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Chapter 1

THE PROBLEM AND ITS BACKGROUND

This chapter includes background of the study, theoretical and conceptual

framework, statement of the problem, hypothesis, scope and limitation, significance of

the study, and definition of terms.

Background of the Study

Philippine education in the ancient times revolved around reading, writing,

arithmetic, and the use of weapons. Thus, education in that time was geared only to

support their basic needs. During the Spanish colonization, the European system of

formal education was introduced which eventually led to the rise of first-ever schools,

colleges, and universities in the Philippines. In the present time, education is still valued

by the Filipino people as it is regarded as a strong weapon that each individual must hold

on to.

In this study, the researches aim to focus on one of the key players of an

educational institution—the teachers, and to discuss the relationship between employee

benefits of public high school teachers and their work motivation. John Stacey Adams, a

workplace and behavioral psychologist, developed the Equity Model which shows that

what employees put into their job depends on what they get from it. This concept is

under the extrinsic motivation which refers to the materials in monetary nature such as

salaries and perks that an institution offers to motivate their employees. In simpler

terms, the Equity Model assumes equal work for equal pay.
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Public high school teachers were chosen as respondents because they receive

greater benefits according to the law mandated by the government through Republic Act

4670 which also known as The Magna Carta for Public School Teachers. This study is

focused mainly on public high school teachers within the area of Makati City, specifically

San Antonio National High School, San Isidro National High School, Makati High

School, and University of Makati.

Theoretical Framework

Figure 1.0 Adams’ Equity Mode

As stated in the initial section of this study, John Stacey Adams’ Equity Theory

shall be utilized as the primary foundation in determining the relationship between

employee benefits and Employees’ productivity. This theory implies that the institution’s

outputs serve as the basis of an employee’s work input. Output in this context is defined

as the things that employees get from their work such as pay, bonus, perks, benefits, etc.,

while input refers to the things exerted by the employee in doing his or her job like time

and effort.
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When the institution offers wide range of employee benefits, the workers will

automatically perceive it as a good indication of working as much as what the company

offers for them. The key idea is what the employees get from their job motivates them to

work equally as much. Simply, it acts as a process of equal give and take wherein the

employees give the amount of input equally on how much output they take from their job.

Conceptual Framework

Hours of Work and

Remuneration

Health Measures and

Injury Benefits

Leave and Retirement Employee Motivation

Benefits

Teacher’s Organization

Dependent Variables

Independent Variables

 Reward Policies
 Positions

Intervening Variables

Figure 2.0 Conceptual Framework

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The figure above explains the effects of having employee benefits to the work

motivation of the employees of a certain institution. According to Ajose, attaching

employee benefits may help maintain good and healthy relations within an organization.

Employee benefits may be recognized as a bonus reward as they are the non-wage

compensations an institution gives in addition to their salaries. Ajose also said that

Human Resource or the employees are the center of an organization which means that

they are needed to keep the organization or the institution working. It is the

management’s duty to think of methods to keep employees motivated and happy so that

they could improve their work performance.

These benefits could serve as a motivation for them to continue to progress in

terms of work ethic and work performance. Moreover, the benefits given to the

employees may serve them personally especially those who are underpaid as these

benefits give financial assistance to the employees in times of crisis.

Statement of the Problem

Specifically, this study seeks to answer the following questions:

1. What is the demographic profile of the respondents in terms of:

1.1 Age

1.2 Position

2. What are the benefits that the public high school teachers receive?

3. How do these benefits relate to their motivation?

4. Is there a significant relationship between employee benefits and employee

motivation?
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Hypothesis

H0: There is no significant relationship between employee benefits and employee

motivation

H1: There is a significant relationship between employee benefits and employee

motivation

Scope and Limitation

In this study, the research participants are geared towards the selected public high

school teachers on different educational institutions around Makati, specifically San

Antonio Nation High School, San Isidro National High School, Makati High School, and

University of Makati only. The research is solely focused on the determining the

relevance and relationship of employee benefits to employee motivation. This research

will not exceed to the other educational institutions not mentioned above, and only 30

teachers for each school were chosen as respondents according to their availability.

Significance of the Study

This study aims to discuss employee benefits and its significant relationship to

employee motivation, which can be highly beneficial to the following:

Students. With this study, students in the field of business will become knowledgeable

on how they should handle their organizational members and how to increase employee

motivation through proper distribution of benefits.

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Teachers. This study shall provide enough information for them to become aware on

what specific benefits public high schools offer, and its relationship with their motivation

as workers.

Government. With this study, the government will get more information on how they

can boost employee motivation of the teachers towards a more successful institution.

Future Researchers. The results of the study will serve as a credible data or reference

for future research which can also be used as a background or an overview for conducting

a new study.

Definition of Terms

The following terms are defined operationally based on how they are used in the context

of this study.

Educational Institution. An educational institution refers to schools, colleges, and/or

universities that provide formal education for the students.

Employee Benefits. This term refers to the monetary values that are given to the

employees for the purpose of encouraging them to become more productive and

competent in doing their job

Government. The authority that governs the entire nation.

Input. This term refers to the things that employees put into their job such as time, effort,

ability, loyalty, commitment, etc.

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Motivation. This term refers to the general willingness to do something

Output. This term refers to what the employees get from their job such as salaries,

bonus, perks, benefits, etc.

Teachers. Educators are responsible for incorporating knowledge to the students,

especially in an academic environment or school.

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Chapter 2

REVIEW OF RELATED LITERATURE

This chapter discusses different parts including the related local literature, foreign

literature, local study, and foreign study.

Local Literature

According to the 2015 Asia Pacific Employee Benefit Trends Survey, Philippine

institutiona spend more on employee benefits compared to the Association of Southeast

Asian Nations (ASEAN). For some organizations, the enhancement of key talent is the

main strategy to benefit both the institution and the employees. Benefit costs continue to

rise up, and it’s a struggle for some institutions to cope up with the price. Although, there

is a significant spends on the employee benefits, only sixteen percent say that employees

value the benefits that they are getting from their company. Towers Watson’s 2014

Global Benefit Attitudes Survey suggested that employees view benefits such as

retirement and health as an important reason to work for or stay with their current

employer. Employee benefits are highly valued by certain institutions for they see this as

a reason to be with their current organization as these benefits help them make their life

easier. Medical benefits, for example, are being significantly spend on in the Philippines

for the workers do not need to pay more if ever they get confined in a hospital.

Retirement benefits are a major contributor, as well.  It will set the employee’s mind to

just stay for they will still be receiving benefits such as money, even if they retire from

the said institution.

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Seventy percent of Filipino employees are satisfied with their work based on

Jobstreet.com Philippines’ Job Satisfaction Report in 2015. Majority of the said

respondents, which is fifty-five percent, answered they were “quite happy” with their

respective jobs. The report stated that the level of satisfaction decreases as the employees

climb up to a higher position. It was also revealed that the reasons why they're satisfied

with their jobs were because of the salaries they get, the company benefits, and incentives

that they are provided with. Compensation, especially gratuity and pension, have a

significant effect on every employee's satisfaction (Chinyio, Suresh, & Salisu2018). With

the presence of these benefits, the employees are more encouraged to be productive at

their jobs, and to be engaged in different tasks. There is a significant relationship between

job satisfaction and employee engagement wherein a decrease in job satisfaction such as

the company benefits would also mean a decrease in the engagement of employees

(Society for Human Resources Management, 2014.)

Local Studies

In Robert John Manalang (2016) study entitled Measure Productivity without

Sacrificing Quality or Morale, for ease of measurement and setting consistent

expectations, the productivity measurement of a certain person should be the same for all

people doing the same type of work. The metric should allow someone to compare any

agent to any other agent no matter what time of day he or she is working. This makes it

easier to roll the metric into a center-wide performance metric. The goal of all good

measurement systems is to have the metrics in one part of the organization relate to the
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metrics throughout the organization. Their job is to determine how to accommodate any

such inequity and still utilize the same measurement and standard for all.

In a study conducted by Vhona Nanette P. Angeles, Aimeren Krystelle M. Saludo,

Ludy Mae R. Virtus, and Win Maw Tun in 2015, entitled: “Job Satisfaction and

Performance Level of Employees of Ajinomoto Philippines Corporation Bank”, they

surveyed 15 employees working in Ajinomoto, wherein 10 of them were regular

employees and the remaining five were non-regulars. It was concluded by the researchers

that Ajinomoto Philippines Corporation Bank’s employees were fully satisfied with how

they were being handled by the management. The different factors that affect the

employees’ satisfaction are namely the following: Compensation and fringe benefits,

working condition, interpersonal relationship, motivation at work, and present job. It was

showed that the factor that had the most effect on job satisfaction of the employees was

the compensation and the fringe benefits, which had a 3.55 composite mean and a ‘very

satisfied’ as a verbal interpretation. The compensation in the said study, refers to the

different benefits that are provided by the company. These include sick leave, health care,

one sack of rice monthly, gift check, Social Security System (SSS), PAGIBIG Fund, 13 th

month pay, and bonuses. In the working condition case, the employees deliver a sense of

relief once they think that the institution is able to maintain a good working condition.

The job satisfaction of an employee depends on the different factors that an institution

can fulfill. As an organization, one should be able to know the flaws of the business and

how to improve them for the sake of the employees. Workers have become more

important to their employers than their employers are to them (Smith, 2011.)
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Foreign Studies

Ajose (n.d.), who conducted a research towards the employee benefits and its

effect on employees in First Back in Uyo, Nigeria, substantially claimed that there is a

significant relationship between the employees’ benefits and their productivity. He

conducted a questionnaire that contained both open and close-ended questions to have the

responses specific and direct to the point. The benefits the employees receive were

allowances, which were the highest among other benefits, performance bonuses, paid

education leaves, Christmas bonuses, and a car loan. They were given incentives on the

following frequencies: every two years (11 respondents), annually (7), monthly (4), and

semi-annually (3). According to the respondents, which were the bank employees, they

were benefited from these perquisites; however, most of them responded “average” (68

percent) regarding the effectivity of the benefits. The challenges that the employee

encounter on the benefit policies on their organization are the non-inclusion of other

employees in the firm’s benefits and the lack of uniformity of the benefits that the

employees receive. In contrary to these, 64 percent of the respondents answered “very

high” on the impact of the benefits and 36 percent responded high. About their

productivity, the benefits had a very high level of impact on their productivity. 36 percent

replied that they can do extra work for the company if they might receive incentives; 28

percent answered that they became more productive for the organization; 20 percent

responded that they boost their efficiency during work; 12 percent said incentives make

them work harder; and 4 percent replied that it makes them punctual when given benefits.

Although it boosts their productivity or it makes them work harder for the company,

when they were given higher pay elsewhere regardless of the type or workplace, 88
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percent of the respondents will leave their current company. This concludes that the

employees of First Bank were deeply attached to the benefits and wage amount they

receive from the organization.

In Helen Kamau (2013) study entitled, “Fringe Benefits Effects on Employee

Productivity in the Public Sector (A Case of State Department of Water, Nairobi County,

Kenya)”. Fringe benefits focus on maintaining the quality of life for employees and

providing a level of protection and financial security for workers and for their family

members some common examples are; retirement or pension plans, medical insurance,

education reimbursement and time off. Like base pay plans, the major objective for most

organizational fringe compensation programs is to attract, retain and motivate qualified,

competent employees. Numerous surveys and experiences of HR professionals reveal

that the tangible rewards that people receive for working come in the form of pay,

incentives and benefits and one key to retention is to have competitive compensation

practices. Employers on the other hand would be striving to cut costs so as to post

impressive profit at the end of the accounting period. It is clear that there is a research

gap in this area of study and that further research needs to be carried out, in order to find

out whether fringe benefits really do have any effect on the productivity of employees in

the public sector, Kenya. The main purpose of this research project is to find out fringe

benefits effects on employee productivity in the public sector, Nairobi County. This study

adopted descriptive survey design which is concerned with determining the frequency

with which something occurs or the relationship between variables.

In Ali Yassin Sheikh (2013) study entitled “Working Conditions and Employees’

Productivity in Manufacturing Companies in Subsaharan African Context: Case of

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Somalia”. The numbers of micro and small enterprises and people working in the

informal economy are growing rapidly around the world since 18th century, and account

for the bulk of new employment, and for the majority of the working poor. In

assessments of working and employment conditions, including issues of

occupational safety and health, maternity protection, work-family issues, homework,

working time, wages and income, work organization, sexual harassment, violence at

work, workload, worker’s welfare facilities, housing, nutrition and environment, the

millions of women and men in micro and small enterprises and the informal

economy (MSE/IE) face perhaps the greatest problems among the working population

(Rinehart, 2004). Conducive work environment ensures the wellbeing of employees

which always was enable them exert themselves to their roles with all force that may

translate to higher productivity (Akinyele, 2007).

Foreign Literature

In David Allen’s Book entitled Getting Things Done: The Art of Stress-Free

Productivity, it’s possible for a person to have an overwhelming number of things to do

and still function productively with a clear head and a positive sense of relaxed control.

That's a great way to live and work, at elevated levels of effectiveness and efficiency. It's

also becoming a critical operational style required of successful and high-performing

professionals. You already know how to do everything necessary to achieve this high-

performance state. If you're like most people, however, you need to apply these skills in a

more timely, complete, and systematic way so you can get on top of it all instead of
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feeling buried. And though the method and the techniques I describe in this book are

immensely practical and based on common sense, most people will have some major

work habits that must be modified before they can implement this system. The small

changes required—changes in the way you clarify and organize all the things that

command your attention—could represent a significant shift in how you approach some

key aspects of your day-to-day work. Many of my clients have referred to this as a

significant paradigm shift.

Employees rank benefits in 7th position out of the 11 most important factors, the

fulfilment of which impacts positively their job motivation (Nĕmečková, 2013). In the

study, the importance given by the employees of the financial sector in Czech Republic to

sick days and contributions to pension schemes was highlighted. This may be related to

the basic needs needed by each individual. Many initial theories were based on instincts

supported by psychodynamic theories of personality. A.H. Maslow in his ‘Hierarchy of

Needs Theory’ replaced the term ‘instinct by need’ (Landy & Conte, 2010 Landy, F. J., &

Conte, J. M. (2010). However, the personal interviews and roundtable discussions

showed that employer contributions to pension schemes and meals are already taken for

granted by most employees. The same can be said about an additional week of vacation

over that which is required by law. It should be emphasized that benefits – with regard to

the Herzberg’s theory of two dimensions of motivation to work – must be seen as a

hygiene factor, a so called dissatisfactor, which serves primarily to prevent employee

dissatisfaction and it is an important prerequisite for their satisfactors, or motivators of

intrinsic needs. It is important to realize that preferences of employees may vary

depending on the period of economic cycle and as some literature suggests, for instance,
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managers usually report higher satisfaction than ordinary employees during boom periods

(Ahn & Sánchez-Sánchez, 2013 Ahn, N., & Sánchez-Sánchez, N. (2013).

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Chapter 3

METHODOLOGY

This chapter is divided into several parts, namely: Population, Sample size, Data

Collection, Research Design, Respondents of the Study, Instrument of the Study, and

Data Analysis and Statistical Treatment.

3.1 Population

The target population of this study revolves around the teachers of different public

schools in Makati, specifically San Isidro Nation High School, San Antonio National

High School, Makati High School, and University of Makati. Each educational institution

mentioned consists of 30 respondents which were chosen using the convenience sampling

method resulting to an overall total of 120 respondents.

3.2 Sample size

30 respondents were chosen by the researchers using the convenience sampling

method for the reason that the goal of the researchers is to find available respondents who

are currently employed in a public high school/ educational institution within the city of

Makati. Convenience sampling method is a non-probability sampling method that

primarily aims to garner responses from individuals who are available at the time the

survey was conducted.

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3.3 Data Collection

The researchers gathered the needed information and data through:

1. Primary Sources

The 30 respondents will be surveyed by the researchers through distribution of

questionnaires to acquire the data needed for the study which will be presented in

the following chapter.

2. Secondary sources

Secondary data were gathered through the literatures, studies, and other forms of

text that are relevant and related to the study which are presented in the second

chapter.

3.4 Research Design

This study utilizes quantitative research design in determining the Relationship

between Employee Benefits and the Motivation of Teachers on Different Public High

Schools around Makati City, Philippines. Necessary information were gathered through

the use of questionnaires consisting of 15 questions in the form of Likert Scale wherein

textual values were translated into numerical values.

3.5 Respondents of the Study

In each educational institution listed, thirty (30) respondents were chosen according to

their availability. With reference to employee records, the researchers shall ensure that

the chosen teachers have been working at the educational institution for a minimum of six

(6) months and have already been regularized.

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3.6 Instrument of the Study

Questionnaires will be used as instruments in this study to obtain data regarding the

Relationship between Employee Benefits and the Employee Motivation of Teachers on

Different Public High Schools around Makati City, Philippines. The questionnaires are

standardized, which means that the questionnaires will not come from the researchers. It

has been already used in past studies as cited in the questionnaire form distributed to the

respondents, which shall be answered through the Likerts Scale.

3.7 Data Analysis and Statistical Treatment

The results that the researchers gathered from the respondents will be shown through a

Descriptive Statistical Analysis whereas the researcher will be using charts and graphs to

present the gathered data, to further analyze, and interpret the collected information from

the respondents to come up with a conclusion. With the gathered data from the

respondents, the researchers would be analysing and interpreting the collected

information using the Pearson-Correlational as the Statistical Treatment to determine the

relationship between variables.