STAFF TRAINING AND DEVELOPMENT CONSTRAINTS OF FINANCIAL

INSTITUTIONS IN SAN JOSE, OCCIDENTAL MINDORO

AN UNDERGRADUATE THESIS

Presented to the Faculty of College of Business, Administration, and Management

In Partial Fulfillment of the Requirements for the Degree

ROSALES, MARIEL L.
REPOLLO, MERRY GRACE B.
PESALES, REJOICE M.
VILLACRUSIS, CAMELA T.
SY, JAEKINS TRISH
VERZON, JOYCE ANN H.
RODRIGUEZ, ARRIANE GRACE R.
ZAPANTA, MAYONEZA D.

May 2024
 CHAPTER I

BACKGROUND OF THE STUDY

Introduction

It's crucial to lend money, especially to individuals who are struggling with

poverty. The greatest firm for those who truly wish to lend money is a financial

institution. A company engaged in the business of handling financial and monetary

transactions, such as deposits, loans, investments, and currency exchange, is referred to

as a financial institution (FI) (Hayes, 2023). Central banks, retail and commercial banks,

internet banks, credit unions, savings and loan (S&L) associations, investment banks and

corporations, brokerage firms, insurance companies, and mortgage companies are the

main categories of financial institutions. Financial institutions come in a variety of forms,

including banks and credit unions, investment banks, brokerage houses, and mortgage

lenders (Horton, 2023).

According to a survey done by [Link] regarding San Jose,

Occidental Mindoro, there are 36 financial services that are still in operation today. San

Jose is home to numerous major financial institutions, including Land bank, China bank,

Veterans Bank, City-state Savings Bank, Development Bank of the Philippines (DBP),

Philippine National Bank (PNB), United Coco Planters Bank (UCPB), China bank

Savings (CBS), Metro bank, Rizal Bank (RCBC), Card Bank Inc., and other Rural Banks.

The financial systems are mainly bank-centric, with most financing needs still

being met by commercial banks (Beck et al., 2010). Jhon Harry says “Bank is an

economic institution whose main aim is to earn profit through exchange of money and

credit instrument” All financial institutions in the Philippines are supervised and
governed by the Bangko Sentral ng Pilipinas (BSP). There are four different types of

financial institutions in the nation: universal and commercial banks, which are the

majority of financial institutions in terms of resources; rural and cooperative banks,

which are well-known and well-liked in the Philippines' rural communities. Next is the

thrift banking system, which, according to Rahul Kumar (2018), is made up of stock

savings and loan organizations, private development banks, savings and mortgage banks,

and microfinance thrift banks. The other type of financial institution in the Philippines

also includes some non-banks with quasi-banking capabilities, which brings us to our

final point. For the aim of re-lending, purchasing receivables and other liabilities, this

group of institutions engages in the issuance, endorsement, assignment with recourse, or

acceptance of deposit substitutes to borrow money from 20 or more lenders for the

borrower's own account.

San Jose, Occidental Mindoro has the largest number of banks, shops, dining, and

commercial establishments in Occidental Mindoro and has become a commercial center

on the Mimaropa region. Key local and international exports include rice, salt and

processed milkfish. In the 2017 Cities and Municipalities Competitiveness Index

(CMCI), it ranked 13th in “Overall Competitiveness” among local government units in

the Philippines. Without effective training methods, it is difficult to achieve

organizational training goals.

However, the purpose of this study, was to determine what the issue was with

improving staff training for some financial employees in San Jose, Occidental Mindoro,

and to identify potential solutions to overcome any constraints to staff training

the variables, such as a lack of staff development, that influence the conduct of financial

institution personnel in San Jose, Occidental Mindoro. Neglecting the value of effective

staff training can negatively affect team morale, financial churn, and your ability to

recruit and keep talented workers. One of the most alluring chances you can provide to

lure potential workers is a strong development and career progression opportunity. As a

result, failing to fulfill your obligation to teach and invest in your staff may discourage

top applicants from applying (Hendy, 2023).

In this study, the researchers will discuss potential solutions for resolving the

challenges faced by financial institutions in San Jose, Mindoro, and will also offer some

factual information that can be helpful for future research. It's critical to decide which

training is mandatory for all of your employees and which is elective. While mandated

training covers the basic material that all employees must know regardless of their

personal development goals, optional training should focus on subjects that will aid

employees in their personal growth (Hendy, 2023). The majority of the literature review,

the researchers discover, discusses the effects of some employees' lack of training.

However, no research has been done about the financial institutions' restrictions on staff

growth and training in San Jose, Occidental Mindoro. The researchers made the decision

to investigate this topic as a result.

Statement of the Problem

This study aims to address the relationship of staff training and development that

constraints in financial institutions in San Jose, Occidental Mindoro. Specifically, this

study will provide answers to the following problem:

Mindoro in terms of:

a. years in operation;

b. number of employees;

c. classification of enterprise; and

d. estimate annual monthly income?

2. What is the level of staff training and development constraints of financial institution

of San Jose Occidental Mindoro in terms of;

a. organizational needs;

b. professional needs ;

c. Individual needs

4. Is there a significant difference in the level of staff training and development

constraints in some financial institution in San Jose, Occidental Mindoro, when they are

grouped according to profile?

Objectives of the Study

This study focuses to staff training and development constraints in business

organization in San Jose Occidental Mindoro specifically this study seeks to;

1. Determine the profile of financial institution employees in San Jose, Occidental

Mindoro in terms of:

a. years in operation;

b. number of employees;

c. classification of enterprise; and

d. estimate annual monthly income.

Occidental Mindoro in terms of:

a. budgetary support;

b. working environment; and

c. time.

4. Find out if there is a significant difference in the level of staff training and

development constraints in some financial institution in San Jose, Occidental Mindoro

when they are grouped according to profile.

Significance of the Study

This research will benefit the various sectors as follows:

Aspiring Employee. This study will be beneficial to aspiring employees, they

will gain information regarding staff training that they must acquire and the skills they

must perform.

Employer. The study will also be used as a source for a new employer in the

business world who wants to conduct a training and development program for his

prospective employees. This program will help the employee advance their knowledge so

that both the company and the employees will benefit in the long run.

Financial Institution. This study will help the institution address the concerns of

some potential employees regarding the creation of staff training and to make it strictly

necessary in some financial institutions.

as a reference. In general, this course will equip students who want to begin working in a

commercial organization with expertise.

Students. The students can gain understanding of the kind of training and growth

they must obtain as prospective employees in business organization.

Scope and Limitations

This study will focus on the training and development constraints of staff in

financial institutions such as banking institutions in San Jose, Occidental Mindoro. To

enhance job performance, training skills, and behavior tends to be transferred in the

workplace, maintained overtime, and generalized across contexts.

This study aims to identify the significant difference in the level of staff training and

development constraints in some financial institution in San Jose, Occidental Mindoro,

when they are grouped according to profile. This study also aims to determine the profile

of staff of some business organization in San Jose, Occidental Mindoro in terms years in

operation, number of employees, classification of enterprise, and the estimate annual

monthly income. At the same time the researchers aim to identify the level of

development constraints of financial institution in San Jose, Occidental Mindoro in terms

of budgetary support, working environment and time. However, this study will

address the respondents, who will be bank employees in San Jose, Occidental Mindoro,

and the way the survey questionnaire was put together.

The study was anchored by the capital theory, which contents that investing in

education and training is an investment in future production rather than merely a use of

resources. According to this viewpoint, investing in human capital is essential for

businesses and employees to become more competitive, profitable, and well-paid

(Cassonova & Paguia, 2021). A different theory in use in the Investment Theory, which

views pursuing higher education as an entirely public and private option over government

and individuals. Education is a public investment that boosts economic growth through

higher productivity, social stability, and healthier lifestyles. However, as a personal

investment decision, engaging in higher learning enhances overall income for individuals

who have more years of education, positions with higher salaries, less time invested in

labour market, and quicker conversations to improved career opportunities (Aktar, 2023).

Based on social exchange model that include reciprocity, the relationship between

employability and job performance can be further developed. The other person’s

investment pays off the first person’s investment. According to the social exchange

model, if someone does you a favor by giving you something you feel bound to return the

favour by giving something else, thus achieving equality. When management invests in

the workforce’s employability, this will have an impact on the workers’ desire to
reciprocate by offering something in exchange for management’s investment (Nonhebel,

2016).

This study examining the level of staff training and development constraints

within a financial institutions in San Jose, Occidental Mindoro, draws upon the human

capital theory and the Investment Theory as theoretical frameworks. It underscores that

investing in education and training, as emphasized by the human capital theory, is not

only resource expenditure but a strategic investment in future productivity and

competitiveness. Similarly, the Investment Theory highlights education as both a public

and private investment with significant economic and personal benefits. In tandem with

social exchange models, the study further explores how the reciprocal nature of

investments, where management invest in employability and employees respond in kind,

and shed light on addressing constraints such as budgetary support, working

environment, and time in the context of the financial institution’s staff training and

development.

Figure 1. The Schematic Diagram of Theoretical Framework

The study's theoretical framework's schematic diagram is based on an analysis of

prior research that explains the causal connections between the dependent variable and

study's independent variables. The following figure 1 depicts all the problems and

counterarguments as they relate to and interact with one another during the process of

creating a financial institution's profile. Staff training and development are mutually
dependent, yet they act as a whole to decide employee engagement. The relationship

between the study's predictors and criteria variables is shown in the model below.

Conceptual Framework

The conceptual framework is shown in the research paradigm. The figure 2 shows

the employee profile in a financial institution is the dependent variable or the criterion

variable, and the staff training and development constraints serve as the predictor variable

or the independent variable that provides information into it. below depicts the proposed

flow of the study

Predictor Variable Criterion Variable

Staff Training and Profile

Development Constraints Years in Operation

Budgetary Support Number of Employees

Working Environment Time Classification of Enterprise

Estimate Annual Monthly

Income

Fig. 1. The research paradigm.

As the paradigm shown in Figure 1, the predictor variable is analogous to an

independent variable and will be used to predict an outcome. The profile and staff

training will be the predictor variables used in this study. On the other hand, the

dependent variables represent the development constraints which were predicted in a

statistical analysis.
Operational Definition of Terms

The following words were defined operationally for broad understanding.

Staff. It demotes to the group of people engaged in tasks that provide support for

line groups. They consist of advisory (legal), service (human resources), or control

(accounting) groups.

Training. It speaks of the whole person development–not just transferring skills,

the traditional interpretation of training at work.

Development. It demotes to a wide scope of ideas, activities, and initiatives that a

business owner and management implement with the goal of making the business better.

Business development can include many objectives, such as sales growth, business

expansion, the formation of strategic partnerships, and increased profitability.

Constraints. It refers to the aspects of the immediate work environment that

inhibit the translation of motivation and abilities into effective performance (Peters &

O’Connor, 1980). 

Budgetary support. It demotes to a method of financing an organizations budget

through a transfer of resources from an external financing agency to the define budgetary

support within an organization.

Working Environment. It pertains to the setting, social features and physical

conditions in which an employee perform his/her job. These elements can impact feelings

of well-being, workplace relationships, collaboration, efficiency, and employee health.

Profile. It refers to a framework for understanding the internal and external

factors that shape the operating environment of a business and affect the business

decisions made. A Profile helps to understand future business success, needs,

of a business.

Years in Operation. It refers to the time frame starting from the Effective Date,

or, if applicable, the first day of an Accounting Period on or after the Effective Date's

anniversary date, until the first day of an Accounting Period on or after the next Effective

Date anniversary date.

Number of Employees. It denotes the total number of employees who worked at

the location on a regular basis over the previous calendar year. Each regular full-time

employee and each part-time employee will each be counted as one employee for

calculating this figure.

Classification of Enterprise. A business can be incorporated, quasi-incorporated,

a non-profit organization, or unincorporated. According to their size, businesses can be

categorized into a variety of groups; the most common criterion used for this is the

number of employees.

Estimate Annual Monthly Income. Monthly income is the gross countable

income that was received, is anticipated to be received, or its equivalent in the following

month. On prior interest and dividend payments made by the securities kept in an

account, it also serves as an estimate of the interest and dividends projected to be

received on investments over the course of the following 12 months. Additionally, it is

based on claims made by the people who issued those securities.