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International Journal of Contemporary Hospitality Management Meeting career expectation: can it enhance job satisfaction of Generation Y? Haiyan Kong Sujuan Wang Xingxing Fu

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Meeting career expectation: can it enhance job satisfaction of Generation Y? Haiyan Kong Business School, Shandong University (Weihai), Weihai, China

Sujuan Wang Downloaded by University of Central Florida At 15:32 24 March 2015 (PT)

Shandong University (Weihai), Weihai, China, and

Xingxing Fu

Meeting career expectation 147 Received 11 August 2013 Revised 29 November 2013 4 February 2014 3 March 2014 Accepted 29 March 2014

Business School, Shandong University (Weihai), Weihai, China Abstract Purpose – This paper aims to explore the influence of career expectations on job satisfaction of Generation Y, as well as the mediating effect of career expectations on the relationship between hotel career management (HCM) and job satisfaction. Design/methodology/approach – Data were collected from the main tourist cities in China with Generation Y employees working in the hospitality industry as the target population. A total of 442 valid questionnaires were obtained, and structural equation modeling was used to examine the relationships among the constructs. Findings – HCM contributed positively to employees’ career expectation and job satisfaction. Career expectation was positively related to job satisfaction, as well as mediated the relationship between HCM and job satisfaction. Research limitations/implications – This study is limited by the use of self-reported data in the cross-sectional design because all participants filled out the questionnaires by themselves. The use of convenience sampling method presents another limitation for this study. Practical implications – This study may serve as a guide for managers and policymakers. First, this study highlights the importance of effective career management activities. Second, this study may help hotels retain the qualified staff members. Third, this study may help hotel managers respond to the career expectation of their young employees. Social implications – The meditating effect of career expectation highlights its importance in the career management system. The main force of market labor is Generation Y, who are known for their high career expectation and their emphasis on their career development. The findings indicate that both extrinsic and intrinsic value factors provide greater contributions to job satisfaction than prestige and stability factors. Therefore, hotels must provide a stable working environment, and care more on employees’ intrinsic value. Aside from providing high compensation, employers should also provide career growth opportunities and challenging job to their employees, as they are important motivational factors. By providing tailor-made career activities, hotel managers may satisfy the career expectations and enhance the job satisfaction of young employees, which, in turn, leads to a mutually beneficial situation for both managers and employees.

The author would like to thank the support of Ministry of Education of the People’s Republic of China, Planning Research Grant number 12YJA630051 and the support of Shandong University (Weihai) Overseas Student Education Reform Grant number 1030301011301.

International Journal of Contemporary Hospitality Management Vol. 27 No. 1, 2015 pp. 147-168 © Emerald Group Publishing Limited 0959-6119 DOI 10.1108/IJCHM-08-2013-0353

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Originality/value – This study explores the predictors and outcomes of career expectations of Generation Y employees. It highlights the importance of meeting the career expectations and also shows initial evidence on the mediating effect of career expectation. The findings of this study may provide useful guidance to both hotel operators and employees. Keywords Careers, China, Generation Y, Generational differences, Job satisfaction, Human resources management, Hospitality management


148

Paper type Research paper

1. Introduction The hospitality industry is a service-oriented business, and hotel employees play an important role in serving customers. The work attitude and service quality of employees are important in the success of a hotel – because they comprise the main assets of a company. When employees are satisfied with their job and career, they tend to be more enthusiastic in their work and have a greater sense of responsibility, which enable them to provide better service to their customers (Kong et al., 2010). At present, the majority of the workforces in the hospitality industry are from Generation Y, who were born between 1981 and 2000 (Gursoy et al., 2013). Their generational characteristics may lead to distinctive values (Chen and Choi, 2008; Park and Gursoy, 2012), and may also pose a great challenge for hotel human resources management. Both understanding Generation Y’s characteristics and enhancing their work performance present a meaningful topic for both researchers and practitioners. Although Generation Y employees are considered as fickle, self-focused and transient, they are highly educated, ambitious and career-oriented individuals (Dinnell, 2007). Unlike previous generations of employees, Generation Y employees focus on career development, work–life balance and quality in the workplace (Broadlbride et al., 2007). Money is a lesser motivator, whereas opportunities for career growth and advancement, as well as a fulfilled balanced life, are greater motivators for Generation Y employees (Crumpacker and Crumpacker, 2007). Providing effective career management and supporting the career development of these employees may help hotel managers recruit and satisfy young employees in their workforce (Barnett and Bradley, 2007; Kong et al., 2012). According to the balanced theory of career management, both organizations and individuals have their respective obligations in the career management of employees (Baruch, 2006). The joint responsibility of the organization and the individual in career management will lead to greater effectiveness in employees’ job performance. This balanced view of career management serves as a theoretical foundation for this study. Although Generation Y employees tend to self-manage their careers, they expect their employers to provide them with effective career support and to accommodate their expectations (Gursoy et al., 2013). Therefore, meeting young talents’ career expectations is an important step in enhancing their job satisfaction and working enthusiasm. Career expectations refer to real, reachable thoughts and career targets that an individual wishes to gain (Armstrong and Crombie, 2000; Metz et al., 2009). Most previous studies have examined the influencing factors of career expectations from individual perspectives and have found that the career expectations of employees are influenced by their personal interests, hobbies, family background (Schoon and Parsons, 2002), educational level, race/ethnicity (Cook et al., 1996) and gender (Greenhaus and Parasuraman, 1993; Metz et al., 2009; Powers and Wojtkiewicz, 2004).


However, the effects of organizations on career expectation have elicited limited research attention. Therefore, this study aims to explore the influence of perceived hotel career management (HCM) on career expectation, the effect of career expectation on job satisfaction and the mediating effect of career expectation. The findings of this study may serve as a guide for both researchers and practitioners.

Meeting career expectation

2. Literature review 2.1 Relationship between HCM and career expectations of employees Organizational career management (OCM) refers to the programs, processes and assistance that are provided by organizations to support and enhance the career success of their employees (Ng et al., 2005; Orpen, 1994). OCMs have undergone major changes as their roles have gradually shifted from “commanding and controlling” to “supporting”. Given that these career activities are primarily practiced in the hospitality industry, OCM is referred to as HCM in this study. HCM has become increasingly important in the career development of employees. Therefore, this study examines how the perceptions of young employees toward HCM practices affect their career expectations. Career expectations refer to the realistic career goals of an employee (Rojewski, 2005). Generation Y employees expect their mangers to act as mentors and role models in their workplace (Gursoy et al., 2013), and effective mentoring may help enhance the career competencies and leadership skills of these workers (Kong et al., 2012). According to Gottfredson (2005), individuals who seek or obtain useful career advice and information, as well as increase their competitiveness via education and training, tend to commit to their career expectations. Therefore, the perceived effective HCM activities, such as mentoring and training, may encourage employees to develop expectations for their future careers. Previous studies have found that perceived HCM positively contributes to the career competencies of an employee (Kong et al., 2012). The high level of career competencies indicates the enhancement of knowing-why, knowing-whom and knowing-how competencies of young employees, which may help them develop realistic career expectations and find effective ways to achieve their career goals. Young people also prefer lifelong learning, expect on-the-job training to stay marketable and proactively plan their own careers and professional development (Alch, 2000; Westerman and Yamamura, 2007). Therefore, HCM may help employees achieve individual goals and career expectations by providing them with effective career management activities, such as development programs and performance appraisals. Based on these arguments, it is predicted that:

149

H1. HCM may have a positive effect on career expectations. 2.2 Relationship between career expectation and job satisfaction Job satisfaction refers to the pleasurable or positive emotional state of an individual, which results from the appraisal of one’s job or job experience (Locke, 1976). In short, job satisfaction refers to the general attitude of employees toward their jobs. Job satisfaction is positively related to the work initiatives of employees, and serves as an important indicator of their organizational commitment or their intention to stay in an organization (Lam et al., 2001; Lam and Zhang, 2003). There are many factors contributing to employees’ job satisfaction, such as work–family supportive supervisors (Kong, 2013),

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internal branding (Heskett, 1994) and positive organizational environment (Murphy and Ensher, 2001). The work-related values, attitudes and behaviors of Generation Y employees may potentially interact with their job performance and prevailing hospitality management paradigms (Solnet and Hood, 2008). Given that these young employees consider their opportunities for career growth and advancement the most important factors of job consideration and performance (Kong et al., 2010), hotel managers should cater to the career needs and expectations of employees. Career expectation is important in the career persistence and job satisfaction of an employee. People with high career expectations can identify the jobs that they are interested in and can set clear career goals (Suutari and Makela, 2007). Individuals with high expectations tend to work in high-status occupations (Schoon and Parsons, 2002). People with high career expectations are willing to embrace their career goals, take on challenging jobs and develop job-related skills. In other words, young employees are encouraged to reach their full potential and to perform at their best when their abilities are matched with their career expectations (Martin and Tulgan, 2006). The consistency of career expectation and work values results in high work engagement (Macey and Schneider, 2008). All these factors may lead to higher performance levels and higher salaries, which, in turn, lead to a greater job satisfaction. Therefore, it is predicted that: H2. Career expectation may have a positive effect on job satisfaction. 2.3 Relationship between HCM and job satisfaction Unlike the previous generation, Generation Y employees possess different work values and job requirements. They identify responsibilities, compensation, work environment, advancement potential and free time as the important motivational factors (Crumpacker and Crumpacker, 2007). These differences drive young people to view the workplace in new ways and motivate employers to provide their young employees with tailor-made career management practices. Hotel managers should recognize the habits of young people who are entering the workforce and should be aware of the need to change their current practices. The perceived organizational support affects the job performance and service recovery performance of employees (Karatepe, 2013). For example, Generation Y employees aspire for clear directions and assistance from their managers in specific tasks, while expecting freedom in their job via empowerment (Morton, 2002; Zemke et al., 2000). Hotel managers may retain young employees in their workforce and improve job satisfaction via mentoring and training. By frequently communicating with their staff, hotel managers may give feedback on the job performance of their employees and guide their career development. Employees with high levels of mentoring and support tend to develop maximum efficiency and satisfaction in their careers (Rhoades and Eisenberger, 2002; Stamper and Johlke, 2003). These studies suggest that HCM may positively affect job satisfaction. H3. HCM may have a positive effect on job satisfaction. 2.4 Mediating effect of career expectations Career expectation may also mediate the relationship between HCM and job satisfaction. A mediator allows the focal independent variable to influence the dependent variable of interest (Baron and Kenny, 1986). Mediation comes in two forms, namely, full mediation


and partial mediation. On the one hand, full mediation is observed when the direct effect between the independent and dependent variable is not statistically different from zero, after controlling for the mediator variable. On the other hand, partial mediation is observed when the direct effect between the independent and dependent variable remains significant yet reduced after controlling for the mediator variable. Given that many previous studies have proven the direct positive contribution of HCM to job satisfaction (Karatepe, 2013; Kong et al., 2010; Stamper and Johlke, 2003), this study mainly examines the partial mediating effect of career expectation. As the externalization of professional values and the outlook of staff members toward their lives and the world career expectations have been found among the key predictors of work outcomes (Wu and Li, 2001). Adequate OCM practices, such as professional skills development and job rotation schemes, may meet the career expectations of employees and influence their career and job satisfaction (Cheng, 2010). Empirical evidence shows that OCM can enhance the career satisfaction of an individual by narrowing the gap between their aspirations and their actual career (Heslin, 2005). Therefore, HCM may help employees convert their unrealistic and unreasonable aspirations into realistic and feasible career expectations. Generation Y employees tend to search for intellectual challenges, aspire for success, strives to make a difference and seek employers who can advance their professional development. Hotel managers may help Generation Y employees set and achieve their personal goals and career expectations by providing them with effective career management activities, such as challenging tasks, promotions and opportunities to showcase their skills. After their career expectations are met, young employees tend to perform better in meaningful work tasks that can contribute to the development of a better world. Young employees who are working in professions that are closely related to their majors and to their career expectations may achieve a higher level of job satisfaction (Xu, 2013). Therefore, an effective career management may meet the career expectations of employees, which, in turn, leads to their job satisfaction. Based on the above analysis, it is predicted that:

Meeting career expectation 151

H4. Career expectations may mediate the relationship between HCM and job satisfaction. Figure 1 shows the proposed framework.

Career expectations H1

Hotel Career Management

H3

H2

Job Satisfaction

Figure 1. The proposed framework

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3. Research methodology 3.1 Research design This study targeted young employees working in four- or five-star hotels in China. This is because Generation Y has become the main workforce of the hospitality industry in China. Super (1957) identifies five stages in the life-circle career of an individual and finds that people who are aged between 22 and 30 years are in the exploration stage, where individuals preliminarily identify their careers and explore the possibility of a long-term career in their chosen occupation. Therefore, these individuals focus on their career expectations, which enable them to provide additional information for this study. A pilot test was conducted before the main survey. Participants were asked to share their perceptions toward HCM, their career expectations and levels of career satisfaction. There answers were measured on a 7-point Likert-type scale that ranged from 1 (strongly disagree) to 7 (strongly agree). 3.2 Instrument measurement HCM was measured by using items that were developed by Kong et al. (2011). A sample item included “I have attended training programs that may help develop my career”. By following the widely adopted scale development procedure of Churchill (1979), Kong et al. (2011) developed HCM measurement in four steps, namely, developing initial items, implementing purifying measures, collecting data and assessing the reliability and validity of the proposed measurement scale. All items of the HCM construct were found to be reliable and valid, which could serve as a sound instrument measurement for this study. Career expectations were assessed by using items from Wu and Li (2001). A sample item included “I want to have a stable job”. This scale was used in many previous studies (Guo, 2003; Liu, 2007; Wang, 2009), was reported to fit the characteristics of Chinese employees and achieved a high degree of reliability and validity. The job descriptive index of Smith et al. (1969) provided the basic items for measuring job satisfaction. An additional job in general scale was later added into the instrument to reflect the global, long-term evaluation of a particular job (Balzer et al., 1997). The revised instrument was used in this study to measure job satisfaction as perceived by employees in relation to the six facets of a job, namely, work itself, promotion, pay, supervision, coworkers and job in general. This instrument was considered highly reliable (Balzer et al., 1997) and could be applicable across a wide variety of demographic groups. This measurement scale was widely used by several researchers, such as Lam et al. (2001), and has been proven valid for the hospitality industry of Mainland China (Kong, 2013). A sample item included “I am satisfied with the promotion”. 3.3 Data collection A pilot test was conducted to assess the length, clarity, scale reliability, content and validity of questionnaire. The sample for the pilot test comprised 30 hotel employees, who contributed useful comments on the instrument scale. Minor modifications were made on the questionnaire, particularly on the wordings of questions, the length and the clarity of the questionnaire, after analyzing the pilot survey data. In terms of the sample size, structural equation modeling (SEM) requires a larger sample size as compared to other multivariate techniques because the sample provides


a basis for the estimation of sampling errors and SEM statistical algorithms are incompatible with small samples (Hair et al., 2009). Opinions on minimum sample sizes have been diverse. Anderson and Gerbing (1988) state that a sample size of 150 participants is sufficient for models with more than three indicators per factor, whereas Ghauri and Gronhaug (2005) state that a sample size of 200-500 participants is sufficient for a regional survey with no subgroup analyses. Stevens (1996) recommends a sample size of at least 400 participants to avoid model misspecification. This study decided on the sample size based on several factors, including multivariate normality, estimation technique, model complexity, amount of missing data and average error variance of the indicators (Hair et al., 2009). This study aimed to collect 400-500 completed questionnaires based on the recommended standards of Ghauri and Gronhaug (2005), and Stevens (1996). The main survey was conducted nationwide from January to February 2013. The respondents were selected via convenience sampling method. The researcher approached most of the surveyed hotels and contacted a key person from each hotel, such as the human resources manager or the marketing manager. The questionnaires were distributed and collected on the spot with the help of these key persons. A total of 500 questionnaires were distributed to employees who were working in four- and five-star hotels that were located in the main tourist cities of China, such as Beijing, Shanghai and Shandong. An average of 20-25 employees from each hotel participated in the survey. A total of 442 valid questionnaires were collected, which provide the data necessary for this study. The research ethic approval was obtained from the research committee of the Shandong University (Weihai) to maintain the confidentiality of the respondents. 3.4 Data analysis method The data were found to follow a multivariate normal distribution. SEM was applied in the data analysis by using AMOS software. SEM takes a confirmatory approach in analyzing a structural theory on some phenomenon (Byrne, 2001, p. 3). SEM is a useful statistical tool that can examine the extent to which the model fits the data and can determine the statistical significance of the hypothesized relationships. This methodology identifies structural relationships, especially those between latent constructs, by combining factor analysis and path analysis. Factor analysis, especially confirmatory factor analysis (CFA) (the measurement model), specifies the relationships between the observed indicators and their posited underlying factors, whereas path analysis (the structural model) specifies the causal relationships among the latent variables as posited by the underlying theories (Segars and Grover, 1993). SEM overcomes the individual limitations of factor and path analyses by combining these two statistical methods. Therefore, SEM becomes a powerful statistical tool for understanding the interrelationships among several latent variables. A two-stage SEM approach was used in this study to enjoy its comparative advantages over the one-step approach when a theory is only tentative (Anderson and Gerbing, 1988). The analysis procedure was conducted in the following four steps: (1) Each individual measurement model underwent several tests, including a brief descriptive statistics and reliability test. (2) The questionnaires were randomly divided into two equal sections for exploratory factor analysis (EFA) and CFA.


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(3) The overall measurement model was tested with all data. (4) The structural model was tested by running SEM to specify the relationships among the latent variables. This study also aims to examine the mediating effect of career expectation. This study followed the formula of MacKinnon et al. (1995) to test the mediating effect of career expectation, who calculated such effect as follows: indirect effect ⫽ a ⫻ b (where a is the path coefficient of the association between the exogenous variable and the mediator, and b is the path coefficient of the association between the mediator and the outcome). The significance level was examined by using the Sobel test. 4. Results The collected data were screened to ensure that the dataset met the requirements for SEM analysis. The dataset was examined for missing data because the processing of non-random missing data could produce biased statistical results (Hair et al., 2009). The outliers were then identified and omitted because they could lead to a biased mean and could affect the normal distribution (Field and Hole, 2003). The multivariate normal distribution of the data was eventually confirmed, which made them usable for further analysis. 4.1 Profile of respondents The demographic characteristics of respondents are as follows: 46.6 per cent of the participants were male and 53.4 per cent were female. A total of 84.8 per cent were aged between 20 and 30 years and had been working in the hotel industry for less than three years. As for the remainder of the employees, 5.7 per cent were aged below 20 years, and 9.5 per cent were aged between 31 and 40 years. Over 71.7 per cent of the respondents were working as staff members, and 24.7 per cent were working as managers in their respective hotels. In terms of education, 62.7 per cent of the respondents received university education, and 26.0 per cent graduated from professional or vocational schools. More than 51.3 per cent of the hotels were five-star hotels, and 48.7 per cent were four-star hotels. Table I presents the demographic characteristics of the respondents. 4.2 Goodness-of-fit indices The validity of the model must be assessed. Various measures have been developed to assess the ability of a model to represent the data. This section discusses the most commonly used model fit indices. 4.2.1 Chi-square (␹2) value. The chi-square value is a traditional measure of the differences between the observed covariance and estimated covariance matrices. However, chi-square values can be greatly influenced by the sample size, which results in the problems of fit. As a result, “findings of well-fitting hypothesized models, where the ␹2 value approximates the degrees of freedom, have proven to be unrealistic in most SEM empirical research” (Byrne, 2001, p. 81). Models are typically complex and have sample sizes that reduces the usefulness of the chi-square test as a model fit index (Hair et al., 2009). Byrne (2001) adds, “the Chi-square value is highly sensitive to sample size and thus should not be used as an indicator of goodness of fit between the model and the data” (Byrne, 2001, p. 284). However, researchers must always report the chi-square


Characteristics

Valid N

%

Gender Male Female

206 236

46.6 53.4

Age (years) Below 20 20-24 25-30 31-40 Above 40

25 261 99 42 15

5.7 59.0 22.4 9.5 3.4

Marital status Married Single Others

321 101 20

72.6 22.9 4.5

Educational level Secondary/high school Vocational/technical school College Bachelor’s degree Postgraduate

50 115 153 122 2

11.3 26.0 34.6 27.6 0.5

Years of working in the hotel industry (years) Less than 1 1-3 3-6 6-10 Above 10

161 184 59 17 21

36.4 41.6 13.3 3.8 4.7

Position Assistant general manager Department manager Supervisor Staff

16 21 88 317

3.6 4.8 19.9 71.7

value and the degree of freedom of their used models (Cattel, 1956; MacCallum and Browne, 1993). Therefore, other goodness-of-fit indices must be reported in studies regardless of chi-square results. Other goodness-of-fit indices have been developed because of the limitations of the chi-square value in assessing the model fit. These indices are generally classified into three groups, namely, absolute measures, incremental measures and parsimony fit measures (Hair et al., 2009). 4.2.2 Absolute fit measures. The goodness-of-fit index (GFI) is an absolute index that compares the hypothesized model with no model at all. A value close to l indicates a good fit (Hu and Bentler, 1995; Joreskog and Sorbom, 1993). The root mean square error of approximation (RMSEA) of Steiger and Lind (1980) has been recognized recently as one of the most widely used indices in covariance structure modeling (Byrne, 2001). RMSEA takes the error of approximation into account. RMSEA values less than 0.05 indicate a


Table I. Profile of respondents

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good fit, root mean square error of validation values between 0.08 and 0.10 indicate a mediocre fit and RMSEA greater than 0.10 indicate a poor fit (MacCallum et al., 1996). 4.2.3 Incremental fit measures. Unlike absolute fit indices, incremental or comparative fit measures assess the fitness of the estimated model relative to the alternative baseline model. Comparative fit index (CFI) is one of the most widely used indices; CFI value that is greater than 0.90 suggests a favorable fit (Bentler, 1992; Hair et al., 2009). 4.2.4 Parsimony fit indices. Parsimony fit indices, such as the parsimony normal fit index (PNFI), are specifically designed to identify which model among a set of competing models has the best fit relative to its complexity. Relatively high PNFI values represent a relatively better fit, which indicate that the index can be used in the same way as the normed fit index (NFI). PNFI values can be used to compare models with different complexities. These values range between 0 and 1, with 1 indicating a perfect fit. Although there is no simple rule to distinguish the favorable models from the poor models, several general guidelines have been established to determine the acceptability of the fit of a given model. Hair et al. (2009) suggest that a model must be sufficient to report three or four fit indices, including at least one incremental index and one absolute index, in addition to the chi-square value and degrees of freedom. Therefore, “reporting the Chi-square value and degrees of freedom, the CFI or non-normed fit index (NNFI), and the RMSEA will usually provide sufficient unique information to evaluate a model” (Hair et al., 2009, p. 672). Following the recommendation of Hair et al. (2009), this study reported the chi-square statistics and the associated degrees of freedom (df), CFI (or NNFI), GFI and RMSEA of the measurement and structural models. 4.3 Individual measurement model 4.3.1 EFA of measurement model. Scale reliability and EFA were first conducted to check the underlying dimensions of measurement items. Varimax rotation was conducted, and an eigenvalue of 1.0 was adopted to determine the factors with a cutoff factor loading of 0.40. The appropriateness of EFA was confirmed by the Kaiser–Meyer–Olkin (KMO) measure of sampling adequacy and Bartlett’s test of sphericity (p ⬍ 0.001). Consistent with previous study (Kong et al., 2011), three factors were extracted from items of HCM, namely, career appraisal, career training and career development. The three factors explained 66.67 per cent of the total variance. The Bartlett’s test of sphericity was significant, and the KMO measure of sampling adequacy was 0.87, indicating that the patterns of correlations were relatively compact and that generated distinct and reliable factors (Field, 2005). As shown in Table II, Cronbach’s alpha of the total scale was 0.93, and that for the three dimensions ranged from 0.82 to 0.86, exceeding the minimum standard for reliability (0.70) recommended by Nunnally (1978). The above analysis shows that the scales are internally consistent, and they can be used for further analysis. The KMO of job satisfaction was 0.88, and the result of the Bartlett’s test of sphericity was significant. The eigenvalue was 3.58, and all items explained 67.75 per cent of the total variance. It can be concluded that the items comprising the construct of job satisfaction were internally consistent and stable and formed a reliable scale together.


Item

Factor Eigen value Variance explained (%) Reliability alpha (␣)

HCM Factor 1: Career appraisal Career advice 360º appraisal Career discussion Clear feedback Induction

0.78 0.67 0.63 0.61 0.61

Factor 2: Career development Dual ladders Financial support Job rotation Job posting Succession plan

0.78 0.77 0.65 0.51 0.50

Factor 3: Career training In-house training Career workshop External visits and study

0.84 0.76 0.62

Job satisfaction Promotion Work itself Income Coworkers Supervision Job in general

0.86 0.83 0.82 0.82 0.78 0.77

3.03

23.31

0.93 0.86


2.99

23.04

0.82

2.64

20.31

0.82

3.39

67.75

0.88

Table III shows the results of EFA of career expectation. The KMO of career expectations was 0.89, and the result of the Bartlett’s test of sphericity was significant. Three factors were identified, namely, prestige factor, intrinsic value factor and extrinsic value factor. The Cronbach’s alpha of the three factors ranged from 0.77 to 0.88, exceeding the minimum standard for reliability (0.70) (Nunnally, 1978), indicating that all the items of career expectation are stable and formed reliable scales. 4.3.2 CFA of individual measurement model. The CFA was conducted to examine individual measurement models. The goodness-of-fit indices of each measurement model indicated an acceptable fit between the model and the sample data: • HCM model (␹2 ⫽ 261.4, df ⫽ 63, CFI ⫽ 0.94, GFI ⫽ 0.92, RMSEA ⫽ 0.08); • career expectation measurement model (␹2 ⫽ 568.13, df ⫽ 165, CFI ⫽ 0.91, GFI ⫽ 0.90, RMSEA ⫽ 0.08); and • job satisfaction model (␹2 ⫽ 15.3, df ⫽ 4, CFI ⫽ 0.99, GFI ⫽ 0.98, RMSEA ⫽ 0.08). The test statistic used in this study is the critical ratio (CR), which represents the parameter estimate divided by its standard error. It operates as a z-statistic in testing that the estimate is statistically different from zero. The absolute value of the statistic needs to be greater than 1.96 (Byrne, 2001). The CR value of HCM ranged from 13.85 to 19.12, that of career expectation ranged from 15.63 to 19.88 and that of job satisfaction

Table II. EFA results for hotel career management and job satisfaction

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Item Factor 1: Prestige factor Working in a company of large size Working in a company of high reputation Working in famous cities Establishing one’s reputation as an authority Factor 2: Intrinsic value factor Independent and freedom Challenging job Interest oriented To learn and to apply Bringing one’s ability into full play Fair opportunity and competition

Table III. EFA results for career expectation

Factor 3: Extrinsic value factor Well-paid Good welfare Stable job Education opportunities Opportunities for going abroad High social status Good working environment More promotion opportunities

Factor Eigen value Variance explained (%) Reliability alpha (␣) 2.84

14.64

0.77

3.58

21.33

0.85

4.39

25.40

0.88

0.73 0.72 0.71 0.67 0.79 0.72 0.54 0.51 0.51 0.44

0.59 0.66 0.77 0.68 0.42 0.43 0.70 0.63

Notes: KMO ⫽ 0.89; The Bartlett’s test of sphericity: chi-square ⫽ 2,160.69; df ⫽ 153; p⬍ 0.000

ranged from 13.71 to 19.79. All of the standardized loading estimates exceed 0.5, and they were statistically significant (as indicated by the CR values which are higher than 1.96). Average variance extracted (AVE) was used to test both convergent and discriminant validity. As shown in Table IV, the AVE values of the construct of HCM, career expectation and job satisfaction were all greater than 0.50, indicating a high level of convergent validity. In addition, the AVE of each construct was greater than the squared correlation coefficients for the corresponding interconstructs, which suggested satisfactory discriminant validity (Fornell and Larcker, 1981). Thus, the proposed measurement model was found to fit the data well, and the reliability and validity of the model were satisfactory. 4.4 Overall measurement model Once the individual measurement model was examined to fit the data well, the overall measurement model was tested. The goodness-of-fit indices (␹2 ⫽ 881.0, df ⫽ 286, CFI ⫽


0.91, GFI ⫽ 0.90, RMSEA ⫽ 0.07) indicated a fairly good fit between the model and the sample data. As shown in Table IV, the reliability of each construct ranged from 0.77 to 0.93, with all values exceeding 0.70. Hence, the overall measurement model fit the data well. 4.5 Structural model As the measurement model was found to be acceptable, the structural model was evaluated by using all the sample data. The model fit indices were as follows: ␹2 ⫽ 929.6, df ⫽ 281, CFI ⫽ 0.91, GFI ⫽ 0.90, NFI ⫽ 0.90, NNFI ⫽ 0.90, RMSEA ⫽ 0.07. The values indicated that the model represented a fit to the data. As shown in Figure 2, the path coefficient value and significance level indicated that the structural paths were both positive and significant (as indicated by CR ⬎ 1.96). Hence, all the direct positive relationships were supported. The model also proposed the mediating role of career expectation. Following the formulae of MacKinnon et al. (1995), the indirect effect was calculated as: indirect effect ⫽ a ⫻ b (where a is the path coefficient of the association between the exogenous variable and the mediator, and b is the path coefficient of the association

Constructs

HCM

PF

IV

EV

HCM PF IV EV JS Reliability AVE Mean SD

1.00 0.28 (0.08) 0.20 (0.04) 0.17 (0.03) 0.37 (0.14) 0.93 0.75 4.83 1.13

1.00 0.59 (0.35) 0.62 (0.38) 0.33 (0.11) 0.77 0.50 4.94 1.03

1.00 0.68 (0.46) 0.30 (0.09) 0.85 0.53 5.52 0.99

1.00 0.36 (0.13) 0.88 0.52 5.54 1.00


JS

1.00 0.88 0.60 Table IV. 4.82 1.08 Correlations (squared correlation), Notes: HCM ⫽ Hotel career management; PF ⫽ prestige; IV ⫽ intrinsic value; EV ⫽ extrinsic value; reliability, AVE and mean JS ⫽ job satisfaction; all are significant at the 0.01 level

Prestige factor

0.30

Intrinsic value factor

0.16

Hotel career management

0. 18

8 0.1

0.38

Extrinsic value factor

0.

51

0.89

Job satisfaction

Figure 2. Final structural model with path results

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160

between the mediator and the outcome). The significance level was calculated using the Sobel test. As three factors were identified from career expectation by running EFA, this study examined the mediating effect of the three factors. The results of the analysis of the mediating effect of prestige factor on the relationship between HCM and job satisfaction were: indirect effect coefficient ⫽ 0.05, t-value ⫽ 2.16, and p-value ⫽ 0.03. As the indirect effect coefficient was positive and significant (p ⬍ 0.05), the mediating effect of prestige factor was supported. Similarly, the results (indirect effect coefficient ⫽ 0.15, t-value ⫽ 1.98, p-value ⫽ 0.03) showed that intrinsic value factor mediated the link between HCM and job satisfaction. The indirect effect coefficient (0.27), t-value (2.05) and p-value (0.04) also proved the mediating effect of extrinsic value factor on the relationship between HCM and job satisfaction. Thus, the three factors of career expectation partially mediated the relationship between HCM and job satisfaction. 4.6 Hypothesis testing As the model was found to fit the data fairly well, hypothesis testing was conducted. The hypothesis was tested by examining the path coefficient between the exogenous variable perceived HCM and the endogenous variable career expectation and job satisfaction. The test statistic used here was the CR, which indicated whether the parameter estimate is statistically different from zero (Byrne, 2001). As shown in Table V, all the path coefficients were statistically significant (as indicated by CR ⬎ 1.96) and validated. The path coefficient value and significance level together indicate that the structural paths are both positive and significant, and thus, that all of the hypotheses were supported. 5. Theoretical and practical implications 5.1 Overall model performance The findings of this study supported the proposed model, which showed relationships among perceived HCM, career expectation and job satisfaction. All hypotheses were supported, and the proposed structural model had a strong statistical ability to predict the determinants of the career expectation and job satisfaction of Generation Y employees in the hospitality industry. The findings of this study provided strong support for the proposed structural model and the posited relationships. To summarize, the perceived HCM positively contributed to the career expectation and job satisfaction of young employees. Career expectation was positively related to job satisfaction and acted as a mediator between HCM and job satisfaction. This finding highlighted the importance of organizational and individual factors in the career management of employees, which may lead to a higher level of job satisfaction. Career management should be jointly practiced by the organization and the employee. The three dimensions of career expectation were all positively related to job satisfaction. The extrinsic value factor contributed the most to job satisfaction (89), which was followed by intrinsic value factor (0.51) and prestige factor (0.18). These results were consistent with those of the previous study, which identified both intrinsic and extrinsic motivators as the valued factors of a career in the hospitality industry (Kim et al., 2010, 2009). The findings may provide both theoretical and practical implications, which are outlined below.


Hypotheses/path

Coefficient

t-value

Results

H1. Perceived HCM may have a positive effect on career expectations HCM ⬎ Prestige factor 0.30 HCM ⬎ Intrinsic value factor 0.16 HCM ⬎ Extrinsic value factor 0.18

5.58** 4.61** 4.27**

Supported Supported Supported

H2. Career expectation may have a positive effect on job satisfaction Prestige factor ⬎ Job satisfaction 0.18 Intrinsic value factor ⬎ Job satisfaction 0.51 Extrinsic value factor ⬎ Job satisfaction 0.89

4.07** 2.33** 2.83*


H3. HCM may have a positive effect on job satisfaction

3.58**

Supported

0.38


H4. Career expectations may mediate the relationship between HCM and job satisfaction Mediating effect of prestige factor on relationship between HCM and job satisfaction 0.05 2.16* Mediating effect of intrinsic value factor on relationship between HCM and job satisfaction 0.15 1.98* Mediating effect of extrinsic value factor on relationship between HCM and job satisfaction 0.27 2.05*


Notes: ␹2 ⫽ 929.6; df ⫽ 281; CFI ⫽ 0.91; GFI ⫽ 0.90; RMSEA ⫽ 0.07; * Parameter estimates significant at p ⬍ 0.05; ** Parameter estimates significant at p ⬍ 0.01

5.2 Theoretical implications Theoretically, this study explores the relationship among the HCM, career expectations and the job satisfaction of young employees. Although many studies have stated that Generation Y employees are career-oriented, these claims are primarily supported by conceptual work. Few studies have explored the outcomes that are produced after these employees meet their career expectations. This empirical study concentrates on the career expectations of young employees, as well as the influencing factors and effects of such expectations. The results of this study may provide useful information for other career literature and Generation Y management theories. This study also contributes to the literature by identifying the mediating effect of career expectation. Only few studies have explored the mediating effect of career expectation, despite its importance in the career choice and satisfaction of an individual. The findings of this study indicate that aside from directly influencing job satisfaction, career expectation also mediates the relationship between the perceived HCM and the job satisfaction of young employees. Given the scarcity of research on career expectation in China, the findings of this study may serve as a foundation for future research. This study contributes new findings by examining the mediating effect of the three dimensions of career expectation. These dimensions are all found to have mediating effects, which may provide a relational approach that emphasizes the function of the “prestige factor”, “intrinsic value factor” and “extrinsic value factor” of career expectation. The results may also provide a new research perspective toward career expectations. The results of this study also provide new findings of Generation Y management theories. Because of distinct characteristics, Generation Y management proposes a great

Table V. Hypotheses testing


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challenge for both managers and researchers. This study explores the predictor and outcome of career expectations and also highlights the importance of meeting career expectations. The findings may enrich the knowledge of Generation Y and provide useful guidance for further research.

162

5.3 Practical implications Practically, this study may serve as a guide for managers and policymakers. First, this study identifies several ways on how to respond to the career expectations of young employees. The employees in the present workforce of China, have mostly come from Generation Y, who are known for their high career expectations and valuing career development. Meeting their career expectations is a critical factor of enhancing job satisfaction of young employees. The meditating effect of career expectation also highlights its importance in the career management system. When designing policies that support the career expectations of employees, hotel managers must identify which factor is important in enhancing employees’ job satisfaction level. This study identifies the function and the relative importance of the three factors of career expectation. Extrinsic and intrinsic value factors are found to contribute more to job satisfaction than prestige and stability factors. Therefore, hotel managers should provide their employees with a stable working environment and emphasize the intrinsic value of their employees. Aside from providing high compensation, the provision of opportunities for career growth and the development of a favorable, good working environment are also important motivational factors for young employees. Consistent with previous studies, such as that of Maxwell et al. (2010), this study finds that young employees emphasize career factors, such as promotion, job security and education opportunities. Hotel managers may match the career expectations of their young employees and enhance their job satisfaction by providing them with tailor-made career activities, which lead to a win-win situation for both managers and employees. Second, this study highlights the importance of practicing effective career management activities. The findings of this study confirm the importance of HCM on the career expectation and job satisfaction of employees. Therefore, managers should practice effective career management activities to cater to the expectations of their young employees. Unlike those from previous generations, Generation Y employees emphasize the value of strong leadership and expect their managers to act as their mentors (Gursoy et al., 2013). To cater to the different generational characteristics of their employees, hotel managers should develop intergenerational training programs and offer tailor-made mentoring to their young employees. The provision of effective career management activities enables hotel managers to support the career development of their employees, help them set up realistic career expectation and enhance their job satisfaction. Third, this study may help hotel managers retain their qualified staff members. The results suggest that supportive career activities greatly influence employee career expectation and job satisfaction of employees. Therefore, hotel managers can effectively attract and retain qualified staff members by catering to their career expectations, help them establish their career goals and provide them with a clear picture of their career development. Employees tend to engage themselves further in their work and enhance their organizational commitment, when they perceive that their organizations are supporting their careers. Consistent with previous studies, this paper identifies


enjoyable and challenging jobs as important factors of job satisfaction (Brown et al., 2014). Therefore, hotel managers must structure their work such that the Generation Y employees can be attracted to and remain in the hospitality industry. Finally, the findings of this study highlight the importance of providing creative management activities to Generation Y employees. Generational differences are critical in determining management practices in the workplace. Therefore, hotel managers must understand and respond to the characteristics of their young employees to help them in their career development and motivate them in their jobs. Aside from career development and job engagement, in a way, this is attractive to them. For example, in addition to career development, this study finds that Generation Y employees valued enjoyable work and a pleasant working environment, which are consistent with the findings of previous research concerning careers in general (Brown et al., 2014), and those in the hospitality industry (Choi and Kwon, 2013). These suggestions may help hotel managers provide their Generation Y employees with enjoyable careers. 6. Limitations and suggestions for future study One limitation of this study is the use of self-reported data in the cross-sectional design. The participants filled out the questionnaires themselves, which might give way to untruthful responses. Future studies can enhance the reliability of the data by exploring the career expectations of employees and the effects of such expectations from other perspectives, such as those of managers and supervisors. Another limitation of this study is the use of the convenience sampling method. A reasonable broad sample was not obtained for this study because participants were selected based on their accessibility. Future studies are encouraged to identify their sample via probability sampling methods. This study also ignores the influence of demographic factors on career expectation and job satisfaction. Previous studies have found that people of different ages, education levels and salary levels develop varying career expectations (Greenhaus and Parasuraman, 1993; Leslie and Ingrid, 2012). Greenhaus et al. (1990) state that race and gender can also influence the organizational experience, job performance and career outcomes of employees. These arguments may be explored further in future studies. Given that China is a huge country that comprises 56 different nationalities, future studies have plenty of room to determine the influence of different races and nationalities on careers. Therefore, follow-up research may be conducted to analyze the effect of demographic factors on career expectations, whose findings may provide detailed information and help hotel managers in developing tailor-made career management activities. Given that race and gender can predict job performance and career outcomes (Greenhaus et al., 1990), the gender differences in career expectations in China should also be identified. Although women who are working in the hospitality industry comprise a significant proportion of the labor force, only a few of them have reached at top managerial positions (Cooke, 2005). Therefore, future studies should determine whether existing differences occur between male and female employees in terms of their career expectations and job satisfaction. Future studies may investigate such differences by comparing the career expectations of male and female employees, which can provide valuable implications for practical management.


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