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INTRODUCTION

Cut Encarnacion Group of Salon envisioned of becoming a top-leading salon globally by producing competitive-oriented personnel that provides expert services to their clients. From their vision, Cut Encarnacion Group of Salon has been known in the country and grown as one of the top leading salon in the Philippines. Cut has established its name in the beauty salon industry. In line with their vision is their mission of meeting the satisfaction of its clients through high-quality services, affordable prices, and quality salon products, Cut is committed in promoting ways on how to improve their services by identifying different strategies that will help them in the expansion of their operation. This total quality management will determine a central problem that the company is facing today. In line with this, problems identified will give several alternatives course of action in order to address those problems.

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Background of the Firm

Cut Encarnacion Group of Salon envisioned of becoming a top-leading salon globally by producing competitive-oriented personnel that provides expert services to their clients. From their vision, Cut Encarnacion Group of Salon has been known in the country and grown as one of the top leading salon in the Philippines. Cut has established its name in the beauty salon industry. In line with their vision is their mission of meeting the satisfaction of its clients through highquality services, affordable prices, and quality salon products, Cut is committed in promoting ways on how to improve their services by identifying different strategies that will help them in the expansion of their operation. This total quality management paper will be help in determining the problems being faced by the company today and determine more strategies and techniques that can be useful in the their business operation.

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History of the Company

Jun L. Encarnacion Salon was found by Mr. Jun L. Encarnacion who was a famous hair stylist. He was the one who is handling the hair styles and make ups of some of our former beauty queens competing in the prestigious beauty pageant which is Ms. Universe. When he died, his two nephews took place in running the business. But as like other people, there are some things that misunderstood by one another. They got separated and both put up their own businesses. They both choose the salon industry and became close competitors. Mr. Warren Encarnacion, one of the nephews of Mr. Jun Encarnacion and a professor named his business as “Cut Encarnacion Group of Salon” while his cousin named his as “Cut Encarnacion Francisco Group of Salon”. Today, Cut Encarnacion Group of Salon is doing very well in the market. As a proof, Mr. Warren Encarnacion has already owned more than 22 branches all over the Philippines. Most of them were located in Manila. Their main office was located in Tutuban Mall Tondo, Metro Manila where there were more than 70 employees employed. The owner cleared that Cut Salon is not a corporation.

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Cut Encarnacion Group of Salon in San Jose City, Nueva Ecija was established last January 22, 2010. It is not a franchise business but one of the branches owned by Mr. Encarnacion. This branch has more than thirty employees. When we asked him why he ends up having a branch in San Jose City he said that, “It is when we notice that people nowadays are looking for a low-priced salon services particularly women who are eager to experience the rebonding treatment and I think it is the right time to compete in San Jose City where our big competitors already established their branches”, Mr. Warren Encarnacion said, the owner of Cut Encarnacion Group of Salon. He also mentioned that there are two branches to be established in Cabanatuan City and Baguio City.

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Vision and Mission

VISION CUT Encarnacion Group of Salon envision of becoming a top-leading salon globally. To produce competitive-oriented personnel that provides expert services to their clients. Everyone wants to be in the top. Companies are dreaming to expand globally and capture a wide market share. To do that, one must produce quality products or services along with a good price, and excellent management. The CUT Encarnacion Group of Salon envisions its company to become the top leading salon inside and outside the country. It is natural that if their vision is to be in the top, they must build a quality service image that helps them to achieve their vision.

MISSION CUT Encarnacion Group of Salon shall meet the satisfaction of its clients through high-quality services, affordable prices, and quality salon products. In connection with their vision, CUT Encarnacion Group of Salon’s mission is to offer a relatively low-priced services and products by not sacrificing the quality of its services and products.

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Philosophy The Cut Salon Philosophy is about styling hair that’s realistic and beautiful, a state of the art techniques and styling accompanied by a great team of stylist with the highest standard of customer service. By discovering your lifestyle, needs, and goals we create individual looks that take full advantage of your best features to give you the look and assist clients in returning to a state of positive well being. It is with this spirit that our highly trained staff enhances your experience. Cut salon is known for creative and unique hair design synonymous to beauty and fashion. And together, you and I are creating an environment based on mutual trust and respect. Here at Cut Salon is an environment where everyone is acknowledge, appreciated and recognized.

Goals and Objectives Goals Cut salon’s goal is to provide the society with quality service that targets all people in different walks of life. And become a model for the industry nationally. Our ultimate goal is to make a difference that will provide customers a salon experience they will never forget.

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Objectives The objectives of the company are the following:  To meet customer expectations by delivering outstanding service towards well being.  To create an ambiance that will build team spirit and trust for goal attainment.  To be the leader in the salon industry.  To provide incredible, exceptional and unbelievable client service that will enhance value added services.  To have new ideas to match with the changing market

Through strong commitment, strong marketing, and a solid financial plan, Cut Salon will service the community and be recognized as a business leader. We feel very confident that the goals can be reached.

Credo and Principles Cut salon is an established haircut shop that provides exceptional service to its customers. We strive, as a team, to create a fun, unique and comfortable environment for all of our guests. We guarantee a great experience by offering a complimentary, thorough consultation to assure our guest receive the look they desire. Above all, we do the best work using our creative skills to address with the guest’s needs.

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ORGANIZATIONAL STRUCTURE

Duties and Responsibilities Manager: 

The manager is responsible for the entire business which is composing of different departments. His task includes planning, directing, organizing and controlling the operations of the company. Thus, this involves managing daily operations, planning the use of materials and human resources and formulating policies and ensures that the each department is functioning efficiently and effectively to achieve the goals of the company.

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Supervisor 

The supervisor is in charge of the communication of policies and task to the subordinates. He must ensure that those tasks are properly implemented. He is in charge of the observation of his co-workers.

Haircutter 

The task of hair cutter is assuring that he provides the service customer requires and most of all their safety.

Pedicurist 

The pedicurist is in charge of making sure that requirements of customers to their feet nails are met. It is also he’s task to guarantee the safety of the customers.

Manicurist 

The manicurist makes the nails of the customer look unique and meeting their requirements. It is also include that his customer’s nail will not be murdered.

Beautician 

Beautician’s task is to ensure that his client look good. Through his creative hands the customer he should give the service customer wants helping the customer boost their confidence.

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PROBLEMS IDENTIFIED After conducting an interview with the management of the company finds out the central problem which will be address in this total quality management paper. The central problem being encountered by the management is high customer complaints in the company. In this regard, the specific problems are the following: 1. Poor customer relationship management 2. Low control of the top management to the lower level employee 3. Poor employee performance FACTS OF THE CASE 

High Employee Rotation Part of the companies policies is the continuous employee rotation in different branches, it is own of the reason why they can not established good customer relationship. Even the employees suffer in this kind of company policy because they didn’t able to enjoy and explore their ability and talent since they don’t have stable working environment. And it is also one of the reasons why their employees are not fully motivated.

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Dissatisfied Customer Even though Cut Salon already established a name in providing quality service, especially in their Hair Rebonding Treatment, still they have lots of customers’ complaints due to unsatisfied service, according to the customers some of the rebonding treatment was not successful and effective and even worst it cost damage to the hair of customers.

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Referral Basis of Hiring New Employees When hiring a new employee they just use referral basis or they just hire individual who are being referred by their present employees or other people they knew. They don’t have strict hiring policies in recruiting and hiring new employees; they are not following systematic job description and job specification, that’s why they don’t have an assurance that they choose the right people in the job, they can not test the ability of the applicant before they hire it.

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Lack of Materials and Equipment Employees doesn’t have their own cutting and treatment materials and equipment they just borrow from their co-workers when they need it, and it cost delay on the service they provide in their customers. Sometimes they customer still needs to wait from other customer to finished before starting their service.

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Lack of Accommodating Employees Some of the complaints of the customers were the employees/workers accommodation, according to them upon entering the shop they are not easily entertain by the employees and sometimes one employee will refer the customer to other employee just to avoid rendering service in that particular customer.

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No Strict Policy of the Management Some of the employees were going outside the company even if during office hours; regarding this, management has lack of control to their employees.

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Low Motivation on Employees Every employee must be rewarded for the good job done. Giving appreciation to them has a big effect on the performance of the employee.

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ALTERNATIVES COURSES OF ACTION 

Encourage Employee Motivation through Giving of Benefits. Employee and workers now-a days expect more than just their hourly wages or monthly salaries, they want additional consideration that will enrich their lives, and it’s called employee or fringe benefits, it could be monetary or security benefits that may help the employee lives. These benefits will encourage and motivate the employee to work more and perform better. Benefit must be offered to retain and attract good employees and it is consider as an effective function of compensation program.

Advantages  Builds better employee-employer relationship.  Employees will be empowered.  May attract more qualified employee to stay in the company.  Give reason to competitive employees to stay in the company. Disadvantages  Costly to the company perspective.  Employees may abuse their right in asking benefit too much.  Not directly affects employees/workers performance.  Managers can’t easily measure the effect and impact of the employees’ performance.

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Strict Implementation of the Rules, Regulations and Policies of the Management to Control its Employee Performance. Company can create competitive employee to its organization. There will be a continuous flow of transaction for the company through intensifying the rules, regulations and policies, employee can create a better performance, and the process for the company will become more efficient and effective. It helps the employee to participate more and give their effort in the company. Through intensifying the rules, the management can create a well disciplined employee which help and build a good image for the company

Advantages  Company can produce a well disciplined and competitive employee  There will be a good employee participation in the organization  There will be a continuous flow of transaction for the organization  Process for the company will become more efficient and effective  It can create a good image for the company Disadvantages 

Employee cannot easily adjust.

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Too much pressure of work for the employee might affect the nature of their work

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It takes a long range of time for monitoring the employee.

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It will need enough money for imposing the rules and regulations.

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Employee might resign for the job.

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Build Customer Relationship Management The company should build strong customer relationship management, they should create harmonious relationship environment with their customers. The company should also create customer value to generate repeat purchases and customer loyalty. Customer loyalty can generate more profits to the company because more customers are encouraged to patronize the products and services. Through customer relationship management, the company can build trust to its customers thus; it promotes long term relationship with the market.

Advantages 

The customer will patronize the company. When the company implements CRM, the customers will be satisfied and if the customers are satisfied they will patronize the services offered by the company.

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This will serve as a good image of the company. When they continue to satisfy the customers these will lead to a good image to the company.

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Customer will have a repeat purchase

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It will establish a customer loyalty

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Disadvantages 

It takes a long period of time to build trust from the customer- building trust is important in of customer relations and it takes a long period to have a trust to the customer

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Maintaining the standard of their services-

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Costly- maintaining CRM database require to hire a professional person ,keep the software running and upgrading

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Record loss in the system- the database composed all the information of the customers. Their services frequently buy, and other important data. Once it was lost then, data needed to develop strategies from the customer to records might fail.

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RECOMMENDATION

The alternative that the researchers will recommend to cut salon includes improving their processes and answering their problem regarding the complaints from their customer are the combination of first and second alternatives. They must give benefits as well as incentives to their employees in able to motivate them to perform better and to improve their performance and also these benefits may attract more competitive and qualified person for the job. The second alternative is to strengthen and implement well their rules, regulation and policies since the company has poor policy implementation this past years, the changes may help the company’s employee become more responsible and disciplined to satisfy the needs and inquiries of the customer. The company may undergo hardship during the beginning of the implementation of this alternative, but it will help the company in the long run. The first recommendation may not directly affect the company’s relations to their customers, but the effect of this alternative may help the employee be more ionate and elevate their skills to satisfy customers. The other alternative directly give action to the performance of employees through this the company may easily sets standard and for the betterment of the company in relation to their customer.

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CONCLUSION After the implementation of the two alternatives chosen, it is expected that the central problem will be address and will produce good outcomes to the company. The management will create employee’s intrinsic enthusiasm and drive to accomplish work and will be accompanied by the strict implementation of the company’s rules, regulation and policies of the company. The management can balance the working environment of the employees by using the two alternatives course of action. The services offered by the company will be improved because of the improved performance of the employees. To make the employees align their performance to the company objectives, the management must also motivate them. Upon attaining this situation, the management will then reward those employees who had achieved the specified performance.

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Detailed Action Plan Actions / Strategies

Personnel In-Charge

Conceptualization of Company Policies Manager

Time Frame One to two weeks

and Employee Benefits Determining of benefits

Manager

One week

Determining person/people involved

Manager

One week

Program implementation

Manager

Giving of benefits and rewards

and

all Continuous

employee

implementation

Manager

Continuous implementation

Implementation of punishment for non- Manager

Continuous

compliance

implementation

Review the program

Manager

From the beginning of the implementation

until

proven to be effective. Evaluation of the effectively of the Manager

2 months

program

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POTENTIAL PROBLEM

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High Employee Turnover Strict policies, rules and regulation could make the employee’s job harder or it makes the employees day to day activities very limited. A very strict company could lose their competitive employees ant there’s a big probability that their employees would not be motivated and not build loyalty to the company.

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Employees cannot Adjust Easily Sometimes employees are not aware or not really following the company policies. And when the company implements strict policies, rules and regulation then they maybe have a culture shock or might need to adjust especially when it affects their way of giving their services.

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CONTROL OF THE POTENTIAL PROBLEM 

High Employee Turnover

Control: Conduct open forum frequently, encourage them to speak and cite their problems regarding the policies. Then try to resolve those problems for them to feel that they are also important and given the chance to have a word. 

Employees cannot Adjust Easily

Control: Give the employees few days to adjust and set a date where everybody should follow and no more excuses. Evaluate your policies, rules and regulations and know if it is still attainable or it result to better output of the company. Provide training for the employees to make them easier to adopt. Strict Implementation of rules and regulations Employee might be pressured that affect their performance. They cannot concentrate to do a better outcome of work and this may lead to poor performance. In this case the whole organization might be affected too. Control The management must have a proper way of giving advice to the employee once they encounter certain problem in nature work. The management also must be

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approachable to their employee to make them feel comfortable to their managers and for them to cooperate more. Encourage employee motivation through giving benefits There might be an ineffective implementation from the management to its employee. It takes a long period of time to give them proper motivation Control Company must properly monitor their employee as well as giving the right incentives or benefits not exceeding base on their performance

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REFERENCES 

Mr. Marson Esguerra, CUT Salon San Jose City Branch Manager

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http://www.facebook.com/pages/Cut-Salon-by-Encarnacion-GroupMandaluyong-City-Branch/108511279234060?ref=ts

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APPENDICES

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