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In this chapter, we are going to elaborate the facets of methodology to be used so the research objectives and purposes will be reached and that through designing, implementing and analyzing the sample obtained from an organization.
Multiple methods can be considered. In this research, the qualitative approach will be used considering the CHI - SQUARE study in addition to a small case studying the situation in the company. In this part, we will rely on the result of the interview done with the HR manager at "Librex".
Section 1: Data collection, sampling and data treatment
Data collection and overview about the organization used as sample are the two major elements employed to identify all the required details in a proper way.
1.1 Data collection
Data collection stage used in a study simply describes the way of gathering information needed to conduct a study and collect them from various ways in order to reach more specific results. Data collection is considered as a significant facet of any type of research study and any imprecise data collection can moderate the purpose of the study and ultimately guide to illogical results.
In this study, the primary date collected consists of using the quantitative approach. For this purpose, a questionnaire was created and provided in December 2012 to a specific number of employees from an organization to be completed.
After that, the primary data collected from the questionnaire will be combined with secondary data provided during the interview conducted by the HR manager in organization.
"Librex" is a company founded first in Canada in 1987 to be relocated to Zalka - Lebanon, and directed by the 4 Bechalani Brothers in 1999. The company's job consists of producing and selling a range of quality and innovative goods for household and office use (Waterex, Crystello, watercrown, Ritello).
The company aims to maintain good relationships with its customers which explain the presence of the company in more than 30 countries. Therefore, the focus of "Librex" was on its people. According to the company chairman "M. Sam Bechalani" the success of the group is related to the success of its people so the concept of "a company with the best people wins" was always followed here. Training sessions and professional conference programs were organized in order to provide the employees with the needed energy, motivation and inspiration to reach more goals and target.
Total number of employees working currently at "Librex" Lebanon is 150. In my study, the 150 employees have been asked to fill the questionnaire. We have 32 employees not responding and 14 employees provided unserious answers and incomplete.
Figure 7: Sample of the study
150 employees (100%)
150 - 32= 118
118 - 14= 104 employees
In this company, we have 150 employees (100%), 150 employees should answer the questionnaire. From 150 employees, we have 32 which didn't answer and 14 answered in an illogical way.
As a result, in my study, I will use the answers based on 104 employees.
104*100/150= 69. 33%
1.3 Methodology treatment
In this part, we will illustrate how conducting a CHI-SQUARE test for independence. By definition, the CHI-SQUARE is a test applied when you need to compare the observed data with data you anticipate to attain based on the defined hypothesis. It's used to specify if there is a significant relationship between two variables or not and what type of relationship exists.
The CHI-SQUARE test course is considered proper when the subsequent circumstances are met:
Each sample observation should independent
The total frequency should be great so Each population should be at least 10 times as great as its relevant sample.
The sampling method should be accidental sampling
If sample data are presented in a contingency table, the predictable frequency for each cell of the table should be minimum 5.
In the implementation of this method, four steps should be followed:
1- Stating the Hypothesis
2- Formulating an analysis plan
3- Evaluating sample data
4- Interpreting results
1.3.1 Stating the Hypothesis
Assume that the first Variable (Variable A) has r levels, and the second Variable (Variable B) has c levels. The null hypothesis claims that recognizing the level of the first variable does not help to predict the level of the second one. That is the variables are independent.
H0: Variable A and Variable B are independent.
Ha: Variable A and Variable B are dependent.
We can understand by the alternative hypothesis is that the level of the first variable can help you predict the level of the second one.
Note: The existence of the alternative hypothesis evokes that the variables are linked; however this link is not necessary causal
1.3.2 Formulate an Analysis Plan
This step illustrates the use of the sample date to accept of refuse the null hypothesis. The following elements should be specified by the analysis plan:
Significance level. Usually, researchers select significance levels equal to 0.01. 0.05 Or 0.10; however any value between 0 and 1 can be used.
Test method. Use the chi-square test for independence to find out if there is a significant relationship between two categorical variables or not.
1.3.3 Analyze sample data
Using sample data, find the degrees of freedom, expected frequencies, test statistic, and the P- value associated with the test statistic. The approach described in this step is shown in the sample problem at the end of this lesson.
Degree of freedom. The degrees of freedom (DF) is equal to:
DF= (r-1) * (c-1)
r = number of levels for one categorical variable
c= number of levels for the other categorical variable
Expected frequencies. The expected frequency counts are computed separately for search level of one categorical variable at each level of the other categorical variable. Computer r * c expected frequencies, according to the following formula.
E r, c= (nr * nc) / n
Er,c = the expected frequency count for level r of Variable A and level c of Variable B
nr = total number of sample observations at level r of Variable A
nc = total number of sample observations at level c of Variable B
n = the total sample size.
Test statistic. The test statistic is a chi-square random variable (X2) described by the this equation:
Or,c= observed frequency count at level r of Variable A and level c of Variable B.
Er,c= expected frequency count at level r of Variable A and level c of Variable B.
P-value. The P-value is the probability of observing sample statistic as extreme as the test statistic. Since the test statistic is a Chi-square, use the Chi-square Distribution Calculator to assess the probability associated with the test statistic. Use the degrees of freedom computed above.
1.3.4 Interpret Results
If the sample findings are unlikely, given the null hypothesis, the null hypothesis will be rejected. Typically, this involves associating the P-value to the significance level, and rejecting the null hypothesis when the P-value is less than the significance level.
1.4 Eviews Implementation:
By choosing the Chi-square tests option, EView generates statistics for analyzing the independence of the series in the group. The test statistics are built on the distance between the definite cell count and the count expected under independence.
Besides, EViews states the subsequent two test statistics for overall independence among all series in the group:
n i, j, k and i, j, k = actual and overall expected count in each cell.
Under the null hypothesis of independence, the two statistics are disseminated X2 with IJK - (I-1) - (J-1) - (K-1) - 1 degrees of freedom (I, J, K describe the number of categories for each series).
Section 2: Variables characteristics
In this section, we are going to detail the independent and dependent variables. First, the independent variables are defined as the employees' commitment, career development and goals. Second, the dependent variables are related to the changes in the organizational strategies and culture.
2.1 Dependent variables implemented at "Librex"
Due to the increased demands, advanced technology and due to the robust competition between companies that created a dynamic global business environment in order to be the first in responding to the market demands, the majority of organizations are totally aware of the necessity for change in its management, strategies and culture. Many challenges "Librex" faced and is still facing in adopting any changes inside the company. These challenges will be discussed and developed in the core of the subsequent part in addition to the plans took by the management of this company in order to overcome any threat and in order to make the employees realize, accept and follow any new strategies.
According to the human resources manager in this company, performing any change is one of the most complicated leadership challenges since the management will have to keep the following activities including set of goals, members' roles, procedures, values, communication system, attitudes and believes linked. Therefore, people responsible in designing and implementing any modification successfully should obviously understand the current situation and identify the way things are at the present. Once everything is recognized, a question should be asked: "where the company desires to go and where it aims to be?" so strategic direction can be defined. Finally, managers and superiors have an important role in spreading the concept and purpose of taking the decision in adopting any change and convince individuals to adjust their behavior to fit with the company's new culture and process. This is the hardest part.
Consequently, training managers is one of the booming steps can be taken in order to guarantee the positive result of the change process.
According to the HR manager observations, individuals' reaction over the change can be classified into 3 categories. Some people may refuse to obey to the new strategies and policies set and that because they don't have the ability and capability to be quickly acclimatized to the new situation. Others used to follow the previous strategies and have the same purposes even if they are aware of the negative results of being always in the same situation and finally the minority of people believes in the current strategy for the whole organization growth and success.
Three consequent tools can be considered in convincing individuals.
1- Leadership tools in which new vision about the future is published.
2-Management tools in which new roles are defined and new measurement and control system are specified such as promotion, incentives tools, recruiting, training, ect.
3- Power tool in which managers may use their total power in making individuals obeying to the company's new decisions and that through punishing and threatening them in case the above stated tools didn't work.
Below figure 8 (organizational tools for change mind) clarifies these steps.
Sources: by Steve Denning, RADICAL MANAGEMENT: Rethinking leadership and innovation, 07/23/2011
During a specific period, The Company has faced a high turnover rate from the different departments which cost the company a lot. According to the HR manager after observing the employees behaviors with the coordination of their managers and after conducting the exit interviews, the main reasons led to this rate in turnover are defined as follow: first, lack communication between the employees and their managers. Communication is very important and is one of the most important factors that make an employee feel comfortable, motivated and feel as part of the business success. However, this weak communication had a negative influence on the employees work as some of them didn't have a clear understand on their job description, what that they have do and what they should done in the future in addition to the uncomfortable work atmosphere.
The second reason is that the employee results and achievements weren't clearly evaluated and appreciated. Evaluating employees in very important and that for many reasons; managers and employees will be able to identify the current situation, draw future plans, and identify the reward decisions such as promotion, pay increase bonus and others. Evaluating the employees and listen to them will reinforce the employee loyalty and commitment to the work and company.
Another reason is that the employees don't feel that they were paid fairly based on their job and performance. Finally, building their career inside the company is difficult as the majority of them believe that they were not in the right place.
All these above reasons and many others affect some employees' attendance, work results, relationship with others which led to leave the company in a voluntary and involuntary way.
According to the chairman Mr.Sam Bechalani, "the focus of Librex Group is on people" as in his opinion the success of the whole business is related to its individuals efforts. Many corrective actions were taken in order to increase the employee satisfaction and commitment and reduce the obvious turnover rate.
The company with the coordination of the HR department encouraged managers to follow the employee performance evaluation process. For this purpose, many conference sessions were conducting in order to show and prove the importance of taking this action as part of their duties seriously. Employees' appraisal process is now conducted by some managers. In some department, this process is performed quarterly and in others departments it's carried out twice per year. However, some departments didn't took this process seriously and considered it as waste of time so evaluating their individuals is conducted once per year as a quick meeting.
Due to this, what managers are expecting from their employees is to make better sales, achieve the defined goals and targets each period of time, employees are having now more focus on the whole organization goals and not responding only to their individual aims.
Furthermore, financial needs are one of the main purposes of the employee to produce and as much as they have more financial revenues, their effort and enthusiasm will increase. For this purpose, the salary raise policy is applied yearly in the company. As after conducted an evaluation process, each employee will have additional percentage on his/her current salary based on his/her overall all performance and results presented during this year. So this is very important to conduct a clear and correct performance appraisal process in order to provide each employee his/her right fairly.
Moreover, the company relied on the financial temptations in order to attract new and good candidates to be part of its business. So it mentioned on its website its employee's efforts and work are rewarded with cash in addition to lots of recognitions.
Adding to the financial rewards and in order to inspire the employees to do the best, the company planned to appreciate this effort by providing some prizes, offering trips and paid vacations to its distributors and representatives.
Another corrective action took consisted of making people drawing their own goals, objectives and targets that fit with their individuals' purposes and the company interest in the same time. The employees are given the opportunity to be the own boss, work for themselves and master their own activities. Making people not only aiming to purchase products and services to sell them again but also providing them with the responsibility of designing successful programs and plans to work on it. In addition, employees benefit from flexible working hours so they decide when they want to work. This strategy pushes the employees to be more responsible and loyal.
All the above strategies took into consideration by the company's management make the company gain the majority of its employees trust and commitment. Trust and transparency are two major aspects that lead to the employee satisfaction, motivation and affect productivity and retention. Once trust is lost, unethical behavior will occur and the company will start losing the capable members treated unfairly searching for new opportunity and better benefits.
In brief, the main factors for any business include the good communication between employees and managers, sharing the employees in the decision making problem solving and goal settings, taking care of the employees career development and assisting in making their career path inside the company clear, providing the employees with the opportunity to understand very well the values and culture, letting them aware of the importance of respecting these values and the importance of respecting any decisions of change took by the management so they can directly accept and follow any new strategy for the best of the company's success and continuity in addition to treating them fairly and give them what they deserve financially and morally. Training the employees and managers is very important so all the above points can be easily understood shared and followed in addition to enhancing each part skills and ability for more growth and advancement.
Any company should not only have a purpose of selling and generating profits however it should be also a space selling skills that includes interpersonal, motivational and organizational skills. These will create transparency, trust, and commitment. In addition, it reduces the turnover rate and unethical behaviors inside the company.