INTRODUCTION TO

RESEARCH
CHAPTER OBJECTIVES
• After completing Chapter 1 you should be able to:
1. Describe what research is and how it is defined.
2. Distinguish between applied and basic research, giving examples, and discussing why they would
fall into one or the other of the two categories.
3. Explain why managers should know about research.
4. Discuss what managers should and should not do in order to interact most effectively with researchers.
5. Identify and fully discuss specific situations in which a manager would be better off using an internal
research team, and when an external research team would be more advisable, giving reasons for the
decisions.
6. Discuss what research means to you and describe how you, as manager, might apply the knowledge
gained about research.
7. Be aware of the role of ethics in business research.
 What is
RESEARCH?
Research, a somewhat intimidating term for some, is simply the process of finding
solutions to a problem after a thorough study and analysis of the situational factors.
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. As is well known, sometimes managers make good
decisions and the problem gets solved, sometimes they make poor decisions and the
problem persists, and on occasions they make such colossal blunders that the
organization gets stuck in the mire.
The difference between making good decisions and committing
blunders lies in how managers go about the decision-making
process. In other words, good decision-making fetches a - yes
answer to the following questions;

Do managers identify where exactly the problem lies, do they

correctly recognize the relevant factors in the situation needing
investigation?

Do they know what types of information are to be gathered and

how, do they know how to make use of the information so
collected and draw appropriate conclusions to make the right
decisions?

And finally, do they know how to implement the results of this

process to solve the problem?
 The Excitement of Research and
Why Managers Should Know
about Research

Modern technology has made research an exciting and a relatively smooth

process. Today a personal computer with a modem or any means to an Inter-
net connection places one within easy reach of knowledge of what is happening
in the global markets and how the world economy is impacting on business.
By grasping the fundamentals of the research process and keeping abreast of
modern technology, such as computers with enormous capability to store and
retrieve information, you as a manager can face the competitive global market
with its multitude of complex and confusing factors with greater confidence.
 For example, you can interact more
Knowledge of research not only
effectively with research
helps one to look at the available
consultants who work for you, you
information in sophisticated and
can discriminate between good and
creative ways in the fast-paced
bad studies published in
global environment that busi-
professional journals, and if so
nesses face, but this knowledge
desired, you yourself can undertake
also helps in other ways.
research to solve problems.
Moreover, knowledge in the business area is exploding and
there is an overwhelming maze of information available
through the Internet, which has to be sifted through to
determine its reliability. Identifying the critical issues,
gathering relevant information, analyzing the data in ways
that would help decision making, and implementing the
right course of action, are all facilitated by understanding
business research. After all, decision making is merely a
process of choosing from among alternative solutions to
resolve a problem and research helps to generate viable
alternatives for effective decision making.
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. It comprises a
series of steps designed and executed, with the goal of finding answers to the issues that
are of concern to the manager in the work environment. This means that the first step in
research is to know, To identify as clearly
Where the problem and specifically as
areas exist in the possible the problems
organization and, that need to be studied
and resolved.

Once the problem that needs attention is clearly defined, then steps can be taken to gather information,
analyze the data, and determine the factors that are associated with the problem and solve it by taking
the necessary corrective measures.
 Inquiry Investigation
Research thus
encompasses
the processes of

Examination Experimentation
These processes have to be carried out systematically, diligently,
critically, objectively, and logically. The expected end results would
be the discovery that will help the manager to deal with the problem
situation.

The difference between the manager who uses common sense alone
to analyze and make a decision in a given situation, and the
investigator who uses a scientific method, is that the latter does a
systematic inquiry into the matter and proceeds to describe, explain, or
predict phenomena based on data carefully collected for the purpose.
 
 DEFINITION OF RESEARCH

We can now define business research as an organized, systematic,

data-based, critical, objective, scientific inquiry or investigation into
a specific problem, undertaken with the purpose of finding answers or
solutions to it.
In essence, research provides the needed information that guides managers to make informed
decisions to successfully deal with problems. The information pro- vided could be the result of a
careful analysis of data gathered firsthand or of data that are already available (in the company,
industry, archives, etc.).
DATA can be QUANTITATIVE (as generally gathered
through structured questions)
or QUALITATIVE (as generated from the broad answers
to specific questions in inter- views, or from responses
to open-ended questions in a questionnaire, or
through observation, or from already available
information gathered from various sources).
RESEARCH AND THE MANAGER

In business, research is usually primarily

conducted to resolve problematic issues in, or
interrelated among, the areas of accounting,
finance, management, and marketing.
 Accounting
Budget control systems, practices and Finance
procedures are frequently examined. The operations of financial institutions, optimum
Inventory costing methods, accelerate financial ratios, mergers and acquisitions,
depreciation, time-series behavior of leveraged buyouts, intercorporate financing yields
quarterly earnings, transfer pricing, cas on mortgages, the behavior of the stock exchange,
recovery rates, and taxation methods are and the like, become the focus of investigation.
some of the other areas that are researched

Management Marketing
Research could encompass the study o employee Research could address issues pertaining
attitudes and behaviors, human resources to product image, advertising, sales pro
management, the impact o changing motion, distribution, packaging, pricing,
demographics on management practices, after-sales service, consumer preferences,
production operations management, strategy new product development, and other
formulation, information systems, and the like. marketing aspects.
 Exhibit 1: Some Commonly Researched Areas in Business
1.  Employee behaviors such as performance, absenteeism, and turnover.
2. Employee attitudes such as job satisfaction, loyalty, and organizational commitment.
3. Supervisory performance, managerial leadership style, and performance appraisal systems.
4. Employee selection, recruitment, training, and retention.
5. Validation of performance appraisal systems.
6. Human resource management choices and organizational strategy.
7. Evaluation of assessment centers.
8. The dynamics of rating and rating errors in the judgment of human performance.
9. Strategy formulation and implementation.
10.Just-in-time systems, continuous-improvement strategies, and production efficiencies.
11. Just-in-time systems, continuous-improvement strategies, and produc- tion efficiencies.
12.Organizational outcomes such as increased sales, market share, profits, growth, and effectiveness.
13.Brand loyalty, product life cycle, and product innovation.
14.Brand loyalty, product life cycle, and product innovation.
15.Impression management, logos, and image building.
16.Product positioning, product modification, and new product development.
17.Cost of capital, valuation of firms, dividend policies, and investment decisions.
18.Risk assessment, exchange rate fluctuations, and foreign investment.
19.Tax implications of reorganization of firms or acquisition of companies.
20.Collection of accounts receivable.
21.Development of effective cost accounting procedures.
22.Qualified pension plans and cafeteria type of benefits for employees.
23.Deferred compensation plans.
24.Installation of effective management information systems.
25.Advanced manufacturing technologies and information systems
26.Design of career paths for spouses in dual-career families.
27.Creative management of a diverse workforce.
28.Cultural differences and the dynamics of managing a multinational firm.
29.Alternative work patterns: job sharing, flexitime, flexiplace, and part- time work.
30.Downsizing.
31.Participative management and performance effectiveness.
32.Differences in leadership positions, salaries, and leadership styles.
33.Instrument development for assessing ―true‖ gender differences.
34.Installation, adaptation, and updating of computer networks and software suitable for creating effective
information systems for organizations.
35.Installation of an effective Data Warehouse and Data Mining system for the organization.
36.Keeping ahead of the competition in the new millennium.
 
TYPES OF BUSINESS RESEARCH: APPLIED AND BASIC

APPLIED RESEARCH BASIC RESEARCH

• is to solve a current problem • is to generate a body of
faced by the manager in the knowledge by trying to
work setting, demanding a comprehend how certain
timely solution. For example, a problems that occur in
particular product may not be organization can be solved.
selling well and the manage
might want to find the reasons
for this in order to take
corrective action.
Research done chiefly to enhance the understanding of
certain problems that commonly occur in organizational
settings, and seek methods of solving them, is called basic or
fundamental research. It is also known as pure research.
The findings of such research contribute to the building of
knowledge in the various functional areas o business. Such
knowledge generated is usually later applied in
organizational settings for problem solving.
MANAGERS AND RESEARCH

Managers with knowledge of research have an advantage over those without. Though you
yourself may not be doing any major research as a manager, you will have to understand,
predict, and control events that are dysfunctional to the organization.

For example, a new product developed may not be taking off or a

financial investment may not be paying off as anticipated. Such
disturbing phenomena have to be understood and explained. Unless this
is done, it will not be possible to predict the future of that product or the
prospects of that investment, and how future catastrophic outcomes can
be controlled. A grasp of research methods will enable managers to
understand, predict, and control their environment.
In sum, being knowledgeable about research and research
methods helps professional managers to:
1. Identify and effectively solve minor problems in the work setting.
2. Know how to discriminate good from bad research.
3. Appreciate and be constantly aware of the multiple influences and multiple
effects of factors impinging on a situation.
4. Take calculated risks in decision making, knowing full well the probabilities
associated with the different possible outcomes.
5. Prevent possible vested interests from exercising their influence in a situation.
6. Relate to hired researchers and consultants more effectively.
7. Combine experience with scientific knowledge while making decisions.
THE MANAGER AND THE CONSULTANT–RESEARCHER
As a manager, you will often need to engage a consultant to study some of
the more complex, time-consuming problems that you might encounter. It
is thus important to be knowledgeable about how to locate and select a
researcher, how to effectively interact with the consultant (the terms
researcher and consultant are used interchangeably), what the manager–
researcher relationship should be, and the advantages and
disadvantages of internal versus external consultants. It has to be
emphasized that the genuine motive of the manager in hiring consultants
should be for problem solving and not for promoting self-interests or
advancing one‘s pet projects and ideas.
The Manager–Researcher Relationship
When the manager is knowledgeable about research, then the interactions
between the manager and the researcher become more meaningful,
purposeful, and beneficial both to the organization and the researcher alike.
Quite frequently, organizations also hire outside research agencies to identify and solve
problems for them. In such a case, the manager must not only interact effectively
with the research team, but must also explicitly delineate the roles for the
researchers and the management. The manager has to inform the researchers
what types of information could be provided to them, and more important, which
of their records would not be made.

The manager has to inform the researchers what types of information could be
provided to them, and more important, which of their records would not be made
available to them.

Making these facts explicit at the very beginning can save a lot of frustration for
both parties
Values

Beyond specifying the roles and constraints, the manager should

also make sure that there is a congruence in the value systems of
management and the consultants.

For example, the research team might very strongly believe and
recommend that reduction of the workforce and streamlining
would be the ideal way to significantly cut down operating costs.
 To summarize, the manager should make sure while
hiring researchers or consultants that:

1. The roles and expectations of both parties are made explicit.

2. Relevant philosophies and value systems of the organization are clearly stated,
and constraints, if any, communicated.

3. A good rapport is established with the researchers, and between the

researchers and the employees in the organization, enabling the full cooperation
of the latter.
INTERNAL VERSUS
EXTERNAL
CONSULTANTS/RESEARCHERS
ADVANTAGES AND DISADVANTAGES
INTERNAL
• Some organizations have their own consulting or research department, which might be called
CONSULTANTS/RESEARCHERS
the Management Services Department, the Organization and Methods Department, R&D
(research and development department), or by some other name. This department serves
as the internal consultant to subunits of the organization that face certain problems and seek
help. Such a unit within the organization, if it exists, would be useful in several ways, and
enlisting its help might be advantageous under some circumstances, but not in others.
• Manager often has to decide whether to use internal or external researchers. To reach a
decision, the manager should be aware of the strengths and weaknesses of both, and weigh
the advantages and disadvantages of using either, based on the needs of the situation.
 Advantages of Internal Consultants/Researchers
There are at least four advantages in engaging an internal team to do the research project:

1.The internal team would stand a better chance of being readily accepted by the employees in
the subunit of the organization where research needs to be done.
2.The team would require much less time to understand the structure, the philosophy and
climate, and the functioning and work systems of the organization.
3. They would be available for implementing their recommendations after the research findings
are accepted. This is very important because any bugs in the implementation of the
recommendations could be removed with their help. They would also be available for
evaluating the effectiveness of the changes, and considering further changes if and when
necessary.
4. The internal team might cost considerably less than an external team for the department
enlisting help in problem solving, because they will need less time to understand the system
due to their continuous involvement with various units of the organization. For problems that
are of low complexity, the internal team would be ideal .
Disadvantages of Internal Consultants/Researchers
There are also certain disadvantages to engaging internal research teams for purposes of problem
solving. The four most critical ones are:

1. In view of their long tenure as internal consultants, the internal team may quite possibly fall into a
stereotyped way of looking at the organization and its problems. This would inhibit any fresh ideas and
perspectives that might be needed to correct the problem. This would definitely be a handicap for situations
in which weighty issues and complex problems are to be investigated.

2. There is scope for certain powerful coalitions in the organization to influence the internal team to conceal,
distort, or misrepresent certain facts. In other words, certain vested interests could dominate, especially in
securing a sizable portion of the available scant resources.
3. There is also a possibility that even the most highly qualified internal research teams are not perceived as
experts by the staff and management, and hence their recommendations do not get the consideration and
attention they deserve.

4. Certain organizational biases of the internal research team might in some instances make the findings less
objective and consequently less scientific.
EXTERNAL CONSULTANTS/RESEARCHERS

The disadvantages of the internal research teams turn out to be the advantages of
the external teams, and the former‘s advantages work out to be the disadvantages of
the latter.
 Advantages of External Consultants
The advantages of the external team are:
1. The external team can draw on a wealth of experience from having worked with different types of
organizations that have had the same or similar types of problems. This wide range of experience would
enable them to think both divergently and convergently rather than hurry to an instant solution on the basis
of the apparent facts in the situation. They would be able to ponder over several alternative ways of
looking at the problem because of their extensive problem-solving experiences in various other
organizational setups. Having viewed the situation from several possible angles and perspectives (diver-
gently), they could critically assess each of these, discard the less viable options and alternatives, and
focus on specific feasible solutions (think convergently).
2. The external teams, especially those from established research and consulting firms, 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. Because knowledge obsolescence is a real
threat in the consulting area, external research institutions ensure that their members are current on the
latest innovations through periodic organized training programs. The extent to which internal team
members are kept abreast of the latest problem-solving techniques may vary considerably from one
organization to another.
 Disadvantages of External Consultants

The major disadvantages in hiring an external research team are as follows:

1. The cost of hiring an external research team is usually high and is the main deterrent, unless the problems are
very critical.

2.In addition to the considerable time the external team takes to understand the organization to be researched,
they seldom get a warm welcome, nor are readily accepted by employees. Departments and individuals likely
to be affected by the research study may perceive the study team as a threat and resist them. Therefore,
soliciting employees‘ help and enlisting their cooperation in the study is a little more difficult and time-
consuming for the external researchers than for the internal teams.

3. The external team also charges additional fees for their assistance in the implementation and evaluation
phases
KNOWLEDGE ABOUT RESEARCH AND MANAGERIAL
EFFECTIVENESS

As the manager, you will be the one to make the final decision on the implementation of
the recommendations made by the research team. Remaining objective, focusing on
problem solutions, fully understanding the recommendations made, and why and how
they are arrived at, make for good managerial decision making. Although company
traditions are to be respected, there may be occasions where today‘s rapidly changing
turbulent environment would demand the substitution or re-adaptation of some of these
traditions, based on research findings. Thus, knowledge of research greatly enhances
the decision-making skills of the manager.
 ETHICS AND BUSINESS RESEARCH

• Ethics in business research refers to a code of conduct or expected societal norm of behavior while
conducting research. Ethical conduct applies to the organization and the members that sponsor the
research, the researchers who undertake the research, and the respondents who provide them with
the necessary data.
• The observance of ethics 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.
• Ethical conduct should also be reflected in the behavior of the researchers who conduct the
investigation, 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
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