RESEARCH METHODS FOR BUSINESS

Written by

UMA SEKARAN

Why do we make research We make research because we want to know more about ourself and the world around us.

The basic purpose of research in every discipline is to teach students to work systematically and for them to learn critically to analyse issues before acting upon them. However, research is essential for understanding even basic everyday phenomena that need to be handled by individuals and 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....

we really cannot take decisions on important issues unless we investigate more deeply the relevant information and gathering more information on the particular aspect we are interested in. Then we analyse all these information to make a judgement about the right solution to our problem.The research, therefore, makes life easier, not only in business but also in general.

Kuhn, 1970 said that the research can be considered as a process of problem solving for a specific problem under specific conditions.

e.g Through systematic research it was found that serious stomach and digestion problems were caused by the salmonella bacteria. Research also shows that the salmonella bacteria did not survive at a temperature of 800 C or higher so when it is suspected the bacteria, the food can be heated at that temperature in the practise.

Why do we make research

WHAT IS RESEARCH ?Research is a process, which consists upon:

Problem identificationSearching of factors involved in problemDetermination of relationship among the factors

Solution of the problemIn 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, data based, 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 called business 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 negative aspects 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 ResearchResearch, 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 finding of 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 problem solving.

Example:A university professor may be interested in investigating the factors that contributes to employee’s absenteeism at work place. After gathering information on this topic from different institutions and analyzing the data the professor identify the factors which primarily influence absenteeism and later on, on the basis of this report managers use this information to solve their problem of employee absenteeism

Basic Applied

• Basic knowledge.

• Freedom.

• Take more time .

• Success results published, impact on other scientists.

• Not directly involved in the solution to a pragmatic problem.

• Apply to areas of interest

• Constrained to demands

• Research is quick may not meet high standards.

• Success results are used by managers/sponsors.

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

Need of Research for ManagersKnowledge of research is more important for today’s manager to handle the following situations:(Solve problems, Decision making tool, Competition, Risk, InvestmentHire 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 the different 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 the implemented recommendationsCost 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 specialist researchers 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 external researchers 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

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 information

exceed the cost of conducting

research?

ConductingBusinessResearch

Do Not Conduct Business Research

Time Constraints

Availability of Data

Nature of the Decision

Benefits vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Business Research

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 inaccurate research results

Value Should Exceed Estimated Costs

25

Research and Ethics

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

Researhers should have a moral responsibility to explain and find answers to their questions honestly and accurately.

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

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

Ethics or moral principles in a reserach are serious and inevitable issues.

Reference studies

Research methods for business

(by Uma Sekaran)Business Research Methods (by William G. Zikmund)Social Research Methods

(by Lawrence D. Neuman)