By Dr. Vlad Krotov
Being put simply, a teaching case is a real or fictional story about an organization, its employees, and the issues they are facing. The value of the case study method comes from two broad areas. First, using case studies in class allows students to learn more about real companies – their successes and challenges. This has significant practical value: students can apply what they learn about real companies and managers in their workplace. From a pedagogical standpoint, case studies provide illustrations of class concepts within a real-life context. Second, using case studies allows an instructor to facilitate the development of higher-order cognitive skills among students. These higher-order skills are developed by asking students to apply class material to real-world situations. The material can be applied by finding an instance of a class concept in the case to clarify a situation that the company is facing. Alternatively, management frameworks can be used for analyzing or evaluating the current state of the company, and creating recommendations based on the more prescriptive theories that students learn in class. Each of these valuable dimensions of the case study method is expanded upon in the subsequent paragraphs.
Business is more of a professional field, rather than a hard science like Physics. In professional fields, idiosyncratic knowledge about individuals and organizations is arguably more valuable than knowledge of theoretical generalizations. If this is the case, then business professionals should benefit greatly from past stories of successful (or unsuccessful) companies or managers – just like doctors can benefit from studying prior medical cases and pondering over their patients’ medical histories. Case studies often provide fairly detailed, multi-point accounts of organizations and their employees. This knowledge can help students identify problems and create solutions for their own specific organizations, just like knowledge of prior medical cases helps doctors treat their current patients.
Moreover, these idiosyncratic accounts of people and organizations are often told with the level of detail, complexity, and ambiguity that is close to real-life business scenarios. Anyone with experience working in an organization understands that important organizational problems have many contributing factors and related issues. It is often hard to narrow down a problem to a single factor and suggest a simple solution that targets that factor only. Moreover, the way various factors contribute to an important problem is often not deterministic and highly intertwined with other issues and factors. Thus, it is hard to tell with certainty which factors contribute to the problem, in what way, and to what extent. All these issues make case studies a valuable vehicle for exposing students to the real-world complexity that is often present when dealing with various organizational issues within the real world.
As mentioned earlier, addressing these highly complex and often ambiguous organizational problems requires higher-order cognitive skills, such as the ability to apply, analyze, evaluate, and create (see Figure 1). For example, answering the question of why a particular company is experiencing a decrease in market share may require performing an analysis of the industry that the company is in, using the Five Industry Forces Framework. Similarly, evaluating the company’s current situation may require organizing a number of internal and external factors. Creating and recommending a potential solution requires the ability to understand and contextualize various prescriptive management theories (e.g. pursuing strategies that utilize internal strengths for neutralizing external threats or taking advantage of external opportunities is likely to improve organizational performance). To analyze, to evaluate, and to recommend are all higher-order cognitive skills as outlined by Bloom’s Taxonomy. Case studies provide a fruitful platform for practicing and developing these important cognitive skills among students.
Finally, case studies give students an opportunity to learn how to apply what they learn in class to a real-world situation. Business is largely an applied field. Basic, fundamental theories in Psychology are often applied to manage people within an organization. Fundamental theories of micro and macroeconomics are applied to an organization or industry to formulate long-term strategies for an organization. Basic mathematical models are used in Accounting and Finance. Thus, being able to apply concepts or theories within real organizations for the purpose of addressing organizational problems or pursuing opportunities is an essential skill for any business professionals. Case studies allow students to do precisely that: to practice applying abstract concepts, frameworks, and theories to complex, ambiguous organizational context for the purpose of attaining positive results for the organization.
It should be noted that these important learning goals can hardly be achieved with what seems to be a more common approach to higher education: in-class lectures delivered using PowerPoint slides followed by multiple-choice exams. Multiple choice questions largely test one’s ability to remember discrete facts and not necessarily to understand a complex organizational problem in a holistic fashion. Moreover, multiple choice questions, while capable of assessing one’s ability to apply concepts, often do so in isolation from the complexity and ambiguity of the context within which these concepts are applied. Finally, there is an inherent determinism in multiple choice questions. Only one answer is the correct one. This stands in sharp contrast to the case study approach, where there is no such thing as a “hundred percent correct answer”.
But this is not to say that multiple choice questions are an inherently inferior assessment based on a case study. Multiple choice questions serve a different purpose: to assess lower level cognitive skills, such as the ability to remember facts or understand basic concepts. That is why multiple-choice assessment is so common in lower level, undergraduate, and introductory courses. Also, with some ingenuity, one can create multiple choice questions that tap into the higher-order cognitive skills. For example, calculating the current cash position of a company and selecting the right answer from the list of several choices may require performing a complex analysis of other financial statements. Similarly, case study question may test the ability of a student to remember simple facts about the company described in the case. Thus, there is a considerable overlap between the educational goals of case-based assessment and other, more basic forms of assessment.
Krotov, V. (2002). Case-Based Assessment: A Theoretical Framework and Practical Advice. Profeducation. Available from Amazon: https://www.amazon.com/Case-Based-Assessment-Theoretical-Framework-Practical-ebook/dp/B08BYW9X79
Krotov, V., & Silva, L. (2005). Case study research: Science or a literary genre?. AMCIS 2005 Proceedings, 50.
Bloom, B. S., Engelhart, M. D., Furst, E. J., Hill, W. H. & Krathwohl, D. R. (1956). Taxonomy of educational objectives: The classification of educational goals. Handbook I: Cognitive domain. New York: David McKay Company.