Influence of Ethical Leadership and Talent Management on Employee Performance: Does Employee Commitment Matter in Malaysian Hotel Industry?

Abstract

Purpose-The purpose of this study is to examine the influences of ethical leadership and talent management on hotel front desk employees’ performance. This study also tests the mediating effect of employee commitment in the relationship between ethical leadership, talent management and employee performance. Leader member exchange theory and social exchange theory has been used as the underlying theories for the framework in this study.Methodology-Data is collected through online questionnaire distributed to front desk employees working in One-star, two- star and three-star hotels around Malaysia particularly in Penang and Kuala Lumpur. 150 usable questionnaires are collected from the targeted respondents. Sample size have been identified using G power software and Partial Least Square (PLS) is used to analyze data.Findings - The findings of this study show that the ethical leadership does not have significant relationship with employee commitments, while talent management has a positive and significant relationship with employee commitments. This study also confirms the mediating effect of employee commitments between the relationship of talent management and employee performance.Contribution -The current study contributes towards the body of knowledge by incorporating leader member exchange theory and social exchange theory. This study also contributes by proving the mediating effect of employee commitment in the hotel industry. The study provides information for hotel managers about why and under what circumstances employees perform better.