001 research methods for business

8/3/2019 001 Research Methods for Business

1/41

1

Research Methods forBusiness


2/41

INTRODUCTION TO

RESEARCH


3/41

3

TOPICS DISCUSSEDDefinition of Research

Applied and Basic ResearchWhy Managers Should Know About ResearchManagers and the Consultant-Relationship

The Manager- Researcher relationship Internal Versus External Researchers and

Consultants

Knowledge About Research and ManagerialEffectiveness Ethics and Business Research


4/41

4

What is Research ?Research is the process of findingsolutions to a problem after a thoroughstudy and analysis of the situationalfactors.


5/41

5

What is Research?Managers in organizations constantlyengage themselves in studying andanalyzing issues and hence are involvedin some form of research activity asthey make decisions at the workplace.


6/41

6

What is Research?Sometimes managers make gooddecisions and the problem gets solved.Sometimes managers make poordecisions and the problem persists.The difference between making gooddecisions and poor decisions, lies inhow managers go about the decision-making process.


7/41

7

What is Research?Good decision making fetches a yes answer to the following questions:

1. Do managers identify where exactlythe problem lies?

2. Do they correctly recognize the

relevant factors in the situationneeding investigation?3. Do they know what types of

information are to be gathered andhow?


8/41

8

What is Research?4. Do they know how to make use of the

information so collected and drawappropriate conclusions to make theright decisions.

5. Do they know how to implement theresults of this process to solve theproblem?


9/41

9

What is Research?This is the essence of research and tobe successful manager it is importantfor you to know how to go aboutmaking the right decisions by beingknowledgeable about the various steps

involved in finding solutions toproblematic issues.


10/41

10

The Excitement of ResearchModern technology has made researchan exciting and a relatively smooth

process.Personal computer with any means toan Internet connection places onewithin easy reach of knowledge of whatis happening in the global markets andhow the world economy is impacting onbusiness.


11/41

11

The Excitement of ResearchDecision making is merely a process of choosing from among alternative solutions to resolve a problem andresearch helps to generate viablealternatives for effective decision

making.


12/41

12

Business ResearchBusiness research can be described as asystematic and organized effort to investigate

a specific problem encountered in the work setting, that needs a solution.Business research comprises a series of steps designed and executed, with the goalof finding answers to the issues that are of concern to the manager in the work environment.


13/41

13

Business ResearchSteps of business research:To know where the problem areas exist in the

organization.To identify as clearly and specifically aspossible the problems that need to be studiedand resolved.

Gather information, analyze the data, anddetermine the factors that are associatedwith the problem and solve it by taking thenecessary corrective measures.


14/41

14

Research and the ManagerThe managers encounter big and smallproblems on a daily basis, which theyhave to solve by making the rightdecisions.In business, research is usuallyconducted to resolve problematic issuesin the areas of accounting, finance,management, and marketing.


15/41

15

Research and the ManagerProblems in Accounting:

- Budget control systems- Inventory costing methods- Depreciation- Time-series behavior of quarterly

earnings- Transfer pricing- Taxation methods


16/41

16

Research and the Manager

Problems in Finance:- The operations of financial institutions- Optimum financial ratios- Mergers and acquisitions- Leveraged buyouts- Intercorporate financing- Yields on mortgages- The behavior of the stock exchange


17/41

17

Research and the Manager

Problems in Management:- Employee attitudes and behaviors- Human resources management- The impact of changing demographics

on management practices- Production operations management- Strategy formulation- Information systems


18/41

18

Research and the ManagerProblems in Marketing:

- Product image-

Advertising- Sales promotion- Product distribution- Product packaging- Product pricing- After-sales service- Consumer preferences- New product development


19/41

19

Types of Business ResearchResearch can be undertaken for twodifferent purposes:

1. To solve a current problem faced by themanager in the work setting. Such researchis called applied research .

2. To generate a body of knowledge about

how to solve problems that could haveoccurred in organizations. This is calledbasic research or fundamental research . Itis also known as pure research .


20/41

20

Examples of Applied Research

Apples iPod sales increased by 200% from2001 to 2008. but the sales decreased by

6% in 2009. What is the reason for thisdecrease?The question is: what will Apple do about thisproblem?


21/41


Xerox is insular and isn t ready for theincreasingly competitive, high-techworld. Xerox still relies on old-fashionedand slow-selling analog copiers formore than half its revenue and despite

its double-digit growth in digitalproducts and services, its sales rose just4%.

21


22/41


In the Xerox situation, it needs to look into the efficacy of the analogtechnology used in copiers and examinewhat should be done to increaseefficiency and promote its sales.

22


23/41

23

Examples of Basic ResearchUniversity professors engage in basic research in aneffort to understand and generate more knowledgeabout various aspects of businesses, such as:

- How to improve the effectiveness of informationsystems.

- How to integrate technology into the overall strategicobjectives of an organization.

- How to increase the productivity of the employees.- How to increase the effectiveness of small

businesses.


24/41

24

Examples of Basic Research

These findings later become usefulfor application in businesssituations .


25/41

25

Distinction Between Applied andBasic Research

The main distinction between applied andbasic business research is:

- Applied research is specifically aimed atsolving a currently experienced problem.

- Basic research has a broader objective of generating knowledge and understanding of phenomena and problems that occur in

various organizational settings.- Both types of research follow the same

steps of systematic inquiry to arrive atsolutions to problems.


26/41

26

Managers and Research

Managers with knowledge of researchhave an advantage over those without.With the ever-increasing complexity of modern organizations, and theuncertainty of the environment they

face, the management of organizationalsystems has become one of constanttrouble shooting in the work place.


27/41

27


Knowledge of research and problem-solving process helps managers toidentify problem situations before theyget out of control.Minor problems can be solved by the

manager, major problems wouldwarrant the hiring of outsideresearchers or consultants.


28/41

28


The manager who is knowledgeable aboutresearch can interact effectively with the

researchers.Knowledge about research process also helpsmanagers to become discriminating recipientsof the research findings presented, and todetermine whether or not the recommendedsolutions are appropriate for implementation.


29/41

29


When managers understand theresearch reports about their

organizations handed to them byprofessionals, they will be equipped totake intelligent, educated, calculatedrisks with known probabilities attachedto the success or failure of theirdecisions.Research then becomes a useful

decision-making tool.


30/41

30

Internal Versus ExternalConsultants/Researchers

Internal Consultants or Researchers:Some organizations have their own research

department, which might be called:- The management services department- The organization and methods department

- R & D (research and developmentdepartment)


31/41

31

Internal Versus ExternalConsultants/Researchers

Such a department within theorganization serves as the internalconsultant if it face certain problemsand seek help.This unit would be useful in several

ways


32/41

32

Advantages of InternalResearchers

The internal researchers have betterchance of being readily accepted by theemployees.The team would require much less timeto understand the structure, the

philosophy and climate and work system of the organization.


33/41

33

Advantages of InternalResearchers

They would be available forimplementing their recommendationsafter the research findings areaccepted.The internal team might cost

considerable less than the externalteam.


34/41

34

Disadvantages of InternalResearchers

They might have less fresh ideas andperspectives that might be needed tocorrect the problems.There is scope for certain powerfulgroups in the organization to influence

or misrepresent certain facts.


35/41

35

Disadvantages of InternalResearchers

There is a possibility that the internalresearchers are not perceived as

experts by the management, andhence their recommendations do notget the consideration and attention theydeserve.Certain organizational biases of theinternal research team might make thefindings less objective and less

scientific.


36/41

36

Advantages of ExternalConsultants

They have a wealth of experience fromhaving worked with different types of organizations that have had the sameor similar types of problems.They might have more knowledge of

current sophisticated problem-solvingmodels through their periodic trainingprograms.


37/41

37

Disadvantages of ExternalConsultants

The cost of hiring an external research teamis usually high.

They need a considerable time to understandthe organization to be researched.They seldom get a warm welcome, nor areaccepted by employees.They charges additional fees for theirassistance in the implementation andevaluation phases.


38/41

38

Ethics and Business Research

Ethics in business research refers to acode of conduct of behavior while conductingresearch.Ethical conduct applies to the organizationand the members that sponsor the research,

the researchers who undertake the research,and the respondents who provide them withthe necessary data.


39/41

39

Ethics and Business ResearchThe members that sponsor the researchshould do it in good faith, pay attention towhat the results indicate, and pursueorganizational rather than self-interest.Ethical conduct should also be reflected inthe behavior of the researchers who conductthe investigation, the participants whoprovide the data, the analysts who providethe results, and the entire research team thatpresents the interpretation of the results andsuggests alternative solutions.


40/41

To be continued

40


41/41

INTERNET EXERCISES

Use the Web search engines Google and Yahoo . Search using the keywords business research . Prepare abrief report telling what you found andhow it differed on the different searchengines.

001 research methods for business

Documents