COLLEGE OF BUSINESS AND ECONOMICS

Department of Management
MBA Program

Assignment on the course of Business Research Methods:

Submitted to: Meselu Alamnie (PhD)

By: Abraraw Chale Id No. : BDU 0705143PS

August, 2017
Bahir Dar

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Given Case:
Ato Thomas, the CEO Debonaire Co, is concerned about the declining employees’
performance that he has seen in the last performance appraisal. He understood that it is time
that some action has to be taken to reinvigorate the motivation of employees. He is then
considering introducing a new compensation scheme that consists of a 100% pay rise. To
approve the pay rise proposal, the board of directors inquired that they would like to get
strong evidence as to how the employees would respond to it. Ato Thomas is certain on one
thing and was able to convince the board that motivation is one important element that could
determine the performance of employees in the company and which he wants to primarily
boost through the new compensation scheme. However, he is not certain to tell the possible
consequence of the pay rise on employees’ motivation. Most of the exiting theories in this
area indicate that financial reward can only sustain the existing level of motivation but do not
guarantee improvement in motivation. Several empirical studies reveal conflicting result as to
what impact financial benefits could have on employees’ motivation. Moreover, the relative
importance of compensation compared to other factors such as job design, supervision, work
relation, working condition is unknown. Some studies have shown that all of these factors are
equally responsible for motivation while others have resulted conflicting findings. Assume
that you are working as a researcher in the research and development department of the
company and the management of the company gave you the assignment to conduct a study in
private companies in Addis Ababa and come up with empirical evidence (just in six month
time) about the impact that the new compensation scheme would bring to employees’
motivation, then;

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a. Do you suggest explorative, descriptive or explanatory study? Why?

Answer: Explanatory research seeks explanations of observed phenomena, problems, or

behaviors. While descriptive research examines the what, where, and when of a
phenomenon, explanatory research seeks answers to why and how types of questions.
Examples include understanding the reasons behind adolescent crime or gang violence,
with the goal of prescribing strategies to overcome such societal ailments. Because the
researcher in our case is expected to provide answers on the cause and effect relationship
between motivation and financial incentive, job design, etc. in his company and provide
possible solutions for the problem it is supposed to use explanatory research.

b. Do you think this study is deductive or inductive study? Why?

Answer: It is a deductive study: Because we are trying to test the theories in reality for
the purpose of company’s issue. And for this, the study process should be going from
general principles to specific statements. Then the finding or conclusion from the study
will serve as a base for decision making to the board of directors in our case.

c. Do you suggest longitudinal or cross-sectional or panel study? Why?

Answer: As both independent and dependent variables are measured at the same point in
time (using a questionnaire or interview), the study shall be cross-sectional field surveys.

d. Do you think this study should be qualitative or quantitative research? Why?

Answer: Given the qualitative nature of the case it tends to be treated with qualitative
analysis technique; however the data collected will be better to be analyzed using
quantitative method because the board of directors requires precise information on the
extent of previously stated factors (independent variables) on motivation of employees.
This needs the study of relationships between variables. Therefore, the study can result
with better outcomes if conducted quantitatively.
e. Determine whether this study is basic study or applied study? Why?

Answer: Applied Study: Because this type of research is designed to solve practical
problems, rather than to acquire knowledge. In addition, applied research aims at finding
a solution for an immediate problem facing a society or an business organization. The
research at our hand is going to be conducted to improve the organization`s condition
(low motivation). Therefore it is an Action/Applied research.

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f. Determine whether survey, experiment, observation or a combination of these is
appropriate of this study? Discuss why?
Answer: A combination of Survey study and observation is advised to gather data in
this situation. A selected employees` orientation about factors affecting their motivation
can be gathered through surveys and other factors like job design and work relation could
be also observed by the researcher in person.

g. Which of philosophical perspectives of research do you assume for this study? Why?

Answer: I believe the philosophical orientation of this study is going to be ontological.

The reason is that the researcher is there to fill the quest of board of directors to know the
reality about whether employees’ motivation is determined by compensation only.

h. Write the problem statement?

Answer: Employee motivation is declining and that is detected (symptom) by low
performance observed.

i. Identify variables (both dependent and independent variables. Determine the

dimensions to be used if the analysis is at construct level.
Answer:
 The Dependant Variable is Employee Motivation (multidimensional: job
performance, organization belongingness, innovative)
 The Independent variables are compensation scheme(multi-dimensional-financial,
non- financial etc ), Working conditions(multidimensional- neatness, utility,
safety, working material ), Job design (multidimensional- job requirement, job
rotation, enrichment, enlargement etc), Supervision (uni-dimensional- leadership
style, communication system) and Work relationship (multidimensional- social
support, friendship, social gathering etc )

j. Identify the hypotheses or research questions?

Answer:
 Is there any causal relationship between Compensation scheme, job design,
supervision, work relation and working condition and motivation of employees?
 To what extent those variables affect motivation keeping other things constant.

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k. Suggest a conceptual framework to be used in this study?

Motivation of employees is affected by Compensation scheme, job design, supervision,

and work relation and working condition.

Work R/p

Working
Job Design
Condition

Employee
Motivation

Compensatin
Supervision
Scheme

l. Determine the appropriate scale of measurement for each of the variables or dimensions
of construct?
Working
Variables Compensation Job Design Work r/p Condition Supervision
Scale Ratio Nominal Ordinal Ordinal Nominal

m. Determine the appropriate source of data and collection instruments, suggest the type of
questionnaire you think is appropriate to address the variables/constructs (if you think
questionnaire is appropriate)

Answer: Primary and secondary data can be used as a source of data. A Interview with
employees, structured questionnaire, and observation data collection methods can serve to
obtain primary data. A structured questionnaire with 5 likert scale is appropriate as we are

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 going to measure employees’ attitude toward factors/variables related with motivation.
However, an open ended questions need to be included in case there are other factors
other than the said variables and expression with other level.

n. Determine whom you would ask these questions to or which official document you would
consult. Describe how would you administer questionnaires?

Answer: The questionnaires are to be conducted with employees and their immediate
supervisors. Of the documents, salary, compensation scheme of the respective company,
regulation on company-to-employee and employee-to- employee relationship, reports
related with events that incorporate employees, etc could be sourced for the study.
Furthermore, the questionnaire will be effective if I myself administer it.

o. Is sampling necessary? If so, what sampling technique would you use?

Answer: Off course! Sampling is important. Even though I don’t know the type of
Debonair Company is, I believe it is functioning within a limited area of business. I
further believed that there are companies that have employees working relatively same
responsibilities as of Debonair`s do. Therefore, a non probability judgemental sampling is
favourable sampling in this case.
p. Suggest data analysis techniques appropriate to this study considering your variables and
scale of measurement?

Answer: The analysis technique is, I believe, supposed to quantitative of which

descriptive analysis is better among others. This is mainly because the researcher is
expected to study/ analyze how employees are different to each variable given above
through statistical measurement (like using standard deviation).