Value of management research in business decision making
The researcher drives every aspect of major decision-making. The prime managerial value of business research is that it reduces uncertainty and explores opportunities by providing information that helps to improve the decision of the business. Research provides supports in the following dimensions of decision making:
1. Identify problems:
Business research helps to determine the nature of situations or identify the existence of problems in the organizations. Business research is used as a scanning tool to provide information related to occurrences within an organization and its impact environment. It scans the environment and helps to identify potential problems that may take place in the organization. It helps them to understand new situations like a change in socioeconomic, legal condition, cultural situation and know the impact of such environment in the organization.
2. Diagnosing and assessing problems and opportunities:
After identifying the problems or potential opportunities, the researcher diagnoses situations so as to clarify the situation. The manager should gain insight into the underlying factors causing the situation. If there is a problem, they need to specify the problems and causes. If an opportunity is found, they need to explore, clarify and refine the nature of the opportunity. If multiple opportunities are seen then research should be conducted to set the priorities. The researcher may undertake qualitative and quantitative analysis so that they can understand the practical courses of action.
3. selecting the best course of action:
After the identification of problems and opportunities, research is often conducted to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action. For example: if a manufacturer wants to establish a spinning mill in Butwal or Kathmandu then he/she needs to conduct research to evaluated and select the best alternative. The course of action is evaluated through the use of various performance criteria i.e. market potential, cost factors, sales, etc. objective information generated by research to forecast environmental occurrences may be the foundation for selecting a particular course of action. After evaluating the alternatives research suggests the best alternatives to the manager along with the cause of selection and procedures for implementing it.
4. Implementing a course of action:
The best plan may also fail if it is not properly implemented. A manager can undertake the research to find out the tactics to implement the course of action. Research provides real information regarding the situation so that the manager can prepare various subsidiary plans to implement a course of action. For example: if Butwal is selected as the best place then the manager can decide about financial plan HR plan, technology plan so as to implement the best alternatives.
5. Evaluating the course of action:
Evaluation refers to the precise and objective measurement and appraisal of the action whether it can achieve the goal of the project or program. After the execution of the course of action, research serves as a tool to inform managers whether planned activities are properly executed and achieved the results as expected. In other words, managers may use evaluation research to provide feedback for evaluation and control of strategies and tactics.