Formulation of the Research Problem and

Development of the research hypothesis

Learning Objectives
• Apply both deductive and inductive reasoning strategies to formulate
a research problem.
• Have a clear and precise understanding of what are the components
of a scientific and objective research model.
• Reduce the decisions needs into distinct and clearly spelt research
questions.
• Identify propositions and convert them into testable research
hypothesis depending on the nature of research.
 The Scientific Thought

• Apply both deductive and inductive reasoning strategies to formulate research

problem. The reasoning approach could be deductive or inductive or a
combination of both.
• Deductive thought: This kind of logic is a culmination, a conclusion or a
consequence of certain reasoned facts. The reason cited have to be real and not a
figment of the researchers judgement and second the deductions or conclusions
should be the outcome of the same reasons.
• For example if we summarize for Mr. Dubey problem that:
All well- executed projects have well integrated teams. (Reason 1)
The ABC project has many short falls. (Reason 2)
The ABC project team is not a very cohesive and integrated team (Inference)
Deductive thought can be defined as a logic which includes drawing
culmination/conclusion/inference from a given list of certain facts.
Inductive thought : In the case of the inductive thought there is no strong and
absolute cause and effect between the reasons stated and the inference drawn.
Inductive reasoning calls for generating the conclusion that is beyond the facts or
information stated.
In the same example of the ABC project, we might begin by asking a question, “ What
is the reason for the ABC project not being executed on time?” And a probable answer
could be that the project team is not making a coordinated effort. There could be
other inductive hypothesis as well, for example:
The vendors and suppliers are ineffective in maintaining and managing the raw
material and supplies.
Or
The workers union in the area is very strong and is on a go- slow call which prevents
the execution of work on time.
Inductive thought does not involve any absolute cause and effect
relationship between a set of reasons and inferences.
 Defining The Research Problem
• A research problem can be defined as a gap or uncertainty in the decision makers
existing body of knowledge which inhibits efficient decision makers existing body of
knowledge which inhibits efficient decision- making.
• Sometimes it may so happen that there might be multiple reasons for these gaps and
identifying one of these and pursuing its solution, might be the problem.
• As Kerlinger (1986) states, “ If one wants to solve a problem, one must generally
know what the problem is. It can be said that a large part of the problem lies is
knowing what the problem is. It can be said that a large part of knowing what one is
trying to do”.
Simple problems are those that are easy to comprehend and their components and
identified relationships are linear and easy to understand, e.g. The relation between
cigarette smoking and lung cancer. Complex problems on the other hand, talks about
interrelationships between antecedents and subsequently with the consequential
component.
So A gap or uncertainty which hampers the process of efficient decision making a
given body of knowledge is called a Research Problem.

1. Problem Identification Process is action oriented and requires a narrowing

down of a broad decision problem to the level of information oriented problem in
order to arrive at a meaningful conclusion.
The problem recognition process invariably starts with the decision maker and
some difficulty or decision dilemma that he/she might be facing . This is an action
oriented problem that addresses the question of what the decision maker should
do. Sometimes, this might be related to actual and immediate difficulties faced by
the manager(applied research) or gaps experienced in existing body of
knowledge(basic research).
2.Management Decision Problem : The entire process explained above begins with the
acknowledgement and identification of the difficulty encountered by the business
manager/researcher . If the manager is skilled enough and the nature of the problem
requires to be resolved by him or her alone, the problem identification process is
handled by him or her , else he or she outsources it to a researcher or a research
agency. This step requires the author to carry out a problem appraisal, which would
include a comprehensive audit of the origin and symptoms of the diagnosed business
problems.

For example: An organic farmer and trader in Uttarakhand , Nirmal farms wants to sell
his organic food products in the domestic Indian market. However, he is not aware if
this is a viable business opportunity and since he does not have expertise or time to
undertake any research to aid in the formulation of marketing strategy , he decides to
outsource the study.
3. Discussion with subject experts: The next step involves getting the problem in right
perspective through discussions with industry and subject experts. These individuals
are knowledgeable about the industry as well as the organization. They could be found
both within and outside the company. The information on the current and probable
scenario required is obtained with the assistance of a semi structured interview. Thus
researcher must have a predetermined set of questions related to the doubts
experienced in problem formulation.
 DECISION PROBLEM
What should be done to increase the
customer base of organic products in
the domestic market?
How to reduce the turnover rates in
the BPO sector?
How to improve the delivery process of
its hearing aids in India?
Should the company continue with its
existing security services vendor or look
at an alternative?
RESEARCH PROBLEM
What is the awareness and purchase
intention of health –conscious consumers to
organic products?
What is the impact of shift duties on work
exhaustion and turnover intentions of the
of the BPO employees?
How does widex/ Industry leader manage
its supply chain in India/ Asia?
What is the satisfaction level of the company
with the existing vendor ? Are there any
gaps? Can they be effectively handled by
the vendor?
Can the housing and real estate growth
be accelerated
Whom should ICICI choose as its next
Managing director- Mr. ABC or Mrs. XYZ?
What is the current investment in
real estate and housing? Can the
demand in the sector be forecasted
for the next six months?’
What has been the leadership
Initiatives and performance record
of ABC vs XYZ?
Can a leading aggressive private
sector bank accept a women as its
leader?
Review of existing literature: A literature review is a compilation of the information
obtained from published and unpublished sources of data in the specific area of
interest to the researcher. This may include journals, newspapers, magazines , reports,
government publications and also computerized data bases.
Once the data has been collected from different sources, the researcher must collate
all information together in a cogent and logical manner instead of just listing the
previous findings. The document must avoid plagiarism and ensure that the list of
earlier studies is presented in his own words.
To illustrate the significance of a literature review, given below is a small part of
literature review done on organic purchase.
Research indicates organic is better quality food. The pesticide residue in commercial food is almost
three times the amount found in organic food. Baker et al.(2002) found that on an average, conventional
food is more than five times likely to have chemical residue than organic samples, pesticides toxicity has
been found to have detrimental effects on infants, pregnant women and general public (National
research council, 1993; Ma et al , 2002; Guillete et al, 1998). Major factors that promote growth in
organic market are consumer awareness of health , environmental issues and food scandals ( Youssefi
and Willer,2002).
Organizational Analysis : An organizational analysis is based on data regarding the
origin and history of the firm including its size, assets, nature of business, location and
resources. It assists in arriving at the research problem. Another significant source for
deriving the research problem is the industry and organizational data. In case the
researcher / investigator is the manager himself/herself, the data might be easily
available.
Qualitative Survey Sometimes the expert interview, secondary data and organizational
information might not be enough to define the research problem . In such a case, an
exploratory qualitative survey might be required to get an insight into the behavioural
or perceptual aspects of the problem. These might be based on small samples and
might make use of focus group discussions or pilot surveys with the respondent
population to help uncover relevant and topical issues which might have significant
bearing on the population definition.
Management Research Problem Once the audit process of secondary review and
interviews and survey is over, the researcher is ready to focus and define the issues of
concern, that need to be investigated further, in the form of an unambiguous and
clearly –defined research investigated further, in the form of an unambiguous and
clearly defined research problem.

To address the problems of clarity and focus, we need to understand the components
of well defined problem these are:
1. The unit of Analysis
2. Research Variables
a. Dependent Variable
b. Independent Variable
c. Moderating Variables
d. Extraneous Variables
A Variable , in general, is a symbol to which we can assign numerals or values. It can be
dichotomous, discrete or indefinite.
The unit of Analysis is that particular source from which the required information is obtained.
It can be individual(s) department, organization or an industry.
A dependent Variable is measurable and quanfiable variable in nature. It is the most crucial
variable to be analysed in a given research study.
Moderating Variables (MVs) are the ones that have a strong contingent effect on the
relationship between the independent and dependent variable. They have the potential to
modify the direction and magnitude of the above stated association.
There might be instances when confusion might arise between a moderating variable and
independent variable. Consider the following situation-
Proposition 1: Turnover intention (DV) is an inverse function of organizational commitment
(IV), especially for workers who have a higher job satisfaction level(MV).
While another study might have the following proposition test.
Proposition 2: Turnover intention (DV) is an inverse function of job satisfaction.
Thus, the two propositions are studying the relation between the same three moderating
depends on the research interest of the decision marker.
Intervening Variable : An intervening variable (IVV) is a temporal occurrence which
follows the independent variable and precedes the dependent variable.
 Graphical representation of moderating variable . Proposition 2

Job Satisfaction
(Independent Variable- I.V.) a
Organizational Commitment b Turnover Intention
(Moderator Variable-M.V.) (Dependent Variable)

Job Satisfaction X c
Organizational Commitment

Here a represents the effect of independent variable (Job Satisfaction); b represents the effect of the second
variable moderator variable (Organizational Commitment) and C represents the moderating effect, which is
combined effect of the moderating variable and independent on the dependent variable. Thus the effect of C
has to be large enough and significant enough (Statistically) to prove the moderation hypothesis.
 Graphical representation of mediating variable

a
Flexi-time Work Schedule Productivity (Outcome-D.V.)
(Independent Variable –I.V.)

c b

Job Satisfaction
(Mediating Variable)

In research methodology the intervening variable is also known as mediating variable, as it mediates the
strength and direction of the relationship between the independent and dependent variable. For example
in the above case , the direct effect of the predictor or the independent variable is measured by a; and the
mediating impact of the mediating variable is represented by b. But the independent variable acts on the
mediating variable as represented by C.
 THEORETICAL FOUNDATION AND MODEL BUILDING

A theoretical framework is a schema or network of the probable relationship between

the identified variables. It is a powerful driving force behind the research process.
A theoretical framework can be explained verbally as a verbal model, in a graphical
form as a graphical model and can be reduced to mathematical equations and
represented as a mathematical model.
For example- The proposed model to predict turnover intention is specified as:
TI = f (WE,OC,A,MS,TWE)
TI= Turnover intention A= Age
WE= Work exhaustion MS= Marital Status
OC= Organizational commitment TWE= Total Work Experience.
The theoretical construct of work exhaustion is influenced by perceived
workload (PWL), Fairness of Reward (FOR), Job Autonomy (JA) and Work
Family Conflict(WFC). Mathematically it can be expressed as –
WE= f ( PWL, FOR, JA,WFC)
 Graphically model can be explained-

Perceived Work family Fairness of Reward

Job Autonomy
Workload conflict

Work Organizational Total Work Marital

Exhaustion commitment Experience Status
Age

Turnover
Intentions
Statement of Research Objectives

Research objectives are to be formulated according to the basic, thrust areas of the research
which are crucial to the study being conducted.
The research question(s) that were formulated have to be broken into pieces as task or
objectives.
The researcher has to numerically list the thrust areas of research. For this some active verbs
are used such as “ to find out”, “to determine”, “to establish” and “to measure” so as to spell
out the objectives of the study.
In the case of Organic food research, the objectives and sub objectives of the study were-
1. To study the existing organic market:
 To Categorize the organic products available in Delhi into grain, snacks, herbs, pickles,
squashes fruits and vegetables.
 To estimate the demand pattern of various products for each of the above categories.
 To understand the marketing strategies adopted by different players for promoting and
propagating organic products.
2. Consumer Diagnostic Research: This would entail
 To study the existing consumer profile, i.e.. Perception and attitudes towards the
organic products and purchase and consumption pattern.
 To study the potential customers in terms of consumer segments, level of
awareness, perception and attitude towards health and organic products.
3. Opinion Survey: To access the awareness and opinions of experts such as doctors,
dieticians and chefs in order to understand organic consumption and propagation.
4. Retail Market: This would involve:
 To find the gap between demand and supply of existing retailers;
 To forecast demand estimates by considering the existing as well as potential
retailers.
Formulation of The Research Hypothesis
 Hypothesis means mere assumptions or suppositions which are to be proved or
disproved.

 Hypothesis is a formal question that is intended to resolve.

Purpose of Hypothesis
• Guides/gives direction to the study/investigation
• Suggests which form of research design is likely to be the most appropriate
• Provides a framework for organizing the conclusions of the findings
• Limits the research to specific area
• Offers explanations for the relationships between those variables that can be
empirically tested
• Structures the next phase in the investigation and therefore furnishes continuity to
the examination of the problem
Characteristics of Hypothesis
• Related to problem
• Clear & Precise
• Amenable with time
• Testable
• States relation
• Specific & Simple
A hypothesis
• must make a prediction
• must identify at least two variables
• should have an elucidating power
• should strive to furnish an acceptable explanation or accounting of a fact
• must be formulated in simple, understandable terms
• should correspond with existing knowledge
• In general, a hypothesis needs to be unambiguous, specific, quantifiable,
testable and generalize-able.
 Categorizing Hypotheses
Can be categorized in different ways

1. Based on their formulation

• Null Hypotheses and Alternate Hypotheses

2. Based on direction
• Directional and Non-directional Hypothesis

3. Based on their derivation

• Inductive and Deductive Hypotheses
Null Hypothesis
• Null hypothesis always predicts that there is no relationship between
the variables being studied.
• The researcher wishes to disapprove this hypothesis.
• It is denoted by H0
• For example:
• “There is no relationship between learning and intelligence.”
• Alternate Hypothesis
• The alternate hypothesis always predicts that there will be a
relationship between the variables being studied.
• It is denoted by Ha

Non Directional Directional

Hypothesis Hypothesis
• If the hypothesis simply predicts that there will be a difference between
the two groups, then it is a non-directional hypothesis. It is non-
directional because it predicts that there will be a difference but does
not specify how the groups will differ.
e.g. Lack of attention leads to failure.

• If, however, the hypothesis uses so-called comparison terms, such as

“greater,”“less,”“better,” or “worse,” then its a directional hypothesis. It
is directional because it predicts that there will be a difference between
the two groups and it specifies how the two groups will differ.
e.g. A person whose attitude is positive towards studies is more likely
to succeed than one who do not.
A hypothesis can be descriptive or relational hypothesis.
Descriptive Hypothesis- This is simply a statement about the magnitude,
trend or behaviour of a population under study. Based on past records,
the researcher makes some presumptions about the variable under study.
For example-
 Students from the pure science background score 90-95 percent on a
course on quantitative methods.
 The literacy rate in the city of Indore is 100 percent.
• Relational Hypothesis- These are some kind of hypothesis which state the
expected relationship between two variables. While stating the relation if the
researcher makes use of words such as increase, decrease, less than more than ,
the hypothesis is stated to be directional or one –tailed test.

• For example ,
 Higher the likeability of the advertisement, the higher the recall rate.
Sometimes the researcher might not have reasonable supportive data to hypothesize
the expected direction of the relationship. In this case he or she would leave the
hypothesis as non-directional or two-tailed test.
For example,
There is a relationship between quality of working life and job satisfaction
experienced by employees.
Ban on smoking has an impact on cigarette smoking.
Formulation of Hypothesis

• A hypothesis is formulated after

• the problem has been stated and
• the literature study has been conducted

• It is formulated when the researcher is totally aware of the theoretical

and empirical background to the problem
• Hypotheses is formulated using induction and deduction method
• Hypothesis will be generated from the problem statement.
• Read the problem statement thoroughly.
• Narrow or limit it and express it as a research question.
• A research hypothesis has two elements(variables) that are in relation
to one another.
• Avoid judgmental words in hypothesis.
• Hypothesis must involve an issue or question that cannot be answered
exclusively.
• It is best to choose a hypothesis where there is some level of familiarity
with the disciplines that are most relevant to the topic.
• All the terms must be clearly understood and defined.
• It is to be noted that hypothesis may change over time as the research
progresses.
Procedure for hypothesis testing

Test statistic(
Setting up the Selecting a
mean/proportion/var
hypotheses significance level
iance)

Critical values/level of
decision significance/type of
test