Management Training And Leadership Education In India Business Essay

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Management and Leadership education is an important aspect of ameliorating the competence of managerial adeptness in any economy, and leadership aptitude is a compulsory condition for successful economic development. From the commencement of the economic revolutions, the People's of India has recognized this need. However, ideological issue/concerns, a rather narrow interpretation of management, absence of a decisive education policy on management education and training, and majorly lack of qualified faculty have stifled the development of managerial aptitude. The worsening fate of the regime enterprises has been linked to a shortage of qualified managerial personnel and that shortage perpetuates to be a key operational concern for foreign companies establishing operations in India.

This paper traces and describes the historical development of management education and training in the India, and explicates the current state of affairs. An analysis of political, structural, policy and attitude issues leads to the conclusion that problems remain which could severely hamper India's perpetuated program of economic reform.

This paper looks forward to gain the attention of readers towards the commercialization of education on one hand leading to rise in the number of institutes and the relevance of these novice institutes on the other hand. It draws from literature and secondary data available on the web substantiated by viewpoints of different stakeholders related to this field. The subject of focus is management education.

Introduction

"Education must provide life-building, man-making, character-making assimilation of ideas."

-Swami Vivekananda

A community is like a ship; everyone ought to be prepared to take the helm.

-Henrik Ibsen

The final test of a leader is that he leaves behind him in other men the conviction and the will to carry on.

-Walter Lippman

What makes leadership is the ability to get people to do what they don't want to do and like it.

-Harry Truman

Leadership and learning are indispensable to each other.

-John Kennedy

In nineteenth century, Swami Vivekananda encouraged that education should elevate for building the strong team spirit not just for integrated growth of individuals. Education is a way to ensure good monetary and morally benefits. Regardless of all glamorization in education, it is suggested that the way of doing all these should be right- both ethically and commercially.

MANAGEMENT is the backbone of any organization/administration in today's competitive world. The management education industry has grown to more than US$20 billion and is growing perpetually with a rate of 10-12% per annum. All leading business institutes have also supported competitive advantage in business to nations through contributions in best management practices. The GCI (Global Competitiveness Index) created by World Economic Forum has included the quality of management school as one of its deciding variable and CII India is a partner institute. As per UNESCO (2006) report, the largest contingent of students studying abroad emanates from Asia Pacific (29%) followed by Western Europe (17%).

Another trend in management education has been elevated in private sector education. Students rate education on the basis of curriculum, faculty, adeptness development and placement. On the other hand, industries expect the best aptitude to fulfill their needs.

The inception of management education in India dates back to the middle of the nineteenth century. It came along as a result of the reviews, reforms and recommendations of initiatives like the Education Commission (1882), Universities Commission (1902), Indian Education policy resolution (1904), Governor General's policy statement(1913), Calcutta University Commission of 1913, Central Board of Advisory Education (1920), The Hartong Committee (1929), The Sapru Committee (1934), Zakir Hussain Committee (1937),Technical Education Committee of the Central Advisory Board of Education (1943), Sergeant Report of (1944) etc. taken up during the evolution of the present Indian higher education system. With the rapid industrialization of the economy after independence in accordance with the vision of the then Prime Minister, Pandit Jawaharlal Nehru, the ordinate dictation for other professionals grew. Investment in large, capital intensive industry like steel, fertilizers, machine tools, hydro projects etc created an ordinate dictation of well trained managers to handle these ventures. Thus, the commencement of the present day formal management education system optically discerned the light of the day. (Nangia,Vinay,Ritika : 2012)

It is not that with the development of management education commenced in India recently, it was being practiced since ages. With the commencement of civilization in India the development of management skills emerged. The town orchestrating and administrative arrangements for the management of drains and dehydrogenate monoxide supply which we optically discern in Harappa and Mohenjo-Daro cannot be experienced in some components of India or world even today. The administrative structure was very sound from the period Rigvedic and Later Vedic. With the establishment of the British Empire and after liberation the framing of the constitution laid the foundation of the administrative organization and management in India. Thus we optically discern that management be it in any field has always experienced changes and accentuated on its importance and organization.

History

Management concept is not new as this was formulated with initial phase of civilizations of the world. All religious texts books from Buddhist, Jain, Hindus (Vedas, Epics, Smritis, Puranas etc) and review from foreign traveler gives us a glimpse of management in ancient times as well. All Epic text such as Rigveda, Brahamanas, Dharmasutras, Dipavamsa and Mahavamsa gives a vivid description of the managerial skills available in that time. Chankya, who was associated as prime minister of Chandragupta Maurya laid the foundation of modern management in India. A thousand year old text, Srimad Bhagvat Gita gives us a lucid description of managerial techniques, harmony and conflict resolution and increase productivity.

In India, management education is a purpose of economic structure, development, politics and ideology. Not surprisingly, most historical accounts of Indian management training and development align periods of evolution with major events in the political development of India. We will follow this tradition and briefly review the pre-1947 situation, the period 1947-1990, and describe developments and relevant government policy since 1990 in some more detail.

Pre-1947

The history of education in the India is quiet variable as India demonstrated a dense educational network with a Western curriculum. Many ambitious, rich and upper class men including Gandhi, Nehru and Jinnah went to England to obtain a legitimate education.

In India, Business education has a long history from 19th century. Early Business and Management Schools were mainly focused on the commercial side of business to fulfill the needs of the then British government. In year 1886, first B-school names as Commercial School of Pacchiappa Charties was Madras (Now Chennai). In 1913, first business school for graduate courses was founded in Mumbai (Sydenham College) followed by another college in Delhi named as Commerce College (SRCC, New Delhi) in 1920.

1947 - 1990 era

After the independence in 1947, the establishment of India had profound results for country's economic structure, manager's role and the emerging management education system. At the commencement of the 50's, India commenced a large-scale industrial expansion and reorganization and by the year 1980, major enterprises (banks, insurance, coal and aviation) had become nationalized, and were operating under mandatory central orchestrating. Managers had to act as skilful implementers of a pre-defined central plan. The skills they needed for this task were primarily operational and technical.

Public-owned enterprises were cornerstones in achieving the uniformity; provided security and social welfare to their employees. Accordingly, managers also had to be skilful 'people-handlers' and convincing ideological educators. For management education the picture was dreary; Indian universities were not able to handle these requirements and demand was getting increased day by day.

In 1948, Indian Institute of Social Science founded to start India's first management program with an intention to train manpower required for managing industrial enterprises in India. During that time only, Catholic community founded XLRI at Jamshedpur in 1949 and Indian Institute of Social Welfare & Business Management (IISWBM) was set up in 1953 at Calcutta. That was considered as India's first official Management Institute.

In 1961, Encouraged by these results; Regime of India get the grant and support from the Ford foundation launched two IIM in Calcutta and Ahmadabad. IIM Calcutta established with an intention to fixate on Quantitative & Operational aspects of management and IIM Ahmadabad was founded in 1962. The vision of IIMs was to professionalize management education through teaching, research, training, institution-building & consulting. After that IIM-Bangalore and IIM-Lucknow was founded 1973 and Indian Institute of Forest Management, Bhopal was founded in 1982.

1990 - Present

With economic reforms post 1990; profound changes demonstrated in the Indian economy and structure of industries. The main changes influenced the role of managers, either directly or indirectly, are following:

Growth in enterprise autonomy

Growth of PPP (Public Private Partnership) enterprises

Significant increase in Foreign Direct Investment (From US$1B in 1991 to US$75B in 2007)

Significant increase in exports to the developed world (From US$39B in 1996 to US$46B in 2002)

Increased participation in the international 2economy and market

These developments incited dramatic changes in the working environment for Indian managers to enhance their skills to possess to be successful. During this era of competition, uncertainty and incremented autonomy; Indian managers no longer have to be just a proficient operators and resource-handlers only but must have visual observer for growth opportunities, and think strategically about the challenge from foreign companies, joint ventures & market economy.

During this phase of economic reforms; the Orchestrating Commission started facing difficulties in finding suitable managers for demands of public sector enterprises that were being established in India as a component of its industrial policy. To find the solution for this issue in 1981 they urged to expand the research programs to fulfill the growing demand of teachers in management schools in India. As a result, from 2007 new IIMs have been set up.

Furthermore, business management education proliferated during the same period in universities, and collaboration with foreign countries in management education and training boomed. Due to this Business School has grown rapidly in India. With the establishment of several MNCs business and management education accomplished its glorious phase. There are around 3000 business schools in India by now and many more new colleges and courses are getting introduced. It commenced providing state of art infrastructure and more opportunities for placement.

For the inspection of management studies in India; a commission headed by Prof. S.L.Rao submitted 2 different reports (Kurian Report 1991, Ishwar Dayal Report 2001) advised to focus to promote research development of faculties.

There are almost 60% CEOs in India Incorporation does not have any management degree and compared with the low starting level in 1950, the Indian government has been relatively successful in its efforts to enhance the managerial capabilities in state-owned enterprises. However, with regard to international standards, India has a long way to go. Apart from structural deficiencies, management problems are cited as the main causes of the current disarray of India's state-owned sector: at least 40% of the state-owned enterprises are incurring losses.

After economic reforms; private sector and MNC focused deeply on management and business education and this was a reason of their strategically thought and growth.

Table 1

List of Fortune 500 companies' CEO Education Status

Type of Degree

Number of CEO's*

Percentage

No Advanced Degree

163

33%

Doctorate

24

5%

Master's Degree

37

7%

M.B.A.

165

33%

Law Degree

51

10%

Others

60

12%

**** Sources: US News website, University Sites and Forbs 2011 report

Table 1.1

World famous 13 business schools that awarded at least 10 degrees to Fortune 500 CEOs

Institution

Totals

Undergraduate degrees

M.B.A.'s

Other graduate degrees

Harvard University

65

11

40

14

Stanford University

27

11

10

6

University of Pennsylvania

24

7

13

4

Columbia University

18

3

4

11

University of Michigan-Ann Arbor

14

6

5

3

University of Notre Dame

14

10

1

3

University of Virginia

14

4

4

6

Cornell University

13

8

3

2

Dartmouth College

12

9

3

0

Indiana University-Bloomington

11

5

6

0

Northwestern University

11

2

6

3

Rutgers, the State University of New Jersey-New Brunswick

11

5

3

3

Massachusetts Institute of Technology

10

3

0

7

 

244

 

98

 

**** Sources: US News website, University Sites and Forbs 2011 report

Table 1.2

Education Level of CEOs from India Inc, There are almost 60% CEO are having MBA as education

CEO / MD

Group

Degree1

Degree2

Ratan Tata

Tata Sons

B.S

MBA

Mukesh Ambani

Reliance

B.Tech

 

Deepak Parikh

HDFC

C.A

 

K.M Birla

Birla

C.A

MBA

Anand Mahindra

M&M

 

MBA

Sunil Mittal

Bharti

B.Tech

MBA

Anil Ambani

ADAG

 

MBA

K.R. Narayanmurthy

Infosys

M.Tech

 

Ajim Premji

Wipro

B.Tech

 

Venu Srinivasan

TVS

 

MBA

Shiv Nadar

HCL

B.Tech

 

Rajib Bajaj

Bajaj

M.Tech

 

Sameer Gaur

JP Associate

 

MBA

Kalanidhi Maran

Spicejet

 

MBA

Sajjan Jindal

JSW Steel

B.Tech

 

Raghav Bahl

TV18

 

MBA

Vijay Mallaya

UB Group

B.Com

 

KPSingh

DLF

B.Tech

 

Srinivasan

India Cement

B.Tech

 

Malvinder Singh

Ranbaxy

 

MBA

Pawan Munjal

Honda

B.Tech

 

Rahul Bhatia

Indigo

B.Tech

 

G.M.Rao

GMR

B.Tech

 

Uday Kotak

Kotak

 

MBA

Chanda Kochhar

ICICI

 

MBA

Vinita Bali

Britania

 

MBA

Kalpana Morparia

JP Morgan

B.Tech

 

Kiran Shaw

Biocon

M.Sc

 

Malika S

TAFE

 

MBA

Naina Lal

HSBC

C.A

MBA

Neelam Dhawan

HP

 

MBA

Preetha Reddy

Apollo

 

MBA

Roopa Kudwa

CRISIL

 

MBA

Sulajja Motwani

Kinetic

 

MBA

Swati Piramal

Abott

MBBS

 

***** Sources: Forbs Report 2011

Table 2

There are over 3,000 business schools in India today distributed over different states as follows:

State

Numbers

Percentage

Andhra Pradesh

943

26.48

Uttar Pradesh

460

12.92

Maharashtra

417

11.71

Tamil Nadu

391

10.98

Madhya Pradesh

214

6.01

Karnataka

210

5.90

Haryana

157

4.41

Punjab

138

3.88

Rajasthan

137

3.85

Gujarat

131

3.68

Orissa

79

2.22

Kerala

68

1.91

West Bengal

56

1.57

Uttarakhand

50

1.40

Chhattisgarh

27

0.76

Delhi

21

0.59

Bihar

16

0.45

Himachal Pradesh

13

0.37

Jammu and Kashmir

11

0.31

Jharkhand

8

0.22

Assam

6

0.17

Puducherry

6

0.17

Sikkim

1

0.03

Dadra and Nagar Haveli

1

0.03

Grand 3561

3561

100.00

**** Sources: AICTE Hand Book 2012

Table 3

State-wise Population and Management PG Seats Per Lakh Population

State/UT Projected

Population 2006 (In Lakh)

MBA/PGDM

Seats per Lakh Population

Mizoram

9.46

0

0

Meghalaya

24.7

0

0

Arunachal Pradesh

11.69

0

0

Sikkim

5.76

0

0

Bihar

907.52

1050

1.16

Assam

286.65

337

1.18

Manipur

23.08

30

1.3

Chattisgarh

225.94

360

1.59

Tripura

34.07

60

1.76

Himachal Pradesh

64.55

180

2.79

Nagaland

21.19

60

2.83

West Bengal

852.16

2445

2.87

Jharkhand

292.99

975

3.33

Others UTs

31.76

120

3.78

Jammu & Kashmir

109.41

440

4.02

Gujarat

549.79

3075

5.59

Madya Pradesh

663.9

3840

5.78

Kerala

332.65

2155

6.48

Rajasthan

622.76

4230

6.79

Uttar Pradesh

1832.82

14175

7.73

Orissa

388.87

3178

8.17

Uttranchal

92.19

945

10.25

Haryana

233.14

2615

11.22

Punjab

260.59

3070

11.78

Karnataka

562.58

6952

12.36

Goa

14.92

210

14.08

Tamil Nadu

651.35

9785

15.02

Maharashtra

1048.04

15912

15.18

Andhra Pradesh

807.12

14945

18.52

Delhi

160.21

3560

22.22

INDIA

11121.86

94704

8.52

***** Sources: AICTE Hand Book 2012, UGC Report 2008

A large number of seats are filled through one country level examination organized at different number of locations in India. Therefore, higher per capita seat number for any specific state does not inevitably intend to bigger number of opportunity for students/candidates from that state. This may be partly an expression of the state's capacity to engage a bigger % of management candidates.

3. THE CURRENT SITUATION: "MODERN" MANAGEMENT

4. GOVERNMENT POLICY

5. INFRASTRUCTURE AND CONTROL

6. CURRENT DEMAND AND NEEDS

7. CONCLUSIONS

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