business research slideCh01 introduction
- 1. Business Research Methods Chapter 1: The Role of Business Research
- 2. Business research is defined as the systematic and objective process of generating information for aid in making business decisions. Business Research Defined
- 3. Business Research Defined • Research is defined as organized, systematic, data based, critical, scientific inquiry into a specific problem that needs solution. • Research provides the information that enables managers to make decisions to rectify problems • Research Methods: Refer to the ways in which research studies are designed and procedures are established by which data are analyzed.
- 4. Business Research • Research information is neither intuitive nor haphazardly gathered. • Literally, research (re-search) -“search again” • Business research must be objective • Detached and impersonal rather than biased • It facilitates the managerial decision process for all aspects of a business.
- 5. Information Reduces Uncertainty I don’t know if we should offer on-site child care?
- 6. “It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.” Artemus Ward
- 7. Basic research Applied research Business Research Types
- 8. Basic Research • Attempts to expand the limits of knowledge. • Not directly involved in the solution to a pragmatic problem. • When research is being done chiefly to improve our understanding of certain problems that commonly occur in organizational settings and how to solve them. R & D department and university professors do this. Purpose is to improve / generate more knowledge.
- 9. Basic Research Example • Is executive success correlated with high need for achievement? • Are members of highly cohesive work groups more satisfied than members of less cohesive work groups? • Do consumers experience cognitive dissonance in low-involvement situations?
- 10. "The secret of success is to know something nobody else knows. " Aristotle
- 11. Applied Research • Conducted when a decision must be made about a specific real-life problem • To Solve currently existing problem in the work setting. Research is done with the intentions of applying the results of its findings to solve specific problem currently faced by organization. Most organizations do this research. Usually used for decision-making.
- 12. Applied Research Examples • Our employee turnover has increased significantly. We don’t know why? • Business research told us that poor working conditions are responsible, • Should we promote females to managerial positions? • Research showed women are equally competent to be managers.
- 13. MANAGERS & RESEARCH It helps manager to: • Identify and efficiently solve minor problems. • Know how to discriminate good from bad research • Be aware of multiple influences and effects in a particular solution. • Take calculated risks • Prevent possible vested interests from exercising the influence in situation • Relate to hired researchers and consultants more effectively. • Combine experience with scientific knowledge while making decisions
- 14. MANAGER RESEARCHER RELATIONSHIP • Manager should make sure while hiring researchers or consultants that :- • Roles and expectations of both parties are clear • Org. Values, philosophy and constraints are stated. • Good relations are buildup among researchers, management and employees.
- 15. HOW TO LOCATE AND SELECT A RESEARCHER – Many research firms are available who provide their services. – Business Colleges – Internet – Yellow Pages – Magazines – Business segments of news papers
- 16. Internal / External Researchers • Internal Researchers: Some large organizations (like Lever Brothers, ICI & P &G) have set up their own Research and development departments, where their own researchers work. They conduct applied and pure research in their organization. Medium sized organizations might not have big R & D departments.
- 17. Internal / External Researchers Advantages • Easy acceptability by the employees while conducting a research. • Less time is required to understand the culture an structure. • Availability to check the implemented recommendations • Cost-effective Disadvantages • They might be stereotyped having no fresh ideas. • Vested interests can contaminate the results • They are not perceived as experts by their own people
- 18. Internal / External Researchers • External Researchers: well established research firms are available now a days to conduct research. These firms have experiences and qualified specialist researchers to conduct research. Companies go for outside researchers if either they don’t have their own research department or they think outside researcher will better address the problem. • Advantages • They have plenty of experience of working with different type of organizations. • They are well conversant with sophisticated research tools and knowledge. • Their research will be unbiased • Disadvantages • Take more time • Not aware of company norms and culture • Costly • Face difficulty in acceptance from employees
- 19. SCIENTIFIC RESEARCH • Scientific research is focused on goal solving and pursues a step-by-step logical, organized and rigorous method to identify problems, gather data, analyze them, and draw valid results. Scientific thinking is not based on experience emotions and intuition only. • Scientific Research applies on both applied and basic research.
- 20. Determining When to Conduct Business Research • Time constraints • Availability of data • Nature of the decision • Benefits versus costs
- 21. Is sufficient time available before a managerial decision must be made? Is the infor- mation already on hand inadequate for making the decision? Is the decision of considerable strategic or tactical importance? Does the value of the research information exceed the cost of conducting research? Conducting Business Research Do Not Conduct Business Research Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs Yes YesYesYes No No No No Determining When to Conduct Business Research
- 22. Value versus Costs • Potential Value of a Business Research Effort Should Exceed Its Estimated Costs
- 23. Value •Decreased uncertainty •Increased likelihood of a correct decision •Improved business performance and resulting higher profits Costs •Research expenditures •Delay of business decision and possible disclosure of information to rivals •Possible erroneous research results Value Should Exceed Estimated Costs