BUSINESS

RESEARCH

METHODOLOGY
 OUR JOB
Our major objectives are….

 To understand the importance of research in

business.
 To understand the various terminologies related
to research.
 To understand the process of business
research.
 To conduct research in area of your interest .
 An Example…..

You want to know your Employees’ opinion

about having a health center in your organization.
Think of the steps that you would take to get the
answer .
 The Steps…..

The things that would have struck your mind

are….
 You will be ( Who )
 Asking your employees ( Whom )
 Their opinion ( What )
 Through interview OR questionnaire ( How )
 While they are in the office ( Where )
 During lunch time ( When )
 To find out if they need a health centre ( Why )
AND ONLY THEN WILL YOU TAKE

YOUR DECISION ABOUT THE

HEALTH CENTER.

This is RESEARCH .
 Functions of Research

• Validation of Knowledge
• Correction of Knowledge
• Generation of Knowledge
• Diagnosis of the situation
• Prediction of events
• Evaluation of process /product /
project
 RESEARCH AREAS…..

 Employee attitude
 Leadership styles
 Performance appraisals
 Product innovations
 Consumer complaints
 Image building
 Investment decisions
 Dividend policies
Continued…

 Alternate work patterns

 Outsourcing
 Management info systems
 Brand building & positioning
 Retirement policies
 Diversification
 Check your Progress

You have been sent to another country

to study the feasibility of opening a
branch office of your organization.

Identify the research areas.

 BUSINESS RESEARCH

RESEARCH
AREAS

HUMAN INFORMATION
MARKETING FINANCE
RESOURCE TECHNOLOGY
 Managerial Value of
Business Research

 Identifying problems or opportunities

 Diagnosing & assessing problems or
opportunities
 Selecting & implementing a course of
action
 Evaluating a course of action
 BUSINESS ENVIRONMENT

Every Business works in a variety of ENVIRONMENTS.

 Economic ( Macro & Micro )

 Social ( Human beings…Attitudes , Perceptions )

 Cultural ( Socio-cultural changes , Value crisis )

 Political ( National & International)

 Knowledge ( Science ,Technology & Skills )

 Legal ( National & International )

• There is a constant change in each of these
environments.

• The people who run the business & their employees

also undergo change continuously.

Hence there is always a generation of newer

problems, which need solutions.
 Hence there is always a

constant demand for

RESEARCH in BUSINESS .
 Types of Research
• Basic
• Applied
 Basic Research
• Basic research is also known as pure or
fundamental research.
• Objective is to extend the existing domain of
knowledge about certain subject or topic either
in physical form like sales, or in abstract form
like human behviour.
• The knowledge itself could be in the form of
trend, pattern or relationship.
• Individuals conduct basic research primarily out
of their curiousity, inquisitiveness, conviction etc.
 Basic Research - Examples
• Relationship between intelligence and creativity
• Relationship of analytical ability and verbal ability with
the scores obtained in various subjects
• Relative impact of factors like salary, work environment,
reward system affecting motivation of employees
• Relative impact of advertisements on various media
such as newspaper, magazine and television
• The Black–Scholes model (mathematical model of the
market for an equity)
• McGregor’s Theory X and Theory Y (theories of human
motivation : ‘Y’ are self motivated; ‘X’ have to be
motivated)
 Applied Research
• It is the research relating to specific
product, service or system or campaign.
• Applied research aims at solving any
problem or resolving any issue in a
scientific and systematic manner.
 Applied Research - Examples
• A branch manager may like to streamline
the functioning of its customer counters to
reduce waiting time for the customers.
• A company may like to evaluate impact of
its advertising campaign.
• It may also be used to promote a product
or class of products through favourable
results obtained through research.
 Internal Vs External Research
• Internal research is conducted by team of
experts within the organisation.
• External research is conducted for an
organisation by an outside agency like a
consultant, consultancy firm or a professional
like a Faculty in an academic institution.
• Whenever a problem needs to be solved or a
research study is considered desirable, in an
organisation, an issue arises as to whether it
should be conducted internally or through an
external agency. Both strategies have certain
advantages and disadvantages.
Advantages of Internal research
• The internal team is well versed with the
environment, systems and procedures,
culture, etc in the organization.
• It may get a quick grasp and comprehend
the various aspects of he problem / study
• The problem is solved quickly. Of course it
presumes that the requisite competent and
skilled team is available within the
organization.
 Advantages of External research
• Availability of Expertise
• Pool of Expertise
• Fresh Perspective and Individual
Thinking
• Acceptability
• Quality
Limitations of External research
• The external team may not be well versed with
the environment, systems and procedures,
culture, etc in the organization
• They may take time to grasp and comprehend
the various aspects of the problem / study
• The selection of external agency plays a crucial
role, and has to be done carefully to ensure
credibility and acceptability of their research in
the organisation
 Criteria for Selection of External
Research Agency
• Reputation
• Record of completing assignments in time
• Credibility in maintaining ethical standards.
• Flexibility in the approach based on new
developments or new thinking
• Quality of past assignments
• Experience
• Quality of Staff
• Sharing of ideology and value systems
 Let us Revise…..

• Research is an important activity in any

business.

• Its main purpose is to get solutions to

problems.

• Research is the major contributor of

knowledge.

• Managers of tomorrow will need to know

more than managers of yesterday.
 RESEARCH AS A

SCIENTIFIC PROCESS
 Scientific Research
• Scientific Research focuses on solving
problems and pursues a step by step
logical organised and rigorous method to
identify problems, to gather data, analyse
them and draw a valid conclusion.
Characteristics of Science & Research

• Purposiveness
• Rigor
• Testability
• Replicability
• Precision & Confidence
• Objectivity
• Generalizability
• Parsimony
 Steps of Science & Research

• Identification of a Problem
• Theoretical framework
• Defining Objectives
• Hypotheses
• Tool construction
• Data collection
• Data analysis
• Conclusion --- Generalization
 Research – Scientific Process
We may conclude that ---

• The characteristics of Science & Research

are same.
• The steps of a scientific process & those
of a research process are same.

Hence we call Research a Science and

Research Process as a Scientific Process.
 What is a Good Research ?
• Purpose clearly defined
• Research process detailed
• Research design thoroughly planned
• High ethical standards applied
• Limitations frankly revealed
• Adequate analysis done
• Findings presented unambiguously
• Conclusions justified
• Researcher’s experience reflected
 Sources of Knowledge

• Customs & Traditions

• Authority
• Personal Experience
• Logical Reasoning
• Scientific Inquiry
 Types of Thinking

• Inductive ----- From loose data to

universal relationships which are organized
in the form of Laws, Theories
(Derivation of theory)

Deductive ----- From Laws & Rules to

facts ( Application of rules to specific
situations)
 Components of Theory

• Concepts

• Constructs

• Theory (Knowledge Generation)

• Facts (Knowledge Generation)

 Research Process
• The research process is the methodology of conducting
a research assignment / project / study in a scientific and
systematic manner. It takes into account all the relevant
factors that are important in ensuring that the objectives
of the research study are achieved with optimum
utilisation of resources. It also ensures that the approach
is quite comprehensive with the involvement of all those
who are
• Experts in the area
• Associated with the management of the project, and
• Associated with the execution or implementation of the
project with the help of research results or findings.
 Research Process

Defining &
Specifyin Refining Hypothese Interpreti
g Area & Problem/ s Research Analy ng
Objective Opportunit Design * Collectin se
y Developm g Data Data Conclusi
ent on &
Report
 Research Process
• Specifying the area and the objective of the
study
• Defining & Refining Problem Defining Problem
and Refining Problem through Literature Review,
Interviewing relevant people, Group Discussion
with relevant people, etc.
• Hypotheses Development
• Preparing Research Design
• Collection of data
• Analysing the data
• Interpreting the results and drawing conclusions
based on data
THE HIERARCHY
MANAGEMENT DILEMMA (Level 1)

MANAGEMENT QUESTIONS (Level 2)

RESEARCH QUESTIONS (Level 3)

• LEVEL 1 -- The top management’s
concerns about the business . These are
the symptoms of the actual problem .

• LEVEL 2 -- The managers try to raise the

issues underlying the symptom .

• LEVEL 3 -- The researcher tries to

conceptualize the symptoms in the form of
basic issues or causes .
 Some Examples …..

Management Dilemma ….. (In terms of

observations on a general level)

Declining sales, Increasing employee

turnover, Large no. of defective
products, Large no. of consumer
complaints …..
 Continued…..

Management Questions ….. (In terms

of questions to be answered but not
suggesting kind of research to be
undertaken)

Why are the sales declining? Are we on

the right track? Are we meeting our
goals? Why are the departmental costs
on the rise?
 Continued…..

Research Questions….. (In terms of fact

finding & information gathering questions
in the form of unstructured exploration)
What factors are contributing to the
failure of XYZ dept? How good is the
customer service? What kind of
complaints are recurrent? What is the
system of quality control in XYZ dept?
 Continued…..

Investigative Questions ….. (In terms of

more specific questions after a careful
informal exploration)

How attractive are our services? Which

region is receiving more complaints ? Is
there enough manpower to handle the
cases? What is the system of redressal?
Are there any specific factors influencing
employee performance?
 Continued…..

Measurement Questions….. (In terms of

specific information to be sought)

How shall we measure the quality of our

service ? Which areas (of quality) need
to be covered ? What information about
the employees is required (morale,
training, experience, health etc.) ? How
do we get this info?
 MANAGEMENT
DILEMMA

Management Management
Question 1 Question 2

Research Research Research Research

Question 1 a Question 1 b Question 2 a Question 2 b
 CONCLUSION

When we proceed from Management

Dilemma to Research Questions we move
from -----

1) general level to a specific &

focused level.
2) symptoms to the root causes.
 Have we understood ?
 The deposits in the bank are to be increased.
 Computer department shows excessive
turnover among programmers.
 New health insurance is not picking up sales.
 New branch is to be opened in rural area.
 Change in the advertising strategy is to be
brought about.
 FORMULATION OF

A RESEARCH PROBLEM
 Research Problem

 Should be clearly stated.

 Should be focused.

 Should convey the right meaning.

• Research problem flows from the
research question.

• It’s stated in a statement form.

 Some Examples
1) Effect of new packaging on the sales of a
product.
2) Effects of downsizing on the brand image
of the company.
3) Study of performance management
systems in IT industry.
4) Case study of SVKM’s NMIMS University.
5) Evaluation of ABC Policy / Programme /
Process.
 Objectives
These are specific, concrete &
achievable goals of research. They
generally flow from
the research questions. They give the
direction to the research.
e.g. To study the consumer perception of the
product.
To analyse the annual reports of the
chosen
companies w.r.t. the chosen parameters.
 Exercise…
Write the objectives for the

Research problems in slide no. 4

 Variables
It is an attribute that takes different
values (for the same object at different
times or different objects at the same
time).

e.g. age, attitude, absenteeism, profits,

production units, job satisfaction,
attrition
 Types of Variables

Extraneous

1) Control

Independent Dependent
2) Moderating
(Context)

3) Intervening
 Independent Variable
It influences the dependent variable.
 It is manipulated by the researcher
in experimental research.
 Also known as treatment variable in
experimental research.
 Research may have more than one
independent variable.
 Dependent Variable

 It is affected by the changes in the

independent variable.
 It is not manipulated by the
researcher.
 Research may have more than one
dependent variables.
 Extraneous variables
1) Control--- it is controlled by the researcher
by keeping the values constant in both the
groups especially in experimental research.

2) Moderating--- it is studied by the researcher

along with the other variables.
3) Intervening--- it can neither be controlled
nor studied. Its effect is to be inferred from
the results.
 Exercise … Identify & classify the
variables in the given problem.

1. A study of effect of training on the performance of

employees.
2. A study of effect of celebrity endorsements on
the sales of a product.
3. A study of relationship between motivation & job
satisfaction.
4. A study of customer satisfaction at a retail outlet.
 Definitions of the terms

Types -----
1) Conceptual [ Theoretical basis ]
2) Operational [ Research basis ]
 Operational Definition
includes ----

 Contents of the concept

Areas of measurement of each
content
Sources of data
Scoring / Categorizing
 Exercise…

Define the terms / variables in

the

problems in the slide no. 12

HYPOTHESES
 HYPOTHESES

A logical relationship between two or

more variables expressed in the form
of a testable statement.
It is an intelligent guess of the probable
solution to the problem.
They are derived from the theoretical
framework formulated for the research.
 TYPES of HYPOTHESES

1) Null

2) Alternate ( Positive or Research )

a) Non directional

b) Directional
 Meaning … Null Hypothesis

Null hypothesis assumes no difference

or no relationship between the two
hypothesized variables.
It indicates unbiased attitude of the
researcher to the research.
 It is represented as Ho.
It is a statement which can be tested
Statistically .
When previous research literature is not
available sufficiently or it does not give a
clear cut direction, it is better to frame a
hypothesis in null form.
 Examples…

1) There is no significant difference in the

sales of the product before & after new
packaging. M1=M2

2) There is no significant relationship

between TV viewership & aggression among
teenagers.
Meaning … Alternate Hypothesis

It assumes some difference or some

relationship between the hypothesized
variables.

When sufficient research literature is

available indicating definite difference or
relationship, alternate hypothesis is
formulated.
 It is represented as H1 .

It can be tested statistically as null

hypothesis.
 Examples…

1) The performance of motivated

employees is significantly different than
those who are not motivated.

2) The sales of a product is significantly

related to the expenditure on the
advertisement.
3) The debt equity ratio of org. ABC
is significantly higher than that of
org. XYZ .
4) The level of motivation of male
employees is significantly lower than
that of female employees.
 Types of Alternate Hypotheses

Examples no. 1 & 2 belong to one category

AND
Examples no. 3 & 4 belong to other category.

Can you differentiate between these two???

 Explanation…

Examples 1 & 2 tell us that they do differ

from 3 & 4. But do not tell us which
variable in statement 1 & 2 has a higher
value than the other. It does not tell us
the DIRECTION of magnitude.

Hence they are known as

NON - DIRECTIONAL HYPOTHESES.
Whereas examples 3 & 4 not only tell us
that the variables mentioned therein are
not equal in magnitude but also tell us
which variable is having a higher
magnitude . They provide us the direction
of the magnitude .
Hence they are known as
DIRECTIONAL HYPOTHESES.
Let’s check our understanding…..

Frame different types of hypotheses for

following problems …

1. A study of relationship between e-shopping

habits & some demographic variables.

2. A study of relationship between interest

rates & the investment habits.

3. A study of effectiveness of sachet & bottle

packaging of shampoo in terms of consumer
preference.
 Relationship between
Hypotheses & Theory
Hypothesis ----- HYPO & THESIS
Hypo = Below or Less than
Thesis = Theory
Hypothesis means a proposition which is
at a lower level than a theory.
Hypothesis which are tested & retained
many times will lead to the formulation of
a theory. Theory which is proven true
many times leads to the formulation of a
law.
 Review of Related Literature
Literature survey is important because it …

 gives you the work done in the past.

 helps you identify the variables studied before.

 gives you the research designs previously used.

 helps you to formulate the hypotheses.

 cautions you about the possible problems in future.

 avoids unnecessary repetition.

 leads us to sound theoretical or conceptual framework.

 helps you to identify research gaps.

 Sources of Literature Survey

 Internet
 Library ( books, journals, year books,
encyclopedia)
 Govt. Reports (commissions , Plan & policy
documents, census)
 Unpublished research ( Degree level work)
 Company documents ( annual reports,
budgets, key note addresses , AGM minutes)
 Conference proceedings
 Other databases
Related literature helps the researcher
in constructing a Concept Map which
is a schematic representation of the
relationship of different variables
involved in the study.
 CONCEPT MAP

EXPERIENCE JOB
SATISFACTION

CONFIDENCE
SKILL SET

PERFORMANCE
TRAINING
EDU & PROF
QUALIFICATION

MORALE
HEALTH AGE

MOTIVATION
SAMPLING
 SAMPLING

How would you know if the rice is properly

cooked ?
How would you know that the bunch of grapes
is good just by testing 1 or 2 grapes ?

This is S A M P L I N G in day to day life.

So….What is Sampling according to you ???

 Meaning…
A Sample is a part of the population which is studied
in order to make inferences about the whole
population.

Research needs the data to be collected from the

concerned people. If you collect the data from all the
concerned people you would be spending a lot on all
the resources… human, money, time, energy etc. So
choose only a FEW .
But how to choose these FEW is the main concern of
the researcher.
 • The RIGHT people , objects
• The ADEQUATE number
• PROPER method of selection

must be followed if you want to make your

research more meaningful & valid.
 Some Terms Defined…

SAMPLING TRAIT: Characteristics used for

selection.
POPULATION : Entire group of people or objects
of interest.

 ELEMENT : A single member of the population.

 POPULATION : A list of all the elements in the
FRAME population from which sample is
drawn.
 SAMPLE : A subset of the population.
 SUBJECT : A single member of the sample.
 SAMPLE SIZE : Total no. of subjects in the
sample.
Relation between Sample & Population

SAMPLE POPULATION

Statistics Estimate Parameters

Mean, S.D., Mean, S.D.,
Variance Variance
 Why Sampling ???

To save on resources.
To reduce the errors.
To increase accuracy & precision.
To decrease data obsoleteness.
To avoid wastage of population .
(Destructive Sampling ….while testing for
quality you consume the entire
population)
 The objective of sampling is to draw accurate
inferences about the universe or the population
parameters ( which are unknown ) from the unit
sample statistic ( which is known … observed &
measured ) .

This helps the researcher to generalise about

the results .
Advantages of Sampling…
Smaller no. is handled
Increases accuracy of data
Ensures greater response rate
Easy supervision
Ensures greater co operation from
sample
Helps researcher go systematically
Resources efficiently utilized
 Principles of Sampling…

Sampling units must be ---

chosen in a systemic & objective manner

clearly defined & easily identifiable
units must be independent of each other
used throughout the study
true representative of the population
 Sample Design

Sample design is a systematic plan for

obtaining a sample from the given population.

WHY Sample design…?

To ensure precision & objectivity in

sampling .
To reduce sampling error.
 Steps of Sample Design
Finalize parameters of interest
• Define type of the universe
• Decide the sampling unit or unit of
analysis (house, person, object)
• Prepare the sampling frame (List)
• Decide sample size
• Finalise budget
• Finalise sampling procedure (type &
method)
 Good Sample Design
• Truly representative
• Smaller sampling error
• Unbiased
• Within budgetary provisions
• Results generalizable
 Possible Errors

1) Sampling Error
(due to sample size)

2) Non Sampling or Systematic Error

(due to incorrect sampling frame, faulty
sample design)
 Types of Sampling

Probability Non-Probability

• Every unit of pop. has • Researcher decides on

equal chance of being the sample unit
selected.
• Not representative
• Highly representative
 Types…contd..
Conditions :

Probability Non-Probability
 Complete list is  No list is required
required  Size of universe may
 Size of universe must not be known
be known  Each unit may not
 Each unit must have have an equal chance
an equal chance of of selection
selection
 Desired sample must
be specified
 Techniques of Sampling

PROBABILITY NON-PROBABILITY

Simple Random Convenience

Stratified Random Purposive
Systematic  Judgment
 Quota
Cluster
Snowball
Volunteer
 Sample Size

Sample size depends upon the precision of

results expected.
Sample should be sufficiently large to
conclude generalizable results.

For this matter we have to take into account

the level of confidence (0.95 or 0.99).

Different formulae are used depending upon

the
constraints. Commonly used one is….
S = n/ 1+n(e)2

Higher the sample size greater is the

generalizability, but you lose on precision of
sampling.
Prepare a sampling plan for the research
problem that you have selected.

Explain why you will follow the technique

you have selected.
RESEARCH DESIGNS
 Research Designs
Meaning :

• A detailed plan & structure of investigation so

conceived as to find answers to the research
questions.

• A blueprint for the smooth conduct of research.

• Henry Manheim --- RD not only anticipates

and specifies the countless decisions
connected with data collection , processing &
analysis but it presents a logical basis for
these decisions.
 Why Research Designs ?
It provides a blueprint.
It limits the boundaries of research.
(Delimitations)
It enables the researcher to anticipate the
potential problems & can prepare him to
tackle the same.
It ensures better co ordination among the
members of the research team.
 Manheim feels…

Goals of RD ---
• To amass more & more evidence in support of
given hypo. & eliminate alternative hypo.
• To make the study replicable( worth repeating if
the results are significant).
• To determine if pilot study is needed.
• To associate variables with one another.
• To plan appropriate strategy for data collection.
Contents of Research Proposal

• Need for study

• Review of Related Literature
• Objectives of the study
• Definitions of the terms
• Delimitations of the study
• Concept Map
• Hypotheses
• Research Design
• Tools & Techniques of data collection
• Sampling design
• Data collection procedures
• Proposed techniques of data analysis
• Budget
• Time schedule
 Types of Research Designs

1) EXPLORATORY--- undertaken to understand the

problem when not much is known about the
problem or not much research evidence is available.
(identification of variables involved).

2) DESCRIPTIVE--- undertaken in order to ascertain &

describe the characteristics of variables involved.

3) EXPLANATORY--- undertaken when relationship

among different variables is to be established.
 EXAMPLES…

EXPLORATORY---- Feasibility studies are

exploratory in nature. New areas of research
eg. ethnic culture & its effect on org. , diversity in
org. etc.

Descriptive--- Customer profile, Market trend,

Consumer perception etc.

Explanatory--- Cause & effect relationship is estd.

through these studies. eg. Relationship between
expenditure on advertising & sales
 Relationship among three types
Every subject passes through all the three types of
research. Initially when either nothing or very little is
known ,one goes through the phase of exploration.

Once the variables are identified then the subject takes

a turn to descriptive studies & tries to get a profile of
different concerned attributes.

After getting a clear description of the variables the

researcher goes to establish the relationship of these
variables. This is culminated by the testing of various
hypotheses which ultimately leads to the formulation of
a theory.
 Relationship …..

EXPLO- DESCRI- EXPLANA-

RATORY PTIVE TORY
Study Study Study

PHASE I PHASE II PHASE III

 Steps of an Exploratory Study

1) Identify the problem

2) Gather preliminary info. through interviews

3) Form focus groups

4) Arrive at conclusions
 Steps of a Descriptive Study
( SURVEY)

1) Identify the problem

2) Formulate objectives
3) Review literature
4) Identify variables
5) Draw Concept Map
6) Formulate hypotheses (if any)
7) Construct tools
8) Collect data
9) Analyse data ( Descriptive Statistics )
10) Test hypotheses (if any)
11) Arrive at conclusion
 Steps of an Explanatory Study

1) Identify the problem

2) Formulate objectives
3) Review Literature
4) Identify variables
5) Draw Concept Map
6) Formulate hypotheses
7) Construct tools
8) Conduct experiment ( if any)
9) Collect data
10) Analyse data (Descriptive & Inferential Statistics)
11) Test hypotheses
12) Arrive at conclusion
 Types of Explanatory Study
Explanatory studies are conducted to arrive at the
nature of relationship among different
variables.They try to establish cause & effect
relationship between variables.this is done in
two ways.

1) Ex-post facto study

2) Experimental study
a) Field expt.
b) Lab expt.
EXPLANATORY STUDIES
Types of Explanatory Studies

Explanatory studies are also known as

CAUSAL STUDIES

1) Ex Post Facto Studies

2) Experimental Studies
 Ex Post Facto Studies

It is an empirical enquiry for situations that have

already occurred. Investigator has no control over
the variables in the sense that he is not able to
manipulate them. He can only report what has
happened & establish cause & effect relationship.

eg. Market failure of a product , Sudden rise of a

share’s market price ,
 Experimental Studies
The purpose of experimental research is to allow the
researcher to control the situation so that CAUSAL
relationship among variables may be evaluated.The
experimenter therefore manipulates a single variable in
the study & holds the remaining variables constant so as
to study the effect of the
INDEPENDENT variable on the DEPENDENT variable.

eg. The effect of varying amount of overtime on output of

the employees.
The independent variable is “Variation in overtime” &
The dependent variable is “Output or performance’’.
 The researcher , through the theoretical
framework finalizes the variables he is interested in .
He then has to decide the variables he wishes to
control & the
ones he wishes to study as covariates
(moderating variables).

This is reflected in the Concept Map that he

prepares .
 INTERPLAY OF VARIABLES

CONTROL INTERVENING
VARIABLES VARIABLES
DEPENDENT
INDEPENDENT VARIABLE
VARIABLE

MODERATING

VARIABLES
 Experimental Studies

Types :

Field Experiments ---- Less control on the

variables therefore higher generalizability.
Natural setting.

Laboratory Experiments ---- Tight control on the

variables hence lesser generalizability.
Artificial setting.
Laboratory Field
Artificial Real
Expts Setting Setting Expts
Essential Components of an Experiment

1) Groups --- a) Experimental b) Control

2) Treatment to be given
(Expt /Independent variable)
3) Variables --- All types
4) Matching on all the variables except treatment
5) Testing of Hypotheses

eg. A study of effect of payment by piece rate system

on the production.
 Validity of Experiments
Types of Validity :

a) Internal --- Is the expt. an expt. in the real sense of

the term ? i.e. Is the independent variable the only
cause of the changes in the dependent variable?

b) External --- Are the results obtained from the expt.

applicable in the real world ?
Factors affecting Internal Validity

 History
 Maturation
 Testing ( effect of pre test on post test )
 Instrumentation ( change in the observed
criteria at the pre & post test )
 Selection bias
 Statistical regression
 Mortality
Factors affecting External Validity

 Interaction of treatment & selection

 Higher the internal validity, lesser will be the

external validity
Various Effects in Experiments

 Hawthorn Effect
 Halo Effect
 Experimenter Effect
 Pygmalion Effect
 Guinea Pig Effect
 Contamination Effects
Types Of Experimental Designs

1) Pre Experimental ( Least control )

2) Quasi Experimental ( Moderate control )

3) True Experimental ( Tight control )

( Randomized Sampling ) indicated by R
 Some Designs…
1) Single Shot Study
X O
2) Single Group Design
O1 X O2
3) Two Group Design
O1 X O2 Experimental Group
O3 O4 Control Group
4) Time Series
O1 O 2 O 3 X O4 O5 O6
 Let’s try …..

Design a two group study to test the

effectiveness of advertising strategies on sales.

 Assignment…

Find out examples of experimental research

in your area of interest.

TOOLS & TECHNIQUES
OF RESEARCH
 Qualities of a Good Tool

• VALIDITY
• RELIABILITY
• OBJECTIVITY
• USABILITY
• ADEQUACY
• DISCRIMINATING POWER
 Points to consider while
Preparing a Tool
1) Objectives

2) Operational definitions

3) Sequence of items (general to specific;

simple to difficult/complex; logical)

4) Ease of Scoring & Coding

 Points for Discussion

1) Description of the tool

2) Merits

3) Limitations

4) How to overcome the limitations

5) How to use the tool

 Tools & Techniques

TOOLS TECHNIQUES

1) Questionnaire 1) Observation
2) Schedule 2) Interview
3) Checklist 3) Sociometric
4) Rating scale 4) Projective
Applications of Data

Analysis Techniques
 Data Analysis

1) Why ?
2) How ?
3) Some important considerations before
analysis ------
a) Type of data
b) Objectives
c) Hypotheses
 Consideration 1
Types of Data ( Scales )

a) Nominal

b) Ordinal

c) Interval

d) Ratio
 Consideration 2
Objectives

What are we trying to find out ?

In order to achieve this, what kind of

information is required ?

Which tools are giving this information ?

 Consideration 3
Hypotheses
What is the type of hypotheses framed ?

What is the level of significance set ?

What type is the available data ?

Which technique will meet the research needs

keeping the type of data in mind ?
 Descriptive Analysis
I) Measures of Central Tendency---
Mean, Median, Mode

II) Measures of Variability/Dispersion---

Range, Average deviation, Quartile
deviation, Standard deviation

III) Measures of Correlation---

IV) Normal distribution---

 Inferential Statistics

Types of Inferential Statistics

NON
PARAMETRIC
PARAMETRIC
 Parametric Statistics

Essential conditions of usage -----

1) The data is in the interval or ratio scale.

2) Both the groups have equal variance.

3) The trait/variable is normally distributed.

4) The sample is randomized.

 Non - parametric Statistics

No such conditions as parametric statistics.

But when the data is ---
1) in either nominal or ordinal scale ,
2) small in size ,
3) not randomly selected ,
4) homogeneity of variance cannot be
established &
5) variable is not normally distributed in the
population ( skewed )
Researcher should go for non-parametric statistics.
 Certain Terms defined ---

1) Levels of Significance

2) Degrees of Freedom

3) Critical Value

4) Tails of a Test

5) Area of Rejection
 Testing of Hypotheses

If the calculated value of a given statistic is lesser

than the table value of that statistic, then the
hypothesis is RETAINED.

If the calculated value of a given statistic is greater

than the table value of that statistic, then the
hypothesis is REJECTED.
Calculated value > Table value ( REJECT )
Calculated value < or = Table value ( RETAIN )
 Tails of a Test

For Null hypotheses two tailed test is applied.

For Non--directional hypotheses two tailed test
is applied.

For Directional hypotheses one tailed test is

applied.
Can you tell WHY ?????
 Statistical Significance
What is the significance of SIGNIFICANCE?

Levels of Significance---
1) 0.05 & 2) 0.01

Levels of Confidence---
1) 95 % & 2) 99 %

When to use the terms---

Significance & Confidence
 Types of Errors
Type I Error is committed when TRUE NULL
hypothesis is REJECTED. ( alpha )
[Innocent is unjustly convicted or punished]

Type II Error is committed when NULL

hypothesis is RETAINED, when it is not TRUE.
( Beta )
[Unjust acquittal of a guilty person]
 Steps of Testing Hypotheses

1) Frame the hypothesis.

2) Choose the appropriate statistical test.

3) Decide the level of significance.

4) Calculate value.

5) Refer to the appropriate table & get the critical value.

6) Compare both the values & decide about the

significance of your results.
 Some Major Statistical Tests

1) Chi square test

2) t test

3) Z test

4) F test
 Chi Square Test

Non-parametric test , used when the data is in

the nominal scale or grouped in the nominal
categories.
eg. YES NO

35 68

Do the people differ significantly in their opinion?

 Chi Square Test

Favourable Unfavourable
Men 53 37

Women 64 46

Do men & women differ significantly in their

opinions?
 Z Test & t - Test

Parametric tests are used when you want to

compare sample statistics of two groups.
Comparison of means, s.d., percentages of TWO groups.

Z test is used when the sample size is large (> 30 ) &

t test is used when the sample size is small (30 or < 30)
 F Test ( ANOVA)

Parametric test. When more than two groups

are to be compared F Test is applied.

ONE independent variable ONE WAY

ANOVA
TWO independent variables TWO WAY
ANOVA
 RESEARCH

PROPOSAL & REPORT

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12/08/21 Session 11 157
RESEARCH PROPOSAL
 What ?

• It is a detailed research design.

• An activity that incorporates decisions

made during early research planning
phases including the management –
research question hierarchy & exploration.

• It is a work plan which tells us what, why,

how, where , when & to whom it will be
done.

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 It is a road map , showing clearly the
location from which the journey begins, the
destination to be reached & the method of
getting there.

A well prepared proposal includes

potential problems that may be
encountered along the way & methods for
avoiding or working around them, as the
road map indicates alternate routes for a
detour.

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12/08/21 Session 11 160
 Why ?

1) For the sponsor---to decide the budget, to judge

the worthwhile ness of the research,
to assess the capability & sincerity of the
researcher, it displays the discipline of the
researcher, a document for the discussion.
2) For the researcher---to plan & review the steps,
helps to asses various ways of attacking the
problem, to identify & remove flaws, if any ,
through discussion, to monitor progress, it
puts constraints on time & budget( researcher
has to work within prescribed limits).

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 How ?
CONTENTS…..
Executive summary (mgmt. dilemma, mgmt.
questions, research questions, objectives,
benefits of research)
Problem statement (need of research, its
significance)
Research Objectives
Literature review
Variables--- their types & operational definitions
Hypotheses
Research design ( type of research, tools, sampling
plan , data collection plan or procedure)
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 Contd …..
Proposed data analysis ( simple charts & dummy
tables) with the rationale for each technique to be
used
Nature & form of results ( connecting objectives &
analysis) with the format of results to be provided.
i.e. recommendations, action plans, strategic plans
etc.
Budget
Time schedule
Facilities required
Project management ( organized plan of action)
Bibliography
Appendices
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 RESEARCH REPORT

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12/08/21 Session 11 164
 What & Why ?

WHAT-----Written document of the stages

of research with findings &
recommendations

WHY ----- Enables the manager to weigh the

facts arguments presented therein &
implement the acceptable recommendations
with a view to close the gap between the
present & the desired state. It is a document
containing research plan put into action.

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 Parts of Research Report

i) Preliminary Section

ii) Main Body

iii) End Section

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 Preliminary Section
i) The Title Page ( Title , Sponsor of the study,
month & year of submission)
ii) EXECUTIVE SUMMARY
iii) Acknowledgement
iv) Certificate, if any ( required for degree work
or Govt. projects)
v) Table of Contents
vi) List of Tables
vii) List of Graphs
viii) List of Figures/ diagrams
ix) List of abbreviations
x) Glossary Dr. Vidya Naik
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 Main Body
a) Introduction ( Need of research, Problem
identification, Objectives, Variables,
Operational definitions, Hypotheses,Research
paradigm , Delimitations)
b) Research Design ( Type of study, Tools,
Sampling design, Data collection & Analysis)
c) Final section ( Conclusions, Recommendations
& Limitations, Researchers’ insights for
further studies)

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 End Section
i) Bibliography/ References( must be
presented in APA format.)
[books, journals, reports, unpublished
documents, web sites …with date of access]

ii) Appendices

iii) Research Team

iv) Time Schedule

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