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Variables, Theoretical
      framework and
          Hypotheses
value varies with respect to time,
  person and object
Production unit may yield different units
  with different workers
Absenteeism: Value may vary in different
  departments
Motivation levels: very high to very low




Variables
Dependent  variable (criterion variable)
Independent variable (predictor variable)
Moderating variable
Intervening variable




Types of variables
 Primary interest to   the researcher
 To understand and     predict
Example:
A manager is concerned that the sales of a new product
  introduced after test marketing it do not meet his
  expectations
Exercise:
A researcher is interested in investigating the debt-to-
  equity ratio of manufacturing companies in India
An applies researcher wants to increase the
 performance of organizational members in a
 particular bank




Dependent
 It influences the dependent variable in either positive
  or negative way
 Example:
Success of a new product will increase the stock value
  of the firm
Exercise:
A manager believes that good supervision and training
  would increase the production level of workers

A consultant is of the opinion that much benefit would
  accrue by buying and selling at the appropriate times
  in a financial environment where stocks are volatile.




Independent
It has a strong contingent effect on the
 independent-dependent variable relationship
  Example:
  It has been found that there is a relationship
 between availability of reference manuals
 that manufacturing companies have success
 to , and to project rejects. That is, when
 workers follow the procedures laid down the
 manual, they are able to manufacture the
 product which are flawless.




Moderating
Availability of
                                  # nos of rejects
 Reference Manual
                                            DV
      IV



                    Interest &
                    Inclination


Diagram of Relationships
            MV
A   research study indicates that the better the quality
  of the training programs in an organization and
  greater need of the growth needs of the
  employees(the need to develop and grow on the job
  is strong), greater is their willingness to learn new
  ways of doing things
 Another study indicates that the willingness of the
  employees to learn new ways of doing things is not
  influenced by the quality of training programs offered
  by the organizations to all people without any
  distinction. Only those with high growth needs seem
  to have the yearning to learn to do new things
  through specialized training.

Distinction between moderate
and independent variable
Exercise:

A visitor to a factory observes that the workers in the
  packing department have to interact with one another to
  get the work done. The more they interact the more they
  tend to stay after hours and go to the local pub together
  for a drink. However, the women packers , even though
  they interact with other as the men, do not stay late, nor
  do they visit pub after the work hours.
Exercise:
A manager find that off-the job classroom training has a
  great impact on the productivity of the employees in her
  department. However she also observes that the
  employees over 60 years of age do not seem to derive
  much benefit and do not improve with such training.


Exercise:
label variables
This variable is on that surfaces between the
   time the independent variables start operating to
   influence the dependent variable and time their
   impact is felt on it.
    Independent variable workforce diversity
   influences the dependent variable organizational
   effectiveness, the intervening that surfaces as a
   function of the diversity of the workforce that is
   the creative synergy. Creative energy surface in
   time t2 as a function of workforce diversity in t1
   and bring about organizational effectiveness in
   t3.



Intervening variable
Workforce  Creative                 Organizational
Diversity (t1)     Synergy(t2)      Effectiveness(t3)
Failure to follow accounting principles
  cause 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 the variables, explain relationships and
  diagram these




Exercise
The manager of Haines company observes that the
 morale of employees in her company is low. She
 thinks that if their working conditions are improves,
 pay scales are revised, and the vacations and benefits
 are made attractive, the morale will be boosted. She
 doubts, however, if an increase in pay scales would
 raise their morale of all the employees. Her
 conjecture is that those who have supplemental
 incomes will not just be “turned on” by higher pay,
 and only those without side incomes will be happy
 with increased pay with resultant boost of morale.

List the variables, explain relationships and diagram
  these and also define the problem.
Make up three situation where motivation
 to work would be an independent variable,
 intervening variable, and a moderating
 variable.
Foundation
Identifiesvarious types of variables
Nature and direction
Elaborate the network of association
Interviews, literature survey and
 observations
Experience and intuition also guides




Theoretical Framework
With airline deregulation, there were price wars
 among the various airlines that cut costs in
 different ways. According to the reports, Delta
 airlines faces charges of air-safety violation when
 there were several near collisions in the mid air
 and once accident resulted in 137 deaths in
 1987. Four important factors that seem to have
 influenced these are poor communication among
 the cockpit crew members themselves, poor
 coordination between ground staff and cock pit
 crew, minimal training given to cockpit crew, and
 the management philosophy that encouraged a
 decentralized structure. It would be nice to know
 if these factors did indeed contribute to the
 safety violations, and if so, to what extent.



Delta Airlines
Variables labeled
Relationships discussed
Logical relationships are discussed
Schematic diagram




                                    Training


       Communication
       among Cockpit crew

       Communication between                   Air safety
       ground control and cockpit              violation


        Decentralization
Logically conjectured relationship between
 two or more variables
If pilots are given adequate training to
 handle midair crowded situation, air safety
 violation would be reduced




Hypotheses- testing of these
relationships
IF- Then statements
If employees are more healthy will take sick
  leave less frequently
Directional & Non Directional Hypotheses (positive,
  negative, more than, less than and like)
 Greater the stress experienced in job, lower the
  job satisfaction of employees
 Women are more motivated than men
 There is a relationship between age and job
  satisfaction
 There is difference between the work ethic values
  of American and Asian employees


Statements of Hypotheses
Formats
Null hypothesis: it is a proposition that
 states definitive, exact relationship
 between two variables
No significant relationship or no significant
 difference

Rejection of null hypothesis accepts
 alternate hypothesis
State null or alternate hypothesis
Choose appropriate statistical parametric
 or non parametric test
Determine level if significance
See the output, look for critical values as
 it demarcates the region of rejection from
 that acceptance of the null hypothesis
Resultant value larger than critical value,
 null hypothesis rejected and if resultant
 value is less, then null accepted, alternate
 rejected



Steps in Hypothesis testing
Management of Scotty’s Inc., a popular hardware dealer
wanted to know about the overall image among known
customers within the Atlanta metropolitan market. The
initial question was “What marketing strategies need to
be either developed or modified to increase satisfaction
among our current and future segments?”
It thus became imperative to know if the present
‘satisfaction level’ of Scotty’s among its customers.
The logic was simple - if the ‘satisfaction level’ which
was 3.9 the previous year, shows any improvement this
year, then Scotty’s would adopt the same marketing
strategies as it done for the last few months!
H0         Null Hypothesis                  µ = 3.9


H1       Alternative Hypothesis                        µ > 3.9

Develop five different hypotheses for Haines company
Z ~ N(0,1)




                                                 α = .05
                             0
                                                                 z
                             I0.91
              Accept H0                 1.6449       Reject H0
                          Ζcalculated   Ζ critical




Zcalculated < Zcritical ⇒ Accept H0: µ = 3.9
STATE OF NATURE
                     NULL TRUE        NULL FALSE

    FAIL TO
    REJECT NULL
                  CORRECT DECISION   TYPE II ERROR
ACTION

     REJECT       TYPE I ERROR
     NULL                            CORRECT DECISION
Develop five different hypotheses for
 Haines company




Exercise

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Variables, theoretical framework and hypotheses

  • 1. Variables, Theoretical framework and Hypotheses
  • 2. value varies with respect to time, person and object Production unit may yield different units with different workers Absenteeism: Value may vary in different departments Motivation levels: very high to very low Variables
  • 3. Dependent variable (criterion variable) Independent variable (predictor variable) Moderating variable Intervening variable Types of variables
  • 4.  Primary interest to the researcher  To understand and predict Example: A manager is concerned that the sales of a new product introduced after test marketing it do not meet his expectations Exercise: A researcher is interested in investigating the debt-to- equity ratio of manufacturing companies in India An applies researcher wants to increase the performance of organizational members in a particular bank Dependent
  • 5.  It influences the dependent variable in either positive or negative way Example: Success of a new product will increase the stock value of the firm Exercise: A manager believes that good supervision and training would increase the production level of workers A consultant is of the opinion that much benefit would accrue by buying and selling at the appropriate times in a financial environment where stocks are volatile. Independent
  • 6. It has a strong contingent effect on the independent-dependent variable relationship Example: It has been found that there is a relationship between availability of reference manuals that manufacturing companies have success to , and to project rejects. That is, when workers follow the procedures laid down the manual, they are able to manufacture the product which are flawless. Moderating
  • 7. Availability of # nos of rejects Reference Manual DV IV Interest & Inclination Diagram of Relationships MV
  • 8. A research study indicates that the better the quality of the training programs in an organization and greater need of the growth needs of the employees(the need to develop and grow on the job is strong), greater is their willingness to learn new ways of doing things  Another study indicates that the willingness of the employees to learn new ways of doing things is not influenced by the quality of training programs offered by the organizations to all people without any distinction. Only those with high growth needs seem to have the yearning to learn to do new things through specialized training. Distinction between moderate and independent variable
  • 9. Exercise: A visitor to a factory observes that the workers in the packing department have to interact with one another to get the work done. The more they interact the more they tend to stay after hours and go to the local pub together for a drink. However, the women packers , even though they interact with other as the men, do not stay late, nor do they visit pub after the work hours. Exercise: A manager find that off-the job classroom training has a great impact on the productivity of the employees in her department. However she also observes that the employees over 60 years of age do not seem to derive much benefit and do not improve with such training. Exercise: label variables
  • 10. This variable is on that surfaces between the time the independent variables start operating to influence the dependent variable and time their impact is felt on it. Independent variable workforce diversity influences the dependent variable organizational effectiveness, the intervening that surfaces as a function of the diversity of the workforce that is the creative synergy. Creative energy surface in time t2 as a function of workforce diversity in t1 and bring about organizational effectiveness in t3. Intervening variable Workforce Creative Organizational Diversity (t1) Synergy(t2) Effectiveness(t3)
  • 11. Failure to follow accounting principles cause 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 the variables, explain relationships and diagram these Exercise
  • 12. The manager of Haines company observes that the morale of employees in her company is low. She thinks that if their working conditions are improves, pay scales are revised, and the vacations and benefits are made attractive, the morale will be boosted. She doubts, however, if an increase in pay scales would raise their morale of all the employees. Her conjecture is that those who have supplemental incomes will not just be “turned on” by higher pay, and only those without side incomes will be happy with increased pay with resultant boost of morale. List the variables, explain relationships and diagram these and also define the problem.
  • 13. Make up three situation where motivation to work would be an independent variable, intervening variable, and a moderating variable.
  • 14. Foundation Identifiesvarious types of variables Nature and direction Elaborate the network of association Interviews, literature survey and observations Experience and intuition also guides Theoretical Framework
  • 15. With airline deregulation, there were price wars among the various airlines that cut costs in different ways. According to the reports, Delta airlines faces charges of air-safety violation when there were several near collisions in the mid air and once accident resulted in 137 deaths in 1987. Four important factors that seem to have influenced these are poor communication among the cockpit crew members themselves, poor coordination between ground staff and cock pit crew, minimal training given to cockpit crew, and the management philosophy that encouraged a decentralized structure. It would be nice to know if these factors did indeed contribute to the safety violations, and if so, to what extent. Delta Airlines
  • 16. Variables labeled Relationships discussed Logical relationships are discussed Schematic diagram Training Communication among Cockpit crew Communication between Air safety ground control and cockpit violation Decentralization
  • 17. Logically conjectured relationship between two or more variables If pilots are given adequate training to handle midair crowded situation, air safety violation would be reduced Hypotheses- testing of these relationships
  • 18. IF- Then statements If employees are more healthy will take sick leave less frequently Directional & Non Directional Hypotheses (positive, negative, more than, less than and like)  Greater the stress experienced in job, lower the job satisfaction of employees  Women are more motivated than men  There is a relationship between age and job satisfaction  There is difference between the work ethic values of American and Asian employees Statements of Hypotheses Formats
  • 19. Null hypothesis: it is a proposition that states definitive, exact relationship between two variables No significant relationship or no significant difference Rejection of null hypothesis accepts alternate hypothesis
  • 20. State null or alternate hypothesis Choose appropriate statistical parametric or non parametric test Determine level if significance See the output, look for critical values as it demarcates the region of rejection from that acceptance of the null hypothesis Resultant value larger than critical value, null hypothesis rejected and if resultant value is less, then null accepted, alternate rejected Steps in Hypothesis testing
  • 21. Management of Scotty’s Inc., a popular hardware dealer wanted to know about the overall image among known customers within the Atlanta metropolitan market. The initial question was “What marketing strategies need to be either developed or modified to increase satisfaction among our current and future segments?” It thus became imperative to know if the present ‘satisfaction level’ of Scotty’s among its customers. The logic was simple - if the ‘satisfaction level’ which was 3.9 the previous year, shows any improvement this year, then Scotty’s would adopt the same marketing strategies as it done for the last few months!
  • 22. H0 Null Hypothesis µ = 3.9 H1 Alternative Hypothesis µ > 3.9 Develop five different hypotheses for Haines company
  • 23. Z ~ N(0,1) α = .05 0 z I0.91 Accept H0 1.6449 Reject H0 Ζcalculated Ζ critical Zcalculated < Zcritical ⇒ Accept H0: µ = 3.9
  • 24. STATE OF NATURE NULL TRUE NULL FALSE FAIL TO REJECT NULL CORRECT DECISION TYPE II ERROR ACTION REJECT TYPE I ERROR NULL CORRECT DECISION
  • 25. Develop five different hypotheses for Haines company Exercise