The role and significance of research in aiding business decision is very significant. The question one might ask here is about the critical importance of research in different areas of management. Is it most relevant in marketing? Do financial and production decisions really need research assistance? Does the method or process of research change with the functional area?
The answer to all the above questions is NO. Business managers in each field— whether human resources or production, marketing or finance—are constantly being confronted by problem situations that require effective and actionable decision making.
Most of these decisions require additional information or information evaluation, which can be best addressed by research. While the nature of the decision problem might be singularly unique to the manager, organization and situation, broadly for the sake of understanding, it is possible to categorize them under different heads.
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This is one area of business where research is the lifeline and is carried out on a vast array of topics and is conducted both in-house by the organization itself and outsourced to external agencies. Broader industry- or product-category-specific studies are also carried out by market research agencies and sold as reports for assisting in business decisions. Studies like these could be:
However, it is to be understood that the above-mentioned areas need not always be outsourced; sometimes they might be handled by dedicated research or new product development department in the organizations.
Other than these, an organization also carries out researches related to all four Ps of marketing, such as:
These days, with the onset of increased competition and the need to convert customers into committed customers, Customer Relationship Management (CRM), customer satisfaction, loyalty studies and lead user analysis are also areas in which significant research is being carried out.
Human Resources (HR) and organizational behaviour is an area which involves basic or fundamental research as a lot of academic, macro-level research may be adapted and implemented by organizations into their policies and programmes.
Applied HR research by contrast is more predictive and solution-oriented. Though there are a number of academic and organizational areas in which research is conducted, yet some key contemporary areas which seem to attract more research are as follows:
Critical success factor analysis and employer branding are some emerging areas in which HR research is being carried out. The first is a participative form of management technique, developed by Rockart (1981) in which the employees of an organization identify their critical success factors and help in customizing and incorporating them in developing the mission and vision of their organization.
The idea is that a synchronized objective will benefit both the individual and the organization, and which will lead to a commitment and ownership on the part of the employees. Employer branding is another area which is being actively investigated as the customer perception (in this case it is the internal customer, i.e., the employee) about the employer or the employing organization has a strong and direct impact on his intentions to stay or leave.
Thus, this is a subjective qualitative construct which can have a hazardous effect on organizational effectiveness and efficiency.
The area of financial and accounting research is so vast that it is difficult to provide a pen sketch of the research areas.
In this section, we are providing just a brief overview of some research topics:
Considering the nature of the decision required in this area, the research is a mix of historical and empirical research. Behavioural finance is a new and contemporary area in which, probably, for the first time subjective and perceptual variables are being studied for their predictive value in determining consumer sentiments.
This area of management is one in which quantifiable implementation of the research results takes on huge cost and process implications. Research in this area is highly focused and problem specific. The decision areas in which research studies are carried out are as follows:
This area of management also invites academic research which might be macro and general but helps in developing technologies, such as JIT (Just-In-Time) technology and EOQ (Economy Order Quantity)—an inventory management model which are then adapted by organizations for optimizing operations.
Business management being an integrated amalgamation of all these and other areas sometimes requires a unified thought and approach to research. These studies require an open orientation where experts from across the disciplines contribute to and gain from the study.
For example, an area, such as new product development requires the commitment of the marketing, production and consumer insights team to exploit new opportunities.
Other areas requiring cross-functional efforts are:
