Abellano - Caceres Super Final

1 OPERATIONS MANAGEMENT PRACTICES OF SELECTED RESORTS IN
2 MALILIPOT, ALBAY
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5 An Undergraduate Thesis Presented to the Faculty
6 of the School of Business Management and Accountancy
7 Divine Word College of Legazpi
8 Legazpi City
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12 In Partial Fulfillment
13 of the Requirements for the Degree of
14 Bachelor of Science in Management Accounting
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19 By:
20 FRIA MAE ABELLANO
21 MAREE KASSANDRA CACERES
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24 December 2021
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29 RECOMMENDATION FOR FINAL ORAL EXAMINATION

30
31 In partial fulfilment of the requirements for the Degree of Bachelor of

32 Science in Management Accounting, this thesis entitled: “OPERATIONS
33 MANAGEMENT PRACTICES OF SELECTED RESORTS IN MALILIPOT,
34 ALBAY” prepared and submitted by FRIA MAE A. ABELLANO and MAREE
35 KASSANDRA C. CACERES is hereby submitted to the Thesis Committee for
36 consideration and approval.
37
38 ANNE TABLIZO, CFMP

39 Thesis Adviser
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42 THESIS COMMITTEE
43
44 In partial fulfilment of the requirements for the Degree of Bachelor of

45 Science in Management Accounting, this thesis entitled: “OPERATIONS
46 MANAGEMENT PRACTICES OF SELECTED RESORTS IN MALILIPOT,
47 ALBAY” prepared and submitted by FRIA MAE A. ABELLANO and MAREE
48 KASSANDRA C. CACERES, is hereby recommended for final oral defense.
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51 TRESSA ADELFA M. MORTOLA, CPA, LPT, Ph.D.
52 Chairperson
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54 MARIVIC A. ARMARIO, LPT

55 Member
56 MIRIAM K. MANALO, LPT, Ed.D.
57 Member
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63 RESULT OF THE ORAL EXAMINATION

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65 Candidates : FRIA MAE A. ABELLANO

66 MAREE KASSANDRA C. CACERES
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68 Thesis Title : “OPERATIONS MANAGEMENT PRACTICES OF

69 SELECTED RESORTS IN MALILIPOT, ALBAY”
70 Place :
71 Date :
72 Time :
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74 PANEL OF EXAMINERS ACTION TAKEN

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76 TRESSA ADELFA M. MORTOLA, CPA, LPT Ph.D. ________________

77 Chairman
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79 MARIVIC A. ARMARIO, LPT ________________

80 Member
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82 MIRIAM K. MANALO, LPT, Ed.D. ________________

83 Member
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87 ANNE TABLIZO, CFMP

88 Thesis Adviser
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99 APPROVAL SHEET
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101 Upon the recommendation of the Oral Examination Committee, this

102 thesis entitled: “OPERATIONS MANAGEMENT PRACTICES OF SELECTED
103 RESORTS IN MALILIPOT, ALBAY” prepared and submitted by FRIA MAE A.
104 ABELLANO and MAREE KASSANDRA C. CACERES is hereby approved in
105 partial fulfilment of the requirements for the Degree of Bachelor of Science in
106 Management Accounting.
107
108 MIRIAM K. MANALO, LPT, Ed.D.

109 Class Adviser
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113 TRESSA ADELFA M. MORTOLA, CPA, LPT Ph.D.

114 Dean
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131 EDITOR’S CERTIFICATION

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133 This is to certify that the thesis entitled: “OPERATIONS MANAGEMENT

134 PRACTICES OF SELECTED RESORTS IN MALILIPOT, ALBAY” prepared and
135 submitted FRIA MAE A. ABELLANO and MAREE KASSANDRA C. CACERES,
136 in partial fulfilment of the requirements of the Degree of Bachelor of Science in
137 Management Accounting, has been edited by the undersigned, and reviewed to
138 conform to the institutional format of Divine Word College of Legazpi, School of
139 Business Management and Accountancy and elements of technical writing.
140 Issued this ________ of _______ at Divine Word College of Legazpi.
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144 Editor
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158 ACKNOWLEDGEMENT
159 The researchers wish to express their profoundest and sincerest gratitude
160 to the following persons who, in one way or another have contributed in the
161 realization of this work:
162 DWCL ADMINISTRATORS, headed by REV. FR. NEILO M.
163 CANTILLADO, SVD, for piloting their beloved school thus giving them the
164 opportunity to experience personal, spiritual and academic growth;
165 TRESSA ADELFA M. MORTOLA, LPT, CPA, Ph. D, the Dean of the
166 School of Business, Management and Accountancy, and chairperson of the
167 panel committee for giving them the chance to undertake this study.
168 MARIVIC A. ARMARIO, LPT., the member of the thesis committee – for
169 her collaborative ideas and suggestions which all the more improved this
170 research work;
171 MIRIAM K. MANALO, Ed.D., the panel and class adviser for imparting her
172 knowledge and expertise in relation to thesis writing. Likewise, for extending her
173 ideas, support and motivation towards the completion of this study
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174 ANNE TABLIZO, CFMP, their thesis adviser, for giving direction and
175 prolific advice which have contributed to the improvement of this study as well as
176 for his unwavering support and motivation all throughout the research.
177 The RESPONDENTS – the resorts at Malilipot, Albay without whose
178 cooperation, this endeavor would not have been completed and would not have
179 been a success;
180 Their PARENTS and FAMILIES, whose love and support keep uplifting
181 their well-being and their concerns and whose unfailing assistance was of great
182 help to the accomplishment this research work;
183 All those who have contributed immeasurably in making this research
184 possible;
185 Above all, to GOD ALMIGHTY, for perfectly setting everything in place –
186 preparing the path from the conceptualization up to the realization of this study
187 as well as providing the whole lot for the researchers – but most of all, their
188 deepest gratitude for His love that endures forever.
189
190 FMA & MKC
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192
ABELLANO, FRIA MAE AYCARDO ABSTRACT

CACERES, MAREE KASSANDRA
CLARIANES “OPERATIONS MANAGEMENT
PRACTICES OF SELECTED
RESORTS IN MALILIPOT,
ALBAY”
(Unpublished Undergraduate
Thesis presented to School of
Business, Management and
Accountancy, Divine Word
College of Legazpi, Legazpi City)
193
194 This study determined the operations management practices of selected resorts
195 in Malilipot Albay. The statement of the problem is composed of the profile of the
196 respondents, the operations management practices in terms of financial,
197 marketing, and human resource, and the issues and concerns encountered in
198 terms of their personnel, services, and facilities. To achieved the objective of this
199 study, a questionnaire was given to five resorts namely Dos Montes Spring
200 Resort, Cabulwangan Hill Spring Resort, Patio De San Jose Resort, PR Palces
201 Resort, and Gamboa’s Orchard. Based on the findings of the study, the
202 researchers found out that the resorts, have an initial capitalization amounting
203 from of Php 4 million-Php 15 million and revenue ranging from Php 50,000 to
204 250,000 and expenditure amounting to Php 30,000.00 to Php 100,000.00
205 respectively. The operations management practices of the respondents based on
206 their financial, marketing and human resource yielded positive results. The
207 resorts are outstanding in handling and stabilizing their finances. The marketing
208 aspect of all resorts is highly-efficient. Thus, larger number of customers is
209 expected to enter the business. The human resource is known as the personnel
210 or talent management of the business. The management see to it that they
211 picked the most deserving employee by choosing them based on the work
212 experience, skills and educational background. The issues and concerns were all
213 about the incompetency and inefficacy of the staffs that led to the high turnover
214 of the personnel. The resorts’ services are present however, there are indicators
215 that needs improvement. In its entirety, the resorts did not encounter any issues
216 and concerns in connection with their facilities.
217 Key words: Operations Management, Financial, Marketing, Human
218 Resource, Services, Facilities
219
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220 TABLE OF CONTENTS
221
222 TITLE PAGE
223
224
225 RECOMMENDATION FOR ORAL EXAMINATION i
226
227
228 RESULT OF THE ORAL EXAMINATION ii
229
230 APPROVAL BY THE PANEL OF EXAMINEERS iii
231
232 EDITOR’S CERTIFICATION iv
233
234 ACKNOWLEDGEMENT v
235
236 ABSTRACT vii
237
238 TABLE OF CONTENTS viii
239
240 LIST OF TABLES x
241
242 LIST OF FIGURES xi
243
244 CHAPTER
245
246 I THE PROBLEM AND ITS SETTING
247 Introduction 1
248 Statement of the Problem
249 2
250 Scope and Delimitation of the Study 3
251 Significance of the Study 3
252
253 II REVIEW OF RELATED LITERATURE
254 Operations Management 5
255 Operations Management Practices 7
256 Financial 7
257 Marketing 8
258 Marketing Mix 9
259 Product 9
260 Price 9
261 Place 10
262 Promotion 10
263 Human Resource 11
264 Resorts Business 14
265 Service 16
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266 Facilities 18
267 Synthesis of the State of the Art 20
268 Gap Bridged by the Study 21
269 Theoretical Framework of the Study 22
270 Conceptual Framework 23
271 Definition of Terms 25
272
273
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275 III RESEARCH METHODOLOGY
276 Research Design 28
277 Sources of Data
278 28 Respondents of Study
279 29
280 Research Instrument 29
281 Data Gathering Procedure
282 30 Statistical Treatment of Data
283 30
284 IV OPERATIONS MANAGEMENT PRACTICES OF SELECTED
285 RESORTS IN MALILIPOT, ALBAY
286 Business Profile 32
287 Operations Management Practices 34
288 Financial 34
289 Marketing 35
290 Human Resource 39
291 Problem Encountered on Personnel 40
292 Problem Encountered on Facilities 42
293 Problem Encountered on Services 42
294
295
296 V SUMMARY, FINDINGS, CONCLUSIONS AND
297 RECOMMENDATIONS
298 Summary 44
299 Findings 45
300 Conclusions . 46
301 Recommendations 47
302 Areas for Further Study 47
303 References 48
304 APPENDICES
305 Appendix A. Letter for Respondents 53

306 Appendix B. Survey Questionnaire 58
307
308 CURRICULUM VITAE . 64
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310
311
312 LIST OF TABLES

313
314 NUMBER TITLE PAGE
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316 1 Business Profile 33
317 2 Financial 34
318 3 Marketing 37
319 4 Human Resource 38
320 5 Problem Encountered on Personnel 41
321 6 Problem Encountered on Facilities 41
322 7 Problem Encountered on Services 43
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336
337
338 LIST OF FIGURES

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340 NUMBER TITLE PAGE
341 1 Theoretical Paradigm 24
342 2 Conceptual Paradigm 26
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363 CHAPTER I
364 THE PROBLEM AND ITS SETTING
365 Introduction
366 The resort business is the combination of institutions, supporting human
367 resources, financing mechanisms, and information systems, organizational
368 structures that link institutions and resources that cater to the needs of domestic
369 and foreign travelers. This is a self-contained, commercial establishments, which
370 usually consists of a hotel and a variety of additional services and amenities that
371 provide all the travel needs in one location. Guests usually have access to
372 lodgings, restaurants, bars, entertainment options, recreational activities, and
373 shops, which can all be accessed without leaving the premises. The resort
374 business offers enjoyable moments to visitors. It makes them feel that something
375 worth noticing happens. Vacationers enjoys momentous events. The charm they
376 feel also rewards with genuine monetary gain instead of the persistent efforts to
377 make such places heavenly. This is an ideal business because it has excellent
378 prospects since many people love travelling and luxury resorts are always a
379 popular destination.
380 Malilipot, officially the Municipality of Malilipot is a 4th class municipality in
381 the province of Albay, Philippines. This municipality offers exquisite, classy yet
382 pocket friendly resorts which has the fun that everyone has been looking for and
383 the relaxation it offers. The municipality has resorts that offer hospitable services
384 that they have from the simple cottages that are budget friendly to the rooms that
385 offer luxurious comfort. They offer different activities as well where the customers
386 can choose from such as scuba diving, surfing, kayak, etc.
387 The researchers choose this study to learn what operations management
388 is and how it is done in a business as well as how it can help a business to be
389 productive and profitable.
390 Statement of the Problem
391 This study focused on operations management practices of selected
392 resorts in Malilipot Albay. Specifically, this study sought to answer the following
393 research problems:
394 1. What is the demographic profile of each resort in terms of:
395 a. Form of Ownership;
396 b. Years of Operation;
397 c. Initial Capitalization;
398 d. Number of Employees;
399 e. Average Monthly Revenue; and
400 f. Average Monthly Expenditures?
401 2. What are the operations management practices of selected resorts in
402 terms of:
403 a. Financial;
404 b. Marketing; and
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405 c. Human Resource Aspects?
406 3. What are the issues and concerns encountered by the resorts along:
407 a. Personnel;
408 b. Services; and
409 c. Facilities?
410 Scope and Delimitation

411 The study covered the operations management practices of selected
412 resorts in terms of its financial, marketing, and human resource aspects. It will
413 also cover the issues and concerns encountered by the resorts in terms of their
414 personnel, facilities and services. It is limited to five resorts located in Malilipot,
415 Albay covering the period of 2019-2020. However, other aspects of the
416 operations management such as productivity, profitability and strategy will not be
417 covered by the study.
418 Significance of the Study
419 This study will be deemed beneficial to the following:
420 Resort owners. The study may provide helpful information on how to improve
421 the operations management practices of the resort in order to better serve its
422 clients.
423 Local Government Unit of Malilipot, Albay. The result of this study will help
424 them assess the condition of the resorts located in Malilipot, Albay and how they
425 can help the business owners in boosting the tourism in their municipality.
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426 The Academe. The results of this study could be used as a contribution to the
427 body of knowledge relative to their areas of expertise and thus, will become a
428 resource material for classroom.
429 Present Researchers. The study will provide an understanding on the
430 operations management practices facing the resort industry.
431 Future Researchers. This study can serve as a guide and reference to other
432 researchers for studies covering related to if not the same subject matter giving
433 the future researchers the chance to gather further ideas.
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434 CHAPTER II
435 REVIEW OF RELATED LITERATURE
436 In this chapter the researchers present literature and studies from books,
437 undergraduate theses, journals and other reviewed references to provide a clear
438 view in the Operations Management Practices of Selected Resorts in Malilipot,
439 Albay. This will also present the synthesis of the art, theoretical and conceptual
440 framework to fully understand the research to be done and lastly, the definition of
441 terms for better comprehension of the study.
442 Resorts Business
443 The resort business is the combination of institutions, supporting human
444 resources, financing mechanisms, and information systems, organizational
445 structures that link institutions and resources that cater to the needs of domestic
446 and foreign travelers. The local resort industry is already in its mature stage
447 characterized by overcapacity of pools, available rooms and gradual
448 standardization of prices across categories of services.
449 A resort is a place that is a popular destination for vacations or recreation,
450 or which is frequented for a particular purpose. In North American English, the
451 term “resort” is also used for a self-contained commercial establishment which
452 attempts to provide for most of a vacationer’s wants while remaining on the
453 premises, such as food, drink, lodging, sports, entertainment, and shopping. The
454 term may also be used to identify a hotel property that provides various amenities
455 and usually includes entertainment and recreational activities.

456 The nature of the resort business is seasonality. Tomorrow’s successful
457 resorts will expand and stabilize their revenue stream by reaching into nonpeak
458 seasons for expanded business opportunities. One of the more popular methods
459 is catering to the lucrative business market by offering conference and meeting
460 facilities. The capacity to host conferences makes the resort less weather-
461 dependent, given the realities of a bad season.
462 Resorts depict the best of vacation experiences as the term is associated
463 with luxury products and destinations that caters to the tourists in particular.
464 Some feel that resorts deserve to be studied in their own right, for they are an
465 identifiable subset of the tourism market with their own needs and issues.
466 (Murphy, P. 2009)
467 Almeyda and Dimapalis(2006) made a study about “Accounting System of
468 Misibis Resorts, Estates and Spa in Bacacay, Albay”: A Case Study” stated on
469 the findings that the resort was established on July 19, 2004, joins a number of
470 its sister companies as projects or subsidiaries of the Sunwest Group of
471 Companies registered in the Philippines Securities and Exchange Commission.
472 The available amenities and facilities of the resort are the following: swimming
473 pool, food and beverage, room, shower room, toilet and bath, parking area,
474 communication facilities and shuttle bus. The resort offered overnight
475 accommodation, boating, and use of motorized and nonmotorized beach
476 equipment, swimming, sightseeing and shuttle services. The business fully
477 operational on year 2009 and have future plans and developments. The study
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478 also concluded that the resort offers services, facilities and amenities, which are
479 relatively wide-ranged and highly competitive.
480 Operations Management
481 Operations Management is the management of the resources a business
482 uses to create value. Value creation from resources lies at the heart of all the
483 businesses – those that make consumer products, products for other businesses,
484 or consumer or commercial services. Without resources management, value is
485 never formed, product and services are never sold, thus no profit and the
486 business fail.
487 Operations management deals with the design, planning, organizing, and
488 controlling of resources to provide goods and services so as to meet customer
489 wants and organizational goals. Operations management deals with the
490 operations system of the organization, whether it is manufacturing of service
491 organization. The operation system can be thought of as having three major
492 parts: inputs, processes, and outputs. The inputs to the operations system are;
493 people, materials, equipment, information, money, and energy. These ingredients
494 are necessary for operations to take place. The processes are the essence of the
495 operation system. They deal with the transformation of inputs to outputs. The
496 outputs of the operations system result from the transformation of the inputs by
497 the processes and can be either goods or services.
498 The concept of operation management applies to all productive
499 organizations across the world. Being a diversified topic, the aspect is recognized
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500 as one of the most crucial factors that affect decision-making and developmental
501 processes. Apart from a focus on production and value addition processes, the
502 topic highlights the application of tools and various strategies. Moreover, supply
503 chains, logistics, marketing, financing, and delivering management all form part
504 of the widely spread concept as well. It is noted that in comparison to the present
505 times, the future will present business firms with more developed resources.
506 (Krajewski, et.al., 2013)
507 Operations management oversees the process of transforming resources
508 into goods and services. In the service sector, service providers need to satisfy
509 the needs of the customers. There are three specific functions of the service
510 providers: Intangibility where the service companies provide intangible products
511 such as banking, entertainment, or education. Customization are often to satisfy
512 the specific needs of a customer. Lastly, customer contact where the satisfaction
513 of a customer to a product would be determined in part by the service provided.
514 (Skripak 2016)
515 Begino and Besmonte (2014) made a study about “Operations
516 Management Practices in Sto. Domingo, Albay” where they focused on the
517 operations management in terms of personnel, facilities and services. The study
518 revealed that the resorts surveyed has a satisfactory rating from the customers
519 but there are some aspects that needs to be improved. The personnel are mostly
520 incompetent and inefficient since they have no sufficient working experience and
521 proper training and they also have lack of interest that resulted in negative
522 attitude towards the customers. The facilities in the resorts are not enough to
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523 accommodate large number of customers during summer season and during
524 calamities, some of the facilities were destructed. The services offered by the
525 selected resorts were limited, minimal and basic. Customer’s expectations are
526 not met or late to respond to the needs of customers.
527 From a corporate perspective, operations management may be defined as
528 the management of the direct resources that are required to provide an
529 organization’s goods and services.
530 Operations Management Practice Aspects
531 Financial
532 Financial usually are money matters or transactions of some size or
533 importance. Financial management means the management and control of
534 money and money-related operations within a business. It is the financial input
535 that goes into general business decisions.
536 Financial management is an integral part of the jobs of managers who are
537 involved in planning, allocation of resources, and control. The principal goal of
538 financial management is to create shareholder value by investing in positive net
539 present value projects and minimizing the cost of financing. (Chandra, P. 2011),
540 Financial management is concerned with financial decision-making within
541 a business entity. This includes maintaining cash balances, extending credit,
542 acquiring other firms, borrowing from banks and issuing stocks and bonds.
543 (Fabozzi, F. J., & Peterson, P. P. 2003),
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544 Marketing
545 Marketing is the process of converting prospective buyers into actual
546 customers by communicating complete information of the product or services to
547 the customer. The key elements which are the secret to a successful marketing
548 practice are thorough market survey and research, framing a
549 competitive strategy, designing a realistic marketing plan and implementing
550 different tactics to execute the plan.
551 Marketing is an ongoing practice to capture customer’s attention towards a
552 product or service. It is the core of all the business practices, without which any
553 business will prove to be a colossal failure.
554 Marketing is working with markets attempting to actualize potential
555 exchanges, which is directed at satisfying the needs and wants through the
556 exchange processes. (Kotler 2000),
557 According to the study of Labini and Rodriguez (2013) entitled “Marketing
558 Strategies of Selected Hotels in Legazpi City,” marketing is a management
559 orientation with the key task to determine the needs and wants of the target
560 market of an organization to deliver the desired satisfaction more effectively and
561 efficiently than their competitors. Consequently, all of the services provided by
562 the companies must be devoted to finding out and satisfying what the customers
563 wants while still making a profit over the long run.
564 Marketing Mix
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565 Marketing mix are the tools utilized by a business to achieve marketing goals and
566 to reach out to potential customers. Marketing professor E. Jerome McCarthy
567 proposed in 1960 the 4 P’s of marketing: Product, place, price and promotion. It
568 was made more accessible and known by Phillip Kotler. These four elements
569 helps define a business’ marketing options to meet customer needs or demand.
570 Product
571 A product is the item offered for sale. A product can be a service or an item.
572 Every product is made at a cost and each is sold at a price. In the hospitality
573 industry, product is not just a tangible object. The product is extended to include
574 the following: experiences, people, places, and ideas. Customers decide where
575 to visit, where to stay, what to eat, and what entertainment they wish to see. The
576 product is the first element of the marketing mix, and it affects the other three
577 elements due to its nature and attributes. Product can vary in terms of its
578 attributes and features based on the dissimilarity of the target market in terms of
579 the variance of the needs and wants that makes up the market components and
580 market environment. (Mathieu 2001)
581 Price
582 The price of an item or service is the amount of money charged for it. It is also
583 the amount of money that a consumer must spend in order to get a product or
584 service. The price is the second element which is affected by the purchasing
585 power of the customer and is considered as the critical element in the buying
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586 decision. Price is the amount the consumer must exchange to receive an
587 offering. (Singh 2012)
588 Place
589 The place is the mechanism through which goods or services are moved from
590 the provider or manufacturer to the consumer (Goi, 2009). It includes distribution
591 channels, warehousing facilities, mode of transportation, location, assortment,
592 convergence, logistics and inventory control management. (Sing,2012)
593 Promotion
594 Promotion is a marketing tool, used as a strategy to communicate between the
595 sellers and buyers. Through this, the seller tries to influence and convince the
596 buyers to buy their products or services. It assists in spreading the word about
597 the product or services or company to the people. The company uses this
598 process to improve its public image. This technique of marketing creates an
599 interest in the mindset of the customers and can also retain them as a loyal
600 customer.
601 The promotion is the most powerful among the elements of the marketing
602 mix. It means to persuade and communicate with the target market by identifying
603 the needs of the target segment to buy the company’s products or avail their
604 services. The promotion concept includes all marketing activities used to inform,
605 persuade, and remind the target market about a firm and its products or services,
606 in such a way as to build a favorable image in the mind of the customer.
607 (Sidhanta and Chakrabarty, 2010)
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608 Human Resource
609 Human resources is used to describe both the people who work for a
610 company or organization and the department responsible for managing all
611 matters related to employees, who collectively represent one of the most
612 valuable resources in any businesses or organization. The term human
613 resources was first coined in the 1960s when the value of labor relations began
614 to garner attention and when notions such as motivation, organizational behavior,
615 and selection assessments began to take shape in all types of work settings.
616 Human resource management is a contemporary, umbrella term used to
617 describe the management and development of employees in an organization.
618 Also called personnel or talent management, human resource management
619 involves overseeing all things related to managing an organization’s human
620 capital.
621 The personnel or human resources department as a staff unit adviser
622 helps and assists the managers and supervisors in their personnel functions. The
623 responsibility of the personnel administration in the firm – that of dealing the
624 employees including what work to do, how, why, when, and where to do it and
625 the matters relating to their day-to-day relationships at their places of work –
626 belongs to the operating foremen, supervisors and lie executives.
627 According to the study of Tade and Manzanades (2013) entitled “Human
628 Resource Management Practices of Selected Fast Food Outlets in Legazpi City,”
629 human resource is concerned with people at work and their relationships within a
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630 company. It seeks to bring together and develop into an effective organization
631 the men and women who make up the company, enabling each of them to make
632 their own best contribution to its success. Human resource seeks to provide fair
633 and satisfying work for the employed.
634 Employees with dedication and meaningful work enables them to realize
635 how valuable they are within the organization and makes them engaged. Bolman
636 and Deal (2014) suggested there is an opportunity for employees’ autonomy
637 when self-determination theory (SDT) is leveraged, and furthermore, employees
638 can influence those around them. This influence transcends to the benefits of
639 intrinsic rewards. Meaningful work will allow for an increase in employees’
640 participation. However, it does not guarantee that the employee will be engaged.
641 The need for autonomy, intrinsic rewards, and influence are required to achieve
642 employee engagement.
643 According to the study of Begino and Besmonte (2014) entitled
644 “Operations Management Practices in Sto. Domingo, Albay” as recommended by
645 Barcelona et.al., study about “A Proposed Strategic Management Information
646 System for Dhio Endheka Spring Resort in Tabaco City,” the resorts should
647 conduct a periodic customer evaluation or survey to determine the client’s
648 assessment or feedback of the services offered. This would help them identify
649 and determine weak areas and endeavors to introduce improvements or
650 changes. Strict hiring policies standards should be established and implemented.
651 Seminars and trainings should be conducted at least twice a year.
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652 Service
653 A service is any activity or benefit that one party can offer to another,
654 which is essentially intangible and does not result in the ownership of anything.
655 Its production may or may not be tied to physical product. (Armstrong et.al.,
656 2012).
657 Services are all around us. Service as a core product, that is, the
658 commercial outputs of a service organization such as a bank account, an
659 insurance policy or a holiday. Service as product augmentation, is any peripheral
660 activity designed to enhance the delivery of a core product. Given the intangible
661 nature of services, they cannot be inventoried, stored, warehoused or reused.
662 (Gilmore A. 2003).
663 Customer satisfaction is the result of a customer’s comparison of
664 perceived quality and actual service performance. (Abd-El-Salam, et al., 2013)
665 and Chen 2010).
666 The residual of economic activities, conventionally denoted as services,
667 encompasses integral parts of the history of industrial capitalism. Services are
668 often conceptualized as parts of a ‘structured environment’, or as parts of a value
669 chain, centering around a core of implicitly assumed manufacturing activities.
670 Services are important not only because of their bulk in European economies but
671 because of their increasing importance in innovation systems.
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672 The spectrum of services ranges between the degree of intangibility and
673 tangibility of the offerings delivered to the user. Some offerings are clearly
674 services like enjoyment of movie, art exhibition or an athletic event.
675 Some of the service offerings also have the product component like the
676 buying of contact lenses also requires proper eye examination and evaluation of
677 the vision parameters are the offerings of the service in the process.
678 The inseparability of the buyer and service provider may be seen on many
679 occasions while designing and delivery of the services. This is called as
680 simultaneity. The services cannot be stored, warehoused or otherwise kept on
681 hand for sometimes when the demand is high. The services are also time-
682 sensitive as they cannot be back ordered. The services are largely need-based
683 and called for immediate attention or delivery to the customer.
684 A service is the action of doing something for someone or something. It is
685 intangible where it has no physical presence. A service tends to be an
686 experience that is consumed at the point where it is purchased and cannot be
687 owned since it is quickly perishable.
688 A service is an activity which has some element of intangibility associated
689 with it, which involves some interaction with customer with the intention to satisfy
690 them. Customer satisfaction is a popular concept in several areas like marketing,
691 consumer research, economic psychology, welfare-economics, and economics.
692 The most common interpretations obtained from various authors reflect the
693 notion that satisfaction is a feeling resulting from evaluation process of what has
16
694 been received against what was expected, including the purchase decision itself
695 and the needs and wants associated with the purchase.
696 A change in condition may occur and production of the service may or
697 may not be closely associated with a physical product. It has a wide variety of
698 services such as advertising, marketing, research, banking, insurance, computer
699 programming, legal and medical advice for business and professional services
700 and services provided by professionals but consumed for reasons not of
701 business, rather for leisure, recreation, entertainment, and fulfillment of
702 psychological and emotional needs such as education and fine arts.
703 Facilities
704 One can imagine how a business performs its activities without the
705 necessary facilities to support such activities. According to Alexander (1999),
706 facilities in a business context are the premises and services required to
707 accommodate and facilitate business activity. Therefore, facilities include the
708 building itself where business activities are conducted and where hardware such
709 as equipment, tools and furniture are located. Because it includes the equipment,
710 and tools, it has direct significance to product or service development. The
711 quality of the products and services that a business creates depends so much on
712 the functionality and performance of its facilities. Additionally, the building itself
713 and the related systems (e.g. HVAC system) should be designed based on its
714 identified function. For example, the design and function of a hospital building is
715 definitely different from the design and function of an industrial building and will
17
716 depend on the type of equipment that will be put into it and the people that will
717 use the building.
718 The concerns therefore of facility management encompasses the
719 management of the above-mentioned facilities. Traditionally, facility management
720 was concerned with the ‘hardware’ such as the buildings, furniture and
721 equipment (Becker, 1990); Cotts & Lee, 1992). However, Alexander (1999) and
722 Then (1999) later included the ‘software’ such as people, process, environment,
723 health and safety in the responsibility and scope of facility management. This
724 definition suggests that facility management should be concern not only in the
725 physical assets but also in the workplace itself where people and process interact
726 with the physical assets and the results of such interactions which involved the
727 health and safety of the people and the environment of the organization.
728 Moreover, Becker (1990) further defines facility management as the
729 building in use, the planning, design and management of occupied buildings and
730 their associated building systems, equipment and furniture to enable and to
731 enhance the organization’s ability to meet its business or programmatic
732 objectives. Cotts & Lee (1992) define facility management as the practice of
733 coordinating the physical workplace with the people and work of the organization,
734 integrating the principles of business administration, architecture, and the
735 behavioral and engineering sciences.
736 For Alexander (1999), facility management is the process by which an
737 organization delivers and sustains agreed level of support service in a quality
18
738 environment at appropriate cost to meet the business need while for Then
739 (1999), it is a hybrid management that combines people, property and process
740 management expertise to provide vital services in support of the organization.
741 Tay and Ooi (2001) provide a broader definition of facility management as the
742 integrated management of the workplace to enhance the performance of the
743 organization.
744 Synthesis of the State of the Art
745 The reviewed literature expressed some of the ideas on what operations
746 management is and other topics that are related to the study – resorts business,
747 financial aspect, marketing aspect, human resource, service, and facilities. It
748 discussed the operations management of resorts based on their financial,
749 marketing, and human resource aspects. The operations management is the
750 management of resources a business uses to create value. The financial aspect
751 deals with the funds, expenses and revenue of a business. The marketing
752 aspect explains the marketing mix of the business to satisfy the needs and wants
753 of the customers. The human resource aspect is explained as the people who
754 works in an organization responsible for managing all matters of employees in a
755 business. The facilities are the equipment and tools that is used to facilitate
756 business activity. The services of the resort industry are the actions the
757 employees does for the customers. The resorts deserved to be studied for they
758 are a known part of tourism with their own needs and wants. The stated literature
759 gathered and reviewed by the researchers provided them with baseline
19
760 information and fruitful insights and contributed to the conceptualization of the
761 study.
762 Gap Bridged by the Study
763 Different studies were gathered by the researchers. The related studies
764 focused on the operations management practices which provides the
765 researchers knowledge connected to the study. The study of Operations
766 Management Practices in Sto. Domingo Albay by Begino and Besmonte (2014)
767 showed similarity with the researcher’s study focusing on the personnel, facilities,
768 and services. The study of Labini and Rodriguez (2013) entitled Marketing
769 Strategies of Selected Hotels in Legazpi City and the researcher’s study both
770 belong to the hospitality industry but serves different purposes. Hotels focuses
771 more on comfortability while resort is more like an all-in-one destination such as
772 dining, entertainment, shopping, etc. Almeyda et. al. (2006), study about
773 Accounting System of Misibis Resorts, Estates and Spa in Bacacay, Albay: A
774 Case Study have similarity in terms of services offered but differs in the target
775 market and place. The study about “A Proposed Strategic Management
776 Information System for Dhio Endheka Spring Resorts in Tabaco City by
777 Barcelona et.al (2005) showed resemblance as they are in the same hospitality
778 industry but tackled mostly about the strategic information system of a business.
779 The study of Tade and Manzanadez (2013) about Human Resource
780 Management Practices of Selected Fast Food Restaurants in Legazpi City have
781 likeness with the researcher’s study as it also focused on the human resource
782 management however, the difference of the two research was the respondents
20
783 as it focused on the fast food restaurants and the researcher’s study focused on
784 the resorts.
785 Based on the review of related studies, the researchers found out that
786 there are studies on operations management and also on resorts around Albay
787 but there is no study found on Operations Management Practices of Selected
788 Resorts in Malilipot, Albay. This is the gap bridged by the study.
789 Theoretical Framework
790 Henri Fayol is widely regarded as the Father of Modern Management. His
791 management theories that were published in the year 1916, were a major help on
792 the development of management practice throughout the twentieth century. One
793 of his theories was the Five Functions of Management which he labelled:
794 planning, organizing, commanding, coordinating, and controlling.
795 The first one was the planning also labelled as a “plan of action”. This
796 stage is one of the most difficult and the most important. In order to create a plan,
797 the management must consider all resources, trends and future events.
798 Organizing is the next stage where it involves providing everything that is
799 necessary to a plan of action – including financial, marketing and physical and
800 human resource and its activities. The next one is commanding, wherein all
801 employees will be optimized if given concrete instructions with respect to the
802 tasks that must be carried out. Coordinating is the fourth function that aims to
803 create harmony between the management and employees. The last function is
804 the controlling. Controlling what is happening in accordance to the plan. Control
21
805 takes place in a four-step process: establishing performance standards based on
806 the objectives of the organization, measure and report on actual performance,
807 compare results with performance and standards and taking preventive
808 measures as needed.
809 In connection with the study, the researchers adapted the Five Functions
810 of Management by Henri Fayol. To have an effective operations management, a
811 business must have a good and improved operations management.
812 Conceptual Framework
813 This study focused on the operations management practices of the
814 selected resorts in Malilipot, Albay. The figure 2 shows the conceptual framework
815 of the study. The study determined the resorts profile in Malilipot, Albay in the
816 form of ownership, years of operation, initial capitalization, number of employees,
817 average monthly revenue, average monthly expenditures and facilities and
818 services offered. The study also focused on the operations management
819 practices in terms of financial, marketing and human resource. Along with this,
820 the researchers identified the issues and concerned encountered by the resorts
821 in terms of personnel, services and facilities. The recommendations gathered by
822 way of survey questionnaires is only a guideline for the resorts to strengthen their
823 operations.
824 Definition of Terms
825 Operations Management - it is the administration of business practices to
826 create the highest level of efficiency possible within an organization. It is
22
827 concerned with converting materials and labor into goods and services as
828 efficiently as possible to maximize the profit of an organization (Investopedia). In
829 this study, operations management includes all the activities essential to create,
830 design, manage and deliver a product or service.
831 Financial - it is a business function that uses numbers and analytical tools to
832 help managers make better decisions (Smallbusiness.chron). In this study it is
833 used as the transaction involving money.
834 Marketing - it is the activities a company undertakes to promote the buying or
835 selling of a product or service. Marketing includes advertising, selling, and
836 delivering products to consumers or other businesses (Investopedia). In this
837
FIVE FUNCTIONS OF MANAGEMENT
838
23
839
SELECTED RESORTS
840 IN MALILIPOT, ALBAY
841
R
842
E BUSINESS PROFILE
Form of ownership
C Years of Operation
843
O Initial Capitalization
Number of employees
844
M Average Monthly Revenue
Average Monthly
M Expenditures
Facilities
845
E Services
846 N
D
847
A OPERATIONS
MANAGEMENT
848 T PRACTICES
Financial
Marketing
849
I Human Resource
850 O
N ISSUES AND CONCERNS
851 Personnel
S Facilities
Services
852
853
854
FIGURE 2
855 CONCEPTUAL PARADIGM
24
856 study, marketing is the orientation in which a business is focused on determining
857 the needs and wants of the customers using the marketing mix.
858 Human Resource - Human resources (HR) is the division of a business that is
859 charged with finding, screening, recruiting, and training job applicants.
860 (Investopedia). In this study, human resource are the ones responsible for
861 managing all matters related to employees, which is one of the most valuable
862 resources in businesses.
863 Service - Service is defined as someone or something that is intended to provide
864 help to those helping others (YourDictionary). In the study, it is used as an
865 intangible transaction between the owner and the customers.
866 Personnel - personnel are the people who work for a particular company or
867 organization (Britannica). In this study, personnel are the employees, or the
868 manpower needed to run a business and to help the customers.
869 Facilities - are buildings, pieces of equipment, or services that are provided for a
870 particular purpose (Collinsdictionary). In this study, facilities are the equipment
871 used by the customers for leisure and comfort.
25
872 CHAPTER III
873 RESEARCH METHODOLOGY
874 This chapter presents the research method and the tools used in
875 evaluating and analyzing the data gathered. It includes the research method, the
876 source of the data, respondents of the study, research instrument, data gathering
877 procedures, and the statistical tools that will be used in the data presentation and
878 analysis.
879 Research Design
880 The researchers utilized a descriptive method of research. Descriptive
881 method is designed to gather about present existing condition. The data in their
882 study that had been acquired from the respondents were presented and
883 interpreted in tabular form to arrive at specific conclusions. The method of
884 collecting data is through a survey questionnaire.
885 Source of Data
886 This study used the primary and secondary sources of data. The primary
887 sources of data were the response of the five owners and/or managers with
888 sufficient knowledge and experience about the resorts that were selected by the
889 researchers in the municipality of Malilipot, Albay. The secondary data came
890 from the unpublished undergraduate theses, journals and internet that served as
891 references and guides in gathering the data needed.
892
893 Respondents of the Study
894 The respondents of this research were the managers/owners of the five
895 (5) resorts located in the municipality of Malilipot, Albay namely Dos Montes
896 Hillside Spring Resort, Patio De San Jose Resort, PR Palces Resort, Gamboa’s
897 Orchard and Cabulwangan Hill Spring Resort. The owner and/or manager and
898 customers of these beach resorts served as the study’s respondents.
899 Research Instrument
900 This study utilized the use of the questionnaire as major tool in data
901 gathering. The researchers prepared a set of questionnaires for the owners
902 and/or manager of the resorts. The questionnaire for the owners and/or
903 managers of the selected resorts is divided into two parts. The first part surveyed
904 each beach resort’s demographic profile comprising of their form of ownership,
905 years of operation, initial capitalization, and number of employees, average
906 monthly income, average monthly expenditure, facilities and services. The
907 second part of the questionnaire depicts the operation management practices of
908 the beach resorts in terms of financial, marketing, and human resource. For the
909 issues and concerns encountered by the resorts in terms of their personnel,
910 facilities and services, answered the questions. The questionnaire is based solely
911 on the statement of the problem of the study and the related literature and
912 studies. After the retrieval of the survey questionnaire, all the responses of the
913 respondents were summarized, tabulated, and checked for accuracy and
914 consistency.
29
915
916 Data Gathering Procedure
917 To gather data, the researchers first analyzed and finalized the list of the
918 selected resorts. Then, they initiated the study by visiting the selected resorts to
919 ask their permission to be the respondents and seeking who is the authorized
920 person whom the letter should be addressed. After the visit, the researchers
921 wrote a letter signed by the adviser that was addressed specifically to the owners
922 and/or managers, and customers of each respondents asking permission to
923 conduct the study. Upon approval of the letter, the researchers personally
924 handed-in the survey questionnaire to the respondents. The researchers
925 administered the questionnaires to ensure that they were answered correctly and
926 accurately. Upon retrieval of the survey form, the researchers gave some follow
927 up questions regarding the answers of the respondents. The responses were
928 presented in a tabular form and analyzed. The researchers gathered the data
929 and came up with the findings, conclusions and recommendations based on the
930 answers of the respondents.
931 Statistical Treatment of Data

932 After collecting the data needed, the researchers checked, tallied,
933 tabulated as well as interpreted the results of the survey. The study employed
934 descriptive statistical measures such as percentage, frequency, and weighted
935 mean.
30
936 Weighted Mean measured the control tendency that gave different
937 observations on equal weights in accordance with their unequal relative
938 importance. It is the sum of the values in the data group divided by the number of
939 values.
940 A weighted mean of 2.50 – 3.00 in each variable was interpreted as
941 Always Practiced/Encountered and a mean of 1.50 – 2.49 means Sometimes
942 Practiced/Encountered while 1.0 – 1.49 meant Never Practiced/Encountered.
Scale Range Adjectival Rating

3 2.50-3.00 Always Practiced
2 1.50-2.49 Sometimes Practiced
1 1.0-1.49 Never Practiced
943
Scale Range Adjectival Rating

3 2.50-3.00 Always Encountered
2 1.50-2.49 Sometimes Encountered
1 1.00-1.49 Never Encountered
944
31
945 CHAPTER IV
946 OPERATIONS MANAGEMENT PRACTICES OF SELECTED RESORTS IN
947 MALILIPOT, ALBAY
948 This chapter contains the gathered data from selected resorts in Malilipot,
949 Albay in connection with the study. This also examine the result of the survey
950 questionnaire. Additionally, the respondents, both the owners and their
951 respective customers, has also been given assurance that all the response and
952 information is used for the purpose of this research only.
953 1. Business Profile
954 The summary of the profile of selected resorts were based on the data
955 gathered through the questionnaire given to the owner/manager are the
956 following:
957 Table 1 shows the business profile of the resorts. Based on the survey, three
958 of the resorts are in the form of corporation and the other two is in the form of
959 sole proprietorship. Based on the data gathered for the years of operation, two of
960 the resorts has only been a year in the operation and the other three resorts has
961 been operating for 11-12 years so far. For the number of employees, the resorts
962 have more than 10 regular employees. For the initial capitalization of the resorts,
963 majority of them started their business with a capital amounting from 4,000,000-
964 15,000,000 pesos. For the average monthly revenue, majority of the
965 respondent’s revenue amounts from Php 50,000-Php 250,000 pesos. As for their
966 average monthly expenditure, it amounts from Php 30,000-Php 100,000. This
967 indicates that the resorts are performing very well, and they are financially
968 healthy since more revenues are coming in and less expenses are made.
969 Table 1. Business Profile
Patio De San
Dos Montes Cabulwangan
Jose Resort and PR Palces Gamboa’s
Name of Business Hill Side Hill Spring
Convention Resort Orchard
Spring Resort Resort
Center
Form of Sole Sole

Corporation Corporation Corporation
Ownership Proprietorship Proprietorship
Years of
11 12 1 11 1
Operation
Initial
10 million 8 million 4 million 6 million 15 million
Capitalization
35 regular and 5 regular and 5 regular and

No. of Employees 7 employees 20 employees
10 on-call 5 on-call 5 on-call
Ave. Monthly Php 100,000

Did not disclose Php50,000 Php 40 000 Php 250 000
Revenue more or less
Ave. Monthly Php 50,000

Did not disclose Php 30,000 Php 25 000 Php 100 000
Expenditures more or less
970
33
971 2. Operations Management Practices
972 The summary of the Operations Management Practices of selected
973 resorts were based on the data gathered through the questionnaire given to the
974 owner/manager are the following:
Weighted Mean Adjectival Rating

FINANCIAL
Sources of funds:
Earnings from operation 3.00 Always Practiced
Unsecured bank loans 2.20 Sometimes Practiced
Commercial papers 2.00 Sometimes Practiced
Long-term loans 2.80 Always Practiced
All expenditures/disbursements are
approved by the authorized personnel
3.00 Always Practiced
and supported with complete
documents.
Administrative expenses are duly
recorded.
The company prepares an operating
budget periodically.
Conduct an audit of expenditures
periodically.
Overall Mean 2.75 Always Practiced
975 Financial
976 Table 2
977
978
Financial
979
980
981 Legends: C: Cabulwangan Hill Spring Resort
982 A: Patio De San Jose Resort and Convention Center D: PR Palces Resort
983 B: Dos Montes Hill Side Spring Resort E: Gamboa’s Orchard
984
985 Table 2 presents the operations management practices of the resorts based on
986 their financial aspect. Financial is usually concerned with controlling money or
987 of funds of the five resorts are mostly the earnings from their operations and
988 long-term loans. Funding is the fuel that powers a business. No business can live
989 without funds. Throughout the life of a business, money is needed continuously.
990 A business without appropriate and sufficient funds will be in so much debt. The
34
991 table also shows that the expenditures of the five resorts are duly recorded and
992 audited periodically with the support of documents and an operating budget that
993 is made periodically. Consistently reporting and auditing the expenses of the
994 business will help the business maintain control of their finances and promote
995 better financial habits.
996 The data implies that the financial position of the respondents is stable.
997 Having a healthy and stable financial status will help the respondents develop
998 better performance and contribute to the success of the business.
999 Marketing
1000 Table 3 below presents the operations management practices of the
1001 resorts based on their marketing aspects. The marketing mix of all resort is
1002 highly-efficient. According to the study of Labini and Rodriguez (2013), marketing
1003 is a management orientation that determines the needs and wants of the target
1004 market which all of the resorts achieved based on the result. Under promotion,
1005 radio advertisement and brochures are sometimes practiced by the resorts since
1006 it is the traditional way of advertising and most of the people nowadays are using
1007 the modern advertising which according to them, are more customer-oriented.
1008 Promotion is the most important element of the marketing mix. It means to
1009 persuade and communicate with the target market by identifying the needs and
1010 wants of the target segment to avail their services.
MARKETING Weighted Mean Adjectival Rating

Price
Offers periodic/seasonal discounts. 3.00 Always Practiced
Setting reasonable price to reflect the quality of the
product/services.
Setting a price in comparison with competitors. 2.80 Always Practiced
Setting prices according to a targeted profit. 3.00 Always Practiced
Place
35
Accessible to the public 2.40 Sometimes Practiced
The ambiance/comfort is friendly, cozy and classy. 3.00 Always Practiced
There is a wide space for parking and is secured. 2.80 Always Practiced
The surrounding is clean, hygienic and well-maintained. 3.00 Always Practiced
The place is surrounded by cctv camera and there is always
a security guard.
Promotion
Advertising strategy
Print 3.00 Always Practiced
Road sign direction 2.60 Always Practiced
Radio advertisement 2.40 Sometimes Practiced
Brochures 2.00 Sometimes Practiced
Vlogging/Blogging 3.00 Always Practiced
Social media pages 2.80 Always Practiced
Public Relations
Approachable or friendly staff/employee 3.00 Always Practiced
Convenient service 3.00 Always Practiced
Fast and quick service 3.00 Always Practiced
Influence favorable public opinion towards business 3.00 Always Practiced
Overall Mean 2.82 Always Practiced
1011 The data implies that the marketing of the respondents is focused
1012 on meeting the customer needs and wants. From the price of the services, the
1013 place, and the promotion, the respondents always consider what will satisfy their
1014 customers. Once the respondents knew what their customers need, they have to
1015 ensure that the products or services they offer will meet their expectations. With
1016 improved customer satisfaction and innovative products of high quality, the
1017 respondents will increase both their sales and profitability.

Table 3
1018 Marketing
36
HUMAN RESOURCE Weighted Mean Adjectival Rating
Preferred civil status:
Single 3.00 Always Practiced
Married 2.40 Sometimes Practiced
Methods used by the company in hiring/recruiting
employees/workers
Walk-in 3.00 Always Practiced
Referral 2.20 Sometimes Practiced
Advertising 2.00 Sometimes Practiced
Online hiring 2.66 Always Practiced
What are the requirements to be submitted by the
applicants?
NSO Birth Certificate 2.66 Sometimes Practiced
NBI/Brgy/Police Clearance 2.66 Always Practiced
Medical Certificate 2.80 Always Practiced
Application letter 2.80 Always Practiced
Recommendation letter 2.80 Always Practiced
Resume/Bio-data 3.00 Always Practiced
What does your company seek for an employee?
Educational Attainment 2.80 Always Practiced
Possed Skills 3.00 Always Practiced
Work Experience 2.00 Sometimes Practiced
What are the stages an applicant should go through in
the selection process?
Initial Screening 3.00 Always Practiced
Background Investigation 1.00 Never Practiced
Comprehensive interview 3.00 Always Practiced
Physical Exam 2.00 Sometimes Practiced
Final job offers Table 4 3.00 Always Practiced
Overall Mean Human Resource 2.59 Always Practiced
1025 Human Resource
1026 The table above shows the operations management practices of the
1027 resorts in terms of their human resource aspects. According to the study of Tade
1028 and Manzanades (2013), human resource is concerned with people at work and
1029 their relationships within a company. It seeks to bring together and develop into
1030 an effective organization the men and women who make up the company,
1031 enabling each of them to make their own best contribution to the success.
1032 Human resource seeks to provide fair and satisfying work for the employed. The
1033 least method used by the resorts in hiring employees are referrals and
1034 advertising. Resorts A and B do not require their employees to submit NSO birth
37
1035 certificate. All resorts do not conduct background investigation and they seldom
1036 do physical exam.
1037 The data implies that most resorts in Malilipot Albay prefer to have single
1038 employees than married because single people are more flexible, dependable,
1039 and more likely to take risks like moving to a new city to work. It appears that the
1040 resorts prefer to walk in method when hiring employees and mostly requires
1041 resume or biodata. A resume or biodata details the skills and training, work
1042 experience, and education, and most importantly, the accomplishments the
1043 employee have made with past employers. It will also inform the employer of
1044 their career objective or the job they are seeking and communicate in a concise
1045 manner the benefits they will bring to the job if hired. The data also implies that
1046 the resorts give more importance to initial screening, interview and final job offer
1047 stage because it will be their basis to know if the person applying is suitable or
1048 not for the job.
1049 3. Issues and Concerns Encountered
1050 The summary of the issues and concerns encountered of selected
1051 resorts were based on the data gathered through the questionnaire given
1052 to the owner/manager are the following:
1053 Personnel
1054 The table below shows the issues and concerns encountered by the
1055 resorts based on their personnel. The resorts have an excellent performance
1056 when it comes to handling their personnel. The resorts sometimes encounter
38
1057 problems such as lack of interest to work. This implies that the employees are
1058 interested with their work. Some of the resorts encountered the issue of lacking
1059 manpower since they cannot hire more employees because they stated that the
1060 resort’s expenditures are higher than the income. They also never encountered
1061 tardiness of employees. It implies that personnel with dedication and meaningful
1062 work becomes competent. According to Bolman and Deal (2014) there is an
1063 opportunity for employees’ autonomy when the behavior is leveraged, and they
1064 can also influence those around them. Meaningful work will allow for an increase
1065 in employees’ participation however, it does not guarantee that the employee will
1066 be engaged. According to the study of Begino and Besmonte, strict hiring policies
1067 standards should be established and implemented and there should be at least
1068 two seminars and trainings to be conducted per year to avoid having incompetent
1069 and inefficient personnel.
1070 The data implies that employees are the ones who contribute effectively
1071 towards the successful functioning of a business. Employees provide crucial
1072 insights into the overall customer experience.

Table 5
PERSONNEL Personnel
Weighted Mean Adjectival Rating
High turnover of personnel 1.20 Never Encountered

Lack of interest to work 1.00 Never Encountered
No proper trainings for employees 1.00 Never Encountered
Lack of manpower 3.00 Always Encountered
Incompetent and inefficient staff 1.20 Never Encountered
Tardiness 1.40 Never Encountered
Negative attitude or relationship to
1.00 Never Encountered
customers
Poor working condition 1.00 Never Encountered
Overall Mean 1.35 Never Encountered
1073
39
1077 Table 6
1078 Facilities
FACILITIES Weighted Mean Adjectival Rating
High fees for renting (rooms, cottages, etc.) 1.60 Sometimes Encountered
The cleanliness and orderliness of the resort is not
maintained
Insufficient emergency exit 1.00 Never Encountered
Safety and security are not met 1.00 Never Encountered
Lack of rules for using the facilities 1.00 Never Encountered
The cleanliness of washroom or comfort room is not
maintained
Insufficient parking space 1.00 Never Encountered
1082
1083 Facilities
1084 The table above shows the issues and concerns encountered by the resorts
1085 based on their facilities. The result shows that the selected resorts sometimes
1086 encounter high fees for renting rooms and cottages and that they are maintaining
1087 the cleanliness and orderliness while ensuring that the safety and security are
1088 met. The data implies that the room rates and cottages for rent of the resort are
1089 affordable and that the cleanliness and orderliness are maintained, and they
1090 have sufficient emergency exit and their facilities are safe and secured. The
1091 resorts have enough designated space to cater their customers with vehicles.
1092 According to Alexander (1999), facilities in a business context are the premises
1093 and services required to accommodate and facilitate business activity which has
1094 direct significance to product or service development. Facilities include the
1095 building itself where business activities are conducted and where hardware such
1096 as equipment, tools and furniture are located. The quality of the products and
1097 services that a business creates depends so much on the functionality and
40
1098 performance of its facilities. This implies that facilities are important to have a
1099 successful business.
1100 Services
SERVICES Weighted Mean Adjectival Rating
Lack of lifeguard on duty Table 7 1.00 Never Encountered
Food and drinks offered are not available Services 1.40 Never Encountered
Delayed delivery of services. 1.00 Never Encountered
Unequal treatment of employees to the guests 1.00 Never Encountered
The food served tasteless 1.00 Never Encountered
High service rates. 1.40 Never Encountered
Not having an answer to the customer’s queries 1.00 Never Encountered
Failing to understand what the customer wants 1.00 Never Encountered
1101

1105
1106 Indicated in the table above are the issues and concerns encountered by
1107 the resorts based on their services. One of the resort’s high service rates is not at
1108 par considering that they lack lifeguard on duty and the food and beverages
1109 offered are not always available. The other resorts have low service rate but the
1110 lifeguard on duty is present and the foods and beverages are always available
1111 inside the resort. According to Armstrong et al., (2012), a service is any activity or
1112 benefit that one party can offer to another, which is essentially intangible and
1113 does not result in the ownership of anything. Its production may or may not be
1114 tied to physical product. The service is tied with the customer satisfaction. Abd-
1115 El-Salam, et al., (2013) and Chen (2010) suggest that customer satisfaction is
1116 the result of a customer’s comparison of perceived quality and actual service
1117 performance.
41
1118 The data implies that the resort management handle the complaints of the
1119 customers properly, and they render a good quality service.
42
1120 CHAPTER V
1121 SUMMARY, FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
1122 This chapter presents the summary, findings, conclusions and
1123 recommendations of the study as result of interpretation and analysis of data
1124 gathered through the questionnaire given. It also includes areas of further study
1125 that can be used for future researchers.
1126 Summary
1127 The main objective of this study was to determine the operations
1128 management practices of the selected resorts operating in Malilipot, Albay.
1129 Specifically, the following questions were answered starting from the
1130 demographic profile of the respondents, the operation management practices of
1131 the resorts in terms of financial, marketing and human resource, and the issues
1132 and concerns encountered by the resorts along personnel, services and facilities.
1133 The main respondents of this study were the owner/manager and
1134 customers of the selected resorts in Malilipot, Albay. The main instrument used in
1135 gathering the data was the survey questionnaire. The questionnaire for the
1136 selected resorts consisted of three parts. Part I focused on the profile of the
1137 resorts in Malilipot, Albay. The second part dealt with the operations
1138 management practices of the resorts in terms of financial, marketing and human
1139 resource aspects. Part III dealt with the issues and concerns encountered by the
1140 resorts in terms of personnel, services and facilities. The questionnaire for the
1141 customers focused on their satisfaction on the services of the selected resorts in
1142 Malilipot Albay. Weighted mean is the statistical measures tool used for analysis
1143 and interpretation of the results of the study.

1144 Findings
1145 From the gathered data and analyzed data, the following findings were
1146 made. The resorts picked by the researchers as respondents are Dos Montes
1147 Hillside Spring Resort, Patio De San Jose, Cabulwangan Hill Spring Resort, PR
1148 Palces Resort and Gamboa’s Orchard. Three resorts are corporation and the rest
1149 are sole proprietorship. Two resorts are new in the resort business while three of
1150 them are in the industry for more than ten years. The average initial capitalization
1151 was Php 8.6 million. One of the resorts did not disclose their average revenue
1152 and expenditure while the average revenue of the four resorts is Php 72,500 and
1153 the average expenditure is Php 38,750. The midpoint number of employees is
1154 eighteen. For the financial aspect of the resorts, the resorts are financially
1155 healthy. The funding of the resorts usually comes from their earnings and loans.
1156 They are also auditing and budgeting periodically. Their expenditures are
1157 recorded duly. In terms of the marketing aspect, the marketing of the five resorts
1158 are highly efficient. They always consider the preferences of their customers. The
1159 resorts mostly use social media as their advertising platform since it is the most
1160 used platform nowadays. As for their human resource aspect, the five resorts
1161 prefer walk-in hiring than any other way of hiring employees. Most of the resorts
1162 do not require their employees to submit their birth certificate. The resorts do not
1163 conduct background investigation and they seldom do physical exam. In terms of
1164 personnel the issues and concerns were all about the incompetency and
1165 inefficacy of the staffs that led to the high turnover of the personnel. Under
1166 services, one of the resorts have high service rate that is not at par considering
45
1167 that they lack lifeguard on duty and the food and beverages offered are not
1168 always available compared to the other resorts which has low service rate but the
1169 lifeguard on duty is present and the foods and beverages are always available
1170 inside the resort. For the facilities, the result shows that the resorts are
1171 maintaining the cleanliness and orderliness while ensuring that the safety and
1172 security are met. The resorts have enough designated space to cater their
1173 customers with vehicles. However, one resort has high fees for renting rooms
1174 and cottages since it is not just a resort but also a convention center that can
1175 cater big events like weddings, birthdays, etc.
1176 Conclusion
1177 Based on the findings of the study, the following conclusions were drawn.
1178 Based from the profile of respondents, resorts in Malilipot, Albay were mostly
1179 corporation and operated for over 10 years with an average initial capitalization
1180 of Php 8.6 million. One of the resorts did not disclose their average revenue and
1181 expenditure while the average revenue of the four resorts is Php 72,500 and the
1182 average expenditure is Php 38,750. The operations management practices of the
1183 respondents based on their financial, marketing and human resource yielded
1184 positive results. The resorts are outstanding in handling and stabilizing their
1185 finances. The marketing aspect of all resorts is highly-efficient. Thus, larger
1186 number of customers is expected to enter the business. The human resource is
1187 known as the personnel or talent management of the business. The management
1188 see to it that they pick the most deserving employee by choosing them based on
1189 the work experience, skills and educational background. The resorts never rely
46
1190 on the civil status as their basis in hiring the employees. Majority of the
1191 respondents do not often encounter issues and concerns. The issues they
1192 encounter are connected to the inefficacy of the personnel and availability of the
1193 food and drinks in their respective resorts when it come to their service. No
1194 issues and concerns encountered when it comes to the facilities, as they always
1195 involve the health and safety not only for their employees but for their customers
1196 also.
1197 Recommendation
1198 Based on the findings and conclusions drawn, the following
1199 recommendations are made. The resorts should have an off-season promo to
1200 attract more customers even if it is not peak season as it can help to increase
1201 their revenue. Two of the resorts surveyed were far from the main highway which
1202 makes it hard for the customers who are commuting to reach the resort. The
1203 resorts should cooperate with the tricycle association in the barangay to at least
1204 give the contact numbers of the drivers to them so that the customers can reach
1205 them any time of the day. The resorts should have enough stock of food and
1206 drinks during peak season so that they can cater all the needs of the customers.
1207 Areas for Further Study
1208 1. Risk Management Practices of Selected Resorts in Malilipot Albay
1209 2. Financial Management Practices of Selected Resorts in Malilipot Albay
1210
47
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1294 Rubin, E.V. Exploring the Links Between Procedural Fairness and Union
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1300 Schreyer, P., & Pilat, D. Measuring productivity. OECD Economic studies, 33(2),
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1303 Skripak, S. (2016), “Fundamentals of Business”
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1305 Sison, Perfecto S., M.A., M.P.A., Personnel and Human Resource Management,
1306 Sixth Edition p.40
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1308 Tade and Manzanadez, “Human Resource Management Practices of Selected

1309 Fast Food Restaurants in Legazpi City”, Undergraduate Thesis. Divine
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1312 Tangen, S. Understanding the Concept of Productivity. In Proceedings of the 7th
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1316 https://www.britannica.com/topic/tourism
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1318 https://www.myaccountingcourse.com/accounting-dictionary/service-business
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1321 productivity/
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1323 important
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1325 management.htm
1326 https://www.businessmanagementideas.com/service-marketing/what-is
1327 service/20967
1328 https://www.onlinelibrary.wiley.com/doi/full/10.1002/sd.2133
1329 https://www.smartcapitalmind.com/what-is-a-service-business.htm
1330 https://hbr.org/2007/09/demystifying-strategy-the-what
1331 https://www.economicsdiscussion.net/marketing-2/service/service/32466
1332 https://www.officialgazette.gov.ph/constitution/the-1987-constitution-of-the-
1333 republic-of-the-philippines/the-1987-constitution-of-the-republic-of-the
1334 philippinesarticle-xiii/
1335 https://marketing-insider.eu/what-is-a-price/#What_is_a_Price_
1336 _Definition_of_Prices
1337 https://byjus.com/commerce/what-is-promotion/
1338 https://www.humanresourcesedu.org/what-is-human-resources/
1339 https://theinvestorsbook.com/marketing.html
51
1340
1341
1342
1343
1344
1345
1346
1347
1348
1349
1350
1351
1352 APPENDICES
1353
1354
1355
1356
1357
1358
1359
1360
1361
1362
1363
1364
1365
1366
1367
52
1368
1369
1370
1371
1372
1373 APPENDIX A
1374 (Letter to Conduct the Study)
1375 June 2021
1376
1377 Ricardo De Jesus
1378 In-Charge
1379 Dos Montes Spring Resort
1380
1381
1382 Dear Sir/Madam:
1383
1384 We are 3rd year Bachelor of Science in Management Accounting students of
1385 Divine Word College of Legazpi. One of the final requirements for graduation is
1386 to prepare and defend an undergraduate thesis, relative to Business
1387 Management and Accounting.
1388
1389 In view of this we have chosen your company as among our respondents on the thesis
1390 entitled “Operations Management Practices of Selected Resorts in Malilipot, Albay.”
1391
1392 Should this letter request be favorably granted, we will be glad to schedule the
1393 administration of questionnaire and possible interview for our data requirement.
1394 Rest assured that all the data gathered would be treated with utmost
1395 confidentiality and will be used only for academic purposes.
1396
1397 Thank you very much for your kind
1398 consideration. Respectfully yours,
1399
1400 Fria Mae A. Abellano Maree Kassandra C. Caceres
1401 BSMAC Student BSMAC Student
1402
1403 Noted by:
1404
1405
1406 Miriam K. Manalo, Ed.D Anne Tablizo, BSC-
1407 Econ, CFMP Class Adviser Thesis Adviser
1408
1409
53
1410
1411 APPENDIX A
1413 June 2021
1414 Wilson Basallote

1415 Operations Manager
1416 Cabulwangan Hill Spring Resort
1417
1418
1420
1425
1428
1433
1436
1439
1440 Noted by:
1441
1442
1443 Miriam K. Manalo, Ed. Anne Tablizo, BSC-Econ, CFMP
1444 Class Adviser Thesis Adviser
1445
1446
1447
1448
1449
54
1450
1451
1452
1453
1454
1455 APPENDIX A
1457 June 2021
1458
1459 Daniel Jose R. Bombales
1460 President
1461 Patio De San Jose Resort
1462
1463
1465
1470
1473
1478
1481
1484
1485 Noted by:
1486
1487
1488 Miriam K. Manalo, Ed.D Anne Tablizo, BSC-Econ, CFMP
1490
1491
1492
1493
1494
55
1495
1496
1497
1498
1499 APPENDIX A
1501 June 2021
1502
1503 Manager
1504 PR Palces Resort
1505
1506
1508
1513
1516
1521
1524
1527
1528 Noted by:
1529
1530
1533
1534
1535
1536
56
1537
1538
1539
1540
1541 APPENDIX A
1543 June 2021
1544
1545 Manager
1546 Gamboa’s Orchard
1547
1548
1550
1555
1558
1563
1566
1569
1570 Noted by:
1571
1572
1575
1576
1577
1578
1579
57
1580
1581
1582
1583 APPENDIX B
1584 (Research Questionnaire)
1585
1586 SURVEY QUESTIONNAIRE
1587 “Operations Management Practices of Selected Resorts in Malilipot, Albay”
1588
1589 BUSINESS PROFILE

1590
1591 Name of Business: ____________________________
1592 Form of Ownership: ___________________________
1593 Years of Operation: ___________________________
1594 Initial Capitalization: ___________________________
1595 Number of Employees: _________________________
1596 Average Monthly Revenue/Income: _____________
1597 Average Monthly Expenditures: ______________
1598
1599 Facilities: Services:
1600 ___Slide ___Food and drinks
1601 ___Swimming pool ___Overnight accommodation
1602 ___Function hall ___Events (weddings, birthdays,
1603 etc.)
1604 ___Cottages ___Bar and restaurant
1605 ___Washroom ___Spa
1606 ___Shower room ___Sports activities
1607 ___Gym ___Souvenir items
1608 ___Parking space ___Others (please specify)
1609 __________
1610 ___Beach
1611 ___Hotel rooms
1612 ___Others (please specify) _____________
1613
1614
1615
58
1616 OPERATIONS MANAGEMENT PRACTICES
1617
1618 This questionnaire attempts to determine the Operations Management
1619 Practices of Selected Resorts in Malilipot, Albay. Please use the following
1620 scales:
1621
1622 1- Never Practice 2 – Sometimes Practice 3 – Always Practice
1623
FINANCIAL 1 2 3
1. Sources of funds:
a. Earnings from operation
b. Unsecured bank loans
c. Commercial papers
d. Long-term loans
1. All expenditures/disbursements are
approved by the authorized personnel and
supported with complete documents.
2. Administrative expenses are duly recorded.
3. The company prepares an operating
budget periodically.
4. Conduct an audit of expenditures
periodically.
1624
1625
MARKETING 1 2 3
1. Price
a. Offers periodic/seasonal discounts.
b. Setting reasonable price to reflect the
quality of the product/services.
c. Setting a price in comparison with
competitors.
d. Setting prices according to a targeted
profit.
e. Others, please specify
2. Place
a. Accessible to the public
b. The ambiance/comfort is friendly, cosy and
classy.
59
c. There is a wide space for parking and is
secured.
d. The surrounding is clean, hygienic and well-
maintained.
e. The place is surrounded by cctv camera and
there is always a security guard.
b. Others, please specify
3. Promotion
a. Advertising strategy
Print
Road sign direction
Radio advertisement
Brochures
Vlogging/Blogging
Social media pages
b. Public Relations
Approachable or friendly staff/employee.
Convenient service
Fast and quick service
Influence favorable public opinion towards

business
Others, please specify
1626
HUMAN RESOURCE 1 2 3
1. Preferred civil status:
a. Single
b. Married
2. Methods used by the company in hiring/recruiting
60
employees/workers
a. Walk-in
b. Referral
c. Advertising
d. Online hiring
3. What are the requirements to be submitted by the
applicants?
a. NSO Birth Certificate
b. NBI/Brgy/Police Clearance
c. Medical Certificate
d. Application letter
e. Recommendation letter
f. Resume/Bio-data
4. What does your company seek for an employee?
a. Educational Attainment
b. Possed Skills
c. Work Experience
d. Others, please specify
5. What are the stages an applicant should go through

in the selection process?
a. Initial Screening
b. Background Investigation
c. Comprehensive interview
d. Physical Exam
e. Final job offers
1627 ISSUES AND CONCERNS ENCOUNTERED BY THE RESORT
61
1628 Please check the number which corresponds to your answer using the
1629 rate scale
1630 Rating: 1 – Never Practice 2 – Sometimes Practice 3 – Always Practice
PERSONNEL 1 2 3
1. High turnover of personnel
2. Lack of interest to work
2. No proper trainings for employees
3. Lack of manpower
4. Incompetent and inefficient staff
5. Tardiness
6. Negative attitude or relationship to customers
7. Poor working
8. Others (Please specify)
1631
FACILITIES 1 2 3
1. High fees for renting (rooms, cottages, etc.)
2. The cleanliness and orderliness of the resort is not

maintained
3. Insufficient emergency exit
4. Safety and security are not met
5. Lack of rules for using the facilities
6. The cleanliness of washroom/comfort room is not

maintained
7. Insufficient parking space
SERVICES 1 2 3
62
1. Lack of lifeguard on duty
2. Food and drinks offered are not available
3. Delayed delivery of services.
4. Unequal treatment of employees to the guests
5. The food served tastes bad.
6. High service rates.
7. Not having an answer to the customer’s queries
8. Failing to understand what the customer wants
1632
1633
63
1634 APPENDIX C
1635 (Curriculum Vitae)
1636
1637 PERSONAL BACKGROUND
Name : Abellano, Fria Mae Aycardo
Date of Birth : December 9, 1999
Place of Birth : It-ba, Manito, Albay
Residence : Peñarubia St., It-ba, Manito,

Albay
Civil Status : Single
1638
1639 SCHOLASTIC RECORD
Tertiary : Bachelor of Science in Management Accountancy
Divine Word College of Legazpi
AY 2018-2022
Secondary
Senior High : Divine Word College of Legazpi – SHS Department
Legazpi, City
SY 2016 - 2018
Junior High : Manito National High School
Manito, Albay
SY 2012 - 2016
Primary : Manito Central School
Manito, Albay
SY 2006 - 2012
1640
1641
1642 APPENDIX C
64
1643
1644 (Curriculum Vitae)
1645
1646 PERSONAL BACKGROUND
1647
Name : Caceres, Maree Kassandra Clarianes
Date of Birth : May 19, 2000
Place of Birth : Sto. Domingo Albay
Residence : Villa Maria Compound, San Isidro, Sto.

Domingo Albay
Civil Status : Single
1648 SCHOLASTIC RECORD
Tertiary : Bachelor of Science in Management Accountancy
Divine Word College of Legazpi
AY 2018-2022
Secondary
Senior High : Accountancy, Business and Management
Colegio De Los Baños
AY 2016 - 2018
Junior High : St. Raphael Academy
Legazpi City
SY 2012 - 2016
Primary : Sto. Domingo Central School
Sto. Domingo Albay
SY 2006 - 2012
65
i
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i
2
1650
2
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1 OPERATIONS MANAGEMENT PRACTICES OF SELECTED RESORTS IN

5 An Undergraduate Thesis Presented to the Faculty

6 of the School of Business Management and Accountancy

7 Divine Word College of Legazpi

13 of the Requirements for the Degree of

14 Bachelor of Science in Management Accounting

20 FRIA MAE ABELLANO

21 MAREE KASSANDRA CACERES

29 RECOMMENDATION FOR FINAL ORAL EXAMINATION

31 In partial fulfilment of the requirements for the Degree of Bachelor of

38 ANNE TABLIZO, CFMP

44 In partial fulfilment of the requirements for the Degree of Bachelor of

54 MARIVIC A. ARMARIO, LPT

56 MIRIAM K. MANALO, LPT, Ed.D.

63 RESULT OF THE ORAL EXAMINATION

65 Candidates : FRIA MAE A. ABELLANO

68 Thesis Title : “OPERATIONS MANAGEMENT PRACTICES OF

74 PANEL OF EXAMINERS ACTION TAKEN

76 TRESSA ADELFA M. MORTOLA, CPA, LPT Ph.D. ________________

79 MARIVIC A. ARMARIO, LPT ________________

82 MIRIAM K. MANALO, LPT, Ed.D. ________________

87 ANNE TABLIZO, CFMP

101 Upon the recommendation of the Oral Examination Committee, this

108 MIRIAM K. MANALO, LPT, Ed.D.

113 TRESSA ADELFA M. MORTOLA, CPA, LPT Ph.D.

131 EDITOR’S CERTIFICATION

133 This is to certify that the thesis entitled: “OPERATIONS MANAGEMENT

161 realization of this work:

162 DWCL ADMINISTRATORS, headed by REV. FR. NEILO M.

164 opportunity to experience personal, spiritual and academic growth;

166 School of Business, Management and Accountancy, and chairperson of the

170 research work;

177 The RESPONDENTS – the resorts at Malilipot, Albay without whose

179 been a success;

182 help to the accomplishment this research work;

188 deepest gratitude for His love that endures forever.

190 FMA & MKC

ABELLANO, FRIA MAE AYCARDO ABSTRACT

305 Appendix A. Letter for Respondents 53

312 LIST OF TABLES

319 4 Human Resource 38

320 5 Problem Encountered on Personnel 41

321 6 Problem Encountered on Facilities 41

322 7 Problem Encountered on Services 43

338 LIST OF FIGURES

340 NUMBER TITLE PAGE

341 1 Theoretical Paradigm 24

342 2 Conceptual Paradigm 26

364 THE PROBLEM AND ITS SETTING

366 The resort business is the combination of institutions, supporting human

367 resources, financing mechanisms, and information systems, organizational

372 lodgings, restaurants, bars, entertainment options, recreational activities, and

379 popular destination.

380 Malilipot, officially the Municipality of Malilipot is a 4th class municipality in

389 productive and profitable.

390 Statement of the Problem

391 This study focused on operations management practices of selected