RESEARCH METHODS
RESEARCH METHODS
FOR BUSINESS
FOR BUSINESS
A Skill-Building Approach
A Skill-Building Approach
Fifth Edition
Fifth Edition
Uma Sekaran and Roger
Uma Sekaran and Roger
Bougie
Chapter one
Chapter one
Introduction To Research
Introduction To Research
Topics discussed
What is research?
Business research
Types of business research: applied and
basic
Managers and research
The manager and the consultant-researcher
Internal versus external
consultants/researchers
Knowledge about research and managerial
effectiveness
•
What is an Organization?
•
Organization is an entity where two or
more persons work together to achieve
a goal or a common purpose.
•
A manager is someone who works with
and through other people by
coordinating their work activities in
order to accomplish organizational
goals.
What is research?
• Research is the process of finding solutions to a
problem after a thorough study and analysis of the situational factors.
• Research is daily and continuous task of
organization activities.
• Research methods are used in the different areas of
business-human resources management,
production, operations management, business policy and strategy, organizational behavior, marketing, information systems, accounting,
finance as part of the social science have the same procedures.
• Research is related to all types of problem. A problem
is a discrepancy between an existing and a desired state of affairs.
• Research assists managers to make decisions that
differed according to the types of problems that must be handled:
1. Well-structured problems are straightforward, familiar, and easily defined. In handling this situation, a
manager can use a programmed decision, which is a repetitive decision that can be handled by a routine approach.
2. Poorly structured problems are new or unusual problems in which information is ambiguous or
incomplete. These problems are best handled by a
non-programmed decision that is a unique decision; it requires a custom-made solution.
Business research
• In general, business research is a systematic and
organized effort to investigate a specific problem encountered in the work setting, which needs a solution.
• Systematic refers to a series of steps that are designed
and executed to find a solution or answers to specific issue (identifying the problem, recognizing the relevant factors in the situation to be investigated, gathering
data, analyzing data and implementation).
• Specifically, Business research is an organized,
systematic, data-based (external or internal), critical, objective, scientific inquiry or investigation that used to rectify a specific problem.
Inputs (quantitative and qualitative data)
Process (inquiry, investigation, examination, and experimentation)
Outputs (facts or results that helps
a manager to deal with the problem situation).
Decision making: the process of choosing from among alternative solutions to resolve a problem.
The importance of research
• Research generates possible alternatives to solve
specific problem efficiently or/and to improve the decision-making process.
• Research decreases the uncertainty of situations
encountered the organization.
• Decrease the alternatives of situational factors that
affect the problem.
• Forecast the future of business situations resultant
to the complexity of modern organizations, and the uncertainty of the environment.
• Adapt with, but not control, the external environment
and control the internal environment.
• It is a helpful tool to discriminate between good and
bad studies published in (professional) journals and to discriminate between good and bad studies
Research and the manager
High management level
• Strategy formulation and implementation.
• Supervisory performance, managerial leadership
style, and performance appraisal systems.
• Validation of performance appraisal systems.
• Updating policies and procedures in keeping with
latest government regulations and organizational changes.
• Cultural differences and the dynamics of managing a
multinational firms.
• Participative management and performance
effectiveness.
• Differences in leadership positions, salaries, and
Human resources
• Employee behaviors such as performance, absenteeism,
and turnover.
• Employee attitudes such as job satisfaction, loyalty, and
organizational commitment.
• Employee selection, recruitment, training, and retention. • Human resource management choices and
organizational strategy.
Production
• Just-in-time systems, continuous-improvement
strategies, and production efficiencies.
• Downsizing.
Advanced manufacturing technologies and information systems.
Marketing
• Organizational outcomes such as increased sales,
market share, profits, growth, and effectiveness.
• Consumer decision making.
• Customer relationship management.
• Consumer satisfaction, complaints, customer loyalty,
and word-of-mouth communication.
• Complaint handling.
• Delivering and performing service.
• Product life cycle, and product innovation.
• Impression management, logos, and image building. • Product positioning, product modification and new
product development.
Financing
• Cost of capital, valuation of firms, dividend policies,
and investment decisions.
• Risk assessment, exchange rate fluctuations, and
foreign investment.
• Tax implications of reorganization of firms or
acquisition of companies.
• Collection of accounts receivable.
• Development of effective cost accounting procedures. • Qualified pension plans and cafeteria-type benefits for
employees.
Information system
• Installation of effective management information
systems.
• Installation, adaptation, and updating of computer
networks and software suitable for creating effective information systems for organizations.
• Installation of an effective data warehouse and data
Types of business research: applied and basic Basic research Applied research Generate a body of knowledge Routine or general scope
Comprehend how certain problems that occur in
organizations can be solved Solve a current
problem
Not demanding a timely solution Demanding a timely solution; a shorter time frame Based on a scientific manner Based on a scientific manner
Managers and Research
• According to conduct a research, managers have two
alternative:
Firstly: knowing how to conduct research
methods effectively.
• It gives the mangers the advantages of:
Understanding, predicting, and controlling events that are dysfunctional within the organization.
Helping the managers to sense, spot, and deal with problems b e f o r e they got out of hand or get out of
control.
Helping the managers to interact effectively with the problems.
Determining whether or not the recommended solutions are appropriate for implementation.
Understanding and discriminating the information disseminated in business journals.
Saving the time and cost.
Sharpening the sensitivity of managers to the myriad variables operating in a situation; managers easily foresee what information the researchers might
require.
Secondly: Hiring of outside researchers or
consultants to conduct the research.
It used to study some of the more complex,
The manager-researcher relationship
• The manager must interact effectively with the
research team and delineate the roles for the researchers and the management.
• The manager has to inform the researchers what
types of information may be provided and which of their records will n o t be made available to them.
• The manager should make sure that there is
congruence in the value systems of management and the consultants.
• Exchange of information helps to increase the
Internal versus external
consultants/researchers
Internal consultants/researchers
• Some organizations have Management Services
Department or R & D to solve certain problems. This orientation is useful in several ways.
• The internal team have a better chance to be
accepted by the employees.
• The team requires much less time to understand the
structure, the philosophy and climate, and the
functioning and work systems of the organization.
• An easily and swiftness of implementation. • Less cost than an external team cost.
• For problems of low complexity, the internal team
Disadvantages of internal consultants/researchers 1. The internal team may quite possibly fall into a
stereotyped way of looking at the organization and its problems.
2. The powerful coalitions in the organization may influence the internal team to conceal, distort, or misrepresent certain facts.
3. The recommendations may not get the
consideration and attention they deserve if the management does not perceive them as experts. 4. Certain organizational biases of the internal
research team might make the findings less objective and consequently less scientific.
External consultants/researchers
The advantages of external consultants/researchers 1. Having worked with different types of organizations
provide them with a wealth of experience in dealing with different problems.
2. The external teams might have more knowledge of
current sophisticated problem-solving models through their periodic training programs, which the teams within the organization may not have access to.
3. There is no chance to fall into a stereotyped way of looking at the organization and its problems.
4. No influence for the powerful coalitions in the
organization to conceal, distort, or misrepresent certain facts.
5. The management gives more consideration and attention to the findings of research.
6. For problems of high complexity, the external team would be ideal.
Disadvantages of external consultants/researchers 1. The cost of hiring an external research team is
usually high.
2. Departments and individuals likely to be affected by the research study may perceive the study team as a threat and resist them.
3. The external team may charge additional fees for their assistance in the implementation and
evaluation phases.
4. The speed and swiftness of implementation are not high.
In general, the managers should weigh the pros and cons of using internal and external researchers
The relationship between Knowledge about research and managerial effectiveness
• Managers are responsible for the final outcome by making
the right decisions at work. Therefore,
1. Knowledge of research heightens the sensitivity of managers to many internal and external factors of organizational environment.
• It helps to facilitate effective interactions with consultants
and comprehension of the nuances of the research process.
• Using the sophisticated technology such as simulation
and model building may increase profitable application in certain business areas.
• knowledge of research greatly enhances the
decision-making skills of the manager through focusing on problem solutions, fully understanding the recommendations made, and why and how they have been arrived at, make for good managerial decision making.
Ethics and business research
• It refers to a code of conduct or expected societal norm
of behavior while conducting research.
1. It pervades each step of the research process- data
collection, data analysis, reporting, and dissemination of information on the Internet, if such an activity is
undertaken.
2. It 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 rather than self-interests.
3. Ethical conduct should also be reflected in the
participants who provide the data, the analysts who provide the results, and the entire research team that presents the interpretation of the results and suggests alternative solutions.
• Discuss, with reasons, whether they fall
into the category of applied or basic research
• For Scenario 1, explain, with reasons,
Scenario 1
To acquire or not to acquire: that is the question.
• Companies are very interested in acquiring other
firms, even when the latter operate in totally
unrelated realms of business. For example, Coca-Cola has announced that it wants to buy China
Huiyuan 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 volatility 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 risk. Some research is needed here!
Scenario 2
Reasons for absenteeism
•
A university professor wanted to analyze in
depth the reasons for absenteeism of
employees in organizations. Fortunately, a
company within 20 miles of the campus
employed her as a consultant to study that
very issue.
Scenario 3
Effects of service recovery on customer
satisfaction
•
