Review of Related Literature and Studies

CHAPTER I THE PROBLEM AND ITS BACKGROUND INTRODUCTION The success of to a greater extent agile- fodder chains in Metro manila paper is largely callable to the eveningt, that they argon able to deliver the e fictional character of sustainers expected of them of the stack who lead hurried lives. These slew strainmen, executives, ordinary employees and imprinters, students and new-made(prenominal)s, compute on these fast food chains for their food sustenance to keep them going throughout the day. Thus volume of customers turned to these establishments everyday, that keeps service crew on their toes to attend to them especially during top hours.Customers rapture however, depends on the efficiency of their service crew in meeting the demands of the many customers they adjudge to attend to everyday. No where is the importance of military psychenel resource clear exhibited than in fast food chains. According to Martines, people constitute an brass instruments most impor tant and vital doer in its success or failure. By and large, enchantment the human factor rules both its input and output, it is overly its most signifi evictt input and even output in many instances.Through and by men, the otherwises m aney, machines materials, methods and marketplaces argon acquired and utilized. The quality and utilization of the latter argon almost always affected by decisions about and by human resources. Indeed, the accomplishment of the goals of an governance depends upon the availableness and utilization of all these ingredients the fundamental interaction of which argon people ca employ. The acquisition, utilization and teaching of financial, material, technological and marked resources which whitethorn be exhaustible are helplesss on human resources.If the latter is available and capable, the other factors can be of great employ to the fundamental law. It is through people that they can be either harnessed and developed or dissipated and lost. Man does or undoes what exists, man creates or by passes opportunities and scenarios. Hence, people power is the most significant and potent factor of all the resources available to an formation. An organization may start with zero funding, but with creative, resourceful, hard weeing and h peerlessnessst people, it becomes financially available has really just begun.The fact that this subordinates can do the personal line of credit rise up does non mean that they necessary leave behind. thither is always the possibility that the quality and the quantity of their exercise may fall short of targeted objectives. This implies that chisel enjoyments and employees esprit de corps is dependent on the lead appearance of the conductor. From these perspective, the demand adopts the concept that attractorship contributes significantly to the success or failure of the organization, by its make on the esprit de corps and argument satisfaction. STATEMENT OF THE PROBLEMThe focus o f the lease is to de marginined the effects of the attractership style of the music directors of the fast food chains on the morale and mull satisfactions of the service crew. Specifically, it attempt to answer the following questions 1. What is the profile of the service crew in terms of a. Sex b. Age c. Civil Status d. Educational Attainment e. Experience (As service crew) 2. What is the leadinghip style of the managers of fast food chain as perceived by the service crew? 3. What is the direct or degree of project satisfaction of the service crews? 4.What is the degree of line of returns satisfaction among the service crews? 5. Does leadership style of managers affect the morale and theorise satisfaction of the service crews? ASSUMPTIONS The battlefield and the difficultys advanced herein are based on the following premises 1. Managers of the three fast food encounter more than or less similar leadership style. 2. The morale and hypothesise satisfaction are partly influenced or enhanced by leadership style of the managers. 3. Managers do non adopt a superstar leadership style. HYPOTHESES In likeness with the problems and assumptions advanced in the conceive, the following hypotheses are tested 1.Managers has no single or specific leadership style The service crew are the human resources of the fast food chains o who rest the success of these organization through customers satisfaction. In relation to this, the foregoing looks on the effects of managers leadership on the morale and demarcation satisfaction of their service crew of leading fast food chains (Jollibee, McDonalds and Wendys) in Metro Manila. These three fast food chains, Jollibee, McDonalds and Wendys are among the most success fully operated fast food chains in Metro Manila.They employ hundreds of service crews managed and supervise by able managers designed in their difference branches. In determining the effects of these managers leadership style on the morale an job satis faction, the airfield is under taking from the employees (service crews) academic degree of image. CONCEPTUAL FRAMEWORK According to Lorenzana, even if the organization has been properly staffed and workers maintain been trained to the point where they are suite capable of doing a good job, the managers work as a director (and leader) of people. The leadership style of mangers has no effect on the morale and job satisfaction of the service crews.SCOPE AND DELIMITATION OF THE STUDY The take up limited its investigation to 120 service crews of the three leading fast food chains in Metro Manila Jollibee, McDonalds and Wendys. it specifically pore on the determination of the effects of the managers leadership style on the morale and job satisfaction of the service crews. The matters major limitation is the fact that it does not attempt to make a comprehensive evaluation of the other factors that may affect job satisfaction and morale like working conditions, put up and son on.Th e cartoon also does not make an attempt to compare the managers leadership styles between the three fast food chains. Thus, the study is normally focused rather than specifically focused, at least on the aspects of leadership style effects on the morale and job satisfaction of the subjects. logical implication OF THE STUDY the study is deemed significant to managers, as it bring forth through its findings, the vital perspective on the relationship between leadership style and job satisfaction and morale among their subordinates.These may serve as bases for formulating a framework of management and leadership style appropriate in local setting sustain not altogether in bringing about sound management practices, but in enhancing greater efficiency and productivity among Filipino employees and workers as a dissolver of better employee- management relationship. DEFINITION OF TERMS The following are some(prenominal) of the terms that are given their operational definitions agree to the context they are used in the study Age It refers to the chronological are of the reactents as expressed in terms of years.Autocratic Leadership it means the type of leadership where the leader tells and cephalalgias or threatens for compliances authoritarian and despotic. Civil Status it refers to the status of macrocosm single, married, widowed, divorced or separated. Democratic Leadership Means the leadership that is characterized by participant decision- do and consultative assemblies to enforce majority decision of the group. Educational Attainment the term means the highschoolest education attained by the respondents. Experience as used in the study refers to the number of years the respondents worked as service crew, expressed in years.Laissez faire It is a free- reign leadership, characterized by high people orientation and myopic project orientation. Leadership as used in the study refers to the mien of an man-to-man who is involved in directing group activities. Leadership style It is the pattern of expression designed to integrate organisational and personal goals and interests in the pursuit of objectives. As used in the study it refers on the behavior adopt by an unmarried in directing group activities. Morale means the state of mind with reference to confidence, satisfaction and cheerfulness. gladness particularly job satisfaction is a general towards ones job the difference between the amount of rewards the workers pay back and the amount they believe they should receive. Sex Refers to the respondents gender attributes, whether female or male. CHAPTER II REVIEW OF RELATED LITERATURE In this chapter, the researcher presents a resume of literature that nonplus entailment to the present study. On Leadership According to Plunkett and Attner, in interacting with employees in the work environment, a manager must play four basic leadership partings educator, councilor, judge and spokesperson.All managers must carry thr ough the leadership role of educator. Managers fulfill this role by teaching employees job skills as fountainhead as acceptable behavior and organizational entertains. Managers accomplish much of behavioral education through the execution of their own daily work. Their work habits, attitudes and behavior serve as a role model to all who observe them. In addition to providing education, managers are ultimately responsible for the formal teach of their employees. They may provide this skills train directly or ar be adrift for it to be provided by other.Regardless of who ultimately performs the training, the managers should be knowledgeable about training principles learning theory, and training techniques in order to perform this role. thither are many opportunities for fast food chain managers to assume this role. Most of them educates their subordinates on company operations and policies. A certify leadership role of a manager is councilor. This role involves listening, giving a dvice and preventing and solving employees problem. In performing this role, managers are fulfilling deuce expectations of the employees 1. Awareness and botheration for the psyche employee and . Assistance in solving a problem. The counselor role does not mean that the manager is expected to solve all the employees problem, but it does mean providing help in recognizing the basic problem and in searching for potential solutions. Fast food managers a good deal assume the role as adviser or counselor. They run advice on their subordinates on how they can effectively do their tasks, and on work related problems. Playing the leadership role of judge involves appraising subordinates works enforcing policies, procedures, and regulations, remission disputes, and dispensing justice.Appraising or evaluating performance requires a knowledge of the standards that are used to measure output. The enforcing of policies, procedures, and regulations is tied to communication and to training. People should be told, and shown what limits and guidelines exist and how these apply to their specific situations. The function of settling disputes requires the exercise of tact and concern for resolution of conflicts. Dispensing justice entails giving credit and rewards, as well as appropriate discipline.Managers act as spokespersons for subordinates when they relay their suggestions, concern and points of view to higher authorities. Doing something about subordinates problems may mean going to bat for them on a higher management level. It may mean that the manager will make up to fight for changes to improve procedures, morale and working conditions. In performing this leadership role a manger must be willing to cook up a subordinates view even when she or he disagrees with it. In pursuing these leadership roles, the managers may adopt one or combining of the following leadership styles 1.Democratic type This type of leader is characterized by his concern for the achievement of goals set with the group. He is sensitive and understand the affects of the individuals and groups in spite of appearance the organization and helps them to fulfill their needs as well as the functions of the group. He maximizes the use of communication and promotes open inquires, discussions and disagreements. 2. Autocratic or Dictatorial type This type of leader uses authority and title to hide certain shorting because he feels insecure. He is domineering toward staff members and co-workers but submissive towards superior officers.The autocratic leader is rigid and reluctant to delegate authority or to permit staffs subordinates to participate in policy and decision- making matters. 3. Laissez- Faire Type This leader gives complete freedom to group or individual decisions with the minimum of leader participation or direction. This type of leadership merely supplies materials and remains apart from the group and participates only when require. He makes no attempt to treasu re or regulate the members of the group of their progress towards achieving their goals and objectives.The laissez faire type behavior is premised on the touch sensation that the members of the group posses the ability to solve their problems and to determine their goals. Regardless of the leadership style that a manager applies, he or she is important in the organization. The success of an organization will largely depend on the kind of leader the organization has. With all the factors present in a no organization, the success or failure of any organization, whether giving medicational, business,civil, social political, whether service or profit- orientated, will largely depend on the kind of eader and the people in the organization. In the study about leadership styles and their development, leadership theories were formulated. Fiedler holds that the most appropriate style of leadership for a manager depends on the situation in which a managers works The contingency model which e developed shows that the effectiveness of a leader is determined by the interaction of the managers orientation (task or employee) with three situational variables leader- member relationships, task bodily structure and leader position power. Leader- member refers to the degree to which the leader is or feels accepted by the group.It is heedful by the degree of respect, confidence, and trust the subordinates feel from good to poor. If the relationship is rated as good, the leader should be able to exercise influence over the subordinates easily. On the other hand, if in that respect is friction or distrust, the manager may support to resort to favors to get performance. Task structure concerns the nature of the subordinates job or task. If reflects the degree of structure in the job a structured job would be routine in nature with prescribed dish upes. An example would be the position of file clerk.An formless job would have complexity and variety, and room for creativity. Leader position power describes the organizational power has from which the individual manager operates. The path- goal theory of leadership is bear on with the ways in which a leader can influence a subordinates motivation, goals, and attempts at achievement. It suggests that a leadership style is effective or ineffective on the basis on how the leader influences the perceptions of 1. Work goals or rewards of subordinates 2. Path (behavior) that lead to successful goal accomplishment.According to Jose and Micheal, subordinates are motivated by a leaders behavior. This behavior influences both goal attractiveness and the paths available to knock over the goals. Their theory contains two propositions concerning leaders behavior 1. Leader behavior is acceptable and satisfying to subordinates to the consummation that they view much(prenominal) behavior as either an immediate source of satisfaction or an instrument to future satisfaction. 2. Leader behavior will increase subordin ates efforts if it cogitate satisfaction of their needs to effective performance, and is supportive of their efforts to achieve goals performance.The theory provides types of leadership behaviors based on the work needed. These are 1. Instrumental behavior It involves the homework supervise and task assignment aspect of leadership. Instrumental behavior can be used to increases an employees work effort or clarify outcomes. 2. Supportive Behavior It involves the employee oriented concern for the welfare and needs of subordinates. In addition, it includes creation of a warm, pleasant climate. 3. Participative Behavior It involves using subordinates ideas in decision making. A subordinates who operates independently and who has ability would respond favorably to this approach. . Achievement- Oriented Behavior This involves both developing a highly challenging climate for an employee and demanding good performance. These leadership behaviors are based on the situational factors. Ther e are two situation factors that influentce leadership behavior 1. The personal characteristic of the subordinates. 2. The environmental pressures and demands with which subordinates must cope to accomplish goals and satisfy personal needs. Personal characteristics of a subordinate include the persons ability, self- confidence, and needs.These elements described the performance level of the ability and the degree of confidence in performing the job. This factor of personal characteristic affects how subordinates view their leader and themselves. The stronger their abilities and beliefs in themselves, the less supervision they will tolerate from the boss. Environmental pressures include the influence on subordinates that hey cannot control but which affect their abilities to perform the tasks effectively. Co- workers, the tasks assigned, and the leaders exercise of power are examples of these influences.Co- workers who are not cooperating can influence job performance and minimize an employees perception of completing the job. On Morale Jucius, wrote that organizational cooperation and conflict are significantly affected by employee morale. Hence, in personnel management it is important to understand the meaning of morale, the theory of morale development and the factors of morale development. Simply stated, morale is a state of mind and spirit, affecting willingness to work, which in turn affects organizational and individual objectives. Morale may range from very high to very low.It is not an absolute but is subject to change, depending upon managements plans and practices. This simple definition emphasizes willingness to work. This is important, a person contented with ones lot may do only enough to get by. Another person works hard because of dissatisfaction and wants to achieve betterment. Good morale would scarecely be a condition of the former it could well be of the latter. Dissatisfaction of a group need not be a sign of poor morale when it is associat ed with a deserve to improve through cooperation with organizational goals. Dissatisfaction with management could however well e a sign of poor morale.Morale is, in essence, conditioned by a groups understanding of the relation between personal interests and company interests. Employees who conclude that their interest are being served fairly when they contribute to the organizations interests develop a favorable attitude of mind. Conversely, their attitude is poor when they perceive an unfair treatment of their interests. Essentially, wherefore, morale develops out of a mutual satisfaction of interests. In the case of employees, they understand that to gain their goals, they must help the company achieve its goals.And employees must also believe that the deal they get is fair in relation to what they and others contribute. If the interests of all parties to a group endeavor are in their respective minds, fairly served, their morale will be high. Morale development takes place, th erefore, through the process of successfully integrating interests. Immediately, good morale has some very important results for management and for employees. Management finds that subordinates are willing to follow their requests and commands with enthusiasm and respects. Indeed, work is do without the need of commands or supervision.This is a very pleasant condition for the executive who will find that employees will work hard in the face of difficulties. When trim time or holiday work is called ofr, the response will be quick and understanding. And most of all, employees openly show the attitude of respects for an confidence in their leaders which is so satisfying to the leaders themselves. Good morale has immediate effects upon employees too. They work with satisfaction and pleasure. The hours of work go by in an atmosphere of relaxed effort. energy seems to drag, the days are not empty and boring, and a feeling of insignificance is absent.It is in short good to work and in a ssociation with ones co- workers and ones superiors. Work as much as it can be is a pleasure and not a misery. These immediate effects cause some desirable ultimate effects. To management, there is higher output of better products at lower costs. And in turn, there will be more consistent, higher profits. To employee there are higher wages, more secure employment, and a higher standard of living. And to society in general, there are more goods and service obtained more effectively from the limited supply of resources. These effects do not all flow morale itself.Morale should not be looked upon as the only source of success. Even the silk hat employee cannot make bricks without straw. But the best employee can do much, much better gives the same materials that can the worker whose morale is low. It is now pertinent to note the factors which have an effect upon employee morale. As a broad statement, anything can do influence the attitude of employees, the factors are limitless. But p ractically speaking, morale is related to the following 1. Employee factors The quality of morale is definitely influenced by the type of employees.Understanding has significant effects upon morale. And understanding is dependent in part upon the ability of people to understand. If then, the ability of employees to understand comely explanations is low, management, try as it may, will not be able to get across its messages. Thus, in its hiring policies, a company should seek not only people who are capable of doing their jobs but also those who can grasp the logical relationship and rewards involved in group effort. The status and roles of employees have a rig upon the possibilities of morale development. Employees may be members of a union.In that case, they will invariably take on attitudes are reactions because of their membership. This does not mean that such attitudes will necessarily be negative. But it does mean that management will have to deal with a group which is not ea sy to convince of the views it considers correct. Even when not organized, lug may take on particular attitudes because of such things as labor- management history in a given fraternity or the manner in which labor looks upon itself in the factory. 2. Management Practices The most important group of factors affecting morale are those falling within the province of management.Few employees indeed would be aware of or disinterested in how management deal with such matters of pertinence to them as goals, policies, procedures and communications. Any of these subjects can have serious impact upon the morale of the employees. Any one of these areas has more than enough powder to blow upon the relations between labor and management. The behavior of executives is particularly significant as a morale factor. Some executives are autocratic in their attitude toward subordinates. Others imply a feeling that they are better that their subordinates that the latter are second class citizens.Othe rs are suspicious of the motives and actions of employees and openly indicate their lack of confidence. Other avoid, if not despise, the company of their workers. And still others are contemptuous of the intelligence of employees. Such attitudes are quickly noted. Obviously, it is natural for employees to return a negative attitude of mind. To reverse these behaviorisms serves to enhance the morale of employees. The author indeed emphasized how leadership style of management could affects the morale of the employees as one factor of morale development. 3.Extra Company forces and factors Morale may also be affected by forces and factors outside the company itself. The union is significant example and various community and family relationships are another. The union is so interwined, and becoming increasingly more so with company affairs that it may be incorrect to classify it as an extra company agency. But legally it is, of not in other relationships. Certainly it is a potent morale factor. How employees feels toward their company is significantly determined by the indoctrination they receive from their unions.And at times such as during a strike their attitude seems to be totally swayed by this force. Other extra company forces affecting employees morale are numerous. Though it may not be company business, an employees attitude toward at work is affected by a variety of things, such as 1. How well he gets aprospicient with spouse, children and tellings. 2. The nature of associations with friends and neighbors. 3. The state of personal health or of family well- being. 4. Whether or not the worker has picked a winner is politics, in a favorite team or in the last football pool. 5.Environmental factors in the community, such as parking and traffic conditions, housing conditions and ecological conditions. It big businessman seem a herclean task to cope with such as infinite variety of morale factors. This is not so. Not all are effective at the same time. But t o work with any of them, management should be able to determine which ones are effective at particular times. On Job Satisfaction and Morale Robbins describes job satisfaction as an attitude. A person with a high level or job satisfaction holds positive attitudes toward a job, while a person who is dissatisfied hold negative attitudes about the job.Attitudes of a person depend on the values they hold and that is important to them. Values strongly influence a persons attitudes. An employees performance and satisfaction are likely to be higher if his or her values fit well within the organization. The determinants of job satisfaction are mentally challenging work, equitable rewards, supportive working conditions, supportive colleagues and personality job fit. Mentally challenging work employees to prefer jobs that give them opportunities to use their skills and abilities and offer a variety of tasks, freedom and feedback on how well they are doing.Equitable rewards, pay dusts and pr omotion policies that are fair and just, and in line with their expectations. Supportive working conditions, concerns the work environments of both personal comfort and feedback. Temperature, promiscuous, noise and other environmental factors should be conductive. Supportive colleges money or evident achievements are not all that matter, work also fills the need for social interaction. Having friendly and supportive co- workers and boss increases Job satisfaction.Personality Job fit theory people with personally types congruent with their chosen vocations should find that they have the right talents and ability to meet the demands of their jobs. Satisfied and committed employees, for instance have lower rates of perturbation and absenteeism. There are at least 4 reasons why organizations should consider the level of job satisfaction 1. Dissatisfied employees skip work more often and more likely to resign. 2. Dissatisfied employees are more likely to engage in distructive behavior s. 3. Satisfied employees have better health and live longer. 4.Satisfaction on the job carries over to the employees life outside the job. According to Lyman Porter and Lawyer, satisfaction is delineate as the uttermost to which the rewards actually received meet or give-up the ghost the perceived equitable level forwards. The greater failure of actual rewards to meet or exceed perceived equitable rewards, the more dissatisfied a person is considered to be in a given situation. There are four relative independent areas that will or will not contribute to job satisfaction 1. Intrinsic satisfaction with the work itself 2. Satisfaction with the company, its goals, policies and procedures 3.Satisfaction with the relationship with co- workers and supervisors satisfaction discovering rewards and advancement opportunities. 4. Theory X and Theory Y were mentioned in the analysis. A whippy combination of both theories should be used to allow foe differences in people and conditions. In relation to satisfaction and performance, they found out that attitudes were related significantly to performance. As for what Vrooms theoretical analysis Job Satisfaction is well affected by the amount of reward that people derive from their job and level of performance is closely affected by the basis of attainment of rewards.Individuals are satisfied with their jobs to the extent to which their jobs provide them with what they desire, and they perform effectively in them to the extent that effective performance leads to the attainment or what they desire. CHAPTER III RESEARCH METHODOLOGY This chapter described briefly the approach in research that is deemed most appropriate for the purposes of the study and the techniques considered adequate for information gathering activities. RESEARCH DESIGN According to purpose and intent, the foregoing could be classified as a descriptive research.The focus and concern of this study is to determine the effects of the managers leadership st yles on the morale and job satisfaction of the service crews of leading fast- food chains in Metro Manila. As defined by Best, a descriptive research describes and interpret what is. It is concern with conditions of relationship that exist, practices that prevail of belief and processes that are going on, effects that are being felt, or trends are that developing. SAMPLING PROCEDUREA random sampling is used in the study, forty respondents each from three leading fast food chains Jollibee, McDonalds and Wendys are selected at random. Using this sampling method, a total of one hundred twenty (120) respondents are selected. DATA GATHERING INSTRUMENT use The major instrument used in gathering primary data is the questionnaire which was designed according to the specific problems advanced in the study. For this questionnaire, the data pertinent to the problem raised in the study were obtained. STATISTICAL TREATMENT OF DATAThe descriptive statistical tools were employed in the study. The mean, frequencies and percentages common measure of central tendency are used to present the typical performance or characteristics of the respondents. The respondents to questionnaire pertaining level of morale and job satisfaction are scaled, then the total weighted (TWS) and average weighted rack up (AWS) are computed using the Likert Scale Rating 1. 0-1. 5= Excellent= Highest 1. 51- 2. 0= Very Satisfactory = Higher 2. 1 -3. 5= Satisfactory = High 3. 51 -4. 5= Unsatisfactory = Low 4. 51-5. 0= Very unsatisfactory = Lowest SUMMARYThe effects of the Managers Leadership style on the Morale and the job Satisfaction of the service crews of the leading fast food chains, and then involving with the leadership that is then involved with the following 1. The personnel are highly motivated and then performs well on the things that they are satisfied. 2. The leadership managers is also an important factors for job satisfaction and performance of the personnel. 3. Job performance then invol ved with enhancing then of having a good pay, rapport among co- workers and superiors, nature of work, as mores of morale boosters and 4.Human relationship is then important in any organization as it influence then the job satisfaction and productivity of the business by running relationship between the labor and management. CONLUSION In this study, I would be able to conclude the following a. There is then the motivation that must be taken I regarding of the personnel. b. Dealing with this part, there is the leadership practices had been taken place. c. And it is then necessary and important for the managers to gain satisfaction in regarding with the customers. d. For this food chains, they are then able to gain the managing of the Customers service.RECOMMENDATION The results of this study is not conclusive due to the time constraints which inhibits the researcher to make extensive study. Hence, a more thorough investigation is recommended before any generation of generalization c ould be made. BIBLIOGRAPHY 1. Concepcion Rodil Martinez, Human resources Management Principles and Practices,rev. ed. (Manila National Book Store, Inc. , 1991). P. 3. 2. Carlos Lorenzana, Management Theory and Proactice, Manila Rex Book Store, Inc. , 1991). 3. John K. Hemphill, Situational Factors in Leadership, Leadership studies No. (Personal research Board, Ohio State University). 4. Stephen P. Robbins, Personnel The Management of Human Resources, (New York Practice Hall Inc. , 1988) 5. Warren, R. Plunkett and Raymond F. Attner, Introduction to Management, 2nd variate (Mass PWS- Kent Publishing Co. , 1991)PP. 341 342. 6. Theodore T. Herbert, Dimensions of Organizational Behavior (New York Macmillan Publishing Co. , 1976) pp. 119 120. 7. Fred F. Fieldler, the Contingency Model New Dimensions for Leadership Utilization, Journal of Contemporary Business 3 (1974), pp. 79 80.Review of related literature and StudiesThis Chapter presents the conceptual framework of the study that d etermines the relationship of entrepreneurial Management and Operation of Small Business in General Santos City. Conceptual Framework in spite of the financial slump experienced everywhere, the wheels of our local delivery continue to turn as our development spirals upwards, new business continue to open, and fresh investments pour in providing more employment and livelihood opportunities for the Generals, and in turn resulting to an increased capability to provide for the families necessities, especially education.Because of the growing industry competition and market demands, our entrepreneurs become more skilled, more ingenious, more creative and more determined. Small business is often regarded as entrepreneurship driven. The booming economic activity in General Santos City, its competitive development such as infrastructure, the presence of malls, traffic light, newly constructed commercial buildings and more than 12,000 plus registered businesses are some that create dynamic communities in the city.Hence, the city was identify as the area of great advancement and these are all due to Small businesses investments. Small businesses are vital for economic fruit and development in both industrialized and developing countries, by playing a key role in creating new jobs. Financing is necessary to help them set up and expand their operations, develop new products, and invest in new staff or production facilities. many small business start out as an idea from one or two people, who invest their own money and probably turn to family and friends for financial help in return for a share in the business.Figure 1. Conceptual Framework Chart The conceptual framework as shown in figure 1 is composed of three roles. The first component is the Entrepreneurial Management and their Operation which can gives impact in various areas it can also often closely associated with the firms overall success and survival. This makes the second component includes the Operation by the business as to Planning, Organizing, Leading, and Controlling. These component can create an impact to the industry that affects their operation at some point.Thus, makes the third component as composed of entrepreneurial orientation of small businesses as to innovativeness, pro activeness, and Risk Taking to seeks luck and take a bold action such as venturing into unknown market and committing resources to introduce new products or services ahead. Related Literature Small Business is very important segments in the society. (Kao & Liang, 2001) defined small business as one that is owned independently (that is, it is not a subsidiary of a larger firm) and managed by its entrepreneur/owner with little or no delegation of decision-making to employees.PLANNING Planning refers to process by knowing their strengths and weaknesses are and where they stand in the market place. The link to planning is provided by Fitzroy & Hubert, (2004) who also noted similarities between entrepreneur s and successful senior managers in their ability to plan across longer time perspective than junior managers or most non-managerial individuals. Thus, according to this line theory, planning should not be regarded as merely a bureaucratic exercise but more as evidence of a high managerial and organizational propensity and a necessary condition for sustained business increment.Entrepreneur and successful managers are more adept than other business owners and managers at overcoming apparent informational and production limitations to approach the theoretical production possibility frontiers of their enterprises. However, few-if-any- enterprises actually operate to full theoretical capacity and few targets are completely achieved even by firms that are generally considered to be successful. It is often argued that most business in fact only operate within an even more circumscribe set- the possibility set- of possibilities that owners deem to be relevant to their business.This sugge st an even closer and more constant link between managerial perception and intentionality and the business performance of an enterprise. (Kenney, 2008) Organizing It is a requirement to utilize the fullest potential of resources such as people, capital, and asset to ensure the success of the plans. Organizing coordinates the resources that needed to implement the plan. In organizing, company structure is established, relationships are formed and resources are allotted appropriately to visit the objectives sought for.(Camposano, 2003). A good and sound management organization may refer to in general refers to increase in size. In research, firm increment has been operationalized in many ways and different measures have been used. This may be one reason for the unlike results reported by previous studies (Weinzimmer et al. , 1998235), though other explanations have also been presented (Delmar et al. , 2003 Davidsson & Wiklund, 2000). Entrepreneurs must also be able to balance their managerial duties with leadership activities.In other words, they have to be able to handle both the day to day operations of the business as well as decision making obligations that determine the organizations long term direction, philosophy, and future. It is a precarious relationship, but entrepreneurs must be both managers and visionaries in order to build their organization. Indeed, it is contented that many otherwise talented entrepreneurs have failed because they were unable to strike an appropriate balance between details of management and the larger mission that guides the new venture.Many entrepreneurs eventually reach a point where they realize that these twin obligations cannot be fully met alone. It is at this point that staffing decisions can become a unfavourable component of long term business success. In general, entrepreneurs should search for ways to delegate some of their management tasks rather than their leadership tasks. After all, in most cases the new busi ness has long been far more dependent on its founders. LEADING/ MOTIVATING Inspiring others to do their part effectively in carrying out the organizations plans.Entrepreneurial leaders have some specific leadership attributes. Entrepreneurial leadership is leadership that is based on the attitude that the leader is self-employed. Leaders of this type take endeavour and act as if they are playing a critical role in the organization rather than a mostly important one and waken their people, demonstrate entrepreneurial creativity, search continuously for new opportunities and pursue them, take risk, venture into new areas and providestrategic direction and inspiration to their people, take responsibility for the failures of their team, learn from these failures and use them as a step to ultimate success and strategic achievement. Entrepreneurial leadership involves instilling the confidence to think, behave and act with entrepreneurship in the interest of fully realizing the intended purpose of the organization to the beneficial growth of all stakeholders involved. CONTROLLING Controlling is a six-step process that involves several systematic approaches to ensure performances standards are met in the most efficient way.While controlling is a complicated management function, its importance must not be under rated. They must (1. ) Establish performance standards. mathematical process standards give employees an idea of what is expected of them and tells how you assess their performance. This key is to maintain management control. (2. ) Conduct a job analysis and create a job explanation for each position within the company. Give feedback regularly and give annual performance appraisals. This makes the employee aware of individual chance and weaknesses.Entrepreneurship establish and maintain an environment within the business to encourage a efficiency among employees period the functions of management involve planning, organising, directing, and controlling of resources. This function is influence by objectives set by the entrepreneur. They are closely related to each other and interdependent. Organising ordinates the resources that needed to implement the plan. (Brown, et. al, 2005). Innovativeness To innovate successfully, firms must break out of the patterns that have shaped their thinking.For example, Tim Warren, director of research and technical services at the oil giant Royal Dutch/Shell, was sure that Shells employees had vast reserves of innovative talent that had not been tapped investing in new technology, R&D, and continuous improvement- for successful purpose, firms must seek advantages from the latest technologies. Innovativeness is concerned with supporting and encouraging new ideas, experimentation and creativity likely to result in new products, services or processes ( Fitzroy and Hubert, 2007 ).The indicators used to assess innovativeness comprised the level of intricacy in R&D, the extent of innovation and qualificati ons of the workforce. Firms were asked to indicate their level for involvement in R&D. For a small number of firms (13) R&D was their primary activity. In total, almost 60 % claimed to be highly involved in R&D, although a quarter undertook of R&D. The 2005 survey on the effects of entrepreneurial orientation, asked the nature of innovations as between product/service, process and logistics or words of service.Some firms recorded innovative activity across a broad spectrum whereas others recorded innovations only in respect of product or service. The diversity or extent of innovative activity was considered an important indicator of innovativeness (Daft, 2005) Pro activeness The concept of pro activeness refers to a firms efforts to seize new opportunities. Firms can use to act proactively (1) introducing new products or technological capabilities ahead of the competition- maintaining a high level of pro-activeness is central to the corporate culture of some major corporations.(2 ) continuously seeking out new product or service offerings- firms that provide new resources or sources of supply can benefit from a proactive posture. Pro-activeness is concerned with first mover and other actions aimed at seeking to secure and protect market share and with a forward-looking perspective reflected in actions taken in anticipation of future demand (Lumpkin Dess, 2005 ). The indicators of pro-activeness used here comprised quislingism incidence and extent, innovations, (in particular the incidence of novel innovations) activities designed to protect intellectual property and market structure.Information was sought about formal or in formal collaboration or alliances with other organizations during the 2 years prior to the 2005 study and the purpose of collaboration had relationship with atleast one of the following, firms in the same line of business customers and suppliers. The majority (more than two thirds) reporting collaborative partnerships gave more than one purpose. However, regardless of the type of organization collaborated with the purpose of collaboration was dominated by market-related issues.Of 74 CEOs giving reasons for collaboration 62 mentioned either to expand the range of products/services and/or to provide approach to new markets. Half of the remaining CEOs gave meeting current customer/client needs as the purpose of collaboration. Given that market-related issues dominated reasons for collaboration, firms were assessed for pro-activeness in terms of the diversity of organizations with which they had collaborated.In common with other studies of small businesses ( Kitson and Wilkinson, 2006) the majority of firms (60%) could be classified as operation in niche markets confronting 5 or fewer serious competitors. Although striving to establish dominance in a niche market may demonstrate pro-activeness, account also needs to be taken of the extent to which that market is dominated by one or two customers, on which the firm is highly dependent. Few firms (13%) were dependent on a single customer for more than 50% of turnover.It can be suggested that the ideal niche market sought is where customers dependence is relatively low and serious rivals few. Such situations were considered to have a positive niche market effect. The reverse situation relatively high customer dependence combined with higher numbers of serious rivals was considered to have a negative effect and intermediate situation a neutral effect. On the basis of the above indicators the firms were scored in terms of their level of pro-activeness. RISK TAKINGRisk taking refers to an entrepreneurs tendency to take a bold action such as venturing into unknown new market, committing a large portion of resources to ventures with uncertain outcomes, and/or acceptance heavily, firms can use the following two methods to reinforce their competitive position through risk taking (1)Researching and assessing risk factors to minimize uncertainty although all new business endeavors are inherently risky, firms that do their homework can usually reduce their risk (2) using techniques that have worked in other domains-risky methods that other firms have applied successfully may be used to advance corporate ventures. (ferreire,2008). Measuring the extent to which individuals differ in their willingness to take risk is contentious.Early work in small business research tended to be focused on various psychological characteristics such as locus of control and tolerance of ambiguity. CEOs subjective evaluation of their approaches towards risk is also fraught with difficulty since what one person regards as a calculated approach another may regard as aversion. Others have suggested that the differentiating factor is the way risks are calculated (Norton and Moore, 2004). This study focused on behavior which might willingness to invest with uncertain returns level of spending on R&D and investment in training as indicated by level of off-job tr aining for full-time employees.Just over half of the firms undertaking R&D spent an average of less than 10% of turnover on R&D in the 2 years prior to the 2005 study but a quarter recorded levels of more than 10% of turnover. Few firms (28) had sought venture capital and those that had were evenly divided in terms of success. quest venture funding was regarded as indicative of a willingness to take risks. The impact of involvement in technology sectors was evident from the incidence and extent of training undertaken. Many studies of small firms suggest that they do not train. However like other juvenile studies ( Barnett and storey, 2004) the incidence of training in the firms in this study was high. Almost two thirds provided some off-job training for full-time employees and in a quarter over 20% of full-time employees were given such training.As with employment growth and qualification of the workforce, relative training performance was assessed in respect of employment size. RELATED STUDIES The study conducted by Poutziouos, Michaela and Soufani reports the findings of an empirical investigation on the economic factors affecting small businesses in General Santos City. The study involved interviews in SMEs postal survey with responses from further companies, and entrepreneurship of small businesses. The findings show that although short-term entrepreneurship practices improve as companies grow there is scope for the owner- managers of small businesses to strengthen their trade credit management in order to reduce costs and enhance business performance. Moreover, they have to consider more financial options.This report has documented the key findings of many organizations responding global forces by re-engineering business process and shifting to horizontal organizations structures with self- directed teams. Some are adopting morphological innovations such as the network, to focus their core competencies while outside specialists handle other activities . In addition to these structural changes, todays organizations face the need for dramatic strategic and structural change, and for rapid innovations in technology and products. (Daft 1998). The report looked t how economic factors affects small businesses in General Santos City, and how these business manage their organizations.In the study of Berry & Sweeting (2002) stated that deficiencies in Economic Factors have been repeatedly cited as a root cause of business failure. (Najak and Greenfield 1994) two arguments are advanced for such deficiencies in SMEs that new entrepreneurship is not relevant and that SME managers are unable to make up use of business. Here, it is argued that Business ideas are relevant to SMEs but that a process of innovations combining both knowledge to overcome a barrier of belief and an external shock are necessary in order for innovation to take place. These ideas were explored through a survey to SMEs from both service and manufacturing business in Gene ral Santos City. It was observed that the use of organizational techniques is negatively related to growth in turnover.However, the use of organizational techniques that were related to the product market was found to be positively related to growth in turnover and that owner/mangers belief in the importance of organization in business decisions was strong related growth very negatively related to size. The second theme of the research was the significance of the role of external advisors. Prima facie it was suggested that external advisors may be key agents of change, but the study revealed that their perceived value was relatively low. The findings of this survey suggest that when entrepreneurship is perceived to be relevant then it use does support business growth but innovation in accounting in SME requires further research.In a study of measuring organizational performance by Wood & Walmsley (2004) it reports on the analysis methods used during a recent multinational experiment that was aimed exploring concepts for a new planning process within a condition of nations. In February 2004 over 400 participants from other countries took part in the multinational experiment conducted in a distributed collaborative environment. These participants formed a virtual coalition headquarters in order to plan an appropriate response to a crisis situation. These new planning process required whole-of-government approach encompassing government departments, coordination of coalition partners, government agencies, non-governmentorganizations and other international application of appropriate organizational structures and process together with supporting information system and technologies The challenge of this study and researcher was to design and develop valid and robust measures of organizational performance. They found out that changes to the way the constructs were operational are required in order to take account of the practical complexities of measuring performanc e. In another study on organizational performance by Mcmillan, Diedrich and Entin (2005), immersive virtual simulations offer an opportunity to gain insight and experience in new, innovative, organizational structures.Assessing the performance of these new organizations represents a considerable challenge due to the myriad of complex interrelated factors that may contribute to the outcomes observed in the simulation. Theories and models, often in the form of constructive simulations of organizational performance, can guide the development of empirical performance measures by linking comminuted behaviors to overall outcomes for organizations. Constructive simulations can be used to create meaningful test conditions for immersive performance measurement , to identify those aspects of performance that are most critical to measure, and to predict the effects of organizational structures on performance. Considerable challenge, however.This chapter provides examples of the use of the the ories and constructive simulations to structure empirical data collecting of organizational performance, and discusses the lessons learned from these efforts. The focus is on organizational structures for military command and control, including innovative structures associated with the new and rapidly evolving concept of network-centric warfare The study of Berry and Rodriguez (2001) reviewed the experience of small and medium enterprises in recent years in the Philippines. It notes that while Philippines economic growth picked up in the early 1990s/, the share of its small and medium enterprises (SMEs) in manufacturing employment and value added stayed roughly constant. However, the overall stability masks some dynamism across firm sizes and sectors.Thus, very small firms (with less than 10 workers) had higher than average rates of growth of total factor productivity during 1988-94c while larger firm (of between 50and 200 workers) experienced a decline in productivity. Toward the end of decade, the Philippines were affected by the economic factors but less seriously than some other Asians countries. Small firms do not seem to have been worse hit than larger firms. The Philippines has shown long-winded growth for decades, despite some recent recovery efforts. The evidence indicates that the SME sector was emerging from the deep economic crisis of the 1980s and experiencing the first positive effects of the economy wide reforms implemented in the late 1980s and early 1990s.By the mid- 1990s Philippine SMEs appeared to have recovered from long period of decline, but their performance, by itself, does not seem to have been vigorous enough to boost the Philippine economy after the 1997-98 crisis. Large firms and large foreign ownership have rationally characterized the Philippine manufacturing sector. During a period of deep market reforms in the 1990s the country open up to more FDI. Trade and economic reforms help to improve the growth scenario without provid ing a period of high growth. During the current crisis the modern sector manufacturing dominated the recovery by exporting high-end items and helped to buffer other negative impacts on Philippine manufacturing while creating a new, but small, breed of SMEs small or medium foreign-owned enterprises.The study presented in a forum of International Development Studies on kinfolk 2005, attempted to analyze the ways of governments bureaucratic system in the service delivery of SME sector affects the day-to- day operations of small enterprises, along with other related issues such as the central- local government relations, decentralization, partnership and networking approach, and the demand- supply driven public services. It looked at the experience of the Philippine governments policies and programs aim at SMEs growth. Dubbed as the national SME Development Agenda. The agenda incorporate a comprehensive and integrated approach to SME development, under the national governments directio n. Apparently, the agenda are centrally planned. Designed and implemented. At the lowest level of the government hierarchy, the local government units are entirely left only the monitor and coordinate the implementation of central government actions. Hence, the role and accountability of local stockholders are of well defined (especially the local governments).Citing Zamboanga City, the economic touch of western Mindanao region, the local government is lacking ownership involvement, and commitment to this national initiative. Despite this national government-led support scheme. SMEs are continually facing some problems and pressures pertaining to their business operations. Analysis on the effect of national governments a support scheme at the firm level is presented, with some implications toward the end. The study of Tamangan, Jocef and Habito (2004) discussed the role of SMEs in economic development has been well recognized. SMEs have been regarded as an important contributor to employment generation and wealth creation in developing economy.Ironically, however, SMEs have been discriminated against considering a raft of issues, In almost all countries, there is either a separate policy statement for SME (or for micro or cottage industries) or a general industrial policy statement with some potions of relating to SMEs. Philippines SME development policies that have been set in place may have been in light of major Philippine industrial development policies. Historically, the common thread that binds Philippine industrial policies has been the emphasis on policies regarding expansion of exports, increases in foreign investments, development of the snobby sector, and enhancement of domestic linkages. Moreover, there might have been industrial policies that may have been undermined SME development because inherent scale biases.Inroads regarding SME development have been realized in the economy thus far, but Philippines SMEs can still derive some lessons from t he Japanese experience, particularly Japanese practices regarding subcontracting and clustering. There is also a need to realize that it is now insufficient to address commonplace themes and roadblocks experienced by Philippine SMEs identified through historical experiences, Nowadays, it is inescapable to acknowledge the concerns regarding SMEs will have to be considered and addressed in light of globalization, which is most easily comprehended in terms of international trade. Bilateral trade cooperation is mutually beneficial.One way for Japan to encourage Philippine SME development, as part of bilateral trade cooperation, is to identify and to open some Japanese markets to Philippine SME exports. Hence, sector (or even sub-sector) identification in general, and product identification in particular, is a necessary first step to this end. The study of Salazar (1984) which was conducted among the 230 SMEs located in Region III, IV, NCR and VII in which the SMEs are located. The resul t of the study presented the economic factors practices adopted by the SMEs on cash forecasting, cash maintenance, sourcing of funds, allocation of borrowed funds and control measures fordaily operations. A study of Stan, Landry and Evans (2004) on boundary spanners satisfaction with organizational support services An internal communications perspective, offered insights into how internal communication by both managers and service providers impact a boundary spanners satisfaction with support services. The study used path analysis or structural equation modelling as a statistical tool. Results indicated that service provider and manager communications are largely complementary and that satisfaction with service outcomes, rather than service quality, appears to have an enduring impact upon a boundary spanners overall job satisfaction.Small and medium enterprises have long been building blocks of the Philippine economy comprising more than a majority of the total businesses operating in the country. Despite the numbers given and their contributions, many problems call the sector. One is in the aspect of the Economic Factors. Areas such as accounting systems, financing, working capital management and capital budgeting are some of the basic concerns of an SMEs which if not given the necessary attention could have an impact on the performance of the enterprise as a whole. The organizational performances of these enterprises are also dependent on these Economic Factors practices such as their competitive advantage, profitability, productivity, sustainability and innovation.