Meaning of Research
v Search for knowledge
v Art of scientific investigation.
v Walking from known things to unknown.
v Systematic process of discovery.
v It if effort to discover answer to problems through application of scientific method.
The search for knowledge through objective and systematic
method of finding solution to a problem/answer to a question is research. There
is no guarantee that the researcher will always come out with a solution or
answer. Even then, to put it in Karl Pearson’s words “there is no short cut to
truth… no way to gain knowledge of the universe except through the gate way of
scientific method”.
Research refers to a process of enunciating the problem formulating a hypothesis collecting the facts or data analyzing the same, and reaching certain conclusions either in the form of solution to the problem enunciated or in certain generalizations for some theoretical formulation.
D. Slesinger and M. Stephenson in the Encyclopaedia of
Social Sciences defined research as: “Manipulation of things, concepts or
symbols for the purpose of generalizing and to extend, correct or verify
knowledge, whether that knowledge aids in the construction of a theory or in
the practice of an art”.
To understand the term ‘research’ clearly and
comprehensively let us analyse the above definition.
I.
Research is manipulation
of things, concepts or symbols
•
manipulation means purposeful
handling,
•
things mean objects like balls,
rats, vaccine,
•
concepts mean the terms
designating the things and their perceptions about which science tries to make
sense. Examples: velocity, acceleration, wealth, income.
•
Symbols may be signs indicating +, –, ÷, ×, x, , , etc.
•
Manipulation of a ball or
vaccine means when the ball is kept on different degrees of incline how and at
what speed does it move? When the vaccine is used, not used, used with
different gaps, used in different quantities (doses) what are the effects?
II.
Manipulation is for the
purpose of generalizing: The purpose of research is
to arrive at generalization i.e., to arrive at statements of generality, so
that prediction becomes easy. Generalization or conclusion of an enquiry tells
us to expect something in a class of things under a class of conditions. Examples:
When price increases demand falls. Advertisement has a favourable impact on
sales.
III.
The purpose of research
(or generalization) is to extend, correct or verify knowledge: Generalization has in turn certain effects on the established corpus
or body of knowledge. It may extend or enlarge the boundaries of existing
knowledge by removing inconsistencies if any. It may correct the existing knowledge
by pointing out errors if any. It may invalidate or discard the existing
knowledge which is also no small achievement. It may verify and confirm the
existing knowledge which also gives added strength to the existing knowledge.
It may also point out the gaps in the existing corpus of knowledge requiring
attempts to bridge these gaps.
IV.
This knowledge may be
used for construction of a theory or practice of an art: The extended, corrected or verified knowledge has two possible uses
to which persons
•
may be used for theory
building so as to form a more abstract conceptual system. e.g., Theory of relativity, theory of full employment, theory of
wage,
• may be used for some practical or utilitarian goal. E.g., ‘Salesmanship and advertisement increase sales’ is the generalization. From this, if sales have to be increased, use salesmanship and advertisement for increasing sales.
INDUCTIVE AND DEDUCTIVE LOGIC
Induction is the process of reasoning whereby
we arrive at generalizations from particular facts. It is a movement
of knowledge from particular observations / instances to a general rule or
principle. Induction involves a passage from observed to unobserved. It
involves two processes - observation and generalization. For example, if it is
observed in a number of cases that when price increases less is purchased.
Therefore, the generalization is “when price increases demand falls”.
Deduction, on the other hand, is a way of
making a particular inference from a generalization. Deduction is
a movement of knowledge from a general rule to a particular case. For example,
All M.Com. degree holders are eligible for Ph.D. in Commerce is a general
statement. ‘Y’ is a M.Com. degree holder. Therefore, it can be deduced that ‘Y’
is eligible for Ph.D. in Commerce.
SIGNIFICANCE OF RESEARCH IN BUSINESS
Following are the need for research to business
organizations and their managers and how it is useful to them.
1)
Industrial and economic
activities have assumed huge dimensions: In business
trial and error methods are not appreciated, as mistakes can be costly.
Decisions must be quick but accurate and timely and should be objective i.e.,
based on facts and realities. In this back drop business decisions now-days are
mostly influenced by research and research findings. Thus, research helps in
quick and objective decisions.
2)
Research, being a
fact-finding process, significantly influences business decisions: Research not only provides facts and figures to support business
decisions but also enables the business to choose one which is best.
3)
Research
helps the management to discharge its managerial functions of planning, forecasting, coordinating, motivating,
controlling and evaluation effectively.
4)
Research in business can be helpful in the formulation of business policy and strategy.
5)
Research and Development (R
& D) helps Modification of existing product discovery
and invention of new product.
6)
Establishes
relationships between different variables of functional areas by identifying their problems.
7)
Research is a must in the
production area: Product development, new and
better ways of producing goods, invention of new technologies, cost reduction,
improving product quality, work simplification, performance improvement, process
improvement etc., are some of the prominent areas of research in the production
area.
8)
The purchase/material
department uses research to frame alternative suitable policies regarding where
to buy, when to buy, how much to buy, and at what price to buy.
9)
Closely linked with production function is
marketing function. Marketing research studies include problems and
opportunities in the market, product preference, sales forecasting, advertising
effectiveness, product distribution, after sales service.
10)
In the area of financial
management, maintaining liquidity, profitability through proper funds
management and assets management is essential.
11)
Finally, research in business
is a must to continuously update its attitudes, approaches, products goals,
methods, and machinery in accordance with the changing environment in which it
operates.
BUSINESS RESEARCH PROCESS
The business research process consists of a number of
stages: Planning the research activity, execution of the plan and finally
consolidation of the results of the research activity or reporting. The
important activities involved in the research process are listed below:
i.
Selection
of a research problem or researchable area.
ii.
Acquaintance
with the current theory and knowledge and work done
in that area.
iii.
Definition
and specification of the research problem more clearly.
iv.
Formulation
of research hypothesis or at least research
objectives.
v.
Identification of the sources of data.
vi.
Creation and construction of data collection instruments like Questionnaire, Schedules, Scales etc.
vii.
Pre-testing of the instruments and their possible revision.
viii.
Collection
of data and
information, through survey, observation, interview etc.
ix.
Processing and analysis of the data.
x. Interpretation of the data and formal write up i.e., reporting.
DIFFICULTIES IN BUSINESS RESEARCH
In India, researchers in general, and business researchers
in particular are facing several problems. Some of the important problems are
as follows:
1.
The lack of scientific
training: Many researchers
take a leap in the dark without having a grip over research methodology.
Systematic training in business research methodology is a necessity.
2.
There is paucity (lack)
of competent researchers and research supervisors. So, the research
results many a time do not reflect the reality.
3.
Many of the business
organizations are not research conscious and feel that investment in
research is a wastage of resources and does not encourage research.
4.
The Research and
Development Department has become a common feature in many medium
and large organizations. But decision makers do not appear to be very keen
on implementing the findings of their R & D departments. At the same
time, small organizations which are the majority in our economy, are not
able to afford a R & D
department at all.
5.
Many people largely
depend on customs, traditions and routine practices in their decision
making.
6.
There are insufficient
interactions between the University departments and business
organizations, government departments and research organizations. There should
be some mechanism to develop university and industry interaction so that both
can benefit.
7.
The secrecy of business information is
sacrosanct to business organizations. Most of the business
organizations in our country do not part with information to researchers,
except public sector organizations which have the culture of encouraging
research, many of the private sector organizations are not willing to provide
the data. Even when research studies are undertaken, many a time, they are
overlapping, resulting in duplication because there is no proper coordination
between different departments of a university and between different
universities.
8.
Because of the scarcity
of resources many university departments do not come forward to
undertake research.
9.
Delayed publication of
data: There is
difficulty of timely availability of up-to-date data from published sources.
10.
Poor library facilities at many places,
because of which
researchers have to spend much of their time and energy in tracing
out the relevant material and information.
11.Many researchers in our country
also face the difficulty of inadequate
computerized and secretarial assistance, because of which the
researchers have to take more time for completing their studies
12.
Another difficulty in the
research arena is that there is no code of conduct for the researchers.
There is need for developing a code of conduct for researchers to educate them
about ethical aspects of research, maintaining confidentiality of information etc.
TYPES OF RESEARCH
Research may be classified into different types. Several
bases can be adopted for the classification such as nature of data, branch of
knowledge, extent of coverage, place of investigation, method employed, time
frame etc. The following is only an attempt to classify research into different
types.
1)
According to the
Branch of Knowledge: Different
Branches of knowledge may broadly be divided into two:
a.
Life and physical sciences
such as Botany, Zoology, Physics and Chemistry.
b.
Social Sciences such as
Political Science, Public Administration, Economics, Sociology, Commerce and
Management.
Business Education
covers both Commerce and Management, which are part of Social sciences.
Business research is a broad term which covers many areas.
Business Research: The research
carried out, in these areas,
a.
Management research includes various functions of management such as planning,
organizing, staffing, communicating, coordinating, motivating, controlling.
Various motivational theories are the result of research.
b.
Production (also called
manufacturing) research focuses more on
materials and equipment rather than on human aspects. It covers various aspects
such as new and better ways of
producing goods, inventing new technologies, reducing costs, improving product
quality.
c.
Research in personnel
management may range from very simple problems
to highly complex problems of all types. It is primarily concerned with the
human aspects of the business such as personnel policies, job requirements, job
evaluation, recruitment, selection, placement, training and development,
promotion and transfer, morale and attitudes, wage and salary administration,
industrial relations. Basic research in this field would be valuable as human
behaviour affects organizational behaviour and productivity.
d.
Research in Financial
Management includes financial institutions,
financing instruments (e.g., shares, debentures), financial markets (capital
market, money market, primary market, secondary market), financial services (e.g.,
merchant banking, discounting, factoring), financial analysis (e.g., investment
analysis, ratio analysis, funds flow / cash flow analysis) etc.,
e.
Accounting research though narrow in its scope, but is a highly significant area of
business management. Accounting information is used as a basis for reports to
the management, shareholders, investors, tax authorities, regulatory bodies and
other interested parties. Areas for accounting research include inventory
valuation, depreciation accounting, generally accepted accounting principles,
accounting standards, corporate reporting etc.
f.
Marketing research deals with product development and distribution problems, marketing
institutions, marketing policies and practices, consumer behaviour, advertising
and sales promotion, sales management and after sales service etc. Marketing
research is one of the very popular areas and also a well-established one.
Marketing research includes market potentials, sales forecasting, product testing,
sales analysis, market surveys, test marketing, consumer behaviour studies,
marketing information system etc.
g.
Business policy research is basically the research with policy implications. The results of
such studies are used as indices for policy formulation and implementation.
Business history research is concerned with the past. For example, how was
trade and commerce during the Moghul regime.
2)
According to the Nature
of Data
A simple dichotomous classification of research is Quantitative
research and Qualitative research / non-quantitative. Quantitative research is variables based whereas qualitative
research is attributes based. Quantitative research is based on measurement /
quantification of the phenomenon under study. In other words, it is data based
and hence more objective and more popular. Qualitative research is based on the
subjective assessment of attributes, motives, opinions, desires, preferences,
behaviour etc. Research in such a situation is a function of researcher’s
insights and impressions.
3)
According to the
Coverage
According to the number of units covered it can be Macro study
or Micro study. Macro study is a study of the whole whereas Micro study
is a study of the part. For example, working capital management in State Road
Transport Corporations in India is a macro study whereas Working Capital
Management in Andhra Pradesh State Road Transport Corporation is a micro study.
4)
According to Utility or
Application
Depending upon the use of research results i.e., whether it is
contributing to the theory building or problem solving, research can be
Basic or Applied. Basic research is called pure / theoretical /
fundamental research. Basic research includes original investigations for the
advancement of knowledge that does not have specific objectives to answer
problems of sponsoring agencies. Applied research also called Action
research, constitutes research activities on problems posed by sponsoring
agencies for the purpose of contributing to the solution of these problems.
5)
According to the place
where it is carried out
Depending upon the place where the research is carried out, research
can be classified into: Field Studies or field experiments Laboratory
studies or Laboratory experiments Library studies or documentary
research
6)
According to the
Research Methods used
Depending upon the research method used for the investigation, it
can be classified as: a) Survey research, b) Observation research, c) Case
research, d) Experimental research, e) Historical research, f) Comparative
research.
7)
According to the Time
Frame
Depending upon the time period adopted for the study, it can be One
time or single time period research – e.g., One year or a point
of time. Most of the sample studies, diagnostic studies are of this type. Longitudinal
research – e.g., several years or several time periods (a time series
analysis) e.g., industrial development during the five-year plans in India.
8)
According to the purpose
of the Study
What is the purpose/aim/objective of the study? Is it to describe or
analyze or evaluate or explore? Accordingly, the studies are known as.
a.
Analytical Study: The researcher uses facts or information already available and
analyses them to make a critical examination of the material. These are
generally Ex-post facto studies or post-mortem studies.
b.
Evaluation Study: This type of study is generally conducted to examine /evaluate the
impact of a particular event, e.g., Impact of a particular decision or a
project or an investment.
c.
Exploratory Study: The information known on a particular subject matter is little.
Hence, a study is conducted to know more about it so as to formulate the
problem and procedures of the study. Such a study is called exploratory/
formulative study.
METHODS OF RESEARCH
7.1 Survey Method
The dictionary meaning of ‘Survey’ is to oversee,
to look over, to study, to systematically investigate. Survey research is used
to study large and small populations (or universes). Mostly empirical problems
are investigated by this approach. It is a critical inspection to gather
information, often a study of an area with respect to a certain condition or
its prevalence.
For example: a marketing survey, a household survey, All
India Rural Credit Survey.
Survey is a very popular branch of social science research.
Survey research has developed as a separate research activity along with the
development and improvement of sampling procedures. Sample surveys are very
popular now a days. As a matter of fact, sample survey has become synonymous
with survey. For example, see the following definitions:
Survey research can be defined as “Specification of
procedures for gathering information about a large number of people by
collecting information from a few of them”. (Black and Champion).
Survey research is “Studying samples chosen from populations
to discover the relative incidence, distribution, and inter relations of
sociological and psychological variables”. (Fred N. Kerlinger)
By surveying data, information may be collected by
observation, or personal interview, or mailed questionnaires, or administering
schedules or telephone enquiries.
The important features of survey method are as follows:
Ø
It is a field study, as it is always conducted in a
natural setting.
Ø
It solicits
responses directly from the respondents or
people known to have knowledge about the problem under study.
Ø
Generally, it gathers
information from a large population.
Ø
A survey covers a definite geographical area
e.g., A village / city or a district.
Ø
It has a time frame.
Ø
It can be an extensive survey involving
a wider sample or it can be an intensive study covering few samples but is an in-depth and detailed
study.
Ø
Survey research is best adapted
for obtaining personal, socio-economic facts, beliefs, attitudes, opinions.
Survey research is not a clerical routine of gathering facts
and figures. It requires a good deal of research knowledge and sophistication.
The competent survey investigator must know sampling procedures, questionnaire
/ schedule / opinionnaire construction, techniques of interviewing and other
technical aspects of the survey. Ultimately the quality of the Survey results
depends on the imaginative planning, representative sampling, reliability of
data, appropriate analysis and interpretation of the data.
7.2 Observation Method
v Observation means seeing or viewing. It is not a casual but
systematic viewing. Observation may therefore be defined as “a systematic
viewing of a specific phenomenon in its proper setting for the purpose of
gathering information for the specific study”.
v
Observation is a method of
scientific enquiry. We observe a person or an event or a situation or an
incident.
v
Observation is also useful in
social and business sciences for gathering information and conceptualizing the
same. For example, what is the life style of tribal? How are the marketing
activities taking place in Regulated markets? How will the investment
activities be done in Stock Exchange Markets?
Observation as a method of data collection has some
features:
•
It is not only seeing &
viewing but also hearing and perceiving as well.
•
It is both a physical and
a mental activity. The observing eye catches many things which are
sighted, but attention is also focused on data that are relevant to the problem
under study.
•
It captures the natural
social context in which the person’s behaviour occurs.
•
Observation is selective: The investigator does not observe everything but selects the range
of things to be observed depending upon the nature, scope and objectives of the
study.
•
Observation is not casual
but with a purpose. It is made for the purpose
of noting things relevant to the study.
•
The investigator first of all
observes the phenomenon and then gathers and accumulates data.
Observation may be classified in different ways.
1.
According to the setting it can
be
a. observation in a natural setting, e.g.,
Observing the live telecast of parliament proceedings or watching from the visitors’
gallery etc.
b. observation in an artificially stimulated setting, e.g., business games, Tread Mill Test.
2.
According to the mode of
observation it may be classified as (a) direct or personal observation, and (b)
indirect or mechanical observation.
In case of direct observation,
the investigator personally observes the event when it takes place, where as in
case of indirect observation it is done through mechanical devices such as
audio recordings, audio visual aids, still photography, picturization etc.
According to the participating role of the observer.
3.
It can be classified as (a)
participant observation and (b) non-participant observation. In case of
participant observation, the investigator takes part in the activity, i.e., he
acts both as an observer as well as a participant. For example, studying the
customs and life style of tribal by living / staying with them. In case of
non-participant observation, the investigator observes from outside, merely as
an on looker.
Observation method is suitable for a variety of
research purposes such as a study of human behaviours, behaviour of
social groups, life styles, customs and traditions, inter personal relations,
group dynamics, crowd behaviour, leadership and management styles, dressing
habits of different social groups in different seasons, behaviour of
living creatures like birds, animals, lay out of a departmental store,
a factory or a residential locality.
7.3 Case Study Method
Case method of study is borrowed from Medical Science. Just
like a patient, the case is intensively studied so as to diagnose and then
prescribe a remedy. A firm, or a unit is
to be studied intensively with a view to finding out problems, differences,
specialties so as to suggest remedial measures. It is an in-depth/intensive
study of a unit or problem under study. It is a comprehensive study of a firm
or an industry, or a social group, or an episode, or an incident, or a process,
or a programme, or an institution or any other social unit.
According to P.V. Young “a comprehensive study
of a social unit, be that unit a person, a group, a social institution, a
district, or a community, is called a Case Study”.
v
Case Study is one of the
popular research methods.
v
A case study aims at studying everything about something rather than something about everything.
v
It examines
complex factors involved in a given situation so as to identify
causal factors operating in it. The case study describes a case in terms of its
peculiarities, typical or extreme features.
v
It also helps to secure a fund
of information about the unit under study.
v
It is a most valuable method of
study for diagnostic therapeutic purposes.
7.4 Experimental Method
Experimentation is the basic tool of the physical sciences
like Physics, Chemistry for establishing cause and effect relationship and for
verifying inferences. However, it is now also used in social sciences like
Psychology, Sociology. Experimentation is a research process used to observe
cause and effect relationship under controlled conditions.
In other words, it aims at studying the effect of an
independent variable on a dependent variable, by keeping the other
interdependent variables constant through some type of control. In
experimentation, the researcher can manipulate the independent variables and
measure its effect on the dependent variable. The main features of the
experimental method are:
v
Isolation of factors or controlled
observation.
v
Replication of the experiment
i.e., it can be repeated under similar conditions.
v
Quantitative measurement of
results.
v
Determination of cause-and-effect
relationship more precisely.
Three broad types of experiments are:
a.
The natural
or uncontrolled experiment as in case
of astronomy made up mostly of observations.
b.
The field
experiment, the best suited one for social sciences.
(“A field experiment is a research study in a realistic situation in
which one or more independent variables are manipulated by the experimenter
under as carefully controlled conditions as the situation will permit”.) - (Fred N. Kerlinger)
c.
The laboratory experiment is
the exclusive domain of the physical scientist.
(“A laboratory experiment is a research study in which the variance
of all or nearly all of the possible influential independent variables, not
pertinent to the immediate problem of the investigation, is kept at a minimum.
This is done by isolating the research in a physical situation apart from the
routine of ordinary living and by manipulating one or more independent
variables under rigorously specified, operationalized, and controlled
conditions”.) - (Fred N. Kerlinger).
The contrast between the field experiment and laboratory
experiment is not sharp, the difference is a matter of degree. The laboratory
experiment has a maximum of control, whereas the field experiment must operate
with less control.
7.5 Historical Method
When research is conducted on the basis of historical data,
the researcher is said to have followed the historical approach. To some
extent, all research is historical in nature, because to a very large extent
research depends on the observations / data recorded in the past. Problems that
are based on historical records, relics, documents, or chronological data can
conveniently be investigated by following this method. Historical research
depends on past observations or data and hence is non-repetitive, therefore it
is only a post facto analysis. However, historians, philosophers, social
psychiatrists, literary men, as well as social scientists use the historical
approach.
Historical research is the critical investigation of events,
developments, experiences of the past, the careful weighing of evidence of the
validity of the sources of information of the past, and the interpretation of
the weighed evidence. The historical method, also called historiography,
differs from other methods in its rather elusive subject matter i.e., the past.
Ø
In historical research primary and also secondary sources of data can be used.
Ø
The aim
of historical research is to draw explanations and generalizations from the
past trends in order to understand
the present and to anticipate the future.
Ø
It enables
us to grasp our relationship with the past and to plan more intelligently for the future.
7.6 Comparative Method
Comparative research methods have long been used in cross-cultural studies to
identify, analyse and explain similarities and differences across societies.
The benefits to be gained from cross-national work include a deeper
understanding of other cultures and of their research processes.
The comparative method is also frequently called the evolutionary
or Genetic Method. The term comparative method has come about in this
way: Some sciences have long been known as “Comparative Sciences” - such as
comparative philology, comparative anatomy, comparative physiology, comparative
psychology, comparative religion etc. Now the method of these sciences came to
be described as the “Comparative Method”, an abridged expression for “the
method of the comparative sciences”. When the method of most comparative
sciences came to be directed more and more to the determination of evolutionary
sequences, it came to be described as the “Evolutionary Method”.
The origin and the development of human beings, their
customs, their institutions, their innovations and the stages of their
evolution have to be traced and established. The scientific method by which
such developments are traced is known as the Genetic method and also as the
Evolutionary method. The science which appears to have been the first to
employ the Evolutionary method is comparative philology. It is employed to
“compare” the different languages in existence, to trace the history of their
evolution in the light of such similarities and differences as the comparisons
disclosed. Darwin’s famous work “Origin of Species” is the classic application
of the Evolutionary method in comparative anatomy.
The term comparative method as a method of research is used here in its restricted meaning as synonymous with Evolutionary method. To say that the comparative method is a ‘method of comparison’ is not convincing, for comparison is not a specific method, but something which enters as a factor into every scientific method. Classification requires careful comparison and every other method of science depends upon a precise comparison of phenomena and the circumstances of their occurrence. All methods are, therefore, “comparative” in a wider sense.