BUSINESS RESEARCH

Business research is 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. Various Steps (1) First step is to know where the problem areas exist in the organisation. (2) To identify an clearly and specifically as possible the problems to be studied and resolved. (3) Gather data, analyse data generate information. (4) Determine factors that are associated with the

problem. (5) Identify solutions

DECISION MAKING AND RESEARCH

Decision making is merely a process of choosing from among alternative solutions to solve a problem and research helps to generate viable alternatives for effective decision making. WHY MANAGERS SHOULD LEARN RESEARCH Research is simply the process of finding solutions to a problem after a thorough study and analysis of the situational factors. Managers in organizations constantly engage themselves in studying and analyzing issues and hence involved in some form of research activity as they make decision at work place. To be a successful manager, it is important for you to know how to go about making right decision by knowledgeable about the various steps involved in finding solutions to problematic issues in or interrelated among the areas of accounting, finance, management and marketing.

MANAGER AND RESEARCH

Research knowledge helps managers Solve problem in work setting

Take calculated risk in decision making.

Prevent possible vested interests from exercising their influence

Deal with hired researchers and consultants more effectively

Combine experience with scientific knowledge in decision making Know how to discriminate good from bad research

Commonly researched areas in Business

Accounting Budget control system practices and procedures Inventory costing methods Accelerated depreciation Time series behavior of quarterly earnings

Finance The operations of financial institutions Optimum financial ratios Mergers and acquisitions Leveraged buyouts The behaviour of the stock exchanges

Management Employee activities and behaviours Human resources management Impact of Changing demographics on management practices Production operations management Strategy formulation
Marketing Issues pertaining to product image Advertising Sales promotion Distribution Packaging Pricing After sales service Consumer preferences New product development

Types of Business Research

(1) Applied Research (2) Basic Research /fundamental or pure research Applied research Research done with the intension of applying the results of the findings to solve problem currently being experienced in the organization is called Applied Research. Eg: Manager wants to know why a particular product to selling well. Basic Research Research undertaken to generate a body of knowledge to enhance understanding of certain problems that commonly occur in organizational settings and seek methods of solving them is called basic research. Eg: University professors may be interested to investigate the factors that contribute to absenteeism as a matter of academic interest.

The Manager and the Consultant / Researcher A manager often needs to engage a consultant to study complex and time- consuming problems. How to locate a consultant / Researcher 1. Consulting firms listed in telephone directories 2. Professors in educational institutions who do organisational consulting can be contacted.

Credential of experts in consulting firms can be obtained and identify the suitable consultants.

Manager should make sure while hiring researchers or consultants

(1) Roles and expectation of both parties are made explicit (2) Relevant philosophies and value systems of the organization are clearly stated and constraints if any, communicated. (3) A good rapport is established with the researcher and between researchers and the employees in the organisation, enabling the full cooperation.

Types of Consultants (1) Internal Consultant / Researcher (2) External Consultant / Researcher Internal consultant Organisations have their own consulting or Research departments which may be called as management services department. This department serves as internal consultant to the organizational problems. External Consultant Consultants who have been hired from outside the organisation for studying organisational problems are called external consultants

Advantages of Internal Consultants Better acceptance by the employees Team require less time to understand the structure, philosophy, climate and functioning and problems. They are available for implementation after the findings are accepted Cost is less compared to hiring external consultants. Disadvantages of Internal Consultants Possibility of stereo typed way of looking at the organisation and its problems. Employees can influence the internal team Internal staff may not be perceived as an expert by the staff and management. Hence recommendations do not get the attention they deserve organisatilonal biases of the internal team might in some instance make the finding less objective and consequently less scientific

Advantages of External consultants Wide range of experience of the external consultants enable them to think both divergently and convergently rather those hurry to an instant solution on the basis of apparent facts in the situation External team consultant have more knowledge of current sophisticated problem solving methods attained through periodical training programmes. Employees cannot influence the external consultant Suggestions get more attention by the management and employees Disadvantages of External Consultant Cost of hiring is high More time is required by the external consultant to understand the organization and its problems They charge additional fees for their assistance in implementing and execution process.

Research knowledge and Managerial effectiveness

Managers are responsible for final outcome by making decisions. This is facilitated by research knowledge. A business is controlled by various external and internal factors. Research knowledge helps managers to identify important factors and their extent of influence. Research reports of external consultants prepared with sophisticated tools like simulation and models can be effectively implemented if the manager has good knowledge in research In rapidly changing business environment research knowledge helps to enhance decision making skills of the manager.