IMPACT OF INDIAN MANAGEMENT EDUCATION IN DEVELOPING ENTREPRENEURIAL ASPIRATIONS AND ATTITUDES AMONG MANAGEMENT STUDENTS

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1 IMPACT OF INDIAN MANAGEMENT EDUCATION IN DEVELOPING ENTREPRENEURIAL ASPIRATIONS AND ATTITUDES AMONG MANAGEMENT STUDENTS Dr.B.Gangaiah, Assistant Professor, Department of Business Management, Yogi Vemana University, Kadapa , Andhra Pradesh, India. Juturu Viswanath, Research Scholar, Department of Business Management, Yogi Vemana University, Kadapa , Andhra Pradesh, India. 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 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 Page 1

2 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 Elite club of IIMs added new members in 1973 (Bangalore), 1984 (Lucknow) and (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. Page 2

3 Table 1: Indian Management Colleges Statistics: Sl.No Zones MBA PGDM 1. Western Southern South Central South West Northern North West Eastern Central Grand Total Source: AICTE, 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 Management Source: The growth of Management Colleges in India registered a progressive trend. From 1052 ( ) to 1940 ( ). 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 Five year change Management Post Graduate 249,710 89, , % Fellowship & PhD % Five year change (%) Source: AICTE *World Bank, CIA#NASSCOM adopted from: The Intake of students into MBA and Ph.D courses is increased at the rate of 179% i.e. 89,369 (during the period to ) for MBA Program at Post Graduation level, with the 98% growth rate in Ph.D programs (during the period to ). Page 3

4 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 17 th 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 18 th 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 Page 4

5 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 Page 5

6 180 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 Impact Yes 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 164 (91.11 ) 16 ( 8.88) entrepreneurs 6. Inspirational Teaching concerns on entrepreneurship 159 ( 88.33) 21 (11.66 ) ideologies development 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%). Table 5: Influence of Management Education on motivating Management Students in developing Entrepreneurial Aspirations and Attitudes: Responses S.No. Aspect Faculty (60) Course Pursuing Students (120) Yes No Yes No 1. Industrial Visits 43 (71.66 ) 17 ( 28.33) 98 (81.66 ) 22 (18.33) 2. Curriculum 55 (91.66 ) 05 (8.33 ) 95 (79.16 ) 25 (20.83) 3. Management Games 58 ( 96.66) 02 ( 3.33) 85 ( 70.83) 35 (29.16 ) 4. Assignments 42 ( 70) 16 (26.66 ) 89 ( 74.16) 31 (25.83 ) 5. Learning Aspect 51 ( 85) 09 ( 15) 93 ( 77.5) 27 (22.5 ) 6. EDP-Wing in the College 46 ( 76.66) 14 ( 23.33) 101( 84.16) 19 ( 15.83) 7. Local Industry Connectivity 45 (75 ) 15 ( 25) 91 ( 75.83) 29 (24.16 ) 8. Interactions with Successful Entrepreneurs 52 (86.66 ) 08 ( 13.33) 106(88.33 ) 14 (11.66 ) 9. Project Management 56 ( 93.33) 04 (6.66 ) 94 ( 78.33) 26 (21.66 ) 10. Case-Method of Learning 49 ( 81.66) 11 ( 18.33) 81 ( 67.5) 39 ( 32.5) Source: Field Survey Page 6

7 Table 5 presents the motivating facets of management education on developing entrepreneurial aspirations and attitudes among students. Both faculty and students responded positively towards various key elements of management curriculum, in fact stresses the need for imparting quality concerns in the education system. Table 6: Impact of Management Education in Managing the Entrepreneurial Aspirations and Attitudes among Management Students: S.No. Teaching Fraternity Responses Yes No 1. Majority of the students are interested to take-up 12 (20 ) 48 ( 80) entrepreneurial activities. 2. Current academic curriculum is matching with industry 09 ( 15) 51 ( 85) needs. 3. The student quality is up to the mark. 24 ( 40) 36 ( 60) 4. Active participations in self development programs. 14 ( 23.33) 46 ( 76.66) 5. Institutions are cooperating in establishing and 06 (10 ) 54 ( 90) maintaining EDP-cells. 6. There are no any problems with the teaching and 17 ( 28.33) 43 ( 71.66) learning factors. 7. Risk-taking orientation is considered as key element for 42 (70 ) 18 ( 30) entrepreneurial transformations. 8. Students possess higher degree of Social Learning 15 ( 25) 45 ( 75) Adjustment 9. Industrial visits are perfectly designed. 19 (31.66 ) 41( 68.33) 10. Most of the academic assignments are intended to 11 ( 18.33) 49( 81.66) develop entrepreneurial aspirations among students. 11. Students are well connected with e-social networking 32 ( 53.33) 28( 46.66) sites and internet usage. 12. Student s entrepreneurial aspirations are identified and 18 ( 30) 42( 70) managed. 13. Sessions are specially designed for developing and 08 ( 13.33) 52( 86.66) guiding entrepreneurial ideas among students. 14. Present management education system is helping the 16 ( 26.66) 44(73.33 ) students in recognizing need and developing entrepreneurial attitudes. 15. Existing management education system assisting us to 23 (38.33 ) 37( 61.66) perform our role as a mentor for the students towards entrepreneurial activities engagement. Source: Field Survey Table 6 shows the teaching fraternity responses towards the role of management education in developing entrepreneurial attitudes and aspirations. In reality there are many problems exists with the present management education. They expressed to have special attention and assessment on these issues. Page 7

8 Table 7: Correlation Coefficient between the Respondents Response between the Management Education and Entrepreneurial Aspirations and Attitudes: Respondents Teaching Fraternity Students (120) Males Females No. of Respondents Impact of Management Education on Developing and Sustaining Entrepreneurial Aspirations and Attitudes Correlation Coefficient Source: Field Survey Table 7 shows the close relationship between the management education impact and developing and sustaining entrepreneurial attitudes among management students. All the respondents positively reacted towards the role of management education in developing entrepreneurial attitudes among students. Findings: Majority of the respondents accepted (with higher degree of significance) the influence of factors like family and social groups, school and college environments, self-confidence, situations, frequent industrial visits, interactions with upcoming entrepreneurs, inspirational teaching, culture, entrepreneurial development programs, social media, risk-taking nature on developing entrepreneurial aspirations and attitudes among management students with regard to Indian management education (Table 4). The high influential facets which influences the students towards developing entrepreneurial aspirations and attitudes are industrial visits, well designed curriculum, participation in management games, effective assignments, learning aspect of the faculty and students, Entrepreneurship Development Program wing existing in the college, connectivity with local industries, interactions with successful entrepreneurs, project course work and case method of learning (Table 5). Most of the students are not interested to take up entrepreneurial activities after the completion of the course. Present academic curriculum unmatched with the industry needs, more over the quality of the student is not up to the mark. Majority of the respondents are not actively participating in the self development programs like attending seminars, conferences etc. Even the institutions are not taking initiation towards establishing EDP cell in the colleges. There are problems with the teaching and learning aspects. Risk-taking orientation considered as key step towards transformations of entrepreneurial aspirations into a reality. The students don t possess the social-learning-adjustment degree. Industrial visits are not effectively designed. Entrepreneurship attitude development element is least preferred in the academic assignments. Respondents are aware of usage of internet towards knowledge gathering. Teaching fraternity is unable to identify and manage student entrepreneurial aspirations and attitudes. No special attention on conducting sessions on entrepreneurial ideas development among the students. Existing management education system is not giving much scope for recognizing the need and developing the entrepreneurial interests among the young managers and not in a position to Page 8

9 perform their role as a mentor (Table 6). Correlation coefficient ( ) shows a positive relationship between management education and entrepreneurial aspirations and attitudes developing and sustaining (Table 7). Practical Implications and Conclusions: The present globalized business environment is peculiarly constant with dynamic changes. The role of management education is quiet vital in providing quality human resources with adequate business acumen. Beyond all these identifying, developing and sustaining entrepreneurial zeal among the management students is highly required. There are many challenges and issues in front of the management teaching fraternity and students towards adopting this dynamics. Therefore, with reference to above findings the following suggestions are recommended towards maximizing impact of management education system on entrepreneurial training and effective transformations from a student to entrepreneur: Curriculum should be revised continuously with the changing business needs. The regulatory bodies like University Grants Commission (UGC) and Universities must involve continuously in designing new programs for entrepreneurship development. New specializations are needed to be implemented in the area of entrepreneurship development. Assessing the student ideologies on the entrepreneurial activities through focused assignments. Frequent Organizing of entrepreneurship games for developing entrepreneurial aspirations among management students. Planning and arranging sessions for entrepreneurial idea generation among the students through discussions and addressing rightly the concerned issues. Taking the assistance of successful and young (upcoming) entrepreneurs for organize those sessions. Adopting change management strategies are required to manage the entrepreneurial attitudes of the students. The faculty should act as a change agent in understanding, assessing and directing the entrepreneurial aspirations among the management students. Developing Entrepreneurship Development Program (EDP) cell in the institution; coordinating with the district industrial centers and local enterprises. Taking steps towards creating a committee consisting of members from local entrepreneurs, faculty and course director; aiming counseling, guiding and managing the students towards understanding the significance and making ready to take up entrepreneurship as a career. Designing effective industrial visits on continual basis intended to promote entrepreneurial attitudes among students. Proper usage of social networking sites to develop entrepreneurial ideas. The management teachers have to change themselves as mentors to guide students. Analyzing the culturalsituational influences on the students; taking initiatives to convert highly negative influencers into positive. Project work period should be efficiently used through taking enterprising drafting, dream venture materialization, finalizing a proposed venture documentation etc. Entrepreneurial aspirations and attitudes should be considered in a socio-economic perspective of the nation. References: 1. Breckler, S.J. (1984). Empirical validation of affect, behavior and cognition as distinct components of attitude. Journal of Personality and Social Psychology, 47, Brockhous, R.H. (1982). The Psychology of Entrepreneur, Encyclopedia of Entrepreneurship. New Jersey: Prentice Hall. Page 9

10 3. Crant, J.M. (1996). The proactive personality scale as a predictor of entrepreneurship intention. Journal of Small Business Management, 34(3), Cromie, S., & O Donoghue, J. (1992). Assessing entrepreneurial attitudes. International Small Business Journal, 10(2), Crowther.D and Carter.C Legitimating Irrelevance: Management education in higher education in institutions The International Journal of Educational Management,Vol.16,No:6(2002) 6. Dharani.P.Sinha. Management Education in India, Perspectives and Challenges, ICFAI university press, Hatten, T.S., & Ruhland. S.K. (1995). Student attitude toward entrepreneurship as affected by participation in an SBI program. Journal of Education for Business, 70(4), Khanzode V. V., Recent Trends in Commerce and Management Education, Sterling Publishers Provate Ltd., New Delhi, Kothandapani, V. (1971). Validation of feeling, belief and intention to act as three components of attitude and their contribution to prediction of contraceptive behaviour. Journal of Personality and Social Psychology, 19, Krishna Vijay, Institute quality in Management education, Indian Management, June Cornuel. E The role of business schools in society Journal of Management Development,Vol.24,No:9(2005). 12. Robinson, P.B., Stimpson, D.V., Huefner, J.C., & Hunt, H.K. (1991). An attitude approach to the prediction of entrepreneurship. Entrepreneurship Theory & Practice, Summer, 15(4), Ronstadts, R.C. (1985). The educated entrepreneur: A new era of entrepreneurial education beginning. American Journal of Small Business, 10 (1), Sharma, Yogendra, Fundamental Aspects of Educational Technology, Kanishka Publications, New Delhi, Y.Subbarayudu & G.V.Chandra Mouli (2012), Renovating the Indian management education through effectual teaching and erudition schema, Ithihas - The Indian Journal of Management, 2(4), Dr.B.Gangaiah& Juturu Viswanath Page 10