The International Journal of Business Management and Technology, Volume 4 Issue 2 March–April 2020

ISSN: 2581-3889

Research Article Open Access

Structural Equation Model on Organization Communication

Satisfaction of Hotel Employees in Region XII

Cogollo, Lovina Penalber*

The Professional School, University of Mindanao, Davao City
Faculty, Sultan Kudarat State University, Tacurong City, Philippines

Viado, Myrna S.
Co-author, Professor, University of Mindanao,
Davao City, Philippines

ABSTRACT: This study aimed to develop the best fit model on organization communication satisfaction of hotel
employees using structural equation modelling (SEM) as the fundamental statistical tool to analyse the interrelationship
among the constructs of organizational efficacy, service climate, social exchange and organization communication
satisfaction. It employed descriptive-correlational research design and used stratified-random sampling technique in
choosing the 402 hotel employees. Mean, Pearson Product Moment Correlation, Multiple Regression and Structural
Equation Modelling were applied as statistical tools to the levels, interrelationships, influence, and explored the best fit
model of the constructs respectively. Signifcant relationships of the three constructs with organization communication
satisfaction were established. Organizational efficacy and service climate were always observed while social exchanged
and organization communication satisfaction were sometimes observed by the respondents. When regressed, it was
found that service climate and social exchange influenced organization communication satisfaction. The best fit model of
organization communication satisfaction is model 5. The model showed that organizational efficacy as indicated by
sense of resilience and social exchange as indicated by experiential information, emotional support, humour exchanged
and exchange outside meetings best predict organization communication satisfaction as indicated by organizational
integration, supervisor communication and media quality.

Keywords: management organizational efficacy, service climate, social exchange organization communication satisfaction, SEM,
Philippines.

I. INTRODUCTION

Rationale

Communication plays a significant role in informative transmission within any organization. A leader of an
organization needs to be pleased with the communication practices in his organization, in order to work effectively
(Saurabh et al 2013). Communication is the sustenance of any organisation and the success of a business enterprise to a
great extent will depend upon the efficient and effective communication (Bisen&Priya, 2008). It is also seen as one of the
most important issues for administrators and workers in the workplace (Cascio, 2000).

As cited by Kaul (2017) in his article, the statements of Robert Kent, previous dean of Harvard Business School,
that in business, communication is so important. It is often called a soft skill communication offers an crucial link
between and among all fundamental functions in an organization. When administration had commendably engaged in
all types of written and oral communication, the organization develops its profitability and credibility within the
business community. This is affirmed by Wyatt (2004), that the key driver of superior performance were connections
and favourable organization-employee relationships.

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

Organization communication satisfaction is worthy to be investigated (Tsai, Chuang, & Hsieh, 2009). The level
of communication satisfaction where supervisors and managers are open to suggestions, listen and pay attention, and
have guidance to address job-related problems and feedback.

As reported in Malekane's study (2014), he found out that in order for an organization to use its purpose to its
best possible level, good internal communication features often need to be worked out with employee satisfaction and
communication efficiency. The combinations between these activities ensure that employers and employees are
considerate about the vision of the organization where it is heading. However, contact satisfaction of workplace
organizations in global companies remains unexplored (Snape and Redman, 2010). Employees are said to be one of the
core factors in the effective operation of the hospitality sector, driving competitive advantages in the hotel industry. If
the company has the right staff, the probability of success for any firm can be significantly improved (Connor, et.al.,
2003; Karatepe et al., 2009).

In Hong, et.al. (2013) research, organizations are advised to promote a positive service environment as it directs
employee attitudes and behaviors and is a key factor in organizational success (Kusluvanet.al., 2010). Service climate
study, however, has focused heavily on assessing the perceptions of customers (Bowen and Schneider, 2014), their
satisfaction, and the effect on the financial performance of the business.

Service workers who have encountered positive leadership (supervisor support) and participant (co-worker
support in the same team and interdepartmental support), relationships are likely to experience a higher degree of
support, resulting in greater commitment to organizational objectives (Snape and Redman, 2010). Co-worker support,
inter-departmental support and supervisor support collected can be perceived as internal customer service. The main
assertion from the Social Exchange Theory (SET) is that a firm's partnership relationships are a social exchange network.

Based on these discussions, organization communication satisfaction still remain unexplored, hence, there
should be a further research to be conducted on the relationships between and among other organizational issues that
either positively or negatively affect the organization communication satisfaction of hotel employees.

It is on the above context that the researcher decided to conduct the study dealing with the three variables as a
construct of organization communication satisfaction. While there are existing studies on the link of each mentioned
variable to organization communication satisfaction, those studies are in bivariate relationships only and conducted
separately by different researchers.

This study, however, is a superior version of those individual studies considering that it covers the four
variables in the study with the hope of producing a model for organization communication satisfaction specifically for
hotel employees making this study will become a meaningful contribution to new knowledge, hence the conduct of this
study.

II. MATERIALS AND METHODS

Research Design

This study employed quantitative research design utilizing descriptive-correlational technique. This is used to
develop and employ mathematical models, theories and or hypothesis pertaining to a phenomenon. In the extraction of
the best fit model, structural equation model was used. First, it utilized descriptive correlational method. According to
Gill (2013), a descriptive study entails describing a certain aspect of a group of individuals whose responses are
continuous data where simple means on the average level is depicted. On one hand, correlation is used to investigate
and measure the connection between two or more variables.

The study used structural equation modelling that aims to come up with the best fit model on organization
communication satisfaction that may help hotel businesses attract, select and retain employees. This is a multivariate
technique to scrutinize multiple dependence relationships among the variables at the same time (Bose, 2019).
Specifically, this research examined the interrelationship of organizational efficacy, service climate, social exchange and
organization communication satisfaction among hotel employees.

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

Structural equation modelling is a complex method of data analysis as compared to other statistical method. It
is a mathematical tool used for delineating causal conclusions from a fusion of observational data and theoretical
assumptions (Bhatta, Albert, Kahana&Lekhak, 2017; Hair, Babin&Krey, 2017; Pearl, 2012.

This study used the normal theory methods in the parameter estimates due to the large sample to have
asymptomatically biased, efficient and consistent due to sample estimate convergence (Tomarken, 2005).

Research Locale

The study was conducted in the SOCSKSARGEN Region, designated as Region XII, one of the regions in the
Philippines situated in the central portion of Mindanao. It is consisted of four provinces, namely: South Cotabato, Sultan
Kudarat, Sarangani and North Cotabato.

The respondents of this study were the hotel employees in Region XII specifically from General Santos City,
Koronadal City, Tacurong City, Kidapawan City and Isulan, Sultan Kudarat. Survey questionnaires were administered
in the said areas.

As of this writing, hotel employees in Region XII can take any challenges, can work effectively with groups to
accomplish a goal, responds to customer’ feedback and suggestions quickly. Supervisors and employees were
optimistic to accomplish their goals.

Population and Sample

Scientific process was employed in choosing the respondents. Stratified-random sampling was used in
determining the respondents. A random sample was done where participants of the population were first divided into
strata, then they are randomly selected to be a part of the sample (Boodie, 2018). A total of 402 completed surveys were
made which was way higher than the maximum number of 400 at 0.05 significance level (Davis and Cosenza 2005).
Respondents of the study were the existing employees from hotel establishments in Region XII. Of the 402 respondents,
100 were from General Santos City, 95 from Koronadal City, 80 from Tacurong City, 65 from Kidapawan City, and 62
from Isulan, Sultan Kudarat.

Employees who have rendered of at least three (3) months of service in the industry were considered as
respondents. On other hand, those newly appointed employees with less than three (3) months of service as well as with
those outside the locale of the study were excluded. Respondents can withdraw anytime he/she feels uncomfortable,
intimidated or there is actual and perceived threat physically, psychologically, or emotionally.

Data gathering was conducted from October, 2019 to November 2019.

Research Instrument

Primary data were used in gathering data about the study constructs which include organization
communication satisfaction, organizational efficacy, service climate and social exchange. The survey questionnaires
utilized was sourced from various related researches with some modification to fit in the respondents of the study.
Restructuring was carried out to make the instrument more applicable to current local business setting.

The survey on organizational efficacy was adapted from Bohn (2001). The said instrument was designed to
measure the organizational efficacies of hotels based on three factors, namely: collective capability, sense of mission and
sense of resilience.The responses of study participants are interpreted using

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

The survey instrument on service climate was adapted from the study of He, et.al. (2010). The instrument was
designed to measure the service climate as perceived by hotel employees based on three factors, namely; customer
orientation, managerial support and work facilitation. Responses of study participants are interpreted using the scale
below:

The survey instrument on social exchange was adapted from the study of Brown et al (2014). The instrument
was designed to measure the social exchange as perceived by hotel employees based on the four indicators, as emotional
support, experiential information, humor exchanged, and exchange outside meetings. The responses of study
participants are interpreted using the scale below:

The survey instrument in Organization communication satisfaction was adapted from the study of Iyer et al
(2012) based on five indicators, organization integration, personal feedback, communication climate, supervisor
communication and media qualityThe responses of study participants are interpreted using the scale below:

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

Data Collection

Several procedures were performed in collecting the data used in the study. The first procedure was the
acquisition of consent to administer the study.it was secured from the University Of Mindanao Ethics Review
Committee (UMERC) last October 15, 2019. After the receipt of a certification from UMERC, the researcher conducted a
pilot testing of the questionnaires to three hotel establishments in Tacurong City which was validated by five expert
validators with an overall rating of 3.905 or Good. After validation, pilot testing was conducted. Cronbach alpha was
used to check the validity of the questionnaire with the following measures: organizational efficacy (0.947), service
climate (0.948), social exchange (0.960) and organization communication satisfaction (0.966). The Cronbach’salpha
consistency coefficient customarily ranges between zero to one. However, there was no lower limit to the coefficient. The
closer the Cronbach’s alpha coefficient to one, the larger the internal constancy of the items inthe
scale(Gliem&Gliem2003).

Moreover, Darren and Mallery (1999) postulated the these rules of thumb in measuring questionnaire’s reliability using
cronbach’s alpha: if the result is greater than or equal to 0.9 it is excellent; greater than or equal to 0.8 is good; greater
than or equal to 0.7 is acceptable; greater than or equal to 0.6 is questionable; greater than or equal to0.5 is poor and
greater than or equal to 0.4 is unacceptable.

A total of 41 retrieved questionnaires were pilot tested. Responses were tallied and determined its validity.
Reproduction of survey questionnaires was facilitated from October to November, 2019. Approved request letters
signed by the adviser and the dean of graduate school were distributed together with the questionnaires to the selected
hotel establishments in region XII specifically in the areas of General Santos City,Koronadal City,Tacurong City
Kidapawan City and in Isulan, Sultan Kudarat. Then a time table was set for the duration of the floating and retrieval of
questionnaires which was from October 15 until November 10, 2019. Gradual administration and retrieval of data,
collation and tabulation of data was conducted wherein data screening was done to eliminate the outliers during the
analysis. And lastly, analysis and interpretation of data, wherein results were analysed and interpreted.

Statistical Tools

The data collected were analysed and evaluated using the following statistical tools:

Mean. This was employed to ascertain the level of organizational efficacy, service climate, social exchange and
organization communication satisfaction of hotel employees.

Pearson Product Moment Correlation. This was utilized to establish the connectivity between organizational efficacy,
service climate, social exchange and organization communication satisfaction.

Multiple Regression. This was employed to reveal the significant predictors of organization communication
satisfaction.

Structural Equation Modelling. This study requires the use of SEM to explore the best fit model. The essence of the test
according to Savalei and Bentler (2010) is to confirm the exclusion of attributes with low relationships with the attributes
of the other latent factors in the final SEM.

III. RESULTS

This chapter presents the data and deconstruction of findings based on the responses of the respondents on the
organization communication satisfaction of hotel employees in Region XII. The discussions were sequenced according to
the following sub-headings: level of organizational efficacy, level of service climate, level of social exchange and level of
organizational communication satisfaction. It is followed by a regression analysis on the influence of organizational
efficacy and organization communication satisfaction, service climate and organization communication satisfaction.
And lastly, the best fit model that predicts the organization communication satisfaction. It can be gathered from the data
that standard deviation is below 1.00. This shows the consistency of responses (Reiners, et al., 2018).

Level of Organizational Efficacy of Hotels

Shown in Table 1 is the level of organizational efficacy of hotels in Region XII. The overall mean score obtained
on the organizational efficacy is 4.28 with a standard deviation of 0.51, described as very high. This means that the
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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

organizational efficacy of hotels is always observed.Specifically, the three indicators got a very high description and the
mean ratings are disclosed as follows: collective capability attained a mean rating of 4.35; sense of mission and future
obtained a mean rating of 4.23; and sense of resilience got a mean rating of 4.25. The overall very high response of hotel
employees means that the domain of organizational efficacy are always observed.

Table 1

Level of Service Climate of Hotel Employees

Depicted in Table 2 is the summary of the level of service climate of hotel employees. The overall mean score is
4.24 with standard deviation of 0.52, described as “very high” which means that service climate is always observed by
the respondents.
The mean ratings of the indicators of service climate are unveiled as follows: customer orientation landed a
mean rating of 4.28 or very high; managerial support acquired a mean rating of 4.27 or very high; and work facilitation
rounded up a mean rating of 4.16 or high.

Level of Social Exchange of Hotel Employees

Presented in Table 3 is the level of social exchange of hotel employees in Region XII. The overall mean rating is
3.54 with a standard deviation 0.65, described as “high” which means that social exchange is oftentimes observed by the
respondents.
The mean score of the indicators of social exchange are conveyed as follows: experiential information earned a
mean of 3.38 or moderate; emotional support garnered a mean rating of 3.82 or high; humor exchanged got a mean of
3,62 or high and exchange outside meetings gained a mean rating of 3.33 or moderate.

Table 3

Level of Organizational Communication Satisfaction of Hotel Employees

Indicated in Table 4 is the level of organizational organization satisfaction of hotel employees in Region XII.
The overall mean score is 4.12 with a standard deviation of 0.62, described as high which means that personality
dimension is oftentimes observed by the respondents.
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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

The mean rating of the indicators of organization communication satisfaction are elaborated as follows:
organization integration and supervisor communication got mean ratings of 4.20 and 4.23 respectively, of which both
were described as very high. Personal feedback, communication climate and media quality attained a high description,
where these indicators garnered a mean ratings of 3.97, 4.10, and 4.09 respectively.

Correlation between Organizational Efficacy and Organization Communication Satisfaction

Table 5.1 displays the data on the results of correlations between organizational efficacy and organization
communication satisfaction.The overall r-value attained by the aforesaid measures is 0.518 with a p-value less than 0.05
is significant yet in moderate level (Evans, 1996), still rejecting the null hypothesis of no significant relationship.

Moreover, it was observed that organizational.integration, supervisor communication,personal feedback,

communicationclimate and media quality as indicators of organization communication satisfaction when correlated to
collectiveCapability sense ofmission and future and sense ofResilience, the overall value are 0.429, 0.471 and 0.496
respectively with p< 0.05 hence, significant.

Correlations between Service Climate and Organization Communication Satisfaction

Table 5.2 exhibits the data on the results of correlations between service climate and organization
communication satisfaction. The overall r-value obtained from the said measures is 0.641 with a p-value of less than 0.05
which is lesser than .05.level ofsignificance. The result is a very strong.Significant level (Evans, 1996), hence the null
hypothesis of no significant relationship is rejected.

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

Furthermore, it was observed that customer orientation, managerial support, and work facilitation as indicators
of service climate when correlated to organization integration, the overall r-value is 0.560 with p<0.05 hence, significant.
When the indicators of service climate are correlated to supervisor communication, the overall r-value is 0.550 with
p<0.05 hence, significant. When indicators of service climate are correlated to personal feedback, the overall r-value is
0.534 with p<0.05, hence significant.
Finally, as the indicators of service climate are correlated to communication climate and media quality, they
garnered an overall r-value of 0.589 and 0.500 respectively with p<0.05 hence, significant. All the probability values
indicated significant correlations.

Correlations between Social Exchange and Organization Communication

Satisfaction

Table 5.3 shows the data on the results of correlations between social exchange and organization
communication satisfaction. The overall r-value is 0.455 with p<0.05 which is significant rejecting the null hypothesis of
no significant relationship.
Further, it was observed that organizationintegration, supervisor communicationpersonal
feedbackcommunication climateand media quality as indicators of organization communication satisfaction when
correlated to experiential information, the overall r-value is 0.268 with p<0.5 hence, significant. Likewise, when
indicators of organization communication satisfaction are correlated to emotional support, the overall r-value is 0.466
with p<0.05 hence, significant. Moreover, when indicators of organization communication satisfaction were correlated to
humor exchanged, the overall r-value is 0.299 with p<0.05 hence, significant. Lastly, when indicators of organization
communication satisfaction were correlated to exchange outside meetings, the overall r-value is 0.380 with p<0.05 hence,
significant. The probability values showed significant correlations.

Table 5.3

Significance on the Relationship between Social Exchange and Organization Communication

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

Multiple Regression Analysis of the Influence of Organizational Efficacy,

Service Climate and Social Exchange on Organization Communication Satisfaction
Presented in Table 6 is the analysis of organization communication satisfaction as regressed on organizational
efficacy, service climate and social exchange. The regression analysis shows how changes in the organizational
efficacy,service climate and social exchange are associated with changes in the organization communication satisfaction.
Results of the analysis revealed that around 47.6 or 48% of the variation on the organization communication
satisfaction is attributed to service climate and social exchange. It can be noted that for every unit of service climate,
while holding social exchange constant, is increased by 0.51. Similarly, for every unit of social exchange, as service
climate remains as it is, organizational communication satisfaction is increased by 0.26.
However, organizational efficacy may like have no contribution on the organization communication
satisfaction. This is evident on its t-value of 1.208 with p-valueof 0.228which isgreater than 0.05.
The result shows further that service climate and social exchange have significant influence with organization
communication satisfaction, hence the null hypothesis of no significant influence is rejected.
It can be gleaned that results revealed a good model as indicated by F= 114.75 witha p-valueof000.

Table 6

*p<.05

Best Fit Model of Organization Communication Satisfaction

This section highlights the analysis on the interrelationships among organizational efficacy, service climate and
social exchange to the organization communication satisfaction of hotel employees. There are five alternative models
tested to achieve the best fit model of organization communication satisfaction. Each model developed a structure
which might be broken down into two sub-models: measurement model and structural model.The measurement model
signifies the measure of loads on each factor to their latent constructs while the structural model describes relations
among the latent variables. Moreover, the assessment of fit was used as baseline for accepting and rejecting the model.
As a rule, the researcher established the relationship of the causality relationship of the latent variable toward the
different latent variables.
Furthermore, it constitutes the relationship between the endogenous and exogenous variables. The moment
that structured model exhibits with suitable fit, it underscores that there is consistency of the empirical relationships
among variables inferred by the model.
There were five hypothesized models formulated and tested in this study. Screening of variables was critically
observed to give premium on the normality of the data generated models presented in the study. As shown in the
conceptualized models of this study, the direct effects are represented by arrows from a predictor variable illustrated at
the right side to the left side where the dependent variables are, without passing through another variable.
The first generated structural model exhibited in the appended figures displayed the direct relationship of the
exogenous variables: organizational efficacy, service climate and social exchange and its causal relationship on the

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

endogenous variable which is the organization communication satisfaction. All indices did not reach the acceptable
ranges as revealed in the appended tables, hence, a poor fit.
The second generated structural model exhibited in the appended figures showed the interrelationship of the
exogenous variables: organizational efficacy, service climate and social exchange and its causal relationship on
organization communication satisfaction. It could be viewed in the appended tables the direct effects of predictor
variables to the dependent variables which is the organization communication satisfaction of hotel employees. The
model was also found to be a poor fit since all its indices did not reach the acceptable ranges.
The third generated structural model exhibited in appended figures displayed a direct causal interrelationship
of exogenous variables service climate and social exchange on organization communication satisfaction. It could be
viewed in the appended tables the direct effects of predictor variables to the dependent variable which is the
organization communication satisfaction of hotel employees. Still all its indices failed to pass the other criterion, thus,
model 3 was a poor fit.
The fourth generated structural model exhibited in the appended figures displayed the direct causal
interrelationship of the exogenous variables organizational efficacy and social exchange on organization communication
satisfaction.
It could be viewed in the appended tables the direct effects of predictor variables to the dependent variable
which is the organization communication satisfaction of hotel employees. Organizational efficacy obtained the highest
total effect of .408 on organization communication satisfaction and followed by the social exchange with .362 effect on
organization communication satisfaction. Displayed in the appended tablesare the examination of Model 4 using
goodness of fit indices. The model was still found not fitting based on the criterion.
Lastly, the generated structural model 5 in standardized solution is a modified version of Model 2 wherein
some indicators with low values were removed. Model 5 was found to have indices that consistently indicate a very
good fit to the data as all the indices presented fall within each criterion. Thus, there was no need to find another model
for testing because it was already found to be the best fit among all the tested model. Therefore, the null hypothesis of
no best fit model was rejected. It could be stated that there is indeed a best fit model which the organization predicts
communication satisfaction of hotel employees in Region XII.
The model clearly illustrates the importance of organizational efficacy as a predictor of service climate, social
exchange and organization communication satisfaction of hotel employees. However, it could be gleaned from the
model that out of three variables, only organizational efficacy and social exchange have the direct causal relationships
towards organization communication satisfaction.
Organizational efficacy has three (3) indicators, however, only sense of resilience remained as significant
predictor of all the variables namely: service climate, social exchange and organization communication satisfaction. For
service climate, it is not a good predictor of organization communication of hotel employees but instead, it only retained
two out of its three indicators were found to affect social exchange, namely: managerial support and customer
orientation.
Social exchange retained its four indicators specifically experiential information, emotional support, humor
exchanged and exchange outside meetings as good predictors of organization communication satisfaction. On the part
of organization communication satisfaction, it retained only three out of its five indicators namely: organization
integration, supervisory communication, and media quality.
Thus, the findings suggest that organization communication satisfaction of hotel employees was best anchored
on organizational efficacy which is measured in terms of sense of resilience; and social exchange which is measured in
terms of experiential information, emotional support, humor exchanged and exchange outside meetings.
The examination of Model 5 as displayed using goodness of fit indices: Chi-Square divided by the degrees of
freedom (MIN/DF) is 1.395; Normed Fit Index (NFI) is .977; Tucker-Lewis Index(TLI) is .988; Comparative Fit
Index(CFI) is .993; Goodness of Fit Index (GFI) is .982; Root Means.Square of Error Approximation (RMSEA)is .032; and
P OF Close Fit (Pclose) is .885. The result of the goodness of fit of the model 5 is highly acceptable since all indices had
met the set criterion against the obtained model fit value. These indices satisfied the requirements of the goodness of fit
measures. Moreover, this is an indicator that generated model 5 is a very good fit model.
In identifying the best fit model, all indices included must fall within the acceptable ranges. Chi-
square/degrees of freedom value should be less than 5 with its corresponding p-value greaterthan0.05. The root mean
square error approximation value must be less than 0.05 and its corresponding Pclose value must be greater than 0.05.
The other indices such as normed fit index, Tucker-Lewis index, comparative fit index and the goodness of fit index
must all be greater than 0.95. The five structural models generated in the study were capsulized in Table 7.

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

Table 7

Direct and Indirect Effects of the Independent

Variables on Organization Communication
Satisfaction of the Best Fit Model

Figure 7.The relationships among

OrganizationalEfficacy, Service Climate and Social
Table 8
Exchange and Their Causal Relationshiptowards
Goodness of Fit Measures of Structural the Best Fit Model
Organization Communication Satisfaction.
Legend:

IV. DISCUSSION
Included in this chapter is the discussion of the findings based on the statistical results concerning
organizational efficacy, service climate, social exchange and organization communication satisfaction of hotel
employees in SOCSKSARGEN region. Discourse on the significance of the relationship and influence of exogenous
variables on organization communication satisfaction as well as construct of best fit model on organization
communication are comprehensively presented with supporting principles, concepts, ideas and theories which helped
to solidify the conclusion and recommendation of the study.

Organizational Efficacy of Hotels

The level of hotels’ organizational efficacy is very high. The very high level of organizational efficacy is
attributed to all indicators, collective capability, sense of mission and sense of resilience. This means that the
organizational efficacy of hotels in region XII is always observed.
The very high level of organizational efficacy of hotels in region XII in terms of collective capability is the result
of the very high ratings given to the specific items under organizational efficacy by the respondents and mostly got a

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mean rating of 4.30 and above .People in this organization can take on any challenge; In this organization we can coordinate our
efforts to complete difficult projects; People in this organization can work together to accomplish a goal.
The very high level of organizational efficacy of hotels in Region XII in terms of sense of mission was the result
of very highly rated items as follows: People here have a sense of purpose to accomplish something; Were very certain about what
we will accomplish together as a company; and This company has a strong vision. The sense of resilience as an indicator of
organizational efficacy also got a very high level. This means that people in the organization are of full strength and
optimism.
The very high level of organizational efficacy of hotels in region XII is an articulation of the pronouncement of
Bohn (2010) who stated that organizational efficacy is a combined judgment of an organization’s membersabout their
sense of collective skills, sense of mission and sense of resilience. He further stated that organizational efficacy is a
generative capacity within an organization to cope effectively with the needs, hurdles, problems and chances it meets in
the corporate world. This explains why organizational efficacy obtained a very high rating from the respondents.

Service Climate of Hotels

The level of hotel employees service climate is very high. The very high level of service climate is attributed by
customer orientation and managerial support which obtained the highest mean of 4.28 and 4.27 respectively. This
means that the service climate of hotel employees in Region XII is always observed.
All items of customer orientation under service climate got a very high level of ratings. The very high level of
rating regarded by hotel employees is in consonance with the study of He (2011) where he defined two features of
customerorientation which may have a direct influence on customer satisfaction: This is also in congruent to the study
of Shainesh and Sharma (2003), that customer orientation is the essential component of the service climate that defines
the course and instructions of the company, and the two "wheels" of the carriage, to realize quality service, are
managerial support and work facilitation.
The very high level of service climate of hotel employees in Region XII is also primarily due to the managerial
support received by them from their supervisors or managers. Three out of four items got a very high level, which
means that hotel employees in Region XII always observed the support from their managers or supervisors.
The very high level of service climate in terms of managerial support to hotel employees is confirmed by Liao
and Chuang's (2007) who reported that leaders who demonstrated dedication to service quality would demonstrate to
their subordinates the value of quality service delivery are highly committed toward improving customer service, they
would do the same with their colleagues. Work facilitation is another indicator which attributed to a high level of service
climate by hotel employees in Region XII.
All these findings confirms with the researches of Salanova et al (2005); and Schneider and White(2004) which
suggested that service climate can be shaped before it can be established.

Social Exchange of Hotel Employees

The level of hotel employees social exchange if high. Such result is attributed by two out of four indicators:
Emotional Support and Humor Exchanged. This means that the social exchange of hotel employees in region XII is
oftentimes observed. These activities are an articulation of the pronouncements ofSzabo, Ainsworth, &Danks (2005) as
reductions in anxiety, and better moods of hopefulness ( Vilaythong, Arnau, Rosen, and Mascaro 2003).

Organization Communication Satisfaction of Hotel Employees

The level of organization communication satisfaction of hotel employees in region XII is high. Two out of five
indicators got a very high rating such as: organization integration and supervisor communication. This means that
organization communication of hotel employees in region XII is highly satisfied.
The remaining three indicators which obtained a high level of rating are: personal feedback, communication
climate and media quality.
These actions therefore are likely to increase the organization communication satisfaction of hotel employees in
region XII since it is congruent to the views of Mount and Back’s(1999) research studies related to the piloted hotel
workers.
In addition, Akkirmanand Harris(2005) examined the degree of organizational communicationsatisfaction of
modern employees and traditional office workers and reported how modern workers are more comfortable with their
organizational communication, though they face more difficulties when using technology to interact efficiently with
other employees.The very high result of organization communication satisfaction in terms of supervisory
communication confirmed with the study of Varona (2002) that communication with supervisors and higher level
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managers, the main source of satisfaction were the willingness of supervisor to trust, listen and to accept innovative
ideas

Significance on the Relationship between

Organizational Efficacy and Organization Communication Satisfaction

There is a significant positive relationship between organization communication satisfaction and organizational
efficacy of hotel employees in Region XII. The result is aligned to the findings of Bohn (2010), based form the theory of
Bandura.
Social interactions, experiences, and external influences generate organizational beliefs about capability and
desired outcomes for a particular activity. A sense of mission operates through the organization’s culture providing
direction and incentive toward a particular activity.

Significance on the Relationship between Service

Climate with Organization Communication Satisfaction

There is also a significant positive correlation of hotel employees' service climate and organization
communication satisfaction in Region XII. The findings is congruent to the presumption of Drach-Zahavy and Somech
(2013); and Sharma et al 2016), which stated that interactions and mutual assistance amongst service workers is essential
for quality of service since The service mechanism is a network of processes focused on interconnections and sub-
process interdependence. The significant relationship between service climate and organization communication
satisfaction is also reinforced by the results in the study of Liao and Chuang (2004), that customer feedback is often
asked for by hotels as a way of customer orientation to have some innovations on organizational performance.
The study of Schneider and White (2004), elaborated that work facilitation as indicator of service climate are
resources that are considered as the key to achieving a sense about how well workers are assisted in delivering quality
service. Likewise, the study of Steinke (2008) also tested the impact of physical design on service climate and customer
outcomes in a context for health treatment context..
Furthermore, a significant relationship between service climate and organization communication is
underscored by the study centered on a major University in Australia (Joiner and Bakalis 2006. It is suggested that
organizational support may come from supervisors and subordinates, position clarification and resource access that
includes similar concept in this.

Significance on the Relationship between Social

Exchange and Organization Communication Satisfaction

There is a result of a significant relationship between social exchange and organization communication
satisfaction of hotel employees in Region XII. It was observed that organizationintegration, supervisorcommunication,
personalfeedback, communicationclimate and mediaquality as indicators in organization communication satisfaction
when correlated to experiential information, emotional support, humor exchanged, and exchange outside meetings, as
indicators of social exchange showed significant correlations.
Finally, the positive correlation between social exchange and organization communication satisfaction is
affirmed in the study of Bohn, (2010), which indicated that communication satisfaction denotes to satisfaction or
dissatisfaction which evolved from dealings within a workgroup. This is substantiated by Conrad (1985), that
workgroup is the mains source for social dealings for a lot of people, the constant communication will offer them the
means to represent their sentiments and emotions accomplishing their societal needs.

Multiple Regression Analysis of the Influence of

Organizational Efficacy, Service Climate and Social Exchange on Organization Communication Satisfaction

One of the most important purpose of this study is the regression analysis determining the influence of
organizational efficacy, service climate and social exchange on organization communication satisfaction. It was revealed
that organizational efficacy has no significant influence on organization communication satisfaction. However, both
service climate and social climate influence organization communication satisfaction.
In the study conducted by Bowen and Schneider (2014) it reveals that service climate focuses on processes
relevant to the provision of outstanding services and the degree to which organizational quality of service is

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

highlighted. This is also reinforced by the results in the study of Liao and Chuang (2004), that feedback from customers
is usually asked through cards by hotels as means of customer orientation, for the improvement of hotel performance.
The study of Johnson et al (2015), affirmed that social exchange and organization communication which
indicated that communication satisfaction denotes about satisfaction or dissatisfaction coming from social dealings
being experienced by employees within a work group. This is substantiated byFluhmann et al (2012) that interact among
employees and managers may lead to a range of benefits which includes enhanced knowledge.
Finally, on Pi, et Al (2008), analysis, Instant Messaging (IM) as the most common electronic media messaging
influenced the organizational usage of IM and exploring the relationship between IM and the satisfaction of
organizational communication. IM form part of a social exchange and service climate. Results have multiple
consequences technology tools positively affect the organized communications success and informal communication
satisfaction of an organization.

Best Fit Model for Organization Communication

Satisfaction

The analysis on the interrelationships among organizational efficacy, service climate and social exchange to the
organization communication satisfaction of hotel employees in region XII consisted of five models. The models were
tested to achieve the best fit model of organization communication satisfaction. Moreover, the assessment of fit was
used as baseline for accepting and rejecting the model.
Based on the findings, the model evidently illuminates the essentials of organizational efficacy and social
exchange as predictors of organization communication satisfaction. Organizational efficacy and social exchange are
important components of organization communication satisfaction of hotel employees to appropriately manage the
hotel resources and business as a whole.
Hypothesized model 5 satisfied the criteria for the best fit model. The model apparently showed the
importance that one out of three factors of organizational efficacy have direct association with two out of three factors of
service climate, complete four factors of socials exchange and three out of five factors of organization communication
satisfaction. Service climate only showed a direct association with social exchange and social exchange only have a
direct association to organization communication satisfaction.
As shown in the appended level or service climate which resulted to a very high rating, it did not guarantee its
influence to organization communication satisfaction as the model was generated, instead, it has an indirect effect.
The best fit model on organization communication satisfaction suggests that hotel employees is best anchored
on organizational efficacy which was measured in terms of sense of resilience; service climate which was measured in
terms of managerial support and customer orientation; and social exchange which was measured in terms of
experiential information, emotional support, humor exchanged and exchanges outside meetings.
Parallel to this, the findings of the study are claimed that resilience was defined as the capacity to rebound or
swing back, or the system of reacting to significant stressors like traumatic or disaster, intimate relationship difficulties,
serious health issues, or economic troubles (Davidson & Zhang, 2006; Smith, Tooley, Christopher, & Key, (2010);
Davidson & Zhang, (2006). Several scholars had described resilience as the recognition of motivating forces inside
individual or group which could be linked to favourable results following experiences in challenging life such as
development and encouragement called post traumatic development.
The generated best fit model on organization communication satisfaction of hotel employees also conforms to
the findings of Iyer and Israel (2012) that organization communication satisfaction have calculated consequences for
organizations with greater focus on rising relationship quality by considering various human resource strategies in
industries at either the global and local scales.

Conclusion

The use of structural equation model strengthened the rigor of the study because the analysis goes through the
steps of model specification, model estimation and model evaluation. Results revealed that the level of organizational
efficacy and service climate are very high indicating that these variables are always observed by hotel employees.

There are significant relationships of the following variables: organizational efficacy, service climate and social
exchange with organization communication satisfaction congruent with literature as underscored in readings under
significance relationships between measures. Of the five models, only model 5 has the indices that consistently
indicated an outstanding fit to the data, therefore, it is identified as the best structural model.

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Structural Equation Model on Organization Communication Satisfaction of Hotel Employees in Region XII

As laid down in the Social Exchange Theory (SET), proactive behavior based on workers by the service
organizations ' members (e.g. service members exceeding personality-interest, love and consideration for clients) would
lead to the development of a social atmosphere wherein workers understand and perceive their organizational service
climate in a favourable and productive way.

Recommendation

Based on the results of the study, the researcher proposes these recommendations:
The high level rating of social exchange and organization communication satisfaction of hotel employees in
regions XII suggest that there is still room for improvement by raising them to a very high level. The human resource
department should instigate activities and programs that will improve team works in making wise decision in the
organization which will build strong relationships among employees inside and outside the organization.
Improve departmental communications throughout the hotel organizations to foster camaraderie and
collaboration among the personnel. Department managers or supervisors have the direct contact with the employees
under them, hence, they could facilitate healthy communication environment. This could vouch somehow theemployees
morale and will motivate them to be more productive.
As a best fit model, organizational efficacy has a strong direct causal effect with service climate, social exchange
and organization communication satisfaction, hence, it is recommended that hotel industries will activate continuous
programs pertaining to organizational efficacy to sustain strong foundation for the hotel employees to be mission-
oriented, technically skilled individuals and resilient to the challenges encountered in the organization. Nurture strong
relationship among hotel employees within and outside the organization to foster teamwork and team building.

ACKNOWLEDGMENT

To God be the glory. His blessings and support means so much in the completion of this academic journey. The
researcher wishes to extend her gratitude to the following:

Dr. Myrna S. Viado, her adviser for her patience, guidance and for giving her the useful and scholarly
suggestions on this dissertation.

Dr. Eugenio S. Guhao, Jr., Dr. Vicente Salvador E. Montano, Dr.Gaudencio G. Abellanosa, Dr.Stilo Floyd
Schneider, Dr. Francis Evan L. Manayan and Dr. Helena Lovitos, the members of the panel, for their valuable feedbacks.

Dr.Rinante L. Genuba, her statistician and to family and friends who extended their assistance.

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