CATAPULTING OF AP BASED B-SCHOOLS INTO HIGH GROWTH TRAJECTORY A STRATEGIC APPROACH

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1 7 CATAPULTING OF AP BASED B-SCHOOLS INTO HIGH GROWTH TRAJECTORY A STRATEGIC APPROACH Dr. Tapal Dulababu * Professor & Principal, The Oxford College of Business Management, No.32, 19th Main, 17th B Cross, Sector IV, HSR Layout, Bangalore ABSTRACT The State of Andhra Pradesh is one of the biggest states of India and well known for the growth of B-schools in terms of both number of colleges and intake as well. This paper analyses whether AP based B-schools are doing their business to the level of the top rated B-schools. Media has been rating the B-schools in India since 21. Therefore, this paper investigates the effectiveness of B-schools in India with respect to intellectual capital, admission & placement, infrastructure, industry interface, and governance on one hand and suggests the strategies to improve and balance the factors to upgrade the B-schools in AP to deliver the goods as per the expectations of the industry and society. 1. INTRODUCTION Business today is being buffeted by major gale of force winds-globalization, liberalization and technology, are most important among them and is resulted in constant churn, competing and change. In such a hostile and dynamic environment incremental change will not suffice. Organizations have to radically transform themselves continuously. The top most task in positioning an organization along a permanent transformational track. BRIC report of Goldman Sachs Predicts that India s economy will be the third largest in the size after the U.S. and China by 25. The medium age in India will be 23.4yrs. The high proportions of young people are expected to automatically allow for robust economic growth. Further we are in a world of convergence brought about not just by technology, but also by the process of globalizations, by the sharing of information and by the fusion of knowledge domains. Globalization led convergence promotes collaborations, information convergence enables connectivity, technology-led convergence stimulates creativity and knowledge-led convergence build competencies. In order to survive and grow in the current highly competitive and rapidly changing global business environment, the expectations of business and industrial organizations from business schools are rising. B-schools can groom managers to meet the challenges by imparting high quality education with an international orientation. A good business school ultimately has to be judged by the equality of the business leaders and highly competent professional managers it produces.such schools should see their roles as developers of change agents, knowledgeable, problem solving, creative thinking, effective team members and team leaders, entrepreneurial risk-taken, and persons who acquire deep theoretical insights with skills to apply then. Charles

2 8 Baden Fuller says, The missions educate and develop aspiring young managers. It will shape management practices in future. The State of Andhra Pradesh is one of the biggest states of India and well known for the growth of B-schools in terms of both number of colleges and intake as well. This paper analyses whether AP based B-schools are doing their business to the level of the top rated B-schools. Media has been rating the B-schools in India since 21. Therefore, this paper investigates the effectiveness of B-schools in India with respect to intellectual capital, admission & placement, infrastructure, industry interface, and governance on one hand and suggests the strategies to improve and balance the factors to upgrade the B- schools in AP to deliver the goods as per the expectations of the industry and society. 2. OBJECTIVES OF THE STUDY The study focuses on the trend and growth of management education in terms of number of B-schools and intake of students and also to study the effectiveness of management education in terms of intellectual capital, admission and placement performance, infrastructural facilities, interaction with the industry and governance for the last three years i.e. 22, 23, & 24 in comparison with top rated B-schools in India. Further this study investigates whether locations does influence on the effectiveness of B-schools of AP. 3. METHODOLGY 3.1 Data Type and Sources: The data for the study is basically secondary data. All India Management Association(AIMA) has been conducting surveys of Best B- schools and rating the B-schools for the last 3yrs and, published the same in their monthly journal Indian Management. The following are the details of the sources of data. a. Indian Management vol. 43, issue no.9, Sept 24 b. Indian Management vol. 42,issue no.12, Dec.23 c. Indian Management vol. 42, issue no.1, January 23. Further for the data related to growth of B-schools the following sources are used: d) Universities of Excellence, Andhra Pradesh, Indian Express Group, 22, Hyderabad Page 37 to 38 e) Commissionerate of Technical Education(through personal interview) 3.2 Data Classification, Tabulation & Analysis: The data related to B-schools of AP and top rated B-schools of India collected from the above stated sources and tabulated as: 1) Table1: Business Schools in Andhra Pradesh to show the growth of business schools in number and intake of students.

3 9 2) Table2 : Distribution of Business Schools and intake in Andhra Pradesh as on , University area wise to show number of Business Schools and intake capacity under different University areas. 3) Table3: Analysis of the selected features of the B-Schools in Andhra Pradesh for 22, 23 & 24, to show where the AP B-schools stand with respect to the features. 4) Table4: Analysis of the selected features of the top rated Business Schools in India for 22, 23 & 24 is to show where do the top rated B-Schools in India stand in terms of the features. 5) Table5: Analysis of features affecting the effectiveness of management education in Andhra Pradesh for 24.This is to show whether location of the B- schools affect the effectiveness of management education in AP The data used in the paper is analyzed by the percentages, arithmetic mean, standard deviations unbiased (for those samples less than 3) coefficient of variations and t-test. Percentages is to know the general trend of increase, Arithmetic mean is to assess the average score of the features and standard deviation is to find fluctuation in the scores of features, coefficient of variation to assess the consistency level in the features of B-schools and compare to that subsequent previous periods and t-test to make analysis of difference in the features before the location of B-schools of AP 3.3 RESEARCH HYPOTHESES: The following are the research hypotheses formulated. 1) Ho: There is no significance difference in the change score of intellectual capital between the B-schools located in Hyderabad and Secunderabad and other places. 2) Ho: Admission criteria and placement performance do not differ significantly between the B-schools of twin cities and other places of AP 3) Ho: Infrastructural facilities do not differ significantly between the B-schools of twin cities and other places of AP 4) Ho: Industry interface do not differ significantly between the B-schools of twin cities and other places of AP 5) Ho: Governance features do not differ significantly between the B-schools of twin cities and other places of AP 6) Ho: Overall scores (performance) of B-schools of twin cities do not differ from the B-schools of other places of AP 4. FINDINGS OF THE STUDY There is strong evidence that quantum growth is high as far as AP Based B-Schools concerned. Further it is observed that intake of students has also been growing radically (See Table1). The distribution of colleges offering MBA program is concentrated under Osmania & Kakatiya Universities (76 %) when compared to that of Andhra & Nagarjuna & S.V & S.K University areas.(see Table2).Further it is observed that the distribution of number of B-schools and intake of students is more or less in the same direction. Coming to the performance of AP B-schools measured in terms of different features is stated as follows:

4 1 a) Intellectual capital measured in terms of number of faculty, their qualifications such as Ph.D., Industry Experience, and research contributions. The average score of top rated B-schools is clustering around 9 plus with minimum fluctuations from 22-4.Where as for AP B-schools, the average use for intellectual capital is around plus or minus 3 and fluctuating the high degree. The inconsistency level is on increasing trend (See Table 3 & 4) b) Admission & Placement is defined as criteria used for (CAT, MAT, XAT, CET) Admissions & placement performance is measured in terms of number of recruiters visited campus, number of offers made per student and average salary offered etc. For top rated and average score is 9 plus and is on increasing trend from 22 to 24.where as for AP B-schools it is just 3 plus which is far below and further fluctuating widely ( See Table 3 & 4). c) Infrastructure is defined and measured based on area of the building, d) Number of books journals in the library, number of computer available for the Students, Internet facility, hostel facility, student-facility ratio and so on. For top B-Schools, the averages are computed to be 93 plus with high level of consistency on the other hand for AP B-Schools the average score of this feature is very much fluctuating and is around 2 plus but on decreasing trend since 22.The level of inconsistency in the feature is more than 1 % (See Table 3 & 4). e) Industry Interface is another important feature, which are measured interms of association of the B-Schools with industry. The determining factors for effective industry interface are : Weekend short visits to industry Industrial Tours Summer Placements Guest & Extension lectures by industry professionals Consultancy assignments Research work undertaken for industries, MDPS & BDPS conducted by B- schools. The average score for top rated B-Schools is 9 plus but for AP B- Schools it is 3 plus with wide fluctuations.(see Table 3& 4). f) Governance is measured in terms of transparency in administrations and policy Making for top rated B-Schools the average score is 8 plus with variations of 2 %.But for AP B-Schools, the average score is 38 plus with more Inconsistency level (See Table 3 & 4). On the whole (Based on overall score), the profile of AP B-Schools is far behind when compared to that of top rated B-Schools in India. Further the formulated hypothesis are tested and revealed that location has no significant influence on the features of B-Schools of AP In other words the B-Schools located at Hyderabad and Secunderabad do not differ with the schools located in other places of AP on the overall performance (Overall score) and also the individual features. 5. IMPLICATIONS OF THE STUDY

5 11 Quantum growth is significant in the state of Andhra Pradesh in terms of number of B- Schools and intake of students, but not in the quality aspects. Quality of management education is said to be visible only when there is significant intellectual capital, industry interface, infrastructure, and good corporate governance. Further it implies that management schools are treated commercial enterprises. Further MBA course is perceived to be an ordinary P.G. Course. It is revealed that AP B- Schools are very much lagging behind in terms of the features when compared to the top rated B-schools of AP This implies there is lack of professionalism on the part of the directors of the sample of B-schools of AP For the balanced growth of a human being, complete diet is required. Similarly for the balanced growth of business schools, proper balancing among the selected features is very much required. B-schools definitely can take the advantage of locating where they have got established. For example, the B-schools located in or nearer to industrial area will definitely have an edge over the others in terms of the industry interface by way of short visits to industries on weekends and obtaining summer placements, conducting training programs such as MDPS & EDPS and guest lectures by the Industry Managers. But unfortunately it is found that location has no influence in yielding these benefits. Similarly B-Schools located in cities (like Hyderabad and Secunderabad) will, generally have an advantage in attracting good faculty (better intellectual capital), good intake quality (admissions) and good placements(performance),good infrastructure and good governance. Again in this regard it is observed that location has no influence in yielding such benefits over the B-schools located other than Hyderabad and Secunderabad in AP 6. SUGGESTIONS The knowledge of globalization and consequently of management education is going to pose serious threats before the conventional system of management education in all developing countries including India. In the emerging international knowledge market, our management schools have to compete with the foreign players. This situation leaves no options except the quality management education to make it comparable to international standards. Similar is the case with the state of Andhra Pradesh in India. The Andhra Pradesh is one of the biggest states in the area, size of population and also in higher education. The state is well known in the growth of management schools. The following are put forth to reposition the AP B-schools: 6.1 To Maintain & Enhance Intellectual Capital: Recruit the persons who really have the aptitude for teaching hence conduct Aptitude test designed by AIMA or some popular recruitment consultant. Provide Incentives to do research and Ph.D. and post doctorate programs. Encourage the faculty to undertake consultancy assignment and having tie-up with industry to conduct MDPS and EDPS. Provide Attractive pay pack and amenities to the renowned faculty who are the pillars for the B-Schools. To Upgrade Admissions Criteria: In AP the B-schools are AICTE approved University affiliated, hence AICTE has to bring in all the Universities under one mode of standard entrance test on par with quality of CAT. Hence Proper Scrutiny and strict screening is possible with which

6 12 B-schools get good quality intake that to on all India basis. The schedule should be fixed and which is convenient to all the aspirants at India level. 6.2 To Improve Infrastructure : AICTE should inspect the B-schools of AP strictly and the inspection should be periodical. AICTE norms should be increased, as the norms are old and not sufficient at the present days. Regional AICTE boards should lay the role of auditing committee as far as the inspection of norms relating to infrastructure. As far as books and journals, there should be specific mention about the titles of the books, authors and number of copies (based on the strength), and of computers (make capacity and other features).similarly about the journals and magazines. Own building with well planned, good ventilated and spacious class rooms, seminar halls, computer lab, sports room and other are utmost requirement. Industry interface is very much lacking in AP B-schools to improve this recruitment of placement officer with good industry experience. Establishment of Entrepreneurial development cell in every B-school of AP which conducts training classes in entrepreneurial development 6.3 Miscellaneous: Own building with well planned, good ventilated and spacious class rooms, seminar halls, computer lab, sports room and other are utmost requirement. Industry interface is very much lacking in AP B-schools. To improve this recruitment of placement officer with good industry experience. Establishment of Entrepreneurial development cell in every B-school of AP that conducts training classes in entrepreneurial development and guest lecturers from the successful and failure small scale and medium scale entrepreneurs. Involving executives in the evaluation and assessment process of projects, research studies taken up by the students. Conducting of surveys to find out the relevance of existing contents. Holding joint seminars, conferences and workshops Inviting people from industries and showing them innovations being carried out by the research scholars in the field of management. Encouraging the teachers to work for a few months each year in industries. B-schools in AP should to increase revenue at least 25% of the total from consultancy, and research activities. Encouraging the teachers to work for a few months each year in industries. B-schools in AP should to increase revenue at least 25% of the total from consultancy, and research activities. 7. CONCLUSION Today s business is warfare. Business environment, due to liberalization, privatization and globalization, is very dynamic and putting forth-unlimited opportunities and challenges. Business is badly in need of strategic-leader managers and B-schools the AP are not doing their business of producing the required quality leader managers. By recruiting themselves, they can rebuild their position in the industry and society to meet their expectations.

7 13 8. REFERENCES 1) Abad Ahmed,(24) Are Our Business Schools Doing Job?, Indian Management, May pp ) Babu TD,(22), Role of University B-schools, Pratibimba, IMIS,Bhubaneshwar,vol-2,issue 1,jan-june pp ) Babu TD,(23) Product Strategies for B-schools, Probandh, Journal of Management Education and Research, Mohanlal Sukhadia University, Udaipur, June, pp ) Babu TD and Dr. G. Jayabal, (24), Effectiveness Of Management Education In Andhra Pradesh,Indian Management Studies Journal, Punjabi School Of Management Studies, Punjabi University, Patiala, Vol.8,pp ) AIMAS Survey: The Best B-Schools, Indian Management, A Business Standard publication, Vol. 43, issue 9, Pp ) AIMAS Survey: The Best B-Schools,Indian Management, A Business Standard publication, vol.42,issue 12,pp ) AIMAS Survey: The Best B-Schools, Indian Management, A Business Standard publication,vol.42,issue1,pp36-74

8 14 9. ANNEXURE (TABLES) : Table 1. Business Schools in Andhra Pradesh Year Number of Colleges Intake of Students Number Growth Number Growth Source: 1. Universities of Excellence, Andhra Pradesh, Indian Express Group 22 Hyd. page no Commissionerate of Technical Education (Through Personal Interaction) Table2.No of colleges in Intake of Business Schools in Ap as on 19 th Aug 24. University Area No. of B-schools (%) Intake Capacity (%) Osmania, Kakatiya and JNTU University area 136(63.26) 816(61.63) Andhra & Nagarjuna University area 52(24.19) 348(26.28) SV and SK University area 27(12.55) 16(12.9) Total 215(1) 1324(1) Source: Commissionerate of Technical Education (through personal interaction)

9 15 Table3.Analysis of the selected features of the AP B-schools Scores/Features Sample size Intellectual Capital Standard Deviation(unbiased) Admissions & Placements Standard Deviation(unbiased) Infrastructure Standard Deviation(unbiased) Industry Interface Standard Deviation(unbiased) Governance Standard Deviation(unbiased) Overall Score (trend %) Size of Sample (N) 1175(1) (1) (1) (1) (1) (1) (95.74) (115.4) (85.86) (96.2) (14.78) (88.5) (89.36) (17.52) (85.3) (95.22) (15.88) (84.96) Source: Computed Based as the data Extracted from (1) pp (2) pp.36-44,(3) Pp

10 16 Table4.Profile of Top Rated B-Schools from Score/Features Sample Size(N) Features & Scores Intellectual Capital Admissions & Placements Infrastructure Industry Interface Governance Overall Score 945(1) 19(115.43) (1) (1) (1) (1) (1) (123.3) (118.52) (111.29) (112.5) (12) (124.34) (139.2) (129.1) (13.1) (122.16) (13) 95 Source: Computed based on the data extracted from: 1) The Best B-Schools, Indian Management, Published by Business Standard Mumbai Vol.No.42, issue no.1, Jan.23, PP 37. 2) Vol.No.42, issue 12, Dec 23, PP 27. 3) Vol.No.43, issue 9, Sept. 24, PP.31.

11 17 Table5. Analysis of Features Affecting the Effectiveness of Management Education in Andhra Pradesh 24 & Location of B-Schools Factors Intellectual Capital Admissions & Placements Infrastructure Industry Interface Governance Overall Score Location of B-Schools Hyderabad & Secunderabad N 1 = Other places in AP N 2 = Analysis of difference Critical Value (Two tailed Alpha.5) =1.96 t =.45 t=.3478 t=.2897 t=.563 t=.2722 t=.1544 Source: Computed based on the data extracted from: 1) The Best B-Schools, Indian Management, Published by Business Standard Mumbai Vol.No.42, issue no.1, Jan.23, PP 37. 2) Vol.No.42, issue 12, Dec 23, Pp 27.