Chapter II

FORMULATION OF BUSINESS
RESEARCH PROBLEMS AND HYPOTHESES

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 Learning Objectives
At the end of this chapter students will be able
• To understand and define a social or development
problem
• To understand the significance or importance of
research problems
• To understand the major steps to be followed in
formulating research problems in social science,
including business
• To distinguish a problem from its symptoms
• To identify the conditions for effective formulation of
research problems in social science
• To translate research problems into research
objectives
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 2.1 Formulation of Research Problems
2.1.1. Concept of problem and significance of
problem definition
 A problem is a gap between what actually exists
and what should have existed
 The significance of a problem can be measured by
the gap
 The best social research starts from problems,
which are also puzzles.
 A puzzle is not just a lack of information, but a gap
in our understanding.
 Descriptive research simply answers the question:
“What, when, where, how, etc something is going
on in?”
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 puzzle solving research tries to contribute to our
understanding of why events happen as they do
rather than simply accepting them at their face
value.

 Choice of research topic is affected by many things:

interests and values of the researcher
current events in the academic world and
the context in which the research is to be made.

 Research may start with the discovery of an

opportunity or a problem that should come before
problem definition.

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 Significance of research problem
 At the out set of the research process, the researcher
may not have a clear statement of the problem.

 The formulation of a problem is often more

important than its solution (Albert Einstein) because
the subsequent research process and the solution
are completely dependent on the problem.

 A problem well defined is a problem half solved

(Dewy).

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 Significance ….

It allows the researcher to set the proper

research objectives, and efficiently use
resources.
Problem definition is the indication of a
specific business or managerial decision area
that would be classified by answering some
research questions.
A problem definition error or omission is likely
to be a costly mistake that cannot be
corrected in latter stages of the process.
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THE PROCESS OF PROBLEM DEFINITION
 A problem definition indicates a specific managerial
decision area that will be clarified by answering some
research questions.
 Problem definition involves the following interrelated
steps.
 Ascertain the decision maker's objectives.
(problem discovery or identification)
Understand the background of the problem.
identify the problem and Isolate it from its
symptoms.
Determine the unit of analysis.
Determine the relevant variables.
State the research questions (hypotheses) and
research objectives.

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1. Ascertain the Decision Maker's Objective
 Objectives are seldom clearly articulated and given to the
researcher. OR
(HAVE A DEEP FEEL OF THE PROBLEM AND INTERNALIZE IT)

 The decision maker seldom formulates his objectives

accurately.

 S/he is likely to state his objectives in the form of

platitudes which have no operational significance.

 Objectives usually have to be extracted by the researcher.

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 continued
One effective technique for uncovering elusive
research objectives consists of presenting the
manager with each possible solution to a problem
and asking whether s/he would follow that course
of action. If the decision maker says "no," further
questioning to determine why the course of
action is inappropriate usually will help formulate
objectives.

Often exploratory research can illuminate the

nature of the opportunity or problem and help
deciosion makers clarify their objectives and
decisions.

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2.Understanding the Background of the
Problem
 The iceberg principle illustrates that understanding
the background of a problem is vital.

 In situations in which the decision maker's objectives

are clear, the problem may be diagnosed exclusively
by exercising managerial judgment.

 In the absence of adequate information about a

problem a situation analysis is the logical first step in
defining the problem.

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 Understanding the Background of the Problem

A situation analysis involves a preliminary

investigation or informal gathering of
background informa­tion to familiarize
researchers or decision makers with the
decision area

Gaining an awareness of organizational or

environmental conditions and an appreciation
of the situation often requires exploratory
research.

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3. Identifying and Isolating the Problem from its Symptoms
 Anticipating all of the dimensions of a problem is
impossible for any researcher or executive.

 Occurrences that appear to be "the problem" may be

only symptoms of a deeper problem.

 Isolation of a core problem from its symptoms can be

carried out by listing all the likely problems and
conducting cause and effect relationship of the
identified problems through paired comparison.

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 Identifying and Isolating the Problem from its Symptoms

This helps to eliminate the symptoms from

the list

The symptoms cause confu­sion about the

nature of the true problem.

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4. Determine the unit of analysis
 Unit of analysis the level or unit about which conclusions
are made in research

 The investigation may focus on the collection of data about

organizations, departments, work groups, individuals or
objects.

 A problem may be investigated at more than one levels of

analysis and the conclusions may vary.

 Determining the unit of analysis should not be overlooked

during the problem definition stage of the research.

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 5. Determine the Relevant Variables

 A variable is defined as anything that varies or changes

in value.

 A variable generally is anything that may assume

different numerical or categorical values.

 Key independent and the dependent variables should

be identified in the problem definition stage.

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 Determine the Relevant Variables
A dependent variable is a criterion or a
variable that is to be predicted or explained.

An independent variable is a variable that is

expected to influence the dependent variable.

For example, average hourly rate of pay may

be a dependent variable that is influenced or
can be predicted by an independent variable
such as number of years of experience.

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 ….Determine the Relevant Variables

 There are also intermediary variables that always lie

between the independent variables and the
dependent variable.

 Intermediary variables are outcomes of the

independent variable and causes of the dependent
variable

 The assignment of variables to independent,

intermediary, and dependent variables vary from one
situation to another.

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 6. State research questions and objectives
 After problem definition researchers should prepare
a written statement that clarifies any ambiguity about
what they hope the research will accomplish.
 Research questions and hypothesis can add clarity to
the statement of the development problem.
 Research questions makes it easier to understand
what is perplexing to decision makers and indicate
the issues to be resolved.
 A research question is the researcher’s translation of
the development problem into a specific need for
inquiry.

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 research questions and objectives
 The goal of defining the problem is to state the
research questions clearly and to have well
formulated hypothesis.

 Research Objective is the researcher's version of the

development problem – specifies what is to be done
by the researcher

 These objectives explain the purpose of the research

in measurable terms-and define standards of what
the research should accomplish.

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 …..research questions and objectives

Objectives help to ensure that the project will

be manageable in size.

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 continued
 Research objectives must specify the information
needed to make a decision.
 Identifying the information needed may require
decision makers or researchers to be as specific as
listing the exact wording of the question in a survey or
explaining exactly what behavior might be observed or
recorded in an experiment.
 Many career decisions, for example, are made by both
a husband and wife. If this is the case, the husband-
wife decision-making unit (or household) is the unit of
analysis.
 It is useful if the research objective is a managerial
action standard. If the criterion to be measured

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 continued

 The number of research objectives should be limited

to a manageable quantity.

 The fewer the study objectives, the easier it is to

ensure that each will be addressed fully.

 Therefore specific objectives influence the research

design because they indicate the type of information
needed.

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 Activity 2.1
• Identify ten major problems in your
organization
• From these ten problems select the most
significant three problems by following the
procedures to be followed in problem
definition and recognize that one of theses
problems will be your research topic for the
research proposal that you are going to
develop by the end of chapter three.

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 CONDITIONS FOR EFFECTIVE FORMULATION OF RESEARCH
PROBLEMS

1. Systematic immersion in the subject through first

hand observation (information)

2. Study of relevant literature on the subject

3. Discussions with persons with practical experience

in the field of study: experience
survey

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2.2 Theoretical/Conceptual Framework and Hypotheses
Development

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 Hypothesis Formulation

Hypotheses are a set of proposed solutions or

explanations, which the researcher is obliged
to test on the bases of already known facts.

A researcher should collect facts as are for or

against some point of view or proposition.

Simply stated, a hypothesis helps the

researcher to see and appreciate:

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 Formulation of Research Hypotheses
The kind of data that need to be collected in
order to answer the research question

The way in which they should be organized

and classified most efficiently and
meaningfully.

A hypothesis provides basic guide/direction/

frame work to the researcher. It is a tentative
solution/proposition/explanation.

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 Continued Research Hypotheses

 Research hypothesis may refer to an unproven

proposition or supposition that tentatively explains
certain facts; phenomena; a proposition that is
empirically testable.

 Research hypotheses are statements that can be

empirically tested.

 Hypothesis are usually more specific than problem

statements; they are usually nearer to the actual research
operations and testing.

 the definition of what the research should accomplish.

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 Research Hypotheses

In social science hypothesis formulation may

be replaced by research questions and
objectives.

Research question is the researcher’s

translation of the problem into specific need
for inquiry.

Research objective is the purpose of the

research in measurable term
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 Sources of Hypothesis
1. Hypothesis originates in the science itself or in the
scientist
 Personal and idiosyncratic experiences, perception and
conception of the researcher play a major role.
 Researchers should think differently and carefully.

2. Analogies are comparisons or analogies between systems

(such as social and natural systems)

3. Hypothesis may rest also on the findings of other studies

 In social science research is usually exploratory i.e. an
extension from other researches or clear hypothesis

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 continued

4. A hypothesis may stem from a body of theory,

which may afford by way of logical deduction, the
prediction that if certain conditions are present
certain results would follow.

5. Value orientation of the culture in which a science

develops may furnish many of its basic hypotheses.

 To conclude the ideal source of fruitful and relevant

hypothesis is a fusion of past experience and
imagination of the researcher.

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 Activity 2.2.

• Referring to the ten practical research

problems you have identified in activity 2.1,
identify at least two hypotheses for each
question.
• In the process of research you may prove or
disprove a hypothesis. Do you think that
proving and disproving a hypothesis is equally
important as a researcher? Why or why not?

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 Characteristics of a Useable Hypothesis
 Empirically testable
 Conceptually clear
 Closest to things observable
 Specific
 Related to a body of a theory or some theoretical
orientation - the function of research may be
elaborating, extending and improving a theory.
 Related to the available techniques

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 Activity 2.3

• For the three most important problems

identified in Activity 2.1, formulate one
hypothesis
• (you can select from your answers for Activity
2.2) for each question, and
• Test three of them whether they qualify a
good hypothesis or not. Make sure that one
of these hypotheses will included in the
research proposal that you are going to
prepare at the end of chapter three.
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 End
thank you
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