impact of organizational culture and performance …€¦ · 3 declaration i hereby declare that...
TRANSCRIPT
1
IMPACT OF ORGANIZATIONAL CULTURE
AND PERFORMANCE
ON SOCIAL ACCEPTABILITY OF PRIVATE SELF
FINANCING ENGINEERING COLLEGES
IN KARNATAKA AND KERALA
Thesis Submitted to the
Padmashree Dr. D. Y. Patil University,
Department of Business Management
in partial fulfillment of the requirements for the award of the Degree of
DOCTOR OF PHILOSOPHY
In
BUSINESS MANAGEMENT
Submitted by
PAULACHAN K.J.
(Enrollment No. DYP-PhD-116100010)
Research Guide
Dr. R. GOPAL
DIRECTOR, DEAN& HEAD OF THE DEPARTMENT
PADMASHREE Dr. D.Y. PATIL UNIVERSITY,
DEPARTMENT OF BUSINESS MANAGEMENT,
Sector 4, Plot No. 10,
CBD Belapur, Navi Mumbai – 400 614
January 2014
2
IMPACT OF ORGANIZATIONAL CULTURE
AND PERFORMANCE
ON SOCIAL ACCEPTABILITY OF PRIVATE SELF
FINANCING ENGINEERING COLLEGES IN
KARNATAKA AND KERALA
3
DECLARATION
I hereby declare that the thesis titled “Impact of Organizational Culture and
Performance on Social Acceptability of Private Self Financing Engineering
Colleges in Karnataka and Kerala” submitted for the Award of Doctor of
Philosophy (Ph. D) in Business Management at Padmashree Dr. D.Y. Patil
University, Department of Business Management is my original work and the thesis
has not formed the basis for the award of any degree, associate ship, fellowship or
any other similar titles.
The material borrowed from other sources are incorporated in the thesis has been
duly acknowledged.
I understand that I myself could be held responsible for plagiarism, if any declared
later on.
The research papers published based on the research conducted out of and in the
course of study are also based on the study and not borrowed from other sources.
Place: Navi Mumbai. Signature of the Student
Date: Enrollment no: 116100010
4
CERTIFICATE
This is to certify that the thesis entitled “Impact of Organizational Culture and
Performance on Social Acceptability of Private Self Financing Engineering
Colleges in Karnataka and Kerala” and submitted by Paulachan K. J. is a
bonafide research work for the award of the Doctor of Philosophy in Business
Management at the Padmashree Dr. D. Y. Patil University Department of Business
Management in partial fulfillment of the requirements for the award of the Degree of
Doctor of Philosophy in Business Management and that the thesis has not formed
the basis for the award previously of any degree, diploma, associate ship, fellowship
or any other similar title of any University or Institution.
Also it is certified that the thesis represents an independent work on the part of the
candidate.
Place: Navi Mumbai
Date:
Signature of the Signature of Guide
Head of the Department
5
ACKNOWLEDGEMENT
I raise my heart with gratefulness towards the Good Lord for the providential
succour provided towards me all through my life, especially during the three years
of my association with Padmashree Dr. D.Y. Patil University for my Doctoral
studies.
I am indebted to Padmashree Dr D.Y. Patil University and the Department of
Business Management for giving me this great opportunity to have my doctoral
studies under its protective wings.
I thank Dr R. Gopal my Guide & mentor, who inspired and encouraged me to
complete my work. My heartfelt gratitude is due for his scholarly guidance, constant
availability, his unmatched human concern and wholehearted support. Dr Gopal has
always helped me to sharpen my intuitions and also has enabled me to achieve a
high level of academic sophistication. I am highly indebted to him for this work of
mine and the personal growth in me as an academician.
I gratefully acknowledge the advice and support of Dr Pradip Manjarekar, Professor
and HOD of the Research Extension Centre and also all my colleagues and staff of
DYPDBM in rendering their support during my life in Mumbai.
I lift up my heart in prayer to my Late Cardinal, His Eminence, Varkey Cardinal
Vithayathil, CSsR, whose blessings are on me from his eternal abode, my Arch
Bishop, Mar George Cardinal Alenchery, my auxiliary bishops, Mar Thomas
Chakiath, Mar Sebastian Adayanthrath and Mar JosePuthenveetil for their paternal
love and affection. I express my profound gratitude to the entire Archdiocesan
family together with Naipunnya team for their unwavering support, love and
encouragement. I wish to place on record my gratefulness to the Parish Priests and
Parishners of Nerul and CBD under whose constant care I stayed during these three
years in Mumbai.
I remember with gratitude my dear father, in his eternal bliss, who placed all his
dreams on me, my mother, sisters and families, relatives, friends, collaborators and
my own parishners of St. Thomas Karumalloor for their love, prayers and concern.
6
TABLE OF CONTENTS
Chapter
No
Sub
Section Chapter Name
Page
No.
Declaration i
Certificate ii
Acknowledgement iii
Table of Contents iv
List of Tables vii
List of Figures and Graphs xiii
List of Abbreviations xv
Executive Summary xvi
1
Introduction 1
1.1 Definition to Higher Education 3
1.2 Academic Structure of Higher Education in
India 9
2
Review of Literature 12
2.1 Organizational Culture 12
2.2 Organizational Performance 46
2.3 Social Acceptability 57
2.4 Literature Gap 64
3
Objectives and Research Methodology 65
3.1 Statement of the Problem 65
3.2 Utility of the Study 66
3.3 Scope for Future Research 67
3.4 Scope of the Study 67
3.5 Statement of the Research Objectives 69
3.6 Hypothesis 70
3.7 Research Methodology 71
3.8 Data Processing 77
3.9 Limitations of the Study 77
7
4
History of Higher Education in India 79
4.1 Ancient History of Education in India:
Brahmanical Age 80
4.2 Buddhist Education 88
4.3 Higher Education in Mediaeval India 90
4.4 Higher Education in India after
Independence 97
4. 5 Growth of Higher Education till 1980 101
4.6 Growth of Higher Education from 1980-2000 102
4.7 Growth of Higher Education from 2000
onwards 103
4.8 Level and Type of Higher Education
Institutions in India 113
4.9 Academic Qualification Framework in India 114
4.10 Academic Regulatory Framework in India 117
5
Emerging Issues and Challenges in Higher
Education 132
5.1 Challenges of Present Higher Education
System in India 136
5.2 Public-Private Partnership and Institution-
Industry Interface 146
5.3 Status of Higher Education and Research in
India 148
5.4 Recent Legislative Reforms in Higher
Education in India 155
6
Privatization of Higher Education in India 162
6.1 Introduction 162
6.2 Education and Privatization 162
6.3 Basic Principles of Funding on Education 164
6.4 Privatization of Education in India 173
6.5 Current Trends in Privatization of Higher
Education 185
6.6 Cost Recovery Measures in Private Funding 187
6.7 International Comparisons 188
6.8 Affordability of Higher Education 191
6.9 Action Points for Making Higher Education
Affordable for All 193
6.10 The Legal Conundrum of Privatization in
India 196
6.11 Philanthropy or Privatization? 211
8
7
Emerging Opportunities: India’s New Role
on the Global Arena 218
7.1 Introduction 218
7.2 Imperativesof Inclusive Growth 219
7.3 Emergence of New Types of Providers 224
7.4 Indian Higher Education Sector:
Opportunities Ahead 228
7.5 Higher Education in India: Current State of
Play 229
7.6 Transformation from Elite to Mass Higher
Education 230
7.7 India: Prospects for Emerging as a
Knowledge Economy 231
7.8 The Government of India Initiatives to
Impact Economy Through Higher Education 233
7.9 Internationalization of Higher Education in
India and its Impact on Economy 236
7.10 Modern Trends in the Higher Education 237
7.11 Indian Education Sector: Challenges Facing
Growth 239
7.12 SWOT Analysis 244
7.13 Higher Education in India: Concerns and
Directions for Future 245
8 Data Analysis (A) 248
9 Data Analysis (B) : Hypothesis Testing 302
10 Findings and Conclusions 371
11 Suggestions and Recommendations 380
Bibliography 385
Annexure 405
9
LIST OF TABLES
Number Description Page No.
3.1 Total Sample Size 74
3.2 Different Items in the Questionnaire 76
3.3 Different Items in the Interview Schedule 77
4.1 Total number of universities, colleges and enrollment
from 1947- 2011 103
4.2 Snapshot of different Regulatory bodies of Higher
Education in India 129
5.1 Total Public Expenditure on Higher Education 141
5.2 Number of Researchers per Million People 152
5.3 Percentage of expenditure of GDP on Research 153
5.4 Number of Researchers in India 155
6.1 Presence of Higher Educational Institutions in India 174
6.2 Percentage of Enrollment in Higher Educational
Institutions in India 175
6.3 Growth of Private Self financing Institutions as a
percentage of Total number of institutions 179
6.4
Growth in enrollment in private self financing
institutions as a percentage of total number of
institutions
180
8.1 Cronbach’s Alpha (Validation of the Questionnaire) 249
8.2 Names of Cities, Frequency, percentage and
organization culture score based on city 249
8.3 Names of States and Frequency, based on Organization
Culture 250
8.4 Age Groups, Frequency and percentage and
Organization Culture score based on age groups 251
8.5 Gender, Frequency and percentage and Organization
Culture score based on gender 251
8.6 Qualification, Frequency and percentage and
Organization Culture score based on Qualification 252
8.7 Designation, Frequency and percentage and
Organization Culture score based on Designation 253
8.8
Total Experience as a faculty, Frequency and
percentage and Organization Culture score based on
Qualification
253
8.9
Experience in the present Organization, Frequency and
percentage and Organization Culture score based on
Qualification
254
10
8.10
Industry Experience, Frequency and percentage and
Organization Culture score based on Industry
Experience
255
8.11 Names of Cities, Frequency, percentage and
organization performance score based on city 256
8.12 Names of States, Frequency, percentage and
organizational performance score based on state 257
8.13 Gender, Frequency, percentage and organizational
performance score based on gender 257
8.14
Year of Study, Frequency, percentage and
organizational performance score based on year of
study
258
8.15
With whom you Stay, Frequency, percentage and
organizational performance score based on with whom
you stay
259
8.16
Parents’ Qualification, Frequency, percentage and
organizational performance score based on parents’
qualification
260
8.17
Family Income, Frequency, percentage and
organizational performance score based on family
income
261
8.18 Names of Cities, Frequency, percentage and Social
Acceptability score based on city 262
8.19 Names of States, Frequency, percentage and Social
Acceptability score based on states 262
8.20 Age groups, Frequency, percentage and Social
Acceptability score based on age groups 263
8.21 Gender, Frequency, percentage and Social
Acceptability score based on gender 264
8.22 Table no: 5A.21: Qualification, Frequency, percentage
and Social Acceptability score based on qualification 264
8.23 Monthly Income, Frequency, percentage and Social
Acceptability score based on Monthly Income 265
8.24 Occupation, Frequency, percentage and Social
Acceptability score based on Occupation 266
8.25 Attitude towards students as a factor of Organization
Culture 268
8.26 Descriptive Statistics of Attitude towards students as a
factor of Organization Culture 269
8.27 Teaching Skill as a factor of Organization Culture 269
8.28 Descriptive Statistics of Teaching Skill as a factor of
Organization Culture 270
8.29 Campus Placement Facility as a factor of
Organization Culture 271
8.30 Descriptive Statistics of Campus placement facility as
a factor of Organization Culture 271
11
8.31 Faculty Morale as a factor of Organization Culture 272
8.32 Descriptive Statistics of Faculty Morale as a factor of
Organization Culture 273
8.33 Organizational Glue as a factor of Organization
Culture 273
8.34 Descriptive Statistics of Organizational Glue as a
factor of Organization Culture 274
8.35 Leadership Practices as a factor of Organization
Culture 275
8.36 Descriptive Statistics of Leadership Practices as a
factor of Organization Culture 276
8.37 Professional Satisfaction as a factor of Organization
Culture 276
8.38 Descriptive Statistics of Professional Satisfaction as a
factor of Organization Culture 277
8.39 Mean Scores of factors of Organization Culture at a
glance 277
8.40 Mean Scores of Organization Culture for all
respondents 278
8.41 Infrastructure as a factor of Organizational
Performance 280
8.42 Descriptive Statistics of Infrastructure as a factor of
Organizational Performance 281
8.43 Library Facility as a factor of Organizational
Performance 281
8.44 Descriptive Statistics of Library Facility as a factor of
Organizational Performance 282
8.45 Canteen/Catering Facility as a factor of Organizational
Performance 282
8.46 Descriptive Statistics of Canteen/Catering Facility as
a factor of Organizational Performance 283
8.47 Level of Good Will as a factor of Organizational
Performance 284
8.48 Descriptive Statistics of Level of Good Will as a factor
of Organizational Performance 284
8.49 Placement Facility as a factor of Organizational
Performance 285
8.50 Descriptive Statistics of Placement Facility as a factor
of Organizational Performance 286
8.51 Institutional Strength as a factor of Organizational
Performance 287
8.52 Descriptive Statistics of Institutional Strength as a
factor of Organizational Performance 287
8.53 Mean Scores of factors of Organizational performance
at a glance 288
8.54 Mean Scores of factors of Organizational
performance for all respondents at a glance 289
8.55 Awareness as a factor of Social Acceptability 290
12
8.56 Descriptive Statistics of Awareness as a factor of Social
Acceptability 291
8.57 Level of Awareness as a factor of Social Acceptability 291
8.58 Trust and confidence as a factor of Social Acceptability 292
8.59 Descriptive Statistics of Trust and confidence as a
factor of Social Acceptability 293
8.60 Level of Trust and confidence as a factor of Social
Acceptability 293
8.61 Value for money as a factor of Social Acceptability 294
8.62 Descriptive Statistics of value for money as a factor of
Social Acceptability 295
8.63 Level of value for money as a factor of Social
Acceptability 295
8.64 Quality of service as a factor of Social Acceptability 296
8.65 Descriptive Statistics of quality of service as a factor of
Social Acceptability 297
8.66 Willingness to cooperate as a factor of Social
Acceptability 297
8.67 Descriptive Statistics of Willingness to cooperate as a
factor of Social Acceptability 298
8.68 Level of Willingness to cooperate as a factor of Social
Acceptability 299
8.69 Over all Score of Social Acceptability at glance 299
8.70 OverallScore of Social Acceptability for all
respondents at glance 300
9.1 Level of Organizational Culture 301
9.2 Bivariate frequency on Level of Organizational culture 302
9.3 ANOVA for Organizational Culture between cities 304
9.4 Descriptive statistics of Organizational Culture
between cities 305
9.5 T-test of Organizational Culture between cities 306
9.6 Descriptive statistics of Organizational Culture
between states 306
9.7 T-Test of Organizational Culture between states 307
9.8 Level of Organizational Performance between states 308
9.9 Bivariate Table of Level of Organisation performance 309
9.10 ANOVA of Organizational Performance according to
Cities 311
9.11 Descriptive Statistics of Organizational Performance
according to Cities 312
13
9.12 T-test of Organizational Performance between Cities 313
9.13 Descriptive Statistics of Organizational Performance
between States 314
9.14 T-test of Organizational Performance between States 314
9.15 Level of Social Acceptability 315
9.16 Bivariate Frequency table on Level of Social
Acceptability 317
9.17 ANOVA for Level of Social Acceptability cities 318
9.18 Descriptive Statistics for Level of Social Acceptability
cities 319
9.19 T-test of Social Acceptability between cities 320
9.20 Descriptive statistics of Social Acceptability between
States 321
9.21 T-test of Social Acceptability between states 322
9.22 Organization Culture and Social acceptability scores 322
9.23 Correlations Between Organization Culture and Social
acceptability scores for all cities 324
9.24 Organization performance and Social acceptability
scores 324
9.25 Correlations Between Organizational Culture and
Social acceptability scores for all cities 326
9.26 Level of Organization Culture between cities 327
9.27 Chi-square Test for Level of Organization Culture for
all Cities 328
9.28 Level of Organization Culture for all States 329
9.29 Chi square Test for Organization Culture for all States 330
9.30 Level of Organizational Culture for all Age Groups 331
9.31 Chi-square Test of Organization Culture for all age
groups 332
9.32 Level of Organization Culture for Gender 333
9.33 Chi-square Table of Organization Culture for Gender 334
9.34 Level of Organization Culture for Qualification 335
9.35 Chi-square Table of Organizational Culture for
qualification 336
9.36 Level of Organizational Culture for Designation 337
9.37 Chi-square Table of Organizational Culture for
Designation 338
9.38 Level of Organizational Performance for Cities 339
9.39 Chi-square Table of Organizational Performance for
City 341
14
9.40 Level of Organizational Performance for State 342
9.41 Chi-square Table of Organizational Performance for
State 343
9.42 Level of Organizational Performance for Gender 344
9.43 Chi-square Table of Organization Performance for
Gender 345
9.44 Level of Organizational Performance: Year of Study 346
9.45 Chi-square table of Level of Organizational
Performance: Year of Study 348
9.46 Level of Organizational Performance: With whom you
stay 349
9.47 Chi square Table of Organizational Performance:
With whom you stay 350
9.48 Level of Organizational Performance: Parents’
Qualification 351
9.49 Chi square Table of Organizational Performance:
Parents’ qualification 353
9.50 Level of Organizational performance: Monthly Income 354
9.51 Chi square Table of Organizational Performance:
Monthly Income 355
9.52 Level of Social Acceptability: City 356
9.53 Chi square table for Social Acceptability: City 357
9.54 Level of Social Acceptability: State 358
9.55 Chi square table for Social Acceptability: State 359
9.56 Level of Social Acceptability: Age 360
9.57 Chi square table for Social Acceptability: State 361
9.58 Level of Social Acceptability: Gender 362
9.59 Chi square Table for Social Acceptability: Gender 363
9.60 Level of Social Acceptability: Monthly Income 364
9.61 Chi square Table for Social acceptability: Monthly
Income 366
9.62 Level of Social Acceptability: Occupation 367
9.63 Chi square Table for Social Acceptability: Monthly
Income 368
9.64 Hypothesis Testing Results at a Glance 370
15
LIST OF FIGURES & GRAPHS
Number Description Page No.
4.1 Growth in the number of universities in India from
1971-2012 104
4.2 Growth percentage in the number of colleges from 1971
- 2012 105
4.3 Number of student Enrollment in India from 1971-2012 106
4.4 Number of student enrollment in percentage in India
from 1971-2012 107
4.5 Number of student enrollment in India in comparison
with China and USA 107
6.1 Higher Education Institutions by ownership in 2011-12 174
6.2 Number of student enrollment in various institutions in
India 176
6.3 Growth of Private Self Financing Institutions as a
percentage of total number of Institutions in India 179
6.4
Growth of enrollment inPrivate Self Financing
Institutions as a percentage of total number of
Institutions in India
181
8.1 Mean Scores of factors of Organization Culture of all
respondents at a glance 278
8.2 Mean Scores of factors of Organizational Performance
of all respondents at a glance 288
8.3 Mean Scores of factors of Social Acceptability of all
respondents at a glance 300
9.1 Level of Organizational Culture 302
9.2 Bivariate frequency of Level of Organizational Culture 303
9.3 Score of Organizational Culture acco. to City 305
9.4 Level of Organizational Performance according to states 309
9.5 Respondents according to Level of Organizational
Performance and states 310
9.6 Score of Organizational performance according to
Cities 312
9.7 Level of Social Acceptability 316
9.8 Respondents according to the Level of Social
Acceptability 317
9.9 Score of Social Acceptability according to cities 320
9.10 Organization Culture and Social acceptability scores for
all cities 323
16
9.11 Organization performance and Social acceptability
scores for all cities 325
9.12 Level of Organization Culture for all cities 328
9.13 Level of Organization Culture for States 330
9.14 Level of Organization Culture for all age groups 332
9.15 Level of Organization Culture for gender 334
9.16 Level of Organization Culture for qualification 336
9.17 Level of Organization Culture for Designation 338
9.18 Level of Organizational Performance for Cities 340
9.19 Level of Organizational Performance for States 342
9.20 Level of Organizational Performance for Gender 345
9.21 Level of Organization Performance for Gender 347
9.22 Level of Organization Performance for With whom you
stay 350
9.23 Level of Organization Performance for Parents’
Qualification 352
9.24 Level of Organization Performance for Monthly Income 355
9.25 Level of Social Acceptability: City 357
9.26 Level of Social Acceptability: State 359
9.27 Level of Social Acceptability: State 361
9.28 Level of Social Acceptability: Gender 363
9.29 Level of Social Acceptability: Monthly Income 365
9.30 Level of Social Acceptability: Occupation 368
17
LIST OF ABBREVIATIONS
OC Organizational Culture
OP Organizational Performance
SA Social Acceptability
HEI Higher Educational Institutes
ISCED International Standard Classification of Education Department
CABE Central Advisory Board of Education
GER Gross Enrollment Rate
CAGR Cumulative Annual Growth Rate
NME-ICT National Mission on Education through Information and
Communication Technology
TEQUIP Technical Education Quality Improvement Programme
BSR Basic Scientific Research
ICAR Indian Council for Agricultural Research
NCTE National Council for Technical Education
OCEDC Organization for Economic Development and Cooperation
NSS National Sample Survey
WCHE World Council for Higher Education
NIEPA National Institute for Planning and Administration
NSDC National Skill Development Corporation
18
EXECUTIVE SUMMARY
Higher education has captured greater attention of the researchers in the present era
due to the multiplicity of changes and advancement in its nature focus and delivery.
Taking cue from the corporate sector, educational researchers began to focus on
understanding the structure, and strength of the educational institutions in view of
the obvious link between organization culture and its performance. (Smart and St
John 1996). The educational environment is very drastically influenced by
government and higher education policy, the university structures, economic
restructuring, internationalism, lifelong learning, rapidly growing technologies, the
shift from teaching to learning and globalization. Educational institutions have to
respond to these changes in the environment and if necessary have to be willing to
redesign its forms and practices.
Higher education refers to a level of education that is provided at academies,
universities, colleges, seminaries, institutes of technology and certain other
collegiate-level institutions, such as vocational schools, trade schools, and career
colleges, that award academic degrees or professional certifications. It is the
education level beyond secondary or high school level in India. Higher education
generally means university level education. It includes undergraduate and
postgraduate education. Higher education consists of a vigorous and thorough
programme of study which is aimed at giving the student a universal outlook.
The higher education system in India has grown in a remarkable way, particularly in
the post-independence period, to become one of the largest systems of its kind in the
world. However, the system has many issues of concern at present, like financing
and management including access, equity and relevance, reorientation of
19
programmes by laying emphasis on health consciousness, values and ethics and
quality of higher education together with the assessment of institutions and their
accreditation. (Higher Education in India, Issues, concerns and New Directions,
Report by UGC, New Delhi, 2003)
Statistics from UNESCO and the University Grants Commission show that India’s
public expenditure on all levels of education, as a percentage of both government
spending (12.73% in 2005/06) and gross domestic product (3.46% in 2005/06), is
not out of line with expenditures in developed countries. For example, in 2005 the
comparable figures for the United States were 13.7% and 5.3%. For Japan, they
were 9.2% and 3.5%.
Privatization of education is not a new phenomenon in the world economy. In many
countries of the world, the private sector has come to play either a limited role or a
predominant role in higher education. Privatization has assumed greater significance
as a policy strategy of the development of education in recent times, essentially, but
not wholly, due to stagnating- and in some countries declining public budgets for
education, on the one hand, and on the other, increasing social demand for higher
education, manifested in slogans like, ‘higher education for all’(Roderick and
Stephens, 1979). Private education has grown for several reasons, which can be
summed up in two categories: excess demand and differentiated demand for higher
education. (James, 1987).
Privatization of higher education is apparently a fledgling but welcome trend:
Higher education requires it to maintain creativity, adaptability and quality. The
economic trail of liberalization and globalization demands it. Considering the
chronic paucity of resources, gradually unburdening itself of the additional
responsibility for higher education may be advisable for the government. Instead, it
20
could better utilize the scarce resources for realizing the goal of universalization of
elementary education and for improving the quality of school education.
India has decided that financing for expanding enrollments and improving the
quality of higher education will come from students and their families, in the form
of tuition and other fees. While government-aided colleges, built and managed by
charitable societies, have a long and distinguished history in Indian higher
education, the government cannot afford to support virtually free education at more
such institutions with massive subsidies. Consequently, a large number of colleges
and deemed universities have been opened in the past decade to be run either as not-
for-profit or commercial operations by investors seeking a decent rate of return on
their investments.
Over last two decades, a rapidly growing Indian economy has led to a huge demand
for an educated and skilled labour force. To meet the manpower needs of dynamic
economy, not surprisingly, private enterprises have cropped up to complement
public educational institutions, plagued as they are by capacity constraints. Private
self financing institutions got a fillip start in mid 1980s coinciding with reducing
investment by Govt. of India and the states. In 2001 when private self financing
institutions made up to 42.6% of all higher education institutes, 32.8% of Indian
students studied there. In 2006 the share of private students went up to 63.2% and
their student share went up to 51.5 %.
The existing phenomenon is such that the presence of private self educational
institutions is widely increasing in the country and the students who enroll in these
institutions also are on the growing trend. At the same time it seems that there is a
disregard for such institutions in the minds of the general public. They are treated as
profit making institutions in spite of the enormous services they provide to the
21
society. There are states in India where at the beginning of the academic year the
various matters related to admissions to private self financing education institutions
become really complicated affair. The present study would be an attempt to find out
the impact of organization culture and performance on social acceptability of private
self financing education institutions w.r.t. engineering colleges in selected cities of
Karnataka.
The concept of organization culture emerged in the early 1980s as the topic of major
concern of the administrators and researchers of higher education (Deal and
Kennedy, 1982; Dill 1982). Organization Culture is so important to the
organization that, in the long run, it may be the one decisive influence for the
survival or fall of the organization”. From organizational values develop
organizational norms, guidelines, or expectations that prescribe appropriate kinds of
behavior by employees in particular situations and control the behavior of
organizational members towards one another. Azhar K (2003): Organizational
culture is the set of important assumptions-often unstated-that members of an
organization share in common. Beliefs are assumptions about reality and are derived
and reinforced by experience. Values are assumptions about ideals that are desirable
and worth striving for. When beliefs and values are shared in an organization, they
create a corporate culture. Schein (2004) reaffirms that the culture of the
organization is understood in terms of key elements such as how the organization is
led, the strategy adopted for change implementation, discipline in the
organization and how systems, processes and people are integrated, which all
describe how things are done in the organization.
It explores the competing demands within organization between their internal and
external environments on the one hand and between control and flexibility on the
22
other. Organizations with an internal focus emphasize integration, information
management and communication management whereas organizations with an
external focus emphasis growth, resources acquisition and interaction with the
external environment. According toHansen and Waterman (1989) Organization
Culture can influence how people set personal and professional goals, perform tasks
and administer resources to achieve them. For William J. Tierney (1988) researchers
and practitioners alike often view culture as a new management approach that will
not only cure a variety of organizational ills but will serve to explain virtually every
event that occurs within an organization.
Improving the productivity of an institution is essential to its survival in the
competitive world. The purpose of all productivity related endeavors is to bring
about lasting improvements in the performance of an education institution (Shrestha,
2005). Smart and Hamm (2003)state that, measuring Organization Performance in
education is very important. They further observe that, if an academic institution
wants to deliver quality graduates through the coursework they offer, then they
should know how to do this accurately. If there is anything that an education
institution should do, it should be the evaluation of its performance. This is very
important, especially in the case of colleges and universities. This is because the
quality of education being offered by these institutions is of vital importance
because it is this quality that is instilled in the individuals that they produce in the
corporate world in due time. Measuring performance in education is then an
essential, and any person employed in the education industry would certainly attest
to that fact. Muya James Ng’ang’a andWesonga Justus Nyongesa (2012)affirms
thatorganizational performance is something for which all education institutions
strive for, regardless of their size. Small institutions want to get big, big institutions
23
want to get bigger. Indeed, institutions have to grow at least a bit every year in order
to accommodate the increased education needs that emerge over time.
Performance Based Management Special Interest Group (PBM SIG) defines OP as
the ongoing monitoring and reporting of a programme accomplishment, particularly
progress towards pre-established goals. Performance measures may address the type
or level of programme activities conducted (process), the direct products and
services developed by a programme (output), and/or the results of those products
and services (outcomes). Performance measures quantitatively tell us something
important about our product, services and the processes that produce them. They are
a tool to help us understand, manage, and improve what our organizations do.
Effective performance can let us know: a) How well we are doing b) If we are
meeting our goals c) If our customers are satisfied d) If our processes are in
statistical control and e) If and where improvements are necessary
Brunson (1996) proposes following definition to Social Acceptability; ‘a condition
that results from a judgmental process by which individuals (1) incorporate the
perceived reality with its known alternatives; and (2) decide whether the real
condition is superior or sufficiently similar to the most favorable alternate
condition’. The adjective ‘social’ implies that what matters is some aggregation of
individual judgments. Such aggregated measures can range from an informal
consensus among participants at a public meeting to formal codified expressions.
The Term Social Acceptability is used synonymously with service user’s
satisfaction, with care received, where experiential views are assessed quantitatively.
People can express satisfaction when they have experience of the service by an
auxiliary. However the views of people who have not experienced the service are
equally important if their use is to be expanded. Quality assurance requires a
24
service’s social acceptability or legitimacy be considered as a key part of service
quality assessment. The inclusion of varieties in the sampling methods like age,
social and cultural backgrounds ensures the influence of various perspectives.
Bernette (1993)affirms that SA is in fact constrained by previous learning,
standardized responses and conventional values. Values are viewed as a limited set
of evaluative standards for means and ends of action. They are high order
determinants of preferences and actions. For Straughan (1993): each individual will
have a rank ordering of value orientations, of which he or she is at least partially
aware. As a result of this ordering of value orientations an individual would be
willing to accept tradeoffs. The nature of these tradeoffs is not readily apparent even
knowing an individual’s ranking of values.
The intensive review of literature reveals that there have been thorough studies on
Organization Culture, Organization Performance and Social Acceptability. Although
most of the Social Acceptability studies are found in the field of ecological studies it
is seen that there is no dearth for Organization Culture and Organization
Performance related studies on higher education. The intention of the researcher
would be to find out how far the Organization Culture and Organization
Performance affect social acceptability of private self financing higher educational
Institutions specifically engineering colleges in selected cities of Kerala and
Karnataka.
In the year 2001 Govt. of Kerala allowed the private sector to start education
institutions in the Higher Education Sector in the State of Kerala. The then Chief
Minister A. K. Antony's famous statement: 'two self financing Colleges for one
Govt. College' was explaining the role of private self financing colleges in the state
25
with 50 per cent of admissions to the management and 50 percent to the State Govt.
With this understanding the private sector predominantly the minority communities
and private parties entered into the field of Higher Education. But later a verdict by
the Kerala High Court in line with the Supreme Court verdict vide W.P. (C)
No.17873/2006 etc. - 23 - in favour of the minority rights, distorted the whole
scenario, as and when the minority communities withdrew for their constitutional
rights from whatever they had pledged till then.
From then the discussions on Self Financing Education System till today is a matter
of great contention in the State of Kerala. Therefore the Study would intend to look
at measuring the Social Acceptability of Private Self Financing Educational
Institutions with reference to Engineering Colleges and to see how far the factors of
organization culture and organizational performance create an impact on social
acceptability.
This study attempts to understand the effect of organization culture and performance
on social acceptability of private self financing educational institutions, with special
reference to engineering colleges in selected cities of Kerala and Karnataka. Based
on the review of literature, the following research questions were developed to guide
the study.
1. What is the relationship between organization culture and social acceptability of
Private Self Financing Engineering Colleges in Kerala and Karnataka?
2. Does it imply to say that if organization culture is positive social acceptability
will be higher and vice versa?
26
3. What is the relationship between organization performance and social
acceptability of Private Self Financing Engineering Colleges in Kerala and
Karnataka?
4. Does it imply to say that if organization performance is high social acceptability
will be higher and vice versa?
5. How do the organization culture and organization performance affect social
acceptability of Private Self Financing Engineering Colleges in Kerala and
Karnataka?
6. Does it imply to say that if organization culture is positive and organization
performance is high social acceptability will be higher and vice versa?
7. What is the assessment level of these variables at different demographic factors
and location in Selected Cities in Kerala and Karnataka?
Based on the Research Questions the following Objectives have been formulated.
1. To study organizational culture of Private Self Financing EngineeringColleges in
Kerala and Karnataka
2. To study organizational performance of Private Self Financing Engineering
Colleges in Kerala and Karnataka
3. To study social Acceptability of Private Self Financing Engineering Colleges in
Kerala and Karnataka
4. To study the impact of organizational culture on social acceptability of Private
Self Financing Engineering Colleges in Kerala and Karnataka
5. To study the impact of organizational performance on social acceptability of
Private Self Financing Engineering Colleges in Kerala and Karnataka
27
6. To study the association of Organizational Culture, Organizational Performance
and Social Acceptability with demographic factors (gender, family income& state
of origin) of Private Self Financing Engineering Colleges in Kerala and
Karnataka
The present study is a descriptive study. In this study there are two independent
variables: 1. Organizational Culture and 2. OrganizationalPerformance, Social
Acceptability will be the dependent variable in the study. TheSecondary Data are
collected from various available sources through desk research including literature
survey and referring e-libraries etc. Review of literature and other available
information from various published and unpublished reports. Journals, books,
newspapers etc (including databases like Ebsco, Pro-quest, India Business Insight
Databases and other)
Data collection is done in two stages: in the first stage a pilot surveywas conducted
to ascertain the research parameters and to test the validity and reliability of the
instruments used in the study. In the second stage the primary data was collected
using the instruments in the study. Instruments used included 1.Questionnaires 2.
Interview Schedules and 3. Direct Personal Interviews.
The study was conducted in two states of South India, Karnataka and Kerala. The
sampling was based on stratified Random Sampling. The sample units are Students,
Faculties and Institution Heads of Private Self Financing Engineering Colleges in
Selected cities of Karnataka (Bangalore and Mysore) and Kerala (Trivandrum and
Kochi). Survey also was conducted among the general public who reside in the 4
major cities of selected two states in the study.
28
The data collected with help of the questionnaire was analyzed with the help of the
statistical package SPSS 20. The mean scores arrived would be put to various
statistical analysis using various statistical tools in order to test the research
hypothesis.
The present study is found to have the following limitations
1. The study was carried out with assumptions regarding time, study area and
sample size etc. 2. The study should have also taken the responses from the
corporate on the performance and acceptability of educational institutions. 3.
Collecting the information from colleges especially from faculties and students was
one of the difficult tasks faced by the researcher. 4. The data collected with the
permission of the management could have affected the veracity of the data collected.
5. The restriction of the research only to major cities is another major limitation of
the study. 6. The different levels of experience of the general public who, have
provided data for the social acceptability, with the self financing education systems
might influence the responses.
The following were the findings of the study.
1. The study tries to measure the impact of Organizational Culture and
organizational performance on social acceptability of private self financing
engineering colleges in Karnataka and Kerala. From the analysis of primary data
with respect to Organizational Culture, Karnataka shows a better mean score over
Kerala. On scores of organizational culture of different cities show that in Mysore
organizational culture seems to be very high and that of Kochi very low.
29
2. With respect to Organizational Performance the scores of Karnataka shows a
greater score than that of Kerala with respect to private self financing engineering
colleges. The scores of Organizational Performance of different cities also show that
the performance of private self financing engineering colleges of Bangalore seems
to be high and that of Trivandrum which is the lowest
3. The mean score of organization culture, Organizational performance and social
acceptability have no significant difference between males and females.
4. There is no significant difference in mean scores of organization performance of
cities of same state. But there is significant difference in mean scores of organization
performance of cities of different states.
5. There is no significant difference in mean scores of social acceptability of cities
of same state but there is significant difference in mean scores of social acceptability
of cities of different states.
6. There is high level of positive correlation between Organizational Culture and
Social Acceptability and it also found that there is high level of positive correlation
between Organizational Culture and Social Acceptability
7. It is seen that there is positive correlation between organizational culture and
organizational performance. Whereas even if the scores of organization culture and
organizational performance show a better average, social acceptability seems to be
very low. It very clearly tells that the social acceptability in Kerala in comparison
with Karnataka towards the self financing engineering institutions is very low.
8. The General mean score of Kerala and Karnataka taken as an aggregate seems to
be very low because of the effect of the scores in Kochi and Trivandrum. The scores
of Bangalore and Mysore seem to be on a better scale.
30
9. The analysis between cities it is found that even if organization culture is positive
and organizational performance is high social acceptability is low in general. But the
specific thing to be mentioned is on the scores of cities in Kerala. The scores of
Organization Culture and Organization performance is Kerala seems to be similar
but the social acceptability seems to be very low.
10. The scores of organizational culture and organizational performance show a
grater average than social acceptability. At the same time it is found that there is a
general level of satisfaction with organizational culture and organizational
performance. Notable thing here is that the acceptability score of Kerala seems to be
very low with Karnataka, whereas the scores on organizational culture and
organizational performance are on a higher level.
The present study would bring greater nuances in the study of Self Financing
Education System in South India, by understanding the relationship of
Organizational Culture and Organizational Performance on Social Acceptability. It
will help us to develop a thematic model of the level of organization culture,
organization performance and social acceptability on Private Self Financing Higher
Educational institutions with reference to Engineering Colleges in Selected Cities of
Kerala and Karnataka. In additions to those cited (1) It will help the researcher to
identify effect of organization culture and performance on social acceptability of
Private Self Financing Higher Educational institutions with reference to Engineering
Colleges in Selected Cities of Kerala and Karnataka (2). The study will also reveal
the level of social acceptability towards Private Self Financing Higher Educational
institutions with reference to Engineering Colleges in Selected Cities of Kerala and
Karnataka without any reference to their organization culture and performance.(3). It
will guide the management of Private Self Financing Higher Educational institutions
31
with reference to Engineering Colleges, in their decision making to maintain or
improve upon their organization culture and organization performance and thus to
gain better social acceptability.
The present study is expected to open up avenues for further research on factors
other than organization culture and organization performance which affect social
acceptability of Private Self Financing Higher Educational institutions with
reference to Engineering Colleges in South India. The study could lead to further
research on the political, technological and economical aspects that might play a role
in the social acceptability of the Private Self Financing Higher Educational
institutions with reference to Engineering Colleges in South India. The study has
analyzed the factors of organization culture and organization performance and social
acceptability of Engineering Colleges. It would also open room, to expand the study
to other branches of Higher education system whether in private or public sector.
In India Privatization in the field of education is a reality today. There is greater
presence of the private self financing institutions in India which conduct various
innovative and useful programmes. The present study has explained that the
organization culture and organizational performance of these institutes is fairly high
in Karnataka and Kerala though it is true that Kerala stands lower to Karnataka. But
as the researcher would look at the social acceptability of the education institutions
it is seen on the average or very low as the results of the two states under study were
concerned. The study would open a new door to look at those factors which are
responsible for the social acceptability of private self financing institutions other
than organization culture and performance.
32
CHAPTER 1
INTRODUCTION
The doctrine of liberal democratic system has emerged as the most suitable and
appropriate form of governance and the 20th century generally redefined the role of
the state to provide education, healthcare, rule of law, and infrastructure
development to enable every citizen to fulfill their potential, irrespective of their
social position. In the present knowledge economy, it could be an indubitable fact
that quality education is mandatory to fulfilling one’s potential and would be the key
for vertical mobility and economic growth, and an educated population is the
prerequisite for economic prosperity of any nation. The main function of a higher
education system is to add real value to human resources, and produce wealth
creators and leaders in all fields – business, professions, politics, administration, and
creative pursuits.
Globalization is described as, flow of technology, economy, knowledge, people,
values and ideas across borders as, it affects each country in a different way due to a
nation’s individual history, traditions, culture and priorities (Knight and De Wit,
1999). Thus, globalization is a multi- faceted process and can affect countries in
vastly different ways - economically, culturally and politically, but it does not take
an ideological stance or a position as to whether this impact has positive and/or
negative consequences. There are a number of factors which are closely related to
this worldwide flow, which are seen as key elements of globalization. These include
the knowledge society, information and communication technologies, the market
economy, trade liberalization and changes in governance structures. These elements
of globalization have significant impact on the education sector (Knight, 2004).
33
Technology has made it possible for parent companies to operate satellite enterprises
and give directions and instruction from the home base with minimum requirement
for physical presence. This, however, has called for new skills and specialized
knowledge, the absorption of which requires the availability of a well-trained and
highly educated cadre of workers in the host economies (Gibbs, 1989). Gibbs (1989)
has also observed that the demand for such know-how is becoming acute while it
remains a key to improve productivity and competitiveness. As a result, education
and for that matter higher education, have become attractive avenues for investment.
India is no exception to this global phenomenon. As part of globalization, the
economic reform packages were introduced in India in the beginning of 1991. These
reform packages imposed a heavy compression on the public budgets on education
sector, more specifically so on higher education. Following the introduction of
structural adjustment policies, that include macro-economic stabilization and
adjustment, a fiscal squeeze is experienced in all social sector investments in many
developing countries, including in India. This has trickled down to public
expenditure on education in general, and higher education in particular. With
economic reforms, cuts in public budgets for higher education have been very steep
severely impairing the growth of higher education. Paradoxically, under the
reforming economic conditions, integration of the Indian economy with world
economy presupposes efficiency and competitiveness in the domestic front as well
as in the international arena. As the process of globalization is technology-driven,
and knowledge-driven, the very success of economic reform policies critically
depends upon the competence of human capital. But, what is observed is the reverse.
Even within the education sector, relative priority assigned to higher education has
been on the decline. It is to be realized that higher education institutions play an
34
important role in setting the academic standard for primary and secondary education.
They are also responsible for not only providing the specialized human capital in
order to corner the gains from globalization, but also for training inside the country,
provide policy advice, etc.
The higher education system in India has grown in a remarkable way, particularly in
the post-independence period, to become one of the largest systems of its kind in the
world. However, the system has many issues of concern at present, like financing
and management including access, equity and relevance, reorientation of
programmes by laying emphasis on health consciousness, values and ethics and
quality of higher education together with the assessment of institutions and their
accreditation. These issues are important for the country, as it is now engaged in the
use of higher education as a powerful tool to build a knowledge-based information
society of the 21st Century. The following chapters would strive to discuss on the
history of Higher Education in India, issues and challenges of Higher Education in
India, the issues related to privatization and the opportunities that are awaiting on
the globe for Indian Higher Education sector.
1.1 Definition to Higher Education
The definition of higher education would include a hierarchy of institutions and
programmes. Many different kinds of university level institutions such as central
universities, state universities, private universities, IITs, NITs, IIITs, IIMs, IISERs,
occupy the upper end of the higher education spectrum. The various colleges
offering general or specialized education, professional education, provide higher
education to nearly eighty percent of students. Several other post-secondary
institutions such as community colleges and technical training institutions and in a
35
sense the polytechnics and vocational institutions, which are not strictly post-
secondary, could also be considered as higher education.
In general the higher education system has been divided these institutions and
programmes into two broad categories: one for scholarly pursuits and achievements
and the other for work-force requirements. It is now increasingly recognized that
this dichotomy should be erased and shift away from undue emphasis on “manpower
oriented” planning (annual out-turn of graduates, growth rate, Gross Enrollment
Ratio, employability etc) and adopt a more holistic approach to higher education at
every level, not just at the university or college level only. Pandit Jawaharlal Nehru,
in his convocation address to the University of Allahabad in 1947, summed up the
basic objectives of the university and its role in national life: quote “A university
stands for humanism, for tolerance, for reason, for the adventure of ideas and for
the search of truth. It stands for the onward march of the human race towards even
higher objectives. If the universities discharge their duties adequately, then it is well
with the nation and the people.”unquote.
Higher Education as defined by various dictionaries is in the following words:
Higher, post-secondary, tertiary or third level education is the stage of learning that
occurs at universities, academies, colleges, seminaries, and institutes. Higher
Education also includes certain college college-level institutions, such as vocational
schools, trade schools, and career colleges, that award academic
degrees or professional certifications (Wikipedia, the free encyclopedia)
Education at a university or at a college of a similar level. Education at colleges that
train people or particular jobs is further education (Macmillan Dictionary).
Education at universities or similar educational establishments, especially to degree
level is the definition given by Oxford Dictionaries.
36
Higher Education could be defined as education at a college or University where
subjects are studied at an advancedlevel (The Cambridge Advanced Learner's
Dictionary & Thesaurus).
The ability of a society to produce, select, adapt, commercialize, and use knowledge
is critical for sustained economic growth and improved living standards. Knowledge
has become the most important factor in economic development, (World
Development Report, 1998-99).
Through higher education, knowledge is acquired and individual perspectives are
sharpened. Higher education refers to a level of education that is provided at
academies, universities, colleges, seminaries, institutes of technology and certain
other collegiate-level institutions, such as vocational schools, trade schools, and
career colleges, that award academic degrees or professional certifications. It is the
education level beyond secondary or high school level in India. Higher education
generally means university level education. It includes undergraduate and
postgraduate education. Higher education consists of a vigorous and thorough
programme of study which is aimed at giving the student a universal outlook. It is
aimed at broadening the student‘s worldview to free the individual from
ethnocentrism. It is known as university education because it focuses on universal or
a wider form of education that is not parochial.
In Australia, the term 'higher education' generally refers to education at degree level
and above. In the Australian Qualifications Framework, higher education courses are
those leading to the award of: Associate degree, Bachelor's degree, Graduate
certificate, Graduate diploma, Master's degree, Doctoral degree. Some courses
37
leading to the award of a diploma or advanced diploma may also be accredited as
higher education.
While in Scotland Higher Education Sector refers to the sector of education which
encompasses post-school courses at Higher National Certificate and Diploma levels
and degree and post-graduate course levels. There are two types of higher education
in the U.K.: higher academic education, and higher vocational education. Higher
education in the United States and Canada specifically refers to post-secondary
institutions that offer Associate's degrees, Bachelor's degrees, Master's degrees,
Education Specialist (Ed.S.) degrees or Doctor of Philosophy (Ph.D.) degrees, or
their equivalents, and also higher professional degrees in areas such as medicine,
dentistry, the law, optometry, etc.
Institutions of higher education include not only colleges and universities but also
professional schools in such fields as law, theology, medicine, business, music, and
art. They also include teacher-training schools, community colleges, and institutes of
technology. Examples of institutions that provide post-secondary education are
vocational schools, community colleges, independent colleges (e.g. Institutes of
Technology, and universities in the United States, the institutes of Technical and
Further Educations in Australia, CEGEPs in Quebec, and the IEKs in Greece. At the
end of a prescribed course of study, a degree, diploma, or certificate is awarded. The
organizations for higher (tertiary, postsecondary) education have a common
purposes and mission for advocacy in numerous areas of both institutional
management and the general public interest. The organizations have specific
purpose for issues from faculty unionization to public policy research and service to
institutions. Most are focused on the organization and governance of higher and
38
tertiary education, but some are involved in service and research at all levels of
education.
As per US Code, Higher Education Amendments of 1998, the term, institution of
higher education means an educational institution in any State that,
(1) admits regular students having a certificate of graduation from a school
providing secondary education, or the recognized equivalent of such a certificate;
(2) is legally authorized within such State to provide a program of education beyond
secondary education;
(3) provides an educational program for which the institution awards a Bachelor‘s
degree or provides not less than a 2-year program that is acceptable for full credit
toward such a degree;
(4) is a public or other nonprofit institution; and
(5) is accredited by a nationally recognized accrediting agency or association, or if
not so accredited, is an institution that has been granted pre accreditation status by
such an agency or association that has been recognized by the Secretary for the
granting of pre accreditation status, and the Secretary has determined that there is
satisfactory assurance that the institution will meet the accreditation standards of
such an agency or association within a reasonable time.
With liberalization of education there is a rapid change in the entire structure. For
instance – Traditionally education was generally classified under the categories of –
primary, secondary, tertiary and adult education. International Standard
Classification of Education department (ISCED) has now segmented tertiary/higher
education under the categories as a) Advanced/theoretical/professional b)
practical/occupational.
39
ISCED has defined Educational programmes on the basis of their educational
content as an array or sequence of educational activities which are organized to
accomplish a pre-determined objective or a specified set of educational tasks.
Empirically, ISCED assumes that there are several criteria that can help allocate
education programmes to levels of education. Depending on the level and type of
education concerned, there is a need to establish a hierarchical ranking system
between main and subsidiary criteria (typical entrance qualification, minimum
entrance requirement, minimum age, staff qualification, etc.).
In the rapidly changing contemporary world, higher education system is undergoing
profound changes in their scope, functions and organization and is in a process of
rapid evolution. Their tasks are no longer confined to the two traditional functions of
teaching and advancement of knowledge. They are assuming new functions with
increasing range, depth and complexity. In broad terms, the functions of the higher
education system in the modern world may be said to be: to seek and cultivate new
knowledge; to interpret old knowledge and beliefs in the light of new needs and
discoveries; to provide the right kind of leadership in all walks of life; to include the
youth from all sections of the society to develop their full potential; to help to
cultivate right interests, attitudes and moral and intellectual values; and to strive to
promote equality and social justice and to reduce social and cultural differences
through diffusion of education. Universities are essentially a community of teachers
and students where, in some way, all learn from one another or, at any rate, strive to
do so. Their principal objective is to deepen our understanding of their role in the
society and to disseminate this understanding throughout society and to apply it in
the service of mankind. Yet another responsibility of the Indian universities in the
40
present context is to strive to assist the schools in their attempts at qualitative self-
improvement.
For this purpose, universities should conduct experimental schools, run advanced
courses for teachers in various school subjects, assume greater responsibility for the
training of teachers at all levels, organize summer institutes for their in-service
education, assist in the search for and development of talent, and develop new
curricula, textbooks and teaching materials. In addition, the need for skill-based
education at the post-secondary level is becoming acute considering the fact that
nearly 50 percent of India’s population consists of persons below 25 years old. It is
recognized that we need programmes that impart knowledge intensive skills as well
as basic vocational skills. It is yet to be resolved as to what proportions of higher
education should these different varieties be made available. This issue also has
financial implications in, as much as the high-end research oriented education for
knowledge generation is many times more expensive than the vocational education
at the other end. With the passage of time India will face much higher demand for
skill based education than for the research based education, neither of which can be
neglected and both have to be accommodated within the constraints of available
resources.
1.2 Academic structure of Higher Education in India
Higher education in India covers all post-secondary education beyond class twelve
in different subject areas including all professional streams such as engineering and
technology, medical, agriculture etc. It comprises three levels of qualifications -
Bachelor’s or undergraduate degree programmes, Master’s or post graduate degree
programmes and the pre-doctoral and doctoral programmes [Master of Philosophy
(M.Phil.) and Doctor of Philosophy (PhD)]. Normally a bachelor’s programme in
41
India requires three years of education after twelve years of school education. In
some places honours and special courses are also available. These are not
necessarily longer in duration but indicate a greater depth of study. The Bachelor’s
degree in professional field of study in agriculture, dentistry, engineering, pharmacy,
technology and veterinary medicine generally takes four years, while for
architecture and medicine, a Bachelor’s degree takes five and five and a half years
respectively. There are other bachelor’s degrees in education, journalism and
librarianship that are treated as second degrees.
A Bachelor’s degree in law can either be taken as an integrated degree programme
lasting five years or a three-year programme as a second degree. The Master’s
degree is normally of two-year duration. It could be based on course work without a
thesis or on research with a thesis. The M. Phil. Degree is a pre-doctoral programme
taken after completion of the master’s degree. This can be either completely research
based or can include course work. A PhD degree is awarded two years after the M.
Phil. degree or three years after the Master’s degree. The students are expected to
write a substantial thesis based on original research for the award of a PhD degree.
Doctor of Letters (D. Litt.)
Doctor of Letters (in Latin:Litterarum doctor) is an academic degree or a Higher
degree which, in some countries, may be considered to be beyond the Ph.D. and
equal to the Doctor of Science. It is awarded in many countries by universities and
learned bodies in recognition of achievement in the humanities, original contribution
to the creative arts or scholarship and other merits. When awarded without an
application by the conferee, it is awarded as an honorary degree.
In the United Kingdom, Australia, India and certain other countries, the degree is
a higher doctorate, above the Doctor of Philosophy (Ph.D.), and is issued on the
42
basis of high achievement in the respective field or a long record of research and
publication. The Litt.D. degree is awarded to candidates whose record of published
work and research shows conspicuous ability and originality and constitutes a
distinguished and sustained achievement. University committee and board approval
is required, and candidates must provide documented mastery of a particular area or
field. The degree may also be awarded honoris cause (Honorary Degree) to such
individuals as the university or the learned body in question deems worthy of this
highest academic award.
43
CHAPTER 2
REVIEW OF LITERATURE
This Chapter summarizes the extensive reviews of literature for the study. The
reviews are centered around three key terms (1). Organizational Culture (2).
Organizational Performance and (3). Social Acceptability.
2.1 Organizational Culture (OC)
Culture has surrounded us and has been the mainstay of the study and practice of
civilizations. It resides in us as individuals and is the hidden force that drives most
of our behavior, both inside and outside. While the layman uses it as a word to
indicate sophistication, in the circles of organizational researchers and managers, it
has been referred to, as a climate and a set of practices which becomes its credo. E.
H. Schein, (2004) explains ‘Culture is a factor that constantly gets enacted and
created with our interactions with the other and is shaped by individual and societal
behavior. Culture therefore is a dynamic phenomenon. The culture of a group can
be defined as a pattern of shared basic assumptions that was learned by a group as it
solved its problems of external adaptation and internal integration, that has worked
well enough to be considered valid and, therefore, to be taught to new members as
the correct way to perceive, think, and feel in relation to those problems’.
2.1.1 Different Levels of Culture: Three levels of culture at the macro level are
identifiable as most important to managing organizations: (1) Societal culture, (2)
industry culture, and (3) organisational culture (Hellriegel, et al., 2004: 360).
The boundaries of these cultures on a macro level are often blurred or fuzzy
(Hellriegel et al., 2004: 360; Sathe, 1983: 6). Due to the non-concrete nature of
44
culture, it is best to view culture in relative terms, such as levels, rather than trying
to describe it directly (Hellriegel, et al., 2004: 360). Knowledge of these levels of
culture will assist management at the selected municipality in fully understanding
the background and development of organisational culture. This will enable
managers to make the correct decisions regarding their organisation’s employees
(Hellriegel et al., 2004: 357).
Even though the emphasis of this research is on the organisational culture level, it is
acknowledged that an organisation’s culture is influenced by the larger societal and
industrial cultures as described below (Hellriegel et al., 2004: 357).
1. Society cultures
The society level is part of the macro culture level. Hofstede (1999: 34) believes that
management is all about people and that people are therefore part of the culture of
the society in which that culture takes place. This cultural level encompasses the
most general level of aggregation, and therefore the most number of people in a
particular country (Hellriegel, et al., 2004: 360).
Managers who work in a society culture that they do not understand are likely to
make poor decisions with regards to how their organisations are staffed, and also
how to motivate those employees (Hellriegel et al., 2004: 361).
Society values have many far-reaching consequences for managing organisations,
because they shape the preferences and behaviours of customers and employees, as
well as the members of the communities in which the organisation operates (Brown,
1995: 45; Hellriegel et al., 2004: 361). Values are a core element in culture and they
are the broad tendencies of people to prefer certain states of affairs to others
(Hofstede, 1999: 35). People’s relationships within a society are affected by those
45
values that form part of the group programming of people's minds in that society,
and therefore, management is subject to cultural values (Hofstede, 1999: 35).
According to Hellriegel et al. (2004: 361) and Brown (1995: 42), experienced
managers realise that cultures often change significantly from north to south or from
the seashore to the landlocked interior within countries. In that sense, organisations
are therefore subject to the same cultural forces that act upon every other aspect of
life in that situation within that national or societal setting (Martin, 2001: 604).
Hellriegel at al. (2004: 361) also state that in many countries, including South
Africa, distinct regional subcultures are present, and therefore members of a society
do not share the same attitudes, values and norms. South Africa has a number of
subcultures (Hellriegel et al., 2004: 361).
These ethnic subcultures are often based on language, race and religion, yet
subcultures can be identified geographically, or according to South Africa’s eleven
official languages that are spoken (Hellriegel et al., 2004: 361).
2. Industry (local government) cultures
Industry cultures, such as the public service sector at the local government level,
represent groups of organizations that share common values, assumptions,
socialisation and norms; and includes all those organizations to which individual
organizations have direct or indirect commitments or links (Bosch, Tait andVenter,
2006: 80; Hellriegel et al., 2004: 360). Deal and Kennedy (1982: 13) and Brown
(1995: 45) state that the industrial environment is the most influential factor in
shaping an organisational culture. Brown (1995: 191) suggests that particular
industry sectors have their own cultures and therefore organisations have to look at
their individual industry culture in order to successfully establish their strategy
formulation and enhance their organisational effectiveness. Identifying the
46
boundaries that exist between industry cultures can be as difficult as locating the
boundaries between subcultures, yet when employees shift between industries, they
can usually sense the cultural differences (Hellriegel et al., 2004: 361). All
municipalities work within the same public service sector at the local government
level and therefore may have some similarities in their cultures due to the difficulty
in locating the boundaries between the local government sectors and the municipal
cultures.
3. Organizational Culture
Organisational culture is a result of many factors, some of which are the type of
business the organisation is in, its products, it customers, its size and location and its
methods of operating (Rowe et al., 1994). Figure 2.1 shows that organizational
cultures are influenced by the macro cultures of societies and industries (Hellriegel
et al., 2004: 363).
Organisational culture can be viewed as the unique pattern of shared assumptions,
values, norms, attitudes, symbols, beliefs, rituals, socialisation, and expectations of
the people in the organisation (Hellriegel et al., 2004: 357;O’Reilly et al., 1991: 491;
Rowe et al., 1994: 472; Schein, 1992: 12). According to the definition by Hellriegel
et al. (2004: 357), the base of culture is formed by shared assumptions, values and
norms, and these cannot be observed. The more visible and observable elements,
such as its socialisation activities, symbols, language, practices and narratives, are
the only way in which culture can be inferred (Hellriegel et al., 2004: 357).
One way of describing organizational culture is by comparing it to personality,
because, like personality, culture affects how people behave when they are not being
told what to do (Hellriegel et al., 2004: 357). Harrison and Stokes (1992:13) agree
47
with Hellriegel et al. (2004: 357) and they explain that culture is to an organisation,
what personality is to an individual. The next section will discuss the shared
assumptions, shared values, shared attitudes and norms of organizational culture.
The organizational culture literature addresses culture as a comprehensive, multi-
dimensional subject. The persistent definitions reflect culture as both deep and
extensive, and as impacting on a wide range of organizational activities.
Organizational culture is known for nurturing self-sustaining forces that tend to
preserve past successful behaviours and sources of power, not recognizing the need
to adapt to changes in the environment or strategy (Deal & Kennedy, 1982). Culture
is often understood to comprise shared basic assumptions, customs, myths and
ceremonies that communicate underlying beliefs, and is evidenced by values
reflected in individual and group behaviours (Reigle 2001). In addition, visible
symbols of culture represent integration into the organization. For example,
standards of dress, membership of professional organizations, and expectations
regarding working hours and workplace behaviour all communicate an
organisation’s culture and its expectations regarding behaviour.
Ouchi and Wilkins (1985: 462) note that ‘the contemporary student of
organizational culture often takes the organization not as a natural solution to deep
and universal forces but rather as a rational instrument designed by top management
to shape the behavior of the employees in purposive ways’. Accordingly, much
research on corporate culture and organizational symbolism is dominated by a
preoccupation with a limited set of meanings, symbols, values, and ideas presumed
to be manageable and directly related to effectiveness and performance.
Kilmann (1985: 354) recognizes that there is considerable disagreement about what
culture is but concludes that ‘it is still important to consider what makes a culture
48
good or bad, adaptive or dysfunctional’. He describes culture almost as a physical
force: ‘Culture provides meaning, direction, and mobilization – it is the social
energy that moves the corporation into allocation … the energy that flows from
shared commitments among group members’ (p. 352)
E. H. Schein. (2003) reassures culture as a set of basic assumptions defines for us
what to pay attention to, what things mean, how to react emotionally to what is
going on, and what actions to take in various kinds of situations. Once we have
developed an integrated set of such assumptions—a ‘thought world’ or ‘mental
map’- we will be maximally comfortable with others who share the same set of
assumptions and very uncomfortable and vulnerable in situations where different
assumptions operate, because either we will not understand what is going on, or,
worse, we will misperceive and misinterpret the actions of others.
Organisation Culture focuses on the values and beliefs of members of organisations.
These values underpin the behaviour and attitudes of individuals within schools and
colleges but they may not always be explicit. These individual beliefs coalesce into
shared values: ‘Shared values, shared beliefs, shared meaning, shared understanding,
and shared sense making are all different ways of describing culture … These
patterns of understanding also provide a basis for making one’s own behaviour
sensible and meaningful’ (Morgan, 1997, p.138). This does not necessarily mean
that individual values are always in harmony with one another. Morgan (1997,
p.137) suggests that ‘there may be different and competing value systems that create
a mosaic of organizational realities rather than a uniform corporate culture’.
Dissonance is more likely in large, multipurpose organisations such as colleges and
universities but Nias et al. (1989) note that they may also exist in primary education.
49
Fullan and Hargreaves (1992, pp.71–2) argue that some schools develop a
‘balkanized’ culture made up of separate and sometimes competing groups:
Teachers in balkanized cultures attach their loyalties and identities to particular
groups of their colleagues. They are usually colleagues with whom they work most
closely, spend most time, socialize most often in the staffroom. The existence of
such groups in a school often reflects andreinforces very different group outlooks on
learning, teaching styles, discipline and curriculum.
Staff working in sub-units, such as departments, may develop their own distinctive
‘subculture’ and middle managers, or ‘middle level leaders’ may wish to cultivate
this as a way of developing and enhancing team effectiveness. However, as Fullan
and Hargreaves (1992) imply, such subcultures may not be consistent with the
whole-school or college culture. 2 Organisational culture emphasises the
development of shared norms and meanings.
The assumption is that interaction between members of the organisation, or its
subgroups, eventually leads to behavioural norms that gradually become cultural
features of the school or college. Nias et al.’s (1989, pp.39–40) research shows how
group norms were established in their case-study schools: As staff talked, worked
and relaxed together, they began to negotiate shared meanings which enabled them
to predict each other’s’ behaviour. Consequently each staff developed its own taken-
for-granted norms. Because shared meanings and ways of behaving became so taken
for granted, existing staff were largely unaware of them. But they were visibleto
newcomers … Researchers moving between schools were constantly reminded of
the uniqueness of each school’s norms. These group norms sometimes allow the
development of a monoculture in a school with meanings shared throughout the
50
staff: ‘the way we do things around here’. We have already noted, however, that
there may be several subcultures based on the professional and personal interests of
different groups. These typically have internal coherence but experience difficulty in
relationships with other groups whose behavioural norms are different. Wallace and
Hall (1994, pp.28 and 127) identify senior management teams (SMTs) as one
example of group culture with clear internal norms but often weak connections to
othergroups and individuals:
3 Culture is typically expressed through rituals and ceremonies which are used to
support and celebrate beliefs and norms. Schools, in particular, are rich in such
symbols as assemblies, prize-givings and corporate worship. Hoyle (1986, pp.150
and 152) argues that ritual is at the heart of cultural models: ‘Symbols are a key
component of the culture of all schools … [they] have expressive tasks and symbols
which are the only means whereby abstract values can be conveyed … Symbols are
central to the process of constructing meaning’. (Hoyle 1986, pp.150–2).
School culture may be symbolized through three modes:
(a) Conceptually or verbally, for example through use of language and the
expression of organisational aims.
(b) Behaviourally, through rituals, ceremonies, rules, support mechanisms, and
patterns of social interaction.
(c) Visually or materially, through facilities, equipment, memorabilia, mottoes,
crests and uniforms. (Beare et al. 1989, p.176).
Schein (1997, p.248) argues that ‘rites and rituals [are] central to the deciphering as
well as to the communicating of cultural assumptions’.
4 Organisational culture assumes the existence of heroes and heroines who embody
the values and beliefs of the organisation. These honoured members typify the
51
behaviours associated with the culture of the institution. Campbell-Evans (1993, p.
106) stresses that heroes or heroines are those whose achievements match the
culture: ‘Choice and recognition of heroes … occurs within the cultural boundaries
identified through the value filter … The accomplishments of those individuals who
come to be regarded as heroes are compatible with the cultural emphases.’
2.1.2 Organizational culture as shared assumptions
Shared assumptions can be seen as the widely held, inherent, unique, and deeply
rooted views that individuals take for granted and believe to be true, and which
guide their views, feelings and emotions about things and how those things function
(Brown, 1995: 22; Hellriegel et al., 2004: 358; Martin, 2001: 588; Parker and
Bradley, 2000: 127). Shared assumptions typically remain unquestioned, and are
accepted as truth (Schein, 1992: 12). Schein (1992: 12) mentions that an
organisation only has a culture when it has had enough of a history to have
developed this set of shared assumptions. Smith (2003: 249) states that assumptions
have been developed, invented or discovered by employees out of their experience,
and future employees therefore view these assumptions as valid because they appear
to have been successful in the past. These assumptions are seen as important enough
to teach to new members of the organisation when they enter because they define
how employees should perceive, think and feel about problems (Smith, 2003: 249).
2.1.3 Organizational culture as shared values
52
Hofstede (1999: 35) defines cultural values as the broad tendencies of individuals to
prefer certain states of affairs over others, and that these cultural values are about
“what is evil and what is good, dirty and clean, immoral and moral, irrational and
rational”. Hellriegel (et al., 2004: 358) and Deal and Kennedy (1982: 14) identify
values as basic concepts and beliefs about conditions that are very important and
meaningful to employees and are stable over time. Values therefore form the heart
of the organisational culture.
Hostede (1999: 35) adds that cultural values among societies are different, but they
are relatively stable over time within a society. Values that have been stable for a
long time without being contravened may be taken for granted, so much so that
employees are no longer aware of them (Sathe, 1983: 8). Hofstede (1999: 35) and
Hellriegel et al. (2004: 358) also believe that values are a core element in culture.
For example, many organisations are attempting to ensure that all employees value
ethical and socially responsible conduct. Values are closely associated with moral
and ethical codes, and they determine what employees think ought to be done
(Brown, 1995: 21). As the values begin to be taken for granted because they are seen
to work reliably, then social validationmay turn values into a scarcely questioned
belief (Brown, 1995: 22). Nazir (2005: 40) agrees that having values that are both
commonly shared and strongly held are very important within an organisation,
especially to organisations operating in the service sector. This aspect is, therefore,
particularly important to local municipalities operating in the public service sector at
the local government level.
2.1.4 Organizational culture as shared socialization and norms
53
Norms are general rules or patterns of behaviours of groups of members, and
become an element of the organisation’s culture when they are shared throughout an
organisation (Hellriegel et al., 2004: 359; Martin, 2001: 589). An example of norms
within the public sector could include the selected local municipality setting specific
behavioural standards for employees, for instance smiling and making eye contact
when talking to customers (Martin, 2001: 589). Norms can be seen as standard
expectations about what are appropriate attitudes and behaviours within an
organisation. Individuals enter into the organisation and are introduced to the
organisation’s cultural norms and are expected to follow them (Hellriegel et al.,
2004: 359; Martin, 2001: 589; O’Reilly, 1989: 12; Sathe, 1983: 7). This systematic
process in which new members of an organisation are brought into a culture is
known as socialisation (Hellriegel et al., 2004: 359). Socialisation is a very
important aspect of introducing new employees to the culture of the organisation
(Hellriegel et al., 2004: 357; Rowe et al., 1994: 472).
Socialisation at the society level occurs within the family, in schools and religious
organisations, as well as through the media (Hellriegel et al., 2004:359).
Socialisation at the local government level takes place through activities conducted
by local government associations, such as the South African Local Government
Association.
2.1.5 Organizational culture as shared symbols, language, narratives and
practices
A symbol is an object that can be used to represent an underlying meaning, beyond
its intrinsic context (Hellriegel et al., 2004: 359; Greenberg and Baron,2003: 523).
Symbols could be words, objects and gestures that get their meaningfrom socialising
54
(Hofstede, 1994: 1). Organisations often rely on symbols because they are the
simplest and basic observable form of expressing culture (Hellriegel et al., 2004:
359; Greenberg and Baron, 2003: 523). A symbol canbe anything as simple as a
uniform or logo, to open versus closed office door norms, office size and layout
(Hellriegel et al., 2004: 359).
Everyday language that is made use of is not purely a way to communicate, but also
a fundamental determinant of how people understand the world they live in (Brown,
1995: 12). Hellriegel et al, (2004: 359) define language, from a culturalperspective,
as a shared system of vocal sounds, written signs, as well as gestures that are used to
convey special meanings among employees. The idea that words generate
understanding has important implications for the study of organisational culture
(Brown, 1995: 12).
Narratives are drawn from the organisation’s history, and focus on a unified, single
event (Brown, 1995: 13). Individuals tell narratives because they assist ininfluencing
others’ understandings of situations and events, as well as illustrating knowledge
and insight into how their organisation works (Brown, 1995: 13).
Brown (1995: 13) states that narratives are also important indicators of
“culturalvalues and beliefs; formal and informal rules and procedures; the
consequences of deviance from, and compliance with, the rules; and social
categories andstatus, and thus the power structure of an organisation.”
Shared practices allow organisations to show the values and beliefs of the
organisation to the employees, and therefore define the organisation’s culture
through these (Rowe et al., 1994: 472). Shared practices include taboos, and rights
and ceremonies. Taboos are behaviours within an organisation that areforbidden, for
55
example, putting profits ahead of ethical considerations such as the municipal
employees receiving high salaries yet not delivering basic services to the community
(Hellriegel et al., 2004: 360). Rights and ceremonies are elaborate and formal
activities that have been designed to generate strong emotions from employees such
as formal prize-giving functions for employees who have achieved high standards of
service (Hellriegel et al., 2004: 360).
The concept of OC emerged in the early 1980s as the topic of major concern of the
administrators and researchers of higher education (Deal and Kennedy, 1982; Dill
1982). Prosci (2010): claimed that: “an OC is so important to the organization that,
in the long run, it may be the one decisive influence for the survival or fall of the
organization”. He continues on the importance of OC as an essential element of the
organization in business today, ‘The business world is fascinated by culture.
Academics have studied it. Authors have written about it. Great leaders know how
to leverage culture to ensure wildly successful business outcomes. Conversely well-
documented case studies demonstrate how incorrect assumptions about
organizational values can lead to misunderstandings at best and organizational value
system impact the way change happens, failed projects and lost profit at worst. In
the frenzied quest for a silver bullet to understand what culture tells us about the
way business should be conducted, there is little debate that organizational value
systems have a powerful influence.’
Azhar K (2003): Asserts that the phenomenon which often distinguishes good
organization form bad ones could be summed up as ‘corporate culture’. Well
managed organizations apparently have distinctive cultures that are in some way,
responsible for their ability to successfully implement strategies. He observes that
every organization has a culture that exerts powerful influences on the behaviors of
56
the employees and managers. Robbins (1986) defines OC as a relatively uniform
perception held of the organization, it has common characteristics, it is descriptive,
it can distinguish one organization from another and it integrates individuals, groups
and organization systems variables. OC refers to a set of some commonly
experienced stable characteristics of an organization which constitutes the
uniqueness of that organization and differentiates it from others. Black & Richard
(2003): OC has been defined as the specific collection of values and norms that are
shared by people and groups in an organization and that control the way they
interact with each other and with stakeholders outside the organization.
Organizational values are beliefs and ideas about what kind of goals members of an
organization should pursue and ideas about the appropriate kinds or standards of
behavior organizational members should use to achieve these goals. From
organizational values develop organizational norms, guidelines, or expectations that
prescribe appropriate kinds of behavior by employees in particular situations and
control the behavior of organizational members towards one another.
Schein (2002): OC matters because decisions made without awareness of the
operative cultural forces may have unanticipated and undesirable consequences”.
The elements of a culture of the organization could be described as the one key
factor that stands out. The following questions would answer it: “What is important
to our organization? How are decisions made? Who is in charge? How does an
employee relate other employees and groups within our organization? What
behaviors are rewarded and recognized? What is compensation based upon?” Prosci
(2010) asserted: But culture is never a static and uniform phenomenon. ‘The
answers to these questions vary from country to country, from industry to industry,
from organization to organization and from institution to institution. It is critical for
57
all institutional managers to understand the underlying values of their institutions
because these factors directly influence the institutional performance and how much
work will ultimately be required to ensure successful outcomes for the institution’.
Martin and Siehl (1983): Define Organization as shared values, attitudes, beliefs and
customs of the members of the organization. Deshpande et al (19193): Defined OC
as a pattern of shared values and beliefs that help individuals understand
organizational functions and provide the norms for the behavior of the organization.
Azhar K (2003): OC is the set of important assumptions-often unstated-that
members of an organization share in common. There are two major assumptions in
common; beliefs and values. Beliefs are assumptions about reality and are derived
and reinforced by experience. Values are assumptions about ideals that are desirable
and worth striving for. When beliefs and values are shared in an organization, they
create a corporate culture.
Culture is widely understood to be made up of a collection of fundamental values
and belief systems which give meaning to organizations (Pettigrew, 1979; Schein,
1985; Sackmann, 1991; Hatch, 1993) specific managerial activities and practices
(James and Jones, 1974; Glick, 1985; Tierney, 1990; Ryder and Southey, 1990).
Though closely related to culture, organizational climate holds several important
differences. Climate is held to be a summary perception of how an organization
deals with its members and environments, and thus develops specifically from
internal factors primarily under managerial influence (Ostroff and Schmitt, 1993).
Organizational Culture, by contrast, is created from a broad range of internal and
external influences, some of which have been argued to lie beyond managerial
control. Alvesson, (1991)
58
Schein (1990) states that organizational culture consists of two layers of concepts,
namely, visible and invisible characteristics. The visible layer means external
building, clothing, behaviour modes, regulations, stories, myths, language, and rites.
On the other hand, the invisible layer means common values, norms, faith, and
assumptions of business organizational members. Culture has emerged as one of the
crucial and popular concepts in the field of organizational behaviour and human
resource management in the recent past (Nazir, 2005 and Ogbanna et al. 2000).
McCarthy, Minichiello, (2000): The fact that organizations may have a strong or
weak culture affects their ability to perform strategically. Culture affects not only
the way managers behave within organizations but also the decisions they make
about the organization’s relationship with its environment and its strategy. Schein
(2004) The culture of the organization is understood in terms of key elements such
as how the organization is led, the strategy adopted for change implementation,
discipline in the organization and how systems, processes and people are integrated,
which all describe how things are done in the organization.
Schein (2004) defines OC as a pattern of shared basic assumptions that was learned
by a group as it solved its problems of external adaptation and internal integration,
which has worked well enough to be considered valid and, therefore, to be taught to
new members as the correct way they perceive, think, and feel in relation to those
problems. Kwan Paula; Walker Allan (2004): The authors proposed that the culture
of an organization could be reflected in four organizational attributes-strategic
emphasis, organizational bonding, leader style and dominant affective characteristic.
For each of the organizational attributes, four scenarios were constructed to describe
each of the four types of organizational cultures. Geertz (1973): Defines culture by
writing ‘Man is an animal suspended in webs of significance he himself has spun. I
59
take culture to be those webs, and the analysis of it to be therefore not an
experimental science in search of law, but an interpretive one in search of meaning’.
Shein (1985): Argues that culture consists of three dimensions-assumptions, values
and artefacts. Assumptions are widely held, ingrained subconscious views of human
nature and social relationships that are taken for granted. Values represent
preferences for alternative outcomes as well as means of achieving those outcomes.
Artefacts are the more solid or physical representation of culture that includes
rituals, slogans, traditions and myths. Organizational values are seen as being the
clearest manifestation of culture.
Pearce and Robinson (2004): observes that culture is strength but can also be a
weakness. As a strength, culture can facilitate communication, decision making and
control, and create cooperation and commitment. As a weakness, culture may
obstruct the smooth implementation of strategy by creating resistance to change. An
OC could be characterized as weak when many sub cultures exist, few values and
behavioral norms shared and traditional are rare. In such an organization, employees
do not have a sense of commitment, loyalty, and a sense of identity. Rather than
being members of an organization they are wage earners. Traits exhibited by
organizations that have weak cultures include: politicized organizational
environment, hostility to change, promoting bureaucracy in preference to creativity
and entrepreneurship, and unwillingness to look outside the organization for the best
practices.
Zammuto and Krakower (1991): The competing value framework of OC is a survey
framework which helps to examine OC. It explores the competing demands within
organization between their internal and external environments on the one hand and
60
between control and flexibility on the other. These conflicting demands constitute
the two axises of competing value model. Organizations with an internal focus
emphasize integration, information management and communication management
whereas organizations with an external focus emphasis growth, resources acquisition
and interaction with the external environment.
Westrum A. (2004): The underlying idea of OC is that the leaders by their
preoccupations shape a unit’s culture. Through their symbolic actions, as well as
rewards and punishments, leaders communicate what they feel is important. These
preferences then become preoccupation of the organization’s workforce, because
rewards, punishments and resources follow the leader’s preferences. Those who
align with the preference will be rewarded and those who do not will be set aside.
Most long time organization members instinctively know how to read the signs and
those who do not get expensive lessons.
Amidst the above inconclusive and confusing research findings; a number of
scholars have developed integrative frameworks of organisational culture (Allaire
and Firsirotu, 1984, Martin, 1992, and Schein, 1990) with however, little consensus
on the general theory of organizational culture (Fey and Denison, 2000). Besides,
despite the controversy over the measurement of organizational culture and lack of
agreement on the appropriate measures of effectiveness, researchers argued, better
understanding of the link between organizational culture and effectiveness as of
paramount importance to the development of organization studies (Fey and Denison,
2000, and Wilderom et al, 2000). Based on the above contention and extant
literature, this study tested the link between these constructs using organizational
culture model developed by Denison and his colleagues (Denison, 1984, 1990, 1996,
Denison and Mishra, 1995, and Denison and Young, 1999).
61
Hansen and Waterman (1989): OC can influence how people set personal and
professional goals, perform tasks and administer resources to achieve them. OC
affects the way in which, people consciously and subconsciously think, make
decisions and ultimately the way in which they perceive, feel and act. William J.
Tierney (1988): Researchers and practitioners alike often view culture as a new
management approach that will not only cure a variety of organizational ills but will
serve to explain virtually every event that occurs within an organization.
The model is based on four cultural traits: involvement, consistency, adaptability
and mission of effective organizations. These cultural traits have been further
expanded by Denison and Neale (1996) and Denison and Young (1999) to include
three sub-dimensions for each trait for a total of 12 dimensions. Further,
effectiveness was measured on sales growth, market share, profitability, new
product development, quality of products, employee satisfaction and overall
organizational performance (the details of the instruments used are given in the next
section).
William J. Tierney (1988): OC is that internal dynamic that has its roots in the
history of the organization, and derives its force from the values, processes, and
goals held by those most intimately involved in the organization’s working. An
organization’s culture is reflected in what is done, how it is done, and who is
involved in doing it. It concerns decisions, actions, and communication both on the
instrumental and symbolic level.
62
2.1.6.Different classifications to Organizational Culture
Due to the complex nature of organizational culture, one way of analysing this
concept is to consider the different theoretical frameworks or typologies. It is widely
recognized by the academic literature that different organizations have distinctive
cultures. Also, there may be more than one culture within organizations.
The CVF has been used in a number of studies to investigate organizational culture
(e.g. Harris and Mossholder, 1996). The CVF examines the competing demands
within organizations between their internal and external environments on the one
hand and between control and flexibility on the other (Bradley and Parker, 2001).
These conflicting demands constitute the two axes of the competing values model.
Organizations with an internal focus emphasize integration, information
management and communication, whereas organizations with an external focus
emphasise growth, resource acquisition and interaction with the external
environment.
On the second dimension of conflicting demands, organizations with a focus on
control emphasize stability and cohesion while organizations with a focus on
flexibility emphasize adaptability and spontaneity. Combined, these two dimensions
of competing values map out four major ‘types’ of organizational culture revealed in
theoretical analyses of organizations (Zammuto, Gifford and Goodman, 1999): The
internal process model involves a control/internal focus in which information
management and communication are utilised in order to achieve stability and
control. This model has also been referred to as a ‘hierarchical culture’ because it
involves the enforcement of rules, conformity, and attention to technical matters
(Denison and Spreitzer, 1991). The internal process model most clearly reflects the
traditional theoretical model of bureaucracy and public administration that relies on
63
formal rules and procedures as control mechanisms (Weber, 1948; Zammuto,
Gifford and Goodman, 1999)Bradley and Parker, 2001, 2006).
The open systems model involves a flexibility/external focus in which readiness and
adaptability are utilized in order to achieve growth, resource acquisition and external
support. This model has also been referred to as a ‘developmental culture’ because it
is associated with innovative leaders with vision who also maintain a focus on the
external environment (Denison and Spreader, 1991). These organizations are
dynamic and entrepreneurial, their leaders are risk-takers, and organizational
rewards are linked to individual initiative (Bradley and Parker, 2001, 2006).
The human relations model involves a flexibility/internal focus in which training
and the broader development of human resources are utilized to achieve cohesion
and employee morale. This model of organizational culture has also been referred to
as ‘group culture’ because it is associated with trust and participation through
teamwork. Managers in organizations of this type seek to encourage and mentor
employees (Bradley and Parker, 2001, 2006). The rational goal model involves a
control/external focus in which planning and goal setting are utilized to achieve
productivity and efficiency. This model of organizational culture is referred to as a
rational culture because of its emphasis on outcomes and goal fulfillment (Denison
and Spreitzer, 1991). Organizations of this type are production oriented, and
managers organize employees in the pursuit of designated goals and objectives, and
rewards are linked to outcomes (Bradley and Parker, 2001, 2006). Understanding of
organisational culture and cultural types also helps our understanding of why
managerial reforms may impact differently within and between organisations. An
organisation with a predominantly internal process culture, for example, may be
more resistant to reforms aimed at promoting innovation. Pollitt and Bouckaert
64
(2004, p.55) note: ‘We would also expect staff in high uncertainty avoidance
cultures to be more concerned with rule-following and more reluctant to risk
changing jobs - both factors of some importance for those reformers who want to
deregulate bureaucracies and encourage more rapid job change in the public
service’.
Bureaucratic Culture: This type of organisation values rules, hierarchical
coordination, formalisation and standard operating procedures; with the long term
concerns being efficiency, predictability and stability (Hellriegel et al.,2004: 365-
366). Managers within a bureaucratic organisation are good coordinators, organises
and enforcers of rules and procedures that are clearly defined. The tasks,
responsibilities and authority for the entire organisation’s employees are also clearly
stated. Hellriegel et al. (2004: 366) assert that most municipalities and government
institutions have bureaucratic cultures, which can hinder their effectiveness and
efficiency. The focus of attention of this organisation is internal, and the formal
control is stable.
Clan Culture: Attributes of this type of organisation are tradition, loyalty, teamwork,
personal commitment and self-management. The organisation focuses their attention
internally, yet their formal control is flexible. The members of this organisation
recognise an obligation that is beyond their job descriptions, with the understanding
that their contributions to the organisation may exceed their contractual agreements.
Employees identify that their long term commitment to their organisation, in the
form of loyalty, is in exchange for the organisation’s long term commitment to the
employee, in the form of security. Unity from this culture type is created through a
long and thorough socialisation process, where long term clan members serve as
mentors and role models for newer members. There is also strong peer pressure to
65
adhere to important norms within the organisation, and an environment is created in
which few departments are left completely free from normative pressures, which
may generate innovation and risk-taking behaviour (Hellriegel et al., 2004: 366).
Success of this type of organisation is assumed to depend on teamwork,
participation, consensus decision making, as well as employee sensitivity to
customers and concern for people (Hellriegel et al., 2004: 366).
Entrepreneurial Culture: This cultural form is characterised by high levels of risk-
taking, dynamism and creativity (Hellriegel et al., 2004: 367). Employees are
committed to experimentation, innovation and being on the leading edge. This
organisational culture type reacts quickly to change, as well as creates it due to the
fact that individual initiative, flexibility and freedom promoting growth are
encouraged and rewarded (Hellriegel et al., 2004: 367). Effectiveness within this
organisation means providing new and unique products and rapid growth. The
organisation focuses their attentionexternally and formal control orientation is
flexible in order to foster innovation and change.
Market Culture: According to Hellriegel et al. (2004: 367), the achievement of
measurable and demanding goals, especially those that are finance-based and
market-based are characteristics of this type of organisational culture. In this
organisation, the relationship between employee and organisation is contractual,
where the obligation of each is agreed in advance, therefore theformal control
orientation is quite stable. This is because the employee is responsible for an agreed
level of performance; with the organisation exchanging this for an agreed level of
remuneration and reward in return (Hellriegel et al., 2004: 367). Competitiveness
and a profit gaining orientation therefore exist throughout this organisation because
66
increased levels of performance from the employee are rewarded through increased
compensation from the organisation (Hellriegel et al., 2004: 367).
Schein, (1996) The primary distinctions are differences between culture as an
attribute possessed by organizations versus culture as a metaphor for describing
what organizations are. The former approach assumes that researchers and managers
can identify differences among organizational cultures, can change cultures, and can
empirically measure cultures. The latter perspective assumes that nothing exists in
organizations except culture, and one encounters culture anytime one rubs up against
any organizational phenomena. Culture is a potential predictor of other
organizational outcomes (e.g., effectiveness) in the former perspective, whereas in
the latter perspective it is a concept to be explained independent of any other
phenomenon.
The primary distinctions are differences between cultures as an attribute possessed
by organizations versus culture as a metaphor for describing what organizations are.
The former approach assumes that researchers and managers can identify differences
among organizational cultures, can change cultures, and can empirically measure
cultures. The latter perspective assumes that nothing exists in organizations except
culture, and one encounters culture anytime one rubs up against any organizational
phenomena. Culture is a potential predictor of other organizational outcomes (e.g.,
effectiveness) in the former perspective, whereas in the latter perspective it is a
concept to be explained independent of any other phenomenon.
Schein, (1996) agree with the idea that culture is a socially constructed attribute of
organizations which serves as the “social glue” binding an organization together. A
majority of writers have come to an agreement that it refers to the taken-for-granted
values, underlying assumptions, expectations, and definitions present which
67
characterize organizations and their members (that is, they have adopted the
functional, sociological perspective). Culture represents “how things are around
here,” or the prevailing ideology that people carry inside their heads. Culture affects
the way organization members think, feel, and behave. Culture is an enduring, slow
to change, core characteristic of organizations; climate, because it is based on
attitudes, can change quickly and dramatically. Culture refers to implicit, often
indiscernible aspects of organizations; climate refers to more overt, observable
attributes of organizations. Culture includes core values and consensual
interpretations about how things are; climate includes individualistic perspectives
that are modified frequently as situations change and new information is
encountered. The approach to change in this article focuses squarely on cultural
attributes rather than climate attributes. It considers the “links among cognitions,
human interactions, and tangible symbols or artifacts typifying an organization”
(Detert, Schroeder, & Mauriel, 2000:853), or, in other words, “the way things are”
in the organization rather than people’s transitory attitudes about them.
Westrum A. (2004): He identifies 3 typical patterns of organization culture. The first
is a preoccupation with personal power and glory. The second is a preoccupation
with rules, positions and departmental turf. The third is the concentration on the
mission itself, as opposed to persons or positions. He calls these pathologic,
bureaucratic and generative patterns respectively. Thus pathological becomes a
power oriented culture, bureaucratic rule oriented and generative performance
oriented.
Zammuto and Krakower (1991): Combined these two dimensions of competing
values four major types of organizational culture revealed in theoretical analysis.
They are 1) Human relations (Group culture) model, 2. Development culture (Open
68
systems model) 3. Formalized and structured model and 4. Rational model or
production oriented model. While these four culture types appear to be
incompatible, research has suggested that the different models of culture can and do
coexist in the same organization. A balance between these four culture types is
regarded as desirable.
Hosfede (1980): Talks of the regional and national cultural groupings that affect the
behavior of the organizations. He conceived culture as a construct which manifests
itself in an organization as a result of the organization’s location within a particular
society. On the basis of an extensive analysis of 88,000 responses to a questionnaire
survey of IBM employees in 66 countries, Hofstede argued that there are four
discrete dimensions of culture: He puts forth five dimensions of national influences:
1. Power distance 2. Uncertainty avoidance 3. Individualism versus collectivism 4.
Masculinity versus femininity 5. Long term versus short term orientation.
1) Individualism (the extent to which people are oriented towards self-interest versus
an orientation towards the interests of a wider group of which they are a part);
2) Uncertainty avoidance (the extent to which people seek to minimize uncertainty
versus the extent to which they are tolerant of ambiguity);
3) Power distance (the extent to which relationships between superior and
subordinate are distant and formal versus close and informal); and
4) Masculinity (the extent to which success is defined in terms of assertiveness,
challenge and ambition, rather than in terms of caring and nurturing).
On the basis of his research, Hofstede demonstrated that countries differ
significantly in their score on these dimensions. In addition to the relevance of the
69
framework, his work has been acknowledged to have been based on a rigorous
research design, a systematic data collection and a coherent theory to explain
national variations (Sondergaard, 1994).
Deal and Kennedy’s organisational culture typology Deal and Kennedy (1988)
developed two particular aspects of organizational culture. They firstly describe four
types of culture, which are based on the effects of the degree of risk and speed of
feedback that comes from the environment on decision-making. Secondly, Deal and
Kennedy (1988) added a perspective that includes the existence of strong and weak
cultures. Figure 2.3 illustrates the second typology that will be discussed with
regards to organisational culture as proposed by Deal and Kennedy (1988).
Work and play hard culture: Group members of this type of culture who both work
and play enthusiastically tend to be unified. Organisations with low risk but rapid
feedback would typically have this type of culture, which emphasises fun and action
(Brown, 1995: 71).
Process culture: This culture places emphasis on the systems and procedures within
the organisation. This type of culture can typically be found in organisations in a
low risk environment, with slow feedback, where the success of the organisation
comes from attention to detail. The lack of feedback in this type of organisation
means that employees focus more on how they perform a task, as opposed to what
task they perform (Brown, 1995: 71).
Macho culture: This type of culture is one that is based on the individual employee
and the ability of the crucial person to be able to achieve the organisation’s
objectives. This culture will be found in organisations where risk is high, and
feedback on the quality of their actions and decisions is rapid.
70
Bet your company culture: This cultural type emphasises technical skill, and can be
found in organisations where the risks are very high, yet the feedbackis slow when
coming from the environment. Due to the slow feedback, this classification relies
heavily on the knowledge of technical specialists to get it right within the directional
guidelines put forward.
Deal and Kennedy’s (1988; in Martin, 2001: 597) second perspective is that of
strong and weak cultures. A strong culture exists when almost all members support
it, or if it is composed of deeply held value and belief sets (Deal and Kennedy, 1988;
in Martin, 2001: 597). Some characteristics that are associated with a strong culture
are a widely shared philosophy, concern for individuals, and recognition of heroes,
belief in ritual and ceremony, well-understood informal rules and expectations, and
importance of individual contribution to the whole organisation (Deal and Kennedy,
1988; in Martin, 2001: 598). On the other hand, a weak culture is one that is not
strongly supported or rooted in the activities and value systems of the group (Deal
and Kennedy, 1988; in Martin, 2001: 597).
Shein (1985): classified organization into three dimensions: 1. Assumption at the
first level 2. Values at the second level 3. Aretefacts at the third level.
In relation to function of O Cs Dennison (1990) explains OC in 4 distinct
hypotheses:
1. The contingency hypothesis: the notion that a common perception,
communal beliefs, and values among the organizational members will
enhance internal coordination and promote meaning and sense for the
members.
71
2. The mission hypothesis: the notion that a communal sense of purpose,
direction and strategy can synchronize and move organizational members
toward collective goals.
3. The Involvement/ Participation Hypothesis: the notion that involvement
and participation will contribute to a sense of responsibility and
ownership, and organizational commitment and loyalty.
4. The adaptability hypothesis: the notion that customs and beliefs that
enhance an organization’s ability to receive, construe and translate
information from the various sources into internal organizational and
behavioral changes will promote its survival, growth and ultimately its
development.
Quinn and McGrath (1985): Divided the profile of OC in the sub profiles based on
the awareness of the members of the organization and information processing. A.
Reasonable Culture: It holds the fundamental presumptions of stressing efficiency,
seeking objectiveness and pursuing work orientation. Productivity, efficiency and
profit are major core values. The culture is objective-oriented. This culture appears
mostly in commercial and profit organizations. B. Developing Culture: Holds
fundamental presumptions of ‘creating future’, ‘conquering environment’ and
‘upholding idealism’. This organization is mostly composed of members willing to
fight for their ideals. Performance of the organization depends on external support
and fight for resources. It presents features of innovation orientation and strenuous
pursuit for progress. C. Consensus Culture: Consensus culture is an organizational
culture which holds the fundamental presumptions of ‘crowd relationship’, ‘caring
support’ and ‘harmonious gathering’. Its purpose is to pursue brain storming and
diversified participation. It stresses internal atmosphere of harmony in the
72
organization. The basis of power is distributed to various members of the
organization. This kind of culture often appears in small sized family enterprise and
organizations. D. Echelon Culture: OC of Echelon Culture holds ‘acting in
accordance with the law’, ‘echelon control’ and ‘strenuous pursuit of stability’. It
stresses concentration of power and also the stable functioning of internal systems.
Official law and regulations and administrative procedures prompt the action of
members of the organization. Features of echelon culture include values of stability,
control, predictability, coordination and accountability.
Almost all organizations develop a dominant type of organizational culture over
time, and these culture types can be reliably and validly assessed using an
instrument based on the competing values framework (see Cameron & Quinn,
1999). Particular types of cultures form as certain values, assumptions, and priorities
become dominant when organization address challenges and adjust to changes.
These dominant cultures help the organization remain consistent and stable as well
as adaptable and flexible in dealing with the rapidly changing environment. Whereas
organizational cultures often change in predictable ways over time (Cameron &
Whetten, 1981;Quinn& Cameron, 1983).
Rowe, Mason, Dickel, Mann and Mockler’s organisational culture typology Rowe et
al. (1994: 473) developed a classification which identifies four types of cultural
environments. These classifications of organisational culture suggest that an
organisation’s culture provides clues to appropriate change strategies, and by
studying these clues, an organisation can increase the likelihood of successful
implementation of a strategic change (Rowe et al., 1994: 473).
The different combinations of organisational values or norms and the organisation’s
orientations, which produce the four types of cultural orientations within which an
73
organisation is believed to function (Rowe et al., 1994: 473). An organisation’s
values range from achievement in an open system, to performance in a controlled
system (Rowe et al., 1994: 473).
Achievement in an open system refers to an organisation being innovative; whereas
performance in a controlled system refers to an organisation being market orientated
and following market trends. An organisation’s orientations can be either technical,
which is differential; or social, which has high levels of integration and coordination
(Rowe et al., 1994: 473). Within a technical orientation, an organisation revolves
around differentiation and task orientation, and the social orientation refers to an
organisation being more people and relationship orientated. The combination of
such values or orientation will bring about a specific cultural environment (Rowe et
al., 1994:473).
The four organisational cultures have different characteristics:
The productive culture: This cultural type concentrates on efficiency and
consistency within an organisation. The organisational values and norms within this
cultural environment stress performance, and the organisation’s orientation is
technical. Due to the technical orientation combined with the controlled system, this
type of organisation is likely to resist change.
The quality culture: The focus in this organisational cultural environment is on the
growth of the organisation’s employees through problem solving and effective
planning. In practice, an organisation with this type is more flexible in its
approaches and therefore more accepting when change occurs. The organisation
values the achievement of individuals, and there is a strong technical orientation
within the organisation.
74
Entrepreneurial Culture: It is therefore more inclined towards risk taking and
initiating change. An advantage of this culture is that change is easily initiated and
made. This organisation achieves innovation because it values individual
achievement and has a more social orientation.
The supportive culture: An organisation with this cultural type produces an
organisational environment that is characterised by teamwork, cooperation, and
reinforcement. The focus of organisational values and norms is on performance, and
the organisations orientation is social, and therefore this organisation is quick and
ready to respond to change.
Holland (1973): For higher education administrators to successfully adapt to change,
it is important that they understand the historical culture of higher education and the
changes that have occurred to that culture. The culture of an environment is
comprised of the values of the individuals within it but generalizing about the
personalities and value sets of the diverse members of a college community is
difficult. William J. Tierney (1988). A central goal of understanding OC is to
minimize the occurrence and consequences of cultural conflict and help foster the
development of shared goals. Studying the cultural dynamics of educational
institutions and systems equip you to understand and, hopefully reduce adversarial
relationships. It will enable to recognize how those actions and shared goals are
most likely to succeed and how they can best be implemented. The author
advocating a broad perspective, affirms that OC encourages practitioners to:
*consider real or potential conflicts not in isolation but on the broad canvas
of organizational life
*recognize structural or operational contradictions that suggest tensions in
the organization
75
*implement and evaluate everyday decisions with a keen awareness of their
role in and influence upon organizational culture
*understand the symbolic dimensions of ostensibly instrumental decisions
and actions; and
*consider why different groups in the organisation hold varying perceptions
about institutional performance.
Castiglia Beth (2006): In his study identifies the sources of change in the person –
organization fit of faculty that might have resulted from cultural change, determine
the ways in which those changes manifest themselves, and use this information to
facilitate improvements in university management. If administrators recognize and
understand the sources of faculty organizational fit, they might be able to mitigate
the negative impact that would result from poor fit.
2.1.7 Mechanisms for Developing Organizational Culture
It is important for organizations to develop and manage organizational culture
effectively in order to fully utilise the advantages of having a strong organizational
culture (O’Reilly, 1989: 19). The advantages of a strong organizational culture
include having strong norms that provide clear guidance about what is important in
the organisation, providing for group reinforcement of acceptable behaviour and
attitudes, as well as focusing employees’ attention (O’Reilly, 1989: 19). O’Reilly
(1989: 20-23) has identified four mechanisms that are used to develop and manage
organizational culture, and realise its advantages. In order to attain these advantages,
it is therefore important for the selected local municipality to understand, develop
and manage their organizational culture according to the following mechanisms:
76
Participation: Systems that enable participation between employees are critical in
developing or altering a culture. These are important because they encourage
employees to become involved, and to send signals to other employees, therefore
encouraging employees to make small choices and develop a sense of responsibility
for their actions. When individuals choose of their own will to do something, they
often feel responsible, and therefore the commitment of the individual is more
binding.
Management of symbolic action: The management of symbolic actions involves
clear, visible actions on the part of management, supporting organizational cultural
values. Employees in organizations usually wish to know what is important, and this
information is received by watching and listening to supervisors, or those above
them. Consistency in these actions is also important, because if management states
that something is important, and behaves in ways that support that message, then
employees begin to believe what management is saying.
Information from others: Consistent messages from co-workers are as important a
determinant of culture as clear messages from management. New employees often
look to others for explanations of what to do and how to interpret events.
Comprehensive reward systems: A comprehensive reward system is the final
mechanism for promoting and altering culture. Kerr and Slocum (2005: 137) believe
that reward systems communicate and reinforce the values and norms that comprise
of the organizational culture. A reward system could be monetary, such as bonuses
for quotas achieved; or non-monetary, such as recognition and approval. Smith
(2003: 258) agrees that this is an important aspect when attempting to change or
manage an organisation’s culture because employees will be more likely to alter
77
their own behaviours and norms if they believe that they will be rewarded.
2.2Organizational Performance (OP)
Improving the productivity of an institution is essential to its survival in the
competitive world. The purpose of all productivity related endeavors is to bring
about lasting improvements in the performance of an education institution (Shrestha,
2005). Smart and Hamm (2003): state that, measuring OP in education is very
important. They further observe that, if an academic institution wants to deliver
quality graduates through the coursework they offer, then they should know how to
do this accurately. If there is anything that an education institution should do, it
should be the evaluation of its performance. This is very important, especially in the
case of colleges and universities. This is because the quality of education being
offered by these institutions is of vital importance because it is this quality that is
instilled in the individuals that they produce in the corporate world in due time.
Measuring performance in education is then an essential, and any person employed
in the education industry would certainly attest to that fact.
According to Richard et al. (2009), OP encompasses three specific areas of firm
outcomes: financial performance (profits, return on assets, return on investment,
etc.); product market performance (sales, market share, etc.); and shareholder return
(total shareholder return, economic value added). Specialists in many fields are
concerned with organizational performance including strategic planners, operations,
finance, legal, and organizational development. Richard et al (2009): OP however
means different things to different institutions. There are many parameters an
institution may use to measure its performance. Since the ultimate goal of most
business organizations is profitability, most organizations will measure their
performance in terms of in terms of net income, revenue, and other financial data.
78
Richard et al (2009): However most education institutions are for non – profit and
the institutional owners may use one of the criteria for assessing their performance:
number of employees, number of students, number of market driven programmes,
physical expansions, success of their programmes, increased market share, financial
sustainability among other parameters. Ultimately success and performance of an
institution will begauged by how well an institution does relative to the goals it has
set for itself.
Muya James Ng’ang’a & Wesonga Justus Nyongesa (2012): OP is something for
which all education institutions strive for, regardless of their size. Small institutions
want to get big, big institutions want to get bigger. Indeed, institutions have to grow
at least a bit every year in order to accommodate the increased education needs that
emerge over time. Smart and St. John, (1996): With the passage of time, salaries
increase and the costs of employment benefits rise as well. Even if no other
institutional expenses rise, these two cost areas almost always increase over time. It
is not always possible to pass along these increased costs to customers and clients in
the form of higher fee. Consequently, performance and growth must occur if the
institutions wish to keep up their level of performance.
Smart and St. John, (1996): OP has the potential to provide small education
institutions with a myriad of benefits, including things like greater efficiencies from
economies of scale, increased power, a greater ability to withstand market
fluctuations, an increased survival rate, greater profits (for profit making
institutions), and increased prestige for institutional members. Many small
institutions desire performance because it is seen generally as a sign of success and
progress. Institutional performance is, in fact, used as one indicator of effectiveness
for small institutions and is a fundamental concern of many practicing managers.
79
Performance Based Management Special Interest Group (PBM SIG) defines OP as
the ongoing monitoring and reporting of a programme accomplishments, particularly
progress towards pre-established goals.Performance measures may address the type
or level of programme activities conducted (process), the direct products and
services developed by a programme (output), and/or the results of those products
and services (outcomes). A programme may be any activity, project, function or
policy that has an identifiable purpose or set of objectives. Performance measures
quantitatively tell us something important about our product, services and the
processes that produce them. They are a tool to help us understand, manage, and
improve what our organizations do. Effective performance can let us know:
*How well we are doing
*If we are meeting our goals
*If our customers are satisfied
*If our processes are in statistical control and
*If and where improvements are necessary
Raudan (2008): observes that, a high degree of OP is related to an organization,
which has a strong culture with well integrated and effective set of values, beliefs,
and behaviors. However, many researchers concurs that culture would remain linked
with superior performance only if the culture is able to adapt to changes in
environment conditions. HR marketer (2005) states that, studies have shown that
organizational culture has a direct impact on other vital performance outcomes of
any organization, including customer satisfaction and business growth and the
strong effects of organization culture are consistent across a wide spectrum of
80
businesses and industries, from education institutions, churches, automotive sales
and service And fast-food retailing to home construction and computer
manufacturing. Corporate culture can affect organization’s bottom line.
Ginsberg (1991), Lawson (1992), Bemowski (1991): Nowadays higher education is
being driven toward commercial competition imposed by economic forces resulting
from the development of global education markets and the reduction of government
funds that forces tertiary institutions to seek other financial sources. Tertiary
education had to be concerned with not only what the society values in the skills and
abilities of their graduates but also how their students feel about their educational
experience. These new perspective call attention to the management processes
within the institution as an alternative to the traditional areas of academic standards,
accreditation and performance indicators of teaching and research.
Owlia and Apinwall (1997): Examined the views of different professionals and
practitioners the quality in higher education and concluded that customer orientation
in higher education is a generally accepted principle. They construed that form the
different customers of higher education students were given the highest rank.
Student experience in a tertiary education institution should be a key issue of which
performance indicators need to address.
Evans (1996): points out that OP evaluates the degree of completion of the strategic
goal of an organization. It is an indicator of the overall competitiveness of the
organization. Evaluation on suitable organizational performance is able to help
organization managers to understand the current status of the organization. Most
commonly used indicators include income, output, and profit rate of an organization.
81
Hsu Nan-hsiung (2007): measures such as leadership, planning, decision-making,
coordination and communication all of which should be paid attention to and
interconnected. This is why ‘efficiency’ and ‘efficacy’ should be jointly named
organizational performance. Today, it becomes a mandate for Private Higher
Learning Institutions to facilitate ongoing organizational development interventions,
which will ensure that everyone who belongs to the institutions is able to develop
their skills and contribute to the fullest.
Forest (2002): Asserts that all colleges and universities can and must grow smarter.
‘In the same sense that we apply ourselves to instilling intellectual curiosity among
students, we must encourage and reward learning at the organizational level’.
McHargue (1999) argued the institutional characteristics used for this study were
age of the institution, number full time employees, perceived level of commitment to
research productivity, effective teaching and learning, institutional/professional
service, and community service. It has been argued that the age is an important
element in the study of performance for the reason that it can be evidence for
stability and reputation for institutional or professional services.
2.2.1 Culture-performance Link: A Historical Overview
Like many other organizational studies, the root of culture performance link can be
traced back to Hawthorne Studies (Roethlisberger and Dickson, 1939 – 1945) that
unearthed the presence of informal social system and shared assumptions and beliefs
amongst the workers, thus revealed the presence of “organizational culture” even
though not termed so during the investigation (Baba, 1996). Peters and Waterman
(1982) further stamped the above causal association between culture and
82
performance. They argued in their landmark book In Search of Excellence that
superior firm performance is possible only when a company moves away from a
pure technical and rationalist approach towards a more adaptive and humanistic
approach. In the same vein, Deal and Kennedy (1982) reported that shared values
act as informal systems that guide the organizational members as to what is expected
of them hence positively impacting organizational performance.
By the end of 1980’s however, scholars seriously started questioning the causal link
between culture and firm performance as proposed above. Saffold (1988) for
instance, recognizing the likely effect of culture on performance concluded that
“simple model for relating culture to performance no longer fits with the knowledge
scholars have developed about the role culture plays in organizational analysis: a
more sophisticated understanding of the tie between organizational culture and
organizational outcomes must be developed” (pp.546). Thus, 1990’s gave rise to
plethora of research studies where researchers made great strides in testing the
relationship between culture and performance. However, these researchers showed
genuine caution in testifying such a link. The following section
2.2.2 Culture Performance Link: Empirical Evidences
Researchers like Denison (1990) argue that the performance of an organization is
related to the degree to which culture values are strongly held or widely and
commonly shared. Similarly, Ogbonna (2000, 1993) argue that widely held and
strongly shared values help management in minimizing the undesired consequences
on certain strategic alternatives by predicting the employee reactions. Gordon and
DiTomaso (1992) also found that “a strong culture as measured by the consistency
of perceptions of company values is predictive of short-term future company
performance” (pp.794). Some argue that the compatibility between individual values
83
and organisational culture values, that is, value congruency enhances employee
commitment (Nazir, 2005), reduces labor turnover (Sheridan, 1992) and fosters job
satisfaction (O’Reilly et al., 1991).
However, Soerson (2002) in large publicly traded firms concluded culture
performance link is environment sensitive. He found that strong cultures were
yielding when firms operated in rather stable environments. Contrary to this, weak
culture proved advantageous for firms in fluctuating environments. In a similar vein,
Gordon and DiTomso (1992) argued that culture will contribute to firm performance
if it adapts to the changing environments. Some theorists recommended that cultural
strength is an advantage in highly competitive environments where such conditions
are recognized by firms in advance (see for example, Burt et al., 1994). Kotter and
Heskett (1992) on a sample of 207 companies engaged in 22 areas of manufacturing
in USA concluded that in order to produce good financial results, firms with strong
cultures need not only to be environment conscious but also need to anticipate future
needs in advance. Germendia (2004: 1021) noted that “a strong culture may even be
detrimental to success if the consistency it involves leads to slavish adherence to
routine and conformist attitudes”. Researchers like Ogbonna (2000) reported that
culture must not only be strong (widely shared) for superior performance, but it must
have unique qualities and traits which cannot be imitated.
Four different views are being presented in the literature on the relationship between
organizational cultures on performance:
1. Denison, (1984). The most common one is the so-called strong-culture thesis. It
has often been assumed that commitment of an organization’s employees and
Organizational Culture and Performance managers to the same set of values, beliefs
84
and norms will have positive results – that the ‘strength’ of ‘corporate culture’ is
directly correlated with the level of profits in a company. Researchers adopting this
hypothesis tend to place new kinds of human relations (involving employees in
decision-making, allowing them some discretion, developing holistic relations, etc.)
at the core of organizational culture (e.g. Peters and Waterman, 1982; Ouchi, 1981).
It is frequently argued that a distinct organizational culture contributes to
performance through facilitating goal alignment – a common culture makes it easier
to agree upon goals as well as appropriate means for attaining them. There are also
positive effects on motivation – a shared culture encourages people to identify with
the organization and feel belongingness and responsibility for it, it is assumed
(Brown, 1995).
2. There are also, however, researchers that suggest the reverse relationship
between culture and performance: that high performance leads to the creation of a
‘strong’ corporate culture (cultural homogeneity). It is possible that success brings
about a common set of orientations, beliefs and values. A particular workplace spirit
may develop and there may be little incentive or encouragement to question ‘ways
of doing things’, thus forming broad consensus and possibly conformism. This
culture may be more than just a by-product of high performances: values and
meanings may reproduce a successful organization and thus contribute to
performances. It may also be a source of conservatism and a liability in situations
calling for radical change.
3. Wilkins and Ouchi (1983), presents another idea that draws upon contingency
thinking to suggest that under certain conditions a particular type of culture is
appropriate, even necessary, and contributes to efficiency. For example, consider
85
culture an important regulatory mechanism in organizational settings too complex
and ambiguous to be controlled by traditional means (bureaucracy and the market).
In corporate situations where these means of regulation function well, corporate
control as a distinct form is less significant.
4 Still another version says that ‘adaptive cultures’ are the key to good performance,
i.e. cultures that are able to respond to changes in the environment. Such cultures are
characterized by people willing to take risk, trust each other, are proactive, work
together to identify problems and opportunities, etc. It may be tempting to say that
‘adaptive cultures’ are self-evidently superior. There easily enters an element of
tautology here: ‘adaptive’ implying successful adaption and this is per definition
good for business. But as Brown (1995) remarks, there are organizations that are
relatively stable and fit with a relatively stable environment, and risk-taking and
innovation are not necessarily successful. Too much change can lead to instability,
low cost-efficiency, risky projects and a loss of sense of direction. It is very difficult
to investigate and test these diverse ideas.
2.2.3 Causal link between culture and performance
The failure to establish an empirical link does not mean that no such link exists.
Empirical study in the area is very difficult to carry out. Not only is culture difficult
to capture but so is performance (Sköldberg, 1990). It is common sense that
something that we can call ‘corporate culture’ will have an impact on many types of
actions in organizations and consequently also on corporate financial results. Any
such influence may, however, be lost among all the factors and interaction patterns
that have something to do with these results. Bhaskar’s distinction between ‘the
domain of the empirical’, experiences created by direct and indirect observation, and
‘the domain of the real’, events which take place whether or not we observe them, is
86
useful here (Outhwaite, 1983). The empirical is distinct from the real partly because
not everything is observed and partly because not everything is observable. This
view strongly warns against an empiricist approach. In the absence of opportunities
to ‘observe’ culture and its role, we can of course speculate about it. As we have
seen, however, such speculation is also problematic.
Instead of giving up the idea of finding clear-cut empirical answers to the question
of ‘corporate culture’s’ effect on performance, some researchers have argued that a
more refined approach which takes into account the complexity of culture should
guide empirical studies. Saffold (1988: 546), for example, argues that it is
reasonable to expect that ‘a phenomenon as pervasive as organizational culture
affects organizational performance’ but current models oversimplify the
relationship.
He points to five important shortcomings of empirical studies: (1) ‘strongculture’
studies tend to emphasize a single, unitary organizational culture even though
multiple subcultures rather than unitary cultures seem to be the rule; (2) measures of
the ‘strength’ of culture are ambiguous partly because in the study of culture
‘meanings are central, not frequencies’ (Van Maanen and Barley, 1984: 307); (3)
there is a preference for broad-brush cultural profiles, focusing on very general
values and norms, which fail to do justice to the complexity of culture; (4) there is
insufficient attention to the variety of possible culture–performance links. A
particular cultural feature may affect different performance-related organizational
processes in different directions. Development of shared meanings may, for
example, have a positive effect on organizational control but at the same time create
conformism and reduce the organization’s capacity to learn and change; (5) there are
87
many methodological problems in existing studies, ranging from overreliance on top
management views to the absence of control groups.
Saffold goes on to suggest an enriched framework which involves the ‘use of
appropriate measures of culture’s impact’, the use of contextual rather than modal
analysis (i.e. avoidance of static and abstract categorizations), and attention to
multiple interactions. This framework involves: (1) measures of cultural dispersion,
the degree to which cultural characteristics are dispersed throughout an organization
(sociologically, psychologically, historically and artefactually); (2) measures of
cultural potency (the power of the culture itself to influence behaviour); (3) studies
of ‘how specific culturally conditioned processes contribute to outcomes’; and (4)
the recognition of multiple, mutually causal interactions.
Hardly surprisingly, he notes that ‘if it all sounds complex, it is – unavoidably so’,
but believes that his framework ‘reflects the true richness of culture–performance
relationships’. In this observation he is probably correct.
Saffold’s ‘three correctives’ will probably discourage researchers from attempting
the task of studying culture–performance relationships. Siehl and Martin (1990)
suggest that there are more worthwhile projects. The four propositions about the
connection between culture and performance treated in the previous section all
presumably offer some input to thinking and are worth taking seriously also in the
absence of a firm answer to the possibly naive question of which is the correct one.
Even if research should converge in finding support for one of these as being more
frequently valid than the others, there are still reasons for practitioners to think
through their own organizational situation in relationship to various views on
culture. Even if studies of large samples of organizations should indicate no or only
a weak general correlation between e.g. ‘strong’ cultures and performance, a specific
88
organization may still benefit from efforts to develop more shared values and
orientations.
2.3 Social Acceptability (SA)
According to the Dictionary.com [1], the noun acceptance means: 1) the act of
taking or receiving something offered; 2) favourable reception, approval, favour; 3)
the act of assenting or believing: acceptance of a theory; or 4) the fact or state of
being accepted or acceptable. Wüstenhagen et al. [2] suggest three components of
social acceptance, i.e.: sociopolitical acceptance, community acceptance and market
acceptance.
The definition of social acceptability contains five subcategories each of them
contributes to clarify the concept of social acceptability.
Acceptance: consent (positive acceptance) or not (negative acceptance) to buy a
product present on the market; refers to the utilization by the consumer
Voluntary Acceptance (Voluntary Acceptance of the Risk): personal acceptance of
exposure to the risk involved with a technology according to personal values and
social context Risk Acceptability: acceptance of exposure to the risk by a
population, often judged by governance’s stakeholders Short-Term Social
Acceptability: technology is considered as a viable alternative because it is in
accordance with society’s standards (way of life) and social context (values, beliefs,
norms, etc.) Long-Term Social Acceptability: technology is in accordance with
sustainable development, society’s projects (long term view), and refers to society’s
hope for the future generations
According to Schindler et al. (2004) [3], acceptability, as a psychological paradigm,
means: A condition that results from a judgmental process by which individuals 1)
compare the perceived reality with its known alternatives; and 2) decide whether the
89
real condition is superior, or sufficiently similar, to the most favorable alternative
condition. Wolfe et al (2002) worked out a conceptual frame to better understand
and predict the social acceptability of controversial technologies (PACT: Public
Acceptability of Controversial Technology). They distinguished public acceptability
(technological method at issue conforms with societal values and norms sufficiently
well to be placed on the table as a viable alternative to other technologies) from
technical feasibility (technology performs as promised in a reliable and predictable
way) and technology deployment (process by which a technology is actually put in
place and used). They defined acceptability as a willingness to consider the
technology in question as a viable alternative.
Brunson (1996) proposes following definition to SA; ‘a condition that results from a
judgmental process by which individuals (1) incorporate the perceived reality with
its known alternatives; and (2) decide whether the real condition is superior or
sufficiently similar to the most favorable alternate condition’. The adjective ‘social’
implies that what matters is some aggregation of individual judgments. Such
aggregated measures can range from an informal consensus among participants at a
public meeting to formal codified expressions.
Thomas A. Dyer and Peter G Robinson (2006): The Term SA is used synonymously
with service user’s satisfaction, with care received, where experiential views are
assessed quantitatively. People can express satisfaction when they have experience
of the service by an auxiliary. However the views of people who have not
experienced the service are equally important if their use is to be expanded. Quality
assurance requires a service’s social acceptability or legitimacy be considered as a
key part of service quality assessment. The inclusion of varieties in the sampling
90
methods like age, social and cultural backgrounds ensures the influence of various
perspectives.
Brunson (1996): The judgments about acceptability are made at the individual level,
but they evolve in response to a host of external (typically but not always social)
influences. Therefore the term social acceptability is reserved to refer to aggregate
forms of public consent whereby judgments are shared and articulated by an
identifiable and politically relevant segment of citizenry.
George H. Stankey and Bruce Shindler (2006): In his article gives five reasons why
social judgments, irrespective of their level of acceptance are important to the
management. (1) If decisions fail to address the pressing public concerns, successful
implementation is unlikely irrespective of scientific rigor. Although basing decisions
on the best science is important, public judgments regarding the acceptability are
informed by a variety of factors other than science, including personal experience,
ethical concerns and trust in individuals and institutions. (2) Accommodating public
concern in decision making is considered to be an essential part of sound and
legitimate political decision making by the principle of US governance. (3)
Management of organizations, policies, or programmes requires public
understanding and support to survive. (4) Acceptability judgments imply a need for
action. If a situation is judged acceptable, what is required to maintain it? If a
situation is judges unaccepted, what is required to improve it? (5) Although SA
might be seen as constraining effective and efficient incorporation of science in
decision making the pursuit of social acceptability also offers an opportunity to
inform and educate the stakeholders the complexities, promoting mutual learning
and the search for innovative management solutions.
91
Wondolleck and Yaffee (2000): At their foundation SA judgments are shaped by
underlying value system held by individuals. Moreover the judgment process is
dynamic, and judgments are always provisional; as new information emerges
context changes and judgments also can similarly change. Such knowledge and
policy implications are interpreted and evaluated through various contextual and
normative lenses. These include personal experience and knowledge, ethical;
concerns, trust and confidence in individuals and institutions, contextual
circumstances, attitudes and beliefs and perception of acceptable risk.
Jose- Frederic Derobaix and Francois Leveque (2004): The quest for SA becomes a
false problem, if the overall awareness on the issue in discussion is almost non-
existent and if there is outright hostility to the issues. The social acceptability issue
only makes sense in a rational choice paradigm, taking for granted that every agent
has an obvious perception on the subject.
Bernette (1993): SA is in fact constrained by previous learning, standardized
responses and conventional values. Values are viewed as a limited set of evaluative
standards for means and ends of action. They are high order determinants of
preferences and actions.
Straughan (1993): Each individual will have a rank ordering of value orientations, of
which he or she is at least partially aware. As a result of this ordering of value
orientations an individual would be willing to accept tradeoffs. The nature of these
tradeoffs is not readily apparent even knowing an individual’s ranking of values.
Certain ideas or practices may only be acceptable if the alternative is worse. For
some people neither of these alternatives will be acceptable because they violate a
value that is absolute. Conversely a new technique may be adopted, but still not
92
considered acceptable, if forced by law. Thus adoption can not necessarily be
construed as the same thing as acceptability. In any society certain values will
predominate, but people with other values will predominate.
Bruce Shindler & Mark W. Brunson et al (2004): Acceptability has to depend on
values and interests. In a complete analysis of the relation between values and
acceptability three questions need to be answered. First, where do values come
from? Second, how do they interact with each other in confronting a specific
situation? Third, what do people know about the object, concept or situation?
Bernette (1953): Points out there are three main factors that determine acceptance of
a new idea. One is the character of the ides. Second is the situational feature
connected to the idea and the range in qualities of the possible accepters is the third
factor. These three factors will interact with each other in complex ways that
determine rejection or acceptance.
Bernette (1953): His factors of acceptance rely heavily on a model of human beings
as rational actors calculating the benefits and costs of new ideas to their economic
self interest. The multiple values that the author claims that the people use to
determine the acceptance or rejection of an idea are easily collapsed into one
possibly two values that can be summed up as material benefits and internal needs
for power, prestige and pleasure. Little is said of spiritual, ecological, amenity,
participatory or egalitarian values all of which may coexist within individuals and
groups.
Walter Firey (1960): A resource process which is consistent, by people’s own modes
of reasoning, with important themes or patterns in that people’s culture, is more
likely to be valued, and hence accepted than a process which is more likely to be
93
valued, and hence adopted, than a process which is inconsistent with those themes.
He also recognizes inconsistencies in any culture and that an activity or idea may be
adopted even though it is not consistent with patterns in that culture.
Richard Hansis (1995): Adoption and acceptability are not the same. Exposure and
economic motives could be the reasons for adoption of ideas and practices received
by diffusion.
Walter Fierey (1960): He concluded that SA or retention of any particular
programme or policy depends on the extent to which it satisfies 3 requisites: It must
be (1) physically possible (specially refer to ecological processes) 2. Economically
viable and 3 Culturally adaptable. Stankey (1996) noted that Firey’s three criteria
are mutually constraining; each is necessary.
Bruce Shindler & Mark W. Brunson et al (2004): Policies and practices lacking
social acceptability will ultimately fear; even if they are profitable and supported by
sound science. Acceptability is most often observed by its absence, because
unacceptable conditions are what spark political action to restore prior or preferred
conditions.
Shindler and Toman, (2003): As factors change over time acceptability judgments
can change as well. After action is taken, costs and consequences become apparent.
What seemed currently reasonable in the past may now be less so. Williams and
Patterson (1996): As conditions and information keep changing, management action
is needed to maintain acceptability. In a sense, the pot is constantly boiling and the
resulting stew must be monitored and fed frequently. In the past public acceptance
often has been viewed in a stimulus-response sense-Managers act and people judge.
94
Shindelr (2000): It is important for managers to identify and consider contextual
influences on acceptability. Winter et al. (2002) reported that SA judgments are
affected by unique combination of spatial, temporal, political, and social contexts
within which a proposed action will occur. Brandenburg and Carroll (1995):
Acceptability also varies with the scale of analysis as residents of adjacent areas can
interpret an action differently than those who live farther away and define the
project area differently.
Burnson (1992): There are good reasons for managers to pay heed to social
acceptability. First as a practical matter, few decisions in a democracy are simply a
matter of objective science about a specific practice or condition. Technical
information is critical in describing the alternatives, consequences, and implications
of decisions, but such decisions ultimately express a prescriptive judgment reflecting
the values of the decision maker. The extent to which these views reflect wider
public sentiment is problematic, yet decisions that fail to adequately account for
public values are unlikely to succeed, if they are ever implemented at all.
Shindler (2000): Accounting for SA reflects a normative perspective. The public has
the right to access the decisions of which they are the ultimate customers and
beneficiaries. To be most relevant managers should provide situation specific
information about what changes in conditions will look like, how soon they could
occur, how will they alter the character of the affected area and how they might
affect the surrounding community.
Bruce Shindler & Mark W. Brunson et al (2004): Public judgments about the
acceptability or unacceptability of management practices, policies, and conditions
are never absolute or final but only provisional. Regardless of the provisional,
95
idiosyncratic nature of social acceptability judgments they are still subject to
structure and critical thinking.
2.4 Literature Gap
The intensive review of literature reveals that there have been different studies on
Organization Culture, Organization Performance and Social Acceptability. Although
most of the Social Acceptability studies are found in the field of ecological studies it
is seen that there is no dearth for studies on Organization Culture and Organizational
Performance related to the area of higher education. There have been a few
references in researches that Organizational Culture and Organizational Performance
lead to customer satisfaction but it is very rare to come across studies which focus
their attention on Social Acceptability in higher education management.
Moreover there have been no studies found on the aspect social acceptability of
private self financing educational institutions. Therefore the intention of the
researcher is to find out how far the Organizational Culture and Organizational
Performance lead to the social acceptability of educational institutions especially
those which belong to category of Private Self Financing Engineering Colleges in
selected states of South India.
CHAPTER 3
OBJECTIVES AND RESEARCH METHODOLOGY
Research Methodology is a blue print of the Study conducted. The purpose of this
chapter is to focus on the methodology of the study and the process and methods
according to which the research was executed. The outline of this chapter includes
the statement of the research problem, the Objectives of the Study, Hypothesis to be
96
tested, the type of Research Design and related methodology i.e. tools and
procedures which included the population of the study, sampling procedure and
sample size, conceptualization of the main concepts, data collection techniques and
data analysis techniques of the study.
3.1 Statement of the Problem
In the year 2001 Govt. of Kerala allowed the private sector to start education
institutions in the Higher Education Sector in the State of Kerala. The Then Chief
Minister A. K. Antony's famous statement: 'two self financing Colleges for one
Govt. College' was explaining the role of private self financing colleges in the state
with 50 per cent of admissions to the management and 50 percent to the State Govt.
With this understanding the private sector predominantly the minority communities
and private parties entered into the field of Higher Education. But later a verdict by
the Kerala High Court in line with the Supreme Court verdict in favour of the
minority rights, distorted the whole scenario, as and when the minority communities
withdrew for their constitutional rights from whatever they had pledged till then.
The unaided specially minority W.P. (C) No.17873/2006 etc. - 23 -
institutions were to have autonomy in matters of
admissions, right to determine their fee structure and exemption
from any Government quotas; the Minorities were to be allowed
to admit students of their choice in accordance with St. Stephen's
case i.e. 50% for management and 50% for
Government. (Pushpagiri Medical Society vs State Of Kerala on 4
January, 2007)
97
From then the discussions on Self Financing Education System till today is a matter
of great contention in the State of Kerala. Therefore the Study would intend to look
at measuring the Social Acceptability of Private Self Financing Educational
Institutions with reference to Engineering Colleges and to see how far the factors of
organization culture and organizational performance create an impact on social
acceptability.
3.2 Utility of the Study
The present study would bring greater nuances in the study of Self Financing
Education System in South India, by understanding the relationship of
Organizational Culture and Organizational Performance on Social Acceptability. It
would help to develop a thematic model of the level relationship of organization
culture, organization performance and social acceptability on Private Self Financing
Higher Educational institutions with reference to Engineering Colleges in Selected
Cities of Kerala and Karnataka. In additions to those cited (1) It would help the
researcher to identify effect of organization culture and performance on social
acceptability of Private Self Financing Higher Educational institutions w.r.t.
Engineering Colleges in Selected Cities of Kerala and Karnataka (2). the study
would also reveal the level of social acceptability of Private Self Financing Higher
Educational institutions with reference to Engineering Colleges in Selected Cities of
Kerala and Karnataka and (3). It would guide the management of Private Self
Financing Higher Educational institutions w.r.t Engineering Colleges, in their
decision making to maintain or improve upon their organization culture and
organization performance and thus to gain better social acceptability.
3.3 Scope for Future Research
98
The present study is expected to open up avenues for further research on factors
other than organization culture and organization performance which affect social
acceptability of Private Self Financing Higher Educational institutions of
Engineering Colleges in South India. The study could lead to further research on the
political, technological and economical aspects that might play a role in the social
acceptability of the Private Self Financing Higher Educational institutions in India.
As the study analyses the factors of organization culture and organization
performance and social acceptability in a limited area of self financing Engineering
Colleges, it could open room to expand the study in other branches of Higher
education system either in private or public sector.
3.4 Scope of the Study
This study attempts to understand the effect of organization culture and performance
on social acceptability of private self financing educational institutions, with special
reference to engineering colleges in selected cities of Kerala and Karnataka. Based
on the review of literature, the following research questions were developed to guide
the study.
1. What is the relationship between organization culture and social acceptability of
Private Self Financing Engineering Colleges in Selected Cities of Kerala and
Karnataka?
2. Does it imply to say that if organization culture is positive social acceptability
will be higher and vice versa?
3. What is the relationship between organization performance and social
acceptability of Private Self Financing Engineering Colleges in Selected Cities of
Kerala and Karnataka?
99
4. Does it imply to say that if organization performance is high social acceptability
will be higher and vice versa?
5. How do the organization culture and organization performance affect social
acceptability of Private Self Financing Engineering Colleges in Selected Cities of
Kerala and Karnataka?
6. Does it imply to say that if organization culture is positive and organization
performance is high social acceptability will be higher and vice versa?
7. What is the assessment level of these variables at different demographic factors
and location in Selected Cities of Kerala and Karnataka.
Based on the above research questions the following OBJECTIVES have been
formulated for the study.
100
3.5 STATEMENT OF THE RESEARCH OBJECTIVES
1. To study organizational culture of private self financing engineering
colleges in Kerala and Karnataka
2. To study organizational performance of private self financing engineering
colleges in Kerala and Karnataka
3. To study social acceptability of private self financing engineering colleges
in Kerala and Karnataka
4. To study the impact of organizational culture on social acceptability of
private self financing engineering colleges in Kerala and Karnataka
5. To study the impact of organizational performance on social acceptability
of private self financing engineering colleges in Kerala and Karnataka
6. To study the association between organizational culture, organizational
performance and social acceptability of private self financing engineering
colleges to various demographic factors (gender, family income& state of
origin etc) in Kerala and Karnataka
101
3.6 Hypothesis
H01: There is no significant difference in organization culture of private self
financing engineering colleges in Kerala and Karnataka
H11: There is significant difference in organization culture of private self
financing engineering colleges in Kerala and Karnataka
H02: There is no significant difference in organization performance of private
self financing engineering colleges in Kerala and Karnataka
H12: There is significant difference in Organization performance of private
self financing engineering Colleges in Kerala and Karnataka
H03: There is no significant difference in social acceptability of private self
financing engineering colleges among in Kerala and Karnataka
H13: There is significant difference in social acceptability of private self
financing engineering colleges in Kerala and Karnataka
H04: There is no impact of organization culture on social acceptability on
private self financing engineering colleges in Kerala and Karnataka
H14: There is impact of organization culture on social acceptability on
private self financing engineering colleges in Kerala and Karnataka
H05: There is no impact of organization performance on social acceptability
on private self financing engineering colleges in Kerala and Karnataka
H15: There is impact of organization performance on social acceptability on
private self financing engineering colleges in Kerala and Karnataka
H06: There is no association between organizational culture and demographic
factors on private self financing engineering colleges in Kerala and
Karnataka
102
H16: There is association between organizational culture and demographic
factors on private self financing engineering colleges in Kerala and
Karnataka
H07: There is no association between organizational performance and
demographic factors on private self financing engineering colleges in Kerala
and Karnataka
H17: There is association between organizational performance and
demographic factors on private self financing engineering colleges in Kerala
and Karnataka
H08: There is no association between social acceptability and demographic
factors on private self financing engineering colleges in Kerala and
Karnataka
H18: There is association between social acceptability and demographic
factors on private self financing engineering colleges in Kerala and
Karnataka
3.7 Research Methodology
This chapter outlines the research method used for this study, which includes data
collection, sample selection, type and contents of questionnaire, processing of data
and finally interpretation of the data. The study embraces both qualitative and
quantitative research approaches.
3.7.1 Descriptive Study:
103
The present study is a descriptive study. In this study there are two independent
variables: 1. Organizational Culture and 2. Organizational Performance. Social
Acceptability will be considered as the dependent variable in the study.
The Secondary Data are very important for the start of any research. It is with the
help, of secondary data any researcher can start framing the structure of the research.
Secondary data are collected from various available sources through desk research
including literature survey and referring e-libraries etc. Review of literature and
other available information from various published and unpublished reports,
Journals, books, newspapers etc (including databases like Ebsco, Pro-quest, India
Business Insight Databases and others).
3.7.2 Pilot Study
Pilot Study was conducted in two places namely Kochi and Mumbai to test the
reliability of the instruments. The study was conducted with a sample of 100
students, 60 faculties and 100 general public from eight Engineering Colleges in
Mumbai and 100 students, 30 faculties and 100 general public from 2 Engineering
Colleges in Kochi.
3.7.3 Primary Research
Data collection is done in two stages: in the first stage a pilot survey was conducted
to ascertain the research parameters and to test the validity and reliability of the
instruments used in the study. In the second stage the primary data was collected
using the instruments in the study. Instruments used were Questionnaires to three
categories of samples and an Interview Schedule to collect data from the heads of
the institutes.
104
3.7.4 Size and Design of Sample
The study was conducted in two states of South India, Karnataka and Kerala. The
sampling was based on stratified Random Sampling. The sample units are Students,
Faculties and Institution Heads of Private Self Financing Engineering Colleges in
Selected cities of Karnataka (Bangalore and Mysore) and Kerala (Trivandrum and
Kochi). Survey also was conducted among the general public who reside in the 4
major cities of selected two states in the study.
The Government of Kerala approved the entry of Private Sector in the arena of
Higher Education in the year 2003. From then onwards Private Self Financing
Higher Education Sector had been under a continued social, legal and political
conundrum in the state of Kerala. That is the specific reason for the choice of Kerala
as the area for the study. Karnataka as a neighboring state with large number of
Private Self Financing Engineering Colleges is taken as a state for comparison.
The four cities Bangalore, Mysore, Kochi and Trivandrum are chosen as the four
major cities of these two states under the study.
The study is focused on Self Financing Engineering colleges. In the Self Financing
System of educational System more number of institutions are found in Engineering
stream rather than Medical, Management and other allied institutions.
For reaching at the organizational culture, Faculties of Self Financing Engineering
colleges are taken as respondents, students for organizational performance and
General Public for Social Acceptability.
105
Sample Size
State Cities No. of
Colleges
Sample of
(colleges)
Sample of
(faculties)
Sample of
(Students)
Sample of
(Public)
Karnataka
Bangalor
e 72 18 250 600 200
Mysore 11 5 150 200 200
Kerala
TVM 20 8 150 400 200
Kochi 14 7 150 350 200
Total 117 38 700 1550 800
TOTAL SAMPLE SIZE 3050
Table no. 3. 1 Total Sample Size
3.7.5 Sample Size Justification
The sample size was finally fixed based on the statistical formula
wherein N= number of samples, Z=1.96 at 95% confidence level
E= Margin of Error, σ= Standard Deviation
Sample Size in the Study
Sample size for students:
Standard deviation calculated from pilot study in Mumbai = 25.20
106
In Kerala = 16.83
If Standard Deviation is taken as 20 approximately
Sample size = (1.96 * 20/ 1) ^2 = 1537 (1550)
Sample size for faculties:
Standard deviation calculated from pilot study in Mumbai = 13.14
In Kerala = 15.21
Sample size = (1.96 * 13/ 1) ^2 = 650 (700)
Sample size for Public
Standard deviation calculated from pilot study in Mumbai = 7.65
In Kerala = 8.12
If we take 8 approximately
Sample size = (1.96 * 8/ 1) ^2 = 246
For greater accuracy 800 (i.e. 200 from each cities is taken as sample size for
General public).
3.7.6 Instruments of Data Collection
There are three different questionnaires are used collecting data on for Organization
Culture, organisation performance and social acceptability. In the first part each
questionnaire contain
107
1. Nature and purpose of the work are explained
2. The assurance of complete secrecy of identity of respondents and
responses and
3. Demographical Information.
The Questionnaire for organization culture contains 37 questions which are
categorized under 7 items. The questionnaire for organization performance has 64
questions which are asked under 7 items and questionnaire for Social Acceptability
contains 19 questions asked under 5 items. The following table would present a
snapshot view of three questionnaires with the different item heads.
Organisational Culture Organisational
Performance
Social
Acceptability
1. Attitude towards Students 1. Infrastructure 1. Awareness
2. Teaching Skill 2. Library Facility 2. Trust and
Confidence
3. Placement Facility for
Students 3. Catering/Canteen Services 3. Value for money
4. Faculty Morale
4. Attitude towards Students 4. Quality of Service
5. Organizational Glue 5. Level of Goodwill 5. My willingness to
cooperate
6. Leadership Practices 6. Placement Facility
7. Professional Satisfaction 7. Institutional Strengths
Table no.3. 2 Explaining different items in the questionnaire
108
In addition to the questionnaire the researcher uses an interview schedule also to
collect data from the heads of various institutions which is presented below with the
heads used to collect information.
Interview Schedule for Institution Heads
Interview Schedule
Demographic Information
On the Organization
Academic Performance
Future Perspectives of Growth
Level of Placements
Total Seats for the programme
Major challenges faced by the Institution
Table no. 3. 3 Explaining different items in the interview Schedule
3.8 Data Processing
The data collected with help of the questionnaire was analyzed with the help of the
statistical package SPSS 20. The mean scores arrived would be put to various
statistical analysis using various statistical tools in order to test the research
hypothesis.
3.9 Limitations of the Study
1. The study was carried out with assumptions regarding time, study area and
sample size etc. 2. The study would have had greater accuracy if responseshad been
incorporated from the corporate on the performance and acceptability of educational
institutions. 3. Collecting the information from colleges especially from faculties
109
and students was one of the difficult tasks faced by the researcher. 4. The data those
were collected with the permission of the management might not be that impartial
and it would have affected the veracity of the data collected. 5. The restriction of the
research only to major cities is another important limitation of the study. 6. The
general public who, have provided data for the social acceptability aspect also varies
drastically with their experience with the self financing education systems.
110
CHAPTER 4
History of Higher Education in India
Higher education is not a recent phenomenon for India; it has had long historical
roots through which a modern system of education has been evolved. The
institutions of higher education are recognized as the most important agency of
social change involved in the human resource development of the country.
Education in India has always been valued more than mere considering it as a means
towards earning a good living. Right from pre-historic days, Education, especially
higher education has been given a predominant position in the Indian society.
Ancient India considered knowledge as the third eye that gives insight into all
affairs. Education was available in Gurukulas, Agrahars, Viharas and Madarasas,
throughout the country. The great universities flourished in India when most of the
western world was groping in the dark. Those were the halcyon days when India led
the world in scientific knowledge and philosophical speculations. Great scholar Max
Muller has narrated in his own words: Quote “If I were asked under what sky the
human mind has most fully developed some of its choicest gifts, has most deeply
pondered on the greatest problems of life, and has found solutions to some of them
which well deserve the attention of even those who have studied Plato and Kant, I
should point to India”. Unquote. Though the glimpses of the original Indian
education is still felt yet what it is today is the mix and match version of different
rules.
The nature of higher education in Ancient India was considered as religious. The
basic religions were Hinduism, Buddhism and Jainism. Religion-based education in
111
Ancient India had an outstanding role in creating, transforming and transmitting
knowledge to the people in society. In Ancient India, there were two broad trends in
educational systems - Brahminical education and Buddhist education. (Ghosh 2001,
pp. 12-14). The socio-historical journey of higher education has been started with an
ancient system of education in the Vedic period (Brahminical Age). In the ancient
period, there were two types of educational system, viz the Brahminical and the
Buddhist systems of education. The Brahminical system of education was regulated
by religious values while the Buddhist form of education was “secular” in nature.
However, a marked differentiation occurred in the educational system with the
arrival of the British educational system. The indigenous system of education
received a severe setback as the British system created a new class which served the
British rulers.
Presently, the Indian higher education system is the largest in the world in terms of
the number of institutions. The Knowledge Commission recently advocated the need
for expansion of Universities and Colleges in India and it is now estimated that,
despite having the largest number of higher education institutions, India needs at
least 3,000 more universities each with the capacity to enroll not less than 10,000
students to meet the increasing demand for higher learning (Bhargava 2006).
4.1 Ancient History of Education in India: Brahminical Education (Vedic
Period)
Education in ancient India was highly advanced as evident from the centers of
learning that existed in the Buddhist monasteries of the 7th century BC up to the 3rd
century AD Nalanda (Perkin, 2006). In these centers, gathering of scholars-
gurukula- used to be engaged in intellectual debates-parishads- in residential
campuses. A few of these centers were large and had several faculties. Historians
112
speculate that these centers had a remarkable resemblance to the European medieval
universities that came up much later. The ancient education system in India slowly
got extinguished following invasions and disorder in the country.
Brahminical education developed in the Vedic period (Jha 1991, p.1). Rigvedic
education was concerned with an attempt to preserve contemporary religious texts
through oral transmission. The Rig-Vedic educational institutions consisted of small
domestic schools run by a teacher (rishi) who admitted pupils for instructions in the
literature in its possession. Women were admitted to full religious rites and
educational facilities. In fact, women enjoyed equal status with men in all spheres of
education during the Rig-Vedic period. Firstly, there was the usual system under
which the teacher, as a settled householder, admitted to his instruction pupils of a
tender age. These pupils left their home for study after the Upanayana or initiation
ceremony. Secondly, debating circles and parishads were other types of institutions
where students discussed various aspects of knowledge. The third type of institution
was represented by conferences summoned by kings in which the representatives of
various schools participated.
The later Vedic period witnessed the crystallization of the varna system which was
monopolized by the twice born castes in general and by Brahmans in particular.
Women still managed to have same influence in the sphere of education but they
were increasingly relegated to the background. In this period, as Jha (1991, p. 1)
points out, the number of types of priests increased from seven to sixteen. Higher
education was subservient to the requirements of priesthood and ritualistic religion.
The Post-Vedic Early classical Period (600-300B.C.) saw the elaboration of rituals
related to education. For instance, the pupils first introduction to education was
made by the performance of a ceremony called Vidyarambha (Jha, 1991 p.2].
113
Theoretically, all the twice-born castes were allowed to receive education but, in
practice, it was monopolized by the Brahmins (Jha, 1991 p.3). Arthashastra (400-
300B.C.) details that the studentship of a prince which should continue only up to
sixteen years at which age he must marry (Shamasatry, 1929). During this short
period, he had to acquire the knowledge of religion, philosophy, agriculture, trade
and statecraft. The Sushruta Samihita (1973) also provides details information about
medical education.
The education system which was evolved first in ancient India is known as the
Vedic Educational System since the ancient system of education were based on the
Vedas Vedic Educational System. The education system of Vedic period has unique
characteristics and qualities which were not found in the ancient education system of
any other country of the world. According to Dr. F. E. Key, ‘To achieve their aim
not only did Brahmans develop a system of education which, survived even in the
events of the crumbling of empires and the changes of society, but they, also through
all those thousands of years, kept a glow of torch of higher learning’.
4.1.1 Fundamentals of Vedic Educational System
The ancient education system has been a source of inspiration to all educational
systems of the world. The predominant facets of our ancient system relate to
admission policies (Upnayan), monitorial system, low teacher pupil ratio, healthy
teaching surroundings, free schooling and college education, sympathetic treatment,
role of punishment in discipline, regulation governing student life.
1. Developing the wholesome personality:
114
The primary aim of any system of education should be development of a whole
some personality. The Brahmanic system of education stood on former grounds of
lofty ideals because its primary aim was development of personality and character.
2. Making formal and Informal Educations Responsible:
Imparting and receiving of education was as sacred as anything can be, for example,
education started and ended with certain prescribed religious rituals like Upnayan
and Samvartan. The disciple was to devote himself whole heartedly to the cause of
learning while he remained with his teacher. Not every boy was required to enter
studentship it was still a custom to receive education at the hands of his father.
3. Starting Academic sessions solemnly:
In most cases the boy went to a teacher for studentship. The maximum age of
entrance into school was different for different castes. The period of schooling was
long, at least 12 years for one Veda. The academic sessions started with a special
ceremony ―upkarman‘ on the Guru Purnima (Full month of Shravana) and as
solemnly closed on Rohini (Fullmoon month of pausha) with utsarjan‘.
4. Adjusting School Hours:
The school in the Ancient Education System, lasted for 7 to 8 hours a day. In fair
weather classes were held in the open under shady groves. In the rainy season
schools ran in a set of apartment. Temple colleges of the past had been of great
renown for having spacious buildings for classroom, hostels and residential quarters
for teachers.
5. Close Contact:
Never in the history of education can be found such a close contact between the
teacher and the taught. The teacher was the spiritual father, he was to nurse, when
the pupil fell sick, he was to feed, clothe and teach his student as he fed, clothed and
115
taught his son. The student also regarded the teachers as he regarded his parents,
king & God.
6. Emphasizing Discipline:
The student had to observe strict regulations. Instruction was important, but was
even more significant than teaching was discipline – discipline inculcated through
strict obedience to laws and regulations of student life, discipline that was rooted in
morality and religion
7. Low Teacher pupil Ratio:
In all schools and colleges the pupil – teacher ratio was too low. Individual attention
was maximum. The number of students in a school was kept very small.
8. Respecting Childs Personality:
Punishment had practically no place in the school system. Pupils received very
empathetic, treatment from their teachers. Their personality was respected. Teachers
were required to use sweet and gentle speech in dealing with pupil.
9. Providing Free Education
Education was free. There was no outside agency could interfere in the matters of
education. There was perfect autonomy. No external authority no external
beneficiary, no politics was permitted to enter the school or college system. A
student had to pay nothing in return for education he received in a Gurukul or
Ashram.
4.1.2. Salient Features of Vedic Educational System
Ancient Indian education was primarily the education of the Vedas. The source
springs of education were Brahmans, Upanishads and Dharma Sutras. Amar Kosha,
the writings of Aryabhatta, Panini, Katyayana, Kautilya, Patanjali, the medical
treatises of Charaka and Susruta were other elements of Brahmanic literature. The
116
Brahmanic education has been a source of inspiration for determining educational
aims and objectives to future generations. Dr. A. S. Altekar says that the Brahmanic
education aimed at Infusion of a spirit of piety and religiousness, formation of
character, development of personality, inculcation of civil and social sense,
promotion of social efficacy, & preservation and spread of national culture.
1. Infusion of Spiritual & Religious Values:
The primary aim of ancient education was instilling into the minds, of pupils a spirit
of being pious and religious for glory of God and good of man. The pursuit of
knowledge was a pursuit of religious values. It was believed that a keener
appreciation of spiritual values could be fostered only through a strict observance if
religious rites.
2. Character Development
In no period of the History of India, was so much stress laid on character building as
in the Vedic period Vyas Samhita states, ―The result of education is good character
and good behaviour. Moral excellence could come only through practicing moral
values.
3. Development of Civic Responsibilities and Social Values:
The inculcation of civic virtues and social values was an equally important objective
of education in India. The Brahmachari after his education in the Gurukulas went
back to the society to serve the rich and the poor, to relieve the diseased and the
distressed.
4. Personality Development:
117
The qualities of self-esteem, self confidence, self restraint and self respect were the
personality traits that the educator tried to inculcate in his pupils through example.
5. Preserving and Diffusing National Culture:
The ancient Indian education system was also successful in preserving and
spreading its culture and literature even without the help of art of writing it was only
because of the destruction of temples and monasteries by invaders that literature was
lost. The cultural unity that exists even today in the vast- sub continent in due to the
successful preservation and spread of culture and the credit goes to Ancient
Education System.
4.1.3. Acceptable features of Education of Vedic period for modern Education.
There is a wide gap of Education between Ancient Indian Education and modern
Indian Education. Still there are several elements of ancient education which can
find room in modern education both in theory and practice.
a. Idealism
We are living in modern age but we feel proud of the civilization and culture of our
ancestors inherited to us. Even now we give importance to religion, God and desire
less deeds. We give more preference to character, spiritualism, philosophy rather
than wealth, materialism and science. The present world gives reverence to wealth,
power violence and diplomacy whereas we rely in truth, non-violence and
mortification. We still believe in idealism and wish to lead an ideal life.
b. Discipline and Teacher – Pupil Relationship
118
The sense of discipline and the cordial relation between teacher and pupil of Vedic
age is well known to the world today we see the educational environment has
become so venomous due to indiscipline that is has become an uncountable
problem. The sense of discipline can be developed if teacher pupil relationship can
be made to adopt the ideal relationship between teacher and pupil.
c. Subject of studies
The study of Sanskrit language and Sanskrit literature in neglected to a greater
extent. It is this literature which is enriched by the sense of peace, humanity,
universal brotherhood which should be vital part of our curriculum.
d. Teaching Method
In ancient period Shravan or Listening. Manan or meditation and Nididhyaana or
realization and experience, question and answers, discourse, lecture discussion and
debate methods were prevalent.
e. Simple Life of Students
In Vedic age students used to lead a simple and sober life. In order to make their life
healthy and smooth a simple life system was necessary was the common logic of the
time.
f. All Round Development of Child
The ancient education never neglected physical development although the main
emphasis was given the intellectual and spiritual development. For this a peaceful,
calm, clean, attractive and natural environment far away from town and villages was
provided to students.
119
g. Equality of Opportunity.
The educator was democratic in his approach in the field of education. All students
rich or poor, prince and common were treated alike.
h. Education for Self sufficiency
The ancient schools followed the principle of education for self sufficiency. The
school was small integrated community self sufficient in every way. The students
used to grow their food products, tended cows, collected firewood‘s and erected
cottages themselves under the guidance of teacher.
i. Free and Universalization of education
Education was free and universal. The fee, if any, was to be paid, after attaining
education from the earnings of the young man who got education, in the form of
‘Guru Dakshina‘. During education the boarding and lodging was free for almost all
these students.
4. 2 Buddhist Education
The nature of Buddhist education was religious as well as secular. The most
important aspect of Buddhist education was that it remained open to all persons
irrespective of castes except slaves, army-deserters, the disabled and the sick (Jha,
1991 p.3). It grew out of the teachings of the Buddha as classified as Vinaya
(monolithic discipline), Sutta (group discourse) and Abhidhamma (works of
doctrine) (Ghosh, 2001 p. 54). Buddhist education was centered in monasteries and
was in the hands of the monks. In some ways, aspects of these educational
institutions can be compared with modern universities.
120
The curriculum of Buddhist education included what are termed Vinaya, Sutta or
Suttanta, and Abhidhamma, together with Suttas and Sutta Vibhanya which were
taught orally (Ghosh, 2001 p. 58). A Buddhist text includes numerous disciplines or
subjects such as the Lokayata system, Astrology, Witchcraft, the four Vedas and
Vedangas, Astronomy, interpretation of omens, the philosophical system of
Samkhya, Yoga, Nyaya and Vaisheshika, Music, Medicine, Magic, the art of War,
poetry, and a number of arts and crafts as well as Arithmetic. In this system of
education, the Viharas functioned as residential schools where various groups of
students and teacher stayed together. Taxila was the most famous Buddhist seat of
higher learning. It was famous especially for the school of Medicine, Law and
Military Science which, by midway through the 6th century had acquired a
reputation as a great centre of learning, attracting scholars from distant parts of India
(Dongerkery, 1997 pp. 1-2). During the reign of Alexander the Great the fame of its
philosophers had spread as far as Greece. The students‟ choice of subjects was not
restricted by their caste. For instance, a Brahmin could study Archery and a
Kshatriya could study the Vedas. Panini, the renowned Sanskrit Grammarian, and
Kautilya, the author of the Arthasastra, were reputed to have studied in Taxila which
flourished as a great educational centre until the middle of the 3rd Century A. D.
The universities of Nalanda, Vikramshila and Vallabhi were perhaps the most
important universities of ancient India. Nalanda University was an institution of
higher studies situated in Bihar and was known for Buddhist studies, attracting
students from China, Nepal, Tibet, and Korea, who went there to study valuable
Buddhist manuscripts. The University curriculum included a wide range of subjects
such as Brahminical and Buddhist, Sacred and Secular, Philosophical and Practical.
It is worth mentioning that the University was run democratically (Jha, 1991 p. 5).
121
In Ancient Indian Aryan society, the study of Vedas was forbidden for Sudras and
they learnt their professional knowledge in agriculture and animal husbandry,
spinning and weaving, fine arts and crafts though the expertise of their own families.
Buddhism came in the forefront as a challenge to Brahminism, possibly because it
offered a simple way to reach salvation. As a result, the Buddhist Viharas did not
possess the inherent vitality of the Vedic schools (Ghosh, 2001 p. 158).
However, the greatest contribution of ancient Indian education is its search for the
truth, for the knowledge of Atman (individual soul) and the Brahman (supreme
soul). As Ghosh (2001, p. 158) writes, “Such search still continues vigorously in the
world and often acquires the technical shape of a satellite around the earth and
beyond or the scientific treatise of a philosophical dimension as in Stephen Hawkins
'A Brief History of Times' or in 'Carl Sagan‟ s' popular series, 'Cosmos'”. Evidently,
India had a very rich tradition of higher education in Ancient times.
4.3 Higher Education in Mediaeval India (9th –Early 18th Century)
The Mediaeval era in the history of India signified a major phase of social and
cultural synthesis. In fact, the history of education in Mediaeval India reflects a part
of the wider study of the history of society, social history broadly interpreted with
politics, economics and religion. The mediaeval state in combination with the
various other agencies such as Sufism and Bhakti ideology played a crucial role in
the protracted process of integration and co-existence. Despite their diverse religions
and cultures, these agencies brought the people together through their common
experience in public as well as in private. Early Indian education and many of its
centers continued in the middle ages, the early Indian tradition of learning co-existed
with the newly instituted MADRASAH, making both continuity and change
important features of higher education during the period (Alam, 1991 p. 10).
122
4.3.1 The Madrasah as a System of Education
By the 11th Century A.D. Madrasahs or colleges had developed as the centers of
higher education and learning with a distinctly religious bias. They were primarily
theological institutions, providing instruction in language and other secular subjects
as a subsidiary activity, and were supported or aided by the government of the day.
The Madrasahs were generally attached to mosques in the same way as the Maktabs.
The courses of instruction in the Madrasahs included grammar, logic, rhetoric,
theology, metaphysics, literature, jurisprudence and science. Some of the Madrasahs
enjoyed the status of universities. The medium of instruction was Persian but Arabic
was obligatory for all Muslims. Other subjects were also taught such as Agriculture,
Accountancy, Astrology and Astronomy, History, Geography, Mathematics, Islamic
Law and Jurisprudence and Statecraft or the art of administration (Ghosh, 2001b, p.
22).
By the end of the fifteenth century, the Delhi Sultanate had established their own
kingdoms in the regions under their control (Alam, 1991 p. 17). The Mughal rulers
(1526-1857) showed a comparatively greater interest in higher education.
Zahiruddin Muhammad Babar, the founder of the Mughal Empire, was a scholar of
Arabic, Persian and Turkish, and established a Madrasah in the locality of Azizullah
in Jaunpur. Akbar‟ s reign (1556-1605) marks a new epoch for the system of
Madrasahs. The education of girls and women was not neglected in the Mughal
period. The fact that Gulbadan Begum, sister of Humayun, wrote the Humayun
Nama shows that there were learned women during this period (Dangerkery, 1967 p.
13).
123
4.3.2 History of Education: During the British Rule
The traditional systems of education both among the Hindus and the Muslims were
mostly religious and literary in character. They were largely based on ancient
religious and philosophical literature of Sanskrit, Arabic and Persian. In addition to
the Vedas and the Upanishads, the Hindu students specialized in subjects such as
Medicine, Surgery, Astronomy, Music, Dancing, Painting, Magic and the art of
warfare, while the Muslims studied, in addition to the Koran, Rhetoric, Logic, Law,
Euclid, Ptolemy’s Astronomy, other branches of natural Philosophy and works on
Metaphysics (Dongerkery, 1967 p. 21).
It is generally accepted that the current university system in India is a creation of the
British colonialist influence. The East India Company did not make any attempt to
impose a western system of education on its Indian subjects for a long time (Basu,
1991 p. 22). English Higher Education in India really began with the establishment
of a Hindu College in Calcutta in 1817, the first “Europeanized institution of higher
learning in the country. In fact, the present system of higher education in India has
its roots in Mount Stuart Elphinstone’s ‘minute’ of 1823 in which he pressed for the
establishment of schools for teaching English and the European Sciences.
Subsequently, Macaulay, in his ‘minute’ of 1835 stated that the objective of the
British government ought to be “the promotion of European literature and science
amongst the natives of India.” But from 1813 to 1835, there was continual
controversy between the orientalists and the western school. The orientalists had the
upper hand so no government support was available for English teaching (Power,
1995 p. 38) hence; it had to be undertaken by private enterprise.
Macaulay reflects the view that English education was necessary for the Indian
Higher education system. On the other hand, Mc Cully (1940) reported that Indians
124
increasingly demanded an English style of higher education because it provided
prestigious jobs in the British bureaucracy or in the growing commercial sector of
the economy. Hence, the British themselves were convinced that they needed a class
of educated Indians at the secondary level posts in the Government and to act as
intermediaries between the Raj and the Indian population. Similar views have been
expressed by Basu (1991, p. 22) - that English education was wanted by the Indian
urban elite, not only for employment and careers but also because it spread the
western secular education’s special role in the social and political regeneration of
India towards self-rule. The elite were the beneficiaries of this system and have had
a vested interest in its continuation.
The idea of establishing universities in India based on the model of the London
University (i.e. universities of the affiliating type), was first promoted in Sir Charles
Wood’s Dispatch of 1854 which has been described as the Magna Carta of English
education in India (Power, 1995 p. 38). It described the aim of education in India as
the diffusion of Arts, Science, Philosophy and Literature of Europe, and the study of
Indian Languages. These recommendations also included Law, Medicine and
Engineering and were followed by the establishment of universities at Calcutta,
Bombay and Madras in 1857 following the model of the University of London.
Both Macaulay’s Minute of 1835 and Wood’s Dispatch of 1854 laid down the basic
objectives for the development of English Education in India. Moreover, Curzon’s
University reform represents a climax in the official attitude against the spread of
higher education which had been developing since the mid 1850s. Curzon’s
Government was the first to apply a check to free enterprise in education. It
introduced a system of control which extended to all grades of institutions from
125
primary schools to universities (Mishra, 1961 p. 288). In fact, Curzon shifted the
emphasis from the education of few to that of the many.
Though the Indian Higher Education Structure can be traced back to Nalanda and
Takshashila Institutions, still “The foundation for modern education was laid by the
Britishers. They set up network of schools to impart western education in English
medium (Perkin, 2006). First such college to impart western education was founded
in 1818 at Serampore near Calcutta. Over the next forty years, many such colleges
were established in different parts of the country at Agra, Bombay, Madras, Nagpur,
Patna, Calcutta, and Nagapattinam. Its historical landmarks are McCauley’s Policy
of 1835 to promote European learning through English, Sir Charles Woods’
Dispatch of 1854 which for the first time recognized the need for mass education
with private and missionary help and gave up the policy of selective education
known as the ‘filtration theory’ and finally the first Indian Education Commission of
1882 which recommended the initiative of private agencies in the expansion of
education”.
An important step in the history of Indian education is marked by Sir Charles
Wood's epoch-making Dispatch of 1854, which led to (1) the creation of a separate
department for the administration of education in each province, (2) the founding of
the universities of Calcutta, Bombay, and Madras in 1857, and (3) the introduction
of a system of grants-in-aid. Even when the administration of India passed from the
East India Company into the hands of the British crown in 1858, Britain's secretary
of state for India confirmed the educational policy of Wood's Dispatch. The newly
established universities did not initially undertake any teaching responsibilities but
were merely examining bodies. Their expenses were confined to administration and
could be met from the fees paid by the candidates for their degrees and certificates.
126
The then existing 27 colleges were affiliated to these three universities. Later on
more universities were established. At the time of independence in 1947, there were
19 universities and several hundred affiliated colleges (CABE, 2005).
Although the establishment of the universities resulted in rapid expansion of college
education and the products of the new learning displayed keen scholarship, the value
of learning started decaying. In such circumstances it was ironic for the Indian
Education Commission of 1882 to declare, “The university degree has become an
accepted object of ambition, a passport to distinction in public services and in the
learned professions.”
The commission of 1882 made it very clear that the “elementary education of the
masses, its provision, extension and improvement requires strenuous efforts of the
state in a still larger measure than heretofore.” It also desired to check the wild race
for academic distinction and “to divert some part of the rapidly swelling stream of
students into channels of a more practical character.” Despite this warning, however,
alternative courses in commerce, agriculture, and technical subjects that were
offered in a limited number of selected schools did not prove popular. The educated
classes could not be diverted from their conventional path. The second half of the
19th century is, nonetheless, of great significance to the country because modern
India may indeed be said to be a creation of this period.
It brought about a renaissance by breaking down geographic barriers and bringing
different regions and long-separated Indian communities into close contact with one
another. The blind admiration for Western culture was gradually passing away, and
a new vision and reorientation in thought were coming about. A feeling of
dissatisfaction also developed toward the existing governmental and missionary
127
institutions. It was felt by some of the Indian patriots that the character of Indian
youths could be built by Indians themselves. This led to the establishment of a few
notable institutions aiming at imparting sound education to Indian youth on national
lines-institutions such as the Anglo-Mohammedan Oriental College in Aligarh
(1875), the D.A.V. College in Lahore (1886), and the Central Hindu College in
Varanasi (1898). The politically minded classes of the country had also come to
regard education as a national need. They were critical of the government's
educational policy and resented any innovation that might restrain the pace of
educational advance or diminish liberty.
India has an age old heritage of education but it was largely based on caste and
social status rather than being equally available to all. Traditional Hindu education
served the needs of the Brahmin families. Brahmin teachers would teach boys to
read and write. Under the Mughals, education was similarly elitist, favouring the
rich rather than those from high-caste backgrounds. These pre-existing elitist
tendencies were reinforced under British rule. British colonial rule brought with it,
the concept of a modern state, a modern economy and a modern education system.
By linking entrance and advancement in government service to academic education,
colonial rule contributed to the legacy of an education system while preserving the
position and prerogatives of the more privileged. In the early 1900s, for the first time
demand for technical and vocational training in education was raised by the Indian
National Congress.
In brief, higher education in colonial India remained concentrated in and around the
cities and towns and was more widespread among men than women and amongst the
higher castes. It would have been almost impossible to find a rural scheduled caste
128
or scheduled tribe woman studying in a college. There were serious inequalities in
the colonial system of higher education.
4.4 Higher Education in India: After Independence
India has been a major seat of learning for thousands of years. The present format of
Higher education in India was started in 1857 with the inception of universities in
the three presidency towns. At present, India possesses a highly developed higher
education system which offers facility of education and training in almost all aspects
of human’s creative and intellectual endeavors such as arts and humanities, natural,
mathematical and social sciences, engineering; medicine, dentistry, agriculture,
education, law, commerce and management, music and performing arts, national and
foreign languages, culture, communications etc.
Pandit. Jawahar Lal Nehru (the first prime minister of Independent India) envisaged
India as a secular democracy with a state-led command economy. Education for all
and industrial development were seen as crucial tools to achieve economic
prosperity and social equity. Following independence, school curricula were, thus,
imbued with the twin themes of inclusiveness and national pride. It is through the
first five year plan in 1950-51; India began its programme for providing free and
compulsory education to all children by transforming the elite oriented system of
school education inherited from the colonial rulers to a mass education programme.
The Indian Constitution resolves to provide quality education to all. In the effort to
fulfill educational needs of the country, specifically for the diverse societies and
cultures of the country the government has chalked out different educational
categories namely, Elementary Education, Secondary Education, Higher Education,
Adult Education, Technical and Vocational Education. Institutions of excellence in
129
higher education were formed with a view to provide subsidized quality higher
education to build a self reliant and modern India. Even at present these institutions
are recognized among the best in the world.
Higher education is said to be the basis of future innovation and progress.
Independent India inherited ownership of its system of higher education from the
colonialists, but the need for the reconstruction of education was felt long before
independence. However, it was only after independence that the national leadership
had an independent opportunity to tackle the problem. The nationalist sprit that had
brought about the independence of the country became the motivating force behind a
great number of changes that were initiated in the country. Nationalist leaders, faced
with the socio-economic reality of India, were all firm in the belief that education
had a revolutionary task to fulfill. The Radhakrishnan Commission of 1948
envisaged that as follows: ‘The academic problem has assumed new shape; we have
now a wider conception of the duties and responsibility of universities. They have to
provide leadership in politics and administration, the professions, industry and
commerce. They have to meet the increasing demand for every type of higher
education, literacy and scientific, technical and professional (knowledge). They must
enable the country to attain, in as short a time as possible, freedom from want
disease and ignorance, by the application and development of scientific and
technical knowledge (Government of India (1950), Report of University Education
Commission)’.
As Chair of the Commission, Dr. S. Radhakrishnan recommended the reconstruction
of university education as essential to meet the demand for scientific, technical and
other human power needed for the socio-economic development of the country. For
this, the Commission has gave the following recommendations (Ghosh, 2000a p.
130
178-179): Covering all aspects of university education in India, they emphasized the
10+2 structure at the pre-university stage, correction of the “extreme specialization”
in the courses, development of research to advance the frontiers of knowledge and of
professional education in agriculture, commerce, law, medicine, education, science
and technology including certain new areas such as business and public
administration and industrial relations and suggested reform of the examination
system by assessment of the student’s work throughout the years and introduction of
courses on the central problems of the philosophy of religion. They also emphasized
the importance of student’s welfare by means of scholarships and stipends, hostel,
library and medical facilities and suggested that they should be familiar with three
languages--regional, federal and English at the university stage and that English be
replaced as early as possible by an Indian language. The Commission was also in
favour of the idea of setting up rural universities to meet the need of rural
reconstruction in industry, agriculture and various walks of life. The universities
should be constituted as autonomous bodies to meet the new responsibilities,
(Central) University Grants Commission be established for allocating grants, and
finally, university education be placed in the concurrent list.
The report was considered by the Central Advisory Board of Education (CABE) in
1950 and most of the recommendations were accepted, although recommendations
relating to the inclusion of Education in the concurrent list were rejected. The
University Grants Commission came into being and assumed a most important role
in the co-coordination and development of universities in India (Ghosh, 1983 p. 35).
Right from the time of the first five-year plan, major changes prompted reform of
the university system. The third five-year plan observed that: “Education is the most
important single factor in achieving rapid development and technological progress
131
and in creating a new social order based on values of freedom, social justice and
equal opportunities” (The Third Five Year Plan, Planning Commission, Government
of India, New Delhi, 1961, p. 573).
There have been various commissions and committees appointed by the Government
of India and the University Grants Commission from time to time. The Kothari
Commission was one of them.
4.4.1 Kothari Commission (1964-66)
The most important document on Education in India is the report of the Education
Commission under the chairmanship of Dr. D. S. Kothari, then Chairman,
University Grants Commission, to advise the Government of India ;”on the national
pattern of education and on the general principles and policies for the development
of education at all stages and in all aspects.”[Report of The Education Commission
(1964-66): Education and National Development, Government of India, New Delhi,
Part I and Part II. 1985]. The report made very important recommendations
covering all aspects for the future development of national education. The Report
emphasized the need for a built-in flexibility in the system of education, and for the
necessity of education to be science-based and coherent with Indian culture and
values (Power, 1995 p. 39). It also visualized education as an instrument for the
nation’s progress, security and welfare.
The Commission recommended special measures for major universities to ensure
quality of research development of other universities and affiliated colleges,
improvement in teaching and evaluation by re-organization of courses and
examinations, opportunities for part-time education, and special attention to
women’s education. As far as the implementation of the Kothari Commission was
concerned, the recommendations were discussed in both the Houses of Parliament
132
and there emerged the first national policy in independent India in the form of a
resolution in July 1968 (Ghosh, 2000a pp. 183-184). The recommendations of the
Kothari Commission were progressively diluted at every stage of the discussions,
yet the policy that was born out of them remained the basic framework for all
governmental action despite an attempt by the Janata Government to revise it in
1979. The new education policy appeared in May 1986.
4.4.2 The National Policy on Education 1986
The policy aims at not only developing human power for serving the economy but
also at developing crucial values (Power, 1995 p. 40). The policy envisages
education for equality and an understanding of the diverse socio-cultural systems of
the people while motivating the younger generations towards international co-
operation and peaceful co-existence (Ghosh, 2000a p. 184). As regards higher
education, the documentation informing the policy expressed great concern
regarding the conditions of the colleges and universities so the policy emphasizes
consolidation and expansion of facilities. In fact the policy indicates a major thrust
in higher education (Mukhopadhyay, 1999 pp. 54-55) incorporating:
a. expansion of higher education b. improvement of the quality of higher education,
and c. increased relevance and job orientation in higher education.
It is evident that much thought has been given to identifying the problems faced by
higher education in India and to formulating policies and programs for their
mitigation. However, India has not been very successful in implementing the
reforms. Valiathan (1993) expressed regret that knowing what was needed but not
committing to achieving it would cast shadow on India’s national Integrity.
4.5 Growth of Higher Education till 1980
133
Till about 1980, the growth of higher education was largely confined to arts, science
and commerce. The government not only supported higher education by setting up
universities and colleges, but also took over the responsibility of running the
institutions set up through private sector. These came to be known as grant-in-aid
(GIA) institutions or private aided institutions. In such institutions, though the
private sector financed a major part of the capital costs, public subsidies were
provided to them to meet a part of the recurrent costs and occasionally for some
capital works. Public funding was accompanied with considerable regulation of
private institutions by the government (World Bank, 2003). Over the years, several
private institutions had set high academic standards for themselves. With
government regulation, their autonomy was compromised and standards went down.
In effect, this led to the de facto nationalization of private higher education and gave
serious blow to the community-led private initiatives in highereducation in the
country.
4.6 Growth of Higher Education from 1980 to 2000
In the 1980s, there was an unparalleled demand for quality higher education
appropriate to the needs of business and industry, putting substantial stress on
governmental resources. Also, there was a substantial increase in the population in
the middle and higher income groups, which could afford to pay higher tuition fees.
This made the non-subsidized higher education a viable enterprise. Faced with such
a situation, the state was left with no alternative but to allow the entry of private
enterprise in the area of higher education.
Economic reforms in early 1990s saw the middle class grow bigger, younger and
richer. These reforms also saw a rise in entrepreneurship in the country. The rising
demand of higher education from the growing middle classes and the growing
134
culture of entrepreneurship together accelerated the pace of growth of private higher
education in the country. During this period, very few universities and colleges were
set up by the government sector and fewer still were also brought within the ambit
of government funding. In a way, this period was marked the near withdrawal of the
government from taking over of additional responsibility for higher education in the
country.
4.7 Growth of Higher Education from 2000 onwards
Till the late 1990s, the expansion of higher education largely took place through
affiliated colleges. By then, many promoters of private unaided colleges began to
realize that the regulatory mechanisms of the affiliating university and state
governments were inhibiting their growth and did not allow them to fully exploit
their market potential. Such institutions explored the possibilities of ridging out of
the control of the state governments and the affiliating universities.
Year Universities Colleges Total Enrollment
(Lakhs)
1947-48 20 496 516 2
1950-51 28 578 606 2
1960-61 45 1819 1864 6
1970-71 93 3277 3370 20
1980-81 123 4738 4861 28
1990-91 185 5748 5932 44
2000-01 266 11,146 11,492 88
2010-11 610 33,023 33,633 160
The Table No: 4.1 Totalnumber Universities, colleges and enrollment from 1947
to 2011 in India (UGC data)
Some of the institutions took the deemed to be university route to get the degree
granting owners. Though, universities in the country are either set up by an Act of
135
Parliament or State Legislature, however, certain institutions are also given the
status of a deemed to be university in terms of section 3 of the UGC Act, 1956.
Over the last five years, there has been sudden jump in the number of deemed
universities. In the early years, this privilege was extended only to the government /
government aided institutions. Manipal Academy for Higher Education (MAHE) – a
pioneer in private higher education became the first totally self-financed institution
to be declared as a deemed to be university in 1976. After 2000, when the provision
for conferring the deemed to be university status to a de novo institution was
introduced, there was sudden spurt in the growth of deemed to be universities in the
private sector. Between 2000 and 2005, 26 private-sponsored institutions got the
deemed university status. Though the deemed to be universities do not have
affiliating powers, many of them have a number of campuses spread throughout the
country. In this way, the new entities were able to wriggle out of the oversight
mechanism of the affiliating universities. They were also able to overcome the
service area restrictions associated with an affiliating university. This intensified the
competition in higher education in the country.
136
The Diagram no:4.1 The growth in the number of universities in India from
1970-71 to 2011-12
Meanwhile, many state governments realized that education was on the concurrent
list of the Constitution and that they could establish private universities through
legislation. By early 2005, seven private universities set up in different states were
recognized by the UGC. This also led to a new state - Chhattisgarh in central India
indulging in an astounding misadventure by allowing the setting up of 97 private
universities with all India jurisdictions in the year 2002. This was struck down by
the Supreme Court in February 2005 leaving the fate of nearly fifty thousand
students registered in these universities hung in balance; the future of those who
acquired degrees from these so called universities remains uncertain.
103 133 190
256
387
659
0
100
200
300
400
500
600
700
1970-71 1980-81 1990-91 2000-01 2006-07 2011-12
Number of Universities in India
137
The Diagram no:4. 2 The growth percentage in the number of colleges in India
from 1971-71 to 2011-12
The higher education system in India grew rapidly after independence. By 1980,
there were 133 universities and 4738 colleges in the country enrolling around five
per cent of the eligible age group in higher education. Today, while in terms of
enrolment, India is the third largest higher education system in the world (after
China and the USA); with 33,682 institutions (659 universities and 33023 colleges)
is the largest higher education system in the world in terms of number of
institutions. The number of institutions more than four times the number of
institutions both in the United States and entire Europe. Higher education in China
having the highest enrolment in the world (nearly 29 million)
3.604 4.722 7.346
12.806
21.17
33.023
0
5
10
15
20
25
30
35
1970-71 1980-81 1990-91 2000-01 2006-07 2011-12
Growth in the number of Colleges
138
The Diagram no: 4.3The number of student enrollment in India from 1971-71 to
2011-12
is organized in only about 2,500 institutions. Whereas, the average enrolment in a
higher education institution in India is only about 500-600 students, a higher
education
The Diagram no: 4.4The number of student enrollment in India from 1971-71 to
2011-12 in percentage.
Institution in the United States and Europe would have 3000-4000 students and in
China this would be about 8000-9000 students. This makes system of higher
2 2.8 4.9
8.4
16.6
25.9
0
5
10
15
20
25
30
1970-71 1980-81 1990-91 2000-01 2006-07 2011-12
Student Enrollment in India (in Millions)
5 6
10
12.3
17.9
0
2
4
6
8
10
12
14
16
18
20
1979-80 1989-90 1999-00 2006-07 2011-12
Growth of Enrollment over the years in %
139
education in India as a highly fragmented system that is far more difficult to manage
than any other system of higher education in world.
The Diagram no: 4.5 The number of student enrollment in a comparison between
China and USA with India
2.7 .1 Different Five Year Plans and Higher Education in India at a Glance
Sixth Five Year Plan (1980—1985)
Major Objective: Quality improvement: Improvement of standards and
regulation of admission, Restructuring of courses for practical orientation
and greater relevance
Planned expenditure on higher education (INR billion): 5.3
Annual enrollment growth (1981-85): 4%
Seventh Five Year Plan (1985—1990)
Major Objective: Focus on research and academic development: Creation of
research facilities and centers of excellence, Encouragement of academic
mobility and cross-fertilization of ideas, restructuring courses offered at first
degree level to increase employability
25.9
19.1
29.3
0
5
10
15
20
25
30
35
India USA China
India ranks second in terms of Enrollment of
Students
140
Planned expenditure on higher education (INR billion): 12.0
Annual enrollment growth (1985-90): 6.2
Eight Five Year Plan (1992—1997)
Major Objective: Funding for developing new departments/courses:
strengthening of existing postgraduate departments in terms of laboratories,
workshops and library services, Opening of new specialized courses and
departments and doing away with outdated ones
Planned expenditure on higher education (INR billion): 10.6
Annual enrollment growth (1992-97): 5.4%
Ninth Five Year Plan (1997-02)
Major Objective: Adapting to social and economic changes:Encouraging
relevant courses with a professional focus to enable career development,
Addressing the education needs of under-represented social groups,
Generating revenue through increased university-industry linkages
Planned expenditure on higher education (INR billion): 25.0
Annual enrollment growth (1997-02): 5.6%
Tenth Five Year Plan (2002-07)
Major Objective: Improving quality and relevance of higher education:
Strengthening of research institutions as well as open and distance
education system, Knowledge and use of new information and
communication technology, Focus on quality, evaluation and
accreditation of higher education
Planned expenditure on higher education (INR billion): 96.0
Annual enrollment growth (2002-07):6.6%
Eleventh Five Year Plan (2007-12)
141
Major Objective: Inclusive growth of higher education: Expanding HEIs
to eliminate regional imbalances, Making higher education accessible to
all socio-economic strata of the society, Improving quality of education
by promoting research, quality assurance systems and faculty and
infrastructure development, Includes expenditure on technical and
vocational education
During the Eleventh Plan, significant progress was made in the areas of
expansion, inclusion, quality improvement and increased private
participation.
Excellence
Availability of suitable number of institutions across regions Equal opportunity for
all sections of society to participate in higher education
Provision of suitable infrastructure, trained faculty and effective pedagogy in higher
education institutions
Improvement in GER
During the Eleventh Plan period, India's GER crossed 15%, taking the country’s
higher education from an “elite” (GER of less than 15%) to a “mass” (15%-50%
GER) system
Increase in number of institutes
The number of HEIs grew by 9.6% per annum from 29,384 to 46,430 during this
142
period
Central institutions witnessed a historic growth (with a CAGR of 11.8%), with 51
new institutions being set up during the Plan period
During this period, 7 new IIMs, 8 IITs and 10 NITs were established
Increasing private sector participation
The number of private institutions grew at a CAGR of 10% during the Plan period.
This growth included the establishment of 98 state private universities, 17 private
deemed universities, 7,818 private colleges and 3,581 private diploma institutions.
Additional opportunities for minorities / low-income families
The Government increased the intake capacity of central institutions to provide 27%
reservation for OBCs without affecting the number of general seats
Merit-cum-means scholarships were started in 2008—09 for students who are 80th
percentile and above from different school boards and have family incomes of less
than INR0.45 million per annum
Since 2009—10, the Central government has begun providing full interest subsidy
loans during the moratorium period to students whose annual family income is less
than INR0.45 million
Support for backward areas
Out of the proposed 374, 45 model colleges were established in low enrollment
districts
Overcoming faculty shortages
143
The retirement age of faculty was increased to 65 years with provision for further
extension to 70 years in special cases.
A faculty re-charge scheme (to attract young faculty) and an initiative to enlist
professionals from outside academic institutions (as adjunct faculty or scholars-in-
residence) were also initiated
Several fellowship and scholarship schemes for M.Phil and PhD were instituted
Reforms in curriculum
Some states adopted the semester system. E.g. University of Delhi
Infrastructure development
The National Mission on Education through ICT (NME-ICT) was launched to
provide enhanced connectivity, content and access devices to educational institutes.
Under this initiative, 392 universities and 18,374 colleges were provided with
broadband connectivity. The development of virtual reality labs and initiatives for
the creation of e-content were also taken up. In addition, a low-cost computing-cum-
access device, Akash, was developed. The programme received an investment of
INR14.72 billion
The first phase of the three-phase “Technical Education Quality Improvement
Programme (TEQIP),” initiated in 2002– 03 with the support of the World Bank
support, ended in 2008–09, with an investment of INR13.78 billion. TEQIP helps to
improve the quality of technical education in selected engineering institutions by
providing input on modernization of laboratories, libraries, faculty and staff
development, research, networking between institutions and service to community.
The programme covered 127 engineering institutions during the Plan period.
144
Strengthening research and development activity
In order to promote interdisciplinary teaching and research, 417 departments of
universities/colleges were provided financial support (of up to INR6 million per
institution)
The UGC undertook a new initiative during the Plan period to promote Basic
Scientific Research (BSR. This included grants to departments and colleges to
improve their basic infrastructure, fellowships for doctoral and post-doctoral work,
faculty recharge schemes, networking centers and promotion of research at the
undergraduate level Several bills were introduced during the Plan period to improve
the quality and transparency in higher education.
Planned expenditure on higher education (INR billion): 849.4
Annual enrollment growth(2007-12) : 9.3%
The Twelfth Five Year plan
The 12th Five Year Plan would focus on Expansion, inclusion and quality to achieve
the national goals in education. During the Plan period, a target enrollment of 10
mn additional seats equivalent to 3 mn seats for each age cohort is aimed at in the
higher education system. This would significantly increase the GER bringing it
broadly in line with the global average. There is unanimous agreement of the fact
that the private sector needs to be involved to complement and supplement the
efforts of the Government In the 12th plan, the Planning Commission’s would focus
on instilling “inclusive growth” in making headway.
145
The emergence of India as a service-based, knowledge-driven economy has put the
spot light on human capital. Higher education is essential to build a workforce
capable of underpinning a modern, competitive economy.
4.8 Level and Type of Higher Education Institutions in India
There are different types of universities and colleges in the higher education system
in the country. They vary in terms of their academic, administrative and financial
arrangements. Universities can either be established by an Act of Parliament or by
the state legislatures. Those established by the Act of Parliament are the central
universities and the ones set up by the state legislatures are state universities. Some
higher education institutions are granted the ‘deemed to be university’ status by the
central government through gazette notifications. A few institutions are established
by the Parliament / state legislatures as institutions of national importance.
Universities, deemed to be universities and institutions of national importance are
degree-granting institutions.
The universities could be of unitary type with single or even multiple campuses or of
affiliating type. The concept of an affiliating university is unique to South Asia
where a university affiliates colleges. These colleges conduct teaching-learning
under the academic supervision of the university to which they are affiliated. The
colleges do not award their own degrees, but award the degree of the university to
which they are affiliated. Though there is no clear demarcation, the colleges mainly
focus on undergraduate education while the universities impart post graduate
education and conduct research. In addition, there are many institutions like the
Indian Institutes of Management (IIMs) that only award diplomas. These diplomas
are however equated to degrees granted by the universities. Most universities and
colleges offer multidisciplinary programmes, however, there are also some that are
146
confined to a particular discipline only – such as agriculture, law, technology,
language, medical etc. There are also open universities that offer distance education
programmes only.
4.9 Academic Qualification Framework in India
There are three principle levels of qualifications within the higher education system
in the country which are as under:
Bachelor/ Undergraduate level: Bachelor's degree is offered after 12 years of
school education. Generally it is offered in two streams: liberal and professional
field of studies. The liberal studies are generally three years programme offered in
arts, commerce and sciences. Some institutions offer bachelor courses with honours
in liberal studies which are not necessarily longer in duration but indicate greater
depth of study. Bachelor degree in professional studies is generally a four years
programme offered in agriculture, dentistry, engineering, medicine, pharmacy,
technology, and veterinary. The bachelors in architecture and medicine take five and
five and a half years respectively. There are other bachelor programme which are
offered only after completion of first bachelor degree. These include one year
bachelors in education, journalism and library and information science. Similarly a
Bachelor's degree in law can be pursued only after completion of first bachelor
degree but is of three years bachelor programme. The bachelor degree in law is also
offered as an integrated degree lasting five years.
Master's / Post-graduate level: Master's degree is normally of two-year duration in
both the liberal and professional fields of study. It could be coursework based with
or without thesis or research. Now a days to match the skill requirement, fast track
programmes in professional streams such as Executive MBA are also available to
those having 3 to 5 years of experience at managerial level. Some Master's degree
147
such as in Library and Information Science lasts for one year while in Computer
Science lasts for three years.
Pre-Doctoral / Doctoral level: A pre-doctoral programme - Master of Philosophy
(M.Phil.) is taken after completion of the Master's Degree. This can either be
completely research based or can include course work as well which is generally of
one and half year duration. Doctor of Philosophy (Ph.D.) is pursued after masters or
pre-doctoral programme and generally takes two to five years to be awarded.
Students are expected to write a substantial thesis based on original research with or
without course work.
Diploma: Diploma Courses are also available at the undergraduate and postgraduate
level. At the undergraduate level, it varies between one to three years in length while
postgraduate diplomas are normally awarded after one year’s study.
Distance Learning Programmes: At all the levels, programmes in both liberal and
professional field are offered through distance learning mode which normally takes
longer duration than their equivalent regular programme.
Institutional framework:
The degree / diploma awarding institutions consist of the following:
Central Universities: A Central University in India is established by the
Government of India, by Act of Parliament.
State Universities: A State University in India is established by the State
Government, by State Legislature.
Deemed Universities: Institutions which have been accorded the status of a
university with authority to award their own degrees through central government
notification.
148
Open University: Open University can be a central or state University imparting
education exclusively through distance mode in any branch or branches of
knowledge.
Institutes of National Importance: Some of the higher education institutions are
awarded thesaid status of Institutes of National Importance by the act of Parliament.
Other Institutions: Include the Institutions established by State Legislative Act and
colleges affiliated to the University, both government-aided and –unaided.
The Universities are of various kinds, with a single faculty, or multi-faculties;
teaching or affiliating, or teaching cum affiliating, single campus or multiple
campuses. Most of the Universities are affiliating universities, which prescribe to the
affiliated colleges the course of study, hold examinations and award degrees, while
undergraduate and to some extent postgraduate colleges affiliated to them impart
graduate instruction. Many of the universities along with their affiliated colleges
have grown rapidly to the extent of becoming unmanageable. Therefore, as per
National Policy on Education, 1986, a scheme of autonomous colleges was
promoted. In the autonomous colleges, whereas the degree continues to be awarded
by the University, the name of the college is also included. The colleges develop and
propose new courses of study to the University for Approval. They are also fully
responsible for conduct of examination
4.10 Academic Regulatory Framework in India
Higher education is no longer perceived as an acquisition of a degree but an
instrument to obtain sufficient knowledge and skills so as to function as a productive
member of the society. The structure and delivery of higher education is changing,
including the coming up of new types of educational institutions and an increasing
149
use of technology that allows institutions to operate on a national and global scale.
Also, higher education has explicitly acquired an economic value in today’s
knowledge economy. All these changes have resulted in growing demand for
increased accountability (Schray, 2006).
Historically, in higher education, there was regulatory or compliance accountability
based on government statutes. In compliance-based accountability system, higher
education institutions are accountable for adherence to rules and accountable to the
bureaucracy. Over a period of time, as educators and in many cases professional
practitioners agreed on certain principles and practices, a professional-norms
approach to accountability emerged. Here the higher education institutions are
accountable for adherence to standards and accountable to their peers (Anderson,
2005). This came to be known as accreditation. The nature of regulatory and
accreditation mechanisms vary widely across nations depending on the structure of
their higher education systems.
The two accountability systems, particularly the compliance-based system, failed to
meet the growing aspirations of the stakeholders. With the emergence of new
models of higher education, many aspects of the two systems are now no more
useful. Dissatisfied with the outcomes, a third accountability system based upon
results, where results defined in terms of outcomes and more specifically student
learning has become popular. Here, the higher education institutions are accountable
for student learning and accountable to the general public (Anderson, 2005).
Finally, a view is now emerging that a good accountability system shall primarily be
based on results while being attentive to professional norms and regulatory
compliance requirements. There is a consensus that simply leaving supply and
demand to the market will not necessarily deliver outcomes for higher education that
150
represent the best use of resources or that are just and socially optimal (Teixeira et
al, 2004). The new set of regulatory practices is based on the understanding of the
market structure of higher education and takes into account a proper mix of the three
accountability systems.
Market Structure of Higher Education
Clearing of demand and supply in higher education is unique. In higher education,
students are both consumers and producers. In higher education, the quality of
education depends upon the quality of students. Students choose those institutions
that admit more meritorious (merit being a proxy for quality) students. Higher
education institutions improve their quality by choosing more meritorious students.
The quality of institutions is often determined by the quality of students. The
students buy and sell peer-quality. This makes the students both consumers and
producers of higher education.
The students pursue higher education for a variety of reasons. Similarly, all higher
education institutions also may not pursue profit maximization but strive for
excellence or academic reputation. Prestige plays the part in higher education that
price plays in the conventional markets. This reinforces the tendency of many
institutions to direct their resources towards those activities that may be valued by
many academics but not necessarily by the wider society. It is here that the basic
assumption of rational behaviour of the consumer (the student) and the producer (the
higher education institution) becomes wrong. This has consequences that are not
easy to factor in while designing a regulatory mechanism for higher education.
Present Structure of Regulatory System
There are multiple agencies and a complex web of rules and regulations that govern
the higher education system in the country with the UGC as the apex body. The state
151
governments; the thirteen professional councils at the national level and five
professional councils at the state level; the state councils; and affiliating universities
are the key stakeholders in the regulatory arrangement in the country. Though as per
constitutional mandate, all education including university education had been made
the responsibility of the states, the centre was assigned the key function of
coordination and determination of standards through Entry of the Union List of the
Constitution of India. In 1976, education was brought to the concurrent list as Entry
2521 and centre was brought on equal footing with the states for all levels of
education. The exclusive power assigned to the centre as per Entry 66 was however
retained.
The Constitution does not stipulate that the centre should maintain standards.
However, realizing that neither coordination nor determination of standards is
possible without having some control (Singh, 2004), this role has been assumed by
the central government in the course of evolution of higher education system in the
country. For this purpose, the central government set different statutory bodies over
the years. In all, the central government has a key role in defining public policy for
higher education in the country. In fact, the central government and its various
agencies have come to occupy the centre-stage of higher education in the country.
Over the years, the central government has established several institutions of higher
education. The Central government also maintains these institutions in addition to
the three universities, namely - Delhi University, Aligarh Muslim University and
Banaras Hindu University assigned to the Central Government under the
constitution. In all, the higher education institutions and regulatory bodies that are
maintained and funded by the central government and the key appointments are also
made by the central government. This enables the central government to have a final
152
say on major issues. In addition, the central government on recommendation of the
UGC confers on higher education institutions the status of a deemed-to-be-
university and specifies the title of degrees to be awarded in the system. In matters
of pay scales and career progression of teachers in universities and colleges in the
country, the central government has a decisive role. The central government
discharges its responsibilities primarily through the Ministry of Human Resource
Development. In addition, there are at least fifteen other ministries/ departments in
the Government of India that either establish, finance or regulate higher education
institutions. Whereas medical education comes within the purview of the Ministry of
Health, agriculture education and research is looked after by the Ministry of
Agriculture.
The institutions imparting higher education at different levels are regulated by the
following bodies:
University Grants Commission (UGC) set up under UGC Act 1956 is responsible
forcoordination, determination, and maintenance of standards and release of grants
to universities and research organizations.
All India Council of Technical Education (AICTE) has been established under
the AICTE Act, 1987. The council is authorized to take all steps that are considered
appropriate for ensuring coordinated and integrated development of technical
education and for maintenance of standards.
Medical Council of India (MCI) was set up by the Indian Medical Council Act,
1956, amended in 1993. The council is empowered to prescribe minimum standards
for medical education required for granting recognized medical qualifications by
universities or medical institutions in India. The Council is also responsible to give
its recommendations to the Central Government for establishing new medical
153
colleges, opening of new or higher courses of study and increase in admission
capacity in any courses of study or training.
Indian Council for Agricultural Research (ICAR) has established various
research centres in order to meet the agricultural research and education needs of the
country. It is actively pursuing human resource development in the field of
agricultural sciences by setting up numerous agricultural universities spanning the
entire country.
National Council for Teacher Education (NCTE) is a statutory body set up under
the National Council for Teacher Education Act, 1993 to facilitate planned and
coordinated development of the teacher education system in the country, and for
regulation and proper maintenance of norms and standards in the teacher education
system. The Council is empowered to grant recognition of institutions offering
courses or training in teacher education.
Dentists Council of India (DCI) constituted under the Dentists Act, 1948, is a
statutory body incorporated under an Act of Parliament to regulate the dental
education and the profession of dentistry throughout India. The council is
responsible for according recognition to dental degree awarded by various
universities and also for maintaining uniform standards of dental education in India.
Pharmacy Council of India (PCI) also known as central council was constituted
under Section 3 of the Pharmacy Act, 1948. The PCI controls pharmacy education
and profession in India up to graduate level. The council prescribes the minimum
standard of education for qualification as pharmacist.
Indian Nursing Council (INC) is a statutory body constituted under the Indian
Nursing Council Act, 1947. The council is responsible for regulation and
154
maintenance of a uniform standard of training for nurses, midwives, auxiliary nurse-
midwives and health visitors.
Bar Council of India (BCI) is empowered to make rules to discharge its functions
under the Advocates Act 1961. An important rule-making power is with reference to
laying down guidelines for the standards of professional conduct and etiquette to be
observed by advocates. The Bar Council of India rules may prescribe for a class or
category of person entitled to be enrolled as advocate. The Bar Council of India can
also specify the conditions subject to which an advocate must have the right to
practice and the circumstances under which a person must be deemed to practice as
an advocate in a court.
Central Council of Homeopathy (CCH) was established under the Homoeopathy
Central Council Act, 1973. The council prescribes and recognizes all homeopathic
medicine qualifications. Any university or medical institutions that desires to grant a
medical qualification in homeopathy is required to apply to the council. The council
is responsible for constitution and maintenance of a Central Register of
Homoeopathy and for matters connected therewith. All universities and board of
medical institutions in India are required to furnish all information regarding courses
of study and examination.
Central Council for Indian Medicine (CCIM) is the statutory body constituted
under the Indian Medicine Central Council Act, 1970. This council prescribes
minimum standards of education in Indian Systems of Medicine viz. Ayurved,
Siddha, Unani Tibb. The council is responsible to maintain a Central Register on
Indian Medicine and prescribes standards of professional conduct, etiquette and
code of ethics to be observed by the practitioners.
155
Council of Architecture (COA) was constituted under the provisions of the
Architects Act, 1972, enacted by the Parliament of India. The Act provides for
registration of Architects, standards of education, recognized qualifications and
standards of practice to be complied with by the practicing architects. The Council
of Architecture is responsible to regulate the education and practice of profession
throughout India besides maintaining the register of architects. Any person desirous
of carrying on the profession of "Architect" must register himself with Council of
Architecture.
Distance Education Council (DEC) was constituted under statute 28 arising from
Section 25 of the Indira Gandhi National Open University Act, 1985. The Distance
Education Council (DEC) is responsible for the promotion and coordination of the
open university and distance education system and for determination of its
standards. The Council provides academic guidelines to promote excellence,
encourage use of innovative technologies and approaches, enable convergence of all
systems and sharing of resources through collaborative networking for access to
sustainable education, skill up-gradation and training to all.
Rehabilitation Council of India (RCI) The Parliament enacted Rehabilitation
Council of India Act in 1992. It prescribes that any one delivering services to people
with disability, who does not possess qualifications recognized by RCI, could be
prosecuted. Thus the Council has the twin responsibility of standardizing and
regulating the training of personnel and professional in the field of Rehabilitation
and Special Education.
National Council for Rural Institutes (NCRI) is an autonomous society fully
funded by the Ministry of Human Resources Development, Government of India. It
was established with a main objective of promoting Rural Higher Education for
156
advancing rural livelihoods with the instrument of education based on the values
proposed by Mahatma Gandhiji.
State Councils of Higher Education (SCHE) Following the National Policy on
Education, respective state governments have established State Councils of Higher
Education (SCHE). These councils prepare coordinated programs of development of
higher education in each state. Thus, they seek to consolidate the efforts and
investments of institutions of higher education with the state.
Role of Regulatory Bodies vis-a-vis Quality
There are significant differences in their mandate, powers and functions. The
councils have rules and regulations of their own. There is large overlap of their
functions with the functions of the UGC, other professional councils and even
function of universities in some cases. In five cases, namely - Medical Council of
India, Pharmacy Council of India, All India Council for Technical Education, Indian
Nursing Council and the Bar Council of India, there are also State Councils; and
there are overlaps in functions of the national councils and state councils.
Today in this scenario there is very little of clearly defined policy for promoting and
regulating institutions and especially the private initiatives. “Whatever policies exist,
they are of ad-hoc nature prescribed by either the central regulatory bodies and /or
by the various states and UT’s. Often because of inconsistencies, ambiguities, and
vagueness -especially in the light of different legal mandates of these agencies and
the concurrent status of higher education-there have been a plethora of legal battles
resulting in enormous expenditure to the governments and the institutions” (M.
Anandakrishnan, Policy Orientation for Private Initiatives in Hr education: Issues
and Options, 2003)
157
In order to encourage full participation of private education providers the regulatory
bodies have to play the role of facilitators and not regulators. There should not be
any inconsistency in the policy for the growth of different types of higher education
institutions. There is a need to establish a system whereby there is a minimum
procedural consistency among the regulatory bodies in establishing new higher
educational institutions. Since there are different types of institutions coming up in
the same premises under the responsibilities of different agencies which create more
confusion and delay. So harmonizing the processes of different agencies would
require willingness on the part of the agencies themselves and amendments in their
Acts and statutes. One very important thing, which has to be kept in mind that too
much interference exerted by the Regulatory bodies would result in discouraging
their initiative and autonomy. There are multi-layered regulations, which have to be
made more simple and supportive.
It can also be thought that all that is required to ensure quality across the board is to
have a national level overseeing body that is teethed with powers to grant
permission to establish a university and to derecognize an already established
university if it fails to maintain the prescribed standards. It is also essential that the
functioning of such a central authority is transparent and its decision are nor
arbitrary. To ensure such transparent governance authority should prescribe its
parameters for granting permission to establish a Institution/university. Similarly it
should also make it known to the participating agencies as to on what lines the
performance of a university is assessed to declare it as eligible for its continuation or
not.
Taking a cue from the experiences it is time that we had one central body to oversee
the functioning of higher institutions/universities-both in public and private
158
management and evaluate them on prescribed quality parameters to ensure
excellence in education. This anomaly needs to be corrected if the credibility of
Indian Higher Education system is to be sustained in the coming years under
severely changing competitive environment. It can only be possible if the different
approaches in policies between the various regulatory bodies and agencies are
harmonized.
Review of the existing structure of regulatory system in India and the way it
regulates various aspects of higher education show that the existing regulatory
procedures are extremely burdensome and counter-productive. They often control
supply limiting choice by erecting formidable entry barriers for new institutions to
be set up through private enterprise. Time consuming, non-transparent and complex
procedures applied arbitrarily, create conducive environment for rent seeking and
patronage. It makes higher education institutions less accountable. The system is
strait-jacketed and inhibits innovation. Overall, the system works towards
standardization in higher education and not for maintenance of standards. There is a
widespread feeling that regulatory bodies in India have miserably failed to discharge
their responsibility towards maintenance of standards. Summing up the situation,
Mehta and Kapur(2004) conclude that the existing laws regulating higher education
in India tend to promote adverse selection. It deters genuine investment in education,
but encourages those who are adapt at manipulating the license quota raj in the
system.
Sl.
No
Name of Body Mandate Overlap with role of
159
1
University Grants
Commission
Co-ordination, determination
and maintenance of standards in
higher education. ; Release of
grants to individual institutions
Other professional
councils and DEC
2
All India Council
forTechnical
Education
Proper planning & coordinated
development of technical
education system throughout the
country
UGC,
DEC,PharmacyCouncil
of India, Council of
Architecture and the
State Councilsfor
Technical Education
3
Distance
Education
Council
Promotion of Open University in
and Distance Education systems
in the educational
pattern of the country
Other professional
councils and UGC
4
Indian Council of
Agricultural
Research
Co-ordination of agricultural
research and development
programmes and develop
linkages at national and
international levels
UGC
5
Bar Council of
India
Co-ordination, determination
andmaintenance of standards in
legal educationand profession
State Bar Council
6
National Council
for
Teachers
Achieving planned and
coordinateddevelopment of the
teacher education system
DEC
160
Education
throughout the country
7
Rehabilitation
Council ofIndia
Standardization and regulation
of training ofpersonnel and
professionals in the field of
rehabilitation and special
education
State governments
8
Medical Council
of India
Establishment of standards in
medicaleducation and to define
medical qualifications
in India and abroad
State Medical Council
and the State Govt.
UGC and DEC to a
limited extent
9
Pharmacy
Council of
India
Prescription, regulation and
maintenance ofminimum
educational standards for the
training of pharmacists
AICTE and State
PharmacyCouncils
10
Indian Nursing
Council
Regulation and maintenance of
uniform
22 State Nursing
Councils
Table No: 4: 2 A snapshot of the different regulatory bodies of Higher Education
in India
In a recent survey of the degree of regulatory control of the major higher education
systems in the world, The Economist has noted that whereas, most nations in the
161
world (including China) are working towards loosening of statutory control over
their higher education systems, India is moving in reverse direction and tightening
government control in institutions of higher education. It is also clear from the
mapping of the regulatory system in India that there is a diarchy in higher education
in India. While, UGC is expected to oversee it, the state governments regulate it in
practice. In addition, the higher education institutions are subjected to a multi-
layered regulatory and control process involving a number of agencies and bodies.
Despite all this, higher education in India has virtually remained an unbridled horse
(Pinto, 1984).
In view of the above, it is no surprise that many of the better known institutions of
higher education in India such as – the Indian Institutes of Technology (IITS), the
Indian Institutes of Management (IIMs), National Institute of Fashion Technology
(NIFT), National Institute of Design (NID), Indian Institute of Science (IISc), Tata
Institute of Social Sciences (TISS) and Birla Institute of Technology and Sciences
(Pilani) – are all outside the conventional university system in India. IIMs, NIFT and
NID do not even have degree granting powers and offer only diplomas.
Complex and dysfunctional regulatory arrangements for higher education in India
have raised serious concerns about the credibility of the Indian higher education
system. There is a need to safeguard its integrity and enhance its credibility. Loss of
this credibility would have serious repercussions. Our competitive advantage as a
nation with huge reserve of highly qualified and trained manpower may be lost.
Many countries are shying away in signing mutual recognition agreements with us
because of horror stories that they hear about deteriorating standards of higher
education in India. This would become more difficult in the years to come, if we
allow any further compromise on the standards of higher education in the country.
162
Being blamed for all its ills, it is often argued that total deregulation of higher
education in India would serve the public interest best. This argument is based on
the simple principle of economics that if the market regulates institutions more
efficiently and effectively than the state, then task of regulation should be left to the
market; facilitating oversupply would be the best way to subject market sensitive
institutions to the regulations of the market. The manner in which clearing of
demand and supply takes place in higher education suggests that leaving higher
education to market forces may not be most viable option. Though, academics
would normally object to the concept of regulation especially as it relates to
academic quality, however it needs to be understood that due to its very nature,
academic standards need to be determined and coordinated across universities
requiring some kind of external scrutiny. This makes regulation important; though
equally important is as to the nature of regulation, who is responsible to develop and
who would implement these regulations.
163
CHAPTER 5
EMERGING ISSUES AND CHALLENGES IN HIGHER
EDUCATION
The higher education system in India has developed in a remarkable way,
particularly in the post-independence period, to become one of the largest systems of
its kind in the world. However, the system has many issues of concern at present,
like financing and management including access, equity and relevance, reorientation
of programmes by laying emphasis on health consciousness, values and ethics and
quality of higher education together with the assessment of institutions and their
accreditation. From its very shape of the education and education system present
today in India, it is evident that there is a very serious effort required in terms of
creating new channels of education, developing a standard delivery system of
education, generating funds to support the universalisation of primary education and
other levels, increasing the vocational training at all levels to create able manpower
in the society, streamlining the technical and higher education towards quality
offering, modeling standards at all levels for public private partnership, building
research oriented institutions and bridging the academic and economy gap.
As India strives to compete in a globalised economy in areas that require highly
trained professionals, the quality of higher education becomes increasingly
important. So far, India’s large, educated population base and its reservoir of at least
moderately well trained university graduates have aided the country in moving
ahead, but the competition is fierce; from China in particular. Other countries are
also upgrading higher education with the aim of building world class universities.
Even the small top tier of higher education faces serious problems. Many IIT
graduates, well trained in technology, have chosen not to contribute their skills to
164
the burgeoning technology sector in India; perhaps half leave the country
immediately upon graduation to pursue advanced studies abroad, and most do not
return. A stunning 86 per cent of Indian students in the fields of science and
technology who obtain degrees in the United States do not return home immediately
following their graduation. A body of dedicated and able teachers work at the IITs
and IIMs, but the lure of jobs abroad and in the private sector makes it increasingly
difficult to lure the best and brightest to the academic profession.
The present system of higher education does not serve the purpose for which it has
been started. In general education itself has become so profitable a business that
quality is lost in the increase of quantity of professional institutions with quota
system and politicization adding fuel to the fire of spoil system, thereby increasing
unemployment of graduates without quick relief to mitigate their sufferings in the
job market of the country. So, the drawbacks of the higher education system
underscore the need for reforms to make it worthwhile and beneficial to all
concerned.
Most observers agree that Indian higher education, the momentous and impressive
developments of the past few decades notwithstanding, faces major challenges in
both quantitative and qualitative terms. Perhaps the clearest and boldest statement of
this issue can be found in the “Report to the Nation 2006” of the National
Knowledge Commission which concludes that there is ‘a quiet crisis in higher
education in India that runs deep’, and that it has to do with both the quantity and the
quality of higher education in India. Recognizing this dual challenge, the Indian
Prime Minister, Manmohan Singh, severely criticized in a speech the
seriousqualitative deficiencies in Indian higher education while at the same time
announcing plans for a major expansion of the system. Reflecting on the findings of
165
a confidential report by the National Assessment and Accreditation Council, which
is affiliated to the University Grants Commission (UGC), he expressed his concern
over the fact that two thirds (68%) of the country’s universities and 90 percent of its
colleges are “of middling or poor quality” and that well over half of the faculty in
India’s colleges do not have the appropriate degree qualifications. Knowledge is the
base for overall growth and if the nation has to be competitive and to be at par with
the globalization pace, we will have to respond to the market forces.
Quality of education delivered in most institutions is evaluated to be very poor.
While India has some institutions of global repute delivering quality education, such
as (Indian Institute of Management) IIMs and (Indian Institute of Technology) IITs,
we do not have enough of them. It has very narrow range of course options that are
offered and education is a seller’s market, where is no scope of incentive to provide
quality education. There is clearly a lack of educated Educators and teaching is not
an attractive profession. It’s a last choice in terms of career. Number of Ph.D.s
produced each year is very low and those required by academia is far higher. In fact,
at many institutions fresh graduates are employed to teach, leading to poor quality of
classroom instruction. Most of the education institutions especially in states such as
Maharashtra and states in South India are owned by politicians.
The growth of higher education in India has been largely guided by the serviceable
prerequisite of the economy. After independence, the role of the state in planning
out a development path and also in building higher education institutions was guided
by mutuality of purpose. Most observers of higher education in India feel that
performance of higher education institutions has been less than satisfactory in terms
of access, equity and quality. Now there is an urgent need to work for the
development of the educational sector to meet the need of the emerging
166
opportunities, increasing younger generation population and challenges of the 21st
century.
Some of the issues which are recognized to be of great concern and require
immediate attention with reference to the changing social structure, economic
growth, opening up to borderless economy and increased attention towards the
public policy system and private partnership need to be addressed. There is a
realization that driven mainly by the private sector, the higher education system in
India has grown fast over the last two decades; however this expansion has been
chaotic and unplanned. From an elite system of higher education, it is moving
towards mass system of higher education. Expansion of enrolment without adequate
public financing and emergence of the private de facto for-profit providers of higher
education has changed the relationship between the higher education institutions
and the government and its regulatory arms. The drive to make higher education
socially inclusive has led to a sudden and dramatic increase in numbers without a
proportionate increase in material and intellectual resources. As a result, academic
standards have become unsettled and have been placed in jeopardy in the
university-system in the country since the 1960s (André Béteille, 2005)
There are many basic problems facing higher education in India today. These
include inadequate infrastructure and facilities, large vacancies in faculty positions
and poor faculty thereof, outmoded teaching methods, declining research standards,
unmotivated students, overcrowded classrooms and widespread geographic, income,
gender, and ethnic imbalances. Apart from concerns relating to deteriorating
standards, there is reported exploitation of students by many private providers.
Ensuring equitable access to quality higher education for students coming from poor
families is a major challenge. Students from poor background are put to further
167
disadvantage since they are not academically prepared to crack highly competitive
entrance examinations that have bias towards urban elite and rich students having
access to private tuitions and coaching. Education in basic sciences and subjects that
are not market friendly has suffered.
Research in higher education institutions is at its lowest ebb. There is an inadequate
and diminishing financial support for higher education from the government and
from society. Many colleges established in rural areas are non-viable, are under-
enrolled and have extremely poor infrastructure and facilities with just a few
teachers. A series of judicial interventions over the last two decades and knee-jerk
reaction of the government – both at the centre and state level and the regulatory
bodies without proper understanding of the emerging market structure of higher
education in India has further added confusion to the higher education landscape in
the country. There is an absence of a well-informed reform agenda for higher
education in the country. A few efforts made now and then are not rooted in the new
global realties based on competition and increased mobility of students and
workforce.
5.1 Challenges of Present Higher Eeducational System in India
Since independence Indiaconfronts challenges to establish a great and strong
education system. Various governments came and gone. They tried to establish new
education policies in the system but this is very sad to dictate that they were not
sufficient for our country. India recognizes that the new global scenario poses
unprecedented challenges for the higher education system. The University Grants
Commission has appropriately stated that a whole range of skills will be demanded
from the graduates of humanities, social sciences, natural sciences and commerce, as
well as from the various professional disciplines such as agriculture, law,
168
management, medicine or engineering. India can no longer continue the model of
general education as it has been persisting in for the large bulk of the student
population. Rather, it requires a major investment to make human resource
productive by coupling the older general disciplines of humanities, social sciences,
natural sciences and commerce to their applications in the new economy and having
adequate field based experience to enhance knowledge with skills and develop
appropriate attitudes.
Responding to these emerging needs, the UGC stated:quote "The University has a
crucial role to play in promoting social change. It must make an impact on the
community if it is to retain its legitimacy and gain public support" unquote. It seeks
to do so by a new emphasis on community based programmes and work on social
issues. Concepts of access, equity, relevance and quality can be operationalized only
if the system is both effective and efficient. Hence, the management of higher
education and the total networking of the system has become an important issue for
effective management. The shift can occur only through a systemic approach to
change as also the development of its human resource, and networking the system
through information and communication technology. There are many basic problems
facing higher education in India today. These include inadequate infrastructure and
facilities, large vacancies in faculty positions and poor faculty thereof, low student
enrolment rate, outmoded teaching methods, declining research standards,
unmotivated students, overcrowded classrooms and widespread geographic,income,
gender, and ethnic imbalances. Apart from concerns relating to deteriorating
standards, there is reported exploitation of students by many private providers.
Ensuring equitable access to quality higher education for students coming from poor
families is a major challenge. Students from poor background are put to further
169
disadvantage since they are not academically prepared to crack highly competitive
entrance examinations that have bias towards urban elite and rich students having
access to private tuitions and coaching.
Education in basic sciences and subjects that are not market friendly has suffered.
There is an inadequate and diminishing financial support for higher education from
the government and from society. Many colleges established in rural areas are non-
viable, are under-enrolled and have extremely poor infrastructure and facilities with
just a few teachers. A series of judicial interventions over the last two decades and
knee-jerk reaction of the government – both at the centre and state level and the
regulatory bodies without proper understanding of the emerging market structure of
higher education in India has further added confusion to the higher education
landscape in the country. There is an absence of a well-informed reform agenda for
higher education in the country. A few efforts made now and then are not rooted in
the new global realties based on competition and increased mobility of students and
workforce.
Time to time system influenced with new challenges and government taken a major
role to build the system. But there are many challenges always faced by the
government. Up -gradation of curriculum to keep in pace with rapid growth of
science and technology; globalization and the resultant challenges from the
international universities; grooming of many private institutions without any method
of ensuring maintenance of quality and standard; need for adequate funding to meet
the demands of various novel innovative programmes; developing a meaningful and
purposeful inter-face between the universities, National Research Laboratories,
industries, government and society, etc. ICT in higher education policy may not be
170
able to completely overcome all these challenges though it may play a role in
information and resource sharing.
There are so many people in various parts of country who are still out of reach.
Government has to rethink on these areas to implement more on the policies.
Financial resources also play a vital role for the education system.The constitution
of India has clearly stated that it is the responsibility of central and state government
to build good education system in the country. For this there needs to be enough
funds generated and utilized. But despite there was a large expenditure on the funds
every year on Education the system remains intact. Central government prepared
policies and plan while responsibility of State government was to run those policies
on ground. The standard education facilities are higher in the states which are much
rich. There is a need to change such defects from the country education system
which only can be influenced by increasing funding and providing better facilities to
students. But it Government tries to make different policies which are implemented
but quality never checked. There is a vast need to improve the quality and standards.
The time is at hand to modernize the education system so that the country can get
much more technically graduated people which can help our country to developed
state. Today’s youth always try to move to foreign countries for their higher
education as they could avail much better facilities and quality of their system. The
people have to stop this brain drainage so as avoid students to run away from
country. Whatever be the efforts invested by the Government in this direction the
system remains intact. The realm of Higher education is found extremely diverse
and the challenges and issues faced by higher education institutions are also diverse.
The process of education is not satisfied with merely designing curriculum butit is
also undertaking several co-curricular and extra-curricular activities that give a
171
broader meaning to life in general and education in particular. The opportunities for
such holistic development are not found sufficient in India: where such facilities are
in existence, there is seen a lack of communication regarding the same for the
general public.
The challenges faced by the present education scenario are being explained in the
following pages.
5.1. a. financial constraints
One of the most important things that have to be noticed is the issue of financial
constraints of the government. The State Government has already been spending 20-
30 percent of its revenue budget on education. It is without doubt that the
government has to spend on elementary education, they have to spend on secondary
education and the budget outlays of the government also reflect that. The
government is also moving towards compulsory secondary education and those steps
have to be applauded upon. But that basically means that even for the secondary
education they the funds deployedmight not be sufficient raises the issue that 50% of
the existing allocation in the budget for the next five years, has to be increased for
education sector.What is actually meant is that since the Higher Education sector has
various divergent issues of quality and diversification the fund outlay becomes
insufficient to meet all its requirements.
Pattern of public expenditure in higher education constitutes two important phases:
A high growth phase of public expenditure from 1951 to 1980 and a low growth
phase of public expenditure in higher education from 1980 to 2004. The compound
annual rate of growth of central plan and non-plan expenditure in the former phase
had grown at 17%, which declined sharply to 10% in the second phase, while the
corresponding compound annual rate of growth of state plan and non-plan
172
expenditure in this former phase had grown at 15% which declined sharply to 11%
in the second phase. Thus, decline in the rate of growth of public expenditure by the
centre has been much sharper in comparison to decline in the rate of growth of
public expenditure by the state. The former phase in the growth of public
expenditure had been a high growth phase in spite of the fact that the rate of growth
of GDP in this former phase was much lower at 3.35% as compared to the 5.42%
rate of growth of GDP in the second phase
1951-52 to 1979-80 1980-81 to 2003-04
Total States &UT 15 11
Central Total 17 10
Grand Total 17 11
GDP 3.35 5.42
Table No. 5. 1: Total Public Expenditure on Higher Education
(Source: UGC data)
“As a result of reduced funding and rising costs, there are pressures to find more
cost-effective solutions in every aspect of higher education. Knowledge economy has
endowed higher education explicitly with an economic value. Higher education is no
longer perceived as acquisition of a paper degree but an opportunity to obtain
sufficient knowledge and skill so as to function as a productive member of society.
There is now a more instrumental view of higher education. Finally, there is the
changing structure and delivery of higher education including new types of
educational institutions, and increasing use of technology that allows institutions to
operate on national and global scale. All these changes have resulted in growing
173
demand for increased accountability”(Schray, 2006).
5.1. b. Autonomy and Affordability
A talk on autonomy then it is not just for the private institutions and the self
financed institutions but also autonomy for the institutions, which are under the
government either fully or partly financed by the government. The type of autonomy
which ensures that the stakeholders are protected-particularly the students-against
dilution in quality or being misled. Concerning autonomy, the law must delegate the
necessary decision making power to the institution – for changes in curricula and
teaching methods, for internal self-governance, for interaction with other
organizations nationally and internationally and for economic transactions.
It is also found very important that accountability must follow autonomy. In all fields
where the institution has been given the responsibility to make its own decisions, the
decision process should be transparent and results should be made public. On the
other hand quality assurance systems will be important cornerstones in our system of
higher education. The quality assurance system must be independent of political and
institutional interaction and it must have a basis in the legislation. There should be
operational, financial and academic autonomy coupled with accountability. When it
comes in forms of financial autonomy as has been observed by educationists in the
past, the case for subsidy in the supply of education to the individual consumer is
based on the premise that education is a mixed good involving substantial external
benefits. However, it is widely agreed that such external benefits tend to taper off at
higher levels of education and that there should be greater correspondence between
costs involved and fees charged. Such an approach favours enhancement of tuition
fees and other related fees.
174
5.1.c. Access and Equity
The matter of access and equity of higher education is another very important issue
in the management of higher education. This should be based on the simple principle
that has already been stated ‘No talented and deserving person should be denied
access to higher education’. This guiding code presumes a lot of things. Higher
education should be based on merit and desire and not economic, social or
influential forces. Sate with the help of private sector, should take primary
responsibility of financing higher education, as fees will not be able to play a central
role in the higher education economics. The concept of earning while learning or
exchange of labour or skills for education needs to be promoted. Acquiring of
multiple degrees and diplomas simultaneously has to be encouraged and the
standards of evaluation have to be strengthened. Disparities and discrimination of
age, gender, and socio-economic background need to be tackled.
5.1.d. Quality assurance: Need of an Independent Accreditation System
There is a need of an independent accreditation agency with a conglomerate of
government, industry, academia, society etc. means all stakeholders of the education
to ensure that the stakeholders particularly the students are not taken for a ride. They
should be able to know whether a particular institution delivers value or not, then
things can be under control to some extent. The institution, which excels in
obtaining Accreditation, should be encouraged to levy higher tuition fees from those
who can afford, compared to those who do not receive Accreditation. It is also
important that all institutes of higher learning must make public the acceptability of
their courses and degrees. (i.e. the status, recognition and acceptability of their
courses by other institutions). Any misrepresentation of facts to the general
175
publicshould make the institute and its promoters, directors and staff liable for civil
prosecution Technical education, both vocational and professional, constitutes the
foundation for development of science and technology, and business. India is rightly
proud of the international standing of its IITs, and IIMs, but a handful of world-class
technical institutions are not sufficient. A large number of the country’s engineering
colleges, medical colleges, business schools, other science and technology
institutions need to be created and upgraded to quality standards and given the
required autonomy.
5.1.e. Relevance
In the changing new world order higher education should equip students only with
generic skills rather than tailor them to meet the specific requirements of industry.
This is due to the realization that evaluation of economic needs is often random and
approximate and could change often. It is argued that the generic skills together with
flexibility and adaptability and an acceptance of the need for life-long learning, will
provide young people with the best basis for a career in any area, including industry
and for the unforeseen needs of the future. Though, there is merit in this argument,
however there is no doubt that education needs to be made more useful and usable
and to prepare young people for employment and encourage adaptability. The above
analysis calls for the intervention by the state to make the connection between
higher education and the jobs more efficient as a means for reducing unemployment.
This is based on an instrumental and extrinsic model of higher education - rather
than on the more altruistic and intrinsic model of liberal education and is in line with
the human capital approach towards higher education.In all, there is a need for the
enlargement of diversity and adaptive capacity of higher education and training
system in India to respond to changing economic environment. Adaptability in
176
higher education needs to be nurtured in two ways – first by creating conditions for
a continuous updating of curriculum and content as per changing needs and secondly
by shuffling admission capacities between different institutions and courses as per
job market needs. Coexistence of high graduate unemployment and shortage of
skills reflects the paradox of the Indian higher education system. To avoid
mismatch, capacity of the higher education system has to be aligned to the job-
markets.
5.1. f. Internationalization of Education
There has been a very aggressive approach by USA, UK and Australia in few
decades on spreading their education outside the country and these countries have
taken some of the issues in their parliamentary bills to expand and develop the
vocational and higher education outside the country. In Asia, Singapore, Malaysia,
Dubai are such places, which have made few locations of Education offering with
quality while providing minimum infrastructure. As commented by Dean, London
Business School that ‘India lacks in offering basic infrastructure and location to
offer quality education from the reputed universities of the world’. There is a need
of very clear view on Education Policy on the internationalization of the higher and
other level of education in either form by inviting the foreign players in the Indian
education and by providing the Indian education players through and official
channels to the countries, which have opportunities for Indian educational
institutions.
5.1. g. Vocationalization of Education
There is a gap between the need of the employment terminals i.e. industry and the
academic institutions. With the reducing government employment opportunities and
177
increasing economy-oriented employment, close links need to be fostered between
vocational institutions and user industry and also technical and professional
institutions and industry. It is important to recognize the level of involvement of the
industry and thus create interest of the industry in developing the quality, financial
support, acceptance of the produce, creation of more employment etc. The higher
education systems have very controlled way of qualifying the recognition of offering
the degree or the diploma. These systems do not allow majority of the institutions to
offer quality developmental programmes, which are needs of the economic
manpower. There should be an independent accreditation body to assess the
purpose, quality and offering of the programmes for undergraduate programmes,
from one-year masters to three year of masters or even higher education.
5.2. Public-Private Partnership and Institution-Industry Interface
There has been some effort both by the government and the private education
institutions to develop the teaching staff at various levels. However, this needs to be
intensified with appropriate attention to all the aspects related in order to prepare
quality and sufficient number of educational staff. Such efforts need a very serious
structuring for the research base institutions. It is a very popular and known fact that
funding of the institutions either private or the government, is not going to be
supported by the state or central governments for long. A public – Private
Partnership Model should be developed and encouraged by the government to create
a self-sustainable model of education in times to come. Looking at the whole
scenario, there is a need or interaction between universities, academic institutions of
higher learning, industry, R&D institutions and funding agencies. This could be
achieved by a synergy process wherein they will be partners in various activities,
complementing each other in reaching their visions, objectives and goals. Generally,
178
this is perceived as an activity for interaction but there is need to re-look in order to
develop such a process wherein there will be more than interaction. This could be
achieved by PARTNERSHIP. A few interventions needed are (i) Develop a database
of facilities available in the university, Industry and R&D institutions. (ii)
Involvement of Industry in the curriculum development and also implementation of
the curriculum (iii) Faculty exchange and participation in industry and vice-versa in
university and specialized institutions (iv) Participation of executive who have
Ph.D., involve them in research and development both in industry as well as
universities (v) Industry to utilize the human resource and infrastructure available in
the universities for problem solving, testing, certification etc. (vi) Conducting
advanced programme in technical, management and other need-based areas, tackling
contemporary issues of mutually beneficial nature (vii) setting up a business
development cell on partnership and (viii) Promoting entrepreneurship in education
system.
Dr. Gopal’s Views on Present Day Challenges on Education
The challenge to provide quality education is being dependent primarily on the three
main stakeholders, namely, the students, faculty and industry. Since the industry
people very rarely take active interest in fulfilling this mission the burden of
providing quality education lies mainly on the faculty as providers and on students
as receivers. (Gopal R., 2014). The disinterestedness of the different parties in
higher education, the industry not availing themselves for sharing their experience,
students just pretending to attend the classes and the faculty not upgrading
themselves in the academic inputs is the reason for the net result of an all round
dissatisfaction in the field of higher education. (Gopal R.,2014). This dissatisfaction
could be reduced by controlling the input side by the institution either by reducing
179
the intakes of students, limiting the number of higher education institutions and by
continually monitoring the academic progress of the students by helping the students
develop holistically, ensuring development of soft skills through involvement in
socially involved projects etc. (Gopal R. 2014) The key challenge for a student
could be seen as the relevance of what is being taught in the classroom. With a large
number of career options available, it has become important for students to
understand their needs, identity, their strengths and weaknesses before making a
career decision. Education industry has a very stereotypic image in the country,
wherein people expect the institutes to only teach from the books and the terms like
innovation and creativity are being neglected and given a back stage. But when the
same students enter the corporate they are expected to be innovative and creative
and to come out with new ideas and strategies.(R Gopal, 2014)
5.3. Status of Higher Education and Research
With the fast change due to the impact of globalization, the role of the higher
education institutions in improving growth research and scholarship is becoming
vital. The term ‘research and scholarship’ usually refers to discovering or generating
new knowledge, or resolving particular practical or theoretical problems. With its
increasing importance, various definitions have been given to account for a wide
range of activities and disciplines. While ‘research’ means systematic and rigorous
enquiry leading to research outputs, ‘scholarship’ is seen as the means by which
academic keep themselves up-to-date with changes in their own disciplines so that
they can communicate the latest knowledge on the discipline to their students and
peers. Research and development (usually abbreviated as R & D) activities are
aimed at making scientific discoveries and inventions that are commercially
180
attractive (Harman, 2006). The focus ofthis section is primarily, though not
exclusively, on R & D activities.
5.3.1 Concepts and issues
During the last century, knowledge has been a key factor in economic development,
and societies that are able to produce, select, adapt, and commercialize knowledge
have better chances of achieving sustained growth and better quality of life.
Mcarthur and Sachs (2002) point out that of the three inter-related mechanisms-
division of labour, capital accumulation, and technological innovation involved in
economic growth, technological innovation is the most fundamental; it is self-
perpetuating and pushes economic growth on a continuous basis. Each new
innovation triggers further innovation, in a kind of chain reaction that fuels long-
term economic growth. Thus, in several science-based, technologically advanced
economies, economic growth has continued for several decades without running out
of dynamism, or even slowing down. This underscores the need for research,
particularly scientific research in modern economy.
Higher education plays an important role in supporting a nation’s R & D efforts. It
provides skilled human resources for the R & D system. It is often the lead player in
public research arena. Academic research through universities forms an important
component of the technological base of a country. In the USA that has the most
vibrant and the largest R & D system in the world, higher education plays a vital
role. This sub-section briefly explains some concepts. It outlines a few
developments that define the role of innovation in economic growth and explores its
linkage with academic research.
5.3.2 Pure and applied research
181
Research is seen as a primary and a vital function of a university and, therefore, of
the higher education systems worldwide. There is often a conflict between pure and
applied research, particularly in science. Though pure science may require no
justification outside itself and its usefulness has no bearing on its validation, it is
now widely accepted that the fruits of technology follow careful nurture of basic
sciences. It is commonly held that pure science, applied science, engineering and
technology follow one another in a linear sequence. Therefore, pure science is not
only important by itself; it also has an important role in laying the foundation for
applied research that leads to innovation. Despite equal importance of both basic and
applied research and blurring of the boundaries between them, various distinctions
have been made between basic and applied research. The OECD (2002) defines pure
basic research as experimental and theoretical work undertaken to acquire
knowledge without looking for long-term benefits; strategic basic research is defined
as experimental and theoretical work undertaken to acquire knowledge in the
expectation of useful discoveries; applied research refers to original work
undertaken to acquire knowledge with a specific application in view; and
experimental development is the systematic work, using existing knowledge gained
from research or practical experience, directed to producing new materials, products
or devices.
5.3.3 Technology transfer and commercialization
Substantial investments are required to transform abstract ideas from scientific
research into commercially viable products. It also requires the universities to be
proactively engaged with industry. Success in technology transfer efforts and
182
commercialization of scientific research depends upon close and continuous
engagement with the industry along with an effective intellectual property rights
(IPR) regime.
5.3.4. Interdisciplinary research
Looking at the technology trends, it is seen that some of the most significant
technologies of the future are likely to be at the intersection of disciplines that are
now just beginning to flourish. Technology, unlike science, is a group activity; it is
not based on an individual intelligence but interacting intelligence of many. Both
these determine the manner in which academic research in the country should be
organised. This requires the formation of inter-disciplinary teams within the higher
education institutions. Such teams could also include researchers from other
institutions and public research laboratories and also from the industry.
Understanding of the linkages between pure and applied research, appreciating the
need for an effective mechanism for technology transfer for its commercialization,
existence of a proper IPR regime, importance of interdisciplinary research – all
would help in providing a foundation for shaping public policy for supporting
academic research in the country.
5.3.5. Research in India in the global context
R&D covers a range of issues too complex and too broad to be defined by anysingle
parameter. However, input measures, such as the number of trained personnel
carrying out R & D work, the level of national expenditure on R&D and output
measures, such as the number of scientific and technical articles published, patents
filed, revenues from royalties and licenses, high technology exports are indicators
that reflect the technological capability of a country. At times, various combinations
of these indicators are used to develop indices to depict the innovative capacity of a
183
nation. In addition, several ranking methods have been evolved to show relative
research performance of various higher education institutions.
Countries Number of
Researchers/million
USA 4484
CHINA 663
JAPAN 5287
INDIA 119
GERMANY 3261
UK 2706
FRANCE 3213
ITALY 1213
BRAZIL 344
RUSSIA 3319
Table: 5:2 Number of Researchers per million people (1996-2004)
Source: University Grants Commission
5.3.6 Expenditure on R & D
Until recently, research, particularly academic research, has been relatively isolated
from the demands of economic utility. Research was considered to have high
externalities. It was, therefore, largely publicly funded. However Today, research is
184
funded both from public and private sources. Expenditure on R & D by a nation is
often used as a proxy to the importance given by a nation to develop its
technological capacity. The share of R & D expenditure from private sources is a
good indicator of the dynamism of the private sector. It shows as to how the private
sector uses innovation to drive national competitiveness.
Countries %of GDP on Research Research &
Development
USA 2.60 16.8
CHINA 1.31 10.1
JAPAN 3.15 13.9
INDIA 0.81 2.9
GERMANY 2.50 17.1
UK 1.85 22.6
FRANCE 2.19 18.9
ITALY 1.16 32.6
BRAZIL 0.98 --
RUSSIA 1.28 6.1
Table: 5:3 Percentage of Expenditure of GDP on Research (1996-2004)
Source: University Grants Commission
Table shows expenditure incurred on R & D activities by ten-top economies and a
few other selected countries for different years depending on availability of data
between years 1996 to 2003. It is seen that expenditure on R & D in India is merely
0.81 per cent. In comparison, it is 2.6 per cent in the US, 3.15 per cent in Japan and
2.5 per cent in Germany. Korea spends around 2.96 per cent of its GDP on R & D,
185
which is at par with top OECD countries. China’s research spending is picking up
and is catching up with the European Union, which lags behind the US and Japan.
5.3.7 Research manpower and doctoral education
In terms of the number of researchers and technicians engaged in R & D activities,
India has merely 119 researchers, whereas Japan has 5287 and the US has 4484
researchers per million of population. Even in absolute terms, the number of
researchers in India is much smaller compared to the US, China, Japan, Russia, and
Germany. The number of technicians in India is however not as small. It suggests
that R & D establishments in India have more technicians per researcher compared
to most of the other countries
The numbers of doctoral degrees awarded in science and engineering in India is a
little over 6000 doctorates, compared to 9000 in China and 25000 in the US. It
increased rapidly from a little over 1000 in 1990 to over 9000 in recent years in
China. In comparison, there has been a modest increase in India. The National
Science Foundation (NSF) - Science and Engineering Indicators – 2002 show that in
the US, about 4 % of the science and engineering graduates finish their doctorates.
This figure is about 7 % for Europe. In India this is not even 0.4 % .
Year 1982-83 1990-91 1999-00 2003-04
Science 2,893 2950 3885 5408
Engineering 511 323 723 908
Table No: 5:4 Number of researchers in India
186
Source: University Grants Commission
5.4 Recent Legislative Reforms in Higher Education in India
After independence the education sector (like agriculture) was in the State List of
Indian Constitution, till the Higher Education was changed to Concurrent List
through 42nd
Amendment during the mid-seventies. Since then there has been
continuing arguments about the implications and consequences of this change.
Those who look at the positive side of the situation point out to the increased
quantum of funds available to higher education in centrally funded institutions
without the same degree of interference from the political or power centers as
happening in the State Funded institutions. The concept of Public-private
partnership model has not been sufficiently evolved for operational purposes. The
present initiatives of the Government of India to resolve many of the critical issues
consist of creating a series of legal instruments.
5.4.aNational Commission on Higher Education and Research (NCHER) Bill
(2011)
This an important Bill for the Creation of the National Commission on Higher
Education and Research (NCHER), conforming to the recommendations of the
Yashpal Committee Report on Renovation and Rejuvenation of Higher Education In
India. The Bill aims to consolidate multiple regulations and improve transparency by
the creation of a single super regulator, the National Commission for Higher
Education and Research, in the place of existing regulators such as the UGC and
AICTE.
It draws critical attention to the fundamental academic weaknesses such as
compartmentalization and fragmentation of knowledge systems, absence of
187
innovation in learning methods, disconnect with the society and too much emphasis
on multiplicity of harmful entrance and qualifying tests. It reflects concerns on the
growing trend in loss of university autonomy damaging the prospect of healthy
growth of spirits of enquiry, creativity, and innovation.
The NCHER is not a regulating or controlling or licensing or inspecting body. Its
primary task is to evolve norms and standards for various aspects of higher
education including assessment and accreditation, while abolishing several of the
regulating bodies dealing with the academic norms for higher education. It restores
to the universities the autonomy and responsibility to implement these norms and
standards. It mandates the NCHER to consult with all States, Union Territories and
other statutory regulating bodies in evolving new policies, procedures, norms and
standards. Among the various other unique functions of the NCHER, one relates to
identification of academic administrators of national standing eligible and qualified
to be appointed as Vice Chancellors of universities or heads of central educational
institutions. Considering the high degree of dissatisfaction in selecting the heads of
institutions, this function assumes special importance. The regulatory functions of
the Commission include specifying requirements for the award of degrees and
diplomas in any field of knowledge and to specify norms of academic quality for
accreditation and benchmarking of higher educational institutions.
An important feature of the NCHER Bill is a provision to review by a committee on
eminent persons the performance of the Commission itself about the extent of
fulfillment of its goals and objectives and recommend suitable actions. This is
somewhat exceptional in the sense that the institutions or organizations created by
acts and statues seldom get reviewed and this is one of the major reasons for their
deterioration.
188
Key features:
► Specifying norms and standards, and requirements for academic quality
► Authorizing institutions to confer awards
► Advising Central/state governments
► Expected outcome:
► Simplification of regulatory environment and enablement of stability of policy
► Promotion of autonomy and innovation in higher education
The national Academic Depository Bill, 2011
The Bill seeks to establish a national database of academic awards in electronic
format through an identified and registered depository.
Key features:
► Mandatory for every academic institution to lodge academic awards with the
depository
► Academic institutions, students and employers to have online access to national
database
Expected outcome:
►Would ensure confidentiality, authenticity, online verification and easy retrieval
of information
5.4. b. Foreign Institutions Bill
The Foreign Institutions Bill appears to have created most controversies.
Unfortunately the criticisms about the Foreign Institutions Bill are based on
189
uninformed misapprehensions. Most of the critics tend to ignore the present ground
reality of more than two hundred foreign programmes offered in India in various
modes. Undoubtedly majority of these are of substandard quality and value. The
regrettable fact is no agency in India has an account of the number of foreign
programmes, their mode of operation, nature of partnership, quality of instruction,
fee structure, protection of students’ interest and so on. Many of them indulge in
glossy and misleading advertisements enticing gullible students with false promises.
Available information on them is based on tertiary sources of reports compiled by
voluntary organizations.
The basic premise of the Foreign Institution Bill is that every foreign educational
service provider engaged in offering programmes leading to degrees and diplomas,
whether already operating in India or intending to do so in future, either on their
own or in collaboration with an Indian partner, must register with a designated
authority giving all necessary information about their competence and credibility.
The Bill attempts to prevent worthless institutions coming in. The apprehension that
the Bill will open the floodgate to all kinds of foreign educational institutions is
totally unfounded. On the contrary, the provision in the bill that no surplus can be
repatriated will effectively prevent the entry of commercially motivated institutions.
5.4. c. The Accreditation Bill
The concern for quality assurance of higher education programme has been acutely
felt partly because of unprecedented growth of institutions and more so because of
the need to meet the ever-changing norms and standards of accreditation so that
mutual recognition of programme among institutions in India or abroad is
streamlined. Within a relatively short period of less than two decades, the
accreditation system in India has been struggling to demonstrate their viability. It is
190
expected that in future every educational programmes would be subjected to
mandatory accreditations, unlike the voluntary process at present. In such an event,
the total number of institutions and programmes that will need accreditation in a vast
range of disciplines is mind-boggling.
The “National Accreditation Regulatory Authority for Higher Educational
Institutions Bill, 2009”, provides for mandatory accreditation of all higher
educational institutions through Accreditation Agencies registered under the
legislation.
The National Accreditation Regulatory Authority for Higher Educational Institutions
is empowered to register agencies that would undertake accreditation of institutions
in accordance with regulations governing academic quality i.e. the quality of
outcomes associated with teaching, learning and research besides quality in
admissions, physical infrastructure, human resource infrastructure, research and
research infrastructure, course curricula, assessment procedures, placement and
governance structures. Existing higher educational institutions and programmes
therein would be allowed a period of three years to obtain accreditation, if not
already obtained. The accreditation of any higher educational institution or any
programme shall be in accordance with the regulations prescribed by the UGC or the
appropriate Statutory Bodyfor different fields of knowledge.
The Authority would be entrusted with the duty to promote the process of
accreditation of higher educational institutions and to monitor and audit the
functioning of the Accreditation Agencies. Besides the Authority would also register
and regulate the working of Accreditation Agencies; prescribe, audit and monitor a
Code of Ethics, including but not limited to a policies on obviating conflict of
interest, disclosure of information, evolving transparency in processes and
191
procedures of accreditation for Accreditation Agencies. It also would require higher
educational institutions to routinely provide reliable information to the public on
their performance, student achievement,faculty availability and qualifications and
research publications and so on.
Only registered Accreditation Agencies have been authorized to undertake
accreditation of higher educational institutions.
5.4. d. The Malpractices Bill
The malpractices occur on a large enough scale in the Indian higher education to
cause major worry about its cumulative effect on the society. Many of these are
wanton disregard of the existing regulations and guidelines, which have large
enough loopholes. Unfortunately in quite a few instances those who are supposed to
watch their proper implementation abet the irregularities. The existing set of
regulations and guidelines are totally devoid of any meaningful penalties to those
who flout them. They were designed some decade ago, perhaps with the assumption
that those involved in educational endeavours will not resort to willful malpractices,
not anticipating the entry of new class of educational entrepreneurs whose greed
exceed limits of decency and propriety as seen in several of the deemed-to-be-
universities, which came into existence with the connivance of power centres that
are equally greedy.
The need for the malpractices bill should be viewed in this context. It lists all those
(mal) practices that will attract the penalty of hefty fines and jail terms. The Bill
requires prior announcement and publication of institutional facilities, faculty,
procedures for admissions and examination, fee structure and so on. Any willful
deviation will attract the penalty.
5.4. e. The Tribunals Bill
192
As it happens so frequently, any attempt to correct the educational anomalies ends
up in the court. Literally thousands of cases relating to higher educational matters
are pending in the courts, some for ages, thereby frustrating corrective efforts and
paralyzing the reform process. The proposed bill to establish the educational
tribunals at the central and state levels can have the benefit of speedy disposal of
such disputes.
193
CHAPTER 6
PRIVATIZATION OF HIGHER EDUCATION IN INDIA
6.1 Introduction
Applied to the education sector, privatization can be seen as part of the wider reform
of the public sector. Education is both a private and social investment. It is therefore
the responsibility of both the individual including the student, his family and even
his employers and the society which includes the community and the state. The areas
of shift in the education sector are mainly decision and responsibility of money,
administration and a relevant curriculum of high quality. Privatization is
management by private sector with total absence of government intervention. Such
institutions generate their own funds through higher fees, user charges and full use
of resources. They survive on the philosophy that they do not have to pay for those
who can pay. Privatization of higher education has emerged in several forms and
types the recent decade in India.
1. Privatization within government higher education institutions takes place in the
form of introducing self-financing courses within government institutions.
2. Converting government aided private institution in to private self financing
institution.
3. Allowing expansion of self financing private institution with recognition and also
without recognition, which may be termed as commercial private higher education
institutions.
6.2. Education and Privatization
For a long time the Indian state, thanks to a socialist mindset, it regarded private role
in providing higher education as anathema. Yet at the same time, the state did not
194
respond to the changing demands of the middle classes for higher education. In the
absence of increased funding or budgetary allocation, the public infrastructure for
higher education could not keep pace with the increased demand. Without any
serious debate or preparation, the state opened the gates for private provision of
higher education. In much of the west, especially in the US, the private providers of
higher education are huge philanthropic and charitable endowments which are of a
non-profit nature. But unfortunately, in India, in spite of the socialist mindset of the
political class, private for-profit higher education institutions were allowed as a
matter of routine. In fact the bulk of the education sector in India, especially higher
education has been privatized on the sly without much of a debate. In an insightful
paper, the noted political scientist Pratap Bhanu Mehta states: quote “this
privatization is not a result of changing ideological commitments of the key actors –
the state, the judiciary or India’s propertied classes; rather, this privatization has
resulted from a breakdown of the state system.” unquote.
Financing higher education has been the key theme in the debate on higher
education the world over. With the landscape for higher education changing rapidly,
one could not think of a stable funding structure for higher education. The future of
financing higher education could not be merely an extension of the present but
shaped by new realties, such as massive growth in enrolment, new mechanism of
cost sharing, the appearance of new cross-border suppliers, the emergence and
growth of different types of public and private higher education providers, distance
education and many other innovations. Consistent with these realties, new and
flexible ways of tackling financing issues in higher education have to be found. This
would require alternative policies and mechanisms to provide answers to these
195
challenges. Sanyal and Martin (2006) have identified the following seven key factors
that would affect the new funding trends for higher education:
a. The massive expansion of enrolment
b. The incapacity of the state to fund such an expansion
c. The vigorous emergence of the private higher education
d. The tendency to cost sharing by students and their parents
e. The importance of accountability
f. The emergence of new providers; and
g. The need for funding by the states to reduce growing inequalities in access.
6.3 Basic Principles of Funding on Education
The cost for higher education is to be essentially borne by the government or
taxpayers (as grants), parents or their substitutes (as tuition fees), students and / or
individuals (by availing loans or doing part-time work) and donors (individuals or
institutional). Donation for higher education is not a universal phenomenon and
plays an insignificant role in financing higher education in most countries. This is
mostly found in the USA and the UK, and in a limited way in a few elite institutions
with wealthy alumni in other countries. The debate, therefore, is essentially whether
the higher education should be paid for by the general taxpayer or its beneficiaries,
i.e., the students or their parents. Financing of higher education by the government is
justified on the ground that education, being a public good or at least a quasi-public
good produces many positive externalities. Positive externalities would mean that
since the society at large rather than the individual benefits from higher education,
the government should finance higher education. It is widely accepted that education
helps in social mobility; therefore it is an effective instrument for promoting equity.
Justifications given for public subsidization of higher education include
196
imperfections in capital markets that inhibit students from borrowing against
uncertain future returns of higher education and market failures due to asymmetric
information. Finally, the production process in higher education is believed to be
subject to economies of scale or decreasing returns to scale. Hence it is considered
more efficient for the government to provide higher education (Tilak, 2005).
Several arguments against public subsidization of higher education have been put
forth (Tilak 2005). The social rates of returns of higher education are found to be
lower than private returns. It is argued that public subsidization of higher education
subsidies mainly accrue to the rich, particularly in elite higher education systems in
India. This is regressive and increases income inequalities by transferring resources
from the poor to the rich. It is contended that with public subsidization by the state,
education institutions become vulnerable to government control; which is not
desirable in higher education institutions. It is argued that since higher education has
very low price elasticity, the cost recovery measures in higher education would not
lead to any significant fall in enrolments. In fact, additional resources available for
higher education would improve access; this would also lead to improvement in
quality. Private provision of higher education is also considered more efficient and,
therefore, desirable. Despite differences, there is no opposition to public
subsidization of higher education per se. However, it is now realized in most parts of
the world that there is a ‘limited’ scope for increased public spending on higher
education; therefore, cost recovery is perhaps the only way forward. Though it may
be desirable that higher education in its entirety is funded through tax revenues, with
competing and politically more popular claim for public funds from other sectors of
economy, this is hardly feasible. There is a general view that primary and to some
extent secondary education are more effective instruments for promoting economic
197
and social development. As a result, even within the education sector, higher
education gets lower priority in budget allocation.
6.3.1 Existing funding arrangements
Higher education in India is primarily funded by the government – central or state
governments and the households. An optimal level of funding is required for
maintenance of reasonable standards of higher education. This may vary across
subject areas and across the country. However, with a view to estimate the overall
requirement of funds for higher education, an average unit cost of Rs.60000 per
annum per student is taken. Based on this norm, for an enrolment of 10.48 million,
an annual expenditure of Rs.628.8 billion is desired on higher education in India.
Additional funds are required for new infrastructure and facilities for expansion of
enrolment. Further, living and transport expenses are borne by the students and
parents directly.
Against the desired expenses of Rs.628.8 billion on higher education, the
government spends around Rs.190 billion per year. This figure has been arrived at
on analysis of the budgeted expenditure on education by the government for the year
2004/05. The budget estimate – 2004/05 for higher education (including technical
education) for the central government and the state governments taken together was
Rs.131.4 billion. Taking into account an increase of five per cent per year as per
historical rate of increase, this is estimated at Rs.145 billion during the current year.
It is estimated that the government spends another Rs.45 billion every year on post-
secondary education in the agriculture and the health sectors. Altogether, the central
and the state governments spend Rs.190 billion per year on higher education in
India.
198
Direct estimates of private spending on higher education in India are not available.
Based on estimates by compiling data on the share of tuition fee income in the
annual budgets of higher education institutions, it is seen that the contribution of
households as tuition fees is around Rs.186.75 billion per year. The sources of
revenues other than tuition fees being small are inconsequential. These have been
ignored in the estimates. The total annual expenditure on higher education works out
to be Rs.376.75 billion per year Thus, against a desired expenditure of Rs.629.8
billion, Rs.376.75 billion (around sixty per cent) per year is being spent by the
government and households together. Thus, there is a shortfall of about forty per
cent. This shortfall would obviously get reflected in the poor standards of higher
education in the country.
While estimating the shortfall, an average unit cost of Rs.60000 has been used. This
is a conservative estimate based on author’s own assessment of handling university
finances in India. In 2004, a group of vice-chancellors had estimated the unit cost at
Rs.100, 000 (AIU, 2004). Cost of higher education in India varies very widely
across institutions and as per discipline and subject of study. In some cases, the unit
costs are as high as Rs.200, 000 per student and in other cases, this is as low as few
thousand rupees. The average unit is therefore indicative. The fact that the higher
education in India is severely under-funded is corroborated a study by Tilak (2004).
He found out that with the increasing enrolments in recent years, there has been a
decline in per student expenditure in higher education. This decline has been drastic
in the 1990s. He estimated this decline at 28 per cent points over a 12-year period
from the year 1990/91 to 2002/03.
199
6.3.2 Public funding on Higher Education
Public expenditure on higher education (including technical education) has been less
than half per cent of the GNP for over two decades. This constitutes around twelve
per cent of the total public expenditure on education compared to around twenty per
cent prevalent in most other countries (CABE, 2005b). Of the total government
support for higher education, only about one-fourth comes from the central
government7. The contribution of the central government to the overall expenditure
(including household expenditure) on higher education in India is around ten per
cent compared to more than thirty per cent by the federal government in the USA
On analysing the role of the central government in funding of higher education, it is
seen that the funding is lopsided and limited. Eighty five per cent of the total central
funding to higher education (including technical education) goes for supporting only
about three per cent of students enrolled in around 130 out of a total of 17625 higher
education institutions (HEIs) in the country. Even among the institutions funded by
the central government, certain institutions like the Indian Institutes of Technology
(IITs) are more liberally funded than others.
University Grants Commission (UGC) is the apex body for higher education in
India. It is also the main funding agency of the central government. Whereas, around
forty two technical institutions are funded by the central government directly, all
others are funded through the UGC. Bulk of the expenditure on higher education is
on revenue account and the capital expenditure is a negligible proportion of the total
educational expenditure. Nearly sixty five per cent of the budget of the UGC is
meant for meeting the operating expenses of the central universities and Delhi
colleges. The remaining 35 per cent plan budget is spent for the system at large.
With only Rs.6 billion for about 5500 institutions, the level of funding is
200
insignificant. It is also skewed in favour of central university system. Somehow,
there is an impression that only the central university system is the primary
responsibility of the UGC and the central government. This is evident from the fact
that an additional amount of nearly Rs.5 billion allocated by the Planning
Commission in 2005/06 was almost entirely provided to central universities.
With a view increase capacity in higher education institutions to accommodate
students from other backward classes, an investment of nearly Rs.80 billion is
planned. This amount would again go mainly to the central institutions. In terms of
its mandate, UGC is expected to inquire into the financial requirement of the
universities (and colleges affiliated to them) and advise the governments to provide
the same – a role that UGC never performed - perhaps for reasons of such exercise
being futile due to the inability and unwillingness of the governments to meet the
genuine requirements of higher education institutions in the face of financial
constraints. The private un-aided universities and colleges are expected to be self-
financing institutions and are expected to meet all their expenses from their own
revenue sources, which is mostly from tuitions. They are not eligible for any public
funding or UGC grants. Of the remaining 278 universities and 9975 colleges, 78
universities and 4648 colleges are not eligible for UGC grants; though these
institutions get some grants from the respective state governments (Figure 7). These
institutions either do not meet the minimum standards to be eligible for UGC grants
or have not bothered to get UGC grants because of its trivial amount. In recent
years, UGC’s policy on the eligibility for its grants has become somewhat restrictive
because of constraints of funds. In all, majority of higher education institutions are
not eligible for central funds. Those who get central funds find that the amounts are
very small. A large numbers of institutions do not get any public funds at all.
201
Only 130 institutions of higher education get operating budget support from the
UGC / central government. More than 90 per cent of the grants received as operating
budget go into salaries, pension and other per-emptive claims like water, electricity
and rental charges etc. and very little is left for library, laboratory and other
academic activities. Other institutions eligible for UGC grants get only the plan
budget support for capital expenditure; even that is hardly substantial. On an
average, a college gets merely around Rs.0.2 million or so each year whereas a
university gets Rs.5 to 7 million per year as a development grant.
Most public funding for higher education is institution-based. It has an input based
deficit financing basis that is not only inefficient, but promotes status quo-ism. On
an average, nearly eighty-five per cent of all public spending on higher education
institutions is on salaries and allowances. Many old institutions have huge pension
bills. Very little is spent on academic activities. In many institutions, the number of
nonacademic support staff far exceeds the number of academic staff. Policies
adopted by most funding agencies in India adjust income from internal resources –
mainly tuition fee income from the annual grants leaving no incentive for
institutions to raise internal resources or raise tuition fees.
6.3.3 Fund Allocation Mechanism
The issue of the fund allocation mechanism is as important as the level of public
funding. Several problems are faced in fund allocation mechanism. Austerity
measures to control unproductive expenditure in the government are often extended
to the government funded higher education institutions. This results in absurd
consequences. Despite government policy to encourage institutions to raise internal
resources, such resources when raised are adjusted from the annual grants of the
institutions leaving them with no incentive to raise resources. Fund allocation is
202
done on deficit basis. This neither promotes cost-effectiveness nor internal resource
generation. The Punnayya Committee (1992/93) pointed out that the existing
mechanism of funding for higher education perpetuates inefficiency and suggested
that the grant-in-aid system should be suitably modified to reward quality, efficiency
and innovativeness. The committee recommended the replacement of the existing
practice of negotiated block grants based on historical allocations by policy driven
funding based on unit cost method. In 1997, the Pylee Committee was set up to
develop a mechanism for computing unit costs. Apart from changing the funding
mechanism, both the committees also advocated cost recovery by suitably revising,
rationalising and enhancing tuition fees. Later, the Anandkrishnan Committee that
examined the issue of maintenance grants to Delhi colleges funded by the UGC
recommended that annual grants for the colleges should be based on faculty strength
guided by optimum student- teacher ratio and teachers’ work load.
Despite specific recommendations of these committees, the funding of higher
education institutions in India continues to have a historical or political basis. The
amount of funding that a higher education institution receives is based largely on
what they received the year before or how powerful their friends are in the
government or funding agency. As Hauptman (2006) points out, this approach tends
to be more input driven and is largely based on staff costs and institutional
infrastructure needs. Whereas in many countries there is a shift to policy-driven
funding by introducing policy variables into funding process (as in UK) or
performance–based funding that recognize outputs rather than just inputs (as in US),
funding process followed in India continues to on the basis of historical allocation.
With a view to achieve specific targets for improving quality, spur innovation and
develop the management, several countries have effectively used the competitive
203
funding process. The US was one of the first countries to introduce a competitive
fund in 1972, with the creation of a Fund for Improvement of Post-Secondary
Education (FIPSE). Later, many other countries followed. In India, UGC provides
competitive grants to the eligible universities and colleges (those covered under
Section 12B of the UGC Act) under various schemes to promote equity, relevance,
excellence and research. Though these competitive grants have definitely helped the
universities and colleges in taking up many new activities, no objective evaluation
of such competitive grants has been made. The amount of such grants is not only
meagre but is often cornered by a small number of eligible institutions.
With the increasing cost of higher education, strategies of helping students and their
families to pay for higher education have become increasingly important component
of financing higher education. These strategies include aid, which is funded or
sponsored by the government; provided by the institutions themselves; or given by
private individuals or organizations. In many countries (such as the US), student-
based funding particularly to support students from poor background is a major
responsibility of the government. In India, such an arrangement is nearly absent. A
few schemes started from time to time are nothing but tokenism and do not have
much impact. A detailed analysis of the same is in Section 2.3. In addition, in
several countries, governments support individuals rather than institutions
particularly researchers through competitive research funding. In sum, revisiting the
fund allocation mechanism for higher education in India is as important as
increasing the allocations. There is a need for creating clear incentives for enhancing
institutional efficiencies and improving productivity. Public funds should be used to
address concerns relating to affordability due to rising cost of higher education.
204
6.4 Privatization of Education in India
The 1990s saw major developments and turn of events in higher education in India.
According to Jandhyala B.G. Tilak of the then National Institute of Educational
Planning and Administration (Privatization of Higher Education in India, 2002),
public funding for higher education should be drastically reduced. In 1997, the
Government of India in its proposals for subsidies accorded higher education the
status of a ‗non-merit good‘ for the first time while elementary education remained
‗merit-good‘ which need not be subsidized by the State at the same level as merit
good. However, the road ahead for India is directly linked to creation of quality
higher education institutions in a big way to meet the challenge of being the
knowledge hub, which India is fast losing. The Government resources for higher
education are simply not enough. Government supervision of higher education is
dismal. Recourse to quality private higher education, both university and non-
university, India needs to have a proactive demand based policy towards private
higher education including foreign institutions/universities desirous of setting up
campus in India or entering into joint-ventures. Gradually there has been a general
trend towards liberalization and opening of education sector to private initiative.
Steps such as offering tax concessions/fiscal incentives for setting up campuses are
under consideration. Thus the era of serious thought on privatization of higher
education in India has began.
6.4.1 Meaning of Privatization
Privatization connotes a wide range of ideas. Privatization implies induction of
private ownership, management and control of organizations. Privatization can
imply deregulation meaning thereby lesser control of the government. It refers to
expansion of private sector and reduction of public sector. It also means that areas
205
reserved for the public sector will be opened to the private sector. The shift towards
privatization reduces the role of the government and increases the role of the private,
cooperative and local government. The areas of shift are mainly decision making
and responsibility of money and administration.
H. E. Institutions Percentage
State Institutions 35.60%
Central Institutions 0.50%
Private Institutions 63.90%
Table: 6. 1 Presence of Higher Education Institutions in India (2011-2012)
Diagram no.6. 1. The number of Higher Educational Institutions by ownership
(2011-12)
35.60%
0.50%
63.90%
State Instituitions
Centarl Institutions
Private Institutions
206
A brief look at the public higher education landscape reveals the privatization exists
in one form or another on almost every college campus. Broadly defined,
privatization is the act of reducing the role of government or increasing the role of
the private sector in an activity or in the ownership of assets‖ (Savas in Gilmer,
1997). It is thought that privatization will lead to better higher education product at a
reduced cost to the exchequer.
6.4.2 Trend towards privatization
Growth trends in India show that the higher education sector was controlled by the
government till about 1980. After that there has been a clear trend towards
privatization of higher education. .. Whereas the number of public institutions – both
government and aided institutions has increased only marginally, private institutions
have increased significantly. Nearly 30 per cent enrolment is in private unaided
institutions, which do not receive any grants from the government. The growth has
been predominantly in institutions offering professional courses. Private universities
and foreign education providers that financially independent are also emerging on
the scene. In future the number of government and private aided universities and
colleges is not likely to increase significantly while the number of private unaided
higher education institutions may increase.
H. E. Institutions % of Enrollment
State Institutions 38.60%
Central Institutions 2.60%
Private Institutions 58.90%
Table No. 6: 2 Percentage of Enrollment in Higher Education Institutions in
India (2011-2012)
207
The Diagram no: 6:2 The number of student enrollment in India in various
institutions
According to Bray (1998), privatization, by definition, is a process, rather than a
state. It is the process of moving from less public ownership financing and/or control
to more private ownership, financing and/or control. Therefore, in privatization, the
dimensions of ownership, financing and control are present. In the Indian context,
the dimension of control will have to be viewed from both the academic and
administrative angle. Whereas administrative control is normally linked to
financing, the academic control would depend on whether or not an institution has
degree-granting powers. The understanding of public versus private ownership and
financing and academic and administrative control of various types of higher
education institutions in the country is essential for studying the dynamics of the
Indian higher education system.
Financing in this case refers to the meeting the operating costs and is not related to
the initial investment. Promoter either government or a private entity makes initial
investments in infrastructure and facilities of a university or a college. This gives
them the ownership. These are usually in the name of the government or the non-
38.60%
2.60%
58.90%
State Instituitions
Centarl Institutions
Private Institutions
208
profit society or trust that sets up the institution. This is not of much consequence
because infrastructure and facilities of educational institutions can not normally be
alienated and put to any alternate use. Thus, the source and manner of meeting day-
today expenses of the university or college determines its financing pattern. The
private unaided universities and colleges are financed through ‘donations’ and the
like, most of which is paid in cash and either not accounted for or only partly
accounted for in the accounts of the institutions. These payments, mostly at the time
of admissions are referred to as capitation fees. Despite several laws being passed
and interventions by various courts over the years against these practices, the
practice of capitation fees continues.
6.4.3 Role of the private sector in higher education
Higher education, with its conditions of rivalry, excludability and rejection, as well
as near complete appropriation of returns by private individuals has been viewed by
some economists as characteristic of a private rather than a public good, and
therefore subject to market forces. However, due to the presence of externalities and
information asymmetries, there are divergent views on whether the provision of
higher education should be in the public domain or in the private domain. It is
necessary to view both sectors as complementary providers, with the public sector
meeting merit demands and education in non-employment oriented courses or pure
research. Enrolment pressure, rising unit costs of higher education, and competing
pressures public finances have encouraged growth of the private sector in filling
gaps in India. Declining public sector expenditures, poor facilities, and a lack of
capacity also build a strong case for a greater role for the private sector. Moreover,
the public sector higher education system displays a lack of flexibility in supply
response for meeting the rapidly-changing needs of a fast-growing Indian economy.
209
According to a document of the International Finance Corporation on investing in
private education, the private sector can be a partner in the provision and financing
of education due to the following reasons:
• Helping alleviate financial constraints by expanding the capacity of the
sector
• Improving equity by freeing government expenditure for primary and
secondary education
• Enhancing social mobility by contributing to the growth and strengthening of
the middle class
• Promoting efficiency and effectiveness
• Promoting diversity and encouraging innovation
Private support can thus help governments overcome financial,
administrative and technical constraints. While the private sector can only
supplement and not supplant public expenditure on higher education, its role has
been increasing in all parts of the world. This is especially true of courses with
sharper economic linkages and therefore greater interest from students, making the
willingness to pay for them highly inelastic to cost. Several factors have encouraged
this trend: the growing demand from beneficiaries for quality in education; rising
incomes; lower cost of student financing; new skill demands from the marketplace;
declining public sector expenditures, and others. There is a need for ensuring quality
and integrity in private higher education through competition, standards, and
consistent polices. In the government-funded institutions as well, there is urgency
for raising quality levels. Policies need to relate to financing, autonomy, quality,
globalization, faculty, integration with industry, technology, and research.
Year 2001 2007 2012
210
Percentage 42.60% 61.80% 63.90%
Table No. 6:3 Growth of private Self financing Institutions as a % of Total
Number of Institutions over the years.
The Diagram No: 6: 3Growth of private Self financing Institutions as a % of
Total Number of Institutions over the years.
At present, nearly 80% of all institutions and enrolments are in the private sector, a
trend that has picked up since the early 1980s. Vocational training in the private
non-university sector is also huge. However, there is a demand supply mismatch in
education arising from lags, inadequate information, and societal expectations from
higher education. Skills shortage is accompanied by graduate unemployment of
17%, comprising 5.3 million of the total unemployed population of 44.5 million.
Many of these are considered unemployable by industry due to poor skill levels. The
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1 2 3
42.60%
61.80%
63.90%
211
formal education sector provides no training for emerging sectors such as
biotechnology, hospitality, fashion designing, NGOs, etc. as also the gamut of ‘soft
skills required in the work-place. The stress is on written instruction, or theory, and
written testing systems, with little applicability to practical work-place situations.
The demand supply mismatch in higher education is further exacerbated by outdated
curriculum.
UGC is supposed to update curriculum every decade, but lags in the activity.
Universities have rigid systems incapable of changing curriculum due to their own
structures and complex control mechanisms by multiple agencies, described earlier.
Private sector supply response has far more flexibility to suit market conditions.
Table No. Growth of enrollment in private Self financing Institutions as a % of
Total Number of Institutions over the years.
Year 2001 2007 2012
Percentage 32.90% 54.70% 58.90%
Table No. .6:4 Growthin enrollment in private Self financing Institutions as a
% of Total Number of Institutions over the years.
212
Diagram No. .6:4 Growth of enrollment in private Self financing Institutions as
a % of Total Number of Institutions over the years.
6.4. 4 Factors Responsible for Privatization of Higher Education (Need for
Privatization)
1. Need for competitive efficiency: Main justification for privatization rests heavily
on the grounds of efficiency to promote a more competitive economic environment.
Operation of public sector enterprises is considered inefficient. It is believed that
private ownership and control are more efficient in terms of resource allocation and
work.
2. Growth in population: India has a population of nearly one hundred and seven
cores. In order to provide to a large number of people, more private institutions are
needed. To fulfill the demand for higher education of young people in the country
privatization of higher education is needed.
3. Financial burden on government: Higher education in India is in financial stress.
The government can no longer bear the financial burden of public enterprises.
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1 2 3
32.90%
54.70%
58.90%
213
Current spending on education in India is not more than 3.5% of GDP. The center
itself concedes that the minimum should be 6%. Very little is being spent on higher
education. This compares unfavorably with the international levels. Therefore there
is a need to evolve policy through which private resources are mobilized.
4. Education is an economic good: Education is no more being as a social service
but as a necessary economic input. Investment in education is treated as a factor
contributing to the development of human resources. In this effort private initiative
can help since the private sector is the beneficiary of the knowledge industry.
5. Quest for quality: Private institutions do not require long procedures for
procurement of human as well as material resources. In order to purchase and
maintain good qualitative infrastructure and equipment like furniture, buildings,
different types of laboratories and qualified and competent academic staff, who can
be paid as per the demand, there is a need for privatization.
6. Rapid growth of school education: Growing number of schools naturally push
the demand higher education which the government is not able to provide.
7. Fulfilling the need for skilled manpower: There is very little initiative from the
public sector due to limited freedom. Private institutions are free to initiate modern
and advanced courses in order to fulfill the demand for subjects which facilitate
economic development of the market and the nation.
8. Curtailment of corruption: In order to control the corruption in the government
sector, private sector is much needed. Privatization stops the corruption to some
extent and brings about some discipline. As a result there will be capacity
utilization.
9. Desire for more autonomy: Privatization of higher education will provide
autonomy to institutions and there will be less dependency on the government. This
214
will remove political interference in areas of administration, management and
finance.
10. Synergy for information based economy: In the present times there is a need for
interaction between UGC, academic institutions of higher learning, industry, R&D
institutions and funding agencies. This could be achieved by a synergy process
wherein they will be partners in various activities, complementing each other in
reaching their visions, objectives and goals.
11. Technological developments: Information revolution has been brought about
and strengthened due to technological developments such as microchips, genetics,
communications, robots, lasers, growth of satellite TV and computer technologies.
Due to limited resources public sector cannot meet the demands of the industry and
other sectors of economy. Thus private sector can undertake to train manpower in
technology and respond to market demands.
12. Greater responsibility with the recipients of education: Over the years
education has been considered as a free public good thereby devaluing education.
Privatization of education where the recipient will bear the full cost will help bring
greater responsibility in them. As a consequence, students are likely to demand
greater efficiency and quality in teaching.
Privatization, by definition, is a process, rather than a state. The term may also
encompass a wide array of models. In some systems, privatization has arisen as a
result of deliberate policy, but in others, it is the result of unplanned changed.
Gilmer‘s (1997) model of production and finance rely on the idea that production
and finances are of primary concern since they are uniquely distinguishing
characteristics of privatization. This four part typology separates privatization into
four models. 1. Public production with public finance. This is typical government
215
run and financed model that public higher education operates from a large extent
through decreasing extent. 2. Public production with private finance. This is a
diversification of revenue model that includes such schemes as increasing tuition
and user fees and other revenue generating strategies in higher education such as
private fund raising. 3. Private production with public finance. This model includes
a myriad of modus operating including contracting, de regulation, franchises, grants
and subsidies and vouchers. 4. Private production with private finance. This area
includes load shedding and divesture. This form of privatization occurs when the
government decides to stop providing a particular service and leaves it to the market
to provide the service.
6.4.5 Advantages of Privatization
1. Privatization will enhance the following elements in the field of education if
properly executed:
Decentralization and de-bureaucratization of educational institutions
Initiatives in educational reforms
Innovativeness in teaching and evaluation
Tailor made services and provision of wide choice of courses and subjects to
students
Competition
Quality education and training
Shaping of the curriculum according to global, national and local needs
Availability and better maintenance of resources
Transparency in all procedures
216
Fulfill the need of the country in liberalization, privatization, and
globalization.
Utility of human and physical resources in proper way
6.4.6 Fears w. r. t. Privatization
Privatization could cause the following in the field of education if not properly
executed and regulated:
Privatizing education will adversely affect the poor
Undermine equity, diversity and openness
Does not address issues of equality, fairness and responsibility
Exorbitant fees will deprive many of availing education
Accountability problem will arise
Courses in humanities and social sciences will be sidelined due to no
economic gain
Civic and democratic values may not get passed down
Apprehensions about job security and retrenchment of staff
Cost saving will lead cost cutting
Collected funds may be misused by the owners
Favoritism towards family members and friends
Benefits remain unproven
6.5 Current Trends in Privatization of Higher Education
In view of the expanding role of World Trade Organization (WTO), higher
education has become an item under it. Foreign universities are being encouraged to
come to India to set up independent operations or collaborate with existing Indian
217
Institutions, colleges/institutes. There is no need for government approvals in FDI in
education. While a regulatory set up is required to ensure that there is no cheating or
hoax, the fixation of fees should not be in state control. On the issue of admissions,
private player may be given the discretion for admission, but will have to justify
merit. Perhaps a Tribunal on Admission Disputes can be set up for those aggrieved
by the admission policy of an institution.
Direct estimates of private spending on higher education in India are not available.
Based on estimates by compiling data on the share of tuition fee income in annual
budgets of the higher education institutions, it is seen that the contribution of
households to the revenue stream of higher education institutions in India is around
50 per cent, i.e. around Rs.190 billion. This is surprising considering that 43 per cent
of the number of institutions and 30 per cent of enrolment is in private unaided
institutions; many public institutions have self-financing courses and most public
institutions have high tuition fees.
Another way of estimating private spending on higher education is using National
Sample Survey (NSS) data. As per NSS (2003), there has been sharp hike in private
spending on education over the last decade or so. The per capita private expenditure
on education almost quadrupled from 1.2% in 1983 to 4.4% in 2003. In urban areas,
the growth was a strapping 200% from 2.1% in 1983 to 6.3% in 2003. The rural
sector showed a high growth of 262% from a mere 0.8% in 1983 to 2.9% in 2003. In
absolute terms, households spent nearly Rs.335 billion on education in 2003. It is
estimated that almost half of it goes into higher education. This works out to be
comparable to the figure mentioned above.
There are however wide interstate variations. Private spending is higher in richer
states, where government spending also tends to be high. Interestingly, private
218
spending as a proportion of the total spending on education tends to be higher even
in poor states. The reason is possibly due to the fact that government spending on
education in poor states is so low that households need to spend more to fill in this
gap. It would be fair to expect that a significant amount of this flows to the higher
education sector.
6.6 Cost Recovery Measures in Private Funding
The UNESCO WCHE declaration emphasized that the funding of higher education
requires both public and private resources. This has been the rationale for adoption
of policies towards shifting of some of the costs of higher education from the state to
students, graduates or their families. There is now a global trend towards cost
sharing phenomenon in which the burden of the cost of higher education is shifted
from exclusive or near exclusive dependence on the government or taxpayers to
some reliance on parents and/ or students. It is generally feared that such shifting of
cost of higher education from the taxpayers to individuals would damage access and
equity. International experience however shows that introduction of tuition fees need
not damage access and equity, provided they are linked with well-designed student
support system, including targeted grants and student loans.
There are seven different forms of cost sharing arrangements seen worldwide. These
are: (i) introduction of tuition fees (in China in 1997, in Britain in 1998, in Austria in
2001, and most recently in Germany in 2005); (ii) introduction of a dual tuition track
with high level of fees for less meritorious students with capacity to pay (practiced
in Russia, most of Eastern and Central Europe, India, Uganda), (iii) sharp rise in
tuition fees (public universities in the United States increased their in-state fees by
an average of 10 per cent in 2001-2002. Several institutions in India like the Indian
Institute of Technology and the Indian Institute of Management have increased their
219
fees sharply in recent years); (iv) imposition of user charges (happening in China,
several African countries like Ethiopia, Mali and Guinea and the Nordic countries);
(v) diminution of student grants or scholarships (done in Britain, Russia and most of
the Eastern and Central countries);(vi) increase in the effective cost recovery of
student loans through various measures, and (vii) encouragement of a tuition-
dependent private higher education sector. This has happened in Japan, Korea, the
Philippines, Indonesia, Brazil and some other countries in Latin America. This has
increased the participation of parents and students in cost- sharing, and even in
profit- making institutions.
According to Johnstone (2006) cost-sharing is now a worldwide phenomenon. This
takes the form of either tuition fees or ‘user charges’ to cover the living cost of
students. This should be seen as shifting of financial burden of higher education
attendance from the general taxpayers to the students and their parents. In the face of
financial crisis faced by higher education systems worldwide, cost-sharing is no
more an option, but an imperative. However, designing of an effective cost-sharing
programme is essential to mitigate the risks that may be associated with it. Cost-
sharing in the form of introduction of tuition should ideally be preceded by
provision for means-tested financial assistance programmes as well as generally
available students’ loan programmes.
6.7 International comparisons
The amount of funds allotted to higher education determines both the size and
quality of higher education system in a country. There are several ways to measure
the overall level of financial commitment to higher education, each with its strengths
and weaknesses. While comparing the public expenditure on higher education
described as percentage of gross domestic product (GDP), it is seen that there are
220
few differences between the developed and the developing countries. Both the
developed Scandinavian countries and poor African countries like Lesotho and
Barbados spend a high percentage of their GDP on higher education. Whereas the
public expenditure of 0.37 per cent of GDP on higher education is comparable to
that of Korea (0.34%), China (0.50%), and Japan (0.54%), it is much lower than the
US (1.41%), Germany (1.13%), and UK (1.07%) (Table A10).The differences in the
level of GDP and also different participation rates in higher education mask the
relative efforts of different countries towards higher education.
Another measure is to compare the public expenditure per student across countries.
It is noted that whereas developed countries spend close to US$10,000 per student
per year, developing countries spend less than US$1000 per student. India spends
merely US $400 per student. Even with currency adjustment, it works out to be
much lower than the developed countries or even China (at US$2728 per student).
Here again, at the very top of the list of countries with the highest per student
spending is an odd mix of developed and less-developed countries. High fixed costs
in universities result in very high cost per student in very small higher education
systems (Hauptman, 2006),
A still better measure to analyse financing of higher education by different countries
is to combine the elements of the previous two and considering the amount spent per
student as a percentage of GDP per capita. This compares both how many students
are enrolled and how higher education spending relates to the overall economy. This
also takes care of currency adjustments. As a general rule, it less than 50 per cent for
developed countries, while for developing countries it is generally more than 50 per
cent; in some cases it might even exceed 100 per cent. For India, this is 83 per cent,
compared to 53 per cent in China, 26 per cent in US, 31 per cent in the UK, 17 per
221
cent in Japan and merely 5 per cent in Korea (Table A10). Despite the relative effort
of the governments of Korea and Japan on higher education being small; these
countries have already achieved universal higher education. In these countries, there
is a sizeable private higher education and large part of higher education spending
comes from private sources, mainly from the households. The USA is a unique case,
where despite 66 per cent of all expenditure being met from private sources, the
government spends a huge amount on higher education (Usher, 2006).
It is seen that 84 per cent in Korea and 57 per cent in Japan of all expenditure on
higher education comes from private sources. In India, as per the analysis done in
the previous section, nearly 50 per cent of the higher education expenditure comes
from private sources. This is in fact more than many of the developed nations. For
instance, only around 29 per cent of the funding for higher education in UK, around
14 per cent in France and less than 10 percent in Germany comes from private
sources. Jong Bloed (2005) notes that the countries such as the United States, Korea,
Canada, and New Zealand that have been able to channelise a higher percentage of
GDP into higher education raise substantial share of funding from alternate sources.
These alternate sources are mainly students’ contribution or private sources. Despite
the limitation of comparable data on financing higher education across countries, it
becomes clear from the analysis above that only a very small percentage of India’s
GDP is spent on higher education and the country spends a very low amount on per
student basis. According to Mazumdar Committee Report (2005), resource
requirement for higher education from public sources ought to be 1.5 per cent of
GDP.
The report suggests that the total annual budgetary allocation for higher education
(including technical education) needs to be raised to Rs.455.52 billion. A resource
222
gap of Rs.351.69 billion has been worked out by the Committee. Despite its merit, it
is impractical to expect the government to find such huge resources to allocate for
higher education to bridge this gap. But there is definitely a strong case for
enhancing the public funding for higher education in India. Relative effort made by
the country for higher education being already large and in the face of competing
demands on public resources, the scope for such enhancement is limited.
Considering this, the increase in overall expenditure on higher education may
therefore have to be from a greater contribution from students and parents. In the
final analysis, there is a case for increasing the funding for higher education both
from government sources as well as private sources.
6.8 Affordability of Higher Education
Globally, responsibility of bearing the cost of higher education has been shifted
from the government (or taxpayer) to the parents and students. The limitations of
public finance make charging of tuition fees inevitable. In some countries like
Australia and the UK, this shift is deliberate or policy driven. In other countries like
India, this is happening on its own, as the consequences of resource crunch faced by
public institutions on the one hand and the emergence of a significant private sector
on the other. This shift is making higher education opportunities beyond the reach of
a large section of the population. Therefore, this has to be accompanied with the
introduction of suitable grants and loan programmes that are designed to be, as
closely as possible, both need based and generally available to the academically
prepared students without regard to the wealth or credit-worthiness of their parents
or their individual career and earning prospects.
There are many government schemes of scholarship and free-ships available for
scheduled castes, scheduled tribes, other backward classes, and even women for
223
higher education. These schemes have been floated by the central government and
the state governments from time to time. In some cases, schemes to support the
weaker sections of society have also been started by institutions themselves. In spite
of a plethora of schemes, the overall coverage is insignificant. The amount spent on
scholarship schemes is a pittance. Not only it is less than half a per cent of the total
expenditure on education, it has been steadily declining over the years. This was
merely Rs.250 million in 2003/04 (CABE Committee, 2005b). Most scholarship
schemes, being blind to the needs, do not necessarily cover the poorest students. The
amount of scholarship does not even cover full tuitions in many cases, particularly
for professional courses. In many cases, due to cumbersome disbursement
procedures, the assistance is not received in time. There are also reported leakages in
disbursement. Despite specific reference in the Common Minimum Programme of
the UPA Government that nobody would be denied professional education because
he or she is poor, no major scholarship scheme for poor and needy to promote equity
has been initiated. In sum, it is noted that despite the rising cost of higher education
making it beyond the reach of a large section of Indian society, there are little or no
efforts to initiate steps to make higher education affordable to all.
From the above discussion, it is clear that the overall funding for higher education in
India is grossly inadequate. This is reflected in the falling standards of higher
education that are endemic in the country. The role of the government in funding
higher education is getting marginalized. Budgetary support for higher education did
not increase to commensurate with expansion of enrolment in higher education in
India. A large part of the higher education system is not even eligible for public
funding, making the situation worse. The funding mechanism also requires a re-
look. The role of central government in funding of higher education is limited and
224
uneven. With handful of central institutions that cater to less than two percent of the
students getting nearly eighty five percent of central allocation for higher education,
while other institutions that cater to much larger numbers are starved of funds, there
is something unjust about the current system of allocate of central resource for
higher education. State governments are required to provide bulk of the public
funding for higher education. Faced with financial crunch, state after state are
tightening their purse strings for higher education and advocating upward revision of
fees. Even states like West Bengal10 support the view that the colleges should try to
be self-sufficient.
It is seen from experience of the last two decades that the expansion of capacity in
higher education has been largely through private initiatives. This will continue to
be so. Government funding has to be used for revitalising the starved public higher
education system. Public higher education would require significant one time
investment and continued support. It needs to be realised that in a knowledge
economy the size and growth of quality higher education would be the main
differentiating factor between a dynamic and a marginalised economy. Therefore
larger public investment in higher education is vital.
6.9 Action Points for Making Higher Education Affordable for All
With a view to ensure that no one with aptitude and desire is denied access to higher
education because he / she cannot afford it, there is a need to introduce suitable grant
and loan schemes. There can be variety of grants and loan options designed to
address this problem. For example, Australia offers a student loan programme. This
loan is repaid through temporary increases in the income tax of programme
participants. Consequently, the money can be continuously recycled to finance the
education of future students. The best system is one where students can obtain
225
sufficient, but difficult to default, loans. In this way, all students would have the
opportunity to obtain a higher education degree. Specific recommendations to
ensure affordability of higher education for all are as follows:
• There is a need to introduce a scheme of income contingent loans to make it easier
for students from poor backgrounds to participate. This loan arrangement has built
in insurance against inability to pay and help low earners. The provision to write off
a fraction of loan for each year of service in the rural areas or national R & D system
could be provided.
• The practice of deferred payment of fee on graduation and employment with a risk
of unemployment / under employment being transferred to the Government exists in
any countries like Australia to address the equity issue. This also takes care of the
problem of student indebtedness.
• Income contingent loans could be provided through a wide range of private and
public sector lenders with a third party servicing of loans. This is a mature and tried
concept where lenders outsource their student loan servicing function to an outside
specialised agency. This results in better recovery, effective use of funds, efficient
student financing supply chain right up to improved and timely collection of
repayments. An appropriate framework can facilitate securitisation of student loans
so that fresh money keeps flowing at relatively lower costs.
• Since student loans are inherently risky; the government is required to share part of
the risk of a student loan programme. Such loans should be widely available to all or
most students in need. Risk can be lessened through a judicious use of cosignatory
requirements, with government as a primary guarantor only for families with
insufficient collateral, and then a secondary guarantor for families who are able to
cosign the loan and bear part of the risk. This can provide the much-needed impetus
226
to public and private lenders to lend money to students based on market forces.
Multilateral and bilateral agencies like the World Bank, Asia Development Bank
etc. have been partners with the Governments world over for a similar initiative.
They could be receptive to extending similar support to the Government of India.
The first step towards putting in place a system of income contingent loan scheme
with government guarantee would be to commission a detailed study on existing
student loan portfolio and its performance based on various criteria. A Student Loan
Clearinghouse will have to be created to link all stakeholders through a transparent,
data driven, credible and validated system. This would be an essential information
infrastructure for the success of this scheme.
• Many countries in the world find tax cuts rather than tax increase as a good
solution to higher education. The people who would benefit the most from this are
the middleclassfamilies who are overburdened with education costs. It would cost
the government revenue in the short term, but a college-educated worker has
significantly more taxable income than he or she would have otherwise. Taxing the
money individuals spend on education is not the government's best source of tax
revenue.
In sum, the fee structure for higher education in India needs to be rationalized with
free-ships for students from poor background. Public spending (particularly central
expenditure) on students aid schemes for poor students needs to be substantially
raised with simplified procedure for disbursement and the student loan financing to
become a major source of funding higher education. More specifically, students aid
scheme in the form of deferred payment of fees on graduation and employment with
risk of unemployment / under employment transferred to the Government could be
initiated. Income contingent loans could be provided through a wide range of private
227
and public sector lenders with a third party servicing of loans and government
guarantees and attractive tax cuts against money spent on education would promote
spending on education. A Social Equity Fund with substantial corpus could be
established to ensure fair access of higher education to students from poor
background.
6.10 The Legal Conundrum of Privatization in India
As with other aspects of India’s reforms, the courts have played an important role in
shaping the political economy of higher education reforms in large part because the
executive and legislative branches as well as statutory authorities have failed
miserably in their responsibilities, pushing matters of policy and administrative
detail to the courts In the process, here has been a distinct shift in the Supreme
Court’s stance in the past decade, from an undisguised suspicion of the private
sector, to a grudging acceptance of the emerging reality.
Shortly after India’s economic reforms commenced, in 1992, in its judgment in St.
Stephens v. University of Delhi the Supreme Court ruled that “educational
institutions are not business houses; they do not generate wealth.” The following
year, in the landmark Unni Krishnan v. Andhra Pradesh, the Court reviewed the
state’s right to interfere in the admission policy and the fee structure of private
professional institutions. It held that education, being a fundamental right, could not
be the object of profit-seeking activity
At least 50 percent of seats in these colleges would be reserved for students who
qualified on the basis of merit, and the college would be entitled to charge only the
level of fees prescribed for government institutions. 25 percent of seats would be
reserved for admission with merit, but the college would have discretion over the
fees, while over the remaining 25 percent, the college would have jurisdiction with
228
respect to both admission criteria and fees. The Supreme Court argued that all
private colleges would be subject to the constraint that education cannot be the
object of “profiteering” and the fee structure should be compatible with the
principles of “merit and social justice alike.” The judgment argued that all colleges
offering professional courses would have to reserve percent of the seats for
candidates selected through an entrance examination conducted by the government.
However, given the extent to which the private sector is involved in education, is it a
“service” which would allow disgruntled consumers to seek legal redress? On the
one hand, students are spending large sums for education services. But since the
courts think this is “unholy” (not illegal), poor service was effectively not justifiable
in consumer courts and the Monopolies and Restrictive Trade Practices (MRTP)
Commission refused to entertain any cases on this subject. In was not until 2003 that
the MRTP Commission issued a notice of enquiry against an education institution in
Delhi issuing an injunction restraining the institute from conducting courses.
Both the MRTP Commission and consumer forums had been receptive to
complaints against educational institutions until the early 1990s—just when private
educational services began to explode. In the Holy Angels School case, the
Commission held that education was not a service under the MRTP Act. Since
service was defined in similar terms in the Consumer Protection Act, the view found
its way to the consumer forums too, keeping out all aggrieved students and
candidates. The Karnataka High Court also ruled that the MRTP Act was not
applicable to educational institutions, as they were not providing a “service” as
defined in the Act.
The Court revisited its own judgment in the Unni Krishnan case soon after it was
delivered, and in revising the series of judgments made apparent the ambivalence
229
and confusion on the issue. In 2002, a majority of an eleven-judge constitution
bench of the Supreme Court headed by Justice B. N. Kirpal in TMA Pai Foundation
vs State of Karnataka (popularly known as the Minorities case) ruled on whether the
special educational rights given by the Constitution to religious and linguistic
minorities was also applicable to members of the majority. The verdict of the review
(given by Justice Kirpal) found the Unnikrishnan judgment to license interference in
private professional institutions in an unreasonable manner. The Court held the
scheme to be unconstitutional on two grounds: first, it violated the right of private,
unaided institutions to set their own criteria of admission; second, while formally
upholding “the principle that there should not be capitation fee or profiteering is
correct,” the Court went onto argue that “reasonable surplus to meet the cost of
expansion and augmentation of facilities, does not however, amount to profiteering.”
The restrictions on fees and admission imposed in the Unnikrishnan case prevented
the accumulation of “reasonable” surplus.
In its ruling, the Court extended the freedom accorded to minority rights to all
religious denominations under the broad banner of freedom of occupation. The
Court ruled that the freedom to pursue an occupation granted under Article 19 (g)
gives all citizens the right to establish educational institutions of their choice. Part of
the conceptual difficulty lay in defining whether education is a “profession”
(teaching) or an “occupation” (namely the enterprise of the setting up of an
institution where teachers are hired). The decision appeared to read Article 19.1(g)
of the Constitution (granting the right to carry on any occupation), with Article 26
(which grants to citizens belonging to any religious denomination or its sections the
freedom to establish and maintain institutions for ‘religious or charitable purposes’).
The verdict highlighted the essentially charitable nature of educational activity in
230
order to assign to all religious communities the right to establish educational
institutions.
In sharp contrast to the Unni Krishnan verdict, the TMA Pai judgment had an
extended discussion extolling private enterprise in education as “one of the most
dynamic and fastest growing segments of post-secondary education for which ‘a
combination of circumstances and the inability or unwillingness of government to
provide the necessary support’ are responsible.” This became the Court’s
justification for restraining state interference in the running of private institutions.
It cited the 1948 Radhakrishnan Commission, which cautioned that the exclusive
control of education by the state was a recipe for “totalitarian tyrannies” and warns
against “bureaucratic or government interference” that could undermine the
independence of all private unaided institutions, but left unspecified how these
institutions could be held to account from exploiting students, staff and faculty:
quote “The state says that it has no funds to establish institutions of the same level of
excellence private schools. But by curtailing the income of such private schools, it
disables these schools from affording the best facilities because of a lack of funds. If
this lowering of standards from excellence to a level of mediocrity is to be avoided,
the state has to provide the difference, which, therefore, brings us back to a vicious
circle to the original problem, viz, the lack of state funds. The only solution would
appear to lie in the states not using their scanty resources to prop up institutions
that are able to otherwise maintain themselves out of the fees charged, but in
improving the facilities and infrastructure of state-run schools and in subsidising the
fees payable by the students there. It is in the interest of the general public that more
good schools are established; autonomy and non-regulation of the school
231
administration in the right of appointment, admission of the students and the fee to
be charged will ensure that more such schools are established” unquote.
This judgment had several anomalies necessitating a clarification issued by a
Constitutional bench headed by Justice V. N. Khare (Islamic Academy of Education
vs State of Karnataka, 2003). It deliberated on two distinct questions: first, the
educational rights of religious minorities in comparison to the majority; and, second,
the freedom available to private, unaided institutions.
On the first of these issues the five-member bench led by Justice Khare clarified that
the right given by Justice Kirpal’s verdict to the majority community was not on par
with the right given specifically by the Constitution to religious minorities under
Article 30. Justice Khare’s verdict concluded: It is unfortunate that a Constitution
Bench had to be constituted for interpreting an 11 Judge Bench judgment. In judicial
history of India this has been done for the first time. It is equally unfortunate that all
of us cannot agree on all the points, despite the fact that the matter involves
construction of a judgment.
Time and again the courts have been drawn into defining the rules for the allotment
of seats in professional colleges and setting the fee structure for different categories
of candidates. In 2003, in Saurabh Chaudri v. Union of India, the Court had to rule
on the constitutional validity of reservation, whether based on domicile or
institution, in the matter of admission to post-graduate courses in government-run
medical colleges. In this case, three judges of the Court delivered separate
judgments of their own, though they concurred in reducing the quota for super-
special subjects from 75 to 50 percent for in-house candidates and opened the other
half to all-India candidates. Justice A. R. Lakshmanan’s observations captured the
chaotic state of affairs: Every year during the admission season, several lakhs of
232
students undergo immense suffering and harassment in seeking admission to
professional courses. This is caused by uncertain policies, ambiguous procedures
and inadequate information. The miseries of the students and parents are escalating
year after year due to the boundless expansion in the number of professional
institutions and their intake capacity, emergence of a large variety of newer
disciplines and mobility of students seeking admission beyond the boundaries of
their states.
The Court recognized the rampant reality of the “many unfair practices in
admissions and devious ways of fee collection exploiting the anxiety of the students
and uncertainty of procedures.” This was compounded by State governments
continuing to try to force “deemed universities” to implement their directives to allot
50 percent of seats for admission through a common entrance test conducted by the
states. In 2004, the Supreme Court (citing its 1999 verdict in the Preeti Srivastava
case) ruled that state governments have no control over deemed universities in the
state, which are recognized by the UGC.19 But the implications for private
autonomous colleges were confusing, since no sooner had the Supreme Court, in
principle, given them autonomy than controls were imposed on them once again.
Even in the judgment most supportive of private initiative in education, the
Minorities case, the Court had left open the door on fees caps and regulation of
admission, in the name of clamping down on excess profiteering, and the High
Courts promptly followed by curbing the autonomy of private higher educational
institutions.
Subsequently, in August 2005, the Supreme Court, in P.A. Inamdar & Ors. vs. State
of Maharashtra & Ors ruled that private colleges, or those that do not receive
government aid, are not required to meet reservation quotas, and further maintained
233
that these schools have full autonomy in their admission of students. This is
arguably the strongest property rights-based judgment given by any Court in India to
date. Its central premise was that if the state determines the criteria of admission for
more than 50 percent of the seats, that would be tantamount to nationalizing the
institution. Schools were also given independence in the setting of fees, with the
caveat that such tuition could be regulated to prevent “unreasonable profits.”
Curiously, the Court suggested that the schools set aside 15 percent of seats for non-
resident Indians, to be charged higher fees to subsidize poorer students, allowing for
the possibility of cross subsidies inthe setting of fees.
Establishing and administering educational institutions is protected by Article 19(1)
g, and in case of non-profits, Article 26(a) of the Indian Constitution. In addition,
minorities are given additional protection under Article 30. But what would the
freedom to establish and administer educational institutions mean if unaided
institutions did not have the right to make two basic decisions: who to educate and
what to charge them? For decades these two rights were not givento institutions.
This judgment is part of a trend that is gradually restoring these rights to institutions.
The State can no longer regulate admissions made by unaided institutions; it can no
longer enforce reservations or appropriate a quota for itself. The Court still does not
treat them as absolute rights. While institutions can finally design their own
admission procedures, these must now be fair and transparent. The Court will now,
give more leeway in the setting of fees, but these should not amount to profiteering
and certainly prohibit capitation fees.
Apart from restoring greater autonomy, the Court has also been, in a roundabout
way, trying to narrow the gap between the liberties enjoyed by minority institutions
and the freedoms enjoyed by non-minority unaided institutions. Inamdar is premised
234
on a simple thought: if an institution does not take state aid, it should have the
maximum freedom possible, whether it is a minority or a non-minority institution.
Article 30 on this view simply gives minorities additional protection. It ensures that
minority institutions are not subject to take over by non-minorities and it allows that
minority institutions can retain their minority character even when aided by the
state. But even the latter aspiration is slightly attenuated. There is an inner tension in
the Indian constitution between Article 29(2) which enjoins that the state shall not
discriminate on the basisof religion etc, and Article 30(1) which protects the rights
of minority institutions.
This tension in the constitution is succinctly brought out in the contrasting
arguments of Justice Ruma Pal and Justice Variava in the Pai case. Their respective
opinions are as good an introduction to two different conceptions of secularism at
work as any. But in the end the Court, as it often does, did not settle the matter on
first principles, but opted for something like a modus vivendi. Aided minority
institutions should be allowed to retain their minority character. But to prevent these
institutions from falling afoul of the non-discrimination provisions, they should
admit a sprinkling of non-minority students. While the statement of principle in
Inamdar towards greater autonomy is more emphatic, its practical implications are,
however, still unclear.
This particular set of cases arose in part because the Islamic Academy case had
made provisions for States to set up committees to regulate institutions to prevent
“profiteering” and capitation fees. But the line between preventing profiteering and
unduly regulating fees is a very thin one. Invariably these committees impinged
upon the freedom of institutions to set their own fees. For the time being the Court
has let these Committees stand. It enjoins states to come up with a suitable
235
regulatory mechanism to prevent profiteering. But as the Court acknowledges,
Higher Education is not easy to price. Suppose an institution wants to attract back
extraordinary talent, or provide unrivalled infrastructure in terms of libraries, or
invest greatly in research.
These objectives can potentially absorb as much resources as they are fed. Would an
institution be legitimate in charging higher tuition to meet these objectives? In other
countries, the nonprofitstatus is determined, not by looking at quantum of fees but
by the legal and governance structure of the institution. For instance, Trusts (where
private individuals cannot take out profits in a conventional sense) are given greater
leeway in making their decisions. But in the absence of greater conceptual clarity of
“non-profiteering” a good deal of regulatory ambiguity is likely to remain.
The UPA government rushed to amend the Constitution, allowing parliament to
enact legislation mandating reservations in private higher educational institutions.
This amendment allowed for the subsequent passage of the Central Educational
Institutions (Reservation in Admission) Act, 2006 providing for 49.5 percent of seats
in higher educational institutions to be reserved for SCs, ST, and OBCs, in
aggregate.20 (These reservations are applicable to all but sixth schedule institutions,
institutions of excellence, and minority institutions). In March 2007 a two member
bench of the Supreme Court stayed the particular provision for 27 percent
reservations for OBCs in elite higher education institutions such as the Indian
Institutes of Technology and Management, on the grounds that the government
could not implement OBC reservations without accurate data and the 1931 Census
could not be the basis for numerically identifying OBCs. The Court did, however,
reaffirm the validity of reservations for SCs and STs. It concurred that the State
could pursue ameliorative measures for disadvantaged classes but not at the expense
236
of those not included. Such measures, it argued, risked becoming “permanent and
appear to perpetuate backwardness.”21 In May 2007, given the gravity of the matter
and its far reaching implications, the issue was referred to a larger bench. This
referral will address four critical issues facing Indian higher education: the power of
the government to impose and amend reservation policies in light of possible
conflicts with fundamental rights found in Articles 14, 15, 21, and 22 in the
Constitution; whether minority institutions can be excluded from implementing the
quota policy; whether measures to prevent the “creamy layer” from benefiting
disproportionately are mandatory; and last, but not least, the constitutionality of the
93rd
amendment itself.
Admissions criteria are become increasingly politically contentious – and inevitably
end up in courts. In December 2006, the government of Tamil Nadu banned the
common entrance test (CET) for professional courses with the Tamil Nadu
Admission in Professional Education Institutions Act. Instead, applicants to courses
in medical, dental, and engineering were to be considered for admission based on
their scores on the qualifying examination at the Higher Secondary level of the state
board or any equivalent exam. The legislation implemented a tenuous normalization
formula to compare marks obtained by students in other state boards or authorities
with those received in the Tamil Nadu state exam. The bill had substantial political
support as its purpose was to curb inequality in the admissions process for poor
students who otherwise could not gain access to expensive coaching centers for CET
(Common Entrance Test)preparation. Curiously, when the CET was originally
introduced in Tamil Nadu, it was justifiedon the grounds that it would help the poor
access higher educational institutions.
237
This legislation was challenged in courts as well on the grounds that the constitution
gives exclusive power to the central government with respect to laws pertaining to
professional education, and that state governments cannot override these provisions.
From 2005-2006, the Court had struck down similar legislation passed by the
AIADMK and DMK governments, referring to All India Council for Technical
Education (AICTE) and Medical Council of India (MCI) rules, which call for a CET
if the applicants to schools are under the purview of more than one examining board
or if the university to which they are applying has more than one college offering the
same program. However, breaking from past precedent, the Madras High Court
dismissed the batch of petitions that challenged the law, but it has now gone to the
Supreme Court.
In June 2006, the Supreme Court allowed an association of Muslim minority
technical education institutions in Maharashtra to administer their own entrance
examinations. The state claimed that the association was not authorized to
administer the tests. The association countered by claiming that as all members of
the association are minority institutions; it had the right to admit students on the
basis of their own exam. In November of the same year, the Delhi High Court
eliminated the interview process for nursing schools in the city and made the
selection process entirely quantitative, purportedly in the interests of reducing bias
in the admissions process. In late 2006, the Bombay High Court specified that
private engineering colleges should conduct five rounds of the Centralized
Admissions Process (CAP). Earlier, the Court had directed that the CAP be pursued
until all seats were filled. However, at the time of passage, three rounds of CAP had
concluded and only 20 percent of seats were filled. As a result, the Court stated that
238
after a fourth round of computerized selection, the remaining seats should be
decided through personal interviews.
In July 2006 the Kerala Assembly adopted the Kerala Professional Colleges or
Institutions (Prohibition of Capitation Fee, Regulation of Admission, Fixation of
Non-exploitative Fee and Other Measures to Ensure Equity and Excellence in
Professional Education) Act, 2006, designed to stifle the profiteering behavior of
private college managements throughout the state, many of which had flourished
since 2001 due to heavy investment in private education by the previous United
Democratic Front government. The bill amounted to de facto nationalization of the
privately run higher education institutions within the state. 50 percent of seats were
to be reserved for disadvantaged groups, as determined by economic, social, and
physical handicaps.
An additional 20 percent of seats were to be reserved for students from the general
merit list andthose with distinction in sports and culture. Of the remaining 30
percent of seats, half could befilled by NRIs.22 Institutions were no longer able to
charge capitation fees and were required to submit fee structures before a state
committee to ensure that capitation fees and unreasonable profits were not being
extracted. The institutions were only allowed to collect a maximum of one year’s
tuition at a time and this fee was required to be fixed for three years of enrollment.
Furthermore, the institutions were required to provide reduced tuition to members of
SCs, STs, and OBCs for a minimum of half of the students admitted, utilizing the
increased tuition levied on NRIs. Admissions for all seats, save those for NRIs, were
to be based on a common entrance exam administered by the government, and the
admissions process as a whole was subject to supervision by a government advisory
239
committee. Violations of any of these provisions were to be punishable by hefty
fines, revocation of recognition for particular areas of studies, and other damages.
Moreover, in order the curb the inevitable tendency of private colleges relabeling
themselves as minority institutions to escape state regulation, the government of
Kerala imposed three criteria to denote minority status. The linguistic or religious
minority must comprise less than 50 percent of the state population; the number of
institutions run by the minority community must be proportionately smaller than
those administered by the non-minority community; and the population of students
in professional education belonging to the community must be smaller than the
population belonging to the non-minority community. Given the large number of
highereducational institutions administered by communities claiming minority status
in Kerala, the passage of this bill unsurprisingly met with great resistance, primarily
by the Catholic Church, the most prominent minority group, and a leading provider
of educational opportunities in the state.
The provisions of the bill pertaining to mandatory government sponsored entrance
examination, fee structures and discounts for specified categories of students and
reservations of seats were struck down by the Kerala High Court (and later upheld
by the Supreme Court). Perhaps most critically the state government’s definition of
a minority was deemed unconstitutional.
What does this brief history of the intervention of the courts tell us? A couple of
points stand out. First, while the courts have been historically suspicious of private
enterprise in education, they have shifted their stance. However, the Court is still
trying to reconcile it with some formal equality in the admissions process. Second,
the courts interventions are more about procedural aspects of equality. They do very
little to enable higher education to be more widely available or have little impact on
240
quality. Third, there is an overemphasis of concern about professional education in
medicine and engineering, even though the majority of students are enrolled in
traditional science and arts courses. There is a PIL pending with the courts on the
establishment of more general private universities, and it will be interesting to see
what the courts allow by way of private universities. Forth, there is a peculiar
public-private split that the courts have also reinforced, and this split can be
understood in terms of levels of user charges. By and large, the courts, like the
government, have been reluctant to sanction fees hikes in public institutions (even
based on the proposal that university fees be pegged at least to the level of fees paid
in high schools).
Finally, the courts have been party to the mess of regulatory jurisdiction. Two
examples are illustrative. In State of Andhra Pradesh v/s J.B. Education Society, the
Supreme Court held that the consent of the state government is necessary before
starting an engineering college and the AICTE cannot grant approval without this
consent. But one of the grounds on which this determination was made is
astonishing. The judgment says, “the State authorities alone can decide about
educational facilities and the needs of the locality. If there are more colleges in a
particular area the state would not be justified in granting permission to one more
college in thatlocality.” Imagine what this might mean for competition or
agglomeration! A second example concerns the judgment in upholding the
jurisdiction of the UGC in approving private universities
in the Chhattisgarh case. While the legislation passed by the state of Chhattisgarh’s
approving nearly 200 private universities was appalling, the premises which the
Court brought to bear on the Chhattisgarh case should also be a cause of worry.
Relying on its own earlier judgment in Tamil Nadu and Anr. V. Adhiyaman
241
Educational and Research Institute, the Court has defined the power conferred on
the UGC under Item 66 List 1 as follows: “The expression ‘coordination’ used in
Entry 66 of the Union List of the Seventh Schedule to the Constitution does not
merely mean evaluation. It means harmonization with a view to form a uniform
pattern for a concerted action according to a certain design scheme or plan of
development. It therefore includes action not only for the removal of disparities of
standards, but also for the occurrence of such disparities.”
On one level it is difficult to fathom what this means. If one takes the most obvious
interpretation then this claim makes little sense. Higher education is fundamentally
about distinction. What would an education system where there was no disparity of
standards across institutions look like? Currently there is great regulatory
uncertainty stemming from multiple jurisdictions and where institutional ownership
rather than the function of the educational programs is the basis forregulation. The
AICTE is charged with regulating technical education, but that simply begs the
question what is technical education in this day and age? A diploma course (mostly
offered by private institutes) comes under the purview of AICTE, while degree
courses (mostly given by state-run institutions) are regulated by the UGC. For
instance, management education postgraduate programs offered by universities are
“degrees” and therefore regulated by the UGC,while all other management programs
are regulated by the AICTE. However, the IIMs are directly regulated by the HRD
Ministry. And an institution like the Indian School of Business that does not seek
approval for its management program from anyone, can find itself being harassed by
the AICTE on why it should not be closed down. High Courts in different states
have come to a different determination over whether AICTE should have
jurisdiction over technical courses run by universities, which by definition have
242
degree granting power. Indeed for professional courses other than the professional
body concerned (example accounting or architecture), one might wonder if
judgments of quality are best left to potential employers and markets rather than
regulators of indifferent quality.
One curiosity needs highlighting. While the primary and secondary school sector has
been left replete with freedoms (although strictly speaking these are also non-profit
sectors), higher education is regarded as the arena in which a formal principle of
equality of opportunity is most vigorously asserted. We call this principal “formal”
because it upholds the defensible idea that ability to pay should not determine access
to institutions. But the manner in which this principle is implemented ensures that
adequate resources will not be mobilized for expanding the quality and quantity of
education, and that de facto inequalities in education will increase, because private
spending outside regular institutions greatly determines future prospects. It is
difficult to see what legal principles or logic of political economy determines the
courts interventions. If the executive and legislative branches of government are
principally responsible for the travails of Indian higher education, it is fair to say
that the Court’s contribution has been more confusion than clarity.
6. 11 Philanthropy or Privatization?
In discussions of the privatization of education, a good deal of emphasis is placed on
the potential of private philanthropy to make up for the deficiencies of the state or
the market. It is for this reason that it was decided to examine some of the broad
trends in philanthropy in education. To put it briefly, there is very little evidence so
far that philanthropy has been able to even make a dent in the deficits bequeathed by
the state in this sector. Indeed, it is argued that the structure of philanthropy has only
243
exacerbated the distorted forms of privatization that was discussed above. In
particular, the following claims are evident:
1) There is a good deal of confusion in Indian official assessments and public
discourse at large between philanthropy and not-for-profit educational institutions.
2) Philanthropic commitment to public institutions of higher education has been
steadily declining since the middle of the century. Philanthropy is being “privatized”
in two senses. First, donors to higher education are more likely to retain effective
control over the resources they donate. Second, philanthropy is being conflated with
creating not-for profit, but financially sustainable institutions. In these institutions,
financial sustainability does not refer to receiving income from endowments and
investments, but to charging the beneficiaries for the services being provided to
them.
3) This form of philanthropy is having many adverse consequences for the
credibility of public institutions and philanthropic activity related to higher
education in general.
4) Public institutions of higher education are unlikely to, in the near future; attract
significant amounts of philanthropic investment because of their own weaknesses
and the lack of a philanthropic ideology amongst most potential donors of the kind
that existed in pre-independence India.
5) Philanthropy can still play a significant role in higher education in India, but it
will have to take different organizational forms than the ones we have seen in the
recent past. Philanthropy is one of the ways in which the relationship between public
and private is negotiated. All philanthropic activities, or non-profit organizations
claiming tax benefits, must pass the following two tests:
244
1. The Public Purpose Test: The organization that claims tax exemption must
operate primarily for some purpose other than private gain. The idea is not that such
organizations avoid profit (understood as excess of revenues over expenses), but
rather on the existence of a substantial benefit purpose.
2. Non-Distribution of Surplus: Such organizations are barred from distributing its
net earnings, if any, to individuals who exercise control over it, such as members,
officers, directors, or trustees. This is known as the “non-distribution constraint.”
A major difficulty in the Indian case is whether most private institutions that claim
tax-exempt status qualify as “philanthropic.” This has been a major legal conundrum
and, as we have noted in another section, judicial decisions have done little to add
clarity on the issue. There are major legal and conceptual difficulties in fixing the
boundaries of what ought to be regarded as tax-exempt, philanthropic or non-profit
activity in the field of higher education. By definition, allIndian universities and
private colleges (excluding non-degree giving diploma institutes like computer
training conglomerates NIIT, APTECH) are “non-profit” organizations, but this
category is too blunt and does not distinguish between say, capitation fees colleges
in the south and a regular college run out of trust funds that does not charge
students. Technically, both are non-profit institutions and qualify for tax
exemptions. But there is a good deal of suspicion whether investment in private
unaided colleges can be called “philanthropic” at all, even though they are formally
not-for-profit. Indeed, it was the recognition of this difficulty that led a GOI
committee (the Parthasarthi Shome Committee) to propose an amendment to the
legal definition of the term “charitable.”
The Shome Committee recommended that only organizations that receive 90
percent of their annual receipts through donations or grants be treated as
245
organizations for a charitable purpose. The underlying rationale is that donors are
best placed to judge whether the activities of an organization are charitable or not.
To the extent that an organization receives the bulk of its income from donations,
the activities of the organization could be perceived to bepredominantly charitable in
nature. However, the criterion presented by Shome Committee’s definition of
“philanthropic” or “charitable” would disqualify most existing organizations.
Donations are an uncertain source of income for most organizations; free-rider
incentives often keep the flow of funds to organizations below the socially optimal
level; trusts run on donations are only part of the spectrum of philanthropic activity;
and many NGO’s are engaged in economic activities designed to generate incomes
to make the poor self-reliant. The Shome Committee wanted a criterion of charitable
that was based on source of income rather than end purpose.
But whatever difficulties with the Shome Committee’s recommendations, it did
highlight a central issue in the field of higher education and philanthropy: Should
institutions of higher education that derive almost 100 percent of their revenue from
charging for goods and servicesto students be classed as “philanthropic”? Or
should a classification of “philanthropic” takeinto account some criteria of the
source of income?23 The extent of philanthropy in higher education in India
depends upon whether or not one classifies a large number of private colleges as
surrogate businesses or as genuinely philanthropic. This phenomenon is of some
interest because it helps shed light on an apparent paradox— while the number of
“trusts” set up for philanthropy in higher education has consistently been steadily
rising, the total share of “endowments and other sources” in higher education (that is
resources excluding government expenditure and fees) has been consistently falling
and is now 2.74 percent of all education expenditure, down from a high of 11.62
246
percent in 1951 (Modi and Mukhopadhyay, 2000). In other words, while the number
of educational trusts is increasing, most of them are generating revenue by charging
for services rather than through donations or endowments. Although one needs
more comprehensive data on this, it appears that philanthropy in higher education
has increased, if one uses as a measure the total number of trusts and volume of
activity. However, the picture is the opposite if the measure is the source of income.
The pre-independence period, or that between 1892 and 1947, has been termed as
the “Golden Age of Indian Philanthropy” (Sundar, 2000). Indian philanthropy not
only made the transition from merchant charity to organized, professional
philanthropy, but did so on an impressive scale. This period saw the establishment
of some of India’s most enduring trusts and foundations and public institutions of
enduring significance. Aligarh Muslim University, Banaras Hindu University, Jamia
Millia, Annamalai, Indian Institute of Science, among others, was created largely
through voluntary donations. Higher education, especially institutes of research were
widely considered to be “pioneering.” Of the sixteen largest, “non-religious” trusts
set up during this period, fourteen were major patrons of higher education.24 India’s
most renowned research university, the Indian Institute of Science, is a case in point.
The then Maharaja of Mysore, Krishnaraja Wadiyar, advised by his diwan-cum-
chief engineer, M. Visvesvaraya, instituted several initiatives to improve the quality
of higher education in the state, with a particular emphasis on technology and the
sciences. In 1905 the government of Mysore persuaded J N Tata to locate the Indian
Institute of Science in Bangalore, subsidized by a land grant and an annual
government subsidy of Rs 50,000. These initiatives produced generations of highly
trained engineers and scientists in the state and an environment conducive to
247
scientific and technologicalinnovation, both of which, arguably, contributed to
Bangalore’s “take-off” (Bhagavan, 2003).
What is even more striking, a major proportion of their grants went to “public
institutions” such as universities that were either directly under state control or
some form of public authority. It is not only the object of their spending that is of
interest, but also the manner in which money was spent. Arguably, philanthropy had
much closer links with public institutions in the most literal sense of that term.
Grants, although emanating from family trusts were, once made, not under the
control of family trusts and were deployed for specific purposes by the terms set by
the receiving institutions and not the trust itself. The net result was that the net share
of private philanthropy in shouldering the burden of public institutions was as high
as 17 percent in 1950, and is now down to less than 2 percent. That this share would
decline does not come as much of a surprise as the government has expanded its role
in higher education. Even so, the extent of the decline is striking. Alumni
contributions are beginning to creep up but have been most noticeable only in the
case of IIT’s (since about the mid-1990s), which have been able to tap into a large
base of professionalized alumni among the Indian Diaspora. However, even as this
effort was gathering pace, the Indian government’s Human Resource Development
Ministry formed the Bharat Shiksha Kosh (India Education Fund) in 2003. The
Indian Parliament’s Standing Committee on Human Resource Development simply
noted that “the contribution of the Government to the Bharat Shiksha Kosh should
definitely have been more than Rs. 1.00 crore considering the mammoth task of
funding from the Kosh.”25 But by centralizing all overseas donations for education
to the fund, the move effectively denied would-be donors any say in the purposes for
which the money was used. Since the fund was set up, individual contributions to
248
IITs dropped dramatically. Kanwal Rekhi, a founder member of TIE (The Indus
Entrepreneur) who had funded an IT school at his alma mater IIT-Mumbai, called
the Fund “the most asinine thing I ever heard in my life.” He went on to say, quote
“Donors are making voluntary gifts because of emotional attachment or commitment
to the institutes. They will not hand off money to a nameless bureaucrat or a feckless
politician” Unquote.
While the decision was reversed by the successor UPA government, allowing
alumni to contribute directly to their alma maters, its populist stance on reservations
for OBCs at the IITs and IIMs has hardly helped in this regard, underscoring the
uncertainties of the regulatory structure in this sector. The lack of autonomy of
educational institutions has been one of the biggest impediments in attracting
diasporic philanthropy for higher education. Alumni who are prepared to give
substantial resources also want to have a say in its use and an institutionalized
mechanism to have their voice heard. However, the governance structures of most
higher education institutions are so poor that such mechanisms are non-existent.
Nearly half of the alumni of the All India Institute of Medical Sciences are overseas,
but they have balked at contributing since they have little say in the governance of
that organization (Kapur et. al, 2004).
249
CHAPTER 7
EMERGING OPPORTUNITIES:
INDIA’S NEW ROLE ON THE GLOBAL ARENA
7.1. Introduction
India has the largest number of higher education institutions in the world, with 610
universities and 33,023 colleges. At 16 million, the number of students enrolled is
the third largest globally. However, the Gross Enrolment Ratio is low as compared
to other countries, including developing countries. Critical gaps exist in the capacity
and management systems of the higher education structure. India’s large and young
population requires access to affordable and credible higher education in order to
raise equity and promote inclusive growth. Its emerging role in the global economy,
as well as its declining age dependency ratio in an environment of dwindling
workforce in developed countries, afford it a key role in international industry and
services sectors. India also has the capacity to transform into a global education
services provider. These objectives would require a huge increase in the expenditure
on higher education, both by the government and the private sector. A climate must
be built for attracting investment in education from private domestic and overseas
sources. Regulatory authorities need to be set in place.
Additionally, mechanisms for quality of service provision, accreditation, curriculum
revision, and others need to establish Higher education is a crucial input for access
to better opportunities in life. India’s higher education system suffers from a
yawning gap in funds, as well as from archaic regulatory mechanisms, poor quality,
and low efficiency. Liberalization of the sector to attract private domestic and
overseas investments on a large scale is the key to access, affordability, and equity.
250
To address this issue in mission-mode, India has to undertake major efforts with the
private sector as a critical partner.
A tectonic shift in the higher education system in India has become extremely
urgent. Reform, liberalization, and de-regulation of the system are vital to ensure
access, improve the quality of life, and raise incomes. Liberalization must allow
flexibility and autonomy to institutes. As the economic reforms of 1991 opened up
Indian industry, enabling it to become globally competitive, can open up Indian
Human Capital, or education system, thus allowing all Indians to win globally. A
strong and coherent framework for regulation must replace the current confusion
and plethora of constrictive rules. There is need for consolidation of universities and
colleges, allowing competitive practices to prevail in market-oriented education, and
protecting non-market education streams. Regulation must ensure also that new
monopolies and cartelization mechanisms are not created
Developing countries with large populations, including India, are bringing an
expanding consumer base and huge workforce to the world trading arena. As a
vibrant democracy, India’s relationships within its neighborhood, the larger Asian
environment, and across the globe assume significance for peace and prosperity. As
a growing economy, its stable democratic environment, consumer propensities and
workforce profile impart balance to the global growth process.
7. 2 Imperatives of Inclusive Growth
The discrepancies between income growth of states have widened, with richer states
having grown faster than poorer states. There are differences in incomes within
states as well, between urban and rural areas, between genders, and in individual
incomes. Education is a major component of bridging such gaps, particularly
primary education. The World Bank Development Policy Review finds high
251
correlation between literacy rate and rank in GDP per capita. The 4 lowest ranked
states in terms of GDP per capita also ranked lowest in HDI, with Bihar and Uttar
Pradesh ranking lowest in literacy rates as well. Seven poor states have over 40% of
India’s population, including nearly 50% of India’s poor. They could garner only
13% of FDI and contributed just 17% to manufacturing output and 25% to overall
GDP. The pressures on the higher education system are bound to multiply as
incomes inequalities between different sections of society are reduced, literacy rates
increase, and better health and social security systems come into place. The higher
education system must anticipate the coming boom in demand and gear up to face
emerging challenges. In fact, this is an area where ‘cause and effect’ intertwine:
increased GER in higher education would create greater opportunities for higher
income for beneficiaries and greater income leads to more demands in higher
education (for lifelong learning). This is a virtuous cycle which can cover all Indians
centrally.
7.2.1 The demographic dividend
OECD countries are expected to face decline in labour force as populations age,
with a negative impact of 0.2-0.3% on per capita GDP growth in Japan, Germany,
France and other countries (in USA, demographics is expected to continue to
contribute to growth). At the same time, India is expected to experience declining
age-dependency ratios till 2035. The age distribution of the population of India is
projected to change by 2016. The population below 15 years of age (currently 35
percent) is projected to decline to 28 percent by 2016. The population in the age
group 15 - 59 years (currently 58 percent) is projected to increase to nearly 64
percent by 2016. The age group of 60 plus years is projected to increase from the
current levels of 7 percent to nearly 9 percent by 2016. Aging countries will make
252
up for decline in workforce through rise in productivity and designating retirement
age. However, some activities can be expected to shift to countries with more labour
force participation such as India. The trend is already visible in the outsourcing of
services and manufacturing, the global IT off shoring market itself being in the order
of $300 billion of which India was able to garner $60 billion by 2010.
In his Budget speech in February 2005, the Finance Minister stated that 10 million
additional jobs could be generated through assured irrigation, 2.5 lakh jobs are being
created annually in the food processing sector, the textile sector could create
employment for 12 million people in the next five years, while lakhs more jobs
could emerge from the construction industry.
The above estimates cut across sectors and overlap; however, they do point to a need
for ensuring a large and growing qualified workforce. While not all of these
employment opportunities will require higher education skills, there will be a much
larger need for persons with higher education qualifications to meet these demands.
Some demand would also arise from retraining of existing workforce and ‘up
training’ to enable people to move to higher knowledge base and consequently,
higher standards of living.
7.2.2 New Technology and Infrastructure
India’s recent prowess in the IT and IT enabled services sector indicates the
potential of higher and professional education coupled with demographic
advantages. India already accounts for 65% of global offshore IT industry and 46%
of global BPO industry, exporting $17 billion worth of services in 2005-06. This has
the potential to cross $60 billion by 2010, employing 2.3 million people directly (as
per 2006 forecast). In the technology-driven world, research and innovation will be
key drivers of future growth. Innovation regimes need to be strengthened, corporate-
253
academia cooperation enhanced, and intellectual property rights made credible.
India has the potential to become a global supplier of R&D with 125 of the Fortune
500 companies having set up research bases.
7.2.3 Education as a services sector
The share of the services sector in GDP of India has increased from 50 per cent in
2000-01 to over 56 per cent in 2005-06, while service exports touched $ 46 billion in
2004-05. Explosive growth in business service exports, including professional
services, has been registered, reaching $ 15.4 billion in the first half of 2005-06 and
surpassing software service exports. Training and education has become an
invaluable aspect of the services sector. Community, social and personal services
sector grew by 9.2% in 2004-05 and 7.8% in 2005-06. Apart from the many private
higher education providers qualified to give out degrees and diplomas under the
formal university and technical education system, a huge number of training
institutes have proliferated with no allegiance to the formal system. The worth of
training at these institutes is determined solely by the employability of the
participants. Besides, there are a number of coaching institutes providing tuition for
competitive exams. By one estimate, the number of students enrolled in such
institutes for IIT entrance exams is close to 200,000. A similar number would exist
for medical entrance exams as well as exams for administrative and banking jobs.
The cost of tuition at these institutes is substantial, going up to Rs 500 per hour. As
these institutes are not bound by any regulations or registration, the exact figure of
expenditure is not calculable; however, anecdotal evidence suggests that parents are
prepared to spend high amounts for such informal coaching, indicating that
employability is the main reason for seeking higher education. Therefore, higher
education with its conditions of rivalry and excludability is increasingly being
254
viewed as a private rather than public good, whose price is determined by market
forces. Given the inelasticity of demand and the willingness of buyers to pay large
amounts, higher education needs to be viewed as a service provision that should be
regulated. India has the opportunity to also develop its higher education sector into a
global service provider by attracting students from developing countries. The low-
cost advantage together with the India brand as a knowledge source and English-
language advantage can prove to be a magnet for students in search of higher
education outside their own countries. Singapore, New Zealand, Australia and other
countries are taking advantage of the global education market which is currently
dominated by USA and UK. Even China has restructured its education system to
cater to non- Chinese students despite lack of English-language capabilities. To plug
into the global education market, India would need to systematically set in place the
necessary prerequisites such as high-tech infrastructure, world class campuses,
globally recognized courses and degrees, and well-paid faculty for teaching and
research.
7.2.4 Demand supply mismatch in research
Higher education is also necessary to meet demands that are not in the domain of the
market, such as pure research in sciences, social sciences, and humanities. Such
research adds to the knowledge base of society, contributing to sustained growth
momentum. Research is the basis of technological advance, but requires
considerable investment and a close linkage between universities, educational
institutions, and industry. Expenditure on R&D in India is 0.81% of GDP compared
to 2.6% in the US and almost 3% in South Korea. Of this the government of India
accounts for 67.5% and the private sector 21.6% in contrast to other countries where
the private sector funds the bulk of research activity. India has 119 researchers per
255
million of population as compared to Japan with 5287 and 4484 in the US. Annually
about 6000 doctoral degrees are awarded in India.
Academic institutes in India have few interlinks amongst themselves or with
industry. Research institutes funded by the government are segregated from
universities rather than following the more accepted system of teaching and
research. The quality and fields of interest of researchers is also dubious, with
reported incidences of plagiarism and lack of standards. As research activities and
technological advance are central to the growth of an economy, private expenditure
on R&D must be boosted through greater participation incentive. Recent
government announcements to invest Rs 100 crores in 4 universities 150 years old
and to create more institutes such as the Indian Institute of Science are insufficient.
China has pledged $150 million in 10 universities and proposes to upgrade 100
institutes to become part of the top 500 global educational institutes. Regarding
subject-wise enrolments, 45% of students are in the arts stream, 20% in science,
18% in commerce and the remaining in professional courses. The low enrolment in
science implies that students could not gain admission in these courses due to supply
restraint and lack of competitiveness.
7.3 Emergence of New Types of Providers
The post-1980 period saw the emergence of new types of providers of higher
education in India. During this period, the private institutions proliferated, the
distance education programmes gained wider acceptance, the public universities and
colleges started self-financing programmes, and foreign institutions started offering
programmes either by themselves or in partnership with Indian institutions and the
non-university sector grew rapidly.
256
7.3.a Private institutions
In the post-1980 period, a few institutions were set up by religious and charitable
trusts of repute for philanthropic purposes. Most other higher education institutions
were set up by individuals or family groups. These were not financially dependent
on the government and came to be known as private unaided institutions. According
to Altbach (2005b) such family-style higher education institutions are a part of a
worldwide trend. In such institutions, the family members remain directly involved
in the administration, governance, financial control and direct and / or indirect
ownership of the institution. These are de jure not-for-profit institutions; however,
most of such institutions in India exhibit several characteristics of the private-for-
profit institutions as elsewhere in the world. Such institutions are often referred to as
self-financing institutions. For the sake of convenience, we shall call these as
‘private’ institutions as distinct from ‘public’ institutions that would include both
government as well as private aided institutions. Table A3 gives the number of
institutions and enrolment in 2000/01 and 2005/06 for various types of institutions.
7.3. b Distance education providers
Distance education in India had its genesis in the early 1960s. It started as
correspondence education -- a supplementary method of education to meet the
growing demand for higher education. Since then it has expanded rapidly,
particularly over the last two decades. In 2005, there were 12 open universities
[including the Indira Gandhi National Open University – (IGNOU)] and 106 dual
mode university distance education institutes / centres in the country, catering to
over 2.8 million students. Each year, nearly 1.3 million students register for various
courses in these universities. (Garg et al, 2006). This was considered as an
economical and a quick way of increasing enrolment in higher education.
257
The emergence of distance education has been a major development over the last
two decades. There are diverse types of providers offering a variety of programmes.
The regulatory bodies have little control over them. They operate in different ways
and sometimes at cross purposes with each other. The growth has been haphazard
and the quality is both unsatisfactory and uneven (NIEPA, 2006). Also, there is an
anomaly of the major provider - IGNOU being the regulator. The regulator for
distance education – the Distance Education Commission (DEC) is a part of
IGNOU. This results in conflict of interest with IGNOU getting a preferential
treatment over the other distance education providers from the regulator. Nowadays,
the boundaries between distance education and on-campus education are in a
continuous process of convergence, and it is likely that the future interrelations
between them will be marked both by a growing competition and a growing
cooperation (Sarah, 1999)
7.3.c Self-financing courses in public institutions
Since the 1990s, there has been an acute resource constraint in public financing of
the higher institutions. This had put a brake on the expansion of the public university
system. Enterprising public institutions had no option but to start self-financing
courses to meet the student demand. Higher education institutions charge the
students tuition fees not only to cover the operating costs, but even generate surplus
from self-financing courses. The courses were obviously offered in subjects having a
demand in the market, such as engineering and technology, medicine, teacher
education at the undergraduate level, computer applications and management at the
postgraduate level. The fee structure in conventional courses in public institutions
continues to be low. The revenue from fees is often adjusted from government
grants. As a result, the revenues from self-financing courses along with distance
258
education courses form the main source of revenue for most public universities and
colleges.
7.3.d Foreign education providers
There is a craze for foreign education evident from the trend of a large number of
Indian students going abroad for studies. Sensing a huge unmet demand for
professional education, a number of small operations have sprung up in different
parts of the country. As per a study conducted by NIEPA, 131 foreign education
providers were identified to be operating in India in 2005 enrolling around a few
thousand students in the country. The study found that the majority of the foreign
education providers offer vocational or technical programmes. These were mainly
from the USA or the UK. These were twinning arrangements or programme-based
collaborations. There is no major foreign education provider operating in India
through its offshore campus or branch campus. Vast majority of students enrolled in
programmes offered by foreign providers were financed from personal funding
sources. A little more than a quarter also took education loans. The fee levels were
usually very high (Bhushan, 2006). Though, in terms of its size and impact, the
foreign education provision is small in the country, yet necessity to regulate foreign
providers and due to serious concerns about its quality, there has been focus on
foreign providers for over a decade now.
7.3. e Non-university sector
The post-1980s saw the growth of the non-university sector to meet the immediate
demand of skills from a growing economy. There was rapid expansion of
polytechnics and industrial training institutes for the training of supervisors in
industrial setting training of workers in various skills, respectively. The capacity
addition in these two categories of institutions was largely through private sector. In
259
addition, private for-profit training providers emerged to meet the growing demand
for usable training.
7. 4 Indian Higher Education Sector: Opportunities Ahead
India, today, has been considered as a talent pool of the world, having qualified and
educated human resources in abundance. This has been one of the primary reasons
for transformation of India into one of the fastest growing economies in the world
since liberalization in the 1990s. As the economist Clark Kerr observed, “On a
global scale, wealth and prosperity have become more dependent on the access to
knowledge than the access to natural resources.” The importance of education in
India was recognized by the founding fathers of the country and the subsequent
governments, and as a result considerable importance has been given to literacy,
school enrolment, institutions of higher education and technical education, over the
decades ever since independence.
India’s aspirations to establish a knowledge society in the context of increasing
globalization, is based on the assumption that higher and technical education
essentially empowers people with the requisite competitive skills and knowledge. It
has been realized that it is the quality of education that prepares one for all pursuits
of life and in the absence of an acceptable level of quality, higher education
becomes a mere formalism devoid of any purpose or substance. As a result, from
around the turn of the century, increasing attention has also been paid to quality and
excellence in higher education. Post-independence India has witnessed an above
average growth in the number of higher educational institutions vis-à-vis its
population. While there were just about 20 Universities and 500 Colleges at the time
of independence, today these numbers have grown exponentially. (Table 1. 1)
• Currently, the Government spends around 3.8% of its GDP on education
260
• Less than 1% of the $38 bn of the Government spend on education was towards
Capex (2008-09)
• According to the 2011 census, the total literacy rate in India is 74.04% compared
to the world average of 83.4% (2008)
• The female literacy rate is 65.46 % and male literacy rate is 82.14 %
• FDI inflows in the education sector during May 2012 stood at $31.22 mn
Industry Growth & Size
The Indian Education sector is characterized by a unique set of attributes:-
• Huge market size both in terms of number of students and annual revenues
• A potential growth rate of 16% is expected over the next 5 years
• Significant activity in terms of new foreign entrants and participation is expected
to be witnessed in the years ahead
• Accreditation is still not mandatory, however, reforms are in the pipeline to
address this issue
The Indian education space is evolving, which has led to the emergence of new
niche sectors like vocational training, finishing schools, child-skill enhancement and
e-learning among others. Growth is driven by the increasing propensity of the
middle class to spend on education and more aggressive initiatives by private
entrepreneurs.
7. 5 Higher Education in India: Current State of Play
India possesses a highly developed higher education system, which offers the
facility of education and training in almost all aspects of human creativity and
intellectual endeavors like: arts and humanities; natural, mathematical and social
sciences; engineering; medicine; dentistry; agriculture; education; law; commerce
and management; music and performing arts; national and foreign languages;
261
culture; communications etc. The institutional framework consists of Universities
established by an Act of Parliament (Central Universities) or of a State Legislature
(State Universities), Deemed Universities (institutions which have been accorded the
status of a university with authority to award their own degrees through central
government notification), Institutes of National Importance (prestigious institutions
awarded the said status by Parliament), Institutions established State Legislative Act
and colleges affiliated to the University (both government-aided and unaided)
7.6 Transformation from Elite to Mass Higher Education
At the time of India’s independence, the capacity of higher education system in
India was small. It catered to a small elite group only. With the expansion of higher
education, we now have a system that caters to a much larger number. The
expansion has also democratized higher education. A large number of students from
the lower socioeconomic strata constitute a sizeable proportion of the total
enrolments in the country comprising about thirty to forty per cent of the
enrolments. The enrolment of women students has seen a consistent upward trend
from 10 percent in 1950/51 to 40 percent in 2003/04. Though participation of
women students and students from scheduled castes, scheduled tribes, and the
minorities is rising over the years, it is uneven across disciplines. Their participation
in technical and professional programmes is pretty low (NIEPA, 2006). Despite the
enrolment in higher education for the country as a whole increasing over the years, it
varies widely across different states in India. These differences are not only linked to
variation in government expenditure on higher education, but also to the per capita
income, percentage of people below poverty line and the extent of urbanization in
different states. Generally, states with a higher enrolment in universities and
262
colleges are those with higher ratio of urban population and a lower percentage of
population below poverty line. (Anandakrishnan, 2004).
7.7India: Prospects for Emerging as a Knowledge Economy
The Prime Minister, Dr. Manmohan Singh (2005) has optimistically forecast that the
21st Century will be the “knowledge century”, by which he refers to the socio-
economic transformation that the country is projected to go through in the 21st
century as a result of knowledge creation. Mattoo (2009) explicates the notion
succinctly: “The whole idea of building a knowledge society is the idea of
empowering young men and women through education and ensuring that all our
delivery systems are built on the premise of the latest knowledge” (as cited in Bhatia
and Dash, 2010, p. 46).
In the next few decades, India is speculated to have the world’s largest set of young
people. While the correlation between higher education and nation building is
indisputable, the working age population can be an asset only if their potential
employability is brought to fruition. Conversely, if the state does not harness the
endowment, this demographic group can turn out to be a heavy economic and social
millstone. The Prime Minister, Mr. Singh affirmed the Government’s avowal thusly:
“the time has come to create a second wave of institution building and of excellence
in the field of education, research and capability building so that we are better
prepared for the 21st century”. With the singular purpose of modeling
recommendations and means to tap into this reservoir, the Government founded the
National Knowledge Commission (NKC) in 2005. The raison d'être was expressed
in the following declaration: “our demographic profile, with 550 million below the
age of 25, has the potential to constitute one-fourth of the global workforce by
2020” (as cited in Bhatia and Dash, 2010, p. 47).
263
The Commission aims to provide a channel to harness the country’s vast human
capital, more specifically the demographic dividends that accrue from the working
age population. The decision to set up the Commission suggests the Government’s
cognizance of the importance of developing the appropriate paradigm in which to
invest in intellectual capital by developing the skill set of the population and
encouraging research, innovation and entrepreneurship. It is important to take note
of the concern that no development schema is complete without plans that address
inclusion and welfare of all the beneficiaries. The idea of a knowledge economy is
bogus without egalitarianism and welfare priorities; it is imperative not to get carried
away by the pockets of excellence in higher education—IITs and IIMs, for instance.
The sobering fact of the matter is that there is a latent ongoing crisis in higher
education; the proportion of the population in the age group between 18 and 24 that
enrolls in higher education is in the range of seven per cent—a meager figure which
is only one half of the average for Asia. This paucity is only compounded with a
corresponding shortfall in quality of higher education.
Thus, we infer that if the higher education system in India is to benefit the economy
it has to be revamped systemically so it can reach as wide a base as possible without
watering down the merit. It is helpful to be mindful of the following key points and
statistics:
1. The number of higher education institutions in India has seen more than 50 fold
growth in the last six and half decades.
2. On a sobering note, the GER figure is 16.0% for the year 2010-11 (source:
MHRD 2011). Further, it is inequitably distributed across gender, socio-economic
and the rural-urban divide.
264
3. The considerable majority of higher education institutions in the vocational and
professional sphere are privately owned and managed.
4. India boasts one of the most daunting distance education systems in the world—
14 open universities and 120 distance education institutions.
5. It is slated to be the most populous country by 2030. More relevant to the
discussion at hand is the fact that more than half its population is younger than 25.
6. In spite of the fact that the vast majority of the population falls in the workforce
bracket, the skill level of the man power is inadequate, resulting in markedly low
productivity.
7. Pivotal to the discussion is the paradox that a significantly large number of
graduates are unemployed or under-employed along with an acute shortage of
skilled workers in the knowledge-intensive industry.
8. Paucity of skill intensive education is compounded by a parallel dearth of soft-
skills. The outcome is workforce that is far from globally competitive. This was
acknowledged and addressed by the Government’s eleventh five year plan.
It would be safe to infer that relevance and quality in higher education in India are
goals worth striving for.
7.8 The Government of India Initiatives to Impact Economy through Higher
Education
The Government of India (GoI) has been wise in taking note of the gains we stand to
accrue from investing in higher education. The following list of initiatives
undertaken by the Government is by no means comprehensive; nonetheless it
exemplifies the scope and nature of endeavors that are underway.
265
7.8. 1The University Grants Commission (UGC) 12th plan:
An initiative of the University Grants Commission, the Plan is structured to remedy
the fundamental lapses in the Indian higher education system. The plan mandates
that those autonomous colleges that show promise will be identified as “colleges
with potential for excellence” (CPE) and upgraded into universities. To this end, the
UGC has allotted over Rs 1,84,740 crore.
The guiding idea is to ease the load of universities which are typically overburdened
in terms of limited budget and administration of more colleges and students than is
adequate. Parallel to the idea is the goal of greater autonomy to existing colleges and
universities. It does so in very concrete terms: universities are not to have more than
fifty affiliated colleges; further, the total enrollment is not to exceed 50,000 students.
The advancement of both state and central colleges to universities is firmly
grounded in tangible performance evaluation; the criteria are spelled out clearly
enough to leave little room for distortion and misrepresentation.
The other stipulations are definitively welfare and affirmative in principle. The Plan
mandates more funds for the singular goal of increasing enrolment so as to improve
the national gross enrollment ratio (GER). The amendment will make grants
available to 20,000 more government and government aided colleges. The funds are
made available with the larger aim of banding together these colleges into “college
cluster universities”.
7.8.2 The National Skill Development Corporation India (NSDC)
The NSDC is remarkable in that it is a “public-private partnership”. It aims to
promote skill development by fostering vocational institutions. It operates through
advocacy and initiatives supported by the Government of India and industry
associations. The advocacy bit is carried out by “sector skills councils” which help
266
identify skill development needs, and “sector specific labor market information
system” which assist in the planning and delivery of training.
7.8.3The Ministry of Human resource Development (MHRD):
The responsibility of furthering higher education in accordance with the guidelines
laid out by the Government lies with the MHRD at the end of the day. The MHRD
sponsored initiatives include projects such as the “National Commission for Higher
Education and Research” (NCHER) and the “Education Tribunals Bill 2010”. The
Ministry has a division dedicated to working on initiatives to improve
internationalization of higher education. The International Cooperation Cell (ICC) is
responsible for projects related to institutional collaborations, quality assurance, and
scholarships and such. Among the noteworthy initiatives in international cooperation
are: India-US Higher Education Summit, Singh-Obama Knowledge Initiative,
UKIndia Education and Research Initiative, and United States India Educational
Foundation; further more, there is a whole gamut of collaborative and leadership
programs under the aegis of UNESCO.
7.8.4 The Confederation of Indian Industry (CII) initiatives in skill
development
The CII is credited with immense contribution to skills development in keeping with
the needs of Indian industries so as to further employability of the working
population. The CII also works to promote entrepreneurship and enterprise in the
country. It has launched its own “Skills Development Initiative” in line with the
National Skills Development Agenda with the goal of skill-training a target of 500
million people by the year 2022.
Dukkipati’s (2010) contention that skill/knowledge has spurred economic growth in
the country is perhaps the most important line of reasoning in this discussion. The
267
author argues that unlikeChina and the “Asian Tigers”, India’s economic growth has
not been impelled by manufacturing; instead, it is the skilled workforce that has
allowed India to step up on the economic ladder speedily. The author cites ICRIER
to report that India boasts the world’s largest pool of techno-engineering talent;
while India generates 400,000 engineers each year, the US only 60,000! The crux of
the author’s argument is that to continue with this upward trend—at the very least to
sustain the current growth rate, the country’s gross enrollment ratio (GER) would
have to increase from 12 to 20 percent by 2014. As impressive as the phenomenal
growth of higher education in India is, more concerted efforts are required to keep
the momentum going.
7.9 Internationalization of Higher Education in India and its Impact on the
Economy
The internationalization of higher education in India is fallout of the liberalization
that the country went through since the early nineties as part of a deliberate politico-
economic strategy by the State. This shift in stance took form hand in hand with an
ideological paradigm shift spawned by radical advancement in information
technology and media all over the world. The following three tables depict—in this
order—the number of international students in India, the geographic region that they
come from and the top ten countries that send the largest number of foreign students
in India: The Government of India has expressly proclaimed its intent to take
initiatives to strengthen the presence of international students in India in the interest
of public diplomacy (Agarwal). Internationalization of Indian universities has more
to it than altruistic and symbolic inspirations. From the political perspective, India’s
hegemonic position as the provider of higher education in the region strengthens its
overall diplomatic and ambassadorial status.
268
7.10 Modern Trends in the Higher Education Sctor
Over the past few decades, the global economy has shifted from being
manufacturing-centric to a knowledge-driven one and as countries move up the
ladder of development, the contributions of hi-tech manufacturing and high value-
added services to the GDP increases. Success in leveraging knowledge and
innovation is only possible with a sound infrastructure of higher education. A
successful education policy forms the foundation of all fields of national
development including political, social, economic, technical, scientific, and
environmental. Thus, the higher the quality of university education in a country, the
more prosperous and competitive are the people.
• Higher Education in India is decentralized under the DHE with separate councils
(e.g. AICTE, MCI etc.) responsible for the regulation of different streams
• The UGC has allocated a general budget of Rs.5,244 crores for the year 2011-2012
to be distributed under eight broad categories
• Private institutions in India are focusing more on professional courses such as
engineering, medical and MBA
• GER has increased to 15% in 2009-2010 from 11.5% in 2005-2006. GER for
2010-2011 has been estimated at 16%
• Faculty-wise the figure of enrolment of higher education for the year 2006-2007 &
2010-2011 has been increased in certain streams. These include arts, science,
commerce/management, medicine and agriculture. It has increased by 17.88%,
31.68%, 38.89%, 77.82% and 38.33% respectively
• Estimated population in 18-23 age group: 150 mn with GER of around 15%
269
12th 5 year plan and scope for Public Private Partnership
The 12th Fiver Year Plan focuses on Expansion, inclusion and quality to achieve the
national goals in education.
• During the 12th-Plan period, a target enrollment of 10 mn additional seats
equivalent to 3 mn seats for each age cohort is aimed at in the higher education
system. This would significantly increase the GER bringing it broadly in line with
the global average
• There is unanimous agreement of the fact that the private sector needs to be
involved to complement and supplement the efforts of the Government In the 12th
plan, the Planning Commission’s focus is on instilling “inclusive growth” in making
headway. The plan is expected to be one that encourages the development of India’s
education sector through government spending.
The emergence of India as a service-based, knowledge-driven economy has put the
spot light on human capital. Higher education is essential to build a workforce
capable of underpinning a modern, competitive economy. The process of broadening
access, making higher education inclusive, and promoting excellence initiated
during the 11th Plan must be consolidated and expanded further during the 12th
Plan. On the whole, with new regulatory arrangements and focused action in key
areas, particularly expansion and quality improvement, a robust higher education
system must be built such that it would sustain rapid economic growth, promote
international competitiveness, while at the same time meet the rising expectations of
the young enterprising Indians.
270
7.11 Indian Education Sector: Challenges facing Growth
a. Access and Equity
While India has made significant progress in ensuring access to primary education,
the proportion of students who remain in the education system until higher education
is considerably less. Ensuring equitable access to higher education is also a
challenge with disparities seen across gender, regions and socio-economic groups.
• Enrolment: In terms of GER in higher education, India with a GER of about 15%
lags behind to a great extent as compared to the developed world, as well as, other
developing countries, as illustrated in the figure below. With the rising levels of
enrolments in school education, the supply of higher education institutes is
insufficient to meet the growing demand in the country.
• Equity: According to data for 2009-101, while the GER in higher education in
India was 17.1 for males, it was only 12.7 for females. Additionally, while the
overall GER for the population was 15%, the corresponding figures for SCs and STs
were 11.1 and 10.3, respectively. There are regional variations too with Uttar
Pradesh having a GER of 10.9 while Delhi has a GER of 47.9. These figures reflect
some of the significant imbalances within the higher education system.
b. Quality
There are various dimensions of quality in education, including content, mode of
delivery, infrastructure and facilities, employability, etc. Ensuring quality in higher
education is amongst the foremost challenges being faced in India today, with few
institutes having achieved global recognition for excellence.
• Curriculum and Pedagogy: A key concern cited by higher education institutes is
271
the lack of autonomy with respect to framing course curriculum resulting in a course
structure that is often outdated. The curriculum is often not oriented to encourage
entrepreneurship and innovation among students. Additionally, the adoption of new
modes of delivery, such as technology-enabled learning, has not yet become
widespread.
• Infrastructure: Higher education institutes run by the public sector suffer from poor
physical facilities and infrastructure. The higher education system also suffers from
misalignment of supply in the sense that while there are courses in which the
demand is in excess of the available number of seats, there is excess capacity in
others
• Faculty: Faculty shortages and the inability of the state educational system to
attract and retain well-qualified teachers have been posing challenges to quality
education for many years. The quality of teaching is also often poor and there are
constraints faced in training the faculty
• Accreditation: As per the data provided by the NAAC, as of June 2010, “not even
25% of the total higher education institutions in the country were accredited. And
among those accredited, only 30% of the universities and 45% of the colleges were
found to be of quality to be ranked at 'A' level Industry Linkages: There are
insufficient levels of meaningful industry participation in aspects like curriculum
development, research and faculty exchange programmes. Placement services in
many universities are very limited resulting in a lack of co-ordination between
employment seeking graduates and prospective employers who are looking for
suitably qualified candidates
272
• Employability: The Indian education system on the whole is not aligned to the skill
and manpower needs of the market. Skills shortage across sectors is accompanied by
high levels of graduate unemployment, highlighting the need to include
employment-linked modules in courses. In addition to job-related skills, graduates
are often reported to be lacking adequate soft-skills such as communication and
inter-personal skills
• Research and Innovation: There is inadequate focus on research in higher
education institutes. The causes include insufficient resources and facilities, as well
as, limited numbers of quality faculty to advice students. According to the data from
2009, enrolment for Ph.D. / M.Phil. constitutes only 0.48% of enrolment in higher
education in India
c. Contribution to Regional development
An interesting point here would be the extent to which the city or region where the
university base or headquarters are situated is a factor of internationalization of the
university. Whitaker (2004) discusses the symbiotic relationship between cities or
“cluster regions” and internationalization of universities and colleges. She argues
that the agglomeration of services and businesses go to play an important role in
attracting international students. The strength of international students, in turn
encourages more businesses and services. She describes these economies as
“knowledge-based economies”. The concentration of educated and skilled
individuals leads to not only greater entrepreneurship, but also research and
development. Another outcome is that enterprises resulting from these “knowledge-
based economies” are more competitive in the global economy and more likely to
result in consumer satisfaction.
d. Management and Governance
273
The regulatory environment governing higher education in India has been the
subject of much debate. In particular, the envisioned role of the private sector needs
to be clearly defined, especially in wake of the need for more financial resources in
higher education. The higher education system also suffers from an over-centralized
structure.
• Regulatory environment: The regulatory environment governing higher education
in India is characterized by uncertainty and conflicts between multiple regulatory
authorities. The role of the private sector in higher education is essential, particularly
in the context of a shortage of financial resources for this segment. However, as
noted by the Working Group for Higher Education in the 12th Five-Year Plan
(2012-17), “while almost all major committees and policy documents have accepted
the need for increased involvement of private sector in higher education, there is
also lack of clarity on funding pattern, incentives, and regulatory oversight”. There
also remains regulatory confusion relating to the role that foreign higher education
institutes can play in the country. Some of the key regulatory hurdles have been
briefly explained below: – Philanthropic nature: The “not for profit” tag associated
with the higher education sector has been a major roadblock preventing
private/foreign investment. The higher education sector is capital intensive in nature
with requirement under law for procurement of minimum land, construction of
built-up infrastructure/libraries/hostels etc. It would be very challenging for any
private entrepreneur/ company to commit a huge investment without any return,
unless the goal is to fulfil corporate social responsibility.
– FDI Anomaly: The Government has permitted 100% investment in higher
education under the FDI Policy; however, the regulations prescribed by AICTE for
setting up technical institutions specifically prohibit direct or indirect investment.
274
Similar, issues are being faced for investment in universities and professional
institutions, which permit only Society/Trust and Section 25 Companies as entity
options – Restrictions on fees and course curriculum: The Government, through
various committees, has placed restrictions on fees, which can be charged for
various courses. Tax concerns: Determination of “arm’s length” pricing for service
transactions between two Indian related entities is challenging. In the recent past, the
Income Tax authorities have been maintaining an aggressive stand, which has
resulted in significant increase in number of litigations. Given the “not for profit”
tag, the private entrepreneurs have to be extremely cautious in pricing transactions
between educational institution and related private companies
– Lack of clarity under Foreign Education Bill, 2010: Although the bill is presently
pending in the parliament, even in its present form, it does not address certain key
issues such as nature of entity permitted, applicability of FCRA provisions, “not for
profit” character etc
• Financial resources – A shortage of financial resources for higher education is
amongst the key concerns in this sector. According to the Planning Commission’s
Approach to the 12th Five Year Plan document, “State universities and their
affiliated colleges that account for more than 90% of the enrolment suffer from
severe fund constraints and poor governance leading to poor quality”. The paper
notes that only approximately 18% of all government education spending or 1.12%
of GDP is spent on higher education, while the requirement is for these levels to
increase to 25% of the total education expenditure by the Government and 1.5% of
the GDP
e. Future Opportunities for Private & Foreign Sector Participation
The number of people entering the Indian higher education sector is growing at a
275
significant rate. According to MHRD data, enrolments have increased from 15.5 mn
(GER of 12.4%) in 2006-07 to 17.3 mn (GER of 15%) in 2009-10. These figures
also reflect an increasing number of young working-age people who continue in the
education system instead of dropping out. The number of people in the age bracket
of 15-24 years enrolled in educational institutes grew from approximately 30 mn in
2004-05 to over 60 mn in 2009-10*. These trends present a huge opportunity for
private & foreign sector players looking to provide quality education and services in
this sector.
7.12 SWOT Analysis
Despite the huge potential in the higher education sector, not everyone has been able
to achieve success. The challenges/threats, which the private sector players face in
India are significant and therefore, approaching the market with a well thought-out
strategy is advisable.
Indian Higher Education SectorConsolidated Working Group report for XII Five
Year Plan on Higher Education, Administration, Deloitte Analysis
Strengths
• Few globally renowned educational institutions
• Huge demand – estimated 150 mn population in 18-23 age group
• Growing middle class with increasing incomes
• Growing economy with numerous employment opportunities
• Huge demand for Indian students in overseas markets
Opportunities
276
• Unsaturated demand for quality global education
• Low GER of 15% in Higher education as compared to 84% in USA
• Sharp decline in dependency ratio predicted in the next 30 years
• India is expected to emerge as a Global hub in education in Asia Pacific region
• Low focus on R&D
Weaknesses
• Lack of infrastructure
• Shortage of trained faculty to meet the increased demand
• Highly complex and unclear regulatory framework at Central & State level
• Regional imbalances
• “Not for profit” tag in formal education
Threats
• High time lag in introduction of reforms due to various reasons
• Deterioration in quality of education specially in private sector due to lack of
availability of trained faculty
• Over regulation – Control over course curriculum, entrance tests, fees etc
7.13 Higher Education in India: Concerns and Directions for Future
277
The Indian higher education system is one of the largest such systems in the World.
It is estimated that during the XII Five Year Plan period (20012-17), there will be a
tremendous pressure of numbers on this system and a large number of additional
students will be knocking at the doors of higher education institutions in the country.
There are also new challenges of management and regulation being faced by these
institutions, which require serious attention, both at the institutions in the public
sector and also those in the private sector now growing at a fast pace. As a result, the
old structures of management established in pre-independent India and working
during most of the twentieth century are now required to undergo drastic changes.
Besides, the demands of the society for equity and accommodation cannot be
neglected any more.
The new regime under WTO where competence is the cardinal principle of success
in international operations has made it abundantly clear that the country should
exploit its excellent potential in higher education and training facilities and prepare
itself to export the Indian brand of education to foreign countries. Policy planning
and evolving strategies for this task are somewhat new for the country. But, this is
an opportunity which cannot be missed by India, as it offers interesting possibilities
for strengthening of the nation’s talent and resourcefulness. It is the primary
responsibility of the State to provide the eligible with good quality higher education
at reasonable cost. There shall be no withdrawal of the State from this responsibility.
In fact, the investment in this area by the State shall be stepped-up to 3% of the
GDP. This is essential for the intellectual strength of the State to address equity
concerns.
278
7.13. 1 Concluding observations:
In conclusion, the Indian economy is impacted by its higher education in a systemic
manner. The two have shared a causal relationship since India’s colonial past, and
have continued to evolve in a directly correlated fashion. The higher education
system contributes enormously to nation building given India’s demographic make-
up, the lacunae that the nation inherited from the British Raj as well as the plain fact
of being a developing economy. A cursory survey of chronological evolution of the
two systems reveals that insularity and parochialism have stunted our growth on
both the fronts. Thankfully, the failures have been driven home to the policy makers
and the Government has taken deliberate measures to reinvent the higher education
system as “knowledge economy”—an apt expression that captures the leadership’s
cognizance of the importance of the impact of higher education on economy.
279
CHAPTER 8
DATA ANALYSIS (A)
This chapter consists of analysis of the responses collected from faculties, students
and general public from private self financing engineering colleges of two different
states. Information is collected through three separate questionnaires.
1. To determine organizational culture of colleges information is collected from
faculties of different colleges.
2. To determine organizational performance and their opinion about colleges,
information is collected from students.
3. To determine social acceptability of the self financing Engineering colleges
and courses information is collected from general public.
Validation of the Questionnaire
The study uses three separate questionnaires for the collection of primary data on
organizational Culture, organizational performance and social acceptability from
faculties, students and general public respectively. They were validated after the
pilot study and the Cronbach’s Alpha scores for each questionnaire were found as
follows:
280
Questionnaires
Cronbach’s Alpha Score
No of Items
Mumbai Kochi
Organizational Culture .966 .934 64
Organizational Performance -922 -954 37
Social Acceptability .763
-916 17
Table no. 8.1 Cronbach’s Alpha Scores (Validation of the Questionnaire)
Organization Culture: Organizational culture is very important factor
inorganizational performance and social acceptability. To quantify organizational
culture of self financing engineering colleges, information is collected through
questionnaire. Responses given to questions are rated according to quality of
organization culture and mean scores are calculated.
Organization Culture: City- Four cities are chosen from two states, Karnataka
(Bangalore and Mysore) and Kerala (Kochi and Trivandrum) for the study. These
cities were chosen for the study based on the number of self financingengineering
colleges. The frequency, percentage and organization culture score based on city
under study is given below.
Name of Cities Number of
respondents
Percentage of
respondents
Organization Culture score
Bangalore 250 35.7 77.79
Kochi 150 21.4 63.83
Mysore 150
21.4
82.87
Trivandrum 150 21.4 69.04
Total 700 100.0 74.08
Table no: 8.2: Names of Cities, Frequency, percentage and organization culture
score based on city
281
Above table indicate that out of total 700 respondents, 250 (35.7%) respondents
represented Bangalore, 150 (21.4%) each from Kochi, Mysore and Trivandrum
respectively. The Mean score of Organization culture of Bangalore is 77.79, of
Kochi 63.83, of Mysore 82.87 and of Trivandrum is 69.04.
Organization Culture: State: The study is conducted in two states of South India,
Karnataka and Kerala. The frequency, percentage and organization culture score
based on state under study is given below.
Name of State Number of
respondents
Percent of
respondents
Organization
Culture score
Karnataka 400 57.1 79. 68
Kerala 300 42.9 66.61
Total 700 100.0 74.08
Table no: 8.3: Names of States and Frequency based on Organization Culture
Above table indicates that out of total700 respondents, 400 respondents represented
from Karnataka and 300 represented Kerala. The Mean score of Organization
culture of Karnataka is 79.68 and Kerala is 66.61.
Organization Culture: Age: All the respondents were divided into 4 categories
based on their age as Below 30 years. Between 31-40 years, between 41 – 50 years
and above 50 years. The frequency, percentage and organization culture score based
on age group is given below.
282
Age Group Frequency Percent Organization Culture
Below 30 years 184 26.3 69.13
31 to 40 years 254 36.3 79.32
41 to 50 years 169 24.1 73.82
Above 50 years 93 13.3 71.20
Total 700 100.0 74.08
Table no: 8. 4: Age Groups, Frequency and percentage and Organization
Culture score based on age groups
Above table indicates that out of total 700 respondents, (1) 254 (36.3%) respondents
represented an age group of 31 to 40 years, (2) 169 (24.1%) represented age group
of 41 to 50 years, (3) 93 (13.3%) represented age group Above 50 years, and (4)
184 (26.3%) represented age group below 30 years. (1) Shows a mean score of
79.32, (2) shows a mean score of 73.82 (3) shows a mean score of 71.20 and (4)
shows a mean score of 69.13.
Organization Culture: Gender: The respondents in the study are categorized
according to gender. The frequency, percentage and organization culture score based
on gender is given below.
Gender Frequency Percent Organization Culture
Female 346 49.4 73.72
Male 354 50.6 74.44
Total 700 100.0 74.08
Table no: 8.5: Gender, Frequency and percentage and Organization Culture
score based on gender
283
Above table indicates that out of total700 respondents, 346 persons (49.4%) are
FEMALE and 354 (50.6) are MALE. The mean score of Organizational Culture for
Female is 73.72 and for Male is 74.44.
Organization Culture: Qualification: The respondents in the study are categorized
according to their qualification. They are divided between two categories Post
Graduate and Doctorate. The frequency, percentage and organization culture score
based on qualification is given below.
Qualification Frequency Percent Organization Culture
Doctorate 43 6.1 79.74
Post Graduation 657 93.9 73.71
Total 700 100.0 74.08
Table no: 8.6: Qualification, Frequency and percentage and Organization
Culture score based on Qualification
Above table indicates that out of total700 respondents, 43 persons (6.1%) are with
Doctorate and 657(93.9%) are Post Graduates. The mean score of Organizational
Culture for Doctorate group is 79.74 and for Post Graduate is 73.71.
Organization Culture: Designation: The respondents in the study are categorized
according to their designation. They are divided between four categories Associate
professors, Assistant Professors, Others and Professors.. The frequency, percentage
and organization culture score based on designation is given below.
284
Designation Frequency Percent Organization Culture
Asst Professor 285 40.7 74.72
Associate Professor 58 8.3 79.55
Professor 88 12.6 81.57
Other 269 38.4 69.77
Total 700 100.0 74.08
Table no: 8.7: Designation, Frequency and percentage and Organization
Culture score based on Designation
Above table indicates that out of total700 respondents, 58 are Associate Professors
(8.3%), 285 (40.7% ) Asst. Professors, 269 (38.4%) Other Designations and 88
(12.6%) are Professors. The mean score of Organizational Culture for the Associate
Professors is 79.55. Assistant Professors 74.72, Others 69.77 and for Professors is
81.57. Above information is presented using pie-diagram as shown below.
Organization Culture: Total Experience as a Faculty: The respondents in the
study are categorized according to their total experience as a faculty. They are
divided between three categories as Experience of Less than 5 years, Experience
between 5 – 10 years and Experience of more than 10 years. The frequency,
percentage and organization culture score based on Total experience as a faculty is
given below.
Faculty Experience Frequency Percent Organization Culture
Less than 5 yrs 267 38.1 74.83
5 to 10 289 41.3 74.11
More than 10 144 20.6 72.61
Total 700 100.0 74.08
Table no: 8.8: Total Experience as a faculty, Frequency and percentage and
Organization Culture score based on Qualification
285
Above table indicates that out of total700 respondents, 289 (41.3%) possess an
experience of 5 to 10 years as Faculties, 267 (38.1%) have an experience less than 5
yrs and 144 (20.6%) have an experience more than 10 years. Those with experience
of 5-10 years have the mean score of 74.11, those with experience less than 5 years
have a score of 74.83and those with experience more than 10 years have a score of
72.61.
Organization Culture: Experience as a Faculty in Present Organization: The
respondents in the study are categorized according to their experience as a faculty in
the present organization. They are divided between three categories as Experience of
less than 5 years, Experience between 5 – 10 years and Experience of more than 10
years. The frequency, percentage and organization culture score based on experience
as a faculty in the present organization is given below.
Total Experience Frequency Percent Organization Culture
5 to 10 232 33.1 73.40
Less than 5 384 54.9 74.22
More than 10 84 12.0 75.28
Total 700 100.0 74.08
Table no:8.9: Experience in the present Organization, Frequency and
percentage and Organization Culture score based on Experience
Above table indicates that out of total700 respondents, 232 (33.1%) possess an
experience of 5 to 10 years as Faculties, 384 (54.1%) have an experience less than 5
yrs and 84 1(2.0%) have an experience more than 10 years. Those with experience
of 5-10 years have the mean score of 73.40, those with experience less than 5 years
286
have a score of 74.22 and those with experience more than 10 years have a score of
75.28. Above information is presented using pie-diagram as shown below.
Organization Culture: Industry Experience: The respondents in the study are
categorized according to their Industry experience. They are divided between four
categories as Experience of less than 5 years, Experience between 5 – 10 years and
Experience of more than 10 years and No experience. The frequency, percentage
and organization culture score based on Industry experience is given below.
Industry Experience Frequency Percent Organization Culture
Less than 5 366 52.3 74.66
5 to 10 207 29.6 73.23
More than 10 103 14.7 73.64
No Experience 24 3.4 75.18
Total 700 100.0 74.08
Table no: 8.10: Industry Experience, Frequency and percentage and
Organization Culture score based on Industry experience
Above table indicates that out of total700 respondents, 207 (29.6 %) possess an
experience of 5 to 10 years as Faculties, 366 (52.3%) have an experience less than 5
yrs and 103 (14.7 %) have an experience more than 10 years and 24 (3.4%). Those
with experience of 5-10 years have the mean score of 73.23, those with experience
less than 5 years have a score of 74.66, with experience more than 10 years have a
score of 73.64, and with no experience have the mean score of 75.18.
287
ORGANIZATIONAL PERFORMANCE
Organizational Performance is another independent variable in the study. It is also
considered to be very important factor in the study. . To quantify organizational
performance of private self financing engineering colleges information is collected
through questionnaire. Responses given to questions are rated according to quality
of organization performance and mean scores are calculated.
Organizational Performance – City: Four cities are chosen from two states,
Karnataka (Bangalore and Mysore) and Kerala (Kochi and Trivandrum) for the
study. These cities were chosen for the study based on the number of self
financingengineering colleges. The frequency, percentage and organization
performance score based on city under study is given below.
City Frequency Percent Organizational
Performance
Bangalore 600 38.7 72.25
Kochi 350 22.6 67.79
Mysore 200 12.9 71.69
TVM 400 25.8 67.18
Total 1550 100.0 69.86
Table no: 8.11: Names of Cities, Frequency, percentage and organizational
performance score based on city
Above table indicate that out of total1550 respondents, 600 (38.7%) respondents
represented Bangalore, 350 (22.6%) from Kochi, 200 (12.9%) from Mysore and 400
(25.8) from Trivandrum respectively. The Mean score of Organization performance
of Bangalore is 72.25, of Kochi 67.79, of Mysore 71.69 and of Trivandrum is
67.18. Above information is presented using pie-diagram as shown below.
288
Organizational Performance –State: The study is conducted in two states of
South India, Karnataka and Kerala. The frequency, percentage and organization
performance score based on state under study is given below.
State Frequency Percent Organizational Performance
Karnataka 800 51.6 71.97
Kerala 750 48.4 67.49
Total 1550 100.0 69.86
Table no: 8.12: Names of States, Frequency, percentage and organizational
performance score based on state
Above table indicates that out of total1550 respondents, 800 (51.6) respondents
represented from Karnataka and 750(67.49) represented Kerala. The Mean score of
Organization performance of Karnataka is 71.97 and Kerala is 67.49.
Organizational Performance– Gender: The respondents in the study are
categorized according to gender. The frequency, percentage and organization
performance score based on gender is given below.
Gender Frequency Percent Valid Percent Organizational
Performance
Female 697 45.0 45.0 69.93
Male 853 55.0 55.0 69.80
Total 1550 100.0 100.0 69.86
Table no: 8.13: Gender, Frequency, percentage and organizational
performance score based on gender
289
Above table indicates that out of total1550 respondents, 697 (45%) are FEMALE
and 853 (55%) are MALE. The mean score of Organizational performance for
Female is 69.93 and for Male is 69.80.
Organizational Performance –Year of Study: The respondents under study are
categorized according to the year of study as First years, second years, third years
and final years. The frequency, percentage and organization performance score
based on gender is given below.
Year of Study Frequency Percent Organizational Performance
First Year 290 18.7 73.32
Second Year 523 33.7 70.88
Third Year 468 30.2 68.05
Final Year 269 17.4 67.31
Total 1550 100.0 69.86
Table no: 8.14: Year of Study, Frequency, percentage and organizational
performance score based on year of study
Above table indicates that out of total1550 respondents, 269 (17.4%) are Final
Years. 290(18.7%) First Years, 523 (33.7%) Second years and 468(30.2%) are Third
years. The mean score of Organizational Performance of final years is 67.31, First
years 73.32, second years 70.88 and of third years is 68.05.
Organizational Performance –With whom you Stay: The respondents are
categorized according to with whom they stay. In this categories are college hostel.
Parents, paying guests, and sharing private room. The frequency, percentage and
organization performance score based on parent’s qualification is given below.
290
With Whom you Stay Frequency Percent Organizational Performance
College Hostel 583 37.6 70.95
Parents 527 34.0 69.86
Paying Guest 194 12.5 68.11
Sharing Private Room 246 15.9 68.65
Total 1550 100.0 69.86
Table no: 8.15: With whom you Stay, Frequency, percentage and
organizational performance score based on with whom you stay
Above table indicates that out of total1550 respondents, 583 (37.6%) are staying in
College Hostel, 527 (34%) stay with parents. 194 (12.5%) stay as paying guests and
246 (15.95%) share private rooms. The mean score of Organizational Performance
of those respondents in the college hostel is 70.95, those staying with parents is
69.86, those who are paying guests is 68.11 and of those sharing private rooms is
68.95.
Organizational Performance –Parent’s Qualification: Here in this categorization
performance is measured is based on parent’s qualification. The categories are At
least on graduate, both graduates, both non graduates, both post graduate and both
uneducated. The frequency, percentage and organization performance score based
on parent’s qualification is given below.
291
Parents qualification Frequency Percent Organizational Performance
At least one graduate 414 26.7 71.14
Both Graduate 648 41.8 68.78
Both non graduates 313 20.2 70.83
Both Post graduate 137 8.8 68.38
Both Uneducated 38 2.5 71.69
Total 1550 100.0 69.86
Table no: 8.16: Parents’ Qualification, Frequency, percentage and
organizational performance score based on parents’ qualification
Above table indicates that out of total1550 respondents, parents of 414 (26.7%) are
at least one graduate, 648 (41.8%) parents both are graduates. 313 (20.2%) parents
both are non graduates, 137 (8.8%) share parents both are post graduate. And 38
(2.5%) parents both are uneducated. The mean score of Organizational Performance
of Parents at least one graduate is 71.14, Parents both Graduates 68.78, Parents both
non graduates 70.83, parents both post graduates 68.38 and parents both uneducated
is 71.69. Above information is presented using pie-diagram as shown below.
Organizational Performance –Family Income: Here in this categorization
performance is measured is based on parent’s qualification. The categories are
Family Monthly Income below 25, family monthly income between 25,000-50,000,
and Family Monthly Income above 50,000. Organization performance score based
on Family Monthly Income is given below.
292
Family Income Frequency Percent Organizational Performance
Below Rs 25,000 309 19.9 71.35
25,000 to 50,000 773 49.9 68.71
Above Rs 50,000 468 30.2 70.78
Total 1550 100.0 69.86
Table no: 8.17: Family Income, Frequency, percentage and organizational
performance score based on family income
Above table indicates that out of total1550 respondents, 773(49.9%) are between a
family income of 25,000 to 50,000, 468 (30.2%) with an income Above 50,000, 309
(19.9%) with an income below 25,000 The mean score of Organizational
Performance on Middle Income group is 68.71, High Income group is 70.78 and
Low income group is 71.35.
SOCIAL ACCEPTABILITY
Social Acceptability: Social acceptability is the dependent variable in the study.
The study tries to measure the impact of Organizational culture and organizational
performance on social acceptability. To quantify social acceptability of self
financing engineering colleges, information is collected through questionnaire.
Responses given to questions are rated according to quality of organization culture
and mean scores are calculated.
Social Acceptability: City Four cities are chosen from two states, Karnataka
(Bangalore and Mysore) and Kerala (Kochi and Trivandrum) for the study. These
cities were chosen for the study based on the number of self financingengineering
colleges. The frequency, percentage and organization culture score based on city
under study is given below.
293
Name of City Frequency Percent Social Acceptability
Bangalore 200 25.0 66.01
Kochi 200 25.0 50.07
Mysore 200 25.0 67.14
Trivandrum 200 25.0 50.13
Total 800 100.0 58.33
Table no: 8.18: Names of Cities, Frequency, percentage and Social
Acceptability score based on city
Above table indicate that out of total 800 respondents, 200 each fall under each city
and each city represents 25% of the sample size. And the score of social
acceptability for the city of Bangalore is 66.01, for Kochi 50.07, city of Mysore
67.14 and for Trivandrum 50.13.
Social Acceptability: States The study is conducted in two states of South India,
Karnataka and Kerala. The frequency, percentage and social acceptability score
based on state under study is given below.
Name of State Frequency Percent Social
Acceptability
Karnataka 400 50.0 66.57
Kerala 400 50.0 50.19
Total 800 100.0 58.33
Table no: 8.19: Names of States, Frequency, percentage and Social
Acceptability score based on states
294
Above table indicate that out of total 800 respondents, 400 each fall under each state
and each state represents 50% of the sample size. And the score of social
acceptability for Karnataka is 66.057 and for Kerala is 50.19.
Social Acceptability- Age: the respondents were divided into 4 categories based on
their age as Below 30 years. Between 31-40 years, between 41 – 50 years and
Above 50 years. The frequency, percentage and organization culture score based on
age group is given below.
Age Group Frequency Percent Social Acceptability
score
Below 30 239 29.9 66.16
31 to 40 418 52.3 54.88
41 to 50 100 12.5 62.94
Above 50 43 5.4 66.16
Total 800 100.0 58.33
Table no: 8.20: Age Groups, Frequency, percentage and Social Acceptability
score based on age groups
Above table indicate that out of total 800 respondents,418 respondents fall the age
group of 31-40 (52.3%), 100 respondents in the category of 41-50, 43 respondents
Above 50 category and 238 (29.9% in the Below 30 category and each city
represents 25% of the sample size. And the score of social acceptability for the
category below 30 is 66.16, between 31-40 is 54.88, 41-50 has a mean score of
62.94 and for those above 50 has a mean score of 66.16.
295
Social Acceptability: Gender: The respondents in the study are categorized
according to gender. The frequency, percentage and social acceptability mean score
based on gender is given below.
Gender Frequency Percent Social Acceptability
Female 414 51.7 57.24
Male 386 48.3 59.61
Total 800 100.0 58.33
Table no: 8.21: Gender, Frequency, percentage and Social Acceptability score
based on gender
Above table indicate that out of total 800 respondents, 414 respondents fall in the
category of FEMALE and 386 respondents in the category of MALE. The score of
social acceptability for the category of female is 57.24 and for male is 59.61.
Social Acceptability: Qualification: The respondents were divided into 5
categories based on their qualification as Below SSC, Graduates, Non Graduates,
Others and Post Graduate. The frequency, percentage and organization culture score
based on age group is given below.
Qualification Frequency Percent Social Acceptability
Below SSC 25 3.1 53.73
Non Graduate 50 6.3 60.84
Graduate 404 50.5 56.25
Post Graduate 307 38.4 61.03
Other 14 1.8 61.36
Total 800 100.0 58.33
Table no: 8.22: Qualification, Frequency, percentage and Social Acceptability
score based on qualification
296
Above table indicate that out of total 800 respondents, 25 (3.1%) respondents fall in
the category of Below SSC, 404 (50.5%) respondents in the category of Graduates,
50 (6.3%) respondents the category of Non Graduates, 14(1.8) in other category and
307 (38.4) in the category of post graduates. The score of social acceptability for
the category of Below SSC is 53.73, Graduate is 56.25, Non Graduate is 60.84,
Others 61.36 and Post Graduate is 61.03.
Social Acceptability: Monthly Income: The respondents were divided into 4
categories based on their monthly income as Below 10,000 between 10, score based
on age group is given below. 000 to 25,000, between 25 to 50 and Above 50,000.
The frequency, percentage and organization culture
Monthly Income in Rs Frequency Percent Social Acceptability
Below 10000 62 7.8 66.95
10,000 to 25,000 330 41.3 54.84
25,000 to 50,000 274 34.3 58.85
Above Rs 50,000 134 16.8 62.21
Total 800 100.0 58.33
Table no: 8.23: Monthly Income, Frequency, percentage and Social
Acceptability score based on Monthly Income
Above table indicate that out of total 800 respondents, 330 (41.3 %) respondents fall
in the category of 10,000 to 25,000, 274 (34.3 %) respondents in the category
25,000 to 50,000, 134 (16.8%) respondents the category of Above 50.000, 62
(7.8%) in below 10.000 category. The score of social acceptability for the category
297
Between 10,000 to 25,000 is 54.84, 25,000 to 50,000 is 58.58, Above 50,000 is
62.22and Below 10,000 is 66.96.
Social Acceptability: Occupation: Respondents were divided into 4 categories
based on their occupation as Business, Others, Professionals and service. The
frequency, percentage and organization culture
Occupation Frequency Percent Social Acceptability
Business 111 13.9 58.02
Others 356 44.5 57.76
Professional 248 31.0 59.37
Service 85 10.6 58.56
Total 800 100.0 58.33
Table no: 8.24: Occupation, Frequency, percentage and Social Acceptability
score based on Occupation
Above table indicate that out of total 800 respondents, 111 (13.9 %) respondents fall
in the category of Business, 356 (44.5 %) respondents in the category Others, 248
(31%) respondents the category of Professional, 85 (10.6%) in Service category.
The score of social acceptability for the category Between Business is 58.02, Others
is 57.76, Professional is 59.37and Service is 58.56.
298
Analysis of Organization Culture
Organization Culture can be defined as the values and behaviors that contribute to
the unique social and psychological environment of an organization. It represents the
set of shared values and norms that characterize a particular organization. The
present study is an attempt to understand the impact of organizational culture
together with organizational performance on social acceptability.
Important factors that are used to understand Organizational Culture in the
study are the following:
1. Attitude towards students
2. Teaching Skill
3. Campus placement facility
4. Faculty Morale
5. Organizational Glue
6. Leadership Practices
7. Professional Satisfaction
1. Attitude towards students
Attitude stands for a relatively enduring organization of beliefs, feelings, and
behavioral tendencies towards socially significant objects, groups, events or
symbols" An academic institution is supposed to hold the students as its centre. If
the organization holds a right attitude towards the students it is said to be in the right
direction.
299
A. Attitude towards students
Sr
No. Question Detail
Strongly
Disagree Disagree Agree
Strongly
Agree
A1 The organization keeps the students
at heart 31 67 453 149
A2 Students are treated respectfully by
everyone 63 67 384 186
A3
The organization work culture
promotes
risk taking for the well being of the
students
47 91 340 222
A 4
Service offered by various facilitating
units viz. library, canteen, computer
labsare students friendly.
49 67 376 208
Table no: 8.25: Attitude towards students as a factor of Organization Culture
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
300
Descriptive Statistics
N Minimu
m
Maximu
m Mean
Std.
Deviation
Attitude towards
students 700 37.50 100.00 75.83 12.84
Table no: 8.26: Descriptive Statistics of Attitude towards students
as a factor of Organization Culture
2. Teaching Skill
The primary objective of an educational institution is to impart knowledge to the
students. Major part of this is carried out by the faculties. The teaching skill of the
faculties is a variable that would explain how well the primary objective of an
organization is fulfilled.
B. Teaching Skill
Sr
No. Question
Strongly
Disagree Disagree Agree
Strongly
Agree
B1
The learning objectives of the
studies are explained to students
by the teachers.
53 55 397 195
B2
The assessment criteria for the
studies are explained to students
at the beginning the academic
year.
50 70 340 240
B3 Teachers’ professional skills are
up-to-date. 56 85 341 218
B4 Teachers get enough supportive
feedback from the students. 52 92 361 195
B5
Student’s feedback on studies is
considered with seriousness by
the faculties.
52 81 374 193
B6
Students’ different backgrounds
were taken into account in
instruction.
65 97 335 203
Table no: 8.27: Teaching Skill as a factor of Organization Culture
301
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students = Sum of scores of all questions * 100
Maximum score of all questions
Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
Teaching skill score 700 33.33 100.00 75.64 12.98
Table no: 8.28: Descriptive Statistics of Teaching Skill as a factor of
Organization Culture
3. Campus Placement Facility
Campus placement facility available to the students in a college is another aspect of
the organization culture. Every student who joins in an engineering college together
with the skills he/she acquires in the college looks forward to getting himself
equipped to get a proper placement. Moreover the placement oriented training in the
organization will give objectivity to the programme.
C. Campus Placement Facility
302
Sr
No. Question
Strongly
Disagree Disagree Agree
Strongly
Agree
C1
Institution provides campus
placement facility to the
deserving students.
100 89 349 162
C2
Good number of companies
participates in campus placement
drive.
83 149 369 99
C3 Reputed companies participate at
campus placement drive. 88 197 321 94
C4
Faculties provide soft skill
training and prepare for group
discussions and personal
interview.
96 113 318 173
C5 Package offer at campus
placement is satisfactory. 74 150 392 84
Table no: 8.29: Campus Placement Facility as a factor of Organization Culture
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
Placement facility score 700 25.00 100.00 68.08 16.62
Table no: 8.30: Descriptive Statistics of
Campus Placement Facility as a factor of Organization Culture
4. Faculty Morale
303
The term MORALE is the capacity of a group's members to maintain belief in an
institution or in its goal. It is the trust the group put attaches with the goals of the
organization or the esteem the members of the organization have towards the
organization of which they form part of.
D. Faculty Morale
Sr
No. Question
Strongly
Disagree Disagree Agree
Strongly
Agree
D1
The organization of the
department enhance my ability to
be a successful faculty member
48 102 371 179
D2
The performance of the
department chair of our college
in administering the department is
excellent
51 85 372 192
D3
There is appropriate number of
full-time faculty to support our
department's programs
31 104 354 211
D4 The overall rate of faculty morale
of our college is very high 41 117 368 174
D5
The quality of current faculty that
works in the department is rated
very high
40 77 409 174
Table no: 8.31: Faculty Morale as a factor of Organization Culture
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
304
Maximum score of all questions
Descriptive Statistics
N Minimu
m
Maximu
m Mean
Std.
Deviation
Faculty Morale Score 700 40.00 100.00 75.16 12.68
Table no: 8.32: Descriptive Statistics of
Faculty Morale as a factor of Organization Culture
5. Organizational Glue
Organizational Glue is the bonding mechanisms that hold the organization together,
an organization that is made up of people, if not properly bonded it will fail in
strategically reaching its organizational objective. It is an important element of
organizational building up.
E. Organizational Glue
Sr
No. Question
Strongly
Disagree Disagree Agree
Strongly
Agree
E1
In my organization, people
openly discuss mistakes in order
to learn from them.
55 126 383 136
E2
In my organization, people
identify skills they need for future
work tasks.
61 106 400 133
E3
In my organization, people help
each other learn.
46 74 382 198
E4
In my organization, people view
problems in their work as an
opportunity to learn.
39 114 348 199
E5
In my organization, people give
open and honest feedback to each
other.
48 143 376 133
Table no: 8.33:
Organizational Glue as a factor of Organization Culture
Response given to above mentioned question is rated as follows.
305
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Descriptive Statistics
N Minimu
m
Maximu
m
Mean Std.
Deviation
Organizational Glue Score 700 25.00 100.00 73.12 12.79
Table no: 8.34: Descriptive Statistics of
Organizational Glue as a factor of Organization Culture
6. Leadership Practices
Leadership practices are the traits and abilities most commonly seen in leaders
which stands on the way as a model towards achieving organizational objective,
inspires a shared vision, challenges the process etc, If the leadership practices are
not capable of inspiring the members for achievement the organization culture might
not be conducive to progress and growth.
F. Leadership Practices
306
Sr
No. Question
Strongly
Disagree Disagree Agree
Strongly
Agree
F1 I receive a proper mentoring in
the organization 61 110 400 129
F2
I am pushed to innovations and
risks for the well being of the
institute
71 112 326 191
F3 There is proper coordination in
our work culture 68 105 346 181
F4
Everything we do in the
institution are properly organized
and efficiency oriented
76 115 334 175
F5 The leaders look for result
oriented practices 75 101 343 181
F6 There is an aggressive focus on to
the achievements 54 108 344 194
F7 There is proper communication
network within the organization 63 114 348 175
Table no: 8.35:
Leadership Practices as a factor of Organization Culture
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
307
Descriptive Statistics
N Minimu
m
Maximu
m Mean
Std.
Deviation
Leadership Score 700 25.00 100.00 72.57 13.47
Table no: 8.36: Descriptive Statistics of
Leadership Practices as a factor of Organization Culture
G. Professional Satisfaction
Professional satisfaction talks about the personal fulfillment an individual
experiences when they engage themselves in work and that they find meaningful
environment on the work place. It explains their feeling of being in the right job and
in the right place.
G. Professional Satisfaction
Sr.
No. Question A B C D
G1 How would you characterize the head
of your unit as a leader? 50 151 293 206
G2
How would you characterize the vision
the head of your department has for the
Institution?
55 122 262 261
G3
Do policies exist for recruiting and
retaining faculty that reflect a sound
plan for improving the quality of
faculty?
77 190 241 192
G4 How does your department evaluate
the teaching performance of faculty? 41 200 229 230
G5
To what degree do you find the means
by which teaching performance is
assessed in your department effective?
46 175 303 176
Table no: 8.37:
Professional Satisfaction as a factor of Organization Culture
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
308
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Professional Satisfaction
Score 700 30.00 100.00 72.77 17.28
Table no: 8.38: Descriptive Statistics of Professional Satisfaction
as a factor of Organization Culture
All scores are considered together and presented in the following table.
Factors of organization culture Mean score
Attitude towards students 75.83
Teaching skill 75.64
Placement facility 68.08
Faculty morale 75.16
Organisational glue 73.12
Leadership 72.57
Professional satisfaction score 72.77
Table no: 8.39:
Mean Scores of factors of Organization Culture at a glance
All score explained in the table are presented in the form Bar Diagram.
309
Diagram No. no: 8.1
Mean Scores of factors of Organization Culture at a glance
Taking into consideration of all individual factors of organization culture, overall
score is calculated.
Organization Culture Score for all 700 respondents.
Organization Culture N Minimum Maximum Mean Std.
Deviation
Organization culture score 700 46.88 99.22 74.08 10.44
Table No. : 8.40
Mean Scores of factors of Organization for all respondents
The table gives the mean score of Organization score in both the states Karnataka
and Kerala and it is found as 74. 08
Analysis of Organizational Performance
75.83 75.64
68.08
75.16
73.12 72.57 72.77
64
66
68
70
72
74
76
78
Att
itu
de
tow
ard
s
stu
den
ts
Tea
chin
g
skil
l
Pla
cem
en
t
facil
ity
Facu
lty
mo
rale
Orga
nis
ati
on
al
glu
e
Lea
der
ship
Pro
fess
ion
al
sati
sfact
ion
sco
re
Me
an s
core
in p
er
cen
t
Diagram of scores of factors of organisational culture
310
Organizational performance comprises the actual output or results of an organization
measured against its intended outputs (objectives of the organization). IT is quite
simply the way in which the people who comprise your organization work together.
Organizational performance encompasses three specific areas of firm outcomes: (1)
financial performance (profits, return on assets, return on investment, etc.); (2)
market performance (sales, market share, etc.); and (3) shareholder return (total
shareholder return, economic value added, etc.). But in the discussion of an
educational institution the parameters were contextualized suited to measure the
outcomes of such services.
In the present study the following factors are considered to measure the social
acceptability:
1. Infrastructure
2. Library Facility
3. Canteen/Catering Facility
4. Level of Goodwill
5. Placement Facility
6. Institutional Strengths
1. Infrastructure
A few elements on process performance were asked as the organizational
performance was being measured. The Infrastructural facilities, its maintenance and
up- keep add to the effective performance measurement. Infrastructure of an
educational institution matters much in terms of its performance.
A. Infrastructure
311
Sr. No Question Strongly
Disagree Disagree
Agre
e
Stron
gly
Agree
A 1 The institution’s public areas are
clean and pleasant. 224 252 838 235
A 2 The class rooms in the institution
are clean and pleasant. 173 177 891 309
A3 Lighting in the study premises is
appropriate. 188 319 619 424
A 4
There are enough signs boards at the
institution for locating different
sites.
83 281 887 299
A5 My belongings are safe and secure
at the institution. 147 280 851 272
A6 There are enough parking
arrangements for students’ vehicles. 114 227 835 374
A7 There is convenient transport
facility for students 149 267 791 343
A8 There are sufficient toilet facilities
in our campus 203 347 779 221
Table no: 8.41:
Infrastructure as a factor of Organizational Performance
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
312
N Minimum Maximum Mean Std.
Deviation
Infrastructure 1550 28.13 100.00 70.48 11.92
Table no: 8.42:
Descriptive Statistics of Infrastructure as a factor of Organizational
Performance
2. Library Facility
Library Facilities were specifically assessed as it is termed as the ‘Power House’ of
an educational institution. Since the private self educational Institutions are of recent
origin, how far the focus was given to acquiring and maintaining a resourceful
library would give a standard for organizational performance.
B. Library facility
Sr. No Question Strongly
Disagree Disagree Agree
Strongly
Agree
B 1 The supply of books is sufficient. 180 295 853 222
B 2 The range of professional journals is
sufficient. 90 249 894 317
B 3 The library’s opening hours suits
me. 181 298 702 369
B 4 The library services are user
friendly. 116 281 857 296
B 5 I can get help in using the library
services when I need it. 148 347 815 240
Table no: 8.43:
Library Facility as a factor of Organizational Performance
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
313
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Library Score 1550 25.00 100.00 70.30 13.17
Table no:8.44:
Descriptive Statistics of Library Facility as a factor of Organizational
Performance
3. Catering/Canteen facility
One more element of process performance, which is the measurement was intended
to look at the availability of a proper canteen/catering service to the students, within
the campus arena.
A. Catering/Canteen facility
Sr. No Question Strongly
Disagree Disagree Agree
Strongly
Agree
C 1 The canteen premises are neat and
tidy 172 331 920 127
C 2 The canteen/catering services
function well 192 634 576 148
C 3 The menu in the canteen is suitable
for students. 166 648 569 167
C 4 The quality of food is good. 158 625 573 194
C 5 The opening hours of canteen are
suitable for students. 131 289 959 171
Table no:8 .45:Canteen/catering Facility as a factor of Organizational
Performance
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
314
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Table no: 8.46: Descriptive Statistics of Canteen/Catering Facility as a factor
of Organizational Performance
4. Level of Good Will
This element as ‘goodwill’ measured the satisfaction of the students over its
performance in various aspects. Since the performance element of the organization
was to measure from the category of students, the overall satisfaction of the students
would talk about the concept of performance as results meeting the objectives.
D. Level of Good Will
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Canteen Facility
Score 1550 25.00 100.00 64.16 13.09
315
F 1 I feel my decision about studying
in this college is correct. 116 193 1018 223
F 2 I feel proud to be part of this
educational institution. 92 283 868 307
F 3 I have a feeling of security in this
campus 91 286 704 469
F 4 The college ambience helps to
grow as a healthy individual 106 227 878 339
F 5
There is always a community
feeling and sense of
belongingness to the institution
94 282 877 297
F 6 I will recommend this college to
my friends and relatives. 150 298 839 263
Table no: 8.47:
Level of Good Will as a factor of Organizational Performance
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Good will score 1550 25.00 100.00 72.39 12.66
316
Table no: 8.48:
Descriptive Statistics of Level of Good Will as a factor of Organizational
Performance
5. Placement Facility
The private self financing educational institutions, especially engineering colleges
under study would achieve their final objectives once they successfully accomplish
the placements of their students. More than placements, the factor measured how the
educational institution provided opportunities to its clients in making themselves
eligible/equipped for placement.
E. Placement Facility
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
H 1 Institution provides campus
placement facility. 161 241 950 198
H 2
Good number of companies is
participating in campus
placement.
189 328 786 247
H 3 Reputed companies participate at
campus placement. 164 309 627 450
H 4 Institution help us to prepare for
GD and PI 128 278 859 285
H 5 Package offer at campus
placement is satisfactory. 264 409 727 150
Table no: 8.49:
Placement Facility as a factor of Organizational Performance
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
317
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Placement facility score 1550 25.00 100.00 68.39 13.30
Table no: 8.50:
Descriptive Statistics of Placement Facility as a factor of Organizational
Performance
6. Institutional Strengths
This factor took into account the performance part from the angle of results of the
organization viz. results, admission etc. As an educational institution the major
elements of its output could be the academic results, placements, number of
admissions which are quantifiable and the growth of the individual, the level
knowledge transmitted etc are unquantifiable elements in the real sense of the term.
F. Institutional Strengths
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
I 1 I am happy at the educational
growth that happens within me 118 227 1034 171
I 2 The overall results of the
institution are very good 93 205 1034 218
I 3
The academic learning
atmosphere in the campus
promotes everyone to work
113 318 679 440
318
I 4
There is a result oriented
approach imbibed by the student
community
74 243 923 310
I 5
This organization provides a
training that is helpful for my
career development
117 278 894 261
I 6 The institution focuses on my
personal development as well 176 328 754 282
I 7 There is 100% admission in our
college every year 108 272 891 279
I 8
The institution shows a growth
trend in terms of quality,
academic programmes and
excellence
95 257 962 236
Table no: 8.51:
Institutional Strengths as a factor of Organizational Performance
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Institutional Strengths 1550 25.00 100.00 71.55 12.25
Table no: 8.52: Descriptive Statistics of Institutional Strength
as a factor of Organizational Performance
319
Overall organizational performance score
All scores are considered together and presented in the following table.
Factors of organization
performance Mean score
Infrastructure 70.48
Library 70.3
Canteen 64.16
Level of Goodwill 72.39
Placement 68.39
Institutional Strength 71.55
Table no: 8.53:
Mean Scores of factors of Organizational performance at a glance
The scores of various factors of Organizational performance are presented in a Bar
diagram.
Diagram no: 8 .2
Mean Scores of factors of Organizational Performance at a glance
70.48 70.3
64.16
72.39
68.39
71.55
60
62
64
66
68
70
72
74
Infrastructure Library Canteen Satisfaction Placement Overall
performance
Mea
qn
sco
re i
n p
er c
en
t
Diagram of scores of factors of organisational performance
320
The means score of all the factors together are given below. It explains that the mean
score of organizational performance is 69.87 for a sample of 1550.
Mean Scores of factors of Organizational performance for all respondents
Table no: 8.54:
Mean Scores of factors of Organizational performance for all respondents at a
glance
Analysis of Social Acceptability
Social Acceptability could be defined as a psychological paradigm, which means, a
condition that results after a judgmental process by which individuals compare the
perceived reality with its known alternatives and decide whether it is superior or
similar to the most favourable alternative condition. It is the act of taking or
receiving something offered or assenting or believing and trusting something.
In the present study the following factors are considered to measure the social
acceptability:
1. Awareness
2. Trust and Confidence
3. Value for Money
4. Quality of Service
5. My Willingness to Cooperate
1. Awareness
N Minimum Maximum Mean Std. Deviation
Organizational
Performance 1550 39.19 100.00 69.87 8.85
321
The first factor AWARENESS takes into account the knowledge of the respondents
on the reality of private self financing education institutions. Together with the
knowledge of the respondent it measures the attitude of the respondent towards the
essentiality of the phenomenon and the reputation as educational institutions.
A. Awareness
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
A1
I am aware of the presence of
private self financing education
institutions in our city
12 67 566 155
A2
I know many students who have
passed out of private self financing
education institutions
50 162 444 144
A3
I find the services of private self
financing education institutions are
essential for imparting higher
education to the young
158 245 301 96
A4
Private self financing education
institutions offer highly reputable
academic programmes to its
students
169 279 267 85
Table no: 8.55:
Awareness as a factor of Social Acceptability
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
322
Students =Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Awareness of the
Public 800 25.00 100.00 66.79 13.76
Table no: 8. 56:
Descriptive Statistics of Awareness as a factor of Social Acceptability
To understand the level of Awareness of the respondents, they are classified into
three groups’ If Level of Awareness score is less than 53.24 then ‘Low level of
Awareness and if the Awareness score is above 80.55 then High level of Awareness
towards Self Financing Engineering Colleges.
Respondents are classified according to score Awareness into three levels High, Low
and Medium. Classified table is as given below.
Level of Awareness
Attitude towards Students Frequency Percent
High 155 19.4
Low 117 14.6
Medium 528 66.0
Total 800 100.0
Table no: 8 .57:
Level of Awareness as a factor of Social Acceptability
Above table indicates that out of 800 respondents 155(19.4%) respondents feel that
organization has a very high level of attitude towards students, 117 (14.6%)
323
responds that organization’s Awareness towards the students is very low and 528
(66%) respondents feel that it is medium.
.B. Trust and Confidence
The relationship of trust and confidence is the one that would endure for long. This
gives an assurance to the end users that the organization would stick to what it
promises to offer. A relationship of mutual trust and confidence is measured to
understand how far the end users are ready to put their stakes in these organizations.
B. Trust and Confidence
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
B1
I have trust and confidence in the
objectives and performance of
private self financing education
institutions
168 284 305 43
B2
The services of Private Self
Financing Education Institutions
are found useful and helpful to the
state
214 256 280 50
B3
Private self financing education
institutions undertake various
social oriented projects to
inculcate sense of concern to the
society
199 287 257 57
Table no: 8.58:
Trust and Confidence as a factor of Social Acceptability
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
324
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N
Minimum Maximum Mean Std.
Deviation
Trust and
Confidence
800
25.00 100.00 55.84 17.42
Table no: 8.59:
Descriptive Statistics of Trust and confidence as a factor of Social Acceptability
To understand the level of Trust and Confidence of the respondents, they are
classified into three groups’ If Trust and Confidence score is less than 38.42 then
‘Low level of Trust and Confidence’ and if the Attitude score is above 73.26 then
High level of Trust and Confidence towards Self Financing Engineering Colleges .
Respondents are classified according to score Awareness into three levels High,
Low and Medium. Classified table is as given below.
Level of Trust and Confidence
Trust and Confidence
Frequency Percent
High
Low
Medium
Total
212
138
450
800
26.5
17.3
56.3
100.00
325
Table no: 8. 60:
Level of Trust and confidence as a factor of Social Acceptability
Above table indicates that out of 800 respondents 212 (26.5%) respondents feel that
General Public has a very high level of Trust and Confidence, 138 (17.3 %)
responds that organization’s Trust and Confidence towards the system is very low
and 450 (56.3%) respondents feel that it is medium.
C. Value for Money
C. Value for Money
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
C1 They absorb reasonable fees from
the students to run the institutes. 190 322 252 36
C2
Private Self Financing Education
Institutions are affordable to the
vast majority of the community.
204 378 191 27
C3
Private Self Financing Education
Institutions see that they return
the value for money to the
students
190 358 226 26
C4
Private Self Financing Education
Institutions offer financial
assistance to people who belong
to the lower strata of the society
218 355 201 26
Table no: 8.61:
Value for Money as a factor of Social Acceptability
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
326
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Value for Money 800 25.00 100.00 52.33 14.45
Table no: 8.62: Descriptive Statistics of value for money
as a factor of Social Acceptability
To understand the ‘Value for Money’ of the respondents, they are classified into
three groups’ If Attitude towards students’ score is less than 37.88 then ‘Low level
of attitude towards students’ and if the Attitude score is above 66.78 then High level
of Value for Money.
Respondents are classified according to score of Value for Money into three levels
High, Low and Medium. Classified table is as given below.
Value for Money Frequency Percent
Low 153 19.1
Medium 494 61.8
High 153 19.1
Total 800 100.0
327
Table no: 8.63: Level of value for money as
a factor of Social Acceptability
Above table indicates that out of 800 respondents 153(19.1%) respondents feel that
organization has a very high level of Value for money, 153 (19.1%) responds that
organization’s Value for money is very low and 494 (61.8%) respondents stand in
the medium.
D. Quality of Service
D. Quality of Service
Sr. No Question Strongly
Disagree Disagree Agree
Strongly
Agree
D1
I understand that the Private Self
Financing Education Institutions
take greater efforts to keep quality
of service
172 260 318 50
D2
I understand that Private self
financing educational institutes
are competing on quality.
143 325 277 55
D3
I find Private that Self Financing
Education Institutions provide
better infrastructure
132 274 330 64
D4
I find Private that Self Financing
Education Institutions employ up
to date technology in education
142 318 286 54
Table no: 8.64:
Quality of Service as a factor of Social Acceptability
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
328
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean Std.
Deviation
Quality of service
score 800 25.00 100.00 58.34 17.25
Table no: 8.65:
Descriptive Statistics of quality of service as a factor of Social Acceptability
E. My Willingness to Cooperate
‘Willingness to Cooperate’ was measured to understand how far respondents were
willing to cooperated with private self financing institutions in real terms, by joining
in these institutions or by recommending others to join.
E. My Willingness to Cooperate
Sr.
No Question
Strongly
Disagree Disagree Agree
Strongly
Agree
E1
I have recommended many students
to Private Self Financing education
Institutions
141 350 279 30
E2
Many students have passed out of
Private Self Financing education
Institutions, whom I have
recommended
87 401 266 46
329
E3
I am willing to recommend students
to Private Self Financing education
Institutions
133 291 332 44
E4
I am willing to take admission for
my ward/for myself in Private Self
Financing education Institutions
141 294 323 42
Table no: 8.66:
Willingness to cooperate as a factor of Social Acceptability
Response given to above mentioned question is rated as follows.
Strongly disagree : 1
Disagree : 2
Agree : 3
Strongly agree : 4
Using rating of these questions, score of satisfaction is calculated for each
respondent using formula given below.
Score of n of Attitude towards
Students Sum of scores of all questions * 100
Maximum score of all questions
Result of descriptive statistics is as follows:
Descriptive Statistics
N Minimum Maximum Mean
Std.
Deviation
Willingness to
Cooperate 800 25.00 100.00 57.98
15.12
Table no: 8.67: Descriptive Statistics of Willingness to cooperate as a factor of
Social Acceptability
To understand the ‘Value for Money’ of the respondents, they are classified into
three groups. If ‘Willingness to Cooperate’ score is less than 42.86 then ‘Low level
of ‘Willingness to Cooperate’ and if the Attitude score is above 73.1 then High level
of Willingness to Cooperate.
330
Respondents are classified according to score of Willingness to Co operate into three
levels High, Low and Medium. Classified table is as given below.
Willingness to Cooperate Frequency Percent
High
Low
Medium
Total
182
100
518
800
26.5
17.3
56.3
100.00
Table no: 8.68:
Level of Willingness to cooperate as a factor of Social Acceptability
Above table indicates that out of 800 respondents 182(26.5%) respondents show a
high level of Willingness to Cooperate, 100 (17.3%) shows a very low level of
Willingness to Cooperate and 518(56.3%) shows a medium level of Willingness to
Cooperate.
All scores are considered together and presented in the following table.
Overall Social Acceptability score
Factors of social acceptability Mean score
Awareness 66.78
Trust and confidence 55.84
Value for money 52.32
quality of service 58.34
Willingness to cooperate 57.98
Table no: 8.69:
331
Over all Score of Social Acceptability at glance
The scores of various factors of Organizational performance are presented in a Bar
diagram.
Diagram no: 8.3 Overall Score of Social Acceptability at glance
Social Acceptability for all 800 respondents
N Minimum Maximum Mean Std.
Deviation
Social Acceptability
Score 800 31.58 100.00 58.38 11.78
Table no: 8.70:
Over all Score of Social Acceptability for all respondents at glance
66.78
55.84 52.32
58.34 57.98
0
10
20
30
40
50
60
70
80
Awareness Trust and
confidence
Value for
money
quality of
service
Willingness to
cooperate
Me
an s
core
in p
er
c e
nt
Diagram of scores of factors of social acceptability
332
CHAPTER 9
DATA ANALYSIS (B): HYPOTHESIS TESTING
In this chapter for validation of hypothesis various statistical test are applied such as
Chi-square test, ANOVA and F-test, Paired sample t-test and correlation.
As explained in the previous chapter organization culture score is calculated from
information collected from faculties of various colleges. Mean score of
‘organizational culture’ calculated for 700 respondents is 74.08 and standard
deviation is 10.44. These scores cannot be same for all respondents. Therefore these
700 respondents are classified into three categories. Respondents of score below
63.64 (mean -standard deviation) are classified as ‘Low organization culture’,
respondents of score from 63.64 to 84.52 as considered as ‘Medium organization
culture’. Respondents of score, more than 84.52 are classified as ‘High organization
culture’. Classified information of respondents according to level of organization
culture is given in the following table.
Level of
organization culture
Number of respondents Percentage of
respondents
Low 116 16.6
Medium 445 63.6
High 139 19.9
Total 700 100.0
Table No. 9:1 Level of Organizational Culture
Above table indicate that minimum 116 respondents are from ‘Low organization
culture’, 445 respondents are from ‘Medium organization culture’ and remaining
333
139 respondents from ‘High organization culture’. Above information is presented
using pie diagram as shown below.
Diagram No. 9:1 Level of Organizational Culture
H01: There is no significant difference in mean scores of Organization Culture
of Private Self Financing Engineering Collegesin Kerala and Karnataka
H11: There is significant difference in mean scores of Organization Culture of
Private Self Financing Engineering Collegesin Kerala and Karnataka
To test above hypothesis bivariate frequency table is obtained and
presented as follows.
State Level of organization culture Total
High Low Medium
Karnataka 139 27 234 400
Kerala 0 89 211 300
Total 139 116 445 700
Table No. 9:2 Bivariate frequency on Level of Organizational Culture
17%
63%
20%
Diagram of respondents according to level of
organisation culture
Low
Medium
High
334
Above table indicate that out of 700 respondents, 116 are from Low level, 445 are
from Medium level and remaining 139 are from High level of organization culture.
Above information is presented using multiple bar diagram as shown below.
Diagram No. 9:2 Bivariate frequency of Level of Organizational Culture
To test above hypothesis chi-square test is applied. Results of the test are as follows.
Ch-square calculated value = 162.34
Chi-square table value (5% l.o.s.) = 5.99
Degree of Freedom = 2
Result of test = Rejected
Above result indicate that Chi-square calculated value (162.34) is greater than table
value (5.99) therefore test is rejected and subsequently NULL HYPOTHESIS is
REJECTED. Conclusion of test is there is association between level of organization
culture and state of respondents.
To understand difference in mean score of organization culture of four different
cities ANOVA is obtained and F-test is applied. Null hypothesis for the test is as
follows
27
234
139
89
211
0 0
50
100
150
200
250
Low Medium High
Diagram of respondents according to level of
organisation culture according to state
Karnataka
Kerala
335
Null Hypothesis: There is no significant difference in mean scores of organization
culture of four cities.
Alternate Hypothesis: There is significant difference in mean scores of
organization culture of four cities.
ANOVA for Organization Culture between CITIES
Sum of
Squares
df Mean Square F cal F table Result
Between
Groups 33963.233 3 11321.078 186.538 2.60
Rejected
Within Groups 42240.633 69
6 60.691
Total 76203.867 69
9
Table No. 9:3 ANOVA for Organizational Culture between cities
F calculated value = 186.53
F tabulated value = 2.60
Result of test = Rejected
Conclusion: Since the calculated value (186.538) is greater than the Table Value
(2.60) the NULL HYPOTHESIS is REJECTED. Therefore it is concluded that
there is significant difference between mean scores of Organization Culture
between four cities.
To understand significant difference between organizational culture
of each pair of city pair T-test is applied and results of test are as follows. To apply
t-test, mean and standard deviations of organization culture score are calculated as
shown in the following table.
336
Descriptive Statistics
City N Mean Std.
Deviation
Bangalore 250 77.79 10.33
Mysore 150 82.82 7.61
Kochi 150 63.82 5.04
Trivandrum 150 69.40 4.65
Table No. 9:4 Descriptive statistics of Organizational Culture between cities
Above information is shown using bar diagram as follows.
Diagram No. 9: 3 Score of Organizational Culture acco. toCity
77.79 82.82
63.83 69.40
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
Banglore Mysore Kochi TVM
Sco
re in
pe
r ce
nt
Diagram of score of organisation culture according to city
337
T-test for
Organization
culture
No. Mean SD S E
M
Diffe.
Of
Mean
Calcula
ted T-
value
Table
T-
value
Result
Pair-
1
Bangalore 250 77.79 10.33 0.90 5.03 5.56 1.96
Significant
Mysore 150 82.82 7.62
Pair-
2
Bangalore 250 77.79 10.33 0.77 13.96 18.04 1.96
Significant
Kochi 150 63.83 5.04
Pair-
3
Bangalore 250 77.79 10.33 0.76 8.39 11.08 1.96
Significant
TVM 150 69.40 4.65
Pair-
4
Mysore 150 82.82 7.62 0.75 18.99 25.37 1.96
Significant
Kochi 150 63.83 5.04
Pair-
5
Mysore 150 82.82 7.62 0.73 13.42 18.35 1.96
Significant
TVM 150 69.40 4.65
Pair-
6
Kochi 150 63.83 5.04 0.56 5.57 9.91 1.96
Significant
TVM 150 69.40 4.65
Table No. 9: 5 T-test of Organizational Culture between Cities
Results of above table indicate that there is significant difference between each pair
of city. To understand is there significant difference between two states following
hypothesis is also tested.
Null Hypothesis: There is no significant difference in mean score of Organizational
Culture of Karnataka and Kerala.
Alternate Hypothesis: There is significant difference in mean score of
Organizational Culture between two states
Descriptive Statistics for organization culture scores of states
State N Mean Std.
Deviation
Karnataka 400 79.68 9.70
Kerala 300 66.61 5.59
Table No. 9:6 Descriptive statistics of Organizational Culture between States
338
Above table indicate that the mean scores of organizational culture of Karnataka is
79.68 and that of Kerala is 66.71. To test the significance in the difference of means
T-test is applied.
T-test for organization culture of States
State No. Mean SD S E
M
Difference
of Mean
Cal. T-
value
Table
T-value
Result
of
Test
Karnataka 400 79.68 9.70
0.57 13.06 22.38 1.96 Signifi
cant Kerala 300 66.61 5.59
Table No. 9:7 T-Test of Organizational Culture between States
Above results (Calculated value is greater than the table T-value)
indicate that there is significant difference between mean scores of organization
culture of two states. Finding of the test is Organization culture score is better
for Karnataka state as a comparison to Kerala.
--------------------------------------------------------------------------------------------------
H02: There is no significant difference in Mean score Organization performance
of Private Self Financing Engineering Collegesin Kerala and Karnataka
H12: There is significant difference in mean scores Organization performance of
Private Self Financing Engineering Collegesin Kerala and Karnataka
As explained in the previous chapter organizational performance score is calculated
form information collected from students of various colleges. Mean score of
‘organization performance’ calculated for 1550 respondents (students) is 69.86 and
standard deviation is 8.85. These scores cannot be same for all respondents.
339
Therefore these 1550 respondents are classified into three categories. Respondents
of score below 61.01 (mean -standard deviation) are classified as ‘Low
organizational performance’, respondents of score from 61.01 to 78.71 as considered
as ‘Medium organizational performance’. Respondents of score more than 78.71 are
classified as ‘High organizational performance’. Classified information of
respondents according to level of organization performance is given in the following
table.
Level of
Organizational
performance
Number of
respondents
Percentage of
respondents
Low 220 14.2
Medium 1134 73.2
High 196 12.6
Total 1550 100.0
Table No. 9:8 Level of Organizational Performance between states
Above table indicate that out of total 1550 respondents 220 belongs to ‘Low
organizational performance’, maximum1134 are from ‘Medium organizational
performance’ and remaining 196 respondents are from ‘High organizational
performance level’. Above diagram is presented using pie diagram as shown below.
340
Diagram No. 9:4 Level of Organizational Performance according to states
H02: There is no significant difference in mean scores of Organization Performance
of Private Self Financing Engineering Colleges in Kerala and Karnataka
H12: There is significant difference in mean scores of Organization Performance of
Private Self Financing Engineering Colleges in Kerala and Karnataka
To test above hypothesisBivariate frequency table of level of organization
performance and state is obtained which is as shown below.
State Organization performance level Total
High Low Medium
Karnataka 192 126 482 800
Kerala 4 94 652 750
Total 196 220 1134 1550
Table No. 9:9 Bivariate Table of Level of Organizational Performance
Above table indicate that out of 1550 respondents 196 are from High level of
Organizational performance, 220 are from Low level of organizational performance
and 1134 are from medium level of organizational performance.
Above information is presented using multiple bar diagram as shown below.
14%
73%
13%
Diagram of respondents according to the
organisation performance level
Low
Medium
High
341
Diagram No. 9:5 Respondents according to Level of Organizational
Performance and states
Ch-square calculated value = 209.07
Chi-square table value (5% l.o.s.) = 5.99
Degree of Freedom = 2
Result of test = Rejected
Above results indicate that chi-square calculated value (109.07) is less than
table value (5.99) therefore test is REJECTED and NULL HYPOTHESIS IS
REJECTED. Conclusion of test is there is association between level of organization
performance and state of respondents.
To understand difference in mean scores of organisation culture of four different
cities ANOVA is obtained and F-test is applied. Null hypothesis for the test is as
follows.
Null Hypothesis: There is no significant difference in mean scores of organizational
performance of four cities.
Alternate Hypothesis: There is significant difference in mean scores of
organization performance of four cities.
126
482
192
94
652
4 0
100
200
300
400
500
600
700
Low Medium High
Nu
mb
er
of
resp
on
de
nts
Diagram of responedents according to level of
performance and state
Karnataka
Kerala
342
ANOVA for Organizational Performance between CITIES
Sum of
Squares
df Mean
Square
F cal. F table Result
Betn.
Groups
8455.16 3 2818.38
Within
Groups
112884.11 1546 73.017 38.59 2.60
Rejected
Total 121339.28 1549
Table No. 9:10 ANOVA of Organizational Performance according to Cities
F calculated value = 38.59
F tabulated value = 2.60
Result of test = Rejected
Conclusion: Since the calculated value (138.599) is greater than the Table Value
(2.60) the NULL HYPOTHESIS is REJECTED. Therefore there is significant
difference between mean scores of Organization Performance between four cities.
To understand significant difference between organizational performances of each
pair of city pair T-test is applied and results of test are as follows. To apply T-test
mean, standard deviation of organisational performance are calculated in the
following table.
Descriptive Statistics
343
City N Mean score of
organization
performance
Std.
Deviation
Bangalore 600 72.25 11.24
Mysore 200 71.69 9.32
Kochi 350 67.79 4.67
Trivandrum 400 67.18 5.52
Table No. 9:11 Descriptive Statistics of Organizational Performance according
to Cities
Above information is presented using bar diagram as shown below.
Diagram No. 9:6 Score of Organizational Performance according to Cities
T-test for organisation Performance
72.25 71.70
67.79 67.19
64.00
65.00
66.00
67.00
68.00
69.00
70.00
71.00
72.00
73.00
Banglore Mysore Kochi TVM
Sco
re in
pe
r ce
nt
Diagram of score of organisation performance according to
city
344
City Num
ber Mean SD
S E
M
Diffe.
of
Mean
Cal.d
T-
value
Table
T-
value
Result
Pair-
1
Bangalor
e 600 72.25 11.2482
0.81 0.55 0.68 1.96 Non
Significant Mysore 200 71.6993 9.32499
Pair-
2
Bangalor
e 600 72.25 11.2482
0.52 4.4586 8.52 1.96 Significant
Kochi 350 67.7914 4.67069
Pair-
3
Bangalor
e 600 72.25 11.2482
0.54 5.061 9.44 1.96 Significant
TVM 400 67.189 5.52491
Pair-
4
Mysore 200 71.6993 9.32499 0.71 3.9079 5.53 1.96 Significant
Kochi 350 67.7914 4.67069
Pair-
5
Mysore 200 71.6993 9.32499 0.72 4.5103 6.29 1.96 Significant
TVM 400 67.189 5.52491
Pair-
6
Kochi 350 67.7914 4.67069 0.37 0.6024 1.62 1.96
Non
Significant TVM 400 67.189 5.52491
Table No. 9: 12 T-test of Organizational Performance between Cities
Above table indicate that there is no significant difference in organization
performance score of Bangalore and Mysore city.
Table also indicates that there is no significant difference in organization
performance score of Kochi and TVM city.
Finding of test are as follows
1. There is no significant difference in mean scores of organization performance
of cities of same state.
2. There is significant difference in mean scores of organization performance of
cities of different states.
To understand whether there is significant difference between two states the
following hypothesis also is tested.
Null Hypothesis: There is no significant difference in mean scores of Organization
Performance of two states: Kerala and Karnataka
345
Alternate Hypothesis: There is significant difference in mean scores of
Organization Performance of two states: Kerala and Karnataka.
Descriptive Statistics for organisation performance scores of states
State N Mean Std.
Deviation
Karnataka 800 72.11 10.79
Kerala 750 67.47 5.14
Table No. 9:13 Descriptive Statistics of Organizational Performance between
States
Above table indicate that Karnataka has a mean score of 72. 11 and Kerala has a
mean score of 67.47 on organizational performance.
To test significant difference between mean scores of organization performance of
two states t-test is applied.
T-test for organisation performance of States
Numbe
r Mean SD
S E
M
Differe
nce of
Mean
Calculate
d T-value
Table
T-
value
Result
of
Test
Karnat
aka 800 72.11 10.79
0.43 4.64 10.90 1.96 Signifi
cant Kerala 750 67.47 5.14
Table No. 9:14 T-test of Organizational Performance between States
Above results (Calculated value is greater than the table T-value) indicate that there
is significant difference between mean scores of organizational performance of two
states. Finding of the test is Organizational performance score is better for
Karnataka state in comparison to Kerala.
---------------------------------------------------------------------------------------------------
346
H03: There is no significant difference in Social Acceptability of Private Self
Financing Engineering Collegesin Kerala and Karnataka
H13: There is significant difference in Social Acceptability of Private Self
Financing Engineering Collegesin Kerala and Karnataka
As explained in the previous chapter Social Acceptability score is calculated form
information collected from general public of various cities. Mean score of ‘social
acceptability’ calculated for 800 respondents (General Public) is58. 38and standard
deviation is 11. 78. These scores cannot be same for all respondents. Therefore these
800 respondents are classified into three categories. Respondents of score below
46.6 (mean -standard deviation) are classified as ‘Low organizational social
acceptability’, respondents of score from 46.6 to 70.16 as considered as ‘Medium
organizational performance’. Respondents of score, more than 70.16 are classified
as ‘High social acceptability’. Classified information of respondents according to
level of organization performance is given in the following table.
Level of social acceptability Number of
respondents
Percentage of
respondents
Low 126 15.8
Medium 523 65.4
High 151 18.9
Total 800 100.0
Table No. 9:15 Level of Social Acceptability
Above table indicate that minimum 126 respondents are from low social
acceptability, 523 are from medium social acceptability and 151 are from high social
acceptability. Above information is presented using a pie diagram as shown below.
347
Diagram No. 9: 7 Level of Social Acceptability
H03: There is no significant difference in mean scores of Social Acceptability of
Private Self Financing Engineering Colleges in Kerala and Karnataka
H13: There is significant difference in mean scores of Social Acceptability of Private
Self Financing Engineering Colleges in Kerala and Karnataka
To test the above hypothesis bivariate frequency table is obtained and presented as
follows:
State Level of social acceptability Total
High Low Medium
Karnataka 151 18 231 400
Kerala 0 108 292 400
Total 151 126 523 800
16%
65%
19%
Diagram of respondents according to level of
social acceptability
Low
Medium
High
348
Table No. 9 :16 Bivariate Frequency table on Level of Social Acceptability
Above table indicate that out of 800 respondents minimum 126 respondents are from
low social acceptability, 523 are from medium social acceptability and 151 are from
high social acceptability. Above information is presented using a bar diagram as
shown below.
Diagram No. 9:8 Respondents according to the Level of Social Acceptability
To test the above hypothesis Chi-square test is applied. Results of the tests are as
follows.
Ch-square calculated value = 222.40
Chi-square table value (5% l.o.s.) = 5.99
Degree of Freedom = 2
Result of test = Rejected
Above result indicate that Chi-square calculated value (222.40) is greater than table
value (5.99) and therefore the test is rejected. Conclusion of the test is that: There is
18
231
151
108
292
0 0
50
100
150
200
250
300
350
Low Medium High
Diagram of respondents accotding to level of social acceptability
and state
Karnataka
Kerala
349
association between level of social acceptability and city of respondents. To
understand difference in mean score of social acceptability of four different cities,
ANOVA is obtained and F- test is applied. Null Hypothesis for the test is as follows.
Null Hypothesis: There is no significant difference in social acceptability of four
different cities
Alternate Hypothesis: There is significant difference in social acceptability of four
different cities
ANOVA for Social Acceptability between Cities
Sum of
Squares
df Mean
Square
F-cal F table Result
Between
Groups
53763.05 3 17921.01 249.27 2.60 Rejected
Within
Groups
57226.20 796 71.892
Total 110989.26 799
Table No. 9:17 ANOVA for Level of Social Acceptability cities
F calculated value = 249.276
F tabulated value = 2.60
Result of test = Rejected
350
Conclusion: Since the calculated value (249.276) is greater than the Table Value
(2.60) the NULL HYPOTHESIS is REJECTED. Therefore there is significant
difference between mean scores of Social Acceptability between four cities.
To understand whether the difference of social acceptability is significant between
each pair of the cities pair T=test is applied and the results of the tests are as follows.
To apply T-test, mean, standard deviation is calculated as shown the following table.
Descriptive Statistics
City N Mean Std.
Deviation
Bangalore 200 66.00 8.93
Mysore 200 67.13 12.09
Kochi 200 50.07 4.67
TVM 200 50.31 6.28
Table No. 9:18 Descriptive Statistics for Level of Social Acceptability cities
Above Information is shown using a Bar Diagram as follows.
351
Diagram No. 9:9 Score of Social Acceptability according to cities
T-test for Social
acceptability
City Num
ber Mean SD
S E
M
Diffe
rence
of
Mean
Calcul
ated
T-
value
Table
T-
value
Result
Pair-
1
Bangalore 200 66 8.93 1.07 -1.13 -1.06 1.96
Non
Significant Mysore 200 67.13 12.09
Pair-
2
Bangalore 200 66 8.93 0.71 15.93 22.30 1.96 Significant
Kochi 200 50.07 4.67
Pair-
3
Bangalore 200 66 8.93 0.77 15.69 20.27 1.96 Significant
TVM 200 50.31 6.28
Pair-
4
Mysore 200 67.13 12.09 0.92 17.06 18.57 1.96 Significant
Kochi 200 50.07 4.67
Pair-
5
Mysore 200 67.13 12.09 0.97 16.82 17.42 1.96 Significant
TVM 200 50.31 6.28
Pair-
6 Kochi 200 50.07 4.67 0.55 -0.24 -0.43 1.96
Non
Significant
Table No. 9:19 T-test of Social Acceptability between cities
Above table indicate that there is no significant difference in social acceptability
score of Bangalore and Mysore city.
Table also indicates that there is no significant difference in Social Acceptability
score of Kochi and TVM city.
66 67.13
50.07 50.31
0
10
20
30
40
50
60
70
80
Bangalore Mysore Kochi TVM
Sco
re in
pe
r ce
nt
Diagram of scores of social acceptabilty according city
352
Finding of test are as follows
1. There is no significant difference in mean scores of organization performance
of cities of same state.
2. There is significant difference in mean scores of organization performance of
cities of different states.
To understand whether there is significant difference between two states the
following hypothesis also is tested.
Null Hypothesis: There is no significant difference in mean scores of Social
Acceptability of two states: Kerala and Karnataka
Alternate Hypothesis: There is significant difference in mean scores of Social
Acceptability of two states: Kerala and Karnataka.
Descriptive Statistics for score of social acceptability of states
State N Mean Std.
Deviation
Karnataka 400 66.57 10.63
Kerala 400 50.19 5.53
Table No. 9:20 Descriptivestatistics of Social Acceptability between States
The Table above indicates that the mean score on social acceptability of Karnataka
is 66.57 and that of Kerala is 50.19.
To test significant difference between mean scores of social acceptability of two
states t-test is applied.
T-test for Social acceptability of States
353
Number Mean SD SE M Difference
of Mean
Calculat
ed T-
value
Table
T-value
Result of
Test
Karna
taka 400 66.57 10.64
0.60 16.3751 27.28 1.96 Significa
nt Keral
a 400 50.20 5.53
Table No. 9:21 T-test of Social Acceptability between states
Above results (calculated value is greater than the table T vale) indicate that there is
significant difference between mean scores of social acceptability of two states.
Finding of the test is that the social acceptability score is better for Karnataka
state as compared to Kerala.
---------------------------------------------------------------------------------------------------
H04: There is no impact of Organization Culture on Social Acceptability of
Private Self Financing Engineering Collegesin Kerala and Karnataka
H14: There is impact of Organization Culture on Social Acceptability of Private
Self Financing Engineering Collegesin Kerala and Karnataka
To test above hypothesis information related to organization culture score and social
acceptability score of each city are tabulated and presented in the following table.
City Organization
culture score
Social
acceptability
score
Bangalore 77.79 66.01
Kochi 63.82 50.07
Mysore 82.82 67.14
TVM 69.04 50.13
Table No. 9:22 Organization Culture and Social acceptability scores
354
Above table indicate that due to decrease in organization culture score there is also
decrease in social acceptability score. If there is increase in organization culture
score there is also increase in social acceptability score. Above information is
presented using bar diagram as shown below.
Diagram No. 9:10 Organization Culture and Social acceptability scores for all
cities
Therefore it is clear indication of there exist correlation between organizational
culture and social acceptability. It is also concluded that there is positive impact of
organizational culture on social acceptability. To study amount (or degree) of
correlation between organizational culture and social acceptability Karl Pearson’s
co-efficient of correlation is calculated.
Correlations
77.79
63.82
82.82
69.04 66.01
50.07
67.14
50.13
0
10
20
30
40
50
60
70
80
90
Bangalore Kochi Mysore TVM
Sco
res
in p
er c
en
t
Diagram of scoresof OC and SA
Organisation culture
score
355
Organization
al culture
Social
acceptability
Organisation
culture
Pearson
Correlation 1 0.949
Sig. (2-tailed) .051
N 4 4
Social
acceptability
Pearson
Correlation 0.949 1
Sig. (2-tailed) .051
N 4 4
Table No. 9:23 Correlations between Organization Culture and Social
acceptability scores for all cities
Conclusion: There is high level of positive correlation between Organizational
Culture and Social Acceptability. Therefore the NULL HYPOTHESIS (H0) is
REJECTED.
H05: There is no impact of Organizational Performance on Social Acceptability
of Private Self Financing Engineering Colleges in Kerala and Karnataka
H15: There is impact of Organizational Performance on Social Acceptability of
Private Self Financing Engineering Colleges in Kerala and Karnataka
City Organizational
performance
Social
acceptability
score
Bangalore 72.25 66.01
Kochi 67.49 50.07
Mysore 71.69 67.14
TVM 67.18 50.13
Table No. 9:24 Organization performance and Social acceptability scores
Above table indicate that due to decrease in organization performance score there is
also decrease in social acceptability score. If there is increase in organization
356
performance score there is also increase in social acceptability score. Above
information is presented using bar diagram as shown below.
Diagram No. 9:11 Organization performance and Social acceptability scores
for all cities
Therefore it is clear indication of there exist correlation between organizational
performance and social acceptability. It is also concluded that there is positive
impact of organizational performance on social acceptability. To study amount (or
degree) of correlation between organizational culture and social acceptability Karl
Pearson’s co-efficient of correlation is calculated.
Correlations
Organizational
performance
Social
acceptability
72.25 67.49
71.69 67.18 66.01
50.07
67.14
50.13
0
10
20
30
40
50
60
70
80
Bangalore Kochi Mysore TVM
Sco
res
in p
er c
en
t
Diagram of scores of OP and SA Organisation performance
Social acceptability score
357
Organization
performance
Pearson
Correlation 1 0.990
*
Sig. (2-tailed) .010
N 4 4
Social
acceptability
Pearson
Correlation 0.990
* 1
Sig. (2-tailed) .010
N 4 4
*. Correlation is significant at the 0.05 level (2-tailed).
Table No. 9:25 Correlations between Organization Culture and Social
acceptability scores for all cities
Conclusion: There is high level of positive correlation between Organization
Performance and Social Acceptability. Therefore the NULL HYPOTHESIS (H0) is
REJECTED.
-----------------------------------------------------------------------------------------------------.
H06: There is no association between Organization Culture and demographic
factors of Private Self Financing Engineering Colleges in Kerala and
Karnataka
H16: There is association between Organization Culture and demographic
factors of Private Self Financing Engineering Colleges in Kerala and
Karnataka
Level of Organizational Culture: Cities
H06a: There is no difference between the level of organization culture between four
various cities in Karnataka and Kerala
H16a: There is difference between the level of organization culture between four
various cities in Karnataka and Kerala
358
Organizational
culture
city
Total Bangalore Kochi Mysore TVM
High
Low
Medium
65 0 74 0 139
25 73 2 16 116
160 77 74 134 445
Total 250 150 150 150 700
Table No. 9:26 Level of Organization Culture between four cities
The Above table indicates that out of 700 respondents 250 belongs to the city of
Bangalore and 150 represents Kochi, Mysore and Trivandrum. Out them 65 and 74
respondents from Bangalore and Mysore show high level of Organization Culture,
Kochi and Trivandrum has no one in that category. Among the respondents a
number of 25, 73, 2 and 16 representing Bangalore, Kochi, Mysore and Trivandrum
respectively show a low level of Organization culture and 160, 77,74 and 134
representing Bangalore, Kochi, Mysore and Trivandrum respectively show a
medium level of Organization Culture. The same information is presented in the
form of a bar diagram.
359
Diagram No. 9:12 Level of Organization Culture for all cities
Chi-Square Test
Value df Test
Pearson Chi-Square 277.87 6 Rejected
Chi-Square Table
value
12.60
Table No. 9:27 Chi-square Test for Level of Organization Culture for Cities
Chi square calculated value = 277. 87
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (277.87) is greater than chi
square tabulated value (12.60) at 5% level of significance, therefore null hypothesis
is rejected. Therefore Conclusion is,
25
73
2
16
160
77 74
134
65
0
74
0 0
20
40
60
80
100
120
140
160
180
Bangalore Kochi Mysore TVM
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according to level of organisation
culture and city Low
Medium
High
360
There is difference between Organization Culture of Private Self Financing
Engineering Collegesin Kerala and Karnataka
Level of Organizational Culture: State
H06b: There is no difference between the level of organization culture between the
two State Karnataka and Kerala
H16b: There is difference between the level of organization culture between the two
states Karnataka and Kerala
Organizational
culture
state
Total Karnataka Kerala
level High 139 0 139
Low 27 89 116
Mediu 234 211 445
Total 400 300 700
Table No. 9: 28 Level of Organization Culture for all States
The Above table indicates that out of 700 respondents 400 belongs to the State of
Karnataka and 300 represents the state of Kerala. Out them 139 Karnataka show
high level of Organization Culture and there is no respondent from Kerala who falls
in that category. Among the respondents a number of 27 and 89 show a low level of
Organization culture in Karnataka and Kerala respectively. 234 respondents from
Karnataka and 211from Kerala, show a medium level of Organization Culture. The
same information is presented in the form of a bar diagram.
361
Diagram No. 9:13 Level of Organization Culture for States
value df Test
Karl Pearson
Chi-square Table value
162.35
12.60
2 Rejected
Table No. 9:29 Chi square Test for Organization Culture for all States
Chi square calculated value = 162.35
Degrees of freedom = 2
Chi square tabulated value = 12.60
Result of test = Rejected
139
0
27
89
234
211
0
50
100
150
200
250
Karnataka Kerala
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according to level of organisation
culture and State
High
Low
Medium
362
Conclusion: Since the chi square calculated value (162.35) is greater than chi
square tabulated value (12.60) at 5% level of significance, therefore null hypothesis
is rejected. Therefore Conclusion is,
There is difference in the level of Organization Culture between the two of
Karnataka and Kerala.
Level of Organizational Culture: Age
H06c: There is no difference between the level of organization culture between the
different age groups in Karnataka and Kerala
H16c: There is difference between the level of organization culture between the
different age groups in Karnataka and Kerala
Age
Total 31 to 40 41 to 50 Above 50 Below 30
Organizational
culture level
High 41 25 7 66 139
Low 30 45 23 18 116
Mediu
m
183 99 63 100 445
Total 254 169 93 184 700
Table No. 9:30 Level of Organizational Culture for all Age Groups
The Above table indicates that out of 700 respondents 254 belongs to the age group
of 31-40. 169 to the age group of 41-50, 93 belongs to the age group above 50 and
184 belongs to the age group below 30. Among the respondents a number of 41 of
31-40, 25 of 41-50, 7 of above 50 and 66 of below 30 opts a high level of
organizational culture and 30 of 31-40, 45 of 41-50, 23 of above 50 and 18 of below
30 opts a low level of organization culture. 183 of 31-40, 99 of 41-50, 63 of above
363
50 and 100 of below 50 opt for a medium level of organizational culture. The same
information is presented in the form of a bar diagram.
Diagram No. 9:14 Level of Organization Culture for all age groups
Chi-Square Test
Value df Test
Pearson Chi-
Square
63.71 6 Rejected
Chi-Square Table
value
12.60
Table No. 9:31 Chi-square Test of Organization Culture for all age groups
Chi- square test
Chi square calculated value = 63.71
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Rejected
41
25
7
66
30 45
23 18
183
99
63
100
0
20
40
60
80
100
120
140
160
180
200
31 to 40 41 to 50 Above 50 Below 30
Nu
mb
er o
f re
spo
nd
ents
Age group (in years)
Diagram of respondents according to level of organisation
culture and age group
High
Low
Medium
364
Conclusion: Since the chi square calculated value (63.71) is greater than chi square
tabulated value (12.60) at 5% level of significance, therefore null hypothesis is
rejected. Therefore Conclusion is,
There is difference in the level of Organization Culture between different age
groups in the two states of Karnataka and Kerala.
Level of Organizational culture: Gender
H06d: There is no difference between the level of organization culture between the
different genders in Karnataka and Kerala
H16d: There is difference between the level of organization culture between the
different genders in Karnataka and Kerala
Gender
Total Female Male
Organizational
Culture Level
High 72 67 139
Low 61 55 116
Medium 213 232 445
Total 346 354 700
Table No. 9:32 Level of Organization Culture for Gender
The Above table indicates that out of 700 respondents 346 are females and 354 are
males. Among the respondents 72 female respondents and 67 male respondents are
very high on Organizational culture, 61 females and 55 males are low on
organizational culture and a group of 213 females and 232 males are medium on
Level of organizational culture. The same information is presented in the form of a
bar diagram.
365
Diagram No. 9:15 Level of Organization Culture for gender
Chi- square test
Value df Test
Pearson Chi-Square 1.21 2 Accepted
Chi-Square Table
value
5.99
Table No. 9:33 Chi-square Table of Organization Culture for Gender
Chi square calculated value = 1.210
Degrees of freedom = 2
Chi square tabulated value = 5.99
Result of test = Accepted
Conclusion: Since the chi square calculated value (1.210) is lesser than chi square
tabulated value (5.99) at 5% level of significance, therefore null hypothesisis
accepted. Therefore Conclusion is,
72 67 61 55
213
232
0
50
100
150
200
250
Female Male
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according to level of organisation
culture and gender
High
Low
Medium
366
There is no difference in the level of Organization Culture between different
genders in the two states of Karnataka and Kerala.
Level of Organizational Culture: Qualification
H06e: There is no difference between the level of organization culture between people of
different qualifications in Karnataka and Kerala
H16e: There is difference between the level of organization culture between people of
different in Karnataka and Kerala
Qualification
Total Doctorate Post Graduation
Organizational culture
level
High 20 119 139
Low 6 110 116
Medium 17 428 445
Total 43 657 700
Table No. 9:34 Level of Organization Culture for Qualification
The Above table indicates that out of 700 respondents 43 hold doctorate and 657 are
post graduates. Among the respondents 20 respondents doctorate holders and 119
post graduates are very high on Organizational culture, 6 doctorate holders and 110
post graduate are low on organizational culture and a group of 17 doctorate holders
and 428 post graduates are medium on Level of organizational culture. The same
information is presented in the form of a bar diagram.
367
Diagram No. 9:16 Level of Organization Culture for qualification
Chi-Square Test
Value df Test
Pearson Chi-Square 20.74 2 Rejected
Chi-Square Table
value
5.99
Table No. 9:35 Chi-square Table of Organization Culture for qualification
Chi square calculated value = 1.21
Degrees of freedom = 2
Chi square tabulated value = 5.99
Result of test = Accepted
Conclusion: Since the chi square calculated value (20.745) is greater than chi
square tabulated value (5.99) at 5% level of significance, therefore null hypothesis is
rejected. Therefore Conclusion is,
20
119
6
110
17
428
0
50
100
150
200
250
300
350
400
450
Doctorate Post Graduation
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according to level of organisation
culture and qualification
High
Low
Medium
368
There is difference in the level of Organization Culture between different
qualifications in the two states of Karnataka and Kerala.
Level Organizational Culture: Designation
H06f: There is no difference between the level of organization culture between
people of different designations in Karnataka and Kerala
H16f: There is difference between the level of organization culture between people of
different in Karnataka and Kerala
Designation
Tota
l
Associate
Professor Asst Professor Other Professor
Organizational
culture level
Hig
h
19 56 20 44 139
Low 3 46 58 9 116
Med
i
36 183 191 35 445
Total 58 285 269 88 700
Table No. 9:36 Level of Organizational Culture for Designation
The Above table indicates that out of 700 respondents 58 are associate professors,
285 are Asst Professors, 269 belong to others and 88 are professors. Among the
respondents 19 associate professors, 56 asst professors, 20 others and 44 professors
are high on the level of organization culture and 3 associate professors, 46 asst
professors, 58 others and 9 professors are low on organizational culture and a group
of 36 associate professors, 183 Asst. Professors 191 others and 66 professors are
medium on Level of organizational culture. . The same information is presented in
the form of a bar diagram.
369
Diagram No. 9:17 Level of Organization Culture for Designation
Chi-Square Test
Value df Test
Pearson Chi-Square 87.01 6 Rejected
Chi-Square Table
value
12.60
Table No. 9:37 Chi-square Table of Organizational Culture for Designation
Chi square calculated value = 87.01
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (20.745) is greater than chi
square tabulated value (5.99) at 5% level of significance, therefore null hypothesis is
rejected. Therefore Conclusion is,
There is difference in the level of Organization Culture between different
designations in the two states of Karnataka and Kerala.
-------------------------------------------------------------------------------------------------
19
56
20
44
3
46 58
9
36
183 191
35
0
50
100
150
200
250
Associate Professor Asst Professor Other Professor
Nu
mb
er o
f re
spo
nd
net
s
Diagram of respondents according to level of organisation
culture and designation High
Low
Medium
370
Level of Organizational Performance
H07: There is no association between Organizational Performance and demographic
factors of Private Self Financing Engineering Colleges in Kerala and Karnataka
H17: There is association between Organizational Performance and demographic
factors of Private Self Financing Engineering Colleges in Kerala and Karnataka
Level of Organizational Performance: City of College
H07a: There is no difference in the level of organization performance between of
Private Self Financing Engineering Colleges in Kerala and Karnataka
H17a: There is difference in the level of organization performance between four
various cities in Karnataka and Kerala
City of College
Total Bangalore Kochi Mysore TVM
Students
performance level
High 161 0 31 4 196
Low 97 37 29 57 220
Medium 342 313 140 339 1134
Total 600 350 200 400 1550
Table No. 9:38 Level of Organizational Performance for Cities
Above table indicates that out of total 1550 respondents, 600 belong to Bangalore,
350 belong to Kochi, 200 belong to Mysore and remaining 400 are from
Trivandrum. Out of 600 from Bangalore, 161 are high on level of performance, 97
are low on level of organizational performance whereas 342 are moderate on level of
organizational performance. Out of 350 from Mysore, 31 on high level of
performance, 29 are low on level of organizational performance whereas 313 are
moderate on level of organizational performance. Out of 200 from Mysore, 161 are
high on level of performance, 97 are low on level of organizational performance
371
satisfied whereas 140 are moderate on level of organizational performance. Out of
400 from Trivandrum, 4 are high on level of performance, 57 are low on level of
organizational performance satisfied whereas 339 are moderate on level of
organizational performance.
Above information is presented using bar diagram as follows.
Diagram No. 9:18 Level of Organizational Performance for Cities
Chi-Square Test
Value df Test
Pearson Chi-
Square
230.551a 6 Rejected
Chi-square table
Value
12.60
Table No. 9:39 Chi-square Table of Organizational Performance for City
Chi square calculated value = 230.51
Degrees of freedom = 6
161
0
31
4
97
37 29
57
342
313
140
339
0
50
100
150
200
250
300
350
400
Bangalore Kochi Mysore TVM
Axis
Tit
le
Diagram of respondents according level of organisation
performance and city
High
Low
Medium
372
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (230.51) is greater than chi
square tabulated value (12.60) at 5% Level of Significance., therefore null
hypothesis gets rejected.
Therefore Conclusion is: There is difference in the level of organization
performance between four various cities in Karnataka and Kerala
Level of Organizational Performance: State
H07b: There is no difference between the level of organization performance between
two different states Karnataka and Kerala
H17b: There is difference in the level of organization performance between two
different states Karnataka and Kerala
State of College
Total Karnataka Kerala
Student Performance
Level
High 192 4 196
Low 126 94 220
Medium 482 652 1134
Total 800 750 1550
Table No. 9:40 Level of Organizational Performance for State
Above table indicates that out of total 1550 respondents, 800 belong to the State of
Karnataka and 750 belong to State of Kerala. Out of 800 from Karnataka, 192 are
high on level of performance, 126 are low on level of organizational performance
whereas 482 are moderate on level of organizational performance. Out of 750 from
373
Kerala, 4 on high level of performance, 94 are low on level of organizational
performance whereas 652 are moderate on level of organizational performance.
Above information is presented using bar diagram as follows.
Diagram No. 9:19 Level of Organizational Performance for States
Chi-Square Test
Value df Test
Pearson Chi-Square 209.071a 2 Rejected
Chi-square table
Value
5.99
Table No. 9:41 Chi-square Table of Organizational Performance for State
Chi square calculated value = 209.071
Degrees of freedom = 2
Chi square tabulated value = 5.99
Result of test = Rejected
192
4
126 94
482
652
0
100
200
300
400
500
600
700
Karnataka Kerala
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of
organisation performance and state
High
Low
Medium
374
Conclusion: Since the chi square calculated value (209.071) is greater than chi
square tabulated value (5.99) at 5% Level of Significance., therefore null hypothesis
gets rejected.
Therefore Conclusion is: There is difference in the level of organization
performance between two states: Karnataka and Kerala
Level of Organizational Performance: Gender
H07c: There is no difference in the level of organization performance between Genders
H17c: There is difference in the level of organization performance between Genders
Gender
Total Female Male
Students Performance
level
High 80 116 196
Low 88 132 220
Medium 529 605 1134
Total 697 853 1550
Table No.9:42 Level of Organization Performance for Gender
Above table indicates that out of total 1550 respondents, 697 are females and 853
are males.
375
Out of 697 females, 80 are high on level of performance, 88 are low on level of
organizational performance whereas 527 are moderate on level of organizational
performance.
Out of 853males, 116 on high level of performance, 132 are low on level of
organizational performance whereas 605 are moderate on level of organizational
performance.
Above information is presented using bar diagram as follows.
Diagram No. 9:20 Level of Organizational Performance for Gender
Chi-square Test
Value df Test
Pearson Chi-
Square
4.854a 2 Accepted
80 116
88 132
529
605
0
100
200
300
400
500
600
700
Female Male
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of oganisation
performance and gender
High
Low
Medium
376
Chi-square table
Value
5.99
Table No. 9 :43 Chi-square Table of Organizational Performance for Gender
Chi square calculated value = 4.854
Degrees of freedom = 2
Chi square tabulated value = 5.99
Result of test = Accepted
Conclusion: Since the chi square calculated value (4.854) is lesser than chi square
tabulated value (5.99) at 5% Level of Significance., therefore null hypothesis gets
Accepted.
Therefore Conclusion is: There is no difference in the level of organization
performance between gender in the states of Karnataka and Kerala.
Level of Organizational Performance: Year of Study
H07d: There is no difference in the level of organization performance based on the year of
study
H17d: There is difference in the level of organization performance based on the year of
study
Year of Study
Total Final Year Ist Year IInd Year IIIrd Year
Students
performance
High 28 81 59 28 196
Low 79 33 32 76 220
377
Medi 162 176 432 364 1134
Total 269 290 523 468 1550
Table No. 9: 44 Level of Organizational Performance: Year of Study
Above table indicates that out of total 1550 respondents, 269 are final year students,
290 are first year students, 523 are second year students and 468 are third year
students.
Out of 269 Final years, 28 are high on level of performance, 79 are low on level of
organizational performance whereas 162 are moderate on level of organizational
performance. Out of 290 First Years, 81 on high level of performance, 33 are low on
level of organizational performance whereas 176 are moderate on level of
organizational performance. Out of 523 Second Years, 59 on high level of
performance, 32 are low on level of organizational performance whereas 432 are
moderate on level of organizational performance. Out of 468 Third Years, 28 on
high level of performance, 76 are low on level of organizational performance
whereas 364 are moderate on level of organizational performance.
Above information is presented using bar diagram as follows.
378
Diagram No. 9:21 Level of Organizational Performance for Gender
Chi-Square Test
Value df
Pearson Chi-Square 162.565a 6 Rejected
Chi-square table
Value
12.60
Table No. 9:45 Chi-square table of Level of Organizational Performance: Year
of Study
Chi square calculated value = 162.565
Degree of freedom = 2
Chi square tabulated value = 12.60
Result of test = Rejected
81 59
28 28 33 32
76 79
176
432
364
162
0
50
100
150
200
250
300
350
400
450
500
First Year Second Year Third Year Final Year
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of oganisation
performance and gender
High
Low
Medium
379
Conclusion: Since the chi square calculated value (162.565) is greater than chi
square tabulated value (12.60) at 5% Level of Significance., therefore null
hypothesis gets rejected.
Therefore Conclusion is: There is difference in the level of organization
performance based on the ‘year of study’ in the states of Karnataka and Kerala
Level of Organizational Performance: with whom you Stay
H07e: There is no difference in the level of organization performance based on with
whom they stay
H17e: There is difference in the level of organization performance based on with
whom they stay
With whom you stay
Total
College
Hostel Parents
Paying
Guest
Sharing Pvt.
Room
Organizational
Performance
High 86 73 14 23 196
Low 62 79 41 38 220
Medium 435 375 139 185 1134
Total 583 527 194 246 1550
Table No. 9: 46 Level of Organizational Performance: With whom you stay
Above table indicates that out of total 1550 respondents, 583 are in college hostel,
527 stay with parents, 194 are staying as paying guests and 246 are sharing private
rooms.
380
Out of 583 college hostellers, 86 are high on level of performance, 62 are low on
level of organizational performance whereas 435 are moderate on level of
organizational performance.
Out of 527 staying with parents, 73 on high level of performance, 79 are low on
level of organizational performance whereas 375 are moderate on level of
organizational performance.
Out of 194 staying as paying guests, 14 on high level of performance, 41 are low on
level of organizational performance whereas 139 are moderate on level of
organizational performance.
Out of 246 who share private rooms, 23 on high level of performance, 38 are low on
level of organizational performance whereas 185 are moderate on level of
organizational performance.
Above information is presented using bar diagram as follows.
Diagram No. 9:22 Level of Organization Performance for with whom you stay
0
100
200
300
400
500
College Hostel Parents Paying Guest Sharing Private Room
Nu
mb
er
of
Re
spo
nd
en
ts
Diagram of respondents according level of oganisation performance and residence type
High
Low
Medium
381
Value df Test
Pearson Chi-
Square
22.239a 6 Rejected
Chi square table
Value
12.6
Table No. 9:47 Chi square Table of Organizational Performance: With whom
you stay
Chi square calculated value = 22.239
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (22.239) is greater than chi
square tabulated value (12.60) at 5% Level of Significance., therefore null
hypothesis gets Rrejected.
Therefore Conclusion is: There is difference in the level of organization
performance based on ‘with whom you stay’ in the states of Karnataka and
Kerala
Level of Organizational Performance: Parents’ Qualification
H07f: There is no difference in the level of organization performance based on
parent’s qualification
H17f: There is difference in the level of organization performance based on parent’s
qualification
Level of Organizational Performance: Parents’ Qualification
382
H07f: There is no difference in the level of organization performance based on
parent’s qualification
H17f: There is difference in the level of organization performance based on parent’s
qualification
Parents Qualification
Total
Students
Performance
Level
At least
one
graduate
Both
Graduat
e
Both non
graduates
Both Post
graduate
Both
Uneducat
ed
High 61 53 59 15 8 196
Low 46 85 54 29 6 220
Medium 307 510 200 93 24 1134
Total 414 648 313 137 38 1550
Table No. 9:48 Level of Organizational Performance: Parents’ Qualification
Above table indicates that out of total 1550 respondents, 414 are parents at least one
graduate, 648 both graduates, 313 are parents both non graduates, 137 parents both
are post graduates and 38 parents both uneducated. Out of 414 parents at least one
graduate, 61 are high on level of performance, 46 are low on level of organizational
performance whereas 307 are moderate on level of organizational performance. Out
of 648 parents both graduates 53 on high level of performance, 85 are low on level
of organizational performance whereas 510 are moderate on level of organizational
performance. Out of 313 parents both non graduates, 59 on high level of
performance, 54 are low on level of organizational performance whereas 200 are
moderate on level of organizational performance. Out of 38 both parents
uneducated, 8 on high level of performance, 6 are low on level of organizational
performance whereas 24 are moderate on level of organizational performance.
Above information is presented using bar diagram as follows.
383
Diagram No. 9:23 Level of Organizational Performance for Parents’
Qualification
Chi Square Test
Value df Result
Pearson Chi-Square 41.23 8 Rejected
Chi-square table
Value
Table No. 9:49 Chi square Table of Organizational Performance: Parents’
qualification
Chi square calculated value = 41.232
Degrees of freedom = 8
Chi square tabulated value = 15.50
Result of test = Rejected
61 53 59 15 8
46 85
54 29
6
307
510
200
93
24
0
100
200
300
400
500
600
At least one
graduate
Both Graduate Both non
graduates
Both Post graduate Both Uneducated
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of oganisation performance and
qualification of parents
High
Low
Medium
384
Conclusion: Since the chi square calculated value (41.232) is greater than chi
square tabulated value (15.50) at 5% Level of Significance. Therefore null
hypothesis gets rejected.
Therefore Conclusion is: There is difference in the level of organization
performance based on ‘parent’s qualification’ in the states of Karnataka and
Kerala
Level of Organizational Performance: Monthly Income
H07g: There is no difference in the level of organization performance based
Monthly Income
H17g: There is difference in the level of organization performance based on
Monthly Income
Monthly Income
Total
25,000 to
50,000
Above Rs
50,000
Below Rs
25,000
Organizational
Performance
High 54 69 73 196
Low 105 59 56 220
Medium 614 340 180 1134
Total 773 468 309 1550
Table No. 9:50 Level of Organizational Performance: Monthly Income
Above table indicates that out of total 1550 respondents, 773 are in an income
category of 25,000 to 50,000, 468 are above 50,000, 309 are below 25,000.
Out of 773 in the category of 25,000 to 50,000, 54 are high on level of performance,
105 are low on level of organizational performance whereas 614 are moderate on
level of organizational performance.
385
Out of 468 in the category of Above 50,000, 69 on high level of performance, 59 are
low on level of organizational performance whereas 340 are moderate on level of
organizational performance.
Out of 309 in the category of below 25,000, 73 on high level of performance, 56 are
low on level of organizational performance whereas 180 are moderate on level of
organizational performance.
Above information is presented using bar diagram as follows.
Diagram No. 9:24 Level of Organization Performance for Monthly Income
Chi-Square Test
Value df Test
Pearson Chi-Square 68.61 4 Rejected
Chi-square table
Value
9.48
Table No. 9:51 Chi square Table of Organizational Performance: Monthly
Income
54 69 73 105
59 56
614
340
180
0
100
200
300
400
500
600
700
25,000 to 50,000 Above Rs 50,000 Below Rs 25,000
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of oganisation performance
and monthly income High
Low
Medium
386
Chi square calculated value = 68.618
Degrees of freedom = 4
Chi square tabulated value = 9.48
Result of test = Rejected
Conclusion: Since the chi square calculated value (68.618) is greater than chi
square tabulated value (9.48) at 5% Level of Significance, therefore null hypothesis
gets rejected.
Therefore Conclusion is: There is difference in the level of organization
performance based on ‘family monthly income’ in the states of Karnataka and
Kerala
------------------------------------------------------------------------------------------------------
Level of Social Acceptability
H08: There is no association between Social Acceptability and demographic factors
of Private Self Financing Engineering Colleges in Kerala and Karnataka
H18: There is association between Social Acceptability and demographic factors of
Private Self Financing Engineering Colleges in Kerala and Karnataka
Level of Social Acceptability: City
H08a: There is no difference between the level of social acceptability between four
various cities in Karnataka and Kerala
H18a: There is difference between the level of social acceptability between four
various cities in Karnataka and Kerala
387
Social acceptability level
Total Cities High Low Medium
Bangalore 67 5 128 200
Kochi 0 45 155 200
Mysore 84 13 103 200
TVM 0 63 137 200
Total 151 126 523 800
Table No. 9:52 Level of Social Acceptability: City
The Above table indicates that out of 800 respondents where 200 each from 4 cities.
Out of 151who are high on the level of social acceptability 67 are of Bangalore,
none of Kochi, 84 of Mysore and none of Trivandrum. Out of 126 who are low on
the level of social acceptability 5 are of Bangalore, 45 of Kochi, 13 of Mysore and
63 of Trivandrum. Out of 523 who are moderate on the level of social acceptability
128 are of Bangalore, 155 of Kochi, 103 of Mysore and 137 of Trivandrum.
Above information is presented using bar diagram as follows.
67
5
45
13
63
128
155
103
137
0
20
40
60
80
100
120
140
160
180
Bangalore Kochi Mysore TVM
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of social accepatability
and city High
Low
Medium
388
Diagram No. 9:25 Level of Social Acceptability: City
Chi-Square Test
Value df Test
Pearson Chi-Square 236.01 6 Rejected
Chi-Square Table
value
12.60
Table No. 9:53 Chi square table for Social Acceptability: City
Chi square calculated value = 236.016
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (236.016) is greater than chi
square tabulated value (12.60) at 5% Level of Significance, therefore null hypothesis
gets rejected.
Therefore Conclusion is: There is difference in the level of social acceptability
between different cities in the states of Karnataka and Kerala
Level of Social Acceptability: State
H08b: There is no difference between the level of social acceptability between two
states, Karnataka and Kerala
H18b: There is difference between the level of social acceptability between two
states, Karnataka and Kerala
State
Social Acceptability Level Total
389
High Low Medium
Karnataka 151 18 231 400
Kerala 0 108 292 400
Total 151 126 523 800
Table No. 9:54 Level of Social Acceptability: State
The Above table indicates that out of 800 respondents where 400 each is from 2
states Karnataka and Kerala. Out of 151who are high on the level of social
acceptability 151are of Karnataka, none of Kerala. Out of 126 who are low on the
level of social acceptability 18 are of Karnataka and 108 are of Kerala. Out of 523
who are moderate on the level of social acceptability 231 are of Karnataka and 292
are of Kerala
Above information is presented using bar diagram as follows.
Diagram No. 9:26 Level of Social Acceptability: State
Chi-Square Test
Value df Test
151
0 18
108
231
292
0
50
100
150
200
250
300
350
Karnataka Kerala
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of social accepatability
and state
High
Low
Medium
390
Pearson Chi-Square 222.40 2 Rejected
Chi-Square Table
value
5.99
Table No. 9:55 Chi square table for Social Acceptability: State
Chi square calculated value = 222.400
Degrees of freedom = 2
Chi square tabulated value = 5.99
Result of test = Rejected
Conclusion: Since the chi square calculated value (222.400) is greater than chi
square tabulated value (5.99) at 5% Level of Significance, therefore null hypothesis
gets rejected.
Therefore Conclusion is: There is difference in the level of social acceptability
between different states: Karnataka and Kerala
Level of Social Acceptability: Age
H08c: There is no difference between the level of social acceptability between
different age groups in two states, Karnataka and Kerala
H18c: There is difference between the level of social acceptability between different
age groups in two states, Karnataka and Kerala
Social Acceptability Level Total
391
Age
Group
High Low Medium
Age 30 to 40 41 88 289 418
41 to 50 29 9 62 100
Above 50 16 3 24 43
Below 30 65 26 148 239
Total 151 126 523 800
Table No. 9:56 Level of Social Acceptability: Age
The Above table indicates that out of 800 respondents, 418 belong to an age group
between30-40, 100 respondents belong to 41-50, 43 belong to the category of Above
50, and 239 belong to Below 30 category.
Out of 151 who are high on the level of social acceptability 41 belongs to 30-41, 29
belong to 41-50, 16 belong to Above 50 and 65 belong to below 30.
Out of 126 who are low on the level of social acceptability 88 are of 30-40 and 9 are
of 41-50, 3 are of above 50 and 26 are of below 30
Out of 523 who are moderate on the level of social acceptability 289 are of 31-40,
62 are of 0f 41-50, 24 are of above 50 and 148 belong below 30 category.
Above information is presented using bar diagram as follows.
392
Diagram No. 9: 27 Level of Social Acceptability: State
Chi-Square Test
Value df Test
Pearson Chi-Square 58.23 6 Rejected
Chi-Square Table
value
12.60
Table No. 9:57 Chi square table for Social Acceptability: State
Chi square calculated value = 58.235
Degrees of freedom = 2
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (58.235) is greater than chi
square tabulated value (12.60) at 5% Level of Significance, therefore null hypothesis
gets rejected.
Therefore Conclusion is: There is difference in the level of social acceptability
between different age groups in the states of Karnataka and Kerala
65 41
29 16 26
88
9 3
148
289
62
24
0
50
100
150
200
250
300
350
Below 30 30 to 40 41 to 50 Above 50
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of social
accepatability and age group (in years)
High
Low
Medium
393
Level of Social Acceptability: Gender
H08d: There is no difference between the level of social acceptability between
different gender in two states, Karnataka and Kerala
H18d: There is difference between the level of social acceptability between different
gender in two states, Karnataka and Kerala
Gender
Social Acceptability Level
Total High Low Medium
Female 66 72 276 414
Male 85 54 247 386
Total 151 126 523 800
Table No. 9:58 Level of Social Acceptability: Gender
The Above table indicates that out of 800 respondents, 414 are females and 386 are
males.
Out of 151 who are high on the level of social acceptability 66 belongs to females
and 85 belongs to male category.
Out of 126 who are low on the level of social acceptability 72 are females and 54 are
males.
Out of 523 who are moderate on the level of social acceptability 276 are females and
247 are males.
Above information is presented using bar diagram as follows.
394
Diagram No. 9:28 Level of Social Acceptability: Gender
Chi-Square Test
Value df Test
Pearson Chi-Square 5.59 2 Accepted
Chi-Square Table
value
5.99
Table No. 9:59 Chi square Table for Social Acceptability: Gender
Chi square calculated value = 5.597
Degrees of freedom = 2
Chi square tabulated value = 5.99
Result of test = Accepted
Conclusion: Since the chi square calculated value (5.597) is lesser than chi square
tabulated value (5.99) at 5% Level of Significance, therefore null hypothesis gets
Accepted.
66 85
72 54
276
247
0
50
100
150
200
250
300
Female Male
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of social
accepatability and gender High
Low
Medium
395
Therefore Conclusion is: There is no difference in the level of social
acceptability between different gender in the states of Karnataka and Kerala
Level of Social Acceptability: Monthly Income
H08e: There is no difference between the level of social acceptability between
different monthly income groups in two states, Karnataka and Kerala
H18e: There is difference between the level of social acceptability between different
monthly income groups in two states, Karnataka and Kerala
Social Acceptability Level
Total Monthly Income High Low Medium
Monthly Income 10,000 to 25,000 39 69 222 330
25,000 to 50,000 49 41 184 274
Above Rs 50,000 34 12 88 134
Below 10000 29 4 29 62
Total 151 126 523 800
Table No. 9:60 Level of Social Acceptability: Monthly Income
The Above table indicates that out of 800 respondents, 330 belong to an income
category of 10,000 to 25,000, 274 are between 25,000 to 50,000, 134 belong to
above 50,000 and 62 belong to a category of below 10,000.
396
Out of 151 who are high on the level of social acceptability 39 belongs to 10.000 to
25,000, 49 belongs to 25,000 to 50,000, 34 belongs to above 50.000, and 29 belongs
to below 10,000 category.
Out of 126 who are low on the level of social acceptability 69 belongs to 10.000 to
25,000, 41 belongs to 25,000 to 50,000, 12 belongs to above 50.000, and 4 belongs
to below 10,000 category.
Out of 523 who are moderate on the level of social acceptability 222 belongs to
10.000 to 25,000, 184 belongs to 25,000 to 50,000, 88 belongs to above 50.000, and
29 belongs to below 10,000 category.
Above information is presented using bar diagram as follows.
Diagram No. 9:29 Level of Social Acceptability: Monthly Income
Value df Test
Pearson Chi-Square 54.028 6 Rejected
Chi-Square Table
value
12.60
Table No. 9:61 Chi square Table for Social Acceptability: Monthly Income
0
50
100
150
200
250
10,000 to 25,000 25,000 to 50,000 Above Rs 50,000 Below 10000
Nu
mb
er o
f R
esp
on
den
ts
Diagram of respondents according level of social
accepatability and Monthly Income High
Low
Medium
397
Chi square calculated value = 54.028
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Rejected
Conclusion: Since the chi square calculated value (54.028) is greater than chi
square tabulated value (12.60) at 5% Level of Significance, therefore null hypothesis
gets Rejected.
Therefore Conclusion is: There is difference in the level of social acceptability
based different income groups in the states of Karnataka and Kerala
Level of Social Acceptability: Occupation
H08f: There is no difference between the level of social acceptability between
different occupation in two states, Karnataka and Kerala
H18f: There is difference between the level of social acceptability between different
occupation in two states, Karnataka and Kerala
Occupation
Social Acceptability Level
Total High Low Medium
Business 24 21 66 111
Others 65 51 240 356
Professional 48 40 160 248
Service 14 14 57 85
Total 151 126 523 800
Table No. 9:62 Level of Social Acceptability: Occupation
398
The Above table indicates that out of 800 respondents, 111 belong to Business in the
occupation category 356 belong to others category, 248 belong to professional
category and 85 belong to a category of Service.
Out of 151 who are high on the level of social acceptability 24 belong to business,
65 belong to others, 48 belong to professional and 14 belong to service.
Out of 126 who are low on the level of social acceptability21 belong to business, 51
belong to others, 40 belong to professional and 14 belong to service.
Out of 523 who are moderate on the level of social acceptability 66 belong to
business, 240 belong to others, 160 belong to professional and 57 belong to service.
Diagram No. 9:30 Level of Social Acceptability: Occupation
Chi-Square Test
Value df Test
Pearson Chi-Square 2.90 6 Accepted
Chi-Square Table
value
12.60
Table No. 9: 63 Chi square Table for Social Acceptability: Monthly Income
24
65 48
14 21
51 40
14
66
240
160
57
0
50
100
150
200
250
300
Business Others Professional Service
Nu
mb
er o
f re
spo
nd
ents
Diagram of respondents according level of social
accepatability and Occupation High
Low
Medium
399
Chi square calculated value = 2.909
Degrees of freedom = 6
Chi square tabulated value = 12.60
Result of test = Accepted
Conclusion: Since the chi square calculated value (2.909) is lesser than chi square
tabulated value (12.60) at 5% Level of Significance, therefore null hypothesis gets
accepted. Therefore Conclusion is: There is no difference in the level of social
acceptability based different occupation in the states of Karnataka and Kerala
Hypothesis Testing: Results at a Glance
Objectives Null Hypothesis Tests Applied
Hypothesis
ACCEPTED/RE
JECTED
To study organizational
culture of private self
financing engineering
collegesin Kerala and
Karnataka
There is no difference in
Organization Culture of
Private Self Financing
Engineering Colleges of
Kerala and Karnataka
Chi-square
test, ANOVA
and F-test,
Paired sample
t-test
REJECTED
To study organizational
performance of private
self financing
engineering colleges in
Kerala and Karnataka
There is no difference in
Organization
Performance of Private
Self Financing
Engineering Colleges of
Kerala and Karnataka
Chi-square
test, ANOVA
and F-test,
Paired sample
t-test
REJECTED
To study social
Acceptability of private
self financing
engineering colleges in
Kerala and Karnataka
There is no difference in
Social Acceptability of
Private Self Financing
Engineering Colleges of
Kerala and Karnataka
Chi-square
test, ANOVA
and F-test,
Paired sample
t-test
REJECTED
To study the impact of
organizational culture
on Social Acceptability
of private self financing
engineering colleges in
Kerala and Karnataka
There is no impact of
Organizational Culture
on Social Acceptability
of Private Self Financing
Engineering Colleges of
Kerala and Karnataka
Correlation REJECTED
To study the impact of
organizational
performance on Social
There is no impact of
Organizational
Performance on Social
Correlation REJECTED
400
Acceptability of private
self financing
engineering collegesin
Kerala and Karnataka
Acceptability of Private
Self Financing
Engineering Colleges of
Kerala and Karnataka
To study the
association between
Organizational Culture,
to various demographic
factors (gender, family
income& state of
origin) of private self
financing engineering
collegesin Kerala and
Karnataka
There is no association
between Organization
Culture and demographic
factors of Private Self
Financing Engineering
Colleges of Kerala and
Karnataka
Chi-Square
REJECTED
(Except for
Gender)
To study the
association between
Organizational
Performance to various
demographic factors
(gender, family
income& state of
origin) of private self
financing engineering
collegesin Kerala and
Karnataka
There is no association
between Organizational
Performance and
demographic factors of
Private Self Financing
Engineering Colleges of
Kerala and Karnataka
Chi-Square
REJECTED
(Except for
Gender)
To study the
association between
Social Acceptability to
various demographic
factors (gender, family
income& state of
origin) of private self
financing engineering
colleges of Kerala and
Karnataka
There is no association
between Social
Acceptability and
demographic factors of
Private Self Financing
Engineering Colleges of
Kerala and Karnataka
Chi-Square
REJECTED
(except for
Gender and
Occupation)
Table: 9:64 Hypothesis Testing Results at a Glance
401
CHAPTER 10
FINDINGS AND CONCLUSIONS
After detailed statistical analysis of the data collected from various souses,
numerous suitable and relevant findings were reached at. They are summarized as
the following:
Organizational Culture
Out of total 700 respondents, 250 (35.7%) respondents represented Bangalore, 150
(21.4%) each from Kochi, Mysore and Trivandrum respectively. The Mean score of
Organization culture of Bangalore is 77.79, of Kochi 63.83, of Mysore 82.87 and of
Trivandrum is 69.04. Mysore is found to be the highest in mean score on
organizational culture and Kochi is found to be the lowest. Among the states Kerala
(66.61) has a low mean score on organizational culture compared to Karnataka
(79.68).
Out of total 700 respondents, 254 (36.3%) respondents represented an age group of
31 to 40 years, 169 (24.1%) represented age group of 41 to 50 years, 93 (13.3%)
represented age group Above 50 years, and 184 (26.3%) represented age group
below 30 years. Age group between31-40 shows a mean score of 79.32, age group
41-50 shows a mean score of 73.82 above 50 years shows a mean score of 71.20 and
below 30 years shows a mean score of 69.13.
Out of total700 respondents, 346 persons (49.4%) are FEMALE and 354 (50.6) are
MALE. The mean score of Organizational Culture for Female is 73.72 and for Male
is 74.44. There is found very insignificant variation of organizational mean score
among genders.
402
Out of total700 respondents, 43 persons (6.1%) are with Doctorate and 657 (93.9%)
are Post Graduates. The mean score of Organizational Culture for Doctorate group is
79.74 and for Post Graduate is 73.71.
Out of total700 respondents, 58 are Associate Professors (8.3%), 285 (40.7% ) Asst.
Professors, 269 (38.4%) Other Designations and 88 (12.6%) are Professors. The
mean score of Organizational Culture for the Associate Professors is 79.55.
Assistant Professors 74.72, Others 69.77 and for Professors is 81.57. The mean
score on organizational culture for professors are to be very high.
Based on the information collected on ‘Total experience as a faculty’ out of total
700 respondents, 289 (41.3%) possess an experience of 5 to 10 years as Faculties,
267 (38.1%) have an experience less than 5 yrs and 144 (20.6%) have an experience
more than 10 years. Those with experience of 5-10 years have the mean score of
74.11, those with experience less than 5 years have a score of 74.83and those with
experience more than 10 years have a score of 72.61. Whereas on the information
collected based on the experience within the organization out of total 700
respondents, 232 (33.1%) possess an experience of 5 to 10 years as Faculties, 384
(54.1%) have an experience less than 5 yrs and 84 1(2.0%) have an experience more
than 10 years. Those with experience of 5-10 years have the mean score of 73.40,
those with experience less than 5 years have a score of 74.22 and those with
experience more than 10 years have a score of 75.28.
With regard to the information collected of those with experience in the industry out
of total 700 respondents, 207 (29.6 %) possess an experience of 5 to 10 years as
Faculties, 366 (52.3%) have an experience less than 5 years and 103 (14.7 %) have
an experience more than 10 years and 24 (3.4%). Those with experience of 5-10
years have the mean score of 73.23, those with experience less than 5 years have a
403
score of 74.66, with experience more than 10 years have a score of 73.64, and with
no experience have the mean score of 75.18.
The factors considered in measuring the organization culture were 1. Attitude
towards students 2. Teaching Skill 3. Campus placement facility 4. Faculty Morale
5. Organizational Glue 6. .Leadership practices and 7. Professional satisfaction. The
respective mean scores for each of these factor are found to be 75.83, 75.64, 68.08,
75,16, 73.12, 72. 57 and 72.77. The score considering that of facilities of placement
is found to lower in comparison with all other factors.
It is found that is there is association between level of organization culture and state
of respondents.
The difference in the mean scores of Organization Culture between four cities is
statistically significant. The mean score of Karnataka is found to be greater than that
of Kerala meaning to say Karnataka has better organization culture than Kerala.
It is found that with respect to the demographic factors, there is difference in the
level of Organization Culture between different age groups, between different
qualifications, between different designations in the two states of Karnataka and
Kerala. But there is no difference found in the level of Organization Culture
between different genders in the two states of Karnataka and Kerala.
Organizational Performance
On data collected on organizational performance out of total1550 respondents, 600
(38.7%) respondents represented Bangalore, 350 (22.6%) from Kochi, 200 (12.9%)
from Mysore and 400(25.8) from Trivandrum respectively. The Mean score of
Organization performance of Bangalore is 72.25, of Kochi 67.79, of Mysore 71.19
and of Trivandrum is 67.18. The mean score of Organization performance
Bangalore (72.25) is the highest and of Trivandrum (67.18) is the lowest. Out of
404
total1550 respondents, 800 (51.6) respondents represented from Karnataka and 750
(67.49) represented Kerala. The Mean score of Organization performance of
Karnataka (71.97) is higher than that of Kerala (67.79).
Out of total 1550 respondents, 697 (45%) are FEMALE and 853 (55%) are MALE.
The mean score of Organizational performance for Female is 69.93 and for Male is
69.80. There is no significant difference found between genders with respect to
Organizational performance.
Out of total 1550 respondents, 269 (17.4%) are Final Years. 290(18.7%) First Years,
523 (33.7%) Second years and 468 (30.2%) are Third years. The mean score of
Organizational Performance of final years is 67.31, First years 73.32, second years
70.88 and of third years is 68.05. The mean score of Organizational Performance
based on year of study seems to be the highest among first years (73.32) and lowest
among final years (67.31). It could also be found that as the year of study increases
the mean score of Organizational Performance decreases.
In an analysis based on ‘with whom they stay’ out of total1550 respondents, 583
(37.6%) are staying in College Hostel, 527 (34%) stay with parents. 194 (12.5%)
stay as paying guests and 246 (15.95%) share private rooms. The mean score of
Organizational Performance of those respondents in the college hostel is 70.95,
‘those staying with parents’ is 69.86, those who are paying guests is 68.11 and of
those sharing private rooms is 68.95. The highest in the category of ‘with whom you
stay’ mean score of Organizational Performance of those respondents in the college
hostel is 70.95
Out of total 1550 respondents, parents of 414 (26.7%) are at least one graduate, 648
(41.8%) parents both are graduates. 313 (20.2%) parents both are non graduates,
137 (8.8%) share parents both are post graduate. And 38 (2.5%) parents both are
405
uneducated. The mean score of Organizational Performance of Parents at least one
graduate is 71.14, Parents both Graduates 68.78, Parents both non graduates 70.83,
parents both post graduates 68.38 and parents both uneducated is 71.69.
Organizational Performance is found as the highest of those whose parents both are
uneducated (71.69) and the lowest of those parents both are post graduates.
Out of total1550 respondents,773 (49.9%) are between a family monthly income of
25,000 to 50,000, 468 (30.2%) with an income Above 50,000, 309 (19.9%) with an
income below 25,000 The mean score of Organizational Performance on Middle
Income group is 68.71, High Income group is 70.78 and Low income group is 71.35.
Organizational Performance is found as the highest of those with family income
below 25,000 (71.35) and the lowest of those in the middle income group.
The factors considered in measuring the organizational performance were 1.
Infrastructures 2. Library 3. Canteen/Catering Services 4. Level of Goodwill 5.
Placement Facilities and 6. Institutional Strength. The respective mean scores for
each of these factor are found to be 70.48, 70.30, 64.16, 72.39, 68.39, and 71.55.
The score considering that of facilities canteen/catering services and facilities of
placements are found to lower in comparison with all other factors.
It is found that here is association between Organizational Performance and the
states of respondents.
Statistically there is no significant difference in mean scores of organization
performance of cities of same state.
There is significant difference in mean scores of organization performance of cities
of different states.
406
It is found that there is significant difference between mean scores of organizational
performance of two states. It is also found that Organizational Performance score is
better for Karnataka state in comparison to Kerala.
There is difference in the level of organizational performance based on the ‘year of
study’ on ‘with whom you stay’, ‘parent’s qualification’ and ‘family monthly
income’ in the states of Karnataka and Kerala. There is difference in the level of
organization performance based on ‘with whom you stay’ in the states of Karnataka
and Kerala. It is also found that there is no difference in the level of organizational
performance between gender in the states of Karnataka and Kerala
Social Acceptability
Above table indicate that out of total 800 respondents, 200 each fall under each city
and each city represents 25% of the sample size. And the score of social
acceptability for the city of Bangalore is 66.01, for Kochi 50.07, city of Mysore
67.14 and for Trivandrum 50.13. Among the cities Mysore shows the highest level
of social acceptability (67.14) and Kochi shows the lowest with 50.17. Out of total
800 respondents, 400 each fall under each state and each state represents 50% of the
sample size. And the score of social acceptability for Karnataka is 66.057 and for
Kerala is 50.19.
Out of total 800 respondents,418 respondents fall the age group of 31-40 (52.3%),
100 respondents in the category of 41-50, 43 respondents Above 50 category and
238 (29.9% in the Below 30 category and each city represents 25% of the sample
size. And the score of social acceptability for the category of age below 30 is 66.16,
between 31-40 is 54.88, 41-50 has a mean score of 62.94 and for those above 50 has
a mean score of 66.16. The score of social acceptability is found to be the highest
407
among the category of age below 30 and above 50 (66.16) and lowest among the
category of age between 31-40.
Out of total 800 respondents, 414 respondents fall in the category of FEMALE and
386 respondents in the category of MALE. The score of social acceptability for the
category of female is 57.24 and for male is 59.61. There is no significant difference
in the scores between gender.
Out of total 800 respondents, 25 (3.1%) respondents fall in the category of Below
SSC, 404 (50.5%) respondents in the category of Graduates, 50 (6.3%) respondents
the category of Non Graduates, 14 (1.8) in other category and 307 (38.4) in the
category of post graduates. The score of social acceptability for the category of
Below SSC is 53.73, Graduate is 56.25, Non Graduate is 60.84, Others 61.36 and
Post Graduate is 61.03. Social acceptability is found to be higher among
qualifications as post graduates and others (61,03, 61.36) and lowest among the
category below SSC.
Out of total 800 respondents, 330 (41.3 %) respondents fall in the category of
10,000 to 25,000, 274 (34.3 %) respondents in the category 25,000 to 50,000, 134
(16.8%) respondents the category of Above 50.000, 62 (7.8%) in below 10.000
category. The score of social acceptability for the category Between 10,000 to
25,000 is 54.84, 25,000 to 50,000 is 58.58, Above 50,000 is 62.22and Below 10,000
is 66.96. The social acceptability score is found to be the highest among those below
an income of 10.000 (66.96) and lowest among those who are between 10,000 -
25,000 (54.84).
Out of total 800 respondents, 111 (13.9 %) respondents fall in the category of
Business, 356 (44.5 %) respondents in the category Others, 248 (31%) respondents
the category of Professional, 85 (10.6%) in Service category. The score of social
408
acceptability for the category of Business is 58.02, others is 57.76, Professional is
59.37and Service is 58.56. There is no significant difference is seen among the
scores of this category.
The factors considered in measuring the Social Acceptability were 1. Infrastructure
2. Library 3. Canteen/Catering Services 4. Level of Goodwill 5. Placement
Facilities and 6. Institutional Strength. The respective mean scores for each of these
factor are found to be 70.48, 70.30, 64.16, 72.39, 68.39, and 71.55. The score
considering that of facilities canteen/catering services and facilities of placements
are found to lower in comparison with all other factors.
The factors considered in measuring the Social Acceptability were 1. Awareness 2.
Trust and Confidence 3. Value for Money 4. Quality of Service and 5. Willingness
to Cooperate. The respective mean scores for each of this factor are found to be
66.78, 55.84, 52.32, 58.34 and 57.98. The score considering the Value for Money
(52.32) is found to lower in comparison with all other factors.
The aggregate score of organizational culture is found to be 72.57, Organizational
performance 72.55 and Social Acceptability is 58.38. The mean score on Social
acceptability is found to be very low.
It is statistically found that there is association between level of social acceptability
and state of respondents.
It is found that there is no significant difference in mean scores of social
acceptability of cities of same state. It is also found that there is significant
difference in mean scores of social acceptability of cities of different states.
It is found that there is significant difference between mean scores of social
acceptability of two states. It could be said that is that the social acceptability score
is better for Karnataka state as compared to Kerala.
409
Organizational Culture and Social Acceptability
From the mean scores on organization culture and social acceptability between
different cities of Karnataka and Kerala it is found that that to a decrease in
organization culture score there is also decrease in social acceptability score. If there
is increase in organization culture score there is also increase in social acceptability
score. As the organization culture is high the social acceptability score also is found
to be high and vice versa.
It is found that there is a high level of positive correlation between Organizational
culture and social acceptability.
Organizational Performance and Social Acceptability
From the mean scores on organization performance and social acceptability between
different cities of Karnataka and Kerala it is found that that to a decrease in
organizational performance score there is also decrease in social acceptability score.
If there is increase in organization performance score there is also increase in social
acceptability score. As the organization performance is high the social acceptability
score also is found to be high and vice versa.
It is found that there is a high level of positive correlation between Organizational
performance and social acceptability.
410
CHAPTER 11
SUGGESTIONS AND RECOMMENDATIONS
The present study ‘Impact of Organizational Culture and Organizational
Performance on the Social Acceptability of Private Self Financing Engineering
Colleges in Kerala and Karnataka’ has been a search to understand the role of
organization culture and organizational performance in building social acceptability.
The study has explained that there exists a high level of correlation between
organizational culture, organizational performance and social acceptability. Through
different tests applied in the study, the null hypotheses have been rejected to prove
the fact that there exists a close relationship between organization culture,
organizational performance and social acceptability.
The study has been instrumental to show that organisation culture constitutes as the
basis of the strong relationship that could exist between these three factors. The
study has proved that the strength of the organization culture leads to a better
organisational performance and thereby a strong social acceptability. This leads the
researcher to conclude that if the institutions can improve the level of organization
culture in the organisation, it would automatically lead to the enhancement in those
factors of Organization Performance and Social acceptability.
In order to improve the organization culture of an educational institution would
mean to upgrade the quality of teaching skills of the teaching faculty, upgrade the
placement facilities in the organization, improve the organizational glue, make
necessary improvement in the leadership practices in the organization and thereby
radically improve the professional satisfaction of everyone in the organization. From
411
the present study the placement facilities provided in the organization, the
professional satisfaction experienced by the teaching faculty, the organizational glue
and leadership practices could be found as the critical factors which need critical up-
gradation for creating a better organizational culture in the private self financing
engineering colleges.
The organizational performance could also be seen as an important element that
leads to the upgradation in the social acceptability of the organization. Since social
acceptability plays a very crucial role in the existence of a private self financing
higher educational institution in a competitive world, organizational performance
has a very significant role to play. The organization would have to take care of the
factors which have a significant role in the processes of its service delivery like
infrastructure, library and canteen facilities. The placement facilities provided carry
a higher weightage in the performance aspect of a professional educational
institution. The level of goodwill the organization has developed over the years and
the institutional strengths like the results; admissions etc are also contributive factors
to the organizational performance. But the most critical factors for the low
performance level as per the present study would be the factors of process
performance like canteen, infrastructure, library and the placement facilities
provided to the students. Therefore improving the performance level of the
organization would mean to take care of these aspects of the private self financing
higher educational institutions.
Social acceptability is found as a resultant outcome of organizational culture and
organizational performance. But it serves as a vital element in the existence of
private self financing higher educational institutions. The most important factors
considered would be awareness of the public of such institutions, trust and
412
confidence in those institutions, the faith that these institutions provide the value for
money, the quality of service provided by these institutions, and the willingness of
the public to cooperate with these institutions.
All the elements considered under this factor would need to be improved if the
social acceptability of private self financing higher educational institutions in the
states of Kerala and Karnataka has to be ascribed as high or better. All the factors
which explain this variable are very seriously decisive in themselves as and when
an organization focuses on its social acceptability. The gravest factors among them
are the factor of trust and confidence and the value for money.
The concept of value for money might bring in the issues of what the parents incur
in terms of education in a private self financing higher educational institution. The
general outcome of the study would express the mindset of the public that they fall
short of receiving what they pay for. There was always a contention that existed
against the self financing educational institutions with regard to is fees structure.
There were occasions when the general public came out in aggression expressing
their clamor on the fess structure as something exorbitant. It is greatly recommended
to have a proper and effective accountability in the fees structure to the public
especially to those people who bear the burdens of sending their wards to private
self financing higher educational institution. The system would improve if the public
get a feeling that they receive the value in return for the money they incur in terms
of their wards’ education in private self financing engineering colleges.
The existence and growth of an educational institution especially those belonging to
the private self financing stream would depend to major part on the social
acceptability it ensures from the society. It could be very deeply depended on the
413
mindset of the public on its organizational culture and performance. Therefore the
factor trust and confidence in an educational system could not be generated on its
own. This is an attitude resulted as a byproduct of many factors especially the
variables of organization culture and organizational performance.
In the present study it is shown that the factor of organisation culture of private self
financing engineering colleges in Kerala gets a low score in comparison to that of
Karnataka. Similarly with regard to organizational performance and social
acceptability the same is being replicated. This finding should be an eye opener to
those institutions towards deriving and implementing effective steps towards
improving upon the organizational culture, performance social acceptability.
The level of social acceptability in Kerala and Karnataka as an aggregate of private
self financing in the study is explained just on an average level. The level of social
acceptability in Kerala is found very seriously low in comparison to that of
Karnataka. The scores for social acceptability in Kerala would make the public
believe, that everything claimed by those who oppose this system of privatization of
higher education is proving to be true.
The present study ‘Impact of Organizational Culture and Organizational
Performance on the Social Acceptability of Private Self Financing Engineering
Colleges in Kerala and Karnataka’ is an attempt to consider the impact of
organization culture and organizational performance on social acceptability. The
study was conducted with the present samples in four selected cities of Kerala and
Karnataka has proved that these factors have impact on social acceptability.
Therefore further it is highly recommended that further studies should be undertaken
to find out whether there are any other factors are there in play other than
414
organization culture and organization performance those affect the social
acceptability of privatization of higher education in the state of Kerala in particular
and in India in general.
415
BIBLIOGRAPHY
1. AICTE (1994), Report of the High Power Committee for Mobilization of
Additional Resources for Technical Education, All India Council for
Technical Education, New Delhi.
2. Antony, S. (2002). External quality assurance in Indian higher education:
Case study of the National Assessment and Accreditation Council (NAAC).
International Institute for Educational Planning. Paris.
3. Ambani, M. and K. Birla (2001), Report on a Policy Framework for Reforms
in Education, Government of India, New Delhi.
4. Agarwal, Pawan. (2006). Global competitiveness of higher education in
India. ICRIER Working Paper, New Delhi.
5. AIU. (2004). Round Table on Financing Higher Education in India.
Association of Indian Universities. 4-5 June 2004. Trivandrum.
(Unpublished)
6. Agarwal, Pawan. (2006). Higher Education in India. The Need for Change.
New Delhi, India: Indian Council for Research on International Economic
Relations.
7. Altbach, P. G. (2006a). The Dilemmas of Ranking. International Higher
Education, Number 42, Winter. 2006.
8. Altbach, Philip G. (2005b). Universities: Family Style. International Higher
Education, Number 39, Spring 2005
9. Anandakrishnan, M. (2004). Higher Education in Regional Development:
Some Key Pointers. Indo-UK Collaboration on Higher Education – Policy
Forum Workshop 12-13 February.
10. Anandakrishnan, M. (2006). Privatization of higher education:
Opportunities and anomalies. “Privatization and commercialization of
higher education’ organized by NIEPA, May 2, 2006. New Delhi
11. Anderson, J. A.. (2005). Accountability in education, Educational Policy
Series No.1.International Academy of Education. International Institute for
Educational Planning (IIEP). Paris.
416
12. Altbach Philip G. And Jayaram (2010), ‘Can India garner the demographic
dividend”:The Hindu. 1st December http//www.thehindu.com/opinion
/lead/article24112.ece Homepage (accessed on 21 July 2013)
13. Autor, D. (2006). Computerization and the Division of Labour: How
Computerization Changes What People Do, NBER Neemrana Conference
14. Avery, C., Glickman, M., Hoxby, C., and Metrick, A. (2004). A Revealed
Preference Ranking of U.S. Colleges and Universities. NBER Working
Paper No. 10803 September.
15. Altbach, Philip G. (2006b). The Private Higher Education Revolution: An
Introduction, University News. January 2-8, 2006. Vol. 44 No.01.
16. Anandakrishnan, M. (2006). Privatization of higher education:
Opportunities and anomalies, “Privatization and commercialization of
higher education’ organized by NIEPA , Mau 2, 2006., New Delhi
17. Agarwal, Pawan. (2006). Higher Education in India. The Need for Change.
New Delhi, India: Indian Council for Research on International Economic
Relations.
18. Arora, Alka. (2000). The Increasing Costs of Higher Education to Parents
and Students in India: A Policy Study on Cost Recovery and Access, SUNY
at Buffalo PhD dissertation.
19. Arora, Alka, (1999) Higher Education in India: Policy trends in cost
recovery and student access, Buffalo: SUNY at Buffalo Center for
Comparative and Global Studies in Education.
20. Ambani, M. and K. Birla (2001), Report on a Policy Framework for Reforms
in Education, Government of India, New Delhi.
21. Altbach, P. (2005) Academic corruption: The continuing challenge.
International Higher Education, (38), Winter.
22. Altbach, Philip G. and Patti McGill Peterson, eds., IIE Research Report
Number Twenty-nine. Maiti, Prasenjit (2001) “World view: Expansion
without funding”, The Times Higher Education Supplement, October 5,
2001.
417
23. Anand Sudarshan and Sandhya Subramanian: Private Sector’s Role in
Higher Education, India Infrastructure report in 2010, pp 178-184
24. Azhar, K (2003), Business Policy and strategic management, New Delhi,
Tata Mcgraw-Hill
25. Birnbaum, R. (2000). Management fads in higher education: San Francisco:
Jossey-Bass.
26. Bennell, P. y T. Pearce, 1998, “The internationalization of higher education:
exporting education to developing and transitional economies”, IDS
Working Paper 75, Institute of Development Studies, University of Sussex,
Brighton.
27. Balan J, (1990), “Private universities within the Argentinean higher
educational system: trends and prospects”, Higher Education Policy, Vol. 3,
No.2, pp.13-17
28. Bennet John W. (1993), Human ecology as human behaviour, New
Brunwick, NJ: Transition Publishers
29. Becker, G. (1964). The Human Capital: A theoretical and Empirical
Analysis with Special reference to Education. Columbia University Press.
30. Bertrand, O. (1998). Education and work. In. Education for the twenty-first
century: Issues and prospects. UNESCO Publishing. Paris. p 157-192
31. Béteille, André. (2005). Universities as Public Institutions, Economic and
Political weekly, July 30, 2005
32. Background page, United Nations Millennium Development Goals website,
retrieved 16 June 2013.
33. Bikas C. Sanyal and Michaela Martin(2006), Financing higher education:
International Perspectives Higher Education in the World.
34. Bhagwati, J. (2004). In Defense of globalization. Oxford University Press.
New Delhi.p208-218
35. Blaug, M.,R. Layard and M.Woodhall (1969) Causes of Graduate
Unemployment in India, Allen Lane. The Penguin Press.
418
36. Bray, M. (1998). Privatization of secondary education: issues and policy
implications. In: Education for the Twenty-first century: Issues and
prospects. UNESCO Publishing. Paris. p109-13
37. Brennan, J. (2004). The social role of the contemporarily university:
Contradictions, boundaries and change. Ten years on: Changing education
in a changing world. Centre of higher education research and information
(CHERI). Buckingham: The Open University Press.
38. Blaut, J.M. (1987), Diffusionism: A uniformitarian Critique, annals of the
Association of American Geographers 77: pp 33-47
39. Bruce S., Mark W.B. and Kristin A.C. (2004): Social acceptability in forest
range management, Chapter 14, Society and Natural Resources: A summary
of knowledge, Modern Litho Press, MO
40. Bhan, Sonja (2002) India: The Private Sector Emerges in Higher Education,
World Education News & Reviews (WENR), New York.
41. Boston College Center for International Higher Education (2006)
International Higher Education, published quarterly (journals),
Massachusetts.
42. Bhushan, Sudhanshu and Anupama Bhatnagar (2005) Country Paper –
India, Papers presented at eighth Session of the Regional Committee
Meeting for the Regional Convention on the Recognition of Studies,
Diplomas and Degrees in Higher Education in Asia and the Pacific.
43. Blondal, S., Field, S. and Girouard, N. (2002) Investment in human capital
through upper secondary and tertiary education. Paris: Organization for
Economic Co-operation and Development (OECD).
44. Brunsun, Mark (1992), Defining Social Acceptability in a forest management
context: problem statement and research approach, Paper presented at the
‘Workshop, :’Defining social acceptability of forestry and forestry practices
sponsored by the consortium for Social Values of natural resources, Kelso,
WA
419
45. Cameron K. S. and Quinn R. E. (1999), Diagnosing and changing
organizational culture: Based on the competing values framework. Reading,
MA: Addison-Wesley.
46. CABE Committee. (2005a). Report of the Central Advisory Board of
Education (CABE) Committee on Autonomy of Higher Education
Institutions. Government of India. June 2005.
47. CABE Committee. (2005b). Report of the Central Advisory Board of
Education (CABE) Committee on Financing of Higher and Technical
Education. Government of India. June 2005.
48. Carnoy, M. (1987). Higher Education and graduate employment in India: A
Summary of three case studies. IIEP Research Report No. 64. International
Institute for Educational Planning. Paris.
49. Chatterjee, Partha. (2002). Social Science Research Capacity in South Asia,
SSRC, New York, 2002
50. Clark, Nick (2006), Education in India, WES – World Education News &
Reviews (WENR), New York.
51. Carnoy, M. (1999), Globalization and Educational Reform: What Planners
Need to Know, Report No.63, International Institute of Educational Planning,
Paris.
52. CABE Committee. (2005a). Report of the Central Advisory Board of
Education, Committee on Autonomy of Higher Education Institutions.
Government of India. June 2005.
53. Central Advisory Board of Education (CABE) Committee Report on
Financing of Higher and Technical Education, June 2005.
54. Coglianese, Cary and David, Lazer. (2003). Management-Based Regulation:
Prescribing Private Management to Achieve Public Goals, Law and Society,
Volume 37 Issue 4 Page 691.
55. Castiglia, Beth, The Impact of Changing Culture in Higher Education on The
Person-Organization Fit, Job Satisfaction, and Organizational Commitment
of College Faculty,Academy of Educational Leadership Journal 10.2 (2006):
23-43
420
56. Deal T.E. and Kennedy A.A., (1982), Corporate Cultures and
Organizational Development: a competing values approach”, Research in
Organizational Change and Development, Vol. 5, pp,1-21
57. Denison D. R., (1990), Corporate Culture and Organizational effectiveness,
Wiley, New York, NY
58. Deshpande, R., Farley J.U, & Webster F.E. Jr (1993), “Corporate culture,
customer orientation, and innovativeness in Japanese firms: a quadrad
analysis”, Journal of Marketing, Vol. 57, pp 20-27
59. Dill D.D, (1982), The management of academic culture notes on the
management of meaning and social integration”, Higher Education, Vol. 11,
pp. 303-320.
60. Durham William H, (1991) Coevolution: Genes, culture and human
diversity. Stanford Ca: Stanford University Press
61. Delors, J. (1996). Learning the treasure within. Report to UNESCO of the
International Commission on Education for the Twenty-first Century.
UNSECO Publishing, Paris.
62. Dill, D. D. (1999) Academic Accountability and University Adaptation: The
Architecture of an Academic Learning Organization. Higher Education,
38(2): 127-154.
63. Didriksson, A. (2005) Recent tendencies in higher education financing: The
case of Mexico,IAU-Horizons, ibid.
64. Dill, David D. (2004). Transparency and quality in higher education
markets. Public Policy for Academic Quality. Available at:
www.unc.edu/ppaq.
65. El-Khawas, E. (2001). Accreditation in the USA: Origins, developments and
future prospects. International Institute for Educational Planning (IIEP).
Paris.
421
66. Field, J. (2000) Lifelong Learning and the New Educational Order, Stoke of
Trent: Trentham Books Giddens, A. (1990) Consequences of Modernity,
Cambridge: Polity.
67. Frank, R. (2001). Higher Education: the ultimate Winner-Taker –All Market
. In DevlinM and Meyerson J (eds.). Forum Futures: Exploring the future of
Higher Education, 2000 papers, San Francisco: Jossey Bass.
68. Freeman, R. B. (2005). Does globalization of the scientific / engineering
workforce threaten US economic leadership. NBER Working paper No.
11457
69. Fiery Walter, (1960), Man, mind and land, Glenoe IL: Free Press
70. Firdaus A., (2005), “Measuring Service Quality in Higher Education:
HEdPERF versus SERVPERF”, Marketing Intelligence and Planning, Vol.
24, No.1, 2006, pp.31-47
71. Gopal R. Knowledge is power The Times of India, 11 February, 2013,
Education Times, Page No. 02
72. Gopal R. as reported by Edu Buzz, Hindustan Times Media marketing
Initiative, 09-01-13
73. Gopal R. Towards an educated India: Games people play and making of
unemployed graduates, Monday Jan 20, 2014, the free press journal
74. Ginsberg, M.B.,(1991), Understanding Educational reforms in Global
context”:Economy, Ideology and the State”, Garland, New York, NY.
75. Garg, Suresh, Venkaiah, Puranik, Chambi and Panda, Santosh and others
(eds). (2006). Four Decades of Distance Education in India: Reflections on
Policy and Practice. Viva Books. New Delhi.
76. Garvin, D. (1980). Economics of Economic Behaviour. New York:
Academic Press.
77. Ghose, A. K. (2004). The employment Challenge in India. Economic and
Political Weekly November 27.
78. Gibbons, M. (1998). Higher Education Relevance in the 21st Century.
UNESCO World Conference on Higher Education. October 5-9.
422
79. Gupta, Ashwini and Datta, P.K. (2005). Indian innovation system -
perspective and challenges. In: National Innovation systems (NIS) in the
Asia Pacific Region. United nations ESCAP, New York
80. Gibbs,M., 1989; Inter linkages between services and other economic sectors’
in UnitedNations Centre on Transnational Corporations, Services and
Development: The Role of Foreign Direct Investment and Trade, UN, New
York, pp. 9-11 at p.10
81. Government of India (2002-2007), Tenth Five-year Plan: 2002-2007,
Planning Commission, New Delhi.
82. Government of India (1992), Programme of Action on the National
Education Policy, Ministry of Human Resource Development, New Delhi.
83. Guri-Rosenblit S., (1999).The agendas of distance teaching universities:
Moving from the margins to the centre stage of higher education, Higher
Education. : Volume 37, Number 3, p 281 - 293
84. Hofstede, G. (1994), Cultures and Organizations: Intercultural Cooperation
and its Importance for Survival, HarperCollins, London.
85. Hofstede, G., Neuijen, B., Ohayv, D. and Sanders, G. (1990),"Measuring
organizational cultures: a qualitative and quantitative study across 20
cases", Administrative Science Quarterly, Vol. 35, pp. 286-316.
86. Hofstede, G.(1980), Culture’s consequences: International Differences in
work related value, Sage Publications, Beverly Hills, CA
87. Held, D., McGrew, A., Goldblatt, D. and Perraton, J. (1999) Global
Transformations - politics, economics and culture, Cambridge: Polity Press.
88. H Rmarketer.com (2005), Looking for ways to boost your company’s bottom-
line results? Research shows big impact of positive, PRC Newswire
89. Hancock, Alan. (1998). Contemporary information and communication
technologies and education. In: Delors, Jacques. Education for the twenty-
first century: Issues and prospects. UNESCO Publishing. Paris.
423
90. Hanushek, E.A., and Rivkin, S.G. (2004). How to improve supply of high
quality teachers. In Ravitch D (ed.) Brooking Papers on Education Policy
2004 (pp. 7- 44). Washington DC: Brookings Institutional Press.
91. Hanushek, E.A.and Kimko, D.D. (2000). Schooling, labour force quality,
and the growth of nations. American Economic Review, 90(5), 1184-1208.
92. Hanushek, Eric A. (2005). Economic outcomes and school quality.
Education policy series 4. International Institute for Educational Planning.
93. Henrekson, M. and Rosenberg, N. (2001). Designing efficient institutions for
science based entrepreneurship: Lessons from the US and Sweden. Journal
of Technology transfer, 26(3), pp207-231.
94. Hamilton, N. (2000). The academic profession's leadership role in shared
governance. Liberal Education, 86, 3,12-18.
95. Higher Education in India, The Need for a Change , ICRIER, WORKING
PAPER NO. 179 , MAY 2006,
96. History of Education: Progress of Education in Ancient Indian Education
Review (www.google.com, retrieved in June 2013)
97. Ilon, L. (1994), “Structural Adjustment and Education; Adapting to a
Growing Global Market”, International Journal of Educational
Development, Vol.14, No.2, pp.95-108.
98. International Institute for Educational Planning (1996) Academic staff
management in higher education: Utilization of staff time and practical
exercises. IIEP, Paris.
99. Ilon, L. (1994), “Structural Adjustment and Education; Adapting to a
Growing Global Market”,International Journal of Educational Development,
Vol.14, No.2, pp.95-108.
100. Johnstone, B. (2004) The economics and politics of cost sharing in higher
education: comparative perspectives, Economics of Education Review.
101. J.M. Morrison et al, A supportive organizational culture for project
management in matrix organisations: A theoretical perspective, University
of Stellenbosch Business Sehool, PO Box 610, Bellville 7600, Republic of
South Africa
424
102. Jitendra Kumar Mishra, Naseem Abidi et al, Indian Higher Education:
Global Challenges and Local Issues :JBS Working Paper Series W.P. No.
JIITU/JBS/2008/01 © 2008 Jaypee Business School, Noida (U.P.), India
103. Jayaram, N. (2002). The fall of the Guru: the Decline of the Academic
Profession in India. In Philip G. Altbach (Ed.), The decline of the Guru: the
Academic Profession in Developing and middle income countries. (pp. 207-
239), Centre for International Higher Education., Boston College
104. Jayaram, N. (2006). National perspectives: India. In: Forest, James J. F. and
Altbach, Philip G. (eds.). International Handbook of Higher Education.
Springer. Dodrecht, The Netherlands.Johnstone, B. D. (2005). Higher
Educational Accessibility and Financial Viability
105. Jayaram, N. (2002). The fall of the Guru: The Decline of the Academic
Profession in India. In: Altbach P G (ed.), The decline of the Guru: the
Academic Profession in Developing and middle income countries. (pp. 207-
239), Centre for International Higher Education., Boston College. pp. 207-
239
106. Kennedy, A. A. 1982. Corporate culture: The rites and rituals of corporate
life. Reading, Mass.: Addison-Wesley.
107. Kakoyannis,C., Shindler B.,& Stankey G.H. (2001), Understanding the
social acceptability of natural recourse decision making process by using
knowledge based modeling approach. General Technical Report PNW-518,
Portland, OR, Us. Forest Sevice.
108. Keng-Sheng Ting (2011), Research on the influence of Organisation culture
and organizational restructuring on organizational performance: taking old
folks nursing organization in Taiwan as an example, The journal of Resource
and Adult Learning, Vol. 7, no. 2, pp 96-109.
109. Kim Cameron, (1978), Measuring organizational effectiveness in institutions
of higher education, Administrative Service quarterly. Vol. 23, pp 604-629
425
110. Kapur, Devesh and Mehta, Pratap Bhanu. (2004). Indian Higher Education
Reform: From Half-Baked Socialism to Half-Baked Capitalism. CID
Working Paper No. 108.Harvard University. Center for International
Development.
111. Kirp, D. L. (2003). Shakespeare, Einstein, and the Bottom Line: The
Marketing of Higher Education. Harvard University Press, Cambridge,
Massachusetts.
112. Knight, J. (2003). GATS, Trade and Higher Education - Perspectives 2003 –
Where are we? The observatory on borderless higher education. London
(UK).
113. Kim Cameron, A Process for Changing Organisational Culture, University
of Michigan Kim Cameron 48109 734-615-5247
114. Lawson S.B. (1982), “Why Restructure? An International survey of the roots
of Reform”, Journal of Education Policy”, Vol. 7, pp. 139-54
115. Levy, D. C. (2006). The private fit in the higher education landscape. In:
Forest, James J.F. and Altbach, Philip G. (eds.). International Handbook of
Higher Education. Springer. Dodrecht, The Netherlands.
116. MHRD. (2006). Annual Report. Ministry of Human Resource Development,
Department of Secondary and Higher education. Government of India. New
Delhi.
117. Mojumdar, Aunohita (2000) “Concern at budget plans to privatize
education”, The Times of India Online, December 28, 2000.
118. Martin J., and Siehl, C.(1983), Organization culture and counter culture an
east symbiosis, Review of Higher Education, Vol. 12, No. 2, pp 52-64
119. Masland A.T. (1985), “Organizational culture in the study of higher
education”, Review of Higher Education, Vol.59, No.1, pp 57-168.
120. Muya J. N. and Wesonga J.N., (2012), “The impact of organizational culture
on performance of educational institutions” International Journal of
Business and Social Science Vol.3, No.8, pp 211-217
426
121. Narsh Kumar & Khairuddin Idris, (2006), An examination of educational
institution’s knowledge performance, The Learning Organisation, vol 1, no.1
pp 96-116.
122. Nazir A. Nazir and Mushtaq, A. Lone , Validation of Denison’s Model of
Organisational Culture and Effectiveness in the Indian Context,VISION—
The Journal of Business Perspective l Vol. 12 l No. 1 l January–March 2008
123. NSSO (1998), Attending an Educational Institution in India: Its Level,
Nature and Cost, NSS52nd Round, July 1995-June 1996, NSSO,
Government of India.
124. Narayana, M.R. (2002) “India, Higher Education Expenses Borne by
Parents and Students.” Rao, K. Sreedhar (2002) “Universities set for 10 p.c.
fee hike” The Times of India Online, January 18, 2002.
125. NIEPA (2004) Foreign education providers in India, Directory, National
Institute of Educational Planning and Administration, New Delhi, India.
126. N. V. Varghese (2004) Private higher education in Africa, International
Institute for Educational Planning (IIEP), Paris (Mimeo).
127. NIEPA (2006). Report of the National seminar on Privatization and
commercialization of higher education. National Institute of Educational
Planning and Administration. New Delhi.
128. National Assessment and Accreditation Council (NAAC) (2004) Quality
Higher Education and Sustainable Development – NAAC Decennial Lectures
1994-2004, NAAC, Bangalore.
129. National Assessment and Accreditation Council (NAAC) (2004) Best
Practices in Higher Education – Report of the National Conference
Organized by NAAC, NAAC, Bangalore.
130. National Board of Accreditation (NBA) and All Indian Council for Technical
Education (2004) Manual of Accreditation (Revised Edition, January –
2004), NBA, New Delhi.
131. National Council for Teacher Education (NCTE) (2004) Indian Journal of
Teacher Education, Volume 1, Number 2, December, 2004, NCTE, New
Delhi.
427
132. National Office of Overseas Skills Recognition (NOOSR) (1996) Country
Education Profiles - India – A Comparative Study, (Second Edition),
Department of Employment, Education and Training, Australian
Government Publishing Service, Canberra.
133. Owalia, M.S. and Aspinwall E.M., (1997), “TQM in higher Education-a
review”, International Journal of quality and Reliability Management,
Vol.14, No. 49, pp.41-50
134. Pinto, M. (1984). Federalism and higher education: The Indian Experience.
Bombay, India, Orient Longman
135. Performance-Based management special interest group (PBM SIG)(2001),
The performance based management handbook: establishing an integrated
performance measurement system, USA, Oak Ridge Associated Universities
136. Patil, Jagannath (2006) Quality Assurance in Indian Higher Education,
WES – World Education News & Reviews (WENR), New York.
137. Powar, K.B. (2001) (Ed.) Internationalization of Higher Education,
Association of Indian Universities (AIU), New Delhi.
138. Pinto, M. (1984). Federalism and higher education: The India experience.
Bombay, India: Orient Longman.Pawan Agarwal,
139. Powar, K.B. (1990). The AIU at Seventy Five. University News, 37(12):1-2,
March 22, 1999
140. Parthasarathi, A. (2005). Fusion to improve higher education. The Hindu,
October 19, 2005.
141. Patel, I.G. (1998). Higher Education and Economic development In:
Economic Reform and Global Change. Macmillan. New Delhi.
142. Perkin, Harold. (2006). History of universities. In: Forest, James J. F. and
Altbach, Philip G. (eds.). International Handbook of Higher Education.
Springer. Dodrecht, The Netherlands. pp186-187
143. Pfeffer, J. (1981), "Management as symbolic action", in Cummings, L.L. and
Staw, B.M. (Eds), Research in Organisational Behaviour, JAI Press,
Greenwich, CT.
144. "Quality Improvement Programme In Higher Education Through - NAAC".
Dr. S.N.Pathan Director of Higher Educatio in Maharashtra - Intellectual
Book Bureau, 5, Narayan Nagar, Housangabad Road, Bhopal. 462 026
(2005)
428
145. Quinn, R.E. and Cameron, K.S. (1983) “Organizational life cycles and
shifting criteria of effectiveness.” Management Science, 29: 33-51.
146. Rani, Geetha, P. (2001) “Methods and Practices of Student Loan
Programmes in Developing and Developed Countries”,mimeo, National
Institute of Educational Planning and Administration, New Delhi.
147. Rani, Geetha. P. (2002), “Financing Higher Education in India during the
Post Reform Period: Focus on Access and Equity”,NIEPA Occasional
Paper, No.31, NIEPA, New Delhi,September, 2002.
148. Rani, Geetha, P. (2003), “Financing Education in India in the Economic
Reform Period: Focus on Intra-sectoral Allocation of Resources to
Education”, in Globalisation and Challengesof Education, (ed), NIEPA,
2003.
149. Rani Geetha P (2005) Economic Reforms and Financing Higher Education
in India National institute of educational planning and administration,
150. Rakesh Basant and Gitanjali Sen (2010), “Who participate in Higher
Education in India? Rethinking the role of affirmative action: Economic
Political Weekly, Vol XLV no. 39,pp 62-70
151. Richard Hansis (1995), The Social Acceptability of clear cutting in the
Pacific Northwest, Human Organization. Vol. 54, no.1 pp 95-101
152. Robbins S. P. (1986), Organizational Behavior: cases, concepts and
controversies. Prentice Hall, New Delhi
153. Report on The System of Education in India Nordic Recognition Information
Centres _ October 2006 Association of Indian Universities (AIU) (1996)
Handbook of Engineering Education, AIU, New Delhi.
154. Rokeach, Milton, (1973), The nature of Human values, New York, free
press.
155. Sanyal, B. C., Martin, M. and D’Antoni, S. (1996) Management of space:
Trends and international experiences. UNESCO, IIEP, Paris
156. Satish Tandon, (September 2005) Globalization: Impact on Education,
www.satishtandon.com/globaledu.html
157. Salmi, J. (1992), “Perspectives on the Financing of Higher
Education”,Higher Education Policy, Vol.5, No. 2, pp.13-19.
429
158. Sudha Rao &Dr. Mithilesh Kr Singh (2006) 150 years of University
Education in India: Challenges Ahead (www.google.com, retrieved on July
20130)
159. Salmi, J. (1992), “Perspectives on the Financing of Higher Education”,
Higher Education Policy, Vol.5, No. 2, pp.13-19.
160. Srivastava, D.K. and Tapas, K. Sen (1997), Government Subsidies in India,
National Institute of Public Finance and Policy, New Delhi.
161. Sanyal, B. C. and Martin, M. (2005) Financial management in higher
education: Issues and approaches. Paper presented at the workshop on
higher education management, organized by MTAC, Uganda, and the
International Institute for Educational Planning, Paris.
162. Sanyal, B. C. (1998) Diversification of sources and the role of privatization
in financing higher education in the Arab States region. International
Institute for Educational Planning, Paris.
163. Srivastava, D.K. and Tapas, K. Sen (1997), Government Subsidies in India,
National Institute of Public Finance and Policy, New Delhi.
164. Stewart, F. (1996), “Globalization and Education”, International Journal of
Educational Development, Vol.16, No.2, pp. 327-33.
165. "Survey: Higher Education, Economist", September 10th-16th, 2005. 4)
"Solution lies in Private Initiatives", Hindustan Times 20 Government of
India ministry of Education The role of government of India in education
ByJ.p. Naik November, 2005.
166. Scott, P. (1998), .Massification, Internationalization and Globalization., in P.
Scott (ed.),
167. Shen, Hong and Wenli Li. (2003). A Review of the Student Loan Scheme in
China. Bangkok, Thailand: UNESCO and Paris, France: International
Institute for Educational Planning.
168. Shindler B.A., Brunson M., et al, (2004), Social Acceptability in Forest and
Range Management, Published as Chapter 14 in Society and Natural
Resources: A Summary of Knowledge. Manfredo, J. Vaske, B. Bruyere, D.
Field, and P. Brown (eds.). Modern Litho Press: Jefferson, MO. 17 pages.
169. Saje Peter (2011), Organisational Culture and Communication based on the
work of Edgar H. Schein, M. Phil Thesis submitted to PONTIFICIA
UNIVERSITÀ DELLA SANTA CROCE, May 20011
430
170. Schein, E. (1996) “Culture: The missing concept in organizational studies.”
Administrative Science Quarterly, 41: 229-240.
171. Shindler B., & Toman E., (2003), Fuel reduction strategies in forest
communities: a longitudinal analysis of public support, journal of forestry,
101(7). pp 8-15
172. Sharmillah D. R., Siong C. Chong, & Hishamuddin I, (2010), International
Journal of Education Management, Vol.25, No.6, 2011, pp. 615-634
173. Schein E.H. (1985), “Coming to a new awareness of organizational
culture”, Slowan Management Review, Vol. 25, No.2, pp. 3-16
174. Schein E.H, (1992), Organization Culture and Leadership, 2nd
ed, Jossey
Bass, San Francisco, CA.
175. Sharma, Kavita A. (2003) 50 Years of University Grants Commission,
UniversityGrants Commission, New Delhi
176. Singh, Sutinder (1995) Indian Universities-On the Upswing, World
Education News & Reviews (WENR), Volume 8, Number 2, Spring 1995,
New York.
177. Srikantewara, Sri K. & Dr. Siddalinga Swamy (2004) Report of the
Taskforce on Higher Education – Shaping Education in Karnataka, 2004,
Government of Karnataka, Bangalore.
178. Stella, A (2001) Quality Assessment in Indian Higher Education: Issues of
Impact and Future Perspectives, Allied Publishers, New Delhi.
179. Stella, A. and Gnanam, A. (2002) Assuring Quality and Standards in Higher
Education: The contemporary Context and Concerns. Allied Publishers,
Bangalore.
180. Stella, Antony. (2002). External quality assurance in Indian higher
education: Case study of the National Assessment and Accreditation Council
(NAAC). International Institute for Educational Planning. Paris.
181. Schray, V. (2006). Assuring quality in higher education: Key issues and
questions for changing accreditation in the United States. Palgrave
Macmillan
182. Sweeney, Kallur, Smith, Maryak, Oliver and Stedman (1998) PIER World
Education Services – India – Special Report 1997 (1998), AACRAO and
NAFSA, Washington, DC.
431
183. Selected Educational Statistics 2004-2005 (as on September 2004), Ministry
of Human Resource Development Government of India (2007)
184. Schiefelbein, E. (2005) Dangerous expansion of higher education in Latin
America, IAU Horizons, 11(1), March, Paris.
185. Sachs, J. (2005), The end of poverty: Economic possibilities of our time,
Penguin Press, quoted in Aaron Clark, Alms for the Poor, Newsweek
International, 4 April, Newsweek Inc.
186. Sujata J.D.(2011), Impact of Globalization Indian Higher Education Sector
w.r.t. Selected Parameters: Doctoral Thesis, Submitted to D. Y. Patil
University, April 2011
187. Sanyal C. B. and Martin, M. (2006). Financing higher education:
International perspectives. In: GUNI Series on the Social Commitment of
Universities 1. 2006.
188. Singh, A. (2004). Challenges in Higher Education, Economic and Political
Weekly May 22, p2155-2158.
189. Spence, A Michael, 1973. "Job Market Signaling," The Quarterly Journal of
Economics, MIT Press, vol. 87(3), pages 355-74, August.
190. Teixeira, P., Jong Bloed, B., Dill, David and Amaral, A. (eds). (2004).
Markets in Higher Education: Rhetoric and Reality? Dordrecht, Boston,
London, Kluwer Academic Publishers, 2004 (Higher Education Dynamics
6).
191. Tilak, J. B. G. (2004). Absence of Policy and perspective in higher
education, Economic and Political Weekly May 22, p2159-2164.
192. Tilak, Jandhyala B.G. (1997) The dilemma of reforms in financing higher
education in India, Higher Education Policy, Volume 10, No. 1.
193. Times News Network (2001) Agitating AU student clinch victory on fee
hike, The Times of India Online, July 18th.
194. The Globalization of Higher Education, The Society for Research into
Higher Education/Open University Press, Buckingham, pp. 108-129.
195. The Economist. (2005a).Survey of Higher Education. 2005. September 10
The Economist. (2005b). Free Degrees to fly: Special Report on Higher
Education, February, 26.
432
196. Tilak, J. B. G. (2004) Higher education between the State and the market,
UNESCO Forum Colloquium on Research and Higher Education Policy, 1–3
December.
197. Tilak, J.B.G.(2001), The Challenging Concerns in Economics of Indian
Education in Perspectives in Education Vol. 17, 2001.
198. Tilak, J.B.G. (2001), “Education and Globalization: The Changing
Concerns in Economics of Indian Education, Editorial”,Perspectives in
Education,Vol.17, Special Issue, pp.5-8.
199. Tilak, Jandhyala B. G. (2004). Absence of Policy and perspective in higher
education, Economic and Political Weekly May 22, 2004 p2159-2164
200. Tilak, J.B.G. (1997), "Lessons from Cost Recovery in Education," in:
Marketising Education and Health in Developing Countries: Miracle or
Mirage? (ed.: C. Colclough). Oxford: Clarendon Press, pp. 63-89.
201. Tilak, J.B.G. (2001), “Education and Globalization: The Changing Concerns
in Economics of Indian Education, Editorial”, Perspectives in
Education,Vol.17, Special Issue, pp.5-8.
202. Tilak, J.B.G. and G. Rani (2002), “Changing Pattern of University Finances
in India”, Journal of Services Research, Vol.2, No.2, No. pp.5-46.
203. Thomas a Dyer and Peter G. Robinson, (2008) Exploring the Social
acceptability of skill-mix in dentistry, International Dental Journal, 58, pp
173-1
204. Trow, M. (1973). Problems in the transition of from elite to mass higher
education. Carnegie Commission on Higher Education. Berkeley. California:
McGraw-Hill.
205. UGC (1997), Report of the Pylee Committee on the Recommendations of the
Punnayya Committee Relating to Unit Cost of Higher Education and Other
Issues, University Grants Commission, New Delhi.
206. UGC (1999), Report of the Expert Committee Appointed by the University
Grants Commission to Review the Maintenance Grants Norms for Delhi
Colleges, University Grants Commission, New Delhi.
207. UGC (2000), Report of the Committee Constituted by UGC for ‘Formulation
of Revised FeeStructure in the central and Deemed Universities in India’,
University GrantsCommission, New Delhi.
433
208. UGC (1997), Report of the Pylee Committee on the Recommendations of the
Punnayya Committee Relating to Unit Cost of Higher Education and Other
Issues, University Grants Commission, New Delhi.
209. UGC. (2005a). Research Handbook: Towards nurturing research culture in
higher education institutions in India. University Grants Commission. New
Delhi.
210. UNESCO (1998) Higher education in the Twenty-first Century: Vision and
Action, Final Report, World Conference on Higher Education, UNESCO,
Paris,5-9, October, 1998.UNESCO (1999), Statistical Year Book, UNESCO,
Paris.
211. Vossensteyn, H. (2004) Fiscal stress: Worldwide trends in higher education
finance. NASFAA Journal of Student Financial Aid, 34 (1).
212. Williams D,R, and Patterson M.E. (1996), Employ management and eco
system management: perspective from environmental psychology and human
geography. Society and natural resources, 9(5). 507-621.
213. Winter G., Vogt C., & Fried J (2002, Fuel treatments as the wild land-urban
interface: common concerns in diverse regions, Journal of Forestry, 100(1),
15029.
214. Williams, G. (2004) ‘The changing political economy of higher education’.
In: Michael Shattock, Evgeni Kniazev,Nikolay Pelikhov et al.
(eds)Entrepreneurialism and the transformation of Russian
universities.UNESCO, International Institute for Educational Planning
(IIEP).
215. Wüstenhagen R., Wolsink m., et al., Social acceptance of renewable energy
innovation: An introduction to the concept, Energy Policy 2007; 35(5):
2683– 91.
216. Wallace, Joseph et al(1999), The relationship between organisational
culture, organisational climate and managerial values, The International
Journal of Public Sector Management 12.7 : 548-564.
217. World Bank (2003), A policy note on the grant-in-aid system in Indian
education. South Asia, Human Development Sector. Report No. 3.
November, 2003.
434
218. World-class universities and Chinese higher education reform. International
Higher Education, (39), Spring; Yan, F. and Levy, D. (2003) China’s new
private education law, International Higher Education, Spring.
219. Zammuto, R.F. and Krakoer, J.Y. (1991), “Qualitative and quantitative
studies of organizational culture”, in woodman, R.W. and Pasmore, W.A.
(Eds), research in Organizational Change and Development, Vol. 5, pp. 83-
114
220. Ziderman, A. and D. Albrecht (1995), Financing Universities in Developing
Countries, The Stanford Series on Education and Public Policy, The Falmer
Press, Washington, D.C.
435
Questionnaire for Faculties
-------------------------------------------------------------------------------------------------------------------------
Dear Sir/Madam,
I have enrolled for Ph. D program at Padmashree Dr D. Y. Patil University. As a part of my
research work I am collecting information from faculties about infrastructure, teaching,
academic environment and performance quality of various colleges. I will be grateful if you
could spare some valuable time to fill this questionnaire. I assure that the response will be
kept strictly confidential and will be used only for academic purpose.
Thank You for the support.
Name: Paulachan K. Joseph (Fr)
Designation: Asst Professor, Padmashree Dr D. Y. Patil University
Name of the Faculty: -------------------------------------------------------------------------------
City of Residence: ----------------------------------
Name of College: ---------------------------------------------
City of College: ---------------------------------- State: ------------------------------------
1. Age: <30 31- 40 41-50 >50
2. Gender: F M
3. Qualification
Post Graduation Doctorate
4. Designation in this institution:
Professor Associate Professor Asst Professor Others
5. Total Experience as a Faculty:
6. Less than 5 yrs 5 to 10 yrs More
than 10 yrs
6. Experience in this Institution:
7. Less than 5 yrs 5 to 10 yrs More than 10
yrs
7. Total Industrial Experience:
Less than 5 yrs 5 to 10 yrs More than 10 yrs
436
QUESTIONNAIRE
Organization Culture (Faculties)
A. Attitude towards students
Sr No. Question Strongly Disagree Disagree Agree
Strongly Agree
A1 The organization keeps the students at heart
A2 Students are treated respectfully by everyone
A3 The organization work culture promotes risk taking for the well being of the students
A 4 Service offered by various facilitating units viz. library, canteen, computer labs are students friendly.
B. Teaching Skill
Sr No. Question Strongly Disagree Disagree Agree
Strongly Agree
B1 The learning objectives of the studies are explained to students by the teachers.
B2 The assessment criteria for the studies are explained to students at the beginning the academic year.
B3 Teachers’ professional skills are up-to-date.
B4 Teachers get enough supportive feedback from the students.
B5 Student’s feedback on studies is considered with seriousness by the faculties.
B6 Students’ different backgrounds were taken into account in instruction.
C. Campus Placement Facility
Sr No Question Strongly Disagree Disagree Agree
Strongly Agree
C1 Institution provides campus placement facility to the deserving students.
C2 Good number of companies participates in campus placement drive.
C3 Reputed companies participate at
437
campus placement drive.
C4 Faculties provide softskill training and prepare for group discussions and personal interview.
C5 Package offer at campus placement is satisfactory.
D. Faculty Morale
Sr No. Question Strongly Disagree Disagree Agree
Strongly Agree
D1
The organization of the department enhance myability to be a successful faculty member
D2
The performance of the department chair of our college in administering the department is excellent
D3
There is appropriate number of full-time faculty to support our department's programs
D4 The overall rate of faculty morale of our college is very high
D5 The quality of current faculty that works in the department is rated very high
E. Organizational Glue
Sr No. Question Strongly Disagree Disagree Agree
Strongly Agree
E1
In my organization, people openly
discuss mistakes in order to learn from
them.
E2 In my organization, people identify
skills they need for future work tasks.
E3 In my organization, people help each
other learn.
E4 In my organization, people view
problems in their work as an
opportunity to learn.
E5
In my organization, people give
open and honest feedback to each
other.
F. Leadership Practices
Sr No. Question Strongly Disagree Disagree Agree
Strongly Agree
F1 I receive a proper mentoring in the organization
F2 I am pushed to innovations and risks
438
for the well being of the institute
F3 There is proper coordination in our work culture
F4
Everything we do in the institution are properly organized and efficiency oriented
F5 The leaders look for result oriented practices
F6 There is an aggressive focus on to the achievements
F7 There is proper communication net work within the organization
G. Professional Satisfaction
Sr. No. Question A B C D
G1 How would you characterize the head of your unit as a leader?
G2
How would you characterize the vision the head of your department has for the Institution?
G3
Do policies exist for recruiting and retaining faculty that reflect a sound plan for improving the quality of faculty?
G4 How does your department evaluate the teaching performance of faculty?
G5
To what degree do you find the means by which teaching performance is assessed in your department effective?
439
Questionnaire for General Public
------------------------------------------------------------------------------------------------------------------------
Dear Sir/Madam,
I have enrolled for Ph. D program at Padmashree Dr D.Y. Patil University. As a part of my
research work I am collecting information from the general public on their acceptability of
private self financing higher education institutions. I will be grateful if you could spare
some valuable time to fill this questionnaire. I assure that the response will be kept strictly
confidential and will be used only for academic purpose.
Thank You for the support.
Name: Paulachan K. Joseph
Designation: Asst. Professor, Padmashree Dr D.Y. Patil University
Name : -------------------------------------------------------------------------------
City of Residence: ----------------------------------
State: ------------------------------------
1. Age: <30 31 – 40 41 – 50 >50
2. Gender: F M
3. Qualification :
Uneducated Below
Xth
Non
graduate
Graduate Post
Graduate
Any other
4. Monthly Income:
Below 10,000/- Rs 10000/- to 25,000/- Rs. 25.000/-to
50,000/- Above Rs. 50000/- 5. Occupation
Service Business Professional Others
Social Acceptability (General Public)
440
A. Awareness
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
A1
I am aware of the presence of private self financing education institutions in our city
A2
I know many students who have passed out of private self financing education institutions
A3
I find the services of private self financing education institutions are essential for imparting higher education to the young
A4
Private self financing education institutions offer highly reputable academic programmes to its students
B. Trust and Confidence
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
B1
I have trust and confidence in the objectives and performance of private self financing education institutions
B2
The services of Private Self Financing Education Institutions are found useful and helpful to the state
B3
Private self financing education institutions undertake various social oriented projects to inculcate sense of concern to the society
C. Value for Money
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
C1 They absorb reasonable fees from the students to run the institutes.
C2
Private Self Financing Education Institutions are affordable to the vast majority of the community.
C3
Private Self Financing Education Institutions see that they return the value for money to the students
C4
Private Self Financing Education Institutions offer financial assistance to people who belong to the lower strata of the society
441
D. Quality of Service
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
D1
I understand that the Private Self Financing Education Institutions take greater efforts to keep quality of service
D2
I understand that Private self financing educational institutes are competing on quality.
D3
I find Private that Self Financing Education Institutions provide better infrastructure
D4
I find Private that Self Financing Education Institutions employ up to date technology in education
E. My Willingness to Cooperate
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
E1
I have recommended many students to Private Self Financing education Institutions
E2
Many students have passed out of Private Self Financing education Institutions, whom I have recommended
E3
I am willing to recommend students to Private Self Financing education Institutions
E4
I am willing to take admission for my ward/for myself in Private Self Financing education Institutions
442
Questionnaire for Students
-------------------------------------------------------------------------------------------------------------------------
Dear Sir/Madam,
I have enrolled for Ph. D program at Padmashree Dr D. Y. Patil University, NaviMumbai. As
a part of my research work I am collecting information from students about infrastructure,
teaching and performance quality of various Higher Education Institutions. I will be grateful
if you could spare some valuable time to fill this questionnaire. I assure that the response
will be kept strictly confidential and will be used only for academic purpose.
Thank You for the support.
Name: Paulachan K. Joseph (Fr)
Designation: Asst Professor, Padmashree Dr D. Y. Patil University
Name of the Student: -------------------------------------------------------------------------------
City of Residence: ----------------------------------
Name of College: ---------------------------------------------
City of College: ---------------------------------- State: ------------------------------------
5. Gender: -----------------
6. Level of present study:
First Year Second year Third year Final year
7. With whom do you stay?
College hostel Private Room sharing private room Parents
Paying Guest
8. Qualification of parent:
Father
Uneducated Below
Tenth
Non
graduate
Graduate Post
Graduate
Mother
6. Monthly income of family
Below Rs 25,000/- Rs 25,000/- to 50,000/- Above Rs
50,000/-
Students (Organizational Performance)
443
A. Infrastructure
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
A 1 The institution’s public areas are clean and pleasant.
A 2 The class rooms in the institution are clean and pleasant.
A3 Lighting in the study premises is appropriate.
A 4 There are enough signs boards at the institution for locating different sites.
A5 My belongings are safe and secure at the institution.
A6 There are enough parking arrangements for students’ vehicles.
A7 There is convenient transport facility for students
A8 There are sufficient toilet facilities in our campus
B. Library facility
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
B 1 The supply of books is sufficient.
B 2 The range of professional journals is sufficient.
B 3 The library’s opening hours suits me.
B 4 The library services are user friendly.
B 5 I can get help in using the library services when I need it.
C. Catering/Canteen facility
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
C 1 The canteen premises are neat and tidy
C 2 The canteen/catering services function well
C 3 The menu in the canteen is suitable for students.
C 4 The quality of food is good.
C 5 The opening hours of canteen are suitable for students.
D. Infrastructure
444
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
D 1 I am treated respectfully by the head of the Institute
D 2 I am treated respectfully by the teachers.
C 3 I am treated respectfully by the non-teaching staff.
D 4 Service at the study affairs office is friendly and fast.
D5 The communications within the organization are clear and prompt.
D 6 The institution responds to the requests of students promptly
D 7 It keeps the interests of the students at heart
D 8 The all prevailing attitude in the institution is positive
D 9 There is prompt and efficient dealing with complaints
E. Teaching Skill
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
E 1 The learning objectives of the course were explained to me.
E 2 The assessment criteria for the studies were explained to me at the beginning the academic year.
E 3 Teachers’ professional skills are up-to-date.
E4 I had the opportunity to give the teacher feedback on the teaching and my studies.
E 5 Work during the lessons and in workshops was efficient.
E 6 I got enough supportive feedback from the teacher.
E 7 I got the assessment results within a reasonable period of time.
E 8 Students’ different backgrounds were taken into account in instruction.
E9 There are excellent quality programmes in the institution
E 10 The education level and experience of the faculties are really high
F. Level of Good Will
Sr. No Question Strongly Disagree Agree Strongly
445
Disagree Agree
F 1 I feel my decision about studying in this college is correct.
F 2 I feel proud to be part of this educational institution.
F 3 I have a feeling of security in this campus
F 4 The college ambience helps to grow as a healthy individual
F 5 There is always a community feeling and sense of belongingness to the institution
F 6 I will recommend this college to my friends and relatives.
G. Opportunities for Extra Curricular Activities
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
G 1 I am happy at the opportunities for sports and cultural activities of this college.
G 2 I participate in cultural activities of the college.
G 3 I participate in sports activities of the college
G 4 I take active participation in various students committees.
G 5 The college provides opportunities to take part in programs organized by other institutions
G 6 There is a student union in the college to represent the student mind to the superiors
G 7 There is a counseling service provided for the students by the college
G 8 Feed Back is always received for improving the service performance in the institution
H. Placement Facility
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
H 1 Institution provides campus placement facility.
H 2 Good number of companies is participating in campus placement.
H 3 Reputed companies participate at campus placement.
H 4 Institution help us to prepare for GD
446
and PI
H 5 Package offer at campus placement is satisfactory.
I. Institutional Strength
Sr. No Question Strongly Disagree Disagree Agree
Strongly Agree
Sr No Question
I 1 I am happy at the educational growth that happens within me
I 2 The overall results of the institution are very good
I 3 The academic learning atmosphere in the campus promotes everyone to work
I 4 There is a result oriented approach imbibed by the student community
I 5 This organization provides a training that is helpful for my career development
I 6 The institution focuses on my personal development as well
I 7 There is 100% admission in our college every year
I 8 The institution shows a growth trend in terms of quality, academic programmes and excellence
447
Cronbach’s Alpha Analysis of
Pilot study conducted in Mumbai & Kochi
ORGANISATIONAL PERFORMANCE: MUMBAI
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.966 64
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha if
Item Deleted
A1 180.8200 612.634 .568 .965
A2 180.6000 625.636 .418 .966
A3 180.5200 622.596 .463 .966
A4 180.8100 614.943 .468 .966
A5 180.8000 617.657 .440 .966
A6 180.8100 628.479 .161 .967
A7 180.8600 621.475 .351 .966
A8 180.8300 613.738 .485 .966
B1 180.7800 615.365 .474 .966
B2 180.7000 610.010 .751 .965
B3 180.7400 609.265 .671 .965
B4 180.8100 609.772 .686 .965
B5 180.7300 613.957 .622 .965
C1 181.1200 612.996 .505 .966
C2 181.0500 615.402 .490 .966
C3 181.0100 616.353 .479 .966
C4 180.9400 614.784 .557 .965
448
C5 180.5700 630.005 .191 .966
D1 180.7100 616.471 .519 .965
D2 180.7600 618.992 .464 .966
D3 180.7500 614.917 .533 .965
D4 180.9600 606.019 .698 .965
D5 180.8900 611.432 .620 .965
D6 180.9200 611.165 .586 .965
D7 181.0000 607.919 .698 .965
D8 180.8900 609.957 .733 .965
D9 180.9100 606.305 .728 .965
E1 180.7800 610.719 .721 .965
E2 180.6100 620.281 .491 .966
E3 180.6700 616.506 .517 .965
E4 180.6200 622.985 .368 .966
E5 180.7300 617.492 .513 .965
E6 180.8000 614.727 .601 .965
E7 180.7500 618.391 .500 .966
E8 180.9200 617.832 .508 .966
E9 180.8900 608.483 .653 .965
E10 180.7700 607.654 .712 .965
F1 180.7500 611.119 .696 .965
F2 180.7300 607.169 .721 .965
F3 180.7600 611.942 .636 .965
F4 180.7300 614.462 .717 .965
F5 180.7100 613.299 .599 .965
F6 180.8400 604.419 .698 .965
G1 180.7100 618.955 .437 .966
G2 180.8400 625.105 .294 .966
G3 181.0200 622.787 .331 .966
G4 180.8600 625.596 .248 .966
G5 180.7200 620.891 .492 .966
G6 180.8100 613.610 .630 .965
G7 180.9600 613.574 .553 .965
G8 180.8700 612.114 .596 .965
H1 180.6900 616.115 .529 .965
H2 180.7900 617.905 .463 .966
H3 180.7100 614.168 .574 .965
H4 180.7900 617.097 .532 .965
H5 180.8400 613.469 .569 .965
I1 180.7300 618.644 .585 .965
I2 180.7800 615.891 .643 .965
I3 180.8300 613.435 .691 .965
I4 180.8900 617.978 .594 .965
449
I5 180.7900 617.117 .576 .965
I6 180.8400 612.196 .673 .965
I7 180.6500 625.442 .292 .966
I8 180.7400 615.326 .636 .965
Scale Statistics
Mean Variance Std. Deviation N of Items
183.6700 634.870 25.19662 64
ORGANISATION CULTURE: MUMBAI
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 60 100.0
Excludeda 0 .0
Total 60 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.922 37
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha if
Item Deleted
A1 106.1333 164.931 .549 .919
A2 106.1500 163.655 .591 .919
A3 106.3000 162.756 .578 .919
A4 106.1500 158.943 .742 .917
B1 105.7167 170.613 .111 .923
B2 105.7667 168.080 .228 .923
B3 106.1333 163.711 .478 .920
B4 106.1833 168.661 .268 .922
B5 106.1833 167.068 .382 .921
B6 106.2667 165.419 .409 .921
C1 105.8833 166.884 .313 .922
C2 106.1333 165.643 .355 .921
450
C3 106.1833 164.932 .362 .921
C4 106.2000 163.383 .599 .919
C5 106.1000 167.922 .329 .921
D1 106.1500 160.197 .670 .917
D2 106.2500 159.106 .746 .917
D3 106.0500 165.133 .556 .919
D4 106.2833 161.766 .680 .918
D5 106.0500 168.658 .288 .922
E1 106.5667 161.775 .570 .919
E2 106.3667 162.372 .599 .918
E3 106.1667 163.124 .557 .919
E4 106.2667 163.724 .561 .919
E5 106.4833 164.084 .467 .920
F1 106.4000 158.481 .740 .917
F2 106.5167 159.542 .728 .917
F3 106.1833 160.966 .743 .917
F4 106.2500 164.428 .587 .919
F5 106.1500 163.553 .568 .919
F6 106.2667 166.165 .400 .921
F7 106.1833 165.101 .524 .919
G1 106.0667 164.165 .383 .921
G2 105.7500 165.004 .286 .923
G3 106.2667 163.690 .260 .925
G4 105.9667 161.863 .387 .922
G5 106.0833 159.705 .514 .920
Scale Statistics
Mean Variance Std. Deviation N of Items
109.1167 172.783 13.14469 37
SOCIAL ACCEPTABILITY: MUMBAI
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. List wise deletion based on all variables in the procedure.
451
Reliability Statistics
Cronbach's Alpha N of Items
.763 19
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha if
Item Deleted
A1 46.9600 56.726 .228 .760
A2 47.0600 55.168 .329 .755
A3 47.1800 54.897 .340 .754
A4 47.4400 53.138 .464 .746
B1 47.4000 54.747 .429 .751
B2 47.2800 55.355 .339 .755
B3 47.3400 52.227 .558 .740
C1 47.8600 53.940 .322 .754
C2 47.9800 54.323 .300 .755
C3 47.6000 52.404 .523 .742
C4 48.0000 53.697 .492 .747
D1 47.4600 50.554 .695 .731
D2 46.9600 39.918 .274 .854
D3 47.4400 53.623 .489 .746
D4 47.4200 53.983 .426 .749
E1 47.6400 53.445 .465 .747
E2 47.7600 55.457 .328 .755
E3 47.4600 53.423 .579 .744
E4 47.5600 53.259 .461 .746
Scale Statistics
Mean Variance Std. Deviation N of Items
50.1000 58.475 7.64688 19
ORGANISATIONAL PERFORMANCE: KOCHI
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases Valid 100 100.0
Excludeda 0 .0
452
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.934 64
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha if
Item Deleted
A1 172.8100 276.458 .368 .933
A2 172.9600 276.221 .311 .934
A3 172.3700 279.771 .202 .934
A4 173.0500 281.927 .047 .935
A5 172.6000 276.081 .379 .933
A6 172.7500 272.876 .543 .932
A7 172.5900 285.517 -.147 .936
A8 172.4500 276.088 .376 .933
B1 172.7600 280.366 .086 .936
B2 172.7300 279.411 .235 .934
B3 172.7200 286.789 -.180 .937
B4 172.5800 279.398 .277 .934
B5 172.8000 281.818 .043 .936
C1 172.9200 281.953 .038 .936
C2 172.9700 270.130 .630 .932
C3 173.0600 276.582 .277 .934
C4 173.1900 274.681 .370 .933
C5 172.5800 282.509 .052 .935
D1 172.7100 279.885 .153 .935
D2 172.4100 278.386 .421 .933
D3 172.4700 274.514 .669 .932
D4 172.5700 272.328 .734 .932
D5 172.6900 275.570 .464 .933
D6 173.0600 275.128 .415 .933
D7 173.1100 268.887 .654 .931
D8 172.8200 272.594 .654 .932
D9 173.0200 267.899 .699 .931
E1 172.5400 273.928 .640 .932
E2 172.6500 274.149 .662 .932
E3 172.6700 275.637 .499 .933
E4 172.4900 274.576 .658 .932
E5 172.6500 277.624 .363 .933
E6 172.3600 285.445 -.139 .936
453
E7 172.4100 274.588 .436 .933
E8 172.7100 281.905 .077 .935
E9 173.0800 274.458 .412 .933
E10 172.9000 269.000 .537 .932
F1 172.7100 273.663 .565 .932
F2 172.7500 268.452 .785 .931
F3 172.6100 275.816 .604 .933
F4 172.8200 270.210 .742 .931
F5 172.7200 273.315 .603 .932
F6 172.8900 272.261 .555 .932
G1 173.4500 267.644 .551 .932
G2 173.2500 282.795 -.005 .937
G3 173.4100 279.638 .106 .936
G4 172.7400 273.366 .450 .933
G5 172.8800 269.541 .492 .933
G6 173.2800 270.830 .452 .933
G7 173.3800 274.258 .351 .934
G8 173.0300 265.181 .645 .931
H1 172.7500 272.169 .676 .932
H2 172.8800 274.309 .519 .933
H3 172.9000 271.687 .668 .932
H4 172.7600 271.437 .685 .932
H5 172.8800 273.400 .573 .932
I1 172.7700 270.361 .647 .932
I2 172.7300 267.896 .738 .931
I3 172.7400 273.932 .601 .932
I4 172.7500 272.210 .514 .932
I5 172.7400 272.013 .640 .932
I6 172.8600 269.091 .672 .931
I7 172.9100 270.850 .558 .932
I8 172.8500 272.331 .477 .933
Scale Statistics
Mean Variance Std. Deviation N of Items
175.5500 283.402 16.83453 64
ORGANISATIONAL CULTURE: KOCHI
Scale: ALL VARIABLES
454
Case Processing Summary
N %
Cases
Valid 30 100.0
Excludeda 0 .0
Total 30 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.954 37
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha if
Item Deleted
A1 113.3333 219.678 .593 .952
A2 113.3333 220.782 .534 .953
A3 113.4000 223.007 .610 .952
A4 113.1333 227.016 .197 .955
B1 112.8000 223.752 .487 .953
B2 112.9333 216.202 .689 .952
B3 113.0667 217.857 .640 .952
B4 113.0667 213.444 .865 .950
B5 112.9333 219.513 .788 .951
B6 113.2000 212.028 .784 .951
C1 113.0667 223.513 .572 .953
C2 113.6667 226.989 .290 .954
C3 113.5333 223.706 .365 .954
C4 113.4000 223.559 .356 .954
C5 113.4000 220.524 .506 .953
D1 113.2000 217.545 .726 .951
D2 113.3333 224.368 .291 .955
D3 113.2000 226.097 .331 .954
D4 113.2000 219.338 .533 .953
D5 113.2000 219.890 .596 .952
E1 113.3333 213.747 .699 .951
455
E2 113.0667 218.961 .701 .952
E3 112.9333 221.444 .655 .952
E4 113.2000 216.717 .658 .952
E5 113.2667 218.961 .701 .952
F1 113.4000 214.179 .723 .951
F2 113.2000 219.338 .627 .952
F3 113.2000 216.579 .665 .952
F4 113.2667 213.444 .865 .950
F5 113.3333 217.747 .598 .952
F6 113.4000 217.766 .562 .953
F7 113.5333 219.154 .732 .952
G1 112.9333 224.064 .475 .953
G2 112.8667 220.671 .371 .954
G3 113.2000 207.614 .756 .951
G4 112.5333 225.775 .447 .953
G5 112.9333 210.823 .843 .950
Scale Statistics
Mean Variance Std. Deviation N of Items
116.3333 231.402 15.21191 37
SOCIAL ACCEPTABILITY: KOCHI
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.916 19
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-
Total Correlation
Cronbach's Alpha if
Item Deleted
A1 44.3600 64.556 .212 .918
A2 44.4600 62.029 .409 .916
A3 44.6200 57.531 .586 .913
A4 44.6000 59.354 .592 .912
456
B1 44.8600 58.586 .640 .911
B2 44.7400 60.114 .597 .912
B3 44.8400 61.469 .384 .917
C1 45.5600 61.259 .471 .915
C2 45.3200 58.563 .669 .910
C3 45.0000 57.051 .684 .909
C4 45.2400 59.740 .593 .912
D1 44.5800 59.963 .605 .912
D2 44.7200 58.668 .595 .912
D3 44.7000 59.525 .602 .912
D4 44.7400 59.305 .557 .913
E1 45.2400 58.447 .695 .909
E2 45.1800 59.139 .623 .911
E3 44.9800 58.363 .670 .910
E4 45.1000 56.616 .719 .908
Scale Statistics
Mean Variance Std. Deviation N of Items
47.3800 65.975 8.12252 19