With the government having approved the amended memorandum of association (MoA) of the Indian Institutes of Management (IIMs), these institutes now enjoy greater autonomy and have formulated plans to set up more campuses, revise faculty pay and raise funds themselves.
The prestigious business schools are in the process of finalising their plans post amendments.
We have one simple agenda and that is research and internationalisation of programmes. With the amended MoA, we want to bring the world onto the campus besides researching on emerging markets, said Pankaj Chandra, director, IIM Bangalore.
While IIM Ahmedabad plans to appoint its new director itself thanks to the modifications, IIM Kozhikode is looking at setting up a satellite campus in Kochi and IIM Lucknow plans to add a performance-based variable component to the compensation package of its faculty.
The changes in MoA is a governance issue and gives us more autonomy and better decision making at the board level, Chandra said.
IIMs are societies established under Societies Registration Act and each society has an MoA which lays down the objects and rules of governance of the institutes. The general superintendence, direction and control of the affairs of the society and its income and property are vested in the board of governors (BoGs).
As per the revised MoA, the respective IIMs BoG and not the ministry will set up a search-cum-selection committee on its own and this committee will then shortlist three candidates for the post of the IIM director. At present, the government takes all these decisions.
The amended MoA will help us in managing and raising funds, recruiting and compensating the faculty besides setting up new campuses both in India and abroad. We are looking at excellent faculty and ways of retaining them by topping up their salary, said Debashis Chatterjee, director, IIM-K.
Incidentally, IIM-K launched its satellite campus in Kochi on Thursday which will primarily focus on executive education with full-time and part-time programmes for middle and senior level executives.
In fact, even the review committee set up by the government under RC Bhargava had suggested that the remuneration of all IIM staff should be determined by the board, taking into consideration market conditions so as to attract and retain quality talent, ability to pay, and the need to provide motivation for performance.
IIM-L is also in the process of evolving a performance management system where academic contribution would be rewarded.
This would be achieved by a healthy mix of fixed and variable salary. We will make a composite index of performance and benchmark it as there is a constant issue that the compensation is not enough, said Devi Singh, director, IIM-L.