Impact of Globalization on Business and Management Education Essay Example

companies like Maruti, Toyota, Ford, and General Motors have experienced significant business growth. Meanwhile, white-collar employees of BPOs, IT Service Companies, Pharmaceutical giants, and Manufacturing industries report similar benefits. However, these successes raise questions about exploitation trends in the private sector.

Only individuals from the middle and upper middle class families with college degrees and good jobs seem to support globalization. Farmers, who are committing suicide, and unskilled and semi-skilled laborers continue to face poor conditions, low pay, and limited jobs due to archaic labor laws that prevent reforms. Despite the anti-globalization lobby's opposition to multinational companies entering India, Indian industry has never been in better shape. The success stories of Indian industry, including Tata after its acquisition of Tetley Tea, Daewoo Commercial Vehicles, and Corus Steel, demonstrate that it can compete in the global market. Companies like Infosys, Wipro, Ranbaxy, Cipla, Bharat Forge, TVS; Mahindra experienced historic growth post 1991.

Although companies like Bharti have emerged positively after the liberalization of India's telecom sector, Reliance, the behemoth of Indian industry, has continued to prosper. Nonetheless, despite the closed-door economy until 1991 failing to create the intended India, many still feel uneasy about globalization.

In the 1990s, economic reforms were implemented in India to introduce competition and dynamism into the organized industry. The goal was to break the state of inertia and promote dynamic growth through competitive forces. Therefore, it is important to evaluate the success of economic liberalization and globalization in altering the market structure for greater competitive freedom, which is expected to have a positive impact on industry performance.

The objective of the research is to examine the alterations in

market structure across various industries during the 1990s compared to the 1980s, specifically focusing on the number of units, size structure, and ownership patterns. The study will use unit level data for organized industry and evaluate their performance in terms of efficiency and productivity. It aims to investigate how firms' competitive strategies, pricing behavior, entry and exit have been impacted by the new economic environment. Furthermore, it will analyze how financial sector reforms and capital market development are changing the financing structure of corporate sectors that form a crucial part of these industries.

Effective corporate governance is essential for improving the financial performance of corporations, especially given the separation of ownership and management and potential conflicts between shareholders and managers. Mismanagement or misuse of funds can result in poor performance or even bankruptcy, emphasizing the significance of proper governance. This issue affects various economies, including developed ones.

In this study, the focus is on examining corporate financing, governance, and performance/bankruptcy issues through the use of firm-level data. Additionally, a multi-sector simultaneous equations framework will be applied to investigate the connections between wages, employment, productivity, and output growth in India during both the 1980s and 1990s. The study will also estimate the impact of exports, imports, and import substitution on output growth across various industries. Through this, the effects of India's openness to trade and technology imports on employment and wage growth in different sectors of the economy can be determined.

The study will focus on the impact of economic and trade liberalization on the income of primary factors of production, specifically through its effects on economic rents. Additionally, the analysis will investigate how the elimination of rents

affects the estimates of total factor productivity.

The research will also examine disinvestments in India during the 1990s and their impact on industrial performance. The study will aim to determine whether divested Public Enterprises (PEs) have performed better and to what extent. Performance will be evaluated based on criteria such as profit margin, investment and output growth, technological development and productivity, employment, and the inverse of debt-equity ratio. The study will further investigate whether any increase in profitability is due to greater monopoly power after disinvestments.

The proposed research aims to investigate two significant areas in the Indian industry, namely mergers and takeovers, and the correlation between urbanization and industry. Despite the growing prevalence of mergers and takeovers following reforms, there is a lack of research on their effects on Indian industrial firms. Thus, this study will concentrate on comprehending how these activities influence firm performance. Furthermore, the investigation will explore how large urban settlements can enhance productivity in industries and increase competitiveness for firms when compared to those located in small towns or medium-sized cities.

It is necessary to examine the correlations among infrastructure investment, industrial concentration, and convergence potential. The investigation requires analyzing both methodology and analysis. Economic reforms have forced firms to improve their technology, prompting research into the impact of technological advancements on Indian industrial firms. Topics for scrutiny include how technological progress affects the labor market and how technological changes contribute to a firm's growth.

The objective of the study is to investigate how the usage of information technology affects productivity, competition, and employment in diverse industries in India. In addition, an examination of the Indian business sector indicates that local

policies and institutions have facilitated entry into global markets, leading to a substantial increase in trade's contribution to GDP. Over time, India has steadily achieved annual growth rates that have escalated from 1% in the 1960s to 5% in the 1990s and currently exceeding 8%. Consequently, residents of India now receive increased salaries and witness diminished poverty levels.

Not only has the software and services sector dominated international mergers and acquisitions in the industry, other industries like auto ancillaries, pharmaceuticals, telecom, agro-chemicals, and steel have also joined the list. This suggests that both old and new economy sectors are now involved in mergers and acquisitions. Moreover, even smaller auto ancillary companies can participate as there are no stereotypical restrictions on their involvement. India's current liberal investment policy and globalization also benefit the country. However, it is crucial to prioritize using reserves for higher domestic investments.

For India to achieve faster GDP growth, it is crucial to increase investments. However, there must also be a focus on enhancing education and health services while providing social protection for labor market changes. It is worth noting that industrialization and its resulting climate change will disproportionately affect developing countries and impoverished individuals.

There is a consensus among scientists that human activity is causing potentially catastrophic global warming. India must demand effective international cooperation to address this issue. To instill competitiveness in Indian business, the following strategies can be implemented: improving infrastructure to meet global standards, enhancing transportation facilities to decrease time and cost, government initiatives to promote investment opportunities, adopting backward integration for supply chain optimization, encouraging unbalanced growth to facilitate development, establishing direct links between educational institutions and businesses for hands-on

experience for students, and forming guilds within specific industries for discussions on benefits, drawbacks, and opportunities.g., investment, partnership) among domestic and foreign companies in various industries * Embracing technological advancement in industries * Incorporating the Just In Time (JIT) technique in business practices. Overall, the Indian government is actively promoting competitiveness by implementing initiatives such as renewing and modifying export-import policies, reducing bureaucratic obstacles, increasing SEZ facilities and prioritizing their expansion, establishing a free information bureau for up-to-date information on various fields of operations in all states, and advertising investment and partnership opportunities among domestic and foreign companies.

The prohibition of free riders in various sectors, as well as the facilitation of mergers and acquisitions, subsidization of scarce areas, and the exploration of alternative development strategies are essential. In the post-globalization era, management education plays a crucial role. It is currently at a crossroads in India, as the number of B-schools has dramatically increased alongside rising benchmarks since the turn of the millennium.

The Indian B-Schools seem to have also been affected by globalization, similar to the industry. However, the expansion in the number of B-Schools does not appear to align with the challenges posed by the globalization of Indian Management Education. Out of the 1500 B-Schools in India, only approximately 200-250 may meet quality standards. If the free movement of faculty and operations becomes a reality for the globalization of Management Education in India, the Indian B-Schools will face significant challenges. To overcome these challenges, initiatives such as granting affiliated colleges more autonomy in finance and academics, and strengthening the curriculum in autonomous institutions can be implemented as solutions.

Enhancing the capabilities of affiliated colleges will require

financial autonomy, while academic autonomy will be instrumental in driving this process forward. To improve established institutions, it is crucial to bolster the curriculum with a particular emphasis on elevating Faculty & Research standards, promoting Industry Interaction, utilizing Technology and implementing the Case Method. Nowadays, entrepreneurs from various fields such as steel magnates, bio-tech experts and even event management professionals are keen on expanding their businesses across continents in response to the widespread use of the term 'global economy'. The reduction of governmental controls and open economies have enabled companies to overcome geographical barriers. After socialist economies fell, a new world order emerged which blends laissez-faire capitalism with controlled socialism.

Amidst a haze of prosperity, countries are competing for a portion of the economic pie. Knee-jerk protectionism and old fears have vanished as governmental controls have been lifted, unleashing the potential of a global economic order. However, human resources are the most crucial component for sustaining this growth. Considering the need for a highly skilled and talented workforce, governments worldwide are investing in education and skill development. Efforts to establish new engineering schools and large universities, as well as encourage collaboration among educational institutions, are being made. Increased investments in higher education and greater emphasis on high-quality primary education will lead to the most significant success stories in the coming decades, as more well-educated and equipped talent emerges. Consequently, the task of selecting talent becomes increasingly challenging.

As the demand for more workers increases, companies are facing difficulties in finding ideal candidates. This challenge is predicted to intensify in the future. Simultaneously, traditional educational routes for students are being exchanged with novel prospects and alternatives, leading

them to make arduous choices concerning their college options, fields of study, specializations and approaches. Frequently these decisions are influenced by prevailing trends or beliefs.

The majority of new professionals enter their field without considering their genuine aptitude. They rely on being in the right place rather than pursuing what they truly enjoy and excel at. Thus, discovering one's true potential and expertise requires both experience and trial and error. Additionally, with the emergence of new higher education institutions globally, standing out to potential employers has become a more challenging task.

As the competition to stand out increases, it is important to highlight unique abilities and strengths. Graduates from less common locations will be particularly affected, as a class system based on their institute of study rather than merit may emerge. This will negatively impact both companies and job seekers, as strict elimination techniques may prevent top talent from being hired. However, the chaos of this system may eventually lead to the emergence of order. In a global economy, talent can be found and captured across borders, creating a definitive benchmark for recognizing the quality of human resources.

In an authentic global economy, surface characteristics will be insignificant, but potential and competence will be essential. Hiring barriers will be blurred, so the capacity to add value to a worldwide enterprise will be fundamental. The competition will be fair and impartial, granting opportunities to everyone according to their actual merits. The advent of this novel stage has already started.

There is increasing demand for global benchmarks in human resources among companies, while academics advocate for merit-based candidate selection systems. To maintain India's position as a major contributor to the

global IT human resources pool, it is essential to adopt global talent selection standards. To answer this need, the Professional Aptitude Council was established by a group consisting of companies, hiring experts, technology experts, psychologists, government agencies, and test development experts. PAC's goal is to create and administer industry-standard exams globally for the IT industry. These tests provide accurate assessments of an individual's skills and aptitude, indicating their ability to perform well in an IT job within a global business environment.

During the time of independence, Indian economy was in need of bureaucratic management skills for development. However, after 50 years of independence, the Indian economy has matured and now requires entrepreneurial management skills. Unfortunately, the management schools have failed to meet this challenge, indicating a need for an overhaul in management education. The growth of management education began with the first M.B. program initiated by the Department of Commerce of Andhra University in 1950.

During the 1950s and 1960s, commerce education in India experienced a remarkable expansion that culminated in the establishment of a partnership between Harvard Business School and the Indian Institute of Management located in Ahmedabad. In subsequent decades, especially during the 1970s and 1980s, management education witnessed a surge across the country, resulting in significant growth of management institutes. Today, around 14,000 management school graduates enter society each year.

Due to high demand, supply of professional management courses has become limited, with most management institutes focusing on academic courses and functioning as commerce colleges. It is crucial to restructure management education to address the challenges of the 21st century. Alvin Toffler's book 'Future Shock' emphasizes the need for a super industrial education system that

utilizes objective methods from the future instead of relying on past approaches to prevent future shock.

Alvin Toffler and Peter Drucker, two prominent American thinkers who have predicted upcoming shifts in socio-economic life, believe that education should adjust to the future.

The world economy would experience a significant impact due to the shift towards a "service revolution" in the 21st century, where the service sector would surpass the manufacturing sector in terms of national income. This change would result in society no longer being classified as socialist or capitalist.

The primary driver of economic growth would be Knowledge and Information, rather than 'capital'. As a result, we would see the emergence of knowledge workers, knowledge societies, and knowledge executives. The information technology revolution would lead to the eventual elimination of paper-based business practices and the phasing out of physical offices.

In the future, business organizations will take on a flat, networking, and ad-hoc structure, becoming virtual and learning organizations. This shift will present a more challenging and difficult task for Personnel Managers as they must now manage knowledge workers. Future managers will focus more on HRD rather than HRM as the main activity.

Japan has already developed innovative methods of manufacturing, including electronic cottages and lean production. These approaches will revolutionize the factory system of mass production and lead to the production of diverse items. As a result, corporate organizations around the world may face a crisis of identity due to the shift away from mass production.

8. The future of marketing management will undergo significant changes due to the information boom and communication revolution. This will lead to direct contact between consumers and producers, resulting in the

disappearance of the traditional chain of distribution. New concepts like Sky Marketing, Internet Marketing, Market Ownership, Solution marketing, and delighted customers will dominate the landscape.

Toffler's prediction is that the world will regress into self-sufficient, isolated blocks. As a result, future careers will be knowledge-based, information-intensive, highly mobile worldwide, exceedingly lucrative, and situated on a fast track.

There is a swift evolution occurring within the Indian corporate sector and as such, it is imperative that management education be re-engineered to cater to future scenarios. Locally, there must be a focus on enacting the new Management Education Act. To equip future global managers with requisite skills, the following are necessary: 1. Information Management Skill 2. Information Technology Management Skill 3. Decision-making in dynamic environments.

Management schools will need to cultivate several essential skills in their students, including H.R.D. Skills, Innovation and Credibility, Service Sector Management Skills, Time Management Skills, Stress Management Skills, Environment Management Skills, Entrepreneurship, and Customers Services Management Skills. To achieve this goal, Management Institutes will be required to introduce an assortment of new Service Sector Management Courses such as Travel and Tourism Management, Hospital Management, Construction Management, Hotel Management, Consultancy Management, NGO Management, Advertising Management, Banking and Insurance Services Management, and Farm Management.

It is essential to customize courses and update syllabi regularly to meet specific needs. However, our MBA program lacks specialization, which requires MBA students to have expertise in at least one area.

Management can be considered a form of art in which it is necessary to incorporate values related to work.

The goal for management education is to transform it from using a "Class Education" approach to a "Mass Education" approach while maintaining high quality. The

aim is for management institutes to produce globally competent managers who possess the necessary knowledge, attitude, skill, insight, and foresight to tackle 21st century challenges. Sources: 1) ICWAI's Management Accountant publication 2) www.economist.com

Included in this information are sources related to the quality of management education, such as the book "Quality of Management Education" by P.P. Arya and Suresh K. Chaddha, published by Deep and Deep Publication Pvt Limited, and the website www.

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