B-School Autonomy

• Board Driven Management at IIMs
• IIMs will grant Degrees and Doctorates instead of Diplomas and Fellowships
• Periodic Independent Review of IIMs performance
• Complete Autonomy to IIMs
• CAG will audit IIMs accounts
• Diluted Coordination Forum will mitigate the risk of political hijack of IIMs

“We need to welcome the Cabinets decision on the Bill.  I understand that there is no outward vulnerability to the autonomy of the IIMs” – Janat Shah, Director, IIM Udaipur 

“The Bill seems to have addressed the IIMs’ concern about autonomy while ensuring accountability” – Ashish Nanda, Director, IIM Ahmedabad 

“IIM Bill, which was approved by the Cabinet, has been prepared with the aim of furthering excellence in these premier institutions” – Narendra Modi, Prime Minister, India 

All of the above quotes refer to the Cabinets approving of the Bill on making the Indian Institutes of Management (IIM), autonomous.  Subsequent to the passing of the Bill, among other significant changes, the IIMs will be allowed to grant Degrees and Doctorates, instead of Diplomas and Fellowships.

This has been a historic step that now allows IIMs to grant Degrees and Doctorates, gives administrative independence, and freedom in recruitment as well as daily operational functioning.

Greater autonomy has been in demand by the IIMs for years now – “the IIM Bill 2017 will grant complete autonomy to the IIMs, with adequate autonomy” said a statement issued by the Cabinet after their meeting in New Delhi.  This will ensure that the IIMs are Board driven, where the Board will select the Chairperson as well as the Director.

Currently, the functioning involves the Board sending across their recommendations on appointments and matters of functioning referred to the Board, to the Government for due approvals – the Government may accept or reject proposals.  Now such will be decided by the Board itself.

Earlier, at the time of the first draft of the Bill, there was much protest by the IIMs and JJ Irani, Director IIM Lucknow had said that if the Bill is approved in its then current form, then there will be a revolt in the IIM system.         Irani and other key stakeholders in the IIMs had figured that in the draft form there were huge concerns for autonomy for the IIMs.

Further on, after intervention by the PMO, the HRD Ministry made suggested amendments to the draft, based on suggestions by the IIMs.  Significant dispute laden issues, viz. appointment of Directors, composition of the Board, appointment of the Chairperson, Fees, etc. will now be decided by the Board, without much interference by the Ministry.

The Bill, which contains a provision for “Coordination Forum of IIMs” has its own concerns, which could allow the HRD Ministry to control the IIMs, which are a nurturing ground for future Corporate leaders.  The Bill is also silent on faculty recruitments and reservations towards the same.  Javdekar, HRD Minister, had mentioned the reservations system for faculty appointment earlier in September last years.

The Coordination Forum, however will have limited powers and the Ministry will not be at its helm – the forum will operate more like an advisory body with 33 members and its Chairperson will be selected by a search cum selection committee.  Likewise, the governing Board of an IIM will have 15 members, including 3 Women members and five from the Alumni Committee.

The Bill grants statutory status to IIMs, making them institutions of National importance.  This move will give IIMs international repute, specially the newer entrants to the chain of IIMs across the country.

Expected to be tabled in the upcoming Budget session in the Parliament, the Bill will provide for a periodic review of the IIMs performance, by independent agencies, and the Annual Report of the IIMs will be put forth in the Parliament, for Audit by the Comptroller and Auditor Generals Office.

Source Courtesy: LiveMint and other Media Reports