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Structure
3.1 Introduction
Objectives
3.2 Types of Data
On the basis of content
On the basis of data collection methods
3.3 Data Collection
3.4 Bar Charts and Histograms
3.5 Charts and Graphs
3.6 Summary
3.7 Glossary
3.8 Terminal Questions
3.9 Answers
3.10 Case Study
3.1 Introduction
In the previous unit, you have studied the basic concepts of process and
how to manage different processes of an organisation. To manage its
processes, an organisation needs to collect different types of data. In this
unit, let us study more about data and the methods of collecting data.
Contemporary businesses operate in a data-centered, complex world. Many
businesses have departments like analytics and business intelligence, just
to accumulate, analyse, and interpret data, and extract meaningful
information from it, for their organisation. An organisation requires timely
and accurate data to carry out its operations smoothly, to improve its
processes and business. The data can be collected from various sources
like books, magazines, newspapers etc.
After collecting data from the above mentioned sources, an organisation has
to analyse it to get substantive information. This data is further presented in
various forms so that it can be easily understood by the users. In order to
achieve this objective an organisation uses various data representation
tools, such as bar charts, histograms, graphs, run charts, etc.
In this unit, you will learn about the definition of data, its significance, and
different types of data. Further, you will learn about the methods of data
collection and various tools for data representation.
Objectives
After studying this unit, you should be able to:
explain the types of data
Categorical data
This data is non-numerical and normally descriptive in nature. Put
differently, the collected data is in the form of words or sentences. Mostly
this data has fixed category responses. Categorical data is also known as
qualitative data. As this type of data cannot be subjected to mathematical
calculation, other techniques such as scaling and coding are used for its
analysis.
Let us consider some of the techniques that can be applied to the
categorical data:
Items Choices
A 3
B 6
C 1
D 4
E 2
F 5
In the preceding example, 6 items are shown. The respondent was asked to
rank the items as per his/her preference. On the basis of the responses
given, item C is most preferred and item B is least preferred by the
respondent.
Rating Scale: According to this method, only one qualitative aspect is
evaluated in absolute terms. This method judges qualitative aspect of a
person or object on a rating scale. The rating scale indicates ratings as
above average, average, below average, excellent, and good.
An example of the rating scale method is given below.
How do you rate the new model of Dell laptop? Please select an option from
the choices below.
Excellent
Good
Neutral
Dislike Somewhat
Numerical data
This data is numerical in nature, and hence can be measured and
computed. Numerical data is also known as quantitative data. Examples of
numeric data can be population of a country, number of persons living
below the poverty line, or the production target for the quarter of a company,
etc. This type of data can be subjected to statistical calculations, such as
finding the average age of students, the percentage of the population living
below the poverty line, etc.
Descriptive statistics
Analysis of variance
Primary data
It is the type of data that is collected for a specific purpose directly from the
respondents. This data does not have any prior existence and is collected
For example, if you want to determine the changing tastes and preferences
of customers regarding a newly launched product, you can gather data
through surveys and interviews. This is because you would not find any
published data on this topic since the product is newly launched.
In primary data collection, the researcher has greater control over the
research and the type of method they used for data collection.
In this method, the errors and defects can be rectified at the point of
origin.
An organisation has to incur the high cost and efforts in this method.
Secondary data
The data collected from the sources such as government reports,
newspapers, magazines, internet, journals, etc. is called secondary data.
This data can be used even by people who did not collect this data
initially.
Similar data can be used by several people at a given time, as the data
is publically available.
Observation method
The observation method helps in studying the behaviour of individuals in a
situation, the reason for their behaviour, and the impact of their behaviour
on other individuals and society.
For example, you observe that in a retail showroom some people are buying
products while some people are not buying anything. In this case, you would
try to find out the reasons behind why and how some people buy products
and why some people do not buy anything. You may also notice the
behaviour of a shopkeeper with people.
The advantages of using an observation method are as follows:
It helps in getting unbiased responses from the respondents in most of
the cases.
Face-to-face interviews
In this method, the data is collected by directly meeting respondents in
person. In this approach, the interviewer sits in front of the person to whom
he/she is meeting and asks questions, as depicted in Figure 3.4.
Indirect interviews
Indirect interview is a method adopted by organisations when they are
unable to produce the correct responses through face-to-face interview.
Such a situation may arise due to several factors, such as:
Large size of population
It can be applied to collect additional data apart from the data required
for the main purpose.
Third-party agencies
In this method, the entire research process is outsourced to agencies.
These agencies are entirely responsible for the complete process of data
collection, evaluation, and output determination.
For example, an organisation hires a consultancy firm to optimise its
production process. In such an example, the consultancy firm will first
understand the scope of work and study the process utilised for performing
it. After that, the firm will have to collect data related to the number of inputs
required for producing a particular number of outputs. This would assist the
firm to know the productivity of the organisation. Based on this data, the
consultancy firm will take the necessary steps to optimise the production
process of the organisation.
The advantages of this method are as follows:
The data is highly secure as the third-party agency would ensure that
the collected data should not be misused or leaked as it would directly
affect its goodwill in the market and results in loss of customers.
Questionnaire
In this method, data is collected through a questionnaire, which consists of
open-ended, closed-ended, dichotomous, and multiple-choice questions.
The questionnaires are either mailed or directly supplied to the respondent.
The respondent is required to answer the questions and return the
questionnaire to the researcher. It is very important to design a
questionnaire appropriately to produce the desired results.
The designing of the questionnaire goes through several phases, which are
shown in Figure 3.5:
Deciding types of questions: Refers to the phase that determines the kind
of questions to be included in a questionnaire. The questions are broadly
separated into two categories: open-ended and closed-ended. Open-ended
questions do not have fixed responses; therefore, the respondents are free
to answer as they feel. These questions help in judging the beliefs,
behaviour, and motivations of the respondents. An example of an open-
ended question is, “Do you think training is important for an organisation?
Give reasons for your answer.” In close-ended questions, responses are
already provided for and the respondents need to select the most
appropriate response.
Agree
Neutral
Disagree
Strongly Disagree
These questions are easy to code that is why preferred by the managers.
However, for getting in-depth knowledge, open-ended questions are
preferred. In this phase, it needs to be decided that how the questionnaire
should be segmented to make the processing and analysis of data easier. In
addition, segmenting reduces the chances of skipping any topic, which has
to be included in the questionnaire.
Find out whether the questions would be able to fulfill the research
objective or not.
Start the questionnaire from simple questions and then move on to the
complex questions.
Questions can be of varied types and the response can generate even
greater or new insight.
Surveys
Surveys are another means of data collection. In a survey method, a group
of prospective respondents is selected from the population on which
research is conducted. This group of people is either provided with a
questionnaire on which they fill up their responses or they are interviewed
as a group or at individual basis to get their opinion on the topic under
research study. On the basis of these responses, the manager draws
inferences about the population.
Q4. How much time the government officers take to address the problem
of electricity failure in your area?
Same day
Two days
One week
No action is taken (even in a month)
Q5. Do you think certain areas in your city always have electricity?
Yes No
Q6. Can you give reasons why there is electricity in certain parts of the city
for a longer time, as compared to other parts?
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
Q7. Some people steal/waste electricity. Do you agree with this point?
Strongly agree
Agree
Neutral
Disagree
Strongly Disagree
Q8. Do you think the government should organise some programs to
encourage people to save electricity?
Yes No
Q9. Can you suggest some measures for preserving electricity?
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
Respondents need to fill up the survey form given in Figure 3.7. In Figure
3.7, the first four questions provide knowledge about the parts of the state
that have electricity and the electricity consumption rate of these parts.
Enumerators have also studied the frequency of power cuts and the time
taken to address this problem. The final five questions help the enumerators
in knowing the availability of electricity, its misuse by some people, and
ways to conserve electricity.
The advantages of surveys are:
Large sample size of data available with surveys.
A single survey may focus on various topics.
Sources of
Secondary
Data
Published Unpublished
Sources Sources
Activity 1:
Identify the methods used by an organisation for data collection in order to
determine the effectiveness of the procurement process of a
manufacturing organisation.
Table 3.4 shows the frequency distribution of the data (cross tabulation)
shown in Table 3.3:
Table 3.4: Frequency Distribution of Two Variables
Frequencies Number of Number of Total
Rejected Rejected
Items of Items of
Material 1 Material 2
(Kgs.) (Kgs.)
Machine 1 Absolute 100 98 198
Frequency
Percentage 18.25% 17.88% 36.13%
(Relative
Table 3.4 shows the absolute and relative frequency of material 1 and
material 2 on the two machines. Relative frequency is calculated by dividing
the absolute frequency by the grand total.
For example, on machine 1, the absolute frequency for the number of
rejected items of material 1 is 100 and the grand total frequency is 548.
Thus, the relative frequency is 18.25% (100/548x100).
Bar diagrams
A bar chart is a way of condensing a set category of data. It uses
rectangular bars of the same width representing a particular item. The
height of each bar is proportional to the value of data that is being
presented. A bar graph may be horizontal or vertical. There can be various
types of bar diagram, such as compound bar diagrams, multiple bar
diagram, two dimensional bar diagram, etc.
Figure 3.9 shows an example of a bar diagram:
In Figure 3.9, data show different commodity production in the year 2007 by
UK. For example, 14000 metric tons of cow milk was produced in the year
2007 for UK whereas the barley production was less than 6000 metric tons.
Histogram
A histogram is a way of displaying data graphically using bars of different
heights. Though it is similar to a bar graph, a histogram groups number into
ranges. It represents data by plotting a graph. A histogram represents the
distribution of grouped data. A grouped data is a series of data that is
constructed when the quantity of data is very large.
Figure 3.10 shows an example of a histogram:
Activity 2:
Prepare a one-way frequency distribution table and a histogram of the
following data:
Pie chart
It is a graphical representation of data in which the percentage of
contribution of the individual source is depicted on the whole.
Figure 3.11 shows an example of a pie chart:
Frequency polygon
It is a line graph made by joining the mid-points of the top of the bars in a
histogram.
Figure 3.12 depicts an example of frequency polygon, where a line linking
all the mid-points of the bars has been drawn:
3.6 Summary
Let us recapitulate the main points discussed in the unit:
Data are raw facts or figures that are processed for determining
meaningful information.
There can be two types of data on the basis of content and methods
used to collect data.
Various tools for data representation are bar diagrams, histograms, pie
charts, frequency polygons, etc.
3.7 Glossary
Let us have an overview of the important terms mentioned in the unit:
Frequency: It represents the number of times a particular value or the
attribute has occurred in the entire set.
Frequency Distribution: It is a tabular representation of data that
describes the number of times a particular attribute has occurred in the
whole.
Respondent: A person who assists in collecting primary data by providing
his/her responses.
Primary Data: It is the data which is obtained from the first-hand account
meaning on the basis of first-hand history.
Secondary Data: It is the data which has already been collected and which
is now being employed for some other purpose.
3.9 Answers
5. Secondary data
6. True
7. Primary
8. False
9. False
10. True
11. True
12. Bar diagram
13. Histogram
14. Pie chart
15. True
Terminal Questions
1. Primary data is collected directly from the respondents. Secondary data
is collected for purposes other than research and is reused by
researchers. Refer Section 3.2 Types of Data, which defines primary
data.
2. Indirect interviews are utilized when the researcher is not able to obtain
the right answers from the face-to-face interviews. Refer Section 3.3
Data Collection, which elaborates on indirect interviews.
5. Bar charts involve the use of rectangular bars of the same width for
representing a particular point. Refer Section 3.4 Bar Charts and
Histograms, which explains bar diagrams.
The findings made by the research team showed that the buyers were
rejecting the organisation’s materials due to various reasons. The findings
made by the research team showed that the buyers were rejecting the
organisation’s materials due to various reasons. For instance, they were not
getting the delivery of materials on time or their queries were taking a longer
time to get settled.
Questions:
1. Which are the different methods of data collection used in the case
study?
2. Discuss the different types of data.
References
Montgomery, D. C. (2002), Introduction to Statistical Quality Control.
Daryaganj, New Delhi: Wiley India (P.) Ltd.
Flood, R. B. (1993), Beyond TQM. West Sussex, England: John Wiley &
Sons Ltd.
E-References
Types of data: Statistics. Retrieved from
http://arb.nzcer.org.nz/supportmaterials/maths/Types_of_data_statistics.
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