Business Research Methods

Lecture-1
Jam Javed Iqbal
 What is Research

In simple words Re-search mean “Search Again”

Or
It is a process of gathering information to answer a
question
Or
The Scientific Investigation of any problem is called
Research
 What is Business Research

“Business Research is a systematic and objective process of

gathering, recording and analyzing data for making good
business decisions”
 Examples of Business Research

 What is the best strategy to promote a particular product? (Marketing)

What is the main reasons for employee turnover? (HRM)

 What is the rate of return on particular investment? (finance)

 WHY WE SHOULD STUDY RESEARCH METHOD?
The best reason for learning about research methods is that these methods are
used by the Managers to answer the questions regarding day to day business
problems. Following are some other implications of the research:

1- Management Is A Science: Management is a science to gather and

interpret information in order to make effective decisions.

2- Reduce Uncertainty: The prime managerial value of business research

is that it reduces uncertainty by providing required information and
improves the following four stages of decision making:

 Identifying problems and opportunity.

 Diagnosing and assessing problems or opportunities.
 Selecting and implementing a course of action.
 Evaluating the course of action.

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3- Conducting A Study: Research method course is very useful for you as you
have to do your master’s thesis in order to complete your degree
requirement and it is also helpful to you at some time in future because
being a professional everyone wants to read and understand the most
recent research in order to be up date in his profession.

4- Reading And Evaluating Other People’s Study: A grasp of research

terminology will allow you to read and understand
research articles and critically evaluate it. Rather than reading a summary
of someone else’s research in a magazine, news paper, or textbook, you can
read the original article your self and draw your own conclusion.

5- Understanding Brief Description Of Studies: A research method course will

help you understanding abbreviated description of studies given as
evidence supporting some conclusion or theory.
6- Thesis is based on Research : besides all the business related benefits of the
research studies, it is also useful for your academic requirement of thesis
as being compulsory for your degree

7- Making Decisions In Our Daily Lives: Besides becoming a researcher, to be

an effective, participating member of 21st century one must understanding
the research process in order to evaluate and act on research results.

8- Being A Better Thinker: The research methodology will also improve your
thinking as it is a logical and objective method of finding answer to a
question which may apply to all aspects of life.

9- Secret Of Success: “The secret of success is to know something no body else

knows” .

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 Business Research
• Steps of business research:
• To know where the problem areas exist in the organization.
• To identify as clearly and specifically as possible the problems that need to
be studied and resolved.
• Gather information, analyze the data, and determine the factors that are
associated with the problem and solve it by taking the necessary corrective
measures.

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 Research and the Manager

• The managers encounter big and small problems on a daily basis, which
they have to solve by making the right decisions.
• In business, research is usually conducted to resolve problematic issues in
the areas of accounting, finance, management, and marketing.

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 Research and the Manager

Problems in Accounting:
• Budget control systems
• Inventory costing methods
• Depreciation
• Time-series behavior of quarterly earnings
• Transfer pricing
• Taxation methods

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 Research and the Manager

Problems in Finance:
• The operations of financial institutions
• Optimum financial ratios
• Mergers and acquisitions
• Leveraged buyouts
• Interoperate financing
• Yields on mortgages
• The behavior of the stock exchange

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 Research and the Manager

Problems in Management:
• Employee attitudes and behaviors
• Human resources management
• The impact of changing demographics on management practices
• Production operations management
• Strategy formulation
• Information systems

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 Research and the Manager

Problems in Marketing:
• Product image
• Advertising
• Sales promotion
• Product distribution
• Product packaging
• Product pricing
• After-sales service
• Consumer preferences
• New product development

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 Classification of
Research

Application
Data collection
Or Objective Time Dimension
Techniques
Uses of Research

Cross-
Basic or Pure Exploratory Qualitative
sectional
Research research research
research

Applied Explanatory Longitudinal Quantitative

Research research research research

Mixed
Descriptive
Methods
research
research
 Application
Or
Uses of Research

1-Basic or Pure Research

2-Applied Research

1-Basic or Pure Research:

To generate a body of knowledge about how to solve problems that
could be occurred in organizations. This is called basic research or
fundamental research. It is also known as pure research

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 Examples of Basic Research
• University professors engage in basic research in an effort to
understand and generate more knowledge about various
aspects of businesses, such as:
- How to improve the effectiveness of information systems.
- How to integrate technology into the overall strategic
objectives of an organization.
- How to increase the productivity of the employees.
- How to increase the effectiveness of small businesses.

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 Examples of Basic Research
• These findings later become useful for
application in business situations.

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 Application
Or
Uses of Research

2-Applied Research

To solve a current problem faced by the manager in the work setting.

Such research is called applied research.

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 Examples of Applied Research
• Apple’s iPod sales increased by 200% from 2001 to
2008. but the sales decreased by 6% in 2009. What is
the reason for this decrease?
• The question is: what will apple do about this
problem?

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 Distinction Between Applied and Basic
Research

• The main distinction between applied and basic business

research is:
• Applied research is specifically aimed at solving a currently
experienced problem.
• Basic research has a broader objective of generating
knowledge and understanding of phenomena and problems
that occur in various organizational settings.
• Both types of research follow the same steps of systematic
inquiry to arrive at solutions to problems.

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 2.Purpose of Doing Research
a. Exploratory/ Formulative Research
b. Descriptive Research
c. Explanatory Research
a.Exploratory/ Formulative Research
If the issue was new or the researcher has written little
on it, you begin at the beginning. This is called
exploratory research.
EXAMPLE
An example in the business environment might be an
exploratory study of a new management technique in
order to brief a management team. This would be a vital
first step before deciding whether to embrace the
technique.
b. Descriptive Research
Descriptive research is used to describe
characteristics of a population or phenomenon being
studied.
EXAMPLE
A detailed set of data on the profile of clients would be
an example of this type of report. By understanding the
customer better, sales and marketing management will
be able to take better decisions on new product
development.
C. Explanatory Research
• When we encounter an issue that is already
known and have a description of it, we might
begin to wonder why things are the way they are.
The desire to know “why”, to explain, is the
purpose of explanatory research.
• For example, a descriptive research may discover
that 10 percent of the parents abuse their children,
whereas the explanatory researcher is more
interested in learning why parents abuse their
children
3. The Time Dimension in Research
a. Cross-Sectional Research.
b. Longitudinal Research.
a. Cross-Sectional Research.
One-shot or cross-sectional studies are those in
which data is gathered once, during a period of
days, weeks or months. Cross-sectional research
is usually the simplest and least costly alternative
b. Longitudinal Research.

Longitudinal Research. Researchers using longitudinal

research examine features of people or other units at
more than one time. It is usually more complex and
costly than cross-sectional research but it is also more
powerful
 4. Research (data collection)
Techniques Used
a. Quantitative
b. Qualitative
a. Quantitative
Collecting data in the form of numbers.
The main quantitative techniques are:
1. Experiments
2. Surveys
3. Content Analysis
4. Using Existing Statistics
b. Qualitative
collecting data in the form of words or pictures.
The major qualitative techniques of research are:
1. Field Research
2. Case Study
3. Focus Group Discussion
 Managers and Research
• The manager who is knowledgeable about research
can interact effectively with the researchers.
• Knowledge about research process also helps
managers to become discriminating recipients of the
research findings presented, and to determine
whether or not the recommended solutions are
appropriate for implementation.

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 Managers and Research
• When managers understand the research
reports about their organizations handed to
them by professionals, they will be equipped
to take intelligent, educated, calculated risks
with known probabilities attached to the
success or failure of their decisions.
• Research then becomes a useful decision-
making tool.

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 Internal Versus External
Consultants/Researchers
• Internal Consultants or Researchers:
Some organizations have their own research
department, which might be called:
- The management services department
- The organization and methods department
- R & D (research and development department)

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 Internal Versus External
Consultants/Researchers
• Such a department within the organization
serves as the internal consultant if it face
certain problems and seek help.
• This unit would be useful in several ways

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 Advantages of Internal Researchers
• The internal researchers have better chance of
being readily accepted by the employees.
• The team would require much less time to
understand the structure, the philosophy and
climate and work system of the organization.

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 Advantages of Internal Researchers
• They would be available for implementing
their recommendations after the research
findings are accepted.
• The internal team might cost considerable less
than the external team.

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Disadvantages of Internal Researchers
• They might have less fresh ideas and
perspectives that might be needed to correct
the problems.
• There is scope for certain powerful groups in
the organization to influence or misrepresent
certain facts.

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Disadvantages of Internal Researchers
• There is a possibility that the internal
researchers are not perceived as “experts” by
the management, and hence their
recommendations do not get the
consideration and attention they deserve.
• Certain organizational biases of the internal
research team might make the findings less
objective and less scientific.

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 Advantages of External Consultants
• They have a wealth of experience from having
worked with different types of organizations
that have had the same or similar types of
problems.
• They might have more knowledge of current
sophisticated problem-solving models through
their periodic training programs.

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Disadvantages of External Consultants
• The cost of hiring an external research team is
usually high.
• They need a considerable time to understand the
organization to be researched.
• They seldom get a warm welcome, nor are accepted
by employees.
• They charges additional fees for their assistance in
the implementation and evaluation phases.

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 Ethics and Business Research
• Ethics in business research refers to a code of
conduct 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.

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 Ethics and Business Research

• The members that sponsor the research should do it in good

faith, pay attention to what the results indicate, and pursue
organizational rather than self-interest.
• 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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