The globalisation of management education and the value of AACSB accreditation. Stephen Watson November 2009

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1 The globalisation of management education and the value of AACSB accreditation Stephen Watson November 2009

2 Overview The globalisation of management education The nature of accreditation The spread of international accreditation of business schools Value and costs of accreditation AACSB accreditation

3 The globalisation of management education Business schools must and do, teach about the globalisation of business Business schools are operating globally by: Opening campuses in other countries Recruiting students from other countries Recruiting faculty from other countries Many leading business schools are global businesses

4 The nature of international business school accreditation Characteristics of a good school or programme are defined Process exists for testing whether the school has those characteristics Process reapplied every five years or so

5 AACSB accreditation AACSB founded in 1916 Accreditation established early Went international in 1996 Mission based like ISO9000 Schools must demonstrate that they meet each of 21 different standards

6 The spread of international business school accreditation Large and increasing AACSB, EQUIS, AMBA and at least six other agencies AACSB estimates 12,000 business schools worldwide: less than 10% with any international accreditation Many schools achieving several international accreditations, in addition to national accreditations and general quality assurance like ISO 9000

7 Current spread of three international business school accreditations Total = 708 AACSB (570) 506 (71.5%) 19 (2.7%) 40 (5.7%) 5 (.7%) 30 (4.2%) 29 (4.1%) 79 (11.2%) EQUIS (118) AMBA (153) Source: AACSB analysis of publicly available data as of September 2009

8 Value and costs of accreditation Value to who? Students Employers Business Schools Partners 8

9 Value for Students and Employers Accreditation provides quality assurance of process and absolute standards Accredited schools can be distinguished from non-accredited ones - thus allowing students and employers to narrow the set of schools they are considering for entry or for choosing potential employees 9

10 Value for Schools The accreditation process can encourage staff alignment External demands can lead to genuine improvement of process and achievement Demonstrating quality when prejudices exist against your institution or country Improving a market position within the school s country or region 10

11 The Value for Partners Accreditation provides quality assurance to potential partners, thus enhancing the attractiveness of a school Accreditation of a partner school gives you confidence that the partner is providing good quality education to your students studying there 11

12 Costs of accreditation Financial Quality managers Staff time

13 AACSB accreditation Extent of AACSB accreditation Process of accreditation Eligibility criteria Standards

14 AACSB members and accredited members (August 2009) Region Members Accredited In process Estimated # Schools with Business Degrees Africa (Sub-Saharan) Asia (excl. Western Asia) ,150 Europe ,930 Latin America & Caribbean Western Asia & North Africa , Northern America ,714 Oceania Totals 1, ,974

15 Process of AACSB accreditation Become a member Complete the Pre-Accreditation Eligibility Application form AACSB s Pre-Accreditation Committee decides if you are eligible PAC makes recommendation to the Accreditation Co-ordinating Committee

16 Process of accreditation If ACC agrees, PAC appoints a mentor Mentor visits to discuss with you how close you are to the 21 standards You agree with the mentor what needs to be changed An accreditation plan is drawn up and approved by PAC School works with mentor on changes identified in the plan

17 Process of accreditation When the mentor and the School are agreed that the School is ready for evaluation, AACSB s Initial Accreditation Committee is asked to authorise a self-evaluation team with a Chair, who replaces the mentor at this stage to work with the school on its application SER is written, and three-person team visits Recommendation of team is told to the School, and goes to the IAC, who make a recommendation to the Board

18 AACSB Eligibility criteria A. A collegiate institution seeking AACSB accreditation must be a member of AASCB International B. An institution seeking accreditation by AACSB must offer degree-granting programs in business or management. C. Degree programmes must be supported by continuing resources D. All degree programmes offered by the institution at all locations must be reviewed simultaneously. E. Consistent with its mission and its cultural context, the institution must demonstrate diversity in its business programs. F. The institution or the business programs of the institution must establish expectations for ethical behavior by administrators, faculty, and students. G. At the time of initial accreditation, a majority of business graduates shall be from programs that have produced graduates during the two most recent years.

19 AACSB Standards: Strategic Management Standards 1 Mission statement 2 Intellectual contributions 3 Student mission 4 Continuous improvement objectives 5 Financial strategies

20 Standard 1: Mission statement The school publishes a mission statement or its equivalent that provides directions for making decisions. The mission statement derives from a process that includes the viewpoints of various stakeholders. The mission statement is appropriate to higher education for management and consonant with the mission of any institution of which the school is a part. The school periodically reviews and revises the mission statement as appropriate. The review process involves appropriate stakeholders.

21 Standard 2: Intellectual contributions The mission incorporates a focus on the production of quality intellectual contributions that advance knowledge of business and management theory, practice, and/or learning/pedagogy. The school s portfolio of intellectual contributions is consistent with the mission and programs offered.

22 Standard 3: Student mission The mission statement or supporting documents specifies the student populations the school intends to serve.

23 Standard 4: Continuous improvement objectives The school specifies action items that represent high priority continuous improvement efforts.

24 Standard 5: Financial strategies The school has financial strategies to provide resources appropriate to, and sufficient for, achieving its mission and action items

25 AACSB Standards: Participant Standards 6 Student admissions consistent with mission 7 Student retention policies consistent with mission 8 Support Staff sufficiency - student support consistent with mission 9 Faculty sufficiency and student/faculty interaction principles (participating and supporting faculty) 10 - Faculty qualifications (academically and professionally qualified) 11 Faculty management and support 12 Aggregate faculty and staff educational responsibilities 13 Individual faculty educational responsibilities 14 Student educational responsibilities

26 Standard 6: Student admissions consistent with mission The policies for admission to business degree programs offered by the school are clear and consistent with the school s mission

27 Standard 7: Student retention policies consistent with mission The school has academic standards and retention practices that produce high quality graduates. The academic standards and retention practices are consistent with the school s mission

28 Standard 8: Support Staff sufficiency - student support consistent with mission The school maintains a support staff sufficient to provide stability and ongoing quality improvement for student support activities. Student support activities reflect the school s mission and programs and the students characteristics.

29 Standard 9: Faculty sufficiency and student/faculty interaction principles The school maintains a faculty sufficient to provide stability and ongoing quality improvement for the instructional programs offered. The deployment of faculty resources reflects the mission and programs. Students in all programs, disciplines, and locations have the opportunity to receive instruction from appropriately qualified faculty.

30 Standard 10: Faculty qualifications The faculty of the business school has, and maintains, current expertise to accomplish the mission and to ensure this occurs, the school has clearly defined processes to evaluate individual faculty members contributions to the school s mission. The school specifies for both academically and professionally qualified faculty, the required initial qualifications of faculty (original academic preparation and/or professional experience) as well as requirements for maintaining faculty competence (intellectual contributions, professional development activities, or practice).

31 Standard 11: Faculty management and support The school has well-documented and communicated processes in place to manage and support faculty members over the progression of their careers consistent with the school s mission. These include: Determining appropriate teaching assignments, intellectual expectations, and other components of the faculty member s professional responsibilities to the school. Providing staff and other mechanisms to support faculty in meeting the expectations the school holds for them on all mission-related activities Providing orientation, guidance and mentoring Undertaking formal periodic review, promotion, and reward processes Maintaining overall plans for faculty resources

32 Standard 12: Aggregate faculty and staff educational responsibilities The business school s faculty in aggregate, its faculty sub-units, and individual faculty, administrators and support staff share responsibility to: Ensure adequate time is devoted to learning activities for all academic staff members & students. Ensure adequate student-academic staff contact across the learning experiences. Set high expectations for academic achievement & provide leadership toward those expectations. Evaluate instructional effectiveness and overall student achievement. Continuously improve instructional programs. Innovate in instructional processes.

33 Standard 13: Individual faculty educational responsibilities Individual teaching faculty members: operate with integrity in their dealings with students and colleagues. keep their own knowledge current with the continuing development of their teaching disciplines. actively involve students in the learning process. encourage collaboration and cooperation among participants. ensure frequent, prompt feedback on student performance.

34 Standard 14: Student educational responsibilities Individual students: operate with integrity in their dealings with academic staff and other students; engage the learning materials with appropriate attention and dedication; maintain their engagement when challenged by difficult learning activities; contribute to the learning of others; perform to standards set by the faculty.

35 AACSB Standards: Assurance of Learning Standards 15 Management of curricula 16 Undergraduate learning goals 17 Undergraduate educational level 18 Masters level general management learning goals 19 Specialized master s degree learning goals 20 Masters educational level 21 Doctoral learning goals

36 Standard 15: Management of curricula The Faculty uses well documented, systematic processes to develop, monitor, evaluate, and revise the substance and delivery of the curricula of degree programs and to assess the impact of the curricula on learning. Curriculum management includes inputs from all appropriate constituencies which may include academic staff, support staff, administrators, students, academic staff from non-business disciplines, alumni, and the business community served by the Faculty.

37 Standard 15: Management of Curricula The standard requires use of a systematic process for curriculum management but does not require any specific courses in the curriculum. Normally the curriculum management process will result in an undergraduate degree program that includes learning experiences in such general knowledge and skill areas as: Communication abilities. Ethical understanding and reasoning abilities. Analytic skills Use of information technology Dynamics of the global economy Multicultural and diversity understanding. Reflective thinking skills.

38 Standard 15: Management of curricula Normally, the curriculum management process will result in undergraduate and master s level general management degree programs that will include learning experiences in such managementspecific knowledge and skills areas as: Ethical and legal responsibilities in organizations and society. Financial theories, analysis, reporting, and markets. Creation of value through the integrated production and distribution of goods, services, and information. Group and individual dynamics in organizations. Statistical data analysis and management science as they support decision-making processes throughout an organization. Information technologies as they influence the structure and processes of organizations and economies, and as they influence the roles and techniques of management. Domestic and global economic environments of organizations. Other management-specific knowledge and abilities as identified by the school.

39 Standard 16: Bachelor s or undergraduate level degree: knowledge and skills Adapting expectations to the Faculty s mission and cultural circumstances, the school specifies learning goals and demonstrates achievement of learning goals for key general, management-specific, and/or appropriate discipline-specific knowledge and skills that its students achieve in each undergraduate degree program.

40 Standard 17: Undergraduate educational level The bachelor s or undergraduate level degree programs must provide sufficient time, content coverage, student effort, and student-faculty interaction to assure that the learning goals are accomplished.

41 Standard 18: Masters level general management learning goals Participation in a master s level degree program presupposes the base of general knowledge and skills appropriate to an undergraduate degree. Learning at the master s level is developed in a more integrative, interdisciplinary fashion than undergraduate education. The capacities developed through the knowledge and skills of a general master s level program are: Capacity to lead in organizational situations. Capacity to apply knowledge in new and unfamiliar circumstances through a conceptual understanding of relevant disciplines. Capacity to adapt and innovate to solve problems, to cope with unforeseen events, and to manage in unpredictable environments. Capacity to understand management issues from a global perspective Adapting expectations to the school s mission and cultural circumstances, the school specifies learning goals and demonstrates master s level achievement of learning goals for key managementspecific knowledge and skills in each master s level general management program.

42 Standard 19: Specialized master s degree learning goals Participation in a master s level program pre-supposes the base of general knowledge and skills appropriate to an undergraduate degree and is at a more advanced level. The level of knowledge represented by the students of a specialized master s level program is the: Application of knowledge even in new and unfamiliar circumstances through a conceptual understanding of the specialization. Ability to adapt and innovate to solve problems. Capacity to critically analyze and question knowledge claims in the specialized discipline. Capacity to understand the specified discipline from a global perspective Master s level students in specialized degree programs demonstrate knowledge of theories, models, and tools relevant to their specialty field. They are able to apply appropriate specialized theories, models, and tools to solve concrete business and managerial problems. Adapting expectations to the schools mission and cultural circumstances, the school specifies learning goals and demonstrates achievement of learning goals in each specialized master s degree program.

43 Standard 20: Masters educational level The Master level degree programs must provide sufficient time, content coverage, student effort, and studentfaculty interaction to assure that the learning goals are accomplished.

44 Standard 21: Doctoral learning goals Doctoral programs educate students for highly specialized careers in academe or practice. Students of doctoral level programs demonstrate the ability to create knowledge through original research in their areas of specialization. Normally, doctoral programs will include: The acquisition of advanced knowledge in areas of specialization. The development of advanced theoretical or practical research skills for the areas of specialization. Explicit attention to the role of the specialization areas in managerial and organizational contexts. Preparation for teaching responsibilities in higher education (for those students who expect to enter teaching careers). Dissertation, or equivalent, demonstrating personal integration of, and original intellectual contribution to, a field of knowledge. Other areas as identified by the school.

45 EQUIS VV AACSB History Process differences Differences in characteristics assessed

46 EQUIS vv AACSB: History AACSB founded 1916 Early membership tests changed slowly into accreditation by the 1940s AACSB s internationalising led to EFMD forming EQUIS in1997

47 EQUIS VV AACSB Different processes EQUIS simpler EQUIS SER plus visit AACSB pre-application, mentor, SER plus visit AACSB takes longer AACSB process gives more opportunity for meeting standards or withdrawing AACSB based on performance relative to mission; EQUIS on absolute standards

48 EQUIS VV AACSB Slightly different characteristics assessed EQUIS but not AACSB explicitly concerned with: Internationalism Corporate connections Public contributions AACSB but not EQUIS stresses: Process of strategy formation and use of strategy Faculty qualification Assurance of learning

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