This paper deals with India’s need for management professionals in various socio- economic pockets in rural region. AICTE is trying to bring in quality benchmarking in all the B- Schools in India setting up minimum norms and standards for B- schools.
The minimum norms and standards are unachievable for many of the B-Schools functioning in rural India. Can we question the running of these schools that are producing management graduates, primarily for various small and medium scale organizations in rural India? Should we close them down pointing towards minimum infrastructure norms and standards set by AICTE without considering Socio-economic and academic constraints faced by them?
The main issues covered in the paper are related to the need for managerial inputs in rural India and role of small B-Schools catering those needs. While doing so, various issues faced by them.
Keywords: Rural region, Economic pockets, Role of small B-Schools, Quality benchmarking, Socio-economic
and academic constraints
1. Introduction
In the process of globalization, management education in India is playing key role in coping up with the rapid changes taking place in all types of business activities. The focus is on maintaining good quality of education in thousand plus B schools in India. These institutes are operating in almost all corners of the country. They are varied in nature, size and structure. The variation is because of variety of socio-economic factors influencing working of these schools. These institutes are broadly classified into three categories based on locations and socio-economic circumstances. ‘A’ category includes institutes in big metro cities. ‘B’ category covers institutes in next larger cities and ‘C’ category are mostly urban, semi urban and rural institutes.
Presently quality parameters for all the institutes in India are uniformly set. Quality expectations from Industry, controlling bodies are similar or same for all the institutes without considering variations in socio-economic status of the region in which these institutes are functioning.
Regional Institutes are trying to conform in this race with quality norms set by quality controlling authorities. Quality is perceived differently at different places. The basic expectation from quality is, it must satisfy the needs of the stakeholders. These needs can be different at different socio-economic zones of the country. Setting same or similar parameters for all the B-schools in India may do injustice to the institutes functioning in rural area. It is relevant to study quality parameters to be set for regional institutes taking into consideration the socio-economic and academic constraints.
Regional Institutes have to face various challenges to survive in this era. Every Institute has same stakeholders but their demands differ as per their Socio-economic background. And the Socio- economic status of the rural area is quite low as compared to the metros or big cities. So this is the basic difference between these big cities or Metros and rural Institutes. In the further part we discuss the challenges & pressures on the regional Institutes.
The regional institutes are to cater regional needs. The significant task is to identify management education needs and take necessary steps to fulfill the needs ensuring appropriate quality of management education. B-Schools in rural India need to focus their efforts on these tasks.
2. Objectives of Research
2.1 To identify management education needs in various socio-economic pockets in rural region.
2.2 To understand nature of the problems of B-schools in rural India
2.3 To study the role of rural B-schools in addressing management education needs in rural region.
3. Methodology
Management Institutes in Shivaji University region are the main source of information for research. Directors, teachers and students are the source of primary data, whereas office record is the source of information regarding socioeconomic background and placement information. Small and medium scale entrepreneurs are also taken into consideration to identify their specific needs for managerial inputs. Other sources are people working in NGOs, local govt., agriculture and agro-based industries and service sector
4. Hypothesis
1. The present norms and standards set by AICTE are not appropriate for rural B-schools. Control exercises are redesigned considering socio-economic and academic constraints.
2. MOUs with other privileged B-schools will help in reducing problems of B-schools in rural India as well as create better awareness of the opportunities and potential in rural India among privileged schools.
5. Review of Literature:
“Education is the great Instrument of social emancipation by which a democracy establishes, maintains and protects the spirit of equality among its members” these are the views of Radhakrishan commission (1948-49). All great people & educationists like Mahatma Gandhi, Karmveer Bhaurao Patil, Mahatma Phule, Shahu Chhatrapati, Kolhapur, G.K. Gokhale, Vinoba Bhave etc. have said that education is the medicine to all the ills of Indian rural society.
Bhaurao’s educational experiments were meant to solve the difficulties confronting the rural society. He said, a man is gifted with Native Intelligence & with or without moderate formal education can also give a coherent, if not, a systematic philosophy of his own life.
Advocate Bartakke found that after Industrial revolution young people started leaving the villages for cities in spite of the danger of unemployment. He noted that slogan ‘Back to villages’ should be changed to ‘stay in villages’. He suggested that, for village industries & villages to be self –dependent, he advised the village traders to form co-operative societies and learn modern techniques of trading. He expected that education should teach them better life, better farming, better seeds, better marketing and no thirst for city life. But the education was to the contrary at that time.
In today’s global era too these philosophy hold true. Regional Institute has to play a pivotal role to develop the region by providing appropriate knowledge to the students so that they can stay in villages and apply all their managerial skills for the and others better life, better trading & better marketing.
Mahatma Gandhi was also of the same opinion, that education should be self-supporting. Education means an all - round drawing out of the best in human- body, mind & spirit. The highest development of the mind and the soul is possible under a system of education. ‘Making revolutionary changes in education system and giving practical knowledge/ life skills and through educating them’ this was the principle of Mahatma Gandhi. He was of the opinion that, college education should be related to the National necessities. Education for life: Without the use of our hands & feet, our brains would be atrophied and even if it worked it would be the home of Satan. Tolstoy was of the same opinion. The youth/student have to be the true representatives of our culture & civilization, they are the true genius of our nation and this education should be based on non- violence & without exploitation of the student. True learning can be imparted only through doing. Gandhiji’s idea was not only to teach a profession or occupation but to develop the full man through teaching that occupation.
In this way, we see it is very essential and can be possible to develop the rural areas through the students by teaching them the culture, industrial scenario of that region as well the global opportunities and threats so that they can apply their managerial skills to make the rural/ regional industry competent.
6. Research
6. 1 Management education needs in rural India.
In India, so far, management education is confined to corporate sector only. The corporate and business sector is largely benefited by professional management education imparted by various B-schools in India.
It has been observed that the rural economy has not been on the agenda of business education endeavor in India.
It is also pointed out by the committee appointed by AICTE in 2003 that there is a need to increase the focus of management education on the neglected sectors such as co-operatives, forestry, urban management, infrastructure, rural development, education and legal system.
Now there is a need to identify specific needs of these neglected sectors that are quite different from management education needs of corporate sector.
Sector Basic Management education (ME) needs Specific needs
1. Agriculture ME level 1 Government schemes for agriculture development.
Agro- marketing; domestic and foreign.
Micro financing, farm accounting etc.
2. Agro- based Industries (including co-operatives) ME level 1
ME level 2 Value addition management, agro- based industries profile, industry specific marketing and other functional requirements, related legal aspects.
3. NGOs ME level 1 Sociology, political science, micro and macro social environment, national and international schemes for poverty alleviation, management of non- profit organization.
4.Local Governments ME Level 1 Civics, sociology, social sensitivity, public administration, public financing, social values and ethics.
5. Education ME Level 1 Psychology, school administration, educational policies, educational finances, educational values.
6. Services (hospitals, regional banking, transportation etc.) ME Level 1 Services marketing, financing, professional service management, service organization and deign, service blue printing.
Most of the rural B- schools are engaged in following curriculum recommended by AICTE and universities, which is by and large based on the needs of corporate sectors. Seldom the local and regional needs are taken into consideration while designing syllabi.
Most of the students passing out from rural B-schools opt for the jobs in the corporate world leaving regional needs unfulfilled. If we look at the executive work force mix engaged in all above neglected sectors we find very few professionally trained managers who have obtained management degree. As students from regional B-schools prefer working in big cities and corporate, subsequent to this there is non- availability of management talent in rural area. This results into lack of competitiveness and lower profits in these sectors. Consequently, these sectors are unable to offer better or attractive pay package to attract and retain deserving management educated people. Thus vicious circle continues.
Rural B- schools have required ability to begin the process of professionalism in the neglected sectors. They can be used as vehicle for social and economic transformation in the rural region.
6.2. Problems and Perspective of Rural B-schools
6.2.1 Table No. 1 B-schools in India and deployment of their students in industry
Grades of Cities No.of Institutes
A 237
B 82
C 373
A: Cities : Mumbai, Kolkota, Chennai, Delhi, Ahmedabad, Kanpur, Banglore, Pune, Hyderabad,
B: Cities : Bhopal, Madurai, Coimbatore, Nagpur, Indore, Patna, Jaipur, Surat, Kochi, Vadodara, Lucknow, Vishakhapatnam, Varanasi, Ludhinia, etc.
C Cities : Remaining cities
Institutes Industries
A - Metro Institutes X - Large scale, MNCs & leading industries
B - Big-city Institutes Y - Medium scale industries
C - Regional institutes Z - Regional Industries
If we analyze this we normally find that, students in ‘A’ Institutes would prefer to go in ‘X’ type of industries, they find it suitable for themselves and the institutes are making efforts to cater the needs of these industries only. Very few students come in the ‘Y’ or ‘Z’ industries. Even if by chance they come down, all the time they are making efforts to go up.
Students in ‘B’ type of institutes have more scope as compared to ‘A’. Students as well as the institutes are making efforts to cater the needs of ‘X’ type of industries. 50% of the students of ‘B’ type institutes are able to cater the needs of ‘X’ type industry and the remaining are absorbed in ‘Y’ type industry. These students have scope in ‘Z’ type of industry also but they are not interested to go down and institutes also don’t like it.
Students in ‘C’ type of institutes have maximum scope in all X, Y, and Z kinds of industries. And the regional institutes are trying to develop appropriate quality students who can cater the needs of all kinds of industries. Here 10% of the students are absorbed in ‘X’ type of industry, 30% of them cater the needs of ‘Y’ type of industry and the remaining 60% are by and large deployed in the regional industries.
It has been observed that a few students from ‘C’ institutes can fit in ‘X’ and ‘Y’ type of industries, but the students from ‘A’ institute do not fit in ‘Z’ type industry. They are neither interested nor find themselves suitable for the environment of regional industries.
From the above discussion it becomes clear that ‘C’ type of institutes should try to concentrate on the regional development which is required to bring in balanced development in rural region.
6.2.2 Quality of students and their socio-economic background:
State Govt. has adopted 70+15+15 pattern for admission 70% from local university, 15% from other universities in the state and 15% students from out of the state.
Since out of state students and other university students are interested in ‘A’ or ‘B’ type Institutes, the profile of students in ‘C’ type, rural institutes remains by and large rural.
Due to less exposure, conventional teaching methodology till undergraduate level, the quality of students is much different from the students in metros.
These institutes need to make intensive efforts to bring these students to the minimum level which makes them eligible for management education i.e. language, minimum communication skills and orientation for active learning expected in management education.
If we look at their performance in admission entrance test, we find following composition:
15% of the candidates are within the range of 55-75 out of 200 marks
65% of the candidates are within the range of 75-100 ,
15% of the candidates are within the range of 100-125,
05% of the candidates are above 125
Students from Semi urban and Rural India are by and large introvert, shy and passive. This may be attributed to the social characteristics of the region. Though many of them are from non- agrarian family background. They have less exposure to the industrial environment where the above qualities are undesirable. The transition of agrarian society to industrial society is still in the process.
B-schools in rural area have to fight with the preconceived ideas of the students emerged out of their inferiority complex and no close interface with corporate environment.
Few guest lectures, industrial visits and library work, debates take them to a limited extent to come out of inferiority complex..
The insistence of AICTE on one or two common admission tests will deprive majority of rural students from availing management education.
6.2.3 Teaching Methodology:
Till graduation all over India the lecture method is used to a large extent, for almost 15 years student are associated with this methodology. This brings in ‘class room syndrome’ among the students where students knowingly or unknowingly are made passive in learning.
Any change in methodology i.e. Case studies, Business Games, Debates, Seminars make them uncomfortable in the initial stages. At the same time the faculty is also drawn from the same background. They are accustomed to lecture method.
Efforts made to introduce new pedagogy other than lecturing may help these students to be an active learner.
6.2.4. Institute Finances:
The major constraint for the B-schools in rural region is to raise finances for running these schools effectively.
As long as these schools were controlled by Universities in the region, the norms were set by the universities in tune with economic conditions of the region and Institutes’ fund raising capacity.
The paying capacity of the students in the rural area is comparatively lower than that of the students from metros and large cities.
Institutes finances are mainly dependent on the fees from the students in the region. Other sources like research and consultancy have no scope or very little scope to generate funds to support these B-schools.
Since AICTE has intervened in the setting up of minimum norms for all the B-schools in India, rural B-schools are in a fix and their survival is at the stake. They neither get any aid from the Govt. nor can raise required funds through fees to meet the norms set by AICTE.
Appointing faculty as per AICTE norms i.e. 1: 15 teacher student ratio is much more higher than the normal teacher student ratio in grantable undergraduate programmes conducted in the rural region.
Same is the case with infrastructure. The building space required to run MBA programme is per student 100 sq. mtr. This is far beyond the reach of financial capacity of rural B-schools.
The basic assumption to set up certain infrastructure norms and teaching norms is, even rural institutes also can raise sufficient funds to comply these conditions. The assumption does not take into consideration the low economic conditions in rural India.
6.2.5. Controlling Bodies : Role and Pressures
Following are the factors influencing functioning of rural B-schools.
Controlling Bodies Assumptions Facts/Implications on
Rural B-schools
AICTE Demand for management education is more than the supply hence elimination based admission process is required In rural area, demand is
Less than supply, in recent years many seats remained vacant after admission process
Sources of income are many. B-schools can raise funds from fees, research consultancy , MDPs etc. Students come from economically underprivileged, social class, paying capacity is low. No scope for remunerative, research and consultancy
University B-schools are making profits Affiliation and other fees are higher compared to other PG/ UG programme.
State Govt. (DTE) Demand for management education is more than the supply hence elimination based admission process is required Too many admission rules most of them are inapplicable as number of seats are vacant.
Fees controlling authority (SSS) B- schools will charge heavy fees if not controlled Considering economic conditions of the students exorbitant fees cannot be charged.
Parent Society B-schools are surplus making units Reluctance to give financial assistance, on the contrary reverse expectation.
Student community Having a degree in management will bring top corporate placement Struggle hard in initial period and lands up sometimes at lower level management cadre in MNCs.
6.3. New role of Rural B-schools
Minimum AICTE norms and conditions are applicable to all the management institutes in India. The institutes falling short in any respect are seriously being warned to fulfill the conditions or close down. This is practically impossible for various regional B-schools in India. Even many B-schools in ‘B’ cities do not adhere to the minimum norms and conditions. Hence, it is essential to set different quality norms considering different socio-economic pockets and different roles played by different types of institutes.
The present role of B-school in rural India is like follower who is dragged behind the system framed to address the needs of the corporate sector. There is a vast difference in socio-economic status of rural India and urban India. Instead of forcing rural B-schools to follow the present quality benching set for primer B-schools and B- schools in urban area, who are mainly catering needs of corporate world, they should be considered differently. They should be given an opportunity to use their strength appropriately for solving the problems of neglected sector in rural region by imparting relevant and customized management education.
In addition to the present academic programmes conducted by these schools, the system should by evolve to integrate them with the regional needs of management education. Most of the neglected sectors do not follow basics of professional management. They have survived per-liberalization period only because protective policies of the government. They were wards of the state. In post-liberalization era due to competition and complexities in running in odds most of them are on the past of death. As seen earlier the managerial expertise can only help these businesses regenerate or survive. This expertise can be made available by strengthening regional B-schools.
7. Recommendations
Following measures can be taken to strengthen the rural B-Schools
1. AICTE should pay attention to the problems of rural B-schools by appointing advisory committee consisting of experts form rural region. This committee will take into consideration the management education needs in the rural region and set norms for rural B-schools. It can also consider delegation of controlling authorities to the universities in the region. Universities can understand the regional educational needs better.
2. There is a need for integration of government initiative for rural development and role of rural B- schools. Some schemes can be routed through these schools.
3. MOUs between premier B-schools and rural B-schools can be made which usher in following benefits:
A. Enhancement of quality of rural B-schools through designing -
1. MDPs for neglected sectors
2. Conducting research for rural development.
3. Faculty development and curriculum development.
B. Premier schools will understand the untapped opportunities and potential of rural India. Thus MOU will bring in ultimately the balanced regional development by collective efforts in improving quality management practice in neglected sector.
4. MNCs and large corporation can look into the opportunities and potential in rural region and extent their outreach activities taking rural B-schools with them. this will strengthen B-schools financially at the same time they can expand their market
5. As per the report published by NCAER, out of 6,38,667 villages only 1,00,000 villages are commercially tapped by HLL, one of the leading MNCs to tap Indian rural potential. This shows that a there is a considerable drench which can be filled by efforts of MNCs in co-ordination with regional B-schools.
6. As rightly mentioned by C.K.Prahalad in his best seller, ‘The fortune at the bottom of the pyramid’, that it is not possible for MNCs to frame strategy for serving market that lies below the pyramid by sitting at the headquarters. In order to understand the characteristics of these markets they need to have strategic alliance with NGOs, universities and educational institutions. This thought expressed in the book supports our stand that B-schools can play a pivotal role in representing the fortune that lies below the pyramid.
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