Lecture 2

Why managers need to know about research

Managers with knowledge of research have an advantage over those without. Though you yourself may
not be doing any major research as a manager, you will have to understand, predict, and control events
that are dysfunctional within the organization. For example, a newly developed product may not be
“taking off,” or a financial investment may not be “paying off” as anticipated. Such disturbing phenomena
have to be understood and explained. Unless this is done, it will not be possible to predict the future of that
product or the prospects of that investment, and how future catastrophic outcomes can be controlled. A
grasp of research methods enables managers to understand, predict, and control their environment.
Being knowledgeable about research and research methods helps professional managers to:
1. Identify and effectively solve minor problems in the work setting.
2. Know how to discriminate good from bad research.
3. Appreciate and be constantly aware of the multiple influences and multiple effects of factors impinging
on a situation.
4. Take calculated risks in decision making, knowing full well the probabilities associated with the different
possible outcomes.
5. Prevent possible vested interests from exercising their influence in a situation.
6. Relate to hired researchers and consultants more effectively.
7. Combine experience with scientific knowledge while making decisions.
Knowledge of research heightens the sensitivity of managers to the innumerable internal and external
factors operating in their work and organizational environment. It also helps to facilitate effective
interactions with consultants and comprehension of the nuances of the research process.
In today’s world, a multitude of instruments and theories, (big) data, and sophisticated technology is
available to model and analyze a wide range of issues such as business processes, consumer behavior,
investment decisions, and the similar. Thus, knowledge of research greatly enhances the decision‐making
skills of the manager.

Scientific Research Process

Managers frequently face issues that call for critical decision making. Managerial decisions based on the
results of “good” research tend to be effective.
Research can be undertaken for two different purposes.
One is to solve a current problem faced by the manager in the work setting, demanding a timely solution.
For example, a particular product may not be selling well and the manager might want to find the reasons
for this in order to take corrective action. Such research is called applied research.
The other is to generate a body of knowledge by trying to comprehend how certain problems that occur in
organizations can be solved. This is called basic, fundamental, or pure research.
It is quite possible that some organizations may, at a later stage, apply the knowledge gained by the
findings of basic research to solve their own problems.
Examples of Applied research
1. Globally, colas account for more than 50% of all sodas sold. The challenge for the $187 billion soft drink
industry is giving consumers in developed markets the sugary taste they want without giving them the
mouthful of calories they don’t. Concerns about obesity and health have led to nine years of falling U.S.
soda consumption. The soda giants can’t rely on existing diet versions of their namesake colas, as
consumers are shying away from the artificial sweeteners they contain. Critics have blamed the
ingredients – rightly or not – for everything from weight gain to cancer. Diet Coke is losing U.S. sales at 7%
a year, almost double the rate of decline of American cola sales overall. So Coke and Pepsi are turning
to research to save their cola businesses, which take in about two‐thirds of the industry’s U.S. sales. “If
you can crack the perfect sweetener, that would be huge,” says Howard Telford, an analyst at
researcher Euromonitor International.
Source: Stanford, D. (2015, March 19). Scientists Are Racing to Build a Better Diet Soda. Retrieved from
[Link] /articles/2015-03-19/coke-pepsi-seekdiet-soda-s-perfect-sweetener
2. In classical mythology, Aquila is the eagle carrying Jupiter’s thunderbolts skyward. At Facebook, it is the
code name for a high‐flying drone, indicative of the social networking company’s lofty ambitions. The V‐
shaped unmanned vehicle, which has about the wingspan of a Boeing 767 but weighs less than a small
 car, is the centerpiece of Facebook’s plans to connect with the 5 billion or so people it has yet to reach.
Taking to the skies to beam Internet access down from solar‐powered drones may seem like a stretch for
a tech company that sells ads to make money. The business model at Facebook, which has 1.4 billion
users, has more in common with NBC than Boeing. But in a high‐stakes competition for domination of the
Internet, in which Google wields high‐altitude balloons and high‐speed fiber networks, and Amazon has
experimental delivery drones and colossal data centers, Facebook is under pressure to show that it, too,
can pursue projects that are more speculative than product. One of those offbeat ideas, or so the
thinking goes, could turn out to be a winner. “The Amazons, Googles and Facebooks are exploring
completely new things that will change the way we live,” said Ed Lazowska, who holds the Bill and
Melinda Gates Chair in Computer Science and Engineering at the University of Washington.
Source: Hardy, Q. & Goel, V. (2015, March 26). Drones Beaming Web Access are in the Stars for Facebook.
Retrieved from [Link] [Link]/2015/03/26/technology/drones-beaming-web-access-are-in-the-
[Link]
Example of Basic or fundamental research
1. Right from her days as a clerical employee in a bank, Sarah had observed that her colleagues, though
extremely knowledgeable about the nuances and intricacies of banking, were expending very little
effort to improve the efficiency and effectiveness of the bank in the area of customer relations and
service. They took on the minimum amount of work, availed themselves of long tea and lunch breaks,
and seemed unmotivated in their dealings with the customers and the management. That they were
highly knowledgeable about banking policies and practices was clearly evident from their discussions as
they processed applications from customers. Sarah herself was very hard working and enjoyed her work
with the customers. She always used to think what a huge waste it was for talented employees to goof
off rather than to work hard and enjoy their work. When she left the bank and did the dissertation for her
PhD, her topic of investigation was Job Involvement, or the ego investment of people in their jobs. The
conclusion of her investigation was that the single most important contributory factor to job involvement
is the fit or match between the nature of the job and the personality predispositions of the people
engaged in performing it. For example, challenging jobs allowed employees with high capabilities to
get job-involved, and people-oriented employees got job-involved with service activities. Sarah then
understood why the highly intelligent bank employees could not get job‐ involved or find job
satisfaction in the routine jobs that rarely called for the use of their abilities. Subsequently, when Sarah
joined the Internal Research Team of a Fortune 500 company, she applied this knowledge to solve
problems of motivation, job satisfaction, job involvement, and the like, in the organization.
The above is an example of basic research, where knowledge was generated to understand a
phenomenon of interest to the researcher.
Most research and development departments in various industries, as well as many professors in colleges
and universities, do basic or fundamental research so that more knowledge is generated in particular areas
of interest to industries, organizations, and researchers. Though the objective of engaging in basic research
is primarily to equip oneself with additional knowledge of certain phenomena and problems that occur in
several organizations and industries with a view to finding solutions, the knowledge generated from such
research is often applied later for solving organizational problems.
Both applied and basic researches are often carried out in a scientific way. Therefore important to
understand what the term scientific means. Scientific research focuses on solving problems and pursues a
step‐by‐step logical, organized, and rigorous method to identify the problems, gather data, analyze them,
and draw valid conclusions from them. Thus, scientific research is not based on hunches, experience, and
intuition, but is purposive (purposeful) and rigorous (trustworthy).
Scientific research also helps researchers to state their findings with accuracy and confidence. Furthermore,
scientific investigation tends to be more objective than subjective, and helps managers to highlight the
most critical factors at the workplace that need specific attention so as to avoid, minimize, or solve
problems. Scientific investigation and managerial decision making are integral aspects of effective problem
solving. The term scientific research applies, therefore, to both basic and applied research.
The main distinguishing characteristics of scientific research may be listed as follows:
1. Purposiveness. 5. Precision and confidence.
2. Rigor. 6. Objectivity.
3. Testability. 7. Generalizability.
4. Replicability. 8. Parsimony.