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COMPENSATION AND BENEFITS ADMINISTRATION IN SELECTED SMALL

CONSTRUCTION FIRMS IN MARIKINA CITY

A Thesis Presented to the Faculty


Of the College Business Administration
Pamantasan ng Lungsod ng Marikina

In Partial Fulfillment of the Requirements


For the Degree
Bachelor of Science in Business Administration
Major in Human Resource Development Management

By:
Andres, Noemi B.
Atendido, Rocelle A.
Gruta, Melanie G.
Perez, Ma. Angelou C.
Rosimo, Justine Mei Veneece P.

2nd semester S.Y.2015-2016

CHAPTER 1
The Problem and Its Background
Introduction
Compensation is the equivalent in any form that is given to the
individual for his work. This recompense is also called job reward. (Human Resource
Management Principles and Practices, Concepcion Rodil Martires, 2007 p. 217) The most
common compensation are wages, salaries and tips. Organizations usually associates
compensation/pay ranges with job descriptions in the organizations. The ranges include
the minimum and the maximum amount of money that can be earned per year in that role.
Benefits serve functions similar to pay, as it is a part of the total
compensation paid to employees by their employers. It contributes to attracting,
motivating, and retaining employees. Different employees look for different types of
benefits and they have come to expect that benefits will help them maintain economic
security. Benefits such as Social Security contributions, pensions, and retirement savings
plans help employees prepare for their retirement while insurance plans help to protect
employees from unexpected costs such as hospital bills. These different important roles
of benefits are one reason that benefits are subject to government regulation. Some
benefits, such as Social Security, are mandated by law and there other important
regulations affecting employee benefits. (Noe et.al Hollenbeck, Gerhart, Wright, 2004 p.
403)
As to Republic Act No. 8282, otherwise known as the Social Security Act of
1997, refers to the social security system in the Philippines that is initiated, developed
and promoted by its Government. The social security system is aimed at providing

protection for the SSS member against socially recognized hazard conditions, such as
sickness, disability, maternity, old age and death, or other such contingencies not stated
but resulted in loss of income or results to a financial burden.
As a citizen of the Philippines, every Filipino has a right and this right has a
counterpart of responsibility. Being an employer he must give what is due to his
employees. In the part of the employee, it is his responsibility to perform his job
accordingly and accurately.
The Researchers aim to determine the Compensation and Benefits Administration
in Selected Small Construction Firms in Marikina City. Those who did not receive the
exact compensation and benefits remain to experience poverty since minimum wage is
not enough to support the necessities of the family of every employee. The benefits of
employee can be a positive thing for both employees and managers. It can make a happier
workplace and even improve office relationships. These benefits can be used to attract
employees and keep them interested in their jobs in order to increase employee tenure.

Background of the Study


This study provides detailed market analysis, information and insights into the
Philippine construction industry. The Philippine construction industry's growth prospects
by market, project type and type of construction activity. Analysis of equipment, material
and service costs across each project type in the Philippines. Critical insight into the
impact of industry trends and issues, and the risks and opportunities they present to
participants in the industry. Analyzing the profiles of the leading operators in the industry.
Data highlights of the largest construction projects in the Philippines. This study provides
a comprehensive analysis of the construction industry in the Philippines. Historical
(2009-2013) and forecast (2014-2018) valuations of the construction industry in the
Philippines' using construction output and value-add methods. Segmentation by sector
(commercial, industrial, infrastructure, institutional and residential) and project type.
Breakdown of values within each project type, by type of activity (new construction,
repair and maintenance, refurbishment and demolition) and by type of cost (materials,
equipment and services). Analysis of key construction industry issues, including
regulation, cost management, funding and pricing. Detailed profiles of the leading
construction companies in Philippines. (Compensation Intelligence Center,
september2014page72)

Motivators

Hygiene Factors

Achievement

Policy and administration

Recognition

Micromanagement

Advancement
The work itself
Responsibility
Potential for promotion
Potential for personal growth

Relationships
Job security
Personal life
Work Condition
Status
Salary

Frederick Herzbergs Motivation-Hygiene Theory


The original notion of Frederick Herzbergs Motivation-Hygiene TheorySimilar
to Maslows Heirarachy of Needs, but focues on what motivated humans to work. He also
focus on what demotivated workers to have a positve or negative job attitues. was that
traditional perspectives on motivation, like Maslows, only looked at one side of the coin
how to motivate people. In Herzbergs worldview, motivation on the job should lead to
satisfied workers, but he theorized that satisfaction and dissatisfaction were not opposite
ends of one continuum. Instead, he predicted that the factors that lead to positive job
attitudes were different from the factors that lead to negative job attitudes. For the
purposes of his theory, he called the factors that led to positive job attitudes
motivatorsThe list of factors that lead to positive job attitudes according to motivation
theorist Frederick Herzberg. and those factors that led to negative job attitudes hygiene
factorsThe list of factors that led to negative job attitudes according to motivation theorist
Frederick Herzberg.. The motivators are all centered around ideas that are somewhat
similar to the esteem needs and self-actualization needs of Abraham Maslow. On the
other hand, the hygiene factors all examine the context of work. Notice that Salary is
centered between both motivators and hygiene factors. In The Managerial Choice Herzberg
reversed his previous thinking that salary was purely a hygiene factor. It also often takes on

some of the properties of a motivator, with dynamics similar to those of recognition for
achievement.

Conceptual Framework of the study

1. Profile of
respondents in
term s of :
Age
Civil Status
Education
Position
Length of
Service
Work experience
2. Policies in
giving
compensation and
benefits to
construction
workers
Skills
Perform ance
Project
accomplishment
3.m anagem ent
im plement the
policies in giving
compensation and
benefits to
construction
workers
* Salary
* Working hour
4. extent of the
policies in giving
compensation and
benefits to
workers as to:
* Capital
* Project Accomplish
5. difference on
the extent of
policies against
nature of
business.

* Interview

COM PENSATION
AND BENEFITS
ADMINISTRATION
IN SELECTED
SMALL
CONSTRUCTION
FIRM S IN
MARIKINA CITY:
AN ASSESSM ENT

* Survey
Questionaire

TO LET THE
W ORKERS KNOW
THE
COM PENSATION
AND BENEFITS
THAT IS FITS TO
THEIR
PERFORMANCE

Statement of the Problem


The primary purpose of this study is to determine the compensation and benefits
administration in selected small construction firms in Marikina City an assessment.
Specifically, this study seeks to address the following questions:
1. What is the profile of co-researcher in terms of:
1.1 Age
1.2 Civil Status
1.3 Educational attainment
1.4 Position
1.5 Employment status
1.6 Length of service
2. How does compensation and benefits motivate employees in selected small
construction firm in Marikina City?
2.1 Salary and Wages
2.2 Social Security System (SSS)
2.3 Philhealth Insurance
3. Does workers' compensation insurance cover long-term and permanent
injuries?

Significance of the study


Compensation and benefits administration is essentially important for the selected
small construction firm as well as the construction workers has a knowledge about it.
This study attempts to determine the compensation and benefits administration in
selected small construction firms in Marikina City an assessment. By knowing what

action should be undertaken to improve in giving compensation and benefits to the


workers of construction companies.
As the researcher, compensation and benefits administration is to fully satisfy the
employees who work in companies. It attempts to prevent problems, to determine the
problems do exist, and to solve the problems that occur quickly and effectively as
possible. The purpose of this study is to help employees to be aware on their
compensation and benefits given by companies. The result of this study will be useful not
only to the researcher but to future researcher.

Scope and Limitation


This study is focuses only on the selected small construction firms with the
compensation and benefits administration. The researchers will use selected companies as
a sample for this study. It is findings therefore can only be generalized to this particular
population.

Definition of Terms
For a better and clearer understanding of the study, the researcher has defined
some of the terms used.

Benefits- is somethingthat will provide advantage for others, something you may
receive as compensation from an insurance company or event to raise money for a
worthwhile cause.
Compensation- means all payments made under this
Compensation Administration-Is the maintenance function of the most sensitive
to conceptualize and operationalize is compensation administration
Retirement-as seclusion or privacy or withdrawal from work due to age
Employee-includes any person in the employ of an employer (Art. 212(f), Labor
Code of the Philippines)
Employer-means any person natural or judicial, employing the services of the
employee. It includes any person acting in the interest of an employer, directly or
indirectly (Art 212(e), Labor Code of the Philippines)
Wages-Payment for labor or services to a worker, especially remuneration on an
hourly, daily, or weekly basis or by the piece.
Salary regular wages received by an employee from an employer on a weekly,
biweekly, or monthly basis.

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