Management Styles in Relation to Monthly Net Income

of Different Restaurants in the

Municipality of Mambusao

Chapter 1

Background of the Study

The Municipality of Mambusao is one of the biggest and

famous towns in the province of Capiz. Mambusao is blessed

to have a lot of restaurants. As of July 2017, there are

already six restaurants found in this municipality which

catered the needs not only of the local folks but also

those coming from other towns and provinces.

The business environment is fraught with

encumbrances arising from the fluidity and dynamics

of the world economy and the global business environment.

The threats and opportunities occasioned by the

uncertainties and changes associated with the business

environment stifled the growth of a number of these

enterprises while a few were able to weather the

economic storms, exploited the opportunities and

improved product quality, productivity and profitability

(Nwadukwe & Timinepere, 2012).

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Management styles are the vital factor in the

achievement of success of any organization. It is the prime

pre-requisite for the realization of organizational

objectives (Okon & Isong, 2016). Management style is one of

the critical antecedents to organizational effectiveness.

Management style is simply construed as a way to manage an

organization. It is the general approach of a manager in

dealing with people at work and exercising of authority

over subordinates in an effort to reach

organizational goals (Quang, 2002 & Hartzell, 2006)

Management style’ is the overreaching manner in which

management exercises control over its workers (Dimitrova,

2003). Similarly to, Hersey and Blanchard, (1993),

management style is the pattern of behaviors that managers

display during their work with and through others.

Management style is a managerial parlance often used

to describe the how of management. It is a function of

behavior associated with personality (McGuire, 2005).

Management style can be understood as a way to manage an

organization. Management style is “the adhesive that binds

diverse operations and functions together”. It is the

philosophy or set of principles by which the manager

capitalizes on the abilities of the workforce. Management

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style is not a procedure on how to do but it is the

management framework for doing. A management style is a way

of life operating throughout the enterprise and permits an

executive to rely on the initiative of the personnel of an

entity (Nwadukwe & Timinepere, 2012).

The term management style can be defined as the method

a manager uses in administering an organization (Robbin,

2003). It includes controlling, directing, and indeed all

methods used by the manager to motivate subordinates to

follow their instructions. It can also be described as the

particular practice used by the manager to direct

the affairs of an organization. A management style is

a way of life operating throughout the enterprise and

permits an executive to rely on the initiative of the

personnel of an entity. For small scale businesses to grow,

the operators must adopt an effective management style.

Effective management style is the extent to

which a leader continually and progressively leads

and directs followers to a predetermined destination

agreed upon by the whole group. It is the manner of

approach to issues of the managers towards achieving the

goals of their organization by transforming various

resources available to any organization into output through

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the function of management (Field & Dubey, 2001).

Khandwalla (1995) considered management style as the

distinctive way in which an organization makes

decisions and discharges various functions of goal

setting, formulation, implementation of strategy, corporate

image building, dealing with key stakeholders and other

basic management activities.

Manager is the beating heart of an organization and

his ideas all always flowing and this is why successful

companies have been always caring capable and qualified

managers’ name with them. Studies show that management

style of the managers have a significant effect on the

efficiency of an organization and these are manages who,

with the use of ideas of great people such as Blanchard,

Dessler, Likert etc, have managed to steer their company to

its destination in different time and places (Luthans,

2008).

The style that a manager uses as his dominant style

and for coordinating the affairs in performing the

activities of an organization and the way he performs his

tasks have the highest level of effect on execution process

of tasks as well as the cooperation level his colleagues

provide him with. This means that the behavior style of the
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manager, the way he interacts and the style he adopts in

this relationship guarantees the highest percentage of

success of him (Vahedi & Asadi, 2013).

Management style affects productivity when the workers

feel they do not belong due to management based on ethnic,

religion, race, age and culture, which reduces dedication

and commitment to work. The government in many instances

has assumed the function of entrepreneurs and taken over

the managerial functions with instances abound to convince

everyone that the government has not fared well as a

good manager and even perform worse than private

entrepreneurs (Femi & Chukwubueze, 2015).

The restaurant industry has become one of the most

profitable industries in the world. International and local

restaurant chains are satisfying the demand of customers in

variety of range of products and services (Sabir, et. al,

2014).

Basically this is the era of globalization and

due to advancement of media world is shrinking in

terms of culture and habits so the fashions as well

as eating patterns are also being opted among all

over the world and this the reason for such a huge spread

of restaurant industry in the world.

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Restaurants can offer different cuisine and concepts

as well as establishments styles, and operate under

different management structure. Nevertheless, while the

industry is diverse, commercial restaurants all share

similar attributes as they offer food and beverages to

customers for consumption on the premises in return for

monetary grains (Brotherton, 2003 & Kiefer, 2002).

This study connects to the theory X-Y that states that

theory X adopts the authoritarian view that people normally

abhor working and must be forced to work with punishment

looming as the consequence for failing to meet the

objective. Theory X argues that these people actually

prefer to be directed and lack ambition. Theory Y adopts

the participative management style, which operates on the

premise that people are inherently motivated to work if

they find the job fulfilling. By providing the employees

with a pleasant working environment, a leader makes it

possible for them to learn new things, be creative, accept

responsibility and become successful.

This study focused on management styles as independent

variable and monthly net income of different restaurants in

the municipality of Mambusao as dependent variable as shown

by the conceptual framework below.

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Independent Variable Dependent Variable

Monthly Net Income of

Different Restaurants in the

Management Styles
Municipality of Mambusao

Figure 1. The monthly net income of the different

restaurant-owners in the Municipality Of Mambusao as
affected by the management styles

Statement of the Problem

The primary purpose of this study was to determine the

management styles in relation to monthly net income of

different restaurants in the municipality of Mambusao.

Specifically, this study sought to answer the

following questions:

1. What are the levels of management styles of the

restaurant owners in Municipality of Mambusao?

2. What is the monthly net income of the different

restaurants in the Municipality of Mambusao?

3. Is there a significant difference among the

management styles of the different restaurants in the

Municipality of Mambusao?
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4. Is there a significant difference between the

monthly net income of the different restaurants in the

Municipality of Mambusao?

5. Are there significant relationships among the

management styles of the restaurant owners and the monthly

net income of different restaurants in the Municipality of

Mambusao?

Based on the stated problem of this study, the

following hypothesis will be tested:

1. There is no significant difference in the levels of

management styles of the restaurant owners in the

Municipality of Mambusao.

2. There is no significant difference in the monthly

net income of different restaurants in the

Municipality of Mambusao.

3. There are no significant relationships between the

management styles and the monthly net income of

different restaurants in the Municipality of

Mambusao.
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Significance of the Study

The result of this study may be beneficial to the

owners or businessmen, employees and customers.

Owners/Businessmen. The result of this study will be

of help to the owners or businessmen as they will be able

to determine on how to improve their managing style to make

their business profitable and they will have an idea on how

to maintain the good performance of the business. With the

information they can get from this study, they will know

the different managing styles that can be apply and can

really help them a lot in doing their business. They will

also have knowledge if the management styles they have is

appropriate for the sake of their business.

Employees. Through this study, the employees will be

familiarized the managing style on the way the manager

manage the business and they will be motivated on

performing their duties in the business. The study will

help them to decide if the management styles of the

business have an advantage to them as employees.

Customers. Results of the study will give them

valuable information regarding the management style of the

business. They will also have an idea if the service

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rendered of the business can satisfy them or not. They will

determine if the management style of the business is

acceptable or not.

Future Researchers. The study can help other

researchers to have a basis on the connection about

management styles for the different businesses. They may

benefit from the method that is employed and the findings

that can be used as basis for further researches.

Definition of Terms

For better understanding, the following terms were

defined conceptually and operationally:

Management Styles – is the method that a manager uses

in administering an organization. It includes controlling,

directing, and indeed all methods used by the manager to

motivate subordinates to follow their instructions. It can

also be described as the particular practice used by

the manager to direct the affairs of an

organization.

In this study, “management styles” referred to the

ratings of the employee to their manager in a 20-item

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questionnaire adopted from NHS Foundation Trust Leadership

& Management Style (2012).

Manager – is someone who is in charge of a business,

department, etc. Manager is also the one who is responsible

for managing their business.

Restaurant – is a kind of business where you can buy

and eat a meal/food.

Net Income – a gain or recurrent benefit usually

measured in money that derives from capital or labor. It is

also the money that is earned from work, investments,

business etc.

Delimitation of the Study

The survey – correlational research design was used in

order to determine the management styles in relation to the

monthly income of different restaurants in the municipality

of Mambusao.

The participants of this study were the 28 employees

of the different restaurants in the municipality of

Mambusao using purposive sampling.

To determine the management styles of the business,

20-item standardized management styles test adopted from

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NHS Foundation Trust Leadership & Management Style

Questionnaire. The test underwent face validation by the

student’s researchers of Mambusao National high School.

The independent variables covered in this study are

the management styles of the managers of different

restaurants. The dependent variables was only limited to

the monthly net income of different restaurants in the

Municipality of Mambusao.

The study was focused and limited only on the

management styles of the different restaurants and will be

determined based on their responses during the interview

and questionnaires given to them.

The questionnaires were administered once and there

were no personal observation conducted to the different

restaurants in the Municipality of Mambusao.

Only the 28 employees of the different restaurants

were used as respondents using purposive sampling.

The statistical tools that were used in data analyses

are frequency count, percentage, mean, person r, one-way

Analysis of Variance (ANOVA).