A Comparative Analysis on the Effect of Work Motivation Factors on Job Satisfaction Essay

CHAPTER I INTRODUCTION Employment security continues to be a major concern for millions of Filipinos, while employers struggle in establishing and maintaining a stable work force specifically in the finance service industry in the Philippines. Financial services refer to services provided by the finance industry where it encompasses a broad range of organizations that deal with the management of money and among these organizations are banks, credit card companies, insurance companies, etc.

The average job in the finance industry requires skilled employees and is often the considered destination employment of most accounting and finance graduates on the other hand, these companies perceive the high turnover rate as a major problem and leave the employer to fill the same position again and again. A better understanding of employee motivation is one answer to this dilemma. What is motivation? A good working definition of motivation is: motivation represents a measurable increase in both job satisfaction and productivity.

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The motivated worker does his job better and likes it more than those folks who are not so motivated. A follow-up question to this is why do people work? This is not a new inquiry, but the answer has been the quest of management experts for years (Herzberg, 1968). It is generally agreed upon that if an employer can identify the reasons a worker is productive, reports to work on time and remains with the company, the employer might then be able to apply these motivational factors unilaterally to the entire workforce.

Applying this knowledge and fashioning the employment atmosphere to better accommodate the motivational factors of the employee the employer becomes a more desirable employment destination, retaining employees longer and increasing productivity and service at the same time. BACKGROUND OF THE STUDY Employee motivation has been studied at length. Through research, a significant myth has been dispelled and shown to be incorrect. The biggest misconception was that good wages were always the primary motivational factor among employees regardless of the industry by which they are employed (Tsang, Wong, 1997).

In a survey done by a human-capital consultancy Hudson in March 2006 where it reported that finance executives seem very satisfied with their compensation than most other workers. Reasons mentioned by Hudson for the higher satisfaction include that accounting and finance employees are more likely to have received a raise within the last year than the overall workforce. In this study, the researcher would like to determine, whether the motivation factors in Banko Sentral ng Pilipinas (BSP) and other Financial Instituions in Metro Manila has a significant effect in the job satisfaction of employees.

THEORETICAL FRAMEWORK This study will be based on the Existence, Relatedness and Growth (ERG) theory of motivation and its measurement. This theory is the result of the studies conducted by Clayton P. Alderfer, at Yale University over a period of five years (1965-1969) and published in 1972. The ERG theory is a model in reaction to Maslow’s famous Hierarchy of Needs, which distinguishes three categories of human needs that influence worker’s behavior; existence, relatedness and growth. Alderfer condenses the Maslow hierarchy into three need categories: ALDERFER’S ERG THEORY [pic]

Existence needs are all the various forms of physiological and material needs and desires, such as hunger, thirst and shelter. In organizational settings, needs for pay, benefits and physical working conditions are also included in this category. This category is comparable to Maslow’s physiological and safety needs. Relatedness needs include all those that involve interpersonal relationships with others in the workplace. This type of need in individuals depends on the process of sharing feelings with others to attain satisfaction. This need category is similar to Maslow’s safety, social and certain ego-esteem needs.

Growth needs are all those needs that involve a person’s efforts toward creative or personal growth on the job. Satisfaction of growth needs results from an individual’s engaging in tasks that not only require the person’s full use of his or her capabilities, but also may require the development of new capabilities. Maslow’s self-actualization and certain of his ego-esteem needs are comparable to these growth needs. CONCEPTUAL FRAMEWORK The researcher was able to identify motivational factors and respondent’s profile as the independent variables while the level of job motivational is the dependent variable in the study.

STATEMENT OF THE PROBLEM The purpose of this research is to compare the effects of motivational factors on job satisfaction of Bangko Sentral ng Pilipinas (BSP) and other Financial Institutions employees in Metro Manila. In an attempt to answer the general problem, the researcher has divided the area into more specific questions: 1. What is the profile of the respondents of selected computer companies in terms of: 1. Age 2. Sex 3. Marital Status 4. Educational Attainment 5. Employment Status 6. Length of Service 7. Position/Nature of Work 8.

Yearly Gross Income 2. How do the employees rate their motivational factors according to their degree of satisfaction for the following? 1. Job Security 2. Salary 3. Fringe Benefits 4. Working Conditions 5. Supervision 6. Interpersonal Relations 7. Management 8. Achievement 9. Advancement 10. Recognition 3. What are the effects of those motivational factors in their job satisfaction? 4. Is there a significant relationship between the demographic profile of financial service employees and their degree of satisfaction for the following: 1. Job Security 2.

Salary 3. Fringe Benefits 4. Working Conditions 5. Supervision 6. Interpersonal Relations 7. Management 8. Achievement 9. Advancement 10. Recognition STATEMENT OF HYPOTHESIS The study will work on the hypothesis that there are no significant differences on the effects of motivational factors on the job satisfaction of rank and file employees Bangko Sentral ng Pilipinas (BSP) and other Financial Institutions. SIGNIFICANCE OF THE STUDY As far as the researcher has determined, this is the first study of this nature which is conducted in financial institutions.

There had been several studies and researchers undertaken about the subject, but a study focusing on employees from financial institutions has not yet been conducted. Moreover, there had been studies closely related to Maslow’s and Herzberg’s theories, but only few had taken on Alderfer’s viewpoint. This study, therefore, is deemed significant because it will give the employees a chance to let their management know their feelings about their employment and at the same time, it might give their respective management a change to make adjustments that might result to better condition of employment.

The researcher will also test whether the job motivational factors among financial institutions affects the job satisfaction of their rank and file employees. This paper may also provide the companies’ management a basis for suggestions and recommendations for more improvement in personnel practices and policies to produce better and more effective employees. Thus, to be able to provide ideas on how these companies work at their best towards the attainment of their goals and objectives.

In doing so, the researcher tried to determine the factors in their work environment that were likely to motivate employees of the participating finance institutiions towards better job performance. These objectives were attained after a meaningful application of Clayton Alderfer’s Existence, Relatedness and Growth Theory in the Finance industry in the Philippines. SCOPE AND LIMITATION The study is limited only to rank and file employees of Bangko Sentral ng Pilipinas and other financial institutions located in Metro Manila.

The rank-file employees were chosen as respondents because they are perceived to have more needs than those occupying supervisory and managerial position. Moreover, they are most likely to express their innermost feelings about their jobs. Nevertheless, the subject companies will be assured by the researcher of the confidentiality of any sensitive findings. DEFINITION OF TERMS The researcher made use of several terms which were defined to facilitate better understanding and to avoid possible confusions or misinterpretations of the terms used in the study.

Effect – the way in which something acts upon or influences a person Existence Needs – in Alderfer’s classification, they rank the lowest. They include the obvious needs for food, water, shelter and physical safety Growth Needs – these focus on the self and include the need for personal growth and development, which can be satisfied only by using one’s capabilities to the fullest Job Satisfaction – contentment (or lack of it) arising out of interplay of employee’s positive and negative feelings towards his or her work.

Motivation – is typically defined as consisting of the drives that move us to do what we do and these drives may be internal or external. Financial Institutions – institution which collects funds from the public and places them in financial assets, such as deposits, loans, and bonds, rather than tangible property. Bangko Sentral ng Pilipinas (BSP) – central monetary authority of the Republic of the Philippines. CHAPTER 3 RESEARCH METHODOLOGY This chapter discusses the research method and procedures used, sampling procedure, subjects of the study, research instrument and statistical treatment in the analysis and interpretation of data.

METHOD OF RESEARCH The descriptive method will be used in this study to determine the motivational factors of the rank-and-file employees of selected financial institutions and Bangko Sentral ng Pilipinas (BSP). POPULATION AND SAMPLE SIZE The researcher decided to select Bangko Sentral ng Pilipinas (BSP) and top three Financial Institutions in Metro Manila. The criteria for selection of the respondents were as follows: 1. They had to be rank-and-file employees with permanent status in their company 2.

Should have at least one year length of work experience in the finance industry. 3. Location of work had to be in Metro Manila. The researcher will make use of the quota random sampling of respondents. A determinant of the appropriate sample size of the population used in this survey was done using the formula: n = N 1 + Ne2 Where:n = sample size N = the number of the universe 1 = constant e = desired margin of error From table 1 shows a total samples will be taken as subjects from among the four institutions.

Table 1 – Population and Sample Distribution of Respondents |Company |Population |Total # of Respondents | |Bangko Sentral ng Pilipinas (BSP) |To be determine |To be determine | |Banco de Oro Unibank, Inc (BDO) |To be determine |To be determine | |Metropolitan Bank and Trust Company (Metrobank) |To be determine |To be determine | |Bank of the Philippine Island (BPI) |To be determine |To be determine | |Total |To be determine |To be determine | RESEARCH INSTRUMENT An attitude survey questionnaire is specifically designed for this purpose. It sought to identify the given motivational factors classified according to Clayton Alderfer’s Existence, Relatedness and Growth (ERG) theory. The questionnaire is divided into two parts.

Part One included the respondent’s personal profile such as age, sex, civil status, educational attainment, employment status, length of service in the company, position or nature of work and present yearly gross income. Part two of the questionnaire contains the ten (10) motivational factors based on ERG Theory. Listed under each factor were phrases or items which apply to employee and their jobs in relation to the given factors. The factors were as follows: I. EXISTENCE NEEDS 1. Job security 2. Salary 3. Fringe Benefits 4. Working conditions II. RELATEDNESS NEEDS 1. Supervision 2. Interpersonal relations 3. Management III. GROWTH NEEDS 1. Achievement 2. Advancement 3. Recognition

On the right side is Likert-type scale wherein the respondent will be asked to rate his or her degree of satisfaction on the given items. 5 would mean 81-100% satisfaction; 4 implies 61-80% satisfaction; 3 refers to 41-60%; 2 represents 21-40% and 1 would mean 1-20% satisfaction. However, if the item presented is not related to his/her job, he will be asked to check the not applicable or N. A. space. PROCEDURE IN GATHERING OF DATA Distribution and retrieval of the research instrument, the research sought the help of Personnel Officer of each company. A period of no less than one month will be slated for the distribution and retrieval of the instrument. STATISTICAL TREATMENT OF DATA The following statistical techniques and methods are intended to be employed in this study:

Weighted Mean will be used to measure the extent of satisfaction of the employees. The formula is: WM = [pic] n Where:WM = Weighted Mean f = frequency x = unit weight n = Total number of respondents The item weighted mean was interpreted using Likert’s Five-point scale. This was the type of quantitative ranking to provide quantitative basis for interpretation of results. The concept of the boundary of numerals is as follows: Unit WeightInterpretationWeighted Mean Interval 5Very Satisfied4. 51 – 5. 00 4Satisfied3. 51 – 4. 50 3Fairly Satisfied2. 51 – 3. 50 2Dissatisfied1. 51 – 2. 50 1Very Dissatisfied1. 00 – 1. 50 The Arithmetic mean (x) will be used as a measure of central tendency while he standard deviation (S) will be used as a measure of the homogeneity or heterogeneity of the ratings. The formula are as follows: x = [pic] n = sum of weighted means n = number of respondents or S = [pic] (x – x)2 >>finish equation Where: (equation) = sum of the square of the difference between the ratings and the mean. T-test ———————– Motivational Factors: • Job security • Salary • Fringe Benefits • Working Conditions • Supervision • Interpersonal Relations • Management • Achievement • Advancement • Recognition Level of Job Satisfaction Profile of Respondents: • Age • Sex • Marital Status • Educational Attainment • Employment Status • Length of Service • Position/Nature of Work • Yearly gross income


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