Paper Title: “Impact of Indian Management Education in Developing Entrepreneurial Aspirations and Attitudes among Management Students”

Author 1: Dr.B.GangaiahAssistant ProfessorDepartment of Business ManagementYogi Vemana UniversityKadapa – 516003Andhra Pradesh, India.e-mail: gangaiahb@yahoo.inPhone: 09490634391

Author 2: Juturu ViswanathResearch ScholarDepartment of Business ManagementYogi Vemana UniversityKadapa – 516003Andhra Pradesh, India.e-mail: viswanath.juturu@gmail.comPhone: 09949312106

Address for Correspondence:

J.ViswanathPlat 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 419 502. Southern 395 063. South Central 945 274. South West 277 245. Northern 525 856. North West 472 377. Eastern 150 308. Central 373 29Grand Total 3556 288Source: 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

Source: www.aicte.ernet.inThe 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 CoursesAICTE approved intake of students ( seats available for

admissions)Program Level of Course 2011-12 2007-08 Five year

changeFive 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

Year Management2005-2006 10522006-2007 11322007-2008 11492008-2009 15232009-2010 1940

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

entrepreneurs164 (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%).

Table 5: Influence of Management Education on motivating Management Students in developing Entrepreneurial Aspirations and Attitudes:

S.No. AspectResponses

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

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 entrepreneurial activities.

12 (20 ) 48 ( 80)

2. Current academic curriculum is matching with industry needs.

09 ( 15) 51 ( 85)

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 maintaining EDP-cells.

06 (10 ) 54 ( 90)

6. There are no any problems with the teaching and learning factors.

17 ( 28.33) 43 ( 71.66)

7. Risk-taking orientation is considered as key element for entrepreneurial transformations.

42 (70 ) 18 ( 30)

8. Students possess higher degree of Social – Learning – Adjustment

15 ( 25) 45 ( 75)

9. Industrial visits are perfectly designed. 19 (31.66 ) 41( 68.33)

10. Most of the academic assignments are intended to develop entrepreneurial aspirations among students.

11 ( 18.33) 49( 81.66)

11. Students are well connected with e-social networking sites and internet usage.

32 ( 53.33) 28( 46.66)

12. Student’s entrepreneurial aspirations are identified and managed.

18 ( 30) 42( 70)

13. Sessions are specially designed for developing and guiding entrepreneurial ideas among students.

08 ( 13.33) 52( 86.66)

14. Present management education system is helping the students in recognizing need and developing entrepreneurial attitudes.

16 ( 26.66) 44(73.33 )

15. Existing management education system assisting us to perform our role as a mentor for the students towards entrepreneurial activities engagement.

23 (38.33 ) 37( 61.66)

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.

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 60 78 42Impact of Management Education on Developing and Sustaining Entrepreneurial Aspirations and Attitudes

45 59 33

Correlation Coefficient 0.999015

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

perform their role as a mentor (Table 6). Correlation coefficient (0.999015) 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 cultural-

situational 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.

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