CHAPTER 1

INTRODUCTION
1.1 Introduction

The purpose of this study is to identify the impact of personality traits on the ethical

behaviour among employees in The Ritz-Carlton Hotel Kuala Lumpur. Furthermore, this

study can help the international hotel franchise in Malaysia to identify the organizations’

ethical behavior that can seriously lead to misconduct of job at the workplace or vice versa.

In this chapter, some of the following was discussed which is background of study,

problem statement, gaps ofknowledge and the research objective. In this chapter also

includes research questions in guiding this study, justification of study,scope of study,

significance of study and organization of thesis. Wrongdoing inside an organization is by

and large observed as a scrape, best case scenario, fiasco even under the least favorable

conditions (John Hopkins University, 2016). This significant event that occurs in an

organization played an important role and it creates the awareness to the public, business

and many people on the issues of ethical behavior. This thing later provide and creates

opportunity to the researchers to investigate and examine what is the significant

relationship of personality traits in an employee that can affect their ethical behavior in the

workplace. Employees tend to be different in terms of their personality traits so it is not an

easy task to explore them.

1.2 Background of Study

In the globalization today, all managers, owners, employees are supposed to portray good

ethical behavior in the workplace in order for the organization to run smoothly the way it

should be no matter inside or outside the organization. Good ethical behavior is becoming a

great concern in maintaining the development of a business. Consequently, unethical

behavior in a workplace can be so apprehend because it can create a possibility of conflicts

may be occur between the employees or managers. Cheating, trickiness, hierarchical

offense, and numerous different types of ethical behaviour are among the best difficulties in

the present society (Francesca Gino, 2015). Sexual harassment and bullying, time misuse

and illegal acts are the common types of unethical behavior (Chris Joseph, 2018).

In this study, focus on the personality traits that can give impact to the ethical behavior in

the workplace. Personality traits reflect people’s characteristic patterns of thoughts, feelings

and behaviors (Edward Diener, Richard E.Lucas,2006). A person's conduct towards others,

disposition, qualities, mentality make the character. Character is the pretty much steady and

suffering organization of an individual's character, temperament, intellect and physique

which determines his or her unique adjustment to the environment (Eysenck, 1970).

The importance of ethical behavior to an organization has never been more apparent, and

in recent years researchers have generated a great deal of knowledge about the management

of individual ethical behavior in organizations (Linda et. al 2006). Business ethics

generally deals with evaluating whether practices exercised by employees, leaders and

organizations as a whole can be considered morally acceptable (Ferrell, Fraedrich, &

Ferrell, 2008). In modern time, this ethical behavior has been looked as an important aspect

of the business success. According to Gresham, Ferrel and Mclaves N. (2013), both

organizational and individual factors are drivers of ethical behavior.

1.3. Problem Statement

Progressively, organisations are realising the importance of ethics in the organizations

(Ozbag, 2016). Influential moral directions can become key components for the success of

any organization if they apply the appropriate ethical actions in the workplace. Certainly,

portraying ethical actions can give many benefits to the organizations both internal and

external. It can contribute to a long term success either to the management and also can

maximize the profits to the organizations. Based on News Straits Times 2018, the main

issue of ethics in the workplace in Malaysia is a huge cultural problem with power

dynamics. The article mentioned that our country scored the highest on Hofstede’s Power

Dynamic Index at 100 which means, the employees are very submissive to their top

management and they would not dare to say no to them even it is wrong. In a study directed

by one of the big four accounting firms - KPMG Malaysia, which included 100 recorded

organizations on Bursa Malaysia, 64% of respondents accepted that without offering any

bribes, no business can occur in Malaysia. In addition to KPMG’s report, Ernst & Young

(E&Y) in its Asia-Pacific Fraud Survey Report Series 2013 released in September last year,

found that Malaysia and China had been ranked among the nations with high level of

corruption.

Barrick and Mount, 2011 believed that personality is an important influence on the ethical

behaviour of an individual in an organization and workplace. Essentially, personality exerts

its effects on human behaviour by shaping the manner in which a person experiences and

perceives the world (Goodstein & Lanyon, 1999). Thus, this research study will identify

and examine which personality traits are strongly affected the ethical and unethical

behaviour of the employees.

1.4. Gaps of Knowledge

1. Tested Research

Only a handful of personality traits have been tested as antecedents of ethical behavior of

employees in private sector specifically for international franchise hotel in Malaysia and

almost all of these personality traits only deal with perception of self-worth in individuals

(e.g. self-esteem, narcissism, and core self-evaluation). Thereby, a thorough investigation

between variation of personality traits and ethical behavior of employees in hospitality

industry especially at 5 Star franchise hotels in Malaysia is lacking. To fill this void, this

study assesses the association between the big-five personality traits and ethical behavior of

employees in The Ritz-Carlton Hotel Kuala Lumpur as the indicator international franchise

5 Star hotel in Malaysia.

2. Usage of Big-five Personality Traits

There are important reasons for choosing the Big-Five personality traits as antecedents of

ethical behavior of employees. Five Factor Model (FFM) or Big-Five personality traits is a

widely accepted instrument which describes personality variations and was proven to be

applicable to over fifty societies across six continents. Additionally, it has been recognized

by many psychologists as the best representation of personality structures across different

cultures (Digman, 1990; Harari et al.,2014; Wiggins & Trapnell, 1997). There are many

studies such as Yamagata et al. (2006), Bouchard Jr. and Loehlin (2001), Gurven et al.

(2013), , and McCrae and Costa (1997) that suggested that the Big-Five personality traits is

rooted in human beings’ science and qualities, and hence, it is all inclusive.
3. Importance of Drawing Sample from Hospitality Industry

The principle test of this exploration was drawn from the hospitality industry specifically

for international 5 star franchise hotels in Kuala Lumpur, Malaysia. Headway and

improvement of both cordiality and the travel industry assume basic jobs in national

economy solidness, provincial advancement upgrading, joblessness decrease, pay

increment and higher expectations for everyday comforts, which unquestionably makes

them the most significant ventures today. Why does the research focus on ethical behavior

of hotel-employees? Despite the way that having ethical behavior of employees is gainful

to any organization, it is increasingly essential for organizations inside the hospitality

industry to have ethical behavior for two fundamental reasons. Initially is the way that

customers' satisfaction is affected by the significant level of collaboration among workers

and customers, and likewise high level of inclusion of workers in hotel industry (Bitner et

al., 1990; Bowen and Lawler, 1992). Consequently, by being responsive and adaptable in

tending to customers' need, ethical workers can go far in profiting organizations (Melhem,

2004). Furthermore, explore has demonstrated that when an issue emerged, the best spot for

taking care of the issue is the closest spot to the issue, subsequently, by being nearest to the

issue, ethical bleeding edge workers are organizations' best choice for taking care of

customers' concern (Hart et al., 1990; Koc, 2013).

1.5. Main objective

Research objective assume a significant job as it encourages us to concentrate on the

investigation, keep away from the pointless information assortment and to compose the

examination in unmistakably characterized parts or expression. In light of the research

question, research objective is made so that by accomplishing the objective I figure out

how to discover the response for the inquiry. The following are the research objectives:

The main objective of this research is to identify the impact of personality traits towards the

ethical behavior of employees in The Ritz-Carlton Hotel Kuala Lumpur.

1.6. Specific objectives

1. To identify the dimensions of personality traits and the ethical behavior of employees in

The Ritz-Carlton Hotel Kuala Lumpur.

2. To determine the importance of personality traits and the ethical behavior of employees

in The Ritz-Carlton Hotel Kuala Lumpur.

3. To examine the relationship between personality traits and the ethical behavior of

employees in The Ritz-Carlton Hotel Kuala Lumpur.

1.7. Research questions

In order to understand this topic, it is important to identify the question need to be

answered later on. This question will be the guideline to determine the objective. The

research question listed as below:

1. What is the relationship between openess to experience of personality traits against the

ethical behavior of employees in The Ritz-Carlton Hotel Kuala Lumpur?

2. What is the relationship between conscientiousness of personality traits against the

ethical behavior of employees in The Ritz-Carlton Hotel Kuala Lumpur?

3 What is the relationship between extraversion of personality traits against the ethical

behavior of employees in The Ritz-Carlton Hotel Kuala Lumpur?

4. What is the relationship between agreeable of personality traits against the ethical

behavior of employees in The Ritz-Carlton Hotel Kuala Lumpur?

5. What is the relationship between neoroticism of personality traits against the ethical

behavior of employees in The Ritz-Carlton Hotel Kuala Lumpur?

1.8. Justifications of study

The purpose of this research is to examine the impact of personality traits towards the

ethical behavior of employees in the hospitality industry specifically at The Ritz-Carlton

Hotel Kuala Lumpur.. While the government sector of Malaysia, such as KWSP (Nina

Maisarah, 2019have been distinguished and considered in past research, there is an absence

of information about the individual perspectives of workers in personality traits with

respect to the ethical behavior of employees in the work environment. The wide subject of

working environment ethical behavior has gotten consideration, including from the

government, yet expected personality traits are not the focal point of that consideration.

Instead, in addition to KPMG’s report as one of the big four accounting firm in Malaysia,

Ernst & Young (E&Y) in its Asia-Pacific Fraud Survey Report Series 2013 released in

September 2018, found that Malaysia and China had been ranked as one of the most

corrupt nations. More alarming is the fact that out of those that took part in the survey, a

whopping 90% opined that fraud is an inevitable cost of doing business, while 71% of them

said the same about bribery and corruption. This show lack of integrity among private

sector employees that make the investor to turned away for making a foreign direct

investment in Malaysia if further research not had been done in term of personality traits

and ethical behavior of employees in private sector.

As society faces increased threats regarding unethical behavior at workplace, the types of

organizations that are now at risk are changing. The results of this research may provide

insight into top management, employees and investor perceptions of personal traits towards

the ethical behavior of employees at the workplace.

As per Jain, Saeed, Arnaout, and Kortum (2012) significant regions of worry in the

working environment incorporate pressure, savagery, and harassing. “At the organizational

level, work stress can lead to a deteriorated work climate, and can have an impact on

product and service quality as well as the image of the organization” (Jain et al., 2012, p.

326). The presentation to worry in the workplace could prompt negative impacts in people's

psychological and physical wellbeing, just as organizations' general profitability and

viability. So, improvise of ethical behavior among employees is necessary.

The information gathered through this undertaking can possibly be utilized to bring issues

to light to top management, employees and investor as well for concerns in ethical behavior

of employees, also, to give data to organization to use with an end goal to make or improve

recruiting process that may give organizations data that conceivably can be utilized to

address the personality traits of employees for ethical behavior at the workplace.
1.9. Significance of study

1. Impact of personality traits towards ethical behaviour of employees

The research is done to show the impact of personality traits towards ethical behaviour of

employees and as mentioned by Nasir and Bashir, 2012, diverging behaviours have genuine

unfavorable consequences for the general efficiency, effectiveness and productivity of an

organization. Productivity of a company is positively related to the productivity of its

employees too. That is why ethical behaviour is seen as an important aspect to be focus in

order to reach the company’s goals and objectives.

2. Help and provide information to the business organization whether the personality

traits positively influences the ethical behaviour

Penney et al., 2011, additionally contended that personality is a significant determinant of

individual conduct in the work environment. How a person treat others whether it is in a

nice way or not shows the personality traits of that particular person. This research is

important to the business world and organization since the findings will be a help and can

provide information to the business organization whether the personality traits positively

influences the ethical behaviour. Thus, will help the international franchise hotel in

Malaysia to improve their overall competitiveness and efficiency.

3. Identifying personality traits on how employees achieve certain level of ethical

Thinking about the undeniable connection between personality attributes and ethical

behaviour of employees, and also given the fact that ethical behaviour of employees is a

mental experience (Spreitzer, 1995), recognizing personality traits that encourage the

inclination of ethical behaviour prrovides better understanding on how employees achieve

certain level of ethical.

4. Enables Human Resource (HR) professionals to identify and select more ethical

prospects employees

Other than the commitment to the theory, distinguishing personality traits-ethical conduct

related has a huge down to earth suggestion too. Since, employees high in ethical conduct

related personality quality are viewed as ethical characteristically (Spreitzer, 2007); thusly,

recognizing these personality traits just empowers Human Resource (HR) experts to

distinguish and choose progressively ethical possibilities employees. By choosing all the

more decidedly ethical people, organizations can ensure that they have increasingly

engaged employees in the future.

1.10. Scope of Study

This research examines the impact of personality traits towards the ethical behavior of

employees. The personality traits of independent variable (IV) in this research are

Openness to Experience, Conscientiousness, Extroversion, Agreeable and Neuroticism.

This theory of traits is in view of on the relationship between words however not on

neuropsychological trials. Lewis Goldberg may be the most prominent researcher in the

field of personality psychology. These “fundamental factors” of personality is divided into

five primary factors, similar to the five factors often represented as OCEAN. The

respondents are selected in order to get valid and correct information for this research

regarding the ethical behaviour in The Ritz-Carlton Hotel Kuala Lumpur which contents

the scope of study. Some set of questionnaires will be distributed to the employees in The

Ritz-Carlton Hotel Kuala Lumpur.

1.11. Operational Definitions

1. Ethical behaviour

Ethical behavior characterized by honesty, fairness and equity in interpersonal, professional

and academic relationships and in research and scholarly activities. Ethical behaviour

respects the dignity, diversity and rights of individuals and groups of people. There are lots

of theoretical and empirical studies which explain the factors and variables impacting the

ethical behaviour of individual in the organization and hence their ethical decision making,

ethical behaviour is evidenced since human civilization had been evolved (Geeta, Pooja,

PN, 2016).

2. Personality traits

Personality traits reflect people’s characteristic patterns of thoughts, feelings, and

behaviors. Thus, trait psychology rests on the idea that people differ from one another in

terms of where they stand on a set of basic trait dimensions that persist over time and

across situations (Edward Diener & Richard E. Lucas, 2018). Traits are stable over time.

Most people would accept that an individual's behaviour naturally varies somewhat from

occasion to occasion, but would maintain also that there is a core of consistency which

defines the individual's ‘true nature’: the unchangeable spots of the leopard (Matthews and

Whiteman, 2003).

3. Openness to Experience

Openness to experience is the broadest personality domain of the Big Five Personality

Traits, including a mix of traits relating to intellectual curiosity, intellectual interests,

perceived intelligence, imagination, creativity, artistic and aesthetic interests, emotional

and fantasy richness, and unconventionality (Scott Barry Kaufman,2013). A person who is

high in openness to experience is creative, flexible, curious and adventurous. It indicates a

high level of intellectual and emotional development in a person. Hence, it would seem that

openness be considered as a critical characteristic in professionals (Mohan and R.Mulla,

2013).

4. Conscientiousness

Conscientiousness is a personality construct that is a core determinant of health, positive

aging, and human capital. A large body of work has contributed to our understanding of

this important aspect of personality, but there are multiple conceptual and methodological

issues that complicate our understanding of conscientiousness (Brent et.al 2012). Regarding

to the Roberts,Lejuez, Krueger, Richards, & Hill, 2014 it is also a collection of constructs

describing individual differences in the propensity to be self-controlled, responsible to

others, hardworking, orderly, and rule-abiding.

5. Extroversion

People who are high in extroversion tend to seek out social stimulation and opportunities to

engage with others (Kendra Cherry, 2018). These individuals are often described as being

full of life, energy and positivity. According to researchers, extroversion is associated with

leadership behaviour. The between-persons extraversion–positive affect relationship means

that more extraverted individuals are happier than are more introverted individuals, on

average (Fleeson, Malanos, Achille, 2002).

6. Agreeableness

A person who has strong leanings toward being agreeable is very people-oriented. He or

she will have excellent social skills, enjoy group interactions, shows affection easily, and

finds it easy to collaborate with others (Rebecca Fraser, 2017). Agreeable people tend to do

well with others and easy to build social relationship which likely it is an important aspect
in the business world. Such skills are generally important in the field such as human

resource, event management and public relations. That is why the agreeable trait seems to

be helpful in order to make us blend in quite well in any organization you are in.

7. Neuroticism

Neuroticism describes the personalities with depress, low confidence, and have normally

found with negative thoughts, because of such attitude some of the personalities remain fail

to perform positively at their workplace to achieve the desired career as well organizational

goals. Regarding to Adam Felman, 2018, people with neuroticism tend to have more

depressed moods and suffer from feelings of guilt, envy, anger and anxiety more frequently

and more severely than other individuals.

1.12. Organization of Thesis

The thesis is presented in five chapters.

Chapter 1 gives a brief review of personality traits and ethical behavior of employees

conceptualization and its operational definition in order to create a foundation for the

background of the research. The first chapter continues with identifying the gap and focus

of the research and its theoretical and practical contributions, and finally, it explains the

research questions and objectives.

Chapter 2 gives an extensive review of literature on ethical behavior and personality traits

of employees including conceptualization and outcomes of employee’s ethical behavior in

individual analysis. It also comprehensively reviews the studies which tested individuals’

characteristics as antecedents of ethical behavior of employees as it is related to the gap

which is filled by this research. Chapter 2 also explains the history and development of the

Big-Five personality traits. After elaborating each trait and its established outcomes,

Chapter 2 continues to discuss the direct theoretical links between the Big-Five personality

traits and ethical behavior of employees in order to develop the research hypotheses.

Chapter 3 provides information about researcher’s epistemological positioning along with

the methods by which research questions are answered. The epistemology section discusses

the appropriateness of qualitative methods for answering the research questions. In the

following section, Chapter 3 goes through the process of finalizing the measurement

instrument including back-to-back translation method, and then, explains about the data

collection and data analysis procedures.

Chapter 4 gives the result of data analysis .Data were analyzed using IBM Statistics SPSS

V23 software.
Chapter 5 discussion of the result of data analysis in comparison with hypothesized

relationship is provided in. The final chapter also includes discussion regarding the

practical implications of the results. Table 1.1 summarizes the materials in this thesis

covered by all the chapters.

Chapters Objectives
1. To give preliminary information about the
conceptualization of personality traits.

Chapter 1: Introduction 2. To identify the gap by explaining the

Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Data Analysis and Findings
Chapter 5 : Recommendations and
Conclusion
background of the research
3. To explain why the research is significant
4. To clarify research questions and
objectives
1. To give a comprehensive review of
literature on personality traits and ethical
behavior of employees including the
background and Hypothesis Development
of the research
2. To elaborate the theoretical and empirical
link for the hypothesized relationships
3. To discuss the applicability of qualitative
methods for answering research questions
1. To clarify researchers epistemological
position which relating to the theory of
knowledge.
2. To elaborate the methods covering
finalizing measurement instrument, data
collection process, and data analysis
procedures by which research questions are
answered
1. To give the results of data analysis
2. To discuss about the research findings in
relation to hypothesized associations
1. To discuss about practical implication of
the research findings

Table 1.1: The overview of objectives for each chapter

1.13. Summary

This chapter has provided necessary information on the conceptualization of personality

traits and ethical behavior of employees and background of the research in order to clarify

the gap and show the significance of the research. In other words, by briefly reviewing the

literature, this chapter conveyed that some individuals are found to be ethically behavior at

workplace, yet the identification of personality traits has not been thoroughly investigated

for the employees at the Ritz-Carlton Hotel Kuala Lumpur previously. Theoretical and

practical implications of identifying ethical behavior of employees were also discussed to

highlight the significance of the research. Following that, research questions and objectives

were presented. In the final section, the organization of the research presented a big picture

of how the research was conducted and clarified the aims of each chapter.