Chapter # 1

Introduction to Research
Definition of Business Research

► Organized, systematic, databased,

critical, objective, scientific inquiry or
investigation into a specific problem,
undertaken with the purpose of
finding answers or solutions to it.
Research and The Managers

► ACCOUNTING
► Budget control systems, Inventory costing methods,
Transfer pricing.
► FINANCE
► Mergers and acquisitions, The behavior of the stock
exchange.
► MANAGEMENT RESEARCH
► Employee attitudes and behaviors, Information systems.
► MARKETING RESEARCH
► Advertising, Pricing, Consumer preferences.
Type of Business Research

► APPLIED RESEARCH
► Research done with the intention of applying the
results of the findings to solve specific problems
currently being experienced in the organization.

► BASIC OR FUNDAMENTAL RESEARCH

► Research done chiefly to enhance the understanding
of certain problems that commonly occur in
organizational settings, and seek methods of solving
them.
 Knowledge About Research
Methods Helps Managers to:

► Identify and effectively solve problems in work setting.

► To discriminate good from bad research.
► Aware of the multiple influences and effects of factor
impinging on situation.
► Take calculated risks in decision making.
► Prevent possible vested interests from exercising their
influence in a situation.
► Combine experience with scientific knowledge while
making decisions.
► Hire researcher and consultant effectively.
The Manager and The
Consultant-Researcher

► The roles and expectations of both parties

are made explicit,
► Relevant philosophies and value systems of
the organization are clearly stated, and
constraints, if any, communicated,
► There is good rapport established with the
researchers, and between the researchers
and the employees in the organization, so
that the latter cooperate fully with the
researchers.
Internal versus External
Consultant/Researchers

► Advantages/disadvantages of internal
consultants

► Advantages/disanvantages of internal
consultants
Advantages of Internal Consultants

► The internal team would stand a better

chance of being rapidly accepted by
the employees in the subunit where
research needs to be done,
► They would require much less time to
understand the structure, the
philosophy, climate, the functioning,
and work systems of the organization,
Advantages of Internal Consultants
(cont.)

► They would be available for implementing

their recommendations after the research
findings are accepted,
► The internal team might cost considerably
less than an external team for the
department enlisting help in problem
solving.
Disadvantages of Internal
Consultants

► The internal team may quite possibly

fall into a stereotypical way of
looking at the organization and its
problems,
► There is scope for certain powerful
coalitions in the organization to
influence in internal team to
conceal, distort, or misrepresent
certain facts,
Disadvantages of Internal
Consultants (cont.)

► There is also a possibility that even the

most highly qualified internal research
teams are not perceived as “experts” by
the staff and management,
► Certain organizational biases of the
internal research team might in some
instances make the findings less
objective and hence less scientific.
Advantages of External Consultants

► The external team can draw on a wealth of

experience from having worked with
different types of organizations that have
had the same or similar types or problems,
► The external teams, especially those from
established research and consulting firms,
might have more knowledge of current
sophisticated problem-solving models
through their periodic training programs.
Disadvantages of External
Consultants

► The cost of hiring an external research team is

usually high and is the main deterrent, unless
the problems are very critical,
► In addition to the considerable time required
for the external team to understand the
organization to be researched, they seldom
get a warm welcome,
► The external team also charges extra for their
assistance in the implementation and
evaluation phases.
Ethics and Business Research

► Ethics in business research refers to a code of

conduct or expected societal norm of
behavior while conducting research.

► The observance of ethics begins with the

person instituting the research, who should
do so in good faith, pay attention to what
the results indicate, and surrendering the
ego, pursue organizational interests rather
than self-interests.