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What is Research? Research is the process of finding solutions to a problem after a

thorough study and analysis of the situational factors.

Managers in organizations constantly engage themselves instudying and analyzing issues and hence are involved in someform of research activity as they make decisions at theworkplace

Sometimes managers make good decisions and the problemgets solved.

Sometimes managers make poor decisions and the problempersists.

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What is Research? The difference between making good decisions and

poor decisions, lies in how managers go about the

decision-making process. Good decision making fetches a yes answer to

the following questions:

1. Do managers identify where exactly the problem

lies?2. Do they correctly recognize the relevant factors in

the situation needing investigation?

3. Do they know what types of information are to begathered and how?

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

information so collected and draw appropriate

conclusions to make the right decisions.5. Do they know how to implement the results

of this process to solve the problem?

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What is Research? This is the essence of research and to

be successful manager it is important

for you to know how to go aboutmaking the right decisions by beingknowledgeable about the various steps

involved in finding solutions toproblematic issues.

This is what our text book is all about.

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The Excitement of Research Modern technology has made research an exciting

and a relatively smooth process.

Personal computer with any means to an Internetconnection places one within easy reach ofknowledge of what is happening in the globalmarkets and how the world economy is impacting on

business. Decision making is merely a process of choosing

from among alternative solutionsto resolve aproblem and research helps to generate viable

alternatives for effective decision making.

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Business Research Business research can be described as a

systematic and organized effort to investigate

a specific problem encountered in the worksetting, that needs a solution.

Business research comprises a series ofsteps designed and executed, with the goal

of finding answers to the issues that are ofconcern to the manager in the workenvironment.

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Business Research Steps of business research:

To know where the problem areas exist in the

organization.To identify as clearly and specifically as

possible 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.

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Research and the Manager The managers encounter big and small

problems on a daily basis, which they

have to solve by making the rightdecisions.

In business, research is usually

conducted to resolve problematic issuesin the areas of accounting, finance,management, and marketing.

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Research and the Manager Problems in Accounting:

- Budget control systems

- Inventory costing methods

- Depreciation

- Time-series behavior of quarterly earnings

- Transfer pricing

- Taxation methods

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

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Research and the Manager Problems in Management:

- Employee attitudes and behaviors

- Human resources management- The impact of changing demographics on managemen

practices

- Production operations management

- Strategy formulation

- Information systems

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Research and the Manager Problems in Marketing:- Product image

- Advertising- Sales promotion- Product distribution- Product packaging

- Product pricing- After-sales service- Consumer preferences- New product development

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Types of Business Research Research can be undertaken for two

different 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 beoccurred in organizations. This is calledbasic research or fundamental research. Itis also known as pure research.

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Examples ofApplied

Research Apples iPod sales increased by 200% from

2001 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?

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Examples of Applied Research

Xerox is insular and isnt ready for the

increasingly competitive, high-tech

world. 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%.

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Examples of Applied Research

In the Xerox situation, it needs to lookinto the efficacy of the analog

technology used in copiers and examinewhat should be done to increaseefficiency and promote its sales.

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Examples ofBasic Research

University 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.

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Examples ofBasic Research

These findings later become usefulfor application in businesssituations.

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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 ofgenerating knowledge and understanding ofphenomena and problems that occur in

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

steps of systematic inquiry to arrive atsolutions to problems.

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Managers and Research

Managers with knowledge of researchhave an advantage over those without.

With the ever-increasing complexity ofmodern organizations, and theuncertainty of the environment they

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

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Knowledge of research and problem-solving process helps managers to

identify problem situations before theyget out of control.

Minor problems can be solved by the

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

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The manager who is knowledgeable aboutresearch can interact effectively with the

researchers. Knowledge about research process also helps

managers to become discriminating recipientsof the research findings presented, and to

determine whether or not the recommendedsolutions are appropriate for implementation.

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When managers understand theresearch reports about their

organizations handed to them byprofessionals, they will be equipped totake intelligent, educated, calculatedrisks with known probabilities attached

to the success or failure of theirdecisions.

Research then becomes a useful

decision-making tool.

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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)

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Internal Versus ExternalConsultants/Researchers

Such a department within theorganization serves as the internal

consultant if it face certain problemsand seek help.

This unit would be useful in several

ways

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Advantages of InternalResearchers

The internal researchers have better chance of beingreadily accepted by the employees.

The team would require much less time tounderstand the structure, the philosophy and climate

and work system of the organization. They would be available for implementing their

recommendations after the research findings areaccepted.

The internal team might cost considerable less thanthe external team.

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Disadvantages of InternalResearchers

They might have less fresh ideas and perspectives thatmight be needed to correct the problems.

There is scope for certain powerful groups in theorganization to influence or misrepresent certain facts.

There is a possibility that the internal researchers are notperceived as experts by the management, and hencetheir recommendations do not get the consideration and

attention they deserve. Certain organizational biases of the internal research team

might make the findings less objective and less scientific.

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Advantages ofExternalConsultants

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.

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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.

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Ethics and Business Research

Ethics in business research refers to acode of conduct of behavior while conducting

research. Ethical conduct applies to the organization

and the members that sponsor the research,

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

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Ethics and Business Research

The 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.

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