Chapter

1
Introduction

 CHAPTER 1

INTRODUCTION

Management is a

any country, organization and entrepreneurial venture can be run successfully. Management

education has drawn the attention of the industry as well the entrepreneurs equally well. This has

provided a platform on higher education for the students as well the faculty members. The

Management Education is the most sought after prestigious post graduate course with more

career opportunities. The number of B-Schools in India has increased since its formal

establishment; the quality of education has not improved concurrently, Datar et al., (2010).

MBA students are a mix of fresh graduates without any work experience and people

with significant work experience. The students learn the fundamentals of business and its

environment through their MBA course. The learning and talent development process that the

MBA students undergo facilitate them towards developing competencies in line with the

industry expectations. The B-Schools do various activities to make sure that the MBA

students acquire competencies which will usher them got employment opportunities.

The B-Schools placement performance in the recent past is not that much

encouraging. The real reason for the dismal placements at B-Schools is because of the

mismatch between the skill sets required at the work place and the skills taught at the B

Schools, Srinivas ARKS (Economic Times, June 3rd 2013). The craze among the students to

get into B-Schools other than the top tier is fading due to the factors such as uncertain

economy, sluggish financial sector, lack of quality placements and degradation of quality of

MBA education.

A good percentage of management graduates are either not employed i.e. do not get a

job or underemployed i.e. take up a job that is not relevant to them. The graduating students,

i.e. the potentially employable workforce, fall under three categories viz. Employable, Not so

1
employable and Not Employable. The first category represents a very small percentage by

virtue of their competencies and qualifications. The second category requires maximum

attention. They are the ones who are not directly employable for several reasons such as poor

academics, lack of practical knowledge and poor access to the job market. They lack basic

understanding of competencies expected out of them. The last category represents those who

are not employable due to several reasons like illiteracy, poor or incomplete education, total

lack of skills & attitude, background deficiencies, poverty, etc. The challenge ahead of B-

Schools is in transforming the second category i.e. not so employable to Employable.

Upgrading Category 2 (Not so employable) to Category 1 (Employable) is possible through

effective learning and talent development practices.

The main aim of the study is to address the concern about the quality of MBA

education in B-

competency has to be taken care such that the knowledge transfer happens. The student

community must develop versatile skills and ready to adapt to changing industry

requirements. This chapter gives an idea about the present scenario of Higher Education

especially Management Education in India.

1.1 India - Demographic Advantage

India is expected to become one of the most populous nations by 2025, with a

headcount of around 1.4 billion (The Hindu, June 15th

64 age bracket over the next decade, increasing

the working age population from approximately 761 million (CRISIL 2010) to 869 million

during 2011 2020 (IBN Live, 2010). Consequently, until 2020, India will be experiencing a

exceed that o

2020, with an average age of 29 years, and account for arou

2
(UN Habitat 2013). In comparison, during the same period, the average age is expected to be

37 years in China and the US and 45 years in Western Europe.

expected to enjoy the benefit until 2040 (Twelfth Five Year Plan, April 2013). An increasing

proportion of working population will provide a window of opportunity to improve labor

productivity, increase domestic production, enhance revenue from services, increase savings

and reduce the burden of old residents on the working population. Empowered with unique

demographic advantages and guided efforts, India is poised to position itself among

developed economies within the next 10 15 years. Hence the role of Higher Education is

crucial to fully capitalize on the demographic advantage that India has.

1.2 Higher Education Scenario in India

Indian education system, considered as one of the largest of its kind in the world,

faces/encounters enormous challenges in the new millennium. These challenges are

diversified and manifold stretching from contemporary curriculum development, quality

assurance, accreditation, ethical value propositions to policy planning and governance. In a

technology driven society knowledge rewrites the fate of a nation and so does higher

education. An academic revolution has taken place in higher education particularly in the past

half century marked by a paradigm shift in scope and opportunity. Over the years higher

education system has become an enterprise having much of business orientation with all its

exposure to fierce competition at different levels of stakeholders.

Over the last decade, the Education sector in India has grown by leaps and bounds.

The Indian Education space is by far the largest capitalized space in India with Government

spending of USD 30 billion and private spending of USD 50 billion, (IDFC, SSKI India

Report, January 2009). In terms of number of collaborations forged by Foreign Universities

with Indian Educational Institutions, in 2011 alone, a total of 161 collaborations were

3
reported in the UK India Education and Research Initiative and the programme has been

extended for 5 years from 2011 to 2016.

As per the UGC Report on Higher Education at a glance

next

only to China and the USA. The growth in the number of universities and university level

institution and colleges in India is astonishing and are shown in the figures 1.1 & 1.2. The

Compounded Annual Growth Rate (CAGR) in the number of universities, university level

institution and colleges in India from 2004-05 to 2011-12 is 10.3% and 11.8% respectively,

as per the UGC reports on Higher Education in India Strategies during 11th plan (2007-2012)

for Universities and Colleges and Higher Education at a Glance - February 2012.

Figure 1.1: Growth in Number of Universities and University Level Institutions

Figure 1.2: Growth in number of colleges

Source: *UGC report on HE in India Strategies during 11th plan (2007-2012) for Universities
and Colleges, ** UGC Report on Higher Education at a Glance - February 2012.

The factors such as huge demand/ supply gap, more private players venturing into the

Education sector, Growth of services sector particularly the IT sector, demand for skilled
4
workers, Increasing FDI into the sector, Increase in Internet based education methods,

Increased ability to capitalize on brand and reputation and Opportunity to enhance scale and

diversify risk by tapping new markets for entrepreneurs have contributed to the exponential

growth of the education sector in India. (Price Waterhouse Coopers Report on Higher

Education, 2012)

in Higher Education not being that

much encouraging was due to suboptimal investment on higher education in the recent past.

Due to the unprecedented growth of knowledge typically in the area of ICT, globalization and

competitiveness the investment in Higher education sector has become a decisive force of

growth. This necessitates massive investment on higher education so that availability of

internationally acceptable highly skilled manpower can be ensured.

The impact of potential entrants on Indian higher education system can be felt through

the parameters like access, equity and quality. Moreover, in view of the inherent lapses in the

regulatory structure of the system, unregulated foreign participation may lead to unfair and

exploitative practices; to mention a few are high capitation fees, misrepresentation of courses

and corruption in admission. All these may further accentuate the functional and ideological

differences. Thus, in order to ensure excellence and reasonable match between demand and

supply of globally acceptable labour, striking balance has to be restored between accessibility

to world-class educational system and model exemplifying national values, ethics and

standards.

1.2.1 Access and Equity: Education is one of the most potential weapons to fight against

socio-economic maladies like poverty and inequality. Education is equally a key to enhance

integration of Indian economy with world economy posing many challenges like maintaining

international quality in higher education, acceptability and sustainability of skilled

5
manpower. This seems to be more important for a country like India which is the third largest

system of higher education, next only to USA and China, Therefore, ensuring access to

quality education for all, in particular for the poor and rural population, is vital for the

economic and social development of India.

Looking at the ground reality, it gives a dismal picture of the state of higher education

in India. One of the reasons of such a poor state of affairs may be attributed to concentration

of educational institutes in the urban areas while majority of population live in rural areas.

This is evident from the fact that in India only as negligible as 20 percent of Higher

Education Institutes are located in the rural areas with more than 65 percent of its population

while the remaining 80 percent of Institutions are located in urban or Semi-urban areas which

constitute only 30 to 35 percent of population. This invariably reflects gross disparities in

access to higher education in India, Ballal (2009).

Moreover, over the years Information and Communication Technology (ICT) has

been emerging as a potential alternative to ensure greater accessibility to higher education

beyond geographical and political boundaries with all its advanced tools like

teleconferencing, email, audio conferencing, television lessons, radio broadcasts, interactive

radio counseling, interactive voice response system, and CD ROMs. It can also facilitate

many such academic and administrative activities with e-orientation (Sharma, 2003; Sanyal,

2001; Bhattacharya and Sharma, 2007).

In order that the trickle down effects of higher education benefit the economy at large

it is essential that inequalities of access to higher education are reduced substantially,

Chauhan (2008). The inequalities are diverse and multidimensional. It may vary from quality

to gender, from technology to region. Despite its large size, the higher education system in

India is far away from the reach of the bulk of the socially economically and culturally

underprivileged section of the population and cannot meet the growing demand for higher

6
education, especially from weaker sections of the society including culturally, economically,

and educationally backward people. Further, the absence of equity and inclusiveness in the

system is clearly discernible from the fact that the intensity of enrolment in rural areas is low

compared to that of urban, Chauhan (2008).

On gender front, the access to higher education is also low for female as compared

with male, the GER being 15.25% for male and 11% for female, Thorat (2006). Gross

Enrolment Ratio (GER) in Higher education in India as per the All India Survey on Higher

Education (AISHE) 2011-12 is 20.4, which is calculated for 18 23 years of age group. GER

for male population is 21.6% and for females it is 18.9%. Gender Parity Index (GPI) of GER

for the country has come out to be 0.88. Many factors can be attributed towards such

disparity like financial constraints and lower status of women, lack of proper implementation

of ongoing programmes and absence of political will most importantly contribute to inequity

and non-inclusiveness in the system.

The Total enrolment in higher education has been estimated to be 28.56 million with

15.87 million boys and 12.69 million girls, AISHE 2011-12. Girls constitute 44.4% of the

total enrolment. Total Student enrolment has been classified in eight levels across all the

States of India viz Ph.D., M.Phil., Post Graduate, Under Graduate, PG Diploma, Diploma,

Certificate and Integrated. The highest numbers of students are seen enrolled at Under

Graduate level (79%) across India. On the other hand, second to Under Graduate, 11.8%

students are enrolled in Post Graduation. At PG level maximum students are enrolled in

Management stream and Social Science comes at number two, AISHE 2011-12.

1.2.2 Quality and Accreditation: The world economy is changing and so is the higher

education. The availability of knowledge, ensuring quality, contribution to the economy at

large happens to be a strong determinant of national competitiveness and quality of human

resources in a country. The economic progress cannot be sustainable in absence of a higher

7
education system equipped with stringent quality assurance processes. Quality is a critical

factor in influencing the educational outcome of the educational institute on one hand and

employability of the graduates on the other.

stakeholders like students,

parents, future employers, the State and funding bodies need to be taken care of while

developing a strategy leading to quality in higher education, (Barnett 1992, Staropoli, 1991).

This necessitates developing a stringent monitoring mechanism to maintain and improve the

standards of education. In this regard, India has established National Assessment and

Accreditation Council (NAAC) and National Board of Accreditation (NBA), similar policies

adopted by many developed nations like UK, Canada to promote quality in education.

The overall quality assurance framework followed by NAAC has all the basic

elements of quality assurance like accreditation, assessment and academic audit. Further, the

methods adopted by NAAC like institutional self-study report, on-site visits, face-to-face

interaction with faculty and students leave a fair degree of consequential impacts on the

educational institutions to adhere to quality norms and standards. However, ensuring quality

in a complex, diverse and one of the largest educational systems of the world requires a high

degree of accountability both from the institutions and National agencies. Since the

participatory role played by students in academic discourse gets seriously affected by not

granting due freedom to them and the teachers on the other hand fail to bring the fruits of

hard core applied research and consulting to the class room for effecting better and

meaningful learning for want of right kind of academic environment coupled with assistance

and incentives.

Keeping in view of such complexities NAAC has taken initiatives to strengthen

Thus sustainability in upgrading quality depends much on the sta

8
continuous self appraisal supplemented by the unbiased qualitative review and in time

dissemination of requisite information to the receiving end. Moreover, there is no denying the

fact that there is also a need to review the ongoing policies and the lapses and shortcomings

in meeting the objectives so that recommendations on the basis of national consensus can be

worked out for implementation. This can invariably trigger a healthy and constructive

competition in the higher education field to march towards excellence.

The National Board of Accreditation (NBA), India was initially established by AICTE

(All India Council of Technical Education) for periodic evaluations of technical institutions

& programmes basis according to specified norms and standards as recommended by AICTE

council. NBA in its present form came into existence as an autonomous body with the

objective of Assurance of Quality and Relevance of Education, especially of the programmes

in professional and technical disciplines, i.e., Engineering and Technology, Management,

Architecture, Pharmacy and Hospitality, through the mechanism of accreditation of programs

offered by technical institutions. NBA has introduced a new process, parameters and criteria

for accreditation. These are in line with the best international practices and oriented to assess

the outcomes of the programme.

India is also witnessing a growing interest among leading B-schools from the West.

These institutes are either setting up campuses in India or are getting into long-term strategic

partnerships. Many B-schools have also earned prestigious international accreditations in the

last few years. B-Schools in India started focusing on getting International Accreditation such

as Association to Advance Collegiate Schools of Business (AACSB), Association of MBAs

(AMBA), European Quality Improvement System (EQUIS) and Accreditation Council for

Business Schools and Programs (ACBSP).

AACSB accreditation is considered to be the best on many accounts. In India, only

two B schools Indian School of Business and TAPMI have received it. Various

9
parameters, including the quality of curriculum, faculty and global content in the program are

evaluated before granting the accreditation, (MBAUniverse.com Year-end Review 2012).

In terms of of importance and recognition, EQUIS/EFMD accreditation comes next to

AACSB. IIM Ahmedabad and IIM Bangalore are the only Indian B schools to obtain the

European Quality Improvement System (EQUIS) accreditation, run by the European

Foundation for Management Development (EFMD), (MBAUniverse.com Year-end Review

2012).

IIM Lucknow, IIM Kozhikode, SPJIMR, MDI and IMI are accredited by the

Association of MBAs (AMBA). This accreditation represents a high standard of achievement

in post graduate business education. According to its website, students, faculty and employers

recognize the accreditation is an assurance of quality, (MBAUniverse.com Year-end Review

2012).

MDI Gurgaon, XLRI, XIMB, ICFAI, Welingkar Institute of Management, IMI New

Delhi and IMT Ghaziabad have received the South Asian Quality Accreditation System

(SAQS) accreditation. To achieve the SAQS accreditation, a business school has to undertake

self-assessment based on quality criteria developed by the Association of Management

Development Institutions in South Asia (AMDISA) and vetted by a team of peer review

experts. Based on their recommendations, the AMDSIA accreditation committee takes a final

call, (MBAUniverse.com Year-end Review 2012).

ACBSP is a specialized accrediting organization that reviews the quality and integrity

of business degree programs. In India, PSG Coimbatore, Regional College of Management

Bhubaneswar, SCMS Cochin, Jansons School of Business, ICBM-SBE, Amity Business

School and Ramaiah Institute of Management have ACBSP accreditation. Accreditation by

10
by a group of professionals, which include faculty and academic administrators in the field of

business, (MBAUniverse.com Year-end Review 2012).

Given the accrediting bodies assess a B-school on various parameters, including

infrastructure, faculty, students, placements, innovation, research, teaching effectiveness and

executive education among others, the gains accreditation accrues an institution explains the

rush among B-schools to seek one.

1.2.3 Public Private Partnerships: As India has entered an era of high economic growth in

multiple sectors it faces manpower deficiencies. High level of knowledge and manpower

development can promote economic prosperity with International recognition by developing

potential skilled labour force and deriving other tangible socio-economic benefits. Therefore,

financing higher education has come to the centre stage of debate and discussions among the

policy makers across the globe. The origin of debate much relates to public and private

funding of higher education. Even in most of the developing economies the shift from public

funding to private funding is visible. Pressure of fierce inter-sectoral competition for public

funds and also the requirement of massive funds for developmental projects aggravate

financial stringencies.

It is also not practically possible for public higher education systems alone to meet

growing demand for higher education. This has opened up new possibilities like the public

private partnerships in higher education system. And the objective of enhancing the

accessibility of qualitative higher education with equity to a seemingly diversified population

can be accomplished through effective and meaningful private participation rather than

exclusive dependence on public funds. This public private partnership may take any form like

public ownership with private participation, private ownership with public subsidy, etc.

involving interplay between three stakeholders: the government, the individual learners and

the private individuals or enterprises.

11
 However, by encouraging private participation accessibility of higher education to a

diversified demography in a resource constrained economy can be expanded. The need of the

hour is to develop a strong, viable regulatory mechanism to grant permission to private or

cross-border institutions to operate for ensuring and expanding qualitative higher education.

Therefore, public private partnerships built on the expertise of each other through appropriate

allocation of resources, risks and rewards can really play crucial role in nation's strategic

development of higher education.

Higher Education is seen as an important element of a holistic system of education,

which must be flexible, inclusive and progressive for the success of the Knowledge

Economy. The main focus areas for Higher Education in India as per the 12th Five Year Plan

(2012-17) are to improve and achieve Accessibility, Equity, Affordability, Flexibility and

Quality Standard. In order to achieve the goals, the Government has taken very definite steps

and has formulated various schemes.

1.3 Tamil Nadu Educational Scenario

Tamil Nadu has established itself as a model to other States in the field of Higher

Education by making higher education more accessible to the economically weaker sections

of the society hailing from socially backward, rural and marginalized families. In Tamil

rofessional educational institutions including IIT

Madras, IIMs, NIT, MIDS, PSG, Thiagarajar college of Engineering, VIT, BIM, Loyola

College, Madras Medical College etc. Tamilnadu has best Universities such as Madras

University, Anna University, Alagappa University Tamilnadu Agricultural University and

Bharathidasan University etc. Tamil Nadu is a preferred destination for Higher Education,

because it has adequate number of educational institutions, efficient and committed teachers

including infrastructural facilities, due to the strong educational policy advocated by the

Government of Tamil Nadu. The participation of state run Universities in the educational

12
movement is also worth noting. Universities are a key part of the Higher Education System,

which is also known as tertiary education, forming a net-work of institutions that support the

creation of knowledge and the production of higher order capabilities.

The human development index of India is 0.619, while the corresponding figure for

Tamil Nadu is 0.736, placing it among the top states in the country, (The Hindu, 4th July

2008). The state has the highest number (10.56 per cent) of business enterprises and stands

second in total employment (9.97 per cent) in India, (Sixth Economic Census, Government of

India, 2012). In the 2013 Raghuram Rajan panel report, Tamil Nadu was ranked as the third

most developed state in India based on a Multidimensional Development Index.

Tamilnadu education has largely improved in the recent years and is one of the most

literate states in India. Additionally, in terms of literacy growth, Tamilnadu has performed

reasonably well from 2001- 2011. Apart from private, public and government schools, there

are many educational institutes in Tamil Nadu. As on 2011-12, there are 62 Government Arts

and Science colleges, 7 Government Colleges of Education, 148 Government Aided colleges,

14 Government Aided Colleges of Education and 429 self financing Arts and Science

colleges are functioning under the administrative control of the Directorate of Collegiate

Education. There are 5, 10,620 students in Government and Government Aided colleges with

a staff strength of 12,344 teachers in the cadre of Assistant Professors and Associate

Professors. Self Financing Colleges are having a strength of 3, 70,019 students. (Policy Note,

Demand No: 20 - Higher Education, 2012-13)

As on 2011-12, there are 6 Government Engineering Colleges, 3 Government-Aided

Engineering Colleges, 18 Constituent Colleges of Anna Universities and 498 Self-Financing

Engineering Colleges. Besides this, there are 30 Government Polytechnic Colleges, 34

Government-Aided Polytechnic Colleges, 3 Affiliated Polytechnic Colleges and 380 Self-

13
Financing Polytechnic Colleges functioning in Tamil Nadu. (Policy Note, Demand No: 20 -

Higher Education, 2012-13).

Tamil Nadu education system has drastically improved when compared to the

previous years. The standard and quality of education provided at Tamil Nadu universities

and colleges is highly appreciated and admired all across India. Tamil Nadu is known for its

rich and diverse cultural traditions, due to which the cultural and traditional effect can also be

seen in the educational sectors.

1.4 Management Education in India

The simplest definition of management is 'getting things done through people'.

Traditionally, management was considered to be an activity done by instinct, trial and error or

through the exercise of some kind of power and/or charisma. The

Practice of Management that elevated this activity to a professional status and made people

realize that management is an activity that is largely rational and could be practiced

systematically and constantly improved upon. Once this stage was reached, the obvious next

step was teaching people to manage. People already in jobs were trained in aspects of

management through short-term training programs. As the demand for professional managers

grew, the need to educate and prepare youngsters for a career in management, as in medicine

and engineering, was realized and management courses began to be introduced in

conventional Universities and later in dedicated institutions started for this purpose.

If the preferred careers in the 1940s and the 50s were medicine and engineering and in

the 1960s and 70s the IAS and the Central services, the craze since the 1980s has been for

management and IT jobs. As a result, there has been an explosion in the number of business

schools in India. Quantity, as usually happens has led to deterioration in quality and the

present scenario, as Dr. Sinha (2004) in his book Management Education in India:

Perspectives and Challenges has pointed out that there are a handful of excellent institutions

14
surrounded by a sea of near mediocrity. As economic development depends crucially on the

efficient use of resources and management is the key to this, the output of the business

schools becomes a critical input for development.

The growth of management institutions in India in last 15 years has been rapid. Data

on number of business schools est

growth in terms of numbers and often at the cost of quality. The number of MBA seats has

increased by 272.28% in last 5 years from 94,704 in 2006-07 to 3.5 lakhs in 2012, (Hemali

Chapia, Times of India, Feb 28, 2012). The number of MBA seats in India has grown almost

four fold, resulting in a 5-year compounded annual growth rate of 30 per cent. (AICTE Approval

Process Hand Book, 2012-13)

The demand for management talent also started growing with the rate of the growth of

the economy - both in quality and quantity, to manage and capitalize the skills of the human

resource. Between 2000 and 2010 the number of universities and colleges in India saw more

than two fold increase thereby attracting large number of students at both graduate and post

graduate levels.

Due to the surge in demand for management professionals, Corporate India is facing a

problem of supply of quality talent that can undertake the management jobs across functions.

The dearth of talented pool of management graduates pave way existing and upcoming

management educational institutions to grow a greater extent, Amit Bansal (2010). However,

the B-Schools offering MBA programs on their journey towards attracting students and

increasing enrolments face plenty of trouble and the intense competition makes the job hard

for them. At the end of MBA counseling 2013 held in Tamilnadu about 50 self financing

colleges were not able to fill even a single seat and a total of 12,031 seats were vacant, (Daily

Thanthi, July 2013). If this situation persists for the next 5 to 10 years down the line, may

lead to shortage of quality entry level managers. This may widen the existing demand supply

15
gap. However, the number of students who appear for GMAT and CAT continues to rise. The

total number of students who have written various state and national admission tests for MBA

colleges is estimated to be over 500,000, Purple Leap Survey 2010. To sum up, there is a

huge demand for management professionals. The student interest in pursuing management

education from a top B-School continues to rise. However, institutions imparting

management education are struggling to fill-in their seats.

Purple Leap conducted a survey on a sample of MBA aspirants who appeared for

CAT or state MBA exams but did not take admission in any MBA college in 2010. These

students were asked questions pertaining to the reason for not taking admissions and their

future plans. Here are some key analyses from the survey:

83 per cent of the sample cited that quality of management education is not up to the

extent as they perceived. It is the major reason for not taking admission. 12 per cent of

the students cited the reason of 'High Fees' for not taking admission.

87 per cent of the aspirants felt that students from such colleges do not get 'MBA

Type' jobs. They felt that the kind of jobs that the students are getting after the MBA

from such colleges, are available to graduate students as well. The MBA degree from

such colleges does not give any advantage in getting a better job.

Over 90 per cent of such MBA aspirants will try for overseas MBA or will try for a

'Good MBA College' next year.

This clearly indicates that lack of quality education has lead to a situation where

students hesitate to get admissions in tier 2 & 3 colleges.

Havaldar, Krishna K. (2012) addresses various issues associated with different

categories of management institutions operating in India. The major issues such as the quality

of the faculty, students and facilities; pedagogy and recognition; research outputs, executive

training, placements and brand equity are analyzed with respect to different categories of

16
business schools in India: top 30 government and private B-Schools, including (IIMs),

university departments of management studies, private autonomous B-Schools approved by

All India Council of Technical Education (AICTE), university affiliated private colleges,

private institutions not affiliated to any universities nor approved by THE AICTE, private

institutes in collaboration with foreign universities.

1.4.1 Business schools closing down

There was a time when a degree in science, commerce or arts, in that order was

the basic educational qualification sought from potential job-seekers by employers in the

organized sector in India, where vocational education had been neglected for years. Today,

however, many employers seeking to fill up vacancies even for clerical posts demand a

business management degree or diploma from the candidates. An MBA, or any of the other

acronyms that signify one has studied at a B-school, is now de rigueur for a candidate

applying for a job in the private sector.

Consequently, recent years had seen B-schools mushroom across India, with most of

them charging hefty fees for a degree or diploma, many of questionable credibility and worth.

Today, there are more than 4,000 institutions which pride themselves as B-schools

offering management education. Their total capacity exceeds 350,000 students. Just five

years ago, there were less than 100,000 openings in B-schools in India. The number of

engineering colleges and seats has also soared from 550,000 in 2006-07 to nearly 1.5 million

in 2011-12, AICTE. Fortunately, there are signs that the mindless race for a business degree

or diploma is finally slowing down, as students realize that the stiff fees that they shell out for

the courses are really not worth the efforts.

According to the All-India Council of Technical Education (AICTE), which grants

permission to entities to set up higher education institutions including B-schools, about 130

17
institutions offering engineering and management with a total capacity in excess of 10,000

students are winding up operations in 2012.

Many B-Schools are struggling. The Assocham (2013) report says that nearly 180 B-

schools have been shut down last year in major cities like Delhi, Chennai, Mumbai, Kolkata,

Bangalore etc. Around 160 B-Schools are expected to shut down in 2013 and the number is

increasing further. Campus recruitments have gone down by a massive 40 per cent during

2009-2012, says the report. Only 10 percent of MBA graduates from Indian B-Schools apart

from the top 20 get a job immediately after their course whereas 54% of students were able to

get jobs on campus in 2008, (Shutapa Paul, The New Indian Express, Feb 24, 2013). The

Assocham report (2013) further adds that students who participated in the survey said that the

schools promoted their brands only on placement and by boasting about high salaries.

Assocham deduces that the current monthly salary a student get after MBA is a meager Rs

10,000 to Rs 15,000; a far cry from the promises of riches that most B-schools make even

after spending Rs 3 to Rs 5 lakh on a two-year MBA programme.

According to a Crisil report (2012), a shake-out in the business education in India

seems evident as B-schools struggle to fill in their seats with 35 per cent of the total seats

available remaining vacant. As per the Crisil research, the average occupancy rate in 2011-12

declined to about 65 per cent. It believes that many of the B-schools have not been able to

train the students, failing to prepare them to meet the needs of industry. Shortage of skilled

faculty, the absence of tie-ups with industry, high levels of vacancy and growing competition

would result in many institutions closing down, or seeking potential buyers.

Latest figures released by the All India Council for Technical Education (AICTE)

show that 147 standalone B-schools and MBA programmes offered by engineering

institutions across the country closed down in the 2013-2014. The number of postgraduate

diploma programmes in management institutes has also dropped from 606 to 600 in the same

18
period. In Maharashtra, Tamil Nadu and Andhra Pradesh around 24, 23 and 19 MBA colleges

were shut down in 2013-14 respectively. (Ramya. M, Times of India, 4th February 2015).

Business schools face a crisis of confidence. As they struggle to attract students, many are

approaching real estate firms to sell their property or to work out an alternative land use

strategy, (Kalpana Pathak, Business Standard, February 19th 2015).

Of course, B-schools come in different categories in India. The elite, top-rankers

include the Indian Institutes of Management (IIMs), which continue to draw thousands of

students and only just a few hundred get admission. The most prestigious is IIM,

Ahmedabad; till a few years ago, there were just three other IIMs at Kolkata, Bangalore and

Lucknow. In the mid-1990s, the government started two more IIMs at Kozhikode in Kerala

and Indore in Madhya Pradesh. The last few years have seen half a dozen more IIMs being

set up in smaller cities. Only the best of students get admissions on clearing the tough

entrance test. Others who want to pursue MBA have to look for University Departments,

Standalone B-Schools and Self financing colleges.

1.5 Significance of the Study

Management education in India has mindlessly grown to meet the demands of

business and this growth has been only by way of creating new B-schools. The challenge

before the Industries in India does not lay in the supply of talent but rather that of

employability. Indian b-schools churn out large number of graduates every year, a few are

actually employable. A good percentage of management graduates are either not employed

i.e. do not get a job or underemployed i.e. take up a job that is not relevant to them.

The main aim of the study is to address the concern about the quality of MBA

education in B-Schools. The competency mapping approach emphasizes competency

improvements through learning and development practices and the outcomes are focused on

MBA student's competency enhancement. The competency mapping as a tool helps the

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Students to know up front what is expected of them. Students are empowered to become

partners in their own performance development. The study seeks to design strategies to

unleash the potential of the MBA students through effective and efficient learning and talent

fostering practices.

1.6 Competency

There are different definitions to competency; few of them are given below

Competency is a cluster of related knowledge, skills and attitudes that affect

measured against well accepted standards that can be improved via training and

development (Parry,1996)

Competency is defined as characteristics of an individual that leads to

demonstration of skills and abilities which result in effective performance within

an occupational area. Competency also embodies the capacity to transfer skills

and abilities from one area to another (Hogg B, 1989)

A close look of the above mentioned definitions reveal

Competencies are characteristics of an individual

Competencies lead the demonstration of skills and abilities therefore competency

must be demonstrated and hence must be observable. It must not be inferred or

extrapolated

Competencies must lead to effective performance; this means that the

performance of a person with competency must be significantly better than that of

a person without it. Competency thus refers to behavior differentiating success

from merely doing the job.

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 Competency also embodies the capacity to transfer skills and abilities from one

area to another. Competencies cannot be restricted to single job alone but the

person must be able to carry them along

1.7 Competency Model

Competency can be acquired through talent, experience or training, which are

important and needed because they represent the best way to understand, observe and predict

linked to meaningful life outcomes describing how people should perform (Hay Group,

2003). Different levels and types of competencies are formed through individual and

competency illustrating that while some elements above the surface (technical / hard

competencies) are identifiable, measurable and known to others, others (behavioural

attitudinal competencies) are usually unknown to others, more difficult to detect and measure,

yet of significant value. (De Wit and Meter, 2004).

Figure 1.3: Iceberg Competency Model

Competency iceberg model, at an individual level defines competency as a cluster of

Knowledge, Skills, Attitude and other personal characteristics that influence performance on

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a job. One important point of view that needs to be understood is that the competency is not

performance but a qualification to perform. People who deliver work cannot deliver it

effectively without competencies that are required for the work but competency does not

guarantee that people will perform to the required levels. There are many instances wherein

competent people fail to deliver due to other factors apart from competency.

1.8 Competency Mapping

Competency mapping tries to explore beyond the knowledge and skills of a person.

There are two approaches to competency mapping (Chandramowly, 2002) viz. top-down

approach and the bottom-up approach. In the top-down approach competencies needed for

effective or superior performance are identified by expert groups consisting job incumbents,

superiors and subordinates after analyzing organizational objectives. In bottom up approach

the knowledge, skills, motives and attitudes of high performing employees are studied using

appropriate techniques like case analysis, focus group interviews, participant observation,

repertory grid etc., There is another approach known as the Hybrid approach which involves

developing a competency model based on both the models mentioned above along with

theoretical knowledge and institution by experts/HR professionals. After examining

performance on the job, the said competencies are either confirmed or revised based on

outcomes. The researcher proposes to draw the competency profile of MBA students through

mapping their competencies.

1.9 Operational Definition

To have a common understanding the researcher proposes the following operational

definitions for key constructs and terms used in the context of this research work:

Competency is a cluster of related knowledge, skills and attitudes that affect major part of

accepted standards that can be improved via training and development (Parry, 1996)

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Competency Mapping: It is a process of identification of the competencies required to

perform successfully a given job or role or a set of tasks at a given point of time. It consists of

breaking a given role or job into its constituent tasks or activities and identifying the

competencies needed to perform the same successfully. (Sahu R.K, 2009)

1.10 Organization of the Thesis

The thesis is divided into six chapters and the sequencing of the chapters is done as follows:

Chapter 1: Introduction

This chapter introduces the research topic and gives a picture of Higher Education

scenario in India and Tamil Nadu, Management Education in Tamil Nadu and the present

status of MBA programmes. The chapter also discusses the concept of Competency,

Competency model and Competency mapping.

Chapter 2: Review of Literature

This chapter reviews research studies conducted at both international and national

level which is relevant to Management Education Purpose, Status, Challenges & Issues,

Factors influencing Learning & Talent Development of MBA students, Learning of MBA

students in B-Schools, and Competencies vs. Industry Expectations. This also includes

information from Reports, Magazines and Newspaper articles related to Management

Education. Gaps existing in previous research are also discussed following which research

problem is stated.

Chapter 3: Research Framework

This chapter discusses objectives of the research, research questions and hypothesis

framed. A research plan, supporting research questions/hypothesis and relevant statistical

tools are also included. This chapter discusses about the Competency Model for MBA

Students. The limitations of the research are also stated.

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Chapter 4: Analysis and Interpretation

The chapter analyzes the data collected through structured questionnaire and relevant

interpretations were drawn from the outcome to meet research objectives. Appropriate

diagrams, charts and tables are used.

Chapter 5: Findings

A summary of findings derived from the data analysis and related interpretations are

discussed in this chapter. A detailed Competency model for MBA students explaining the

Skills, Knowledge and Attitude of the MBA students is arrived and elaborated within the

scope of this research.

Chapter 6: Suggestions and Conclusion

A list of suggestions which are useful for the stakeholders such as MBA students,

Faculty Members and B-Schools administrator/ promoters are provided in order to ensure the

quality of the Management Education.

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Chapter 2
Review of Literature