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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
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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
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basis for the organizational commitment of the service crews to service
quality in selected fastfood establishments. These restaurants are
Jollibee and McDonalds located in Las Pinas.
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
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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.
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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.
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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.
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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
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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.
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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.
JollibeeNo. 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 Age;
1.2 Gender;
1.3 Sex;
1.4 Educational Attainment; and
1.5 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
Figure 1.Research Paradigm of the Study.
PROFILE
LEADERSHIP STYLES
OF MANAGERS
ORGANIZATIONAL
COMMITMENT TO
QUALITY SERVICE
SURVEY OF LEADERSHIP
STYLES OF SELECTED
FASTFOODRESTAURANTS
IN LAS PINAS CITY
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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 theirsubordinates 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,
other employees are not included. The leadership styles were
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 the 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 and members
expectations and perceptions. It is the ability of an individual to have
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power that focuses on how to establish directions in the organization.
From an organizational point of view, Schermerhorn (1999 cited in Al-
Ababneh 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 Al-
Ababneh 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,
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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 Al-
Ababneh 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
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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 non-
effectiveness 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
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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
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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. A leader can also use a
combination of both types.
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.
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Hater and Bass (1988, cited in Brown, 2003, www.timothy-
judge.com, retrieved on February 18, 2013) compared the effects of
transformational and transactional leadership behaviors on
subordinates who worked for top-performing managers and ordinary-
performing managers. There were 171 subordinates in the top-
performing group and 141 subordinates in the ordinary-performing
group. A comparison of these two groups reveals that there are
stronger 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
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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
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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.
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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. The first approach is the
technical and product-oriented aspect. 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
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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 the 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.
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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. In this way, all members of the team will be
accountable. 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.
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The management style adopted by team leaders at McDonalds
is to create outlets which are fun places to work. This is called "team-
building." 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)
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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
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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 high-
performing teams and individuals at McDonalds. Team leaders were
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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. A
committed and motivated team is always successful. Larson and
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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.
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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,
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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
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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
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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
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development, (6) resources, (7) organizational support, and (8) rewards
for team success (Harvey, Millett, and Smith, 1998).
Team leaders at McDonalds should also identify leadership
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 self-
observation/self-evaluation so that the team can gather the information
required to monitor and evaluate its performance; (b) encouraging self-
goal 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 elf-
critical and discourages poor team performance, (e) encouraging self-
expectation 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
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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,
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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
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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 goal-
orientated; 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
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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.
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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
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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
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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
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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.
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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