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The practise of strategic compensation in Malaysian five-star beach resort hotels

Ahmad, Rozila and Scott, Noel and Solnet, David (2010) The practise of strategic compensation in Malaysian five-star beach resort hotels. In: The First Seminar On: Entrepreneurship and Societal Development in Asean (ISE-SODA 2010) "Achieving Regional Growth through Entrepreneurship Education", 27th February-1st March 2010, City Bayview Hotel Langkawi. ASEAN Universities Consortium of Enterpreneurship Education (AUCEE), pp. 167-177. ISBN 983-2078-36-4

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The development of a sound management and staff compensation plan is crucial for business success. This study assesses the relevance of strategic compensation in developing countries by investigating the strategic compensation practise in Malaysian five-star hotels. Focusing on managerial and non-managerial employees, it finds that there is considerable variation in the extent of strategic compensation adoption in these hotels despite the similarities of their target market, star rating and external environment. The adoption of strategic compensation also varies within the hotels to match the system with employees' perceived strategic value. While some hotels adopt compensation based on seniority, others compensate managerial employees based on performance with some preference for the later. Although the findings raises some issues which requires future quantitative research, the present findings provide some suggestions on how to improve the compensation systems for five-star beach resort hotels in Malaysia and potentially in other countries with similar environment such as Thailand and Indonesia.

Item Type: Book Section
Additional Information: This seminar is collaboration between The Co-operative and Entrepreneurship Development Institute (CEDI) of Universiti Utara Malaysia; National Entrepreneurship Institute (INSKEN); Universiti Padjajaran (UNPAD), Bandung; Universiti Komputer Indonesia (UNIKOM) and Prince Songkla of University (PSU), Thailand.
Uncontrolled Keywords: Compensation, strategic human resource management, environmental fit, hotel industry, contingency theory and Malaysia.
Subjects: G Geography. Anthropology. Recreation > GV Recreation Leisure
Divisions: School of Tourism, Hospitality & Environmental Management
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 22 May 2011 07:19
Last Modified: 24 Apr 2016 06:41
URI: http://repo.uum.edu.my/id/eprint/2975

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