Sharon c. Borsigue

7/22/2019 Sharon c. Borsigue

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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 fastfood 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

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Sharon c. Borsigue