Krishna Chaitanya V.
Assistant Professor & Research Associate (Finance Area)
Dhruva College of Management
Kachiguda,Hydearabad - 500 027
Cell : 9849422731
Phone : 040 - 24655274 24600032
E-mail :


Management education in India is in the phase of change. The two current developments sweeping India, namely liberalization and globalization, have had a considerable impact on management education.

The management education in India has come a long way. The first Business School in India was Indian Institute of Social Welfare and Business Management, Calcutta, which was established in 1953. The next one being Indian Institute of Management, Calcutta in 1961. Then IIM-A in 1962, Department of Business Administration, Delhi School of Economics in 1966, XLRI in 1966 an so on followed this.

The early 90's saw the boom of founding new management schools, most of them in private sector. In the last three years alone 400 Business Schools came into being. Few Business Schools have also established collaboration with some western Universities.

India management institutions produce over 30,000 full-time MBAs and 10,000 part-time MBAs every year. There is also something called as MBA-Equivalent graduation programs who come out of Distance Education Programs of IGNOU, AIMA, AOU and so on. Even some of the leading business houses are establishing their own business schools. The latest one to enter the field is Kirloskar with a Business School in Karnataka, Reliance, IRMA (Agrl. Ministry).

Today there are over 750 management institutions in the country. This proliferation of Business Schools raises a serious question on the quality of management education. Where will this proliferation leave us? & What will the quality of managers which are produced by these management institutes. This being so, the other side of the story shows the concern for the Business School professors is how to produce good managers with the attributes of increased efficiency and effectiveness, ethics, knowledge, fluency to apply management concepts, theories and tools.

We shall examine the areas of concern, the key issues which the apex institution, AICTE should focus upon in uplifting the management education and making Indian MBA world class.


The management education system of our country is beset with a host of problems and challenges. The sudden proliferation of management institutions has lead to a considerable decline in the quality of education that is being offered.

In order to install the quality in the management education in India, the AICTE, apex institution in the country and universities should focus on the following issues :

* Quality Assurance

* Qualifies and Competent faculty

* Proper Infrastructure

* Accountability of Management Institutes

There are other critical issues which needs to be addressed like: -

* Faculty shortages

* Values and Ethics

* Allowing foreign institutes in India

* Role of professional bodies and authorities


In the years to come the demand and supply conditions concerned with MBA is going to see a mismatch.

The AICTE should act tough on certain key issue like:

a) It should allow only 100 new management schools of quality to come up in next six years.

b) It should permit some good mid-level Business Schools to increase their intake capacity from the existing ones.

c) It should also consider encouraging some of the leading corporates to establish their own management schools.

d) AICTE should make each and every college accountable for all the information that they provide in the prospectus.

Other Key issues to be addressed by AICTE are:

e) Should AICTE go for "A" , "B" and "C" categorization in accreditation of Business Schools or opt for a simpler system of say, "Accredited", "not Accredited" and "not applied for".

f) What should be the role of government ? Professional Association bodies like AIMS, AIU ?

g) What should be the objective of Accreditation "is it quality improvement" or "public awareness".

In case if the AICTE is very keen to maintain quality of education then the action should speak louder than the voice. The message should be loud and clear to those who doesn't prescribe to the above-mentioned conditions. This will send a message that regulatory body means business.


As the business is getting global, day-by-day, there is an increasing need for the colleges to produce global managers. Therefore, it has become necessary that Indian Management education should also become more global.

The message is quite clear, the response to the globalization of business is the globalization of management education.

The following are the directions in which the Business Schools can focus to make management education global:

i. The business schools must admit international students to the program. The Indian management institutes are the only ones with no international participation.

ii. The business schools should induct a few international faculties and provide an opportunity to the students to listen about other country's business culture and systems.

iii. They should provide an active program of students and faculty exchange with advanced countries.

iv. To ensure that at least 25% of the curriculum deals with international subjects like international economics, international marketing, international financial management, etc.,

v. They should collaborate with some well known foreign Business Schools by which Indian students can do part of their education in those institutes.

vi. Lastly the Business Schools also collaborate with some foreign placement consultancies to make sure at least some students can attain jobs abroad.


As we are in the third milliuem, India's management education is under going a major transition.

Internationalization, cross cultures, strategic alliances, partnerships, and mergers are the new trends in management education. But compared to us and Japan where do we stand?

One of the important reasons of Japan's climbing to the top of ladder of industrial world is that they believe in "developing people before developing products".

Howard J. Baumgartner, Chairman, Department of Psychology, University of Kansas, USA, who has been conducting research on management education in India since the early 60's is of the view that the top priorities for management education institutions in India are to improve the quality of faculty; to address and respond to critical social, economic and technological issues facing Indian management.

Relying excessively on the lecture method rather than on class participation, case studies, presentations, role plays, material related articles, industrial experience stymies growth of the students as leaders or executives, as is happening in India, he says.

In India, there is a considerable hope and expectations regarding the value of management education and its potential contributing largely to nation's economic growth.


Prashant R. Nair, Woes Bestides the Management Aspirants, Indian Management (Aug. 2000), pp. 74-77.

2. Vijay Krishna, Installing Quality in Management Education, Indian Management (June 2000), pp. 37-40.

3. Prof. J. Philip, Management Education in Transition, Indian Management (Feb. 2000), pp. 40-48.

4. Sujatha Khandai, Dismal State of Management Education, Indian Management (Jan. 2001), pp. 26-28.

5. P.Ganguly, Are Our Management Institutes Responsible Enough?, Indian Management (Aug. 1998), pp. 76-79.

6. Neeraj, The Missing Link, Indian Management (Aug. 1997), pp. 61-63.

7. Raj S. Dhankar, Long Summer in Management Education, Indian Management (July 1998), pp.51-52.

Krishna Chaitanya V.
Assistant Professor & Research Associate (Finance Area)
Dhruva College of Management
Kachiguda,Hydearabad - 500 027
Cell : 9849422731
Phone : 040 - 24655274 24600032
E-mail :

Source : E-mail February 7, 2004




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