Business Research Methods Instructor Prof Dr Himayatullah Khan

Business Research Methods Instructor: Prof. Dr. Himayatullah Khan

Chapter 1 Introduction To Research

After completing this chapter you would be able to understand: l l l l What is research What is business research Types of business research Importance of research for a manager Relationship of the manager and the researcherconsultant Internal Versus External Researcher Knowledge about research and managerial effectiveness Ethics and business research

What managers do? Make several decisions l Solve problems l What would help you to make right decisions? Will it be your experience on the job? Or hunch? Or you just hope for good luck?

Experience, Hunch or Hope? l All of these will play a part after you have thoroughly investigated the problem situation and generated some alternative solutions to choose from. l Whether or not managers realize it they are constantly engaged in research as they try to find solutions to the day-to-day problems; big or small, that confront them at work.

Research It is a process of finding solutions to a problem after a thorough study and analysis to the situational factors

l Sometimes managers make good decisions l Sometimes managers make bad decisions l The difference lies in how managers go about the decision making process

Good Decision Making fetches YES to the following questions l Do managers identify where exactly the problem lies? l Do they correctly recognize the relevant factors? l Do they know what type of information to be gathered and how? l Do they know how to make use of the information collected and draw appropriate conclusions to make the right decisions? l Do they know how to implement the results of this process to solve the problem?

Business Research is an organized, systematic, data based, critical, objective, scientific enquiry or investigation into a specific problem, undertaken with a purpose of finding answers or solutions to it.

Examples of Business Problems l Accounting Budgets control systems, inventory costing methods, accelerated depreciation taxation methods are some areas that are researched. l Management l Study of employee attitude and behavior, HRM, POM, strategy formulation.

Examples cont. l Finance Financial Ratios, mergers and acquisitions, mortgages, operations of financial institutions l Marketing Product image, Advertising, Sales promotion, packaging, pricing, after sale service, new product development etc.

Types of Business Research Applied Research Basic Research

Applied Research done with the intention of applying the results of the findings to solve specific problems currently being experienced in the organization is called Applied Research

Basic Research l Research done chiefly to enhance the understanding of certain problems that commonly occur in organizational settings, and seek methods of solving them is called basic or fundamental research. l It is also known as pure research. l Such knowledge generated is usually later applied in organizational setting for problem solving.

Examples of Applied and Basic Research

How is it helpful for you? 1. Identify and effectively solve minor problems in the work setting. 2. Know how to determine good from bad research. 3. Appreciate and be constantly aware of the multiple influences and multiple effects of factors impinging on a situation. 4. Take calculated risks in decision making, knowing full well the probabilities associated with the different possible outcomes.

5. Prevent possible vested interests from exercising their interests in a situation. 6. Relate to hire researchers and consultants more effectively. 7. Combine experience with scientific knowledge while making decisions.

Managers and Research l l Managers with knowledge of research have an advantage over those without. Though yourself may not be doing any major research as a manager, you have to understand, predict, and control events that are dysfunctional to the organization Due to complexity of modern organizations and the uncertainty of environment they face, the management has become one of constant trouble shooting in workplace This “Research” will help managers sense, spot, and deal with problems before they get out of hand.

How to locate and Select a Researcher? l Through telephone directories. l The consulting firms will provide lists of individuals that have expertise in specific areas. l Other organizations that have used their services can also be contacted to ascertain the merits and effectiveness of the individuals and the reputation of the firm.

The Manager Researcher Relationship When the manager is knowledgeable about research, then the interactions between the manager and researcher become more meaningful purposeful and beneficial to both organization and the researcher. l Managers provide information. l What records will not be made available. l

To summarize, the manager should make sure while hiring researchers or consultants that: l l l The roles and expectations of both parties are made explicit. Relevant philosophies and value systems of the organization are clearly stated, and constraints, if any, communicated. A good rapport is established with the researchers, and between the researchers and the employees in the organization, enabling the full co-operation of the later.

Internal Versus External Consultants-Researcher Internal Consultants/Researchers l Some organizations have their own consulting or research department, which might be called the Management Services Department, the Organization and method department

Advantages of Internal Researcher l l The internal team is readily accepted by the employees where research is to be done. The team requires much less time in understanding the structure. They would be available for implementation after the research findings are accepted, if bugs appear it would be removed with their help. Cost is less as compare to external team.

Disadvantages of Internal Researchers l l They may fall into stereotype way of looking at the organization and its problems. There is scope of certain powerful coalitions in the organizations to influence the internal team to conceal, distort or misrepresent certain facts. They might not be perceived as experts by the staff and management. Certain organization biases of the internal research team might in some instances make the findings less objective and less scientific.

Advantages of External Researcher/Consultant l The external team has a wealth of experience as they have worked with various organizations. They would think divergently and convergently rather than hurry to an instant solution on the basis of apparent facts in the situation. l They have periodic training programs. External research institutions ensure that their members are current on the latest innovations through periodic organized training programs.

Disadvantages of External Researcher/Consultant l The cost of hiring External Researcher is usually high. l They seldom get a warm welcome, nor are accepted by employees. l The external team also charges additional fees for their assistance in the implementation and evaluation phases.

Ethics in Business Research Ethics in business research refers to a code of conduct or expected societal norm of behavior while conducting research Ethical conduct applies to 1. Organization 2. Members sponsoring the research 3. The researchers who undertake the research 4. The respondents who provide them with the relevant data

Ethics of Business Research l l l The person instituting the research should do so in good faith. Pay attention to what the results indicate. Surrender the ego. Pursue organizational rather than self interest. Ethical conduct should be reflected in the behavior of the researchers, participants who provide the data, analyst who provide the result and the entire research team who provide the interpretation and suggests alternative solutions.

Ethics cont. l l Ethical behavior pervades each step of the research process—data collection, data analysis, reporting and dissemination of information on the internet, if such an activity is undertaken. How the subjects are treated and how confidential information is safeguarded are all guided by business ethics.