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Chapter II


This chapter places the current study into the context of previous, related
research. It consist of both the theoretical and conceptual framework of the present
study, the critique of both related studies and literature that are related to the
present study, as well as the operational definition of terms that are based on
observable characteristics and how it is used in the study.

Theoretical Framework

Theoretical Framework is a separate chapter consisting of a review of related
literature, the theories that have bearing the problem, the conceptual framework
and the hypothesis.

The study is focused on the System Theory, which states that, "A System
refers to any collection or combination of programs, procedures data and equipment
utilized in processing information". A system is mainly made up of three
components that represent the units of analysis or the variables under study. As the
result of the study, it represents Input as the Independent Variable (IV), the Process,
as the Intervening Variable (ITV), and the Output as the Dependent Variable (DV).

The upper portion of the paradigm (shown on Figure 2.0) clearly illustrates
how the existing system will be processed. The materials used in the traditional
method, which is a manual way of recording files using the pen, pencils, papers and
columnar notebooks serves as the input; and the manager being able to get the
incoming files of the clients serves as the output.
The lower portion of the paradigm illustrates how the proposed system will be
processed. It illustrates the new method of recording files through the use of a
computer, which serves as the input; the process is automated and is therefore
faster, more efficient and easier to work with. The manager can now get the
recorded files faster by inputting the records.

Related Literature

This section presents both foreign and local related literatures relevant to the
study. This relevance is shown by the proponents in order to give more reason and
understanding of the proposition.

Tom DeMarco & Tim Lister of Peopleware, 2nd Edition, Dorset House (1:58)
cited that:

"Companies that sensibly manage their
investment in people will prosper in the
long run"

The authors of the book state that if companies manage investment in people
wisely, it will reap the rewards in the future as the company grows. It will succeed in
the long run because the people within the company are the ones contributing to
the growth of the company. Thus entails the importance of taking care of the people
within the company.

Caper Jones of A Practitioners Approach, Fifth Edition (2:114) cited that:

"Good estimating approaches and solid
historical data offer the best hope that
reality will win over impossible demands."
The author of the book stated that in business, good estimating approaches
and solid historical data are beneficial tools to be taken advantage of. As to with
research studies, one does not jump to start right away, but the approach should
start with solid historical data so that awareness of the study be met with a hopeful
result that will win over impossible demands.

Carl P. Zeithami & Thomas S. Bateman of Management Function and Strategy
(3:139) cited that:

"In today's business environment,
planning has become a widespread
management function, involving people
throughout the organization in the
analysis, identification, and selection of
goals and priorities."

Authors of the book state that planning is very important for every individual,
work group, or organization because it helps the systematic process during which
decisions are made about the goals and activities, just like companies using a
manual system method to carefully plan on what would be the possible solution to
make the system work faster so that there is less probability of errors in the
activities, and in considering the need for a computerized system in order to better
answer the problem.

Related Studies

This section presents other related studies by the people who conducted
studies similar to the proponents that will also greatly help in the progress of the
study. And it will also help the understanding of the proposition.

Mark Dominic dela Torre (4:1) stated that:

"The concepts of a simple dream, a
determination, quality and perseverance
are the forefront to any business that
leads to successful outcome."

Having the concept of determination and assuring quality service to
customers, the proponents created an online software program to cater to company
employees in making their job more efficient thus delivering quality service and
determining a successful business.

Gaudelyn C. Pantilo (5:1) stated that:

"The increasing demand gave us the idea
how to deal with our ongoing progress. It
motivates us to meet their need

The company needs to continually diversify to meet the ongoing demands of
the business sectors today. Thus, proponents created an online software program
for the company to have a more efficient work force, easily manage all its
transactions and to meet the demands of this ever changing economy.

Kneener Lim and Antonette Goyenechea (6:2) stated that:

"Records security is also one of the
primary objectives and all the information
received from its clients are confidential."

The proponents created and designed a software program for the company to
make the system perfect where all the records should be kept, thus giving the
assurance that these files are secured and accessible for the advancement of the

The caption that is stated on the related studies by Kneener Lim and
Antonette Goyenechea and the studies that were conducted are related to the
proponents' study because these studies are concerned with the records system of
the company. Both studies are related in the area of the importance in keeping all
the records and files of the clients of a company and putting into account solid
historical data of the company that could be used to further improve the company’s
growth in the future. It will give the assurance that these files are secured and
accessible for the advancement of the company. It also guarantees that people’s job
will be easier, faster and more efficient for the benefit of the company.

Definition of Terms

The following terms below are used verbosely during the study.

Operational Terms

The definition of terms are based on observable characteristics and how it is used in
the study.

Client. A person that can receive services from the employees and agents.

Company. A business enterprise firm.

Employee. A person employed at a wage or salary.

File. A receptacle that keeps loose objects such as papers or any collection of

Manager. A person that manages a business.

Record. A document that contains an account particularly in terms of

Services. Non-monetary programs provided by companies that benefits
Conceptual Terms

The definitions of terms are based on concepts or hypothetic ones, which are
usually taken from the dictionary.

Automated. The conversion of the process of automation has been already

Computer System. The configuration that includes all functional
components of computer and its associated hardware or software.

Database. An integrated collection of data which provides a more efficient
way of storage and retrieval of data and is capable of processing large portions of
data immediately.

Information. Is data that has been changed into a useful form of output.

Process. A series of actions, changes, of functions that bring about an end or
a result.

Software. A computer terminology use to describe the unseen programming
codes and running application inside the computer system.

System. A set of related components that produces specific results.

Technology. It is the study of practical or industrial arts.

Technological Advancement. A technical advancement or progress
resulting to a development of another technology.
Chapter III

This chapter deals with the methods of research used whether it may be
historical, descriptive, and experimental or a case study. The techniques used under
Descriptive Research Method as well as the data gathering tools and analytical tools
used will be further explained in this chapter as well as the methods used in
developing the software and for evaluation.


Methods of Research Used

The proponents have used the Descriptive Research Method wherein the
study is focused on present situations. It involves the recording, description,
analysis and the presentation of the present system, composition or processes of

Under the Descriptive Research Method, the technique used is the Survey
Method, which is otherwise known as normative survey. The results and findings of
the study should always be compared with the standards. With the survey method,
researchers are able to statistically study the specific areas where the proponents
must concentrate. Findings regarding the common practices being done and the
methods which are commonly adopted by the employees are obtained with the use
of the survey method.


The respondents of the study include the employees wherein the proponents
prepare a set of carefully prepared and logically ordered questions. This respondent
focuses on the company’s employees for they are very important in a sense that
this study is all about them. (See Table 1.)

Table 1.0

Respondents Distribution

N = 86

Position / Status Population Sample

Managers 18 8

Staff 12 6

Agents 56 18

Total 86 32
The questionnaires are being answered accordingly to the priority of concern
by using predetermined sets of questions with predefined ranges of answers so as
to avoid any conflicting series of response.

Sampling Design and Technique

Sampling may be defined as measuring a small portion of something and
then making a general statement about the whole thing. It enables the study of a
large, heterogeneous population more economic wise, meaning not too costly, and
more realistic and possible to make. The population to be researched upon is quite
small; hence scientific sampling is implied to each member of the population since
the number of population is attainable for sampling. The proponents decided to use
the unstructured random sampling technique since the population is well in the
reach of statistical evaluation.

To justify the point, the use of Sloven’s Formula was utilized in the formula of:

n = N / 1 + N (e)2


n = sample size

N = total population

e = level of confidence (.01 to .05)

Data Gathering Tools

These are the instruments or tools for gathering data in research used as
basis for drawing conclusions or making inferences. Some of these tools are
questionnaires, interviews, empirical observations, research and analysis used by
the proponents as they conduct the proposed study.

Interview. An Interview is defined as a meeting of two people face to face to
confer about something or an act of questioning to receive a desired answer that is
necessary in solving a specific problem. This is where data gathering occurs by
asking questions for much needed information from the interviewee verbally and

Observation. This technique is used when the researcher cannot secure
adequate or valid data through the use of the questionnaire or some other
technique. It is considered to be the most direct means of studying people in so far
as their overt behavior is concerned. Observation of a current operating procedure
is another data gathering tool seeing the system in action gives you additional
perspective and better understanding of system procedures.

Research. Research is simply, the systematic search for pertinent
information on a specific topic or problem. It is systematic study or investigation or
something for the purpose of answering questions posed by the researcher. It
includes reviewing journals, periodicals, and books to obtain background
information, technical material, and news about industry trends and developments.

Questionnaire. A pre-written series of questions used in gathering
important information’s from one or more persons. This will be given to the
individual who have a direct bearing of the study and in order to satisfy the
proponent’s goal that is to get and measure the opinions, polls and attitude of the
respondents of the study.

Analysis. Analysis is the process of breaking-up the whole study into its
constituent parts of the categories according to the specific questions under the
statement of the problem. This is to bring out into focus the essential feature of the

Statistical Tools

Statistics is one way of getting the information’s organized. To have a general
view of the whole scenario of the study, statistical tool is used. This also includes
the scaling system, which is used by the proponents as a technique to monitor the
respondent’s interpretation of facts. (See Table 2.0 & Table 3.0)
Table 2.0

Scaling Systems of the Existing System and
Proposed System

Rating Scale Interpretation

5 Excellent

4 Very Good

3 Good

2 Fair

1 Poor

Table 3.0

Scaling Systems of Problems Encountered in the
Existing System

Rating Scale Interpretation

5 Strongly Agree

4 Agree

3 Undecided

2 Disagree

1 Strongly Disagree

Below are the Formulas used to arrive to the computation used by the Statistical

1) Frequency Distribution = n / T * 100%


n = Number of respondents in a single gender classification

T = Total number of respondents including all the gender classification
2) Mean() = F(X1 + X2 + …… Xn) / n


F = Frequency that a given X was chosen by the respondents

X = Represents any of the numerical ratings 5, 4, 3, 2, 1 represents,
excellent, very good, good, fair, poor

n = Total number of respondents

3) Weighted mean(x) = f(X1 + X2 + …… Xm)n / N


n = Total numbers of criteria


T = Computed + Value

Xp = Overall rating for proposed system

Xe = Overall rating for existing system

Np and Ne = Degree of Freedom

4) CBA(Cost Benefit Analysis) P = F / (1 + l) n


P = Present Value
F = Total Savings

l = Bank Interest Rate

n = Number of Years


Analytical Tools

The analytical tools used in conducting the proposed study are the System
flowchart, IPO (Input Process Output) and HIPO (Hierarchical Input-Process-Output),
which are precisely discussed in this section for the development of the system.

System Flowchart. It is formalized graphic representation of a program
logic sequence, work or manufacturing process, organizing chart, or similar
formalized structure.

IPO or the Input Process Output. These are the components or elements
that make up the system. It is also described as tools on the design of the entire

HIPO or Hierarchical Input-Process-Output. A high-level view of the
functions performed by a system as its functions and software implementation.

Data Flow Diagram. This is a graphic illustration that shows the flow of data
and logic within the system.

Context Diagram. This is an overview of the organizational system that
shows the system boundary, external entities that interact with the system, and the
major information flows between the entities and the system.

Methods Used in Developing the Software

At this point, the work of the system analyst will be tested to its fullest ability.
This is the part where the system analyst must be able to determine and explain the
methods that will be used throughout the entire project. Software Development is a
tedious task not only for the programmer but also for the system analyst, because
they will decide on the type, size and creativeness of the system. At this juncture,
the methods used in developing the software must be explained and defined. The
following are the system development methods, namely, software planning,
software analysis, software design, software testing and software implementation.

Software Planning. This software development method designates a plan in
which a system analyst must first identify. Identify meaning, to identify the product
goals and requirement of the system. System analyst must also put into
consideration the capabilities of the programmer before deciding the product itself.

Software Analysis. It can be considered as the most difficult phase because
in this phase raw materials or information’s must first examine thoroughly before
converting it into a software design.

Software Design. Design is a visualization of the outcome of a product but
then in software design phase, time is very essential because designing software is
not an overnight job. It takes a long period of time to ensure efficiency,
maintainability and reliability if the software.

Software Testing. A stage or phase where the proposed system will be
given to a panel of critics and end-users for testing. In this way, the developer can
determine the response of the user whether the system works or not.

Software Implementation. The phase of the software development method
where software has already been debugged documented and tested. The objective
of the implementation phase is to deliver a completely functioning and documented
information system.

Software Operation and Maintenance. Maintenance keeps the system
functional at an acceptable level, correct errors and adapts changes in the new
environment to provide new features and benefits.

Methods Used for Product Evaluation
This part consists of the methods used in evaluating the proposed system in
terms of accuracy, efficiency, reliability, speed, portability and user friendliness
which lead to the integrity of the proposed system.

Technical Feasibility. The proposed system is technically flexible since
computerization of the existing data is possible and the components needed for the
system are widely sold in the market.

Market Feasibility. The proposed system of the proponents is market
feasible since the respondents will be able to save time in tallying and recording the
files of clients. They will also be able to save time and money by not purchasing a
lot of papers for paper works and documentations.

CBA (Cost Benefit Analysis). This estimates and totals up the equivalent
money value of the benefits and costs to the community about whatever projects to
establish are worthwhile. Evaluating hardware and software, identifying and
forecasting cost and benefits and performing cost benefit analysis are all necessary
activities the system analyst must accomplish in preparing material for the systems

Operational Feasibility

To determine if the proposed system is operationally feasible to apply or
implement. Below are the given criteria, which serve as a basis to test the proposed
system if it really works.

Accuracy. The ability to be precise and avoid errors and the correctness or
truthfulness of something especially in the mathematical computation of sales so
that the business will not suffer from any losses.
Efficiency. The ability to do something well or achieve a desired result
without wasted energy or effort, or the degree to which this ability is used in the

Reliability. The ability to be trusted to do what is expected or has been
promised. The ability to be trusted, to be accurate or correct to provide result.

Speed. To reach the maximum or desirable rate of movement or progress. To
be or become fully informed about the latest developments, to accomplish things in
a manner that consumes less time. Speed is the main concern of the proponents so
that the proposed system will be implemented successfully. In using computer
based program and the idea of automation, speed requirement should be satisfied.

User-Friendliness. Understandable software applications. Easy access and
easy to use Windows based system.

Portability. The ability to transfer software application to another computer.
The proposed system is hosted online so that users can easily access the system
wherever they are as long as there is internet access.