Business Research Lec1 97

8/2/2019 Business Research Lec1 97

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Business Research

(Lecture 1)Muhammad Fahid Saleem


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Search for truth

People have long been concerned to come to grips withtheir environment and to understand the nature of

phenomenon it presents to their senses.

Examine their day to day professional work

To Understand & formulate guiding principles that

govern particular procedure.Its habit of questioning


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Search for truth

Questions related to health sector can beHow many patientsCommon conditionsCauses of common conditions

Health needs of communityPatients satisfaction

Similarly in a business sectorBest strategy to promote product

How much sales staff requiredEffect of advertisement campaign on salesCustomer satisfaction


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Search for truth

The means by which people try to answer thesequestions, may be classified into three broad categories:

experience, reasoning and research .

These categories are neither independent nor mutually

exclusive and are seen as complementary and

overlapping features where solutions to modern problems

are sought.


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Experience

Knowledge and understanding gained eitherindividually or as a group or society or shared byexperts or leaders, through day to day living.In our endeavors to come to terms with the

problems of day-to-day living, we are heavilydependent upon experience .The limitations of personal experience in theform of common-sense knowing , can however,be quickly exposed when compared withfeatures of the scientific approach to problem-solving.


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Experience

Laypersons mostly base their experiences on haphazardmanner, either selective or unable to used all the

evidence to test their assumptions.

Laypersons also generally make no attempt to control anyextraneous sources of influence when trying to explain an

occurrence.

Chance occurrence of two events in close proximity issufficient reason to predict a causal link between them.


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Reasoning

Reasoning is a method of coming to conclusions bythe use of logical argument.

This is the second category by means of which

people attempt to comprehend the world around

them, namely, reasoning , consists of three

types: deductive reasoning , inductive

reasoning , and the combined inductive-

deductive approach.


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Deductive Reasoning

Movement from general inferences to specific instances isbased on the syllogism which was Aristotles

(a Greek philosopher) great contribution to formal

logic.In its simplest form the syllogism consists of a majorpremise based on a priori [ a priori is a Latin term

which literally means before (the fact)] or self-evidentproposition, a minor premise providing a particularinstance, and a conclusion.


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Deductive Reasoning Thus:

All planets orbit the sun;The earth is a planet;Therefore , the earth orbits the sun.

Similarly:All high performers are highly proficient in their jobsBilal is a high performerTherefore , He is highly proficient in job


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Inductive Reasoning

Francis Bacon proposed the inductive reasoning movement from specific instance to general inferences by means of

which the study of a number of individual cases

would lead to a hypothesis and eventually to ageneralization.

We see that production processes are the prime features of

factories & manufacturing plants.Therefore , We conclude that factories exist for production

purposes.


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Bacons inductive method was eventually followed by theinductive-deductive approach which combines inductionand deduction.A back-and-forth movement in which the investigationfirst operates inductively from observations to hypothesis ,

and then deductively from these hypothesis to theirimplications , in order to check their validity from thestandpoint of compatibility with accepted knowledge.After revision, where necessary, these hypotheses aresubmitted to further test through the collection of data

specifically designed to test their validity at the empiricallevel.This dual approach is the essence of the modernscientific method for empirical research.


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Research?


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Wrong uses of the term Research

1. As a mere gathering of facts or information

2. Moving facts from one situation to another

3. As an esoteric activity, far removed from practical life

(Lab, Burner, Chemicals, test tubes or an Einstein like

character writing dissertation on some complex subject)


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Different Definitions of Research

Burn (1994) a systematic investigation to find answersto a problem .

Oxford Encyclopedic Dictionary defines The systematicinvestigation into the study of materials , sources etc. in

order to establish facts and reach new conclusions Sociological research is primarily committed to establishsystematic reliable & valid knowledge about social world (Bulmer 1977).

Business research is the systematic & objective processof gathering, recording & analyzing data for aid in makingbusiness decisions .(William)


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Criteria

Adherence to the criteria mentioned below enablesthe process to be called Research

Process is being undertaken within a framework of a

set of philosophies

Process uses procedures, methods and techniques

that have been tested for their validity and reliabilityProcess is designed to be unbiased and objective


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Criteria (Cont.)Philosophies(Positivist, Constructivist, Realist etc)Validity & Reliability

Validity, Correct procedures have been applied to find answersto a question.Reliability, Quality of a measurement procedure that providesrepeatability and accuracy.

Unbiased & ObjectiveEach step is unbiased, conclusion based on best of knowledgewithout your own vested interest.Distinction between biasness and subjectivity does exist

Subjectivity is an integral part of your thinking process, basedon your education, discipline, experience and skill.Where as a deliberate attempt to either conceal or highlight something is biasness .


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Characteristics of Research

1. Controlled & Systematic :Many factors effect an outcome in real world.An event might be the result of a one to one relationship,OR even more.

In cause & effect relationship it is important to link causewith effect.In practice, specially in social science it is extremelydifficultControl refers to minimize other factors that can effect thatrelationCan be achieved in Physical Science, as most ofresearch is done in laboratory


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Characteristics of Research (Cont.)When we talk about is reasoning it is divorced from realityhowever research is empirical and turns to experience and thereal world around for validation.Simply, subjective belief must be tested against objectivereality.

3. Self Correcting:

Not only does scientific method have built-in mechanisms toprotect scientists from error as far as humanly possible.But also their procedures and results are open to publicscrutiny by fellow professionals.

Research is therefore, a combination of bothexperience and reasoning and is regarded as themost successful approach to the discovery of truth,particularly as far as the natural sciences areconcerned .


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Types of Research

Research can be classified from three perspectives,1. Application of the research study2. Objectives of the study3. Inquiry Mode employed

These three classification are not mutually exclusive.A research classified from the view point ofapplication can also be classified from theperspective of objective and inquiry modeemployed.


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Types of ResearchApplication:If you examine research endeavour from the perspective of itsapplication, there are two broad categories

Pure Developing and testing theories and hypothesis that areintellectually challenging to researcher but may or maynot have practical application at the present time or in thefuture.For example, developing a sampling technique that canbe applied to a particular situationSimilarly, Developing an instrument, say, to measure thestress level in people


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Types of Research (Cont.)

AppliedMost of the researches in social science are applied.

Simply techniques, procedures and methods that form the

body of research methodology are applied to thecollection of information about various aspects of a

situation, issue, problem or phenomenon.

So that information gathered can be used in other ways

such as policy formulation, administration and the

enhancement of understanding of a phenomenon.


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Types of Research (Cont.)ObjectivesSimilarly segregation of research on the basis of itsobjective can be categorized in four types

DescriptiveTo describe what is prevalent regarding a group ofpeople, community, phenomenon, situation, program, oroutcome.Main theme, What is prevalent.For example, Attitudes of students towards quality of

teachingAttitude of workers towards managementProblems faced by immigrantsConsumers likes and dislikes with regard to a product


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Types of Research (Cont.)Correlational ResearchThis type of research is conducted to discover orestablish existence of relationship/association/ interdependence between two or more aspects of asituation.

Main theme of the research conducted is to ascertain ifthere is a relationship.For example, Impact of technology on employmentImpact of advertising campaign on sale of a product

Impact of incentives on productivity of workersRelationship between stressful living and incidence ofheart attack


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Explanatory ResearchThis type of research attempts to clarify why and how

there is a relationship between two aspects of a situation

or phenomenon.

Main theme is to explain why and how the relationship is

formed.

For Example, Why does stressful living results in heart

attack.

How does technology creates employment/unemployment


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ExploratoryTo explore an area where little is known or to investigate

the possibilities of undertaking a particular research study.

When a study is carried out to determine its feasibility it isalso called a feasibility study or a pilot study.

A small scale study is undertaken to decide if it is worth

carrying out a detailed investigation.

Exploratory studies are also conducted to develop, refine,

and/or test measurement tools and procedures.


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Types of Research (Cont.)Qualitative:Unstructured and flexibility in processAppropriate to explore the nature of problem, issue,situation etc.Example, an account of the different opinions people have

about an issueA description of the living conditions of a communityDistinction between quantitative and qualitative research,in addition to the structured/unstructured process ofinquiry, is also dependent upon some otherconsiderations such as, Approach of inquiry, purpose ofinvestigation, measurement variables, sample size,analysis of data etc.


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Types of Research (Cont.)What to follow Qualitative or Quantitative:Though some disciplines such as history and sociologyare more inclined towards qualitative however quite a fewincluding economics, marketing, finance are inclinedtowards quantitative.

Therefore it is recommended one should not lock itselfinto becoming either solely quantitative or qualitativeresearcher.Both qualitative and quantitative have their strengths andweaknesses, therefore now you can find many studies

where you use combination of bothFor example, Suppose you want to find out the types ofservices available to victims of domestic violence in a city and the extent of their utilization.


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Types of Research (Cont.)First part of the research regarding the types of servicesis the qualitative aspect of study as finding out about themrequires the description of services.The extent of utilization of services is the quantitativeaspect of study as it involves estimating the number of

people who use these services and other indicators thatreflect the extent of utilization.


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What to consider while conducting aBusiness Research1. Time Constraint

Systematic research takes timeWhat if immediate decision is requiredThen no research can be conducted although rapid decision making is notideal.

2. Availability of DataOften managers do have enough information to make sound decisionsIf there is lack of information then consider conducting a researchHowever, if there are data constraints, then research can not beconducted.

3. Nature of DecisionRoutine decision does not require research.For example, if you want to update user manual for a customer, incurringcost for determination of proper wording not required.

4. Benefits versus costsWill the information gained by business research improve the qualitydecision to cover the expenditure.Proposed research expenditure is the best use of available funds.


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Applications of ResearchMost of the research conducted is applied research,which has wide application in many disciplines.Every profession uses research methods in varyingamounts in many areas.

Methods and procedures developed by researchmethodologists are used by different professionals toincrease the understanding and knowledge base oftheir respective discipline.

Questions raised in professions can categorized infour different perspectives


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Applications of Research (Cont.)From different Perspectives1. The service provider

How many people are using this service/productWhy some are using and others do notHow can service or product can be improved

2. The administrator, manager etc.What are the needs of the communityWhat type of products/services are neededHow many service providers neededWhat are the training needs of staff

3. The consumerAm I getting value of my moneyHow good is quality of service /product

4. The professionalWhat is relationship between X & YHow valid is particular theory in present conditionsWhat is the best way of measuring attitudes.


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Managers and ResearchYou yourself may not be doing research, you as managercan hire a research firmThen why you need to study research1. Identify and effectively solve minor problems in the work

settings. Since it enables you to understand, predict, and dealwith the problems before they get out of hand.

2. Know how to discriminate good from bad research.3. You will be aware of multiple influences and effects of

different factors on some specific situation.4. Take calculated risk , having know the probabilities attached to

success or failure of project.5. Prevent possible vested interest from exercising their

influence in a situation.6. Can interact effectively with hired researcher.7. Combine experience with scientific knowledge while making

decisions.


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Common areas in Business ResearchAccounting

Inventory methodsDepreciation methodsBehavior of quarterly earningsTaxation methods

FinanceOptimum financial ratios

Mergers and acquisitionsBehavior of stock exchangeManagement

Employee attitude and behaviorImpact of changing demographics on management practicesProduction operation management

MarketingProduct imageDistributionPackingConsumer prefrences

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Business Research Lec1 97