3 RESEARCH METHODOLOGY

This research is an exploratory research. Research design is a conceptual structure in which it is

conducted. It constitutes the blueprint for the collection, measurement analysis of data. The
quality of the project work depends on the methodology adopted for the study. Research
methodology is a way to systematically solving the research problems allotting procedures,
steps of plans. It explains the various steps that are generally adopted by the researcher in
studying the research problem along with logic behind them. In simple words research
methodology means the way in which we would complete our the prospected task.
Methodology is the systematic, theoretical analysis of the body of methods and principles
associated with a branch of knowledge. Research methodology is the specific procedures or
techniques used to identify, select, process and analyse information.

3.1 RESEARCH PROBLEM

A strong banking sector is important for flourishing economy. The failures of the banking sector
may have an adverse impact on other sectors. The skill for working capital is somewhat unique
and novel, through the goals are to make an efficient use of funds for minimizing the risk of loss
to attain project objective. It involves the deciding upon the amount and composition of current
assets and how to finance these assets. Working capital management is not a simple one. It
enables an enterprise to start and conduct its operations. Working capital requirements is
estimated under optimistic assumptions, but what the expectations come true, the firm may be
confronted with the difficult situation.

The optimum working capital investment to be determined by decision on the level of capacity
utilization. We have human and natural resources in abundance but our capital resources are
limited and arresting the pace of development , storage of funds for working capital has caused
many businesses to fail and in many cases has restarted their growth.

Working capital which is concerned with short term financial decision, have been relatively
neglected in the literature of finance. From the bankers point of view, it is working capital gap(
Total current assets – Total current liabilities excluding bank borrowings) .This is actually
needed by a borrower for working capital. It is the successful play with finance traders that
generally decides the fortune of any business enterprise.

3.2 RESEARCH DESIGN

A research design is the set of methods and procedures used in collecting and analyzing
measures of the variables specified in the problem research. The design of a study defines the
study type (descriptive, correlation, semi-experimental, experimental, review, meta-analytic) and
sub-type (e.g., descriptive-longitudinal case study), research problem, hypotheses, independent
and dependent variables, experimental design, and, if applicable, data collection methods and a
statistical analysis plan. A research design is a framework that has been created to find answers
to research questions.
 There are many ways to classify research designs. Nonetheless, the list below offers a number of
useful distinctions between possible research designs. A research design is an arrangement of
conditions or collection.

 Descriptives (e.g., case-study, naturalistic observation, survey)

 Correlational (e.g., case-control study, observational study)
 non-experimental (e.g., field experiment)
 Experimental (experiment with random assignment)(quasi-experiment)
 Review (literature review, systematic review)
 Meta-analytic (meta-analysis)
Grouping
The choice of how to group participants depends on the research hypothesis and on how the
participants are sampled. In a typical experimental study, there will be at least one
"experimental" condition (e.g., "treatment") and one "control" condition ("no treatment"), but the
appropriate method of grouping may depend on factors such as the duration of measurement
phase and participant characteristics:

 Cohort study
 Cross-sectional study
 Cross-sequential study
 Longitudinal study
In a good experimental design, a few things are of great importance. First of all, it is necessary to
think of the best way to operationalize the variables that will be measured, as well as which
statistical methods would be most appropriate to answer the research question. Thus, the
researcher should consider what the expectations of the study are as well as how to analyse any
potential results. Finally, in an experimental design, the researcher must think of the practical
limitations including the availability of participants as well as how representative the participants
are to the target population. It is important to consider each of these factors before beginning the
experiment. Additionally, many researchers employ power analysis before they conduct an
experiment, in order to determine how large the sample must be to find an effect of a given size
with a given design at the desired probability of making a Type I or Type II error.
Non-experimental research designs
Non-experimental research designs do not involve a manipulation of the situation, circumstances
or experience of the participants. Non-experimental research designs can be broadly classified
into three categories. First, in relational designs, a range of variables are measured. These
designs are also called correlation studies because correlation data are most often used in the
analysis. Since correlation does not imply causation, such studies simply identify co-movements
of variables. Correlational designs are helpful in identifying the relation of one variable to
another, and seeing the frequency of co-occurrence in two natural groups (See correlation and
dependence). The second type is comparative research. These designs compare two or more
groups on one or more variable, such as the effect of gender on grades. The third type of non-
experimental research is a longitudinal design. A longitudinal design examines variables such as
performance exhibited by a group or groups over time. See Longitudinal study.
3.3 SAMPLING

Sampling methods are the ways to choose people from the population to be considered in a
sample survey. Samples can be divided based on following criteria.
 Probability samples - In such samples, each population element has a known
probability or chance of being chosen for the sample.
 Non-probability samples - In such samples, one can not be assured of having known
probility of each population element.

Probability sampling methods

Probability sampling methods ensures that the sample choosen represent the population
correctly and the survey conducted will be statistically valid. Following are the types of
probability sampling methods:
 Simple random sampling - This method refers to a method having following properties:
o The population have N objects.
o The sample have n objects.
o All possible samples of n objects have equal probability of occurence.
One example of simple random sampling is lottery method. Assign each population
element a unique number and place the numbers in bowl.Mix the numbers throughly. A
blind-folded researcher is to select n numbers. Include those population element in the
sample whose number has been selected.
 Stratified sampling - In this type of sampling method, population is divided into groups
called strata based on certain common characteristic like geography. Then samples are
selected from each group using simple random sampling method and then survey is
conducted on people of those samples.
 Cluster sampling - In this type of sampling method, each population member is
assigned to a unique group called cluster. A sample cluster is selected using simple
random sampling method and then survey is conducted on people of that sample cluster.
 Multistage sampling - In such case, combination of different sampling methods at
different stages. For example, at first stage, cluster sampling can be used to choose
clusters from population and then sample random sampling can be used to choose
elements from each cluster for the final sample.
 Systematic random sampling - In this type of sampling method, a list of every member
of population is created and then first sample element is randomly selected from first k
elements. Thereafter, every kth element is selected from the list.
Non-probability sampling methods
Non-probability sampling methods are convenient and cost-savvy. But they do not allow to
estimate the extent to which sample statistics are likely to vary from population parameters.
Whereas probability sampling methods allows that kind of analysis. Following are the types of
non-probability sampling methods:
 Voluntary sample - In such sampling methods, interested people are asked to get
involved in a voluntary survey. A good example of voluntary sample in on-line poll of a
news show where viewers are asked to participate. In voluntary sample, viewers choose
the sample, not the one who conducts survey.
 Convenience sample - In such sampling methods, surveyor picks people who are easily
available to give their inputs. For example, a surveyer chooses a cinema hall to survey
movie viewers. If the cinema hall was selected on the basis that it was easier to reach
then it is a convenience sampling method.

3.4 DATA COLLECTION

Data collection is the process of gathering and measuring information on variables of interest, in
an established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes. The data collection component of research is common to all
fields of study including physical and social sciences, humanities, business, etc. While methods
vary by discipline, the emphasis on ensuring accurate and honest collection remains the same.

Examples of data collection problems that require prompt action include:

 errors in individual data items

 systematic errors
 violation of protocol
 problems with individual staff or site performance
 fraud or scientific misconduct

SOURCE OF DATA

PRIMARY DATA

 Primary data is data that is collected by a researcher from first-hand sources, using methods like
surveys, interviews, or experiments. It is collected with the research project in mind, directly
from primary sources.
 The term is used in contrast with the term secondary data. Secondary data is data gathered
from studies, surveys, or experiments that have been run by other people or for other research.
 Typically, a researcher will begin a project by working with secondary data. This allows time to
formulate questions and gain an understanding of the issues being dealt with before the more
costly and time consuming operation of collecting primary data.

 
 SECONDARY DATA
Secondary data is the data that have been already collected by and readily available from other
sources. Such data are cheaper and more quickly obtainable than the primary data and also may
be available when primary data cannot be obtained at all.

3.5 LIMITATIONS OF THE STUDY

 Due to heavy work the external guide cannot spend more time for interaction, as time
uses limiting factors a detailed study is not possible.
 In some cases participants refused to speak against their organizations..
 Shortage of time.
 4. DATA ANALYSIS AND INTERPRETATION

1. CUSTOMERS EVALUATION

Type Total Percentage

Proprietorship 6 60%
Partnership 4 40%
Company - -
Total 10 100

INTERPRETATION

According to this table 60% of the clients are proprietorship, 40% are partnership. Thus we can
say that clients of the PNB consist of smaller concerns which are proprietorship, partnership in
nature.
2 NATURE OF BUSINESS

Type Total Percentage

Manufacturing - -
Services 02 20%
Trading 06 60%
Other 02 02
Total 10 100

INTERPRETATION

The above table shows that the nature of business carried by the clients. According to the table
60% are trading concerns, 0% are manufacturing, 20% are services, whereas 20% is in other
business. Thus we can conclude that majority is of those who are engaged in trading.