Case Teaching in
Personnel Economics
Joseph Cooper & Mike Gibbs
Personnel Economics
Summer Camp, 1998
Lectures & Cases:
Use One or Both?
Method
Deductive
Inductive
– definition
axioms, theory
– discipline
economics (theory)
– teaching style
lectures
empirical, clinical
sociology, etc.
cases
Properties
– generalizability
– realism
high
low
low
high
 relevance
medium
medium
– internalization
– efficiency
low
high
high
low
 teaching
effectiveness
medium
medium
Combination
of lectures & cases
 relevance &
teaching effectiveness
High
2
Objectives
 Illustrate
case teaching
– through some favorite cases
» teaching ideas
» recommend other favorites
 Discuss
integrating cases with
Eddie’s text & Instructor’s Manual
 Discuss
running a case course
– design, mechanics, exercises, etc.
 Discuss
running case discussions
3
Some of Our Favorites
 Pennsylvania
Pharmaceutical
– MBA resume exercise
 Roy
article + Lincoln Electric
 Bennett,
 Sedalia
Strang & Ferris
Engine Plant
4
Process
 What
we ask of you*
– prepare thoroughly
» assignment Q’s in packet




day 2 (Roy):
day 3 (Lincoln):
day 4 (BSF):
day 5 (Sedalia):
A-H
I-Mi
Mo-P
Q-Z
– preserve spontaneity
» ignore Instructor’s Manual case
write-ups before discussion
– participate actively
» in & out of case discussions

 Cases
(keep same seat all week)
are … different
5
Penn. Pharmaceutical:
Summary Points
 Epilogue
 Assessment
of case
– other “careers” cases
» UPS
» Hewlett Packard
» IBM / Nippon Steel
» Webster Industries
 Mechanics
of resume exercise
 Other points
– use both lectures & cases
– cases are different
– case teaching raises different
pedagogical issues
6
Conducting Courses
with Cases
 Organize
– know your strategy
» anticipate sensitive issues
» keep in mind your lesson plan
– prepare battle plan
» name cards
» amphitheater classroom
» seating chart / grading participation
» white chalk
» HBS teaching notes
7
Roy:
Summary Points
Academic papers & news articles can
often be used for excellent discussions
 Economic theory can help structure
case discussions

$
$1.25/hr.
Piece rate
$.85/hr.
(day rate)
Bogey
}
Goldbricking
(stinker jobs)

Ratchet
effect
Output
Quota
Restriction
(gravy jobs)
Contrasting 2 cases can be very effective
8
Lincoln Electric:
Summary Points
 Epilogue
 Assessment
of case
 Other points
– implementation of even simple
theoretical ideas can be
complicated in practice
» complementarities
– good (or bad) personnel policies
can have significant effects on
firm performance
– “trust” / implicit contracting can
be important in implementing
incentive schemes
9
a. Seniority-Based Incentive Compensation
$(points)
Pay
return
VMP
•
investment
Seniority
T
b. Performance-Based Incentive Compensation
$(points)
Performancebased plan
BSF’s
incentive plan
Seniority
Performance
measure i
BSF:
Summary Points

Epilogue
– lawyer scores
»
»
»
»
»
»
»

B: 112
C: 90
D: 100
E: 97
F: 155
G: 112
H: 175
80-140
75-100
82-110
80-110
130-190
95-132
128-210
There are a wide variety of possible
in-class exercise formats
– [exercise topics: point allocations; system design]
–
–
–
–
–
–
“buzz groups”
role playing
“committee” report
opener presentation w/ class critique
poll on ranking of lawyers, quiz outliers
plot rankings on numeric scales on board
11
BSF:
Summary Points: The Sequel
 Assessment
of case
– other incentive or compensation cases
» API, Star Cablevision
» Merck; LEP; Megalith / Hay Associates
» General Dynamics, Cotag
» Altex Aviation
 Other
points
– cases can point to important technical
& social issues that theory & lectures
are unlikely to emphasize
» can motivate lectures on advanced
theoretical concepts
– cases often generate powerful
“internalized” learning
12
Sedalia:
Summary Points
 Epilogue
 Assessment
of case
– other “teams / empowerment” or
organizational design cases
»
»
»
»
»
Sedalia Revisited*
Continental Can Co. of Canada*
Portman Hotel, People Express
New Tech. & Job Design in a Phone Co.
Corning Glass Works, Altex Aviation
 Other
points
– Teaching topics on the edge of personnel
economics is challenging but rewarding
– Interdisciplinary approaches can be
helpful supplements to economic analyses
– But personnel economics can provide
structure for such cases
13
Running
Case Discussions
 Sequencing
cases
– within a course, module
– opening & closing cases
 Writing
your teaching plan
 Don’t force-fit cases
 Lecture before or after the case?
 Classic ways to run a discussion
– contrasting a pair of cases
– the gangplank method
– abstract  action questions?
14