ROLE OF LEADESHIP STYLE WITH THE EMPLOYEE SATISFACTION

IN MILKTEA SHOPS IN SANTA CRUZ, LAGUNA

A Thesis
Presented to the Faculty of
LAGUNA SENIOR HIGH SCHOOL
Provincial Capital,
Santa Cruz, Laguna

In Partial Fulfilment
Of the Requirements of
Practical Research 2 for Inquiries, Investigation and Immersion
Accountancy Business Management

Denmark Olleres Austria

Kristel Cupon Mahupil
Raymart Ramos Palacol
Jhunrynan Gabas Paladin
Alamina Sampaco Saidali
Khyle Sambajon Sandoval
Janella Arianne Talabis
May 2024
 Chapter 1

THE PROBLEMS AND ITS BACKGROUND

Introduction

Employee satisfaction plays a crucial role in the success of any

organization, including milk tea shops. In Santa Cruz, Laguna, where

competition in the food and beverage industry is fierce, ensuring the

happiness and well-being of employees is essential for maintaining

productivity, customer satisfaction, and overall business growth. This

introduction will delve into the significance of employee satisfaction within

the context of managing a milk tea shop in Santa Cruz, Laguna.

Employee satisfaction refers to the level of contentment and

fulfilment that employees experience in their roles within an organization. It

encompasses various factors such as job security, work environment, and

opportunities for growth and development. Existing studies has

consistently shown a strong correlation between employee satisfaction

and organizational performance. Satisfied employees are more likely to be

engaged, motivated, and committed to their work, leading to higher levels

of productivity, quality of service, and customer satisfaction.

In a competitive market like Santa Cruz, Laguna, where milk tea

shops abound, retaining talented employees and attracting new ones is

vital. A workplace with high levels of employee satisfaction becomes an

attractive proposition for potential hires and reduces turnover rates, saving

costs associated with recruitment and training. Employees are the

Frontline ambassadors of a milk tea shop, directly interacting with

customers and shaping their experience. Satisfied employees are more

likely to deliver excellent customer service, resulting in repeat business,

positive word-of-mouth, and enhanced brand reputation.

Fostering employee satisfaction contributes to the development of a

positive work culture characterized by open communication, mutual

respect, and teamwork. Such a culture not only improves employee

morale but also fosters innovation and creativity, driving the business

forward. In conclusion, prioritizing employee satisfaction is not just a moral

imperative but also a strategic necessity for milk tea shops in Santa Cruz

Laguna. By investing in the well-being and happiness of their workforce,

organizations can cultivate a competitive advantage, drive growth, and

establish themselves as employers of choice in the local market.

Employee satisfaction plays a crucial role in the success of any

organization, including a milk tea shop in Santa Cruz Laguna. When

employees are satisfied, they tend to be more motivated, engaged, and

committed to their work. This in turn, leads to higher productivity, better

customer service, and ultimately, increased profitability for the business. In

the context of a milk tea shop, ensuring employee satisfaction involves

various aspects of organizational management. This includes creating a

positive work environment, providing fair compensation and benefits,

offering opportunities for growth and development, and promoting work-life

balance. By prioritizing employee satisfaction, the management can foster

a culture of teamwork, reduce turnover rates, and attract and retain

talented individuals.
 This study aimed to determine the importance of having a employee

job in Santa Cruz Laguna so that they can be aware and make each

other’s job results go well.

Background of the Study

This study is situated within the context of the expanding milk tea

industry in Santa Cruz, Laguna, where the competition among food and

beverage establishments is notably intense. This research is prompted by

the increasing recognition of employee satisfaction as a critical factor in

organizational success, particularly in dynamic sectors like food service.

The geographic focus on Santa Cruz, Laguna, is driven by the rapid

growth and popularity of milk tea shops in the area, presenting unique

challenges and opportunities for business management.

Within this context, the study considers pertinent legal bases

governing labor practices and business operations in the Philippines. This

includes the Labor Code of the Philippines, which delineates employee

rights, fair treatment principles, and labor standards applicable to milk tea

shop operations. Additionally, local business regulations and licensing

requirements inform the study's understanding of the operational

landscape in Santa Cruz, Laguna. The study also recognizes the

significance of employment contracts, policies, and labor laws in shaping

employee-employer relationships within milk tea establishments.

Key contextual factors influencing the study encompass market

competition, evolving consumer preferences, and workforce dynamics

specific to the milk tea industry. The proliferation of milk tea shops

underscores the need for strategic differentiation and effective

management practices to thrive in a competitive market. Moreover, the

study acknowledges the importance of employee retention and

engagement in light of high turnover rates within the industry.

Understanding the role of leadership styles in shaping employee

satisfaction becomes paramount in fostering a positive work environment

conducive to organizational success.

Through an empirical investigation into the relationship between

leadership style and employee satisfaction, this study seeks to provide

actionable insights for milk tea shop managers and leaders in Santa Cruz,

Laguna. By identifying effective leadership approaches that promote

employee satisfaction, the research aims to contribute to organizational

effectiveness, employee retention, and overall business competitiveness

within the local milk tea industry. The findings of this study may serve as a

foundation for implementing targeted interventions aimed at enhancing

leadership practices and fostering a supportive work environment in milk

tea shops, ultimately driving sustainable growth and success.

Theoretical Framework

Customer Value theory, this theory emphasizes the importance of

creating value for customers. In the context of a milk tea shop, employee

satisfaction can enhance their service delivery, leading to improved

customer Value. A study on the milk tea shop based on this theory

highlighted the significance of customer Value in a milk tea shop in Santa

Cruz, Laguna.

Service Quality and Customer loyalty; satisfied employees tend to

provide better services, which can lead to higher customer satisfaction and
loyalty. A research on too busy milk tea shop, presumably affected by the

employees job performance, is a critical factor in achieving customer

loyalty.

In 1975, organizational psychologist Greg R. Oldham and J.

Richard Hackman wanted to figure out why employees lost interest in their

jobs. So, they studied people and their jobs and came up with a universal

model that we still use more than 40 years later- called the job

characteristics model. Oldham and Hackman were looking to reduce the

boredom and monotony that comes from working in a factory setting.

Instead of getting better and more productive as time passed, they found

that employees were becoming bored and unengaged, and their

performance dropped.

This model helps turn jobs around. When Human resources and

management work together with the jobs characteristics model, they

design each job to increase job satisfaction. While it’s impossible to do

away with all boring or monotonous tasks, this model can reduce those

problems.

Expectancy theory suggests that individuals are motivated to

perform if they know that their extra performance is recognized and

rewarded (Vroom, 1964) consequently, companies using performance-

based pay can expect improvements. Performance-based pay can link

rewards to the amount of products employees produced.

Consequently, based on the presented theories, there are some

other people or workers who have been affected by this theory. These
theories demonstrate that if you want to be role model at work, you have to

persevere and get better at work.

Conceptual Framework

The conceptual framework for this study served as the

fundamental structure that portrays the relationships between independent

and dependent variables.

In the first frame of the conceptual framework, the researchers

focused on the independent variables, which includes different leadership

styles such as attentiveness, being responsible, supervisory, and

authoritative. These four is a really big impact to the Generation Z who

likes milk tea. Moreover, it can have a profound impact on their lifestyle

drinks.

The second frame showed the dependent variables, which

consisted of Employee satisfaction such as Pay, Promotion, Benefits, and

Nature of work. One of the main components of an organization’s human

resource initiatives is employee satisfaction. Job satisfaction, according to

Simatwa (2011), is a function that is positively correlated with how well

one’s personal needs are met at work.

Figure 1. Research Paradigm of the Study

Leadership Styles: Employee Satisfaction:

 Attentiveness  Pay

 Being responsible  Promotion

 Supervisory  Benefits

 Authoritative  Nature of work

Statement of the Problem

This study aimed to determine by the job satisfaction on the Organization

commitment. Specifically, it sought to answer the following questions:

1. What is the organization commitment in the level of employee of

milk tea shops in Santa Cruz, Laguna in terms of:

1.1 Attentive;

1.2 Responsible;

1.3 Supervisory; and

1.4 Authority

2. Which following job satisfaction are mostly common in work in terms

of:

1.1 Salary;

1.2 Promotion;

1.3 Benefits; and

1.4 Nature of work?

3. Do job satisfaction significantly influence the organization

commitment in employees of milk tea shops in Santa Cruz, Laguna?

Hypothesis

Social media platform have no significant influence on organizational

commitment of the employees of milk tea shops in Santa Cruz, Laguna.

Significance of the Study

This researcher believed that tis study not only yielded data that was

helpful to her but more so to the following groups of employees and areas

of the employees of milk tea shop system and it’s outside concern:

Employees. In particular, investing in the well-being and

contentment of employees is imperative for every organization,

recognizing their immense value. This strategic endeavor not only

cultivates a favorable work environment but also amplifies efficiency,

ultimately paving the way for sustained prosperity.

Parents. Supportive parents can assist their children in their job

search and career development, enabling them to gain the necessary

confidence and skills to thrive in the workforce. Through offering guidance

and encouragement, parents play a crucial role in helping their kids

achieve their aspirations and pave the way for a promising future.

Manager. To excel as a manager, one must possess a harmonious

blend of leadership acumen, technical proficiency, and interpersonal

finesse. By adopting an effective strategy, you can guide your team

towards remarkable accomplishments and force a prosperous path in the

realm of management.

Customer Experience. Employee satisfaction is closely tied to

customer experience. A content and motivated workforce in a milk tea

shop can positively impact customer service, leading to higher customer

satisfaction, repeat business, and positive word-of-mouth marketing.

Local Economic Impact. Considering the specific location of Santa

Cruz, Laguna, the study can have implications for the local economy. A

thriving milk tea shop with satisfied employees may contribute to job

creation, community engagement, and overall economic growth in the

area. Understanding these dynamics can be valuable for both the

business and the community.

Future Researchers. By exploring uncharted territories in the

educational process, the Researcher can uncover significant areas that

have eluded the attention of their peers. This breakthrough can propel the

Researcher towards the next level of their professional journey.

Scope and Limitation of the study

This study aims to investigate the impact of leadership styles on

employee productivity and job satisfaction in a manufacturing company.

The study will focus on the perceptions and experiences of 5-10 managers

and 15-20 employees within the organization. It will examine how different

leadership styles, such as autocratic, democratic, and laissez-faire,

influence employee performance and morale.

Definition of Terms

Descriptive definitions of pertinent terms related to this study were

as follows:

Affective. When an employee is emotionally committed to their

organization it indicates their desire to remain with the organization. They

usually align with the organizational objectives, perceive themselves as a

good fit for the organization, and experience job satisfaction.

Continuance. This pertains to the extent of an employee's desire to

remain employed within their organization. For employees who exhibit

continuance commitment, their loyalty stems from a necessity to remain

with their current employer. The reasons for this necessity may vary, but

typically stem from a dearth of alternative job opportunities and

compensations vary, but the main reasons relate to a lack of work

alternatives, and remuneration.

Normative. The subject matter pertains to the extent of employees'

perceived obligation to remain with their organization. Employees who

exhibit normative commitment typically possess a belief that they ought to

remain loyal to their respective organizations. Such employees harbor a

conviction that departing from their organization would result in dire

consequences, and experience a sense of remorse regarding the mere

possibility of leaving.

Pay. The satisfaction level of an individual with the process and

amount of direct or indirect monetary rewards received for their work is

commonly referred to as "pay satisfaction" (Ducharme et al., 2005).

Alternatively, it can be described as the overall positive affect or feelings

that individuals have towards their pay (Miceli & Lane, 1991, p.

Promotion. Promotion within an organization signifies the

progression of an lt 12 employee, resulting in improved compensation,

elevated status, increased prospects. heightened responsibilities, and a

superior work environment. This career advancement serves as a source

of motivation and job contentment for all staff members.

Supervisory. The focus of satisfaction in the workplace is on

supervision rather than other factors or individuals. With the transition from

task-oriented management to people-oriented management, the

relationship between supervisors and subordinates has gained significant

importance. Theoretical analysis has identified six variables that impact

satisfaction levels.

Job Security. Employees who feel secure on the job will have a

sense of job stability and effectively contribute to the organization's growth.

Job security is important for employees to have a sense of job satisfaction,

and the right mental stability to keep their jobs.