DATA AND INFORMATION

Unit 1
Chapter-1
Data and Information
Introduction
By data, we mean known facts that can be recorded and that have impicit meanin!" For e#ampe, consider
the names, teephone n$mbers, and addresses of peope yo$ know" %o$ m$st have recorded this data in an
inde#ed address book, or on a diskette" This is a coection of data with some impicit meanin!"
To sove any mana!eria probem that yo$ face in the or!anisation yo$ need reevant information" This
reevant information has to meet the tests of s$fficiency and acc$racy to be $sef$ to sove the probem in
hand" This information, which is processed form of data, refers to coection of n$mbers, etters, or
symbos, maintained or prod$ced for the mana!ement when re&$ired"
Forms of Data
Data may be cassified as'
(i) *rimary Data
(ii) +econdary Data
Primary Data
*rimary Data represents those items that are coected for the first time and first hand" The data is recorded
as observed or enco$ntered" ,ssentiay, this data is the raw materia and may be combined, or str$ct$red in
any form" The point to be noted here is that the data has not been statisticay processed" For e#ampe, data
obtained by co$ntin! the n$mber of bad pieces and !ood pieces in the prod$ction is the primary
$nprocessed data" After this the data can be statisticay processed to yied the re&$ired information"
The main advanta!es of coectin! primary data are the foowin!'
(i) They are acc$rate and reiabe as they are coected from the ori!ina so$rce"
(ii) They provide detaied information accordin! to re&$irements of the $sers"
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(iii) It is more reiabe and ess prone to error"
(iv) Definitions and meanin! of terms $sed in data are e#pained to make it $nderstandabe and the process
transparent"
(v) Method of coection, its imitations and other aspects are !eneray hi!hi!hted"
/here there are roses there wi aso be thorns" Foowin! are the main imitations of the primary data'
(i) 0ost' It is e#pensive to coect primary data"
(ii) Time' It is time cons$min! method of data coection"
(iii) Trainin!' It re&$ires e#perts1trained personne to coect data"
Secondary Data
This is aso known as p$bished data" Data which is not ori!inay coected b$t rather obtained from
p$bished so$rces and is normay statisticay processed is known as secondary data" For e#ampe, data
p$bished by Reserve Bank of India, Ministry of ,conomic Affairs, 0ommerce Ministry as we as
internationa bodies s$ch as /ord Bank, Asian Deveopment Bank, etc"
As is the case with primary data there are advanta!es and disadvanta!es associated with secondary data
aso" The advanta!es are'
(i) 0ost' It is more economica than primary data, since data is aready avaiabe"
(ii) Time' It is faster to coect and process as time has aready been spent to coect the data"
(iii) Information insi!ht' It provides a base on which f$rther information can be coected to $pdate it and
finay $se it" It provides va$abe insi!hts and conte#t$a famiiarity with the s$b2ect matter"
The imitations of secondary data are as foows'
(i) It may not be too reevant for the probem in hand as it was ori!inay coected for some other
conte#t"
(ii) It co$d be o$tdated and hence not of m$ch $se in a dynamicay chan!in! environment"
(iii) The acc$racy of secondary data as we as its reiabiity wo$d depend on its so$rce as the ass$mption
made d$rin! the data coection are not specified"
(iv) 3ocatin! appropriate so$rce and finay !ettin! access to the data co$d be time cons$min!"
(v) The data avaiabe mi!ht be too e#tensive and a ot of time and money may be spent !oin! thro$!h
it"
Distinction between Primary Data and Secondary Data
Parameter Primary Data Secondary Data
Source of Data Original source Secondary source
Method of Data Collection
Observation method,
Observation method,
Questionnaire method, etc.
Published data from various sources
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DATA AND INFORMATION
Statistical Processing Not Processed Usually rocessed
Originality of Data
Original.
Not original. Data collected by
some
Original.
!irst time collected by user
Not original. Data collected by some other
agency
Use of Data Data is comiled for secific
uroses
"here may not be a secific urose
"erms and Definitions of
Units
#ncororated May not be incororated
Coy of the Schedule #ncluded $%cluded
Method of Data Collection &iven May not be given
Descrition of Samle
Selection
&iven May not be given
"ime 'e(uired More )ess
Cost to the Orgnaisation $%ensive Comaratively cheaer
$fforts Sent More )ess
*ccuracy of Data More accurate )ess accurate
"raining $%erts+trained eole re(uired )ess trained re(uired
On coser investi!ation, it wi be noticed that the distinction between primary and secondary data in many
cases is of de!ree ony" Data, which wo$d be secondary in the hands of one, co$d be primary for others"
For e#ampe, to a bank the detais of the c$stomer are primary data, b$t to a reader of the report of the bank
these detais are secondary"
Chapter-2
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Generation of Data
The proced$re for !eneration or coection of data depends $pon vario$s considerations s$ch as ob2ective,
scope, nat$re of investi!ation, etc" Avaiabiity of reso$rces ike money, time, manpower, etc", aso affect
the choice of a proced$re" Data from a primary so$rce are coected, for the first time, keepin! in view the
ob2ective of investi!ation" +econdary data, on the other hand, are avaiabe from certain p$bications or
reports" +$ch data are aready coected by some other a!ency in the past for some other p$rpose" Th$s, the
primary data !enerated with a specified ob2ective of investi!ation, are ikey to be more reiabe as
compared to secondary data" The $se of secondary data, whenever necessary, m$st be very caref$y" The
cost of !eneration of primary data, however, are m$ch hi!her"
Data Capturing
After the data has been !enerated, it sho$d be capt$red or stored in a medi$m for its $se in f$t$re"
+tora!e technoo!y inc$des both the physica media for storin! data, s$ch as ma!netic or optica desk or
tape, and the software !overnin! the or!ani6ation of data on these physica media"
Collection of Primary Data
Considerations in Selection of Primary Data Study
/hie seectin! the s$b2ect for primary data coection, the foowin! considerations sho$d be kept in
mind'
(i) ,conomic 0onsiderations
(a) Data coection efforts cost money" The va$e of the anticipated res$ts m$st commens$rate with
the efforts p$t in"
(b) +hort7term data coection st$dies that can yied appreciabe dividends &$icky sho$d be
preferred to on! term st$dies whose benefits may be diffic$t to foresee"
(ii) Technica 0onsiderations
(a) It sho$d be made s$re that ade&$ate technica knowed!e is avaiabe to carry o$t the ri!ht
process of data coection"
(b) /here a ar!e probem throws $p a n$mber of s$b2ects which are independent of each other, it is
better to have sma individ$a data coected on each s$b2ect"
(c) /here a probem brin!s to i!ht two or more s$b2ects, which are interreated, independent st$dies
on each mi!ht be carried o$t in the preiminary sta!es, b$t they sho$d ater be contin$o$sy
inte!rated by coordinatin! the recordin! of the different teams workin! on each s$b2ect" The
critica e#amination has to be the competeness of the data and it has to be carried o$t by the
team as a whoe"
(d) The scope and ma!nit$de of the probem wo$d determine the data re&$ired
(iii) 8$man 0onsiderations
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DATA AND INFORMATION
/here resistance to chan!e or reaction is ikey to be there the data coection sho$d not be proceeded
with $nti acceptance has been !ained"
(iv) Other 3imitations and 0onstraints
(a) Time 3imit' Data coection m$st be competed within time frame specified so as to be of
ma#im$m $tiisation"
(b) 0ost 0onsiderations' Data m$st be coected within the cost framework "
(c) Acc$racy' Reasonabe acc$racy, as is re&$ired for the probem, sho$d be ens$red"
Methods of Primary Data Collection
The foowin! fo$r methods of primary data coection are most widey $sed'
:" Observation method
;" *ersona interview
<" =$estionnaire method
>" 0ase st$dy method
3et $s ook at each method, one by one'
1. Observation Method
This is the most commony $sed method of data coection, especiay in st$dies reatin! to
prod$ction mana!ement and behavio$ra sciences" Acc$rate watchin! and notin! down of phenomena, as
they occ$r in nat$re or at shopfoor with re!ard to ca$se and effect, is caed the observation method of data
coection"
Differentiatin! characteristics of observation method are as foows'
(i) Direct Method' Direct contacts of sensory or!ans partic$ary eyes and ears are invoved to !ather and
record the data"
(ii) Observe and Record' The observer first observes the phenomenon caref$y and then records data"
(iii) +eective and *$rposef$ 0oection' The observations are made with a definite p$rpose in mind and
ony reevant data is coected"
(iv) 0a$se and ,ffect Reationship' Observation method eads to deveopment ca$se and effect
reationship"
Observation Method
Merits Limitations
"his method of observation is common to all the
disciline of research is simle to use.
#t is realistic as it is based on actual and first hand
e%erience.
"he conclusions are more accurate reliable and
deendable.
"his method is used for formulation of hyothesis.
"his method is successfully used for verification of
hyothesis.
Some events cannot be observed ,ithout biases.
!or e%amle, it is not ossible to observe emotions
and sentimental factors, li-e and disli-es ,ithout
bias about the degree of emotions.
#t sometimes results in illusory observations.
.eing a long dra,n rocess, the techni(ues of
observation are e%ensive and time consuming.
Sometimes the atmoshere tends to become
artificial and this leads to a sense of self/
consciousness among the individuals ,ho are being
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#t is useful ,hen indeth study is re(uired. observed. "his defeats the urose of observation.
"he slo,ness of observation methods leads to
disheartening and disinterest among both the
observer and observed.
"he final results of observation deend uon the
interretation and understanding of the observer, the
defects of the sub0ectivity in the e%lanation cree in
the descrition of the observed and deductions from
it.
*s the urose of the observation is -no,n to
observers, therefore, it is his o,n ,ish to record or
vie, a articular thing.
The contro can be of two forms" The observer co$d be a participant or a sient observer" In !ro$p
disc$ssions he is normay a sient observer b$t in interview techni&$es he becomes a part of the interview
and hence his ack of ob2ectivity may hamper the &$aity of his observations"
0ontroed and @ncontroed Observation Methods are the two s$b7methods $sed to watch and $nderstand
the observation"
(i) Controlled Observation: This is a systematic observation based on o!ic and reasonin!" This is done
on a preconceived pan and deiberate effort is made to contro phenomena"
(ii) Uncontrolled Observation: In this method observations are made in a nat$ra s$rro$ndin!"
There is no pannin!, no contro and no $se of any deiberate effort to chan!e the workin! of the
phenomenon"
Distinction between Controlled and Uncontrolled Observation
Parameter Controlled Observation Uncontrolled Observation
Control Dimensions Control over the henomenon, conditions of
light, temerature, humidity, etc.
Control over the observer or observed
No control. Observations under
natural conditions
"echni(ues of Control Used Planning of observations situations
Use of mechanical aliances such as
recorders, ,atch, etc.
Mas and sociometric scales
1yothesis
Detailed notes
&rou discussions
No need to use control techni(ues
Degree of .ias Sub0ective study and bias comes in during
study
"his is an ob0ective study and
-ees the observations bias free
Cause and $ffect
'elationshi
2ell established Difficult to establish
Degree of 'eliability of Data 1igh )o,
The process of observation method is $sed most effectivey in the fied observations where the
presence of the observer does not make a difference to the observed" For e#ampe, if yo$ want to
know how many peope enter the New Dehi raiway station from the *ahar!an2 side, yo$ 2$st
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DATA AND INFORMATION
have to stand at the !ate and co$nt" %o$r presence there or not bein! there does not matter to peope who
are bein! observed"
Steps in Organisation of Field Observation
Foowin! are the main steps !eneray foowed in the or!anisation of fied observations'
(i) Determination of nat$re and imits of observation' Dependin! $pon the nat$re of research and
hypothesis, an o$tine of the research is prepared" This heps the observer to !$ide him on what sho$d
be observed and on what sho$d be eft o$t"
(ii) Determination of time, place and subject of study: A pro2ect can be short or of on! d$ration, it
may be st$died $nder aboratory conditions or in the open" It sho$d aso be decided that

whether we sha observe the behavio$r of phenomenon as a whoe or of the individ$a items in
reation to the tota"
(iii) Determination of the investi!ators' Dependin! on the nat$re, work content and ob2ectives, the needs
for individ$a investi!ator or of a team is to be identified"
(iv) *rovision of mechanica appiances needed' The mechanica appiances for recordin! s$ch as
tape recorder, movie camera, etc" re&$ired sho$d be identified in the be!innin! and $sed when
needed"
/hen yo$ take care of these basic steps, yo$r data wo$d be $sef$ and reevant to the probem in hand"
;" Personal Interview Method
@nder this method of coectin! data there is a face to face contact with the persons from whom
the information is to be obtained (known as informants)" The interviewer asks them &$estions
pertainin! to the s$rvey and coects the desired information" For e#ampe, if a person wants to
coect data abo$t the workin! conditions of the workers of 8ind$stan 3ever 3td, M$mbai, he
wo$d !o to the 833 factory at M$mbai, contact the workers and obtain the re&$ired
information" The information obtained is direct and ori!ina" This is the most s$itabe method of
data coection for b$siness and economic probems"
Personal Interview Method
Merits Demerits
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#n this method, direct contact bet,een researcher
and informants is established and effective
communication is built, ,hich hels in getting direct
information about aradigms, inner feelings,
emotions and sentiments.
!ine tuning of the resonses can be done so as to
get out the best ossible by rehrasing the
(uestions and robing deeer ,herever re(uired
*n intervie, gives us -no,ledge of facts, ,hich are
inaccessible to observation. "he emotional attitude,
secret motivation and incentives governing human
life come to surface in an intervie, though these are
unobservable. "herefore, intervie, has a (uality
,hich may be called sura/observational
"hrough this method it is ossible to verify the
information that has been collected from other
sources.
"here are certain matters, ,hich can be ,ritten in
rivacy but about ,hich one does not ,ish to sea-
before others. #f these matters are the sub0ects of
intervie,, the li-elihood is that only a disguised
version of these ,ill be resented.
#f an intervie,ee is of lo, level intelligence he is
usually unfit to give correct information. Same goes
for intervie,er also as intervie,ing is an art rather
than science and the art has to be mastered
#f the intervie,er is unable to suress his
re0udices, his understanding and interretation of
data given in the intervie, ,ill be defective
#n the intervie,, certain asects of the human
behaviour get overemhasi3ed at the e%ense of
others. "here is a tendency to give too much
imortance to ersonal factors and minimise the role
of environmental factors. "his has to be guarded
against.
Types of nter!ie"s
Interviews can be cassified accordin! to their basic characteristics"
(i) Accordin! to formaness'
(a) Formal interview: In forma interviews, the interviewer presents a set of we defined &$estions
and notes down the answers of informants in accordance with the prescribed r$es" 8ere,
emphasis is !iven on the order and on se&$ence of &$estion"
(b) Informal Interview: 8ere the interviewer has the freedom of aterations in &$estions to s$it a
partic$ar sit$ation in forma interview" 8e may revise, reorder or rephrase the &$estions to s$it
the needs of the respondents" The emphasis is on sit$ation and on &$estionin! !eneray depends
on the sit$ation and on individ$a"
(ii) According to Number
(a) Personal Interview: In persona interview ony a sin!e person is interviewed at one time"
Detaied knowed!e abo$t intimate and persona aspects of individ$a can be obtained as it is
fact7to7face tak"
(b) Group Interview: In this method two or more persons are interviewed at the same time" The
!ro$p interview is, therefore, more s$ited for !atherin! ro$tine information rather than persona
information"
(iii) According to Purpose
(a) Dianostic Interview: In this type of interview, interviewer tries to $nderstand the ca$se or
ca$ses beca$se of which a partic$ar fact or incident happened" For e#ampe, dia!nostic
interviews are hed with the operators with a p$rpose to !rasp the ca$se and nat$re of fai$re of
machines and not to ascertain whether fai$re has occ$rred"
(b) !esearc" Interview: These interviews are hed to !ather information pertainin! to certain
probems b$t may not be as specific as dia!nostic interviews" The &$estions to be asked to !ather
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DATA AND INFORMATION
the desired information are predetermined" In as m$ch as this data is !athered for the p$rpose of
research into a probem, these are caed research interview"
(iv) On the basis of Function and Methodolog!
(a) #on directed Interview $#on Directional Interview%: This is aso known as free or $nstr$ct$red
interview" This is a type of interview in which the interviewer e#ercises no contro, provides
no direction and has no brief or predetermined set of &$estions to ask" The interviewer
merey en!a!es the interviewee in taks and enco$ra!es him to te abo$t his e#periences
and feein!s" This type of interview is s$itabe when the researcher wishes to assess the
amo$nt of awareness a person has abo$t certain probems and the manner in which he views
them"
(b) Focused Interview: This method is empoyed for st$dyin! the socio7psychoo!ica effects of
mass media ike radio, teevision, cinema, etc" The speciaty of the foc$sed interview is that by its
means the persona reactions, emotions and inteect$a orientation of the persons to be
interviewed towards specific iss$es can be st$died"
(v) "lassification according to Sub#ect Matter
(a) &ualitative Interview: The &$aitative interviews are abo$t compe# and non7&$antifiabe s$b2ect
matter" For e#ampe, interviews hed for case st$dies for specific probem st$dy are &$aitative,
beca$se the interviewer has to cover past, present and f$t$re to know a case" In this a &$aitative
anaysis associated with a sit$ation is performed" The s$b2ective opinion of the interviewer is
seeked"
(b) &uantitative Interview: The &$antitative interviews are those in which certain set facts are
!athered abo$t ar!e n$mber of cases" The cens$s interviews is an e#ampe of this type"
Many combinations of these types can be made to s$it a partic$ar sit$ation"
$etting "orrect %esponse in an Interview
The main concern of the researcher empoyin! the method of interview is to !et correct and
to the point answers to the topic of research" A research can be ess e#pensive and economica
ony if deviations from the main ine of approach is kept $nder contro" Normay, the acc$racy of the
responses depends $pon the ski and tactf$ approach of the interviewer and no r$es can be framed in this
connection" +ti the foowin! points can be kept at the back of yo$r mind'
*rior to start the b$siness with the interviewee, interviewer m$st deveop rapport with the interviewer,
so that he fees comfortabe with him"
For aowin! ma#im$m opport$nity of sef7e#pression to the interviewee, he sho$d be aowed to
narrate his e#perience in the story form"
The interviewee and interviewer sho$d be free and frank" The interviewee sho$d be
aowed to describe whatever he thinks worthwhie" ,ven if some irreevant facts are bein! described
the interviewee need not be checked" 8e sho$d not be disco$ra!ed" Tho$!h ma#im$m freedom
of sef7e#pression is desirabe, this can ony be within the scope of the probem bein! disc$ssed"
This re&$ires aertness and direction at the s$itabe occasion" .ood h$mor is the essence of
s$ccessf$ direction"
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The interviewer m$st hear the interviewee with f$ interest" Nobody sho$d be abe to !$ess from his
e#pression that he is bored or his mind is esewhere"
If an interviewer can convince the interviewee that he appreciates his cooperation and !reaty va$es
the informationBs !iven by him, this word of enco$ra!ement has a sa$tary effect on the interviewee,
who then !ives more foc$sed responses"
The information !iven by the interviewee, if s$spected, can be tested thro$!h cross7e#amination of the
interviewee" Moreover, the emotiona e#pression accompanyin! the responses !ive a c$e to the
interviewer abo$t the veracity or otherwise of the answer bein! !iven"
Precautions to be ta&en while Interviewing
Foowin! are the main ca$ses, which render an interview $n$sabe" These sho$d be taken care of when
interviewin!'
(i) Often interviewees, $nder emotiona spes, e#a!!erate the facts in order to satisfy their vanities and
create impression" +ho$d be taken with a pinch of sat"
(ii) +ometimes there is comm$nication !ap between the interviewer and interviewee with the res$t that
interviewees say one thin! and the interviewer $nderstands somethin! ese"
(iii) +ome interviewees deiberatey try to misead the interviewer and make a foo of him, the interviewer
m$st be mat$re and e#perienced eno$!h to te off and reb$ff s$ch fake interviewees"
(iv) +ometimes an ine#perienced interviewer is offended by the behavio$r of interviewees and in a
reven!ef$ mood distorts the facts in his report"
(v) Interviewer sho$d criticay e#amine those aspects of the interview in which the reationship of ca$se
and effect seems to hod" This heps to determine whether the ca$ses are aways present or not when
certain effects appear"
<" 'uestionnaire Method
@nder this method, a forma ist of &$estions pertainin! to the s$rvey (known as &$estionnaire) is prepared
and sent to the vario$s informants" =$estionnaire contains the &$estions and provides the space for answers"
A re&$est is made to the respondents thro$!h a coverin! etter to fi $p the &$estionnaire and send it back
within a specified time"
The &$estionnaires co$d be str$ct$red or $nstr$ct$red" +tr$ct$red &$estionnaires are those that pose
definite, concrete and preordained &$estions with fi#ed response cate!ories" In $nstr$ct$red &$estionnaires,
&$estions are not necessariy presented to the respondents in the same wordin! and do not have fi#ed
responses" Respondents are free to answer the &$estions the way they ike in their own wordin! and stye"
=$estionnaires co$d be a mi# of the two types aso eavin! the fied wide open to the desi!ner of the
&$estionnaire"
(!pes of 'uestions )sed in *evising a 'uestionnaire
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DATA AND INFORMATION
Dichotomo$s =$estions' /hen repy to a &$estion is in the form of one o$t of two aternatives !iven, one
answer bein! !iven in ne!ative and other positive, it is caed a dichotomo$s &$estion" Both the ne!ative
and positive answers combined to!ether form the whoe ran!e of answers !iven" For e#ampe' C/hether
respondent is ed$catedDDDDDD""%es1No"E
M$tipe choice =$estions' In these &$estions normay three to five aternative answers are !iven" These
aternatives are &$ite comprehensive and the respondent has to seect one of them" In framin! these types of
&$estions, the framer has to be ca$tio$s eno$!h that a the possibe aternatives are inc$ded in it and they
are m$t$ay e#c$sive"
Rankin! item =$estions' A variation on m$tipe choice &$estions, these &$estions are so desi!ned as to
record the preferences of the respondent" In rankin! item &$estions there may be severa preferences
arran!ed item wise"
Open7ended =$estions' =$estions, which are of descriptive type and aow the respondent to cite his
e#periences are known as open7ended &$estions"
3eadin! =$estions' These are s$!!estive &$estions" In these types of &$estions the repy is s$!!ested in a
partic$ar direction" +ho$d be avoided as far as possibe"
Ambi!$o$s =$estions' The &$estions that ack carity and are so worded that the meanin! is not cear are
known as ambi!$o$s &$estions" +$ch &$estions normay sho$d not be inc$ded in the &$estionnaire as
they are ikey to conf$se the respondent" The meanin! of s$ch &$estions are not $niformy conv$sed to a
the respondents"
!estionnaire Method
Merits Demerits
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#t re(uires less s-ill to administer than other
methods
#f the informants or the resondents are scattered in
large geograhical areas, this is the most suitable
method
.esides saving money, time is also saved as
simultaneously hundreds of ersons can be
aroached
#t is more reliable in secial cases although in most
cases the reliability is susected
"he resondent is free from e%ternal influences,
such as researcher and therefore rovides reliable,
valid and meaningful information
Chances of errors are lo, because resondent
sulies information himself
"he informants are directly involved in the suly of
information, so the method is more original
"he imersonal nature of (uestionnaire ensures
uniformity from one measurement situation to
another.
)ac- of interest on the art of resondents lo,ers
the number of resonses, ma-ing the study
unreliable
#ncomlete and illegible resonses renders the
,hole resonse bad
#f a roblem re(uires dee and long study, it cannot
be studied through this method
"his method is very rigid since no alteration and
rehrasing of (uestions can be used
Pre0udices and bias of the researcher influences the
framing of the (uestions
Sometimes the (uestionnaire is itself incomlete and
leaves out certain critical (uestions ,hich are
unearthed later rendering the ,hole e%ercise
fruitless
"here is no rovision in this method for coming face
to face ,ith the resondent. "his may result in
maniulation of relies by the resondents.
"onsiderations in 'uestionnaire *esign
=$estionnaire is aways framed with the hep of certain back!ro$nd materia and the probem statement"
The first re&$irement aways is the desi!n of the probem statement and this is the area where most of the
&$estionnaires !o wron!" If yo$r probem statement is fa$ty, yo$r &$estions are not !oin! to point to the
re&$ired direction and yo$ are bo$nd to !et wron! inferences" +pend the ma#im$m time on it, it wi be
we spent"
After the probem statement comes the iss$e of the respondents as their inteect$a eve has to be kept in
mind whie desi!nin! &$estions" If the &$estions, an!$a!e and wordin!s are not in accordance with the
inteect$a eve of respondents then it wo$d not be possibe for them to f$rnish correct repies" In s$ch a
sit$ation the p$rpose of the research wo$d not be f$fied" The o$tcome of past e#periences enabes the
researcher to know the shortcomin!s beforehand, enabin! him to remove these deficiencies so as to
improve the response rate"
Other factors to be taken into acco$nt in the constr$ction of a &$estionnaire'
'ppeal: ,ach &$estionnaire sho$d be attached with an appea in which the aim and p$rpose of the
&$estionnaire is set forth and the sincere cooperation of the respondents is re&$ested" The appea may
be made more effective by !ivin! appropriate incentives in the form of money, books, and with a
promise to !ive a copy of the report to the respondents"
:4
DATA AND INFORMATION
Instructions for fillin up t"e (uestionnaire: The &$estionnaire m$st carry a ist of instr$ctions for
fiin! it $p and dispatchin! it" The respondent m$st not have to pay for ret$rn posta!e, $ness yo$ are
promisin! a pri6e for responses" If the &$estionnaire is time bo$nd, the ast date of receivin!
competed response and the address sho$d be ceary written"
Clarity of &uestions: For desired response it is of $tmost importance to form$ate &$estions that are
direct, cear and precise"
Order of &uestions: The &$estions sho$d be broken $p into sections and each section sho$d have a
n$mber of &$estions, which are m$t$ay interreated" =$estion abo$t persona detai sho$d be
avoided or sho$d be asked in the end"
Protesting of response in 'uestionnaire
The basic thin! that has to be kept in mind is that ambi!$ity sho$d be avoided in coectin! data thro$!h
&$estionnaire method" For this, it is necessary that the &$estionnaire sho$d be tested before it is act$ay
$sed in a b$siness research st$dy" *re7testin! is nothin! b$t testin! of &$estionnaire before it is act$ay
$sed" If testin! is to be done the ri!ht way the foowin! steps are re&$ired'
)estin t"e validity in a representative sample: The &$estionnaire sho$d be tested in every respect,
before it is act$ay maied to the tar!et se!ment" This testin! can be done on a imited n$mber of
peope thro$!h sampin! method b$t whie testin! it within the sampe, it sho$d not be for!otten that
the sampe sho$d be perfecty representative of the tar!et se!ment"
Pretestin to c"ec* w"et"er t"e results are in tune wit" objectives: The &$estionnaire sho$d meet the
ob2ective of research st$dy" It means that it sho$d hep in !ettin! ma#im$m possibe reevant
responses" It is, therefore, necessary that it sho$d be made s$itabe to ob2ectives of st$dy even if it
re&$ires testin! more than once"
Poor response re(uires modification of t"e (uestionnaire: The &$estionnaire is maied to the
informants who are re&$ired to fi it and send it back" If the response of the informant is poor and
very few &$estionnaires are ret$rned, it means that there is somethin! wron! with the form and stye
&$estionnaire and it re&$ires modifications1chan!e and reframin!" F$rthermore, if the &$estionnaires
ret$rned are incompete or the repies are not satisfactory and $p to the mark, it sho$d be pres$med
that the &$estionnaire is defective and it re&$ires modification" After modification the &$estionnaire
sho$d a!ain be s$b2ected to pretestin!"
Problem of %esponse *ifficult Situations for the %esearcher
/hen the &$estionnaire is not eadin! to any response, one of the foowin! factors is $s$ay responsibe
for it'
Importance of the probem to the respondents' It is !eneray seen that those who are concerned with
the probem !ive better response than those who are not"
0haracteristics of the respondents and presti!e of the sponsorin! body' It is seen that ed$cated peope
with socia conscio$sness are more responsive as compared to peope beon!in! to ower economic
!ro$p" If the research st$dy is sponsored by a we7known or!anisation it is ikey to have better
response"
Form and nat$re of &$estionnaire and arran!ements of the &$estions' =$estionnaire aso pays its part
in the matter of response" If the &$estionnaire is short and has been printed in attractive manner, its
ayo$t is neat and attractive, the arran!ements of &$estions is scientificay panned, it is ikey to
invite a better response"
:5
MANA.,M,NT INFORMATION +%+T,M+
To !et better response, ind$cement is needed" Ind$cement may be cassified $nder two heads' monetary and
non7monetary" Monetary ind$cement is !iven !eneray to peope who are economicay weak or ikey to
be inf$enced by money" This money is !iven in advance or after receivin! the fied &$estionnaire" Non7
monetary ind$cement may be in the form of a reward" It may be a etter of appreciation or mentionin! of
the name in the report of st$dy and so on" The s$itabiity of the ind$cement to the st$dy and the
respondentFs e#pectations has to be kept in mind when decidin! $pon which ind$cement to $se"
To take care of the poor response sit$ations companies normay !et st$dents to hep to find respondents
and to fiin!$p the &$estionnaires" ,#ceent way for yo$ to make money whie st$dyin!G
+ched$e
+ched$e is a variation of the &$estionnaire and can be defined as a *erforma that contains a set of
&$estions which are asked and fied by an interviewer himsef in a face to face sit$ation with interviewee"
@nike a &$estionnaire, the sched$e acts as a !$ideine to the interviewer tryin! to !et the re&$ired
response from the interviewee" +ched$e is a standardised device or a too of observation to coect data in
an ob2ective manner" +ame !$ideines as mentioned in the &$estionnaire are to be kept in mind whie
makin! these sched$es"
+. "ase Stud! Method
0ase st$dy method may be defined as sma, inc$sive and intensive st$dy of an sit$ation in which
investi!ator $ses a his skis and methods for systematic !atherin! of eno$!h information abo$t a sit$ation
to $nderstand the probem and its so$tion" The case st$dy is a form of &$aitative c$m &$antitative anaysis
invovin! the very caref$ and compete observation of a person, sit$ation or instit$tion"
Case St!dy Method
Merits Demerits
#ntensive and dee study of the roblem is ossible
Study of sub0ective asects of the roblem is
ossible and more elaborative than other methods
Comarison of ossible roblem statements is
easier
4alid hyothesis can be formulated and tested ,hile
the case is in develoment
#s very useful ,hen you have to study rocesses
and not isolated incidents
4ery useful in situations ,here more of (ualitative
rather than (uantitative decision ma-ing is involved.
Several unrealistic assumtions may be made ,hen
structuring the case, ma-ing it difficult to rela% them
later on
#t is e%ensive in terms of money, time and energy
#f there is imroer understanding bet,een the
develoer and the resondents, the data and hence
the inferences could be false and misleading
Pre0udices and biases come in more easily as the
study is more sub0ective
#t is not ossible to aly samling methods and
generalisation often leads to false conclusions.
Collection of Secondary Data
Atho$!h primary data is re&$ired for most of the interna b$siness sit$ations, many of the strate!ic
decisions depend $pon the information that is e#terna to the or!anisation" The criticaity of the decision
and the time factor invoved wo$d decide whether secondary data is to be $sed or the sit$ation cas for
primary data"
If the sit$ation cas for secondary data, this data wo$d normay be either p$bished or $np$bished"
@np$bished records, atho$!h deain! with the matters of p$bic interest, are not avaiabe to peope
:9
DATA AND INFORMATION
in p$bished form" It means that everybody cannot have access to these records" *roceedin!s of the
meetin!s, notin! on the fies, private research, etc", form the cate!ory of $np$bished records" Normay
these records are very reiabe since there is no fear of their bein! made p$bic, the writers !ive o$t their
views ceary"
*$bished records are avaiabe to peope for investi!ation, per$sa and for f$rther $se, s$rvey reports,
ma!a6ine artices, p$bished st$dies, etc", fa $nder this cate!ory" The data contained in these doc$ments
can be considered reiabe or $nreiabe dependin! $pon the a!ency that is coectin! the data and the
so$rces it had $sed for coectin! this data" Most of the information that is now avaiabe to peope and
researchers in re!ard to b$siness environment are to be fo$nd in the form of reports" The reports p$bished
by !overnments are considered more dependabe on one hand and on the other hand some peope think that
the reports that are p$bished by certain private individ$as and a!encies are more dependabe and reiabe"
There are so many so$rces of p$bished data that it is impossibe to name them a here" Inspite of so many
so$rces, the p$bished data $s$ay s$ffers from the foowin! drawbacks'
(a) Data abo$t a the aspects of b$siness and economic activity are not coected"
(b) ,ven the .overnment of India does not have an $p7to7date and atest data abo$t many socio7economic
aspects as we as the b$siness environment, atho$!h it is now workin! towards it"
(c) Data acks in homo!eneity and contin$ity"
(d) The data coected by the !overnment a!encies is not beyond do$bt" This is d$e to the approach of the
administration and aso beca$se of the method of data coection" The reso$rces that are p$t at the
disposa of the machinery that is entr$sted for the task of coection of data is very mea!re"
(e) Data coected by private a!encies r$n the risk of their biases comin! into pict$re, as aso their own
aims and ob2ectives co$d make them present the data in a improper way renderin! it $n$sef$ for
yo$"
Therefore, before $sin! the secondary data, it is essentia that the investi!ator sho$d satisfy himsef that the
data is' (a) Reiabe, (b) +$itabe, (c) Ade&$ate and (d) Timey"
Reiabiity of data can be estabished by askin! yo$rsef the foowin! &$estions' /ho coected the data
and from which so$rcesH Are the methods $sed in coectin! are standard methods and reiabeH /hether
both the compier and so$rce are dependabeH The p$rpose for which the data were ori!inay coected is in
t$ne with the p$rpose that yo$ are !oin! to $se the data for, the secondary data sho$d be s$itabe for the
p$rpose of en&$iry" ,ven if the data is reiabe it sho$d not be $sed if the same is fo$nd to be $ns$itabe for
the en&$iry" For checkin! the s$itabiity of data one sho$d see' /hat was the ob2ect of the en&$iryH The
definitions of vario$s items and $nits of coection m$st be caref$y scr$tini6ed" /hat was the acc$racy
aimed atH /hat is the time of coection of data re&$iredH 0an it be re!arded a norma timeH Is the data
homo!eneo$sH
The secondary data may be reiabe and s$itabe b$t the same may be inade&$ate for the p$rpose
of investi!ation" The data coected earier may refer to a probem area which co$d be narrower or
wider than the area re&$ired for the present en&$iry and if it is s$ch, the data sho$d be caref$y
scr$tini6ed to test whether it meets the re&$irements or not" If it does not meet the re&$irements of the
scope or the time frame of st$dy, do not $se the data 2$st beca$se it is the ony data that is there" Atho$!h
knowed!e of the matter $nder consideration and proper $se of the statistica methods is pres$pposed,
!reat care is necessary in deain! with p$bished statistics beca$se of the imitations or inacc$racies that
may be present"
:?
MANA.,M,NT INFORMATION +%+T,M+
"hapter,-
#diting of Data
The ne#t o!ica step after the coection of data, is the process of refinin! it for proper $tii6ation" This
process is known as editin!" ,ditin! of data inc$des the identification and droppin! of the $nwanted
information" In addition to this, certain steps are taken to compete the eft o$t information" Another aim of
editin! is to find o$t and rectify possibe errors or irre!$arities d$rin! the coection of data" Th$s, the
process of editin! impies the scr$tiny of data in vario$s ways" The process of editin! of primary data can
be divided two the foowin! si# sta!es'
(i) Decipherin!
(ii) +cr$tiny for competeness
(iii) +cr$tiny for $niformity
(iv) +cr$tiny for consistency
(v) +cr$tiny for acc$racy
;A
DATA AND INFORMATION
(vi) 0odin! of data
In a simiar way, the editin! of secondary data impies its scr$tiny reatin! to the foowin! points'
(i) Are data representativeH
(ii) Are data ade&$ateH
(iii) Are data reiabeH
$ecording of Data
Recordin! is the process of storin! the avaiabe data into vario$s homo!eneo$s casses and s$bcasses
accordin! to some common characteristics or ob2ective of investi!ation"
The data sho$d be recorded in s$ch a way that'
(i) A mass of data can be presented in a considered form"
(ii) The points of simiarity and dissimiarity can be hi!hi!hted"
(iii) The reationship between variabes can be $nderstandabe"
(iv) The comparison can be faciitated"
(v) The data can be prepared for tab$ation and anaysis"
(vi) Data and information can be stored in databases in data wareho$ses and in data marts"
"hapter,+
Classification of Data
The coected data are a compe# and $nor!ani6ed mass of fi!$res which is very diffic$t to anayse and
interpret" Therefore, it becomes necessary to or!ani6e this so that it becomes easier to !rasp its broad
feat$res" This task is accompished by the process of cassification and tab$ation"
$e%uisites of a Good Classification
A !ood cassification m$st possess the foowin! feat$res '
:" @nambi!$o$s ' The cassification sho$d not ead to any ambi!$ity or conf$sion"
;" ,#ha$stive ' A cassification is said to be e#ha$stive if there is no item that cannot be aotted a cass"
;:
MANA.,M,NT INFORMATION +%+T,M+
<" M$t$ay ,#c$sive ' Different casses are said to be m$t$ay e#c$sive if they are non7overappin!"
/hen a cassification is m$t$ay e#c$sive, each item of the data can be paced ony in one of the
casses"
>" Fe#ibiity ' A !ood cassification sho$d be capabe of bein! ad2$sted accordin! to the chan!ed
sit$ations and conditions"
-" +tabiity ' The principe of cassification, once decided, sho$d remain same thro$!ho$t the anaysis,
otherwise it wi not be possibe to !et meanin!f$ res$ts" In the absence of stabiity, the res$ts of
the same type of investi!ation at different time periods may not be comparabe"
4" +$itabiity ' The cassification sho$d be s$itabe to the ob2ective(s) of investi!ation"
5" 8omo!eneity ' A cassification is said to be homo!eneo$s if simiar items are paced in a cass"
9" Reveain! ' A cassification is said to be reveain! if it brin!s o$t essentia feat$res of the coected
data" This can be done by seectin! a s$itabe n$mber of casses" Makin! few casses means over
s$mmari6ation whie ar!e n$mber casses fai to revea any pattern of behavio$r of the variabe"
Types of Classification
The nat$re of cassification depends $pon the p$rpose and ob2ective of investi!ation" The foowin! are
some very common types of cassification '
:" .eo!raphica (or spatia) cassification
;" 0hronoo!ica cassification
<" 0onditiona cassification
>" =$aitative cassification
-" =$antitative cassification
1. $eographical .or spatial/ classification
/hen the data are cassified accordin! to !eo!raphica ocation or re!ion, it is caed a !eo!raphica
cassification" For e#ampe, the +tatewise Net Domestic *rod$ct for :?9>79- at c$rrent prices can be shown
as beow'
State,ise Net Domestic Product, 5678/79 :#n 's million, at current Prices;
:" 'nd"raPrades"
;" 'runac"al Prades"
<" 'ssam
>" +i"ar
-" Gujrat
4" ,aryana
5" ,imac"al Prades"
9" -ammu and .as"mir
?" .arnata*a
:A" .erala
::" /ad"yaPrades"
:;" /a"aras"tra
::4?>-
:4A-
>-->>
::>:>A
::>><>
>4:;:
:A:4:
:<594
95?A4
-5:<4
?4-AA
;:-->-
:<" /anipur
:>" /e"alaya
:-" /i0oram
:4" #aaland
:5" Orissa
:9" Punjab
:?" !ajast"an
;A" 1i**im
;:" )amil #adu
;;" )ripura
;<" Uttar Prades"
;>" 2est +enal
<>4;
;5A;
:A;4
;;54
>5>:<
5><?;
5;94;
?-9
:::4;-
><54
;:<;44
:-A??>
;;
DATA AND INFORMATION
For the p$rpose of immediate ocation or comparison of the data, it is necessary that it sho$d be presented
either in aphabetica or in ascendin! (or descendin!) order of the fi!$res"
0. "horonological classification
/hen the data are cassified on the basis of its time of occ$rrence, it is caed a chronoo!ica cassification"
Iario$s time series s$ch as J Nationa Income fi!$res (ann$a), ann$a o$tp$t of wheat, monthy
e#pendit$re of a ho$sehod, daiy cons$mption of mik, etc", are some e#ampes of chronoo!ica
cassification"
-. "onditional classification
/hen the data are cassified accordin! to certain conditions, other than !eo!raphica or chronoo!ica, it is
caed a conditiona cassification" An e#ampe of s$ch cassification is !iven beow '
Cate"orised Classification of P!blic #$pendit!re% 1&'(-')*
+. 'ualitative classification or classification according to attributes
/hen the characteristics of the data are non7meas$rabe, it is caed a &$aitative data" The e#ampes of
non7meas$rabe characteristics are se# of a person, marita stat$s, coo$r, honesty, intei!ence, etc" These
characteristics are aso known as attrib$tes" /hen &$aitative data are !iven, vario$s items can be cassified
into two or more !ro$ps accordin! to a characteristic" If the data are cassified ony into two cate!ories
accordin! to the presence or absence of an attrib$te, the cassification is termed as dichotomo$s or twofod
cassification" On the other hand, if the data are cassified into more than two cate!ories accordin! to an
attrib$te, it is caed a manifod cassification" For e#ampe, cassification of vario$s st$dents of a coe!e
accordin! to the coo$r of their eyes ike back, brown, !ray, b$e, etc" The conditiona cassification, !iven
above, is aso an e#ampe of a manifod cassification"
If the cassification is done accordin! to a sin!e attrib$te, it is known as a one7way cassification" On the
other hand, the cassification done accordin! to two or more attrib$tes is known as a two7way cassification"
The e#ampe of a three7way cassification, where pop$ation is dichotomi6ed accordin! to each attrib$teJ
se#, honesty and smokin! habit, is !iven beow '
;<
Category
Amount
(Rs Crores )
Share
(Percentage)
1. General
2. Defence
3. Educaton
!. "ealth
#. "ousng$ %elfare and
Socal Securty
&. Economc Ser'ces
(. )ther Ser'ces
*!&!
1+,#!
1+2+2
2#3&
(++2
32!11
*+2
12.*
1!.,
13.*
3.#
*.#
!!.2
1.2
-otal (33(1 1++.+
MANA.,M,NT INFORMATION +%+T,M+
/e note that there wi be ei!ht s$b!ro$ps of individ$as ike mae, honest, smokersJ mae, honest,
nonsmokers, etc"
In the cassification, !iven above, the pop$ation is dichotomi6ed with respect to each of the three
attrib$tes" There may be sit$ations where cassification with respect to one attrib$te is dichotomo$s whie it
is manifod with respect to the other" A two way cassification of this type is shown as'
-" =$antitative cassification or cassification accordin! to variabes
In case of &$antitative data, the characteristic is meas$rabe in terms of n$mbers and is termed as variabe,
e"!", wei!ht, hei!ht, income, the n$mber of chidren in a famiy, the n$mber of crime cases in a city, ife of
an eectric b$b of a company, etc" A variabe can take a different va$e correspondin! to a different item of
the pop$ation or $niverse"
Iariabes can be of two types (a) Discrete and (b) 0ontin$o$s"
(a) *iscrete 1ariable A discrete variabe can ass$me ony some specific va$es in a !iven interva" For
e#ampe, the n$mber of chidren in a famiy, the n$mber of rooms on each foor of a m$tistoried
b$idin!, etc"
(b) 0ontin$o$s Iariabe' A contin$o$s variabe can ass$me any va$e in a !iven interva" For e#ampe,
monthy income of a worker can take any va$e, say, between Rs :,AAA to ;,-AA" The income of a
worker can be Rs :,-AA";-, etc" +imiary, the ife of an eectric b$b is a contin$o$s variabe that can
take any va$e from A toKLM
It m$st be pointed o$t here that, in practice, data coected on a contin$o$s variabe aso ook ike the
data of a discrete variabe" This is d$e to the fact that meas$rements, done even with the finest de!ree
of acc$racy, can ony be e#pressed in a discrete form" For e#ampe, hei!ht meas$red even with
acc$racy $pto three paces after decima !ives discrete va$es ike :45"4>- cms, :45"4>4 cms, etc"
+imiary a!e, income, time, etc", are contin$o$s variabes b$t their act$a meas$rements are
e#pressed in terms of discrete n$mbers"
In the cassification accordin! to variabes, the data are cassified by the va$es of the variabes for
each item" As in the case of attrib$tes, the cassification on the basis of a sin!e variabe is termed as a
one7way cassification" +imiary, there can be a two7way and m$ti7way cassification of the data" For
e#ampe, if the st$dents of a cass are cassified on the basis of their marks in statistics, we !et a one7
way cassification" 8owever, if these st$dents are sim$taneo$sy cassified on the basis of marks in
statistics and marks in economics, it becomes a two7way cassification"
It sho$d be noted here that in a two7way cassification, it is possibe to have sim$taneo$s
cassification accordin! to an attrib$te and a variabe" For e#ampe, the cassification of st$dents of a
cass on the basis of their marks in statistics and on the basis of the se# of the person"
;>
DATA AND INFORMATION
$etrie!al of Data
Once the data has been recorded in a partic$ar medi$m, it can be retrieved for its $se in f$t$re" The main
thin! of consideration is that the retrieva of data is done to present compe# and $nwiedy facts in s$ch a
manner that they wo$d be $nderstandabe, cear and comprehensibe at a !ance"
Presentation of Data
The data can be presented by foowin! methods'
a" Tab$ar *resentation
b" 0hartmatic Representation and
c" .raphic Representation
a& Ta'ular Presentation
Atho$!h tab$ar presentation ooks the easiest, in fact its str$ct$rin! and formattin! tes a ot abo$t the
emphasis that yo$ wish to make" Reevant data presented in easiy comparabe form is the key to the
effective presentation of data"
To !ive yo$ an e#ampe, the foowin! tabe represents the share market and important ind$stries sit$ation
in the market" 0ompare this by presentin! ony the atest data and yo$ $nderstand how reevant $sin! ri!ht
fieds in the tabe are for effective anaysis re&$irements"
Another way of presentin! the data wo$d be to !ive ony the comparative fi!$res of two periods and the et
the reader draw his own inferences" The $nstr$ct$red presentation and the str$ct$red presentation is !iven
beow of the b$d!et statement, ceary hi!hi!htin! the need for effective presentation" +impy by ookin! at
the tabes, yo$ can te which is str$ct$red and which is $nstr$ct$red and that is the bea$ty of the
presentation"
Share Prices
Latest +!ne && Month ,"o -ear ,"o .ariation Month Over /01 -ear
.S$ Sense% 8,<5= 8,=>< ?,59? ?.?6 ??.9<
Sense% shares P+$ 5>.55 5@.9 5<.@6 ?.>= ?8.7?
.S$ National 5,7=@ 5,>9@ 5,?79 <.79 ?=.8=
National shares P+$ 59.7 59.89 55.?6 <.<> ?7.><
#2 Ind!stry Indices
/$ngineering &oods 788 7<9 757 <.?= ?.57
/"yres A "ubes ?,779 ?,6<= ?,77@ /=.76 /=.=?
/!ertilisers A Chem 97= 869 999 5>.5> 8.9=
/Pharmaceuticals 8,58> 8,9?@ <,==@ /7.97 5=@.>?
/Plantations 58?9 5889 5,5=> /=.@6 <6.@?
*ll #ndus.+ *ll #ndia <,=>8 <,=7= 5,977 /=.<6 ?=.@=
3!d"et at a 4lance
's .illions
Item
1&&)-&'
/,ct!al1
1&&'-'&
/3#1
1&&'-&&
/5#1
1&&&-6777
/3#1
1* 5even!e 5eceipts
1%88& 1%(67 1%9)) 1%'6'
;-
MANA.,M,NT INFORMATION +%+T,M+
6* 2a$ 5even!e /:et to Centre1
&9) 1%1(& 1%7&9 1%86;
8* :on-ta$ 5even!e 8'6 ;91 ;'1 979
;* Capital 5eceipts
&'6 1%79& 1%6;6 1%717
9* 5ecoveries of loans '8 && 119 111
(* Other 5eceipts
& 97 &7 177
)* 3orrowin"s and other liabilities
''& &17
1%78) )&&
''& &17 1%78) )&&
'* 2otal 5eceipts 6%861 6%()& 6%'1& 6%'8&
&* :on-plan #$pendit!re 1%)87 1%&9& 6%189 6%7(&
17* On 5even!e ,cco!nt 1%;98 1%((8 1%)() 1%&78
11* Interest Payments (9( )97 ))6 ''7
16* On Capital ,cco!nt 6)' 6&( 8(' 1(9
18* Plan #$pendit!re 9&1 )67 ('; ))7
1;* On 5even!e ,cco!nt 896 ;8' ;1; ;((
19* On Capital ,cco!nt 68& 6'6 6(& 878
1(* 2otal #$pendit!re /&<181 6%861 6%()& 6%'1& 6%'8&
1)* 5even!e #$pendit!re /17<1;1 1%'78 6%171 6%1'1 6%8)7
1'* Capital #$pendit!re /16<191 91) 9)& (8' ;(&
1&* 5even!e Deficit /1-1)1 ;(; ;'1 ;'1 (79 9;1
67* =iscal Deficit /1<9<(1-1( ''& &17 1%78) )&&
61* Primary Deficit /67-111 688 1(7 6(9 -'7
('& Chartmatic $epresentation
Tabes are re&$ired b$t in themseves are not s$fficient for the proper presentation of data" 0harts and
c$rves are aso very $sef$ aids for data presentation" The specia feat$res of charts are that they do away
with fi!$res ato!ether and present attractive, simpe and appeain! pict$res and charts" Fi!$res are $s$ay
avoided by mana!er and common man aike b$t pict$res, charts and !raphs, etc", aways attract and impress
them" A pa!e from the b$d!et report wi make cod and $ninterestin! readin!, b$t when it is transated into
the an!$a!e of charts and !raphs it becomes fascinatin!" This is m$ch more so with the advent
of m$timedia technoo!y" For e#ampe, it wo$d be s$fficient to show the foowin! from the @nion
B$d!et :???"
5!pee Comes =rom
;4
DATA AND INFORMATION
The above !raph is caed a pie chart" +ee how m$ch $ser7friendy it is to ook at" 0ontrast this with the
tabe !iven beow which shows the same fi!$res in a tab$ar form"
3orrowin"
s > Other
Liabilities
Corporation
2a$
Income
2a$
C!stom
s
#$cis
e
Other
2a$es
:on-2a$
5even!e
:on-Debt
Capital
receipts
'uee
Comes !rom
<9 6 7 59 <= < 59 @
As is the case with other methods, chartmatic presentation aso has its own merits and demerits'
Chartmatic Presentation
Merits Demerits
$asy to UnderstandB "hey give a birdCs eye vie, of
the entire data and therefore the contents+
information resented is easily understood.
$conomy of "ime and )abourB Since little effort is
necessary in understanding charts they save time
,hich is other,ise needed in dra,ing inferences from
a set of figures.
Simlification of Comle%ityB Charts simlify
comle%ities of statistical data. &enerally all figures
and articularly big ones are not easily understood,
but if they are resented using charts their
imortance is at once realised.
)asting #mressionB "he imression created by charts
is more lasting than the effect of a set of figures. "hey
have a great memorising effect.
1elful in ComarisonB Charts ma-e comarison
easy. 2ith the hel of charts comarisons of grous,
and series of figures can be made ,ith very little
trouble.
Useful to *llB Charts have universal usefulness. "hey
are useful to all users, ,hether they are social
scientists, mathematicians, businessmen,
economists, engineers or statisticians.
Only Comarison is PossibleB One of the greatest
merit of chart is that it facilitates comarison. .ut only
,hen one chart is available, this urose stands
defeated.
*ro%imate Picture of DataB Charts cannot be used
every,here to reresent data, because they rovide
only aro%imate icture of data.
Difficult to Sho, Minor DifferencesB "hrough charts it
is not ossible to sho, minor differences.
)imited #nformationB Charts are useful only for general
uses as they rovide only limited information.
Correct Conclusions are not PossibleB "hrough
charts, it is difficult to have correct conclusions. "hey
sho, only aro%imate values.
$asily MisusedB Charts are caable of being misused
very easily. #f a ,rong tye of chart is used it can give
fallacious conclusions and one should al,ays
safeguard against such tyes of charts and ictures.
Charts are not caable of further mathematical
treatment.
"he t,o dimensional and three dimensional charts
cannot be accurately araised visually and
therefore, as far as ossible, their use should be
avoided.
)asic Design Principles
Factors to 'e considered in designing a chart
The foowin! are the main basic principes that sho$d be $sed in the desi!n and ayo$t of charts'
(i) Nat$re of Data' It is a fact which one sho$d reco!ni6e that certain type of data do not end themseves
to satisfactory chartmatic or !raphic presentation" Th$s, it is advisabe not to attempt to constr$ct a
chart or chart that wo$d possess no advanta!e over the ori!ina data"
;5
MANA.,M,NT INFORMATION +%+T,M+
(ii) *$rpose of the 0hart' 0hart or charts of a types sho$d f$fi the foowin! ob2ectives"
(a) The chart sho$d be acc$rate representative of data"
(b) The chart sho$d be cear, easiy read and $nderstood"
(c) The chart sho$d be constr$cted as to attract and hod attention"
(iii) Time Avaiabe for *reparation' Time and abo$r invoved, in the constr$ction of charts are of
!reat importance" Desi!nin! a chart sho$d never be h$rried" If the amo$nt of time is inade&$ate,
every effort sho$d be made to simpify and e#pedite the work, b$t not at the cost of owerin!
standards"
(iv) ,nd7$ser' The ed$cationa standard and interest of end7$ser for whom the chart is meant sho$d be
!iven primary consideration"
*ne-Dimensional Charts or )ar Charts
Bar charts are in the shape of vertica or hori6onta ines or bars" 3en!th of the ine or bar is proportiona to
the different fi!$res they represent" They are caed one dimensiona beca$se it is ony the en!th of the bar
that matters" Bar charts are the easiest and most adaptabe !enera p$rpose charts" B$t they sho$d be $sed
ony to represent sma amo$nts of data which is in one series"
The foowin! chart represents the infation rate for the ast one year $sin! bar chart'
Inflation 5ate
8ere each bar represents one month" Note that writin! the e#act percenta!e of infation over each bar
makes it easier for yo$ to know the e#act percenta!e"
Selection of Suita'le Charts
There are many chart types which can be $sed as re&$ired" +even most $sed ones, are !iven beow" The
data tabe bein! $sed for most of the !raphs is this one'
=o!r !arter Sales from three re"ions for .ibh! Ind!stries
1st tr 6nd tr 8rd tr ;th tr
#ast <=.8 <>.8 6= <=.8
?est ?=.@ ?7.@ ?8.@ ?5.@
:orth 89.6 8@.6 89 8?.6
;9
7.41
8.04
8.78
8.67
8.22
7.85
5.53
4.43
5.26
5.12
4.2
3.9
3.53
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
June July Aug Sep Oct Nov Dec Jan Feb a! Ap! ay June
"#$
DATA AND INFORMATION
1+ ,ine Chart
These show trends or chan!es in data over a period of time, at even intervas" Atho$!h simiar to an area
chart, a ine chart emphasi6es time fow and rate of chan!e, rather than the amo$nt of chan!e"
/hen yo$ need to show trends or chan!es in data at $neven or c$stered intervas, an #y (scatter) chart is
$s$ay more appropriate than a ine chart"
8i!h73ow70ose and Open78i!h73ow70ose 0harts' The hi!h7ow7cose and open7hi!h7ow7cose s$btypes
of a ine chart are often $sed for stock pricesJ the open7hi!h7ow7cose s$btype is sometimes caed a
candestick chart" The hi!h7ow7cose chart s$btype can aso be $sed for scientific data, for e#ampe, to
indicate temperat$re chan!es"
2+ -rea Chart
It shows the reative importance of va$es over a period of time" Atho$!h simiar to a ine chart, an area
chart emphasi6es the amo$nt of chan!e (ma!nit$de of va$es) rather than time and the rate of chan!e"
.+ )ar Chart
;?
0
20
40
60
80
100
1%t 't! 2n( 't! 3!( 't! 4t) 't!
*a%t
+e%t
No!t)
0
50
100
150
200
1%t 't! 2n( 't! 3!( 't! 4t) 't!
No!t)
+e%t
*a%t
0 20 40 60 80 100
1%t 't!
2n( 't!
3!( 't!
4t) 't!
No!t)
+e%t
*a%t
MANA.,M,NT INFORMATION +%+T,M+
It shows individ$a fi!$res at a specific time or i$strates comparisons between items" The stacked and
:AAN stacked s$btypes show reationships to a whoe" The cate!ories on a bar chart are or!anised
verticay, the va$es hori6ontay, pacin! more emphasis on comparisons and ess emphasis on time"
,#ampe of a :AAN stacked s$btype is shown beow'
Note that it shows the reative share of each 6one in each of the &$arters makin! it easier to decipher how
the market shares are movin!"
/+ Column Chart
It shows variation over a period of time or i$strates comparisons between items" The stacked and :AAN
stacked s$btypes show reationships to a whoe" Atho$!h simiar to a bar chart, a co$mn chartFs cate!ories
are or!anised hori6ontay, its va$es verticay"
0+ Pie Chart
It shows the proportions of parts to a whoe" This chart type is $sef$ for emphasi6in! a si!nificant eement"
A pie chart aways contains one data seriesJ if yo$ have more than one data series seected, ony one wi be
dispayed in yo$r chart" An e#ampe has aready been shown before" If yo$ want to show more than one
data series $se do$!hn$t charts as shown beow"
1+ Doughnut Chart
<A
0# 20# 40# 60# 80# 100#
1%t 't!
2n( 't!
3!( 't!
4t) 't!
*a%t
+e%t
No!t)
0
20
40
60
80
100
1%t 't! 2n(
't!
3!( 't!4t) 't!
*a%t
+e%t
No!t)
1st tr
6nd tr
8rd tr
;th tr
O$ter circe
represents north,
midde one
represents west and
inner one
represents east
DATA AND INFORMATION
3ike the pie chart, do$!hn$t chart shows the proportions of parts to a whoe" The main difference, other
than the Cdo$!hn$t hoe,E is that it can show more than one data series, $nike the pie chart" The do$!hn$t
chart is widey $sed in Asian co$ntries"
2+ $adar chart
It shows chan!es or fre&$encies of data series reative to a centre point and to one another" ,ach cate!ory
has its own va$e a#is radiatin! from the centre pointJ ines connect a the data markers in the same series"
The radar chart is widey $sed in Asian co$ntries"
(c& Graphic $epresentation
Atho$!h charts are a ri!ht for presentation p$rposes, for statistica anaysis p$rposes we need to have
contin$o$s charts which make it easy for $s to anayse data" Obvio$sy time series and fre&$ency
distrib$tions cannot be reiaby potted on the charts hence the need for !raphs" .raphs render a compe#
data simpe and more easiy $nderstandabe and aso make comparison easy by brin!in! connected data
near each other and pacin! their !raphic representation side by side"
3hen to Use and not to Use Graphs
The !raphs may be $sed in the foowin! circ$mstances'
(i) /hen the emphasis is on the movement rather than on the act$a amo$nt"
(ii) /hen severa series have to be compared ony c$rsoriy"
(iii) /hen fi!$res cover a on! period of time"
(iv) /hen a fre&$ency distrib$tion is represented by two or more c$rves"
(v) /hen estimates, forecasts, interpoation, or e#trapoation are to be shown"
The !raphs may not be $sed in the foowin! cases'
<:
0
50
100
1%t 't!
2n( 't!
3!( 't!
4t) 't!
*a%t
+e%t
No!t)
MANA.,M,NT INFORMATION +%+T,M+
(i) /here there are very few potted va$es in the series"
(ii) /hen the emphasis sho$d be on the chan!e in amo$nts rather than on the movement of the series"
(iii) To emphasi6e the difference between va$es or amo$nts on different dates"
(iv) /hen the movement of data is e#tremey irre!$ar"
(v) /hen the presentation is desi!ned for pop$ar appea"
The !raphs are divided into two cate!ories' (i) .raphs of Time +eries or 8isto!rams, (ii) .raphs of
Fre&$ency Distrib$tion"
Atho$!h the !raphs are $s$ay made on the nat$ra scae, it is diffic$t to draw interpretations from when
the reative rates of chan!e are to be st$died" In these cases we make $se of the o!arithmic or the ratio
scae" In ratio scae e&$a vertica distances indicate e&$a reative rates of chan!e or e&$a percenta!e
chan!e" This scae is mosty $sed whie st$dyin! the chan!es in saes, profits, prod$ction, etc"
3o! !raphs $se o! scaes on both the a#is and semi7o! !raphs $se an arithmetic scae on the hori6onta
a#is" /hen potted on o!arithmic paper, a !eometric pro!ression forms a strai!ht ine since o!arithms of a
!eometric pro!ression form an arithmetic pro!ression"
nterpretation of Semi-logarithmic Graphs
The foowin! may be considered as the r$es for the interpretation of the semi7o!arithmic c$rves'
A c$rve increasin! at a constant rate takes the form of a strai!ht ascendin! ine, whie a c$rve
decreasin! at a $niform rate is a strai!ht descendin! ine"
An ascendin! conve# c$rve indicates an increase at a decreasin! rate, i"e", if the c$rve bends $pward
the rate of !rowth is increasin!"
If the c$rve bends downward the rate of !rowth is decreasin!"
A c$rve increasin! at an increasin! !rowth rate moves $pward in concave fashion" If the c$rve is
decreasin! at an increasin! rate the c$rve pattern is conve# downward"
/hen the c$rve is hori6onta, it is neither increasin! nor decreasin!" If the direction of the c$rve in
one portion is the same as in another portion, it indicates the same percenta!e rate of chan!e in both"
If two c$rves on the same ratio !raph r$n parae they represent e&$a percenta!e rates of chan!es" If
the c$rve is steeper in one portion than another, it indicates a more rapid rate of chan!e in the former
than in the ater"
Difference 'et"een 4atural Scale and ,og Scale
In a nat$ra scae, e&$a differences are meas$red by e&$a distances, th$s abso$te movements are st$died"
In a o! scae, however, the difference between scae meas$res e&$a proportiona movement" This is cear
from the foowin! i$stration'
,rithmetic Pro"ression
/addin" @ to last n!mber1
4eometric Pro"ression
/do!blin" the last n!mber1
<;
DATA AND INFORMATION
< <
8 8
@ 7
7 5@
5= ?<
5< @8
58 5<7
The nat$ra scae is based on the arithmetic pro!ression whie ratio scae is based on the !eometric
pro!ression" Nat$ra scae indicates abso$te chan!e whereas ratio scae indicates rate of chan!e or reative
chan!es" Ne!ative va$es can be shown on the nat$ra scae b$t not on the ratio scae" In nat$ra scae
simpe !raph paper is $sed, whereas in the ratio scae semi o!arithmic !raph paper is $sed" In case of ratio
scaes the meanin! of the data is derived from the direction of ine whereas in the case of nat$ra scae the
meanin! is derived from the position of ine" In case of variabes havin! wide ran!e of va$es, ratio scae is
preferred over nat$ra scae" In the nat$ra scae, the meas$rement starts from 6ero on the vertica scae and
sometimes fase base ine is $sed, b$t in ratio scae the meas$rement on vertica a#is does not start with
6ero, hence it does not re&$ire fase base ine"
5istogram
The word histori!ram sho$d not be conf$sed with histo!ram" .raphs of contin$o$s time series are known
as histori!ram" If abso$te va$es of a variabe are taken into consideration the !raph obtained by pottin!
them is known as abso$te histori!ram" If the va$es are represented by inde# n$mbers and if in pace of
act$a va$es indices of inde# n$mbers are potted, the !raphs so obtained are caed inde# histori!rams"
8istor!rams may be constr$cted on the nat$ra scae or on ratio scaes"
In a histo!ram the data are potted as a series of rectan!es" 0ass intervas are shown on the # a#is and the
fre&$encies on the y a#is" There are as many co$mns as there are casses" The hei!ht of each rectan!e
represents the correspondin! fre&$ency of that cass" ,ach rectan!e is 2oined with the other" This !ives a
contin$o$s pict$re" The s$m of fre&$encies is represented by the tota area of the histo!ram, whie the area
of vario$s co$mns is proportiona to the fre&$encies of the respective casses"
The histo!ram is especiay appropriate for depictin! contin$o$s series, atho$!h it is aso $sed for discrete
series" One disadvanta!e of histo!ram is that different !ro$pin!s wo$d !ive different shapes"
0o$mn charts and histo!rams are different from each other" In a histo!ram, the bars are ad2acent to one
another, which is not so in other co$mn charts" The area of the bar is proportiona to the fre&$ency and not
ony the hei!ht" B$t in case of co$mn charts this condition is not necessary" Finay, histo!ram represents
contin$o$s data b$t co$mn charts cannot represent contin$o$s data"
The tabe for which the histo!ram shown beow is made, is !iven beow'
Daily ?a"es /5s*1 :o* of ?orAers Daily ?a"es /5s*1 :o* of ?orAers
<=/<9 <5 99/@= @7
<9/?= <6 @=/@9 @=
?=/?9 ?8 @9/>= 9=
?9/8= ?6 >=/>9 8?
8=/89 8? >9/7= ?6
<<
MANA.,M,NT INFORMATION +%+T,M+
89/9= 9= 7=/79 ?8
9=/99 @= 79/6= <6
6=/69 <5
/e can pot these points $sin! a ine and the !raph that res$ts d$e to it is caed the fre&$ency poy!on" /e
are showin! it in two ways, one way is potted on the fre&$ency distrib$tion and the second way is
standaone"
=reB!ency Cisto"ram of wa"es of factory worAers
=reB!ency Poly"on of wa"es of factory worAers
Of co$rse this c$rve can be somoothened to !et the fre&$ency c$rve which is $sed in most of the
probabiity distrib$tions"
=reB!ency Distrib!tion of wa"es of factory worAers
<>
Frequency Histogram of wages of factory workers
0
10
20
30
40
50
60
70
80
2
0
,
2
5
3
0
,
3
5
4
0
,
4
5
5
0
,
5
5
6
0
,
6
5
7
0
,
7
5
8
0
,
8
5
9
0
,
9
5
Nu-be! o. +o!/e!%
0
10
20
30
40
50
60
70
80
2
0
,
2
5
3
0
,
3
5
4
0
,
4
5
5
0
,
5
5
6
0
,
6
5
7
0
,
7
5
8
0
,
8
5
9
0
,
9
5
Frequency Distribution of wages of factory workers
0
20
40
60
80
2
0
,
2
5
3
0
,
3
5
4
0
,
4
5
5
0
,
5
5
6
0
,
6
5
7
0
,
7
5
8
0
,
8
5
9
0
,
9
5
Nu-be! o. +o!/e!%
DATA AND INFORMATION
Processing of Data
B$siness do not r$n on 2$st raw data" They r$n on information (Data, when
processed and presented in proper conte#t, becomes information which contros the
activity of the or!ani6ation) and the knowed!e of how to p$t that information to
$se" Onowed!e is not readiy avaiabe, however, especiay in todayBs word" In
many cases it is contin$o$sy constr$cted from data and1or information, in a process
that may not be simpe or easy"
Summary
+o after !oin! thro$!h this chapter, we can s$mmari6e the concepts"
Data is the known facts that can be recorded and that have impicit meanin!"
*rimary data represents those items that are coected for the first time and first hand"
+econdary data is the data which is not ori!inay coected b$t rather obtained from p$bished
so$rces and is normay statisticay processed"
Acc$rate watchin! and notin! down of phenomena, as they occ$r in nat$re or at shopfoor with
re!ard to ca$se and effect, is caed the observation method of data coection"
@nder *ersona Interview Method of coectin! data there is a face7to7face contact with the
informants"
@nder &$estionnaire method, a forma ist of &$estions pertainin! to the s$rvey is prepared and sent
to the vario$s informants"
In case of &$antitative data, the characteristic is meas$rabe in terms of n$mbers and is termed as
variabe"
,ditin! of data inc$des the identification and droppin! of the $nwanted information"
Recordin! of data is the process of storin! the avaiabe data into vario$s homo!eneo$s casses and
s$bcasses accordin! to some common characteristics or ob2ective of investi!ation"
Once the data has been recorded in a partic$ar medi$m, it can be retrieved for its $se in f$t$re"
<-
MANA.,M,NT INFORMATION +%+T,M+
Onowed!e is contin$o$sy constr$cted from data and1or information, in a process that may not be
simpe or easy"
<4