Today society is often called the era of globalization. Age of infinite competition that there is no community of nations frontier was coming. Globalization trend makes not only Community of Nations being accelerated, but also the core competency in MNC more important.
As the ripple effect of the tourism business on a nation's economy is gradually increasing and becoming important worldwide, the interest towards tourism business is elevating, and also it is promoted as a strategic business.
With the entry to the advance country around the corner, Korea has to put more emphasis on enhancing the competitiveness of tourism hotel industry. The firms capable to satisfy customers with high quality service could survive and grow in fierce competing business environments. Consequently, the quality management emerges as a competitive and differential factor in hotel business.
The purpose of this study is not only to offer some suggestions about strategies to improve tourism hotel firm's performance, as well as to find the critical factors in tourism hotel quality management, but to test the influences of critical factors to the tourism hotel employee's job satisfaction, organizational commitment and customer orientation.
Therefore, this study examined how organizational quality management had effect on employee's job commitment, organization commitment, customer orientation and perceived firm's performance in hotel.
For carring out the study, two methods(theoretical study and empirical study) were executed. Theoretical study through various previous researches for quality management and employee's job satisfaction, organizational commitment and customer orientation along with firm's performance in hotel was executed.
It is required to strategically administer total quality management including top management leadership, customer orientation, process management, strategic planning, human resource management and information management in keeping up with newly management environment.
As the firms of service provider need to recognize the importance of quality management, they can adapt themselves positively to changes of tourism hotel marketplace environment. Employee's system-effectiveness factors consist on job satisfaction and organizational commitment. Customer orientation factors consist on customer responsing attitude and reliability. Business performance factors consist on financial performance and non financial performance. These factors result from factor analysis. Along with this theoretical study, the empirical study was executed by conceptual modelling and hypothesis testing.
The Data investigating the critical factors on quality management affecting the business performance in tourism hotel industry were collected from 604 employees among 19 tourism hotels in the cities of Seoul, Daegu, GyeongJu, Busan, Korea by the use of questionnaire method.
The factor analysis and the structural equation model(AMOS) were used to analyze the data. To verify the reliability and validity of quality management subordinate factors Cronbach's α and confirmatory factor analysis were processed. To examine employee's demographic characters and job relating characters, Frequency analysis was processed. The hypothesis tests were conducted with structural equation modeling analysis.
The results in this study can be summarized as follows :
(1) Like other service companies, the level of quality management in tourism hotel had an effect on employee's job satisfaction, organizational commitment, customer orientation, and management performance positively.
(2) Quality management has a positive effect on employee's job satisfaction and organizational commitment. The employee's job satisfaction and organizational commitment is important, because they improve labor productivity, company image and life quality in workplace. So, the hotel industry has to pay attentions to the improvement of quality management.
(3) Quality management has a positive effect on employee's customer orientation.
(4) Employee's job satisfaction and organizational commitment had a positive effect on employee's customer orientation.
(5) Employee's job satisfaction and organizational commitment had a positive effect on firm's performance. The higher the job satisfaction and organizational commitment, the higher the business performance.
(6) Employee's customer orientation had a positive effect on firm's performance.
(7) Mediating roles between quality management and business performance are found to have a positive effect on firm's performance.
This study has a limitation on accepting resonable test result because it is focused on hotels in a limited area. Also, the analysis is based on Deluxe A hotels.
For the effective quality management in tourism hotel industry, it appears to be imperative to establish business strategy designed to clear out divergence in employee's perception and knowledge in TQM.
The current condition for the hotel business these days is uncertain and continuously changing. Quality management is forecasting a company's response to being different from other competitors, competing with others, and winning in the market. The hotel industry needs to put more emphasis in quality management, because employee's job satisfaction, organizational commitment and customer orientation are the keys to the high performance of the hotel business.