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Chapter 1

PROBLEM AND ITS SETTING

Background of the study

In any hospitality organization there are a wide variety of employees'

behaviors that can occur within the workplace. Employees' behaviors are defined as

various sequences of actions carried out by employees within the organization. Some

of these behaviors may be positive and refer to the constructive actions of employees

on behalf of the organization, employees and customers, while further behaviors may

be negative and may destroy a productive work environment. This study emphasis on

the employee’s behavior wherein service quality is includes. We have conducted this

study for this topic for us to know the level of employee’s behavior and service

quality.

In Australia, Melbourne is very well known on creating service quality to

customer however, the occurrence of negative behaviors still generate stress; provoke

minor illnesses and even cause depression among employees. The threat is that these

negative behaviors are epidemic and spread to others like the flu, which is costly to

the organization's productivity and eventually takes its toll on employees' health and

performance. Negative employees' behavior has ruined many businesses and costs

employers millions of dollars every day. It also has the consequences of driving away

customers; damaging employees' morality and increasing their turnover rates.

Employees' behaviors are important in a service company as they connect the

organization with its customers and they are a critical factor in developing effective

working relationships with customers (Helen, 2010).

In the National, Philippines are very noted of being a hospitable to every

visitors and
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Visitors and people around them. There is a strong relationship between

employee satisfaction and customer satisfaction with the service quality is considered

in a comprehensive approach to manage service quality. Moreover, some of these

behaviors may be positive and refer to the constructive actions of employees on

behalf of the organization, employees and customers, but still there is the further

behaviors may be negative and may destroy a productive work environment (Edralin,

2011).

In the locality, more specifically in Tagum City, the proponents have not yet

encountered a study about employees behavior and service quality. The proponents

conducted this study in order to determine the level of employees behavior and

service quality among employees in UM Tagum College as well as to establish if

there is a relationship between the employees behavior and service quality. In recent

years there has been a decreased focus on the employees behavior of firm’s

orientation and firm performance. Prior studies have generally found a positive

relationship between employees behavior and service quality. However, there are also

studies where such a relationship has not been found. One reason might be that the

measure that has been used to assess the employees behavior has typically been a

combination of both firm’s profitability and growth measures.

Statement of the Problem

The main concern of the study was to determine the significant relationship

between employee’s behavior and service quality among employees of UM Tagum

College.

More specifically, this sought answers to the following questions:

1. What is the level of employee’s behavior among employees in UM Tagum

College in terms of:

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1.1 Psychological;

1.2 Job characteristic; and

1.3 Attributes of individuals?

2. What is the level of service quality among employees of UM Tagum

College in terms of:

2.1 Intangibility;

2.2 Responsiveness;

2.3 Assurance; and

2.4 Reliability?

3. Is there a significant relationship between employees’ behavior and service

quality among employees of UM Tagum College?

4. What domain of employees’ behavior that significantly influence service

quality among employees of UM Tagum College?

Hypothesis

The following hypotheses were tested at 0.05 level of significance:

1. There is no significant relationship on the level of evaluation on employee’s

behavior towards service quality among employees in UM Tagum College.

2. There is no domain of employee’s behavior that significantly influences

service quality among employees in UM Tagum College.

Theoretical and Conceptual Framework

The study is anchored on the theory of Liljander (2000) who stated that

employees behavior is significantly and positively related to the service quality in the

form of characteristic of jobs, attributes of individuals and psychological present of

employee’s. Employees who are satisfied are employees who are motivated to convey

his concern for others. Satisfied employees are employees who can be empowered. In
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other words, employees who are satisfied will have the resources and the

responsibility to understand and meet the customer's demands and needs. Employees

who are satisfied assessed as having emotional resources sufficient to show empathy,

understanding, respect, and attention to the customer (Paul, 2013).

This study is supported by Wiley and Sons, Ltd. (2010) who mentioned that

service quality has a significant relationship in employees’ behavior. On the level of

service quality it has 4 indicators namely; Intangibility, responsiveness, assurance and

reliability. Organizational resources and work engagement enhance service climate,

which, in turn, has positive spillover effect on employee performance and customer

loyalty. The work engagement of support staff in an academic institution enhances

their service quality orientation. In essence, the long-term outcomes of work

engagement include better quality products and services and more satisfied and loyal

customers.

Figure 1 shows the conceptual framework of the study with employee’s

behavior as the independent variable with the following indicators: Psychological

defined as pertaining to the mind or to mental phenomena as the subject matter and of,

affecting, or arising in the mind; related to the mental and emotional state of a person.

Job Characteristic defined as model applicable to a business identifies the job

characteristics of skill variety, autonomy, task significance, task identity and

feedback, and the outcomes of high job performance, high job satisfaction, high

intrinsic motivation, and low absenteeism or turnover. And Attributes of individuals

defined as An attribute is a quality or characteristic of a person, place or thing.

Personal attributes are character traits or personality traits (Sharma & Mani, 2013).

The dependent variable of this study is the service quality with the following

indicators: Intangibility defined as used in marketing to describe the inability to assess

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the value gained from engaging in an activity using any tangible evidence. It is often

used to describe services where there isn’t a tangible product that the customer can

purchase .Responsiveness defined as the willingness to help customers and provide

prompt service. Assurance defined as the knowledge and courtesy of employees and

their ability to convey trust and confidence. And Reliablity defined as the ability to

perform the promised service dependability and accurately (Jones, 2010).

Independent Variable Dependent Variable

Employee’s behavior Service quality

 psychological  intangibility

 job characteristic  responsiveness

 attributes of individual  assurance

 reliability
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Figure 1. Conceptual Framework of the study

Significance of the Study

The result of the study is beneficial to the following, Business owners, this

study will help the entrepreneurs to have additional learning’s on what should be the

employees behavior to have service quality to be offered to the customers, Customers,

this study will help the customers for them to be more aware of the employees

behavior that will satisfied them. Business Administration Students, this study will

help the business students to be more conscious of their knowledge on the approach of

identifying employees behavior to provide service quality. Future Researchers, this

will give benefits to the researchers as basis to guide their future research in giving

them relevant information to employees behavior to provide service quality.

Definition of terms

To have the better understanding of the study, the terms are defined

operationally.

Employee’s Behavior. It refers to the way in which employees respond to

specific circumstances or situations in the workplace. While many elements determine

an individual's behavior in the workplace, employees are shaped by their culture and

by the organization's culture (Bateman & Organ, 2017). Operationally, this refers on

personal and corporate culture affects the way employees communicate and interact

with one another and with management. Additionally, an employee's beliefs affect his

or her ethics and sense of ethical responsibility.

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Service Quality. It refers to an assessment of how well a delivered service

conforms to the client's expectations Rust & Oliver, 1994). Functionality, this is a

service business operators often assess the service quality provided to their customers

in order to improve their service, to quickly identify problems, and to better assess

client satisfaction.

Chapter 2

REVIEW OF RELATED LITERATURE

Presented in this proportion of the study were some literatures and findings of

studies which bear relevance to the present investigation. Revised articles were taken

from books, internet, and articles in published and unpublished journals that could

support the study conducted.

Employees Behavior

The term employee behaviour refers to the way in which employees respond

to specific circumstances or situations in the workplace. While many elements

determine an individual's behaviour in the workplace, employees are shaped by their

culture and by the organization's culture. Employees are service providers who make

a connection between the customers and establishment most important elements that

represent the establishment in the eye of customers. Customers encounter employees

whenever a hotel, go to a restaurant, or board a plane and even having an enrolling in

a university. Even a single employee can easily determine a customers’ impression of

the service establishment because customers tend to associate the service provide with

the service itself (Bienstock, 2010).

Spector stated that employee satisfaction is employee satisfaction on the job or

the extent to which state employees like his job. Employee satisfaction indicates
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feelings of employees towards the work. Employee satisfaction is also defined as an

overall evaluation of the work for the company. Employee satisfaction can be viewed

as a machine that brings a change in the internal environment in the employee's

performance and service quality required in the repair and improvement services to

customers. Employee satisfaction is an important thing but never fulfilled at any time

and is very difficult to calculate the employee satisfaction. Organizations prefer to

measure something that is easily measured because it is quantitative, such as financial

performance and productivity (Sharma & Mani, 2013)

Employee satisfaction in service organizations achieved in the internal

satisfaction. Employees who are satisfied are employees who are motivated to convey

his concern for others. Satisfied employees are employees who can be empowered. In

other words, employees who are satisfied will have the resources and the

responsibility to understand and meet the customer's demands and needs. Employees

who are satisfied assessed as having emotional resources sufficient to show empathy,

understanding, respect, and attention to the customer (Paul, 2013).

In the field of business, customer is the life of the company or any

establishment. Companies must keep their customers satisfied to generate and to

improve profitability and market share to survive in the competition. Companies need

to find customers need, what they want and what they value. In the past decades

scientist pin point that the quality of service has a significant influence on customer’s

satisfaction and loyalty. There are many suggested models for Service Quality

measurement but in this study, we focus on four particular models, which are most

common in marketing researches and are the basis of other models (Baharun, 2012).

Furthermore, reviewing these models shows that all of them have some

advantages and disadvantages and Service quality models have improved day by day.
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In this study, we found the Hierarchical model as the comprehensive model. This

model contains significant factors and works by researchers approving the validity

and reliability of this model in different categories. It is an applicable service quality

measurement for marketing managers (Bowen, 2012).

It is obvious that customers are important stakeholder in organization and their

their satisfaction is a priority to management. Customer satisfaction has been a subject

of great interest to organizations and researchers alike. In recent years, organizations

are obliged to render more services in addition to their offers. The quality of service

has become an aspect of customer satisfaction. It has been proven by some

researchers that service quality is related to customer satisfaction. The behavior of

those employees and customers perceptions regarding those employees affect the

quality of relationship formed between the customer and the establishment. The

customer’s satisfaction with the establishment is determined by his or her satisfaction

with the employees with whom he or she is contact (Crosby, 2010).

Successful serve providers are able to meet and, whenever possible, exceed

consumers' needs and wants in delivering services, due to certain specific

characteristics of services (e.g., intangibility, simultaneity, variability and

perishability), and to the human element, in particular the 'face-to-face' interaction

with the customer. In addition, confirmed the fact that employee personalization and

courtesy was a significant predictor of customer satisfaction (Cronin, 2010).

They, further, stated that service quality, customer satisfaction and loyalty are

influenced considerably by the beliefs and actions of employees, and that by

providing outstanding service, employees can enhance the image of the establishment

and the level of perceived and actual service quality. Furthermore in a similar point of

view examined the notion that, as a customer, everyone has experienced positive and
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negative emotions during service delivery. They found that low skilled contact staff

may not be able to cope with emotional situations when the entire image of the

service firm is at stake. Because emotions are intangible, difficult to control and

instantaneous they have both short- term and long-term effects of perceptions

(Dimitris, 2007).

The relationship between customer and employees and that social regard plays

an important role in service delivery, for example in a situation where a customer has

to wait. A number of studies have shown the importance of friendly behavior from the

staff in order to improve service delivery and create long term relationships.

Employees are service providers who make a connection between the customer and

the establishment and are the most important elements that represent the

establishment in the eye of the customers (Duboff, 2016).

Customers encounter employees whenever the enter a hotel, go to a restaurant,

or board a plane. Even a single employee can easily determine a customer’s

impression of the service establishment, because customers tend to associate the

service provider with the service itself. Bureau of Labor Statistics stated that there

were 52,100 employee’s in the U.S. in 2012; by 2022, the BLS projects an increase to

57,900, or an 11 percent change. Unlike barbers of past generations, today’s barbers

must be licensed to practice in the state in which they work as to ensure they are

skilled in everything from sanitary practices and safety precautions to hair and scalp

physiology (Hashemi & Bastani, 2010).

Furthermore, the objective of a barber is to ensure the client is satisfied with

the services performed, as the ultimate goal is to build a clientele of repeat customers,

as well as new customers through customer referrals. It is quite common for highly

skilled barbers to develop loyal clients who utilize their services for years on end.
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Because of this, many neighborhood barber shops are a place where gentlemen

socialize and enjoy each other’s company, which only helps to build a clientele of

satisfied and loyal customers (Gwinner, 2010).

Some of today’s best job, according to a 2012 Details article, offers clients

classic cuts and shaves – and a whole lot of nostalgia and perks to go along with them.

The employee’s in Chicago, for example, offers a trademark pompadour look, while

the Persons of Interest barber shop in Brooklyn boasts a cool sixties vibe, complete

with chrome and red leathers chairs and black wood paneling (Hashemi & Bastani,

2010).

In addition, the State Street Barbers in Boston, on the other hand, offers their

clients a shampoo, scalp massage, and beverage with every cut, while the Sloane

Square Barbers & Shoppe in Miami Beach has a complimentary bar. Although men

are the primary clients of barbers, many women who want shorter hairstyles or prefer

simple trims and styles choose the services of a barber, as well. In the field of

academic and organizational institutions, the researchers gave some definitions for e-

commerce and referred to the trade of services and goods while making money

through the Internet (Sandvick, 2010).

Stephen explained that business to customer means the exchange of services,

information and products from business to a consumer. This benefit of business to

customer can greatly reduce the cost and broaden the range of customers. As

explained that those companies who want to enter the market by the internet with

emerging economy business need to have constantly adapt to the application of

business to customer, although they meet numerous challenges (Stephen, 2012).

Several interpretations of employee’s behavior theory are traces the evaluation

of psychological thought from simple external reinforcement to current concept of

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reciprocal interaction of external circumstances with personal determinants. The

author said that the learning in observing and evaluating the actions of others

informed reinforcement where the behavior of the employee’s is aware of the desired

outcome, wherein the extent restraints the integrity is operative, and the developments

will analyses their memory and cognition in their behavior (Bandura, 2016).

In addition, in this theory the growing public concern is manipulating and

controlling the psychological methods, the possible misuse of improved means of

influence, and frequently articulated by popular writers and by the theorists

themselves, wherein refuted by the empirical facts of human behavior. This will make

the theory possible to test the said behavior of the employee’s that will serves as their

common basis for the different factors of evaluating their actions (Bandura, 2016).

The concerned with developing and testing an alternative to Maslow’s theory

in the behaviour of the employee’s will be the basis in measuring the strength of the

different personalities of the employee’s. The alternative behavior theory is based on

a three-fold conceptualization of human needs which categorized to the existence,

relatedness, and growth. It doesn’t assume that the lower-level satisfaction is a

prerequisite for the emergence of higher order needs towards employee’s

(Barkhuizen, Mogwere & Schutte, 2016).

Furthermore, it includes propositions relating the impact of higher-order

frustration to the strength of lower-order needs employees. The existence, relatedness

and growth of the theory are the basis for the organizational behavior where it can

determine the employee’s character in their respective jobs. It able to determine the

attitude of characteristic on an employee’s (Barkhuizen, Mogwere & Schutte, 2016).

According to some theory it investigates the relationships among service

provider and customer positive effect, and employee- and customer directed
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prosaically behaviors, and sales-oriented behavior. There are three types of behavior

commonly exhibited in the context of service delivery. In addition, employee and

customer perceptions of service quality are considered. The principle findings indicate

that employee positive affect is positively related to employee perceptions of altruistic

organizational citizenship behavior and customer-oriented behavior, and negatively

related sales-oriented behavior. Customer positive affect is positively related to

customer perceptions of customer-oriented behavior and service quality, and

negatively related to sale-oriented behavior (Robinson & Kelly, 2011).

Employees at different service establishment are likely to display different

behavior are emotional orientations towards the customer; for instance, a Nurse is

expected to display the behavior of care, attention and listening towards patient, who

might be regarded as a customers, while other behavior miht be expected formal a

hotel employee. Therefore, it is crucial to first determine what behavior is perceived

as significant in creating a strong positive or negative effect on hotel customer

(Steinberg & Figart, 2010).

On the other hand, some factors may be defined which direct employees to

specific behaviors in service encounters. Some significant pressures related to the

nature of the job and the structure of the demand. When customers visit a hotel

establishment for a vacation or holiday, those employees who work face to face with

them should allow them to relax by avoiding any discussion of work-related issues

(Guerrier & Adib, 2013).

Furthermore, employees must maintain the hotel’s image through their

emotional and aesthetic attitudes, clothing, and behaviors. Unless employees treat

customers are also likely to welcome natural interactions with employees who

respond and relate to them as individuals, despite the expectations of establishment,

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job or social environment. Conversely, in customer-employee relationship is

determined in a more bureaucratic style, and specific standard are expected from the

employees (Guerrier & Adib, 2013).

Many organization including those whose primary offering involve physical

goods such as automobiles or computers have instituted measurement and

management approaches to improve their services. The service-quality agenda has

now shifted and reconfigure to include other issues. The issue of highest priority

today involves understanding the impact of service quality on profit and other

financial customers of the organization (Keiningham, 2014).

Executive of many companies in the 1980s were willing to trust their intuitive

sense that better service prior to having documentation of the financial payoff. Some

of these companies, such as federal Express and Xerox, have been richly rewarded for

their efforts. But executive in other companies have been reluctant to invest in service

improvement without solid evidence of their financial soundness and in the current

era of downsizing and streaming. Interest in tools to ascertain and monitor the payoff

from service investments is high (Germano, 2016).

Conceptualize the effects of quality, satisfaction, and value on consumer’s

behavior intentions. Specifically, it reports an empirical assessment of a model of

service encounters that simultaneously considers the direct effects of these variables

on behavior intentions. This builds on recent advances in services marketing theory

and assesses the relationships between the identified constructs across multiple

service industries. Furthermore, several competing theories also considered compared

to this kind of model. A number of notable findings are reported including the

empirical verification that service quality, service value, and satisfaction may all be

directly related to behavioral intentions when all of these variables are considered
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collectively. For more results it suggested that the indirect effects of this service

quality and value construct enhance their impact on behavioral intentions (Cronin,

2012).

The theory of conceptual model to the impact of service quality particularly

the behavior that signal whether customer remains with or defect from a company.

Results from a multi-company empirical study examining relationships from the

model concerning customers behavioral intentions show strong evidence of their

being influenced by service quality. The findings also reveal differences in the nature

of quality-intention link across different dimensions of behavioral intentions

(Zeithaml, 2011).

Attitudes and behavior of employees who provide frontline service and

address the extent to which relationships is vary among male and female employees.

The overall model predicts effects of role stress and work or nonwork conflict on

customer-contact employee’s job performance, job and life satisfaction, and quitting

intent. The structural equations modeling suggest an important role for work and

nonwork conflict overall as well as two areas of interesting variation across gender.

Specifically, multisampling structural equations analyzes suggest that the role stress

effects female service providers’ job performance more negatively than it does

male’s, and that job satisfaction is related more highly to quitting intent among males

(Boles, 2014).

Organizations are consistently looking ways to reduce occupational stress to

improve the productivity of their employees. It is matter of great interest for them to

find out potential causes of occupational stress. Mobbing is relatively new concept for

behavior scientists, which illustrates in the form of unfriendly behavior of employee

at workplace (Zaman, 2013).

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In addition, theory found out different causes of mobbing and their

relationship with mobbing behavior, stress and employee behavior at workplace. The

research uses exploratory factor analysis to identify causes of mobbing and structural

equation modeling to test relationship between constructs. A convenient sample of

450 employees from Higher Education Institutions of Pakistan was taken from

empirical investigation. The empirical findings reveal that mobbing has a positive

relationship with stress and leads to negative employee behavior at workplace

(Acuver, 2013).

The purpose of training and development is pervasive. Training and

development builds a team of highly effective and efficient way. Employees who are

trained regularly are well motivated, well-mannered and have enhanced confidence

and self-esteem. Training and development prepare and enhance employees

knowledge and skills to enable them so that they adapt new technology, the changes

that are happened inside the organization and the working environment (Nataizu,

2016).

In addition, the training and development also creates an international journal

of computing and business research pool employees and chances for promotion or to

replace employees who have left the organization. the training and development

enhances job satisfaction and productivity for organizations because employees know

what is expected of them as they are also equipped with the knowledge and tools to

perform their jobs efficiently. Cross training in which on job and off-job trainings and

multitasking employees allows them a sense of importance in the organization and

feelings of security (Saleem, 2016).

Furthermore, the other purposes of training and development are for safety

considerations’, the handling of equipments, facility and materials from less risky to
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the very hazardous and the prevention of the cost of accidents and idle resources.

With the training and development errors are reduced and efficiency is increased

because employees are already well-equipped with the ways of the work (Acuver,

2016).

A good training and development system ensure your employees in every

organization understand that what business and company is in what condition and

keeps updated on the skills they need to process to perform their day to day job so it

brings in confidence and improves performance. Training therefore can be explained

as a planned and systematic effort by management aimed at altering behavior of

employees, in a direction the will achieved organization goals. A formal training

program is an effort by the employer to provide opportunities for the employee to

acquire job-related skills, attitudes and knowledge (Mc Ghee et al. 2011).

Service Quality

An assessment of how well a delivered service conforms to the client's

expectations. Service business operators often assess the service quality provided to

their customers in order to improve their service, to quickly identify problems, and to

better assess client satisfaction. The SERVQUAL instrument for measuring service

quality has been subjected to a number of criticisms. Authors have criticized that

SERVQUAL dimensions and they argued that the dimensions change with type of

service. They have argued that there is no real evidence to support the concept of

performance minus expectations gap as a basis from measuring service quality.

Despite the criticisms, contented that the SERVQUAL scale using the expectations or

performance gaps method is much richer approach to measuring national science

studies on employee engagement follows a general trend of exploring human capital

as means for organization as to meet their goals (Taylor, 2011).

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The study showed that the organizational resources and work engagement

enhance service climate, which, in turn, has positive spillover effect on employee

performance and customer loyalty. The work engagement of support staff in an

academic institution enhances their service quality orientation. In essence, the long-

term outcomes of work engagement include better quality products and services and

more satisfied and loyal customers. In addition, the work engagement of school

principals is a motivational catalyst for enhanced innovation and creativity of school

teachers. Moreover, they found that the work engagement of school leadership also

enhances the professionalism of school teacher. This will be making a big

enhancement towards the employee’s behavior through the good performance that

workers may apply to their selves (Tanjung, 2015).

Furthermore, they argued that it is essential for higher education management

to apply market-oriented principles and strategies that are used in profit making

institutions. This principles and strategies that are being applied to higher education

institutions with the aim of gaining a competitive advantage. This is possible of the

better outcomes for a responsible employee. Institutions are increasingly realizing the

importance of higher education as a service industry and are placing greater emphasis

on meeting the expectations and needs of students point out that it is crucial for higher

education providers to understand the student’s expectations and perceptions of what

constitutes a quality service in order to attract students and serve their needs. This will

promotes the need for higher education institutions to continue, to deliver a quality

service and satisfy its participating customers to achiever sustainability in a

competitive service environment (Gruber et al., 2010).

Higher education can be seen as a pure service, suggesting that it possesses all

the technique characteristics of a service. More recently, theory assert that higher
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education is a service that is predominantly tangible, perishable and heterogeneous.

This is due to the service experience varying from one situation to the next, making

higher education service encounters difficult to standardize. Higher education as a

service also satisfies the perishability criterion since it is difficult to store. However,

ways to overcome this are evident, for instance, the emergence of e-learning and

video technology over the past years (Brown, 2014).

The performance cues of tangible goods have been studied extensively; very

little research has examined performance cues within service environments.

Performance cues play an important role within the service encounter, because they

serve as sign of quality and value of customers. One particularly important cue is the

performance of customer-contact employees as they create and deliver service quality.

This study was designed to investigate employee performance cues within a hotel

service environment (Acuver, 2011).

In addition, it indicates that front desk, housekeeping, and parking employee’s

performance have a significant effect on perceived quality, whereas front desk and

room service employee performance have significant effect on perceived value. The

only performance cue having a direct effect on word-of-mouth intentions is the

performance of housekeeping employees. Both quality and value increase word-of-

mouth intentions (Mittal & Lassar, 2010).

This work analyzes the effect that service company employee behavior has on

customer perceptions of the quality of services received, and the consequent company

performance. Organizational citizenship behavior has been recognized as relevant

behavior of some employees, but this role regarding customer perceptions and

company profitability remains unexplored. With a brief review of the conceptual

background of organizational citizenship behavior, service quality and its

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consequences test the empirical relationships. Furthermore, the effect of value is large

relative to the effect of quality. The theory discussed with respect to the two

conditions that may affect the relative importance of each performance cue. First cue

is the frequency of employee-customer interaction. And the second cue is the

tangibility of each performance cue. The authors also discuss managerial implications

and directions for future studies (Jones, 2010).

This type of model is linking between employees’ behavior and short- and

long-term customer perception. This is confronted with different non routine service

encounters and manipulated routine service encounters. In non-routine service

encounters, two judges encoded behavior of service employees. With three types of

behavior it was possible to explain customer’s feeling warmth. Warmth also

correlated with measures such as likeability, perceived quality and service loyalty

(Zafar, 2012).

In addition, in the manipulated routine service encounters a hotel reception as

a setting, and service quality was manipulated in different ways. Warmth correlated

highly with post-experience measures, had a dual impact on customer loyalty and

increased intention to stay and willingness to pay more from the same service. Service

firm should train employees to deal with emotions and to learn empathetic behaviors

(Woo & Ennew 2014).

Perceived service quality and satisfaction have generally been conceptualized

to be distinct constructs, but there isn’t a good understanding of their relationship.

While the two construct are very similar, little research has empirically examined the

distinction. This discusses the conceptual arguments from the distinction, and

examines the empirical distinction by testing a recently proposed model of service

quality and satisfaction. This indicates that the two construct are in the present case,
 21

distinct, and there is some support for the model, with several modifications (Spreng,

2010).

Service loyalty, with its final effect on purchasing by customers, appears to

have received relatively little attention. This starts by first delineating the concept of

service loyalty and proceeds to distinguish between service quality and customer

satisfaction. A meditational model that links service quality to service loyalty via

customer satisfaction is proposed. In addition, in appropriate measures are identified

and a postal survey undertaken among 1,000 retail banking customers. A response

rate of 20.5 per cent is obtained. It indicates that the customer satisfaction does play a

mediating role in the effect of service quality on service loyalty. The effects of a

number of demographic indicators on service loyalty are also reported. Implications

are discussed, limitations of the study are noted and possible areas for further are

indicated (Caruana, 2015).

Service quality is linked to customer loyalty. Research has shown that the

service quality has strong influences on buying intentions of the customers. Some

other researchers also provided the strong empirical evidences supporting the fact that

service quality increases the customer intentions to remain with any company. The

service quality has effect on the customer loyalty. Customer loyalty is the long and

interrupted retention of the relationship by offering service that meets and even goes

beyond the customer needs (Zafar & Acuver, 2011).

Amongst the generosity organizations, surging range of competition is being

held and the only means of keeping or enhancing the market’s demand is through

providing quality services that would meet or surpass the customer’s satisfaction and

their expectation. It was found out that all the employees’ behavior, be it favorable or

unfavorable, highly correspond to the customers’ overall satisfaction. In spite of the

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significance of food service quality, the academics and the managers learn

comparably limited about how the combined effects of quality (food, service, physical

environment) evoke customer satisfaction in which turn influence behavioral

intention. It was found out that the quality of food, service, and the physical

environment were all important element of the customer satisfaction. Thus, the latter

is truly an important predictor of behavioral intention (Ryu, 2010).

A study examined about the influence of consumer’s service quality

perceptions on satisfaction, revisit intention and the role of gender in the context of

high profile golf club business. The result revealed that tangibles and empathy were

demanding service quality dimensions for deciding satisfaction of both the male and

female golfers. The latter likely to pay more attention to physical images or

representations, cleanliness, and display of service confrontations. Service quality as

recognized by the organization like reliability, responsiveness, assurance, etc.

Reliability includes consistency of performance and dependability. It indicates that

employees or the company provide the service right the first time. Furthermore, it

means that they glorify their promises in providing services especially in being

accurate in billing, rightfully keeping the record, and executing the service at right

time. Responsiveness deals with the desire and readiness of employees to provide

service (Dehghan, 2013).

It includes the timeliness of services which means that sending a transaction

slip instantly, calling the customer back quickly–mailing a transaction slip

immediately, calling the customer back quickly and providing service promptly.

Competence indicates the ownership of the needed skills and knowledge to provide

the services. It includes the knowledge and skill of the contact staff, knowledge and

skill of the operational support personnel, and research capability of the organization.
 23

It was observed that differences occurred between the company’s’ and customer’s

recognition of service quality performed. By examining such differences, it was

claimed that service quality can be evaluate through gauging the discrepancies

between what the customer demand and what he sensed to receive (Liao, 2012).

In all the areas of service quality that need to be undertake is the essence of

consumer’s assumptions with regards to the range of intangibility. What slows down

the research into, supplying, gauging and even keeping service quality is the very

essence and attributes of the service. In addition, service quality cannot be designed or

even evaluate by the traditional quality product method because it have specific

attributes, one of which is intangibility. Any service-provider sector should expound

and envision service in exactly the same way as consumers like giving quality as

consumers expect to be (Maric et. al., 2016).

With the intangibility of services, marketing them becomes specifically

demanding and exceptionally important duty. Because of the accelerating

homogeneity in the product contributions, the attendant services provided are

surfacing as a key differentiator in the mind of the consumers. Marketers can

influence the service offered to distinguish themselves from the growing competition

and to attract the costumers (Bonera & Kirmani, 2011).

In promoting a service, intangibility means the inability of the consumer to

pre-evaluate the value of using a service. Being different from a physical product, a

service cannot be seen, touched, tasted, felt prior to its acquisition. And that make it

not easy to assess its quality. Consumers will find for “clues” of quality service. Out

of any physical attributes in the service itself, they made conclusions from what they

can found related to the service. It will all left to the service provider to make
 24

intangible tangible. Thus, they need to provide evidence of the quality (Ronisky,

2016).

Reliability refers to ability of the company to accurately attain its services in

the right time and in accordance to the promises it made to the customers.

Responsiveness is the likeliness and readiness of service provider to help customers

and fill their satisfaction, quickly respond to their concerns regarding the service, and

also help solve their problems immediately. Competence is about having enough

skills and ability that make the employees execute their task properly. While

credibility can be attained through full trust and confidence in the provider of service

also his honesty and truthfulness. Satisfaction have become a trending issues in the

marketing during the 1980s and is a discussed topic during business expansions and

downturns. Most debates on customer satisfaction includes customer perceptions of

the service offering, actual offering of the customer experience and perceptions that

either exceed or not even met. If their perceptions were tained and exceeded, positive

disconfirmation result and if it’s the negative otherwise (Muhhammad et al., 2011).

Employees behavior refers to the way in which employees return to specific

circumstances or situations in the workplace. While many elements determine an

individual's behavior in the workplace, employees are shaped by their culture and by

the organization's culture while service quality refers to an assessment of how well a

delivered service conforms to the client's expectations.

The term employee behavior, refers to the way in which employees respond to

specific circumstances or situations in the workplace. While many elements determine

an individual's behavior in the workplace, employees are shaped by their culture and

by the organization's culture while service quality , in its contemporary

conceptualization, is a comparison of perceived expectations of a service with

 25

perceived performance. This conceptualization of service quality has its origins in the

expectancy-disconfirmation paradigm.

In summary employee behavior behavior which is the employee’s actions on a

situation has a great impact on how employees serve the quality of service.

Employees interact to different customers and accommodate their needs and wants are

the primary goals for an organization. Service quality signifies on how the employees

of an organization performed the service to customers.

 26

Chapter 3

METHOD

The chapter presents the method and procedures that were used in gathering

the data for this undertaking. This includes the research design, research subject, data

gathering procedures, research instrument as well as the statistical treatment of data

used by the researchers.

Research Design

This research made used of quantitative non-experimental research design

utilizing correlational technique. A descriptive method is one in which the

information is collected through gathering numerical data, ideas, information and

facts without changing the environment or a study designed to depict the participants

in an accurate way (Gay, Mills & Airasian, 2009). This method was used to

investigate the employee’s behavior as a predictor of service quality among

employees of UM Tagum College.

The present investigation is concerned with the present study on the level of

the employees behavior and service quality. This method is appropriate because the

objective of this was to determine the level on employees behavior and service quality

among employees in UM Tagum College.

Research Subject

The study was conducted at UM Tagum college. Moreover, the respondent of

the study was the actual service receiver of the college.

 27

This study utilized the random sampling to get the number of respondent for the

study. Shown in the table 1 is the distribution of respondents as categorized by

Regular employees which had 77 respondents, Probationary employees had 18

Table 1. Respondents of the Study

Respondents Population

Regular Employees 77

Probationary Employees 18

Contractual Employees 10

Total 105
 28

respondents and Contractual Employees had 10 respondents. All in all, there were 105

respondents.

Research Instrument

The researchers made use a survey questionnaire and collected study data

from the respondents. Researchers made questionnaire was used to convenience of

both researchers and the respondents of the study. The questionnaire was made

simple, brief, and concise sentence to provide easy understanding by the respondents.

To determine the employees behavior and service quality among employees of

UM Tagum College, the following parameter limits was used:

Scaling Level Interpretation

4.30-5.00 Very high It means that the employee’s behavior is manifested at

all times.

3.50-4.20 High It means that the employee’s behavior is manifested

most of the time.

2.70-3.40 Moderate It means that the employee’s behavior is sometimes

manifested.
1.90-2.60 Low It means that the employee’s behavior is seldom
manifested.

1.00-1.80 Very Low It means that the employee’s behavior is never

manifested.

Scaling Level Interpretation

4.30-5.00 Very high It means that the service quality is observed

excellently.
 29

3.50-4.20 High It means that the service quality is very satisfactory.

2.70-3.40 Moderate It means that the service quality is satisfactory.

1.90-2.60 Low It means that the service quality is poor.

1.00-1.80 Very Low It means that the service quality is very poor.

Data Gathering Procedure

The researchers did the following to gather the needed data for the study. First,

was the construction of the questionnaire to measure the employees’ behavior as a

predictor of service quality among employees of UM Tagum College in the lens of

service receiver. The draft of the said instrument was read and check by the adviser.

This was then submitted to panel of expert for validation and then was finalized after

incorporating all the corrections and suggestion of the panel.

The gathering instrument was distributed to the actual service receiver after

the permission to conduct the study was sought from the owner of the UM Tagum

College employees to distribute the questionnaire to the respondent of the study. The

researchers gave the questionnaire to the actual service receiver and gave them

instructions on how to answer the following questions. The fully filled-up instruments

were gathered by the researchers. The answered questionnaires were subjected to the

appropriate statistical tool: Result was analyzed and interpreted.

Statistical Treatment of Data

Statistical tool that were used in the treatment of data are as follows:

Mean. This was used to find out the level of employees’ behavior and the

level of service quality.

 30

Pearson r. This was used to determine the significant relationship between

employees behavior and service quality among employees of UM Tagum College.

Linear Regression Analysis. This was used as an approach to determine the

domain of employees behavior that significantly influence service quality.

Chapter 4

PRESENTATION AND ANALYSIS OF FINDINGS

This section of the study deals with the analysis of gathered data. Presentation

of findings is based on the statement of the problems raised earlier.

Level of Employee’s Behavior among Employees of UM

Tagum College

Table 2 shows the level of employee’s behaviour among employees of UM

Tagum College with an overall mean of 4.54 with standard deviation of 0.688 which

described as very high. This means that the employee’s behavior is manifested all the

time.

Among all the indicators, Attributes of individual got the highest mean of 4.57

with standard deviation of 0.819 which was described as very high, followed by job

characteristics with a mean of 4.55 with standard deviation of 0.775 which was

described as very high and lastly, Psychological got a mean of 4.51 with standard

deviation of 0.861 which was described as very high.

This implies that the employees in UM Tagum College has performed their

task with calmness and focus, perform their task to the scope of their job description,

participate different trainings and seminars that enhance their personal development,

the employees don’t let their emotion state affect in work and they welcome naturally

the interactions with customers despite the pressure in providing quality service.
 31

The result of the study confirms with the pronouncement of Lynch (2010) that

employees attitudes affects his/her work performance in the organization. Attitude

affects an employee's reactions to others, including colleagues, supervisors and

especially customers attitude affects his perception of his job in the organization.
 32

Level of Service Quality among Employees’ of UM Tagum College

Table 3 shows the level of service quality among employees’ of UM Tagum

College with an overall mean of 4.54 with standard deviation of 0.688 which

described as very high. This means that the service quality is observed excellently.

Among all the indicators; Responsiveness got the highest mean of 4.56 with

standard deviation of 0.874 which was described as very high, followed by assurance

and reliability with a mean of 4.51 with standard deviation of 0.861 and 0.741

respectively, which was described as very high, and lastly, intangibility got a mean of

4.50 with standard deviation 0.669 which was described as very high.

This implies that employees of UM Tagum College has apply market-oriented

strategies to gain advantage, immediately address every customer’s inquiries, provide

service with confidence regarding its accuracy and completeness and also constantly

adopt to the application of business to customer.

The result of the study confirms with the pronouncement of Dehghan (2013),

that responsiveness deals with the desire and readiness of employees to provide

service. It includes the timeliness of services which means providing the customer

complete and constant service quality.

Correlation between Employees’ Behaviors and Service Quality

among Employees of UM Tagum College

Table 4 shows the test on the significant relationship between employees’

behavior and service quality among employees of UM Tagum College with an r-value

of 0.918** and p-value of 0.001 at 0.05 level of significance which lead to the

decision to reject the hypothesis. This means that there is a significant relationship

between employees’ behavior and service quality among employees of UM Tagum

College. Hence, when employees’ behavior increases, service quality also increases.
 33

Table 3. Level of service quality among employees of UM Tagum College

Indicators Mean SD

Responsiveness 4.56 0.874

Assurance 4.51 0.861

Reliability 4.51 0.741

Intangibility 4.50 0.669

over all 4.54 0.688

 34

This further implies that employees’ behavior is highly related on the service

quality as evident in the results, the changes in employees’ behavior bring a change in

service quality. If the employees’ behavior is high then service quality is high and

vice versa. There is sufficient evidence to conclude that the employees’ behavior has a

significant relationship with service quality among employees’ of UM Tagum, Tagum

City.

The result of the study confirms with the pronouncement Liljander (2000) who

stated that employees’ behavior is significantly and positively related to the service

quality. The importance of contact employees' behaviors during service interactions in

business establishments is necessary it is indicated that a major focus in any business

establishments should be the personal linkage between the service provider and

customer. In his article, these three variables have been concerned in order to show

their effects on service quality. (1st) Psychological is thestate of employee’s must be

present for internally motivated work behavior to develop. (2nd) Characteristic of

jobs is that can create these psychological states. And (3rd) Attributes of individuals is

that determine how positively a person will respond to a complex and challenging job.

Regression Analysis on Employees’ Behavior and Service Quality

among Employees’ of Tagum College

Presented in table 5 is the regression analysis to determine the domains of

employees’ behaviour as predictor of service quality among employees of UM Tagum

College with an r2 of 0. 858 and f-value of 474.221 at 0.05 level of significance

which lead to the discussion to reject the hypothesis. Result shows that attributes of

individuals, job characteristics and psychological are domains of employees’

behaviour that significantly influenced service quality.

The result of the study confirms with the pronouncement of Mccarthy (2000)
 35

Table 4. Correlation between employees’ behavior and service quality among

employees’ of UM Tagum College
Variables r-value r-square p-value

Employees’ Behavior

Service Quality 0.918** 0.8427 0.001

*p<0.05
 36

that individual attitudes or attributes had a greater influence to the one’s behavior that

affects his performance, research conducted revealed that personal traits are very

evident in the business that employee customer satisfaction is highly visible in the

business sector. Furthermore, Bandura (2016) added that several interpretations of

employee’s behavior that psychological thought from simple external reinforcement

to current concept of reciprocal interaction of external circumstances with personal

determinants. The author said that the learning in observing and evaluating the actions

of others informed reinforcement where the behavior of the employees is aware of the

desired outcome, wherein the extent restraints the conscience is operative, and the

developments will analyze their memory and cognition in their behavior.

 37

Table 5.Regression analysis on employees’ behavior and service quality among

Employees’ of UM Tagum College

Variables B SE B Beta

Attributes of 0.148 0.031 0.154*

Individual

Job Characteristics 0.371 0.032 0.386*

Psychological 0.144 0.031 0.160*

R2 0.858

F 474.221
 38

Chapter 5

SUMMARY, CONCLUSION, RECOMMENDATION

In this chapter, the researchers summarized the result of the gathered data for

conclusion and offered recommendation.

The study conducted was all about the employees’ behavior and service

quality among employees’ of UM Tagum College of Tagum City, employing

researchers’ made questionnaire in gathering data. Random sampling was used to

gather the data.

Summary of Findings

The main purpose of the study was to determine the level of the employees’

behavior among employees of UM Tagum College. This is correlated with the service

quality being rendered by employees of UM Tagum College.

After the data were statistically treated, data revealed that the level of

employee’s behavior was very high. All the indicators got a very high description.

Among the indicators; Attributes of Individual obtained the highest mean, followed

by job characteristics and lastly psychological.

The data revealed that the level of service quality was very. Among the

indicators, Responsiveness obtained the highest mean, followed by assurance,

followed by reliability and lastly Intangibility.

There is a significant relationship between employees behavior and service

quality among employees’ of UM Tagum College, the result showed the decision to

reject the hypothesis which stated that there is no significant relationship on

employees behavior and service quality among employees’ of UM Tagum College.

 39

There was a domain that significantly influenced the service quality. It was

made the hypothesis was rejected on the independent variable of employees behavior

and service quality among employees of UM Tagum College.

Conclusion

Based on the foregoing findings, the following conclusions are drawn:

1. The level of employees behavior among employees of UM Tagum College

is very high.

2. The level of service quality among employees of UM Tagum College is

very high.

3. There is a significant relationship between employees behavior and service

quality among employees’ of UM Tagum College.

4. The domain of employees behavior that significantly influences service

quality are attributes of individual, job characteristics and psychological.

Recommendation

Based on the above mentioned findings and conclusions drawn, the following

recommendations are offered.

1. The level of the employees’ behavior among employees’ of UM Tagum

College is very high. It can be maintained in so many ways, by engaging themselves

in enhancing program wherein the main objective is to improved their self and

evaluate their capacity and behavior that really influence their performance in

rendering service. Since the study revealed that individual attributes had the greater

influence this should be maintain and also though psychological factor had least

influence among others this can be raised to very high. This can be done by giving so

much attention attending forums and seminars that talks about psychological so that

employees can fully understand increased his/her performance as well.

 40

2. The level of the service quality among employees of UM Tagum College is

very high. It can be maintained by enhancing the mind setting of the employees on

customer orientation by providing them more seminars and training that will help

them to be more advantageous, effective and efficient.

3. Since there is a significant relationship between employees behavior and

service quality among employees of UM Tagum College. Institution needs to focus on

factors related to intangibility, responsiveness, assurance and reliability of the

employees to nurture the employees behavior to customers by establishing

harmonious relationship with the customers through friendly-service engagement,

generate improvements day to day to render greater service, provide service with

confidence regarding its accuracy and completeness and develop an essential strategy

to meet customer demands of service.

 41

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