COMPARATIVE ANALYSIS BETWEEN MONETARY AND NON-MONETARY

BENEFITS AND INCENTIVES OF PLMAR BSHM WORKING STUDENTS

A Research Paper presented to the College of Bachelor of Science in Hospitality Management

Pamantasan ng Lungsod ng Marikina

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Hospitality Management

Submitted/Presented by:

Valerie Ann A. Arboleda

Karen G. Balawang

Charles Joshua De Dios

Ray John Enoy

Kennedy B. Gaddi

Cier Jaspher C. Galinato

Kimberly Hipolito

Kent Ichiro Kavano

Anna Micaella Magpantay

Joana Marie G. Robles

Aubrey S. Samonteza

2023
 TABLE OF CONTENTS

TITLE PAGE….………………………………………………………………….……..I

TBLE OF CONTENTS ….………………………………………………………….… II

CHAPTER I- THE PROBLEM AND ITS BACKGROUND

Introduction …………………………………………….……………………………. 1

Review of Related Literature ……………………………………............................... 2

Theoretical Framework ……………………………………………………...………. 7

Conceptual Framework ………………………………………………...…………… 9

Statement of the Problem …………………………………………...………………. 10

Hypothesis ………………………………………………………...………………… 11

Significance of the Study ………………………………………...…………………. 11

Operational Definition of Terms …………………………………….……………… 12

CHAPTER II- METHODOLOGY

Research Design …………………………………………..………………………... 13

Participants……….……………………..……………………………………………13

Data Gathering Procedures…………………………………………………………...14

Data Analysis……………………………………………..………………………….. 15

References ……………………………………………..…………………………….. 16
 1

CHAPTER I
The Problem and its Background

Introduction

The pursuit of higher education and the quest for financial independence have become

increasingly entwined in an era marked by dynamic economic environments and changing

educational paradigms. For students pursuing a degree in hotel and restaurant management,

juggling the responsibilities of school and work is especially important since they want to obtain

real-world experience while learning the subtleties of their chosen sector. This overlap of academic

and professional responsibilities raises an important question: What kinds of financial and non-

financial benefits and incentives do working students in the Bachelor of Science in Hotel

Management (BSHM) program at Pamantasan ng Lungsod ng Marikina (PLMAR) receive, and

how do these factors affect their academic performance and general well-being.

This comparative analysis explores the varied difficulties and benefits that PLMAR

BSHM working students must overcome. It explores the tension that working students experience

as they pursue higher education between financial incentives, such as pay and scholarships, and

non-financial ones, like possibilities for skill development and personal growth. The goal of the

study is to clarify the intricate interactions between these two categories and identify any potential

effects on students' academic performance and general quality of life.

This research project aims to offer useful insights for educational institutions, companies,

and policymakers to better understand the particular needs and experiences of working students as

we navigate the worlds of academics and professional growth. The comparative analysis of

financial and non-financial incentives and benefits among PLMAR BSHM working students
 2

ultimately aims to contribute to the larger conversation about enhancing the educational experience

and assisting the future workforce, enabling them to succeed in a constantly changing world.

REVIEW OF LITERATURE AND STUDIES

Review Related Literature

Incentives are defined as the utilized tools by organization leadership to recognize and

provide structured compensation for their respective teams. Incentives can be moral or financial

and can be performance based, or time based. Flat bonuses (additional incentives) based on

achievements are another type of incentive that is widely used in professional organizational

settings. The first type of incentive is monetary. Financial incentives, which are defined as

tangibles which provide support in satisfying human needs, encourage employees to do their best,

and increase the level of their competencies such as through prompt payment of salaries, bonuses,

allowances, profit-sharing and one-time rewards. Financial incentives may take the form of a lump

sum payment, monthly installments, or any other form of compensation that generates more

revenue for employees, such as bonuses. Financial incentives are distinguished by their rapid and

immediate effect, which gives employees direct feedback on their efforts and performance

(Alkandi et. al., 2023)

Non-monetary reward includes training and development, pleasant work environment and

working conditions, furnished office, official colleague i.e. personal assistant or secretary,

preferred lunch hours and personal visiting cards (Habib et. al., 2017
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According to (Planning W, 2023) Monetary rewards are the most common and tangible

form of recognition for employees. They can include salary increases, bonuses, commissions,

profit-sharing, stock options, and other financial incentives. Non-monetary rewards are the

intangible and psychological aspects of recognition for employees. They can include praise,

feedback, recognition, autonomy, flexibility, learning opportunities, career development, and other

forms of support and appreciation. Non-monetary rewards can enhance employees' sense of

belonging, purpose, and satisfaction. They can also foster a positive work culture, loyalty, and

engagement.

The location is the main reason for completing the tasks, the work environment includes

the physical geographical location as well as the immediate surroundings of the workplace, such

as a construction site or office building (Massoudi & Hamdi, 2017). It usually includes other

factors related to the workplace, such as air quality, noise level, perks, and fringe benefits for work

like free childcare, unlimited coffee, or adequate parking.

Monetary Benefits are financial incentives often used by employers to encourage workers

to meet their goals. Money, being a symbol of power, status, and respect, plays a major role in

meeting a person's social – security and physiological needs. Yet money seizes to be a motivator

when the psychological and safety needs are met. At that point, it becomes a maintenance factor;

as per Herzberg (Bhasin, 2017).

(Mays, 2020) states that by definition, non-monetary incentives are any items or

experiential rewards given in an incentive program as a result of an employee's performance, which

can easily be assigned a monetary value. In general terms, measurable benefits are items or events

where compensation is monetary rewards. According to (M.T.I Events, 2020), non-monetary

 4

benefits are more memorable, they tend to be valued more than they cost, they are easier to separate

from pay, they are especially attractive to gen-z and millennial employees, are easier to talk about

and they have emotional value.

(Karen et. al., 2015), Employees can be guided by performance evaluation measures

accomplishing organizational objectives. The study highlights the need or necessity of an

appropriate working environment since it allows for both efficient performance evaluation and

efficient worker results. The experiment's findings show that positive psychology, which is gaining

popularity, may be applied in the workplace. The survey also provides more information regarding

workers' positive and holistic workplace perspectives, as well as their supportive and open work

settings. It also investigates the impact of findings related to a worker's achievement. The findings

show that workplace culture influences the relationship between employee retention, job

satisfaction, PMS, and self-reported performance.

Review Related Studies

The main objective behind providing incentives is to motivate employee to provide best of

his abilities. Incentives like flexible work hours, payroll or premium contributions, training, health

savings or reimbursement accounts, or even paid sabbaticals are equally important. These are

called non-monetary incentives. When organizations pay attention to non-monetary tools such as

opportunity of increasing holiday and family benefits, the employee may perceive the organization

as a supporting and caring organization. Rewards are important factors that explain certain job

aspects that contribute significantly to the organization such as job satisfaction (Chauhan, 2015)

Although financial incentives are thought to be a powerful motivator for workers, there are

some things that money simply cannot purchase. According to the MASLOW'S Theory of Need
 5

Hierarchy, money incentives initially play a larger role, but once the physiological (food, water,

shelter, clothing, and sleep) and safety needs (health, employment, property, family, and social

stability) are met, the other needs—love and belonging (friendship and sense of connection), self-

esteem (confidence, achievement, respect from others, and the need to be unique individuals—as

well as self-actualization—become more important. This essay aims to do research on the

significance of non-financial advantages in inspiring and fostering employee loyalty to the

organization. The paper also aims to make an empirical study and assess the strategic function of

the non-monetary incentives during the economic downturn or during the time of crisis when the

cash inflows are limited or when there is a requirement to maintain larger profit margins.

According to the results of the analytical study, highly motivated workers help a company maintain

it’s most devoted and loyal workers, thus various non-financial incentives must be implemented.

Non-monetary rewards might be very motivating and aid in boosting self-assurance and

satisfaction. (J Jyothi, 2016)

Conducted an analysis of a number of studies on how salary and benefits affect workers'

performance. He came to the conclusion that, despite widespread belief to the contrary, monetary

compensation is not the most crucial factor in enhancing individuals' job performance. Once more,

this is untrue because prior to (Premuzic, 2013), (Judge et. al., 2010) discovered that there is only

a weak correlation between compensation and work satisfaction. (Premuzic, 2013) quoted

(Blackmsith and Harter, 2011) for a result that there was no discernible difference in employee

engagement by wage level. The results suggest that enhancing employee performance and

engagement involves more than merely monetary reward and other related incentives, but other

factors must be given attention. Work performance and work engagement are also about workplace

treatment. (Premuzic, 2013)

 6

(Miller, 2016) emphasizes that the recent acceleration of economic growth has According

to new research by the Society for Human Resource Management (SHRM) and other recent

studies, employees' expectations of higher pay and more generous benefits have increased in recent

years. As SHRM Online reported ("Survey: Respect at Work Boosts Job Satisfaction"), overall

employee satisfaction is at its highest level in 10 years, with 88 percent of employees stating that

they are happy with their jobs. The 2016 Employee Job Satisfaction and Engagement Survey by

SHRM, which was conducted in late 2015 and released on April 18, provided the data. The top

three factors listed for determining job satisfaction were compensation/pay, benefits, and respectful

treatment of workers at all levels. More employees are attempting to make up for lost salaries and

bonuses from the 2008–2009 crisis, the years of sluggish development that followed–a time also

characterized by rises in health care premiums and decreases in employee benefits.

The importance of compensation for both individual workers and the one of an

organization's largest costs is its organization. The field of pay may be crucial to an organization's

success or failure in terms of sustained competitive gain, and the traits of the workforce and how

they interact serve as the foundation for strategic planning and execution. A compensation plan

should be determined by policy, structure, and employee involvement, according to the research

by Cummings and Worley. It should also be a key component of how HR (Human Resource)

education practitioners create an organization and train staff members. However, there seems to

be dispute among scholars regarding whether pay-for performance (PFP) programs in which there

is a direct relationship between an employee's performance results and their compensation reward

should be used in organizations as a compensation strategy to enhance organizational performance

or whether they are inherently ineffective or even counterproductive in that role. (Kang & Lee,

2020
 7

Theoretical Framework

Training and
Development

Rewards & Motivation Employee

Recognition Performance

Delegation of
Authority (Power)

Figure 1: Dr. S. Vimal (January 2, 2023)

Training and Development

Training is thought to be crucial to the development of human capital. According to

Oforegbunam et al. (2010), it might be characterized as the means of transportation that gets an

organization to its destination in a predetermined amount of time. Hence, they continued by saying

that any organization must train and retrain its human resources in accordance with its nearby and

distant operating environments if it is to thrive in the competitive business world. Focusing on

strengthening and developing its human resource base is the most crucial choice for responding to

environmental dynamics.

Rewards & Recognition

The effectiveness of tangible incentives in boosting performance for previously

uncompleted tasks, the impact of rewards and recognition on employee motivation, and the

importance of intrinsic motivation. Broad (2007) demonstrated the effectiveness of tangible

incentives in improving task performance. Rewards, incentives, and recognition play a significant

role in motivating employees. Intrinsic motivation arises when individuals engage in intentional
 8

actions for their own satisfaction and delight. Overall, it explains how incentives and employee

motivation are influenced by rewards and recognition.

Delegation of Authority (Power)

Delegation of authority is a fundamental management concept that involves the transfer of

responsibility and decision-making power from higher-ranking individuals or departments to

lower-level employees or teams within an organization. This process is crucial for effective

organizational functioning as it allows for the efficient distribution of tasks and responsibilities.

Heffernan & Flood (2000). It's crucial to improve employee performance assessment satisfaction.

Seven performance assessment management methods are employed in different sectors. Carefully

assess, equitably allocate, and then discuss each employee's jobs and responsibilities.

Motivation

Motivation has a major role on employee because it can boost employees' morale and

performance. According to Ekundayo (2018), The complexity of factors that propel people to work

harder and be more eager to use their full ability in order to accomplish organizational goals is

known as motivation. Employee performance was mostly impacted by motivation.

Employee Performance

Employee performance has an important role in the company's growth. Improving

employee performance can be done by giving unintended incentives. According to Widhianingrum

(2018), when a firm is attempting to achieve its goals, employee performance is a crucial factor.

Giving inadvertently offered rewards (incentives) to employees is one strategy to maximize

employee performance since it encourages them to work more, which boosts productivity and

performance.
 9

Conceptual Framework

1.Profile of the respondents

1.1 Age
• Determining the
1.2 Sex significant
difference in the
1.3 Occupation assessment
2. The assessment of the between monetary
respondents between and non-monetary
monetary and non- benefits and The Comparative
monetary benefits and incentives of Analysis of Monetary
incentives. PLMar BHSM and Non-Monetary
working student Benefits and Incentives.
2.1 Training and
• Survey
Development
Questionnaire
2.2 Rewards & • Data Gathering,
Recognition Interpretation,
analysis and
2.3 Delegation of authority
(Power) evaluation.

INPUT PROCESS OUTPUT

Figure 2: Input Output Process Method

The diagram above shows the Conceptual framework of the study. It illustrates the

demographic profile of the respondent of which includes the age, sex, and occupation.

Furthermore, the independent variables are the training and development, rewards and
 10

recognition, and delegation of authority or power. On the other hand, the dependent variables are

motivation and employee performance.

In process, the researchers will distribute survey questionnaires to respondents specifically

to the BSHM working students in order to determine the level of assessment between monetary

and non-monetary benefits and incentives.

The output will be the comparative analysis or the difference on the assessment of

monetary and non-monetary benefits and incentives of PLMar BSHM working students.

Statement of the Problem

This study aims to discover the comparative analysis between monetary and non-monetary

benefits and incentives. Henceforth, to find the answer to the following questions:

1. What is the demographic profile of the respondents in terms of the ff:

1.1 age

1.2 sex

1.3 occupation

2. What is the level of assessment of the respondents between monetary and non-monetary in

terms of the following:

2.1 Training and Development

2.2 Rewards & Recognition

2.3 Delegation of authority (Power)

3. Is there a significant difference in the assessment of the respondents on the monetary and non-

monetary benefits and incentives?

4. What other recommendations can be offered based on the results

 11

Hypothesis

Ho: There is no significant difference in the overall perceived satisfaction of PLMAR BSHM

working students based on the type of benefits and incentives received (monetary or non-

monetary)

Hi: There is a significant difference in the overall perceived satisfaction of PLMAR BSHM

working students based on the type of benefits and incentives received (monetary or non-

monetary).

Significant of the Study

Employer - The findings of this study will aid employers by expanding their knowledge

and understanding of the monetary and non-monetary rewards and incentives of PLMAR BSHM

working students and how this affects their performance.

Entrepreneurs - The findings of this study should help them to comprehend some

of the effective benefits and job incentives for future workers, particularly those who apply as

working students.

BSHM / Working Students - This study may serve as a point of reference and guide for

students pursuing similar research.

Job Seekers / Future Workers - this study will be an effective tool and reference for the

future job seekers who would intend to take any further relevant study regarding the topic.

Future Researchers - This study may serve as a reference for them if their topic is related

to this.
 12

Operational Definition of Terms

Training and Development refers to train and retrain the human resources.

Rewards & Recognition refers to tangible incentives that motivates the employees to work and

boosts performance.

Delegation of Authority refers to power to distribute an efficient task and responsibilities.

Motivation refers to a reason for employees to work effectively.

Employee Performance refers to how well employees execute their duties and responsibilities.
 13

CHAPTER II

Methodology

This chapter presents the research design, sample size, the population, the sampling

technique, description of respondents, the research instrument, and statistical tool utilized.

Research Design

To recognize the assessment of this study the researchers will utilize the use of quantitative

research on which focuses to numerical data. According to (Creswell (2014) defines quantitative

research as “a means for testing objective theories by examining the relationship among variables.

These variables, in turn, can be measured, typically on instruments, so that numbered data can be

analyzed using statistical procedures”.

Furthermore, the researchers will utilize descriptive analysis to assess the benefits and

incentives on an employee's performance. According to Bush (2020), descriptive analysis, also

known as descriptive analytics or descriptive statistics, is the process of using statistical techniques

to describe or summarize a set of data. As one of the major types of data analysis, descriptive

analysis is popular for its ability to generate accessible insights from otherwise uninterpreted data.

Population and Sampling Technique

The researchers are selected simply to be more specific to the study. PLMar BSHM

students only, the survey can be used to conduct the study with greater ease. The researchers will

include all BSHM students in PLMAR, even if they do not live in Marikina. This is because they

are part of the department where the researchers want to conduct the study. The researchers have

100 respondents, working students of BSHM both male and female ranging 18-29 years old.
 14

The researchers use proportional sampling to ensure that the selected sample accurately

reflects the distribution of characteristics present in the entire population. This method helps

prevent bias and allows for more reliable generalizations from the sample to the broader

population. It’s particularly useful when dealing with diverse populations or when certain

subgroups need representation in the study. Proportional Sampling approaches were used in this

study due to the fact it reduces sampling variance and improve estimation precision when the

auxiliary information used in the sampling is correlated with the variables of interest, and it ensure

that the sample represents all groups of interest while focusing on obtaining a good estimate for

the overall population.

The researchers decided to gather 150 respondents from Pamantasan ng Lungsod ng

Marikina BSHM students to make sure that the researcher will be having the needed response to

use on this study.

Data Gathering Procedures

The researchers will conduct a survey questionnaire online by using Google Forms. By

doing so, the respondents (BSHM working students) can easily access and answer the survey

without meeting them physically, so they won't be too distracted from their work, studies, and

other errands. There is a 100-person limit on the number of participants or respondents that the

researcher is targeting. Researchers use the purposive sampling method to select respondents. The

main factor in the selection of the participants was that they must be BSHM students in Pamantasan

ng Lungsod, Marikina City. They were given an informed consent form. It was added that they

voluntarily participated in the study. The researchers also ensured the confidentiality of the study

participants. The data that will be collected will be tallied, tabulized, and subject to interpretation.
 15

Data Analysis

The researchers will be utilizing frequency and percentage distribution for demographics.

Weighted mean and standard deviation of variables. According to JULIE YOUNG (March 30,

2022) A frequency distribution is a representation, either in a graphical or tabular format, that

displays the number of observations within a given interval. The frequency is how often a value

occurs in an interval while the distribution is the pattern of frequency of the variable.

A frequency (distribution) table shows the different measurement categories and the

number of observations in each category. Before constructing a frequency table, one should have

an idea about the range (minimum and maximum values). Sundaram KR, Dwivedi SN, Sreenivas

V. 1st ed. New Delhi: B.I Publications Pvt Ltd; 2010. Medical statistics principles and methods.

To identify the differences the researchers will utilize ANOVA. Anova can be a useful

statistical method to compare the means of multiple groups, in this case, the monetary and non-

monetary benefits for working students in the PLMAR BSHM program. Analysis of variance

(ANOVA) is an analysis tool used in statistics that splits an observed aggregate variability found

inside a data set into two parts: systematic factors and random factors. The systematic factors have

a statistical influence on the given data set, while the random factors do not. Analysts use the

ANOVA test to determine the influence that independent variables have on the dependent variable

in a regression study.
 16

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