In this paper, we have made our efforts to highlight on the issues that really tend to make management education a success in the future.
We have talked about the management education prevalent in India; the various growth drivers like Integration of Economies, the changing demographics, and development in technology; the major issues and challenges being faced, including the formation of committees for improving management education and their recommendations, AICTE role. Other challenges mentioned include: growth, specialization, quality assurance, pedagogy, inculcating values, etc. (details discussed). Further reforms needs to take place in areas like rural management, e-learning, foreign university collaborations, teaching methodology, development of an accreditation system, etc.
The paper draws on data and perspectives from a wide range of sources to describe trends and to show how they will converge to create the challenges of the future. Our most modest objective was to bring some clarity to the emerging global landscape of management education, but we go further. Because management education has become increasingly critical to the future of organizations and society, we offer a series of recommendations that can assist leaders from management education, business, and government to shape the future.
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With the growth of liberalization and globalization, increasing professionalism, dynamism and complexity in the environment, the management education sector needs to be reformed in order to be in pace with advancement and progress in other countries. This will also help in ultimately contributing to the overall economic growth and development in India. With augmentation in management education, it will also attract foreign investment in the sector, further creating employment opportunities and thus contributing to all-round development of the Indian economy.
Management education in India: An agenda for reform
Swami Vivekananda had envisioned a vision on education and had categorically pointed out that true education is not the amount of information that is put into one's brain. The human mind is not a bottomless dry well, which has to be filled in with buckets of information by the teacher (as also rightly said by "Amir Khan" in the movie "Three Idiots"). He had said that education has more to do with assimilation of ideas and developing 'a mind of the same material as that of which the thunderbolt is made'.
What type of management education will provide this enlightenment?
According to Swamiji, 'The training by which the current and expression of will are brought under control and become fruitful is called education'. He wanted a man-making education 'by which character is formed, strength of mind is increased, the intellect is expanded, and by which one can stand on one's own feet'.
Thus as per the definition:
"Management" all business and human organization activity is the act of getting people together to accomplish desired goals and objectives
"Education" is knowledge acquired by learning and instruction
Thus students of management education acquire the knowledge and skills that enhance and enrich their lives and enable them to make meaningful contributions to their organizations. In turn, organizations those are successful in meeting their goals and fulfilling their purposes become enormous assets to societies, fostering greater productivity and a more desirable quality of life .The value of management education to individuals, organizations, and society is almost incalculable.
Role of Management Education:-Â
In the developing of any nation, the role of youth in constructing the nation need not be overemphasized.Â The youth of our country have to absorb the knowledge and skill so as to enable them become perfect fits in the Global and Indian atmosphere.Â In this situation, the role of higher education is significant and dominative .In current knowledge society, fast changes are arising in all aspects of life.Â Management education has become dominant and crucial element in education.Â Â Professionalization of management education is going to be an important instrument for accepting the current challenges.
Overview of Management Education in India:
The IIMs were not the pioneers of management education in India; they were preceded by departments of business administration (management education) in the 1950s in the four metropolitan universities of Bombay, Delhi, Calcutta and Madras. The best known of these are the Faculty of Management Studies in Delhi University and the Bajaj Institute in Bombay. IIMC and IIMA came up in 1964-65, while IIMB and others at Lucknow, Indore and Kozikode arrived in the 1970s, 1980s and early 1990s
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Post liberalization period witnessed a greater need of professional education. The 21st century promises to herald a different environment for human development in all walks of life, including education. It is going to be knowledge -driven century resulting a need of greater reform in all education related activities like teaching, learning, evaluating, natural production, curriculum revision, administration production etc.
Concept of global village and revolution in the area of information technology is increasing integration of economies around the globe & attainment of global competitiveness has become a necessity for the survival & growth. Liberalization of Indian economy has resulted in a highly competitive environment, great all round emphasis on technology, quality, and greater concern in society for the environmental issue & unprecedented development and use of information technology.
As business leaders try to navigate and rebuild economies savaged by the global meltdown, business schools around the world are rethinking leadership and how to train the next generation of managers in the midst of unprecedented challenges. The reinvention may well be led by India, where explosive growth in demand for management training has opened the door to massive growth and innovation in the business school sector. The newest ideas and opportunities being discussed by the elite of Indian business schools, government officials, and corporate leaders in August in Delhi at a global conference called Rethinking & Rebooting Indian Management Education gave way to a lot of opportunities and action points.
India has a one-of-a-kind combination of location, culture, and demographics. Like a developing nation that skips the messy stage of telephone poles and patchworks of wires and goes straight to high-speed wireless, India has the opportunity and motivation to leverage the lessons learned by the Western world's business schools, and create a management education system that will spur economic growth-and become the ultimate state-of-the-art laboratory for global business education innovation.
It is also felt in this era of globalization, that to meet out the challenges of change, a private precondition for enhancing global competitiveness of Indian Industry is the creation of close, multilateral cooperative linkages among the government, industry, labor & academic. For this requirement includes institutions of higher education & research in management. Liberalization & globalization gave way to tens & hundreds of private commercial management courses & institutes but the very attitude, quality, ethics, standards, openness creativity, logistics etc. essential for professional are missing in most of the institutions of management education. The result is that management education in India today is in a sorry state of disrepair, it does not mean that demand is going down but it is the result of bad quality production. If this will continue then Indian MBAs will hardly be in demand as global managers.
In this era of global competitiveness, we have to exercise utmost care to safeguard India's interest to see that India does not loose in international arena. In the era of these fast emerging changes, there is a need for future global managers with qualities and competencies in global perspective. Quality is the only currency, which is accepted universally & it is also true in the case when product is education. To make India an intellectual capital of the world we have to rethink about the management education & effort should be made to create a dynamic environment, which can produce quality management education colleges.
Growth drivers :
Management Education market in India is about Rs.30 billion in 2008 (campus and distance education together) and growing at a rate of 12% CAGR in last 3 years. Currently 1,550 business schools producing over 100,000 management graduates every year is not enough to meet the growing demand for management education in India. Against 290,000students applied for CAT in 2008 number of seats offered by IIMs are 1,700 only showing the huge demand - supply mismatch for quality management education in the country. As a result, opportunities in management education in India are immense.
Growth of Business Schools in India during 1950-2006
No. of B-Schools added
Average annual addition
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Source: Adapted from Dayal, I., "Developing Management Education in India", Journal of Management Research, 2(2), August 2002, page: 101.
NB: The figures attributed for 2000-2006 is estimation from current data and therefore shown with an asterisk (*)
Growth in the number of business schools has accelerated over the last two decades.
This acceleration, propelled by the increase in the rate of growth of the Indian economy, speaks also for the entrepreneurial initiative of promoters to seize commercial opportunities in education. The imbalance between demand and supply for management graduates has led to an overly commercial and exploitative environment in management education.
Integration of Economies: Integration and job growth in market economies will increase the demand for management education, as previous experience has shown that skilled, better educated workers have the most to gain from globalization.
Demographics: Youth population is increasing in India "62 percent youth in the country". Thus future managers and drivers of business organizations are in abundance and they would be guided through management education.
Technology development: Technological changes have shifted the emphasis in executive requirement, from sheer experience to qualification and training.
Hence, during last four decades the cost - benefit analysis of management education programmes gave impetus to the demand for this education and today there are as many as 50 aspirants per seat for most of the prestigious management programmes.
Issues and Challenges:
There are major issues facing management education in India in the light of changes in global management education.
An analysis of the recommendations of various review committees on management education shows that quality of faculty, research industry interactions as well as corporate governance needs considerable attention. These will require setting up of an institution, namely All India Council for Management Education as management education needs focused attention if the 1000 odd institutions need to be monitored and nurtured. About 70 percent of the management schools in India need to be improved substantially if they have to produce managers who can make a difference.
Management education will need greater attention so that we could respond to increasing levels of competition, as management education is the major intervention that could drive organizational and individual development. The concept of continuously developing human capability and learning, weaving it into classroom experience (new knowledge and skill), and practicing it at work. This part is an attempt to bring together the major issues facing management education in India in the light of changes in global management education.
If India has to become a global economic power, it has to give attention to management education as coordination of assets, supply chain and knowledge flows will become critical for maintaining the competitive edge.
Before examining the issues, a review of steps proposed by various committees for improving management education are examined:
Nanda Committee was the first committee that reviewed the working of the three Management Institutes of Management at Ahmedabad, Kolkata and Bangalore, to make recommendations for the promotion and development of management education in India. The committee suggested that Management education has to be research based, and utility based, institutes should become self reliant and the government must relinquish control over the years.
Kurien Committee: Appointed by Government of India for second review under the Chairmanship of Mr V Kurien in 1991, to look into the direction and functioning of the four institutes of management. This committee also emphasized on research and development of teaching aids and industry consultancy and that institutes should become self reliant.
Ishwar Dayal Committee: This committee was appointed to develop future perspectives of management education in the light of the fast changing economic, social and business environment. Main challenge in management education has been triggered by globalization of economies, rise of market economy, rapidly changing technology and developments in communication. This committee focused mainly on faculty development and teaching methodology and pointed out the main issue that many institutes were not following the AICTE regulations.
AICTE appointed a committee in 2003 to come up with a policy and action plan for the development of management education in India, in the context of our current national requirements and national trends. Main points being focused by this committee were of accreditation on institutes for quality assurance and how to face globalization through management education.
All four committees have unequivocally indicated that management education in India faces the following systemic problems:
Shortage of quality faculty
Research being neglected by most of the management institutions.
Little attention being given for preparing course materials specific to the Indian context.
Poor library and computer infrastructure, except in the top management institutes.
Lack of interactions with industry by management institutions, which acted as a vicious circle giving merely non- practical education.
Little investment in faculty development, even though most of the committees earlier had identified this as a major lacuna.
Even after these issues being recognized by various committees there has been little or no action which has been taken place.
Hence the present scenario also faces the following issues and challenges:
Despite growth taking place, still various factors like quality assurance, faculty development, research base and infrastructural and financial resources are acting as constraints for many of the growing institutes. For all of these reasons, business schools across the globe are having difficulties in supporting the continuous growth in the demand, without implementing any significant changes in the way they assure quality, organize faculties, and finance and govern their programs.
Balancing Global Aspirations and Local Needs:
Management education can enable both global and local success. Powerful forces of globalization, advances in information and communication technology, and further liberalization of services trade will not only demand more from management education, but also enable us to achieve local and regional goals and objectives. For example, international alliances and exchanges of faculties and students create opportunities to build banks of localized case studies, which can be shared worldwide through electronic channels. Expanding global footprints of individual schools give rise not only to globally savvy graduates, but also represent an investment in local economies.
The real and more important question is, "How will we capitalize on these opportunities to balance our global aspirations against the needs of our regions, nations, and local communities?"
Bringing in specialization:
Rapidly growing areas in business are - agricultural services, infrastructure management, contract research, high tech entrepreneurship, hospital management, NGO and ITES. These businesses need customized management education. Curricula customization, specific material development and faculty specialization are some of the neglected factors that led to poor quality management education in India. In spite of some B-Schools introducing MBA courses on telecom, financial services and infrastructure management, there have been very little efforts on customization. On the other hand, materials prepared for other contexts are being directly used without examining the contextual validity.
As management education grows and students, graduates, and faculties become more mobile, we must be increasingly concerned about the maintenance and assurance of quality. These standards cover the full breadth of quality dimensions: mission, strategy, faculty, students, staff, curricula, educational outcomes, and research. The standards define quality. One of the emerging issues is to identify the process to be adopted for implementation of an accreditation system.
Accreditation needs to be separated from recognition. The accreditation has to be fair, transparent, independent as well as ruthless. Rapid growth in the number of management institutes requires a specialized body rather than the all - encompassing AICTE to carry out accreditation. A council exclusively for management education is needed, and the process of accreditation and recognition needs to be made separate. Corporate governance has to be made an element of accreditation. Transparency has to be the root of corporate governance. Information on faculty qualifications, the size and contents of the libraries, availability of computer facilities, adequate provisions for scholarships, reach out programs to take management education to deprived sections of the population, a rating for all institutions that guides students and recruiters in making sensible choices, have to become a part of the corporate governance agenda in B-Schools. The issue is how to make B-Schools implement such an agenda. This may require a strong monitoring system and statutory reporting on the lines of SEBI, for corporate governance in listed companies.
Pedagogy and Ensuring Quality Faculty:
A large number of sanctions were given to a number of B-Schools with the establishment of AICTE. While giving these sanctions to a large number of institutions, AICTE was unable to create adequate mechanism for the development and training of faculty to teach in management courses with an applied bias. Two critical issues to be addressed are mechanisms for ensuring quality of faculty and making the learning student-centered. This requires faculty experienced in student centered learning and adequate library and computer support. The issue is to change the bottom rung of 70 % of the institutions that are located away from metros/cities.
While many industrialized countries have tested and adopted management practices that are in perfect harmony with their culture and tradition, India is yet to do this exercise through systematic research and study. For example, we do not have good cases or teaching material on managing ITES. Materials available are not specific or relevant to our context. There are no easy approaches for solving the issue of inadequacy of context specific material, but to develop an agenda for that, as developing material is a specialized and time consuming task. Management institutions do not have a culture that is supportive of research. A research culture needs a research community and a research agenda. Such a culture will be created only when it becomes an organizational priority and there is top commitment for building that. If the targets of B-Schools are predominantly monetary, a research culture will not emerge.
A national testing service and a comprehensive testing system need to be evolved. There seems to be no need to have so many tests and the proposed All India Council of Management Education would need to examine the possibility of reduction in the number of tests while at the same time ensuring that the quality of testing is not sacrificed for the sake of uniformity.
Aligning with the Future Needs of Organizations:
Needs of the organization have changed over time and will continue to change in the future as well. In fact the pace of change has been accelerating. Thus, business schools need to structure themselves and build systems to learn about, predict, and react quickly enough to the rapidly growing and emerging needs.
The main strength of top class B-Schools like Kellogg, Wharton, Sloan and Harvard is their strong relationship with industry through teaching, research, student placements, problem solving and case study preparation. The issue in India is to make this happen in the case of the low ranked B-Schools in India. There has to be an institutional mechanism for developing liaison with industry in each B-School.
One of the issues that management education has to consider is the manner in which experiential learning elements could be enhanced. This could also enhance the context specificity while learning. Given the considerable contextual and institutional varieties of management education not just between different countries but within them, learning has to be experiential.
Real life situations are complex. Bringing in a living experience is a more promising vehicle for the introduction of such messy, irrational complexity which is closer to the management realities. The challenge of management education is to bring students close to real situations.
Inculcation of values at the grass roots level. Focus is still to get the highest salary package. The issue in India is to make B-Schools create greater impact by focusing on values and ethics as the guiding principles.
The committee recommendations are still in place in the current scenarios as not much progress has taken place. These recommendations are very valid and form the core of management education reforms in India. In addition to the above, the following reforms need to take place:
Ensuring Quality Faculty: Faculty development should be the main focus and a body for the quality standard or performance benchmarking should be set to test the faculty and maintain an intellect pool. Teacher training curriculum needs to be revamped.
Developing Material Relevant to the Indian Context: Indian authors should be encouraged to write books with Indian cases and examples and application of the theory in Indian context.
Promoting a Research Culture: Research should be the main focus which will be instrumental in all other things like faculty and pedagogy. Academics' role is to ensure that organizational change and transformation is at the core of the program's curriculum. And curriculum goals are to include functional knowledge, global perspective, leadership, ethical judgment, decision making, adaptability, communication, managing IT and finally management competency, which could be achieved through continuous research.
Evolving an Accreditation System: Rising challenge of quality assurance can be met only by promoting greater transparency and credibility in the information available about business schools and their promises. Accreditation should be done by an independent bodies or peer review. Alternatively Quality Circles will also ensure quality in management education.
Developing Interaction with the Industry and Learning Real Business Issues: Management education should be made relevant to meet industry requirements, so that students make a smooth transition from academics to industry. Industry needs Employable management graduates.
Teaching methodology: There is a need for adoption of complicated approaches by management educators. The argument rests on the position that if uncertainty and ambiguity are inherent to management, particularly in view of the profound changes that have occurred during recent years in the competitive environments of organizations, there is the need to develop complex managers, that is, managers more skilled in dealing with uncertainty and ambiguity. Four parameters are used to describe the possible ways of developing complicated understandings. The parameters are interdependence, independence, integration and differentiation. All the four parameters are combined to form four combinations (integration-interdependence, integration-independence, differentiation-interdependence, and differentiation-independence) to understand the complications of business world. For example, we combine integration and interdependence which means that organizational phenomena should be studied according to the rational perspective without excluding other perspectives from the analysis (e.g., the emotional perspective). The different perspectives are approached as interdependent processes in the sense that what matters is to approach phenomena from one perspective while keeping another active (and integrating both of them to analyze a situation).
Rural Management Education: An untapped area, the future lies there. We do need to consider the potential talent pool in the rural areas, which can contribute to the overall goal of advancement of education and in turn, the economic growth of the country. Education opportunities need to be spread out rather than concentrated in isolated geographic locations.
Integration of different aspects of management: Various segment of management like marketing, finance, production, etc. needs to be amalgamated instead of being taught in isolation. They are taught separately, not in an integrated way except briefly at the end.
E-learning: The Road Ahead, Need to take up. Restructuring of the MBA programs considering the growth of technology in the recent years. The growth in management education is closely linked to as to how the institutes absorb the growing IT systems into its operations. Especially, online learning and industry acceptability of the course to enable working managers to upgrade their skills and fight the global pressures.
Foreign Universities coming to India- the need of global collaboration & program innovation. We need to create a global mindset and inculcate Indian values to work in cooperation with the foreign counterparts i.e. to think globally and act locally.
As a part of this recommendation, we suggest concentrated efforts to help management schools to become more involved with the global management education community. Dramatic growth in college-age populations, widespread resource limitations, rising demands for skilled workforces, and daunting economic and social development will converge to make management education all the more important.
As the Indian economy gets integrated with the global economy, our managers need to possess skills that are equivalent to that available in the global firms. International companies are investing in India and Indian Companies are going global. Internationalization of business makes it necessary to have different knowledge and skill sets. The notion that business school graduates must have cross cultural knowledge and expertise has steadily gained support and become an important goal and marker of achievement of many professional schools. Similarly, ethics and corporate governance will also become crucial issues in management. The management schools in India should strive for some specialization and distinctiveness if they have to make a strong contribution to the growth of the economy. The work organization is the "lab" of emergent theory and knowledge. This requires a set of structural devices, accreditation processes, accountability structures, institutional routines, funding arrangements, and stakeholder involvement which enable and allow such social institutions to thrive and create tomorrow's society. This is the critical challenge in front of management thinkers and educators.
Management education provides the leadership and vision that continue to elevate individuals, organizations, and societies. Learning "the business of business" is clearly regarded around the world as a worthy and constructive endeavor, and this value continues to escalate.