REQUIREMENTS OF MANAGERIAL PERSONNEL FOR THE THIRD AND FOURTH PLANS AND PROVISION OF INCREASED FACILITIES FOR TRAINING IN MANAGEMENT
The Committee was entrusted initially With the assessment of managerial personnel for the third Plan period. The third Plan period is about to be over and planning for the fourth Plan is under way. Hence the Committee has made tentative estimates for the fourth Plan. It would be possible to work out correct estimates only after the Plan targets for industry have been fixed and the financial ceilings decided. However, for purposes of preliminary estimates the figures used by the Planning Commission in their Rs. 220,000 million Plan for the fourth Plan period can well be a guide. The following is a structure of manufacturing industries in India from 1960-61 to 1975-76 as Anticipated by the Planners:
It will be observed that the net value of production at the end of the year 1965-66 stands at Rs. 33,580 millions. It is estimated to increase to Rs. 60,000 millions at the end of the fourth Plan period. This represents about 80 % increase in production on the prices obtaining in 1960-61. The number of management personnel required, therefore, is also 80% more for industrial production than that estimated for the third Plan period. The following is the estimate of the number of managerial personnel required under technical management and general and commercial management for the third and fourth Plan schemes:
THIRD PLAN
Technical General &
Management Commercial
Management
Trade & Commerce - 1,700
Banking - 500
2Construction 1,070 2,700
Transportation - 1,690
Manufacturing Industries 5,915 6,506
6,985 13,096
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FOURTH PLAN
Technical General &
Management Commercial
Management
Manufacturing Industries 10,267 11,711
Banking - 900
Trade & Commerce - 3,060
Construction 1,926 4,860
Transport and Communications - 3,042
12,573 23,573
There are a number of factors which have to be taken into consideration in regard to the above estimates. As pointed out earlier, the estimated requirements are based on the assumption that division of industry between private sector and public sector would be as in the third Plan. If there is further rationalisation, the requirements of the managerial personnel would be higher. Further these estimates are based on the norms as worked out for the third Plan. There would be material variation in certain industries due to introduction of modern methods of production, increased efficiency and rationalisation. The assessment figures have therefore this limitation.
From the analysis of the replies received to the questionnaire, it is observed, of the 1,700 technical personnel employed in manufacturing industries, about 500 require training. This works out to about 30 per cent for technical managerial personnel and about the same percentage would be applicable to the other category of the general and commercial personnel.
The number of people to be trained in the category of Technical Management is therefore of the order of 4,000 and under General and Commercial Management about 7,200.
For the training of 4,000 industrial engineers during the five- year period, as the course is of 12-month duration the number to be trained per annum is 800. The intake to this course on a full-time basis is 20 and hence the number that will be possible to train per annum would be considerably less. The target of training of industrial engineers for the fourth Plan should be the training of 300 industrial engineers per annum. The following are likely places, among others, where such training could be organised:
(1) Indian Institute of Technology, Bombay. (2) Indian Institute of Technology, Madras. (3) Indian Institute of Technology, Kanpur. (4) Indian Institute of Technology, New Delhi. (5) Indian Institute of Science, Bangalore. (6) Jadavpur University, Calcutta. (7) Bengal Engineering College, Howrah. (8) P. S. G. College of Engineering & Technology, Coimbatore. (9) Victoria Jubilee Technical Institute, Bombay. (10) Maulana Azad College of Engineering & Technology, Bhopal. (11) Regional Engineering College, Durgapur.
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(12) Regional Engineering College, Rourkela. (13) Regional Engineering College, Jamshedpur. (14) Faculty of Technology, Baroda University, Baroda. (15) Bihar Institute of Technology, Sindri.
In regard to the lower cadres of supervisory personnel a concerted effort should be made to persuade as many industrial establishments as possible to undertake the Organisation of this training. The All India Board of Technical Studies in Management has estimated the requirements of the course at Rs. 8,000 per course and this has been reported to be very inadequate and therefore an assessment of the requirements for the Organisation of this training Will have to be made afresh and future grants sanctioned on this basis. The principle to be observed is that an industrial establishment volunteering to start this course should not be handicapped with any financial liability on this account. The Tata Iron & Steel Co. has sponsored the proposal to start a full-time institution for imparting full-time instruction in Foremanship and Supervision. This is a move in the right direction. The Committee is of the view that the Institute should be started as early as possible and that at least three institutions of this type should be established during the fourth Plan period. The other two suitable centres are Bangalore and Bombay. The possibility of National Institute for Training in Industrial Engineering organising this course should be considered in the first instance. If for some reason, the National Institute for Training in Industrial Engineering is not able to organize this course then only should another centre in Bombay be considered.
The questionnaire for managerial personnel had also sought information on the additional centres to be started for the organization of part-time courses in Industrial and Business Management. The Centres suggested are:-
(1) Baroda (2) Coimbatore (3) Madurai (4) Bangalore (5) Durgapur (6) Kanpur (7) Ranchi (8) Jamshedpur (9) Ahmedabad (10) Bhilai (11) Hyderabad
Of these, the Board has already approved the starting of management courses in Madurai, Hyderabad and Coimbatore.
In Appendix III may be seen the locationwise distribution of industries pertaining to electrical and mechanical machinery equipment and managerial personnel required for their contemplated development. In Appendix V should be seen the location of the major industries- Ferrous, Non-ferrous and Chemical Industries. It will be observed that apart from Bombay, Calcutta, Jamshedpur, Madras, Coimbatore and Durgapur, at least as far as the third Plan is concerned, there is no other suitable centre for the organisation of
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part-time courses in Industrial Management. The Committee would, therefore, suggest that requests for starting of part-time courses in Industrial Management should be limited to such centres where industrial development envisaged employment of large numbers of managerial personnel.
One of the bottlenecks in the Organisation of part-time courses in Business Management and Industrial Management is the lack of properly qualified teachers to teach management subjects and industrial psychology. The Committee is of the view that this matter requires attention of the Board and would suggest for consideration that some collaborative arrangement may be worked out with the Indian Institutes of Management at Ahmedabad and Calcutta and with the National Institute for Training in Industrial Engineering under which training in Management Principles and Practices and Industrial Psychology could be imparted by the personnel of these three institutions to those undergoing instruction in University institutions. There are two ways by which this could be achieved. The first and the most obvious is for the three institutes named above to depute the trained teachers for short periods for a month or so to university institutions. The other possibility is for the university institutions to send their students to the management institutions for short periods for receiving instruction in special management subjects. Further, the two Institutes of Management should organise regular courses for the training of teachers of management subjects in University institutions.
The Board has approved introduction of what is known as the slab system under which full-time instruction is imparted for three months in a year and the whole training is phased in three years. This system has not been introduced by the University institutions at present conducting part-time courses. Adoption of this method would extend the catchment area of the trainees for the University institutions and would benefit industrial and commercial establishments which are not in the immediate vicinity of the University institutions.
As already stated earlier, in the field of General and Commercial Management, facilities for full-time courses exist in the two Management Institutions set up at Ahmedabad and Calcutta. These two institutions have programmed for an admission capacity of 150 for their post-graduate Diploma Course in Business Administration. It is expected that this target will be reached by the end of the current Plan period. It was reported to the Committee that Government have under consideration, the question of increasing intake to these institutions to 300 during the fourth Plan period. This is a move in the right direction and is supported by the Committee. The Committee recommends that two more institutions on the pattern of the existing institutions at Ahmedabad and Calcutta should be set up during the fourth Plan period.
The Committee further recommends that intake to the institutions conducting part-time courses at present should be increased for Business Management and that new centres for business management be started wherever possible after ensuring that suitable teachers would be available. The Committee expresses its grateful thanks to the industrialists and organisations and people who extended their cooperation to the Committee and furnished necessary information.