Research is the process of systematic and indepth study or search for a
solution to a problem or an answer to a question backed by collection,
compilation, presentation, analysis and interpretation of relevant details, data and
information. It is also a systematic endeavour to discover valuable facts or
relationships. Research may involve careful enquiry or experimentation and
result in discovery or invention. There cannot be any research which does not
increase knowledge which may be useful to different people in different ways.
Let us see the need for research to business organizations and their managers
and how it is useful to them.
i) Industrial and economic activities have assumed huge dimensions. The size of
modern business organizations indicates that managerial and administrative
decisions can affect vast quantities of capital and a large number of people.
Trial and error methods are not appreciated, as mistakes can be tremendously
costly. Decisions must be quick but accurate and timely and should be
objective i.e. based on facts and realities. In this back drop business decisions
now a days are mostly influenced by research and research findings. Thus,
research helps in quick and objective decisions.
ii) Research, being a fact-finding process, significantly influences business
decisions. The business management is interested in choosing that course of
action which is most effective in attaining the goals of the organization.
Research not only provides facts and figures to support business decisions but
also enables the business to choose one which is best.
iii) A considerable number of business problems are now given quantitative
treatment with some degree of success with the help of operations research.
Research into management problems may result in certain conclusions by
means of logical analysis which the decision maker may use for his action or
solution.
iv) Research plays a significant role in the identification of a new project, project
feasibility and project implementation.
v) Research helps the management to discharge its managerial functions of
planning, forecasting, coordinating, motivating, controlling and evaluation
effectively.
vi) Research facilitates the process of thinking, analysing, evaluating and
interpreting of the business environment and of various business situations and
business alternatives. So as to be helpful in the formulation of business policy
and strategy.
Introduction to
Business Research
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vii) Research and Development ( R & D) helps discovery and invention.
Developing new products or modifying the existing products, discovering new
uses, new markets etc., is a continuous process in business.
viii) The role of research in functional areas like production, finance, human
resource management, marketing need not be over emphasized. Research not
only establishes relationships between different variables in each of these
functional areas, but also between these various functional areas.
ix) Research is a must in the production area. Product development, new and
better ways of producing goods, invention of new technologies, cost reduction,
improving product quality, work simplification, performance improvement,
process improvement etc., are some of the prominent areas of research in the
production area.
x) The purchase/material department uses research to frame alternative suitable
policies regarding where to buy, when to buy, how much to buy, and at what
price to buy.
xi) Closely linked with production function is marketing function. Market research
and marketing research provide a major part of marketing information which
influences the inventory level and production level. Marketing research studies
include problems and opportunities in the market, product preference, sales
forecasting, advertising effectiveness, product distribution, after sales service
etc.,
xii) In the area of financial management, maintaining liquidity, profitability through
proper funds management and assets management is essential. Optimum
capital mix, matching of funds inflows and outflows, cash flow forecasting,
cost control, pricing etc., require some sort of research and analysis. Financial
institutions also (banking and non-banking) have found it essential to set up
research division for the purpose of collecting and analysing data both for their
internal purpose and for making indepth studies on economic conditions of
business and people.
xiii) In the area of human resource management personnel policies have to be
guided by research. An individual’s motivation to work is associated with his
needs and their satisfaction. An effective Human Resource Manager is one
who can identify the needs of his work force and formulate personnel policies
to satisfy the same so that they can be motivated to contribute their best to the
attainment of organizational goals. Job design, job analysis, job assignment,
scheduling work breaks etc., have to be based on investigation and analysis.
xiv) Finally, research in business is a must to continuously update its attitudes,
approaches, products goals, methods, and machinery in accordance with the
changing environment in which it operates.
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