Management Education in Nepal: Prospects and Challenges

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Management Education in Nepal
Prospects and Challenges

• - Bijay KC
• Professor
• South Asian Institute of Management

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

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GLOBAL TREND IN HIGHER EDUCATION

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

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GLOBAL TREND IN HIGHER EDUCATION

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

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GLOBAL TREND IN HIGHER EDUCATION

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

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TREND OF HIGHER EDUCATION IN NEPAL

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

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MAJOR STRUCTURAL CHANGES

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

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MAJOR STRUCTURAL CHANGES

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

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Development of Management Education

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

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Development of Management Education

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

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Development of Management Education

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

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Development of Management Education

• Kathmandu University in 1991
• Purbanchal University in 1995
• Pokhara University in 1996.
• Lumbini Boudha University in 2005

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Developing a Program for Management Education

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

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Potential stages of manager's organizational
career

• entry level
• first supervisory assignment
• manager of a particular functional unit
• general manager manager of a set different
  functional units.
• Executive level

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Forces Affecting Management Education

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

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Forces Affecting Management Education

• Integration with Global Economy
• Unstable political regime
• Ambiguous legal framework
• Weak governance

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Future Trend

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

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Future Trend

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

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Future Trend

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

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Future Trend

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

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Demand and Supply A Gap

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

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Problems

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

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Management Education in Nepal The Road Ahead

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

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Support from NRN

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

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Conclusion

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

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Conclusion

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

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THANK YOU