Employee Commitment and Restaurant Profitability

Abstract

A pilot study was conducted in two Las Vegas restaurants. Both restaurants were operating at a loss and suffering from a lack of employee commitment. Previous research has identified a relationship between effective people management and a firm's financial success. In response to managers' request, this study applies qualitative methods to explore the underlying reasons for the lack of employee commitment. The study concluded that the employees did not identify with their companies' values, which was manifested in their complete lack of internalization levels of commitment. Management implications include the need to communicate the companies' values to the employees and the establishment of a service culture in order to create employee and customer loyalty.