Chapter III

RESEARCH METHODOLOGY

This chapter represents the discussion on the methods and procedure

used by the researchers in conducting the study. This explain the research

design, the population and respondents of the study, the sampling design, the

measurement and instrumentation, the data gathering procedure and the

statistical treatment of the data that researcher used in accomplishing the study.

Research Design

The main purpose of this study aims to know the compensation

management leverage towards employees’ retention and job satisfaction of

private hospital in the 4th district of Batangas. In order to accomplish this

purpose, the researchers used the descriptive survey type of research to gather

the essential information for the study and to come up more precise solution.

According to Adler (2008), descriptive method is a type of research to design the

participants in an accurate way to validate hypothesis or to answer questions

concerning the current status of the subject of the study.

The researchers employed this method by disseminating survey

questionnaires since the main purpose of this study is to know how

compensation management affects employees’ retention and job satisfaction of

private hospital in the 4th district of Batangas. Descriptive research

design/method was used by the researchers for its purpose in finding new truth.

This method is also valuable in providing facts on which scientific judgments

maybe based, providing essential knowledge about the nature of objects and

persons, for closer observation into the practices, behavior, methods and
procedures, playing a large in the development of instruments for the

measurement of many things, and formulating of policies in the local, national, or

international level. This method is also the best research design to analyze and

interpret the data gathered.

Population and Respondents

The population and respondents of the study were required to conduct the

study. The employees of the hospitals would serve as the respondents of the

study by which their performance were measured. The respondents were the

Private Hospitals in 4th district of Batangas. The researchers considered these

industry and the employees of middle management, upper management, and

rank and file employees because they were the common employees who

received compensation and benefits.

The researchers focused on the Private Hospitals in 4th district of

Batangas with the total population of 327. The researchers would use Chi square

method to evaluate and interpret the data that the respondents would provide.

The respondents would answer the questionnaires that would be given to them,

they will receive the questionnaires during their vacant time and the researchers

would stay to look for them answering the questionnaires.

The six private hospitals in the 4th district of Batangas were chosen with

the total population of three hundred twenty seven. First industry was the Untalan

General Hospital having 35 employees, UGH has the second to the least number

of employees because some of the people who work there were just consultant

and not being paid in short these consultants were not included in the hospitals’
employee. Christ the Saviour General Hospital having 76 employees, Sto.

Rosario Hospital, they have 69 employees. Dr. R. Rosales Memorial Medical

Hospital Inc. having 34 employees, Queen Mary Hospital Inc. having 44

employees, and San Juan Doctor’s Hospitals having 69 employees.

Table 3.1

N = 327

HOSPITALS
CLASSIFICATION POPULATION
(N)

Upper Management 0

Middle Management 7

STO. ROSARIO
Rank and File employees 62
HOSPITAL

TOTAL 69

Upper Management 7

Middle Management 10

CHRIST THE SAVIOUR

Rank and File employees 59
GENERAL HOSPITAL

TOTAL 76

Upper Management 4

Middle Management 4

UNTALAN GENERAL
Rank and File employees 27
HOSPITAL

TOTAL 35

Upper Management 5
 QUEEN MARY Middle Management 6

HOSPITAL INC.
Rank and File employees 33

TOTAL 44

Upper Management 4

Middle Management 7
DR. R. ROSALES

MEMORIAL MEDICAL Rank and File employees 23

HOSPITAL
TOTAL 34

Upper Management 7

Middle Management 10

SAN JUAN DOCTOR’S

Rank and File employees 52
HOSPITAL

TOTAL 69

GRAND TOTAL 327

Sampling Design

The researchers will use stratified random sampling since the researcher

wants to highlight a specific subgroup within the total population. Stratified

random sampling is a method of sampling that involves the division of a

population into smaller sub-groups known as strata. This technique is useful in

such researches because it ensures the presence of the key subgroup within the

sample.

Table 3.1

Distribution of Respondents
 N = 327
SAMPLE SIZE
POPULATION
HOSPITALS CLASSIFICATION (N) (n) PROPORTIONAL

Upper Management 0 0

Middle Management 7 4

STO. ROSARIO Rank and File 33

62
HOSPITAL employees

TOTAL 69 37

Upper Management 7 4

Middle Management 10 5
CHRIST THE

SAVIOUR Rank and File 32

59
GENERAL employees

HOSPITAL
TOTAL 76 41

Upper Management 4 2

Middle Management 4 2

UNTALAN
Rank and File 15
GENERAL 27
employees
HOSPITAL

TOTAL 35 19

Upper Management 5 3

Middle Management 6 3

QUEEN MARY Rank and File 33 18

HOSPITAL INC. employees

TOTAL 44 24
 Upper Management 4 2

Middle Management 7 4
DR. R. ROSALES

MEMORIAL Rank and File 23 13

MEDICAL employees

HOSPITAL
TOTAL 34 19

Upper Management 7 4

Middle Management 10 5

SAN JUAN
Rank and File 52 28
DOCTOR’S
employees
HOSPITAL

TOTAL 69 37

GRAND TOTAL 327 177

The researcher decided to consider the 177 respondents of the chosen

industry from the total population of 327 and employed the use of formula to

determine for example the Sto. Rosario Hospital’s employees as follows: 69 / 327

x 177 = 37 to comply with the set criteria. These 37 were then selected with the

help of nominal roll in the institution which was obtained from the human

resource office in the hospitals. With the advice given by the faculty expert, the

researchers used the stratified random sampling technique.

Data Gathering Instrument

To meet the objective of this study, the researchers used the survey

questionnaire as the main instrument. This is because the researchers do believe

that this instrument will be convenient gathering the necessary information for the

accomplishment of the study.

The researchers used books, unpublished theses, and also the internet

while conducting the study to be able to have reliable resources. They used the

descriptive survey type of research to answer the question in this study. The

primary data would be gathered through questionnaires that would be given to

the respondents. The researchers believed that it was the best method to be

used in analyzing and interpreting the information to be gathered in the study.

The sets of questions that the researchers formulated were validated and verified

by the experts before administering for dry run. Survey is useful in providing the

value of facts, and focusing attention on the most important things to be reported.

The researchers used to analyze how the compensation packages affects the

employees, by measuring the employees performance and satisfaction the

researchers used descriptive research design/method for analyzing and

interpreting the data gathered among the employees of the hospitals. The

questionnaires would show the effect of the compensation management on

employees in their performance by rating themselves towards certain questions

that they would answer.

The instrument used in the study was survey questionnaire. It was

composed of three parts which are all self-constructed. The first part was the

demographic profile namely civil status, educational attainment, length of service,

employment status, and position. The second part was the assessing of the

respondents with their compensation management in terms of rewards,

perquisites, incentives, benefits, and salary. The third part was about the

employees’ job retention and job satisfaction.

The answers that would be provided by the respondents were expected to

be reliable as the researchers keep an eye to the respondents while they answer

the survey questionnaires. The distribution of the survey would be randomized;

there would be no particular number of respondents each day, the researchers

would give questionnaires to the employees only during their vacant time, and

the questions would be answer without depending on others opinion, as much as

possible the respondents were required to answer the questions on their own

perception to provide concrete interpretation in formulating solution or action to

statement of the problem.

The researchers used likert scale to interpret the gathered data. It is used

as “summated ratings” where statements and opinions were presented to

persons participating in this study. The scale was divided into four to avoid

misinterpretation because in early studies some researchers used to have five

scales which provided them some unreliable data due to the inclusion of average

level of scale which is undetermined data which exactly falls in between other

data.

To determine the respondents’ assessment with their compensation

management in terms of rewards, perquisites, incentives, benefits, and salary:

Scale Scale Range Verbal Interpretation

4 3.50-4.00 strongly agree

3 2.50-3.49 agree

2 1.50-2.49 disagree

1 1.00-1.49 strongly disagree

To determine on how compensation management affect the employees’

retention:

Scale Scale Range Verbal Interpretation

4 3.50-4.00 completely agree

3 2.50-3.49 agree

2 1.50-2.49 disagree

1 1.00-1.49 totally disagree

To determine on how compensation management affect the employees’

job satisfaction:

Scale Scale Range Verbal Interpretation

4 3.50-4.00 highly satisfied

3 2.50-3.49 satisfied

2 1.50-2.49 unsatisfied

1 1.00-1.49 highly unsatisfied

Data Gathering Procedure

 The data gathered in this study came from different libraries such as

Batangas State University Rosario campus and Batangas State University Main

campus to search for related studies. Materials such as books, journals and

thesis were gathered as the secondary data sources of this study. The

researchers also browsed the internet to gather additional information that gave

ideas which help them to find valuable information in their study. They also

sought help from different people who’s knowledgeable about their chosen topic.

The selected private hospitals help the researchers in easily gathering data. The

data gathered help the researchers in formulation the survey questionnaires.

The instrument that the researcher used in this study is self-constructed

questionnaire containing questions regarding the compensation management,

employees’ retention and job satisfaction. The construction of the questionnaires

was on April 2019. The first draft of questionnaire was submitted to the thesis

adviser for refinement or revision. After some correction, the second draft of

questionnaire was submitted for validation.

The researchers conducted the dry run on May 28 to June 6, 2019 after

the survey instrument were validated and was retrieved on June 7, 2019. The

result of the dry run was the basis whether the questionnaire was ready for the

actual survey.

The actual survey was conducted on June 7 to June 31, 2019 in selected

hospitals as the subject of this study and was retrieved on July 5, 2019.The

copies of the questionnaires were distributed to the chosen employees of

selected private hospitals. The retrieval of the answered questionnaire was one

week after the distribution.

After the distribution and retrieval of the questionnaire, the researchers

asked the supervision of a statistician in analyzing the results. The data gathered

were tallied, interpreted and analyzed.

Statistical treatment of data

The data and information that will be gathered from the survey will be tally,

analyze, and interpret. The data that will be collected will be used to know

compensation management leverage towards employees’ retention and job

satisfaction of private hospital.

The following statistical treatment will be used in the analysis and

interpretation of data. This includes the percentage, weighted mean, frequency,

and independent T-test.

Frequency Distribution. This will be used to arrange data gathered by

categories. This will be used to determine the number of respondents that will

give answer in particular questions particularly in selected hospitals to know the

effects of compensation management on employees’ performance.

Percentage. This was used in the study to find the highest portion in

which the respondents have chosen the highest degree of agreeability or

satisfactory/satisfaction in terms of the effects of compensation management on

employees’ performance.
 Weighted mean. This was used in the study to identify the effects of

compensation management on employees’ performance especially for the

regular employees.

One Way Analysis of Variance. It is a procedure that utilize a set of

calculation on several variances to test the hypothesis that several population

have the same means (Pacho, 2003). It was used to determine if there is a

significant difference on the effect of compensation management when grouped

according to their demographic profile.

Chi-square. It is used to determine the relationship between the effect of

compensation management and the employees’ performance. The x 2 is the test

difference between the observed frequencies and expected frequencies.