Environmental changes and organizational response in financing of two management institutes in Ahmedabad and Gandhinagar districts

Abstract

Economic reform packages were introduced in India in the beginning of 1991 as part of globalization. The continuing macro-economic reforms imply profound changes in the relationship between the government and higher education. The higher education sector is expanding rapidly with the involvement of non-government institutions. The literature review has been carried out on environment changes in higher education in India and worldwide, the current scenario and the overall regulatory system in the context of higher education in India and the financing of higher education institutes. There is a need for research, which would interest academicians, research scholars, corporates, government and not-for-profit organizations on the study of the environmental changes and financing of the higher education sector. This dissertation is a study of two management institutes in Ahmedabad and Gandhinagar districts over a period of 10 years and how they responded to the changes in the environment and in the higher education sector. The questions for the research study are: (i) Do the environment changes, both external and internal, affect the financing pattern of higher education institutes in management and (ii) Do these responses vary depending on whether the higher education institute in management is autonomous or part of a university system. The research methodology of the study is based on the case study approach, exploratory research design and qualitative analysis of the case data.The primary survey method was used to collect data on the two educational institutes in management selected for the case study. The period of study was ten years, i.e., from 2001-02 to 2010-11. The study identifies major environmental dimensions in higher education such as the macro environment, the micro environment and globalisation. The macro environment includes the political-legal, the economic, the socio-cultural and the technological environment. The micro environment includes the students, the industries and different interest groups.