The Indian Institute of Management (IIM), Kozhikode, is set to enjoy greater operational autonomy with the ministry of human resource development approving its amended memorandum of association (MoA). Under the changed MoA, the institute will be able to appoint its own director and board of governors (BoG) besides revising the remuneration of the faculty.

"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, said Debashis Chatterjee, director, IIM-K.

IIMs are societies established under various Societies Registration Acts, and each society has an MoA which lays down the objects and rules of governance of the IIM. The general superintendence, direction and control of the affairs of the society and its income and property are vested in the board of governors. As per the revised MoA, the 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.

With the changed MoA, making faculty pay more flexible is on the institute's agenda and it is discussing the matter with the board. We are looking at excellent faculty and ways of retaining them by topping up their salary, Chatterjee added.