Inducing Greater Responsibilities in Today's Managers

Inducing Greater Responsibilities in Business Managers: Challenge in the Present Era of Globalization:

Inducing Greater Responsibilities in Business Managers: C hallenge in the Present Era of Globalization National Research Conference, New Delhi 12 th - 13 th January 2011 Paper Presentation 1 (c) Tigga et al, 2011

Inducing Greater Responsibilities in Business Managers: Challenge in the Present Era of Globalization:

Inducing Greater Responsibilities in Business Managers: C hallenge in the Present Era of Globalization Dr. Rohit V. Kumar Associate Professor, Xavier Institute of Social Service, Ranchi Email: rohitvishalkumar@gmail.com Dr. Pramod Pathak Associate Professor, Indian School of Mines, Dhanbad Email: pramod_ism@rediffmail.com Amar E. Tigga Assistant Professor, Xavier Institute of Social Service, Ranchi Email: aetigga@yahoo.com 2 (c) Tigga et al, 2011

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Focus of today’s business : Achieving targets … Implications: Financial Crisis, Scams, Collapsing of Corporate Global Business Concern – ‘All is Not Well !’ What’s wrong and what should be done? Introduction Role of Business Education Institutions? How to Induce Responsible Management Practices Effectively? 3 (c) Tigga et al, 2011

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Emergence of current business education scenario Current business education and corporate situation Why business schools failed to deliver? Proposed business education delivery model Benefits Paper Discusses on… 4 (c) Tigga et al, 2011

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Prior to 1950’s: Business education – A neglected field Survey of Ford and Carnegie foundation (1959) – E xposed its poor status With grants support and funds Shift in focus to Research & analytical approach (Bennis & Otoole, 2005) Now, Overemphasis on Profit Maximization (Hollan, 2005) Emergence : Current Business Education Scenario 5 (c) Tigga et al, 2011

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Various Universities & others – also started the management courses Emergence : Current Business Education Scenario 6 1949 1953 1961 1962 1972 1984 (c) Tigga et al, 2011

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One of the Fastest Growing Sector Emergence : Current Business Education Scenario With Globalization (1991), huge demand for managers and management education Lead to opening of many b-schools 7 (c) Tigga et al, 2011

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With globalization, business schools growth followed the corporates growth Financial Crisis: 2008, raised various questions on Business management practices Quality, methodology & purpose of business schools US corporates witnessed financial irregularities even before financial crisis Enron, Tyco, World.com etc. (Potsuris, 2002) Current Business Education and Corporate Situation 8 (c) Tigga et al, 2011

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India also have history of scams Hometrade.com (2000), Satyam (2009), 2G Spectrum (2010) etc. Scams, financial irregularities, materialistic corporates’ culture Creating misery and collapsing of corporates World has felt the need of skilled and knowledgeable managers with responsible behaviour and practices. Current Business Education and Corporate Situation 9 (c) Tigga et al, 2011

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Fast growth lead to half-baked management institutes Compromised the quality and purpose Succumbed to short term goals Commoditization of MBA programs for mass production Why Business Schools Failed to Deliver? 10 (c) Tigga et al, 2011

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Minimal importance to societal responsibilities Ethics, CSR as optional subjects Thus, felt the need to integrate the responsible practices in education delivery framework. Why Business Schools Failed to Deliver? 11 (c) Tigga et al, 2011

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Aims to inbuilt responsible practices within the system India, as globalizing country, can prepare managers for global social needs Indian b-schools – create a reputation of having strong responsible behaviour Global advantage Proposed Business Education Delivery Model 12 (c) Tigga et al, 2011

Proposed Business Education Delivery Model :

Proposed Business Education Delivery Model 2. STUDENTS’ INTERACTIONS 1. INTERNAL PRACTICES 3. EXTERNAL PRACTICES Business Education Institute Model Focuses on Three Dimensions of Institutions 13 (c) Tigga et al, 2011

1.Internal Operational Practices:

CORPORATE MANAGERS STUDENTS INSTITUTE SOCIETY SOCIETY Management institutes – Organizations working in society Equally responsible to broader societal goals Need to first internalize the principles of responsible practices Need to have an effective & lasting impact on students 1.Internal Operational Practices 14 (c) Tigga et al, 2011

1.Internal Operational Practices …cont:

Vision & Mission Financial Practices Policies & Practices for Employees & Students Reward & Promotions Schemes Employee Satisfaction Ethical Practices Societal Responsibilities Internal Practices Need to Demonstrate Responsible Behavior 1.Internal Operational Practices …cont 15 (c) Tigga et al, 2011

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Main focus in today’s b-schools: developing skills & knowledge, maximising shareholder value Societal values & responsible practices left to the individual choice as options Need to stress on MQ – morality quotient (Pathak et al, 2009) Students’ spend very important time of their life in b-schools Model suggests to utilize every activities of students to induce responsible behaviour 2. Institute-Students’ Interaction Process 16 (c) Tigga et al, 2011

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Make students realize their responsibilities and accountability to all stakeholders “They are the part of something larger than themselves.” (Clayson & Haley 2005) 17 (c) Tigga et al, 2011

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B-schools running as business organizations Achieving short term goals & maximising profits Compromising ethical practices 3. External Practices 18 (c) Tigga et al, 2011

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MANAGEMENT INSTITUTE EXTERNAL PRACTICES Society Society Society Society Society Society MEDIA ACCREDITATION AGENCIES RANKING AGENCIES ALUMNI CORPORATE GOVERNMENT 19 (c) Tigga et al, 2011

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World is recognising the importance of responsible practices Inclusive and sustainable growth strategies are the need of global business houses. India – a globalizing country, can adapt this model to prepare and provide such managers and can gain global importance. Benefits from the proposed model goes to all the stakeholders and society at large Benefits from the Proposed Model 20 (c) Tigga et al, 2011

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CORPORATE B-SCHOOLS STUDENTS Reputational Asset Sustainable Growth Greater Acceptance Growth & Stock Price Satisfaction: Empl / Cust Stakeholders’ Cooperation Reputational Asset Accreditation & Rankings Effective Learning Placements & Growth Greater Acceptance Faculty Retention Sense of Achievement Growth & Development Life’s Meaning & Satisfaction Responsible Positions Experiencing during Studies Better Prepared Benefits from the Proposed Model 21 (c) Tigga et al, 2011

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Business and responsible behaviour need to be integrated for sustainable growth. Aim to maximise social values and improve profits through it. B-schools should not adopt negative values, rather make business houses and corporates to adopt positive values. Need to reverse the flow Conclusions 22 (c) Tigga et al, 2011

Proposed Business Education Delivery Model :

Proposed Business Education Delivery Model 2. STUDENTS’ INTERACTIONS 1. INTERNAL PRACTICES 3. EXTERNAL PRACTICES Business Education Institute 23 (c) Tigga et al, 2011

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Conclusions 24 (c) Tigga et al, 2011

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