RESEARCH METHODS

FOR BUSINESS
A Skill-Building Approach
Fifth Edition
Uma Sekaran and Roger
Bougie

Chapter one
Introduction To Research

Topics discussed
What is research?
Business research
Types of business research: applied and
basic
Managers and research
The manager and the consultant-researcher
Internal versus external
consultants/researchers
Knowledge about research and managerial
effectiveness
Ethics and business research

 What is an Organization?
Organization is an entity where two or
more persons work together to achieve
a goal or a common purpose.
A manager is someone who works with
and through other people by
coordinating their work activities in
order to accomplish organizational
goals.

What is research?
Research is the process of finding solutions to a
problem after a thorough study and analysis of the
situational factors.
Research is daily and continuous task of
organization activities.
Research methods are used in the different areas of
business-human resources management,
production, operations management, business
policy and strategy, organizational behavior,
marketing, information systems, accounting,
finance as part of the social science have the same
procedures.

1.

2.

Research is related to all types of problem. A problem

is a discrepancy between an existing and a desired
state of affairs.
Research assists managers to make decisions that
differed according to the types of problems that must
be handled:
Well-structured problems are straightforward, familiar,
and easily defined. In handling this situation, a
manager can use a programmed decision, which is a
repetitive decision that can be handled by a routine
approach.
Poorly structured problems are new or unusual
problems in which information is ambiguous or
incomplete. These problems are best handled by a
non-programmed decision that is a unique decision; it
requires a custom-made solution.

Business research
In general, business research is a systematic and
organized effort to investigate a specific problem
encountered in the work setting, which needs a
solution.
Systematic refers to a series of steps that are designed
and executed to find a solution or answers to specific
issue (identifying the problem, recognizing the relevant
factors in the situation to be investigated, gathering
data, analyzing data and implementation).
Specifically, Business research is an organized,
systematic, data-based (external or internal), critical,
objective, scientific inquiry or investigation that used
to rectify a specific problem.

Inputs (quantitative and qualitative data)

Process (inquiry, investigation, examination, and experimentation)

Outputs (facts or results that helps

a manager to deal with the problem situation).

Decision making: the process of choosing from among

alternative solutions to resolve a problem.

The importance of research

Research generates possible alternatives to solve

specific problem efficiently or/and to improve the
decision-making process.
Research decreases the uncertainty of situations
encountered the organization.
Decrease the alternatives of situational factors that
affect the problem.
Forecast the future of business situations resultant
to the complexity of modern organizations, and the
uncertainty of the environment.
Adapt with, but not control, the external environment
and control the internal environment.
It is a helpful tool to discriminate between good and
bad studies published in (professional) journals and
to discriminate between good and bad studies
conducted by research agencies.

Research and the manager

High management level

Strategy formulation and implementation.
Supervisory performance, managerial leadership
style, and performance appraisal systems.
Validation of performance appraisal systems.
Updating policies and procedures in keeping with
latest government regulations and organizational
changes.
Cultural differences and the dynamics of managing a
multinational firms.
Participative management and performance
effectiveness.
Differences in leadership positions, salaries, and
leadership styles.

Human resources
Employee behaviors such as performance, absenteeism,
and turnover.
Employee attitudes such as job satisfaction, loyalty, and
organizational commitment.
Employee selection, recruitment, training, and retention.
Human resource management choices and
organizational strategy.
Production
Just-in-time systems, continuous-improvement
strategies, and production efficiencies.
Downsizing.
Advanced manufacturing technologies and information
systems.

Marketing
Organizational outcomes such as increased sales,
market share, profits, growth, and effectiveness.
Consumer decision making.
Customer relationship management.
Consumer satisfaction, complaints, customer loyalty,
and word-of-mouth communication.
Complaint handling.
Delivering and performing service.
Product life cycle, and product innovation.
Impression management, logos, and image building.
Product positioning, product modification and new
product development.
Keeping ahead of the competition.

Financing
Cost of capital, valuation of firms, dividend policies,
and investment decisions.
Risk assessment, exchange rate fluctuations, and
foreign investment.
Tax implications of reorganization of firms or
acquisition of companies.
Collection of accounts receivable.
Development of effective cost accounting procedures.
Qualified pension plans and cafeteria-type benefits for
employees.
Deferred compensation plans.

Information system
Installation of effective management information
systems.
Installation, adaptation, and updating of computer
networks and software suitable for creating effective
information systems for organizations.
Installation of an effective data warehouse and data
mining system for the organization.

Types of business research: applied and basic

Applied research

Routine or general
scope
Solve a current
problem
Demanding a timely
solution; a shorter
time frame

Based on a scientific
manner

Basic research

Generate a body of
knowledge
Comprehend how certain
problems that occur in
organizations can be solved
Not demanding a timely
solution

Based on a scientific
manner

Managers and Research

According to conduct a research, managers have two

alternative:

Firstly: knowing how to conduct research

methods effectively.
It gives the mangers the advantages of:
Understanding, predicting, and controlling events
that are dysfunctional within the organization.
Helping the managers to sense, spot, and deal with
problems before they got out of hand or get out of
control.
Helping the managers to interact effectively with the
problems.
Determining whether or not the recommended
solutions are appropriate for implementation.

 Understanding and discriminating the information

disseminated in business journals.
Saving the time and cost.
Sharpening the sensitivity of managers to the myriad
variables operating in a situation; managers easily
foresee what information the researchers might
require.

Secondly: Hiring of outside researchers or

consultants to conduct the research.
It used to study some of the more complex, timeconsuming problems that managers may encounter.

The manager-researcher relationship

The manager must interact effectively with the
research team and delineate the roles for the
researchers and the management.
The manager has to inform the researchers what
types of information may be provided and which of
their records will not be made available to them.
The manager should make sure that there is
congruence in the value systems of management
and the consultants.
Exchange of information helps to increase the
rapport and trust levels between the two parties.

Internal versus external

consultants/researchers
Internal consultants/researchers
Some organizations have Management Services
Department or R & D to solve certain problems. This
orientation is useful in several ways.
The internal team have a better chance to be
accepted by the employees.
The team requires much less time to understand the
structure, the philosophy and climate, and the
functioning and work systems of the organization.
An easily and swiftness of implementation.
Less cost than an external team cost.
For problems of low complexity, the internal team
would be ideal.

1.

2.

3.

4.

Disadvantages of internal consultants/researchers

The internal team may quite possibly fall into a
stereotyped way of looking at the organization and
its problems.
The powerful coalitions in the organization may
influence the internal team to conceal, distort, or
misrepresent certain facts.
The recommendations may not get the
consideration and attention they deserve if the
management does not perceive them as experts.
Certain organizational biases of the internal
research team might make the findings less
objective and consequently less scientific.

External consultants/researchers

1.
2.

3.
4.
5.
6.

The advantages of external consultants/researchers

Having worked with different types of organizations
provide them with a wealth of experience in dealing with
different problems.
The external teams might have more knowledge of
current sophisticated problem-solving models through
their periodic training programs, which the teams within
the organization may not have access to.
There is no chance to fall into a stereotyped way of
looking at the organization and its problems.
No influence for the powerful coalitions in the
organization to conceal, distort, or misrepresent certain
facts.
The management gives more consideration and attention
to the findings of research.
For problems of high complexity, the external team would
be ideal.

Disadvantages of external consultants/researchers

1. The cost of hiring an external research team is
usually high.
2. Departments and individuals likely to be affected by
the research study may perceive the study team as
a threat and resist them.
3. The external team may charge additional fees for
their assistance in the implementation and
evaluation phases.
4. The speed and swiftness of implementation are not
high.
In general, the managers should weigh the pros and
cons of using internal and external researchers
before making a decision.


1.

The relationship between Knowledge about research and

managerial effectiveness
Managers are responsible for the final outcome by making
the right decisions at work. Therefore,
Knowledge of research heightens the sensitivity of
managers to many internal and external factors of
organizational environment.
It helps to facilitate effective interactions with consultants
and comprehension of the nuances of the research
process.
Using the sophisticated technology such as simulation
and model building may increase profitable application in
certain business areas.
knowledge of research greatly enhances the decisionmaking skills of the manager through focusing on problem
solutions, fully understanding the recommendations made,
and why and how they have been arrived at, make for good
managerial decision making.


1.

2.

3.

Ethics and business research

It refers to a code of conduct or expected societal norm
of behavior while conducting research.
It pervades each step of the research process- data
collection, data analysis, reporting, and dissemination
of information on the Internet, if such an activity is
undertaken.
It begins with the person instituting the research, who
should do so in good faith, pay attention to what the
results indicate and surrendering the ego, pursue
organizational rather than self-interests.
Ethical conduct should also be reflected in 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.

 Discuss, with reasons, whether they fall

into the category of applied or basic
research
For Scenario 1, explain, with reasons,
who will conduct the research.

Scenario 1
To acquire or not to acquire: that is the question.
Companies are very interested in acquiring other
firms, even when the latter operate in totally
unrelated realms of business. For example, CocaCola has announced that it wants to buy China
Huiyuan Juice Group in an effort to expand its
activities in one of the world's fastest-growing
beverage markets. Such acquisitions are claimed to
"work miracles." However, given the volatility of the
stock market and the slowing down of business,
many companies are not sure whether such
acquisitions involve too much risk. At the same time,
they also wonder if they are missing out on a great
business opportunity if they fail to take such risk.
Some research is needed here!

Scenario 2
Reasons for absenteeism
A university professor wanted to analyze in
depth the reasons for absenteeism of
employees in organizations. Fortunately, a
company within 20 miles of the campus
employed her as a consultant to study that
very issue.

Scenario 3
Effects of service recovery on customer
satisfaction
A research scientist wants to investigate the
question: What is the most effective way for
an organization to recover from a service
failure? Her objective is to provide guidelines
for establishing the proper "fit" between
service failure and service recovery that will
generalize across a variety of service
industries.