Factors Affecting Students Choice for Degree in Business Administration
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1 Journal of Management and Social Sciences Vol. 8, No., (Spring 202) Factors Affecting Students Choice for Degree in Business Administration S. Nazneen Waseem * Dadabhoy Institute of Higher Education, Karachi. Tayyaba Zarif * Newport Institute of Communication and Economics ABSTRACT Purpose: Primary purpose of this research was to understand the reasons for emergence of business management in higher education in Pakistan. This study was conducted to explore the core reasons and factors behind the students' attitude while selecting management studies as their study option. Methodology/sample: The research work is quantitative one based on field survey. Primary data were collected from students from 0 different private, semi-private and public sector universities of Karachi, studying management science. Analysis of the data was undertaken through statistical software SPSS. Regression, ANOVA and Correlation tests were applied for analysis. Findings: The results have shown most of the students got admission in management sciences programs due to their personal interest but the choice does not vary due to market trend. Other two variables, larger number of institutes offering management science and employment opportunities do have a significant impact on the students' choice to study management sciences Practical Implications: Findings of this research are likely to help the thinktanks, higher education commission, government and other stakeholders pay attention to understand the impact of rising trend of business education in Pakistan and overall dynamics and mechanism of providing business education in Pakistan. Keywords : Management Studies, Students Behavior, Study Option Jel classification : I290 * The material presented by the author does not necessarily portray the viewpoint of the editors and the management of the Institute of Business & Technology (IBT) or Dadabhoy Institute of Higher Education, Karachi. and Newport Institute of Communication and Economics. * S. Nazneen Waseem : nazneen_waseem@yahoo.com * Tayyaba Zarif : dr.tayyabazarif@gmail.com C JMSS is published by the Institute of Business and Technology (IBT). Main Ibrahim Hydri Road, Korangi Creek, Karachi-7590, Pakistan.
2 S. Nazneen Waseem, Tayyaba Zarif. INTRODUCTION Outcome of globalization has witnessed ever increasing demand for trained business managers, executives and professionals that has generated a renewed interest among the youth in business management education that they believe may guarantee them a secure career. Studies supported that students strongly base their career choices on their grades and not on the individual aptitudes and interests. Main and Ost (20) say that societies have marked a shift from conventional inclination for career in medicine and engineering education towards banking, finance, human resource management, supply chain or accounting etc. This trend has flourished in Pakistan as well. Today a degree in MBA from a reputed higher education institution may be taken as guarantor for a secure career. Besides public sector, private sector has also taken cognizance of the situation and a large number of universities/institutes in private sector chartered by the government have been opened offering education in business management. Higher Education Commission (HEC) is regulator of these institutions. In Pakistan there is a total of 35 universities and institutions among which, 35 universities/institutes exist in Karachi (HEC) whereas 26 of them are offering management sciences degrees of (BBA/MBA). This has resulted in a severe competition among the MBA schools and the education industry has become competitive as never before (Saeed and Ehsan, 200).. Research Hypotheses H: Presence of larger number of institutes has a significant impact on the students' attitude towards selection of management studies. H2: The market trend/fad has a significant impact on the students' attitude towards selection of management studies as their study option. H3: There is significant relationship between employment opportunities available in future and the students' attitude towards selection of management studies as their study option. 2. LITERATURE REVIEW During the past decade or so, globalization and the introduction of a new world trade order have led to the increased demand for trained business managers across the world. This impact has spilled into Pakistan as well. As a result, education in business management also got premium importance globally that is supposed to create business management professionals. According to some researches, business schools are being more reactive to their particular contextual needs than just replicating management models (Gomez-Samper, 2009; Starkey and Tiratsoo, 2007; Usdiken, 2004). Pfeffer and Fong (2002) observed that business management schools are relatively distinct among other professional schools such as law, medicine, social work, engineering, education and architecture in terms of the degree of severance from the profession that they serve. Business management education in Pakistan is now getting expensive that is making for the middle/lower middle class parents difficult to have their children business management education in reputed institutions (Riasat et al, 20). Even this trend can be observed globally as well and business education is a big and lucrative business for many business schools and their teachers. Analyzing the trend of the previous three years and taking into account the number of business graduates produced by the leading business schools based out of Karachi, it becomes obvious that BBA programmes are a major source of earning for most of these apparently not-for-profit educational institutes. Individuals having full-time work experience before enrolling in business education degrees are progressing faster in their careers (Thomas, 973), the fastest growing trend is of EMBA (Alam, 202). During the last decade, people used to go for business education because there 4 Journal of Management and Social Sciences
3 Factors Affecting Students Choice for Degree in Business Administration was an assurance of job security but recently the situation is very uncertain and the job market is very weak. In the current economic scenario, however, when industries have shut down, rate of employment reduced, job opportunities for fresh graduates have become a matter of greater concern (Jamillee, 20). Rate of unemployment has continuously increased in Pakistan i.e. it augmented from 5.6 percent in year to 6.0 percent in 200- (Pakistan Economic Survey, ). The education sector in Pakistan suffers from under investment, average facilities and inconsistent standards in comparison with its peer economies due to lack of will or failed policies of government in management education. Accordingly, there are opposing opinions regarding business administration education in promoting employment among the students. For instance, Pfeffer and Fong (2002) shocked the business academia through their findings that the business schools have not been very effective in reducing unemployment, and neither possessing a MBA degree nor the good grades have any correlation with future success in career of the graduates. So, according to them, having a MBA degree does not guarantee a future successful career or job. Mintzberg (2004) in his work also wrote that; it's not due to the love of education but because of having good opportunities or secure jobs which can pay good money that's why people are opting for MBA programs. Despite the above situation, there has been a marked increase in emergence of new private institutes providing higher education in the country. And though private sector is constantly working in this field and especially many business schools have emerged and more areas of business education, more specializations are being explored with the changing needs of time. Recent market trend or advances in management education research have highlighted the need to rethink the purpose of business schools and their role in economic and social development (Gomez-Samper, 2009; Khurana, 2007). It is time to transform business education in Asia (Farhoomand). Pakistan can boast of good business schools, like LUMS and IBA, that are internationally recognized also but there is need for such more schools that can reach international standards. In Pakistan the reason for relatively outdated business education are outdated teaching practices, lack of formal or copied syllabi, research facilities, PhD faculty, training opportunities for existing faculty and academic excellence and no or weak link between academia and industry. 3. RESEARCH METHODOLOGY Primary data for the work was collected from 0 different private and public sector business institutes and universities, of Karachi. A close-ended questionnaire was designed which included the relevant variables like market trend, employment opportunities and availability of large number of management institutes. Data analysis has been carried out with the help of statistical software SPSS. Method of data collection is simple random sampling so copies of questionnaires were developed and filled out by the students of business schools and statistical tools applied were Measures of central tendency, ANOVA, Correlation and Regression. 3. Conceptual Framework Research Model: SMS = α + β (MT) + β 2 (LNMI) + β 3 (HE0) + εi Where: SMS = Selection of Management Studies MT = Market Trend Vol. 8, No., (Spring 202) 42
4 S. Nazneen Waseem, Tayyaba Zarif LNMI = Large number of management institutes HEO = High Employment Opportunities ε = the error termlnmi = Large number of management institutes 4. RESULTS Survey was started by asking students about their previous education, the findings showed 55.2% of the students were those who had already done bachelors and joined graduate degree programs (MBA). 86% of the students were interested in Commerce subjects even before admission in Business Institutes, while science was the second preferred subject with 75 % among students. Again the results support the previous results and mode appears to be 'Accountancy' and shows students' first priority for the career is Accountancy related subjects with the 6% result. 7% of the students got admission in management sciences degree because of their own personal interest. ANOVA The results of ANOVA test tabulated in the Table below showed the value of F=4.254 which means the model is overall significant and clearly acceptable. Table ANOVA b Model Regression Residual Total Sum of Squares df Mean Square F Sig..006a a. Predictors: (Constant), AvgHEO, AvgLNMI, AvgMT b. Dependent Variable: AvgSMS Regression Analysis In the model summary tabulated in the Table 2 below the value of R2 (Coefficient of Determination or Regression coefficient) is or 5.8% which means that 5.8% of dependent variable that is Selection of Management study is explained through independent variables which are High employment opportunities, Market Trend and Existence of large number of Business Institutes. Regarding nature of correlation, the value of "R" is indicates positive correlation or linear relationship between selection of management study and independent variables which are high employment opportunities, market trend and existence of large number of business management institutions. Model R.242 a Table 2 Model Summary R Square.058 Adjusted R Square.045 a. Predictors: (Constant), AvgHEO, AvgLNMI, AvgMT Std. Error of the Estimate.7802 Individual Significance Test (T-test) Regarding individual significance test, first row and the second column of the coefficient table (Table 3) below shows the value of Constant which is and the constant is also significant p= Journal of Management and Social Sciences
5 Factors Affecting Students Choice for Degree in Business Administration Model (Constant) AvgMT AvgLNMI AvgHEO a. Dependent Variable: AvgSMS Hypothesis (H ) B Unstandardized Coefficients Table 3 Coefficienta Std. Error Standardized Coefficients Beta t Sig Equation for selection of management study and larger number of management studies Institutions is SMS = LNMI where LNMI= Larger Number of Management Institutes. According to this equation model, increase in number of management science studies institutes by one unit accounts for 0.82 times decrease in students' behavior towards selection of Management studies by holding other variables held constant. So, on the basis of above test the H is accepted. Hypothesis 2 (H 2 ) Equation for opting for management studies education and market trend (second variable) is SMS = MT where MT= Market Trend. According to the this equation model, change in market trend accounts for only times impact on the students' behavior towards opting for management studies by holding other variables held constant, which is very minimal. So, on the basis of above test the H 2 is rejected. Hypothesis 3 (H 3 ) Equation for opting for management studies and high employment opportunities is SMS = HEO where HEO= High Employment Opportunities. According to this equation model, one unit increase in Employment opportunities accounts for 2.3 times decrease in students' behavior towards selection of management studies by holding other variables held constant. So, the H 3 is accepted. Vol. 8, No., (Spring 202) 44
6 S. Nazneen Waseem, Tayyaba Zarif Correlation Analysis AvgSMS AvgMT AvgLNMI AvgHEO Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Table 4 Correlations AvgSMS * **.008 AvgMT *. Correlation is significant at the 0.05 level (2-tailed). **. Correlation is significant at the 0.0 level (2-tailed). AvgLNMI -.70* AvgHEO -.8** On the basis of correlation matrix, showing a negative correlation between selection of management study and Market trend R= prevailing but it is almost negligible due to a very low value means no correlation. On the other hand; negative and low correlation between selection of management study and Large number of management Institutes R= Similarly; High employment opportunities R= -0.8 means negative and low correlation between students selection of management studies and High employment opportunities available. 5. CONCLUSION Data was collected from students of different business schools, as the results illustrated that just market trend or fad towards business management education does not have significant impact on the students' attitude behind selecting management sciences as their study option. However, other two independent variables; high employment opportunities on the basis of an MBA/BBA degree and availability of larger number of business institutes do have a significant impact on students' attitude on selection of management studies as study option, though both variables indicated negative relationships with the dependent variable. In this sense, the results of the analyses remain bizarre and require attention of higher education policy makers, think tanks and other stake holders. It means, providing job opportunities alone would not be helpful as what is needed is building and enhancing the confidence of our future generation in the economy. As the country is facing lack of prosperity today, the government needs to look into the situation. There shall be measures like maintaining political stability, creation of new employment opportunities, improving per capita income or standard of living, encouraging innovation and entrepreneurship so that our students not only start believing in the system but also get motivated to get business related education, learn entrepreneurship and management skills so that they will be able to create new businesses, investments, jobs in future 45 Journal of Management and Social Sciences
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