Assignment on Scenario Employee Satisfaction

a)      The following calculations are presented to support or reject the company’s owner’s prediction about employee satisfaction.

Hypothesis:

H₀: Employees are satisfied with the company.

H₁: Employees are not satisfied with the company.

Determine significance α =?

α =?

α = 0.05

α = 0.05 * 100

α = 5% 

Critical Value for Chi-square

Using this df= 3 and α = 0.05 critical value in chi-square table:

Statistic Test Value: Formula for statistic test value:

By using the following formula expected and observed results are compared:

Now considering the predicted value of 75% satisfied employees:

If 75% are satisfied and remaining 25% = Dissatisfied then

  Explanation and Justification of Scenario Employee Satisfaction

In accordance with the calculations and chi-square testing, the above prediction of the owner can be accepted as the right prediction about employee satisfaction. Comparative analysis of expected outcomes and observed outcomes, has limited variance. Moreover, critical value and significance value are calculated which will provide justification for the acceptance of the hypothesis (supporting the owner’s prediction about employee satisfaction).   

The calculated value of 5.124 is not exceeding the critical value of significance 7.82. Thus based on this, we can say that employee satisfaction is increased by 75% in the company, and the hypothesis of increased satisfaction is accepted.  

Business Scenario

Introduction of Scenario Employee Satisfaction

According to the research study conducted by Kulas, Mcinerney, Demuth, and Jadwinski in 2007, low chi-square results, then the critical or mediated value, indicates the significance of the hypothesis. Researchers claim that the lower value of the chi-square test projects a relatively better match of the implied matrix of co-variance to the actual matrix of co-variance. In this research study, employee satisfaction related predictors are analyzed by the use of chi-square tests, which indicate that selection for the chi-square test as a statistical measure was appropriate   (KULAS, MCINNERNEY, DEMUTH, & JADWINSKI, 2007).

Bank of Muscat Using Chi-Square

The management of the Bank of Muscat utilizes the chi-square table to find the p-value and to test the hypothesis created by the management of the bank. For instance, when the bank wants to evaluate its CSR activities, it uses Chi-square to know whether the resources affecting its CSR activities. Usually, Chi-square is utilized when the bank is performing research to find out the reasons which are impacting its operations. The key benefit of Chi-square is that its calculations are not complex and the bank can easily compute the chi-square in less amount of time. Although Chi-square is calculations are not tough, but it requirements for sample size are some of the major drawbacks of the approach (Sangeetha & Pria, 2012).

Conclusion of Scenario Employee Satisfaction

It is concluded that Comparative analysis of expected outcomes and observed outcomes, has limited variance. Moreover, critical value and significance value are calculated which will provide justification for the acceptance of the hypothesis. The management of the Bank of Muscat utilizes the chi-square table to find the p-value and to test the hypothesis created by the management of the bank.

References of Scenario Employee Satisfaction

KULAS, J. T., MCINNERNEY, J. E., DEMUTH, R. F., & JADWINSKI, V. (2007). Employee Satisfaction and Theft: Testing Climate Perceptions as a Mediator. The Journal of Psychology, 141(4), 389-402.

Sangeetha, K., & Pria, S. (2012). Resources Affecting Banks’ CSR in Sultanate of Oman: A Stakeholders’ Perspective. Electronic Journal of Business Ethics and Organization Studies, 17(1), 31-40.