FACTORS AFFECTING EMPLOYEE PERFORMANCE AND JOB SATISFACTION

OF FAST FOOD CHAINS: A STUDY OF JOLLIBEE AND MCDONALD’S IN BOGO

CITY

A research Proposal
Presented to
The Faculty of the College of Commerce
Cebu Roosevelt Memorial Colleges
San Vicente St., Bogo City, Cebu

In Partial Fulfilment
Of the Requirement for the degree
BACHELOR OF BUSINESS ADMINISTRATION
Major in Financial Management

LYN LUMAPAS
CYRENE PUNAY
KATHLEEN DABLO
MARY GRACE TERO
KATHLYN QUINATADCAN
JHENNIE GHENE DELOS REYES
December 2023

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 TABLE OF CONTENTS
I THE PROBLEM

Introduction 1

Theoretical Framework 4

Statement of the Problem 7

Statement of Null Hypothesis 8

Significance of the Study 9

Definition of Terms 12

II REVIEW OF RELATED LITERATURE

Introduction 14

Discussion of Related Literature 16

Synthesis 34

III RESEARCH METHODOLOGY

Research Design 35

Environment/ Locale 35

Respondents/Participants 36

Instruments/ Source of Data 37

Data Gathering Procedure 39

Data Analysis/ Treatment of Data 41

Ethical Consideration 43

REFERENCES 50

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APPENDICES
Appendix A - Transmittal Letter 63
Appendix B – Research Questionnaire 65
CIRRICULUM VITAE 76

LIST OF TABLES

Table Description Page

i. Participants of the Study 37

LIST OF FIGURES

Figure Page

ii. Schematic Diagram of Theoretical Framework 6

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 Chapter 1
THE PROBLEM

Introduction

According to Enotes (2020), business is one of the main contributors to economic growth.

Economic growth often relies on the establishment, expansion, and success of businesses, both

small and large. Entrepreneurs and businesses contribute to job creation, innovation, and overall

economic development. To achieve a successful business, it takes outstanding performance and

job satisfaction of employees. The majority of Filipinos and other businesses invest in starting

their various forms of food businesses in Cebu, where Cebuano’s are known for their love of fast

food. Fast food is often chosen for its convenience, quick service, and standardized menu items,

making it a popular choice for many consumers. Currently, lots of fast food chains are

established around the city. These fast-food businesses include Jollibee, and McDonald’s in

Bogo City, Cebu.

Employee performance is frequently seen as an indicator of an organization's performance

and has a significant impact on the organization's reputation, claim Silitonga and Sadeli (2020).

High-performing employees contribute to increased productivity, efficiency, and overall success.

The performance of individual employees contributes to the overall productivity of the

organization. Highly motivated and skilled employees are likely to be more productive, leading

to better organizational outcomes. Khosa et al. (2015) also stated that many businesses in today's

strongly competitive environment must have committed, competent workers to achieve their

goals and sustain success. Their commitment ensures consistent effort, while their capabilities

drive effective problem-solving and the ability to adapt in a competitive landscape. These

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employees play a crucial role in helping businesses achieve their goals and objectives.

Companies require individuals who are not only dedicated to their roles but also possess the

necessary qualifications and abilities that align with the company's needs. Having such

competent employees is vital for organizations to stay ahead in the competitive market and

achieve their desired outcomes. Building competent and motivated employees also requires job

satisfaction. According to a study by Inayat and Khan (2021), job satisfaction is the positive and

enjoyable feeling that results from the evaluation of one’s job or job experience. Individuals who

find their work meaningful and fulfilling are likely to experience higher job satisfaction.

Employee performance can affect the success rate of a job because the results achieved can

be known how much an employee's performance results. Several factors can contribute to poor

employee performance and job dissatisfaction, including unclear expectations, inadequate

training, lack of recognition, limited career advancement opportunities, poor workplace culture,

ineffective communication, and insufficient work-life balance. Understanding and addressing

these factors can help improve overall job satisfaction and performance.

Understanding the factors that contribute to employee performance and job satisfaction is

essential for enhancing overall organizational effectiveness. High-performing and satisfied

employees are more likely to contribute positively to the achievement of organizational goals.

The purpose of the current study is to determine the factors affecting employee job satisfaction

and how it relates to performance level, keeping in mind the role the private sector plays in

society and the importance of job satisfaction in raising employee performance. This study is

valuable for organizations seeking to optimize their human resources, improve workplace

conditions, and achieve long-term success. The insights gained from this study contribute to

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informed decision-making and the development of strategies that support both employees and

organizational objectives.

Theoretical Framework

The theoretical framework guiding this study, which explores the factors affecting employee

performance and job satisfaction in fast-food chains, draws from two key theories: Campbell’s

Theory of Performance by John Campbell (1990) and the Discrepancy Theory by Edwin A.

Locke (1976).

Campbell (1990) defined performance as behaviors or actions that are relevant to the

organization's goals and that can be measured in terms of the level of contribution to those goals.

These actions can be separated from efficacy, which is the effect an action has on results. He

goes on to say that an individual's ability to do technical abilities are the foundation of their task

competency for a certain job. Also, work performance evaluates how successfully an individual

does their work. Academic research on job performance is conducted in the field of industrial

and organizational psychology, which is closely related to human resources management.

Performance is a crucial factor in determining the success and consequences of a business.

According to John P. Campbell, a single person's performance on the job is an individual-level

variable. This sets it apart from higher-level variables that are more inclusive constructs like

organizational performance or national performance.

Discrepancy theory focuses on the comparison between what an individual wants from their

job and what they perceive they are getting, leading to job satisfaction or dissatisfaction based on

the perceived gaps. This theory suggests that individuals engage in cognitive comparisons

between their job-related expectations and the outcomes they receive from their jobs. Job

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satisfaction, according to this theory, is influenced by the perceived discrepancy between what

individuals want from their job (their preferences or expectations) and what they perceive they

are getting. If individuals perceive that they are getting more from their job than they expected or

wanted, they experience positive job satisfaction. This positive discrepancy contributes to

positive feelings about the job. Conversely, if individuals perceive that they are getting less from

their job than they expected or wanted, they experience negative job satisfaction. This negative

discrepancy contributes to dissatisfaction with the job.

In this study's theoretical framework, both Campbell’s Theory of Performance and

Discrepancy Theory contribute to improving and justifying the performance of employees in

accordance with their level of job satisfaction. However, each theory provides a unique

perspective on how individuals evaluate and respond to their work experiences.

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 Factors Affecting Employee Performance Relationships
Leadership and
and Job Satisfaction with Superiors
Management
Figure 1.
Working
Training and Conditions
Schematic Diagram of the Conceptual Framework of the Study
Development

Campbell’s Theory of Performance

(John Campbell, 1990)

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Statement of the Problem
This study aims to determine the factors affecting employee performance and job

satisfaction in fast-food chains, specifically the establishments of Jollibee and McDonald’s in

Bogo City. The findings served as the basis for the proposed action plan.

Specifically, this study will address the following questions:

1. What are the consolidated factors affecting employee performance in fast-food chains as

perceived by the respondents in terms of:

1.1 training and development;

1.2 leadership and management;

1.3 feedback and recognition?

2. What is the respondents’ level of job satisfaction in the fast-food chains in terms of:

2.1. Overall satisfaction with working conditions

2.2. Relations with the superior

2.3. Satisfaction with salary

3. What are the problems encountered by the respondents in terms of employee

performance?

4. Is there a significant relationship between the factors affecting employee performance and

job satisfaction?

5. Based on the findings, what interventions can be proposed?

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Assumptions and Hypothesis

An assumption is something valid but has not been verified (Nkwake & Morrow, 2016).

The research study is predicated on the assumption that the respondents will be truthful in their

responses to the questionnaires, resulting in data that will be accurate and reliable for the

researchers to ascertain their experiences with the factors affecting employee performance and

job satisfaction. The research study is also thought to be current and useful for the respondents,

which will produce an outcome that will provide the knowledge needed to answer the question.

Statement of Hypotheses

To answer the objective of the study, the following hypotheses were tested.

Null Hypothesis (H01): There are no significant factors affecting employee performance and job

satisfaction in fast-food restaurants.

Null Hypothesis (H02): There is no significant relationship between and among the factors

affecting employee performance and job satisfaction.

Significance of the Study

The factors affecting employee performance and job satisfaction in fast-food chains in the

chosen establishments in Bogo City were the main subjects of the study. Additionally, the

following will benefit from the study's findings:

Establishments and Relevant Management. The selected establishments and the

management will be given knowledge of the factors affecting employee performance and job

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satisfaction to the success of the business. The management will gain ideas for creating a

positive, inclusive, and supportive work environment that can contribute to increased job

satisfaction and improved performance. This will serve as their guide to better give proper

treatment and motivation to their employees. With this, they can plan and provide the best

solutions to conflicts regarding the said topics, if any.

Respondents/ Employees. The respondents will have the opportunity to express their insights

and viewpoints regarding their performance and their level of satisfaction with the jobs they have

or have not had access to. They will be able to better comprehend the significance of their

performance and their satisfaction with their employment as a result of the study's connections to

and embrace of their experiences.

Aspiring Entrepreneurs. Those who have the potential and plans to open up their own business

will have an idea of how to properly handle their future employees for better performance. Also,

they will understand the importance of knowing the factors that affect the performance and job

satisfaction of employees. Their future business will surely attain success with the help of their

future excellent employees.

Researchers. The purpose of this research is to add to the collection of knowledge in the

business field by providing insightful information on the several aspects influencing work

satisfaction and employee performance. New concepts and frameworks in the business sector

may result from these discoveries. Additionally, the findings can be used by academics to guide

subsequent studies and strategies aimed at enhancing aspects that support company operations,

which may result in creative approaches to improving learning opportunities. Furthermore, this

study has the potential to improve the researchers' reliability and image, which could lead to

further funding and collaboration opportunities in the relevant field. In the end, the study has the

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potential to have a significant influence on business operations and to further the intellectual and

professional development of researchers.

Future Researchers. They will be able to obtain information and suggestions for research on the

food business through this study. The provided recommendations/suggestions can also serve as

an outline for their future research projects.

Definition of Terms

Researching is similar to building a well-tuned instrument. The terms' definitions of

terms serve as a tuning key to make sure the tone of the study is harmonic and understandable.

Researchers must thoroughly define their concepts in order for them to resound with accuracy

and clarity in the symphony of scholarship, just as a musician must precisely tweak the strings of

an instrument (Williams, 2019). Worker performance is a broad term that encompasses more

than just finishing tasks. It involves a number of elements that work together to enhance a

person's effectiveness in an organization.

Employee performance refers to how well a crew fulfills their job responsibilities and

achieves set goals within a company. It's about the quality of their work, their productivity, and

their contributions to the overall success of the team or organization. It encompasses factors like

meeting deadlines, producing high-quality work, and positively impacting the establishment’s

objectives.

Poor Performance refers to an employee's inability to meet job expectations or standards set by

the employer. It can manifest as consistently low productivity, quality issues, or a failure to

achieve agreed-upon goals.

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Job Satisfaction refers to the contentment or fulfillment an individual experiences in their work.

It is often influenced by factors such as a positive work environment, recognition, meaningful

tasks, and a sense of accomplishment. Employees with high job satisfaction are more likely to be

motivated, engaged, and productive in their roles.

Motivation refers to the inner drive that pushes someone to do things. It's the spark that makes

people want to take action, whether it's completing a task, reaching a goal, or doing something

they enjoy. Motivation can come from various sources, like personal satisfaction, rewards, or the

desire to achieve something meaningful.

Consumer refers to an individual or entity that purchases and uses goods or services to satisfy

their needs and wants. In the context of the economy, consumers play a vital role in driving

demand for products, influencing market trends, and shaping the overall business landscape.

Understanding consumer behavior is essential for businesses to tailor their offerings and

marketing strategies effectively.

Employees refer to individuals hired by an organization to perform specific roles or tasks in

exchange for compensation. They contribute to the functioning and success of the fast-food

business by applying their skills, knowledge, and efforts to achieve organizational objectives.

The relationship between employers and employees is typically governed by employment

contracts and involves mutual rights and responsibilities.

Fast Food refers to quick, ready-to-eat food served in restaurants, often through drive-thrus or

counter service. It's typically pre-prepared and known for its convenience, offering dishes like

burgers, fries, pizza, and sandwiches. Fast food is popular for its speed and easy access, catering

to people looking for a quick meal on the go.

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Organization refers to a group of people working together toward common goals. It has a

structure, with individuals assigned specific tasks and responsibilities. The purpose of an

organization is to achieve success and fulfill its objectives through coordinated efforts.

Work environment refers to the surroundings, conditions, and culture within which work is

conducted. It includes elements such as a kitchen, dining area, lobby, and counter. A positive

work environment fosters employee satisfaction, collaboration, and overall organizational

success.

Training refers to the process of teaching or developing skills, knowledge, or competencies in

individuals or groups. It's a systematic approach aimed at enhancing performance, typically

through guided instruction, practice, and feedback. Effective training helps individuals acquire

new abilities, refine existing skills, and adapt to changing roles or demands within a specific

context or field.

Development refers to the process of growth, advancement, or improvement in various aspects,

such as personal skills, knowledge, or economic progress. It involves systematic efforts to

enhance overall capabilities, often with long-term goals in mind.

Leadership refers to the ability to guide, inspire, and influence others to achieve common goals.

Effective leaders often exhibit qualities such as vision, decisiveness, and the capacity to

empower and support their team members.

Management refers to the planning, organizing, and controlling of resources to achieve

organizational goals efficiently and effectively. It encompasses coordinating people and tasks,

making decisions, and adapting to changing circumstances to ensure the success of a business or

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project. Effective managers require leadership skills, communication, and a strategic approach to

guide a service crew toward desired outcomes.

Feedback is information provided to individuals or entities regarding their performance,

behavior, or results. It serves as a valuable tool for improvement, offering insights, constructive

criticism, and praise to enhance the future performance of employees.

Recognition is the acknowledgment and appreciation of an individual's or a group's efforts,

achievements, or contributions. It goes beyond tangible rewards and involves expressing

gratitude and highlighting the value of the crew's work.

Compensation refers to the total package of financial and non-financial benefits that employees

receive in exchange for their work. It includes wages or salary, bonuses, benefits such as health

insurance and retirement plans, and other perks.

Benefits are non-financial rewards provided to employees in addition to their salary or wages.

These can include health insurance, retirement plans, paid time off, and other perks that enhance

an employee’s overall well-being.

Satisfaction refers to the state of contentment or fulfillment derived from meeting one's

expectations or desires. It reflects a subjective feeling of pleasure or happiness resulting from a

positive outcome or experience. Customer satisfaction, for example, is often measured to gauge

the level of contentment individuals have with products, services, or experiences.

Superior refers to a person who is in charge of managing and directing the restaurant's day-to-

day activities. Typically, they oversee personnel, ensure that rules and regulations are followed

by the business, and work to keep customer satisfaction levels high. In the fast food industry,

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supervisors or managers are essential to preserving productivity, quality assurance, and a happy

workplace.

Proposed Intervention refers to a planned action or strategy designed to address a specific issue

or challenge in a targeted setting. It involves suggesting changes, initiatives, or programs with

the aim of improving a situation, process, or outcome. The effectiveness of a proposed

intervention is often assessed through careful planning, implementation, and evaluation.

Challenges refer to difficulties or obstacles that individuals or groups face while trying to

achieve their goals. They can come in various forms, such as limited resources, time constraints,

or unexpected problems. Overcoming challenges often requires problem-solving skills,

resilience, and adaptability.

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 Chapter 2
REVIEW RELATED LITERATURE
The literature review is an essential starting point for comprehending the main ideas and

conclusions of the research that provide the context for the study. This study's first chapter lays

the groundwork for investigating the variables influencing employees. The literature and relevant

research that explain the factors affecting employee performance and job satisfaction are

reviewed in this chapter. It contains research and supporting documentation covering pertinent

details about the topic. In relation to Chapter 1, the investigator establishes the framework for the

research questions, methodology, and conclusions of the study by bridging the gap between

previous research and the current investigation.

Introduction
An overview of the study's historical framework and the particular business setting under

investigation is given in this chapter. It looks at the relevant issues surrounding job satisfaction

and performance in the context of business learning and aims to create a meaningful relationship

between employers and employees' active engagement inside the organization. The chapter is

organized into four major subject areas to aid in this analysis. Each segment is supplemented by

a number of subtopics designed to further our comprehension. The study focuses on five key

areas: employee performance, factors of employee performance; work environment; leadership

and management; training and development; feedback and recognition; compensation and

benefits, job satisfaction, and the factors of job satisfaction; overall satisfaction with working

conditions, and satisfaction with salary. The final section explores the potential effects of these

factors on the performance of the employees.

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 Understanding the various factors that influence an employee's work performance and overall

well-being is crucial in the dynamic landscape of modern business. Several key factors play a

role in shaping the employee experience and contribute to their performance and well-being. The

literature review does a thorough analysis of the fundamental idea that underpins the variables

influencing employee satisfaction and work performance at McDonald's and Jollibee. This

review aims to clarify the complex dynamics at work by thoroughly analyzing pertinent

academic research. It does this by looking at the various extrinsic and intrinsic factors that

influence the relationship between job satisfaction and employee performance in the particular

setting of the business sector. Through an exploration of the subtle relationships among the

variables above, this study seeks to offer a comprehensive picture of how these factors interact

and affect workers' experiences at work.

Employee Performance

According to Al Mehrzi and Singh (2016), performance is the result or level of success of

a person as a whole during a certain period in carrying out tasks compared to various

possibilities, such as work standards, targets or targets, or predetermined criteria that have been

mutually agreed upon. It means how well a person accomplishes their tasks compared to agreed-

upon standards, goals, or criteria within a specific time frame. It's about measuring someone’s

success in completing their duties as expected. Yang et al. (2016) also stated that performance is

basically what employees do or do not do. It essentially encompasses the actions and behaviors

of employees on what they actually do or don’t do while carrying out their responsibilities within

an organization which reflects their level of productivity, efficiency, and effectiveness in

fulfilling their duties or tasks assigned to them. Moreover, employee performance is an important

part of the company to improve the effectiveness of human resources (Snell & Bateman, 2018).

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It means how well employees carry out their tasks within an organization and how well they

contribute to achieving the organization's goals. The performance of the staff directly influences

how much work gets done, how satisfied the team feels, and the overall results a company

achieves. When employees perform well, they are more productive, and happier, and contribute

positively to the company’s bottom line.

(Insan et al., 2013) find out that the employees’ performance depends on employee

satisfaction; this shows that the higher the level of job satisfaction, the better the employees’

performance. Job satisfaction refers to how content or fulfilled employees feel with their roles,

work environment, and the organization. Additionally, when individuals are happy with their

jobs, they often demonstrate higher levels of creativity, innovation, and problem-solving skills,

resulting in better-quality work. Furthermore, satisfied employees tend to have a stronger

connection to the organization’s goals and are more likely to align their efforts with achieving

these objectives. Their commitment often leads to better collaboration, teamwork, and a

willingness to go above and beyond in their roles.

The measures of success are focused on productivity, efficiency, effectiveness, quality,

and attendance of work (Arinanye, 2015). When employees really believe in what their company

stands for, they tend to work harder. It’s like they put their heart into their job because they care

about the same things the company cares about. This makes them do better work, be more

productive, and feel more connected to the company, which helps the company succeed too.

Factors of Employee Performance

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Work Environment

The employee behavior is influenced by the work environment that depicts effectiveness

and efficiency at the work environment (Bushiri, 2017). The work environment has an impact on

the employees’ behavior and performance. A positive and properly organized work environment

tends to promote effectiveness and efficiency among employees. When the workplace has clear

communication and good leadership the employees are more likely to feel motivated and

engaged in their tasks. This positive work environment can contribute to having an effective and

efficient employee. Employees working in a positive and systematic work environment are

confident in their work and feel their work is not demanding more than what is required from

them, they are not using up their family time at work or other non-work meaningful activities

and roles they have for achieving the work targets they have (Stalmašeková, 2017). Employee

confidence is greatly enhanced by an organized and positive atmosphere. Employees are more

likely to feel confident in their roles when they work in an environment that values open

communication, respect for one another, and well defined expectations. This self-assurance

comes from the understanding that their efforts are acknowledged and appreciated, fostering a

favorable workplace atmosphere that enhances a feeling of career achievement.

Generating employee confidence is largely dependent on having a structured and positive

work environment. Workers are more likely to feel safe in their positions when they work in an

environment that values open communication, mutual respect, and defined expectations. This

confidence stems from the understanding that their efforts are appreciated and acknowledged,

which fosters a productive workplace and a sense of achievement in one’s career. Having a

negative work environment can also affect their behavior and work performance. Poor

environmental conditions at work and poor management by supervisors might lead to bigger

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differences in achieving their goals. Thus making it hard to achieve and at times impossible to

meet those objectives in the worst conditions (Okasheh2, 2017). An unfavorable work

environment may negatively impact the behavior of workers. Employee disengagement and

decreased productivity may result from unclear roles and duties, poor communication channels,

or an unwillingness to recognize contributions. Stress, annoyance, and a general drop in

employee morale can result from a toxic work environment, which can have a detrimental effect

on both individual and group performance.

Leadership

Some previous research (e.g., Thanh et al., 2020; Nguyen et al., 2019; Suong et al., 2019;

Yang & Kim, 2018) show that leadership has a vital effect on organizational activities.

Leadership is needed to improve the company’s competitiveness on an ongoing basis.

Leadership is a process by which a person can become a leader through continuous activities to

influence followers to achieve the organization’s or company’s goals. When it comes to

organizational functions like performance, motivation, communication, and decision-making,

leaders are essential. They communicate effectively with their followers to make sure everyone

is aware of their duties and responsibilities, and they make strategic decisions that support the

organization’s objectives and core values. Good leaders encourage and inspire their team

members to give their all by giving them the tools, encouragement, and feedback they need.

Studies have indicated that employee satisfaction, engagement, and retention can be influenced

by leadership. Positive relationships are more likely to be fostered by leaders who exhibit

empathy, trustworthiness, and justice, which raises job satisfaction and engagement levels.

Leaders who place a high priority on the development and advancement of their staff members

also have a higher retention rate. Leadership also has a significant impact on organizational

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performance, including productivity, profitability, and customer satisfaction. Effective leaders

create a positive work environment that fosters collaboration, innovation, and accountability.

They also ensure that resources are allocated efficiently and effectively to achieve the

organization’s goals.

Researchers discovered that leadership is one of the basic means used in the attainment of

organizational goals/objectives, every organization should ensure that the right leader man their

organization in order to achieve their set goals and or objectives (Ibrahim, A. U. and Daniel, C.

O. 2019). Leadership is a critical factor in achieving organizational goals and objectives. It

involves the ability to influence and guide individuals towards a common purpose. Effective

leadership is essential for organizations as it ensures alignment of individual efforts with the

overall organizational strategy, enhances motivation and commitment, fosters a positive work

environment, and promotes innovation and adaptability. The right leader is crucial for an

organization’s success. They should possess the necessary skills, knowledge, and experience to

lead their team effectively. The leader should be able to communicate clearly, listen actively, and

provide constructive feedback. They should also be able to manage conflicts and inspire trust and

respect among their team members. They should also be able to adapt their leadership style to

suit the needs of their team and the organization’s culture. Simsek and Ozturk (2018), there is a

strong and positive effect of leadership style on the organization’s success and employee

performance. The study highlights that effective leadership can inspire and motivate employees,

fostering a positive work environment that encourages productivity and innovation. Leadership

styles that prioritize communication, support, and empowerment can establish a culture where

employees feel appreciated and involved. This can result in higher job satisfaction and

commitment, which can positively impact employee performance. By providing clear direction,

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setting achievable goals, and fostering a collaborative environment, employees are more likely to

excel in their roles.

Management

They can foster a relationship of mutual trust and loyalty between management and

employees (Hatter, 2016). One of the key elements of a powerful organizational structure is the

relationship between employees and managers. Employees look to their supervisors for advice

on how to advance their careers and develop their abilities. Trust is one of the key components of

a productive employee-manager relationship. When there is a high level of trust between a

worker and their management, other aspects of workplace productivity are enhanced. Multiple

layers of trust are necessary for employee development. A growth plan is developed by the

manager after careful consideration of the employee’s performance. The worker has confidence

in the manager’s advice. The employee’s career may suffer if their abilities are not appropriately

cultivated. The management has faith in the employee’s ability to carry out the training plan and

participate in ongoing program improvement meetings. Employees and managers must be

committed to an employee development plan. Both sides of the connection among workers and

managers are more loyal when there is a high level of trust. When a manager asks a worker to go

above and beyond the call of duty to complete a crucial project, the worker has confidence in her

abilities and accepts to put out the extra effort. In exchange, a manager can provide an employee

with an extensive period of absence to handle a personal matter in the hopes that the staff

member will stay in touch and eventually resume her work.

Training

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 According to Dermol and Cater (2013), the acquisition of new knowledge and skills

through training leads to improved employee performance. This is because training is vital for

employees as it provides them with the necessary tools and techniques to improve their job

performance in a better and more efficient way. It helps employees to understand their roles and

responsibilities. Training empowers employees to acquire new skills and knowledge to enable

them to handle difficult tasks and bigger responsibilities. As a result, job satisfaction goes up as

employees feel more sure and confident in their abilities. This helps them identify areas they

could improve on and gives employees the resources they need to address weaknesses actively.

In the training process, employees acquire technical skills, interpersonal skills and solid

knowledge in order to perform their jobs efficiently and effectively at the workplace and lack of

ongoing training programs leads to lower performance of employees (Nawaz, Masoodul, &

Saad, 2014). Ongoing training programs are essential for fostering employee growth and

performance, as they offer valuable chances for learning new technical and interpersonal skills

and acquiring solid knowledge. Without these programs, employees may remain stagnant in their

positions and lack the necessary abilities to effectively carry out their duties. This can ultimately

result in decreased performance, as employees may struggle to meet the demands of their roles or

fail to adjust to changes in the workplace. Additionally, continuous training enables employees

to stay current on industry developments and adopt best practices, which is especially vital in the

ever-changing landscape of today’s business world. Training not only develops the capabilities

of the employee but sharpen their thinking ability and creativity in order to make a better

decision in time and in a more productive manner (Elnaga & Imran, 2013). Organizations can

enhance the critical and creative thinking abilities of their employees by providing opportunities

for learning and development. This well-planned investment enables individuals to sharpen their

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problem-solving abilities, create innovative solutions, and make well-informed decisions. In the

end, this can lead to increased productivity, better efficiency, and overall enhanced performance.

It is crucial for organizations to give priority to training programs that encourage critical thinking

and creativity in their employees, as these qualities are essential for achieving success.

Development

According to (Genzorová, 2017), development is referred to as the growth level of

individuals and their self-realization. The concept goes beyond just physical development and

includes the mental, emotional, and social aspects of a person’s growth. It involves gaining new

skills, knowledge, and values, as well as the ability to adjust and react to changing situations.

Development is a continuous process that continues throughout a person’s life, following

established standards. Developing is known as core competencies improving and grooming

employees to meet future demands to adapt to new environments and meet challenges (Ali,

2016). It is vital for organizations to adapt and overcome new challenges. One key way to

achieve this is by prioritizing the growth and development of their employees. By investing in

their employees' growth, organizations can ensure that they have a highly skilled workforce

capable of handling future demands and thriving in a changing environment. This not only leads

to higher productivity but also boosts job satisfaction. Development is, therefore, crucial for

organizations to stay competitive and succeed in a rapidly evolving business landscape.

Improving the performance of these employees is not only beneficial for the company but also

for the employees themselves. Because good performance theoretically can achieve a better level

of employee career development (Siahaan et al., 2016). When employees excel in their work,

they become more valuable to the company. This can open up opportunities for career growth

because companies are more likely to promote employees who consistently perform well and

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contribute to the organization’s success. Moreover, high-performing employees may receive

additional training and development opportunities, which can help them gain new skills and

knowledge to further advance their careers. By enhancing employee performance, companies not

only benefit from increased productivity and profitability but also invest in the professional

growth and development of their employees. This can result in a more engaged and motivated

workforce, ultimately reducing turnover and attracting top talent in the long run.

Feedback

One of the most popular organizational strategies for raising job happiness, promoting

learning and growth, and boosting employee performance has long been feedback (Andiola,

2014). Within a company, feedback functions as a compass, pointing staff members in the

direction of improved performance. Employees receive targeted feedback on their performance,

highlighting their strengths and areas for improvement, through an organized information

exchange. This method is about fostering growth by recognizing strengths and promoting

ongoing improvement, not merely pointing out shortcomings. It fosters a nurturing atmosphere

where workers learn about their performance and have a sense of advancement in their positions.

According to Blanchard and Johnson (2015), people who feel good about themselves are the

ones who produce good results and good results are an outcome of people’s performance. When

people have a positive self-perception, it tends to enhance their performance, thereby leading to

successful results.

Recognition

Employee recognition is defined as timely and formal or informal acknowledgment of an

individual or team’s conduct, effort, or business outcome that anchors a company’s objectives

26
and values and which were beyond usual expectations (Hedger, 2017). Employee recognition

means giving praise or appreciation to a person or a team for doing something really well at

work. It can be done formally, like in an awards ceremony, or informally, like a quick thank-you

email. It’s all about acknowledging their hard work or achievements that go above and beyond

what’s normally expected, and it helps to show how their actions align with the company’s goals

and values. Employee recognition has been identified to be a highly effective motivational

instrument, that can have a significant positive impact on employee job satisfaction and

performance as well as overall organizational performance (Rahim & Duad, 2013). Recognizing

employees for their great work is like using a super motivating tool. When you appreciate them,

it makes them happier with their jobs and they tend to work even better. This not only boosts

how happy and productive they are but also helps the whole company do better overall. It is like

a win-win situation where everyone feels good and the company does great. In addition,

according to Punke (2013), recognition programs should be balanced between performance-

based and value based initiatives, but the programs should be comprised of three methods:

formal, informal and day-to-day recognition.As individuals perform better, the combined effect

across the team or company contributes to improved overall organizational performance.

Essentially, it’s a cycle: recognition leads to satisfaction, which drives better performance,

ultimately benefiting the whole organization.

Compensation and Benefits

Milkovich and Newman (2021) found that employees who perceive their compensation

to be fair and competitive are more motivated and have higher job satisfaction, which leads to

higher levels of performance. Employee motivation and job satisfaction are significantly

influenced by perceptions of equality and fairness in compensation. A sense of equity and

27
appreciation for their contributions arises when workers feel that their pay is reasonable. This

perception fosters a positive psychological contract between the employer and the employee,

establishing a foundation of trust and commitment. Organizations that place a high value on just

and fair compensation are better positioned to attract and retain qualified workers in a

competitive labor market, which improves the standard of their workforce as a whole.

Consequently, this promotes a favorable work atmosphere since workers feel appreciated and

inspired to give their abilities and efforts to their positions. A fair and competitive compensation

has a significant impact to the employees performance. Employees that are motivated on their

work will likely boosts output and improve their performance. Compensation and benefits serves

as an inspiration for developing a strong, productive team. It makes the employees happy.

According to Mulyani et al. (2019) found that compensation is positively related to

employee motivation. Employee motivation is significantly influenced by compensation, which

also has an impact on their level of commitment, dedication, and general job engagement.

Financial compensation owes higher satisfaction to job satisfaction and employee performance

(Thapa, 2020). Employees feel valued and acknowledged when they believe their pay is in line

with their abilities, efforts, and contributions. Employees are therefore motivated to put more

time and effort into their work with a stronger feeling of purpose as a result of this appreciation.

In addition to recognizing individual efforts, a competitive and fair compensation package

upholds the concept that hard work is properly rewarded.

Job Satisfaction

Job satisfaction is “a positive feeling about a job, resulting from assessing and evaluating

its characteristics” (Robbins & Judge, 2013). Job satisfaction is essentially the positive emotion

you have about your job, which emerges from carefully looking at and judging the different

28
elements that make up your work. When you assess and evaluate aspects such as your tasks,

relationships with coworkers, the work environment, benefits, and overall fulfillment, it leads to

this feeling of contentment or satisfaction with your job. It’s like putting together a puzzle of

what makes your job enjoyable or fulfilling to you. People, who have positive feelings about

their jobs, hold a high level of job satisfaction, while People, who have negative feelings about

their jobs, hold a low level of job satisfaction (Robbins & Judge, 2013). When someone feels

good about their job, it’s because they find various aspects of it enjoyable or fulfilling. It’s like

having a collection of things at work that make them happy, such as tasks they like, great

relationships with coworkers, a good work environment, and overall fulfillment. On the other

hand, if someone feels bad about their job, it’s because they might not enjoy what they do, have

issues with coworkers or the environment, or feel unfulfilled. So, positive feelings equal high job

satisfaction, while negative feelings result in low job satisfaction—it’s all about how much joy or

contentment your job brings you.

Armstrong et al. (2014) defined Job satisfaction as “the attitudes and feelings people have

about their work”. He stated that the indication whether a person is satisfied or dissatisfied

depends on his attitude toward his job, a person who feels and think positively toward his job,

then he’s satisfied and vice versa. If someone generally feels good and positive about their job,

they’re satisfied. This satisfaction depends on their attitude if they view their job in a positive

light, they’ll likely feel satisfied. Conversely, if someone holds negative thoughts or feelings

about their job, they're likely dissatisfied. So, job satisfaction boils down to the attitude a person

has toward their work. If it’s positive, they’re satisfied; if it’s negative, they’re not.

Factors Affecting Job Satisfaction

Overall Satisfaction with Working Conditions

29
 Researchers discovered that employees who work in normal working conditions (in the

administration) are more satisfied with their working conditions than employees who work in

difficult working conditions. Employees who work in difficult working conditions are employed

at the facility (Babić, T., MBA, and Bakotić, D., PhD, 2013). Researchers found that people who

work in demanding work environments—also referred to as the facility—have much higher

overall job satisfaction than those who work in conventional work environments—also referred

to as the administration. The study findings suggest that employees in regular work

environments tend to report higher levels of job satisfaction compared to their counterparts in

challenging environments. This indicates that the working conditions have a significant influence

on the satisfaction levels of employees. Employees in regular work environments benefit from

better resources, facilities, and working conditions, which contribute to their higher job

satisfaction. This suggests that the degree of employee happiness is significantly influenced by

the working environment. Better facilities, resources, and working circumstances are available to

employees in regular work situations, which raises their level of job satisfaction. On the other

hand, workers in demanding settings could face obstacles including limited resources, lengthy

workdays, and safety risks, which could have a detrimental effect on their job satisfaction. Thus,

in order to improve employee job satisfaction, businesses must place a high priority on creating a

positive work environment.

Satisfaction with Salary

According to Salleh and Memon (2015), salary is frequently used as a tool to influence

employee behavior, hence businesses need to be able to guarantee that workers are happy with

their pay. Employees will be more driven to do well in their tasks if they are happy with their

pay. Salary is widely used as a primary tool to incentivize and inspire employee behavior. In

30
addition to ensuring that workers are happy with their pay, the company should promote a joyful

and productive work environment. Employee loyalty to the company rises when they feel

appreciated and acknowledged for their contributions, which is reflected in their pay.

31
 Chapter 3

RESEARCH METHODOLOGY

This chapter provides details regarding the research flow, encompassing the research

design, research setting, research participants, and research methodology. Additionally, it

emphasizes the tools and statistical analysis employed in the study.

Method of Research Used

This quantitative study uses a comprehensive method approach to determine the factors

affecting the employee performance and job satisfaction. The goal of the study is to pinpoint the

factors affecting the aforementioned variables. The study focuses on the management team and

personnel at the Jollibee and McDonald's organizations in Bogo City, Cebu. The study is carried

out within a company, and questionnaires are used as the main data collection tools.

Research Environment

The researcher will conduct the study at the fast-food chains in Bogo City, specifically

Jollibee and McDonald’s, with the aim to determine the factors affecting the performance and

job satisfaction of the employees. . The researcher's decision to conduct the study at the

aforementioned fast-food chains is due to the researcher's recognition of the importance of

practical experience in understanding the complexity of the fast-food industry. By focusing on

these establishments, the researcher aims to use their firsthand knowledge and insights to provide

a comprehensive analysis of the factors that affects employee performance and satisfaction.

Subject of the Study

32
 The subjects of the study are the 100 crews of both Jollibee and McDonald’s Bogo who

have undergone orientation and training. A total of 100 individuals will take part, 50 of whom

will come from McDonald's and 50 from Jollibee.

One form of questionnaire was created by the researchers and given to 100 employees of

the Jollibee McDonald's Bogo Branch. The researchers provided assistance to the respondents so

they could better comprehend the questions. The gathered information was then evaluated and

interpreted to come to a conclusion that can be utilized to make some recommendations for the

administration and operation of the chosen fast-food businesses.

Method Collecting Data and Development of the Research Instrument

The questionnaires were developed and given to the 50 employees who would be the

respondents after the researchers had obtained permission to conduct the study. The researchers

were given permission to carry out the poll, provided that working hours would not be disrupted

and that they would speak with the personnel in line with their open positions. The distribution

was set, and the survey was carried out not only to address the question of the appropriateness of

the test being administered but also as a means of introduction to improve the entire process on

the test day. Before the questionnaire was retrieved, the respondents had one day to complete it.

To better comprehend their honest and correct responses, the researchers helped some of the

respondents fill out the form. Following analysis and interpretation of the data collected,

conclusions are reached.

Sampling Design

33
 The researcher employed cluster sampling as the method of sampling. Researchers split a

population into smaller groups known as clusters in order to conduct cluster sampling. To create

a sample, they then choose at random from each of these clusters. The following will be carried

out by the researcher on the Jollibee and McDonald’s. The respondents will consist of 50

individuals from McDonald's and 50 individuals from Jollibee.

Statistical Treatment

The researchers sought permission from the Managers of McDonald's and Jollibee to

administer a survey questionnaire to their employees. In our request letter, we emphasized the

importance of the respondents' confidentiality, assured them of potential benefits from

participating, and offered respect if they chose not to participate.

To analyze the data comprehensively, we utilized frequency counts and percentages for

age and position distributions, and mean values for assessing employee performance metrics.

These researchers aim to gather information and data by conducting a survey that focuses

on understanding the factors affecting employee performance and job satisfaction in fast-food

chains. Prior to the study, the questions were thoroughly formulated and reviewed for accuracy.

34
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37
APPENDICES

38
 APPENDIX A
TRANSMITTAL LETTERS

A. Letter to the McDonald’s Management

December 1, 2023

PHILLIP ALFARO II
General Manager
McDonald’s Bogo 623
100 P. Rodriguez St, Bogo City, 6010 Cebu

Sir:

Greetings with peace and joy!

We are a 3rd Year Students taking Bachelor of Science in Business Administration in Cebu
Roosevelt Memorial Colleges. We are conducting this research titled “Factors Affecting
Employee Performance and Job Satisfaction Fast-Foods Restaurant: A Study of Jollibee and
McDonald’s in Bogo City, Cebu. We are writing to request your permission to conduct a study
within the establishments. We would also like to ask permission to use the establishment’s name
in our study.

The objective of our proposed research is to determine the factors that affects both employee’s
performance and job satisfaction. We believe that implementing this intervention in your
establishment could lead to significant improvements in your employee’s performance and help
raise elevate their job satisfaction.

Your support and collaboration are integral to the success of this intervention, and we look
forward to the possibility of contributing to the continued success of your establishment.

Sincerely yours,

KATHLYN QUINATADCAN
In behalf of all the researchers

Noted:
SHIELA L. TIROL, Ph.D.

39
 APPENDIX B
TRANSMITTAL LETTERS

A. Letter to the Jollibee Management

December 1, 2023

PHILLIP ALFARO II
General Manager
Jollibee Bogo
Central Nautical Highway, Cogon, 6010 Cebu

Sir:

Greetings with peace and joy!

We are a 3rd Year Students taking Bachelor of Science in Business Administration in Cebu
Roosevelt Memorial Colleges. We are conducting this research titled “Factors Affecting
Employee Performance and Job Satisfaction Fast-Foods Restaurant: A Study of Jollibee and
McDonald’s in Bogo City, Cebu. We are writing to request your permission to conduct a study
within the establishments. We would also like to ask permission to use the establishment’s name
in our study.

The objective of our proposed research is to determine the factors that affects both employee’s
performance and job satisfaction. We believe that implementing this intervention in your
establishment could lead to significant improvements in your employee’s performance and help
raise elevate their job satisfaction.

Your support and collaboration are integral to the success of this intervention, and we look
forward to the possibility of contributing to the continued success of your establishment.

Sincerely yours,

KATHLYN QUINATADCAN
In behalf of all the researchers

Noted:
SHIELA L. TIROL, Ph.D.

40
 APPENDIX B

RESEARCH INSTRUMENT

Factors Affecting Employee Performance and Job Satisfaction of Fast-Food Chains: A

Study of Jollibee and McDonald’s in Bogo City
This survey is designed to collect data for the purpose of investigating the factors
affecting employee performance and job satisfaction of fast-food chains in Bogo City
specifically Jollibee and McDonald’s. The researchers kindly request your participation in
answering the following questions. Rest assured, the information you provide will be used
exclusively for research purposes and will be held in strict confidence.
Should you have any inquiries or require clarification about the survey, please feel free to
reach out to the researchers at kathyquinatadcan18@gmail.com, marygracetero12@gmail.com,
djhennieghene@gmail.com, cyrenepunay9@gmail.com, lumapas.lynb@gmail.com, and
dablokathleen@gmail.com. We are here to assist you.
Your valuable contribution and support in this endeavor are greatly appreciated. Thank
you in advance for your participation.

I. Respondent’s Profile. Please check the appropriate circle.

Name: ___________________________ Age: ______ Position:______________

II. The study was conducted using a questionnaire. 100 employees of the selected fast-food
restaurants filled it out. The topic of the survey was job satisfaction among employees. Workers
in the firm under study are requested to answer 10 statements that depict their level of employee
performance and job satisfaction. Table 1 displayed the list of these statements. Workers were
expected to rate these claims using a Likert-type scale (1932) in which 1 represented "strongly
disagree," 2 represented "I disagree," 3 represented "I agree," and 4 represented "I strongly
agree."

Please carefully read each question on the questionnaire and choose only one answer
when you fill it out. Your participation is greatly appreciated, and the information you submit
will only be used for study.

The researcher appreciates your time and patience, and your opinions are valued. A list of
statements regarding your general feelings about yourself is provided below. Please tick the
relevant box next to each statement to indicate how much you agree or disagree with it.

Table 1: Level and Description of Scale

41
Rating Scale Level
4 Strongly Agree
3 Agree
2 Disagree
1 Strongly Disagree
Description
You strongly believe that this statement accurately
describes your performance and job satisfaction
when it comes to work.
You agree with the statement to some extent,
indicating that it partially reflects your
performance and job satisfaction when it comes to
work.
You do not agree with the statement and feel that it
does not represent your performance and job
satisfaction when it comes to work.
You strongly believe that this statement does not
apply to you in the context of your performance
and job satisfaction.
42
Table 2: Respondent’s Level of Performance

EMPLOYEE PERFORMANCE
1 2 3 4
QUESTIONNAIRE

1. My salary is based on my performance.

2. I will perform well if am promoted.

3. Satisfaction has to do with my performance

on my job.

4. Communication is most important in

employees performance.

5. Performance and attitude helps towards

achieving organizational goals.

6. I am clear about what I need to do and how

my job performance will be evaluated.

7. I perform well if I am given the

opportunity to.

8. I am satisfied with communication

between the staffs and management.

9. Training and development is important if

workers must perform well

10. The location of my job is convenient.

43
Table 3: Respondent’s Level of Job Satisfaction

JOB SATISFACTION
1 2 3 4
QUESTIONNAIRE

1. Form of employment is satisfying.

2. Current level of salary is satisfying.

3. Physical working conditions in the

company are satisfying.

4. I think my relationship with my managers

are appropriate.

5. My direct supervisor knows my job well.

6. Atmosphere in the company is friendly.

7. The level of employment stability in the

company is satisfying.

8. Way of promotion of employees is

appropriate.

9. I did not observe or I did not experience

discrimination.

10. I have a feeling that I am a part of the

company.

44
45