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 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 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.

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.

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.

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.

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.

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

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

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

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.

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.

Customer will have a repeat purchase

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 terms of customer relations and it takes a long period to have a trust

to the customer

Maintaining the standard of their services-

Costly- maintaining CRM database require to hire a professional person ,keep the

software running and upgrading

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 passionate 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 Time Frame

Conceptualization of Company Policies

and Employee Benefits

Manager One to two weeks

Determining of benefits Manager One week

Determining person/people involved Manager One week

Program implementation Manager and all

employee

Continuous

implementation

Giving of benefits and rewards Manager Continuous

implementation

Implementation of punishment for non-

compliance

Manager Continuous

implementation

Review the program Manager From the beginning of the

implementation until

proven to be effective.

Evaluation of the effectively of the

program

Manager 2 months

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POTENTIAL PROBLEM

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.

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

http://www.facebook.com/pages/Cut-Salon-by-Encarnacion-Group-

Mandaluyong-City-Branch/108511279234060?ref=ts

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APPENDICES

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