6) Critically analyse the provisions of the Indian Institutes of Management Bill and comment if objections raised against certain provisions of this Bill have any merit.

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TopicIssues relating to development and management of Social Sector/Services relating to Education, Human Resources.

6) Critically analyse the provisions of the Indian Institutes of Management Bill and comment if objections raised against certain provisions of this Bill have any merit. (200 Words)

The Hindu

  • jyant gautam

    Kindly review

  • jyant gautam

    Kindly review….

    • El Magick

      I think you could think about the structure again. It may make sense to directly link your provisions sighted to the critique/praise you have to offer and then make an overall assessment.

      At the moment you’ve quoted more provisions than assessment. Your first and second points of the Merits part seem to be in direct opposition.

      The question also has two parts: to critically assess the Bill and to “comment” on the objections.

      Keep writing! You’ve got all the basic ideas in place and with practice will sharpen them.

      • jyant gautam

        yeah..merit part should be balanced..infact i read the positives of this bill in today’s newspaper…btw thnks fr reviewing !!

  • Aj

    The IIM bill rests on certain pillars which are – One, allow IIMs to give degrees rather than diploma or certificates. Second, Infuse accountability into their functioning. Third, Making sure the IIMs are run democratically with all features of an inclusive and accountable institution. Fourth, Match the institutes with foreign standards. To achieve these broad objectives, the government has designed certain provisions which are :

    1) IIMs will be deemed institutes of national importance allowing them to confer degrees.
    2) Tenure of board members is fixed at 6 years.
    3) A coordination council to set policy objectives and have oversight over their functioning.
    4) Limiting the number of board members and describing their composition.
    5) Government approval regarding any major policy decision.

    These provisions have been criticised by certain sections of reducing institutions autonomy and as a move for government interference. To analyse these criticisms and the provisions we need to be clear about the objective in hand. Indian institutes must be among the top and reach global standards.with that objective we shall analyse.

    The provisions provide accountability mechanisms which are absent now. Second, they are in line with foreign practices. Third, certain provisions are definitely over reaching such as compulsory government approval, that has to be modified. Fourth, no provision regarding involving students or parents or the civil society. Fifth, the accountability mechanism is not transparent. A rating mechanism would allow even common people to evaluate.

    IIMs are institutions of India’s pride. They have to be given autonomy as well as be accountable. The bill seeks to achieve it. However, some more transparency and involvement of students and civil society should have been included.

    • El Magick

      You’ve swept the question for four! It will now pitch short! Haha!

      I think you’ve got the entire basket of points. However, this is what I am debating: is it better to chuck in more points or to develop the points better (considering the word limit). For example, your second last paragraph is succinct but assumes the readers pre-existing knowledge of the bill and the situation with the IIMs.

      I wonder what your thoughts are in re points vs. development of points. Thanks!

      • Ankith

        i am in for development of points, as there are unlimited points and words if you are willing to write without any word limit. So, the quality matters. It is I feel better to cover major points in detail

  • Ankith

    IIM Bill seek to enhance the reputation of these institutes in the international juncture by according them the status of Institutes of national importance and confer them the power to award degrees in place of diplomas and FPMs.

    The bill also seeks to bring in more accountability by regulating the functioning of board which inturn regulate the major policy decisions of and IIM. Also, the bill places certain restrictions on the composition of board on the traditional lines like appointing the Chairman, involving alumni, faculty, industry, women etc.

    However, there is a mixed reaction on the Bill from the strong IIMs and their alumni claiming that this bill would affect the autonomy, there seems to be few genuine concerns in certain areas like:

    1. Govt.’s say in the salaries of the staff, fee structure-Faculty of IIMs have a good pay structure this had attracted huge talent base towards the IIMs, any regulations on these would render their status. IIMs are financially independent because of the heavy fee they charge on students which is justifiable on the ground that the packages received by students.

    2. IIMs work on the principle of PPP where in the industry has a prominent say in it’s affairs, just like the case of ISB. Prominence of the industry involvement might be affected with increase in government’s role.

    3. Micromanagement of the institute through the board is possible with the Bill in it’s current form. As some secretaries sitting in the ministry without the technical knowledge might decide the affairs of an IIM through the board.

    Undoubtedly IIMs are not same as the other universities in India which have least autonomy, Their international merit should not be affected and they should be allowed to work independently with the Government regulating them in a broader policy framework.

    • El Magick

      Ankith -some good points. I wonder if they can be linked together better? Also, note that the question has two parts with two distinct approaches demanded!

      I’d also like your views on the question posted to Aj, below.

  • El Magick

    The recent IIM Bill brings into focus four important issues:
    (i) The need for standardisation of degrees;
    (ii) To promote and ensure accountability;
    (iii) Making boards more effective in their functioning and enhancing governance;
    (iv) the government’s role in institutions of excellence.

    The first point can only be beneficial – in no way does it deprive the IIMs of their powers. Rather, it strenghtens their output through institutionalisation.

    The question of accountability is more vexing. Should accountability be through self-moderation? The CAG and RC Bhargava Committee report seems to suggest that self-moderation and accountability is not a strong suit of the current IIM structure. In such a situation, institutionalising the methods and processes of accountability is sensible. However, the content of the processes has to be deliberated. The government should not don the role of sole arbiter.

    The question of boards and their effectiveness is linked to accounatibility as well as governance. What is of importance is to have people on the board with a vested interest in the success and welfare of the IIMs rather than token members. Alumnis, Industry leaders, civil society members, and even Government officials can be made members. More importantly, strong norms need to be developed. The bill makes a step in this direction but provisions such as regulations requiring Government approval hint at overkill.

    Fourth, the Government has an interest in the continued excellence of institutions such as IIM. In exhibiting its interest, it should not overreach in such a manner as to hamper the independence and free-thinking that has fostered such growth. At the same time, the government has a role to play in terms of ensuring checks and balances and equity in access to such institutions.

    The position of the IIMs can be understood in terms of the lack of dialogue on the changes required. A bill thrust on them is likely to propose adverse reaction. It did. A balanced review above would indicate some merit on both the government and IIMs side. The key, then, is to arrive at a balance that clearly demarcates spheres of institutional autonomy, responsibility and accountability. It is a debate that must be had and that cannot be had only one way.

    • Insights-Review

      366 words!

      Please trim this answer till aatleast 220 words and post it again.

      This is for your own good. No matter how much knowledge one has, if he is not able to write it within 7 minutes, and within the word-limit, there is no use.

      The art of answer-formulation lies in answering in a compact way. Please start practicing that.

      Thank you. 🙂

      • El Magick

        Thanks, Insights-Review.

        Have managed to trim it down to 268 words without losing much on content. I think I can trim it down even more with practice.

        I should also take 30 seconds to plot the answer in detail.

        Thank you for the nudge.

  • raghu100

    Guys I am very new plz review ma answer!plz help me to improve

  • Pushkar Choudhary

    Recent IIM bill has led to huge hue and cry among present IIM’s and their alumnus worldwide.According to them the bill in its present form seems to infringe their autonomy,ability to innovate and adapt to ever changing needs of growing market.
    Though undergoing a lot of resentment since its inception in public domain ,it raises some serious concerns about the present functioning of IIMs:
    1)Lack of accountability:As per RC Bhargava committee report, lack of accountability of decision making bodies of institutes are common.It seriously hampers timeliness and quality of decision.
    2)No fixed tenure:Having fixed tenure is the basic axiom of good governance which their board members are lacking.
    3)Irregular composition:Erratic composition of board members often led to vested interest and tainted appointment of chairman.
    4)Auditors: IIMs still don’t have a regular auditory body
    5)Degrees:Since IIMs don’t offer full time MBA degree,this bill envisages to convert it into full time degree
    However higher education is state’s obligation,state’s aid should not be confused with state control.State should stay at an arm’s length with institutes in academic domain and IIMs should not fear because there is no threat to their autonomy,only an attempt to introduce a modicum of accountability is made through this bill.

    • Pushkar Choudhary

      Plzz review guys

  • Sourav Das

    The latest IIM BILL seeks MHRD approval regarding the renumeration of faculties,student’s academic fees and inclusion of certain programmes under the flagship of IIM’s academic curriculum .It also suggested a govt nominated IIM council consist of chairperson (MHRD minister itself) and other members which includes nominated representatives from Union Govt and AICTE ,eminent persons from academic and corporate sector,all IIM directors and chairmen of UGC.
    As far as the Govt decision concerned it is based on the R.C.Bhargava committee report which opined that currently IIM is enjoying certain privileges over other academic institution regarding financial autonomy.Although government decision has drawn some dissents over the issue but if we look into deep IIM need not really worry about it.This bill will certainly not encroach upon IIM credibility as an academic institution. The resentment is based on a certain clause 3(k) which seek govt. intervention in decision making.Although nowadays Govt is shedding its control over various institution but in case of academic institution like IIM certain control of government can be tolerated.IIM from the beginning is an autonomous body mostly not dependent on government funding if there prevails government control to a certain extent , it will not adversely affect its function.The reasons are follows,
    1.In India the fees for higher education is increasingly growing so despite of having merit some deserving poor students are always got deprived of getting admitted in first class B school like IIM.
    2.Secondly,corruption can creep into this prestigious institution if government leave all the powers of controls merely on the hand of private stakeholders.
    3.Thirdly,there are several new IIM has been built up various part of country.Their performance is still lagging behind those old IIMs (such as IIM Bangalore,Calcutta,Ahmedabad).Government regulation will help them to perform upto the mark.
    But one thing should keep in mind IIM need not bother to the provision of the bill until or unless it distorts its academic characteristics which has helped it to flourish till the year.In our country there are several Government universities but they are still failed to achieve any global recognition just because of over political bargaining to gain control over them,.Government can put control over IIM but this control should be balanced not in the cost of its ethical aim of providing quality education.

    • Sourav Das

      Friends,Please review my answer.Pleasee

  • blue

    It will be very much helpful to fellow aspirants if u guys mention different source of your answer making (other than newspaper)

    Thanks in adavance

  • pk

    How to post answer

  • SWbor

    The proposed IIM bills has the following provisions.
    1.To grant a statutory status to the thirteen IIMs and declare them as the institutes of national importance for granting degrees rather than diplomas.
    2.Any changes in the curriculum,fees,course ,remuneration would require the Centre ‘s approval.
    3.The director will be centrally appointed.
    The major criticisms are
    1. The top IIMs like IIMA, IIMB would be brought to the same level as other IIMs which are not performing at par with these.
    2.Any changes with fees,curriculum requiring the permission of Center might reduce the autonomy of the IIMs which uptill now managed themselves,and might reduce innovation.
    3.A centrally appointed director would make him accountable to the Central Government rather then the board.
    The provisions of the bill like a centrally appointed director,prior approval of the Government in case of curriculum change needs to be looked at.But since the IIMs run from the exchequers funds there is a need to address the accountability issues and have a transparent appointment system for its boards.

  • Kindle

    Provisions of IIM Bill 2015 are :

    1. Statutory status to all IIMs and declaring them as institutes of national importance. This will help them in giving degrees instead of diplomas as is the practice currently.

    2. All administrative matters and academic matters such as fees, curriculum, salary etc. will require approval of Union.

    3. The director will be appointed by the Centre.

    Objections raised against the Bill:

    1. Aimed at taking away the autonomy of IIMs.

    2. Will lead to sub-standardisation of education.

    Extent of Merit in such objections and why there was a need for a bill :

    1. At present IIMs have not only academic autonomy but also financial & operational autonomy. This means they want the freedom not just to implement the policies but also framing them even in matters of Governance.

    2. They want all the appointments and related decisions to be done by the Board of Governors without any say of the Govt. in it. In 2004 a CAG report on IIM finances had remarked that they are trying to assume ultra vires authority which is not guaranteed to them according to MoA under which they are governed.

    3. IIMs have not had fixed tenures for board members; the IIM Bill limits the terms of board members to a maximum of six years.

    4. IIMA has not thought it necessary to change its statutory auditors for 50 years; the IIM Bill now has mandated for rotating the statutory auditor every four years.

    5. IIMs lack serious competition. Board members, including the chairperson, come and go and have little stake in the institutions.
    IIM boards have not set performance norms for directors. Under these conditions, it’s unrealistic to expect that the boards can enforce accountability.
    It’s important for the dominant stakeholder and promoter, GOI, to keep a watch. This will require monitoring of decisions, not just outcomes. It will be especially required if the IIMs come to be covered by an Act of Parliament as the government itself is accountable to Parliament.