LEARNING OBJECTIVES

$1.$ Identify problem areas that are likely to be studied in organizations.

$2.$ Explain why it is important to distinguish between two different types of situations that may or may not lead to a research project.

$3.$ Carry out an exploration.

$4.$ Make a Diagnosis.

$5.$ Distinguish between different types of action problems: technical problems, information problems, consensus problems and a combination of information and consensus problems.

$6.$ Define the management problem.

INTRODUCTION

There are many reasons to carry out applied research. The common theme is that every research project starts with a problem $($an information problem$)$ that a researcher wants to address. Research is often needed when managers are proactively looking for decision opportunities. For example, a manager might be thinking about entering a new market $($but she does not know whether it is a good idea$)$ or about introducing a new product into the market $($but she wants to involve consumers in the process of developing that product$).$

Another manager might be committed to maintaining the overall competitiveness of the organization $($but he has little insight into the competitive environment of the organization$).$ Indeed, unless managers understand what is going on in such situations, they cannot make effective decisions. Applied research may also result from a specific situation that a manager wants to change $($for instance, staff turnover is $20$ percent and for some reason the manager finds this problematic$).$

If a manager wants to solve the $($action$)$ problem but does not know how or if it is unclear which intervention is more effective compared to other interventions, research is needed. Such research will help managers to make effective decisions to solve the problems.

A multitude of decisions must be made in organizations. Even in situations where there are no immediate problems such as a loss in market share, dissatisfied personnel or disgruntled consumers, effective managers are constantly looking for decision opportunities or areas for improvement. Instead of waiting for a situation that is imposed upon them, they show initiative. Along these lines, there are many potential applications for research. These applications include the following:

$$ Monitoring performance $($sales$,$ margins, market share, employee satisfaction, turnover, customer satisfaction and different types of audits$)$ may help managers to obtain useful feedback for decision$-$making.

$$ Identifying market opportunities and constraints is often an important starting point for developing effective strategies.

$$ Firms that are considering new product introductions or entries into new markets will benefit from obtaining information on issues such as long$-$term profitability of a market, competitors and consumers.

$$ Customer analysis helps managers to understand needs and wants of customers, to develop effective segmentation strategies, position a product in the market and the like.

$$ Research on the organization$$s competitive environment is key to maintaining and improving an organization$$s overall competitiveness.

$$ Industry evaluation may help managers to identify whether the organization is effective in maximizing the benefits to the organization $($in terms of$,$ for instance, sales, market share and profits$)$ from available opportunities.

$$ Idea generation through extensive research may lead to successful introductions of new products.

The above examples illustrate that research often plays an important role in situations where a manager is proactively looking for decision opportunities or areas for improvement.

Research may help the manager to make decisions, gain knowledge, reduce uncertainty about a decision and$/$or include stakeholders in the decision process.

To Conduct Research or Not

After having been briefed by the manager $($teacher$),$ the researcher is ready to start. A logical starting point for exploration in situations where a manager is proactively looking for decision opportunities or areas for improvement is the issue of whether to conduct research.

Four factors influence the decision to conduct research:

$1.$ the potential usefulness of the research results,

$2.$ the resources available for implementing the research results,

$3.$ the attitude of various stakeholders towards the project and

$4.$ the costs and benefits of the project.

The potential usefulness of a research project is the extent to which its findings contribute to decision$-$making and action. It is related to the extent to which the research findings reduce a decision$-$maker$$s uncertainty and provide additional insights into a given situation. A project with little potential usefulness should not be executed.

Research is also futile if an organization lacks the resources $($money$,$ time and staff$)$ to follow up on research results. For instance, if research to uncover market opportunities reveals that a specific market is very attractive, but the organization does not have