Monday, 6 July 2015

COMMENTS ON THE DRAFT IIM BILL

Comments  on the draft IIM Bill, 2015



 Reasons for the proposed law:

 It is not clear as to why this legislation is being proposed. Ostensibly, there are several reasons:

·      Government wishes to bring all the IIMs on a single format in respect of governance procedure, objectives, status, power to award degrees, role of the MHRD in policy and day-to-day affairs of the Institutes etc.

·      In particular, Govt. wishes to designate all the IIMs as Institutes of National Importance, give all of them the power to award degrees instead of mere diplomas, create a Council on the pattern of the IIT Council, increase the extent of Govt. control on the working of the Institutes, empower the Govt. to issue directives on matters of policy and so on.

                                                My comments:

This legislation appears to be unnecessary and counterproductive for the following reasons:

1.     The IIMs have steadfastly refused to subject themselves to the regulatory powers of the MHRD, AICTE and UGC. They are not prepared to sacrifice their autonomy for any reason whatsoever.

2.     The IIMs award diplomas, which are rated worldwide as superior to degrees awarded by other institutions. Their products are in great demand globally.

3.     Some IIMs have built reserves through charging of fees that the market will bear. The Govt wishes to make them not-for-profit entities, so that they have to depend entirely on the Govt. for their finances.

4.     The frontline business schools do not favour rigid, stratified, siloed structures or governance systems cast in stone. They wish to retain the ability to manage a quick-changing, volatile, uncertain, complex and ambiguous world with out-of-the-box solutions. The governance structures have to be more networked, flat, fluent, hybrid and agile.

5.     Under the proposed law, the various bodies are meant to be mainly composed of governmental officials or nominees. There is little scope for bringing experts from other countries, representatives of all the stakeholders like the alumni, the student bodies, industry, potential employers and independent experts.

6.     The Bill proposes to make it mandatory for the Institutes to follow the directions issued by the Govt. on matters of policy. The Institutes would like to believe that the reverse situation should prevail, that is, the Institutes should be in a position to advise the Govt. on what policies to pursue.

7.     It is a sound idea to have a mechanism for sharing of experiences and practices among the various Institutes, but the Coordination forum suggested in the Bill is likely to be a bureaucratic institution stuffed with Govt. nominees.


Conclusion:

On the whole there does not appear to be a need to alter the status quo .It is not necessary that uniformity would inexorably lead to better functioning. Governmental controls are notorious for their enervating influence on institutions. Management education is hardly a field suitable for rigid, petrified, bureaucratic control and command mechanisms.

The Review Committee on AICTE (2015)  has in a report submitted recently to the Government suggested that the AICTE should be truly autonomous and should be declared as a Constitutional Authority. According to the AICTE Act 1987, management is one of the fields listed under the generic title of technical education. In the field of education, we have to generally move towards greater autonomy. The IIM Bill, 2015 seeks to move in the contrary direction and cannot, therefore, be supported in its present form.

If at all some kind of framework is to be prescribed, it should emerge out of a consensus among the IIMs themselves. For this purpose, detailed consultations would be imperative. An IIM Act should be drafted, if it is deemed necessary, by the IIMs themselves. It should provide for self-regulation rather than an outside control mechanism.


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