Research Questions
Discuss about the Impact Of Hr Practices On The Retention Of Employees – Evidence From Food And Beverage Industry.
Employee turnover is an issue for three major reasons that include cost implications, difficulty in controlling the attrition rate and managing overall business performances (Ahammad et al. 2016). Replacing experienced workers with inexperienced one can be expensive as it required advertisement cost, recruitment cost and training cost. Anvari, JianFu and Chermahini (2014) more over depicted that there are many reasons that are responsible for driving employee turnover that includes poor working environment and inter-employee relations. Moreover, Ahmad and Rainyee (2014) highlighted the fact that depressed work environment and culture leads to less productive employees that put the company in a stage the company cannot compete with other efficient organizations. According to the Forbes research, it is highlighted that employee turnover is nothing but a leadership problem (Forbes 2018). The leaders that are the managers in an organization need to evaluate the existing problem in the organization and then try to find effective solution so that employee can be motivated to work in the organization for a longer time.
In case of food and beverage industry, it is found that it is one of the economy’s largest creators of seasonal jobs and many young generation people opted for this industry to gain job experience or to earn some money to fulfill their current needs and demands (Das and Baruah 2013). This is the main reason that the employees of the same industry leave the organization after a certain time. This research will highlight the case of the food and beverage industry of UAE and aims to find out the major reason due to which they leave the organizations. The reason that will be highlight will used for developing effective HR practices so that employee attrition rates can be diminished.
- What are the topmost five reasons of the employee turnover in Casual dining restaurants in Qatar Market?
- What is the impact of HR practices on employee retention in the Food and Beverage Industry in Qatar Market?
- What are the best HR practices in Casual dining restaurants for employee retention in Qatar Market?
- To find topmost five reasons of the employee turnover in Casual dining restaurants in Qatar Market
- To identify the balance between retention of the employee and organizational profitability in Food and Beverage Industry
- To investigate about the best HR practices in Casual dining restaurants for employee retention in Qatar Market
The literature review that is previously identified highlighted the main reasons of employee turnover in the food and beverage industry are lack of affective forces like improper job fit, poor job attitudes and negative workplace shocks. Constituent forces also play a role in driving the intention of the employee to leave the organization (Dusek et al. 2014). The constituent forces includes racial and gender discrimination, bullying co-workers and abusive nature of the supervisors. Alternative forces and job dissatisfaction are also some broad factors that create the considered problem. Thus, identifying different factors related to affective forces, constituent forces, alternative forces and job dissatisfaction helps in defining the main reason for employee turnover from the food and beverage industry and looking for effective strategies that HR can take for diminishing the attrition rate. However, the previously found literature review highlights that proper skill recognition; job flexibility effective training, developing maintaining superior-subordinate relationship and good two-way communication are some of the HR practices that ensure employee retention. Thus, the rationale behind selecting the research questions is that in the last five years the employee turnover rate in the Qatar food and beverage industry has increase and many research scholars has found the main reasons are job satisfaction, age, job responsibility and education. However, there are other factors also that may impact the turnover in this industry and thus, the first question is developed for finding the topmost five reasons for which the employee leave the organization. The main rationale behind selecting the second question is to find whether or not the organization profitability is associated with the employee turnover which is selected for giving the evidence that the HR should take care of attrition rate as their job role is also to enhance the organizational profitability. The main reason for developing the third question is to address the research topic which is impact of the HR practices on the employee turnover.
Research Hypothesis
H0: There is no significant impact of the HR practices on the retention of the employees
H1: There is significant impact of the HR practices on the retention of the employees
In order to accomplish this research, I have faced nonesuch issues in the research. My environment is very co-operative and I have selected a topic, which is interesting and challenging. Impact of HR practices is important but there are many research on this topic based on retail industry or any other organization but I have selected the food and beverage industry as employee needs more motivation to work under an environment in which the job roles changed based on the customer demands. The decisions for the research methodology purpose, design are selected considering the pros and cons and applicability for this research. Since, the research demands for targeting food and beverage industry’s employees, the places are selected which is easily accessible to me.
In this research, only the primary data collection has been considered which shows that only the perception of the employee on the employee turnover has been considered. The sample size of the research selected is only those, who have left their job and hence the unexplored situation in the research is the perception and tendencies of leaving the job. This research does not consider any secondary research and hence the findings from the primary research will not be cross checked from the information found from the secondary research. Another gap of this research is that it is based only on Qatar food and beverage industry and hence cannot be implied on the any other industry of other region.
The academic literatures for this research are selected based on their focus area which is employee turnover, organization profitability and practices for retaining employees. These articles are selected for identifying the factors that generate the risk of employee turnover, retaining the employees in an organization and selecting appropriate survey questions for this research study. Since, the factors and the survey questions designed for this study is based on the pre-tested articles and researches, the research outcome in this study is reliable. Some of the articles chosen are not related to the employee turnover factors from food and beverage industry and thus research articles based on some other industries are also selected in the research. However, all of these articles refer to the main research variables and the relevance of these factors can be later evaluated through the outcome of the research survey. Thus, it can be said that the factors based on which the search survey is designed refers to the practical relevance of this management research.
Research Environment and Demographics
Hancock et al. (2013) is identified employee turnover as departure of an employee from an organization. Long, Perumal and Ajagbe (2012) also stated that employee turnover illustrates the state of movement of the employee from the boundary of the organization. It is also identified by the author that the interest of the employee to retain in an organization is based on their psychology and sociology and the companies also have to adhere their business literatures for promoting a healthy working environment. In recent times, companies emphasized more on the advanced training needs and increased wages to the skilled employees rather than replacing low-skill, inexpensive workers and easily trainable (Hancock et al. 2013). Mahal (2012) on the other hand stated that HR’s role is to foster the employee’s engagement unless which the working personnel from the organization will not retain for longer time. It is also identified that if the HR values their job responsibility in an efficient manner, employee commitment towards the working industry can be enhanced. Two factors that are “perceived ease of movement” and “perceived desirability of movement” is developed by Long, Perumal and Ajagbe (2012) that defines the reason for employee turnover. “Perceived ease of movement” illustrates the influenced incident or situation in which the employee searches for job alternatives or opportunities and the term “perceived desirability of movement” demonstrate the situation that determines the job satisfaction.
Long, Perumal and Ajagbe (2012) depicted that some of the crucial HRM practices that can increase the risk of employee turnover are shrinking pool of entry-level workers, recruitment of part time workers, difference among the individuals, competitiveness and productivity and lack of skill development. Another aspects that is highlighted in this case is that employees nowadays are more aware of the organizational legal policies and obligation and hence they are able to negotiate certain terms, which on being unfulfilled resulting in employee dissatisfaction and then their attrition (Holtom, Burton and Crossley 2012). In the era of nuclear family, employees are also become more responsible towards their family members and know the importance of work life balance concept. Thus, the HR in an organization have to provide facility like day care, parental leave, mediclaim, job sharing, flexible timing, re-training and job rotation based on their performance and adherence to the organizational goals and objectives. Thus, the effective HR practices are:
Gmelch (2016) also depicted that each group require a different communication style and it is the responsibility of the leaders to adopt the required leadership style based on the workplace environment. The leaders should also adopt both verbal and non-verbal communication in which apart from sharing positive and negative concerns, the leaders should make effective facial expressions, body posture, eye movements and use of hand motions (Boies, Fiset and Gill (2015). Gmelch (2016) furthermore portraits that the leader’s communication style should be mould depending on the audience. Another effective strategy that the effective leaders adopt is to listen to all the concerns of the team members and often discuss the probable solutions in meetings and formal gatherings including all the team members. This approach enhances the transparency and enhances the sense of trust and avoids conflicts.
Literature Gap
Shimanuki (2015) stated that employees often feel de-motivated when they need to explain their concern to every hierarchical managerial people. In order to avoid these problems, leaders in an organization must adopt a de-centralized organizational structure, where the employee can directly share their experience with the actually entitled person. Gould-Williams (2016) also depicted that the advantage of de-centralized organizational structure is that the employees can be empowered and diminish some hierarchy of managers from additional work responsibility. HR should have to ensure that all the working personnel are happy in the working environment so that they can be retained in the organization for longer time. De-centralized decision making also helps the employee to raise the feeling that they are also an important asset for the organization.
The employee faces several career needs in various stages of their career and hence the development provided to them during their job represents high chances of career retention. Davis et al. (2018) highlight that the higher gap between the career development programs and career needs the greater is the turnover intentions and job dissatisfaction. Another survey carried out by Shader et al. (2001) revealed that putting people in the right job is necessary as it is helpful in reducing the stress from the employees resulting in greater job satisfaction.
Abdullah et al (2012) stated that training ensure competencies and develop skills that will help them to fulfill the organizational objectives and goals. It is also found that constant training and development leads to the high level of performance and organizational engagement. In hospitality industry also training plays a crucial role as in order to retain the customer’s interest this sector implement regular changes for boosting their innovation. Thus, it is require to train the employee so that they can perform their best in accomplishing the business need of the organization.
Hancock et al. (2013) found that total number of employee turnover rates which includes voluntary and involuntary rates directly leads to productivity of an organization, financial performance of an organization, customer service outcomes and proper safety and quality outcomes. The factors that define the organizational productivity in this case are sales of the company, inefficiency of the productivity and poor utilization of the financial resources. ON the other hand, Cloutier et al. (2015) found that the financial performance, shareholder return and market performance are the aspects that define financial progress for a company. However, the level of the customer satisfaction, service quality provided to them and the waiting times are the aspects that is used to measure the customer outcomes and the safety and quality outcomes also resembles to accidents rates, loss of productive time and higher waste products. It is also found that satisfied employees are more likely to understand the organizational requirements and they perform the work with greater efficiency. It is also the case that these employees serve extra effort not only for attaining greater benefits by over-achieving the target but also leads in greater productivity for the organization. The research conducted by Hancock et al. (2013) also represents that there is a difference between relationship between organizational performance and employee turnover based on the industry and the level of the knowledge and skill requirements present in the industry. It is also found that where the labor cost is higher and liberal market economy, the relationship between organizational performance and employee turnover is negative (Das and Baruah 2013).
Academic Relevance
Medina (2012) identified that the job satisfaction plays a crucial role in retaining the employees in an organization. Job satisfaction also relates with the workplace culture and the more interactive the working environment is the employee will be more satisfied working for an organization. Thus, the organization need to implement an interactive, innovative and fostering the talent of the employee in order to retain the employees more.
Das and Baruah (2013) stated that based on the experience of the working personnel and the time they spent as an employees is the main factor of retaining in an organization. It is found in the research conducted by Medina (2012) that young adults that belong to age group of 18 to 35 years are more likely to leave the organization when compared with the intention of matured adults belong to the age group of 36 to 88 years old. Thus, it can be said that job satisfaction is more predictive of turnover intention. Anvari, JianFu and Chermahini (2014) also stated that based on the number of years given for a job, the employee attraction rate also matters which means that a person, who is working in an organization for 7 years is less likely to leave the organization compares to the employee, who have only 5 years of experience.
Arokiasamy (2013) highlighted that the kind of job provided to the employee is also an important factor that drive the intention of the employee for leaving the organization. It is found that if an employee understands their roles and responsibility and the procedure through which they can attain the organizational goals more effectively, they will intend to associate with the organization for longer time. Moreover, Cho and Lewis (2012) stated that these employees are also more likely to take risk in the working environment and develop their innovative idea.
The greater education level attained by an employee refers to lesser employee retention level as they can understand the organizational policy and the breaches made by the organization in the organization (Agrela et al. 2008). It is also found that people with no education are 6% more likely to retain in the organization irrespective of the culture followed in the company compared to the people having hire education. Moreover, Hancock et al. (2013) stated that the education in the working environment can also be provided through training. Thus, HR should conduct appropriate training session so that the knowledge level of the employee can be improved.
Critical Literature Review
Novikov and Novikov (2013) stated that research design is utilized for answering the formulated research questions of a research study. There are two ways of research design- descriptive and exploratory. Mary Converse RN (2012) depict that in descriptive research design, the research finding of the literature review and data analysis is used for describing the research questions. On the other hand, Collis and Hussey (2013) portrays that when a new direction is found from the finding of the research outcome based on the research outcome, the process is known as exploratory research design. In this research study, the descriptive research design will be utilized.
The research aims for finding the main reason of employee turnover in the food and beverage industry based on which suggestion for the HR will be designed that can diminish the employee attrition rate. The literature review is designed based on the factors identification of the employee turnover and the relationship of the HR practices on the employee satisfaction. Thus, the main area of the literature review covers the research questions. Moreover, the survey questions will also be based on the factors identified through the critical literature review so that the outcome of the research can be used to answer the research questions more promptly. Thus, in this case, the main motive is to address the research questions and not to find any other new direction based on the similar research topic and thus the appropriate research design technique is descriptive research technique.
The advantage of using the descriptive research design is that the participants can be observed in a natural environment. Smith (2015) stated that a descriptive research is pre-cursor to future research as it determines variables for a research that can be tested. This research design can also be applicable to both type of research that is quantitatively and qualitatively. Zikmund et al. (2013) also stated that the descriptive research leads to data rich research. On the other hand Punch (2013) argued that by stating that though descriptive research includes survey, which is used by organizations to study in beliefs, behaviors and attitudes of the target audience but in this case confidentiality can be an issue. Neuman (2013) also highlighted the negative point that the research conductor can be biased in designing the survey form in order to obtain the best possible result for the result. Moreover, the respondents will not be truthful while depicting their answers on the developed research questions.
This research will utilize the survey methods. The survey questionnaire will be designed in a way so that the research variable can be addressed which in this research study is HR practices and employee retention. A research hypothesis is also formulated in which the alternative hypothesis is “there is a significant impact of the HR practices on the retention of the employees”. The questionnaire based on these research variables will be designed on the factor that is identified through the literature review. This signifies that the factors that is identified s the main reasons for employee retention in an organization will be used to formulated research questions for the survey.
Levy and Lemeshow (2013) highlighted that there are two different ways through which the samples for a research can be selected- probability and non-probability sampling technique. Etikan, Musa and Alkassim (2016) stated that in probability sampling technique, the research respondents are provided equal opportunity to participate in the research; whereas, when the research respondents are not selected by proving equal opportunity, it is known as non- probability sampling technique. In this research technique, probability sampling technique of simple random sampling will be utilized. The major reason for selecting the probability sampling technique is that all the research respondents are selected from the food and beverage industry. Thus, selecting research respondents through simple random sampling reduces the biasness of the research.
The recruitment strategy refers to the representation of the population (Levy and Lemeshow 2013). In this research study, the research will be conducted in the Qatar market in the casual dining organization belongs to food and beverage industry. These employees are from Qatar so that they can better interpret the research question that is developed based on the food and beverage inducts of Qatar market. Since, a simple random sampling method is utilized; this research focuses on the similar rates of successful recruitment.
Bryman (2017) stated that data for a research study can be collected through two ways- primary and secondary. In primary data collection method the data are collected through direct sources like employee of any organization, managers from a particular department. Bernard, Wutich and Ryan (2016) also depict that the primary data is collected through survey, questionnaire and telephonic conversation. On the other hand, secondary data collection method is used when the data for the research is collected through secondary sources like research papers and articles, newspaper excerpts and published statistical data. In this study, the data is collected through primary sources through survey questionnaire. The questionnaire will be provided to the respondents and they will answer the questions after the event (resignation) via recall similar to exit interview style. This will help the research to access respondents for the research.
Etchegaray and Thomas (2012) stated that data is analyzed through two ways- quantitatively and qualitatively. Brannen (2017) depicted that quantitative data is used when numerical data are evaluated to obtain the research outcome; on the other hand, when theoretical data are evaluated, qualitative data analysis method is utilized.
The geographical setting that will be utilized in this research study is Qatar, UAE. Some of the Casual dining places belong to food and beverage industry will be selected like Al Egla, Fereej Abdel Aziz, Fereej Bin Mahmoud, Al Dafna and Duhail will be considered. Moreover, the organizational setting refers to contacting the employee of the food and beverage industry so that accurate reason for their intention to leave the organization can be obtained.
Levy and Lemeshow (2013) stated that population in a research also represents sample size of the research. In this research study, the response for assessing the research will be 100. In order to avoid the risk if any unfulfilled questionnaire, 120 research respondents will be given the survey questionnaire so that expected risk can be diminished. The issue that will be obtained in selecting the research respondents is that not all the employees working in the food and beverage industry can be accessible at the same time. So, it can be said that the data collection procedure might require some extra time.
The sampling strategy will be simple random sampling through which research respondent from the same industry can be selected. All the group members will collect the data in different locations. This will help the procedure of data collection to be less time consuming. The manager of the food and beverage organization in different location will be contacted first so that the availability of the employees can be attained. Then the employee will be contacted after their shift timing once they are free from their daily work responsibility.
In this research, all the research respondents will be provided with consent form in which the research topic, main aim of the research, objectives of the research and the maximum time that has to be given for the survey will be mentioned. This consent form will be duly signed from each of the research respondents. The data obtained from the research study will be protected through the legislation Data Protection Act 1998. During the research, no research respondents will be emotionally tortured or physically harassed. They will not ask to change their answer for any research questions and their genuine perception will be noted through the survey questionnaire. The data gathered will be recorder in the Excel file which will be stored in the laptop maximum of one year and will be deleted after the mentioned time span.
In this research study, the data analysis method is quantitative data analysis method as the response considered for the research question will be carried out in numerical form which is evaluated through regression analysis using Microsoft Excel. The research response will be collected in form of the numbers in which the option “Strongly agree” will be numbered as 1, “agree” will be marked as 2 and 3,4 and 5 will represent “Neutral”, “Disagree” and “Strongly Disagree” respectively. The data will be then segregated based on the research variable based on which the regression analysis will be carried out. Moreover, the pie charts and bar diagrams will be created through the function of “Pivot Table” present in the Microsoft Excel.
In this research deductive approach will be utilized. Terrell (2012) stated that in deductive approach all the research question will be addressed through the previously developed theories and models and not new model and framework is developed. This research also highlights the turnover model which is previously developed by the other research scholar. Moreover, hypothesis will be proved based on the concept highlight in the literature review that is developed and proposed by other research scholars. Firstly, the data will be collected through survey questionnaire and it will be recorded in the Excel file. Secondly, the data will be analyzed based on the selected method which is regression analysis. Once the response is collected the presentation of the graph and charts will also be included in the research paper. The data outcome from the research analysis will also be considered for nullifying the null hypothesis.
The validity of the research is proved as only the contemporary data will be considered as the data are collected from the research respondents. The reliability of the research will be highlighted through the approach that only those research respondents are selected that are directly associated with the research issues which is the main reason due to which the employee in the casual dining of the food and beverage industry intends to leave the organization.
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