BusinessResearch Methods

Chapter 1:

The Role of Business Research

Business research is defined as the systematic and objective process of generating information for aid in making business decisions.

Business Research Defined

Business Research Defined

• Research is defined as organized, systematic, data based, critical, scientific inquiry into a specific problem that needs solution.

• Research provides the information that enables managers to make decisions to rectify problems

• Research Methods:Refer to the ways in which research studies are designed and procedures are established by which data are analyzed.

Business Research

• Research information is neither intuitive nor haphazardly gathered.

• Literally, research (re-search) -“search again” • Business research must be objective• Detached and impersonal rather than biased• It facilitates the managerial decision process

for all aspects of a business.

Information

Reduces

Uncertainty

I don’t knowif we

shouldoffer on-sitechild care?

“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.”

Artemus Ward

Basic research

Applied research

Business Research Types

Basic Research

• Attempts to expand the limits of knowledge.• Not directly involved in the solution to a

pragmatic problem.• When research is being done chiefly to improve

our understanding of certain problems that commonly occur in organizational settings and how to solve them. R & D department and university professors do this. Purpose is to improve / generate more knowledge.

Basic Research Example

• Is executive success correlated with high need for achievement?

• Are members of highly cohesive work groups more satisfied than members of less cohesive work groups?

• Do consumers experience cognitive dissonance in low-involvement situations?

"The secret of success is to know something nobody else knows. "

Aristotle

Applied Research

• Conducted when a decision must be made about a specific real-life problem

• To Solve currently existing problem in the work setting. Research is done with the intentions of applying the results of its findings to solve specific problem currently faced by organization. Most organizations do this research. Usually used for decision-making.

Applied Research Examples

• Our employee turnover has increased significantly. We don’t know why?

• Business research told us that poor working conditions are responsible,

• Should we promote females to managerial positions?

• Research showed women are equally competent to be managers.

MANAGERS & RESEARCH

It helps manager to:• Identify and efficiently solve minor problems.• Know how to discriminate good from bad research • Be aware of multiple influences and effects in a particular

solution.• Take calculated risks • Prevent possible vested interests from exercising the

influence in situation • Relate to hired researchers and consultants more

effectively. • Combine experience with scientific knowledge while

making decisions

MANAGER RESEARCHER RELATIONSHIP

• Manager should make sure while hiring researchers or consultants that :-

• Roles and expectations of both parties are clear

• Org. Values, philosophy 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

Internal / External Researchers

• Internal Researchers: Some large organizations (like Lever Brothers, ICI & P &G) have set up their own Research and development departments, where their own researchers work. They conduct applied and pure research in their organization. Medium sized organizations might not have big R & D departments.

Internal / External Researchers

Advantages • Easy acceptability by the employees while conducting a

research.• Less time is required to understand the culture an structure. • Availability to check the implemented recommendations• Cost-effective

Disadvantages• They might be stereotyped having no fresh ideas.• Vested interests can contaminate the results• They are not perceived as experts by their own people

Internal / External Researchers• External Researchers: well established research firms are available

now a days to conduct research. These firms have experiences and qualified specialist researchers to conduct research. Companies go for outside researchers if either they don’t have their own research department or they think outside researcher will better address the problem.

• Advantages• They have plenty of experience of working with different type of

organizations.• They are well conversant with sophisticated research tools and

knowledge.• Their research will be unbiased• Disadvantages• Take more time • Not aware of company norms and culture• Costly• Face difficulty in acceptance from employees

SCIENTIFIC RESEARCH• Scientific research is focused on goal

solving and pursues a step-by-step logical, organized and rigorous method to identify problems, gather data, analyze them, and draw valid results. Scientific thinking is not based on experience emotions and intuition only.

• Scientific Research applies on both applied and basic research.

Determining When to Conduct Business Research

• Time constraints

• Availability of data

• Nature of the decision

• Benefits versus costs

Is sufficient time available before

a managerial decision

must be made?

Is the infor-mation already

on handinadequate for making

the decision?

Is the decision of considerable

strategicor tactical

importance?

Does the value of the research

informationexceed the cost of conducting

research?

ConductingBusinessResearch

Do Not Conduct Business Research

Time ConstraintsAvailability of

Data Nature of the DecisionBenefits vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Business Research

Value versus Costs

• Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

Value

•Decreased uncertainty•Increased likelihood of a correct decision•Improved business performance and resulting higher profits

Costs•Research expenditures•Delay of business decision and possible disclosure of information to rivals•Possible erroneous research results

Value Should Exceed Estimated Costs