Chapter – 1 Notes Research Methods (KJAN) Winter Quarter 2017

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What is Research: Research is the systematic and scientific process of inquiry into a problem with the purpose of finding a solution for it. With good understanding of the research good computer skills, a manager can face decision situations involving many sophisticated variables.

Business Research: Managers encounter problems that need solutions. Business research is a systematic and organized effort to investigate such problems.

Definition of Research: Business Research is defined as an organized, systematic, data-based, critical, objective, scientific inquiry or investigation into a specific problem, undertaken with the purpose of finding answers or solutions to it.

The research is based on (i) Primary data: Gathered first hand for the given problem (ii) Secondary data: Already available (company records, industry reports, publications, or on the net).

Data Types:

(i) Quantitative Data (structured questionnaire), (ii) Qualitative Data (observation, interviews, open-ended questionnaire).

Research and Manager: Research investigation covers, accounting, finance, management, and marketing, or an interrelated issue. Problems must be analyzed in the context of external environment (economic, political, demographic, technological and competitive).

Types of Business Research:

Applied Research: It is undertaken to resolve a problem currently faced by an organization. It is specifically focused on a current issue.

Basic Research or Fundamental Research: The primary purpose of basic research is to generate more knowledge and understanding of the phenomenon of interest and to create theories from research results. Results and theories of basic research can then be applied to other situations.

Managers and Research: Through research managers can understand, predict and control events and behaviors in their environment. Because of research and research methods, managers can:

1. Identify and effectively solve minor problems. 2. Differentiate between good and bad research. 3. Understand the multiple influences and multiple effects of complex factors in the

environment. 4. Take calculated risk in decision making, based on known probabilities of various

outcomes. 5. Prevent influence of people with vested or personal interests. 6. Relate to hired consultants and researchers more effectively. 7. Combine experience with scientific knowledge when making decisions.

Chapter – 1 Notes Research Methods (KJAN) Winter Quarter 2017

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The manager and the Consultant-Researcher: Managers are often required to engage consultants or researchers to investigate more complex and time-consuming problems. Sources of consultants and researchers;

a. Consulting and Research companies (from business directories or the Internet)

b. Individual Consultants or Researchers (by reference)

c. Universities (research faculties and departments)

d. Full-Service Advertising companies (for marketing research)

The Manager-Researcher Relationship

The manager must take care of the following aspects when dealing with researchers:

a. The manager must inform the researcher of the relevant variables involved in the problem or issue at hand.

b. The manager should provide insights into the problem. c. The manager must clearly identify and explain the roles of the manager and the

researcher in the assignment being undertaken. d. The manager must clearly identify what kind of information will be made available to the

researcher. e. The manager must identify what type of information and records are confidential or

classified and will not be provided to the researcher Values: When engaging a researcher or consultant, the manager should ensure that there is a congruence or match between the value systems of the organization and the consultant company. Specifically, the manager must ensure that:

a. The roles and expectations of both parties are made explicit and understood. b. Relevant philosophies and value systems (organizational culture) are clearly stated and

any constraints or limitations are clearly communicated. c. A good rapport is established between (i) the manager and the researcher, and (ii)

researcher and the employees. Internal Consultants/Researchers: Large organizations have their own research departments with in-house capacity to undertake management research.

Advantages of Internal Consultants/Researchers

a. The Internal Researchers are readily accepted by the employees. b. The Internal Research Team already understands the organizational structure and

culture, reducing the orientation time. c. Internal Researchers are available during implementation of the recommendations. d. The Internal Research Team costs much less.

Chapter – 1 Notes Research Methods (KJAN) Winter Quarter 2017

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Disadvantages of Internal Consultants/Researchers

a. Internal Researchers may be inhibited in taking an independent external perspective, and may miss fresh ideas.

b. There may be internal coalitions to influence the Internal Researchers to conceal, distort, or misrepresent facts.

c. Internal Researchers may be regarded in low esteem and their conclusions may not get full value.

d. The Internal Researchers may have their own biases because of being employees of the same organization.

External Consultants/Researchers: External consultants/researchers are members of the team hired from outside.

Advantages of External Consultants/Researchers

a. The External Research Team is more enriched in experience, brings an outside, independent perspective, and is open to a wider variety of alternatives.

b. The External Research Team will have knowledge of more sophisticated problem-solving techniques and trained in innovative theories and technologies.

Disadvantages of External Consultants/Researchers

a. The External Research Teams are very expensive. b. The External Research Team will take a considerable time in understanding the structure

and the culture of the organization. c. External Researchers will charge additional fees for any help in the implementation

process Knowledge about Research and Managerial Effectiveness:

a. Manager becomes more observant and sensitive to internal and external factors. b. Manager is more effective in dealing with consultants and researchers. c. A Manager who fully understands the research process will be able to appreciate the use

of modern research technology and research models, such as simulation. d. Manager better understands the conclusions and recommendations of the researchers. e. Manager is able to grasp the full scope and depth of the managerial decision making

process. Ethics and Business Research: Ethics in business research refers to a code of conduct or expected social norms of behavior. Ethical conduct applies to:

a. The organization sponsoring the research b. Employees of the sponsor organization c. Researchers and their staff, and d. The respondents who are required to provide data.

In general, ethics in business research require everyone involved to show behavior in good faith, provide required level of attention, subdue ego, and place organizational goals above the personal goals.