A study to analyse the various financial and non-financial factors in improving the

employee performance at Hilton Hotels, Malaysia

Chapter 1 - Introduction

The success of any business enterprises mainly depend on the performance of its employees and
the services rendered to their customers. Poor performance of the employees will affect the
growth and development of the organization; this is highly common in services industry
specifically in hospitality industry. Though there are many factors which influence the employee
performance, it is considered that the main factors falls under motivational aspects. Therefore,
this research focus in analyzing the key motivational factors which will improve the performance
of the employees in Hilton Hotel located in Malaysia. In this chapter, the researcher will provide
a detailed background of the study explains the motivation of undertaking the study and also
explores the key problem statement, identify the key objectives and research questions for
carrying out the study.

1.1 Background of the Study

In Malaysia, the services industry is considered as an important aspect as it contributes nearly

53% of the total GDP in the country, this shows that more than half of the GDP is mainly
contributed by the services industry. It is also noted that one of the highest growing sector by
revenue in the services industry comes from tourism. (Burt, 2011). In Malaysia, the hotel
industry is one of the lucrative business and accounts for a major share in the hospitality and
tourism industry. The major revenue of the hotels comes from providing accommodation
services, food services, transport and other services mainly to the tourists, who may be from
domestic or international travelers. The below chart shows that the occupancy rate in Penang
Island has been constantly increasing, this further states that there is an increased inflow of
tourists from domestic as well as from international markets/
It is further stated that by the ministry of tourism that there is an increased inflow of foreign
travelers during the period, since they are very much attracted to the culture and tourist
destinations which the country offers. Also Malaysia provides different cultures, heritage
buildings and other aspects which most of the South Asian countries do not possess. Malaysia
comprises of Malay, Chinese, Indian and other ethnic race and groups, this attracts many
travelers to make Malaysia one of the important destination. (Hemdi, 2010). However, when the
domestic and foreign travelers flock in to the country they usually stay in hotels, the employees
of the hotels are the one who are in direct contact with the customers and provide the needs and
wants. Therefore the overall performance of the organization greatly depends on the employee
performance which they perform to the travelers. In order to enable the employees to perform at
their very best, organizations adopt various methods. One of the essential factors which greatly
enhances the employee performance is the motivation provided by the organization to its
employees. It is widely noted that highly motivated employees perform the task with utmost
efficiency and effectively, therefore the organization can achieve its mission and vision at ease.

Managers of companies or organizations are primarily responsible for the information or the
work that the team properly. To do this, the administrator must ensure that service personnel are
responsible for recruiting the best people doing the work. The company is to optimize employee
performance, it is necessary for the workers is inadequate. Therefore, theoretical and practical
impetus to the difficult issues that affect the number of sectors. Although much has been written
about the motivation for scientific research, this question is unclear and often poorly practiced.
At this point, in order to better understand how incentives affect the performance of employees
must understand the human nature. To the extent that the employee performance incentive effect,
you must mix management and effective leadership to the appropriate management tools to
achieve this goal.

Although motivation is very important to determine if the employee can not be other factors such
as availability of human resources workforce. Therefore, the efficiency of successful work
provides a variety of designs. For example, two people can be due to a similar job at the same
time successful for several reasons, the seller can motivate your sales commission, while the
other may be that sales targets. (Biswas, 2012). This creates a shadow on the subject, because the
motivation to improve the performance and per company varies from individual to individual.
These challenges are leading in the design of appropriate motivational tool that can meet the
expected performance of the company. It comes at the most critical scientific thinking. In light of
this, a number of literature and practice research leaders tried to solve this interesting discipline
in how incentives can improve performance. Research and modern observations show that to
achieve a more productive and creative employees well motivated in business and organizational
goals. On the other hand, employees are less motivated or less effective and often distract from
achieving organizational goals. necessary to encourage such systems to promote the development
and practice their ability to develop a better performance

1.2 Motivation for the Study

The performance of the employees is highly significant for the organization, which depend
mainly on their customers. The management always aim in enhancing the performance of the
employees through various means so that the employees can work efficiently and effectively in
realizing the goals of the organization. Therefore, motivating the employees is an important and
most necessary function as it would realize in enhancing the behavior of the employees in a
positive way. Highly motivated employees bring in good quality and nature, thereby discharging
their duties with utmost care and confident, this will result in enhancing their performance in
constructive ways. That is why many supervisors and managers always believe that it is quite
important to motivate the employees in the work area. Motivation gets in origin from Latin word
which means “To move”, many psychologists and organizational behavioural enthusiast have
stated that motivation is considered as the key process which influences the individuals in
realizing the stated goals or objectives. Furthermore, it is widely stated that motivation provides
the individual the inner desire to derive the things which enables him to achieve the needs, it
assists the employees to push for things to happen and pull out himself even when the things get
bad or not desired according to his wish. (Aarabi, 2013). Nowadays, most of the employers are
spending much time and energy in identifying various ways and means to motivate their
employees and enable them to stay focused so that they can enhance their performance and
realize the mission and visions of the business and organization at large. Many researchers have
analysed and identified that there is a high impact between the motivational factors and
employee performance in various manufacturing industries. However, very less study was
carried out in the hospitality industry. The major motivation for identify the major motivational
factors which will influence the employee performance in the hotel industry with more focus on
Hilton hotels in Malaysia.

The study was designed to investigate the factors affecting the performance of employees in the
hotel industry. These days, employers should address factors affecting employee performance,
because it will affect the whole body as well. A successful event is about an employee carries out
his work, and this factor affects the performance of employees. Additionally, this research may
be very important for employers to provide information and knowledge can have a more
effective employee performance. Therefore, employers can serve as a guide and the concept of
improving the efficiency of the organization and employees to achieve organizational goals.
Therefore, administrators really focus on the factors affecting the performance of employees and
helps the body to earn higher profits in the future. (Chong, 2013). This is advantageous for
employers to understand the factors that affect the performance of the employees. This study is
also a lot of employers to understand the factors that affect the performance of the employees in
the hotel industry, especially in five-star hotels. It offers various services to industrial customers.
Retaining customers, improving the organization of employee efficiency with a high standard of
service. To ensure that employers must understand the factors that affect employee performance.
In addition, results will be impacted employees in the organization, either. This is because the
organizational base for the employee to perform the company if the employees work well in
organizational development and organizational growth can be good as changes in corporate
culture. Thus, managers, employers and personnel department must take into account the most
important factor in the performance of the employees. It also affects the employee performance
evaluation not only employees, but also attributed to organizational development. Employees
greatest assets of any organization, the growing organization in the market, employees have good
results.

All organizations want to succeed, even in the current environment is very competitive.
Therefore, any company size and the market who want to retain the best workers, recognize the
important role and its impact on organizational effectiveness. To meet these challenges,
companies need to create a strong and positive relationship with the team and direct them to the
project. For the goals and objectives, organizations develop strategies to compete in highly
competitive markets and improve their performance. However, each organization's human capital
as the most important tool that can lead them to success and good management, reduced. If the
workers are not satisfied with their jobs and are not motivated to perform its tasks and attain its
objectives, the organization can not succeed. (Anil, 2012). People have many needs to continue
to compete. Each person has a different combination of requirements and payload, as part driven
by the recognition, while others focus on safety. If managers can understand, predict and control
the behavior of the employees, you also need to know what your employees want to work.
Therefore it is important for the manager to understand what really motivated workers without
guesswork. Ask how employees feel in a given situation does not give an accurate assessment of
needs interpretation would distort reality. closer view of a particular circumstance, the greater the
opportunity to interact with specific properties. Thus, drivers can increase efficiency to gain a
better understanding of the real needs of workers.
1.3 Problem Statement

Malaysia is a developing country in Asia and houses to many service firms, which contribute
toward its economy. Moreover, Malaysian service organizations play significant roles both
socially and economically. It is important that the driver is aware of the treatment of the basic
needs of the employees and sends them to the performance of employees of large companies.
When I met the needs of their employees are likely to take responsibility for the performance, as
well as to achieve the objectives of the organization. This study aims to better understand the
motivational factors that affect the performance of the employee's service organizations in
Malaysia. Therefore, the results of the study contribute to the theoretical and practical. This will
contribute to existing knowledge about the factors that can improve employee performance in
service organizations. The results are of practical use for service organizations that
administrators can use to motivate employees to improve employee performance. When you
change the priority needs of the workers most companies, the employer must be needs and
priorities of the current team aware. In fact, they should create a positive work environment to
improve employee performance, because it seems so much difference based on demographic and
behavioral needs there. (Manzoor, 2011). Therefore, the management of the service organization
to establish a good relationship with the employees in the workplace and employees to solve
problems and manage their reasons. Education is an interdisciplinary major, and that the results
are closely linked to the strategic objectives of the organization. employment, activities related to
employee performance and how the activities of the team. In fact, it was not the subject of any
employee behavior, the concept of performance. The behavior must be for the organization to
employees, such as an increase in its turnover and profit.

"Determination of performing the task of the estimated value of several episodes of the
organization that the person behaves in a normal year." Thus the measures determined by the
yield on the assessment and evaluation, but not the same actions and the employee performs for a
while. Every organization, the key is the employee's performance, as they are based on the
success or failure of the employee's performance in the organization. Many companies personnel
managers for the performance of the employee's annual or quarterly for each employee, to help
them identify the proposed areas of improvement. The company has the advantage over other
competitors in the talent can take the lead in the market. performance of employees in different
jobs, in close cooperation is vital to the success of the unit. An employee performance feeling is
exactly the same as job performance. According Kahya (2009) identified two dimensions of
workplace behavior, work performance and contextual performance. In performing these tasks,
the staff directly involved in the production of goods and services to support technical
procedures Key activities organization indirectly. The execution of tasks means that if an
employee uses special skills and knowledge to support the technical procedures for the core of
the organization. (Hemdi, 2010)

Two types of task execution. Activities, which are raw materials of products and services such as
body products, such as the operation of a production machine in the factory and the products sold
at retail is one of the mission's performance. these types of construction work in the operation of
the service, to maintain their free core technology of supply of raw materials and distribution of
finished products. Moreover, according to Werner, also known as the result of Citizenship
contextual performance and is defined as the efforts by workers who are not directly related to
the operation of the main task, but it is still significant. In fact, these are the organizational,
social and psychological structure is an important catalyst for activities and tasks in the process.
Two types of contextual performance concept. The first is a behavior, with a focus on well-
functioning body. On the other hand, there are certain behaviors that are intended to change and
improve workflows and organizational processes. performance data and content can be easily
distinguished conceptually. (Aarabi, 2013). A variety of data, content and execution of many
business factors, job satisfaction and organizational commitment. The Agency shall ensure that
effective employee satisfaction with the organization and encouraged to stay. Furthermore, skills
and competences likely to predict the outcome of the work in terms of personality and related
factors generally predict contextual performance. Effective use of the expertise of staff and
special skills to work in the right direction. Workers perform another job in the organization,
mainly in production, manufacturing, marketing, finance, warehousing, transport, public
relations, etc. All these activities are closely related to the goal of the organization's employees.
There is an employee-efficient performance, this can be achieved productivity local, sales, profit
and market organizations in the market. It is particularly important to understand the employee
performance management and measures to develop and motivate their employees to perform
well.

1.4 Research Questions and Research Objectives

The basic objective of the research is to analyse various financial and non-financial factors in
improving the employee performance at Hilton Hotels, Malaysia

1.4.1 Research Questions

Do financial motivational factors improve the employee performance at Hilton Hotel?

Is non-financial motivational factor improve the employee performance at Hilton Hotel?

What are the other motivational factors improve the employee performance at Hilton Hotel?

1.4.2 Research Objectives

The objectives of the research are

To understand the extent of financial motivational factors in improving employee performance at

Hilton Hotel, Malaysia

To analyse the non-financial motivational factors in improving employee performance at Hilton

Hotel, Malaysia

To identify the other motivational factors in improving employee performance at Hilton Hotel,
Malaysia

1.5 Contribution of the Study

The basic contribution of the study is to apply the most common statistical tool like Correlation
analysis, regression analysis to understand which motivational factors, financial or non- financial
factors, will assist in improving the employee performance
1.6 Structure of Dissertation

The dissertation is divided into three chapters

Chapter 1 deals in providing the introduction to the study, background of the study which is
undertaken for the research. It also mentions the key motivation for performing the research, the
researcher also specifies in detail the research objectives and research questions of the study.

Chapter 2 specifies the review of literature, the study which is undertaken is to analyse the
motivational factors which influences employee performance, the researcher intends to collate
various data pertaining to previous research in the stated topic. The researcher mainly uses
secondary data from research journals, business magazines, other dissertations etc.

Chapter 3 provides in detail the research methods pertaining to the research. It also provides the
research design which is used, research approach, strategy and sampling techniques for carrying
out the detailed research in the subject

1.7 Chapter Summary

The chapter provides a detailed introduction to the study, the key motivations in carrying out the
study in the stated topic, the background of the study, research objectives and research questions
to the study.
Chapter 2 – Literature Review

2.1 Introduction

The feeling of motivation is derived from the Latin word "mover", which means "movement".
Generally, motivation refers to the relations between individuals and position. The incentives
include procedures for the face, "intensity, which means how much work a person is directed to
the rigor and perseverance, how long can hold in order to achieve this work. So the motivation of
employees refers to the intensity of the body of their efforts to achieve the organization. Leaders
business organizations to cope with the challenges of incentive management for its employees to
meet your personal and professional needs to improve the effectiveness of their work. in fact,
most research has found that many companies in the world with a focus on employee
performance and motivation that can help the performance and productivity of their other work.

2.2 Basic concepts

Performance of employees required to increase its efficiency by changing the record to obtain the
desired results. But there are many factors that affect the efficiency of the organization and
employees in force. Aarabi (2013) said that many organizations will succeed in the goals and
objectives, they contain an economic identity. people's perception of their identity, who they are
and who decides that perhaps the most important factor in the economy, and indicate what would
be the best incentive for performing tasks. It seems as evidence of a positive relationship of
economic factors and the performance of employment services organizations. Money is the main
driver; There is no other reason or technical measures motivation comes even close to it in
relation to the amount of influence. All companies use compensation, promotions, bonuses or
other rewards to motivate and encourage the development of high officials. This superiority
attract, retain and motivate people to higher performance. According to Lemieux, the data shows
that if you have a good measure of efficiency, the performance fees improve employee
productivity and enhance the quality of the game. But the effect of the wage limit the qualitative
performance measures are.

Consequently, profit-maximizing firm will introduce performance pay in a given situation when
it comes to measuring the quality of the work very well. Chong (2013), provide evidence to
support the payment of costs related to employees and acts as an incentive to improve employee
performance. Meanwhile, a study by Lazear that when employers to increase workers' wages, the
majority of employees working on the tasks and responsibilities diligently. According to
Manzoor (2011) study showed that when it comes to driving increased teacher salaries by more
than 3%, the average level of student learning improves. Fisher has money as the main
motivation for the employees. working with Kelly for banks to participate. His research showed
that bank tellers, it seems that low job satisfaction and seem to be less willing to work. In
addition, the study found that the down payment in the bank tellers is one of the main factors
affecting the performance of employment services company.

2.3 Dependent variable – Employee performance

Education is an interdisciplinary major, and that the results are closely linked to the strategic
objectives of the organization. employment, activities related to employee performance and how
the activities of the team. In fact, it was not the subject of any employee behavior, the concept of
performance. The behavior must be for the organization to employees, such as an increase in its
turnover and profit. "Determination of performing the task of the estimated value of several
episodes of the organization that the person behaves in a normal year." Hameed (2009).
mentioned Motowildo Thus the measures determined by the yield on the assessment and
evaluation, but not the same actions and the employee performs for a while. Every organization,
the key is the employee's performance, as they are based on the success or failure of the
employee's performance in the organization. Many companies personnel managers for the
performance of the employee's annual or quarterly for each employee, to help them identify the
proposed areas of improvement. The company has the advantage over other competitors in the
talent can take the lead in the market. performance of employees in different jobs, in close
cooperation is vital to the success of the unit. An employee performance feeling is exactly the
same as job performance. According Burt (2011), identified two dimensions of workplace
behavior, work performance and contextual performance. In performing these tasks, the staff
directly involved in the production of goods and services to support technical procedures Key
activities organization indirectly. The execution of tasks means that if an employee uses special
skills and knowledge to support the technical procedures for the core of the organization.

Independent variable – Financial reward

There are many types of economic incentives. Some of these give direct the employee with
money. The bonus is based on the results of the budget, quality and other standards can be used
as a direct financial incentive. Bonus management fee, some companies have become popular as
a way to warn Buster employees in a project or activity. Although the number of companies that
prize money has increased only 7 percent actually use these awards to present. Most companies
use a software compensation to motivate their employees. sales contests of short-term incentive
programs can be an effective motivational tool if carefully designed and precision. Selling
competition must be for a specific purpose, such as to increase sales of short-term sales slow and
new customers products. The project should take this into account in the sales competition: each
seller has an equal chance of winning, sales quotas and the choice of the open ends, where all
sellers can win. In addition to the above, there can be used an unlimited restricted procedure
involving a limited number of retailers winner. The price should be attractive to all prices. At
least 10 percent of the budget goes to the competitive sales, so there is an exciting company.
Care should be taken so that workers do not use such undesirable practices as leverage to help
your goals. The unwanted process has not announced during the race ahead. The lead for most
compensation plans for the company and the specific programs. These programs reward
executives for their performance and the performance of the company. Managers are
compensated in two ways. In one case, a basic salary of a staff member or a professional member
of society. Salary for a fixed amount of money to pay employees. Above the basic salary, most
executives also receive one or more forms of incentive programs. The classic way to incentive
programs for executives in the form of a commission. The bonus, however, is usually determined
by the Company's development. So at the end of the year a certain percentage of corporate
profits can be abused in a bonus pool. (Hemdi, 2010). The top management will get a percentage
bonus pool. President and CEO, of course, the likelihood that a greater proportion vice president
bonus. In addition to salaries and benefits, many executives receive other forms of remuneration,
such as; This may be in the form of parts. Plan options were created for managers the
opportunity to buy shares in the future at a predetermined fixed price. The idea was that if the
leaders contributes to a high level of business performance, the company is expected to increase
in value. This means that drivers will be able to buy shares at a predetermined price, which
should preferably be less than the price of the futures market.

Independent variable – Non-Financial reward

Organizations that are positive efforts is a framework that can achieve a high level of motivation
is not learning and development opportunities offered by the financial reward system. But the
personal leadership skills will continue to play an important role in the development of their own
motivational skills to get within a single organization, it is best to take advantage of the process
that the company incentive system. Attribution to evaluate the organization of team performance
in an operation carried out by a member or group. In common parlance, is a little time, "I got you
some good." This way of expressing his gratitude in a special or extra effort within the
employee. (Biswas, 2012). "Organization recognized two main purposes:. Encourage employee
or group to repeat or continue the behavior and encourages other employees plans have proposed
recognition will celebrate the organization's objectives in general, such an event that aims to
recognize the achievement of the objectives of key enterprises. This awareness increases per year
and recalling the importance of the objectives have been achieved within the company. for
example, some of its most important meetings telecommunications held in each hand in an off-
site to celebrate the achievement directs them. recognition or (observations and events) informal
(verbal) or formal, it was the most cost effective way to strengthen the implementation of the
necessary measures within the organizational measures taken. however, to isolate the recognition
of income and their fees, they often lose much appeal. especially constructive criticism posts is
essential for expanding and developing the team . negative reinforcement, such as failures and
workers threaten job losses, workers adjust their behavior simply to avoid punishment. It may
have a positive impact on the work, but not to create tension. negative responses confirmed the
product as a "not my job" or "do not know". On the other hand, the positive development of
regular checks or additional discretionary effort of employees. Positive feedback motivates staff
to work as a team. employees answer that "I do not know," or "none of my business, but I will
find someone who can help." The staff meetings once a year, do not produce the extraordinary
efforts.

Independent variable – Other factors

Activity and performance of personnel actions and determine the supporting surface. Employees
and working together. Work harder and improve their performance, when you have a good
working environment. According to Aarabi (2013), employees can share their knowledge with
others due to environmental purposes. This helps to increase the efficiency of the organization in
terms of profit, competitiveness, and so on. Health and safety in the workplace is the key to this
body must take the exam. This is because part of the job description causes diseases, injuries,
accidents and risks. This means freedom of the risk of damage and loss of security. As reported
threat to the safety of the workers protection of workers. unions so that workers can contribute to
the wealth of the health sector. This is because an employee of the assets of the organization. A
hostile work environment is likely to be a natural disharmony. poor working and dangerous
constitute a significant risk to workers. As light is necessary for workers while performing their
duties. Proper lighting and more products and minimize errors. The right lighting can reduce
eyestrain, while the work done. Good lighting helps workers to focus on the work and increase
productivity. "The lighting in the workplace," said the desired level of illumination of the work.
For example, organizations that provide enough light for those working in the audit work and the
less light is needed to handle the material. (Chong, 2013)

2.4 Theories and Frameworks from other research

Herzberg had the idea that the underlying factors that cause job satisfaction is the opposite of
dissatisfaction in the workplace. Herzberg research conducted by a team of accountants and
engineers. Herzberg studies concluded that the workers affected by two factors; motivation and
hygiene factors. Create incentives for the satisfaction of power, recognition, autonomy and other
aspects inherent when met. In addition, disinfectants come improves dissatisfaction when not
fulfilled. Incentives are factors that a sense of wellbeing in the workplace. These factors affect
the company's workflows; For example, give responsibility to carry out expansion work within
an organization, and the person with the necessary conditions leading to the development and
progress to higher-level functions. Incentives Factors that comes from within a person's innate.
These can be obtained, the interest in the work, the responsibility for the design, development
and progress to the next level. Herzberg hygiene factors in a suitable working environment, but
not increase satisfaction. For example, low wages cause job dissatisfaction, which affects the
performance of the employees. Hygiene factors are important to ensure that the working
environment is not developed disappoint situation. Typical hygiene agents in wages, working
conditions, government policies and the management company. A number of researchers,
according to a number of explanations can be an incentive for a company to achieve these.
Maslow's "hierarchy of needs Maslow." So in 1943, Maslow argued that people need an inner
impulses of self-realization (awareness) and personal competence. Maslow night view are five
levels of needs and to meet the need for a time or level in the hierarchy affects behavior. this
level of behavior tends to fall, now projecting a stronger influence on behavior, the need for the
highest level of the hierarchy. (Kahya, 2009)

First, people are motivated by psychological needs: psychological needs of Maslow do this, there
is a basic need to survive, including food, warmth, clothing and shelter. When people are hungry,
homeless or clothes, they are more motivated to meet these requirements because these
requirements have the greatest impact on their behavior. But when people no shortage of basic
needs (physiological needs), they need to move to the second level, which Maslow also showed
that higher order needs. The second level of security: security is often the most important need of
the people at that level. This is expressed safely in family doctors and workers. (Anil, 2012). The
third level of Maslow's needs were social needs. When you feel safe and safety at work, I put the
employment relationship, the goal is to try to build a good friendship, love and intimacy. As we
continue to move Lader, we need self-esteem: This is the fourth level of Maslow's needs this
recognition to be accepted and appreciated by others. The same level as last Maslow's needs are
greater or selfactualization: This update was that more and more what you have to do it the right
to do so.

It is an effective method of performance management tools and motivation of the employees are
crucial for high performance. However, this is not a sufficient condition for effective
performance management. The most basic question of all performance management is taken
seriously and respected as used by managers and employees. performance management is all
about perfection, synchronization, modernization and creating value for the customer, its
economic value for shareholders and owners. The extent of performance management are
naturally very broad, so as to take account of the management company's performance as a tool
to increase the motivation of employees performing state. Effective performance management
requires a thorough understanding of efficiency. In other words, to understand the service areas
and the data included in the job description of a company or organization. When sufficient
control so you need to work is the basis to evaluate and improve performance. It is the basis for
evaluation and improvement of business performance. When this got no results, the missing link
in the employee performance evaluation and capacity to improve the performance of the
company or organization's employees. Moreover, there is a missing link in the evaluation of
other colleagues on the performance of the employee in the same job description.
Transformational leadership differs from other leaders as charismatic leader, the transaction and
other leaders. Transformational leaders of the drivers that have been a good decision, appropriate
communication skills and self-confidence. In addition, central transformational leader in the
development of employees, such as managers to clearly define the goals and try to push the
workers to struggle for goals. (Biswas, 2012)

Otherwise, the transformational leader can carry out the development of a successful employee
because his / her good decision-making and decisions. transformational leader does not
discriminate against employees based on race, color, gender, family history, and so on. But the
head address of all employees fairly and improve all employees receive the same level of
knowledge. In addition, management will help to change used in the creation of self-esteem, self-
confidence and trust in the organization and its mission. But a source of transformational
leadership behaviors seen four dimensions of motivation, idealized influence, intellectual
stimulation and individualized attention. idealized effect is related to the formulation of the
vision and challenging goals and motivating work great interest from fans. Transformational
leaders idealized influence can be trusted and respected by the team. According to Shelley D., J.
Francis, William E. & Leanne said transforming leaders as a model for the employees to make
good decisions for the organization. In this way, transformational leaders influence the attitudes
and behaviors of employees. On the other hand, helps the leader of transformation of behavior
also to better understand the employees to organizational success and performance greatly affects
the performance of the organization. Effects of cohesion between the idealized transformational
leadership style that helped employees and the head, thereby improving employee performance
with the support of leaders.

2.5 Theoretical Framework

Financial Reward

Non-financial Reward Employee performance

Other factors
2.6 Hypothesis development

Null hypothesis 1: There is no significant difference between financial motivational factors and
employee performance

Null hypothesis 2: There is no significant difference between non-financial motivational factors

and employee performance

Null hypothesis 3: There is no significant difference between other motivational factors and
employee performance

2.7 Chapter Summary

This chapter provides in detail the review of literature of dependent variable employee
performance with independent variables financial, non-financial and other factors. This will
provide a detailed insight of the factors which enhance the employee performance at Hilton
Hotels.

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