A CASUAL RELATIONSHIP MODEL OF COMPENSATION TOWARD PERFORMANCE OF PERSONNEL IN HOTEL INDUSTRY IN WESTERN REGION, THAILAND

Abstract

The purposes of this research were to study the casual relationship of compensations toward performance of personnel in hotel industry in western region of Thailand, to study direct relation, indirect relation and total relation of the casual relationship model of compensation toward performance of personnel in hotel industry in western region of Thailand, to check harmonization of the model with empirical data, to develop the casual relationship model of compensations toward performance of personnel in hotel industry in western region of Thailand. This is a mixed method research. The populations were personnel who are working in hotel industry in western region of Thailand. The sample sizes for quantitative research were 392 personnel in the hotel industry. Questionnaires were used for data collection. LISREL program and SEM technique were employed for data analysis. For qualitative approach, key informances were 8 executives of 8 hotels, one per each province. Data collection came up from focus group forum, semi - interviewed forms were used for getting opinion of each participant and then select relevant topic for discussion.

The results showed the causal model of compensation with the performance of personnel working in the Hotel Industry in the western part of the country. The researchers have developed concepts and theories that are in harmony with the empirical data. The index harmonized with a 6 index and passed the acceptance criteria of the c²/df = 0.616, CFI = 1.00, GFI = 1.00, AGFI = 0.98, RMSEA = 0.000 and SRMR = 0.011, therefore concluding the model had a causal relationship with the compensation paid for the performance of personnel working in the Hotel Industry had appropriate harmony with the empirical data. The model developed by researcher is PAY-P Model (Payment of Performance Model) which includes four core elements and fourteen sub-elements as follows: (1) The organizational climate (OCL) has 6 sub-components. (2) The business environment (BEN) has two sub-components. (3) The Payment (PCO) has three subcomponents and (4) The performance (PER) has three sub-components.