CHAPTER I

Background of the Study

Introduction

Earlier thinking about fiscal policy was challenged at its root—namely, the

proposition that fiscal policy does not affect total national output. Successful

challenge to this proposition brought the level of total output and total

employment to the forefront of the objectives of fiscal policy. It also radically

altered thinking about policy to achieve the traditional objectives.

The revolution in thinking about fiscal policy can be dated from the

publication of John Maynard Keynes’s General Theory of Employment, Interest

and Money. This work had its precursors and was subsequently explained,

extended, refined, and in part controverted by others. But the General Theory

was the turning point. All serious argument about fiscal policy since it was

published, even the argument that completely denied the Keynesian conclusions,

has been influenced by it.

Older theory would have emphasized reactions to a decline in this ratio

which took the form of attempts of individuals and businesses to build up their

money holdings by cutting their expenditures, which would in turn reduce total

income. The newer theory emphasized two other possibilities. One was that

money holdings were already “redundant,” so that there would be no felt need to

increase money holdings as incomes increased. The other possibility was that

individuals and businesses would try to build up their money holdings by selling

interest-bearing securities (rather than by cutting their expenditures). This would

reduce the prices of such securities, and raise the interest rates they yielded,

until a point was reached at which people would no longer consider it worthwhile

to sell securities at low prices, or give up interest, in order to get more money.

(Sorrell 2010)

Fiscal policy is a set of ideas or a plan of what to do in a particular

situation that has been agreed by a group people, a business organization, a

government or a particular party. A definite course or method of action selected

from among alternatives of given conditions to determine present and future

decisions because it serves as guidelines to our day to day actions on the job.

Fiscal policy must be useful for the intended users and it should be inspiring for

them. Without fiscal policy in any organization will cause conflict because

employees can do whatever they want and as a result they cannot provide a

good quality of services to their customers. (Business Dictionary 2013)

Many years passed since the institution of Gensantos Foundation College

Inc. Has been founded, and the fiscal policy translated by the top management

have helped a lot to discipline its employees and made a good working

environment for them .its fiscal policy became part of its success throughout the

year. Without this the institution would not last for too long. It is the foundation for

the good teaching provided by its employees to their students.

Statement of the problem

The researchers aim to gather answer from the teachers in GFI for the

study titled “The Impact of Fiscal Policy of Gensantos Foundation College,

Incorporated and Its Effects to the job performance of its Employees"

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

1.1 Age;

1.2 Gender;

1.3 Civil Status;

1.4 Educational Background;

1.5 Monthly Income; and

1.6 Position/Designation?

2. What are the Fiscal Policies imposed by GFI in terms:

2.1 Incentives/Benefits;

2.2 Salaries and Wages;

2.3. Infrastructure/Constructions;

2.4 Professional Development; and

2.5 Other operating expenses?

3. What is the effect of the fiscal policies to the work performance of the

employees;

4. What is the level of job performance of the employees at Gensatos Foundation

College, Incorporated; and

5. Is there a significant correlation between the fiscal policies of GFI to the level

of work performance of the employees?

Hypothesis

Ho: Fiscal policy of the Gensatos Foundation College, Inc. is not correlated

with the level of job performance of the employees.

Conceptual Framework

Input Process Output

1. Respondent’s profile Data Gathering Result of the

Age; procedure research
1.2 Gender; study entitled
1.3 Civil Status; 1. Survey The Impact of
1.4 Educational Background;
1.5 Monthly Income; and Fiscal Policy
1.1
1.6 Position/Designation? of GFI and its
Questionnaire
Effect to the
2. Fiscal Policy imposed by GFI Form
and their rating:
Job
2.1 Incentives/Benefits; 1.2 Performance
2.2 Salaries and Wages; of its
Statistical
2.3. Infrastructure/Constructions; Employees
2.4 Professional Development; treatment
2.5 Other operating expenses

3. Effect of the fiscal policies to

the work performance of the
employees.

4. The level of job performance

of the employees at Gensatos
Foundation College,
Incorporated.

Figure1 Conceptual Framework of the study

The researchers will use the above conceptual framework as guide on

how to achieve the main goal of the study, to evaluate the fiscal policy of GFI.
The researchers will use the input above to gather information from the

respondents by conducting survey and giving questionnaire form. All the

information gathered will be processed under a proper statistical treatment. And

then we will come up with the output as a result of the research study.

Important information of the respondents will also be considered by the

researchers as well as some basic information about the implementation of the

fiscal policies at Gensatos Foundation College, Inc. Likewise, the researchers will

institute data gathering procedure which will help the researchers carry their

study into its purpose.

Scope and Delimitation

The research study aims to know the impact of fiscal policy of GFI and its

affect to the job performance of its employees.

This study will focus only in gathering information from the employees who

are working under the guidelines of the said institution for SY 2017-2018 The

information to be collected by the researchers will be examine using appropriate

procedures for easier and better understanding of the result of the study. There

will be 30% employees’ population to be considered to participate in the said

survey. Quantitative-descriptive research will be utilized as the research design

of the study.

The respondents will be given a survey questionnaire form to fill up their

personal data, it will be examined and handle confidentially and will be used for

academic purposes. The researchers will conduct this study in GFI only within

the SY 2020-2021.
Significance of the Study

The result of the study will be of great benefit to the following:

To the Philippines, this study will help the people to understand the

importance of fiscal policy in the performance of the teachers to mold the future

hope of our society to become a better person.

To General Santos City, this research will encourage the higher

educational institutions to improve their fiscal policy for the better teaching of

their employees.

To Gensantos Foundation College, Incorporated (GFI), the result of

this research study will help them for the Innovation of their fiscal policy that can

uplift their standards in terms of teaching wish can attract more prospect

enrollees in the institution.

To the teachers, the result of this research paper will encourage them to

fulfill their responsibilities in the organization. And do their best to provide good

services to the students under the guidelines of the institution.

To the students, the result of this study will provide the students the

knowledge on how the fiscal policy works and its great contribution in an

organization.

To the researchers this study will help us to know the importance of

Fiscal Policy. The study will help them understand better the scenario at the

same time will give them an idea on how school works in order to sustain its role

in the community.
 To the Future Researchers this research will serve as their guide for their

future study. The ideas and the results of the study will give them additional

references which will benefit their future researches.

Definition of Terms

These are some of the terms used in this study and are being defined

operationally for the better understanding.

Employees - An individual who works part-time or full-time under a contract of

employment whether oral or written, express or implied and has recognized

rights and duties, also called workers.

Fiscal Policy. This term refers to some of the practices imposed by GFI in terms

of Incentives/Benefits; Salaries and Wages; Infrastructure/Constructions;

Professional Development; and Other operating expenses.

General Santos City - A mid-sized and improve city in Region 12 where

Gensantos Foundation College Inc. is located.

Gensantos Foundation College Inc - A higher educational institution in General

Santos City that helps the students to achieve their goals.

Impact. It pertains to the effect of the fiscal policy to the work performance of the

employees at Gensantos Foundation College, Inc.

Incentives - An incentive is something that motivates an individual to perform an

action. The study of incentive structures is central to the study of all economic

activities.
Salary - Is a form of payment from an employer to an employee, which may be

specified in an employment contract. It is contrasted with piece wages, where

each job, hour or other unit is paid separately, rather than on a periodic basis. .