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CHAPTER 1 THE PROBLEM AND ITS BACKGROUND Introduction Despite the increasing level of privatization in the world, the

public sector in the developing countries still continue to employ a large number of the workforce in those countries. It has been suggested that public service employment has been growing about four times as fast in the developing countries as in developed countries. Traditionally, the public sector in developing economies has been in the forefront of economic development. As a result of the strategic importance of the public sector in the economic development of many countries, there is a concerted effort to make public sector management respond to the changing needs of developing nations. There is now a renewed interest in the performance level of the public sector in many developing countries as they face a more competitive global environment. Efforts to improve the performance level of the public sector focus on both personal and contextual variables. Studies show that employees' attitudes towards work to affect their performance, and in turn personal and job characteristics influence the attitudes of employees. Public sector in developing countries is more focused on a more responsive service and adequate benefits for its employees to increase their performance level for them to serve better. The increasing pressure from within and from without to increase the performance and productivity of the public sector in developing countries makes it imperative to investigate reasons why there is a significant difference in the levels of performance and productivity in

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we are talking about how well they carry out the tasks that make up their job. Implicit in these studies is the idea that satisfied workers in most organizations tend to contribute significantly to the effectiveness and productivity of the organization. Motivation and leadership on the part of the top management plays an important factor that makes the employees of the lower level feel job satisfaction. Management needs information on employee job satisfaction in order to make sound decisions. It needs to be understood. both in preventing and solving employee problems. changes can be made that will result in higher levels of job satisfaction and consequently an improved level of performance and productivity.the public and private sector. In contrast low performance and productivity may be a result of low levels of job satisfaction. Some evidences from previous studies suggest that public sector employees experience lower levels of job satisfaction. Given the evidences that the level of performance and productivity in a public sector can stand a major improvement. monitored through job satisfaction survey and dealt with so as to avoid some of the potential by-products of dissatisfaction that may haunt organizations like the SSS. When we say that a 2 . Job satisfaction is a critical factor in organizational behavior. Job satisfaction has important consequences for organizational effectiveness. In dealing with the performance of people doing jobs. If those factors would be identified. the purpose of this study is to identify the factors that relate to job satisfaction among public sector employees specifically employees of Social Security System Cubao Branch.

personal attribute. Before. promotions and awards. Identifying the factors that dissatisfies the employees will help the management in improving employees’ job satisfaction and eventually will increase productivity and result to better performance. this study would determine the job satisfaction for SSS employees in Cubao Branch. we are making judgments on how the person performs or behaves in the job. to avoid over giving of benefits to the employees. promotions and awards. but as time changes employees’ clamor for more benefits. on how they deal with co-workers and the members. Since the management needs to give more benefits. So the researchers were also aimed to study the costs of giving the following benefits to the employees of the SSS Cubao Branch.person is a good worker. 3 . Employees are rated based on their performance on how well they do their jobs. job satisfaction is not an issue to the employees of SSS Cubao Branch. Thus. and attendance. We can make these judgments according to some standards that are incorporated in the performance rating. The performance rating is the basis for awarding productivity bonus. the management must also control their cost of giving the said benefits to be able to satisfy their employees. Performance rating is now regularly conducted in organizations to assess their employees.

and to be able to achieve this. instrumentality theory. and two –factor theory. In fact. social influence theory. There are several theories that are identified toward the understanding of job satisfaction and these are: comparison theory. which paved the way for researchers to investigate other factors in job satisfaction. It was later found that this increase resulted. how content an individual is with his or her job. because they believe that one of the key in the success of an organization is a well established workforce. These studies ultimately showed that novel changes in work conditions temporarily increase productivity (called the Hawthorne Effect). Job satisfaction itself not a very new concept in the society. This finding provided strong evidence that people work for purposes other than pay. The comparison theory denies that job satisfaction is just an additive function of the objective outcomes from the job received by the individual. The instrumentality theory postulates that individuals assess their satisfaction with 4 . one of the biggest preludes to the study of job satisfaction was the Hawthorne studies. but from the knowledge of being observed. equity theory. rather it is an issue that every organization needs to pay attention of. sought to find the effects of various conditions (most notably illumination) on workers’ productivity. These studies (1924–1933). not from the new conditions. primarily credited to Elton Mayo of the Harvard Business School.Theoretical Framework Job satisfaction can be simply defined as. they paid attention to how contented their workforce to their present job. As we can see the study about job satisfaction started to emerge in early 1920s.

The last theory is the two –factor theory which states that.jobs by considering the extent to which job lead to valued outcomes. Therefore in this theory. it is assumed that each individual has a set of judgments about how much he values certain outcomes such as pay. Another theory is the equity theory. This theory only implies that for a person to achieve a job satisfaction the person must feel good or be happy about his work. job satisfaction is derived from two sets of factors namely. Supporting the employees’ job satisfaction. 5 . In turn. good working condition etc. they look around. the basic assumption in this theory is that individuals may come into new jobs not knowing how satisfied they will be with these. effectiveness. promotion. and success of the organization. and should be motivated properly. according to Kochan (2006). see others like themselves who are satisfied and dissatisfied with. So it implies that every person in the organization tend see whether they receive the right for themselves. positive feelings about the job and related to the content of the work itself which is called motivation factors. We can say that job satisfaction is critically an important ingredient to organizational success today. would help not only the organization to grow. and are then influenced by these observations. Understanding the basic meaning of job satisfaction is a good primary step to more effectively managing it. Making the organization equipped with an excellent workforce that is willing to serve the organization better and contribute of the productivity. but its employees itself. Next is the social influence theory. holds that people make cognitive comparison of their contribution to a work situation and the things they get out of it with those of other people.

6 . unstructured interviews. namely: salary and other benefits. Between the dependent variable and intervening variable is an arrow pointing to the dependent variable to indicate direction of possible effects. So every employee in the organization is expected to give a high quality of service to the people. sex. environment and co-workers relationship. observation and data analysis. and motivation and promotion.Conceptual Framework The Social Security System is an organization that is committed in serving the public. It is the concept of this study to determine the cost of the benefits given to employees and job satisfaction and performance of the employees of SSS Cubao Branch considering the socio-demographic variables. highest educational attainment. This is true also between the intervening variables and independent variables. Figure 1 shows the employees’ profile in terms of age. as the dependent variable and job satisfaction is an intervening variable which is a function of the independent variable: socio-demographic characteristics and its determinants as stated in the literature. The process uses questionnaire. position and monthly salary. The cost to management variable is presented here. civil status. The study precedes the following conceptual framework in Figure 1. length of service.

INPUT  Profile of the Respondents o Age o Gender o Civil Status o Highest Educational Attainment o Length of Service o Present Position o Monthly Salary  Organizational Perspective of SSS o Type of Organization o Years of Existence o Number of Employees o Business Hours o Days Open  Level of Job Satisfaction of the Respondents o Nature of Work o Salary and Other Benefits o Environment and Co-workers Relationship o Motivation and Promotion  Cost of Employees Benefits to Management PROCESS  Survey Questionnaire  Observation  Documentation  Unstructured Interview  Statistical Analysis o Frequency o Percentage o Ranking o Weighted Mean o ANOVA OUTPUT  Policy Recommendations for:  Improved Level of Job Satisfaction  Improved Job Performance  Increased Level of Employees Productivity  Controlled Cost of Employee Benefits FEEDBACK Figure 1 Conceptual Framework 7 .

2 2.Statement of the Problem This study entitled “Job Satisfaction of Social Security System (SSS) Employees at Cubao Branch: Implications and Cost to Management” aimed to determine the levels of job satisfaction and performance of the organization and its cost to the management.7 2. Civil Status. Monthly Salary? What is the organizational perspective of Social Security System (SSS) Cubao Branch in terms of: 2.6 1.5 1. and.3 1. and. the cost of benefits given to employees.1 1.4 Type of Organization. Years of Existence.4 1.2 1. Present Position. the organizational perspective. What is the profile of the employees of the Social Security System Cubao Branch in terms of the following: 1. and any significant differences among the variables. Length of Service.3 2. Number of Employees. Sex. the level of job satisfaction. this research sought to answer the following questions: 1. Business Hours. Specifically.1 2. Moreover. factored in are the profiles of the respondents. Highest Educational Attainment. 8 . Age.

Gender.2 1. Length of Service.2 3. Present Position. and years of service? 5.1 1. among positions or age. How much does it cost the company to make their employees satisfied with their current job? Hypotheses The null hypothesis of this study is: There is no significant difference in the job satisfaction levels of the respondents when grouped according to: 1. Civil Status. Monthly Salary.4 1.3 3.6 1.2. Highest Educational Attainment. Salary and Other Benefits.7 Age.5 3.4 Nature of Work. Motivation and Promotion? 4. and. Environment and Co-worker Relationship. and.5 1. 9 .1 3. Days Open? How would the level of job satisfaction of the respondents be describe terms of: 3.3 1. Is there a difference in the level of job satisfaction between genders.

10 . This confinement is due to limited time and resources. only the regular employees.Scope and Limitation of the Study The study is aimed to determine the level of job satisfaction of the employees and its relationship to effective service. This study is limited to 88 employees of Social Security System Cubao. to maintain a high level of satisfaction and performance. if not. Maintaining a high degree of job satisfaction for the employees is a must in every organization. The main concern of the study is focused on the job satisfaction and performance of SSS employees in Cubao Branch. The outcome of this study would contribute to solve the problems that beset the SSS employees during performance evaluation. These information are worth knowing for. and which aspects they are less satisfied. The result of this study would lay out the information about what job aspects the employees are satisfied and what aspects they are not satisfied. With respect to level of job satisfaction of employees. the results of this study would provide some information on what aspects the employees are most satisfied. so that both the employees and the employers can make several steps to increase. It does not include the contractual employees. It would be beneficial to both the employees and the Branch they are working to maintain a high degree of satisfaction for the Branch to have a favorable performance. Significance of the Study This study sought help the Branch manager/head and supervisors to identify the problems that beset their employees.

This study would help the members of the SSS. 11 . the government would be able to know all problems that their employees encounter. and for them to evaluate what they can do for the employees. develop and widen the topic. Students. SSS employees would able to serve their members better. so that. Researchers.This research aimed to establish the relationship between the job satisfaction and performance ratings in order to call the attention of the Branch head/manager and supervisors as to the role of job satisfaction on the performance of employees and somehow effect a change in their way of handling the performance rating process. This study will serve as reference for future researchers to innovate. This study will help educate the students about what would be the possible problem they would encounter in the future if ever they are planning to work in SSS. Government. which is a Government Owned and Controlled Corporation. This study would also help contribute additional information to serve the following individuals: Members. This also encourage other researchers to conduct as study about related topic of employees’ job satisfaction in other companies and organization. Therefore. in turn. This study aims to determine the level of job satisfaction of the SSS employees. Because this study aims to improve the performance of the employees.

they only renew their contract every six months depending on the assessment of their performance.Definition of Terms The following terms are defined operationally in order to give clarity and guidance on the study. the terms presented below refers only to SSS transactions. or doctor’s degree. Age. master’s units. or widow/widower. Highest Educational Attainment. he or she has a high performance rating. master’s degree. Contractual Employees. Fremont & Rosenzweig. This refers to the classification of the respondent of being masculine or a feminine. (Kast. 46-55 years old or 56 years old and above. 2005) Gender. 36-45 years old. This pertains to the classification of the respondents as to age which may fall under the following bracket: below 25 years old. Operationally. bachelor’s degree.2004) It also refers to how contented is the person in his present situation in his job. separated. (Milkovich and Boudreau. Job Satisfaction. This refers to a pleasurable or positive emotional reaction to a person’s job experiences. Civil Status. Employees Benefits. This refers to the employees hired by the SSS that don’t yet attain permanent employment. These are the things that an employee who works in an organization is entitled to receive whether or not. It identifies the highest educational degree attained by the respondents from being high school graduate. James. 12 . The status of the respondents which may be single. married. doctor’s units. 25-35 years old.

from 6 up to 10 years. or level of contribution. (Thor. efficiency and participant’s satisfaction in carrying out duties and responsibilities. This refers to the score of the Level of Performance of the employee. (Thor. This refers to the classification of respondents according to length of service which may be less than 1 year. (Wright and Noe. Level of Performance. it refers to behaviors that are relevant to the organization’s goals and can be measured on term of each individual’s proficiency. from 11 up to 15 years. Privatization. This refers to an act of an organization to remove its characteristic as a public servant. 2004) Position. 2004) Performance Rating. or more than 15 years. It is equal to degree effectiveness. 2004) Productivity. Also. This is the measure of the performance of the company to see whether they are operating effectively. or rank and file. 2004) 13 . (Thor. This may be managerial. This serves as the basis in giving promotion and even incentives for those employees who obtained a high performance rating. Privatized organizations are not anymore controlled by the government.Length of Service. from 1 up to 5 years. This refers to the benefit given to those employees who obtained a high performance rating. This refers on how well the employee contributes to the organization’s operation. Productivity Bonus. supervisory. This serves as one of the motivating factor for every employee in the organization to work better.

length of service. highest educational attainment.Profile of the respondents. Workforce. Promotions. A GOCC or Government-Owned and Controlled Corporation established to create a social security protection program for workers in the Philippines. sex. This refers to a very important attribute that an organization needs to be able to survive and prosper. an organization is worthless. current position and monthly salary. It means Social Security System. This consists of the age. without asking for a payment. SSS. civil status. This refers to the act of serving mass people. Public Service. or if payment is involved it is at a minimal cost. Without this attribute. Most of the public service organizations are subsidized by the government. This refers to the privilege given to every deserving and qualified employee in an organization to improve his current position in the organization and to increase his salaries and benefits. This is another motivating factor for an employee to work even harder. 14 .