some form of sampling whereby a selection is
made from the population”.
Polonsky and Waller (2004) explain that sampling is used by a researcher because targeting the
whole population might be too expensive, too time-consuming, or just impossible to physically
undertake. Consequently, they say “if the sample is representative of the target population, then
there is no need to spend a lot of effort trying to undertake a census, as the increased numbers
would not increase the validity to any significant extent.”
According the Saunders, Lewis and Thornhill (2007), sampling provides a valid alternative to a
census when:
“it would be impracticable to survey the entire population;”
“the budget constrains prevent researcher from surveying the entire population;”
“the time constraints prevent researcher from surveying the entire population;”
the all data are already collected but the result is needed to be quickly done.
Gill and Johnson (2002) stress the importance of choosing the right sampling frame, “for
instance, where a sampling frames is unavailable, or where research is exploratory, researchers
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may decide to strategically select a sample based upon his/her judgment about the population of
interest, with a specific purpose in mind.”
The sampling techniques may be divided to two subgroups: non-probability and probability
sampling.
“Probability sampling is a sampling procedure in which each element of the population has the
same probabilistic change of being selected for the sample” Polonsky and Waller (2004).
Probability sampling techniques (Polonsky and Waller, 2004):
Simple random sampling – each member of the population has the same chance to be
selected. Every respondent is selected independently by a random procedure.
Systematic sampling – respondents are selected by a random starting point and
consequently every ith element is picked.
Stratified sampling – the population is split into subpopulations, or strata and after the
elements are selected by a random procedure.
Cluster sampling – at the first stage the population is “divided into mutually exclusive and
collectively exhaustive subpopulations called clusters and then a random sample of
clusters is selected based on a probability sampling technique such as simple random
sampling (Malhotra et al, 2002)”, as Polonsky and Waller (2004) quote.
On the other hand, Saunders, Lewis and Thornhill (2007) associate the probability sampling
“with survey and experimental research strategies”.
Probability sampling may be referred to as representative sampling because the result can be
generalized for the whole population, within a specific degree of confidence. Each member of
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the population should have an equal chance to be selected, in order to avoid bias (HNC/HND
Business 2004).
HNC/HND Business (2004) divides the probability sampling in the same way as Polonsky and
Waller, (2004) to the following subgroups: simple random sampling, systematic sampling,
stratified sampling and cluster sampling.
Saunders, Lewis and Thornhill (2007) also describe that for non-probability samples, “the
probability of each case being selected from the total population is not known and it is
impossible to answer research questions or to address objectives that require the researcher to
make statistical interfaces about the characteristics of the population.” Non-probability sampling
is usually adopted when a case study strategy is implemented in the research.
“Non-probability sampling is a technique that does not use chance selection procedures to
identify those who will participate; it relies on the personal judgment of the researcher to decide
who will be included in the sample” Polonsky and Waller (2004).
HNC/HND Business (2004) qualifies various reasons to use non-probability sampling:
“it is not feasible so select samples large enough”
“the population itself is difficult to define”
“there may be problems accessing all the people making up the sample”.
The key characteristic of non-probability sampling is the possibility to choose who or what can
be included in the research. “Non-probability techniques are usually associated with a
phenomenological approach” (HNC/HND Business 2004).
Gill and Johnson (2002) give notice, even “the non-probability sample will not be fully
representative, it will provide useful data from a sample judged to typical of, or at least provide
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some interesting insight into, the wider population according to some characteristics through to
be prevalent amongst sample members”.
Polonsky and Waller (2004) diagnose the following types of non-probability sampling:
convenience sampling (obtaining a sample of convenient respondents), judgmental sampling
(respondents are purposely selected based on the researcher’s judgment), quota sampling (at
the first stage, there are developed control categories or quotas of the population and followed
by the second stage when the samples are selected based on convenience or judgment) or
snowball sampling (an initial group of respondents are selected randomly and then subsequent
respondents are identified).
Similarly Saunders, Lewis and Thornhill (2007) provide a range of non-probability sample
techniques when the respondents are selected by the researcher is subjective judgment: quota
sampling, purposive sampling, snowball sampling, self-selection sampling and convenience
sampling.
As well, HNC/HND Business (2004) highlights the following sampling techniques as non-
probability: quota, purposive, snowball, self-selection and convenience sampling.
A comparing the probability and non-probability sampling techniques, it is obvious that non-
probability sampling techniques are more suitable for this research paper. The sampling frame
for this research paper was set up for top managers and HR managers in the hotel industry in
Prague. To avoid bias in the sampling frame, the verification if the top managers are currently in
the same positions was made. Obviously, there is no chance to be able to address the research
questionnaire to all top managers of hotels in the whole of Prague. Due to the limited amount of
contact, the right top managers who were asked to filled out the questionnaire needed to be pre-
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selected, that is why the judgmental sampling techniques, also the so called self-selection
sampling was used for this research.
The decision for choosing the non-probability sample technique was based on the need to obtain
a sample quickly and obtain a representative sample which would allow me to generalize in a
statistical sense to the population.
3.6. Summary
To clarify which research methods were used for this research paper, the summary below was
prepared.
Deep analyses of the market and the current situation in Prague were crucial. Without that the
final conclusion and discussion would be irrelevant. Data about the background of the market
was obtained from the secondary research and applied research methods. Such data directly
influenced the results. That is why the important information were specified and interpreted from
a number of magazines and publications, which were intended for specialists in the field. The
prime reason to support the result with data from this kind of secondary research was obvious.
Any important diversity in the research has impact on the way the final conclusion went. This is
the matter of such deep analysis that was held. To summarize these kinds of publications can be
challenging. Fundamental emphases were placed on business magazines, news from the
tourism and HR fields. Secondary data gave me lot of quantitative data used for this research
paper. The theory regarding the HR issues used the descriptive method, compared to the
analytical method that was used for the information about current situation on the market.
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To gather the primary data, the combination of explicatory research and survey method were
chosen, namely interview and on-line survey (questionnaire), supported by the given
questionnaire.
Table 3 shows the advantages and disadvantages of choosing these methods set up in
accordance with Polonsky and Waller (2004).
Advantages and disadvantages of interview and on-line survey Table 3
Criteria Interview On-line survey

(questionnaire)
Flexibility of data collection HIGH HIGH
Diversity of questions HIGH HIGH
Use of physical stimuli HIGH MEDIUM
Sample control MEDIUM MEDIUM
Control of data collection HIGH LOW
Control of field force MEDIUM HIGH
Quantity of data MEDIUM MEDIUM
Response rate HIGH LOW
Perceived anonymity of the respond LOW HIGH
Social desirability HIGH LOW
Obtaining sensitive information LOW HIGH
Potential for interviewer bias HIGH NONE
Speed HIGH EXTREME HIGH
Cost HIGH LOW
Polonsky and Waller (2004)
The prepared on-line questionnaires ware distributed to specialist or top managers in tourism in
Prague. The questions were posted on-line on Zoomerang website for 10 days. Subsequently,
direct web links were emailed to several top managers of Prague hotels and some of the travel
agencies also operating on the Prague market. The participants were asked to fill in the
questionnaires and consequently to submit it. The questionnaires were divided into four groups
depending on the hotel category and type of business. The content of all questionnaires was the
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same, but the purpose of the separation was obvious: to be able to discuss the differences
between 3* and 5* hotel or travel agencies (if there were any).
A total number of 11 questions were posted including the HR subject from the tourism point of
view. The layout of the questionnaire was easy flowing along all the questions and supported by
open ended, closed and quantity questions. Mostly the participants had the chance to select one
answer that described their situation as best as possible. The rest of the answers where based
on each particular participants own opinion. The names of the hotels and companies where the
participants work are listed in the table 4.
Primary data from the questionnaires obtained were processed by sampling method, more
carefully by non-probability, judgment (self selection) sampling method.
Summary of the participants Table 4
Name of the hotel / company Name Position
Hotel Fortuna Rhea Mr. Hanák Director of the hotel
Quality Hotel Praha Mr. Chmelař Director of the hotel

3*
Comfort Hotel Praha Mr. Puchinger Director of the hotel
Hotel Fortuna Luna Ms. Brutovská Director of the hotel
UBX Praha Mr. Hrabouch ?
Clarion Hotel Prague Old Town Ms. Žáková Director of the hotel
Clarion Congress Hotel Prague Mr. Dobešová HR manager
4* Hotel Roma General director
Accor Ms. Nová Leisure and sales
manager
Hotel Jalta Ms. Františáková Sales manager
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Name of the hotel / company Name Position
Mövenpick Prague Mrs. Nešvarová Rooms division

4*
manager
K + K Hotels Mr. John General manager
Hotel Perla Mr. Startl General director
Buddha-Bar Hotel Prague Ms. Fajčíková Director of the hotel
President Hotel Prague Ms. Žlebková DOSM
Prague Imperial Hotel Ms. Nováková DOSM
Hotel Aria Mr. Jurcik General manager

5*
Crowne Plaza Prague Castle Ms. Telyčková Revenue &
reservation manager
Radison Sas Alcron Mr. Chour General director
Iron Gate Hotel & Suites Mr. Korta DOSM
Ambasador Zlatá Husa Mrs. Dytrychová Rooms division
manager
OTUS s.r.o. Mr. Novák Director

travel
IVAN ČÍLA Mr. Svoboda Director of Sales
agency
JEROME TRAVEL, s.r.o. Ms. Eliášová Director of Sales
Table 5 provides the questions that have been used for the on-line questionnaire.
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Translation of the questions Table 5
1. What is the name of the company / hotel?
2. How many employees has your hotel / company?
3. Are all the positions in your hotel / company occupied?
4. Do you think it is hard to find new, qualified employees these days?
5. According to your opinion, what is the reason for the low level of qualified applicants for a
job?
6. How do you select your employees?
7. What qualities do you miss in current applicants for a job?
8. What benefit is the most important for employees in your company / hotel?
9. Do you think that it is possible to work with unqualified employees and consequently help
them to become to a full-value team member?
10. If yes, how?
11. Dou you think that it is easier to find a new employee for more luxurious hotels then for 2*
or 3*? (This question was used only in case of the hotels, excluding the travel agencies).
12. Why? (This question was use only in case of the hotels, excluding the travel agencies).
The reason why these particular questions have been selected is clear. The result tells us more
about the current situation in tourism from the hotels managers’ point of view. Based on the
questions analysis, the conclusion of the Prague market can be seriously prepared.
Also the question about the employees´ benefits will be easily comparable with the opinions of
employees and what they think about the benefits offered.
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There may be also many brilliant ideas that may be applied to other hotels or for tourism in
general. Based on this questionnaire, a second expletory questionnaire has been created in
order to also get the reverse side of this issue, strictly speaking from the employees’ point of
view.
A numbers of employees from one of the most luxurious hotel in Prague have been polled by
following questions in table 6.
1. Gender.
2. Age.
3. How long have been in this position in this particular hotel?
4. What kind of benefits does your employer provide you with?
5. Which one of these is the most beneficial to you?
6. Which one of these is the least beneficial to you?
7. Have you been trained when starting to work on your new position?
8. Would you welcome the opportunity to be trained on a regular basis?
9. Are you currently motivated in your position sufficiently?
10. What is the most motivating to you in order to provide higher work performance?
By analyzing these questions, the conclusion may be compared with the top managers’ point of
view. Regarding that, there may be very interesting and often surprising diversity between those
insights.
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In-Depth Interview was considered as the basic one-to-one method for this research. The semi-
structured technique was used to collect valuable data. It gave me the chance to also gain
quantitative data.
The participants of the interviews are namely presented in table 7.
Summary of the participants Table 7
Name of the hotel Position of the participant Name of the participant
CPI Hotels HR Director Anna Kulíková
987 Hotel Sales & Marketing Manager Kateřina Dvořáková
Hotel Paříž Sales & Marketing Manager Lenka Valová
Design Hotel Metropol Director of the hotel Radek Dušek
Buddha-Bar Hotel Director of the hotel Veronika Fajčíková
Prague
In total, five managers working in different types of hotels have been asked the same questions
that have impact on HR development, in order to receive valuable information about the
methods that are used in real life and may be otherwise improved.
The interview participants have been interviewed separately and in distinct timing and locality.
Table 8 represents the open-questions that have been employed in the interviews. Nevertheless,
even the interview was more likely based on open-questions, strict boundaries have to be set up
when designing the semi-structured interview to ensure that all questions are relevant and all
research objectives have been met.
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1. Do you train your employees?
2. If yes, how?
3. How often do you train your employees?
4. Do you believe that more training would be needed for your employees?
5. What limits the training frequency in your company?
6. Do you have a benefits program for your employees?
7. What kind of benefits do you use in particular?
8. What would you like to put through as a new benefit in your company?
9. How do you motivate your employees? Only by benefits?
10. How do you think such motivation is perceived by the employees?
11. How would you improve the relationship between employer and its employees?
12. Would you like to add some important points to this subject?
By answering and analyzing these questions, the research objectives and aims may be
completed and finalized.
To sum-up, the mentioned methods of obtaining primary data, allowed me to gather qualitative,
quantitative data by the usage of fundamental and empirical research methods.
The subsequent chapter is based on analysis presented in chapters two and three of this
research paper. All necessary factors have been considered in order to provide sufficient data
analysis. Many different insights enabled me to conduct a general viewpoint of the topic.
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On the other side, the existence of divergence and mistakes in the surveys´ or interviews´
responses has been in my mind during the whole period when this research was undertaken
have been taken into account.
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4. Analysis
4.1. Methods of analysis
In sequence with the literature review and research methodology, the methods of analysis
should be also considered. Before the data have been collected, information was required in
order to drive the valuable and appropriate conclusion. All necessary data have been gathered
in a suitable way and manner.
Before analysis, data must be prepared for analysis by means such as data coding.
As Tukey (1977) advises, in the initial stage the exploratory data analysis approach should be
used (Sauders, Lewis and Thornhill, 2004). Such an approach places emphasis on diagrams or
visual tools in order to understand the data that have been gathered. This kind of method of
analysis has been used to a large degree in this research paper. Exploratory data analysis
allows on flexibility to use initially unplanned analysis in order to respond to new findings.
Since most of the research methods used for this research paper are looking for qualitative data,
the approaches to analysing quantitative data shall be consulted. There are three major
approaches (HNC/HND Business, 2004):
Deductive
Inductive
Quantification
In the case of the deductive approach, existing theories are used in order to analyse data. The
inductive approach is focused on development of personal theories in order to analyse data. On
the other hand, quantification is based on quantitative data that are placed into categories. In
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other words such data may not be counted. Quantification can complement the principal
methods of analysis.
I have also counted on the possibility of missing data, when the respondents do not answer all
the questions, because of the following reasons (HNC/HND Business, 2004):
The questions are not applicable to the respondent
The respondent are not willing to answer the particular question
The respondent is unable to answer the question
The respondent omitted the questions (in error)
Firstly the framework of the analysis must be set up. The gathered data should be categorized,
then unitized with the relationship identified and finally the theories may be developed.
The findings presented in this chapter will respond to theories and methods included in chapters
2 and 3. Comparison is used as a powerful tool in order to show any contradictions or anomalies
in the situation on the market.
Firstly the findings from secondary research are analyzed, due to the fact that such data provide
background information for the project, which is needed (Polonsky and Waller, 2004). The
market background is discussed as well as the importance of HR. Consequently the data from
primary research are considered. The on-line surveys are analyzed and followed up by analyses
of questionnaire and semi-structured interviews.
Most of the finding are statistically presented and described.
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4.2. Market background
With reference to first and second objectives, the market background is provided. This section
also helps to understand the impact of external factors on any company operating in tourism.
4.2.1. Development since 1990
The fastest and most viewable economic progress on the Czech market appeared after the long
era of communism fell. Since 1990, the Czech country has become more and more interesting to
potential visitors from the whole world. The situation for managers in tourism in the Czech
Republic in the 90´s was apparently quite different than it is these days. The major reason was
obvious; the market was not expensive and hungry for new original improvements and products.
Travellers from abroad were curious and willing to spend their money here in Czechia; especially
in the capital city Prague.
In 2008, the situation changed rapidly. The Czech economy strengthened by grand speed every
month. The Czech country became more expensive to travellers then it used to be. Businesses
operating on this market needed to improve the quality of their offers. Travellers expect a higher
level of services as their vacation costs more. Even though the market follows the trend in
western countries and many companies switch their objectives and focus on services, the
success cannot be managed without good human relations and a quality workforce.
In 2009, the situation on the Prague market differs in comparison with the previous year. The
economic situation and crisis has hit the tourism in Prague heavily. Even the currency exchange
rate difference has already stagnated, tourists are not interested in coming to Prague because of
lack of money. Maslow´s hierarchy of needs is the primary theory that obtains in such cases.
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When people do not have so much money, they need to satisfy their basic human needs and
other levels of hierarchy are irrelevant at that time.
4.2.2. Current situation on Prague market
The place where the travellers are centralized in the Czech Republic in particular is definitely
Prague, the percentage is approximately 57,5 % (CSU, 2008). Compared with the other regions,
Prague has the strongest position within the Czech Republic. According to information published
in the magazine PROFIT, the popularity of a single area in Czechia differs in dependence on the
number of attractions, historical monuments and interesting points.
The greatest prime of the tourism in the Czech Republic started more than five years ago. At
that time the level of tourists grew by 20% each year. This progress of “incoming” was logical
due to the Czech know how advantage. The Czech area was unknown and relatively cheap for
foreigners. This potential source has been slowly exhausted. Consequently Czech currency
strengthened. Cheaper, uncommon and worn-out eastern competition slides the position of our
country to a sharper western market full of stronger competitors. Tourist inflows in the last year
expressively slowed down. In 2006, 6,4 millions of tourists travelled into the Czech country,
which means only about 1,6% more than in 2005 (CSU, 2009).
This year, the number of visitors staying overnight decreased by 8,7%. Incoming tourism fell by
17,1% (7,3 million) in the first quarter of this year (CSU, 2009). The decline of visitors was noted
especially in 4 and 5 star hotels in Prague. Numerically it was 19,2 % for 4 star and 11,6% for 5
star hotels (CSU, 2009).
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Even though, in 2007, the number of regular travellers coming back into the Czech Republic had
growing potential, percentagewise it was already almost 40% (Czech travelogue, 6/2007, p.24)
the drop-off this year has been rapid and devastating for some hoteliers.
In the first quarter of 2009, the revenue from tourism in the Czech Republic was 28,550 billion
CZK, compared to 30, 717 billion CZK in the first quarter in 2008. On the other hand, expenses
have increased from 17,468 billion CZK (2008) to 17,965 billion CZK this year. These figures
may be very alarming to hoteliers (CSU, 2009).
Also the services offered to travellers have a strong impact on the Prague visit rate. Hoteliers
need to be aware that one thing is higher prices but another can be unsatisfactory service that is
not equal the expenses. Many foreign travellers complain about the insufficient and bad service
they received. This fact can measurably influence the following travellers’ selection of a future
destination where they would like to go. An unpleasant experience can discourage tourists from
repeat visits to Prague.
Currently hotels and accommodation facilities are dealing with a formidable situation. The total
number of hotel units increase rapidly. Many investors are focussing on developing new
accommodation spaces including conference facilities, even as the crisis is hitting tourism in the
Czech Republic really heavily. The issue, which appears is that it is seems as offer is superior to
demand on the Prague market. Any company operating on the tourist market needs to progress
to be successful, this brings a demand on financial support. The economic factor also influences
how easy or complicated the process of dealing with competition will be. To be able to stay
competitive towards rivals, the hoteliers need to keep their operational units updated (interiors as
well as exteriors). This process can be extremely expensive and time consuming.
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4.2.3. Competition in Prague
The situation of competition on the Prague market has been already lightly touched in the
previous section of this research paper. It is obvious that competition in Prague has reached an
undesirable height and consequently the fluctuation of employees goes along with this business
issue. The number of accommodation facilities grows year by year. The forecast from the
specialists’ point of view tells us that this trend will probably not be the same in the coming
years, because of the crisis.
It can be predicted that the number of hotels will decrease, because the smallest hotels will be
compelled to close, since strong companies are not behind them so the assets are not available
to them. It is clear, that the Prague market is not “inflatable” so such accommodation
development needs to stop. The growth of competition is already unmaintainable and the
pressure on prices and services demand also devastates many businesses.
Exact numbers of all categories of accommodation in Prague are specified in chart 1.
Number of accommodation facilities in Prague Chart 1
207
156
129
76
37 44
14 24 20
2
(Source: CSU, 2009)
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4.3. Human Resources
4.3.1. Importance of HR
Human resources are crucial segments in Prague and indispensable in tourism. As the whole
tourist industry is based on human potential and services, the selection of good employees is
decisive. HR is not only the primary selection of good applicants. Human resources have
strategic position in business. Employees need to be trained and treated by their employers. HR
directors and managers are responsible for dealing with human potential on the market and
employees of their companies. Consequently the growth of the company also needs to be
managed. Companies operating in services are very familiar with the fact their development is a
subject that increases in internal capabilities. Employees´ knowledge and skills are currently
more important factors than the number of employees itself. It may happen that a company does
not develop as fast as it could due to the lack of valuable human resources. Recently, it has
been very common especially in services. The task for HR specialists also is to create a
motivational plan for employees to be able to retain qualified employees within the company who
will help to achieve the prosperity of the companies.
4.3.2. Situation with unemployment / employment in Prague
The labour-hunger in this town is huge. The social-survey demonstrates these conditions very
clearly. Presently, the possibility of a nice comparison between 2008 and 2009 appears.
In 2008, unemployment in the Czech Republic fell to a low level, only 5% of inhabitants were
jobless (MPSV, 2009). Unemployment in 2009 is slowly increasing again. In fact, hotels fumble
with the economic crisis, which influences the level of unemployment in the Czech Republic.
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There is a significant difference between 2008 and 2009. The greatest issue in 2008 was to find
qualified employees; in the case of a good applicant for the job, he/she usually had excessive
demands and that was unacceptable for the hotels´ managers. In 2008, many companies that
were aware of the lack of qualified labor admitted that salaries for employees had to definitely
increase to motivate them. Also many benefits programs were prepared and offered by
employers, as that was the most effective tool of motivating and keeping good employees within
a company.
The situation in 2009 is antipodes. There may be more qualified employees available, but just
because it is hard to find a job for them. The managers would be delighted to hire such qualified
applicants, but they do not have budget or money to venture on such applicant. These days, the
biggest motivation for many employees is keeping their current jobs and have at least some
monthly income. Due to the fact, that the rate of unemployment is growing rapidly, such an
attitude is natural and expected.
The progress of unemployment from 1995 to 6/2009 in the Czech Republic is presented in the
chart 2.
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Progress of the rate of unemployment in 1995 - 2009 in the Czech Republic Chart 2
rate of unemployment in CZ
12,0%
10,0%
8,0%
6,0%
4,0%
2,0%
0,0%
XII.97
VII.98
XII.04
VII.05
II.99
II.06
VIII.95
VIII.02
III.96
X.96
V.97
III.03
X.03
V.04
IX.99
IX.06
XI.07
IV.00
XI.00
VI.01
IV.07
VI.08
I.95
I.02
I.09
(Source: MPSV, 2009)
The highest level of unemployment in the Czech Republic was in February 2004 with the rate
was 10, 9%. On the other side the lowest unemployment rate was 2, 7% in May and June 1996
(MPSV, 2009). There could be many factors which influenced the rate of progress. It seem like
governmental structural changes have a major impact on the level of unemployment. Also
economic development goes along with employment. Consequently when the Czech economy
grow, due to many investors coming to Czechia to operate many businesses here, the level of
unemployment started to slowly decrease. Currently the rate of unemployment is about 8% with
43 402 unoccupied jobs and 463 555 applicants jobless (CSU, 2008) Chart 3 shows the
comparison between 2008 and 2009.
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Progress of the rate jobs offers on the market Chart 3
500 000
450 000
400 000
350 000
300 000
250 000 no. of unoccupied jobs
200 000 no. of applicants jobless

150 000
100 000
50 000
0
I.06 I.07 I.08 I.09
Such a drop of unoccupied jobs in the Czech Republic is the biggest since 2004, when the value
was similar to the current one. Nowadays, the gap between number of applicants and positions
that are not occupied has an increasing tendency. It is predicable that this trend is not going to
stop as the crisis is not over yet.
The situation of unemployment in Prague differs from the nationwide average. The present
number 3% shows a really competitive market such as Prague is (MPSV, 2009). Chart 4
presents the progress of the rate of unemployment in Prague.
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Progress of the rate of unemployment in 2004 - 2009 in Prague Chart 4
rate of unemployment in Prague

4,0%
3,5%
3,0%
2,5%
2,0%
1,5%
1,0%
0,5%
0,0%
The rate again has an increasing tendency. In contrast with the increasing number of hotel
facilities in Prague, the forecast for the managers may be better than a year ago, when
unemployment in Prague was really low, in numbers only 2% of inhabitants were looking for a
job.
It is already perceptible that in certain positions those that are not too challenging and based on
specialization, the level of foreign employees increases.
The current situation on the Prague market from the hotel´ managers point of view is more
deeply discussed in the following section of this report 4.3 Analysis of survey.
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4.4. Survey analysis
This section of the report deeply analyzes each particular question used for the research and the
answers that were gained. The following responds are presented as non-probability sample.
The reason why responses are analyzed this way is that it is hard to define the whole population,
selecting a sample which would be large enough is not feasible and the access to all potential
respondents is impracticable (HNC/HND Business, 2004).
As Gill and Johnson (2002) highlight “the non-probability sample will not be fully representative,
it will provide useful data from a sample judged to typical of, or at least provide some interesting
insight into, the wider population according to some characteristics through to be prevalent
amongst sample members”.
2. How many employees has your hotel / company?

Result Chart 5
100%
78% 75%
57%
43%
22% 25%
up to 50 up to 500 up to 50 up to 500 up to 50 up to 500 up to 50
5* Hotels 4* Hotels 3* Hotels Travel

Agencies
It is evident that more luxurious hotels have more employees compared to 3* hotels. The reason
could be due to the higher demand of services in 5* hotels or the fact that more luxurious hotels
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are usually part of some international or national chain with a wider background and longer
history, consequently the higher number of employees.
In the case of travel agencies, the number of employees is usually low. Only several travel
agencies have more than 50 employees e.g. Čedok or Fisher (with very long histories in the
Czech Republic).
3. Are all the positions in your hotel / company occupied?

Result Chart 6
75%
56%
57%
44% 67%
43% 33%
25%
NO
5* Hotels YES
4* Hotels
3* Hotels
Travel
Agencies
5* Hotels 4* Hotels 3* Hotels Travel Agencies

YES 44% 43% 25% 67%
NO 56% 57% 75% 33%
More than 50% of respondents admit a lack of employees in their businesses. Especially 3*
hotels deal with the low rate of employment. There is the question, what is the source of this
issue? Maybe the lower category hotels are not interesting for applicants. The salaries could be
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lower, the reputation or name of the hotel can also be good reasons or basic treatment can
cause that applicants give precedence higher quality of hotel.
It should be also mentioned that 5* hotels are more likely to be supported by a huge corporation
and it can give the “spirit” of the position in this kind of hotel. The confidence that ensues from
this fact can be decisive for the potential employees.
On the other hand, travel agencies that are smaller are more satisfied with their position
occupancy with more then 60% of respondents.
4. Do you think it is hard to find new, qualified employees these days?

Result Chart 7
100%
89% 100%
100%
11%
0%
0%
0%
NO
5* Hotels YES
4* Hotels
3* Hotels
Travel Agencies

YES 89% 100% 100% 100%
NO 11% 0% 0% 0%
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Almost all of the survey participants
agreed that it is hard to find new and
mainly, qualified employees in
Prague these days. The lack of 97,25%

YES
qualified applicants affects all
NO
2,75%
businesses with no limits and no
exception, no matter which category
the hotel is in.
Result Chart 8
5. According to your opinion, what is the reason for the low level of qualified
applicants for a job?
Result Chart 9
physical and psychical demand

factor
insufficient financial assessment

(salary)
7% 5% 5%
leaving for job abroad
24%
31% lack of interest Y generation in this

business segment / job in services
16%
high competition / wide offer of
12% jobs / low rate of unemployment
insufficient cooperation between

hotels and schools / unsatisfactory
preparation for future job
high demand from the side of
applicants
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The prime reason for the low level of qualified applicants for a job is the high level of
competition. 31% of participants concede that the wide offer of jobs and the low rate of
unemployment in Prague is the crucial issue that impacts their businesses. In total 13
respondents mark this answer as the priority answer.
The second most important factor with 24% is the insufficient financial assessment. Even though
managers are aware of low wages in tourism, no evidence of rising employees´ salaries is
visible or apparent.
6. How do you select your employees?

Result Chart 10
Others Recommendation
4% 3%
Internal Sources
37%
Advertising
49%
Recruitment
Agencies
7%
Most of the companies asked use advertising as a promotional tool for unoccupied positions
within the firm. About 49% respondents agree that this is the most powerful tool when searching
for new applicants. On the other hand, maybe this is the reason why companies have to deal
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with the lack of employees. Too uniform a style of searching can affect the final result.
Companies could be more innovative and try to find different ways how to look for new
applicants.
The second most used choice was the internal sources, marked by 37% of participants. This tool
is logical and I would say also powerful. Since the company already knows the employee very
well which consequently provides loyalty and a valuable applicant, then the selection can be an
easier process for both sides. Any initial training or familiarization with the company can be
skipped. This solution is less time and money consuming for the company but from the other
perspective, this does not avoid the demand for new employees, because the employee´s
previous position needs to be filled.
7. What qualities do you miss in current applicants for a job?

Result Chart 11
others general / basic

11% knowledge language knowledge
7% 7%
motivation
11%
loyalty
21%
flexibility /
willingness /
diligence
18%
discipline /
knowledge / responsibility
experiences on the 11%
field
14%
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The percentage of the answers to this question is almost equal. 21% respondees miss loyalty
by the current applicants for a job; next 18 % agree that current applicants are not flexible, not
willing and not diligent. In the case of tourism which is based on services provided, this applicant
limitation can be damaging for the company. Hiring such employee is reasonless.
8. What benefit is the most important for employees in your company / hotel?
Result Chart 12
3% salary
3% 3%
3%
3% profession growth
3%
good facilities / treatment
6%
49% food tickets / boarding
training
reputation of the company
12%
holidays
stability
15% dynamic of the company

the possibility of accommodation
Almost half of the participants stated that salary is the most important benefit for their
employees.
5* hotels assumed the following sequence: bonuses (5 respondents), profession growth (3),
salary (2), food tickets / boarding (2), training (1) and good facilities / treatment (1).
4* marked as below: salary (3), bonuses (2), 13. wages (2) and holidays (1).
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3* thought that the most important bonuses are as following: profession growth (2), stability
(1), salary (1), dynamic of the company (1) and the possibility of accommodation (1).
9. Do you think that it is possible to work with unqualified employees and

consequently help them to become full-value team member?
Result Chart 13
100%
100%
67% 75%
33%
0% 25%
0%
NO
5* Hotels YES
4* Hotels
3* Hotels
Travel Agencies

YES 100% 100% 67% 75%
NO 0% 0% 33% 25%
All of the respondents operating in 5* and 4* hotels believe that unqualified employees can
become full-value team members. On the other side 3* hotels are more pessimistic and maybe
realistic. The reason can be the higher level of experience in this issue. From the questionnaires
it is obvious that lower category hotels face more likely and closer issues with unemployment.
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The final result of this question is presented in chart 14. In total 85,5% of respondents think that
it is possible to work with unqualified employees and consequently help them to become full-
value team members.
Result Chart 14
85,50% 14,50% YES

NO
10. If yes, how?

Result Chart 15
motivation
11% 11%
8% courses (languages, IT, communication
13% etc…)
external / internal training
5%
initial / adaptation process
11%
41% supervision from seniors side
others
well balanced team by experienced and

qualified colleagues
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Chart 15 presents the possibilities of how the employees’ knowledge can be improved. The most
used tool is external / internal training, which covers more than 41% of responses.
11. Dou you think that it is easier to find a new employee for more luxurious hotels
then for 2* or 3*? (This question was used only in case of the hotels, excluding the
travel agencies).
Result Chart 16
67%
71%
100%
33%
29%
0%
NO
5* Hotels YES
4* Hotels
3* Hotels
5* Hotels 4* Hotels 3* Hotels

YES 33% 29% 100%
NO 67% 71% 0%
Lower category hotels maintain that it is easier to find new employees but this opinion can be
mistaken due to the lack of experience in this field. It also needs to be noted that even the
applicant can be more interested in the more luxurious hotels, the demand for any position in 5*
hotels is huge and more complex than in the case of 3* hotels.
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In reality, the applicants´ interest in more luxurious hotels does not signify that the process of
finding new employees is simplified. Most of the applicants can be no unacceptable for the hotel
based on many factors e.g. language skills, professional, behavior …
5* or 4* hotels need to keep their standards and cannot deviate in staff selection, as long as the
name and reputation of the company or hotel could be damaged.
12. Why? (This question was used only in case of the hotels, excluding the travel
agencies).
The subsequent list mirrors the opinion of managers from mostly 3* hotels, so the final result can
be again out of focus.
YES  greater possibility of profession growth

 higher prestige
 higher salaries / benefits
 better working conditions / facilities
 less complaining guests
NO
 higher quantitative demands
 more strict standards
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4.5. Questionnaire analysis
Questionnaire analysis has been prepared in order to obtain the employees´ insights on this HR
issue and mainly to objectively analyze the situation. The answers gave us more likely
qualitative data which have been easily comparable with the opinion of employers.
This second expletory questionnaire was created in order to also get the reverse side of this
issue, strictly speaking from the employees’ point of view.
In particular 20 employees from one of the most luxurious hotels in Prague were asked to fill in
the prepared questionnaire. 13 women and 7 men took part in this research. Almost 50% of the
polled employees are younger than 30 years old, only one man is older than 50. To summarize,
almost all participants are in the middle, productive age.
Result Chart 17
45 % of participants occupied a Participants

position at the reception, another 45
% work in managers´ positions in

45% 45%
back offices and the rest of
10%
respondents have been hired in F&B
positions.
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3. How long have been in this position in this particular hotel?
Result Chart 18
More than half of the participants have less than 1 year 1 - 5 years over 5 years
worked in their current position more the
one year but no longer then 5 years. It is 10%

35%
interesting, that more the 35% were hired
55%
for this position less than a year ago. The
high level of labor turnover is evident.
4. What kind of benefits does your employer provide you with?
Result Chart 19
food tickets / staff meal
massages
24% 30%
languages
18% Flexi pass

5%
8%
8% 3%
none
retirement and life insurance
free or discounted accommodation within the

whole "family" organization
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The high level of turnover mentioned in the previous question, may be due to the deficit of a
benefits program within the company. The participants were asked which particular benefits are
offered to them. The results showed that, there are three major benefits, namely then: food
tickets / meal, free or discounted accommodation within the whole “family” organization
(subordinate hotels) and retirement and life insurance. For 8% of employees these benefits are
not available. It may predicate that the length of these employees´ employment is less than 3
months. It is common sense that the employees within a company that have less than 3 months
employment are not allowed to profit from these benefits.
5. Which one of these is the most beneficial to you?
Result Chart 20
massages
6% money
6%
31% 6%
none
13%
languages
13%
18% free or discounted accommodation within the
whole "family" organization
food tickets / staff meal
retirement and life insurance
The most beneficial element perceived by employees are food tickets / staff meal and retirement
and life insurance or free or discounted accommodation within the whole “family” organization.
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6. Which one of these is the least beneficial to you?
Result Chart 21
no respond Flexi pass food tickets / staff meal none
25%
10%
60%
5%
Most of the participants did not answer this question and left it blank. It may signify that all of the
benefits are reasonable for the employees. However, it seems likely that the employees lay
great store upon anything that is free and beyond. No specific interests in the offered benefits
are evident.
7. Have you been trained when starting to work on your new position?
Result Chart 22
Most of the employees were trained when
hired for their new position.
25%
75%
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8. Would you welcome the opportunity to be trained on a regular basis?
Result Chart 23
More than three quarters agreed on

15%
training on a regular basis. This finding has
85%
been also supplied by the managers´ point
of view.
9. Are you currently motivated in your position sufficiently?
Result Chart 24
It is alarming that more than half of the
employees are currently unsatisfied in their
job in the particular company. There may be

45%
55% many reasons why it is that. One of them
could be an ineffective motivational plan.
Also the benefits provided by employees are
probably not satisfactory. The next coming
question in the questionnaire may help us to
find what factors may motivate the employees.
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10. What is the most motivating to you in order to provide higher work performance?
Result Chart 25
benefits
2% 2%
more days off
6%
35% 12%
personal growth
12% positive verbal appraisal
18% others
17%
results, feedbacks, prosperity
working environment
money + bonuses
Based on this question, there is obvious misunderstanding between employees and employers
about what an effective benefit program should be. The employees are provided with some
benefits that they accept. However they are not motivated by them in order to provide higher
work performance. As visible in the Chart 25, not only money or bonuses are the most
demanded benefits. Even very a “low cost” benefit as positive verbal appraisal may be extremely
effective. 12% of respondees would be grateful for respect and appreciation from their
employers.
There is clear evidence, that financial benefits are still the greatest motivators for the employees.
More than a third of participants stated this benefit as the most important.
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4.6. Semi-structured Interviews analysis
The prepared semi-structured interviews have provided me a greater level of qualitative data
and mirror some of the opinions and insights that were gathered from the survey analysis. The
HR issue has been explored in more detailed compared to the online survey analysis. New ideas
of motivating and training people have supplied the final look at the whole issue.
The sampling method, as discussed in the section 3.5. of this research paper, has been used
along with these semi-structures interviews.
There were 12 clear questions put to 5 managers working in top positions in hotels in Prague. In
contrast to the employees´ opinion, the managers´ responses have also been compared. They
may be a huge gap in the diversity of what the employees think what is the best for them and
what the employers´ believe that the employees need.
Data indicated that all the employers or managers train their employees, either regularly or only
one time. The methods used for training are mostly very similar. Now originality is in evidence.
The managers always prefer more informal training methods, mostly than outdoor teambuilding,
which:
“lighten the relationship between all employees and supervisors”, (Interview participants, 2009).
Concurrently, formal training such as lectures is also used very often, especially when technical
skills or communication skills are needed. 100% of managers asked agreed that more regular
training is mandatory. In comparison with the employees’ opinion, they also noted that training
should be more often and ideally on a regular basis.
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However, there are limitations to regular training. In regards, Kusluvan (2003) highlighted the
barriers of valuable training: a lack of time, high employee turnover, high business demands,
cost and a lack of training resources. Respondees almost in one voice stated the same
limitations as Kusluvan. Currently, money, time and people are the three major factors that limit
the frequency and quality of the training.
All interview participants agreed that they offer a special benefits program for their employees.
Accessibility to this program depends on the length of employment of each particular employee.
The most widely used benefits within companies are: food tickets / meal, retirement and life
insurance, language education. Bigger organizations also allow their employees to be
accommodated in one of their properties free of charge. Interestingly the benefit of commission
based on selling is hardly used. Indeed, this benefit may be applicable only for the first line of
employees that have the impact on the guests´ decision. In summary, there are still almost the
same benefits in every single company, no originality appears. On the other hand, the benefits
are again just about money. If the company is willing to invest in their employees the selection of
benefits may be on a wider and larger scale.
Consequently, the managers stated that the improvement in the development of the benefits
program, in case the limitation is avoided. One of the participants put the effort to boost mainly
the benefits that imply employees´ relaxation, more preciously a fifth week of vacation per year
or 13th and 14th salaries. To be honest, this proposal would be more than generous and could be
economically dangerous for the company. Other participants suggested implementing special
vouchers for cultural events, entertainment or gift vouchers.
The issue of motivating employees is not only based on benefits programs. There may be many
ways how to motivate employees. Regarding Maslow´s Hierarchy of needs theory, “there are
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five needs systems that account for most of our behavior. He placed these in a hierarchy ranging
from the most primitive and innovative in terms of the behavior they promote to the most mature,
These needs systems range from the physiological or more primitive factors, to safety,
belonging, ego-status, and self-actualization needs in that order” (Montana and Charnov,2000).
It arises from the research that managers are mistaken in terms of what motivates employees
the most. The questioned managers highlighted that regarding motivation: “nothing is good
enough for the employees and they are never a hundred percent satisfied” (Interview
participants, 2009). However they assumed that their motivation plan is perceived positively by
the employees. A nice comparison with the employees’ opinion based on the questionnaire, the
contrary is the case. It is demonstrable that managers’ insights differ from those of the
employees.
Developing and improving the relationship between employer and its employees may be a key
factor how to easily supply an inappropriate and inefficient motivational plan.
Indeed, “the employees also must respect the employer, it is a two way road” (Interview
Participant, 2009). In return, the employer provides a friendly environment.
Another interview participant (2009) suggested developing a strong relationship based on
communication: “nothing is taboo in our company and every single problem is solvable”.
To sum up, this current situation on the market is extremely difficult and challenging. The
employers have tied hands, there are no budgets for benefit´s development, and indeed the
employees are more demanding.
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4.7. Review of key findings
The place where travellers are centralized in the Czech Republic in particular is definitely
Prague. The greatest prime of tourism in the Czech Republic started more than five years ago.
In 2008, the Czech economy strengthened by grand speed every month. The Czech country
became more expensive to travellers than it used to be, due to the stronger Czech currency.
Travellers expected a higher level of services as their vacation cost more.
Currently, the situation on the Prague market differs in comparison with the previous year. The
economic situation and crisis has hit tourism in Prague heavily. Even the currency exchange rate
difference has already stagnated; tourists are not interested in coming to Prague because of a
lack of money.
This year, the number of visitors staying overnight decreased by 8,7%. Incoming tourism fell by
17,1% (7,3 million) in the first quarter of this year 2009 (CSU, 2009). The decline of visitors
noted especially in 4 and 5 star hotels in Prague. Numerically it was 19,2 % for 4 star and 11,6%
for 5 star hotels (CSU, 2009).
In the first quarter of 2009, the revenue from tourism in the Czech Republic has been 28,550
billion CZK, compared to 30, 717 billion CZK in the first quarter in 2008. On the other hand,
expenses have increased from 17,468 billion CZK (2008) to 17,965 billion CZK this year. These
figures may be very alarming to hoteliers (CSU, 2009).
Based on this reality, it is distinct that the hoteliers do not have the budgets to afford more
expensive employees and due to this fact training and education of existing employees is
needed.
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From the competition point of view, the total number of hotel units is increasing rapidly. It is
obvious that rivalry in Prague has reached an undesirable height and consequently the
fluctuation of employees goes along with this business issue. The number of accommodation
facilities grows year by year. Even in the current economic situation the forecast from the
specialists’ point of view tells us that this trend for the next coming years should be basically the
same or even with an increasing tendency. In 2008, unemployment in the Czech Republic fell to
a low level. Indeed, currently more than 8 % of inhabitants are jobless and the number is still
growing at a great speed, which may suit the hotel managers (MPSV, 2009). Seeing that in such
cases the applicants may be hungry for finding a job so their demands would not have to be so
high. Many companies that are aware of the lack of qualified labor suggest that salaries of
employees should increase in order to make this industry more attractive to the applicants.
Regrettably, the economic situation does not allow this suggestion. Also many benefits
programs are prepared and offered by employers, as this is the most effective tool for motivating
and keeping good employees within a company.
The situation of unemployment in Prague differs from the national average. The present number
3% shows a really competitive market such Prague is and confirms that it may be harder to find
a new employee in this area. In contrast with the increasing number of hotel facilities in Prague
and the cut of expenses within companies, the forecast for the managers is not cheerful. It can
be predicted that demand for employees from distinct areas within the Czech Republic or
Europe will visibly increase, especially from Eastern Europe and Asia because such employees
are cheaper and more flexible.
According to surveys, more luxurious hotels have more employees compared to 3* hotels. The
reason can be due to the higher demand for services in 5* hotels or the fact that more luxurious
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hotels are usually part of some international or national chain with a wider background and
longer history, consequently a higher number of employees.
More than 50% of respondees admit a lack of employees in their businesses. Especially 3*
hotels deal with low rates of employment. It should be also mentioned that 5* are more likely
supported by huge corporations and it can give the “spirit” of the position in this kind of hotel.
Confidence that ensues from this fact can be decisive for the potential employees.
In terms of the difficult situation when finding a new, qualified employee these days, most of the
survey participants agreed that it is hard to find new and mainly, qualified employees in Prague.
The lack of qualified applicants affects the business with no limits and no exception, no matter
which class the hotel is. The prime reason for the low level of qualified applicants for a job may
be the high level of competition.
In the case of applicant qualities, most of the respondees miss loyalty. Respondees agree that
many potential employees are not flexible, not willing and not diligent. In the case of tourism
which is based on services provided, this applicant limitation can be damaging for the company.
Hiring such an employee is pointless.
All of the respondees operating in 5* and 4* hotels believe that unqualified employees can
become to full-value team members. On the other side 3* hotels are more pessimistic and
maybe realistic. The reason can be the higher level of experience with this issue. The way how
the employees could be educated are (in the respondees opinion); 41% external / internal
training, 11% initial / adaptation process, 11% motivation or 11% a well balanced team which
consists of experienced and qualified colleagues.
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All companies use benefits to encourage the employees. The respondees set up a list of the
most popular benefits in their companies; 49% salary (including bonuses, 13.wages), 15%
professional growth and 12% good facilities / encourage.
Lower category hotels maintain that it is easier to find new employees, It should be also
mentioned that even the applicant can be more interested in the more luxuries hotels, the
demands for any position in 5* hotels are huge and more complex than in the case of 3* hotels.
The reasons participants think that luxurious hotels are catchier for the applicants are e.g.
greater possibility of professional growth, higher prestige, higher salaries / benefits, better
working conditions / facilities or less complaining guests.
Consequently, the primary data obtained by questionnaire and interview provide us with valuable
findings and allowed me to create a large-scale comparison.
In terms of training plans, there is no originality in evidence. The managers always prefer more
informal training methods, more than outdoor teambuilding. 100% of managers asked agreed
that more regular training is mandatory. In comparison with the employees’ opinion, they also
noted that training should be more often and ideally on a regular basis. Logically, there may be a
good reason to create a training schedule within a company on a regular basis.
Currently, money, time and people are the three major factors that limit the frequency and quality
of training. On the other hand, managers should be aware of the fact that if the company is
willing to invest in their employees the selection of benefits may be on a wider and larger scale.
In the context of services, the human factor is crucial for tourism.
It arose from the research that managers are mistaken in terms of what motivates employees
the most. The managers asked highlighted that regarding motivation: “nothing is good enough
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for the employees and they are never a hundred percent satisfied” (Interview participants, 2009).
Regarding to the interesting comparison with the employees’ opinion based on the
questionnaire, the contrary is the case. It is demonstrable that managers’ insights differ from the
employees’ opinions. Based on the questionnaire, there is obvious unfamiliarity with what the
employees are looking for. The employees are provided with some benefits by the employer that
they accept. However they are not motivated by them to provide higher work performance. Even
the managers highlighted that “it is only about the money”, from the employees´ point of view;
not only money or bonuses are the most demanded benefits. In contrast, very “low cost” benefits
such is positive verbal appraisal may be extremely effective. 12% of respondees would be
grateful for respect and appreciation from the employers´ side.
An alarming result about the level of motivation of employees ensues on the questionnaire. More
than half employees are currently unsatisfied in their job in the particular company.
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5. Conclusion
This research allowed me to better understand the topic and how to train and motivate
employees on the tourist market in Prague. The objectives presented in chapter 1.2 of this
research paper have been investigated in order to provide valuable recommendation. The
combination of secondary research and mainly qualitative data collection techniques can
conclude the following:
In response to first objective “to indentify and research the evolution of tourism on the Prague
market”, the secondary research provided detailed insights about the Prague market. Also the
comparison with previous years enabled better understanding of the progress. Most of the
secondary data for this part has been obtained from the Czech government or statistical offices.
In relation with the findings, there is currently a decreasing tendency of the current market.
Lower numbers of visitors coming to Prague and lower revenues made from the smaller amount
of hotel occupancies.
Consequently, objective two that is also partly focused on the understanding of the current
situation on the market has been taken into account. The lack of qualified employees in tourism
in Prague has been discovered and also agreed in the data from the survey analysis. Most of the
hotels´ managers support common sense “there are not good and qualified employees
available”. The lack of employees within the company influences the quality of service which is
offered to the customers. Managers and directors questioned deal with this situation by
benefiting their employees, most of them try to retrain applicants to become full-value team
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members. The situation this year has slightly changed compared to previous years, there may
be qualified applicants on the market, but such employees knows their “price”, so managers are
not allowed to hire such applicants and consequently increase the expenses of the company.
With respect to this matter, employers give priority to training and motivating existing employees.
Relating to the second part of this second objective, the semi-structured interview helped me to
determine the training methods that are used within the companies and analyze the motivation
plans and programs.
Based on the primary research, in terms of training plans, there is no originality in evidence. The
managers always prefer more informal training methods, more than outdoor teambuilding.
As the motivation plans are poorly set up too. Due to the economic situation and crisis it may be
reasonable but not effective. Managers should remember that the tourism industry is about
providing services. It is common sense, that the company which provides higher quality services
make higher profits. The lack of budgets for human resources development may be ruinous for
the company.
The third objective “to determine the major criteria of effective training” indicated a narrow variety
of the choice of training methods. The primary research has not given me any innovative ideas
about how to develop effective training too much.
Talking more generally and with accordance to the literature review, it is not only the fact, that
employee should be trained, but without a good training plan and model, this process can
become to useless and ineffective. The effective training plan should always consist of the
following elements; the training needs have to be identified; the learning and development plan
has to be designed; the learning plan and methods should be implemented in process and
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event; and all training plans need to have an evaluation stage or feedback in a systematic
manner.
On the other hand, the managers as well as the employees agreed that training on regular basis
and with repeated frequency is needed.
In response to the forth objective, the effective motivation plan may be established or
recommended. The adumbration of the motivation plan is presented in section 5.2.
Even the primary research ensues that managers are mistaken in terms of what motivates
employees the most. It is demonstrable that managers’ insights differ from the employees’
opinions. Based on the questionnaire, there is obvious unfamiliarity with what the employees are
looking for. The employees are provided with some benefits by the employer that they accept.
However they are not motivated by them in order to provide higher work performance. Even the
managers highlighted that “it is only about the money”, from the employees´ point of view; not
only money or bonuses are the most demanded benefits. In contrast, very “low cost” benefits
such is positive verbal appraisal may be extremely effective.
Following objective four, the recommendation may be discussed, since the fifth and sixth
objective of this research are mainly focusing on the final recommendation.
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5.1. Development of credible theory
This research has been prepared and created mainly along the inductive approach. The
emphasis has been placed on the development of personal theories in order to analyze data and
supported by existing theoretical frameworks based on the literature review. The whole research
paper has been directed to accomplish the objectives and aims of the project.
The proposed theory is that the managers need to be aware of the current situation on the
market and follow the trends in the industry. The training and motivation of existing employees is
the most powerful tool these days how to provide a high level of quality and build competitive
advantage. In response to this method of gaining qualified employees, it can be noted that it is
the less expensive and smartest way to increase the quality level of employees within the
company. Consequently from that, the theory suggests that while such employees are already
working in our company, the priority is keeping and motivation them to become loyal and stay in
the company.
5.2. Recommendation
The aim of this research paper was to be able to answer on the following question:
“How to train and motivate employees on tourist market in Prague”.
My recommendation below presents the suggestion how to reach this aim.
The company should remember that if employees are educated and successful, then the
company is successful on the market. Basically, employees create the company. The
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money which the firm spends on employees will be returned from the increasing
company´s profit.
A training plan has to be developed in the sense of meeting a company’s objectives. This
is important to know, whereas how the employees are trained and taught influence later
on how they react and behave in real situations. The companies´ objectives that operate
in tourism are trying to offer high quality services. That is why the training plan should be
systematic and full of role play and case studies. It is good to provide primary knowledge
training to introduce the company and basic theory but since the employee will deal
directly with clients and partners on a regular basic, role play and case study training
gives them the opportunity to be prepared for uncommon situations and dealing with
them.
First of all employees should be sorted into similar groups based on type of personality,
is crucial but unavoidable. A good training manager should be primarily aware of the
knowledge and what styles of learning are the best for each particular employee. To
learn who prefers which learning style, the training manager should also prepare a
particular test when the result tells which learning type each person is. Based on the
research the manager is then able to prepare a successful training plan for the
company´s employees. Training managers have to make sure that employees
knowledge stays at the maturity stage and avoids declining. Each new piece of
information has to be stored in the employees mind and then has to be used in practice.
Training has to be planed carefully.
When a type of training is selected, a lot of aspects have to be considered. Primarily, the
personal type of employees (which is already mentioned), also a budget for the training
has to be set up. The culture of the company is also important, since the training should
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be contributed to the firm. The motivation plan should be also prepared, if the subject of
the training will not be perfectly interesting to the employees, the motivation has to be
strong enough.
When the training methods and techniques are implemented in the action plan, the
evaluation of the training has to be followed up.
In response to the training methods which may be used within the company, my
recommendation would be to select more interesting training methods which could be
applied within the company. All the initial training which is already used by the company,
should stay since they allow a good primary stage of knowledge but their variety should
be expanded to more interactive and effective training, e.g. e-learning and role play (it
could be useful due to the fact that the business is oriented to offering services). These
additional training methods can be more expensive but can meet the objective of return
of investment.
In terms of motivation, it is obvious that the managers are not too aware of what
motivates the employees the most. To be able to keep or hire good and qualified
employees, the employer should be able to provide a benefit that is more interesting to
the employees. Since the economic situation is not cheerful these days, the benefits
should be cost effective. My recommendation would be to supply free time for employees
by adding a 5th week of vacation. Another recommendation would be to start co-
operation with other companies that are not operating in tourism. It may be fashion or
similar companies, in order to cooperate with them on a barter basis. Simplified, one
company provide its product to the other one to use it for its employees as benefits.
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The last but not least recommendation that is the least time and cost consuming is to
respect the employees and provide them with feedback, not only negative. Fair
communication may be the most powerful tool for managers. Be loyal!
The supporting answer to the research question would be:
“The tourism is about services. Consequently the services are based only on the human
factor. The managers who are not willing to invest in employees, there are not basically
willing to invest in their company. Managers should never forget that if employees are
motivated and successful, then the company is healthy and successful one on the
market.”
My final words would be: “the benefits are not just about the money”.
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6. Self reflection
In order to understand and be able to improve my skills both on a personal level and
academically, this self-reflection has been prepared. It allows me to indentify the positive as well
as negative aspects of this research process.
6.1. Learning experience
The whole dissertation has been very challenging for me. It gave me the opportunity to
understand the market in which I already work. Reviewing the actual knowledge that I have
obtained during my studies, it has allowed me to critically look up the formidable situation and
educate myself. Thanks to this dissertation, I have supplied my common knowledge of this
subject by theories and insights from professionals. To be honest, during the whole research
project, there have been crucial situations and moments that I needed to solve, however the
positive aspects of this project definitely exceed the negative ones. This research enriched me
and I truly appreciate it.
6.2. Personal development
In the context of personal development, I am glad to say that my writing skills have definitely
improved. Consequently logical and multiple thinking have developed. Due to the fact that my
work should be objective, it gave me the opportunity to observe the issue from many sides, e.g.
from the prospective of employees and managers. The comparison helped me to understand the
topic and supply my personal development in terms of making valuable analyses. I considered
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that is was very challenging for me. I believe that since now I am able to create a beneficial
analysis and conclusion based on that.
On an academic level, even though my knowledge of HR issues and current market has been
advanced, I was able to supply my general knowledge by theories and theses. Insights from
other parties opened my mind in order to see things not just in black and white. I have exceeded
my previous knowledge from my studies in the class room to more real and life situations.
Consequently, I feel that my ability of framework usage has improved significantly.
Even though I am already in this business, I never felt so confident in regards to addressing and
interviewing managers or employees. From now, I believe that I am able to provide valuable,
objective and logical pieces of work based on research.
6.3. Strengths & Weaknesses
One of my strongest strengths is definitely the ability to plan and organize the tasks that needed
to be completed in particular under pressure of time. These interpersonal skills were very
valuable for me in this project. Even though there were some issues that eliminate my
performance and attention to the project, I realized the importance of the work and knew that the
deadline cannot be missed.
Additional strengths of this research are that it taught me to ask for support from my supervisor.
At the initial stage I acted as I had managed the whole project without any supply. There was no
evidence of the need of an supervisor, as well as when I used to work on my study assignments.
However along this research paper I realized that the help of my supervisor was indispensable
and beneficial. We discussed the topic in relation to HR issues in tourism and considered
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different ways how to view the research objectives. Lately, I felt that by using my supervisor, it
maximized the way how I exploited the accessible resources.
I must critically admit that this point was the strength of this research, since I was not used to
discussing my assignments with supervisors. Simplified, I feel like I have grown up and become
more professional.
Along with writing the research paper I have also developed the appropriate developing strategy.
I chose various methods; online survey, questionnaire and interviews in order to obtain
qualitative data. Although, at the initial stage I thought that I would not be able to integrate so
many styles in one research.
On the other hand, there were some weaknesses along the project. Due to the fact, that I have a
full time job, the time pressure was too much. Most dangerous for the research was my work
load in real life that at some point disturbed me and took the essential attention from the whole
project. Luckily I managed the time effectively and met the final deadline.
In regards to that weakness I would also definitely prefer to focus more on follow ups, in terms of
distributing my questionnaires. Basically, I distributed the questionnaire but did not thoroughly
place emphasis on the fact if the participant filled them out.
I would also mark as a weakness the lack of ability to go more deeply in the topic. Not only to
generalize the finding to whole market, but really explore unrecognized insights. Due to the fact
that I already work in this industry, it seems to me that nothing really shocking would be
discovered.
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6.4. Improvements
In terms of improving this work, more managers could be interviewed as well as more
employees could fill out the questionnaire. This would require better contacts and more time.
Even though I think, my current contacts are valuable and reachable, the entire population could
not be reached. This is definitely a shame for such project.
The idea of also implementing the point of view of recruitment companies or training providers
may be very interesting. To see the possibilities from different points of view and especially in
response to qualified employees on the market would enrich this research paper.
According to this weakness, improvement in time management would be definitely needed. The
progress on the project was not how I thought it would be. I found it very hard to combine my
daily schedule with this dissertation. It was significant I had trouble with managing the time. My
job kept me very busy all day long and in combination with my studies at school time
management was extremely hard. Nevertheless, towards the deadline I was able to manage
may time more efficiently and complete my project successfully.
6.5. Summary
Over all, I appreciate this dissertation since it gave me the opportunity to research the crucial
topic of Human Resources in Tourism more deeply and carefully. Even though I am already
partly working in this industry; this paper taught me a lot of new things and ideas that have been
very interesting for me.
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Prague College

How to train and motivate employees in the tourist

BA (Hons) International Business Management – 3rd year

Prague College UNDERGRADUATE STUDIES DISSERTATION

Name: Simona Řeháková

Date: 10th August, 2009.

Course: BA (Hons) International Business Management – 3rd year

relevant and valuable.

4.2.1. Development since 1990 ............................................................................................. 66

List of tables and charts

Table 1: Summary of learning theories 16

Chart 1: Number of accommodation facilities in Prague 69

Chart 18: QUESTIONNAIRE - Result of the 3rd question 87

1.1. The extent of the subject area

without good human relations and quality work forces.

Prague and we daily have to face this HR issue.

1.2. Research questions:

My research will attempt to solve the following concerns:

How was the evolution of Prague market?

How is the current situation on the Prague market?

o From the prospective of the travel industry.

o Or from the HR prospective point of view.

How do managers motivate their employees?

How can the effectiveness of training be explained?

What are the possibilities for managers in the future?

1.3. Research objectives:

To indentify and research the evolution of tourism on Prague market.

To understand the current situation on the market.

o To identify the lack of qualified employees.

To determine the major criteria of effective training.

To establish an effective motivation plan.

To implement the findings into the current market situation.

motivation of employees in tourism.

are cited with the inclusion of experts´ opinions.

should be analyzed when selecting an appropriate training method.

needs to be trained in what and how to do a certain activity.

involves the motivation theories.

2.1. Background of the Prague market

tourists than in the previous year (PROFIT, 18/2007, p.56).

2.2. Learning theories

time is just wasted.

associated with the high standards of job performance”.

There are three basic learning theories (HNC/HND Business, 2004):

Behaviorist – it this case, the learner is essentially passively responding to external

repeatedly activated. A simplified explanation according to this theory, respond to a specific

Cognitive – the learning process is focused on internal, mental activities (thinking,

approach its goals.

behave in a certain situation.

Summary of learning theories Table 1

Aspect Behaviourist Cognitivist Social and situational

Locus of Stimuli in external Internal cognitive Learning is in

Purpose in Produce Develop capacity Full participation in

(Mark K.Smith, 2003)” cited HNC/HND Business (2004)

2.3. Learning styles

There are three major learning styles (HNC/HND Business, 2004):

is focused on spoken word, using sound and music.

for the learners.

Following are additional learning styles

Logical (mathematical) – learners prefers using logic, reasoning and systems

Social (interpersonal) – learning is effective in groups or with other people

Solitary (intrapersonal) – self study is the priority factor in this style

for example: Informal learning, workplace learning, self-managed learning, personal

development learning, action learning, and outdoor learning, coaching or e-learning.