1

Chapter 1

THE PROBLEM AND ITS SETTING

Introduction

Customer satisfaction has been a subject of great interest to

organizations and researchers alike. The importance of customer

satisfaction diminishes when a firm has increased bargaining power. In

researching satisfaction, firms generally ask customers whether their

product or service has met or exceeded expectations. Thus, expectations

are a key factor behind satisfaction. When customers have high

expectations and the reality falls short, they will be disappointed and will

likely rate their experience as less than satisfying. For this reason, a

luxury resort, for example, might receive a lower satisfaction rating than

a budget motel even though its facilities and service would be deemed

superior in 'absolute' terms. Within organizations, customer satisfaction

ratings can have powerful effects. They focus employees on the

importance of fulfilling customers’ expectations.

According to Nick (2009), the word “service” is widely used to

“indicate an industrial sector that “do things for you”. The use of a

service can be characterized as a consumption process as opposed to

outcome consumption, Furthermore, based on the study of Grönroos

Christian (2008), the process nature of services, the fulfilment of

promises given through external marketing is dependent on the attitudes

and behaviour of a large number of part-time marketers

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Furthermore, will introduce our empirical context by highlighting

why it is of particular interest to study service quality and customer

satisfaction in various restaurants in Iligan City, and why we choose to

use the SERVQUAL model and MOTIVATOR-HYGIENE THEORY for our

research. These will then lead us to clearly stating our research

questions and research purpose in order to have a road map for our

study. This will allow new actionable strategies resulting in more diverse

practical implications for practice. Unfortunately, these early

perspectives have not significantly advanced the progress of satisfaction

work for some time and it was not until many and diverse perspectives

were integrated, elaborated, and extended that others began the study of

conceptual satisfaction in earnest. Moreover the main objective of this

research is to know the needs and wants of customers and best staff

services in various restaurants particularly in Iligan City.

The principal objective of organizations is to maximize profits and

to minimize cost. Profit maximization can be achieved through increase

in sales with lesser costs. One of the factors that can help to increase

sales is customer satisfaction, because satisfaction leads to customer

loyalty, recommendation and repeat purchase. The quality of service has

become an aspect of customer satisfaction.

Indeed, the researchers aim to determine the staff service among

the staff in various restaurant especially in the strategies they offer to the
 3

customer as well as to develop better understanding on staff service and

customer satisfaction.

Theoretical Framework

The theories used in this study serve as a framework for the

researchers to organize the schema of the study. This study is anchored

on the theory of customer satisfaction and theory of service quality. In

this chapter, we present all the concepts that are important to our study.

Concepts such are service, quality, service quality, customer satisfaction,

customer’s expectations and perceptions are discussed. Also, a proper

explanation of the SERVQUAL model is outlined in this chapter. The

various dimensions (tangibles, reliability, responsiveness, assurance,

empathy) of the SERVQUAL model are discussed. Models measuring

service quality and customer satisfaction are discussed as well. We, the

researchers try to bring out the relationship between service quality and

customer satisfaction. The main reason for covering this chapter is to

enhance our understanding of the main theories involved in our study

and to answer our research questions. The SERVQUAL instrument has

been widely applied in a variety of service industries, including tourism

and hospitality. The instrument was used to measure employee quality

as well (Parasuraman et. Al., 1991).

The Motivator – Hygiene Theory (MHT), also known as the Two-

Factor or the Satisfier-Dissatisfier theory, proposes two sets of needs -

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motivator and hygiene. The former refers to the nature of the work and

the level of achievement and responsibility, while the latter refers to

aspects of the work environment such as pay and supervision. Motivator

needs produce job satisfaction and hygiene needs can create job

dissatisfaction if the working conditions are inadequate. However, even if

the working conditions are outstanding, hygiene needs cannot produce

job satisfaction (De Leon, 1993).

Motivating’ factors like recognition, achievement, work itself,

growth need to be met in order for an employee to be satisfied with work.

On the other hand, at the absence of ‘hygiene’ factors such as, working

conditions, relationship peers, love of money, job satisfaction, work

security, and pay satisfaction (Herzberg, 1987).

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Conceptual Framework

The study is anchored on the concept of identifying the level of

employees’ job satisfaction and its effect on customers’ satisfaction

among selected restaurants in Iligan City.

This study definitely treats both independent and dependent

variables. The independent variables pertain to the age, civil status,

gender, and estimated monthly income while the dependent variable

includes the staff service. Also their services rendered based on the staff

service, and job satisfaction is included.

The profile of the respondents considered was believed to have

significance in the identification of the customer’s satisfaction on the

service rendered by the said restaurant staff. The respondent’s age,

gender, civil status and estimated monthly income would somehow

provide information on their preferred service rendered considering the

profile of the respondents. Respondents’ assessment on the level of

customer satisfaction of the service rendered in terms of service, proper

hygiene and attitude and job satisfaction is to be investigated to

determine the significant data on this aspect which will lead to the

generalization for the level of customer satisfaction. correlations on the

identified variables will be obtained to investigate on the significant

differences of respondent’s level of satisfaction when their profile as of

age, gender, civil status and estimated monthly income are to be

considered.
 WORK SECURITY

ACHIEVEMENT
PAY WORK ITSELF
SATISFACTION
N

LOVE OF MONEY
RECOGNITION

JOB
SATISFATCION
JOB
SATISFACTION GROWTH

WORK
CONDITION
RELATIONSHIP
PEERS

Figure 2. Conceptual Model

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PROFILE IN JOB SATISFACTION IN PERFORMANCE IN

TERMS OF: TERMS OF: TERMS OF:

 Age MOTIVATORS (INTRINSIC)  Tangible

 Sex  Reliability
 Civil Status  Achievements  Responsiveness
 Average Monthly  Work itself  Assurance
Income  Recognition  Empathy
s  Growth

HYGIENE FACTOR (Extrinsic)

 Work security
s  Relationship peers
 Work condition
 Job Satisfaction
 Love of money
 Pay Satisfaction

Figure 1. Research Paradigm of the Study

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Statement of the Problem

This study aimed to know the level of employees’ job satisfaction

and its effect on customers’ satisfaction among selected restaurants in

Iligan City. Specifically the researchers sought to answer the following

questions:

1. What is the profile of the respondents in terms of:

1.1 Age;

1.2 Sex;

1.3 Civil Status and;

1.4 Average Monthly Income?

2. What is the employee’s level of job satisfactions in various restaurant’s

in terms of:

2.1 Achievements;

2.2 Work Itself;

2.3 Recognition;

2.4 Growth;

2.5 Work Security;

2.6 Relationship peers;

2.7 Work Condition;

2.8 Job Satisfaction;

2.9 Love of Money;

2.10 Pay Satisfaction;

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3. Is there a significant difference on the respondents’ level of job

satisfaction when grouped according to their profile?

4. What is the level of satisfaction in various restaurant’s in terms of:

1. Tangible;

2. Reliability;

3. Responsiveness;

4. Assurance; and

5. Empathy?

5. Is there a significant relationship between the level of job satisfaction

and the level of customer satisfaction?

6. Is there a significant effect on level of job satisfaction to the level of

customer satisfaction?

Null Hypotheses

From the foregoing statement of the problem, the following null

hypotheses were tested:

Ho1: There is no significant relationship between the level of job

satisfaction and the level of customer satisfaction.

Ho2: There is no significant effect on level of Job Satisfaction to the

level of customer Satisfaction.

Significance of the Study

This research study aimed to determine and analyze the Level of

the Customer’s Satisfaction and Its Effect to Staff Services on various

 10

restaurants in Iligan city. This study will help to determine the needs

and wants of customer in term of service, and job satisfaction.

CHRM students. Through this study, they can determine and can

give relevant information of the services offered by the various

restaurants in Iligan city.

CHRM faculty. This study would serve as a guide for HRM faculty

that they must also offer the students an On Job Training as an

alternative practice or experience for the students to be Globally and

Internationally competitive. This would also a basis for academic/subject

enhancement.

Customer’s. This study would help to determine the best

restaurant that offers excellent service to a wide variety of amenities.

Restaurant Management. This would determine the

achievements of the various restaurants in Iligan City for them to

enhance more their service being rendered to the customers. This would

also be beneficial to them as they meet there competitors when it comes

to the best restaurant that offers excellent service as to provide the

management a relevant of the things they must improve and towards its

mission and vision.

Future Researcher. For future related to job satisfaction and/or

customer satisfaction, which in turn would significantly benefit different

stakeholders in the field.

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Scope and Delimitation of the Study

The researchers need to define the scope of research in order to

make things clear. They focused on the various restaurants in Iligan city.

Restaurants will include those of all sizes be it small or big. The

researchers are interested in evaluating how costumers perceive service

quality in this restaurant in general. They assume that most of these

restaurant offer similar services and assistance to their customers. This

study is limited to restaurants in Iligan City because our sample is

drawn from those living in Iligan City and do have experiences with the

restaurant in the town. In this study, the word “customers” will refer to

students in St. Michael’s College who can be considered customers as

well. Factors considered for level of the customers satisfaction which

include of performance Services and job satisfaction.

Definition of Terms

To give the readers a better understanding of this study, the

following terms are defined conceptually and operationally.

Customer Satisfaction. It refers to a customer’s experience that

exposes a supplier’s behavior on customer’s expectation. It also depends

on how efficiently it is managed and how promptly services are provided

(Ingerose, 2005). As used in this study, it refers to the good impression of

customers to various business aspects of marketing, product

manufacturing, quality of products and services.

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Job Satisfaction. It is a pleasurable emotional state resulting from

the appraisal of one's job (Magloff, 2019). As used in this study, it refers

to the attitudes of employees taking into account their feelings, beliefs

and behaviors.

Restaurant. The term refers to a public place that provides foods

and beverages on a commercial basis (fandbfood.com, 2017). As used in

this study, the term refers to a public place which opens to all for selling

food and beverages to any person aimed to fulfill a need and to maximize

satisfaction.
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Chapter 2

REVIEW OF RELATED LITERATURE AND STUDY

This section consists of related literature and studies obtained

from several sources which have direct bearing on the study being

conduct. These ideas then had become indispensable factors as they

integrated ideas, concepts and principles in substantiating the various

results. These topics also situated the importance of the research topic.

Related Study

Those who buy the goods or services provided by companies are

customers. In other words, a customer is a stakeholder of an

organization who provides payment in exchange for the offer provided by

the organization with the aim of fulfilling a need and to maximize

satisfaction. Sometimes the term customer and consumer are confusing.

A customer can be a consumer, but a consumer may not necessarily be a

customer.

When a consumer/customer is contented with either the product

or services it is termed satisfaction. Satisfaction can also be a person’s

feelings of pleasure or disappointment that results from comparing a

product’s perceived performance or outcome with their expectations. As a

matter of fact, satisfaction could be the pleasure derived by someone

from the consumption of goods or services offered by another person or

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group of people; or it can be the state of being happy with a situation.

Satisfaction varies from one person to another because it is utility.

On the other hand, client happiness, which is a sign of customer

satisfaction, is and has always been the most essential thing for any

organization. Customer satisfaction is defined by one author as the

consumer’s response to the evaluation of the perceived discrepancy

between prior expectations and the actual performance of the product or

service as perceived after its consumption hence considering satisfaction

as an overall post-purchase evaluation by the consumer.

According to Levy (2009) measuring customer satisfaction could be

very difficult at times because it is an attempt to measure human

feelings. Likewise it is the simplest way to know how customers feel, and

what they want. It further conceptualized into transaction-specific and

cumulative. Following the transaction specific, customer satisfaction is

viewed as a post-choice evaluation judgment of a specific purchase

occasion until present date; researchers have developed a rich body of

literature focusing on this antecedents and consequences of this type of

customer satisfaction at the individual level. Cumulative customer

satisfaction is an overall evaluation based on the total purchase and

consumption experiences with a product or service over time. This is

more fundamental and useful than transaction specificity customer

satisfaction in predicting customer subsequent behavior and firm’s past,

 15

present and future performances. It is the cumulative customer

satisfaction that motivates a firm’s investment in customer satisfaction.

In order for a restaurant’s offer to reach the customers there is a

need for services. These services depend on the type of product and it

differs in the various organizations. Service can be defined in many ways

depending on which area the term is being used. An author defines

service as “any intangible act or performance that one party offers to

another that does not result in the ownership of anything” In all, service

can also be defined as an intangible offer by one party to another in

exchange of money for pleasure. Quality is one of the things that

consumers look for in an offer, which service happens to be one. Quality

can also be defined as the totality of features and characteristics of a

product or services that bear on its ability to satisfy stated or implied

needs. It is evident that quality is also related to the value of an offer,

which could evoke satisfaction or dissatisfaction on the part of the user.

Motivating’ factors like recognition, achievement, work itself, growth need

to be met in order for an employee to be satisfied with work. On the other

hand, at the absence of ‘hygiene’ factors such as, working conditions,

relationship peers, love of money, job satisfaction, work security, and pay

satisfaction (Herzberg, 1987).

Furthermore, service quality in the management and marketing

literature is the extent to which customers' perceptions of service meet

and/or exceed their expectations for example as defined by (Zeithaml,

 16

2005). Thus service quality can intend to be the way in which customers

are served in an organization which could be good or poor. According to

Parasuraman (2009), service quality is “the differences between customer

expectations and perceptions of service”. They argued that measuring

service quality as the difference between perceived and expected service

was a valid way and could make management to identify gaps to what

they offer as services.

In the study of customer expectation factors, (Soriano 2002) found

that after quality of food, quality of service was ranked the second most

important factor in determining the customer’s decision to return to the

restaurant. Then, the study of the measurement of tourist satisfaction

with restaurant service, a segment-based approach indicated that there

were different segments seeking different benefits Yuksel &Yuksel,

(2002). Yuksel & Yuksel (2002) mentioned these differences and proved

that service quality had the most significant effect on dining satisfaction

at the aggregate market level. Based on the previous literature, the

researcher believes it is important to include service quality in this study.

In Soriano’s (2002) study about customer expectation factors in

restaurants, he stated that the price to be paid for a service determines

the level of quality to be demanded. Customers have raised their

expectations with regard to quality and good service, while seeking a

better value for their money. In this study, (Soriano 2002) found that
 17

service and value of meal are equally important when compared with all

the other factors.

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Chapter 3

RESEARCH METHOD

This chapter involves presenting and motivating the choice of

method of collecting and analyzing data, from both a theoretical and

practical point of view, compared to the relative advantages and

disadvantages of other alternative methods that may be more or less

appropriate to the context of the study. It presents the adequate facts

which will be used to treat the data which will be collected. Thus, this

chapter contains primarily the locale of the study, respondents of the

study, sampling method used, research instruments, data gathering

procedure and the statistical treatment of data.

Locale of the Study

The study was conducted in Iligan City, specifically at the various

restaurants in Iligan City. The customer’s were identified as respondents

of this study and considered as the direct customers’ of various

restaurants in Iligan city.

Respondents of the Study

The respondents of this study were the 100 customers from

various restaurants in Iligan City. The selected respondents shall be

considered as the key informants of this research. Thus, this study gives
 19

assessment and emphasis on the staff service, and job satisfaction

rendered by their staff.

Sampling Method Used

The researchers used purposive sampling method in choosing

respondents of the study since its focus is on a particular characteristic

of a population of a certain interest. Respondents are to be chosen based

on their similar characteristics as specified in their field of work

Research Instruments

The research instrument used in the study is the researcher-made

questionnaire. This was utilized to gather the needed data. The survey

questionnaire was composed of three parts: Part I was the Profile of the

respondents and Part II was the questions regarding the indicators in

assessing the Level of Satisfaction of the Respondents in terms of

performance Services Part III was the questions regarding with the job

satisfaction of the staff on various restaurants in Iligan city..

Data Gathering Procedure

The researcher formally started the conduct of the study through

obtaining a letter of permission from the dean of the College of Hotel and

Restaurant Management and the Thesis adviser duly approved by the

Vice President for Academic affairs. Upon approval, the said letter was
 20

presented to the restaurant owner for approval and allowing the

researchers to conduct research to their valued customers as the

respondents of this study. Once approved, the researchers personally

distributed the questionnaire to the respondents at their favorable time

during or after dining with due consideration and consent. The

respondents were given enough time to finish answering the

questionnaire. After which the instruments were then collected and

gathered by the researchers, to be checked and subjected to data

analysis.

Statistical Treatment of Data

To analyze and interpret the data gathered, the following statistical

tools were employed.

Frequency and Percentage Distribution. Used to describe the profile of

the respondents in terms of age, gender, civil status, and estimated

monthly income.
Weighted Mean. This was used to describe the level of job satisfaction

and the level of customer’s satisfaction.

Analysis of Variance (ANOVA). Used to determine the significant

difference on the level of job satisfaction and the respondent’s profile.

Pearson Product Moment of Correlation. Utilized to determine the

relationship between the level of job satisfaction and the level of

customer satisfaction.
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Chapter 4

PRESENTATION, ANALYSES, AND INTERPRETATION OF DATA

This chapter presents the analyses and interpretation of the gathered

data. This section contains five (5) parts; part I is about the profile of the

respondents in terms of age, civil status, sex, and average monthly

income. Part II is on employees’ level of job satisfaction. Part III is

regarding customers’ level of satisfaction. Part IV is on significant

difference in customers’ level of satisfaction when grouped according to

profile. Part V is about significant relationship between the level of job

satisfaction and the level of customer satisfaction.

I. Profile of the Respondents

Table 1.1 Age of the Respondents

Age of the Respondents Frequency Percent

20 - 29 years old 41 41.00
30 - 39 years old 32 32.00
40 - 49 years old 20 20.00
50 - 59 years old 7 7.00
Total 100 100.00

Table 1.1 reveals that forty one or 41 percent of the respondents

belonged to an age ranges from 20 – 29 years old and thirty two or 32

percent are 30 – 39 years old while seven or 7 percent are within the age

range of 50 – 59 years old. This implies that the common customers who

dine in restaurant in Iligan City were young adults. Young adult

customers are the true digital natives. The internet is their means of
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expression and consumption. They are used to having brands become

part of their lifestyle and day-to-day life. It is natural for them to look up

opinions online and read their friends’ posts as a form of assurance

before making a purchase. They are aspirational and entrepreneurial,

which is why they have a greater appreciation for companies, businesses

and brands that use positive and altruistic messages and that seek to

continuously improve Lane (2019). This is supported by the data of the

Philippine Statistics Authority (PSA) that as of July 2018, majority of the

labor force (66.7 percent) and guest population in any business

establishments are young adults.

Table 1.2 Civil Status of the Respondents

Civil Status of the Respondents Frequency Percent

Married 61 61.00
Single 32 32.00
Widow 4 4.00
Separated 3 3.00
Total 100 100.00

Table 1.2 shows that sixty one or 61.00 percent of the respondents

were married and thirty two or 32.00 percent single while three or 3 .00

that were separated and the other 4 percent are widowed. Data depicts

that majority of the respondents were married. It implies that the

respondents are young married people who prefer the wholesome meals

which are light on the pocket (Salman, 2015). In the latest release of the

Philippine Statistics Authority (PSA), the median age of brides and

grooms in the Philippines were at 27 and 29, respectively which

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comprises about one-third of the brides and the grooms married between

ages 25-29 years old, where grooms with 157,407 or 36.2% of the total

marriages and brides with 148,618 or 34.2%.

Table 1.3 Sex of the Respondents

Sex of the Respondents Frequency Percent

Male 51 51.00
Female 49 49.00
Total 100 100.00

Table 1.3 illustrates that fifty one or 51.00 percent are males and

forty nine or 49.00 percent are females. It indicates that majority of the

respondents are male. Consequently, males prefer carryout service more

often than females. They practice and prefer mainly by quick service

restaurant and spend much per month going out to eat (Bojanic, 2015).

Table 1.4 Average Monthly Income of the Respondents

Average Monthly Income of the Respondents Frequency Percent

PhP10,000 and below 66 66.00
PhP10,001 - PhP20,000 28 28.00
PhP20,001 - PhP30,000 4 4.00
PhP30,001 - PhP50,000 2 2.00
Total 100 100.00

Table 1.4 demonstrates the average monthly income of the

respondents. There were sixty six or 66.00 percent who earns an income

of P10,000 and below. Meanwhile there were two or 2.00 percent that

have an income of P30,001 – P50,000. Data depicts that majority of the

 24

respondents are low income earners. This implies that they belong to the

lower class of the society. The members of the lower or poor class

comprise about 70 percent of the population but they only earn or share

10 percent of the wealth. They often cannot earn enough to be able to

buy necessities in life, save for emergencies or for future needs (Mhlanga,

2015).

Table 2.1 Employees’ Level of Job Satisfaction on Achievement

Standard
Achievement Mean Deviation Description
The staffs are satisfied to work to
their restaurants because it
recognizes their achievements. 3.92 0.92856 Very Satisfied
The restaurants encourage the staff
to work to the best of their abilities. 3.69 0.73437 Very Satisfied
The staff gets a sense of personal
accomplishment. 3.69 0.80019 Very Satisfied
The restaurant is able to maximize
employee potential. 3.66 0.83145 Very Satisfied
Staffs are inspired on working hard
to have a good performance. 3.72 0.88854 Very Satisfied
Very
Achievements Mean 3.74 0.53551 Satisfied
Legend:
4.21 – 5.00 Extremely Satisfied
3.41 – 4.20 Very Satisfied
2.61 – 3.40 Moderately Satisfied
1.81 – 2.60 Slightly Satisfied
1.00 – 1.80 Not Satisfied
 25

Table 2.1 shows the level of satisfaction of the respondents as to

achievement. The highest mean score of 3.92 with very satisfied

description on item the staffs are satisfied to work to their restaurants

because it recognizes their achievements indicating that recognition

through appreciation of capability can motivate employees to be able to

maximize their talents which become the most important dimension in

job security. It allows workers not only stretch their skills and learn a

few new ones but also imagine future potential with the company.

People who are motivated by their work rather than by their

compensation no matter what that salary amount is are three times as

likely to be engaged at work and report greater job satisfaction than

people who approach their work as another day (Trimarchi, 2019) .

Moreover, data depicts the respondents were “Very Satisfied” in the

area of achievement with an overall mean score of 3.74. It implies that

employees are glad that their accomplishments are being acknowledged

by their managers. It can also be noted that appreciation is a

fundamental human need. Employees respond to appreciation expressed

through recognition of their good work because it confirms their work is

valued by others. When employees and their work are valued, their

satisfaction and productivity rises, and they are motivated to maintain or

improve their good work (Harrison, 2018).

Table 2.2 Employees’ Level of Job Satisfaction on Work Itself

Work Itself Mean Standard Description

 26

Deviation
How empowered are the staffs
while doing their job. 3.69 0.87265 Very Satisfied
Staffs receive appropriate training
to enhance their effectiveness. 3.86 0.75237 Very Satisfied
The staffs are flexible and learn
rapidly about hanging markets. 3.76 0.84232 Very Satisfied
The supervisor encourages the staff
to take initiative to their job. 3.60 0.84087 Very Satisfied
The staffs had enough to do their
work. 3.69 0.84918 Very Satisfied
Work Itself Mean 3.72 0.62280 Very Satisfied

Table 2.2 portrays the level of satisfaction in the work itself. This

facet was rated as “Very satisfied” with a mean score of 3.72. The part on

“Staffs receive appropriate training to enhance their effectiveness” has a

mean score of 3.86, implying they were very satisfied. Meanwhile in the

aspect “The supervisor encourages the staff to take initiative to their job”

was assessed as “very satisfied” (3.60 mean).

The inquiry reveals the respondents were very satisfied in their

work itself. This infers that the respondents were contented with their

work. According to Villanova University (2015), employees want to feel

respect and trust, while working in a safe environment, with good pay

and opportunities to advance. When the company develops ways to

deliver on these important factors, it can satisfy employees and help

build a stronger, more stable and profitable future.

Furthermore, the data implies that appropriable work itself has

positive impact an employee’s performance. According to Brabete (2010)

 27

high-level of appropriable work itself will result in high level of

employees’ work performance.

Table 2.3 Employees’ Level of Job Satisfaction on Recognition

Standard
Recognition Mean Deviation Description
The staff is satisfied when he/she
achieve or complete a task. 3.75 0.83333 Very Satisfied
The Restaurants value their work. 3.67 0.75284 Very Satisfied
The staff receives recognition when Moderately
they perform above expectations. 3.32 0.78983 Satisfied
The staff is rewarded for exceeding
their goals. 3.58 0.76779 Very Satisfied
The manager praises for their job
well done. 3.65 0.74366 Very Satisfied
Recognition Mean 3.59 0.52759 Very Satisfied

Table 2.3 displays the respondents’ level of satisfaction as to

recognition. The highest mean score 3.75 rated as very satisfied on item

“The staff is satisfied when he/she achieve or complete a task”. This

means that the respondents achieved job satisfaction when self

-recognition of employees is identified and their effort they put in their

job and the work results they achieved are valued and appreciated

(Zojceska, 2019).

Moreover, in the trait of “The staff receives recognition when they

perform above expectations” was evaluated as “Moderately Satisfied” with

a lowest mean score of 3.32 implying that the respondents were

moderately satisfied when it comes to recognition. It implies employees

feel good that their efforts were admired. However, the employees were
 28

not so admired by the restaurant managers in Iligan City. There is a

moderate appreciation shown to their efforts. The managers/owners of

restaurants take not so much time to demonstrate how much of a

measurable impact of employees efforts on the business. According to

Zojceska (2019) employee recognition is the key to employee satisfaction.

Employee recognition is a very effective and easily implemented, yet often

overlooked strategy for improving employee’s satisfaction. The main goal

of employee recognition is to let employees know that the effort they put

in their job and the work results they achieved are valued and

appreciated both financial and nonfinancial rewards have a role in

influencing job satisfaction, which ultimately impacts employee

performance. This can be done in many ways such as public recognition

or acknowledgment via an award or a certificate, obtaining a high level of

achievement through evaluations and promotion or increase in the scope

of work or responsibility to show trust.

Table 2.4 Employees’ Level of Job Satisfaction on Growth

Standard
Growth Mean Deviation Description
Will staff satisfy to improve their
performance, skills and performance Very
during their duties 3.57 0.97706 Satisfied

Staffs are more efficient in their job. 3.70 0.65905 Very

Satisfied
Staff have more responsibilities since Very
when their started. 3.51 0.79766 Satisfied
Staffs are giving equal opportunity for Very
advancement of the restaurants. 3.80 0.80403 Satisfied
The staff are continuously learning 3.84 0.78779 Very
 29

and trying to improve one another. Satisfied

Very
Growth Mean 3.68 0.48173 Satisfied

Table 2.4 shows the respondents’ level of satisfaction on the

growth area. This facet was rated as very satisfied (3.68 mean). On the

aspect “The staff are continuously learning and trying to improve one

another” it was evaluated as very satisfied (3.84 mean). However, “Staff

have more responsibilities since when their started” was rated as very

satisfied (3.51 mean).

Study depicts the respondents were very satisfied when it comes to

growth. It implies that they feel that there is development in them

personally and professionally. This would lead employees to be more

engaged at work if they know they can grow rather than feel like they are

stagnant. In a study by Quantum Workplace, Year employees listed

professional growth opportunity as one of their highest drivers of

engagement. Conversely, exiting employees listed lack of growth

opportunity as the second highest reason for leaving. Christopher Rice,

CEO of Blessing White said, "And while raises may encourage some

workers to stick around, our findings suggest that employees especially

high performers will remain in jobs that challenge them, utilize their

expertise, and provide meaning.

Table 2.5. Employees’ Level of Job Satisfaction on Work Security

Standard
Work Security Mean Deviation Description
Workplace is safe and comfortable 3.61 0.80271 Very Satisfied
 30

to work with.
Staff is feeling safe at their work
area. 3.60 0.76541 Very Satisfied
They know what to do in case of
emergency 3.59 0.87727 Very Satisfied
Work stops immediately if safety
issue arises. 3.46 0.70238 Very Satisfied
Staff is able to maintain a high
level of productivity while
maintaining safety. 3.62 0.81377 Very Satisfied
Work Security Mean 3.58 0.48349 Very Satisfied

Table 2.5 portrays the level of satisfaction in terms of security. The

respondents felt that they were “very satisfied” (3.58 mean) in this area.

The item “Staff is able to maintain a high level of productivity while

maintaining safety” was assessed as “very satisfied (3.62 mean).

However, in “Work stops immediately if safety issue arises” it was rated

as “moderately satisfied” (3.46 mean).

Data indicates the respondents were very satisfied in their work

security. It can be interfered that they feel safe in their job. They sensed

they will be staying in their job for a longer period of time and the

workplace has a safe environment. Creating a sense of security for

employees is one of the best ways that companies can not only attract

and retain talent, but also ensure that they are getting the best possible

work from their people. By communicating to the employees that their

jobs are safe and that they are a valued part of the team, the company

can create loyalty among employees, and a desire among them to work

hard (Hamlin, 2018).

 31

Table 2.6. Employees’ Level of Job Satisfaction on Relationship with

Peers

Standard
Relationship with Peers Mean Deviation Description
Staff can easily go to the
supervisor if there is a problem. 3.60 0.91010 Very Satisfied
Managers show fairness and
respect in their in interactions
with employees. 3.66 0.62312 Very Satisfied
Conflicts are resolved in a positive
and constructive manner. 3.56 0.76963 Very Satisfied
Workplace and issues are resolved
fairly and quickly. 3.44 0.89126 Very Satisfied
Managers are mutual trust and
respect. 3.53 0.74475 Very Satisfied
Relationship with Peers Mean 3.56 0.49261 Very Satisfied

Table 2.6 displays the level of satisfaction of the respondents as to

relationship with peers. They rated it as “very satisfied” (3.56 mean). In

the aspect of “Managers show fairness and respect in their in

interactions with employees” it was evaluated as “very satisfied” (3.66

mean). In “Workplace and issues are resolved fairly and quickly” was

assessed as “very satisfied” (3.44 mean).

The respondents were very satisfied with the relationship of their

managers to their peers. It can be interfered that there is a good

relationship between managers and employees. This situation could lead

to employees helping each other. According to Dickson (2015) friends at

work offer a priceless support system when things get tough. Sixty-one

percent of employees mentioned support from their colleagues at work

was instrumental in helping them through life's challenges.

 32

Table 2.7 Employees’ Level of Job Satisfaction on Working

Condition

Standard
Working Condition Mean Deviation Description
How proudly satisfied to work at
the restaurant for their pleasant
working conditions. 3.73 0.82701 Very Satisfied
The Working Condition is
satisfactory. 3.55 0.78335 Very Satisfied
The staff is feeling positive in most
of the time of their work. 3.62 0.82609 Very Satisfied
Satisfactory in current fixed
working hours 3.56 0.82045 Very Satisfied
Satisfactory with physical
condition 3.56 0.70094 Very Satisfied
Working Condition Mean 3.60 0.50451 Very Satisfied

Table 2.7 shows the respondents level of satisfaction in terms of

working condition. They were very satisfied (3.60 mean) in this aspect. In

“How proudly satisfied to work at the restaurant for their pleasant

working conditions” it was rated as very satisfied (3.73 mean). Meanwhile

in “the Working Condition is satisfactory” was evaluated as “very

satisfactory” (3.55 mean).

Data portrays the respondents were very satisfied with the

restaurants’ working condition. This implies that these establishments

have good working atmosphere. This means the workplace is safe and

healthy. It indicates the workplace is free of health hazards and

dangerous conditions. The physical environment of a workplace greatly

affects the positivity within the firm. Great energy can be created by an,

attractive, comfortable physical environment. A clean work environment

without much clutter allows employees to focus on their goals. Lastly,

 33

an open work environment that is not closed off by cubicles fosters group

communication and helps build relationships between employees

(Pelliccio, 2015).

Table 2.8 Employees’ Level of Job Satisfaction on Job Satisfaction

Standard
Job Satisfaction Mean Deviation Description
Staff are feeling good at their work. 3.57 0.70000 Very Satisfied
The Staff receive personal
satisfaction from doing a good job. 3.81 0.74799 Very Satisfied
The staff are enjoying in coming to
work. 3.43 0.72829 Very Satisfied
Staffs are made to feel that they are Moderately
important of their restaurants. 3.31 0.58075 Satisfied
The staff are feeling satisfied at
their restaurants. 3.42 0.66939 Very Satisfied
Job Satisfaction Mean 3.51 0.44169 Very Satisfied

Table 2.8 reflects the respondents’ level of job satisfaction. This

facet was assessed as “very satisfied” (3.51 mean). In “the Staff received

personal satisfaction from doing a good job” it was rated as “very

satisfied” (3.81 mean). Moreover in “staffs are made to feel that they are

important of their restaurants” it was evaluated as “moderately satisfied”

(3.31 mean).
 34

The results indicate that the respondents are very satisfied in their

job. This implies that they consider their job to be good. They perceive

the company in a positive light. A satisfied employee is not just a

retained employee but an ambassador for the business, internally and

externally. He/she can help dispel the apprehensions of others and can

defend the company in various fora. Happy employees are more loyal to

the company and its objectives, they go the extra mile to achieve goals

and take pride in their jobs, their teams and their achievements

(Bathena, 2018). Furthermore, according to the Employee Job

Satisfaction and Engagement Report by the Society for Human Resource

Management (SHRM), the number of employees who say they are

satisfied with their current job took a big jump, rising from 81% in 2013

to 88% in 2016.

Table 2.9 Employees’ Level of Job Satisfaction on Love of Money

Standard
Love of Money Mean Deviation Description
Salary is attractive for their job 3.83 0.75284 Very Satisfied
Staffs are satisfied with the level of
salary they receive. 3.83 0.75284 Very Satisfied
Their salary matches their job
performances 3.57 0.72829 Very Satisfied
Their salary is fair for their position 3.52 0.70324 Very Satisfied
Staffs are all paid fairly 3.53 0.62692 Very Satisfied
Love of Money Mean 3.66 0.38568 Very Satisfied

Table 2.9 illustrates the respondents’ level of satisfaction as to love

of money. It received a mean rating of 3.66 or very satisfied. In the

aspects of “Salary is attractive for their job” and “Staffs are satisfied with
 35

the level of salary they receive” both were evaluated as “very satisfied”

(3.83 mean). Meanwhile in “Their salary is fair for their position” is was

rated as “very satisfied” (3.52 mean).

Study depicts that the respondents were very satisfied with their

salary. This infers that they were contented with their salary. They felt

their salary is attractive and are very satisfied with their level of salary.

However their salary does not match with their job performance.

According to Acharyya (2017), paycheck is the obvious motivating factor

behind an employees daily ritual of willing, and sometimes unwilling,

servitude to their employers. Moreover based from the study of

Vermandere (2013), about half of their respondents were dissatisfied with

their salary, saying it wasn’t in proportion to their workload. On average,

they said their salary should be raised to be in proportion with the work

they did. Only 1% said they were overpaid. Furthermore The feeling of

not being paid fairly in relation to workload has a negative impact on

motivation, according to the survey.

Table 2.10 Employees’ Level of Job Satisfaction on Pay Satisfaction

Standard
Pay Satisfaction Mean Deviation Description
How satisfied are the staff with
their salary. 3.91 0.87727 Very Satisfied
Well compensated for their work in
restaurant. 3.81 0.69187 Very Satisfied
The staffs are fairly compensated 3.60 0.77850 Very Satisfied
Staff are well satisfied with current
salary 3.80 0.84087 Very Satisfied
Staff are satisfied with the
company’s pay structure. 3.53 0.75819 Very Satisfied
 36

Pay Satisfaction Mean 3.73 0.49513 Very Satisfied

Table 2.10 shows the respondents’ level of pay satisfaction. They

felt they were “very satisfied” (3.73 mean) in this area. In “How satisfied

are the staffs with their salary” it was assessed as “very satisfied” (3.91

mean). It can also be noted that item on “Staffs are satisfied with the

company’s pay structure” was rated as “very satisfied” with a mean score

of 3.53.

Data portrays the respondents were very satisfied with their pay.

This implies they were pleased with their compensation. They were

satisfied with their salary. Moreover they felt they were well

compensated. The study of Shoaib, M., A. Noor, S.R. Tirmizi and S. Bashi

(2010) revealed that attractive and competitive remuneration packages

still ranked as one of the every important factors that affect job

satisfaction because it fulfills the financial and material desires. Salary,

retirement benefits and job security have been shown to be important

personal issues that affect the satisfaction of employees.

Table 2.11 Overall level of Job Satisfaction

Overall Job Satisfaction Mean Standard Deviation Description

Achievements 3.74 0.53551 Very Satisfied
Work Itself 3.72 0.62280 Very Satisfied
Recognition 3.59 0.52759 Very Satisfied
Growth 3.68 0.48173 Very Satisfied
Work Security 3.58 0.48349 Very Satisfied
Relationship with Peers 3.56 0.49261 Very Satisfied
Working Condition 3.60 0.50451 Very Satisfied
Job Satisfaction 3.51 0.44169 Very Satisfied
 37

Love of Money 3.66 0.38568 Very Satisfied

Pay Satisfaction 3.73 0.49513 Very Satisfied
Overall Job Satisfaction 3.64 0.25647 Very Satisfied

Table 2.11 illustrates the level of job satisfaction of the

respondents. They were very satisfied with their job with a mean score of

3.64. Achievements garnered the highest mean rating of 3.74 or very

satisfied, followed by pay satisfaction with a mean score of 3.73 or very

satisfied. While, “job satisfaction” got the lowest mean score of 3.51 from

among the very satisfied rating.

Data depicts the respondents were very satisfied with their job.

This implies that were pleased with the way their employers or managers

handle them. Employees when it comes to satisfaction, like how

management respects employees, whether people can trust senior

management, how secure and clear their career paths are and of course,

how fairly it pays them (Bathena, 2018). Keeping employees engaged

and satisfied takes more than just good pay and benefits. As revealed,

the key job satisfaction aspects were respectful treatment of all

employees as the most important factor in job satisfaction, trust and

security through honest communication and transparency about the

company’s health and long-term viability. Likewise, keeping workers

happy helps strengthen a company in many ways, including lower

turnover, higher productivity and increased profits (Piechowiak, 2019).

II. Customer’s Level of Satisfaction

Table 3.1. Customer’s level of satisfaction in Terms of Tangibility

 38

Standard
Tangibility Mean Deviation Description
Visually attractive parking areas
and building exteriors. 3.75 0.95743 Very Satisfied
Visually attractive dining area 3.72 0.77954 Very Satisfied
Clean, neat and appropriately
dressed staff 3.89 1.05309 Very Satisfied
Restaurant’s decor typical to its
image 3.75 1.05768 Very Satisfied
price range easily readable menu 3.88 1.00785 Very Satisfied
Tangibility Mean 3.80 0.73388 Very Satisfied
Legend:
4.21 – 5.00 Extremely Satisfied
3.41 – 4.20 Very Satisfied
2.61 – 3.40 Moderately Satisfied
1.81 – 2.60 Slightly Satisfied
1.00 – 1.80 Not Satisfied

Table 3.1 portrays the customer respondents’ level of satisfaction

in tangibility. The customers perceive this aspect as “very satisfied” (3.80

mean). “Clean, neat and appropriately dressed staff” was assessed as

very satisfied (3.89 mean). Meanwhile “Visually attractive dining area”

was evaluated as “very satisfied” (3.72 mean).

Study depicts the customer respondents were “very satisfied” with

the tangibility of the restaurants. This implies that the respondents were

glad with the tangible services of the restaurants. They were impressed

with the cleanliness and how the staff dressed. According to the study of

Thai Nguyen University of Education (2018) tangibles are the

restaurant’s physical attributes, which are the first experiences of

customers when they enter the restaurant. The idea is supported by

Chowet (2007) stressing that physical environment and service attitude

 39

are the most important factors in predicting service quality for the

restaurant industry.

Table 3.2. Customer’s level of satisfaction in Terms of Reliability

Standard
Reliability Mean Deviation Description
Service at the promised time 3.70 1.00000 Very Satisfied
Quick correction of wrong service 3.96 0.85185 Very Satisfied
Performing services right the first
time 3.99 0.79766 Very Satisfied
Accurate bill 3.77 0.89730 Very Satisfied
Error-free served order (food) 3.83 0.98530 Very Satisfied
Reliability Mean 3.85 0.69246 Very Satisfied

Table 2.2 illustrates the level of satisfaction on the reliability of

restaurants. This construct was rated as “very satisfied” (3.85 mean). In

“Performing services right the first time” it was assessed as “very

satisfied” (3.99 mean). While “Accurate bill” was rated as “very satisfied”

(3.77 mean).

The study reveals that the respondents were very satisfied with the

reliability of the restaurants. This implies that the establishments could

be relied on their services. Their performance was precise and quick to

correct mistakes. According to Johnson (2003) the attributes of service

reliability are the degree of fulfilled promises, the degree of interest in

solving one’s problems, whether the services are provided right the first

time, whether the services are provided at the time they are promised

and the existence of error-free records.

Table 3.3. Customer’s level of satisfaction in terms of

Responsiveness
 40

Responsiveness Mean Standard Description

Deviation
Maintaining speed and quality of 3.60 0.97442 Very Satisfied
service during busy times
Provision of prompt service 3.37 0.81222 Moderately
Satisfied
Extra effort for handling special 3.79 0.99793 Very Satisfied
requests
Employees are willing to help 3.92 1.09802 Very Satisfied
customers
Employees tell customers when 3.85 1.05768 Very Satisfied
services will be performed
Responsiveness Mean 3.71 0.81968 Very Satisfied

Table 3.3 displays the level of satisfaction on the responsiveness of

restaurants. A weighted mean of 3.71 or “very satisfied” was the

evaluation given in this area. “Employees are willing to help customers”

received the highest rating of 3.92 mean or “very satisfied”. While

“Provision of prompt service” got the lowest assessment of 3.37 mean or

“moderately satisfied”.

Data depicts the customer respondents were very satisfied with the

responsiveness of the staff of the restaurants. This infers that the

restaurant staffs were quick to respond. They were willing to assist their

diners however they need to improve in the area of prompt service. Sean

Meehan and Charlie Dawson, explain in a 2002 "Business Strategy

Review" article that customer responsiveness is accurately and

insightfully giving customers what they need, want or don’t yet know

they want and doing so more quickly than anyone else.

Table 3.4. Customer’s level of satisfaction in terms of Assurance

 41

Standard
Assurance Mean Deviation Description
Employees can answer questions
completely 3.53 1.05844 Very Satisfied
Comfortable and confident feeling 3.70 1.00000 Very Satisfied
Staff provide information about
menu items, their ingredients, and
method of preparation 3.74 0.96001 Very Satisfied
Well-trained, competent and
experienced staff 3.56 1.04756 Very Satisfied
Restaurant supports the Moderately
employees 3.39 1.04345 Satisfied
Assurance Mean 3.58 0.86301 Very Satisfied

Table 3.4 shows the respondents’ level of satisfaction on the

assurance of restaurants. A weighted mean of 3.58 or “very satisfied” was

given in this facet. “Staff provide information about menu items, their

ingredients, and method of preparation” got the highest assessment of

3.74 mean or “very satisfied”. Meanwhile “Restaurant supports the

employees” received the lowest rating of 3.39 mean or “moderately

satisfied”.

Study reveals the customer respondents were very satisfied with

the assurance given by the restaurant. It can be interfered that they were

guaranteed satisfied with the service of the businesses. They were made

aware of the menu of these establishments as to their ingredients, and

method of preparation thereby making them comfortable and confident.

According to Tusa (2013) when quality assurance is done well, it

enhances customer experience through higher levels of first contact

resolution, higher retention rates and more loyalty, and overall customer
 42

satisfaction, which can lead to customers who evangelize your service,

product and brand.

Table 3.5. Customer’s level of satisfaction in terms of Empathy

Standard
Empathy Mean Deviation Description
Employees provide individual
attention 3.77 0.82701 Very Satisfied
Operating hours are convenient to
all customers 3.70 0.57735 Very Satisfied
Anticipation of customers’
individual needs and wants 3.78 0.81128 Very Satisfied
Sympathetic and reassuring
employees 3.48 0.85847 Very Satisfied
Restaurant has customer’s
interest at heart 3.68 0.90877 Very Satisfied
Very
Empathy Mean 3.68 0.53718 Satisfied

Table 3.5 illustrates the respondents’ level of satisfaction on the

empathy of restaurants. They assessed this aspect as “very satisfied”

(3.58 mean). In “Anticipation of customers’ individual needs and wants”

it was rated as “very satisfied” (3.78 mean). Furthermore “Sympathetic

and reassuring employees” was evaluated as “very satisfied” (3.48 mean).

 43

Study portrays the customer respondents were very satisfied with

the empathy of the restaurants. This implies they felt the staff feel for

them. The restaurant staff already foresees their needs and wants as

diners, though staffs are not so sympathetic and reassuring employees.

When customers perceive the company as empathetic, management will

see sales increase. Moreover, employees with strong empathy skills are

also more productive and innovative. When managers and team

members express empathy and a willingness to act compassionately

toward others, it stands to reason that companies with cultures that

encourage empathy would attract highly engaged individuals. Likewise,

empathetic companies also have better retention and higher morale

among employees (Ross, 2018).

Table 3.6. Summary of Customer’s level of satisfaction

Customers' Level of Standard

Satisfaction Mean Deviation Description
Tangibility Mean 3.80 0.73388 Very Satisfied
Reliability Mean 3.85 0.69246 Very Satisfied
Responsiveness Mean 3.71 0.81968 Very Satisfied
Assurance Mean 3.58 0.86301 Very Satisfied
Empathy Mean 3.68 0.53718 Very Satisfied
Overall Mean 3.72 0.58712 Very Satisfied

Table 3.6 pictures the customer respondents’ level of satisfaction

on the services of the restaurants. They were “very satisfied” (3.72 mean)

in this area. The highest rating was given to reliability with a weighted

mean of 3.85 or “very satisfied”. This was followed by tangibility with a

mean score of 3.80 or “very satisfied”.

 44

Study depicts the customer respondents were very satisfied with

the services of the restaurants. This implies this hospitality businesses

provides quality service. These findings were supported by the studies of

Zopiatis and Pribic (2007), which claimed that reported reliability is the

most important expectations dimension, followed by tangibles,

assurance, responsiveness and empathy.

III. Significant Difference in the Customers’ Level of Satisfaction when

Grouped According to Profile

Table 4. Significant difference in the customers’ level of

satisfaction when grouped according to profile

Profile Mean Description p value Description

Age of the Respondents
20 - 29 years old 3.85 Very Satisfied
30 - 39 years old 3.76 Very Satisfied 0.8850 Not Significant
40 - 49 years old 3.82 Very Satisfied
50 - 59 years old 3.65 Very Satisfied
Civil Status of the Respondents
Married 3.75 Very Satisfied
Single 3.70 Very Satisfied 0.7930 Not Significant
Widow 3.69 Very Satisfied
Separated 3.41 Very Satisfied
Sex of the Respondents
Male 3.76 Very Satisfied 0.8260 Not Significant
Female 3.69 Very Satisfied
Average Monthly Income of the Respondents
PhP10,000 and below 3.76 Very Satisfied
PhP10,001- PhP20,000 3.67 Very Satisfied 0.7870 Not Significant
PhP20,001 - PhP30,000 3.65 Very Satisfied
PhP30,001 - PhP50,000 3.44 Very Satisfied
Legend:
p value < 0.05 Significant
 45

p value > 0.05 Not Significant

Table 4 portrays the no significant difference in the customers’

level of satisfaction and the respondent’s profile. However, their mean

scores varies according to age group such ages 20 – 29 got a higher

mean score compared to 30 years old and above. The findings is similar

to Melkis, (2017) found that there is a significant difference in how

customers from different age group perceive price of restaurant or at any

fast food. This could be due to consumers in the 21 – 30 years old age

group, mostly singles and working adults know what they want and they

are less sensitive to prices. They are more willing to spend to get what

they want or desire. And customers in the 31 – 50 years old age group

are mainly working and married with children. They are busy with their

career and family, have limited time to cook and prepare meals.

Therefore, they might prefer to eat meal that is easy to consume, fast,

hassle free, convenient, cheap and affordable. Mainly, fast food price are

more affordable and cheap compare to preparing and cooking at home.

Furthermore, the mean score of male is higher (3.76) compared to

female (3.69) indicating that both differ in terms of level of customer’s

satisfaction. Mansoora (2017) support the notion that gender difference

at service encounter may lead to different customer service outcomes. As

the male-to-male interaction and male-to-female interactions differ

because people behave differently when they interact with the same

gender and with the opposite gender, i n a given particular situation.

 46

Likewise, female customers had higher expectations regarding staff that

was having knowledge and courtesy, while men had higher expectations

regarding staff that was professional and there was no difference in

trustworthiness and staff being competent.

In addition, the customer’s level of satisfaction with respect to

marital status of respondents reveals that from the descriptive statistics

given in Table 4, it is observed that the mean of married customers with

3.75 is more than that of the unmarried customers (3.70) and that of

widow (3.69) and separated (3.41). Thus, it can be inferred that married

customers are more satisfied with the services of restaurant as compared

to the unmarried ones.

Consequently, by analyzing the mean of different income groups

given in Table 4, it can be concluded that respondents in the income

group of above PhP10,000 and below per month have a higher mean

score of 3.76 and are most very satisfied, while customers in the income

group of up to PhP50,000 per month with lower mean score and are

considered least very satisfied with the services of restaurants in Iligan

City.

IV. Significant relationship between the level of job satisfaction and the

level of customer satisfaction.

Table 5. Significant relationship between the level of job

satisfaction and the level of customer satisfaction

Job Satisfaction Indicator value Description

 47

Pearson
Achievements Correlation .348** Weak Positive Relationship
p value 0.0000 Significant
Pearson Moderate Positive
Work Itself Correlation .416** Relationship
p value 0.0000 Significant
Pearson
Recognition Correlation .372** Weak Positive Relationship
p value 0.0000 Significant
Pearson
Growth Correlation .273** Weak Positive Relationship
p value 0.0060 Significant
Pearson Very Weak Positive
Work Security Correlation 0.0150 Relationship
p value 0.8790 Not Significant

Relationship with Pearson

Peers Correlation .318** Weak Positive Relationship
p value 0.0010 Significant
Pearson
Working Condition Correlation .240* Weak Positive Relationship
p value 0.0160 Significant
Pearson Very Weak Positive
Job Satisfaction Correlation 0.1580 Relationship
p value 0.1170 Not Significant
Pearson Very Weak Positive
Love of Money Correlation 0.1380 Relationship
p value 0.1720 Not Significant
Pearson Very Weak Positive
Pay Satisfaction Correlation 0.0650 Relationship
p value 0.5180 Not Significant
Overall Job Pearson Moderate Positive
Satisfaction Correlation .473** Relationship
p value 0.0000 Significant

Legend: 0.81 – 0.99 Very strong positive relationship

0.61 – 0.80 Strong positive relationship
0.41 – 0.60 Moderate positive relationship
0.21 – 0.40 Weak positive relationship
0.0 – 0.20 Very weak positive relationship
0.0 – -0.20 Very weak negative relationship
-0.21 – -0.40 Weak negative relationship
-0.41 – -0.60 Moderate negative relationship
-0.61 – -0.80 Strong negative relationship
-0.81 – -0.99 Very strong negative relationship
 48

Table 5 reveals the significant relationship between the level of job

satisfaction and the level of customer satisfaction on the aspect of

achievement with the p-value of 0.000 implying that employees are the

driving factor behind customer satisfaction. Employee interactions set

the tone for a positive or negative customer experience. When employees

aren’t happy at work, their interactions with customers can, and almost

always will, suffer. Over the course of time, this can have serious

repercussions for a business. Likewise, Jeon (2012) found that

customers who developed a bond with the employees also were likely to

care about employee wellbeing. If customers like the performance of the

employee and express gratitude or satisfaction, in turn, it is also

expected to lead to a higher level of employee satisfaction.

Moreover, data depicts that job satisfaction on work itself has a

significant relationship to customer satisfaction. The p-value of 0.0000

indicates a significant value of work itself to customer service and

satisfaction. This means that any employees who love its work expresses

positive behavior and build healthy relationship to peers and customers.

Generally the mindset of employees to work likes valuable contributors to

a company’s success. Employees understand the important of their role

how their work fits into the bigger picture. They feel like their voices are

being heard and they have respect from their managers. Most

importantly, they were able to come to work and know that the next eight

hours won’t be pure torture but committed service (Prossack, 2019).

 49

In addition, the p-value of 0.000 of recognition on the level of job

satisfaction showed a significant relationship to the level of customer

satisfaction. This implies that recognition play a vital role in determining

the significant performance in job and it is positively associated with the

process of motivation. This further means that employees being

recognized by doing things that acknowledge their accomplishments and

given reward and fair chances of promotion according to employee’s

ability and skills make employee more loyal to their work and become a

source of pertinent workability for the employee. Likewise, when

employees experience success in a challenging occupation which allows

them to exercise their skills and abilities, they experience greater levels of

job satisfaction (Danish, 2010).

Consequently, the p-value of 0.006 on growth as one aspect of job

satisfaction found to have a significant relationship to the level of

customer’s satisfaction. This means that career growth as one of the

needs of organization and building competencies of employees. So

organization’s needs cannot be satisfied without satisfying individual

needs of employee. According to Shujaat (2013) career growth of

employees is positively associated with effective commitment, because

effective commitment will only be done when employees will be satisfied

with their job especially when employees are being given chances to

develop their career then their commitment with that organization would

be higher.
 50

Furthermore, the p-value of 0.0010 on relationship with peers of

job satisfaction indicates significant relationship to the level of

customer’s satisfaction which means that individuals who do better are

somehow better connected and gained positive work performance. It

further attributed to cooperation which every employee is responsible for

solving part of a problem and stimulates communication and contact

with others at work and encourages mutual trust. It also develop social

support wherein an individual can expect to receive help when necessary

(Buljubasic, 2018). Likewise, when the relationship with peers is

acceptable recognition and achievement can be stimulated. Relationship

with peers is a kind of foundation. A high quality foundation means that

an employee is likely will be satisfied with his job.

Given the above presented result, the p-value of 0.0160 on working

condition of job satisfaction found to have a significant relationship to

the level of customer’s satisfaction. This means that working conditions

influence employees’ performances. It is therefore necessary to take

measures to eliminate uncomfortable working conditions or, if not

possible, to take appropriate safety measures. On the other hand,

working conditions can be influenced external factors that include

climate lighting in the workplace, noise and interference and other

factors as related to the organization of production such as duration of

the work shift, work schedule, working time and work pace.
 51

Safety at work is carried out to ensure working conditions without

danger to life or health, or, to avoid accidents, injuries, occupational

diseases and, or at least mitigate their consequences. In the context of

safety at work it should be talking about equipment that employees use

in their daily work. Equipment (machinery, equipment, plant, tools,

supplies, laboratory equipment, etc.) that employees use in their work

has to be functional and correctly to avoid injuries at work or reduced

performances. It is important that workers are trained how to work with

the equipment because inadequate equipment handling can result in

accidents or deviations in performance no matter how much equipment

was proper. Training of employees should be also oriented to the proper

use of protective equipment and personal protection (Bakotic, 2013).

V. Significant effect of the level of job satisfaction to the level of

customer satisfaction

Table 6. Significant effect of the level of job satisfaction to the

level of customer satisfaction

Job Satisfaction p value Description

Achievements 0.14700 Not Significant
Work Itself 0.05000 Significant
Growth 0.11200 Not Significant
Work Security 0.00500 Significant
Relationship with Peers 0.01100 Significant
Working Condition 0.05900 Not Significant
Job Satisfaction 0.29600 Not Significant
Love of Money 0.38700 Not Significant
Pay Satisfaction 0.50500 Not Significant
Overall Job Satisfaction Mean 0.33900 Not Significant
 52

Table 6 shows that there is a significant effect of the level of job

satisfaction on the aspect of relationship with peers with p-value of

0.01100 to the level of customer satisfaction. This means that employees

with strong bonds of camaraderie are more likely to remain loyal to their

team, and stay longer as a result. Thus friends at work offer a priceless

support system when things get tough. According to Dickson (2018)

employees with friends at work who regularly celebrate their

contributions and accomplishments are more likely to love their job, and

even more likely to love the company they work for. Further, when

employer provides good relationship then employees are satisfied and

ultimately they provide those to customers and they also feel satisfied.

On the other hand, work security aspect of job satisfaction found

to have significant effect to the level of customer’s satisfaction with p-

value of 0.0050 indicating that job satisfaction levels decrease when an

employee feels threatened by a lack of job security. A worker is filled with

feelings of discontent and uncertainty when his future at the company is

uncertain, which leads to resentment. However, an employee with job

security is able to envision his future at the organization, making him

feel valued and satisfied with his current position. Conversely, a worker

with a solid sense of job security plans to work for the company for the

foreseeable future, so she maintains relationships with colleagues and

completes her work to stay employed (woods, 2013).

 53

Moreover, the p-value of 0.0500 on work itself as one aspect of job

satisfaction statistically has a significant effect to customer’s satisfaction.

This means that satisfied employees are more productive, innovative,

committed and loyal to work itself, which in turn leads to customer

satisfaction, which means that employees who likes the job plays a

“strong, central role” in predicting profitability and organizational

effectiveness. Employee satisfaction is significantly related to service

quality and to customer satisfaction. Employee work satisfaction reflect

the company image as a result of that organizations must have to focus

in areas that reinforce and enhance satisfaction of employees which

leads higher customer retention and customer satisfaction (Aziz, 2015).

 54

Chapter 5

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter discusses the summary of findings, conclusion, and

recommendations regarding the level of employees’ job satisfaction and

its effect on customers’ satisfaction among selected restaurants in Iligan

City.

Summary

This study was intended to assess the level of employees’ job

satisfaction and its effect on customers’ satisfaction among selected

restaurants in Iligan City. It also sought to determine the demographic

profile of the respondents in terms of age, sex, civil status and average

monthly income. This also aimed to determine the level of job

satisfactions in various restaurant’s in terms of achievements, work

 55

itself, recognition, growth, work security, relationship peers, work

condition, job satisfaction, love of money, and pay satisfaction.

This study further sought to determine whether there is a

significant difference on the level of job satisfaction when grouped

according to their profile. Likewise, the study pursued to determine

whether there is a significant relationship between the level of job

satisfaction and the level of customer satisfaction. The study utilized the

descriptive-correlational design with 100 respondents who often dines in

different restaurants in Iligan city for the school year 2018-2019.

In gathering data the researchers used the standardized

questionnaires to achieve the desire of the study. The result were

analyzed through frequency and percentage distribution and percentage

to get the profile of the respondents. To obtain the difference and

relationship between variables, analysis of variance (ANOVA) and

Pearson moment of correlation were used.

The following are the findings of the study.

1. The demographic profile of the respondents revealed that 51

percent are male, married with age ranges from 20 – 29 years old

who earns an average monthly income of P10,000 and below.

2. The overall level of job satisfaction is 3.64 rated as very satisfied.
3. The overall level of customers’ satisfaction is 3.72 rated as very

satisfied.
 56

4. There is significant relationship between the level of job

satisfaction and the level customers’ satisfaction on the aspect of

achievement with p-value of 0.0000, work itself (0.0000),

recognition (0.0000), growth (0.0000), relationship with peers,

(0.0010), and working conditions (0.0160).

Conclusion

Different performance levels exist in how the restaurant employees

express their delivery of services in a form of service quality to achieve

customer satisfaction. Customer segments can have different preferences

depending on their needs and purchase behavior. the findings indicate

that restaurant employees belonging to different customer segments (e.g.,

satisfied vs. dissatisfied) expressed differences toward service quality and

customer satisfaction. Thus, the management of restaurant must notice

the needs of different market segments to meet the customers’ individual

expectations and satisfaction. This study proposes job satisfaction levels

for analyzing customer satisfaction on the aspect of achievement, work

itself, recognition, relationship with peers and their working conditions,

thereby helping restaurant managers improve customer satisfaction

effectively. Generally, customer satisfaction is addressed as a strategic

business development tool. Satisfied customers are most likely to share

their experiences with other people to the other. Equally well,

dissatisfied customers are more likely to tell others of their dissatisfied

experience. Research has demonstrated that even a difference between a

 57

totally satisfied customer and dissatisfied customer could affect

customer service.

Recommendations

In the light of all the findings and conclusions, the researchers

recommend the following:

Employers

They should create a monitoring body or appoint an officer to

constantly evaluate the service quality of restaurants and employee

satisfaction.

Employees

That they cooperate with their employees in maintaining service

quality of restaurants and that they coordinate with employers as to their

needs.

Customers

That they habitually give feedback to restaurant employees and

managers for improvement of quality and services.

Future Researchers

That further studies on levels of satisfaction of employees and

customer satisfaction be done to improve the restaurants in the locality

 58

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LEVEL OF EMPLOYEES’ JOB SATISFACTION AND ITS EFFECT ON

CUSTOMERS’ SATISFACTION AMONG SELECTED RESTAURANTS IN

ILIGAN CITY

College of Hotel and Restaurant Management

Saint Michael’s College

Iligan City

Survey Questionnaire

GENERAL INSTRUCTION: This is a survey instrument to collect data on the

Customer’s Level of Satisfaction and its effect to staff service on various

restaurants in Iligan city.

Please provide the appropriate answers needed for each item. Place a check on

the space provided.

 64

Part 1. Demographic Profile

1. Age: ____ years old

2. Civil Status:

____ married ____ single _____ widow ____ separated

3. Gender: ____Male

____Female

4. Estimated Monthly Income

____5,000 – 10, 000 ____40,001 – 50,000

____10,001 – 20, 000 ____51,000 – and above

____21,000 – 30, 000

____31,000 – 40,000

Part II. Performance in terms of:

Directions: Below are items indicating the Customer’s Level of

Satisfaction and its effect to Staff Service in the various restaurant

in Iligan city in terms of: performance Services and job satisfaction.

Kindly answer it honestly as you can on what is true for you. There are five

choices below, choose only the best for you.

Legend:

5 – Extremely Satisfied 1 – Not Satisfied

 65

4 – Well Satisfied 2 – Less Satisfied

3 – Satisfied
 66

SERQUAL Dimension statement 5 4 3 2 1

Tangible 1. Visually attractive parking areas and

building exteriors.

2. Visually attractive dining area

3. Clean, neat and appropriately

dressed staff

4. Restaurant’s decor typical to

its image and price range

5. Easily readable menu

Reliability 6. Service at the promised time

7. Quick correction of wrong service

8. Performing services right the first

time

9. Accurate bill

10. Error-free served order (food)

 67

Responsiveness 11. Maintaining speed and quality of

service during busy times

12. Provision of prompt service

13. Extra effort for handling special

requests

14.Employees are willing to help

customers

15. Employees tell customers when

services will be performed

Assurance
16.Employees can answer questions

completely

17.Comfortable and confident feeling

18.Staff provide information about

menu items, their ingredients, and

method of preparation

19.Well-trained, competent and

experienced staff

20.Restaurant supports the employees

 68

21.Employees provide individual

attention
Empathy

22.Operating hours are convenient to

all customers

23.Anticipation of customers’

individual needs and wants

24.Sympathetic and reassuring

employees

25.Restaurant has customer’s interest

at heart
 69

Part III. Job Satisfaction in terms of:

 70

JOB SATISFACTION Question 5 4 3 2 1

Factor EX SAT WS S LS NS
Motivator
ACHIEVEMENTS  The staffs are satisfied to work to

their restaurants because it

recognizes their achievements.

 The restaurants encourage the staffs

to work to the best of their abilities.

 The staffs get a sense of personal

accomplishment.
 The restaurant is able to maximize

employee potential.
 Staffs are inspired on working hard

to have a good performance.

WORK ITSELF

 How empowered are the staffs while

doing their job.

 Staffs receive appropriate training to

enhance their effectiveness.

 The staffs are flexible and learn

rapidly about hanging markets.

 The supervisor encourages the staff

to take initiative to their job.

 The staffs had enough to do their

work.
 71

RECOGNITION  The staff will do satisfy when he/she

achieve or complete a task.

 The Restaurants value their work.
 The staff receives recognition when

they perform above expectations.

 The staff is rewarded for exceeding

their goals.
 The manager praises for their job

well done.
GROWTH  Will staff satisfy to improve their

performance, skills and performance

during their duties

 Staffs are more efficient in their job.
 Staff are more responsibilities since

when their started.

 Staffs are giving a equal opportunity

for advancement of the restaurants.

 The staff continuously learning and

trying to improve one another.

WORK SECURITY  Workplace is safe and comfortable to

work with.
 Staff is feeling safe at their work

area.
 They know what to do in case of

emergency
 Work stops immediately if safety

issue arises.
 Staff is able to maintain a high level

of productivity while maintaining

 72

safety.

Relationship  Staffs can easily go to the supervisor

peers if there is a problem.

 Managers show fairness and respect

in their in interactions with

employees.
 Conflicts are resolved in a positive

and constructive manner.

 Workplace and issues are resolved

fairly and quickly.

 Managers are mutual trust and

respect.
WORK CONDITION  How proudly satisfied to work at the

restaurant for their pleasant working

conditions.

 The Working Condition is

satisfactory.

 The staff is feeling positive in most of

the time of their work.

 Satisfactory in current fixed working

hours.
 Satisfactory with physical condition.

JOB SATISFACTION Staffs are feeling good at their work.

 The Staff receive personal

satisfaction from doing a good job.

 The staffs are enjoying in coming to
 73

work.
 Staffs are made to feel that they are

important of their restaurants.

 The staffs are feeling satisfied at

their restaurants.
LOVE OF MONEY  Salary is attractive for their job.
 Staffs are satisfied with the level of

salary they receive.

 There salary matches their job

performances.
 There salary is fair for their position.
 Staffs are all paid fairly.

PAY SATISFACTION  How satisfied are the staffs with

their salary.
 Well compensated for their
Work in restaurant.

 The staffs are fairly compensated.

 Staff are well satisfied with

Current salary.
 Staffs are satisfied with the

company’s pay structure.

 74

CURRICULUM VITAE

Personal Profile

Full Name: Ma. Jeanifer S. Trocio

Home Address: San Miguel, Iligan City

Course: BSHRM

Sex: Female

Age: 22 years old

Birthdate: April 28, 1995

Religion: Roman Catholic

Dialect: English, Filipino, Cebuano.

Email-add: jeantrocio2895@gmail.com

Educational Background

Elementary: Mindanao Cooperative Institute of Technology

(2001-2007)

Secondaty: La Salle Academy Iligan

(2007-2011)

Tertiary: St. Michael’s College

(2014-present)
 75

Family Background Occupation

Father’s Name: Ildefonso R. Trocio Jr. Seaman

Mother’s Name: Eufemia S. Trocio Housewife

_______________________________________________________________________

Special Skills:

Computer Literate, Cooking

Personal Profile

Full Name: Kim Yu Requiso

Home Address: Tibanga Iligan City

Course: BSHRM

Sex: Male

Age: 26 years old

Birthdate: October 24 1991

Religion: Roman Catholic

Dialect: English, Filipino, Cebuano.

Email-add: Requiso92@gmail.com

Educational Background

Elementary: Datu Guibar Memorial Pilot School

 76

(1999-2005)

Secondaty: Lanao Educational Institute

(2008-2009)

Tertiary: St. Michael’s College

(2009-present)

Family Background Occupation

Father’s Name: Rolando B. Requiso Government

Employee

Mother’s Name: Nenita Yu Requiso Government

Employee

________________________________________________________________________

Special Skills:

Computer Literate, Cooking

77