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Topic: ORGANIZATIONAL CULTURE AND CUSTOMER RETENTION IN SELECTED HOTELS IN PORT HARCOURT, RIVERS STATE.

Ref.Code: UPW-PT-0e72b649e1Institution: UNIPORT

CHAPTER ONE INTRODUCTION 1.1 Background to the study. Organizations today are ever changing their business environment to overcome challenges posed by macro and micro economic volatilities, stiff competition and technological advancement, as well as social changes. Firms now pay particular attention to customers’ satisfaction and retention as a crucial strategy for organizational sustainability. The Merriam Webster (2003) dictionary defines Organisation as an organized group of people with a particular purpose such as business or government department. The demand from every organization is a derived demand earmarked to optimize profit, sustain income and survive amidst challenges at all cost. Thus organizations hire professionals because of real or anticipated need for their services to ensure the attainment of organizational main objective of customers’ retention. Most organizations realized that the success of any organization depends on the value they place on customers (Chinonye, 2015) One way they attempt to achieve this value is closely linked to and greatly affected by their Organisational Culture. Organizational culture often work in consonance with and strongly influences activities that aid customers retention along with service prompt, courtesy, personal relationship, handling of complaints, environmental hygiene, prices placed on customers services and complaints. Most Hotels today are out of business basically because of the low value they attach to customers retention. The values of the price attached to the services rendered are not properly addressed as most hotel price rates are relatively high. The same applies to the quality of their services, frequent replacement of their staff and general security. Mclaughlin (2003) wrote that Organisational culture is a system of shared assumptions, values and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act and perform their duties. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behaviour of the members of the organization (Mclaughlin: 2003). To an extent, Organizational culture dictates how employees dress, act and perform their jobs. However, culture is a broad term that addresses belief. The values of price, quality of services, staff retention and security is key to defining culture in this context Customer retention refers to the activities and actions companies and organizations take to reduce the number of customer defections. The goal of customer retention programs is to help companies retain as many customers as possible, often through customer loyalty and brand loyalty initiatives. It is important to remember that customer retention begins with the first contact a customer has with a company and continues throughout the entire lifetime of the relationship. While most companies traditionally spend more money on customer acquisition because they view it as a quick and effective way of increasing revenue, customer retention often is faster and, on average, costs up to seven times less than customer acquisition. Selling to customers with whom an organization already has a relationship is often a more effective way of growing revenue because companies don’t need to attract, educate, and convert new ones if the old ones are retained. Business Dictionary (2013) defines a Hotel as commercial establishment providing lodging, meals, and other guest services. In general, to be called a hotel, an establishment must have a minimum of six letting rooms, at least three of which must have attached (ensuite) private bathroom facilities Hotels are service organisation which (customers) provides people (customers) with comfortable but non- permanent accommodation. In the past hotel businesses served limited function but now they function as business exchange centres, centre for socialization, places of public assembly, deliberation, political meetings, vacations, church services and several other purposes. This broaden scope of business has a number of implications and challenges including security, hygiene and personal relationships. These hotels which have built strong culture to cater for these stand better chance of retaining their customers and enjoying better patronage the those who have not. It goes beyond having facilities and technology. Those that recognize that the customer is at the hub of the firm and profit are more likely to do well. Another important component is the staffing component. Organization that have a good culture of caring staff and strengthening staff commitments are likely to retain customers because more often than not it is the staff that deal directly with the customer. In cases where labour turnover is high and customers have to deal with employees each time , they are not likely to remain. Organisational culture can be conversely as weak or strong depending on their ability to secure staff. 1.2 Statement of the Problem Organizational culture encompasses values and behaviours that contribute to the unique social and psychological environment of an organization. Organisational cultures exist where staff responds to needs because of their alignment to organizational values. Strong organisational values help firms operate like well-oiled machines, engaging in outstanding business with only minor adjustments to existing procedures as needed. Customers consistent patronage and profitability remains the indicators for measuring the values of price, quality of services, staff retention and security of Hotels. Most Hotels in Rivers state today are expressing serious challenges in maintaining and strengthening their organisational values. This is so because Hotels lack critical values of maintaining steady price rates, quality service, staff retention and security. The price rate of using the services of some hotels are relatively very high compared to the current economic situation especially in the face of the present day economic recession ravaging the country. The customers desire to retain the services of a hotel lies on their consistent patronage and this measure the values for the price or amount they are willing to part with. Most Hotels operators still do not see the need to cut down the cost of their price rates rather they are increasing these rates on almost daily basis making customers patronage very difficult and at the same time leading to their own dwindling profits. Basically, the measure of customers retention is carried out based on customers patronage and the profit made by Hotels. When Hotels begin to express dwindling patronage, it affects their profitability and ability to remain in business. Most customers who cannot patronize are compelled to take to alternatives. Recent record show that the level of patronage in some first grade hotels such as Hotel Presidential, Port Harcourt The Novotel Hotel, Port Harcourt The Elkan, Terrace, Port Harcourt. The Elkan, Terrace, Port Harcourt. Sparkyln Hotels &Suites, GRA, Port Harcourt. Southern Star Hotel & Towers, Port Harcourt Golden Tulip Hotels, Port Harcourt Swiss International Mabise, Port Harcourt and Dannic Hotel, Port Harcourt have drastically reduced because these hotels maintain their high price rate of lodging and other services in spite the present harsh reality of recession. In terms of quality, most hotels have reduced the quality of the services rendered as a result of the high cost of managing the hotel as a business. The low patronage of customers has forced many hotels to experience low profits and this has led to many completely folding up. This is because most customers complained of poor services in terms of quality. Similarly, most first grade hotels now have lower ranking because of their inability to retain their staff due to the present financial situation in the country. Customer patronage has been relatively very low leading to poor profits to the hotels. This have also affected their operations as most hotels are forced to prone down on the numbers of the managers, supervisors and other staff they have. This action definitely have affected their customers as customers who are used to them are now exposed inadequate services or attention since the quality of services is measured by consistent customers patronage. Security has also had its fair share of the challenges of managing hotels and encouraging customers patronage. The value of providing 24 hours, 7 days in a week security in most hotels today have become a mirage as most hotels are struggling to meet the high cost of sustaining their businesses due to low profit occasioned by low patronage and paying little or no attention to improving the values of security. According to O’Farrell (2006), where there is weak culture, there is little alignment with organizational values and control must be exercised. Conversely, where organisation culture of customers’ retention is strong, there is expected to be optimum patronage and high turnover. From the above therefore, the value of price, quality, staffing, and security in optimizing customers’ retention is still lacking, as most Hotels still have not responded strongly and adequately to these organisational values yet due to the present economic recession. The problem of lack of strong organisational value affects organisations operating in the service sector such as Hotels since members of these organizations are responsible for delivering the hospitality service and ensuring customers retention. A lot of contending issues explains why the organisational values in hotels today influence customers’ decision to continue to patronize hotels or not. Hotels still have challenges managing customers’ retention as a result of value deficiencies in price control, quality, staffing, and security. The high price menu of first grade hotels in Rivers state are very high, coupled with their poor services, inability to retain staff and general security as a result of weak values accounts for poor customers’ retention forcing some of these hotels to close down indefinitely. As a result of the above, it is therefore based on the above, that the researcher has chosen to examine the interplay of organizational values independent variables such as Price, Quality, Staff consistency and Security. This study is therefore intended to investigate the relationship between the values for price, quality of service, staff retention, security and Customer retention in selected Hotels in Port Harcourt, Rivers state. 1.3 Conceptual framework. Fig .1.1 Researcher conceptual model/ framework of the relationship between the measures of Organisational values and customers retention as well as moderating variable. Researcher Conceptualized model,2016. 1.4 Aim and Objectives of the study. The aim of the study is to investigate organisational culture and customer retention in selected Hotels in Port Harcourt, Rivers state. In specific terms, the objectives of this study are: 1. To investigate the relationship between the measure of the value for price and patronage. 2. To investigate the relationship between the measure of the value for price and profitability. 3. To find out the relationship between the measure of the value for quality service and patronage. 4. To find out the relationship between the measure of the value for quality service and profitability. 5. To examine the relationship between the measure of the value for staff consistency and patronage. 6. To examine the relationship between the measure of the value for staff consistency and profitability 7. To determine the relationship between the measure of the value for security and patronage. 8. To determine the relationship between the measure of the value for security and profitability. 1.5 Research questions 1. How do the value for price measures patronage? 2. What is the relationship between the measure of the value for price and profitability? 3. What is the relationship between the measure for value for quality services and patronage? 4. Is there a relationship between the measure of the value for quality services and profitability? 5. Is there a relationship between the measure of the value for staff retention and patronage? 6. Is there a relationship between the measure of the value for staff retention and profitability? 7. How do the measure of the value for security relate with patronage? 8. What is the relationship between the measure of the value for security and profitability? 1.6 Research hypotheses The following alternative hypotheses will be tested to guide this study. Ho1: There is no significant relationship between the measure of value for price and patronage. Ho2: There is no significant relationship between measure of the value for price and profitability. Ho3: There is no significant relationship between the measure of value for quality of services and patronage. Ho4: There is no significant relationship between the measure of value for quality of services and profitability. Ho5: There is no significant relationship between the measure of value for retention of staff and patronage. Ho6: There is no significant relationship between the measure of value for retention of staff and profitability. Ho7: There is no significant relationship between the measure of the value for security and patronage. Ho8: There is significant relationship between the measure of value for security and profitability. 1.7 Significance of the study This study, organizational culture and customer’s retention will be of benefit in so many ways. This study has academic, policy and practical implications. It is hoped that the findings will be of great significance to several groups of people consisting hotel business outfit owners, policy makers in the Tourism and Hospitality business and the general public. The study when completed will bring to limelight the extent of the role of organisational culture as a strategy for customers’ retention. Organisations particularly the Hotel business will become increasing aware that cultures such as price , quality, staff retention and security when consistently used as strategies relates with customers’ retention. These organisational culture promote customers retention. This study will be of immense benefit to Hotel business owners because it will provide a working tool for them to promote their business through effective and efficient organisational cultures such as courtesy, personal relationship, hygiene, security and encourage them to think out of the box by strengthening the human resources department of their hotels to optimize customers’ retention and promote profit. This study will contribute to the knowledge scope of policy makers in the Tourism and Hospitality business to explore ways of further promoting organisational culture towards ensuring customers retention so as to help hospitality business owners remain in business. This study would also contribute to the world literature which will help other researchers for further research. 1.8 Scope of the study. The scope of this study is expressed based on geographical coverage and the content is based on the above. The study covers some selected Hotels in Port Harcourt in Rivers State. While in content, the study covers the independent variables of organisational cultures (such as price, quality, staff retention and security) as it relates with customers retention in some selected Hotels in Port Harcourt, Rivers state. 1.9 Study Area. Rivers State is the area of this study. River is located in the south Nigeria. Rivers state was created out of the old Eastern Region in 1967 with its capital in Port harcourt. The state has twenty-three (23)Local Government Areas. Rivers state is bounded in the south by the Atlantic Ocean, in the north by Anambra, Imo and Abia states, in the east by Akwa Ibom state and in the west by Bayelsa and Delta states. It has an area of 11,077km2 and a population of 295, 774 at the 2006 census. Rivers state has a total of 297 registered standard Hotels. Table 1: First 20 Hotels in Rivers state and their rankings. S/N Names Of Hotels Ranking 1 Hotel Presidential, Port Harcourt 1st 2 The Novotel Hotel, Port Harcourt 2nd 3 The Elkan, Terrace, Port Harcourt. Sparkyln Hotels &Suites,GRA, Port Harcourt. 3rd 4th 4 5 Southern Star Hotel & Towers, Port Harcourt. 5th 6 Golden Tulip Hotels, Port Harcourt 6th 7 Swiss International Mabise, Port Harcourt. 7th 8 Dannic Hotel, Port Harcourt. 8th 9 Hotel De Excellence, Port Harcourt 9th 10 Genesis Place, Port Harcourt 10th 11 Best Premier Hotel & Resorts, Port Harcourt. 11th 12 Riviera Homes, Port Harcourt. 12th 13 Bellaza De Sophia Hotel, Port Harcourt 13th 14 Garden City, Marriot Hotels, Port Harcourt. 14th 15 Benitex Hotels, Port Harcourt. 15th 16 Juanita Hotel, Port Harcourt. 16th 17 The Gold Prince Hotel, Port Harcourt. 17th 18 Toki Hotels, Port Harcourt. 18th 19 Embassy Hotel limited, Port Harcourt. 19th 20 Protea Hotel Garden City, Port Harcourt. Total 20th Definition of concepts Organization: A group of people or other legal entities with an explicit purpose and written rules. A Hotel is an example of an organisation. Culture: The beliefs, values, behaviour and material objects that constitute a people’s way of life. This include the way things are done in a place or an organisation. Customer: A patron; one who purchases or receives a product or service from a business or merchant, or intends to do so. Retention: The act of retaining or something retained. Value for price: This means the value in amount attached to good and services rendered by an organisation. Value for quality of services: This refers to the value attached to a property or an attribute that differentiates a thing or person. The value attached to services rendered by a hotel is the value for quality. Staff: The employees of a business Value for staff retention: The degree or value to which organisation such as a hotel retains their staff or the frequency to which they sack their staff. Value for security: The value attached to the protection of customers and the condition of ensuring they are not threatened, especially physically, psychologically, emotionally or finally. CHAPTER TWO LITERATURE REVIEW This chapter review literature related to organisational culture and customers’ retention which are relevant to the study. This was extensively reviewed. A theoretical framework was discussed. The reason for the theory adopted for this study was also discussed. Conceptual frameworks were also discussed. This was followed by empirical review which entails the aims, methods, findings of previous works that were relevant to the present study and the gap necessitating this study was identified from the literature reviews carried out. 2.1 Theoretical framework. 2.1.1. Organizational theory. The theory backing this study is Vroom’s Expectancy value theory (or expectancy theory of motivation) propounded in 1964.The Expectancy theory proposes that an individual will behave or act in a certain way because they are motivated to select a specific behaviour over other behaviours due to what they expect the result of that selected behaviour will be. In essence, the motivation of the behaviour selection is determined by the desirability of the outcome. However, at the core of the theory is the cognitive process of how an individual processes the different motivational elements. This is done before making the ultimate choice. The outcome is not the sole determining factor in making the decision of how to behave. Expectancy theory is about the mental processes regarding choice, or choosing. It explains the processes that an individual undergoes to make choices. In the study of organizational behaviour, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. “This theory emphasizes the needs for organizations to relate rewards directly to performance and to ensure that the rewards provided are those rewards deserved and wanted by the recipients.” Victor H. Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities, a process controlled by the individual. The individual makes choices based on estimates of how well the expected results of a given behaviour are going to match up with or eventually lead to the desired results. Motivation is a product of the individual’s expectancy that a certain effort will lead to the intended performance, the instrumentality of this performance to achieving a certain result, and the desirability of this result for the individual, known as valence. In 1964, Victor H. Vroom developed the expectancy theory through his study of the motivations behind decision making. This theory is relevant to the study of management. The expectancy theory of motivation explains the behavioral process of why individuals choose one behavioral option over the other. This theory explains that individuals can be motivated towards goals if they believe that; there is a positive correlation between efforts and performance, the outcome of a favourable performance will result in a desirable reward, a reward from a performance will satisfy an important need, and/or the outcome satisfies their need enough to make the effort worthwhile. Vroom introduced three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I). The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy), performance-outcome expectancy (P>O expectancy). Expectancy theory has three components: expectancy, instrumentality, and valence. 1. Expectancy: effort → performance (E→P) 2. Instrumentality: performance → outcome (P→O) 3. Valence: V(R) outcome → reward Expectancy is the belief that one’s effort (E) will result in attainment of desired performance (P) goals. 1. Self efficacy – the person’s belief about their ability to successfully perform a particular behavior. The individual will assess whether they have the required skills or knowledge desired to achieve their goals. 2. Goal difficulty – when goals are set too high or performance expectations that are made too difficult. This will most likely lead to low expectancy. This occurs when the individual believes that their desired results are unattainable. 3. Perceived control – Individuals must believe that they have some degree of control over the expected outcome. When individuals perceive that the outcome is beyond their ability to influence, expectancy, and thus motivation, is low. Instrumentality is the belief that a person will receive a reward if the performance expectation is met. This re- ward may present itself in the form of a pay increase, promotion, recognition or sense of accomplishment. Instrumentality is low when the reward is the same for all performances given. Another way that instrumental outcomes work is com-missions. With commissions performance is directly correlated with outcome (how much money is made). If performance is high and many goods are sold the more money the person will make. Factors associated with the individual’s instrumentality for outcomes are trust, control and policies: Trusting the people who will decide who gets what outcome, based on the performance, Control of how the decision is made, of who gets what outcome, Policies understanding of the correlation between performance and outcomes. Valence V(R), Valence: the value an individual places on the rewards of an outcome, which is based on their needs, goals, values and Sources of Motivation. Influential factors include one’s values, needs, goals, preferences and sources that strengthen their motivation for a particular outcome. Valence is characterized by the extent to which a person values a given outcome or reward. This is not an actual level of satisfaction rather the expected satisfaction of a particular outcome. The valence refers to the value the individual personally places on the rewards. Motivational Force (MF) = Expectancy x Instrumentality x Valence When deciding among behavioral options, individuals select the option with the greatest amount of motivational force (MF). Expectancy and instrumentality are attitudes (cognitions), whereas valence is rooted in an individual's value system. Examples of valued outcomes in the workplace include, pay increases and bonuses, promotions, time off, new assignments, recognition, etc. If management can effectively determine what their employee values, this will allow the manager to motivate employees in order to get the highest result and effectiveness out of the workplace. Victor Vroom's expectancy theory is one such management theory focused on motivation. According to Holdford and Lovelace-Elmore (2001, p. 8), Vroom asserts, "Intensity of work effort depends on the perception that an individual's effort will result in a desired outcome".In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance. Emphasizes self-interest in the alignment of rewards with employee's wants. Emphasizes the connections among expected behaviors, rewards and organizational goal. Expectancy Theory, though well known in work motivation literature, is not as familiar to scholars or practitioners outside that field. The Vroom’s expectancy value theory is adopted for this study because this study is investigating the relationship between the values for price, quality of service, staff retention, security and Customer retention in selected Hotels in Port Harcourt, Rivers state. 2.2 Conceptual frameworks 2.2.1 Organizational culture and Customers retention. According to Business Dictionary (2015), Organizational culture encompasses values and behaviours that contribute to the unique social and psychological environment of an organization. Organizational culture represents the collective values, beliefs and principles of organizational members. It is also a product of such factors as history, product, market, technology, strategy, type of employees, management style, and national culture; culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. (Needle: 2004). Schein (2004) emphasised that perhaps the most interesting aspect of organizational culture is that it points to phenomenon that are below the surface, that are powerful in their impact but invisible and to a considerable degree unconscious’. Schein uses an analogy that organizational culture is to a group what personality or character is to an individual. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization. (Schein: 1992). He further advanced the idea that organizations often have very differing cultures as well as subcultures. Although a company may have its "own unique culture", in larger organizations there are sometimes co-existing or conflicting subcultures because each subculture is linked to a different management team. Deal and Kennedy (1982) emphasised the most visible levels of organizational culture (heroes, rites, rituals, legends and ceremonies) because it is these attributes they believe shape behaviour. But it is the invisible levels that may be of more interest to public sector organisations in terms of their influence in progressing or impeding organisational change. Rosauer (2013) sees organizational culture as an emergence that is an extremely complex immeasurable state that results from the combination of a few simple ingredients. He outlined the three manageable ingredients that guide the culture of any business. These are Ingredient One: Employee (focus on engagement). Ingredient Two: The Work (focus on eliminating waste increasing value) waste. Ingredient Three: The Customer (focus on likelihood of referral). The purpose of the three manageable ingredients is to bring leadership, their employees, the work and the customer together for focus without distraction, leading to an improvement in culture and brand. 2.2.2 Quality, Price and Customers retention Bradley and Parkers (2006) examine both the extent to which managers’ views on organisational culture reflect the main beliefs of management and the desires of customers’ in terms of quality and price, and how they fit within organization context. Their research investigated the idea that managers’ perceptions of ideal organisational culture in terms of the quality of service rendered is different to the interfering model of culture, which has traditionally been associated with public sector organisations. Managers prefer a culture that is more external and less control focussed, as expected will entrench quality, promote price control and bring the much desired customers satisfaction. O’Farrell (2006) reiterates that the change to move toward practices which are more flexible and less rule bound is a huge challenge of building and indeed shifting an organizational culture in a large bureaucratic structure will drive home quality and price control mechanisms. O’Farrell (2006) noted that optimal progress was achieved in organisational culture as Queensland Health organization earmarked $56.4 billion in extra funding through the health action plan over five years to enhance its service delivery. The department operated a new efficient structure; a new policy of conduct was effective; $3 million was invested over two years to improve the quality of workplace. O’Farrell (2006) noted that leaders in the public sector organizations consider two questions in determining quality in an organization. What words do staff use to describe the culture of quality in the organisation? Do leaders think the description is consistent with their diagnosis of the organizations goal in terms of quality? O’ Farrell (2006) concluded that statements of quality, codes of conduct, values of public service management and so on set out in rules and regulation are simply expression. It is the job of administrators, managers and leaders to turn them into reality’. McEvoy and Cascio(1987) meta-analysis of another 24 turnover studies indicated that an organization's stronger employees tend to have lower turnover rates than weaker employees during particular calendar periods. They found that the strength of the inverse relationship between job performance and turnover varied significantly with the length of the calendar period investigated and labour market unemployment rates but reported no moderating effects for organizational variables. Terborg and Lee (1984) found that the variation in annual turnover rates across organizations was related to local labour market conditions and the demographic characteristics of employees but that organizational climate variables had very weak relationships with turn-over rates. This is also noted by O’Donnell (2006) in terms of culture facilitating innovative initiative in public organizations and providing a supportive environment for developing ‘enterprising leaders’. According to the duo of Ravasi and Schultz (2006), organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behaviour for various situations. It is also the pattern of such collective behaviours and assumptions that are taught to new organizational members as a way of perceiving and, even, thinking and feeling. 2.2.3 Staff retention, Security and Customers Retention Customers’ retention can be measured in terms recognition/recommendation, positive impression, hours spent in the hotel, customer satisfaction, high rating etc, by customers. Sheridan (1992) carried out a study on Organizational culture and employee retention. This study investigated the retention rates of 904 college graduates hired in six public accounting firms over a six-year period. Organizational culture values varied significantly among the firms. The variation in cultural values had a significant effect on the rates at which the newly hired employees voluntarily terminated employment. This is not unconnected with organizational culture and customers’ interest. The relationship between the employees' job performance and their retention also varied significantly with organizational culture values. The cultural effects were stronger than the combined influences of the labour market and the new employees' demographic characteristics. This shows that organizational culture influence of consistent employees play significant role in customers’ retention and satisfaction. O’Farrell (2006) asserted that Bradley and Parker (2001) placed a significant prominence on the role of leaders in influencing culture in terms of how they react to crises; what the leaders pay attention to; how resources are allocated; and also that the criteria by which people (employees) are selected, promoted and noted that this have a significant influence on culture of retaining the patronage of their customers. Kerr and Slocum (1987) further suggested that organizational culture values may moderate differences in the retention rates of strong and weak employees. They reported that some organizations have cultures that emphasize values of teamwork, security, and respect for individual members. These values foster loyalty and long-term commitment to the organizations among all employees, regardless of their job performance. Consequently, employee retention rates may be uniformly high in some organizational cultures but in other cultures may vary greatly depending on employees' job performance. This certainly promotes customers retention. (O’Donnell & Boyle: 2008) wrote that one of the first thing a new employee learns is some of the organisation’s culture. Culture can stay with an organisation and become part of the established way of doing things. The organisation will develop ‘norms’ i.e. established (normal) expected behaviour patterns within the organisation. A norm is defined as an established behaviour pattern that is part of a culture. Culture can either facilitate or inhibit institutional transformation depending on whether or not the existing culture is aligned with the goals of the proposed change Zalami (2005) (Schneider, 1990) provided a thoughtful analysis and integration of the development of organizational culture theory and research. The research investigated whether particular cultural values help or hinder organizations in retaining their most productive employees to ensure quality services to their customers. O’Farrell (2006) described a review conducted by Forster of the health system in Queensland as a good example of an organisational culture change programme and its wider implications for the whole of the Queensland public service as an organization. A commitment had been given by Queensland public servants that Queensland Health staff generally is a dedicated, professional and committed workforce, with a strong culture to do the best for patients and consumers. In his review, Forster highlighted a number of negative features of the organisation’s culture, which he claimed would severely impede its ability to deliver the best possible standard of service to patients and consumers. These negative aspects included dysfunctional behaviours such as bullying, intimidation and a reluctance to share information, and professional ‘silos’ which reflect traditional occupational groupings. The above study was conducted in the public accounting industry, employee gender and marital statuses, as well as market factors such as labour supply and starting salary levels, were considered important exogenous influences on professional staff retention. Peters and Sheridan (1988) and Barkman, Sheridan, and Peters (1992) indicated that new employees' job performance wer significantly related to their retention rates. The difference in the retention rates of strong and weak performers varied widely across organizations, but no human resource management moderating variables were identified McEvoy and Cascio's (1985) meta-analysis of 20 turnover studies indicated that some human resource management practices, such as job enrichment programs, have consistent but only moderate effects on turnover rates across organizations. Other practices, such as realistic job previews, have very weak and inconsistent effects on turnover rates. Kerr & Slocum (1987) and Kopelman & colleagues (1990) argued that the variation in employee retention across organizations may be related to organizational culture values. These authors suggested that an organizations’ cultural values influence its human resource strategies, including selection and placement policies, promotion and development procedures, and reward systems. Different strategies result in psychological climates that foster varying levels of commitment and retention among employees. However, the consistency of employees promotes business interest. (Sheridan : 1992). 2.3 Empirical reviews O'Reilly, Chatman, and Caldwell (1991) proposed a descriptive approach whereby respondents use a Questionnaire-sort procedure to develop a profile of values describing their organization. Over 50 dimensions of cultural values were proposed in the various questionnaire instruments researchers have designed. Rousseau (1990) grouped all these dimensions into three broad categories describing organizational values and norms regarding (1) the completion of work tasks, (2) interpersonal relationships, and (3) individual behaviour. Many of the empirical studies of organizational culture values have focused on individual or group and department levels of analysis. Cooke & Rousseau, 1988; Hofstede et al, 1990; Kerr & Slocum, 1987 examined discrepancy in cultural values across firms but have typically sampled organizations from widely different industries. These authors noted that such a design has a potential problem of confounding variation in organizational culture values with what may be broad industry-wide differences in organizations' strategies and management practices. Saffold (1988) suggested that macro organization-level effects on employee behaviour exist only to the extent that they demonstrate that particular cultural values are unique to certain organizations and qualitatively different from the values found in other organizations. The behavioural effect under investigation should be associated with the presence of a unique profile of cultural values found only in those organizations where the effect was observed. Sheridan (1992) study showed that retention data were collected for all the firms' professional employees hired in this city during a six-year period. The firms hired a total of 1,014 professionals in their tax and audit departments. The study group included only the 904 recent graduates hired for entry-level positions during the study period.110 experienced professionals hired at senior management levels during the period since their mobility patterns would likely be different from those of inexperienced college graduates just entering the profession. Personnel records indicated that 315 of these new employees (34.8%) voluntarily left their firms during the study period. Another 108 (12%) were dismissed or encouraged to leave because of low job performance or limited career potential. These terminations were classified as involuntary. There were 18 new employees (2%) who transferred to different geographical locations of the same firms for which they had been working. The remaining 463 (51.2%) were still actively employed in their initial offices during the period of the study. The retention time for each newly hired employee was computed as the number of months that elapsed between his or her hiring and exit dates. The exit date could be a date on which employment terminated, a date on which a transfer occurred, or the last day of the study period. The voluntary retention time for transferred or active employees is a concealed measure since their total length of employment was not known. Likewise, the voluntary retention time for involuntarily terminated employees is a censored measure since it was not known how long those employees would have voluntarily stayed with the firms had they not left involuntarily. These concealed measures are still useful since they knew that the employees had not voluntarily left prior to the concealed retention time. The influence of organizational culture values on voluntary retention rates was examined through survival analysis (Sheridan: 1992) Kopelman and colleagues (1990) noted that cultural values ultimately influence organizational effectiveness by enhancing the quality of outputs or reducing labor costs. Their study demonstrated cultural effects on the quality of firms' tax and audit work for clients. It is possible to estimate the effects on human resource costs. The estimated costs of job terminations have previously been based on the expenses incurred in replacing terminated employees. The survival model suggests an alternative method for estimating termination costs. An organization can never completely avoid replacement expenses but can delay those costs until later seniority periods by increasing the survival rates of new employees. The human resource costs thus represent an opportunity loss of not retaining new people for long. Barkman, Sheridan, and Peters (1992) wrote that opportunity loss can be estimated by considering the gross profits generated by employees during each month of seniority. The gross profits per professional employee in public accounting can be determined by subtracting the annual costs of retaining an employee from the annual revenues he or she generates during each year of employment with a firm. Barkman and colleagues (1992) estimated that profits in a city comparable to the one studied using the firms' average billing fees and hiring, training, and compensation costs from years corresponding to the study period. They estimated that profits ranged from $58,000 per professional employee during the first year of employment to $67,000 during the second year and $105,000 during the third year. An organization therefore incurs an opportunity loss of only $9,000 when a new employee replaces a two-year employee but incurs a $47,000 loss when an employee of three years is replaced. This showed that staff retention or consistency as an organisational culture leads to customers’ retention. Establishing the gap and bridging it. Conclusively, the researcher notes that from all the empirical reviews carried out and extensively discussed above, there is a gap that shows that most of the empirical reviews reflects scholarly works in the areas of organizational culture and employees productivity; organizational culture and customers’ satisfaction; and organizational culture and employees’ retention. None of the empirical works directly address this study. This therefore necessitates the gap for this study as none of the studies reviewed specifically addressed organizational culture and Customers retention. The gap is being bridged as this study intends to address Organisational culture and Customers retention. CHAPTER THREE METHODOLOGY 3.1 Research Design This study adopts the research design of descriptive survey study. Nwankwo (2013:72),defined descriptive survey study as “the design in which the researcher or investigator collects data from a large sample drawn from a given population and describes certain features of the sample as they are.” 3.2 Population of the study. The population for this study consist of all Hotels and Hotel managers and supervisors based on their level of experience and position in all the Hotels in Port Harcourt, Rivers state. The choice of hotels managers and their supervisors for the purpose of gathering information for this study was based on their knowledge and wealth of experience on organizational culture with regard to Hotels. However, the entire population could not be studied and hence the need to select a sample that represents the entire population. 3.3 Sample and Sampling technique. Sample involves selecting a representative number from a given population that is believed to have a common feature that exists among the elements of a given population. This study has a large population and also not adequately and explicitly defined. Therefore to determine the sample size, the cluster sampling technique using multi stage approach. According to Nwankwo (2013:102), cluster sampling technique involves the researcher dividing the entire population for the study into groups or clusters or subgroups. This clusters or subgroups in this case are similar. In cluster sampling, a total population of interest is first divided into ‘clusters’ and from each cluster individual subjects are selected by random sampling. This approach however, may be considered overly-expensive or time consuming for the investigator. Using multi-stage sampling, investigators can instead divide these first-stage clusters further into second-stage cluster using a second element (for example, first ‘clustering’ a total population by geographic region, and next dividing each regional cluster into second-stage clusters by neighbourhood. Multi-stage sampling begins first with the construction of the clusters. Next, the investigator identifies which elements to sample from within the clusters, and so on until they are ready to survey. Multi-stage sampling represents a more complicated form of cluster sampling in which larger clusters are further subdivided into smaller, more targeted groupings for the purposes of surveying. Despite its name, multi-stage sampling can in fact be easier to implement and can create a more representative sample of the population than a single sampling technique. Particularly in cases where a general sampling frame requires preliminary construction, multi-stage sampling can help reduce costs of large-scale survey research and limit the aspects of a population which needs to be included within the frame for sampling. (Agresti A, & Finlay, B ; 2008) The first stage includes a cluster sample of 3 zones below of all hotels in Portharcourt. These clusters comprise hotels in the three zones that make up Portharcourt (East Senatorial district of Rivers state) only. This is shown below: Three Cluster zones in PH and number of Hotels. Clusters(zones) Numbers of hotels Cluster 1 (PH zone 1) (22 hotels) Cluster 2(PH zone 2) (20 hotels) Cluster 3(PH zone 3) (18 hotels) The second stage of sampling selected Cluster 2(PH zone 2)only which have 20 hotels. This was done because the sampled zone comprised mainly of hotels located within the core Portharcourt city. This is shown in the table below: Sampled cluster Sampled Cluster(zone) Numbers of hotels Cluster 2( PH zone 2) 20 hotels The third stage entail a total sample of 374 managers and supervisors, who were then, administered questionnaires across the 20 hotels in cluster Portharcourt zone 2. This is shown below: Cluster 2 (PH zone) Names Of Hotels Sample size of managers/Supervisors 1 Hotel Presidential, Port Harcourt 28 2 The Novotel Hotel, Port Harcourt 24 3 The Elkan, Terrace, Port Harcourt. 21 4 Sparkyln Hotels &Suites,GRA, Port Harcourt. 21 5 Southern Star Hotel & Towers, Port Harcourt. 21 6 Golden Tulip Hotels, Port Harcourt 21 7 Swiss International Mabise, Port Harcourt. 20 8 Dannic Hotel, Port Harcourt. 20 9 Hotel De Excellence, Port Harcourt 20 10 Genesis Place, Port Harcourt 20 11 Best Premier Hotel & Resorts, Port Harcourt. 20 12 Riviera Homes, Port Harcourt. 20 13 Bellaza De Sophia Hotel, Port Harcourt 20 14 Garden City, Marriot Hotels, Port Harcourt. 19 15 Benitex Hotels, Port Harcourt. 19 16 Juanita Hotel, Port Harcourt. 17 17 The Gold Prince Hotel, Port Harcourt. 18 Toki Hotels, Port Harcourt. 16 19 Embassy Hotel limited, Port Harcourt. 14 20 Protea Hotel Garden City, Port Harcourt. 13 Total 374 A total of 374 managers and supervisors from the top, intermediate and junior cadres based on their level of experience and position in all the organizational hierarchy of the selected hotel were therefore used as sample for this study. 3.4 Nature/Sources of data There are the primary and secondary data. The data for the study consist of primary data which were obtained from a cross-sectional survey method with the instrument of questionnaire designed by the researcher. 3.5 Method of Data collection/Instrumentation The questionnaires were administered and collected personally from respondents immediately after completion. The questionnaire was made up of a total of 17 items in both sections “A” & “B” .Section A represents socio demographic data and has four (4) items, while section B contains thirteen (13) items structured on a four (4) point weighted likert scale. Fubara (1995) asserted that a scale questionnaire is a questionnaire in which respondents grade their responses to reflect their degree of agreement to a variable item. Table 2: Grading Scale Classification Grade Points Strongly Agree SA 4 Agree A 3 Disagree D 2 Strongly Disagree SD 1 The questionnaires were designed to contain questions and gather information on each variable of organization culture in relationship to customers’ retention. The questionnaires were then administered personally by the researcher to selected managers in selected Hotels in Port Harcourt, Rivers State. 3.6 Method of Data analysis The data collected from the questionnaire administered were coded and keyed into SPSS version 20. First, the sample characteristics and the nature of each variable were presented using descriptive statistics of mean .A criterion mean of 2.50 was adopted. This was obtained by adding the weights of 4,3, 2 and 1 and dividing it by 4 as shown below: (4+3+2+1)/4=2.5. This was used in taking decision for all the research questions. Using statistical package for social sciences (SPSS), Spearman Rank Order correlation coefficient (spearman’s rho) statistical technique was adopted, to evaluate the empirical relationship between the independent variables (Organizational Culture: Price, Quality, Staff retention and Security) and the dependent variable (Customers retention). The data for this study is measured in ordinal or ranking scale. According to Asika (2001), data is measured in ordinal or ranking scale. This refers to procedure of grading or assignment of numbers to variables placed in rank order. (Sekaran: 2003) noted that the Spearman Rank Order correlation coefficient (spearman’s rho) analysis technique is adopted where the two variables are ordinal, interval or ratio scales. CHAPTER FOUR DATA PRESENTATION, ANALYSIS AND INTERPRETATION 4.1 Presentation of data. This chapter discusses the presentation of data. A total of 374 questionnaires were administered.374 representing 100% were returned successfully and was adopted for this study Table 4.1 showing of distributed questionnaires. Number (%) Questionnaires administered 374 100 Questionnaires returned 374 100 Questionnaires adopted. 374 100 Source: SPSS data output Table 4.2 showing demographic data for gender Gender Frequency (%) Male 190 51 Female 184 49 Total 374 100 The above table shows that 51% of the respondents are male, while 49% are female. This show that majority of the respondents are male, compared to female. Table 4.3 showing demographic data for marital status Gender Frequency (%) Single 101 27.0 Married 188 50.3 Others 85 22.7 Total 374 100 The table above shows that 27% of the respondents are single, 50.3% is married, while 22.7% belong to other unidentified marital group. This show that majority of the respondents are married, compared to others and single. Table 4.4 showing demographic data for level of education Level of education Frequency (%) Primary 0 0 Secondary 0 0 Tertiary 374 100 Total 374 100 The table above show that 100% of the respondents have tertiary education, 0% have secondary education, while 0% have primary education. This show that majority of the respondents had tertiary education, compared to those who had secondary and primary education only. Table 4.5 showing demographic data for years of experience Level of Frequency (%) 0-10 years 300 80.2 Above 10 years 74 19.8 Total 374 100 The table above show that 19.8 % of the respondents have 10 years and above experience, while 80.2% have 0 to 10 years experience. This show that majority of the respondents had 0 and 10 years managerial experience, compared to those without lengthy managerial experience. 4.2 ANSWERING THE RESEARCH QUESTIONS Tables of Results and mean analysis. Research Question One: How do the value for price measures patronage? Table 4.6 Value for Price and patronage. S/N Items Strongly Agreed Agreed disagreed Strongly disagreed Total Mean 1 The higher the price rates of Hotels, the lower the patronage. 130 121 59 64 374 2.85 2 Price rates of Hotels have no influence on customers’ decision 152 169 34 19 374 3.21 Mean average 3.03 Source: Data Survey, 2016. Table 4.6 above shows the analysis of the respondents. The analysis indicated a mean of 3.03 which is above the criterion mean of 2.50. This shows that value for price measures patronage in selected hotels in Rivers state. Research Question Two: What is the relationship between the measure of the value for price and profitability? Table 4.7 Value for Price and profitability. S/N Items Strongly Agreed Agreed Disagreed Strongly disagreed Total Mean 3 Customers patronize Hotel based on rankings 107 199 60 08 374 3.08 4 Hotel operators inconsistent approach has nothing to do with price rates 152 201 15 06 374 3.33 Mean average 3.21 Source: Data Survey, 2016. Table 4.7 above shows the analysis of the respondents. The analysis indicated a mean of 3.21 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for price and profitability. Research Question Three: What is the relationship between the measure for value for quality services and patronage? Table 4.8 Value for Quality services and patronage. S/N Items Strongly Agreed Agreed Disagreed Strongly disagreed Total Mean 5 The higher the patronage, the better the quality of service. 177 124 50 23 374 3.22 6 Cost of services depends on the availability of customers 152 108 56 58 374 2.94 Mean average 3.08 Source: Data Survey, 2016. Table 4.8 above shows the analysis of the respondents. The analysis revealed a mean of 3.08 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for quality services and patronage Research Question Four: Is there a relationship between the measure of the value for quality services and profitability? Table 4.9 Value for quality services and profitability. S/N Items Strongly Agreed Agreed disagreed Strongly disagreed Total Mean 7 Profitability of Hotel depends on ranking and proximity(quality) 180 144 28 22 374 Mean average 3.29 Source: Data Survey, 2016. Table 4.9 above shows the analysis of the respondents. The analysis revealed a mean of 3.29 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for quality services and profitability. Research Question Five: Is there a relationship between the measure of the value for staff retention and patronage? Table 4.10 Value for staff retention and patronage. S/N Items Strongly Agreed Agreed Disagreed Strongly disagreed Total Mean 8 Consistency of staff retains customers 166 129 13 66 374 Mean average 3.06 Source: Data Survey, 2016. Table 4.10 above shows the analysis of the respondents. The analysis revealed a mean of 3.06 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for staff retention and patronage Research Question Six: Is there a relationship between the measure of the value for staff retention and profitability? Table 4.11 Value for staff retention and profitability. S/N Items Strongly Agreed Agreed Disagreed Strongly disagreed Total Mean 9 Customers patronage is not guided by staff retention rather on the availability of services 176 145 03 50 374 3.20 Mean average 3.20 Source: Data Survey, 2016. Table 4.11 above shows the analysis of the respondents. The analysis depicts a mean of 3.20 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for staff retention and profitability. Research Question Seven: How do the measure of the value for security relate with patronage? Table 4.12 Value for security and patronage. S/N Items Strongly Agreed Agreed Disagreed Strongly disagreed Total Mean 10 Secured environment promote customers services 177 134 61 02 374 3.30 3.30 Source: Data Survey, 2016. Table 4.12 above shows the analysis of the respondents. The analysis shows a mean of 3.30 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for security and patronage. Research Question Eight: What is the relationship between the measure of the value for security and profitability? Table 4.13 Value for security and profitability. S/N Items Strongly Agreed Agreed Disagreed Strongly disagreed Total Mean 11 The value for ensuring security depends on ratings of hotels 200 121 5 16 374 3.18 Mean average 3.18 Source: Data Survey, 2016. Table 4.13 above shows the analysis of the respondents. The analysis shows a mean of 3.18 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for security and profitability. 4.3 TESTING OF HYPOTHESES Ho1: There is no significant relationship between the measure of value for price and patronage. Table 4.14: Relationship between price and patronage Value for Price patronage Spearman's rho Value for price Correlation Coefficient 1.000 .144 Sig. (2-tailed) . .088 N 374 374 Patronage Correlation Coefficient .144 1.000 Sig. (2-tailed) .088 . N 374 374 Source: Data Survey, 2016 The data in Table 4:14 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:14 above indicates that there was a positive relationship between the value for price and patronage (Spearman’s Rho: 0.88,0.144 p>0.05). Therefore hypothesis One (1) is therefore rejected. Thus, there is significant relationship between the measure of value for price and patronage. Ho2: There is no significant relationship between the measure of value for price and profitability. Table 4.15: Relationship between price and profitability Value for Price profitablity Spearman's rho Value for price Correlation Coefficient 1.000 .91 Sig. (2-tailed) . .065 N 374 374 Profitability Correlation Coefficient .91 1.000 Sig. (2-tailed) .065 . N 374 374 Source: Data Survey, 2016 The data in Table 4:15 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:15 above reveals that there was a positive relationship between the value for price and profitability (Spearman’s Rho: 0.91,0.65 p>0.05). Therefore hypothesis two (2) is therefore rejected. Thus, there is significant relationship between the measure of value for price and profitability. Ho3: There is no significant relationship between the measure of quality of services and patronage. Table 4.16: Relationship between measure for quality of services and patronage. Services patronage Spearman's rho Quality for Services Correlation Coefficient 1.000 .88 Sig. (2-tailed) . .049 N 374 374 Patronage Correlation Coefficient .88 1.000 Sig. (2-tailed) .049 . N 374 374 Source: Data Survey, 2016 The data in Table 4:16 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:16 above shows that there was a positive relationship between the value for quality of services and patronage (Spearman’s Rho: .88, 0.49 p>0.05). Therefore hypothesis three (3) is therefore rejected. Thus, there is significant relationship between value for quality of services and patronage Ho4: There is no significant relationship between the measure of quality of services and profitability. Table 4.17: Relationship between measure for quality of services and profitability. Quality of Services Profitability. Spearman's rho Quality for Services Correlation Coefficient 1.000 .71 Sig. (2-tailed) . .61 N 374 374 Profitability. Correlation Coefficient .71 1.000 Sig. (2-tailed) .61 . N 374 374 Source: Data Survey, 2016 The data in Table 4:17 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:17 above shows that there was a positive relationship between the value for quality of services and profitability (Spearman’s Rho: 0.71,0.61 p>0.05). Therefore hypothesis four(4) is therefore rejected. Thus, there is significant relationship between value for quality of services and profitability. Ho5: There is significant relationship between the measure of value for retention of staff and patronage. Table 4.18: Relationship between measure for retention of staff and patronage. Retention of staff patronage Spearman's rho Retention of staff Correlation Coefficient 1.000 .99 Sig. (2-tailed) . .054 N 374 374 Patronage Correlation Coefficient .99 1.000 Sig. (2-tailed) .054 . N 374 374 Source: Data Survey, 2016 The data in Table 4:18 was tested. The result of the data analysis above shows that there was a positive relationship between the value for retention of staff and patronage (Spearman’s Rho: .99, .054 p>0.05). Therefore hypothesis five (5) is therefore rejected. Thus, there is significant relationship between value for retention of staff and patronage Ho6: There is no significant relationship between the measure of retention of staff and profitability. Table 4.19: Relationship between measure retention of staff and profitability. Retention of staff Profitability. Spearman's rho Retention of staff Correlation Coefficient 1.000 .85 Sig. (2-tailed) . .62 N 374 374 Profitability Correlation Coefficient .85 1.000 Sig. (2-tailed) .62 . N 374 374 Source: Data Survey, 2016 The data in Table 4:19 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:19 above shows that there was a positive relationship between the measure for retention of staff and profitability (Spearman’s Rho: 0.85, 0.62 p>0.05). Therefore hypothesis six(6) is therefore rejected. Thus, there is significant relationship between retention of staff and profitability. Ho7: There is significant relationship between the measure of the value for security and patronage Table 4.20: Relationship between measure of the value for security and patronage. Value for security Patronage Spearman's rho Value for security Correlation Coefficient 1.000 .92 Sig. (2-tailed) . .077 N 374 374 Patronage Correlation Coefficient .92 1.000 Sig. (2-tailed) .077 . N 374 374 Source: Data Survey, 2016 The data in Table 4:20 was tested. The result of the data analysis above shows that there was a positive relationship between the value for value for security and patronage (Spearman’s Rho: .92, .077 p>0.05). Therefore hypothesis seven (7) is therefore rejected. Thus, there is significant relationship between value for security and patronage. Ho8: There is no significant relationship between the measure of the value for security and profitability. Table 4.21: Relationship between measure of the value for security and profitability. Value for security Profitabili
CHAPTER ONE
INTRODUCTION
1.1 Background to the study.
Organizations today are ever changing their business environment to overcome challenges posed by macro and micro economic volatilities, stiff competition and technological advancement, as well as social changes. Firms now pay particular attention to customers’ satisfaction and retention as a crucial strategy for organizational sustainability. The Merriam Webster (2003) dictionary defines Organisation as an organized group of people with a particular purpose such as business or government department.
The demand from every organization is a derived demand earmarked to optimize profit, sustain income and survive amidst challenges at all cost. Thus organizations hire professionals because of real or anticipated need for their services to ensure the attainment of organizational main objective of customers’ retention. Most organizations realized that the success of any organization depends on the value they place on customers (Chinonye, 2015)
One way they attempt to achieve this value is closely linked to and greatly affected by their Organisational Culture. Organizational culture often work in consonance with and strongly influences activities that aid customers retention along with service prompt, courtesy, personal relationship, handling of complaints, environmental hygiene, prices placed on customers services and complaints. Most Hotels today are out of business basically because of the low value they attach to customers retention. The values of the price attached to the services rendered are not properly addressed as most hotel price rates are relatively high. The same applies to the quality of their services, frequent replacement of their staff and general security.
Mclaughlin (2003) wrote that Organisational culture is a system of shared assumptions, values and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act and perform their duties. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behaviour of the members of the organization (Mclaughlin: 2003). To an extent, Organizational culture dictates how employees dress, act and perform their jobs. However, culture is a broad term that addresses belief. The values of price, quality of services, staff retention and security is key to defining culture in this context
Customer retention refers to the activities and actions companies and organizations take to reduce the number of customer defections. The goal of customer retention programs is to help companies retain as many customers as possible, often through customer loyalty and brand loyalty initiatives.
It is important to remember that customer retention begins with the first contact a customer has with a company and continues throughout the entire lifetime of the relationship. While most companies traditionally spend more money on customer acquisition because they view it as a quick and effective way of increasing revenue, customer retention often is faster and, on average, costs up to seven times less than customer acquisition. Selling to customers with whom an organization already has a relationship is often a more effective way of growing revenue because companies don’t need to attract, educate, and convert new ones if the old ones are retained.
Business Dictionary (2013) defines a Hotel as commercial establishment providing lodging, meals, and other guest services. In general, to be called a hotel, an establishment must have a minimum of six letting rooms, at least three of which must have attached (ensuite) private bathroom facilities
Hotels are service organisation which (customers) provides people (customers) with comfortable but non- permanent accommodation. In the past hotel businesses served limited function but now they function as business exchange centres, centre for socialization, places of public assembly, deliberation, political meetings, vacations, church services and several other purposes. This broaden scope of business has a number of implications and challenges including security, hygiene and personal relationships.
These hotels which have built strong culture to cater for these stand better chance of retaining their customers and enjoying better patronage the those who have not. It goes beyond having facilities and technology. Those that recognize that the customer is at the hub of the firm and profit are more likely to do well. Another important component is the staffing component.
Organization that have a good culture of caring staff and strengthening staff commitments are likely to retain customers because more often than not it is the staff that deal directly with the customer. In cases where labour turnover is high and customers have to deal with employees each time , they are not likely to remain. Organisational culture can be conversely as weak or strong depending on their ability to secure staff.

1.2 Statement of the Problem
Organizational culture encompasses values and behaviours that contribute to the unique social and psychological environment of an organization. Organisational cultures exist where staff responds to needs because of their alignment to organizational values. Strong organisational values help firms operate like well-oiled machines, engaging in outstanding business with only minor adjustments to existing procedures as needed.
Customers consistent patronage and profitability remains the indicators for measuring the values of price, quality of services, staff retention and security of Hotels. Most Hotels in Rivers state today are expressing serious challenges in maintaining and strengthening their organisational values. This is so because Hotels lack critical values of maintaining steady price rates, quality service, staff retention and security. The price rate of using the services of some hotels are relatively very high compared to the current economic situation especially in the face of the present day economic recession ravaging the country.
The customers desire to retain the services of a hotel lies on their consistent patronage and this measure the values for the price or amount they are willing to part with. Most Hotels operators still do not see the need to cut down the cost of their price rates rather they are increasing these rates on almost daily basis making customers patronage very difficult and at the same time leading to their own dwindling profits. Basically, the measure of customers retention is carried out based on customers patronage and the profit made by Hotels. When Hotels begin to express dwindling patronage, it affects their profitability and ability to remain in business. Most customers who cannot patronize are compelled to take to alternatives. Recent record show that the level of patronage in some first grade hotels such as Hotel Presidential, Port Harcourt The Novotel Hotel, Port Harcourt The Elkan, Terrace, Port Harcourt. The Elkan, Terrace, Port Harcourt. Sparkyln Hotels &Suites, GRA, Port Harcourt. Southern Star Hotel & Towers, Port Harcourt Golden Tulip Hotels, Port Harcourt Swiss International Mabise, Port Harcourt and Dannic Hotel, Port Harcourt have drastically reduced because these hotels maintain their high price rate of lodging and other services in spite the present harsh reality of recession.
In terms of quality, most hotels have reduced the quality of the services rendered as a result of the high cost of managing the hotel as a business. The low patronage of customers has forced many hotels to experience low profits and this has led to many completely folding up. This is because most customers complained of poor services in terms of quality.
Similarly, most first grade hotels now have lower ranking because of their inability to retain their staff due to the present financial situation in the country. Customer patronage has been relatively very low leading to poor profits to the hotels. This have also affected their operations as most hotels are forced to prone down on the numbers of the managers, supervisors and other staff they have. This action definitely have affected their customers as customers who are used to them are now exposed inadequate services or attention since the quality of services is measured by consistent customers patronage.
Security has also had its fair share of the challenges of managing hotels and encouraging customers patronage. The value of providing 24 hours, 7 days in a week security in most hotels today have become a mirage as most hotels are struggling to meet the high cost of sustaining their businesses due to low profit occasioned by low patronage and paying little or no attention to improving the values of security.
According to O’Farrell (2006), where there is weak culture, there is little alignment with organizational values and control must be exercised. Conversely, where organisation culture of customers’ retention is strong, there is expected to be optimum patronage and high turnover.
From the above therefore, the value of price, quality, staffing, and security in optimizing customers’ retention is still lacking, as most Hotels still have not responded strongly and adequately to these organisational values yet due to the present economic recession. The problem of lack of strong organisational value affects organisations operating in the service sector such as Hotels since members of these organizations are responsible for delivering the hospitality service and ensuring customers retention. A lot of contending issues explains why the organisational values in hotels today influence customers’ decision to continue to patronize hotels or not.
Hotels still have challenges managing customers’ retention as a result of value deficiencies in price control, quality, staffing, and security. The high price menu of first grade hotels in Rivers state are very high, coupled with their poor services, inability to retain staff and general security as a result of weak values accounts for poor customers’ retention forcing some of these hotels to close down indefinitely.
As a result of the above, it is therefore based on the above, that the researcher has chosen to examine the interplay of organizational values independent variables such as Price, Quality, Staff consistency and Security. This study is therefore intended to investigate the relationship between the values for price, quality of service, staff retention, security and Customer retention in selected Hotels in Port Harcourt, Rivers state.










1.3 Conceptual framework.
Fig .1.1 Researcher conceptual model/ framework of the relationship between the measures of Organisational values and customers retention as well as moderating variable.
Researcher Conceptualized model,2016.
1.4 Aim and Objectives of the study.
The aim of the study is to investigate organisational culture and customer retention in selected Hotels in Port Harcourt, Rivers state. In specific terms, the objectives of this study are:
1. To investigate the relationship between the measure of the value for price and patronage.
2. To investigate the relationship between the measure of the value for price and profitability.
3. To find out the relationship between the measure of the value for quality service and patronage.
4. To find out the relationship between the measure of the value for quality service and profitability.
5. To examine the relationship between the measure of the value for staff consistency and patronage.
6. To examine the relationship between the measure of the value for staff consistency and profitability
7. To determine the relationship between the measure of the value for security and patronage.

8. To determine the relationship between the measure of the value for security and profitability.

1.5 Research questions
1. How do the value for price measures patronage?
2. What is the relationship between the measure of the value for price and profitability?
3. What is the relationship between the measure for value for quality services and patronage?
4. Is there a relationship between the measure of the value for quality services and profitability?
5. Is there a relationship between the measure of the value for staff retention and patronage?
6. Is there a relationship between the measure of the value for staff retention and profitability?
7. How do the measure of the value for security relate with patronage?
8. What is the relationship between the measure of the value for security and profitability?

1.6 Research hypotheses
The following alternative hypotheses will be tested to guide this study.
Ho1: There is no significant relationship between the measure of value for price and patronage.
Ho2: There is no significant relationship between measure of the value for price and profitability.
Ho3: There is no significant relationship between the measure of value for quality of services and patronage.
Ho4: There is no significant relationship between the measure of value for quality of services and profitability.
Ho5: There is no significant relationship between the measure of value for retention of staff and patronage.
Ho6: There is no significant relationship between the measure of value for retention of staff and profitability.
Ho7: There is no significant relationship between the measure of the value for security and patronage.

Ho8: There is significant relationship between the measure of value for security and profitability.
1.7 Significance of the study
This study, organizational culture and customer’s retention will be of benefit in so many ways. This study has academic, policy and practical implications. It is hoped that the findings will be of great significance to several groups of people consisting hotel business outfit owners, policy makers in the Tourism and Hospitality business and the general public. The study when completed will bring to limelight the extent of the role of organisational culture as a strategy for customers’ retention.
Organisations particularly the Hotel business will become increasing aware that cultures such as price , quality, staff retention and security when consistently used as strategies relates with customers’ retention. These organisational culture promote customers retention. This study will be of immense benefit to Hotel business owners because it will provide a working tool for them to promote their business through effective and efficient organisational cultures such as courtesy, personal relationship, hygiene, security and encourage them to think out of the box by strengthening the human resources department of their hotels to optimize customers’ retention and promote profit.
This study will contribute to the knowledge scope of policy makers in the Tourism and Hospitality business to explore ways of further promoting organisational culture towards ensuring customers retention so as to help hospitality business owners remain in business. This study would also contribute to the world literature which will help other researchers for further research.

1.8 Scope of the study.
The scope of this study is expressed based on geographical coverage and the content is based on the above. The study covers some selected Hotels in Port Harcourt in Rivers State. While in content, the study covers the independent variables of organisational cultures (such as price, quality, staff retention and security) as it relates with customers retention in some selected Hotels in Port Harcourt, Rivers state.
1.9 Study Area.
Rivers State is the area of this study. River is located in the south Nigeria. Rivers state was created out of the old Eastern Region in 1967 with its capital in Port harcourt. The state has twenty-three (23)Local Government Areas. Rivers state is bounded in the south by the Atlantic Ocean, in the north by Anambra, Imo and Abia states, in the east by Akwa Ibom state and in the west by Bayelsa and Delta states. It has an area of 11,077km2 and a population of 295, 774 at the 2006 census. Rivers state has a total of 297 registered standard Hotels.
Table 1: First 20 Hotels in Rivers state and their rankings.
S/N Names Of Hotels Ranking
1 Hotel Presidential, Port Harcourt 1st
2 The Novotel Hotel, Port Harcourt 2nd
3 The Elkan, Terrace, Port Harcourt.
Sparkyln Hotels &Suites,GRA, Port Harcourt. 3rd
4th
4
5 Southern Star Hotel & Towers, Port Harcourt. 5th
6 Golden Tulip Hotels, Port Harcourt 6th
7 Swiss International Mabise, Port Harcourt. 7th
8 Dannic Hotel, Port Harcourt. 8th
9 Hotel De Excellence, Port Harcourt 9th
10 Genesis Place, Port Harcourt 10th
11 Best Premier Hotel & Resorts, Port Harcourt. 11th
12 Riviera Homes, Port Harcourt. 12th
13 Bellaza De Sophia Hotel, Port Harcourt 13th
14 Garden City, Marriot Hotels, Port Harcourt. 14th
15 Benitex Hotels, Port Harcourt. 15th
16 Juanita Hotel, Port Harcourt. 16th
17 The Gold Prince Hotel, Port Harcourt. 17th
18 Toki Hotels, Port Harcourt. 18th
19 Embassy Hotel limited, Port Harcourt. 19th
20 Protea Hotel Garden City, Port Harcourt.
Total 20th



Definition of concepts
Organization: A group of people or other legal entities with an explicit purpose and written rules. A Hotel is an example of an organisation.
Culture: The beliefs, values, behaviour and material objects that constitute a people’s way of life. This include the way things are done in a place or an organisation.
Customer: A patron; one who purchases or receives a product or service from a business or merchant, or intends to do so. Retention: The act of retaining or something retained.
Value for price: This means the value in amount attached to good and services rendered by an organisation.
Value for quality of services: This refers to the value attached to a property or an attribute that differentiates a thing or person. The value attached to services rendered by a hotel is the value for quality.
Staff: The employees of a business
Value for staff retention: The degree or value to which organisation such as a hotel retains their staff or the frequency to which they sack their staff.
Value for security: The value attached to the protection of customers and the condition of ensuring they are not threatened, especially physically, psychologically, emotionally or finally.







CHAPTER TWO
LITERATURE REVIEW
This chapter review literature related to organisational culture and customers’ retention which are relevant to the study. This was extensively reviewed. A theoretical framework was discussed. The reason for the theory adopted for this study was also discussed. Conceptual frameworks were also discussed. This was followed by empirical review which entails the aims, methods, findings of previous works that were relevant to the present study and the gap necessitating this study was identified from the literature reviews carried out.
2.1 Theoretical framework.
2.1.1. Organizational theory.
The theory backing this study is Vroom’s Expectancy value theory (or expectancy theory of motivation) propounded in 1964.The Expectancy theory proposes that an individual will behave or act in a certain way because they are motivated to select a specific behaviour over other behaviours due to what they expect the result of that selected behaviour will be.
In essence, the motivation of the behaviour selection is determined by the desirability of the outcome. However, at the core of the theory is the cognitive process of how an individual processes the different motivational elements. This is done before making the ultimate choice. The outcome is not the sole determining factor in making the decision of how to behave.
Expectancy theory is about the mental processes regarding choice, or choosing. It explains the processes that an individual undergoes to make choices. In the study of organizational behaviour, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. “This theory emphasizes the needs for organizations to relate rewards directly to performance and to ensure that the rewards provided are those rewards deserved and wanted by the recipients.”
Victor H. Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities, a process controlled by the individual. The individual makes choices based on estimates of how well the expected results of a given behaviour are going to match up with or eventually lead to the desired results. Motivation is a product of the individual’s expectancy that a certain effort will lead to the intended performance, the instrumentality of this performance to achieving a certain result, and the desirability of this result for the individual, known as valence.
In 1964, Victor H. Vroom developed the expectancy theory through his study of the motivations behind decision making. This theory is relevant to the study of management. The expectancy theory of motivation explains the behavioral process of why individuals choose one behavioral option over the other. This theory explains that individuals can be motivated towards goals if they believe that; there is a positive correlation between efforts and performance, the outcome of a favourable performance will result in a desirable reward, a reward from a performance will satisfy an important need, and/or the outcome satisfies their need enough to make the effort
worthwhile. Vroom introduced three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I). The three elements are important behind choosing one element over another because they are clearly defined: effort-performance expectancy (E>P expectancy), performance-outcome expectancy (P>O expectancy).

Expectancy theory has three components: expectancy, instrumentality, and valence.
1. Expectancy: effort → performance (E→P)
2. Instrumentality: performance → outcome (P→O)
3. Valence: V(R) outcome → reward
Expectancy is the belief that one’s effort (E) will result in attainment of desired performance (P) goals.
1. Self efficacy – the person’s belief about their ability to successfully perform a particular behavior. The individual will assess whether they have the required skills or knowledge desired to achieve their goals.
2. Goal difficulty – when goals are set too high or performance expectations that are made too difficult. This will most likely lead to low expectancy. This occurs when the individual believes that their desired results are unattainable.
3. Perceived control – Individuals must believe that they have some degree of control over the expected outcome. When individuals perceive that the outcome is beyond their ability to influence, expectancy, and thus motivation, is low.

Instrumentality is the belief that a person will receive a reward if the performance expectation is met. This re- ward may present itself in the form of a pay increase, promotion, recognition or sense of accomplishment. Instrumentality is low when the reward is the same for all performances given.
Another way that instrumental outcomes work is com-missions. With commissions performance is directly correlated with outcome (how much money is made). If performance is high and many goods are sold the more money the person will make. Factors associated with the individual’s instrumentality for outcomes are trust, control and policies:
Trusting the people who will decide who gets what outcome, based on the performance, Control of how the decision is made, of who gets what outcome, Policies understanding of the correlation between performance and outcomes. Valence V(R), Valence: the value an individual places on the rewards of an outcome, which is based on their needs, goals, values and Sources of Motivation. Influential factors include one’s values, needs, goals, preferences and sources that strengthen their motivation for a particular outcome. Valence is characterized by the extent to which a person values a given outcome or reward. This is not an actual level of satisfaction rather the expected satisfaction of a particular outcome. The valence refers to the value the individual personally places on the rewards.
Motivational Force (MF) = Expectancy x Instrumentality x Valence
When deciding among behavioral options, individuals select the option with the greatest amount of motivational force (MF). Expectancy and instrumentality are attitudes (cognitions), whereas valence is rooted in an individual's value system. Examples of valued outcomes in the workplace include, pay increases and bonuses, promotions, time off, new assignments, recognition, etc. If management can effectively determine what their employee values, this will allow the manager to motivate employees in order to get the highest result and effectiveness out of the workplace.
Victor Vroom's expectancy theory is one such management theory focused on motivation. According to Holdford and Lovelace-Elmore (2001, p. 8), Vroom asserts, "Intensity of work effort depends on the perception that an individual's effort will result in a desired outcome".In order to enhance the performance-outcome tie, managers should use systems that tie rewards very closely to performance. Managers also need to ensure that the rewards provided are deserved and wanted by the recipients. In order to improve the effort-performance tie, managers should engage in training to improve their capabilities and improve their belief that added effort will in fact lead to better performance. Emphasizes self-interest in the alignment of rewards with employee's wants. Emphasizes the connections among expected behaviors, rewards and organizational goal. Expectancy Theory, though well known in work motivation literature, is not as familiar to scholars or practitioners outside that field.
The Vroom’s expectancy value theory is adopted for this study because this study is investigating the relationship between the values for price, quality of service, staff retention, security and Customer retention in selected Hotels in Port Harcourt, Rivers state.

2.2 Conceptual frameworks
2.2.1 Organizational culture and Customers retention.
According to Business Dictionary (2015), Organizational culture encompasses values and behaviours that contribute to the unique social and psychological environment of an organization. Organizational culture represents the collective values, beliefs and principles of organizational members. It is also a product of such factors as history, product, market, technology, strategy, type of employees, management style, and national culture; culture includes the organization's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. (Needle: 2004).
Schein (2004) emphasised that perhaps the most interesting aspect of organizational culture is that it points to phenomenon that are below the surface, that are powerful in their impact but invisible and to a considerable degree unconscious’. Schein uses an analogy that organizational culture is to a group what personality or character is to an individual.
Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization. (Schein: 1992). He further advanced the idea that organizations often have very differing cultures as well as subcultures. Although a company may have its "own unique culture", in larger organizations there are sometimes co-existing or conflicting subcultures because each subculture is linked to a different management team.
Deal and Kennedy (1982) emphasised the most visible levels of organizational culture (heroes, rites, rituals, legends and ceremonies) because it is these attributes they believe shape behaviour. But it is the invisible levels that may be of more interest to public sector organisations in terms of their influence in progressing or impeding organisational change.
Rosauer (2013) sees organizational culture as an emergence that is an extremely complex immeasurable state that results from the combination of a few simple ingredients. He outlined the three manageable ingredients that guide the culture of any business. These are Ingredient One: Employee (focus on engagement). Ingredient Two: The Work (focus on eliminating waste increasing value) waste. Ingredient Three: The Customer (focus on likelihood of referral). The purpose of the three manageable ingredients is to bring leadership, their employees, the work and the customer together for focus without distraction, leading to an improvement in culture and brand.



2.2.2 Quality, Price and Customers retention
Bradley and Parkers (2006) examine both the extent to which managers’ views on organisational culture reflect the main beliefs of management and the desires of customers’ in terms of quality and price, and how they fit within organization context. Their research investigated the idea that managers’ perceptions of ideal organisational culture in terms of the quality of service rendered is different to the interfering model of culture, which has traditionally been associated with public sector organisations. Managers prefer a culture that is more external and less control focussed, as expected will entrench quality, promote price control and bring the much desired customers satisfaction.
O’Farrell (2006) reiterates that the change to move toward practices which are more flexible and less rule bound is a huge challenge of building and indeed shifting an organizational culture in a large bureaucratic structure will drive home quality and price control mechanisms.
O’Farrell (2006) noted that optimal progress was achieved in organisational culture as Queensland Health organization earmarked $56.4 billion in extra funding through the health action plan over five years to enhance its service delivery. The department operated a new efficient structure; a new policy of conduct was effective; $3 million was invested over two years to improve the quality of workplace.
O’Farrell (2006) noted that leaders in the public sector organizations consider two questions in determining quality in an organization. What words do staff use to describe the culture of quality in the organisation? Do leaders think the description is consistent with their diagnosis of the organizations goal in terms of quality? O’ Farrell (2006) concluded that statements of quality, codes of conduct, values of public service management and so on set out in rules and regulation are simply expression. It is the job of administrators, managers and leaders to turn them into reality’.
McEvoy and Cascio(1987) meta-analysis of another 24 turnover studies indicated that an organization's stronger employees tend to have lower turnover rates than weaker employees during particular calendar periods. They found that the strength of the inverse relationship between job performance and turnover varied significantly with the length of the calendar period investigated and labour market unemployment rates but reported no moderating effects for organizational variables.
Terborg and Lee (1984) found that the variation in annual turnover rates across organizations was related to local labour market conditions and the demographic characteristics of employees but that organizational climate variables had very weak relationships with turn-over rates. This is also noted by O’Donnell (2006) in terms of culture facilitating innovative initiative in public organizations and providing a supportive environment for developing ‘enterprising leaders’.
According to the duo of Ravasi and Schultz (2006), organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behaviour for various situations. It is also the pattern of such collective behaviours and assumptions that are taught to new organizational members as a way of perceiving and, even, thinking and feeling.


2.2.3 Staff retention, Security and Customers Retention
Customers’ retention can be measured in terms recognition/recommendation, positive impression, hours spent in the hotel, customer satisfaction, high rating etc, by customers. Sheridan (1992) carried out a study on Organizational culture and employee retention. This study investigated the retention rates of 904 college graduates hired in six public accounting firms over a six-year period. Organizational culture values varied significantly among the firms. The variation in cultural values had a significant effect on the rates at which the newly hired employees voluntarily terminated employment. This is not unconnected with organizational culture and customers’ interest. The relationship between the employees' job performance and their retention also varied significantly with organizational culture values. The cultural effects were stronger than the combined influences of the labour market and the new employees' demographic characteristics. This shows that organizational culture influence of consistent employees play significant role in customers’ retention and satisfaction.
O’Farrell (2006) asserted that Bradley and Parker (2001) placed a significant prominence on the role of leaders in influencing culture in terms of how they react to crises; what the leaders pay attention to; how resources are allocated; and also that the criteria by which people (employees) are selected, promoted and noted that this have a significant influence on culture of retaining the patronage of their customers.
Kerr and Slocum (1987) further suggested that organizational culture values may moderate differences in the retention rates of strong and weak employees. They reported that some organizations have cultures that emphasize values of teamwork, security, and respect for individual members. These values foster loyalty and long-term commitment to the organizations among all employees, regardless of their job performance. Consequently, employee retention rates may be uniformly high in some organizational cultures but in other cultures may vary greatly depending on employees' job performance. This certainly promotes customers retention.
(O’Donnell & Boyle: 2008) wrote that one of the first thing a new employee learns is some of the organisation’s culture. Culture can stay with an organisation and become part of the established way of doing things. The organisation will develop ‘norms’ i.e. established (normal) expected behaviour patterns within the organisation. A norm is defined as an established behaviour pattern that is part of a culture. Culture can either facilitate or inhibit institutional transformation depending on whether or not the existing culture is aligned with the goals of the proposed change Zalami (2005)
(Schneider, 1990) provided a thoughtful analysis and integration of the development of organizational culture theory
and research. The research investigated whether particular cultural values help or hinder organizations in retaining their most productive employees to ensure quality services to their customers.
O’Farrell (2006) described a review conducted by Forster of the health system in Queensland as a good example of an organisational culture change programme and its wider implications for the whole of the Queensland public service as an organization. A commitment had been given by Queensland public servants that Queensland Health staff generally is a dedicated, professional and committed workforce, with a strong culture to do the best for patients and consumers.
In his review, Forster highlighted a number of negative features of the organisation’s culture, which he claimed would severely impede its ability to deliver the best possible standard of service to patients and consumers. These negative aspects included dysfunctional behaviours such as bullying, intimidation and a reluctance to share information, and professional ‘silos’ which reflect traditional occupational groupings.
The above study was conducted in the public accounting industry, employee gender and marital statuses, as well as market factors such as labour supply and starting salary levels, were considered important exogenous influences on professional staff retention.
Peters and Sheridan (1988) and Barkman, Sheridan, and Peters (1992) indicated that new employees' job performance wer significantly related to their retention rates. The difference in the retention rates of strong and weak performers varied widely across organizations, but no human resource management moderating variables were identified
McEvoy and Cascio's (1985) meta-analysis of 20 turnover studies indicated that some human resource management practices, such as job enrichment programs, have consistent but only moderate effects on turnover rates across organizations. Other practices, such as realistic job previews, have very weak and inconsistent effects on turnover rates.
Kerr & Slocum (1987) and Kopelman & colleagues (1990) argued that the variation in employee retention across organizations may be related to organizational culture values. These authors suggested that an organizations’ cultural values influence its human resource strategies, including selection and placement policies, promotion and development procedures, and reward systems. Different strategies result in psychological climates that foster varying levels of commitment and retention among employees. However, the consistency of employees promotes business interest. (Sheridan : 1992).
2.3 Empirical reviews
O'Reilly, Chatman, and Caldwell (1991) proposed a descriptive approach whereby respondents use a Questionnaire-sort procedure to develop a profile of values describing their organization. Over 50 dimensions of cultural values were proposed in the various questionnaire instruments researchers have designed. Rousseau (1990) grouped all these dimensions into three broad categories describing organizational values and norms regarding (1) the completion of work tasks, (2) interpersonal relationships, and (3) individual behaviour. Many of the empirical studies of organizational culture values have focused on individual or group and department levels of analysis.
Cooke & Rousseau, 1988; Hofstede et al, 1990; Kerr & Slocum, 1987 examined discrepancy in cultural values across firms but have typically sampled organizations from widely different industries. These authors noted that such a design has a potential problem of confounding variation in organizational culture values with what may be broad industry-wide differences in organizations' strategies and management practices.
Saffold (1988) suggested that macro organization-level effects on employee behaviour exist only to the extent that they demonstrate that particular cultural values are unique to certain organizations and qualitatively different from the values found in other organizations. The behavioural effect under investigation should be associated with the presence of a unique profile of cultural values found only in those organizations where the effect was observed.
Sheridan (1992) study showed that retention data were collected for all the firms' professional employees hired in this city during a six-year period. The firms hired a total of 1,014 professionals in their tax and audit departments. The study group included only the 904 recent graduates hired for entry-level positions during the study period.110 experienced professionals hired at senior management levels during the period since their mobility patterns would likely be different from those of inexperienced college graduates just entering the profession.
Personnel records indicated that 315 of these new employees (34.8%) voluntarily left their firms during the study period. Another 108 (12%) were dismissed or encouraged to leave because of low job performance or limited career potential. These terminations were classified as involuntary. There were 18 new employees (2%) who transferred to different geographical locations of the same firms for which they had been working. The remaining 463 (51.2%) were still actively employed in their initial offices during the period of the study.
The retention time for each newly hired employee was computed as the number of months that elapsed between his or her hiring and exit dates. The exit date could be a date on which employment terminated, a date on which a transfer occurred, or the last day of the study period. The voluntary retention time for transferred or active employees is a concealed measure since their total length of employment was not known. Likewise, the voluntary retention time for involuntarily terminated employees is a censored measure since it was not known how long those employees would have voluntarily stayed with the firms had they not left involuntarily. These concealed measures are still useful since they knew that the employees had not voluntarily left prior to the concealed retention time. The influence of organizational culture values on voluntary retention rates was examined through survival analysis (Sheridan: 1992)
Kopelman and colleagues (1990) noted that cultural values ultimately influence organizational effectiveness by enhancing the quality of outputs or reducing labor costs. Their study demonstrated cultural effects on the quality of firms' tax and audit work for clients. It is possible to estimate the effects on human resource costs. The estimated costs of job terminations have previously been based on the expenses incurred in replacing terminated employees. The survival model suggests an alternative method for estimating termination costs. An organization can never completely avoid replacement expenses but can delay those costs until later seniority periods by increasing the survival rates of new employees. The human resource costs thus represent an opportunity loss of not retaining new people for long.
Barkman, Sheridan, and Peters (1992) wrote that opportunity loss can be estimated by considering the gross profits generated by employees during each month of seniority. The gross profits per professional employee in public accounting can be determined by subtracting the annual costs of retaining an employee from the annual revenues he or she generates during each year of employment with a firm.
Barkman and colleagues (1992) estimated that profits in a city comparable to the one studied using the firms' average billing fees and hiring, training, and compensation costs from years corresponding to the study period. They estimated that profits ranged from $58,000 per professional employee during the first year of employment to $67,000 during the second year and $105,000 during the third year. An organization therefore incurs an opportunity loss of only $9,000 when a new employee replaces a two-year employee but incurs a $47,000 loss when an employee of three years is replaced. This showed that staff retention or consistency as an organisational culture leads to customers’ retention.
Establishing the gap and bridging it.
Conclusively, the researcher notes that from all the empirical reviews carried out and extensively discussed above, there is a gap that shows that most of the empirical reviews reflects scholarly works in the areas of organizational culture and employees productivity; organizational culture and customers’ satisfaction; and organizational culture and employees’ retention. None of the empirical works directly address this study. This therefore necessitates the gap for this study as none of the studies reviewed specifically addressed organizational culture and Customers retention. The gap is being bridged as this study intends to address Organisational culture and Customers retention.







CHAPTER THREE
METHODOLOGY
3.1 Research Design
This study adopts the research design of descriptive survey study. Nwankwo (2013:72),defined descriptive survey study as
“the design in which the researcher or investigator collects data from a large sample drawn from a given population and describes certain features of the sample as they are.”
3.2 Population of the study.
The population for this study consist of all Hotels and Hotel managers and supervisors based on their level of experience and position in all the Hotels in Port Harcourt, Rivers state. The choice of hotels managers and their supervisors for the purpose of gathering information for this study was based on their knowledge and wealth of experience on organizational culture with regard to Hotels. However, the entire population could not be studied and hence the need to select a sample that represents the entire population.
3.3 Sample and Sampling technique.
Sample involves selecting a representative number from a given population that is believed to have a common feature that exists among the elements of a given population. This study has a large population and also not adequately and explicitly defined. Therefore to determine the sample size, the cluster sampling technique using multi stage approach.
According to Nwankwo (2013:102), cluster sampling technique involves the researcher dividing the entire population for the study into groups or clusters or subgroups. This clusters or subgroups in this case are similar. In cluster sampling, a total population of interest is first divided into ‘clusters’ and from each cluster individual subjects are selected by random sampling. This approach however, may be considered overly-expensive or time consuming for the investigator. Using multi-stage sampling, investigators can instead divide these first-stage clusters further into second-stage cluster using a second element (for example, first ‘clustering’ a total population by geographic region, and next dividing each regional cluster into second-stage clusters by neighbourhood.
Multi-stage sampling begins first with the construction of the clusters. Next, the investigator identifies which elements to sample from within the clusters, and so on until they are ready to survey. Multi-stage sampling represents a more complicated form of cluster sampling in which larger clusters are further subdivided into smaller, more targeted groupings for the purposes of surveying. Despite its name, multi-stage sampling can in fact be easier to implement and can create a more representative sample of the population than a single sampling technique. Particularly in cases where a general sampling frame requires preliminary construction, multi-stage sampling can help reduce costs of large-scale survey research and limit the aspects of a population which needs to be included within the frame for sampling. (Agresti A, & Finlay, B ; 2008)
The first stage includes a cluster sample of 3 zones below of all hotels in Portharcourt. These clusters comprise hotels in the three zones that make up Portharcourt (East Senatorial district of Rivers state) only. This is shown below:
Three Cluster zones in PH and number of Hotels.
Clusters(zones) Numbers of hotels
Cluster 1 (PH zone 1) (22 hotels)

Cluster 2(PH zone 2) (20 hotels)

Cluster 3(PH zone 3) (18 hotels)



The second stage of sampling selected Cluster 2(PH zone 2)only which have 20 hotels. This was done because the sampled zone comprised mainly of hotels located within the core Portharcourt city. This is shown in the table below:
Sampled cluster
Sampled Cluster(zone) Numbers of hotels
Cluster 2( PH zone 2) 20 hotels

The third stage entail a total sample of 374 managers and supervisors, who were then, administered questionnaires across the 20 hotels in cluster Portharcourt zone 2. This is shown below:
Cluster 2
(PH zone) Names Of Hotels Sample size of managers/Supervisors
1 Hotel Presidential, Port Harcourt 28
2 The Novotel Hotel, Port Harcourt 24
3
The Elkan, Terrace, Port Harcourt. 21
4 Sparkyln Hotels &Suites,GRA, Port Harcourt. 21
5 Southern Star Hotel & Towers, Port Harcourt. 21
6 Golden Tulip Hotels, Port Harcourt 21
7 Swiss International Mabise, Port Harcourt. 20
8 Dannic Hotel, Port Harcourt. 20
9 Hotel De Excellence, Port Harcourt 20
10 Genesis Place, Port Harcourt 20
11 Best Premier Hotel & Resorts, Port Harcourt. 20
12 Riviera Homes, Port Harcourt. 20
13 Bellaza De Sophia Hotel, Port Harcourt 20
14 Garden City, Marriot Hotels, Port Harcourt. 19
15 Benitex Hotels, Port Harcourt. 19
16 Juanita Hotel, Port Harcourt. 17
17 The Gold Prince Hotel, Port Harcourt.
18 Toki Hotels, Port Harcourt. 16
19 Embassy Hotel limited, Port Harcourt. 14
20 Protea Hotel Garden City, Port Harcourt. 13

Total 374

A total of 374 managers and supervisors from the top, intermediate and junior cadres based on their level of experience and position in all the organizational hierarchy of the selected hotel were therefore used as sample for this study.
3.4 Nature/Sources of data
There are the primary and secondary data. The data for the study consist of primary data which were obtained from a cross-sectional survey method with the instrument of questionnaire designed by the researcher.
3.5 Method of Data collection/Instrumentation
The questionnaires were administered and collected personally from respondents immediately after completion. The questionnaire was made up of a total of 17 items in both sections “A” & “B” .Section A represents socio demographic data and has four (4) items, while section B contains thirteen (13) items structured on a four (4) point weighted likert scale. Fubara (1995) asserted that a scale questionnaire is a questionnaire in which respondents grade their responses to reflect their degree of agreement to a variable item.
Table 2: Grading Scale

Classification
Grade
Points
Strongly Agree SA 4
Agree A 3
Disagree D 2
Strongly Disagree SD 1

The questionnaires were designed to contain questions and gather information on each variable of organization culture in relationship to customers’ retention. The questionnaires were then administered personally by the researcher to selected managers in selected Hotels in Port Harcourt, Rivers State.
3.6 Method of Data analysis
The data collected from the questionnaire administered were coded and keyed into SPSS version 20. First, the sample characteristics and the nature of each variable were presented using descriptive statistics of mean .A criterion mean of 2.50 was adopted. This was obtained by adding the weights of 4,3, 2 and 1 and dividing it by 4 as shown below: (4+3+2+1)/4=2.5. This was used in taking decision for all the research questions.
Using statistical package for social sciences (SPSS), Spearman Rank Order correlation coefficient (spearman’s rho) statistical technique was adopted, to evaluate the empirical relationship between the independent variables (Organizational Culture: Price, Quality, Staff retention and Security) and the dependent variable (Customers retention).
The data for this study is measured in ordinal or ranking scale. According to Asika (2001), data is measured in ordinal or ranking scale. This refers to procedure of grading or assignment of numbers to variables placed in rank order. (Sekaran: 2003) noted that the Spearman Rank Order correlation coefficient (spearman’s rho) analysis technique is adopted where the two variables are ordinal, interval or ratio scales.



CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Presentation of data.
This chapter discusses the presentation of data. A total of 374 questionnaires were administered.374 representing 100% were returned successfully and was adopted for this study
Table 4.1 showing of distributed questionnaires.
Number (%)
Questionnaires administered 374 100
Questionnaires returned 374 100
Questionnaires adopted. 374 100
Source: SPSS data output
Table 4.2 showing demographic data for gender
Gender Frequency (%)
Male 190 51
Female 184 49
Total 374 100
The above table shows that 51% of the respondents are male, while 49% are female. This show that majority of the respondents are male, compared to female.
Table 4.3 showing demographic data for marital status
Gender Frequency (%)
Single 101 27.0
Married 188 50.3
Others 85 22.7
Total 374 100

The table above shows that 27% of the respondents are single, 50.3% is married, while 22.7% belong to other unidentified marital group. This show that majority of the respondents are married, compared to others and single.






Table 4.4 showing demographic data for level of education
Level of education Frequency (%)
Primary 0 0
Secondary 0 0
Tertiary 374 100
Total 374 100

The table above show that 100% of the respondents have tertiary education, 0% have secondary education, while 0% have primary education. This show that majority of the respondents had tertiary education, compared to those who had secondary and primary education only.
Table 4.5 showing demographic data for years of experience
Level of Frequency (%)
0-10 years 300 80.2
Above 10 years 74 19.8
Total 374 100
The table above show that 19.8 % of the respondents have 10 years and above experience, while 80.2% have 0 to 10 years experience. This show that majority of the respondents had 0 and 10 years managerial experience, compared to those without lengthy managerial experience.
4.2 ANSWERING THE RESEARCH QUESTIONS
Tables of Results and mean analysis.
Research Question One: How do the value for price measures patronage?
Table 4.6 Value for Price and patronage.
S/N Items Strongly
Agreed Agreed disagreed Strongly disagreed Total Mean
1 The higher the price rates of Hotels, the lower the patronage. 130 121 59 64 374




2.85





2 Price rates of Hotels have no influence on customers’ decision 152 169 34 19 374




3.21





Mean average 3.03
Source: Data Survey, 2016.
Table 4.6 above shows the analysis of the respondents. The analysis indicated a mean of 3.03 which is above the criterion mean of 2.50. This shows that value for price measures patronage in selected hotels in Rivers state.
Research Question Two: What is the relationship between the measure of the value for price and profitability?
Table 4.7 Value for Price and profitability.

S/N Items Strongly
Agreed Agreed Disagreed Strongly disagreed Total Mean

3 Customers patronize Hotel based on rankings 107 199 60 08 374






3.08






4 Hotel operators inconsistent approach has nothing to do with price rates 152 201 15 06 374






3.33







Mean average 3.21
Source: Data Survey, 2016.
Table 4.7 above shows the analysis of the respondents. The analysis indicated a mean of 3.21 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for price and profitability.
Research Question Three: What is the relationship between the measure for value for quality services and patronage?
Table 4.8 Value for Quality services and patronage.
S/N Items Strongly
Agreed Agreed Disagreed Strongly disagreed Total Mean
5 The higher the patronage, the better the quality of service. 177 124 50 23 374





3.22




6 Cost of services depends on the availability of customers 152 108 56 58 374




2.94





Mean average 3.08
Source: Data Survey, 2016.
Table 4.8 above shows the analysis of the respondents. The analysis revealed a mean of 3.08 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for quality services and patronage
Research Question Four: Is there a relationship between the measure of the value for quality services and profitability?

Table 4.9 Value for quality services and profitability.
S/N Items Strongly
Agreed Agreed disagreed Strongly disagreed Total Mean
7 Profitability of Hotel depends on ranking and proximity(quality) 180 144 28 22 374










Mean average 3.29
Source: Data Survey, 2016.
Table 4.9 above shows the analysis of the respondents. The analysis revealed a mean of 3.29 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for quality services and profitability.





Research Question Five: Is there a relationship between the measure of the value for staff retention and patronage?

Table 4.10 Value for staff retention and patronage.
S/N Items Strongly
Agreed Agreed Disagreed Strongly disagreed Total Mean
8 Consistency of staff retains customers 166 129 13 66 374





Mean average 3.06
Source: Data Survey, 2016.
Table 4.10 above shows the analysis of the respondents. The analysis revealed a mean of 3.06 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for staff retention and patronage
Research Question Six: Is there a relationship between the measure of the value for staff retention and profitability?
Table 4.11 Value for staff retention and profitability.
S/N Items Strongly
Agreed Agreed Disagreed Strongly disagreed Total Mean
9 Customers patronage is not guided by staff retention rather on the availability of services 176 145 03 50 374




3.20



Mean average 3.20
Source: Data Survey, 2016.
Table 4.11 above shows the analysis of the respondents. The analysis depicts a mean of 3.20 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for staff retention and profitability.
Research Question Seven: How do the measure of the value for security relate with patronage?
Table 4.12 Value for security and patronage.
S/N Items Strongly
Agreed Agreed Disagreed Strongly disagreed Total Mean
10 Secured environment promote customers services 177 134 61 02 374






3.30






3.30
Source: Data Survey, 2016.
Table 4.12 above shows the analysis of the respondents. The analysis shows a mean of 3.30 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for security and patronage.

Research Question Eight: What is the relationship between the measure of the value for security and profitability?
Table 4.13 Value for security and profitability.
S/N Items Strongly
Agreed Agreed Disagreed Strongly disagreed Total Mean
11 The value for ensuring security depends on ratings of hotels 200 121 5 16 374





3.18





Mean average 3.18
Source: Data Survey, 2016.
Table 4.13 above shows the analysis of the respondents. The analysis shows a mean of 3.18 which is above the criterion mean of 2.50. This shows that there is relationship between the measure of the value for security and profitability.

4.3 TESTING OF HYPOTHESES
Ho1: There is no significant relationship between the measure of value for price and patronage.
Table 4.14: Relationship between price and patronage
Value for Price patronage
Spearman's rho Value for price
Correlation Coefficient 1.000 .144
Sig. (2-tailed) . .088
N 374 374
Patronage
Correlation Coefficient .144 1.000
Sig. (2-tailed) .088 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:14 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:14 above indicates that there was a positive relationship between the value for price and patronage (Spearman’s Rho: 0.88,0.144 p>0.05). Therefore hypothesis One (1) is therefore rejected. Thus, there is significant relationship between the measure of value for price and patronage.
Ho2: There is no significant relationship between the measure of value for price and profitability.
Table 4.15: Relationship between price and profitability
Value for Price profitablity
Spearman's rho Value for price
Correlation Coefficient 1.000 .91
Sig. (2-tailed) . .065
N 374 374
Profitability
Correlation Coefficient .91 1.000
Sig. (2-tailed) .065 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:15 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:15 above reveals that there was a positive relationship between the value for price and profitability (Spearman’s Rho: 0.91,0.65 p>0.05). Therefore hypothesis two (2) is therefore rejected. Thus, there is significant relationship between the measure of value for price and profitability.

Ho3: There is no significant relationship between the measure of quality of services and patronage.
Table 4.16: Relationship between measure for quality of services and patronage.
Services patronage
Spearman's rho Quality for Services
Correlation Coefficient 1.000 .88
Sig. (2-tailed) . .049
N 374 374
Patronage
Correlation Coefficient .88 1.000
Sig. (2-tailed) .049 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:16 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:16 above shows that there was a positive relationship between the value for quality of services and patronage (Spearman’s Rho: .88, 0.49 p>0.05). Therefore hypothesis three (3) is therefore rejected. Thus, there is significant relationship between value for quality of services and patronage

Ho4: There is no significant relationship between the measure of quality of services and profitability.
Table 4.17: Relationship between measure for quality of services and profitability.
Quality of Services Profitability.

Spearman's rho Quality for Services
Correlation Coefficient 1.000 .71
Sig. (2-tailed) . .61
N 374 374
Profitability.

Correlation Coefficient .71 1.000
Sig. (2-tailed) .61 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:17 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:17 above shows that there was a positive relationship between the value for quality of services and profitability (Spearman’s Rho: 0.71,0.61 p>0.05). Therefore hypothesis four(4) is therefore rejected. Thus, there is significant relationship between value for quality of services and profitability.
Ho5: There is significant relationship between the measure of value for retention of staff and patronage.

Table 4.18: Relationship between measure for retention of staff and patronage.
Retention of staff patronage
Spearman's rho Retention of staff
Correlation Coefficient 1.000 .99
Sig. (2-tailed) . .054
N 374 374
Patronage
Correlation Coefficient .99 1.000
Sig. (2-tailed) .054 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:18 was tested. The result of the data analysis above shows that there was a positive relationship between the value for retention of staff and patronage (Spearman’s Rho: .99, .054 p>0.05). Therefore hypothesis five (5) is therefore rejected. Thus, there is significant relationship between value for retention of staff and patronage
Ho6: There is no significant relationship between the measure of retention of staff and profitability.
Table 4.19: Relationship between measure retention of staff and profitability.
Retention of staff Profitability.

Spearman's rho Retention of staff
Correlation Coefficient 1.000 .85
Sig. (2-tailed) . .62
N 374 374
Profitability

Correlation Coefficient .85 1.000
Sig. (2-tailed) .62 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:19 was tested using the spearman rank correlation coefficient. The result of the data analysis in table 4:19 above shows that there was a positive relationship between the measure for retention of staff and profitability (Spearman’s Rho: 0.85, 0.62 p>0.05). Therefore hypothesis six(6) is therefore rejected. Thus, there is significant relationship between retention of staff and profitability.
Ho7: There is significant relationship between the measure of the value for security and patronage
Table 4.20: Relationship between measure of the value for security and patronage.
Value for security Patronage
Spearman's rho Value for security
Correlation Coefficient 1.000 .92
Sig. (2-tailed) . .077
N 374 374
Patronage
Correlation Coefficient .92 1.000
Sig. (2-tailed) .077 .
N
374 374

Source: Data Survey, 2016

The data in Table 4:20 was tested. The result of the data analysis above shows that there was a positive relationship between the value for value for security and patronage (Spearman’s Rho: .92, .077 p>0.05). Therefore hypothesis seven (7) is therefore rejected. Thus, there is significant relationship between value for security and patronage.

Ho8: There is no significant relationship between the measure of the value for security and profitability.
Table 4.21: Relationship between measure of the value for security and profitability.
Value for security Profitabili
CHAPTER ONE
INTRODUCTION
1.1 Background to the study.
Organizations today are ever changing their business environment to overcome challenges posed by macro and micro economic volatilities, stiff competition and technological advancement, as well as social changes. Firms now pay particular attention to customers’ satisfaction and retention as a crucial strategy for organizational sustainability. The Merriam Webster (2003) dictionary defines Organisation as an organized group of people with a particular purpose such as business or government department.
The demand from every organization is a derived demand earmarked to optimize profit, sustain income and survive amidst challenges at all cost. Thus organizations hire professionals because of real or anticipated need for their services to ensure the attainment of organizational main objective of customers’ retention. Most organizations realized that the success of any organization depends on the value they place on customers (Chinonye, 2015)
One way they attempt to achieve this value is closely linked to and greatly affected by their Organisational Culture. Organizational culture often work in consonance with and strongly influences activities that aid customers retention along with service prompt, courtesy, personal relationship, handling of complaints, environmental hygiene, prices placed on customers services and complaints. Most Hotels today are out of business basically because of the low value they attach to customers retention. The values of the price attached to the services rendered are not properly addressed as most hotel price rates are relatively high. The same applies to the quality of their services, frequent replacement of their staff and general security.
Mclaughlin (2003) wrote that Organisational culture is a system of shared assumptions, values and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they dress, act and perform their duties. Every organization develops and maintains a unique culture, which provides guidelines and boundaries for the behaviour of the members of the organization (Mclaughlin: 2003). To an extent, Organizational culture dictates how employees dress, act and perform their jobs. However, culture is a broad term that addresses belief. The values of price, quality of services, staff retention and security is key to defining culture in this context
Customer retention refers to the activities and actions companies and organizations take to reduce the number of customer defections. The goal of customer retention programs is to help companies retain as many customers as possible, often through customer loyalty and brand loyalty initiatives.
It is important to remember that customer retention begins with the first contact a customer has with a company and continues throughout the entire lifetime of the relationship. While most companies traditionally spend more money on customer acquisition because they view it as a quick and effective way of increasing revenue, customer retention often is faster and, on average, costs up to seven times less than customer acquisition. Selling to customers with whom an organization already has a relationship is often a more effective way of growing revenue because companies don’t need to attract, educate, and convert new ones if the old ones are retained.
Business Dictionary (2013) defines a Hotel as commercial establishment providing lodging, meals, and other guest services. In general, to be called a hotel, an establishment must have a minimum of six letting rooms, at least three of which must have attached (ensuite) private bathroom facilities
Hotels are service organisation which (customers) provides people (customers) with comfortable but non- permanent accommodation. In the past hotel businesses served limited function but now they function as business exchange centres, centre for socialization, places of public assembly, deliberation, political meetings, vacations, church services and several other purposes. This broaden scope of business has a number of implications and challenges including security, hygiene and personal relationships.
These hotels which have built strong culture to cater for these stand better chance of retaining their customers and enjoying better patronage the those who have not. It goes beyond having facilities and technology. Those that recognize that the customer is at the hub of the firm and profit are more likely to do well. Another important component is the staffing component.
Organization that have a good culture of caring staff and strengthening staff commitments are likely to retain customers because more often than not it is the staff that deal directly with the customer. In cases where labour turnover is high and customers have to deal with employees each time , they are not likely to remain. Organisational culture can be conversely as weak or strong depending on their ability to secure staff.

1.2 Statement of the Problem
Organizational culture encompasses values and behaviours that contribute to the unique social and psychological environment of an organization. Organisational cultures exist where staff responds to needs because of their alignment to organizational values. Strong organisational values help firms operate like well-oiled machines, engaging in outstanding business with only minor adjustments to existing procedures as needed.
Customers consistent patronage and profitability remains the indicators for measuring the values of price, quality of services, staff retention and security of Hotels. Most Hotels in Rivers state today are expressing serious challenges in maintaining and strengthening their organisational values. This is so because Hotels lack critical values of maintaining steady price rates, quality service, staff retention and security. The price rate of using the services of some hotels are relatively very high compared to the current economic situation especially in the face of the present day economic recession ravaging the country.
The customers desire to retain the services of a hotel lies on their consistent patronage and this measure the values for the price or amount they are willing to part with. Most Hotels operators still do not see the need to cut down the cost of their price rates rather they are increasing these rates on almost daily basis making customers patronage very difficult and at the same time leading to their own dwindling profits. Basically, the measure of customers retention is carried out based on customers patronage and the profit made by Hotels. When Hotels begin to express dwindling patronage, it affects their profitability and ability to remain in business. Most customers who cannot patronize are compelled to take to alternatives. Recent record show that the level of patronage in some first grade hotels such as Hotel Presidential, Port Harcourt The Novotel Hotel, Port Harcourt The Elkan, Terrace, Port Harcourt. The Elkan, Terrace, Port Harcourt. Sparkyln Hotels &Suites, GRA, Port Harcourt. Southern Star Hotel & Towers, Port Harcourt Golden Tulip Hotels, Port Harcourt Swiss International Mabise, Port Harcourt and Dannic Hotel, Port Harcourt have drastically reduced because these hotels maintain their high price rate of lodging and other services in spite the present harsh reality of recession.
In terms of quality, most hotels have reduced the quality of the services rendered as a result of the high cost of managing the hotel as a business. The low patronage of customers has forced many hotels to experience low profits and this has led to many completely folding up. This is because most customers complained of poor services in terms of quality.
Similarly, most first grade hotels now have lower ranking because of their inability to retain their staff due to the present financial situation in the country. Customer patronage has been relatively very low leading to poor profits to the hotels. This have also affected their operations as most hotels are forced to prone down on the numbers of the managers, supervisors and other staff they have. This action definitely have affected their customers as customers who are used to them are now exposed inadequate services or attention since the quality of services is measured by consistent customers patronage.
Security has also had its fair share of the challenges of managing hotels and encouraging customers patronage. The value of providing 24 hours, 7 days in a week security in most hotels today have become a mirage as most hotels are struggling to meet the high cost of sustaining their businesses due to low profit occasioned by low patronage and paying little or no attention to improving the values of security.
According to O’Farrell (2006), where there is weak culture, there is little alignment with organizational values and control must be exercised. Conversely, where organisation culture of customers’ retention is strong, there is expected to be optimum patronage and high turnover.
From the above therefore, the value of price, quality, staffing, and security in optimizing customers’ retention is still lacking, as most Hotels still have not responded strongly and adequately to these organisational values yet due to the present economic recession. The problem of lack of strong organisational value affects organisations operating in the service sector such as Hotels since members of these organizations are responsible for delivering the hospitality service and ensuring customers retention. A lot of contending issues explains why the organisational values in hotels today influence customers’ decision to continue to patronize hotels or not.
Hotels still have challenges managing customers’ retention as a result of value deficiencies in price control, quality, staffing, and security. The high price menu of first grade hotels in Rivers state are very high, coupled with their poor services, inability to retain staff and general security as a result of weak values accounts for poor customers’ retention forcing some of these hotels to close down indefinitely.
As a result of the above, it is therefore based on the above, that the researcher has chosen to examine the interplay of organizational values independent variables such as Price, Quality, Staff consistency and Security. This study is therefore intended to investigate the relationship between the values for price, quality of service, staff retention, security and Customer retention in selected Hotels in Port Harcourt, Rivers state.










1.3 Conceptual framework.
Fig .1.1 Researcher conceptual model/ framework of the relationship between the measures of Organisational values and customers retention as well as moderating variable.
Researcher Conceptualized model,2016.
1.4 Aim and Objectives of the study.
The aim of the study is to investigate organisational culture and customer retention in selected Hotels in Port Harcourt, Rivers state. In specific terms, the objectives of this study are:
1. To investigate the relationship between the measure of the value for price and patronage.
2. To investigate the relationship between the measure of the value for price and profitability.
3. To find out the relationship between the measure of the value for quality service and patronage.
4. To find out the relationship between the measure of the value for quality service and profitability.
5. To examine the relationship between the measure of the value for staff consistency and patronage.
6. To examine the relationship between the measure of the value for staff consistency and profitability
7. To determine the relationship between the measure of the value for security and patronage.

8. To determine the relationship between the measure of the value for security and profitability.

1.5 Research questions
1. How do the value for price measures patronage?
2. What is the relationship between the measure of the value for price and profitability?
3. What is the relationship between the measure for value for quality services and patronage?
4. Is there a relationship between the measure of the value for quality services and profitability?
5. Is there a relationship between the measure of the value for staff retention and patronage?
6. Is there a relationship between the measure of the value for staff retention and profitability?
7. How do the measure of the value for security relate with patronage?
8. What is the relationship between the measure of the value for security and profitability?

1.6 Research hypotheses
The following alternative hypotheses will be tested to guide this study.
Ho1: There is no significant relationship between the measure of value for price and patronage.
Ho2: There is no significant relationship between measure of the value for price and profitability.
Ho3: There is no significant relationship between the measure of value for quality of services and patronage.
Ho4: There is no significant relationship between the measure of value for quality of services and profitability.
Ho5: There is no significant relationship between the measure of value for retention of staff and patronage.
Ho6: There is no significant relationship between the measure of value for retention of staff and profitability.
Ho7: There is no significant relationship between the measure of the value for security and patronage.

Ho8: There is significant relationship between the measure of value for security and profitability.
1.7 Significance of the study
This study, organizational culture and customer’s retention will be of benefit in so many ways. This study has academic, policy and practical implications. It is hoped that the findings will be of great significance to several groups of people consisting hotel business outfit owners, policy makers in the Tourism and Hospitality business and the general public. The study when completed will bring to limelight the extent of the role of organisational culture as a strategy for customers’ retention.
Organisations particularly the Hotel business will become increasing aware that cultures such as price , quality, staff retention and security when consistently used as strategies relates with customers’ retention. These organisational culture promote customers retention. This study will be of immense benefit to Hotel business owners because it will provide a working tool for them to promote their business through effective and efficient organisational cultures such as courtesy, personal relationship, hygiene, security and encourage them to think out of the box by strengthening the human resources department of their hotels to optimize customers’ retention and promote profit.
This study will contribute to the knowledge scope of policy makers in the Tourism and Hospitality business to explore ways of further promoting organisational culture towards ensuring customers retention so as to help hospitality business owners remain in business. This study would also contribute to the world literature which will help other researchers for further research.

1.8 Scope of the study.
The scope of this study is expressed based on geographical coverage and the content is based on the above. The study covers some selected Hotels in Port Harcourt in Rivers State. While in content, the study covers the independent variables of organisational cultures (such as price, quality, staff retention and security) as it relates with customers retention in some selected Hotels in Port Harcourt, Rivers state.
1.9 Study Area.
Rivers State is the area of this study. River is located in the south Nigeria. Rivers state was created out of the old Eastern Region in 1967 with its capital in Port harcourt. The state has twenty-three (23)Local Government Areas. Rivers state is bounded in the south by the Atlantic Ocean, in the north by Anambra, Imo and Abia states, in the east by Akwa Ibom state and in the west by Bayelsa and Delta states. It has an area of 11,077km2 and a population of 295, 774 at the 2006 census. Rivers state has a total of 297 registered standard Hotels.
Table 1: First 20 Hotels in Rivers state and their rankings.
S/N Names Of Hotels Ranking
1 Hotel Presidential, Port Harcourt 1st
2 The Novotel Hotel, Port Harcourt 2nd
3 The Elkan, Terrace, Port Harcourt.
Sparkyln Hotels &Suites,GRA, Port Harcourt. 3rd
4th
4
5 Southern Star Hotel & Towers, Port Harcourt. 5th
6 Golden Tulip Hotels, Port Harcourt 6th
7 Swiss International Mabise, Port Harcourt. 7th
8 Dannic Hotel, Port Harcourt. 8th
9 Hotel De Excellence, Port Harcourt 9th
10 Genesis Place, Port Harcourt 10th
11 Best Premier Hotel & Resorts, Port Harcourt. 11th
12 Riviera Homes, Port Harcourt. 12th
13 Bellaza De Sophia Hotel, Port Harcourt 13th
14 Garden City, Marriot Hotels, Port Harcourt. 14th
15 Benitex Hotels, Port Harcourt. 15th
16 Juanita Hotel, Port Harcourt. 16th
17 The Gold Prince Hotel, Port Harcourt. 17th
18 Toki Hotels, Port Harcourt. 18th
19 Embassy Hotel limited, Port Harcourt. 19th
20 Protea Hotel Garden City, Port Harcourt.
Total 20th



Definition of concepts
Organization: A group of people or other legal entities with an explicit purpose and written rules. A Hotel is an example of an organisation.
Culture: The beliefs, values, behaviour and material objects that constitute a people’s way of life. This include the way things are done in a place or an organisation.
Customer: A patron; one who purchases or receives a product or service from a business or merchant, or intends to do so. Retention: The act of retaining or something retained.
Value for price: This means the value in amount attached to good and services rendered by an organisation.
Value for quality of services: This refers to the value attached to a property or an attribute that differentiates a thing or person. The value attached to services rendered by a hotel is the value for quality.
Staff: The employees of a business
Value for staff retention: The degree or value to which organisation such as a hotel retains their staff or the frequency to which they sack their staff.
Value for security: The value attached to the protection of customers and the condition of ensuring they are not threatened, especially physically, psychologically, emotionally or finally.







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