Regret Theory and Decision-Making in Retention Program Funding

180 Pages·2017·2.65 MB·English

Walden University
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Walden Dissertations and Doctoral Studies
Walden Dissertations and Doctoral Studies
Collection
2018
Regret Theory and Decision-Making in Retention
Program Funding
Eugenia Jo Johnson
Walden University
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Walden University

College of Management and Technology

This is to certify that the doctoral dissertation by

Eugenia Johnson

has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.

Review Committee
Dr. Richard Schuttler, Committee Chairperson, Management Faculty
Dr. Kathleen Barclay, Committee Member, Management Faculty
Dr. Danielle Wright-Babb, University Reviewer, Management Faculty

Chief Academic Officer
Eric Riedel, Ph.D.

Walden University
2017
Abstract
Regret Theory and Decision-Making in
Retention Program Funding

by
Eugenia Johnson

MS, East Carolina University, 2006
BS, Pembroke State University, 1986

Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Philosophy
Management

Walden University
December 2017
Abstract
Senior leaders of higher education institutions make management-related funding
decisions that meet the needs of the institution without incurring financial loss. By
classifying groups of students into strategic business units, these leaders can make
targeted fund management decisions. Researchers have demonstrated that higher
education institutions have successfully implemented student retention programs for
students in the freshman unit, but in this early adoption stage, have been unable to
establish a pattern in the sophomore unit decision-making process. This study was
designed to determine the relationship between the management decisions to allocate
funding for retention programs for students in the sophomore year in relation to the
annual cost and the anticipated increase in student retention. The design was a
quantitative correlation study, with a population of 49 senior leaders from 4-year higher
education institutions in North Carolina, most of whom held the position of provost. The
researcher developed the electronic survey instrument to measure the outcomes of this
study and the results were analyzed using both regression analysis and Bradley-Terry
pairwise analysis. The findings of this study suggest a significant relationship exists
between the decision to fund retention programs and both the cost of the programs and
the anticipated increase in student retention after program implementation. The
management decision to allocate funds for the implementation of retention programming
for students in a sophomore strategic business unit may improve the retention/graduation
rates of students, which may increase the potential earning power of the college graduates
while reducing the default rate of student loans.
Regret Theory and Decision-Making in
Retention Program Funding

by

Eugenia J. Johnson

MS, East Carolina University, 2006
BS, Pembroke State University, 1986

Proposal Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Philosophy
Management

Walden University
December 2017
Dedication
I dedicate this work to my colleagues and family who have provided me with
unceasing support throughout this 5-year journey. To Marie D. Winfree and Melody L.
Trotto, your friendship has proven priceless in all possible ways. Thank you both for your
patience and your daily support of my efforts. Lastly, this work is dedicated to the
memory of my parents, Ernest Eugene and Mary Jo Johnson.
Yes, Mom and Dad, I finally completed my college education.
Acknowledgments

Dr. Richard Schuttler is a true mentor to me. He provided the expertise to guide
me through my doctoral journey; he served as an inspiration by sharing his experiences
and constantly reminding me that I had the skills necessary to complete my degree
program. Dr. Schuttler also served as a coach, enforcing upon me the discipline necessary
to become a scholar. My thanks to you, Dr. Schuttler for believing in me even when I had
doubts about myself.
Dr. Kathleen Barclay was an invaluable source of knowledge, inspiration, and
discipline, making sure that I did not stray off the pathway of my chosen topic, as well as
helping me to adhere to proper APA format whenever I went awry. My thanks to you, Dr.
Barclay for your friendly and courteous but firm guidance.
Table of Contents
List of Tables ..................................................................................................................... vi
List of Figures ................................................................................................................... vii
Chapter 1 - Introduction to the Study ................................................................................. 1
Background of the Study ............................................................................................. 2
Problem Statement ....................................................................................................... 4
Purpose Statement ....................................................................................................... 5
Significance of the Study ............................................................................................. 6
Theoretical Framework ................................................................................................ 8
Research Questions and Hypotheses ......................................................................... 10
Nature of the Study .................................................................................................... 11
Definition of Terms ................................................................................................... 13
Assumptions .............................................................................................................. 14
Scope and Delimitations ............................................................................................ 15
Limitations ................................................................................................................. 16
Summary .................................................................................................................... 16
Chapter 2: Literature Review ............................................................................................ 18
Strategy for Searching the Literature ......................................................................... 20
Senior Leadership in Institutions of Higher Education ............................................. 22
Decision-Making in Higher Education ...................................................................... 23
Traditional Model of Decision-Making ..................................................................... 24
i
Changing Focus of Decision-Making ........................................................................ 25
Fund Management Decisions in Higher Education ................................................... 27
Student Retention in Higher Education ..................................................................... 31
Importance of Freshmen Retention ........................................................................... 34
Importance of Sophomore Retention ......................................................................... 36
Decision-Making in an Environment of Risk ............................................................ 38
Quantitative Research Design and Higher Education ............................................... 39
Correlation Research ................................................................................................. 41
Management of Funding Decisions and Social Change ............................................ 43
Gap in the Literature .................................................................................................. 45
Summary .................................................................................................................... 47
Chapter 3 – Methodology ................................................................................................. 49
Quantitative Research ................................................................................................ 50
Appropriateness of Quantitative Research ................................................................ 51
Qualitative Research .................................................................................................. 52
Inappropriateness of Qualitative Research ................................................................ 52
Correlation Research ................................................................................................. 53
Appropriateness of Correlation Research .................................................................. 53
Causality Research ..................................................................................................... 55
Inappropriateness of Causality Research ................................................................... 55
Purpose of Quantitative Research Questions ............................................................. 57
Research Questions for the Study .............................................................................. 57
ii
Purpose of Quantitative Hypotheses .......................................................................... 59
Quantitative Hypotheses for this Study ..................................................................... 59
Population .................................................................................................................. 61
Sampling Strategy ...................................................................................................... 62
Sample Size ............................................................................................................... 63
Recruitment Procedures and Informed Consent ........................................................ 64
Pilot Study .......................................................................................................... 65
Pilot Study Population ........................................................................................ 66
Pilot Study Data Collection ................................................................................ 67
Pilot Study Demographics .................................................................................. 67
Pilot Study Data Treatment ................................................................................ 68
Instrumentation .......................................................................................................... 68
Reliability and Validity .............................................................................................. 73
Threats to Validity ..................................................................................................... 74
Threats to External Validity ............................................................................... 74
Threats to Internal Validity ................................................................................ 75
Threats to Construct Validity ............................................................................. 76
Operationalization of Variables ................................................................................. 76
Data Analysis Plan ..................................................................................................... 77
Ethical Procedures ..................................................................................................... 81
Summary .................................................................................................................... 83
Chapter 4 – Results ........................................................................................................... 85
iii