ORGANIZATIONAL COMMITMENT AND MANAGEMENT STYLES OF BUSINESS EXECUTIVES IN MICROFINANCE ESTABLISHMENTS IN THE 4TH DISTRICT OF QUEZON

Microfinance institutions play a fundamental role in providing financial services to the rural households of the Philippines by encouraging entrepreneurial activities of small and medium enterprises. It is said to be an effective tool for poverty reduction (Habaradas & Umali, 2013). On the other hand, organizational commitment is the degree of individual loyalty and desire to stay in the organization and management style refers to the approach used by business executives in making decisions associated with business management. This article examined the relationship between organizational commitment and management styles of business executives. Particular attention was given to facets of organizational commitment theorized by Meyer and Allen and the management styles on different functions of management by Henri Fayol. This study was conducted with the objective to investigate the relationship of organizational commitment and management styles to organizational performance in the microfinance institutions in Atimonan, Gumaca, Lopez, Calauag, Guinayangan, and Tagkawayan, in the 4th district of Quezon. In order to achieve the purpose of the study, a descriptive design using a quantitative approach was used for the study. Regression analysis was used to further test the significant relationship of organizational commitment and management styles of business executives to the organizational performance. The study concluded that at 0.01 level of significance, there is a significant relationship between organizational commitment and organizational performance and there is no significant relationship between management styles and organizational performance.