Research and the Manager

Research and the Manager

A common experience of all organizations is that the managers thereof encounter

problems big and small on a daily basis, which they have to solve by making the

right decisions. In business, research is usually primarily conducted to resolve problematic issues in, or interrelated among,

Definition of Research

Definition of Research

We can now define business research as an organized, systematic, data-based,

critical, objective, scent Wc inquiry or investigation into a spec Mc problem,

undertaken with the purpose of finding answers or solutions to it/In essence,

research provides the needed information that guides managers to make

informed decisions to successfully deal with problems. The information pro-

vided could be the result of a careful analysis of data gathered firsthand or of

data that are already available (in the company, industry, archives, etc). Data

can be quantitative (as generally gathered through structured questions) or

qualitative (as generated from the broad answers to specific questions in inter-

views, or from responses to open-ended questions in a questionnaire, or

through observation, or from already available information gathered from var-

ious sources).

BUSINESS RESEARCH

BUSINESS RESEARCH

Business research can be described as a systematic and organized effort to invest-

tailgate a specific problem encountered in the work setting, that needs a solution.

It comprises a series of steps designed and executed, with the goal of Finding

answers to the issues that are of concern to the manager in the work environ-

ment. This means that the first step in research is to know where the problem

areas exist in the organization, and to identify as clearly and specifically as pos-

sible the problems that need to be studied and resolved. Once the problem that

needs attention is clearly defined, then steps can be taken to gather information,

analyze the data, and determine the factors that are associated with the problem

and solve it by taking the necessary corrective measures.

This entire process by which we attempt to solve problems is called research.

Thus, research involves a series of Well-thought-out and carefully executed activ-

ities that will enable the manager to know how organizational problems can be

solved, or at least considerably minimized. Research thus encompasses the

processes of inquiry, investigation, examination, and experimentation, These

processes have to be carried out systematically, diligently, critically, objectively,

and logically. The expected end results would be the discovery that will help the

manager to deal with the problem situation,

The difference between the manager who uses common sense alone to ana-

lyze and make a decision in a given situation, and the investigator who uses a

scientific method, is that the latter does a systematic inquiry into the matter and

proceeds to describe, explain, or predict phenomena based on data carefully coi-

lected for the purpose.

The Excitement of Research and Why Managers Should Know about-Research

The Excitement of Research and Why Managers Should Know
about-Research



Modern technology has made research an exciting and a relatively smooth

process. Today a personal computer with a modem or any means to an Inter-

net connection places one within easy reach of knowledge of what is hap-

penning in the global markets and how the world economy is impacting on

business. Chapter 5 gives a broad idea of how technology has facilitated the

research process and decision making, and the later chapters describe the use

of technology in information gathering, data collection, data analysis, and data

presentation. By grasping the fundamentals of the research process and keep-

ing abreast of modern technology, such as computers with enormous caps-

ability to store and retrieve information, you as a manager can face the

competitive global market with its multitude of 'complex and confusing factors

with greater confidence.

Knowledge of research not only helps one to look at the available information

in sophisticated and creative ways in the fast-paced global environment that busi-

senses face, but this knowledge also helps in other ways. For example, you can

interact more effectively with research consultants who work for you, you can

discriminate between good and bad studies published in professional journals,

and if so desired, you yourself can undertake research to solve problems. More-

over, knowledge in the business area is exploding and there is an overwhelm-

ing maze of information available through the Internet, which has to be sifted

through to determine its reliability. Identifying the critical issues, gathering

rele-vant information, analyzing the data in ways that would help decision making,

and implementing the right course of action, are all facilitated by understanding

business research. After all, decision making is merely a process of choosing

from among alternative solutions to resolve a problem and research helps to gen-

rate viable alternatives for effective decision making.

What is Research

What is Research 

just close your eyes for a minute and utter the word research to yourself. What

kinds of images does this word conjure up for you? Do you visualize a lab with?

Scientists at work with Bunsen burners and test tubes, or an Einstein-like char-

acter writing dissertations on some complex subject, or someone collecting data

to study the impact of a newly introduced day-care system on the morale of

employees? Most certainly, all these images do represent different aspects of

research. Research, a somewhat intimidating term for some, is simply the process

of tending solutions to a problem after a thorough study and analysis of the sit-

national factors. Managers in organizations constantly engage themselves in

studying and analyzing issues and hence are involved in some form of research



activity as they make decisions at the workplace. As is well known, sometimes

managers make good decisions and the problem gets solved, sometimes they

make poor decisions and the problem persists, and on occasions they make such

colossal blunders that the organization gets stuck in the mire. The difference

between making good decisions and committing blunders lies in how managers

go about the decision-making process, In other words, good decision making

fetches a “yes” answer to the following questions: Do managers identify where

exactly the problem lies, do they correctly recognize the relevant factors in the

situation needing investigation, do they know what types of information are to

be gathered and how, do they know how to make use of the information so col-

lected and draw appropriate conclusions to make the right decisions, and finally,

do they know how to implement the results of this process to solve the prob

lem? This is the essence of research and to be a successful manager it is impor-

tant for you to know how to go about making the right decisions by being

knowledgeable about the various steps involved in finding solutions to prob-

lematic issues. This is what this book is all about.

INTRODUCTION TO RESEARCH

INTRODUCTION TO RESEARCH

TOPICS DISCUSSED

DEFINITION OF RESEARCH

APPLIED AND BASIC RESEARCH

WHY MANAGERS SHOULD KNOW ABOUT RESEARCH

MANAGERS AND THE CONSULTANT-#RESEARCHER

° The Manager-Researcher Relationship g

° Internal versus External Researchers and Consultants

KNOWLEDGE ABOUT RESEARCH AND MANAGERIAL EFFECTIVENESS

ETHICS AND BUSINESS RESEARCH

CHAPTER OBJECTIVES

After completing Chapter 1' you should be able to:

1, Describe what research is and how it is defined.

2. Distinguish between applied and basic research, giving examples, and

discussing why they would fall into one or the other of the two categories.

5. Explain why managers should know about research.

4. Discuss what managers should and should not do in order to interact most

effectively with researchers.

5. Identify and fully discuss specific situations in which a manager would be

better off using an internal research team, and when an external research

team would be more advisable, giving reasons for the decisions.

6. Discuss what research means to you and describe how you, as manager,

might apply the knowledge gained about research. (

7, Be aware of the role of ethics in business research.

On August 27, 2001, Chunk Orlando, CEO of a 14-year-old automobile company,

was mentally assessing and pondering over the state of affairs in his organiza-

tion, Of late, things had not been going well, and matters seemed to be getting

out of hand. The market value of the shares of the company was down 72%,

dropping from $60 per share to $16.75. Performance and productivity levels were

on the decline and the quarterly loss of $206 million on sales of about 8 billion

did not portend a bright future for the company. The advertising agency did not

seem to be doing a good job either. To top it all, there was a lawsuit filed for

discrimination against female employees in the company. Chuck felt he had to

take a very active role in the running of the organization and make a 180 degree

change from his hitherto hands-off policy.

Instead of ruminating on the past, Chuck wanted to focus on the present and

plan for the future. Apart from the obvious changes like increasing the produc-

tivity of workers and getting a more effective advertising agency, Chuck felt that

he needed to take stock of “intangible” assets such as patents, customer lists,

brand value, intellectual knowledge of designers, and the like. These evaluations

would give investors a sense of the value of the assets and whether resources

were being effectively utilized. “Unless the accounting process takes stock of

these, capital cannot be allocated in a sensible way, analysts will not be able to

evaluate the company, and investors will not understand the worth of the com-

pany,” he said to himself.

There were several great ideas that came to Chuck’s mind, such as assessing

whether the current models of the vehicles manufactured appealed sufficiently

to the trendy _tastes of the increasing number of affluent buyers in the 25 to 40

age group, However, Chuck was baffled as to how to go about these enormous

tasks. Several questions came to his mind and he posed the following important

issues to himself: “How does one increase efficiency and productivity?” “How

does one account for intangible assets?” “Does anyone know at all?" and “How

does one go about assessing advertising needs and effectiveness?”

A major concern was to decide whether or not he should slash the advertising

budget since the anticipated revenues were not forthcoming during this downturn.

He remembered having read somewhere that those who did not bumish their

brands through increased advertisement budgets might find themselves worth a lot

less when the tough times end. IBM, for instance, was stated to have lost only 1%

of brand value last year, compared to bigger declines at other hi-tech companies

because IBM had increased its advertising budget. “But from where would the

advertising funds come?” he wondered. Such thoughts very much taxed his mind.

“Certainly,” he said to himself, “the company’s problems are a function of

industry trends, the economy, idle capacity, and the like. But there is much scope

for improvement on various fronts, such as increasing gas mileage, which would

find great favor with the government and customers, better designing and engi-

neering, improved marketing, designing for the trendy mod group, as well as

catering to clients in the lower economic strata, in addition to increasing the pro-

ductivity of workers.”

Then there were the ethical issues that disturbed Chuck. At the personal level,

he wondered if he should give himself a raise in salary and other perks when



WHATISRESEQRCH? 5

the rest of the company employees had a freeze on their salaries. Did he deserve

the compensation he would get when the company was on a downward spiral,

at least for now? He also toyed with the idea that a token cut in his salary would

serve as a morale booster to company employees.

He wanted answers to several of these issues, but did not know who would

help him to find thern. He knew that research in these areas would help, but did

not know where to seek the necessary guidance. Also, how would he verbalize

his various concerns and handle the researchers? He had broad visions for the

future of his company, but was at a loss to know how to execute these plans.

‘just because one is able to design a rail system and make trains, it does not nec-

essarily follow that one can make them run too,” he thought to himself.

It is not infrequently that chief executives and managers at various levels in an

organization find themselves facing such dilemmas. This book helps to find solu-

tions to the problems that managers, and those responsible for the execution of

projects, often face.

As a manager, you will have to make several decisions each day at work.

What would help you to make the right decisions? Will it be your experience

on the job, your sixth sense or hunch, or will you just hope for good luck? For

sure, all of these will play a part ujier you have thoroughly investigated or

researched the problem situation and generated some alternative solutions to

choose from. Whether or not managers realize it, they are constantly engaged

in research as they try to find solutions to the day-to-day problems, big and

small, that confront them at work. Some of the issues are solved with relative

ease, as when a machine on the shop floor stops working, and the foreman,

with his past experience, hastens to do the necessary repair and gets it to run

smoothly again. A few problems may present moderate difficulty, requiring

some time and effort for the manager to investigate into and find a solution, as

for example, when many employees absent themselves from work frequently.

Yet other problems could be quite complex and the manager might proceed to

seek the help of an “expert researcher” to study the issue and offer solutions,

as in the case of a company consistently incurring losses to the perplexity and

dismay of everyone.

Preface

Preface

Revising Research Metbodsfor Business for this fourth edition has been an enjoy-

able experience. As in previous editions, the simple and informal style of pre-

setting information has been maintained and the focus 'on practical skill building

preserved. The book provides several examples to illustrate the concepts and

points presented. Users Will also note throughout the book the variety of exam-

pales in the different areas of business-production, operations management,

business policy and strategy, organizational behavior, human resources manage-

meant, information systems, marketing, accounting, and finance-cited to illus-

trite that research finds application in all areas of business. It is hoped that

students will Hand research to be interesting, no intimidating, and of practical use.

In addition to the inclusion of more mini exercises at the end of chapters from

cases adapted from business journals, the chapter on technology has been sub-

statically revised to keep in line with the changing trends. The application of

software for 'collecting data, analyzing them, and presenting the results is also

discussed in the relevant chapters. The final chapter on managerial decision

making anal research elucidates the research cycle as encompassing the full

gamut from qualitative data analysis to quantitative hypothesis testing empirical

studies. An additional case is presented to emphasize the need for research by

exemplifying a company’s failure due to lack of investigation.

Data analysis is illustrated through the current SPSS Version 11.0 in the data

analysis chapter and the student version thereof is available with this edition of

the book for the interested student.

Most chapters in the book include managerial implications of the contents dis-

cussed, emphasizing the need for managers to understand research. The biblical

considerations involved in conducting research are also clearly brought out. The

dynamics of cross-malarial research in terms of instrument development, surveys,

and sampling are discussed, which in the context of today’s global economy will

be useful to students. The final chapter of the book discusses tvvo case studies,

one set in a cross-cultural context further highlighting the need to be culture-sen-

sativa, and the other illustrating how, for lack of research intervention, an orga-

negation can be obliterated.

The Refresher Module on Statistical Terms and Tests at the end of the book

should help instructors to assign the material to students when they are ready to

do so. It is presented in a simple way without discussing derivation of formulas.

so that the student has enough knowledge to conduct research applying appro-

priate statistical tests. '