IMPORTANCE OF MENTAL WELLBEING

ON EMPLOYEE PERFORMANCE IN
SAN PABLO CITY, LAGUNA

A Research
Presented to the College of Business Administration in Pamantasan ng Lungsod
ng San Pablo

In Partial Fulfillment of the Requirements of the Degree Bachelor of Science in

Office Administration

Dimayuga Charlie
De Castro jenny
Montances Mariz
Cueto Althea
 TABLE OF CONTENTS

TITLE PAGE i

APPROVAL SHEET ii

ACKNOWLEDGEMENT iii

TABLE OF CONTENTS v

LIST OF TABLES vii

LIST OF FIGURES viii

ABSTRACT ix

I. THE PROBLEM AND ITS BACKGROUND 1

Introduction 1

Statement of the Problem 3

Hypotheses or Assumptions 4

Theoretical Framework 5

Conceptual Paradigm 7

Significance of the Study 8

Scope and Limitations of the Study 9

Definition of Terms 10

REVIEW OF LITERATURE 11

Conceptual Literature 11

Research Literature 16

Synthesis of Review of Related Literature 25

 CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

This chapter deals with the presentation of the problem. Specifically, this

presents an introduction, the background of the study, statement of the problem,

theoretical framework, conceptual framework, hypothesis of the study, scope and

limitations of the study, significance of the study, and definition of terms.

Background of the Study

In modern-day workplaces around the world, including the Philippines,

mental wellbeing has surged to the forefront of organizational agendas. This shift

reflects a growing recognition of the deep impact that mental health has on

employee performance, productivity, and overall organizational success.

Employers are realizing that prioritizing the mental wellbeing of their workforce

isn't just a moral imperative but also a strategic investment in the long-term

sustainability and competitiveness of their businesses.

San Pablo Laguna is one of main city with the growing industries that may

have challenge of promoting mental wellbeing among employees while

maintaining productivity and profitability. Despite growing awareness, there

remains a gap in understanding the specific relationship between mental

wellbeing and employee performance in the environment of San Pablo, Laguna.

The importance of mental well-being in the workplace has garnered

increasing attention worldwide, as organizations recognize its profound impact on

employee performance, job satisfaction, and overall organizational success. In

San Pablo, Laguna, this issue is particularly significant, as businesses navigate

the difficulties of a rapidly changing economic landscape while striving to

maintain a healthy and motivated workforce.

Despite the growing awareness of the significance of mental health in the

workplace, there remains a lack of comprehensive research specifically

addressing the relationship between mental well-being and employee

performance in the businesses at San Pablo, Laguna. This gap in knowledge

presents an opportunity for examination and investigation, as understanding the

dynamics of this relationship is essential for the development of effective

strategies and interventions to support both employees and organizations in the

region.
Statement of the Problem

The lack of comprehensive research on the importance of mental

wellbeing on employee performance specifically in San Pablo, Laguna, presents

a significant gap in knowledge.

Understanding the extent to which mental wellbeing influences employee

performance and identifying factors that contribute to or detract from mental

wellbeing are crucial for organizational success and employee satisfaction in this

region.

Therefore, this study seeks to investigate the correlation between mental

wellbeing and employee performance among workers in San Pablo, Laguna, and

analyze it through questions.

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

1.1. Age;

1.2. Sex

1.3. Position in the company

2. How long they have been in the company and how many working hours they

have within the day.

2.1. Part time; and

2.2. Full Time

3. Are they breadwinner in the family?

 3.1. As a parent

3.2. Not as a parent

4. How many Leaves they have in the company per year?

4.1. Sick Leave

4.2. Vacation Leave

5. Is there any significant effect if you travel within a year on your mental health

or you prefer being at home?

5.1. Leave Credits

5.2. Holidays

Hypothesis

This study aimed to identify the mental well-being of employees around

San Pablo Laguna, while analyzing the reasons of their stay in the company. The

null hypothesis is that, there is big significant effect between mental wellbeing of

an employee on their performance as well as retention rate of the company.

Conceptual Paradigm

In accordance with the availability of resources, respondents, and length

of time conducting the research, this research study focuses on the Mental Sate

Wellbeing of employees around San Pablo City Laguna Philippines.

Figure 1. The Research Paradigm

Independent
Dependent Variable
Variable

Perceptions in printed and

Mental books
electronic State wellbeing
in terms of
of:
Employees in the area
 Ease of Use

 Usefulness

Theoretical Framework

"Mindfulness is about being fully present and engaged in the moment, free

from distraction or judgment, and aware of our thoughts and feelings without

getting caught up in them." Mindfulness at Work: How to Avoid Stress, Achieve

More, and Enjoy Life!" by Stephen McKenzie and Craig Hasse.

 In the study of Stone R.I and Bryan N.S (2019), they offer valuable insights

into the mental health of employees across different industries and organizational

contexts, highlighting the prevalence, predictors, and consequences of mental

health issues in the workplace. And they said that “Mental health difficulties, such

as depression and anxiety, were significantly associated with lower levels of job

satisfaction among home healthcare workers, underscoring the need for treated

interventions to support the psychological well-being of employees in this sector."

This concludes that mental state of an employee highly affect also the

company’s performance in terms of output and human resource retention.

Significance of the Study

The purpose of this study is to know the mental state wellbeing of

employees around San Pablo City Laguna. Furthermore, the result of this study

is significant to the following group:

To the employess. This study aims to provide employees knowledge how they

mental being status affect their job performance.

To the professors. This study will benefit professors and administrators they are

also an employee who maybe in the same situation like the respondents.

To the Company respondents. This study will assist the companies to know

whether appropriate actions or recommendations are needed to determine

whether an employee is performing less or more due to their mental state.

To the future researchers. This study will serve as an informative material for

future researchers who will conduct studies related to Mental Health Awareness.

Scope and Limitations of the Study

This study is conducted to obtain relevant information on the Importance

of Mental Wellbeing on Employee Performance in San Pablo Laguna. The

collection of data will be conducted from the whole selected companies and

employees with different positions, age and gender.

The findings of this study will be applicable only to the respondents of this

study and will not be used to assess The Importance of Mental Wellbeing on

Employee Performance in San Pablo Laguna as a whole. The questionnaire and

interview questions that the researchers have created will serve as the primary

source of data.

Definition of Terms

This section provides definitions for terminology essential to the

understanding of this study. The following items are frequently used throughout

this study and can be understood using the corresponding definitions:

 Mental Wellbeing - The World Health Organization (2004) defines mental

health in the following way: It is a state of wellbeing, in which the individual

realizes their abilities, can cope with the normal stresses of life, can work

productively and fruitfully, and can contribute to their community

Other terms that might be used in the literature include positive mental

health, mental capital, and wellbeing, which can be psychological, mental, or

subjective (de Cates, Stranges, Blake, & Weich, 2015)

Job Performance - Job performance refers to the effectiveness with

which an individual carries out the duties and responsibilities associated with

their job role within an organization. It encompasses the quality and quantity of

work produced, as well as the efficiency and effectiveness with which tasks are

completed. Job performance can be evaluated based on various criteria,

including specific job-related goals and objectives, key performance indicators

(KPIs), and organizational expectations

 CHAPTER II

REVIEW OF RELATED LITERATURE

Conceptual Literature

In every work organization, employee’s mental wellbeing is one of the

most basic issue nowadays with regards to performance and retention of the

company. The more positive mental state, shows the high result on job

performance and, and the better results will be achieved. However, the results of

the study about “The Impact of Mental Health on Job Performance: A Study

Among Teachers in Malaysia” by Lim, L. L., Chan, S. W. J., & Lee, L. H found a

significant association between mental health status and job performance among

teachers. Employees experiencing higher levels of psychological distress,

including symptoms of anxiety and depression, reported lower levels of job

performance.

Job satisfaction emerged as a mediating factor in the relationship between

mental health and job performance. Employees with better mental health were

more likely to report higher levels of job satisfaction, which, in turn, positively

influenced their self-perceived job performance.

 The study also revealed that employees with better mental health

exhibited higher levels of work engagement and organizational commitment.

They demonstrated greater enthusiasm, dedication, and involvement in their

work roles, contributing to overall job performance

Research Literature

This provides a comprehensive overview of existing research on the

relationship between mental wellbeing and employee performance, with a focus

on the context of San Pablo Laguna, Philippines. This review synthesizes

empirical studies, theoretical frameworks, and practical insights to inform the

conceptualization and understanding of this crucial relationship.

Mental Wellbeing in the Workplace: Numerous studies have highlighted the

significance of mental wellbeing in the workplace, emphasizing its impact on

employee engagement, job satisfaction, and overall organizational effectiveness.

Research by Johnson et al. (2018) demonstrates that employees with higher

levels of mental wellbeing exhibit greater resilience, creativity, and job

performance. Similarly, the PERMA model proposed by Seligman (2011)

underscores the importance of positive emotions, engagement, relationships,

meaning, and accomplishment in fostering psychological wellbeing and

enhancing work-related outcomes.

 In the study of "Workplace Stress, Burnout, and Well-Being: A Multi-Study

Investigation of the Patterns and Predictors of Employee Outcomes" by Leiter, M.

P., & Maslach, C, it examines into the elaborate relationship between workplace

stress, burnout, and employee well-being across multiple studies. It also provides

valuable insights into the complex dynamics of workplace stress and burnout and

their implications for employee well-being and organizational effectiveness. By

identifying key predictors and consequences of stress and burnout, the study

informs evidence-based interventions and organizational practices aimed at

promoting employee well-being and fostering a healthy work environment.

Employee Performance: Employee performance is a multifaceted construct

encompassing various dimensions such as task performance, creativity,

innovation, and organizational citizenship behaviors (OCBs). Studies by Bakker

and Demerouti (2017) and Podsakoff et al. (2009) emphasize the role of job

resources, work engagement, and psychological capital in driving employee

performance. Additionally, research conducted by Luthans et al. (2007) highlights

the positive association between psychological wellbeing and individual

performance outcomes, underscoring the importance of addressing employees'

mental health needs to optimize organizational performance. In the "The

Relationship Between Engagement at Work and Organizational Outcomes" by

Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002) the meta-analysis examines
the relationship between employee engagement and various organizational

outcomes, including productivity, profitability, and customer satisfaction. It

highlights the positive impact of engagement on employee performance and

organizational success. The study found a strong positive correlation between

employee engagement and productivity. Engaged employees were more likely to

demonstrate higher levels of performance, efficiency, and quality in their work

tasks.

The Relationship between Mental Wellbeing and Employee

Performance: Evidence suggests a strong positive correlation between mental

wellbeing and employee performance. A study by Robertson and Cooper (2011)

found that organizations investing in employee wellbeing programs experienced

higher levels of job satisfaction, reduced absenteeism, and improved productivity.

Moreover, research conducted by Zhou et al. (2018) revealed that employees

with higher levels of psychological wellbeing demonstrated greater job

performance and job satisfaction, emphasizing the importance of fostering a

supportive work environment conducive to employee wellbeing. In the research

study titled "The Impact of Mental Health on Job Performance: A Study Among

Teachers in Malaysia," authored by Lim, L. L., Chan, S. W. J., & Lee, L. H.,

investigates the influence of mental health on job performance among teachers

in Malaysia.The study found a significant association between mental health

status and job performance among teachers. Teachers experiencing higher

levels of psychological distress, including symptoms of anxiety and depression,

reported lower levels of job performance. Job satisfaction emerged as a

mediating factor in the relationship between mental health and job performance.

Teachers with better mental health were more likely to report higher levels of job

satisfaction, which, in turn, positively influenced their self-perceived job

performance. The study also revealed that teachers with better mental health

exhibited higher levels of work engagement and organizational commitment.

They demonstrated greater enthusiasm, dedication, and involvement in their

work roles, contributing to overall job performance.

The Companies around San Pablo Laguna, Philippines: While

research on mental wellbeing and employee performance is abundant in global

contexts, limited studies have specifically focused on the San Pablo Laguna

region of the Philippines. However, cultural factors, societal norms, and

organizational practices unique to the Philippines may influence the relationship

between mental wellbeing and employee performance in this context. Further

research is needed to explore the cultural nuances and contextual factors

shaping the mental health and performance of employees in San Pablo Laguna,

providing valuable insights for organizational leaders and policymaker. This

review of related literature highlights the critical role of mental wellbeing in

influencing employee performance in the workplace. Drawing upon theoretical

frameworks and empirical evidence, this review underscores the importance of

fostering a supportive work environment that promotes employee wellbeing and

enhances organizational outcomes. Future research in the context of San Pablo

Laguna, Philippines, has the potential to generate valuable insights and inform

evidence-based interventions to promote mental wellbeing and optimize

employee performance in the region.

Synthesis of Review of Related Literature

In this research it indicates a notable prevalence of mental health issues

among employees in San Pablo City, Laguna. Factors such as work-related

stress, socio-economic challenges, and cultural influences contribute to the

occurrence of psychological distress, including anxiety, depression, and burnout,

among the workforce. Studies suggest that mental wellbeing significantly

influences employee performance in San Pablo City, Laguna. Employees

experiencing higher levels of psychological wellbeing demonstrate greater job

satisfaction, engagement, and productivity. Conversely, poor mental health

negatively affects job performance, leading to absenteeism, presentism, and

reduced effectiveness in work tasks. It also suggest that mental wellbeing

significantly influences employee performance in San Pablo City, Laguna.

Employees experiencing higher levels of psychological wellbeing demonstrate

greater job satisfaction, engagement, and productivity. Conversely, poor mental

health negatively affects job performance, leading to absenteeism, presentism,

and reduced effectiveness in work tasks. Several mediating factors influence the

relationship between mental wellbeing and employee performance in San Pablo

City, Laguna. These include organizational support, leadership effectiveness,

work-life balance initiatives, and access to mental health resources. Supportive

work environments and proactive management practices play a crucial role in

promoting employee wellbeing and enhancing performance outcomes. The

literature underscores the organizational implications of prioritizing mental

wellbeing in San Pablo City, Laguna. Employers are encouraged to implement

holistic wellness programs, employee assistance services, and mental health

awareness campaigns to address the needs of their workforce. By investing in

employee wellbeing, organizations can improve job satisfaction, retention rates,

and overall organizational performance.