Action research is disciplined inquiry to improve the quality of an organization and its performance. It is a method for improving practice in which one collects data to diagnose problems, searches for solutions, takes action, and monitors how well it works. Action research is characterized by groups of colleagues working together for systematic inquiry. In effect, the research is defined by the practitioners and conducted by those who want to improve their own situation. There are three types of action research: (1) the scientific method of problem solving; (2) the practical-deliberative action research; and (3) critical-emancipatory action research. The key to selecting the type of action research depends on the purpose of the inquiry. The process of collaborative action research begins with identifying the problem. This is followed by data collection planning and the actual collection of data. Data analysis follows, with the reporting and sharing of results with colleagues. The final step is working out a plan for action that incorporates what one learned from the inquiry. The strength of action research is that employees of a system work together to find their own solutions to problems so that they buy into the solution and feel ownership. (Contains 23 references.) (SLD)