4 Theoretical Framework 5 Basic FeaturesIdentifying and labeling variables correctlyStating the relationships among the variables of interestTheorizing the nature and direction of these relationshipsExplaining how or why we expect the relationships to existOffering a schematic diagram of the model
5 Common flawsIncluding elements that are not part of the theoretical frameworkIncluding moderating variable in the hypothesisTreating moderating variable as an independent variable
6 Dependent / Independent Variables Fig. 5.1 and 5.2
15 Exxon Mobil is a well-oiled machine that is pumping profits Exxon Mobil is a well-oiled machine that is pumping profits. How does it do it? By using technology to evaluate potential deposits. It displays a 3-D computer image, IMAX style, on a 32 -foot wrap around screen. It then drills underwater. Once oil is found, Exxon Mobil (EM) pumps the oil without any significant lapse of time.Its investment in R&D is over $ 600 million per year, and it employs 15OO Ph.Ds. Unlike companies that finance both applied and basic research, EM demands work that produces a measurable impact and competitive advantage. Dissemination of findings among scientists is thus high.EM is also getting payoffs from older technologies, like increasing the recovery rate from existing deposits. For example, the so called reservoir analysis has enabled EM to boost reserves and improve recovery from fields.The merger of the two companies, Exxon and Mobil was remarkable, given their two divergent philosophies and cultures. Exxon had top efficiency born out of command and control, while Mobil was loose and informal; but the elaborate restructuring worked out well.The return on capital deployed was 21% in the year 2000, more than double the level of the past two years and the best among big oil companies.
16 Exxon-MobileWhat accounts for Exxon-Mobil’s success? (dependant variable)Three (independent) variablesUse of old and new technologiesInvestment in R&D (expecting results)Blending of two different culturesDissemination of informationIntervening variableDiagram the theoretical framework
17 Expectation of Results Blending two different Exxon - MobilUse of New & OldTechnologyInvestment in R&D withExpectation of ResultsDisseminationof InformationSuccess ofEM ($$$)Blending two differentculturesIndependent VariablesIntervening VariableDependant Variable
18 Once given, perks are extraordinarily hard to take away without seriously decreasing employee morale. The adverse effects of these cuts far outweigh the anticipated savings in dollars. Research has shown that when the reason behind the cuts is explained to employees, morale does not drop.Withholding PerksEmployee MoraleDependant VariableIndependent VariablesExplanation of cutsModerating Variable
19 Hypotheses (p )Statement of a relationship between two or more variables.“null” hypotheses is phrased to equal “0” (no relationship)“alternative” hypotheses is phrased to show some definitive relationship (difference)
20 Haines Company (Ex 5.9) Working Conditions Vacation Benefits Morale PayHappinessSide Income
21 Haines Company (Ex 5.12)Ho: There is no relationship between working conditions and the morale of employees.HA: If working conditions are improved, then the morale of the employees will also improve.HO: There is no relationship between vacation benefits and employees' morale.HA: Better vacation benefits will improve employees' morale.HO: There is no difference in the relationship between pay and happiness among those who have side incomes and those who do not.HA: Only those who do not have side incomes Mil become happier if their pay is increased.HO: There is no relationship between happiness and morale.HA.- Happiness and morale are positively correlated.HO: Working conditions, vacation benefits, and pay have no influence on the morale of employees.HA: Working conditions, vacation benefits, and pay all have a positive influence on morale.
22 Modeling from qualitative theory Example 5. 21, p. 109 and (fig. 5 Modeling from qualitative theory Example 5.21, p. 109 and (fig. 5.11, p. 111)