Assessment of Technical Efficiency of Indian B-Schools

Abstract

In the present economy, both at national and international front service sector, is playing a pivotal role as a major contributor towards the GDP. The importance of service sector necessitates the efficiency measurement of various service units. The opening of Indian economy (Liberalisation – Privitisation – Globalisation) has affected every segment of Indian industry and service sector, education being no exception. Today, management education is one of the most sought after higher education options for Indian students. Management education in India has also undergone many changes in the last decade or so, meeting the need of industries. Meeting this growing demand has lead to proliferation of management institutions, and in many a cases the quality of education is compromised. Some popular Indian magazines and journals started ranking the Indian B-Schools intending to give information to all the stake holders involved. All these methods either use weighted average or clustering method to rank the institutes. This chapter proposes an alternative method based on efficiency analysis using Data Envelopment Analysis to rank the Indian B-Schools. The B-schools are observed over multiple periods of time, and the variations of efficiency are used to draw a conclusion about the performance of B-schools. Window analysis is used to compare the performance of B-schools over the period of time.