1. The Role of Business Research Theory Building

2. The scope of business research What is “business” anyway??? Is research applicable to all business units/functions?

3. Business research defined the systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions

4. Types of research PURE expand the limits of knowledge not aimed at solving a specific pragmatic problem theory development APPLIED aimed at solving a specific pragmatic problem “action research” is one type

5. Applications identifying problems or opportunities diagnosis and assessment selecting and implementing a course of action evaluating a course of action –Evaluation Performance monitoring

6. Research isn’t always the answer! Before doing research consider the following: –time constraints –availability of data –nature of the decision –has the decision already been made? –does the cost outweigh the benefit?

7. Nature of truth knowledge is socially constructed

8. Sources of Knowledge Experience –but may not be systematic –may not be universal Authority –custom –tradition –but how does authority know?

9. Francis Bacon

10. SOURCES OF KNOWLEDGE ExperienceAuthority Deductive Reasoning Inductive Reasoning

11. SOURCES OF KNOWLEDGE ExperienceAuthority Deductive Reasoning Inductive Reasoning Scientific Method –inductive - deductive

12. Theory Formulation Deductive Reasoning The logical process of deriving a conclusion from a known premise or something known to be true. We know that all managers are human beings. If we also know that John Smith is a manager, then we can deduce that John Smith is a human being. Subject to error!

13. Inductive Reasoning The logical process of establishing a general proposition on the basis of observation of particular facts. All managers that have ever been seen are human beings; therefore all managers are human beings. Subject to error too!

14. THE SCIENTIFIC APPROACH

15. THEORY is a system for explaining a set of phenomena by specifying constructs and the laws that relate these constructs to each other. is a system for explaining a set of phenomena by specifying constructs and the laws that relate these constructs to each other.

16. Purpose of Theories to summarize and organize existing knowledge to explain observed events and relationships to predict the occurrence of unobserved events and relationships to predict the occurrence of unobserved events and relationships to stimulate further inquiry –identifying areas –providing leads

17. What makes a good theory? Validity –It fits the facts Generalization –Makes predictions about future or other events Replication –It can be repeated with similar findings

18. Constructs In management we often use concepts or constructs as variables examples: –leadership –social responsibility –GNP –agency –honesty –efficiency

19. Abstraction Concepts abstract reality –Are expressed in words that refer to various events or objects –Vary in degree of abstraction –Research operates at abstract and empirical level linking concepts together as we begin the journey to construct theory.

20. Propositions Concepts are the basic building blocks Propositions propose the linkages between these concepts theory propositions concepts Level of abstraction

21. From proposition to hypothesis Concept A: Punishment Concept B: Attendance Yelling at students Increases attendance by 50% Abstract Level Emperical Level Proposition Hypothesis

22. A hypothesis is a proposition that is empirically testable. It is an empirical statement concerned with the relationship among variables. A variable is anything that… varies! Make sure that you define, or operationalize all your variables… an operational definition Null hypothesis

23. What makes a good hypothesis? precise specifies variables to measure specifies relationships between variables

24. A poor hypothesis Students spend too much money on fast food.

25. A better hypothesis Students with incomes of less than 10,000 per year spend a higher proportion of their income in fast food restaurants than the established mean for the general population.

27. Maslow’s Hierachy of Needs Physiological – hunger, thirst, shelter, sex, and other bodily needs. Safety – security and protection from physical and emotional harm. Social – affection, belongingness, acceptance, and friendship Esteem – internal: self-respect, autonomy, and achievement; external: status, recognition, and attention Self-Actualization – growth, achieving one’s potential, self-fulfillment.

28. Motivation Theory Theory X – The assumption that employees dislike work, dislike responsibility, and must be coerced to perform. Theory Y – The assumption that employees like work, are creative, seek responsibility, and can exercise self direction Douglas McGregor, In Robbins, S. & Langton, N. (2003). Organizational Behaviour. New Jersey, USA: Prentice Hall Inc. Douglas McGregor, In Robbins, S. & Langton, N. (2003). Organizational Behaviour. New Jersey, USA: Prentice Hall Inc.

29. Hypothesis Can you create a hypothesis to test these theories among University students?