RESEARCH METHODS FOR BUSINESS

Written by UMA SEKARAN

Why do we make research
 We make research because we want to know more about ourself and the world around us.  The basic purpose of research in every discipline is to teach students to work systematically and for them to learn critically to analyse issues before acting upon them. However, research is essential for understanding even basic everyday phenomena that need to be handled by individuals and organizations.  e.g If you want to buy a car, how do you make a research?
Which car satisfies our needs Compare prices at different dealers Can we purchase car from second hand market so on....

therefore. makes life easier. the food can be heated at that temperature in the practise.  Kuhn.The research.  e. 1970 said that the research can be considered as a process of problem solving for a specific problem under specific conditions.g Through systematic research it was found that serious stomach and digestion problems were caused by the salmonella bacteria. Research also shows that the salmonella bacteria did not survive at a temperature of 800 C or higher so when it is suspected the bacteria. Then we analyse all these information to make a judgement about the right solution to our problem.Why do we make research  we really cannot take decisions on important issues unless we investigate more deeply the relevant information and gathering more information on the particular aspect we are interested in. . not only in business but also in general.

which consists upon: Problem identification Searching of factors involved in problem Determination of relationship among the factors Solution of the problem In simple words we can say that research is an organized inquiry that is carried out to provide information for solution of the problem. Research is the process of finding solutions to a problem after a thorough study and analysis of the situational factors. .WHAT IS RESEARCH ? Research is a process.

OR The research that provides information to the mangers to solve the specific problems is called business research . .BUSINESS RESEARCH Business research is an organized systematic. data based. critical scientific investigation into a specific problem faced by the today’s business with the purpose of finding answers and solutions to it.

Focus on all aspect and do not avoid any point for critical analysis and there must be logic behind the story positive and negative aspects should be considered.CHARACTERISTICS OF BUSINESS RESEARCH There must be no deficiency. Analyze the intensity through data collection. It must be logical based. There must be particular objective or purpose .

 Transfer pricing  Taxation methods  Operations of financial institution  Optimum financial ratios  Mergers and acquisitions  Others .Financial and Accounting Research  Budget control system  Inventory costing method  Appreciation and depreciation  Time series behavior of quarterly early.

Management and Organizational Behavior Research Research studies regarding to employees attitude and behavior Management strategy Information system Human resource management Impact of demographic changes on management practices .

Sales and Marketing Research  Advertising  Sales promotions  Distributions  Packing  New product development  Consumer preferences  Market pricing and others .

TYPES OF BUSINESS RESEARCH Applied research Basic research .

which is concerned to solve the current problems faced by the managers in work setting. Example: A particular product may not be selling well and the manager might want to find the reason for this in order to take a corrective action. is called applied research. . demanding a timely solution.Types of Business research Applied Research Research. So research conducted by him will be called applied research.

The finding of such research contributes to the building of knowledge in the various functional areas of business. Such knowledge generated is usually later applied in organizations for problem solving.  It is also known as pure research.Basic Research or Pure Research  Is to generate a body of knowledge by trying to comprehend how certain problems that occur in organizations can be solved. .

on the basis of this report managers use this information to solve their problem of employee absenteeism . After gathering information on this topic from different institutions and analyzing the data the professor identify the factors which primarily influence absenteeism and later on.Example: A university professor may be interested in investigating the factors that contributes to employee’s absenteeism at work place.

. • Success results are used by managers/sponsors. Applied • Apply to areas of interest • Constrained to demands • Research is quick  may not meet high standards. impact on other scientists.Basic • Basic knowledge. • Conducted when a decision must be made about a specific real-life problem • Freedom. • Success results published. • Not directly involved in the solution to a pragmatic problem. • Take more time .

Risk.Need of Research for Managers Knowledge of research is more important for today’s manager to handle the following situations: (Solve problems. Decision making tool. Competition. Appreciate and be constantly aware of the multiple influences and multiple effects of factors imposing on a situation. . Investment Hire researchers and consultants more effectively) Identify and effectively solve minor problems in the work setting.

knowing full well the probabilities associated with the different possible outcomes Prevent possible vested interests from exercising their influence in a situation. Relate to hired researchers and consultants more effectively. .Take calculated risks in decision making. Combine experience with scientific knowledge while making decisions.

Medium size organization may not have big R & D departments instead having one or two researcher. where their own researcher work. . They conduct applied and pure research in their own organizations.Internal and External Researcher Internal Researchers: Some large organizations have their own research and development department (R & D dept). But small organization cannot afford the cost of internal researchers.

•Their results about a problem may be biased . •Their own people will not perceive them as experts.Advantages •Easy acceptability by the employees while conducting a research. •Availability to check the implemented recommendations Cost effective Disadvantages •They might be stereotyped having no fresh ideas. •Less time is required to understand the culture and structure.

Companies will hire the out side researcher to solve their most complicated problems. . These firm have experiences and qualified specialist researchers to conduct research.External Researcher Well-established research firms are available now a day to conduct research.

Advantages •They have plenty of experience of research work with different organizations •Their research will be unbiased Their solutions will more credible Disadvantages •Take more time •Not aware about the norms and culture of the company •The cost of external researchers will be very high .

Values and constraints are stated. . management and employees.MANAGER RESEARCHER RELATIONSHIP • Manager should make sure while hiring researchers or consultants that :• Roles and expectations of both parties are clear. • Org. • Good relations are buildup among researchers.

– Business Colleges – Internet – Yellow Pages – Magazines – Business segments of news papers .HOW TO LOCATE AND SELECT A RESEARCHER – Many research firms are available who provide their services.

Determining When to Conduct Business Research Time Constraints Is sufficient time available before a managerial decision must be made? Yes Availability of Data Is the information already on hand inadequate for making the decision? No Yes Nature of the Decision Is the decision of considerable strategic or tactical importance? Yes Benefits vs. Costs Does the value of the research Yes Conducting information Business exceed the cost Research of conducting research? No No No Do Not Conduct Business Research .

Value Should Exceed Estimated Costs Costs Value •Decreased uncertainty •Increased likelihood of a correct decision •Improved business performance and resulting higher profits •Research expenditures •Delay of business decision and possible disclosure of information to rivals •Possible inaccurate research results .

25 .  A reader have to ensure that the results of a research did not provide wrong implementation(s) about the topic.  Researhers should have a moral responsibility to explain and find answers to their questions honestly and accurately.  Ethics or moral principles in a reserach are serious and inevitable issues.Research and Ethics  Ethics?  Ethics are moral principles and values that influence the way a researcher(s) conducts their research activities.  Researhers have to point out the strengths of their methods and models but also have to inform us about their weakness and reliability of their results.

Neuman) . Zikmund) Social Research Methods (by Lawrence D.Reference studies Research methods for business (by Uma Sekaran) Business Research Methods (by William G.