Research Methods for Managers

Prof. George Mathew

B.Sc., B.Tech, PGDCA, PGDM, MBA
Phone: 9447798852
Email: mathewaiim@gmail.com

ALLAMA IQBAL INSTITUTE OF

MANAGEMENT
TRIVANDRUM
 Business Research

Introduction to business research

 1 Introduction to Research

 1.1What is research?

Research is the process of finding

solutions to a problem after a
thorough study and analysis of
the situational factors.
1.2.What is business research?

Business Research is defined

as the systematic and objective
process of gathering, recording
and analyzing data for aid in
making business decisions
What is business research?
 Research provides the needed
information that guides managers to
make informed decisions to
successfully deal with problems.
 The information provided could be the
result of a careful analysis of data
gathered firsthand or of data that are
already available (in the company).
 Basic Research and Applied
Research.
1.Applied research
Research undertaken to answer
questions about specific problems or
to make decisions about a particular
course of action or policy decisions.
It is to solve a current problem faced
by the manager in the work setting,
demanding a timely solution
2.Basic research (fundamental, pure)
Basic or pure research is the
research that is intended to expand
the boundaries of knowledge itself
or to verify the acceptability of a
pure theory.
It is to generate a body of knowledge by trying to
comprehend how certain problems that occur in
organizations can be solved.
The findings of such research contribute to the
building of knowledge in the various functional
areas of business.
 Research Process
1. Formulating a Research Problem
2. Conceptualization of Research Design
3. Constructing an instrument for data
Collection
4. Selecting a Sample
5. Writing a research Proposal
6. Collecting Data
7. Processing Data
8. Writing a research report
 Research Process

Formulating Conceptualization Constructing an

a Selecting a
of Research instrument
Research Sample
Design for data
Problem Collection

Step 1
Step 2 Step 4
Step 3

Writing a
Writing a research
Collecting Data Processing Data
research report
Proposal

Step 7 Step 8
Step 5
Step 6
 Research and Managers
Business Research helps managers in
decision making by providing both process
and tools needed to reduce risk.
Business Research is a systematic inquiry
that provides information to guide
managerial decisions.
It is a process of planning, acquiring, analyzing,
and disseminating relevant data, information, and
insight to decision makers in ways that mobilize
the organization to take appropriate actions that, in
turn, maximize business performance.
 Research and Managers
Students preparing to manage any function, need training
in a disciplined process for conduction an inquiry of a
management dilemma, the problem or opportunity that
requires a management decision. Some of the factors which
stimulate management research methods :
 Explosive growth and influence of internet
 Stakeholders demanding greater influence
 More vigorous competition
 More government intervention
 More complex decisions
 Maturing of management as a group of disciplines
 Greater computing power and speed
Planning Drives Business Research
Understanding the relationship between business
research and other information is critical for
managerial decision making related to
organizational mission, goals, strategies, and
tactics.
A Business Intelligence System(BIS) is designed
to provide manger with ongoing information
about events and trends in the technological,
economic, political and legal, demographic,
cultural, social, and, competitive arenas. Such
information is complied from a variety of sources.
 Business Researchers

Internal Research Department

 Consumer goods and services
Producers
 Industrial goods and services
Producers
 Media Companies
 Wholesale distributers
 Retail Distributers
 Internal Research Suppliers
Due to limitation of budget, equipment,
facilities, and expertise reasons, the trend in
industry is not to staff large internal
research departments.
In poor economic times, many firms
eliminate their internal research operations
as such services are expendable or are
readily available from external suppliers.
 External Research Suppliers
1. Business Research Firms
 Full-Service Research  Specialist Research Firms
Firms  Methodology Specialists
 Custom Researchers  Other Specialists
 Proprietary Methodology  Syndicated Data Providers
Researchers
 External Research suppliers
2. Communication 3. Consultants 4. Trade
Agencies Associates
 Advertising  Marketing General
agencies Consultants Business
 Public Relations
 General Business
Agencies
Business Specialist
 Sales Promotion
Consultants Research
Agencies
Specialists
 Direct Marketing
Agencies
 Research Firms
 Full service researchers include some of the
largest research firms in the world and
some of the smallest.
Full service firms are often involved in
research planning for their clients from the
moment of discovery of the management
dilemma.
 Custom Researcher crafts a research
design unique to the decision makers
dilemma.
 Custom Researchers
“Ad-hoc research” or “custom-designed
research” are often used to describe
custom full-service research firms. A
custom researcher crafts a research
design unique to the decision makers
dilemma.
Proprietary Methodology Researchers
Proprietary Methodology is a research program or
technique that is owned by a single firm.
Specialist Research Firms
They establishes a specialty in one or several
different arenas such as:
Methodology,
Process,
Industry,
Participant group, or
Geographic region
 Research Consultants
 Business Consultants offer a wide range of
services at the strategic and tactical levels. All are
involved in doing extensive secondary data
research for their clients.
 They are major influencers in research design, of
both custom research and the selection of
prosperity models. They are also involved in
interpretation of results.
 Consultants conducts both qualitative (eg. Focus
groups and expert interviews) and quantitative
studies (usually through surveys) on knowledge,
attitudes, opinions, and motivations.
 Trade Associates
Trade Associates have their purpose to promote,
educate, and lobby for the interests of their
members. They are in the following categories:
 General Business
 Business Specialist
 Research Specialists
Characteristics of a Good Research
1. Purpose Clearly defined
2. Research Process Detailed
3. Research design thoroughly planned
4. High Ethical Standards Applied
5. Limitations Frankly Revealed
6. Analysis adequate for decision maker’s
needs
7. Findings presented unambiguously
8. Conclusions Justified
9. Researchers Experience Reflected
Types of Business Research
1. Exploratory Research
2. Descriptive Research
3. Causal Research
 Exploratory Research
Exploratory Research is the
research conducted to clarify and
define the nature of the problem.
Usually, exploratory research is
conducted with the expectation that
subsequent research will be required to
provide conclusive evidence
Eg. Study of employees need for child
care, conducted among small number of
employees which leads to further studies.
 Descriptive Research
Descriptive Research is the research
designed to describe characteristics of a
population or phenomenon.
Descriptive Research seeks to determine the answer to
who, what, when, where, and how questions.
Descriptive Research often helps segment and target
markets. Accuracy is of paramount importance in
descriptive research.
Eg. Study of characteristics of consumers who
purchase organic food products
Diagnostic analysis is used to clarify research findings,
such as explanations respondents give for behavior or
attitude.
 Causal Research
Causal Research is the research
conducted to Identify cause and effect
relationships among variables when the
research problem has already been
narrowly defined.
Casual Research attempts to establish
that when we do one thing, another thing
will follow.
Eg. Training and productivity
Stages of Business Research
1. Identifying problems or
opportunities
2. Diagnosing, and assessing
problems or opportunities
3. Selecting and implementing a
course of action
4. Evaluation a course of Action
Why is it important for managers to know
about research?
 Solve problems
 Decision making tool
 Competition
 Risk
 Investment
 Hire researchers and consultants
more effectively
 Major Topics for research in
Business
1. General Business Conditions and
Corporate Research
2. Financial and Accounting Research
3. Management and Organizational
Behavior Research
4. Sales and Marketing Research
5. Information System Research
6. Corporate Responsibility Research
Business Research in the 21st century

Two Major trends in Business

1. Increased Globalization
2. Rapid Growth of Internet and
Information Technology
 Research and Scientific Method
Scientific method, as practiced in business
research, guides our approach to problem solving.
The essential tenets of scientific method are:
 Direct observation of phenomena
 Clearly defined variables, method, and procedures
 Empirically testable Hypothesis
 The ability to rule out rival hypothesis
 Statistical rather than linguistic justification of
conclusions
 The self correcting process
 Research and Scientific Method
Empirical testing means “to denote observations
and prepositions based on sensory experience
and/or derived from such experience by methods of
inductive logic, including mathematics and statistics”.
Researchers using this approach attempt to
describe, explain, and make predictions by relying on
information gained through observation.
Argument allows us to explain, interpret, defend,
challenge, and explore meaning.
Two types of argument of great importance to
research are deduction and induction
 Deduction
Deduction is a form of argument that purports to
be conclusive - the conclusion must necessarily
follow from reasons given. The reasons are said
to imply the conclusion and represent a proof.
For a deduction to be correct, it must be both true
and valid.
 Premise (reasons) given for the conclusion must
agree with the real world (true).
 The conclusion must necessarily follow from the
premises.
 Deduction
 A Deduction is valid if it is impossible
for the conclusion to be false if the
premise are true.
 Conclusion is not logically justified if
one or more premises are untrue or
the argument form is invalid.
 Induction
In Induction, conclusions is drawn
from one or more particular facts. The
conclusion explains the facts and the
facts support the conclusion.
The inductive conclusion is an inferential jump
beyond the evidence presented.
 Induction
Example:
A firm spends $1 million on a regional
promotional campaign and sales do not
increase. The conclusion may be that the
promotional campaign was poorly executed.
But other reasons also may fit the fact.
 It can be lack of stock with retailers
 A strike by employees during that period that
prevented stock reaching the retailers during
the promotional activities, etc.
 Scientific Investigation
 1 Observation
 2 Identification of problem area
 3 Theoretical framework
 4 Hypotheses
 5 Research design
 6 Data collection
 7 Data analysis
 8 Data interpretation
 9 Implementation
The seven-step process in the
Hypothetico-Deductive method
 1 Observation
 2 Problem identification
 preliminary information gathering
 3 Theoretical framework
 theory formulation
 4 Hypothesizing
 5 Research design
 further scientific data collection
 6 logical analysis
 7 Deduction
The seven-step process
 problem statement is a clear, precise, and succinct
statement of the question or issue that is to be
investigated with the goal of finding an answer or
solution.
 Theoretical framework is the foundation on which
the entire research project is based.It is logically
developed,described,and elaborated network of
associations among the variables relevant to the
problem situation.
 A hypothesis is a tentative statement that proposes a
possible explanation to some phenomenon or event.
A useful hypothesis is a testable statement which
may include a prediction. A hypotheses should not be
confused with a theory.
The seven-step process
 Data analysis: the data gathered are statistically
analyzed to see if the hypotheses that were
generated have been supported.
 Measurement is the process observing and
recording the observations that are collected
as part of a research effort.
 Deduction is the process of arriving at
conclusions by interpreting the meaning of the data
analysis results.
Problem Formulation

 "Well begun is half done" --Aristotle, quoti

ng an old proverb

 Where do research topics come from?

 The idea for a research project?
 one of the most common sources of research
ideas is the experience of practical
problems in the field?
 The Literature Review
Levels of Measurement
 The Research Cycle

 The Research Cycle

 QUESTIONING
 PLANNING
 GATHERING
 SORTING & SIFTING
 SYNTHESIZING
 EVALUATING
 REPORTING*
 Information needs in business
 Almost every organization has to engage in
research at some level to stay competitive.
 Companies gather data both from within and
outside the organization.
 The methods used to gather,analyze,and
synthesize information from the external and
internal environments are becoming increasingly
sophisticated to the immense scope of computer
technology.
The research process
 1 Observation
 2 Data gathering
 3 Problem definition
 4 Theoretical framework (variables identified)
 5 Hypotheses
 6 Research design
 7 Data collection,analysis,interpretation
 8 Deduction
 9 Report writing
 10 Report presentation
 11 Managerial decision making
Research design
 Purpose of the study:
 Exploratory study
 Is undertaken when no information is available on how similar
problems or research issues have been solved in the past
 Descriptive study
 Is to able to describe the characteristics of the variables of
interest in a situation.
 Hypotheses testing
 Is undertaken to explain the variance in the dependent variable
or to predict organizational outcomes.
 Case studies

 Research design can be thought of as the structure of

research -- it is the "glue" that holds all of the elements in a
research project together
Measurement
 The rating scale
 Have several response catagories
 Likert scale is designed o exermine how
strongly subject agree or disagree with
statements on a 5-point scale
 Ranking scale
 Are used to tap preferences between two or
more objects or items
 Goodness of measure : reliability,validity
Data collection methods
 Data can be collected in a variety ways ,data
sources can be primary or secondary.
 Data collection methods such as:
 interview(face-to-face,telephone,computer-
assisted interviews),
 Questionaires
 Observation
 Motivational techniques
Sampling
 A sample is a subset of the population.
 Sample is the process of selecting a sufficient
number of elements from the population.
 Studying a sample rather the entire population is
sometimes to lead to more reliable results, mostly
because fatigue is reduced,resulting in fewer errors
on collection data. (time, cost,human resources)
 Surveys are useful and powerful in finding answers to
research question but if data are not collected from
the people or objects that can provide the correct
answers to solve the problem, the survey will be in
vain.
Data Analysis and Interpretation
 The data analysis involves three major steps, done in
roughly this order:

 Cleaning and organizing the data for analysis (

Data Preparation)
 Describing the data (Descriptive Statistics)

 Testing Hypotheses and Models (Inferential Statistics

)
 Descriptive Statistics
 Descriptive statistics
 provide simple summaries about the sample and the measures.
 Central Tendency. The central tendency of a distribution is an estimate of
the "center" of a distribution of values. There are three major types of
estimates of central tendency:
 Mean is the most common-used measure of data tendency.=average.
 Median is the middle value , when the data is arranged in numerical order. 
 Mode is the value ( number) that appears the most.
 Dispersion (Range, Standard Diviation)refers to the spread of the values ar
ound the central tendency
 Inferential statistics
 t-test, Analysis of Variance (ANOVA), Analysis of Covariance (ANCOVA),
regression analysis, Correlation is a measure of the relation between two or
more variables.

 we use inferential statistics to make judgments of the probability that an

observed difference between groups. Thus, we use inferential statistics to
make inferences from our data to more general conditions;
 we use descriptive statistics simply to describe what's going on in our data.
Statistics methods
 Central tendency
The Research Report
 Researh proposal

 Research report

 Research presentation
Research report articles vary in how they are
organized, :

 Abstract - Brief summary of the contents of the article

 Introduction - A explanation of the purpose of the study, a statement of the r
esearch question(s) the study intends to address
 Literature review - A critical assessment of the work done so far on this
topic, to show how the current study relates to what has already been done
 Methods - How the study was carried out (e.g. instruments or equipment, pr
ocedures, methods to gather and analyze data)
 Results - What was found in the course of the study
 Discussion - What do the results mean
 Conclusion - State the conclusions and implications of the results, and
discuss how it relates to the work reviewed in the literature review; also,
point to directions for further work in the area
 Research Proposal
 Title Page
 Abstract (on a separate single page)
 The Body (no page breaks between sections in the body)
 Introduction (2-3 pages)
 Methods (7-10 pages)
 Sample (1 page)

 Measures (2-3 pages)

 Design (2-3 pages)

 Procedures (2-3 pages)

 Results (2-3 pages)

 Conclusions (1-2 pages)
 References
 Tables (one to a page)
 Figures (one to a page)
 Appendices

 Sample Paper http://www.socialresearchmethods.net/kb/sampaper.php

 http://www.socialresearchmethods.net/kb/guideelements.php
 Formatting http://www.socialresearchmethods.net/kb/formatting.php
Question?
 How can you solve business problem?
 Why do you need to know how to write the research
proposal?
 Do you understand the research process?
 Do you know why do you have to identify problem
statement clearly before doing research?
 Do you know why sampling and statistics are
important to the research result?
 Why do you have to identify the limitation of your
study?
 Why the research report and presentation are
important?
 Do you know how to apply the steps of the research
process ?
Questions
 1.If you want to set up a coffee shop near
the university and school, what is your
research topic?
 2.Identify the problem statement.
 3.Identify the objectives
 4.The hypotheses
 5. The research methodology.
 6. The examples of the questionaireใ