ABSTRACT

CRUZADA, MAUREEN B. Leader- Member Exchange and Job Satisfaction Among regular and contractual employees of USHIO Philippines Inc. Bachelor of Science in Psychology, Cavite State University, Indang, Cavite March 2011. Ms. Ma. Alodia C. Mercado.

The study was titled Leader- Member Exchange and Job Satisfaction among regular and contractual employees of USHIO Philippines Inc was conducted at USHIO Philippines Inc, FCIE, Langkaan II, Dasmarias, Cavite. The study aimed to: (1) determine the level of leader- member exchange of the subordinates to their supervisor among the regular and contractual employees of USHIO Philippines Inc; (2) determine the level of job satisfaction among the regular and contractual employees of USHIO Philippines Inc.; (3) determine the significant difference to the level of leader member exchange between regular and contractual employees of USHIO Philippines Inc. (4) determine the significant difference to the level of job satisfaction between regular and contractual employees of USHIO Philippines Inc. and; (5) determine the significant relationship between the level of leader- member exchange and level of job satisfaction among the regular and contractual employees of USHIO Philippines Inc. The respondents of the study were 75 contractual employees and 140 regular employees of USHIO Philippines Inc. The respondents were selected through stratified sampling technique. The instruments used were Leader- Member Exchange (LMX) scale and Job Satisfaction scale. LMX scale had undergone validation process using cronbach alpha and has proven to have content validity. The internal consistency was measured and

vi

had 0.9897 reliability coefficient. Job Satisfaction Scale was lifted from a related study of Ms. Andrelyn Penus. Based on the results, respondents have high level of Leader- Member Exchange which was shown by the mean scores. In addition, respondents are also Satisfied with their work. This implies that respondents are satisfied with work situations and to their work itself. There is a significant difference to the level of Leader- member Exchange between the regular and contractual employees. Regular employees have higher level of relationship to their supervisors than the contractual employees. There is also a

significant difference to the level of Job Satisfaction between regular and contractual employees. Regular employees have higher level of Satisfaction to their job than the contractual employees. Finally, this study shows that there is a significant relationship between LeaderMember Exchange and Job Satisfaction of the employees. This means that the better the relationship that employees have towards their supervisors, the more they are satisfied with their work.

vii

TABLE OF CONTENT

Page BIOGRAPHICAL DATA .. ACKNOWLEDGMENT. ABSTRACT. LIST OF APPENDICES LIST OF TABLES . INTRODUCTION.... Statement of the Problem. Objectives.. Hypotheses Significance of the study.. Scope and Limitation of the study... Time and Place of the Study..... Theoretical Framework... Conceptual framework Definition of Term.. iii iv v ix x 1 3 4 5 5 6 6 7 9 10

REVIEW OF RELATED LITERATURE.. METHODOLOGY.... Research Design.. Research Respondents Sampling Procedure. Collection of Data

12 34 34 34 35 35

Research Instrument.. ... 37 Method Analysis. 41

RESULT AND DISCUSSION 42 SUMMARY, CONCLUSION, RECOMMENDATION.. 62 Summary. 62 Conclusion 63 Recommendation .... BIBLIOGRAPHY APPENDICES .. 64 65 68

ix

LIST OF APPENDICES

Appendix A B C D E F G H I J K Certification of Completion English Critic Certificate .. Certification of Instrument Validation ... Certification of Data Analysis ... Statistical Analysis.... Letter of Request .. Request for Oral Defense . Program of Work .. Budgetary Estimate . Routing Slip ... Curriculum Vitae ...

Page 67 69 71 73 75 104 106 110 114 117 119

LIST OF TABLES

Table 1 2 Level of LMX among the employees of USHIO Philippines Inc. Frequency distribution of the respondents in job satisfaction

Page 42 47

Difference in the Level of LMX between Regular and Contractual Employees

50

Difference in the Level of JS between Regular and Contractual Employees

55

Relationship between Leader- Member Exchange and Job Satisfaction

58

xi

RESULTS AND DISCUSSION

This chapter shows the interpretation, presentation of analysis of each data. It also presents the results gathered by the researcher regarding the level of leader- member exchange and job satisfaction among regular and contractual employees of USHIO Philippines Inc. Table 1 presents the level of leader- member exchange among the regular and contractual employees of USHIO Philippines Inc. (UPI). It reveals the mean score of the employees on the four scales of leader- member exchange. The respondents have the total mean score of 2.93 which falls to the high level of leader- member exchange.

Table1. Level of Leader- Member Exchange among the employees of USHIO Philippines Inc.
LeaderMember Exchange Very low Low Affect High Very high Very low Loyalty Low High Very high Very low Contribution Low High Very high Very low Contractual f 5 43 21 6 3 31 34 7 2 17 50 6 0 % 6.7 57.3 28.0 8.0 4.0 41.3 45.3 9.3 2.7 22.7 66.7 8.0 0 f 1 15 86 38 1 9 79 51 0 11 69 60 0 Regular % .7 10.7 61.4 27.1 .7 6.4 56.4 36.4 0 7.9 49.3 42.9 0 f 6 58 107 44 4 40 113 58 2 28 119 66 0 Total % 2.8 27.0 49.8 20.5 1.9 18.6 52.6 27.0 .9 13.0 55.3 30.7 0 2.94 2.92 2.75 Mean

Respect

3.09

47 with supervisor construct. Their results indicated that subordinate affect, loyalty respect and contribution, accounted for unique variance in satisfaction with supervisors. Table 2 reveals the level of job satisfaction of the respondents. This shows that 1 or .5 percent of the respondents was Very Dissatisfied, 14 or 6.5 percent were Dissatisfied, 151 or 70.2 percent were Satisfied and 49 or 22.8 percent were Very Satisfied. The respondents got the total mean score of 2.95 that falls to the Satisfied level of Job Satisfaction. This means that the respondents were satisfied in the work environment, work situations and work itself. The satisfaction in this level is high level pleasurable emotional state resulting from appraisal to his job. A respondent satisfies with how employers provide a comfortable work environment that supports productive work.

Table 2. Frequency distribution of the respondents in job satisfaction

Contractual Job Satisfaction Very dissatisfied Dissatisfied Satisfied Very Satisfied f 1 10 59 5 % 1.3 13.3 78.7 6.7 f 0 4 92 44

Regular % 0 2.9 65.7 3.4 f 1 14 151 49

total % .5 6.5 70.2 22.8

Mean-2.95 SD- 0.344 Verbal Interpretation- Satisfied Legend: 1.00- 1.74- Very Dissatisfied 1.75- 2.49- Dissatisfied 2.50-3.24- Satisfied 3.25- 4.00- Very Satisfied

55 Table 4 shows the level of job satisfaction between the regular and contractual employees of UPI. It reveals that the regular employees got a mean score of 3.06 while the contractual employees got 2.72. The hypothesis of no significant difference to the level of job satisfaction between regular and contractual employees was rejected. This means that the employment status affects the satisfaction of the employees to their job.

Table 4. Difference in the Level of Job Satisfaction between Regular and Contractual Employees

Job Satisfaction

Mann-Whitney Z- Test

pvalue

Remarks

Verbal Interpretation

Job Satisfaction

-7.322

.000

Reject

Significantly Different

p- value .05- Reject Ho p- value > .05- Accept Ho

As stated in Table 4, regular employees have higher level of job satisfaction than the contractual employees. This may be because regular employees have better benefits and opportunities in the company than the contractual employees. Their jobs are more secure while the contractual employees have less job security since they are in fixedterm contract. Other factors that contribute to job satisfaction like supervision, advancement (promotion), salary, recognition and interpersonal relations might not also be satisfied by the contractual than the regular employees. This is supported by the study of Kaiser (2002), Booth et al. (2002), Bardasi and Francesconi (2004) and DAddio et al. (2007) which studied job satisfaction in