Paper Title: “Impact of Indian Management Education in Developing Entrepreneurial Aspirations and Attitudes among Management Students”
Author 1: Dr.B.Gangaiah
Assistant Professor
Department of Business Management
Yogi Vemana University
Kadapa – 516003
Andhra Pradesh, India.
e-mail:
Phone: 09490634391
Author 2: Juturu Viswanath
Research Scholar
Department of Business Management
Yogi Vemana University
Kadapa – 516003
Andhra Pradesh, India.
e-mail:
Phone: 09949312106
Address for Correspondence:
J.Viswanath
Plat No. 511,
GVR Towers (Apartments)
Near RTC Busstand
Railway Station Road,
Kadapa – 516001.
Andhra Pradesh
Phone: 09949312106
Impact of Indian Management Education in Developing Entrepreneurial Aspirations and Attitudes among Management Students
Abstract
The new industrial policy 1991 focused on the rapid industrial developments in India. This led to the drastic economic transformations in India. The new terms called Liberalization, Privatization and Globalization rightly coined with the background of Indian economic context. Indian education system faced a typical phase of paradigm shift as per the global economy demands. New courses were introduced as per the industry needs. During the same time Management Education in India also gained huge demand and reputation. Indian Institute of Management’s (IIM’s) number significantly increased from 1990’s to 2012. Indian industrial and service sectors continuously registering a progressive growth rates, this is one side to a coin and the other is talent crunch. It requires a micro level study on Indian management education. The reach of IIM’s and B-Schools in India is another issue, typically Private Colleges (affiliated to universities) or B-grade colleges are playing vital role in proving management education. In short, there are many problems associated with the Indian management education in developing and motivating the students to become entrepreneurs. Hence, this paper discusses all those issues and concerns with an in-depth analysis.
Keywords: India, Global economy, IIM’s, Affiliated colleges, Management education, Students.
Introduction:
With the mushroom growth of management colleges in India, the quantitative improvisations gradually increased. The Indian management education contributions towards socio-economic considerations are typically not up to the mark due to many reasons. Basic objective of management education is to inculcate business knowledge both in terms of theoretical and practical, developing decision-making skills, developing entrepreneurial attitudes among students, filling gap between the demand and supply of human resources i.e. management professionals to the industries. The real picture of management education in India is quiet different with the above said objectives. In this regard the role of university affiliated managed colleges, faculty, students is decisive.
Qualitative aspects are least considered, simply sending the students out has become the prime motto of the management colleges. The problem areas in this regard are clearly visible; all these situations led to unmatched results of management education towards industry and society requirements. Indian society needs the entrepreneurs than the workers. Basically entrepreneurial attitude begins with the rightly tuned and directed aspirations. Indian government is ever ready to encourage the entrepreneurs through providing initial and developmental assistance. Here the user is not yet prepared! So, where is the problem lies here, it needs an in-depth thinking, analysis and presenting practical recommendations.
Literature Review:
Management education in India formally began in 1953 at the Indian Institute of Social Welfare and Business Management (IISWBM) –the first B-School established by Government of West Bengal and Kolkata University. However, a few institutions like Tata Institute of Social Sciences (1936) and Xavier Labour Research Institute (1949) had already started training programmes for managers in personnel function well before the formal launch of first MBA programme at IISWBM. IISWBM experiment of offering two-year, full-time MBA programme was followed by Delhi University (1955), Madras University (1955), Bombay University (1955) and Andhra University (1957). A few other institutions like Administrative Staff College of India Hyderabad (1956), All India Management Association (1957), and National Productivity Council (1958) were established to promote excellence in management practices, research and education. The Government of India launched Indian Institutes of Management (IIMs) as centres of excellence in Management education in early 1960s. The first Indian Institute of Management was set up in Kolkata in 1961 and second in Ahmedabad in 1962. Elite club of IIMs added new members in 1973 (Bangalore), 1984 (Lucknow) and 1997-98 (Khozhikode and Indore). Currently there are 12 IIMs in the country. Over the years, IIMs have evolved as great brand in Management education across the globe and an enviable benchmark for other institutions in terms of quality of faculty, students, curriculum and placement.
Structure of Management Education in India:
There are presently six types of management education organizations. These are:
(1) Indian Institutes of Management (IIMs) set up by the Government of India.
(2) University departments of management studies.
(3) Colleges (government or private) affiliated to universities.
(4) Private or government institutes approved by the All India Council for Technical Education (AICTE).
(5) Private colleges or institutes not affiliated to any universities nor approved by AICTE and
(6) Private colleges or institutes offering MBA courses in India in collaboration with foreign universities, where degree/diploma/certificate is awarded by the foreign university.
Table 1: Indian Management Colleges Statistics:
Sl.No / Zones / MBA / PGDM1. / Western / 419 / 50
2. / Southern / 395 / 06
3. / South Central / 945 / 27
4. / South West / 277 / 24
5. / Northern / 525 / 85
6. / North West / 472 / 37
7. / Eastern / 150 / 30
8. / Central / 373 / 29
Grand Total / 3556 / 288
Source: AICTE, 2013.
The statistics of Management Colleges in India shows that there are number of sufficient institutions which offering management education.
Table 2: Growth of AICTE approved Technical Institutions in last five years
Year / Management2005-2006 / 1052
2006-2007 / 1132
2007-2008 / 1149
2008-2009 / 1523
2009-2010 / 1940
Source: www.aicte.ernet.in
The growth of Management Colleges in India registered a progressive trend. From 1052 (2005-06) to 1940 (2009-10). This indicates the growing demand for the management education in India.
Table 3: Intake of students for admissions in MBA and Ph.D Courses
AICTE approved intake of students ( seats available for admissions)Program / Level of Course / 2011-12 / 2007-08 / Five year change / Five year change (%)
Management / Post Graduate / 249,710 / 89,369 / 160,341 / 179%
Fellowship & PhD / 178 / 90 / 88 / 98%
Source: AICTE *World Bank, CIA#NASSCOM adopted from: www.DrEducation.com
The Intake of students into MBA and Ph.D courses is increased at the rate of 179% i.e. 89,369 (during the period 2007-08 to 2011-12) for MBA Program at Post Graduation level, with the 98% growth rate in Ph.D programs (during the period 2007-08 to 2011-12).
Entrepreneurship Development: Indian Context:
The word ‘entrepreneur’ is originally taken from the French language where it originally means an organizer of musical or other entertainments. The word has been in use since the 16th century, where it was applied to those who were organized and engaged in military expeditions. In the 17th century the word has been extended to cover architects and contractors engaged in civil engineering activities such as construction, fortification and public works. The old oxford dictionary coined the term entrepreneur as “the director or a manager of a public musical institution, one who gets- up entertainment, especially musical performance”. It was only in the beginning of 18th century that the word was used to refer to economic aspects. Richard Cantillion, an Irish man living in France was the first person introduced the term entrepreneur, in the early 18th century to refer the word entrepreneur to economic aspects. Various experts in their researches have given different meanings and views to the word entrepreneur. Entrepreneurship has acquired a special significance in the context of economic growth and industrial development in the rapidly changing socio economic and socio cultural climates both in developed and developing countries. Small scale industry has emerged as the most dynamic segment with 55 percent of overall values of industrial production. This sector provides 42 percent employment opportunity both for literate and illiterate. It is a state of healthy balance in the country in which entrepreneurs make their respective contributions to achieve the economic development of the nation. With the government policy of encouraging the entrepreneurs, a large number of business enterprises were established in recent years.
Regulatory Body:
Regulation of Management education began in 1987 when All India Council for Technical Education (AICTE) was formed and management education was taken as part of the technical education. AICTE helped in regulating the B-Schools in terms of governance, accountability, transparency in admission and program administration, infrastructure, students-faculty ratio, curriculum, library, laboratories, grant-in-aid for organizing seminars, conferences, faculty development programs, setting up of entrepreneurship development cell, institute-industry interface cell etc.
National Knowledge Commission’s Report (2006) on Indian Management Education in Brief:
National Knowledge Commission’s report on Management Education advocates a greater role of industry in promoting research programs in B-schools as they are the major beneficiaries in terms of steady supply of efficient manpower. Indeed, the industry can sponsor research programs, set up dedicated research chair professorships in specific domains, grant fellowships to doctoral candidates and open their gates for collaborative research projects. Besides, the corporate houses may also encourage some of their senior professionals to participate in research programs and pursue higher education. B-Schools are unlikely to handle the shortage of faculty without active support from industry. The Government of India as well as state governments should also strengthen doctoral research in Management by increasing intake of students in Ph D programs in central as well as state universities and increasing the number of Junior Research Fellowships besides increasing fellowship grants.
There are several challenges of management education, which require change in the character and structure of management education and integration of management education with the corporate sector. As the pasture of management is dynamic in nature, new tools and techniques are always being introduced to improve the competence, efficiency and prosperity of any organization. So is the case with management education. Professional skills should be acquired with practical knowledge, gradually making them experts in diagnosing the symptoms of patients. Just by confining themselves to textbooks, students may not understand business situations as each situation is unique and requires exceptional solutions. Management education in India is not very old; it has taken its practical shape during early sixties with establishment of Indian Institute of Management to train the people with management concepts. After that many institutions, universities have also come forward to provide management education to cater the increasing demand of entrepreneurs and managers. The term ‘attitude’ means mentally prepared state for any known subject. It is a subjective consciousness and that is affected by the environment. The attitude is a kind of lasting inclination. It can be an idiosyncrasy that could be shaped or changed via experience or study. The attitude toward entrepreneurship is an individual's concept about entrepreneurship, assessment and inclination towards entrepreneurial behavior or self-employment. If the individual has a strong attitude for starting a new venture the relationship between attitude and behavior is strong. This individual has a strong inclination towards entrepreneurship.
Significance of the Study:
Quality of human resource plays a vital role in the nation’s development. Sound educational system definitely improves the quality of human resources; in this regard the management education demands a great consideration towards socio-economic development of the country in form of developing entrepreneurs i.e. transformation from student to entrepreneur. But in reality this transformations are not effectively delivered. Hence, this situation demands a study regarding assessing the impact of management education in developing entrepreneurial attitudes through identifying the reasons for this gap and to devise various measures to develop and sustain the entrepreneurial aspirations and attitudes among the management students.
Objectives of the Study:
The following are the objectives for the study:
1. To uncover various factors affecting the entrepreneurial aspirations and attitudes among management students.
2. To assess the influence of current management education on motivating management students towards entrepreneurial considerations and
3. To ascertain the impact of management education in managing entrepreneurial aspirations among management students.
Methodology:
Non Probability Convenience Sampling method was adopted to collect the sample. Both primary and secondary data used for the study. Secondary data is collected from various websites and published articles in various national and international journals. Primary data is collected through questionnaire, which is specifically designed with an intention of getting responses towards entrepreneurial attitudes among management students. The sample is collected from the Rayalaseema Region consists of 4 districts namely Anantapur, Chittoor, Kadapa and Kurnool from Andhra Pradesh State. 25 Management Colleges are considered for the study and the sample includes both teaching fraternity and course pursuing students. The size of the sample is 180 equally chosen from the four cities i.e. 45X4, includes 120 students and 60 faculty members. The tabulated data is analyzed through simple percentages and correlation coefficient.
Data Analysis:
Table 4: Respondents Perception towards Factors affecting the Entrepreneurial aspirations and attitudes among management students with reference to Indian Management Education:
S.No. / Factor / ImpactYes / No
1. / Family and Social Groups / 123(68.33) / 57 (31.66 )
2. / School and College Environments / 148 (82.22 ) / 32 ( 17.77)
3. / Self-Confidence (being independent, self-reliance, sincere) / 162 (90 ) / 18 (10 )
4. / Situations / 133 ( 73.88) / 47 (26.11 )
5. / Frequent Industrial Visits and Interactions with upcoming entrepreneurs / 164 (91.11 ) / 16 ( 8.88)
6. / Inspirational Teaching concerns on entrepreneurship ideologies development / 159 ( 88.33) / 21 (11.66 )
7. / Cultural Influences / 138 ( 76.66) / 42 (23.33 )
8. / Entrepreneurial Development Programs / 166 (92.22 ) / 14 (7.77 )
9. / Social Media / 157 (87.22 ) / 23 (12.77 )
10. / Risk-taking Propensity / 165 (91.66 ) / 15 ( 8.33)
Source: Field Survey (figures in the parenthesis indicates percentages)
Table 4 shows the perception of respondents towards entrepreneurial aspirations and attitudes with regard to management education. All the above mentioned factors possess high impact on developing entrepreneurial aspirations and attitudes among management students here the high influencing factor is entrepreneurial development programs (92.22%).