COMPARATIVE ANALYSIS OF BUSINESS

SUCCESS AND THE PREVAILING

LEADERSHIP STYLES OF NORTHEAST LUZON
ADVENTIST COLLEGE
 CHAPTER 1: THE PROBLEM
AND ITS BACKGROUND
“No ship can sail without a captain, and the same is true
with Business”
Leadership is a dynamic and complex topic that
inspires and motivates higher education administrators,
as well as stimulate great interest. Leadership helps to
shape visions and strategic plans. Leadership is a social
influence process in which the leader seeks the
voluntary participation of subordinates to reach
organization goals. A leader can be defined as a person
who delegates or influence others to act and to carry out
specified objectives (Mullins, 2004)
 Poor leadership can affect people lifestyle.
One effect of poor leadership on people is that
they become lack of direction and lack of
purpose. If people understand that the
organization is under pressure because of poor
leadership, the confidence of that people will
lower. When some people confidence lowers,
other people confidence is clear to pursue.
People sense when their leadership is making
poor decisions, making It difficult for people to
carry on a helpful attitude (Haroon, 2013).
 STATEMENT OF THE PROBLEM
This study aims to describe the significant relationship
of leadership styles to business success of Northeast
Luzon Adventist College and to answer the following
research questions:
1. What are the different leadership styles of the leaders?
2. What is the extent of practicing the leadership styles?
3. What is the level of business success?
4. Is there a significant relationship between leadership
styles and business success?
RESEARCH HYPOTHESIS
There is no significant
relationship between leadership
styles and business success in terms
of flexibility and productivity.
SCOPE AND LIMITATIONS
The concentration of this study is the
impact of Leadership styles to Business
success of Northeast Luzon Adventist
College. This study is limited only to the
faculty and staffs of Northeast Luzon
Adventist College. Any information beyond
the scope is not part of the study.
 CHAPTER 2: REVIEW OF
RELATED LITERATURE AND
STUDIES
This chapter presents related literature and studies
that will serve as evidences regarding the topic
entitled The Impact of Leadership Style to Business
Successof Northeast Luzon Adventist College.
Moreover, this also provides further explanations from
reliable sources and past studies. Definition of terms
used in this study were provided in this chapter.
 The most appropriate leadership is style
depends on the function of the leader, the
followers and the situation. STRIVE (2017) states
that the following are the 12 different types of
leadership styles.
However, this study will only focus on the
four major types of educational leadership
which apply well in educational setting: (1)
Servant Leadership, (2) Transactional
leadership, (3) Emotional leadership, and (4)
Transformational leadership (Lynch, 2016).
 SERVANT LEADERSHIP
Racelis (2017) states that servant leaders go beyond
their own self-interest and focus on opportunities to help
followers go and develop. They do not use power to
achieve ends; they emphasize persuasion. Characteristic
behaviors include listening, empathizing, persuading,
accepting stewardship, and actively developing followers’
potential. Servant leadership increases team potency,
which in turn leads to higher level of performance
(Robbins and Judge, 2013). In addition, a servant leader
put complete trust in the process and in his or her
followers, if those within the organization will align with
its goal (Lynch, 2016).
TRANSACTIONAL LEADERSHIP
In the 1970s and 1980s the transactional model of leadership
was dominant (Chartered Management Institutes, 2013).
Transactional leadership is focused on staff’s basic and external
demand, the relationship between leaders and subordinates is based
on the contract. They tend to attain organizational goal by pacific job
roles and mission design, their basic purpose is to maintain a stable
organization (Swamy, 2014). Also, to some organization, this style of
leadership is viewed negatively. According to Men & Stacks (2013),
transactional leadership has a significant negative direct effect on
employees' perception of organizational reputation. Employees who
feel more empowered in terms of perceived competence and
decision-making control have a more favorable evaluation of
organizational reputation.
 EMOTIONAL LEADERSHIP
The ability to understand and manage one’s own
emotions, and to recognize and influence others’
emotions, is a critical leadership skill. While
transactional leadership was concerned primarily
with the exchange of goods and services, emotional
leadership is concerned with the feelings and
motivations of followers. It takes the focus completely
to the other side of the spectrum – demanding that
leaders be emotionally intelligent themselves and then
to motivate using that emotional intelligence (Lynch,
2016). According to Archangel (2017)
 TRANSFORMATIONAL LEADERSHIP
Chartered Management Institutes (2013) states that
‘transformational leadership’ was first used by James V Downton in
1973 and was popularized by James MacGregor Burns in his 1978
book Leadership. Transformational leadership style concentrates on
the development of followers as well as their needs. Managers with
transformational leadership style concentrate on the growth and
development of value system of employees, their inspirational level
and moralities with the preamble of their abilities (Ismael, 2009).
According to Bass (1997), the aim of transformational leadership
would be to “transform” people and organizations inside a literal
sense - to alter them in the mind and heart enlarge vision, insight and
understanding clarify reasons make behavior congruent with values,
concepts and brings about changes which are permanent, self-
perpetuating and momentum building.
 The manager and/or leader have a key role in
the success of a business. Important
characteristics of these key personnel, which
impact significantly on the success of businesses
include interpersonal skills and self-efficacy
(Markman & Baron, 2003). For most executives,
business success is defined as profit or revenue
levels, brand equity, or percent of market share
(Mosley, 2011). This study uses enrolment trend,
accreditation and certification, liquidity, and
working capital as the indicators of business
success.
 ENROLLMENT TREND
In recent years, the higher education landscape has become
increasingly competitive, as universities and colleges strive to recruit
and retain high-quality students. According to a 2015 Inside Higher Ed
and Gallup survey of admissions directors, 58 percent indicated that
they had not filled their fall classes by the traditional May 1 deadline.
Moreover, more than one-half of the administrators reported that they
were “very concerned” about meeting the year’s enrollment goals,
while almost another third stated that they were “moderately
concerned (Jaschik & Lederman, 2015). Enrollment in private
schools in general has declined, some continue to be exceptionally
effective at achieving their self-identified missions. A shift on
enrollment trends, increasing enrollment became the subject of
reports. The fluctuation in enrollment trends in the private educational
environments can be at least partially attributed to societal changes
(Bryson 2005).
 LIQUIDITY
Liquidity practices does not need to be
changed much by companies when in
financial turbulence. Based on our findings we
recommend companies maintain their focus on
liquidity and WCM. When in an economic
downturn more frequent monitoring and
forecasting on their liquidity levels and making
more short-term investments can provide them
with gains in profitability. (Lamberg & Vålming,
2009).
 WORKING CAPITAL
Working capital management is also very
important for the firm’s success; hence companies
are trying to maintain optimal levels of working
capital. Companies are adopting methods for
managing proper level in various components of
working capital (Nazir and Afza, 2008). According to
Pike and Neale (2002), companies with improper
condition of liquidity cannot pay their bills on the
maturity date, in contrast companies with proper
situation of liquidity have adequate cash for the
payment of their bills on the maturity date.
 CHAPTER 3: RESEARCH
METHODOLOGY
This chapter presents how the research will be conducted
and the reliability of the research questionnaire that will serve as the
blue print and guide of the study. This will discuss the research design,
population and sampling techniques, instrumentation, ethical
considerations, data gathering procedures, and statistical treatment.
Research Methodology refers to the overall approach to be
used to collect and analyze data (De Klerk, 2010).
This study is grounded within quantitative research and
approach and as it involves the identifications of the characteristics
of an observed phenomenon and the exploration of possible
relationship between the phenomena being studied (De Klerk, 2010)
•Research Design
The descriptive type was utilized as it is
suitable for this study. Descriptive study is a tool
in which information is collected without
changing the environment. It is more on data
gathering. It also tends to present and describe
the leadership styles of the leaders of NELA
College and its Enrollment trend, liquidity, and
working capital within 5 consecutive years.
•Population
This study is intended to use all the
faculty and staff of Northeast Luzon
Adventist from the elementary the College
Department down to Elementary
Department, who are currently working
during this school year 2017-2018 as
respondents who will be labeled in terms of
leadership styles, gender, age, and level of
business success.
•Instrumentation
The principal data gathering instrument used in this
study was be survey questionnaires that the researchers
constructed based from other questionnaires of the same
study and were validated by 3 research experts. This was
used to gather data to be presented in chapter four. The
survey questionnaire was composed of two sections. The first
section was composed of the demographic profile of the
respondent, and the second section was divided into four
parts consisting 10 questions each with a total of 40
questions that were considered enough for the study. Lastly,
the researchers issued letters to the school’s registrar to get
the data of the school about enrollment trend, and to the
school’s treasurer to get the data about the school’s liquidity
report and working capital report.
 SCORING SYSTEM
Scoring Verbal Interpretation of:
Constant means Overall mean

1.00-1.75 Strongly Never practice

Disagree
1.76-2.50 Disagree Sometimes
practice
2.51-3.25 Agree Often practice
3.26-4.00 Strongly Agree Always
practice
 ETHICAL CONSIDERATIONS
To compare research with appropriate research guidelines
research ethics is very important considering ethical aspect
research. Enough time will be given to the respondents to
predict the true view of the research questions. Primary and
secondary data will also be ensured for usage of respondent’s
given data. Confidentiality of the respondents will be
maintained strictly to ensure of respondent’s data. The
disclosure of respondent’s identity will be based on their
permission where if respondents are not willing to disclose
identity, respondent’s identity will not be exhibited. Beyond the
fact, usage of any secondary data from any source will be
acknowledge with appropriate reference. Hence, the ethical
aspect of research will be followed strictly in this study.
 DATA GATHERING PROCEDURE
The researchers will be gathering the data of the
study by conducting a survey to the respondents. The
researchers will be going to the different Adventist
Academies of Regions I, II, and CAR together with the
researchers’ research instructor to ask permission and
will ask the respondents to spare them a part of their
time. The respondents will be given enough and
reasonable time to answer the survey questionnaires
and whatever data that will be collected from the
respondents, it will be utilized only for educational
purposes.
 STATISTICAL TREATMENT
The Statistical Package for Social Science (SPSS)
for windows was used to analyze the data that were
collected from the survey questionnaires to determine
the impact of leadership styles to business success
among Adventist Academies. To compare the
relationship of leadership styles and business success
among Adventist Academies of Regions I, II, and
CAR, Pearson Product Correlation will be utilized as
well as the Means and the Variance to determine the
reliability of the research questionnaire.