Professional Documents
Culture Documents
1
Chapter 3:
Theory Building
What is Theory?
• Theories are simply generalizations that help
understand reality in a better manner.
5
Theory Development (cont’d)
7
Theory Development (cont’d)
• Concept (or Construct): A generalized idea about a
class of objects, attributes, occurrences, or processes
that has been given a name.
– “leadership”, “productivity”, and “morale”
– “gross national product”, “risk aversion”, and “inflation”
9
Theory Development (cont’d)
EXHIBIT 3.3 Hypotheses Are the Empirical Counterparts of Propositions
10
Theory Building:
Inductive vs. Deductive Reasoning
11
Inductive vs. Deductive Reasoning (cont’d)
• Deductive Reasoning
– The logical process of deriving a conclusion about a
specific instance based on a known general premise or
something known to be true.
– Top-down approach
• Inductive Reasoning
– The logical process of establishing a general proposition on
the basis of observation of particular facts.
– Bottom-Up approach
12
Inductive vs. Deductive Reasoning (cont’d)
13
Inductive vs. Deductive Reasoning (cont’d)
Examples of Deduction:
Examples of Induction:
14
Practical Value of Theory
15
Thank You!!!