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Chapter 8

Data Collection Methods:

Observation

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LEARNING OBJECTIVES Observation

1. Define observation and discuss how
observation may help to solve business
problems.
2. Demonstrate the ability to make an informed
decision on an appropriate type of
observational method for a specific study.
3. Explain the issues related to participant
observation and structured observation.
4. Discuss the advantages and disadvantages of
observation.
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▪ Observation involves going into ‘the field’, - the
factory, the supermarket, the waiting room, the
office, or the trading room - watching what
workers, consumers, or day traders do, and
describing, analyzing, and interpreting what one
has seen.
▪ Natural technique to collect data on actions and
behavior
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Observation
▪ Best suited for research requiring non‐self‐report
descriptive data; that is, when behavior is to be
examined without directly asking the
respondents themselves.
▪ Observational data are rich and uncontaminated
by self‐report bias.
▪ Time consuming and challenging
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Key Dimensions Characterizing Type of
Observation
1. Controlled versus Uncontrolled Observational
Studies
2. Participant versus Non-Participant Observation
3. Structured versus Unstructured Observational
Studies
4. Concealed versus Unconcealed observation
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Examples
▪ Shadowing a Wall Street broker engaged in his
daily routine.
▪ Observing in-store shopping behavior of
consumers via a camera.
▪ Sitting in the corner of an office to observe how
a merchant bank trader operates.
▪ Working in a plant to study factory life.
▪ Studying the approach skills of sales people
disguised as a shopper.
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Controlled versus Uncontrolled
Observational Studies
▪ Controlled observation occurs when
observational research is carried out under
carefully arranged conditions(artificial setting)
▪ Uncontrolled observation is an observational
technique that makes no attempt to control,
manipulate, or influence the situation (natural
setting)
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Concealed versus Unconcealed

Natural setting observation

▪ https://www.youtube.com/watch?v=BHA3Ypj ▪ Concealed observation → the members of the

dqZs social group under study are not told that they are
being investigated.
▪ A primary advantage → the research subjects are
not influenced by the awareness that they are
being observed.
▪ Reactivity→ observer effects on situation
▪ Ethical drawbacks (violate the principles of informed
consent, privacy, and confidentiality)
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Participant versus Non-Participant

Hawthorne effect
Observation

▪ Lighting → increases productivity ▪ Nonparticipant observation, the researcher is

▪ https://www.youtube.com/watch?v=mV9Wj8ohT never directly involved in the actions of the
0k actors, but observes them from outside the
▪ https://www.youtube.com/watch?v=W7RHjwmV actors’ visual horizon, for instance via a one‐way
Ghs mirror or a camera.
▪ Participant observation, the researcher
gathers data by participating in the daily life of
the group or organization under study.
▪ used in case, ethnographic, and grounded theory
studies

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Participant Observation Participant Observation

▪ The participatory aspect: Participant observation combines the processes of

➢ Passive participation (e.g., sit in the corner of office…)
➢ Moderate participation → occasionally interact
➢ Active participation→ engage almost in everything
➢ Complete participation→ become a member of the
group
▪ To what extent should I participate?
participation and observation.
▪ Pure observation seeks to remove the
researcher from the observed actions and
behavior; the researcher is never directly
involved in the actions and behavior of the group
under study.
▪ Pure participation has been described as “going
native”

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Complete participation Complete participation

▪ Complete participation→ the researcher lives or
works with the subjects under study and tends to
assume a pre‐established role (for instance, the
role of coworker).
▪ The researcher may conceal that she is an
observer, behaving as naturally as possible and
seeking to become an accepted member of the
social group
▪ (-) difficult to abandon the role of complete
participant __“going native”
▪ (-) may result in a fading research perspective
and an increased likelihood of biased research
findings.
▪ (-) There are important ethical problems with
concealed complete participation.

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Participant Observation What to Observe?

▪ The observation aspect What to observe in descriptive observation stage:

1. Obtaining permission ▪ Space
2. Finding a ‘sponsor’ ▪ Objects
3. Establishing rapport ▪ Actors
▪ Feelings
▪ Events
Spradly, 1980

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What to Observe? Discussion

▪ Focused and selective observation stage: ▪ Under which circumstances would you prefer
✓Look for a story line observation as a method to collect data over
✓Sort out regular from irregular activities other methods of data collection such as
✓Look for variation in the storyline interviews and questionnaires?
✓Look for negative cases or exceptions
✓Develop a plan for systematic observation if
needed

DeWalt and DeWalt, 2002

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Discussion Discussion
▪ Under which circumstances would you prefer observation as a method to collect data ▪ Another advantage of observation is that is possible to observe certain
over other methods of data collection such as interviews and questionnaires? groups or individuals -- for example, very young children and extremely busy
▪ The answer to this question is closely related to the advantages of observation. One of executives -- from whom it may be otherwise difficult to obtain information.
the main advantages of observation is its directness. Whereas interviews and
Children can be observed to investigate their interests and attention span
questionnaires elicit verbal responses about actions and behavior from the subjects
(which merely allows behavior to be inferred from these verbal responses),
with various stimuli, such as their involvement with different toys. Such
observation allows the researcher to gather behavioral data without asking questions. observation would help toy manufacturers, child educators, day-care
People can be observed in their natural work environment or in the lab setting, and administrators, and others deeply involved in or responsible for children’s
their activities and behaviors or other items of interest can be noted, recorded, development, to design and model ideas based on children’s interests, which
analyzed, and interpreted. are more easily observed than traced in any other manner. The data
▪ Apart from the activities performed by the individuals under study, their movements, obtained through observation of events as they normally occur are generally
work habits, the statements made and meetings conducted by them, other – more reliable and free from respondent bias.
environmental -- factors such as layout, work-flow patterns, the closeness of the
seating arrangement, and the like, can also be noted. In observational studies, it is
also relatively easy to discern situational factors such as the weather (hot, cold, rainy),
the day of the week (midweek as opposed to Monday or Friday), and other factors that
might have a bearing on, for example, productivity, the sales of a product, traffic
patterns, absenteeism, and the like. These factors can be recorded and meaningful
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patterns might emerge from this type of data.

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Good field notes: Structured Observation

▪ Use exact quotes when possible; ▪ Structured observational study→ observer has a
▪ Use pseudonyms to protect confidentiality; predetermined set of categories of activities or
▪ Describe activities in the order in which they occur; phenomena planned to be studied.
▪ Provide descriptions without inferring meaning;
▪ Generally quantitative in nature.
▪ Include relevant background information to situate the
event;
▪ Separate one ’ s own thoughts and assumptions from
what one actually observes;
▪ Record the date, time, place, and name of researcher on
each set of notes.
▪ Schensul, schensul, and lecompte ( 1999 ).

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Unstructured Observation Structured Observation

▪ Unstructured observational study→ it is possible ▪ Structured observation is focused in nature, as it

that the observer has no definite ideas of the
particular aspects that need focus. Observing
events as they take place may also be a part of
the plan as in many other forms of exploratory
and qualitative research.
✓ the observer will record practically everything that is
observed.
✓ Unstructured observational studies are hallmark of
qualitative research.
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looks selectively at predetermined phenomena
▪ Different levels of structure (e.g., less systematic
like semi‐structured observation)
▪ An example: mystery shoppers – trained
researchers who accurately record employee
behavior using checklists and codes → service
performance
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Coding Schemes Standard Coding Schemes

▪ Coding schemes contain predetermined

categories for recording what is observed.
✓ Focus
✓ Objective
✓ Ease of use
✓ Mutually exclusive (no overlap) and collectively
exhaustive (covers all possibilities)

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Coding Schemes Discussion

Valid and reliable coding scheme: ▪ What are the advantages and disadvantages of
▪ Validity indicates the extent to which observation?
observations accurately record the behavior in
which you are interested.
▪ Reliability refers to the consistency of
observations, usually whether two (or more)
observers, or the same observer on separate
occasions, observing the same event attain the
same results.
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Advantages and disadvantages of Advantages and disadvantages of

observation observation

▪ Advantages:
▪ Directness. Observation allows the researcher to
gather behavioral data without asking questions.
(interviews and questionnaires elicit verbal
responses about actions and behavior from the
subjects)
▪ People can be observed in their natural work
environment or in the lab setting, and their
activities and behaviors or other items of interest
can be noted, recorded, analyzed, and
interpreted.
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Advantages:
✓ Observe certain groups of individuals – for
example, very young children and extremely busy
executives
Disadvantages:
▪ Reactivity (the extent to which the observer
affects the situation under study) could be a major
threat to the validity of the results of observational
studies, because those who are observed may
behave differently during the period of the study.
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Advantages and disadvantages of
observation
Disadvantages:
▪ Observer biases. E.g.,research perspective fades
or even disappears completely, because of “gone
native.” Observation of the happenings day in and
day out, over extended periods of time, could also
introduce biases in the recording of the
observations.
▪ To minimize observer bias →training on how to
observe and what to record + establish
interobserver reliability_ dividing the number of
agreements among the trainees by the number of
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agreements and disagreements
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Advantages and disadvantages of
observation
Disadvantages:
▪ The cognitive thought processes of individuals
cannot be captured. In other words, it is very
difficult to identify reasons behind behavior of the
subjects under study. Observation is therefore
often used as a technique to collect data that
complement data obtained by other techniques
such as interviews.
▪ Time consuming and expensive
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