1

Chapter 1
THE PROBLEM
This chapter provides a brief overview of the study presented in this thesis. This
chapter introduces the reader to the rationale of study, the statement of general and
specific problems, the scope and delimitation, the significance of the study which
enumerates the beneficiaries of the study and their corresponding benefits, the review of
related literature, the paradigm of the study, the hypotheses and assumptions, and the
definition of terms.

Introduction
As the worlds major economies have matured, they have become dominated by
service focused businesses. But many of the management tools and techniques that
service managers use were designed to tackle the challenges of product companies. Frei
(2008). In economics, service is an economic activity where an immaterial exchange of
value occurs. Service refers to quality of customer service: the measured appropriateness
of assistance and support provided to a customer.
Tacloban is the economic center of Eastern Visayas, with an economy largely
focused on commerce, tourism, trade, education, culture and government in region.
Economically, Tacloban is one of the fastest growing cities in the Philippines. After its
massive devastation on November 8, 2013 due to a super typhoon named Yolanda,
Tacloban is now considered as start up city, which means everything has to start back

from scratch. Currently, the city is experiencing a rapid economic bounce back, and is
dubbed as the rising phoenix of the East surviving its challenges that once made the
city classified into ground zero.
According to Brooks (2013), one of the keys to any successful business is being
able to come up with new ideas to keep operations, products and services fresh. The
process of bringing those ideas into reality is called Innovation. Thinking up new ideas is
one step of the process, business have a much greater task in trying to turn that into actual
product or service that will benefit customers.
Leadership style is not about good/bad, right/wrong: leadership style depends on
the task, people and situation to be managed. Ros Cardinal (2013). As competition
intensifies, industries are re structured and new technologies are introduced, strategic
planning and competitive strategy have an important role to play.
The purpose of this study is to assess the level of innovations and types of
management among service concern businesses and how these affect the performance of
the businesses, in Tacloban City.
This study can be used as inspiration by the business students to study more or
learn more about handling innovations and study/learn about what specific type of
management can be very useful in a business; to entrepreneurs in able for them to get
some ideas on how to manage their own business to be built; and to the managers in order
for them to enlighten their minds on how innovation and types of management greatly
affect the performance of the business.

Statement of the Problem

The overall purpose of this study is to assess the level of innovations and types of
management among service concern businesses and how they affect the performance of
the business, in City of Tacloban, Leyte.
Specifically, it seeks to answer the following questions:
(1) What is the type of management is being applied to the business?

(2)

What were the innovations in the following factors:

2.1 Product/Services;
2.2 Marketing; and
2.3 Process
(3) What are the effects of the types of management and the level of innovation to the
performance of the business?

Scope and Delimitation

This study is focused in determining the level of Innovations and types of
management among service concern businesses in city of Tacloban, leyte. Service
concern business such as restaurants, hotels, repair and vulcanizing shop, and laundry
shop with at least two years of continuous service to people/ customers were the
respondents of the study.
In this study, the type of management refers to the management style used by the
service concern business managers into the business. According to Mc Hayber (2013)
there were six management or leadership styles; Authoritative style; Affiliative style;
Participative style; Pace setting style and coaching style.
A validated questionnaire checklist served as the main instrument of the study; a
follow up interview has also used primarily to clarify vague answer; and documentary
analysis was likewise employed to answer the specific questions raised in the proposal.
The study does not intend to cover other topics not enlisted above. The data
collected could or could not be apply in general across industries and businesses. The
firm must be classified as a service concerned business. The study will be conducted at
Tacloban City, Leyte.

Significance of the Study

The result of this study will greatly benefit the following:
Students; The result may serve as an inspiration for them to be more focused on
learning about innovations and management as they realizes the importance of these in
the businesses rising right now.
Entrepreneurs; This study will provide information on the extent of managerial
skills that a businessmen must possess, to be able for a business to grow and become
more successful in the future.
Managers; This study can be used as a source of information or guide for
planning their management style that can be very useful in managing their respective
businesses.

Chapter 2
Theoretical Framework
Relevant Theories
Diffusion of Innovation Theory, developed by E.M. Rogers in 1962, is one of the
oldest social science theories. It originated in communication to explain how, over time,
an idea or product gains momentum and diffuses (or spreads) through a specific
population or social system, adopt a new idea, behavior, or product. Adoption means that
a person does something differently than what they had previously (i.e., purchase or use a
new product, acquire and perform a new behavior, etc.). The key to adoption is that the
person must perceive the idea, behavior, or product as new or innovative (Caritos,
2016).This theory takes radically different approach to most other theories of change.
Instead of focusing on persuading individual to change, it sees change as being primarily
about the evolution or reinvention of products and behaviors so they become better fits
for the needs of individuals and groups. It is not people who change, but the innovations
themselves.

Review of Related Literature

On Types of Management. There are several different types of management styles when
it comes to managing in the workplace and choosing the right type of style to lead with
could have a big impact in terms of how your staff produces for you. But knowing the
four different leadership styles in management does not mean that you can simply pick
one and then that is going to work because you are then in essence trying to fit a square
peg into a round hole. In most cases, the traits of the staff that you are managing will help
to define the management styles you will use, something blending a combination of the
different categories. According to Hay-McBer(1999) there are six key leadership or
management styles: The DIRECTIVE (Coercive) style has the primary objective of
immediate compliance from employees; The AUTHORITATIVE (Visionary) style has the
primary objective of providing long-term direction and vision for employees; The
AFFILIATIVE style has the primary objective of creating harmony among employees
and between manager and employees; The PARTICIPATIVE (Democratic) style has the
primary objective of building commitment and consensus among employees; The
PACESETTING style has the primary objective of accomplishing tasks to a high standard
of excellence; and The COACHING style has the primary objective of long-term
professional development of employees.
On Level of Innovations. The concept of innovation is quite diverse, depending mainly
on its application. Briefly, Inventta.net believes that innovation is the successful
exploitation of new ideas. And companies success, for example, means increased
revenues, access to new markets, increased profit margins, among other benefits.
According to Terwilliger(2015) There are three level of innovation that you can pursue:

Incremental Innovation. This consists of small, yet meaningful improvements in your

products, services, and other ways in which you do business; Breakthrough
Innovation. This is a meaningful change in the way you do business that gives
consumers something demonstrably new (beyond "new and improved"); and
Transformational Innovation. This is usually (but not always) the introduction of a
technology that creates a new industry and transforms the way we live and work.

Review of Related Studies

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Conceptual Framework

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Paradigm of the Study

Types of
Management in
the Business

The Level of
Innovation in the
Business

Production;

Accounting;
and

Product/Ser
vices

Marketing;

Figure 1: The Effects of the Relationship of Type of Management and Level of

Innovation on the Performance of the Business.

Performanc
e of the

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Hypothesis of the Study

The following hypotheses were formulated:
(1)

The type of management style used has no significant relationship to the

level of performance of the staff in the business.

(2)

The level of innovation among service concern business were statistically

low.
(3)

Assumptions of the Study

Upon the conduct of the study, the following assumptions are expected:
(1) The managers of the selected service concern businesses have different
management styles.
(2) The work productivity of the managers as well as that of the company staff
depends on the kind of management style.
(3) The innovation among selected service concern businesses were much more
visible than the other business in Tacloban City.

Definition of Terms

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For a better understanding of the different terms used in the study, the following are
defined conceptually or operationally:
Terms that are defined Operationally:
Level of Innovation. This refers to the ability of the business to adopt to the change or
innovations in product/services, technology, and process.
Types of Management. This refers to the kind of management arose in the businesss
environment (Production, Accounting, and Distribution).
Terms that are defined Conceptually:
Product/Services Innovation. According to Mintel.com, its about creating new products
that customers will love, taking different path consumers want to follow.
Marketing Innovation. It is the implementation of a new marketing method involving
significant changes in product design or services and promotion or pricing (OECD Oslo
Manual, 2005)
Process Innovation. It is the implementation of a new or significantly improved
production or delivery method(including significant changes in techniques, equipment
and/or software.) InnoviSCOP.com
Production.
Accounting.
Distribution.

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Service Concern Business.

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Chapter 3
RESEARCH METHODOLOGY
This chapter addresses the question of how the problem will be investigated. This
includes the description of the research design which is quantitative approach and its
components, the setting of the study and target participants. This chapter will also discuss
the specific type of instrument to be used in the study and its validity and reliability.

Research Design
This study used the quantitative and qualitative methods of research.
Quantitative data deal primarily with numbers. Quantitative research seeks to establish
relationships between variables and look for and sometimes explain the cause of such
relationships. It also aims to establish a generalization that transcends the immediate
situation or particular setting. Qualitative research, on the other hand, focuses on the
subjective meaning of an experience to an individual

Asperas(2005). It is more

concerned with the understanding situations and events from the point of view of the
participants.

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Respondents and Sampling Procedures

There were two groups of respondents of this study, the business owner-manager and
their corresponding staff/service crew, shown in Table.1
Table.1 Population of the Study
Name of the Businesses(Service Concern)

Manager

Crew/Staff

Total

Pendukos (Barbecue house)

Dunkin Donuts

Mc Donalds Restaurant

Jollibee Restaurant

1
1
1
1
1
1

Total

10

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Instrument of the Study

The researchers have come up a questionnaire as the primary way of gathering
data. A questionnaire is a research instrument consisting of a series of questions and other
prompts for the purpose of gathering information from respondents. They are often
designed for statistical analysis of the responses (Wikipedia).
The questionnaire was composed of two sets. The first set having two parts was
for the business managers to find out the profile of the business which included the nature
of operation, the number of employees, and the number of years already operated, and the
second part is the assessment of the level of innovations of the business currently adopt.
The second set has two sections also. The first section is about the profile of the
crew/staff, the span of working in that selected business, and the the second part is about
its own experience/observation under the supervision of his/her managers during working
hours, simply, the second part is about the assessment of type of management used by the
businesss managers in the point of view of their underlings. The responses used were the
following:

5 Completely true (81% to 100% true)

4 Generally true (61% to 80% true)
3 Moderately true (41% to 60% true)

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2 Partly true (21% to 40% true)

1 Not at all true (0% to 20% true)
Thus, when a respondent indicated his/her response as 5, this would mean that a
particular statement is believed to be 81% to 100% observed or practiced. 4 when the
respondents believed that the statement is generally true which range from 61% to 80%.
Moderately true that range from 41% to 60% when the respondents answers 3. And,
2 when it is partly true ranging from 21% to 40%. Whereas, a response of 1 would
mean that a particular statement is believed to have never been observed or is 0% to 20%
true.

Establishing the Validity and Reliability of an Instrument

Reliability and validity are important concepts in research. Validity is the ability
of an instrument to measure what it purports to measure (Cristobal, Jr. & Cristobal,
2013). Therefore, to ensure the validity of the questionnaires, draft copies were being
consulted. Examinations were done to the questionnaires and necessary corrections were
made.
Reliability refers to the consistency of results (Cristobal, Jr. & Cristobal, 2013).
To ensure reliability of the instrument used for the study, a pre-testing was conducted.
The individuals who had taken the pre-test did not serve as respondents of the study.

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Statistical Treatment
The researchers will use the following statistical treatment to process the data of
the study:
Percentages. A percentage is a way of expressing a proportion, a ratio, or fraction
in relation to a whole, with 100 as the denominator.
The formula is:
Where:

Percentage = f/N x 100%

f = frequency
N = population

Weighted mean. It refers to the set of data taken from the average of the
population.

The formula is:

fx
N

WM =

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Where:
WM

= weighted mean

fx
N

= sum of the products of the frequency with

weights

= sample size

References
Books, revised edition
Cristobal, A. Jr. & Cristobal, M.C. (2013). Research made easier a step-by-step
process. C&E Publishing, Inc. Quezon City.

Journals supplement
Berthon, P., Ewing, M. T., & Napoli, J. (2008). Brand management in small to
medium-sized enterprises.

Journal of Small Business Management,

46(1),

27-45.
Berthon PR, Pitt L, Campbell C. 2008. When Customers Create The
Management Review 50(4): 630.

Ad. California

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Unpublished Materials

Electronic Data File

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ST. PAUL SCHOOL OF PROFESSIONAL STUDIES

Brgy. Campetic, Palo, Leyte

PROBLEM: The Level of Innovation And Types of Management Used among

Service Concern Businesses

QUESTIONNAIRE for Service Concern Business Owners

I.

PERSONAL DATA SHEET

DIRECTIONS: Please provide pertinent information to the items below by
checking the appropriate blanks and/or by supplying the answer on the blanks.
Name (Optional): ________________________

1. Nature of Business:
__ General Merchandise
__ Service Provider
__ Others (Please specify)
2. Number of employees
__ 1-5
__ 6-10
3. Number of year(s) operated

__ 11-15
__ others, specify.

__ 1 year & below

__8-10 years

__ 2-4 years

__10 years & above

__ 5-7 years

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II. ASSESSMENT OF THE LEVEL OF INNOVATION IN THE BUSINESS

DIRECTIONS:

Indicate

the

degree

to

which

you

think

the

following

statements/indicators are true or false to you about your managers. Check the appropriate
column.
5 Completely true (81% to 100% true)
4 Generally true (61% to 80% true)
3 Moderately true (41% to 60% true)
2 Partly true (21% to 40% true)
1 Not at all true (0% to 20% true)

1. TECHNOLOGY

We use CCTV for security

purposes

1.1.

We rely more on technology

(Equipment) than manpower.

1.2.

We use Computers for record

keeping and other matters.

1.3.

2. Product/Services

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We offer Freebies (Free Massage,

Free Delivery, Buy One-Take One and
etc..)

2.1.

2.2.

We give discounts c

2.3.

Social media promotion

3. Process
3.1.
3.2.

3.3.

Computerize process system

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ST. PAUL SCHOOL OF PROFESSIONAL STUDIES

Brgy. Campetic, Palo, Leyte

PROBLEM: The Level of Innovation And Types of Management Used among

Service Concern Businesses

QUESTIONNAIRE for Service Concern Business Owners

II.

PERSONAL DATA SHEET

DIRECTIONS: Please provide pertinent information to the items below by
checking the appropriate blanks and/or by supplying the answer on the blanks.
Name (Optional):

Age:

Working experience as service crew/staff:

19 and blow

6months and below

20-25 years old

7months -1year

26-30 years old

1-5 years

Gender:

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Male
Female
II. ASSESSMENT OF THE TYPE MANAGEMENT IN THE BUSINESS

DIRECTIONS:

Indicate

the

degree

to

which

you

think

the

following

statements/indicators are true or false to you about your managers. Check the appropriate
column.
5 Completely true (81% to 100% true)
4 Generally true (61% to 80% true)
3 Moderately true (41% to 60% true)
2 Partly true (21% to 40% true)
1 Not at all true (0% to 20% true)
I.

COMPANY ENVIRONMENT

1. Closely controls employees

2. Motivates by threats and decipline
3. Gives employees clear direction.
4. Motivates by persuasion and feedback on task

performance.
5. Avoid conflicts and emphasizes good relationship

among employees.
6. Motivates by trying to keep people happy.

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7. Encourage employees input in decision making.
8. Motivates by rewarding team effort.
9. Performs many task personally and expect

employees to follow his or her example.

10. Motivates by setting high standards and expect

employees self-direction from employees.

11. Help employees to develop their strengths and

improve their performance.

12. Motivates by providing opportunities for

professional development.