Research Lecture Mettu University

CHAPTER I
RESEARCH METHODS: AN OVERVIEW

1.1 Meaning of Research
What is research?
Information is power because it is the basis for decision making. Thus organizations are
engaged in furnishing information continuously to improve their decisions. Research is thus
a tool for providing information.
The word research is derived from the word search preceded by the prefix re (re-search).
Thus literally the meaning of research is searching again. As shown above, different
scholars may define research differently. For the purpose of this course, however, research
may be defined as the systematic and objective process of (planning), gathering,
recording, analyzing and interpreting data to prove or disprove a hypothesis
(Zikmund, 2000).
Important Points in this definition
 Research is a process that involves planning, gathering, recording,
processing, analyzing and interpreting data; the data can be primary or
secondary.
 Research is systematic that it is based on scientific techniques of inquiry and
analysis; it does not refer haphazard and subjective processes.
 Research is objective that it is reliable and can be repeated by the same or
other researchers; this calls for using clearly prescribed research techniques
and methodologies which a researcher may use them for testing the validity
of a hypothesis.
 Research is purposeful that it aims at testing a hypothesis or a tentative
solution
1.2. Objectives and Significance of Research
Objectives of Research
According to Kothari (2004), the objectives of research can be summarized as follows. The
purpose of research is to discover answers to questions through the application of scientific
procedures. The main aim of research is to find out the truth which is hidden and which has
not been discovered as yet. To gain familiarity with a phenomenon or to achieve new
insights into it (studies with this object in view are termed as exploratory or formulative
research studies);
 To portray accurately the characteristics of a particular individual, situation or a
group (studies with this object in view are known as descriptive research
studies);
 To determine the frequency with which something occurs or with which it is
associated with something else (studies with this object in view are known as
diagnostic research studies);
 To test a hypothesis of a causal relationship between variables (such studies are
known as hypothesis-testing research studies).
Significance of Research
All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to
inquiry, and inquiry leads to invention. Kothari (2004) summarizes the significance of
research as follows.
 Research provides the basis for nearly all government policies in our economic system.
 Research has its special significance in solving various operational and planning
problems of business and industry
 Research is equally important for social scientists in studying social relationships and its
seeking answers to various social problems.
By Naol A. Department of Management/ Mettu University 1

 Research can also mean the out let for new ideas and insights
Emory and Cooper (1991) summarize the importance of research from individual angle,
particularly in management and business as follows.
 A manager often needs more information before making certain decisions. Your
options are limited if there is no one to whom you can delegate this task; you either
do not gather the information, or gather it yourself, it is hoped, with some reasonable
level of skill. It is obvious which option is the better.
 You may be called upon to do a research study for a higher-level executive.

 You may find a career position as a research specialist. As a specialized function, it
offers attractive career opportunities especially in the areas of financial analysis,
marketing research, and operations research.
The Process, Purposes and Classifications of Research
Figure 1: Stages in the Research Process
Problem Identification
Problem Definition
Literature review
Familiarize yourself with
existing research and theory
on the topic
Redefine the problem

(Based on evidence from
literature)
Formulate Hypothesis
What do you intent to test?
What is the r/s b/n the
variables?
Select a Research Design

Choose one or more research
methods Census, survey,
experiment, observation sampling
design.

Carryout the Research.
- Gathering data
- Processing data
- Analyzing data
Interpret Results
Work with implications of the data
collected and analyzed.
Report Research Findings

- What is the significance
- How do they relate to previous
finding and/or existing theory)
Your findings are discussed and

registered in the wider academic
community. leaving perhaps to
further research and redefinition of a
problem.
Purposes and Classifications of Research

Research is knowledge/Knowing the gap between what is happening and what we think to
happen. Research is conducted for various purposes and on the basis of the purpose of
research and the methodology employed; the following are the common types of research
Basic or Pure Versus Applied Research
Basic research is conducted only to increase our knowledge of what is being studied such
as patterns of social or psychological behavior. Basic research is made for the sake of
research and is not applied.
Applied research is conducted to be applied in solving socio-economic or industrial
problems; and thus have policy implication.
Descriptive versus explanatory research
This classification is based on the level and purpose of analysis to be made. Descriptive
research aims only at describing a situation or a set of circumstances. It tries to answer
question like how many, how, and what is happening. On the other hand explanatory
research aims at explaining the relationship between or among variables. It answers the
question of why?
Exploratory research

The purpose of exploratory research is making available what is not basically available.
Often it is not an independent research by itself. The purpose of exploratory research is to
collect unavailable basic information on a certain phenomena or issue, on the basis of which
it would be possible to formulate a hypothesis and tests it at a later date. It is preliminary
research used to explore basic issues or relationships.
Qualitative Versus Quantitative Research
This classification is based on the nature of the variables to be analyzed and the techniques
of analysis to be used. Qualitative research is used to analyze qualitative variables such as
attitude, behavior, feeling, and satisfaction, belief, etc.
On the other hand quantitative research involves analysis of quantifiable or statistical data
that is often measurable. These variables may include satisfaction, motivation, commitment,
feeling, emotion, religiosity, attitude, etc.
1.4 Business Research
Scope of Business Research
The scope of business research is limited by one's definition of "business." Certainly
research in the production, finance, marketing, or management areas of a for-profit cor-
poration is within the scope of business research. A broader definition of business, however,
includes not-for-profit organizations, including the public sector and nongovernmental
organizations
Each of these organizations exists to satisfy social needs, and they require business skills to
produce and distribute the services that people want. Business research may be conducted
by organizations that are not business organizations.
Business Research Defined
Business research is defined as the systematic and objective process of gathering
recording, and analyzing data for aid in making business decisions.
This definition suggests
 research information is neither intuitive nor haphazardly gathered. It connotes
patient study and scientific investigation wherein the researcher takes another, ore
careful look at data to discovery all that can be known about the subject of study.
 The information generated or data collected and analyzed are to be accurate, the
business researcher must be objective. The role of the researcher is to be detached
and impersonal rather than biased in an attempt to prove preconceived ideas. If bias
enters the research process, the value of the data is considerably reduced.
 Its objective is to facilitate the managerial decision-making process for all aspects of
a business: finance, marketing, personnel, and so on. The definition is not restricted
to one aspect of business.
Research should be an aid to managerial judgment, not a substitute for it. There is more
to management than research. Applying research remains a managerial art.
Business research deals with difficult topics such as human behavior, attitude, performance,
satisfaction, perception, etc. On the other hand, managers and decision makers often think
they already know a lot about these topics and do not accept research findings that differ
from their opinions and suggestions. By reducing the uncertainty of decisions, it minimizes
the risk of making wrong decisions. Moreover, research is an aid to managerial judgment,
not a substitute.
Finally research involves scientific inquiry, discussion, explanation or prediction.
MANAGERIAL VALUES/IMPORTANCE OF BUSINESS RESEARCH
"The secret of success is to know something nobody else knows."

Aristotle Onassis
The prime managerial value of business research is that it reduces uncertainty by providing
information that improves the decision-making process. The decision-making process

associated with the development and implementation of a strategy involves four interrelated
stages:
 Identifying problems or opportunities.
 Diagnosis and assessment
 Selecting and implementing a course of action.
 Evaluating the course of action.
Identifying Problems and/or Opportunities

Before any strategy can be developed, an organization must determine where it wants to go
and how it will get there. Business research can help managers plan strategies by deter-
mining the nature of situations by identifying the existence of problems or opportunities
present in the organization.
Business research may be used as a scanning activity to provide information about what is
occurring within an organization or in its environment. The mere description of some social
or economic activity may familiarize managers with organizational and environmental
occurrences and help them understand a situation. Consider two examples:
Once business research indicates a problem, managers may feel that the alternatives are
clear enough to make a decision based on experience or intuition, or they may decide that
more business research is needed to generate additional information for a better under-
standing of the situation.
Diagnosis and Assessment

After an organization recognizes a problem or identifies a potential opportunity, an important
aspect f business research is often the provision of diagnostic information that clarifies the
situation. Managers need to gain insight about the underlying factors causing the situation. If
there is a problem they need to specify what happened and why. If an opportunity exists
they may need to explore, clarify, and refine the nature of the opportunity. If multiple
opportunities exist, research may be conducted to set priorities. Quantitative or qualitative
investigations may help managers better to understand what alternative courses of action
are practicable.
Selecting and Implementing a Course of Action
After the alternative courses of action have been clearly identified, business research is
often conducted to obtain specific information that will aid in evaluating the alternatives and
in selecting the best course of action. For example, suppose a glass manufacturer must
decide to build a factory either in Addis Ababa or in Mekelle, business research can be
designed to supply the relevant information necessary to determine which course of action
is best for the organization.
Opportunities may be evaluated through the use of various performance criteria. For
example, estimates of market potential allow managers to evaluate the revenue that will be
generated by each of the possible opportunities. Even the best plan is likely to result in
failure if it is not properly implemented.
Business research may be conducted with the people who will be affected by a pending
decision to indicate the specific tactics required to implement that course of action.
Evaluating the Course of Action

After a course of action has been implemented, business research may serve as a tool to
inform managers whether planned activities were properly executed and whether they
accomplished what they were expected to accomplish. In other words, managers may use
evaluation research to provide feedback for evaluation and control of strategies and tactics.
Evaluation research is the formal, objective measurement and appraisal of the extent to

which a given activity, project, or program has achieved its objectives. In addition to mea-
suring the extent to which completed programs achieved their objectives or to which contin-
uing programs are presently performing as projected, evaluation research may provide
information about the major factors influencing the observed performance levels.
In addition to business organizations, nonprofit organizations, such as agencies of the fed-
eral government, state government or any public sector may frequently conduct evaluation
research on policies and programs implemented.
Performance-monitoring research is a term used to describe a specific type of evaluation

research that regularly, perhaps routinely, provides feedback for the evaluation and control
of recurring business activity. For example, most firms continuously monitor wholesale and
retail activity to ensure early detection of sales declines and other anomalies.
Performance-monitoring research is an integral aspect of total quality management pro-

grams. Total quality management (TQM) is a business philosophy that embodies the belief
that the management process must focus on integrating customer-driven quality throughout
the organization. Total quality management stresses continuous improvement of product
quality and service. Managers improve durability and enhance features as the product ages.
They strive to improve delivery and other services to keep their companies competitive.
Exhibit 1.1: Determining When Business Research Should Be Conducted
Time Availability Nature of the

Constraint of data Decision Benefits Vs Conduct
Costs business
Research
Is sufficient Is the
time available Is the Does the value Yes
Yes information Yes decision of Yes of the research Conduct it
before a already on
managerial considerable information
hand strategic or exceed the cost
decision must inadequate
be made? tactical of conducting
for making importance? research?
the decision?
No No No No
Business Research should not be conduced

Exhibit 1: Major Areas of Business Research
General Business Conditions & Corporate Research
 Short-range forecasting (up to one year)  Organizational communication

 Long-range forecasting (over one year)  Time and motion studies
 Studies of business and industry trends  Physicalenvironment studies
 Studies of global environments  Labor union trends
 Inflation and pricing studies
 Plant and warehouse location studies
Financial and Accounting Research Sales and Marketing Research
 Forecasts of financial interest-rate trends  Measurement of market potentials

 Stock, bond, and commodity value predictions  Market-share analysis
 Capital formation alternatives  Market segmentation studies
 Research related to mergers and acquisitions  Determination of market
Risk-return trade-off studies characteristics
 Impact of taxes  Sales analysis
 Portfolio analysis  Establishment of sales quotas,
 Research on financial institutions Expected- territories
rate-of-return studies  Distribution-channel studies
 Capital asset pricing models  New-product concept tests
 Credit risk  Test-market studies
 Cost analysis
Management and Organizational Behavior Research Information Systems Research
 Total quality management  Knowledge and information

 Morale and job satisfaction needs assessment'
 Leadership style  Computer information system
 Employee productivity use and evaluation Technical
 Organizational effectiveness support satisfaction studies
 Structural studies  Database analysis Data mining
 Absenteeism and turnover
 Organizational climate

Corporate Responsibility Research
 Ecological impact studies

 Legal constraints on advertising and
promotion studies
 Sex, age, and racial discrimination
worker-equity
 studies Social values and ethics
studies

Data, Information, and Knowledge Management in Business
Managers make a distinction between data and information. The primary difference between
data and information is that data are simply facts, or recorded measures of certain
phenomena, while information refers to a body of facts in a format suitable for decision
making or in a context that defines relationships between pieces of data.
Knowledge management is a process to create an inclusive, comprehensive, easily
accessible organizational memory, which is often called the organization's intellectual capi-
tal. The purpose of knowledge management is to organize the 'intellectual capital' of an
organization in a formally structured way for easy use.
New information technologies and new ways of thinking about data, information and
knowledge lie at the heart of knowledge management. Effective organizations systematically
manage activities from information acquisition to the distribution of knowledge. Tools for
preserving and sharing data, information and knowledge involve global information systems,
decision support systems, the Internet and Intranets, as well as communication vehicles as
basic as newsletters.
1.6. Characteristics of a Good Research
Good research can be thought of as that which uses the scientific method. One widely
accepted view suggests that good research should meet the following tests:
1. The purpose of the research, or the problem involved, should be clearly defined and
sharply delineated in terms as unambiguous as possible.
The statement of the research problem should include analysis into its simplest
elements, Its scope and limitations, and precise specifications of the meanings of all
words significant to the research. Failure of the researcher to do this adequately may
raise legitimate doubts in the minds of readers as to whether the researcher has
sufficient understanding of the problem to make a sound attack upon it.
2. The research procedures used should be described in sufficient detail to permit another
researcher to repeat the research.
Excepting when secrecy is imposed in the national interest, research reports should
reveal with candor the sources of data and the means by which they were obtained.
Omission of significant procedural details makes it difficult or impossible to estimate the
validity and reliability of the data and justifiably weakens the confidence of the reader in
research.
3. The procedural design of the research should be carefully planned to yield results that
are as objective as possible.
When a sampling of the population is involved the report should include evidence
concerning the degree of representativeness of the sample. A questionnaire ought
not to be used when more reliable evidence is available from documentary sources
or by direct observation. Bibliographic searches should as thorough and complete as
possible. Experiments should have satisfactory controls. Direct observation should
be recorded in as soon as possible after the event. Efforts should be made to
minimize the influence of personal bias in selecting and recording data.
4. The researcher should report, with complete frankness, flaws in procedural design and
estimate their effect upon the findings.
There are very few perfect research designs. Some of the imperfections may have
little effect upon the validity and reliability of the data; others may invalidate them
entirely. A competent researcher should be sensitive to the effects of imperfect
design, and his experience in analyzing the data should give him a basis for
estimating their influence.
5. Analysis of the data should be sufficiently adequate to reveal its significance, and the

methods of analysis used should be appropriate.
The extent to which this criterion is met is frequently a good measure of the
competence of the researcher. Twenty years of experience in guiding the research of
graduate students leads the writer to conclude that adequate analysis of the data is
the most difficult phase of research for the novice. The validity and reliability of data
should be checked carefully. The data should be classified in ways that assist the
researcher to reach pertinent conclusions. When statistical methods are used, the
probability of error should be estimated and the criteria of statistical significance
applied.
6. Conclusions should be confined to those justified by the data of the research and limited
to those for which the data provide an adequate basis.
Researchers are often tempted to broaden the basis of inductions by including
personal experiences not subject to the controls under which the research
data were gathered. This tends to decrease the objectivity of the research and
weakens confidence in the findings. Equally undesirable is the all-too-frequent
practice of drawing conclusions from a study of a limited population and
applying them universally. Good researchers specify the conditions under
which their conclusions seem to be valid. Failure to do so justifiably weakens
confidence in the research.
7. Greater confidence in the research is warranted if the researcher is experienced, has a

good reputation in research, and is a person of integrity.
1.7. Problems Encountered by Researchers in Developing Countries

Researchers in less developed countries, particularly those engaged in empirical research,
are facing several problems. Some of the important problems are as follows:
1. The lack of a scientific training in the methodology of research is a great impediment
for researchers in our country.
2. There is insufficient interaction between the university research departments on one
side and business establishments, government departments and research
institutions on the other side.
3. Most of the business units in our country do not have the confidence that the material
supplied by them to researchers will not be misused and as such they are often
reluctant in supplying the needed information to researchers.
4. Research studies overlapping one another are undertaken quite often for want of
adequate information.
5. There does not exist a code of conduct for researchers and inter-university and
interdepartmental rivalries are also quite common.
6. Many researchers in our country also face the difficulty of adequate and timely
secretarial assistance, including computerial assistance.
7. Library management and functioning is not satisfactory at many places and much of
the time and energy researchers are spent in tracing out the books, journals, reports,
etc., rather than in tracing out relevant material from them.
8. There is also the problem that many of our libraries are not able to get copies of old
and new Acts/Rules, reports and other government publications in time.
9. There is also the difficulty of timely availability of published data from various
government and other agencies doing this job in our country.
10. There may, at times, take place the problem of conceptualization and also problems
relating to the process of data collection and related things.

CHAPTER II
FORMULATION OF RESEARCH PROBLEMS AND HYPOTHESES
2.1 Formulation of Research Problems in Business
The best social research starts from problems, which are also puzzles. A puzzle is not just a
lack of information, but a gap in our understanding. In large part of the skill of producing
worthwhile social research consists in correctly identifying puzzles.
Descriptive research simply answers the question: What is going on in? puzzle solving
research tries to contribute to our understanding of why events happen as they do rather
than simply accepting them at their face value. Then we might ask why patterns of
phenomenon changing are?
Choice of research topic is affected by many things, most of which have to do with interests
and values of the researcher, which are usually inter-related. Researches will also be
influenced by current events in the academic world. The choice of research topic is not
made in a vacuum but is influenced by the researchers and thereby the context in which the
research is to be made.
Research may start with the discovery of an opportunity to be exploited or a problem to be
tackled in order to facilitate business decision making. In business research, it is common
to start with problem discovery that should come before problem definition. At the out set of
the research process, the researcher may not have a clear statement of the problem. The
formulation of a problem is often more important than its solution (Albert Einstein) because
the subsequent research process and the solution are completely dependent on the
problem.
Once a problem is properly discovered, it should be well defined. A problem well defined is a
problem half solved (Dewy). Thus careful attention to problem definition allows the
researcher to set the proper research objectives. Problem definition is the indication of a
specific business decision area that would be classified by answering some research
questions. Problem definition is problem selected area of research. A problem definition
error or omission is likely to be a costly mistake that cannot be corrected in latter stages of
the process.
THE PROCESS OF PROBLEM DEFINITION

Just because a problem has been discovered or an opportunity has been recognized not
mean that the problem has been defined. A problem definition indicates a specific
managerial decision area that will be clarified by answering some research questions.
Defining a research problem involves the following interrelated steps.

1. Ascertain the decision maker's objectives.
2. Understand the background of the problem.
3. Isolate and identify the problem rather than its symptoms.
4. Determine the unit of analysis.
5. Determine the relevant variables.
6. State the research questions (hypotheses) and research objectives.
1. Ascertain the Decision Maker's Objective

Despite a popular misconception to the contrary, objectives are seldom clearly articulated
and given to the researcher. The decision maker seldom formulates his objectives
accurately. He is likely to state his objectives in the form of platitudes which have no
operational significance. Consequently, objectives usually have to be extracted by the
researcher. In so doing, the researcher may well be performing his most useful service to
the decision maker.

One effective technique for uncovering elusive research objectives consists of presenting
the manager with each possible solution to a problem and asking whether he or she would
follow that course of action. If the decision maker says "no," further questioning to determine
why the course of action is inappropriate usually will help formulate objectives. Often
exploratory research can illuminate the nature of the opportunity or problem and help
managers clarify their objectives and decisions.
2. Understanding the Background of the Problem
Although no textbook outline exists for identifying the business problem, the iceberg
principle illustrates that understanding the background of a problem is vital. In situations in
which the decision maker's objectives are clear, the problem may be diagnosed exclusively
by exercising managerial judgment. In other situations in which information about what has
happened previously is inadequate or if managers have trouble identifying the problem, a
situation analysis is the logical first step in defining the problem. A situation analysis
involves a preliminary investigation or informal gathering of background information to
familiarize researchers or managers with me decision area Gaining an awareness of
organizational or environmental conditions and an appreciation of the situation often re-
quires exploratory research. The exploratory research techniques can be important tools.
3. Isolating and Identifying the Problem, Not the Symptoms
Anticipating all of the dimensions of a problem is impossible for any researcher or executive.
For instance, a firm may have a problem with its advertising effectiveness. The possible
causes of this problem may be low brand awareness, the wrong brand image, use of the
wrong media, or perhaps too small a budget. Management's job is to isolate and identify the
most likely causes. Certain occurrences that appear to be "the problem" may be only
symptoms of a deeper problem. The illustration in the following page shows how symptoms
may cause confusion about the nature of the true problem.
Exhibit 2: Indicators of Symptoms and True Problems
Symptoms Can Be Confusing

Problem Definition
Organization Symptoms Based on
Symptoms
Demographic
20-year-old Membership has been True Problem
changes: Children
neighborhood declining for years; new in the
swimming water park with wave neighborhood
Neighborhood have grown up,
association in pool and water slides and older
moved into town a few residents prefer the residents no
a major city expensive water
years ago. park and have a longer swim at all.
Cellular negative image of Benefits program is
Women employees the swimming pool. not suited to
phone complain that salaries women's needs
are too low. Salaries need to be (e.g., maternity
Brewery compared to leave).
industry averages. Old-fashioned
Television Taste of brewery's Except for those close to

Consumers prefer taste product needs to be retirement, most
station of competitor's product. employees are not highly
reformulated
Few employees involved in detailed
change retirement plan pension-investment
after money market decisions; knowledge
Attributes of about plan is minimal.
annuity option money market
becomes available. annuity program
need to be
changed.

4. What is the unit of analysis?
The researcher must specify whether the level of investigation will focus on the collection of
data about organizations, departments, work groups, individuals or objects. The
researchers who think carefully and creatively about situations often discover that a problem
may be investigated at more than one level of analysis. Determining the unit of analysis
should not be overlooked during the problem definition stage of the research. It is the
crucial aspect of problem definition.
Researchers who think carefully and creatively about situations often discover that a
problem may be investigated at more than one level of anaiysis. Determining the unit of
analysis, although relatively straightforward in most projects, should not be overlooked dur-
ing the problem definition stage of the research. It is a crucial aspect of problem definition.
5. What are the Relevant Variables?

Another aspect of problem definition is identification of the key variables. The term variable
is an important one in research. A variable is defined as anything that varies or changes in
value. Because a variable represents a quality that can exhibit differences in value, usually
in magnitude or strength, it may be said that a variable generally is anything that may
assume different numerical or categorical values.
Key variables should be identified in the problem definition stage. In causal research the
terms dependent variable and independent variable are frequently encountered. A
dependent variable is a criterion or a variable that is to be predicted or explained. An
independent variable is a variable that is expected to influence the dependent variable. For
example, average hourly rate of pay may be a dependent variable that is influenced or can
be predicted by an independent variable such as number of years of experience!
6. State the research questions and research objectives.
Both managers and researchers expect problem solving efforts to result in statements of
research questions and objectives. At the end of the problem solving stage of the research
process researchers should prepare a written statement that clarifies any ambiguity about
what the hope the research will accomplish. Formulating a series of research questions and
hypothesis can add clarity to the statement of the business problem.
The inclusion of research questions makes it easier to understand what is perplexing to
managers and indicate the issues to be resolved. A research question is the researchers
translation of the business problem into a specific need for inquiry. The goal of defining the
problem is to state the research questions clearly and to have well formulated hypothesis.
The research objective is the researchers version of the business problem. Once the
research questions and/or hypotheses have been stated, the research project objectives are
derived from the problem definition. These objectives explain the purpose of the research in
measurable terms & define standards of what the research should accomplish. In addition
to stating the reasons for initiating the research project, outlining objectives helps to ensure
that the project will be manageable in size.
Research Objectives The research objective is the researcher's version of the business
problem. Once the research questions and/or hypotheses have been stated, the research
project objectives are derived from the problem definition. These objectives explain the
purpose of the research in measurable terms-and define standards of what the research
should accomplish. In addition to stating the reasons for initiating the research project,
outlining objectives helps to ensure that the project will be manageable in size. The figure
below illustrates how the business problem of a large organization-should the organization
offer outplacement services (e.g., severance pay) to discharged executives is translated

Do employees with ten
or more years of
into research objectives.
service have different
awareness levels, etc.
In some instances the business problems and the research objectives are the same. The
than employees with
objectives must, however, specify the information needed to make a decision. Identifying the
less than ten
information
y needed may require managers or researchers to be as specific as listing the
e
exact wording of the question in a surveyor explaining exactly what behavior might be
a
observed
r or recorded in an experiment. Statements about the required precision of the
information
s or the source of the information may be required to clearly communicate exactly
what information is needed. Many career decisions, for example, are made by both a hus-
band and wife. If this is the case, the husband-wife decision-making unit is the unit of
analysis. The objective of obtaining X information about research questions from this unit
should be specifically stated.
It is useful if the research objective is a managerial action standard. If the criterion to be
measured (e.g., absenteeism, sales, or attitude changes) turns out to be X, then manage-
ment will do A; if it is Y, then management will do B. This type of objective leaves no un-
certainty about the decision to be made once the research is finished. The number of
research objectives should be limited to a manageable quantity. The fewer the study
objectives, the easier it is to ensure that each will be addressed fully.
Therefore specific objectives influence the research design because they indicate the type
of information needed. Once the research is conducted, the results may show an
unanticipated aspect of the problem and may suggest that additional research is required to
satisfy the main objective.
Exhibit 3: Business Problem Translated into Research Objectives
Problem/Questions Research Research Objectives

Questions
Which of the services

should be offered?
Should the To determine managers' awareness

Are
Wouldmanagers
managersaware of in-house
prefer outplacement services?
personnel or using aided recall
organization offer
How concerned
outside are managers about out-
consultants? To measure managers' satisfaction
outplacement?
placement
How much services?
would each alternative cost? existing personnel policies
wit\'
How do managers evaluate the need for To obtain ratings and ran kings of the
severance pay? various outplacement services
New-employment assistance? To identify perceived benefits and
Should the services be
Personal counseling? perceived disadvantages of each
provided by in house
Job contacts? outplacement service
personnel or outside
What are the benefits of each outplacement
consultants?
service?
To measure managers' perceived
Severance pay? benefits and disadvantages of in-
New employment house Versus outside consultants
assistance? Personal To measure managers' preference of
counseling? alternatives if discharge occurred To
Job contacts? identify costs associated with each!
alternative
The number of research objectives should be limited to a manageable quantity.

To compare, using The fewer
cross-tabulations,~
the study objectives, the easier it is to ensure that each will be els
addressed
of awareness,fully.
evaluations, etc., m.
managers with ten or more years of
service with managers with less than
ten ye~ of service

CONDITIONS FOR EFFECTIVE FORMULATION OF RESEARCH PROBLEMS
1. Systematic immersion in the subject through first hand observation (information)
The researches must immerse herself thoroughly in the subject area within which she
wishes to solve a specific problem. No experience is more rewarding in terms of getting
a deep feel of the situation. For example, a research study on absenteeism may require
discussions with the employees themselves, their family background, their colleagues,
and their superiors. This may include observation & secondary data sources.
2. Study of relevant literature on the subject

The researcher must be well equipped to experience some difficulty or challenge. Literature
review enables the researcher to know if there are certain gaps in the theories or whether
the prevailing theories applicable to the problem are inconsistent with each other or whether
the finding of different studies do not follow a pattern consistent to the theoretical
expectations & so on.
2. Discussions with persons with practical experience in the field of study:
experience
survey
It is also important to consult people with adequate experience on the subject of the study
2.2 Formulation of Research Hypotheses in Business

Once the problem to be answered in the course of research is finally instituted, the
researcher may proceed to formulate tentative solutions or answers to it. These set of
proposed solutions or explanations, which the researcher is obliged to test on the
bases of already known facts are collectively termed as hypothesis. Collection of
facts merely for the sake of collecting them would yield no fruits. To be fruitful the
researcher should collect such facts as are for or against some point of view or
proposition. Simply stated, a hypothesis helps the researcher to see and appreciate:
 The kind of data that need to be collected in order to answer the research
question.
 The way in which they should be organized and classified most efficiently and
meaningfully.
A hypothesis provides basic guide/direction/ frame work to be researcher. It is a tentative

solution/proposition/explanation.
Research hypothesis may refer to an unproven proposition or supposition that tentatively
explains certain facts; phenomena; a proposition that is empirically testable. Research
questions are guides to the formulation of a research hypothesis. The goal of defining the
problem is to state research questions clearly and to have well formulated hypothesis that
again add clarity to the statement of the business problem. Hypotheses are statements that
can be empirically tested. Problem statements & hypothesis are similar because both state
relationships. But problem statements phrased as questions are interrogative and
hypothesis are declarative. Besides hypothesis are usually more specific than problem
statements; they are usually nearer to the actual research operations and testing.
In social science, particularly business, the hypothesis formulation may be replaced by
research questions and objectives. It is also possible to use research objective
simultaneously with the research hypothesis. Research question is the researchers
translation of the problem into specific need for inquiry. On the other hand a research
objective is the purpose of the research in measurable terms; the definition of what the
research should accomplish.
Source of Hypothesis
Hypothesis may be developed from a variety of sources, including the following.

1. Hypothesis originates in the science itself or in the scientist
The history of science provides an eloquent testimony to the fact that personal and
idiosyncratic experiences of the scientist contribute a great deal to the type and form of
questions one may ask, as also the kinds of tentative answers to this question (hypothesis)
that he/she might provide. Here the kinds of a persons perception and conception would
play a major role. Researchers should think differently and carefully.
2. Analogies are often a fountainhead of valuable hypothesis. This involves comparisons
or analogies between social and natural systems.
3. Hypothesis may rest also on the findings of other studies- in social science research
is usually exploratory. i.e They start with explicit hypothesis
4. A hypothesis may stem from a body of theory, which may afford by way of logical
deduction, the prediction that if certain conditions are present certain results would follow.
5. It is worthy of note that value orientation of the culture in which a science develops may
furnish many of its basic hypotheses.
To conclude the ideal source of fruitful and relevant hypothesis is a fusion of past
experience and imagination of the researcher.
Characteristics of a Useable Hypothesis
A fruitful hypothesis is distinguished by the following characteristics:
1. A hypothesis should be empirically testable- its concepts must have clear empirical
correspondence and should be explicitly defined in a way it can be proved or
disproved .e.g Bad parents beget bad children. Bad cannot be explicitly defined.
2. The hypothesis should be conceptually clear- the concepts should be clearly defined,
operationally if possible, and the definitions should be commonly accepted and
communicable rather than the production of the researcher himself. An ambiguous
hypothesis characterized by undefined or ill deigned concepts cannot be tested.
3. The hypothesis should be closest to things observable- It should provide conditions for
comparison with empirical facts.
4. The hypothesis must be specific- It should be concrete and objective and predictable
rather than subjective.
5. The hypothesis should be related to a body of a theory or some theoretical orientation.
The theoretical gains of testing the hypothesis should be justified so that the research
outcome will help to qualify, support, correct or refute a theory. Moreover the function of
research may be elaborating, extending and improving a theory.
6. The hypothesis should be related to the available techniques its research ability may be
determined by available analytical techniques and the hypothesis should be formulated
after duly considering the methods and techniques of researches.

Exploratory
Research Descriptive Research Causal Research
(Ambiguous (Aware of Problem) (Clearly Defined
Problem) Problem)
"Which of two training

Possible Situation "Absenteeism is in- "What kind of programs is more effective?"
creasing and we people favor
don't know why." trade?
protectionism?"
"Would people be "Can I predict the value
interested in our of energy stocks if I
"Did last year's
new product idea?" know the current divi-
product recall have
an impact on our dends and growth rates
company's stock of dividends?"
price?"
"Has the average
merger rate for
savings and loans
"What task increased in the
conditions influence past decade?" "Will buyers purchase
the leadership more of our product in a
process in our new package?"
organization?"
Exhibit 4: Types of Research in Business

CHAPTER III
RESEARCH DESIGN
3.1.1. Decision Making in Planning Research Strategies and Tactics

Formally defined, decision making is the process of resolving a problem or choosing among
alternative opportunities. The key to decision making is to recognize the nature the
problem/opportunity, to identify how much information is available, and to recognize what
information is needed. Every business problem or decision-making situation can be
classified on a continuum ranging from complete certainty to absolute ambiguity.
Certainty
Complete certainty means that the decision maker has all the information that he or she
needs. The decision maker knows the exact nature of the business problem or opportunity.
Uncertainty
Uncertainty means that managers grasp the general nature of the objectives they wish to
achieve, but the information about alternatives is incomplete. Predictions about the forces
that will shape future events are educated guesses. Under conditions of uncertainty, effec-
tive managers recognize potential value in spending additional time gathering information to
clarify the nature of the decision.
Ambiguity
Ambiguity means that the nature of the problem to be solved is unclear. The objectives are
vague and the alternatives are difficult to define. This is by far the most difficult decision
situation.
Business managers face a variety of decision-making situations. Under conditions of
complete certainty when future outcomes are predictable, business research may be a
waste of time. However, under conditions of uncertainty or ambiguity, business research
becomes more attractive to the decision maker.
3.2. Important Concepts Relating to Research Design

Before describing the different research designs, it will be appropriate to explain the various
concepts relating to designs so that these may be better and easily understood.
1. Dependent and independent variables: A concept which can take on different

quantitative values is called a variable. As such the concepts like weight, height,
income are all examples of variables. Qualitative phenomena (or the attributes) are
also quantified on the basis of the presence or absence of the concerning
attribute(s). Phenomena which can take on quantitatively different values even in
decimal points are called continuous variables. But all variables are not continuous.
If the can only be expressed in integer values, they are non-continuous variables or
in statistical language discrete variables.
2. Extraneous variable: Independent variables that are not related to the purpose of
the study, but may affect the dependent variable are termed as extraneous variables.
3. Control: One important characteristic of a good research design it to minimize the
influence or effect of extraneous variables(s). The technical term control is used
when we design the study minimizing the effects of extraneous independent
variables. In experimental researches, the term control is used to refer to restrain
experimental conditions.

4. Confounded relationship: When the dependent variable is not free from the
influence of extraneous variable(s), the relationship between the dependent and
independent variables is said to be confounded by an extraneous variable(s).
5. Experimental and non-experimental hypothesis-testing research: When the
purpose of research is to test a research hypothesis, it is termed as hypothesis-
testing research. It can be of the experimental design or of the non-experimental
design. Research in which the independent variable is manipulated is termed
experimental hypothesis-testing research and a research in which an independent
variable is not manipulated is called non-experimental hypothesis-testing research.
6. Experimental and control groups: In an experimental hypothesis-testing research
when a group is exposed to usual conditions, it is termed a control group. But when
the group is exposed to some novel or special condition, it is termed an
experimental group. It is possible to design studies which include only experimental
groups or studies which include both experimental and control groups.
6. Causation and Correlation
Causation refers to the relationship between two or more variables. The variables
are different and they are dependent and independent. The dependent variable is
the outcome, the variable being affected by the independent variable. The
independent variable is the cause that brings about a change in dependent variable.
Causation involves the direction and/or the magnitude of change that the
independent variable causes on the dependent variable.
Correlation refers to the regular relationship between the dependent and the
independent variables. Correlation, however, does not necessarily show cause and
effect relationship between two sets of variables or occurrences. Two or more variables
may be correlated directly or indirectly. However, the correlation does not show any
causal relationship.
Finding out whether a correlation between variables has causal relationships involves using
controls, which means holding some variables constant in order to look at the effect of one
independent variable on the others. When we use experimentation in social science,
including business, there are two groups; control group and experimental groups.
Experimental groups are those on which the intervening variables are applied. The control
groups are held, as they are with out applying the intervening variable. The degree of
change or effect that may be observed on the experimental group is likely to be caused by
the independent variable.
The control group is held as it is; free from intervention, and the other group is the
experimental group, on which the application of the intervening variable is made. So,
measurement is made on both groups before application and after application of the
independent variable(s). If the measurement result before application is assumed to be
similar, the difference in the second measurement after the application of the variable(s) is
likely to be attributed to the independent variable(s). Therefore, the net difference is the
change manipulated by the independent variables and the common difference in
measurement is likely to be caused by other variables.
8. Validity: refers to the problem of whether the data collected is the true picture
of what is being studied. It is an evidence of what claims to be evidence. The problem
arises particularly when the data collected seems to be a product of the research
method used rather than of what is being studied.

9. Representativeness: refers to the question of whether the characteristics of a
sample drawn properly represents the characteristics of the population from which the
sample is selected and about which a conclusion is to be made. This implies careful
planning of the sampling design so that parameter and statistic are similar.
10. Reliability: refers to the dependability of the research findings that they can be repeated
either by the researcher or by other researchers using similar research methods or
procedures.
3.3. Research Design Classifications
WHAT IS RESEARCH DESIGN?

Many definitions of research design" have been advanced, but no one definition imparts the
full range of important aspects. Several examples from leading authors can be cited:
The research design constitutes the blueprint for the collection, measurement, and analysis
of data. It aids 'the scientist in the allocation of his limited resources by posing crucial
choices: Is the blueprint to include experiments, interviews, observation, and the analysis of
records, simulation, or some combination of these? Are the methods of data collection and
the research situation to be highly structured? Is an intensive study of a small sample more
effective than a less intensive study of a large sample? Should the analysis be primarily
quantitative or qualitative?
Research design is the plan and structure of investigation so conceived as to obtain
answers to research questions. The plan is the overall scheme or program of the research.
It includes an outline of what the Investigator will do from writing hypotheses and their
operational implications to the 'final analysis of data. A structure is the framework,
organization, or configuration of . . . the relations among variables of a study. A research
design expresses both the structure of the research problem and the plan of investigation
used to obtain empirical evidence on relations of the problem."
These definitions differ in detail, but together they give the essentials of a good research
design. First, the design is a plan for selecting the sources and types of information relevant
to the research question. Second, it is a framework for specifying the relationships among
the study's variables. Third, it is a blueprint for outlining all of the procedures from the
hypotheses to the analysis of data. The design provides for answers to such questions as:
What techniques will be used to gather data? What kind of sampling will be used? How will
time and cost constraints be dealt with?
CLASSIFICATION OF RESEARCH DESIGNS

Early in any research study, one faces the 'task of selecting the specific design to use.
There are a number of different design approaches, but unfortunately, there is no simple
classification system that defines all the variations that must be considered. Research de-
sign is a complex concept that may be viewed from at least eight different perspectives.
1. The degree to which the research problem has been crystallized (the study may be
either exploratory or formal).
2. The method of data collection (studies may be observational or survey).
3. The power of the researcher to affect the variables under study (the two major types
of research are the experimental and the ex-post facto).
4. The purpose of the study (research studies may be descriptive or causal).
5. The time dimension (research may be cross-sectional or longitudinal).
6. The topical scope-breadth and depth-of the study (a case or statistical study).
7. The research environment (most business research is conducted in a field setting,
although laboratory research is not unusual; simulation is another category).

8. The subjects' perceptions of the research (do they perceive deviations from their
everyday routines).
A brief discussion of these perspectives illustrates their nature and contribution to research.
Degree of Problem Crystallization

A study may be viewed as exploratory or formal. The essence of the distinction between
these two is the degree of structure and the immediate objective of the study. Exploratory
studies tend to be loosely structured with an objective of learning what the major research
tasks are to be. In fact, the immediate purpose of exploration is usually to develop
hypotheses or questions for further research. The formal study begins where the exploration
leaves off-it begins with a hypothesis or question and involves precise procedures and data
source specifications. The goal of a formal research design is to test the hypotheses or
answer the research questions posed.
Method of Data Collection

This classification distinguishes between monitoring and interrogation processes. The
former includes observational studies, in which the researcher inspects the activities of a
subject or the nature of some material without attempting to elicit responses from anyone.
A traffic count at an intersection, a search of the library collection, observation of the actions
of a group of decision makers-all is examples of monitoring. In each case the researcher
notes and records the information available from observations.
Researcher Control of Variables

In terms of the researcher's ability to manipulate variables, we differentiate between
experimental and ex post facto designs. In an experiment, the researcher attempts to control
and/or manipulate the variables in the study. It is enough that we can cause variables to be
changed or held constant in keeping with our research objectives. Experimental design is
appropriate when one wishes to determine whether certain variables affect other variables in
some way. Experimentation provides the most powerful support possible for a hypothesis of
causation.
With an ex post facto design, investigators have no control over the variables in the sense of
being able to manipulate them. They can only report what has happened or what is
happening. In fact, it is important in this design that the researchers not influence the vari-
ables; to do so is to introduce bias. The researcher is limited to holding factors constant by
judicious selection of subjects according to strict sampling procedures and by statistical
manipulation of findings.
The Purpose of the Study.

The essential difference between descriptive and causal studies lies in their objectives. If
the research is concerned with finding out who, what, where, when, or how much, then the
study is descriptive. If it is concerned with learning why, that is, how one variable affects
another, it is causal.
The Time Dimension.

Cross-sectional studies are carried out once and represent a "snapshot" of one point in time;
others are repeated over an extended period of time. The latter have come to be known as
longitudinal studies. The advantage of a longitudinal study is that it can track changes that
occur over time. Indeed, many research questions may be answered only after extended
observation.
In longitudinal studies of the panel variety, the researcher may study the same people over
a period of time. In marketing, panels are set up to report consumption data on a variety of

products. These data, collected from national samples, provide a major data bank on
relative market share, consumer response to new products, new promotional methods, and
the like. Other longitudinal studies, such as cohort groups, use different subjects for each
sequenced measurement.
Some types of information once collected cannot be collected a second time from the same
person without the risks of bias. For example, the study of public awareness of an
advertising campaign over a six-month period would require different samples for each mea-
surement.
While longitudinal research is important, the constraints of budget and time impose the need
for cross-sectional analysis. Using this design, some of the benefits of a longitudinal study
can be assured by adroit questioning about past attitudes, history, and future expectations.
The Topical Scope.

The statistical study differs from the case study in several ways. Statistical studies are
designed for breadth rather than depth. They attempt to capture adequately the
characteristics of a population by making inferences from a sample of items. Hypotheses
are tested quantitatively rather than qualitatively. Generalizations about findings are
presented based on the representativeness of the sample and the validity characteristics of
the design.
Case studies place more emphasis on a full contextual analysis of .a limited number of
events or conditions and their interrelations. Although hypotheses are often used, the
reliance on qualitative data makes support or rejection more difficult. An emphasis on detail
provides valuable insight for problem solving, evaluation, and strategy. This detail is secured
from multiple sources of information which permit the verification of evidence and avoidance
of missing data.
The Research Environment.

Designs also differ as to whether they take place under actual environmental conditions or
under other conditions. These are called field and laboratory studies, respectively. The main
distinction hinges on whether the study is of subjects under normal conditions for the
problem being studied.
To simulate is to replicate the essence of a system or process. Simulations are being used
more and more in research, especially in operations research.
The major characteristics of various conditions and relationships in actual situations are
often represented in mathematical models. Role playing and other behavioral activities may
also be viewed as simulations.
Subjects' Perceptions.
The usefulness of a design may be affected when people in the study perceive that research
is being conducted. Subjects can influence the outcomes of the research in subtle ways or
more dramatically as we learned from the Western Electric Studies of the late 1920s.
Although there is no widespread evidence of attempts to please researchers through
successful hypothesis guessing or evidence of the prevalence of sabotage, when subjects
believe that something out of the ordinary is happening, they may behave less naturally. The
implications of this phenomenon prompted one researcher to propose the following
classifications:
1. Subjects perceive no deviations from everyday routines.
2. Subjects perceive deviations, but as unrelated to the researcher. Subjects perceive

deviations as researcher induced.
In all research environments and control situations, researchers need to be vigilant to effects
that may alter their conclusions.
3.4. Decision Alternatives in the Research Process

I. PROBLEM DISCOVERY AND DEFINITION
In the figure above the research process begins with problem discovery, and identifying the
problem is the first step toward its solution. The word problem, in general usage, suggests
something has gone wrong. Unfortunately, the term problem does not connote a business
opportunity, such as expanding operations into a foreign country, nor does it connote the
need for evaluation of an existing program, such as employee satisfaction with professional
development programs. Actually, the research task may be to clarify a problem, to evaluate
a program, or to define an opportunity, and problem discovery and definition will be used in
this broader context. It should be noted that the initial stage is problem discovery, rather
than definition. (The researcher may not have a clear-cut statement of the problem at the
outset of the research process.) Often, only symptoms are apparent to begin with. Profits
may be declining, but management may not know the exact nature of the problem. Thus
the problem statement is often made only in general terms. What is to be investigated is
not yet specifically identified.
Too often managers concentrate on finding the right answer rather than asking the right
question. Many do not realize that defining a problem may be more difficult than solving it.
In business research, if the data are collected before the nature of the business problem is
carefully thought out, the data probably will not help solve the problem.
A Problem Well Defined

The adage "a problem well defined is a problem half solved" is worth remembering. This
adage emphasizes that an orderly definition of the research problem gives a sense of direc-
tion to the investigation. Careful attention to problem definition allows the researcher to set
the proper research objectives. If the purpose of the research is clear, the chances of col-
lecting the necessary and relevant information-without collecting surplus information will be
much greater.
Although the problem definition stage of the research process is probably the most im-
portant stage, it is frequently a neglected area of research. Too often it is forgotten that the
best place to begin a research project is at the end. Knowing what is to be accomplished
determines the research process. A problem definition error or omission is likely to be a
costly mist that cannot be corrected in later stages of the process.
Exploratory Research
Many research projects with clearly defined research problems; Such as an annual survey
of industry compensation, do not require exploratory research. There are, however, many'
research studies that would have inadequate problem definitions if exploratory research
were not conducted.
Exploratory research is usually conducted during the initial stage of the research process.
The preliminary activities undertaken to refine the problem into a researchable one need not
be formal or precise. The purpose of the exploratory research process is a progressive
narrowing of the scope of the research topic and a transformation of the discovered
problems into defined ones, incorporating specific research objectives. By analyzing any
existing studies on the subject, by talking with knowledgeable individuals, and by informally
investigating the situation, the researchers can progressively sharpen the concepts. After
such exploration the researchers should know exactly what data to collect during the formal
project and how the project will be conducted. The business has four basic categories of
techniques for obtaining insights and gaining a clearer idea of a problem: secondary data
analysis, pilot studies, case studies, and experience surveys.
Secondary Data
Secondary, or historical, data are data previously collected and assembled for some project
other than the one at hand. Primary data are data gathered and assembled specifically for

the project at hand. Secondary information can often be found inside the company, in the
library, on the Internet, or it can be purchased from firms that specialize in providing
information, such as economic forecasts, that is useful to organizations. The researcher who
assembles data from the Census of Population or the Survey of Current Business is using
secondary sources.
A literature research study or a literature survey of published articles and books discussing
theories and past empirical studies about a topic is almost universal in academic research
projects. It is also common in many applied research studies. Students who have written
term papers should be familiar with the process of checking card catalogs, indexes to
published literature, and other library resources to establish a bibliography portraying past
research.
Secondary data can almost always be gathered faster and at a lower cost than primary data.
However, secondary data may be outdated or may not exactly meet the needs of the
researcher because they were collected for another purpose. Nevertheless, secondary
sources often prove to be of great value in exploratory research. Investigating such sources
has saved many a researcher from "reinventing the wheel" in primary data collection.
Pilot Studies
Pilot studies collect data from the ultimate subject of the research project to serve as a
guide for the larger study. When the term pilot study is used in the context of exploratory
research, the data collection methods are informal and the findings may lack precision be-
cause rigorous standards are relaxed.
Focus Group Discussion or the focus group interview is a more elaborate exploratory pilot
study. Increasingly popular in recent years, the focus group gathers six to ten people for a
group dynamics session. This loosely structured discussion assumes that individuals are
more willing to share their ideas as they share in the ideas of others. Qualitative information
obtained in these studies serves as a basis for subsequent quantitative study.
Case Study
Case study method is an exploratory research technique that intensively investigates one or
a few situations similar to the researchers problem situation. The purpose of case study
method is to obtain information from one or a few situations that are similar to the
researchers problem.
Experience Survey
Experience survey is an exploratory research technique in which individuals who are
knowledgeable about a particular research problem are surveyed.
Secondary data analysis is a preliminary review of data collected for another purpose to
clarify issues in the early stages of a research effort.
Four basic types of exploratory research have been identified, but there is no standard
design for such research. Since the purposes of exploratory research are to gain insights
and to discover new ideas, researchers may use considerable creativity and flexibility. It is
common to collect data with several exploratory techniques
II. STATEMENT OF RESEARCH OBJECTIVES

A decision must initially be made. as to precisely what should be researched. After identi-
fying and clarifying the problem, with or without exploratory research, the researchers
should make a formal statement of the problem and the research objectives. This delineates
the type of information that should be collected and provides a framework for the scope of
the study or the research project.

The answers to questions such as "To what extent did the new compensation program
achieve its objectives? are typical research objectives. In this sense the statement of the
problem is a research question. The best expression of a research objective is a well-
formed, testable research hypothesis, and a hypothesis is a statement that can be refuted or
supported by empirical data.
III. PLANNING THE RESEARCH DESIGN

After the researcher has formulated the research problem, the research design must be
developed. A research design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information. It is a framework of the research plan of
action. The objectives of the study determined during the early stages of the research are
included in the design to ensure that the information collected is appropriate for solving the
problem. The research investigator must also determine the sources of information, the
design technique (surveyor experiment, for example, the sampling methodology, and the
schedule and cost of the research.
IV. SELECTING THE APPROPRIATE RESEARCH DESIGN

Again, the researcher must make a decision. There are four basic design techniques- for
descriptive and causal research; surveys, experiments, secondary data, and observation.
The objectives of the study, the available data sources, the urgency of the decision, and the
cost of obtaining the data will determine which design technique is chosen. The manageri31
aspects of selecting the research design will be considered later.
Surveys
The most common method of generating primary data is through surveys. Most people have
seen the results of political surveys .by Gallup or Harris, and some have been respondents
(members of a sample that supply answers) to business research questionnaires. A, survey
is a research technique in which information is gathered from a sample of people by' use of
a questionnaire. The task of writing a questionnaire, determining the list of questions, and
designing the exact format of the printed or written questionnaire is an essential aspect of
the development of a survey research design.
Research investigators may choose to contact respondents by telephone, by mail, or in,
person. An advertiser who spends over Birr 100,000 for one minute of commercial time
during the world soccer may telephone people to quickly gather information concerning their
response to the advertising. A forklift truck manufacturer, trying to determine why sales in
the wholesale grocery industry are low, might choose a mail questionnaire because the
appropriate executives are hard to reach by telephone. A computer manufacturer, wishing to
conduct an organizational survey among employees, might determine the need for a
versatile survey method whereby an interviewer can ask a variety of personal questions in a
flexible format. Although personal interviews are expensive, they are valuable because
investigators can utilize visual aids and supplement the interview with personal
observations. Each of these survey methods has advantages and disadvantages. The
researcher's task is to find the most appropriate way to collect the information needed.
Experiments
Business experiments hold the greatest potential for establishing cause-and-effect relation-
ships. The use of experimentation allows investigation of changes in one variable, such as
productivity, while manipulating one or two other variables, perhaps social rewards or mon-
etary rewards, under controlled conditions. Ideally, experimental control provides a basis for
isolating causal factors because outside (or exogenous) influences do not come into play.
Test marketing is a frequent form of business experimentation. An experiment controls

conditions so that one or more variables can be manipulated in order to test a hypothesis. In
the Chelsea situation there was a trial of a proposed course of action and observation of the
effect on sales. 1'his case illustrates that extraneous variables are difficult to control and can
influence results. It also portrays a field experiment where a
Secondary Data
As in exploratory research, descriptive and causal studies also use previously collected
data. Although the terms secondary and historical are, interchangeable, secondary data will
be used here. An example of a secondary data study is the development of a mathematical
model to predict sales on the basis of past sales or on the basis of a correlation with related
variables. Manufacturers of digital cameras may find that sales to households are highly
correlated with discretionary personal income. To predict future market potential, data
concerning projections of disposable personal income may be acquired from the gov-
ernment or from a university. This information can be mathematically manipulated to fore-
cast sales. Formal secondary data studies have benefits and limitations similar to
exploratory studies that use secondary data. Also, the analysis of secondary data studies
generally requires a greater quantitative sophistication.
Observation Techniques
In many situations the objective of the research project is merely to record what can be ob-
served-for example, the number of automobiles that pass a site for a proposed gasoline
station. This can be mechanically recorded or observed by any person. The amount of time
it takes an employee to perform a task may be observed in a time-and-motion study. Re-
search personnel, known as "mystery shoppers," may act as customers to observe the
actions of sales personnel or do "comparative shopping" to learn the prices charged at
competitive outlets.
The main advantage of the observation technique is that it records behavior without relying
on reports from respondents. Observational methods are often non reactive because data,
are collected unobtrusively and passively without a respondent's direct participation.
Observation is more complex than mere "nose counting," and the task is more difficult to
administer than the inexperienced researcher would imagine. Several things of interest
simply cannot be observed. Attitudes, opinions, motivations, and other intangible states of
mind cannot be recorded by using the observation method.
Evaluating Research Designs

Researchers argue that there is no one best research design for all situations. There are no
hard-and-fast rules for good business research. This does not mean that the researcher
when faced with a problem is also faced with chaos and confusion. It means that the
researcher has many alternative methods for solving the problem. An eminent
behavioral)researcher has stated this concept quite eloquently:
There is never a single, standard, correct method of carrying out a piece of research.
Do not wait to start your research until you find out the proper approach, because
there are many ways to tackle a problem-some good, some bad, but probably
several good ways. There is no single perfect design. A research method for a given
problem is not like the solution to a problem in algebra. It is more like a recipe for
beef Stroganoff; there is no one best recipe.
Knowing how to select the most appropriate research design develops with experience.
Inexperienced researchers often jump to the conclusion that the survey method is the best
design, because they are most familiar with this method. Sometimes instead of using an
expensive survey, a creative researcher, familiar with other research designs may suggest a
far less expensive alternative-an unobtrusive observation technique. Once an appropriate

design has been determined, the researcher moves on to the next stage-planning the
sample to be used.
V. SAMPMLING
Although the sampling plan is included in the research design, the actual sampling is a
separate stage of the research process. Sampling involves any procedure that uses a small
number of items or that uses part of the population to make a conclusion regarding the
whole population. Sample is a subset from the large population. In sampling the first
question is who is to be sampled? The answer to this primary question requires the
identification of target population. Deciding the population and determining the sampling
units may not be obvious.
The next sampling issue concerns sample size. How big should the sample be? Although
management may wish to examine every potential buyer of a product, every employee, or
every stock traded on an exchange, it is unnecessary (as well as unrealistic) to do so. Typi-
cally, large samples are more precise than small samples, but if proper probability sampling
is implemented, a small proportion of the total population will give a reliable measure of the
whole.
The final sampling decision requires the researcher to choose how the sampling units are to
be selected. Students who have taken their first statistics course generally are familiar with
simple random sampling, where every unit in the population has an equal and known
chance of being selected. However, this is only one type of sampling. For example, a cluster
sampling procedure may be selected because it may reduce costs and make the data-
gathering procedures more efficient. If members of the population are found in close
geographic clusters, a sampling procedure that selects area clusters rather than individual
units in the population will reduce costs. In other words, rather than selecting 1,000
individuals throughout a country, it may be more economical to select 25 towns and then
sample within those towns. This substantially reduces travel, hiring, and training costs. In
determining the appropriate sample plan, the researcher will have to select the most
appropriate sampling procedure to meet established study objectives.
There are two basic sampling techniques: probability and non-probability sampling. A
probability sample is defined as a sample in which every member of the population has a
known, nonzero probability of selection. If sample units are selected on the basis of personal
judgment (e.g., a test plant is selected because it appears to be typical), the sample method
is a non-probability sample. In actuality, the sampling decision is not a simple choice
between two methods. Simple random samples, stratified samples, quota samples, cluster
samples, and judgmental samples are some of the many types of samples that may be
drawn.
VII. DATA COLLECTION

Once the research design (including the sampling plan) has been formalized, the process of
gathering information from respondents may begin. Obviously, because there are many
research techniques, there are many methods of data collection. When the survey method is
utilized, some form of direct participation by the respondent is necessary during the process.
The respondent may participate by filling out a questionnaire or by interacting with an
interviewer. If an unobtrusive method of data collection is utilized, the subjects do not
actively participate.
For instance, a simple count of taxi drivers driving in a city is one kind of data collection.
However the data are collected, it is important to minimize errors in the data collection
process. For example, it is important that the data collection be consistent in all geographic
areas. If an interviewer phrases questions incorrectly or records a respondent's statements
inaccurately (not verbatim), this will cause major data collection errors. Often there are two

phases to the process of collecting data: pretesting and the main study.
A pretesting phase, using a small subs ample, may determine whether the data collection
plan for the main study is an appropriate procedure. Thus a small-scale pretest study
provides an advance opportunity for the investigator to check the data collection form to
minimize errors due to improper design elements, such as question wording or sequence.
Additional benefits are discovery of confusing interviewing instructions, learning if the
questionnaire is too long or too short, and uncovering other such field errors. Tabulation of
data from the pretests provides the researcher with a format of the knowledge that may be
gained from the actual study. If the tabulation of the data and statistical tests do not answer
the researcher's questions, this may lead the investigator to redesign the study.
VII. DATA PROCESSING AND DATA ANALYSIS

Editing and Coding
Once the fieldwork has been completed, the data must be converted into a format that
answers the decision maker's questions. Data processing generally begins with the editing
and coding of the data. Editing involves checking the data collection forms for omission
legibility, and consistency in classification. The editing process corrects problems like
interviewer errors (e.g., an answer recorded on the wrong portion of a questionnaire) before
the data are transferred to a computer or readied for tabulation.
Before data can be tabulated, meaningful categories and character symbols must be
established for groups of responses. The rules for interpreting, categorizing, and recording
the data are called codes. This coding process facilitates computer or hand tabulation of
course, if computer analysis is to be utilized; the data are entered into the computer and
verified.
Analysis
Analysis is the application of reasoning to understand and interpret the data that have been
collected about a subject. In simple description, analysis may involve determining consistent
patterns and summarizing the appropriate details revealed in the investigation. The
appropriate analytical technique for data analysis will be determined by management,
information requirements, the characteristics of the research design, and the nature of the
data collected.
Statistical analysis may range from portraying a simple frequency distribution to very
complex multivariate analysis, such as multiple regression. There are three general
categories of statistical analysis: univariate analysis, bivariate analysis, and multivariate
analysis.
VIII. CONCLUSIONS AND REPORT PREPARATION

As mentioned earlier, most business research is applied research. Hence the purpose of the
research is to make a business decision. An important but often overlooked aspect of the
researcher's job is to look at the analysis of the collected information and ask, "What does
this mean to management?" The final stage in the research process is to interpret the
information and make conclusions for managerial decisions. Recommendations are often a
part of this process.
The research report should communicate the research findings effectively. All too often the
report is a complicated statement of the study's technical aspects and sophisticated
research methods. Often, management is not interested in detailed reporting of the research
design aid statistical findings but wishes only a summary of the findings. It cannot be
overemphasized that if the findings of the research remain unread on the manager's desk,

the study is useless Research is only as good as the applications made of it. Business
researchers must communicate their findings to a managerial audience. The manager's
information needs will determine: individuals are generally dictated by the norms of society.
Societal norms are codes of behavior adopted by a group; they suggest what a member of a
group ought to do under given circumstances.
Steps in Sampling Design

While developing a sampling design, the research must pay attention to the following points:
i). Type of universe: The first step in developing any sample design is to clearly define
the set of objects, technically called the Universe, to be studied. The universe can be
finite or infinite. In finite universe the number of items is certain, but in case of an
infinite universe the number of items is infinite, i.e., we cannot have any idea about
the total number of items. The population of a city, the number of workers in a factory
and the like are examples of finite universes, whereas the number of stars in the sky,
listeners of a specific radio programme, throwing of a dice etc. are examples of
infinite universes.
ii). sampling unit: A decision has to be taken concerning a sampling unit before
selecting sample. Sampling unit may be a geographical one such as state, district,
village, etc., or a construction unit such as house, flat, etc., or it may be a social unit
such as family, club, school, etc., or it may be an individual. The researcher will have
to decide one or more of such units that he has to select for his study.
iii). Source list: It is also known as sampling frame from which sample is to be drawn.
It contains the names of all items of a universe (in case of finite universe only). If
source list is not available, researcher has to prepare it. Such a list should be
comprehensive, correct, reliable and appropriate. It is extremely important for the
source list to be as representative of the population as possible.
iv) Size of sample: This refers to the number of items to be selected from the universe
to constitute a sample. This a major problem before a researcher. The size of sample
should neither be excessively large, nor too small. It should be optimum. An optimum
sample is one which fulfills the requirements of efficiency, representativeness,
reliability and flexibility.
While deciding the size of sample, researcher must determine the desired precision
as also an acceptable confidence level for the estimate. The size of population
variance needs to be considered as in case of larger variance usually a bigger
sample is needed. The size of population must be kept in view for this also limits the
sample size. The parameters of interest in a research study must be kept in view,
while deciding the size of the sample. Costs too dictate the size of sample that we
can draw. As such, budgetary constraint must invariably be taken into consideration
when we decide the sample size.
v) Parameters of interest: In determining the sample design, one must consider the
question of the specific population parameters, which are of interest. For instance,
we may be interested in estimating the proportion of persons with some
characteristic in the population, or we may be interested in knowing some average or
the other measure concerning the population. There may also be important sub-
groups in the population about whom we would like to make estimates. All this has a
strong impact upon the sample design we would accept.
vi) Budgetary constraint: Cost considerations, from practical point of view, have a
major impact upon decisions relating to not only the size of the sample but also to
the type of sample. This fact can even lead to the use of a non-probability sample.
vii) Sampling procedure: Finally, the researcher must decide the type of sample he will
use i.e., he must decide about the technique to be used in selecting the items fro the
sample. In fact this technique or procedure stands for the sample design itself. There
are several sample designs out of which the researcher must choose one for his

study. Obviously he must select that design which for a given sample size and for a
given cost has a smaller sampling error.
3.5. Research Proposal

Once research problems are defined and fruitful research hypotheses are formulated, the
researcher should plan his/her research design. The research questions and objectives
delineate the type of information to be collected and provide a framework for the scope of
the study of the research project.
A research project is a specific research investigation; a study that completes or is planned

to follow the stages in the research process (Zikmund, 2000). A research project is basically
part of a research program, which is an ongoing series of research projects designed to
supply an organizations continuing information needs.
A research design may be defined as a master plan specifying the methods and procedures
for collecting and analyzing needed information (Zikmund, 2000). It is the framework of the
research plan of action. The objectives of the study that are determined at the earlier stage
of the research process are included in the research design. The research design is often
incorporated in a research proposal.
A research proposal is a written statement of the research design that includes a statement
explaining the purpose of the study and a detailed, systematic outline of a particular
research methodology (Zikmund, 2000). A research proposal is often incorporated into the
research program of an organization. A research program is an overall plan of an
organization to utilize business research. It is an ongoing series of research projects
designed to supply an organizations continuing information needs.
According to Emory (2000), the purpose of a research proposal is:

 To present the problem to be researched and its importance
 To discuss the research efforts of others who have worked on related problems.
 To set forth the data necessary for solving the problem
 To suggest how the data will be gathered, treated and interpreted
A proposal tells us:

What will be done
Why it will be done
How it will be done
Where it will be done
To whom it will be done, and
What is the benefit of doing it?
Research proposal is valuable to both the researcher and the sponsor. The specific values
of proposals to both clients and researchers are described below.
Value to the sponsor

A research proposal allows the sponsor to assess the sincerity of your purpose, the clarity of
your design, the extent of your background material, and your fitness for undertaking the
project. The proposal demonstrates your discipline, organization and logic. A poorly
planned, poorly written, or poorly organized proposal damages your reputation more than
the decision to submit one.

Second, the proposal provides a basis for the sponsor to evaluate the results of a research
project
The third benefit of the proposal is the discipline it brings to the sponsor. It serves as a
catalyst for discussion between the researcher and the managers.
Value to the researcher

A proposal is more beneficial for the beginning researcher to have a tentative work plan that
charts the logical steps to accomplish the stated objectives. The specific benefits of
proposals to the researcher include the following.
It allows the researcher to plan and review the projects steps. Literature review enables the
researcher to assess the various approaches to the problem and revise the plan
accordingly. It enables the researcher to critically think through each stage of the research
process.
After acceptance the research proposal serves as a guide for the researcher throughout the
investigation. Progress can be monitored and milestones noted.
A final benefit, particularly for the young researcher is that the proposal forces time and
budget estimates.
MAJOR COMPONENTS OF THE RESEARCH PROPOSAL

You can put together a set of modules that tailor your proposal to the intended audience.
Each of the following modules is also flexible internally so that its content and length may be
adapted to specific needs.
Abstract/ Executive Summary

The executive summary allows a busy manager or sponsor to understand quickly the thrust
of the proposal. It is essentially an informative abstract, giving executives the chance to
grasp the essentials of the proposal without having to read the details.
The goal of the summary is to secure a positive evaluation by the executive who will pass it
on to the staff for a full evaluation. As such, it should include a brief statement of the
problem, the objectives of the study, and the benefits of your approach. If it is an unsolicited
proposal, a brief description of your qualifications is also appropriate.
Problem Statement
This section convinces the sponsor to continue reading the proposal. You should capture
the reader's attention by stating the problem, its background, and consequences. As
discussed earlier, the problem can be represented by the management question. This is the
question that starts the research task. The importance of the problem should be emphasized
here if a separate module on the importance/benefits of study is not included later in the
proposal. In addition, the problem statement will include any restrictions or areas of the
problem that will not be addressed.
A problem too broadly stated cannot be addressed adequately by one study. It is important
that the problem is distinct from related problems and that the sponsor can see the
delimitations clearly. Be sure that your problem is clearly stated without the use of idioms or
cliches. After reading this section, the potential sponsor should know the problem, its
significance, and why something should be done to change the status quo.
Research Objectives
The research objectives module addresses the purpose of the investigation. It is here that
you layout exactly what is being planned by the proposed research. In a descriptive study,
the objectives can be stated as the research question(s). Recall that the research question

can be further broken down into investigative questions. If the proposal is for a causal study,
then the objectives can be restated as a hypothesis.
The objectives module flows naturally from the problem statement, giving the sponsor
specific, concrete, and achievable goals. It is best to list the objectives either in order of
importance or in general terms first, moving to specific terms (i.e., research question
followed by underlying investigative questions). The research questions (or hypotheses, if
appropriate) should be set off from the flow of the text so that they can be found easily.
The research objectives section is the basis for judging the remainder of the proposal and,
ultimately, the final report. Verify the internal consistency of the proposal by checking to see
that each objective is discussed in the research design, data analysis, and results sections.
Research Design/Methodology
Up to now, you have told the sponsor what the problem is, what your study goals are and
why it is important for you to do the study. The proposal has presented the value and
benefits of the study for the sponsor. This module lays out exactly what you are going to do
in technical terms. It is here that the sponsor understands exactly what it is "buying."
The research design section should include as many subsections as needed to show the
phases of the project. Provide information on your proposed design for such tasks as
sample selection and size, data collection method, instrumentation, procedures, and ethical
requirements. When more than one way exists to approach the design, discuss the methods
you rejected and why your selected approach is superior.
Data Analysis
A brief section on the methods used for analyzing the data is appropriate for large-scale
contract research projects and doctoral theses. With smaller projects, the proposed data
analysis would be included within the research design section. Describe your proposed
treatment and the theoretical basis for using the selected techniques. The object of this
section is to assure the sponsor that you are following correct assumptions and using
theoretically sound data analysis procedures.
This is often an arduous section to write. By use of sample charts and dummy tables, you
can make it easier to conceptualize your data analysis. This will make the section easier to
write and easier to read. The data analysis section is important enough in contract research
that you should contact an expert to review the latest techniques available for your use. If
there is no statistical or analytical expertise within your company, be prepared to hire a
professional to help with this activity.
Nature and Form of Results

Upon finishing this section, the sponsor should be able to go back to the problem statement
and research objectives and discover that each goal of the study has been covered. One
should also specify the types of data to be obtained and the interpretations that will be made
in the analysis. If the data are to be turned over to the sponsor for proprietary reasons, make
sure that this is reflected. Alternatively, if the report will go to more than one sponsor, that
should be noted.
Literature Review
The literature review section should examine recent (or historically significant) research
studies, company data, or industry reports that act as a basis for the proposed study. Begin

your discussion of the related literature and relevant secondary data from a comprehensive
perspective, moving to more specific studies that are associated with your problem. If the
problem has a historical background, begin with the earliest references.
Avoid the extraneous details of the literature; do a brief review of the information, not a
comprehensive report. Emphasize the important results and conclusions of other studies,
the relevant data and trends from previous research, and particular methods or designs that
could be duplicated or should be avoided. Discuss how the literature applies to the study
you are proposing; show the weaknesses or faults in the design, discussing how you would
avoid similar problems. If your proposal deals solely with secondary data, discuss the
relevance of the data and the bias or lack of bias inherent in it. Always refer to the original
source. If you find something of interest in a quotation, find the original publication and
ensure you understand it. In this way, you will avoid any errors of interpretation or
transcription.
Close the literature review section by summarizing the important aspects of the literature
and interpreting them in terms of your problem. Refine the problem as necessary in light of
your findings.
Importance/Benefits of the Study

This section allows you to describe explicit benefits that will accrue from your study. The
importance of "doing the study now" should be emphasized. Usually, this section is not more
than a few paragraphs. If you find it difficult to write, then you have probably not understood
the problem adequately. Return to the analysis of the problem and ensure, through
additional discussions with your sponsor, your research team, or by a re-examination of the
literature, that you have captured the essence of the problem. .
This section also requires you to understand what is most troubling to your sponsor. If it is a
potential union activity, you cannot promise that an employee survey will prevent
unionization. You can, however, note the importance of knowing what the employees think
and the implications that may have. This benefit may allow management to respond to
employee concerns and forge their own linkage between those concerns and unionization.
The importance/benefits section is particularly important to the unsolicited external proposal.

It is here that you must convince the potential sponsor that the data you plan to collect will
completely meet its needs. This section also contains the contractual statement telling the
sponsor exactly what types of information will be received. Statistical conclusions, applied
findings, recommendations, action plans, models, strategic plans, and so forth are examples
of the forms of results.
Budget
The budget should be presented in the form desired by the sponsor. For example, some
organizations require secretarial assistance to be individually budgeted, whereas others
insist that it be included in the research director's fees or the overhead of the operation. In
addition, limitations on travel, per diem rates, and capital equipment purchases can change
the way in which you prepare a budget.
Typically, the budget should be no more than one to two pages. The following figure shows
a format that can be used for small contract research projects. Additional information,
backup details, quotes from vendors,Sample Budget Format
Research Program Budget

Budget Items Rate Total Days Charge
A Salaries
1. Research director ______ _____ ______
2. Associate director ______ ______ ______
3. Research assistants ______ ______ ______
4. Secretarial support ______ ______ ______
Subtotal
B. Other costs
5. Employee services and benefits ______
6. Travel ______
7. Office supplies ______
8. Telephone ______
9. Rent ______
10. Other equipment ______
11. Publication and storage costs ______
Subtotal
C. Total of direct costs
D. Overhead support
12. Federal support (% of C) ______
13. Institution support (% of C) ______
Subtotal ______
E. Total funding requested ______
It is extremely important that you retain all information you use to generate your budget. If
you use quotes from external contractors, get the quotation in writing for your file. If you
estimate time for interviews, keep explicit notes on how you made the estimate. When the
time comes to do the work, you should know exactly how much money is budgeted for each
particular task.
Some costs are more elusive than others. Do not forget to build the cost of proposal writing
into your fee. Publication and delivery of final reports can be a last-minute expense that can
easily be overlooked in preliminary budgets. In the following figure, we show a budget from
an actual proposal.
Sample Budget
Research Program Budget
Total
Budget Items Rate Days Charge
A. Salaries
1. Research director, Elizabeth Rankin B 150/hr 20 hours B 3,000

2. Associate director, Peter Stepper B 100/hr 20 hours B 2,000
3. Research assistants, (2) B 20/hr300 hours B 6,000
4. Secretarial support (1) B 8/hr 150 hours B 1,200

Subtotal B 12,200
B. Other costs
5. Employee services and benefits $500
6. Travel $100
7. Office supplies $800
8. Telephone
9. Rent
10. Other equipment
11. Publication and storage costs B 100
Subtotal B 1,500
C. Total of direct costs B 13,700
D. Overhead support B 5,480
Total funding requested B 19,180
Time Schedule
Your schedule should include the major phases of the project, their time tables, and the
milestones that signify completion of a phase. For example, major phases may be:
(1) exploratory interviews,
(2) final research proposal,
(3) questionnaire revision,
(4) field interviews,
(5) editing and coding,
(6) data analysis, and
(7) report generation.
Each of these phases should have an estimated time schedule and people assigned to the
work.
Bibliography
For all projects that require literature review, a bibliography is necessary. Use the
bibliographic format required by the sponsor. If none is specified, a standard style manual
(e.g., Kate L. Turabian, A Manual for Writers of Term Papers, Theses, and Dissertations;
Joseph Gibaldi and Walter S. Achtert, MLA Handbook for Writers of Research Papers; or
the Publication Manual of the American Psychological Association) will provide the details
necessary to prepare the bibliography.
Appendixes
Glossary.
Questionnaire
Measurement Instrument (for large projects)
EVALUATING THE RESEARCH PROPOSAL

Proposals are subjected to formal and informal reviews. The formal method has some
variations, but its essence is described as follows. Criteria are established before the
proposal is received and given weights or points. The proposal is evaluated with a checklist
of criteria in hand. Points are recorded for each category reflecting the sponsor's
assessment of how well the proposal meets the category's established criteria. Long and
complex proposals are typically reviewed by several different people with each reviewer
responsible for a particular section.
After the review, the category scores are added to provide a cumulative total. The proposal
with the highest number of points will win the contract. The formal method is most likely to

be used for competitive government, university, or public sector grants as well as for large-
scale contracts.
Small scale contracts are more prone to informal evaluation. With informal evaluation, the
project needs, and thus the criteria, are well understood but not usually well documented. In
contrast to the formal method, a system of points is not used and the criteria are not ranked.
The process is more qualitative and impressionistic in nature.
In practice, there are many items that contribute to a proposal's being accepted and the
associated study funded. Primarily, the content discussed above must be included to the
level of detail required by the sponsor. Beyond the required modules, there are factors that
can quickly eliminate a proposal from consideration and factors that improve the sponsor's
reception of the proposal.
First, the proposal must be neatly presented. Although a proposal produced on a word
processor and bound with an expensive cover will not overcome design or analysis
deficiencies, a poorly presented, unclear, or disorganized proposal will not get serious
attention from the reviewing sponsors. Second, the proposal's major topics should be easily
found and logically organized. The reviewer should be able to page through the proposal to
any section of interest.
The proposal also must meet specific guidelines set by the sponsoring company or agency.
This includes budgetary restrictions and schedule deadlines.
A fourth important aspect is the technical writing style of the proposal. The problem
statement must be easily understood. The research design should be clearly outlined and
the methodology explained. The importance/benefits of the study must allow the sponsor to
see why the research should be funded. The objectives and results sections should
communicate exactly the goals and concrete results that will come from the study.
Finally, budget and schedule considerations must be kept in mind. A late proposal will not
be reviewed. A schedule that does not meet the expected deadlines will disqualify the
proposal. A budget that is too high for the allocated funds will be rejected. Conversely, a
budget that is very low compared to competing proposal budgets will tend toward rejection
on the basis that either something is missing or there is something wrong with the
researchers.
AN OUTLINE OF THE MAJOR COMPONENTS A RESEARCH PROPOSAL

i) Cover page
Title (A Case Study of ..)
Purpose why the Research is conducted
Name and Address of the investigator
Month and Place where the proposal is written
ii) Acronyms (if any, abbreviations alphabetically arranged))
iii) Table of Contents
iv) List of Tables

v) List of Figures
CHAPTER I
INTRODUCTION
1.1 Background of the study General to specific or Deductive order is recommended
 Definitions and Concepts Related to the topic
 Global issues and trends about the topic
 Situations in Less Developed Countries or in an industry
 National level
 Regional level
Background of the organization (not more than one pagel)
1.2 Statement of the Problem (Justification of the study)-
 Facts that motivated the investigator to conduct the research
 Exactly specifying and measuring the gap
 Hard facts or quantitative data about the topic for some previous
years, for example three years
1.3 Research Objectives, Research Questions, and Research Hypothesis
1.3.1 Research Objectives Ends to be met in conducting the research
 This shows what the investigator will analyze and how;
 what comparisons to make and at what level
 General objective- often one statement directly related to the topic
 Specific Objectives- often 4-8;
i. what the researcher wants to achieve
ii. about s/he wants to collect data;
iii. what to analyze and compare
1.3.2 Research Questions - Questions to be answered to meet the research objectives or
produce implications for the hypothesis
1.3.3 Research Hypothesis ( Optional) - tentative propositions to be tested in the
research
1.4 Research Methods and Data Collection
1.4.1. Data Type and Source (Decide one of them or both by giving justifications)
 Qualitative V/s Quantitative ( Give reasons)
 Primary Sources (Decide on which method or methods to use by stating
justifiable reasons
Questionnaires
Interviews
Observations
Focus group discussions, etc.
 Secondary Sources(Decide on which method or methods to use by
stating justifiable reasons) and exactly state the sources from which you
will get the data
Reports, manuals, Internal publications, data base systems
Journals and Publications for assessing existing findings and internet
Books for assessing theories and principles related to the topic
etc.
1.4.2. Study design

 Census Vs Survey( Decide which one to use and why)
 Survey design ( Decide on the survey designs to be used by clearly
stating the reasons for your decision
 Sample Size( Use the sample size determination formula as base
and make adjustments with due regard to the target population and
the homogeneity or heterogeneity of the population characteristics
 Sampling Design( Show how and why you are going to use the
different techniques of probability and/or nonprobability sampling
techniques
 Sampling Procedure( clearly state the steps in sampling-
refer to the first module for Research Methods for help.
1.4.3. Data collection
 State the data collection tool or tools to be used with
necessary
Justifications written in the proposal
Interview,
Questionnaire,
Observation,
Focus group discussion
 Questionnaire design
 Questionnaire testing or pretesting if necessary
 Data collection Procedures ( show in detail)
How the Questionnaire will be administered
Who will be involved?
How many people will be involved?
When will data be collected?
Where will data be collected?
How Data collection will be administered?
How other methods will be applied in
combination(Triangulation)
Focus Group discussions
Interviews
Observation
1.4.4. Data processing and Analysis
 Manual Vs Mechanical
 Editing: Field Vs in-house editing ( include reasons)
 Recording /Data entry/ or keyboarding
 Methods of Analysis
Qualitative V/s Quantitative
Descriptive (tools to be used)
Explanatory
1.5 Significance of the study- Benefit of the study (Who may use the findings)
User organizations
Other researchers
The society or the community
1.6 Definition of key Terminologies and Concepts
Conceptual definitions general and related to dictionary meaning
Operational in the context of the research paper and in measurable terms
Scope and Limitation of the study

 Scope provides the boundary or framework

 Limitation is the implication or effect of the scope- Does not mean
weakness or problems to be faced
CHAPTER II
REVIEW OF RELATED LITERATURE.
 Deductive Order (General to specific)
 Concepts and definitions of terminologies directly related to the topic.
 Global issue and trends
 Regional or continental or industrial facts
 Best experiences, if relevant
 Problems and challenges related to the topic
 Important points in the literature
Adequacy- Sufficient to address the statement of the problem
and the specific objectives in detail
 Logical flow and organization of the contents
 Adequate citations
 The variety of issues and ideas gathered from many authors
III TIME SCHEDULE AND BUDGET

TIME SCHEDULE- Try to put reasonable and realistic time on the basis of
The scope of the study
The research objectives to be achieved
The methods and techniques to be used
Description or Activity Duration Final Date Remark
BUDGET Realistic and detailed to reflect the activity schedule and convincing for the
reader or possibly the financier; reflect real budget
Description or Activity Unit Unit Price Computations Total Cost Remark
References/Bibliography
Last name, first name, 2nd name (year: page), Title of the book, edition, Publisher details,
city, state, Country.
Annex/Appendix - Questionnaire

Checklist for Preparing a Research Proposal
Decision to Make in
the Research Process Basic Questions
What is the purpose of the study?

Problem definition How much is already known?
Is additional background information necessary? What is to be measured?
How?
Can the data be made available?
Should research be conducted?
Can a hypothesis be formulated?
What types of questions need to be answered?
Are descriptive or causal findings required?
Selection of basic What is the source of the data?
research design Can objective answers be obtained by asking people? How quickly is the
information needed?
How should survey questions be worded?
How should experimental manipulations be made?
Selection of Who or what is the source of the data?

Can the target population be identified?
a sample Is a sample necessary?
How accurate must the sample be?
Is a probability sample necessary?
Is a national sample necessary?
How large a sample is necessary?
How will the sample be selected?
Who will gather the data?
Data gathering How long will data gathering take?
How much supervision is needed?
What operational procedures need to be followed?
Will standardized editing and coding. procedures be utilized?

Data analysis and How will the data be categorized?
evaluation Will computer or hand tabulation be utilized?
What questions need to be answered?
How many variables are to be investigated simultaneously?
What are the criteria for evaluation of performance?
Who will read the report?
Are managerial recommendations requested?
Type of report How many presentations are required?
What will be the format of the written report?
How much will the study cost?

Is the time frame acceptable?
Overall evaluation Do we need outside help?
Will this research design attain the stated research
objectives? When should the research be scheduled to
begin?

3.6. Ethical Issues in Business Research
 What is Ethics?
 Ethics is a state of good or bad
 Ethics Vs Rules and Regulations
 Rules are formal and ethics is societal law
 Research demands ethical behavior from its participants.
 The goal of ethics in research is to ensure that no one is harmed or

suffers adverse consequences from research activities.
 Ethical questions are philosophical questions that are based on the

perceptions of a society.
 Societal norms are codes of behavior adopted by a group, suggesting
what a member of a group ought to do under given circumstances.
 Ethics bridges the gap between laws and actual practices.
 In business research ethical issues are concerns of the three major

stakeholders:
o the researcher,
o the subject or respondent, and
o the sponsor.
 Therefore ethical issues in business research are explained by the
interaction of the rights and obligations of these three stakeholders.
Figure 5: Rights and Obligations of research stakeholders

Rights and Obligations of the Respondent
Obligation
 to provide truthful information.
Rights:
i) Privacy
Collecting and giving out of personal information of respondents
without their knowledge can be a serious violation
 This involves the subjects freedom to choose whether or not to comply
with the investigators request.
 Field interviewers indicate their legitimacy by
o passing out business cards,
o wearing nametags, or
o identifying the name of their company.
ii) Deception/The right not to be deceived

 Deception occurs when the respondent is only told a portion of the
truth or when the truth is fully compromised.
 Some suggest two reasons to legitimate deception:
to prevent biasing the respondents prior to the survey and
to protect the confidentiality of a third party (e.g., the client).
a. The benefits to be gained by deception should be balanced against the
risks to the respondents.
b. Once the research is completed, the subjects who were deceived
should be debriefed.
c. Debriefing explains the truth to the participants and explains why
deception was used.
d. Researchers are not expected to create a false impression by

disguising the purpose of the research
iii) The right to be informed

 The right to be informed of all aspects of the research including:
o its purpose and
o sponsorship
 not to exaggerate/Neither overstate nor understate
 Explain to the respondent that their rights and well-being will be

adequately protected and indicate how that will be done.
E.g. maintaining confidentiality
 Ensure that interviewers obtain informed consent from the

respondents.
 Debriefing Respondents - it is a good practice to offer them follow-up

information.

 Consent must be voluntary and free from coercion, force,
requirements, and so forth.
 Respondents must be adequately informed in order to make decisions.

 Respondents should know the possible risks or outcomes associated
with the research. projects.
Rights and Obligations of the Researcher

 A code of ethics may also be developed by professional associations.
 Code of ethics is a statement of principles and operating procedures

for ethical practice.
 Points that deserve attention in the efforts of the researcher in relation

to ethics.
i) The purpose of Research is Research

 The purpose should be explained clearly
 The researcher should not misrepresent himself/herself for the sake of

getting admission or information.
 Research should not be politicized for any purpose.
ii) Objectivity
 Researchers must not intentionally try to prove a particular point for
political purposes.
 The researcher should not try to select only those data that are
consistent with his/her personal intentions or prior hypothesis.
iii) Misrepresentation of Research

 To analyze the data honestly and to report correctly the actual data
collection methods.
iv) Protecting the Right to Confidentiality of both Subjects and Clients

 The privacy and anonymity of the respondents are preserved.
 Both parties also expect objective and accurate report from the
researcher.
v) Dissemination of Faulty Conclusions

 Researchers and clients should be reserved from disseminating
conclusions from the research project that are inconsistent with or not
warranted by the data.
Rights & Obligations of the sponsor (Client/User)

i) Buyer-seller relationship
 The general business ethics expected to exist between a buyer and a
seller

 It is unethical to solicit competitive bids that have no chance of' being
accepted just to fulfill a corporate purchasing policy stating that a bid
must be put out to three competitors.
ii) An Open Relationship with Researchers

 The obligation to encourage the researcher to seek out the truth
objectively.
 This requires a full and open statement of
o the problem,
o explication of time and money constraints, and
o any other insights that may help the supplier,
iii) An Open Relationship with Interested Parties

 Conclusions should be based on the data.
 Violation of this principle may refer to justifying a self-serving, political

position that is not warranted from the data poses serious ethical
questions.
iv) Commitment to Research

 This involves requesting research proposals when there is a low
probability that the research will be conducted.
 Researchers believe that the client has the obligation to be serious

about considering a project before soliciting proposals.
v) Pseudo-Pilot Studies
 Tell the researcher that it is a pilot study and that if a good job is
performed during the pilot study stages there will be an additional
major contract down the line.
vi) Right to Quality Research

 Ethical researchers provide the client with the type of study he/she
needs to solve the managerial question.
 The design of the project should be suitable for the problem
 The ethical researcher reports results in ways that minimize the

drawing of false conclusions.
CHAPTE IV
MEASUREMENT AND SCALING OF CONCEPTS
4.1. Definitions of Concepts
 A concept or a construct is a generalized idea about a class of
o objects,

o attributes,
o occurrences, or
o processes.
 Some concepts are concrete and quantifiable while others are abstract
and qualitative.
 The nature of concepts calls for clearly defining them conceptually and
operationally.
Operational Definition
 A concept must be made operational in order to be measured.
 An operational definition gives meaning to a concept by specifying the

activities or operations necessary to measure it.
 Concepts like grievances may be difficult to operationalize, whereas a

concept like personnel turnover is less difficult.
 The operational definition specifies what must be done to measure the

concept under investigation
An operational definition is like a manual of instructions or a recipe
Rules of Measurement
 A rule is a guide that instructs us on what to do? An example of a rule
of measurement might be: "Assign the numerals 1 through 7 to
individuals according to how productive they are.
"shopping time" must be operationally defined.
 The values assigned in the measuring process can be manipulated

according to certain mathematical rules.
4.2. Types of Scales
 A scale may be defined as "any series of items which is progressively

arranged according to value or magnitude into which an item can be
placed according to its quantification
 A scale is a continuous spectrum or series of categories.
 The purpose of scaling is to represent, usually quantitatively, an item's,

a person's, or an event's place in the spectrum.
 The four types of scales are:
o nominal,
o ordinal,
o interval, and

o ratio.
Nominal Scale
 The numbers or letters assigned to objects serve as labels for
identification or classification.
o Coding of males as 1 and females as 2.
Ordinal Scale
 Arranges objects or alternatives according to their magnitude in an
ordered relationship.
 Respondents are asked to rank order their preferences, in ordinal
values
 Does not say anything about the distance or interval between the
values
"excellent," "good," "fair," or "poor."
Interval Scale
 Not only rank order values but also measure order (distance) in units of
equal intervals.
 The location of the zero point is arbitrary- does not signify absence.
price index
 The classic example of an interval scale is the Fahrenheit temperature
lack of an absolute zero point.
Ratio Scale
 Ratio scales have absolute rather than relative quantities.
 For example, money and weight are ratio scales because they possess
an absolute zero and interval properties.
 Zero represents absence of the given attribute.
Mathematical and Statistical Analysis of Scales

Type of Scale Numerical Operation Descriptive Statistics
Nominal Counting Frequency in each category
Percentage in each category
Ordinal Rank ordering Mode, Median, Range,

Percentile ranking
Interval Arithmetic operations on Mean, variance
intervals between numbers Standard deviation
Ratio Arithmetic operations on Geometric mean

actual quantities Coefficient of variation
4.3. THREE CRITERIA FOR GOOD MEASUREMENT

Three major criteria for evaluating measurements:
oReliability,
oValidity, and
oSensitivity.
Reliability
 When the outcome of the measuring process is reproducible,
the measuring instrument is reliable.
 It is the degree to which measures are free from error and therefore yield consistent
results.
 Two dimensions underlie the concept of reliability:
 repeatability and
 internal consistency..
 Two problems with measures of test-retest reliability:

o The premeasure (or first measure) may sensitize the respondents to
their participation in a research project and subsequently influence the
results of the second measure.
 the time between measures is long, there may be attitude change or
other maturation of the subjects.
 correlation between the first and the second administration
 The homogeneity of the measure.
o An attempt to measure an attitude may require asking several similar
(but not identical) questions or presenting a battery of scale items.
Internal Consistency
 The technique of splitting halves is the most basic method for checking
internal consistency when a measure contains a large number of
items.
Validity

 The purpose of measurement is to measure what we intend to
measure
 A student received poor grade may say: "I really understood that
material because I studied hard. The test measured my ability to do
arithmetic and to memorize formulas rather than my understanding of
statistics."
 Validity addresses the problem of whether a measure measures what it
is supposed to measure.
 Researchers have attempted to assess validity in a variety of ways:
o asking questions such as
 "Is there a consensus among my colleagues that my attitude scale
measures what it is supposed to measure?"
 "Does my measure correlate with others' measure of the 'same'
concept?" or
 "Does the behavior expected from my measure predict the actual
observed behavior?"
 There are two measures of validity
i) Face validity or content validity refers to the subjective agreement
among professorial that a scale logically appears to reflect accurately
what it purports to measure.
ii) Criterion validity is an attempt by researchers to answer the question
"Does my measure correlate with other measures of the 'same'
construct?"
 Criterion validity may be classified as either:
concurrent validity or
predictive validity,
 In concurrent validity new measure is taken at the same time as the
criterion measure, the method is called.
 Predictive validity is established when an attitude measure predicts a

future event.
Reliability and Validity
 Reliability, although necessary for validity, is not in itself sufficient.
 Validity shows whether the data shows the true picture of a subject or
concept
 Reliability shows dependability of a measure.
ATTITUDE MEASUREMENT
 An attitude is an enduring disposition to respond consistently in a given
manner to various aspects of the world, including persons, events, and
objects.
 Three components of attitude have been disclosed: affective, cognitive,
and behavioral.
 The affective component reflects an individual's general feelings or

emotions toward an object.
 The cognitive component represents one's awareness of and

knowledge about an object.
 The behavioral component reflects expectations or a predisposition to
action.
Attitude as a Hypothetical Construct
 A hypothetical construct is a variable that cannot be directly observed
but is measured by an indirect means, such as verbal expression or
overt behavior
4.4.1. Techniques for Measuring Attitudes

There are four techniques for measuring attitude:
Ranking
Rating
Sorting
Choice techniques
Attitude Rating Scales

 Rating is a measurement task that presents respondents with several
concepts and requires the respondent to estimate the magnitude of a
characteristic or quality that an object possesses.
 There are different types of rating scales.
i) Simple Attitude Scaling

Attitude scaling requires that an individual agrees or disagrees with a
statement or respond to a single question with yes or no or agree or
disagree.
For example, The nature of your job is:

Fascinating YES NO Cannot decide
Routine YES NO Cannot decide
Satisfying YES NO Cannot decide
 The purpose of an attitude scale is to find an individual's position on a

continuum.
 Easy to design but limits the freedom of respondents
ii) Category Scales
 Expands the response categories provides the respondent more
flexibility in the rating task.
How often is your supervisor courteous and friendly to you?

Never
Rarely
Sometimes
Often
Very often
If you could choose, how much longer would you stay at your present
job?
 Less than six months

 Six months to one year
 Longer than one year
 It provides more information and more freedom to respondents
iii) Summated Ratings Method: The Likert Scale
 Likert scale indicates the attitude of repondents by checking how
strongly they agree or disagree with carefully constructed statements
that range from very positive to very negative toward the attitudinal
object.
 Individuals generally choose from five alternatives: strongly agree,
agree, uncertain, disagree, and strongly disagree; but the alternatives
may number from 3 to 9.
Mergers and acquisitions provide a faster means of growth than internal
expansion.
Strongly Strongly
Disagree Disagree Uncertain Agree Agree
(1) (2) (3) (4) (5)
 To measure the attitude, researchers assign scores or weights to the

alternative responses in order
iv) Semantic Differential

 The semantic differential consists of identification of a company,
product, brand, job, or other concept followed by a series of seven-
point bipolar rating scales.
Modern _: _: _: _: _: _: - Old-Fashioned
 The subject makes repeated judgments of the concept under

investigation on each of the scales related to measuring attitudes
Fast ____: ____:____:____:____:____:____: Slow

Intellectual ____: ____:____:____:____:____:____: Emotional
Semantic
Contemporary ____: ____:____:____:____:____:____: Traditional
differential Composed ____: ___:____:____:____:____:___Improvised
Flat ____: ____:____:____:____:____:___ Sharp
scales to measure
Busy ____: ____:____:____:____:____:____: lazy
attitude jazz New ____: ____:____:____:____:____:____: Old
Progressive ____: ____:____:____:____:____:____: Regressive
 The scoring of the semantic differential can be illustrated by using the

scale bounded by the anchors "modem" and "old-fashioned."
extremely modern,

very modern,
slightly modern,
both modern and old fashioned,
slightly old-fashioned,
very old-fashioned, and
extremely old-fashioned.
A weight is assigned to each position on the rating scale.
Traditionally, scores are 7, 6, 5,4, 3,2, 1, or +3, +2, +1, 0, -1, -2, -3.
Numerical Scales
 Numerical scales have numbers as response options to identify
categories (response positions).
 The scale items can have a 5-point numerical scale or a 7-point
numerical scale; and so on.
 This numerical scale utilizes bipolar adjectives in the same manner as

the semantic differential, but uses numbers instead of semantics.
v) Constant-Sum Scale
Pleasant - : - . - . - . - . - . - . - Unpleasant
8 7 6 5 4 3 2 1
Friendly - . - . - . - . - . - . - . - Unfriendly
8 7 6 5 4 3 2 1
Rejecting - . - . - . - . - . - . - : - Accepting
1 2 3 4 5 6 7 8
Helpful - . - . - . - . - . - . - . - Frustrating
8 7 6 5 4 3 2 1
Unenthusiastic - : - . - . - . - . - . - . - Enthusiastic
1 2 3 4 5 6 7 8
Tense - . - . - . - . - . - . - . - Relaxed
1 2 3 4 5 6 7 8
Distant - . - . - . - . - . - . - . - Close
1 2 3 4 5 6 7 8
Cold - . - . - . - . - . - . - . - Warm
8 7 6 5 4 3 2 1
Cooperative - . - . - . - . - . - . - . Uncooperative
8 7 6 5 4 3 2 1
 Constant sun scale is a scale that divides a common constant sum to

indicate the relative importance of an attribute
 The constant-sum scale works best with respondents having a higher

educational level respondents.
How much would you like to allocate to salary, medical insurance, and
retirement plan? Divide the Birr3,000 according to your preference.

 Modern versions of the scale use a single adjective as a substitute for
the semantic differential when it is difficult to create pairs of bipolar
adjective.
Supervisor's Name
+3
+2
+1
Supportive
-1
-2
-3
RANKING
 An ordinal scale asks respondents to rank order (from most preferred
to least preferred) a set of small number objects or attributes.
Paired Comparisons
 Respondents are provided with two preferences at a time and then
asked to pick the one they preferred.
 More than three preferences can be compared but comparison is
made in pairs only
I would like to know your overall opinion of two brands of adhesive

bandages. They are Curad brand and Band-Aid brand.
Overall, which of these two brands: Curad or Band-Aid-do you think is
the better one? Or are both the same?
Curad is better __________
Band-Aid is better __________
They are the same __________
SORTING
 Sorting tasks require that respondents indicate their attitudes or beliefs
by arranging items using a pile of cards
 Each card reflects an element from advertising or the product being
measured. Sorting is used for grouping concepts or variables in to
different classes based on preferences.

CHAPTER V
STUDY DESIGNS
5.1. Census versus Survey

 Census involves collecting all the necessary data from the whole
population under study to make the conclusion about the population.
 Census often suffers from the following drawbacks.
 It is cumbersome
 It is time consuming
 It is costly
 It may be less accurate because of administrative problems
 Survey is a research technique in which information is gathered from a
sample of respondents by use of a questionnaire
 Sample survey is a formal term for survey. It indicates that the purpose
of contacting respondents is to obtain a representative sample of the
target population.
5.2. Survey Research

 A survey is defined as a method of primary data collection based on
communication with a representative sample of respondents to make
the conclusion about a large population from which the sample is
drawn.
Survey Objectives
 to describe what is happening or to learn the reasons for a particular
business activity.
 Some survey objectives are to identify characteristics of a particular
group, measure attitudes, and describe behavioral patterns.
Basic Survey Designs

 On temporal basis surveys may be classified in two:
cross sectional and
longitudinal designs.
 In cross sectional survey, data are collected at one point in time from a
sample selected to describe some larger population at that time.
 Cross sectional survey can be used not only for purposes of
description but also for explanation
 Longitudinal studies are surveys of respondents at different points in

time
 It allows analysis continuity and changes over time.
 Used in both descriptive and explanatory researches to report changes
 The primary longitudinal survey designs are:
trend studies,

cohort studies and
panel studies.
Trend studies
 A given general population may be sampled and studied at different
points in time while different persons are studied in each survey
 Each sample represents the same specific population at different
points in time.
Cohort studies
 Focus on the same specific population each time data are collected
although the samples studied may be different.
 Uses the same specific population to measure changes at another time
Panel studies
 Involves collecting data from the same sample of individual
respondents over time.
 Permit the analysis of process and change over time, which is not
easily possible in a cross sectional survey.
 Limitations of panel studies
High attrition
Switching of respondents
Lack of willingness to respond
Lack of appropriate memory
 Thus panel studies tend to be expensive, time consuming and difficult
Choosing the appropriate survey design

 A cross sectional survey more appropriate single time description
 Examining some type of dynamic process such as changes, impact of
an intervention that involve change over time requires longitudinal
studies
 Panel studies are more feasible when the phenomenon under study is
short in duration, particularly when the investigation at individual level
changes over time.
Benefits of survey designs
 Surveys provide:
quick,
inexpensive,
efficient
accurate and
flexible
means of assessing information about a population.
 Sampling should not be regarded as necessary evil.

 Surveys are more accurate than census results because census may
require large number of skilled staff, more time, and more money
would make census very difficult to ensure accuracy.

 The quality of data collection may be compromised because of
difficulties in administering the process
 However survey methods suffer from serious consequences.
5.3. ERRORS IN SURVEY RESEARCH

Random Sampling Error
 Even with technically proper random probability samples, statistical
errors will occur because of chance variation.
 However, random sampling errors can be estimated using standard

error of estimate or can be considered in determining confidence
intervals in testing the hypothesis
Systematic Error
 Results from some imperfect aspect of the research design or from a
mistake in the execution of the research.
 These errors or biases are also called nonsampling errors.
 A sample bias exists when the results of a sample show a persistent
tendency to deviate in one direction from the true value of the
population parameter.
 Can be classified under two general categories:
respondent error and
administrative error.
RESPONDENT ERRORS
Nonresponse Error
 Few surveys have 100 percent response rates.
 The statistical differences between a survey that includes only those
who responded all, a survey that also includes those who failed to
respond are referred to as nonresponse error.
 Causes of nonresponse errors include:
Not at home
Refusals occur
Self-selection biases
 Comparing the demographics of the sample with the demographics of
the target population is one means of inspecting for possible biases in
response patterns.
Response Bias
 A response bias occurs when respondents tend to answer in a certain
direction, i.e., when they consciously or unconsciously misrepresent
the truth.
 If a distortion of the measurement occurs because respondents'
answers are falsified or misrepresented, either intentionally or
inadvertently, the sample bias that occurs is a response bias.

 Deliberate Falsification Occasionally some people deliberately give
false answers.
 A response bias may occur when people misrepresent answers in
order to appear intelligent, to conceal personal information, to avoid
embarrassment, and so on.
 In employee surveys, employees may believe that their responses,
especially those indicating negative feelings, may not be confidential.
 Sometimes respondents who become bored with the interview will
simply provide answers just to get rid of the interviewer.
 Sometimes answers are given simply to please the interviewer.
 Unconscious Misrepresentation Even when a respondent is
consciously trying to be truthful and cooperative, response bias can
arise from question format, question content, or some other stimulus.
 Respondents who misunderstand the question may unconsciously
provide a biased answer.
 A bias may also occur when a respondent has not thought about the
question "sprung" on him or her by an interviewer.
Semantic Confusion
 The misunderstanding of questions by respondents often can be
humorous.
 Types of Response Bias:
acquiescence bias,
extremity bias,
interviewer bias,
auspices bias, and
social desirability bias.
 These categories overlap and are not mutually exclusive.
Acquiescence Bias
 The general tendency to agree or disagree with all or most questions is
particularly prominent in research on new products, new programs, or
ideas previously unfamiliar to the respondents.
Extremity Bias
 The tendency to use extremes when responding to questions
Interviewer Bias
 Occurs because of interplay between interviewer and respondent.
 This is the influence of the interviewers presence on the responses of
the respondents resulting in untrue or modified answers.
Auspices Bias
 Answers to its survey may be deliberately or subconsciously
misrepresented because respondents are influenced by the
organization conducting the study.

Social Desirability Bias
 May occur, either consciously or unconsciously, because the
respondent wishes to create a favorable impression
 People may overestimate their recreational activities because
recreation is perceived as a socially desirable activity.
ADMINISTRATIVE ERROR
 The results of improper administration or execution of the research
task are administrative errors.
 Inadvertently (or carelessly) caused by confusion, neglect, omission or
some other blunder.
 Four types of administrative errors:

o sample selection error,
o data-processing error,
o interviewer error, and
o interviewer cheating.
Sample Selection Error

 Results in an unrepresentative sample because of an error in either the
sample design or execution of the sampling procedure.
Data-Processing Error
 Occurs because of incorrect data entry, incorrect programming, or
other error during the analysis stage.
 Data-processing error can be minimized by establishing careful proce-
dures for verifying each step in the data-processing stage.
Interviewer Error
 Errors caused by lack of ability and/or negligence of interviewers in
recording responses
 Selective perception may cause interviewer error when interviewers
record data that are not somewhat supportive of their own attitudes
and opinions.
Interviewer Cheating
Interviewer cheating occurs when an interviewer falsifies entire
questionnaires or fills in fake answers to certain questions for various
reasons.
5.4. OBSERVATION METHODS

WHEN IS OBSERVATION SCIENTIFIC?
 Scientific observation is the systematic process of recording the
behavioral patterns of people, objects, and occurrences without asking
respondents.
 The researcher utilizing the observation method of data collection

witnesses and records information as events occur or compiles
evidence from records of past events.
 Observation becomes a tool for scientific inquiry when it:
1. Serves a formulated research purpose
2. Is planned systematically
3. Is recorded systematically and related to more
general propositions rather than being
represented as reflecting a set of interesting
curiosities
4. Is subject to checks or controls on validity and
reliability
WHAT CAN BE OBSERVED?

 A wide variety of information about the behavior of people and objects
can be observed.
 Seven kinds of content can be observed:
o Physical actions, such as work patterns
o verbal behavior, such as conversations;
o expressive behavior, such as tone of voice or facial expressions;
o spatial relations and locations, such as physical distance between
workers and traffic counts;
o temporal patterns, such as the amount of time spent shopping or time
required to perform a work task;
o physical objects, such as finished goods inventory; and verbal and
pictorial records,
The Nature Of Observation Studies
 Business researchers can observe people, objects, events, or other
phenomena by assigning the task to human observers or by using
machines designed for specific observation task
 Human observation is commonly used when the situation or behavior
to be recorded is not easily predictable in advance of the research.
 The major advantage of observation studies over surveys is that the
data do not have distortions, inaccuracies, or other response biases
due to memory error, social desirability, and so on.
 The data are recorded when the actual behavior takes place.
Observing Social Settings

 In many situations the purpose of observation will be to summarize,
systematize, and simplify the activities, meaning, and relationships in a
social setting.
 Often, unstructured methods provide the greatest flexibility to the
observer.
What Should Be Observed?

 A general list of common elements that will be of interest in most social
settings follows:
1. The participants:

Who are the participants?
How are they related to one another?
How many are there?
2. The setting can be:

a drugstore,
a busy street intersection,
a factory lunchroom,
a palatial convention hotel
3. The purpose can be:

to compete in a boat race,
to participate in an awards ceremony,
to meet as a committee,
to have fun at a party?
How do the participants react to the official purpose of the situation
4. The social behavior:

what actually occurs?
What do the participants do?
How do they do it?
With whom and
with what do they do it?
 With respect to behavior, one usually wants to know the following:

(a) the stimulus or event that initiated
(b) its apparent objective;
(c) toward whom or what the behavior is directed;
(d) the form of activity entailed in the behavior
(talking, typing, driving a car, gesturing, sitting);
(e) the qualities of the behavior (its intensity, persistence, unusualness,

appropriateness, duration, affectivity, mannerisms);
(f) its effects (for example, the behavior it evokes
from others).
5. Frequency and duration

When did the situation occur?
How long did it last?
Is it unique?
If it recurs, how frequently does it occur?
What are the occasions that give rise to it?
How typical of such situations is the one being observed?
5.5. EXPERIMENTAL RESEARCH

The Nature Of Experiments

 The purpose of experimental research is to allow the researcher to
control the research situation so that causal relationships among
variables may be evaluated.
 The experimenter therefore manipulates a single variable in an
investigation and holds constant all other relevance extraneous
variables.
 Experiments differ from other research methods in terms of degree of
control over the research situation.
 In a typical experiment one variable (the independent variable) is
manipulated and its effect on another variable (the dependent variable)
is measured, while all other variables that may confound such a
relationship are eliminated or controlled. The experimenter either
creates an artificial situation or deliberately manipulates a situation.
Basic Issues In Experimental Design

Decisions must be made about several basic elements of an
experiment:
(1) manipulation of the independent variable,
(2) selection and measurement of the dependent
variable,
(3) selection and assignment of test units, and
(4) control over extraneous variables.
 Sample Selection and Random Sampling Error, as in other forms of

business research, may occur in experimentation.
Random sampling error may occur if repetitions of the basic
experiment sometime favor one experimental condition and sometimes
the other on a chance basis.
Basic versus Factorial Experimental Designs
In basic experimental designs a single independent variable is
manipulated to observe its effect on a single dependent variable.
 However, we know that complex dependent variables, such as sales,
productivity, preference, and so on are influenced by several factors.
 A simultaneous change in two independent variables such as price and
advertising may have a greater influence on sales than if either
variable is changed in isolation.
Factorial experimental designs are more sophisticated than basic

experimental designs.
 They allow for investigation of the interaction of two or more
independent variables.
 Factorial experiments are discussed in the section on complex
experimental designs later in this chapter.
Field and Laboratory Experiments

 A business experiment can be conducted in a natural setting (field
experiment) or in an artificial setting, one contrived for a specific
purpose (laboratory experiment).

 In a laboratory experiment the researcher has almost complete control
over the research setting.
For example, subjects for a laboratory experiment investigating

whether increasing performance goal difficulty will increase productivity
are recruited and brought to a university office, a research agency's
office, or perhaps a mobile unit designed for research purposes where
they will not be interrupted. Of course, the instructions for the different
experimental groups are manipulated by varying the performance
goals' level of difficulty.
5.6. SAMPLING DESIGNS AND SAMPLING PROCEDURES
Probability Versus Nonprobability Sampling

 In probability sampling every element in the population has a known
non probability of selection.
 In nonprobability sampling the probability of any particular member of
the population being chosen is unknown.
 It should be noted that there are no appropriate statistical techniques
for measuring random sampling error from a nonprobability sample.
 Thus projecting the data beyond the sample is statistically
inappropriate.
NONPROBABILITY SAMPLING
 In nonprobability samling some elements of the population are
consciously excluded from being included in the sample
Convenience Sampling
 Convenience sampling (also called haphazard or accidental sampling)
refers to the procedure of obtaining units or people who are most
conveniently available.
 Researchers generally use convenience samples to obtain a large
number of completed questionnaires quickly and economically.
 Used when there is homogeneity in the characteristics of the target
population.
Judgment or purposive sampling

 A sampling technique in which an experienced individual selects the
sample based upon his or her judgment about some appropriate
characteristic required of the sample members.
Quota Sampling
 The researchers may wish to ensure that each occupational category
is proportionately included in the sample. Strict probability sampling
procedures would likely underrepresent certain jobs and overrepresent
other jobs.
 If the selection process were left strictly to chance, some variation
would be expected.
 The purpose of quota sampling is to ensure that the various subgroups
in a population are represented on pertinent sample characteristics to
the exact extent that the investigators desire.

Snowball Sampling
 Snowball sampling refers to a variety of procedures in which initial
respondents are selected by probability methods, but in which
additional respondents are then obtained from information provided by
initial respondents.
 This technique is used to locate members of rare populations by
referrals.
PROBABILITY SAMPLING
 All probability samples are based on chance selection procedures.
 This eliminates the bias inherent in the nonprobability sampling
procedures
 Randomness refers to a procedure the outcome of which cannot be
predicted because it is dependent on chance.
 The procedure of randomization should not be thought of as unplanned
or unscientific.
 It is the basis of all probability sampling techniques.
Simple Random Sampling

 Simple random sampling assures that each element in the population
has an equal chance of being included in the sample.
 Drawing names from a hat or selecting the winning raffle ticket from a
large drum is typical of simple random sampling.
 The sampling process is simple because it requires only one stage of
sample selection (in contrast to more complex probability samples).
Systematic Sampling
 An initial starting point is selected by a random process, and then
every nth number on the list is selected.
 Although this procedure is not actually a random selection procedure, it
yields random results if the arrangement of the items in the list is
random in character.
 The problem of periodicity occurs if a list has a systematic pattern
 Periodicity is rarely a problem for most sampling in business research,
but researchers should be aware of its possibility.
 The sampling interval can also be estimated by dividing the target
population by the sample size
Stratified Sampling
 The usefulness of dividing the population into subgroups or strata that
are more or less equal on some characteristic.
 The first step of choosing strata on the basis of existing information,
such as classification of retail outlets' size based on annual sales
volume, is the same for both stratified and quota sampling.
 In stratified sampling a sub sample is drawn utilizing a simple random

sample within each stratum. This is not true with quota sampling.
 A smaller standard error may be the result of this stratified sample
because groups are adequately represented when strata are
combined.
Proportional versus Disproportional Sampling

 If the number of sampling units drawn from each stratum is in
proportion to the relative population size of the stratum, the sample is
proportional stratified sample.
 Sometimes a disproportional stratified sample will be selected to
ensure an adequate number of sampling units in every stratum.
 In a disproportional stratified sample, sample size for each stratum is
not allocated on a proportional basis with the population size, but by
analytical considerations.
 As variability increases, sample size must increase to provide accurate
estimates.
Cluster Sampling
 The purpose of cluster sampling is to sample economically while
retaining the characteristics of a probability sample.
 Cluster samples are frequently utilized when no lists of the sample
population are available and the sampling units are groups or clusters.
Ideally, a cluster should be as heterogeneous as the population itself: a
mirror image of the population.

CHAPTER VI
DATA COLLECTION
6.1. Primary versus Secondary Data

 The two major sources of data are primary & secondary.
 Primary data is data collected from the original sources and are
collected especially for the task at hand by the researcher.
 Often both of them are used together to complement each other.
 The choice between primary and secondary data mainly depends

upon:
o the nature, objectives, and scope of enquiry,
o availability of time & money;
o degree of accuracy desired
o the status of the investigator.
6.2. Secondary data

 Secondary data are data gathered and recorded by someone else prior
to (and for purposes other than) the current needs of the researcher.
 Secondary data are usually historical, already assembled
Advantages
 Can be found more quickly and cheaply
Limitations
 Does not meet ones specific needs of the research
 Differences in definitions such as units of measure, and time period
involved.
 Difficult to assess their accuracy because little is known about the
research design
 It is often out-of date.
Sources of Secondary Data

Internal and Proprietary Data
 Information recorded from routine source documents, such as sales
invoices
 Database in administrative and accounting systems
o Sales volumes by product and region can be identified;
o information related to orders received, back orders, and unfilled orders
can be identified;
o Aggregating or disaggregating internal data
o Reports, employee complaints, personnel records-and any other forms
or records that a company may keep.
Common External Sources of Secondary Data

 Generated by an entity other than the researcher's organization.
 Classifying by the nature of the producer of the information yields five
basic sources:
o books and periodicals,
o government sources,
o trade association sources,
o media sources, and
o commercial sources.
Primary Data
Strengths of primary data over secondary data
 Gives data in greater details compared to secondary source,
 Less possibility of mistake due to errors in transcription
 Includes definition of terms and units used
 Includes a prescription of the procedure used in:
o selecting the sample,
o determining the sample size, and
o collection the data that affect the accuracy, validity, reliability and
representativeness of the data.
 Flexible to meet:
o resources requirements
o the scope and objective of the study.
The most common methods of collecting primary data are following.

 Questionnaires
 Interviews
 Focus Group Discussions
 Observation
6.3. QUESTIONNAIRES
A Survey is Only as Good as the Questions It Asks
 Questionnaire design is one of the most critical stages in the survey
research process.
 Inexperienced researchers believe that constructing a questionnaire is
a simple task.
 Amateur researchers find it easy to prepare a short questionnaire in a
matter of hours.
 Assuming that people will understand the questions is a common error.
 People simply may not know what is being asked.
 They may be unaware of the product or topic of interest, they may
confuse the subject with something else, or
 the question may not mean the same thing to everyone interviewed.
Questionnaire Design: An Overview Of The

Major Decisions
 Relevance and accuracy are the two basic criteria to be met if the
questionnaire is to achieve the researcher's purposes.
 A researcher who plans systematically to design a questionnaire will

be required to make several decisions
1. What should be asked?

2. How should each question be phrased?
3. In what sequence should the questions be arranged?
4. What questionnaire layout will best serve the research objectives?
5. How should the questionnaire be pretested? Does the questionnaire
need to be revised?
WHAT SHOULD BE ASKED?

 Determine the content of the questions by referring to the:
o Problem definition
o Research objectives
o Literature covered
o The communication medium of data collection-telephone interview,
personal interview, or self-administered survey-will have been
determined.
o Forward linkage that influences the structure and content of the
questionnaire.
 As the questionnaire is being designed, the researcher should be
thinking about the types of statistical analysis that will be conducted.
Questionnaire Relevancy
 A questionnaire is relevant:
o if no unnecessary data is collected and
o if the information that is needed to solve the business problem is
obtained.
 Asking the wrong or an irrelevant question is a pitfall to be avoided
 To ensure information relevancy, the researcher must be specific
about data needs, and there should be a rationale for each item of
information.
 When planning the questionnaire design, it is essential to think about
possible omissions:
 Is information being collected on the relevant demographic and
psychographic variables?
 Are there any questions that might clarify the answers to other
questions?
 Will the results of the study provide the solution to the manager's
problem?
Questionnaire Accuracy
 Accuracy means that the information is reliable and valid
 But no step-by-step procedure to ensure accuracy
 Accuracy is strongly influenced by the researcher's ability to design a
questionnaire that facilitates recall and that will motivate the
respondent to cooperate.

 there is a higher probability of unbiased answers:
 when the subject of the research is interesting
 if questions are not lengthy, difficult to answer, or
 if questions are not ego-threatening,.
Question wording and sequence substantially influence accuracy.
PHRASING QUESTIONS
 There are two ways to phrase questions based on the amount of
freedom respondents are given:
o Open ended
o Closed ended
Open-Ended Response versus Fixed-Alternative Questions

Open ended questions
 Pose some problem or topic and ask the respondent to answer in his
or her own words.
What things do you like most about your job?

What names of local banks can you think of offhand?
What comes to mind when you look at this advertisement?
Fixed Alternate Questions

 The fixed-alternative question or "closed question," provides
respondent a given specific, limited alternative responses and asked to
choose the one closest to his or her own viewpoint.
For example:
Did you work overtime or at more than one job last week?
Yes____ no______
Compared to ten years ago, would you say that the quality of most
products made in Japan is higher, about the same, or not as good?
Higher _____ About the same _________ Not as good -
_________
In management, is there a useful distinction between what is legal and
what is ethical?
Yes________ No _________
 Open-ended response questions are most beneficial in exploratory

research, especially if the range of responses is not known.
 Respondents are free to answer with whatever is uppermost in their

thinking.
 Open-ended response questions are especially valuable at the
beginning of an interview.
 They are good first questions because they allow respondents to warm
up to the questioning process.
 The cost of coding, editing, and analyzing open ended is quite ex-
tensive.

 Another potential disadvantage of the open-ended response question
is that interviewer bias may influence the responses.
 There is a tendency for interviewers to take short cuts in recording
answers, and a few words that are different from the respondents'
 Contrasted with open-ended questions, fixed-alternative questions
require less interviewer skill, take less time, and are easier for the
respondent to answer.
Types of fixed-alternative questions.

 The simple-dichotomy or dichotomous-alternative question requires the
respondent to choose one of two alternatives.
 The answer can be a simple "yes" or "no" or a choice between "this"
and "that." For example:
Did you make any long-distance calls last week?
Yes No
The determinant-choice question requires the respondent to choose

one-and only one-response from among several possible alternatives.
For example:
Please give us some information about your flight. In which section of

the aircraft did you sit?
First class Business class Coach class
The frequency-determination question is a determinate-choice

question that asks for an answer about general frequency of
occurrence. For example:
How frequently do you watch the MTV television channel?
Every day. . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . ..
5-6 times a week. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2-4 times a week. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Once a week. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
Less than once a week. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Never. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .
 Attitude rating scales are also fixed-alternative questions.
The checklist question

 Allows the respondent to provide multiple answers to a single question.
 The respondent indicates past experience, preference, and the like
merely by checking off an item.
A typical checklist follows:
Please check which of the following sources of information about

investments you regularly use, if any.
 Personal advice of your broker(s)

 Brokerage newsletters
 Brokerage research reports
 Investment advisory service(s)
 Conversations with other investors
 Reports on the Internet
 None of these
 Other (please specify)
Reducing complexity by providing fewer alternatives

How satisfied are you with your community?
1. Very satisfied
2. Quite satisfied
3. Somewhat satisfied
4. Slightly satisfied
5. Neither satisfied nor dissatisfied
6. Slightly dissatisfied
7. Somewhat dissatisfied
8. Quite dissatisfied
9. Very dissatisfied
Revised:
How satisfied are you with your community?
Would you say you are
Very satisfied. . . . . . . .. . . . . . . . . . . . . . . . . . .1
Somewhat satisfied. . . .. . . . . . . . . . . . . . .. . . . 2
Neither satisfied nor dissatisfied. . .. . .......... . . . 3
Somewhat dissatisfied. . . . . . . . . . . . . . . . . . . .4
Very dissatisfied. . . . . . . . . . . . . . . . . . . .. . . . . 5
THE ART OF ASKING QUESTIONS or

Principles of Questionnaire Design
1. Avoid Complexity: Use Simple, Conversational Language
 Words used in questionnaires should be readily understandable to all
respondents.
Eg When effluents from a paper mill can be drunk and exhaust from
factory smokestacks can be breathed, then man will have done a good
job in saving the environment. . . . What we want is zero toxicity; no
effluents?
2.Avoid Leading and Loaded Questions

 Leading questions suggest or imply certain answers.
Many people are using dry cleaning less because of improved wash-
and-wear clothes. How do you feel wash-and-wear clothes have

affected your use of dry cleaning facilities in the past four years?
- Use less - No change - Use more
 Loaded questions are slanted with social desirability or biased with

emotional charge.
Eg Where did you rank academically in your high school graduating
class?
Top quarter 2nd quarter 3rd quarter 4th quarter
 When taking personality tests, respondents frequently are able to

determine which answers are most socially acceptable, even though
the answers do not portray the respondents' true feelings.
3.Avoid Ambiguity: Be as Specific as Possible

 Indefinite words such as often, occasionally, usually, regularly,
frequently, many, good, fair, and poor are vague and general.
4.Avoid Double-Barreled Items

 A question covering several issues at once
 It's easy to make the mistake of asking two questions rather than one
A survey, by a university library, asked:

Are you satisfied with the present system of handling "closed-reserve"
and "open-reserve" readings? (Are enough copies available? Are the
required materials ordered promptly? Are the borrowing regulations
adequate for students' use of materials?)
- Yes _No
5.Avoid Making Assumptions

Consider the following question:
Should ABC Company continue its excellent gift-wrapping program?
Yes No
 The researcher should not place the respondent in that sort of bind by
including an implicit assumption in the question.
6. Avoid Burdensome Questions That May Tax the Respondent's

Memory
WHAT IS THE BEST QUESTION SEQUENCE?

 When the opening questions are
interesting,

simple to comprehend, and
easy to answer,
respondents' cooperation and involvement can be maintained throughout the
questionnaire.
 Asking easy-to-answer questions teaches respondents their role and allows
them to build confidence.
 If respondents' curiosity is not aroused at the outset, they can become
disinterested and terminate the interview.
 In their attempts to "warm up" respondents toward the questionnaire,
researchers frequently ask demographic or classification questions at the
beginning of the questionnaire.
 This is sometimes not advisable because asking personal information, such
as income level or education, may be embarrassing or threatening to
respondents.
 It is generally better to ask embarrassing questions at the middle or end of the
questionnaire, after a rapport has been established between respondent and
interviewer.
 It is often recommended to set easy and more general questions at the
beginning and gradually continue to more complex, personal and technical
questions to the latter stages of the questionnaire
WHAT IS THE BEST LAYOUT?

The layout and the physical attractiveness of the questionnaire is of
crucial importance in self-administered mail questionnaires.
Questionnaires should be designed to appear as brief and small as

possible. Sometimes it is advisable to use a booklet-form
questionnaire, rather than a large number of pages stapled together.
HOW MUCH PRETESTING AND REVISING IS NECESSARY?

 Pretesting is used to detect weaknesses in instruments.
 Designers typically test informally in the initial stages with more structure built
into the tests along the way. In this section we discuss field testing of the
instrument.
 Pretests rely on respondent surrogates, or actual respondents for the purpose

of evaluating and refining a measuring instrument.
 Although many researchers try to keep pretest conditions and times close to
what they expect for the actual study, personal interview and telephone
limitations make it desirable to test in the evenings or on weekends to
interview people who are not available for contact at other times.
 There are no general principles of good pretesting, no systematization of

practice, no consensus about expectations, and we rarely leave records for
each other.
 How a pretest was conducted, what investigators learned from it, how they
redesigned their questionnaire on the basis of it these matters are reported
only sketchily in research reports, if at all.
Purposes of Pretesting
There are abundant reasons for pretesting interview schedules and
questionnaires.
 Respondent Interest.
 Meaning and Question Transformation
 Continuity and Flow.
 Question Sequence
 Variability.
 Length and Timing
6.4. Personal Interviews

 Personal interviews are direct communications wherein interviewers in face-
to-face situations ask respondents questions.
 This versatile and flexible method is a two-way conversation between an
interviewer and a respondent.
 Personal interviews may be conducted at the respondent's home or office or
in many other places
Advantages of Personal Interviews

 The opportunity for immediate Feedback
 Probing Complex Answers- complex questions that cannot easily be
asked in telephone or mail surveys can be handled by skillful
interviewers.
 Length of Interview- If the research objective requires an extremely
lengthy questionnaire, personal interviews may be the only alternative
 Complete Questionnaires
 Props and Visual Aids Interviewing
 High Participation.
Interviews may be door-to-door Interviews or Intercept Interviews in Malls and Other

High-Traffic Areas
6.5. Focus Group Discussions

Focus group discussion or interview is an unstructured, free flowing interview with a
small group of people. It is flexible format that encourages discussion of, say, a labor
issue, reactions toward
toward a political candidate, or a new-product concept. Participants
meet at a central location
location at a designated time. The group consists of an interviewer
or moderator and six to ten participants who discuss a single topic.
Focus groups allow people to discuss their true feelings,

feelings, anxieties,
anxieties, and frustrations,
frustrations,
and to express the depth of their convictions in their own words. The primary
advantages of focus group interviews are that they are relatively brief, brief, easy to
execute,
execute, quickly analyzed,
analyzed, and inexpensive.
inexpensive. It must be remembered, however, that a
small discussion group will rarely be a representative sample, no matter how
carefully it is recruited.
The flexibility of group interviews is an advantage, especially when compared with
the rigid format of a survey. Numerous topics can be discussed and many insights
can be gained, particularly those involving the contingencies of behavior. Responses
that would be unlikely to emerge in a survey often come out in a group interview.
If a researcher is investigating a target group to determine who consumes a

particular beverage or why a particular brand is purchased, situational factors must
be taken into account.
account. If the researcher does not realize the impact of the occasion
on which the particular beverage is consumed, the results of the research may be
general and not portray the consumers'
consumers' actual thought process.
Focus groups are often used for concept screening and refinement. The concept
may be continually modified, refined, and retested until management believes that
the concept is acceptable.
The specific advantages of focus group interviews have been categorized as follows:
Synergism:
Synergism: The combined effort of the group will produce a wider range of informa -
tion, insights, and ideas than will the accumulation of separately secured responses
of a number of individuals.
Serendipity:
Serendipity: It is more often the case in a group than in an individual interview that
some idea will drop out of the blue. The group also affords the opportunity to
develop the idea to its full significance.
Snowballing:
Snowballing: A bandwagon effect often operates in a group interview situation. A
comment
comment by one individual often triggers a chain of responses from the other
participants.
Stimulation:
Stimulation: Usually, after a brief introductory period, the respondents want to
express their ideas and expose their feelings as the general level of excitement
about the topic increases.
Security:
Security: In the well-structured group, the individual can usually find some comfort
in the fact that his or her feelings are similar to those of others in the group, and that
each

The Moderator
It is the moderator's job to make sure that everyone gets a chance to speak and to
ask questions
questions to clarify topics that have been introduced into the discussion. The
moderator's job is to develop a rapport with the group and to promote interaction
among its members. The combined effort of the group is likely to produce a wider
range of information, insights, and ideas than a number of personal interviews would
provide. The moderator should be someone who is really interested in people, who
listens carefully to what others have to say, and who can readily establish rapport
and gain the confidence of people and make them feel relaxed and eager to talk.
Careful listening by the moderator is especially impor tant, because the group
interview's purpose is to stimulate spontaneous responses. The moderator's role is
also to focus the discussion on the problem areas of concern. When a topic is no
longer generating fresh ideas, the effective moderator changes the flow of the
discussion. The moderator does not give the group total control of the discussion,
but normally
normally has prepared questions on topics that are of concern to management.
However, the timing of these questions and the manner in which they are raised are
left to the moderator's
moderator's discretion.
Shortcomings of Focus Group Discussions
The shortcomings of focus groups are similar to those of most qualitative research
techniques,
techniques, and they are discussed at the end of this chapter. However, a specific
shortcoming of focus groups should be pointed out here. Without a sensitive and
effective moderator, a single, self-appointed participant may dominate the session.
Sessions that include a dominant
dominant participant may be somewhat abnormal.
Participants may react negatively toward the dominant member, causing a "halo"
effect on attitudes toward the concept or the topic of discussion.
CHAPTER VII
DATA PROCESSING AND PRESENTATION
Data processing involves the transformation of the raw data in to some processed
form to facilitate analysis. A careful and systematic processing will highlight the
important characteristics of the data, facilitates comparisons and render it suitable
for further statistical analysis and interpretations. Data processing which includes
editing, coding, classification and tabulation is an intermediate stage between
the collection of data and their analysis and interpretation.
7.1 Editing
Editing is the first stage to transform data in to information with the intention of
facilitating coding. Editing usually focuses in two areas: editing for consistency and
editing for completeness.
After the data are collected, the next step is to edit the filled questionnaires. In many
cases it is not possible to cheek all schedules. In such a case a sample or required
size is sufficient to ascertain the degree of accuracy of filled data. The duty of editing
the questionnaire must be entrusted to honest, efficient and sincere editors who are
committed to the job. The editors are required to check the filled questionnaires in
the following respects.

Editing For Consistency
The data are to be edited by editors for consistency. They should see whether
answers to questions supplied by informants are consistent or not.
Editing For Completeness

Checking whether all the questions in a questionnaire are answered
Editing For Accuracy

The accuracy and the reliability of the findings depend upon accuracy of the data
collected, therefore, the editor has to examine whether all questions are answered
correctly or not.
Editing For Uniformity

The problem under study can be rationally analyzed when there is uniformity in the
answers of the questions supplied by different informants. Uniformity of answers
mean whether all questions are interpreted in the same sense by all informants or
not. If the questions are interpreted in different ways by different informants then the
data supplied becomes heterogeneous. Such data should not be employed for
analysis.
Editing For Computations

It is advised not to ask the investigators or the respondents supplying information to
make any computation. This additional work may give risk to errors. Computations, if
necessary, should always be made by editors or processors.
Consistency
Completeness
Accuracy
Uniforn1ity
Computations
7.2. Coding
After editing the collected data, the next step to follow is coding. Coding refers to
assigning number/digits or letters or both to various responses so as to enable
tabulation of information easy. The purpose of Coding is to classify the answers to a
question into meaningful categories, which is essential for tabulation.
Coding consists in assigning a number of symbols to each answer, which falls in a

predetermined class. Coding means an operation by which data are organized into
classes and number of symbol is given to each item according to the class in which
it falls.
The purpose of coding is to classify the answers to a question in to meaningful

categories, so as to try out their essential pattern. The process involves two distinct

steps. The first is to decide on the categories to be used, the second to allocate
individual answers to them. The set of categories to be used will be referred to as
the coding frame. The set of coding frames covering all the information to be
abstracted from the questionnaires is commonly known as the codebook.
Coding- is the process of identifying and classifying each answer with a numerical
score or other characteristic symbol cde construction is two types: pre-coding and
post coding.
Post-co Cling is determination of a framework for classifying responses to questions
where coded categories cannot be established before data collection. Pre-coding is
classifying responses using numerical scales in the questionnaire itself before e data
collection.
7.3. Classification
Once the data is collected and edited the first task of the statistician is the
organization of the figures is such a form that their significance, for the purpose at
hand, may be appreciated that comparison with masses of similar data may be
facilitated, and that farther analysis may be possible. This is done through
classification and tabulation.
But before tabulating the data into different homogeneous classes, it is necessary to
sort out the relevant and significant features from the irrelevant and insignificant
ones.
The process of arranging the data into groups or classes according to

resemblances and similarities is technically called classification.
Classification is the process of arranging data into sequences and groups according
to their common characteristics, or separating them into different but related Parts.
For example of classifications the number of students registered in Mekelle
University during the academic year 2002/2003 may be classified on the basis of
any of the following criterion.
 Sex
 Age
 The zone to which they belong
 Religion.
 Different faculties like Business; Education, Economics and Development
Studies, Information Technology, etc.
Types of classification
The raw data are not digestible; therefore, it must be classified for understanding the
salient features of the data. There are limitless ways of classifying the data.
The main classifications are:
1. Classification based upon differences in kind.
2. Classification based upon differences in degree
of a given characteristic.
3. Geographical classification
4. Chronological classification
5. Alphabetical classification

7.4. Tabulation
Tabulation involves the orderly and systematic presentation of numerical data in a
form designed to elucidate the problem under consideration.
Objectives of Tabulation
Tabulation is a process, which helps, in understanding complex numerical facts. The
purpose of table is to summaries a mass of numerical information and to present it in
the simplest possible £Tom consistent with the purpose for which it is to be used.
Tabulation has the following objectives:
To clarify the objectives of investigation

The function of tabulation in the general scheme of statistical investigation is to
arrange in easily accessible form the answer with which the investigation is
concerned. The presentation of data in table makes the problem under study simple.
To clarify the characteristics of data

A table presents facts clearly and concisely, eliminating the need for wordy
explanation. It brings out the chief characteristics of data.
To present facts in the minimum of space

A table presents facts in minimum of space and communicates information in a far
better way than textual material.
To facilitate statistical process

It simplifies reference to data and facilitates comparative analysis and interpretation
of the facts.
Advantages of Tabulation
The tabular presentation of data has several distinct advantages. They are:
It simplifies facts
Economy
Helpful in comparison
Tabulation makes comparison easy. Comparable figures are placed in
Facilitates computation
It helps in computation of different statistical measures. For calculating average,
dispersion, correlation, etc. Data must be presented in tables.
Helps in Reference
Tabulated data are good for reference purposes.
Rules for Tabulations

Rules for tabulation may be divided into two groups.
a) Rules relating to table structure.
b) General rules.
1. Number

Each table should be numbered so that it may be easily identified. The number of
the table should be given at the top, above the title of the table so that it may easily
be noticed.
2. Title
A table should have a complete title as it helps in finding the information wanted. A
title should tell in concise language.
 What is the nature of data?

 Where the data are?
 What time period do the data cover?
 How are the data classified?
The titles of the table should be short because long titles are not easy to read. The
wording of the title should be carefully planned so that it may give only one
interpretation.
3. Stub
The designations of the horizontal rows or the data in the table are called stub or
stab items. The complete column of this designation is known as stab. The stab
items should be completed and clear. It is always advisable to condense the stab
items so that they may be written in one line.
4. Caption
The heading of the column is called caption. Caption should be carefully worded and
written in the center at the top of the column. If the different columns are expressed
in different units the definition of the units should be included in the caption.
5. Body
The body of the table contains figures that the table is designed to present to
readers.
6. Source
The source of the data, embodied in the table should be written so that whosoever
uses the data may trace the data to the source without any difficulty. The source
note should give information about the place from which data were obtained. It is
written at the bottom of the table.
CHAPTER VIII
DATA ANALYSIS
8.1. Introduction
Analysis of data refers to seeing the data in the light of hypothesis of research
questions and the prevailing theories and drawing conclusion that are as amenable
to theory formation as possible.
Analysis of the data is a task that calls for the researcher's own judgment and skill.
Proper analysis requires a familiarity with the background of the survey and with all
its stages.
The steps envisaged in the analysis of data vary depending on the types of study.

The more specific the hypothesis, the more specific the action.
The task of analysis is reduced just to getting the appropriate combinations of data
and reading them off against the instructions for verification and falsification of
hypothesis.
Part of analysis is a matter of

working out statistical distribution,
constructing diagrams and
calculating simple measure like averages, measures of dispersion,
percentages, correlation etc.
Analysis means verification of hypothesis under ideal conditions of precision and
simplicity. Analysis presents very few problems since the statement of the
hypothesis and the elaboration of the experimental design will automatically provide
for the analysis of the data. The problems raised by the analysis of data are directly
related to the complexity of the hypothesis.
8.2. Characteristics of Data Analysis

Following are the main characteristics of Analysis of data:
 Analysis of data is one of the most important aspects of researchand it is
highly skilled and technical job, it would be carried out by the researcher
himself or under his close supervision. The researcher should also possess
judgment skill, ability of generalization and should be familiar with the
background objects and hypothesis 0; study.
 Data, fact and figures are silent and they never speak for themselves but they
have complexities. It is only by organizing analyzing and interpreting the
research data that we can know their important features, inter-relationship
and cause effect relationship. The trends and sequences inherent in the
phenomena elaborated by means of generalization.
 The data to be analyzed and interpreted should (I) be reproducible (II) be

readily disposed to quantitative treatment, and (III) have significance for some
systematic theory, and can serve as a basis for broader generalization.
 If the data are collected according to vague clues rather than according to the
specific hypothesis, in such cases the data are analyzed inductively or
invested during the process and not by means of any prescribed set by rules.
 The task of analysis in incomplete without interpretation. ill fact, analysis of

data and interpretation data are complementary to each other. The end
product of analysis is the setting up of certain general conclusions while the
interpretation deals with what these conclusions really mean.
 Since analysis and interpretation of data are interwoven the interpretation

should more properly be conceived of as a special aspect of analysis rather
than a distinct operation. interpretation is the process of establish relationship
between variables, which are expressed in the findings and why such
relationship exists.

 For any successful study the task of analysis and interpretation should be
designed before the data are actually collected with the exception of
formularize studies where the researcher had no idea as to what kind of
answer he wants. Otherwise there is always a danger of being too late and
the chances of missing important relevant data.
The Place of Statistics in Social Research

A knowledge of basic statistical concepts and techniques is necessary for an
intelligent understanding of the generality of life.
Statistical methods are very useful for the research purposes in the following situations.
 When a large number of quantitative data needs simplification, analysis and
verification.
 When estimates are needed for some unknown events on the basis of available
information.
 When the data collected are very large in numbers, it becomes practically very
difficult to examine very individual in detail. Under such circumstances, conclusions
are derived with the help of sampling techniques, which now occupy a place of
central significance among statistical techniques.
 When the research problem is affected by multiplicity of causes and the use of
experimental method is not possible, then in such a case the only possible method is
statistical method.
 When the problem under study is phenomena of uncertainty, then the use of
statistical method becomes necessary. Prof. Ya-Lun-Chous has rightly remarked,
"Statistical as a method of decision-making is the face of uncertainty on the basis of
numerical data and calculated risks.
8.3 Analysis of Secondary Data and Primary Data
There are two aspects of scientific research. The first of these is the appearance of
an anomalous empirical regularity or the absence of an expected regularity. Such
instance required analysis not anticipated by the original design. Similar to this is the
use of data gathered for one purpose, for quite another problem. Both these
represent what is called secondary analysis?
From a very 'pure' experimental point of view such analysis are considered to yield
answer which are 'plausible' but not capable of being stated in the customary
'probability' terms of science.
However, secondary analysis is not only common but necessary and it is certainly of
great value, even if produces no more than plausible statements to serve as
hypotheses for subsequent verification in more stringent terms.
Problems of data analysis involve all the questions raised in research design, for
secondary analysis to involve the designing and redesigning of substitutes for the

controlled experiment. This indicates that there are two types of questions about
analysis, which may be raised. One of them relates to the techniques of representing
the data and the other to the methods of logically ordering them so that questions
can be raised and answered.
The basic ingredient of any analysis is the scientific method and the testing of
hypotheses. However, in case studies, hypothesis may some-times be absent. In
normal circumstances, the statement of a hypothesis and an elaboration of the
experimental design would provide for a rational analysis of the data.
An analysis would necessitate first the tabulation and presentation of the data in the
most intelligible, attractive, appropriate and comprehensible form. It would enable
the researcher to identify relationship and to make inductions or deduction, wherever
necessary. On the basis' of statistical tables it is possible to present the facts in the
form of diagrams, graphs, pictograms, and statistical and mathematical models.
Representation and analysis would become easier with the help of these tools. The
analysis of data would throw light on the various problem areas, enabling the
researcher to identity ways and means of arriving at solution The problems raised in
the analysis of data are directly related to the complexity of the hypothesis.
Research is often based on observation while the analysis enables him the
researcher to arrive at final observations and conclusions.
Statistical and mathematical representations have attained prominence in research

analysis in recent times. Frequency distribution, tabulation, coefficient of variation,
corre3ation, regression, standard deviation, econometric models and various other
mathematical techniques are usually employed in research and managerial analysis.
Percentages, ratios and proportions are also of very common use in any research
analysis, which simplify the process of comparison. The percentage is always useful
in putting qualitative characteristics in numerical forms making it possible for the
researcher to compare the various qualitative and quantitative aspects in the
observation.
In order to make a logical generalization one may observe that there are three
phases in the process of managerial analysis. There are:
 The first phase lays the foundation for the actual analysis
 The second phase is the action leading to a definite analysis.
 The third phase is the evaluation phase, which investigates the validity of the
recommended course of action.
8.4. Types of statistical Methods

Statistical Methods are the principles employed for the description, analysis and
interpretation of the data. They may be classified into two categories, namely;
a.Descriptive Statistical Methods

Those methods, which are employed primarily to describe what has been observed,
are called descriptive statistical methods. Their role purpose is to describe the

behavior of a variable and to attempt is made to analyze either by tables or by
diagrams to describe the behavior of the data.
b. Analytical statistical Methods

Those methods, which are employed to analyze and to interpret what has been
observed, are called analytical statistical methods. These two categories of
statistical methods are not mutually exclusive
but analytical statistical methods are based upon and made use of descriptive
methods for analyzing and interpreting data for example, a research workers may be
entrusted with the job of describing as well as analyzing and interpreting the problem
under study.
8.5. Uses of Statistical Methods

Statistical Methods are employed, almost, in every branch of knowledge. They are
valuable tools in the hands of research workers and are use to cast light upon the
behavior of a variable of variables under study. The following are the main uses of
statistical methods:
1.Statistical methods are employed to throw light upon the situation and to probe the
unknown.
2.Statistical methods enable use to reduce a mass figure to something that is of
manageable size and can be easily understood and interpreted..
3.Statistical methods are employed for comparing two or more series.
4.Statistical methods enable us to draw inferences or conclusions from the data

about the behavior of a variable of variables under study.
Misuses of Statistical Methods

In spite of the great utility of statistical methods, the methodology of statistics is
sufficiently misunderstood to give rise to a number of humorous comments about
statistics and statisticians. For example, "a statistician is a person who draws a
mathematically precise line from an unwarranted assumption to a foregone
conclusion. Some have a conclusion already decided upon and then use statistical
methods to prove their findings. Due to the wrong applications of statistical methods,
statisticians have been have been classified third in the hierarch of liars. "There are
liars, damned liars and statisticians." Another criticism leveled against statistics and
statistical methods is, "many people use statistics as drunken man uses a lamp-post
as a means of support, rather than of illumination."
Such comments refer to the misuse of statistical methods or misunderstanding of

statistical methods. But the fault lies not with the statistical methods but with their
applicants. For example, if a man cuts his head with sword, the fault lies not with the
sword but with the man.
The remedy lies in better understanding of statistical methods and by trained

persons for describing, analyzing and interpreting the behavior of variables.
To quote Croxton and Cowden, "without and adequate understanding of the

statistical methods, the investigator in the social sciences may be like the blind man
groping in a dark room for a black cat that is not there."
8.6. Basic Statistical Techniques

While analyzing the data, researchers usually make use of many simple statistical
devices. Therefore, acknowledge of basic statistical techniques used in statistical
analysis to the phenomena under study is inevitable. In fact a thorough knowledge of
at least the fundamentals of statistics is an indispensable part of the equipment of
the researcher in the field of social science. Various statistical methods used in
research are listed below:
Collection, Classification and Tabulation of Data

It helps in quantification and objective valuation of social phenomena. It presents
facts in a proper form and reduces complexity of data. The first step in a statistical
inquiry is the collection of data relating to the problem under study when a mass of
data has been gathered, it is necessary to arrange the material in some sort of
concise and logical order. The procedure is referred to as classification and
tabulation of data.
Diagrammatic and Graphic Representation

Another important convincing, appealing and easily understood method of
presenting the statistical data is the use of diagrams and graphs. They give a bird's
eye view of a given set of numerical data. They register a meaningful impression on
the mind almost before we think. They also save a lot of time as a very little effort is
required to grasp them and draw meaningful inferences from them. They highlight
the salient features of the collected data, facilitate comparisons among two or more
sets of data and enable us to be study the relationship between them more readily.
Graphs reveal the trends, if any, present in the data more vividly than the tabulated
numerical figures.
Averages
Averages hold a very important place in all types of statistical work because they
describe the inherent characteristics of a frequency distribution in a concise manger
and help in comparative study of different distributions.
Averages are different kinds but we will consider only five, namely, arithmetic mean,
median, mode, geometric mean and harmonic mean.
i) Arithmetic Mean-Arithmetic mean is most widely used in statistical research

because it is easy to understand and calculate. If the measure of each item in a
series is known the mean can be derived by adding the measures together and
dividing by the number items. In economics, it is used where all the items are of
equal importance. It takes into consideration of all items from first to last and is
considered to be more representative.
ii) Median- The median is another simple average or measure of central tendency. It is

more frequently used where the extreme item is to be eliminated. Median is that
value of variable, which divides the group into two equal parts, one part comprising
all the values greater and the other all values less than median. Thus the median is
the value of the variable, which exceeds and is exceeded by the same number of
observations. It is very useful in the case of skewed distribution such as the
distribution incomes and wealth.
iii) Mode-In a simple series the mode is the size of the measurement that occurs most
frequently. In case of frequency distribution it is the value of the variable
corresponding to the maximum frequency. It is very easy to calculate and
understand. It can also be estimated graphically from a histogram. It is not at all
affected by extreme observations and as such is preferred to arithmetic mean while
drawing with extreme observations. Whenever complete data is not available, mode
is common form of average to be used. It is not necessary to know the size of all
units. Even if an approximate point of density is known mode can be easily located.
It is directly applicable to large number of items. In this respect it is much superior to
all other averages.
iv) Geometric Mean- Geometric mean is more mathematical and complicated than
mean, median or mode. Geometric mean of different items of a series is that root of
the product of the item values as there are items. In short, it is the root of the product
of all the item values. It is mostly used in such cases where the data has to be put
further mathematical analysis, It is especially suitable in those cases where less
importance is to given to large measurements. It is used in Economics in finding the
rate of growth of population, compound rate of interest, rate of depreciation of
machinery and equipment, cost benefit analysis etc.
v) Harmonic Mean- It is reciprocal of the arithmetic mean of the reciprocals of the

given observations, It is rigidly defined, based on all observations and is amenable
to further algebraic treatment. It can be used in phenomena involving time, rate and
price. It is the most suitable average when it is desired to give greater weight to
smaller observations and less weight to the larger ones.
Index Number
Index numbers are indicators which reflect the relative changes in the level of a
certain phenomenon in any given period ( or over a specified period of time) called
the current period with respect to its value in some fixed period called the base
period selected for comparison. The technique of index number is used to study all
such problems which are capable of qualitative expression and which change with
change with change in time. It should be noted that index numbers measure only
relative changes. Index numbers also help in forecasting the future trends I the level
of phenomena. For example, index number of prices tells us about the changes in
the general price level of a country and also predicts about future trends in prices.
Cost of living index numbers tell us about the change in the cost of living of different
groups of people in a society.
Measures of Variability
Another important aspect in statistics is variability. The mean median and mode give
only one essential characteristics of a frequency distribution-its typical size of central

tendency. Furthermore, it is possible for several distributions to have same average
yet be markedly different in variability,
In some distributions the cases may be widely very closely around the average and
in other they may be widely scattered. It is, therefore, very important to determine
the spread of the individual values on either side of their central tendency. Important
measures of absolute variability are mean deviation and standard deviation and
relative variability we calculate co-efficient of variation.
i) Mean Deviation- Mean deviation is the arithmetic mean of the deviation of the
individual values from the average of given data. Mean deviation is based on all the
observations and is a good measure of dispersion. The averaging of the a solute
deviations from the average removes the irregularities in the distribution and thus
mean deviation provides an accurate and true measure of dispersion.
ii) Standard Deviation- The standard deviation provides a more refined and
statistically important measure of variability than the mean deviation. It is defined as
the positive square root of the arithmetic mean of the squares of the deviations of
the given observations from the arithmetic mean. It is least affected by fluctuations of
sampling. It is always computed from the mean whereas the mean deviation may be
compared from the mean, the median or sometimes the mode.
iii) Co-efficient of variation- This measure, co-efficient of variation is the relative

variation in mean, whereas the standard deviation is the total variation in the mean.
For comparing the variability, homogeneity, stability, uniformity and consistency of
two series, the co-efficient of variation is calculated. The series having greater co-
efficient of variation is said to be more variable than the other series having less co-
efficient of variations.
Skewness
Skewness is a measure that refers to the extent of symmetry or asymmetry in a
distribution. It is used to describe the shape of a distribution.
Kurtosis
A measure of kurtosis indicates the degree to which a curve of a frequency
distribution peaked or flat-topped.
Moments
In statistics it is used to describe the peculiarities of a frequency distribution. Using
moments one can measure the central tendency of a set of observations their
scatteredness, i.e dispersion, skewness, kurtosis of curve, etc.
Correlation
When a change in one phenomena is accompanied by a similar or opposite change
in some other phenomena, it is called correlation. Correlation is a statistical
technique used for analyzing the behaviour of two or more variables. It measures the
degree and the direction of sympathetic movements ranges between 0 and :I:: 1.
The direction of change is indicated by plus or minus signs. The former refers to the
sympathetic movement in the same direction and the latter in opposite direction.
According to Croxton and Cowden, " When the relationship is of a quantitative

nature the appropriate statistical tool for discovering and measuring the relationship
and expressing it in brief formula is known as correlation."
In economic theory and business studies relationship between Various variables is

studied. The correlation analysis helps in deriving precisely the degree and direction
of such relationships. The use of correlation in economic theory has been explained
by W.A. Neiswanger in the following words." Correlation analysis contributed to the
understanding of economic behaviour aids in locating the critically important variable
on which others depend may reveal to the economist the correlation by which
disturbances spread and suggest to him the paths through which stabilizing forces
may become effective." The predication based on correlation analysis is more
reliable and near to reality.
Association of Attributes
The problem of association is basically that of correlation but the only difference
between them is in their quantitative and qualitative approach. The attributes are the
qualitative characteristics as against the variables, which refer to quantities or size
magnitudes of a phenomena. Thus the correlation deals with the variables, which
may be numerically stated while the association of attributes is concerned with the
attributes, which are not amendable to gradual measurement.
Number of production units, wages of the workers are the examples of quantitative
characteristics of a variable while the classification of production into defective and
non-defective are qualitative characteristics of a variable. Measures of association
between attributes are limited to comparisons of predictability of a variable when
association with another variable is taken into account as compared with the
predictability when no association is utilized. A co-efficient that performs this function
may be considered to be a quantitative coefficient but more precisely should be
called a co-efficient relative predictability.
Regression Analysis
Regression analysis the estimation or prediction of the unknown value of one
variable from the known value of the other variable. In regression analysis there are
two types of variables. The variable whose value is influenced or is to be predicted is
called dependent variable' and the variable, which influences the values or is used
for prediction is called independent variable. The regression analysis for studying
more than two variables at a time is known as multiple regression. The prediction is
based on average of relationship derived statistically by regression analysis. In the
words of M.M Glair, "regression is the measure of the average relationship between
two or more variables in terms of the original units of the data."
Regression is one of the very important statistical tools, which is extremely used in
almost all sciences-natural, social and physical. It is especially used in business and
Economics to study the relationship between two or more variables that are related
causally, and for estimation of demand and supply curves, cost functions, production
and consumption functions, etc. Regression is always very useful in model buildings.

Analysis of time Series
A time series is an arrangement of statistical data in accordance with its time of
occurrence. If the values of a phenomena are observed at different periods of time,
the values so obtained with show appreciable variations. Examples of time series
are the series relating to prices, production and consumption of various commodities
agricultural and industrial production, national income etc. Analysis of time series it
useful in administration, planning and evaluation of socio-economic progress as well
as for research in various fields of science and humanities. It also helps in analysis
of a phenomena in terms of the effect of various technological, economic and other
factors on its behaviour over time. It makes more scientific comparison after
considering the various components of the series to know how they have behaved
over a period of time. This series also help in
CHAPTER IX
RESEARCH REPORT WRITING
9.1 Styles and Format of Report Writing

Report Writing is a basic task of the re-searcher, since no research can be
completed without its report. In fact, a research without a report can be considered
as house without a roof. Any amount of observation or data analysis would be in
vain from the managers point of view, if its report is not made available in aid of this
decision making process. Hence, report writing has a pivotal position in research.
This chapter, therefore, examines report writing.
Research Report
A research study culminates in the writing of a report, which is a tool for
communicating the various aspects of the study, viz, the problem or topic
investigated, the method employed to investigate, the objective, scope and
limitations. However, prior to writing the report, its proper planning is essential.
Report planning should take into account such details as defining to problem, the
purpose of the report, tracking of the material collected, identifying the utility of the
report, etc. The ability to write effective reports is one of the most useful skills a
researcher can acquire. In this connection we can say that it as simply as we
possibly can, and this that is, that a report is a communication from someone to
another who wants to use that information. The report may be elaborately formal, it
may be a letter, in a great many organizations, it is simply memorandum: but it is
always planned for use.
9.2 Guidelines in Research Report writing

A few steps may be suggested which would enable the researcher to complete his task of
writing a report clearly and cogently, these step are:
1. Plan the project well in advance; fix the target and the final date of completing
the report.
2. The time for completing data collection and data processing should be well
planned, and implemented (ensure that adequate data are kept ready).

3. The time for report writing should be planned, and the task of report writing
should not be put off till the last minute. At leas one third of the total project
time should be earmarked of this purpose.
4. Select a structure for the report, arrange in group the data, documents,
bibliography, etc in conformity with the structure of the research report,
5. Prepare an outline based on the structure, which should cover the main
points and sub-points in detail.
6. Prepare a rough point-by point skeleton for each chapter theme, and
crystallize the report in a mental exercise, Do not hesitate to discuss the
skeleton with somebody who is well versed in research and writhing, and
who can be taken into confidence.
7. In the event of any doubt, get it cleared by reading, thinking, recollecting and
discussing, before going farther, put everything in a logical sequence.
8. It is always good to the benefit of the guidance of a good guide at all stages.
9. Avoid easy-going and short cut methods and don t hesitate to write an entire
first draft.
10. Put the complete rough draft away for several days unit you can be a fresh
mind to bear up on it. The researcher is then in a position to view it a fresh
and make substantial changes.
11. Revise the draft thoroughly before the report is typed. Do n not hesitate to
eliminate any irrelevant and inappropriate portion.
9.3. CHECKLIST RESEARCH REPORT WRITING
AN OUTLINE OF THE MAJOR COMPONENTS A RESEARCH

REPORT
vi) Cover Page
Title (A Case Study of ..)
Purpose why the Research is conducted
Name and Address of the investigator
Month and Place where the report is written
vii) Acronyms (if any, abbreviations alphabetically arranged))
viii) Table of Contents
ix) List of Tables
x) List of Figures
CHAPTER I
INTRODUCTION
1.1 Background of the study General to specific or Deductive order is
recommended
 Definitions and Concepts Related to the topic
 Global issues and trends about the topic
 Situations in Less Developed Countries or in an industry
 National level
 Regional level
Background of the organization (not more than one page)

1.2 Statement of the Problem (Justification of the study)-
 Facts that motivated the investigator to conduct the research
 Exactly specifying and measuring the gap
 Hard facts or quantitative data about the topic for some previous
years, for example three years
1.3 Research Objectives, Research Questions, and Research Hypothesis
1.3.2 Research Objectives Ends to be met in conducting the research
 This shows what the investigator analyzed and how;
 what comparisons were made and at what level
 General objective- often one statement directly related to the
topic
 Specific Objectives- often 4-8;
i. what the researcher tried to achieve
ii. about s/he wanted in collecting the data;
iii. what the researcher analyzed and compared
1.3.3 Research Questions - Questions to be answered to meet the
research objectives or produce implications for the hypothesis
1.3.4 Research Hypothesis ( Optional) - tentative propositions to be tested in
the research
1.4 Research Methods and Data Collection
1.4.1. Data Type and Source (Decide one of them or both by giving
justifications)
 Qualitative V/s Quantitative ( Give reasons)
 Primary Sources (which methods were used by stating justifiable
reasons
Questionnaires
Interviews
Observations
Focus group discussions, etc.
 Secondary Sources(Which method used by stating justifiable reasons)

and exactly state the sources from which s/he gathered the data
Reports, manuals, Internal publications, data base systems Journals
and Publications for assessing existing findings and internet Books for
assessing theories and principles related to the topic etc.
1.4.2. Study design
 Census Vs Survey(Which one was used and why)
 Survey design (the survey designs be used by
investigator clearly stating the reasons for your decision
 Sample Size( Use the sample size determination formula as a
base and make adjustments with due regard to the target population
and the homogeneity or heterogeneity of the population characteristics
 Sampling Design( Show how and why used the different
techniques of probability and/or nonprobability sampling techniques
 Sampling Procedure( clearly state the steps in sampling- refer to
the first module for Research Methods for help.

1.4.4. Data collection
 State the data collection tool or tools used with
necessary Justifications written in the proposal
Interview,
Questionnaire,
Observation,
Focus group discussion
 Questionnaire design
 Questionnaire testing or pretesting if applied
 Data collection Procedures ( show in detail)
How the Questionnaire was administered
Who was involved?
How many people were involved?
When will data was collected?
Where was data collected?
How Data collection was administered?
How other methods were applied in combination(Triangulation)
Focus Group discussions
Interviews
Observation
1.4.4. Data processing and Analysis
 Manual Vs Mechanical
 Editing: Field Vs in-house editing ( include reasons)
 Recording /Data entry/ or keyboarding
 Methods of Analysis
Qualitative V/s Quantitative
Descriptive (tools to be used)
Explanatory
1.5 Significance of the study- Benefit of the study (Who may use the findings)
User organizations
Other researchers
The society or the community
1.6 Definition of key Terminologies and Concepts
Conceptual definitions general and related to dictionary meaning
Operational in the context of the research paper and in measurable terms
1.7 Scope and Limitation of the study

 Scope provides the boundary or framework
 Limitation is the implication or effect of the scope- Does not mean weakness
or problems to be faced
CHAPTER II
REVIEW OF RELATED LITERATURE.
 Deductive Order (General to specific)
 Concepts and definitions of terminologies directly related to the topic.
 Global issue and trends
 Regional or continental or industrial facts

 Best experiences, if relevant
 Problems and challenges related to the topic
 Important points in the literature
Adequacy- Sufficient to address the statement of the problem and the
specific objectives in detail
Logical flow and organization of the contents
Adequate citations
The variety of issues and ideas gathered from many authors
CHPTER III
DATA PROCESSTNG AND ANALYSIS.
3.1 Data processing
- Coding
- Editing
- Data entry
3-2 Data analysis
- Methods used
- Descriptive analysis
- Inferential statistics.
- SPSS/ SAS/STATA
3.3 Findings and discussion.
3.4 Data interpretation /summary of major findings
CHAPTER IV SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
Conclusion
Interpretation
References/Bibliography
Last name, first name, 2 nd name (year: page), Title of the book, edition,
Publisher details, city, state, Country.
Annex/Appendix Questionnaire
R E F E R E N C E S /BIBLIOGRAPHY
Alreck, Pamela L. and Robert B. Settle (1985), The Survey Research

Handbook,
Homewood: Irwin Inc.
Babbie, Earl (1986), The Practice of Social Research. 4 th ed. Belmont:
Wadsworth
Publishing Co.
Babbie Survey Research Methods, (1973), Belmont Wadsworth
Publishing Company, Inc.
Emory, C. William and Donald R. Copper (1991), Business Research
Methods, 4th
Ed.Boston: Irwin-Burr Ridge, Illinois.

Goode, William J. and Paul K. Hatt (1982) Methods in Social
Research, Auckland:
McGraw-Hill Book Company.
Gibaldi, Joseph and Walter S. Achter (1988), MLA Handbook for
Writers of
Research Reports, 3rd Ed. New York: The Modern Language
Association of America.
Huit, Christine A (1986), Researching and Writing: An Interdisciplinary
Approach, Belmont: Wadsworth Publishing Company.
Leedy, Paul D (1989), and Practical Research: Planning and Design,
2nd Ed. New
York: Macmillan Publishing Co., Inc.: London: Coller Macmillan
Publishers.
Lin, Nan. Foundations of Social Research (1986), New York: McGraw-
Hill Book
Company.
Simon, Julian L (1969) Basic Research Methods in Social Science: the
Art of
Empirical Investigation. New York: Random House, Inc.
Turabian, Kate L , A Manual for Writers of Research Papers, Theses,
and
Dissertations. Rev.
Zikmund, William G , (1997 or 2000). Business Research Methods. 5th
or 6th Editions, Toronto: The Dryden press Harcourt Brace College
Publishers.

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CHAPTER I

RESEARCH METHODS: AN OVERVIEW

By Naol A. Department of Management/ Mettu University 1

 You may be called upon to do a research study for a higher-level executive.

Figure 1: Stages in the Research Process

Redefine the problem

Select a Research Design

By Naol A. Department of Management/ Mettu University 2

Report Research Findings

Your findings are discussed and

Purposes and Classifications of Research

By Naol A. Department of Management/ Mettu University 3

MANAGERIAL VALUES/IMPORTANCE OF BUSINESS RESEARCH

"The secret of success is to know something nobody else knows."

By Naol A. Department of Management/ Mettu University 4

Identifying Problems and/or Opportunities

Diagnosis and Assessment

Evaluating the Course of Action

By Naol A. Department of Management/ Mettu University 5

Performance-monitoring research is a term used to describe a specific type of evaluation

Performance-monitoring research is an integral aspect of total quality management pro-

Exhibit 1.1: Determining When Business Research Should Be Conducted

Time Availability Nature of the

Business Research should not be conduced

By Naol A. Department of Management/ Mettu University 6

General Business Conditions & Corporate Research

 Short-range forecasting (up to one year)  Organizational communication

 Forecasts of financial interest-rate trends  Measurement of market potentials

Management and Organizational Behavior Research Information Systems Research

 Total quality management  Knowledge and information

By Naol A. Department of Management/ Mettu University 7

 Ecological impact studies

By Naol A. Department of Management/ Mettu University 8

By Naol A. Department of Management/ Mettu University 9

7. Greater confidence in the research is warranted if the researcher is experienced, has a

1.7. Problems Encountered by Researchers in Developing Countries

By Naol A. Department of Management/ Mettu University 10

THE PROCESS OF PROBLEM DEFINITION

Defining a research problem involves the following interrelated steps.

1. Ascertain the Decision Maker's Objective

By Naol A. Department of Management/ Mettu University 11

Exhibit 2: Indicators of Symptoms and True Problems

Symptoms Can Be Confusing

Television Taste of brewery's Except for those close to

By Naol A. Department of Management/ Mettu University 12

5. What are the Relevant Variables?

By Naol A. Department of Management/ Mettu University 13

Exhibit 3: Business Problem Translated into Research Objectives

Problem/Questions Research Research Objectives

Which of the services

Should the To determine managers' awareness

The number of research objectives should be limited to a manageable quantity.

By Naol A. Department of Management/ Mettu University 14

2. Study of relevant literature on the subject

2.2 Formulation of Research Hypotheses in Business

A hypothesis provides basic guide/direction/ frame work to be researcher. It is a tentative

By Naol A. Department of Management/ Mettu University 15

By Naol A. Department of Management/ Mettu University 16

"Which of two training