research methods ch 1

8/12/2019 Research Methods Ch 1

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RESEARCH METHODS FOR BUSINESS

Written by

UMA SEKARAN



Why do we make research

We make research because we want to know more aboutourself and the world around us.

The basic purpose of research in every discipline is to teachstudents to work systematically and for them to learncritically to analyse issues before acting upon them.However, research is essential for understanding even basiceveryday phenomena that need to be handled by individualsand organizations.

e.g If you want to buy a car, how do you make a research?

Which car satisfies our needsCompare prices at different dealersCan we purchase car from second hand market so on....



WHAT IS RESEARCH ?

Research is a process, which consists upon:

Problem identification

Searching of factors involved in problem

Determination of relationship among the factorsSolution of the problem

In simple words we can say that research is an organized

inquiry that is carried out to provide information for solution

of the problem.

Research is the process of finding solutions to a

problem after a thorough study and analysis of the

situational factors.



BUSINESS RESEARCH

Business research is an organized systematic, databased, critical scientific investigation into a specific

problem faced by the today’s business with the

purpose of finding answers and solutions to it.

OR

The research that provides information to the

mangers to solve the specific problems is calledbusiness research .



CHARACTERISTICS OF BUSINESS RESEARCH

There must be no deficiency.

It must be logical based.

Analyze the intensity through data collection.

Focus on all aspect and do not avoid any

point for critical analysis and there must be

logic behind the story positive and negativeaspects should be considered.

There must be particular objective or purpose



Financial and Accounting Research

Budget control system

Inventory costing method

Appreciation and depreciation

Time series behavior of quarterly early.

Transfer pricing

Taxation methods

Operations of financial institution

Optimum financial ratios

Mergers and acquisitions

Others



Management and Organizational Behavior Research

Research studies regarding to employees attitude and

behavior

Management strategy

Information system

Human resource management

Impact of demographic changes on management

practices



Sales and Marketing Research

Advertising

Sales promotions

Distributions

Packing

New product development

Consumer preferences

Market pricing and others



TYPES OF BUSINESS RESEARCH

Applied research

Basic research



Applied Research

Research, which is concerned to solve the

current problems faced by the managers in

work setting, demanding a timely solution, is

called applied research.

Example:

A particular product may not be selling well and the

manager might want to find the reason for this in

order to take a corrective action. So research

conducted by him will be called applied research.

Types of Business research



Basic Research or Pure Research

Is to generate a body of knowledge by trying to

comprehend how certain problems that occur in

organizations can be solved.

It is also known as pure research. The findingof such research contributes to the building of

knowledge in the various functional areas of

business. Such knowledge generated is usually

later applied in organizations for problemsolving.



Example: A university professor may be interested ininvestigating the factors that contributes toemployee’s absenteeism at work place. After

gathering information on this topic fromdifferent institutions and analyzing the data theprofessor identify the factors which primarilyinfluence absenteeism and later on, on the

basis of this report managers use thisinformation to solve their problem of employeeabsenteeism



Basic Appl ied

• Basic knowledge.

• Freedom.

• Take more time .

• Success results published,

impact on other scientists.

• Not directly involved in thesolution to a pragmatic

problem.

• Apply to areas of interest

• Constrained to demands

• Research is quick may notmeet high standards.

• Success results are used by

managers/sponsors.

• Conducted when a decisionmust be made about a

specific real-life problem



Need of Research for Managers

Knowledge of research is more important for today’s

manager to handle the following situations:(Solve problems, Decision making tool, Competition, Risk, Investment

Hire researchers and consultants more effectively)

Identify and effectively solve minor problems in the

work setting.

Appreciate and be constantly aware of the multiple

influences and multiple effects of factors imposing

on a situation.



Take calculated risks in decision making, knowing

full well the probabilities associated with thedifferent possible outcomes

Prevent possible vested interests from exercising

their influence in a situation.

Relate to hired researchers and consultants more

effectively.

Combine experience with scientific knowledge

while making decisions.



Internal and External Researcher

Internal Researchers:

Some large organizations have their own research and

development department (R & D dept), where their own

researcher work. They conduct applied and pure

research in their own organizations. Medium size

organization may not have big R & D departments

instead having one or two researcher. But small

organization cannot afford the cost of internal

researchers.



Advantages

•Easy acceptability by the

employees while

conducting a research.

•Less time is required to

understand the culture

and structure.

• Availability to check theimplemented

recommendations

Cost effective

Disadvantages

•They might be stereotyped

having no fresh ideas.

•Their own people will not

perceive them as experts.

•Their results about a

problem may be biased



External Researcher

Well-established research firms are available

now a day to conduct research. These firm

have experiences and qualified specialistresearchers to conduct research. Companies

will hire the out side researcher to solve their

most complicated problems.



Advantages

•They have plenty of

experience of research work

with different organizations

•Their research will be

unbiased

Their solutions will more

credible

Disadvantages

•Take more time

•Not aware about the

norms and culture of the

company

•The cost of externalresearchers will be very

high



MANAGER RESEARCHER RELATIONSHIP

• Manager should make sure while hiring

researchers or consultants that :-

• Roles and expectations of both parties are clear.

• Org. Values and constraints are stated.

• Good relations are buildup among researchers,

management and employees.



HOW TO LOCATE AND SELECT A

RESEARCHER

– Many research firms are available who

provide their services.

– Business Colleges

– Internet

– Yellow Pages

– Magazines

– Business segments of news papers

D t i i Wh t C d t B i



Is sufficient time

available before

a managerial

decisionmust be made?

Is the infor-

mation already

on hand

inadequate

for makingthe decision?

Is the decision

of considerable

strategic

or tacticalimportance?

Does the value

of the research

information

exceed the cost

of conductingresearch?

Conducting

Business

Research

Do Not Conduct Business Research

Time

Constraints

Availability of

DataNature of the

Decision

Benefits vs.

Costs

Yes Yes Yes Yes

No No No No

Determining When to Conduct Business

Research



Value

•Decreased

uncertainty

•Increased likelihoodof a correct decision

•Improved business

performance and

resulting higher

profits

Costs

•Research

expenditures

•Delay of business

decision andpossible disclosure

of information to

rivals

•Possible inaccurate

research results

Value Should Exceed

Estimated Costs

R h d Ethi



25

Research and Ethics

Ethics?

Ethics are moral principles and values that influence theway a researcher(s) conducts their research activities.

Researhers should have a moral responsibility toexplain and find answers to their questions honestly andaccurately.

Researhers have to point out the strengths of theirmethods and models but also have to inform us abouttheir weakness and reliability of their results.

A reader have to ensure that the results of a researchdid not provide wrong implementation(s) about the topic.

Ethics or moral principles in a reserach are serious andinevitable issues.



Reference stud ies

Research methods for business (by Uma Sekaran)

Business Research Methods(by William G. Zikmund)

Social Research Methods

(by Lawrence D. Neuman)

research methods ch 1

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