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
To understand and

the researcher
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-toequity 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
Reference Manual

# nos of rejects
DV

IV

Interest &
Inclination
MV
Diagram of Relationships

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
Diversity (t1)

Synergy(t2)

Organizational
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
Identifies

various 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
ground control and cockpit
Decentralization

Air safety
violation

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 Scottys 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 Scottys among its customers.
The logic was simple - if the satisfaction level which
was 3.9 the previous year, shows any improvement this
year, then Scottys would adopt the same marketing
strategies as it done for the last few months!

H0
H1

Null Hypothesis

= 3.9

Alternative Hypothesis

Develop five different hypotheses for Haines company

> 3.9

Z ~ N(0,1)

Accept H0

0
I

calculated

.05

critical

Reject H0

Zcalculated < Zcritical Accept H0: = 3.9

STATE OF NATURE
NULL TRUE
FAIL TO
REJECT NULL

CORRECT DECISION

NULL FALSE

TYPE II ERROR

ACTION
REJECT
NULL

TYPE I ERROR
CORRECT DECISION

Develop

five different hypotheses for

Haines company

Exercise