PRODUCTIVITY OF HUMAN CAPITAL

ON SELECTED WOODCARVING AND

FURNITURE MAKING BUSINESS IN
DISTRICT IV OF LAGUNA
CYRIL M. CALALO
BSACCO IV-A
 BACKGROUND OF THE STUDY
Human capital is considered to be one of the most important
elements of competitive advantage in most organizations. It
includes all the competencies of the people within an
organization. These competencies are various skills,
educations and experiences, potentials and capacities. It is
believed that if a company know how its human capital
contributes to their success, it then can be measured and
managed effectively.
Most human capital investments by entities nowadays
are given to fully support the worker’s productivity all
throughout their job. It has been once said by an
owner of a woodcarving handicraft, that most
investments are given even without on the contract or
knowledge of the woodcarvers. Hence, another form
of investments that is hard to measure. Compensation
benefits given to the woodcarvers and furniture
makers varies on the completed job and tasks, with
the inclusion of the profit generated.
Worker’s productivity then can be measured with how
their job performance is doing against the investments
given by the owners. job performance of woodcarvers
and furniture makers includes their working hours,
quality of work and finished products to be sold or
deliver with their clients and walk-in customers.
The productivity of human capital with their job
performance due to investment dealt with the
business industries and their relationships are the
main purpose of this study. Education, trainings,
seminars and other benefits invested by a business
endeavor on their workers could be an important
factor for an entity’s growing business and human
capital’s productivity.
 STATEMENT OF THE PROBLEM
The main purpose of this study is to determine the Productivity of Human
Capital in selected Woodcarving and Furniture making business.
Specifically, this study aims to answer the following questions:
1. Demographic profile of the business based on:
• No. of years in operation
• No. of employees
• Skilled
• Non-skilled

• Estimated number of clients

2. Human capital investment or trainings undergone of
employees before/after employed.
3. What are the productivity of human capital in terms
job performance in selected businesses?
4. Is there a significant relationship between the human
capital investments of the business and the
productivity of human capital in selected wood-
carving and furniture-making businesses?
 PRESENTATION, ANALYSIS AND
INTERPRETATION OF DATA
Table.1 Demographic Profile of Respondents
Years of operation Frequency Percentage

2-7 4 15%

8-13 11 42%

14-19 7 27%

20-25 2 8%

26-31 2 8%

Total 26 100%

Skilled Frequency Percentage

1-6 21 81%

7-12 2 8%

13-18 0 0%

19-24 1 4%

25-30 1 4%

31-36 1 4%

Total 26 100%
 Non-skilled Frequency Percentage

0-3 18 69%

4-7 5 19%

8-15 2 8%

16-19 0 0%

20-23 1 4%

Total 26 100%

Estimated number of clients Frequency Percentage

4-11 12 46%

12-19 5 19%

20-27 4 15%

28-35 4 15%

36-43 0 0%

44-51 1 4%

Total 26 100%
Demographic Profile of the Respondents

Table 1 shows the profile of the respondents in terms of length of operation, number of

employees, skilled and non-skilled, and estimated number of clients. In terms of length of

operation, majority of woodcarving and furniture making businesses in District IV of Laguna are

operating 8 to 13 years In terms of number of employees having a total frequency of 11, majority

of these businesses have 1 to 6 skilled workers with a frequency of 21, and 0 to 3 non-skilled

workers having a frequency of 18. Woodcarving and furniture making businesses have also 4 to

11 estimated number of clients which is 46% of all the respondent’s data with a frequency of 12.

Generally, the woodcarving and furniture making businesses in District IV of Laguna are

operating for about 8 to 13 years with 3 skilled workers and 4 to 11 estimated clients.
 Verbal
No. Human Capital Investments Average Interpretation Description
Slightly
1 The business provided series of trainings 2.77 Sometimes
Provided
for their workers.

Moderately
2 The business provided compensation 3.85 Often
Provided
benefits for their workers. .
Never
3 The business provided education or 1.50 Never
Provided
scholarship benefits to their workers.
The business considered the expertise
and experience of the workers before Extremely
4 4.50 Always
giving them a task/accepting them as part Provided
of their labor force.
The business conducted series of
5 2.42 Provided
seminars for their workers. Seldom
Weighted Mean 3.01 Sometimes
Table 3 shows the productivity of human capital in terms of job performance of

selected woodcarving and furniture making business.

The woodcarvers and furniture makers are always able to complete the job

within specific date assigned with them and has a weighted mean of 4.23 which

describe that a worker job performance is highly productive.

 On the other hand, the workers are often efficient in using their raw materials which describe that their

performance are moderately productive at work, with a weighted mean of 3.85. The workers also often recycle

scrap materials; they also often produced goods higher than anticipated by the business, with a weighted mean

of 3.62. The workers often present at work and produced goods within or beyond their quota, which have

weighted mean of 3.54 and describe as moderately productive on their job performance. As a skilled worker, the

woodcarvers and furniture makers often generated less defects with their job performance is moderately

productive, which has weighted mean of 3.46. The employees also often went early or on-time and left their work

at the exact or after the assigned hours, this describes that workers are moderately productive on maximizing

their working hours, which has a weighted mean of 3.42.

The workers sometimes generated less idle time when at work and also sometimes performs his duties with

minimum supervision, meaning that the employees of the woodcarving and furniture making business are slightly
 Table 6. Productivity of human capital

Verbal
No. Job Performance Mean Interpretation Description
Able to complete the job within specified date.
Extremely
1 4.23 Always
Productive

Employees went early/on-time

Moderately
2 3.42 Often
Productive

Leave work at the exact/after the assigned work

hours Moderately
3 3.42 Often
Productive

Always present at work.

Moderately
4 3.54 Often
Productive

Slightly
5 Less idle time 3.38 Sometimes
Productive
 Efficient use of raw materials Moderately
6 3.85 Often
Productive

Recycles scrap materials. Moderately

7 3.62 Often
Productive

Goods produced generated less defects.

Moderately
8 3.46 Often
Productive

Worker performs his duties with minimum Slightly

9 supervision 3.38 Sometimes
Productive
Goods produced is within or beyond the quota
of workers. Moderately
10 3.54 Often
Productive

Goods produced is higher than anticipated.

Moderately
11 3.62 Often
Productive

Weighted Mean 3.59 Often

Table 3 shows the productivity of human capital in terms of job performance of

selected woodcarving and furniture making business.

The woodcarvers and furniture makers are always able to complete the job

within specific date assigned with them and has a weighted mean of 4.23

which describe that a worker job performance is highly productive.

 On the other hand, the workers are often efficient in using their raw materials which describe that their

performance are moderately productive at work, with a weighted mean of 3.85. The workers also often recycle

scrap materials; they also often produced goods higher than anticipated by the business, with a weighted mean of

3.62. The workers often present at work and produced goods within or beyond their quota, which have weighted

mean of 3.54 and describe as moderately productive on their job performance. As a skilled worker, the woodcarvers

and furniture makers often generated less defects with their job performance is moderately productive, which has

weighted mean of 3.46. The employees also often went early or on-time and left their work at the exact or after the

assigned hours, this describes that workers are moderately productive on maximizing their working hours, which

has a weighted mean of 3.42.

The workers sometimes generated less idle time when at work and also sometimes performs his duties with

minimum supervision, meaning that the employees of the woodcarving and furniture making business are slightly

productive even without their supervisor or owner, which has a weighted mean of 3.38.
Table 4. Relationship of the Human Capital Investments to Employees’ Job Performance

Variable N Stat. Tool r-Value p-Value Decision Interpretation

Pearson Correlation
Human Capital Investments
0.621 0.001 Reject Ho Significant
26
Relationship of the Human Capital Investments to Employees’ Job Performance

Table 4 shows the relationship between human capital investments provided by the woodcarving

and furniture making business to productivity of human capital in terms of employees’ job performance.

The Pearson correlation/r-value and p-value of human capital investments provided by the business are

0.621 and 0.001, respectively. This shows that the human capital investments provided by the

woodcarving and furniture making industry is significant to productivity of human capital in terms of job.

This study also shows that the human capital investments has direct relationship to productivity of

human capital in terms of job performance.

 SUMMARY, CONCLUSION AND RECOMMENDATION

Summary of Findings

As to the profile of the respondents in terms of length of operation, number of employees,

skilled and non-skilled, and estimated number of clients. In terms of length of operation, majority

of woodcarving and furniture making businesses in District IV of Laguna are operating 8 to 13

years. In terms of number of employees, majority of these businesses have 1 to 6 skilled workers

with a, and 0 to 3 non-skilled workers. Woodcarving and furniture making businesses have also 4

to 11 estimated number of clients which is 46% of all the respondent’s data.

Generally, the woodcarving and furniture making businesses in District IV of Laguna are

operating for about 8 to 13 years with 3 skilled workers and 4 to 11 estimated clients.
 Under the human capital investments provided by the woodcarving and furniture making

industries on their production workers in District IV of Laguna. It was gleaned that majority of

respondents consider first the expertise and experience of their workers before giving them task

ad providing materials to start carving or manufacturing products. The business also provided

series of seminars and trainings to further improve the workforce they have. In addition most of

the employees receive compensation benefits which comprises health care benefits, bonuses

and incentives.

It was shown under the productivity of human capital in terms of job performance of selected

woodcarving and furniture making business that the woodcarvers and furniture makers are

extremely productive when it comes to their performance as able to complete the job within

specific date assigned with them.

 On the other hand, the workers are found to be moderately productive with their performance

as to efficiency in using their raw materials, recycling their scrap materials, producing goods higher

than anticipated by the business, presence at work, producing goods within or beyond their quota,

generating less defects, coming at work early or on-time and leaving their work at the exact or

after the assigned hours,

The workers are also gleaned to be slightly productive since they were found to generate less

idle time when at work. The workers also sometimes performs duties with minimum supervision,

meaning that the employees of the woodcarving and furniture making business are productive

even without their supervisor or owner.

 There is a significant relationship between human capital

investments provided by the woodcarving and furniture making

business to productivity of human capital in terms of employees’ job

performance. The Pearson correlation/r-value and p-value of human

capital investments provided by the business are 0.621 and 0.001,

respectively. This shows that the human capital investments provided

by the woodcarving and furniture making industry is significant to

productivity of human capital in terms of job

Conclusion

The researcher made the following conclusions based on the results of the data analysis. First,

the selected woodcarving and furniture making businesses are providing human capital investments

for their workers. Overall the businesses are slightly providing investments in order to improve their

labor force and generate higher income and returns.

Next, the employees’ job performance is moderately productive. At the same time, the

researcher concluded that, the productivity of human capital based on job performance indicates and

can be measured through their working hours, quality of work and finished products. On the other

hand, the human capital investments received by the employees have significant effect on their job

performance. Meaning, if the business provided more human capital investments their workers’

performance level increases or vice versa.

Recommendation

After analyzing carefully the data presented, the following statements were

hereby recommended: Woodcarving and furniture making business owners may

consider giving additional human capital investments to their workers by providing

them educational benefits and seminars because the higher the investments the

more they will be productive. They may also consider giving educational

assistance to the dependents of their employees if possible. The management

may also evaluate the performance of individual employee for incentive purposes.