Research Methods for

Business
A Skill Building Approach

Uma Sekaran and Roger Bougie

.John ley & Sons Ltd 2009 ©

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 CHAPTER 1
INTRODUCTION TO RESEARCH
?What is Research

 Research is the process of finding solutions to a

problem after a thorough study and analysis of the
situational factors.

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?What is Research

 Managers in organizations constantly engage

themselves in studying and analyzing issues and
hence are involved in some form of research
activity as they make decisions at the workplace.

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 ?What is Research

 Sometimes managers make good decisions and

the problem gets solved.
 Sometimes managers make poor decisions and
the problem persists.
 The difference between making good decisions
and poor decisions, lies in how managers go
about the decision-making process.
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 ?What is Research
 Good decision making fetches a “yes”
answer to the following questions:

1. Do managers identify where exactly the problem lies?

2. Do they correctly recognize the relevant factors in the situation
needing investigation?
3. Do they know what types of information are to be gathered and how?
4. Do they know how to make use of the information so collected and
draw appropriate conclusions to make the right decisions.
5. Do they know how to implement the results of this process to solve
the problem?

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 Business Research
 Business research can be described as a systematic
and organized effort to investigate a specific problem
encountered in the work setting, that needs a
solution.
 Business research comprises a series of steps:
 Identifying critical issues
 Gathering relevant information
 Analyzing the data
 Selecting course of action

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 Business Research
 Steps of business research:

 To know where the problem areas exist in the organization.

 To identify as clearly and specifically as possible the problems that
need to be studied and resolved.
 Gather information, analyze the data, and determine the factors that are
associated with the problem and solve it by taking the necessary
corrective measures.

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 Business Research
 Definition:
 An organized, systematic, data-based, critical, objective,
investigation into a specific problem, undertaken with the
purpose of finding answers.

 Research helps to make informed decisions to be

successful.

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 Types of Business Research
 Research can be undertaken for two different
purposes:
1. To solve a current problem faced by the manager
in the work setting. Such research is called applied
research.
2. To generate a body of knowledge about how to
solve problems that could be occurred in
organizations. This is called basic research or
fundamental research. It is also known as pure
research.
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Examples of Applied
Research

 Apple’s iPod sales increased by 200% from 2001

to 2008. but the sales decreased by 6% in 2009.
What is the reason for this decrease?
 The question is: what will apple do about this
problem?

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 Examples of Applied Research
 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, its sales rose just 4%.

 In this situation, it needs to look into the efficacy of the

analog technology used in copiers and examine what should
be done to increase efficiency and promote its sales.

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 Examples of Basic Research
 University professors engage in basic research in an effort to
understand and generate more knowledge about various
aspects of businesses, such as:
 How to improve the effectiveness of information systems?
 How to integrate technology into the overall strategic objectives of an
organization?
 How to increase the productivity of the employees?
 How to increase the effectiveness of small businesses?

 These findings later become useful for application in

business situations.

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 Distinction Between Applied and
Basic Research
 The main distinction between applied and basic
business research is:
- Applied research is specifically aimed at solving a
currently experienced problem.
- Basic research has a broader objective of generating
knowledge and understanding of phenomena and
problems that occur in various organizational
settings.
- Both types of research follow the same steps of
systematic inquiry to arrive at solutions to
problems.
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 Managers and Research
 Identify and effectively solve minor problems in the work settings.

 Know how to discriminate good from bad research.

 Appreciate and be constantly aware of the multiple influences and multiple effects of
factors impinging on a situation.

 Take calculated risks in decision making.

 Evaluating the Course of Action

 Evaluation research is the formal, objective measurement and appraisal of the extent a given
activity, project, or program has achieved its objectives.
 Performance-monitoring research is a specific type of evaluation research that regularly,
perhaps routinely, provides feedback for the evaluation and control of recurring business
activity.

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 Research Helps in Decision making

From: Business Research Methods by Zikmund (Ch. 01)

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 ?When Is business research needed

 Time constraints,
 The availability of data,
 The nature of the decision to be made, and
 The value of the research information in relation to costs.

From: Business Research Methods by Zikmund (Ch. 01) 18

 Internal Versus External
Consultants/Researchers

 Internal Consultants or Researchers:

Some organizations have their own research
department, which might be called:
- The management services department
- The organization and methods department
- R & D (research and development department)

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 Internal Versus External
Consultants/Researchers
 Such a department within the organization serves
as the internal consultant if it face certain
problems and seek help.
 This unit would be useful in several ways

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 Advantages of Internal
Researchers

 Readily accepted by the employees.

 Less time to understand the structure, philosophy,
climate and work system of the organization.
 Availability after the research.
 Less Cost

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 Disadvantages of Internal
Researchers
 Less fresh ideas and perspectives

 There is scope for certain powerful groups in the

organization to influence or misrepresent certain facts.

 Not perceived as “experts” by the management,

 Certain organizational biases of the internal research team

might make the findings less objective and less scientific

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Advantages of External
Consultants

 A wealth of experience

 They might have more knowledge of current

sophisticated problem-solving models

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 Disadvantages of External
Consultants
 High Cost
 Need a considerable time to understand the
organization to be researched.
 Seldom get a warm welcome, nor are accepted by
employees.
 Charges additional fees for their assistance in the
implementation and evaluation phases.

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