BBA 04 Bahria University

Hypotheses Development
Definition of Hypotheses: Is a logical relationship

between two or more variables expressed in the form of a testable statement.

Statement of Hypotheses: Formats

If-Then Statements

Can be used to test whether there are differences between two groups. It takes two forms: 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 Nondirectional Hypotheses

Directional

hypotheses:

the

direction

of

the

relationship between the variables (positive/negative) is indicated.

The greater the stress experienced in the job, the lower

the job satisfaction of employees. Or Women are more motivated than men are.

Nondirectional hypotheses
Non directional hypotheses: there are no indication of

the direction of the relationships between variables.

There is a relationship between age and

Job

satisfaction. Or
There is a difference between the work ethic values of

American and Arabian employees.

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Null and Alternate Hypotheses

The null hypotheses is a proposition that states a

definitive, exact relationship between two variables.

It states that the population correlation between two

variables is equal to zero (or some definite number).

In general, the null statement is expressed as no

(significant) difference between two groups.

The Alternate Hypotheses

The alternate hypotheses is the opposite of the null

hypotheses, is a statement expressing a relationship between two variables or indicating differences between groups.

Examples
The null hypotheses:

Women are more motivated than men are. Then, H0: M = w Or H0: M - w = 0 Where H0 represents the null hypotheses, M is the mean motivational level of the men, w is the mean motivational level of women.

 The alternate hypotheses for the above example:

H A : M < w Which is the same as HA : M > w Where HA represents the alternate hypotheses.

Examples for the nondirectional relationship

There is a difference between the work ethic of American and Arabian employees. The null hypotheses would be: Ho: AM = AR Or Ho: AM - AR = 0 Where AM is the mean work ethic value of Americans and AR is the mean work ethic value of Arabs.
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Examples for the nondirectional relationship

The alternate hypotheses for the above example

would statistically be set as: HA: AM AR where HA represents the alternate hypotheses.

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Examples for the nondirectional relationship

For the example: The greater the stress experienced in the

job, the lower the job satisfaction of employees. The null hypotheses would be: Ho: There is no relationship between stress experienced on the job and the job satisfaction of employees. This would be statistically expressed by: Ho: P = 0 where P represents the correlation between stress and job satisfaction, which in this case is equal to no correlation

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Examples for the nondirectional relationship

The alternate hypotheses for the above null, can be

stated as: HA: P<0 (the correlation is negative)

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Examples for the nondirectional relationship

For the example: There is a relationship between age and

job satisfaction. For this nondirectional statement, the null hypotheses would be statistically expressed as: H0: p=0

The alternate hypotheses would be expressed as: H0: P 0

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 After formulating the null and alternate hypotheses,

the appropriate statistical tests (t tests, F tests) can be applied, which would indicate whether or not support has been found for these hypotheses.

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Exercise
A production manager is concerned about the low output levels of

his employees. The articles that were read of job performance mentioned four variables as important to job performance:
skill required for the job,

rewards,
motivation, and satisfaction.

In several articles it was also indicated that only if the rewards were

(attractive) did motivation, satisfaction, and job performance increase, not otherwise.
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Exercise
Given the above situation, do the following:

1. Define the problem. 2. Evolve a theoretical framework. 3. Develop at least six hypotheses.

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Exercise (cont.)
Problem Statement

How can the job performance (output) of the employees be increased through enriched jobs and rewards?

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Schematic Diagram for the Theoretical Framework

Copyright 2003 John Wiley & Sons, Inc.

Sekaran/RESEARCH 4E

SOLUTION TO EXERCISE 5.13

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Hypotheses
HA1: If the job is enriched and utilizes all the skills

possessed by the employee, then employee satisfaction will be high. HA2: If the job is enriched and utilizes all the skills possessed by the employee, then employee motivation will be high. HA3: There will be a positive correlation between satisfaction and motivation.

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Hypotheses
HA4: Greater rewards will influence motivation and satisfaction only for those employees who find the rewards attractive, not for the others.
HA5: Satisfaction and motivation will positively influence performance. HA6: The more enriched the job and the greater the skills utilized by the job, the higher the level of employee performance.

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Exercises on Theoretical Framework

Develop a theoretical framework for the following

situation and state one testable hypothesis in the null and the alternate. A school administrator is interested in finding how the teachers strike can be stopped. He knows that pay demands and the classrooms physical environment are

the two main issues in the situation. He, however, feels

that these two are not major concerns for the teachers who are extremely dedicated to teaching.
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Exercises on Theoretical Framework (Cont.)

Theoretical Framework
Since the administrators main concern is about the

strike, teachers strike is the dependent variable. Pay and the physical environment of the classroom are the two independent variables, which influence the strike

situation.

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Exercises on Theoretical Framework (Cont.)

The greater the pay demands made by the teachers, the

greater the possibility of a strike, since the school administration refuse the idea of higher wages.
The

more uncomfortable the classroom physical

environment, the more difficult it will be for teachers to

do an effective job in the classroom, and hence the

greater the possibility of teachers going on strike.
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Exercises on Theoretical Framework (Cont.)

However, this relationship between the independent
variables and the dependent variable will be true only for those teachers who are not dedicated to teaching. The

truly dedicated teachers would be more concerned about

doing a good job despite the hardships faced by them, and hence the pay demands and the classroom environment will not be factors influencing their decision to join the strike.
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Schematic Diagram 5A

Copyright 2003 John Wiley & Sons, Inc.

Sekaran/RESEARCH 4E

THEORETICAL FRAMEWORK ANSWERS TO EXERCISES (PAGES 113-120 OF MANUAL)

5A

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Hypothesis:
H01: Dedication to teaching will not alter the

relationship between the independent variables of pay and classroom environment and the dependent variable of teachers decision to go on strike.
HA1: Only for those teachers who are not truly

dedicated to teaching, will pay considerations and classroom environment be factors that would influence their decision to go on strike.

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Secondary data
Reanalyzing the already collected data for some other

purpose
Raw vs. Compiled data

Types of secondary data

Documentary data are often used in research projects

that also use primary data collection methods. However, you can also use them on their own or with other sources of secondary data
Survey based data refers to data collected using a survey

strategy, usually by questionnaires, that have been

already analysed for their original purpose

Types of secondary data

Multiple-source secondary data can be based entirely on

documentary or on survey or can be amalgam of the two. The key factors is that different data sets have been combined to form another data set prior to your accessing the data.

Types of secondary data

Figure 8.1 Types of secondary data

Source: Saunders et al. (2006)

Locating secondary data

Establishing that the required secondary data is available Locating the precise data required

Availability of secondary data

References in publications (books, journal articles) Within organisations (unpublished sources)

Tertiary literature (indexes and catalogues in

archives or online)

Availability of secondary data

References in published guides Data held by organisations Data on the Internet

Evaluating secondary data

Fewer resource requirements Unobtrusive

Longitudinal studies may be feasible

Provision of comparative and contextual data Unforeseen discoveries may occur Generally permanent and available

Evaluating secondary data

Purpose of data collection may not match the

research needs
Access may be difficult or costly Aggregations and definitions may be unsuitable

No real control over data quality

Initial purpose may affect data presentation

Evaluating secondary data

Enable the research question(s) to be answered Enable research objectives to be met

Have greater benefits than their associated costs

Allow access for research

Evaluating secondary data

Source: Saunders et al. (2009)

Figure 8.2 Evaluating potential secondary data sources

Sources of Secondary Data

Federal Bureau of Statistics
World Bank IMF

State Bank
Ministry of Commerce Karachi Stock Exchange Business Recorder International sources

Federal Bureau of Statistics

Pakistan demographic survey
Labour force survey Business register

Weekly sensitive price indices

Foreign trade statistics Monthly price indices (CPI, WPI, SPI) National accounts Gross national product

Federal Bureau of Statistics

Census of manufacturing industries (Industry)

Employment and employment cost (all employees) Employment and employment cost (production workers) Employment and employment cost (non-production workers) Fixed assets Industrial cost Non-industrial cost Value of production Trade margin Census value added Contribution to GDP Indirect taxes Stocks statistics Value of fuel and electricity consumed

World Bank
Online data catalogs
World bank finances World development indicators

Global development finances

World development report Social economic databases Education and gender statistics

IMF
World Economic Outlook
Data are available from 1980 to the present, and

projections are given for the next two years

National accounts Inflation Unemployment rates Balance of payments

Fiscal indicators
Trade for countries and country groups Commodity prices

IMF eLibrary

IMF - International Financial Statistics

Karachi Stock Exchange

Karachi Stock Exchange

Karachi Stock Exchange

Karachi Stock Exchange

Karachi Stock Exchange

Karachi Stock Exchange

Karachi Stock Exchange

Karachi Stock Exchange

International Sources
WERS Work Place Employment Relations Survey
Projects:
Causality Of Demand For Money In Selected Asian

Economies: Short Term and Long Term Analysis TOL Projects Trust, OCB and Leadership PTCL: Making one time customer a life time partner through competitive customer service