1

Chapter 1 THE PROBLEM AND ITS BACKGROUND

Introduction

One of the continuing challenges in the hotel and restaurant industry is providing quality service across all levels of the organization. Consequently, the importance of employees who provide customer services, particularly in hotels, cannot be overstated. These personnel are directly accountable for quality service delivery and customer satisfaction, which are both keys to strong performance.

Successful managers have the enthusiasm to respond to the changes in the organization (Woods and King, 2002, cited in studymode.com, retrieved on February 17, 2013). Similarly, hospitality managers should be able to provide effective leadership to employees (Riggs and Hughey, 2011, cited in www.digitalcommons.wku.edu, retrieved on February 17, 2013). Several studies have shown that the managers leadership style has a great influence on employees behavior, particularly the firms efforts and initiatives on customer service. One way that hotel and

restaurant managers and practitioners can influence employee commitment is to provide quality service by demonstrating a sense of leadership themselves (Parasuraman, 1994, cited in Clark, Hartline, and Keith, 2009, www.eurojournals.com, retrieved on February 17, 2013).

Furthermore, the leadership style of hotel and managers increases their quest for service quality which is further translated into employee performance that is conducive to service excellence (Bowen and Schneider, 1985, cited in Riggs and Hughey, 2011 cited www.highbeam.com, retrieved on February 17, 2013).

Moreover, Coplin (2003, cited in Riggs and Hughey 2011, www.mospace.umsystem.edu, retrieved on February 17, 2103)

indicated that organizations would like to hire potential leaders who are skilled in motivating people and making initiatives. Leadership skills

are just some of the employability skills most desired by employees. These skills are very basic in nature, also called key skills (Hoftstand, 1996, cited in Robinson, 2006, www.mospace.umsystem.edu, retrieved on February 18, 2013).

In this light, the researcher chose this particular study to find out how the leadership styles of fastfood chain managers can serve as

basis for the organizational commitment of the service crews to service quality in selected fastfood establishments. Jollibee and McDonalds located in Las Pinas. These restaurants are

Background of the Study In this study, the researcher chose Jollibee and McDonalds fastfood restaurants to find the leadership styles of the managers as basis for the organizational commitment to service quality of service crews in the outlets of the aforementioned fastfood restaurants in Las Pinas.

Jollibee, in General, and its Presence in the Philippines As per its official website, www.jollibee.com.ph (2013, retrieved on February 28, 2013), Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A

dominant market leader in the Philippines, Jollibee enjoys the lions share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi

Arabia, Qatar, and Brunei, firmly establishing itself as a growing international QSR player.

A Company that Values Family Jollibee was founded by Tony Tan and his family with its humble beginnings as an Ice Cream Parlor which later grew into an emerging global brand. At the heart of its success is a family-oriented approach to personnel management, making Jollibee one of the most admired employers in the region with an Employer of the Year Award from the Personnel Management Association of the Philippines, Best Employer in the Philippines Award from Hewitt Associated and a Top 20 Employer in Asia citation from the Asian Wall Street Journal. Aside from promoting a family oriented work environment, the brands values also reflect on their advertising and marketing. Jollibee knows their target audience very well: the traditional family and all communication materials focus on the importance of family values, making Jollibee the number one family fast food chain in the Philippines and a growing international QSR player.

A Well-Loved Brand Customer satisfaction has always been key to Jollibees success. Never losing sight of its goals, Jollibee has grown to be one of the most recognized and highly preferred brands in the Philippines. Now the market leader among fast food chains in the Philippines, claiming a market share that totals to more than half of the entire industry.

Great Tasting Products and Quality Systems Jollibees growth is due to its delicious menu line-up like its superior-tasting Chickenjoy, mouth-watering Yumburger and Champ hamburger, and deliciously satisfying Jollibee Spaghetti -ably

complemented with creative marketing programs, and efficient manufacturing and logistics facilities. It is made possible by well-

trained teams that work in a culture of integrity and humility, fun and family-like. Every Jollibee outlet welcomes customers with a clean and warm in-store environment and friendly and efficient service. And it is this tried and tested formula of delivering great-tasting food, adherence to world class operating standards and the universal appeal of the family values the brand represents that are driving the expansion of Jollibee both locally and in the overseas market.

Widest Store Network in the Philippines and an Emerging Global Player Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lions share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive

international expansion plan, and currently has 80 stores outside the Philippines-USA (26), Vietnam (32), Brunei (11), Jeddah (7), Qatar, Hong Kong, and Kuwait (1 each), firmly establishing itself as a growing international QSR player.

A Triumph for and of the Filipino and a Source of Filipino pride Jollibee dedicated its continuous success to the Filipinos who have been there from the very start. Jollibee is so well-loved every

time a new store opens, especially overseas, Filipinos always form long lines to the store. It is more than home for them. It is a stronghold of heritage and monument of Filipino pride.

Milestones / History 1975 Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This is later to become the 1st Jollibee Outlet. 1978 Bakery is established in Cubao. Jollibee posts 1st year sales of P2 million Jollibee incorporates as a 100% Filipino-owned company, with seven Jollibee fast- food restaurants within Metro Manila as initial network and the Yumburger as flagship product. 1979 Spaghetti Special is introduced 1st Franchise owned store opens at Ronquillo Sta. Cruz. 1980 Jollibee launches its 1st TV commercial. Jollibee Chickenjoy and French Fries are launched. The well-loved Jollibee mascot is conceived to support brand awareness and identity efforts. Other mascots are later introduced. Jollibee launches Chickenjoy, which becomes one of its best-selling menu items. 1981

Jollibee Foods Corporation enters list of Top 1000 Corporations. Jollibee ended the year with 10 stores 1982 Jollibee pioneers the use of in-store promotions, novelty premium items and Kiddie Birthday packages for kids. Palabok Fiesta is introduced. Jollibee Langhap Sarap TV ad 1983 The Langhap-Sarap TV ad Campaign is launched. Chickee and Lady Moo join the Jollibee mascots The Champ hamburger 1984 Champ hamburger is launched. Jollibee enters list of Top 500 Corporations and assumes market leadership in local fast food industry. Mascots Champ and Hetty join the Jollibee family. WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs. 1985 Jollibee becomes the market leader of the fastfood industry. Breakfast Joys are introduced. Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress.

1986 Jollibee wins the 9th International Foods Award from El Comestible in Barcelona, Spain. Tony Tan wins the Agora Award for entrepreneurship given by the Philippine Marketing Association. Top 250 Corporation list include Jollibee Foods Corporation. Jollibee opens its 1st international store in Taiwan Jollibee adds Chunky Chicken Sandwich in its menu. Jollibee No. 1 again in 87 1987 2nd Taiwan store opens. Sales of 570 million pushes Jollibee into the elite Top 100 Corporations. Jollibee opens 1st fast food outlet in Brunei, marking its entry into the global market. 1988 Jolly Twirls softserve is successfully launched. Jollibee system wide sales hit P921 million, further leading market share of 31% in the fast food industry and a dominant 57% share in the hamburger segment. Jollibee celebrates 10th year anniversary. Tony Tan is named one of the Ten Outstanding Manilans.

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Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign. 1989 2nd Brunei store opens. Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the 11th Philippine Ad Congress. Jollibee sales hit P1.3 billion marks, first fast food chain to surpass billion-peso sales mark. 1990 Jollibee adds coleslaw, Jolly Hotdog, Chickenjoy Take-Me-Out and Peach mango Pie to its ever-growing menu. Jollibee post sales of P1.8 billion. Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus. Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management.

1991 Jollibees 100th store opens in Davao City.

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Jollibee opens a record high of 35 new stores. Opens 1st store outside Luzon in Cagayan de Oro City. Jollibee launches its Pancakes and Jolly Meals. Jollibee sales hit a whopping P2.65 billion. The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress. Jollibee receives award for the outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP). 1992 Jollibee sales hit the P3.365 billion. Started using frozen patties for its popular hamburgers. Improved softserve ice cream line by offering fruit flavored ice cream Acquired 73% if the Hamburger segment. Opened another store in Jakarta, totaling to 2 stores in Indonesia. Jollibee had 112 stores nationwide. Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry. 1993

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July 1993, JFC was listed in the Philippine Stocks Exchange with an initial offering of P9.00 per share. October 1993, JFC share are being sold for P20.00, a windfall or more than 135%. Improved softserve ice cream line by offering fruit flavored ice cream Marketing launched its At Home Ako sa Jollibee ad campaign, focusing on Jollibees loyal customers Introduced the Kiddie Pack Promo Moved to Jollibee Centre Building in Ortigas Center, Pasig, the new Main Office site 148 Jollibee stores nationwide by the year end. Jollibee expands into the pizza-pasta segment with the acquisition of Greenwich Pizza Corporation. Jollibee is cited as on of the leading companies in Asia by the Far Eastern Economic Review. 1995 Jollibee acquires franchise of Delifrance. More stores opened in the Philippines, bringing the total to 168 Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia.

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1996 Jollibee opens its 200th store in Malolos, Bulacan. Jollibee is cited again as on of the leading companies in Asia by the Far Eastern Economic Review. The company reengineers its visual identity system. Jollibee system wide sales increased to P8.29 billion which translates to a market share of more than 50% among all hamburger fast food chains. Jollibee had 208 stores nationwide. July 10: Marys Chicken was born; a semi-self service restaurant and another Jollibee subsidiary. The company reengineers its visual identity system. Amazing Aloha was launched. 1st Jollibee store in Hong Kong opens. Jollibee launched various projects, such as Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito. These projects main objective was to protect and contribute to the development of the Filipino children. 1997 System wide sales increased to P11.17 billion.

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Jollibee International opened Jollibee Xiamen located in the Peoples Republic of China. Jollibee launched Kaya mo Kid project which aims to instill positive values, which helps children achieve their dreams and ambitions. 1998 Jollibee opens in Daly City. The company celebrates its 20th year anniversary. Opened 62 stores nationwide, bringing the total to 300 stores. Jollibee opens its 300th store in Balagtas, Bulacan. Jollibee receives the ISO 9002 Certification for its frozen patty line. Jollibee wins the Employer of the Year Award. 1999 Opened 50 stores nation-wide; total of 350 stores. Introduced the Cheezy Bacon Mushroom Burger to its line of specialty burgers. Far Eastern Economic Review cites Jollibee as the Philippines leading business corporation. 2000 More Jollibee stores opened, bringing the total to 381 stores Jollibee acquires Chowking Foods Corporation.

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For the 3rd straight year, Far Eastern Economic Review ranked Jollibee as the Philippines leading company. Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft. Systemwide sales reach P20 billion. 2001 Jollibee opens its 400th store in Intramuros. System wide sales rose to 18.8% to 24.11 billion. Income, before non-recurring charges, to P959 million. Network expanded to 800 restaurants. 2002 Revenues neared the P27-billion mark. Number of stores exceeded 900. Tony Tan made MAP Management Man of the Year. 2003 Jollibee store count closed to 988 stores nationwide. For the sixth straight year, the Far Eastern Economic Review ranked JFC as the Philippines Leading Company. Jollibee celebrates its 25th year. 2004

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The Chairman and Chief Executive Officer of the company, Mr. Tony Tan Caktiong was named the Ernst and Youngs 2004 World Entrepreneur of the Year. Jollibee opens its 500th store in Basilan. Jollibee inaugurates its biggest and most modern commissary in Camelray Industrial Park in Canlubang, Laguna with PGMA as guest of honor. 2005 TTC named World Entrepreneur of the Year by Ernst and Young. 2006 ETM receives Corporate Citizen Award of the year from CNBC Asian Business Leaders Awards. 2007 Jollibee opens 600th store in Aparri, Cagayan Jollibee opens Las Vegas outle. 2008 Jollibee launches Jollitown, the first childrens TV show in the country to be produced by a fastfood chain. TTC and ETM are featured by BBC and CNBC Managing Asia, respectively. JOLLIBEE marks 30th anniversary.

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JOLLIBEE bested some of Asia Pacifics biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore. Zenith Foods Corporation, the commissary plant of JFC, was adjudged the National winner of Meat Processing Plant AAA category in the search for Best Meat Establishment of the National Meat Inspection Service. Jollibee strengthens US network with the opening of three new stores. JOLLIBEE wins Award of Excellence in Philippine Quill Awards for Media Relations Program(30th anniversary campaign). JOLLIBEE bags CMMA and three Araw Values Award. Jollibee stages first ever holiday musical special for children dubbed A Magical Christmas at Jollitown. Jollibee and the Jollibee Franchisees Association launched the 30th anniversary special novelty offering Hug and Share Doll. Proceeds of the sales will all be donated to charity Biggest and grandest MaAga ang Pasko caps off Jollibees 30th anniversary. The more than 117,000 toys and books collected were the highest ever in the campaigns 14-year history.

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McDonalds, in General, and its Presence in the Philippines (mcdonaldscollector.multiply.com, 2013, retrieved on February 28, 2013) GLOBAL HISTORY. Ray Kroc started it all when he bought the

franchise of a small burger joint owned by Dick and Mac McDonald and opened his first restaurant in 1955 at Des Plaines, Illinois, United States of America. Presently, McDonalds has more than 30,000

restaurants, serving nearly 50 million people in over 119 countries everyday, making it the number one quick-service restaurant in the world. McDONALD's IN THE PHILIPPINES. George T. Yang built the first Golden Arches in the Philippines in 1981. As of 2005, McDonalds

Philippines is a 100% Filipino-owned company. From its first restaurant along Morayta, Manila in 1981, McDonalds has grown to become one of the leading fast food chains with close to 300 restaurants nationwide. With Kenneth S. Yang at the helm, McDonalds is now a multi-billion peso company that continues to expand and serve Filipinos all over the Philippines.

PRODUCTS AND SERVICES.

McDonalds is a customer-oriented

company that strives to offer Filipinos a combination of great tasting,

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quality food products at value prices with excellent service. Well-loved McDonalds products like the Big Mac, Cheeseburger, World Famous French Fries, Egg Muffin, Apple Pie, Sundae, and the Happy Meal, plus local favorites like Chicken McDo, Burger McDo, and McSpaghetti are products of the passion to always give what customers want. McDonalds ensures high standards in all aspects of operations, promising customers only the best meals in every restaurant at any time. Recently, McDonalds pioneered 24/7 restaurants and

24/7delivery service to cater to our customers changing lifestyles. Apart form its products and services, McDonalds gives back to the community through the Ronald McDonald House Charities (RMHC). RMHC supports childrens development and well-being through Bahay Bulilit and Bright Minds Read (BMR). Every Happy Meal purchase

gives 50 centavos to RMHC. Bahay Bulilit, a partnership between RMHC and the Department of Social Welfare and Development (DSWD), builds day-care centers and provides primary education to children below 6 years old. Bright Minds Read (BMR), on the other hand, is a partnership program with the Department of Education that teaches beginning reading to Grade 1 public school students.

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McDONALDs VISION, MISSION, AND VALUES.

Its Mission, Vision,

and Values are the guiding principles of how we should conduct our everyday business. Vision. Una sa Pamilyang Pinoy! It means to be the first to respond to the fast changing needs of the Filipino family. The first choice when it

comes to food and dining experience! And the first mention as the ideal employer and socially responsible company. Mission. To serve the Filipino community by providing great-tasting food and the most relevant customer delight experience!

Values (CMITE). Customer-driven, Malasakit, Integrity, Teamwork, and Excellence QSC. Our Quality, Service, Cleanliness (QSC) are its standards for

success. It is the foundation for customer satisfaction and repeat visits. The company believes that taking good care of our customers is the first vital step toward effective sales building. Without consistently superior QSC levels, other sales-building efforts are useless. There are about 45,220 restaurant establishments as of the start of the millennium. About 80% of these belong to the fastfood sub-sector.

Food franchising is extremely popular since businessmen rely on the bankability and popularity of the brand.

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The proliferation of many shopping malls practically in every part of the country made franchising in the fastfood industry attractive. The fastfood industry has a steady market and following given that there is a rapid expansion of food outlets in key areas in the National Capital Region and other provinces.

It is also a known fact that Filipinos love to eat. The popularity of fastfood establishments came in the 1980s and over the last few years, the industry has consistently posted double digit growth (Edralin and Castillo, 2001, cited in www.dirp4.pids.gov.ph, retrieved on February 21, 2013).

Competition is fierce in the fastfood industry.

The main

strategies include pricing and brand loyalty. Usually, consumers are price conscious and want value for their money. On the other hand, brand loyalty connotes many aspects. One of them is customer

service. In providing quality service, it is equally important for service crew to provide quality service to consumers.

In an article written by Alano (2008) in the Philippine Star, two fastfood chains in the top 10 list of the most popular fastfood restaurants were specified: Jollibee and McDonalds.

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The marks of excellent customer service are obvious in these two fastfood chains. Because of excellent customer service, the rivalry between Jollibee and McDonalds has remained for so many years. In the Philippines, Jollibee is the number one fastfood chain. While

McDonalds has more than 31,000 outlets in more than 100 countries where about 3,000 outlets are in Asia, Jollibee has only 600 outlets and over 50 international outlets, Jollibee has captured more than 65% share of the hamburger market in the Philippines (retrieved from www.bis.com on February 18, 2013).

This is more than half of the fastfood market as a whole and about twice of McDonalds sales in the country.

The fastfood industry in the Philippines has a very competitive structure. In order to maintain a competitive advantage, it is the priority of these restaurants to ensure that employees adhere to excellent quality service at all times. This adherence to quality service is rooted deeply in their organizational commitment to excellent performance.

The understanding of service quality is based on the paradigm of service (Gummesson, 1993, cited in Grizinic, 2006,

www,ukessays.com, retrieved on February 18, 2103).

In this sense,

managers strive for a balance between the human factor and

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technology, which means that it is imperative for managers to translate quality service to their subordinates, which then are put forward to excellent performance by these employees.

One way of maintaining organizational commitment among employees is the leadership style of fastfood chain managers which affect subordinates. Different leadership styles of hotel managers may also affect service-oriented actions of employees in different ways. How these employees respond to their managers leadership style may affect their performance (Brotherton and Shaw, 1996, cited in Wu,

Tsai, 2006, www.asia.edu.tw, retrieved on February 22, 2013).

Statement of the Problem

The researcher endeavored to find out how the leadership styles of managers can serve as basis for the organizational commitment to service quality of employees specifically service crews in Jollibee and McDonalds fastfood restaurants located in Las Pinas.

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Specifically, the study sought answers to the following questions:

1. What is the demographic profile of the respondents in terms of: 1.1 1.2 1.3 1.4 1.5 Age; Gender; Sex; Educational Attainment; and Number of Years of Experience?

2. What are the leadership styles of managers as perceived by their service crew members of Jollibee and McDonalds outlets in Las Pinas? 3. What is the perceived organizational commitment of service crew members? 4. Is there a significant relationship between the leadership style of managers and the organizational commitment as perceived by the service crews?

Hypothesis

Considering the nature of the study, the researcher came up with the following null hypothesis:

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Ho1: There is no significant relationship between the leadership style of managers and the organizational commitment as perceived by the service crews of Jollibee and McDonalds in Las Pinas.

Theoretical Framework

The

researcher

used

the

Hersey-Blanchard

Model

of

Leadership. This takes a situational perspective leadership which is appropriate for a service-oriented industry like the hospitality industry. The theory presupposes that the developmental levels of a leaders subordinates play the greatest role in determining which leadership styles are most appropriate. It is also based on the amount of direction and socio-emotional support a leader must provide given the situation and the level of maturity of the followers (Gosling, et al., 2003)

The task behavior is the extent to which the leader engages in providing and communicating the duties and responsibilities to the employees. This behavior includes telling people what to do, how to do it, when to do it, where to do it, and who is to do it. In this aspect, the leader engages in one-way communication.

The relationship behavior is the extent to which the leader engages in two-way communication with the subordinates. This

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includes listening, facilitating, and supportive behaviors. The leader engages in two-way communication by providing socio-emotional support.

The maturity aspect is the willingness and ability of a person to take responsibility for directing his own behavior. People tend to have varying degrees of maturity, depending on the tasks at hand.

Based on these behaviors, Blanchard developed four types of leadership styles:

Directing.

The leader provides clear instructions and specific

direction. This style is best matched with a low follower readiness level. It is called the telling style.

Coaching. The leader encourages two-way communication and helps build confidence and motivation on the part of the employee although the leader still has responsibility and controls decision-making. Selling style is best matched with a moderate follower readiness level.

Supporting.

With this style, the leader and followers share

decision-making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level.

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Delegating. This style is fit for leaders whose subordinates are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level

Research Paradigm

The researcher sought to tackle the leadership styles of managers to serve as basis for the commitment of quality service of employees in two fastfood restaurants; namely: Jollibee and

McDonalds located in Las Pinas; hence, the researcher came up with this research paradigm:

Input

Process

Output

PROFILE LEADERSHIP STYLES OF MANAGERS

SURVEY OF LEADERSHIP STYLES OF SELECTED FASTFOODRESTAURANTS IN LAS PINAS CITY

ORGANIZATIONAL COMMITMENT TO QUALITY SERVICE

Figure 1. Research Paradigm of the Study.

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In the Input-Process-Output model above, the Input phase involves the acquisition of resources necessary to satisfy the knowledge requirements of the study. Here, such knowledge

requirements were derived from the following sources: Profile of the Respondents and the Leadership Styles of Managers. Meanwhile, the Process phase refers to an action or set of actions necessary to achieve the desired output of the study. Thus, a Survey of Leadership Styles of Selected Fastfood Restaurants in Las Pinas was had. Finally, the Output phase refers to the end-product resulting from transforming the inputs using the course or courses of action specified under Process. In this study, the Output is a proposed model or Basis for Organizational Commitment to Quality Service. As mentioned, the researcher used the Hersey-Blanchard Leadership Model in determining the leadership styles of managers and their influence on the commitment of their employees to service quality. The leadership styles can be telling, selling, participating, and delegating. The organizational commitment of employees provides the basis for the delivery of quality service of employees in the aforementioned restaurants.

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Significance of the Study

The importance of leadership can be traced in the voluminous studies and researches on the topic. Many theories on leadership

discussed the importance of leadership, often considered as the most crucial role of managers particularly in providing quality service to employees.

As mentioned, the fastfood restaurant has a very competitive environment and the strength of these fastfood chains lies primarily on their people who provide quality service to the customers.

Undoubtedly, the performance of employees will spell the fastfood restaurants bottomline. In turn, these employees have superiors who influence the employees in accomplishing corporate goals. One form of influence is through the use of appropriate leadership styles.

As a consequence of the foregoing, the following shall benefit from this study:

Employees. An understanding of leadership styles and organizational commitment can give them appropriate measures on how to improve themselves in terms of customer service. This will serve as gauge on the part of the employees to be used later in their respective careers as

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they go up the career ladder.

This is specifically applicable to

employees who have the potential to be future managers later on.

Managers. Through the results of this study, this group can find ways on how to improve their subordinates performance. Indeed, they can have more knowledge on what organizational commitment is all about and how it is related to their own leadership styles. Managers will also know what leadership styles are applicable in their respective functions.

The

Companies

themselves.

This

means

that

the

primary

beneficiaries of this research are the organizations where these people work, that is, Jollibee and Mcdonalds. They are all responsible for the delivery of quality service to customers.

Educators in Hospitality Program Courses.

They can use this

research in their subjects, particularly in Hotel and Restaurant Management curricula. This can serve as a case study or an in-depth industry research.

Other Service-Oriented Practitioners. This group can also use this study to gain more understanding on how to manage their personnel.

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Future Researchers in Hotel and Restaurant Management. They can use this study as a form of reference. This will also serve as their guide in the conduct of their study.

Scope and Delimitation

The researcher conducted a study on the leadership styles of managers as a basis for the organizational commitment to quality service among employees-service crews of Jollibee and McDonalds outlets located in Las Pias. The researcher considered 30 service

crew members from the Southmall, Pamplona, and Casimiro branches of Jollibee and McDonalds. Thus being confined to service crews, The leadership styles were

other employees are not included.

perceived by the service crews themselves.

The researcher used a questionnaire to find out the leadership styles of managers and the relationship of these leadership styles to the organizational commitment as perceived by the service crews themselves.

There are researches published from 2000 to 2005, which were used by the researcher as she feels that the data are still relevant for

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the study. However, most of the literature and studies were written and published from 2006 onwards. The study does not deal on the other aspects of th e managers functions in relation to organizational commitment of employees. It did not also delve on the relationship of employees and their superiors as well as their specific levels of performance. It also did not assess the leadership style of managers based on their own assessment.

Definition of Terms

For purposes of this study, the following terms shall mean:

Employees.

The same refers to the service crews who provide

customer service in a fastfood chain

Fastfood Restaurant. It pertains to one classification of a restaurant which offers quick service, usually self-served and the customers pay as they order.

Leadership.

It means the ability of a manager to influence the

employees toward the achievement of goals.

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Leadership Style.

It refers to the type of influence by which a

manager manifests toward the achievement of goals.

Manager. The same refers to the lower level or frontline supervisor and middle manager in a fastfood chain.

Organizational Commitment.

It refers to the degree by which an

employee identifies with and participates in the attainment of corporate goals.

Quality Service. It refers to the achievement of the highest standards of customer service which translates to competitive advantage and a good measure of profitability.

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Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES

The researcher tackles here the various literature and studies related to the study.

Managers, specifically in service-oriented organizations, have developed their personal leadership styles. It is believed that

leadership style is a primary concern of managers since subordinates tend to work more effectively and productively if they are given fair treatment and respect that they deserve (Al-Ababneh and Lockwood, 2006, cited in epub.surrey.ac.uk, retrieved on February 17, 2013). Managers who adopt a specific leadership style further affects the performance of the organization as a whole because employees show commitment to their jobs and provide positive contributions to the organization (Griffin, 2002, cited in www.leadingtoday.org, retrieved on February 17, 2013).

Organizations in the hospitality industry are always under pressure to meet change and improve their performance (Erkutlu and Chafra, 2006, cited in www.epub.surrey.ac.uk, retrieved on February 17, 2013). It was suggested that hospitality organizations need to

provide effective leadership to improve guest services and employee

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job satisfaction (Woods and King, 2002, cited in studymode.com, retrived on February 18, 2013). Managers in the hospitality industry can improve employee job satisfaction using their leadership style to motivate employees and to achieve organizational goals (Al-Ababneh and Lockwood, 2006, cited in epub.surrey.ac.uk, retrieved on February 18, 2013).

Theories of Leadership The middle of the 20th century saw the rise of various theories and literature on leadership.

The Great Man theories are based on the belief that leaders are exceptional people born with innate qualities destined to lead. The next school of thought was the emergence of the Trait theories. The list of

traits or qualities associated with leadership exists in abundance and continue to be produced (Gosling, Marturano, and Dennison, 2003, cited in www.unpan1.un.org, retrieved on February 18, 2013).

The Behaviorist theories concentrate on what leaders actually do rather than on their qualities. There are different patterns of behavior that are observed and categorized as styles of leadership. The next school of thought is Situational leadership. This leadership is specific

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of the situation in which it is being exercised. For example, there are situations when an autocratic style is required, whereas in other occasions, participative style is more applicable (Gosling, et al., 2003, cited in www.unpar1.un.org, retrieved on February 18, 2013).

The Contingency theory focuses on identifying the situational variables which best predict the most appropriate leadership style to the particular situation. The Transactional approach emphasizes the

importance of the relationship on the mutual benefits derived from a form of contract in which the leader delivers such things as rewards or recognition in return to the commitment or loyalty of the followers. The last approach is the Transformational theory. The role of leadership is envisioning and implementing the transformation of organizational performance (Gosling, et al. 2003, cited in www.unpan1.un.org, retrieved on February 18, 2013).

Leadership Styles

Bass (1990, cited in Al-Ababneh and Lockwood, 2006, www.epub.surrey.ac.uk, retrieved on February 18, 2013) defined leadership as a process of interaction among individuals and groups which include both formal and informal structures a nd members expectations and perceptions. It is the ability of an individual to have

37

power that focuses on how to establish directions in the organization. From an organizational point of view, Schermerhorn (1999 cited in AlAbabneh and Lockwood, 2006, cited in epub.surrey.ac.uk, retrieved on February 18, 2013) believed that leading is a process used to motivate and to influence others to work hard in order to realize and support organization goals. Leadership influences employees behavior to

achieve organizational goals.

On the other hand, leadership style includes a pattern of behavior that leaders display during their work with and through others (Hershey and Blanchard, 1993, cited in Miller, 2002,

www.freepatentsonline.com, retrieved on February 18, 2013). It is a pattern of interactions between leaders and subordinates which includes directing, controlling and all the other techniques and methods used by leaders to motivate subordinates to follow their instructions.

According to Kavanaugh and Ninemeier (2001, cited in AlAbabneh and Wood, 2006, www.epubs.surrey.ac.uk, retrieved on February 22, 2013) there are three factors that determine the type of leadership style namely: leaders characteristics, subordinates

characteristics, and the organization environment. More importantly, the personal background of leaders such as personality, knowledge,

38

values, and experiences shapes their feelings on appropriate leadership that determine their specific leadership style. On the other

hand, employees also have their own personalities, backgrounds, expectations, and experiences. There are also factors that can

influence leadership style such as organizational climate, organization values, composition of work group, and type of work. In the meantime, leaders can also adapt their leadership style to the perceived preferences of their subordinates. Leadership style can be classified according to the leaders power and behavior as autocratic, democratic and laissez-faire. This is based on how leaders influence their subordinates (Mullins, 1998 cited in Rollinson, 2005, www.epubs.surrey.com, retrieved on February 18, 2013). The influence of leadership will differ according to the type of power used by a leader over their subordinates. Leaders will be more effective when they know and understand the appropriate usage of power over their subordinates.

According to Kavanaugh and Ninemeier (2001, cited in AlAbabneh and Lockwood 2006, www.epubs.surrey.com, retrieved on February 18, 2013), an autocratic style is rooted among leaders who have full organizational power and authority for decision-making without

39

sharing it with their subordinates. On the other hand, a democratic style means that leaders share their decision making power with employees. They also know how to delegate. Laissez-faire or free-rein style exists when leaders give their employees most of the authority on decision-making.

Centralized organizations favor an autocratic style while decentralized organizations prefer a democratic style (Woods and King, 2002, cited in studymode.com, retrieved on February 18, 2013). Thus, the culture of the organization has a strong influence on the prevalent leadership style in the organization (Rollinson, 2005,

www.epubs.surrey.com, retrieved on February 18, 2013).

Researchers have revealed that laissez-faire leadership is the least satisfying and least effective style of leadership (Bass, 1990, cited in Brown, 2003, www.etd.aau.edu.et, retieved on February 18, 2013). It is because leadership behaviors are accompanied by a little sense of accomplishment, clarity and group unity. One study validated the noneffectiveness of laissez-faire leadership among 54 managers. Bass found negative correlations between laissez-fair leadership and supervisors appraisals regarding the managers performance and promotability. Another example involved 276 United States Naval

40

Officers with negative correlations between laissez-faire leadership and military performance.

According to Wood (1994, cited in Al-Ababneh and Lockwood, 2006, www.epubs.surrey.ac.uk, retrieved on February 18, 2013) management in the hospitality industry is characterized as a being there style which provides stress, intervention, and control of operations and interactions between employees at all levels in the organization. A being there or hands-on leadership style is

considered as prevalent in the hospitality industry. The argument is that this style could be more effective than other styles to obtain employees job satisfaction and commitment in the organization since the managers work all the time with their employees. The managers also show more concern for employees problems in their respective work areas.

Vroom

and

Yetton

(1973,

cited

in

Brown,

2003,

www.northgeorgia.edu, retrieved on February 18, 2013) created the Vroom-Yetton Model of Leadership, a decision-making model.

According to this model, it is the most effective leadership decision style depends on whether the leader desires a high quality decision or is more concerned with subordinates acceptance of the decision. The models purpose is to predict when leaders should or should not allow

41

subordinates to participate in the decision-making process. A leader can choose to display democratic behavior which encourages participation from employees or autocratic where the leader makes decisions without inputs from employees. combination of both types. A leader can also use a

Bass (1985, cited in Brown, 2003, www.timothy-judge.com, retrieved on February 17, 2013) developed a model of transformational and transactional leadership which may be distinct yet serve to complement each other. Transformational leadership behavior

develops subordinates to have a personal desire to achieve goals. Meanwhile, transactional leadership develops the commitment of employees to achieve goals with a promise of reward for adequate performance and corrective measures for inadequate performance.

Bass argued further that between the two types, transformational leadership has the greatest power to promote loyalty and commitment among employees because leaders who possess this type of leadership style raise the level of awareness of employees on the importance of designated outcomes and instill in them that personal values support the corporate vision.

42

Hater and Bass (1988, cited in Brown, 2003, www.timothyjudge.com, retrieved on February 18, 2013) compared the effects of transformational and transactional leadership behaviors on

subordinates who worked for top-performing managers and ordinaryperforming managers. There were 171 subordinates in the top-

performing group and 141 subordinates in the ordinary-performing group. stronger A comparison of these two groups reveals that there are correlations between transformational leadership than

transactional leadership.

With regard to the separate transformational leadership behaviors, subordinates reporting to the top-performing managers and ordinary-performing managers viewed charismas as the strongest leadership behavior. Whereas for transactional leadership, contingent reward is the most important leadership behavior, subordinates of the top-performing managers chose management by exception as the more powerful leadership behavior.

Organizational Commitment

Generally, organizational commitment is a useful measure of organizational effectiveness (Steers, 1975 cited in Brown 2003 www.scielo.org, retrieved on February 22, 2013). It is a

43

multidimensional

construct

that

has

the

potential

to

predict

organizational outcomes such as performance turnover, absenteeism, tenure, and organizational goals (Meyer and Allen, 1997 cited in Brown, 2003, www.journal-archieves14webs.com, retrieved on February 18, 2013). Reichers (1986, cited in Brown 2003, www.ncsu.edu, retrieved on February 18, 2013) claimed that organizational commitment was in reality a collection of commitments to multiple coalitions and constituencies such as managers, rank and file employees, and customers.

In another study,

Becker (1992 cited in Brown 2003,

www.mubs.ac.ug, retrieved on February 18, 2013) examined whether employees commitment to different constituencies were better predictors of job satisfaction. It was discovered that employees

commitment to top management, supervisors, and work groups contributed significantly beyond commitment to the organization.

Meyer

and

Allen

(1991

cited

in

Brown

2003,

www.upetd.up.ac.za, retrieved on February 18, 2013) explained the three types of organizational commitment. The first type is affective commitment. It refers to the employees attachment to, identification with, and involvement with the organization. Employees with a strong

44

affective commitment continue to work in the organization because they want to. Continuance commitment refers to an awareness of the costs of having to leave the organization. This means that they stay because they need to. Normative commitment on the other hand reflects a

feeling of obligation to continue employment.

Further studies of Meyer and Allen revealed that affective commitment is considered as a more effective measurement of organizational commitment. Employees with strong affective

commitment would be motivated to higher levels of performance and make more meaningful contributions than employees with continuance or normative commitment.

In nine studies involving 2,734 persons by Dunham, Grube, and Castaneda (1994, cited in Brown, 2003, www.mubs.ac.ug, retrieved on February 18, 2013) participatory management and supervisory feedback influenced employee levels of affective, continuance, and normative commitment. Higher levels of affective commitment were seen for those who were given feedback about their performance and allowed participation in decision-making.

45

Quality Service Delivery in the Hospitality Industry

Service quality is a way of ensuring total satisfaction to the customers. It is an approach that leads to competitiveness,

effectiveness, and flexibility of the entire company. The benefits arising from high quality service is seen in a more competitive positioning on the market (Grizinic, 2007, cited in www. hrcak.scre.hr, retrieved on February 17, 2013).

Two basic approaches to service quality can be traced way back in the early nineties of the 20th century. technical and product-oriented aspect. The first approach is the The second approach is

customer-oriented. These two approaches have been recognized as results of managerial efforts to consider the aspect of quality. As the managers abide by the set standards, they also wish to satisfy the customers. In both of these functions, the managers also display

leadership styles and competencies that employees look up to and follow through. In doing so, the collaboration of the efforts of the

managers and the subordinates spell excellent performance and quality service. And this is a concept of quality service measurement in the hotel and restaurant industry. The quality of service in this industry is

46

an important factor of a successful business (Grizinic, 2007, cited in www. hrcak.scre.hr, retrieved on February 17, 2013). Effectiveness Of Leadership At Mcdonalds Management UK essays.com (2012) published an article of a former Mcdonalds employee after completion of undergraduate studies. The writer was able to observe the role played by members of a team, their team work, and leadership of the Manager of the restaurant. The

former employee analyzed the leadership styles practiced, evaluated the effectiveness of leadership at McDonalds restaurant , and made recommendations indicating how leadership and team work can go hand in hand to improve the performance of the organization. The first McDonalds opened its doors to customers in t he UK in 1974. Currently, over 2.5 million people in the UK placed their trust in McDonalds, expecting that the multinational would provide them with food of a high standard, quick service, and value for money. Models and theories that will be discussed in the later portions of this article are Adairs Leadership Model and Maslows theory of hierarchy which will be applied to McDonalds. Leadership styles such as autocratic, democratic, and persuasive are also discussed to find out which of the three is the ideal model for McDonalds.

47

A team is a collection of individuals who are interdependent in their tasks, who share responsibility for outcomes, who see themselves, and who are seen by others as an intact social entity embedded in one or more larger social systems (for example, a business unit or the corporation), and who manage their relationships across organizational boundaries (Cohen and Bailey, 1997). A team is defined as a small number of people, with a set of performance goals, who have a commitment to a common purpose, and an approach for which they hold themselves mutually accountable (Katzenbach and Smith 1993). There are several factors that influence the success of a team. Team members must have the required skills and attitudes and must create an ambience in which everyone can work with devotion. There should be transparency within the team which is possible if there is effective system of communication between all members. All members of the team must have set responsibilities and must be aware of what is expected from them. accountable. In this way, all members of the team will be

All members must have harmonizing skills and must

coordinate among themselves to eliminate any uncertainties or reservations. Members of a team must genuinely appreciate the efforts of fellow members.

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An effective leader is one who does the right things. Leaders can effectively develop and lead teams if they have the ability to create and communicate a vision what the organization should be. They

should have the ability to communicate with and gain the support of all team members. They should have the perseverance to head in the desired direction under bad conditions and create the suitable culture to obtain the needed results. Levine, R. (2000) is of the opinion that leaders need to focus on moving people and organizations forward by increasing the

competency of staff and the co-operation of teams to improve the organization. Leadership is related to motivation, interpersonal

behavior, and the process of communication. Leadership is important in attempting to reduce employee dissatisfaction (Crow, 1995). The responsibilities of the Restaurant Manager or the team leader at McDonalds are to set targets, plan budgets, maintain and control stock, recruit, train and motivate a team, create and drive marketing campaigns, and build and foster customer relations. Leaders at McDonalds restaurants do not lay down any fixed rules on how quickly individuals of a team can progress. Opportunities are given to team members to become managers if they perform well. For this to happen, the crew member must contribute to the success of the team.

49

The management style adopted by team leaders at McDonalds is to create outlets which are fun places to work. This is called "teambuilding." Leaders at McDonalds foster accountability and understand the social responsibility culture and incorporate these activities into their businesses. In fact, the team leaders have all the characteristics that were used by Stogdill (1950) to define leadership. The characteristics include: traits; behavior; influence; interaction patterns; role

relationships; occupation of an administrative position; articulating visions (for example, Bill Gates); embodying values; creating environment for the things that can be accomplished; entities that perform one or more acts of leading; the ability to affect human behavior so as to accomplish a mission; and influencing a group of people to move toward its goal setting or goal achievement. (Stogdill, 1950) The McDonalds Model is that of Adairs Model which is called action-centered leadership. This is a constructive model according to which the leader inspires others by their own enthusiasm, commitment, and the ability to communicate enthusiasm to people (Adair, 1993). Teams were developed by team leaders so that a common task could be accomplished.

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Adair (1993) identifies three different approaches to leadership which can be called leadership functions: (1) accomplishing the task, (2) maintaining the team, and (3) meeting the individual needs of the team members. Adair believes that leaders are not born but emerge from situations. The leader who emerges can adopt any style of leadership that warrants the situation. According to Adair, a leader is one who has certain innate characteristics which are required to perform his/her role. A leader according to him must have personality and character. Adair quotes Harold Macmillian who said: "that a man who trusts nobody is apt to be the kind of man that nobody trusts." His leader must have integrity, wholeness, and a moral sense. According to Adair, the three functions of meeting the demands of the task, maintaining the team, and meeting the needs of individual team members must be kept in balance and none of them should be neglected. The team leader areas of responsibility must include qualities and competencies such as (a) to behave with the highest level of authenticity and integrity by building a trusting relationship with all team members; (b) to be committed fully to the development of the team; (c) to be open and communicate, but must practice good listening skills; (d)

51

be willing to share perceptions, assumptions, and views openly with team members; and (e) to allow team members to work independently but in a self-organized manner. Team leaders must take time required to do the work and support teams efforts and also reflect on its actions. They must maintain and practice accountability and at the same time have a good working relationship with the team members. They should always be ready to monitor and evaluate how the team functions. They should clearly state the purpose of work without being ambiguous or complex. They must try to experiment and share experiences without blame. They should also provide coaching and mentoring support to the team (Stevenson, 2004). The organizational structure of McDonalds Corporation is centralized but that of its retail outlets is different. In McDonalds

outlets, the employees work as a team to ensure that customers requirements are taken care of in a short period of time. Besides the manager, the rest are all attendants who take orders and deliver as fast as they can. There is division of labor among members of the

organization, and the co-ordination of their activities are directed toward the goals and objectives of the organization. Structure is the pattern of relationships among positions in the organization and among members of the organization. Structure

52

makes possible the application of the process of management and creates a framework of order and command through which the activities of the organization can be planned, organized, directed, and controlled. Structure defines tasks and responsibilities, work roles and

relationships, and channels of communication (Mullins and Laurie, 2008). At McDonalds, the span of control of the manager is narrow. The span of control refers to the number of subordinates working under the supervisor. So if there are five subordinates working under the supervisor or manager, the span of control is five. If the span of

control is narrow there are certain advantages (Jenkins and Tessa, 2000). One of the merits is that there is tight control over subordinates and the manager is able to closely supervise the daily operations resulting in better co-ordination. Managers have time to think and plan and they are not burdened with too many problems. A narrow span of control reduces delegation and managers are able to do more work. On the contrary, a flat organization implies a wide span of control. Theorists are of the opinion that tall organization structures are inefficient, despite the advantage of a narrow span of control (Robbins, 2007). One can learn to use leadership approaches to develop highperforming teams and individuals at McDonalds. Team leaders were

53

aware of the importance of team building and used suitable tools and techniques to help teams reach their full potential. McDonalds Crew Members are responsible for customer service, food preparation, and cleanliness and hygiene. Crew members will be asked to work in any of these areas depending on the individuals preferences. The researcher worked as a Customer Service Crew

member and the job entailed taking orders and delivering meals to customers at the counter; being courteous and polite; and maintaining high levels of customer satisfaction. The responsibility of the Food Preparation Crew Members was to prepare and cook McDonalds menu. The teams are self-managed and all teams or crew members work with team spirit. There is a sense of respect for each other. However, it can be said that most crew

members do not understand the organization strategy as they do not have access to this information. The communication between crew

members is informal which enables every individual to maintain good harmony within retail outlets. The crew members at McDonalds are committed because their needs are met by the team leadership. The leadership has developed an ideal and committed team which can be easily motivated. committed and motivated team is always successful. A

Larson and

54

LaFasto (1989) made a study to understand the characteristics of successful teams and found that all the highly effective teams always had the characteristics such as a clear, elevating goal, a result-driven structure, competent team members, unified commitment, a

collaborative climate, standards of excellence external support and recognition as well as principled leadership (Larson and LaFasto, 1989). From this finding, it is evident that effective teamwork has a strong relationship with motivation. According to Maslows theory, the hierarchy of human needs is classified into five levels. This theory advocates that the higher level needs of an individual will become motivating factors only when the lower level ones are satisfied. The five levels starting from the lowest hierarchy to the highest level are: Physiological At McDonalds the motivating factors of the crew members are salary, over time, daily lunch/meal, and transportation facilities. Safety The next important factor is safety which includes elements such as job security, medical insurance, and sick leave. Social - There is very good interaction among crew members and customers. This has resulted in excellent teamwork.

55

Self-esteem

Crew

members

are

motivated

as

the

team

leader/manager has full confidence in their abilities. They have a good reputation because of the McDonalds brand equity. They are

recognized and appreciated by fellow colleagues, subordinates, and supervisors. Self-actualization The crew member reach their full potential when all his needs are taken care of (Maslow, 1987). The disadvantage that was observed was that subordinates are unable to make any decision. They have to always obey and listen to the orders of the manager. However, the crew members (team members) had flexible schedules. There were team members from

various parts of the world working together. They had different backgrounds and different interests and all worked together to make an ideal work force. In fact there was diversity. What follows is a detailed account of the authors observations on leadership styles and its impact on teamwork in McDonalds restaurants. The leadership style practiced in McDonalds restaurants is autocratic and, therefore, crew members are not involved in any decision-making. It is also a fact that suggestions from crew members are not welcomed as most of them are new. Crew members are young and work in these restaurants during summer vacations and, therefore,

56

cannot offer ideas to the leader.

Crew members are young and,

therefore, motivated if they are paid wages on time and given extra benefits such as lunch and transportation. This motivates the crew to work in spite of the autocratic leadership. Autocratic style of leadership does not fulfill the self-esteem requirements reflected in Maslows hierarchy. However, at McDonalds, crew members get self-respect and also respect each other. McDonalds will not adopt another style of leadership as the management fears that a persuasive or democratic style will not deliver the goods, viz., delivering quality food on time to its customers. The researcher would like to compare persuasive and democratic styles of leadership with that of autocratic leadership before arriving at a conclusion: which one of the three styles will ideally suit McDonalds and, at the same time, have an impact on team work. Persuasion is one of the requisites of all leaders by which act they can move people toward a new situation. Persuasion does not include rational arguments. A leader can use persuasion as a tactic to gain the support of diverse groups of people using basic human emotions. It is normal that persuasive strategies may provoke team members and some of them may oppose ideas or suggestions. The democratic leadership style or participative style encourages

57

employees to be a part of decision-making allowing more participation of teams in the decision-making process.

Persuasive Leadership Democratic Leadership Pros Team members will be able to perform better as they can be easily persuaded to work. Teams have the independence to work in their own way. Through persuasion, leaders can motivate teams easily. Members are encouraged to raise suggestions and ideas. Team members have the independence to make and participate in decision-making. Members are more committed and can be easily motivated. Team members perform better. Cons Persuasion takes time as team members may not accept decisions or orders immediately. New team members will find it difficult to understand and follow the policies of the organization. The decision making process if lengthy.

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Since more freedom is given to teams, there are bound to be more conflicts if individuals do not agree Members have the right to reject decisions if it is not in their favor. The above-mentioned styles do not suit the functioning of McDonalds. Autocratic leadership is the only style that will fit

McDonalds restaurants as team leaders or managers are willing to only make unilateral decisions. This style of leadership exerts a lot of

pressure on team members who are often very stressful. Despite this disadvantage, McDonalds crew members find the work environment a fun place to be. It was observed that crew members did not complain when directed or ordered by team leaders. In fact, they seemed to prefer an autocratic style. It can therefore be emphasized that

autocratic leadership style is very effective when crew members are stressful. They only have to follow orders and do not have to be

creative. The disadvantage is that people may not like to be part of a team that is being dictated by a leader and result in high employee turnover. However, McDonalds is not affected by employee turnover as it is very easy to find replacements. At McDonalds, the motivation to perform is not because of leadership, but because of the willingness of team members to perform as individuals. You dont motivate individuals. Provide them with an

59

environment to be self motivated. It is a personal decision, but it is the managements job to provide the right environment (Schofield). Autocratic leadership cannot motivate but can only dictate. McDonalds could adopt another style of leadership but fears that there will be severe backlash from the teams who may seek more independence. McDonalds cannot afford to give authority to crew members or train them to self starters. McDonalds epitomizes globalization which, in turn, supports standardization. The team leaders of all McDonalds

outlets are trained to voice the opinion of its senior management. So, only autocratic leadership will thrive within this multinational food chain. The author would like to suggest to integrate some of the leadership models to develop a more comprehensible model for the development of crews or teams at Mcdonalds. The model proposed is that which was developed by Harvey, Millett, and Smith (1998) who integrated some of the literature to develop an all-inclusive model for team development. The model proposes eight key points that can

facilitate the successful implementation of teams. These points, which embrace both critical elements of teams, as well as enabling factors, are: (1) clear goals, (2) decision-making authority, (3) accountability and responsibility, (4) effective leadership, (5) training and

60

development, (6) resources, (7) organizational support, and (8) rewards for team success (Harvey, Millett, and Smith, 1998). Team leaders at McDonalds should also identify leadersh ip behaviors that could be used to perform and help the team to lead it. They could draw inspiration from the six behaviors that were identified by Manz and Sims (1986). These behaviors are (a) encouraging selfobservation/self-evaluation so that the team can gather the information required to monitor and evaluate its performance; (b) encouraging selfgoal setting so that the team sets performance goals; (c) encouraging self-reinforcement so that the team recognises and reinforces good team performance; (d) encouraging self-criticism so that the team is elfcritical and discourages poor team performance, (e) encouraging selfexpectation so that the team has high expectations for group performance, and (f) encouraging rehearsal so that the work group thinks through and practices an activity before actually performing the activity ( Manz and Sims,1986, cited in Cohen, 1993). It can be concluded that only autocratic style of leadership can be practiced at McDonalds. It is argued that autocratic style of leadership will not thrive in organizational cultures that foster team work. However, McDonalds seems to thrive on autocracy and its

teams at thousands of outlets all over the world seemed to have

61

accepted being dictated to.

The teams have thrived under this

leadership style and have been committed. At McDonalds, autocratic team leadership does not fully utilize the skills and capabilities of available human resources and yet thrives and flourishes, bringing in more profits to the business conglomerate as well as customer satisfaction. The narrow span of control can help team leaders of McDonalds outlets to have greater control over crew members. Team members are disenchanted because they do not have self-esteem but they are satisfied as they are part of a huge multinational corporation that has a big reputation and enjoys an excellent image and brand equity. The only consolation for team members are the salary and perks and the recognition and appreciation by fellow colleagues, subordinates, supervisors, and satisfied customers.

Help4fastfood.wordpress.com (2012) posed this query: Does McDonalds offer a model which other businesses should follow? At first, most people must have laughed at the idea of a chain of restaurants selling identical products all over the country, but little did they know that the genius idea that they had mocked would go on to revolutionize the business environment of the future. McDonalds is now the international market leader for fastfood, and has been ever since its pioneering first restaurant was launched in San Bernardino,

62

California in 1948. Kroc, the founder, was somewhat of an obsessive individual who was fixated with rules, regulations, procedures, and obedience to his strict rules of discipline. Kroc was especially

concerned with maintaining McDonald's clean image, as well as that of life in general, and could regularly be seen picking up litter outside of his restaurants to maintain the high standard of cleanliness upon which many of his principles were based. Regarding Quality, Service, and Cleanliness, McDonalds uses the finest available products and carefully developed formulae. They also encourage their employees to check products that they prepare or serve. McDonalds believes that cleanliness is a magnet drawing

customers to their restaurants (McDonald's Crew Handbook, 1996), and, therefore, aim to ensure that their restaurants are spotless at all times, both inside and out. Quality and cleanliness, however, are

wasted without fast, courteous service. McDonalds firmly believes that a smile does as much to bring a customer back as does the best food in the world. McDonalds always reminds its employees that the customer is the most important single factor in their business. They also train their employees to treat everyone, especially the customer, in the way that they would want to be treated themselves. Mystery Diners, employed by the company, visit each store once a month checking that

63

overall customer service requirements are met. McDonalds believes that through delivering great levels of QSC, (Quality, Service, and Cleanliness), 100% customer satisfaction can be achieved, enabling them to become the UKs favorite quick service restaurant. Treatment of Workforce McDonalds state that they value people most by being: Reliable In doing what they say they will do; Safe In operating practices which protect their customers, employees, and reputation; Responsible In making decisions which balance short, medium, and long term aspirations; Consistent In their delivery of quality, service, cleanliness, and value; Trustworthy In their dealings with each other, their customers, and their business partners; The Leader In advancing their position by being innovative, flexible, and goalorientated; Customer driven In listening and responding to their customer needs; Ethical In their internal and external policies and practices; Well Run Through visionary leadership and focused management; A Good Employer In recognizing that their employees are the key to customer satisfaction (McDonald's Crew Handbook, 1996). With respect to Training, it is the aim of McDonalds to create a learning environment which facilitates the development of the highest level of skill among all employees. Their training programs have been

64

designed to enable all employees to achieve the companys goals of 100% customer satisfaction, increased market share, and increased profitability. An ongoing program of training evaluation enables

McDonalds to keep training procedures up to date and relevant to the needs of the business. McDonalds believes that training is the

foundation of their success and that it is an ongoing process that belongs to all of their employees. The uniform is an example of

standardization as there is little variation throughout the world. Different colors are used in certain countries due to religious circumstances. Each year, each restaurant (excluding franchises) is checked rigorously by Area Managers who make sure the crew and managers are carrying out operations correctly, as well as other general checks. Once a year, a restaurant experiences what is known as a full field, where area managers, other restaurant managers, and trainee managers perform a comprehensive check on the whole operation. The results of these

inspections are put into tables and there is always fierce competition between stores with regard to scores received. On Employee Relations, it is McDonalds policy to actively promote from within. Promotion is offered to employees who show initiative and a desire to advance. Many of McDonalds finest managers and senior company personnel have been promoted from the crew level.

65

This way, skills are kept in the firm, with training costs minimized. McDonalds believes that people are their most important asset. Loyalty and dedication are the foundation of every successful business and McDonalds feel that they are especially fortunate in having so many highly-skilled and motivated people. Loyalty points are awarded to

employees who reach certain service milestones. There is a catalogue called Maritz from which employees can redeem their accrued points in exchange for goods. This scheme gives employees an incentive to

remain loyal to McDonalds, reducing training costs, and also improving efficiency. Crew meetings are held about once a month to discuss

policy, procedures, products, and problems in the restaurant. Smaller sessions are also held a few times each year for the purpose of discussing ideas, suggestions, and problems. These sessions give

employees the opportunity to make their views known to the company. Private medical care is provided to employees who have worked in the company for 3 continuous years. Life Assurance is provided to

employees who have completed one years continuous service. To try and improve team-working skills and reduce the 60% staff turnover, McDonalds organize regular nights out and activities for its employees. McDonalds supports its employees through universities -- giving grants of up to 1500 per year depending on the type of course. It also runs its

66

own Junior Business Management Program for 18-21 year-olds, with a starting salary of 16,500 per year. It also offers its employees the opportunity to become part of the corporation through buying McDirect shares.

Regarding Standardization, a key feature of the McDonald's model is the manner in which all of their operations are standardized. Production line techniques are implemented in restaurants to achieve the fast preparation of uniform quality products. With a limited menu and patented formulas, the corporation ensures that products remain homogenous over distance and time. The fixtures and fittings of

restaurants are largely identical throughout the world, with minor variations to account for cultural differences. The McDonalds model exerts an enormous amount of control over its franchisees and customers, forming the fundamental basis of the business. Employees respond to customers requests with scripted questions, ensuring the fast delivery of service, and same experience time and time again. Control over employees has been increased over the last decade due to technological advancements, such as EPOS (Electronic Point of Sale) systems which eliminates the need for the operator to use arithmetic, or remember prices. Customers are subtly controlled by the uncomfortable seating and standardized menus. This reflects the quantitative aspects

67

of the quick-service food industry, increasing the number of customers by reducing idle time. Standardization within the McDonalds model is apparent in both the restaurants and their suppliers. The success of McDonalds can be attributed to efficiency, calculability, predictability, and control. Here, among others,

McDonalds has an effective body of rules and regulations, which ensure highly efficient work. Predictability is a fundamental aspect of

McDonalds success. It gives the public assurance that products and services will be the same over time and in all vicinities. McDonalds has discovered that people have come to prefer a world of no surprises and therefore try to make the McDonalds experience as similar as possible, in terms of service and food. There are numerous advantages of

adopting the McDonalds model. Nowadays, there is a wider availability of goods and services which have a greater sphere of influence. It is far more convenient for the public to obtain products and services, due to the increased number of outlets, and uniform quality of goods and services.

The foregoing has explained how the McDonald's model has become a characteristic of the contemporary international economy and has helped create thousands of jobs and improve many economies. It is

68

felt that if other businesses decide to follow this model, the world could become too standardized, causing losses in national identities and cultural differences. The finest element of the McDonald's model lies in its rationality, and it is strongly felt that this aspect should be considered by businesses looking for a model to follow. However, rational systems tend to generate irrational consequences, and it is the impact on society, as a whole, that a business must consider before adopting a similar code of practice.

Synthesis

The researcher reviewed several works such as books, journals, and studies on leadership, leadership styles, commitment and service quality in service-oriented industries such as the fastfood industry.

The literature and studies reveal the importance of leadership style in the performance delivery. Managers have a great influence on how their people would perform. These managers display different

leadership styles which eventually provide the commitment and job satisfaction of employees.

69

Organizational

commitment

is

significant

in

the

overall

attainment of company goals. Based on the studies, organizational commitment is related to the kind of leadership style that the managers display. In turn, the commitment of employees also provides a basis for quality service delivery among employees.

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Chapter 3 RESEARCH METHODOLOGY

This chapter contains the description of the research design used and materials and procedures employed for this study on the leadership styles of managers as basis for the organizational commitment of employees to service quality in Jollibee and McDonalds fastfood restaurants located in Las Pinas.

Research Design

This study used quantitative research in the form of a Descriptive Research Design. The method of collecting data was through a survey questionnaire. With the use of the questionnaire, this research is basically statistical in nature. It made inferences on a population based on the results of the sample.

In terms of problem identification, this study can be described as formal since the problems are clear and specific.

71

The research environment was in a field setting since this was conducted in actual conditions such as during the operating hours of the two fastfood chains under study.

With regard to the time frame, the research design is crosssectional since this study was conducted only at one point in time.

Respondents of the Study

For this study, the researcher considered 30 service crew members from Jollibee and McDonalds bramches in SM SouthMall, Pamplona, and Casimiro. The breakdown is as follows: Table 1 Respondents of the Study
Location Number of Service Crew Members ____________________________________________________________ Jollibee SouthMall Pamplona Casimiro Total 5 5 5 15 McDonalds 5 5 5 15

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The researcher used the Purposive Sampling Technique since the desired criterion of the researcher is to find out the leadership styles of managers and commitment as perceived by the service crews themselves. Under the purposive sampling method, non-proportional quota sampling is a sub-category wherein the researcher will specify the minimum number of sampled units she wants in each outlet.

The profile of the service crews can be summarized in this wise: in terms of age, all of the respondents have ages between 18-23 years old. All of the respondents are working as service crews for the last 2 years.

Research Instrument

The researcher used the leadership style questionnaire adapted from Hersey and Blanchards leadership model. It is a structured

questionnaire made up of several statements which determines the kind of leadership style the managers possess.

The leadership questionnaire was adapted from the leadership questionnaire of www.flexible.partners.com. Blanchard Leadership model. It depicts the Hersey-

73

The

employees

answered

an

organizational

commitment

questionnaire to assess their commitment to service quality which was adapted from the Cornell Hospitality Quarterly published in May 2009.

The questionnaires used the following Likert Scale:

5 4 3 2 1

To a very great extent To a great extent To a moderate extent To a slight extent To almost no extent

Data Gathering Procedure The researcher conducted the study at Jollibee and McDonalds branches located in Las Pias, specifically, those in SM SouthMall, Pamplona, and Casimiro. The researcher asked the permission of the managers of Jollibee and McDonalds. Upon approval, the researcher requested Then, the researcher

service crews to answer the questionnaires.

gathered the questionnaires and tallied the results. Using inferential statistics, the researcher used appropriate statistical tools and then

74

interpreted the results.

Thereafter, the researcher analyzed the

findings and made conclusions and recommendations.

Statistical Treatment

The researcher utilized the following statistical tools which will help in analyzing and interpreting the results of the study: Weighted Mean was used in answering Statement of the Problems 2 and 3 stated in Chapter 1 of this work; thus:

1. What are the leadership styles of managers as perceived by their service crews of Jollibee and McDonalds outlets in Las Pinas? 2. What is the perceived organizational commitment of service crews?

The questionnaires used the following Likert Scale:

5 4 3 2 1

To a very great extent To a great extent To a moderate extent To a slight extent To almost no extent

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The statistical limits are the following 1.00-1.49 to almost no extent 1.50-2.49 to a slight extent 2.50-3.49 to a moderate extent 3.50-4.49 to a great extent 4.50-5.00 to a very great extent The Pearson Correlation Coefficient r is a statistical measure that shows the degree of the relationship between the independent variable x and the dependent variable y. In analyzing the correlation value, the researcher considered the sign and the magnitude. For the sign, if x increases and y increases or if x decreases and y decreases, then the correlation is positive; a direct relationship exists. If x increases and y decreases, or if x decreases and y increases, then the correlation is negative; an inverse relationship exists. For the magnitude, the following conclusions may be given: If r +/- 1.00, a perfect positive/negative correlation exists If r = +/-0.80 to 0.99, a high correlation exists If r = +/-0.40 to 0.79, a moderate correlation exists If r = +/-0.10 to 0.39, a low correlation exists If r < +/- 0.10, the correlation is negligible If r = 0, a zero correlation exists

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Chapter 4 PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

The researcher presents below the analysis and interpretation of results on the study of the leadership styles of managers and the organizational commitment to service quality as perceived by service crew members of Jollibee and McDonalds branches at Las Pias City.

Table 2 Age of the Respondents Age of Respondents Frequency Percentage ______________________________________________________ 18-20 21-23 24-26 Total 11 12 7 30 36.67 40.00 23.33 100.00

Based on the table, most of the service crews for both Jollibee and McDonalds have ages between 21-23 years old, or 40% of the population, followed by those with ages 18-20 years old, or 36.67% of

77

the population. There are seven service crew members with 24-26 years old, or 23.33% of the population.

Table 3 Gender of the Respondents Gender Frequency Percentage _______________________________________________________ Male Female Total 13 17 30 43.33 56.67 100.00

Majority of the service crew members are female, or 56.67% of the population; on the other hand, male service crew members consist 43.33% thereof. Table 4 Educational Attainment of the Respondents Educational Attainment Frequency Percentage _______________________________________________________ Undergraduate College Graduate Currently Studying Total 12 8 10 30 40.00 26.67 33.33 100.00

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Based on Table 4, there are 12 service crew members who did not finish their studies, or 40% of the population, while eight, or 26.67% of the same are college graduates. members who are currently studying. The following tables are presented in answering statement of the problem two, that is on What are the leadership styles of managers as perceived by their service crew members of Jollibee and McDonalds outlets in Las Pias City? There are 10 service crew

Table 5 Supporting as Leadership Style

Descriptions
1. My superior appoints staff into task groups to action policies affecting us. 2. My superior discusses any organizational or policy changes with staff prior to taking action 3. My superior avoids making judgments or premature evaluation of ideas or suggestions. 4. My superior rotates the role of team briefer among the staff. 5. My superior provides staff with the time and resources to pursue their own developmental objectives. 6. My superior avoids evaluating problems and concerns as they are discussed. Grand Mean

Weighted Mean
3.20

Interpretation
To a moderate extent To a moderate extent To a great extent

3.35

3.70 To a great extent 3.70 To a moderate extent To a moderate extent To a moderate extent

3.35

3.45 3.47

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Based on the questionnaire, numbers three, seven, 11, 15, 19, and 23 connote a supporting leadership style. In the supporting style, as affirmed in the findings, statements three and four show that the crew members perceived the managers as not making abrupt conclusions on premature ideas. The manager is seen as the facilitator and if the causes are found to the problems, they are addressed to the leader. The leader is seen as listening, praising, and making the service crew member feel good.

Table 6 Coaching as Leadership Style

Descriptions
1. My superior holds periodic meetings to show support for company policy and mission. 2. My superior recognizes staffs achievements with encouragement and support. 3. My superior meets with staff regularly to discuss their needs. 4. My superior explains the benefits of achieving their work goals to staff. 5. My superior holds regular meetings to discuss work status. 6. My superior focuses on opportunities and not problems. Grand Mean

Weighted Mean
3.75

Interpretation
To a great extent

To a moderate extent 3.45 To a moderate extent 3.20 To a moderate extent 3.35 To a moderate extent 3.45 To a moderate extent 3.20 3.40 To a moderate extent

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The statements showing the coaching leadership style are numbers two, six, 10, 14, 18, and 22. Here, most of the service crew members gave a to a moderate extent evaluation. The leader spends time listening and advising the employees and helping the employees when appropriate. The highest percentage was registered in that statement regarding when the manager holds periodic meetings and support the companys mission and policies. Table 7 Delegating as Leadership Style

Descriptions 1. My superior provides clear responsibilities and allows staff to decide how to accomplish them. 2. My superior discusses the organizations strategic mission with staff. 3. My superior asks staff to think ahead and develop long-term plans for their areas. 4. My superior emphasizes the importance of quality but allows staff to establish the control standards. 5. My superior expects staff to create their own goals and objectives and submit them to him/her in finished form. 6. My superior ensures that information systems are timely and accurate and that information is fed directly to staff. Grand Mean

Weighted Mean 3.35

Interpretation To a moderate extent

To a moderate extent 3.45 To a moderate extent 3.20 To a great extent 3.75

To a moderate extent 3.35

To a moderate extent 3.45

3.43

To a moderate extent

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The statements under the delegating leadership style are the following: four, eight, 12, 16, 20, and 24. Usually, the leader or

manager gives the employees the freedom to do their job with lesser supervision. The highest score is 3.75 or statement 4 which is; the superior gives the importance of quality to the staff and allows them to have their control standards.

Table 8 Directing as Leadership Style

Descriptions 1. My superior checks work on a regular basis to assess our progress and learning. 2. My superior makes sure we are aware of, and understand, all company policies and procedures. 3. My superior demonstrates each task involved in doing the job. 4. My superior sets down performance standards for each aspect of my staffs job. 5. My superior has staff report back after completing each step of their work. 6. My superior tries to assign work in small, easily controlled units. Grand Mean

Weighted Mean 3.55

Interpretation To a great extent

To a great extent 3.55

To a moderate extent 3.40 To a moderate extent 3.45 To a great extent 3.70 To a great extent 3.90 3.59 To a great extent

The statements with the directing leadership style are numbers one, five, nine, 13, 17, and 21. Most of the statements have a mean interpretation of moderate to great extent. The manager takes a

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directive role, telling the subordinates on what to do.

Said leader

provides a working structure, both for the job and in terms of how the employees are controlled.

Table 9 Leadership Styles of Managers

Leadership Style Supporting Coaching Delegating Directing

Weighted Mean 3.47 3.40 3.43 3.59

Interpretation To a moderate extent To moderate extent To a moderate extent To a great extent

Overall, the service crew members perceived the leadership style of the managers both for Jollibee and McDonalds as directing, with a 3.59 weighted mean or to a great extent. The service crew members believe that the managers show this particular leadership style in supervising them. They believe that the managers have a hands-on approach when it comes to supervision. Their style is telling or directing style in a way that they demonstrate the task and they tell what to do in each of these tasks.

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Table 10 Organizational Commitment of Service Crews I Descriptions n

1. I feel strongly about improving the organizations services. 2. I enjoy discussing quality related issues with my co-employees. 3. I gain a personal sense of accomplishment in providing quality service to the customers. 4. I completely understand the reason for providing quality service to the customers. 5. Providing high quality service should be the number one priority of the organization. 6. I am willing to exert all my efforts in order to provide the highest quality service to the customers. 7. I am expected to provide high quality service to customers. 8. The way I feel about quality service is similar to the way the organization feels about quality. 9. I really care about the quality of services of my company. 10. I exert beyond the normal efforts I put on the job. 11. I always make sure that I provide quality service to the customers. 12. I feel that I am responsible in the delivery of quality service to the customers. 13. I put a lot of effort and dedication to my job in ensuring quality service.. 14. I always consult my superiors on how to deliver quality service at all times. 15. I also encourage my co-employees to provide quality service. 16. I finish my work with quality. 17. I believe that quality service delivery is part of my work life. 18. The standard that the company sets for quality service delivery is achievable. Weighted Mean 3.55 3.55 3.40 Interpretation To a great extent To a great extent To a moderate extent

t e r m s

3.90

To a great extent

3.75

To a great extent

3.55

To a great extent

3.55 3.40

To a great extent To a moderate extent

3.90 3.75 3.55 3.55 3.40 3.55 3.55 3.40 3.55 3.55

To a great extent To a great extent To a great extent To a great extent To a moderate extent To a great extent To a great extent To a moderate extent To a great extent To a great extent

o f

o r g

19. The company can always rely on me in terms of providing quality service. 20. I believe that the customers expect a quality service delivery from me. 21. Quality service delivery is already part of my system. n 22. I am happy to render quality service to customers. 23. I am open to any task that will provide I quality service to customers. Grand Mean

3.40 3.55 3.55 3.40 3.55 3.56

To a moderate extent To a great extent To a great extent To a moderate extent To a great extent To a great extent

84

In terms of organizational commitment, the overall or grand mean of 3.56 is to a great extent, which means that the service crew members are committed to quality, particularly in statement nine wherein the service crews care much about the quality of service the branch offers. This is also true for statement four wherein the service crew members feel that providing quality service is a priority of the company. Several of these statements attested that provision of quality service is a goal of each service crew. Most of the crew members extend services beyond the normal working hours. They exert their efforts beyond what is expected of them. This is seen in statement 10. In return, they also believe that customers expect quality service from them. In testing the hypothesis regarding the significant relationship between the leadership style and the organizational commitment to service quality as perceived by the service crew members, the Pearson Correlation coefficient was used.

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Table 11 Relationship between Leadership Style and Organizational Commitment

Correlations Leadership Organizational Style Commitment Leadership Pearson Correlation 1 0.66 Style Sig. (2-tailed) . 0.00 N 30 30 Organizational Pearson Correlation 0.66 1 Commitment Sig. (2-tailed) 0.00 . N 30 30 ** Correlation is significant at the 0.01 level (2-tailed).

There is a moderate relationship between leadership style and organizational commitment. Pearson r is valued at 0.66 or moderate significant at 0.01 significant level. Therefore, the null hypothesis is rejected. The sign was also positive which means that there is a direct relationship between leadership style and organizational commitment.

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Chapter 5
SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

The researcher conducted a study on the leadership styles of managers as basis for organizational commitment to service quality of service crew members in two fastfood restaurants, namely: Jollibee and McDonalds in Las Pias City.

Summary of Findings

This study sought answers to the following questions:

1. What is the demographic profile of the respondents in terms of age, gender, sex, educational attainment, and number of years of experience? 2. What are the leadership styles of managers as perceived by their service crew members of Jollibee and McDonalds outlets at Las Pias City? 3. What are the perceived organizational commitment of service crew members?

87

4. Is there a significant relationship between the leadership style of managers and the organizational commitment as perceived by the service crews?

The hypothesis was expressed in this manner:

There is no

significant relationship between the leadership style of managers and the organizational commitment as perceived by the service crews of Jollibee and McDonalds at Las Pias City.

The researcher used the quantitative research design in the form of a descriptive research design. The study used the Pearson

correlation coefficient to test the hypothesis.

The researcher employed a structured questionnaire on the leadership style and organizational commitment of employees. The

leadership style was adapted from the leadership style model of Hersey and Blanchards theory of leadership.

The participants of the study included 30 service crews, 5 from each outlet of Jollibee and McDonalds.

The study revealed that the perceived leadership style of the service crews is directing, with an overall grand mean interpretation of

88

to a great extent.

In terms of organizational commitment, the

respondents showed also an overall mean of to a great extent.

Based on Table 2 in Chapter 4, most of the service crew members for both Jollibee and McDonalds have ages between 21-23 years old, or 40% of the population, followed by those with ages 18-20 years old, or 36.67% of the population. There are seven service crew members with 24-26 years old, or 23.33% of the population.

Based on Table 3 in Chapter 4, majority of the service crew members are female, or 56.67% of the population. The male service crew members consist of 43.33% of the population. Based on Table 4 in Chapter 4, there are 12 service crew members who did not finish their studies, or 40% of the population, while eight, or 26.67% of the same are college graduates. There are 10 service crew members who are currently studying. Based on the questionnaire, and Table 5 in Chapter 4, numbers three, seven, 11, 15, 19, and 23 connote a supporting leadership style. In the supporting style, as affirmed in the findings, statements three and four show that the crew members perceived the managers as not making abrupt conclusions on premature ideas.

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As per Table 6 of the preceding chapter, the statements showing the coaching leadership style are numbers two, six, 10, 14, 18, and 22. Most of the service crew members answered the statements under this particular leadership style as to a moderate extent. Table 7 in Chapter 4 tells one that the statements under the delegating leadership style are the following: four, eight, 12, 16, 20, and 24. Usually, the leader or manager gives the employees the

freedom to do their job with lesser supervision. The highest score is 3.75 or statement 4 which is; the superior gives the importance of quality to the staff and allows them to have their control standards.

Table 8 in Chapter 4 plainly shows that the statements with the directing leadership style are numbers one, five, nine, 13, 17, and 21. Most of the statements have a mean interpretation of moderate to great extent. The manager takes a directive role, t elling the

subordinates on what to do. Such leader provides a working structure, for the job and in terms of how the employees are controlled.

Overall, as per Table 9 in Chapter 4, the service crew members perceived the leadership style of the managers both for Jollibee and McDonalds as directing, with a 3.59 weighted mean or to a great extent

90

In terms of organizational commitment, according to Table 10 in Chapter 4, the overall or grand mean of 3.56 is to a great extent, which means that the service crew members are committed to quality, particularly in statement nine wherein the service crews care much about the quality of service the branch offers. This is also true for statement four wherein the service crew members feel that providing quality service is a priority of the company. As per Table 11 in Chapter 4, there is a moderate relationship between leadership style and organizational commitment. Pearson r is valued at 0.66 or moderate significant at 0.01 significant level. Therefore, the null hypothesis is rejected. The sign was positive which means that there is a direct relationship between leadership style and organizational commitment.

Conclusions

The study reveals that the leadership style of managers as perceived by the service crews is directing. Whereas in terms of organizational commitment, the employees perceive theirs as to a great extent, meaning they value quality service delivery to customers.

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In relating the leadership style and organizational commitment, a moderate correlation exists. The directing leadership leads to a

moderate level of organizational commitment.

Recommendations

Considering the foregoing, the following are recommended:

Managers in service-oriented establishments should always strive to help their employees provide quality service delivery to customers. For fastfood restaurants, additional studies should be done with more participants, with researches done on a wider scale to further confirm if directing leadership style is really the preferred leadership style of service crews.

Further studies should include a self-assessment of the leadership style/s of these managers, and compare these assessments with the perceptions of the service crews. Additional studies on

organizational commitment and job satisfaction of employees rendering quality service delivery should be evaluated.

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It is also recommended that managers become more aware of their manner of supervision and motivation so that their companies will be assured that quality service delivery become a priority of their employees. functions. They should become role models in their respective

Further studies on leadership styles can be done by the establishments subject of this study and other service-oriented organizations. Indeed, as per the Hershey-Blanchard Model of

Leadership, four types of leadership styles are apropos in the same and which can be enhanced to adapt to changing times; thus:

Directing.

Here, the leader provides clear instructions and a

specific direction. Also called the telling style, it needs to be refined to conform to the growing democratic consciousness of employees wherein they have a voice in decision-making.

Coaching. The leader encourages two-way communication and helps build confidence and motivation on the part of the employee although the leader still has responsibility and controls decision-making; truly, this promotes a scenario of developing self-esteem without compromising quality.

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Supporting.

With this style, the leader and followers share

decision-making and no longer need or expect the relationship to be directive. This maintains teamwork which leads to satisfying the social needs of employees.

Delegating. This style is fit for leaders whose subordinates are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Verily, this promotes employees self-esteem which ultimately translates to quality service.

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REFERENCES

A. Books Cabanda, E. (2008). Performance Management: Applications of data envelopment analysis in the Philippine setting. Manila: University of Santo Tomas Press. Rollinson, D. (2005). Organisational Behaviour and Analysis: An Integrated Approach. Harlow, Essex: Pearson Education Limited. Young, F. (2006). Organization development made simple. Quezon City: Abiva Publishing.

B. Journals and Periodicals Alano, C. (2008). The top 10 fastfood restaurants. The Philippine Star, July 17, 2008. Chen, J. & Silverstone, M. (2005). Leadership effectiveness, leadership style and employee-readiness. Leadership and Organization Development Journal. Grizinic, J. (2007). Concepts of service quality measurement in the hotel industry. University Jurje Dobrile. Wu, Tsai, Fey & Wu (2006). A study of the relationship between managers leadership style and organizational commitment in Taiwans international tourist hotels. Asian Journal of Management and Humanity Sciences. Zamora, M. (2006). Building a high performance culture. A speech delivered for John Clements Corporation planning session on December 20, 2006.

95

C. Electronic Sources and Websites

Antenor-Cruz, S. (2010). Effective management talent that makes business sense. Retrieved July 29, 2011 at www.watsonwyatt.com. Gosling, B., Marturano, A. & Dennison, P. (2003). A review of leadership theory and competency frameworks. Retrieved August 9, 2011 at www.leadership-studies.com. Riggs, M. & Hughey, A. (2011). Competing values in the culinary arts and hospitality industry. Industry and Higher Education. www.bis.com www.digitalcommon.wku.edu www.dirp4.pids.gov.ph www.etd.aau.edu www.eurojournals.com www.flexiblepartners.com www.freepatentsonline.com www.help4fastfood.wordpress.com www.highbeam.com www.hrcak.scre.hr www.jollibee.com.ph www.journal-archives14webs.com www.leadingtoday.org

96

www.mcdonaldscollector.multiply.com

www.mospace.umsystem.edu www.mubs.ac.ug www.ncsu.edu www.northgeorgia.edu www.pubs.surrey.ac.uk www.studymode.com www.timothy-judge.com www.ukessays.com www.unpanl.un.org www.upetd.up.ac.za

D. Theses and Dissertations Al-Ababneh, M. & Lockwood, A. (2006). The influence of managerial leadership style on employee job satisfaction in Jordanian resort hotels. Cornell University Press. Calleja, M. (2006). The relationship of human resource management roles and practices and organization effectiveness. Ateneo de Manila University, Philippines. Brown, B. (2003). Employees organizational commitment and their perception of relations-oriented and task-oriented leadership behaviors. Virginia Polytechnic Institute and State University.

97

Hartline, J. & Keith (2009). The effects of leadership style on hotel employeescommitment to service quality. Cornell University. Joe, O. (2006). Strategic human resource management, small and medium-sized enterprises and strategic partnership capability. Slipping Rock University of Pennsylvania, USA. Liu, Y., Combs, J., Hall, A. & Ketchen, D. (2006). How much do high performance work practices matter: A meta-analysis of their effects on organizational performance. Florida State University, USA. Tang, R., Restubog, S., & Cayayan, P (2007). Investigating the relationship between psychological contract breach and civic virtue behavior. De La Salle College of Saint Benilde, University of Queensland, Australia and PAREFWestbridge School.

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APPENDIX A Sample Letter Request to Conduct Survey

27 February 2013 Humprey Basadre Store Manager McDonalds SM SouthMall, Las Pinas

Sir: Greetings! I am currently enrolled in Thesis Writing as a final requirement for the degree Corporate Executive Masters in Business Administration (CEMBA) at the University of Perpetual Help-System Dalta, Las Pinas (UPHSD). My research problem is entitled Leadership Styles of Managers in Selected Fastfood Restaurants in Las Pinas City: Basis for Organizational Commitment to Quality Service. The focus of the study is to craft a model for management of fastfood chains in Las PInas toward realizing and maintaining quality services. In line with the objective of the study, I would like to seek your assistance that I may be allowed to conduct the attached survey questionnaire so that I can gather information on the management practices of fastfood chains in Las Pinas. Your favorable response will help me finish my study at the soonest time possible. Respectfully yours, (sgd.) Sharon C. Borsigue CEMBA Candidate

Recommending Approval: (sgd.) Atty. Irineo F. Martinez, Jr. Dean, UPHSD Graduate School

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APPENDIX B Leadership Style Questionnaire

The following statements will help you assess the leadership style of your superiors. Please use the following marking scale: 1 to almost no extent 2 to a slight extent 3 to a moderate extent 4 to a great extent 5 to a very great extent Try to answer the questions fairly without rushing your response. 1. My superior checks work on a regular basis to assess our progress and learning. My superior holds periodic meetings to show support for company policy and mission. My superior appoints staff into task groups to action policies affecting us. My superior provides clear responsibilities and allows staff to decide how to accomplish them. My superior makes sure we are aware of, and understand, all company policies and procedures. My superior recognizes the staffs achievements with encouragement and support. My superior discusses any organizational or policy changes with the staff prior to taking action. My superior discusses the organizations strategic mission with the staff. My superior demonstrates each task involved in doing the job. My superior meets with the staff regularly to discuss their needs. 1 2 3 4 5

2.

1 2 3 4 5

3.

1 2 3 4 5

4.

1 2 3 4 5

5.

1 2 3 4 5

6.

1 2 3 4 5

7.

1 2 3 4 5

8.

1 2 3 4 5

9.

1 2 3 4 5

10.

1 2 3 4 5

100
11. My superior avoids making judgments or premature evaluation of ideas or suggestions. My superior asks the staff to think ahead and develop long-term plans for their areas. My superior sets down performance standards for each aspect of my staffs job. My superior explains the benefits of achieving their work goals to the staff. My superior rotates the role of team briefer among the staff. My superior emphasizes the importance of quality but allows staff to establish the control standards. My superior has staff report back to me after completing each step of their work. My superior holds regular meetings to discuss work status. My superior provides staff with the time and resources to pursue their own developmental objectives. My superior expects staff to create their own goals and objectives and submit them to him/her in finished form. My superior tries to assign work in small, easily controlled units. My superior focuses on opportunities and not problems. My superior avoids evaluating problems and concerns as they are discussed. My superior ensures that information systems are timely and accurate and that information is fed directly to staff. 1 2 3 4 5

12.

1 2 3 4 5

13.

1 2 3 4 5

14.

1 2 3 4 5

15.

1 2 3 4 5

16.

1 2 3 4 5

17.

1 2 3 4 5

18.

1 2 3 4 5

19.

1 2 3 4 5

20.

1 2 3 4 5

21.

1 2 3 4 5

22.

1 2 3 4 5

23.

1 2 3 4 5

24.

1 2 3 4 5

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APPENDIX C Organizational Commitment Questionnaire

The following statements will help you assess your commitment to service quality. Please use the following marking scale: 1 to almost no extent 2 to a slight extent 3 to a moderate extent 4 to a great extent 5 to a very great extent Try to answer the questions fairly without rushing your response. 1. I feel strongly about improving the organizations services. I enjoy discussing quality related issues with my co-employees. I gain a personal sense of accomplishment in providing quality service to the customers. I completely understand the reason for providing quality service to the customers. Providing high quality service should be the number one priority of the organization. I am willing to exert all my efforts in order to provide the highest quality service to the customers. I am expected to provide high quality service to customers. The way I feel about quality service to customers. I really care about the quality of services of my company. I exert beyond the normal efforts I put on the job. 1 2 3 4 5

2.

1 2 3 4 5

3.

1 2 3 4 5

4.

1 2 3 4 5

5.

1 2 3 4 5

6.

1 2 3 4 5

7.

1 2 3 4 5

8.

1 2 3 4 5

9.

1 2 3 4 5

10.

1 2 3 4 5

102
11. I always make sure that I provide quality service to the customers. I feel that I am responsible in the delivery of quality service to the customers. I put a lot of effort and dedication to my job in ensuring quality service. I always consult my superiors on how to deliver quality service at all times. I also encourage my co-employees to provide quality service. I finish my work with quality. I believe that quality service delivery is part of my work life. The standard that the company sets for quality service delivery is achievable. The company can always rely on me in terms of providing quality service. I believe that the customers expect quality service delivery from me. Quality service delivery is already part of my system. I am happy to render quality service to customers. I am open to any task that will provide quality service to customers. 1 2 3 4 5

12.

1 2 3 4 5

13.

1 2 3 4 5

14.

1 2 3 4 5

15.

1 2 3 4 5

16. 17.

1 2 3 4 5 1 2 3 4 5

18.

1 2 3 4 5

19.

1 2 3 4 5

20.

1 2 3 4 5

21.

1 2 3 4 5

22.

1 2 3 4 5

23.

1 2 3 4 5

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APPENDIX D Certification of Statistical Treatment

CERTIFICATION OF STATISTICAL TREATMENT This is to certify that the Masters Thesis entitled, Leadership Styles of Managers in Selected Fastfood Restaurants in Las Pinas City: Basis for Organizational Commitment to Quality Service of Ms. Sharon C. Borsigue was statistically analyzed by the undersigned.

(sgd.) Dr. Cynthia A. Zarate Statistician

Noted: (sgd.) Atty. Irineo F. Martinez, Jr, PhD Dean

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APPENDIX E Certification of Editing

CERTIFICATION OF EDITING This is to certify that the Masters Thesis entitled, Leadership Styles of Managers in Selected Fastfood Restaurants in Las Pinas City: Basis for Organizational Commitment to Quality Service of Ms. Sharon C. Borsigue was edited/read by the undersigned.

(sgd.) Francisco A. Rivas, LlB Editor/Reader

Noted: (sgd.) Atty. Irineo F. Martinez, Jr, PhD Dean

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CURRICULUM VITAE

Name: Address: Gender: Date of Birth: Civil Status: Religion: Present Position: Office Address:

Sharon C. Borsigue Blk. 35, Lot 32, San Marco St. Moonwalk Village, Las Pinas Female 4 July 1980 Single Roman Catholic TESDA Trainer, TESDA Assessor Pulang Lupa I, Las Pinas

EDUCATIONAL BACKGROUND

Post Graduate:

Corporate Executive Master in Business Administration (CEMBA) University of Perpetual Help System DALTA Las Pinas March 2013 Bachelor of Science major in Entrepreneurship Dr. Filemon C. Aguilar Memorial College (DFCAM) Las Pinas April 2002

Tertiary:

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EXAMINATIONS PASSED National TVET Trainors Level 1 & 2 (TQ1,2) National TVET Assessors Level 1 & 2 (AQ1,2) GMAW & GTAW NC II License 2012 Housekeeping NC II and III Licensed December 1, 2011, 2013 WORK EXPERIENCES Licensed Welder Shielded Metal Arc Welding NC2 Las Pias Manpower Training Center P. Diego Cera, Pulang Lupa I, Las Pias City October 1, 2009 - Present IT Technical Support (Help Desk) & Printing Billings Manulife Philippines 16 F LKG Tower #6801 Ayala Avenue, 1226 Makati City November 26, 2007 - April 2009 Finance Analyst Clerk Cosmos Bottling Corporation SO Cavite # 349 Tirona Hi-way, Habay Bacoor Cavite February 19 - July 2, 2007 Accounting Clerk Aeroplus Multi-Services Corporation #41 V. Concepcion corner Elizalde Sts. BF West Executive Village, Las Pias City September 14, 2006 - January 15, 2007 Documentation Clerk Puregold Price Club, Inc. - Las Pias October 19, 2005 - February 18, 2006

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Toll Teller PNCC Skyway Corporation Doa Soledad Ave., Better Living, Paraaque City May 31 - October 31, 2004 Cashier Alabang Supermarket Corporation ATC- Muntinlupa City June 23 - December 7, 2003 Cashier Supervalue Inc., Southmall Las Pias June 21 - November 16, 2001

SEMINARS/TRAININGS ATTENDED National TVET Trainors Level 1 & 2 (TQ1,2) National TVET Assessors Level 1 & 2 (AQ1,2) GMAW & GTAW NC II License 2012 Housekeeping NC II, III (Licensed) December 1, 2011, 2013 TESDA Competency Assessors Association MPLTP District TESDA Womens Center Tandang Sora Hall,Taguig City August 16, 2011 Massage Therapy Las Pias Manpower Training Center P. Diego Cera, Pulang Lupa I Las Pias City July 1 to December 17, 2010 Completed 420 hours Certificate No. 10040202010661 Trainers Methodology (TM1), Assessors Methodology (AM1) ISHRM, Habay, Bacoor Cavite June 2, 2010

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Shielded Metal Arc Welding NC2 Asian Tecnological College (ATC) Putatan Muntinlupa City May 8 to June 27, 2009 Completed 304 hours Certificate No. 0913060244918 Philippine Science & Technology Centers (PSTC) Alabang November 15, 1997 Leadership Training, Christian Living, Campus Journalism On Drug Abuse Prevention and Moral Values Seminar Las Pias National High School, Golden Acres Annex October 20, 1997