CHAPTER 1
The Problem and Its Background

Introduction

In economics, the private sector1 is that part of the economy which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state. By contrast, enterprises that are part of the state are part of the public sector; private, non-profit organizations are regarded as part of the voluntary sector.

The Public Sector2, sometimes referred to as the state sector is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.

Job satisfaction3 describes how content an individual is with his or her job. The happier people are within their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance, methods include job rotation, job enlargement and job enrichment. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous work position . Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions related to rate of pay, work responsibilities, variety of tasks, promotional opportunities, the work itself and co-workers.

Job satisfaction4 has been defined as a pleasurable emotional state resulting from the appraisal of one’s job; an affective reaction to one’s job; and an attitude towards one’s job. Weiss has argued that job satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and behaviours. This definition suggests that we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviours. The study shows that if the employees are more satisfied with their jobs, the more motivated they become. And this may perhaps lead to productivity and profitability which is beneficial for a company. The motivation to stay on the job is not just based on economic factor.

Motivation5 is the driving force which causes us to achieve goals. Motivation is said to be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion. There can be two types of motivation: Intrinsic motivation refers to motivation that is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure while extrinsic motivation comes from the outside of the individual. Common extrinsic motivations are rewards like money and grades, coercion and threat of punishment. Competition is in general extrinsic because it encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. A crowd cheering on the individual and trophies are also extrinsic incentives. Social psychological research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. In one study demonstrating this effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing pictures spent less time playing with the drawing materials in subsequent observations than children who were assigned to an unexpected reward condition and to children who received no extrinsic reward.

As marketing management students, the researchers will working in the administrative department of a company soon. The researchers want to learn the reasons behind the satisfaction of employees so that they would know how to deal with them soon.

Background of the Study

The study entitled “ The Level of Job Satisfaction of Selected Employees in Private and Public Sector in Pasay City” has been conceptualized by the researchers because they want to help the future applicants and future employees of the two sector. Those who are motivated with their work will stay longer in the company and produce more which will help in the productivity of the company.

These two sectors has established commitment to provide qualified, competent, compassionate and Christ-Centered care personnel by implementing continual education, training and holistic staff development program including career management. It is with this end that these two sectors provide invaluable opportunities to its employees to gain their efficiency, loyalty, satisfaction and growth in the organization. In short, public and private sectors develop individuals who make things happen in their lives.

The employees are important to a firm because they are not ordinary people. They are the ones who make the company profitable and productive as well. The researchers concerned for the level of job satisfaction of the employees for both private and public sector arrived in s consensus on studying this subject matter which could help them in their chosen career soon.

Setting of the Study

The researchers will conduct their study at Pasay City, Philippines.

The City of Pasay6 (Filipino: Lungsod ng Pasay) is one of the cities and municipalities that make up Metro Manila in the Philippines. It is bordered on the north by the country's capital,Manila, to the northeast by Makati City, to the east by Taguig City, and Parañaque City.

Pasay City was one of the original four cities of Metro Manila. Due to its proximity to Manila, it quickly became an urban town during the American Period. I n terms of area, Pasay city is the third smallest political subdivision in the National Capital Region. It is adjacent to the City of Manila and is bounded to the south by Parañaque, to the northeast by Makati and Taguig and to the west by Manila Bay. The city is located at latitude 14° 32' and longitude 121° 00'.

The City has a total land area of 18.50 square kilometers of which 5.5050 square kilometer is the City proper, 9.5 square kilometers is being occupied by the Civil Aeronautics Administration (CAA) complex, which include the Ninoy Aquino International Airport (NAIA) and the Villamor Air Base and the rest of the reclamation area with 4.00 square kilometers. Thus, among the local government in the region, Pasay has the greater area devoted to utilities covering 51.35% of its total land area or 9.50 square kilometers. The City is known for its entertainment - business-restaurants, coffee shops, and clubs, particularly those located along Roxas Boulevard, facing Manila Bay. A large part of Metro Manila's "tourist belt" is located in the City. Pasay is composed of seven (7) districts, divided into twenty (20) Zones, with a total of 201 Barangays. Zone 19, Covering Barangays 178 and 191, is the largest among the zones with an area of 5.10 square kilometers. Zone 1, on the other hand, is the smallest covering Barangays 1 to 3 and 14 to 17 with an area of 100,000 square meters (0.1 km².).

Most of the attractions in the city are on the CCP (Cultural Center of the Philippines) Complex, on which the massive main CCP building, Philippine International Convention Center (PICC), Tanghalang Francisco Balagtas (formerly Folk Arts Theater), Manila Film Center, Coconut Palace, Product Design and Development Center of the Philippines (PDDCP), Philippine Trade Training Center (PTTC), World Trade Center-Metro Manila(WTCMM), Cuneta Astrodome, and theme parks such as Star City, Nayong Pilipino, and Boom na Boom are all located. Terminal 2 and the recently opened Terminal 3 of the Ninoy Aquino International Airport, as well as the terminal of the Manila Domestic Airport is located in Pasay City. Villamor Airbase of the Philippine Air Force is also located here.

Other national government offices could be found in Pasay: Department of Foreign Affairs (DFA), Senate of the Philippines, the Philippine Department of Trade and Industry's export promotions agency - the Center for International Trade Expositions and Missions (CITEM) - located in the International Trade Complex's Golden Shell Pavilion, and the Overseas Workers Welfare Administration (OWWA). The main office of the Philippine National Bank, led by its president taipan Lucio Tan, is located in the City.

Pasay City is home to the headquarters of the SM Group of Companies and the SM Mall of Asia, touted as the biggest mall in Asia which opened on May 21, 2006. Also interesting is a budding strip of restaurants at the corner of EDSA Extension and Pres. Diosdado Macapagal Ave. It will also be the house of booming call center business industry in the Philippines due to vast land space available located in the reclamation area.

Due to time constraints we only choose three public sectors and three private sectors to be able to accomplish this research on time. The places where the survey questionnaires will distribute, in the public sector, the San Juan de Dios Hospital and Sta. Clara Parish School. And in the public setor, in Pasay City Hall, Pasay West High School and Barangay 120, Zone 12 Pasay City.

[pic]

Figure 1.1

Map of Pasay City Showing the Setting of the Study

Theoretical Framework

Frederick Herzberg’s two factor theory7 (also known as Motivator Hygiene Theory) attempts to explain satisfaction and motivation in the workplace. This theory states that satisfaction and dissatisfaction are driven by different factors – motivation and hygiene factors, respectively. Motivating factors are those aspects of the job that make people want to perform, and provide people with satisfaction. For example, achievement in work, recognition and promotion opportunities. These motivating factors are considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of the working environment such as pay, company policies, supervisory practices, and other working conditions. While Herzberg's model has stimulated much research, researchers have been unable to reliably empirically prove the model, with Hackman & Oldham suggesting that Hertzberg's original formulation of the model may have been a methodological artefact. Furthermore, the theory does not consider individual differences, conversely predicting all employees will react in an identical manner to changes in motivating/hygiene factors. Finally, the model has been criticised in that it does not specify how motivating/hygiene factors are to be measured.

INPUT PROCESS OUTPUT

Statement of the Problem

The main thrust of the study is to determine the level of job satisfaction of selected private and public employees in Pasay City.

Specifically, the researchers sought to answer the following questions as presented in the statement of the problem.

1. What is the profile of the employees as to:

1.1 Age 1.2 Gender 1.3 Civil status 1.4 Years of service in the company 1.5 Employment status 1.6 Highest educational attainment 1.7 Annual salary 1.8 Sector 2. How did the respondents assess their level of job satisfaction in terms of:

2.1 Company Policy

2.2 Supervision

2.3 Interpersonal Relations

2.4 Working Conditions

2.5 Salary

2.6 Security

2.7 Achievement

2.8 Recognition

2.9 Work Itself

2.10 Responsibility

2.11 Advancement

2.12 Growth

3. What other factors should be considered by management to have a higher level of job satisfaction in terms of:

3.1 Promotion in Rank

3.2 Medical and Financial Assistance

3.3 Loans with minimal interest

3.4 Retirement Benefits

3.5 Job Security / Tenure

3.6 Improved work environment

3.7 Incentives

4. How did the responses of the selected public and private employees of Pasay City on their level of job satisfaction compare?

Assumptions of the Study

This study was anchored on the assumptions that the respondents were honest and sincere in answering the questions given to them. The researchers assumed that the information and answer provided are accurate and correct.

Hypothesis

This study will test the null hypothesis that there are no significant differences on the responses of the selected public and private employees of Pasay City on their level of job satisfaction.

Significance of the Study

The results of this study will not only benefit the researchers, but also the following:

1. The managers of private companies and government agencies because ideas found on what can satisfy their employees may be of help to them.

2. Employees and future employees to help them decide where to get their employment.

3. This study will benefit the future researchers by giving them new information and insights on how to conduct research. It will also serve as their guide or reference when they prepare their own research.

4. This study will provide a better understanding for concerned readers on the level of job satisfaction of public and private employees in Pasay City.

Scope, Delimitation and Limitation of the Study

The study is focused on the level of job satisfaction of selected private and public employee in Pasay City. The study is delimited on the components of company policy, supervision, interpersonal, relations, working conditions, salary, security, achievement, recognition, work itself, responsibility, advancement and growth and the profile of Pasay city and the respondents of the study.

Definition of Terms

The following unfamiliar words are the terms used in some parts of the study. They are listed with their corresponding definition to facilitate easy and better understanding of the study:

Achievement. It is something that has been accomplished, especially by hard work, ability, or heroism.

Advancement. The act of advancing, or the state of being advanced; progression; improvement; furtherance; promotion to a higher place or dignity; as, the advancement of learning.

Employee benefits. are various non-wage compensations provided to employees in addition to their normal wages or salaries.

Extrinsic. It comes from outside of the individual interest or enjoyment.

Growth. it refers to an increase in some quantity over time.

Hygiene. Factors that can cause dissatisfaction if missing but do not necessarily motivate employees if increased

Intrinsic. It is driven by an interest or enjoyment in the task itself, and exists within the individual rather than relying on any external pressure.

Motivation. The psychological feature that arouses an organism to action towards a desired goal, the reason for that action.

Policy. Typically described as a principle or rule to guide decisions and achieve rational outcome(s).

Private Sector. The part of a nation's economy which is not controlled by the government.

Public Sector. The composition of the public sector varies by country, but in most countries the public sector includes such services as the police, military, public roads, public transit, primary education and healthcare for the poor. The public sector might provide services that non-payer cannot be excluded from (such as street lighting), services which benefit all of society rather than just the individual who uses the service(such as public education), and services that encourage equal opportunity.

Recognition. In sociology is public acknowledgement of person’s status or merit.

Responsibility. duty or obligation to satisfactorily perform or complete a task (assigned by someone, or created by one's own promise or circumstances) that one must fulfil, and which has a consequent penalty for failure. Satisfaction.The act of satisfying, or the state of being satisfied;gratification of desire; contentment in possession and enjoyment; reposeof mind resulting from compliance with its desires or demands.

ENDNOTES

1 http://en.wikipedia.org/wiki/Private_Sector

2 http://en.wikipedia.org/wiki/Public_Sector

3 http://en.wikipedia.org/wiki/Job_satisfaction

4 http://www.scribd.com/doc/18815043/Job-Satisfaction-level-of-employees-of-company

5 http://en.wikipedia.org/wiki/Motivation

6 http://en.wikipedia.org/wiki/Pasay

7 http://www.netmba.com/mgmt/ob/motivation/herzberg/

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Job Satisfaction of Employee

Employee’s Productivity

salary, benefits, bonus, insurance, working load, allowance, facilities, co-worker/ management relations, social and spiritual activities within workplace

Assessment Of Job Satisfaction Level in selected Private and Public Employees in Pasay City