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Research Methods For Business: A Skill Building Approach
Research Methods For Business: A Skill Building Approach
Research Methods For Business: A Skill Building Approach
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Chapter one
Introduction to research
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WHAT IS RESEARCH?
3
BUSINESS RESEARCH
4
DEFINITION OF BUSINESS RESEARCH
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BUSINESS RESEARCH
6
BUSINESS RESEARCH
7
BUSINESS RESEARCH
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BUSINESS RESEARCH
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SOME COMMONLY RESEARCHED AREAS IN BUSINESS
ORGANIZATIONS
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TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC
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TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC
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TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC
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TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC
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TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC
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TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC
Applied research
For example, a particular product may not be selling well and the
manager might want to find the reasons for this in order to take
corrective action. Such research is called applied research.
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MANAGERS AND RESEARCH
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THE MANAGER AND THE CONSULTANT-
RESEARCHER
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THE MANAGERS – RESEARCHER RELATIONSHIP
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INTERNAL CONSULTANTS / RESEARCHERS 1-2
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INTERNAL CONSULTANTS / RESEARCHERS
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EXTERNAL CONSULTANTS / RESEARCHERS
researchers researchers
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JOURNALS
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Chapter two
Scientific investigation
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THE HALLMARKS OF SCIENTIFIC RESEARCH 1-3
1. Purposiveness
Start the research with a definite aim or purpose.
2. Rigor
Rigor means carefulness, attention to details, and
preciseness in research investigations.
3. Testability
The questions, claims, propositions, and hypotheses can
be tested by applying certain statistical tests to the data
collected for the purpose. (questions can be answered
with data or mathematically)
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THE HALLMARKS OF SCIENTIFIC RESEARCH 2-3
4. Replicability
The results of the tests of hypotheses should be supported again and
yet again when the same type of research is repeated in other similar
circumstances.
5. Precision and confidence
Design the research in a manner the ensures that our findings are
close to reality.
Precision: reflects the degree of accuracy of the results on the basis
of the sample, to what really exists in the universe.
Confidence: refer to the probability that our estimations are correct,
it is important that we can confidently claim that 95% of the time
our results will be true and there is only a 5 % chance of being
wrong.
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THE HALLMARKS OF SCIENTIFIC RESEARCH 3-3
6. Objectivity
The conclusion drawn through the interpretation of the results of
data analysis should be based on facts of the findings derived from
actual data, and not on our own subjective or emotional values.
7. Generalizability
Refers to the scope of applicability of the research findings in one
organizational setting to other settings.
8. Parsimony
Simplicity in explaining the phenomena or problems that occur, and
in generating solutions for the problem,
And it can be introduced with a good understanding of the problem
(question) and the important factors that influence it.
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SOME OBSTACLES TO CONDUCTING
SCIENTIFIC RESEARCH IN THE
MANAGEMENT AREA
In the management and behavioral areas, it is not
always possible to conduct investigations that are
100 % scientific, in the sense that, unlike in the
physical sciences, the results obtained will not be
exact and error-free.
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SOME OBSTACLES TO CONDUCTING
SCIENTIFIC RESEARCH IN THE
MANAGEMENT AREA
In the management and behavioral areas, it is not
always possible to conduct investigations that are
100 % scientific, in the sense that, unlike in the
physical sciences, the results obtained will not be
exact and error-free. This is primarily because of
difficulties likely to be encountered in the
measurement and collection of data in the
subjective areas of feelings, emotions, attitudes,
and perceptions.
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TWO APPROACHES TO RESEARCH
� Induction
� Deduction
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Induction
■ Induction is a process where we observe certain
phenomena and on this basis arrive at conclusions.
� NARCISSISM
excessive interest in or admiration of oneself,
one's own talents and a craving for admiration.
excessive pride in one's appearance, qualities,
abilities, achievements, etc (self obsessed, self
appreciation)
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EXAMPLE (GENDER AND NARCISSISM)
� NARCISSISM
excessive interest in or admiration of oneself,
one's own talents and a craving for admiration.
excessive pride in one's appearance, qualities,
abilities, achievements, etc (self obsessed)
Males are more narcissist or females?
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EXAMPLE (GENDER AND NARCISSISM)
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EXAMPLE (GENDER AND NARCISSISM)
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EXAMPLE (GENDER AND NARCISSISM)
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THE SEVEN-STEP PROCESS IN THE
HYPOTHETICO-DEDUCTIVE
METHOD 1-2
1. Identify a broad problem area
A drop in sales, frequent production interruptions,… and the like, could
attract the attention of manager and catalyze the research project
2. Define the problem statement (research question)
Problem statement that stats the general objective of the research
should be developed
3. Develop hypotheses
In this step variable are examined as to their contribution or influence
in explaining why the problem occurs and how it can be solved.
4. Determine measures
Unless the variables in the theoretical framework are measured in some
way, we will not be able to test our hypotheses.
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THE SEVEN-STEP PROCESS IN THE
HYPOTHETICO-DEDUCTIVE
METHOD 2-2
5. Data collection
Data with respect to each variable in the hypothesis need to be
obtained.
6. Data analysis
In the data analysis step, the data gathered are statistically
analyzed to see if the hypotheses that were generated have been
supported
7. Interpretation of data
Now we must decide whether our hypotheses are supported or not
by interpreting the meaning of the results of the data analysis.
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Chapter Three
The research process
The broad problem area and defining the
problem statement
40
THE SEVEN-STEP PROCESS IN THE
HYPOTHETICO-DEDUCTIVE
METHOD 1-2
1. Identify a broad problem area
A drop in sales, frequent production interruptions,… and the like, could
attract the attention of manager and catalyze the research project
2. Define the problem statement (research question)
Problem statement that stats the general objective of the research should
be developed
3. Develop hypotheses
In this step factors (variables) are examined as to their contribution or
influence in explaining why the problem occurs and how it can be
solved.
4. Determine measures
Unless the variables in the theoretical framework are measured in some
way, we will not be able to test our hypotheses.
41
THE SEVEN-STEP PROCESS IN THE
HYPOTHETICO-DEDUCTIVE
METHOD 2-2
5. Data collection
Data with respect to each variable in the hypothesis need to be
obtained.
6. Data analysis
In the data analysis step, the data gathered are statistically
analyzed to see if the hypotheses that were generated have been
supported
7. Interpretation of data
Now we must decide whether our hypotheses are supported or not
by interpreting the meaning of the results of the data analysis.
42
The definition of problem is any situation where a
gap exists between the actual and the desired ideal
states.
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1. BROAD PROBLEM AREA :
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1. BROAD PROBLEM AREA :
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1. BROAD PROBLEM AREA :
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1. BROAD PROBLEM AREA :
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2. PRELIMINARY INFORMATION GATHERING :
a) Data sources :
1. Primary data sources it is that information that
the researcher obtains by himself by , talking ,
observing, and administrating questionnaires
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2. PRELIMINARY INFORMATION GATHERING :
a) Data sources :
1. Primary data sources it is that information that
the researcher obtains by himself by , talking ,
observing, and administrating questionnaires
2. Secondary data sources it is that information that
already exists and the researcher has no role in
obtaining it but he reads it and take what he needs
from it
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Interviews and informal talks:
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Collection of information about the following factors to explore
the real issues instead of working only on the surface symptoms
a) Contextual factors background information of the
organization
b) Structural factors philosophy, policies, goals, system
structure, reward system
c) Attitudinal factors information about beliefs and views of
the members of organization about nature of the work, reward
system , opportunities
d) Behavioral factors actual work habits
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In some cases there are variables that are not
identified during the interviews but influence the
problem critically, then research done without
considering them is an exercise in futility,
52
In some cases there are variables that are not
identified during the interviews but influence the
problem critically, then research done without
considering them is an exercise in futility, in such
case the true reason for the problem will remain
unidentified even at the end of the research,
53
In some cases there are variables that are not
identified during the interviews but influence the
problem critically, then research done without
considering them is an exercise in futility, in such
case the true reason for the problem will remain
unidentified even at the end of the research, to
avoid such possibilities the researcher needs to
delve into all the important factors relating to the
particular problem area.
54
3. LITERATURE REVIEW :
� The literature review helps the researcher to
develop a good problem statement; it ensures that
no important variable is overlooked in the process
of defining the problem
� Sometimes the investigator might spend
considerable time and effort in “discovering”
something that has already been thoroughly
researched. A Literature review would prevent
such a waste of resources in reinventing the wheel.
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CONDUCTING THE LITERATURE REVIEW
1- Data sources
Text books, journals, theses, conference
proceedings, unpublished manuscripts, reports,
newspapers, the internet.
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2- Searching for literature
� Internet online searching directories (subject,
title, geographical location)
� Library
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Why literature review
� Important variables that are likely to influence
the problem situation are not left out of the study,
even if these had not surfaced during interviews.
� It gives a good basic framework to proceed
further with the investigation.
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4- Documenting the literature review
Is important to convince the reader that the
researcher is knowledgeable about the problem area
and has done the preliminary homework that is
necessary to conduct the research
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� The next step for the researcher is to tabulate the
various types of information that have been
gathered during the interviews and determine if
there are any patterns in the responses.
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� The next step for the researcher is to tabulate the
various types of information that have been
gathered during the interviews and determine if
there are any patterns in the responses.
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DEFINING THE PROBLEM STATEMENT
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DEFINING THE PROBLEM STATEMENT
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DEFINING THE PROBLEM STATEMENT
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PROBLEM AREA :
65
PROBLEM AREA :
66
PROBLEM AREA :
Employees’ poor performance
Rewards
Supervision (abusive)
injustice
Training
Safety
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PROBLEM STATEMENT (RQ)
Problem definitions could pertain to:
� existing business problems where a manager is looking for a
solution
� situations that may not pose any current problems but which
the manager feels have scope for improvement
� situations in which a researcher is trying to answer a research
question empirically because of interest in the topic
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ACADEMIC RESEARCH
If you have a research question which is not well explored by the
researchers, and you think that it is an important omission
in the literature.
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ACADEMIC RESEARCH
If you have a research question which is not well explored by the
researchers, and you think that it is an important omission
in the literature.
� Literature Review
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Chapter Four
The research process
Theoretical framework and hypothesis
development
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THE NEED FOR A THEORETICAL FRAMEWORK
73
THE PROCESS OF BUILDING A THEORETICAL
FRAMEWORK INCLUDES:
74
VARIABLES:
75
TYPES OF VARIABLES :
1- Dependent variable
The dependent variable is the variable of
primary interest to the researcher. Through the
analysis of the dependent variable is possible to
find answers to your questions.
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2- Independent variable
Independent variable is one that influences the
dependent variable in either a positive or negative
way. That is, when the independent variable is
present, the dependent variable is also present,
and with each unit of increase/decrease in the
independent variable, there is an increase or
decrease in the dependent variable.
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THE PROCESS OF BUILDING A THEORETICAL
FRAMEWORK INCLUDES:
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THE PROCESS OF BUILDING A THEORETICAL
FRAMEWORK INCLUDES: EXAMPLE
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THE PROCESS OF BUILDING A THEORETICAL
FRAMEWORK INCLUDES: EXAMPLE
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THE PROCESS OF BUILDING A THEORETICAL
FRAMEWORK INCLUDES: EXAMPLE
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3- Moderating variable
The moderating variable is the presence of a
third variable that modifies the relationship
between the independent and the dependent
variables.
82
**SELF-EFFICACY IS THE BELIEF IN ONE'S CAPABILITIES, OR THE
DEGREE OF CONFIDENCE THAT PEOPLE HAVE IN THEIR ABILITY TO
SUCCEED AT A TASK THAT MATTERS TO THEM.
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4- Mediating variable
The mediator has been called an intervening or
process variable.
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THEORETICAL FRAMEWORK
� The theoretical framework is the foundation on which the
entire research project is based.
� Variables relevant to the problem situation, identified
through; interviews, observations, and literature review.
� Experience and intuition also guide the development of
theoretical framework
� Next step is to elaborate the network of associations among the
variables, so that relevant hypotheses can be developed and
subsequently tested.
� Based on the results of hypothesis testing, the extent to which
the problem exists, or can be solved becomes evident.
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� The theoretical framework:
o Represents and elaborates the relationship among the
variables.
o Explains the theory (logic, reasoning) underlying these
relations.
o Describes the nature and direction of the relationships.
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BASIC FEATURES IN ANY THEORETICAL
FRAMEWORK:
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HYPOTHESIS DEVELOPMENT
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HYPOTHESIS DEVELOPMENT
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STATEMENT OF HYPOTHESIS : FORMATS
1- If-Then statement
To examine whether or not the proposed
relationship or differences exist, a hypothesis can
be set in the form of If-Then statement.
Example:
IF the performance of employee decreases,
THEN abusive supervision increases
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2- Directional and non directional hypothesis
If, instating the relationship between two variables or comparing two groups,
terms such as positive, negative, more then, less then, and the like are used, then
these are:
Directional hypothesis because the direction of the relationship between the
variables ( positive – negative) is indicated.
Example:
The greater the stress experienced in the job, the lower the job satisfaction of
employees.
Non directional hypothesis there is a significant relationship between two
variables, we may not be able to say whether the relationship is positive or
negative.
Example:
There is a relationship between age and job satisfaction.
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3- Null and alternate hypothesis
�The null statement is expressed in terms of
there being no relationship or difference between
two variables.
�The alternate hypothesis, whish is the opposite
of the null, is a statement expressing a
relationship or difference between two variables.
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The steps to be followed in hypothesis testing
are:
1. State the null and the alternate hypothesis.
2. Choose the appropriate statistical test.
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THEORETICAL FRAMEWORK
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SCALES:
97
THERE ARE FOUR BASIC TYPES OF SCALES:
▪ Nominal scale
▪ Ordinal scale
▪ Interval scale
▪ Ratio scale
98
Levels of Measurement
and Measurement Scales
Differences between Highest Level
measurements, true Ratio Data
zero exists (Strongest forms of
measurement)
Differences between
measurements but no Interval Data
true zero
Higher Levels
Ordered Categories
(rankings, order, or Ordinal Data
scaling)
101
There are two types :
a) Dichotomous scale :
Used to … elicit a yes or no answer
ex. Do you own a car? Yes no
b) Category scale :
Used to … elicit a single response
ex. Where in London do you reside?
- east London - south London
- west London - north London
-outskirts
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2- ORDINAL SCALE:
In this scale the respondents might be asked to indicate
their preferences by ranking the importance they attach to
different given options. Asking preference for five distinct
characteristics in a job that the researcher might be
interested in studying
Job characteristic Ranking of importance
The opportunity provided by the job to -
Interact with people -
Use a number of different skills -
Complete a whole task from beginning to end -
Serve others -
Work independently -
103
Here we know the differences in the ranking of objects,
persons, or events investigated but we don’t know their magnitude
There are two types:
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3- INTERVAL SCALE:
106
This can be done by changing the scale from the ranking
type to make it appear as if there are several points on a
scale that represent the extent or magnitude. So it used
when responses to various items that measure a variable
can be tapped on a five points or more
Strongly disagree disagree neither agree nor disagree agree strongly agree
1 2 3 4 5
Interacting with other 1 2 3 4 5
Working independently 1 2 3 4 5
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There are five types:
1) Semantic differential scale:
It is used to assess respondent’s attitudes toward a particular
brand, advertisement, object, or individual.
Several bipolar attributes: respondents are asked to indicate
their attitudes toward a particular individual, object
Several bipolar adjectives: used might employ such terms as
good-bad, strong-weak, hot-cold
Responsive -----unresponsive
Beautiful --------ugly
Courageous ------- timid
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1) Semantic differential scale:
How well we physiologically understand and express
our feelings. The basis is the use of adjective pairs,
applied to our experiences or feelings. The strength of
this approach is that we do not have to be an expert
interpreting our feelings, but giving objective feedback
based on additives we know connecting the emotional
to existing understanding.
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1) Semantic differential scale:
How well we physiologically understand and express
our feelings. The basis is the use of adjective pairs,
applied to our experiences or feelings. The strength of
this approach is that we do not have to be an expert
interpreting our feelings, but giving objective feedback
based on additives we know connecting the emotional
to existing understanding.
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2) Numerical scale :
Similar to the semantic scale but with numbers on
five-point or seven-point scale are provided
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3) Itemized rating scale
It provides the flexibility to use as point in the scale as considered necessary
(4,5,7,9 or whatever) and its possible to use different anchors e.g. very
unimportant to very important and extremely low to extremely high )when a
neutral point is provided it is a balanced rating scale, and when it is not it is an
unbalanced rating scale.
1 2 3 4 5
Very unlikely Unlikely Neither unlikely nor likely Very likely
likely
1 I will be changing my job within the next 12 months
2 I will take on new assignments in the near future
3 It is possible that I will be out of this organization within the next 12 months
114
Semantic vs Likert:
Both scales essentially ask for intensity judgement,
but SDS is split in the middle where likert isn't. A
person filling and SDS scale will typically follow 2
steps:
� Is it good or bad? (one side or the other). If you
do provide a neutral option, this is also an option.
� How good or bad is it?
115
Semantic vs Likert:
With a 5 point likert there are 5 intensities to
choose from. Although you can argue that the
middle point splits the scale to good and bad, the
fact there aren't two polars mean it ain't quite so.
Consider:
I think the site looks professional. (Answer: Disagree).
The person disagrees that the site looks professional, but
they may not think it looks amateur - on a SDS scale, they
may still mark the middle point.
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Semantic vs Likert:
Consider the following dialog:
- Do you think David Cameron is a good prime
minister?
- No I don't.
- Is he a bad one?
- I didn't say so, he isn't bad, but he isn't good.
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Semantic vs Likert:
� The down side of the Likert is the inability to quantify
anything rather than agreement to a question. We are
asking the respondent to respond to our question, rather
than express their feeling or emotion.
� Sometimes it is hard to find pairs to articulate exactly
what you wish to ask. How do you convert this likert to
SDS:
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I would recommend the site to friends:
� Strongly Agree
� Agree
� Neutral
� Disagree
� Strongly Disagree
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4- RATIO SCALE:
Usually used in organizational research when exact numbers on
objective (as opposed to subjective) factors are called:
1. How many other organizations did you work for before joining
this system?
2. Please indicate the number of children you have below 3 years of
age
3. How many retail outlets do you operate?
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121
RESEARCH DESIGN
� The function of a research design is to ensure that the
evidence obtained enables us to answer the initial
question as precisely as possible.
� In other words, when designing research we need to ask:
given the research question (or theory), what type of
evidence is needed to answer the question (or test the
theory) in a convincing way?
� The central role of research design is to minimize the
chance of drawing incorrect causal inferences from data.
Sample, data collection method, data type, data analysis
122
Chapter Ten
Sampling
123
SAMPLING
▪ It is the process of choosing a representative
sample from a target population and collecting
data from that sample in order to understand
something about the population as a whole.
▪ Sampling is necessary because we usually cannot
gather data from the entire population due to
large (country, city, etc.) or inaccessible
population or lack of resources. (costly in terms
of money, time, and effort)
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THE SAMPLING PROCESS:
125
DEFINITIONS:
� Population:
Group of people, events, or things of interest that the researcher wishes
to investigate.
� Element:
128
THE SAMPLING PROCESS:
129
4- Determining the sample size:
Factors affecting decisions on sample size are:
Extent of precision desired.
Amount of variability in the population itself.
Cost and time constraints.
Size of the population.
130
RULES OF THUMB FOR DETERMINING SAMPLE
SIZE (ROSCOE, 1975)
131
PROBABILITY SAMPLING:
132
2 - Restricted or complex probability sampling:
It is a design that involves drawing every nth element in the
population starting with a randomly chosen element between 1
Systematic sampling and n.
« Easy and quickness in developing the sample »
133
PROBABILITY SAMPLING:
134
STRATIFICATION VS CLUSTERING
Stratification Clustering
Divide population in to groupsDivide population in to
different from each other: comparable (similar groups):
gender, race, age etc. schools, cities etc.
Sample randomly from each Randomly sample some of the
group. groups, sample randomly from
selected groups
Less error compared to simple More error compared to
random sample. simple random sample.
Expensive to obtain Reduces cost of sampling.
stratification information Information is not collected
before sampling. from all groups.
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136
MULTISTAGE SAMPLING
137
MULTISTAGE SAMPLING
138
NON PROBABILITY SAMPLING:
When elements in the population do not have any
probabilities attached to their being chosen as sample
subjects.
Convenient Sampling:
Refers to the collection of information from members of the
population who are conveniently available to provide it.
It is used during the exploratory phase of a research project
and is perhaps the best way of getting some basic information
quickly and efficiently.
139
Judgment and Quota sampling:
140
JUDGMENT SAMPLING
141
BIASED SAMPLES (CONVENIENT, OR AFGHANISTAN)
142
BIASED SAMPLES
143
SAMPLING FOR QUALITATIVE STUDIES
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SAMPLING FOR QUALITATIVE STUDIES
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SAMPLING FOR QUALITATIVE STUDIES
146
147
SPSS
148
SOME DEFINITIONS
149
� Mean (average) is the sum of the values divided by the
number of values
� Median is the midpoint of the values (50% above; 50%
below) after they have been ordered from the smallest to the
largest, or the largest to the smallest
� Mode is the value among all the values observed that appears
most frequently
� Range is the difference between the smallest and largest
observation in the sample
150
VARIANCE AND STANDARD DEVIATION
152
STANDARD DEVIATION (LOW & HIGH)
153
NORMAL DISTRIBUTION (S.D.)
154
VARIANCE AND STANDARD DEVIATION
155
DATA TYPE & DATA ANALYSIS
156
157
CORRELATION
158
CORRELATION
159
CORRELATION
� The main result of a correlation is called the
correlation coefficient (or "r"). It ranges from -1.0
to +1.0. The closer r is to +1 or -1, the more
closely the two variables are related.
� If r is close to 0, it means there is no relationship
between the variables. If r is positive, it means
that as one variable gets larger the other gets
larger. If r is negative it means that as one gets
larger, the other gets smaller
160
CORRELATION
161
CORRELATION
162
CORRELATION
163
REGRESSION
� regression analysis is a statistical process for
estimating the relationships among variables.
� It includes many techniques (e.g. OLS) for
modeling and analyzing several variables, when
the focus is on the relationship between a
dependent variable and one or more independent
variables (or 'predictors').
� Regression analysis is widely used for hypothesis
testing and forecasting
164
REGRESSION
165
CORRELATION VS REGRESSION
166
SPSS
167
THANK YOU
168