Data Analysis In Business

Lecture 3
 Operational Definition
• Definition: Definition of a construct in measurable
terms by reducing it from its level of abstraction
through the delineation of its dimensions and
elements
• Key Terms:
1. Construct: It is an image or idea specifically
invented for a given research and/ or theory-
building purpose. Examples are, motivation,
intelligence etc.
 Operational Definition
2. Abstraction: An idea which is not concrete
3. Delineation: Shown by drawing or description
4. Dimensions: Extent or scope in particular aspect
5. Elements: Contributing factor
 What is Operationalizing?
• Operationalizing, or operationally defining, a
concept render it measurable, is done by
looking at behavioral dimension, facts on
properties denoted by the concept.
• These are then translated into observable and
measurable elements so as to develop an
index of measurement of concepts.
 Why Operationalizing?
• Not all variables are easily measured.
• Objective concepts like weight, height, blood
pressure etc. can be measured relatively
easily.
• Subjective concepts like sportsmanship,
aggressiveness, love, etc. cannot be easily
measured and that’s where we need
operationalising.
 Steps Involved in Operationalizing
• Identify the concept, we hope to measure e.g.
intelligence, workload.
• Identify the dimensions of the concepts.
• Measuring these dimensions.
 Operationalizing The Concept Of “Learning”

• We need to break down the concepts of

learning.
• The dimensions of learning may be:
1. Understanding
2. Retention
3. Application
 Breaking Dimensions Into Elements
• Understanding is still an abstract concept
and needs to be broken up into the
following elements.
1. Answer questions correctly.
2. Give appropriate examples.
 Breaking Dimensions Into Elements
• Retention can have the following elements:
• Recall material after some lapse of time
• Solve problems by applying concepts
understands & recalls.
• Integrates with other relevant material.
Operationalization of the
Concept:
“ Achievement Motivation”
 DIMENSIONS
ACHIEVEMENT
MOTIVATION

SEEKING
UNABLE TO MODERATE
RELAX CHALLENGES

DRIVEN BY SEEKS
IMPATIENCE
WORK WITH FEEDBACK
INEFFECTIVENESS
Characteristics/Dimension
Driven by work
Find it difficult to relax
Prefer to work alone
Engage in challenging but not too challenging jobs
Seeks feed back
Elements of Dimension 1

Driven by work

Constantly working Persevering despite setbacks

Very reluctant to take time off for anything

Elements of Dimension 2

Unable to relax

Thinks of work Does not have

even at home any hobbies
Elements of Dimension 3

Impatience with
ineffectiveness

Swears under one’s Does not like to

Breath when even small Work with slow or
Mistake occur Inefficient people
 Elements of Dimension 4

Seeks moderate challenge

Opts to do challenging Opts to take moderate

rather than Rather than
a routine job overwhelming
challenges
Elements of Dimension 5

Seeks feedback

Asks for feedback

Never asks for
On how the
Feedback from anyone
Jobs has been
At any time
done
Operationalization of the
Concept:
“Stress”
 DIMENSIONS

Stress

Physical Tension Mental Tension

Emotional Or
Psychological
Tension
 Characteristics/Dimension
Physical tension
Emotional or psychological tension
Mental tension
Elements of Dimension 1

Physical Tension

Blood Pressure Pulse Rate

Elements of Dimension 2

Emotional or psychological tension

Fear
Nervousness

Anxiety
 Elements of Dimension 2
• These can be measured by:
1. Extent to sleeplessness
2. Sweating
3. Stomach upsets
 Elements of Dimension 3

Mental Tension

Headaches Fatigue Confusion Making

Unusual
Number of
Mistakes
 What An Operational Definition Is Not?

• An operational definition doesn’t describe the

correlates of the concepts.
• Defining a concept does not consist of delineating
the reasons, antecedents, consequences, or
correlates of the concept. Rather it describes its
observable characteristics in order to be able to
measure the concepts.
 EXAMPLE

• Success in performance cannot be a dimension of

achievement motivation. Performance and success
are result of achievement motivation. A person
with high motivation might have failed for some
reason.
• Thus our variable of interest is the theme of the
concept
 MEASUREMENT

• Measurement is a procedure for assigning symbols,

letters, or numbers to empirical properties of
variables according to rules
• Rules for assigning labels to properties of variables
are the most important component of
measurement, because poor rules can make the
outcome meaningless.
 MEASUREMENT

• There are different levels of measurement. These

levels differ as to how closely they approach the
structure of the number system we use.
• The level of measurement determines the type of
statistical analysis that can be conducted, and,
therefore, the type of conclusions that can be
drawn from the research.
 Measurement Problems

• Misplaced belief in precision: It is not usually

necessary, for example, to measure annual income
in dollars and cents.
• Go against social conventions: It is often easier to
ask people to check of categories than to supply
specific information,
 Measurement Problems

• When the operational definition does not

correspond to the conceptual definition.
• When the researcher becomes addicted to certain
statistics, and gathers only data measured at the
level appropriate for those statistical formulas.
 SCALES

 A scale is a tool or mechanism by which individuals are

distinguished as to how they differ from one another on
the variable of interest to our study.
 Types Of Scales:
1. NOMINAL SCALES
2. ORDINAL SCALES
3. INTERVAL SCALES
4. RATIO SCALES
 NOMINAL SCALES
• A nominal scale is one that allows the
researcher to assign subjects to certain
categories or groups.
• Nominal scale is one that gives some basic,
categories, gross information.
 EXAMPLE
• With respect to the variable of gender,
respondents can be grouped into two
categories, male & female. These two groups
can be assigned code # 1 & 2. these numbers
serves as simple & convenient labels with no
intrinsic value.
 ORDINAL SCALES
• It denote differences among the various categories.
• It also rank full way with any variable for which the
categories are to be ordered according some
preferences, the ordinal scale would be used.
• EXAMPLE:
The preference would be ranked (e.g. from best to
worst, first to last) & numbered 1, 2 & so on.
 Interval scale
• An interval scale of measurement classifies
observations into categories that are not only
mutually exclusive and exhaustive, and have
some explicit relationship among them, but
the relationship between the categories is
known and exact. 
 Interval scale
 The intervals between categories are equal, but they
originate from some arbitrary origin. That is, there is no
meaningful zero point on an interval scale.
 EXAMPLE:
In the interval level, a common and constant unit of
measurement has been established between the
categories. For example, the commonly used measures of
temperature are interval level scales. We know that a
temperature of 75 degrees is one degree warmer than a
temperature of 74 degrees, just as a temperature of 42
degrees is one degree warmer than a temperature of 41
degrees.
 Ratio scale
• The ratio scale of measurement is the same as the
interval level, with the addition of a meaningful
zero point. There is a meaningful and non-arbitrary
zero point from which the equal intervals between
categories originate.
• EXAMPLE:
Weight, area, speed, and velocity are measured on
a ratio level scale.  In public policy and
administration, budgets and the number of
program participants are measured on ratio scales.
 Measurement of Variables

• Variables measured at a higher level can always be

converted to a lower level, but not vice versa.  For
example, observations of actual age (ratio scale)
can be converted to categories of older and
younger (ordinal scale), but age measured as simply
older or younger cannot be converted to measures
of actual age.
 Use of nominal scales
• Obtaining personal data such as gender or department
in which one works, where grouping of individuals or
objects is useful.
• Gender
1. Male
2. Female
• Department
1. Production
2. Sales etc.
 Ordinal scale
• Rank the preferences or usage various brands
of a product.
• Example: We rank cities listed below in order
that you consider suitable for opening a new
plant. The city considered the most suitable
will be ranked 1st & the next 2 & so on.
 Use of Interval scale
• When responses to various items that measure a variable
can be tapped as a five point scale also called as a Likert
Scale.

Strongly disagree Neither agree Strongly

disagree agree nor agree
disagree

1 2 3 4 5
 Use of ratio scale

• When exact numbers on objective factors are called

for, as in the following questions:
• How many other organizations you work before
appointed to this organization?
• Number of children you have?
• How many retail outlets do you operate?
 Review of scales
• the four types of scales that can measure
variables are nominal, ordinal, interval & ratio
scales.
• Nominal scales highlight the differences by
classifying objects or persons.
 Ordinal & Interval scales
• Ordinal scale provides some additional
information by rank ordering.
• The interval scale not only ranks, but also
provide with information on the magnitude of
the differences in the variable.
 Ratio Scale The Most Powerful Among All Scales

• The ratio scale indicates not only the

magnitude of the differences but also their
proportion.
• Move from nominal to the ratio scale, we
obtain progressively increasing precision in
quantifying the data and greater flexibility in
using more powerful statistical tests.
Statistical Tests Suitable for Different scale Variables

Scales Measures of Measures of Some Tests of

Central Tendency Dispersion Significance
Nominal Mode - X2

Ordinal Median Semi-interquartile Rank Order

Range Correlation

Interval Arithmetic Mean Standard Deviation, T- test, F- test

Variance,
Coefficient of
Variance
Ratio Arithmetic or Standard Deviation, T- test, F- test
Geometric Mean Variance,
Coefficient of
Variance
 Scaling For Various Cultures
• Different cultures have different reaction to
issues of scaling
• Thus in developing instruments for cross , one
should be careful about both operational
definition & scaling methods.
 SCALING

Definition: It is the method of assigning numbers or

symbols to determine attitudinal responses of subjects
toward objects, events, or persons.
TYPES OF SCALING:
RATING SCALES: Scale with several responses categories
that evaluate an object on scale
RANKING SCALES: Scale used to tap preferences between
two or among more objects or items
 TYPES OF RATING SCALES/ATTITUDINAL SCALES

• Dichotomous scale
• Category scale
• Likert scale
• Numerical scales
• Semantic Differential scales
• Itemizing rating scale
• Fix or constant sum rating scale
• Staple scale
• Graphic rating scale
• Consensus scale
 RANKING SCALES
• Comparative Scale
• Paired comparison scale
• Forced choice scale
 Goodness of Measures

• It attests to the reliability and validity of measures

Goodness of measures:
1. Reliability: Attests to the consistency and stability of the
measuring instrument.
2. Validity: Evidence that the instrument, technique or
process used to measure a concept does indeed measure
the intended concept.