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EVALUATING FACTORS RESPONSIBLE FOR FAILURE OF AN ORGANIZATION

RESEARCH METHODOLOGY By INDIAFORU 1.1 Research Paradigm


Every business has to go through peaks as well as troughs but the effects of depression on the profitability can be avoided by proper research and timely actions. In this case study we are attempting to know the causes for the non performance of XYZ Inc., an Indian IT company. For reaching this objective it is important to choose an appropriate research methodology and design. Dr. Pattron (2009) defined research methodology as a highly intellectual human activity used in the investigation of nature and matter and deals specifically with the manner in which data is collected, analysed and interpreted.

Broadly, there are two approaches to inquiry: The structured approach which is all known as quantitative research and un-structured approach known as qualitative research (Kumar, 2005).Here a qualitative approach will be used because it makes feasible to collect thorough knowledge about the means and effects of information contributed in the governance of an IT company. Putting in Brynams (1992), a qualitative research would allow wider range of possibilities to be explored. As a next logical step, a combination of literature reviews and previous case
Review the Literature Accumulate Data Define Research Problem Evaluate Data Interpret and Report

studies on XYZ Inc., will be used in comparison with the present data

available for XYZ Inc.,, which will help in investigating and reaching at a new
Create Hypothesis Research Design

Figure 1: Research Methodology

hypothesis in support of reasons liable for an abridged output and closure of an IT company. A case study, which is an in-depth examination of one person, is a form of qualitative research. Qualitative research is often used as a source of hypotheses for later testing in quantitative research (Marczyk et al., 2005).

1.2 Research Approach


The research design sets out the logic of case study inquiry. It should include the following: the study design per se and the logical arrangements that are proposed to undertake, the measurement procedures, the sample strategy, the frame of analysis and time frame (Kumar, 2005). Qualitative approach has been intended for this case study as a primary research technique and the information gathered under this approach will be translated into quantitative figures for statistical analysis to accumulate a more systematic and organised view on the subject.

An in-depth study is required for identifying the internal and external reasons for the non-performance of XYZ Inc. which entails meticulous exploration about all the facets of organisations operations. By keeping this goal in mind an action research would be conducted combined with survey based research using interview technique and literature reviews for cramming all the related components of organisation which influence the working of IT sector.

Action Research
According to McTherte, Action research is organised, investigative activity, aimed towards the study and constructive change of given endeavour by individual or group concerned with change and improvement. The characteristics of the action research are enumerated as follows: 1) It is a process for studying practical problem. 2) It is a scientific procedure for finding out a practical solution for current problem. 3) The practitioners can only study his problems. 4) To improve and modify the current practices.

5) The individual and group problem is studied by action research (Singh, 2006)

Considering the above characteristics of action research, it can be implied that action research method perfectly suits the research objectives in the present case study. Action research begins with a process of communication and agreement between people wants to change something together (Dawson, 2009). The implementation of action research in the present perspective would take the form of a questionnaire which can be used to draw the personal opinion of the employees regarding the possible reasons for the companys closure.

Interview Technique
This is one of the primary data collection methods which involve presentation of oralverbal stimuli and reply in terms of oral-verbal responses (Kothari, 2004).This technique will be reinforce with the help of an questionnaire as it is regarded a form of interview on paper (Singh, 2006). A questionnaire will be drawn and presented to employees personally or through email.

Literature Review
The researcher must examine all the available literature to get acquainted with the selected problem. He may review two types of literature the conceptual literature concerning the concepts and theories, and the empirical literature consisting of studies made earlier which are similar to one proposed. The basic outcome of the review will be the knowledge as to what data and other materials are available for operational purpose which will enable the researcher to specify his/her own research problem in a meaningful context (Kothari, 2004)

According to Marczyk the well-designed studies will prove useless if inappropriate measurement strategies are used in the data collection stage. To make this case study more effective and meaningful, primarily a general questionnaire will be drawn for collecting the views of the majority stakeholders regarding the reasons for the

closure of the XYZ Inc. which will be further calculated statistically for identifying the factors responsible with regards to the members opinion.

Technique: Questionnaires will be the main method used for collecting the data. Questionnaires will be circulates using convenience sampling to the employees at different levels of the hierarchy in the organisation.

The questionnaire Appendix I shows the sample of the questionnaire that will be used for performing research on the overall practices of XYZ Inc.. It consists of identification of organisations objectives and there awareness among the different levels of the hierarchy. It also consists of questions relating to the McKinsey 7S framework model consisting of strategy, structure, system, staff, style, skill, shared values and PESTEL factors.

Questionnaire Overview The questionnaire has been divided into 5 sections along with an Introduction and conclusive part, as follows:

Introduction: It consists of the questions regarding personal information of the interviewer and interviewee like asking names of the interviewer and interviewee, enquiring about the job title of the interviewee, level in organisations hierarchy, a statement thanking interviewee for giving their precious time, etc. Section I: It consists of the questions relating to employee awareness of the strategic objective and coupled with that it contains various quality, speed, cost, dependability and flexibility objectives as defined by Nigel Slack.

Section II: In this section questions are asked relating to the internal factors affecting the organisations performance which are based on the McKinsey 7s framework model.

Questions are framed to know the extent to which employees are aware of the objectives of the organisation, structure, strategies followed, style of working, staffing requirements, skills required for carrying organisation. out tasks and shared values by the

Section III: This section contains question on the type of leadership based on Blake and Moutons leadership grid. The answers to this question can be combined with that of style from 7S framework to derive a better leadership perspective.

Section IV: This section consists of the questions relating to external factors affecting the organisations performance base on the PESTEL factors. PESTEL factors helps in seeing a broader picture of the organisations working which in turn helps in taking advantage of the opportunities and minimizing external threats. Questions in this section throw a light on the political, economic, sociological, technological, legal and environmental factors in order to show their impact on the non performance of XYZ Inc.,

Section V: In this section questions will be structured for knowing the effects of competitive advantage on the XYZ Inc. operations. This section highlights whether the power of buyers and suppliers has an impact on the market and industrial competition. It also studies the effects of entry threats and threats of substitutes which demonstrate the major reason accountable for the organisations closure. Conclusive Questions: This concluding section contains the questions to cover up any overlooked information or any advice or any extra feedback interviewee is interesting in sharing. It also asks the questions for rating the impact of 7S framework factor, PESTEL factors and Competitive forces which in turn will help in carrying out impact analysis for recognizing the impact they have made on the XYZ Inc. non performance.

1.3 Sampling Technique


The research work cannot be undertaken without use of sampling. The sample of the study will be representative of the population. The study of the total population is not possible and it is also impracticable (Singh, 2006). So, the present study has adopted convenience sampling technique. According to Kothari, when population elements are selected for inclusion in the sample based on the ease of access, it can be called as convenience sampling. In the present scenario, XYZ Inc. Company consists of a team of 600 employees out of which minimum of 20 employees or maximum of 50 employees will be selected for collecting data. For this case study a sample size of 20 employees from all levels of management have been taken because of the time constraint. An average of this sample size will be taken out in order to generalise the outcomes to the entire research group. Data Presentation

1.4 Data Presentation


Data presentation is used to depict the information gathered statistically. There are many ways of presenting a data like charts, graphs, tables, etc. For this case study a tabular form of data presentation will be used combined with bar graphs or histograms which will enable the readers to understand the overall impact of the variables collected. For creating tables and graphs MS Excel will be used and Minitab will be used for generating diagrams.

With the help of MS Excel spreadsheet internal and external variables will be quantified into percentages and then it will be produced in a form of diagram representing cause and effect relationship among the variables which contributed in the non performance of the organisation.

1.5 Ethical Issues Involved


According to Marczyk, et al. (2005), all studies with human participants involve some degree of risk. These risks may range from minor discomfort or embarrassment caused by somewhat intrusive or provocative questions to much more severe effects on participants physical or emotional well being. These risks present researchers with an ethical dilemma.

The ethical concerns generated while collecting data for this case study are as follows: y Reluctant of the interviewees to part with the off the record information relating to sensitive areas like financial information y y y The interviewee must be held with respected and dignity The interviewer must up hold the confidentiality of the collected data The interviewee at the time of interview must be honest and unbiased towards the research subject y There may be a possibility of getting the information altered because of lack of knowledge y There are likelihood that the sources indispensable for the data collection are not accessible

1.6 Summary
The research methodology used in this case study is interview approach. This is done with the help of a questionnaire which is filled by employees from different levels of hierarchy through phone, chat and emails. The questionnaire has been designed in a manner to know the employees views on the objectives, McKinsey 7 S framework and PESTEL factors affecting the overall performance of the organisation and the reasons for its closure. The findings are thus statistically evaluated to know the exact reasons for the underperformance of XYZ Inc.,