FROM BROAD PROBLEM TO PROBLEM STATEMENT BROAD PROBLEM

FROM BROAD PROBLEM TO PROBLEM STATEMENT BROAD PROBLEM RESEARCH OBJECTIVE RESEARCH QUESTIONS “Job stress” in employees is a constantly increasing matter with significant costs to employees, organizations and the society. To identify the role of personality in employees’ experience of work stress. 1) Are people with certain personality characteristics more tolerant of stressful work events? 2) What are the most important personality traits that influence employees’ experience of job stress? 3) What can be done to prevent these personality traits from increasing employees’ stress? Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 1

Question: Read the scenario and answer the questions. While Chrysler’s minivans, pickups, and sports utilities take a big share of the truck market, its cars trail behind those of GM, Ford, Honda, and Toyota. Quality problems include, among other things, water leaks and defective parts. • After reading it, (a) identify the broad problem area, (b) define the problem, and (c) explain how you would proceed further. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 2

Chapter 5 Theoretical Framework & Hypothesis Development Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 3

Theoretical framework • Foundation of deductive research project! • Deductive research: moving from the general (a theory) to the specific (observations). – Researcher provides tentative answers to her research questions using theory / logic and then collect data to evaluate whether these answers / claims are supported. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Theoretical Framework • A theoretical framework represents your beliefs on how certain phenomena (or variables or concepts) are related to each other (a model) and an explanation on why you believe that these variables are associated with each other (a theory). Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Theoretical framework • Basic steps: – Identify and label the variables correctly – State the relationships among the variables: formulate hypotheses – Explain how or why you expect these relationships Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Variable • Any concept or construct that varies or changes in value • Main types of variables: – – Research Methods for Business Dependent variable Independent variable Moderating variable Mediating variable © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Dependent variable (DV) • Is of primary interest to the researcher. The goal of the research project is to understand, predict or explain the variability of this variable. • Ex: Research in behavioral finance has shown that overconfidence can cause investors to underreact to new information. • Dependent Variable? Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Independent variable (IV) • Influences the DV in either positive or negative way. The variance in the DV is accounted for / explained by the IV. • Ex: A marketing manager believes that selecting physically attractive spokespersons and models to endorse their products increases the persuasiveness of a message. • Independent Variable? Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Example DV = f(IV) Employee performance Job Satisfaction IV DV Affective Organizational Commitment IV Employee Performance = B 1 Job Satisfaction + B 2 Commitment Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Moderators • Moderating variable – Moderator is qualitative (e. g. , gender, race, class) or quantitative (e. g. , level of reward) variable that affects the direction and/or strength of relation between independent and dependent variable. Employee performance Job Satisfaction Job Skill Research Methods for Business

Example Employee performance Job Satisfaction IV Job Skill DV MV Employee Performance 8 7 6 5 4 3 2 Low skill 1 High Skill 0 Low Job satisfaction High job satisfaction Job Satisfaction Research Methods for Business

Examples • A manager finds that off- the- job classroom training has a great impact on the productivity of the employees in her department. However, she also observes that employees over 60 years of age do not seem to derive much benefit and do not improve with such training. • A manager of an insurance company finds that fear appeals in commercials are positively associated with consumers’ behavioral intentions to insure their house. This effect is particularly strong for people with a high inherent level of anxiety. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 13

Mediating variable • Mediating variable – surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Example • Failure to follow accounting principles causes immense confusion, which in turn creates a number of problems for the organization. Those with vast experience in bookkeeping, however, are able to avert the problems by taking timely corrective action. • List and label the variables in this situation. Explain the relationships among the variables. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 15

Example • The manager of Haines Company observes that the morale of employees in her company is low. She thinks that if their working conditions are improved, pay scales raised, and the vacation benefits made attractive, the morale will be boosted. She doubts however, if an increase in pay scales would raise the morale of all employees. Her conjecture is that those who have supplemental incomes will just not be turned on by higher pay, and only those without side incomes will be happy with increased pay, with a resultant boost in morale. • List and label the variables in this situation. Explain the relationships among the variables. What might be the problem statement or problem definition for the situtation? Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 16

Theoretical Framework • Air safety violations put the safety of airplane passengers at risk. Four important factors seem to have influenced air safety violations are poor communication among the cockpit crew members, poor coordination between ground staff and cockpit crew, minimal training given to the cockpit crew and a management philosophy that has encouraged a decentralized structure. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 17

Schematic Diagram for Theoretical Framework Communication Among Cockpit Members Communication Between Ground Control and Cockpit Air Safety Violations Decentralization Training of Cockpit Crew Independent Variables Research Methods for Business Dependent Variable © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 18

Avatars are virtual characters that can be used as representatives of a company that is using the Internet as a distribution channel. For instance, avatars can be used as shopping assistants, website guides or as identification figures. A manager of an online company believes that avatar-mediated communication will have a positive effect on satisfaction with her company and on purchase intentions of consumers, because avatars enhance the value of information provided on the website and increase the pleasure of the shopping experience. She also believes that the positive effect of the perceived information value on satisfaction with the company and purchase intentions is stronger when customers are highly involved. Define the problem statement and develop a theoretical framework for this situation Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 19

Problem Statement What are the benefits of using avatars as company representatives on commercial Web sites? Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 20

Hypothesis • A proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. • If the pilots are given adequate training to handle mid-air crowded situations, air safety violations will be reduced. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran

Statement of Hypotheses • – – – – If – then statements Employees who are more healthy will take sick leave less frequently. If employees are more healthy, then they will take sick leave less frequently. Directional and non-directional hypotheses The greater the stress experienced in the job, the lower the job satisfaction of employees. Women are motivated than men There is a relationship between age and job satisfaction. There is a difference between the work ethic values of American and Asian employees Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 22

The Null Hypothesis, H 0 • Begin with the assumption that the null hypothesis is true until statistical evidence indicates otherwise. – Similar to the notion of innocent until proven guilty • Always contains “=” , “≤” or “ ” sign • May or may not be rejected • Formulated so that it can be rejected in order to support an alternate hypothesis (HA) Research Methods for Business

The Alternative Hypothesis, HA • Is the opposite of the null hypothesis – e. g. , The average number of TV sets in U. S. homes is not equal to 3 ( H 1: μ ≠ 3 ) • • Challenges the status quo Never contains the “=” , “≤” or “ ” sign May or may not be supported Is generally the hypothesis that the researcher is trying to support Research Methods for Business

• Women are motivated than men • There is a difference between work ethic values of American and Asian employees • There is a relationship between age and job satisfaction • The greater the stress experienced in the job, the lower the job satisfaction of employees Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran 25

Exercise Here are eight variables: 1) Understanding Student Needs (by teacher); 2) Developing appropriate teaching strategies (by teacher); 3) In-class examples and exercises; 4) Student entry level skills; 5) Student understanding; 6) Student exam performance; 7) Difficulty of exam; 8) Stress. With these eight variables, develop a Theoretical Framework, treating variable #4 as a moderator, and variable #5 as an intervening variable. Develop four hypotheses. Research Methods for Business © 2012 John Wiley & Sons Ltd. www. wiley. com/college/sekaran