2. Business research is defined as the
systematic and objective process of
generating information for aid in
making business decisions.
Business Research Defined
3. Business Research Defined
• Research is defined as organized, systematic, data
based, critical, scientific inquiry into a specific
problem that needs solution.
• Research provides the information that enables
managers to make decisions to rectify problems
• Research Methods:
Refer to the ways in which research studies are
designed and procedures are established by which
data are analyzed.
4. Business Research
• Research information is neither intuitive nor
haphazardly gathered.
• Literally, research (re-search) -“search
again”
• Business research must be objective
• Detached and impersonal rather than biased
• It facilitates the managerial decision process
for all aspects of a business.
8. Basic Research
• Attempts to expand the limits of knowledge.
• Not directly involved in the solution to a
pragmatic problem.
• When research is being done chiefly to improve
our understanding of certain problems that
commonly occur in organizational settings and
how to solve them. R & D department and
university professors do this. Purpose is to
improve / generate more knowledge.
9. Basic Research Example
• Is executive success correlated with high
need for achievement?
• Are members of highly cohesive work
groups more satisfied than members of less
cohesive work groups?
• Do consumers experience cognitive
dissonance in low-involvement situations?
10. "The secret of success is to know something
nobody else knows. "
Aristotle
11. Applied Research
• Conducted when a decision must be made about
a specific real-life problem
• To Solve currently existing problem in the work
setting. Research is done with the intentions of
applying the results of its findings to solve
specific problem currently faced by
organization. Most organizations do this
research. Usually used for decision-making.
12. Applied Research Examples
• Our employee turnover has increased
significantly. We don’t know why?
• Business research told us that poor working
conditions are responsible,
• Should we promote females to managerial
positions?
• Research showed women are equally
competent to be managers.
13. MANAGERS & RESEARCH
It helps manager to:
• Identify and efficiently solve minor problems.
• Know how to discriminate good from bad research
• Be aware of multiple influences and effects in a particular
solution.
• Take calculated risks
• Prevent possible vested interests from exercising the
influence in situation
• Relate to hired researchers and consultants more
effectively.
• Combine experience with scientific knowledge while
making decisions
14. MANAGER RESEARCHER
RELATIONSHIP
• Manager should make sure while hiring
researchers or consultants that :-
• Roles and expectations of both parties are
clear
• Org. Values, philosophy and constraints
are stated.
• Good relations are buildup among
researchers, management and employees.
15. HOW TO LOCATE AND
SELECT A RESEARCHER
– Many research firms are available who provide
their services.
– Business Colleges
– Internet
– Yellow Pages
– Magazines
– Business segments of news papers
16. Internal / External Researchers
• Internal Researchers: Some large
organizations (like Lever Brothers, ICI & P
&G) have set up their own Research and
development departments, where their own
researchers work. They conduct applied and
pure research in their organization. Medium
sized organizations might not have big
R & D departments.
17. Internal / External Researchers
Advantages
• Easy acceptability by the employees while conducting a
research.
• Less time is required to understand the culture an structure.
• Availability to check the implemented recommendations
• Cost-effective
Disadvantages
• They might be stereotyped having no fresh ideas.
• Vested interests can contaminate the results
• They are not perceived as experts by their own people
18. Internal / External Researchers
• External Researchers: well established research firms are available
now a days to conduct research. These firms have experiences and
qualified specialist researchers to conduct research. Companies go for
outside researchers if either they don’t have their own research
department or they think outside researcher will better address the
problem.
• Advantages
• They have plenty of experience of working with different type of
organizations.
• They are well conversant with sophisticated research tools and
knowledge.
• Their research will be unbiased
• Disadvantages
• Take more time
• Not aware of company norms and culture
• Costly
• Face difficulty in acceptance from employees
19. SCIENTIFIC RESEARCH
• Scientific research is focused on goal
solving and pursues a step-by-step logical,
organized and rigorous method to identify
problems, gather data, analyze them, and
draw valid results. Scientific thinking is not
based on experience emotions and
intuition only.
• Scientific Research applies on both applied
and basic research.
20. Determining When to Conduct
Business Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
21. Is sufficient time
available before
a managerial
decision
must be made?
Is the infor-
mation already
on hand
inadequate
for making
the decision?
Is the decision
of considerable
strategic
or tactical
importance?
Does the value
of the research
information
exceed the cost
of conducting
research?
Conducting
Business
Research
Do Not Conduct Business Research
Time Constraints
Availability of
Data Nature of the Decision
Benefits
vs. Costs
Yes YesYesYes
No No No No
Determining When to Conduct
Business Research
22. Value versus Costs
• Potential Value of a Business Research
Effort Should Exceed Its Estimated Costs
23. Value
•Decreased
uncertainty
•Increased likelihood
of a correct decision
•Improved business
performance and
resulting higher
profits
Costs
•Research
expenditures
•Delay of business
decision and
possible disclosure
of information to
rivals
•Possible erroneous
research results
Value Should Exceed
Estimated Costs
