G S Singh*, Hon. Prof. Guru Nanak Dev University, Advisor CRISIL
Abstract
In this article we look at the snap shot of business school in India. We try to discern a broad pattern in the business schools across India and with limited exposure across the various categories of business schools discuss the functioning of these schools. We also look at the likely reasons behind the existence of the most of the schools that do not make it to the any list of business schools in India but seem to be “profitable”. We arrive at some pointers for the “categories” of schools being discussed. We are of the view that implementation under the frame work evolved around these pointers, will create value addition towards governance, learning out comes and quality. This frame work will enable business schools across categories and across India to make positive contribution towards training the requisite managers better suited for their roles and lifelong learning.
Introduction:
There are 3700 business schools in India. In a city like Pune – there are 400 MBA and PGDM programmes being offered. Given such a concentration and numbers, the competition for students and faculty is really fierce for the majority of the business schools.
There are not enough Academically Qualified (AQ) faculties to service these institutions. And the situation of finding the Director with stipulated requisite qualifications, to head an institute, is still worse.
Majority of the business schools are happy to fill the seats and somehow hold the classes, run courses and act like placement agencies. But the plethora of new institutes all across India has dried up the catchment areas for students for relatively “well running” institutes as well. For example many of the aspirants from the B and C class towns may settle for the school closer to their place of residence rather than travelling the way to metros, Pune or National Capital Region and get admitted to an below average school – high on promises.
A typical business school having AICTE approval, may comply to the norms, like land, class rooms, computer lab, student to faculty ratio but is likely to be headed / promoted by people who are neither true academicians nor professionally qualified. One gets the impression that most of the promoters may not be into professional education for the cause of education and public good.
Some of the well intentioned provisions, like minority status, can be misused for admissions by unscrupulous promoters and management of the business schools. We found that many of the minority status institutes are able to stay viable because of control on admitting majority of the students. Older institutes say in existence for ten years or more, are considered stable and are able to stay afloat and remain “profitable”.
However, most of the institutes are feeling the heat of competition and over supply, and many of these in spite the infrastructure they have put in are at a loss to figure out, how to start on the quality journey to attract students, faculty and recruiters.
Premise
Any product or service has to be measured from the point of view of an end user. We need to see the quality of our output in greater details and in its final form before we even start evolving a plan of the higher education institute. For this let’s take for example the business school and its deliverable products such as the students, services – meaning consultancy, research and thought leadership.
What a business school graduate should be able to deliver and achieve in the organization he / she joins? But as such it’s not a finished product for ages to come which will keep on performing on the same lines as though it’s a well manufactured product from a six sigma factory. It’s an intelligent human being with expected value addition by the business school so that the learning and development becomes a self propelling proposition beyond the business school education. Let’s enlist these required value additions:
· At the lowest level – the market demands that a business school graduate should be able to perform the day to day function of the industry / corporate she joins.
· These functions could be:
· Basics of sales and marketing, basics of accounting, proficiency in business communication, report writing and basic business plan, balance sheet and team skills.
· The above skill- set capabilities if imparted properly to the students; will make them perform as good field force with avenues to become senior managers in the organization as they deliver.
· Most of the 3700 business schools in India with little more clarity in governance and in vision and mission, can gear themselves up for the above kind of value adds for the students.
· Presently the students from these schools may command salaries from Rs.1.5 lac per annum to Rs.4.0 lac per annum.
· These business schools should consistently try to beef up their learning infrastructure and teaching resources by focusing on the enhancing and delivering the value additions for the roles they are preparing the students for. For this the business school should also try to bring in more exposure of business through guest faculties and if possible summer internship programme so that the product offered proves useful and has decent coefficient of learning.
Proliferation of the business schools
The Schools in the lowest category
· These business schools can play on the aspirations of the students who have been poor in studies, poor in exposure and felt to have missed the bus already. Most of these students hail from the tier 3 and blow towns and villages. Parents also aspire for their children to do an MBA and become a manager.
· As mentioned above – the role for these students, coming out of a tier two or good tier three business schools, could be a field role like a senior sales person, an accounts executive or an assistant HR executive for many years to begin with. Exception to the above over a period of time, can be brought in by the schools where the learning is of better quality, team building and group learning is encouraged , pedagogy is dynamic and there is continual effort to enrich the teaching resources both as PQ and AQs.
Tier Three and Two Category Business Schools
· This category could be that the schools are already in existence for 5 years or more. Some could be there for more than 10 years. They have what we call more recall coefficient and most of them are working hard to maintain their place among the second and third tier schools and also competing with the schools which are comparatively new but have the benefit of promoters and governing councils having experience of academics, education administration and industry with in India and abroad. The old timers may have the directors from academia who might have had a stint in regulatory bodies like AICTE, UGC, Universities and others. The new ones are taking the faster and already tested path with some contextualization to be ahead in the race and the many of the older ones are suffering because of the baggage carried by the top management. There is another set of schools which boasts great infrastructure – wifi campus, ac class rooms, ac library and spend a lot on advertising but are short on excellent faculty resources and at times on scruples. However these schools build their brands by advertising blitz and tall claims. They also secure some understanding with lesser known schools abroad and thus claim to be world class.
Challenges and Opportunities
· Most of our hopes and frustrations may get validated by tier two and three set of schools. Challenge is to convert every one of these schools into the best category schools in India and hence bring in more and more competitive excellence. Many of the schools in spite of having all the infrastructure and stable faculty have hit the limitation of inertial momentum, where in they are not able to show better results year after year and are struggling to get the better quality students, thus are likely to lose steam with every passing year.
· The biggest problem is when many of these schools, remain in their silos and the management attitude is, to show themselves as running the best school but not work on making their school one of the best. These schools manage to get all the mandatory accreditation and also comply to the regulatory requirements, so that they can run their courses unhindered. Students and parents do get taken in by the approvals secured by the business schools without realizing that these accreditation and approvals are actually conformity to the minimum they should have in the scale.
· Quality of teaching and learning in many of these schools, though better than the lowest rung schools but may have stopped evolving because of complacency.
· Environment and zeal to change for the better are generally conspicuous by their absence in these schools.
A Framework for Achieving Continual Excellence
How do we go about bringing in quality improvement and culture of learning?
Vision and Mission
· Quality of purpose and quality for purpose needs to be over encompassing part of the frame work for any business school. A vision and mission evolved with respect to quality of purpose and its review and validation by all the stake holders should be part of the accepted process. The continual improvement in the overall quality of governance is one of the outcome of frame work driven by vision and mission.
Faculty - Develop or Parish
· Good faculty for higher education in India is just not available. Problem has financial and societal history and absence of good quality research in our university system has compounded the problem beyond any short term solution. We are taking our own time to attract the faculty of Indian origin from US and other universities. IFMR institute of management’s efforts are worth emulating in this regard. Have in-house quality research jointly with world class institutions abroad and get the faculty by offering research opportunities and other incentives.
· Another laudable effort at a substantial cost is being undertaken by IBS Hyderabad. Full time research-scholars are engaged with stipend double that of many institutes offering in India. A pre doctoral immersion assignment abroad with an external guide, after 2 to 3 years into research is funded by the institute. It’s a programme designed to show very good results over long term with output as faculty, capable of producing quality research output. A programme designed on the above lines can benefit all the institutions with a vision to become world class.
· Exposure to the best practices, by way of interaction and networking is an established practice all around the world. However, in India, this exercise seems to be done more in letters than spirit. The practice is limited to the short trips abroad by the top management. These are more of photo sessions to be published in the school magazine rather than a serious effort on meaning full engagement with the better schools abroad. Most of the times MoUs signed during these visits are more for student’s jaunts abroad than a value added exchange.
· A well thought out road map and programme for faculty development with incentives and challenges is required to be in place.
· Business schools need to lay emphasis on faculty exchange and student exchange programmes with the other schools with in India and abroad.
· Innovation in collaborative teaching, research incentives and faculty development can lead to a vibrant learning environment. However most of the second and third rung schools are hardly pursuing these ideas and practices. Collaboration in teaching and research at intra and inter school level and sharing of best practices should be taken as a serious goal.
· The schools need to focus on serious and engaging activities within and without. Some of these could be:
· KRA for the faculty in improving teaching and learning in their respective subject areas and beyond. In case the syllabus is set by the university or AICTE kind of body, the KRA will focus on learning methodology and enhancement to learning in the class room and beyond. In case of an autonomous institute it would also mean to frequently update the courses and course ware after discussing with the peers and other stake holders.
Industry Interaction and collaboration
Industry interaction and interface needs very innovative approach if the school does not have location advantage. A cluster or collaborative approach among the schools with no or very little location advantage can act as a catalyst.
· ICT technology can facilitate the interaction without really making the corporate seniors to travel. We have seen initial impact of the leverage of ICT at IIM Shillong, the corporate seniors are more willing to interact with the students and faculty because of the no pain of travel involved. The ICT infrastructure can also make the students learning much more extensive and teaching more enhanced and advanced.
Research
· Research is one activity which has a very visible impact towards making the environment vibrant and conducive to learning. It’s a part of KRA for an institute to understand the local, national and international problems and issues and address these by research, problem solving and continual interaction and involvement.
1. It will also help institute to think big and get involved in grand challenges, local and regional problem solutions.
2. Collaborative teaching and research should be evolved as an institutional policy.
Towards Sustainable Management
· It’s a buzz word as well as a very timely intervention required in business teaching and training approach. Sustainable management, forming the core of curriculum, in every subject taught and covered at the business schools, will go a long way in creating young global manager with sustainability of social, environmental and geographical resources. ASPEN Institute has been doing a good work and has developed a matrix and framework to prepare for the sustainability criteria, and learning.
With basics in place and processes and systems implemented, to validate and fine tune the vision and mission as institutes go forward, we can really bring in lot of value add for all the stake holders. Majority of the schools out of 3700 will not only get benefitted by a continual and neutral evaluation but also will be able to contribute a lot towards nation building efforts.
The case of top rung business schools has to be studied and analyzed w.r.t different parameters. To our mind a top rung business school in existence for four decades, getting the best students in the country and comparatively more autonomous than the many top rung business schools running as university departments – has to definitely move into the international league on all the parameters rather than being top in some and lopsided in others. The systems, processes and good governance has to be in place by default for these schools. Where these schools should be excelling are in the following areas:
a. A vibrant vision and mission – owned by every constituent of the school, be it top management / promoters – actually they should be evolving and driving it, be it faculty, administration, students – . Students getting selected will be as per their fitment to the culture and areas of excellence of the school.
b. Attracting and keeping the best of faculty. Most of the top schools are in some way or the other govt. funded and controlled. Rules of appointment to faculty positions are more like govt. service rules. The security of service is more or less granted and incentive for consulting is more monetary than academic. Work environment though better than many business schools can be elevated by good governance to an exciting and quality research output level.
c. A vibrant collaborative programme with the similar and better schools in the world.
A continual show casing of world class research, consultancy, thought leadership, collaborative development of teaching and research resources, students value add beyond themselves and attitude to make a grand and real impact in the business, society and the world.
d. Powerful and innovative drivers need to be adopted to create and promote blue ocean industries, IPRs and entrepreneurs. The product of the schools and the faculty of the school – see themselves as problem solvers par excellence. The school produces world managers with inclusive learning and education. For example the course work will not be only management but will also have liberal arts, science and technology and other creative subject areas. Idea is that problems of the future will need solutions approaches coming from our understanding of philosophy, history, social sciences and tools of other fields, like life sciences, physical sciences, to solve.
e. Many top schools in India are stand alone and that could be a big constraint in innovation. To quote Lord Sainsbury's definition, the innovation is "the successful exploitation of new ideas." They don't stop with the invention. They turn their inspirations into reality. Entrepreneurs can fit this definition to quite an extent . But for ideas and innovation to happen, a vibrant campus across field - engineering, sciences, liberal arts - interaction and researched is a necessary condition. Why MITs, Stanford and campuses like UC Berkley lead in scientific and social entrepreneurs, because they leverage the developments across fields, innovations and managerial talents to converge to a successful outcome. Having said that this kind of campus culture also helps in germinating the other components and culture for development – e.g. Silicon Valley, where you have almost best support system at hand to start a start up, making it to a big enterprise and able to get noticed and so on.
f. Schools will have to make a beginning as thought leaders in their chosen field – which in turn will be dictated and evolved by vision and mission. These schools need to come out with newer line of thinking and curriculum. For example teaching failure and how it leads to success, how vision and mission can be the DNA of an enterprise, scenario building research can geminate the seeds of designing products and companies of the future. To give an example, why not have a course on entrepreneurship and start up where the students scan and understand the research and product ideas from across the res. Labs in the campus or beyond, join hands with the IPR owners and come out with a feasible plan for a start up and take it to execution.
g. Visiting faculty, Students , collaborative teaching and research with other schools around the world and with in the country – again this choice has to be dictated by the vision and mission – will not only enhance the standing of the schools but will also help best of the talents contributing towards the achievements of the school.
Another area where the top schools can show the way is on boosting productivity of higher education in India by not only utilizing their resources optimally. By utilizing efficient and innovative management practices, the business school can bring down the cost of a degree substantially with out compromising on the quality. Some of the areas in managing the higher education, where innovation and efficiency could be brought in are:
Using technology support to impart the instructions efficiently. Higher education is all about enhancing ones learning. It makes sense that technology and on line resources be used to acquire pre requisite understanding and learning and a mentor or a teacher enhances that learning in the class room. Many institutes are already doing this in India but most of these are in the private sector. These institutes are also able to deliver quality learning by using more of part time quality faculty as mentors.
Using Shared resources. The biggest pain point in Management education, if we ask any administrator or director, is the non-availability of quality faculty. As mentioned in this paper above some of the institutes have embarked upon a costly and long term programme to develop quality faculty in house. However there is still a lot of scope available to leverage the quality faculty with in an institution and across institutions. Many schools ask their star faculty to teach, utilizing the biggest class room available. This practice is old, at CALTECH, physics lecture series by Feynman used to be conducted in the auditorium. At technical university of Delft, Netherlands, the undergraduate physics classes by Ted Young were conducted in a dome to 600 students. Subsequently the assignments are overseen by the graduate teaching assistants. With ICT infrastructure in place, some institutions are already increasing teaching delivery of their star faculties by putting big video screens in the multiple class rooms for a lecture. The future could be that a reknowned star faculty lectures are streamlined over the net in a syndicated manner, thus leveraging the best of teaching across the globe with economy of scale.
Improving efficiency in core support services*. Like any other enterprise, efficiency improvent by leaner processes in service functions like management, student services, auxiliary power supplies and air conditioning, purchasing can reduce the cost substantially. There are some private schools in India taking these services very seriously with continual cost efficiency. However this cost reduction as of now may not be reducing the cost of the degree for the students.
Other functions such as hostel services, mess and cafeteria services, logistics and guest house services can also be managed innovatively and may generate revenues and profits to bring the cost of a degree.
A small study by Mackenzie* has shown that the cost efficiency could be of the order of 25%.
Mandated GER is to be double for higher education from present 14% to 30% by 2020 ( HRD minister in Jaipur РApril 2011). The resources required to achieve the above are not within the reach of the govt. However a 25% average reduction in the cost of a degree can help increase the GER by 25% with minimal extra provisions. Institutes need to publish the cost of degree and the best practices. Accreditation also can bring cost of degree as an important parameter and funding agencies will have a raison d'̻tre to fund efficient and quality institutes.
Conclusions: In this paper we have summarized the state of business education in India briefly and tried to categorize the institutions and suggested some best practices being followed and to be followed. We have enumerated a frame work / road map to lift the quality of the schools in each category. For the top schools we have suggested some inputs to be considered. We have also mentioned that the top schools can take a lead to bring in efficiency in productivity revolution, so much a need of the hour for increasing the GER from 14 to 20% with constrained resources.
*Boosting productivity in US higher education, APRIL 2011, Adam Cota, Kartik Jayaram, and Martha C. A. Laboissière. http://e.mckinseyquarterly.com/15a3c74c1layfousiblvux3aaaaaaatxjrnhcjvo5i4yaaaaa
*View expressed in the article are personal views of the author
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