Impact of organizational mistreatment on employee performance in the hotel industry

Abstract

Purpose

The purpose of this paper is to investigate the factors that can hinder employee performance. Thereof, this study also investigates the mediating role of perceived incivility and the moderating role of psychological capital (PsyCap) to address “why” and “when” employee performance is undermined.

Design/methodology/approach

Data from 485 employees of hotel industry were gathered in two-time intervals (T1 and T2) by conducting a survey. The time interval gap between Time 1 and Time 2 was 15 days. The data of the respondents were analyzed by using Smart PLS3.

Findings

The results revealed that injustice perceptions led to perceived incivility, while organizational dehumanization and perceived incivility decreased employee performance. Perceived incivility mediated the relationship between interactional injustice and employee performance. Moreover, PsyCap played the moderating role in curbing the effect of stressor.

Practical implications

This study offers hotel managers a valuable insight to formulate effective strategies that can enhance performance and PsyCap amongst their employees, aside from minimizing stressors within the context of hotel industry.

Originality/value

This research contributes to literature by focusing on factors that can undermine employee performance. The study outcomes have essential implications for students, researchers and practitioners. The valuable insights facilitate researchers to focus on factors that lead to deterioration of employee performance, instead of investigating the often-sought employee performance increment factors. This study aids fresh research endeavor by establishing a new avenue for investigation. Hotel managers may find this study insightful to minimize adverse stressors that could deteriorate employee performance.

Citation

Sarwar, A. and Muhammad, L. (2021), "Impact of organizational mistreatment on employee performance in the hotel industry", International Journal of Contemporary Hospitality Management, Vol. 33 No. 2, pp. 513-533. https://doi.org/10.1108/IJCHM-01-2020-0051