CHAPTER 1

INTRODUCTION

Rationale of the Study

Small and Medium Enterprises (SMEs) are important in economic growth

and significantly generate high employment rate. The economy’s success depends on the

great numbers of SMEs (Grimsholm and Poblete in 2010). Small and Medium

Enterprises (SMEs) are described as the efficient and prolific job creators, the seeds of

big businesses and the fuel of national economic engines (Ackah & Vuvor, June 2011).

SMEs respond to the country’s fast-changing market realities especially on the rapidly

increasing customers’ demand for high-quality products and services. To be on top of the

competition, leaders from different organizations identify factors and pressure employees

to adopt changes thus employees commitment towards the organization have become

more important.

In the field of scholarly research, attention is given more in studies related to

education, public health, human resource, quality management, and other topics that are

beneficial for the growth and development of organizations workforce or to the

community. Only recently that studies in SMEs have slowly gained popularity among

researchers.

The SME sector is faced with further growth hindering reality; the lack of skilled

labor, poor management, and the lack of marketing strategies. It is seen that SMEs

1
leaders and their leadership styles are relevant and applicable to the organization

regardless of their size and that there is no best style to follow. Owners and managers

tend to adopt different kinds of styles due to different factors such as personal traits,

experience, and training.

SMEs are diverse in business management styles and to some extent share certain

characteristics based on the type of ownership, corporate age, target market; whether

towards the locals or foreigners, and the major source of finances. Small and medium-

sized business owners may find it a challenge to keep their employees motivated given

that business enterprise have only limited amount of financial resources that is only

enough to run the business operation compared to big corporations. SMEs survival

depend on their employees’ commitment, since every individual has their own work

attitude and behavior that could give a positive impact on the business’ success and

viability.

The Philippines’ Micro, Small and Medium Enterprises (MSEs) are critical to

growth, employment and poverty reduction. MSMEs represent 99% of enterprises in the

country, contribute around 36% of GDP and 60% of the total employment. They are the

backbone, the heart and the lungs of the economy (Fruman, 2016). As per the Department

of Trade and Industries (DTI), in the PSA list of establishments for 2017 shows the

important role of MSMEs in the increase of employment rate which generates 4, 922, 251

jobs compared to the generated jobs made by the large enterprise, 2, 909, 8383. These

mirco, small and medium enterprise contributes to the 62.9% of the total job generated in

2
which 30.3% for micro enterprise, 25.9% for small enterprise lastly, 6.7% belongs to the

medium enterprise. From the PSA list for 2017, there were 924,721 business enterprise

and 99.56% belongs to the MSMEs (89.59% micro, 9.56 small and 0.41% medium

enterprise). SMEs provide as much as two-thirds of all employment, with small firms

contributing more to employment in low-income countries than high income countries

(Fruman, 2016). Thus, as the government supports the growth and productivity of SMEs,

it can help reduce poverty in the country by increasing the quantity and quality of jobs

and income levels of their workers.

In the South West part of the Philippines, a first class municipality has gained

attention to big investors from the different regions of the Philippines and even overseas.

Ipil is the capital municipality of the Zamboanga Sibugay Province. The province was

created in 2001 as it was carved out from the district of Zamboanga del Sur. Being part of

the Zamboanga-Sulu peninsula, it is rich in natural resources and its culture. The

economy of the province, primarily, is based on rice and corn milling, baking, rattan and

wood furniture, while some are involved in food processing, wax and candle factories,

clothing and other local businesses that are helpful for the region’s economic growth.

Due to its constant increase in population, businesses such as SMEs have also increased

in number and has helped the economy of the province in more ways than one.

As Ipil’s economy progresses, there is also an increase in the degree of

competition between businesses in the same industry. This intense competition is

commonly felt among the wholesale and retail trade, repair of motor vehicles and

3
motorcycles sectors. Motorcycles have been the primary mode of transportation. Various

motorcycle brands have entered the local market and thus stiff competition is seen in the

marketing and distribution. In the wholesale and retail sector, the number of grocery

stores, department stores, mini-marts, gadget and electrical shops, hardware and

construction supplies, and distributors of major beverage products have also multiplied.

All businesses that are involved in these activities belong to SMEs that are faced with the

lack of proper management guidance, poor human resource, in demand of skilled labor,

and in need of marketing and technology innovation.

Employee retention is a global concern for organizations and having the right

human capital in place is essential for organizations to stay competitive (Oladapo, 2014).

To stay on top of the competition retaining skilled employees is necessary and

challenging. Low employee retention rate is a growing concern for organizations.

Strategies should be a critical part of the organization’s success. Employee retention

should be given importance by the organizations.

Employees transfer from one company to another for various reasons. It could be

that they are not happy, uncommitted, and do not have the positive attitude towards work.

It could also be that employees see better opportunities in other organizations. They think

that the other organization can help them grow. Perhaps the salary offered by the other

organization is higher. There are also those who leave the organization because of their

negative perception towards the managers and leaders.

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 Leaders who constantly complain on the increase turn-over rate of their

employees need to assess their leadership styles in order to increase employee retention.

Hence, this study aims to understand the perception and level of every employees

commitment. This could help leaders to better understand their employees.

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 THE PROBLEM

Statement of the Problem

This study examined the relationship between leadership styles of managers,

owners and organizational commitment of employees among selected SMEs in Ipil,

Zamboanga Sibugay in order to develop strategies to improve organizational

commitment.

Research Questions

Specifically, this study will answer the following questions:

1. What is the profile of the enterprises in terms of:

1.1 Type of business ownership

1.2 Industry Classification

1.3 Asset size

1.4 Number of employees, and

1.5 Number of years in operation?

2. Among the SMEs surveyed;

2.1 What are the employee perception of SMEs about the leadership style

of employers?

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 2.2 What are the levels of organizational commitment in terms of

Affective Commitment, Continuance Commitment and Normative

Commitment?

3. What is the relationship between;

3.1 Transactional Leadership style and Organizational Commitment?

3.2 Transformational Leadership style and Organizational Commitment?

3.3 Laissez-faire Leadership style and Organizational Commitment?

4. Based on the findings of the study, what strategies can be proposed to improve

organizational commitment?

Statement of Assumptions

Emotional contagion is a concept wherein there is a transfer of mood or emotions

among the people in one group, it may influence the mood in the working area, individual

mood, attitudes, behavior, and group dynamic. The owners’ behavior has a great impact

on how its employee (supervisor or manager) behaves and deal with its subordinates.

Considering that the managers’ behavior reflects that of the owners’ behavior.

Significance of the Study

It is important to draw organizational leaders’ attention to the different factors that

may affect its employees’ organizational commitment. This would help the current,

future leaders, and future investors of SMEs in Zamboanga Sibugay Province to

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determine the types of leadership styles to adopt and maintain trust and organizational

commitment from their employees. Second, it adds knowledge to other concept of

leadership and employee commitment. This research paper can contribute to the concept

of leadership styles and employees’ organizational commitment in both urban and local

areas, especially in Ipil, Zamboanga Sibugay since there are still no studies conducted in

the community. Lastly, this study would be a great help to decision makers and leaders of

different SMEs to enhance their employees’ organizational commitment which will be

reflected through a decreased turn-over rate and high-quality service offered by its

employees.

Limitations of the Study

There are some limitations in collecting the SMEs total assets. To have a better

picture of the organization, the capital investments of the establishments was use as the

basis which is included in the Master List of Business Establishments of Ipil, Zamboanga

Sibugay. Majority of the business owners asked not to include their business name and

the researcher decided to use letters instead of the business name. Yet, for better

information in the Business Survey Questionnaire, leaders were asked for the company’s

total asset estimate.

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9
 DEFINITION OF TERMS

Small and Medium Enterprises (SMEs), based on the definition of MSMEs in the

Philippines is emphasized on the amended RA 9501, is any business activity or enterprise

engaged in industry, agribusiness and/or services, whether single proprietorship,

cooperative, partnership or corporation whose total assets, inclusive of those arising from

loans but exclusive of the land on which the particular business entity’s office, plant, and

equipment are situated, must have value falling under the following categories:

Micro Enterprise: not more than Php 3,000,000

Small Enterprise: Php 3,000,001 – Php 15,000,000

Medium Enterprise: Php 15,000,001 – Php 100,000,000

Leadership style is a leader’s style on implementing rules, giving direction, motivating

and managing his/her employees.

Transformational Leadership is a leadership style of having an “ideal” behavior as a

leader. A leader that influences his followers.

Transactional Leadership is leadership style that emphasizes on the quality of exchange

between the leader and follower. It motivates followers in short-term based on a reward

and punishment system.

Laissez- Faire leadership is a leadership style in which leader avoids responsibility thus

allowing followers to make decisions.

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An employee is an individual who works full-time (eight hours a day) under an

employment contract, he/she receives wages or salary, and in a position below executives

level (Rank and File).

Employee commitment describes the employee’s commitment to their organization that

has feel a special connection, that they fit in, and embrace the organization as they

become one.

Organizational commitment involves three levels of commitment; affective, continuance

and normative. It arises when an employee is emotionally attached and feels that their

presence is important for achieving the organization’s objectives. It is where employees

feel they are valued, respected and felt that the management treats them as a family.

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 CHAPTER 2

THEORETICAL BACKGROUND

In today’s generation, anyone can be a manager but not all are capable of being a

good leader. Several studies have been made in the context of Leadership, identifying

which type of leadership style is effective, how leadership style affects employee

performance and organizational culture. An empirical study of the relationship between

leadership styles and employee commitment in a private Un-aided B-schools in

Maharashtra showed that, both of Transformational and Transactional leadership styles

had a positive impact on the level of organizational commitment of employees and that

demographic variables such as age, education, monthly income, and marital status had a

significant impact on employee commitment (Poddar, 2012). While the results from a

manufacturing industry in Malaysia showed that transformational leaders are more able

to bring commitment in employees than transactional leaders (Lo et al., 2009).

In a fast-growing economy aside from large enterprises, researchers gained

interest in conducting leadership studies to SMEs on how their organizations’ success

involves the loyalty of its employees and that employee's organizational commitment is

sometimes influenced by its attitude, motivation and job performance.

The Concept of Leadership

A Leader is someone who can influence others and has a managerial authority.

Leadership is what leaders do (Robins and Coulter, 2012). Leadership can be of different

terms and differs in effectiveness and consequence to its internal and external

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stakeholder. From the beginning of the19 th Century, the concept has been used by various

scholars in so many ways. There are many definitions available for leadership as many

authors and researchers attempted to define the concept. The proliferation of different

concept about leadership is primarily due to its complexity and that there is no clear

agreement of what it is as it varies depending on circumstance.

Leadership is a process whereby an individual influence a group of individuals to

achieve common goal (Northouse, 2004). Leadership is inspiring others to pursue your

vision within the parameters you set, to the extent that it becomes a shared effort, a

shared vision, and a shared success (Zeitchik, 2012) and is the wise use of power. Power

is the ability to influence others. Sometimes leaders use power and leadership together in

varying ways depending on the situation given. Empowerment has become the new

concept of power and become a strategy for improving work outcome. In a study

conducted with the nurses in Singapore by Avolio et al. (2004), the result shows that the

feeling of empowerment mediated the effects of transformational leadership of

organizational commitment.

The ability of a leader can be developed thru observation and thru one’s beliefs,

character, and ethics. Skills are developed thru time, while some attributes of being a

leader make one person unique. A leader must be able to communicate confidently to the

people around him, you lead through two-way communication much of it is nonverbal

(Clark, 2015). According to de Vries et al.(2009), charismatic and human-oriented

leadership are mainly communicative, while task-oriented leadership is significantly less

13
communicative. That communication styles are strongly and differentially related to

knowledge sharing behaviors, perceived leader performance, satisfaction with the leader,

and subordinate’s team commitment. Communication has been a critical factor in a

leader- follower motivation and performance and with proper communication it can be a

great potential to have more committed in organization..

Leadership Theories

Frederick Taylor, the man who proposed the practice of scientific management,

suggested that work leader-managers' interaction with the employees showed higher

chances of attaining their goals. In the 19th century, Great Man and Trait Theory believe

that leaders are born with the right characteristics for leadership and they are not made.

Since then, a lot of leadership theories have been studied.

Theories Discussions
The theory evolved during the mid -19th century (1840).
This was popularized by Thomas Carlyl. Yet, a counter-
Great Man Theory
argument has been formulated by Herbert Spencer in
1860, that heroes are simply the product of their times and
their actions results from social conditions.

Based on its belief that the traits of a leader are innate and
are destined to lead. This theory emphasizes that 'man' is
the only one who is capable of leading.
Trait Theory Studied by Gordon Allport, an early pioneer in the study
of traits.
According to his study, “cardinal” traits are those that

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 dominate and shape a person’s behavior in contrast to,
“central” trait are those characteristics found in every
person and lastly, “secondary” trait is those seen in a
certain circumstance. A leader is made or broken based on
emotional stability, the ability to admit faults and errors,
intellectual strength and having refines interpersonal skills
(McCall and Lombardo, 1983).

That leaders have a certain attribute which enables them

to lead which involves a long list of all positive traits that
a leader could have, whether that leader is born or made.
Lists are then made by Ralph Stogdill in 1974.

In 2002, Zaccaro identified social intelligence are

capabilities such as social awareness, social acumen, self-
monitoring, and the ability to select and enact the best
response in a given situation and social environment. In
addition to his study, Zaccaro, Kemp, and Bader (2004)
included those social abilities in the categories of
leadership traits.
Behavioral Theory It focuses on the behavior of a leader rather than on their
qualities. Since the behavior of a leader predicts one's
capability of influencing and the effectiveness of
delivering its responsibility.

The theory assumes that certain leadership styles are

effective while others are not and its belief that the ability
to be a leader can be taught and developed that behaviors
are conditioned to have a specific response to specific
stimuli.

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From the late 1940s up to the present, the focus of
leadership shifted to leader behavior. Two research
groups coined the behavior approach – the Ohio and
Michigan.
The Ohio State studies showed that there were two groups
of leader behaviors: initiating structure and construction.
 Initiating structure – these are task behaviors and
includes organizing tasks, defining relationship
and roles, establishing well defines patterns of
organization, the channel of communication, and
method of getting jobs done (IML, 2017).
 Consideration – these are relationship behaviors
and includes building friendship, mutual trust,
respect and camaraderie (IML, 2017).

The Michigan State study is led by a famous

organizational psychologist, Dr. Rensis Likert. Their
study explores leadership behavior by giving attention to
the leaders’ behavior on the performance of a small
group. Two types of behavior were identified:
 Employee orientation – focuses on the personal
relations aspect: employees are viewed as human
beings with personal needs (“The Behavioural
Theory of Leadership”, 2017).
 Production orientation – focuses on the technical
aspects of the job: employees are viewed as the
means of getting the work done (“The Behavioural
Theory of Leadership”, 2017).

Following the Ohio and Michigan studies, in 1964 Robert

Blake and Jane Mouton developed the Leadership grid

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 theory which focuses on the production and employee
orientations identified from the study of the former. The
model is composed of five different leadership styles and
these styles were in relation between a managers concern
for people, for production and his motivation. It is used to
measure performance and allows the self-analysis of
leadership style.
Contingency Theory This believes that there is no best way of leading, it
focuses on identifying different situational variables
which can be applied with the best appropriate and
effective style of leadership that fits in a certain situation.

Fiedler’s Contingency Leadership Theory

In 1951, Fiedler develops the first contingency theory. It
was the first theory to focus on how situational variables
interact with leader personality and behavior. Fiedler
called his theory “Contingency Theory of Leader
Effectiveness,” (House & Aditya,1997). He believed that
leadership style is a reflection of one’s personality and its
behavior. Fiedler believed that leadership style is a
reflection of ones’ personality and behavior. Leadership
styles are constant since leaders do not change styles, they
change the situation. The contingency leadership model is
used to determine whether a person’s leadership style is
task or relationship oriented and if the situation matches
the leader’s style to maximize performance (House &
Aditya, 1997).

Cognitive Resources Theory

A theory developed by Fred E. Fiedler and Joe Garcia in
1987. It focuses on the influence of the leader’s

17
 intelligence and experience on his or her reaction to
stress. That people who are task-oriented tend to see one’s
worth in terms of what should be done. While some focus
on the importance of the human relationship. These
factors have been considered by Fiedler as he believes
that there is no ideal leader because the situation may be
different.
Transactional Theory This theory emphasizes the leader-follower relationship,
focusing on a mutually positive benefit that involve
rewards or recognition to gain loyalty or commitment of
its followers.

For the theory to become effective and motivational, the

leader must align adequate reward or punish his follower
for performing its assigned task.
Transformational This involves motivating its followers through their
natural and charismatic personalities. Thus, creating a
Theory
strong leader-follower relationship that will in return give
a positive transformation to the organization's
performance.

In this theory, leaders aim to transform followers their

charismatic personalities.
Table 2.1 Leadership Theories

The Full Range Leadership Model

The “full range leadership theory” comprise the three typologies of leadership

behavior (transformational, transactional, non-transactional laissez-faire). The model is

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used to describe a full range of influencing styles from a non-leadership to the powerful

transformational leadership behavior. It captures different kinds of behaviors to give

differences to the leaders' associates. Its behavioral range from transformational

leadership behavior to transactional leadership behavior down to the Laissez-faire

leadership behavior. Transactional leadership and Transformational leadership clearly

differ in their approach, thinking and even in influencing others, yet the combination of

the two leadership orientations that optimize the full range of performance and

development (Avolio, 2010). Full Range Leadership (FRL) theory of Bass is known to

be used by organizations to enhance the leadership style on employee commitment. Bass

(1985) emphasized that in leadership theories, employee motivation was considered not

the key; but only the vehicle. Some suggest that employee’s motivation influences of

their performance and by receiving rewards thru avoiding punishments, in which

employee’s work performance is tied to their expected outcome.

Laissez – Faire leadership (LF)

Leaders avoid intervening or accepting responsibility for follower actions.

Transactional Leadership Elements

Management by exception, passive (MBE-P): Only intervenes when standards are

not met. 19
Management by exception, active (MBE-A): Monitors follower performance and
take corrective action when deviations occur.
 Transformational Leadership Elements

Individualized Consideration (IC): Diagnoses and elevates the need of each

follower.
Idealized Influence (II): Becomes a source of administration by followers, often
functioning as role models; enhances followers pride, loyalty and confidence.
Intellectual Stimulation (IS): Stimulates followers to view the world from a new
perspective; questions old assumptions, beliefs, and paradigms.
Inspirational Motivation (IM): Articulates in simple ways an appealing vision and
provides meaning and sense of purpose in what needs to be done.

Figure 2.1 Bernard Bass’s Revised Full Range Model of Leadership

Transformational Leadership

Transformational leadership refers to the leader moving the follower beyond

immediate self-interests through idealized influence (charisma), inspiration, intellectual

stimulation or individualized consideration. It elevates the follower’s level of maturity

and ideals as well as concerns for achievement, self-actualization, and the well-being of

others, the organization, and society (Bass, 1999). It described leaders who had the

greatest influence on them as transformational: inspirational, intellectually stimulating,

challenging, visionary, developed oriented, and determined to maximize performance. In

many cases, the term “charisma” was used (Avolio and Bass, 1995, 2004).

Transformational leadership was defined as a motivation of followers by appealing to

higher ideals and moral values (Burns, 1978). It is a type of leadership where a leader

20
works together as a team with its subordinates to identify the needed change and creating

a vision for the organization.

Transformational leaders stimulate and inspire followers to achieve

extraordinary outcomes (Robbins & Coulter, 2012). In 1985, Bass introduces

transformational leadership, which fits this shift whereby leaders are visionary, confident,

and determined individuals who motivate their followers to do more than they were

originally expected to do. It enhances motivation, morale and job performance of its

subordinates, transformational leaders act as a role model for their followers to inspire,

raise interest, by overcoming their weaknesses, identifying their strengths and challenge

themselves to have better performance.

Transformational leadership develops from transactional leadership. It is also an

interactive type of leadership. Leaders and followers reach a high degree of

interconnectedness from which they are able to achieve desired changes (Burns, 1978).

Transformational leadership produces levels of employee effort and performance that go

beyond what would occur with a transactional approach alone. Moreover,

transformational leadership is more than charisma, because the transformational leader

attempts to instill in followers the ability to question not only established views but those

views held by the leader (Robbins & Coulter, 2012). Leaders go beyond what is expected

for the good of the team and of the organization. They serve as mentors, coaches,

teachers to its members because they feel the need and hunger for knowledge of its

people. The presence of purpose and the feeling of a family can be felt by everyone

21
where Leaders and followers share a common interest, shared fates and interdependence.

A Leaders' way of gaining their employees’ trust and loyalty, is by recognizing them,

their potentials, inspiring and motivating them, promoting work collaboration and

reinforcing positive behaviors.

Transformational leadership is proven to increase effectiveness and satisfaction

among the followers as compared to transactional leadership, but an effective leader

should practice both leadership approaches. Gill et al. (2006) claimed that organizations

can reduce job stress and burn out by applying transformational leadership.

Transformational leaders continuously develop oneself and others as they instill their

employees the importance of achievement and encourage them to reach self-

actualization.

The goal is to 'transform' people and organizations in a literal sense – to change

them in mind and heart; enlarge vision, insight, and understanding; clarify purposes;

make behavior congruent with beliefs, principles, or values; and bring about changes that

are permanent, self-perpetuating, and momentum building (Covey, 1990).

Transformational leadership is ineffective without transactional leadership, as it is built

upon it, but not vice versa (Bass, Avolio & Goodheim, 1987).

Transactional Leadership

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 During the early years, leaders are viewed to be transactional leaders; that is

leaders that lead primarily by using social exchanges (or transactions). A leader is

someone who operates within existing cultures or systems (Bass, 1985). Transactional

leaders guide or motivate followers to work toward established goals by exchange

rewards for their productivity (Robbins & Coulter, 2012). The exchange could be

economic or political or psychological in nature; a swap of good or of one good for

money; a trading of votes between candidates or between legislators; hospitality to

another person in exchange of willingness to listen to one's trouble (Hickman, 1998).

Transactional leaders focus more on organization, performance, and supervision. It

focuses on working with individuals or groups, setting and defining standards of

agreement to achieve specific work objectives, discovering individuals’ capabilities and

specifies the compensation and rewards that is expected upon the successful completion

of the assigned tasks. An effective transactional leader is proactive, it anticipates and

intervenes any problems in the organization and takes action immediately in a more

effective way.

Transactional leadership is characterized by behaviors and attitudes that

emphasize the quality of exchange between superiors and followers. Both, discuss what is

required as to what resources and conditions are needed in order to reach the aims.

Resulting a fair negotiation concerning demands and rewards is based on a mutual

agreement. Transactional leaders offer inducements to move in the direction desired by

the leaders, which often is a direction that would also satisfy the self-interests of the

followers (Avolio, 1999). Transactional leadership focuses on setting a standard,

23
identifying and managing mistakes. This leadership has been widely used by different

enterprise but it cannot guarantee that motivated followers will stay long time and

organizations success. Both of the leadership styles are not independent or opposing,

leaders can act in a transformational and in a transactional way of leadership it only

differs on what process a leader to motivates his followers and on the objectives set by

the leaders.

Laissez-faire Leadership

Laissez-faire Leadership is the type of leadership in which leaders allow group

members to make decisions thus, giving a negative impact on the organization. A laissez-

faire leader is extremely passive who is hesitant to influence of followers, giving their

outmost freedom up to the point the leader handed his responsibility to his subordinates.

A laissez-faire leader as an extreme passive leader who is reluctant to influence In a

sense, it indicates the absence of leadership. This behavior was in contrast to that of

autocratic leaders, who displayed a much greater frequency of order giving, disrupting

command, praise and approval and nonconstructive criticism (Bass, 1981).

Laissez-faire Leadership is not ideal in a situation where members lack the

experience or knowledge they need to complete the given task and make decisions. This

type of leadership style has been linked to negative outcomes such as frustration or poor

job performance, disorganization, low leader effectiveness, and less group satisfaction.

Some researchers exclude laissez-faire leadership since it is the least satisfying and the

24
least effective style of leadership since it shows the absence of the qualities present in a

leader.

According to Bass (1981), Laissez-faire leadership should not be confused with

democratic, relations-oriented, participative, or considerate leadership behavior. Nor

should it be confused with delegation or management by exception. Delegation implies

the leader's active direction of subordination to take responsibility for some role or task.

The active delegative leader remains concerned and will follow up to see if the role has

been enacted or the task has been successfully completed.

The Concept of Organizational Commitment

Organizational commitment is a psychological attachment of an individual toward

an organization. It is an emotional response that can be measured through people’s

behaviors, beliefs, and attitudes. Organizational commitment is to when an individual

fully embraces or accepts the goals, mission, and values of an organization.

Organizational commitment involves employees assisting the organization to achieve its

goals, increasing their involvement and increasing their loyalty.

Employee commitment has gained popularity as part of every organization's

success, studies have been made by different sectors; private, public and non-profit.

Current research differs from the early research since the latter focuses on defining the

concept of employee commitment while the former examines organizational commitment

with the use of two different approaches; commitment-related attitudes and commitment-

related behaviors. The reason for studying organizational commitment are related to

25
“employee behaviors and performance effectiveness; attitudinal, affective, and cognitive

constructs such as job satisfaction; characteristics of the employee's job and the role such

as responsibility; personal characteristics of the employee such as age, job tenure

(Batemen and Strasser, 1984).

Employee commitment is defined depending on the approach to the commitment

that a person is referring to. Teshome (2011), cited Hunt & Morgan (1994), that

Organizational commitment has been operationally defined as “multidimensional in

nature, involving an employee's loyalty to the organization, willingness to exert effort on

behalf of the organization, the degree of goal and value congruency with the

organization, and desire to maintain membership. Employee commitment as a

psychological state that characterizes the employee's relationship with the organization

and has implications for the decision to continue employment with the organization. It is

the psychological bond of the employees with the organization because of shared beliefs

and values (Allen & Meyer, 1990).

Dimensions of Organizational Commitment

Allen and Meyer (1996), presented organizational commitment as

multidimensional and containing affective, continuance and normative components.

These dimensions describe the different development of every organizational

commitment and the implications for employees' behavior. That commitment is also

referring to employee's emotional attachment to, identification with, and the involvement

in the organization, and employee's feeling of obligation to remain with the organization

26
taking into consideration the costs that the employee associates with leaving it (Allen &

Meyer, 1997). This model has been used to predict important employee outcomes,

turnover, behaviors, job performance, absenteeism, and tardiness. A committed employee

is the one chose to stay with an organization, being on time at work physically and

mentally, protects the organizations assets, believes, and respects the organization goals.

A committed employee contributes and devotes oneself to the organization.

Affective Commitment Dimension

Affective commitment refers to an employee's emotional attachment to,

involvement in, and identification with the organization and its goals. Affective

commitment involves three aspects such as the formation of an emotional attachment to

an organization, identification with, and the desire to maintain organizational

membership. In this context, affective commitment reflects the identification and

commitment situation where the employees stay in the organization with their own will

(Allen & Meyer, 1990). Members who are committed on an affective level stay with the

organization because they view their personal employment relationship as congruent to

the goals and values of the organization (Beck & Wilson, 2000).

Affective commitment is related to positive attitude or feeling toward the

organization. The organizational commitment model indicates that affective commitment

is influenced by factors such as job challenge, role clarity, and goal difficulty,

receptiveness by management, peer cohesion, equity, personal importance, feedback,

participation, and dependability (Allen & Meyer, 1997). These employees usually

27
demonstrate high-performance level, positive work attitudes and a desire to stay with the

organization. Since affective commitment can be considered attitudinal based in a

situation where the employee sees oneself as a part of the organization. Therefore, it is

important that the organization's employee must have the feeling of affective

commitment since a strong affective commitment, means employees are willing to stay in

the organization and accepts its ideas and values.

Continuance Commitment Dimension

Continuance commitment as awareness of the costs associated with leaving the

organization (Allen & Meyer, 1997). It refers to an awareness of the costs associated with

leaving the organization as well as the willingness to remain in an organization because

of the investment that the employee has with the “non-transferrable” investment. The

nontransferable investment includes this such as retirement, relationships with other

employees, or things that are special to the organization (Allen & Meyer, 1990).

Furthermore, Allen & Meyer (1997) explained that employees who have nontransferable

investment within an organization often do not leave their organization easily, because

they share continuance commitment with their employer.

Continuance commitment occurs when individuals base their relationship with the

organization on what they are receiving in return for their efforts and what would be lost

if they were to leave. This commitment reflects the individuals behavior in putting their

best effort in work only when reward matches their expectations. In addition, these

individuals fear of losing investment they develop this type of commitment because of a

28
perceived lack of alternatives and this would be based on the perceptions of employment

in the market. Moreover, continuance commitment is considered to be a negative type of

commitment by the organization, where employees with high levels of continuance

commitment chose to stay with the organization because they need to. That continuance

commitment is educated while individual plays in a way that stakes something which is

unrelated to his/her current tasks but valuable and compatible to his/her present behavior

cause of awareness from costs of quitting an organization (Becker, 1960).

Normative Commitment Dimension

Normative commitment is a partly new phase of organizational commitment

which describes employees’ obligation to their workplace or commitment that they have

to the organization (Bolon, 1997). Employees with a high level of normative commitment

feel they ought to remain with the organization (Allen & Meyer, 1990). The obligation of

normative commitment arises either through the socialization process within or outside

the organization. It can either be affected by marriage, family religion and ETC.

Employees commitment is often related to their feeling of having a moral obligation to

the organization. It may exist at the same time or not. It must be remembered that these

dimensions of organizational commitment are not mutually exclusive rather, an employee

may develop one of these or a combination of both or all aspects of organizational

commitment. Regardless of their definition, “committed” employees are more likely to

remain with the organization (Allen & Meyer, 1990).

29
 The outcome of the different dimensions of organizational commitment differs on

their motives and reflects their current ang past relationship with the organization.

Possible outcomes for organizational commitment include employee retention,

attendance, organizational citizenship, and a good job performance. That workers’

organizational commitment is significantly correlated with their perceived job security. In

general, when an employee has a good relationship with their workgroup, one is likely to

have a high level of commitment to overall organizational commitment.

The Relationship between Leadership Style and Organizational Commitment

Numerous researchers have devoted a great attention to the relationship between

leadership styles and organizational commitment. Studies have emphasized that

organizations produce different programs to increase the organizational commitment of

employees. Employee involvement is related to organizational commitment, and work-

related values of paternalism and masculinity/femininity (Suthisai, 2001).

A relationship between commitment and leadership style has been documented in

the works of literature of organizational and management. Several studies found a

positive relationship between the two dimensions. Inspirational motivation was

discovered to have the strongest effect on organizational commitment (Shin, 2013). That

leaders are important in the context since they shape subordinates’ organizational

commitment in various ways. A study by Abuzaid (2018), shows that there is a positive

significant relationship between ethical leadership and two components of organizational

commitment, namely, affective and normative commitment and shows no relationship

30
with continuance commitment. Almandeel (2019), contradicts the previous study as the

outcome from teachers at the international school in Jeddah wherein, ethical leadership

shows positive influence of moral leadership to the teachers’ continuance commitment.

Similarly, Ponnu &Tennakoon (2009) results indicate that ethical leadership behavior has

a positive impact on employee organizational commitment and employee trust in leaders.

A study on perceived leadership and organizational commitment among

firefighters shows that there is a positive linear relationship exist between

transformational style and organizational commitment levels as well as transactional

leadership style and organizational commitment levels while a negative linear

relationship exists between laissez-faire leadership style and organizational commitment

(Alyn, 2010). Similarly, rating its supervisors shows, positive significant relationships

between the follower's age and the follower's affective commitment, between the

follower's tenure and the follower's continuance commitment, between the leader's

transformational leadership style and the follower's normative commitment, and between

the leader's transactional leadership style and the follower's continuance commitment. In

addition to the above, results of the study also indicated that there were statistically

negative significant relationships between the leader's transformational leadership style

and the follower's continuance commitment and between the leader's transactional

leadership style and the follower's normative commitment (Baladez, 2014).

The leadership style of managers is an important factor in organizational success.

That effective leader can influence employee job attitudes and behaviors towards

31
achieving organizational goals. A study by Zhuplatova (2015) investigated the

relationship between transformational and transactional leadership style and

organizational commitment of their employees in a small firm. A significant positive

relationship was found between transformational leadership style and affective

commitment, revealing that a transformational leadership style is a strong predictor of

affective commitment.

The study by Dixon (2013), investigated the relationship between leadership style

and the use of transformational leadership for project managers. Results found a positive

relationship of affective commitment and transformational leadership for project

managers and while normative and continuance commitment does not show a positive

relationship with transformational leadership. That transformational leaders who

encourages their followers to think critically and creatively can have an influence on their

followers’ commitment (Bass & Avolio,1994). Similarly, Lo et al. (2009) presented that

findings have indicated that transformational leaders are more able to bring in

commitment to employees than transactional leaders.

A study examined the relationship of leadership style and Organizational

commitment of Defence University with 153 respondents show, that leaders at different

levels demonstrated more of transactional and laissez-faire styles than the expected

transformational leadership (Teshome, 2015). That a leadership style depends on a

certain circumstance or situation during the time of change which is common in most of

the organization in today’s century. In a study by Wiza and Hlanganipai (2014), they

32
tested 160 respondents to determine the impact of leadership styles on employees’

organizational commitment of the Universities academic staff and selected institutions,

the study revealed that transformational leadership style has a significant and positive

relationship with affective and continuance commitment while transactional leadership

style has a significant and positive relationship with normative commitment only. A

study that examines how project managers’ leadership style correlates with the outcome

on its subordinates’ commitment and work performance revealed that transformational

leadership style has a positive association with work performance and organizational

commitment of subordinates more than the transactional style (Limsala & Ogunlana,

2008).

Laissez-faire leadership style, the correlation analysis result indicated that there

was a weak but no significant positive relationship between laissez-faire leadership

behavior and organizational commitments (Teshome, 2015). In a similar study revealed

that both transformational and transactional leadership shows a significant relationship

with all dimensions of organizational commitment. In a similar research, it revealed that

Leadership style was found to moderately to strong affect organizational commitment of

employees in the industry (Randeree & Chaudry, 2012).

Clearly, management styles somehow influence the commitment level of

employees. Some organization rewards and support their employees for the work they do

because this action allows more trust in the organization. Employees who feel that they

are valued by their organization and managers tend to have high levels of commitment,

33
greater involvement and some become more innovative. Many kinds of literature support

the relationship of different leadership styles and employee commitment, that every

leader in an organization has its own leadership style that may impact the organization’s

daily operations.

Relationship of Demographic Variables and Organizational Commitment

Management style has always been the greatest contributor for employees’ high

level of commitment. From an employees’ perspective, the commitment could have been

affected by their desire to have a higher pay for they will be able to meet the needs of

their family. Commitment has become dependent to some factors such as, age, education,

gender and years of tenure and they predicts different outcomes such as, employee

turnover rate, absenteeism, job performance, and job satisfaction. Increase organizational

commitment thus contributes to improved employees performance, reduced turnover rate,

and it greatly contributes to the overall success of the organization these type of

employees are those who are highly motivated and inspired to be at work every single

day.

A study by Bakan et al. (2011), shows that education levels with higher levels of

commitment are graduate from university, vocational school and secondary school. Their

study signifies that the higher educated the employee is the higher the commitment to

their organization. Thus, the increase in education levels. Employees’ commitment

become more and more stronger (Bakan et al., 2011). In a similar study by Jaron et al.

(2015) shows that employees with high school level showed a highest score in affective

commitment. These employees are characterized to have a strong will to accept the

34
values of the organization and exert efforts to stay with the organization. This behavior

explains that employees with highest educational attainment (College) may have many

opportunities thus, limiting their desire to commit in one organization. Labrague et al.

(2018), identifies that Filipino nurses with ages more than 40 years had significantly

higher organizational commitment compared to nurses with ages 20 to 29 years old.

These nurses ages beyond 40 were assumed to have higher position compared to staff

nurse, that the greater the compensation of a nurse the higher the organizational

commitment.

In the concept of gender difference between organizational commitment has

arisen in the context of management. A study made by Dr. Chaiyaset Promsri (2018)

investigates the relationship between gender and organizational commitment of

employees of a public bank . The study concluded that male employees has a stronger

feeling and desire to stay with their current bank because they felt high economic and

social costs involved with leaving. This was perceived by male employees because they

have higher continuance commitment whom are attracted to higher salaries and

occupational position in the studied public bank. In a similar study conducted among

teachers Farooq & Zia (2013), concluded that male teachers are relatively more

committed to their organizations as compared to female. Jaron et al., (2015), conducted a

research that shows no significant difference to any organizational commitment when

grouped according to gender. It is then supported with the study made by Ariffin & Ha

(2015) which investigates the organizational commitment among Malaysian hotel

employee, the study reveals that there is no significant difference between the three

35
dimensions of organizational commitment and gender however the findings also showed

that there is a significant differences between educational level and the three dimensions

of organizational commitment. That gender, does not affects a person’s tendency to

commit to an organization. This different level of commitment among men and women

may be attributed by cultural factors which dictates that females are expected to stay at

home and take care of her family rather than pursuing ones’ career.

Small and Medium Enterprises (SMEs) and Organizational Commitment

Organizational commitment also found to be higher in organizations with high

employee satisfaction than in organizations with low employee satisfaction of similar

size, supporting the intuitive logic of the ‘happy-productive worker hypothesis’, which

posits a link between happiness and performance (Fisher, 2010). SMEs involve either one

individual or a team responsible for the organizations’ whole activities. The advantages

are that issues of coordination should be less of a problem in SMEs because regular face-

to-face interactions provide many opportunities for communication between members of

the management team. The disadvantage in SMEs because firms lacks resources and

experts people in certain areas and in many activities that sometimes can lead to

mismanagement.). In a study made in Malaysia involving private organizations or SMEs

by Chelliah et al., 2015, the findings showed that job satisfaction, job involvement, and

perceived organizational support influencing organizational commitment of employees

by the affective, continuance and normative type commitment are significantly positive

and accepted. Normative and affective types of commitments have high influence in

getting the employee’s job involvement, job satisfaction and perceived organizational

support.

36
 Data were collected from 863 Mexican SMEs to examine individuals’

commitment in SMEs, the result shows individuals position and tenure in the firm, their

psychological safety, and meaningfulness, and the firm entrepreneurial orientation all are

positively related to organizational commitment and effort (De Clercq &

Belausteguigoitia 2007).

The study by Asmawi and Khalili (2012), investigates the gender difference on

organizational commitment in Iran’s SMEs and found that men and women have the

same level of affective commitment, continuance commitment, and an overall

organizational commitment but it also reveals that women have a greater level of

normative commitment than men within the SMEs. In a similar study, results suggest

that HR practices can be used as important tools to increase commitment and thus,

potentially, effort and performance within underperforming SMEs with low employee

satisfaction (Saridakis et al., 2013).

Challenges of Small and Medium Enterprise

SMEs faced different challenges from increased competition, ability to adopt

changes in market demand, and innovation. Many small businesses find that their

geographical isolation puts them at a competitive disadvantage. Despite these substantial

obstacles, many economies remain heavily dependent on SMEs, particularly for

employment generation. Despite their perceived weaknesses, SMEs have not been swept

away with the process of globalization and regional integration, but, rather, their role and

37
contribution have changed and evolved which have enabled many to remain

internationally competitive and collectively be an important source of employment

generation (Harvie and Charoenrat 2015). MSMEs challenges include a low rate of

business entry – the Philippines is among the bottom 15% of countries with the lowest

rate of newly registered firms; low productivity and stagnation in the SME sector’s

structure – the more productive medium-sized firms represented only 0.4% of all

MSMEs, the same proportion as 10 years ago. Moreover, labor productivity of the

Philippines’ SMEs is about only one-third that of Malaysia and one-twentieth of the SME

sector in high- income countries. Finally, most of the MSMEs in the Philippines operate

in low productivity services, predominantly in the wholesale and retail sector and most

MSMEs are informal and vulnerable to poverty (Fruman, 2016).

The government has given attention and resources to SME development to reduce

poverty and generate jobs. SMEs in developing countries struggled to innovate and

upgrade their technological capabilities. In an early study by Beise and Licht (1996), as

cited by Habaradas & Habaradas(2009), identified the following barriers to innovation:

(a) too long gestation period required for innovative activity, (b) legal registrations and

restrictive government policies, (c) long drawn-out process for obtaining government

approval for a new product, (c) shortage of financial capital, (d) lack of competent

employees, and (e) very high levels of risk. A study of Caputo et al. (2002) was also cited

by Habaradas & Habaradas (2009) which also identified several obstacles to SME

innovation: (a) high innovation costs, (b) high risk related to innovation activities, (c)

absence of financial resources, (d) absence of skilled workers, (e) organizational

38
constraints, (f) regulations and technical strands, (g) low customer interest in product

innovation, (h) absence of information on technology, and (i) absence of market

information.

SMEs were identified to have lack of advertisement or promotion of the products

as the main marketing problem. This is followed by a lack of sales agents, as the business

owner was found to be the only one selling. Other problems encountered were poor

marketing strategy; lack of sales forecasts and plans; inferior packaging; and relying on a

few customers or having a limited network of clients (de Vera, 2012). SMEs are less

likely to be able to obtain bank loans than large firms: instead, they rely on internal funds,

or cash from friends and family, to launch and initially run their enterprises. About half

of formal SMEs do not have access to formal credit (Fruman,2016). Other organization-

related problems included the lack of an organizational chart and implicit job descriptions

for the workers, poor management, lack of productivity or efficiency, incompetent

employees, among others. (De Vera, 2012)

Emotion Contagion and Leadership

Communication can be defined as the process of transmitting information and

common understanding from one person to another (Keyton, 2011). It is the creation or

exchange of thoughts, ideas, emotions, and understanding between a sender(s) and

receiver(s). Building and maintaining a positive relationship in the workplace is a must to

all kinds of organization. That every person’s communication skills affect both personal

and organization effectiveness (Brun, 2010; Summers, 2010). During interactions,

39
frequently one individual become ‘infected’ with emotions displayed by his or her

partner. A study made by Wild et al. 2001, showed that mostly unconscious component

of primitive emotional contagion’, is repeatable and fast, that stronger facial expressions

of the sender evoke stronger emotions in the viewer and that women are more susceptible

to emotional contagion than men and that stronger expressions evoked more emotions.

They proposed that the induction of emotional processes within a subject by the

perception of emotionally expressive faces is a powerful instrument in the detection of

emotional states in others and as the basis for one’s own reactions.

A process wherein an individual can “catch” the emotions from others during

their interaction is defined as emotional contagion. Neuroscience studies have shown how

individuals may observe and imitate other individual’s action or “catch emotions during

the interaction process. In a study of Minelgaite & Vaiciukynaite (2016) cited Tee

(2015), that the process of emotional contagion lies on mimicry and synchrony

mechanism, emotion experience and feedback . In a study by Yate, 2009 indicated that

recruiters rated communication skills as the most important characteristic of an ideal job

candidate. Inspirational leaders can be those who inspire followers through positive

emotion, by the process called “contagion”. A research by Sy et al., 2005 indicates that

charismatic and inspirational leaders tend to have higher intensity emotions and therefore

be more successful in “infecting” followers with their own emotions. These effective

leaders are possibly more contagious and could neutralize(negative) primary emotion of a

follower (Minelgaite & Vaiciukynaite, 2016).

40
 Emotional contagion also occurs in groups, it changes people’s moods where

people are considered “walking mood inductors”, thus continuously influencing the

moods and behaviors of others. On a day-to-day and less conscious level, there is an

evidence showing that leaders’ and managers’ positive work moods are positive affects

employees’ work performance. It plays a significant role in work-group dynamics and

gives a better understanding of this concept can lead to a greater knowledge in

understanding employees’ workplace behavior. An experimental study made in ninety-

four (94) business school undergraduates, confirms that people do not live on emotional

islands but, rather, that group experience moods at work, these moods ripple out and, in

the process influence not only other group members’ emotions but also their group

dynamics and individual cognitions, attitudes, and behavior. Emotional contagion,

through its direct and indirect influence on employees’ and work teams’ emotions,

judgements and behaviors, can lead to subtle but important ripple effects in groups and

organizations (Barsade,2002).

A study involving hospital nurses in Taiwan emphasizes that culture within an

organization is very important as it plays a large role in a happy and healthy environment,

that leaders acknowledgment and acceptance can influence their work behavior and

attitudes. When the interaction between the leadership and employees is good, the latter

will make a greater contribution to team communication and collaboration and will also

be encouraged to accomplish the mission and objectives assigned by the organization,

thereby enhancing job satisfaction (Tsai, 2011). In a similar study by Bono et al., 2007,

result have shown that supervisors were associated with employees emotions in 3 ways:

41
(a) Employees experienced fewer positive emotions when interacting with their

supervisors as compared with interactions with coworkers and customer: (b) employees

with supervisor high on transformational leadership experienced more positive emotions

throughout the workday, including interactions with coworkers and customers: (c)

employees who regulated their emotions experienced decreased job satisfaction and

increased stress, but those with transformational leadership were less likely to experience

decreased job satisfaction.

Theoretical Framework

Full Range Leadership Model (FRL)

In 1990, Avolio and Bass first introduced the Full Range Leadership or FRL, it

has given a considerable attention in testing its validity across a broad spectrum of

organizational settings. Full Range Leadership development has a comprehensive life-

span process that involves the accumulation of unstructured and structured experiences

and their impact on the maturation of both leaders and followers (Day, Zaccarro and

Halpin, 2004). The primary purpose of the FRL model is to focus on developing oneself

to develop others, where leaders invest more time in promoting the development of others

that satisfying oneself.

Components of the FRL

42
Facets of Transformational leadership

Idealized Influence (II)

It is the capability of influencing others by serving as a role model, arousing pride

in followers and demonstrating high standards of ethical and moral conduct. Such leaders

show high-performance standard, fulfill what they are expected to do and will do the

right thing. These leaders share risks to followers and are consistent in their actions. This

facet of transformational leadership is divided into two sub-dimensions: first, Idealized

influence (attribute), which describes leaders who are exemplary role models. Leaders are

admired and respected, and followers want to emulate them (Bass,1999). They inspire

power and pride in their followers, by going beyond their own individual interest and

focusing on the interests of the group and of its members (Avolio & Bass, 1995, 2004).

Second, Idealized influence (behavior), a facet of transformational leadership which

describes leaders who can be counted on to do the right thing through high ethical and

moral standards (Bass, 1999). These type of leaders manifest positive and highly

evaluated behaviors, like dominance, consciousness, self-control, a high moral

judgement, optimism, and self-efficiency. They talk about their most important values

and beliefs, they focus on a desirable vision and almost consider the moral and ethical

consequences of their actions (Avolio & Bass, 1995, 2004).

Inspirational Motivation (IM)

A facet of transformational leadership, which describes leaders who motivate and

inspire followers to commit the vision of the organization. Encourages team spirit, and

provide meaning and challenge to their follower’s work (Avolio, 1999). They articulate,

43
in simple ways, shared goals and mutual understanding of what is right and important.

They provide a vision of what is possible and how to attain them. They enhance meaning

and promote positive expectations about what needs to be done (Avolio & Bass, 1995,

2004).

Intellectual Stimulation (IS)

It identifies leaders who are able to encourage innovative thinking. Intellectual

stimulation involves associates of ideas and values (Avolio & Bass, 1995, 2004).

Describes leaders who encourage innovation and creativity through challenging normal

beliefs or views of their followers. Leaders promote critical thinking and problem solving

to make the organization better (Avolio, 1999).

Individual Consideration (IC)

Leaders who are able to coach people. It involves understanding and sharing in

others’ concerns and developmental needs and treating each individual uniquely. It

represents an attempt on the part of leaders to not only recognize and satisfy their

associates’ currents needs but also to expand and elevate those needs in an attempt to

maximize and develop their full potential (Avolio & Bass, 1995, 2004).

The Facet of Transactional Leadership

Contingent Reward (CR)

It enables the followers to perceive the consistency in leadership behavior as well

as the reliability of their leaders. It describes leaders who engage in a constructive path-

goal transaction of reward for performance (Bass, 1985). Rewards are connected to their

44
follower’s needs, which are identified and linked to what the leader wants to accomplish.

This scale identifies leaders who are able to reward achievement (Avolio & Bass, 1995,

2004).

Management-by-Exception: Active (MBE-A)

MbE describes a leader who only acts if there are deviations of standards, his

motto is “if it ain’t broken don’t fix it” (Bass, 1990). MbE-Active leaders pay close

attention to any problems or deviations and have extensive and accurate monitoring and

control systems to provide early warnings of such problems (Kirkbride, 2006). This type

of leadership focuses on a careful monitoring of deviations, mistakes and errors, and on

quick and thorough corrective measures (Avolio & Bass, 1995, 2004).

Passive/ Avoidant Leadership

It is typical for managers who do not react systematically to situations and

problems which arise. Passive leaders do not clarify misunderstandings, do not make

their expectations clear, does not set clear objectives and performance standard for their

followers (Avolio & Bass, 1995, 2004). This often has a serious negative effect on an

individual, group and organization. Laissez-faire and Management by Exception: Passive

(MBE-P) are the two types of passive/avoidant leadership.

Laissez- Faire

The absence of leadership. A leadership that avoids making decisions and

carrying out their supervisory responsibilities exemplifies it. They are not reactive or

proactive but in fact inactive and passive in their leadership role (Avolio and Bass, 1994).

45
Management-by-Exception (MBE-P)

Leaders behavior takes corrective measures, but only after the fire has started.

Thus this behavior is not proactive, but reactive and focused on punishment (Avolio &

Bass, 1995,2004). Passive MbE is leaders who fail to intervene until problems become

serious. They wait for the mistake to be brought to their attention before they take

corrective actions (Bass, 1985).

46
Figure 2.2 The Full Range Leadership Model by Bass and Avolio, 1997

47
 Figure 2.3 Conceptual Framework

Independent variables are measured using the MLQ form 5X. On the other

hand, dependent variables in this research employee’s organizational commitment. This

can be defined through the strength of employee’s identification and involvement within

the organization. The three subscales of Organizational commitment are Affective,

Continuance and Normative type of commitment.

48
Table 2.2

Independent Variable Measure

Instrument Variables Subscales
Multifactor Transformational Idealized Influence
Leadership
Questionnaire Leadership Idealized Behavior
(MLQ 5X)
Inspirational Motivation

Intellectual Stimulation

Individual Consideration
Transactional Contingent Reward

Leadership Management-by-Exception (Active)

Management-by-Exception (Passive)
Passive/ Avoidant Laissez- Faire

Table 2.3

Dependent Variable Measures

Instrument Variable Scales
Organizational Employee Commitment Affective commitment
Commitment
Questionnaire (OCQ) Continuance commitment

Normative commitment

CHAPTER 3

RESEARCH METHODOLOGY

49
This research was conducted in the capital municipality of the Zamboanga Sibugay

Province, Ipil. Questionnaires and Business Survey Questionnaire were distributed to the

different SMEs in the area. To interpret the collected data, a cross sectional survey was

used to collect necessary information with regards to the paper’s objectives on leadership

styles and employees’ organizational commitment.

Research Environment

Region 9 or also known as the Zamboanga-Sulu Peninsula is composed of three

provinces; Zamboanga del Sur, Zamboanga del Norte, and Zamboanga Sibugay and two

autonomous urban areas; Zamboanga City and Isabela City. The Zamboanga Peninsula’s

economy source are mainly from agriculture such as farming and fishing as their main

source of income. Its industry sector is characterized by a proliferation of MSMEs. The

region is known as the No. 1 commercial marine fish producing region in the country as

well as one of the top seaweeds producer. Zamboanga Sibugay is the peninsula’s newest

province (DTI).

The Master List of Establishments showed that only 17.04% out of 1408

establishments was to be considered SMEs while the remaining 82.96% falls in the

microenterprise and most of the involved in selling fish and other marine products.

Research Respondents

50
 A Master List of Business Establishments was obtained from the Municipality’s

record with a total number of 1,408 establishments which also included microenterprise.

Microenterprise was deleted and was not included in the selection process. A

combination of stratified random with proportional allocation sampling technique was

used total to select total SMEs. The 244 establishments were divided into 5 groups using

their Gross Annual Income as the basis. Group one’s Gross Annual Income from

3,000,001 to 5MM, Group two’s Gross Annual Income from 5,000,001 to 10MM, Group

three’s Gross Annual Income from 10,000,001 to 15MM, Group four’s Gross Annual

Income from 15,000,001 to 30MM and Group five’s Gross Annual Income 30,000,001 to

100MM. Then a total of 71 establishments were picked for the study. The required

sample of the study was obtained using the Sloven’s formula with an expected error of

10% (90% confidence level).

Solven’s Formula;

n=

1 + Ne2

This study examined the relationship between the managers’ leadership styles and

employees’ organizational commitment with their current organization. The survey was

conducted to the employees of the selected SMEs. Respondents were from the 20% of the

total number employees per SME with at least one year of tenure or regular employees.

Based on the time and resource availability this prerequisite was strictly observed in

obtaining the desired sample size.

51
Table 3.1

SME Employees Sample Size

Company Total number of Employees Sample Employees (20% of the
SME total employees)
A 66 13
B 48 10
C 33 7
D 28 6
E 20 4
F 20 4
G 20 4
H 18 4
I 15 3
J 15 3
K 13 3
L 13 3
M 12 2
N 10 2
O 10 2
P 10 2
Q 9 2
R 19 4
S 18 4
T 11 2
U 5 1
V 8 2
W 6 1
X 6 1
Y 4 1
Z 3 1
AA 3 1
AB 7 2
AC 8 2
AD 3 1
AE 3 1
AF 2 1
AG 8 2
AH 3 1
AI 4 1
AJ 14 3
AK 9 2
AL 5 1
AM 3 1
AN 3 1
AO 4 1

52
 AP 2 1
AQ 4 1
AR 4 1
AS 3 1
TOTAL 116

To have a better understanding, there were two types of data collected, the

primary and secondary data. The former was obtained from the selected number of

sample employees and SMEs leaders. A data is considered to be primary when the

researcher himself/herself personally gathers the information for the specified topic.

Questions were close-ended which were then designed on a Likert-scale measurement,

with a scale of zero (0) to four (4). The relationship of variables were then based on the

degree of strength of the respondent’s agreement or disagreement.

While the secondary data was compiled in Chapter 2, these were from different

sources, such as e-sources, books, and related other journals and articles (collected from

USC Database). These related studies were used to have broad knowledge and better

understanding of the chosen topic, to establish a framework consisting the basis of this

research. In addition, secondary data were used in validating and comparing the data

through existing literature and articles.

Research Instruments

The study aimed to identify the relationship between two variables, leadership

styles and employees’ organizational commitment from different SMEs. A quantitative

study was used to obtain relevant data and to address the research questions of the study.

Likert-scale was used in the two different questionnaires. Likert-scale leads to an

53
accurate conclusion about the nature of the world and it can also potentially result in

inaccurate statements about the way the world really is and perceived by respondents

(Frank and Wallen, 2008). To obtain necessary information, this study used two different

questionnaires, the Multifactor Leadership Questionnaire (MLQ) and Organizational

Commitment Questionnaire (OCQ). These questionnaires were distributed by groups

since it is not costly and less time-consuming. In addition, the researcher made use of

interviews in order to obtain qualitative data.

Multifactor Leadership Questionnaire

This instrument has been widely tested for its reliability in the concept of

leadership. The Multifactor leadership questionnaire (MLQ) has been developed and

validated (Bass and Avolio, 2004). It is considered to be the standard instrument for

identifying transformational, transactional and non-leadership scales.

The MLQ-5X is the standard instrument for assessing transformational and

transactional leadership behavior (Bass and Avolio,2000; Bass and Avolio, 2004).

The following criteria for MLQ were used for Transformational leadership

style:

 Build Trust (Idealized Attributes)

 Acts with Integrity (Idealized Behavior)

 Inspire Others (Inspirational Motivation)

 Encourages Innovative

54
  Thinking (Intellectual Stimulation)

The following criteria for MLQ were used for Transactional leadership style:

 Rewards Achievement

 Contingent Reward

 Monitors Mistake (MBE- Active)

 Fight Fires (MBE- Passive)

 Avoidant Involvement – LF

The MLQ – 5X is a self-scoring questionnaire and allows the respondents to

respond easily to all 27 items. All items were rated using a 5-point likert-scale, where 0 =

not at all, 1 = once in a while, 2 = sometimes, 3 = fairly often, 4 = frequently, if not

always. Higher scores showed the effectiveness on the perception of leadership styles

while low scores implied low effectiveness of the concept.

Organizational Commitment Questionnaire

To measure employees’ organizational commitment an OCQ model was used that

has three commitment dimensions; affective, continuance and normative commitment.

The OCQ is a self-scoring questionnaire and each dimension consists of 5

questions, with a total of 15 items. All items are rated using the 5-point Likert scale,

where 0 = strongly disagree, 1 = disagree, 2 = neither agree or disagree, 3 = agree, and 4

55
= strongly disagree. A low score implied that employee has a low perception on

organizational commitment while higher scores implied high perception in the scale.

Treatment of Data

After gathering all the necessary data, statistical techniques were utilized to

analyze the information. The survey data was processed, first relevant data was coded

and summarized the data in table form. Tables were used to summarize in the form of

numbers and percentages, where the mean and standard deviation are calculated in order

to obtain employees’ perception on leadership styles and organizational commitment.

A correlational descriptive survey design was used to attain the goal of the study

since it helped to determine the relationship between different variables by determining

the mean (M) and standard deviation (S.D) of leadership styles and organizational

commitment. The respondents were asked to encircle the number corresponding to the

degree of their agreement with each of the items in both of the MLQ and OCQ

Questionnaires, using the five-point Likert scale (where 0 = strongly disagree, 1 =

disagree, 2 = neither agree or disagree, 3 = agree, and 4 = strongly disagree. To have

better interpretation of the mean scores, the highest point scale of four (4) was deducted

(minus) to the lowest scale of zero (0) divided to the number of dimensions (3) = 1.33.

The level of interpretation for both leadership styles and organizational commitment

mean (M) are as follows (from 0 to 1.33 = low), (1.33 to 2.66 = medium), (2.66 to 4 =

high).

56
 Statistical Package for the Social Sciences (SPSS) version 20.0 was used to

analyze the collected data. The relationship between the independent variable (leadership

style) and dependent variable (organizational commitment) was computed using the Two-

tailed Pearson Correlation Analysis. It is a statistical measure of the strength and

direction of a linear association between the two variables and is denoted by r. A positive

correlation coefficient (r) indicated a positive and direct relationship, a negative

correlation coefficient (r) indicated a negative or indirect relationship, and an r of zero (0)

indicated no linear relationship between the variables (leadership styles and

organizational commitment), see table below. To determine the relationship between

gender to organizational commitment and gender to leadership styles, independent t-test

was used while ANOVA single factor was used to determine the relationship between

organizational commitment to educational attainment and leadership styles to educational

attainment. All of these tests were computed using Microsoft Excel 2016.

Table 3.2

Interpretation of Pearson Correlation (r) values are as follows;

Score Interpretation Score
+1 Perfect linear relationship -1

0.80 to 1.00 Very strong relationship -0.80 to -1.00

0.60 to 0.80 Strong relationship -0.60 to -0.80

0.40 to 0.60 Moderate relationship -0.40 to -0.60

0.20 to 0.40 Weak relationship -0.20 to -0.40

0.00 to 0.20 Extremely weak relationship -0.00 to -0.20

Pilot Test and Cronbach’s Alpha Reliability Test

57
 To ensure the reliability of the test, a pilot test was done to check if the

respondents did not encounter any difficulties while answering the questionnaires and it

was also used to assess the questions’ validity and reliability. Pilot test has been carried

out before the actual distribution of questionnaires to the selected respondents from

different SMEs. Reliability analysis is a technique of data gathering wherein results are

reliable and of similar interpretation. It is an indicator of the questionnaire’s consistency

and stability. In a Cronbach’s Alpha Reliability Test, a score of less than 0.60 is

considered poor, with the score of above 0.60 and 0.70 indicates a level of acceptability

and reliability, and when the range of reliability is over 0.80 indicates the consistencies

and good correlation.

The pilot test was conducted using 25 sets of questionnaires. These questionnaires

were then distributed to a different set of samples whom are not connected nor related to

the participating establishments. The results were analyzed with Microsoft Excel. In

Table 3.3 it showed the summary of the pilot test with a Cronbach’s’ alpha of more than

0.60, therefore the result reflected the consistencies of both questionnaires.

Table 3.3

Cronbach’s Alpha Reliability Test Result

Questionnaire Cronbach’s Total Items
Alpha
Independent Multifactor Leadership 0.81 27
Variable Questionnaire
(Leadership Styles)

Transformational 0.85 15
Leadership
Transactional Leadership 0.77 9

58
 Laissez- Faire 0.72 3
Leadership

Dependent Variable Organizational 0.79 15

(Organizational Commitment
Commitment) Questionnaire
5
Affective Commitment 0.76

Continuance Commitment 0.71 5

Normative Commitment 0.70 5

59
 CHAPTER 4

PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter contained the tabulated results of the study. Different tables containing

summary of the collected and computed data were presented by numbers and

percentages. The result reflected the importance of leadership styles to the employees’

that will affect their commitment with their organization.

Participants Demographic Characteristics

Prior to the distribution of questionnaires, the researcher explained to different

SME leaders and owners the purpose of this study. To obtain accurate and high response

rate, the researcher chose twenty-percent (20%) of the regular employees with at least

one (1) year of tenure. The researcher encountered some difficulties when some of the

employees were hesitant to fully participate. Each set of questionnaires included a cover

letter with a statement to reassure the confidentiality and anonymity of the respondents.

In addition, majority of the SMEs requested to keep their business name anonymous

since most were of conservative type.

A total of seventy-one (71) transmittal letters were distributed to the chosen

SMEs. Out of seventy-one (71) there were only forty-five (45) SMEs who responded and

a total of one hundred sixteen (116) research instruments were analyzed from each set of

questionnaires (MLQ and OCQ). Table 4.1 summarized the employees’ demographic

data. From the selected samples, most were males which comprises 80% of the total

60
sample population. From the age group, most belonged to age bracket of 28 years old to

37 years old which comprised 46% which was then followed by the age group of 18 years

old to 27 years old. Marital status showed equal in number between single and married,

some of these single in marital status were living with their partner and some had

children but was not married. Both were required to support their family. Respondents

number was higher with 1 to 3 years of tenure this is when employees are still figuring

out their involvement in the organization. Most of the participants finished with a high

school degree compared to employees with vocational and college degree and there is a

small percentage for those employees who were not able to study high school

(Elementary, 4%). Lastly, employees were well paid by their employers. Their monthly

salary showed they were paid according to the daily minimum wage while some believed

to have earned more because of their commissions.

As seen in Table 4.1 most respondents were male in the research process since

most of the participating SMEs belonged to the Wholesale and Retail Trade; Repair of

Motor Vehicles & Motorcycles (Wholesale and Retail Trade except motor vehicles and

motorcycles, Wholesale and retail trade & repair of motor vehicles and motorcycles).

Males were preferred than female because most of the works required strength when

lifting heavy containers or objects, men do not complain when their hands become dirty

while changing tires, putting grease on the motor parts, and most males were more

knowledgeable when it came to repairing cars or other vehicles. This is not only limited

to motorized vehicles but also for other types of business that belonged in this category

such as hardware and construction supply, grocery, electrical supply, and distributorship

61
Table 4.1

Participants Demographic Profile

Variables Frequency Percent
Gender Male 93 80%
Female 23 20%
Age Group 18y.o to 27y.o 34 29%
28y.o to 37y.o 53 46%
38y.o to 47y.o 24 21%
Above 47y.o 5 4%
Marital Status Single 58 50%

Married 53 46%
Other 5 4%
Years of tenure 1yr to 3yrs 44 38%
3yrs to 5yrs 19 16%
5yrs to 7yrs 24 21%
Above 7yrs 29 25%
Educational Attainment Elementary 5 4%
High School 73 63%
Vocational / TESDA 29 25%
College 9 8%
Monthly Salary 5,001 – 10,000 73 63%
Above 10,001 43 37%
N= 116

Table 4. 2

Years in Business Operation

Years NO. SMEs Percentage
1- 3years 0
3years and 1 day to 5 years 3 7%
5years and 1 day to 10 years 8 18%
10 years and 1 day to 20 years 16 35%
More than 20 years 18 40%

Table 4. 3

Type of Business Ownership

Business Ownership NO. SMEs Percentage
Single Proprietor 37 82%
Partnership 3 7%

62
 Corporation 5 11%

Table 4. 4

Business Classification
Classification NO. SMEs Percentage
Small Enterprise 38 85%
Medium Enterprise 7 15%

Table 4.5

Industry Classification
Classification NO. SMEs Percentage
Agriculture, Forestry, Fishing (Fishing and 5 12%
Aquaculture, Crop and Animal Production,
Hunting and Related Activities)

Construction (Construction of Buildings, Civil 6 13%

Engineering)

Wholesale and Retail Trade; Repair of Motor 17 38%

Vehicles & Motorcycles (Wholesale and Retail
Trade except motor vehicles and motorcycles,
Wholesale and retail trade & repair of motor
vehicles and motorcycles)

Accommodation & Food Service Activities

(Accommodation, Food & Beverage Service 9 20%
Activities)

Information and Communication (Publishing, 1 2%

Programming and Broadcasting Activities)

Admin & Support Service Activities (Travel 2 4%

Agency, Tour Operator, Reservation Service,

63
 and related activities)

Human Health Activities (Human Health) 2 4%

Other Service Activities (Repair of computers 3 7%

& personal & household goods, Other personal
service activities)

The tables above showed that most businesses that participated were owned by a

single owner (single proprietorship) and most were classified to be a small enterprise, a

business having a total asset between Php 3,000,001MM to Php 15,000,000 MM.

Majority of the businesses belonged to the Wholesale and Retail; Repair of Motor

Vehicles and Motorcycles classification, this classification involves selling new and used

goods for the use of the general public. Hospitality and Food Industry has started growing

in the province’s capital municipality. Hotels were increasing in number and restaurants

made use of available fresh seafoods and livestock in the market to provide dishes that

suit the tastes of their guests. Some of the industries were starting to increase in numbers

since the municipality is receiving more investments and while welcoming any growth

opportunity that can help the people of Zamboanga Sibugay.

Employees’ perception to Leadership styles and Organizational commitment

To identify employees’ perception on the relationship between the two dependent

variables (leadership style and organizational commitment), descriptive statistics were

used by finding the mean and standard deviation. Table 4.6 contained the summary of the

descriptive data of the different subscales of transformational and transactional

64
leadership, and laissez fair leadership style while Table 4.7 contained the descriptive data

of the three different scales of organization commitment.

Table 4.6

Mean and Standard Deviation of Employees perception to Leadership Styles

Variables M* S.D.

Idealized Influence 2.99 0.92

Idealized Behavior 2.76 1.32

Inspirational Motivation 2.76 1.03

Intellectual Stimulation 2.77 0.83

Individualized Consideration 2.91 0.84

Transformational Leadership 2.84 0.99

Contingent Reward 2.69 1.01

Management-by-Exception (Active) 2.96 1.04

Management-by-Exception (Passive) 1.16 1.02

Transactional Leadership 2.27 1.34

Laissez-Faire Leadership 1.09 1.06

Overall score for Leadership styles 2.45 0.79

Note: N= 116
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).
* Each subscale of leadership style contains three (3) items.

Table 4.6 shows the employees’ overall level of perception to leadership style was

moderated with a mean score of 2.45 and a standard deviation of 0.79 which showed the

likeness of the respondents’ scores. Among the different leadership styles, the

65
respondents had a strong level of perception to transformational leadership style (M=

2.84, S.D= 0.99), which was then followed by a moderate perception to Transactional

leadership style (M = 2.27, S.D = 1.34) and lastly, Laissez-faire leadership style had

weakest level of perception (M = 1.09, S.D = 1.06). The results suggested that

transformational leadership and transactional leadership had more recognition than

laissez-faire leadership style.

Idealized influence was the subscale of transformational leadership with the

highest mean score (M= 2.99) and has the strongest level of perception to the employees.

This score suggested that employees admired their leaders’ positive attitude to both

personal and in working environment. Leaders became their role model in whatever they

do, employees set a high standard of expectation for their leaders’ behavior and

employees expects their leaders to always do what is right.

The overall scores for leadership style suggested that employees did not consider

their leaders’ behavior as “ideal”. An ideal leader was described by the respondents with

the ability to communicate clearly, build their confidence by giving trust that a task will

be accomplished, encouraged them by giving rewards and recognition on their job

performance and a leader that they can easily approach. With the calculated mean scores

of leadership style subscales suggested that there are few employees that see their leaders

performing above their expectations by recognizing their accomplishments and

contribution to the work force. While the mean score of 2.96 for Management-by-

Exception (active) implied that followers saw proactive leader who instantly takes action

whenever the need arose or even before the problem arises. Lastly, the mean scores for

66
both Management-by-Exception (passive) and Laissez-faire leadership style reflected a

leader who is in delay in taking actions to problems and avoided responsibility to the

people and to the organization. Respondents described these leaders who do not usually

pay attention to their daily activities and who are very strict that employees are afraid to

approach them, sometimes have a “mañana habit”. Above all the leadership styles,

transformational leadership showed to be more important in the concept of leadership as

to employees’ perception.

Table 4.7

Mean and S.D Employees perception to Organizational Commitment Dimensions

M* S.D
Affective Commitment 2.87 0.21

Continuance Commitment 2.39 0.26

Normative Commitment 2.76 0.36

Overall score for Organizational Commitment 2.67 0.31

Note: N= 116
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).
*Each type of organizational commitment contains five (5) items.

Table 4.7 shows the perception level of organizational commitment of the study

sample among employees in different SMEs. Organizational commitment, as a whole, of

employees was moderate with a mean of 2.67 and a standard deviation of 0.31, which

67
suggested the similarity of the respondent’s answer with regard to organizational

commitment. This table also showed the different mean scores and standard deviation of

different organizational commitment dimensions. Employees have a strong

organizational commitment (M = 2.87, S.D = 0.21), which is then followed with strong

level of normative commitment (M= 2.76, S.D = 0.36), and lastly, with moderate level of

employees’ commitment, continuance commitment (M= 2.39, S.D = 0.26).

A strong affective organizational commitment suggested that employees see

themselves as part of the organization. It implied that majority of the employees felt that

staying with their organization was much more than just a working environment and they

themselves were satisfied and grateful for their daily experience with the organization

which would lead to their stay in the organization longer. The high level of affective

commitment implied that the respondents have the firm acceptance of the organizational

values and partial willingness to exert effort to remain in the organization (Jaron et al.,

2015). It also showed the employee’s positive attachment and their intention to serve and

stay as part of the organization.

The moderate level of continuance commitment suggested that employees’

contribution to the organization was not given attention by their leaders. Employees

chose to stay because of the benefits and compensation they are receiving since leaving

the organization would be very costly for them. While, the strong level of perception of

normative commitment shows that employees believe that they are serving a good

organization, which in return, deserves their loyalty (Jaron et al., 2015). Employees

68
demonstrated the willingness to stay with the organization because they were obligated to

do so as they owe so much from the organization and leaving would cause them a guilty

feeling. In a research by Allen & Meyer, 1996; Dunham, Grube & Castaneda, 1994, they

examined whether there was a positive or negative relationship between different types of

organizational commitment, the outcomes that are being measured, as well as the pattern

for those findings. The desired pattern is having the highest score for affective

commitment, followed by normative commitment then continuance commitment.

Table 4. 8

Pearson correlation analysis between variables (leadership styles and organizational

commitment)
Employee Affective Continuance Normative Organizational
Commitment Commitment Commitment Commitment Commitment

Leadership Styles
Transformational .334** -.047 .251** .267**
Transactional .051 -.010 -.044 .003
Laissez-Faire -.285** .012 -.344** -.295**
Note: N= 116
*. Correlation is significant at the p< 0.05 level (2-tailed).
**. Correlation is significant at the p< 0.01 level (2-tailed).

A correlational analysis was done for both MLQ and OCQ. The relationship

between two variables were analyzed using the two-tailed Pearson correlational analysis

with Microsoft Excel and SPSS 2.0. Thus, it provided correlation coefficient that

69
represented the strength and direction of a linear relationship. The p-value described the

significant relationship between variables.

Correlation between Leadership style and Organizational commitment

Table 4.8 summarizes the r value of the relationship between leadership style and

organizational commitment. From all of the leadership style, transformational leadership

styles demonstrated positively weak with a significant relationship to affective and

normative commitment. Thus, a positive r indicated that there was a positive association

between two variables.

A positive association between transformational leadership and affective

commitment denotes that leaders’ behavior have a significant relationship on the

affective commitment of the employees. A sense of loyalty and duty underlying an

employee’s normative commitment influences employee’s decision to with the

employing organization because they feel they out to do so (Bargaim, 2003). They chose

to stay because they felt that the organization gave them importance, that even though

work was challenging, everything seemed so easy because of the positive work attitude of

their leaders and their vision with the company became as one.

Transformational leaders have the ability to promote commitment by using their

charisma, putting emphasis on values and relation between employees’ effort and goal

achievement. Employees are considered to be the most valuable assent of an

organization. While the positive association of normative commitment suggested that

70
employees perceived an obligation to stay with the organization as they were working

with a transformational leader.

The negative association of continuance commitment to transformational

leadership suggested that SME employees felt they do not belong to the organization

because there may be no other alternatives or quitting job would be at great cost. This

result supports the study of Porter (2015) which described that transformational

leadership behavior was significantly positive related to both affective and normative

commitment. However, this contradicts the study of Zaraket & Sawma (2018), that

showed a positive relationship between transformational leadership and continuous

commitment among Lebanese in a banking sector. Superiors who support and respects

employees were found to have a higher commitment and employees expressed their

desires in a leader who recognizes them, respect and gives them importance as they work

hard for the organization. This has shown the importance of affective and normative

commitment dimensions in a respondent’s perception to organizational commitment.

A moderately positive correlation existed between transactional leadership and

affective commitment. An extremely weak and negative correlation between continuance

and a moderately weak but negative correlation with normative commitment has no

significant relationship between transactional leadership style and with all dimensions of

organizational commitment. The absence of significant relationship with affective and

continuance commitment pertains to a leaders’ behavior in giving rewards and being

proactive is not related on how employees feel on wanting and the need to stay with the

71
organization. This is similar with the study made by Hayward, Goss and, Tolmay (2004)

which shows no correlation found between transactional leadership and affective,

normative and continuance commitment. This is also supported by Zaraket & Sawma

(2018) that transactional leadership shows no significant relationship with the three

dimensions of organizational commitment.

Laissez- Faire leadership style showed an extremely weak association with

continuance while a negatively weak association with affective and normative

commitment. Laissez-Faire demonstrated a significant relationship between affective and

normative commitment. This negative correlation reflected a negative effect on

employees’ commitment because of the non-intervening / avoidant behavior of a leader.

Whenever an employee experienced of laissez – faire leadership it was strongly

associated with a reduced level of commitment to the organization. This is supported by

the study of Garg & Ramjee (2013), which showed a weak but significant and negative

correlation between laissez-faire leadership behavior and affective commitment as well as

normative commitment.

The above findings showed that transformational leadership style had a positively

weak but significant effect on the overall organizational commitment. This have put

emphasis with the important role of a leader that gave importance to its organization and

shows a good quality of a leader among its followers. According to Toffler (1990), one of

the reasons why there was a weak correlation between transformational leadership

behavior could be the fact that professionals derive their rewards from inward standards

72
of excellence, from their professional societies and from the intrinsic satisfaction of their

task. While, transactional leadership style that does not have significant relationship with

organizational commitment. This supports the research of Almutairi (2013) with Saudi

Arabia Airlines, results showed no relationship between transactional leadership and

employees’ organizational commitment. While, laissez-faire leadership style

demonstrated a negatively weak but with significant relationship to the overall

organizational commitment. According to the findings made from a Turkish logistics

industry, charisma, intellectual stimulation and individualized consideration are most

used instrument of transformational leaders (Zafer Acar, 2012). This is also supported by

the study of Wahab et al. (2016), who found that transformational leadership was highly

practiced among academic leader. This study suggested that when leaders practice

transformational leadership style this will increase employees’ commitment to the

organization and an inactive one, contributed to lessen employees desire to stay.

Gender Perception to Organizational Commitment

In order to identify differences between gender (male / female) in each of the

organizational commitment an independent sample t-test was used. Independent sample t-

test used to measure scores of the same. The computed independent t-test indicated that

affective commitment and continuance commitment had a significant difference between

male and female, while normative commitment showed no significant relationship

between gender. By looking at the mean score of males (M = 2.96), male employees had

a stronger feeling of commitment rather than the female. The findings of the study were

inconsistent with Pomsri (2018), in which affective and normative has no significant

73
differences between male and female while continuance found to have a significant

different. This also contradicted the study of Arrifin & Ha (2015), in which all

dimensions of organizational commitment were found to have no significant differences

between male and female.

Table 4.9

Independent T-test of Gender in relationship to Organizational commitment

Variables Male Female df t p
M* S.D M* S.D
Affective Commitment 2.96 0.52 2.50 0.46 1.98 0.01**
Continuance Commitment 2.37 0.29 2.50 0.27 1.98 0.30**
Normative Commitment 2.81 0.42 2.55 0.29 1.98 0.07
114
Note: *from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong)
** Significant at p < 0.05

Relationship of Educational Attainment and Organizational Commitment

To obtain the respondents’ educational level, they were asked to check the box of

their corresponding highest educational attainment. As shown from Table 4.1 the

respondents had three options to choose from that represented their answer with regard to

the level of education. As seen, 63% of the total respondents have been to high school

(Secondary School) some finished high school, and some did not. The lowest group

belonged to Elementary or Primary School that consisted 4% of the total respondents. To

better understand the employees’ commitment to their educational attainment level,

ANOVA analysis was used.

Employees’ commitment is affected by many factors, one of which is their

educational attainment. Employees from primary school (elementary) tend to have the

74
strongest commitment to their organization. These employees were afraid to transfer to

other companies since their educational attainment have become a significant

requirement in applying for a job. Some would just stay to their current organization as a

sign of appreciation for giving them the chance to work. These employees gave their

loyalty to the employer who have helped them.

Vocational and College graduate employees may have a strong commitment

(based on the computed data) but when there is opportunity outside the organization most

likely they will grab it especially if there is a better salary offer. These employees know

that some big businesses would prefer to hire them than those with lower degree of

education. This group of employees seem to be the ones who transfer constantly

whenever they do not feel happy with their work.

Table 4.10

Educational Attainment and Affective Commitment

N M* S.D F p
Elementary (Primary School) 5 3.84 0.03 2.94 0.04
High School (Secondary School) 73 2.85 0.59
Vocational School/ TESDA 29 2.80 0.47
College 9 2.82 0.74
Note: Significant at p < 0.05
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).

Table 4.10 shows the significant difference between employees’ educational

attainment and affective commitment. Employees with different educational attainment

demonstrated strong level of organizational commitment. While employees who are at

the elementary level had the highest scores among the four groups followed by

75
employees with from high school, college and lastly employees who have finish

vocational school has the lowest mean score.

Table 4.11

Educational Attainment and Continuance Commitment

N M* S.D F p
Elementary (Primary School) 5 2.44 0.59 0.72 0.54
High School (Secondary School) 73 2.42 0.30
Vocational School / TESDA 29 2.26 0.22
College 9 2.49 0.44
Note: Significant at p < 0.05
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).

Table 4.11 showed that among the three level of education, employees from

elementary showed the highest mean score. The scores of employees who only finished

elementary level could mean that they stayed because it was hard for them to transfer to

other companies because of their level of education but there was no statistically

significant difference between the three dimensions of organizational commitment and

educational attainment of employees. Scores from different level demonstrated a

moderate relationship but is not statistically significant because p > 0.5. This signified

that employees’ educational attainment did not affect employees’ perception to

continuance commitment.

76
 Table 4.12

Educational Attainment and Normative Commitment

N M* S.D F p
Elementary (Primary School) 5 3.36 0.21 3.22 0.03
High School (Secondary School) 73 2.80 0.43
Vocational School / TESDA 29 2.66 0.43
College 9 2.79 0.17
Note: Significant at p < 0.05
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).

As seen in Table 4.12 employees from different educational attainment

demonstrated a statistically significant relationship with a normative commitment. Again,

employees who only finished elementary level demonstrated to have the strongest level

of commitment then followed by employees from high school, employees from college

and lastly employees whom graduated from vocational courses.

Relationship of Employees Genders’ Perception to Leadership Style

Table 4.13

Independent T-test of Gender in relationship to Leadership Style

Variables Male Female df t P
M* S.D M* S.D
Transformational 2.82 0.30 2.93 0.15 1.98 0.33**
Transactional 2.23 0.23 2.44 0.12 114 1.98 0.05
Laissez- Faire 1.04 0.76 1.29 0.67 1.98 0.22**
Note: *from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong)
** Significant at p < 0.05

Table 4.13 showed how a male and female employees perceived their leader.

Employees see their leader who is “ideal”, a leader who has the quality considered to be

an excellent leader. The computed data emphasizes that female has a strong perception to

their leaders’ leadership style. The female employees have shown to be more observant

77
on how their leaders behave within the workplace. During an interview, employees put

emphasis on their leaders’ behavior “getting along with others” to every employees

within the organization. According to these employees, leaders who constantly kept an

eye on them are the leaders who put importance in their presence. A leader’s passive

behavior can truly affect employees’ perception, a leader who tends to be lazy are leaders

who avoid and disseminates his responsibility to others. As to other employees, they are

discouraged to work when their leader demands more performance while the former does

is to command and do nothing.

Relationship of Employees Educational Attainment and Leadership Style

Employees would always prefer leaders who guide and motivate them. To those

employees who were not able to study beyond elementary are more willing to learn and

listen as they knew that they lack education. For employees who have gained college

degree, most of them rejects learning while some are willing to learn. This behavior can

be observed to any type of industry. Training is commonly done in big companies,

participants are employees who were able to finish college degree yet, not all are willing

to listen and participate because others have an attitude of assuming that they knew what

they were doing and do not need to be trained every year while some the just don’t listen

at all.

Table 4.14 showed that employees with elementary level has the strongest

perception to a transformational type of leader. The scores from different educational

attainment showed a significant relationship to transformational leadership style.

78
Employees’ perception of an “ideal or effective” leader is the one that knows how to

inspire, motivate, gives challenges, and mentors them. Table 4.15 showed no significant

relationship between employees’ perception to transactional leadership style and their

level of educational attainment. Lastly, Table 4.15 result showed that employees

educational attainment has a significant relationship on their perception to laissez-faire

leadership style.

Table 4.14

Educational Attainment and Transformational Leadership Style

N M* S.D F p
Elementary (Primary School) 5 3.17 0.54 1.36 0.26
High School (Secondary School) 73 2.83 0.21
Vocational School/ TESDA 29 2.87 0.39
College 9 2.61 0.16
Note: Significant at p < 0.05
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong)

Table 4.15

Educational Attainment and Transactional Leadership Style

N M* S.D F p
Elementary (Primary School) 5 2.18 0.77 0.31 0.82
High School (Secondary School) 73 2.28 0.18
Vocational School/ TESDA 29 2.23 0.26
College 9 2.37 0.10
Note: Significant at p < 0.05
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).

Table 4.16

Educational Attainment and Laissez- Faire Leadership Style

N M* S.D F p

79
 Elementary (Primary School) 5 0.20 0.20 4.15 0.01
High School (Secondary School) 73 1.16 0.71
Vocational School/ TESDA 29 0.89 0.73
College 9 1.67 0.56
Note: Significant at p < 0.05
*(from 0 to 1.33 = weak), (1.33 to 2.66 = moderate), (2.66 to 4 = strong).

The study reveals the importance of both leadership styles and organizational

commitment as the business success depend to its employees. The transformational type

of leadership was considered to be the effective type of leadership in the SMEs in Ipil,

Zamboanga Sibugay. However, some aspects of leadership styles must be improved to

increase employees’ commitment. First, employees would always want to be recognized

especially for their work performance. Business leaders can provide additional rewards

for the identified employee of the month like giving a gift check. Model employees can

be chosen by looking at their work performance, attendance, and who follows the

company rules. In this way, some of the employees will be motivated to work well as

they will be able to receive rewards which will be both beneficial to the organization and

to the employees.

Second, leaders must maintain a positive working environment by calling them

with their names rather than giving them rude nicknames. The latter maybe considered as

a joke to some but for some, they may take it seriously and may become the basis of

their negative perception towards the leader thus affecting their commitment and the

image of the company or the leader as well. Leaders should be clear when giving

comments about their work performance not just by giving them unclear phrases and

saying it with mixed joke, some employees may not take it wrongly.

80
 Third, new employees and old employees must feel a bond between them and the

organization. This may be done through a deep and personal conversation with the

employees. The content could be sharing of experiences not only about work but about

their families, plans in life, values and learnings in life. In this way the employees feel

valued and trusted by their managers. Out of office corporate event is one way to build a

strong team, these are commonly known as summer outing or team building through this,

it can give them chance to bond with fellow employees and their leaders.

Lastly, participatory decision making, this process involves sharing ideas between

leaders and followers. It is a joint decision-making as it influences followers’

commitment and increase their feeling of responsibility as they feel that the management

has given importance with their beliefs and ideas.

CHAPTER 5

SUMMARY, FINDINGS, CONCLUSION AND RECOMMENDATIONS

SUMMARY

81
 In a fast-growing economy the researcher gained interest in studying the

leadership styles of SME leaders and on how their organizations’ success related to the

loyalty of their employees. Leadership is a process whereby an individual influence a

group of individuals to achieve common goal (Northouse, 2004). The Full Range

Leadership Model identifies the different types of leadership styles (transformational,

transactional, and non-transactional laissez-faire). Organizational Commitment plays an

important role in the psychological attachment of an individual towards his organization.

Organizational commitment was presented as a multidimensional with three dimensions;

affective, continuance, and normative commitment. The relationship between

organizational commitment and leadership style has been documented in several

literature of management. Organizational commitment is a psychological construction of

responsibility that an employee has towards the mission and direction of an organization

(Chelliah, 2015). The study was conducted in a first-class municipality situated in the

Southwest part of the Philippines has gained attention of the investors from different

regions and even overseas. Ipil, Zamboanga Sibugay has grown and prosper through the

years and showed a significant increase in number of business establishments within the

municipality. A combination of stratified random with proportional allocation sampling

technique was used during the selection process of the SMEs. Employees were asked to

rate their manager’s behavior with two (2) sets of questionnaires, MLQ and OCQ. Data

were analyzed using the Microsoft Excel and validated with SPSS version 20.0. The

Pearson correlation analysis was used to analyze the relationship between the two

variables, leadership styles (independent variable), organizational commitment

(dependent variable). The result showed that transformational leadership has a

82
significantly positive correlation with affective and normative commitment, while

laissez-faire leadership style has a negative but significant correlation with affective and

normative commitment.

SUMMARY OF THE FINDINGS

Organizational commitment has gained importance in the management

concept as the business success depends on its peoples commitment and loyalty. The

findings of the study are the following:

1. Among the 71 SMEs there were only 45 establishments who have participated

during the study process, with a response rate of 63.38%. From the 45 SMEs,

82% belonged to Single Proprietorship which is considered to be a family

business. These family businesses have existed for more than 3 years while 18%

operated for more than 20 years. As to business classification, 38% belongs to

businesses with an asset size of Php 3,000,001 to Php 15,000,000 (38 SMEs)

while the remaining 7 SMEs fall under the classification of Medium Enterprise

with an asset of more than Php 15,000,001 – Php 100,000,000. As to Industry

Classification, most of the respondents belonged to the Wholesale and Retail

Trade, Accommodation & Food Service Activities, Agriculture, Forestry and

Fishing. These industries showed highest in number and thus it signified the

presence of competition between these industries compared to other types of

industry.

83
 2. The employees showed a moderate level of perception in SMEs leadership styles.

Transformational leadership style is given more importance by the employees

compared to the transactional leadership style. Employees perceived to have a

strong level of organizational commitment. Respondent SME employees have a

moderately high level of continuance commitment.

3. Transformational Leadership style displayed a positively weak correlation with a

statistically significant relationship with employees organizational commitment.

Transactional leadership style has an extremely weak and positive correlation but

has no statistically significant relationship with employees organizational

commitment. Laissez- Faire leadership style has a negatively weak correlation

with a statistically significant relationship with employees organizational

commitment.

4. As seen from the gathered data, organizational commitment and leadership styles

have a significant relationship. Employees organizational commitment may be

improved by giving rewards based on their work performance. It is also important

to maintain a positive working environment where open communication is

observe with the use of polite words. Team work also give a positive influence on

the employees job satisfaction and increases employees’ involvement by

participating in a joint decision making.

CONCLUSION

84
 This study focused on the leadership styles that influence the organizational

commitment of the employees in the SME industry in Ipil, Zamboanga Sibugay. The

research was conducted with following the objectives; to identify SME employees

perception on leadership style and organizational commitment and to investigate the

relationship between different leadership styles to organization commitment dimensions.

The total outcome of this study pointed out that employees saw that transformational

leadership has a positive and significant relationship with their affective and normative

commitment and laissez-faire leadership style has shown a negative but significant

relationship with affective and normative commitment, while transactional displayed no

relationship with organizational commitment dimensions.

RECOMMENDATION

As a leader, they always wanted their organization to grow over time and it will

be possible if they attain a favorable working environment. A leader should put emphasis

on developing efficient teamwork, showing warm concern and to trust its people because

a leaders role is to build commitment to his followers by assuring that the organization

exerts effort in increasing employees affection and job satisfaction. Employees

attachment to organization may be improve by improving the factors of rewards, support

from the upper management/ direct supervisor, a work-family working environment, job

conditions, job security and career growth opportunities. These factors suggests that

employees commitment may be improve through different strategies that leads to

increase level of job satisfaction, job performance, and loyalty. Leaders should also focus

on recognizing their employees achievement and expectation, and taking preventive

85
action rather than not doing anything unless the problem become serious. Lastly, leaders

should improve their negative behavior by using clarifying and encouraging words when

giving feedbacks rather than insulting and discouraging words.

SUGGESTIONS FOR FUTURE RESEARCH

To make it more interesting in the future, researchers may involve a bigger

sample of the same business industry. The findings of this research may not be

generalized to the whole SMEs in the country. A comparison can also be made between

the same industry but of different city or area. It is also helpful for the future studies to

include additional variables such as absenteeism, compensation and benefits, job

performance, job satisfaction, and work location. Lastly, the researcher may consider

using a different measurement tool in measuring different variables.

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 APPENDIX A

TRANSMITTAL LETTER
(SAMPLE)

May 2, 2018

Wenifredo Chiong
Contao Traders
Ipil, Zamboanga Sibugay

Sir,

I am a Master’s in Business Administration student of the University of San

Carlos conducting a research on the topic “The Relationship of Leadership styles and
Employee Commitment of SMEs in Ipil, Zamboanga Sibugay”. I am requesting for your
assistance in providing a sincere response from you and your employees contained in the
attached questionnaire. All information provided will be treated strictly confidential and
for academic purpose only.

Looking forward to your favorable response.

Sincerely,

Mikee Beneve C. Sala, RMT

M: 0917-3106703
Email add: mikeesala17@yahoo.com

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 APPENDIX B

Business Survey Questionnaire

Good day! I, Mikee Beneve C. Sala, a Graduate student of the University of San
Carlos (USC) pursuing a Master in Business Administration(MBA) humbly ask
your participation in this survey for the completion of this research. In this
questionnaire, you are asked to answer different questions that could give us a
background of your company. Whatever information gathered will be treated
confidential and is used for academic purpose only. If you are hesitant to answer
some of the questions kindly, leave it blank. Thank you.

Name: ____________________________________________________

Job Title/Position: ___________________________________________

Business Name: _____________________________________________

Year Established ____________________________________________

Total number of employees: ___________________________________

Asset Estimate
Small Enterprise
Php 3 Million – Php 9 Million ___
Php 9,000,001 Miliion – Php 15 Million ___

Medium Enterprise
Php 15,000,001 Million – Php 60 Million ___
Php 60,000,001 Million – Php 100 Million ___

Does your company have more than one location/ branches? __________

Does your company involve in business online or e-commerce?

Yes ___ No ___

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 Does your company serve consumers, businesses or both?

Consumers ___ Businesses ___ Both ___

Which marketing channel do you use to promote your business?

Radio ___ Facebook ___

Newspaper ___ Others (Please specify): _____________
Part 2 – MLQ for Employee Opinion Survey

I, Mikee Beneve Sala, an MBA student of USC, is requesting you to participate in this

survey. You are requested to provide your organization leadership styles from the related

information that will help improve your working environment. A sample of different

situations is provided in this paper. If you are unsure of your answers, please leave the

item blank. Please answer the following items below by encircling a number 0 (not at

all) to 4 (Frequently, if not always) that best reflect your leader’s behavior. Whatever

information you give is strictly confidential and is used for academic purpose only.

Thank you for your time and cooperation.

Use the following rating scale:

0 1 2 3 4
Not at all Once in a while Sometimes Fairly Often Frequently, if not
always

1. Re-examines critical assumptions whether they are appropriate. 0 1 2 3 4

2. Ask opinions when problem arise. 0 1 2 3 4

3. Encourages us to give new ideas that maybe helpful to

the business. 0 1 2 3 4

4. Delegate responsibilities to every member of the group. 0 1 2 3 4

5. Acts in a way that builds our respect for him. 0 1 2 3 4

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6. Go beyond self-interest for the good of the group. 0 1 2 3 4

7. Seek different views and opinions when solving problem. 0 1 2 3 4

8. Express confidence that objective will be achieved. 0 1 2 3 4

9. Provide visions on how assignments can be achieved. 0 1 2 3 4

10. Treat me as a unique individual. 0 1 2 3 4

11. Helps me to develop my strengths. 0 1 2 3 4

12. Emphasizes importance of team-work, as it is part our

individual development. 0 1 2

3 4

13. I am given them opportunity to explain and express myself before

giving sanctions. 0 1 2

3 4

14. Emphasizes the importance of values, beliefs and work ethics. 0 1 2 3 4

15. Sanctions were given corresponding to our wrong doings. 0 1 2 3 4

16. Shows satisfaction when I met expectations. 0 1 2 3 4

17. Gives reward to those who perform well. 0 1 2 3 4

18. Acknowledge my contribution to the organization. 0 1 2 3 4

19. Keeps track of business daily inventory even without problem. 0 1 2 3 4

20. Monitors daily business operation. 0 1 2 3 4

21. Sanctions will be given to those who fail to follow

implemented rules or standards. 0 1 2

3 4

22. He demonstrates that problem must me chronic before

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 taking actions. 0 1 2 3 4

23. Waits problems arise before taking actions. 0 1 2 3 4

24. Fails to interfere until problems become serious. 0 1 2 3 4

25. Avoids our concern and problems. 0 1 2 3 4

26. Do not provide enough guidance to employees. 0 1 2 3 4

27. Delays responding to urgent questions. 0 1 2 3 4

===================Thank you for your cooperation!===================

Part 3 –OCQ for Employee Opinion Survey

Lastly, I would like you to participate in a survey that will help improve the working

environment of employees. Participation in this survey is voluntary and confidential. No

individual data will be reported.

The following statement concern how you feel about your work in the organization.

Please indicate the extent of your agreement or disagreement with each statement as

objectively by encircling a number from 0 to 4. Thank you in advance for your

indispensable cooperation.

Use the following rating scale:

0 1 2 3 4
Not at all Once in a while Sometimes Fairly Often Frequently, if not
always

1. I enjoy sharing nice facts about my organization with people

outside it. 0 1 2 3 4

2. I can feel emotional attachment with my current organization 0 1 2 3 4

103
 3. The organization has a deep personal meaning for me. 0 1 2 3 4

4. I can feel sense of belongingness in my organization. 0 1 2 3 4

5. I feel like “part of the family” in my organization. 0 1 2 3 4

6. Options wouldn’t be a problem when leaving the organization. 0 1 2 3 4

7. Leaving this organization would be a personal sacrifice – where my

abilities may not match the benefits offered. 0 1 2

3 4

8. I fear that leaving the organization would leave me no

available alternative. 0 1 2

3 4

9. It would be difficult for me if I choose to leave the organization

right now. 0 1 2 3 4

10. Staying with my job is a matter of necessity as much of desire. 0 1 2 3 4

11. I can see myself spending my whole career with the organization. 0 1 2 3 4

12. Whenever better job offer arrives, I would be hesitant to leave

my organization. 0 1 2 3 4

13. People these days moved from one company to another too often. 0 1 2 3 4

14. I believe that the value of loyalty is to remain in one organization. 0 1 2 3 4

15. I continue to work because there is a sense of moral obligation. 0 1 2 3 4

===================== Thank you for your cooperation!===================

104
 Part 2 - MLQ for Employee Opinion Survey (CEBUANO VERSION)

Ako si Mikee Beneve C. Sala, usa ka estudyante sa kursong MBA sa University of San

Carlos sa Cebu. Ni duol ko kanimo arong mangayo sa imong tabang sa pagtubag niining

maong “survey”. Naghangyo ko nga imong tubagun ang mga pangutana basi sa imong na

obserbahan sa pamaagi sa pagdumala sa inyong mga manager o kaha sa imong amu nga

nanagiya sa imong trabaho-an.

Ang tanang impormasyon nga makuha niining imong pagtubag sa mga pangutana

magpabiling sekrito, pribado ug dili gayud makahibalo ang imong mga manager ug amo.

Palihug lingini ang numero sa inyung napili-an nga tubag ngaa lang kanimo gipakita nga

kinaiya ug pamaagu sa pagdumala sa imong amo o kaha manager. Kung galing wala kay

matubag sa pangutan , ipabilin lang nga walay lingin ang maong numero.

Salamat!

105
Gamita kini nga mga numero para makatabang sa inyung pagtubag:

0 1 2 3 4
Walag yud Nihit Panagsa Kadaghan Pirmi

1. Naga-timbang timbang kung ang iyang solusyon oyun sa

problema. 0 1 2 3 4

2. Mangayuug opinion kung naay mga diskusyon. 0 1 2 3 4

3. Mangayu ug mga bagong ideya nga makatabang sa trabahuan. 0 1 2 3 4

4. Ipa-malihug ang mga trabaho sa mga empleyado. 0 1 2 3 4

5. Mulihok sa sakto nga pamaagi para respetuhon namu siya. 0 1 2 3 4

6. Huna-hunaun ang ka-ayuhan sa tanang empleyado

dili lang ang para sa kaugalingon. 0 1 2

3 4

7. Mangutana ug mga “suggestions” para sa giatubang nga problema. 0 1 2 3 4

8. Mo dayeg kung maganahan sa trabaho. 0 1 2 3 4

9. Muhatag ug mga ideya kung unsaun mahuman ang

trabaho ug dali pero in sakto. 0 1 2

3 4

10. Gi-respeto ang akong pagka-tao. 0 1 2 3 4

11. Gitabangan ko nga mahimong maayu nga tao. 0 1 2 3 4

12. Gina hatagan ug importansya ang pag-tinabangay

para sa among kaayuhan. 0 1 2

3 4

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13. Gihatagan ko ug prebilihiyo nga mu esplikar sa akong sayup

sa dili pa mohatag ug silot. 0 1 2

3 4

14. Gihatagan ug importansya ang “values, beliefs and work ethics”

sulod sa trabahuan. 0 1 2

3 4

15. Kung kami masayup mahatagan mi ug silot or punishment. 0 1 2 3 4

16. Nagpakita ug kumpyansa nga mahuman ang mga buhatunong

trabaho. 0 1 2 3 4

17. Muhatag ug pahalipay sa mga maayu mo trabaho. 0 1 2 3 4

18. Hatagan og pagtagad ang mga natabang nako sa trabaho. 0 1 2 3 4

19. Ga-bantay sa negosyo arun malikayan ang problema. 0 1 2 3 4

20. Ga bantay sa pang-adlaw-adlaw nga trabaho sa negosyo. 0 1 2 3 4

21. Kung dili masunod ang balaud sa kumpanya hatagan mi ugsilot. 0 1 2 3 4

22. Dili muatubang sa problema kung dili pa kini mu grabe. 0 1 2 3 4

23. Muhulat mudako ang problema bago sulbarun. 0 1 2 3 4

24. Dili mutabang hangtod di mudako ang problema 0 1 2 3 4

25. Galikay sa mga atubangunong problema. 0 1 2 3 4

26. Wala magahatag ug giya sa mga trabahante. 0 1 2 3 4

27. Dugay mutubag sa mga pangutana nga nangita og paspas

nga tubag. 0 1 2 3 4

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====================Salamat sa inyung kooperasyon!====================

Part 3 –OCQ for Employee Opinion Survey (CEBUANO VERSION)

Ang mga amo sunod nga gapangutana kabahin sa inyong gibati sa inyong kompanya.

Palihug lingini ang inyung napili-an nga numero gikan sa 0 hangtud sa 4. Inyung mga

tubag gisigurado nga pribado ug dili makaabot sa inyung management. Salamat sa inyung

oras ug kooperasyon!

108
Gamita kini nga mga numero para makatabang sa inyung pagtubag:

0 1 2 3 4
Walag yud Nihit Panagsa Kadaghan Pirmi

1. Nalipay ko nga muhisgot sa mga tao sa gawas sa trabaho ang

sa akong gitrabahuan. 0 1 2

3 4

2. Nakabati ko ug emosyonal nga koneksyon sa akong trabaho. 0 1 2 3 4

3. Ang akong trabaho naa’y pulos sa akong kinabuhi. 0 1 2 3 4

4. Nakabati ko nga kabahin ko ni ining gitrabahoan. 0 1 2 3 4

5. Pamilya ang akong panglantaw sa akong gitrabahoan. 0 1 2 3 4

6. Daghan ra ko ug kapili-an kung muhawa ko sa akong

gitrabahoan. 0 1 2 3 4

7. Personal nga sakripisyo ang paghawa nako kay kung muhawa ko

basin akong abilidad dili mao ilang gipangita. 0 1 2

3 4

8. Kung ako mu hawa basi wala nako’y padulngan. 0 1 2 3 4

9. Maglisud kung ako muhawa ug mubalhin ug

bagong trabaho. 0 1 2 3 4

10. Mas kinahanglan nako ni nga trabaho kaysa mangita pako

og lain ngagusto nako. 0 1 2 3 4

11. Nakita nako ang akong kaugalingun nga mudugay sa akuang

gitrabahuan. 0 1 2 3 4

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 12. Maglisud ko hu hawa sa akuang gi trabahuan kung naa man

koy bagong makit-an nga trabahuan. 0 1 2

3 4

13. Daghang tao ang mag sige balhin-balhin ug kompanya. 0 1 2 3 4

14. Sukdanan sa maunongon (loyalty) ang dili sa pagbalhin-balhin

og trabaho. 0 1 2

3 4

15. Ni padayon ko og trabaho kay alang kanako ako kining obligasyon

sa katawhan. 0 1 2

3 4

===================Salamat sa inyung kooperasyon! =====================

110
 APPENDIX C

Demographic variable and Organizational commitment Summary Table

Author Year Discussions
Publication
Arrifin & Ha 2015 The investigated among Malaysian hotel
employees reveals that there is no significant
difference between the three dimensions of
organizational commitment and gender. However,
the findings showed a significant difference
between educational level and the three dimensions
of organizational commitment.

Asmawi & Khalili 2012 The study investigates gender difference on

organizational commitment in Iran’s SMEs and
found that men and women have the same level of
affective, continuance and normative commitment.
In overall organizational commitment women have
greater level of normative commitment than men.

Bakan et al. 2011 Study shows that education levels with higher
levels of commitment are graduate from university,
vocational school and secondary school.

Increase in education level, employee commitment

become more and more stronger.
Farooq & Ahsan 2013 The study concluded that male teachers are
relatively more committed to their organization as
compared to female.

Jaron, Sandoval & 2015 Employees with high school levels showed highest

111
 Garcia score in affective commitment. Employees are
characterized to have string will to accept values of
the organization and exert effort to stay.

Jaron, Sandoval & 2015 The study concluded that organizational

Garcia commitment does not show significant difference
when grouped according to gender.

Labrague et al. 2018 The study identifies that Filipino nurses in

managerial position with higher compensation has
higher organizational commitment than staff nurse.

Pomsri, C. 2018 The study concluded that male employees has

stronger feeling and desire to stay with their current
organization because they felt high economic and
social costs involved with leaving. That male
employees are more attracted to higher salaries and
occupational position in the studied bank.

Relationship between Leadership Style and Organizational commitment Summary table

Author Year Discussion of Results

112
 Publication
Almendeel 2019 A study among teachers at the international school
in Jeddah shows that ethical leadership and
continuance organizational commitment has a
positive significant relationship.

Alyn 2010 Firefighters shows that there is a positive linear

relationship between transformational and
transactional leadership style to organizational
commitment while a negative linear relationship
exist between laissez-faire and organizational
commitment.

Abuzaid 2018 shows that there is a positive significant

relationship between ethical leadership and two
components of organizational commitment,
namely, affective and normative commitment and
shows no relationship with continuance
commitment

Baladez 2014 Transformational leadership have a negative but

statistically significant relationship with
follower’s continuance commitment and between
leader’s transactional leadership styles and the
followers normative commitment.

Bargaim, J. 2002 A sense of loyalty and duty underlying an

employee’s normative commitment influences
employees’ decision to remain with the employing
organisation because they feel they ought to.

Befekadu & Feleke 2015 Laissez-faire leadership behavior showed a weak

but significant positive relationship with

113
 organizational commitment.

Dixon 2013 A positive relationship with affective commitment

and transformational leadership for a project
managers while normative and continuance
commitment does not show a positive relationship
with transformational leadership style.

Garg, A. & 2013 A study conducted to the employees of Parastatal

Ramjee, D. company in Africa shows a weak but negative
correlation between laissez-faire leadership
behavior and affective commitment as well as
normative commitment.
Limsala & 2008 A study that examines how project managers’
Ogunlana leadership style correlated with the outcome on its
subordinates’ commitment and work performance
revealed that transformational leadership style has
positive association with work performance and
organizational commitment.

Lo et al 2009 Results from manufacturing industry in Malaysia

showed that transformational leaders are more
able to bring commitment in employees than
transactional leaders.

Poddar 2012 An empirical study between leadership style and

employee commitment showed that both
transformational and transactional leadership has a
positive impact on the employees level of
organizational commitment and that demographic
variables such as age, education, monthly income,
and marital status had a significant impact on
employee commitment.

114
 Ponnu & 2009 Ethical leadership behavior has a positive impact
Tennakoon on employee organizational commitment and
employee trust in leaders.

Randeree & 2012 That both transformational and transactional

Chaudry leadership shows a significant relationship with all
dimensions of organizational commitment.

Shin 2013 Inspirational motivation have the strongest effect

on organizational commitment.

Toffler, A. 1990 One of the reasons why there is a weak correlation

between transformational leadership behavior
could be the fact that professional derive their
rewards from inward standards of excellence,
from their professional societies and from the
intrinsic satisfaction of their task.
Wiza & 2014 From 160 respondents the study revealed a
Hlanganipai significant and positive relationship between
transformational leadership and affective and
continuance commitment while transactional
leadership has a significant and positive
relationship with normative commitment only.

Zhuplatova 2015 That there is a positive significant relationship

between transformational leadership style and
affective commitment, revealing that
transformational leadership is a strong predictor of
affective commitment.

115
 APPENDIX D

TIMETABLE OF ACTIVITIES

April 10, 2018 – Proposal Hearing

April 30 – June 5, 2018 – Distribution of Transmittal letter and Questionnaires

June 15 – June 30, 2018 – Collection of Data for Cronbach’s Alpha Reliability Test

July 1 – September 15, 2018 – Collection of Sample data

116
September 16 – October 20, 2018 – Analysis of data with SPSS, done with chapter 4

November 11-13, 2018 – Done with Chapter 5

December – February 14, 2019 – Revision of Paper

March 20, 2019 – Oral Defense

March 21 – April 9, 2019 – Oral Defense Paper revision and Printing

April 9, 2019 – Deadline for Oral Defense Paper revision

APPENDIX E

PROGRAM BUDGET

ITEMS AMOUNT
PROPOSAL PAPER PRINTING WITH PHP 1,210.00
RING BIND

DEFENSE PAPER PRINTING WITH PHP 876.00

RING BIND

TRANSPORTATION EXPENSES PHP 39,300.80

(INCLUDING AIRFARE)

117
PRINTING AND PHOTOCOPY OF PHP 482.50
LETTER AND QUESTIONNAIRES

MISCELLANEOUS EXPENSES PHP 25,340.00

TOTAL PHP 67. 209.30

CURRICULUM VITAE

Personal Information

Name: Mikee Beneve Chiong Sala

Date of Birth: August 6, 1991

Address: 96 Quezon St. Ipil, Zamboanga Sibugay

118
Educational Background

Elementary: Marian Grade School

Ipil, Zamboanga Sibugay

School Year: 1996 – 2003

High School: Hua Siong College of Iloilo

Former name: Iloilo Central Commercial High School

Iloilo City

School Year: 2003 – 2007

College: Velez College

Cebu City

Course: Bachelor of Science in Medical Technology

School Year: 2007 – 2011

Relevant Work Experience

Hi-Precision Diagnostics, J. Llorente St. Cebu City

Position: Medical Technologist / Phlebotomist

Year November 2011 – May 2012

KeeVan Enterprises, Ipil, Zamboanga Sibugay

Position: Assistant Manager / Cashier

119
Year: April 2013 – March 2014

Security Bank Corporation

Position: Teller

Year: August 2014 – November 2016

KeeVan Enterprises

Ipil, Zamboanga Sibugay

Position: Assistant Manager / Cashier

Year: January 2017 – Present

120