REWARD SYSTEMS AND CULTURAL CHANGE IN THE HOSPITALITY INDUSTRY: AN ORGANIZATIONAL APPROACH

Abstract

The purpose of this paper is to create prototype models capable of measuring and depicting the impact of reward systems on specific elements that support a process of organizational culture change (organizational systems, internal mechanisms and structures, supportive management role and organizational commitment to specific goals) in the hospitality industry. The literature review led to the creation of a prototype questionnaire, which was used to collect data from a random and proportionally stratified, representative sample of 207 general managers or human resources managers of Greek luxury hotels. For the analysis of the collected data, Exploratory and Confirmatory Factor Analysis was used. The above led to the creation and validation of a second-order latent variable model as well as two latent constructs, that allowed the scientifically novel modelling of the impact of reward systems on several change-supportive elements in processes of changing a hotel’s organizational culture.