Role of Management Education in Global Business

Abstract

The post liberalization period has brought a drastic change in the Indian Economy. Before liberalization, for the first 44 years since independence, Government was playing a vital role in the development of Indian Economy and most of the industries were in the hands of either Central Government or State Government. Barring a few public sector undertakings, most of the public sector undertakings were operating at loss. Only a few sectors were there in the hands of private sector. These private sector units were operating in the profit in the monopolistic condition despite having low quality and poor customer service.

The post liberalization period has changed all this. The economy was opened for multinational companies. These multinational companies due to their large scale operations, full utilization of their capacity, huge advertisement and good sales promotional efforts, quality product and good customer relationship are earning huge profit. The entry of multinational companies has increased the cut throat competition in the economy. This has compelled the Indian companies to give more stress on quality product, to reduce the cost of production, to provide good after sale service, to adopt modern technology, to engage efficient human resources and to provide a fair rate of return to the investors.

The post liberalization period has also observed the mushroom growth of B-schools so as to cater the managerial needs of the private organizations. However these B-schools are having shortcomings like inadequate infrastructure, shortage of good faculties, outdated syllabi, lack of skill based knowledge, absence of practical approach in teaching pedagogy and so on. The ultimate result was the students having MBA degree were lacking the employability and thus could not get a good placement or even if they were getting a good placement, they could not sustain in the organization. All this has affected the demand of MBA Education. In Maharashtra this year about 15000 plus seats remained vacant.

In this background the role of management education viz a viz management institutes has increased. There are challenges and threats before the management institutes.The present paper discusses the role of management education in the global business.