Introduction to Research - Basic Vs.

Applied Research
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 or pure research.

DIRECTIONS: Should the leader should request a basic or applied research

Scenario 1: Reasons for absenteeism

A university professor noticed that many companies face dispirited employees. Thus, the
professor wanted to analyze in depth the reasons for absenteeism of employees in
organizations. Fortunately, a company within 20 miles of the campus agreed to sponsor
her research to study that very issue so to generate a good understanding of the issue.

Scenario 2: Effects of service recovery on customer satisfaction

A research scientist wants to investigate the question: What is the most effective way for
an organization to recover from a service failure? Her objective is to provide guidelines
for establishing the proper “fit” between service failure and service recovery that will
generalize across a variety of service industries.

Scenario 3: To acquire or not to acquire: that is the question

Nowadays, companies are very interested in acquiring other firms, even when the
businesses operate in totally unrelated realms of business. For example, a German asphalt
company announced that it is to buy China Huainan Juice Group in an effort to expand its
activities in one of the world’s fastest growing beverage markets. Such acquisitions are
claimed to “work miracles.” However, given the instability of the stock market and the
slowing down of business, many companies are not sure whether such acquisitions
involve too much risk. At the same time, they also wonder if they are missing out on a
great business opportunity if they fail to take such risks. Therefore, research is needed to
clarify this perspective in business for future acquisition decisions/opportunities.

Scenario 4: Should the ingredients be changed?

Globally, colas account for more than 50% of all sodas sold. The challenge for the $187
billion soft drink industry is giving consumers in developed markets the sugary taste they
want without the excessive calories. Concerns about obesity and health have led to nine
years of dropping U.S. soda consumption. The soda giants can’t rely on existing diet
versions of colas, as consumers do not believe in the product and its ingredients anymore.
Critics have blamed the ingredients – rightly or not – for everything from weight gain to
cancer. Diet Coke is losing U.S. sales at 7% a year, almost double the rate of decline of
normal cola sales overall. So Coke and Pepsi are turning to research to save their cola
businesses. “If you can crack the perfect sweetener, that would be huge,” says Howard
Telford, an analyst at researcher Euro-monitor International.
Scenario 5: Effects of service recovery on customer satisfaction
As a clerical employee in a bank, Sarah had observed that her colleagues, though
extremely knowledgeable about the banking system, policies, and practices (clearly
evident from their discussions as they processed applications from customers), were
expending very little effort to improve the efficiency and effectiveness of the bank in the
area of customer relations and service. They took on the minimum amount of work, took
long tea and lunch breaks, and seemed unmotivated in their dealings with the customers
and the management.

Sarah always used to think what a huge waste it was for talented employees to be lazy
rather than to work hard and enjoy their work. When she left the bank, she did her PhD
thesis research on: ‘Job Involvement, or the ego investment of people in their jobs’. The
conclusion of her investigation was that the single most important contributory factor to
job involvement is the fit or match between the nature of the job and the personality
characters of the people engaged in performing it. For example, challenging jobs allowed
employees with high capabilities to get job-involved; and people oriented employees got
job involved with service activities that required the usage of interpersonal skills. Sarah
then understood why her intelligent bank employees were not job-involved or satisfied in
the routine jobs that did not require the use of their abilities or skills.

Later on in Sarah’s career, she joined the Internal Research Team of a Fortune 500
company; she applied her Phd. knowledge to solve problems of motivation, job
satisfaction, and job involvement in the organization.

Scenario 6: Keeping up with the Advanced Technology

Xerox is insular and isn‘t ready for the increasingly competitive, high- tech world. Xerox
still relies on old-fashioned and slow-selling analog copiers for more than half its revenue
and despite its double-digit growth in digital products and services, the sales didn't rise
much - its sales rose just 4%.

Scenario 7: Chaotic Management

Oxford Health Plans Inc. saw trouble progressing. It was a company in distress
experiencing computer problems. Turnover among Oxford‘s programmers was unusually
high and processing of client claims became a big nightmare. Clients started canceling
their policies; claims for surgery and such were way up; Methods of payments and
insurance were not convenient or suitable for clients‘ medical expenses, on a percentage
basis, was close to 85%.