Management Education in Nepal: Prospects and Challenges

1. Management Education in Nepal: Prospects and Challenges - Bijay KC Professor South Asian Institute of Management

2. At the micro level educational achievement and economic success are closely linked.

3. GLOBAL TREND IN HIGHER EDUCATION • Rapid growth of information and computing technology - Distance and on-line learning, Internet By offering on-line education programs many universities have changed the process and organization of higher education and have made their programs accessible in many parts of the world.

4. GLOBAL TREND IN HIGHER EDUCATION • Public and private sector participation in higher education - institutional innovations and market oriented education • Higher education free from strict rules and regulations of the government and universities. • Business houses taking initiatives to establish their own universities, known as corporate universities

5. GLOBAL TREND IN HIGHER EDUCATION • Higher education in many countries being seen as a means of trade • With a view to respond to the need of the market and change in the mix of job universities offer a wide range of new courses and trainings programs • Additional emphasis has been placed to adult learning and working executives.

6. TREND OF HIGHER EDUCATION IN NEPAL • The era of higher education in Nepal began in 1818 AD with the establishment of Tri-Chandra College. • Establishment of Tribhuvan University in 1959 • National Education System Plan was adopted in 1971.

7. MAJOR STRUCTURAL CHANGES • Emergence of multi-university system • Phasing out of certificate level • Introduction of three year bachelor degree • Involvement of private sector • A wide range of market-driven programs

8. MAJOR STRUCTURAL CHANGES Increasing involvement of private sector in higher education has also led to commercialization of education, over-supply of manpower relatively to market demand, low quality, and loss of true sprit of education.

9. Development of Management Education • Six universities and two medical institutes granting their own degrees. • About half a dozen management institutes under private sector providing Master level programs in management. • Tribhuvan University grants both a Bachelor and a Master of Business Studies degrees. Recently it has also started offering a four-year Bachelor in Business Administration degree.

10. Development of Management Education • Management education started in Nepal in the form of commerce education in 1954 when the government established a commerce department in the then government-run Tri-Chandra College. • Tribhuvan University offered the post-graduate level in the commerce education in 1961

11. Development of Management Education • In 1971 the government made radical changes in the education system of the nation and introduced National Education System Plan - a milestone in the history of management education • Institute of Business Administration, Commerce and Public Administration • The Institute was renamed as Institute of Management in 1976

12. Development of Management Education • Kathmandu University in 1991 • Purbanchal University in 1995 • Pokhara University in 1996. • Lumbini Boudha University in 2005

15. Developing a Program for Management Education • Management learning is a continuous, life long process. • The first part is dealt at certain university and school level. • The second part is a life long learning process for managers

16. Potential stages of manager's organizational career • entry level • first supervisory assignment • manager of a particular functional unit • general manager: manager of a set different functional units. • Executive level

17. Forces Affecting Management Education • During last one and half decade, Nepal has seen fast development in infrastructure • A change in the trade structure and occupational pattern in Nepal • Rapid growth in media, information technology and use of computers in the country. • Growth of financial sector and non-governmental organizations • Growing Thrust on Privatization and Economic Liberalization

18. Forces Affecting Management Education • Integration with Global Economy • Unstable political regime • Ambiguous legal framework • Weak governance

19. Future Trend • Competition and efficiency will be main considerations of business enterprises in Nepal • Nepalese business will be dominated by joint ventures, especially those with neighboring countries, and by small and medium-scale enterprises. • Entrepreneurship will be more pronounced.

20. Future Trend • The joint venture enterprises will provide more job opportunities to Nepalese nationals at lower and middle management levels • At the highest management level management team will gradually replace the individual Chief Executive Officer. • Decision making process will be short and fast due to increasing use of faster and more efficient information handling and communication system. This will lead to flatter organization chart, with more staff at the middle level.

21. Future Trend • The need to develop infrastructure and alleviate poverty will lead further expansion of development sector, leading to increasing demand for managers able to implement program effectively to reach the target group. • Service sector will expand rapidly • Nepalese business will be more export oriented, regionally and globally. International business will be more important.

22. Future Trend • The social structure and societal values are undergoing a change and the pace of change will be fast in the urban areas. • Aspiration of people is rising fast, making them more demanding and pressing.

23. Demand and Supply – A Gap • In general, supply of management students exceeds the demand. • There is short-supply of management students having knowledge and skills needed by the market. • A market for management students do exist and is expected to expand

24. Problems • Shortage of qualified and competent faculty • Shortages of teaching materials based on local realities. • Lag behind in research activities. • Weak interface between business and academia • Inadequate infrastructure.

25. Management Education in Nepal: The Road Ahead • Political instability created by the Maoist rebellion • While no one knows the actual market size for management education, one can be assured that it is small. • With real growth averaging about 2.5% per annum, expanding and new business formation is relatively low. Thus, when new, private schools enter the market; competitive pressure is placed on existing institutions

26. Support from NRN • Management Education Development Fund • Placements and internship • Establish a link with reputed management institutes and coordinating their activities.

27. Conclusion • Competitive pressures on Nepal substantially increase with its entry into the WTO. • As a partner in the global trading system, Nepali businesses will now have global opportunities for exports, but they also will face intense pressures to compete.

28. Conclusion • Sound strategic management, coupled with a global vision and a sound grounding in financial and operational decision making, become more important than ever. • This, in turn, requires managers who can think globally, act locally and manage effectively • The need for educated, professional managers in all sectors of the Nepali economy is now greater than ever. Management education in Nepal must continue to develop if it is to fulfill this need.

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