Do Higher Education and Job Search Contradicts Each Other?

Article by : Dr. Mukta Mukherjee, Assistant Professor, CBS

I remember that when I had to go to USA to pursue my long nourished dream of doctoral studies in Economics I had to go for a visa interview to get my necessary visa interview. The lady at the US consulate beside other questions asked me what are my previous qualifications in my chosen stream are and why I want to seek further a doctoral degree. After learning that I had already invested eight years from my under-graduate days towards economics and was willing to invest further at least five to six years for the same subject she was astonished at my patience and knowledge hunt.
This is a major question in today’s education system before each student is that should they go for good jobs or go for higher education if they get a chance. Beside the fact, the higher education like doctoral degree in abroad countries is relatively also very competitive and costly (in some streams has to be borne by educational loan), there is another factor that is involved is the time cost. The time they would invest in an education system as a student is also the time they lost out in the experience that they would have gathered in the job itself. Second, the gap in the wage earning and the stipend they earn as student is beyond comparison. Finally, the patience and tenacity required to complete the higher degree requires a serious commitment.
The above are major factors for drop out from higher education streams in both India and USA. Further, the turnover from education to industry is very high in many streams. I remember just after I had successfully completed my M.Phil from Delhi School of Economics a premier institute in India in 2005, I had the option of high paid corporate jobs. My immediate advisor wanted me to seek the corporate jobs avenue. Those of our batch mates who have actively pursued the corporate sector have gained in both in earning and position. However, the educational system gives a freedom of choice to an individual although the salary is not comparable with that of the corporate sector but freedom is enjoyable as such. Beside if you enjoy teaching then the hours of labor that has to be put for the profession becomes less taxing.
A logic that I tried to formulate is that my skills would only enhance and my job market would expand in future with abroad experience. But in hindsight today I feel that the job market may shrink with a higher skills attainment if the market for such skills does not exist or if the earning from such skills is very low compared to their ideal state. Further, as skills is like a weapon which gather rust the longer it remains unused a gap of years can make it difficult to join the job stream or use it in future if there are age constraints. Degree itself is not meaningful , but the skill that is gathered to attain the degree are meaningful.
The only thing I can put forth before students of Calcutta Business Schools that whether they decide to join industry or education stream they should think before well they commit and should not deviate from their objective. If they make use of the time and give dedication to whatever field they have chosen it will be fruitful for them in future. A popular fable story is that a person was very thirsty and in order to satisfy his thirst for water he started digging a well. Then, mid- way he left and started digging water at another spot for well, which again he left and thought another spot would be better to gain water. In this way at the end of the day he found that he has dug at multiple spots for wells but did not get water from any one of them. He realized, that had he put the same effort at only one spot the entire day then no matter whatever was the depth of the underground water he would have been successful in getting the water. Therefore, it matters most that the track you choose do not leave it half- way but reach till the end. A complete bridge is better than an incomplete bridge.

Earnings Management and Corporate Governance: A brief overview Edit

Article by : Prof. Paromita Dutta, Assistant Professor, CBS

Corporate governance is defined as the relationship among the corporation and all of its stakeholders. It is defined as a set of mechanisms through which outside investors protect themselves against expropriation by the insiders. Corporate governance initially appeared to minimize conflict of interest between management and shareholders given the separation between ownership and control but, duality takes place when the chairman of the board and CEO roles are combined.

On the other hand, Earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers.

Firms often resort to earnings management practices with a variety of motives.  Several factors may motivate firms to manage their earnings but ‘market reaction’ has remained as one of the most important factors. If reported earnings of a firm are markedly less than the estimated earnings, it may adversely impact its share prices, and if this trend continues, it may give rise to questions in the market about the earnings stability of the firm. Hence, managers are often motivated to use earnings management to smooth out fluctuations in earnings performance. Receiving increased amount of bonus, fear of government investigation and intervention may also motivate managers toward earnings manipulation.

Earnings management can have significant impact on all stakeholders of a firm including the economy and society at large. This raises the question as to what can protect the interest of the stakeholders with regard to earnings management, and here emerges the role of Corporate Governance system in place.  An effective corporate governance system ensures that managers of a firm work at the best interest of the shareholders, and report true financial position of the firm. Several studies in United Kingdom and United States show that, company boards influence earnings management and the quality of financial statements.

Worldwide, many reforms have been initiated to strengthen corporate governance practices to restore investors’ confidence on financial reporting practices of publicly traded firms. The underlying belief behind all such initiatives is that, an effective corporate governance mechanism helps in enhancing the quality of reported earnings through proper monitoring of managers in the financial reporting process

I would like to highlight some of the benefits of corporate governance to my CBS students, who will be the future manager of an organization viz; good corporate governance ensures corporate success and economic growth, maintains investors’ confidence, creates a positive impact on the share price and creates a transparent set of rules and controls in which shareholders, directors and managers have aligned incentives.

Manager or Leader? Corporate need what?

By- Prof. Kankana Mukhopadhyay

Organization needs persistent, tough, smart, analytical managers with good will that is valued by its stakeholders. But, even with these qualities, managers cannot properly shape employees’ passions and imaginations that are appreciated by customers. Even they are unable to anticipate or simulate the changes that the organization requires. Managers are good at routine kind of situations where not much innovativeness, power of anticipation, risk taking abilities required. Leaders are often attracted towards ideas. They feel instigated to raise the expectation level of their surrounding people. Therefore, discussions are required in this regard to understand what the corporates want, managers or leaders.

It may be argued that inspiration, vision and human passion are predominantly required to ensure corporate success. These are often termed as leadership elements. Hence, the point of argument is whether managers are sufficient to visualize the big picture beyond the wall and inspire and subsequently drive human passion in fulfilling those aspiring parts of vision. So, the question is “Can managers become effective leaders”? The answer is ‘yes’. Let us understand the concept with a story:

Once upon a time a group of soldiers after fighting and winning a battle on their way back home lost into a hilly forest. They were hungry and fatigued, as a result did not have much strength left to search for the way out. Under the approaching dark, they were disoriented and had no chance of surviving the night in the freezing temperatures. Whatever little ways were visible; all appeared to be the same to them. Hence, they were completely clueless which way to go.

Suddenly, one of them found a map hanging from the zip of his kitbag. He alerted everyone and appeared to be plotting a route. Everyone felt rejuvenated and started following his instructions. In this process everyone was so engrossed that ultimately they found out a way. After coming back to the camp one soldier looked at the map very enthusiastically and found that the map had nothing to do with the route they explored, it was actually about a different distance place.

It’s like the old saying – when you’re lost, any old map will do.

Leadership entails vision. Otherwise where are you leading people to? If you don’t know where you want to go to – and if you can’t communicate that direction effectively – then you have no right to ask people to join you on the journey.

But, as we understand that only giving direction is not sufficient, it has to be properly executed with proper coordination, interaction and implementation of the technical know-how. Hence effective management is a perfect blend of leadership and managerial skills. Their congruence ensures productivity that is valued by the customers. Hence, in search of excellence, corporates are left with no other option but to create leaders with effective managerial orientation.

In this endeavor, the roles of B-Schools are enormous in forming incubation centers wherein young graduates with fresh brains can experiment with their innovative ideas and thereby learn effective people management skills to shape their ideas into productive outcomes that are of value to the society.

THE WEEK THAT WAS 20.11.2017 – 24.11.2017

Author : Prof. Tamal Dutta Chaudhuri, Principal, Calcutta Business School

The stock market has been recently trading at quite high levels and the NIFTY closed at 10389 levels on Friday, November 24, 2017. There is talk that it will cross 11000 levels by the year end. The issue is, is this plausible?

Figure 1 shows that, broadly NIFTY (blue) and India VIX (red) are inversely related. India VIX has been experiencing an overall downward trend since 2011, although there have been volatility spikes and marker corrections. Figure 2 shows upward trend in India VIX from May 2017 and a cup and handle formation during February to August 2017. After that India VIX has seen a double bottom, and subsequently it has refused to fall further

Figure 1

In Figure 3, the Andrew’s Pitchfork formation and the Fibonacci Fan do not indicate a strong downward movement in the India VIX. Thus, overall market apprehension remains and market corrections are being factored in, in decision making.

Figure 2

Figure 3

Nifty started at a level of 7963 on 1st. January, 2017. To keep the ratio of Market Capitalization to GDP to be constant, and assuming a rate of GDP growth of around 7.5% in 2017-18, we should see NIFTY touch 8560 levels in the next 4 months. We can have two scenarios. First, Nifty falls from 10389 levels to 8560 levels, a drop of around 1800 points in the next 4 months. Second, the ratio market capitalization to GDP rises to say .90 levels or more. The latter can only happen with significant FII inflow, as domestic savings growth alone cannot support this, without huge portfolio reallocation from debt to equity. Already interest rates in banks have gone down significantly, and hence this increased interest in stock market, both direct, and through mutual funds. If interest rates do not fall further, I do not see the possibility of a further significant rise in NIFTY in the next 4 months. This probably is reflected in the increase in the trend gradient of India VIX in Figure 2.

From Pedagogy to Andragogy & Heutagogy: Transforming Higher Education through Student-Centric Learning

Author : Prof. Sanjib Biswas, Assistant Professor, Calcutta Business School

Broadly, learning is defined as a change in an individual’s behavior caused by experiences or selfactivity. Over the last two decades, changing nature of global operations and added dimensions of competitive advantage have influenced significantly the relationship between management education and business. Management education is not only saddled with the responsibility of catering to needs of industry by developing industry-ready students through quality education, but also to fulfill the requirements of the society. Thus, management education has a holistic perspective emphasizing on academics, socio- political, economic, institutional, and cultural aspects. It needs to build a portfolio of capabilities in the students that includes functional knowledge, interpersonal skills, creativity, spirit of entrepreneurship, administrative, and other non-cognitive skills. The learners are required to play a role of an analyst for deriving meaningful actionable insight from the information they receive and accordingly disseminate the same. The definition of employability has undergone a radical change, as it demands employees who are innovators, complex problem-solvers, and good communicators, and who are adept to changes in real-life scenarios through application of what they learnt. In essence, coming decade requires industry ready graduates having inquisitiveness about new things, creativity, self-directedness, innovativeness, and knowledge of how they learn. Because of that, focus has been shifted to learner-centric, outcome based education. There is a growing need to organizational inputs into design of the curriculum.

The conventional leaning models rely predominantly on classroom teaching wherein the teachers play central role by designing and delivering the courses. The students play roles of passive receptors of information without being actively involved in the course. In effect, the courses do not result into desired outcome. Motivation level of the students goes down and the scope of innovativeness and independent thinking gets ceased. This in turn generates qualified graduates instead of industry ready professionals and leaders. However, question is “Can a lecture make students learn?” “Can we remember everything delivered through lectures?” Research has shown that it is impossible for students to absorb all of the information in a lecture (limited short-term memory). Eminent American educator Edgar Dale contended that, selection of instructional method is very important for enabling students to retain knowledge. He introduced the Cone of Experience concept (1946) which shows the progression of experiences from the most concrete (at the bottom of the cone) to the most abstract (at the top of the cone).

Figure 1: Cone of learning

The cone suggests that practicing action learning, the students can retain 90% of what they learnt. Therefore, it is imperative to design and deliver the curriculum with greater emphasis on sensory-based perceptual learning centered on students. Student-Centric Learning (SCL) allows students to shape their own learning paths and places upon them the responsibility to actively participate in making their educational process a meaningful one. SCL method facilitates how to learn. Instead of being a passive vessel filled by faculty member’s knowledge, a student is required to relate and apply the knowledge. In SCL mode, the role of an instructor is just to facilitate the learning process while igniting interests of students for leaning and helping them to build capabilities.

Figure 2: Conventional vs Student centered learning

In other words, higher education calls for student centric adult education in lieu of conventional pedagogy. Malcolm Knowles (1980) espoused the concept of ‘Andragogy’ wherein he argued for considering learner’s interest in designing and delivering courses instead of focusing on what instructors believe. According to him, educational process must be cooperative and based on guided interactions Furthermore, within SCL there is an intrinsic motivation for learning, with the emphasis being on cooperation, rather than competition, between students. As part of this approach, students are given the opportunity to compare their ideas with their peers and their teachers. between the instructors and students where the instructors help students to discover and develop their own potential. Knowles propounded that adults are self-directed learners who bring wealth of experience in educational settings. The adults are motivated by activity-based learning instead of being dependent on teachers only as in the concept of pedagogy. Knowels proposed a seven-step process for practicing andragogy, which includes following steps:

i. Create cooperative learning environment

ii. Mutual planning for setting goals

iii. Identification of learners’ needs and interests

iv. Formulation of learning objectives by the learners based on their needs and individual interests

v. Design of sequential activities directed towards established goals

vi. Selection of methods, materials, and resources

vii. Evaluation of quality of the learning experience for the learner continuously while focusing on outcome.

Extending the concept of andragogy, Hase and Kenyon (2000) advocated for advanced self-determined learning concept known as “Heutagogy”. In this method, learners acquire both competencies and capabilities. In effect, the students develop the ability “to take appropriate and effective action to formulate and solve problems in both familiar and unfamiliar and changing settings” (Cairns, 2000, p. 1, as cited in Gardner, Hase, Gardner, Dunn, & Carryer, 2007, p. 252). The learner is seen as, “the major agent in their own learning, which occurs as a result of personal experiences” (Hase and Kenyon 2007). The learner decides on what to learn and how to learn. Advancing from the concept of andragogy, heutagogy puts emphasis on developing capability, self-reflection, and metacognition or an understanding of one’s own learning process, double-loop learning, and nonlinear learning and teaching processes.

In essence, the point is to focus on learner-centric, outcome-based education. Outcome based education focuses on result-oriented thinking wherein the curriculum is designed and delivered to enable the students to acquire requisite knowledge for developing skills and right mind-set. At the end of the programme, the students are required to deliver outcomes i.e. performances using their competencies. In India, there is an emerging need to design and execute the programmes in tune with the global standards like Washington Accord, for imparting quality education. India, being a signatory nation in Washington Accord has entrusted National Board of Accreditation (NBA) with the responsibility to evaluate quality and effectiveness of the programmes offered by the academic institutions across the country. The central idea is to evaluate the programmes based on outcomes to satisfy the needs of the stakeholders such as students, faculty members, staff members, industry and employers, parents, the Government, and society.

Calcutta Business School being a progressive b-school in the eastern region is focused on meeting the changing needs of the stakeholders since its inception. Like other top b-schools, Calcutta Business School emphasizes on developing all-round capabilities in students by imparting learner-centric quality education. The curriculum at Calcutta Business School caters to the need of industry as well as society. As a continuously evolving curriculum, Calcutta Business School has incorporated initiatives like Outbound Leadership Practicum, Industry Practicum, International Student Exchange Programme, Rural Immersion Programme etc. for building all round capabilities of its students. Over the years, the students of Calcutta Business School have successfully demonstrated their abilities in leading roles in industries as well as an entrepreneur. Among the top b-schools in the eastern region, Calcutta Business School is committed towards continuous development of the quality of the PGDM programme at par with the global standards.

References

1. Blaschke, L.M. (2012). Heutagogy and lifelong learning: A review of heutagogical practice and self-determined learning. International Review of Research in Open and Distance Learning, 13(1), 56-71.

2. Blaschke, L. M. (2013). E-learning and self-determined learning skills. In S. Hase & C. Kenyon (Eds.), Self-determined learning: Heutagogy in action. Bloomsbury Academic: London, United Kingdom.

3. Blaschke, L. M. (2014). Moving students forward in the PAH continuum: Maximizing the power of the social web. In L. M. Blaschke, C. Kenyon, & S. Hase (Eds.), Experiences in selfdetermined learning. United States: Online Shopping for Electronics, Apparel, Computers, Books, DVDs & more Publishing.

4. Gardner, A., Hase, S., Gardner, G., Dunn, S.V., & Carryer, J. (2008). From competence to capability: A study of nurse practitioners in clinical practice. Journal of Clinical Nursing, 17(2), 250-258.

5. Hase, S. and Kenyon, C. (2000). From andragogy to heutagogy. Ultibase, RMIT.

6. Hase, S. (2009). Heutagogy and e-learning in the workplace: Some challenges and opportunities. Impact: Journal of Applied Research in Workplace E-learning, 1(1), 43-52.

7. Hase, S, & Kenyon, C. (2007). Heutagogy: a child of complexity theory. Complicity: an International Journal of Complexity and Education, 4 (1), 111-118.

8. Knowles, M. S. (1980). The modern practice of adult education: From pedagogy to andragogy. Chicago: Follett.

9. Knowles, M. S. (1984). Andragogy in action. San Francisco: Jossey-Bass.

10. Kenyon, C., & Hase, S. (2010). Andragogy and heutagogy in postgraduate work. In T. Kerry (Ed.), Meeting the challenges of change in postgraduate education. London: Continuum Press.

11. Maclellan, E. and Soden, R. (2007) ‘The Significance of Knowledge in Learning: a Psychologically Informed Analysis of Higher Education Students’ Perceptions’. In: International Journal for the Scholarship of Teaching & Learning, 1(1), 1-18.

12. Machemer, P.L. and Crawford, P. (2007) ‘Student Perceptions of Active Learning in a Large Cross-Disciplinary Classroom’. In: Active Learning in Higher Education, 8(1), 9-30.

13. Rust, C. (2002) ‘The Impact of Assessment on Active Learning’. In: Active Learning in Higher Education, 3(2), 145-158.

14. Tsui, L. (2002) ‘Fostering Critical Thinking through Effective Pedagogy: Evidence from Four Institutional Case Studies’. In: The Journal of Higher Education, 73(6), 740- 763.

Challenges for B-schools in India: Some Thoughts

Author : Prof. Shekhar Chaudhuri

Director and Chair Professor in Strategic Management, Calcutta Business School

Former Director, IIM Calcutta; Former Professor of Business Policy, IIM Ahmedabad

———————

Management Education, across the world has experienced phenomenal success over the years. The growth of B-schools in India also has been very significant from the early nineties till the beginning of the second decade of the 21st century. However, since the beginning of the global recession in 2008 management education has been facing difficulties. Over the last several years the placement scenario for MBAs from less known private B-schools and even the newer IIMs has not been very encouraging. As a result many B-schools have had pull down their shutters.

B-schools in India are currently facing several challenges among which are; (a) need to create and maintain excellent infrastructure; (b) need to recruit, motivate and retain high quality faculty; (c) need to make the teaching-learning process more case – based; (e) need to provide international exposure; (f) need to provide opportunities to students to develop special skills in several new areas where the B-school may not have faculty members, etc. The MBA Programme, worldwide, has become very standardized, and, as a result, B-Schools finds it difficult to differentiate their programmes. If one looks at the course outlines of similar courses offered by different B-Schools one would find it difficult to locate any significant differences. In order to provide the students an excellent learning experience B-Schools are trying out various methods. All this requires money and as a consequence the cost of MBA education has been rising. For those schools which have already created a strong brand name the higher fee charged to students may perhaps be justified; however, other schools that are still in the development stage have to make up front investments. Therefore B-Schools require deep pockets.

Another development on the horizon is the much awaited IIM Bill. The passing of the IIM Bill by Parliament is likely to pose an existential challenge to the not so well known private B-Schools. So far these schools did not face any problem in offering PGDM programmes as the oldest B-Schools, the IIMs at Ahmedabad, Bangalore and Calcutta were also offering PG Diploma programmes. However the smaller private B-Schools are likely to face difficulties in marketing diploma programmes. Many may decide to get affiliated with existing universities.

In this context I would like to briefly mention the initiatives taken by Calcutta Business School in response to the challenges discussed above. We have designed our PGDM curriculum so that our students become “industry ready”. We also want our students to develop an “entrepreneurial mindset” with a “global perspective”. Given the enormous spread of internet usage and other technologies students know a smattering of various management subjects which becomes an obstacle to the learning process in the class, faculty members have to continuously innovate to not only remain abreast of the developments in their fields but also have to experiment with different methods to hold the attention of the class.Therefore at CBS we give considerable importance to “experiential learning” which helps to keep the students engaged with the learning process. In many courses “projects” are given to students to help in development of application orientation and a managerial focus.

Some of the initiatives that have been or are being implemented at Calcutta Business School are:-

• Dual Specialization
• Institute sponsored International Study Tour
• Outbound Leadership Practicum in the Himalayas
• Rural Immersion Programme
• Compulsory course on “Creating and Managing New Ventures”
• Case Method of Teaching
• Three “for credit” courses for developing communication and soft skills.
• Industry Practicum
• Foreign Language

Our objective is to provide a learning environment that helps our students develop analytical and problem solving skills, action orientation and leadership capabilities.

Shaping the future of management education

By the end of this decade we can see two trends emerging—the true globalisation of Indian management education and much higher usage of technology.

For the past several decades, management education has been one of the most coveted disciplines globally. Applicants seek quality education that can fast-track their understanding of economies and business. Corporate firms are looking for job-ready individuals who can understand the bigger picture and contribute to their growth story. Business school graduates are driving change through leadership positions across industries and sectors.

Being a relatively recent discipline and the one that is context-specific, management education must undergo frequent changes. Innovate or die is the mantra that business schools have to adopt in order to stay relevant. They must appreciate the changes in the way business is done and accordingly review their curriculum, methodology and people. Business schools that insist on following the traditional approach will be doing a disservice to their students and to the recruiters as well.

The decade gone by saw two significant changes that management schools went through. The first was in terms of student profile. Diversity came into focus. Scholarship programmes were started for women students. Students with work experience across industries were invited back to the classroom—for this, the focus in the entrance criteria shifted from test scores alone to the candidate’s experience and exposure. Several business schools changed their entrance criteria and started giving credit to qualities beyond a test score. For example, in 2009, the School of Inspired Leadership introduced Caliper, a profiling tool that tests applicants for their leadership potential. The intent was to strengthen the diversity in business school classrooms.

The second change was industry involvement. Increasingly, senior executives became more conscious of the importance of contributing to education and were willing to make the time for this across business schools. They came on board as mentors, visiting faculty, guest speakers and for research collaborations, offering live projects—over and above industry internships—which gave students the opportunity to learn in a real-world setting under the guidance of seasoned professionals. Looking ahead, we can see two trends emerging—one is the globalisation of management education and the other is the increasing use of technology.

The world has definitely shrunk and business schools must swim with this tide. More and more students today ask for global exposure. While exchange programmes have long been part of the business school curriculum, now joint degrees are being offered as well, which lead to a diverse learning experience.

The time-honoured case study method of business schools is also being augmented by global immersion experiences where students do a live project overseas. This kind of real-world exposure in a different context and setting can prepare students for global leadership roles—much needed in today’s corporate context.

Increasingly, business schools are playing host to India immersion programmes for senior executives of other nationalities. They partner with other business schools and consulting firms to arrange a learning experience for their executive education programme participants. Recently, we met a delegation of women leaders from Chile to share with them our inspired leadership model. Such dialogues increase awareness about the Indian education system and deepen global partnerships, which, in turn, pave the way for students to enhance their learning.

One of the biggest reasons for this kind of cross-cultural exposure is the increased use of technology in the current business setting. This, in itself, is another upcoming trend in higher education today. Till recently, technology-related discussions may have been restricted to the MIS or statistics classrooms. Soon, technology will make its way into every classroom.

Going forward, the acute shortage of credible faculty and the resulting costs will lead to greater acceptance of online courseware. This can be of two types—recorded videos of in-house faculty or MOOCs (massive open online courses) by other schools. MOOCs are available freely across subject areas. MOOCs also give an opportunity to students to add to their repertoire of skills and improve the opportunities available to them after college. Today, a hybrid model of online and offline learning is developing the world over to maximise student learning potential.

In today’s digital era, an in-depth technical orientation is critical in every branch of learning. Across the board, technology has seeped into management subjects. Social media awareness in marketing, big data analytics, tech-based innovation, knowledge management, e-commerce and HR analytics are all gaining importance. Faculty and learners alike must be able to dissect data and be conversant with technology.

Business schools are fast accepting this fact and conversations are on about how to get the best faculty on board for this. Superior learning can happen if faculty has first-hand exposure to these areas. For this, the current trend of industry involvement as faculty is essential to make students job-ready.

Further, tech-savvy professors are also starting conversations through communities of practice on social media commons such as LinkedIn, SlideShare and others. This enables them to learn about the best practices from across the globe and selectively apply what is appropriate to their context. The rate of change of curriculum has to keep up with this tech-enabled speed of knowledge sharing and dissemination.

This invigorating combination of globalisation and technology-orientation will make business schools the best place to learn and grow. Those who keep pace with this transformation will emerge as winners in the minds of their students and industry partners as well.