Structured Observation As a Research Tool in the Banking Organisation - Case Study Example

Research Methods Research and Professional Conduct in Business Introduction: I am the Executive Manager of the major banking company Barclays Bank. The Bank is intending to carry out a research study on service quality and customers’ face-to-face experiences in our bank. In this study, strength and weaknesses of the research methods of structured observation, mystery/secret shopping and research based on video-analysis are discussed in order to identify the effectiveness of each of these methods to produce accurate and reliable results for the organisation. Strengths and weaknesses of different research models: Structured observation: Structured observation is the systematic method for observing the people’s behaviour. Data collection is done independently without considering the reports or inference of other research studies relating to the subject. It is alternative to survey method. The research method of structured observation was presented by Mintzberg in 1973. In his book “the nature of managerial work’, he states that “observation could result not only in increased site specific knowledge, but also in hard data on various aspects of work.” (Chapter One Structured Observation the Nature of Investigation: Reasons for the Choice of Observation as a Research Method). In this model, the researcher is required to involve in a social settings for observing the activities closely. The structure of observation depends on the aims and objectives of the proposed research. Interviews or self-completed questionnaire is adoptable for collecting data in research focused on identifying the social behaviour. The observation model would help to reveal un-reported information relating to the research topics. It would assist the research workers to get informed about the practices and context of research topics. (Chapter One Structured Observation the Nature of Investigation). Appropriate performing of structured observation should act as excellent method of collecting data. This facilitates the observation of many more subjects. Data analysis also becomes effortless. In case of checklist the degree of occurrence of a particular behaviour occurred is only taken for the data analysis. Structured observation is adoptable for research requiring précised measurements. The structure must be framed with the needs of the research study and the nature of information needed. It should be highly structured by applying extensive knowledge about the variable. The degree of structure of the observatory data depends on the level and extent of the research study. Supportive theoretical background for explaining the action of the variables also will affect the degree of structure. (Intro to Research Methods: Degree of Structure). A structured observation would help to procure the needed information in adequate manner. The most common form of structured observation is checklist. “A checklist allows the researcher to record whether or not a given behaviour occurs. The desired behaviours must be explicitly defined so that there is no question in the mind of the observer as to whether or not they occur.” (Intro to Research Methods: Degree of Structure). Ability of the observer to record the information adequately and precisely should affect the accuracy of the research results based on structured observation. In case of complex events full summaries shall be required. For transferring of information adequate grasp in local terminology is required. The observer is required to understand the focused objectives of the research study. Weaknesses of structured observation model: The major criticism on structured observation is that it is difficult to understand without engaging in actual process. Incomplete access to an information exchange is a common problem that affects the structured observation. Issue of reliability and validity is another problem. The reliability and validity of the results of the research depends on the consistency of the observer and implementation of schedule without error. The ability of the researcher to select the appropriate research model shall be the deciding factor in the reliability of the results. The major criticism on this method is that it ignores the inner meanings and intentions of behaviour. In this study the motivational forces behind behaviour are not investigated. The awareness among the participants of the research study can make changes in their behaviour. It is more accurate and reliable than interviews and questionnaires. (Structured observation, Chapter 6). Improper and irrelevant structure framework is another factor that affects the research results. Direct observation behaviour fails to consider the intention behind behaviour. (Bryman and Bell 2007, p.297). Video Analysis based research studies: Video analysis based research studies are of different types. In this method, data collection is conducted through video recording. The collected video clips are required to be annotated with comments. “In this method, the observer has the ability to improve performance by letting them to select clips from streamed video activities, and associate comments with those clips.” (Dyer 2009). In behaviour observation research, application of video analysis should help to derive proper conclusion regarding the behavioural data. Qualitative data collection would be better facilitated through video analysis. (Koch and Zumbach 2002). “The recording of all modes of interaction between the helps to obtain a complete record of behaviour enabled the researcher to investigate a variety of research questions.” (Coleman 2000, p.422-427).Real life consumer behaviour can be gathered through video observation. It is an effective way for gathering data and behaviour of all customers can be gathered. Weaknesses of video analysis: Due to the sensitive nature of the work environment, the accuracy and reliability of video based research analysis can be affected. When compared to other methods, it is expensive in nature. The data gathering from video analysis is a complex process. “All sequences of interest for the analysis then need to be digitalized. In order to code single behaviours a behaviour coding scheme needs to be developed and transformed.” (Koch and Zumbach 2002). Internal validity of research results depends on the degree of bias. In the presence of video the behaviour of the customers may be influenced and thus observed results may be biased. It restricts the normal behaviour of individuals. (Coleman 2000, p.422-427). Mystery shopping: Mystery shopping is the process of collecting information concerning a particular business using a stranger. The mystery/secret shoppers often take delivery of products in order to get a precise outline of customers’ satisfaction. The Market Research Society identifies mystery shopping and mystery customer research as measuring of customer service processes by an individual, who acting as a customer, has potential for submitting a report of his experience in detail. Mystery shopping through phone, internet and direct in the store are the diverse forms of mystery shopping. All these methods demand an outsider to be active. A good mystery shopping company should be significant, believable, realistic, providing security and objective. It ensures that the reports are built according to the circumstances. Mystery shoppers should be aware of the interests of the customers as far as possible. Developments of the reports must be clear-cut and brief, and not confusing. It must be sufficient enough to pass the right information. The mystery shoppers are to be assured about their security while performing their duty. Gathering accurate information by observing must be the first and foremost principle of mystery shopping rather than the personal experience of a mystery shopper. It is important that the shopper must be asked about what had happened at the spot of contact. For a service delivery division mystery shopping is necessary and helps in bringing appreciative and attractive quality of service. If any additional action is required it should be added by the organisation by taking initiatives and reviews of their up-to-date reports which in turn increases the effectiveness of the company. If the owner is on the site the workers may not act righteously; so mystery shopping is suitable for the better evaluation at the spot. It lets the owners to get a view of the circumstance by setting aside a neutral third person to scrutinize the condition who would pick up significant information regarding their business and polish up as required. Mystery shopping promotes more responsibility on employees, and helps them to be sincere always throughout the process. This method allows the owner to know whether the employees are able to meet the standards, and whether standards are exactly articulated. Many employees are scared of the off-putting information regarding their performance. Notify the employees that they are awarded with another chance to prove their performance. Focus only on the positive reports if the negative ones are going to be discussed and which will create a bad impression on the employees. Feel that the negative points are the chances to improve the quality and meet the customer satisfaction in a better way next time. (Mystery Shopping Providers Association Mystery Shopper Q & A). HSBC is a major banking and financial services organisation in London. The bank adopted the structured observation model for conducting research among the customers for identifying their behaviour. It states that generative research methods are adoptable for detaining the human behavioural pattern in different interactive situations. It can be applied in research focusing on identifying the requirements of users in product and services. “These methods are extremely useful for uncovering and identifying emerging and unmet customer needs with the goal of defining product opportunities.” (Generative User Research: What it is). Conclusion: Structured observation as a research tool in the banking organisation: The research tool that I propose for the research focusing on identification of service quality and customers’ experience is structured observation. In the research on customer relations in bank, the research is focused on overt behaviour, where inner meanings are not important and thus structured observation is the most suitable method. The video analysis and mystery shopping methods have their own limitations for identifying the customer relation in banking institution. In the presence of a video recording the behaviour of the employees will not be natural or un-biased and thus the results on such observation will not be accurate or reliable. Mystery shopping research technique is not adoptable as it is not the best way to identify the customer relations in the banking organisation. It provides only a snap shot of the service process in the entire organisation and is not fully representative. Only review of the processes is considered and its outcomes are not analysed. In these situations, the structured observation is the suitable research method adoptable for the research on the customer service quality and customer face-to-face interaction in the Barclays Bank. Bibliography BRYMAN, Alam., and BELL, Emma. (2007). Criticisms of Structured Observation. [online]. Business Research Methods. P.297. Last accessed 03 March 2009 at: http://books.google.co.in/books?id=FRZ_HSkldV0C&pg=PA298&lpg=PA298&dq=structured+observation+limitations&source=bl&ots=BjQed8bPFZ&sig=bFw5wiNsb-ARD889EvbsFUyZ4GE&hl=en&ei=wIyrSZHjOtXRkAXDr8HiDQ&sa=X&oi=book_result&resnum=9&ct=result#PPA297,M1 Chapter One Structured Observation the Nature of Investigation. [online]. Last accessed 03 March 2009 at: http://informationr.net/tdw/publ/INISS/Chap1.html Chapter One Structured Observation the Nature of Investigation: Reasons for the Choice of Observation as a Research Method. [online]. Last accessed 03 March 2009 at: http://informationr.net/tdw/publ/INISS/Chap1.html COLEMAN, Tim. 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