Challenges for business education in the context of globalization (The example of Georgia) Ia Natsvlishvili Associate Professor Faculty of Economics and Business Ivane Javakhishvili Tbilisi State University (TSU) Tbilisi; Georgia

Competitiveness of graduates in the global market The competitiveness of business graduates in the global market is defined by the competencies that they acquire in the period of learning. Labour market characteristics that play an important role in ensuring a country’s competitiveness: qualified labour, financial skills, international experience, competent top managers

Tuning business education around the world Results of research conducted in Georgia, Europe and Latin America within the framework of the Tuning project (mutual agreement of educational structures in Europe) allow the making of significant conclusions about business education challenges in the world.

Tuning business education around the world Research results answer questions 1.What should be the competencies taught by business education programs in Latin America and Europe? 2. Does education respond to labour market demands and the expectations of employers? 3.Do the opinions of students, graduates and academic personnel match?

Tuning business education around the world Research was conducted on two types of competencies - general competencies and field specific competencies Research results were ranked according to the importance of competencies the level of their achievement in educational institutions.

Tuning business education around the world: the sample Europe 27 countries in nine fields of education; The number of people surveyed within the framework of business education is 7087 graduates – 1948, professors – 2041, students – 2219, employers – 879. Latin America about 200 members of academic societies in 19 Latin American countries ; The number of people surveyed within business education: 824 academic personnel, 714 employers, 2939 graduates and 3944 students Georgia 4 Universities: 90 academic personnel, 150 students, 120 graduates, 60 employers.

High priority field specific competencies in Latin America 1. Operational, tactical and strategic planning skills; 2. Skill in interpreting accounting and financial information in the process of investment decision making for a company; 3. Skill in managing a company’s financial resources; 4. Skill in developing and managing the human resources of a company.

Field specific competencies of high-priority across Europe ranked by importance 1. Ability to analyze and structure a problem of an enterprise and design a solution (for instance: entering a new market) 2.Ability to learn, for instance, how, when and where individual development is necessary (e.g. rhetoric, presentation technique, team work, private management) 3. Ability to read, write and speak foreign language (e.g. English as working foreign language). It is not listed in top five competencies chosen by employers. 4. Defining adequate instruments and their usage (e.g. market analysis, statistical analysis, comparative coefficients). Employers say skill in using quantitative analysis in business decision-making is important

Georgia: 3 Common Competencies in top 1.Ability to analyze and structure a problem of an enterprise and design a solution 3.Define criteria according to which an enterprise is defined and link the results with the analysis of the environment to identify perspectives 26.Understanding principles of project management

IMPORTANCE & ACHIEVEMENT – ACADEMICS Georgia

IMPORTANCE & ACHIEVEMENT - EMPLOYERS

IMPORTANCE & ACHIEVEMENT - STUDENTS

IMPORTANCE & ACHIEVEMENT - GRADUATES

ACHIEVEMENT COMPARISONS BETWEEN GROUPS

Field specific competencies ranked by TSU employers Competence #1 – skill to analyse and structure problems of a company and ability to solve them (e.g. entering a market) 83,3 % (importance ) 66,6 % (achievement) Competence #6 - Determining of adequate instruments and using them (e.g. statistical analysis, comparative coefficients) 66,6 % (importance ) 66,6 % (achievement) Competence #13– management of a company by means of planning and controlling and using concepts, methods and instruments 63,3 % (importance ) 63,3 % (achievement)

Competencies ranked by TSU academic personnel Competence #1– skill to analyse and structure problems of a company and ability to solve them (e.g. entering to market) 70,0 % (importance) 43,3 % (achievement) Competence #19 – knowledge of legal principles and connecting this with business management knowledge 60,0 % (importance) 43,3 % (achievement) Competence #22 – knowledge of accounting and financial systems and their usage (e.g. profit/loss balance accounting) 53,3 % (importance) 46,6 % (achievement) Competence #16 – knowledge of existing and new technologies and their influence on new/future markets 53,3 % (importance) 46,6 % (achievement) Competence #5 – development and implementation of information systems 53,3 % (importance) 46,6 % (achievement)

Competencies ranked by TSU students Competence #1– skill to analyse and structure problems of a company and ability to solve them (e.g. entering to market) 76,6 % (importance) 56,6 % (achievement) Competence #16 – knowledge of existing and new technologies and their influence on new/future markets 76,6 % (importance) 43 % (achievement) Competence #28 – leadership skills in an organization 73 % (importance) 50 % (achievement) Competence #23- skill to read, write and speak foreign language 70 % (importance) 50 % (achievement)

Competencies ranked by TSU graduates Competence #1– skill to analyse and structure problems of a company and ability to solve them (e.g. entering to market) 80 % (importance) 7 % (achievement) Competence #10 – determining of micro and macroeconomic elements and their influence on business organization (e.g. financial systems, monetary systems, domestic markets) 70 % (importance) 63 % (achievement) Competence #9 – definition of functional fields of an organization and determining existing connections between them (e.g. purchases, production, logistics, finances, marketing, human resources) 66,6 % (importance) 43,3 % (achievement) Competence #22– knowledge of accounting and financial systems and their usage (e.g. profit/loss balance accounting) 60% (importance) 60 % (achievement)

Results for Tbilisi State University Only one competence (competence #1) is common for all four groups of respondents. Two competencies (competence #16 and competence #22) are common for two groups of respondents: Competence #16 is common for academic personal and students, Competence #22 is common for graduates and academic personnel.

Research results around the world indicate that Students have a better understanding than academic personel of labour market demands and types of competencies ensuring competitiveness. Opinions of students and graduates about the importance of specific competencies are more different from employers’ opinions, than their opinions about general competencies. Difference in opinions of employers and students about specific competencies are greater than that of employers and graduates. The importance of competencies is higher than the level of their achievements in educational institutions.The difference is especially noticed in the skill of using knowledge in practice and the level of forming this skill.

The main challenge for business education Main Challenge - development of general and field specific competencies to ensure the competitiveness of graduates in the global market. Principles of development of competitive Business educational programs: definition of program profile and competencies formed as a result of learning; implementation of a learning-teaching-evaluating approach; determining the load for students: constant ensuring of quality; encouraging mobility of students and academic personnel for the purpose of gaining international experience; taking students’ opinions into consideration in the process of designing the program; increasing the role of internships in curriculum; organization of consultations between academic personnel and employers in order to bring their opinions closer; involvement of study courses in curricula necessary for formation of first-priority competencies in Europe and the whole world.

Contact Information Author : Ia Natsvlishvili Associate Professor Faculty of Economics and Business Ivane Javakhishvili Tbilisi State University (TSU); Tbilisi, Georgia or Presenter : Zhongyou Tan Visiting scholar School of Business The George Washington University Washington, DC

Contact Information Author : Ia Natsvlishvili Associate Professor Faculty of Economics and Business Ivane Javakhishvili Tbilisi State University (TSU); Tbilisi, Georgia Presenter : Zhongyou Tan Visiting scholar School of Business The George Washington University Washington, DC

Presented at the annual Washington Business Research Forum Washington DC January 8-9, 2010