Wednesday, January 20, 2016

A perfect fit between personality and the selection of a specialization are essential for an individual in giving his/her best to the profession.

A career in management has become of prime importance over the last few years. Management itself is a very wide discipline; hence students who choose management as a career step into the discipline with a question as to which major specialization to choose. This choice is influenced by various factors, such as stereotypes for occupations, an individual’s skills and abilities, the job market for a particular specialization, the influence of family members, the personality of individuals and many others. The influencing factors are external as well as internal to every individual.

Specialization should be selected on the basis of personality types. A right match between personality and specialization selection may help an individual for giving his/her best to the profession. A perfect fit between the personality and the business major of a student has implications for both the institution and the student. An article from Paradigm highlights the importance of measuring the compatibility of students’ measured personalities with their desired work environment, as the career of an individual depends on the academic major they choose.

For the institution, it will be helpful for providing and creating a favourable environment for the personality development of an individual along with imparting the basic and proper knowledge of a course. This will help students in self-improvement and self-learning and to adapt to the changing realities of a modern market. As personality is an integral part of an individual, it will help them decide future career path.

The article also suggest that proper study on the subject can have implications for academicians, trainers and career counsellors. They can identify the personality trait exhibited by an individual and guide them in choosing their career path. It will also be helpful for organizations for identifying the person–job fit. Choosing the specialization matching a personality type will help students know their own pace, inclination or capability to finish the course they enrol in. It will also help in designing various career guidance programmes. This can be incorporated in academic counselling and career planning decisions as well.

Tuesday, January 19, 2016

Whether and how the Financial Performance of family companies is better than the non-family companies ?

 The economic backdrop of most nations remains dominated by family businesses. Family control is common in publicly traded Indian companies. Such controlling families often hold large shareholdings and for the most part have representation at the top management level as well as on the board. Consequently, an overarching question that emerges is whether and how family ownership, management, and governance affect corporate performance.

An article from Vikalpa attempts to discern the relationship between family involvement in business (FIB) and financial performance (FP) of companies. In addition, it also attempts has to examine the difference in accounting and market measures of FP for family companies (FCs) vis-à-vis non-family companies (NFCs).

The article presents results of S&P BSE 500 Index that confirm that FCs are a predominant form over a number of industries in a large sample, In addition, founding families are often involved in the actual management of the companies. Financial Performance is higher for Family Companies vis-à-vis Non-Family Companies and based on the market performance measure, Family Companies appears to be better performers with higher outside board representations. On further analysis of the profile of independent directors, it has been observed that they had a diverse background and expertise. The impact of firm size and unaffiliated block holdings on Financial Performance was found to be significantly negative.

Family firms fare better on both accounting and market performance measures. Their strong support network system, shared family aspirations and values, as well as long-term commitment to the business make them more decisive than non-family firms.

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Wednesday, January 06, 2016

The philanthropy and charity motives of investing in higher education institutions have been replaced with profit and commercial interests!

The Indian higher education sector has undergone massive expansion, though not uniformly, during the six and half decades following independence. There were only 0.26 million students in higher education in 750 colleges and 30 universities in India in 1950–1951. This has increased to about 20.29 million students in 35.5 thousand colleges and 700 universities in 2012–2013. With this, India has grown into one of the largest systems of higher education in the world.

The overwhelming increase in the higher education institutions (particularly after the post-liberalization period) is mainly due to the intervention of the private sector. Considering the inability of the government to invest further in technical education, and given the growing demand for engineering graduates, opening up of institutions became an inevitable choice.  The enrolment in higher education in India went up by four times, whereas in engineering education it increased by nine times during this period.

But there is a significant change in the character of private partners in higher and technical education in India. In the 1950s and the 1960s, people with some money used to donate their money to public institutions or set up philanthropy-based private schools and colleges; today, though, those with even a small fraction of that money prefer to set up a private, self-financing college or university. The investment in higher education institutions is found to be the most rewarding, yielding quick and very high pay-offs, with minimum risk. The philanthropy and charity motives of investing in higher education have been replaced with profit and commercial interests.

Many private institutions in technical and engineering education though described de jure as charitable or not-for-profit institutions, are de facto profit-making institutions. These institutions have largely contributed to vulgar forms of commercialization in technical education in India. The unregulated and unbalanced growth of the private sector in engineering education has resulted in the decline in the quality of teaching and learning imparted in these institutions.

With the current pro-private policies and programmes, the technical education sector in India is drastically being transformed into a commercial business activity. Privatization and commercialization of technical education being two sides of the same coin, it is difficult to distinguish between these two either theoretically or empirically. Both are based on the same principle of making and maximizing profits, and thus, the privatization will ultimately lead to commercialization.

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Revisiting Urban Property in India!

Over the last three decades, processes of economic transformation and market liberalization have had far-reaching consequences for property regimes across the world. These transformations are felt particularly strongly in urban areas, where land and housing have been turned into real estate.  Property has enhanced both monetary gains and social status for those individuals and communities benefiting from post-liberalization ownership regimes. ‘Real estate development and speculation in real estate products have become a major means for wealth accumulation by propertied people in many cities’. While wealth accumulation per se is neither new nor necessarily problematic, the accumulation of capital through real estate enabled by liberalization policies has certainly not benefitted all social groups in equal measure. Even
though marginalized groups are equally exposed to glowing media representations of urban renewal and homeownership, many continue to be subjected to evictions and exclusions, struggle to claim basic rights as citizens and can only dream of participating in the emerging consumer culture.

Access the Special Issue on Revisiting Urban Property in India from the Journal of South Asian Development— Free for a limited Period!