SENIOR HIGH SCHOOL DEPARTMENT

THE EFFECTS OF TOTAL QUALITY MANAGEMENT- EMPLOYEE’S

RELATIONSHIP TOWARDS CUSTOMER SATISFACTION IN

BEANYARD CAFÉ, CITY OF CABUYAO LAGUNA

A Thesis presented to the Senior High School Faculty of

Green Fields Integrated School

In Partial Fulfillment of the Requirements for Senior High School

Parao, Loraine Claire D.

Bantatua, Jamilla

Antonio, Dominador D.

Jastillana, Renz Jerone L.

Valencia, Jelo C.

2020

CHAPTER 1
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THE PROBLEM AND IT’S BACKGROUND

Introduction

“People forget how fast you did a job but they remember how well

you did it.” Is a quotation by Howard Newton (2011) tells about how high

quality your management is, so people tend to remember it. Everyone has

experience of poor quality when dealing with business organizations. These

experiences might involve in a dry cleaner that has left clothes wrinkled or

stained, poor course offerings and scheduling at your college, a purchased

product that is damaged or broken, or some food deliveries that is often late or

delivers the wrong order. That’s why they need to develop the Total Quality

Service for they to satisfy the customers in their high quality management.

According to Philip Crosby (2009) , Total Quality Management is an

integrated organizational effort designed to improved quality at every level. It

talks about the impacts of meeting the quality expectations as defined by the

customer. Defining quality is not easy as it may seem, because different people

have different ideas of what constitutes high quality. A concept that is aimed at

quality with continuous improvement. In order to make a business viable it has

to be built upon a certain set of values which promote the business, assure

customer that it’s the right choice and attract new customers while retaining

the existing ones. Enhancing Service Quality is often conceptualized as the

comparison of Sservice
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expectations with actual performance perceptions. The

aim of this study is to evaluate theses expectations and perceptions from the

point of view of franchisees in prominent home entertainment franchise

system.

Total Quality Management is use to achieve quality excellence in a

business, it can help a lot of people who mare interested to start their own

business and for those people to know the importance of a good service. This

study will show you what is the most important to enhance service quality in a

business which lead for them to become successful and to be known by a lot of

people. The aim of this business is to expand what we know about enhance

quality service and how it can help the food industry for them to have a good

relationship with the customer. This study will help us to explore more in

business industry that we can share to others who want to learn business and

how will they manage it so they can improve their business for it to grow more.

Background of the Study

Walking on the street of Cabuyao Laguna, There’s a lot of café that

everyone can try, one of the most famous café that can try here is the Beanyard

Café. Base in our research on social media their feeds has a lot of positive

comments that came from those people who visited the café and one of the

comment says that their employee's treated them well.

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In 2017 they build a coffee shop at JP Rizal Street , Poblacion in Cabuyao

Bayan Laguna , the owner of this café try a lot of business before they came up

to have a coffee shop which is a success and the name of of the business is the

Beanyard Café.

Statement of the Problem

This will focus on the importance of Total Quality Management-Employee’s

Relationship towards Customer Satisfaction at Beanyard café in Barangay

Poblacion Dos, city of Cabuyao, Laguna

1. What is the demographic profile of the respondents in terms of:

1.1 Age

1.2 Gender

1.3 Name

2. What are the effects of Total Quality Management in terms of:

2.1 Communication

2.2 Customer’s satisfaction

2.3 Customer’s Loyalty

3. How does the total quality management enhance employee’s relationship

towards customer satisfaction in Beanyard Café City of cabuyao laguna

2.4 Customer focus

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2.5 Employee engagement

2.6 Quality in service

4. Is there any significant effects of Total Quality Management in Enhancing

employee’s relationship towards customer satisfaction?

Theoretical Framework
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Independent Variables

Effects of Total Quality

Management

 Communication
 Customer
Satisfaction
 Customer’s loyalty

Figure 1: Theoretical Framework

Top management commitment and employees empowerment is one of the

most important and vital principle in total quality management, because it is often

assumes to have a strong relationship with customer satisfaction. In TQM

implementation top management commitment in creating an organizational

climate that empowers employees is very imperative. Thus, this can be achieved

with top management commitment in training employees and giving employees

opportunities to be responsible for the quality of their work. TQM strategy brings

about a turnaround in corporate culture as compared to the old traditional system

(Buean-Li 2012)

Conceptual Framework

Dependent Variables

Effects of TQM in
Enhancing Service Quality

 Customer Focus
 Employee
engagement
 Quality in service
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FEEDBACK

Figure 2: Research Paradigm

This framework embodies the specific direction by which the research will

begin by describing the relationshiop between independent and dependent

variables that will identified in the study

Independent variables abide of the research factors applied in conducting

the research regarding the effects of Total Quality Management-Employee’s

relationship and dependent variables will indicate the general view of the situation

as a result in Enhancing Service Quality

This diagram will shows the effects of Total Quality Management

Employee’s relationship and how it can affect in Customer Satisfaction. The

communication, customer satisfaction, and customer’s loyalty are the factors that

can affect in enhancing service quality and this would result with customer focus,

employee’s engagement, and quality in service.

Significance of the Study

This study addressed the effects of Total Quality Management-Employee’s

towards Customer Satisfaction, as it will guide them to improve their service. It also

help other people to know more about Total quality management.

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The researcher believes that this study is beneficial to the following:

Students – in this study students learn more about business because this

study will help them to be more knowledgeable and creative, they’re learning

about business and it will improve on how they will handle a business. And the

students will benefit because they gain more knowledge.

Future Researchers – the study can help them to have more knowledge

or a lot of ideas, informations, facts and etc. that will surely help them in their

study. Probably they will need different perspective for them to understand more

about their topic.

Teachers – It will help them to come up with new ideas especially the

one who was related to this study, that can provide more learning to them. The

teachers will benefit because they need more information for they to teach a lot of

ideas to their students.

Scope and limitation of the study

This study will focus on the importance of customer satisfaction and how

will it affects the customer’s loyalty. The researcher will enlighten the mind of the

people for them to understand the study more clearly.

The main location of this study will be in JP Rizal Street, Poblacion City of

Cabuyao laguna. The target respondents is the customers in Beanyard to gather

more data and Swe
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will use this as a useful resources for the study to be more

effective.

The conduct of this study will be limit in cabuyao bayan laguna and the

researcher will conduct their study to fifty (50) customers that always eat in

beanyard cafe. To understand the importance of customer satisfaction and how will

it affects the customers’ loyalty.

Definition of terms

Communication- connecting people or places in business, it is a key

function of management--an organization cannot operate without communication

between levels, departments and employees.

Customer focus- Strong contributor to the overall success of a business

and involves ensuring that all aspects of the company put its customers' satisfaction

first. Also, having a customer focus usually includes maintaining an effective

customer relations and service program.

Customer loyalty- Positively related to customer satisfaction as happy

customers consistently favor the brands that meet their needs. Loyal customers are

purchasing a firm’s products or services exclusively, and they are not willing to

switch their preferences over a competitive firm.

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Customer satisfaction- indicates the fulfillment that customers derive

from doing business with a firm. In other words, it’s how happy the customers are

with their transaction and overall experience with the company.

Employee engagement -is a workplace approach resulting in the right

conditions for all members of an organization to give of their best each day,

committed to their organization’s goals and values, motivated to contribute to

organizational success, with an enhanced sense of their own well-being.

Management- the organization and coordination of the activities of a

business in order to achieve defined objectives.

Quality- is the ongoing process of building and sustaining relationship

by assessing anticipating and fulfilling stated and implied needs.

Quality Management- is the act of overseeing all activities and tasks

needed to maintain a desired level of excellence. This includes the determination

of a quality policy, creating and implementing quality planning and assurance,

and quality control and quality improvement.

Service quality- An assessment of how well a delivered service

conforms to the client's expectations. Service business operators often assess the

service quality provided to their customers in order to improve their service, to

quickly identify problems, and to better assess client satisfaction.

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CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents related literature and studies of different local and

foreign authors significant to the study. The researchers believe that previous

related studies would give insights on how to interpret the results of the current

study.

Foreign and Local Literature

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This study reviews the literature on total quality management employee’s

relationship towards customer satisfaction, to encourage and support individuals to

acquire and apply total quality management, with anticipated positive

consequences for business performance. It also review to establish that is possible

to identify a range of total quality management associated with identification of

opportunities for performance gains and growth for small business.

Total Quality Management Employee’s Relationship

Ahmed et al. (2010) found a significant and positive relationship between

four dimensions of service quality (tangibles, reliability, responsiveness and

assurance) and customer satisfaction. In their study, empathy showed a significant

but negative relationship with customer satisfaction.

This study revealed the following characteristics in which the Thai

employees were found to be strong: creating a positive moment of truth toward

customers, being polite and helpful, and being attentive. These strong

characteristics have also been revealed in other studies (Komin 2010)

Malik (2012) measured the gap between the service expectation and service

perception of customers in relation to the service delivered by four service

industries (banking, transport, courier and telecommunications) and checked the

impact on their satisfaction. His findings confirmed that service quality has a

positive influence on customer satisfaction.

 This studySlooked
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into the extent of adoption of Total Quality Management

(TQM) in the Philippines. Using the Quality Management Input-Output system as

the framework of analysis, the study also examined the relationship of TQM

adoption on quality, business, and organizational performance of Philippine

manufacturing companies. Sixty-four (64) manufacturing companies comprised

the sample. Results show that TQM adoption works in a third world environment

like the Philippines. TQM adoption was found to be highly associated with

performance. Significant improvements in organizational performance were

observed indicating the critical role of TQM in influencing human behavior. This

study contributes to the body of knowledge on TQM, especially on how it can be a

source of competitive advantage.

According to Teresa Whitacre, of international consulting firm ASQ, proper

quality management also boosts a company’s profitability.“Total quality

management allows the company to look at their management system as a whole

entity — not just an output of the quality department,” she says. “Total quality

means the organization looks at all inputs, human resources, engineering,

production, service, distribution, sales, finance, all functions, and their impact on

the quality of all products or services of the organization. TQM can improve a

company’s processes and bottom line

Customers are always aiming to get maximum satisfaction from the

products or services that they buy. Winning in today’s marketplace entails the

need to build customer relationship and not just building the products; building
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customer relationship means delivering superior value over competitors to the

target customers (Kotler et al., 2009). Whether an organization provides quality

services or not will depend on the customers’ feedback on the satisfaction they get

from consuming the products, since higher levels of quality lead to higher levels of

customer satisfaction

Previous research has established links between employee attitudes and

customer satisfaction. Little theory has been used to help explain and build on the

results of these studies. A theoretical model of the employee attitude‐customer

satisfaction process is proposed based on Bagozzi's (2012) model of attitudes,

intentions and behavior. Employee attitudes and intentions, and customer

satisfaction data from a service‐oriented organization with 160 offices is used to

provide an initial test of the usefulness of the model. Cross‐validations of the

model with and without common method variance were conducted

Loulm (2010) Creating and updating meal tags, printing them on

small-sized papers raise the costs, cause workload and affect the service quality

negatively at the hotels with all-you-can-eat buffet system. Over the last few years,

we have seen that many hotels started to make use of tablets to improve the

service quality, decrease the costs, provide customers ability to order foods, make

reservations, manage their rooms, etc. Going paperless and including more

features by adopting new technologies increase the quality of service, help

customer's and staff's decision-making processes more effective, improve customer

and service personnel experience. In this chapter, authors designed and developed
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a flexible, cost effective, easy-to-use, and customer-friendly and staff oriented

paperless buffet management system for the restaurants that have all-you-can-eat

buffet. Through this system, they aimed to achieve enhanced customer service,

increased efficiency and customer satisfaction; save time, paper and printing costs;

provide environmental benefits and efficient buffet management.

In a comparison of Thai and Western hotels, Chartrungruang et al.

(2012) elaborated that Thai hotels consider guest satisfaction to precede any

commitment to service quality, emphasizing that Thais personally place a greater

value on the creation of positive relationships rather than on performing ef-

fectively. These characteristics help to promote a positive environment, and are

also crucial factors driving service quality and promoting positive first impressions

to customers.

Managers within the hospitality industry make frequent reference to TQM

principles. The extent to which these principles are applied effectively within the

human resource management area of hospitality however remains under-

researched. By applying TQM principles, this paper focusses on the relationship

between customer service and training drawing upon comparative data from

Western and Thai hotels. The paper also examines the perceptions of staff towards

of hotels' guest-orientation and the provision of quality guest services. The

researchers found that guest assessments of the performance of hotel frontline staff

depend on their services function (e.g., front-office, housekeeping). The service

quality skills needed by frontline staff were also found to differ in the case of
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Western and Thai hotels. Such differences merit proper consideration on the part

of managers within the major hotel chains. The various findings may assist

hospitality managers to determine appropriate strategies for the enhancement of

guest services particularly in cross-cultural settings. (Bung-on 2009)

Top management commitment and employees empowerment is one

of the most important and vital principle in total quality management, because it is

often assumes to have a strong relationship with customer satisfaction. In TQM

implementation top management commitment in creating an organizational

climate that empowers employees is very imperative. Thus, this can be achieved

with top management commitment in training employees and giving employees

opportunities to be responsible for the quality of their work. TQM strategy brings

about a turnaround in corporate culture as compared to the old traditional system

of management in which the top management simply give orders and the

employees merely obey them. In this study we’ll show that TQM objective of

quality

improvement and customer satisfaction can be better achieve if the top

management are committed to empower employees to be responsible for the

quality of their work and also empowerment in relation to decision making

authority and process

Komatsu is the world’s second largest manufacturer of construction

equipment and mining equipment after Caterpillar. This case study focuses on a

plant in Italy just after a global recession. In this recessionary climate, the
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management faced serious struggles, especially low employee engagement. HR

Director, Francesco Blasi, explains: “We were in a period of crisis. But we still

needed to be able to team up and go forward, so we recognized that this time of

difficulty could also be a time of opportunity. We needed to take this opportunity

to change perspectives in our company culture to develop the skills of the

employees who would help the company grow after the recession. We needed to

build employee engagement.”

In April 2012, Komatsu partnered with Six Seconds to increase the

engagement of its employees. The project with Six Seconds blended the use of

assessments, trainings, and project-based learning to involve manager in creating a

new vision of engagement. This case study focuses on 24 second-line managers.

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CHAPTER 3

RESEARCH METHODOLOGY

This chapter will show how the research methods and procedures that will

help to answer the questions of a problem in a way of observations. Specially the

method of research, the number of population, the data gathering procedure and

the statistical treatment.

Research Design

The research methodology is defined as a research study in a use of research

design, report and data analysis, sampling procedures when conducting a research

and data analysis, the research conducted to see how the quality service affects the

customers’ satisfactions of beanyard café.

Research Locale
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The research conduct a survey in beanyard café at JP Rizal St.Poblacion

Cabuyao bayan laguna, there is one branch of beanyard café in JP Rizal

St.Poblacion.

Population Sample

The researcher utilize the number of population satisfy in the service quality

of beanyard Café. In total of 60 customer here we had choosen to complete the

questionnaire it may compose of valid position like service quality through

customer satisfaction in Beanyard Café.

Research Instrument Technique

In order to identify an accurate data the researcher use a technique call likert

scale, were researcher made a questionnaire to know the customer responds based

on their level of agreement. The survey is in the internet and taken the study of

other author who has the same topic of our study. The researcher choose some

techniques in selecting the sample size. The researcher consider what is the most

convenient sampling techniques to use. The researcher use the free time of all the

respondents who answered the questionnaire.

Data Gathering Procedure

The items in the questionnaire is get from a websites the researcher gained an

idea to create a questionnaire through internet for the reason. And the researcher

utilized direct data set of questionnaire from the respondents for it to gather.
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Validation of Questions

After the researcher finished the questionnaire researcher give it to check the

website where the researcher gathered the questions. The questionnaire will be

check if there is a wrong or problem before they will give to the respondents. Before

the researcher conduct a survey they make sure that is has a permission and the

administration is done by the researcher personally so the questionnaire will be

given immediately.

Statistical Treatment of Data

The Data collected will be tabulated and analyze using the following

statistical test.

1. Frequency and percentage distribution – This will be used by the

researchers in analyzing the data in question SOP #1.

Where:

f = Frequency response

n = Total number of the respondents

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2. Weighted mean – This will be used by the researcher in the determination

of the average response of variety store owners.

Where:

WM =Weighted Mean

= summation symbol

f = frequency response

x = numerical rating

n = total number of the respondents

3. Standard Deviation – This will have determine in further analyzing

answer in SOP # 2 and 3.

Where:
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= summation symbol

x = numerical rating

n = total number of respondents

4. Z – Test – It is used to determine whether two population means are

different when the variances are known and the sample size is large.

Where:

x = sample mean

uo = hypothesized population mean

s = standard deviation

n = total number of respondents

Arbitary Scale

Weighted Mean Qualitative Description Interpretation

3.25-4.00 Strongly Agree Very Good
2.50-3.24 Agree Good
1.75-2.49 Disagree Fair
1.00-1.74 Strongly Disagree Poor