ABM A Cayetano

KEY PERFORMANCE INDICATORS AND ITS EFFECT ON THE
LABOR PRODUCTIVITY OF SHOE-MANUFACTURING

BUSINESSES
A Research Paper Presented to Mrs. Marife D. Baliwas, MAED

Faculty of FEU Roosevelt Rodriguez
Rodriguez, Rizal
In Partial Fulfillment of the Requirements for

The Course Thesis Writing
Practical Research II
By
Jomeri Anne V. Cayetano Sarah Mae F. Gonda
Kesseane Zay P. dela Cruz Angelo Bryan D. Purificacion
Honey Anne C. Espiritu John Richard H. Rivera
Ivan Jerome C. Garcia Alynna Marie A. Soleta
XII – ABM A
S.Y. 2019 - 2020
APPROVAL SHEET
FEU ROOSEVELT RODRIGUEZ, SED

Manggahan, Rodriguez, Rizal
This research entitled, “KEY PERFORMANCE INDICATORS AND

ITS EFFECT ON THE LABOR PRODUCTIVITY OF SHOE-MANUFACTURING
BUSINESSES” by Jomeri Anne V. Cayetano, Kesseane Zay P. dela
Cruz, Honey Anne C. Espiritu, Ivan Jerome C. Garcia, Sarah
Mae F. Gonda, Angelo Bryan D. Purificacion, John Richard H.
Rivera, and Alynna Marie A. Soleta in partial fulfillment of
the requirement for graduation has been accepted and
recommended for acceptance and approval.
MARCH 2020
________________________
MRS. MARIFE D. BALIWAS
Research Adviser
PANEL OF EXAMINERS
_________________________ _________________________
MRS. ROSANA D. ALARILLA MS. MARIE GRACE M. AZURIN
Member Member
_________________________ _________________________
MR. FELIPE A. MALLABO MR. HERNANIE A. TAN
Member Member
Accepted and approved in partial fulfillment of the

requirements in Thesis Writing Practical Research II.
_____________________________
MRS. LEONILA M. SANTOS
Department Head, JHS
_____________________________
MRS. MARIA TERESA S. ANGELES
Principal
ABSTRACT
TITLE: KEY PERFORMANCE INDICATORS AND ITS EFFECT ON THE LABOR
PRODUCTIVITY OF SHOE–MANUFACTURING BUSINESSES
SCHOOL: FEU Roosevelt Rodriguez
Secondary Education Department
RESEARCHERS: Jomeri Anne V. Cayetano, Kesseane Zay P. dela
Cruz, Honey Anne C. Espiritu, Ivan Jerome C.
Garcia, Sarah Mae F. Gonda, Angelo Bryan D.
Purificacion, John Richard H. Rivera, Alynna
Marie A. Soleta
RESEARCH ADVISER: Mrs. Marife D. Baliwas
RESEARCH CONSULTANT: Mr. Felipe A. Mallabo
DATE DEFENDED: February 20, 2020
SUMMARY:
This study aimed to determine the Key Performance
Indicators and its effect on the labor productivity of shoe-
manufacturing businesses.
More specifically, it sought answers to the following
questions:
1. What is the satisfaction rating of the selected
respondents with regards to the Key Performance
Indicators in terms of:

1.1 Employee - Employer Relationship?
1.2 Fringe Benefits?
1.3 Work Environment?
1.4 Work Ethics?
2. What is the average working time of the selected
respondents by department?
3. What is the average shoe production of the selected
4. What is the labor productivity of the selected
respondents in GD Top Shoe Shop Subcontractor, San
Mateo, Rizal?
5. Is there any significant relationship between the Key
Performance Indicators and the labor productivity of the
selected respondents in GD Top Shoe Shop Subcontractor,
San Mateo, Rizal?
The researchers chose GD Top Shoe Shop Subcontractor, a
shoe-manufacturing business located in Guitnang Bayan, San
Mateo, Rizal, and got its factory workers as main respondents;
the workers were divided into six (6) departments namely:
‘Sukat’, ‘Areglo’, ‘Tahi’, ‘Lapat’, ‘Swelas’, and Finishing.
Two (2) respondents were selected from each department,

resulting to a totality of twelve (12) respondents. The
researchers formulated research instruments that would
measure the labor productivity and the satisfaction rating of
the selected respondents with regards to the Key Performance
Indicators suggested by the study. The time cards, along with
the observation and interviews, were administered in the
factory for twenty-eight (28) days. Survey questionnaires
were then disseminated to assess how satisfied the
respondents were of their workplace. After which, all of the
data were evaluated and checked by the researchers
themselves. They then tabulated the results and computed for
the mean, weighted mean, labor productivity, and Pearson’s
product moment correlation to determine the significant
relationship between the Key Performance Indicators and the
labor productivity of the selected respondents.
The major findings of the study were summarized below:
1. The satisfaction rating of the selected respondents with
regards to the Key Performance Indicators are as
follows:
1.1 With regard to the employee - employer
relationship, the selected respondents agreed on
all statements, with a weighted mean of 3.78,
inferring that the employees are very much in good

terms with their employer. They agreed on being
motivated due to this, and agreed on receiving
encouragements and compliments, as well as on
being treated rightly, justly, fairly and
humanely.
1.2 With regard to the fringe benefits, the workers
were neutral about receiving professional
support, enjoying leave benefits, and being
granted of an insurance plan and of medical help.
However, with a weighted mean of 2.33 and 2.08,
the respondents disagreed on receiving rewards and
recognition and being entitled of a pension plan
as a retirement support.
1.3 With regard to the work environment, the selected
respondents exhibited neutrality on all the
statements, inferring that they were neutral about
the cleanliness, organization, availability of
safety mechanisms, and ventilation of the
workplace. They were also neutral about being
comfortable with the smell, the working space, and
the noise surrounding them every day while at
work; thus receiving an average of 2.97.

1.4 With regard to the work ethics, the workers agreed
that they are friends with their co-workers, they
always go to work early and on time, do assigned
tasks immediately and willingly, and display a
positive attitude while working. Resulting to a
weighted mean of 3.42 however, the workers were
neutral about accepting criticisms and
suggestions from others open-mindedly.
2. The average working time of the selected respondents are
as follows:
The ‘Sukat’ department averaged 5 hours and 42
minutes, the least among the six (6) departments; while
the ‘Lapat’ department worked for the most number of
hours, at 10 hours and 32 minutes.
3. The average shoe production of the selected respondents
are as follows:
The ‘Sukat’ department produced the most, finishing
an average of 97 pairs per day. The least, on another
note, were the selected respondents from the ‘Areglo’
department, whose average is at 10 pairs per day.
4. The labor productivity of the selected respondents are
as follows:
The ‘Sukat’ department averaged the highest with
16. The ‘Areglo’ department conversely averaged the
least, producing only a pair per hour.
5. The significant relationship between the Key Performance
Indicators and the labor productivity of the selected
respondents are as follows:
5.1 The computed r – value resulted to 0.14, a
positively low relationship. The workers'
performance is not affected by any means the owner
treats them.
positively low relationship. The respondents do
not consider the benefits they receive and are
entitled to as a basis of how well they will
perform.
5.3 The computed r – value resulted to -0.08. The
cleanliness, orderliness, smell, amount of space,
noise, safety mechanisms, and ventilation in the
workplace has no relationship or influence at all
on the workers’ performance.
positively low relationship. The workers’ moral

behavior and conduct do not affect in any way how
abundant the workers will produce.
Based on the findings obtained, the following
conclusions were drawn:
1. The Satisfaction Rating of the Selected Respondents with
regard to the Key performance Indicators
1.1 The selected respondents agree that GD Top Shoe
Shop Subcontractor has an overall favorable
employee - employer relationship; their business
being a tremendous success for twenty-nine (29)
years already is a testament to this.
1.2 As the selected respondents were neutral, this
portrays the need for GD Top Shoe Shop
Subcontractor to keep up with the standards and
improve in terms of the fringe benefits they offer
to their workforce.
1.3 Resulting to a neutral average, this means that
the safety and pleasantry of the work environment
in GD Top Shoe Shop Subcontractor is just enough
for the workers to perform well.
1.4 The selected workers in GD Top Shoe Shop
Subcontractor agree on having overall good work

ethics, creating an environment supported by moral
values. This aspect partly contributes to their
effectiveness in the workplace.
2. The Average Working Time of the Selected Respondents by
Department
The data shows how lenient GD Top Shoe Shop
Subcontractor is in terms of the workers’ working hours.
Having one of the departments averaging less than the 8-
hour regular working hours implies that it does not
matter whether the workers perform for hours less than
they are expected of, as long as they complete the tasks
assigned to them before the deadline arrives.
3. The Average Shoe Production of the Selected Respondents
by Department
The ‘Sukat’ and ‘Areglo’ department averaged the
highest and the lowest respectively. The results, which
noticeably have high differences, imply that each
department differ in the shoe making process in terms of
techniques, strategies, and level of difficulty.
4. The Labor Productivity of the Selected Respondents in GD
Top Shoe Shop Subcontractor, San Mateo, Rizal

The analyses imply that the labor productivity of
the selected respondents in GD Top Shoe Shop
Subcontractor depends greatly on the workers themselves
as they were the ones controlling their working time and
shoe production. The ‘Sukat’ and ‘Areglo’ department
averaged the highest and the lowest respectively.
5. The Significant Relationship between the Key Performance
Indicators and the Labor Productivity of the Selected
Respondents in GD Top Shoe Shop Subcontractor, San
Mateo, Rizal
5.1 There is no significant relationship between the
employee – employer relationship and the labor
productivity of the selected respondents in GD Top
Shoe Shop Subcontractor. The findings found a
positively low relationship between the
variables, therefore, the null hypothesis is
accepted.
fringe benefits and the labor productivity of the
selected respondents in GD Top Shoe Shop
Subcontractor. The findings found a positively low
relationship between the variables, therefore,
the null hypothesis is accepted.

work environment and the labor productivity of the
Subcontractor. The findings found no relationship
between the variables, therefore, the null
hypothesis is accepted.
work ethics and the labor productivity of the

Acknowledgement
The researchers would like to express their deepest
gratitude to the following individuals who helped them
throughout the process:
Mrs. Maria Teresa S. Angeles, administrative head of FEU
Roosevelt Rodriguez, for allowing the researchers to conduct
the study;
Mrs. Marife D. Baliwas, as Research adviser, for her
immeasurable guidance, drive, and all-out support which lead
the researchers to success;
Mr. Felipe A. Mallabo, as Research consultant, for his
academic support, helping the researchers to improve their
paper and be better;
Mrs. Rosana D. Alarilla, Ms. Marie Grace M. Azurin, Mr.
Felipe A. Mallabo, and Mr. Hernanie A. Tan, as panelists, for
scrutinizing this research paper with forbearance and for
their recommendations and suggestions intended for the
improvement of the study;
Grade 12 – Accountancy, Business, and Management (ABM)
teachers, for providing the researchers empathy, wisdom, and
motivation which they seek from time to time;

Mr. John Jeric Dela Paz, as owner of GD Top Shoe Shop
Subcontractor, for his warm welcome and permission in
carrying out the study in their shop, providing the
researchers an avenue to explore what needs to be on their
own;
The selected workers of GD Top Shoe Shop Subcontractor,
as the research respondents, for their time, unwavering
patience and effort, and most especially, their willingness
to participate in the study and cooperate with what the
researchers need, even more than eager to instill knowledge
in the researchers’ minds;
The parents of the researchers, for their utmost support
and understanding extended to the researchers during the time
the research was being conducted; and finally
Above all, to God Almighty, for His unending grace.
JAC, KZDC, HAE, IJG, SMG, ABP, JRR, AMS

Dedication
This study is dedicated first and foremost to GD Top Shoe
Shop Subcontractor, for the betterment of the business and
for the benefit of its workers.
To the researchers’ families, teachers, and friends who had
their backs during the journey, they owe their success to
all of you.
And last but not the least,
To God Almighty, the one with the greatest prominence, who
made all impossible possible, they lift all glory and honor
up in His name.
TABLE OF CONTENTS
TITLE PAGE ............................................ i
APPROVAL SHEET ........................................ ii
ABSTRACT .............................................. iii
ACKNOWLEDGEMENT ....................................... iv
DEDICATION ............................................ v
CHAPTER
I. THE PROBLEM AND ITS BACKGROUND
Background of the Study ........................ 1
Theoretical and Conceptual Framework ........... 7
Statement of the Problem ....................... 10
Hypothesis ..................................... 12
Significance of the Study ...................... 12
Scope and Delimitation ......................... 14
Definition of Terms ............................ 15
II. REVIEW OF RELATED LITERATURE AND STUDIES
Review of Related Literature ................... 17
Review of Related Studies ...................... 30

III. RESEARCH DESIGN AND METHODOLOGY
Methods of Research ............................ 35
Locale of the Study ............................ 35
Respondents of the Study ....................... 36
Research Instruments ........................... 37
Data Gathering Procedure ....................... 39
Statistical Tools and Treatment of Data ........ 40
IV. PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
The results, interpretation, and analysis of the
data gathered by the researchers ............... 42
V. SUMMARY, CONCLUSION, AND RECOMMENDATION
Summary ........................................ 55
Conclusion ..................................... 58
Recommendation ................................. 61
REFERENCES ............................................ 63
APPENDICES
A. Letter of Permit to the Administrative Head and
GD Top Shoe Shop Subcontractor’s Approval to
Conduct .......................................... 67
B. Research Instruments: Time Card and Survey
Questionnaire .................................... 69
C. Photographs Taken During the Study ............... 73
D. The Satisfaction Rating of the Selected
Respondents on the Key Performance Indicators .... 76
CURRICULUM VITAE ...................................... 78

LIST OF TABLES AND FIGURES
List of Tables
Table 1.1 The Satisfaction Rating of the Selected
Respondents on the Employee – Employer
Relationship .............................. 42
Table 1.2 The Satisfaction Ratings of the Selected
Respondents on the Fringe Benefits ........ 43
Respondents on the Work Environment ....... 44
Respondents on the Work Ethics ............ 45
Table 2 Average Working Time of the Selected
Respondents by Department ................... 47
Table 3 Average Shoe Production of the Selected
Respondents by Department ................... 48
Table 4 Labor Productivity of the Selected
Respondents ................................. 49
Table 5.1 The Significant Relationship between the
Employee - Employer Relationship and the
Labor Productivity of the Selected
Respondents ............................... 50
Fringe Benefits and the Labor Productivity
of the Selected Respondents ............... 51
Work Environment and the Labor Productivity
of the Selected Respondents ............... 52
Work Ethics and the Labor Productivity of
the Selected Respondents .................. 53
List of Figures
Figure 1 Model of Theoretical/Conceptual Framework of
the Study .................................. 10

1
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Background of the Study
Shoes are considered one of the basic outfits a person
wears. It does not only complete the whole get up, but most
importantly, it provides comfort to the human feet. Typically
made of leather, these accompany the students and teachers
everyday as these are paired with their daily uniforms. On
top of that, shoes may vary in size, material, color, and
style, but nonetheless, they have one common denominator –
they aim to provide protection.
In a different perspective, American actress Winona
Ryder believes that a woman’s choice of dressing, especially
footwear, speaks volumes about her personality. “What you
wear - and it always starts with your shoes - determines what
kind of character you are,” City Times (2013) quoted Ryder as
saying. A person’s choice is sometimes the mirror of what
he/she is, and what he/she does. Truly, every look can give
an insight into one’s personality, especially their footwear,
not only in women, but in gentlemen too.
Remembering what Korean author Seo Min Hyun (2009) has
to say, “Good shoes take you to good places.” Looking back,

2
it is hard to imagine what life was like when shoes weren’t
discovered yet. It all started with people’s real and
practical need to protect the feet from outside effects. This
seemingly simple human need turned into a quickly growing
industry in which nowadays, design was just as important as
functionality. Before, shoes are made by craftsmen. But
today, they have become a part of factory industries earning
huge amounts of money as years passed by (Dolita shoes, 2018).
Picone (2013) narrated that through archeological and
paleoarcheological evidences, experts were able to
hypothesize that shoes were invented around in the Middle
Paleolithic period approximately 40,000 years ago. However,
it wasn’t until the Upper Paleolithic period that footwear
was consistently worn by populations. The earliest shoe
prototypes were soft, made from wraparound leather, and
resembled either sandals or moccasins.
Sinking your bare feet into warm, sun-kissed sand on the
beach can be a stress buster. However, unknown to everyone,
working without shoes on could turn out to be disastrous.
Sometimes, people tend to walk around barefoot in the gym, in
the locker room, and at home. Street children even run with
their naked feet outdoors. In situations like these, bacteria

3
enter the body and cause infections, even resistant to
antibiotics in some cases (Marcus, 2018).
Keeping in mind what the proverb always says, the first
wealth is health; and with this problem comes a solution. In
the Philippines, Marikina City, located along the eastern
border of Metro Manila, is popularly known as the “Shoe
Capital of the Philippines” because of its production of
quality shoes. Even the former first lady Imelda Marcos was
once their patron. Endo (2019) explained that Marikina took
a turn for the worse around 2000, when cheap shoes began
pouring out of China's large factories and showing up on
Philippine streets. In 2010, unable to compete on price, many
Marikina workshops were insolvent. Many could not make ends
meet and gave up the business. People began saying Marikina's
shoe industry was dead.
Marikina City greatly influenced its neighboring towns
most particularly San Mateo, Rizal. It did not have a hard
time adapting its strengths. Later on, the shoe-manufacturing
industry in San Mateo started to grow and prosper. Though not
as popular as Marikina shoes, products from this 1st class
municipality still show honor, as these are now being shipped
to different places all over the Philippines (Dela Paz, 2019).

4
Beaming with pride is GD Top Shoe Shop Subcontractor, a
shoe-manufacturing business whose products are well-known
around the province of Cebu by the brand “Alex Shoes”. Located
in Guitnang Bayan, San Mateo, Rizal, GD Top (2019) claimed
that in their twenty-nine (29) years of service, their status
swells every year. Vicente Dela Paz Jr., its first proprietor,
played a very pivotal role in the success and progress of the
shoe industry in San Mateo, Rizal.
Footwear manufacturing all over the world has evolved
from a cobbler’s craft to a massive industry, with key
sourcing countries presenting unique offerings and their own
spin on the shoe. Picone (2013) further said, in the 20th
century, the face of footwear changed extremely from decade
to decade. Their coloring, materials, and designs have
transformed drastically over thousands of years. These days,
there are shoes for every occasion, mood, and preference.
Celebrities like Lady Gaga have introduced the world to
footwear that’s more art and armadillo than it is clothing.
If footwear trends continue in this fashion, everyone can
expect the shoes of the future to be even more out-of-this-
world.
5
However, though everyone considers shoes as a daily
necessity, no one ever seems to wonder how these footwear
that everyone goes crazy about are produced.
As explained by Richard Castro and Victor Dela Paz
(2019), workers of GD Top, a pair of shoe goes through certain
stages in the process of shoe-manufacturing before eventually
being sold to the market. To craft a shoe,
A. First, the skin would be curved and cut into the shape
desired. This stage requires skill because any flaw
would be costly; the materials often used are expensive
thus workers try to keep wastes at a minimum.
B. Then, the sewing processes would take place wherein
every component of the ‘upper’ would be sewed together.
Along with this is the addition of eyelets where the
shoelaces would enter.
C. Next would be the lasting and making department which
mainly deals with the molding of finished uppers into
the shape of the foot, as well as adding the plastic
shapes and soles which stimulates the foot shape.
D. And finally, the finishing stage would be in-charge with
the trimming of heels, polishing and buffing of soles,

6
making sure that all edges are waxed, waterproofed,
stained, and polished.
Today, there is serious competition in the shoe-
production industry. There are hundreds of shoe-manufacturing
companies in the Philippines and around the world. Breaking
even in this industry will require a lot of hard work,
capital, and creativity to make it happen
(ProfitableVenture.com, 2019).
Any effective and successful business understands the
importance of productivity in the workplace. Labor
productivity, or sometimes referred to as workforce
productivity, is defined by Rouse (2014) as an assessment of
how efficient a worker is. It may be evaluated in terms of
the output of an employee in a specific period of time.
Being productive can help the firm increase and utilize
the capacity of the human resources it has. Most productive
companies have happy and healthy employees, which are the
basis of a successful organization, Core (2015) affirmed.
The employees themselves are an investment, and like any
investment, they should yield a healthy or worthwhile return
to the company, Core (2015) supplemented. When employees are
highly productive, it results to the company achieving its
goals of investing in them in the first place. Productivity

7
also helps to motivate the workplace culture and boost morale,
producing an even better company environment. Moreover,
productivity in the workplace will often translate into good
customer service and interaction. This total client
experience is the key to satisfy clients and to gain customer
loyalty; and when a customer is loyal to the business, they
will share their experience with others, which will then be
a marketing advantage.
This, all in all, gave a push to the researchers to seek,
determine the Key Performance Indicators and its effect on
the labor productivity of shoe-manufacturing businesses.
Theoretical and Conceptual Framework
The Philippine manufacturing industry remains to be the
most important sector for long-term productive employment,
value-added generation, and innovation. It has the highest
multiplier effect to the economy compared to other sectors.
Manufacturing is called the engine of the economy. Many
services exist because of manufacturing; and many service
jobs will disappear if manufacturing disappears.
Manufacturing can generate employment opportunities to
vocational graduates apart from the university graduates.
Manufacturing also brings in newer technologies, which can

8
introduce quality jobs, skills and expertise in the country
(Boi Gov Ph, 2017).
The people keep the business running. That being so,
their welfare and ongoing training are essential for optimum
productivity and profitability.
In consonance with Gartenstein (2019), the company's
well-being hinges on its productivity. The more it is able to
produce per hour, the lower the production costs and the
higher the bottom line. Many changes that affect the
efficiency of labor don't cost a cent, so these are great
starting places if one is ready to tighten up operations.
Korm (2011) noted that pay was either the most important
motivator of performance or a significant influence, but
other factors also contributed, such as personal possession
and motivating incentives. Personal possession included
knowledge and skills, commitment, and responsibility and
accountability. Motivating factors included working
environment and resources, as well as honoring incentives,
promotion, attraction of retirement fund, family support, and
supplementary allowances. Contrarily, there were factors
contributing to poor performance including shortage of human
resource, patron-client relationships, time pressure, and
overload of job assignments.

9
Ethics, on the other hand, refers to accepted standards
of right and wrong in the organizational scenario. According
to Palchoudhury (2016), in professional life, the ethical
choices made by individuals affect their quality of work. The
code of ethics affects the behavior of an individual in the
workplace. The entire work culture of an organization depends
on the moral values of both the employer and the employee. An
ethical work environment is highly motivating and is bound to
increase productivity. Organizations with highly valued and
ethical workforce have always been highly productive and have
carved a niche for themselves in the business world.

10
Shoe-manufacturing Businesses in San Mateo, Rizal

(GD Top Shoe Shop Subcontractor)
KEY PERFORMANCE INDICATORS
Employee - Employer
Relationship
Fringe Benefits
Work Environment
Work Ethics
Average Working Average Shoe

Time of the Production of the
Selected Selected
Respondents Respondents
Labor Productivity
Figure 1. Model of Theoretical and Conceptual Framework
The research paradigm represents the Key Performance
Statement of the Problem
This study aims to determine the Key Performance
11
questions:
1.4 Work Ethics?
Mateo, Rizal?
San Mateo, Rizal?

12
Hypothesis
The researchers were able to formulate a null hypothesis
stated as:
There is no significant relationship between the Key
selected respondents in GD Top Shoe Shop Subcontractor, San
Mateo, Rizal.
Significance of the Study
manufacturing businesses. This may serve as a basis and a
guide to certain people and may bring developments to the
following:
1. Choosing what business to put up may be a mind-boggling
decision to make. This research paper serves as an open
opportunity for the incoming subcontractors to broaden
their knowledge on what a shoe-manufacturing business is
all about and why they shall consider this as a great
investment. Also, this would serve as a handbook to these
people on how to successfully start up this kind of
business and what strategies could be used in order to
maintain it operational over the years.

13
2. Such approach would be a good read to the subcontractors
of today. This study shall guide these business owners
on what circumstances the workforce will produce more,
benefiting the profitability of the business yet
satisfying the workers’ needs at the same time. After
all, the people are a company’s greatest asset.
3. Shoe workers may find this study to their advantage as
well. It is not unknown to everyone that some workers,
if not all, have their personal concerns or hopes with
regard to the way they are treated in the workplace.
Thus, this study would love to be their voice in
emphasizing what they need in order to perform more
fruitfully, which will radiate positive indications of
a successful enterprise.
4. A major beneficiary of this study is the shoe industry
itself. The growth of the individual shoe-manufacturing
businesses shall make waves and create a domino effect
which results to the growth of the whole. The findings
of the research may present solutions and shall be a
bridge towards a better economy, thus a better country.
5. Last but not the least, the future researchers will be
able to get a reference material should they decide to
conduct a research close to this subject.

14
Scope and Delimitation
The several Key Performance Indicators will be delimited
to four (4): Employee - Employer Relationship, Fringe
Benefits, Work Environment, and Work Ethics. These are the
ones that came out as a result of the interviews and
observations conducted by the researchers themselves.
From a totality of 43 workers, 12 workers, 30% of the
whole population were utilized, 2 from each stage of the shoe-
making process. The selected respondents will come from the
chosen locale: GD Top Shoe Shop Subcontractor, a shoe-
manufacturing shop based in Guitnang Bayan, San Mateo, Rizal.
The researchers will focus on the selected respondents’
time started and time ended, with the time consumed in breaks
deducted, and the pairs of shoes finished in a day in
accordance with the study’s aim to attain the respondents’
labor productivity.
The study is conducted under a limited time of twenty-
eight (28) days and the findings shall determine whether the
variables are relevant to each other or not.

15
Definition of Terms
The following are the terms used in this study and are
defined operationally:
Employee - Employer Relationship. A Key Performance
Indicator that shows whether the workers are in good
relationship with the owner and are being treated with
equality and equity or not.
Fringe Benefits. A Key Performance Indicator that
pertains to the benefits given by the owner such as
professional support, leave benefits, rewards, retirement
support, and health care and life insurances.
Key Performance Indicators. These are the factors that
influence the workers’ productivity. Employee - Employer
Relationship, Fringe Benefits, Work Environment, and Work
Ethics are those that are used in the study.
Labor Productivity. This is the ratio of the selected
respondents’ output and input; whereas the output is the
average shoe production and the input is the average working
time the workers produced and consumed.
Work Environment. A Key Performance Indicator that is
concerned with the cleanliness, smell, space, noise, safety
mechanisms, and ventilation of the place the workers work at.

16
Work Ethics. A Key Performance Indicator that tells
whether the worker observes right conduct - being friendly,
punctual, willing, optimistic, and mature - when in the work
place.
17
CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
Herewith are the review of related literature and
studies read by the researchers and are hereby presented.
Related Literature
The reviews of related literature read by the
researchers in undertaking this study are hereby presented.
Local Literature
Cabrido (2018) stresses out about women’s impulsiveness
in buying shoes being associated to her wanting to be
confident and glamorous. With comfortable and beautiful shoes
is one important accessory to a woman. And because of this,
it could make a better business idea too. If women are serious
with their shoes, this could mean that a shoe business is
also a serious business.
The shoe industry landscape in the Philippines was
described as a mix of international and local brands, Janilyn
Shoes (2018) mentions in their blog. But, while there is a
wealth of foreign makes in the market, locally crafted shoes
continue to thrive alongside, if not outperform them, thanks
to the local shoemakers who also evolve along with the
changing demands for quality footwear.

18
Janilyn Shoes (2018) further narrates the history of the
local shoe industry, as it was traced back to Marikina, a
city in Metro Manila, during 1887, when Don Laureano Guevara,
fondly called Kapitan Moy, first discovered the art of
shoemaking after fixing his pair of imported shoes. Since
then, Guevara saw to it that shoemaking will become an
additional source of income — aside from farming, fishing and
wooden clogs making — by passing on the knowledge required
for the craft to generations. Fast forward to 1891, Marikina
flourished as a source of quality handmade shoes, with about
15 shoe factories to boast. It was not until then that the
city was hailed the largest manufacturer of shoes in the
country, thus earning the title of being the Shoe Capital of
the Philippines. At the height of its glory days, Marikina
was responsible for the 70% of shoe production in the country.
Endo (2019) story-tells on the other hand how Marikina,
being once known as Southeast Asia's leading center for
shoemaking, fell into decline with the arrival of cheaper
Chinese shoes two decades ago. Fortunately, there were signs
of revival as internet-savvy entrepreneurs like Juancho Del
Rosario, a 25-year-old shoe enthusiast, breathe new life into
the business by taking advantage of online opportunities to
boost sales.
19
Endo (2019) also unfolds the truth about Marikina
benefiting from a famous -- some would say notorious --
patron: Imelda Marcos, wife of former President Ferdinand
Marcos. The former first lady, who is known for her
extravagant tastes, once had a collection of 3,000 pairs of
shoes, many of which were made in Marikina. When she travelled
abroad, she made a point of wearing them to promote the city
as a center of the Philippine footwear industry.
In 2001, corresponding to Janilyn Shoes (2018), the Shoe
Museum — then called the Footwear Museum of Marikina - was
opened to the public to promote the art of shoemaking. It was
later followed by a Guinness Book of World Records Title in
2002 after producing the world’s largest pair of shoes at
5.29m long and 2.37m wide.
If looking for sturdy and stylish footwear to strut with,
these locally-made shoes that dominate the fashion scene in
the Philippines when it comes to shoes, sandals, and
everything footwear must be checked-out, Philippine Primer
multimedia publication (2016) asserts:
Started in 1977, Rusty Lopez is one of the trusted local
brands when it comes to shoes and is known for its product
quality as they produce men, women, kids, school, sporty, and
formal footwear line;

20
As the first flip flop concept store in the Philippines,
Banana Peel produces “ultra-chic, athletic, and classic flip
flops”;
Tagged as “The Premier Shoe Brand in the Philippines,”
Figlia started in 1986 from a family of Marikina artisans.
The label produces comfortable pumps, sandals, boots, flats,
sneakers, and shoes which are all classy and affordable;
Another would be Gibi, a footwear brand that produces
men’s ladies’ and children’s shoes which are sturdy,
fashionable, and classic;
Chic, affordable, and comfy – that’s what best describes
Parisian shoes. These ladies’ footwear has become a favorite
for every Pinay because of the wide variety of footwear
products they offer. From flats to heels, one can never go
wrong with Parisian’s collections; and
Lastly, this brand is best for the sports-minded shoe
collector - World Balance offers popular active-lifestyle
shoes for men, women, and kids.
On another note, Beltran (2017) acknowledges an
unfortunate fact unknown to most; shoe factories usually
follow a piece-rate basis in which the worker is paid based
on the quantity of his or her output. Given the unstable

21
employment in the industry, daily wages received by the
workers are not enough to compensate for the level of
intensity that their labor requires.
Aside from lack of compensation, Clarissa Badong, a
consultant for Marikina Shoe Industry Development Office
(MASIDO), also laments the extreme heat shoemakers must
endure in the cage-like environment in the workplace.
Consequently, workers lose their sense of dignity in their
jobs, Beltran (2017) snarls in addition.
Lucero (2019) narrates that sales teams can be motivated
in a number of ways. Typically, sales organizations motivate
reps with a combination of monetary and non-financial
incentives.
Monetary sales team motivation, as Lucero (2019)
defines, does exactly what its name says — motivate sales
reps with financial incentives. Examples of monetary
motivation include bonuses, Sales Performance Incentive Funds
(SPIFs), and Management-Based Objectives (MBOs).
He also specifies contrarily that non-financial sales
team motivation often engages tangible gifts that reps either
compete to win or work towards throughout the fiscal year.
Examples of non-financial incentives include entertainment
tickets (concerts, sporting events, etc.), Airbnb/travel

22
vouchers, electronics (iPad, eReader, etc.), and spa/massage
days.
Lucero (2019) therefore concludes that motivated sales
teams perform better. The right incentives and pay mix have
a huge impact on performance, and companies need to realize
that to succeed.
Foreign Literature
Maffetone (2015) explains that for millions of years,
the human foot has been either bare or covered with very
simple footwear to protect the bottoms of the feet. For most
of humanity, shoes were made straight with left and right
being identical. For centuries, shoemakers kept secret the
measurements of their client’s feet to help assure continued
business. Today, a similar approach is evident, as one size
does not fit all the same.
Maffetone (2015) further elaborates that shoe styles
have come to a wide range of choices as years passed by.
Boots, clogs, lace-ups, and moccasins are some. Monks,
similar to lace-ups, belong too. The rest were mules, pumps,
and sandals, with the two latter mentioned being one of the
most popular today.

23
He additionally imparts that the manufacturing of shoes,
especially sneakers and so-called sport or athletic shoes
produced by big companies, are accomplished in third world
countries – such as the Philippines - because it is very
cheap, often a dollar per pair or less.
Likewise, Flanagan (2019) states that there are several
aspects in learning how to start one’s own shoe company, from
licensing to advertising, that need to be taken into
consideration:
The shoe market is a wide field. One will need to start
by defining its niche. In addition, a business plan will help
one form a concrete strategy out of the idea.
Flanagan (2019) further states that an aspirant needs to
determine if he/she will start the shoe business from scratch
or buy a franchise. Of course, choosing a good location for
the store will increase the chances for success. Moreover,
the staffs to be hired shall represent the shoe store brand,
as they are the main brand ambassadors of the company to the
customers.
One great way for a much rapid growth is making use of
the internet, Flanagan (2019) affirms as well. A website is
a great advertising medium for one’s shoe business. It helps

24
the customers easily browse the selection of shoes and buy
them from the comfort of their home.
Decker (2019) points out that when one is in the business
of manufacturing a product, it's hard to see factories as
anything but a positive: they create jobs, bring prosperity
and, most importantly, create the product that is the
lifeblood of the company.
If one is planning to open a new factory, it's important
to remember that residents and regulators near the proposed
facility may have more of an eye toward its disadvantages
than its advantages. Understanding both sides of the
situation can help one prepare for the pushback. Therefore,
Decker (2019) enumerates its pros and cons:
One of the primary advantages of factories as Decker
(2019) testifies is that even a relatively small one is an
engine that generates economic activity. The factory itself
may source some of its materials locally.
Another advantage would be, a manufacturing job was the
gold standard for blue-collar success — a skilled and well-
paid job that provides a comfortable living. Nevertheless,
that isn't necessarily the case anymore with automation and
technology reducing both the number of manufacturing jobs and
the skills they require (Decker, 2019).

25
Conforming with Decker (2019), an obvious potential
disadvantage of a factory however, is its impact on the local
environment. Depending on what you manufacture and how you
manufacture it, the by-products of that process may pollute
the local soil, water, or air.
Manufacturers seek many of the same objectives, but the
main goal is typically to produce the best products possible
at the lowest costs.
Benge (2019) claims that profitable businesses seek
customer satisfaction and shoe manufacturing is no exception.
Meeting quality standards is high on shoe manufacturers'
objective lists. They establish a repeat customer base by
ensuring that the quality of the shoes produced meets the
standards expected by consumers.
Unfortunately, Berliner, et al. (2015) explains that
subcontractors could pay the workers whatever rates they
wanted, often extremely low. The owners supposedly never knew
the rates paid to the workers, nor did they know exactly how
many workers are employed at their factory at any given point.
Berliner et al. (2015) further attests into the bargain
that workers throughout the world continue to toil in unsafe
conditions for low wages, long hours, and few benefits if
any. They suffer preventable diseases from overwork and

26
exposure to chemicals and toxins. Some are effectively
enslaved and others are subject to sexual harassment. Where
unions are weak or illegal, the collective voice of labor is
curtailed.
Without the incentives necessary to encourage government
actors to actively commit to upholding labor standards,
victories on factory floors are likely to be sporadic, issue
specific, and tenuous, Berliner et. Al. (2015) deems.
Known to most, low compensation can not only hinder
motivation and performance, but can actually create vengeful
employees. But, higher financial rewards lead to lower
performance. In reliance with Sundheim (2013), studies have
shown that paying an employee too much can have adverse
effects on their work performance. As a matter of fact, they
tend to generate less output than fairly paid workers.
When one hires and motivates the right people, the right
work gets done in the right way; the machine functions
smoothly. Sundheim (2013) asks: how can hiring managers, head
hunters, and HR representatives ensure that their hires stay
focused, productive and engaged?
Sundheim (2013) appends that recruiting minimums also
makes employees highly motivated. These include pay, working
conditions, and job security. Rather than money, studies have

27
shown that how creative an employee feels when working on a
project is the strongest and most pervasive driver.
However, as Sundheim (2013) corroborates, imposing too
many laws, rules and formal processes will often impede the
ability to motivate staff. The more set a process is, the
less likely it is going to get done correctly.
The people keep the business running, so their well-
being and ongoing training are essential for optimum
productivity and profitability, Gartenstein (2019) backs up.
Gartenstein (2019) adds, healthy employees show up to
work physically able to do their jobs with focus and stamina.
Investing in health insurance and employee wellness add costs
in the short term, but the company will likely reap the
benefits of these expenditures with increased productivity
and improved quality of work.
Workers who enjoy their jobs are likely to work well and
efficiently and even collaborate to find better ways to
perform basic tasks.
Gartenstein (2019) assures, one can also invest in their
education by funding learning programs geared toward factors
that affect efficiency of labor.

28
Performance objectives in production focus on efficient
use of raw materials and labor to meet goals in production
rates. Machinery and equipment need to operate at optimal
levels without excessive downtime or failure (Benge, 2019).
The shoe manufacturing industry is highly competitive;
it thus makes meeting performance objectives critical for
success.
DeBenedetti (2012) specifies that quality is about
keeping shoe defect rates, scrap, and other forms of waste at
a minimal level and is a critical performance objective.
Without quality, it is hard to build a positive brand name,
retain customers, or win new ones. The raw materials and the
sophisticated machines used to create footwear are tested on
a regular basis to ensure quality.
He further classifies sustainability and refers to it as
being conscious of one’s environment. There are CO2 emissions
and other harmful side effects associated with shoe
production. Without the proper safeguards, manufacturers can
pollute the environment and damage the communities in which
they operate. For these reasons, public opinion can sway
against manufacturers that harm the environment, which can
hurt sales.
29
In a shoe-manufacturing business, there is one thing of
great value but sometimes taken little attention to: its
people. Harness (2018) identifies employees as assets of a
company as much as a company's product or service portfolio;
and, they can make or break a company. As such, a company
should invest in its employees but also expect to get a return
on that investment through their employees' productivity.
Harness (2018) expounds employee productivity, also
called workplace productivity, as an assessment of an
employee's or a group of employees' efficiency. It is
evaluated by looking at the total workforce or employee output
in a given time. In most cases, the productivity of an
individual will be assessed in comparison to the average
output of other employees doing similar work.
Any effective and successful business understands the
importance of productivity in the workplace. Being productive
can help the firm increase and utilize the capacity of the
human resources it has. Most productive companies have happy
and healthy employees, which are the basis of a successful
organization, Core (2015) infers.
The employees themselves are an investment, and like any
investment, they should yield a healthy or worthwhile return
to the company. Therefore, when employees are highly

30
productive, the company achieves its goals of investing in
them in the first place, Core (2015) elucidates. Productivity
also helps to motivate the workplace culture and boost morale,
producing an even better company environment. More often than
not, when a firm is highly productive, it eventually becomes
successful, and because of this, incentives are bound to be
made available to the employees. These include pay raises,
bonuses, medical insurances, and so on. This will also
motivate employees and give them more job opportunities as
the company grows. Productivity in the workplace is an
important aspect of every company and when top management
understands this concept, success is just around the corner.
Related Studies
The following are the review of related studies read by
the researchers and are hereby presented.
Foreign Studies
Parvin & Rounok (2012) figured out that human resource
is an important and indispensable part of a business
organization. Qualified workers ensure greater productivity.
Strengthening employee performance ultimately benefits the
company.
31
Parvin & Rounok (2012) stressed that motivation is a key
determinant of job performance. If the employees are poorly
motivated, then there will be excessive staff turnover and
negative morale which will increase cost. Therefore,
management spends much time to know what exactly stimulates
their staff so that resources are not misused. There is a
tremendous research on motivation. Many literatures on
motivation have been reviewed and have been found that
traditionally, it was believed that money or extrinsic reward
can boost performance.
In concordance with Agba, et al. (2013), the challenge
of getting maximum performance from employees remained a
perennial problem to managers in Nigeria. This challenge is
aggravated by the great division that exists among managers
on which the motivational factors stimulate workers more into
higher performance; while some tilt to monetary incentives,
many more argue that non-monetary incentives are major
motivating factors.
Elicited data presented in the study conducted by Agba,
et al. (2013) showed that a number of factors significantly
affected the workers’ job performance in Nigeria. Top on the
list was regular and good remuneration, followed by conducive
work environment. Other factors in relation to their degree

32
of influence on workers’ job performance are availability of
internet facilities, good library, recognition/award, regular
promotion, training opportunities, access to medical care,
and communication flow. These findings corroborate with
existing literatures and theories on employee motivation and
job performance in Africa and elsewhere in the world.
Many enterprises limit their productivity enhancement of
employees to the acquisition of skills. However, Samuel
(2010) insisted that about 86% of productivity problems
reside in the work environment of organizations. The work
environment has effect on the performance of employees. The
type of work environment in which employees operate at
determines the way in which such enterprises prosper.
The results of the study carried out by Samuel (2010)
indicated that employee productivity problems are within the
work environment. Conducive work environment stimulates
creativity of workers. Improvement in work environment and
bad working conditions contribute to the productivity of
employees.
Employees are very important assets that the
organization has, Sarode & Shirsath (2014) emphasized on
their study. A good organization is one that can nurture its

33
employees. And, one technique to nurture the employees is by
paying attention to the office environment.
Sarode & Shirsath (2014) tackled the four factors of the
office environment under which has an impact on employee
productivity. They are: lighting, noise, color, and air
quality. All of these factors cannot be treated separately,
as they connect with each other. For instance, even though
the lighting system of the office is desirable as it meets
employee needs, the noise in the office still has to be
maintained to ensure that employees can work in favorable
sound. An adequate lighting system, noise, color, as well as
air quality can impact employees both physically and
psychologically. Some health problems that may occur are
headaches, as a result of poor lighting system and undesirable
noise, respiratory problems as a consequence of poor air
quality, fatigue as a result of inappropriate selecting of
color, and so forth. In the long term, these problems will
impact the financial well-being of the organization.
In consonance with this, Gregory (2011) deduced that
employee satisfaction is essential to the success of any
business. A high rate of employee contentedness is directly
related to a lower turnover rate; thus, keeping employees

34
satisfied with their careers should be a major priority for
every employer.
Many reasons for employee dissatisfaction are well
within the control of the firm including high stress, lack of
communication within the company, lack of recognition, and
limited opportunity for growth; good management practices
will enable a company to diminish or remove those reasons.
Satisfied employees will work harder for the company and plan
to stay at the company, ultimately reducing that company’s
labor costs, Gregory (2011) capped off.

35
CHAPTER III
RESEARCH DESIGN AND METHODOLOGY
Methods of Research
The researchers used the descriptive method in
determining the Key Performance Indicators and its effect on
Espinosa (2016) and Uy, et al. (2016) defined
descriptive method or descriptive research in their
respective books, both entitled “Practical Research 2”, as a
method involving the collection of data to either test a
hypothesis or describe the variables mentioned in the study.
They likewise characterized it as a method that uses
questionnaires and interviews to gather data about a group of
people.
Locale of the Study
This study was carried out at FEU Roosevelt Rodriguez,
a non-sectarian private school located at Lardizabal Street,
Manggahan, Rodriguez, Rizal. Dating back to 2016, it was a
very fortunate year for Roosevelt College Inc., - the name
the institution was formerly known – as they have been named
a proud member of the Far Eastern University (FEU) group of
schools.
36
As part of their vision, Far Eastern University has been
giving its sister school, FEU Roosevelt Rodriguez, its
continuous support as the school strives to impart a well-
rounded education by providing their students functional
facilities to work with – a new built 4-storey senior high
school building inclusive of an elevator, adequate comfort
rooms per floor, two (2) learning hubs, two (2) computer
rooms, and air conditioned-classrooms provided with glass
boards and built-in speakers to name a few - as they both
climb further towards quality experience.
For the past years since its founding, Far Eastern
University has produced great and humble professionals in
different fields of expertise; with the guidance of the school
head, Mrs. Maria Teresa S. Angeles, FEU Roosevelt Rodriguez
is now on their way to do the same.
The research process itself took place however in GD Top
Shoe Shop Subcontractor, the group’s chosen shoe-
manufacturing business. This has been established since year
1990 in one of the oldest settlements in the province of
Rizal, San Mateo, in Guitnang Bayan in particular.
Respondents of the Study
The respondents of the study were factory workers of the
shoe-manufacturing business under observation: GD Top Shoe

37
Shop Subcontractor. The workers were divided into six (6)
departments namely: ‘Sukat’, ‘Areglo’, ‘Tahi’, ‘Lapat’,
‘Swelas’, and ‘Finishing’. From each department, two (2)
representatives were selected, resulting to a totality of
twelve (12) respondents.
The purposive sampling technique was used in selecting
the respondents of the study. The selection of the samples
was based on practical specifications, such as their
availability, readiness, and the department they belong to.
The workers who now serve as respondents expressed their
willingness to spend their time and take part in the data
gathering process beforehand.
Research Instruments
The instruments used in the study are as follows: data
gathering through observation and interview, a time card, and
a survey questionnaire.
The observation, side by side with the interview, let
the researchers know about the history and background of the
chosen shoe-manufacturing business, as well as how the owners
run the business operations, helping them decide on what Key
Performance Indicators to include and should take part in the
study.
38
The 6-columned and 35-rowed time cards printed in vellum
boards are used in keeping track of the workers’ records
regarding the time they started and ended work, the times
they temporarily stopped to have lunch and breaks, and the
number of shoes they have finished for the day. The
information gathered through this will serve its purpose upon
the computation of the selected respondents’ average working
time and average shoe production, concluded by their labor
productivity.
Lastly, survey questionnaires were disseminated to serve
as an evaluation of the respondents’ satisfaction with their
experiences in the workplace. These questionnaires contain
twenty (20) questions - 5 questions per KPI. To interpret the
satisfaction rating of the selected respondents with regard
to the Key Performance Indicators, the following scale value
was used:
Scale Value Level
5 Strongly Agree
4 Agree
3 Neutral
2 Disagree
1 Strongly Disagree
39
Data Gathering Procedure
Before the researchers were able to push through with
the study, they first sought for permission through a formal
letter addressed to the administrative head of FEU Roosevelt
Rodriguez to be able to conduct their study outside the school
premises. The group then consulted their research adviser,
Mrs. Marife Baliwas, to oversee if there were aspects needed
to be amended, revised, or omitted for the betterment of the
study.
The researchers began doing progress. They made a
personal visit at GD Top Shoe Shop Subcontractor to request
for the owner’s authorization of letting them conduct their
study with their business as the research subject, and their
factory workers as main respondents. Upon getting the nod,
the researchers went along with the initial observance of the
workplace. There, the researchers gained knowledge on the
subject they are about to dive into.
Understanding truly what the flow would be, the
researchers took action quickly. The group made revisions on
some part of the paper, specifically on the title and the
statement of the problem.
As tasked, the researchers assembled together to
construct the time cards; the following day, with the help of
40
the business owner, the researchers distributed and explained
them to the selected respondents. From this time until it
reaches twenty-eight (28) days, the respondents take
responsibility for the completion of the instrument.
The researchers collected the data over a period of one
month. Every day, the whole group gathered information from
the individual respondents. By the end of the observation
period, the group constructed questions for the purpose of
survey questionnaires which then underwent repeated checking
and validation, ensuring its fitness to the study. On the
last day of the data gathering period, each one from the group
handed out the prepared questionnaires to the selected
respondents and collected it right after.
Finally, the researchers tabulated, analyzed, and
interpreted all the data gathered and presented the results
and findings in tabular form.
Statistical Tools and Treatment of Data
The following were the statistical tools used to analyze
and define the data in this study:
1. Mean – This was used to get the average working time and
the average shoe production of the twelve (12)
respondents in GD Top Shoe Shop Subcontractor.

41
∑𝑥
Formula: 𝑥̅ = 𝑁
2. Weighted Mean – This was used to get the average
satisfaction rating of the selected respondents with
regard to the Key Performance Indicators suggested by
the study.
∑𝑤ƒ
Formula: 𝑥̅ = 𝑁
3. Labor Productivity – This was used to measure the
manufacturing productivity of the selected respondents
in GD Top Shoe Shop Subcontractor.
Formula: Productivity = Output/Input
4. Pearson Product Moment Correlation – This was used to
determine the relationship between the Key Performance
Indicators and the selected respondents’ labor
productivity.
𝑛 ∑ 𝑥𝑦− ∑ 𝑥 ∑ 𝑦
Formula: 𝑟 =
√𝑛 ∑ 𝑥 2 − (∑ 𝑥)2 √𝑛 ∑ 𝑦 2 − (∑ 𝑦)2
42
CHAPTER IV
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
This chapter presents, analyzes, and interprets the data
gathered by the researchers.
Table 1.1
The Satisfaction Rating of the Selected Respondents on
the Employee - Employer Relationship
Statement W.M. V.I.

1. The owner and I have a good relationship
with each other that is why I am motivated to 3.83 Agree
do my job well.
2. When failures and shortcomings occur, the
owner does not belittle and encourages me 3.67 Agree
instead to do better next time.
3. The way the owner treats me as a worker is
4.00 Agree
right and just.
4. The owner gives compliments every time I
3.83 Agree
do well at work.
5. The owner treats every worker fairly. 3.58 Agree
Average Mean 3.78 Agree
Table 1.1 presents the satisfaction rating of the
selected respondents on the employee - employer relationship.
The selected respondents agreed on all specified statements,
garnering an average of 3.78, inferring that the employees
are very much in good terms with their employer. They agreed
on being motivated due to this, and agreed on receiving
encouragements and compliments, as well as on being treated

43
right, just, and fair or equal to all the workers working
under the management.
Given the data above, it implied that the workers in GD
Top Shoe Shop Subcontractor sustain a favorable relationship
with the owner. And by doing so, the shoe-manufacturing
business had fulfilled its goals as reflected by sales and
their business’ longevity, reaching 29 years in the
manufacturing industry as of this year.
Table 1.2
the Fringe Benefits
Statement W.M. V.I.

1. I am given a professional support such as
3.25 Neutral
a job training.
2. I am entitled to leave benefits like sick
leave, maternity/paternity leave, vacation 2.75 Neutral
leave, and emergency leave.
3. I receive rewards like cash, in kind, and
2.33 Disagree
recognition.
4. I am entitled of a retirement support such
2.08 Disagree
as a pension plan.
5. I am given health care and life insurances
2.58 Neutral
as part of my rights as a worker.
Average Mean 2.60 Neutral
selected respondents on the fringe benefits. The workers were
neutral about receiving a professional support, enjoying
leave benefits, and being granted of an insurance plan and of

44
medical help. However, with a weighted mean of 2.33 and 2.08,
the respondents disagreed on receiving rewards and
recognition and being entitled of a pension plan as a
retirement support.
In conclusion, it implied that the workers in GD Top
Shoe Shop Subcontractor receive just enough fringe benefits,
somehow satisfying them still. This indicates that the
business owners still have things to suffice as part of their
jobs as employers, and as part of the rights of their
workforce. Also, this determines GD Top’s unaligned
operations to the legal policies implemented in the country.
Table 1.3
their Work Environment
Statement W.M. V.I

1. The workplace is clean and organized. 2.58 Neutral
2. I am comfortable with the smell of the
2.58 Neutral
workplace.
3. The working space available in the
workplace is enough for me to work 3.00 Neutral
productively.
4. The noise around me does not disturb me
3.42 Neutral
while working.
5. The workplace has complete safety
mechanisms like fire exits, fire
3.25 Neutral
extinguishers, doors are locked, and is
well-ventilated.
45
selected respondents on their work environment. The selected
respondents exhibited neutrality on all specified statements,
inferring that they were neutral about the cleanliness,
organization, availability of safety mechanisms, and
ventilation of the workplace. They were also neutral about
being comfortable with the smell, the working space, and the
noise surrounding them every day while at work; thus receiving
an average of 2.97.
This implied that the work environment in GD Top Shoe
Shop Subcontractor is pleasant and safe, just enough to cater
the workers’ satisfaction and needs. On the contrary, these
numbers display a large room for improvement, as their work
place’s security and comfort do not work at an optimum yet.
Table 1.4
their Work Ethics
Statement W.M. V.I.

1. I am friends with all of my co-workers. 4.17 Agree
2. I always go to work early and on time. 3.67 Agree
3. I do the tasks assigned to me immediately
4.17 Agree
and willingly.
4. I always display a positive attitude when
4.17 Agree
working.
5. I accept the criticisms and suggestions of
3.42 Neutral
others open—mindedly.
46
selected respondents on their work ethics. This table showed
that four (4) out of the five (5) respondents agreed with
statements. The workers agreed that they are friends with
their co-workers, they always went to work early and on time,
do assigned tasks immediately and willingly, and displayed a
positive attitude while working. Resulting to a weighted mean
of 3.42 however, the workers were neutral about accepting
criticisms and suggestions from others open-mindedly.
From these information one may imply that the workers in
GD Top Shoe Shop Subcontractor have overall good work ethics.
As a result, they have been an effective worker which then
constituted as to why the quality of the products the shoe-
manufacturing business produces is at its best. Being a
consistent shoe supplier in Cebu just showed how successful
GD Top is, and it was partly because of its amiable and
hardworking assets – its manpower.

47
Table 2
The Average Working Time of the Selected Respondents by
Department
Respondents
Department Average
1 2
5 Hours and 25 5 Hours and 59 5 Hours and 42
Sukat
Minutes Minutes Minutes
Areglo
Tahi
11 Hours and 36 9 Hours and 27 10 Hours and
Lapat
Minutes Minutes 32 Minutes
Swelas
Finishing
Table 2 presents the average working time of the selected
respondents by department. In a month, the respondents’ time
of work from the ‘Sukat’ department averaged 5 hours and 42
minutes, the least among the six (6) departments. The
‘Areglo’ and ‘Tahi’ departments on the other hand averaged
higher, with 9 hours and 12 minutes and 9 hours and 52 minutes
respectively. The ‘Lapat’ department worked for the most
number of hours, at 10 hours and 32 minutes. Both the ‘Swelas’
and Finishing department consumed 8 hours, however, they
differ in minutes as the latter was 9 minutes longer.

48
This implied that the working time of the workers in GD
Top Shoe Shop Subcontractor do not follow the regular working
hours as stated in the law. The workers have the freedom to
decide what time they will be coming to work, as well as to
when they’ll be going home. The workers worked at their own
pace and at their own convenience. In conclusion, GD Top does
not look into how long the workers will perform, as long as
they will accomplish all the tasks entrusted unto them before
the deadline arrives.
Table 3
The Average Shoe Production of the Selected Respondents
by Department
Respondents Average
Department
1 2 (Pairs Per Day)
Sukat 56 137 97
Areglo 10 10 10
Tahi 45 121 83
Lapat 24 20 22
Swelas 87 45 66
Finishing 61 56 58
Table 3 presents the average shoe production of the
selected respondents by department. The ‘Sukat’ department
produced the most number of pairs, finishing an average of
97. The ‘Areglo’ department contrarily averaged the least

49
with 10. The ‘Tahi’ department averaged 83, followed by the
‘Lapat’ department with 22. The last two departments are the
‘Swelas’ and Finishing, which accomplished 66 and 58 pairs at
an average accordingly.
This implied that the average shoe production of the
selected respondents in GD Top Shoe Shop Subcontractor
differed from one another. This is because of the variations
of each department in the required process, level of
difficulty, and even in their respective techniques, though
all are aiming for a much faster production.
Table 4
The Labor Productivity of the Selected Respondents
Average
Department
(Pairs Per Hour)
Sukat 16
Areglo 1
Tahi 8
Lapat 2
Swelas 7
Finishing 7
Table 4 presents the labor productivity of the selected
respondents. The ‘Sukat’ department averaged the highest with
16. The ‘Areglo’ department conversely averaged the least
with only a pair per hour. The ‘Tahi’ department averaged 8,

50
while the ‘Lapat’ department averaged 2. Furthermore, the
‘Swelas’ and Finishing departments reflected the same
numbers, a labor productivity of 7 pairs per hour.
After several calculations and analyses, the labor
productivity of the selected respondents in GD Top Shoe Shop
Subcontractor varies depending on the workers’ working time
and shoe production. Since the workers do not have
restrictions, the choice is theirs on how long they will work,
and the choice on how productive they will be depends upon
them also.
Table 5.1
The Significant Relationship between the Employee -
Employer Relationship and the Labor Productivity of the
Selected Respondents
Computed Critical
Variables Average Decision
r - Value r - Value
Employee -
Employer 3.78 Accept the
Relationship r(12,0.05) =
0.14 null
0.576
Labor hypothesis
7.24
Productivity
Table 5.1 presents the significant relationship between
the employee - employer relationship and the labor
productivity of the selected respondents. The computed r -
value resulted to 0.14, declaring the relationship of the two

51
variables as positively low. The computed r - value is clearly
less than the critical r – value of 0.576, therefore, the
null hypothesis is accepted.
Based on the figures shown on the table, this means that
there is no significant relationship between the employee -
employer relationship and the labor productivity of the
selected respondents in GD Top Shoe Shop Subcontractor, and
implied that the workers’ choice to be productive is not
affected by any means the owner treats them.
Table 5.2
The Significant Relationship between the Fringe
Benefits and the Labor Productivity of the Selected
Respondents
Computed Critical
r - Value r - Value
Fringe Benefits 2.60 Accept the
r(12,0.05) =
Labor 0.35 null
7.24 0.576
Productivity hypothesis
the fringe benefits and the labor productivity of the selected
respondents. This table possessed the computed and critical
r – value, whose equivalent is 0.35 and 0.576 accordingly,
manifesting a positively low relationship. The table showed

52
that the computed r - value is less than the latter;
therefore, the null hypothesis is accepted.
With this, there is no significant relationship between
the fringe benefits and the labor productivity of the selected
respondents in GD Top Shoe Shop Subcontractor. This implied
that though stated in the law, the respondents do not consider
the benefits they receive and are entitled to as a basis of
how well they will perform.
Table 5.3
The Significant Relationship between the Work
Environment and the Labor Productivity of the Selected
Respondents
Computed Critical
r - Value r - Value
Work
2.97 Accept the
Environment r(12,0.05) =
-0.08 null
Labor 0.576
7.24 hypothesis
Productivity
the work environment and the labor productivity of the
selected respondents. The computed r – value of -0.08
represented a no relationship between the variables. Since
the computed r – value is less than the critical r – value,

53
The data on the table signify that there is no
significant relationship between the work environment and the
labor productivity of the selected respondents in GD Top Shoe
Shop Subcontractor, and implied that its cleanliness,
orderliness, smell, amount of space, noise, safety
mechanisms, and ventilation did not affect in any way the
workers’ productivity.
Table 5.4
The Significant Relationship between the Work Ethics and
the Labor Productivity of the Selected Respondents
Computed Critical
r - Value r - Value
Work Ethics 3.92 Accept the
r(12,0.05) =
Labor 0.05 null
7.24 0.576
Productivity hypothesis
the work ethics and the labor productivity of the selected
respondents. The computed r – value resulted to 0.05, which
is less than the critical r – value of 0.576; therefore, the
null hypothesis is accepted. This furthermore exhibited a
positively low relationship between the variables.
The data denote that there is no significant
relationship between the work ethics and the labor
productivity of the selected respondents in GD Top Shoe Shop

54
Subcontractor. It implies that the workers’ moral behavior
and conduct has no influence or impact on how abundant the
workers will produce.

55
CHAPTER V
SUMMARY, CONCLUSION, AND RECOMMENDATION
Summary
Manufacturing industries are the chief wealth producing
sectors of an economy. They employ a huge share of the labor
force and produce materials required by sectors of strategic
importance. The researchers have recognized the abundance of
such business in the province of Rizal, shoe-manufacturing
businesses for instance. In this industry and type of
business, the value of human workforce was emphasized and
given a profuse significance. Thus, this study aimed to
determine the Key Performance Indicators and its effect on
questions:

56
1.4 Work Ethics?
Mateo, Rizal?
San Mateo, Rizal?
To provide answers to the questions above, the
researchers used the descriptive method of research, which is
suited in testing hypotheses and making predictions through
measured amounts, ultimately describing an event with the aid
of questionnaires and interviews to gather data about a group
of people. The researchers chose twelve (12) respondents to
work with through purposive sampling technique; these are
workers from the shoe-manufacturing business under study, GD
Top Shoe Shop Subcontractor situated in Guitnang Bayan, San
Mateo, Rizal. The business has six (6) general departments

57
namely ‘Sukat’, ‘Areglo’, ‘Tahi’, ‘Lapat’, ‘Swelas’, and
Finishing, which all had two (2) representatives each.
In order to determine whether the variables are related
or not, the researchers formulated several research
instruments. They disseminated time cards to the selected
respondents, which they have filled out of details with regard
to the total hours they worked and the number of shoes they
finished in a day. Additionally, the group humbly requested
the respondents to convey their thoughts, reactions and
sentiments if there is, through a survey questionnaire
containing twenty (20) statements that tackle the four (4)
Key Performance Indicators: Employee - Employer Relationship,
Fringe Benefits, Work Environment, and Work Ethics.
After twenty-eight (28) days of thorough observation,
the researchers gathered and analyzed all significant data.
They averaged the respondents’ working time and shoe
production according to department. They tested the labor
productivity and the satisfaction rating of the selected
respondents with regard to the Key Performance Indicators
with the Pearson Product Moment Correlation. All four factors
garnered a computed r – value less than the critical r – value
and ranged from no relationship to a positively low
relationship. The findings concluded that there was no

58
significant relationship between the Key Performance
Indicators and the labor productivity of the selected
respondents in GD Top Shoe Shop Subcontractor; therefore, the
null hypothesis was accepted.
Conclusion
In light of the findings of the study, the following
conclusions were drawn:
1. The Satisfaction Rating of the Selected Respondents with
regard to the Key performance Indicators
1.1 The selected respondents agree that GD Top Shoe
Shop Subcontractor has an overall favorable
employee - employer relationship; their business
being a tremendous success for twenty-nine (29)
years already is a testament to this.
1.2 As the selected respondents were neutral, this
portrays the need for GD Top Shoe Shop
Subcontractor to keep up with the standards and
improve in terms of the fringe benefits they offer
to their workforce.
1.3 Resulting to a neutral average, this means that
the safety and pleasantry of the work environment

59
in GD Top Shoe Shop Subcontractor is just enough
for the workers to perform well.
1.4 The selected workers in GD Top Shoe Shop
Subcontractor agree on having overall good work
ethics, creating an environment supported by moral
values. This aspect partly contributes to their
effectiveness in the workplace.
2. The Average Working Time of the Selected Respondents by
Department
The data shows how lenient GD Top Shoe Shop
Subcontractor is in terms of the workers’ working hours.
Having one of the departments averaging less than the 8-
hour regular working hours implies that it does not
matter whether the workers perform for hours less than
they are expected of, as long as they complete the tasks
assigned to them before the deadline arrives.
3. The Average Shoe Production of the Selected Respondents
by Department
The ‘Sukat’ and ‘Areglo’ department averaged the
highest and the lowest respectively. The results, which
noticeably have high differences, imply that each

60
department differ in the shoe making process in terms of
techniques, strategies, and level of difficulty.
4. The Labor Productivity of the Selected Respondents in GD
Top Shoe Shop Subcontractor, San Mateo, Rizal
The analyses imply that the labor productivity of
the selected respondents in GD Top Shoe Shop
Subcontractor depends greatly on the workers themselves
as they were the ones controlling their working time and
shoe production. The ‘Sukat’ and ‘Areglo’ department
averaged the highest and the lowest respectively.
5. The Significant Relationship between the Key Performance
Indicators and the Labor Productivity of the Selected
Respondents in GD Top Shoe Shop Subcontractor, San
Mateo, Rizal
employee – employer relationship and the labor
productivity of the selected respondents in GD Top
Shoe Shop Subcontractor. The findings found a
positively low relationship between the
variables, therefore, the null hypothesis is
accepted.
61
fringe benefits and the labor productivity of the
work environment and the labor productivity of the
Subcontractor. The findings found no relationship
between the variables, therefore, the null
hypothesis is accepted.
work ethics and the labor productivity of the
Recommendation
Based on the conclusions drawn, the following
recommendations were given:

62
To the subcontractors of today and the future, may they
value not only the profit they’ll gain, but the people behind
their future success. May they learn from this study that
fair and just treatment to the workers results to a better
labor productivity. They should maintain good rapport and
effective teamwork and collaboration in and out of the
workplace.
To GD Top Shoe Shop Subcontractor, this study bluntly
laid the aspects needed to be improved on how to fully sustain
its growth. May they improve what needs to be and adapt the
theories and tips for a much more pleasant connection with
everyone.
To the shoe workers, especially those of the shoe-
manufacturing business under study, may they treat this study
as an advantage. Upon knowing how subcontractors run, this
shall serve as a wakeup call to them that they are in fact
the lifeblood of the company. Their productivity dictates the
success of the business; thus their welfare matters the most.
And to the future researchers, they could use the
findings of this study as their baseline data in their coming
research. It is also recommended that they use a larger number
of respondents, and on a bigger company. They could use other
Key Performance Indicators as variables in their study.

63
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67
APPENDICES
APPENDIX A
Letter of Permit to the Administrative Head and GD Top Shoe
Shop Subcontractor’s Approval to Conduct
Mrs. Maria Teresa S. Angeles July 2019

Business Unit Head / Basic Education Director
FEU Roosevelt Rodriguez
Dear Madam,
Greetings!
We, the fifth group of student-researchers from the graduating
class, section ABM A, humbly ask permission from your kind office to
permit our group to conduct a research with regard to the key
performance indicators in a shoe-manufacturing enterprise located in
San Mateo, Rizal.
This study entitled “KEY PERFORMANCE INDICATORS AND ITS EFFECT
ON THE LABOR PRODUCTIVITY OF SHOE-MANUFACTURING BUSINESSES” shall
suffice this year’s partial requirements as prescribed by the school.
Thank you in advance for your favourable response and Godspeed!
Recommended by: Respectfully yours,
______________________ _____________________________
Mrs. Marife D. Baliwas JOMERI ANNE V. CAYETANO
Research Adviser
_____________________________
Noted by: KESSEANE ZAY P. DELA CRUZ
_____________________________
______________________ HONEY ANNE C. ESPIRITU
Mrs. Leonila M. Santos
Department Head, JHS _____________________________
IVAN JEROME C. GARCIA
_______________________ _____________________________
Mrs. Rosana D. Alarilla SARAH MAE F. GONDA
Department Head, SHS
_____________________________
Approved by: ANGELO BRYAN D. PURIFICACION
_____________________________
____________________________ JOHN RICHARD H. RIVERA
Mrs. Maria Teresa S. Angeles
Business Unit Head / _____________________________
Basic Education Direct ALYNNA MARIE A. SOLETA
68
July 11, 2019
Approval to Conduct
I, John Jeric Dela Paz, owner of the shoe-manufacturing
business named GD Top Shoe Shop Subcontractor located in
Guitnang Bayan, San Mateo, Rizal, do approve the researchers’
request for permission to be under observation in accordance
with the completion of their research study. In line with
this is my approval in sharing any information needed by this
specific group of students, but solely for the purpose of the
accomplishment of academic instruments as prescribed by the
school. Confidentiality must be promised to be observed.
______________________________________
JOHN JERIC DELA PAZ
OWNER, GD TOP SHOE SHOP SUBCONTRACTOR
69
APPENDIX B
Research Instruments: Time Card and Survey Questionnaire

70
GD – TOP SHOE SHOP SUBCONTRACTOR
QUESTIONNAIRE
NAME: ______________________________________ DATE: __________
DEPARTMENT: ________________________________
Dear workers, we are currently working on our thesis entitled

“KEY PERFORMANCE INDICATORS AND ITS EFFECT ON THE LABOR
PRODUCTIVITY OF SHOE-MANUFACTURING BUSINESSES”. We are asking you
to please answer honestly the questions. Your answers will be used
for academic purposes only and will be treated confidentially.
Thank you for your cooperation.
The Researchers
Directions: Answer the statements by encircling the most

appropriate given the following scales:
Strongly Strongly
Agree Agree Neutral Disagree Disagree
(5) (4) (3) (2) (1)
I. EMPLOYER-EMPLOYEE RELATIONSHIP
1. The owner and I have a good relationship with each other that
is why I am motivated to do my job well.
(Ako ay mayroong maayos na relasyon sa may-ari kaya ginaganahan
akong gawin ang aking trabaho nang maayos.)
5 4 3 2 1
2. When failures and shortcomings occur, the owner does not

belittle and encourages me instead to do better next time.
(Kapag ako ay nagkamali at nagkulang, hindi ako minamaliit ng
may-ari at sa halip ay pinapalakas niya ang aking loob na
makakagawa ako nang mas maayos sa susunod.)
5 4 3 2 1
3. The way the owner treats me as a worker is right and just.

(Ang pagtrato sa akin ng may-ari bilang isang manggagawa ay
tama at makatarungan.)
5 4 3 2 1
4. The owner gives compliments every time I do well at work.

(Nagbibigay ng pagpuri ang may-ari sa tuwing nakakagawa ako ng
maganda.)
71
5 4 3 2 1
5. The owner treats every worker fairly.

(Ang pagtrato ng may-ari sa bawat manggagawa ay pantay-pantay.)
5 4 3 2 1
II. FRINGE BENEFITS

1. I am given a professional support such as a job training.
(Ako ay binigyan ng suportang propesyunal kagaya ng pagsasanay
sa trabaho.)
5 4 3 2 1
2. I am entitled to leave benefits like sick leave,

maternity/paternity leave, vacation leave, and emergency leave.
(Ako ay nakakatamasa ng mga benepisyo kagaya ng bakasyon sa
pagkakasakit, panganganak, pag-alis, at biglaang
pangangailangan.)
5 4 3 2 1
3. I receive rewards like cash, in kind, and recognition.

(Ako ay nakakatanggap ng mga gantimpala kagaya ng pera,
kagamitan, at pagkilala.)
5 4 3 2 1
4. I am entitled of a retirement support such as a pension plan.

(Ako ay makakatamasa ng suporta para sa pagreretiro kagaya ng
pensiyon.)
5 4 3 2 1
5. I am given health care and life insurances as part of my rights

as a worker.
(Ako ay nakakatamasa ng mga pangkalusugang kasiguraduhan bilang
parte ito ng aking mga karapatan bilang isang manggagawa.)
5 4 3 2 1
III. WORK ENVIRONMENT

1. The workplace is clean and organized.
(Ang lugar na aking pinagtatrabahuhan ay malinis at organisado.)
5 4 3 2 1
2. I am comfortable with the smell of the workplace.

(Ako ay komportable sa amoy ng lugar na pinagtatrabahuhan.)
5 4 3 2 1
3. The working space available in the workplace is enough for me

to work productively.
72
(Ang espasyong nakalaan para sa akin sa lugar na

pinagtatrabahuhan ay may sapat na kalakihan upang ako ay
makapagtrabaho at maging produktibo.)
5 4 3 2 1
4. The noise around me does not disturb me while working.

(Ang mga ingay sa aking paligid ay hindi nakakaistorbo sa aking
paggawa.)
5 4 3 2 1
5. The workplace has complete safety mechanisms like fire exits,

fire extinguishers, doors are locked, and is well-ventilated.
(Ang lugar na aking pinagtatrabahuhan ay kumpleto sa mga pag-
iingat at kagamitang pangkaligtasan gaya ng fire exit, fire
extinguisher, ang mga pintuan ay naisasara nang maayos, at
mayroong maayos na temperatura.)
5 4 3 2 1
IV. WORK ETHICS

1. I am friends with all of my co-workers.
(Kaibigan ko ang lahat ng aking mga ka-trabaho.)
5 4 3 2 1
2. I always go to work early and on time.

(Ako ay palaging pumapasok sa trabaho nang maaga at nasa oras.)
5 4 3 2 1
3. I do the tasks assigned to me immediately and willingly.

(Ginagawa ko agad ang mga iniuutos sa akin nang bukal sa aking
loob.)
5 4 3 2 1
4. I always display a positive attitude when working.

(Ako ay palaging nagpapakita ng positibong pag-uugali sa
trabaho.)
5 4 3 2 1
5. I accept the criticisms and suggestions of others open-

mindedly.
(Tinatanggap ko ang mga puna at mungkahi ng iba nang bukas-
isip.)
5 4 3 2 1
___________________________________
SIGNATURE OVER PRINTED NAME
73
APPENDIX C
Photographs Taken During the Study

74
75
76
APPENDIX D
The Satisfaction Rating of the Selected Respondents on the
Key Performance Indicators
Employee – Employer Relationship
Weights
Statement W.M. V.I.
5 4 3 2 1
1. The owner and I have a good
relationship with each other
4 5 1 1 1 3.83 Agree
that is why I am motivated to do
my job well.
2. When failures and
shortcomings occur, the owner
does not belittle and encourages 2 6 2 2 0 3.67 Agree
me instead to do better next
time.
3. The way the owner treats me
4 4 4 0 0 4.00 Agree
as a worker is right and just.
4. The owner gives compliments
3 4 5 0 0 3.83 Agree
every time I do well at work.
5. The owner treats every worker
3 4 3 1 1 3.58 Agree
fairly.
Fringe Benefits
Weights
Statement W.M. V.I.
5 4 3 2 1
1. I am given a professional
2 4 2 3 1 3.25 Neutral
support such as a job training.
2. I am entitled to leave
benefits like sick leave,
maternity/paternity leave, 1 4 1 3 3 2.75 Neutral
vacation leave, and emergency
leave.
3. I receive rewards like cash,
0 2 4 2 4 2.33 Disagree
in kind, and recognition.
4. I am entitled of a retirement
1 1 3 0 7 2.08 Disagree
support such as a pension plan.
5. I am given health care and
life insurances as part of my 1 3 1 4 3 2.58 Neutral
rights as a worker.
77
Work Environment
Weights
Statement W.M. V.I.
5 4 3 2 1
1. The workplace is clean and
2 0 4 3 3 2.58 Neutral
organized.
2. I am comfortable with the
1 2 3 3 3 2.58 Neutral
smell of the workplace.
3. The working space available
in the workplace is enough for 1 3 4 3 1 3.00 Neutral
me to work productively.
4. The noise around me does not
1 4 6 1 0 3.42 Neutral
disturb me while working.
5. The workplace has complete
safety mechanisms like fire
exits, fire extinguishers, 2 3 4 2 1 3.25 Neutral
doors are locked, and is well-
ventilated.
Work Ethics
Weights
Statement W.M. V.I.
5 4 3 2 1
1. I am friends with all of my
4 6 2 0 0 4.17 Agree
co-workers.
2. I always go to work early and
2 5 4 1 0 3.67 Agree
on time.
3. I do the tasks assigned to me
6 2 4 0 0 4.17 Agree
immediately and willingly.
4. I always display a positive
4 6 2 0 0 4.17 Agree
attitude when working.
5. I accept the criticisms and
suggestions of others open— 2 4 4 1 1 3.42 Neutral
mindedly.
78
CURRICULUM VITAE
Name: Jomeri Anne V. Cayetano
Nickname: Jhodi
Birthday: December 10, 2001
Age: 18 years old
Birthplace: Marikina City
Address: Blk 3 Lot 40 Ph 1 Montebrisa
Main St. Manggahan

Rodriguez, Rizal
Email Address: jomeri.enna@gmail.com
Father: Geronimo J. Cayetano
Mother: Diana V. Cayetano
Educational Background:
Elementary: Virgen del Pilar School and Roosevelt
College Inc. – Rodriguez Campus
Secondary:
Junior High School: Roosevelt College Inc. –
Rodriguez Campus
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:
- 1st Honorable Mention, Elementary Level

- With Highest Honors, Secondary Level
- Advancement Officer, RCRSSM S.Y. 2017-2018
- Boy Scout of the Philippines Eagle Scout
- Grade 10 Representative, Student Council S.Y 2017-2018
Course Preference: BS Accountancy
Ambition: To live life to the fullest and with no regrets.
Motto: “Aal izz well.”
79
CURRICULUM VITAE
Name: Kesseane Zay P. dela Cruz
Nickname: Kz
Birthday: September 6, 2001
Age: 18 years old
Birthplace: Marikina City
Address: Blk 10 Lot 11 MR Ville
Subdivision Guitnang Bayan I

San Mateo, Rizal
Email Address: kzdc27@gmail.com
Father: Michael C. dela Cruz
Mother: Maria Alnies P. dela Cruz
Elementary: Roosevelt College Inc. - San Mateo Campus
Secondary:
Junior High School: Roosevelt College Inc. - San
Mateo Campus
- With Honors, Secondary Level

Course Preference: BS Doctor of Dental Medicine
Ambition: To be a doctor suddenly.
Motto: “Vibe with it.”
80
CURRICULUM VITAE
Name: Honey Anne C. Espiritu
Nickname: Honey Anne
Birthday: June 6, 2002
Age: 17 years old
Birthplace: San Jose, Del Monte,
Bulacan
Address: Blk 2 Lot 14 Portobello Homes
Bankers Village Phase 9 Kanan

San Mateo, Rizal
Email Address: honeyanneespiritu@gmail.com
Father: Florentino A. Espiritu
Mother: Anita C. Espiritu
Elementary: Guitnang Bayan Elementary School
Secondary:
Mateo Campus
Course Preference: BS Hotel and Restaurant Management
Ambition: To be a successful chef someday.
Motto: “There will be hard days but they won't last.”
81
CURRICULUM VITAE
Name: Ivan Jerome C. Garcia
Nickname: Romeh
Birthday: May 8, 2002
Age: 17 years old
Birthplace: Quezon City
Address: Blk 6 Lot 5 Benson Ville
Subdivision Dulong Bayan 2

San Mateo, Rizal
Email Address: garciajerome123145@gmail.com
Father: Joseph S. Garcia
Mother: Dolores C. Garcia
Elementary: SSS Village Elementary School
Secondary:
Mateo Campus

- Grade 10 Representative, Math Club S.Y 2017 - 2018
Course Preference: BS Hotel and Restaurant Management
Ambition: To be a successful chef.
Motto: “If you do not believe in yourself, no one will do
it for you. – Kobe Bryant”
82
CURRICULUM VITAE
Name: Sarah Mae F. Gonda
Nickname: Sarah
Birthday: December 3, 2001
Age: 18 years old
Birthplace: Cainta, Rizal
Address: Blk 18 Lot 70 Ph 2 Summit View
Subdivision Brgy. San Rafael

Rodriguez, Rizal
Email Address: gonda.sarahmae@gmail.com
Father: Ruperto SP. Gonda
Mother: Susie F. Gonda
Elementary: Cainta Elementary School and Eulogio Jr.
Rodriguez Elementary School
Secondary:
Junior High School: Eastern Valley School and
Infant Jesus Learning Academy

Course Preference: BS International Travel and Tourism
Management
Ambition: To be a Flight Attendant.
Motto: “Strive for progress, not perfection.”
83
CURRICULUM VITAE
Name: Angelo Bryan D. Purificacion
Nickname: Wowo
Birthday: November 20, 2001
Age: 18 years old
Birthplace: Rodriguez, Rizal
Address: Block 13 Lot 22 Cordillera St.
Metro Montaña Village Burgos

Rodriguez, Rizal
Email Address: abryanpurificacion@gmail.com
Father: Eliezar A. Purificacion
Mother: Arlene D. Purificacion
Elementary: Valley High Academy
Secondary:
Junior High School: Roosevelt College Inc. –
Rodriguez Campus
- With High Honors, Secondary Level

- Executive Senior Crew Leader, RCRSSM S.Y. 2017-2018
- President, RCI – R Interact Club
- Trainor, RCI – R SLK Club
Course Preference: BS Marine Transportation
Ambition: To be the Captain of a ship.
Motto: “To love not until it hurts, but to love even though
it hurts.”
84
CURRICULUM VITAE
Name: John Richard H. Rivera
Nickname: Richard
Birthday: February 15, 2001
Age: 19 years old
Birthplace: Manila
Address: Blk 1 Lot 1 A Metro Royale
Homes Subdivision Burgos

Rodriguez, Rizal
Email Address: richardhrivera123@gmail.com
Father: Arnold C. Rivera
Mother: Lourdes H. Rivera
Elementary: Gain Christian Academy
Secondary:
Junior High School: Virgen del Pilar School

Course Preference: BS Tourism
Ambition: To be a successful person.
Motto: “For everything there is a season and a time for
every activity under the heaven.”
85
CURRICULUM VITAE
Name: Alynna Marie A. Soleta
Nickname: Lynna
Birthday: June 29, 2001
Age: 18 years old
Birthplace: Mandaluyong City
Address: Blk 7 Lot 24 St. Joseph St. La
Mar Village Guitnang Bayan 2

San Mateo, Rizal
Email Address: alynnasoleta0629@gmail.com
Father: Alfonso E. Soleta
Mother: Marilyn A. Soleta
Elementary: Nuestra Señora De Aranzazu Parochial
School
Secondary:
Mateo Campus

Course Preference: BS Tourism
Ambition: To be a successful flight attendant.
Motto: “Prove them wrong.”

ABM A Cayetano

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KEY PERFORMANCE INDICATORS AND ITS EFFECT ON THE

LABOR PRODUCTIVITY OF SHOE-MANUFACTURING

A Research Paper Presented to Mrs. Marife D. Baliwas, MAED

In Partial Fulfillment of the Requirements for

Jomeri Anne V. Cayetano Sarah Mae F. Gonda

Kesseane Zay P. dela Cruz Angelo Bryan D. Purificacion

Honey Anne C. Espiritu John Richard H. Rivera

Ivan Jerome C. Garcia Alynna Marie A. Soleta

FEU ROOSEVELT RODRIGUEZ, SED

This research entitled, “KEY PERFORMANCE INDICATORS AND

Accepted and approved in partial fulfillment of the

TITLE: KEY PERFORMANCE INDICATORS AND ITS EFFECT ON THE LABOR

PRODUCTIVITY OF SHOE–MANUFACTURING BUSINESSES

SCHOOL: FEU Roosevelt Rodriguez

Secondary Education Department

RESEARCHERS: Jomeri Anne V. Cayetano, Kesseane Zay P. dela

Cruz, Honey Anne C. Espiritu, Ivan Jerome C.

Garcia, Sarah Mae F. Gonda, Angelo Bryan D.

Purificacion, John Richard H. Rivera, Alynna

RESEARCH ADVISER: Mrs. Marife D. Baliwas

RESEARCH CONSULTANT: Mr. Felipe A. Mallabo

DATE DEFENDED: February 20, 2020

This study aimed to determine the Key Performance

Indicators and its effect on the labor productivity of shoe-

More specifically, it sought answers to the following

1. What is the satisfaction rating of the selected

respondents with regards to the Key Performance

Indicators in terms of:

1.2 Fringe Benefits?

1.3 Work Environment?

1.4 Work Ethics?

2. What is the average working time of the selected

3. What is the average shoe production of the selected

4. What is the labor productivity of the selected

respondents in GD Top Shoe Shop Subcontractor, San

5. Is there any significant relationship between the Key

Performance Indicators and the labor productivity of the

selected respondents in GD Top Shoe Shop Subcontractor,

San Mateo, Rizal?

The researchers chose GD Top Shoe Shop Subcontractor, a

shoe-manufacturing business located in Guitnang Bayan, San

Mateo, Rizal, and got its factory workers as main respondents;

the workers were divided into six (6) departments namely:

‘Sukat’, ‘Areglo’, ‘Tahi’, ‘Lapat’, ‘Swelas’, and Finishing.

Two (2) respondents were selected from each department,

researchers formulated research instruments that would

measure the labor productivity and the satisfaction rating of

the selected respondents with regards to the Key Performance

Indicators suggested by the study. The time cards, along with

the observation and interviews, were administered in the

factory for twenty-eight (28) days. Survey questionnaires

were then disseminated to assess how satisfied the

respondents were of their workplace. After which, all of the

data were evaluated and checked by the researchers

themselves. They then tabulated the results and computed for

the mean, weighted mean, labor productivity, and Pearson’s

product moment correlation to determine the significant

relationship between the Key Performance Indicators and the

labor productivity of the selected respondents.

The major findings of the study were summarized below:

1. The satisfaction rating of the selected respondents with

regards to the Key Performance Indicators are as