Introduction to Research For MBA III,, 2017

Learning Objectives Upon completion of this chapter, you will be able to: To describe about paradigms, philosophical aspects of research To describe why research methods is necessary for managers To explain the difference between basic and applied research To define business research/management research and its application To explain ethical issues in management research

Human Knowledge Knowledge consists of facts and theories that enable one understand phenomena and to solve problems Knowledge is the key to socio-economic and technological development Inadequate knowledge – an obstacle in finding solutions to problems

Human Knowledge Human knowledge – works at two level: Primary level – existing knowledge is applied to solve the social/business problem Incremental level – existing knowledge alone is not sufficient, additional knowledge is required to solve the problem

Definitions Research is an organized, systematic, data-based, critical, scientific enquiry or investigation into a specific problem, undertaken with the objective of finding answers or solutions to it.” (Sekaran, 2007)

Concept of Research What is research?

Which of these can be classified as Research? [1] Rakesh prepared a paper on “computer usage in secondary schools” after reviewing literature on the subject available in his university library and called it a piece of research.   [2] Seema says that she has researched and completed a document which gives information about the age of his students, their SPM results, their parents income and distance of their schools from the District Office. [3] Sameer participated in a workshop on curriculum development and prepared what he calls, a research report on the curriculum for building technicians. He did this through a literature survey on the subject and by discussing with the participants of the workshop.

Concept of Research None of the above examples can be classified under the name research.  WHY ?    You will know it when you have understood   the concept of the term ‘research’.

Consider the following case which is an example of research: A general manager of a car producing company was concerned with the complaints received from the car users that the car they produce have some problems with rating sound at the dash board and the rear passenger seat after few thousand kilometers of driving.   He obtained information from the company workers to identify the various factors influencing the problem.   He then formulated the problem and generated guesses (hypotheses). He constructed a checklist and obtained requisite information from a representative sample of cars. He analyzed the data thus collected, interpreted the results in the light of his hypotheses and reached conclusions.

You will notice in the example above that the researcher went through a sequence of steps which were in order and thus systematic. Secondly, the researcher did not just jump at the conclusions, but used a scientific method of inquiry in reaching at conclusions.   The two important characteristics of research are : it is systematic and secondly it follows a scientific method of enquiry

What is Research? Research is systematic, because it follows certain steps that are logical in order. These steps are: Understanding the nature of problem to be studied and identifying the related area of knowledge. Reviewing literature to understand how others have approached or dealt with the problem. Collecting data in an organized and controlled manner so as to arrive at valid decisions. Analyzing data appropriate to the problem. Drawing conclusions and making generalizations.

Why Study Research Methods? To understand the methods social scientists/business managers use to understand human behavior/solve business related problems; To learn to conduct studies as part of your academic training or job performance; To read and evaluate the research conducted by others.

Types of Research Fundamental Research, Basic Research or Pure Research Applied Research

Basic versus Applied Research Based on Purpose: Applied Research One is to solve a current problem faced by the manager in the work setting, demanding a timely solution. For example, a particular product may not be selling well and the manager might want to find the reasons for this in order to take corrective action. Such research is called applied research. Basic Research The other is to generate a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved. This is called basic research. It is quite possible that some organizations may later on apply the knowledge gained by the findings of such basic research to solve their own problems.

Cont… Thus, 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. 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.

Example For instance, a university professor maybe interested in investigating the factors that contribute to absenteeism as a matter of mere academic interest. After gathering information on this topic from several institutions and analyzing the data, the professor may identify factors such as inflexible work hours, inadequate training of employees, and low morale as primarily influencing absenteeism. Later on, a manager who encounters absenteeism of employees in his organization may use this information to determine if these factors are relevant to that particular work setting

MANAGERS Managers in a wide range of organizations with limited budgets face daunting challenges in competitive marketplaces. Their training and experience make it clear to them that to be successful, their strategies and tactics must emerge from a clear, in-depth understanding of their target markets, their competitors, and the environment in which they all operate. Yet these managers lack the resources to routinely hire the best researchers, contract for the latest databases and information services, or staff a large research department. This is true of thousands of managers in the private sector— the start-up innovator, the niche marketer, the neighborhood entrepreneur.

MANAGERS Successful managers are knowledgeable managers. They are aware of what they don’t know and resolve to find it out. They crave information. They devour it on the job and off the job. They always want to know more, and when they acquire new information, they use it effectively.

MYTHS OF BUSINESS RESEARCH “We know we need business information to be good managers, but how can we undertake it when we have virtually no budgets?” “If I did have the money to do research, how can I do it when I really don’t know much about statistics and sampling and computers?” “How dare I risk limited resources, not to mention my credibility with my boss, by doing research that I’m told all too often turns out to be a waste of time and effort?” “If I decide to go ahead, how can I work effectively with a research professional when I don’t really know what I want, what the researcher can do for me, or how I can tell good research from bad when it gets done?”

example Even those who believe research may be valuable in launching a new venture may still not embrace it enthusiastically. Take the case of an entrepreneur who had developed a new coated-peanut snack food and hired a researcher to help with initial marketing decisions. But he was “very suspicious of the whole thing. It all seemed like a lot of talk.” Yet when the researcher got the entrepreneur directly involved in the research process (an approach we advocate fervently), he became a believer. He was recruited to survey his patrons himself and found a large number of unexpected comments, including one likening the product to dog food. He subsequently reformulated the product and used research to decide on a distribution channel (supermarkets were not a good idea as this would require major advertising to build brand recognition), the most effective packaging (stackable bags), and the price ($3.25 for an eight ounce bag). Despite a considerable outlay, the entrepreneur felt that the research ultimately “changed my mind about how to sell the product.”

MYTHS OF BUSINESS RESEARCH MYTH 1: I am already doing enough research MYTH 2: Research is only for big decisions MYTH 3: Loosing Control MYTH 4: Business research is survey research MYTH 5: Business research is too expensive MYTH 6: Most research is a waste

Why managers should know about research? Being knowledgeable about research and research methods helps professional managers Identify and effectively solve minor problems in the work setting. Know how to discriminate good from bad research. Appreciate the multiple influences and effects of factors impinging on a situation.

Why managers should know about research? Take calculated risks in decision making. 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

BUSINESS RESEARCH Business research can be described as a systematic and organized effort to investigate a specific problem encountered in the work setting, that needs a solution. It comprises a series of steps designed and executed, with the goal of finding answers to the issues that are of concern to the manager in the work environment.

Internal Researchers Advantages Better acceptance from staff Knowledge about organization Would be an integral part of implementation and evaluation of the research recommendations.

Internal Researchers Disadvantages Less fresh ideas Power politics could prevail Possibly not valued as “expert” by staff

External Researchers Advantages Divergent and convergent thinking Experience from several situations in different organizations Better technical training, usually

External Researchers Disadvantages Takes time to know and understand the organization Rapport and cooperation from staff not easy Not available for evaluation and implementation Costs

Ethical Issues in Management Research Researcher’s responsibility Conduct research safely and sensibly Make sure that participants understand what they are taking part in, and how any data will be used Inform the organization in which the researcher is conducting the research about the nature of research, possible implications before carrying out the research Use acceptable convention while carrying out research

Ethical Issues in Management Research Common ethical issues - Put pressure on the participants to grant access to information Violate an individual’s right to privacy Possible deception of participants Fabrication of data set/ False data Alter or modify data Select only suitable data

Ethical Issues in Management Research Common ethical issues – Claim credit for the work done by others Not maintaining confidentiality and anonymity Report data without permission from the organization Post-study sharing of research results Publish the same paper in different journals without the permission of the editors

Ethical Issues in Management Research Some ethical principles – Honesty Honest reporting of data, results, methods and procedures, and publication status Integrity Act with sincerity and strive for consistency of thought and action Carefulness Keep good records of research activities and avoid careless errors and negligence

Ethical Issues in Management Research Some ethical principles – Legality Know and obey relevant laws and institutional and governmental policies Non-discrimination Avoid discrimination against anybody on the basis of sex, race, ethnicity, language, or other factors

Ethical Issues in Management Research Some ethical principles – Confidentiality Protect confidential communications, such as personnel records, correspondence, trade secrets, patient records Respect for intellectual property Honor patents, copyrights, and other forms of intellectual property Do not use data and other documents without permissions Give credit where credit is due

Class Activity Given the situations below, (a) discuss with reasons, whether they will fall into the category of Applied or Basic research, and (b) for scenario 1 explain, with reasons, who will conduct the research. Scenario 1 Companies are very interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For example, Coca-Cola has announced that it wants to buy China Huiyuan Juice Group in an effort to expand its activities in one of the world’s fastest-growing beverage markets. Such acquisitions are claimed to “work miracles.” However, given the volatility of the stock market and the slowing down of business, many companies are not sure whether such acquisitions involve too much risk. At the same time, they also wonder if they are missing out on a great business opportunity if they fail to take such risk. Some research is needed here!

Class Activity Given the situations below, (a) discuss with reasons, whether they will fall into the category of Applied or Basic research, and (b) for scenario 1 explain, with reasons, who will conduct the research. Scenario 2 Reasons for Absenteeism A university professor wanted to analyze in depth the reasons for absenteeism of employees in organizations. Fortunately, a company within 20 miles of the campus employed her as a consultant to study that very issue.  Scenario 3 Effects of Service Recovery on Customer Satisfaction A research scientist wants to investigate the question: What is the most effective way for an organization to recover from a service failure? Her objective is to provide guidelines for establishing the proper "fit" between service failure and service recovery that will generalize across a variety of service industries.