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

respondents by department?

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.

5.2 The computed r – value resulted to 0.35, a

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.

5.4 The computed r – value resulted to 0.05, a

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.

5.2 There is no significant relationship between the

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.

5.3 There is no significant relationship between the

work environment and the labor productivity of the

selected respondents in GD Top Shoe Shop

Subcontractor. The findings found no relationship

between the variables, therefore, the null

hypothesis is accepted.

5.4 There is no significant relationship between the

work ethics 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.

 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

Table 1.3 The Satisfaction Ratings of the Selected

Respondents on the Work Environment ....... 44

Table 1.4 The Satisfaction Ratings of the Selected

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
 Table 5.2 The Significant Relationship between the

Fringe Benefits and the Labor Productivity

of the Selected Respondents ............... 51

Table 5.3 The Significant Relationship between the

Work Environment and the Labor Productivity

of the Selected Respondents ............... 52

Table 5.4 The Significant Relationship between the

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

Indicators and its effect on the labor productivity of shoe-

manufacturing businesses.

Statement of the Problem

This study aims to determine the Key Performance

Indicators and its effect on the labor productivity of shoe-

manufacturing businesses.
 11

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

respondents by department?

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?

 12

Hypothesis

The researchers were able to formulate a null hypothesis

stated as:

There is no significant relationship between the Key

Performance Indicators and the labor productivity of the

selected respondents in GD Top Shoe Shop Subcontractor, San

Mateo, Rizal.

Significance of the Study

This study aims to determine the Key Performance

Indicators and its effect on the labor productivity of shoe-

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

This study aims to determine the Key Performance

Indicators and its effect on the labor productivity of shoe-

manufacturing businesses.

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

the labor productivity of shoe-manufacturing businesses.

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 Satisfaction Rating of the Selected Respondents on

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

Table 1.2 presents the satisfaction rating of the

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

The Satisfaction Rating of the Selected Respondents on

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.
Average Mean 2.97 Neutral
 45

Table 1.3 presents the satisfaction rating of the

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

The Satisfaction Rating of the Selected Respondents on

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.
Average Mean 3.92 Agree
 46

Table 1.4 presents the satisfaction rating of the

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
8 Hours and 47 9 Hours and 37 9 Hours and 12
Areglo
Minutes Minutes Minutes
9 Hours and 37 10 Hours and 7 9 Hours and 52
Tahi
Minutes Minutes Minutes
11 Hours and 36 9 Hours and 27 10 Hours and
Lapat
Minutes Minutes 32 Minutes
8 Hours and 51 7 Hours and 31 8 Hours and 11
Swelas
Minutes Minutes Minutes
8 Hours and 9 8 Hours and 31 8 Hours and 20
Finishing
Minutes Minutes Minutes

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
Variables Average Decision
r - Value r - Value
Fringe Benefits 2.60 Accept the
r(12,0.05) =
Labor 0.35 null
7.24 0.576
Productivity hypothesis

Table 5.2 presents the significant relationship between

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
Variables Average Decision
r - Value r - Value
Work
2.97 Accept the
Environment r(12,0.05) =
-0.08 null
Labor 0.576
7.24 hypothesis
Productivity

Table 5.3 presents the significant relationship between

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,

the null hypothesis is accepted.

 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
Variables Average Decision
r - Value r - Value
Work Ethics 3.92 Accept the
r(12,0.05) =
Labor 0.05 null
7.24 0.576
Productivity hypothesis

Table 5.4 presents the significant relationship between

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

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?

 56

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

respondents by department?

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?

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

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.
 61

5.2 There is no significant relationship between the

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.

5.3 There is no significant relationship between the

work environment and the labor productivity of the

selected respondents in GD Top Shoe Shop

Subcontractor. The findings found no relationship

between the variables, therefore, the null

hypothesis is accepted.

5.4 There is no significant relationship between the

work ethics 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.

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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Seo, M • (2009) • Quotefancy • https://quotefancy.com/quote/7

3521/Seo-Min-Hyun-For-women-shoes-are-the-most-important-
Good-shoes-take-you-good-places

Sundheim, K • (2013) • What Really Motivates Employees? •

https://www.forbes.com/sites/kensundheim/2013/11/26/what-
really-motivates-employees/#7b4c454c7f7c

Uy, et al • (2016) • Practical Research 2 • pp. 99

 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.
Average Mean 3.78 Agree

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.
Average Mean 2.60 Neutral
 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.
Average Mean 2.97 Neutral

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.
Average Mean 3.92 Agree
 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: [email protected]
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: [email protected]
Father: Michael C. dela Cruz
Mother: Maria Alnies P. dela Cruz
Educational Background:
Elementary: Roosevelt College Inc. - San Mateo Campus
Secondary:
Junior High School: Roosevelt College Inc. - San
Mateo Campus
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:

- 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: [email protected]
Father: Florentino A. Espiritu
Mother: Anita C. Espiritu
Educational Background:
Elementary: Guitnang Bayan Elementary School
Secondary:
Junior High School: Roosevelt College Inc. - San
Mateo Campus
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:
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: [email protected]
Father: Joseph S. Garcia
Mother: Dolores C. Garcia
Educational Background:
Elementary: SSS Village Elementary School
Secondary:
Junior High School: Roosevelt College Inc. - San
Mateo Campus
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:

- With Honors, Secondary Level

- 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: [email protected]
Father: Ruperto SP. Gonda
Mother: Susie F. Gonda
Educational Background:
Elementary: Cainta Elementary School and Eulogio Jr.
Rodriguez Elementary School
Secondary:
Junior High School: Eastern Valley School and
Infant Jesus Learning Academy
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:

- With Honors, Secondary Level

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: [email protected]
Father: Eliezar A. Purificacion
Mother: Arlene D. Purificacion
Educational Background:
Elementary: Valley High Academy
Secondary:
Junior High School: Roosevelt College Inc. –
Rodriguez Campus
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:

- 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: [email protected]
Father: Arnold C. Rivera
Mother: Lourdes H. Rivera
Educational Background:
Elementary: Gain Christian Academy
Secondary:
Junior High School: Virgen del Pilar School
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:

- With Honors, Secondary Level

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: [email protected]
Father: Alfonso E. Soleta
Mother: Marilyn A. Soleta
Educational Background:
Elementary: Nuestra Señora De Aranzazu Parochial
School
Secondary:
Junior High School: Roosevelt College Inc. - San
Mateo Campus
Senior High School: FEU Roosevelt – Rodriguez
Educational Achievements:

- With Honors, Secondary Level

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