We have thus far discussed single-stage cluster sampling, which involves the division of the population into convenient clusters, randomly choosing the required number of clusters as sample subjects and investigating all the elements in each of the randomly chosen clusters. Cluster sampling can also be done in several stages and is then known as multistage cluster sampling. For instance if we were to do a national survey of the average monthly bank deposits, cluster sampling would first be used to select the urban, semi urban and rural geographical locations for study.

At the next stage, particular areas in each of these locations would be chosen. At the third stage banks within each area would bee chosen. In other words multistage cluster sampling involves a probability sample of the secondary sampling units is then drawn, a third level of probability sampling is done from each of these secondary units and so on Until we have reached the final stage of breakdown for the sample units when we will sample every member in those units.

For some reason cluster sampling techniques is not very common in organizational research. Hence cluster sampling though less costly, does not offer much efficiency in terms of precision or confidence in the results.

At the next stage, particular areas in each of these locations would be chosen. At the third stage banks within each area would bee chosen. In other words multistage cluster sampling involves a probability sample of the secondary sampling units is then drawn, a third level of probability sampling is done from each of these secondary units and so on Until we have reached the final stage of breakdown for the sample units when we will sample every member in those units.

For some reason cluster sampling techniques is not very common in organizational research. Hence cluster sampling though less costly, does not offer much efficiency in terms of precision or confidence in the results.