M O N T H L Y B U S I N N E S S L E T T E R F R O M M I B M A R C H E D I T I O N

EDITOR-IN-CHIEF

Management Education in India in the Global Perspective

The business world is changing very fast. In India in the past few years, the pace of Globalization, Liberaliza-tion and Privatization is remarkable. Management education in today’s context has gained tremendous coverage. The focus of management education is to serve dual purpose ,first is to provide a functional and vocational orientation to management students by preparing them technically for their careers. Second aim is to provide a general management education based on behavioral science, humanities and ethical thinking. After the mushrooming growth of management institutes and consequent competition and adaption of foreign models, now it is a pertinent question to see and check whether or not management education is really pro-ducing the business managers required by the industry. Quality of management education can be improved only by making the institutes accountable for their claim, because quality management education is the only currency which is accepted globally. The responsibilities of B-schools is not only to impart good education and prepare the students for securing immediate placements but also to prepare them for a long term performance on the job. The new millennium calls for more flexible strategic responses to environment by business managers who intend to survive during this time, the business leaders can’t afford to remain content just by being a manager dutifully husbanding his company’s resources , rather he must march forward with a clear and forceful vision of where he should be leading his company in the era of uncertainty. Indian manage-ment education must create leaders rather than managers. Keeping this in mind the system of management education in India needs to reformulate and reorient itself under the umbrella of global perspective. The present system of management education in India barring few institutes has become warped, disoriented and dysfunctional, producing a number of unemployed young managers who are unable to find a suitable place for themselves in the industry. The fault here is not with the students but is inherent in the system, which is creating job seekers only and not job creators. The courses in management should aim at developing entre-preneurial skills so that the students are trained to become major contributors to the country’s industrial devel-opment.

The focus also needs to be laid on discriminating the chasm between the theory and practice. The manage-ment education apart from teaching the fundamental and the core functional areas needs to talk about, lead-ership, self-organization, conflict resolution, ethical commitment, creative thinking and operational flexibilities, so that students in true sense of the ward become epitome of wholesome learning.

The option to shift to global universities and institutes poses a two-fold challenge to our education system. The first is to attract good students to our universities and institutes and the second being the challenge to retain the capable/talented teaching faculty. In future management education is going to witness mainly soft skill oriented course curriculum, high level faculty with relevant industry experience, whose job in the class-room would be to facilitate discussions, pedagogy will be dynamic and flexible, students will be sitting with their individual net connected laptops and over all there would be intensive industry exposure and the class will be highly technology savvy. This time has come to carry out management education system into new heights, or else it will be now or never.

Syed Wajid Ali, Asst. Professor

Centre for Management Studies, Jamia Millia Islamia

2

CHANGING DIPLOMACY

Economic Ties Overshadowing Political Rivalries

The foreign policy of a country should always be aimed at its solid existence and continuance on the global map with boastful territorial integrity and omnipresence in all walks of international affairs-social, economic, cultural and political. As per imperatives of global realities, the following policies must be followed: 1) India must convince its nuclear and non nuclear neighbours about its intensions and purposes of nuclear technology. At the same time steps should be taken to make them know and believe that use of nuclear technology is purely for peaceful purposes. 2) India must participate in all regional and global platform so that its presence can be felt everywhere, in eve-ry walk of social, developmental and cultural life. 3) India must strengthen its economic ties with strong and weak neighbours as per its strategic interest and personal equation. In this era of globalization, economic ties hold more relevance than political ties. 4) Over and above, proper safeguards should invariably be kept ready for any untoward development in con-duct of above policies in the form of preventive diplomacy. The evolution of global village is the hallmark of 10000 years of history of civilization. No doubt war begins in the mind of human beings who otherwise talk about peace every day. We know the act of today is bound to be analyzed tomorrow. Let the peace prevail and rationality dominate over myopic vision of war and aggres-sion. For me, sovereignty means the right to live without interference in the personal equation of nation with other nation. For example, if USA wants to impose its relation and equation with Iran on India’s relation and equation with Iran, then it will be a blatant violation on the principles of sovereignty and sound diplomacy. During the cold war period, the foreign policy was guided by three factors: 1) Political ideologies of communism and capitalism 2) Balance of power 3) showing loyalty towards super powers But today, the foreign policy of country is directed by three harsh realities such as: 1) The imperatives of global market economy 2) The menace of terrorism 3) The wrath of fundamentalism Now the situation and the requirements are different. Therefore the parameters are ought to be different. The

day the political protection is over, economic imperatives will dominate. Today market is more important than

battlefields. The political centres are becoming less important than economic points. Globalization has

changed the complexion of foreign policies around the world. Today, diplomacy seems to be subservient to

economic exigencies. China is politically one of the greatest rivals of USA. But their economic ties and

dependence have compelled them to undermine their political priorities and ideologies. Those who under-

stand the change are changing. Those who do not will have to change because change is the most perma-

nent fact of life. The success of foreign policies depends upon how countries undermine the political consider-

ation and shift the relation towards market integration.

By Avinash Anshul

3

Mr. Steven and Mr. Ryan meet at a job interview for the designation of a research analyst. Both are smart, equally com-

petent, and have the required knowledge and skills for the job, but one difference makes the only difference for Mr. Ste-

ven to get hired. This crucial difference was the “internship experience” which Mr. Steven was very glad to have. Hence

Mr. Steven comes out of the interview room, satisfied after he was told “You’re hired”.

Someone once asked “Is internship the gateway to a full-time job?” We students understand and feel the gravity of the

situation when one is offered an internship whilst one is studying in a college or university. An internship helps a student

to gain a practical and on the job experience. We all have the theoretical knowledge that we’ve gained since the very

first day of our primary school but never had the opportunity to apply it in our preference field. Well the best time for an

internship would be when one is midway through completing graduation or post graduation. I would prefer the latter be-

cause it is the most crucial part of one’s life; with career, pressure, success, lifestyle, tensions doing the rounds, stu-

dents today are moulded to become leaders of tomorrow.

By working with any firm during the college period, students get to understand the practical and real world problems.

This exposure to real world scenarios helps them in the transition from college to work life. At the same time the stu-

dents understand the working and culture of the company which in turn evaluates the student for a potential full time job

offer. This way, students get a fantastic opportunity to convince employers to hire them, by displaying their skills,

knowledge and potential of becoming successful in the near future.

Internship also helps students to evaluate and identify fields of interest. Internship offers the students perspective and

clarity of thought by helping them identify their fields of interest. By picking projects that lie in the area of interest, stu-

dents can evaluate if the current interest area excites them and this way students pursue their true area of interest.

I’m a student of MIB second semester and like me, many others are also looking forward to the summer internship pro-

gramme, to gain an experience of a lifetime, to understand the importance of the job opportunity and to be ready to

begin a new chapter in our life. All of us start off with dreams and goals. Advice and prior knowledge can only take you

so far. The distance from this point onwards can only be bridged through a very important first-hand experience called

an internship.

By Tulika Saikia

INTERNSHIP: THE DIFFRENCE

TRADE NEWS India’s imports declined for the first time in nine months 11% to $25.1bn in January 2011 compared to

$28.3bn last January.

There is also some goods news on exports front. Shipment out of India rose at their fastest pace in nearly

33months and this is expected to grow significantly with the opening of Vallar Padam Container Terminal for

trans shipment container costing $33.23bn. Exports grew 36.4% in January to $22.5bn on the back of strong

performance by engineering goods, gems& jewelry, leather & other products.

Although this helped lower the trade deficit to $2.6bn, lowest in 3 yrs., but this is not a good news for local

industry as imports consists of raw materials to manufacture finished goods. Estimation by commerce ministry

to cross $200bn by this FYP. This guarantees a smooth sailing for the traders. The strong export perfor-

mance in December comes against the backdrop of fragile economic recovery in some of the developed

markets. (cont. last column)

By Shadab Sami

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BILL OF LADING QUOTE OF THE MONTH

TRADE NEWS

Toyota group initially started with the name Toyoda industries with invention of power loom in weaving for textile industry. In 1937, Toyota Motors was formed which has eventually become largest car company in terms of sales.

Nokia was founded by Fredrik Idestam and Leo Mechelin in 1865 as Nokia Aktiebolag. They started as paper mill producer and later as electricity provider. Nokia entered electronic division in 1960’s, with initial mobiles for army. In year 1987, Nokia manufactured first hand held mobile phone.

NEED TO KNOW

Arp.-Dec. January

127.2 (2009-10) 16.5

164.7(2010-11) 22.5

Growth: 29.5% 28.3

Arp.-Dec. January

207.3(2009-10) 28.3

246.7(2010-11) 25.1

Growth: 19% -11%

TRADE BALANCE : $-2.6 bn

(cont. from page 3)

EXPORTS (in bn $)

IMPORTS (in bn $)

A Bill of Lading ( B/L ) is a document issued by a carrier to a shipper, acknowledging that speci-fied goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. It is an evidence that a valid contract of carriage exists, and it may incor-porate the full terms of the contract between the con-signor and the carrier by reference. It is a receipt signed by the carrier confirming whether goods matching the contract description have been received in good condi-tion and it is also a document being freely transferable but not a negotiable instrument in the legal sense. The B/L contains the information like name of the shipping company, Shipper's name, Order and notify party, de-scription of goods, Gross/Net weight and Freight rate/measurements and weighment of goods/total freight. Once the goods arrives at the destination they will be released to the bearer or the endorsee of the original bill of lading. The carrier's duty is to deliver goods to the first person who presents any one of the original B/L. In gen-eral, the importer's name is not shown as consignee. The bill of lading has also provision for incorporating notify party. This is the person whom the shipping com-pany will notify on arrival of the goods at destination. The B/L also contains other details such as the name of the carrying vessel, the marks and numbers on the packages in which the goods are packed, a brief de-scription of the goods, the number of packages, their weight and measurement, whether freight costs have been paid or whether payment of freight is due on arrival at the destination. The document is dated and signed by the carrier .The date of the BL is deemed to be the date of shipment. If the date on which the goods are loaded on board is different from the date of the bill of lading then the actual date of loading on board will be evi-denced by a notation on the B/L. In certain cases a carrier may issue a separate on board certificate to the shipper.

“Monetary policy becomes the first

line of defense, so if inflation persists

for a long time people think inflation

is going to be high, and that becomes

a self-fulfilling prophecy. To break

that inflationary-expectations psyche,

RBI has to act, which is why we have

been acting over the last year.”

RBI Governor: D Subbarao on present Indian inflation conditions