Celebrating General Shoe Company, the Inaugural HBS Case

Summary

The General Shoe Company case, first published in 1921, explores a factory's labor unrest where workers stop early before quitting time. The chief executive must investigate the cause, with potential factors ranging from low wages to inefficiencies in management. Set during a time of industrial upheaval, this case became one of the first to use the case method at Harvard Business School, encouraging students to think critically and ask the right questions in ambiguous situations. Nearly a century later, the case remains a powerful tool for teaching decision-making and problem-solving in business leadership.

Takeaways

• 😀 The General Shoe Company case was the first case study published by Harvard Business School in 1921.
• 😀 The case focuses on a management dilemma where workers at the General Shoe Company leave early, causing operational disruptions.
• 😀 The chief executive's task is to determine the root cause of the workers' behavior, which could stem from various factors, including labor unrest, management issues, or work processes.
• 😀 The situation is described as a 'detective story,' where the goal is to uncover the true cause through inquiry and critical analysis.
• 😀 The General Shoe case takes place during a period of industrialization, labor unrest, and economic challenges, specifically in April 1919.
• 😀 The rise of large industries, such as railroads and steel, created new challenges for management during this time, including labor tensions and wage issues.
• 😀 The case method, as introduced by Wallace Donham, encourages active discussion rather than traditional lectures, focusing on real-world problems.
• 😀 The core of the case method is to engage students in critical thinking, asking questions, and considering alternatives in business scenarios.
• 😀 The skill of managing in ambiguity—gathering relevant information, asking the right questions, and making decisions—is a central theme in the case study.
• 😀 The General Shoe case remains a relevant teaching tool, as it helps students practice skills crucial for general managers, such as problem-solving and inquiry in uncertain situations.

Q & A

What is the main challenge faced by the chief executive in the General Shoe Company case?

The chief executive's main challenge is to figure out why many piece workers are leaving their positions 45 minutes before the end of their shifts, and what actions should be taken to address the issue.

Why has the General Shoe Company case become iconic in business education?

The General Shoe Company case became iconic because it was the first case study published by Harvard Business School in 1921, and it introduced the case method, a key educational approach that remains relevant in business education today.

How does the case method benefit business students?

The case method benefits students by engaging them in real-world, ambiguous situations where they must analyze facts, think critically, identify key issues, consider alternatives, and make decisions, all of which are essential skills for managers.

What are some possible reasons for workers leaving early in the General Shoe Company case?

Possible reasons include dissatisfaction with wages not keeping up with inflation, exhaustion due to hard work, a mismatch in workstations and materials, or inefficiencies in management communication, making it difficult to enforce the work rules.

What does the General Shoe Company case teach about management decision-making?

The case teaches that effective managers must first gather sufficient information, identify the root cause of problems, and ask the right questions before making decisions to avoid acting on incorrect assumptions.

What historical context is important for understanding the General Shoe Company case?

The case is set in 1919, during a period of industrial unrest, wage stagnation, and social challenges following World War I, a time when the management profession was still evolving and the country was grappling with industrialization, urbanization, and immigration.

Why was the shoe industry chosen for the first Harvard Business School case study?

The shoe industry was likely chosen due to its significance in Massachusetts, where Harvard Business School was located, and because the faculty were already familiar with the structure of the shoe retailing industry, which had been studied by the Bureau of Business Research.

What was the role of Wallace Donham in the development of the case method?

Wallace Donham, appointed as dean in 1919, championed the case method and pushed for the creation of practical business case studies, such as the General Shoe case, to help students learn through real-life scenarios rather than traditional lectures.

How does the case of General Shoe relate to the concept of 'ambiguity' in management?

The General Shoe case illustrates how managers must navigate ambiguous situations where the root causes of problems are unclear. Students are required to analyze available information, ask the right questions, and make decisions based on incomplete data.

Is the case method still relevant in today's business education?

Yes, the case method remains highly relevant today as it encourages critical thinking, problem-solving, and decision-making in complex, ambiguous business scenarios, skills that are essential for modern managers.