Theoretical Framework and Hypothesis Development

Theoretical Framework and Hypothesis DevelopmentVariableAnything that can take on differing or varying values.

Examples:

Production unitsAbsenteeismMotivationTypes of VariablesThe dependent variable

The independent variable

The moderating variable

The intervening variable Dependent VariableIt is the main variable that lends itself for investigation as a viable factor.

For Example:An applied researcher wants to increase the performance of organizational members in a particular bank.

A marketing manager wonders why the recent advertisements strategy does not work.

Research studies indicate that successful new product development has an influence on the stock market price of the company. That is, the more successful the new product turns out to be, the higher will be the stoc

Independent VariableThe independent variables are those that are deliberately manipulated to invoke a change in the dependent variables.

For Example: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 the stocks are volatile. Moderating VariableThe moderating variable is one that has a strong contingent effect on the independent variable and dependent variable relationship. That is the presence of a third variable modifies the original relationship between the independent and the dependent variables.Moderating VariableScenario 1: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.Moderating VariableScenario 2:A visitor to a factory observes that the workers in the packing department have to interact with one another to get their jobs done. The more they interact, the more they seem to tend to stay after hours and go to the local restaurant for coffee. However, the women packers, even though they interact with others as much as the men, do not stay late, nor do they visit the restaurant after work hours.A prevalent theory is that the diversity of the workforce (according to different ethnic origins, races, and nationalities) contributes more to organizational effectiveness because each group brings it own special expertise and skills to the workplace. This synergy can be exploited, however, only if managers know how to harness the special talents of the diverse work group; otherwise, they will remain untapped.

Intervening Variable An intervening variable is one that surfaces between the time the independent variables start operating to influence the dependent variable and the time their impact is felt on it. The intervening variable surfaces as a function of the independent variables opening in any situation and helps to conceptualize and explain the influence of the independent variable on the dependent variable. Intervening Variable Scenario 1:

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.Intervening Variable Scenario 2:The manager of Haines company observes that the morale of employees is low She thinks that if working conditions are improve, pay scales raised, and the vacation benefits made attractive, the morale will be boosted. She doubts however, if an increase of pay scales would raise the morale of all employees. Her perception is that those that 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 resultant boost of morale.EXAMPLEA prevalent theory is that the diverse workforce contributes more to organizational effectiveness because each group brings its own special expertise and skills to the work place. The synergy can be captured, however, only if managers know how to harness the special talents of the diverse work group; otherwise they will remain untapped.Workforce diversityCreative SynergyOrganizationaleffectivenessManagerial expertiseInd. VM.V.Int. V.Dep. Var.ExerciseSelect a variable and make up four different situations in which the variable is used as :

Independent variableDependent VariableIntervening variableModerating variableCOMPONENTS OF THEORETICAL FRAMEWORKThe variables considered relevant to the study should be clearly identified and labeled in the discussionsThe discussions should state how two or more variables are related to one another. This should be done for the important relationships that are theorized to exist among the variables.COMPONENTS (continued)If the nature and direction of the relationships can be theorized on the basis of the findings from previous research, then there should be an indication in the discussions as to whether the relationships would be positive or negative.There should be a clear explanation of why we would expect these relationships to exist. The arguments could be drawn from the previous research findings.A schematic diagram of the theoretical framework should be given so that the reader can see and easily comprehend the theorized relationships.

Theoretical Framework

A framework is a model of how one theorizes or makes logical sense of the relationships among several factors that have been identified as important to the problem. (Sekaran, 2001)

The Relationship Between the Literature Survey and the Theoretical Framework

The literature survey provides a solid foundation for developing the theoretical framework.The literature survey identifies the variables that might be important, as determined by previous research findings.The theoretical framework elaborates the relationships among the variables, explains the theory underlying these relations, and describes the nature and direction of the relationships.The theoretical framework provides the logical base for developing testable hypotheses.

TheoryTheories are constructed in order to explain, predict and master phenomena (e.g. relationships, events, or the behavior). In many instances we are constructing models of reality. A theory makes generalizations about observations and consists of an interrelated, coherent set of ideas and models. Formulating the Theoretical FrameworkThe theoretical framework of the study is a structure that can hold or support a theory of a research work. It presents the theory which explains why the problem under study exists.Thus, the theoretical framework is but a theory that serves as a basis for conducting research.

Theoretical Framework1. Consists of the variables considered relevant to the study2. Shows the nature and direction of relationships3. Sometimes show the positive and negative relationships according to previous researches4. Consists of a diagram to easily comprehend the theorized relationships.Exercise of theoretical frameworkWith airline deregulations, there were price wars among various airlines. Delta Airline faced charges of air-safety violations when there were several near collisions in mid air and one accident that resulted in 137 deaths. Four important factors that seemed to have influenced these are poor communication among the cockpit crew members themselves, poor coordination between ground staff and cockpit crew, minimal training given to the cockpit crew,and management philosophy that encouraged a decentralization structure. Lack of adequate training makes thae pilot nervous and diffident and thus they are not able to handle the situation confidently in mid air. It would be nice to know if these factors did indeed contribute to the safety violations, and if so to what extent.HYPOTHESISHypothesis is a formal statement that presents the expected relationship between an independent and dependent variable

Characteristics of HypothesisIt should be clear and preciseIt should be capable of being testedIt should state relationship between variablesIt should be limited in scope and must be specificIt should be understandableIt should be consistent with most known factsIt should be test with amenable time It should be comprises needed explanations K. SYED, MPT (Ortho)25Types of Hypothesis If-then statements:A hypothesis can also test whether there are differences between two groups with respect to any variable.Employees who are more healthy will take sick leave less frequently.

If employees are more healthy, then they will take sick leave less frequently.Types of Hypothesis 2. Directional and Non directional Hypothesis:

If terms such as positive, negative, more than, less than are used, then the hypothesis are directional because the relationship between variables is indicated.For Example:The greater the stress experienced in the job, the lower the job satisfaction level of employees. Types of Hypothesis Non-Directional Hypothesis:

No indication of the direction of the relationship is given.

For example:There is a relationship between age and job satisfaction.Types of Hypothesis Hypothesis

Null Hypothesis

Alternate HypothesisHypothesis Testing

Consider the simple experiment, where 50 agents are assigned to a difficult goal condition and 50 other agents to an easy goal condition. Assume that, after one year, the difficult-goal agents sold an average of $156,000 worth of insurance, while the easy-goal agents sold only $121,000 worth. On the surface, this seems to support your hypothesis that agents sell more insurance when they have difficult goals. But, even if goal setting had no effect at all, you dont really expect the two groups of 50 agents to sell exactly the same amount of insurance. You expect one group to sell somewhat more than the other due to chance alone. The difficult-goal group did sell more insurance, but did it sell enough more to make you confident that the difference was due to placing the agents in different goal groups?Types of HypothesesTwo different types of hypotheses are relevant to most statistical tests. The first is called the null hypothesis, which is often abbreviated as H0. The null hypothesis is a statement that, in the population(s) being studied, there are either (a) no differences between the group means, or (b) no relationships between the measured variables.H0: In the population, the amount of insurance sold by individuals assigned difficult goals does not differ from the amount of insurance sold by individuals assigned easy goals. This null hypothesis can also be expressed with symbols in the following way: H0: M1 = M2whereH0 represents the null hypothesisM1 represents mean sales for the difficult-goal populationM2 represents mean sales for the easy-goal population.alternative hypothesis (H1)In contrast to the null hypothesis, there is also an alternative hypothesis (H1) that states the opposite of the null. The alternative hypothesis is a statement that there is a difference between the means, or that there is a relationship between the variables, in the population(s) being studied.H1: In the population, individuals assigned difficult goals differ from individuals assigned easy goals with respect to the mean amount of insurance sold.This alternative hypothesis can also be expressed with symbols in the following way:H1: M1 M2Directional Vs Nondirectional Research Question for Differences: Do boys like reading more than girls? Null Hypothesis: Boys do not like reading more than girls.Alternative Hypothesis: Boys do like reading more than girls.

Research Question for Differences: Do boys' and girls' attitude towards reading differ? Null Hypothesis: Boys' and girls' attitude towards reading do not differ. Alternative Hypothesis: Boys' and girls' attitude towards reading differ.