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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 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.
2 | P a g e
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.
10 | P a g e
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.
14 | P a g e
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
15 | P a g e
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.
16 | P a g e
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.
17 | P a g e
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.
18 | P a g e
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
19 | P a g e
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.
20 | P a g e
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
21 | P a g e
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
22 | P a g e
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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