Chapter 3

METHODOLOGY
Introduction:
3.0 RESEARCH METHODOLOGY:
According to White (2000) the approach a researcher uses to investigate a subject is
termed the Methodology. Methodology refers to the philosophical basis on which the
research is founded. The techniques are used to collect data and information is called
methods.
Saunders et al (2000) suggested Research Process Onion concept, which is used as
typology while executing the research objectives. It has five layers which highlights
issues responsible for selection of data collection methods. The first layer deals with
selection of research philosophy i.e. positivism, the second layer deals with deductive
and inductive approach. The third layer examines the strategy which is adopted in the
research. The last layer deals with various data collection methods.
3.2 RESEARCH PHILOSOPHY:
The research philosophy of the research depends on the way the researcher thinks about
the development of knowledge. Four main philosophical positions discussed in relation
to research are positivism, interpretivism, realism and Constructivism. According to
Saunders there are mutually exclusive views about the way in which knowledge is
developed and judged. By supporting this statement Fisher (2008) suggested there are
seven types of approaches, out of which the positivism, interpretivism and realism are
important. These three play vital role in business and management research.
Positivism:
Positivism has many facets as viewed by its critics, it is regarded as seeking to apply
scientific research methods to the study of social phenomenon (for instance:
management)
Interpretivism:
Interpretivism is research philosophy that requires the researcher to seek to understand
the subjective reality and meanings of participants. Saunders (2003)

According to Rune son (1999) the purpose of science is instead to interpret events, which
receive their meanings only from the way they are perceived by the people involved.

Realism:
It is based on the belief that a reality exists that is independent of human thoughts and
belief (Saunders, 2003). In realism, peoples socially constructed interpretations are
important, as there are influenced by social forces and processes and may constrain
participants views.
The researcher would use interpretivist approach to analyze the data which is collected
from different participants as their have varied opinions, and perceptions.
The participants data helps researcher to understand more about their intensions and
motives, which further supports for research study.
The researcher will be interpretivist in her research approach.
Constructivism:
The constructive researchers normally have elements of understanding and construction, as
the name itself is self explanatory. The normally deal with qualitative type of research in
which researcher understands the scenario and draws the conclusion from the data collected
from several participants. The proponents of this philosophy argue that reality is socially
constructed and subject, because observer is a part of the observed (Easter by-Smith et al.,
1991).
The research under study is predominantly grouped under the asylum of constructive
paradigm, because the been collected will become analytical tool for assessing of working
capital management in M/S Hindustan shipyard limited .higher level managers in M/S
Hindustan shipyard limited are to be

interviewed to find their perceptions and related

information about the aspects of ratio analysis. Qualitative statistical tools to be used to
analyze findings collected from reasonably cluster sample size. The prime objective search
undertaking is to achieve objective interpretation. on the other hand investigation conducted
will be co-related with the acquired knowledge about the performance of firm. Despite some
information from companies balance sheet was also taken as tool for assessment in an
subjective manner. Hence, the work mainly follows constructive philosophy.

3.3 RESEARCH APPROACH:

The main approaches to research are deductive and inductive. Both are important in
understanding the theory of construction. Deductive reasoning is a theory testing
process which commences with an established theory or generalization, and seeks to see
if the theory applies to particular instances (Hyde 2000). This approach is also known as
Bottoms Down approach. The main expression of positivist approach is deductive
method which is generally believed to govern the procedures of natural scientific
investigation (Riley et al, 2000). This develops on theoretical frame work, on contrary
inductive approach develops on data, which will relate to the theory.
Inductive reasoning is a theory building process, starting with observations of specific
instances, and seeking to establish generalizations about the phenomenon under
investigation Hyde (2000). According to Riley et al (2000) induction is the process
whereby the exploration and analysis of related observations lead to the construction of
theory that systematically links observations in a meaningful way.
The researcher intends to use deductive approach , which will strengthen the weakness
which lies in different types of methods being followed in this research.
The present work categorized under deductive approach basing on pattern of study and
analysis. This work is stated as deductive because established theories and concepts were
statistically analyzed and explained. The relationship between performance to methods
adopted is explained which can be justified as contrary inductive type of research.
3.4 RESEARCH STRATEGY:
The use of multi method approaches in research method has various advantages. By use
of different approaches one can easily examine particular phenomenon and understand
techniques better. This integrated approach is also known as Triangulation. It
includes qualitative and quantitative methods.
According to Riley et al (2000) as stated by Jary & Jary (1991) distinguished the two
methods, Qualitative techniques rely on the skills of the researcher as an interviewer or
observer in gathering data whereas quantitative methods place reliance upon the
research instruments employed to gather data and analyze/measure it (ex:
questionnaires, experiments).According to Saunders et al (2003) qualitative research

deals with distinctions based on quality and quantitative research involves considering
amount or size.
3.4.1 QUALITATIVE RESEARCH:
The use a qualitative research interview allows the researcher to collect rich and detailed set
of data. Qualitative research is subjective in nature, and emphases on meanings, experiences,
description Naoum (2005).
According to Naoum (2005) as stated by Zikmund, (1997) the information gathered is
classified into two, they are exploratory and attitudinal. The exploratory research is
conducted for three purposes: diagnostic a situation, screening alternatives, and to discover
new ideas. It figures out the issues of employees concern or it can be used to generate
possible explanation for motivational patterns. Attitudinal research: Its used to subjectively
evaluate the opinion, view, or the perception of a person, towards a particular object. The
term object is referred to as factor or a question.
Interviews:
Interview is an important way of colleting primary data while using the qualitative approach.
(Sekaran, 1992) nikki. There are several forms of interviews, they are personal interview,
unstructured, semi-structured interviews and structured interviews. Different types of
interviews are useful for different research purposes. Fisher (2008) suggests that this form of
interview makes respondent to think of occasions in their working life when they had to deal
with a particular kind of issue, for example managing problem staff.
Focus Group:
The researcher will use focus group to investigate certain areas of his researcher, to know the
opinions of the people. The focus group is designed to share the experience of group of
people and to participate in that shared understanding Hines (2005). Saunders (2003)
suggests focus groups are associated with a lower higher level of structure and intervention.
Focus groups in general are designed to obtain views about a product range that are likely
larger than a group interview.
The researcher is looking forward to conduct focus group interview with the employees M/S
Hindustan Shipyard Limited.

3.4.2 QUANTITATIVE RESEARCH:

It involves an objective way of studying things White (2000). According to Hines (2005)
it refers to data collected or generated by means of a survey, an experiment, or
observation and the results are then declared and a conclusion is drawn that accepts or
rejects the hypothesis being tested. The researcher will make use of questionnaire and
survey to gather data from source within the organization.
Two processes have to be considered if questionnaire is adopted in the research; there
are a) creative process of writing questions and b) design process of questionnaire in
terms of objectives and intended subjects.
Questionnaires design:
According to Riley et al (2000), three questions should be considered while designing the
questionnaires, there are 1) how to induce people to fill it in, 2) how are the responses to
be aggregated, 3) more important will the questionnaire achieve the objectives?
Some of the key issues should be considered during construction of questionnaire, there
are

The length of questionnaire

Whether postal, face to face interview or telephone based questionnaire.

The need to computerize the data

Where to put personal details

Whether to use check questions.

According to Ranjit(2005), the design of questionnaire is categorized into two major groups,
they are (1) structured and (2) unstructured questionnaire. The author describes structured
approach having the predetermined objectives and was classified under Quantitative
approach. For example in our questionnaire Q. No. 4 and 6 are grouped under quantitative
type. The design for a quantitative questionnaire is mainly closed ended.

(6) Do you think company has taken measures to reduce debtors and to increase credit sales?
Yes

No

The above illustrated example resembles the quantitative design of questionnaire in the
present work. However, majority of questionnaire design was exactly contrary.
The author also presents the design of qualitative related questionnaire, which are basically
open ended giving chance for the respondent to describe the situation in his/her own accord.
For example in our thesis work:

(3) What could be the implication of effective management on working capital?

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So, finally this work follows qualitative approach on majority framing open ended
questionnaire, nevertheless couple of closed ended questionnaire inclusion could make
interview pattern and questionnaire design quantitative.
3.5 SAMPLE SELECTION& SAMPLING FRAME:
The researcher will target higher officials of M/S Hindustan Shipyard Limited who have
access to HR in order to get useable information from them. In this study purposive
sampling is appropriate since the data is being selected from only those who have access.
According to Bick man and Rog (1998) sampling frame is the operational definition of
the population, which explains the group about which the researcher can reasonably
speak. The researcher aims at using two sample frames each representing middle level
employees and high level employees.
3.6 RESEARCH ETHICS:
According to oxford dictionary the word ethics means a branch of philosophy dealing
with values relating to human conduct, with respect to the rightness and wrongness of
certain actions. In the context of research, ethics refers to the appropriateness of ones
behavior in relation to the rights of those who become the subject of researchers work,
or are affected by it (Saunders, 2000).

A number of key ethical issues that researchers across during their research are as
follows:

In business research researcher comes into direct contact with people in the company
or in an organization, therefore researcher conducting ethical research involves
obtaining informed consent from his/her participants

Researcher should maintain confidentiality and anonymity in terms of gaining

access to organizations or individuals.

Researcher should make sure that peoples dignity, privacy and confidences are
respected. The data collected, in particular which defines any one, should be
handled correctly.

Researcher should be aware about the questionnaire, sometimes people job roles
can be upsetting for those taking part in the research and people have right to
refuse to answer the questions.

Non disclosure of employee names will be maintained, their names will be

replaced by number in the reports.

The researcher should not betray things told by the people in confidence to
others, and should maintain to disguise their identities if needed.

The researcher should maintain objectivity, should make sure they collect the
data accurately and fully, without objectively collected data, the researcher
cannot analyze and report the work correctly, thereby the outcome would be
unsatisfactorily.

Researcher should comply with the any rules of the organization has on
collection of data, and any legislation on data handling and data privacy.

If needed data through internet and email, it should be done carefully to avoid
sharing between with other participants

The researcher is well aware of academic misconduct, any data collected from
books, journals, magazines and internet will be referenced fully.

To carry out the research smoothly and accurately the researcher should abide by
the research ethics.

3.7 RESEARCH CREDIBILITY:

Research design covers a number of separate, but related issues associated with the
research (White, 2000).There is two important concepts which are to be considered are
reliability and validity; they play an important role in reducing the possibility of getting
the answers wrong in the research.
Reliability:
Reliability is about consistency of the research, and whether another researcher could
use the same research design and obtain similar findings (White, 2000). The major threats
of reliability are subject or participant error, participant bias, observer error and observer bias.
Validity:
Validity is concerned with the idea that the research design fully addresses the research
questions and objectives the researcher is trying to answer and achieve (White, 2000).
According to Saunders validity is concerned with whether the findings are really about what
they appear to be about.
Some of the threats for validity that raise potential issues in research are follows:
The researcher objective is to convince the people that the observations are based on
detailed investigation report, but not referred examples.
The researcher intends to use interviews for collecting information and data. The
researcher will interview the amicable managers and supervisors who can give reliable
and relevant data on the research topic. In this research, the researcher will target

mainly the managers as the information pertaining to recruitment and selection are
only accessed by them. By conducting interviews researcher will understand the
perceptions, and opinions of staff as well as employees about the various issues in
Human Resource Department. The researcher aims to know the different methods
adopted by M/S Hindustan Shipyard Limited.
The researcher will use semi structured interviews because of various reasons like, they
are flexible with open and close questions, and the researcher can probe the
participants. By using this form of interview the researcher will come to know the methods
and processes of recruitment and selection.
The method of inquiry involves structured and close and open ended questionnaire which will
be predominantly a qualitative approach.
The sample size consider for the research study was limited to higher level
managers.
3.8 RESEARCH LIMITATIONS:
Every study is conducted under some limitations. Some of the limitations of the Study
are as follows.
During the project period most of the staff members are busy with auditing and other
works. So, they could not afford to give full information.
Since officials, executives and others were busy the study was primarily focused on
secondary data.
Some of the information was not available due to the confidential matters.
By observing financial performance of M/S Hindustan Shipyard Limited, whole
shipping industrys performance cant be judged.
For the accounting year 2007-2008 the accounts have not been finalized due to this,
information relating to this period is not gathered.
Limited time is given to study about their aspects.
The data collected and analyzed was limited due to time and cost constraints.
SECONDARY DATA LIMITATIONS:
The researcher should carefully review the information from the secondary data
available; the authenticity of the data is done on careful study of the data. There is
enormous information in various sources like journals, websites, magazines, research

papers and books. The researcher may find data collection difficult, confusing during
selecting and documenting the information.