The Difference in Employability of Graduates in Public and Private Sector Management Education Institutes, Sri Lanka Kalpana Ambepitiya Department of Management and Finance, General Sir John Kotelawala Defence University, Kandawala Estate, Rathmalana, Sri Lanka.

Introduction • The demand for the higher education is increasing. • Up to 12,000 Sri Lankan students go abroad each year to study (ICEF Monitor 2013) • Sri Lanka has been spending over Rs. 80 billion annually for educational purposes (Nanayakkara 2010) • There are 59% of students were eligible for the university admission, but only 20% received admissions to enrol with universities (UGC 2012). • The government has invited private sector to invest in the education, because some 100,000 seek further studies annually through the private sector education system (Dissanayake 2014). • In private institutes, the students can enrol & continue higher education in Management without having A/L results (Esoft 2012). In public universities, students need A/L to enrol. Finally both can complete similar degree programmes in the field of Management. By Kalpana Ambepitiya

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Research Problem • Producing a graduate at age 20 in Private institute and producing a graduate at age 24-25 in public institute. • The country's Higher education institutions are charged to develop human capital through teaching and knowledge development, building a knowledge base through research, dissemination and use of knowledge by interacting with the users of knowledge. • This study focuses to identify any difference in employability of graduates in public and private higher education institutes who offer Management degree programmes. By Kalpana Ambepitiya

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Literature Review (Theoretical) •

Higher Education is a semi-public good which possesses both public and private good characteristics. In general a private consumption benefits the element which is the individual consumer enjoys, and at the same time a public consumption benefit or externality which other members of the community enjoy (Brown & Jackson 1990: 75).

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Human Capital Theory : Human capital consists of the accumulation of all prior investments in education, on-the-job training, health, migration and other factors that increase individual productivity (Schultz, 1961).

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Actor Theory: It is possible for the individual to take responsibility for its own employability and to develop knowledge and skills, which are demanded for a successful professional life (Johansson & Tenblad 2007).

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Career Anchor Theory: Eight themes in the Career Anchor as Functional competence, General managerial competence, Independence, Security, Entrepreneurial creativity, Sense of service, Pure challenge and Life style (Schein 1978) By Kalpana Ambepitiya

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Cont.: (Empirical) • The higher the rate of economic growth, larger the resources, which could be diverted to the higher education sector. As a result, higher education sector is in a position to supply more skilled labour and thereby promote economic growth (Chandrasiri 2008). • People are unemployed because of unemployment mismatch. And there are four main parties who are involved in this process as employers, candidates (graduates), state (government) and Institutions (university). The educational institutes are criticized for not accommodating the volume and variety of students’ demand, high unit cost arising from unproductive overheads, inflexible curricula and teaching methods, and, lack of research output (Vidanapathirana 2000) • One of the universities’ main obligation is to produce talented and competent graduates suitable for the development process of the country (Ariyawansa 2008). • The graduate employability of Management graduates of all public universities is 65.9%. Underemployed percentage is 15.1 when 19.5% are unemployed (Ministry of Higher Education 2012). 5 By Kalpana Ambepitiya

Graduate Employability (Public Universities) Employment by Discipline (%) Employed

0

0.6

23.2

22.6

1.5

Under employed

0 19.5

Unemployed

1.3 5.5 3.3

No Response

0.7 2.9 1.3

1 22

2.8 18.4 27.7

7.3

8.1

48.6

15.1

8.6

23.8 12.6

89.9

95.1

22

18.4 69.5

68.7

68.4

65.9

56.9 35.8

31.5

Agriculture

Science

Source: Ministry of Higher Education, 2013

Arts

Management

Medicine

Engineering

Other

External

By Kalpana Ambepitiya

All

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Conceptual Framework Public University and Private University Education •Academic qualification industry orientation Controllable factors

with

•Soft Skills •Career Development Specific Skills

–

JobEmployability

•Technical Skills

Personal and psychological Factors •Self-confidence

Government

•Self-efficiency

Social factors

•Self-esteem

Economic Growth Employers’ expectation

Source: developed by the researcher

Non-Controllable factors By Kalpana Ambepitiya

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Research Objectives • To identify how the Faculty of Commerce and Management, University of Kelaniya and Management Faculty of ICBT degree programmes facilitate and support their students to develop employable skills which lead to a better employment in future. • To study how effectively these two institutes offer their degree programmes to support students in order to get jobs in the corporate environment. • To recognize the required level of these two institutes’ degree programmes in order to fulfil the requirements of the job market. By Kalpana Ambepitiya

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Research Method • Survey method: Empirical Survey • Sampling method: Snowball sampling and Convenience sampling • Sample size: 121 respondents graduated between 2007 and 2010 (64 graduates from the State institute and 57 graduates from the Private institute) • Data Collection method: Questionnaires via Google+ (Doc) and Facebook, online interviews with 06 respondents • Data analysis: methods of univariate analysis, such as frequency tables, diagrams, correlation and measures of dispersion. • controllable variables such as qualifications, soft skills, job specific skills, technical skills and non controllable variables such as Government actions, Social factors, Economic Growth, Employers’ expectation and psychological factorswere measured and analysed. 9 By Kalpana Ambepitiya

Results - Satisfaction with the acquired knowledge Satisfaction with the acquired knowledge KLN - Mgmt

ICBT - Mgmt

21 (33%)

17 (27%) 15 (26%) 13 (23%)

13 (20%) 11 (19%)

10 (17%) 8 (14%)

9 (14%)

4 (6%)

Strongly Satisfied

Satisfied

Neutral

Dissatisfied

Strongly Dissatisfied

Source: Survey data

The majority of graduates stated that they are satisfied with the acquired knowledge from the University of Kelaniya, dissatisfaction has shown by a greater part of graduates from ICBT , also there is 1/5 of Public university graduates are strongly dissatisfied and shows that the provided knowledge is insufficient. By Kalpana Ambepitiya

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Results – Statistical data Satisfaction with the acquired knowledge

KLN Mgmt Mean Standard Error Median Mode Standard Deviation Sample Variance Range

Satisfaction with the gained knowledge and job specific skills

The acquired knowledge support in employment

ICBT Mgmt

KLN Mgmt

ICBT Mgmt

KLN - Mgmt

Employment and its relevance to the degree ICBT Mgmt

KLN Mgmt

ICBT - Mgmt

12.8

11.4

32

28.5

12.8

11.4

32

28.5

2.9

1.2

14

2.5

2.4

3

19

13.5

13 Satisfied

11

32

28.5

13

10 Dissatisfied

32

28.5 Yes

Neutral

Yes

Yes

Neutral

Yes

6.6

2.7

19.7

3.5

5.5

6.7

26.8

19

44.2

7.3

392

12.5

30.7

45.3

722

364.5

17

7

28

5

14

17

38

27

Source: Survey data

Most of graduates who are not satisfied with the practical and job specific skills provided by their institutes . Based on the mean value, over 50% of graduates from both institutes agree upon that the acquired knowledge has supported in the employment. 35% of public university graduates are employed in public sector,. By Kalpana Ambepitiya

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Results – Existing employability and the relevance to the field of the degree Existing employability and relevance to the field of the degree No

Relevant

15 (26%) ICBT - Mgmt 42 ( 74%)

13 (20%) KLN - Mgmt 51 (80%)

Source: Survey data

80% of graduates from Mgt, University of Kelaniya and 74% of graduates ICBT are working for relevant employments at presents By Kalpana Ambepitiya

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Results – Challenges faced in the first employment Response

Challenges faced in the first employment KLN - Mgmt

ICBT - Mgmt

English Language

50

47%

9

10%

Computer literacy

12

11%

10

12%

Knowledge

11

10%

23

27%

Practical skills

28

26%

25

29%

Common sense

5

5%

16

19%

Any other

1

1

3

3%

107

100%

86

100%

Total

English Language fluency was the main challenge that graduates of the public university faced.

Source: Survey data

By Kalpana Ambepitiya

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Results – Correlation between the practical knowledge and job specific skills developed Satisfaction towards the practical knowledge & job specific skills Private University

Satisfaction towards the practical knowledge & job specific skills Public University 70

60 y = 0.9232x + 1.4592 R² = 0.9258

y = 0.938x + 1.3222 R² = 0.8598

60

50

Satisfaction towards the practical knowledge & job specific skills Public University

40

30

Linear (Satisfaction towards the practical knowledge & job specific skills Public University)

20

Practical Knowledge

Practical Knowledge

50 40

Satisfaction towards the practical knowledge & job specific skills Private University

30

Linear (Satisfaction towards the practical knowledge & job specific skills Private University)

20

10

10

0

0 0

20

40

60

80

0

Job specific skills

20

40

60

Job specific skills

Source: Survey data

By Kalpana Ambepitiya

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Results – Data from Interview transcripts Private Sector

Public Sector

1.

Salary

1.

Job security

2.

Quick Career growth

2.

Family wellbeing

3.

Accept qualifications

3.

Pension scheme

4.

Relevance to the field of study

4.

Travel distance

5.

Family wellbeing

5.

Time saving

6.

Further education

6.

Salary

7.

Rewards

7.

Freedom

8.

Efficiency

8.

More holidays and other benefits

9.

Exposure

9.

Further education

10.

Culture

10.

Accept experience

11.

Job security

11.

Rewards

12.

Transparent recruiting procedure

12.

Quick Career growth

13.

Accept experience

13.

Accept qualifications

14.

Travel distance

14.

Relevant fields available

15.

Freedom

15.

Efficiency

16.

More holidays and other benefits

16.

Exposure

17.

Time saving

17.

Culture

18.

Pension scheme

18.

Transparent recruiting procedure

By Kalpana Ambepitiya

Most important

Less important

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Conclusion, Implication and Significance •

• •

•

•

•

This study highlights the importance of improving the employability of graduates of public and private higher education especially in the Management stream. The graduates from both institutes have to go through a difficult period in the early stages of their career due to some shortcomings in their degree programmes. There should be proper procedures and standards established in public and private higher education to reach the international quality standards of higher education. There should be a strong system to set up for undergraduates to engage with industrial activities during their study time and creating relationships and networking with industries. The access from university to corporation and vice versa must be built as a strategy. At the same time a public private higher education institution collaboration must be established in order to ensure the development of graduates who have equal employable skills and abilities. It is required to monitor and evaluate students’ progress continually; therefore a suitable mechanism should be implemented with the involvement of external parties such as industries and foreign university representatives. The results have a significant influence on the higher education sector of Sri Lanka as it helps both sectors to understand how they need to develop and upgrade themselves in order to produce employable graduates. By Kalpana Ambepitiya

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