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CHAPTER -I

INTRODUCTION
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AN EVALUATION OF PRIVATE SECTORS PARTICIPATION IN HIGHER


EDUCATIONAL INSTITUTIONS TO DEVELOP EMPLOYABILITY SKILL OF
STUDENTS.

Introduction:
Higher education plays a vital role in the socio-economic development of a country. The
report of the World Bank (1994) referred, higher education has the main responsibility for
equipping individuals with the advance knowledge and skills required for positions of
responsibility in government, business and professions. It is universal appreciation that
higher education provides a wide range of increasingly sophisticated and very changing
variety of trained manpower needed in education, engineering, medicine, agriculture,
management, communication, law, public and private administration and services, social
work etc.,

During the last decade, the education sector has dominated economic planning. Despite many
new national missions/programs and reforms agenda, by both the central and state
governments with private sector intervention, the higher education sector is in a state of
complete flux. While we have tremendously enhanced capacity, we lag in quality, given
inadequate autonomy to our Universities. Centralized control and a standardized approach
remains at the heart of regulations. We are in the 21st century with a mid-20th century
regulatory architecture. During this time we have seen countries like China, Korea and
Singapore, transform from developing to advanced economies in a decade due to strategic

planning and a larger vision that correlated economic development to transformation in the
education sector, in particular higher education and research, to become globally competitive.

After independence, which coincided with the post-Second World War era, India made
concerted efforts to improve access to higher education and the system grew rapidly after
independence. By 1980, there were 132 universities and 4738 colleges in the country
enrolling around five percent of the eligible age group in higher education. No doubt
Indian higher education is one of the second largest; other one is China and the United
States. Yet it is one of the most complex ones.

Up till 1980, the growth of higher education was largely confined to liberal arts, science and
commerce. Not only the government supported higher education by setting up universities
and colleges, but also took over the responsibility of running the institutions set up
through private sector, which were known as grant-in-aid (GIA) institutions or private
aided institutions. In such institutions, though the private sector financed major part of the
capital costs, public subsidies were provided to them to meet a part of the recurrent
costs, and occasionally for some capital works. Public funding was accompanied with
considerable regulation of private institutions by the government (World Bank, 2003).

Over a period of time, private aided institutions became a mirror image of the government
run institutions. This had serious repercussions on the future of higher education in India.
During this period, this de facto nationalization of private higher education not only killed
community-led private initiatives, but gave a serious blow to the standards of the private
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colleges, many of which had over the years set high academic standards for
themselves. On the other, the growing demand for higher education resulted in rapid
growth in enrolment as its relevance in business and industry was felt by people and
also due to the affordability of the middle income group. Increased demand for higher
education laid considerable stress on governmental resources which resulted in private
participation in higher education. The state had no choice than to accept private
participation for two reasons:
(i) Quality-wise they had maintained standards and (ii) State Resources were limited.
The reforms in early 90s saw the middle class population larger, younger, and richer and
the country supported entrepreneurship.

Thus, education was seen not only as a status

symbol but also as a means to get ahead of others. Privatization of higher education has
been natural outcome of several policy changes such as liberalization, privatization,
privatization, etc. during 1991. All these set a pace for accelerated growth of higher
education by the private sector in the country.

Till late 1990s, there was of affiliated colleges in the universities. Yet, there was
realization amongst the promoters of private institutions about the powers of the regulatory
mechanism of the universities and the state governments with regard to checks and
balances on key items such as admissions and fee regulations. Thus, the autonomy of
private institutions was not questioned. Thus the efforts towards moving out of the
strangle held of affiliating universities lead to the establishment of deemed-to-be
universities and a way to get the degree granting powers. Between 2000 and 2005, 26
private-sponsored institutions got the deemed university status. Since education is on the
concurrent list and the State governments can themselves establish private universities
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through legislation in the state legislature. By early 2005, seven private universities were
set up in different states and were also recognized by the UGC.

Attracted by the advantages of the above, a newly constituted state - Chhattisgarh in central
India set up of 97 universities with all India jurisdictions in the year 2002. These had
neither established proper structure or functions or structure- function relations. This was
struck down by the Supreme Court in February 2005 leaving the fate of nearly fifty
thousand students registered in these universities astray; the future of those who acquired
degrees from these so called universities remains uncertain. The Chhattisgarh case is an
example towards a caution to the regulatory system as the gaps that exists in these
regulatory bodies and its impact on the system.

There has been an appreciable growth in the number of universities and colleges in India
since independence from 25 and 700 in 1947 to 354 and 17625 in 2005. The total
enrolment increased from a meagre 0.1 million in 1947 to 10.48 million in 2005
resulting in twelve fold increase in number of university level institutions and twenty-eight
fold increase in number of students.

Yet it can cater to only 7% of the age group

population viz 18 to 25 years which is lower than even that of developing countries as
Indonesia (11%), Brazil (12%), and Thailand (19%). This small proportion of the targeted
population enrolled in formal education at the tertiary level is indicative of the huge gap
between access and demand for higher education in India. The demand is so high that no
country in the world, no matter how rich it is, can afford to meet by the state funds alone,
especially such type which is tuition free or highly subsidized by the state. The total
enrolment increased from a meagre of 0.1 million in 1947 to 10.48 million in 2005. The
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bulk of the higher education system lies in its 131 affiliating universities. It contributes
around 89 per cent of the total enrolment.

Today Higher Education system is geared for the mass catering to meet the demands of a
vibrant democracy committed to the principles of equity. India todays takes the pride for
its best of the Institutions and products. Yet it is not happy with its institutions that are not
of that quality and hence the products are of the same quality.

The World Bank report of 1994 highlights the worth of higher education wherein it is
considerable that institutes of higher learning benefit state and society in several ways: they
equip individuals with advanced knowledge and skills to discharge responsibility in
government, business and professions; produce new knowledge through research and at
least serve as conduit for the transfer, adaptation and dissemination of knowledge
generated elsewhere in the world. The taskforce constituted by World Bank and UNESCO
during 2000 has also observed that higher education helps increase wages and productivity
that directly enrich individuals and society. As against these world opinion in its paper on
government subsidies (1997) that higher education as non merit good based on the
reasoning that it benefited individuals more than the society. The Birla Ambani reports on
the policy framework for Educational Reform too suggested that the government subsidies
on higher education should be minimal it should concentrate on Primary Education sector
as per Constitutional guarantees and perhaps focus Secondary Education area too. They
felt private universities by legislation is perhaps the answer to the malady.

According to the census 2001, the overall literacy rate in the country has gone up by 10
percent during the last 10 years. Over the time there has been emergence of new types of
providers of higher education in India. Not only private institutions proliferated, distance
education programmes gained wider acceptance, public universities and colleges started
self- financing programmes, foreign institutions started offering programmes either by
themselves or in partnership with Indian institutions and non-university sector also
grew rapidly.

The growth of higher education in India has been largely guided by the serviceable
prerequisite of the economy. After independence, the role of the state in planning out a
development path and also in building higher education institutions was guided by
mutuality of purpose.

Now there is an urgent need to work for the development of the educational sector to meet
the need of the emerging opportunities, increasing younger generation population and
challenges of the 21st century. Knowledge is the base for overall growth and if the nation
has to be competitive and to be at par with the globalization pace, we will have to respond
to the market forces. Encouraging investment in education both public and private by
itself will also contribute towards employment, as education is labour intensive.

The FICCI Higher Education Committee has reported inspirational and futuristic, looking at
India as a globally dominant economy, with a high quality higher education sector that
leads and fulfils the needs of society. It is strongly believed that a stratified three tiered
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structure that enables seamless vertical and horizontal mobility of students would be able to
create the desired intellectual, economic and social value.

Today, the median age of Indias 1.5 billion strong population is a mere 32; a good ten years
lower than most other nations in the world. Today, India is the largest contributor to the
global workforce, its working age population surpassing 950 million. It is no surprise then
that, India has emerged to be the worlds third largest economy an achievement
underpinned, no doubt, by its unique demographic advantage, but also a prospect that would
not have translated into reality if not for the countrys pioneering reforms in university
education over the past 20 years.

Over the last two decades, India has remarkably transformed its higher education landscape.
It has created widespread access to low-cost high-quality university education for students of
all levels. With well-planned expansion and a student-centric learning-driven model of
education, India has not only bettered its enrolment numbers but has dramatically enhanced
its learning outcomes. A differentiated three-tiered university system where each tier has a
distinct strategic objective has enabled universities to build on their strengths and cater
across different categories of educational needs. Further, with the effective use of technology,
India has been able to resolve the longstanding tension between excellence and equity. India
has also undertaken large-scale reforms to better faculty-student ratios by making teaching an
attractive career path, expanding capacity for doctoral students at research universities and
delinking educational qualifications from teaching eligibility.

As a result, today, Indias 70 million student population is a force to reckon with. Among
them are potential thought leaders researchers and academics positioned at the helm of
knowledge creation. Among them are entrepreneurs and executives of the future, industryready and highly sought after. From among them emerges Indias massive workforce, the
engine of its US$13 trillion economy.

Despite these strides of progress, Indias higher education institutions are not yet the best in
the world India has fewer than 25 universities in the top 200. Yet, Indias post-secondary
education system is increasingly recognised as being the best for the world. The promise of
excellence and equity has made the Indian higher education system worthy of emulating,
certainly in the developing world that faces the same challenges as India did in the decades
prior to its higher education reforms, but less obviously in pockets of the developed world
which is under tremendous pressure to provide higher education in cost-effective ways.

However, India has emerged as a regional hub of education and attracts global learners from
all over the world. Students, faculty and employers now flock to India to learn, teach and
recruit as India dons the mantle of a higher education leader and emerges the role model for
delivering high-quality education to vast numbers at low cost.

In short, India has gone from a post-secondary education system that was nearly broken to
one that is touted to be best-in-class for the 21st century world in less than two decades, and
it is worth taking a closer look at how the country made this remarkable transformation.

The Indian higher education system has undergone rapid expansion. In less than 20 years, the
country has created additional capacity for a mammoth 40 million students. While the scale
of this expansion is remarkable in itself, what sets it apart from earlier decades of equally
aggressive expansion is a deliberate strategy and an organized design.

Indias higher education system has finally broken free of decades of colonial overhang. In
recent years, the country has undertaken massive structural and systemic changes that have
started to yield encouraging results. About 15 years ago, India consciously moved to a
differentiated academic system with a three-tiered structure comprising highly selective elite
research universities at the top, comprehensive universities and specialized institutions in the
middle, and an array of highly-accessible and high-quality colleges at the bottom. While the
first tier caters exclusively to furthering Indias intellectual capital, the other two focus on
delivering economic and social value respectively.

Top-tier research universities are centres of excellence for the creation of new knowledge, set
up with the vision to emerge as national and international leaders in research output and
intellectual property. They enrol a selective set of talented, research-oriented students to be
taught by stellar faculty. Faculty and students at the university attract handsome research
grants and exhibit the greatest international diversity. Going beyond traditional scientific and
applied research, these universities have phenomenally broadened the scope of Indias
research capabilities to new interdisciplinary areas of scholarship that present the greatest
opportunity for the creation of new knowledge and hold most relevance for India in the new
world. For example, Indian universities are at the forefront of research in bioscience,
environment and climate change, inclusive development and leadership. Leveraging their cost
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and competitive advantage, Indian research universities have pioneered the model of blended
research where they collaboratively produce cutting-edge research with other top-rung
universities around the world. Further, despite directly educating only a small group of elite
students, these universities have emerged as the indirect wellspring of content and curriculum
for millions of other students who have seamless access to high-quality content from these
universities through the Massive Open Online Courses (MOOCs) model.

The second tier of industry-aligned professional education institutions has seen the greatest
growth over the last two decades. Focused on quality teaching and producing highly
employable graduates, these institutions are a passport to white-collar jobs in a knowledge
economy. They impart knowledge and technical know-how on the one hand and broad-based
critical thinking and problem-solving skills on the other to produce well-rounded industry
leaders. Student learning outcomes are centre stage to this model. The liberal component in
this model of education is designed to correct for traditionally strict disciplinary boundaries,
rigid departmental silos and narrow specialisations once characteristic of Indian higher
education. In effect, when a civil engineer educated thus sets out to build a bridge he would
not only approach it from an engineering angle, but would also assess the environmental
impact of building the bridge, the socio-economic impact of improved infrastructure, the
financing of the bridge and possibly all the related regulatory hurdles to be overcome to get
the plans approved. The curricular focus in these institutions is on content delivery than on
content creation, where faculty borrow from the best open courseware and customise it to the
needs of their students. While a section of the faculty are academic researchers, these
universities also draw faculty from experienced practitioners and industry professionals who
are subject matter experts and can act as mentors to students in the early stages of their
professional careers.
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The last cluster of broad-based highly-accessible universities is designed to expand the reach
of higher education to all eligible and deserving students in the country. They offer a wide
range of courses aimed at providing a holistic education to Indias masses, and play a major
role in promoting equity and access. Their distinguishing characteristic is a varied student
population with significant regional and linguistic diversity and a balanced gender profile.
They rely heavily on online methods of teaching and learning, enrol a sizeable number of
mature students and offer both part- time and full-time options.

Lastly, planned expansion has also helped solve for the problem of infrastructure and
resources. Riding the wave of urban planning, India earmarked tracts of land in
many tier-II cities to create education cities which have today emerged to be
thriving inner-city university campuses tightly integrated with their host cities. Unlike
the erstwhile ideal of a mono-functional and isolated Greenfield campus removed
from the city, providing academics and students the distance to reflect on humanity,
these campuses are located in the heart of the city, with several universities
collocating on a single campus. They share a close relationship with the host city and
are embedded in knowledge ecosystems enabling them to perform better
An Indian student in 2013 was a passive player on a predefined education pathway. The
curriculum was predesigned and worse still, outdated and seldom relevant, and the dominant
mode of instruction was information-loaded, one-way lectures from the teacher to the student.
If one were to describe the transformation in higher education pedagogy from then to now,
dramatic would be an understatement. In todays classrooms, the student is an active
participant in the education process and the role of a professor is that of a facilitator as
opposed to an instructor. The instruction is designed to engage students in learning
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experiences that not only enable them to learn content but also to develop greater passion for
learning enabling them to learn to learn and to be lifelong learners.

In the learner-centred paradigm of education, students are encouraged to take greater


responsibility for their learning outcomes. The professor ceases to be the fount of knowledge
filling the empty receptacles of students minds; instead, students actively participate in the
discovery of knowledge. They are encouraged to be reflexive and thoughtful learners,
learning from themselves, their peers and their immediate environment just as much as they
would from their professors. Accordingly, the teaching-learning methodology involves less
lecturing and rote note- taking and more hands-on activities to allow for experiential and
interactive learning.

Over the years, such emphasis on learning has impacted students and learning outcomes in
ways that have far- reaching impact for Indian economy and society. Firstly, by stoking
students innate curiosity and encouraging them to learn in self-directed ways, it has enabled
Indian graduates to be independent, critical thinkers. As a result, it has greatly enhanced the
countrys innovation capability and entrepreneurial ambition, positioning it amongst the most
attractive R&D hubs for dozens of multinationals. Secondly, the learner-centred paradigm has
helped Indias thriving human resource base to keep pace with the changing needs of their
work environments. Over the years, with evolution of the knowledge economy, learning
and work have become inseparable, making constant on-the-job learning and up-gradation
indispensable. Trained to be active and adaptive lifelong learners, the Indian workforce is
known to be dynamic and agile even in the face of disruptive progress.

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Lastly, but importantly, the learner-centered approach has helped correct for the problem of
equity in Indian higher education. As Indias enrolment numbers grow, and access to higher
education expands, the learner-oriented method has helped sensitize educators to difference
in learning styles and student expectations that result from diversity in student backgrounds.
By placing the student at the centre of the learning process, the approach on the one hand has
enabled institutions to devise new and innovative ways to reach diverse learners, and on the
other, helped students discover and exercise their distinctive learning styles to chart an
educational pathway that is personally meaningful and relevant.
The Indian Higher education today boasts of being the second largest higher education
system in the world with over 692 Universities, 46,430 colleges and 25.9 million students.
The country has witnessed a very high growth rate with student enrolment increasing at a
CAGR of 10.8% and institutions at a CAGR of 9% in the last decade. This major upsurge has
largely been due to enhanced private sector participation coupled with the Governments
thrust on expansion of higher education of the country in the 11th five year plan. The private
sector now accounts for 64% of the total number of institutions and 59% of the enrolment in
the country as compared to 43 % and 33% respectively about a decade ago. While India has
shown impressive growth in adding numbers of higher education institutions and student
enrolment, the death of quality institutions in higher education still persists. It is ironic that
not a single Indian University figures in the top 200 list of any of the premier ranking
agencies, viz Times Higher Education, Shanghai Jiao Tong University Ranking and QS Asia.
Hence, although India is doing well in terms of expansion, quality of higher education has
been sacrificed both in the public as well as private sector institutions and universities

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The Government intends to achieve enrolment of 35.9 million students in higher education
institutions, with a GER (Gross Enrolment Ratio) of 25.2%, by the end of the Twelfth Five
Year Plan period through the coexistence of multiple types of institutions including researchcentric, teaching and vocation-focused ones. The private sector would continue to play an
instrumental role in the achievement of these outcomes through the creation of knowledge
networks, research and innovation centres, corporate-backed institutions, and support for
faculty development. However, there are several systemic barriers that restrict entry of
credible private higher education providers contributing effectively. The pending reforms are
intended to fuel the growth further to achieve this ambitious GER.
Higher Education in India suffers from various quality deceits are improving the quality of
teaching-learning in a majority of non-elite universities and colleges, improving equity and
access, enhancing the focus on research & innovation and ensuring employability of students.
R&D expenditure is low at 0.81% of GDP compared to 1.13% in China & 2.60% in US. The
student- teacher ratio at 26 is high compared to BRICS avg. Of 16 and developed economy
average of 15.3 which further adds to the complexities. Acute Faculty shortage continues to
impact the quality of Higher Education. Currently, about 25% of Faculty positions in
Universities remain vacant while 24% of faculty in universities and 57% in colleges are
without Ph.D. degrees. Lack of appropriate Industry-academia linkages and engagements
have been identified as one of the critical reasons for the lack of quality of graduates in the
country.

The two greatest concerns of employers today are finding good workers and training them.
The difference between the skills needed on the job and those possessed by applicants,
sometimes called the skills-gap, is of real concern to human resource managers and business
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owners looking to hire com potent employees. While employers would prefer to hire people
who are trained and ready to go to work, they are usually willing to provide the specialized,
job specific training necessary for those lacking such skills.

Most discussions concerning todays workforce eventually turn to employability skills.


Finding workers who have employability or job readiness skills that help them fit into and
remain in the work environment is a real problem. Employers need reliable, responsible
workers who can solve problems and who have the social skills and attitudes to work together
with other workers. Creativity, once a trait avoided by employers who used a cookie cutter
system, is now prized among employers who are trying to create the empowered, highperformance workforce needed for competitiveness in todays marketplace. Employees with
these skills are in demand and are considered valuable human capital assets to companies.

India is facing an emergency situation in the higher education segment, according to the India
Labour Report. The issue of employability is centred on two challenges. The first one is lack
of access to education and skills, and the second is rigour in education quality standards.
Calculated investment and new technology can take care of the first issue. The second
challenge is more about quality of students which results in aspiration mismatch between
skills and job/salary expected.

The study informed that Indias 30% gross enrolment ratio objective by 2030 plans requires
solutions that combine the needs of policy makers, employers and youth. Community
colleges offering 2 year associate degree programs not normal degrees on a diet but
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vocational education on steroids combine all stakeholder needs. These colleges would end
the dead end view of vocational education by allowing those with certificates and diplomas to
convert them into associate degrees and degrees with additional study. They would expand
geographic access via multiple delivery modes (small centres, large campuses, internet/
satellite campus and apprenticeships), and place employers at the heart of curriculum,
certification and outcomes. The study explained that despite enrolment growing from 2 lakh
in 1947 to 1.6 crore in 2012, India still lags behind its international counterparts. The higher
education gross enrolment ratio of India is 11% which is merely half of the world average
and way behind developed countries (54%).

The study showed that non-availability of courses, inadequate infrastructure facilities,


inadequate financial resources, lack of flexibility and autonomy to the institutions among
others have dented efforts in improving the quality and scale of education, employability and
employment. Indias higher education challenge lies at the difficult trinity of enrolment,
access and employability. Community colleges could be an important innovation because
they are part ITI, Part College and part employment exchange.

Higher education system in India can scale up in quality and reach only by creating
competition with transparent regulation. Some of the proposed solutions include legitimizing
distance education, fostering public-private partnership models, deregulating higher
education and tweaking the skill and employment ecosystem.

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Insufficient supply of quality skills is one of the main impediments to further economic
growth in India. The Indian economy grew more than 8% on average over the past 5 years,
including the year of the unprecedented financial crisis in 2009. However, the skill
shortage is still one of the major constraints in most industries in India (World Bank,
2009b).

IT, infrastructure and power sectors where engineers play a critical role are particularly in
difficult situations when it comes to unmet demand for skills. For instance, the exporting IT
sector reported lack of skills as the most serious obstacle for growth, and salaries rose 15%
annually from 2003 to 2006 mainly due to the shortages of qualified workforce (World
Bank, 2009). The road sector also faces severe shortages of qualified manpower. The sector
needs to increase its hiring by at least 2-3 times of the 2008 level where 6,000 7,000 fresh
engineers and diploma holders joined the road sector workforce (World Bank, 2008).

In the power sector, the focus is also on shortages of qualified engineers. The sector needs
more skills and knowledge at all levels of the workforce, particularly considering the
growing concerns over environmental degradation and depletion of conventional energy
sources (Ministry of Power, 2007). According to the widely quoted report by the National
Association of Software and Services Companies (NASSCOM) and McKinsey in 2005, only
25% of the engineering education graduates are employable by a multinational company.
Many employers give concrete examples on the lack of skills of the newly graduated hires,
which the employers link to shortcomings in the education system. Box 1 provides one such
case from a large ITES company.

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Despite the gravity of the situation, little research has been conducted to identify the kinds
of skills demanded by employers and measure in which skills graduates meet employers
expectation. There is an increasing demand for such information from teachers,
administrators, and policy makers. For example, Government of India is implementing a
program with World Bank co-finance, to improve quality of engineering education and
increase learning outcomes of engineering education graduates. For this program and for
other initiatives, it is critical to identify specific bottlenecks in skills demanded by
employers, and provide detailed information and practical suggestions to overcome the
skill shortages.

Soft skills are learned behaviours which require training and focussed application. Soft skills
will enable students with a strong conceptual and practical framework to build, develop and
manage teams. They play an important role in the development of the students overall
personality, thereby enhancing their career prospects. Training in soft skills provides strong
practical orientation to the students and help them in building and improving their skills in
communication, the effective use of English, business correspondence, presentations, teambuilding, leadership, time management, group discussions, interviews and interpersonal
skills. It also helps students in career visioning and planning, effective resume writing and
dealing with placement consultants and head hunters.

In an age when relationships between individuals and organizations are getting more and
more complex, it is not enough to only have an excellent IQ. Being good at number
crunching and scoring high marks in subjects are not the only criteria for success in
professional or personal life. The ability to deal with one's feelings and understand the
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feelings of others in any given situation helps one to complement academic intelligence/
cognitive capacities (IQ) with a humane understanding of issues. This ability is known as
Emotional Intelligence or Soft Skills.

Companies are looking for candidates who are smart and can present themselves well. Soft
Skills training has become a must for the students who want to go for job or higher studies.
Soft skill is not a visible skill like the domain subject content in a student but it helps in
improving the personality of the person. It gives finishing touch to the personality. It
includes communication skills, interpersonal skills, group dynamics, team work, body
language, etiquettes, selling skills, presentation skills, confidence building etc. Soft skills
along with grammar, pronunciation and vocabulary exercises will boost the confidence of
students.

Students are not able to catch up with the pace of employment opportunity as they lack
employability skills or soft skills. Hard skills are technical skills whereas soft skills are at the
surface providing finishing touches for success. The blend of both skills is essential for
personal, professional and social success. The significance and relevance of soft skills equip
the students with adequate ammunition to face corporate battles and challenges. Soft skills
are required at each of the three levels of interaction such as (i) with self, (ii) the internal
business environment and (iii) the external environment.

Soft skills help in improving human potential. Soft skills for students increase their comfort
level. It is the acronym for situational awareness, presence, authenticity, clarity and
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empathy. Team debates, team presentations and self-reflections are essential for developing
soft skills. Soft skills play a crucial role in making students employable as it enables them to
be flexible, positive to change, handle ever-increasing expectations of employers and to stay
globally competitive.

The emergence of a worldw ide economic order has immense consequences for higher
education more so under the changes that have taken place in the recent past with regard to
globalization, industrialization, information technology advancement and its impact on
education aided to these are the policy changes that have taken place at the UGC, AICTE,
DEC, NCTE, Medical Council, BOR Council, Architecture Council and such other
regulatory bodies from time to time to accommodate these development and yet maintain
quality students in higher education. The landscape in general, has changed towards a
new order. It is obvious Centre and state governments and that the institutions and
academic and non academic staff need to gear themselves to deal with the challenges
posed by those to achieve the slated, and this demands review of beaten track, set notions,
comfort, attitudes and work styles. It is time for all those who are concerned with
policymaking, planning, administration and implementation of Higher educations to
revitalize the very thinking on the subject and put it on the right track.

Education in India has always been valued more than mere considering it as a means
towards earning a good living. Right from pre-historic days, Education, especially higher
education has been given a predominant position in the Indian society. Ancient India
considered knowledge as the third eye that gives insight into all affairs. Education was
available in Gurukulas, Agrahars, Viharas and Madarasas, throughout the country. The
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great universities flourished in India when most of the western world was groping in the
dark.

The impact of colonial rule on India has or made the education system less innovative,
non-creative and least original. Had the colonial rulers built their education on this great
tradition by introducing modern science and technology into the curriculum, perhaps,
Indian education system would have topped on the world map. Although the
establishment of the universities resulted in rapid expansion of college education and the
products of the new learning displayed keen scholarship, the value of learning started
decaying.

The Way Forward


From its very shape of the education and education system present today in India, it is
evident that there is a very serious effort required in terms of creating new channels of
education, developing a standard delivery system of education, generating funds to support
the universalisation of primary education and other levels, increasing the vocational
training at all levels to create able manpower in the society, streamlining the technical and
higher education towards quality offering, modelling standards at all levels for public
private partnership, building research oriented institutions and bridging the academic and
economy gap.

Some of the issues which are recognized to be of great concern and require immediate
attention with reference to the changing social structure, economic growth, opening up to
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borderless economy and increased attention towards the public policy system and private
partnership, need to be addressed.

There is a realization that driven mainly by the private sector, the higher education system
in India has grown fast over the last two decades; however this expansion has been
chaotic and unplanned. From an elite system of higher education, it is moving towards
mass system of higher education. Expansion of enrolment without adequate public
financing and emergence of the private de facto for-profit providers of higher education
has changed the relationship between the higher education institutions and the government
and its regulatory arms. The drive to make higher education socially inclusive has led to
a sudden and dramatic increase in numbers without a proportionate increase in material
and intellectual resources.

There are many basic problems facing higher education in India today. These include
inadequate infrastructure and facilities, large vacancies in faculty positions and poor
faculty thereof, outmoded teaching methods, declining research standards, unmotivated
students, overcrowded classrooms and widespread geographic, income, gender, and ethnic
imbalances. Apart from concerns relating to deteriorating standards, there is reported
exploitation of students by many private providers. Ensuring equitable access to quality
higher education for students coming from poor families is a major challenge. Students
from poor background are put to further disadvantage since they are not academically
prepared to crack highly competitive entrance examinations that have bias towards urban
elite and rich students having access to private tuitions and coaching. Education in basic
sciences and subjects that are not market friendly has suffered.
23

Research in higher education institutions is at its lowest ebb. There is an inadequate and
diminishing financial support for higher education from the government and from society.
Many colleges established in rural areas are non-viable, are under-enrolled and have
extremely poor infrastructure and facilities with just a few teachers. A series of judicial
interventions over the last two decades and knee-jerk reaction of the government both
at the centre and state level and the regulatory bodies without proper understanding of the
emerging market structure of higher education in India has further added confusion to
the higher education landscape in the country. There is an absence of a well-informed
reform agenda for higher education in the country. A few efforts made now and then are
not rooted in the new global realties based on competition and increased mobility of
students and workforce.

There are significant differences in their mandate, powers and functions. The councils have
rules and regulations of their own. There is large overlap of their functions with the
functions of the UGC, other professional councils and even function of universities in
some cases. In five cases, namely - Medical Council of India, Pharmacy Council of
India, All India Council for Technical Education, Indian Nursing Council and the Bar
Council of India, there are also State Councils; and there are overlaps in functions of the
national councils and state councils.

Today in this scenario there is very little of clearly defined policy for promoting and
regulating institutions and especially the private initiatives. Whatever policies exist,
they are of ad-hoc nature prescribed by either the central regulatory bodies and /or by
the various states and UTs. Often because of inconsistencies, ambiguities, and vagueness
24

-especially in the light of different legal mandates of these agencies and the concurrent
status of higher education-there have been a plethora of legal battles resulting in enormous
expenditure to the governments and the institutions (M. Anandakrishnan, Policy
Orientation for Private Initiatives in Hr education: Issues and Options, 2003)

It can also be thought that all that is required to ensure quality across the board is to have a
national level overseeing body that is teethed with powers to grant permission to establish a
university and to derecognize an already established university if it fails to maintain the
prescribed standards. It is also essential that the functioning of such a central authority is
transparent and its decision are nor arbitrary. To ensure such transparent governance
authority should prescribe its parameters for granting permission to establish an
Institution/university.

Similarly it should also make it known to the participating

agencies as to on what lines the performance of a university is assessed to declare it as


eligible for its continuation or not.

In India, at least, the spending per student has been going down over the years. The share
of education in our five-year plan outlay has been falling. The first five-year plan gave
education 7.86 per cent. By the fifth plan, the share of education was only 3.27 per cent
of the outlay. Even if you take both central and state government spending together,
it does not get better. Current spending on education in India is not more than 3.5 per
cent of GDP. The Centre itself concedes that the minimum should be 6 per cent. Again,
out of the amount spent, very less is being envisaged to be spent on higher education. Its
not even 3-4% of GDP. This compares unfavourably with the international reference level,
especially with countries such as South Africa, which invests 8 per cent of GNP on
25

education. A near doubling of investments in education is the soundest policy for


increasing the countrys GDP per capita by many fold. Therefore there is a need to evolve
policy through which Private/non-governmental resources is mobilized. Now there is a
question as to how to build self-sustaining models of institutions critical for autonomy
and long term viability and student-support.

Higher education should be based on merit and desire and not economic, social or
influential forces. Sate with the help of private sector, should take primary responsibility
of financing higher education, as fees will not be able to play a central role in the higher
education economics. The concept of earning while learning or exchange of labour or
skills for education needs to be promoted. Acquiring of multiple degrees and diplomas
simultaneously has to be encouraged and the standards of evaluation have to be
strengthened. Disparities

and discrimination

of age, gender, and socio-economic

background need to be tackled.

Technical education, both vocational and professional, constitutes the foundation for
development of science and technology, and business. India is rightly proud of the
international standing of its IITs, and IIMs, but a handful of world-class technical
institutions are not sufficient. A large number of the countrys engineering colleges,
medical colleges, business schools, other science and technology institutions need to be
created and upgraded to quality standards and given the required autonomy.

26

VOCATIONALIZATION OF EDUCATION
There is a gap between the need of the employment terminals i.e. industry and the
academic institutions. With the reducing government employment opportunities and
increasing economy-oriented employment, close links need to be fostered between
vocational institutions and user industry and also technical and professional institutions and
industry. It is important to recognize the level of involvement of the industry and thus
create interest of the industry in developing the quality, financial support, acceptance of the
produce, creation of more employment etc. The higher education systems have very
controlled way of qualifying the recognition of offering the degree or the diploma. These
systems do not allow majority of the institutions to offer quality developmental
programmes, which are needs of the economic manpower. There should be an independent
accreditation body to assess the purpose, quality and offering of the programmes for
undergraduate programmes, from one-year masters to three year of masters or even higher
education.

PUBLIC-PRIVATE

PARTNERSHIP

AND

INSTITUTION-INDUSTRY

INTERFACE
There has been some effort both by the government and the private education institutions
to develop the teaching staff at various levels. However, this needs to be intensified with
appropriate attention to all the aspects related in order to prepare quality and sufficient
number of educational staff. Such efforts need a very serious structuring for the research
base institutions.

27

It is a very popular and known fact that funding of the institutions either private or the
government, is not going to be supported by the state or central governments for long.
A public Private Partnership Model should be developed and encouraged by the
government to create a self-sustainable model of education in times to come. Looking at
the whole scenario, there is a need for interaction between universities, academic
institutions of higher learning, industry, R&D institutions and funding agencies. This could
be achieved by a synergy process wherein they will be partners in various activities,
complementing each other in reaching their visions, objectives and goals. Generally, this
is perceived as an activity for interaction but there is need to re-look in order to develop
such a process wherein there will be more than interaction. This could be achieved by
PARTNERSHIP. A few interventions needed are (i) Develop a database of facilities
available in the university, Industry and R&D institutions. (ii) Involvement of Industry in
the curriculum development and also implementation of the curriculum (iii) Faculty
exchange and participation in industry and vice-versa in university and specialized
institutions (iv) Participation of executive who have Ph.D., involve them in research and
development both in industry as well as universities (v) Industry to utilize the human
resource and infrastructure available in the universities for problem solving, testing,
certification etc. (vi) Conducting advanced programme in technical, management and other
need-based areas, tackling contemporary issues of mutually beneficial nature (vii) setting
up a business development cell on partnership and (viii) Promoting entrepreneurship in
education system

We have to be optimistic that private-public partnership and the Industry interface will take
place in the field of education at all levels, and particularly in the backward regions,
which is the need of the hour. To achieve excellence, we thus need to create a real
28

partnership between government, educators and industry Partnerships that can provide
our high- tech industries with skilled workers who meet the standards of their industry. It is
important to mobilize resources, arrest the process of declining resources, liberalise the
conditions and procedures for grant of autonomy to institutions of higher learning, adopt
new ways and means to raise funds to make the system more efficient, responsive and
accountable and encourage participation of private enterprise for creating a network of
institutions.

HIGHER EDUCATION AND STATUS OF ACADEMIC RESEARCH


If we see the number of researchers engaged in Research and Development activities as
compared to other countries we find that we have merely 119 researchers, whereas Japan
has 5287 and US has 4484 researchers per million of population. Even in absolute terms,
number of researchers in India is much smaller compared to US, China, Japan, Russia, and
Germany. Numbers of doctoral degrees awarded in all subjects are 16, 602 out of which
6774 are in Arts and 5408 in science and rest in others (professional subjects). India has a
little over 6000 doctorates in Science and engineering, compared to 9000 in China and
25000 in US. It increased rapidly from a little over 1000 in 1990 to over 9000 in
recent years in China. In comparison, there has been a modest increase in India. National
Science Foundation (NSF) - Science and Engineering Indicators 2002 shows that in
the US, about 4% of the science and engineering graduates finish their doctorates. This
figure is about 7% for Europe. In India this is not even 0.4%. Data on doctorates
particularly in science, engineering and medicine suggests that only a few institutions have
real research focus. In engineering there were merely 650 doctorates awarded in 2001-02.

29

Of these 80 percent were from just 20-top universities. In science, 65 percent of the
doctorates awarded were from the top-30 universities.
The above data paints a grim picture of the status of research in India. The performance of
university sector was quite significant in 1950s and 1960s. It has fallen significantly in
recent years. In developed countries there is a very strong relationship between UG/PG
teaching and research and students have a good exposure to eminent research scientists,
which is lacking in the Indian system. The academic institutions in India are often severely
under-resourced. These have insufficient linkages amongst themselves and with the
society at large.

Quality is a major issue in social science research as well. The approach of doctoral
research in social sciences need to be more analytical and comparative and be related to
society, policy and economy. A study conducted on Social Science Research Capacity in
South Asia 2002 showed that the share of the Indian universities in the special articles
published in the Economic and Political Weekly was only about a 25 percent. This too
was dominated by only three universities, namely - Jawaharlal Nehru University,
University of Mumbai & University of Delhi.

The sorry state of the art status of Indian research is also due to lack of adequate linkages
between universities and research labs on one hand and universities and businesses on the
other. Because of lack of finance the required infrastructure and experimental facilities for
research are scarce and whatever less exists is not being optimally utilized due to lack of
collaborative work and absence of culture of sharing of facilities. Status of doctoral

30

education is disturbing. Their numbers are not increasing to meet the growing demand
from the public sector research labs and higher education institutions. There are a small
number of university level institutions that produce a decent number of doctorates. Even
amongst them, there is a suspicion about the quality of doctoral education from at least
some that are not known to be reputed, yet contribute to a significant numbers of
doctorates.

The number of Ph.Ds. from Indian Universities should increase with proper standards.
This should be seen in the context of extremely low fraction of Ph.Ds. in India in
relation to M.Sc./B.Tech., as compared to what it is in USA, UK, Germany, Japan etc. The
emphasis for research will clearly emerge if we have Universities with only Departments
and separately Universities having affiliated colleges. Research fellowships for Ph.D.
students need to be enhanced In order to attract more students to join Ph.D. programs at
various universities and colleges, the numbers and quantum of JRF and SRF needs major
revision, especially in view of the fact that other professions provide much more
lucrative salaries and perks.

Meritorious doctoral students should be recognized through teaching assistantships with


stipends over and above the research fellowships identifying talented, meritorious students
and encouraging them through recognition is very important to attract students into
research and teaching. It will be very useful to provide teaching assistantships to the
deserving students joining Ph.D. Programs in the Universities. These students should assist
faculty members in laboratory work and/or in tutorials for a certain specified number of
hours. This will improve laboratory practical and keep meritorious students in touch with
31

teaching during their Ph.D. research programs. It would also be encouraged that young
school students should be given stipends to spend time in active laboratories and
institutions of DAE, DST, DBT, CSIR, ICAR, ICMR, Space, Defence, Public and Private
sector R&D companies and selected Universities.

Post-doctoral research culture must be promoted for improvements in R&D Unlike the
advanced countries, where a large pool of post-doctoral research fellows carries out the
bulk of high-quality research, there is a near total absence of a post-doctoral culture in
India. One way of encouraging the growth of such an environment in India would be to
give positive recognition to good post-doctoral research work in India at the time of
appointing faculty/scientists. The government should also start new institutes for education
and research in various discipline as it has started in Kolkata and Pune, and the third
planned at Chandigarh. A new institution for design and manufacturing has been set up at
Jabalpur. These are efforts in the right direction, but for a country of the size of India,
much more needs to be done.

New information and communication technologies have changed the entire development
paradigm. The new technologies offer vast opportunities for progress in all walks of life. It
offers opportunities for economic growth, improved health, better service delivery,
improved

learning,

and social and cultural

advances.

Indias information and

communication technology expenditure is not only a decent 3.8 percent of the GDP; new
technologies are highly affordable in India. This has helped in rapid increase in its usage.
Though efforts are required to improve the countrys innovative capacity, yet the efforts

32

should be to build on the existing strengths in light of new understanding of the researchinnovation-growth linkage.
After independence, there has been tremendous increase in institutions of higher learning
in all disciplines. But with the quantitative growth has it been able to attend to the core
issue of quality. Quality should embrace all its functions and activities: teaching and
academic programs, research and scholarship, staffing, students, building, facilities,
equipments, services to the community and the academic environment. Internal selfevaluation and external review, conducted openly by independent specialists, if possible
with international experts, are vital for enhancing quality. Due attention should be paid to
specific institutional, national and regional context in order to take into account the
diversity and to avoid uniformity. Quality also requires that higher education should be
characterized by its international dimensions: exchange of knowledge, interactive
networking, mobility of teachers and students and international research projects, while
taking into account the national cultural values and circumstances. To attain and sustain
national, regional or international quality, certain components are particularly relevant,
notably careful selection of staff and continuous staff development, in particular through the
promotion of appropriate programs for academic development, including teaching/learning
methodology and mobility between countries, between higher education institutions and
between higher education institutions and the world of work, as well as student mobility
within and between countries.

The regulatory environment for higher education as it exists in India today taking into
consideration the emerging market structure for higher education and peculiar nature of
higher education as a service and specific areas of concern need to be identified. In
33

absence of a detailed planning and control approach - not found useful in the experience
of many countries, a regulatory framework that takes care of market failure and facilitates
market coordination need to be considered.
The overall standards of academic research in the country are very poor. Several measures
are required to be taken to ensure that India has a respectable position in its research
performance. These measures would include increasing the level for funding academic
research in India and altering the funding mechanism, improving physical and information
infrastructure for quality research through a nationally coordinated approach, putting in
place objective measures for assessing research performance and rewarding performance
and promoting collaboration along with competition in research in India.

There is no doubt that these measures call for considerable additional financial investment.
Not only is there an overall shortage of funds, there are also several competing demands
on the slender states finances. But education is an investment in human resource
development, and all future development essentially revolves around the quality of the
human resource. While a part of the financial requirement can be met by mobilizing and
judiciously utilizing local (community) resources, a large part has to come from the state
funds. But the most important is that private education providers should be encouraged
and they should come forward to invest in education in these areas. But for that a
favourable environment has to be created. Private participation in the financing and
management of education should be encouraged also in semi-urban areas to bring about
efficiency in the system and make it more effective and relevant. The government needs
to adopt the pro-active approach.

34

With the changing scenario at a much faster pace including service sector playing vibrant
role, the system should aptly respond to dynamic flexible and innovative practices at a
matching pace. The flexibility, responsiveness, timely action would be detrimental to
market forces trying to occupy larger share in the name of innovation and become the
expertise for larger market share. Information Technology advances is a very good
example for our country whereby responsiveness could result in greater market share.

There are several other challenges that we face in higher education in India today. Prime
Minister in his remarks made in the Harvard Alumni meeting on March 25, 2006 noted
that paradoxically, our (Indian) educational system faces the conflicting threats of
anarchic growth in quantitative terms and moribund stagnation in qualitative terms. We
need a balance between populism and over-regulation; between unbridled marketization
and excessive bureaucratization. We need an educational system that is modern, liberal and
can adapt to the changing needs of a changing society, a changing economy and a
changing world. The thrust of public policy for higher education in India has to be to
address these challenges.

Although, job specific technical skills are being supplied by the professional and technical
higher education institutions; Still in case of developing general employability skills which
are required for any kind of job the questions arise, Whether the general systems of higher
education do impart employability skills as expected by the employers? Does the quality of
higher education initiated and assessed by the NAAC and other Accrediting agencies ensure
developing of these skills? The 61st round of National Sample Survey (NSS) reveals that
although jobs are growing at faster rate than the population, unemployment is also growing.
35

The report of Ministry of Labour and Employment, Government of India showed that number
of job seekers on the Live Register at the end of the year 2008 was 391.12 lakhs out of which
267.85 lakhs and 123.27 were men and women respectively. Moreover, as many as 53.16
lakhs seekers registered during 2008, whereas only 3.05 lakhs were got placement during that
year. However, industry these days are not finding employable work force and at the same
time Government is not able to provide jobs to the people.

The need for developing employability skills has been acknowledged internationally. Report
to UNESCO of the International Commission (1996) on Education for the Twenty First
Century identified four pillars of education, i.e. learning to know, learning to do, learning to
live together and learning to be which reflect the general employability skills required to deal
effectively with the job situations of the 21st century.

Every individual needs to acquire self learning and self-orienting skills to utilize every
learning opportunity throughout life. It may be towards broadening his knowledge, skills,
attitudes and capacity to adjust in complex, changing and interdependent world of work. All
the abilities and skills upon the four pillars of education are based, represent the basic, higherorder and affective employability skills. Higher education of a country stands upon these
pillars would certainly lead to the development of not only quality, but also employability
skills as whole.

36

The Indian higher education system has undergone rapid expansion because, in less than 20
years, the country has created additional capacity for a mammoth 40 million students. While
the scale of this expansion is remarkable in itself, what sets it apart from earlier decades of
equally aggressive expansion is a deliberate strategy and an organized design. Indias higher
education system has finally broken free of decades of colonial overhang. In recent years, the
country has undertaken massive structural and systemic changes that have started to yield
encouraging results.

About 15 years ago, India consciously moved to a differentiated academic system with a
three-tiered structure comprising highly selective elite research universities at the top,
comprehensive universities and specialized institutions in the middle, and an array of highlyaccessible and high-quality colleges at the bottom. While the first tier caters exclusively to
furthering Indias intellectual capital, the other two focus on delivering economic and social
value respectively. Top-tier research universities are centres of excellence for the creation of
new knowledge, set up with the vision to emerge as national and international leaders in
research output and intellectual property. They enrol a selective set of talented, researchoriented students to be taught by stellar faculty. Faculty and students at the university attract
handsome research grants and exhibit the greatest international diversity.

Going beyond traditional scientific and applied research, these universities have
phenomenally broadened the scope of Indias research capabilities to new interdisciplinary
areas of scholarship that present the greatest opportunity for the creation of new knowledge
and hold most relevance for India in the new world. For example, Indian universities are at
the forefront of research in bioscience, environment and climate change, inclusive
37

development and leadership. Leveraging their cost and competitive advantage, Indian
research universities have pioneered the model of blended research where they
collaboratively produce cutting-edge research with other top-rung universities around the
world. Further, despite directly educating only a small group of elite students, these
universities have emerged as the indirect wellspring of content and curriculum for millions of
other students who have seamless access to high-quality content from these universities
through the Massive Open Online Courses (MOOCs) model. The second tier of industryaligned professional education institutions has seen the greatest growth over the last two
decades. Focused on quality teaching and producing highly employable graduates, these
institutions are a passport to white-collar jobs in a knowledge economy. They impart
knowledge and technical know-how on the one hand and broad-based critical thinking and
problem-solving skills on the other to produce well-rounded industry leaders. Student
learning outcomes are centre stage to this model.

The liberal component in this model of education is designed to correct for traditionally
strict disciplinary boundaries, rigid departmental silos and narrow specialisations once
characteristic of Indian higher education. In effect, when a civil engineer educated thus sets
out to build a bridge he would not only approach it from an engineering angle, but would also
assess the environmental impact of building the bridge, the socio-economic impact of
improved infrastructure, the financing of the bridge and possibly all the related regulatory
hurdles to be overcome to get the plans approved. The curricular focus in these institutions is
on content delivery than on content creation, where faculty borrow from the best open
courseware and customise it to the needs of their students. While a section of the faculty are
academic researchers, these universities also draw faculty from experienced practitioners and

38

industry professionals who are subject matter experts and can act as mentors to students in
the early stages of their professional careers. (Higher Education in India: Vision 2030)
India seems to have indeed entered a golden age for higher education. Many progressive
steps taken in 12th, 13th and 14th Five Year Plans have come to fruition. The country has
emerged to be a global magnet for aspiring learners, and a role model for high-quality
affordable educational systems Today, India is the single largest provider of global talent,
with one in four graduates in the world being a product of the Indian system. India is among
top 5 countries globally in cited research output, its research capabilities boosted by annual
R&D spends totalling over USD 140 billion. India is in the fourth cycle of its research
excellence framework, with at least a 100 of Indian universities competing with the global
best 23 Indian universities are among the global top 200, going from none two decades ago.
In the last 20 years alone, 6 Indian intellectuals have been awarded the Nobel Prize across
categories. India is a regional hub for higher education, attracting global learners from all
over the world. The country has augmented its GER to 50% while also reducing disparity in
GER across states to 5 percentage points. The Indian higher education system is needs-blind,
with all eligible students receiving financial aid. Two thirds of all government spending
towards higher education is spent on individuals, including faculty and students. Indias
massive open online courses, started by several elite research universities, collectively enroll
60% of the worlds entire student population. Indian higher education institutions are
governed by the highest standards of ethics and accountability, with every single one of them
being peer-reviewed and accredited.

To sum up, the three tiers of Indian universities produce among the best-in-class knowledge
creators, problem solvers and process managers, who also display deep social, cultural and
39

ecological sensitivity, are collaborative leaders and responsible citizens. In effect, the Indian
graduate of today is not only an excellent human resource but also an admirable human
being. Even as India deserves to fully revel in its resounding success of the last two decades,
it must remember that to maintain its position of leadership in higher education, the next
twenty years call for just as much leadership, vision and commitment as did the last twenty,
and a golden vision 2050 should be Indias next aspiration!

INTERDISCIPLINARY RELEVANCE
The proposed research study is very well interdisciplinary relevance one, there are three
different subjects areas it focuses which include Human Resource Management, Education
and Sociology.

40

NEED FOR THE STUDY


The role of Higher Education Institutions of our country requires introspection. Generally an
institute of higher education is looked upon as a centre of learning or enlightenment with
primary objective of teaching-learning. The function of empowering a student for workplace
was assumed to be attained automatically through the conventional practices of teachinglearning and evaluation.

The graduates employability was largely taken for granted by higher education institutions.
However, it is alleged that the present higher education system of the country does not fulfil
the need of providing employable manpower. There is a mismatch between the existing
higher education system and employability.

The products of higher education with excellent academic results are unable to face the
interviews with self-confidence; show lacking communication skills; are not able to take part
in group discussion; are hesitant; and are poor in basic and affective skills because of which
the percentage of unemployability has increased.

Hence it is distinct that though, there is merit in the education system, however, there is no
doubt that the education needs to be made more useful and usable and to prepare young
people for employment and encourage adaptability. Hence the present study calls for the
intervention by the Private sectors and the Government to make the connection between
higher education and the jobs more efficient as a means for reducing unemployment. This is
because, above all, there is a need for the enlargement of diversity and adaptive capacity of
41

higher education and training system in India to respond to the changing economic
environment.

RESEARCH METHODOLOGY
Scientific Research relies on the application of the scientific method, a harnessing of
curiosity. Thus, this research provides scientific information and theories for the explanation
of the nature and the properties of the world around us. It makes practical applications
possible. Scientific research is funded by public authorities, charitable organizations and
private groups, including many companies. In social sciences and later in other disciplines,
both primary and secondary research methods can be applied, depending on the properties of
the subject matter and on the objectives of the research.

METHODOLOGY IN THE STUDY


Research refers to the systematic investigation of the specific problem based on the data
collected. The goal of the research process is to produce new knowledge. The analytical
based study on an evaluation of private sectors participation in government higher
educational institutions to develop employability skill of students in Tamil Nadu and
Pondicherry is an attempt with the specific objectives as spelt out already in the study.

There are many governments run higher educational institutions contributing employment
development in the states of Tamil Nadu and Pondicherry for the educated youth at higher
educational level. This particular study specifically focuses on higher educational institutions

42

having private sectors participation for the employable skill development of the students who
studies the subject of social sciences (it includes commerce, management). For the purpose of
study 07 Universities and 93 Colleges (Government and Government aided colleges- Both
Arts and Science Colleges and Engineering Colleges) were selected on a stratified random
sampling basis.

Furthermore, it obscures a hierarchal relationship between the educational academicians and


the field employers in which the basic research is more dominant and privileged. The data
collection is concerned with a structured questionnaire covering the areas of present
government initiatives on students employable skill development through private
participation, suitability of private participation models, constraints faced by private
participation Models, Comparing the Indian private participation models with International
Models in employable skill development of students of higher educational institutions, which
are used to collect the data further. With such a background, the research work is designed to
analyze and explore the private sectors participation in higher educational institutions to
develop employability skills of the students.

OBJECTIVES OF THE STUDY:


To Study the students employability skill development initiatives of government of India
through private sectors participation.
To Evaluate the present private sectors participation in higher educational institutions to
develop employability skills of the students

43

To Examine factors need to integrate to strengthen through private sector participation in


higher educational institutions in making students as employable workforce
To Find out the constraints in institutionalize private sector participation in higher education
system to develop employable workforce.
To Examine some international models of private sectors participation and its initiatives and
best practices used in higher education to develop employability skills.
To Suggest to redesign the pattern of education at the higher educational level to facilitate
skill development

TECHNIQUES USED
Percentage Analysis
Analysis of Variance (ANOVA)
Correlation Analysis
Regression Analysis
Factor Analysis

INSTRUMENTS USED
A structured questionnaire has been used for the data collection, which consists of five
sections. The first section represents the introductory part of the questionnaire which was
designed so as to obtain the biographical information of the sample in terms of the location,
type of the institutions, number of students enrolled in each department , along with the
44

number of faculty with academic experience, with industry experience and with both
academic and industrial experience.

The second section comprises of the survey instruments which was designed to capture the
data that was used to measure the initiatives taken by the department of the institutions for the
development of the skills among the students for the employability success.

The third section of the survey was designed to obtain the data regarding the respondents
opinion about the factors to strengthen the development of skills among the students of higher
educational institutions to provide the employability skills of the students. It was also
designed to determine the respondents level of satisfaction about the present initiatives taken
by the department of the institution to improve the employability skills of the students.

The fourth section comprised of the survey instruments were designed to ascertain the
constraints to institutionalize the industry participant in the skill development process of the
students.

The fifth section of the questionnaire was designed in an open ended method with an aim to
ascertain the selection status of the private sectors over the students of the educational
institutions.

45

A total of 225 questionnaires were distributed to the Arts and Science colleges, engineering
colleges, and the universities and 100 respondents duly had filled in thus making the rate of
return at roughly 60% of response. The sample target were the heads of the department of the
institutions and the administration staff of the institutions.

TABLE 1.1

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE TYPE OF INSTITUTION

Cumulative
Frequency

Percent

Valid Percent
Percent

Valid

Arts & Science College

46

46.0

46.0

46.0

Engineering College

47

47.0

47.0

93.0

University

7.0

7.0

100.0

Total

100

100.0

100.0

Table presents the distribution of respondents on the basis of the type of institutions. Further
the analysis is portrayed on the classification of the Arts and Science College, Engineering
College and the Universities.
CHART 1.1

46

The above chart depicts that out of the 100 respondents selected for the present study 46
colleges are Arts and Science Colleges, 47 colleges are engineering Colleges and 7 are
Universities.

47

TABLE 1.2

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE LOCATION OF


INSTITUTION

Cumulative
Frequency

Percent

Valid Percent
Percent

Valid

Urban

30

30.0

30.0

30.0

Semi -Urban

57

57.0

57.0

87.0

Rural

13

13.0

13.0

100.0

Total

100

100.0

100.0

Since the Location of the institution act as a factor in the Evaluation of the private sectors
participation in Higher Education Institutions to develop the employability skills of the
students, it is included in the present study.

CHART 1.2

48

RESPONDENTS ON THE BASIS OF LOCATION

The above chart depicts that the number of colleges in the urban location is 30, which
comprises of 30% of the total. 57 institutions are from the semi-urban location which has
become the important factor of the study. This comprises of 57% of the total. 13 Institutions
(13% of the total) are from the rural location.

TABLE 1.3

49

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE AVAILABLITY OF


B.COM COURSE IN THE INSTITUTION

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

46

46.0

46.0

46.0

No

54

54.0

54.0

100.0

Total

100

100.0

100.0

Availability of the B.com course in an Arts and Science college is a very important
component of the study since commerce and management students are booming up today due
to the corporate growth and culture and that it comprises of the increasing percentage
component of the higher education groups. Hence Table 1.3 shows the number of colleges
offering B.com under Graduate courses to the students community.

CHART 1.3

RESPONDENTS ON THE BASIS OF AVAILABLITY OF B.COM COURSE IN THE


INSTITUTION

50

Chart 1.3 represents that, 46 colleges out of 100 offers B.com courses to the students which
comprises of the Arts and Science Colleges only. The remaining 54 institutions comprising of
the Engineering colleges and the universities do not offer B.Com courses.

TABLE 1.4

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE ENROLLMENT OF


M.COM COURSE IN THE INSTITUTION

51

Cumulative
Frequency Percent Valid Percent
Percent

Valid

Yes

35

35.0

35.0

35.0

No

65

65.0

65.0

100.0

Total

100

100.0

100.0

Table 1.4 shows the enrolment of M.com Post Graduate courses by the students community.

CHART 1.4

RESPONDENTS ON THE BASIS OF ENROLLMENT OF M.COM COURSE IN THE


INSTITUTION

52

Chart 1.4 represents that, 35 Institutions out of 100 reports that M.com courses are enrolled
by the students which comprises of the Arts and Science Colleges, Engineering colleges and
the universities. The remaining 65 institutions report that the M.Com courses are not enrolled.

TABLE 1.5

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE ENROLLMENT OF


B.B.A COURSE IN THE INSTITUTION

53

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

35

35.0

35.0

35.0

No

65

65.0

65.0

100.0

Total

100

100.0

100.0

Table 1.5 shows the number of colleges reporting the enrolment of B.B.A under Graduate
courses by the students community.

CHART 1.5

RESPONDENTS ON THE BASIS OF THE ENROLLMENT OF B.B.A COURSE IN


THE INSTITUTION

54

Chart 1.5 represents that, 35 Institutions out of 100 reports that M.com courses are enrolled
by the students which comprises of the Arts and Science Colleges, Engineering colleges and
the universities. The remaining 65 institutions report that the B.B.A courses are not enrolled.

TABLE 1.6

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE ENROLLMENT OF


M.B.A COURSE IN THE INSTITUTION

55

Valid

Frequency

Percent

Valid Percent

Cumulative Percent

Yes

54

54.0

54.0

54.0

No

46

46.0

46.0

100.0

Total

100

100.0

100.0

Table 1.6 shows the number of institutions who had reported enrolment of M.B.A courses to
the students community.

CHART 1.6

RESPONDENTS ON THE BASIS OF ENROLLMENT OF M.B.A COURSE IN THE


INSTITUTION

56

The above Chart 1.6 represents that, 54 Institutions out of 100 have reports of M.B.A courses
being enrolled by the students which comprises of the Engineering colleges and the
universities. The remaining 46 institutions have reports of M.B.A courses not being enrolled
by the students.

57

TABLE 1.7

DISTRIBUTION OF RESPONDENTS ACCORDING TO THE ENROLLMENT


OF OTHER COURSES IN THE INSTITUTION

Cumulative
Frequency Percent Valid Percent
Percent

Valid

Comp.Sc

47

47.0

47.0

47.0

Commerce &Management

46

46.0

46.0

93.0

Others

7.0

7.0

100.0

Total

100

100.0

100.0

Other than the courses included in the study, there are other courses the institutions have
reported which are categorised together as Computer Science courses, Commerce and
management courses and other courses like Diploma courses, Medical courses , engineering
courses etc. Hence Table 1.7 shows the number of colleges where the students have enrolled
on various other courses to the students community.

CHART 1.7
58

RESPONDENTS ON THE BASIS OF ENROLLMENT OF OTHER COURSES IN


THE INSTITUTION

The above Chart 1.7 represents that, 47 Institutions out of 100 have reports of other computer
science courses being enrolled by the students .The remaining 46 institutions have reports of
other commerce and management courses being enrolled by the students and 7 institutions
have reports of other courses other than computer science and management courses like,
medicine, diploma courses etc.

59

TABLE 1.8

DISTRIBUTION OF RESPONDENTS ACCORDING TO NUMBER OF


ASSISTANT PROFESSORS IN THE TYPE OF INSTITUTIONS BASED ON
THEIR EXPERIENCE

No.Of Asst Profs

Total

<10

11-20

21-30

>30

22

13

10

46

Arts & Science


Type of

College

Institution

Engineering College

20

16

11

47

University

45

31

23

100

Total

Education not only depends upon the students, but also on the faculty and their availability.
The Government is taking enough initiatives to meet this deficiency in various ways.
Table 1.8 depicts the number of faculty belonging to the assistant professor cadre on basis of
their experiences comprising the Arts & Science College, Engineering College and the
Universities.

CHART 1.8

60

RESPONDENTS ON THE BASIS OF NUMBER OF ASSISTANT PROFESSORS IN


THE TYPE OF INSTITUTIONS

Chart 1.8 above describes the number of assistant professors employed in various types of
institutions. From the study of 100 institutions, 22, 20 and 3 assistant professors with an
experience of less than 10 years have been employed in the Arts and Science College,
Engineering College and the Universities respectively. 13, 16 and 2 assistant professors with
an experience of 11 to 20 years have been employed in the Arts and Science College,
Engineering College and the Universities respectively. With an experience between 21 to 30
years, 10 assistant professors have been employed in the Arts and Science institutions, 11
have been employed in the engineering college and 2 have been employed in the Universities.
And only 1 assistant professors with an experience of more than 30 years has been employed
in the Arts and Science institute alone.

61

TABLE 1.9

DISTRIBUTION OF RESPONDENTS ACCORDING TO NUMBER OF PROFESSORS


IN THE TYPE OF INSTITUTIONS BASED ON THEIR EXPERIENCE

No.Of Professors

Total

None

1-5

6-10

36

46

Arts & Science


Type of

College

Institution

Engineering College

33

13

47

University

71

20

100

Total

Table 1.9 depicts the number of faculty belonging to the professor cadre on basis of their
experiences comprising the Arts & Science College, Engineering College and the
Universities.

CHART 1.9

62

RESPONDENTS ON THE BASIS OF NUMBER OF PROFESSORS IN THE TYPE OF


INSTITUTIONS BASED ON THEIR EXPERIENCE

Chart 1.9 above describes the number of professors employed in various types of institutions.
Among the 100 institutions included for the study, there are 36 Arts and Science Colleges
with no professors at all, 33 Engineering colleges with no professors. 7 professors are
employed in the Arts & Science Colleges with an experience between 1 and 5 years and 3
professors are employed in the Arts & Science Colleges with an experience between 6 and 10
years. It is also observed that 33 Engineering Colleges report a negative employment of
professors. 13 professors are employed in the Engineering colleges with an experience
between 1 and 5 years and only 1 professor has been employed in Engineering College with
an experience between 6 and 10 years. Finally 5 professors are found to be employed in the
universities with the experience of 6 years and more than 6 years.

63

TABLE 1.10

DISTRIBUTION OF RESPONDENTS ACCORDING TO NUMBER OF ASSOCIATE


PROFESSORS IN THE TYPE OF INSTITUTIONS BASED ON THEIR
EXPERIENCE

No.Of Associate Profs

Total

None

1-5

6-10

27

18

46

Arts & Science


Type of

College

Institution

Engineering College

32

14

47

University

59

38

100

Total

Table 1.10 depicts the number of faculty belonging to the associate professor cadre on the
basis of their experiences comprising the Arts & Science College, Engineering College and
the Universities.

CHART 1.10

64

RESPONDENTS ON THE BASIS OF NUMBER OF ASSOCIATE PROFESSORS IN


THE TYPE OF INSTITUTIONS BASES ON THEIR EXPERIENCE

Chart 1.10 above describes the number of associate professors employed in various types of
institutions.
Among the 100 institutions included for the study, there are 27 Arts and Science Colleges
with no associate professors at all, 32 Engineering colleges with no associate professors. 18
Arts and Science institutions report availability of associate professors an experience between
1 and 5 years and 1 professors are employed in the Arts & Science Colleges with an
experience between 6 and 10 years. It is also observed that 33 Engineering Colleges report a
negative employment of professors. 13 professors are employed in the Engineering colleges
with an experience between 1 and 5 years and only 1 professor has been employed in
Engineering College with an experience between 6 and 10 years. Finally 5 professors are
found to be employed in the universities with the experience of 6 years and more than 6
years.

65

TABLE 1.11

DISTRIBUTION OF RESPONDENTS ACCORDING TO NUMBER OF GUEST


FACULTIES IN THE TYPE OF INSTITUTIONS BASED ON THEIR EXPERIENCE

No.Of Guest Faculties

Total

None

1-5

6-10

11-15

>15

18

20

46

22

16

47

10

41

39

100

Arts & Science


College

Type of

Engineering
Institution
College
University
Total

Table 1.11 depicts the number of faculty who are guest Faculty on basis of their experiences
comprising the Arts & Science College, Engineering College and the Universities.

CHART 1.11

66

RESPONDENTS ON THE BASIS OF NUMBER OF GUEST FACULTY IN THE


TYPE OF INSTITUTIONS BASED ON THEIR EXPERIENCE

Chart 1.8 above describes the number of assistant professors employed in various types of
institutions. Among the 100 institutions included for the study, there are 36 Arts and Science
Colleges with no professors at all, 33 Engineering colleges with no professors. 7 professors
are employed in the Arts & Science Colleges with an experience between 1 and 5 years and 3
professors are employed in the Arts & Science Colleges with an experience between 6 and 10
years. It is also observed that 33 Engineering Colleges report a negative employment of
professors. 13 professors are employed in the Engineering colleges with an experience
between 1 and 5 years and only 1 professor has been employed in Engineering College with
an experience between 6 and 10 years. Finally 5 professors are found to be employed in the
universities with the experience of 6 years and more than 6 years.
CHAPTER II

67

LITERATURE REVIEW
REVIEW OF RESEARCH AND DEVELOPMENT IN THE SUBJECT

68

In many countries, building a workforce with higher order skills is an important part of
improving the climate for investment, acquiring a competitive edge and generally
maintaining an engine of growth (World Development Report, 2007). Higher education
enhances earnings of the individuals and contributes to economic development and makes a
significant contribution to reduction in absolute as well as relative poverty.

More than 50 percent of our GDP is supported by service sectors and about 28 per cent is
through the manufacturing sector. The Mc Kinsey Global Institute predicts that during 2008,
about 160 million jobs in service are likely to be outsourced and hence India stands to have a
better opportunity in getting a lions share in that opportunity, since we are the global leaders
in IT and BPO outsourcing. The report also says that India needs a 2.3- million-strong IT and
BPO workforce in the next two years. The same report has also cautioned that India will
confront a potential shortage of skilled workers in IT and BPO industries.

According to an Evaluation Survey Report, the KPO sector will create 2,50,000 jobs by 2010
and for every job created in the offshore financial sector, that will result in creation of an
additional two three jobs in other sector. A report on global skills for graduates in financial
services (Business Standard, June 6, 2007) also says 58 percent of our financial service
organizations are facing difficulties in recruiting people with right set of skills. At present
only 25 per cent of our technical graduates and 10-15 percent of general graduates are
suitable for employment.
According to Dr. D. Puradeswari, Honble Minister of State for Human Resource
Development, Government of India the Government of India has given more thrust to the

69

education sector in the 11th plan by increasing the plan allocation upto 19 percent of the gross
budgetary support said in her inaugural address at the Conference on Education for
Sustainable Development organized by the Confederation on Indian Industry (CII). The
Minister said that the education system should respond to the changing needs of the
stakeholders, especially when our country should focus on quality in education- not only
infrastructure, curriculums, but also in the quality of faculty for the benefit of students.
Speaking about the issue of employability, the Minister said that the Government Industry
collaboration would help in addressing the employability issues. The Government could only
provide broad based education, and it is the private sector, which should come forward in
providing vocational skills to suit their requirements, said the Minister. She urged the private
sector to setup more skill development centers to meet industry requirements.

Nageshwar Rao (2010) highlights most of the graduates are frustrated and feel that certificate
issues after graduating does not offer employable skills and they retain unemployed. Their
employability is a big question mark and that needs to be analyzed in the right perspective.

Thilagaraj and Nattar (2010) mentioned in their study PPP models are facing challenges due
to high infrastructure cost, low returns, lack of procurement process and lack of regulatory
system. Various arrangements for providing services can be worked out under PPP. A number
of models exist. These have to be conceptualized and plotted for few years to ascertain which
one works for the county.
Nasscom-McKinsey report (2005) predicted that the Indian industry would face its biggest
challenge ever: talent shortage of 3.1 million knowledge workers, across industry by 2010.

70

This was further supported by the fact that currently, only 25% of fresh engineers and a more
10% of the fresh graduates are actually employable. The educational and skill profile of
existing workforce in India is a very poor and is primarily responsible for its low
productivity.

Knowledge has emerged as the single most potent determinant of economic and social
progress the world over. The resultant coalition of beneficiaries and the benefactors constitute
what may be regarded as the educational-industrial complex (Graff & Zilberman, 2002).

Academia- Industry Interactions are difficult to create and maintain because universities and
industry have fundamentally different cultures, the nature of the work and products of
universities and firms differ, and there are unexpected events or exogenous shocks, that can
affect the relationship (Cyert 1997).

Each needs to adapt to the others requirements and cultures. It is, hence, suggested that
universities should develop new modes of operation, institutional leadership and more
flexible institutional management (Burquel, 1997).

Sujit, B,& Praveen,A. (2004) comments that the existing industries are being expanded and
new industries are being fast established and developed. In the context of these rapid changes,
the significance of commerce education acquires new dimensions. The general features of
commerce education have undergone very few changes during the past, though the economic

71

changes have been very rapid. To suit the needs of a dynamic economy, which is undergoing
a process of rapid transformation and development; corresponding changes in the structure of
business education are essential.

Marginson (2010) rightly remarked that though India talks about knowledge economy, it
underperforms relative to its reputation as an emerging economic giant. India is yet to
develop a coherent national strategy and has weak national-level coordination. With 32 per
cent population in the age group of 014 years, the country is likely to see a rise in demand
for higher education. Thus there is enormous scope to provide a larger pool of productive
labour to generate national wealth. The challenge however is one of creating capacity for
quality education to make that expansion relevant in the domestic economy and achieve
excellence in the global arena.

The quality of education in India, in general with regard to school as well as higher
education, by any measure is poor as indicated by various studies. The quality of education
imparted in the private schools is hardly better. With regard to higher education, the
employability of the graduates is low as claimed by some studies (NASSCOMMcKinsey
Report 2005).

Higher education plays a vital role in the socio-economic development of a country. The
report of the World Bank (1994) referred, Higher education is of paramount importance for
economic and social development. Institutions of higher education have the main
responsibility for equipping individuals with the advance knowledge and skills required for
72

positions of responsibility in government, business and professions. It is universal


appreciation that higher education provides a wide range of increasingly sophisticated and
every changing variety of trained manpower needed in education, engineering, medicine, and
private administration and services, social work, etc.

Some of the leading papers of Industry driven education in particular and reviewed
hereunder: Das Gupta,A. (1968) observed that the universities, which started business
education through a specially developed discipline known as Commerce has not succeeded
very much in brining about the understanding between the two worlds (business and
university).

Kurkoti, D.S.(1972) comments that the existing industries are being expanded and new
industries are being fast established and developed. In the context of these rapid changes, the
significance of commerce education acquires new dimensions. The general features of
commerce education have undergone very few changes during the past, though the economic
changes have been very rapid. To suit the needs of a dynamic economy, Which is undergong
a process of rapid transformation and development, corresponding changes in the structure of
business education are essential.

Madhuri Shah (1979) views that the future of industry depends upon the availability of
highly trained graduates not only for its day-to-day working but for innovative approaches on
which the growth of industry finally depends. There must be planned and organized efforts to
brig about a closer contact with these two faces (the University and Industry).
73

Nanjundappa, D.M.(1981) remarks that improving the skills and capabilities as related to
the requirements of the society is the task of universities. Skills, which are more in demand
should be provided at such institutes.

Krishnaswamy, O.R. (1990) is of the view that the commerce syllabi have to be in
consonance with the needs of practice and theoretical analysis of business systems. Further,
an astute understanding of the environment in which business operates is also called for. The
subject areas that would have to be assigned larger weight age would be those which aid in
decision making and planning, enable design and use of information systems, provide the
techniques of control, promote a better understanding of the complex human and other
aspects of business functioning, build up better quantitative tools and analysis and expose
research areas of a multi-dimensional import.

Rami Reddy, G. (1993) emphasizes that one of the serious complaints in India has been that
the higher education sector and the industrial sector have worked in isolation from each other.
This isolation has to end and the two sectors need to come together in their own interest and
in the interest of the nation.

Desai Armaity (1993) opines that relevance in education does not come by sitting in our
libraries and classrooms alone. It comes through such live interaction in the field face to face
with our social realities and confronted by the challenges they uphold to test the parameters
of academic knowledge.
74

The Karnataka Universities Review Commission (1993) under the Chairmanship of Dr.
Navaneeth Rao obsereves: The University can no longer remain passive of the happenings
taking place around it. An active participation of available experts at the university level in
solving the problems of industrial development is urgently needed.

Eresi, K. (1994) acknowledges that We are congnizant of the fact that our products are
seldom absorbed by business/industry for the post of accountants, because they are convinced
that the students lack practical knowledge of business accounting We often hear from
industry/business that our students are weak in communication both oral and written. In order
to make our courses practical oriented, we should have forward and backward linkages with
industry/business. Every institution imparting business education should have a sort of MOU
with industry/business houses to undertake development of various skills in handling real
business situation.

Swaminathan D. (1995) opines the Interaction and interdependence are the well-recognized
concepts in the present day global situation. Universities are no exceptions to this. They
should come out from their ivory tower concepts and interact with the outside world.
Knowledge has emerged as the single most potent determinant of economic and social
progress the world over. The resultant coalition of beneficiaries and benefactors constitute
what may be regarded as the educational industrial complex (Craff & ziberman, 2002).

75

Universities and enterprise are very different institutions from one another, operating with
different time schedules, agendas, actors, and with different mission and objectives. Each
needs to adapt to the others requirements and cultures. It is, hence, suggested that
universities should develop new modes of operation, institutional leadership and more
flexible institutional management (Burques, 1997).

The High powered Committee on Restructuring of Commerce and Management Courses in


Karnataka (1999), under the chairmanship of Dr. K. Eresi reflects that the basic problem
with commerce education as perceived by the employers, relates to the wide hiatus that exists
between the principles learnt in the class rooms, and what is practiced in business
establishments. The Committee has made a commendable job of prescribing relevant
courses, evolving suitable course-contents, linking these contents with the grass root realities
of the Industry and recommending the practical for each chapter in each subject. Designing
industry driven commerce education would, therefore, be undoubtedly and answer for a
hiatus, as noticed by the High Powered Committee.

76

CHAPTER -III

RESULTS AND DISCUSSION


77

CHAPTER 3.1

GOVERNMENT INITIATIVES ON SKILL DEVELOPMENT THROUGH


INDUSTRY PARTICIPATION IN HIGHER EDUCATIONAL INSTITUTIONS.

Employment is about getting a Job. Whereas, Employability is about having an effective mix
of skills, attributes, and attitudes to function successfully in the required roles. Employability
is taught and developed at module level. Employability hinges on the knowledge and
technical skills. Employment opportunities are growing in the private sector and this sector
employs those who possess knowledge and skills required by it. With the increasing number
of multinational corporations entering the Indian Industrial scene, the skill requirement of the
industrial sector has changed significantly. Therefore developing skills among the students
community has become an essential component of todays education and society. The term,
skill, is a multidimensional concept, as most jobs require a combination of skills for adequate
performance - a combination of physical abilities, cognitive abilities and interpersonal skills.
The term Development refers to the process of transition of an employee from a lower level
of ability, skill and knowledge to that of a higher level. It is an inclusive long term process
where both the employers and employees are involved and is aimed at the overall personality
growth and development of employees. This not only makes employees competent but more
importantly, it makes them good men and women in the society. The Institutions of Higher
Education and The Business Enterprises are considered to be the key leaders towards
imbibing the required skills and qualities in the youth. The Prime Minister's National Council
on Skill Development has endorsed a vision to create 500 million skilled people by 2022.

78

Illustratively, the sectors that would drive a significant portion of the employment by 2022
are mentioned in the following figure:

Chart 2.1
ILLUSTRATIVE HUMAN RESOURCE REQUIREMENTS ACROSS SELECT
SECTORS TILL 2022

Source: National Skill Development Corporation (NSDC)

Employment Market and Employability of Indian Students:

79

More than 25% of worlds workers are Indians (Kishore, 2009) and Nasscom-McKinsey
report (2005) predicted that the Indian industry would face its biggest challenge ever: talent
shortage of 3.1 million knowledge workers, across industry by 2010. This was further
supported by the fact that currently, only 25% of fresh engineers and a more 10% of the fresh
graduates are actually employable. The educational and skill profile of existing workforce in
India is a very poor and is primarily responsible for its low productivity. Though enrolments
in academic institution are high in numbers, more than 90% in primary classes, around 60%
in upper primary classes, more than 30% in higher secondary and above 10% in higher
education, the percentage of people having marketable skills is woefully low (Agarwal 2007).
As per the National Sample Survey on employment and unemployment (1993-94), only
10.1% of male workers and 6.3% of female workers possessed specific marketable skills and
the percentage were marginally higher in urban areas. The number of unemployed persons in
India steadily increased from around 7.78% million in 1983 to 10.6 million in 2000 placing
the unemployment rate at around 2.8%. there is also evidence to suggest that persons with
technical qualification have the highest unemployment rate suggesting mismatch between
the labour market requirement and the training provided (Agarwal, 2007). Therefore, it is not
surprising that the unemployment rate of graduates at 17.2% is significantly higher than the
overall rate of unemployment in the country.

Nearly 40% of the graduates are not

productively employed. Of the total unemployed population of 44.5 million, unemployed


graduates are 4.8 million (Census of India, 2001) Ghose (2004) pointed out the fact that the
young people with some education would not want to engage in low-productivity, low
income work in the informal sector. They want non-manual work, preferable in the organized
sector.

80

A skill gap indicates a disparity between the current skill level of the workforce and the
skills required by employers to meet the organizations objectives (Campbell, 2002).
According to the confederation of Indian Industry (CII) and The Boston Consulting Group
(BCG) (Saleem and Gawali 2011) pointed out in a recent report, the mismatch between
educational standard and suitability for employment will result in a talent gap of 5 million
by 2014 and a shortfall of 7,50,000 skilled workers in the next 5 years. This clearly shows
that the gap between the demand and supply of skilled workforce has widened over the years.
These challenges though has to be met by the government, it is well evident that the same
cannot be faced alone by the government initiatives. Hence, PPP (Public and Private
Partnership) should creatively draw to meet this demand. Government in association with the
private sector has been taking various initiatives on its own and in collaboration with the
private and international entities, to upgrade skill level through higher educational institutions
by providing in-house training facilities and also to provide training through industry to make
the students employable. Many large corporations like Larsen & Toubro, Bharti Group, Hero
Group, Maruti, ITC, Infrastructure Leasing & Finance Services Ltd. Etc., have established
training facilities with higher educational institute to offer world class training programs that
create an environment of e-learning and innovation.

81

Table 2.1
GOVERNMENT INITIATIVES ON SKILL DEVELOPMENT IN HIGHER
EDUCATIONAL INSTITUTIONS

Arunachal Pradesh

Assam

Bihar

14

21

Chhatisgarh

Delhi

Goa
Gujarat

Others

University
Private Deemed

Government

Deemed University

Established
Legislature Act

University
State Private

Institution
Under State

University

Andhra Pradesh

Chandigarh

31

State Open

National

University
State Public

STATES

Institution of

Central Open

Central University

University

STATE & TYPE WISE NUMBER OF UNIVERSITIES

Grand Total

9
1

47

20

17
9

25
2

10

82

37

Haryana

10

Himachal Pradesh

11

Jharkhand

Karnataka

23

Kerala

11

Madhya Pradesh

16

Maharashtra

18

Manipur

Meghalaya

10

Mizoram

Nagaland

Odisha

Puducherry

Punjab

Rajasthan

14

Sikkim

Tamil Nadu

Tripura

Uttar Pradesh

21

18

Uttrakhand

West Bengal

19

All India

42

59

284

13

Jammu

22
18

and
1

11

Kashmir

12

11

43

2
7

17

3
7

1
14

33
44
3

12

4
1

19

19

19

45

4
23

28

59

105

3
1

58

20

26

39

91

642

In UTs of Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu and Lakshadweep,
there are no Universities.

83

The above table depicts the list of the universities state wise based on their type in India.
Though Indian education is vested upon with the above list of Universities - a wide source of
skill leading to employability, still the employability of graduates varies in various functional
roles where a significant proportion of graduates of nearly 47%, are found not employable in
any sector because of their insufficient English language and cognitive skills. Since a
graduation degree is considered a pathway to a job in the knowledge economy, substantive
intervention at school and college level is needed to improve basic skills of students.
Moreover, a renewed focus on vocational training is timely now and should be reemphasized. Employability varies from role to role based on varying degrees of proficiency
required in language and cognitive skills. India stirs up out nearly thousands of graduates
each year but less than half of them are "employable" or possess the basic skills necessary for
any industry role, says a report.(Aspiring Minds). According to a report by Aspiring Minds,
an employability solutions company, around 47 percent graduates in India are unemployable
for any job. The report, which is claimed to be the first ever national audit of employability of
3-year Bachelor's degree graduates, drew inferences from data of over 60,000 graduates panIndia, based on Aspiring Minds Computer Adaptive Test (AMCAT). The co-founder and CTO
of Aspiring minds Mr. Varun Aggarwal has also stated that the alarming statistics of nearly
half of the country's graduates not being employable in the knowledge economy and hence
this needs great attention with interventions at both the school and higher education levels.
These quoted issues cannot be resolved single-handedly by the Academia. The Government
has to necessarily take the required steps to help out the Academia to foster skills among the
students and further develop the employability status.

HIGHER EDUCATION INSTITUTIONS (UNIVERSITIES AND COLLEGES) IN


INDIA
84

At present, the main constituents of University/University-level Institutions are: - Central


Universities, State Universities, Deemed-to-be Universities and University-level institutions.
These are described as follows:
Table 2.2
Type of
Description

Number

Example

Institution
Central

A university established or incorporated by a

Universities

Central Act.

Pondicherry
44
University

(Public)
State

A university established or incorporated by a

Universities

Provincial Act or by a State Act.

Madras
306
University

(Public)
A university established through a State/Central Act
by a sponsoring body viz. A Society registered
State

under the Societies Registration Act 1860, or any

Universities

other corresponding law for the time being in force 154

(Private)

in a State or a Public Trust or a Company registered

VIT
University

under Section 25 of the Companies Act, 1956.

Deemed

An Institution Deemed to be University, commonly 129

Tata

Universities

known as Deemed University, refers to a high-

Institute of

(Private

or performing institution, which has been so declared

Public)

by Central Government under Section 3 of the


85

Social

University Grants Commission (UGC) Act, 1956.


Sciences

Institution of An Institution established by Act of Parliament and


Indian
National

declared as Institution of National Importance.


67

Institute of

Importance
Technology
(Public)
Total Degree- An Institution established or incorporated by a State
Legislature Act.

granting

700

Institutions
Affiliated

An institution affiliated to the state and central

Colleges

universities
35,539

(Public

or

Private)
Source: UGC

OUTLOOK ON DEMAND AND SUPPLY OF EDUCATED YOUTHS


According to Indian Council for Research and International Economic Relations (ICRIER),
in 1950 India had 2,63,000 students enrolled in 750 colleges, which were affiliated with 30
universities. By 2005, the number had grown dramatically 11 million students in 17,000
colleges affiliated with 230 Universities. Another 10 million students were enrolled in 6,500
vocational institutions.

Despite this phenomenal growth, India would have to nearly

quadruple existing college seats and more than quadruple the number of professors to a to
achieve the 20% Gross Enrolment Rate (GER) by 2014, cited in the Venture Intelligence
86

report 2010. Another measures of Indias demand for higher learning is the number of Indian
students studying abroad. The total cost of this endeavour is US $ 3.9 billion and as on
November 2009, more than 100000 Indian students studying in US which is far greater than
any other foreign country (Dukkipati, 2010). The rate of unemployment among youth is quite
larger than overall national unemployment rate, which is actually a common trend for most of
the nations in the world, developed and developing countries alike. The alarming trend in
India however is the higher unemployment rate among high educated youth and young
people in urban areas. An employment potential study by CII for 36 sectors prospects that an
additional 2.5 million jobs would be created in an automotive sector, while the financial
sector could employ another 1.1 million people. The construction industry could employ 9.9
million more people, whereas the defense equipments sector sees the possibility of generating
only 1,60,000 jobs. Employment potential in banking and financial services is 1.1 million
jobs. Other important sectors where high employment is possible are oil and gas 2.3 million,
gems and jewellery 3.16 million, healthcare 6.1 million, horticulture 2.6 million, khadi 1.9
million, media and entertainment 1.0 million, retail 9 million. With this above supply and
demand mismatch if the educational institutions in higher learning focus on making people
employable so that the existing demand supply mismatch can be rectified. Employability is
often referred to as the acquisition of skills, which allows a person to remain employable.

GOVERNMENTS INITIATIVES TOWARDS SKILL DEVELOPMENT:


Indias current higher education system is a bottleneck, as 1 million people are expected to
join the labour force every month for the next twenty years without adequate training. 80% of
Indias higher education system of 2030 is yet to be built and needs breaking the difficult
trinity of cost, quality and scale. It needs massive innovation, investment, deregulation and
87

competition. To become a prosperous global economy within first five ranks, a qualitative
strengthening of our education, especially higher and management education is required.

The employment in the manufacturing and services sector would be in excess of 250 million
persons in a near future. While the school education sector is about 227 million in enrolment,
the combined enrolment in higher education and vocational training is about 15.3 million.
(NSDC). Various steps are being taken by the Government such as, the formulation of the
National Skills Development Policy, delivery of Modular Employable Schemes, up gradation
of existing institutions through World Bank and Government of India funding, as well as up
gradation of training institutes under Public Private Partnership mode, setting up of the
National Skill Development Corporation (NSDC), and the plan to establish 50,000 Skill
Development Centers. Apart from these, several ministries /departments and state
governments are engaged in skill development initiatives.

Education, including all aspects higher education and college education falls under the
Ministry of Human Resource Development. The University and Higher Education arm is
responsible for all college education (Arts, Science, Commerce, etc.), while engineering
education, polytechnics, etc., fall under the category of Technical Education. The University
Grants Commission (UGC) provides funds in the form of grants and also coordinates as well
as sets standards for teaching, examination and research in universities. The All India Council
for Technical Education (AICTE) is the regulatory body for Technical Education in India. Its
objectives are: promotion of quality in technical education, planning and coordinated
development of technical education system, regulation and maintenance of norms and
standards. A large part of the current vocational training infrastructure, the Government ITIs
88

and Private ITCs, falls under the Ministry of Labour and Employments Directorate General
of Employment and Training (DGET). The National Council on Vocation Training (NCVT)
plays a key role in the formation of training curriculum, policies, standards, as well as in
certification by means of the trade test. The National Skill Development Corporation
(NSDC) has been set up under Public-Private-Partnership (PPP) mode as a Section-25
Company under the Ministry of Finance to provide viability gap funding and coordinate
private sector initiatives. The Prime Ministers National Council on Skill Development has
been formulated to coordinate action on skill development.
Chart 2.2
SKILL DEVELOPMENT INITIATIVES BY THE GOVERNMENT OF INDIA

89

ROLE OF INDUSTRIES IN ASSOCIATION WITH GOVERNMENT IN SKILL


DEVELOPMENT PROGRAMME:
The Industries have been taking various initiatives on its own and in collaboration with the
government and international entities, to upgrade in-house training facilities and also to
provide training to potential employees to make them job ready. Union HRD Minister Mr.
Pallam Raju has emphasized the need for a curriculum change and increased academiaindustry collaborations. He has also cited that the gap between the two has to be bridged to
enhance employability of the people and thus the ministry would set up an Incubation fund
for 100 institutions. The fund will provide seed money for incubating ideas of students and
facility. The Ministry of Human Resources is in the process of launching the National
Employability Enhancement Mission (NEEM) through AICTE. The framework would
provide a platform for companies and entrepreneurs to provide employability skills and
internship as value added proposition to student for all fields. MHRD is also going to set up
an academia-industry interface council with representatives of industry and academia to
promote collaborations. The ministry would identify ten institutes with potential to have
research parks at tier 1, 2 or 3 level depending on the optimum size industry presence and
current level of academia-Industry engagement in the institute. MHRD also stresses the need
for more contribution from industry in research paving way to the most component of
funding activities at present for research and development in the country. The ministry also
expects the industry to engage itself more in terms of not only funding but also in skill
development, innovation and entrepreneurship. The Government is keen to promote top end
research for skill building and the plans to foster ties with academia, industry and the
Government which may be expected very shortly.

90

Working closely with the National Council for Skill Development (NCSD) led by Mr S.
Ramadorai, Advisor to the Prime Minister, CII, held widespread deliberations with its
members on the need for a National Qualification Framework. The Apprenticeship
programme enables industry to source and train youth according to its standards. However,
the Act needs to be amended keeping in mind the current realities. CII members developed a
set of recommendations to make the Apprenticeship Act industry-friendly, and thereby scale
the current number of apprentices from 3.5 lakh to 14 lakh. Recruiting capable trainers is also
an essential part of improving quality. CII, in consultation with the State Governments, is
imparting 'Train the Trainer' programmes with the focus on up gradation of existing trainers,
and capacity building of new trainers. Each region conducted 4-5 training programmes this
year. To connect youth from the ITIs with employers, CII has organized job fairs across India
and various Skill Hubs and Skill Gurukuls. To enhance skill delivery, CII has set up large
Skill Centres/Hubs with the capacity to train 1500 - 5000 beneficiaries per annum. CII, with
the State Governments and private sectors, is setting up Skill Hubs and Skill Gurukuls in
remote districts of India. So far, 13 Skill Gurukuls have been set up.

MECHANISM ADOPTS BY THE GOVERNMENT AND PRIVATE SECTORS TO


ERADICATE SKILL GAP THORUGH HIGHER EDUCATION:

The director IIT, Madras, Ashok Jhunjhunwala had presented a model developed for a better
academia industry partnership. Many large corporations like Larsen & Toubro, Bharti Group,
Hero Group, Maruti, ITC, Infrastructure Leasing & Finance Services Ltd. Etc., have

91

established training facilities that offer world class training programs that create an
environment of e-learning and innovation. The government is upgrading existing institutions
through a combination of own funding, multilateral assistance, and PPP. Closer involvement
of industry will be possible by forming an Institute Management Committee (IMC) headed
by an industry representative. IMC will be given financial and academic powers to help run
the institute. 1,396 Government ITIs have been upgraded through Public Partnership (PPP)

A lot of private sector companies are investing into the skill development of the work force.
Tata Motors contributes to skill development through a four pronged approach of upgrading
existing technical training institutes while establishing New Technical training Institutes
through public private partnership. They also provide special technical training to the
economic and the socially disadvantaged, through social partnerships and in-house training.

IL&FS education has a joint venture with NSDC called the IL&FS Skills Development
Corporation (ISDC), established with an objective to build and manage 100 multi skill
schools across India. ISDC aims to train around 2 million people (over the next 10 years)
across various skill sectors including textiles, engineering, construction, leather, auto and
various service sectors. ISDC plays a major role in addressing Indias demand for highly
skilled workers.

Fiat India has launched a social initiative, Diksha for providing technical training and
educational avenues for the Indian youth. The company came together with the Don Bosco
Vyawasaik Prashikshan Kendra in Pune for beginning this initiative. The main aim behind
92

this programme is provide a respectable means of livelihood for the poor, disadvantaged and
orphans who are deprived from having good educational amenities.

Bharti-Walmart in partnership with the Directorate of Employment Training and Karnataka


Vocational Training and Skill Development Corporation had launched the Bharti Walmart
Skill Centre at Bangalore. The skill centre is expected to train 100 candidates every month
and make them eligible for employment in the retail sector. The programmes are of 3-4
weeks' durations and will award certificates for floor assistants, sales assistants and team
leaders to participants. Bharti-Walmart runs similar centres in Delhi and Amritsar in
partnership with the Punjab and Delhi Governments.

OP Jindal Group gives the OP Jindal scholarship services for engineering and management
institutes in India. The scholarships aims to identify meritorious post graduate/graduate
students who emulate Shri OP Jindal's vision and values and have the potential to become
leaders in entrepreneurial and innovation excellence.

The Mahindra Pride School provides vocational training to the youth from socially and
economically disadvantaged communities, giving young people from scheduled castes and
scheduled tribes access to skills that empower them to earn a livelihood for themselves and
for their families. It offers three-month training programs in hospitality, customer relationship
management, and IT-enabled services. Each student also receives training in English, Life
Skills, and Computer Applications. It coordinates its training programs with the skill

93

manpower requirements of booming sectors with high growth potential to make sure that all
the students find rewarding employment after completing the courses.

Volkswagen India focuses on employment and education initiative for locals - training, skill
development and activities related to economic empowerment of local people and this
includes donations and sponsorships, especially in local communities in the Khed district,
local people in the state of Maharashtra and at national level. Through all these activities
Volkswagen India would ensure sustainable partnerships in shaping the communities where
its employees live and work. Hero Mindmine, part of the Hero Group, is one of the Indias
premier and leading organizations providing Training and Development services to
multinational corporations, Indian blue-chip clients and Government. It brings in best
practices and deep local knowledge to each of its engagements, through global alliances and
partnerships with a reputed Indian training organization with decades of experience.

ROLE OF RBI AND COMMERCIAL BANKS


Now, I would like to dwell upon the role played by Reserve Bank of India (RBI) and the
banking system in India in strengthening education system. Realizing the importance of
education for the economic development and the overall living standards, the RBI is involved
in formulating progressive and proactive policy guidelines for lending to education by the
banking system.

The RBI, in view of the importance of education and the need to bring more students under
the category of education loans, has classified such loans and advances granted to
94

individuals for educational purposes up to Rs. 10 lakh for studies in India and Rs. 20 lakh for
studies abroad, under priority sector.
In June 2004, the scope of definition of infrastructure lending was expanded to include
construction of educational institutions. Accordingly, schools and colleges can now avail
bank finance for improving their infrastructure. The available figures (covering about 63 per
cent of banks under the category of infrastructure), indicate the share of outstanding loans
to educational institutions in the total infrastructure lending of commercial banks was 1.5 per
cent for end-March 2011.

RBI has been liberalizing foreign exchange rules for acquiring education from institutions
abroad. A student can draw foreign exchange equivalent to USD 10,000 under private visit
quota at the time of going abroad. The limit of USD 30,000 for education abroad on
declaration basis was enhanced to USD 1,00,000 since July 17, 2003. In addition, a student
can also draw foreign exchange equivalent to USD 2,00,000 for education purposes under
liberalized remittance scheme before leaving the country i.e. before he/she gains the status of
non-resident. Students can avail loan from a bank abroad for study purposes on the basis of
counter guarantee given by an Indian Bank under approval route.

With a view to facilitate banks, the Indian Banks Association has brought out a model
scheme for educational loan in the year 2001 which was again revised in January 2010 and
got circulated to all member banks for implementation. This would facilitate economically
weaker sections of the society to avail educational loans from scheduled banks with modified
easier norms. In recent years, there has been a remarkable spurt in the disbursal of

95

educational loans by commercial banks. The educational loans outstanding amounted to


Rs.27,709 crore as at end March 2009 which increased to up to Rs.42,808 crore as at endMarch 2011.
Table 2.3
Educational Loan of Scheduled Commercial Banks
Particulars

Mar-09 Mar-10

Mar-11

Amount Outstanding ( in Rs Crore)

27709.5 36359.7

42808.1

No of Accounts (In Lakh)

16.3

19.7

22.8

We have nominated a nodal officer at the Central office of the RBI for the purpose of all
educational loan issues/grievances.
Apart from policy formulation, as an institution also, RBI undertakes activities to educate
students relating to central banking, banking and financial system. Illustratively, to educate
young scholars, a scheme has been introduced in which every year RBI selects a good
number of scholars from different region of the country. In addition, RBI has set up research
and training institution for banking technology.

THE BOTTLENECKS FACED IN ACHIEVING THE GOAL OF SKILL


DEVELOPMENT IN HIGHER EDUCATIONAL INSTITUTIONS

As skill development in a large scale takes off, the implementing agencies (government,
institutes both government and private, vocational training providers, and other such
96

implementers) would be faced with challenges that come up at every segment of the skill
development. The various challenges would be pertaining to the following dimensions:
How does a centre attract or mobilise students?
Is there an ability to pay among trainees?
What are the courses that need to be offered for each centre/institute, or regionally?
Is there a demand for such courses/trades?
Will an in-house system work or a franchisee system or a combination of both?
How is the training delivered?
What is the infrastructure required and is it available?
How can qualified trainers be found?
Is there a system for third party assessment and certification?
How will the project owner raise funding?
What will the form of funding debt, equity, grant?
Is the model sustainable and viable?
How would the institute guarantee placement linkages?
How does the institute or the training provider connect with industry?
It is necessary that the implementing agencies be aware of these challenges and proposes
innovative customs to tackle them. Indias workforce, the second largest in the world after
China, needs to be trained across four levels, from the White Collar workers to the Rust
Collar workers, linking them to job opportunities and market realities. The skills challenge
97

becomes acute for India considering that the country has a large portion of its population
below 25 years of age. This young population can be transformed into a productive
workforce giving a fair Dividend to the Indian Economy. Currently a major proportion of this
population is not productively engaged in economic activities due to a mismatch between
skills and the jobs requirement. This mismatch often leads to economically inactive working
age group people. This not only impacts the economy, it also has serious consequences for the
society at large. It is required to not only skill and educate the workforce at the higher skill
levels (which is key to ensuring industry competitiveness through research and IP, etc.), but
also to adequately skill the workforce at the lower levels (i.e., where much of the workforce
is concentrated).

Chart 2.3
Skill Pyramid

Source: IMaCS analysis

98

From the above Skill Pyramid, it is accordingly required that the skill development initiatives
be targeted at all the levels. Vocational Education in schools could be enhanced. This may
present a channel for students to acquire skills, both life skills and industry-specific skills
during schooling.

FOCUS REQUIRED:
To address the challenges and reap the benefits of the demographic opportunity, skills
initiatives in India need to focus on
1. Quantity: Over 65% of Indias large population is below 35 years of age; a robust skills
training and certification system for these large numbers is a mammoth task.
As per the 11th Five year plan Vocational education will be expanded to cover 20000 schools
with intake capacity of 25 lakh by 201112. The programme will ensure mobility between
vocational, general, and technical education and multiple entry and exit options
The National Skills Policy in 2009 has set a target of skilling 500million by 2022
The current skill development capacity is 3.1 million persons per annum which have to be
upgraded substantially to 12 million persons per annum.

2. Quality: The diplomas and certificates with which students graduate are usually out of sync
with the needs of the industry. As a result, industry finds it difficult to recruit adequately
skilled labour and is forced to undertake large training programs. The shortage of skilled
workforce results in loss of productivity, while training programs imply high labour costs.
99

The National Vocational Qualification Framework (NVQF) and National Vocational


Education Qualification Framework (NVEQF) are Standards developed by the Sector Skills
Councils (SSC's) can ensure clarity of career choices, options and acceptability of the
qualifications.

The FICCI Skill Development forum has made recommendations for the 12th Five year Plan.
In order to ensure the quality of skills delivered it has highlighted:
i.) Building skills training as a mainstream and inclusive program to be promoted by creating
a formal arrangement among the three key stakeholders in the delivery pyramid:
Government, Industry and Skills providers

ii). Industry led Train the Trainer (TTT): One of the key components of Skills Training is
the trainer. It is the pedagogical expertise of the trainer which ensures that the learner gets a
wholesome experience, understands the standards and is fully equipped to apply the concepts
learnt during his employment. The Training of Trainer hence becomes a major challenge.
iii) As per the NSDC report on Education sector there is an incremental requirement of
8,664,000 teachers and trainers between 2008 2022.

3. Access: Indias large geographical territory, difficult terrain and varying social economic
conditions make the implementation of standardised, skill-based instruction a huge challenge.

100

A very large geographical expanse comprising of 6,38,365 villages, 4378 towns over 35 cities
and 640 districts, with difficult terrain and varying social economic conditions make it
difficult for all learners to have access to training.

States like Bihar, (with a population greater than that of Germany), Jharkhand, etc have little
access to skills training and the population comprises of a large unskilled workforce. There is
wide disparity in industrial development, and have little industrial activity, which makes it
difficult for workers to find jobs.

Nearly 37 percent of the Indian population lives below the poverty line and lives on less than
1 Dollar a day. They cannot afford even basic amenities leave aside education and training.

About 89% of the 15-59 year olds have had no vocational training. Of the 11% who received
vocational training, only 1.3% received formal vocational training. The current training
capacity is a fraction of the 12.8 million new entrants into the workforce every year.
Therefore access to skills programs becomes a major challenge.

101

CHAPTER 3.2

INDUSTRY

ACADEMIA

INTERFACE

AND

ITS

IMPACT

OF

SKILL

DEVELOPMENT

The impact of globalization on Indian Economy, emergence of the free market, formation of
international trading blocks, development of new technologies with low half-life periods, the
advent of information technology and Bio Technology and the necessity of improving quality
to meet the requirements of international markets, have greatly affected business, and forced
industry to look for support from academia. During the last four decades there have been
conscious efforts in India to promote cooperation between Academia and Industry. However,
only marginal success has been achieved, possibly because the universities and the industrial
units have not been under any pressure to interact. Recent events have, however, changed the
situation.

Higher education occupies an important place in the educational process of a country. In


independent India higher education is considered as the important tool for national
development. Education is the process of the perfection of the mankind. Higher Education is
the main instrument for development and change. It has the important task of preparing
leaders for different walks of life-social, intellectual, political, cultural, scientific and
technological, etc. The intellectual dynamism, resourceful and economic prosperity of a
country is reflected in quality of higher education. The 1968 National Policy of Education
document laid stress on the need for a national reconstruction of the education system, to
102

improve its quality at all stages, and gave much greater attention to science and technology,
the cultivation of moral values and a closer relation between education and the life of the
people.

Table 2.4
TOTAL NO. OF UNIVERSITIES IN THE COUNTRY AS ON 14.08.2014
UNIVERSITIES

NUMBER

State Universities

321

Deemed to be universities

129

Central Universities

45

Private Universities

187

Total

682

Source : UGC
The educational system in India is in a critical state today- resistant to change. Since
independence, though many commissions have submitted their reports and many eminent
men have propounded their plans for rejuvenating the system, there has always been a wide
gap between the plan and the action leaving the system still stranded on the roads.

There is general agreement that the state of Indian Higher Education is far from satisfactory.
The overall impression amongst lay persons is that standards are deteriorating and that the
knowledge and skills imparted by our academic institutions are to a great extent irrelevant to
the needs of society.

103

The failure of the system to deliver the goods has been attributed to a number of maladies
including its colonial roots, the failure to control unplanned expansion, perennial shortage of
funds, and inflexible academic structure with an antiquated examination system, resistance to
change from all its constituents, activism on campuses, highly politicized and bureaucratized
system of management, pressure from politicians and special interest group, the distancing of
the universities from society and a general lack of concern. The truth, however, is that there is
a great variability in the standard of education provided by Indian academic institutions.

Chart 2.4
COMPETENCIES REQUIRED FOR EMPLOYABLE GRADUATES

104

Source: Darce Pool & Sewell (2007).


INDUSTRY-ACADEMIA INTERACTION AN INSTRUMENT TO SKILLED
LABOUR FORCE

It goes without saying that the training of technical manpower in the country must be
consistent with needs of the country, both in terms of numbers, and the nature of the training.
The Ministry of Labour and Employment, Government of India (2009) that those educated
but without professional skills constitute 69% of the total unemployed; whereas out of all
university graduates only a meagre 13% are employable.

The need for developing

employability skills has been acknowledged internationally. Report to UNESCO of the


International Commission (1996) on Education for the Twenty First Century identified four
pillars of education, i.e. learning to know, learning to do, learning to live together and
learning to be which reflect the general employability skills required to deal effectively with
the job situations of the 21 st century. Naturally, therefore, the curricula and course structures
have to be designed keeping in mind the nature of work that the graduating students are
expected to undertake. The vast majority of the graduates of engineering colleges and
diploma polytechnic are employed by industry, both in the private sector and the public
sector.

Relatively smaller numbers go into entrepreneurship; some find employment in government


organisations; only a few go in for higher education with the ultimate objective of taking up
career in the academic institutions. Thus the needs for the industry, which is the major
employer of our graduates, should constitute an important factor in the design of our

105

curricula. This input has to come in several forms. It is not sufficient that industry participate
in curricula design exercises. There has to be constant collaboration at various levels to
achieve the best match between the needs of industry and the kind of education imparted at
the colleges and institutions. Such collaboration will make graduates more readily useful to
industry, thereby reducing the length of the training programme in the industry. Exposure to
industry during the course of the education programme will also enable the students to
become familiar with the nature of jobs in various industries, thereby helping them in proper
career planning.

Table 2.5
GROWING SKILL GAP (Expected shortfalls in 2022)

106

Source: EMSI, QCEW 2013.2

The universities and professional institutions should come out of their ivory towers and
interact with the outside world. Similarly, the industries should build confidence in the
capabilities of the universities and the institutions and interact with them for mutual benefit.
It should be recognized that the academic world, industries and R&D organizations together
hold the key to the technology development in many of the core sectors of our country aiming
insight into the problems of the industry and it provides a base for research and education.
Survival of industry largely depends on the improved, innovative and new technologies and
for this purpose it needs the support of the academic institutions. Unfortunately, in our
country universities including technological institutions and the industry have been run on
parallel lines without interaction.
107

During the last three decades there have been conscious efforts in India to promote
cooperation between Academia and Industry. However, only marginal success has been
achieved, possibly because the universities and the industrial units have not been under any
pressure to interact. In India, Industry- University participation has been keeping low ebb
over the decades. As a result of liberalization of Indian economy during current decade, we
have focussed our attention on this problem. University Grants Commission and the All India
Council for Technical Education have adopted a concrete strategy and taken positive steps
towards establishing Industry-University participation. As per requirements of National
Education Policy 1986, Programme of Action 1992, a long lasting relationship should be
established between Industry and University.

The Universities have, for the first time, been asked to generate, at least in part, their own
resources, and find that they must assist business to ensure survival. It is evident that, in the
coming years, industry, universities, and research institutions will, out of necessity, have to
assist each other. In order to do so they will, however, have to first overcome attitudinal
difference and remove some obvious impediments. With the new policy of liberalization,
globalisation and privatization, Indian industries have to face stiff competition with large
multi-national giants.

To meet the challenges, the Indian higher technical education system needs revamping and
restructuring. Not only science and technology base has to the strong but also our human
resource has to rise to the occasion and meet the emerging challenges. This calls for major

108

emphasis on close-industry-institute-partnership, resource generation and faculty exposure by


the technical education institutes. The whole world has become boundary-less global
economic village. Our human resource has to generate wealth and cost consumer wealth. The
facilities at academic institute as well as industries have to be optimally utilized to complete
the global economy.

Table 2.6
ANALYSIS OF OPINION BASED ON THE DIFFERENCE BETWEEN THE
PRESENT SKILLS DEVELOMENT INITIATIVES TOWARDS IMPROVING THE
EMPLOYABILITY SKILLS OF THE STUDENTS.

Do the Present Initiatives Improve Employability Skills of the students?


Cumulative
Frequency

Percent

Valid Percent
Percent

109

Valid

Yes

47

47.0

47.0

47.0

Sometimes

47

47.0

47.0

94.0

No

6.0

6.0

100.0

Total

100

100.0

100.0

From the present study of 100 colleges, the inferred result from the above table concludes
that 47% respondents are satisfied with the present initiatives by the department to improve
the employability skills of the students and another 47% of respondents regard that the
present initiatives taken by the department would sometimes improve the employability skills
of the students. Only 6% of respondents are not satisfied with the initiatives taken by the
department of the college for improving the employability skills of the students.

Table 2.7
SKILL DEVELOPMENT INITIATIVES BASED ON THE TYPE OF
INSTITUTIONS:

Sum of Squares

Df

Mean Square

Sig.

Between Groups

1.968

.984

7.207

.001

Within Groups

13.244

97

.137

Total

15.212

99

110

The Skill development initiatives are highly significant between and within the Arts &
science Colleges, Engineering Colleges and the Universities.

Table 2.8
SKILL DEVELOPMENT INITIATIVES
Duncan
Type of Institution

Subset for alpha = 0.05


1

Arts & Science College

46

Engineering college

47

4.00

University

4.02

Sig.

3.74

1.000

.880

In the present study, the skill development initiatives are best in the universities, better in the
engineering colleges and have to be still developed in the Arts & Science Colleges.

111

DESIGNING AND DELIVERING SKILLS DEVELOPMENT PROGRAMMES BY


HIGHER EDUCATIONAL INSTITUTION FOR MANAGEMENT STUDETNS
THROUGH INDUSTRY PARTICIPATION

Skills shortage continues to be one of the major constraints to economic growth and
transformation of our economy, and the labour market. Due to the skills shortages, industry
including government, cannot implement viable economic opportunities, thus constraining
economic growth. Industry constantly complains about this shortage and urges government to
intervene.

Employability hinges on knowledge and technical skills. An employable person is able to


gain initial employment, maintain that employment and improve prospects by rising in the
organization or getting new job. All this requires functional literacy, technical and vocational
skills, and soft skills such as communication. Several studies have shown that a large
proportion of Indias youth lacks these skills today; of the 145 million labour force, 83
million youth are seen as unemployable. Employability skills are very amenable to being
taught, and being at apex of educational ladder, higher educational institutions have great role
to play in this regard. But the present system of higher education produced some degree

112

holders with mere knowledge and information in a particular area, but it has failed to develop
general employability skills needed for entry-level employee.

Hence, it is high time for planners, policy makers and practitioner of higher education to
ponder over it and make necessary reforms in the course and strategies so that employability
skills can be developed among the students. These challenges cannot be met alone by
government initiatives. So the Industry Partnership should creatively draw to meet this
demand. -Industry partnerships could be an opportunity to improve quality and relevance of
an education system or increase funding possibilities in order to allow the government to
offer a better educational system. However many higher educational institutions are ill
prepared for the job of collaborating with industry.

Generally an institute of higher education is looked upon as a centre of learning or


enlightenment with primary objective of teaching-learning. The function of empowering a
student for workplace was assumed to be attained automatically through the conventional
practices of teaching-learning and evaluation. The graduates employability was largely taken
for granted by higher education institutions. However, it is alleged that the present higher
education system of the country does not fulfill the need of providing employable manpower.
There is a mismatch between the existing higher education system and employability. The
products of higher education with excellent academic results are unable to face interviews
with self-confidence; show lacking communication skills; could not take part in group
discussion; are hesitant; and show poor in basic and affective skills.

113

The Ministry of Labour and Employment, Government of India (2009) states that those
educated but without professional skills constitute 69% of the total unemployed; whereas out
of all university graduates only a meager 13% are employable. The need for developing
employability skills has been acknowledged internationally. Report to UNESCO of the
International Commission (1996) on Education for the Twenty First Century identified four
pillars of education, i.e. learning to know, learning to do, learning to live together and
learning to be which reflect the general employability skills required to deal effectively with
the job situations of the 21st century. Every individual needs to acquire self-learning and selforienting skills to utilize every learning opportunity throughout life. It may be towards
broadening his knowledge, skills, attitudes and capacity to adjust in complex, changing and
interdependent world of work. Higher education of a country stands upon these pillars and
would certainly lead to the development of not only quality, but also employability skills as
whole.

Employability is not job specific technical skills, but they are the general level of
preparedness of perspective entry level employees. Employability skills are the attributes of
employees, other than technical competencies, that make them an asset to the employer.
Employers want entry-level employees to possess an array of basic, higher order and
affective employability skills and traits. So, these skills may be organized in three categories:

Basic Skills (oral communication, reading, basic arithmetic, writing),


(ii) Higher-Order Thinking Skills: (Problem solving, Learning skills, Strategies, Creative,
innovative thinking and decision making,

114

Affective domains and Traits (Dependability/Responsibility, Positive attitude towards works,


Conscientiousness, punctuality, efficiency, Interpersonal skills, cooperation, working as a
team members, self-confidence, positive self-image, adaptability, flexibility, enthusiasm,
motivation, self-discipline, self-management, appropriate dress, grooming, honesty, integrity
and mental set of working without supervision).

Chart 2.5
COMPETENCIES REQUIRED FOR EMPLOYABLE GRADUATES:

INDUSTRY

PARTICIPATION

IN

SKILL

MANAGEMENT STUDENTS:

115

DEVELOPMENT

AMONG

Employability skills are very amenable to being taught, and being at apex of educational
ladder, higher educational institutions have great role to play in this regard. But the present
system of higher education produced some degree holders with mere knowledge and
information in a particular area, but it has failed to develop general employability skills
needed for entry-level employee. Hence, it is high time for planners, policy makers and
practitioners of higher education to ponder over it and make necessary reforms in the course
and strategies so that employability skills can be developed among the students. It is truly a
daunting task, one may not be able to accomplish this task without the participation of the
private sector.

Chart 2.6
GROWING SKILL GAP
(The expected shortfall in industries in 2022)

116

Source: IMaCS, Aon Hewitt and NSDC (Business Today, 31st March 2013)

The gap between the demand and supply of skilled workforce has widened over the years.
These challenges cannot be met alone by government initiatives. So the Public and Private
Partnership (PPP) should creatively draw to meet this demand. Public-private partnerships
could be an opportunity to improve quality and relevance of an education system or increase
funding possibilities in order to allow the government to offer a better educational system.
However many governments higher educational institutions are ill prepared for the job of
collaborating with private sector.

Employers value these generic employability skills above the

specific occupation skills.

Because, Chadha (2007) revealed that 87% persons losing their jobs or failing to be promoted
due to improper work habits and attitude rather than insufficient job skills or knowledge.
Employers place greatest importance on employees attitude rather than insufficient job skills
or knowledge. Employers place greatest importance on employees attitude and basic skills
over job specific skills and having an understanding of the work environment. Due to the
effect of globalization and privatization, a drastic change has been brought about in the
modus-operandi of the work place, and thereby, the demand for possession of basic, higher
order and affective domains within the employee is growing day by day. It is significant to
note that the employers often provide training to new employees on job-specific technical
skills, company-specific procedures, and attempt to acquaint them with behavioral norms,
standards and expectation of their workplace. But as far as general employability skills are
concerned, employers want that the educational institutions should take most of the
responsibility for developing these skills among the young people.
117

CHAPTER 3.3

Table 3.1
FACTORS REQUIRED TO STRENGTHEN THROUGH PRIVATE SECTORS
PARTICIPATION IN HIGHER EDUCATION

COMMUNALITIES
Initial

Extraction

Updation of Syllabus

1.000

.678

Innovative Teaching Methods Relating Industry

1.000

.543

Industry Experts - Guest Lecture

1.000

.701

Industry Experts -Seminars etc

1.000

.831

Skill Develpmnt Program

1.000

.567

Encouraging - Internships/Projects

1.000

.797

Collaborative Course/Exchange Prgm/MoU

1.000

.683

Feedbacks from Industry about Past Students

1.000

.749

Read Newspapers/Indstry Reports

1.000

.682

Encourage-Attend TP &WS outside Institution

1.000

.773

Encourage-Alumini -Skill Development Progrm

1.000

.599

Skill Development Center in Dept.

1.000

.506

Others

1.000

.655

118

Extraction Method: Principal Component Analysis.

The communalities in the above table for the present study are all high which indicates that
the extracted components represent the variables well.

119

Table 3.2
TOTAL VARIANCE EXPLAINED

Co

Extraction Sums of

Rotation Sums of

Squared Loadings
% of
Cumul

Squared Loadings
% of

Initial Eigen values

mp

% of

Cumul

Varian

ative

Total
2.453

ce
18.869

%
18.869

1.706

13.124

1.423

one

Varian

ative

Varian

Cumul

Total
2.453

ce
18.869

%
18.869

Total
1.891

ce
14.548

ative %
14.548

31.993

1.706

13.124

31.993

1.769

13.608

28.157

10.948

42.941

1.423

10.948

42.941

1.465

11.266

39.423

1.139

8.759

51.700

1.139

8.759

51.700

1.246

9.588

49.011

1.039

7.991

59.691

1.039

7.991

59.691

1.222

9.402

58.413

1.003

7.714

67.405

1.003

7.714

67.405

1.169

8.992

67.405

.847

6.513

73.918

.775

5.964

79.882

.679

5.226

85.108

10

.586

4.507

89.615

11

.524

4.033

93.648

12

.515

3.965

97.613

13

.310

2.387

100.00

nt

120

Table 3.3
ROTATED COMPONENT MATRIX
Component
1
2
3
4
1.Updation of Syllabus

.251

-.040

.747

.102

.204

.056

-.079

.037

.667

.079

-.275

-.092

3.Industry Experts - Guest Lecture

.192

.275

-.215

-.292

.339

-.585

4.Industry Experts Seminars etc

.123

.022

-.150

-.191

.169

.853

5.Skill Development

.657

.256

-.093

.180

.167

.022

.009

.074

.016

.131

.878

.046

.431

.437

.115

.473

-.141

.220

.090

.006

.068

.828

.191

-.121

.750

-.006

.337

.056

-.003

.056

.048

.865

.094

-.037

-.107

.007

.760

-.120

-.051

-.032

-.052

-.034

12..Skill Development Center in Dept.

-.041

.325

.490

-.376

.127

-.038

13.Others

-.027

.748

-.025

.042

.275

-.125

2.Innovative Teaching .Methods Relating


Industry

6.Encouraging

Program

Internships/Projects

7.Collaborative Course/Exchange
Program/MoU
8.Feedbacks from Industry

about Past

Students
9.Read Newspapers/Industry Reports
10..Encourage-Attend

TP&WS

outside

Institution
11.Encourage-Alumini Skill Development
Program

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

121

Table 3.4
COMPONENT TRANSFORMATION MATRIX
Component

.704

.522

.315

.294

.215

.014

-.413

.708

-.195

-.272

.313

-.343

-.304

.134

.831

-.089

-.415

-.138

.156

.273

-.074

-.617

-.264

.667

-.466

.174

.071

.547

.210

.635

-.012

-.322

.402

-.388

.755

.118

122

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.

The above depicts that the first factor highly correlated, comprises of the Conduction of
skill development programme with the help of industrial experts, Reading the newspapers
and the industry reports and the Encouragement of Alumni networks for skill
development programs

The second factor denotes the encouragement skill development is tof the students to
participate in the training programme or the workshops conducted outside the
institutions.

The third factor to strengthen the employability skills of the students is the updating of
the syllabus based on the industry requirement. Use of innovative teaching methods that
relate to the industry and the conduction of the specific skill development center inside
the department of the institution.

The fourth factor denotes the feedbacks from the industry about the past students. The fifth
factor represents the encouragement of the internships and projects with the industry.

The sixth factor to strengthen the employability skills of the students is inviting the industry
experts to conduct the guest lectures, seminars, workshops etc.
123

Table 3.5
ANALYSIS OF OPINION OF CUSTOMERS REGARDING FACTORS TO
STRENGTHEN THE EMPLOYABILITY SKILL DEVELOPMENT IN HIGHER
EDUCATION INSTITUTION AND THE SKILL DEVELOPMENT INITIATIVES OF
THE INSTITUTION:
CORRELATIONS

Pearson Correlation
SD Initiatives

Factors

SD Initiatives

Factors

.602**

Sig. (2-tailed)

.000

100

99

Pearson Correlation

.602**

Sig. (2-tailed)

.000

99

99

**Correlation is significant at the 0.01 level (2-tailed).

Null Hypothesis (Ho): There is no significant relation between the factors to strengthen the
employability skill Development in Higher Education Institution and the Skill Development
Initiatives of the Institution.

Alternative Hypothesis (H1): There is no significant relation between the factors to strengthen
the employability skill Development in Higher Education Institution and the Skill
Development Initiatives of the Institution.

124

In the study conducted, Since the P Value is .000 which is < 0.05, the null hypothesis is
rejected and alternative hypothesis is accepted. There is a perfect correlation between the
factors to strengthen the employability skill Development in Higher Education Institution and
the Skill Development Initiatives of the Institution.

125

Table 3.6
ANALYSIS OF DIFFERENCE AMONG THE FACULTY WITH, WITHOUT AND
WITH BOTH EXPERIENCE TOWARDS THE APPLICATION OF
STRENGTHENING THE EMPLOYABILITY SKILL DEVEOPMENT IN THE
EDUCATIONAL INSTITUTION.
ANOVA
Sum of

AP

with

Academic

Experience

AP

with

AP

with

Between Groups
Within Groups

43.017

79

.545

Total

52.640

99

36.064

20

1.803

79.726

79

1.009

115.790

99

30.554

20

1.528

102.356

79

1.296

Total

132.910

99

Between Groups

9.851

20

.493

41.059

79

.520

Total

50.910

99

Between Groups

43.270

20

2.163

Within Groups

68.520

79

.867

Total

111.790

99

Between Groups

24.436

20

1.222

Within Groups

70.404

79

.891

Total

94.840

99

Between Groups
Both
Within Groups

No.Of Associate Profs Within Groups

Associate Profs with


Academic Experience

Associate Profs with


Industry Experience

Square
.481
.884

Total

Experience

Mean

Squares
9.623
20

Between Groups
Industry
Within Groups

Experience

Df

126

Sig.
.050

1.787

.037

1.179

.038

.948

.532

2.494

.002

1.371

.049

Associate Profs with


Both Experience

No. Of Professors

Profs with Academic


Experience

Profs with Industry


Experience

Profs

with

Experience

Both

Between Groups

2.323

20

.116

Within Groups

22.223

78

.285

Total

24.545

98

Between Groups

13.365

20

.668

Within Groups

59.385

79

.752

Total

72.750

99

Between Groups

39.991

20

2.000

Within Groups

86.759

79

1.098

Total

126.750

99

Between Groups

43.349

20

2.167

Within Groups

77.011

79

.975

Total

120.360

99

Between Groups

14.179

20

.709

Within Groups

30.781

79

.390

Total

44.960

99

Between Groups

28.380

20

1.419

54.370

79

.688

Total

82.750

99

Between Groups

8.908

20

.445

Within Groups

36.082

79

.457

Total

44.990

99

69.354

20

3.468

75.486

79

.956

Total

144.840

99

Between Groups

42.111

20

2.106

Within Groups

105.279

79

1.333

Total

147.390

99

No. Of Guest Faculties Within Groups

GFs

with Academic

Experience

GFs

with

Between Groups
Industry
Within Groups

Experience

GFs

with

Experience

Both

127

.408

.047

.889

.601

1.821

.032

2.223

.007

1.820

.032

2.062

.013

.975

.036

3.629

.000

1.580

.042

Null Hypothesis (HO): There is no significant relation between the type of experience of the
faculty and the application of strengthening of the employability skill development in the
Higher Educational Institution.

Alternative Hypothesis (H1): There is significant relation between the type of experience of
the faculty and the application of strengthening of the employability skill development in the
Higher Educational Institution.

The study reveals that since the P Values of the Faculty with experience, without experience
and with both experience is < 0.05, the null hypothesis is rejected and hence the alternative
hypothesis is accepted. Therefore there is significant relationship among the Professors,
Associate Professors, Assistant Professors and the Guest faculties with experience, without
experience and with both experience towards the application in strengthening of the
employability Skill development in the Higher Educational Institution.

128

DEVELOPING

EMPLOYABILITY SKILL AMONG

STUDENTS THROUGH

COMMUNITY COLLEGES:

According to The Confederation of Indian Industry (CII) is happy to partner Wheebox &
People strong in the India Skills Report 2014. With manpower of 1.2437 billion, it is ironic
that India has to suffer from dearth of talent? As per recent studies the severity of the situation
can be estimated that only 10% of MBA graduates of the country are employable and same is
true for the engineering graduates where this number is as low as 17%. This scarcity of
skilled talent makes it impossible for the Talent Supply Chain to operate effectively and is an
issue which if not taken care of immediately will become uncontrollable. One can imagine
the enormity of the challenge India will face when in year 2026, 64.8% of Indias population
would be in the working age of 15-64 years. Solving this problem requires true-blue
participation from all actors of the supply chain: the Academia, Industry and the Government.
The first step towards any such partnership is a better understanding amongst partners: the
needs, expectations and the challenges of each other. Only then can any plan bridge the gaps.
India and its manpower is again at the centre stage of the world. This time though, its not a
predicament, but it is the source of hope to the so called aging developed nations. With an
expected population of 1.3 billion by 2020, 60% of which would be in the working age group
(15-59 years) India is the powerhouse of the coming decade.

According to a research by Boston Consulting Group, estimate is that by 2020 India will have
a surplus of active population - about 47 million people. This is almost more than all the rest
of those countries with net positive growth combined. One might think that China would be a
big player in future, but with their one-child policy, theyre down by 10 million. The U.S. is
129

down by 17 million. The possible winner for building the biggest pool of future workforce is
India. This phenomenon for a nation when major portion of its population is active (in the
working age 15-50 years) is referred to as the stage of reaping the demographic dividend.
When the developed nations of the world would be facing a decline in their working
population, India would be at the stage of lowest dependency ratio. Considering that lower
dependency ratio has been the feature of the of the development stories of various countries,
world has a reason to look up to us.

For a country to collect its full demographic dividend, it has to put enough money into
education to turn a large number of those new workers into moderately productive ones. The
countrys economy has to be organized so that the available profits from a growing work
force get reinvested in the economy. But for nation like India, where the literacy rate has huge
variation from one end of the country to another; and more than 90% of the workforce is part
of un-organized sector this upcoming growth phase brings with it the shadow of an upcoming
catastrophe. This economic situation is topped by the social condition of the country. Most of
the resources fall short for the population they are intending to serve, resulting in unrest
situations like Maoism and Naxalism prevalent in various areas of the country. Where the
citizens of the land decide to take laws of land in their own hand and work for their survival.
Even if the economic and social situation of the country is ignored, the quality of workforce
is also an area of concern. A remarkable 60% of total population available for working and
contributing towards GDP, but out of the total pool only 25 % is capable of being used by the
market. If the research findings are to be believed there would be a demand-supply gap of 8286% in the core professions; IT industry would face the shortage of up to 3.5 mn skilled
workers. Same is the situation for almost all the sectors. In short our markets will grow,
creating an increase in jobs and need for skilled manpower, but against the demand there
130

would be a scarcity of skilled workforce. This is what we call as the Great Indian Talent
Conundrum that can easily transport us from the stage of Reaping Demographic Dividend
to a stage of facing the Demographic disaster. According to the National Vision Document
of India @75 (By CII, BCG and YII) , India would need a supply of 700 million skilled
workforce to meet the demands of growing sectors. The Government of India has been
taking various steps towards this direction, such as, the formulation of the National Skills
Development Policy, delivery of Modular Employable Schemes, up gradation of existing
institutions through World Bank and Government of India funding, as well as up gradation of
training institutes under Public Private Partnership mode, setting up of the National Skill
Development Corporation, and the plan to establish 50,000 Skill Development Centres. Apart
from these, several ministries/departments and state governments are engaged in skill
development initiatives. However all these effort would count to nothing, if a partnership
between the source or reservoir of Man- Power and the destination or refinery of Man-power
is not maintained. It would require joint efforts from Government, Talent Suppliers
(Institutes/Academia), and Talent Absorbers (Corporate/Employers). To initiate these efforts
for bringing desired change, it is important to understand the current condition of demand and
supply side.

SHAPING STUDENTS FOR A SOUND CORPORATE FUTURE:

Matchmaking between the supply and demand of resources has been one of the most complex
tasks performed. Be it the Initial days of Industrial development when the focus was on
increasing the industrial output, to the present day knowledge economy where the output is
service delivery; managing complex and dynamic supply and demand networks has always
131

been the prime concern area. Various techniques have come up since then to demystify the
puzzle of supply-demand mismatch and added to the list of Supply Chain Management
Techniques. With this issue of Talent supply-demand gap raising its head across all Industry
sectors, Talent Supply Chain is the new buzz word in Talent Management arena.
Companies globally are reporting greater difficulty in filling key roles. While they may have
access to plenty of people, they dont always have access to plentiful talent.

The availability of the right skill setsthe kinds that drive innovation, efficiency and
competitive advantageis elusive. According to a study conducted by HCI and Kelly OCG,
frustration of Talent Supply is widespread, only 20% companies are satisfied with their
access to right talent for job. With a huge skill pool available, this situation is surely a
paradox. To be successful and fully leverage the talent pool available, implementing sound
adaptation strategies is the smart way forward. Simply waiting for conditions to improve is
no longer available option, nor is it likely to provide access to the talent thats required now
or in the future. This would require a more comprehensive understanding of the availability
and competition for talent, which can be achieved by implementing basic supply chain
management principles. In this direction Government of India in its 12th Five Year Plan
Document of the Planning Commission has laid a special emphasis on expansion of skillbased programmes in higher education. It recommends setting up of Community Colleges
(CC) to serve multiple needs, including (i) career oriented education and skills to students
interested in directly entering the workforce; (ii) contracted training and education
programmes for local employers; (iii) high-touch remedial education for secondary school
graduates not ready to enroll in traditional colleges, giving them a path to transfer to three or
four year institutions; and (iv) general interest courses to the community for personal
development and interest. The Plan Document also states that Community Colleges will be
132

located to afford easy access to underprivileged students and such colleges could either be
established as affiliated colleges of universities or as entirely autonomous institutions.

COMMUNITY COLLEGES IN INDIA:

The Community College model, by and large, will be accessible to a large number of
individuals of the community, offer low cost and high quality education locally, that
encompasses both vocational skills development as well as traditional coursework, thereby
providing opportunities to the learners to move directly to the employment sector or move
into the higher education sector. It offers a flexible and open education system which also
caters to community-based life-long learning needs. It has a synergistic relationship between
the community, community college and the job market. The idea of establishing such colleges
in the country was unanimously endorsed in the Conference of State Education Ministers
held on 22nd February, 2012 and a Committee of Education Ministers of nine States was
constituted to finalize the concept and framework of the Community College scheme. The
Committee, after wide consultations with all concerned, presented its report to the
Government which received the concurrence of the State Education Ministers in the
conference held on 6th June, 2012. The Government of India has accepted this report and
decided to introduce this scheme during the 12th Five Year Plan.

The main objectives of the scheme are:


To make higher education relevant to the learner and the community;

133

To integrate relevant skills into the higher education system;


To provide skill based education to students currently pursuing higher education but actually
interested in entering the workforce at the earliest opportunity;
To provide employable and certifiable skills with necessary general education to Senior
Secondary School pass-outs not willing to join existing higher education system;
To provide for up-gradation and certification of traditional / acquired skills of the learners
irrespective of their age;
To provide opportunities for communitybased life-long learning by offering courses of
general interest to the community for personal development and interest;
To provide opportunity to move to higher education in future; and
To offer bridge courses to certificate holders of general / vocational education, so as to bring
them at par with appropriate NVEQF level.

PROGRAMMES AND CURRICULA IN COMMUNITY COLLEGES

In order to make education relevant and to create industry fit skilled workforce, the CCs
will have to be in constant dialogue with the industry, so that they remain updated on the
requirements of the workforce for the local economy. These colleges should also preserve and
promote the cultural heritage of the locality, be it art, craft, handicraft, music, architecture or
any such thing, through appropriately designed curriculum with proper assurance of
employment including self-employment and entrepreneurship development.

134

With a view to make the skill acquired by the learners acceptable nationally, the curricula and
system of certification has to be done as per the national standards. In order to facilitate
offering of nationally standardized skill related programmes, the Government of India
(Ministry of Human Resource Development) has already notified the National Vocational
Education Qualifications Framework (NVEQF) on 3rd September 2012 (F.No. 1-4/2011VE). It is a nationally integrated education and competency-based skill framework which
provides for multiple pathways, both within vocational education and between general and
vocational education, to link one level of learning to another higher level and enable learners
to progress to higher levels from any starting point in the education and / or skill system. It
permits individuals to accumulate their knowledge and skills and convert them, through
testing and certification by the competent authorities, into higher level of certification which
could be a certificate or diploma or advanced diploma or PG diploma or a degree in common
parlance. Government of India is in the process of finalizing National Skills Qualification
Framework (NSQF) which will replace NVEQF.The Community College Scheme will lead
upto Advanced Diploma Level only.

CC, in consultation with the local partner industry, will develop the curriculum under the
overall guidance of the Board of Studies and Board of Management in case of colleges.
However, universities may follow their prevailing practice in this regard. While doing so,
they may work towards aligning the curriculum with the National Occupational Standards
being developed by the respective Sector Skill Councils. This would promote national and
global mobility of the learners, as well as higher acceptability by the industry for employment

135

purposes. CCs will also work towards aligning the course architecture and curriculum design
with NVEQF / NSQF.

If the CC forms a part of an Autonomous College declared by UGC, it may follow the normal
process of approval, as applicable, for approval of courses and curriculum in Autonomous
Colleges. If it is not an autonomous college, the skill component of the curriculum may be
got vetted by the appropriate Sector Skill Council. If there is no Sector Skill Council for a
particular discipline, the skill component of the curriculum may be got vetted by the
appropriate local industry consortium. In the case of a university, the normal process of
approval will be applicable.

The CCs are to offer knowledge skill mixed programmes of different durations depending
on the need of the local industry leading to certification at various levels of the NVEQF /
NSQF. The vocational component of these programmes will conform to the NVEQF / NSQF
and the general education component may conform to the university norms. CC may also
offer opportunities for the recognition of prior skill and learning, and bridging the gap in skill
and learning outcomes to facilitate certification in one of the levels of NVEQF / NSQF.

The practical / hands-on portion of the vocational component of the curriculum shall be
transacted normally in face to face mode. However, if due to the nature of the skill to be
learnt, the industry prescribes its acquisition through blended or distance mode, the same may
be followed. In a nutshell, the emphasis shall be on learning outcome and not the input and
processes. The general aspect of the curriculum may be transacted in any mode without
136

compromising on quality. Skill component of the programmes/courses shall be employment


oriented. The CCs shall offer Programmes/Courses in domain areas which have significant
demand in the job market locally.

The CCs will offer credit-based modular programmes, wherein banking of credits shall be
permitted so as to enable multiple exit and entry. This would enable the learner to seek
employment after any level of certification and join back as and when feasible to upgrade
her / his qualification / skill competency either to move higher in her / his job or in the higher
educational system. This will also provide the learner an opportunity to move from vocational
stream to general stream and vice versa subject to fulfilling the entry qualification.
Certification of any level of the NVEQF / NSQF will be the entry qualification for the next
level of the NVEQF / NSQF.

Recognition of Prior Learning (RPL): Currently, Indias Vocational Education Training


(VET) system has almost no system where the prior learning of someone who may have
worked in the unorganized sector for decades is recognized and certified. This is specifically
relevant to the diverse traditional occupations of the people in various parts of the country.
Institutions with requisite experience will be authorized by the certifying body to conduct
assessment for RPL. Objectives of RPL will be twofold: (i) recognition of prior learning or
qualification acquired outside the learning path, and (ii) recognition of credits obtained
through formal learning. This would lead to career progression and skill up-gradation of the
learners as well as engagement of the experienced practitioners as resource persons.

137

Relevance of programmes offered, along with that of the curriculum is important. Therefore,
monitoring, evaluation and updating of the curriculum needs to be done periodically in
consultation with all stake holders, particularly the industry, keeping in view their
requirements and changes in NOSs. Skills Gap analysis report published by the NSDC,
industry associations, Sector Skills Councils, Government agencies etc. should also be
leveraged upon while deciding the course in consultation with the local industry. The CCs
shall incorporate this as a continuous and dynamic process in-built in their system. The CCs
may also offer short-term certificate programmes of various durations to the learners which
would serve the life-long learning needs of the community.

The CCs may like to appropriately use Technology to improve the effectiveness of the
delivery and of courses. Infrastructure and Faculty in Community Colleges. The CCs shall
operate in the identified buildings and premises of existing colleges / universities. They may
use industry sites and those of the approved Skill Knowledge Providers (SKPs) wherever
required for imparting necessary skills. Each CC needs to have adequate laboratory
/workshop facilities for face-to-face delivery of skills and hands-on practice either owned or
arranged through tie up with the partner industry or other institution recognized by the
certification agency.

In the CCs, the faculty would typically consist of a permanent core, and a pool of guest / parttime faculty taken from either the industry or open market for imparting skills. The mix of
permanent / part time / guest / adjunct faculty would be decided by the host institution with
the approval of BoM depending on the local need and availability. The laboratory staff /
instructors will be planned and approved by BoM, as per the need. Remuneration to the guest
138

faculty may be paid under this scheme at the locally prevalent rates, but not exceeding the
rates prescribed by UGC. However, there will be no cap on the total payment to a particular
faculty in a month.

The CC may also have a part time Coordinator for overall coordination of all the courses,
liaisoning with the Industry and other stakeholders. The standard of knowledge and skills of
the faculty and instructors also need continuous updating through appropriate training and
exposure programmes in collaboration with the university, technical education institutes, and
industry.

139

THE CURRICULUM AT INDIAS COMMUNITY COLLEGES


The curriculum at Indias community colleges includes the following components
Chart 3.1

COMMUNITY COLLEGES A BORROWED IDEA BY INDIA FROM USA

As India looks globally for ideas about solving its own higher education gaps related to its
capacity to educate large numbers of youth, as well as availability of relevant and flexible
technical training programs, it will certainly pick and choose the elements from global
models that will work best within its own context. There is no one-size-fits-all model. Even
in the United States, there is great variation in how community colleges are structured and
governed, what types of programs they offer and their approaches to education. However,
140

community colleges can offer lessons to India, and other countries looking at this system,
about what makes the U.S. model successful. Skill development has been an integral part of
education system worldwide be it USA, Germany, Canada, UK, Japan, China and a host of
other countries. Somewhere skill development starts at school level while at other places, it
starts at College level. They are known by different names in different countries. These
colleges provide education above the secondary level and below the degree level with
appropriate skills keeping in view the needs of local industry and community there by leading
to gainful employment and option for horizontal and vertical mobility. While vertical
mobility facilities movement to higher education and research, horizontal mobility creates
opportunity for entry into the employment market with appropriate skills. There is also
flexibility for further skill development. There is no age barrier for entry to a course, thus it
also meets the life-long learning needs of the community. These Colleges are also engaged in
Adult Education and Developmental Studies for academically weaker students.

Community Colleges allow Dual / Concurrent Enrolment to facilitate High school students to
take courses in Community Colleges to shorten the time and lessen the costs to get Associate
degree and later full degree. It is a system created for addressing the learning needs of the
community at low and affordable cost without compromising the quality. In USA, the cost of
tuition to the student in Community Colleges is about one-third the cost in regular
undergraduate degree colleges. One third of the funding for running the community college
comes from Student fees. The Governments at Federal, State, Local levels contribute a major
share towards meeting the budgetary requirements of these Community Colleges. In addition,
endowments from corporate sector, foundations, and money earned from training programs,
etc. also contribute in meeting the financial requirements of the Community Colleges.

141

Community Colleges receive grant from the Government only when it is able to maintain A
grade in accreditation.

Table 4.1
COMMUNITY COLLEGES/VOCATIONAL COLLEGES WORLD WIDE

Sl.No
1.

Country
America

Type of Programme offered

Objectives

These Colleges give preference for These

colleges

provide

admission to the local community, education above the secondary


particularly,

the

marginalized level and below the degree

sections of the population that level with appropriate skills


include

minorities

(non-white keeping in view the needs of

race/ethnicity), uneducated (first- local industry and community


generation

degree

seekers), there by leading to gainful

backward areas (domicile) and low- employment and option for


income (Pell grant status). Strong horizontal

and

vertical

college-industry interaction leads to mobility.

While

vertical

regular updating of the curricula. mobility facilities movement


Skill-based courses have essentially to
hands on practice and experience.

higher

education

and

research, horizontal mobility


creates opportunity for entry
into the employment market
with appropriate skills.

2.

Australia

Today, courses are designed for The majority of colleges by


142

personal

development

of

an the late 20th century had also

individual and/or for employment become Registered Training


outcomes.

The

educational Organisations; recognising the

programme covers a variety of need to offer individuals a


topics such as arts, languages, nurturing,

non-traditional

business and lifestyle; and are education venue to gain skills


usually timetabled to be conducted that would better prepare them
in the evenings or weekends to for

the

workplace

accommodate people working full- potential


time.

There

are

job

openings.

Community Qualifications

Colleges located in metropolitan, undergraduate

and

such
degrees

as
and

regional and rural locations of higher are not offered at


Australia.

Community Colleges, though


some Community Colleges do
offer Certificate and Diploma
courses.

3.

Canada

Canada Community Colleges are Most of the colleges began in


educational institutions providing the mid-1960s as a response
higher

education

education,

and

granting

tertiary education and training for the

Certificates, then emerging baby boom

and Diplomas. Associate's degrees generation, and to provide


and Bachelor's Degrees are granted training to the post second
by

universities,

but,

in

some World

War

courses of study, there may be an immigrants

II
and

European
newer

agreement between colleges and immigrants from around the

143

universities to collaborate on the world, that were starting to


education requirements toward a enter the country.
degree.

Many programmes are still


economically based, as to the
needs of the area, province
and country.

4.

Hong Kong

In

Hong

Kong,

vocational Providing

Training

to

education is usually for post- Vocational fields as stated


secondary 3, 5 and 7 students. The
Hong Kong Institute of Vocational
Education (IVE) provides training
in nine different vocational fields,
namely: Applied Science; Business
Administration; Child Education
and

Community

Construction;

Services;

Design;

Textiles

and

Clothing;

Service

and

Tourism

Printing,
Hotel,
Studies;

Information Technology; Electrical


and Electronic Engineering; and
Mechanical,

Manufacturing

and

Industrial Engineering.
5.

Japan

Japanese vocational schools are Train the students in acquiring


known as senmongakk. They are skills after finishing their high
part of Japan's higher education schools
144

not

necessary

system. They are two year schools students graduate from high
that many students study at after school.
finishing high school (although it is
not always required that students
graduate from high school). Some
have a wide range of majors, others
only a few majors. Some examples
are computer technology, fashion
and English.
6.

Korea

Vocational

high

programmes

schools

in

agriculture,

five

offer By

fields: employers

technology

engineering,

/ acquire

and

In

home

principle,

all

students in the first year of high


school

(10th

grade)

follow

common national curriculum, In the


second and third years (11th and
12th grades) students are offered
courses

relevant

to

their

specialisation.

In

some

programmes,

students

may

participate in workplace training


through

the

with

local

students

can

relevant

skill

commerce/business, requirement to be employed

maritime/fishery,
economics.

working

co-operation

145

between

schools and local employers.


7.

Mexico

Mexico offered three types of Train the people both in


programs 1."Training for work" subject of theory and practice
(formacinpara el trabajo) courses so that they can easily
at ISCED 2 level are short training employed in the organisation
programmes, taking typically 3 to 6
months

to

complete.

The

curriculum includes 50% theory


and 50% practice. After completing
the programme, students may enter
the labour market. This programme
does not provide direct access to
tertiary
complete

education.

Those

lower

who

secondary

education may choose between two


broad options of vocational upper
secondary education at ISCED 3
level. Both programmes normally
take three years to complete and
offer a vocational degree as well as
the baccalaureate, which is required
for entry into tertiary education.

2. The title "technical professional


baccalaureate" (profesionaltcnico
146

bachiller) is offered by various


subsystems though one subsystem
(CONALEP) includes two thirds of
the

students.

The

programme

involves 35% general subjects and


65% vocational subjects.

3. The programme awarding the


"technological

baccalaureate"

(bachilleratotecnolgico) and the


title

"professional

technician"

(tcnico professional) is offered by


various subsystems. It includes
more general and less vocational
education: 60% general subjects
and 40% vocational subjects.
8.

New Zealand

New Zealand is served by 39 To set standards and aggregate


Industry

Training

Organisations industry opinion about skills

(ITO). The unique element is that in the labour market.


ITOs purchase training as well as
set

standards

and

aggregate

industry opinion about skills in the


labour market. Industry Training, as
organised by ITOs, has expanded
from apprenticeships to a more true
147

lifelong learning situation.


9.

Turkey

Students in Turkey may choose To train them suitably to


vocational

high

completing

schools

the

compulsory

after industry requirement

8-year-long

primary

education.

Vocational high school graduates


may

pursue

year-long

polytechnics or may continue with


a

related

tertiary

degree.

Municipalities in Turkey also offer


vocational training.
10.

Netherlands

Nearly all of those leaving lower To enter into the employment


secondary

school

enter

upper market

secondary education, and around


50% of them follow one of 4
vocational

programmes;

technology,

economics,

agricultural,

personal/social

services & health care. These


programmes vary from 1 to 4 years
(by level; only levels 2, 3 and 4
diplomas are considered formal
start

qualifications

for

successfully entering the labour


market).

148

Table 4.2
POSSIBLE AREAS FOR COLLABORATION BY COMMUNITY COLLEGES OF
FOREIGN COUNTRIES WITH INDIAN STATES / UTS / INSTITUTIONS /
COLLEGES

Name of

Name of the

Trades/vocations in

Nature of

the

Institute

which country wants

collabor

Country
Canada John

tie-up
AbbottBio-Pharmaceuticals,

College

healthcare

Name of the Trades in which


States/UTs/Coll collaboration

ation
eges/Institution is sought from
Teacher training,Punjab, Uttar
Teacher training,
s with whom
the
curriculum
Pradesh,
curriculum
development,
Karnataka,
Teacher
training,
development,
exchange
of
curriculum
faculty

&Tamilnadu,

Teacher training,
curriculum

Sikkim, North
East Region
Durham College

Skilled

Teacher

Teacher
training,
development,
curriculum

Not specified

development,
Not specified

Not specified

Not specified

trades/Construction,
training,
electrical,
welding,Joint
electrical,
Loyalist College

renewalprogrammes

Welding, teacher training,Not specified


energy,
science
&
personal support worker,

149

University

ofReopen to all areas ifProgramme

Fraser Valley

there ITis support fromdevelopment,

Kwantlew

India
Trades,

Polytechnic

healthcare

business,curriculum
Teacher
training,

Not specified

Not specified

Karnataka
Assam

Trades, business
Waste
management,

governance,
curriculum

Algonquin CollegeHospitality & tourism,Teacher


construction

&

trades,training,

automotive, informationcurriculum
communications

West Bengal
,
Kerala

Curriculum,
environmental
Electrical,
partnership
plumbing
Various
Hospitality,

Punjab,
Manipur

tourism,
MSS College ofEngineering,

development

Engineering
manufacturing
Raibagh
Civil
technology,
business,working within
engineering,
Germany SiemensLab setup & technicalLab setup &BVVS
Lab
setup &
health,
manufacturing,Industry
Sitrain(Training trainings
technical
Polytechnic
AmbedkarInstitu Training courses
trainings
Karnataka,
Centre
of
te of Technology
Siemens)
TESI-Foundation IT & BiT (Businessin

Not specified

Not specified

Not specified

(Educational
TESI-Foundation, IT & BiT (Business inTeacher

Andhra Pradesh,Vocational

Koln, Germany

Jammu,

Trade)inculcating

trainingall

managerial skills

Karnataka,
& placement
care,Trainthetrainer, Delhi,
Bihar,Healthcare

Heimerer

Geriatric

Academy

occupational

Any
subjects
inTeacher
nursing, podiatristtrave

healthcurriculum

Move(Internationa vocational education


l

Marketing

Vocational

training

training,

of
curriculum
&training (Engineering to
development,

150

Tamil Nadu
Bihar,

Assam,Not specified

Tamilnadu,Uttar
Pradesh

Association

ofAll

Colleges

U.K

Teacher

Madhya

training,

Pradesh,

Sunderland

Hospitality,

business,Teacher
curriculum

College

welding,

plumbing,training,

electrical,

construction,curriculum

engineering,

healthcare,development

hair & beauty, contactemployability


centre,

automotive,skills, train the

High bury College it/computing,


Health-social

travelcare,
&trainer,
Team

hospitality-catering,

Multiple courses

Indian PlumbingPlumbing
Himachal
Sector

Skills

Post
Council GraduateTravel & tourism
Government
Govt.First
College(Sec-

commerce,
College
accounting
Taj
Training,
&Centre
for PostHospitality,
Grade

management,

cleaning,

automotive- engineeringcurriculum
construction,

creative-development,

media, teacher
Training
Construction

Community

hospitality ,early years,

teacher training, health&


Colleges, London
College
All
vocational
areasTeacher
social
care,
English
Powys/Colleges

U.S.A

automotive
Maynaguri

apprenticeships College(West
St.Anthonys
college
College
infrastructure/
(Meghalaya)
crafts,Not specified Not specified
budget/BOS

Hackney

including health&

training-all

Punjab

social care, engineering,development


subjects,

University
(Chandigarh),

construction,

University

sport,

Business,

Creative
media/drama,
Health
care,
curriculum
college
Not specified

Not specified

of

arts,media,hospitality

Mumbai,

Grossmont

Health

Chamber
ofNot specified
Pondicherry,

College

training of faculty

care

fields,Curriculum
development,
teacher
151

Karnataka

Foothil

Computer science

Teacher training Raibagh

Not specified

Polytechnic
Citizens FirstInc. Community

services,Partnership

nursing ,healthcare

Renuka
Govt.

Sugars
Health sciences

Polytechnic
Education
(Jalandhar)
Department
Teacher trainingChandigarh

Northern VirginiaBusiness(finance,
Community

marketing,

College

management etc.),IT (Alltraining,

Kentucky
(Washington

Advanced
aspects),

Community

automotive
computerIndustry
curriculum

Over100programsof

College(MD)

study,

development,

College

Assam

technology,industry

Bihar
nursing & allied health,partnership,
Healthcare,
Train the trainer,Pondicherry
construction
trades,community
entrepreneurship
faculty
University

College-Coleman
Chemeketa
Small
Community

Gujarat,
Not specified
Karnataka,

Faculty training,Chhattisgarh
standards,
Madhya
including:curriculum

Biotechnology,

Community

All course

businessexchange,
Curriculum

Community
Directorate

management,

development,

entrepreneurship,

teacher training Education


National

automotive,

Manufacturing

endorsed

Montgomery
College System

Houston

Nursing

accounting,& administrator(Punjab)

&manufacturing

automotive

&

advanced

manufacturing

Technical

cyber

security,
bioHospitality,
retail
store,
Computer
construction
TBD
science, welding,

ofSmall

business

management
Entrepreneurship

/s mall business
Institute of Food
Pondicherry
Small business
management
university
Community
College,

152

Welding
IT,

management

St.Josephs

Small

College

management

Not
specified
(Jakhana,

Not specified

Bronx Community

Teacher

College

training, faculty

Gateway
Community

Advanced manufacturing,Curriculum
development,

Not specified

Not specified

Assam,

Hospitality

&energy/communications, development,

Technical
design,developing
Kapiolani College instructional
Hospitality, culinary,
Teacher

College-University
Health science, business The
trainer,Tamilnadu,
Community
training, train
of
Hawai
Tidewater

Maritime

Community

mechatronics,

College

Andhra

Hospitality

development,

UttarPradesh

Hospitality

technology,community
Curriculum
applieddevelopment

engineering technologies,industry

ship
Shoreline
Community

Zealand

repair,

Health science

curriculum

apprenticeship sin trades,credentialing

New

business

nursing,skill

Manipur[Higher Applied
,
&Technical
Govt.of

technologies
Not specified

Karnataka
(Departmentof
Instituteof

duration, small businesscredentialing, Technology


Overall assessment ofAssessment ofHigher
development & retailcollege
assets needs, facultycurrent assets ofEducation

Not specified
Not specified

Polytechnic

training, licensing of
institutions
,(Uttrakhand),
Agriculture, agribusiness Trainthetrainer, Maynaguri
Agriculture,
teacher training,AndhraPradesh
consultancy
College(West horticulture
Assam
Agriculture,
Bengal),
Manipur
Agriculture
horticulture
Project
managementInternational
Uttar Pradesh,Dairy
,food,

International

consultancy

Taratahi
Agricultural
Training Centre

New
Zealand(PINZ)Ltd
.

servicesaccreditation ofMadhya

agriculture

related to establishmenttraining

Pradesh,

creative

of community collegesprograms

Nagaland,

industries(fashio

including

Punjab

strategies
153

Source: University Grant Commission 2013

STATUS ON IMPLEMENTATION OF COMMUNITY COLLEGE SCHEME IN


INDIA

In order to increase the employability of the students pursuing higher education, a concept
note was presented in the conference of the State Education Ministers held in February, 2012.
The concept to integrate skills in higher education was unanimously accepted and a group of
State Education Ministers was constituted to suggest the ways and means to achieve this
objective. The report of the Committee on Concept and Framework of Community College
Scheme was presented by the Chairperson of the Committee in the conference of the State
Education Ministers held in June, 2012, which accepted the report and endorsed the
recommendation to operationalise 200 community colleges on pilot basis from the academic
year 2013-14 from the existing colleges/polytechnics, on the patterns of community colleges
working in various parts of the world.

Based on the Concept and the Framework of the Community College Scheme as suggested
by the Committee of State Education Ministers, Government of India decided to establish 200
community colleges on pilot basis from the academic session 2013. This was communicated
to the States/UTs Education Ministers vide letter dated 3.7.2012 of the Human Resource
Development Minister, Government of India with a request for a time bound action inter-alia
with regard to identification of Nodal Officer in the States/UTs, identification of host
institutions i.e. colleges/polytechnics, identification of industry/trade/vocations/activities etc.
154

preparation of curriculum, training of teachers/trainers, constitution of states/UTs monitoring


committee.

With a view to make the skill acquired by the learners acceptable nationally, the curricula and
system of certification has to be done against a national standard. In order to facilitate
offering of nationally standardized skill related programmes, the Government of India
(Ministry of Human Resource Development) has already notified the National Vocational
Education Qualifications Framework (NVEQF) on 3rd September 2012 (F.No. 1-4/2011- VE)
which is available at http://mhrd.gov.in.voc_eduu. It is a nationally integrated education and
competency-based skill framework that will provide for multiple pathways, both within
vocational education and between general and vocational education, to link one level of
learning to another higher level and enable learners to progress to higher levels from any
starting point in the education and / or skill system. It will permit individuals to accumulate
their knowledge and skills, and convert them through testing and certification by the
competent authorities, into higher level of certification, which could be a certificate or
diploma or advanced diploma or PG diploma or a degree in common parlance.

The Concept and Framework of Community Colleges scheme was also discussed in the
conference of Vice Chancellors of Central Universities held on 22.6.2012 and subsequently in
the Retreat of Vice Chancellors in Chandigarh on 5-6, August, 2012 with regard to flexible
education system wherein amongst others offering of choice based vocational courses from
academic session 2013 at all levels with flexibility to exit and re-entry to the students, linking
of NVEQF to programmes offered within the university system, integration of skills with
general higher education courses by offering short duration skills oriented courses etc. were
155

discussed and unanimously endorsed. Proposals to this effect have been sought for from the
Central Universities.

A number of national and regional level seminars/workshops were held in New Delhi,
Lucknow, Mumbai, Bengaluru, Hyderabad, Itanagar and Guwahati to sensitize the
stakeholders who would ultimately play key role in the implementation of the Community
Colleges Scheme. In pursuance of this capacity building exercise, a two-day international
conference was also organized in New Delhi on 6th and 7th February, 2013 to provide an
opportunity to learn from the experiences of the Managers of the CCs across the world, to
identify areas of collaboration and forge partnership for national and international
collaboration. In this conference, the Managers of the Community Colleges (CCs) and high
officials of the relevant industries from Australia, Canada, Germany, New Zealand, UK and
USA as well as from our own country participated. In all approx. 500 participants attended
the Conference of which 90 were foreign delegates. The conference, inter-alia, discussed
issues on demand-supply mismatch of the skilled manpower, requirement of skilled work
force by the industry, design of model courses with multiple entry and exit options to the
learners in different vocations based on the needs of the community, thrust on hands-on
practical training and training of trainers/teachers. It also provided opportunity for
networking between the foreign Community Colleges/institutions and their Indian
counterparts with a view to identify areas for national and international collaboration. Based
on the information furnished by Indian and Foreign participants, the networking information
has been compiled country-wise (who participated in the conference-USA, UK, Australia,
Canada, New Zealand and Germany) [Form A& Form B]. The compiled information gives
the details about the proposals of the community colleges, names of course and possible areas
of collaboration/networking with the community colleges of USA, UK, Australia, Canada,
156

New Zealand and Germany. The above details of collaboration have already been shared with
the concerned High Commission/Embassy of the above mentioned 6 foreign countries and all
Principal Secretaries of the concerned States/UTs. Ministry of Human Resource Development
is vigorously following the development in this regard.

The Government of India (MHRD) and the Government of UK have also signed a MoU on a
framework for development of Community Colleges under UK India Education and Research
Initiative (UKIERI). The duration of MoU will be w.e.f. 20.02.2013 to 31.3.2016. One of the
activities mentioned in the MoU is developing community colleges. This activity will
facilitate development of links between selected community colleges of India and those in the
UK. A maximum of 25 partnerships will be supported over the duration of this MoU by the
UKIERI.

The model scheme on community colleges as conceptualized by MHRD has been shared with
UGC and AICTE for funding them to make them functional from the current academic
session 2013-14. UGC would fund the community colleges hosted in a college while AICTE
would fund the polytechnics hosting the community college.
140 financial proposals (82 polytechnics and 58 colleges) from 27 States/UTs have been
received in the Ministry, so far. They have been forwarded to UGC and AICTE respectively
for their consideration to release financial assistance to enable them to implement the Scheme
from this current academic year.

157

Latest reminder to all other States/UTs including Vice-Chancellors of the Central Universities
who have not so far submitted their financial proposals have also been issued on 16.05.2013.

SPREAD OF COMMUNITY COLLEGES ACROSS INDIA

The community college movement has become a national phenomenon, spreading across of
India. Between 1996 and 2013, 317 ICRDCE-managed community colleges were launched in
19 states across India.

Table 4.3
NUMBERS OF ICRDCE-MANAGED COMMUNITY COLLEGES IN INDIA

NUMBER OF COMMUNITY
SL.NO.

STATE
COLLEGES

1.

Tamilnadu

215

2.

Karnataka

25

3.

Kerala

13

4.

Jharkhand

13

5.

Andhra Pradesh

10

6.

Maharashtra

7.

Orissa

8.

Madhya Pradesh

6
158

9.

West Bengal

10.

Pondicherry

11.

Uttar Pradesh

12.

Chhattisgarh

13.

Haryana

14.

Gujarat

15.

Himachal Pradesh

16.

Punjab

17.

Assam

18.

Jammu & Kashmir

TOTAL

317

Source: Xavier Alphonse, S.J., Director, Indian Centre for Research and Development of
Community Education The Indian Community College System: Inspiration from Community
Colleges in the United States, PP.11

RECENTLY APPROVED COMMUNITY COLLEGES BY UGC

The students interested in pursuing skill-based courses after class 12. The University Grants
Commission (UGC) has approved 98 community colleges across India which will offer skillbased courses ranging from six months to two years from 2014-15. Of these, 16 are from
Maharashtra the largest among states. Maharashtra is followed by Tamil Nadu (13), Assam
(14) and Kerala (11). Of the 16 community colleges in the state, one is affiliated with
Mumbai University (Kelkar College, Sindhudurg), five with Pune University, three with
159

Nagpur, two with Marathwada, three with Shivaji University (Kolhapur) and two with Sant
Gadge Baba University in Amrawati. The UGC received 320 proposals from across India.

The present list of colleges is part of the UGC's 100 community college scheme announced in
the 12th five-year plan with the aim of offering nationally standardised and acceptable skillbased programmes. Recently, the UGC gave its nod for B Voc courses in the country by
approving 92 colleges to start the three-year vocational degree courses from 2014-15.
Maharashtra got the lion's share there too with 28 colleges. Both the schemes are set to
change the face of higher education in the country.

The community colleges will be an extension of existing colleges in rural and tribal areas
which will function in collaboration with the industry. They will offer six month, one and
two-year courses (certificate, diploma and advanced diploma), all accredited and taught by
core and guest faculty from the industry. The curricula will be prepared by varsities and the
UGC will monitor the infrastructure of these colleges. Each course will be restricted to 60
students. Automobile management, food processing, horticulture, healthcare, cast iron
foundry, hospitality and tourism, power plant, chemistry, information technology are some of
the courses that students can opt for in Maharashtra. However, UGC has sanctioned only one
or two courses for each college for which it will grant Rs1 crore in two years. At present, the
universities do not offer these courses. More colleges and courses could be approved in the
next phase.

160

THE IMPACT OF THE COMMUNITY COLLEGE SYSTEM

The community college movement has empowered disadvantaged groups in India, achieving
a higher gradation of educational standards and resulting in alleviation of poverty. A profile
of 85,759 students attending 230 community colleges from different parts of India reveals the
following groups students benefited from community colleges:
70 percent women
88 percent from socially disadvantaged groups
88 percent economically poor (monthly family income is below 3,000 rupees/$54)
95 percent from educationally weaker sections, dropouts etc.

A breakdown by religion shows that 58 percent is Hindu, 33 percent is Christian, 8 percent is


Muslim, and 1 percent is other religions (e.g., Buddhist, Sikh and Janism). There are 466
disabled students who have passed through this system. Approximately 2,680 industries have
linked up with 152 community colleges, helping to ensure that after graduation; about 75
percent of the students are employed. In most cases, their family income has been doubled. It
has led to poverty alleviation through income generation. The concept has become a secular
one transcending religions, castes and languages. It is truly a nation-building and capacitybuilding exercise.

161

DIFFERENCES BETWEEN THE COMMUNITY COLLEGE SYSTEM AND OTHER


VOCATIONAL SYSTEMS IN INDIA

The Indian community college system differs from other forms of vocational education in
the country (e.g., apprenticeship training, the plus two vocational system in schools,
industrial training institutes (ITI), community polytechnics and the vocationalization of firstdegree level education at the collegiate level) in the following ways:
Focuses on the employability of the individual
Aims to develop competencies and certify students simultaneously
Promotes strong industry-institutional linkages by equipping students with skills that are in
demand by local industries.
Emphasizes the teaching of life, communication and English skills
Lessens the burden on higher education
Is an evolving a system of evaluation and assessment of personal, social, language,
communication, work and creative skills.

COMMUNITY COLLEGES-CHALLENGES AND CONCERNS

A UGC note on community college states India's population is growing at 2 per cent annually
whereas unemployment is around 4.6 crore; it is likely to grow to 5-6 crore in 8-10 years. To

162

provide employment to them is a daunting task as these numbers are more than the
population of countries like France, Italy and UK.

In terms of demographics, almost 35 per cent of Indians are below the age of 15 while 18 per
cent are in the 15-24 age group. The median age in India is 24 years, which makes it one of
the youngest populations in the world. This in itself throws up huge challenges in terms of
demands on the education and employment systems. The Mumbai University started five
community colleges (not under the UGC scheme) along with Coca Cola in 2012-13.
However, none of the colleges could get a single student in the first year due to functional
delays. In 2013-14, however, they have got a decent response with approximately 80 per cent
students.

By July 2011, more than 540 community colleges in different parts of the country registered
under the IGNOU Community College Scheme and approximately 50,000 students were
enrolled in 2,358 different programs of study. In addition, the existing community colleges in
Tamil Nadu have an impressive record of 75 percent job placement. Despite these impressive
figures, there are major challenges, including the fact that due to the suspension of IGNOU
scheme many students did not receive examination results, certifications and diplomas. This
has cast a shadow over the implementation of the community college system in India and a
committee is currently investigating the IGNOU Community College Scheme.

In order to give credibility to the community colleges, the government should take the issue
of the existing community colleges under the IGNOU community college scheme seriously.
163

While the government has taken note of the need for a community college system in India,
there is no clear implementation plan. An autonomous agency is needed to act as a link
between the government and the community to propagate and implement the community
college scheme.
While there are several elite institutions in India, such as the Indian Institutes of Technology
(IITs) and several colleges, the existing higher education infrastructure is vastly inadequate
for a populous nation like India. Today the IITs, for example, serve less than 0.1 percent of
the needs of engineering education in terms of the number of students enrolled. At the other
end of the spectrum, the Industrial Training Institutes (ITIs), train high school graduates in
vocational skills pertaining to manufacturing; however, education of conventional trades,
such as carpentry and plumbing, remain in the domain of traditional apprenticeships. Little
thought have been given to professionalizing trades in the establishment of nationwide
standards and skills-based training programs.

Several efforts, such as Shrameek Vidyapeeth (Workers School), which focused on skills
needed in the local areas, and a skills-based training program developed by Tata Electric &
Locomotive Company (TELCO), known today as Tata Motors, have had positive results, but
most have been largely abandoned as a college/university education was deemed more
rewarding (more valued culturally). Today, most Indians work in what is known as the
unorganized sector small businesses and sole proprietorships where they practice skills
acquired on their own, usually by apprenticing themselves informally to more experienced
tradesmen (who had acquired their skills in a similar fashion). This pattern yields a wide
variation in knowledge and skills, which neither produces well-trained workers nor provides
any opportunity for upward mobility.
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A 2009/10 survey by the National Sample Survey Organization (NSSO) in India reported that
just 2 percent of Indias youth and only 7 percent of the whole working population have
received vocational training. These stark numbers are telling given the pace of intended
progress in India. Any modern society located in the Information Age requires sophisticated
skills beyond what is learnable in high school. On the other hand, a traditional three- or fouryear college degree is neither affordable nor necessary for the majority of Indias 1.2 billion
people, based on the type of work they end up pursuing. Indeed, legions of Indians acquire
college degrees (because Indian culture assigns intrinsic value to formal diplomas), but few
practice trades related to their formal qualifications. The acquisition of useful trade skills
would help lift hundreds of millions out of abject poverty, providing hope, as well as, a
powerful boost to the economy.

165

CAUTIOUS APPROACH IS REQUIRED FOR EFFECTIVE IMPLEMENTATION

There is significant economic, industrial, cultural and demographic variety across India and
the introduction of a community college model therefore, should proceed cautiously. The
experiment ought to start in locations with high potential and then be replicated and refined in
other locations, and eventually in each state of India. Most importantly, it should strive to
adapt to local conditions everywhere.

ADVANCING CHANGES AND NEW DIRECTIONS STEP BY STEP

For new directions for community colleges in India to move in, one must look inward, at the
Ministry of Human Resource Developments plan to pilot 200 community colleges in 2013,
there are four specific strategies that need to be considered as the movement continues to
unfold:

First, community colleges need to meet standards as certified by IGNOU Community


College. This scheme should be replicated or adapted to meet the needs of the students in
various states across India, in order to support a vision that can lead to expanded employment
and a meaningful path to the university.

Secondly, ICRDCE needs to expand its strategic planning so that decisions on community
college placement are informed and driven by data.
166

Third, Indias interest in the U.S. model, represented by development projects like
Montgomery Community College in Maryland and Shoreline Community College in
Washington State should continue, but in coordination with other models from other countries
so that the richness of others is visible. (It is noteworthy to highlight Indias interaction with a
variety of community college global counterparts, including the current MOU with the UKs
Colleges of Further and Higher Education) (IndiaEducationReview.com, 2013).

Fourth, governance must be strengthened to encourage leadership and collaboration at the site
level. Such a move helps to ensure ownership of decisions made and while at times
cumbersome and slow, is at the cornerstone of success across U.S. community colleges.

DEVELOPMENT WORK MUST BE A MUTUALLY BENEFICIAL PARTNERSHIP

The international development community and higher education institutions working in this
capacity now recognize that in order to be successful, development work must be a mutually
beneficial partnership, not simply a transfer of knowledge, supplies or technology. Justifying
an institutions participation in such a project calls for the institution to demonstrate to its
own stakeholders how the project benefits the institution and meets its mission and vision.

SKILLED FORCE DEMAND-SUPPLY MISMATCH


167

In vocational education in India is accentuated by an inherent lack of understanding from


prospective students and families who do not see vocational education as a socially and
economically rewarding pathway. The community college model in India has the potential to
free the country from the structural constraints of polytechnic schools and begin a new era of
educational access and employment aspirations. However, this would require massive shift in
alternatives available to students and how they perceive and experience them.

PUBLIC PRIVATE PARTICIPATION INVITED

In addition to policy changes and enhanced public-private partnerships, there are additional
areas that need reform.
First, there must be more research to understand the students who are most likely to be
attracted to the community college.
Second, successful exemplars of community colleges need to be established and supported,
especially through partnerships with American community colleges, to substantially improve
the caliber, capacity and competitiveness of vocational education in India.
Finally, an aggressive and transformational marketing campaign that clearly explains the
differences and benefits of community colleges should be co-developed with industrial
leaders.

CHAPTER 3.4
168

CONSTRAINTS IN INSTITUTIONALIZING PRIVATE SECTOR PARTICIPATION


IN

HIGHER

EDUCATIONAL

SYSTEM

TO

DEVELOP

EMPLOYABLE

WORKFORCE.

Education is vital to the human resources development and empowerment in the stages of
growth of a nation. In any education system, higher education encompassing Management,
Engineering, Medicines etc., plays a major role in imparting knowledge, values, and
developing skills and, in the process, increase the growth and productivity of the nation.
While the Government is committed to providing primary education and certain
facilities/subsidies for higher education, given the higher cost involved in the establishment
of higher education institutes, the entry of private sector is witnessed to run educational
institutions.

Various discussions about the importance of education states that the schools have become
the most important means of transforming wealth of knowledge and skills from one
generation to another. However, the role of institutions becomes more challenging in the
modern world with innovations and technological developments. Investment in education and
educational institutions should be viewed as an investment for economic prosperity.
Investment in human capital, lifelong learning and quality education help in the development
of society and nation.

ISSUES AND CHALLENGES


169

The quality of infrastructure for supporting research activity is somehow better in the central
universities, IITs and IIMs and some select government-funded institutions. In the aggregate
sense, in a country with 400 plus universities the production of knowledge is inadequate by
any international standard. For a meaningful integration with the emerging knowledge
economy, the higher education sector is confronted with many challenges. The government
has of late emphasized the salience of knowledge and development of human resources, and
initiated many policy measures to overhaul the system. The question is how good are these
measures in the context of the prevailing system and effectiveness of implementing the
programmes. The problem is aggravated by the stagnancy in the budgetary allocations by the
governments; the existing ones are suffering from poor governance.

The issue is why even the private sector institutions are failing to impart good quality
education when the advocates of market and the private sector dominate policy-making;
though privatization has helped in major expansion of technical education. Since the last
couple of years, there has been much hue and cry about quality in Indian higher education.
Not only the students and the academicians but also media, politicians and the policy-makers
have all expressed concern about the poor quality of education in higher education sector. The
bills which are being considered by the government, almost all of them, talk about quality
directly or indirectly. In this situation, improvement in quality is an imperative and quality
assurance is the first step in this direction.

170

In India, there is a wide variety in terms of quality across higher educational institutes. On the
one hand, there are Centres of Excellence such as Indian Institutes of Technology (IITs), and
on the other are the institutes that have failed to maintain even a minimum standard of
quality. Not only is there a wide gap between the world and Indian averages of quality, but
there also exists a vast disparity between the institutions across India. The reasons for this
low quality are multifaceted and interlinked poor governance being the main reason.
Resource constraints and poor infrastructure further worsen the situation. Many private
institutes, especially in the field of professional education, provide low-quality education as
they are mostly interested in cutting cost and making profits. (Chattopadhyay 2009). A
corrupt and ineffective regulatory system aggravates the problem as many educational
institutes are engaged in subversion of duties and in maximising the benefits that accrue to
the authorities without any effort to improve the quality of education. Also, there has been an
age-long trade-off between excellence and inclusion (Velaskar 2010).

Since the quality of education largely depends on that of the students and teachers, an
institution may choose to be extremely selective and only offer seats to brainy people in order
to maintain its quality. This selective competition may make HEIs more hierarchical and
exclusive (Clotfelter 1996; Winston 1999). While we consider the fact that in India only 15
per cent in the age group of 1823 years enter into a college, excellence appears to be an
elite term. However, maintaining a minimum quality in all the HEIs is imperative. The
problem is to appropriately define and quantify for effective monitoring and enforcement of
minimum quality of education. This is critical because unfair practices and poor quality of
education can ruin the entire life of students and affect their families, societies and the nation.
Keeping this problem in mind, quality assurance mechanisms in higher education were
adopted in India and at present the popular agencies are:
171

(a) National Assessment and Accreditation Council (NAAC) under the University Grants
Commission (UGC);
(b) National Board of Accreditation (NBA) under the All India Council of Technical
Education AICTE);
(c) Accreditation Board under the Indian Council of Agricultural Research (ICAR).
Among these, the two most popular accreditation agencies are the NAAC and the NBA.

The most important objective of any educational institution is to equip the students with
ethical values besides imparting knowledge and skills. But today globalisation and the
technological development have led to the necessity of the Public Private Partnership (PPP)
in the higher education institutions. This Industry Academia Interface does not seem to be an
easy task since there are various controls pertaining to the same. Some of the major problems
are cited below.

DEMOGRAPHIC CONTOUR

According to the National Commission on Population, it is expected that the age profile of
population of India will experience changes in the coming years. By 2016, approximately 50
per cent of the total population will be in the age group of 15-25 years. It is projected that a
vast population would enter the working age group in the next 15 years, leading to increase in
productive activities and also savings rate as witnessed in Japan in the 1950s and China
1980s. In other words, there would be a tremendous rise in the number of employable work
172

force in the job market which would demand commensurate investment in education. In the
literature, Demographic Dividend refers to population lump in the working age group of 1560 which can be described as a major advantage for pushing the economic growth. It suggests
that the major challenge before India is how this advantageous demographic profile can be
harnessed to reflect in the macro-economic parameters of the country.

Given the demographic profile advantage, the average Indian will be only 29 years old in
2020 as compared with 37 years for China and the U.S., 45 years for West Europe and 48
years for Japan. The global demographic profile, in future, would, therefore, lead to shortage
of productive workforce globally but India will experience a surplus. We need to realize that
this advantage for us will not be automatically transformed into higher economic growth.
Strategic interventions and foresight in terms of encouraging investments in education and
skills development by policy makers are needed to reap maximum benefits of demographic
dividend.

EXPENDITURE ON EDUCATION

In terms of expenditure incurred on education, particularly on higher education, during the


year 2010-11, the government spent around Rs.15, 440 crore which is about 85 per cent of the
revised budget estimates for the year. The recent 66th round of NSSO survey reveals that
between 1999 and 2009, spending on education in general jumped by 378 per cent in rural
areas and 345 per cent in urban areas of the country. The survey further reveals that spending
on childrens education underlines sharp increase 63 per cent for rural and 73 per cent for
173

urban families. However, if we measure the expenses on education as a percentage to GDP,


India lags behind some developed/ developing nations. We recognize that the gap in
investments in education in India can perhaps be filled by private sector playing a crucial
role.
Table 5.1
EXPENDITURE ON EDUCATION

Spending on
Country

Spending on

Education as a

Country

Education as a %

% of GDP

of GDP

Switzerland

5.8

South Africa

5.3

U.S.

5.7

Thailand

5.2

France

5.6

Chile

4.2

U.K.

5.3

Brazil

4.2

Malaysia

8.1

India

4.1

Mexico

5.3

Russia

3.8

Note: Government education expenditure as a percentage of GDP (2000-2002).


Source: United Nations Human Development Programme.

174

PPP MODEL

The Government is making efforts to improve the education system in terms of various
parameters like GER, quality, investments, infrastructure, etc. But we need to recognize the
constraints for the Government to make a big turnaround with huge investments in education.
The private sector has started playing a distinctive role in improving the education system in
India. The possibility of public private partnership (PPP) model in education is not only
going to reduce the burden of the Government in incurring high cost of providing basic
infrastructure facilities but also lead to construction of state of the art buildings, labs,
libraries, hostels etc. Besides, the collaborative efforts between universities/colleges and
corporate would help in organizing joint research and development, students getting exposure
to industrial activities in terms of internships, corporate training during vacations and issuing
of certificates by corporates for attending internship/training etc. and, thus, facilitating in
image building and branding of institutions and making the students more job-worthy.

GROSS ENROLMENT PATTERN

At present, in India, there are about 1.86 crore students enrolled in various streams of higher
education including Business Management. Despite the large number of students studying in
various streams, we have not seen any major shift in the productivity as skills and talents are
deficient to support economic activities and, hence, there is a serious concern on
employability of these educated persons. The gross enrolment ratio (GER) for higher
education in India was 12 per cent in 2010. However, the enrolment level varies across states.
175

We also need to recognize that our enrolment level is far below several other countries. For
example, according to a Report, GER is 23 per cent for China, 34 per cent for Brazil, 57 per
cent for U.K., 77 per cent for both Australia and Russia and 83 per cent for the U.S. In this
context, the attempt of Government authorities to increase the number of students by 2020 so
as to reach GER of 30 per cent becomes a big challenge. No doubt, the launch of new
institutes like JRE School of Management can play a catalyst role in addressing the challenge
of increasing GER in India. As a positive step, for the remaining duration of Eleventh Five
Year Plan, the Government has taken initiatives to incentivise States for setting up/expansion
of existing educational institutions, establishment of 8 universities, expansion of colleges to
achieve a target of 1 lakh students enrolment and schemes for setting up model colleges in
regions which are below national average of GER.

CAPACITY UTILISATION

Another challenge to be addressed in strengthening the Indian education system is to improve


the capacity utilization. For example, a recent study on capacity utilization in India for higher
education indicates that the capacity utilization in case of MBA is about 57 per cent in
Maharashtra and 72 per cent in Haryana. In case of certain states, there are a lot of unfilled
seats in institutions. On the one hand, we need to improve our GER, and on the other, we
need to ensure that institutions/ colleges/schools created for providing higher education fully
utilize the capacity created.

176

INFRASTRUCTURE FACILITIES

One of the factors why the capacity utilization is low in upcoming/new institutions/colleges
(both in private and public sectors) is their inability to provide necessary physical
infrastructure to run the institutions. The infrastructure facilities desirable to rank the
institutions of better quality include real estate, state of the art class rooms, library, hostels,
furniture, sports facilities, transport, commercial buildings, etc. We need to ensure apolitical
private sector participation in the establishment of colleges for providing quality physical
infrastructure.

STUDENT-TEACHER RATIO

Another challenge for improving the Indian education system is to improve the studentteacher ratio. In India, this ratio is very high as compared to certain comparable countries in
the world. For example, while in developed countries this ratio stands at 11.4, in case of
India, it is as high as 22.0. It is even low in CIS (10.9), Western Asia (15.3), and Latin
America (16.6). This brings the necessity to recruit quality teachers and strengthen the
teachers required to handle classes. I also feel that like in developed countries where students
are given part-time teaching assignments, we can also explore such possibilities in
technical/higher education to handle lower level classes. It is also expected to help the
students in meeting their education expenses partially.

177

ACCREDITATION AND BRANDING QUALITY STANDARDS

In order to improve the skills and talent of our large populace, there is a need for raising the
quality and standards of our education system. It is well-known that many of our
professionals (engineers/doctors/management professionals) remain unemployed despite lot
of opportunities being open in the globalised world. One of the major factors is the lack of
quality education resulting in qualified but not employable category. We need to
introduce/activate the mechanism for rating and ranking universities/colleges. At present,
there is no compulsion for institutions/colleges to get accreditation in India. Government has
already mooted a proposal to introduce accreditation. We, therefore, require standard rating
agencies to give accreditation to universities/colleges/schools. In a recent ranking of Business
Schools by Financial Times at global level, in the top fifteen, only two of the Indian premier
Business Schools appeared at rank no. 11 and 13 for the year 2011. Most of the top ranking
business schools were from the U.S. In this ranking, even China was ahead of India.

In the same reporting, in respect of value for money of these two Schools, it is observed that
it is not that high when compared with some of the best U.S. Schools. However, a positive
development is that these high ranked Indian Schools possess faculties with doctoral
qualifications and of global standards who can deliver quality education to the students. In
the world ranking of universities by Quacquarelli Symonds in 2010, out of 200 world
renowned universities, only one Indian educational institution appears in the list, while 53
institutions are in the U.S. According to Webometrics ranking for 2011, while no Indian
university appears in the list, there are 99 U.S. universities included. This essentially shows
that we need to develop Centre for excellence of global standards. Given the increasing role
178

of private sector in the recent years in the development of higher education standards, we
need more such institutions that meet certain global rating standards to come up in those
areas where low GER prevails. I understand that the JRE School of Management has been
established in collaboration with the largest private education group in Asia-Pacific and,
hence, striving for quality education of global standards would be its principal aim.

STUDENTS STUDYING ABROAD

As mentioned in the beginning of my address, India has the largest number of higher
education institutions. Despite that, we find the number of students interested in pursuing
higher studies abroad is on the rise. In the year 2006, according to a Wikipedia report, 1.23
lakh students opted for higher education abroad, of which about 76,000 chose the U.S. as
their destination, followed by U.K., Canada and Australia. However, in 2010-11, about 1.03
lakh students got admission to study in the U.S. In regard to Australia also, the number is on
the rise. During 2004 to 2009, the number of students joining different courses rose from
30,000 to 97,000. Likewise, in the other sought after destination of U.K. for higher education,
students studying abroad doubled between 1999 and 2009. In 2009, about 19,205 students
were studying in U.K. Various factors encourage Indian students to seek admission abroad by
taking loans from financial institutions including (a) quality of education, (b) increasing
prosperity and aspirations and (c) social prestige and also exposure and experiences gained.
We have to recognize these short-comings while building our educational institutions for
reversal of trend.

179

INNOVATIONS REQUIRED

The challenge of educating millions of young people implies that we need to scale up our
educational efforts multi-fold despite having the largest number of higher education institutes
in the world. The curriculum of some of the colleges/universities is more or less obsolete and
do not equip students with the necessary skills or impart latest knowledge. If a student passes
out of a chosen course, he or she should be employable as a work force. Unfortunately, given
the phenomenal share of lack of technical knowledge in the courses of education, students are
found wanting in the desired skills and technical soundness. To address this issue, we may
think

of

strengthening

the

vocational

streams

in

schools/colleges.

The

universities/schools/colleges must be motivated to regularly revisit their curriculum by


involving experts from different fields so that the curriculum can lead to knowledge
development. Further the available infrastructure can also be used more intensely. For
example, second stream of courses, like vocational courses can be run in the evening/night so
that the available /created infrastructure is better utilized.

Teachers are the most important factors for any innovative society because teachers
knowledge and skills not only enhance quality and efficacy of education, but also improve the
potential for research and innovation. As the GER to be achieved by 2020 is high, a large
number of teachers would be required to educate the growing young population. Maybe,
students could be used as teachers, especially good students coming from lower income
groups so that they can be partly be compensated. Further, barring some leading
schools/universities/autonomous educational institutions, many of the teachers of
colleges/universities need to hone their skills/talent. There is a need to encourage teachers to
180

participate by presenting research papers in seminars/workshops/conferences and receive


periodic trainings for updation of knowledge/skills. It is equally important that a feedback
mechanism from students is introduced in universities/colleges to assess and evaluate
teachers role in the institutional developmental process.

QUALITY OF EDUCATION

Since we need to compete globally in the 21st century, our education system should adopt
certain benchmarking techniques for improving instruction models and administrative
procedures in universities/colleges to move forward. The country is showing consistency in
economic growth pattern, leading the world in terms of information and technology,
modernization various economic activities and pushing for higher share of industries and
services sectors of the economy but there is one area which needs reform is education
system. While it is true that some investments are taking place in the countrys higher
education system, we are yet to establish world class research facilities, recruiting profound
academicians in universities / colleges / research institutions, etc. to sustain and forge lead in
economic development. It is important to understand that countries like China, Singapore,
South Korea, etc. are moving fast in investing in education system. Therefore, it is imperative
that our educational institutions are equipped with the desired quality and standards which are
essentials for transforming the younger workforce into productive ones. Needless to reiterate
that in the higher education system focus on use of technology for effective learning by
students also need to be encouraged to have cutting edge over our competitors in the
globalised world.

181

Rankings and accreditation are two different forms of quality assurance or measurement.
They provide information to students, employers, policy-makers, educationalists, and
concerned individuals, as information asymmetry poses hindrance in assessing quality.
National accreditation agencies such as the NAAC and the National Board of Accreditation
(NBA) play an important role in monitoring quality in the Indian higher education sector, but
this system presently suffers from various problems. Such issues are sought to be addressed
in the pending National Accreditation Regulatory Authority for Higher Educational
Institutions Bill, 2010 (GoI 2010).

MAKING EDUCATION AFFORDABLE

In India, if education has to reach all deserving students, it should be made affordable only
after which the participation of private sector in the education system are best utilized. The
fee structure in Government owned/sponsored institutions is inexpensive in India. However,
in some private sector institutions, which have the freedom to prescribe fee structure and
despite broad guidelines from certain state governments, fees are beyond the capacity of poor
and deserving students. Ideally, the fee structure should vary for such economically weaker
students. The educators may be motivated to keep in mind that education should not become
prohibitively expensive and ensure that no deserving candidate is denied admission just for
the fact that he or she does not possess the necessary financial resources.

In the same coin, as education has to be made affordable to all deserving and poor students,
there is a strong need for educational institutions not to over-commercialize education but to
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uphold ethics in the business of education as well. It is not anyones case that the business has
to be run unprofitably but the business must be carried out with ethical values for sustenance
of educational institutions. Over exploitation should be avoided. Profit cannot be the sole
motive for undertaking this business. It must be driven by an unflinching commitment to
society which in turn will benefit the business in the long run.

EMPLOYERS EXPECTATION FROM HIGHER EDUCATION


Signaling value of Certification & Assessments
English & Digital literacy
Soft skills
Relevant functional / Industry skills
Robust and legitimate distance Education
Apprentices that give workplace composure
Geographic, Gender & Community Inclusiveness
Decentralization, Competition and innovation
Matching Institutions & Social perception of skill Vs Knowledge
Financing options.

The above criteria seems to be a big requirement of the industrial sector towards the budding
youngsters and their source, the educational institutions, who are yet expected to concentrate

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more in spite of various opportunities provided and the problems cited. As discussed earlier, a
focus needs to be driven on the quality strengthening of the higher education and the
management education in order to fix the above expectation of the employers.

MANAGEMENT EDUCATION

Due to the efforts and initiatives taken during the successive Five Year Plans and particularly
due to policy changes in the eighties to allow participation of private and voluntary
organizations in the setting up of management institutions on self-financing basis, the growth
of management education has been phenomenal. Presently, there are several management
education institutions playing crucial role in converting the human resources into human
capital 'by creating skilled manpower, enhancing industrial productivity and improving the
quality of life'.

There are 13 IIMs in India at present and almost all the universities have Dept. of
management. A significant growth has taken place in various programs of management
education over the period of time. The total number of management institutions has grown at
the considerable compound growth rate. We have noted that there is a considerable increase
in total number of seats in different programs in management education throughout the
country. Quality of higher education including management education can be best judged by
one of the important indicator viz. magnitude of public expenditure. Expenditure on
education is critically important to improve the educational levels of population. Strong and
Vibrant education systems with national values cannot be built by a heavy reliance on private
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finances. The CAGR of budgeted expenditure on higher education is 11.8 per cent which
justifies the Government' effort to enhance and bring efficiency, sufficiency and equity in
management education in India

ISSUES IN INDIAN MANAGEMENT EDUCATION

Although higher education including management education has expanded over the period of
time, yet we have to address the issues of quality, equity, commercialization above all
spiritual bankruptcy to be the areas of concern.

QUALITY

Despite the best efforts, government bodies like Directorate of Management Education of
various states, AICTE and universities have not been able to achieve much in maintaining
desired quality standards of the management institutions. The quality of education and
training being imparted in the management education institutions varies from excellent to
poor, with some institutions comparing favourably with the best in the world and others
suffering from different degrees of faculty shortages; infrastructure deficiencies; curricula
obsolescence; lack of autonomy in academic, financial, administrative, and managerial
matters; poor involvement in knowledge creation and dissemination, and poor interaction
with community and economy.

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COMMERCIALIZATION

As world economy has faltered, colleges and universities have been forced to adopt strategies
for increasing revenues and decreasing cost. The strong growth of private and for profit
institutions around the world has attracted a great deal of attention. Governments have
admitted that they cannot provide places for all the qualified in their countries and this
created legislation and policies which encourage private money flow into their countries for
building new universities. Education itself has become an industry for international business.

EQUITY

On one hand gross enrolment ratio (GER) stands low for the overall population, while on the
other hand there exist large variations among the various categories of population based on
gender, urban or rural habitation and rich and poor. Due to regional disparities in economic
development and uneven distribution of institutions of management education, the
management education is not equally available to the different sections of the society.

EVALUATION PROCESS

In management education special emphasis is given to continuous evaluation of students'


performance during a term or academic session. Examination process has suffered great set
back in achieving its objectives on account of various reasons resulting in a assessment that
in many cases does not reflect the true level of knowledge acquired by the students. It has
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been observed that students may pass examinations securing good marks with scanty
preparation, mostly done just before the examination. This illustrates the quality problem in
the present examination system.

QUALITY OF TEACHERS

Due to proliferation of management institutions in the country, demand for teachers has gone
up excessively. Acute shortage of well qualified teachers forces the management to appoint
even fresh engineering graduates as faculty who are required to engage classes immediately
after joining the institution without being given any training and preparation time. Similarly,
institutes are engaged in appointing new faculty member on low salaries and heavy teaching
time load which further deteriorate their quality and they are left with no time for further
development, and involving part time faculty which had little or no involvement with the
institutes. This causes the decline in quality of teaching in these management institutions.
Poor quality teachers and poor quality students form very good team and jointly encourage
indiscipline and bad work culture in the institution.

COST OF EDUCATION

Government funding on higher including management education has been diminishing


continuously for more than one decade. In the view of withdrawal of government support to
finance higher education private institutions has been allowed to take over the responsibility
of imparting education to all. Further, in government aided institutions the model of self187

financing and self-sustaining institutions has been introduced. All these developments have
added to the cost of education in a considerable manner. Though, the education loan has been
made easy to facilitate higher and management education still the terms and conditions
imposed by banks in terms of guarantee and criteria of minimum income of family restricts
the talent coming from the poor families to go for higher education as well as management
education.

GLOBAL COMPETITION

Management Education system is dynamic in nature. It faces many challenges in responding


to societal, technological and economic changes in the local and global environment. The
issue today is not so much about the value and role of management education in the social
and economic development of a nation. Management education is widely recognized as an
important part of the total education and training system. India being a signatory of WTO is
bound to open up its market for trade in services including education but it does not have a
clear policy for strengthening its education sector to compete with the giants in the world.
Thus, it is the need of the hour to free the higher management education system from
unnecessary constraints and provide academic and administrative system which is
accountable, transparent and equitable.

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INDUSTRY

PARTICIPATION

IN

HIGHER

EDUCATIONAL

INSTITUTION

DEVELOPS EMPLOYABILITY SKILL AMONG MANAGEMENT STUDENTS

Curriculum Designing
Case Designing and Development
Mini Projects and Assignments
On the Job and Internship Training
Performance testing and evaluation
Reciprocal Sharing Arrangements
Setting up a business development cell on partnership
Faculty exchange and participation in industry and vice- versa in university and specialized
institutions and
Promoting entrepreneurship in education system

INTEGRATE INDUSTRY IN SKILL DEVELOPMENT OF MANAGEMENT


STUDENTS IN HIGHER EDUCATIONAL INSTITUTION

Employment opportunities are growing in the private sector and this sector employs those
who possess knowledge and skills required by it. This requirement is continually changing
because most sectors are connected to the global value chains and hence the skills required

189

are often decided by the global markets. It appears at a glance that education has to be tailor
made-to meet the requirements of the private industrial sector but there is a huge gap between
what is taught and what is expected by the industry has continued since the introduction of
the organized system of management education.

In order to reduce this gap, fruitful

discussions and interactions between academicians and executives of industry will lead
towards sincere exchange of conceptual and practical skills. The managers from private
sector enterprises will be good in handling and solving practical problems, getting the work
done from the workers, efficient in tally accounting packages, finalization of financial
statements, motivating the workers etc., similarly , the academicians will be good in theories
of motivation, conceptual knowledge of marketing and other functional areas etc., in this
regard, there is a genuine need to bring the managers/executives from industry and the
academicians from the academic institutions to a common platform to mutually share
theoretical knowledge with the managers and the practical knowledge with the academicians.
This reciprocating arrangement will mutually benefit both academia and industry.

EMPLOYABILITY SKILL MISMATCH AMONG MANAGEMENT GRADUATES IN


INDIA INDUSTRY EXPECTATION, ISSUES AND CONCERNS

In the era of globalization and competition, optimum allocation of scarce resources is vital.
Managers play a pivotal role in deciding the future effort of any organization through
commitment of limited resources. Management as a discipline of education draws upon a
large number of other social sciences such as economics, psychology and sociology. It also
draws heavily from mathematics, engineering and other sciences. Multidisciplinary nature
makes management education a unique proposition in higher education.
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Management education is one of the most crucial components of human resource


development with great potential for adding value to products and services, thus contributing
to the national economy. The management education is a formal process that helps an
individual identify his own unique self, gain a conceptual understanding to match the
emerging perspective of the global economy and businesses with the urgent management
agenda of the local community and create his own path in the arena of life and work. The
management education programmes in India have established a position for themselves in the
market places. They are the most prized professional degrees.

However, in spite of the development and accomplishments, management education in India


has invariably failed to keep its promises to the society. Despite the global standing of several
institutions of higher learning, the management education systems output is uneven.
Excellent institutions, however, are few compared to the multitude of institutions that make
Indias large education system and quality training continues to concentrate in islands of
excellence. There are concerns, however, about the extent to which management education
is able to adequately prepare graduates for employment.

The university system of management education did meet the growing demand of managerial
manpower but could not match up with the IIMs in terms of creation of knowledge and
providing consulting services to the corporate world. The American content, form and style
of management education based on the market driven capitalist economy came in conflict
with the political ethos and socialistic pattern of Indian society in the seventies and eighties.

191

There is also a sever faculty constraints in these academic institutions. In an education system
of such uneven quality, competitive entrance examinations have thus replaced university
performance as signals of candidate suitability for higher education and jobs (Kapur and
Mehta, 2004). The IIMs and the university system proved woefully inadequate to meet the
growing demand of industry and other sectors of economy for trained managerial manpower.
Nevertheless, innovation is fuelled by education and proliferation of knowledge.

The

liberalization and globalization has brought a complex, competitive and challenging


environment in Indian business. The growing industrialization, increasing size of firms
operating in a wide variety of markets and intensified competition at home and abroad, the
need for competent and professionally trained managers is fast increasing.

In today's fast-paced development and dynamic investment climate the demand for workforce
with high levels of managerial, technical and soft skills will, no doubt, magnificently
increase. But this promise does not come with a guarantee. Today, a university degree is not
enough to make one employable as credentials do no more than permit entry into the
competition for tough-entry jobs rather than entry into the winners enclosure. Therefore, the
challenge confronting every government, business schools and the business graduates around
the world is on enhancing the employability of the workforce. The discourse of employability
connects these two rationales in a simplistic manner. Individual employability is described as
both the means by which to obtain and maintain high-quality employment and to eradicate
the social reproduction of inequality.

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Some of the basic criticism of management education in India includes;


Management cannot be taught; one is either born with it or must acquires it over years or
practical experience.
Business schools are excessively academic and theoretical. They teach quantitative models
that have little relevance to deal with actual problems of business.
Business schools give inadequate attention to shop floor issues, production processes and
management of human resources. Ignoring these resources tantamount to losing opportunities
to improve production and efficiency.
Management education fosters undesirable attitudes amongst the students. Companies
complain that MBAs are self-seeking smart boys who lack team spirit and have excessive
regard of their own abilities. They appear to have short-term orientation and lack of
organizations loyalty.
Management students are lacking in inter-personal competencies and thus organizations find
it difficult to absorb them. Some companies complain that MBAs are not able to make daytoo-day operational decisions, communicate effectively and motivate people to optimize
them.

In the last ten years, there has been a phenomenal growth of management education both in
terms of number of institutions (estimated to be around 700) and sets available (estimated to
around 60,00) in the AICTE approved diploma (PGDBM) and degree (MBA) programmes.
The PGDBM is equivalent to MBA for employment in the industry but is currently not
eligible for employment as a teacher in management or for higher degree leading to Ph.D.
The total number of management institutions has grown at the considerable compound
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growth rate and are playing a crucial role in converting the human resources into human
capital 'by creating skilled manpower, enhancing industrial productivity and improving the
quality of life'. Among young Indians, MBA is now seen as an important means to actualize a
corporate career of high growth and prosperity.

Table 5.2
GROWTH OF BUSINESS SCHOOLS IN INDIA (1950-2010)

Period

No. of B-Schools added

Average annual addition

1950-1980 (30

118

1980-1995 (15

304

20

1995-2000 (5 years)

322

64

2000-2006 (6 years)

1017

169

2006-2010

1800

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Source: UGC

EMPLOYABILITY OF MANAGEMENT GRADUATES IN INDIA

Much of the attention in the quality and the development of higher education developments in
recent years strongly relates to the issue of graduates employability. The emerging position
of this concept is widespread in national and international science, media and political arenas,
particularly in organizations such as the International Labour Organisation, the European
Commission, or the Organization for Economic Cooperation and Development. As indicated,
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the concept of employability is not new. The concept of employability is a multidimensional


concept explained on the individual level as ones capabilities of retaining a self-rewarding
job (Allen & Van der Velden, 2005), in employers organizations as human resource
requirements for fulfilling operational tasks (McQuaid & Lindsay, 2005) and on the societal
level as a system facilitator between (higher) education, the labour market and civil lives
(Teichler, 2008). Employability, in simple words, refers to the knowledge and technical skills
required to do a particular job. Employability is an individuals capability and confidence to
enter and manage a career path which fulfils both their potential and their aspirations, while
enabling them to contribute fully and effectively to the economy and society.

An employable person is able to gain initial employment, maintain that employment and
improve prospects by rising in the organization or getting new job.

All this requires

functional literacy, technical and vocational skills and soft skills such as communication.
Even though in this context the concept of employability might be observed as too narrow
and limited to graduates success, which could limit the function of higher education as a
direct facilitator of labor market needs, it can hardly be avoided in discussions of competence
development. As a concept, it explains the integration of different issues in an indicated
context related to typologies of competencies, job requirements, labour market segmentation,
or determinants of graduates' careers generally and the function of education systems
providing skills for the labor market.

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CHAPTER 3.6

EMPLOYER EXPECTATIONS

Concerns over the effects of credential inflation have spawned a number of debates around
concepts of employability and postgraduate learning. In the contemporary knowledge-based
economy, it is argued, the employability of young graduates is increasingly dependent upon
their ability to maintain positional advantage in a labour market characterised by boundary
less careers. Therefore, enhancing the short and long-term employability potential of young
people has become a central developmental priority and this is especially true for
management graduates. Business and industry representatives express considerable
dissatisfaction with the general level of preparedness of prospective entry-level employees.

A review of the literature indicates that employers have no quarrel with the skills
performance of today's graduates, but they do have serious reservations when it comes to
their nontechnical abilities or employability skills. Employability skills are the attributes of
employees, other than technical competence, that make them an asset to the employer. Some
of the other key findings from the literature are;
Employers want entry-level employees to possess an array of basic, higher-order, and
affective employability skills (Stasz, 1993).
Employers value these generic employability skills above specific occupational skills (Busse,
1992).

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Employers find far too many entry-level job applicants deficient in employability skills, and
want the public schools to place more emphasis on developing these skills (Packer, 1992).
Valuing employability skills-to the point of assigning them an even higher priority than jobspecific technical skills-employers are understandably distressed to find so many entry-level
job applicants lacking these skills (Charner, 1988).
Failure to equip young people with employability skills has far-reaching consequences
(Byrne, Constant, and Moore, 1992; Kazix and Barton, 1993).

EMPLOYABILITY OF MANAGEMENT GRADUATES IN INDIA

Formal training of workforce in basic business frameworks and concepts is a key success
ingredient in the not-so-mature Indian industry. The prevailing motive for these attempts is
based on the assumption that acquiring a high level of employability-related competencies is
the most desirable result of the business school system. The industry today looks for trained
manpower in sales, marketing, HR and finance roles in large numbers. It is thus important to
find out whether the quality of education has kept pace with the phenomenal jump in
quantity, in particular, do our management graduates have the skills which are required to be
employable in the industry from the perspective of language competency, cognitive skills,
and functional and people skills?

In this way, the empirical findings from management graduate surveys related to career
success and the evaluation of MBA programmes are expected to hold strong potential for

197

demystifying the real contribution of business schools make to graduates professional work
either by way of generating new knowledge (i.e. the push principle) or providing skills (i.e.
the pull principle adjusting graduates to suit employers needs).

A recent study

by ASSOCHAM found out that a meagre 10% of the B-school graduates are actually
employable despite the demand. The growing demand for MBA graduates has led to a rapid
growth of B-schools, in every nook and corner of the country. Although this mushrooming
has taken care of the quantity issue, the quality of this talent is questionable, according to
industry sources.

However, demand has failed to keep up with this spurt in supply due to the quality of
candidates produced by these B-schools. In a recent paper, B-schools and Engineering
colleges shut down Big Business Struggles, ASSOCHAM found out that most of the Bschools in the country fail to produce management graduates that match Indian industrys
expectations. Only a meagre 10% of the graduates are actually employable despite the
demand. Hence, over the last decade those concerned with education and employment have
been increasingly seeking evidence of how levels of educational attainment.

QUALITIES LOOKED FOR IN NEW MANAGERS

The new manager must possess at least four qualities to accomplish success in todays fast
changing and turbulent environment: customer orientation, adaptability, innovativeness and
fast responsiveness. These performance imperatives in the new managers role and briefly
outlined:
198

CUSTOMER ORIENTATION

In recent times the concept of market and customers as economic transactions has given way
to customer-oriented themes. The value of products and services stems from intangibles
embracing relationship between the producers and the customers. This has caused a shift of
organizational purpose from building products and services to building rapport with the
customers. The new manager has to directly involve the customers in the design of the
products and services.

ADAPTABILITY

The success of a new manager depends on his ability to master the art of continuous
regeneration. It involves the ability to still perform useful tasks despite changed situations.
This is termed as adaptability to change. It can be conceptualized as ability to take in new
information, accomplish new skills, swiftly incorporate new India, introduce new technology
successfully and allied activities as per situational requirements. Adaptability also involves
anticipation of change. Thus, the new manager attempts to absorb the unexpected business
events, fluctuating demands emerging competitive practices shifting customer tastes, and
changes in raw material cost, etc. for interpreting the future. The new manager must be
farsighted, open, flexible and capable of redefining the business game. Thus adaptability is an
essential characteristic of the new manager.

199

INNOVATIVENESS

Today, experiencing the unexpected has become the watch-word. Accordingly, it has become
imperative for the new manager to remain constantly prepared for handling the unexpected
business events. These events may include technological breakthroughs, emergence of new
competitors with exciting products, process innovations, etc. thus, thriving on quantum
change has become a prerequisite to the survival of the company. This necessitates
innovativeness on the part of the new manager. The new manager can provide innovativeness
by re-conceptualizing existing methods, tool and processes.

FAST RESPONSIVENESS

Fast responsiveness means commitment to move from identifying customer needs to


satisfying them faster than the best in the industry. Of late, the customers are becoming time
sensitive and hence there is urgency in the business to minimize time consumption. The fast
responsiveness on the part of a new manager requires a radical rethinking of the business
process. It turns the concept of product development, production, distribution and delivery
processes upside down. The new manager must provide a radical definition of desired
product and process cycle time. In short, he must understand the relevance of business
process where the past and waves of future collide.

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REDESIGNING MANAGEMENT EDUCATION IN INDIA

The onset of liberalization, globalization and fast progress in information technology, have
resulted in the management schools facing the challenge of providing new age manager. With
the change in environment the management education in India needs a face lift for providing
competent executives to the business and their survival in the long-run. In an increasingly
competitive and global market place, with complexities in technology, financing and desire
for more fulfilling work, the business schools must ensure that students gets appropriate
management education which suitably prepares them for diverse future roles. In recent days
several innovative trends are visible at the horizons of Indian business schools. These trends
will enable them to turn themselves inside out for meeting the challenges posed by
globalization and technological changes.

Some of these innovative trends include the following:


PUTTING UP INTRANETS AND BEATING UP INFORMATION TECHNOLOGY

Information technology has dramatically changed the functioning of the business.


Responding to the situation the top management institutes like IIMs, FMS, MDI, Bajaj, etc.,
have introduced information technology in their curriculum. Most of the premier institutes
have set-up the facility of internets and intranets by which students can easily access
information, therefore better quality of research has become possible. Premier institutes are
running programmes like ERP, Software Accounting Package (SAP), Global Corporate
Disclosure Practices, Oracle, and Strategic management of Information Technology, etc. to
adapt their students to the new technology. At IIM-Lucknow, each hostel dormitory now has
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access to central computer which is connected to the library. All the students of SP Jain
Institute of Management work on laptops since last year. At IIM-Ahmedabad, most student
projects are sent on internet. Though premier management institutes have adopted new
technology, however, majority of management institutes under the University set-up and
private schools have still not adopted the new information technology leading to sub-standard
products being churned out of these institutes

INVITING FACULTY FROM OVERSEAS

Another innovative trend in business schools is to invite foreign professors to teach at the
campuses. Though it is a costly affair but the benefits are immense. The students are exposed
to the global business practices, new business strategies and outside environment. S.P. Jain
Institute spent Rs. 8 lakhs to bring Dana Clyman from the Darden Business School to conduct
a course on decision analysis. Likewise, other business schools are inviting international
professors and MNCs as visiting faculties.

CASE STUDY METHOD CHANGED

The premier business institutes are taking up case studies that analyse actual early strategic
initiatives of Indian companies instead of studying events after they occur. By analysing
actual early strategic initiatives of Indian companies, students learn how to predict outcome
of strategy. IIM-Ahmadabad, in 1998, decided to look at company in its earlier stages of
implementing a strategy and then try to predict the outcome of strategy. IIM-Ahmedabad
students have to try to forecast the impact of launch of India car on Telco. This method
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encourages out of the box thinking and students can go lateral in trying to building scenarios
on the basis of trends and start applying their own judgments.

OVERSEAS EXPOSURE

The other innovative trend which is in limelight during these days at all the top business
schools is sending faculty and students abroad. Indian business schools are running exchange
programmes with overseas business schools. In 1998, seven students from IIMs went on
exchange programme to Paris for four months where they helped Coca-Cola to buy out a
mineral water company. Indian business schools are also sending their faculties abroad. This
is very important for their development, as unless faculties themselves have an idea of how
business is done, globally they will not be able to teach their students all about globalization.
Recently, MDI sent 14 of its faculty members to Kellogg School of Business to see how an
A-class business school in the US did its business. XLRI is trying to collaborate with
Universities at George Town and California for sending its Professors there on regular basis.

IMPROVEMENT IN RESEARCH FACILITIES

Till now, Indian business schools were lacking in the opportunities to do research on the best
management practices and emerging management issues world-wide. But now, realizing the
importance of research, Indian business schools are getting around to interact with industries
in different ways. Even the business houses are willing to cooperate with business schools
realizing their importance for the attainment of corporate goals. IIM Lucknow is proposing a
HRD laboratory at an investment of 20 lacs. The companies can use its HR facilities for a
203

whole gamut of issues like selection of employees, analysing employees potential,


developing compensation packages, etc. thus, business schools and business houses have
come together to promote research on topics like ERP, Marketing and HR for their mutual
benefits.

IMPROVING MULTI-SKILL COMPETENCE OF THE FACULTY AND


RATIONALIZATION OF CURRICULUM

Management is an inter-related subject and requires inputs from every field for its proper
integration. Realizing this aspect the business schools are paying a lot of attention towards
multi-skilling of professors so that they can teach holistically to the students. Measures are
also being adopted to make their curriculum well integrated to ensure all-round development
of their students with a possible level of specialization in each field of management. This
prepares the students to manage across the functions in an organization.

INTRODUCING COURSES FOR INTERNATIONAL/GLOBAL ECONOMY

Responding to the changed situation of no barriers and accepting the world at large as a
global community, the top Indian business schools are coming forward to evolve courses for
global economy. FMS Delhi has introduced several courses which are globally relevant.
Likewise, IIM- Lucknow is proposing a truly global curriculu7m and meshing information
technology in all courses. It has been observed that 40% to 60% of the curricula in Indian
business schools have changed during mid-1997 to mid-1999.

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PREFERENCE TO CANDIDATES WITH WORK EXPERIENCE

Overseas business schools do not admit students unless they have worked for a mandatory ten
years. The logic behind this rule is that exposure to real world of business is necessary to
fully understand what is taught within a class-room. Though the work experience condition is
not mandatory in India however fortunately trend is automatically changing with more and
more candidates with work experience being selected in business schools especially at the
IIMs.

TRADE-OFF BETWEEN BUSINESS SCHOOLS AND INDUSTRY

The entry of large number of pure academics from basic disciplines such as economics,
Quantitative Techniques (QT), and sociology into the management schools seems to have
built, over a period of time, a bias against practicing managers entering the system of
teaching. In a good business school, nearly 25% of the faculty must come from industry. This
will help the business schools to understand the view point of the industry and vice versa.
The students will be benefited substantially by this as they will get an insight into the
practical requirements of the industry and can therefore prepare themselves better for their
future roles.

205

WHAT NEEDS TO BE DONE A QUESTION OF SURVIVAL

Business schools as well as industry cannot work in isolation. Both have to work as partners
in progress as they are mutually dependent on each other for their survival. In view of
dynamic changes taking place worldwide, both management institutes as well as industry
have taken various steps to adapt themselves to the new environment. To meet the challenges
stemming from the import of various environment factors management education needs to be
geared towards specified directions. Various experts have laid down certain guidelines for
management education to follow in the 21st century for their survival.

Philip in his work titled Management education in India: Past, Present and Future
suggested the following guidelines in this context:

PLANNING MANAGEMENT EDUCATION AS A DISTINCT DISCIPLINE

Management education has been categorized under technical education along with
engineering, technology, pharmacy, etc. This does not appear to be a logical grouping, and
may have been appropriate in 1950s when there were only four or five management schools.
But in the current scenario management education deserves to be seen, organized and
directed as a separate system. This will foster the growth of the management discipline.

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PROGRAMMES OF VARYING DURATION

The question that is now vigorously debated at a number of management institutions is: do
we really need two years for effective MBA program. There is a growing feeling among a
number of academics and practitioners that almost 55 percent of the course in the second year
of MBA is repetition. In Europe a large number of well-known business schools offer MBA
programmes of one year duration. Even MDI is offering management programme for fifteen
months duration, they are taking students with certain relevant experience. In view of the
above, there is a need to seriously look at changing the duration of MBA course and to
emphasize on practical experience rather than simple theoretical knowledge.

INTERNATIONALIZING MANAGEMENT EDUCATION

As business industry manufacturing, technology and money movement are getting more and
more internationalized, it has become imperative for the management to follow suit. In this
context Philip suggests as under:
Admit international students in at least some of well known schools.
Induct a few international faculty in order to create an opportunity to hear and learn about
other cultures and business systems.
At least 15% of the curriculum must deal with subjects concerning international dimensions
of economics, finance, marketing, technology transfer and human resources management.
With the strong winds of change blowing, faculty at business schools have to become more
international in their outlook, orientation, education, contacts and teaching.

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EMPHASIZING TECHNOLOGY MANAGEMENT

Since the technology is witnessing a revolution in every field particularly electronics,


communication, etc., it is imperative that the new managers should be comfortable with the
process of buying, borrowing or adapting to these newer technologies and managing them.
Therefore, in all the management schools subjects such as technology selection, technology
management and innovation must be among the key elements in the curriculum.

ENCOURAGING ENTREPRENEURSHIP DEVELOPMENT

Management education should not only develop a person to step into the role of an executive
but should also inculcate him with the entrepreneurship spirit. A new breed of
entrepreneurship is coming up who wish to make significant contribution to the industrial
growth, employment and expert performance of our country. Therefore, the natural growth of
entrepreneurship must be encouraged and nurtured. This calls for suitable changes in the
curriculum to encourage, facilitate and support the development of owner-manager in the
near future.

It is widely held that knowledge, skills, attitude and resourcefulness of people are highly
significant elements to sustain in a knowledge society of today. In todays fast paced
development and dynamic investment climate in India, the demand for workforce with high
levels of managerial, technical and soft skills will, no doubt, magnificently increase. It is time
to examine and restructure the India education system and joint initiatives by the industry,
academia and government to wash out the talent gap. Literature posits that the majority of
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business graduates in India are labelled either not employable or, severely under employed
due to lack of required skills and attitudes for performing jobs successfully. As indicators of
graduates transition and early career success have been attracting ever more attention on the
policy agenda, it becomes even more important for higher educational institutions and policy
makers to revive the situation at hand.

Further, employers also have surprisingly little knowledge of what to expect from
management graduates, and business schools have a similar low level of knowledge of what
employers need. Both aspects are directly linked to strategic issues of enhancing graduates
employability as they improve the quality, governance and societal relevance of management
education, and seeking to improve skill and education matches. These challenges open up
several general questions regarding the future development of management education: how to
balance general and professionally specific subjects and their complementarities, what should
be the practical scope of teaching and learning modes or how should management schools
collaborate with employers and get involved with internships or project trainings, and how
should they validate non-formal learning experiences.

Need of the hour therefore, is to build employable and quality manpower through industryacademia interface. It is neither the responsibility of only the B-Schools nor only the
industry. Instead, it is the responsibility of both. One of the major causes for industryacademia gap is the perceptual differences between industry and academia regarding their
roles performed. Also defining employability in these roles, which require people interaction
and people management, is not straightforward. As opposed to engineering roles, where
cognitive and functional skills are enough to succeed in a role, a complex mix of personality
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trait and spoken and written language skills (apart from cognitive and functional skills)
become important in quantifying employability in the management space.

With regard to

studies in this area, whilst there is a plethora of studies that consider different aspects of
employability, such as employability representing the capabilities of being employed for a
job, and a growing recognition of the difference between 'old' and 'new' employability skills
sets required to compete with an increasingly flexible labour market, there is however,
limited studies that have examined the key aspects of the emerging employability skills in the
emerging knowledge economy. Studies on this objectives are central to enhance our
understanding on the current employability skills required so as to help us develop measures
in imparting quality management and higher education and capitalize on the human resources
advantage India possess at this juncture.

INTERNATIONALIZATION OF EDUCATION

There has been a very aggressive approach by USA, UK and Australia in few
decades on spreading their education outside the country and these countries have taken
some of the issues in their parliamentary bills to expand and develop the vocational
and higher education outside the country. In Asia, Singapore, Malaysia, Dubai are such
places, which have made few locations of Education offering with quality while providing
minimum infrastructure. As commented by Dean, London Business School that India
lacks in offering basic infrastructure and location to offer quality education from the
reputed universities of the world. There is a need of very clear view on Education
Policy on the internationalization of the higher and other level of education in either
form by inviting the foreign players in the Indian education and by providing the Indian
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education players through and official channels to the countries, which have opportunities
for Indian educational institutions.

Pg 85 No heading for Table 2.2


Pg 116 No source for Chart 2.5
Pg 121 Inference is at last page for Table 3.2. Try to incorporate. I tried but the next table
gives me trouble.
Pg 142 No heading for Chart 3.1
Pg 151 Table is not clear

The variance explained by the initial solution, extracted components and rotated components
is displayed. The first section of the table shows the initial Eigen value. The total column
gives the Eigen value or the amount of variance in the original variables accounted for, by
each of the component.
The variances extracted by the factors are called the Eigen values. Squared factor loadings
are the correlation between the variables and the factors. The squared factor loadings indicate
the percentage of variance of the original variable which is explained by the factor.

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