Minimum Wage and Productivity: The perspectives and implications of Malaysian hotel employees
This paper explores the effect of the newly introduced National Minimum Wage (NMW) on the productivity of Malaysian hotel employees based on the insight of several domains which include the analysis of government policy, literature reviews, fieldwork and stakeholder views. The fieldwork includes an extensive employee quantitative survey research to explore their responses to the potential impact of the NMW on their productivity. The findings of this study highlighted the understanding of the productivity concept based on the employees’ understanding and perspective. Based on the findings of this research, in terms of productivity, it is clear that the employees are ready to respond positively to the changes in their work pattern provided wages are increased. This thesis makes a significant contribution towards assisting the key players in the hotel industry (policy makers, hotel associations, trade unions, employers,and employees) to develop a more strategic and effective approach to the implementation of the NMW.
© 2016. The Authors. Published for AMER ABRA by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.
Keywords: Minimum Wage, Productivity, Hotel industry, Wages
Acur N. ,Englyst L. Assessment of strategy formulation: how to ensure quality in process and outcome. International Journal of Operations & Production Management 2006; Vol. 26: 69-91.
Aminuddin, M. (2006). Malaysian Industrial Relations and Employment law (5th edition):Mc Graw Hill.
Anderson E. W., Fornell C. ,Rust R. T. Customer satisfaction, productivity, and profitability: Differences between goods and services. Marketing Science 1997; Vol. 129-145.
Ball, S. D., Johnson, K., & Slattery, P. (1986). Labour productivity in hotels: an empirical analysis. International Journal of Hospitality Management, 5(3), 141-147.
Card, D., & Krueger, A. B. (1995). Myth and measurement: the new economics of the minimum wage: Princeton University Press.
Card, D., & Krueger, A. B. (1995). Time-series minimum-wage studies: a meta-analysis. The American Economic Review, 238-243.
Dixon, J. R. (1990). The new performance challenge: Measuring operations for world-class competition. Irwin Professional Pub.
Drucker P. F. Managing for business effectiveness. Harvard Business Review 1963; V
Elangkovan, K. (2012). Minimum wage laws in Malaysia: An answer to the increasing rate of unemployment, International Journal of Academic Research in Economics and Management Sciences, 1(5), p. 135-146
“”. E. P. A. The Concept of Productivity and Aims of the National Centres. Rome Conference 1958
Fitzsimmons, J. A., & Fitzsimmons, M. J. (1998). Service management: Operations, strategy and information technology. In Irwin-McGraw Hill (Ed.). Boston.
Goh, S. K., & Wong, K. N. (2010). Analyzing the productivity-wage-unemployment nexus in Malaysia: Evidence from the Macroeconomic Perspective. International Research Journal of Finance and Economics(53).
Howard, G., & Paska, J. (2000). The PNGTUC Submission to the 2000 MWB. 2000 MWB Proceedings, Port Moresby.
Imbun, B. Y. (2008). Dynamics of wage fixation in a developing economy: The case of Papua New Guinea: Nova Science Publishers.
Johnson, K., Ball, S., Witt, S., & Moutinho, L. (1989). Productivity measurement in hotels. Tourism marketing and management handbook., 319-323.
Jones, P., & Lockwood, A. (1989). The management of hotel operations: Cassell Ltd.
Kaplan R. S. ,Norton D. P. The balanced scorecard: translating strategy into action, Harvard Business school press; 1996.
Kirikal L. ,Tallinna T. Productivity, the Malmquist index and the empirical study of banks in Estonia, Tallinn Technical University Press; 2005
Levantis, T. (2000). Papua New Guinea: employment , wages and economic development. Asia Pacific Press,Canberra.
McGavin, P. A. (2001). Labour transformation in Papua New Guinea: Institute of National Affairs.
McMahon, F. (1994). Productivity in the hotel industry. In Wiley (Ed.), In A. V. Seaton (Ed.), Tourism: The State of the Art (pp. 616-625). Chichester, England.
Mill, R. C. (2008). Managing labour productivity. Handbook of hospitality operations and IT, 269.
Neely, A., Gregory, M., & Platts, K. (1995). Performance measurement system design: a literature review and research agenda. International journal of operations & production management, 15(4), 80-116.
Ninth Malaysia Plan 2006-2010. Percetakan Nasional Malaysia Berhad, Kuala Lumpur.
Organization A. P. In-country Training Program for Productivity and Quality Practitioners In IRAN. 2008.
Pickens, D. (2006). Productivity-the wider context. Chartered Accountants Journal, 85(3), 18.
Pritchard R. D. Productivity measurement and improvement: Organizational case studies, Greenwood Publishing Group; 1995.
Rantanen H. The effects of productivity on profitability: a case study at firm level using an activity-based costing approach. LTKK Tieteellisiä julkaisuja-Research Papers 1995
Rantanen H., Kulmala H. I., Lönnqvist A. ,Kujansivu P. Performance measurement systems in the Finnish public sector. International Journal of Public Sector Management 2007; Vol. 20: 415-433.
Riley, M. (2000). Managing People: A Guide for Managers in the Hotel and Catering Industry: Butterworth-Heinemann.
Saget, C. (2000). Can the level of employment be explained by GDP growth in Transition Countries (theory versus the quality of data), ILO Development Policy Group. ILO, Geneva.
Saget, C. (2001). Minimum wage–Does it cut poverty. ILO, 2004, 111-115.
Sekaran, U. (2002). Research methods For business. New York: John Wiley & Sons, Inc.
Schroeder, R. G. (1985). Operations management: Decision making in operation function (2nd ed.). New York.
Sedighi, M., & Mehrdad, A. G. (2014). The Productivity Indexes at Islamic Azad University, Hamedan Branch, Iran. Procedia-Social and Behavior Sciences, 131, 244-247.
Welch, F. (1993). The Minimum Wage. Jobs and Capital, 2.
Witt, C. A., & Witt, S. F. (1989). Why productivity in the hotel sector is low. International Journal of Contemporary Hospitality Management, 1(2).
How to Cite
eISSN: 2398-4287 © Year. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.