GROUP 1

Case Study about

“Cebu Pacific’s
Unsatisfied
Employees”
GROUP MEMBERS
Adi, Ma. Vennah Kharmela
Aguila, Kyla May
Almonia, Jefferson
Amad, Kenneth Angel
Balila, John Paul
Barretto, Kristina Isis
Bernales, Klaribelle
Borlagdan, Jayson
BSBA MM 1-2N
TABLE OF CONTENTS
Objectives ………………………………………………………………………….…….................……1

Introduction ………………………………………………………………………..…................…..…..2

Background of the Study …………………………………………………………............…….…….2

Statement of the Problem…………………………………………………………..…….........……..4

Analysis of the problem ……………………………………………………………...…..........……...5

Conclusion ………………………………………………………………………………....................…..6

Recommendation ………………………………………………………………………...............….…6

Appendices ………………………………………………………………………..................…………...7

Reference ……………………………………………………………………….................…………......9
• Objectives:
• To identify company’s leading issue and its effect to
the employee
• To give broad knowledge to the respondents about
the leading issue of Cebu Pacific
• To improve oneself particularly awareness on the
different issues of Cebu Pacific
• To give possible recommendations to the
management and heads of the Cebu Pacific
• To identify the advantages and disadvantages as an
employee of Cebu Pacific
• To assess the Satisfaction Rates of the Employees
from the previous years to recent years.
Introduction
Cebu Pacific Air is the largest domestic airline company that provides
both domestic and international flights in the Philippines. The company
was established in August 1988 and had begun operating in March 1996.
With their parent company, JG Summit, it ranked third in Asia in terms of
largest low cost Airline. The airline currently offers flights to 37 Philippine
and 26 international destinations, spanning Asia, Australia, the Middle
East, and USA. It is also known for their slogan, “Now, everybody can fly,”
Cebu Pacific gave their consumers a promise to give low costs but great
value.
This study focuses on the concerns of Cebu Pacific employees and what is
leading them to resign and apply to higher paying companies. The main
issues are; their salary does not compensate for the work overload, unfair
treatment, and overlooked procedures in promoting or hiring employees.
Workers also demand equal amount of salary for the amount of work
they exerted therefore, they happen to leave and work for international
carriers that double their usual pay. This paper aims to resolve the timely
problem of Cebu Pacific by investing primarily in human capital.
Background of the Study
Maslow’s need of Hierarchy suggest that a man needs a five – level hierarchy
consisting psychological needs, safety, belongingness/ love, esteem and self –
actualization. Psychological needs like hunger, thirst, shelter, sex and other bodily
needs are the ones needed by the employee. Safety includes the security and
protection from the different harm. Social refers to the belongingness, acceptance
and friendship. Esteem, this stage suggests that person must have self - respect,
autonomy, achievement, recognition, and attention. Lastly, the self-actualization –
this is the stage wherein a person is capable of becoming that includes growth,
maturity and self-fulfillment. These needs must be satisfied before an individual
before an individual can proceed to the next level.
This theory explained human motivational in general and it is also applicable to the
work setting. This has been used to explain job satisfaction. Maslow’s theory is
widely used in psychology to motivate or satisfy the needs of a person. In relation
to this study, Cebu Pacific is currently suffering from unsatisfied employees that
drive them to switch in other airlines. This issue occurs with so many omission of
the company.
Stogdill theory is about the satisfaction of not only one employee but as a whole
organization or group.
One employee satisfaction shouldn't be viewed as the "causer" of a job
performance. The satisfaction in this theory is about how it results to job integration
and cohesiveness, not always production in organization. Although production and
morale are also functions of a group structure, satisfaction improves work
environment and relation to coworkers.
This theory relates to our study of how important it is to improve morale, work
ethics and relation to have a good working environment therefore resulting to more
productive and satisfied employees.
According to Catalina Ricci S. Madarang May 4, 2018, The president’s signing of an
executive order as thousands of labor groups protested on May 1 failed to appease
workers’ woes to end contractualization in the country. Contractualization is one of
the reason why employees often to act lazy when the contract period is about to
end.
Asiapro said that, Contractualization refers to the practice of hiring employees who
would render their services for a finite amount of time, usually, for a few months
only. This is a system that has been practiced and used by many companies,
including large corporations. These enterprises often utilize this arrangement in
order to maintain their revenues up. Airline staffs and many more are not all
permanent on that certain job. This may also be one of the reason why poor
customer service is rendered by employees who are expected to end by a specific
date because of the lost of their interest.
• Statement of the Problem
• Recently, Cebu Pacific is facing unsatisfied employees that cause
them so leave for a higher paying airline company. The unsatisfied
employees cause the cancellation of Cebu Pacific flights, technical
problems, and operational outrages. Flight crews are transferring
to higher-paying airlines which also offers more benefits and
incentives which shows that salaries and benefits plays an
important role in the efficiency of an employee. Another problem
that Cebu Pacific is facing is the high number of employees that
are going on leave resulting to the remaining employees to be
overworked. These problems cause inefficiency in their work
environment.
• Analysis of the Problem
•
• Cebu Pacific is known for it is affordable and “reliable” mode of aerial
travel transportation.
• The researchers averaged the employee satisfaction rate in various sites in
the previous years the employee satisfaction rate was 4.3 out of 5. Some
of the comments that came with such high ratings were because of the
benefits such as “free flights”, Medicine allowances, Friendly environment,
a lot of training programs and company outings, great working
environment.
• This year (2019) they faced an issue about Cebu Pacific’s employees
leaving or resigning for a high paying airline due to different reasons.
• The researchers summed up employees’ and former employees’
comments and ratings from various sites that contain similar concerns
such as the following: Unfair treatment of management, Unfair scheduling
of tasks, Low salary, Salary does not compensate workload, Promotions
are rarely given or “doesn’t exist and operational outrages.
• The mentioned concerns caused the employees to give poor ratings and
feedback in which resulted the employees resigning or transferring to
another airline company. In terms of employee relation to higher
management the employees who rated and commented on their working
experience with Cebu Pacific are unsatisfied, overworked and find the
management “unfair”. In terms of salary they commented that their salary
is “low” compared to international airline companies