“A single, well-designed case study can provide a major challenge to a theory and provide a source of new hypotheses and constructs simultaneously.”
—Donald R. Cooper and Pamela S. Schindler
The case study method of teaching management issues and solutions is a crucial component of the modern pedagogy of business schools. Students and faculty spend a lot of time finding the perfect answers to the issues raised in a case. Their concern for reaching a logically satisfying solution is genuine, but they should all be informed by Amartya Sen’s description of a hypothetical situation in his book, The Idea of Justice. In his book, Sen describes three children’s demands for a flute. One child claims that she deserves the flute because she made it; the second says she deserves it because she has no toys (while the others do); and the third claims she deserves it because she can play it best. The question of who should get the toy remains: its maker, its player, or the child who has no other toy? The decision-makers could decide to give the flute to any one of the children, but who can tell what the right solution to this problem is?
Upon completion of this chapter, you should be able to:
Know the nature and types of case studies.
Understand the process of case analysis.
Identify major problems/questions involved in a case study.
Know how to consider alternative solutions to the questions raised.
Write out the findings of the analysis—a statement of the problem, the logical framework, consideration of the alternative solutions, and final decisions.
A case is a written account of real or simulated managerial problems, dilemmas, and situations calling for solutions. Case analysis is an exercise in critical thinking and understanding of concepts and causes of problems and events. Broadly speaking, a case can be divided into theoretical and factual cases.
Know the nature and types of case studies.
An important characteristic of a factual case study is that it presents a problem/event in its entirety, explaining all relevant causal relationships. In life, nothing happens in isolation. Interlinked events offer a kind of intersection between causes. The case study requires the application of analytical reasoning to the main problem and its best solution. The case of communication breakdown at City Hospital discussed in Chapter 2 illustrates a problem of managerial protocol.
Before we go into the actual process of case analysis, it is necessary to understand some characteristics of cases and their analysis.
The process of case analysis requires methodical study. This section describes the various stages of case analysis.
Understand the process of case analysis.
First, a case analysis requires an understanding of the case and its context. This involves a comprehensive study of all factors at the organizational level that may be responsible for affecting working conditions and performance levels. Therefore, the first step is to know the goals, objectives, and structure of the organization. One can start by quickly reading the important points of the case and understanding the general drift. This should be followed by re-reading all the material and slowly taking note of important issues, facts, and ideas.
After reading over the case, the next step is to identify the main problem and discover the relationships between the problem and the factors responsible for it. Critical analysis and insight should help the analyst distinguish between the problem and its symptoms. For example, frequent strikes in a company can be viewed as a problem, as they cause dislocation in so many ways. But strikes are actually symptoms of a deeper problem in the organization: its work culture, system of promotions and rewards, and its goals and objectives. Hence, the analyst should identify the real problem, as distinguished from its symptoms.
Identify major problems/questions involved in a case study.
The problem should be formulated in precise words. For example, in the aforesaid case, the problem could be defined as, “Low productivity owing to frequent labour strikes in the factory”.
In linking facts in causal relationships, any assumptions that have been made must be stated clearly. These assumptions form a part of the hypothesis that will be tested for validity.
The next step is to state the relevant facts of the case and establish logical links between them. Here one should remember that facts are not opinions. Facts are the basic data obtained through investigation and study of the work environment and other industry-related factors affecting the problem to be resolved. For example, in the aforesaid case, the facts could be that in the second quarter of the year, production was lower by 40 per cent, meaning it came down by 8,000 units when compared to the previous year, in which there were no strikes. This year, there were two major strikes in the second quarter alone. When linking facts in causal relationships, any assumptions that have been made must be stated clearly. These assumptions form a part of the hypothesis that will be tested for validity.
The next step is to suggest various possible answers and solutions to the problem or questions raised in the case. According to experts, at least three to five alternatives should be generated, ranging from “most viable” to “least viable”.
Know how to consider alternative solutions to the questions raised.
Next, each solution must be evaluated in terms of its relevance to the organization’s objectives and the decision to be taken. The analyst should compare the various alternatives and decide on the best course of action to recommend. The alternatives can also be scrutinized in terms of their utility over time, that is, in the immediate term, intermediate term, or long term.
Lastly, the analyst works out a plan to implement the recommended course of action. It is only when a plan of action is developed that one can check whether all the aspects of the problem have been addressed.
To understand the requirements for a case analysis, let us go back to the Devox case: The Profile of an Effective Communicator. This case analysis has been deliberately placed at the beginning of the book because it introduces all the essential principles and characteristics of effective oral, non-verbal, and written communication—it is almost like a summary of the book. We can use this case to examine the requirements necessary for a thorough and insightful case analysis.
Write out the findings of the analysis—a statement of the problem, the logical framework, consideration of the alternative solutions, and final decisions.
The following are the key requirements of a case analysis:
When ideas are taken apart, each component can be discussed separately. This results in connections being made among the components and new relationships and interactions being established.
To analyse means to break something down into its constituent parts. It involves more than just describing something. When ideas are taken apart, each component can be discussed separately. This results in connections being made among the components and new relationships and interactions being established. This allows us to examine the validity of the logic used to establish these relationships.
Another example of written analysis of a factual case is Communication Breakdown at City Hospital, which is given in Chapter 2. This case was discussed by nearly 300 groups of executives at several executive development programmes. The candidates were given enough lead time to understand the case thoroughly and answer the following questions:
Answers to the first question (“Why did the situation worsen with the rumours of layoffs?”) include the following common points:
Here are some examples of answers to the first question.
Example 1: Prima facie it seems that the inclusion of Lily Joe in the meetings was the primary reason for the spread of rumours. However, it cannot be said with certainty that other members in the meeting would not have spread the news, since the decision would affect a number of fifth-floor employees. The very fact that members were sworn to secrecy would be enough to fan the flames.
Example 2: The reasons for the worsening of the situation due to widespread rumours could be:
Example 3: The reasons for the rumours regarding layoffs of the observation ward employees could be:
The spreading of rumours via the grapevine suggests that the management missed an opportunity to share information that was of interest to employees. This poses a challenge to the management’s effectiveness and the organization’s human resource management system. Normally, management views the grapevine negatively because it tends to breach confidentiality and secrecy, and often results in the spreading of false rumours and negative information. However, sometimes the management itself may want to take advantage of rumours to gauge the likely reactions of the concerned employees to a proposed change or scheme. In this case, the communication gap happens because the decision was taken at the “top” and the implementation was desired from the “bottom”.
Normally, management views the grapevine negatively because it tends to breach confidentiality and secrecy, and often results in the spreading of false rumours and negative information.
Answers to the second question, “Was it correct to include Lily Joe in the initial discussion meetings?”, can follow two directions. One view is that it was right to include Lily Joe in the initial meeting because the management was taking a decision affecting the staff of the fifth floor, so involving those whom the decision affected was crucial. Lily Joe, being their head, could contribute to the decision. Protocol demanded that she be involved in the meetings. In addition, including her would send her the message that her opinion was still valuable. According to this view, her attending the meeting is a perfect example of participative management, where employees are called to put forward their views. This approach helps the management obtain a holistic view of the situation.
However, an opposing view is that it was incorrect to include Lily Joe in the layoff meetings, even at the initial stage, because she was directly affected by the layoff plan. She did not contribute to the discussion. In fact, her participation created further problems because she herself was part of the problem, but made no contribution to the discussion.
A case study does not illustrate the dilemmas of an individual. It presents problems that an organization faces because of the failure of its systems.
A case study does not illustrate the dilemmas of an individual. It presents problems that an organization faces because of the failure of its systems.
The closure of the observation ward seems to be an easy solution to the problem, but it is misdirected. The executive director should have first prepared a plan to reduce staff across the hospital, instead of abolishing the fifth-floor unit. And after deciding on the number of employees to be dropped, after “reassignments” at the hospital level, general options should have been asked for from all the employees of the hospital and not of “observation ward” employees only.
The executive director should also have kept in mind that the hospital had a policy of reassignment rather than layoff, and thus had a commitment to placing the fifth-floor staff in other positions for which they were qualified. Just as fifth-floor patients were to be reassigned to other units, the staff of the fifth floor should have been reassigned too. In addition, new recruitment should have been stopped for some time. The action plan should have involved the following steps:
The two examples of case analysis discussed here are only suggestions of how cases analyses can be carried out and are not prescriptive. A case analysis should be a well-organized piece of analytical and evaluative writing that reflects the analyst’s critical thinking on the relevant information and ideas.
The writing of a case analysis follows a sequence of steps. Like a project report or an investigative report, a case report presents the process, findings, and recommendations of the analysis in an organized form, under distinct headings and sub-headings.
The main parts of the written analysis are:
Solution 1: Fire the employees who engaged in violence during the strike.
Merits: The company will be justifiably free of trouble-makers.
Demerits/limitations: They might be some of the most productive workers otherwise; this might also further escalate the situation.
The executive summary is for helping decision-makers understand the problem and its possible solutions without going through the entire case analysis. It is, therefore, placed at the beginning of the written analysis.
A computer services company was negotiating a very large order with a major corporation. They had a very good track record with this client. Five different departments in the corporation had pooled their requirements and budgets, and a committee that had representation from all the departments was formed. The corporation wanted the necessary equipment on a long lease and did not want to make an outright purchase. Further, they wanted all the hardware and software from one supplier. This meant that their supplier would need bought-out items from other suppliers, since no one supplier could meet all the requirements from its range of products.
The corporation provided an exhaustive list of complex terms and conditions and pressured the vendors to accept their terms. The computer company that was finally awarded the contract had agreed to the overall terms as far as their own products were concerned, but had also accepted the same terms for the bought-out items. In this case, the bought-out items were to be imported through a letter of credit. The percentage of bought-out items vis-à-vis the company’s own products was also very high. One of the terms accepted was that the “system” would be accepted over a period of 10 days after all the hardware had been linked up and the software loaded.
The computer company started encountering supply troubles immediately. There were over a hundred computers connected with one another through software. For the acceptance tests, it had been agreed that the computer company would demonstrate, as a prerequisite, the features they had promised during technical discussions.
Now, when a Hero Honda motorcycle claims 80 km to a litre of petrol, it is under ideal test conditions, and if a motorcycle from the showroom were to be tested for this mileage before being accepted, it would never pass the test. In the corporation’s case, due to internal politics, the representatives from one department—who insisted on going exactly by the contract—did not sign their acceptance since the system could not meet the ideal test conditions.
Further, in a classic case of “for want of a horseshoe, payment for the horse was held up”, when the computer company tried to get the system accepted and payment released, they could not. The system was so large that at some point over a period of 10 days, something or the other always had problems. But the corporation took the stand that as far as they were concerned, the contract clearly mentioned that the system had to be tested as a whole and not module by module.
Questions to Answer
Revisit the Devox Sports Shoes & Sportswear case and discuss what, according to you, would be the best way to satisfy Mr Oberoi as well as guard the company’s policy. Give a strategic analysis of your solution.
From the given options, please choose the most appropriate answer:*