Case Study Method in Management

Management education is mainly aimed at developing managerial skills in students.

Amongst the various methods adopted in teaching management and management
functions, the case study method developed in 1910 in U.S.A. and is now being
propagated during the last decade or so, providing opportunities to both the teacher and
the taught to promote managerial I understanding and competence, since it helps in
contemplation and discussion of an actual situation. It is a wrong notion that the case
studies are confined to management students. Cases may pertain lo any discipline, where
skills for solving complex unstructured problems or preparing plans are required. The
origin of case study methods itself can be traced to Harward Lawyers. Cases may
describe problems facing individuals, groups, institutions or even Nations.

Through a case study one learns a broad range of skills and has many alternatives. Case
studies encourage the practice and attainment of analytical and communicative skills.
Case studies allow a different kind of learning. It is close to the learn by doing' approach.
Cases are intended to stimulate the reality of the manager's job. The material in the case
provides data for analysis and decision-making. Cases require the student to make
decisions about the situations presented and to defend those decisions. In real decision-
making the student will have lo persuade superiors that his analysis and solutions are the
best and hence the communication and interpersonal skills are vital to success in
management. Cases provide the opportunity lo improve these skills.

A case is defined by Reynold as, "a short description in words and numbers, of an actual
management situation". It describes the present and past position of the situation and the
problem that is posed. All the data are provided. A case consisting of the history of the
situation may be small or lengthy. Small ones may be lacking particulars and hence, may
be taxing with more assumptions than realities, while lengthy ones may not project the
conflict correctly and therefore solution may seem easy because there are not many
alternatives. All available information may not be sufficient and at the same time of
analysing a case, further information may have to be injected by reasonable assumptions
about the unknown.

A written case study can be anything from 300 to 6000 words long. The length depends
on the purpose for which it is being used, type of participants and availability of time.
The parts of a case study generally are:

1. Subject : Motivation.
2. Setting : The office of the vice-president (Personnel)
3. Data : Nature and number of complaints received by the department.
4. Background :Type of complaints – low productivity, depressed morale of
employees / workers.
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#1. Types of Case Studies

1. Informational type case studies:

These, include a variety of items like working environment, inter-organizational context,
coordination, activities, problem areas, history of events, inhibiting factors on, decision
making, etc.. This type increases 'awareness' about the environment and helps in the
decision making process. This also helps in the evaluation of consequences of a decision.

2. Appraisal cases;
These involve problem solving and decision making process,

3. Historical cases:
These involve research and educational interests.
4. Project cases:
These are radical educational processes involving
interessts.

5. Live and experimental cases or Functional cases:

Social welfare rehabilitation or introduction of ideas and analytical concepts form the
basis for these cases: These types of' cases help-to analysing psycho/ social problems like
drug addiction, alcoholism amongst workers, etc."'

# 2. Objectives of the Case Study Method

The habit of logical thinking and conceptualization can be developed through a
systematic study of cases: Analysis of cases enables arguing view points with peers and
this again develops good communicative skills. The case study method of learning helps
in developing skills on alternatives and decision-making. Case studies develop 'creative'
problem solving techniques.

According to Geofftaston the following six major skills areas are developed through case
studies:
1. Analytical skills·
One learns to classify, organize, and evaluate the information handled. Using this
information one attempts to understand the situation described. This is, however,
fraught with the danger of not thinking logically when the information is taxing.
2. Application skills
This is useful at a lower level where concepts and principles, are applied, e.g.,
discounted cash flow.
3. Creative skills:
When cases cannot be-solved by logical process alone creativity is a vital quality for a
manager and is more useful in decision-making.
4. Communicative skills:
By writing well-constructed reports, analysis and by discussions, both written
and„ oral communicative skills are developed.
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5. Social skills:
Case discussions are essentially a social process. One learns to
communicate, listen, support, argue, control oneself, etc. In fact, there is a belief that
case courses are more a study of human behaviour than problem solving.
6. Self-analysis skills: A case is always useful in application of the situation to
oneself and one can analyse the situation with reference to oneself. Thus, it helps in
self-improvement.

# 3, Case Study and Different Areas of Management:

The cases of management cannot be properly analysed and solved unless the
student has a thorough knowledge of die subject. The cases of General Management may
be on the functions of management like planning, co-ordination, organization, control and
decision-making. The cases also relate to the principles of management like division of
labour, centralisation and decentralization of authority, span of control, equity,
remuneration, unity of direction, unity of command etc. While solving the case problem
the student must be able to know to which function or principle of management the case
relates. It will enable the student to analyse the case properly as he becomes clear about
what is 'required "as per functions or principles and what is lacking in the given situation
of the case.

The cases of Personnel Management relate to recruitment, selection, induction,

placement, wage and salary administration, promotion and transfers, career planning and
development, job evaluation, performance appraisal, merit rating, job enlargement,
disciplinary actions, motivation etc. The student must know the exact meaning of these
concepts and procedures in detail and the practices in vogue for implementation of the
same. Unless he knows it thoroughly, he may not be able lo pin point the departure from
standard practice, procedure or precedent and suggest remedial steps to restore the
position.

The cases of Industrial Relations and Trade Unions consist of Industrial Relations,
Industrial Disputes, efficiency of workers, payment of wages, bonus, collective
bargaining, negotiations, strikes and lockouts, code of conduct and discipline, grievance
procedure. The student must know the provisions of the various labour legislations to
suggest proper action for resolving the problem given in the case.

There cannot be watertight compartments for various types of cases. The cases of General
Management, Personnel Management and Industrial Relations are often intermingled,
e.g.„ the case of Organization Structure and Promotion / Transfer, Organization Structure
and Delegation, Delegation and Industrial Regulations, Career Planning and Wage
Structure or Promotion. Job Enlargement and Strike etc. While solving the case problem,
the student should know for which area of management he is solving the case problem
and thus proper emphasis should be given on the selected aspect of. the case and analysis
should be done on those lines only.
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# 4. Analysis of Case Problem:
The case can be analysed from different points of view. Usually there are four parties
involved in the case, viz., the proprietor or top management, the middle management
departmental heads, the employees or workers and finally the society in general (it
includes consumers, distributors, investors, potential employees and those who are
directly or indirectly affected by the organization), which is mostly disguised. While
analysing and suggesting solutions, the student should try to look at the case from these
different points of view and try to pin point violation of rules, regulations, code of
conduct or precedents in vogue. The solution to be suggested must be in the larger
interests of safeguarding the provisions of laws, code of conduct, rules and regulations to
restore the normal positron. The solution should be in the interests of the organization,
the weaker sections of the organization and society in general.

While analysing the case, the social, economic and political environment should also be
taken into consideration, e.g. the background of poverty of workers, illiteracy in the
country, outside political interference in trade union activities, lack of job opportunities in
the country for labour mobility, liberalisation of the economy, impact of democratic
principles on workers etc. Many times, the problem in the organization is created due to
such outside factors. If the student is aware of these factors/situations, he will be able to
analyse the case in its proper perspective and suggest a practicable solution.

The student should quote or give definitions of the authorities in Management Science or
Economists in support of the suggested solution. The related provisions of various labour
legislations should also be given correctly. The references to various theories and their
inferences e.g. Maslow's Theory of Hierarchy of needs etc. will certainly improve the
quality of the analysis and the suggested solution.

Case study method for personnel problems presents some typical difficulties. It is always
difficult to get the facts - people in the same situation interpret and present them in
different ways depending on their attitude and background.

Skill is required lo inquire into what has happened or what people really want. The issue
is frequently not clear for want of defined policies or procedures. It may also be difficult
to establish objectives. People within the organization, including the top management,
very often do not know what they want. Their needs are obscure and need to be defined.
The case contains too much information, which is to be analysed. There is every
possibility that the analysis may be useless. Judgment is necessary to study the evidence
and to decide relevant points. Where human beings are concerned, symptoms cannot be
easily separated from causes.

It is always necessary to take into consideration the past decisions, because there may be
precedents. But there is much danger in being too concerned about past decisions. With
the change of time, the circumstances also change. Decision should be made in the light
of an objective analysis of the facts, not simply by reference to what has gone before.
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It is always difficult to ignore the precedents but at the same time the wrong decisions in
the past need not be continued. Precedents are important when dealing with personnel
and industrial relations problems and care should be taken not to create a bad precedent
for the future.

Personnel problems cannot be solved in a clear-cut manner. Situations involving people

can rarely be seen in black-and-white terms. While solving personnel problems adopt an
analytical approach to decision making but, in the end, you will have to rely upon your
judgment in deciding on a course of action, which seems to be the best alternative
available.
According to Raymond, the analyst should try to seek answers to following questions:
1. What is actual problem involved in the case?
2. What are the relevant facts?
3. What are the crucial unknown aspects of the scene?
4. What are the major critical questions related to each specific event?
5. In what ways can logic and reasoning be used lo determine crucial inferences,
connections and relationships?
6. In what manner can contradictory facts and arguments be weighed in making
decisions?
7. What should be the proper timing of decisions?
8. In what ways can those decisions be best executed?

Schnells has given a ten-point model for solving case problem:

1. Identification of the problem.
2. Determination of facts.
3. Ascertainment of alternative courses of action.
4. Analysis of advantages and disadvantages of the alternatives.
5. Assessment of advantages and disadvantages of the alternatives.
6. Prediction of concurrent advantages and disadvantages.
7. Selection of best alternative.
8. Execution of the decision.
9. Filing the problem solution. '
10. Comparing expected results with the actual results of lhe decision.

The steps suggested by Schnells are more useful for students and trainee executives to
tackle case problems in practical life. They find opportunities; to put their own decisions
lo test and verify the results. The case study serves two purposes:

Firstly, the students or trainee executives have to face similar cases in future life as
executives. The case will tell them how incidents lake place, how there may be deep
causes underlying the apparent expressions of happiness, distress or unconcerned
altitudes and what can be done, as well as when and how to rectify the situation.
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Secondly, the case study provides lest material where the student can apply the principles
he has studied so far, and test their validity. It gives confidence to the student, which will
be of vital importance to him as an executive.

§ 5. Written Analysis of the Case Problem:

There is a little difference between the classroom discussion and written analysis of case
problem. The following steps can guide the students to analyse the case problem and
arrive at best possible solution.
1. Summary of the case: The important facts in the case are pointed out in brief. It is the
indication that the student has grasped the contents of the case precisely.
2. Identify the problem involved in the case: After giving a careful reading to the case,
see certain apparent problems in the situation. Some are very prominent and most
immediate. Whereas some may be partially indicated. The student has
to mention the basic problem interwoven in
the case, e.g. a case may indicate failure in delegation due to too much interference of the
boss; another case may indicate the need for taking appropriate disciplinary action to set
things right with regard to labour management relations or Stale policy in respect of
minimum wages etc. Such basic problem should be set out in clear terms. The problem is
usually related with some basic principles of management or industrial relations. The
student may indicate such principle basic to the main issue.
3. Analysis of the case: The case should be read carefully because each sentence may
present an important fact. Some details in the case are directly or indirectly responsible
for the problem situation presented in the case. The facts may concern resources, plans,
people, actions, inter-relationships, industrial disputes, efficiency of workers, collective
bargaining etc.

There are certain crucial issues related with the main problem. They must be identified
from the facts of the case e.g., in a case of communication; finding out an appropriate
communication medium to inform about a major policy decision may be the major
problem. But the case may have several other facts like language barriers between the
boss and the subordinates, past experience of the subordinates and their tendency to
interpret communication in a particular manner, problem in communication due to too
many levels, effect of non-participative techniques of decision making on communication
etc. When all the problems and their relationship with the main issue is established, all
the facts of the case will be clear. While making such analyses, students may show what
kind of relationship exists between different arsons and activities and what factors are
likely to be responsible for the problem. Usually an organization chart is drawn to
indicate exact formal relationship between different characters in die case. Positions on
the organization chart also indicate the likely consequences of an action taken by a
particular individual.

In the case of wage problem, the student may try to get answers to the following
questions in order to assemble facts of the case:
 What are the types of wages? (living wages, minimum wages, need based
minimum wage, fair wage etc.)
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 Which facts determine the wages? (nature of work - skilled, unskilled, technical
and table work - use of machines, extent of automation, elasticity of labour
supply, wage policy)
 What recent changes have taken place in national wage policy? The facts like
wage structure in different industries, different locations and the requirement of
type of skill should also be taken into consideration while analysing the case.

4. Alternative solutions available: When the student has identified the problem, he should
go on listing the various alternatives that come to his mind one after another. The
students need not give a deep thought to each alternative at this stage. Student should
look at the problem from various points of view and different interest groups. Each facet
of the problem may suggest a number of alternatives to the student. He has only lo
enumerate them, e.g.. if the main problem is decreasing morale of the work group due to
unfair altitude of an employee in group, several alternatives are : ignoring the issue,
reprimanding the employee concerned, discussing the issue with him in confidence,
asking him to go on leave for few days, taking disciplinary action, transferring him lo
another department, asking him to resign on his own etc. The alternative solutions range
from very simple measures to very harsh action. The alternatives need not be listed
according to desirability of action. The alternatives will come to the mid of a student like
a spontaneous flash of lightning, once the process gets started.

5. Analysis of the alternative solutions: After listing all the possible alternatives, the
merits, demerits and consequences of every alternative are judged and evaluated against
each other. Continuing the same example, if a manager chooses to ignore the
unwarranted behaviour of, an employee, things may get smoothened automatically and
no ill-will will remain in the mind of the concerned employee, but there is also possibility
that employee develop a feeling that every thing is tolerated, of they may draw an
inference that the boss favours the said employee or the boss does not have the boldness
to reprimand him. Different alternatives can thus be evaluated in the light of their plus
and minus points, their immediate and far reaching effects and then the students may
point out which of them could be taken in to account, and which of them need not to be
considered.

To maintain the status quo or to continue the situation as it is, should always be the first
alternative solution. Not to take any decision on issue is the best solution to the problem.
Time takes its own course and the normal situation is rectified / restored automatically, or
let the situation deteriorate further. But while analysing this alternative solution, the
student should state how it is advantageous if the situation is continued as it is. Give the
merits of the alternative solution.

The student should also give the disadvantages / demerits or limitations of the alternative
solution. If the situation given in the case is allowed to continue, how it will further
deteriorate and damage the interests of concerned parties, e.g. if the employees are on
strike and the status quo is maintained, the strike will be continued resulting into loss of
production and ultimately loss of market.
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In another example, in the given case if, the morale of employees is depressed and the
status quo is maintained, it will result in employee frustration, affecting their productivity
resulting into increased labour turn over rate and / or absenteeism. After taking into
consideration the adverse effects of the alternative solution, the student should not advice
it as a final solution.

6. Choosing the right alternative: Out of several possible alternatives, the student has to
pin point, which in his opinion, is the best possible alternative. When he mentions that a
manager should have taken a specific decision at a certain stage, he may also say whether
the manager could have avoided the situation by acting in a particular manner at an
earlier stage of the event He has to suggest an answer, or a way out from the problem in
which the executive has ultimately landed. The student will have to justify why he is
pleading for a particular solution and not another one by explaining all its aspects. The
alternative that he is suggesting may have certain limitations, e.g., if he suggests written
instructions as a solution, illiteracy of some of the workers may be a limiting factor. To
make the solution workable, he will have to suggest a certain educational standard (o be
introduced in recruitment policy.

The final solution the student suggests should be in accordance with legal and other
statutory provisions. It should be objective, impartial and fair to all concerned. It should
be economical as well as practical. It should be in harmony with other decisions and with
the accepted ethical standards.

At the end of the case, some points, issues or questions are given to ensure a focus
and predetermine the direction in which the discussion will go. While solving a case
problem the student should not simply answer these questions. In the examination,
these points, issues or questions help the student to focus on a particular angle.
These points, issues or questions should be used for analysing the case problem. The
case problem must be solved through the steps given above and after giving the final
solution; the student should answer these questions, if (necessary) specifically asked
for.

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