DR NEENA

CHAPTER-1
DR DEEPAK CHAWLA

INTRODUCTION
TO
BUSINESS RESEARCH
SONDHI

RESEARCH CONCEPTS AND

Research

Research is the process of finding solutions to a

problem after a thorough study and analysis of the
situational factors.
Research means search of knowledge.

“a careful investigation or inquiry specially through

search for new knowledge”

Redman and Mory- “Systematized effort to gain new

knowledge”
Research
Research

Management Research

Business Research
Research Definition

According to Clifford Woody- “Research comprises

Defining problem, Formulating hypothesis or
suggested solutions Collecting, Organizing, and
evaluating data, making ductions and research
conclusions to determine whether they fit the
formulating hypothesis”
 SLIDE 1-1
What is Management
research?
DR NEENA

Management research is an unbiased, structured,

and sequential method of enquiry, directed towards
a clear implicit or explicit business objective. This
DR DEEPAK CHAWLA

enquiry might lead to validating existing postulates

or arriving at new theories and models.
SONDHI

RESEARCH CONCEPTS AND

 Business Research
Business research can be described as a systematic and
organized effort to investigate a specific problem
encountered in the work setting, which needs a solution.

1.7
 Definition of Business
Research
We can define business research as an organized,
systematic, data-based, critical, objective, scientific
inquiry or investigation into a specific problem,
undertaken with purpose of finding answers or solutions
to it.

1.8
Need for Research
Managers in organizations constantly engage
themselves in studying and analyzing issues and
hence are involved in some form of research activity
as they make decisions at the workplace
Sometimes managers make good decisions and the
problem gets solved.

Sometimes managers make poor decisions and the

problem persists.

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 be

gathered and how?
Modern technology has made research an exciting
and a relatively smooth process.

Personal computer with any means to an Internet

connection places one within easy reach of knowledge
of what is happening in the global markets and how
the world economy is impacting on business.
Objective of Research
To Explore a phenomenon or achieve new insights into
it.
To discover the characteristics of a particular
individual, situation or group.
To Examine the frequency with which something
occurs or with which it is associated with something
else.
To test a hypothesis of a casual relationship between
variables.
 SLIDE 1-2

Types of research
DR NEENA
DR DEEPAK CHAWLA
SONDHI

RESEARCH CONCEPTS AND

 SLIDE 1-3

Types of research
DR NEENA

Basic research : the basic premise is the need to

KNOW and the concern is primarily academic in
nature. To generate a body of knowledge about how to
solve problems that could be occurred in organizations.
DR DEEPAK CHAWLA

This is called basic research or fundamental research. It is

also known as pure research.
SONDHI

RESEARCH CONCEPTS AND

Types of Research

Applied research: Solution or action oriented

research, that is contextual and practical in approach.
To solve a current problem faced by the manager
in the work setting. Such research is called applied
research.
 SLIDE 1-4

Types of research
DR NEENA

Exploratory research is loosely structured and the basic

premise is to provide direction to subsequent, more
structured method of enquiry.
DR DEEPAK CHAWLA
SONDHI

RESEARCH CONCEPTS AND

Types of Research

Conclusive research is structured and definite in

orientation. These studies are usually conducted to
validate formulated hypotheses and specified
relationships.
 SLIDE 1-5

Exploratory vs Conclusive Research

DR NEENA
DR DEEPAK CHAWLA
SONDHI

RESEARCH CONCEPTS AND

 SLIDE 1-6

Conclusive research
DR NEENA

Descriptive research: The main goal of this type of

research is to describe the data and characteristics
about what is being studied.
DR DEEPAK CHAWLA

Causal research: Explores the effect of one or more

variables on other variable(s), with reasonable level of
certainty by controlling the impact of other
SONDHI

influencing variables.

RESEARCH CONCEPTS AND

 SLIDE 1-7

The research process

DR NEENA
DR DEEPAK CHAWLA
SONDHI

RESEARCH CONCEPTS AND

 SLIDE 1-8

The research process

DR NEENA

The management decision problem

Defining the research problem

DR DEEPAK CHAWLA

Formulation of the working hypotheses

Construction of the research proposal

SONDHI

RESEARCH CONCEPTS AND

 SLIDE 1-9

The research process

DR NEENA

Formulating the research design

DR DEEPAK CHAWLA

Sampling considerations

Collecting the data for the study

SONDHI

Data analysis and interpretation of findings

RESEARCH CONCEPTS AND

Deduction & Induction Process
Deduction and Induction
Deduction and Induction are the two methods of
drawing conclusions.
 a. Deduction: Deduction is a process of arriving at a
conclusion by applying known facts or principles to a
specific situation.
 b. Induction: Induction is a process in which certain
observations are used to logically establish a general
proposition from which we draw a conclusion
 Research Approaches
Deduction process
“It is a process by which we arrive at a reasonable
conclusion by logical generalization of known facts”
Exam : High performers
Induction Process
“It is process where we observe certain phenomenon
and on this basis arrive at conclusion”
Exam: Schools, factories
© Research Methodology, Third Edition by Ranjit Kumar (2011, SAGE)
© Research Methodology, Third Edition by Ranjit Kumar (2011, SAGE)
Business Research Application
Marketing
Finance
Human resources
Production & Operations
 SLIDE 1-10

Research applications in marketing

DR NEENA

Market & consumer analysis

Product research

Pricing research
DR DEEPAK CHAWLA

 Promotional research

Place research
SONDHI

RESEARCH CONCEPTS AND

 The Ten Most Common Market Research
Activities
Directly
Activity Percentage of companies doing relevant to
activity* NPD

Determination of market characteristics 97

Measurement of market potential 97

Market share analysis 97

Sales analysis 92
Studies of business trends 91
Short range forecasting 89
Competitive product studies 87
Long range forecasting 87

Pricing studies 83

Testing existing products 80

* based on research activities of 599 companies in the US

Why Conduct Market Research

 The product must appeal to the customer (however widely

defined)
 - Timely market research can help you mould the product to the
consumer’s need/wants
 - Market research tend to point out successes and failures
before products are launched “for real”
 - As a result, it can save money and time
 SLIDE 1-11

Research applications in finance

DR NEENA

Asset pricing, capital markets and corporate finance

 Financial derivatives and credit risk modeling research

DR DEEPAK CHAWLA

Market-based accounting research

Auditing and accountability

SONDHI

Other areas: financial forecasting, behavioural finance,

volatility analysis

RESEARCH CONCEPTS AND

 SLIDE1-12
Research applications in
human resources
DR NEENA

Training & development studies

Selection and staffing studies

Performance appraisal–design and evaluation

DR DEEPAK CHAWLA

Organization planning and development

Incentive and benefits studies

SONDHI

Emerging areas–critical factor analysis, employer branding

studies
RESEARCH CONCEPTS AND
 SLIDE 1-13

Research applications in
production & operations management
DR NEENA

Operation planning and design

Demand forecasting and demand estimation

Process planning
DR DEEPAK CHAWLA

Project management and maintenance effectiveness

studies
Logistics and supply chain-design and evaluation
SONDHI

Quality estimations and assurance studies

RESEARCH CONCEPTS AND

 Managers and research
Managers with knowledge of research have an advantage over
those without Knowledgeable about research and research
methods helps professional managers to:
1. Identify and effectively solve minor problems in the work setting
2. Know how to discriminate good from bad research
3. Appreciate and be constantly aware of the multiple influences
and multiple effects of factors impinging on a situation
4. Take calculated risks in decision making, knowing full well the
probabilities associated with the different possible outcomes.
5. Prevent possible vested interests from exercising their influence
in a situation.
6. Related to hire researchers and consultants more effectively.
7. Combine experience with scientific knowledge while making
decision.

1.37
The Manager and the consultant- researcher

Managers often need to engage a consultant to

study some of the more complex, time consuming
problems that they encounter

Internal consultants / researchers

External consultants / researchers

1.38
 Internal consultants / researchers

Some organizations have their own consulting or

research department, which might be called the
Management services department,
Organization and methods department,
Research & Development department

1.39
 Internal consultants / researchers
Advantage of internal consultants / Disadvantage of internal

researchers consultants / researchers

1. Accepted by the employees 1. Fall into a stereotyped way

2. Less time to understand the of looking
structure, work system 2. Scope of certain powerful
3. They are available to 3. Not perceived as “ experts”
implement their 4. Biases of the internal
recommendations, and deal research team
with any bugs
4. Less cost

1.40
 External consultants /
researchers
Advantage of external consultants / Disadvantage of external consultants /

researchers researchers

1. Wide range of experience 1. The cost is high

2. Have more knowledge of 2. Much time to understand the
current sophisticated problem organization
– solving 3. Additional fees for
implementation

1.41
 The Managers – researcher
relationship

During their careers, it often becomes necessary for

managers to deal with consultants, so while hiring
researchers or consultants the manager should make
sure that:
1. The roles and expectations of both parties are made
explicit.
2. Related philosophies and value systems of organization
are clearly stated and constraints, if any, are
communicated.
3. A good rapport is established with the researchers, and
between the researchers and the employees in the
organization, enabling the full cooperation of the latter.
1.42
 Knowledge about research and
managerial effectiveness

Managers are responsible for the final outcome by

making the right decisions at work. This is greatly
facilitated by research knowledge

1.43
 SLIDE1-14

Criteria for research

DR NEENA

 MUST have: a clearly stated research purpose/ objective

 MUST have: a sequential plan of execution

 MUST have: a logical and explicitly stated justification for the

selected methods
DR DEEPAK CHAWLA

 MUST have: an unbiased and neutral method of conduct and

reporting
 MUST have: complete transparency and ethical conduction of
SONDHI

the research process

 MUST have: provision for being reliable & replicable

RESEARCH CONCEPTS AND

DR NEENA

END OF CHAPTER
DR DEEPAK CHAWLA
SONDHI

RESEARCH CONCEPTS AND