An examination of current compensation and performance appraisal practice among hotel employers in Malaysia: A preliminary study - Theory and Practice in Hospitality and Tourism Research - page 12

Table 3. The distribution of respondents' length of
employment with their current employer by gender.

Table 4. The result of the unrotated factor extraction
from the 4 questions representing compensation.

Kaiser-Meyer-Olkin Measure of Sampling Ade-
quacy = 0.76 Bartlett's Test of Sphericity = 280.325, Sig-

nificance = .00. Source: Data analysis 2013.

Table 5. The result of varimax rotated factor matrix for
compensation.

Source: Data analysis (2013); LD: Factor Loading.

it was also found that the lowest distribution of
respondents' length of employment with their cur-
rent employer is more than 5 years, which repre-
sent 5.7 percent of the sample. Table 3 shows the
overall distribution of the hotel employees' length
of employment with their current employer.

of compensation. The unrotated factor solution
extracted shows Eigenvalues is equal to 1. Accord-
ing to Table 4, these four components account for
100 percent of the explained variance with the first
factor explaining 62.4 percent of the variance.
The pattern loadings, factor structure and factor
interpretation are shown in Table 5. The compo-
nents were defined by the variables with signifi-
cant factor loadings of 0.60 and above. Reliability
tests on each of the factors indicated a Cronbach's
Alpha coefficient above 0.80. Thus, all the 4 ques-
tions are all accepted. Based on the analysis, it was
found that the financial rewards in the employees'
hotel consist with their expectation (0.83) and their
promotion is based on seniority (0.72). Respond-
ents reported that their employer has elaborate/
comprehensive flexible benefits scheme (0.85).
It was also found that, their employer constantly
reviews and updates the range of benefits to meet
their needs (0.75). Therefore, the highest question
loading (LD) is the item 3 that has LD = 0.85 and
it can be proposed that the employer in the hotel
industry provides a comprehensive benefits scheme
for their employees.

4.3 Principal Component Analysis (PCA)
The analysis focused on 7 questions that repre-
senting two dimensions, which are; i) compensa-
tion (4 questions) and ii) performance appraisal
(3 questions). Raw data had undergo three types
of analyses and these are; i) principle component
analysis ii) reliability and validity testing and iii)
the Cronbach's Alpha value to assess the consist-
ency of each questions. Based on Hair, Anderson,
Tatham, and Black (2004), there are two possible
multivariate methods which can be used to identify
the importance of each dimension. It was deemed
important for multivariate analysis to be conducted
in this study as a means to explore the significant
among the questions.

4.4 Compensation
Based on the analysis, the Kaiser-Meyer-Olkin
value of 0.76 exceeded the recommended value of
0.60 and Bartlett's Test of Sphericity and, there-
fore, it is statistically significant (Hair, et al., 2004).
This shows that there is a high degree of interre-
lationship between the questions within the scope

4.5 Performance appraisal
Based on the data analysis, the Kaiser-Meyer-Olkin
value of 0.70 exceeded the recommended value of
0.60 and Bartlett's Test of Sphericity and hence, it