research methodology 1 unit notes
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BA9227 BUSINESS RESEARCH METHODOLOGY
( UNIT I - NOTES)
MEANING
Research is an endeavour to discover answers to intellectual and practical problems through the
application of scientific method.
“Research is a systematized effort to gain new knowledge”.-Redman and Mory.
Research is the systematic process of collecting and analyzing information (data in order to increase our
understanding of the phenomenon about which we are concerned or interested.
BUSINESS RESEARCH
!t is a systematic organised effort to investigate a specific problem encountered in the work setting that
need a solution.
"his means that the first step in research is to know w!"! t! #"o$%!& '"!'s e#ist in the organisationand to i!nti* 's +%!'"%* 'n s#!+ii+'%%* 's #ossi$%! t! #"o$%!&s t't n!! to $! st,i! 'n
so%!.
OB/ECTI0ES O1 RESEARCH
"i&'"* o$3!+ti!4
"he main ob%ective of research is to find answer to &uestions through the application of scientific
procedures.
S!+on'"* o$3!+ti! 4
- "o find out the truth which is hidden
- "o achieve new insights
- "o discover the characteristics of particular individuals$ situation or group
- "o e#amine the fre&uency with which something occurs (or with which it is associated with something
else
- "o test hypothysis of a casual relationship between variables
- "o test a hypothesis of a causal relationship between variables ' ypothesis-"esting Research.
Si5nii+'n+! ( Io"t'n+!) O R!s!'"+
-!t enable the manager to i!nti* +"iti+'% iss,!s6 5't!" ino"&'tion6 'n'%*! 't' 'n i%!&!nt
t! "i5t +o,"s! o '+tion
- Research enables to ,n!"st'n in 8 +ont"o% t! !ni"on&!nt
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- Research !n'$%!s to s!ns! s#ot 8 !'% wit #"o$%!&s before they go out of hand
- Research helps the manager to ,n!"st'n t! n!! o" 'n s'"! s'"! ino"&'tion with consultants
- !t is useful to so%! '"io,s o#!"'tion'% 'n #%'nnin5 #"o$%!&s of business and industry
- !t enable the &'n'5!" to !%i&in't! o" 'oi &'kin5 !+isions on s,$3!+ti! o" $i's! &'nn!"
CHARACTERISTICS O1 RESEARCH
Research is directed towards the solution of a problem.
Research is based upon observable e#perience or empirical evidence.
Research demands accurate observation and description.
Research involves gathering new data from primary sources or using e#isting data for a new purpose.
Research activities are characterized by carefully designed procedures.
Research re&uires e#pertise i.e.$ skill necessary to carryout investigation$ search the related literature and
to understand and analyze the data gathered.
Research is ob%ective and logical ' applying every possible test to validate the data collected and
conclusions reached.
Research involves the &uest for answers to unsolved problems.
Research re&uires courage.
Research is characterized by patient and unhurried activity.
Research is carefully recorded and reported.
HALLMARS O1 SCIENTI1IC RESEARCH
SCIENTI1IC RESEARCH
- )ocus in solving soling problem step by step
- !t enables the researches to arrive at accurate results
- "his enables various other organisations to apply those solutions when they encounter similar problems
- elps the most critical factor at the work place that need specific attention so as to avoid problems
CHARACTERISTICS O1 SCIENTI1IC RESEARCH
1. *urposiveness +. Rigor (,trictness ."estability .Replicability (Repeat
/. *recision ( e#actness and confidance 0.1b%ectivity 2. 3enearalizability 4.*arismony( Miserliness
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THE BULDING BLOC O1 SCIENTI1IC IN RESEARCH
DEDUCTION
“ 5eduction is the process by which the researcher arrive at a reasoned conclusion by logical
generalization of known fact”
INDUCTION
“!t is a process where we observe certain phenomena and on this basis arrive at conclusion”
1n the other hand induction is based on observation.
BASIC OSTULATES IN SCIENTI1IC METHOD
!t relies on empirical evidence.
!t utilizes relevant concepts.
!t is committed to only ob%ective considerations.
!t presupposes ethical neutrality.
!t results into probabilistic predictions.
"he methodology is made known.
6ims at formulating scientific theories.
:UALITIES O1 A GOOD RESEARCH
7. ,ystematic +. 8ogical . 9mpirical .Replicable /. :reative 0.;se of multiple methods
NEED 1OR RESEARCH
< 9#ploration
< 5escribe
< 5iagnose
3
1bservation
,cientific data
collection5ata 6nalysis5eductionconclusion
!nterpretingresults
5eveloping
ypotheses
)ormulation of
theory
*reliminary
information gathering
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< ypothesis
< !nductions and deductions
,:1*9 1) R9,96R:
R9,96R: )1R 59:!,!1= M6>!=3
"hrows light on risks and uncertainty
!dentify alternative courses of action
elps in pro%ect identification
,olves investment problems
,olves pricing problems
,olves allocation problems
,olves decision making issues in R
,olves various operational and planning problems of business and industry
elps social scientists in studying social relationships and in seeking answers to various social
problems.
)or students$ research means a careerism or a way to attain a high position in the social structure.
)or professionals in research$ it may mean a source of livelihood.
)or philosophers and thinkers$ research means the outlet for new ideas and insights.
)or literary men and women$ research means development of new styles and creative work.
)or analysts and intellectuals$ research means generalizations of new theories.
*R1?89M, != R9,96R:
;ncontrollable variables
uman tendencies
"ime and money
8ack of computerization
8ack of scientific training in the methodology of research
!nsufficient interaction between university research departments and business establishments
8ack of confidence on the part of business units to give information
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5ifficulty of ade&uate and timely secretarial assistance
*oor library management and functioning
5ifficulty of timely availability of published data.
!gnorance
Research for the sake of research-limited practical utility though they may use high sounding business
%argon.
TYES O1 RESEARCH ( !nternet Material
;. D!s+"i#ti! s An'%*ti+'% R!s!'"+
5escriptive Research is a fact finding investigation which is aimed at describing the
characteristics of individual$ situation or a group (or describing the state of affairs as it e#ists at present.
6nalytical Research is primarily concerned with testing hypothesis and specifying and interpreting
relationships$ by analyzing the facts or information already available.
2. A##%i! s 1,n'&!nt'% R!s!'"+ o" B'si+ "!s!'"+
6pplied Research or 6ction Research is carried out to find solution to a real life problem re&uiring an
action or policy decision.
)undamental Research which is also known as basic or pure research is undertaken for the sake of
knowledge without any intention to apply it in practice.!t is undertaken out of intellectual curiosity and
is not necessarily problem-oriented.
. Lon5it,in'% R!s!'"+ - On!-ti&! R!s!'"+
o 1ne-time Research ' Research confined to a single time period.
o 8ongitudinal Research ' Research carried on over several time periods.
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?. Di'5nosti+ R!s!'"+
!t is also called clinical research which aims at identifying the causes of a problem$ fre&uency with
which it occurs and the possible solutions for it.
7. E@#%o"'to"* R!s!'"+
!t is the preliminary study of an unfamiliar problem$ about which the researcher has little or noknowledge. !t is aimed to gain familiarity with the problem$ to generate new ideas or to make a precise
formulation of the problem. ence it is also known as formulative research.
. E@#!"i&!nt'% R!s!'"+
!t is designed to assess the effect of one particular variable on a phenomenon by keeping the other
variables constant or controlled.
9. Histo"i+'% R!s!'"+ ' !t is the study of past records and other information sources$ with a view to find
the origin and development of a phenomenon and to discover the trends in the past$ inorder to
understand the present and to anticipate the future.
RESEARCH ROCESS
7. )ormulating the research problems
+. 9#tensive literature survey
. 5evelopment of working hypotheses
6
5efine
Research
*roblem
Review
:oncepts
6nd
theories
Review
*revious
Research
findings
)ormulate
hypothesis
:ollect
5ata
(9#ecution
6nalyse
5ata
("est
ypothesis
if any
5esign
Research
(!ncluding
,ample
5esign
!nter
an
rep
F
F
F
F
F
F
F
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. Research design
/. 5ata :ollection
0. 6nalyse data
2. *reparation of research report
DE1INITION O1 THE RESEARCH ROBLEM
RESEARCH ROBLEM
Ahat is a research problemB
"he term CproblemD means a &uestion or issue to be e#amined.
Research *roblem refers to some difficulty Eneed which a researcher e#periences in the conte#t of either
theoretical or practical situation and wants to obtain a solution for the same.
HO DO E NO E HA0E A RESEARCH ROBLEM
:ustomer complaints
:onversation with company employees
1bservation of inappropriate behaviour or conditions in the firm
5eviation from the business plan
,uccess of the firmDs competitorDs
Relevant reading of published material (trends$ regulations
:ompany records and reports.
"he first step in the research process ' definition of the problem involves two activitiesF
!dentification E ,election of the *roblem
)ormulation of the *roblem
IDENTI1ICATION SELECTION O1 THE RESEARCH ROBLEM
"his step involves identification of a few problems and selection of one out of them$ after evaluating the
alternatives against certain selection criteria.
SOURCES O1 ROBLEMS
Reading - 6cademic 9#perience - 5aily 9#perience - 9#posure to )ield ,ituations - :onsultations
?rainstorming - Research !ntuition
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DE1INITION 1ORMULATION O1 THE RESEARCH ROBLEM
)ormulation is the process of refining the research ideas into research &uestions and ob%ectives.
)ormulation means translating and transforming the selected research problemEtopicEidea into a
scientifically researchable &uestion. !t is concerned with specifying e#actly what the research problem
is.
*roblem definition or *roblem statement is a clear$ precise and succinct statement of the &uestion or
issue that is to be investigated with the goal of finding an answer or solution.
"here are two ways of stating a problemF
*osting &uestion E &uestions
Making declarative statement E statements
ROCESS TECHNI:UES IN0OL0ED IN DE1INING THE ROBLEM
,tatement of the problem in a general way.
;nderstanding the nature of problem
,urveying the available literature
5eveloping ideas through discussions
Rephrasing the research problem
CRITERIA O1 A GOOD RESEARCH ROBLEM
:lear and ;nambiguous ' 9mpirical ' Gerifiable ' !nteresting - =ovel and 1riginal
6vailability of 3uidance
D!inin5 "o$%!&6 R!s,%ts in C%!'" C,t R!s!'"+ O$3!+ti!s..
8
St't!&!nt o R!s!'"+ O$3!+ti!s
S*to& D!t!+tion
An'%*sis o t! Sit,'tion
"o$%!& D!inition
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ESTABLISHMENT O1 RESEARCH OB/ECTI0ES
Research 1b%ectives are the specific components of the research problem$ that youDll be working to
answer or complete$ in order to answer the overall research problem. - :hurchill$ +HH7
"he ob%ectives refers to the &uestions to be answered through the study. "hey indicate what we are
trying to get from the study or the e#pected results E outcome of the study.
Research 1b%ectives should be clear and achievable$ as they directly assist in answering the research
problem.
"he ob%ectives may be specified in the form of either statements or &uestions.
3enerally$ they are written as statements$ using the word “to”. ()or e#ample$ Cto discover ID$ Cto
determine ID$ Cto establish ID$ etc.
1ORMULATION O1 HYOTHESIS
HYOTHESIS
6 hypothesis is an assumption about relations between variables.
ypothesis can be defined as a logically con%ectured relationship between two or more variables
e#pressed in the form of a testable statement.
Relationships are con%ectured on the basis of the network of associations established in the
theoretical framework formulated for the research study.
0ARIABLES
6nything that can vary can be considered as a variable.
6 variable is anything that can take on differing or varying values.
)or e#ampleJ 6ge$ *roduction units$ 6bsenteeism$ ,e#$ Motivation$ !ncome$ eight$ Aeight etc.
=oteF "he values can differ at various times for the same ob%ect or person (or at the same time for different
ob%ects or persons.
0'"i'$%! Att"i$,t!
6 variable is a characteristic that takes on two or more values whereas$ an attribute is a specific value on
a variable (&ualitative.
)or e#ampleJ
"he variable ,9KE39=59R has + attributes - Male and )emale.
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"he variable 63R99M9=" has / attributes ' ,trongly 6gree$ 6gree$ =eutral$ 5isagree$ ,trongly
5isagree.
T*#!s o 0'"i'$%!s
E@#%'n'to"* s E@t"'n!o,s 0'"i'$%!
"he variables selected for analysis are called e#planatory variables and all other variables thatare not related to the purpose of the study but may affect the dependant variable are e#traneous.
D!#!n'nt s In!#!n!nt 0'"i'$%!
"he variable that changes in relationship to changes in another variable(s is called dependant variable.
"he variable whose change results in the change in another variable is called an independent variable.
OR
6n independent variable is the one that influences the dependant variable in either a positive or negative way.
HYOTHESIS
Research ypothesis is a predictive statement that relates an independent variable to a dependant
variable.
ypothesis must contain atleast one independent variable and one dependant variable.
ypothesis are tentative$ intelligent guesses as to the solution of the problem.
ypothesis is a specific statement of prediction. !t describes in concrete terms what you e#pect to
happen in the study.
ypothesis is an assumption about the population of the study.
!t delimits the area of research and keeps the researcher on the right track.
ROBLEM (0S) HYOTHESIS
ypothesis is an assumption$ that can be tested and can be proved to be right or wrong.
6 problem is a broad &uestion which cannot be directly tested. 6 problem can be scientifically
investigated after converting it into a form of hypothesis.
CHARACTERISTICS O1 HYOTHESIS
:onceptual :larity - !t should be clear and precise.
,pecificity - !t should be specific and limited in scope.
:onsistency - !t should be consistent with the ob%ectives of research.
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"estability - !t should be capable of being tested.
9#pectancy - !t should state the e#pected relationships between variables.
,implicity - !t should be stated as far as possible in simple terms.
1b%ectivity - !t should not include value %udgments$ relative terms or any moral preaching.
"heoretical Relevance - !t should be consistent with a substantial body of established or known facts or
e#isting theory.
6vailability of "echni&ues ' ,tatistical methods should be available for testing the proposed hypothesis.
SOURCES O1 HYOTHESIS
5iscussions with colleagues and e#perts about the problem$ its origin and ob%ectives in seeking a
solution.
9#amination of data and records for possible trends$ peculiarities.
Review of similar studies.
9#ploratory personal investigation E 1bservation.
8ogical deduction from the e#isting theory.
:ontinuity of research.
!ntuition and personal e#perience.
TYES O1 HYOTHESIS
D!s+"i#ti! H*#ot!sis
"hese are assumptions that describe the characteristics (such as size$ form or distribution of a
variable. "he variable may be an ob%ect$ person$ organisation$ situation or event.
9#amplesF
“*ublic enterprises are more amenable for centralized planning”.
R!%'tion'% H*#ot!sis E@#%'n'to"* H*#ot!sisF
"hese are assumptions that describe the relationship between two variables. "he relationship
suggested may be positive$ negative or causal relationship.
9#amplesF
“)amilies with higher incomes spend more for recreation”.
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C',s'% H*#ot!sis state that the e#istence of or change in one variable causes or leads to an
effect on another variable. "he first variable is called the independent variable and the latter is the dependant
variable.
N,%% H*#ot!sis
Ahen a hypothesis is stated negatively$ it is called null hypothesis. !t is a Cno differenceD$ Cno relationshipD
hypothesis.
ie.$ !t states that$ no difference e#ists between the parameter and statistic being compared to or no relationship
e#ists between the variables being compared.
It is ,s,'%%* "!#"!s!nt! 's HO o" H .
E@'%!4
HF "here is no relationship between a familyDs income and e#penditure on recreation.
A%t!"n't! H*#ot!sis
!t is the hypothesis that describes the researcherDs prediction that$ there e#ist a relationship between two
variables or it is the opposite of null hypothesis. !t is represented as 6 or 7.
E@'%!4
6F "here is a definite relationship between familyDs income and e#penditure on recreation.
1UNCTIONS OR ROLE O1 HYOTHESIS
!t gives a definite point to the investigation and provides direction to the study.
!t determines the data needs.
!t specifies the sources of data.
!t suggests which type of research is likely to be more appropriate.
!t determines the most appropriate techni&ue of analysis.
!t contributes to the development of theory.
CAUSAL RESEARCH
,tudies that engage in hypotheses testing usually e#plain the nature of certain relationships$ or establish
the differences among groups or the independence of two or more factors in a situation.
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"his type of research is very comple# and the researcher can never be completely certain that there are
not other factors influencing the causal relationship$ especially when dealing with peopleDs attitudes and
motivations.:ausal Research e#plores the effect of one thing on another and more specifically$ the effect of one
variable on another.
!t determining cause and effect relationship
9#ampleF
7. !n marketing$ +',s'% "!s!'"+ is used for many types of research including testing marketing scenarios$such as what might happen to product sales if changes are made to a productLs design or if advertising is
changed.
+ .!f a clothing company currently sells blue denium %eans$casual research can measure the impact of the
company changing the product design to the colour white.
ELORATORY RESEARCH
9#ploratory research is a type of research conducted because a #"o$%!& 's not $!!n +%!'"%* !in!.3iven its fundamental nature$ e#ploratory research often concludes that perceives problem does not
acttualy e#ist. 6lthough the results of &ualitative research can give some indication as to the why$ how and when
something occurs$ it cannot tell us how often or how many.
Research is e#ploratory when you use no earlier model as a basis of your study. "he most usual reason
for using this approach is that you have no other choice
E@'%!4
:ompares smokers and non-smokers with regard to health problems.
THEORETICAL RESEARCH
"heoretical research is a critical component of many scientific fields$ because it leads to a greater
understanding of the e#act science behind e#perimental results.
"his is certainly true in fusion research. ,everal ma%or improvements in e#perimental design have
resulted from the attainment of physical understanding of fusion processes.
"his theoretical knowledge is developed through the use of computer modeling programs. Aithout this
understanding$ most advances in efficiency would result only from increasing the scale of the pro%ect.
Aith the aid of computers$ new ideas can be tested and developed much more &uickly and cheaply.
CROSS-SECTIONAL RESEARCH
:ross-sectional data in statistics and econometrics is a type of one-dimensional data set. :ross-sectional data
refers to data collected by observing many sub%ects (such as individuals$ firms or countriesEregions at the same
point of time$ or without regard to differences in time.
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"he data are typically collected from multiple groups or types of people in cross-sectional research. )or
e#ample$ data in a cross-sectional study might be collected from males and females$ from people in differentsocioeconomic classes$ from multiple age groups$ and from people with different abilities and accomplishments
A'nt'5! - cross-sectional research is that data can be collected on many different kinds of people in a
relatively short period of time.
Dis''nt'5! - it is difficult to establish time order (condition + of the necessary conditions for causality. !f
you collect data from research participants at a single time point only$ you canDt directly measure changes thatare occurring in them over time.
TIME SERIES RESEARCH
"ime series research design is another arm of mathematical statistics that statisticians can use to aid the
development of your research studies. ,ome fields which can benefit from time series research design are thosein the business and finance realm$ such as economic forecasting$ stock market analysis$ and yield pro%ects. 1f
course$ labor industries also benefit from time series research design$ in the form of workload pro%ections$
longitudinal studies$ or utility studies.
"hough time series research design has many applications$ there are two central goals of any such study. )irst$identification of the nature of a particular relation or phenomenon must occur$ by analyzing occurrences of
observations as se&uences. ,econdly$ forecasting can be accomplished$ by e#amining these patterns to predict
future time series variable values.
1f course$ before either goal is accomplished$ the observed time series data pattern must be first identified anddescribed in detail. !nterpretation and integration of data can then subse&uently occur. !ndependent of theory
future predictions can be made from such data analysis.
ROLE O1 THEORY IN RESEARCH
T!o"* (D!inition)
6 system of interconnected abstractions or ideas that condenses and organizes knowledge about the
world.
!n a general sense$ any more or less formalized conceptualization of the relationship between variables.
6ny generalized e#planatory principle.
6n always tentative e#planation of phenomena that we observeJ never provenJ representative of the mostlogical e#planation based on currently available evidenceJ becomes stronger as more supporting
evidence is gatheredJ provides a conte#t for predictions.
Mis+on+!#tions '$o,t t!o"*
6 tentative theory about the natural worldJ a concept that is not yet verified but that if true would e#plain
certain facts or phenomenaJ a scientific hypothesis that survives e#perimental testing becomes a
scientific theory
6 theory is more than %ust an idea.
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6ll theories are not e&ual.
9#amples of theoriesF
◦ "heory that the earth revolves around the sun
◦ "heory of evolution
◦ ypothesis vs. theory
H*#ot!sis s. t!o"*
ypothesis is an educated guess. 6 prediction about the relationship between two or more variables.
6 prediction as to what you e#pect to find.
ypotheses are more specific than theories.
"heories have many different hypotheses.
Results of a single research study will not prove or disprove a theory.
HAT MAES A GOOD THEORY
;. 1'%sii'$i%it* '
o "he theory must make sufficiently precise predictions that we can at least imagine evidence that
would contradict the theory.
9#amplesF )rustration-aggression theory
)reudDs theory of repression.
"heory of psychic ability
!f something is not falsifiable$ it doesnDt mean it is wrong$ simply that it has no place in science.
2. '"si&on* si%i+it*
"he best theory is the one that makes the fewest number of assumptions
6ll things being e&ual$ the simplest theory is the best theory.
"he simplest of two or more competing theories is preferable and the unknown should first be e#plained
in terms of the known
9.g.$ theories of intelligence
"heories of ;)1Ds
Magic acts
AarningF simple theories are not always right.
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9#amplesII.
!nductive reasoning ' reasoning from the particular to the general
*rocess of reasoning that a general principle is true because the special cases youLve seen are true
9#ampleF
◦ “5r. ?oughner is strange”
◦ “5r. ?oughner lives in "ulsa”
◦ “*eople who live in "ulsa are strange”
More e#amplesI
:reation and use of stereotypes
6pplying these types of reasoning to theory construction.
5eductive approach ' build a theory by starting with an abstract$ logical idea. ?ased on the theory$
perform research to test the theory.
◦ 1ften starts with common sense$ personal e#perience
◦ "heories change with testing
◦ !nductive approach ' build a theory by first looking at the results of many research pro%ects and
offering a theory that can be used to e#plain the data.
◦ :reating a theory in order to e#plain data.
THREE LE0ELS O1 ELANATION 1OR THEORY.
;. Mi+"o-%!!% t!o"* ' seeks to e#plain behavior at the level of the individual or family environment
Most of psychology is at the micro level
9#amplesF
◦ ,ternbergDs theory of love
2. M'+"o-%!!% t!o"* ' seeks to e#plain behavior at the level of large groups of people.
,tudy things like ethnicity$ class$ or gender
9#ampleF
a. :onflict theory ' the society or organization functions so that each individual participant and
its groups struggle to ma#imize their benefits$ which inevitably contributes to social change
such as changes in politics and revolutions.
b. 9volution
Much of sociology is at the macro level
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a. ,omewhat between micro and macro.
8ooks at things like social institutions$ organizations$ or communities. ?asically small groups.
b. 9#. Ahat role should *sychology :lub serve at R,;B
Much of communications functions at the meso-level$ though also micro and macro.
,ocial psychology also may function at the meso-level.
Many times the same topic can be studied by all levels of theory.
9.g.$ "a# cuts
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