2. LEARNING OUTCOMES After studying this chapter, you should
Define the meaning of theory
Understand the goals of theory
Understand the terms concepts, propositions, variables, and hypotheses
Discuss how theories are developed
Understand the scientific method
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3. What is a Theory? Theory Goals of Theory
A formal, logical explanation of some events that includes predictions or how things relate to one another.
Goals of Theory
Understanding
Predicting
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4. Research Concepts Concept (or construct)
A generalized idea about a class of objects, attributes, occurrences or process that has been given a name.
Examples:
leadership
morale
gross domestic product
assets
customer satisfaction
market share
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5. Ladder of Abstraction Ladder of Abstraction Abstract Level
Organization of concepts in sequence from the most concrete and individual to the most general.
Abstract Level
The level of knowledge expressing a concept that exists only as an idea or a quality apart from an object.
Empirical Level
The level of knowledge that is verifiable by experience or observation.
Latent Construct
A concept that is not directly observable or measurable, but can be estimated through proxy measures.
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6. EXHIBIT 3.1 A Ladder of Abstraction for Concepts
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7. EXHIBIT 3.2 Concepts are Abstractions of Reality
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8. Research Propositions and Hypotheses
Statements explaining the logical linkage among certain concepts by asserting a universal connection between concepts.
Example: Treating employees better will make them more loyal employees.
Hypothesis
Formal statement of an unproven proposition that is empirically testable.
Example: Giving employees one Friday off each month will result in lower employee turnover.
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9. Empirical Testing Empirical Testing Variables Operationalizing
Examining a research hypothesis against reality using data.
Variables
Anything that may assume different numerical values.
The empirical assessment of a concept.
Operationalizing
The process of identifying the actual measurement scales to asses the variables of interest.
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10. EXHIBIT 3.3 Hypotheses Are the Empirical Counterparts of Propositions
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11. EXHIBIT 3.4 A Basic Theory Explaining Voluntary Job Turnover
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12. Theory Building Deductive Reasoning Inductive Reasoning
The logical process of deriving a conclusion about a specific instance based on a known general premise or something known to be true.
Inductive Reasoning
The logical process of establishing a general proposition on the basis of observation of particular facts.
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13. The Scientific Method Scientific Method Suggested steps:
A set of prescribed procedures for establishing and connecting theoretical statements about events, for analyzing empirical evidence, and for predicting events yet unknown.
Techniques or procedures used to analyze empirical evidence in an attempt to confirm or disprove prior conceptions.
Suggested steps:
Assess relevant existing knowledge of phenomenon
Formulate concepts and propositions
State hypotheses
Design research to test the hypotheses
Acquire empirical data
Analyze and evaluate data
Propose an explanation of the phenomenon and state new problems raised by the research
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