Thesis Abstract and Dissertation Abstracts
The Organization, Operational Practices And Problems Of Auto Repair Shops And Its Impact To The Development Of Kalinga-apayao
Abstract Category: Accounts and Economics
Course / Degree: Doctor of Philosophy
Institution / University: Saint Paul University, Philippines
Published in: 2012
1. Problem
This study entitled “The Organization, Operational Practices and Problems of Auto
Repair Shops and Its Impact to the Development of Kalinga-Apayao” aims to answer the following questions on:
1. Organization, Operational Practices and Problems
A. Organization
1. What are the characteristics of auto repair shops with respect to the following:
a. Form of Business Organization
b. Length of years in operation
2. What are the profile of the owners in terms of the following:
a. Sex
b. Age
c. Educational Attainment
3. What is the capital set-up of auto repair shops in terms of:
a. Sources of funds
b. Amount of Capitalization
4. What are the characteristics of the physical plant and facilities in terms of:
a. Land area of location
b. Tools
c. Equipment
5. What motivated the owners to enter into the business?
B. Operational Problems
1. How are the auto repair shops operated with respect to the following:
a. Service
b. Pricing
c. Procurement of direct materials, spare parts, and shop’s supplies.
d. Method of advertisement
e. Promotional Practices
f. Safety systems used
2. What are the personnel practices of the managers with respect to the following areas:
a. Recruitment
b. Selection
c. Compensation
d. Development
3. What is the average monthly income earned by the auto repair shops?
4. What is the average monthly expenses incurred?
C. Problems
1. What are the problems encountered by the different auto repair shops in Kalinga-Apayao and
how can these problems be minimized?
11. Impact to the Development of Kalinga-Apayao
1. What is the role of auto repairing as a service business to the development of Kalinga-
Apayao?
2. What factors brought about the establishments of these auto repair shops?
3. What are the contributions of the auto repair shops in the over-all economy of the province?
4. What are the implications of the service businesses like auto repair shops to the people of
Kalinga-Apayao?
5. What are the implications of the study on the over-all economy of the province?
Methods and Procedures of Analysis
The researcher used the questionnaire and the interview methods in gathering data. The respondents on the first set of questionnaires were the auto repair shops’ owners while the second set of questionnaires have selected individuals from the municipality of Tabuk as respondents on a random sampling. The mean and the percentage were the statistical tools used.
Summary of Findings
The essential findings of the study were as follows:
1. Majority of the auto repair shops were organized as a sole proprietorship, and they had been in
business operations for one to eight years.
2. As to the profile of the owners, all the owners were males and majority belong to the 31-59 age
bracket. As to their educational attainment, majority of the respondents finished high school or the
secondary level of education.
3. As to the capital-set up of the owners, according to the sources of funds, majority of the respondents
made use of their personal funds. For their initial capitalization, most of the owners started their
business with capital of P15,000 to P35,000. As to their present capitalization, majority of the
respondents had a capital ranging from P35,001 to P55,000.
4. As to physical plant and facilities, most of the owners had a land area of location ranging from below
500 to 500 square meters. The tools used by the shops were tire wrenches, torque wrenches, box
wrenches, pliers, hammers, screw drivers, bench vises and hacksaw and others like electric welding
and grinder, and adjustable. The equipment were electric welding equipment, car lifts, oxy-
acetylene
welding equipment, stationary boring machine, hydraulic jack, chain bloc, compressors, crocodile
jack, bench grinder and others like electric drill and lache machine.
5. As to the owner’s motivation to enter into the business, previous working experience is the
motivating factor.
6. The services rendered by the auto repair shops were overhauling, engine tune-up, down
transmission, welding, painting, change oil, replacement, wheel alignment, trouble shooting, body
repair, body conversion, body building and other jobs like vulcanizing and machine works like brake
drum. Overhauling was the most demanded type of service because of the rugged roads in Kainga-
Apayao which causes the breakdown of vehicles while engine tune-up and welding were the least
demanded type of service. As to the service that contributes the greatest percentage to income was
welding services because it entails little cost. Pricing was based on costs plus margin, procurement
on the other hand was from nearby auto supply stores. As to the method of advertisement, majority
of the owners do not advertise their business. The promotional practices of the owners include
giving discounts and credits. For the safety system used, majority of the owners train their
employees.
7. the number of workers employed in an auto repair shop ranged from below five to fifteen
employees. The owners relied upon the recommendations of friends and relatives in recruiting
their workers. Skill and experience was the basis of selecting their personnel. As to compensation,
the percentage rate method of compensation was the common method used, and the owners pay
their workers on a weekly basis. The personnel development of the workers was practiced through
observation and on-the-job training
8. The mean average weekly receipt was P14,880.45, the mean average monthly expenses was
P12,023.31. The average monthly income as computed was P2,857.14.
9. The problems encountered by auto repair shops in Kalinga-Apayao, mainly relates to financial,
operational and personnel problems.
10. The auto repair shops as a service business plays a very important role in the development of
Kalinga-Apayao because it stimulates production and investment, improve the people’s level of
living, creates income for both the people and the government and makes the world function
effectively. In short, the presence of auto repair shops in Kalinga-Apayao gave economic, social and
cultural changes.
11. The factors which brought about the establishment of auto repair shops in the province are (a) it is a
necessity for the development of the province, (b) its opening gave the owners as well as workers to
practice their profession and (c) it is a means of livelihood.
12. The contributions of auto repair shops as a service business is the over-all economy of the province
are: it generates income and improve the quality of life, it also brings social benefits through the
government, encourages the individual to exploit one’s professional competency, encourages the
development of other industries, utilizes resources for greater national productivity, contributes to
a more equitable distribution of income and therefore eases social unrest as well as lessens the
problems of unemployment.
13. The auto repair shops as a service business gave several implications to the people of kalinga-
Apayao like the opening of service business shows that there are other sources of income aside
from working in offices, going into business helps in the development of the province in terms of
productivity, employment and income generation and the application of technological
improvements like the invention of better machine facilities, production of goods thus increasing
profits which are in turn re-invested in business.
14. The implications of the study on the over-all economy of the province are: automotive service
business supports the government through the taxes paid, it does not only benefit the owners and
employees of the said business but brings social benefits to the public. Lastly, it gave emphasis on
automotive service business as a contributory factor in the development of the province.
Conclusions:
1. The auto repair shops in Kalinga-Apayao were predominantly organized as a sole proprietorship.
Aside from the problem of lack of capitalization, the problem of management arises because
management positions were vested on the sole proprietors even if they did not have the formal
training and educational qualifications.
2. The auto repair shops with higher capital had an advantage in business over those with lower capital
in terms of physical facilities, services offered, method of advertisement, promotional practices,
number of personnel and salaries of personnel.
3. The increase in the amount of capitalization was attributed to profit.
4. Personnel recruitment in auto repair shop was done through recommendation of friends and
relatives.
5. The auto repair shops are also faced with other problems: (a) unavailability of spare parts (b) High
cost of supplies, (c) improper pricing, (d) shop’s equipment were easily lost, (e) machineries were
easily damaged, (f) lack of skilled workers, (g) pirating of skilled workers, (h) employees leave the
shop after learning some skills, (i) high cost of electricity.
6. The presence of auto repair shops in Kalinga-Apayao is a necessity for the development of the
Province because it yields numerous economic, social and cultural benefits.
1. Economic Benefits
a. The opening of auto repair shops provides income for both the owners and government.
b. The presence of auto repair shops to maintain vehicles stimulates production and
investment.
c. It reduces the occurrence of poverty among the people of Kalinga-Apayao by creating
employment opportunities.
d. It facilitiates the distribution of goods from one place to another.
e. The employees of these auto repair shops will benefit from these businesses in terms of the
salaries they receive.
f. The presence of auto repair shops encourages the people to enter into entrepreneurial
courses.
2. Social Benefits
a. The presence of auto repair shops to maintain wehicles in good running conditions increases
the mobility of people which in turn allows a greater interchange of ideas.
b. It reduces isolation and makes educational and recreational facilities available.
c. Its presence will improve the quality of life of the people.
d. It gives the owners the opportunity to exploit their competencies.
3. Cultural Benefit
a. With auto repair shops to maintain vehicles in running good condition it facilitates the
spreading of ideas and culture from one place to another.
Recommendations:
The researcher presents the following recommendations in the light of the findings revealed and the conclusions formulated:
1. The auto repair shops must be organized into a partnership or a corporate form of business
organization. With the business organized as a partnership or corporation, more persons
have a bigger enterprise by pooling their capital together or by encouraging other people to
invest into their business.
Sufficient amount of capital would also enable the owners to stock small volumes of fast
moving spare parts to minimize the problem of unavailability of spare parts.
Furthermore, with the auto repair shops organized as a partnership or corporation,
management talents would emerge as each member of the enterprise can attend to the
duties for which he is best suited and the combined abilities of more persons would be
sufficient to promote the business and to solve business problems.
2. The high cost of supplies can be minimized by adopting a cost reduction program within the
organization. This includes training the workers in the proper use of supplies and in the
careful handling of equipment. The observance of the proper use of supplies and careful
handling of equipment would help in the cost reduction as this would minimize operating
costs in terms of repair and supplies expense.
On lack of skilled workers, the auto repair shop owners must consider other sources of
personnel like radio advertising and recruitment from employment agencies. Job rotation is
also recommended to provide every worker knowledge on the various phases of the job.
The practice of job rotation would not only improve employees skill but also provides the
shop with a more flexible workforce.
3. The problem of “easily lost shop equipment” can be solved by assigning a tool personnel in-
charge of all tools and equipment in the tool room. It is the responsibility of the tool
personnel assigned to have all the tools and equipment properly requisitioned. This is
facilitated by the use of a requisition slip signed by the workers.
Employees’ turnover can be minimized by giving rewards to long service and loyal
members in a form of salary increase and promotions.
4. The shop owners must be encouraged to form associations. With such associations, pirating
of skilled workers would be solved. Associations among shop owners or managers would
promote cooperation, teamwork and good relations among its members.
5. Based on the findings of the study, the researcher strongly recommends the maintenance of
these auto repair shops because they are one of the contributory factors in realizing
development in one’s country. With their presence several changes could happen, thus the
government as well as schools would encourage more students in the field of
entrepreneurship.
Implications of the Study:
The organization, Operational Practices and Problems of Auto Repair Shops and Its Impact to the Development of Kalinga-Apayao gave several implications as follows:
a. Capitalization is an important factor in the success of any business enterprise.
b. The presence of auto repair shops in Kalinga-Apayao yields numerous economic, social and
cultural benefits.
Dissertation Keywords/Search Tags:
Business
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Submission Details: Dissertation Abstract submitted by beatriz onate from Philippines on 13-Jan-2013 15:01.
Abstract has been viewed 5226 times (since 7 Mar 2010).
beatriz onate Contact Details: Email: onate.beatriz@yahoo.com
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