Business Research Method in ACFN 2020

CHAPTER ONE

Contents
1. Definition of research.........................................................................................................................................2
1.1 Business research,............................................................................................................................................2
1.2 Objectives of Research.....................................................................................................................................3
1.3 Characteristics of Scientific Method................................................................................................................3
1.4 What makes people to undertake research?......................................................................................................5
1.5 Significance/importance of research................................................................................................................5
1.5.1 Other Significance of Research..................................................................................................................5
1.6 TYPES OF RESEARCH..................................................................................................................................6
1. On the basis of purpose..................................................................................................................................7
2. On the basis of data of research (research approach)......................................................................................8
3. On the basis of the setting..............................................................................................................................9
4. On the basis of time........................................................................................................................................9
5. On the basis of logic.....................................................................................................................................10
1.7 Criteria of Good Research..............................................................................................................................11
1.8 The qualities of a good research....................................................................................................................11
1.9 Research Process............................................................................................................................................12
1.10 RESEARCH PROBLEM.............................................................................................................................16
1.11 CRITERIA OF A PROBLEM......................................................................................................................17

1|Page
 Business Research Method in ACFN 2020
1. Definition of research
 Research is a process of acquiring new knowledge that has the potential to solve problems. There
are different ways of acquiring new knowledge:
1) Tradition
2) Personal experience
3) Experts/Authorities
4. Application of scientific method

A) Tradition: knowledege acquired through custom/Magic/ superstition (religion, witchcraft, etc) and
culture
– It is based on an idealized past
– But the past might have already changed
– E.g. Using traditional knowledge, traders may buy and stock commodities that they
believe will be highly demanded
B) Personal experience: relying on earlier experience
– As you acquire more working experiences in your field, you add/generate more
knowledge
– But, past experience don’t solve every problem
C) Authorities: relying on what authorities say
– Authorities in banking sector may forecast profit of their institution for a given year and
you may acquire new knowledge from what they said.
– But authorities might be wrong
D) Application of scientific methods.
– Scientific method refers to a methodological and systematic approach to the acquisition of new
knowledge. This definition of science highlights some of the key differences between how
scientists and nonscientists go about acquiring new knowledge. Specifically, rather than relying
on mere casual observations and an informal approach to learn about the world, scientists attempt
to gain new knowledge by making careful observations and using systematic, controlled, and
methodical approaches.

1.1 Business research,

In particular, is defined as the systematic and objective process of generating information for aid in
making business decisions. Compared to physical science, however, business research lags behind in
terms of the development of scientific method because:
– Business research deals with human attitudes, behavior and performance. People think they already
know a lot about these topics and don’t easily accept findings that differ from their opinions.
– Much public fund finance physical research and only business organizations sponsor business
research.
– Nevertheless, computers and powerful analytical methods contributed a lot in making business
research scientific.

2|Page
 Business Research Method in ACFN 2020
Research is, thus, an original contribution to the existing stock of knowledge making for its advancement.
It is the pursuit of truth with the help of study, observation, Comparison and experiment. In short, the
search for knowledge through objective and systematic method of finding solution to a problem is
research. The systematic approach concerning generalization and the formation of a theory is also
research.

1.2 Objectives of Research

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. Though each research study has its own specific purpose, we may think of research
objectives as falling into a number of following broad groupings:
i) To gain familiarity with a phenomenon or to achieves new insight into it (Exploratory or formulative
research studies)
ii) To show accurately the characteristics of a particular individual, situation or a group (Descriptive
research studies)
iii) To determine the frequency with which something occurs or with which it is associated with
something else (diagnostic research studies)
iv) To test a hypothesis of a casual relationship between variables (hypothesis-testing research studies)

1.3 Characteristics of Scientific Method

I) Empirical and verifiable
 Scientific method is concerned with the realities that are observable through “sensory
experiences.”
 It generates knowledge which is verifiable by experience or observation.
 Some of the realities could be directly observed, like:
 The number of students present in the class and
 How many of them are male and how many, female?
Observations made through scientific method are to be verified again by using the senses to confirm or refute the
previous findings.
Such confirmations may have to be made by the same researcher or others.
We will place more faith and credence in those findings and conclusions if similar findings emerge on the basis of
data collected by other researchers using the same methods
It has less concern about realities that cannot be put to “sensory experience” E.g.
existence of heaven, and life thereafter
the Day of Judgment,

3|Page
 Business Research Method in ACFN 2020
God’s rewards for good deeds does not fall within the domain of scientific method
II) Cumulative (connection)
Prior to the start of any study researchers try to scan through the literature and see that their study is not a repetition
in ignorance.
Instead of reinventing the wheel the researchers take stock of the existing body of knowledge and try to build on it.
A linkage between the present and the previous body of knowledge has to be established, and that is how the
knowledge accumulates.
III) Deterministic
Science is based on the assumption that all events have antecedent causes that are subject to identification and
logical understanding.
For the scientists, nothing “just happens” – it happens for a reason.
The scientific researchers try to explain the emerging phenomenon by identifying its causes.
IV) Ethical and Ideological Neutrality
The conclusions drawn through interpretation of the results of data analysis should be objective; that is, they
should be based on the facts of the findings derived from actual data.
Scientific method should follow the principle of objectivity, uphold neutrality, and present the results in an
unbiased manner.
For instance, if we had a hypothesis that stated that greater participation in decision making will increase
organizational commitment, and this was not supported by the results, it makes no sense if the researcher continues
to argue that increased opportunities for employee participation would still help.
V) Statistical Generalization

 Generalizability refers to the scope of the research findings in one organizational setting to other
settings.

Obviously, the wider the range of applicability of the solutions generated by research, the more useful the
research is to users, i.e. the more generlaizable is the research, the greater its usefulness and value

VI) Rationalism
 Science is fundamentally a rational activity, and the scientific explanation must make sense. It
grounds on logical reasoning.
 Religion may rest on issues out of logical reason (revelations, custom, or traditions etc.) but
science must rest on logical reason.
 There are two distinct logical systems important to the scientific quest, referred to as deductive
logic and inductive logic.
 Inductive reasoning (from particular instances to general principles, from facts to
theories) and

 Deductive reasoning (from the general to the particular, applying a theory to a particular
case).

 The classical illustration of deductive logic is the familiar syllogism: “All men are mortal;
Mekonen is a man; therefore Mekonen is mortal.”

4|Page
 Business Research Method in ACFN 2020
1.4 What makes people to undertake research?
The possible motives for doing research may be either one or more of the following:
i) Desire to get a research degree along with its consequential benefits:
ii) Desire to face the challenge in solving the unsolved problems, i.e., concern over practical
problems initiates’ research.
iii) Desire to get intellectual pleasure of doing some creative work;
iv) Desire to get respectability.

1.5 Significance/importance of research

• It adds to our knowledge. It produces knowledge which could be used for the solution of problems as
well as for the generation of universal theories, principles and laws. It aaddresses gaps in knowledge,
expands or replicate knowledge or adds voices of individuals to knowledge.
• It helps improve practice. It has the significance of solving various operational and planning problems
of business and industry. It provides the needed information that guides the planners to make
informed decisions to successfully deal with the problems. It provides the basis for studying social
relationships and solving societal problems.
• It helps inform policy debates. It provides the basis for government and economic policies

• Research allows people to weigh different perspectives on issues.

• Research enables people to make informed decisions regarding policy. E.g. Encouraging
saving: Interest rate policy

1.5.1 Other Significance of Research

“All progress is born of enquiry. Doubt is often better than overconfidence, for it leads to enquiry and
enquiry leads to invention” is a famous Hudson Maxim in content of which the significance of research
can well be understood. Increased amount of research make progress possible. Significance can be
highlighted by the following points.
1. Research indicates scientific and indicative thinking
2. It promotes the development of logical habits of thinking and organization.
3. Research provides the basis for nearly all governmental policies in our economic systems.
4. Research has its special significans in solving various operational and planning problems of
business and industry.

5|Page
 Business Research Method in ACFN 2020
5. Research is equally important for social scientists in studying social relationships and in seeking
answers to various social problems
In addition to what has been stated above, the significans of research can also be understood keeping in
view the following points:
a) To those students who are to write a masters or Ph.D, thesis, research may mean a
careerism or a way to attain a high position in the social structure.
b) To professionals in research methodology, research may mean a source of livelihood;
c) To philosophers and thinkers, research may mean the outlet for new ideas and insights;
d) To literary men and women, research may mean the development of new style and
creative work
e) To analysts and intellectuals, research may mean the generalizations of new theories.
Thus, research is the fountain of knowledge for the sake of knowledge and an important source of
providing guidelines for solving different business, governmental and social problems. It is a sort of
formal training which enables one to understand the new developments in one’s filed in a better way.

1.6 TYPES OF RESEARCH

By Process By Purpose Scientific Research Approach

1. Reporting 1. Business Research 1. Applied Research
2. Descriptive 2. Social Science Research 2. Fundamental Research
3. Explanatory 3. Techniques oriented 3. Conclusion oriented research
Research and Decision oriented Research
4. Predictive 4. Motivation Research 4. Conceptual or empirical
Research
5. Exploratory
6. Qualitative and
Quantitative
7. Analytical
A. Action research- It assumes that knowledge develops from experience, particularly the experience
of social-political action. They also assume that ordinary people can become aware of conditions
and learn to take actions that can bring about improvement.
B. Impact Assessment Research- Its purpose is to estimate the likely consequences of a planned
change. Such an assessment is used for planning and making choices among alternative policies –
to make an impact assessment of Ethiopian Renaissance Dam on the environment; to determine
changes in city plan of Addis Ababa as a result of the major new highways and railways built

6|Page
 Business Research Method in ACFN 2020
C. iii) Evaluation Research (formative or summative)
It is the process of establishing value judgment based on evidence about the achievement of the
goals of a program. Evaluation research measures the effectiveness of a program, policy, or way
of doing something. “Did the program work?” “Did it achieve its objectives?”
1. On the basis of purpose
On the basis of the underlying reason for which it is conducted, research can be exploratory, descriptive,
explanatory/analytical or predictive.Exploratory research/preliminary research

A. Exploratory studies are meant to provide quantitative or qualitative or combined scenarios. In these
studies, three inter-related activities such as (a) diagnosing a situation (b) scanning the alternatives
and (c) discovering new ideas exist. It focuses on the development of hypotheses rather than their
testing. Exploratory research has the goal of formulating problems more precisely, clarifying
concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming
hypotheses.
Goals of Exploratory Research:
1. Become familiar with the basic facts, setting, and concerns;
2. Develop well-grounded picture of the situation;
3. Develop tentative theories; generate new ideas, conjectures, or hypotheses;
4. Determine the feasibility of conducting the study;
5. Formulate questions and refine issues for more systematic inquiry; and
6. Develop techniques and a sense of direction for future research.
B. Descriptive research
The main purpose of such research is description of the state of nature or affairs, as it exists at
present. Descriptive research: include surveys and fact finding enquiries of different kinds.
Goals of Descriptive Research
1. Describe the situation in terms of its characteristics i.e. provide an accurate profile of a group;
2. Gives a verbal or numerical picture (%) of the situation;
3. Presents background information;
4. Creates a set of categories or classify the information;
5. Clarifies sequence, set of stages; and
6. Focuses on ‘who,’ ‘what,’ ‘when,’ ‘where,’ and ‘how’ but not why?
C. Explanatory/analytical research

It aims at critical assessment of the given phenomenon or problems expressed in facts, figures and
narrative information. It helps in listing out the finer aspects of the subject as well as critical,

7|Page
 Business Research Method in ACFN 2020
controversial and significant gaps on a given subject. Available information or facts are used to make
critical evaluation-ask “why” things happen the way they are.

Goals of Explanatory Research

1. Explains things not just reporting. Why? It elaborates and enriches a theory’s explanation.
2. Determines which of several explanations is best.
3. Determines the accuracy of the theory; tests a theory’s predictions or principle.
4. Advances knowledge about underlying process.
5. Builds and elaborates a theory; elaborates and enriches a theory’s predictions or principle.
6. Extends a theory or principle to new areas, new issues, new topics:
7. Provides evidence to support or refute an explanation or prediction.
8. Tests a theory’s predictions or principles
D. Predictive research

 It goes explaining why and how things happened.

 Predictive analytics has its roots in the ability to “Predict” what might happen. These analytics are
about understanding the future

 It predicts (forecast) the possibility /probability of happening in similar situation in the future.

 It provides companies with actionable insights based on data, and provides estimates about the
likelihood of a future outcome. However, there is no statistical algorithm which can “predict” the
future with 100% certainty. This is because the foundation of predictive analytics is based on
probabilities.

2. On the basis of data of research (research approach)

On the basis of data used in the research process research can be:
A. Quantitative research

It aims at measurement of a phenomenon. It is based on the measurement of quantity/amount. It could

take the form of non-experimental (mere descriptive), experimental, Quasi-experimental/inferential, and
simulation.
B. Qualitative research
It aims at finding out how people feel or what they think about a particular subject or institution. E.g.
Attitude of customers towards the services of Ethio Telecom
C. Mixed research
 This research involves both aspects of quantitative and qualitative researches. There are various
philosophical assumptions underlying the mix. These may include the need for triangulation,
corroboration, expansion of the range of inquiry (depth and breadth).

8|Page
 Business Research Method in ACFN 2020
 The selection among the three is mainly determined by the research paradigm that the researcher
assumes for his/her investigation. These paradigms may include Positivism/post positivism,
pragmatism, social constructivism/critical social theory, and interpretive.

3. On the basis of the setting

On the basis of the setting/environment it can be classified as:

A. Field research:

It is a research carried out in the field. Such research is common in social science, agricultural
science, history and archeology.

B. Laboratory research

 It is a research carried out in the laboratory. These are commonly experimental research. In this type
of research, one or more variables are manipulated under conditions, which permit the collection of
data, which show the effects. Experiments are artificial in the sense that the situations are created for
testing purposes.

C. Simulation research

Such researches use models that are meant to represent the real world, which is common in physical
science, economics and mathematics. An artificial environment is constructed to see the dynamic
behaviour of a system or its sub-systems. Computable General Equilibrum (CGE) models are examples
of simulation models applicable in agric/development economics

4. On the basis of time

On this basis it can be classified into two as:
A) one-time research/cross sectional
 It is usually the simplest and least costly alternative.
 Its disadvantage is that it cannot capture the change processes.
 It can be exploratory, descriptive, or explanatory, but it is most consistent with a descriptive
approach.
B) Longitudinal research

 It examine features of people or other units at more than one time. E.g. They are time series
analyses that make repeated measurements of the same individuals or information, thus allowing
the researcher to monitor the change of behavior. It provides a moving picture that lets us follow
events, people, or sale of products over a period of time.

9|Page
 Business Research Method in ACFN 2020
 It is usually more complex and costly than cross-sectional research but it is also more powerful,
especially when researchers seek answers to questions about change.

There are three types of longitudinal research:

1. Time series research is longitudinal study in which the same type of information is collected on a
group of people or other units across multiple time periods.
2. The panel study is a longitudinal research, in which the researcher observes exactly the same
people, group, or organization across time periods. It is a difficult to carry out such study.
Tracking people over time is often difficult because some people die or cannot be located.
3. A cohort analysis is similar to the panel study, but rather than observing the exact same people, a
category of people who share a similar life experience in a specified time period is studied.

5. On the basis of logic

On this basis of the logical approach it follows, research can take two forms: inductive or deductive.

A. Inductive

This approach to research relies on the empirical verification of a general conclusion derivable from a
finite number of observations. If an event repeats itself enough times then it can be concluded that the
event will continue to occur, ceteris paribus. It operates from the specific to the general. Observation
reveals patterns or trends in a specific variable of interest and these are then used to formulate a general
theory of the nature and behavior of that variable and often other variables which fall into the same
‘class’ of phenomena.

B. Deductive
It uses as its basis the establishment of universal laws. These laws are essentially only hypotheses which
continue to require testing against the predictions of the laws themselves. The universal laws remain so
until one or more of their predictions are found to be false—in which case the theoretical framework,
which derived them, needs to be revisited. It operates from ‘the general to the specific’. Testing the
hypotheses requires the application of relevant data which may or may not confirm the original
arguments in the theory.
All the above can be summarized into:
Research methods are useful in:
a) Decision making
b) Understanding the data, and analysis
c) Understanding earlier research reports, their evaluation and applicability
d) Evaluating research proposal in case of out sourcing

10 | P a g e
 Business Research Method in ACFN 2020
e) To develop professionalism and a career in research

1.7 Criteria of Good Research

What ever may be the types of research work and studies, one thing that is important is that they all meet
on the common ground of scientific method employed by them. One expects scientific research to satisfy
the following criteria.
1. The purpose of the research should be clearly defined and common concepts be used.
2. The research procedure used should be described in sufficient detail to permit another researcher
to repeat the research for further advancement, keeping the continuity of what has already been
attained.
3. The procedural design of the research should be carefully planned to yield results that are as
objective as possible,’
4. The researchers should report with complete frankness, flaws in procedural design and estimate
their effects upon the findings.
5. The analysis of data should be sufficiently adequate to reveal its significans and the methods of
analysis used should be appropriate. The validity and reliability of the data should be cheeked
carefully.
6. Conclusions should be confined to those testified by the data of the research and limited to those
for which the data provides an adequate basis.
7. Greater confidence in research is warranted if the researchers is experienced, has a good
reputation in research and is a person of integrity.
In other words, we can state
1.8 The qualities of a good research as under:
(i) Good research is systemstic
(ii) Good research is logical
(iii) Good research is empirical
(Res. is basically related to one or more aspects of a real situation it deals with concentrate
data that provides basis for external validity to res. Result.)
(iv) Good research is replicable

11 | P a g e
 Business Research Method in ACFN 2020
1.9 Research Process
Research process consists of series of actions or steps necessary to effectively carry out research and the
desired sequencing of these steps. One should remember that the various steps involved in a research
process are not mutually exclusive; nor they are separate and distinct. They do not necessarily follow
each other in any specific order and the researcher has to be constantly anticipating at each step in the
research process the requirements of the subsequent steps. However, the following order concerning
various steps provides a useful procedural guideline regarding the research process.
1. Formulating the research problem
2. Extensive literature survey
3. Developing the hypothesis
4. Preparing the research design
5. Determining the sample design
6. Collecting the data
7. Implementation of the project
8. Analysis of data
9. Hypothesis testing
10. Generalization and interpretation
11. Preparation of the report or presentation of the result, i.e., formal write-up of conclusions reached.

12 | P a g e
 Business Research Method in ACFN 2020

The main steps in the research process includes the following:

i) Broad Problem Area
The process begins with a researcher selecting a topic – a general area of study or issue such as:
 Divorce,
 Crime,
 Aging,
 Marketing, Or
 Employees’ dissatisfaction
Such issues might pertain to:
a) Problem currently existing in an organizational setting that need to be solved (sexual harassment);
b) Areas that a manager believes need to be improved in the organization (improving the existing
policies);
c) A conceptual or theoretical issue that needs to tightened up for basic researches or to understand
certain phenomenon (conceptual definition of harassment); and
d) Some RQs that a basic researcher wants to answer empirically (impact of harassment on the
performance of the workers).

ii) Preliminary Data Collection

13 | P a g e
 Business Research Method in ACFN 2020
 This step may be considered as part of the exploratory research. An exploration typically
begins with a search for published data and studies.
 Such sources can provide secondary data which becomes part of the background
information (about the organization, groups of people, context of the issue).
 Some secondary sources of data are statistical bulletins, government publications,
information published or unpublished, case studies, online data, web sites, and the Internet.
iii) Problem Definition
 After having discussions with the professionals as well as with the persons to whom the issue
relates, and the review of literature, the researcher is in a position to narrow down from its
original broad base and define the issue clearly. The symptoms of a problem might help tracing
the real problem.
 Then, translate the broad issue into a research question.
As part of the applied research convert the management dilemma into a management question, and then
onto RQs that fits the need to resolve the dilemma
 To what extent has the new advertising campaign been successful in creating the high
quality, consumer-centered corporate image that it was intended to produce?
 Has the new organizational reform program brought the intended objective?
 Will the day care centers affect the productivity of female workers?
 Why the divorce rate is on the increase in Addis Ababa?
 Why the employee turnover is becoming high in the civil service sector?
 What could be the impact of tax reform on attracting foreign direct investment?
v) Generation of Hypotheses
 Once we have identified the important variables relevant to an issue and established the
logical reasoning in the theoretical framework, we are in a position to test whether the
relationships that have been theorized do in fact hold true.
 By testing these relationships scientifically, we are in a position to obtain reliable
information to determine the relationship among the variables.
v) Generation of Hypotheses
 When propositions are formulated for empirical testing. It is a tentative proposition that will be
verified or falsified through empirical testing.
 Formulation of research hypothesis is not arbitrary. It is rather based on theory or previous
research findings.

14 | P a g e
 Business Research Method in ACFN 2020
 Research hypothesis plays the role of guiding the direction of the study, hence should be carefully
designed.
 It identifies facts that are relevant from those which are not.
 It suggests the appropriate research design to adopt and provides a framework for organizing the
conclusion.

There are two types of hypothesis: Descriptive and Relational Hypothesis

• Descriptive Hypothesis: propositions that typically state the existence, size, form or distribution
of some variables. E.g. for the research question “What is the unemployment rate in the States?”
the hypothesis could be “The current unemployment rate in the States exceeds 6%.”
• Relational Hypothesis: statements that describe (causal) r/ship b/n two variables.
– Increasing frequency of product advertisement is expected to increase sales volume.
– An increase in family income is expected to lead to higher percentage of saving
iv)Theoretical Framework
 Consultations with the informants and professionals, and the review of literature should have
helped in the identification of different factors that are considered to be relevant to the topic.
 The researcher has to make logical relationship among several factors identified earlier.
 The theoretical framework discusses the interrelationships among the variables that are deemed to
be integral to the dynamics of the situation being investigated.
 Developing such a conceptual framework helps to postulate or hypothesize and test certain
relationships.

vi) Research design

 Research design is a master plan specifying the methods and procedures for collecting and
analyzing the needed information.
 It is a framework or the blueprint that plans the action for research project.
 The objectives of the study determined during the early stages of the research are
considered in the design to ensure that the information collected is appropriate for solving
the problem.
 The researcher must specify the research design both in terms of data (approach and
specific design) and in terms of purpose.
Vii) Data Collection, Data Processing, and Analysis
 Data collection is determined by the research technique selected for the project.
 Data can be collected in a variety of ways, in different settings – field or lab & from different
sources. It could include:
 Interviews –face-to-face interviews, telephone interviews, computer-assisted interviews or
through other electronic media;

15 | P a g e
 Business Research Method in ACFN 2020
 Questionnaires that either personally administered, sent through mail, or electronically
administered;
 Observation of individuals and events or non-participant.
 Once the fieldwork has been completed, the data must be converted into a format that will answer
the RQs and or help testing the hypotheses.

Viii) Testing the Hypotheses; Answering the RQs

 The analysis and interpretation of the data shall be the means to testing the formulated
hypotheses as well as finding answers to the research questions.
 In applied research, it should be helpful in finding solutions to the problems of the
organization or society.
 Making recommendations may also be part of this process.
ix) Report Writing
 The research report should communicate the research findings effectively.
 Usually the report is a complicated statement of the study’s technical aspects and
sophisticated research methods. If the study has been conducted for a business management,
the top management is not interested in detailed reporting of the research design and
statistical findings but wants only the summary of the findings.
Viii) Testing the Hypotheses; Answering the RQs
 The analysis and interpretation of the data shall be the means to testing the formulated
hypotheses as well as finding answers to the research questions.
 In applied research, it should be helpful in finding solutions to the problems of the
organization or society.
 Making recommendations may also be part of this process.
ix) Report Writing
 The research report should communicate the research findings effectively.
 Usually the report is a complicated statement of the study’s technical aspects and
sophisticated research methods. If the study has been conducted for a business management,
the top management is not interested in detailed reporting of the research design and
statistical findings but wants only the summary of the findings.

1.10 RESEARCH PROBLEM

The first step in designing social research is to perceive a problem either theoretical or applied. It is
researcher’s perception or recognition of a problem that motivates research. A problem exists when we
do not have enough information to answer a question.
This may happen

16 | P a g e
 Business Research Method in ACFN 2020
1. When there is noticeable gap in the results of investigations. Those questions which have
remained unanswered by earlier investigations may make us aware of the problem. Collection of
data with a view to fill this gap is thus indicated.
2. When a result of several enquires disagree.
3. When a fact exists in the form of a bit of unexplained information. Fore example, when the
production or sales targets are not being met or the cost of production or rate of absenteeism or
the number of accidents is going up without there being sufficient explanation for such
developments.
4. When there is desire for innovation For example, a manufacture may think of conducting
research in new methods of productions, packing or sale even when there is no problem existing
in any of these areas.
The problem for research should ordinarily be expressed in an interrogative form
For example: What are the effects on workers’ performance of different types of incentives?
-Does anxiety affect achievement?
The goal of research in all these cases would be to seek answers to these questions.

1.11 CRITERIA OF A PROBLEM

Every problem selected for research must satisfy the following criteria.
1. It should be Original
The purpose if research is to fill the gaps in existing knowledge to discover new facts and not to
repeat already known facts. Therefore, a preliminary survey of the existing literature in the proposed
area of research should be carried out to find out the possibility of making original contribution.
Knowledge about the previous research will serve the following five useful purposes
i) It will enable the researcher to identify his specific problems for research:
ii) It will eliminate the possibility of unnecessary duplication of effort.
iii) It will give him valuable information on the merits and demerits of various research
techniques which have been used in the past.
iv) It will tell him where others have floundered so that he may be cautius, and
v) It will enrich his knowledge of the characteristics concepts and terminology in his
area of specialization.
2. It should be neither very general nor very specific

17 | P a g e
 Business Research Method in ACFN 2020
If the problem is very general, it is usually too vague to be tested. On the other hand, if the problem is
very specific, it is usually too narrow to be important or consequential. Too great specificity is
perhaps a worse danger than too great generality. At any rate some kind of compromise must be made
between generality and specificity.
3. It should be Solvable
No problem, however significant, is a good choice if is unsolvable. Generally a problem may be
unsolvable due to two reasons:
i) It may concern some super natural or amorphous phenomenon. For example how does
mind work? Who created this world?
ii) It can not be operationally defined
For example to measure sex or social class is every easy but to measure anxiety, creatively is
difficult.
4. It should be feasible
The feasibility of carrying out research on the selected problem should be checked against the
following considerations;
i) Study design,
ii) Access to organization and respondents,
iii) Sample or universe to be studied,
iv) Source of data,
v) Method of collecting data,
vi) Type of variables (nominal/ordinal) involved,
vii) Selection of scale of measurement and statistics
viii) Character of distribution of variables:
-Normal (allowing for parametric Statistics)
- Non-normal (requiring non-parametric Statistics)
ix) Treatment of data – manual calculation or computer calculation
x) Time required for study and its availability
xi) Funds required and their availability.

18 | P a g e