Chapter 1

INTRODUCTION

Background of the Study

Auditing as a tool for effective governance has been recognized and practiced since

the Spanish colonial era. Presidential Decree 1445 or the Government Auditing Code was

promulgated in 1978. A Standard Government Chart of Accounts was likewise issued which

greatly facilitated financial audit for computerization purposes. The Commission also

implemented its comprehensive audit program focusing on the 3Es: economy, efficiency and

effectiveness. Installation of this program represented a break from tradition that laid undue

emphasis on compliance and voucher audit. And on top of all these, the Commission

embarked on a massive reorganization and professionalization of its personnel.

Years later, the world witnessed the 1986 EDSA Revolution. It was truly a historical

event that highlighted the need for reforms in government as a whole. It provided everyone a

chance for introspection and created an avenue towards change. As fate would have it, the

COA again found itself working under a new government, under a new Constitution and with

an even broader scope of authority.

The 1987 Constitution maintained the independence of the Commission on Audit as

the supreme auditing arm of the Philippine government. Moreover, the Constitution reiterated

COA’s role as the sole official external auditor of government agencies as well as

government-owned- and-controlled corporations (GOCCs).

Change, it seems, is the inescapable destiny of the Commission. But as history proves,

whatever the nature of change brought about by national political events, the Commission

manages to make it for the better.

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The principal duties of the Commission are the following:

1. Examine, audit and settle all accounts pertaining to the revenue and receipts of, and

expenditures or uses of funds and property owned or held in trust by, or pertaining to, the

government.

2. Promulgate accounting and auditing rules and regulations including those for the

prevention and disallowance of irregular, unnecessary, excessive, extravagant or

unconscionable expenditures, or uses of government funds and properties.

3. Submit annual reports to the President and the Congress on the financial condition and

operation of the government.

4. Recommend measures to improve the efficiency and effectiveness of government

operations.

5. Keep the general accounts of government and preserve the vouchers and supporting

papers pertaining thereto.

6. Decide any case brought before it within 60 days.

7. Performs such other duties and functions as may be provided by law.

In today’s competitive environment, employees are facing a great challenge in their

tenure of service. Every employee wanted recognition in his or her performance. Every

employee wanted to be recognized and be given importance in a workplace.

Employee separation is when an employee leaves the organization. The separation

occurs when the employment relationship is ended. The employer can initiate separation

decisions as discharges and layoffs, but the employees as quits or retirements can also initiate

separation. Some may follow a linear path in their careers while others jump back and forth

through different stages.

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 Studies showed that job satisfaction is one of the most important factors for an

employee to leave the organization. Job satisfaction is a major concern of an employee, thus,

organizations must provide growth opportunities and give importance to their employees.

Some people view job satisfaction as gaining recognition for quality work in a

company. In some, job satisfaction means moving from a junior-level position to a senior-

level position. Promotion can may an employee satisfied as it is a tangible evidence of

performance appreciation. Moving from a contractual position to a regular job function is

another example of promotion.

Along with increased advancement, people typically earn more income and have

greater authority in new positions. The greater an employee's role in an organization, the

more influence he has in the direction of a department or the organization as a whole.

Statement of the Problem

This study broadens the understanding on the causes of employee separation in the

Commission on Audit Regional Office VI.

Specifically, this study seeks to answer the following question(s):

1. What are the dominant factors affecting the employment separation of auditors in

Western Visayas?

2. Is there any relationship on the causes of employee separation in the Commission

on Audit Regional Office VI when grouped in terms of age, sex, length of service and

work assignments?

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 Theoretical Framework

The notion of employee motivation have become a popular driving force behind most

successful organizations An employee motivation is potentially one of the most powerful

sources of individual satisfaction of needs, because social and economic status depends more

on an individual’s occupation than anything else. With the ever-changing environment in the

workplace, many people find that the role that they thought they had for life becomes boring

and needs excitement. This is the reason why employees leave.

Moreover, some studies explain that developing an employee motivation reduces

individuals’ obsolescence, and increases worth in the workplace. In addition, one is able to

learn in a wider variety of ways and within a wider range of contexts. Hence, a workplace of

motivation improves work performance and become more versatile and competitive in the

working environment. New challenges are an essential part of everyday life.

Researchers emphasize that one of the important aspects of staying in a workplace is

employee motivation that it opens up professional opportunities, and is frequently used by

those who seek to climb the organizational ladder. Doing so should prove to an employer that

they are willing to go an extra mile to improve the employee motivation in a workplace to

reduce employment turnover.

Moreover, researchers have different opinions, which are all interrelated on how to

develop employee motivations in the workplace.

In this investigation, the researcher wanted to find out which factors really contribute

in the employee separation of government auditors. The investigator chose factors related to

job satisfaction, length of service, position, work assignment as well as age.

This study determines the causes of employee separation in the Commission on Audit

Regional Office VI. The independent variables, which are the Job Satisfaction, Length of

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Service, Position, Work Assignment, and Age, affect the dependent variables which are the

Retirement, Resignation, and Dismissal.

Paradigm of the Variables of the Study

Dependent Variables Independent Variables

Retirement Position
Resignation Age
Dismissal/Discharge Length of Service
Work Assignment
Job Satisfaction

This study is connected with the theories of Motivation. A motivated and qualified

workforce is crucial to increase productivity and the quality of the organizational services in

order to achieve organizational objectives. The challenge and dilemma for many managers is

how to create this type of motivation (Dieleman and Toonen, 2006:1). Motivation is

significant because even people with the required knowledge, skills, and abilities will

perform poorly if they are not motivated to devote their time and effort to work (Harris in

Milapo, 2001: 29).

Workers have needs which a workplace must fulfill in order to avoid separation from

employment. When workers lack motivation they tend to resort to resignation, early

retirement, and dismissal from work with the sanctions from absenteeism, negligence of duty,

late-coming, failure to meet deadlines, display of open frustration and all these factors work

negative to the performance and credibility of an organization. Organizations need to place

all efforts to ensure that incentives such as intrinsic motivators, extrinsic motivators and

performance management approaches are used in order to attract, increase workers efforts,

satisfaction, commitment and retain in an employment.

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 Significance of the Study

The results of this study may be beneficial to the following:

The government auditors in Western Visayas can gain valuable insights from the

results of this investigation. This study could help them in their decision whether to stay,

transfer or quit from their present work. With the factors identified, they would be able to

improve in areas mentioned that affect their tenure. Likewise, they could assess their current

tenure status in order to advance to the next level.

The regional offices may also benefit from the study. The results of the study would

enable them to know and understand their subordinates; as a result, they could do

employment planning effectively.

The central office may also benefit from the result of this study. This investigation

would provide the office the data on the factors that would motivate their subordinates and

that would foster productivity.

Future researchers would gain valuable insights from the findings of the study.

Results from this investigation would serve as catalyst in conducting studies related to

employee motivation for them to stay in a workplace.

Scope and Limitations

For purposes of clarity and understanding, the following terms will be given their

conceptual and operational meanings:

Commission on Audit

An independent constitutional commission established by the Constitution of the

Philippines. It has the primary function to examine, audit and settle all accounts and

expenditures of the funds and properties of the Philippine government.

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Regional Office VI

The jurisdiction of Commission on Audit in Region VI which is consists of Iloilo City

and Province, Aklan, Antique, Capiz and Guimaras. In this study, the Commission on Audit

Regional Office VI was the place where the investigation was conducted.

Age

It is the length of time that a person has lived or a thing has existed.

Sex

It is the two main categories (male and female) into which humans and many other

living things are divided on the basis of their reproductive functions.

Length of Service

The number of years spent by the employees in the Commission

Work Assignment

The group or cluster which is assigned to employee whether in Local Government

Sector, National Government Sector, Corporate Government Sector, Administrative, Training

and Finance Services, Fraud Services, or Technical Services.

Job Satisfaction

Job satisfaction is the terminology used to describe whether employees are happy and

contented and fulfilling their desires and needs at work. (www.thebalance.com, 2016).

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 Chapter 2

REVIEW OF LITERATURE AND RELATED STUDIES

The focus of the literature on employee separation has been on achieving a better

understanding of the causes and reasons for separation among government employees

particularly in Commission on Audit Regional Office VI. Several studies have already

analyzed data on surveys on employee separation. In each study, employee reasons for

leaving in government service were classified as resignations, retirement, and

dismissal/discharge from service. Dismissals/discharges were defined as terminations of

employment initiated by the employer or higher authorized bodies for such reasons as

incompetence, violations of rules, dishonesty, laziness, absenteeism, insubordination, and

failure to pass the probationary period (Bureau of Labor Statistics, Measurement 1976).

The reasons for employee separation have been a recurring scenario in every

organization. Since these reasons are the most common among the studies conducted by

previous researchers, it follows the same pattern in this study. Further, each organization has

its own culture before and deviating with such practice will create chaos or instability within

the organization. The employees decide to leave because he/she cannot tolerate anymore.

In a 1964 study, top-level managers reported that the most important reason for

discharging an employee under their supervision was "failure to improve after repeated

warnings," the second reason was "unacceptable personality traits," and the third was "other

breaking points" which included, among other reasons, union affiliation (Hill, 1964).

With regards to the dismissal or discharge of an employee in the organization, the

most common in the government particularly in the Commission on Audit is the work

assignment where the risk of corruption is high. The Local Government Sector, for example,

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has the most number of complaints. The politicians have the tendency to abuse their powers

that leads to non compliance of certain provisions of the law.

More recently, job performance has been found to account for a greater component of

involuntary turnover than job attitudes (Wanous and others, 1964). In a 1981 study,

employees with favorable performance records, reflected by job productivity, prior

promotions to positions requiring greater responsibility, and positive overall performance

ratings, were less often discharged for cause (Phelps, 1964).

Being straightforward with your work and the master you serve which is the people,

dismissal may be a rare case given in an ideal bureaucratic environment. Honest and

objective employee has been a problem in the bureaucracy of corrupt government employees.

Those perpetrators of fraud or other malpractices in the bureaucratic system will find a way

to destroy or make you feel unwelcomed that may eventually lead to employment separation.

In a complex and dynamic environment, leader of the organization used to create the

environment in which employee feel trusted and are empowered to take decisions in the

organization which leads to enhance motivation level of employee and ultimately

organizational performance are enhanced. Smith and Rupp (2003) stated that performance is

a role of individual motivation; organizational strategy, and structure and resistance to

change, is an empirical role relating motivation in the organization. Likewise, Luthans and

Stajkovic (1999) concluded that advancement of human resources through rewards, monetary

incentives, and organizational behavior modification has generated a large volume of debate

in the human resource. Each of the employees of the government has its own satisfactions

needs. Satisfaction is tailored-fit to every person in the organization. One can be satisfied by

the increase of salary. Others may have already high salaries but never been satisfied with

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his/her work. We cannot draw or define what truly employee satisfaction is but has different

meaning in each and every employee in the organization.

According to Orpen (1997) better the relationship between mentors and mentees in

the formal mentoring program, the more mentees are motivated to work hard and committed

to their organization. Good personal relationship with your co-workers will make an

employee stay in the organization. Likewise, Malina and Selto (2001) conducted a case study

in one corporate setting by using balance score card (BSC) method and found out that

organizational outcomes would be greater if employees are provided with positive

motivation. The establishment of operations-based targets will help the provision of strategic

feedback by allowing the evaluation of actual performance against the operations-based

targets. Giving incentives if the target was reached by the organization makes the employees

more motivated to work that will surpass the expected targets. Goal-directed behavior and

strategic feedback are expected to enhance organizational performance (Chenhall 2005).

With the meetings held giving recognition to the people behind the success of the

organization can lead to positive motivation of the employees.

Kunz and Pfaff (2002) stated no substantive reason to fear an undermining effect of

extrinsic rewards on intrinsic motivation. Decoene and Bruggeman (2006) in their study

developed and illustrated a model of the relationship between strategic alignment, motivation

and organizational performance in a BSC context and find that effective strategic alignment

empowers and motivates working executives. Leaders motivate people to follow a

participative design of work in which they are responsible and get it together, which make

them responsible for their performance. Aguinis et al. (2013) stated that monetary rewards

can be a very powerful determinant of employee motivation and achievement which, in turn,

can advance to important returns in terms of firm-level performance.

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 Garg and Rastogi (2006) identified the key issues of job design research and practice

to motivate employees’ performance and concluded that a dynamic managerial learning

framework is required to enhance employees’ performance to meet global challenges. Vuori

and Okkonen (2012) stated that motivation helps to share knowledge through an intra-

organizational social media platform which can help the organization to reach its goals and

objectives. Den and Verburg (2004) found the impact of high performing work systems, also

called human resource practices, on perceptual measures of firm performance. Ashmos and

Duchon (2000) recognizes that employees have both a mind and a spirit and seek to find

meaning and purpose in their work, and an aspiration to be part of a community, hence

making their jobs worthwhile and motivating them to do at a high level with a view to

personal and social development.

The role of facilitating quality subordinate-superior communication at various levels

effectively employing a wide range of communication channels has been praised by Shields

(2007) in terms of its positive contribution in boosting employee morale. Shields (2007)

stresses two specific advantages of such a practice that relate to offering employees a chance

to raise their concerns and put across their points regarding various aspects of their jobs, as

well as, supplying them with the feeling of engagement and appreciation.

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 Chapter 3

RESEARCH DESIGN AND METHODOLOGY

This chapter examines research design, the respondents, instruments employed, data

collection procedure and data analysis procedures.

Research Design

The research design for this study employed a descriptive survey method which

systematically collects, organizes, analyzes, and interprets data on a given population. This

investigation surveyed the factors of employment separation of government auditors in

Western Visayas. The variables considered were job satisfaction, length of service, position,

work assignment as well as age as the independent variables and the causes of separation as

the dependent variable.

The Respondents

The subjects of the study were the auditors in Western Visayas. The simple random

sampling method through convenience was employed in the selection of the final subjects of

the study.

The auditors were classified according to position, age, length of service, and work

assignment. The levels of personal variables were determined at a random as follows;

There were five (5) positions: State Auditing Examiner II (SAE II), State Auditor I

(SA I), State Auditor II (SA II), State Auditor III (SA III), State Auditor IV (SA IV); As to

age, the respondents were grouped as 1 (21 to 30 years old), 2 (31 to 40 years old), 3 (41 to

50 years old), and 4 (51 to 60 years old); work assignments were grouped Local Government

Sector, National Government Sector, Corporate Government Sector, Administrative, Training

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and Finance Services, and Fraud/Technical Services; and length of service were grouped as 1

(less than 5 years), 2 (5 to 10 years), 3 (11 to 15 years), 4 (16 to 20 years), and 5 (more than

20 years).

There are approximately 270 personnel in Commission on Audit Regional Office VI

as of March 31, 2017. Of this number, at 15% or at 54 personnel will be the sample size to

represent the population of 360.

Materials and Instrumentation Procedure

A researcher-made questionnaire validated by the research professor was used in

gathering the data needed.

For computation purposes, each response was given an equivalent point as follows:

Response Point

Strongly Agree 5

Agree 4

Neutral 3

Disagree 2

Strongly Disagree 1

To interpret the results, the mean scores were ranked from the highest to the lowest.

Research Procedure

Permission to conduct the research was asked from the Audit Team Leader, then from

the Cluster Supervisor. The simple random sampling method through convenience was

employed in the selection of the subjects used as samples of the study. The researcher

distributed the produced questionnaires to the subjects either personally or via e-mail.

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 Upon retrieval of the accomplished questionnaires, the data were tallied, computed,

analyzed, and interpreted.

References:

www.coa.gov.ph

www.thebalance.com, 2016

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