PRIVATIZATION OF HIGHER EDUCATION:

A BOON OR A BANE?

By-Harish Morwani (CH - Karnavati Education)

& Dr. Namrata Bajaj (Asst. Prof. - NIT)

Privatization: Need of Today

         

          Presently, in World economy, tremendous changes are taking place. Earlier, there was monopoly in this game of economy. The Manufacturer shot and the Consumer was at the receiving end. Now the concepts of Liberalization, Privatization and Globalization have taken important places in the World economy. Due to mutual agreements between countries, the World has become a single market that is running to survive.

           

            Again due to idea of privatization, developing countries like India and China are coming up in the forefront of economic activities and the new generation of Entrepreneurs has emerged. Earlier, in countries like India, common man could not even thought of having a cell phone, his own home, car etc in his younger age. All this is possible now, only due to privatization which has created competitive customer centric market.

           

            Education contributes its vital input in the growth and prosperity of a nation. In fact it is the backbone of all national endeavors. It has the power to transform human beings into human resources. Higher education has an omnipotent role of preparing leaders in different walks of like-societal, politics, culture, science, technology etc. According to a survey of 120 countries, the World Bank has reported that human capital accounts for 64% of total wealth whereas physical and natural resources account for only 16% and 20% of total wealth respectively. Hence, economic prosperity and human capital have direct relationship with each other.

Pandit Jawahar Lal Nehru has rightly said:

“A University stands for

-          tolerance

-          freedom for the adventure of ideas

-          search of truth

It stands for March of the human race towards even higher objectives. If the Universities discharge their duties adequately then it is well within the nation and people.”

The Task Force constituted by the World Bank observed that the higher education helps increase in wages and productivity thereby enriching individual and society as a whole.

Higher Education: A Glance at Global Level

            Privatized higher education in many countries will be the growth area for the first part of 21^st Century. Private Universities are expanding at a more rapid rate than Public Institutions and they are serving a larger segment of the total population. In countries like South Korea, Japan, Taiwan and Philippines, Private  Universities educate a large majority of those going on to post secondary education i.e. 80% overall. In Latin America also more than 50% of the total enrollments are in Private Universities. Private Universities are developing rapidly in Central and Eastern Europe and in former Soviet Union with a rapid growth at all levels of the academic system. Some of the World’s best Universities are private. Although 80% of the American students study in Public Universities and Colleges, most of the prestigious Universities (Harvard, Yole, Stanford, and Chicago) are private.

INDIA: Private Education at a Glance

            India is in catch-22 situation as far as privatization of education is concerned. In Public Funded Universities, AICTE has slashed seats as most of these Institutes are run by the help of Visiting Faculties. And the Student-Teacher ratio is not in accord with the guidelines. In such scenario, shouldn’t there be an independent body to monitor the real contributors, irrespective of their public or private affiliations? There are many Private Universities that have achieved success in all spheres like- maintaining quality education, good infrastructure, placement of students etc. in less than 10 years what most of the Public funded Universities have not achieved in even 50 years. There are many Private Universities like ICFAI, AMITY that are popularizing Brand India by their contribution to Business and Technical case studies to reputed bodies like ECCH (European Case Clearing House), which are even referred by the students of leading B-Schools like Harvard etc. Such Universities are publishing Text books, Workbooks, Derivatives, Journals, and Magazines on various subjects customized for Indian Students, Scholars and Experts with Indian and International illustrations. This has helped the students to increase the basic understanding of various subjects and also helping in enhancing their level of knowledge. Again Scholarship for merit holders is improving the competitive spirit among the students. So taking quality higher education through out the country to bridge the gap in grabbing job opportunity and worthiness of candidates hailing from a small town to that of a metro is only possible when more and more Private Institutes are allowed to operate by opening Colleges even at District level.

            But Private higher education is seldom totally private. The private sector is intervened by the State Govt. in many ways. Accreditation and evaluation bodies are established by State Govt. Authorities to control the expanding private sector. In India, which has one of the largest private higher education sectors in the World, Government funding is available for students for the large proportion of their fees. This dependence is a defining characteristic of private higher education worldwide and means that Private institutions must be sensitive towards student’s interest, the employment market of graduates and pattern of pricing.

            The rapidly expanding world of private education is quite diverse. The diversity is among Private Institutions across India and World wide Private Institutions. A vast improvement can be seen but only at the bottom level of the academic hierarchy. So it is important to understand the complexities of the reality of private higher education.

            The efforts to privatize higher education in India by encouraging private agencies to set up institutions of higher learning have enjoyed limited success in general education. In spite of such a big network and large number of statutory bodies functioning in this field, the quality of higher education in India is still poor and is facing enormous challenges in today’s global world. The challenges are:

-          Quantitative Growth

-          Quality Assurance

-          Research Work

-          Accountability

-          Curriculum

-          Examination Pattern

-          Lack of Governance

Globalization has created ample avenues for the integration of our views and knowledge in different spheres and providing greater opportunities for services, goods and exchange of ideas. So this may be achieved with strategic planning like

-          Raising the Standard of higher education

-          Liberalizing the rules for formation of Private Universities

-          Encouraging Open Learning

CONCLUSION

            It is high time now to wear the thinking cap and to think rationally about the Institute as a whole irrespective of its affiliation whether it is Public or Private. So it should be case to case basis instead of “One Size Fits All” attitude. Higher education is the pavement towards national development. The management of institutions (private or public) providing higher education should function with the true spirit of disseminating knowledge, transforming society and bringing peace and harmony to the nation. Gandhiji, the father of the nation was right when he said that “University education should turn out true servants of the people willing to live and die for their country.” Dr. A.P.J. Abdul Kalam, the President of India also agrees with his vision who said that our education system should highlight the importance of entrepreneurship and develop such skills right from colleges to provide them with opportunities for creativity & freedom and the ability to generate wealth through setting ventures producing marketable products. Hence higher education should be quality based, marching towards the pursuit of truth through knowledge and enlightenment to open up new vistas of development and humanism. Such an education will ignite the minds of young citizens which in turn will contribute towards building of a healthy nation.

RETAIL CONCEPT

 

The distribution of consumer products begins with the producer and ends at the ultimate consumer. Between the producer and the consumer there is a middleman---the retailer, who links the producers and the ultimate consumers. Retailing is defined as a conclusive set of activities or steps used to sell a product or a service to consumers for their personal or family use. It is responsible for matching individual demands of the consumer with supplies of all the manufacturers. The word ‘retail’ is derived from the French work retaillier, meaning ‘to cut a piece off’ or ‘to break bulk’.

A retailer is a person, agent, agency, company, or organization which is instrumental in reaching the goods, merchandise, or services to the ultimate consumer. Retailers perform specific activities such as anticipating customer’s wants, developing assortments of products, acquiring market information, and financing. A common assumption is that retailing involves only the sale of products in stores. However, it also includes the sale of services like those offered at a restaurant, parlour, or by car rental agencies. The selling need not necessarily take place through a store. Retailing encompasses selling through the mail, the Internet, door to- door visits---any channel that could be used to approach the consumer. When manufacturers like Dell computers sell directly to the consumer, they also perform the retailing function.

Retailing has become such an intrinsic part of our everyday lives that it is often taken for granted. The nations that have enjoyed the greatest economic and social progress have been those with a strong retail sector. Why has retailing become such a popular method of conducting business? The answer lies in the benefits a vibrant retailing sector has to offer— an easier access to a variety of products, freedom of choice and higher levels of customer service.

As we all know, the ease of entry into retail business results in fierce competition and better value for customer. To enter retailing is easy and to fail is even easier. Therefore, in order to survive in retailing, a firm must do a satisfactory job in its primary role i.e., catering to customers. Retailers’ cost and profit vary depending on their type of operation and major product line. Their profit is usually a small fraction of sales and is generally about 9-10%. Retail stores of different sizes face distinct challenges and their sales volume influences business opportunities, merchandise purchase policies, nature or promotion and expense control measures.

Over the last decade there have been sweeping changes in the general retailing business. For instance, what was once a strictly made-to-order market for clothing has now changed into a ready-to-wear market. Flipping through a catalogue, picking the right colour, size, and type of clothing a person wanted to purchase and then waiting to have it sewn and shipped was the standard practice in the earlier days. By the turn of the century some retailers set up a storefront where people could browse, while new pieces were being sewn or customized in the back rooms. Almost all retail businesses have undergone a similar transition over the years.

Synopsis sample - HR

MANAGEMENT THESIS TITLE

“Study of transition of management from a small scale unit to a large scale unit, with special focus on the behavioral aspects of the top management.”

This thesis proposes to study an organization which developed from a small scale unit into a large scale, with the major focus on the behavioral aspects of the top management team of the organization.

A firm’s performance is a "reflection" of the characteristics and actions of the team of managers central to the firm, which is the top management of the firm. I have taken up this topic for study keeping in mind the present scenario of diversification & growth of industries and economy. This phase has just begun and will continue to grow in future. Hence this study will be helpful to all the organizations which wish to grow by leaps & bounds.

The top managers’ behavior has got lot to do with the entire firm being viewed as a closely knit group with less number of conflicts. Trust is a result of the many shared experiences and common values experienced through the proximity of members and endurance of the social structure of the firm.

Therefore, the basic purpose of my study is to establish the proportional relation between the behavioral aspects of the top management and the success and growth of an organization.

OBJECTIVES

It is a known fact that satisfied employees and subordinates stand as solid as rock with the organization & its top management. The wholesome support of the employees helps in escalation of the organization. But this support can be garnered only when the top managers’ management style is participative in nature and they make each & every employee feel that this organization is their own. The behavioral aspects of the top management is demonstrated right from the way the strategic planning is done – whether employees have a say in that or not, the way meetings are conducted – how every person is seated at the meeting & whether everyone is heard, the way good performance is rewarded by the top managers and even whether the top managers are approachable by even the small executive of the firm.

This thesis will help me obtain in-depth knowledge of all the above mentioned aspects in light of the present era of diversification & globalization.

I would be able to study the conduct of the top managers who steer the organization to the correct trail. This would definitely help in my career to understand the implications of my superiors at work.

It would also help me distinguish the HR behavioral theories & the actual HR practices.

The possible value addition to the organization under study would be that the top managers can strengthen their positive behavior and cut down on the behavioral aspects which send out negative implications to the employees.

This study would build up my analytical skills as well as act as a stimulant to thinking & build up my knowledge base.

LIMITATIONS

The probable limitations that I foresee as of now are:

The major limitation would be of collecting information via a questionnaire from the employees of the organization. They may perceive it as an uninvited interference and may not respond appropriately.

Adding to the above point would be non-response errors from the part of the respondents to the survey – this can be Unit non-response or Item non-response. Situational errors may also occur due to the fact that the survey can be conducted only in the work-place in the presence of various colleagues.

The analysis part strictly depends on the responses that I am able to obtain. Hence it is possible that the analysis is not 100% accurate and may or may not conform to the various behavioral theories.

METHODOLOGY

First I have to select an organization, which has undergone the transition from a small scale unit into a large one. I have already done this and zeroed in on Adani Group as the organization of my study.

Then I would undertake a ground study of the organization – right from its inception to its current position. I would take help of the internet as well as a visit to the organization. Hence this would include primary as well as secondary data.

Next step would be preparation of a questionnaire which would be distributed to the employees of the organization. Only the employees would be able to help me develop knowledge about the behavioral aspects of the top management right from beginning to the current position. This would be my PRIMARY source of information.

SECONDARY data, as in behavioral theories as well as information from the internet would also be included in the study in order to validate my findings.

The last step is an in-depth analysis of the entire information obtained from both the primary as well as secondary sources of information. I would collate all the information in sequence and present it through a report.

SCHEDULE

The anticipated schedule for the research work in the available time frame is as follows:

Week 1 - Will be studying the MT title and its implications in detail.
Week 2 - Will be referring to the reference books & the concerned theories to get in-depth knowledge to proceed further. Simultaneously I would explore the organization and its
various divisions/SBUs.
Week 3 - Will be preparing the questionnaire and hence start collecting the primary information. Will also prepare the Interim Report stating the status of my study till then.
Week 4 - Will complete the process of collection of entire primary information on my study.
Week 5 - Would be assembling all the behavioral theories of HR that go with the data collected. Would also surf the internet for some secondary data which go with the study.
Week 6 - Would carry out the data analysis.
Week 7 - Would complete the data analysis and collate information from both the sources of information in order.
Week 8 - Would write down the final thesis & present the findings.

REFERENCES

Books referred to:

· Organizational Behavior, ICMR

· Strategic Human Resource, ICMR

· Human Resource Management, K.Ashwathappa.

Websites referred to:

· www.entrepreneur.com/tradejournals/article/132300894.html

· www.citehr.com