EXCELLENCE OF MBA PROGRAMME IN VARIOUS HIGHER …adalyajournal.com/gallery/10-nov-2197.pdf ·...

EXCELLENCE OF MBA PROGRAMME IN VARIOUS HIGHER

EDUCATIONAL INSTITUTIONS WITH SPECIAL REFERENCE

TO SALEM AND NAMAKKAL DISTRICTS.

M.Mai Gnanam

Part time Research Scholar in Management, Department of management

studies, Periyar University, Salem-11.

Dr.T.Sarathy

Associate Professor of Management, Department of management studies,

Periyar University, Salem-11.

Abstract

In the current scenario, the role of Business Related higher studies becomes

influential in the overall socio-economic development of our nation. Educational

institutions should take efforts to provide the services effectively and efficiently which

would result in satisfaction of MBA students In this context, an attempt was made to

study the students’ satisfaction, attitude, and behavioural outcome towards higher

educational institutions offering MBA programme. the business education market in

India was about Rs.35 billion, which was not enough to meet the growing demand of

management education in India. The phenomenal growth of business management

education had been largely triggered by the growth of corporate sector and

industrialization in India. Management education had emerged as the most preferred

subject in the higher education which develops the skills in the students to contribute

for self sustenance. Several business schools have been set up in the last few years but

very few can mould the students to meet the expectations of the industry. There is a vast

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ADALYA JOURNAL

Volume 8, Issue 11, November 2019

gap existing between the quality of service offered by various categories of educational

institutions offering management programme. In this research we find that the

satisfaction, attitude and behavioural outcome of MBA students especially in Salem and

Namakkal districts.

INTRODUCTION

India's education system is that the third largest within the world, after China and the United

States. Higher education includes colleges and University teaching - leaning towards

students‟ progress to attain higher education qualification. Higher education imparts in-depth

information and understanding thus on advance the scholars to new frontiers of information

in numerous walks of life (subject domains). Higher education in India provides unique

opportunities to convert the demographic surplus into its economic strength by providing its

young people the right kind of skills.

According to the Ministry of Human Resource Development (MHRD) Annual Report 2010-

11, India has 544 university level institutions, which includes 261 state Universities, 73 state

private Universities, 42 central Universities, 130 deemed Universities, thirty three

establishments of national importance and 5 establishments established beneath numerous

state legislations. Other institutions includes 16000 colleges as government degree colleges

and private degree colleges, including 1800 exclusive women's colleges, functioning under

these Universities and institutions. The country has 79 centrally funded institutions, which

includes 15 Indian Institutes of Technology (IITs), 11 Indian Institutes of Management

(IIMs) and 30 National Institutes of Technology (NITs).

The report „40 million by 2020: making ready for a brand new paradigm in Indian Higher

Education' free by Max Ernst and Young, the upper education sector in India is predicted to

witness a growth of 18 per cent Compound Annual Growth Rate (CAGR) till 2020. At

present, the sector spends more than INR 46,200 crores (US$ 10.4 billion), which is

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estimated to grow to INR 232,500 crores (US$ 52.5 billion) in 10 years. There has been a 70

fold increase in enrolment of students in higher education. In 1951, there were only 1.7 lakh

students pursuing education beyond class 12 which was increased to 1.2 crore in the year

2008. Institutions of higher education find it difficult to meet the challenges of globalization

of higher education. Emphasis on quality parameters becomes necessary for private

institutions with the opening up of the Indian economy.

The Indian education sector entails three goals: access and expansion, equity and inclusion,

and quality and excellence. Unless the quality of our higher educational institutions is

enhanced and sustained at a high level through innovation, creativity and regular monitoring,

it would be difficult for the Indian graduates to compete globally.

MBA (MANAGEMENT PROGRAMME) IN INDIA

The phenomenal growth of management education had been largely triggered by the growth

of corporate sector and industrialization in India. Management education had emerged as the

most preferred subject in the higher education which develops the skills in the students to

contribute for self sustenance. Several business schools have been set up in the last few years

but very few can mould the students to meet the expectations of the industry. There is a vast

gap existing between then quality of service offered by various categories of educational

institutions offering Management programme. According to the World Economic Forum,

Global Competitiveness Report 2008 on “performance on higher education and training”

quality of management schools in India ranked 115th position. So, to make management

education useful for the industry, certain key areas need to be identified, such as

benchmarking quality in educational institutions; creating quality managers and

entrepreneurs; bringing in professionalism in management education, qualified and

competent faculty members, academic reputation, infrastructure, support facilities, and

regular updating of curriculum.

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During 1990-98, over 600 programmes had been added and in the year 2008 it increased to

2500 programmes. In 2010, the growth of management education programmes was

tremendous and reached up to the level of more than 4,800 business schools producing over

140,000 management graduates every year.

QUALITY OF MBA EDUCATIONAL INSTITUTIONS AND THEIR IMPORTANT

The era of economic liberalization had ushered a rapid change in the service industry. At

present, India is witnessing a transition from agriculture-based economy to a knowledge-

based economy. The data economy creates, disseminates, and uses knowledge to enhance its

growth and development. Economic growth can cause a surge in demand for a lot of

engineers and management graduates. In order to maintain the economic growth in the global

marketplace fuelled by the knowledge economy, India needs to increase student enrolments

in higher education specifically in management and technical education.

Intensive competition in the higher education sector (Ford et al 1999), internationalization of

higher education and higher expectation towards higher education institutions (Marzo-

Navarro et al 2005), increase of full fee payment students (Oldfield and Baron, 2000), and

therefore the classification of education as a marketable service (Cuthbert 1996; Mazarrol

1998) prompted the management of the varied teaching establishments to pay more attention

in assessing the general students‟ perceived service quality. The ability to fulfill customer-

perceived service quality can have an effect on the property of a company (Canic and

McCarthy 2000). As per CLSA, the size of Indian Private MBA market is worth US$ 731

million and is expected to reach US$ 1463 million by 2012. According to Cygnus estimates,

the cumulative demand for MBAs during the period 2008-12, is expected to be about

1,340,000, but the potential number of MBA pass outs during this period is expected to be

about 740,000 resulting in a gap of 600,000 MBAs in 4 years time. To tide over this short

supply, there is an immediate need for more than 1,500 new business schools in the country.

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The National Assessment and Accreditation Council (NAAC), an autonomous institution of

the University Grants Commission (UGC) has identified seven criteria to serve as the basis

for its assessment of higher educational institutional quality: information aspects, teaching-

learning and analysis, research, practice and extension, infrastructure and learning resources,

student support and progression, organisation and management, and practices.

The higher education system operates in a market-oriented environment, with internal and

external customers; wherein, “delighting the customer”, is the rule for survival in the long

run. It is imperative for educational institutions to deliver and monitor quality services to

achieve students‟ satisfaction (Shank et. al. 1995; Joseph et. al. 2005; Russell 2005). Nitecki

and Franklin (1999) defined the concept of quality as reducing the gap between customers‟

excellent expectations and their perceptions about the services available to them. Service

quality had become a crucial space in services promoting literature because of its impact on

price, gain, client satisfaction, and client retention (Buttle 1996; Bolton and thespian 1991;

Reichheld and Sasser 1990).

Satisfaction of customers with products and services provides competitive advantage for

organisation (Parasuraman et. al. 1996; Kerlin 2000; Zeithaml 2000). A satisfied customer

becomes a regular buyer and also spreads positive word of mouth communication which

results in creating new customers whereas negative word-of-mouth leads to reduction in

customer satisfaction (Richins 1983). Due to the importance of students‟ satisfaction in

determining the sustainability of higher education institutions, there is a need to identify the

determinants for the overall students‟ satisfaction and its behavioural consequences.

OBJECTIVE OF THE STUDY

To analyze the quality factors towards the MBA Colleges excellence among various

categories of higher educational institutions

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METHODOLOGY

This chapter discusses the methodology adopted in the study. The consumer behavior in

service marketing concepts discussed earlier and the review of previous research studies form

the basis for constructing the methodology used in this study. A description of the research

design, sampling design and the tools used for analysis were presented in this chapter.

RESEARCH DESIGN

In order to analyze the research problem undertaken for the study, descriptive study using

primary data was considered appropriate. The descriptive method of research was to gather

information about the present existing condition. The emphasis was on describing rather than

on judging or interpreting. The descriptive approach is quick and practical in terms of the

financial aspect. Moreover, this method allows a flexible approach, thus, when important new

issues and questions arise during the duration of the study, further investigation may be

conducted. Hence, descriptive research was adopted in this study.

DATA

Data required for the study is primary in nature. Thus, primary data is collected by making

use of questionnaire. Questions pertaining to Demographic details of the MBA Students,

level of satisfaction of institutional quality factors, attitude on behavioral outcome, impact of

behavioral outcome and institutional quality factors are included in the Questionnaire.

SAMPLE DESIGN

By adopting convenient sampling method questionnaires are distributed to 533 MBA

Students from various MBA Institutions, who have been studying in MBA in Salem and

Namakkal District. Of which, 10 students have not returned their questionnaires and 13 MBA

Students have not fill the questionnaires in full. Hence, the 510 questionnaires the sample size

of the study.

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1. Table - 1

S.

No.

Category Strength Sample Sample include

error data

1 Arts and science 864 126 130

2 Engineering college 1401 198 210

3 Standalone business school (both Anna

and Periyar university affiliated)

1084 156 162

4 University 206 30 31

Total 3555 510 533

AREA OF STUDY

The geographical area of Salem and Namakkal District was chosen for the study. The main

reason for choosing Salem and Namakkal District was these two Districts have many MBA

Institutions but for the past few years the MBA Admission ratio is comparatively very low

due to many problems, here we need to find the reason for low Admission. That is what I

taken Salem and Namakkal as Study area.

ANALYSIS OF THE INSTITUTION’S QUALITY FACTORS BASED THE LEVEL OF

SIGNIFICANCE GIVEN BY YOU AT THE TIME OF ADMITTING THE INSTITUTION

Garrett‟s Ranking Technique has been used to ascertain the level of quality of the institution.

Under the Garrett‟s ranking technique the proportion position is calculated by victimisation

the subsequent formula:

Percentage Position = 100 (Rtj-0.5) / Nj

Where Rtj =Rank given for ith variable by the jth students

Nj = Number of variables ranked by the students.

The students are asked to rank the six questions relating to the quality of the

institution perceived by them on joining their course.

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By referring the Garrett table the per cent position is converted into scores. Then for

each factor, the scores of each student are added and then mean value is calculated.

The factors having highest mean value is considered to be the most important.

ARTS AND SCIENCE COLLEGES

Scale values as per Garrett ranking technique for first to six ranks are as 40,36,22,12,10, and

6 respectively. The percentage position of each rank is made into score by referring factors is

summed up for assigning rank.

The following table discloses the student‟s agreeability with regard to the level of quality

perceived by them in their institution.

2. Table Students agreeability with regard to the level of institution quality in arts

and science colleges.

Quality factors

1 2 3 4 5 6

Total Total

score

Mean

Score Rank

40 36 22 12 10 6

Place of the college 24 27 25 34 15 0 126 6474 21.42 1

1291 1392 1302 1640 849 0

Academic

performance 60 22 17 0 10 17

126 5966 16.93 3 2314 1187 989 0 487 989

Goodwill of the

Institution 71 19 13 12 10 0

126 5710 15.76 4 2803 1017 716 687 487 0

Infrastructure facility

of the college 11 22 61 0 5 11

126 5013 11.94 5 602 1187 2371 0 244 609

Course fees of the

Institution 0 46 23 19 29 9

126 6041 18.46 2 0 1843 1232 1017 1513 436

Overall opinion

about the Institution 0 8 11 33 22 52

126 5012 11.21 6 0 401 613 1598 1198 1202

Source: computed from questionnaire

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Interpretation

From the analysis in arts and science colleges category, it is found that majority of the

students are agreed that place of the college is the major feature followed by course fee and

academic performance, hence students preferred in location for choosing their institution,

further they focused on course fee and academic performance etc.,

ENGINEERING COLLEGES

Scale values as per Garrett ranking technique for first to six ranks are as 81,64,24,14,9, and 7

respectively. The percentage position of each rank is made into score by referring factors is

summed up for assigning rank. The following table discloses the student‟s agreeability with

regard to the level of quality perceived by them in their institution.

3. Table Student’s agreeability with regard to the level of institution quality in

engineering colleges

Quality factors

1 2 3 4 5 6

Total Total

score

Mean

Score Rank

81 64 24 14 9 7

Place of the college 64 81 23 28 2 0

198 9402 22.17 6 3014 3964 1112 1265 47 0

Academic

performance

69 44 61 21 0 3 198 9975 28.89 3

3386 2610 2896 1004 0 79

Goodwill of the

Institution

51 59 37 29 22 0 198 10540 31.24 1

2998 3105 2131 1208 1098 0


of the college

91 47 0 19 21 20 198 9885 25.68 5

4192 2714 0 968 1017 994

Course fees of the

Institution

0 19 47 76 6 50 198 10080 30.17 2

0 973 2721 3432 141 2813

Overall opinion

about the Institution

11 0 41 72 64 10 198 9914 27.78 4

696 0 2510 3184 3012 512


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Interpretation

From the analysis in Engineering colleges category it is found that majority of the students

are agreed that goodwill of the institution is the major feature followed by course fees of the

institution and academic performance, hence students are preferred the goodwill of the

institution to choosing their institution, further they focused on course fee and academic

performance etc.,

STANDALONE BUSINESS SCHOOLS

Scale values as per Garrett ranking technique for first to six ranks are as 61,49,24,11,9, and 2




4. Table Agreeability with regard to the level of institution quality in standalone

business schools

Quality factors

1 2 3 4 5 6

Total Total

score

Mean

Score Rank

61 49 24 11 9 2

Place of the college 65 51 29 8 3 0

156 6036 32.18 5 2410 1982 1241 275 128 0

Academic

performance

33 28 0 34 32 29 156 6732 38.14 1

1412 1189 0 1498 1386 1247

Goodwill of the

Institution

56 41 38 8 0 13 156 5934 31.86 6

2218 1631 1392 279 0 414


of the college

21 22 0 49 37 27 156 6616 36.91 2

986 1036 0 1867 1614 1113

Course fees of the

Institution

5 0 17 69 32 33 156 6154 33.04 4

187 0 621 2602 1348 1396

Overall opinion

about the Institution

12 19 0 47 50 28 156 6187 33.89 3

486 779 0 1814 1910 1198

Source : computed from questionnaire

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Interpretation

From the analysis in standalone business school category it is found that majority of the

students are agreed that academic performance is the major feature followed by Infrastructure

facility of the college and Overall opinion about the Institution, hence students are preferred

the academic performance to choosing their institution, further they focused on Infrastructure

facility of the college and Overall opinion about the Institution etc.,

UNIVERSITIES

Scale values as per Garrett ranking technique for first to six ranks are as 9, 7,6,4,2 and 2




5. Table Agreeability with regard to the level of institution quality in universities

Quality factors

1 2 3 4 5 6

Total Total

score

Mean

Score Rank

9 7 6 4 2 2

Place of the college 5 8 9 4 4 0 30 930 8.69 4

153 263 298 108 108 0

Academic

performance 4 8 5 0 9 4

30 926 8.47 5 113 267 148 0 285 113

Goodwill of the


30 985 9.74 3 161 161 0 308 269 86


of the college 12 5 4 4 0 5

30 915 8.03 6 353 165 116 116 0 165

Course fees of the


30 997 10.42 1 194 88 0 304 169 242

Overall opinion

about the Institution 2 7 9 0 7 5

30 993 10.02 2 54 238 301 0 238 162


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Interpretation

From the analysis in university category it is found that majority of the students are agreed

that course fees of the university is the major feature followed by overall opinion of the

university and good will of the Institution, hence students are preferred the course fees of the

university to choosing their institution, further they focused on overall opinion of the

university and good will of the university etc.,

FINDINGS

In Arts and science colleges, majority of the students are agreed that place of the

college is the major feature followed by course fee and academic performance, hence

students preferred in location for choosing their institution.

In Engineering colleges category it is found that majority of the students are agreed

that goodwill of the institution is the major feature followed by course fees of the

institution and academic performance, hence students are preferred the goodwill of

the institution to choosing their institution.

In standalone business school category it is found that majority of the students are

agreed that academic performance is the major feature, hence students are preferred

the academic performance to choosing their institution, further they focused on

Infrastructure facility of the college and Overall opinion about the Institution etc.,

In university category it is found that majority of the students are agreed that course

fees of the university is the major feature followed by overall opinion of the university

and good will of the Institution, hence students are preferred the course fees of the

university to choosing their institution.

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RECOMMENDATIONS

Two aspects of the study were likely to be of special interest to policy makers of

higher educational institutions. The study confirmed that perception of institution‟s

quality can result in positive word of mouth and recommendation of institution. It also

confirmed the relationship between institution‟s quality and overall satisfaction and

found that these two constructs had independent effect on student‟s future behavioural

outcome. Service quality of institutions and overall satisfaction of students were

considered to be the criteria even at the global level.

This study suggests that change in overall evaluations start with changes in perception

of the quality of service offered by the institutions. The priority of policy makers is at

the transaction level of institution‟s quality and they must try to improve the

institution‟s quality attributes. Berry and Parasuraman (1991) noted that “Service

quality is the foundation of service marketing”. All the institution‟s quality attributes

are under the control of the educational administrators, the attitude and behavioural

outcome are not. Thus, at the transactional level, institutional quality is the most

important for education administrators.

CONCLUSION

This study has shed new light on the institution‟s quality factors, behaviour, and perceptions

influencing students‟ overall satisfaction. The study explains various factors such as location,

academics, image, infrastructure, cost and personnel as a measure of institution‟s quality.

Further, the results of the study shows that the overall satisfaction, attitude and behavioural

outcome among four categories of institutions. Practically, the findings of this study offer

implications for administrators, policy makers and educationalist to frame suitable strategies

to attract student customers.

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