Block 1
Block 1
Research Methodology
Indira Gandhi
for Management
National Open University Decisions
School of Management Studies
BLOCK 1
INTRODUCTION TO RESEARCH METHODOLOGY 5
Unit 1 Research Methodology: An Overview 9
Unit 2 Steps for Research Process 19
Unit 3 Research Designs 39
BLOCK 2
DATA COLLECTION AND MEASUREMENT 51
Unit 4 Methods and Techniques of Data Collection 55
Unit 5 Attitude Measurement and Scales 74
Unit 6 Questionnaire Designing 88
Unit 7 Sampling and Sampling Designs 103
BLOCK 3
DATA PRESENTATION AND ANALYSIS 129
Unit 8 Data Processing 133
Unit 9 Statistical Analysis and Interpretation of Data: Nonparametric 143
Unit 10 Multivariate Analysis of Data 172
BLOCK 4
REPORT WRITING AND PRESENTATION 193
Unit 11 Ethics in Research 197
Unit 12 Substance of Reports 202
Unit 13 Formats of Reports 219
Unit 14 Presentation of a Report 249
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MMPC 015 : RESEARCH METHODOLOGY
FOR MANAGEMENT DECISIONS
BLOCK 1
INTRODUCTION TO
RESEARCH METHODOLGOY
BLOCK 1 INTRODUCTION TO RESEARCH
METHODOLOGY
Block 1 on Introduction to research Methodology consists of three units.
Unit 1 discusses the meaning of research and the importance of research in
decision-making. It also discusses the broader aspects of research methodology,
types of research and the role of research in managementdecision-making.
Unit 2discusses the steps involved in the business research process and defines
the research problems. It also explains hypothesis testing, preparing the research
design, collecting the data, analysis of data and preparation of the report or the
thesis.
Unit 3 on Research Designs covered different types of research designs, with
reference to exploratory, descriptive, and experimental research designs. The
key considerations for adopting a specific research design are discussed. The
lab and field experiments were discussed in detecting the cause-and-effect
relationships. Further, Issues of internal and external validity were discussed.
Also, decisions on choosing lab experiments or field experiments were examined.
Introduction to Research
Methodology
8
Research Methodology:
UNIT 1 RESEARCH METHODOLOGY: AN An Overview
OVERVIEW
Objectives
After going through this unit, you should be able to:
Understand the meaning and importance of research
Identify the need for research in decision making.
Understand the role and purpose of research in important areas in
business.
Structure
1.1 Introduction
1.2 Meaning of Research
1.3 Research Methodology
1.4 Research Method
1.5 Business Research Method
1.6 Types of Research
1.7 Importance of business research
1.8 Role of research in important areas
1.9 Summary
1.10 Self-assessment Exercises
1.11 Further Readings
1.1 INTRODUCTION
When managers use research, they are applying the methods of science to the art
of management. All business undertakings operate in the world of uncertainty.
There is no unique method which can entirely eliminate uncertainty. But research
methodology, more than any other procedure, can minimise the degree of
uncertainty. Thus, it reduces the probability of making a wrong choice amongst
alternative courses of action. This is particularly significant in the light of
increasing competition and growing size which make the task of choosing the
best course of action difficult for any business enterprise.
It is imperative that any type of organisation in the present environment needs
systematic supply of information coupled with tools of analysis for making sound
decisions which involve minimum risk. It is in this context that the research
methodology plays a very important role. In this unit, we will discuss at length the
importance of research in decision making by delineating all its relevant elements.
Look at a scene in the morning and then in the evening. Use the naked eye and
then the tinted glasses. It is the same with research. A high proportion of shoppers
in store A have a positive opinion of store A. Shoppers in store B may have a
totally different opinion of store A. Purchase behaviour varies with price specials.
It is always possible to prove a point if one desires, by carefully selecting the
respondents, time, and place. True research attempts to find out an unbiased
answer to the decision-making problem.
The interviewer should avoid the temptation of rephrasing the question for the
respondent in order to preserve reproducibility aspect. Poor and vague sampling
procedure can also lead to non-reproducibility. If procedures are vague and not
stated clearly, you cannot expect consistency even from the same interviewers.
Control must consider two aspects. (1) Those variables that are truly with in
your control must be varied according to the nature of your investigation. (2)
Those variables beyond your control should be recorded. 11
Introduction to Research Activity 1
Methodology
The three parts concerning any research investigation are:
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
Activity 2
The five distinguishing features of any good research are:
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
Activity 3
Mention a few research studies where it is impossible to have control on all
other factors:
...............................................................................................................................
...............................................................................................................................
...............................................................................................................................
b) Railways
.................................................................................................................
.................................................................................................................
c) Temple Management
.................................................................................................................
.................................................................................................................
1.9 SUMMARY
We have started the discussed by emphasizing that research is the application of
science to the art of management. Research lays the structure for decision making.
Research is not synonymous with common sense. Research is characterised by -
systematic, objective, reproducible, relevance, and control. Research methodology
refers to conducting research in a systematic manner using different research
methods and explain the rationality behind using certain methods. Research
17
Introduction to Research methodology minimises the degree of uncertainty involved in management
Methodology
decisions.
Business research methods refers to a set of research procedures, tactics or
techniques used by organization. Research plays a crucial role in businesses to
solve simple to complex problems. The importance and role of research in the
areas of management has been briefly covered. The areas include marketing,
production, banking, materials, human resource development, and government.
18
Research Methodology:
UNIT 2 STEPS FOR RESEARCH PROCESS An Overview
Objectives
After going through this unit, you should be able to:
Identify the steps in the research process.
State research problems clearly and precisely.
Formulate the research problem in terms of a hypothesis to be tested.
Understand the role and importance of literature review in research
Perform literature review to solve business problems in the organization.
Structure
2.1 Introduction
2.2 Research process
2.3 Define research problems
2.3.1 Research Problem
2.3.2 Importance of research problem
2.3.3 Points to Ponder on Research Problem
2.3.4 Units of Analysis
2.3.5 Sources of research topic
2.3.6 Consideration in selecting a research problem
2.3.7 Steps in formulating a research problem
2.3.8 Criteria of Selection
2.3.9 Characteristics of Good Research Questions:
2.4 Research Problem as Hypothesis Testing
2.5 Extensive literature review in research
2.6 Development of working hypothesis
2.7 Preparing the research design
2.8 Collecting the data
2.9 Analysis of data
2.10 Preparation of the report or the thesis
2.11 Summary
2.12 Self-Assessment exercises
2.13 Further Readings
2.1 INTRODUCTION
In today’s complicated globe, every culture is confronted with major social,
political, and economic issues. These issues need to be addressed systematically,
practically, and rationally, andissues to be solvedlogically and scientifically.
However, a sequential follow process necessitates the acquisition of new
information. Research allows for the accumulation of knowledge and wisdom. 19
Introduction to Research In other words, a research methodology is a systematic act of obtaining facts,
Methodology
examining, and interpreting facts to solve issues that society faces.
It has established the minimum purchasing power required for the medium and
large stores as Rs.100 million and Rs.250 million, respectively. A possible
structuring of the three hypothesis is
H0: Total purchasing power is less than Rs. 100 million,
H1: Total purchasing power is between Rs. 100 million and Rs. 250 million.
H2: Total purchasing power is greater than Rs. 250 million.
The acceptance of one of these hypotheses leads directly to one of the three
actions contemplated: It is not necessary to determine purchasing power precisely
than that indicated in the three hypotheses. A two-stage research project might
be indicated. Stage one would establish whether purchasing power were clearly
within the values specified by the hypotheses. Only if stage one revealed a figure
close to Rs. 100 million or Rs. 250 million would stage two be undertaken. There
is no reason to incur the cost of determining purchasing power with precision
unless that precision is required in decision making.
Decision making as hypotheses testing is a two-step process with error possibilities
at each step. At step one there is the relationship between the states. of nature
and the action recommended. The percentage of adults in the audience may not
be a proper guide to action. The number of adults may be better guide. Rupee
value expenditure in the product category may be still better. At step two there is
the possibility that the research result may be erroneous with respect to the state
of nature. The sample may indicate that the percentage of adults in the audience
is less than 10 %. Or the opposite error may occur. Research procedures do not
yield certainty with respect to the true state of nature. No matter how careful we
are, we may conclude that HO is true when H1 is true or vice versa. This fact
means the decision maker and the researcher must evaluate the seriousness of
different kinds of errors. The seriousness of the errors can be appraised only in
terms of the actions that will be recommended. No harm occurs until the
conclusions have an impact on what the firm does.
Table 2 presents the general situation with two possible states of nature and two
alternative actions. Assuming the relationship between the two states of nature
and the two action is valid, no error occurs if we conclude that HO is true and it
is true; similarly, no errors occur if we conclude that Hl is true, and it is true.
Errors occur in each of the other cells.
29
Introduction to Research Table 2: True States of Nature versus Conclusions. Possible
Methodology
Types of Errors
State of nature Recommended Decision
H0 True H1 True
H0 True No Error Type 1 Error
H1 True Type 2 Error No Error
Consider the format of Table.3 in terms of the problem dealing with advertising
on children’s TV shows. HO (at least 10 % of the audience is composed of adults)
leads to a recommendation to advertise. H1 (less than 10% of the audience is
composed of adults) leads to a recommendation not to advertise. Under the Type
11 error we think HO is true and recommend in favour of advertising, but less
than 10% of the audience is composed of adults. The opposite situation exists
with the Type 1 error. We recommend against advertising (thinking H1 is true),
but at least 10% of the audience is composed of adults. Which error is more
serious-failing to take advantage of an existing opportunity or incurring
expenditures? Placed in those terms, it should be obvious that no general answer
can be given to the general question of which error is more serious. The decision
maker must carefully evaluate each specific situation with its unique set of
potential risks and benefits. The identification of which error is more serious is
not a meaningless intellectual exercise! The analysis can be planned in such a
way so as to minimise those errors that are viewed as more serious.
Activity 6
A hypothesis is ...................................................................................... universe
State of nature refers to ......................................................................... universe
Activity 7
Consider any research problem of interest to you.. Structure it in terms of an
appropriate hypothesis to be tested. Also mention the possible errors and
recommendations associated with your hypothesis. Illustrate your answer with
the help of a suitable example.
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
To adequately search for literature on your subject of interest, you must first
understand the subject area and the problem you desire to examine to set search
parameters. After that, build a bibliography for this vast topic. Researchers mainly
refer journals, conference proceedings, Govt. reports, books etc.
raw data and information. Informationrefers to a body of facts that are in a format
suitable for decision making, whereas data are simply recorded measures of certain
phenomena. The raw data collected in the field must be transformed into
information that will answer the manager’s questions.
The conversion of raw data into information requires that the data be edited and
coded so that the data may be transferred to a computer or other data storage
medium.If a database is large, there are many advantages to utilizing a computer.
Assuming a large database, entering the data into the computer follows the coding
procedure.
The analysis of data requires a number of closely related operations such as
establishment of categories, the application of these categories to raw data through
coding, editing, and tabulation, analysing and drawing interferences.
Coding operation is usually done at this stage through which the categories of
data are transformed into symbols that may be tabulated and counted.Editing is
the procedure that improves the quality of the data for coding. With coding the
stage is ready for tabulation. Tabulation is a part of the technical procedure where
in the classified data are put in the form of tables.Analysing work after tabulation
is generally based on the computation of various percentages, co-efficient, etc…,
by applying various well defined statistical formulas.
After analysing the data as stated above, the researcher is in a position to test the
hypothesis, if any, he had formulated earlier.”Do the facts support the hypothesis
or they happen to be contrary? This is the usual question which should be
answered while testing hypothesis.
Various tests, such as chi square test, t-test, f-test, have been developed by
statisticians for the purpose.The hypothesis may be tested through the use of one
or more of such tests, depending upon the nature and object of research inquiry.If
the researcher had no hypothesis to start with, generalizations established on the
basis of data may be stated as hypothesis to be tested by subsequent researchers
in time to come.
2.11 SUMMARY
The unit discusses the steps involved in the business research process. The
research process involves the seven important steps - problem definition, review
of literature, formulating objectives & hypotheses, researchdesign, data collection,
data analysis, and interpretation of results. All these stepshave been explained in
detail with their key elements. However, the unit explains the first two steps,
namely formulating the research problem and literature review, more in detail.
The following units discuss the remaining steps in detail.
The research problem identification is the first and most important step of the
research process. The researcher must understand the sources and process of
formulating the research problem. Both reviews of literature and research problem
steps are complementary, as researcher need to perform review of literature to
formulate the research problem and without knowledge gained through review
of literature cannot solve the research problem.
36
Steps for Research Process
2.12 SELF-ASSESSMENT EXERCISES
a. How do you describe the research process?
b. You are interested in doing some research on the interface between business
organisations and schools. Write three research questions that may be
appropriate.
c. Give an original example of a problem in which the unit of analysis is a
DMU (Decision-making-unit). Make sure to include a discussion of how to
measure the principal characteristic of interest for DMU’s which involve
more than a single individual.
d. “The problem definition stage is perhaps more critical in the research process
than the problem solution stage.” Discuss the statement.
e. Below is the gist of an article from Business Week. After reading it,
i. Identify the broad problem area
ii. Define the problem
“While Chrysler’s minivans, pickups, and sport utility vehicles take a big
share of the truck market, its cars trail behind those of GM, Ford, Honda,
and Toyota. Quality problems include, among other things, water leaks and
defective parts.”
f. What is the problem statement in the following situation?
“Companies benefit through employee loyalty. Crude downsizing in
organizations
during the recession crushed the loyalty of millions. The economic benefits
of loyalty embrace lower recruitment and training costs, higher productivity
of workers,
customer satisfaction, and the boost to morale of fresh recruits. In order that
these
benefits are not lost, some companies while downsizing try various gimmicks.
Flex
leave, for instance, is one. This helps employees receive 20% of their salary,
plus
employer provided benefits, while they take a 6 to 12 month sabbatical, with
a call
option on their services. Others try alternatives like more communication,
hand
holding, and the like.”
g. A sports goods company wishes to test two types of tennis rackets in order to
determine which one is “best”.
i. Propose and defend a precise definition of “best”.
37
Introduction to Research ii. What is the set of hypotheses that should be tested?
Methodology
iii. What action would be associated with each hypothesis?
Why are critical reviews of relevant literature important in research studies?
h. Describe the purpose of a literature survey.
38
Steps for Research Process
UNIT 3 RESEARCH DESIGNS
Objectives
After going through this unit, you should be able to:
Discuss the various research designs as powerful tools to study the cause
and effect relationships amongst variables in research.
Explain the assumptions embodied in the design models.
Choose the appropriate design model for a specific research problem.
Structure
3.1 Introduction
3.2 Functions and Goals of Research Design
3.3 Characteristics of a Good Design
3.4 Different Types of Research Designs
3.5 Exploratory Research Design
3.5.1 Techniques used for exploration
3.5.2 Characteristic of Exploratory research
3.6 Descriptive Research Design
3.7 Experimental Research Design
3.7.1 Lab-Experiment
3.7.2 The Field Experiment
3.8 Types of Experimental Designs
3.8.1 Quasi and True Experimental Designs
3.8.2 Simulation
3.8.3 Decision on Experimental designs
3.9 Summary
3.10 Self-Assessment exercises
3.11 Further Readings
3.1 INTRODUCTION
The research design refers to a researcher’s roadmap, which they decide to follow
during their research journey to find their research question’s answer and validate
accurately, economically, and objectively as possible. The research design process
allows the researcher and writers to follow the instruction of their research work.
It tells the researcher what and how a distinctive method could be applied in
different phases of the research. By making a research design plan, researchers
are ready to decide and even ready to communicate with others or themselves
about their decisions regarding the proposed study design. How they will collect
information and select respondents, analyse the information, and communicate
to other their findings.
39
Introduction to Research Research design means an overall framework or plan for the activities to be
Methodology
undertaken during the course of a research study. When particular research area
has been defined, research problem is defined, and the related literature in the
area has been reviewed, the next step is to construct the research design. It is
fundamental to the success of any scientific research. It involves decisions
regarding what, where, when, how much and by what means concerning a research
study. It constitutes a blue print for the collection, measurement and analysis of
data. It serves as a framework for the study, guiding the collection and analysis
of data, research instrument to be utilized and the sampling plan to be followed.
According to Kerlinger: “Research design is the plan, structure and strategy
of investigation conceived so as to obtain answers to research questions and to
control variance.”
According to Kinner and Taylor: “A research design is the basic plan which
guides the data collection and analysis phase of the research project. It is the
framework which specifies the type of information to be collected, the source of
data and the data collection procedure.”
The formidable problem that follows the task of defining the research problem is
the preparation of the design of the research project, popularly known as the
“research design”. “A research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure”. In fact, the research design is the
conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data. As such the design
includes an outline of what the researcher will do from writing the hypothesis
and its operational implications to the final analysis of data.More explicitly, the
design decisions happen to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can the required data are found?
vi) What periods of time will the study include?
vii) What will be the sample design?
viii) What techniques of data collection will be used?
ix) How will the data be analysed?
x) In what style will the report be prepared?
Activity 3
Distinguish between exploratory and descriptive research designs
................................................................................................................................
................................................................................................................................
................................................................................................................................
................................................................................................................................
In the form of research the marketer tries to determine if the manipulation of the
variable, called the independent variable, affects another variable, called the
dependent variable. If casual research is performed well marketers may be able
to use results for forecasting what might happen if the changes are made.
3.7.1 Lab-Experiment
When research particularly interest to observe the effects of independent on
dependent variable or clearly measure the cause-effects relation between two
variables (Independent, dependent), that time they controlled the other variables
which might be possible to contained the study relation. Apart from that, some
extent independent variables manipulation also needs in order to determine the
degree of its causal effects. Laboratory setting is the best for manipulating and
controlling specifically to test the variables causal-effects. Hence, we use ‘Control’
and ‘Manipulation’ terms.
Control
Supposed say, we postulate the two variables (X, Y) ‘causal-and-effects’ relation.
Where X and Y respectively treated as independent and dependent variables and
it is feasible that another variable, say A, will also impact the dependent variable
(Y). In that scenario, finding Y’s actual occur variation due to X is quite not
possible because we do not know the A variables actual effects on X. For example,
in web page creation context, a firm’s HR manager decide to give special training
for new haired employee. Specifically, to prove his/her VP (Vice-president) that
training programme would improve newly employee performance. However,
it’s quite possible that some of new employed performance are effective compared
to other due to previous experience. So, in order to find the truth programme
outcome, programme conductor must control the learner previous experience by
excluding those new employees who had previous experience in web page
creation.
Manipulation of the Independent Variable
In order to examine the causal effects of an independent variable on a dependent
variable, certain manipulations need to be tried. Manipulation simply means that
45
Introduction to Research we create different levels of the independent variable to assess the impact on the
Methodology
dependent variable. For example, we may want to test the theory that depth of
knowledge of various manufacturing technologies is caused by rotating the
employees on all the jobs on the production line and in the design department,
over a 4-week period. Then we can manipulate the independent variable, “rotation
of employees,” by rotating one group of production workers and exposing them
to all the systems during the 4-week period, rotating another group of workers
only partially during the 4 weeks (i.e., exposing them to only half of the
manufacturing technologies), and leaving the third group to continue to do what
they are currently doing, without any special rotation. By measuring the depth of
knowledge of these groups both before and after the manipulation (also known
as the “treatment”), it would be possible to assess the extent to which the treatment
caused the effect, after controlling the contaminating factors. If deep knowledge
is indeed caused by rotation and exposure, the results would show that the third
group had the lowest increase in depth of knowledge, the second group had
some significant increase, and the first group had the greatest gains!
3.8.2 Simulation
An alternative to lab and field experimentation currently being used in business
research is simulation. Simulation uses a model-building technique to determine
the effects of changes, and computer-based simulations are becoming popular in
business research. A simulation can be thought of as an experiment conducted in
a specially created setting that very closely represents the natural environment
in which activities are usually carried on. In that sense, the simulation lies
somewhere between a lab and a field experiment, insofar as the environment is
artificially created but not far different from “reality.” Participants are exposed
to real-world experiences over a period of time, lasting anywhere from several
hours to several weeks, and they can be randomly assigned to different treatment 47
Introduction to Research groups. If managerial behaviour as a function of a specific treatment is to be
Methodology
studied, subjects will be asked to operate in an environment very much like an
office, with desks, chairs, cabinets, telephones, and the like. Members will be
randomly assigned the roles of directors, managers, clerks, and so on, and specific
stimuli will be presented to them. Thus, while the researcher would retain control
over the assignment and manipulation, the subjects would be left free to operate
as in a real office. In essence, some factors will be built into or incorporated in
the simulated system and others left free to vary (participants’ behaviour, within
the rules of the game). Data on the dependent variable can be obtained through
observation, videotaping, audio recording, interviews, or questionnaires.
3.9 SUMMARY
This unit covered different types of research designs, with particular reference
to exploratory, descriptive and experimental research designs. The key
considerations for adopting a specific research design is discussed. The lab
and field experiments were discussed in detecting the cause-and-effect
48 relationships. Further, Issues of internal and external validity were discussed.
Also, decision on choosing the lab experiments or field experiments were Research Designs
examined.
49
Introduction to Research
Methodology
50