1. BUSINESS RESEARCH METHODS The Role of Business Research

2. Module-1  Contents  Concept of research and its application in various functions of Management.  Pure and Applied research,  Quantitative and Qualitative approach,  Scientific Method in research.  Problems encountered by researcher & Precautions for the researcher.

3. Research is one of the ways to find answers to questions. Literally, it is re-search. re means again, anew and search means to examine closely and carefully, to test and try or to probe. Together they mean a careful, systematic, patient study and investigation in some field of knowledge, undertaken to establish facts or principles. Research study implies that the process: Is being undertaken within a framework of set philosophies and academic discipline. Uses procedures, methods and techniques that have been tested for their validity and reliability. Is designed to be unbiased and objective. Research Defined

4. Business Research Business research is defined as the systematic and objective process of generating information for aid in making business decisions. The definition suggest that: – Research information is neither intuitive nor haphazardly gathered. – Business research must be objective Detached and impersonal rather than biased – It facilitates the managerial decision process for all aspects of a business.

5. Business research- Definition  A process of determining, acquiring, analyzing, synthesizing, and disseminating relevant business data, information, and insights to decision makers in ways that mobilize the organization to take appropriate business actions that, in turn, maximize business performance.

6. Information Reduces Uncertainty “It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.” Artemus Ward

7. 1-7 Characteristics of Good Research Clearly defined purpose Detailed research process Thoroughly planned design High ethical standards Limitations addressed Adequate analysis Unambiguous presentation Conclusions justified Credentials

8. Application of Research in Business  General Business Conditions and Corporate Research  Financial and Accounting Research  Management and Organizational Behavior Research  Sales and Marketing Research  Information Systems Research  Corporate Responsibility Research "The secret of success is to know something nobody else knows. " Aristotle Onassis

9. Pure/ Basic vs. Applied Quantitative vs. Qualitative Descriptive vs. Analytical Conceptual vs. Empirical Cross sectional vs. Time series Business Research Types

10. Pure Research Attempts to expand the limits of knowledge or to verify the acceptability of a given theory. Not directly involved in the solution to a immediate or pragmatic problem. Examples – Is executive success correlated with high need for achievement? – Are members of highly cohesive work groups more satisfied than members of less cohesive work groups? – Do consumers experience cognitive dissonance in low- involvement situations?

11. Applied Research  Research undertaken to answer questions about specific problems or to make decisions about a particular course of action or policy decision.  Examples:  Should McDonalds add Italian pasta dinners to its menu?  Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?

12. Qualitative vs. Quantitative Quantitative research includes designs, techniques and measures that produce discrete numerical or quantifiable data. Data analysis is mainly statistical (deductive process). It is characterized by: causal- comparative, correlational, experimental and descriptive research. Qualitative research deals with designs techniques and measure that do not produce discrete numerical data. It involves extensive narrative data in order to gain insights into phenomena. Data analysis includes the coding of the data and production of verbal synthesis (inductive process). Examples include historical research, ethnographic research, participant observational research and the case study.

13. Scientific Method The scientific method is the result of recognizing that personal and cultural beliefs influence our perceptions and interpretations of natural phenomena. Through the use of standard procedures and criteria, it is possible to minimize those influences when developing a theory. The term scientific method denotes the principles that guide scientific research and experimentation, and the philosophical bases of those principles. Scientific methods involve techniques and procedures used to analyze empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions. Both pure and applied research employ scientific method to answer questions. Use of SM in applied research assures objectivity in research. The difference in techniques of basic and applied research is largely a matter of degree rather than substance.

14. Scientific Method The scientific method of inquiry is characterized by the following convictions: that the process must be logical and objective to reduce bias in methods and interpretation of results. that the process should be systematic in that it ought to involve certain standard procedures. enquiry should be conducted through a process of systematic observation that can be verified by experience (empiricism). There should be careful recording, documenting, archival and sharing of all data and methodology (full disclosure) to make it available for scrutiny by other researchers, thereby allowing them to verify results by attempting to reproduce them. It aims at generalizing findings to larger groups by discovering general principles that will be helpful in predicting future occurrences. This calls for careful sampling procedures to ensure that the sample is representative of the larger group. Parsimony: Extreme care in use of resources and efforts.

15. AssessrelevantexistingknowledgeFormulate concepts & Propositions StatementofHypotheses Designresearch Acquireempiricaldata Analyze & evaluatedataProvideexplanation- state new problem The Scientific Method: An Overview

16. Deductive Reasoning  The logical process of deriving a conclusion from a known premise or something known to be true.  We know that all managers are human beings.  If we also know that John Smith is a manager,  then we can deduce that John Smith is a human being.

17. Inductive Reasoning  The logical process of establishing a general proposition on the basis of observation of particular facts.  All managers that have ever been seen are human beings;  therefore all managers are human beings.

18. Managerial value of Research The prime managerial value of business research is that it reduces uncertainty by providing information that improves the decision making process. Decision making process involves following interrelated stages. – Identifying problems and opportunities – Diagnosis and assessment – Selecting and implementing a course of action – Evaluating the course of action: includes Evaluation research and Performance monitoring research

19. Managerial value of Research Evaluation Research: is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives. Performance-monitoring Research: Research that regularly provides feedback for evaluation and control; Indicates things are or are not going as planned; Research may be required to explain why something “went wrong”

20. When to Conduct Business Research A manager faced with two or more possible courses of action faces the initial decision of whether or not to conduct research. The determination of need for research centers on:  Time constraints  Availability of data  Nature of the decision  Benefits versus costs

21. Is sufficient time available before a managerial decision must be made? Is the infor- mation already on hand inadequate for making the decision? Is the decision of considerable strategic or tactical importance? Does the value of the research information exceed the cost of conducting research? Conducting Business Research Do Not Conduct Business Research Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs Yes No Determining When to Conduct Business Research

22. Value versus Costs  Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

23. Value Decreased certainty 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 erroneous research results Value Should Exceed Estimated Costs

24. The Business Research Process 1. Formulation of Research Problem 2.Conceptualizi ng Research Design 3. Developing Research Proposal 4. Data Collection and Field Work 5. Processing and Analyzing the data 6. Interpretation of the Findings 7. Report Writing

25. 1. Formulation of Research Problem  Review of Literature  Defining the Problem (Gap Identification & Finalizing research Objectives)  Identifying the variables  Constructing the hypothesis (If any) (In case of applied research, continuous consultation with the client is required)

26. 2. Conceptualization of Research Design  Research nature: type, scope, environment  Sampling Design  Data Collection Design  Data collection methods  Data Sources  Instrument Design  Data Analysis Design

27. 3. Developing Research Proposal 4. Data Collection and Field Work Selecting and training field workers, Data entry operators Consideration for ethical issues

28. 5. Data processing and Analysis Data Coding, Editing, Tabulation Analysis using predefined tools 6. Interpretation of the findings 7. Report Writing

29. Problems encountered by researchers in India Lack of a scientific training (expertise) in research methodology Insufficient interaction between the researchers/ research institutions like university research departments on one side and the users like business establishments, government departments on the other side. Lack of trust between research agencies and users. Lack of coordination and sharing of research between different agencies. There does not exist a code of conduct for researchers Difficulty of adequate and timely secretarial assistance. Unsatisfactory Library management, functioning and inadequate / un-timely availability of published resources.