CHAPTER 1

INTRODUCTION AND ITS BACKGROUND

Introduction

The Philippines registered the highest societal perception of entrepreneurship in

terms of entrepreneurship as a good career choice and media attention on

entrepreneurship among countries in Southeast Asia (Madarang and Habito, 2007 ).

Entrepreneurship reflects complex interactions between the individual and the situation

which has to be dynamic because business situation is always changing, thus,

entrepreneurial commitment and support are key elements in the process. One critical

factor for a strong entrepreneurial leadership is to gain employees commitment leading

to a more effective work performance (Gupta et al, 2004).

Entrepreneurial success is a function of achievement motivation and related self-

efficacy, positive attitudes and commitment (Baron, 2003). Commitment is the most

common word people hear which appears to be a pre-requisite to realize behaviors and

treasured outputs in our day by day activities, signifying that its miles one of the

maximum dominant psychological factors in shaping conduct and the way a character

acts (Tasnim, 2016).

In the entrepreneurial process, it is commitment and support plays an important

role of boosting up ones performance and productivity. Productivity is never an incident.

It is always the result of commitment to excellence, intelligent planning, and focused

effort (Meyer, ). Employees productivity is one of the crucial elements of a business

enterprise. (Esposito, 2015), it is, but, a means to assess, evaluate, and calculate the

efficiency of an individual or of a group in an organization. In its broader sense, it is a

driving force that is the mesh of individual performance, team work, and commitment to

a shared vision of where a business is / will be heading. Productivity is not about wages,

not because employees are paid too much but because they produce too little, focusing

on the overall capabilities rather on one set of costs (Bruce Chew, 2001).

Furthermore, although commitment plays an important role in the

entrepreneurship process, thus, also faces challenges to facilitate the changing

dynamics of the business as it evolves particularly on the assessment and evaluation of

the overall performance effectiveness and efficiency, of the business through its

stakeholders like employees.

In the light of this, this research paper is to contribute and add to existing

research analyzing the impact of entrepreneurial commitment and support to employees

productivity. The researchers come up with the study to further understand and provide

entrepreneurs a deeper insight on the impact and sustainable approaches fostering a

positive effect of entrepreneurial commitment and support to increase the productivity of

the employees.

Background of the study

Entrepreneurship is described as the pursuit of market opportunities to create

future innovative goods and services discovered, evaluated and exploited to extract

social and economic value from the environment, leading ultimately to new independent
business / venture creation (Shane &Venkataraman, 2000). The basic tasks of

entrepreneurs are to assess the possibilities, create new opportunities, and manage the

resource and to incorporate changes (Wang Tee and Ahmed, 2008). Therefore, an

entrepreneur should follow a discovery-driven approach which requires taking

uncertainty and analyzing problematic limits in order to frame the challenge and to

facilitate the opportunity seeking employees (Gupta et al, 2004). However, to find new

opportunities on has to challenge the status quo and take some risk (Bagheri & Pihie,

2010). Hence, in order for the entrepreneurs to find new opportunities one must go

beyond their comfort zones.

Further, the management of resources specifically management of human

resources is critical for the entrepreneurs, for they need to influence employees and

align them towards the common goal of the business to obtain their commitment.

(Strubler and Redekop, 2010). Obtaining support from others is necessary for managing

resources and critical for implementing changes; only then effective work performance

can be developed (Gupta, 2004).The entrepreneurs should be a visionary leader that

should create as appalling vision to support of participants and to inspire them to enact

the vision (Bagheri and Pihie, 2010). Thus, the entrepreneurs should encourage their

employees to work and manage resources together by creating a shared vision.

In the Philippines, Makati is now known for its upscale development and known

to the countrys premier Central Business and Financial District. Makati became the

haven for entrepreneurs to start up businesses and to scale business opportunities. The

highly competitive and fast changing environment of Makati for established businesses

is a challenge for entrepreneurs to sustain their business requiring a strong

entrepreneurial leadership. Furthermore, entrepreneurs commitment and support are

needed to stimulate employees in order to create a successful entrepreneurial

performance.

Theoretical Framework

This study is anchored upon theories Two-Factor Theory of Frederick Hertzberg

(1959) where it states that the productivity of the workforce is directly related to

Motivators and Hygiene Factors. Motivators are factors that lead to satisfaction and

motivate employees to work harder. These factors are also called the satisfiers as they

motivate the employees for a superior performance. The satisfiers may be in a form of

recognition where employees are praised for a work that was done successfully.

Another would be imparting a sense of achievement to the employees and providing

growth and promotional opportunities as they continue to contribute to the organization

by leading a larger group of people. The Hygiene Factors are the job factors which are

vital to fulfill before attaining the level of satisfaction that the Motivators provide. While

the Motivators lead to long-term employee satisfaction, the Hygiene factors do not lead

to positive satisfaction for long-term. However, if these factors are deficient, it will lead

to dissatisfaction of employees as it comprises the employees salary, company

policies, job security and physical working conditions. Hygiene factors are also

considered as maintenance factors as they are essential in avoiding employee

dissatisfaction.

In essence, Herzbergs Two-Factor Theory concerning the Motivators and

Hygiene factors both influence motivation although they appear to work independently
of each other. Motivator factors increase employee satisfaction and motivation but the

absence of these factors does not necessarily cause dissatisfaction. Likewise, the

presence of Hygiene Factors does not appear to increase satisfaction and motivation

but its absence causes an increase in dissatisfaction.

Theory X And Theory Y: Theories Of Employee Motivation (1960) was created

and developed by Douglas McGregor at the MIT Sloan School of Management. It

describes two very different attitudes towards workforce. In this theory, the description

of X is that management assumes that employees are inherently lazy and will avoid

work if they can. Because of this, workers need to be closely supervised and

comprehensive systems of control put in place. A hierarchical structure is needed, with

narrow span of control at each level, for effective employee management. According to

this theory employees will show little ambition without an enticing incentive program and

will avoid responsibility whenever they can. Managers that subscribe to Theory X tend

to take a rather pessimistic view of their employees. Theory X manager believes that it

is the managers job to structure the work and energize employees. The result of this

line of thought is that Theory X managers naturally adopt a controlling style based on

the threat of punishment. Critics believe that a Theory X manager could be an

impediment to employee morale & productivity.

In the description of Y, Management influenced by this theory assumes that

employees are ambitious, self-motivated and anxious to accept greater responsibility

and exercise self-control, self-direction, autonomy and empowerment. Management

believes that employees enjoy their work. They also believe that employees have the

desire to be creative at their work place and become forward looking. There is a chance
for greater productivity by giving employees the freedom to perform to the best of their

abilities, without being bogged down by rules. Theory Y manager believes that, given

the right conditions, most people will want to do well at work and that there is a pool of

unused creativity in the workforce. They believe that the satisfaction of doing a good job

is a strong motivation in itself. Theory Y manager will try to remove the barriers that

prevent workers from fully actualizing themselves.

Though these theories are very basic in nature, they provide a platform for future

generations of management theorists and practitioners to understand the changing

dynamics of human behavior.

 Conceptual Framework
The researchers conceived the conceptual framework of this study based on the
Input-Process-Output (IPO) system approach which is shown in Figure 1. This approach
is composed of interrelated elements that served as guide by the researcher in solving
the problem under investigation.
1. Employees Profile:
1.1 Age
1.2 Sex
1.3 Employment Status
1.4 Length of Service
Assessment of the
perceive impact of
entrepreneurial
commitment and support
to employees productivity
in terms of the different
aspects: sales productivity,
service productivity, time
management productivity
and profit.
Descriptive
To conduct survey in
selected business in
Makati through
Determined impact of
distribution of survey
entrepreneurial
questionnaire
commitment and
support to employees
productivity to improve
Statistical Tools are used
business performance.
to interpret the data
effectively: Percentage,
Weighted Mean and
Analysis of Variance.
Feedback
Statement of the Problem

This study will determine the perceived effects of entrepreneurial

commitment and support among the employees work productivity.

Specifically, this study delves to answers the following problems:

1. What is the profile of the employees (respondents) in terms of the following

variables:

1.1 Age

1.2 Sex

1.3 Employment Status

1.4 Length of Service

2. What are the perceived effects of entrepreneurial support and commitment on

work productivity among the respondents in terms of the different aspects: sales

productivity, service productivity, time management productivity and profit?

3. Are there any incentives given to the respondents for their increasing

productivity?

4. Is there a significant difference on the respondents assessment on the effects

of entrepreneurial commitment and support on work productivity in different

aspects when they are group according to their profile?

Statement of the Hypothesis

There is no significant difference on the assessment of the respondents

on the effects of entrepreneurial commitment and support on employees work

productivity in terms of the different aspects.

Scope and limitations

This paper will aim to determine the impact of entrepreneurial commitment

and support to employees productivity in selected business in Makati City which

is only limited to different aspects such as sales productivity, service productivity,

time management productivity and profit, to improve business performance.

Only the survey questionnaire will be used by the researchers to gather

data to target respondents which will be done approximately during the second

semester of Academic Year 2017-2018.

Significance of the Study

This study would be beneficial to the following:

Employers. This paper will help further in how Employers decide how they want

employees to see them. If employers are completely avoiding a personal

connection with their employees, they are making a big mistake. Some find it

difficult to personally connect with employees while maintaining the level of

authority. , this will help on how employees are handled, cared and provided for,
and conversely rewarded; which in turn all translates to and is reflected in the

employees work productivity.

Employees. This study will help Employees in how to feel valued and appreciated

by their leaders or their employers which infinitely more likely to go above and

beyond for the company and hold themselves accountable for their part of a

project. Most importantly, they will be happier in their roles. If leaders disregard

the importance of connecting with employees, they lose the benefit of a

dedicated, long term team.

Labour Department. This study will help further in how Labour Department will

provide assistance and protect the employees against possible labour law cases.

Future Researchers. The result of this study could be utilized by other

researchers as a reference in the conduct of similar studies in the future.

 Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter contains the related literatures and studies that support the

findings of this study. The literatures and studies came from various sources

such as unpublished and published thesis, articles and other materials from

websites.

According to De Clercq and Rius (2007) in their study entitled

Organizational Commitment in Mexican Small and Medium-Seized Firms, the

study found strong support that an overall entrepreneurial behavior within an

organization positively influences employees organizational commitment as for

those organizations employee involvement is critical and therefore tend to devote

high effort towards their employees. The individuals position and tenure in the

firm, their perception of psychological safety, and the firms entrepreneurial

orientation are positively related to entrepreneurial commitment. Looking at the

entrepreneurial attitudes innovativeness and proactivity, one can say that

there is no common consensus if encouraging employees to search for

opportunities and to develop new market entry contributes to the organization

commitment. Promoting innovativeness often means that employees have more

freedom to experiment which leads to a higher willingness of employees to invest

substantial energy in their organization (De Clercq & Rius, 2007).

According to Vecchio (2003) in an article entitled Reluctant

entrepreneurs: Why they do it and how they do it, those employees are more
likely to have interpersonal contact with the leader, which is often received by

employees positively as an affirmation . While an informal relationship involving,

empowering and giving autonomy to employees increases the organizational

commitment, centralization and formal work settings lead to lower commitment.

However centralization is unlikely to be incorporated at an entrepreneurial

leadership, considering that the focus lies on encouraging employees to work

autonomously and to take ownership. In short, entrepreneurial leadership effects

positively as employees get recognition and space for their own.

`According to Rocha et al in their study entitled The

entrepreneurial boss:effect on employees future entrepreneurship choices: a role

model story?, the entrepreneurs which can serve as a role model to employees

serves interrelated functions that provides learning, motivation and inspiration,

support and guidance, which may help employees defining self-concept and

increase their self-efficacy, making people confident that they too, can achieve a

certain goal.
 Chapter 3

RESEARCH METHODOLOGY

This chapter discusses the manner which the study will be conducted. The

factors presented here are the research employed, description of the

respondents, research instrumentation used and data gathering procedures

utilized by the researchers to facilitate the conduct of the study and the statistical

treatment of data.

Method of Research

According to Burns N. Grove (2005), quantitative research is used to

quantify the problem by way of generating numerical data or data that can be

transformed into useable statistics. It is used to quantify attitudes, opinions,

behaviors and other defined variables, and generalize results from a larger

sample population. Quantitative data collection methods include various forms of

surveys where measurable data will be formulated.

This study employed the descriptive method of research. A descriptive

method of research describes, present condition, events of systems based on

impressions or reactions of respondents. It obtains facts about existing condition

or determines the significant relationship of two current phenomena. It describes

and interprets prevailing conditions or relationship that exists, practices, beliefs,

processes that are going on, effects that are felt or trends that are developing. It

describes and interprets the nature of situation. (Cabrera and De Asis, 2008)

Since the presented study is concerned with the impact of entrepreneurial

commitment and support to employees productivity in selected business in

Makati City which is only limited to different aspects such as sales productivity,

service productivity, time management productivity and profit, the descriptive

method of research is the most appropriate to use.

The descriptive method of research is to gather information about the

present existing condition which aim to obtain accurate profile of the people,

events or situation. It is essential to the researchers to have a clearer view of the

phenomenon being investigated before the data collection procedure is carried

out. The researchers use this method to obtain first hand data from the

respondents so as to formulate rational and sound conclusions and

recommendations for the study. (Creswell, 2009)

Further, the process of the descriptive research goes beyond mere

gathering and tabulation of data, the process involves the elements or

interpretation of meaning or significance of what is described (De Jose, 1998).

Therefore, this is appropriate for the study since it can evaluate the different

impact of entrepreneurial commitment and support.

Population, Sample Size, and Sampling Technique.

 This study will be conducted in Makati City. The population of the study is

the employees of selected businesses in Makati City. The researchers utilized

the non-probability/convenience sampling technique in different business in

Makati City. The researchers will use a convenience sampling which is a non-

probability sampling technique where subjects are selected because of their

convenient accessibility and proximity to the researchers.

Data Gathering Procedure

The questionnaire will be used by the researchers in coordination with the

research adviser. The researchers will explain the purpose of the study to the

respondents and asked them to answer the questionnaire. The researchers will

give ample time to the respondents to answer the questionnaire and wait until

they are finished answering the questions.

In orders to achieve the pertinent information require in the study, the

owner or the representative of the owner of food business will be commissioned

to answer the prepared questionnaire. This qualification ensure that the

participants/respondents understand, making the survey items easy for them to

accomplish and can provide accurate responses.

Description of the Respondents

 The respondents of the study are the employees of selected business in

Makati City who voluntarily participated in a survey conducted by the

researchers.

Statistical Treatment of Data

To interpret the date effectively, the researchers employed the following

statistical treatment. The Percentage, Weighted Mean and T-test are the tools

use to interpret data.

1. Percentage

This will be employed to determine the frequency counts and percentage

distribution of personal related variables of the respondents.

2. Average Weighted Mean

This will be used to determine the assessment of the respondents with regards to

their personal profiles.

3. Analysis Of Variance (ANOVA)

This will be helpful in making comparison of two or more means which enabled

the researchers to draw various results and predictions about two or more sets of

data.