CHAPTER 1

INTRODUCTION

Q.1 Define research? What are the characteristics of research?

Research generally refers to a search for truth and knowledge. Redman and Mory defines
research as a systematic efforts to gain new knowledge. It is also a scientific inquiry for
finding solution for problem. In other words, it is a formal, systematic and scientific
investigation either for (a) new discovery or development of new theory or modification the
existing theory; or for (b) development of new methods, models techniques, innovation, and
improved practices for practical implications or to fill the gap between realized and expected
outcomes.
Characteristics and nature of research:1. Research is directed towards the solution of a problem. It may attempt to answer a
question or to determine the relation between two or more variables.
2. Research emphasizes the development of generalizations, principles, or theories that will
be helpful in predicting future occurrences. Research usually goes beyond the specific
objects, groups or situation investigated and infers characteristics of a target population
from the sample observed. Research is more than information retrieval, the simple
gathering of information. Although many school research departments gather and tabulate
statistical information that may be useful
3. Research is based upon observable or empirical evidence. Certain interesting questions
do not lend themselves to research procedures because they cannot be observed. Research
rejects revelation and dogma as methods of establishing knowledge and accepts only
what can be verified by observations.
4. Research demands accurate observation and description. The researcher uses quantitative,
numerical measuring devices, the most precise means of description. The researcher
selects or devices valid data gathering instruments or procedures and employs appropriate
mechanical, electronic, or psychometric devices to refine human observation, recording,
computation, and analysis of data.
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5.

Research involves gathering new data from primary or first-hand sources or using
existing data for new purpose. Teachers frequently assign a so-called research project that
involves writing a paper dealing with the life of a prominent person. The students are
expected to read a number of encyclopedias, books, or periodical references, and
synthesize the information in a written report. This is not research, for the data are not
new. Merely reorganizing or restarting what is already known and has already been
written, valuable as it may be as a learning experience, is not research. It adds nothing to

what is known.
6. Although research activity may at times be somewhat random and unsystematic, it is
more often characterized by carefully designed procedures, always applying rigorous
analysis. Although trial and error are often involved, research is rarely a blind, shotgun
investigation-trying something to see what happens.
7. Research requires expertise. The researcher knows what is already known about the
problem and how others have investigated it. He has searched the related literature
carefully. He is also thoroughly grounded in the terminology, the concepts, and the
technical skill necessary to understand and analyze the data that he has gathered.
8. Research strives to be objective and logical, applying every possible test to validate the
procedures employed, the data collected, and the conclusions reached. The researcher
attempts to eliminate personal bias. There is no attempt to persuade or to prove an
emotionally held conviction. The emphasis is on testing rather than on proving the
hypothesis. Although absolute objectivity is as elusive as pure righteousness, the
researcher tries to suppress bias and emotion in his or her analysis.
9. Research involves the quest for answers to unsolved problems. Pushing back the frontiers
of ignorance is its goal, and originality is frequently the quality of a good research
project. However, previous important studies are deliberately repeated, using identical or
similar procedures, with different subjects, different settings, and at a different time. This
process is replication, a fusion confirm or to raise question about the conclusions of
previous study.
10. Research is characterized by patient and unhurried activity. It is rarely spectacular and the
researcher must accept disappointment and discouragement as he pursues the answers to
difficult questions.
11. Researcher is carefully recorded and reported. Each important term is defined, limiting
factors are recognized, procedures are described in detail, references are carefully
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documented, results are objectively recorded, and conclusions are presented with
scholarly cautions and restraint. The written report and accompanying data are made
available to the scrutiny or associates or other scholars. Any competent scholar will have
the information necessary to analyze, evaluate, and even replicate the study.
12. Researcher sometimes requires courage. The history of science reveals that many
important discoveries were made inspite of the opposition of political and religious
authorities.

Q.2 Explain the need and importance of research in business.

Research is an important element in business administration in many different ways as follows;
Testing of new products-Business research tests the potential success of new products.
Companies must know what types of products and services customers want before they market
them. Market research will minimize risk Market research can help shape a new product or
service, identifying what is needed and ensure that the development of a product is highly
focused towards demand.
Ensuring adequate distribution-Companies may also use business research to ensure the
adequate distribution of their products. For example, a consumer products company may want to
talk to retailers about all the different brands they sell. The results of the business research will
help marketing managers determine where they need to increase their product distribution.
Measuring advertising effectiveness-Companies use business research to determine the success
of their advertising. For example, a milk manufacturer may want to know what percentage of the
population saw its most recent television commercial. The milk company may find that more
people become aware of its advertising the longer the television ad runs. The milk company may
need to run its television advertisements at different times if few people have seen the
commercials.
Studying the competition-Companies often use the business research to study key competitors
in their markets. Companies will often start with secondary research information or information
that is already available. For example, a software company may want to know the percentage to
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customers in the markets who purchase its products versus competitors products. The
researchers can then study the purchasing trends in the industry, striving to increase their
companys share of the market. Companies will often need to increase their market share in an
industry to increase sales and profits.
Research is an essential part of any business that wants to offer products or services that are
focused and well targeted. Business decisions that are based on good intelligence and good
market research can minimize risk and pay dividends and by making market research part and
parcel of the business process.
Research creates benchmarks and helps to measure the progress. Early research may highlight
glaring holes in services and short falls in products, so with the help of regular market research
will show the improvements are being made and if positive, will help motivate a team.
Research will help to better communicate-Current customers experiences are a valuable
information source, not only will they allow to gauge how well the company currently meets
their expectations. It can also tell the company whether thighs are getting rights and more
importantly where the things are getting wrong.
Doing research in business management is vital as it helps a business plan for the future, based
on what may have happened in the past. If carried out successfully it can help a company make
informed plans on how to become more viable in its sector. Some business experts agree that
looking to the future of business is very much about looking at the past. The two are interlinked
and by carrying out research are more likely to see a positive outcome in your chosen objective.
In business, making ill informed decisions may be very precarious as there may be too much
money at risk companys reputation may be put at stake.
Research provides a business with a chance to update itself on the latest market trends; such
knowledge will prove helpful in the formulating of useful concepts and tactics for success in the
market. All things considered, it is through research that a business is able to make educated and
informed decisions.

Research helps the business to improve the productivity, lower the cost and save time and retain
expertise of their core competencies and this through research discovery of new technology and
development which leads to development of innovations management system for future growth.
Research helps to the business to continually revise their design and range the product to
continuous technological changes and changing preference of customers.
It also helps in the recruitment of employees. Its through research that human resources mangers
are able to identify and recruit skilled manpower. Proper recruitment of employees with the right
skills and attitude helps the firm to increase its productivity levels. Research for the right
employees can be got via the internet, consultancy firms and institutions of higher learning.
Research helps the firm to get the right supplier at the right price and at the right time. A proper
supplier selection enables the firm to get or acquire high quality raw materials which result into
production of high quality products that are consumed by the end user. Also reliable and efficient
suppliers help a firm to perform effectively as supplies will be got in time.
So every business organization needs to conduct business research. By starting out with some
easily accessible resource, it helps to develop better marketing strategies that can be position for
market growth.

Q.3 Discuss the need and importance of research in social science?

What is social science research? This is not an easy question and there are no simple,
authoritative answers since social science research has been defined in many, sometimes
conflicting, ways. But it is an important one, because whatever one says about social science
research must be premised on this delineation. Social science researchalthough social inquiry
would be a more appropriate termas used throughout this book, refers to any scientific study of
human action and interaction focusing on elements of thought and behavior that are in some
sense social. As such, social scientists aspire to science. They intend to study human action and
interaction and thought and behavior in a systematic, rigorous, evidence-based, generalizing,
replicable, and cumulative fashion. Such research is, or can be, of great importance to human
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affairs. Even though some social scientists would dispute this definition, it is, nonetheless,
neither too precise nor too general and therefore sufficient to define the practice of social science
research in a lucid, cogent way.
That being said, social science research is, more specifically, a truth-seeking activity aimed at
contributing to existing knowledge, generating new knowledge, or for application to some
specific problem related to human action and interaction. Truth seeking is the search or
investigation of or for a body of real things, events, or facts. In the social sciences truth seeking
is normally the process of applying a scientific method to social inquiry. A scientific method is
the set of principles and procedures used by social scientists for investigating phenomena,
acquiring new knowledge, or correcting and integrating previous knowledge. In many instances,
this process involves formulating or testing a specific theory or hypothesis, in the broadest sense,
where theory is defined as a set of interrelated constructs, definitions, and propositions that
present a systematic view of phenomena by specifying relations among variables, with the
purpose of explaining and predicting phenomena

Q.4 State and explain the objectives of research?

Objective of research is one the important elements for conducting any research because it helps
in determining the possibility of conducting the study. Basically, the broad aim of all researches
is to confirm the reliability of existing knowledge and to find the deviation of existing
knowledge i.e. to contribute new knowledge in the existing knowledge. Before conducting the
research it is important to identify your objectives because it evades wastage of time and efforts
in afterward stages. Keeping the system requirement into consideration, research objectives must
be clearly identifiable. To identify a research objective following things are important.
Research Questions
A research question arises before the study is conducted. These problems are the issues which are
not resolved till date. Some of the important problems which can arise during research are: What
is the objective of the study? How would the objective of the study be achieved? And why is the

specified method applied for the study? Objectives and Hypotheses of the study or research
problem would be achieved by giving answers to the above questions.
Hypotheses
Hypotheses are assumptions about some characteristics of population which must be accepted or
rejected on the basis of empirical evidence. Few examples of the hypotheses are given below:
1. A firm performance has positive relationship with capital structure.
2. There is a positive relationship between firm performance and CEO compensation.
3. Direct foreign investments has no influence over the employment of the country.
In the above conditions, Hypotheses may be true or false. It is generally constructed for a
situation where the influence is not explicit. After collecting and analyzing the data the fact can
be identified.
Research Study Boundary
After clearly defining the research problems and hypotheses, the boundaries and limits of the
study must be properly defined. Assumptions of the study will make the research infeasible when
it will consider the whole universe in the study. Although, it may be beneficial for the firm to
evaluate each and every aspect during the process of research but it is not possible due to size
constrains and complexities.

Q.5 Explain the various types of research?

The various types of research are as follows
1. Pure research It is also called as the fundamental or the theoretical research. It is basic
and original. It can lead to the discovery of a new theory. It can also result in the
development or refinement of a theory that already exists. It helps in getting knowledge
without thinking formally of implementing it in practice based on the honesty, love and
integrity of the researcher for discovering the truth.
2. Applied research It is based on the concept of the pure research. It is also problem
oriented. It helps in finding results or solution for real life problems. Provides evidence of
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usefulness to society. It helps in testing empirical content of a theory. Utilizes and help in
developing the techniques that can be used for basic research. It helps in testing the
validity of a theory but under some conditions. It provides data that can lead to the
acceleration of the process of generalization.
3. Exploratory research It involves exploring a general aspect. It includes studying of a
problem, about which nothing or a very little is known. It follows a very formal approach
of research. It helps in exploring new ideas. It also helps in gathering information to
study a specific problem very minutely. It helps in knowing the feasibility in attempting a
study.
4. Descriptive research It is the simplest form of research. More specific in nature and
working than exploratory research. It involves a mutual effort. It helps in identifying
various features of a problem. It is restricted to the problems that are describable and not
arguable and the problems in which valid standards can be developed for standards.
Existing theories can be easily put under test by empirical observations. Underlines
factors that may lead to experimental research. It consumes a lot of time. It is not directed
by hypothesis.
5. Diagnostic study It is quite similar to the descriptive research. It identifies the causes
of the problems and then solutions for these problems. It is also related to casual
relations. It is directed by hypothesis. It can be done only where knowledge is advanced.
6. Evaluation study It is the form of applied research. Studies the development project.
Gives access to social or economical programmes. Studies the quality of an activity.
7. Action research It is the type of evaluation study. It is concurrent to evaluation study.
8. Field Study Field studies are scientific enquires aimed at discovering the relations and
interactions among sociological, psychological and educational variables in social
institutions and actual life situations like communities, schools, factories, organizations
and institutions. A social or institutional situation is selected and the relations among the
attitudes, values, perceptions and behaviors of individuals and groups in the selected
situation are studied.
9. Case study A case study is an in-depth comprehensive study of a person, a social
group, an episode, a process, a situation, a programme, a community, an institution or any
other social unit.
It is one of the most popular types of research methods. Its purpose may be to understand
the life cycle of the unit under study or the interaction between factors that explain the
present status or the development over a period of time. Some examples of a case study
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are a social-anthropological study of a rural or tribal community, a causative study of a

successful cooperative society.
10. Survey Survey is fact finding study. It is a method of research involving collection of
data directly from a population or a sample thereof at particular time. It must not be
confused with the mere clerical routine of gathering and tabulating figures. It requires
experts and imaginative planning, careful analysis and rational interpretation of the
finding. Data may be collected by observation, or interviewing or mailing questionnaires.
The analysis of data may be made by using simple or complex statistical techniques
depending upon the objectives of the study.
11. Action research Action research is a type of evaluation study. It is a concurrent
evaluation study of an action programme launched for solving a problem/for improving
an existing situation.
12. In the quest for development, advancement, excellence and promotion of welfare of
people, government, institutions and voluntary agencies undertake action programmes for
achieving specific goals or objectives. Land reform programmes, agricultural extension
programmes, social welfare programmes, human resource development programmes,
managerial improvement programmes, rural development programmes, programmes for
improving the quality of life in factories and offices etc, are some examples of action
programmes. This plethora of development programmes has given impetus to action
research. With the pressing need to assess the relative effectiveness of different
approaches to the same goal or the worthwhileness of one goal as against another,
research has been called upon to play a closer and relevant role for action. The criterion
of relevance fir action is if critical importance in action research.
13. Experimental research There are various phenomena such as motivation, productivity,
development and operational efficiency, which are influenced by various variables. It
may be necessary to assess the effect of one particular variable or one set of variables on
a phenomenon. The need has given rise to experimental research.

Q.6.Describe the issues and problems in research.

Following are the issues and problems in research are as follows:
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1. The lack of a scientific training in the methodology of research is a great impediment for
researchers in our country. There is paucity of competent researchers. Many researchers take a
leap in the dark without knowing research methods. Most of the work, which goes in the
name of the research, is not methodologically sound. Before undertaking research projects,
researchers should well equip with all methodological aspects. As such, efforts should be to
provide short-duration intensive courses for meeting this requirement.
2. There is insufficient interaction between the university research departments on one side and
business establishments, government departments and research institutions on the other side.
A great deal of primary data of non-confidential nature remain untouched/untreated by the
researchers for want of proper contacts efforts should be made to develop satisfactory liaison
among all concerned for better and realistic researchers.
3. Most of the business units in our country do not have the confidence that the material
supplied by them to researchers will not be misused and as such they are often reluctant in
supplying the needed information to researchers. Thus, there is the need for generating the
confidence that the information/data obtained from a business unit will not be misused.
4. Research studies overlapping one another are undertaken quite often for want of adequate
information. This results in duplication and fritters away resources. This problem can be
solved by proper compilation and revision, at regulars intervals, of a list of subjects on which
and the places where the research is going on. Due attention should be given toward
identification of research problems in various disciplines of applied science which are of
5.

immediate concern to the industries.

There does not exist a code of conduct for researchers and inter-university and interdepartmental rivalries are also quite common. Hence, there is no need for developing a code

of conduct for researchers which, if adhered sincerely, can win over this problem.
6. Many researchers, in our country also face the difficulty of adequate and timely secretarial
assistance, including computerial assistance. This causes unnecessary delays in the
completion of research studies. All possible efforts are made in this direction so that efficient
secretarial assistance is made available to researchers and that too well in time.
7. Library management and functioning is not satisfactory at many places and much of the
time and energy of researchers are spent in tracing out the books, journals, reports, etc., rather
than in tracing out relevant material from them.
8. There is also the difficulty of timely availability of punished data from various government
and other agencies doing this job in our country. Researcher also faces the problem on account

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of the fact that the published data vary significantly because of differences in coverage by the
concerning agencies.
9. There may, at times, take place the problem of conceptualization and also problem relating
to the process of data collection and related things.
10. The scientific method in social sciences is affected by the problem of bias on the part of the
researcher. Some researchers may be biased in using scientific method. They may draw
conclusions subjectively depending upon their likes, dislikes, emotions, etc.
11. There are problem in sampling, the selected sample of respondent may not represent the
universe, and as such, even if the study conducted with the use of scientific method, may not
bring objective result.
12. The physical phenomena may be known directly through senses, but the social phenomena are
known only symbolically through words representing such social phenomena. It is difficult to
verify the conclusion drawn from social research.

CHAPTER 2
RESEARCH METHODOLOGY

Q.1.Describe the steps in scientific research process?

Scientific research involves a systematic process that focuses on being objective and gathering a
multitude of information for analysis so that the researcher can come to a conclusion. This
process is used in all research and evaluation projects, regardless of the research method
(scientific method of inquiry, evaluation research, or action research). The process focuses on
testing hunches or ideas in a park and recreation setting through a systematic process. In this
process, the study is documented in such a way that another individual can conduct the same
study again. This is referred to as replicating the study. Any research done without documenting
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the study so that others can review the process and results is not an investigation using the
scientific research process. The scientific research process is a multiple-step process where the
steps are interlinked with the other steps in the process. If changes are made in one step of the
process, the researcher must review all the other steps to ensure that the changes are reflected
throughout the process. Parks and recreation professionals are often involved in conducting
research or evaluation projects within the agency. These professionals need to understand the
eight steps of the research process as they apply to conducting a study.
Step 1: Identify the Problem
The first step in the process is to identify a problem or develop a research question. The research
problem may be something the agency identifies as a problem, some knowledge or information
that is needed by the agency, or the desire to identify a recreation trend nationally.The problem
that the agency has identified is childhood obesity, which is a local problem and concern within
the community. This serves as the focus of the study.
Step 2: Review the Literature
Now that the problem has been identified, the researcher must learn more about the topic under
investigation. To do this, the researcher must review the literature related to the research
problem. This step provides foundational knowledge about the problem area. The review of
literature also educates the researcher about what studies have been conducted in the past, how
these studies were conducted, and the conclusions in the problem area. In the obesity study, the
review of literature enables the programmer to discover horrifying statistics related to the longterm effects of childhood obesity in terms of health issues, death rates, and projected medical
costs. In addition, the programmer finds several articles and information from the Centers for
Disease Control and Prevention that describe the benefits of walking 10,000 steps a day. The
information discovered during this step helps the programmer fully understand the magnitude of
the problem, recognize the future consequences of obesity, and identify a strategy to combat
obesity (i.e., walking).
Step 3: Clarify the Problem

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Many times the initial problem identified in the first step of the process is too large or broad in
scope. In step 3 of the process, the researcher clarifies the problem and narrows the scope of the
study. This can only be done after the literature has been reviewed. The knowledge gained
through the review of literature guides the researcher in clarifying and narrowing the research
project. In the example, the programmer has identified childhood obesity as the problem and the
purpose of the study. This topic is very broad and could be studied based on genetics, family
environment, diet, exercise, self-confidence, leisure activities, or health issues. All of these areas
cannot be investigated in a single study; therefore, the problem and purpose of the study must be
more clearly defined. The programmer has decided that the purpose of the study is to determine
if walking 10,000 steps a day for three days a week will improve the individuals health. This
purpose is more narrowly focused and researchable than the original problem.
Step 4: Clearly Define Terms and Concepts
Terms and concepts are words or phrases used in the purpose statement of the study or the
description of the study. These items need to be specifically defined as they apply to the study.
Terms or concepts often have different definitions depending on who is reading the study. To
minimize confusion about what the terms and phrases mean, the researcher must specifically
define them for the study. In the obesity study, the concept of individuals health can be
defined in hundreds of ways, such as physical, mental, emotional, or spiritual health. For this
study, the individuals health is defined as physical health. The concept of physical health may
also be defined and measured in many ways. In this case, the programmer decides to more
narrowly define individual health to refer to the areas of weight, percentage of body fat, and
cholesterol. By defining the terms or concepts more narrowly, the scope of the study is more
manageable for the programmer, making it easier to collect the necessary data for the study. This
also makes the concepts more understandable to the reader.
Step 5: Define the Population
Research projects can focus on a specific group of people, facilities, park development,
employee evaluations, programs, financial status, marketing efforts, or the integration of
technology into the operations. For example, if a researcher wants to examine a specific group of
people in the community, the study could examine a specific age group, males or females, people
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living in a specific geographic area, or a specific ethnic group. Literally thousands of options are
available to the researcher to specifically identify the group to study. The research problem and
the purpose of the study assist the researcher in identifying the group to involve in the study. In
research terms, the group to involve in the study is always called the population. Defining the
population assists the researcher in several ways. First, it narrows the scope of the study from a
very large population to one that is manageable. Second, the population identifies the group that
the researchers efforts will be focused on within the study. This helps ensure that the researcher
stays on the right path during the study. Finally, by defining the population, the researcher
identifies the group that the results will apply to at the conclusion of the study. In the example in
table 2.4, the programmer has identified the population of the study as children ages 10 to 12
years. This narrower population makes the study more manageable in terms of time and
resources.
Step 6: Develop the Instrumentation Plan
The plan for the study is referred to as the instrumentation plan. The instrumentation plan serves
as the road map for the entire study, specifying who will participate in the study; how, when, and
where data will be collected; and the content of the program. This plan is composed of numerous
decisions and considerations that are addressed in chapter 8 of this text. In the obesity study, the
researcher has decided to have the children participate in a walking program for six months. The
group of participants is called the sample, which is a smaller group selected from the population
specified for the study. The study cannot possibly include every 10- to 12-year-old child in the
community, so a smaller group is used to represent the population. The researcher develops the
plan for the walking program, indicating what data will be collected, when and how the data will
be collected, who will collect the data, and how the data will be analyzed. The instrumentation
plan specifies all the steps that must be completed for the study. This ensures that the
programmer has carefully thought through all these decisions and that she provides a step-bystep plan to be followed in the study.
Step 7: Collect Data
Once the instrumentation plan is completed, the actual study begins with the collection of data.
The collection of data is a critical step in providing the information needed to answer the
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research question. Every study includes the collection of some type of datawhether it is from
the literature or from subjectsto answer the research question. Data can be collected in the
form of words on a survey, with a questionnaire, through observations, or from the literature. In
the obesity study, the programmers will be collecting data on the defined variables: weight,
percentage of body fat, cholesterol levels, and the number of days the person walked a total of
10,000 steps during the class.
The researcher collects these data at the first session and at the last session of the program. These
two sets of data are necessary to determine the effect of the walking program on weight, body
fat, and cholesterol level. Once the data are collected on the variables, the researcher is ready to
move to the final step of the process, which is the data analysis.
Step 8: Analyze the Data
All the time, effort, and resources dedicated to steps 1 through 7 of the research process
culminate in this final step. The researcher finally has data to analyze so that the research
question can be answered. In the instrumentation plan, the researcher specified how the data will
be analyzed. The researcher now analyzes the data according to the plan. The results of this
analysis are then reviewed and summarized in a manner directly related to the research
questions. In the obesity study, the researcher compares the measurements of weight, percentage
of body fat, and cholesterol that were taken at the first meeting of the subjects to the
measurements of the same variables at the final program session. These two sets of data will be
analyzed to determine if there was a difference between the first measurement and the second
measurement for each individual in the program. Then, the data will be analyzed to determine if
the differences are statistically significant. If the differences are statistically significant, the study
validates the theory that was the focus of the study. The results of the study also provide valuable
information about one strategy to combat childhood obesity in the community.
As you have probably concluded, conducting studies using the eight steps of the scientific
research process requires you to dedicate time and effort to the planning process.

Q.2.What is hypothesis? Explain its importance

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Every true experimental design must have this statement at the core of its structure, as the
ultimate aim of any experiment.
The hypothesis is generated via a number of means, but is usually the result of a process
of inductive reasoning where observations lead to the formation of a theory. Scientists then use a
large battery of deductive methods to arrive at a hypothesis that is testable, falsifiable and
realistic.
The precursor to a hypothesis is a research problem, usually framed as a question. It might ask
what, or why, something is happening.
For example, to use a topical subject, we might wonder why the stocks of cod in the North
Atlantic are declining. The problem question might be Why are the numbers of Cod in the North
Atlantic declining? This is too broad as a statement and is not testable by any
reasonable scientific means. It is merely a tentative question arising from literature reviews and
intuition. Many people would think that instinct and intuition are unscientific, but many of the
greatest scientific leaps were a result of hunches.
The research hypothesis is a paring down of the problem into something testable and falsifiable.
In the aforementioned example, a researcher might speculate that the decline in the fish stocks is
due to prolonged over fishing. Scientists must generate a realistic and testable hypothesis around
which they can build the experiment.
This might be a question, a statement or an If/Or statement. Some examples could be:

Is over-fishing causing a decline in the stocks of Cod in the North Atlantic?

Over-fishing affects the stocks of cod.

If over-fishing is causing a decline in the numbers of Cod, reducing the amount of

trawlers will increase cod stocks.
These are all acceptable statements and they all give the researcher a focus for constructing a
research experiment. Science tends to formalize things and use the If statement, measuring the
effect that manipulating one variable has upon another, but the other forms are perfectly
acceptable. An ideal research hypothesis should contain a prediction, which is why the more
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formal ones are favored.A scientist who becomes fixated on proving a research hypothesis loses
their impartiality and credibility. Statistical tests often uncover trends, but rarely give a clear-cut
answer, with other factors often affecting the outcome and influencing the results.
Whilst gut instinct and logic tells us that fish stocks are affected by over fishing, it is not
necessarily true and the researcher must consider that outcome. Perhaps environmental factors or
pollution are causal effects influencing fish stocks.A hypothesis must be testable, taking into
account current knowledge and techniques, and be realistic. If the researcher does not have a
multi-million dollar budget then there is no point in generating complicated hypotheses. A
hypothesis must be verifiable by statistical and analytical means, to allow a verification or
falsification.
In fact, a hypothesis is never proved, and it is better practice to use the terms supported or
verified. This means that the research showed that the evidence supported the hypothesis and
further research is built upon that.
A research hypothesis, which stands the test of time, eventually becomes a theory, such as
Einsteins General Relativity. Even then, as with Newtons Laws, they can still be falsified or
adapted.
The Purpose of a Hypothesis
A hypothesis is used in an experiment to define the relationship between two variables. The
purpose of a hypothesis is to find the answer to a question - a formalized hypothesis will force us
to think about what results we should look for in an experiment.
The first variable is called the independent variable. This is the part of the experiment that can be
changed and tested. The independent variable happens first and can be considered the 'cause' of
any changes in the outcome. The outcome is called the dependent variable. The independent
variable in our previous example is not studying for a test. The dependent variable that you are
using to measure outcome is your test score.
It is important to remember that your hypothesis must be testable. That is, you can perform a test
of how two variables might be related. This is what you are doing in a real experiment - you are
17

testing variables. It must also be measurable. If you cannot measure the results, then the
information does not help you explain why a particular outcome occurred. Let's use the previous
example again to illustrate these ideas. The hypothesis is testable because you will receive a
score on your test performance. It is measurable because you can compare test scores received
when you did study and test scores received when you did not study.
A hypothesis should always:

explain what you expect to happen

be clear and understandable

be testable

be measurable

contain an independent and dependent variable

How to Develop a Hypothesis
Another important aspect of a hypothesis is that it should be based on research. Remember that
the purpose of a hypothesis is to find the answer to a question.
The first thing you should do if you want to answer a question is to find as much information on
the topic as you can. Before you come up with a specific hypothesis, spend some time doing
research. Then, start thinking of questions you still have. After thoroughly researching your
question, you should have an educated guess about how things work. This guess about the
answer to your question is where your hypothesis comes from.
Let's imagine that you want to know why the leaves on the tree in your front yard change color in
the fall. First, you would research this phenomenon. You observe what you see happen and read
about the subject. You discover that the color change happens when the temperature cools. What
question does this information make you ask?

18

You come up with the following question: Does temperature cause the leaves to change color on
the tree in my front yard? Next, you ask yourself if this can be tested. If it can be tested, you will
write a hypothesis that states what you expect to find. Your hypothesis could be, 'If lower
temperatures cause leaves to change color, and the temperature surrounding a tree is decreased,
then the leaves will change color'.
A hypothesis is an educated guess or proposition that attempts to explain a set of facts or natural
phenomenon. It is used mostly in the field of science, where the scientific method is used to test
it.
Testing Hypothesis vs. Tested Hypothesis
An hypothesis can be testing a concept or it can be developed as a result of study:

A testing hypothesis is one that can be tested, meaning you can measure both what is
being done (variables) and the outcome.

A tested hypothesis is tested with research, such as in a research study in social science.

Here are some examples of both testing hypotheses and hypotheses tested with research:
Testing Hypotheses

If the water faucet is opened, then the amount of water flowing will increase.

If fenders are placed on a bicycle, then the user will stay dry when going through
puddles.

If a prisoner learns a work skill while in jail, then he is less likely to commit a crime
when he is released.

If I raise the temperature of a cup of water, then the amount of sugar that can be dissolved
in it will be increased.

If the size of the molecules is related to the rate of diffusion as they pass through a
membrane, then smaller molecules will flow through at a higher rate.

If there is a relation between the wave length of light and the photosynthesis rate, then
light of different colors will cause the plant to make different amounts of oxygen.
19

If temperature is related to the rate of metabolism in animals, then raising the ambient
temperature will cause an increase in animal metabolism.

Tested Hypotheses

More students get sick during the final week of testing that at other times.

One solar panel can replace one C battery.

There is a positive correlation between the availability of hours for work and the
productivity of employees.

Worker satisfaction increases worker productivity.

Amount of sun exposure will increase the growth of a tomato plant.

Childhood obesity is tied to the amount of sugary drinks injested daily.

A dog can be trained to alert a human if the telephone is ringing.

Basics about Hypotheses

The two types of hypotheses are scientific and working.

A scientific hypothesis is based on experiments and observations from the past that
cannot be explained with current theories.

A working hypothesis is one that is widely accepted and becomes the basis of further
experimentation.

Goal of a Hypothesis
Regardless of the type of hypothesis, the goal of a hypothesis is to help explain the focus and
direction of the experiment or research. As such, a hypothesis will:

State the purpose of the research

Identify what variables are used

Parameters of a Good Hypothesis

In order to be a good hypothesis that can be tested or studied, a hypothesis:

20

Needs to be logical

Must use precise language

Should be testable with research or experimentation

A hypothesis is usually written in a form where it proposes that if something is done, then
something else will occur.
Comparing Hypothesis, Law, and Theory
There are three types of scientific statements:

Hypothesis

Law

Theory

A hypothesis will give a plausible explanation that will be tested. It can also explain future
phenomenon that will need to be tested.
Once a hypothesis has been widely accepted, it is called a law. This means that it is assumed to
be true and will predict the outcome of certain conditions or experiments. Some laws cannot yet
be proven because technology to test them has not been invented.
A scientific theory is broader in scope and explains more events that a law. After hypotheses and
laws have been tested many times, with accurate results, they become theories.
As mentioned previously, a hypothesis is a tool of quantitative studies.It is a tentative and formal
prediction about the relationship between two or more variables in the population being studied,
and the hypothesis translates the research question into a prediction of expected outcomes.Soa
hypothesis is a statement about the relationship between two or more variables that we set out to
prove or disprove in our research. study.

Q.3 Discuss the types of hypothesis

Null Hypothesis
21

This is the conventional approach to making a prediction. It involves a statement that

says there is no relationship between two groups that the researcher compares on a certain
variable. The hypothesis also may state that there is no significant difference when different
groups are compared with respect to a particular variable. For example, There is no difference
in the academic performance of high school students who participate in extracurricular activities
and those who do not participate in such activities is a null hypothesis. In many cases, the
purpose of a null hypothesis is to allow the experimental results to contradict the hypothesis and
prove the point that there is a definite relationship.
Nondirectional Hypothesis

Certain hypothesis statements convey a relationship between the variables that the
researcher compares, but do not specify the exact nature of this relationship. This form of
hypothesis is used in studies where there is no sufficient past research on which to base a
prediction. Continuing with the same example, a nondirectional hypothesis would read, The
academic performance of high school students is related to their participation in extracurricular
activities.
Directional Hypothesis

This type of hypothesis suggests the outcome the investigator expects at the end of the
study. Scientific journal articles generally use this form of hypothesis. The investigator bases this
hypothesis on the trends apparent from previous research on this topic. Considering the previous
example, a researcher may state the hypothesis as, High school students who participate in
extracurricular activities have a lower GPA than those who do not participate in such activities.
Such hypotheses provide a definite direction to the prediction.
Causal Hypothesis

Some studies involve a measurement of the degree of influence of one variable on

another. In such cases, the researcher states the hypothesis in terms of the effect of variations in a
particular factor on another factor. This causal hypothesis is said to be bivariate because it
specifies two aspects -- the cause and the effect. For the example mentioned, the causal
22

hypothesis will state, High school students who participate in extracurricular activities spend
less time studying which leads to a lower GPA. When verifying such hypotheses, the researcher
needs to use statistical techniques to demonstrate the presence of a relationship between the
cause and effect. Such hypotheses also need the researcher to rule out the possibility that the
effect is a result of a cause other than what the study has examined.

Q.4 Describe the sources of developing hypothesis.

Scientific research is a systematic way of gathering data and harnessing curiosity. This research
provides scientific information and theories for the explanation of the nature and the properties
of the world. It makes practical applications possible. Scientific research is funded by public
authorities, by charitable organizations and by private groups, including many companies.
Scientific research can be subdivided into different classifications according to their academic
and application disciplines. Scientific research is a widely used criterion for judging the standing
of an academic institution, such as business schools, but some argue that such is an inaccurate
assessment of the institution, because the quality of research does not tell about the quality of
teaching (these do not necessarily correlate totally).
Research in the humanities involves different methods such as for example hermeneutics and
semiotics, and a different, more relativist epistemology. Humanities scholars usually do not
search for the ultimate correct answer to a question, but instead explore the issues and details that
surround it. Context is always important, and context can be social, historical, political, cultural
or ethnic. An example of research in the humanities is historical research, which is embodied in
historical method. Historians use primary sources and other evidence to systematically
investigate a topic, and then to write histories in the form of accounts of the past.
Artistic research, also seen as 'practice-based research', can take form when creative works are
considered both the research and the object of research itself. It is the debatable body of thought
which offers an alternative to purely scientific methods in research in its search for knowledge
and truth.

23

Q.5.Explain research methodology, research methods and techniques?

Methods which are used by the researcher during the course of studying the research problem
are termed as research methods. Since the object of research, particularly the applied research,
it to arrive at a solution for a given problem, the available data and the unknown aspects of the
problem have to be related to each other to make a solution possible. Keeping this in view,
research methods can be put into following three groups:
1. In the first group we include those methods which are concerned with the collection of data.
These methods will be used where the data already available are not sufficient to arrive at the
required solution;
2. The second group consist of those statistical techniques which are used for establishing
relationship between the data and the unknowns;
3. The third group consists of those methods which are used to evaluate the accuracy of the
result obtained.
Research methods falling in the above last two groups are generally taken as the analytical tools
of research. Research methodology is a way to systematically solve the research problem.
Research needs to undertake the assumptions underlying various techniques and they need to
know the criteria by which they can decide that certain techniques and procedures will be
applicable to certain problems and others will not.
When we talk of research methodology we not only talk of the research methods but also
consider the logic behind the methods we use in the context of our research study and explain
why we are using a particular method or technique and why we are not using others so that
the research results are capable of being evaluated either by the researcher himself or by
others.

Type
1. Library research.

Methods
Analysis

of

Techniques
historical Recording of notes, content

research.
ii) Analysis of documents.

analysis, tape and film

listening and analysis.
Statistical complications and
24

manipulations,
and
2. Field research.

reference

abstract

guides,

Non-participant

content analysis.
direct Observational
behavioral

observation.

scale, use of score card,

ii) Participant observation.

etc.
Interactional
possible

recording,
use

of

tape

recorders, photo graphic

iii) Mass observation.

techniques.
Recording mass observation,
interview

using

independent observers in
iv) Mail questionnaire.

public places.
Identification of social and
economic background of

v) Opinionnaire.

respondents.
Use of attitude

scale,

projective techniques, use

vi) Personal interview

of sociometric scale.
Interviewer uses detailed
schedule with open and

vii) Focused interview

closed questions.
Interviewer focuses attention
upon given experience and

viii) Group interview

it effects.
Small group of respondents
are

ix) Telephone survey

interviewed

simultaneously.
Used as a survey technique
for information and for
discerning opinion; may
also be used as a follow up
of questionnaire.
25

x) Case study and life history

Cross selection collection of

data for intensive analysis,
longitudinal collection of

3. Laboratory research.

data of intensive character.

Small group study of random Use of audio-video recording
behavior, play and role

devices, use of observers,

analysis.

etc.

Q.6. Explain scientific research and its requisites

The philosophy common to all research methods and techniques, although they may vary
considerably from one science to another, is usually given the name of scientific method. In
this context, Karl Pearson writes, the scientific method is one and same in the branches and
that method is method of all logically trained minds the unity of all sciences consist alone
in its method, not its material; the man who classifies the facts of any kind whatever, who sees
their mutual relation and describes their sequences, is applying the Scientific Method and is a
man of science. Scientific method is the pursuit of truth as determine by logical
considerations. The ideal of science is to achieve a systematic interrelation of facts. Scientific
method attempts to achieve this ideal by experimentation, observation, logical arguments
from accepted postulates and a combination of these three in varying propositions. In
scientific method, logic aids in formulating propositions explicitly and accurately so that their
possible alternative becomes clear. The scientific method encourages a rigorous impersonal
mode of procedure dedicated by the demand of logic and objective procedure.
Requisites of good scientific method are as follows:
1. Careful and logical analysis of problem-separating its elements and formulating hypotheses.
The problem should be carefully studied by following the universally accepted procedure.
Then analysis should be carried out after studying the problem carefully. After analysis of the
problem all its elements should be separated and hypotheses should be made from the
analysis.
2. Unequivocal definition of terms and concepts, this means all terms and concepts in the
research should be given in easy language so everyone can understand its correct meaning.
26

3. Collection of data pertinent to problem. All the data collected should be related to the problem
and no other data should be collected.
4. After collecting the relevant data to the problem it should be classified. Classification of data
helps to get solution in easy and quick manner. Data can be classified in qualitative and
quantitative terms.
5. The data referred for research in scientific method should be expressed in quantitative terms.
6. To get exact and accurate solution to the problem rigorous experiments should be conducted.
This will help researcher to know not only the solution to the problem but also will help to
know the hurdles or other problems so he can solve other problems in research easily.
7. The reason found out of the problem should be sound and logical. It should be universally
accepted.
8. Scientific method of research has steps and procedures which help to get exact solution or
conclusion to the problem. The method chose by the researcher should be universally
accepted.
9. Complete elimination of personal equation that means the researcher should be unbiased
while conducting his research. The researches can me rejected if the researcher is found bias.
The report should be self-explanatory so that anyone can understand easily without any problem.
The reports should be a comprehensive

CHAPTER 3
FINANCIAL ANALYSIS OF BOSCH LTD

27

About the company

Founded in 1951, Bosch Limited (Bosch or the Company) is Indias leading supplier of
technology and services in the areas of automotive and industrial technology, consumer goods
and building technology. Additionally, the Company also has the largest development centre,
outside Germany, for end to end engineering and technology solutions.
It is the flagship Company of the Bosch Group. The Bosch Group holds 71.18% stake in Bosch
Limited. The Company is headquartered in Bangalore with manufacturing facilities at Bangalore,
Naganathapura (near Bangalore), Nashik, Jaipur and Goa.
Its Automotive Technology division includes Diesel and Gasoline Fuel Injection Systems, Car
Multimedia Systems, Auto Electricals and Accessories, Starters and Generators, Energy and
Body Systems. Its Industrial Technology division includes Packaging Machines, Special Purpose
Machines, Solar Energy and its consumer goods and building Technology division includes
power tools, security system.

KEY FINANCIAL FIGURES

28

P/L
Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock
Adjustments
Total Income

FY 15

FY 13

FY 12

FY 11

FY 10

12,903.50

9,515.00

9,374.10

8,769.50

7,149.69

818

694.9

715

603.7

441.67

12,085.50
537.3

8,820.10
352.6

8,659.10
369.2

8,165.80
320.3

6,708.02
224.41

66.9

132.9

-56

209.8

194.77

12,689.70

9,305.60

8,972.30

8,695.90

7,127.20

6,825.70

5,158.10

4,931.50

4,815.20

3,976.31

131.7

107

108.5

101

86.54

1,663.10

1,191.20

1,037.10

896.1

802.47

206.94

635.94

1,550.60

1,205.60

1,176.50

1,051.40

149.4

-34.16

10,171.10

7,661.90

7,253.60

6,863.70

5,823.44

Expenditure
Raw Materials
Power & Fuel
Cost
Employee Cost
Other
Manufacturing
Expenses
Selling and
Admin
Expenses
Miscellaneous
Expenses
Preoperative
Exp
Capitalised
Total Expenses

Column1
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written

FY2015
FY2013
FY2012
FY2011
FY2010
1,981.30
1,291.10
1,349.50
1,511.90
1,079.35
2,518.60
14.3
2,504.30
548.4

1,643.70
2.9
1,640.80
384.2

1,718.70
5.5
1,713.20
367

1,832.20
0.4
1,831.80
257.8

1,303.76
3.93
1,299.83
253.97

0
29

Off
Profit Before
Tax

1,955.90

1,256.60

1,346.20

1,574.00

1,045.86

162.6

PBT (Post
Extra-ord Items)

1,955.90

1,256.60

1,346.20

1,574.00

1,208.46

Tax
Reported Net
Profit

618.2
1,337.70

371.9
884.7

387.9
958.3

451.3
1,122.70

349.2
858.91

Extra-ordinary
items

PROFITABILTIY ANALYSIS
Particulars

FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

Operating Profit Margin Ratio

16.09

18.51

15.58

14.64

16.39

Net Profit Margin Ratio

12.40

13.74

11.06

10.03

11.07

Operating profit margin is a measurement of the proportion of a companys revenue that is left
over after paying for production costs such as raw materials, salaries and administrative costs.
Net profit margin is arrived at by deducting non-operating expenses such as depreciation, finance
costs and taxes out of operating profit and shows what is left for the shareholders as a percentage
of net sales. Together these ratios help in understanding the cost and profit structure of the firm
and analyzing business inefficiencies.

SOURCES OF FUNDS

30

Sources Of Funds 2015

Total
Share 31.4

2013
31.4

2012
31.4

2011
31.4

2010
31.4

Capital
Equity

31.4

31.4

31.4

31.4

Capital
Share Application 0

Money
Preference Share 0

Capital
Reserves
Networth
Secured Loans

7,315.60
7,347.00
1.3

6,262.90
6,294.30
2.7

5,541.90
5,573.30
3.7

4,697.00
4,728.40
18.1

4,066.64
4,098.04
3.04

Unsecured Loans

54.2

128.9

181.3

227.3

273.35

Total Debt
Total Liabilities

55.5
7,402.50

131.6
6,425.90

185
5,758.30

245.4
4,973.80

276.39
4,374.43

Share 31.4

APPLICATION OF FUNDS
Application Of Funds
Gross Block
Less:

2015
4,784.20
0

2013
4,303.60
0

2012
3,941.40
0

2011
3,358.40
0

2010
3,023.80
0

Accum. 3,816.60

3,365.50

3,078.10

2,766.70

2,587.81

938.1

863.3

591.7

435.99

456.8

408.3

320.7

224.22

2,185.10
1,207.20
1,073.50
1,441.50

1,528.60
1,095.70
1,027.00
1,487.20

1,634.70
1,183.10
895.9
951.5

1,607.30
809.28
720.97
38.87

Revaluation

Reserves
Less:
Depreciation

967.6
Net Block
Capital
Work

in 276

Progress
Investments
Inventories
Sundry Debtors
Cash
and
Bank

2,889.60
1,276.20
1,187.70
1,896.00

Balance

31

Total Current Assets

4,359.90
3,722.20
Year
Rate of dividend (of R
Loans and Advances
1,937.70
1,619.00
face value)
Fixed
Deposits 250 % 0
0 25.00
FY
2008
Total
& 6,297.60
5,341.20
FY
2009CA, Loans
300 %
30.00
FY
2010
400 %
40.00
Advances
FY
2011 Credit 1,350 % 0
Deferred
0 135.00
FY
2012
600
%
60.00
Current Liabilities
1,711.10
1,770.40
FY 2013
550 %
55.00

3,609.90
3,030.50
1,569.12
Closing
Date*
1,492.10
1,553.40
1,114.17
price*
0
1,287.00
3,051.450
07 May
2009
5,102.00
3,970.29
4,979.304,583.90 13 May
2010
6,758.65
12 May 2011
9,005.900
11 May
0
0 2012
9,012.10
10
May
2013
1,419.00
1,588.90
1,337.05
10,588.95
12 May 2014

EFFICIENCY ANALYSIS

Return on Capital Employed (ROCE) measures a companys profitability from its overall
operations by calculating the return generated on the total capital invested in the business (i.e.
Particulars

FY 2010

FY 2011

FY 2012

FY 2013

FY 2015

ROCE
ROE / RONW

23.76
20.95

31.65
23.74

23.47
17.19

19.60
14.06

26.99
18.21

equity + debt). Return on Equity (ROE) or Return on Net worth (RONW) measures the amount
of profit which the company generates on money invested by the equity shareholders. In short,
ROE draws attention to the return generated by the shareholders on their investment in the
business. Together these ratios can be used in comparing the profitability of the company with
other companies in the same industry
DIVIDEND HISTORY

Liquidity and Credit Analysis

32

Current Ratio
Higher current ratio implies healthier short term liquidity comfort level. A current ratio below 1
indicates that the company may not be able to meet its obligations in the short run. However, it is
not always a matter of worry if this ratio temporarily falls below 1 as many times companies
squeeze out short term cash sources to achieve a capital intensive plan with a longer term
outlook. Boschs average current ratio over the last year has been 2.08 times which indicates that
the Company has been maintaining sufficient cash to meet its short term obligations.
Long Term Debt to Equity Ratio
Companies operating with high debt to equity on their balance sheets are vulnerable to economic
cycles. In times of slowdown in economy, companies with high levels of debt find it increasingly
difficult to service the interest on their borrowings as profit margins decline. We believe that long
term debt to equity ratio higher than 0.6 - 0.8 could affect the business of a company and its
results of operations.
Boschs average long term debt to equity ratio over the last year has been 0.01 which indicates
that the Company is operating with a low level of debt.
Interest Coverage ratio
Interest coverage ratio indicates the comfort with which the company may be able to service the
interest expense (i.e. finance charges) on its outstanding debt. Higher interest coverage ratio
indicates that the company can easily meet the interest expense pertaining to its debt obligations.
In our view, interest coverage ratio of below 1.5 should raise doubts about the companys ability
to meet the expenses on its borrowings. Interest coverage ratio below 1 indicates that the
company is just not generating enough to service its debt obligations.

33

Boschs average interest coverage ratio over the last year has been 138.67 times which indicates
that the Company has been generating enough for the shareholders after servicing its debt
obligations.
CALCULATIONS OF THE RATIOS

CURRENT RATIO

DEBT EQUITY RATIO

OPERATING PROFIT
MARGIN
NET PROFIT RATIO
RETURN ON CAPITAL
EMPLOYED
RETURN ON EQUITY
CAPITAL
INTEREST COVERAGE
RATIO

CURRENT
ASSETS/CURRENT
LIABLITIES
BORROWED
FUNDS/PROPRIETORS
FUNDS
OPERATING NP/NET
SALES *100
NET PROFIT/NET SALES
*100
PBIT/CE*100

6297.60/3028.30=2.08

NPAT/EQ SHARE
+RESERVES *100

13377/7347*100=18.21%

PBIT/INTEREST

1983/14.30=138.67

7402/7347=0.01

1981.30/12085.5=16.39%
1337.70/1208.50*100=11.06%
1983/7347*100=26.99%

Ownership pattern
(%)
Shareholding

Mar-10

Mar-11

Mar-12

Mar-13

Promoter
FIIs
DIIs
Others

71.18
5.18
14.96
8.68

71.18
4.97
13.95
9.9

71.18
6.06
12.71
10.05

71.18
6.91
11.62
10.29

In its latest stock exchange filing dated 31 March 2015, Bosch reported a promoter holding of
71.18 %. Large promoter holding indicates conviction and sincerity of the promoters. We believe
that a greater than 35 % promoter holding offers safety to the retail investors.

34

At the same time, institutional holding in the Company stood at 19.79 % (FII+DII). Large
institutional holding indicates the confidence of seasoned investors. At the same time, it can also
lead to high volatility in the stock price as institutions buy and sell larger stakes than retail
participants.

CHAPTER 4
BIBLIOGRAPHY

BOOKS REFERRED TO:

Research Methodology By C.R.. Kothari

WEBSITES REFERRED TO:

www.moneycontrol.com
http://www.boschindia.com

35