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SURAT BATCH:-2012-2014


1. INTRODUCTION:Education must provide life-building, man-making, character-making assimilation of ideas. -Swami Vivekananda (C.W., Vol. III, p-309) Swami Vivekananda advocated in the nineteenth century that education should promote not only the intellectual growth of individuals but also build strong moral foundation in them. Evidently, in present times, such a motivation is hardly present. Education is nothing but a means to ensure good perks and benefits. Although the motive has changed with the changing times, the awareness of the need for development of this vital sector is greater than before. The difference is that the reason today is monetary. Regardless of all glamorization of education, it is commonsensical that the manner of doing things has to be right both ethically and commercially. Howsoever contradictory these two things may be the balance has to be sought. This is looks forward to gain the attention of readers towards the commercialization of education on one hand leading to rise in the number of institutes and the relevance of these novice institutes on the other hand. It draws from literature and secondary data available on the web substantiated by viewpoints of different stakeholders related to this field. The subject of focus is management education. Management education is in great demand especially after the change towards liberalization, privatization and globalization. There are several challenges of management education which require change in the character and structure of management education, integration of management education with corporate sector, up gradation of curriculum and course content, designing of different programs for executives, maintenance of an efficient and effective regulatory system of check mushrooming, and emphasis on research. India being the part of global linkage in the aftermath of WTO agreement is becoming a technology driven society. Nearly one lakh management graduates pass out every year in India, providing a tremendous potential to contribute to the creation of a 'knowledge society'.

Education in India is only one among various other elements that have captured the attention of the world. While the United Nations is worried about the presence of a large number of illiterates, various other countries are amazed by the quality of some of the human resources that the Indian education system has produced. The growth of the Indian economy in the recent past and the compulsion to sustain it is also forcing the Indian government to accelerate the process of developing all the branches of the Indian education system. Therefore, it would be very interesting to understand and analyze the various structures of education in India, its present condition and future developments.


The development of management education can be traced back to 18 th century. From 18th century to 21st century, management education has seen lot of changes and development. Management education in India is predominately a derivative of western management thought and practice. Occasionally, management schools draw some inferences from Indian epics, shastras and practices. It may be worthwhile to notice that management itself as a discipline has evolved from fundamental disciplines of philosophy, psychology, economics, accounting, computer science, mathematics, statistics and industrial engineering. In India, management education is seen as elitist. Often, young men and women are attracted to management education not because they need some education, exposure and experience to create something wonderful and hence useful to society but are usually motivated by the positive consequences associated with management education. The origin of management education in India dates back to the middle of the nineteenth century. It shaped up as a result of the reviews, reforms and recommendations of initiatives like the Education Commission (1882), Universities Commission (1902) , Indian Education policy resolution (1904), Governor Generals policy statement(1913), Calcutta University Commission of 1913, Central Board of Advisory Education (1920), The Hartong Committee (1929), The Sapru Committee (1934), Zakir Hussain Committee (1937),Technical Education Committee of the Central Advisory Board of Education (1943), Sergeant Report of (1944) etc. taken up during the evolution of the present Indian higher education system With the rapid industrialization of the economy 4

after independence in accordance with the vision of the then Prime Minister, Pandit Jawaharlal Nehru, the demand for other professionals grew . Investment in large, capital intensive industry like steel, fertilizers, machine tools, hydro projects etc created a demand of well trained managers to handle these ventures. Thus, the beginning of the present day formal management education system saw the light of the day. 21st century India witnessed a sea change in its educational system. Process of liberalization, Privatization, globalization has not only replaced traditional approach with a more efficient Professional approach; but also introduced new age courses in accordance with industry demand which have more economic value in today's time. Management education is one among those which got a new dimension with this changing time. Initially Marketing, Finance and Human Resource Management were considered as functional area of management, but now management education covers much more functional area like Operations, Information Technology, International Business, Supply Chain Management, retail and much more to add to the list. India has witnessed a continuing growth in this sphere of education because of the rising demand of trained management graduates. Management education has become one of the most sought after education today as a result of this; private sector has entered in Indian management scenario and invested an immense amount for this. Management education in India is not very old, after the establishment of the IITs, there was dire need for similar establishments in the field of management education. Thus came into existence Indian Institute of Management Ahmadabad (IIMA), followed soon after by one in Kolkata (IIMC). Starting with the establishment of 4 Indian Institutes of Management Calcutta (1961), Ahmadabad (1962), Bangalore (1973), Lucknow (1984), now management education is being offered as full time/part time MBA programmes by some leading universities in the country Recently and particularly during the last 4-5 years the country has witnessed a tremendous growth in the founding of management institutions most of them in private sector offering management programs in different functional areas of management. Concurrently, there is a mushrooming of B-schools in the country (over 2,500 institutes, of which about 1940 are certified by the All India Council for Technical Education (AICTE)), leading to issues of quality. 5

There was a time when managers were distinct from engineers. Today is the age of cross functionality and techno management; merging engineering and management education. The pioneer in this was NITIE, Mumbai (1963). Today, the IITs play a big role in producing techno managers. Gradually, departments of management were set up in Kharagpur, Delhi, Bombay, Madras, Kanpur and Roorkee within the IIT system. This was a glimpse of the main events in the history of management education. Over the years, a number of institutes began to offer various types of management courses.


In the modern economic scenario all over the world- Management as a stream of education and training has acquired new dimensions. Management is an exciting field where you can have an immediate impact on the operations of any business. The field of Management is dynamic in nature. New tools and techniques are continually being introduced to improve the efficiency, productivity and profitability of any organization. All organizations and their departments, functions, or groups use Management methodologies, which include problem solving techniques and guidelines for various related activities. Education in management should have mainly following aims: Increase the understanding of the factors which influence the conduct of organizations Provide students with the tools and techniques that they may use to influence organizational life. Influence the economy in general. A modern day Business Manager is required to have proficiency in: Functional knowledge of a business organization In-depth knowledge of minimum one discipline of Management. The ability to adapt to new environments at micro and macro levels Problem analyzing and solving. Inter-personal skills. Knowledge of functional interdependencies and adaptability. Communication skills. 6

Self-confidence and motivational skills. Drive to succeed and control with initiatives. Entrepreneurial Skills

Management skills 4. SCOPE

Management education includes undergraduate, post graduate and PhD courses in management. The courses may be full-time, part time, executive, distance learning or specialized. These courses come with a variety of names Master of Business Administration (MBA), Master of Management Studies (MMS), Master in Finance Control (MFC), Master of Public Administration (MPA), PG Diploma in Management (PGDIM), PG Diploma in Human Resource Management (PGDHRM), PG Diploma in Financial Management (PGDFM), PG Diploma in Operations Management (PGDOM), PG. Diploma in Marketing Management (PGDMM) etc However, this has particularly been written keeping in mind full time post graduate courses in management.


Before we analyze management education in India, we must recognize that there are 3 categories of Management Schools which may be labeled as the Institute type, the University type and the Training type. By the Institute type, we mean the IIMs and one or two other Institutes. By university type, we mean management departments in various universities. In training type, we mean training outfits set up by individuals and small firms for offering training programmes of varying quality with purely commercial objectives. In what follows, we concentrate mainly on the Institute-type. In India the management education courses start at undergraduate level, as a threeyear Bachelor Degree in Business Administration (BBA), offered in some colleges in the country. This course provides basic knowledge about management concepts and business structure and follows a yearly / semester wise examination system. This is followed by two years Postgraduate MBA / PGDBM programme. MBA and PGDM education is currently available through residential, full-time, and distance education modes. Most B-Schools follow a semester or trimester examination system. The object 7

of this course is to train the graduates to become managers in corporate sectors in different fields such as marketing, human resource, finance, operations, foreign trade and selected sartorial areas etc. The curriculum first gives more emphasis on general subjects in various areas of management such as business law and ethics, managerial economics, finance, OB-HR, principles of management, marketing, quantitative methods, IT in management etc. In the second year students can opt to specialize in selected functional areas in which they have had foundation courses in their first year. The use of case studies in management education is now universal and ubiquitous. So much so, this pedagogy is now taken for granted by the B-Schools. With ready availability of instructor accessories such as test banks, case teaching notes, and slides, instructors often miss out on the philosophical and scientific foundations of this important teaching pedagogy. They continue to emphasize the rational strategic analysis dimensions of case studies and end up in making the session a do -it-yourself programmable kit. Postgraduate full time management programme invariably requires students to undertake seven - eight weeks summer internship and final MBA project work. Increasingly, the programmes also emphasize behavioral and soft skills. The institutions usually have strong placement cells. Admissions to post-graduate programmes in various schools are done through different entrance tests like CAT, MAT. ATMA, XAT, ICET and own tests conducted by universities. Apart from formal degree programmes in management / business administration, a variety of short-term postgraduate diploma and certificate programmes are being offered for aspirants unable to access the formal full time degree programmes .These part-time programmes are mostly being offered by distance education institutes or through evening/ weekends based programmes by private / autonomous institutions. Several universities are well-known autonomous institutions and offer three-five year Doctoral and equivalent Fellow programmes in management. Admission is based on performance at masters level and Doctoral admission tests and interviews. Process of liberalization, privatization, and globalization has not only replaced traditional approach with a more efficient professional approach; but also introduced new age 8

courses in accordance with industry demand which have more economic value in today's time. Management education is one among those which got a new dimension with this changing time. Initially Marketing, Finance and Human Resource Management were considered as functional area of management, but now management education covers much more functional area like Operations, Information Technology, International Business, Supply Chain Management, retail and much more to add to the list. India has witnessed a continuing growth in this sphere of education because of the rising demand of trained management graduates. Management education has become one of the most sought after education today as a result of this; private sector has entered in Indian management scenario and invested an immense amount for this. According to annual report (2009-2010), published by Ministry of Human Resource Dev, there were 20 Universities and 500 Colleges at the time of independence. At present, there are 504 Universities and university-level institutions (as on 31.12.2009) 243 State Universities, 53 State Private Universities, 40 Central Universities, 130 Deemed Universities,33 institutions of national importance established under Acts of Parliament five Institutions established under various State legislations. There are 25,951 colleges of which, 7,362 are recognized under 2(f) and 5,997 colleges recognized under section 2(f) and declared fit to receive grants under section 12(B) of the UGC Act, 1956).Table (1) shown below shows growth of AICTE approved technical institutes in last five Years. In 2008-2009 the number institutes increased at exceptional rate, thus can be called the golden year in respect to establishment of institutes. In last 5 years the number of AICTE approved colleges has increased by almost 70% in total in various disciplines, whereas number of management institutes has seen growth of 90% in terms of number of institutes and growth of 123% in terms of intake.


Among the various career options available to youngsters nowadays, management is undoubtedly one of the most attractive. There are several factors that contribute to the attractiveness of management as a career option: 1) It is an all-pervasive ingredient for value-creation in any sector. In other words, there is no segment of human Endeavour that would not be benefited from the efficient and effective management of the resources involved. It is not only the industrial and commercial organizations that need to be managed, but also our educational institutions, hospitals, agricultural farms, village communities, government organizations, sports and games activities, religious institutions or any other activities involving human Endeavour and the use of resources. 2) Since management helps in the efficient and effective utilization of resources for the timely accomplishment of goals, there are significant benefits to be achieved by all systems with the addition of management inputs. 3) Managerial capabilities are fairly wide-spread in the society. It is primarily a function of individual initiative and innovativeness, which can be significantly enhanced by the relevant educational inputs. 4) Unlike in the past, management education has become more accessible to larger sections of the society. The increase in the accessibility of management education is more real than what it is generally perceived to be. Though management is perceived to be an elitist profession accessible only to the rich and the sophisticated, data on IIM graduates show that about one-third of them come from families with less than average financial means. 5) Last but not the least, management education significantly enhances the opportunities of employment in high-paying jobs and therefore is an effective tool for social and economic mobility for under-privileged individuals as well as communities.



The focus of Management Education is on industry instead of on the country The Management Schools have been supply driven rather than demand driven The Management Education in India by and large has bypassed the society Utility of Management Education


The growth of management institutions in India in recent times has often been described as a mushrooming growth, suggesting that it is mainly in terms of numbers and often at the cost of quality. Data on the number of institutions established in India from 1950 to 2000 (see table below) suggest that the increase in numbers is in a mushrooming fashion. Table: Growth of Business Schools in India during 1950-2000

Period 1950-1980 (30 years) 1980-1995 (15 years) 1995-2000 (5 years)

No. of B-Schools added

Average annual addition






Source: Adapted from Dayal, I., Developing Management Education in India, Journal of Management Research, 2(2), August 2002, page: 101.


It is obvious that the numbers are growing quite fast, which has been accelerated by the economic liberalization initiated in the country in 1991. According to one estimate, there are more than 2000 business schools in the country now . With the growing numbers, concerns about the quality of management education provided by them are also growing. The differences in quality arise primarily from the fact that these schools are started under different ownership, management and/or accreditation system.



Business schools in India can be classified into six categories. These categories are as listed below: (1) (2) (3) (4) Indian Institutes of Management (IIMs) set up by the Government of India. University departments of management studies Colleges (government or private) affiliated to universities Private or government institutes approved by the All India Council for Technical Education (AICTE) (5) Private colleges or institutes not affiliated to any universities nor approved by AICTE. (6) Private colleges or institutes offering MBA courses in India in collaboration with foreign universities, where the degree is awarded by the foreign university.



The management education plays an essential role in todays dynamic business environment. The rapid trend of globalization and technological changes have made difficult for organizations to survive in the competitive world. As a result the importance of management education has been increased many folds. There are more than 2000 B-schools in India where students pay a massive sum hoping to find their dream career after completing their program. Unfortunately these business schools are not even able to place more than 50% of student except few top B schools. This is really an issue for concern and various reasons can be attached to it. These reasons can be explained from institutes imparting education, from student seeking education, and affiliating authorities. Quality has deteriorated from both ends Institutes imparting education and student gaining education. There are fundamental issues of student input quality. In addition, there are fundamental issues of academic delivery quality as most


run of the mill colleges spend less than 10 per cent of their revenues on actual academic delivery. Most college owners complain of not being able to have enough admission in spite of investing on college infrastructure and startup costs. And those that are able to fill capacity they admit anyone who applies for admission thus resulting in poor input, leading to poor placements. After the introduction of ranking system for business schools, business schools opted proactive approach in making changes, although they focused primarily on product tinkering, packaging and marketing. A study on management education has shown that there will be a fundamental shift in business school product offerings away from traditional MBA programmes and the trends of evolution of management education indicate that knowledge creation is becoming more students based. This will result in various changes such as closer interaction among industry, students and faculty. It is clear that management education will emerge as one of the main distinct of higher learning, due to its growing demand. It has been stated that business schools, if they have to survive, have to focus on research to solve problems of enduring importance and to build such curricula that can actually prepare students to be effective in practicing the profession.



Students learn in many ways through class room interaction. Therefore one of the main challenges a good lecturer faces is how to get students actively engaged. Beneficial teaching methods are those that encourage students to debate on the topic on hand, arouse their curiosity, and lead them to ask many questions as a way for them to know the subject in depth. This process helps students internalize the various dimensions of the management issues considered. It also creates genuine excitement and creativity in the mind-think exercises designed to merge theory with practice. Student engagement through interactive learning events is critical in preparing student for 21st century careers in a global business environment. Techniques like questioning skills, use of worksheets, presentation slides and films help to produce interactive lectures. 14

Co-operative learning is another key teaching methodology in management education. Activities such as, for example, management games and projects help students for their personal as well as professional work skills. These management games give students simulated opportunities to put theories into practice. The simulation technique enables them to learn from each other. And student-centered active learning forces all students to participate in the learning activity. It also helps them fully grasp the benefits of team work in real work situations. In a nutshell, management education should focus on: 1) Being more students centered. 2) Developing case input so as to integrate theory into practice. 3) Including workshops to develop deep thinking on the subject. 4) Giving students more exposure to the realities of the industries. 5) Creating a work environment and adopting project methods those promote discovery learning. 6) Putting more emphasis on themes or simulation, role playing, and socio-drama.



In India there are various bodies and councils that give affiliation or accreditation depending upon subject area. University Grants Commission (UGC) is responsible for coordination, determination and maintenance of standards, release of grants. Professional Councils are responsible for recognition of courses. The statutory professional councils are: All India Council for Technical Education (AICTE) Distance Education Council (DEC) Indian Council for Agriculture Research (ICAR) Bar Council of India (BCI) National Council for Teacher Education (NCTE) Rehabilitation Council of India (RCI) Medical Council of India (MCI) 15

Pharmacy Council of India (PCI) Indian Nursing Council (INC) Dentist Council of India (DCI) Central Council of Homeopathy (CCH) Central Council of Indian Medicine (CCIM)



Management education through BBA, MBA and so on in India have been imparted through three tiers Management Institutes spread over the country. The first tier Institutes are the IIMs created in the sixties with US University collaboration like Harvard and MIT and are now flagship Institutes providing the quality products for the global and national enterprises. The second are those located in cities like Mumbai, Bangalore and other mega cities and do not carry the image of IIMs but these have some brand value links with bodies like All India Management Association and are spread over in hundreds across the country. The third tier Management Institutes located in small towns and growing Hill resorts like Rishikesh in Uttarkhand and they all brand themselves as approved by All India Council for Technical Education (AICTE) and other National Quality Control bodies like National Accreditation Board for Education and Training and so on. Many of these MBA Certificate Institutes, as many as 4000 plus, have mushroomed across the country without any quality standards in teaching, research and handholding the students and make them employable. In Bangalore alone there are as many as 300 MBA Dukans - as one Tea Shop Keeper remarked! These third tier institutes spend enormously on false Advertisements and claim to have top class faculty provide free lap tops, foreign trips and 100 per cent placement in branded banks, giant retail and manufacturing companies and so on. Some of these third tier institutes in small town are affiliated to State Universities like VTU in Karnataka and other State universities, where the seats are divided between merit students who pass the Common Management Aptitude Tests (like C-MAT) and State controlled entrance tests (like G-CET in Gujarat) and so on and the remaining by payment of hefty donation hidden as fees to the Institutes. Sitting in Delhi bodies like UGC, AICTE have all earned corrupt reputation for their quality control and standards. 16

The BBA , MBA programmes launched by hundreds of Institutes across the country have become as shops for degrees and the quality standards have gone down over the years and poor quality standards are reflected in poor teaching faculty, poor research and consulting leading to poor placement of the students who pass out from such Institutes . The quality of these Institutes depend on critical factors like I. II. III. Quality of Faculty recruited Quality of Infrastructure provided Quality of Library and brainstorming discussion groups and seminars led by top Professional Management Gurus IV. Last but not the least is the placement provided by the Institutes based on industry needs

Quality of Faculty: Those who do not get jobs in industries , where salaries are higher, get into teaching jobs and the third tier Institutes are happy to give them teaching work and if you browse the flashy bulletins of these MBA Shops we never find the names of the faculty who teach subjects like Marketing, Finance and HR subjects. Despite the UGC requirements many of these third tier Institutes do not stipulate PhD requirements and even if they stipulate it is hard to get PhD Faculty because they prefer to get into First Tier Institutes than the third tier ones. Institutes also do not try to get Managers s from Industries to come and share their live experience which itself will go a long way to sharpen the students learning


A few such activities commonly being undertaken by Management schools for enhancing quality as well as resource support are briefly described below: Lack of highly qualified and experienced faculty member Governmental Body for Management Education Curriculum Design and Developing Material Relevant to the Indian Context 17

Ethics and Values in Management schools Development of Industry Institute Linkages Emphasizing Research Inculcating a Global Mindset Multiple Perspectives

Exposing to Real Business Issues 14. PLACEMENT AND EMPLOYABILITY ISSUES

Satish Pradhan Chief of HR of Tata Sons remarked that Job and Placement events in IIMs have become like cattle fairs of Pushkar in Rajasthna, where good looking and smart cattle are sold for the highest bidder. Similarly smart looking IIM Graduates are picked up from big bidders like Banks and Multinationals. He received angry protests from IIM Heads Unfortunately the third tier Management Institutes are not even able to hold cattle fairs because their MBAs are found to be not employable and employability is now the new mantra of the Recruiters. The three partners involved in producing Management Graduates in the third tier have to be blamed for the poor placement viz the Bodies like AICTE, Universities which design the curriculum, the Institute Faculty who teach according to the curriculum and finally the Industries who recruit them. If the curriculum is unrelated to the needs of the Industries the fault lies with the Bodies who prescribe the Curriculum and the Industries who never tell their requirements to the Institutes who produce the Management Graduates At the end the graduates suffer Infosys spend lot of their own funds to make their recruits fit for them for several months after they are recruited. Why not industries spend some time to tell the Institutes their skill sets and how they can be employable for them. Quality Institute should take a lead to bring together the Third Tier Institutes, The Curriculum Prescription bodies like the Universities, the AICTE and the Industries who finally recruit th e MBAs and develop standards of teaching and subsequent placement In the end Quality Mantra in Management Education is not about ISO Certification or Accreditation but it is all about how the Management Graduates find good jobs to meet the needs of the fast growing industries and the economy.




Some questions in management education must be answered before one formulates its future direction. These are: I. Starting with the objectives i. Is management education contributing to country's global

competitiveness? ii. iii. Contributing to its GNP and Contributing to increasing the welfare of its people?

Is MBA type of education necessary to achieve the above objectives or in company programmes will do? What exactly is the deficiency of the in company managers which must be corrected? II. III. a) Are client orientation and conceptualization from across companies antithetical? b) What is a right mix of tailor making courses to suit client needs and offering thematic courses? IV. How to create a partnership between business schools and their client group, be they companies or public institutions? V. How to carry the management conviction to people in Government and public sector, who view application of management as against their self interest and view management profession not as a facilitator but as a rival? VI. How to prepare global managers? How far is management culture and context specific? Is Management knowledge or wisdom? Can it be taught?




Management is steadily emerging as a career option for the educated youngsters in India. As the sectors that are to be managed are diverse and complex, it is desirable to have managers with a variety of graduate level backgrounds such as engineering, physical sciences, social sciences, arts, humanities, and so on. In fact, there are top rated b-schools that actively seek such diverse backgrounds among their students, as they believe that such diversity would contribute towards the enhancement of programme 15 qualities. In this context, it should also be noted that undergraduate programmes in management have not made much impact primarily for the reason that these students have not had the chance of developing specialized knowledge of at least some aspects of the industrial/commercial organizations they would be managing, such as engineering, commerce, psychology, etc. It is essential for the aspiring managers to develop specialized professional knowledge in some disciplines related to

organizational activities. Capping such knowledge with a post graduation in management would equip them for an accelerated career in management based on professional knowledge rather than trial and error learning. As per the words of Cyrus Guzdev, CEO, Air flight Express, the state of management education in India, "The B-schools are not sufficiently in touch with the real world, and the pace of change, which is challenging management through today, is threatening their credibility". So, it is an immediate requirement to shape the management education in accordance with the global changes to improve competitiveness with the total quality management. Management education need to be holistic, targeted and customized with aim to remove the gap that exist between industry requirements and academic curriculum focusing on attitude, corporate awareness, grooming and developing managerial skills. So, it can be concluded that the existence of an institution shall depend upon the quality of education and training offered. Now principle of Darwin holds well even today that fittest that would survive. New it is the need to make it as per the demand for managers for international Business Information Technology, medium and small scale industries and for service sector, because in future fittest will survive for which quality product service will be the key aspect. To ensure quality in


management education, inclusion of BPR, IDR & ISO9000 and ISO1000 etc. can be utilized... Now, we would like to conclude in the words of Mother Teresa, a lady who believed in the power of one individual's contribution. "We ourselves feel that what we are doing is just a drop in an ocean. But the ocean would be less because of that missing drop!"



REFERANCES Researchy Article -Emerging Issues in Management Education in India by Sarita Chaudhary, VSRD International Journal of Business & Management Research Vol. 1 (3), 2011 Rationalizing Management Education in India: The Need of a New Approach by V. K. Nangia, Vinay Sharma, Ritika Mahajan (National Conference on Emerging Challenges for Sustainable Business 2012) Management Education in India - Need for Quality Standards By Dr Manu N Kulkarni Management Education in India A case study by Natashaa Kaul, ASIAN JOURNAL OF MANAGEMENT RESEARCH Volume 2 Issue 1, 2011 Management Education in India:Trends, Issues and Implications by Sanjeev kumar and M.K.Dash Research Journal of Internatonal Studes Issue 18 (January, 2011) MANAGEMENT EDUCATION IN INDIA: YESTERDAY, TODAY AND

TOMORROW by Prof. V. Ranganathan, September, 1993 INDIAN INSTITUTE OF MANAGEMENT BANGALORE, Professor of IIM Bangalore Management Education in India: Issues & Challenges by Shweta (Apeejay School of Management, New Delhi, India), Manoj Kumar (Maharshi Dayanand Saraswati University, Ajmer, India) Journal of Management & Public Policy Vol. 3, No. 1, July-December 2011