Research methodology notes +dssmis

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RESEARCH METHODOLOGY Paper code: 2.25/5.85/3.33

Unit-I Introduction; meaning and nature of research; significance of research in business decision making, identification and formulation of research problem, setting objectives and formulation of hypotheses. Qu. 1. Research is a careful investigation or inquiry through search for new facts in any branch of knowledge”. Discuss in the light of nature and significance of research. Ans Research in common parlance refers to a search for knowledge. The Advance Learner’s Dictionary of Current English defines the research as “careful investigation or inquiry through search for new facts in any branch of knowledge”. Redman and Mory defines research as “Systemized efforts to gain new knowledge”. Some people consider research as a movement, a movement from the known to unknown. According to Clifford Woody research compromises defining and redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. In general ‘research refers to the systematic method consisting of enunciation the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and researching certain conclusions ether in the form of solutions towards the concerned problem or in certain generalization for some theoretically formulation. Objectives: The main aim of research is to find out the truth which is hidden and has not been discovered yet. The research objectives are:

• To gain familiarity with a phenomenon or to achieve new insight into it studies with this object in view are termed as exploratory or formulative research studies.

• To portray accurately the characteristics of particular individual, situation or group. These are called descriptive research studies.

• To determine the frequency with which something occurs or with which it is associated with something else. This study is known as diagnostic research study.

• To test a hypothesis of a casual relationship between variables. Such study is known as testing research studies.

Motivation in Research: The possible motives for doing research may be either one or more of the following:

• Desire to get a research degree along with its consequential benefits. • Desire to face the challenge in solving the unsolved problems, i.e. concern over practical

problems initiates research. • Desire to get intellectual joy of doing some creative work. • Desire to be of service of society. • Desire to get respectability.

Types of Research: The basic types of research as follows: (a) Descriptive Vs Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. Its major purpose is description of state of affaires, as it exists at present. Analytical researchers have to use facts or information already available and analyse these to make a critical evolution of material. (b) Applied Vs Fundamental: applied aims at finding solution for an immediate problem facing a society or an industrial or business organisation. Research to identify social, economic or political trends that may affect a particular institution or the marketing research are the examples of applied research. Fundamental is mainly concerned with generalization and with the formulation of theory. Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research. (c) Quantitative Vs Qualitative; Quantitative is based on measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative is based on the qualititative phenomena i.e. phenomena relating to or involving quality or kind. (d) Conceptual Vs Empirical: Conceptual research is related to some abstract ideas or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing one. Empirical relies on experience or observation alone, often without due regards for system and theory. It is data based on research coming up with conclusions which are capable of being verified by observation or experiments. (e) Other types of research: All types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, on the

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environment in which research is done, or on the basis of some other similar factors. There are many other types of research based on their occurrence such as one-time research, field-setting research, clinical or diagnostic, historical and conclusion-oriented research etc. Significance of Research: All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry and inquiry leads to invention. Some of the significance in various fields are as follows: (a) Scientific and Inductive: Research inculcates scientific and inductive thinking and it promotes the development of logical habit of thinking and organisation. (b) Aid to Economics Policy: The role of research in several fields of applied economics, whether related to business or to the economy as a whole has greatly increased in modern times. The increasingly complex nature of business and government has focused attention on the use of research in solving operational problems. Research as an aid to economic policy has gained added importance. (c) Basis for Policies: Research provides the basis for nearly all government policies in our economic system. For instance, govt;s budget rest in part on an analysis of the need and desire of people and on the availability of revenues to meet these needs. The cost of need has to be equated to probable revenues and this is a field where research is most needed. (d) Operational and Planning: Research has its special significance in solving various operational and planning problems of business and industry. Operation research refers to application of mathematical, logical and analytical techniques to the solution of business problems of cost minimization or profit maximization or optimization problems. Business budgeting, which ultimately results in a projected profit and loss account, is based mainly on sales estimates which in turn depend on business research. Thus research replaces intuitive business decisions by more logical and scientific decisions. (e) Social Relationship: Research is equally important for social scientists in solving social relationship and in seeking answers to social problems. Research in social science is concerned both with knowledge for its own sake and with knowledge for what it can contribute to practical concerns. (f) To those student who are to write a master or Ph.D. thesis, research may mean careerism or a way to attain high position in the social structure. (g) To professional in research methodology, I may mean a source of livelihood. (h) To philosophers and thinkers, it may mean the outlet for new ideas and insight. (j) To literary man and women, it may mean the development of new styles and creative work. (k) To analysts and intellectuals, it may mean the generalisation of new theories. Qu. 2. Define research problem? Explain the techniques of defining research problem. Ans. A research problem, in general, refers to some difficulties which a researcher experience in the context of either a theoretical or practical situation and wants to obtain a solution for the same. The components of research problems are as follows:

• There must be an individual or a group which has some problem. • There must be some objectives to be attained. If one wants nothing, one can not have a

problem. • There must be alternative means for obtaining the objectives one wishes to attain. It means there

must be two means available to a researcher for if he has no choice of means, he can not have a problem.

• There must remain some doubt in the mind of a researcher with regard to the selection of alternatives

• There must be some environment to which the difficulty pertain. Thus the research problem is one that requires a researcher to find out the best solution for the given problem, i.e. to find out by which course of action the objective can be attained. Identifying the Problem: The research problem taken for study must be carefully identified. Following points may be observed while identifying a problem:

• The subject of the problem should not be overdone, for it will be difficult task to through any new light on such a case.

• Controversial subjects should not become the choice of an average researcher. • Too narrow and too vogue problem should be avoided. • The subject of the problem should be familiar and feasible so that the related research material or

research resources are within one’s reach. • The study of problem should fall within the budget he can afford. • A brief feasibility study must be undertaken to identify a problem. The subject or the problem

identified or selected must involve the researcher and must have an uppermost place in his mind so that he may take all the pains needed for the study.

Necessity of Defining a Problem: A problem clearly stated is a problem half solved. The problem to be investigated must be defined unambiguously for that will help to discriminate relevant data from the

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irrelevant ones. A proper definition of the research problem will enable the researcher to be on the track whereas an ill-defined problem may create hurdle. Question like:

• What data are to be collected? • What characteristics of data are relevant and need to be studied? • What relations are to be explored? • What techniques are to be used for the purpose?

And similar other questions may crop up in researcher’s mind that can well plan his strategy and find answer to these questions. In fact formulation of problem is often more essential than solution. It is only on careful detailing the research problem that we can work out the research design and can smoothly carry on all the consequential steps involved while doing research. Techniques involved in Defining a problem: The research problem should be defined in a systematic manner, giving due weightage to all relating points. The technique for the purpose involves the following steps one after the other: (a) Statement of problem in a general way: The problem should be stated in a broad general way, keeping in view either some practical concern or some scientific or intellectual interest. The problem stated in broad way may contain various ambiguities which must be resolved by cool thinking and rethinking over the problem. At the same time feasibility of particular solution has to be considered and be kept in view while stating the problem. (b) Understanding the nature of problem: The next step in defining the problem is to understand its origin and nature clearly. The best way of understanding the problem is to discuss with those who first raised it in order to find out how the problem originally came about and with what objective in view. The researcher must also keep in mind the environment within which the problem is to be studied and understood. (c) Surveying the available literature: All available literatures concerning the problem at hand must necessarily be surveyed and examined before a definition of research problem is given. He must devote sufficient time in reviewing of research already undertaken on related problem. Studies on related problem are useful for indicating the types of difficulties that may be encountered in the present study as also the possible analytical shortcoming. (d) Defining the ideas through discussions: Discussion concerning a problem often produces useful information. Various new ideas can be developed through such an exercise. People with rich experience are in position to enlighten the researcher on different aspect of his proposed study and their advice and comments are usually invaluable to the researcher. (e) Rephrasing the research problem: This is last step of defining a problem. The researcher must sit to rephrase the research problem into a working proposition. Once the nature of problem has been clearly understood, the environment has been defined, discussions over the problem have taken place and the available literature has been surveyed and examined, rephrasing the problem into analytical or operational terms is not a difficult task. In addition of the above following points must also be observed while defining a research problem:

• Technical words and terms or phrases, with special meanings used in the statement of the problem, should be clearly defined.

• Basic assumptions relating to the research problem should be clearly stated. • A straight forward statement of the value of the investigation should be provided. • The suitability of time-period and the sources of data available must also be considered by the

researcher in defining a problem. • The scope of the investigation or the limit within which the problem is to be studied must be

mentioned explicitly in defining a research problem. Qu. 3. Define Hypothesis? Explain the types, needs and importance? What are the difficulties in formulation of hypothesis? Ans. Hypothesis: It is a theory entertained in order to study the facts and examine the validity of the theory. According to George Caswell,”Hypothesis is a summary temporary and imaginary related to subject of study”. According to Good and Hatt, “Hypothesis is a proposition which can be put to test to determine its validity”. According to Poline V Young, “A provisional central idea which becomes the basis for fruitful investigation is known as a working hypothesis”. According to Bernard and Phillips, “Tentative statements about relationship among phenomena hypothesis have been called ‘question put to nature’ are fundamental in scientific research”. Thus hypothesis may not be a true one. It is a claim for truth. It is a bridge in the process of inquiry or search which brings with it some felt problem and ends without the resolution of the problem. Origin of Hypothesis: There are many kinds of sources of hypothesis: (a) Individual source: This includes researcher’s own thought, imaginations, sentiments, views and insight.

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(b) External Sources: This consists of sociology, humanities, images which are related to men and their several aspects. (c) General Culture: Culture gives various sources of formulation of hypothesis. It influences the social people thoughts and views. Indian culture is dominated by philosophy and idealism, hence it influences hypothesis and it will help to form hypothesis on the subjects. (d) Scientific Theories: Science also acts as source to various hypotheses. Science has generalisation which is a source of hypothesis. (e) Analogies: Analogies are at times useful to form hypothesis. These analogies can be seen in man and animal alike. (f) Personal Experience: The personal experience of a researcher becomes a source of hypothesis formation. It depends on his views on the problem. The life gained experience is utilised in the study of hypothesis. Need and Importance: The success and effectiveness of a hypothesis depends crucially upon the elimination of unnecessary and irrelevant facts and picking out of relevant facts. TH Huxley makes his significant observation, “those who refuse to go beyond fact rarely get as far as fact”. Almost every great step in history of the science has been made possible by the anticipation of nature, that is, by the invention of hypothesis which, though verifiable, often had very little to start with”. According to Charles Darwin, “No observation is possible if we do not have some hypothesis in mind. He says how odd it is that any one should not see that all observation must be for or against some view, if it is to be of any service”. Importance of hypothesis is as follows:

• With the help of hypothesis, it becomes easy to decide as to what type of data is to be collected and what is to be ignored?

• Hypothesis makes it clear as to what is to be accepted, proved or disproved and that what is the main focus of study.

• It helps the investigator to knowing the direction in which he is to move. Without hypothesis it will be just duping in the dark and not moving in the right direction.

• A clear idea about hypothesis means saving of time, money and energy which otherwise will be wasted, thereby botheration of trial and error will be saved.

• Properly formulate hypothesis is always essential for drawing proper and reasonable conclusions. • It helps in concerning only on relevant factors and dropping irrelevant ones.

Difficulties: Following difficulties are aced while formulating hypothesis: • Ignorance about systems and methods of hypothesis.: If the researcher is not conversant of

systems and methods of formulating a hypothesis, then he will be facing difficulties in formulating the hypothesis.

• Lack of Knowledge: The researcher must have the clear thorough knowledge of the hypothesis. • Lack of Responsibility: Lack of responsibility and scientific in the basis of hypothesis as the

nature of research subject of social science have elasticity. The researcher must be aware of these facts.

• Lake of Theoretical knowledge: Not using and having theoretical knowledge is another difficulty in formulating hypothesis.

Limitation: Following are the limitations of hypothesis: • Researcher collects facts accepting hypothesis as final guide, this is against scientific nature. • In commencing stages researcher collects such facts which are quite useless and deleterious in

the end. • Researcher forwards the facts after breaking and not changing the hypothesis on the basis of real

facts which causes results neither correct nor trustful. • His own view will favour his interest which will penetrate his studies so that neutrally and

objectivity is not present. • In the end, the challenges given by wasteway to researcher must be remembered those

hypotheses are those sleep giving acts which helps to give sleep o unconscious minds. Types: The important types of hypothesis are as under: (a) Explanatory or Descriptive Hypothesis: A hypothesis may be about the cause of a phenomenon or about the law of which it is an instance. A hypothesis about cause is explanatory and about law is descriptive. (b) Tentative Hypothesis: When a incident can not be fully understood because of technical difficulties, we make tentative hypothesis about it and see how far this is successful in explaining. Some time simultaneously we test two or more hypothesis. The famous hypothesis about propagation of light, namely wave theory and corpuscular theory of light both explain the phenomenon of light but none of them is final. They are tentative.

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(c) Representative Fiction: according to Bain, “ Some hypothesis consist of assumptions as to the minute structure and operation of bodies. From the nature of the case, these assumptions can never be proved by direct means. There only merit is their suitability to express the phenomenon. These are ‘Representive Fictions’. Einstein’s formula E= Mc2 is an instance of representative fiction. The hypothesis is based upon imaginative reasoning and it primarily involves thinking without the help of concrete instance. That is why hypothetical reasoning is abstract. A hypothesis which proves to be correct becomes law or theory. The law of gravitor was a hypothesis in Newton’s mind but when it proved to be true, it became a law. Unit-II

Research design and data collection; research designs – exploratory, descriptive, diagnostic and experimental data collection; universe, survey population, sampling and sampling designs. data collection tools- schedule, questionnaire, interview and observation, use of SPSS.

RESEARCH DESIGN: The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as ‘research design’. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. According to Pauline V Young, “The logical and systematic planning and directing a piece of research is called research design”. First, it is the plan that specifies the sources and types of information relevant to the research questions. Second, it is strategy or blueprint specifying which approach will be used for gathering and analysing the data. Finally, since most business research studies have time and economic constraint, both time and cost budget are typically included. Need for Research Design: It is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximum information with minimal expenditure of efforts, time and money. Research design stands for advance planning of the methods to be adapted for collecting the relevant data and technique to be used in their analysis keeping in view the objective of the research and the availability of staff, time and money. A research design usually involves he consideration of the following factors:

• The mean for obtaining information. • The availability and skills of the researcher and his staff, if nay. • The objective of the problem to be studied. • The nature of the problem to be studied. • The availability of time and money for the research work.

Concepts Relating to Research Design; There are various concepts relating to research design: (a) Dependent and Independent Variables: A concept that can take on different quantitative values is called variables. If one variable depends upon other variable, it is termed as dependent variable and the variable that is antecedent to the dependent is termed as independent variable. (b) Extraneous Variable: Independent variables that are not related to the purpose of the study and which may affect the dependent variables are termed as extraneous variables. (c) Control: One important characteristics of a good research is to minimise the influence or effect of extraneous variables. The technical term ‘control’ is used when we design the study minimizing the effect of extraneous variables. (d) Confounded Relationship: Where the dependent variable is not free from the influence of extraneous variables the relationship between the dependent and independent variables, it said to be confounded by an extraneous variables. (e) Research Hypothesis: When a prediction or a hypothesized relationship is to be verified by scientific methods, it is termed as a research hypothesis. It must contain at least one independent and one dependent variable. (f) Experimental and Non-experimental Hypothesis Testing Research: When the purpose of a research is to test a research hypothesis, it is termed as ‘hypothesis-testing research’. It may be of experimental design or of non-experimental design. (g) Experimental and Control Groups: In an experimental hypothesis-testing research, when a group is exposed to usual condition, it is termed as ‘control group’ but when exposed to some novel or special condition, it is termed as ‘experimental group’. (h) Treatments: Treatments are the different conditions under which experimental and control group are put. If we want to determine through an experiment the comparative impact of three varieties of fertilizers on yield of rice, in that case the three varieties of fertilizers will be treated as three treatments.

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(j) Experiments: An experiment is the process of examining the truth of a statistical hypothesis relating to some research problem. If we want of determine the impact of a fertilizer on the yield of a crop, it is called a case of absolute experiment, but if we want to determine the impact of one fertilizer as compared to the impact of some other fertilizer, then it will be termed as ‘comparative experiment’. (k) Experimental Unit: The pre-determined plots or blocks, where different treatment is applied, are known as experimental units. Types Of Research Design: Research design can be classified into following: (a) Design of Exploratory Studies: The purpose of exploratory studies is to achieve new insight into phenomenon. The major emphasis in those studies is discovery of new insight or ideas. Exploratory studies are more appropriate in the case of problem about which little knowledge is available. An exploratory research will be effective and turn out to be fruitful if the following methods are adapted before the initiation: (i) Survey of Literature: A review of the literature in the patent field and in the fields of related social science. (ii) Experience Survey: The survey of people who have had practical experience with the problem to be studied. (iii) Analysis of Insight-stimulating cases: The analysis of insight-stimulating is suitable in the area where there is little experience to serve as a guide. (b) Descriptive Research: Descriptive studies aim at portraying accurately the characteristics of a particular group or situation. One may take a descriptive study about the work in factory, their age distribution, their community-wise distribution, their educational level, the state of their physical health and so forth. Descriptive study may be concerned with the attitudes towards anything e.g. attitudes towards presidential form of Government, Right to strike, capital punishment etc. Procedure: A descriptive study involves the following steps: (a) Formulating the objectives of study: It is the first step to specify the objectives with sufficient precision to ensure that the data collected are relevant. If this is not done carefully, the study may not provide the desired information. (b) Designing the methods of data collection: The technique for collecting the information must be devised. Several methods such as observation, questionnaire, interviewing, examination of the records etc, with their merits and demerits, are available for the purpose and the researcher may use one or more of these methods. (c) Defining the population and selecting a sample: In most of the descriptive studies the researcher takes out samples and then wishes to make statements about the population on the basis of the sample analysis. Researcher has to select a sample design to be used in his study. Usually one or more forms of probability sampling or random sampling are used. (d) Collection of Data: To obtain data free from errors, checks may be set up to ensure that the data collecting staff perform heir duty honestly and without prejudice. (e) Processing and Analysising of data: The data collected must be processed and analyzed. This includes steps like coding the interview replies, observation, etc, tabulating the data and performing several statistical computations. (f) Reporting the Findings: This is the task of communicating the findings to others and researchers must do it in an efficient manner. The layout of the reports needs to be well planned so that all things relating to research studies may be well presented in simple and effective style. (c) Design of Diagnostic Studies: A diagnostic study is the solution of a specific problem by the researcher of the relevant variables that are associated with it in varying degrees. A diagnostic study, for example, may aim at discovering or analysing the specific problem of the farmers, college teachers, career women or pensioners. While discovering or analyzing the specific problems or needs of these categories of people, the diagnostic study aims to identify the relevant variables associated with the problem or needs. It involves the same steps as the descriptive studies involve. (d) Design of Experimental Studies: The purpose of experimental studies is to test a hypothesis of casual relationship between variables. For an experimental study, two groups are required, and compared in terms of the assured effect of experimental variables. The validity of an experiment depends on the equivalence between the control group and the experimental group chosen . There are two ways of assuring this equivalence: (i) Randomisation (ii) Matching POPULATION: An aggregate of objects or individuals under study is called population. The number of units constituting the population is called the size of population. For example, in the study of agriculture yields, all the cultivated farms together will be population. In the study of socio-economic conditions of a particular village, all families or houses in the village will be population. Type: According to the size of population there are two types of population:

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(a) Finite Population: When number of units in the population is finite, it is called finite population. For example, the population of student enrolled in a year in a college is a finite population as the number of student is finite number. (b) Infinite Population: When the number of units in a population is infinite, it is called infinite population. For example, the number of units produced of a product in continuous process of production is an infinite population. Importance: In any statistical investigation, complete enumeration of the population is rather impracticable. If the population is infinite, complete enumeration is not possible. Also if the units are destroyed in the course of inspection (inspection of crackers, explosives materials etc.), 100% inspection, though possible, is not at all desirable. But even if population is finite or the inspection is not destructive, 100% inspection is not taken recourse to because of multiplicity of causes, viz, administrative and financial implications; time factor etc and we take the help of sampling. Population sampling is quite useful in our day-to-day life. For example, in a shop we assess the quality of sugar, wheat or any other commodity by taking a handful of it from the bag and than decide to purchase it or not. A housewife normally tests the cocked products to find if they are cooked and contains the proper quantity of salt etc. SAMPLING: According to Goode and Hatt, “A sample as the name applies, is a smaller representative of a large whole”. According to Pauline V Young, “A statistical sample is a miniature of cross selection of the entire group or aggregate from which the sample is taken”. According to Bogrdus, “Sampling is the selection of certain percentage of a group of items according to a predetermined plan”. Feature of Sampling Techniques: The sampling techniques have following good features and these bring into relief its value and significance: (a) Scientific Base: It is a scientific because the conclusion derived from the study of certain units can be verified from other units. By taking random sample, we can determine the amount of deviation from the norm. (b) Economy: The sampling technique is much less expensive, much less time consuming than the census technique. (c) Reliability: If the choice of sample unit is made with due care and the matter under survey is not heterogeneous, the conclusion of the sample survey can have almost the same reliability as those of census survey. (d) Detailed study: Since the number of sample units is fairly small, these can be studied intensively and elaborately. They can be examined from multiple of views. (e) Greater Suitability in most Situations: Most of the surveys are made by the techniques of sample survey, because whenever the matter is of homogeneous nature, the examination of few units suffices. This case in majority of situations. Methods of Sampling: The methods of selecting a sample are as follows: (a) Purposive sampling: In this method the investigator has complete freedom to choose his sample according to his wishes and desire. To choose or leave an item for the purpose of study depends entirely upon the wishes of investigator and he will chose items or units which in his judgment are representative of the whole data. This is a very simple technique of choosing the samples and is useful in cases where the whole data is homogeneous and the investigator has full knowledge of the various aspects of the problem. Advantage:

• More representation is possible in this method. • As sample is small in size, the method is less expensive and less time consuming. • The utility of this method increases when few units of universe have special importance. • When units are less in number, sample is profitable

Disadvantages: • Units are selected by researcher at his will. Hence sample is biased. • The error of the sample can not be detected. • Researcher is unable to understand the whole group. • Those hypothesis on which inference of error of sample is attributed, are less used.

(b) Random Sampling: Off all the methods of selecting sample, random sampling technique is made maximum use of and it is considered as the best method of sample selection. Random sampling is made in following ways: (i) Lottery Method: In this the number of data are written on sheet of paper and they are thrown into a box. Now a casual observer selects the number of item required in the sample. For this method it is necessary that sheet of paper should be of equal dimensions. (ii) By Rotating the Drum: In this method, piece of wood, tin or cardboard of equal length and breadth, with number 0,1 or 2 printed on them, are used. The pieces are rotated in a drum and then requisite numbers are drawn by an impartial person.

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(iii) Selecting from Sequential List: In this procedure units are broken up in numerical, alphabetical or geography sequence. Now we may decide to choose 1, 5, 10 and so on , if the division is alphabetical order we decide to choose every item starting from a, b, c and so on. (iv) Tippet’s Number: On the basis of population statistics, Tippet has constructed a random list of four digits each of 10, 400 institutions. These numbers are the result of combining 41,600 population statistics reports. Advantages;

• Due to impartiality, there is possibility of selecting any unit as sample. • Units have the characteristic of universe, hence units are more representative. • Simplicity of method makes no possibility of error. • Error can be known easily • It saves money, time and labour.

Disadvantages: • The selector has no control over the selection of units. The researcher can not contact the far

situated units. • He can not prepare the whole field when the universe is vast. • If units have no homogeneity, the method is not appropriate. • There is no question of alternatives. The selected units can not be replaced or changed.

(c) Stratified Sampling: This method of selecting samples is a mixture of both purposive and random sampling techniques. In this all the data in a domain is spilt into various classes on the basis of their characteristics and immediately thereafter certain items are selected from these classes by the random sampling technique. This technique is suitable in those cases in which the data has sub data and having special characteristics. For example if we wish to collect information regarding income expenditure of the male population strata on the basis of shopkeeper, workers, etc. From these we shall select randomly some units for study of income-expenditure statistics. Process of Stratifying: The stratification of domain or data should be with great care, because the success of the technique depends upon successful stratification. Following points should be born in mind:

• We should process extensive information of all items including in a domain and should know which item make a coherent whole on the basis of similar traits and which others re different from them and why?

• The size of each stratum should be large to enable use of random sampling technique. • In stratifying it must be kept in mind that various strata should have similar relation to the domain

and should be themselves homogeneous. • The various strata should differ from each other should be the same as the proportion of stratum

from the domain. Suppose a domain has four strata, accordingly the proportion of each stratum of domain is ¼. Now if the number of total items of the sample is 64, we shall select 16 items from each stratum and thus the proportion of selected items from each stratum will be ¼.

Advantage: Neither group nor class of importance is totally neglected as units of each are represented in the sample. If different classes are divided properly, selection of few units represents the whole group. On the classification of regional basis, units are not in contact easily. This leads to economy of time and money. There is a facility in substitution of units. If someone is not contacted easily, the other person of the same class can be substituted for him. Such inclusion result will not show any contradicting. Disadvantages:

• The sample does not become representative if selected sample has more or less units of a class. • If the sizes of different group are different, no equal proportional quality can be viewed. • Non-proportional selection leads to more emphasis in the end. During such time researcher ca

be biased, hence samples will not representate. • If group is not expressed properly, the difficulty is seen about the unit to be kept under which

group or class. (d) Quota Sampling: This method of study is not much used. In this method entire data is spilt into as many as there are investigators and each investigator is asked to select certain items from his block and study. The success of this method depends upon the integrity and professional competence of investigators. If some investigators are competent and others are not so competent, serious discrepancies will appear in the study. (e) Multi-Stage sampling: This is not a favoured procedure of sampling. In this items are selected in different stages at random. For example, if we wish to know per acre yield of various crops in U.P., we

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shall begin by studying a single crop in one study. Here we shall begin by making at random selection of 5 districts in the first instance, and then of these 5 districts, 10 villages per districts will be chosen in the same manner. Now in the final stage, again by random selection 5 fields out of every village. Thus we shall examine per acre yield in 250 farms all over U.P. this number can increased or decreased depending upon the opinion of experts. (f) Extensive sampling: This method is virtually same as census except that irrelevant or irascible items are left out. Every other item is examined. For instance, if we are to study the educational levels of Indians, we may leave foreigners living in India from our study. This method has all the merits and demerits of census survey and is very rarely used. (g) Convenience Sampling: This is hit or miss procedure of study. The investigator selects certain item from the domain as per his convenience. No planned efforts are made to collect information. This is method by which a tourist studies generally the country of his visit. He comes across certain people and things, has transaction with them and then tries to generalize about the entire populace in his travelogue. This is essentially unscientific procedure and has no value as a research technique. Summary: The selection of sampling procedure from the above mentioned techniques depends upon the nature, scope, number of units etc in a domain. Also another factor determining our choice is amount of accuracy and refinement desired. SAMPLE DESIGN Definition: A definite plane for obtaining a sample from a given population is called ‘sample design’. It is a technique of selecting items for the sample. It lay down the number of items to be included in the sample. It should be reliable and appropriate for the research study of the researcher. It is determined before data are collected. While developing a sample design, the following points must be taken into consideration: (a) Type of Universe: In developing any sample design, the first step is to define the universe i.e. the set of objects to be studied. The universe may be finite or infinite. (b) Sample Frame: It contains the names of all items of a universe. It should be a representative of the population and should be appropriate, reliable, correct and comprehensive. (c) Sample Unit: It is to be decided before selecting the sample. Sampling units may be geographical, constructional, social and individual. (d) Sample Size: This refers to the number of items to be selected from a universe to form a sample. Sample size should not be very large or too small. It should fulfill the requirements of reliability, efficiency, flexibility and representativeness. While deciding the size of sample, the researcher must consider the population size, the parameter of interest in research study and the budgetary constraints. (e) Parameters of Interest: While determining a sample design, the specific population parameters, which are of interest, must be taken into account by the researcher. For instance the researcher may be interested in estimating the portion of persons with some characteristic in the population or he may be interested in knowing some average or the other measure concerning the population. A sample design is generally affected by all this. (f) Budgetary Constraints: The size as well as the type of sample depends upon the cost consideration. (g) Sampling Procedure: Finally the researcher must decide about techniques to be used in selecting the items for the sample i. e. he must decide the type of sample. This technique stands for the sample design itself. He should select the sample design in such a way that for a given sample size and for a given cost, the sample design has a smaller sampling error. Characteristics:

• Sample design should be such, so that systematic bias can be controlled in a better way. • It should result in a truly representative sample. • It should be viable in the context of funds available for the research study. • It should be such that the results of sample study can be applied, in general, for the universe with

a reasonable level of confidence. • It should result in small sampling error.

Types Of Sampling: There are two types of sample designs: (a) Non-probability Sampling: This procedure does not afford any basis for estimating the probability that each item in the population has been included in the sample. Deliberate sampling, purposive sampling and judgment sampling are non-probability sampling methods. In this type of sampling, item for sample are selected deliberately by the researcher and his choice concerning the items remains supreme. If economic condition of people living in a state is to be studied, a few towns and villages are purposively selected for intensive study on the principle that they can be representative of the entire state. In this type of sampling, there is always the danger of entering personal element into the selection of the sample. The investigator may select a sample which will yield results favourable to his point of view. If such things happen, then the entire inquiry my get spoiled. If the investigator is impartial, and if work without bias, then the results of selected sample may be tolerably reliable. The sampling error can not be

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estimated in this method. This method is generally adapted. In small inquiries and research this method may be adopted. (b) Probability Sampling: It is also known as random sampling or chance sampling. In this, every item has equal chance of being included in the sample. It is a lottery method in which individual units are picked up from the whole group by some mechanical process and not deliberately. The results obtained can be assured in terms of probability, i. e. the error of estimation or the significance of results obtained can be measured. Random sampling ensures the law of statistical regulatory which states that if on an average the sample chosen is a random one, the sample will have the same composition and characteristics as the universe. That is why this sampling is considered as the best techniques of selecting a representative sample. DATA COLLECTIONNecessity: Utmost care should be taken while collecting data because data constitute the foundation on which the superstructure of statistical analysis is built. The results obtained from the analysis are properly interpreted and policy decisions are taken. Hence, if the data are inaccurate and inadequate, the whole analysis may be faulty and decisions taken misleading. Primary Data: Primary data are obtained by specifically designed to fulfill the data needs of the problem at hand. The primary data are those which are collected afresh and for the first time and thus happen to be original in character. For example, data obtained in a population census by the office of Registrar General and Census Commissioner are primary data. Primary source: A primary source is one that itself collects the data. A primary source has more detailed information on the procedure followed in collecting and compiling the data. Advantage: It is advantageous to use the primary source for collecting the data for the following reasons: Primary source shows data in greater detail.

• It frequently includes definitions of terms and units used. • It often includes a copy of schedule and description of procedure used in selecting the sample

and in collecting the data. • The secondary source may contain mistakes due to errors in transcription made when the figures

were copied from the primary source. Methods of Collection: Following are the important methods of collecting primary data: (a) Observation Method: It is the most commonly used method especially in studies relating to behavioural science. In this method information are sought by way of investigator’s own direct observation without asking from the respondent. For instant, in study relating to consumer behaviuor, the investigator instead of asking the brand of wrist watch used by the respondent may himself look at the watch. Type: Three are many types of observations: (i) Structured and Unstructured Observation :The observation which is characterized by a careful definition of the units to be observed, the style of recording the observed information, standardized conditioned of observation and selection of pertinent data of observation is called structured observation. These observations are considered appropriate in descriptive studies. When the observation is to take place these characteristics to be thought of in advance, it is termed as unstructured observation. Theses observations are most likely in exploratory studies. (ii) Participant and Non-participant Observations: These observations are used in social science. If the observer observes by making himself, more or less, a member of the group he is observing so that he can experience what the members of the group experience, the observation is called participant. But when that observer observes as detached emissary without any attempt on his part to experience through participation what others feel, the observation is termed as non-participant. (iii) Controlled and Uncontrolled Observations: If the observation takes place in natural settings it may be termed as uncontrolled observation. The major aim of this type of observation is to get a spontaneous picture of life and person. But when observation takes place according to definite pre-arranged plans, involving experimental procedures, the same than termed as controlled observation. Such observations has tendency to supply formalized data upon which generalization can be built with some degree of accuracy. Advantage of Observation Method: Following are the advantages of observation method: Subjected bias is eliminated, if observation is done correctly.

• The information obtained under this method relates to what is currently happening, it is not complicated by either the past behaviour or future intentions or attitudes.

• This method is independent of respondent’s willingness to respond and as such is relatively less demanding of active cooperation on be part of respondents as happen to be the case in the interview or the questionnaire method. This method is particularly suitable in studies which deal

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with subject, i. e. respondents who are not capable of giving verbal report of their feelings for one reason or the other.

Disadvantage: However observation method has various disadvantages: • It is an expensive method. • Information provided by this method is very limited. • Sometimes unforeseen factors may interfere with the observational task. At times, the fact that

some people are rarely accessible to direct observation creates obstacles for this method to collect data effectively.

(b) Interview Method: There are two types of interview method: (i) Personal Interview: In this method of data collection, there is a face-to-face contact with persons from whom the information is to be obtained. The interviewer asks them questions pertaining to the survey and collects the desired information. The information thus obtained is original in character. Techniques: There are various techniques of personal interviews: Structured and unstructured: this interview involves the use of a set of predetermined questions and of highly standardized techniques of recording. The interviewer follows a rigid procedure laid down, asking questions in a form and prescribed order. It is used in descriptive studies. Unstructured interviews are characterized by a flexibility of approach of questioning. It don’t follow a system of predetermined questions and standardized techniques of recording. The interviewer has greater freedom. This method is used in exploratory or formulative studies. Focused Interview: It is to focus attention on the given experience of the respondents and its effects. The interviewer has freedom to decide the manner and sequence of the questions. These are generally used in the development of hypothesis and constitute a major type of unstructured interviews. Clinical Interviews: It is concerned with broad underlying feelings or motivation or with the course of individual’s life experience. Non-directive interviews: In this the interviewer’s function is simply to encourage the respondent to talk about the given topic with a bare minimum of direct questioning. Advantage: The advantages of personal interview method are as follows:

• More information and too in greater depth can be obtained. • Interviewer by his own skill can overcome the resistance, if any, of the respondents. • There is a greater flexibility under this method as the opportunity to restructure questions is

always there, specially in the case of unstructured interviews. • Observation method can also be applied to recording verbal answers to various questions. • Personal information can as be obtained easily under this method. • Sample can be controlled more effectively as there arises no difficulty of missing return, non-

response generally remains very low. • The interviewer can usually control which person will answer the question. • The interviewer may catch the informant off-guard and thus may secure the most spontaneous

reaction. • The language of interview can be adapted to the ability or educational level of the person

interviewed. • The interviewer can collect supplementary information about the respondent’s personal character

and environment which is often of great value in interpreting results. Disadvantages: There are certain weaknesses of interview method:

• It is very expensive method, especially when large and wide spread geographical sample is taken.

• There remains the possibility of the bias of interviewer as well as that of the respondents. • Certain types of respondents such as important officials or executives may not be easily

approached under this method and to that extant the data may prove inadequate. • This method is more time consuming, especially when the sample is large and recalls upon the

respondents are necessary. • The presence of the interviewer on the spot may over-stimulate the respondent, sometimes even

to the extant that he may give imaginary information just to make the interview interesting. • Under the interview method the organization required for selecting, training, and supervising the

field staff is more complex with formidable problem. • Interview at times may also introduce systemic errors. • Effective interviews pre-suppose proper rapport with respondents that would facilitate free and

frank response. Pre requisite and basic tenets of Interview: For successful implementation of interview method:

• Interviewer should be carefully selected, trained and briefed.

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• They should be honest, hard-working, sincere, and impartial and must posses the technical competence and necessary practical experience.

• Occasional field checks should be made to ensure that interviewer are neither cheating nor deviating from instructions given to them for performing their job efficiently.

• Some provision should be made in advance so that appropriate action may be taken if some of the selected respondents refuse to cooperate or not available when an interviewer calls upon them.

In fact, interviewing is an art governed by certain scientific principle. The interviewer’s approach must be friendly, courteous, conversational and unbiased. (b) Telephone Interview: This method of collecting information consists in contacting respondents on telephone itself. It is not a very widely used method, but plays important part in industrial surveys, particularly in developed regions. Merits: The chief merits of such systems are:

• It is more flexible in comparison to mailing method. • It is faster than other methods. • It is cheaper than personal interviewing method. • Recall is easy, callback are simple and economical. • There is a higher rate of response than what we have in mailing method. • Replies can be recorded without causing embarrassment to the respondents. • Interviewer can explain requirements more easily. • No field staff is required. • Representative and wider distribution of sample is possible. • At times access can be gained to respondents who otherwise can not be contacted.

Demerits: It is not free from demerits: • Little time is given to respondents for considered answers; interview period is not likely to exceed

five minutes in most cases. • Surveys are restricted to respondents who have telephone facilities. • Extensive geographical coverage may get restricted by cost consideration. • It is not suitable for intensive surveys where comprehensive answers are required to various

questions. • Possibility of bias of the interviewer is relatively more. • Questions have to be short and to the point, probes are difficult to handle.

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(c) Questionnaire Method: In this method a list of questions pertaining to the survey is prepared and sent to the various informants by post. The questionnaire contains questions and provides space for answers. A request is made to the informants through a covering letter to fill up he questionnaire and send it back within a specified time. This method is adapted by private individuals, research workers, private and public organisations and even by govt. Merits: This method is most extensively employed in various economic and business surveys. The main merits are as follows:

• There is low cost even when the universe is large and is widely spread geographically. • It is free from the bias of the interviewer; answers are in respondent’s own words. • Respondents have adequate time to give well out answers. • Respondents who are not easily approachable can also be reached conveniently. • Large sample can be made use of and thus the results can be more dependable and reliable.

Demerits: • Low rate of return of the duly filled in questionnaires, bias due to no-response is often

indeterminate. • It can be used only when respondents are educated and cooperating. • There is inbuilt inflexibility because of the difficulty of amending the approach once questionnaires

have been sent. • The control over questionnaire may be lost once it is sent. • There is also the possibility of ambiguous replies or omission of replies altogether to certain

questions, interpretation of omission is difficult. • It is difficult to know whether willing respondents are truly representative. • This method is likely to be the slowest of all.

Requirement of good Questionnaire: The following general principle/requirements are useful in framing questionnaire: (i) Covering Letter: The person conducting the survey must introduce himself and state objective of the survey. A short letter stating the purpose of survey should be enclosed along with the questionnaire. (ii) Number of questions: The number of questions to be included in the questionnaire would strictly depend upon the object and the scope of the investigation and number of the questions should be as small as possible. Because if the questionnaire is lengthy, the rate of response will be lower. (iii) Should be Arranged Logically: The question should be arranged logically so that a natural and spontaneous reply to each is induced. For example it is illogical to ask a person about his income before asking him whether he is employed or not. (iv) Short and Simple: The question should be short and simple to understand and technical terms should be avoided. (v) Personal Question: Personal question should be avoided such as income, income tax is paid etc. (vi) Necessary Instructions: The instructions about the unit of measurement or the time within which questionnaire should be sent back etc should be provided. (vi) Objective Answers: The descriptive questions should be avoided while framing the questionnaire. As far as the question should be of such nature that can be answered easily in ‘yes’ or ‘no’. (vii) Calculation: Question requiring calculation should be avoided. If calculus is included, informant may not answer the questions. (viii) Attractive: The quality of paper used and printing should be of high quality. Sufficient space should be given for answering. (d) Schedule Method: This method of data collection is very much like questionnaire method, with a little difference which lies in the fact that schedules are being filled in by the numerators who are specially appointed for this purpose. These numerators along with schedules go to respondents put to them the questions from the Performa in the order questions are listed and record the replies in the space provided. Numerators explains them the object of the investigation and also removes the difficulties felt by the respondents. The numerators should train to perform their job well and the nature and scope of the investigation should be explained to them thoroughly. The numerators should be intelligent and must posses the capacity of cross examination in order to find out the truth. This method of data collection is very useful in extensive enquiries and can lead to fairly reliable results. It is, however very expensive and is usually adopted in investigations conducted by governmental agencies or by some big organisations. Population census all over the world is conducted through this method. Difference between Questionnaire and Schedule: Both methods are important. The points of difference are: (i) Mode of Sending: The questionnaire generally sent through mail to informants to be answered as specified in a covering letter without further assistant from the sender. The schedule is generally filled out by the research worker or the numerator.

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(ii) Cost Effective: To collect data through questionnaire is relatively cheap and economical since we have to spend money only on preparing the questionnaire and in mailing to the respondents. Schedule is relatively more expensive since considerable amount of money has to be spent in appointing numerators. (iii) Rate of Response: Non-response is usually high in case of questionnaire as many people do not respond and return the question without answering. It is very low in case of schedule method. (iv) Identity: In case of questionnaire it is not always clear who replies, but in schedule the identity of respondent is known. (v) Collection Time: The questionnaire method is likely to be very slow, but in case of schedules the information is collected well in time as these are filled by numerators. (vi) Contacts: Personal contact is generally not possible in case of questionnaire, but in case of schedules direct personal contacts are established with respondents. (vii) Literacy: Questionnaire method can be used only when respondents are literate and cooperative. But in schedules information can be gathered even when the respondents happen to be illiterate. (viii) Area: Wider and more representative distribution of sample is possible under questionnaire method, but in schedules there are usually remains the difficulty in sending numerators over a relatively wide area. (ix) Accuracy: Risk of collecting incomplete and wrong information is relatively more under the questionnaire method, but in schedules, information collected are complete and correct. (x) Results: The success of questionnaire method depends upon the quality of questionnaires itself but in schedules it depends upon the honesty and competence of numerators. (xi) Attraction: In order to attract he attention of respondents, the physical appearance of questionnaire must be quite attractive but this may not be so in case of schedules. (xii) Other Methods: Along with schedules, observation method can also be used but such things are not possible in questionnaire method while collecting data. (e) Other methods Of collecting Data: There are some other methods of data collection particularly used by big business houses I modern time:

• Warranty cards • Distributor or store audits • Pantry audits • Consumer panel • Use of mechanical device • Project techniques • Depth interviews • Contact analysis

Secondary Data: The data which are not originally collected but rather obtained from published or unpublished sources are called secondary data. For example, for the office of Registrar General, the census data are primary whereas for all others, who use such data, they are secondary. The secondary data constitutes the chief material on the basis of which statistical work is carried out in many investigations. Sources: Usually the secondary data are available in following:

• Various publication of central, state and local Govt. • Various publications of foreign Govt or international bodies and their subsidiary organisation. • Technical and trade journals. • Books, magazines and newspapers. • Reports and publications of various associations connected with business and industries, banks,

stock exchange etc. • Reports prepared by research scholars, universities, economists etc in different fields. • Public records and statistics, historical documents. • Diaries, letters, unpublished biographies and autobiographies, public/private individuals etc.

Advantage: • If secondary data are available, they are much quicker to obtain than primary data. • It may be available on some subjects, where it would be impossible to collect primary data. For

example census data can not be collected by individuals is research origination but can only be obtained from Govt publications.

• It is highly convenient to use information which someone else has complied. There is no need for printing data collection forms, hiring numerators, editing and tabulating the results etc.

Disadvantage: • There is a problem in finding the data which are sufficiently accurate. • It is difficult to find data which exactly fit the need of the present project.

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Characteristics: A researcher must see that the secondary data posses following characteristic: (a) Reliability of Data: The reliability can be tested by finding out such things about said data: who collected the data? What were the sources of data? Were they collected by using proper methods? At what time were they collected? Was there any bias of complier? What level of accuracy was desired? (b) Suitability of Data: The researcher must carefully scrutinize the definition of various terms and units of collection used at the time of collecting the data from the primary sources because the data that are suitable for one enquiry may not necessary be found suitable in another inquiry. (c) Adequacy of Data: If the level of accuracy achieved in data is found inadequate for the purpose of the present inquiry, they will be considered as inadequate and should not be used by the researcher. The data will be considered inadequate, if they are related to an area which may be either narrower or wider than the area of present inquiry. Selection of Methods: Keeping in the view of following factors, the researcher should select the methods: (a) Nature, Scope and Object of inquiry: This constitutes the most important factor affecting the choice of a particular method. The method selected should be such that it suits the type of inquiry that is to be conducted by the researcher. This factor is also important in deciding whether the data already available are to be used or the data not yet available are to be collected. (b) Availability of Funds: It determines to a large extent the method to be used for the collection of data. When the funds at the disposal of researcher are very limited, he will have to select a comparatively cheaper method which may not be as efficient and effective as some other costly method. (c) Time Factor: Availability of time has also to be taken into account in deciding a particular method of data collection. Some methods take relatively more time, whereas with others the data can be collected in a comparatively shorter duration. (d) Precision required: Precision required is yet another important factor to be considered at the time of selecting method of collection of data. Unit-III

Scaling techniques; need for scaling, problems of scaling, reliability and validity of scales, scale construction techniques- arbitrary approach, consensus scale approach (Thurston), item analysis approach (Likert) and cumulative scales (Gut man’s Scalogram)

SCALING: Scaling has been defined as a, “Procedure for the assignment of numbers or other symbols to a property of objects in order to impart some of the characteristic of numbers to the properties in question”. Scale is a continuum, consisting of the highest point and lowest point along with the several intermediate points between theses two extremes. These scale-points are so related to each other that when the first point happens to be the highest point, the second point indicates a higher degree in terms of a given characteristics as compared to the third pint indicates a higher degree as compared to the forth points and so on. Scaling Classification Basis: The scaling procedures may be broadly classified on one or more of the following: (a) Subject Orientation: In this a scale may be designed to measure characteristics of the respondent who completes it or to judge the stimulus objects which are presented to the respondent. (b) Response Form: Under this we may classify the scales as categorical and comparative. Categorical scales are also known as rating scales. These scales are used when respondent scores some objects without direct reference to the other objects. Under comparative scales, that are also known as ranking scales, the respondent is asked to compare two objects. (c) Degree of Subjectivity: With this basis the scale data may be based on whether we measure subjective personal preference or simply make non-preference judgment. (d) Scale Properties: Considering sale properties, one may classify as nominal, ordinal, interval and ratio scales. Nominal scales merely classify without indicating order, distance or unique origin. Ordinal scales indicate magnitude relationship of ‘more than’ or ‘less than’ but indicates no distance or unique distance. Interval scales have both order and distance values, but no unique origin. Ratio scales posses all these features. (e) Number of Dimensions: In respect of this basis, scales can be classified as ‘unidimensional’ and ‘multi-dimensional’ scales. In uni-dimensional we measure only one attribute of the respondent or object, whereas multidimensional scaling recognize that an object might be described better by using the concept of an attribute space of ‘n’ dimension, rather than a single-dimension continuum. (f) Scales Construction Techniques: Following are the main techniques by which scales can be developed: (i) Arbitrary Approach: It is an approach where scale is developed on ad hoc basis. This is the most widely used approach.

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(ii) Consensus Approach: Here a panel of judges evaluates the items chosen for inclusion in the instruments in terms of whether they are relevant to the topic area and unambiguous in implication. (iii) Item analysis approach: Under this a number of individual items are developed into a test which is given to a group of respondents. After administering the test, the total scores are calculated for every one. Individual items are than analyzed to determine which item discriminate between persons or objects with high total scores and those with low scores. (iv) Cumulative Scales: These are chosen on the basis of their confirming to some ranking of items with ascending and descending discriminating power. (v) Factor scales: It may be constructed on the basis of intercorelations of items which indicate that a common factor accounts for the relationship between items. Scaling Techniques: Following are some scaling technique: (a) Rating scales: It involves qualitative description of a limited number of aspects of a thing or traits of a person. When we use rating scales, we judge an object in absolute terms against some specified criteria. These ratings may be in such forms as ‘like-dislike’, ‘above-average. Average, below average’ or other classifications with more categories such as ‘like very much-like somewhat-neutral-dislike somewhat-dislike very much’, ‘excellent-good- average-below average-poor’, ‘always-often-occasionally-rarely-never’ and so on. In practice, three to seven point scales are used for simple reason that more points on scale provide an opportunity for greater sensitivity of measurement. Rating scale may be: (i) Graphic Rating Scale: It is quite simple and is commonly used in practice. In this the various points are usually put along the line to form a continuum and the rater indicates his rating by simply making a mark at the appropriate point on a line that runs from line, their function being to assist the rater in performing his job. Limitations: This type of scale has several limitations:

• The respondents may check at almost any position along the line which fact may increase the difficulty of analysis.

• The meaning of terms like ‘very-much’ and ‘somewhat’ may depend upon respondent’s frame of reference so much that the statement might be challenged in terms of its equivalency.

• Several other rating scale variants may also be used. (ii) Numerical Scale: It is also known as itemized rating scale. It present a series of statements from which a respondent selects one as best reflecting his evaluation. These statements are ordered progressively in terms of more or less of some property. Merits: It provides more information and meaning to the rater, and thereby increases reliability. The result obtained from their use compare favourably with alternative methods. It requires less time, are interesting to use and have a wide range of applications. They may also be used with a large number of properties or variables. Limitations: If the respondents are not very careful while rating, errors may occur such as error of leniency, error of central tendency and the error of hallo effects. (b) Ranking Scales: It is also called comparative scales. In this scale we make relative judgments against other similar objects. The respondents under this method directly compare two or more objects and make choice among them. There are two generally used approaches of ranking scales” (i) Method of Paired Comparison: In his the respondent can express his attitude by making a choice between two objects, say between new flavour of soft drink and an established brand of drink. But when there are more than two stimuli to judge, the number of judgments required in a paired comparison is given by this formula: N = n (n-1)/2 where N = numbers of judgments, n= number of stimuli or objects to be judged. (ii) Method of Rank Order: Under this method of comparative scaling, the respondents are asked to rank their choice. This method is easier and faster than the method of paired comparison. For example, with 10 items it takes 45 pair comparisons to complete the task, whereas the method of rank order simply requires ranking of 10 items only. Limitations: There are certain limitations of this method:

• Data obtained through this method are ordinal data and hence rank ordering is an ordinal scale with all its limitations.

• There may be problem of respondents becoming careless in assigning ranks particularly when there are many.

SCALE CONSTRUCTION TECHNIQUES: Some of the important approaches along with the corresponding scales developed under each approach to measure attitude are as follows: Arbitrary Approach: Arbitrary scales are developed on ad hoc basis and are designed largely through the researcher’s own subjective selection of items. The researcher first collects few statements or items

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which he believes are unambiguous and appropriate to a given topic. Some of these are selected for inclusion in the measuring instrument and then people are asked to check in a list the statements with which they agree. Merits: The chief merits of such scales are that:

• They can be developed very easily, quickly and relatively less expensive. • They can be designed to be highly specific and adequate. • Theses are widely used practice.

Demerits: At the same time there are some limitations: • We do not have objective evidence that such scales measure the concepts for which they have

been developed. • We have simply to rely on researcher’s insight and competence.

Consensus scales or Thurstone-type scales: This is developed by LL Thrustone. In this approach the selection of items is made by a panel of judges who evaluate the items in terms of whether they are relevant to the topic area and unambiguous in implication. Procedure: The detail procedure is as under:

• The researcher gathers a large number of statements, usually twenty or more, that express various points of view towards group, institution, idea or practice.

• These statements are then submitted to a penal of judges, each of whom arranges them in eleven groups ranging from one extreme to another in position. Each of judges is requested to place generally in the first pile to place those statements which he thinks are most unfavourable to the issue, in the second pile to place those statements which he thinks are next most unfavourable and he goes on doing so in this manner till in the eleventh pile he puts the statements which he considerers to be the most favourable.

• The sorting of each judge yields a composite for each of the items. In case of marked disagreements between the judges in assigning to an item, that is discarded.

• For items that are retained, each is given its median scales value between one and eleven as established by panel.

• A final selection of statements is then made. For this purpose a sample of statements, whose median scores are spread evenly from one extreme to the other is taken. The statement so selected, constitutes the final scale to be administered to respondents. The position of each statement on the scale is the same as determined by judges.

After developing the scale, the respondents are asked during the administration of the scales to check the statements with which they agree. The median value of the statements that they check is worked out and this establishes their scores or qualifies their opinions. If the values are valid and id the opinionnaire deals with only one attitude dimension, the typical respondents will choose one or several contiguous items to reflect his views. However at times divergence may occur when a statement appears to tap a different attitude dimension. Merit:

• This method has been widely used for developing differential scales which are utilised to measure attitudes towards varied issues like war, religion etc.

• These scales are considered most appropriate and reliable when used for measuring a single attitude.

Demerits: • The cost and efforts required to develop them is an important deterrent. • The values assigned to various statements by the judges may reflect their own attitude. • The method is not completely objective; it involves ultimately subjective decision process.

Summated Scales or Likert-type Scales: These are developed by utilizing the item analysis approach wherein a particular item is evaluated on the basis of how well it discriminates between those persons whose total scores is high and those whose scores are low. Those items or statements that best meet this sort of discrimination test are included in the final instrument. The respondent indicates his agreement or disagreement with each statement in the instrument. Each response is given a numerical score, indicating its favourableness or unfavourableness, and the scores are totaled to measure the respondent’s attitude. Most frequently used summated scales in the study of social attitudes follow the pattern devised by Likert. For this reason they are often referred as Likert-type scales, respondent is asked to respond to each of the statements in terms of several degrees, usually five degrees of agreement or disagreement. For example when asked to express opinion whether one considers his job quite pleasant, the respondent may respondent any one of the following ways; strongly agree, agree, undecided, disagree, strongly disagree. Procedures: The procedure for developing a Likert-type scales are as follows:

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• As a first step, the researcher collects a large number of statements which are relevant to the attitude being studied and each of the statements expresses definite favourableness or unfavouableness to a particular point of view.

• A small group of people from those who are going to be studied finally, are asked to indicate their response to each statement by checking one of the categories of statements.

• The response to various statements are scored in such a way that a response indicative of the most favourable attitude is given the highest scores of 5 and that with the most unfavourable attitude is given lowest score, say 1.

• Then the total scores of each respondent is obtained by adding his scores that he received for separate statements.

• The next step is to array these total scores and find out those statements which have a high discriminatory power. For this purpose the researcher may select two extreme groups to represent the most favourable and least favourable attitudes and are used as criterion group by which to evaluate individual statements. This way we determine which statements consistently correlate with low favorability and which with high.

• Only those statements that correlate with the total test should be retained in the final instrument and all others must be discarded from it.

Advantage: Likert-type scales have several advantages: • It is easy to construct the Likert-type scales in comparison to Thurstone-type scales because

Likert type scales can be performed without panel of judges. • It is considered more reliable because under it respondents answer each statements included in

the instrument • Each statements, included in Likert-type scales, is given an empirical test for discriminating ability

and as such unlike Thrustone-type scales, the Likert-type permits the use of statements that are not manifestly related to the attitude being studied.

• It can easily be used in respondent-centered and stimulus-centered studies. • It takes much less time to construct; it is frequently used by the students of opinion research.

There is a high degree of correlation between Likert-type scales and Thurstone-type scales. Limitations: There are several limitations of the Likert-type scales:

• With this scales, we can simply examine whether respondents are more or less favourable to a topic, but we can not tell how much more or less they are.

• There is no basis for belief that the five positions indicated on the scales are equally spaced. • The interval between ‘strongly agree’ and ‘agree’ may not be equal to the interval between ‘agree’

and ‘undecided’. • The total scores of an individual respondent have little clear meaning since a given total score

can be secured by a variety of answer patterns. • It is unlikely that the respondent can validly react to a short statement on a printed form in the

absence of real life qualifying situations. Cumulative Scales or Louis Guttman’s scalogram analysis: It is like other scales, consists of series of statements to which a respondent express his agreement or disagreement. The special feature of this type is that statements in it form a cumulative series. The statements are related to one another in such a way that an individual, who replies favourably to item no 4, also replies favourably to item no. 3, 2 and 1 and so on. This being so an individual whose attitude is at certain point in cumulative scales will answer favourably all the items on one side of this point, and answer unfavourably all items on the other side of this point. The individual’s scores is worked out by counting the number of points concerning the number of statements he answers favourably. The technique developed by Louis Guttman is known as scalogram analysis, or at times simply ‘scales analyses. Scalogram analysis refers to the procedure for determining whether a set of items forms a unidimensional scale. A scale is said to be unidimensional if the responses fall into a pattern in which endorsement of the items reflecting the extreme position results also in endorsing all items which are less extreme. Under this technique the respondents are asked to indicate in respect of each item whether they agree or disagree with it, and if these items form a unidimensional scale, the response pattern will be as under: Item Number Response Score 4 3 2 1 X X X X 4 - X X X 3 - - X X 2 - - - X 1 - - - - 0

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X = Agree - = Disagree A score of 4 means that the respondent is in agreement with all statements which is indicative of the most favourable attitude. But score 3 would mean that the respondent is not agreeable with item 4 but he agrees with all others. In the same way one can interpret other values of the respondent’s scores. Procedure: The procedure for developing scalogram is as follows:

• The universe of the contents must be defined first of all. • Develop a number of items relating the issue and to eliminate by inspection the items that are

ambiguous, irrelevant or those that happens to be too extreme items. • The third step consists in pre-testing the items to determine whether the issue at hand is scalable.

In a pre-test the respondents are asked to record their opinions on all selected items using a Likert-type- 5 point scale, ranging from ‘strongly agree’ to ‘strongly disagree’. Respondent’s opinionannaire are then arrayed according to total score for analysis and evaluation. If the response forms a cumulative scale, its response category scores should decrease in an orderly fashion as indicated in the above table.

• The next step is again to total the scores for various opinionnaires and to rearray them to reflect any shift in order, resulting from reducing the items, say, from 15 in pre-test to , say, 5 for the final scale. Whether the items or series of statements selected for final scale may be regarded a prefect cumulative, we have to examine on the basis of the coefficient of reproducibility. Guttman has set 0.9 as the level of minimum reproducibility in order to say that the scale meets the test of unidimensionality. He has given the following formula:

Guttman’s Coefficient of Reproducibility = 1-e/n(N) Where e = number of errors n = number of items N = number of cases Advantage: It has several advantages:

• It assures that only single dimension of attitude is being measured. • Researcher’s subjective judgment is not allowed to creep in the development of scale since the

scale is determined by replies of the respondents. • It requires only a small number of items that make such a scale easy to administer. • Scalogram analysis can appropriately be used for personal, telephone or mail surveys.

Disadvantage: There are certain disadvantages or limitations also: • In practice prefect cumulative or unidimensional scales very rarely found and we have only to use

its approximation testing it through coefficient of reproducibility or examining it on the basis of some other criteria.

• This method is not frequently used for the simple reason that its development procedure is tedious and complex.

• Conceptually this analysis is a bit more difficult in comparison to other scaling methods. Unit-IV Interpretation and report writing; introduction, meaning of interpretation, techniques and precautions in interpretation and generalisation report writing- purpose, steps and format of research report and final presentation of the research report. INTERPRETATION: Meaning: The task of drawing inferences from the collected facts after an analysis and or experimental study is called interpretation. Interpretation is the device through which the factors that seems to explain what has been observed by researcher in the course of the study can be better understood. Interpretation provides a theoretical conception which can serve as a guide for further researches. It has two major aspects viz, (i) The efforts to establish continuity in research through linking the results of a given study with those of another, (ii) The establishment of some explanatory concepts. Techniques: The task of interpretation requires a great skill of researcher. The art of interpretation can be achieved through practice and experience. The interpretation techniques involve the following steps: (a) The relation that the researcher has found must be reasonably explained. The researcher must interpret the lines of relationship in terms of the underlying process. He must also try to find out the thread of uniformity that lies under the surface layer of his concept of formulated.

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(b) While interpreting the final results of research study, the extraneous information that he has collected during the study, must be considered. This helps in understanding of the problem under consideration. (c) Before giving final interpretation, the researcher should consult someone who is expert in the concerned study and will not hesitate in pointing out the omission and errors in logical argumentation. Such consultations will result in correct interpretation and thus will enhance the utility of research results. (d) The false generalization of interpretation can be avoided by accomplishing the task of interpretation after considering all the relevant factors affecting the problem. The researcher should not make hurry while interpreting the results, otherwise the interpretation may lead to inaccurate results. Precautions: Even though the data are properly collected and analysed, wrong interpretation would lead to inaccurate conclusion. The following precautions must be taken while interpreting the results of a research process: (a) The researcher should confirm that: (i) The data are appropriate, adequate and trustworthy for drawing inference. (ii) Proper analysis has been done through statistical methods. (iii) The data reflect good homogeneity. (b) The researcher must avoid the errors that possibly arise in the process of interpreting results. The errors may arise due to false generalization or due to wrong interpretation of statistical measures such as the identification of correlation with causation, the application of finding beyond the range of observations, etc. The researcher must be well equipped with and must know the correct use of statistical measure for drawing inference concerning his study. (c) The researcher must always remember that his task is to make the sensitive observations of relevant occurrences and also identify the factors that are unknown to the world. This will enable him to do his job of interpretation more accurately. The broad generalization should be avoided, because the coverage of research may be restricted to a particular time, a particular area and condition. Such restriction must be specified while intepreating the results and then the results must be framed within their limitations. (d) The researcher must always keep in mind that ideally in the course of research study, there should be constant interpretation between empirical observations, theoretical conceptions and initial hypothesis. In the area of interaction between theoretical orientation and empirical observation, the opportunities for originality and creativity lie. (e) The researcher must always remember that the task of interpretation is intertwined with analysis. So he should take the task of interpretation as a special aspect of analysis and accordingly take the precautions which are to be taken while going through the process of analysis i.e. the precautions concerning the reliability of data, computational checks, validation and comparison of results. REPORT WRITING Meaning: Research report s the oral or written presentation of evidence and findings in such detail and form as to be readily understood and assessed by the reader and so to enable him to verify the validity of the conclusions. It also helps the researcher himself to evaluate the success of his research efforts in this process, to clarify and check his own thoughts. Type: Research reports are of several types. This is because research reports vary greatly in length and type. For example, business firms prefers report in letter form just one or two pages in length. There are two types of reports: (a) Technical Report: It emphasis on (i) the method employed (ii) assumptions made in the course of study (iii) the detailed presentation of the findings, their limitations and supporting data. A technical report can be outlined as below:

• Summary of results • Nature of the study • Methods employed • Data • Analysis of data and presentation of findings • Conclusions • Bibliography • Technical appendices • Index.

It should, however, be remembered that even in a technical report simple presentation and ready availability of the findings remain an important consideration and as such liberal use of charts and diagram is considered desirable. (b) Popular report: The popular report is one which gives emphasis on simplicity and attractiveness. The simplification should be sought through clear writing, minimizing of technical, particularly mathematical, details and liberal use of charts and diagrams. Attractive layout along with large print, many

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subheadings, even an occasional cartoon now and then is another characteristics feature of the popular report. General outline of popular report is as follows:

• The findings and their implications: It emphasis in the report is given on the findings of most practical interest and on the implications of these findings.

• Recommendations for action: It is on the basis of the findings of the study is made in this section of the report.

• Objective of study: A general review of how the problem arises is presented along with the specific objectives of the project under study.

• Methods employed: A brief and non-technical description of the methods and techniques used, including a short view of the data on which study is based, is given in this part of report.

• Results: This section constitutes the main body of the report wherein the results of the study are presented in clear and non-technical terms with liberal use of all sorts of illustrations such as charts, diagrams and like ones.

• Technical appendices: More detailed information on method used, forms, etc. is presented in the form of the appendices. But theses appendices are often not detailed if the report is entirely meant for general public.

There can be several variations of the form in which a popular report can be prepared. The only important thing about such report is that it gives emphasis on simplicity and policy implications from the operational point of view. Steps: Research reports are the product of slow, painstaking, accurate inductive work. The steps involved in report writing are: (a) Analysis of subject matter: This is the first step primarily concerned with development of subject. The logical development is made on the basis of mental connection and association between one thing and another by means of analysis. (b) Final outline preparation: It is the next step in writing the report ‘Outlines are the framework upon which long written works are constructed. They are an aid to the logical organisation of the material and a reminder of the points to be stressed in the report’. (c) Preparing of the rough draft: This step happens to be most difficult part of all formal writing. Usually this step requires more time than the writing of the rough draft. The researcher should ‘see whether or not the material, as it is presented, has unity and cohesion, does the report stand upright and firm and exhibit a definite pattern, like marble arch? Or does it resemble an old wall of moldering cement and lose bricks’. He should check the mechanic of writing- grammar, spelling and usage. (d) Preparation of final bibliography: Next in order comes the task of the preparation of bibliography. The bibliography, which is generally appended to the research report, is a list of books in some way pertinent to the research which has been done. The entries in bibliography should be made as follows: For books and pamphlets

• Name of the author, last name first. • Title, underlined to indicate italic. • Place, publisher, and date of publication. • Number of volumes.

Example: Kothari, C.R., Quantitative Techniques, New Delhi, Vikash PUBLISHING House Pvt Ltd., 1978. For magazines and newspapers:

• Name of the author, last name first. • Title of article, in quotation marks. • Name of the periodical, underlined to indicate italics. • The volume or volume and number. • The date of issue. • The pagination.

Example: Robert V., “Coping with Short-term International Money Flows”, The Bankers, London, September, 1971, p.995. (e) Writing the final draft: This constitutes the last step. The final draft should be written in a concise and objective style and in simple language, avoiding vague expression such as “ it seems”, “there may be” and like ones. Illustrations and examples based on common experiences must be incorporated in the final draft as they happen to be most effective in communicating the research findings to others. It must be remembered that every report should be an attempt to solve some intellectual problem and must contribute to the solution of a problem and must add to the knowledge of both the researcher and the reader.

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Layout: The layout of the report means as to what the research report should contain. A comprehensive layout of research report should compromise of following: (A) Preliminary Pages: The preliminary page of a report should carry the following: (a) Title Page: The title page should carry:

• The name of the topic • The relationship of the report to a course • The name of the author • The name of the institution where the report is to be submitted • The date of presentation of the report.

(b) Preface: The preface should be started with the brief introduction. It may include reasons why, in the first place, the topic was selected by researcher. Preface should also contain the objective of the research, sources of data for research study. (c) Acknowledgement: The acknowledgements are written to thank those who have helped the researcher for a variety of reasons. Preface/acknowledgement is usually signed or initiated by its writer. All pages in the preliminary section are numbered with Roman numerals. (d) Table of Contents: Table of content provides an outline of the content of the report. It appears after the preface/acknowledgement. It may contain only a list of chapters and their appropriate Roman numerals, followed by page numbers on which each chapter begins. (B) The Main Body or Text: The main text of the report should have following sections: (a) Introduction: The introductory chapter normally includes the following:

• Statement of problem • Objectives/purpose of the study • Review of literature • Justification for the present study • Scope of the study • Conceptual framework • Methodology adopted • Limitations of study

(b) Statement of Findings and Recommendations: After introduction a research report must contain statement of finding and recommendation in non-technical language so that it can be easily understood by all concerned. If the findings happen to extensive, at this point they should be put in summerised form. (c) Results: A detailed presentations of the findings of the study, with supporting data in the form of tables and charts together with a validation of results, is the next step in writing the main text of report. All relevant results must find a place in the reports. All the results should be presented in a logical sequence and splitted into readily identifiable section. (d) Implications of then results: Towards the end of the main text, the researcher should again put down the results of his research clearly and precisely. He should state the implications that flow from results of the study, for the general reader is interested in the implications for understanding the human behaviour. Such implications have three aspects:

• A statement of inference drawn from the present study which may be expected to apply in similar circumstances.

• The condition of the present study which may limit the extent of legitimate generalization of the inference drawn from the study.

• The relevant questions that still remains unanswered or new questions raised by study along with suggestions for kind of research that would provide answers for them.

(e) Summary: It has become customary to conclude the research report with a very brief summary, resting in brief the research problem, methodology, the major findings and major conclusions drawn from the research results. (C) End Matter: At the end of the report, appendices should be enlisted in respect of all technical data such as questionnaires, sample information, mathematical derivations and the like ones.

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(i) Bibliography: Bibliography of the sources consulted should also be given. It is list of documents, books, periodicals, and manuscripts etc. which have some useful information of the given subject matter. (ii) Glossary: It contains explanation or sample definition of technical terms used in a particular paper. (iii) Appendices: An appendix is used for additional or supplementary material used which has not found place in the main text. (iv) Index: Index should invariably be given at the end of the report. The value of index lies in the fact that it works as a guide to the reader for contents in the report. Format: There are definite and set rules which should be followed in the actual preparation of the research report. The following points are to be taken care of while formatting a research report: (a) Size and physical design: The manuscript should be written on unruled paper 8/12 x 11 in size. If it is to be written by hand, then black or blue –black ink should be used. A margin of at least one and one-half inches should be allowed at left hand at least half an inch at right side of the paper. It is to be typed in double spacing on one side of the page only except for insertion of the long question. (b) Procedure: Various steps in writing the report should be strictly adhered. (c) Layout: Keeping in view the objectives and nature of the problem, the layout of the report should be thought of and decided and accordingly adopted. (d) Treatment of Quotations: Quotations should be placed in quotation mark and double spaced forming an immediate part of the text. But if a quotation is of a considerable length then it should be single-spaced and indented at least half an inch to the right of the normal text margin. (e) The footnotes: Regarding footnotes one should keep the following in view:

• The footnotes serves two purposes viz, the identification of material used in quotations in the report and the notice of material not immediately necessary to body of research report text but still of supplemental value. The modern tendency is to make minimum use of footnotes.

• Footnotes are placed at the bottom of the page on which the reference or quotation which they identify or supplement ends. Footnotes are customary separated from the textual material by a space of half an inch and a line.

• Footnotes should be numbered, usually beginning with 1 in each chapter separately. • Footnotes are always typed in single space though they are divided from one another by double

space. (f) Documentary style: Regarding documentation, the first footnote reference to any given work should be complete in its documentation, giving all the essential facts about the edition used. Such documentary footnotes follow a general sequence. (f) Punctuation and abbreviations: The first item after the number in footnote is author’s name, given in the normal signature order. This is given by a coma. The punctuation and abbreviations should be used correctly. (g) Use of Statistics: A judicious use of statistics in research report is often considered a virtue for it contributes a great deal towards the clarifications and simplification of the material and research results. Statistics are usually presented in the form of tables, charts, bars and line-graphs and pictograms.

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ASSIGNMENT

RESEARCH METHODOLOGY

Qu. 1. Define primary and secondary data. Describe the various methods of collecting primary data and comment on their relative advantages. Ans. Primary Data: Primary data are obtained by specifically designed to fulfill the data needs of the problem at hand. The primary data are those which are collected afresh and for the first time and thus happen to be original in character. For example, data obtained in a population census by the office of Registrar General and Census Commissioner are primary data. Primary source: A primary source is one that itself collects the data. A primary source has more detailed information on the procedure followed in collecting and compiling the data. Advantage: It is advantageous to use the primary source for collecting the data for the following reasons: Primary source shows data in greater detail.

• It frequently includes definitions of terms and units used. • It often includes a copy of schedule and description of procedure used in selecting the

sample and in collecting the data. • The secondary source may contain mistakes due to errors in transcription made when

the figures were copied from the primary source. Secondary Data: The data which are not originally collected but rather obtained from published or unpublished sources are called secondary data. For example, for the office of Registrar General, the census data are primary whereas for all others, who use such data, they are secondary. The secondary data constitutes the chief material on the basis of which statistical work is carried out in many investigations. Sources: Usually the secondary data are available in following:

• Various publication of central, state and local Govt. • Various publications of foreign Govt or international bodies and their subsidiary

organisation. • Technical and trade journals. • Books, magazines and newspapers. • Reports and publications of various associations connected with business and

industries, banks, stock exchange etc. • Reports prepared by research scholars, universities, economists etc in different fields. • Public records and statistics, historical documents. • Diaries, letters, unpublished biographies and autobiographies, public/private individuals

etc. Methods of Collection: Following are the important methods of collecting primary data: (a) Observation Method: It is the most commonly used method especially in studies relating to behavioural science. In this method information are sought by way of investigator’s own direct observation without asking from the respondent. For instant, in study relating to consumer behaviuor, the investigator instead of asking the brand of wrist watch used by the respondent may himself look at the watch. Type: Three are many types of observations: (i) Structured and Unstructured Observation :The observation which is characterized by a careful definition of the units to be observed, the style of recording the observed information, standardized conditioned of observation and selection of pertinent data of observation is called structured observation. These observations are considered appropriate in descriptive studies. When the observation is to take place these characteristics to be thought of in advance, it is termed as unstructured observation. Theses observations are most likely in exploratory studies. (ii) Participant and Non-participant Observations: These observations are used in social science. If the observer observes by making himself, more or less, a member of the group he is observing so that he can experience what the members of the group experience, the observation is called participant. But when that observer observes as detached emissary

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without any attempt on his part to experience through participation what others feel, the observation is termed as non-participant. (iii) Controlled and Uncontrolled Observations: If the observation takes place in natural settings it may be termed as uncontrolled observation. The major aim of this type of observation is to get a spontaneous picture of life and person. But when observation takes place according to definite pre-arranged plans, involving experimental procedures, the same than termed as controlled observation. Such observations has tendency to supply formalized data upon which generalization can be built with some degree of accuracy. Advantage of Observation Method: Following are the advantages of observation method: Subjected bias is eliminated, if observation is done correctly.

• The information obtained under this method relates to what is currently happening, it is not complicated by either the past behaviour or future intentions or attitudes.

• This method is independent of respondent’s willingness to respond and as such is relatively less demanding of active cooperation on be part of respondents as happen to be the case in the interview or the questionnaire method. This method is particularly suitable in studies which deal with subject, i. e. respondents who are not capable of giving verbal report of their feelings for one reason or the other.

(b) Interview Method: There are two types of interview method: (i) Personal Interview: In this method of data collection, there is a face-to-face contact with persons from whom the information is to be obtained. The interviewer asks them questions pertaining to the survey and collects the desired information. The information thus obtained is original in character. Techniques: There are various techniques of personal interviews: Structured and unstructured: this interview involves the use of a set of predetermined questions and of highly standardized techniques of recording. The interviewer follows a rigid procedure laid down, asking questions in a form and prescribed order. It is used in descriptive studies. Unstructured interviews are characterized by a flexibility of approach of questioning. It don’t follow a system of predetermined questions and standardized techniques of recording. The interviewer has greater freedom. This method is used in exploratory or formulative studies. Focused Interview: It is to focus attention on the given experience of the respondents and its effects. The interviewer has freedom to decide the manner and sequence of the questions. These are generally used in the development of hypothesis and constitute a major type of unstructured interviews. Clinical Interviews: It is concerned with broad underlying feelings or motivation or with the course of individual’s life experience. Non-directive interviews: In this the interviewer’s function is simply to encourage the respondent to talk about the given topic with a bare minimum of direct questioning. Advantage: The advantages of personal interview method are as follows:

• More information and too in greater depth can be obtained. • Interviewer by his own skill can overcome the resistance, if any, of the respondents. • There is a greater flexibility under this method as the opportunity to restructure questions

is always there, especially in the case of unstructured interviews. • Observation method can also be applied to recording verbal answers to various

questions. • Personal information can as be obtained easily under this method. • Sample can be controlled more effectively as there arises no difficulty of missing return,

non-response generally remains very low. • The interviewer can usually control which person will answer the question. • The interviewer may catch the informant off-guard and thus may secure the most

spontaneous reaction. • The language of interview can be adapted to the ability or educational level of the person

interviewed. • The interviewer can collect supplementary information about the respondent’s personal

character and environment which is often of great value in interpreting results.

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Pre requisite and basic tenets of Interview: For successful implementation of interview method: • Interviewer should be carefully selected, trained and briefed. • They should be honest, hard-working, sincere, and impartial and must posses the

technical competence and necessary practical experience. • Occasional field checks should be made to ensure that interviewer are neither cheating

nor deviating from instructions given to them for performing their job efficiently. • Some provision should be made in advance so that appropriate action may be taken if

some of the selected respondents refuse to cooperate or not available when an interviewer calls upon them.

In fact, interviewing is an art governed by certain scientific principle. The interviewer’s approach must be friendly, courteous, conversational and unbiased. (b) Telephone Interview: This method of collecting information consists in contacting respondents on telephone itself. It is not a very widely used method, but plays important part in industrial surveys, particularly in developed regions. Advantage: The chief merits/advantages of such systems are:

• It is more flexible in comparison to mailing method. • It is faster than other methods. • It is cheaper than personal interviewing method. • Recall is easy, callback are simple and economical. • There is a higher rate of response than what we have in mailing method. • Replies can be recorded without causing embarrassment to the respondents. • Interviewer can explain requirements more easily. • No field staff is required. • Representative and wider distribution of sample is possible. • At times access can be gained to respondents who otherwise can not be contacted.

(c) Questionnaire Method: In this method a list of questions pertaining to the survey is prepared and sent to the various informants by post. The questionnaire contains questions and provides space for answers. A request is made to the informants through a covering letter to fill up his questionnaire and send it back within a specified time. This method is adapted by private individuals, research workers, private and public organisations and even by govt. Advantage: This method is most extensively employed in various economic and business surveys. The main advantages are as follows:

• There is low cost even when the universe is large and is widely spread geographically. • It is free from the bias of the interviewer; answers are in respondent’s own words. • Respondents have adequate time to give well out answers. • Respondents who are not easily approachable can also be reached conveniently. • Large sample can be made use of and thus the results can be more dependable and

reliable. Requirement of good Questionnaire: The following general principle/requirements are useful in framing questionnaire: (i) Covering Letter: The person conducting the survey must introduce himself and state objective of the survey. A short letter stating the purpose of survey should be enclosed along with the questionnaire. (ii) Number of questions: The number of questions to be included in the questionnaire would strictly depend upon the object and the scope of the investigation and number of the questions should be as small as possible. Because if the questionnaire is lengthy, the rate of response will be lower. (iii) Should be Arranged Logically: The question should be arranged logically so that a natural and spontaneous reply to each is induced. For example it is illogical to ask a person about his income before asking him whether he is employed or not. (iv) Short and Simple: The question should be short and simple to understand and technical terms should be avoided. (v) Personal Question: Personal question should be avoided such as income, income tax is paid etc.

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(vi) Necessary Instructions: The instructions about the unit of measurement or the time within which questionnaire should be sent back etc should be provided. (vi) Objective Answers: The descriptive questions should be avoided while framing the questionnaire. As far as the question should be of such nature that can be answered easily in ‘yes’ or ‘no’. (vii) Calculation: Question requiring calculation should be avoided. If calculus is included, informant may not answer the questions. (viii) Attractive: The quality of paper used and printing should be of high quality. Sufficient space should be given for answering. (d) Schedule Method: This method of data collection is very much like questionnaire method, with a little difference which lies in the fact that schedules are being filled in by the numerators who are specially appointed for this purpose. These numerators along with schedules go to respondents put to them the questions from the Performa in the order questions are listed and record the replies in the space provided. Numerators explains them the object of the investigation and also removes the difficulties felt by the respondents. The numerators should train to perform their job well and the nature and scope of the investigation should be explained to them thoroughly. The numerators should be intelligent and must posses the capacity of cross examination in order to find out the truth. This method of data collection is very useful in extensive enquiries and can lead to fairly reliable results. It is, however very expensive and is usually adopted in investigations conducted by governmental agencies or by some big organisations. Population census all over the world is conducted through this method. Difference between Questionnaire and Schedule: Both methods are important. The points of difference are: (i) Mode of Sending: The questionnaire generally sent through mail to informants to be answered as specified in a covering letter without further assistant from the sender. The schedule is generally filled out by the research worker or the numerator. (ii) Cost Effective: To collect data through questionnaire is relatively cheap and economical since we have to spend money only on preparing the questionnaire and in mailing to the respondents. Schedule is relatively more expensive since considerable amount of money has to be spent in appointing numerators. (iii) Rate of Response: Non-response is usually high in case of questionnaire as many people do not respond and return the question without answering. It is very low in case of schedule method. (iv) Identity: In case of questionnaire it is not always clear who replies, but in schedule the identity of respondent is known. (v) Collection Time: The questionnaire method is likely to be very slow, but in case of schedules the information is collected well in time as these are filled by numerators. (vi) Contacts: Personal contact is generally not possible in case of questionnaire, but in case of schedules direct personal contacts are established with respondents. (vii) Literacy: Questionnaire method can be used only when respondents are literate and cooperative. But in schedules information can be gathered even when the respondents happen to be illiterate. (viii) Area: Wider and more representative distribution of sample is possible under questionnaire method, but in schedules there are usually remains the difficulty in sending numerators over a relatively wide area. (ix) Accuracy: Risk of collecting incomplete and wrong information is relatively more under the questionnaire method, but in schedules, information collected are complete and correct. (x) Results: The success of questionnaire method depends upon the quality of questionnaires itself but in schedules it depends upon the honesty and competence of numerators. (xi) Attraction: In order to attract he attention of respondents, the physical appearance of questionnaire must be quite attractive but this may not be so in case of schedules. (xii) Other Methods: Along with schedules, observation method can also be used but such things are not possible in questionnaire method while collecting data.

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(e) Other methods Of collecting Data: There are some other methods of data collection particularly used by big business houses I modern time:

• Warranty cards • Distributor or store audits • Pantry audits • Consumer panel • Use of mechanical device • Project techniques • Depth interviews • Contact analysis

Qu.2 What do you mean by sampling design? What points should be taken into consideration while developing the sampling? Ans. Definition: A definite plane for obtaining a sample from a given population is called ‘sample design’. It is a technique of selecting items for the sample. It lay down the number of items to be included in the sample. It should be reliable and appropriate for the research study of the researcher. It is determined before data are collected. While developing a sample design, the following points must be taken into consideration: (a) Type of Universe: In developing any sample design, the first step is to define the universe i.e. the set of objects to be studied. The universe may be finite or infinite. (b) Sample Frame: It contains the names of all items of a universe. It should be a representative of the population and should be appropriate, reliable, correct and comprehensive. (c) Sample Unit: It is to be decided before selecting the sample. Sampling units may be geographical, constructional, social and individual. (d) Sample Size: This refers to the number of items to be selected from a universe to form a sample. Sample size should not be very large or too small. It should fulfill the requirements of reliability, efficiency, flexibility and representativeness. While deciding the size of sample, the researcher must consider the population size, the parameter of interest in research study and the budgetary constraints. (e) Parameters of Interest: While determining a sample design, the specific population parameters, which are of interest, must be taken into account by the researcher. For instance the researcher may be interested in estimating the portion of persons with some characteristic in the population or he may be interested in knowing some average or the other measure concerning the population. A sample design is generally affected by all this. (f) Budgetary Constraints: The size as well as the type of sample depends upon the cost consideration. (g) Sampling Procedure: Finally the researcher must decide about techniques to be used in selecting the items for the sample i. e. he must decide the type of sample. This technique stands for the sample design itself. He should select the sample design in such a way that for a given sample size and for a given cost, the sample design has a smaller sampling error. Qu. 3 What do you understand by the term attitude and attitude measurement? Explain. Ans. Attitude: It is the response of an individual towards anything or anyone. In social science studies, while measuring attitude of people we generally follow the techniques of preparing the attitude scale or opinionnaire in such a way that the score of the individual response assigns him a place on a scale. The respondent expresses his agreement or disagreement with a number of statements relevant to the issue. While developing such statements the researcher must note the following two points:

• The statement must elicit response which is psychologically related to the attitude being measured.

• The statement need to be such that they discriminate not merely between extremes of attitudes but also among individuals who differ slightly.

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Attitude Measurement: There is no sure method of measuring attitude, we only try to measure the expressed opinion and than draw inference from it about people’s real feelings or attitudes. Some of the important approaches along with their corresponding scales developed under each approach to measure attitude are as follows: Arbitrary Approach: Arbitrary scales are developed on ad hoc basis and are designed largely through the researcher’s own subjective selection of items. The researcher first collects few statements or items which he believes are unambiguous and appropriate to a given topic. Some of these are selected for inclusion in the measuring instrument and then people are asked to check in a list the statements with which they agree. Merits: The chief merits of such scales are that:

• They can be developed very easily, quickly and relatively less expensive. • They can be designed to be highly specific and adequate. • Theses are widely used practice.

Demerits: At the same time there are some limitations: • We do not have objective evidence that such scales measure the concepts for which

they have been developed. • We have simply to rely on researcher’s insight and competence.

Consensus scales or Thurstone-type scales: This is developed by LL Thrustone. In this approach the selection of items is made by a panel of judges who evaluate the items in terms of whether they are relevant to the topic area and unambiguous in implication. Procedure: The detail procedure is as under:

• The researcher gathers a large number of statements, usually twenty or more, that express various points of view towards group, institution, idea or practice.

• These statements are then submitted to a penal of judges, each of whom arranges them in eleven groups ranging from one extreme to another in position. Each of judges is requested to place generally in the first pile to place those statements which he thinks are most unfavourable to the issue, in the second pile to place those statements which he thinks are next most unfavourable and he goes on doing so in this manner till in the eleventh pile he puts the statements which he considerers to be the most favourable.

• The sorting of each judge yields a composite for each of the items. In case of marked disagreements between the judges in assigning to an item, that is discarded.

• For items that are retained, each is given its median scales value between one and eleven as established by panel.

• A final selection of statements is then made. For this purpose a sample of statements, whose median scores are spread evenly from one extreme to the other is taken. The statement so selected, constitutes the final scale to be administered to respondents. The position of each statement on the scale is the same as determined by judges.

After developing the scale, the respondents are asked during the administration of the scales to check the statements with which they agree. The median value of the statements that they check is worked out and this establishes their scores or qualifies their opinions. If the values are valid and id the opinionnaire deals with only one attitude dimension, the typical respondents will choose one or several contiguous items to reflect his views. However at times divergence may occur when a statement appears to tap a different attitude dimension. Merit:

• This method has been widely used for developing differential scales which are utilised to measure attitudes towards varied issues like war, religion etc.

• These scales are considered most appropriate and reliable when used for measuring a single attitude.

Demerits: • The cost and efforts required to develop them is an important deterrent. • The values assigned to various statements by the judges may reflect their own attitude. • The method is not completely objective; it involves ultimately subjective decision

process.

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Summated Scales or Likert-type Scales: These are developed by utilizing the item analysis approach wherein a particular item is evaluated on the basis of how well it discriminates between those persons whose total scores is high and those whose scores are low. Those items or statements that best meet this sort of discrimination test are included in the final instrument. The respondent indicates his agreement or disagreement with each statement in the instrument. Each response is given a numerical score, indicating its favourableness or unfavourableness, and the scores are totaled to measure the respondent’s attitude. Most frequently used summated scales in the study of social attitudes follow the pattern devised by Likert. For this reason they are often referred as Likert-type scales, respondent is asked to respond to each of the statements in terms of several degrees, usually five degrees of agreement or disagreement. For example when asked to express opinion whether one considers his job quite pleasant, the respondent may respondent any one of the following ways; strongly agree, agree, undecided, disagree, strongly disagree. Procedures: The procedure for developing a Likert-type scales are as follows:

• As a first step, the researcher collects a large number of statements which are relevant to the attitude being studied and each of the statements expresses definite favourableness or unfavouableness to a particular point of view.

• A small group of people from those who are going to be studied finally, are asked to indicate their response to each statement by checking one of the categories of statements.

• The response to various statements are scored in such a way that a response indicative of the most favourable attitude is given the highest scores of 5 and that with the most unfavourable attitude is given lowest score, say 1.

• Then the total scores of each respondent is obtained by adding his scores that he received for separate statements.

• The next step is to array these total scores and find out those statements which have a high discriminatory power. For this purpose the researcher may select two extreme groups to represent the most favourable and least favourable attitudes and are used as criterion group by which to evaluate individual statements. This way we determine which statements consistently correlate with low favorability and which with high.

• Only those statements that correlate with the total test should be retained in the final instrument and all others must be discarded from it.

Advantage: Likert-type scales have several advantages: • It is easy to construct the Likert-type scales in comparison to Thurstone-type scales

because Likert type scales can be performed without panel of judges. • It is considered more reliable because under it respondents answer each statements

included in the instrument • Each statements, included in Likert-type scales, is given an empirical test for

discriminating ability and as such unlike Thrustone-type scales, the Likert-type permits the use of statements that are not manifestly related to the attitude being studied.

• It can easily be used in respondent-centered and stimulus-centered studies. • It takes much less time to construct; it is frequently used by the students of opinion

research. There is a high degree of correlation between Likert-type scales and Thurstone-type scales.

Limitations: There are several limitations of the Likert-type scales: • With this scales, we can simply examine whether respondents are more or less

favourable to a topic, but we can not tell how much more or less they are. • There is no basis for belief that the five positions indicated on the scales are equally

spaced. • The interval between ‘strongly agree’ and ‘agree’ may not be equal to the interval

between ‘agree’ and ‘undecided’. • The total scores of an individual respondent have little clear meaning since a given total

score can be secured by a variety of answer patterns.

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• It is unlikely that the respondent can validly react to a short statement on a printed form in the absence of real life qualifying situations.

Cumulative Scales or Louis Guttman’s scalogram analysis: It is like other scales, consists of series of statements to which a respondent express his agreement or disagreement. The special feature of this type is that statements in it form a cumulative series. The statements are related to one another in such a way that an individual, who replies favourably to item no 4, also replies favourably to item no. 3, 2 and 1 and so on. This being so an individual whose attitude is at certain point in cumulative scales will answer favourably all the items on one side of this point, and answer unfavourably all items on the other side of this point. The individual’s scores is worked out by counting the number of points concerning the number of statements he answers favourably. The technique developed by Louis Guttman is known as scalogram analysis, or at times simply ‘scales analyses. Scalogram analysis refers to the procedure for determining whether a set of items forms a unidimensional scale. A scale is said to be unidimensional if the responses fall into a pattern in which endorsement of the items reflecting the extreme position results also in endorsing all items which are less extreme. Under this technique the respondents are asked to indicate in respect of each item whether they agree or disagree with it, and if these items form a unidimensional scale, the response pattern will be as under: Item Number Response Score 4 3 2 1 X X X X 4 - X X X 3 - - X X 2 - - - X 1 - - - - 0 X = Agree - = Disagree A score of 4 means that the respondent is in agreement with all statements which is indicative of the most favourable attitude. But score 3 would mean that the respondent is not agreeable with item 4 but he agrees with all others. In the same way one can interpret other values of the respondent’s scores. Procedure: The procedure for developing scalogram is as follows:

• The universe of the contents must be defined first of all. • Develop a number of items relating the issue and to eliminate by inspection the items

that are ambiguous, irrelevant or those that happens to be too extreme items. • The third step consists in pre-testing the items to determine whether the issue at hand is

scalable. In a pre-test the respondents are asked to record their opinions on all selected items using a Likert-type- 5 point scale, ranging from ‘strongly agree’ to ‘strongly disagree’. Respondent’s opinionannaire are then arrayed according to total score for analysis and evaluation. If the response forms a cumulative scale, its response category scores should decrease in an orderly fashion as indicated in the above table.

• The next step is again to total the scores for various opinionnaires and to rearray them to reflect any shift in order, resulting from reducing the items, say, from 15 in pre-test to , say, 5 for the final scale. Whether the items or series of statements selected for final scale may be regarded a prefect cumulative, we have to examine on the basis of the coefficient of reproducibility. Guttman has set 0.9 as the level of minimum reproducibility in order to say that the scale meets the test of unidimensionality. He has given the following formula:

Guttman’s Coefficient of Reproducibility = 1-e/n (N) Where e = number of errors n = number of items N = number of cases Advantage: It has several advantages:

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• It assures that only single dimension of attitude is being measured. • Researcher’s subjective judgment is not allowed to creep in the development of scale

since the scale is determined by replies of the respondents. • It requires only a small number of items that make such a scale easy to administer. • Scalogram analysis can appropriately be used for personal, telephone or mail surveys.

Disadvantage: There are certain disadvantages or limitations also: • In practice prefect cumulative or unidimensional scales very rarely found and we have

only to use its approximation testing it through coefficient of reproducibility or examining it on the basis of some other criteria.

• This method is not frequently used for the simple reason that its development procedure is tedious and complex.

• Conceptually this analysis is a bit more difficult in comparison to other scaling methods. Qu. 4 Discuss with example ‘Exploratory Research’ and ‘Descriptive Research’. Ans. Exploratory Research : It is also termed as formulative research studies. The main purpose of such studies is that formulating a problem for more precise investigation of developing the working hypothesis from an operational point of view. The major emphasis in such studies is on the discovery of ideas and insights. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study. Inbuilt flexibility in research design is needed because the research problem, broadly defined initially, is transformed into one with more precise meaning in exploratory studies, which fact may necessitate changes in the research procedure for gathering relevant data. Methods: Generally, the three following methods in the context of research design for such studies are explained: (a) Survey of Literature: The survey of concerning literature happens to be the most simple and fruitful method of formulating the research problem or developing hypothesis. Hypothesis stated by earlier researchers may be reviewed and their usefulness be valuated as a basis for further research. In this way the researcher should review and build upon the work already done by others, but in case where hypothsises have not yet been formulated, his task is to review the available material for deriving the relevant hypothesis from it. (b) The Experience Survey : Those people who are already in a specific field acquire experience with practical problem faced by them in the field. For example, a share broker has a first hand knowledge about ups and down in his field. So by interviewing such people we can gather more information within less time and cost. (c) Analysis of Insight-stimulating: The sample selected method should be faithful in method of insight stimulation. The attitude of an investigator in social science should be one of alert receptivity, of seeking rather than testing. He should realies that his investigation is constantly in process of reformation and redirection as new information is obtained. Besides, the bibliographical survey of studies, already made in one’s area of interest, may as well be made by the researcher for formulating the problem. He should also make an attempt to apply concepts and theories developed in different research context to the area in which he himself is working. Sometimes the work of creative writers also provides a fruitful ground for hypothesis formulation and such may be looked into by the researchers. Descriptive Research: Descriptive studies aim at portraying accurately the characteristics of a particular group or situation. One may take a descriptive study about the work in factory, their age distribution, their community-wise distribution, their educational level, the state of their physical health and so forth. Descriptive study may be concerned with the attitudes towards anything e.g. attitudes towards presidential form of Government, Right to strike, capital punishment etc. Procedure: A descriptive study involves the following steps: (a) Formulating the objectives of study: It is the first step to specify the objectives with sufficient precision to ensure that the data collected are relevant. If this is not done carefully, the study may not provide the desired information.

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(b) Designing the methods of data collection: The technique for collecting the information must be devised. Several methods such as observation, questionnaire, interviewing, examination of the records etc, with their merits and demerits, are available for the purpose and the researcher may use one or more of these methods. (c) Defining the population and selecting a sample: In most of the descriptive studies the researcher takes out samples and then wishes to make statements about the population on the basis of the sample analysis. Researcher has to select a sample design to be used in his study. Usually one or more forms of probability sampling or random sampling are used. (d) Collection of Data: To obtain data free from errors, checks may be set up to ensure that the data collecting staff perform heir duty honestly and without prejudice. (e) Processing and Analysising of data: The data collected must be processed and analyzed. This includes steps like coding the interview replies, observation, etc, tabulating the data and performing several statistical computations. (f) Reporting the Findings: This is the task of communicating the findings to others and researchers must do it in an efficient manner. The layout of the reports needs to be well planned so that all things relating to research studies may be well presented in simple and effective style. Qu. 5 Describe the layout of research report, covering all relevant points in brief. Ans. The layout of the report means as to what the research report should contain. A comprehensive layout of research report should compromise of following: (A) Preliminary Pages: The preliminary page of a report should carry the following: (a) Title Page: The title page should carry:

• The name of the topic • The relationship of the report to a course • The name of the author • The name of the institution where the report is to be submitted • The date of presentation of the report.

(b) Preface: The preface should be started with the brief introduction. It may include reasons why, in the first place, the topic was selected by researcher. Preface should also contain the objective of the research, sources of data for research study. (c) Acknowledgement: The acknowledgements are written to thank those who have helped the researcher for a variety of reasons. Preface/acknowledgement is usually signed or initiated by its writer. All pages in the preliminary section are numbered with Roman numerals. (d) Table of Contents: Table of content provides an outline of the content of the report. It appears after the preface/acknowledgement. It may contain only a list of chapters and their appropriate Roman numerals, followed by page numbers on which each chapter begins. (B) The Main Body or Text: The main text of the report should have following sections: (a) Introduction: The introductory chapter normally includes the following:

• Statement of problem • Objectives/purpose of the study • Review of literature • Justification for the present study • Scope of the study • Conceptual framework • Methodology adopted • Limitations of study

(b) Statement of Findings and Recommendations: After introduction a research report must contain statement of finding and recommendation in non-technical language so that it can be easily understood by all concerned. If the findings happen to extensive, at this point they should be put in summerised form. (c) Results: A detailed presentations of the findings of the study, with supporting data in the form of tables and charts together with a validation of results, is the next step in writing the main

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text of report. All relevant results must find a place in the reports. All the results should be presented in a logical sequence and splitted into readily identifiable section. (d) Implications of then results: Towards the end of the main text, the researcher should again put down the results of his research clearly and precisely. He should state the implications that flow from results of the study, for the general reader is interested in the implications for understanding the human behaviour. Such implications have three aspects:

• A statement of inference drawn from the present study which may be expected to apply in similar circumstances.

• The condition of the present study which may limit the extent of legitimate generalization of the inference drawn from the study.

• The relevant questions that still remains unanswered or new questions raised by study along with suggestions for kind of research that would provide answers for them.

(e) Summary: It has become customary to conclude the research report with a very brief summary, resting in brief the research problem, methodology, the major findings and major conclusions drawn from the research results. (C) End Matter: At the end of the report, appendices should be enlisted in respect of all technical data such as questionnaires, sample information, mathematical derivations and the like ones. (i) Bibliography: Bibliography of the sources consulted should also be given. It is list of documents, books, periodicals, and manuscripts etc. which have some useful information of the given subject matter. (ii) Glossary: It contains explanation or sample definition of technical terms used in a particular paper. (iii) Appendices: An appendix is used for additional or supplementary material used which has not found place in the main text. (iv) Index: Index should invariably be given at the end of the report. The value of index lies in the fact that it works as a guide to the reader for contents in the report.

DECISION SUPPORT SYSTEM AND

MANAGEMENT INFORMATION SYSTEM

Qu. 1 What is the decision support system? What are the components of DSS? Ans. Decision support system: It is an information system that offers a kind of information that may not be predictable, business professional may need. These systems do not produce regularly scheduled management reports. DSS assist managers who must make decisions. A decision is considered unstructured, if there are no clear procedures for making the decisions and if not all the factors are to be considered in the decision can be identified in advance. Judgment of the manager plays an vital role where the problem is not structured. DSS supports, but does not replace the judgment of the manager. Components : Following are the components of the Decision Support System : (a) Database Management System (DBMS): To solve a problem the necessary data may come from internal or external database. In an organisation, internal data are generated by a system such as TPs and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources). (b) Model Management system : It stores and successes models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organisation. Forecasting demand of a product or service etc. (c) Support Tools : Support tools like online help, pull down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system. Steps To Construct A Decision Support System : The steps to construct a DSS are as follows:- (a) DSS generator :- It is comprises of programmes such as management tools, electronic spreadsheet, report generators, statistical packages, graphical package, query languages and

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model building tools that helps the development of DSS. Some known DSS generators are FOCUS, Excel and Lotus 1-2-3. (b) DSS Shells : It is a programme used to build a customized DSS. Shells eliminate the need for developing DBMS model management system. A user can simply connect the shell with the appropriate external and internal database and input the appropriate models in order to have a fully functioned DSS. The shells have become more users friendly. (c) Custom made Software : These are designed and developed by organisations, who are committed to the DSS technology but can not find a suitable generator are shells. The software is developed by using a procedural language, such as ‘C’ or fourth generation language (4 GL) such as FOCUS. Organisation may choose to combine shells and customized software. Types: Types of decision support system are as under :- (a) Status Inquiry System : The number of decisions in operational managements and some at middle level are such that they are based on one or two aspect of decision making situation. It does not call for any elaborate computations, choice etc. for decision making. (b) Data Analysis System : These systems are based on comparative analysis and makes use of formula or an algorithm. But these processes are not structured and therefore, vary. The cash flow analysis, inventory analysis are the examples. (c) Information Analysis System : In this system data is analysed and the information report is generated. The report may have some exceptions. The sales analysis, accounts receivable systems, market analysis are some of the examples. (d) Accounting System : These systems are not necessarily required for decision making but desirable to keep track of the major aspects of the business or a function. (e) Model Based System : These systems are simulation models or optimization models for decision- making. These decisions generally are one time and infrequent and provide general guidelines for operation or management. Support provided by DSS: Following supports are provided by DSS :- (a) DSS provide support for various managerial levels, ranging from top executive to line managers. (b) It provides to individuals as well as to group. Less structured problems often requires the involvement of several individuals from different departments and organisation level. (c) DSS provides support to several independent and sequential decisions. (d) DSS supports all phases of decision making process, intelligence, design, choice and implementations. (e) DSS are adaptive over time. The decision maker should be reactive, able to confront changing conditions quickly and adapt the DSS to meet these changes. DSS are user friendly. So user can add / delete, change or rearrange the basic elements. (f) DSS supports a variety of decision making process and styles. (g) Users must feel at home with DSS. User- friendliness, strong graphic capabilities and English like interactive human machine interface can greatly increase the effectiveness of DSS. (h) DSS attempts to improve the effectiveness of decision making, rather than its efficiency (cost) of making decision. (j) The decision maker has complete control over all steps of decision making process in solving problem. A DSS specifically aims to support and not to replace the decision maker. (k) End users should be able to construct and modify simple systems by themselves. Larger systems can be built with assistance from information system (IS) specialists. (l) A DSS usually utlises models for analyzing decision making situations. The modeling capability enables experimenting with different strategies under different configurations. Qu. 2 Explain the strategic role of Information system? Explain the role of GDSS? Ans. STRATEGIC ROLE FOR INFORMATION SYSTEM : The major roles of information system are as follows :

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(a) Support Business Processes : As a consumer, you have to deal with the information system that supports the business processes and operations at many retail shops where you shop. (b) Support Decision Making : Information system also helps store managers and other business professional to make better decision and attempt to gain competitive advantage. (c) Support Competitive Advantage : Gaining a strategic advantage over competitors requires innovate use of information technology GDSS: A Group decision support system that provides support in decision making by a group of people. GDSS are computer based information system that facilitates the free flow and exchange of ideas and information among the group members. Decisions are made with a higher degree of consensus and agreement resulting in a dramatically higher like hood of implementation. Group consists of less than 20 people who arrive at decision through communication. The communication serve to share information and implement the decision making process. The decision is taken by vote but is more often by negotiation or preference ranking. Types of GDSS: Three types of computer based supports are available:- (a) Decision Network : This type helps the participants to communicate each other through network or through a central database. Application software may use commonly shared models to provide support. The commonest implementation is using local area network and microcomputers. The technology filters out many group dynamics of a participative meeting. (b) Decision Room : Participants are located at one place i.e. the decision room. The purpose of this is to enhance participant’s interactions and decision making by computerized within a fixed period of time using a facilitator. (c) Teleconferencing :Groups are composed of members or sub groups that are geographically dispersed, teleconferencing provides interactive connection between two or more decision rooms. This interaction will involve transmission of compturised and audio visual information. Decision network can be viewed as the use of local area network, for decision making involving groups the decision room is entirely new development. The decision room should consist of a table with network workstations for the purpose. Breakout rooms, used for similar discussions, are also equipped with similar network machines. A combination of overhead projector, flipchart, photocopier and other presentation devices are provided as well. Following software are used :- (a) Brainstorming : The software may be used at any stage of processing but is valuable particularly at early stages when member of the group need to think and converse on the issue. (b) voting : It is frequently important to obtain swift view on the acceptability of proposals from a group perspective before proceedings. Voting (c) Policy Formation : Software can aid policy formation by allowing decision makers to identify connections and relations between issue and communicate to all present for comments. Qu. 3 Explain the following: (i) Information SDLC (ii) Marketing IS Ans: Information SDLC: To understand system development, we need to recognize that, a candidate system has a life cycle, just like a living system or a new product. System analysis and design are keyed to the system life cycle. Stages 1. Recognition of Need : One must know, what problem is before it can be solved. The basis for a candidate system is recognition of need for improving an information system or a procedure. For example, a supervisor may want to investigate the system flow in purchasing or a bank president has been getting the complaints about long lines in the drive-in ATM counters. 2. Feasibility Selection : Depending on the results of the initial investigation, the survey is expended to a more detailed feasibility study. A feasibility study is a test of system proposal according to its workability, impact on the organisation, ability to meet user’s need and effective use of resources. It focuses on the major questions:

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• What are the users’s demonstrated needs and how does a candidate system meet them?

• What resources are available for a given candidate system? • What are the likely impacts of candidate system on organisation? How well does it fit

within the organization’s MIS plan? The objective of the feasibility study is not to solve the problem but acquire a range of scope. During the study the problem definition is crystallized and aspects of the problem to be included in the system are determined. Consequently, cost and benefits are estimated with greater accuracy at this stage. 3. Analysis : Analysis is a detailed study of the various operations performed by a system and their relationship within and outside the system. A key question is : what must be done to solve the problem? One aspect of analysis is defining the boundaries of the system and determining whether or not a candidate system should consider other related system. During analysis, data are collected on the available files, decision points and transactions handled by the present system. Tools are used and logical model of the system is developed. 4. System Design: The most creative and challenging phase of the system life cycle is system design. The term design, describes a final system and process by which it is developed. It refers to the technical specifications that will be applied in implementing the candidate system. It also includes the construction of programmes and programme testing. The key question here is: how should the problem solved? The major steps in design are :

• The first step is to determine, how the output is to be produced and in which format. Sample of output are also presented.

• Input data and transfer files have to be designed to meet the requirements of the proposed output.

• The operational phases are handled through programmes constructions and testing including a list of programmes needed to meet the system’s objectives and complete documentation.

• Details related to justification of the system and an estimate of the impacts of the system on the user and organisation.

The final report prior to implementation phase includes procedural flowcharts, record layout, report layout and plan for implementing the candidate system. Information on personnel, money, hardware, facility and their estimated cost must also be available. At this point projected cost must be close to actual cost of implementation. Testing : System testing requires a test plan that consists of several key activities and steps for programs, strings, system, and user acceptance testing. The system performance criteria deals with turnaround time, backup, file protection and the human factor. 5. Implementation : The implementation phase is less creative than system design. It is primarily concerned with user training, site preparation and file conversion. When the candidate system is linked to the terminal or remote site, the telecommunication network and test of network along with the system are also included under implementation. During the final testing, user acceptance is tested, followed by user training. Depending on nature of the system, extensive user training may be required. Conversion usually takes place at about the same time, when the user is being trained or later. 6. Post Implementation : In the extreme, the programmer is viewed as someone, who ought to be isolated from other aspects of system development. Programming is itself a design work, however, the initial parameters of the candidate system should be modified, as a result of the programming efforts. Programming provides a reality test for the assumption made by the analyst. It is therefore, a mistake to exclude programmers from the initial system design. Following steps are observed: (i) Evaluation : During system testing, the system is used experimentally to ensure that the software does not fail. In other words, we can say that, it will run according to its specification and in the way user expect. Special test data inputs for processing and the result examined. A limited number of users may be allowed to use the system, so that, analyst can see, whether to use it in unforeseen ways. It is desirable to discover any surprise before the organisation

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implements the system and depends on it. Evaluation of the system is performed to identify its strength and weaknesses. The actual evaluation can occur along any one of the following dimensions:

o Operational Evaluation: assessment of the manner in which the system functions. o Organisational Impact: Identification and measurement of benefits to the organisation in

such areas as financial concerns, operational efficiency and competitive impact. o User Manager Assessment: Evaluation of the attitudes of senior manager and user

within the organisation as well as end users. o Development Performance : Evaluation f the development process in accordance with

such yardsticks as overall development time and efforts, conformance to budget and standards and other project management criteria.

(ii) Maintenance : Maintenance is necessary to eliminate the errors in the working system during its working life and to tune the system to any variations in its working environment. Often small system deficiencies are found, as system is brought into operation and changes are made to remove them. System planner must always plan for resources availability to carry on these maintenance functions. (iii) Enhancements : User priorities, changes in organizational or environmental factors also call for system enhancement. Like any system, there is an ageing process in software that requires periodic maintenance of hardware and software. If the new information is inconsistence with design specifications, then changes have to be made. MARKETING INFORMATION SYSTEM A marketing information system can be defined as a computer based system that works in conjunction with other functional information system to support the firm’s management in solving problem that relate to marketing the firm product. It is a system that meets the information need of an organisation in sales, distribution, advertising, market analysis, market intelligence, product research, service management, customer profile and other marketing functions. Data Sources: The information used in marketing, decision arrived at from different data sources are from the following sources: Transaction Processing Data : These data shows the sales that results from specific mixes of four Ps. They provide feedback on the effectiveness of the past marketing strategies. They are also useful for apprising performance and controlling marketing expenditure. Marketing Research Data : Market researchers are responsible for collecting consumer related data that can be used to support marketing decision. Market Intelligence Data : It refers to information about the strategy of competition. The term ‘intelligence’ is a carry over from the military, which uses the term to describe data gathered about enemy activities. Marketing intelligence information are collected in an unstructured or semi-structured manner through word of mouth interaction or through observing statistics available in media and commercial database services. External Environment Data : In marketing, success is largely attributable to what will happen in the future external environment. Strategic Plan The strategic plan is a really starting point of all marketing decisions. It contains the type of products that the firm plans to supply to the consumer market place. Marketing information system should provide following information:

• The optimal way to capture data at the point-of-sale. • Information about smooth running of market operation and efficiency. • Goods and services that customer wants. • Information about desire of customer service. • The kind of services important to customers. • Interest and willingness of consumers in information technology. • Willingness of customer to pay for higher quality service. • Impact of higher quality of service to customers on firm’s profit. • How can customer be attracted and retained?

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Qu. 4 What is the management information system? What is the role of MIS in DSS? Ans. Management Information System : It is the system that support or shape the competitive position and strategic of a business. So a strategic information system can be any king of information system that uses information technology to help an organisation gain competitive advantages, reduce a competitive disadvantage and meet other strategic enterprises objectives. Types Information technology can be used to implement the five basic strategies. Many companies are using internet technology as foundation of for such strategies. (a) Cost Leadership Strategy : Becoming a low cost producer of a products and services in the industry, a firm can find ways to help its suppliers or customers to reduce their cost or to increase the cost of their competitors. (b) Differentiation Strategy: Developing ways to differentiate a firm’s products and services from its competitor’s or reduce the differentiation advantages of competitors. This may allow affirm to focus its product or services to give it an advantage in particular segments of a market. (c) Innovation Strategy : Finding new ways of doing business. This may involve the development unique products and services or entry into unique market or market niches. It may also involve making radical changes to the business processes for producing or distributing products and services that are so different from the way a business has been conducted that they alter the fundamental structure of an industry. (d) Growth Strategy : Significantly expanding a company’s capacity to produce goods and services into global market, diversifying into new products and services or integrating into related products and services. (e) Alliance Strategy : Establishing new business linkage and alliances with customers, suppliers, competitors and other companies. The linkage may include mergers, acquisitions, joint ventures, forming of virtual companies or other marketing, manufacturing or distribution agreements between a business and its trading partners. ROLE OF INFORMATION SYSTEM IN DSS Business managers invest in information technology to direct support firm’s competitive strategies. Strategic information system is used to implement each of these five basic strategies for competitive advantage. There is major use of internet technology for electronic business and commerce applications. The major roles of information system are as follows: (a) Support Business Processes : As a consumer, you have to deal with the information system that supports the business processes and operations at many retail shops where you shop. (b) Support Decision Making : Information system also helps store managers and other business professional to make better decision and attempt to gain competitive advantage. (c) Support Competitive Advantage : Gaining a strategic advantage over competitors requires innovate use of information technology. Types Of Information System There are two types of information system: 1. Operation Support System : Under operation support system: (a) Transaction Processing System: process data resulting from business transactions, updates operational database and produce business documents. (b) Processing control system: Monitor and control industrial process. (c) Enterprise Collaboration System: Support team, work group, and enterprises communication and collaboration. 2. Management Support System: Under management support system: (a) Management Information System: Provide information in the form of pre-specified reports and displays to support business decision making. (b) Decision Support System: Provide interactive adhoc support for the decision making process of managers and other business professionals. (c) Executive Information System: Provide critical information fro many sources tailored to the information needs to executives

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Qu. 5 Describe the different information Systems with their contribution in an organisation? Ans. There are many information systems used in modern business. Some of them are explained below: MARKETING INFORMATION SYSTEM A marketing information system can be defined as a computer based system that works in conjunction with other functional information system to support the firm’s management in solving problem that relate to marketing the firm product. It is a system that meets the information need of an organisation in sales, distribution, advertising, market analysis, market intelligence, product research, service management, customer profile and other marketing functions. Data Sources: The information used in marketing, decision arrived at from different data sources are from the following sources: Transaction Processing Data : These data shows the sales that results from specific mixes of four Ps. They provide feedback on the effectiveness of the past marketing strategies. They are also useful for apprising performance and controlling marketing expenditure. Marketing Research Data : Market researchers are responsible for collecting consumer related data that can be used to support marketing decision. Market Intelligence Data : It refers to information about the strategy of competition. The term ‘intelligence’ is a carry over from the military, which uses the term to describe data gathered about enemy activities. Marketing intelligence information is collected in an unstructured or semi-structured manner through word of mouth interaction or through observing statistics available in media and commercial database services. External Environment Data : In marketing, success is largely attributable to what will happen in the future external environment. Strategic Plan The strategic plan is a really starting point of all marketing decisions. It contains the type of products that the firm plans to supply to the consumer market place. Marketing information system should provide following information:

• The optimal way to capture data at the point-of-sale. • Information about smooth running of market operation and efficiency. • Goods and services that customer wants. • Information about desire of customer service. • The kind of services important to customers. • Interest and willingness of consumers in information technology. • Willingness of customer to pay for higher quality service. • Impact of higher quality of service to customers on firm’s profit. • How can customer be attracted and retained?

MANUFACTURING INFORMATION SYSTEM Manufacturing information system is a system that supports the manufacturing functions of purchasing, receiving, quality control, inventory management, material requirements planning, capacity planning, production scheduling and plant design. It applies to both manufacturing and service environments. The term manufacturing should be considered in terms of delivering both goods and services. Components of MIS Production : It is the process of making new products from raw materials. The production process consists of many interrelated activities such as job shop and job process. Production System : It is, a subset of manufacturing information system, directly associated with the production of goods and services. It specifically addresses information needs related to raw

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materials, equipment, manpower and other issues directly related to production of goods and services. Product Design : It is the starting point of manufacturing process. It is the step in which the design and technical specifications for the product are finalised. Increasingly product design and engineering are becoming more compturised through approaches such as computer-aided design, computer aided engineering and robotics. After a product is designed, the facility to manufacture must be planned. Manufacturing Process : All manufacturing processing are concerned with information processing, storage, collection and distribution are related in a way that optimizes performance of the entire enterprises. Manufacturing refers to manufacturing environments that redynamic and flexible enough to produce customized goods and services in varying quantities and switch the manufacturing process from one product to another. Characteristic : Manufacturing has following characteristic :

• The ability to thrive on constant change. • Recognition by the organisation that people are its main assets. • Incorporation of the virtual company idea through the use of telecommunication. • A focus on creating products and services, which ensures that the final product is

standard quality. Its function is concerned with detecting existing quality deficiencies, as well as with preventing finer product quality problems.

Statistical Process Control : One of the quality control techniques that has helped in manufacturing operations is known as statistical process control. The objective of SPC is to closely monitor production units at various stages of the production process, identifying potential problems before they result in defects and adjusting the production process accordingly through observations. Sources Information needed for manufacturing decisions step from a variety of data sources as follows: (a) Production Data : By using terminal around the production floor, data on production process can be quickly gathered and processed. These data are used for billing and in almost every aspects of production control. (b) Inventory Data : It includes inventory of raw materials, goods-in-process and finished goods. Accurate raw material data are especially important in a manufacturing situation because running out of certain items at critical times can shut down production lines, leaving workers idle. (c) Vendor data : It shows sources and prices for raw materials. Often, vendors data are maintained by the purchasing department, although sometimes the manufacturing area will personally buy certain items. (d) Personnel data : Personnel data shows various statistics on current manufacturing personnel often, in the course of production people switch assignments, so personnel skills must be received to fit the right person for the right job. (e) Union Data : Many types of labour union exist in industries that have strict regulation regarding such items as pay scale, hiring and firing, promotion and working conditions. (f) Labour Data : Raw material and people are at the core of manufacturing a product. While vendors are the source of raw materials, labour market is source of people. Data must be kept regarding where new personnel may be obtained as labour shortage occurs in the firm. (g) External Environment Data : To manufacturing managers, the most pressing information need in the area of external environment data is the outlook of raw materials price and labour availability. (h) Engineering Specification : These data indicates whether something can be built and how. It contains such facts as size of screws, whether a certain drill bit is suitable for wood metal, or how to build a sub assembly of a certain type and so on. (j) Internal Marketing Data : Marketing ends where manufacturing begins, so marketing output is manufacturing input. Marketing specifies the number of goods that must be produced in each time period in order to meet consumer demand. Marketing data are also useful to production personnel as part of the engineering design process.

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ACCOUNTING INFORMATION SYSTEM An accounting information system is the system of records a business keeps maintaining its accounting system. This includes the purchase, sales, and other financial process of business. The purpose of an AIS is to accumulate data provide decision makers (investors, creditors, managers) with information to make decision. While this was previously a paper based process, most modern businesses now use accounting software. Types There are three types of accounting information systems : 1. Financial Accounting System : This system provides financial statements to investors, governmental authorities and other interested parties in accordance with their reporting formats. 2. Cost Accounting System : It provides reports to managers for cost planning and cost control of operations. 3. Management Accounting System : It provides reports to managers both for strategic and tactical decisions and on profitability of the firm. Type of Accounting Books The major types of accounting books used in accounting information system are as under : (a) Voucher : A transaction is recorded by debiting and crediting the two affected accounts, called a voucher. (b) Journal : It is an account book in which all the transactions are recorded in chronological order. It is maintained only in manual system by entering information from vouchers and is not required in computerized system. (c) General Ledger : All the accounts are recorded and maintained individually in a book called general ledger. In manual system of accounting, the ledger is prepared by entering information from Journal by a process called posting. (d) Cash Book : Cash book is a special type of ledger in which all cash transactions are recorded and maintained. (e) Bank Book : It is another type of ledger in which only bank transactions are recorded and maintained. (f) Sales Book : The credit sales of goods are recorded in a special book called sales book. (g) Purchase Book : The purchase of goods on credit basis are recorded in another special book called purchase book. (h) Debitor’s Ledger: The transaction of all debitors is recorded maintained in debitor’s ledger. (j) Creditor’s Ledger: The transactions of all creditors are recorded and maintained in this book. Major Financial Statements After preparation of all above accounts, the final statements of accounts are generated periodically monthly or yearly. The major financial statements are as follows: (i) Trial Balance : It is a financial statement prepared monthly, quarterly or annually to find out the balance of each accounts. In a trial balance, all debitors are shown on one side, while creditors are shown on other side. The total of debit balance must match the total of the credit balance. (ii) Trading Accounts : It is a financial statement prepared yearly to find out the gross profit and loss of the firm (iii) Profit and Loss Accounts: After preparation of trading account, a financial statement called Profit and Loss account is generated to find out net profit or loss of the firm. (iv) Balance Sheet: The balance sheet is the most important financial statement of the company that reflects its position of assets and liabilities on a particular date. (v) Accounts Receivable Statement: This statements lists the name of debitors and the amounts to be received by the company. (vi) Account Payable Statement: This statement lists the name of the creditors and the amount to be paid by the company. FINANCIAL INFORMATION SYSTEM Financial Accounting System provides financial statements to investors, governmental authorities and other interested parties in accordance with their reporting formats. Role And Advantage of Computers in Financial Information System

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Accounting is mainly concerned with the collecting, recording and evaluation of financial data and then communicates this information to the management and other concerned. Generally accounting information system is of three types: 1. Financial Accounting System: This system provides financial statements to investors, governmental authorities and other interested parties in accordance with their reporting formats. 2. Cost Accounting System : It provides reports to managers for cost planning and cost control of operations. 3. Management Accounting System : It provides reports to managers both for strategic and tactical decisions and on profitability of the firm. Many types of account books and financial statements can be generated by a financial accounting system. In manual system of accounting, maintaining of account books in a prescribed manner is called book-keeping, while preparing of financial statements based on the accounts book is called financial accounting. In computerized system financial accounting generate both account books and financial statements. 4. Generating Profit & Loss account and balance sheet. 5. Generating updated financial data for other systems. Various inputs are:

• Cash vouchers • Bank vouchers sales vouchers or bills to customer • Purchase vouchers or bills from vendors • Journal vouchers

Various outputs are: • Accounts Books • Trial Balance • Trading Account • P & l accounts • Balance Sheet • Account Receivable Statements • Accounts Payable Statements

INTERNATIONAL BUSINESS ENVIRONMENT AND MANAGEMENT

Qu. 1 What is the economic environment? Explain different kind of economic systems and their influence on international business. Ans. Economic Environment: Apart from the political and legal environment, the economic environment also influences international business decision. This is because the decision to trade or locate manufacturing operations varies from one host country to other, depending upon the form of economic system existing there and various economic parameters prevailing there, for example, level of income and inflation, health of industrial, financial and external sector and many others. Types : There are three types of economic system : (a) Centrally Planned Economy: It is an economy where production and distribution system is owned by the Government. The Govt designs the investments and coordinates the activities of different economic sectors. Ownership of the means of production and the whole process of production lies in the hands of Govt. the former USSR and other Eastern countries were examples of these types of economic system. In international trade, normally the state trading corporation participates that highly influences the consumers and business. (b) Market Based Economy: It is an economy where the decision to produce and distribute goods is taken by individual firm based on the forces of demand and supply. They take such decision for the purpose of maximising profit or wealth. Consumers are free to decide what they want to buy. The United States of America and Western European countries are example of market based economy. In market based economy, trade is handled by individual firms that affect the international business. (c) Mixed Economy: It is a compromise between CPE and market based economy where private and public sectors exist side by side. There is no country that represents any of the two

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systems in its purest form. Indian economy system represents mixed economic system. Economic activities that are fraught with social considerations are owned and regulated by the Govt. The others are owned and performed by private sectors. Qu. 2 How does Government influence trade and investment in an economy? Ans. There have been a number of theoretical explanations on international trade and investment. TRADE THEORY : Following are the trade theories: Classical theory : there are two classical theories : (i) Theory of Absolute Cost Advantage: Adam Smith compounded this theory of international trade in 1976. He was of the opinion that productive efficiency differed among different countries because of diversity in natural and acquired resources possessed by them. The theory explains that a country having absolute cost advantage in the production of a product on the account of greater efficiency should specialize in its production and export. For example, suppose country ‘A’ produces 1 kg of rice with 10 units of labour or it produces 1 kg of wheat with 20 units of labour. Country ‘B’ produces the same amount of rice with 20 units of labour and same amount of wheat with 10 units of labour. Each of countries has 100 units of labour. Equal amount of labour is used for the production of two goods in the absence of trade between them. But when the trade is possible between two countries, ‘A’ will produce only rice and exchange a part of rice output with wheat from country ‘B’. Similarly country ‘B’ will do. The total output of both the countries will rise because of trade. (ii) Theory of Comparative Cost Advantage : This theory is compounded by David Ricardo. The theory explains that a country should specialize in the production and export of a commodity in which it possesses greatest relative advantage. For example, Bangladesh and India, each of the two has 100 units of labour. In Bangladesh, 10 units of labour are required to produce to produce either one kg of rice or one kg of wheat. On the contrary, in India, 5 units are required to produce one kg of wheat and 8 units are required to produce one kg of rice. From the viewpoint of absolute cost advantage, there will be no trade as India possesses absolute cost advantage in the production of both the commodities. But Ricardo is of the view that from the viewpoint of comparative cost advantage, there will be trade, because India possesses comparative cost advantage in the production of wheat. This is because the ratio of cost between Bangladesh and India is 2:1 in case of wheat, while it is 1.25: 1 in case of rice. Because of this comparative cost advantage, India will produce 20 kg of wheat with 100 units of labour and export apart of wheat to Bangladesh. On the other hand, Bangladesh will produce 10 kg of rice with 100 units of labour and export apart of rice to India. The total output of foodgrain in the two rises because of trade. Limitations : Despite of being simple, the classical theory of international business suffers of following limitations : (i) It takes into consideration only one factor of production that is labour. But in real world, there are other factors that play a decisive role in production. (ii) The theory assumes the existence of full employment, but in practical, full employment is not possible. (iii) Theory stress too much on specialization that is expected to improve efficiency. But it is not always the case in real life. (iv) Classical economist feel that resources are mobile domestically and immobile internationally. But neither of the two assumptions is correct Summary : The Classical theory holds good even today insofar as it suggest how a nation could achieve the consumption level beyond what it would in absence of trade. Factor Proportions Theory or Heckschar and Ohlin Model

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The theory was compounded by two Swedish economists, Eli Heckscher and Bertil Ohlin. The theory explains that a country should produce and export a commodity that primarily involves a factor of production abundantly available in the country. For example, country ‘A’ has large population and large labour resources. Thus it will be able to produce the goods at a lower cost using a labour intensive mode of production. Country ‘B’ has abundance of capital but is short of labour resources and will specialize in goods that involve a capital intensive mode of production. After the trade, both the countries will have two types of goods at the lest cost. Mr. Samuelson went a few steps ahead saying that in this way the prices of factors of production tend to equalize among different countries. Leontief found in his empirical study that the USA being the capital abundant economy, exported labour intensive goods. But he was of this view that such possibilities could not be ruled out because the USA was able to produce labour intensive goods in a capital intensive fashion. Neo-Factor proportion Theory Extending Leontief’s view, some of the economist emphasis on the point that it is not only the abundance of a particular factor, but also the quality of that factor of production that influences the pattern of international trade. The quality is so important in their view that they analysis the trade theory in a three-factor framework : (a) Human capital : It is the result of better education and training. Human capital should be treated as a factor input like physical labour and capital. A country with human capital maintains an edge over other countries with regards to the export of commodities produces with the help of improved human capital. (b) Skill Intensity : The skill intensity hypothesis is similar to human capital hypothesis as both of them explain the capital embodied in human beings. It is only empirical specification that differs. (c) Economies of Scale : It explains that with rising output, unit cost decreases. The producers achieve internal economies of scales. A country with large production possesses an edge over other countries with regards to export. However, a small country can reap such advantages if it produces exportable in large quantities. National Competitive Advantage The theory is compounded by Porter. This theory explains that countries seek to improve their national competitiveness by developing successful industries. The success of targeted industries depends upon a host of factors that are termed the diamond of national advantage. The factors are: (a) Factor Conditions : It show how far the factors of production in a country can be utilised successfully in a particular industry. This concept goes beyond the factor proportion theory and explains that an availability of the factor of production per se is not important; rather their contribution to the creation and upgradation of products is crucial for competitive advantages. (b) Demand Condition: The demand for the product must be present in the domestic market from the very beginning of production. Porter is of view that it is not merely size of the market that is important, but it is intensity and sophistication of demand that is significant for competitive advantage. (c) Related and Supported Industries : The firm operating along with its competitors as well as its complementary firms gathers benefit through a close working relationship in form of competition or backward and forward linkage. (d) Firm Strategy, Structure and Rivalry : The firm’s own strategy helps in augmenting export. There is no fixed rule regarding the adoption of a particular strategy. It depends on the numbers of factors present in the home country or the importing country. Limitations : There are various criticism put forth against Porter’s theory :

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(a) There are cases when absence of any factors embodied in Porters diamond does not affect the competitive advantage. For example, when a firm is exporting its entire output, the intensity of demand at home does not matter. (b) If the domestic supplier of input is not available, the backward linkage will be meaningless. (c) Porter’s theory is based on empirical findings covering 10 countries and four industries. A majority of countries in the sample have different economic background and don’t necessarily support the findings. (d) Availability of natural resources, according to Porter are not the only conditions for attaining competitive advantage. And there must be other factors too for it. But in 1985, some Canadian industries emerged on the global map only on the basis of natural resources. (e) Porter feels that sizable domestic demand must be present for attaining competitive advantage. But there are industries that have flourished because of demand from foreign sales. Summary: Nevertheless these limitations do not undermine the significance of Porter’s theory. INVESTMENT THEORY There are a number of investment theories. Except for MacDougall hypothesis, investment theories are primarily based on imperfect market conditions. A few of them are based on imperfect capital market. MacDougall-Kemp Hypothesis: Assuming a two-country model- one being the investing and other being the host country and the price of capital being equal, the investment flows from abundant economy to a capital scare economy until the marginal productivity of capital in both the countries are equal or till the returns from investment is greater than the loss of output in home country. Industrial Organisation Theory : The theory is based on oligopolistic or imperfect market in which the investing firm operates. Market imperfection arises in many cases, such as product differentiation, market skills, proprietary technology, managerial skills, better access to capital, economies of scales, government imposed market distortion and so on. Such advantages confer MNCs an edge over their competitors in foreign locations and thus helps in compensate the additional cost of operating in an unfamiliar environment. It refers to technological and similar other advantages possessed by a firm that enable it to produce new and differentiated products. Location Specific Theory : This theory is compounded by hood and Young. It refers to advantages like cheap labour, abundantly available raw material, and so on for the production of a commodity to be established in a particular location or country. Since real wage cost varies among countries, firms with low cost technology move to low wage country. Product Cycle Theory: Raymond Vernon feels that most product follow a life cycle that is divided into three stages : (a) Innovation Stage: It is a stage in the product cycle when the product is in demand because of its new and improved quality, irrespective of its price. The product is manufactured in the home country primarily to meet the domestic demand but a portion of the output is exported to the other developed countries. (b) Maturing Product Stage : At this stage, the demand for the new product grows and it turns price elastic. Rival firms in the host country begin to supply similar product at a lower price owing to lower distribution cost, whereas the product of innovator is costlier as it involves transportation cost and tariff that is imposed by the importing government.

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Thus to compete with the rival firms, innovator decides to set up a production unit in host country itself which would lead to internationalization of product. (c) Standardised Product ; It is the stage in the product cycle when technology does not remain the exclusive possession of innovator and competition turns stiffer. At this stage price competitiveness becomes even more important and the innovator shifts the production to a low cost location, preferably a developing country where labour is cheap. (d) Denaturing Stage : It is the stage when development in technology or in consumer’s preference breaks down product standradisation. Cheap labour does not matter at this stage as sophisticated model involves a capital intensive mode of production. Internalization Approach : Buckley and Casson too assumes market imperfection, but imperfection in their view, is related to transaction cost that is involved in intra-firm transfer of intermediate product such as knowledge or expertise. It is internalization benefit is cost free intra-firm flow of technology development by the parent unit. Currency Based Approaches: It is compounded by Aliber. Such theories are normally based on imperfect foreign exchange and capital market. The theory postulates that internationalization of firms can best be explained in terms of the relative strength of different currencies. Firms from strong currency country moves to a weak currency country. In a weak currency country, income stream is fraught with greater exchange risk. As a result the income of strong currency country firm is capitalized at a higher rate. Politico-Economic Theories: These theories concentrate on political risk. Political stability in the host country leads to foreign investments. Similarly, political instability in the home country encourages investment in foreign countries. Modified theories for Third World Firms : Developing country MNCs posses firm specific advantages in form of modified technology. They move abroad also to reap advantages of cheap labour and abundance of natural resources. These firms have long been importing technology from industrialized countries. But since imported technology is mainly designed to cope with a large market, firm export a part of their output after meeting their domestic demand. Motivation of Merger & Acquision: There are following motives behind M & A : (a) M & A provides synergistic advantages. For example, when the fixed costs in firm A does not cross the relevant range even after it acquires firm B, the combination will lead to saving of fixed costs that firm B was previously incurring. (b) It enables the overnight growth of firm. At the same time very risk of competition reduces after merger. (c) It reduces financial risks through greater amount of diversitification. More particularly in case of conglomerates, assets of completely differently risk classes are acquired and there are possibilities of negative correlation between the rates of return. (d) It leads to diversification, which raises the debt capacity of the firm. It helps the cost of capital to move downward and raises the value of corporate wealth. (e) The tax savings sometimes leads firms to combine. In international business, M & A are very common now a day because of above said reasons. However, international M & A sometimes becomes an essential step when the domestic market is saturated and firm is desirous of further expansion for reaping gains from external economies. Qu. 3 Explain the following: (a) Terrifs

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(b) Non-terrif Barriers Ans. (a) Tariff Barriers : Tariff in international trade refers to the duties or taxes imposed on the import traded goods when they cross the national borders. After Second World War, there has been a reduction in the average level of Tariffs in the advanced countries. Tariff rates are generally high in developing countries. With the recent economic liberalization across the world, many developing countries have reduced the tariff as a part of their trade liberalization. In most economies and organisation like WTO prefers tariff to non-tariff barriers because tariff are transparent and less regressive than non-tariff barriers. The developed countries tariff continues to be very strenuously loaded against the developing ones. Characteristic:

• Tariff applied on to consumer goods are often higher than on the cheaper goods of luxury version.

• There is also tariff escalation, when tariff increases with degree of processing involved in the product.

(b) Non-Tariff Barriers : Non-tariff barriers are new protectionism measures that have grown considerably, particularly since around the beginning of 1980s. The export growth of many developing countries has been seriously affected by non-tariff barriers. Categories of NTBs : (i) Those which are generally adopted by developing countries to prevent foreign outflow or result from their chosen strategy of economic development. These are mostly traditional NTBs like import licensing, import quotas, foreign exchange regulations and canalization imports. (ii) Those which are mostly used by developed countries to protect domestic industries which have lost international competitiveness or which are politically sensitive for government. For example Import Prohibition, Quantitative Restrictions, Variable Levi’s, Multi-Fiber Arrangements, Voluntary Export Restraint and Non-Automatic Licensing. Example of NTBs excluded from the group includes technical barriers (including health and safety restriction and standards), Minimum Pricing Regulations and Use of Price Investigation and Pricing Surveillance.

BUSINESS POLICY AND STRATEGIC ANALYSIS

Qu. Why do firms have objectives? Elaborate how missions and objectives are formulated? Ans. Objectives : The objectives of a business firm are as under: (a) Business Concepts: The learners of business policies have to understand the various concepts involved. Many of these concepts, like strategy, policies, plans and programmes are encountered in the functional are courses too. It is imperative to understand these concepts especially in the context of business policy. (b) Environmental Knowledge: A knowledge of external and internal environment and how it affects functioning of business is vital. Through the tools of analysis and diagnosis a Lerner can understand the environment in which a firm operates. (c) Implementation of Strategy: It is a complex issue and is invariably the most difficult part of strategic management. Through the knowledge gained from business policy, the Lerner would able to visualize how the implementation of strategic management can take place. (d) Generalised Approach: The problem in real business life is unique and so are the solution is an enlightened experience. The knowledge component of such experience stress the general approach to adapt in problem solving and decision making.

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(e) Information: The information about environment helps in determination of the mission, objectives and strategies of a firm. (f) Research: To learn about the research taking place in the field of business policy is also an important knowledge objective. Mission and Objectives Formulation: The mission and objectives are formulated by the corporate level strategists. But these executives do not make choices in vacuum. Their choices are affected by several factors such as; (a) External Environment and Power Relationship: The realities, and past strategy and development of the enterprise. The stockholder with whom the organisation has an exchange relationship will present demand or claims. Suppose a manager want to choose sales maximization as an objective. He may have to modify these objectives because of governmental regulations regarding excess profit, consumer labeling and so on. Trade union may require higher wages than market, which leads to higher costs. Competitors may sell their products at low price and spend excessive amount on advertisements. Suppliers may become monopolized and charge outrageous prices. If the organisation is more dependent on suppliers than any other stakeholder the operational objectives may be limited by the availability and cost of supplies. (b) Enterprise Resources and Internal Power Relationship: The second factor affecting the formulation of mission and objectives is the realities of the enterprise resources and internal power relationship. Larger and more profitable firms have more resources with which to respond to forces in environment than do smaller or poorer firms. Mission and objectives are also affected by the power relationship among strategies either as individual or representations of units within the organisation. Thus if there is a difference of opinion on which objectives to seek or the trade offs among them power relationship may help settle the difference. (c) Goal of the Top Executives: The value system of top executives affects the formulation of mission and objectives. Enterprises with strong value system or ideologies will attract and regain managers whose values are similar. These values are essentially a set of attitudes about what is good or bad, desirable or undesirable. Qu. 2 Explain the various levels at which strategy is formulated? Describe the role of board of directors in strategic management process operating at all levels? Ans. The definition of strategy varied in nature, depth and coverage, offers us a glimpses of the complexity involved in understanding this daunting yet interesting and challenging concept. The different levels at which strategy can be formulated are as under: (a) Corporate Level strategy: Strategy at corporate level is designated as corporate strategy. It is the top management plan to direct and run the enterprises as a whole. Corporate level strategy represents the pattern of interest in different business, divisions, product-lines, customer groups and technology etc. Corporate strategy emphasizes upon the fact that how one should manage the scope, mix and emphasis of various activities and how the resources should be allocated over the different priorities of the corporation. (b) Business Level Strategy: For many companies that are dealing in number of product mix, dealing with different types of buyers and types of markets, for them a single strategy is not only inadequate but also inappropriate. The need is for multiple strategies at different levels. In order to segregate different units or segments each performing a separate function, a separate strategy is required. Qu. 3. What do you understand by SWOT analysis? How this technique is used in the formulation of corporate strategy? Ans. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strength (S) or weakness (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis. The SWOT analysis provides information that is helpful in matching the firm’s

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resources and capabilities to the competitive environmental in strategy formulation and selection. The following shows how SWOT analysis fits into environmental scan: Strengths (S): A firm’s strength are its resources and capabilities that can be used as a basis for developing its competitive advantage profile.

• Patents • Strong brand names • Good reputation among customer • Cost advantages from proprietary know how • Exclusive access to high grade natural resources • Favourable access to distribution network

Weaknesses (W): The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:

• Lack of patent protection • A weak brand name • Poor reputation among customers • High cost structure • Lack of access to best natural resources • Lack of access to key distribution channels in some cases, a weakness may be the flip

side of the strength. Take the case in which a firm has a large amount of manufacturing capacity. While this capacity may be considered a strength that competitors do not share, it may be also considered as a weakness if the large investment in manufacturing capacity prevents the firm from reacting quickly to change in the strategic environment.

Opportunities(O): The external environmental analysis may revel certain new opportunities for profit and growth. Some examples of such opportunities includes:

• An unfulfilled customer need • Arrival of new technologies • Loosening of regulations • Removal of international trade barriers

Threats (T): Changes in external environment also may present threats to the firm. Some examples of such threats are:

• Shift in consumer tastes away from firm’s products • Emergence of substitutes products • New regulations • Increased trade barriers

The basic objectives of SWOT analysis is to provide a frame work to reflect on the firm’s ability to overcome barriers and avail of opportunities emerging in the environment, indeed the dimension of internal capabilities have relevance in so far they relate to the environmental conditions. Hence the analysis of comparative strengths and weaknesses require linking competencies with characteristic of external environment. An organisation that had pioneered computer education and training in India in the early 80s, found its position threatened in the mid 90s by competitors. Analysis of changing environment and its own weakness led to the outlining of organization’s SWOT as follows: Strengths:

• Value for money programmes • Pool of trained faculty • Wide choice of courses offering • Nationals network of well-equipped training centuries

Weaknesses: • Not aggressive in selling • Course differentials not sharp • Counselors enthusiasm inadequate • Customer services not focused enough

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Opportunities: • Growing demand for computer education • Computer library becoming necessity • Growth of niche training needs • Needs for customisied training modules

Threats: • Rise in competitors • High rate of technological obsolescence • Commodities of training • Undercutting of fees

Matching strengths and weakness with opportunities and threats requires that a firm should direct its strength towards exploiting opportunities and blocking threats while minimizing exposure of its weaknesses at the same time. Thus strategies which are based on the matching of strengths and weaknesses may be regarded as exploitative or developmental strategy. If strengths are used to repair weaknesses, one may call it remedial strategy. SWOT analysis may provide the basis of a comprehensive approach to strategy. Uses of SWOT Analysis: It can be used formulation of corporate strategy in many ways: (a) To provide a logical framework to be used for systematic discussion of various issue bearing on the business situation alternatives strategies and finally the choice of strategy. Differences in managerial perceptions of threats and opportunities, weakness and strength lead to different assessment reflecting intra organisational power relations and differing factual perspectives. (b) Another uses of SWOT analysis is the structured approach where key external threats and opportunities may be systematically compared with internal strengths and weakness. Thus the firm internal and external situations can be matched so as to form distinct pattern and the strategy chosen on the basis of the situation reflected in pattern. (c) A business may have several opportunities but also face some serious threats in the environment. It may have likewise several weaknesses along with one or two major strengths. In such situations the SWOT analysis guides the strategist to visualize the overall position of firm and helps to identify the major purpose of the gram strategy being considered.

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