AICTE 3-Tier Categorization of B-schools: A Good Step, But Classification-Parameters Need Careful Review

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Prof. SK Agarwal Editor at MBAUniverse.com

MBAUniverse.com News Desk |
February 22, 2019
AICTE has announced its framework to categorize “Standalone Institutions” into three categories – I, II, III. Category I and II institutions will enjoy considerable operational autonomy and can offer new courses, distance programs and the top Category institutions are exempted from AICTE inspections and annual approval process. It is a welcome step but the parameters for classification need closer examination
AICTE 3-Tier Categorization of B-schools

On January 18, accepting a longstanding demand of PGDM B-schools, AICTE announced its framework to categorize “Standalone Institutions” into three categories – I, II, III. As per the notification, Category I and II institutions will enjoy considerable operational autonomy and can offer new courses, even distance programs. Top Category institutions are even exempted from AICTE inspections and annual approval process.

With this notification, AICTE has accepted a long-standing demand of B-schools for greater autonomy. After a 8-year long legal battle with AICTE, led by Education Promotion Society of India (EPSI), a meeting was held on May 29, 2017 to find an amicable solution. Representing B-schools, Dr BA Metri, Director, IIM Trichy; Fr Abraham, Director, XLRI; Dr H Chaturvedi, Alt President, EPSI and Mr Sharad Jaipuria, Chairman, Jaipuria Group met AICTE Chairman Dr Anil Sahasrabudhe and Dr Janat Shah, Director, IIM Udaipur and Chairperson of AICTE Board of Management. Thereafter, Dr Shah worked with EPSI, AIMS and other representatives to developed this blue-print of graded autonomy.

While the graded autonomy framework is welcome, the parameters for classification need closer examination. Only two qualifying parameters are mentioned in AICTE Notification - high NBA scores or presence in two International Rankings. It comes as a surprise that globally accepted Accreditations like AACSB and EQUIS are missing. Omission of MHRD’s National Institute Ranking Framework (NIRF) is also very surprising. Instead, rankings by Quacquarelli Symonds (QS) and Times Higher Education (THE) have been included. Preliminary research by MBAUniverse.com reveals that these organizations primarily offer “University Rankings”, and their MBA rankings is not at par with top-tier B-school rankings like Financial Times or Economist or Bloomberg BusinessWeek.  

The Notification titled “ALL INDIA COUNCIL FOR TECHNICAL EDUCATION [CATEGORISATION OF STANDALONE INSTITUTIONS (SIs) FOR [GRANT OF GRADED AUTONOMY] REGULATIONS, 2019” was issued by AICTE on January 18, 2019. Setting the context of this regulation, AICTE Notification states: “AICTE recognizes the need to create an enabling environment whereby Standalone Institutions can become institutions of global excellence. AICTE recognizes that autonomy is pivotal to promoting and institutionalizing excellence in higher education and that the regulatory framework needs to facilitate better performing institutions towards excellence in higher education.”

Framework for Categorization of Standalone Institutions for Grant of Graded Autonomy
AICTE states that it will categorize Standalone Institutions into three categories i.e. Category-I, Category-II and Category-III based on the parameters as below:

(i) Category-I Standalone Institution:
a. It has been accredited by NBA with a score of 750 or above on a scale of 1000; or
b. It has been ranked among top 500 of reputed world rankings, such as Times Higher Education or QS.

(ii) Category-II Standalone Institution:
• It has been accredited by NBA with a score of 700 and above, upto 750 on a scale of 1000.

(iii) Category-III Standalone Institution:
Standalone Institution shall be in Category-III, if it does not come either under Category-I or Category-II.

“Dimensions of Autonomy” for Category-I & II Standalone Institutions

Sr No
Dimension
Autonomy to Category-I Institution
Autonomy to Category-II
Institution
1
Eligible for Grants and no inspections by the AICTE shall be required for the same
Yes
No
2
May start a new course/programme in disciplines that forms a part of existing academic framework without approval of the AICTE with the nomenclature of Diploma, Post Diploma Certificate, Post Graduate Certificate and Post Graduate Diploma in new and innovative areas that are relevant to local, national or international needs, with information to the AICTE.
Yes
Yes
3
May start skill courses, consistent with the National Skills Qualification Framework, without approval of the AICTE
Yes
Yes
4
May open research parks, incubation centres, institute society linkage centres, in self-financing mode, either on their own or in partnership with private partners, without approval of AICTE
Yes
No
5
May hire foreign faculty having taught at any institution appearing in top five hundred (500) of any of the world renowned ranking frameworks, such as the Times Higher Education World University Rankings or the QS Rankings, upto twenty percent over and above of their total sanctioned faculty strength, without AICTE approval. Will have the freedom to hire foreign faculty on “tenure/contract” basis
Yes
Yes
6
Shall be free to admit foreign students on merit, subject to a maximum of twenty percent, over and above of the strength of their approved domestic students. Would be free to fix and charge fees from foreign students without any restriction.
Yes
Yes
7
Shall build in an incentive structure to attract talented faculty following the AICTE laid down pay scales and will pay  from their own revenue sources and not from AICTE or Government funds. It must be approved by the Board of Management of the Standalone Institution
Yes
Yes
8
May engage in academic collaborations with foreign institutions in top 500 of Times Higher Education World University Rankings or QS Rankings or top 200 of discipline specific ranking in Times Higher Education World University Rankings or QS Rankings without approval of the AICTE.
Yes
No
9
May offer courses in the Open and Distance Learning mode, without approval of the AICTE, provided it satisfies all the norms & standard laid down by AICTE from time to time.
Yes
Yes
10
Shall be exempted from annual monitoring of their institutions and learning resource centre(s) as stipulated under AICTE Approval Process Handbook (APH)
Yes
Yes
11
In case there is any external review required by the AICTE under any statute or executive order, then it would be sufficient that the institution sends a report to the AICTE in a prescribed review format.
Yes
Yes

Source: MBAUniverse.com analysis of AICTE Notification

Categorization parameters need a re-evaluation?
For such an important classification, it is surprising that only two qualifying parameters i.e. high NBA scores or International Rankings are included in AICTE notification.

Omission of globally accepted Accreditations like AACSB and EQUIS and/or highly reputed international B-school rankings like Financial Times, Economist or Bloomberg BusinessWeek is puzzling indeed. Instead, rankings by either QS or Times Higher Education (THE) have been included as parameter of Category I classification.

Another point of contention is that while AICTE mentions “university rankings” from QS & THE for the classification, are University rankings the right yardstick to measure “standalone” institution? AICTE notification states: “Times Higher Education/QS Rankings” means annual publication of university rankings by Times Higher Education (THE) magazine and by Quacquarelli Symonds (QS).

Preliminary research by MBAUniverse.com reveals that QS publishes many rankings including QS World University Ranking. The most appropriate QS Global MBA Rankings 2019 ranks only 251 B-schools. Only 5 B-schools from India (IIMA, IIMB, IIMC, ISB & SPJIMR) are currently ranked in this 2019 Ranking. Apart from publishing rankings, QS organises QS World MBA Tour and offers "an extensive product range including print and online publications and software solutions." In methodology note for its ranking, QS admits having ranked some B-schools that didn’t even provide data for this ranking.

Times Higher Education or THE also publishes many rankings including World University Ranking and World Reputation Ranking. Its 2-year B-school Ranking ranks only 54 B-schools and 1-year MBA rankings has only 35 B-schools in Ranks.

In light of above facts, when MBAUniverse.com spoke to Directors of a few leading B-school, they expressed their reservations on the grading parameters.

While welcoming the notification, Dr Harivansh Chaturvedi, Alternate President of EPSI said, “Overall all the notification for graded autonomy is a good move by AICTE. It has been our demand for a longtime. However, classification parameters must be relevant, transparent and must not lead to any undue commercialization.”

As per the notification, AICTE is expected to “fix dates, at least two times in a year, preferably 1st of June and 1st of December by which an institution shall submit a request in prescribed format for categorization under these Regulations.”

Stay tuned to MBAUniverse.com for more details on MBA education policy updates.