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60 THE RESEARCH PROCESS

6. Interdependent relationships with other institutions and the external envi-
ronment.
7. Financial position during the previous 5 to 10 years, and relevant financial data.

Information gathered on the foregoing aspects will be useful in talking knowl-
edgeably with others in the company during the interview and raising the appro-
priate issues related to the problem. As an example, the problem of cash flow
(which can be gleaned from the balance sheets) may be related to poor quality
of raw materials purchased, resulting in a high rate of return of goods sold by
the company. This issue can be tactfully investigated during the course of the
discussions with the appropriate members in the system if this information is
known in advance. Or an industry analysis might reveal that some of the prob-
lems encountered are not unique to this company but are faced industrywide,
such as competition from foreign producers, consumer resistance to spending
money, and the like. In such a case, more questions can be focused toward
strategies (such as sales and advertising efforts) developed by the company to
promote sales in the face of foreign competition.

Information on Structural Factors and Management Philosophy
Information on company policies, structure, workflow, management philosophy,
and the like can be obtained by asking direct questions of the management.
When questions are directed at several managers individually, it is quite possible
that some of the responses will be conflicting and contradictory. Frequent
instances of such contradictions might in themselves indicate problems such as
poor communication or misperceptions by members of the organization’s phi-
losophy, goals, values, and so forth. These issues can be pursued by the
researcher in subsequent interviews to obtain an idea of the extent to which dif-
ferences in perceptions exist in the organization.
Such information gathering would be particularly useful when newly
installed systems, processes, and procedures do not produce the desired
results. The failure of many new technologies, well-meant benefit policies,
strategic plans, or marketing or production practices is often due to misun-
derstandings and misperceptions of the cherished goals and motives of top
administration rather than any inherent faults in the mechanisms themselves.
Once the misperceptions are cleared, the problem might well disappear.
Hence, it is useful to gauge the extent to which perceptual and communica-
tions problems exist, right at the start.
Questioning about managerial and company philosophy offers an excellent
idea of the priorities and values of the company, as for example: (1) whether
product quality is really deemed important by the company or if only lip service
is being paid to the concept; (2) whether the company has short-term or long-
term goals; (3) whether controls are so tight that creativity is stifled, or so loose
that nothing gets done, or if they are conductive to good performance; (4)
whether the company always wants to play it safe or is prepared to take calcu-
lated risks; and (5) whether it is people-oriented or solely profits-oriented.