STUDENT RESEARCH

ST. ANTHONY MONTESSORI

Senior High School Department

EFFECT OF FINANCIAL WELLNESS

TO ENHANCING JOB PRODUCTIVITY
AMONG THE LABOR FORCE
IN SAN JOSE, BATANGAS

A Research Paper Presented to the Faculty

of
St. Anthony Montessori Senior High School Department
Accountancy, Business and Management Strand

In Partial Fulfillment
of the Requirements for the K to 12 Basic Education Curriculum
for Senior High School

By
Atienza, Angela Lourdes S.
Baldivia, John Patrick P.
Evangelista, Trisha Mae B.
Guce, Michaella Joy E.
Quinagoran, Miracle P.
Quizon, Latifa L.
Umali, Lady Hannah O.

November 2019
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ST. ANTHONY MONTESSORI
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CHAPTER I
INTRODUCTION

This chapter presents the overview and the rationale of the research study. Herein
discussed are the essential points in understanding the objectives, intentions, implications
and significance of the study. Furthermore, contents pertaining to scope, delimitation and
limitation are also included in this part.

Background of the Study

Nowadays, the complexity of lifestyle and the ever-evolving ways and means of living
have been wanting appreciation from people. This is way more applicable to those in the labor
force who devote minimum of eight (8) hours in their respective companies or firms. After
such exhaustive period of work, they come home to attend to personal and family duties and
responsibilities. Ultimately, their employment is not their main obligation, but that is, to
promote a well-maintained home with utilities attended, bills paid and needs satisfied. In the
field of Organizational Behavior, it is a much-discussed topic how the overwhelming tasks at
home, could, in a way, mix up, meddle or distract with the performance of the employee during
working hours. Although there is a view of sensitive consideration to this issue, it is still
inevitable that in the perspective of managerial or professional outlook, it cannot be raised as
an excuse. Hence, the researchers are inquisitive about identifying the effect of financial
wellness to enhancing job productivity among labor force of San Jose, Batangas.

Primarily, financial wellness is usually looked as a monetary or wage-related concept.

However, some employers struggle to pay top wages. Economic conditions, organizational
changes and demand for business services and products affect an employer’s ability to
compensate employees at extremely competitive wages. Low wages can have devastating
effects on employees in terms of anger and disappointment, stress, low morale and
unemployment. The question at this point is: To what extent is the minimum wage legislation
being followed? According to DOLE’s data, based on random inspection of firms, the rate of
compliance with the minimum wage regulation is about 82 percent. This problem confirms
that wag when not fairly extended to employees could mean less financial wellness.
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The previous researchers suggest that the independent variables (stress, work
environment, work load and salary) and job performance are related to each other. Nowadays
job performance has become a major problem for employers as well as employees especially
for those who are working in big organizations and companies such as oil palm plantation.
There are many factors or issues, which causes employees to perform poorly at their job. Poor
job satisfaction among employees have been said to be the cause of the existence of job
performance (Munisamy, 2013). Besides, job satisfaction is the main influence to variations
in employee’s commitment, absenteeism and turnover levels.

Putting the rationale in simple terms, the researchers want to determine whether
eliminating stress and pressure among employees in terms of their finances may lead to
increased job productivity. The intent of the researchers is to qualify such premise as to how
performance of workers can be enhanced through giving them good focus on the work that
they do, and not thinking or bothering about bills and expenses. Researches that apply to
Industrial and Organization Psychology can be of great help in realizing the importance of
such positive reinforcements or rewards to the improved situation of workers in their working
environment. Essentially, the researchers are warranting that happy and contented employees
perform at their best.

In this study, the researchers can be of help to local employers, particularly in San
Jose, Batangas to have an idea about how improving the financial wellness of employees can
give positive effects towards their productivity. Hence, if they need to increase their work
hours and productivity, a key factor for this is higher financial wellness. The problem,
however, is that the Philippine labor population is not fully employed. This means that a
certain percentage of the working age Filipinos either belongs to the categories of open
unemployment or underemployment. It is also related to our strand because it tackles all
about the Business world and Economy of or country.

This research undertaking works on developing insights related to Accountancy,

Business and Management (ABM) as the academic strand of the researchers. Basically, the
topic involves critical analysis of Human Resource Management (HRM) variables such as
financial wellness and job productivity. The discussions expected by then researchers are also
anchored towards organization behavior, employee relations and human resource
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development. With these topics discusses in their subject Organization and Management, the
current researchers want to acquire practical and experiential learning from applying such
concepts to this research undertaking. In the furtherance, they are keeping in mind how noble
this initiative is by creating new knowledge for the benefit of the general business community,
industry practitioners and business enthusiasts.

Finally, the researchers believe that this subject matter is timeless because the will of
organizations thru its managers and human resource development office should not stop.
They have to constantly innovate and formulate strategies on how they can be of help to
employees, especially in how they prepare themselves for the demands of the work
deliverables on a daily basis. They are in the position to appreciate that the demand of work
is very much overwhelming and as much as the employees are doing their best to accomplish
their tasks and contribute to the fulfillment of the organizational goals, they are also human
beings with physiological and financial security needs.

Statement of the Problem

The general intent for this research undertaking is to develop insights about the effect
of financial wellness to enhancing the job productivity of labor force in San Jose, Batangas.
Specifically, the researchers want to ascertain and examine the following research questions:

1. What is the demographic profile of the employees in terms of:

a. age,
b. gender,
c. civil status,
d. nature of employment; and
e. tenure?
2. How may financial wellness be measured in terms of:
a. objective measures,

b. financial management; and

c. subjective perceptions?
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3. How may job productivity of the labor force be measured?

4. Is there a significant effect of financial wellness to job productivity?
5. What proposal may be developed to businesses to help enhance job productivity of
employees?

Theoretical Framework

Fundamentally, the current research is supported by the famous theory of Abraham

Maslow which is the Hierarchy of Needs. Essentially, it was asserted that it gives an order of
the lower- to higher-level of needs of an employee in his quest for self-actualization. This
applies to the topic at hand because it visualizes how the organization should help or assist
the employees in achieving such needs gradually over the course of their career. Maslow’s
Hierarchy of Needs is presented in the figure below with the succeeding discussions about its
order.

Self-
Actualization

Esteem Needs

Love Needs

Safety Needs

Physiological Needs

Figure 1. Maslow’s Hierarchy of Needs

Physiological Needs. These include body’s automatic efforts to certain normal

functioning such as satisfaction or hunger and thirst. The need for air and shelter
also the need for sleep, sensory pleasures activity and arguable sexual desire. People
concentrate on satisfying these needs before turning to higher order needs.
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Safety Needs. These include safety and security freedom from pain or threat
of physical attack, protection from danger or deprivation, the need for orderliness.
Love Needs. These include affection, sense of belonging, social activities,
and both the giving and receiving of love.
Esteem Needs. These include both self-respect and the esteem of other self-
respect involving the desire for confidence, strength, independence and freedom
and achieving of esteem of other involves reputation or prestige, status, recognition
and attention.
Self-Actualization. This is the development and realization of one’s
potential.

In order to supplement this theory, another framework was provided. Aside from
Maslow’s hierarchy of needs, the study is further founded on the principles of Joo and Grable
(2004) about the measures of Financial Wellness as published in the Journal of Family and
Economic Issues. It was discussed in his theory that financial well-being is a generic index to
determine the way individuals manage their daily personal finances. It comprises of both
subjective and objective measures of financial management. Subjective perceptions on
financial wellness are based on the attitude and knowledge of an individual while objective
measures include calculations and analysis on the income, net worth, liquidity, consumption
and housing adequacy. Somewhere in between the measures are the actual financial
management actions such as behavior and practice.
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Figure 2. Financial Wellness Diagram (Joo & Grable, 2004)

The theoretical framework published by Joo and Grable (2004) is the relevant and fit

foundation for the study since it holistically measures the aspects of financing of the

household. It involves different variables and equivalent metrics to evaluate the financial

wellness of an individual. Using the tree diagram in Figure 1, subcomponents of financial

wellness can be used to specifically measure this variable. In a study by Woodyard (2013),

financial wellness can be measured using the breakdown of variables below:

Table 1

Breakdown of Financial Wellness Variables

Variables Subcomponents Metrics

Objective Measures Financial Measures Liquidity Ratio
Solvency Ratio
Adequacy Ratio
Demographics Age
Gender
Educational Attainment
Financial Management Financial Behavior Budgeting
Expenditure
Financial Practice Cash-flow Management
Credit Management
Savings
Investment
Subjective Perception Financial Knowledge Objective Knowledge
Subjective Knowledge
Financial Attitude Risk Tolerance

Operational Framework

With the foundational support of the theoretical framework presented, the researchers
developed an operational framework which will illustrate the objectives of the researchers in
the conduct of this study. As shown in Figure 3, the research paradigm conveys that the
researchers will measure the two variables such financial wellness and job productivity
exclusively. Then, such quantitative measures will be tested inferentially to achieve insights
about the effect of the independent variable to the dependent variable. The research action
presented in the figure is effect to achieve the implications of financial wellness to the
attainment of an enhanced job productivity of workers. Finally, the two major variables will
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be intervened by the demographic profile to evaluate whether it has residual effects to any
association that may arise from financial wellness and job productivity.

Independent Variable Dependent Variable

Ha
Financial Wellness Job Productivity

Intervening Variable

Demographic Profile

Figure 3. Research Paradigm

Hypothesis

For the purpose of this study, the following alternative hypothesis is postulated:

Ha: There is a significant effect of financial wellness to job productivity of labor force
in San Jose, Batangas.

Objectives of the Study

No organization can hope to move or improve positively without the effort of her
workers and as such sound salaries or wages is a sine qua non for improved performance of
workers. They contributed in no small way towards improved performance in the
organization. Therefore, this study among other things aims to:

1. characterize the demographic profile of the employees in terms of age, gender, civil
status, nature of employment; and tenure,
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2. evaluate the financial wellness of the labor force in San Jose, Batangas,
3. assess the job productivity of the labor force,
4. examine if there is a significant effect of financial wellness to job productivity; and
5. develop a proposal to businesses in their quest to help enhance job productivity of
employees.

Scope, Delimitation and Limitation

The scope of the study is limited to San Jose, Batangas only. The data will be taken
from 100 respondents along the labor forces in San Jose, Batangas.In understanding a
research work, its scope is normally defined with respect to a geographical and time
dimension. The fixing of such boundaries is usually resorted to due to the problems posed by
the administration of a large data, because the larger area you will research the harder it is.
This study therefore, conforms to the effect financial wellness of the worker within the
organization to increase their productivity of the labor force.

The choice on how financial wellness can affect the productivity of labor force in San
Jose, Batangas in this thesis study is not arbitrarily embarked upon by the researcher. It was
expected that the study would serve as a representation of a city from whose inductive research
finding would be of general application. The researcher hopes that other researcher interested
in wages on how it will undertake a more comprehensive study to cover in the future.
Therefore, financial wellness is regularly, hourly or weekly payment made or received by
workers for services rendered by an employer. Hence, both salaries and wages are payment
for labour service.

The obvious limitations of time, finance and materials such as resources on the
researcher makes it absolutely impossible to embark on such comprehensive study that will
cover the comparative study of some small medium enterprise along San Jose area. Hence,
the limitation has necessitated the choice of this study.

Significance of the Study

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Financial wellness can affect one of the job productivity of employees belonging to the
labor force in San Jose, Batangas. This study hopes to provide different idea that how wages
can affect the daily living of each employee and how he/she works in the organizations. The
research work is of a great importance to the employers and employees in the following ways:

1. Employer – to help them in giving idea on how minimum and high minimum wage
affects their performance.

2. Future Researcher – this study would help the student researchers to be aware and
knowledgeable of the wages in industry. It would help them to be a better analyst and
it can be a help as a future reference for more studies in the future.

3. Business Community – to help people in the upper level of business.

Definition of Terms

Employee Benefits. This is an extra amount paid to employees to better their

working conditions, it is inform of rent supplements, transport allowances, etc. It gives
employee a desirable working conditions and it satisfies their needs (Adkins, 2011).

Financial Wellness. As defined by Financial Finesse, it is a state of well-being where

an individual has achieved minimal financial stress, established a strong financial
foundation, and created an on-going plan to help reach future financial goals (Olson,
2018).

Human Resource Management. The practice of recruiting, hiring, deploying and

managing an organization’s employees (Rouse, 2019).

Job Productivity. The accomplishment of a given task measured against present

known standards of accuracy, completeness, cost and speed. In a contract, a
performance is deemed to be the fulfilment of an obligation, in a manner that releases
the performer from all liabilities under the contract.
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Labor Force. The number of people who are employed plus the unemployed who are
looking for work. The labor pool does not include the jobless who aren’t looking for
work (Amadeo, 2019).

Organization. A social unit of people that is structured and managed to meet a need
or to pursue collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry out different
tasks. Organizations are open systems--they affect and are affected by their
environment.

Organizational Behaviour. The academic study of the ways of people act within
groups. Its principles are applied primarily in attempts to make business operate more
effectively (Kopp, 2019).

Salary. A major responsibility of an organization is to make sure that its workers’

salaries are paid as at when due. The organization has to be certain that salaries paid
can satisfy the basic physiological and safety needs of their employees, which when
satisfied, one can expect them to put their best effort in order to achieve the
organizational objectives. Therefore, salary refers to a fixed regular payment usually
made every month or annually to the employees of an organization concerned. Salary
could be an agreed amount of money between the employer and the employee to be
paid at the end of every month in respect of the services to be rendered. Salaries are
compensation paid based on an annual rate of pay, though it is usually paid monthly
irrespective of the number of hours worked.

Wage. It is the reward that individual receives from an organization in exchange of

his labour. People who work in an organization are engaged in an exchange
relationship. The employees exchange the labour for financial rewards. To the
employer, the most important obligation he owes his employees is their wages. Wages
are compensation paid on hourly, daily or weekly basis. It is usually paid to labourer,
part time workers etc. workers are paid based on the number of hours worked and not
actually on the amount of work done. Therefore, wages are regularly or usually hourly,
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daily etc payment made or received for work or services rendered by an employee.
However, both salaries and wages are payment for labour or services rendered.

Workers. According to Merriam Webster, workers are the one that works especially
at manual or industrial labor or with a particular material.
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CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter provides a review of pertinent literature in relation to the management of

compensation and how it influences employee productivity. It will review works by other
researchers on how managing the components of compensation influences performance. We
will look at various definitions of compensation and performance and how performance can
be measured or has been proposed to be measured by some researchers. In this review, the
researcher seeks to explore various works related to the study area on the relationship between
compensation packages and their management and attempt to establish a relationship
between that and the work outputs of employees.

Review of Theories and Concepts

According to Woodyard (2013) in her discussion about the variables of financial

wellness, objective measures are those that comprise of income and consumption metrics that
are proxies for financial status such as net worth, net worth related to life expectancy, housing
adequacy, nutrition adequacy, availability of cash, income stability. Parallel to this discussion,
UNISA (2013) explained that financial wellness can be measured through objective measures
which means that finance is viewed quantitatively using standard financial management
ratios.

According to Khan and Jain (2005), finance had different definitions as used in various
situations, but is generally pertaining to the art and science of “managing money”. An exactly
analogous connotation was presented by the Oxford Dictionary referring to the word finance
as ‘management of money.’ This was similarly identified in Webster’s Ninth Collegiate
Dictionary wherein finance is defined as a science discipline that is concerned with the
management of funds through activities that include circulation of money, lending of credit,
making investments and the provision of banking facilities (as cited in Paramasivan, 2009).
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Discussing about the concept of financial management, Ramagopal (2008) affirmed

that it deals with the study of ‘procuring funds and its effective and judicious utilization to
meet the objectives of maximizing its value. He further cited the idea of Solomon (2005) that
financial management is concerned with the efficient use of an important economic resource
like money and capital funds. Moreover, it stresses a goal of justifiable expenses and optimal
utilization of cash flows, which is applicable to both individuals and firms. Accordingly,
financing strategies and management are founded on different perspectives based on the
party, which can be personal, public or corporate (Ramagopal, 2008).

One of the most important subset of private finance is corporate finance which was
highlighted by Helbaek et al. (2010) to be concerned with budgeting, financial forecasting,
cash management, credit administration, investment analysis and fund procurement of the
business concern as it adopts to modern technology and application suitable for global
environment. Relating to his definition, Guthumann and Dougall was cited in Bierman (2010)
in his book ‘Introduction to Accounting and Managerial Finance: A Merger of Equals’
confirming that business or corporate finance can be defined as the activity concerned with
planning, raising, controlling, administering of funds used in business organizations. The
same was written by Parhter and Wert that financial management for business deals primarily
with raising, administering and disbursing funds by privately owned business units operating
in non-banking or non-financial fields of industry.

For the purpose of the study, the focus will be individual financial management which
was Gibson (2006) as the practice of managing money and financial decisions for a person or
family including budgeting for expenditures, investments, insurances and retirement and
social security planning. Moreover, it was found to involve an objective of attaining financial
security and independence so individuals or families can meet expected expenses and
withstand monetary emergencies through various strategies like budgeting, saving, tax
planning and the like by taking account the various financial risks and future life events
(Business Dictionary [online]).

Focusing on the nature and scopes of financial management, Ramagopal (2008)

suggested that financial management is focused on optimum utilization of funds rather than
rising or procurement of funds alone. Additionally, since resources are limited particularly in
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developing countries like Philippines, the key objective is to take maximum benefit in terms
of output out of the limited inputs. The author also clarified that the scope of financial
management had undergone significant changes and that over time, managing finances for
both individuals and corporate organizations was broadly categorized into two approaches
which are traditional and modern.
More to Ramagopal’s (2008) discussion is the old perception or paradigm to financial
management which is its narrow sense of procurement and arrangement of funds. For
business organizations, the finance department was treated as a provider of funds just as the
other departments need these for day-today operations. Furthermore, ‘the utilization or
administering resources were considered outside of the purview of the finance function and it
was felt that the finance manager had no role to play in decision-making for its utilization. On
the other hand, it was explained that the modern approach to financial management
emphasized the shift from rising of funds to the effective and smart use of these funds for it is
looked as an analytical way of looking into the financial problems of firms or individuals.
Generally, Ramagopal (2008) implied that the contemporary perspective on financial
management is focusing on using the resources in the best way possible so the individual or
families can make the best out of it, be able to solve one’s financial problems and supply their
daily needs.
According to Brand (2011), subjective perception of financial wellness is the exact
opposite of objective measures since the focus is the attitude and personal knowledge of an
individual about financing activities. Generally, it exists in both objective and subjective
forms. Objective financial knowledge reflects the individual’s knowledge of specific financial
issues such as compound interest, the effects of inflation on savings, the time value of money,
the benefit of diversification and interest rates. Subjective knowledge indicates a person’s
interest in financial matters, enjoyment in working with financial issues and confidence in
one’s ability to make financial decisions.

Review of Related Studies

There are many factors of pay (Millvier and newman; 2005) research perform that may
be form of individually and may be form of multiple performance pay plan different qualities
can consider the efficient of degree to perform merit pay to performance, bonus long
incentives first of all merit pay is form of reward and individual function of their individuals
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performance and rating (Henenman&warner, 2005) the pay plan is most common by
employee performance appraisal (Chani 1998) meant by pay has been frequently use in the
organization. (Pak, 1984; alson, 1990) number of recent survey 80 to 90 percent organizations
use merit pay (Heneman &wamer2005). Bounces pay is monetary reward gives to employee
in addition to their fix compensation (Millovian& newman, 2005). This pay plan in base on
individual performance but bonuses does pay and their not performance (Suman&shout,
2000). There are rewards like the long term growth as well as employee relation (Rousse
andhou, 2000) mostly form of cash in and stock (Rasch&lesson, 1984). The length and
performance pay plan mostly are their (Elling,1982) long term incentive also generate some
problem of their liquidity long term incentive Cantal get immediately value because
requirements on reward convicted in to cash.

Performance related pay directly impact the workers performance creating the output
through pay and workers has more able to give pay structure according to the performance
(Lazear, 1986) sheer (2004) some results for their respected tree sampling allocated to price
fixed rate. The role of employee performance linking to bounces to improve the productivity
Bandied re et al (2007). The relation of pay and performance is dirtily linking (1999) worker
has a fixed pay in a period of time and give incentive for their good performance give the pay
for shorter term incentive give the power job shorter oriented. The performance related pay is
one kind or another is most OECD member countries mostly senior managers and new
mangers or employee. The performance policies in the reference of economics and some other
problems faced OECD countries in the mid-1970. It can improve the individual motivation
improve the performance of the employee in this context performance related pay refer to
system linking the performance it based on the organizational accountably measure individual
outputs individual output of the organizations performance pay can be manage value of
potential references (Denmark; Finland, Korea, Newz land OECD 1993;OECD 1997).

Reward can generate as important role for employee performance. A good employee
feel that value of the company is working for the also enhance the batter work they are well-
being. Taken seriousness by their employee and their career self-assessment also taking care
by their commonalty employee are the big part of organization like engine of the organization
which else and fund the reward knows organization scan attain any objective with its employee
(Akerale, 1991) also blame the productivity of the workers on several factors provide adequate
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failure compensation for hard work (Mark and ford 2001). Mention the real success of
organization from employee from employee willingness to use their creativity and among how
the employee increases the positive employee inputs and rewards practices in place. The
importance of motivating employees cannot enough in organizations context motivated
employee highly productive more efficiency providing and willing to performing taking in the
organizations (Hurtreatal, 1990; Entwested, 1987) in views that if the employee performance
efficiently more than ten leaders to organizations rewards as a result of employee
performance.

The highly motivated employee builds advantages for their company and leads the
organizations of its objectives (Rizal and ali, 2010). This paper impact of reward dimension
on employee performance with special reference to highly companies. According to (Hasiban
2003) that job satisfaction effects the level of employee performance which means that
satisfaction derived from therefore declaration of employee so good. So that if job satisfaction
is mean moral decline and support of the organization objective (Hasbuan; 2003) According
to grisly and Brown (1950&johson2008). Arguments that have five factors that have increases
job satisfaction position ranks age financial guarantee and influence job satisfaction consist
on psychology factor and social factor. A pay is the key determination but experience rewards
is study indicate more complex and difficult. The another study impact of pay menagerie level
that may be tailed to satisfy the key motivational rewards for effective performance (Olce
1993;olce 1997) Reward is the most important element to eliminate employee for paying their
best efforts to generate the innovation and the new ideas in cress the company performance
financial and noon financial Dewhurst et al(2010) relationship of the manager supervisor
reward power positivity linked with employee performance more productivity ,satisfaction
and turnover and organization citizenship behavior (simon,1976;more&hunt
1980;jahangar,2006). Dee prose (1994) says that motivation of employee productivity can be
enhance provide effective recognition which provide the result improve the performance of
organization. He entire second of the organization that the employee motivated to assessment
the performance of job compensation abacus at all 2003). The ability to organization is
accommodates the needs employees their performance 1960). Inside the commitment
towards their organization and their work play a critical role (eisenbegal 1992).
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Milkovich and Newman(1999)refer that financial return and employee receive as an

employment relationship all cash incentives and other mating employee received which
countries of total compunction .Global business and economics(2010) compunction is a big
range of financial benefits and Nan financial benefits, It is played in the form of wages and
salaries and also insurance level free traveling is also including chhabra(2001).It also included
that the salary is generally paid for monthly and year. The time spent in the organizations
salary is played time spent on the job. Some type of indirect composition offered by today
organization (byars and rul 2008).

 Social security: this is managing insurance system by the rules of employee must pay
into system and contain perchance of pay up to maintain limit. And also average
monthly wages give the security of the employee.
 Workers compensation: it also says that employee from loss of salary associated extra
job related illness. The laws generally provide the medical expenses.
 Retirement plan: it gives that a sources of income who have retail money paid for a
previous services .Give the time of employment one from of plan is contribution plan
also known as beneficial annual plain.
 Paid holiday: The new year day, independent day which is called holiday plain of
employee to employee
 Paid for vacation generally depend on employee services. Most of the companies’ unit
less than one year.
 Other benefits: It also involves the additional benefits food services may be wide range
purchases discount example for the especially attractive for the retail stores.

Employees who are the most efficient are like to be they are motivate to perform
medina (2002) this relationship mean that rewards and employee performance is expecting
theory which means that employee are most to be motivated performance is more
performance to receive the rewards and bonus. The rewards may be cash, recognition both to
be acceptable that to achieve the forgets they are performance is well suesi (2002) rewards is
the key motive to increase the employee performance to expected well. Give the monthly
rewards also increase the performance Osterloh and Frey (2012). Employees are extremely
motivated to monthly rewards.
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Some other views that recognition in pleasanter the organization favorable works
environment motivated the employee Freedman (1978) as cited in Rizwan and Ali
(2010).Employee are the important part of any organization increasing the performance they
can be motivated through financial and non-financial benefits they can designing that you can
says that composition is reward which is receiving by the employee to show their performance.
Employee concentrated pay or wages and similar to non-monetary exchange for the employee
performance (Holt, 1993). Good organizations are maintained to design and enable the
organizations to attract the highly skilled and qualified employee retain and motivation
towards objective and goals achieve and most employee getting is pay (Decenzo and Robbins,
1999). If the employee free that they have not getting good salary they cooking for better
employee dissatisfaction with the compensation towards goal attainment towards goals done
to be lower. Dissatisfied employee increasing the turnover, Absents am and poor metal
health(Welthel and Davis,1996). The main objective of compensation is that employee
attracted to work and motivated good job for employee (Davis, 1996).

Synthesis

Financial wellness can be measured through objective measures which means that
finance is viewed quantitatively using standard financial management ratios (UNISA, 2013).
Finance had different definitions as used in various situations, but is generally pertaining to
the art and science of “managing money.” As highlighted by Helbaek et al. (2010), one of the
most important subset of private finance is corporate finance which to be concerned with
budgeting, financial forecasting, cash management, credit administration, investment
analysis and fund procurement of the business concern as it adopts to modern technology and
application suitable for global environment. It was found to involve an objective of attaining
financial security and independence so individuals or families can meet expected expenses
and withstand monetary emergencies through various strategies like budgeting, saving, tax
planning and the like by taking account the various financial risks and future life events
(Business Dictionary [online]). According to Decenzo and Robbins, (1999), good
organizations are maintained to design and enable the organizations to attract the highly
skilled and qualified employee retain and motivation towards objective and goals achieve and
most employee getting is pay. As said by Davis (1996), the main objective of compensation is
that employee attracted to work and motivated good job for employee.
 STUDENT RESEARCH
ST. ANTHONY MONTESSORI
Senior High School Department

CHAPTER III

METHODOLOGY

This chapter conveys the research design, population and sampling, research
instrumentation and metrics, data gathering procedure and statistical treatment of data. In
substance, it provides the methods and metrics of this academic paper.

Research Design

This chapter will introduce the research methods used in the study. The geographical
area where the study was conducted, the research design, data-gathering methods and the
respondents are described. The instrument used to collect data, including methods
implemented to make the study reliable are also included.

A quantitative method is selected. Along with the questionnaires personally given out
to the respondents for statistical representation, few experts and other researchers’ studies in
this field will also be consulted for the findings of the study. This method is appropriate for
accurate percentage to determine the effect of financial wellness to job productivity among
labor force in San Jose, Batangas.

The researchers will gather information to use as a basis in carrying out the study
descriptive survey will be employed for this study. This design is a research method which
utilizes different groups of people who differ in the variable of interest, but share other
characteristics. This design will be adopted to enable the researcher gather information from
a group targeted sample that is part of the main population of labor force of San Jose,
Batangas. This sample comprises management staff, senior (non-management) staff, middle
level staff and junior staff. The objective is to be able to capture some performance such as
perceptions, and to make relevant inferences from the data collected representative of the
entire population. Data from both primary and secondary sources were used for the study.

Population and Sampling

The data was collected from the labor force of San Jose. Approximately, 45 SME were
included to collect data. 20 Questionnaires were distributed among the full time working
employees of labor force of San Jose, Batangas and they were selected randomly. As the
 STUDENT RESEARCH
ST. ANTHONY MONTESSORI
Senior High School Department

questionnaires were distributed personally, therefore the response rate was 100 %. The
population size was consists of 100 employees which will be selected randomly.

Research Instrumentation and Metrics

All the questions were extracted from already developed questionnaires which were
distributed to all employees. All the questions were designed in 4-point Likert Scale
(1=Strongly Disagree, 2=Disagree, 3=Agree, 4=Strongly Agree). All the questions regarding
to each variables are given below.

Data Gathering Procedure

Descriptive and analytical techniques were used for the analysis of data. The process
of analysis was carried out. Among the descriptive analysis, mean and standard deviation were
applied. Among the analytical techniques, correlation and regression were run to measure the
impact and relationship among the variables.

Statistical Treatment of Data

The researchers will examine the data gathered through observations of numerical
data and statistical analysis. Percentage and frequency tally techniques will be used by the
researchers to determine the effect of financial wellness to enhancing job productivity among
labor force in San Jose, Batangas.

Correlation Analysis. This will be used to examine the degree of relationship

between financial wellness and job productivity, as a preparation for the regression analysis.

Regression Analysis. This statistical tool will be used by the researchers in

identifying if there is significant effect of financial wellness to job productivity of labor force
in San Jose, Batangas.
 STUDENT RESEARCH
ST. ANTHONY MONTESSORI
Senior High School Department

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