 Research can be undertaken for two different purposes.

One is to solve a current

problem faced by the manager in the work setting, demanding a timely solution. For
example, a particular product may not be selling well and the manager might want to find
the reasons for this in order to take corrective action. Such research is called applied
research.
 The other is to generate a body of knowledge by trying to comprehend how certain
problems that occur in organizations can be solved. This is called basic research.

 Thus, research done with the intention of applying the results of the findings to
solve specific problems currently being experienced in the organization is called applied
research.

 Research done chiefly to enhance the understanding of certain problems that

commonly occur in organizational settings, and seek methods of solving them, is called
basic or fundamental research. It is also known as pure research. The findings of such
research contribute to the building of knowledge in the various functional areas of
business. Such knowledge generated is usually later applied in organizational settings for
problem solving.