TEACHING ECONOMICS TO MBA STUDENTSTEACHING ECONOMICS TO MBA STUDENTS

“ “ You sow a thought, you reap an actionYou sow a thought, you reap an actionYou sow an action, you reap a habitYou sow an action, you reap a habit

You sow an habit, you reap a characterYou sow an habit, you reap a character You sow a character, you reap a destiny”You sow a character, you reap a destiny”

Prof.B.P.MahapatraProf.B.P.Mahapatra Faculty Member In EconomicsFaculty Member In Economics

GIFTGIFT BhubaneswarBhubaneswar

Prof.B.P.Mahapatra Prof.B.P.Mahapatra

Faculty MemberFaculty Member

AIBMAIBM

BERHAMPUIRBERHAMPUIR

Why this lecture?Why this lecture?

Most of the methods applied to Most of the methods applied to teaching Economics is also applicable teaching Economics is also applicable to teaching other papers in a MBA to teaching other papers in a MBA curriculum curriculum

source-Business Weeksource-Business Week

Why Economics is Important?Why Economics is Important?

Why Economics is ImportantWhy Economics is Important

In 2007,a survey* of 275 AACSB (the Association to Advance Collegiate Schools of Business ) )institutions relating to economics course requirements in their MBA programs and the distribution of topics. The survey findings are:

• More than 50% of institutions require either macro or micro economics courses or business statistics course as prerequisites for the managerial economics course.

• Both macro and micro economics are required as prerequisites by 53% of the institutions.

• Calculus is still required as a prerequisite by more than 40% of the institutions.

• On the average macro, micro and managerial economics components constitute 18%, 28% and 52% respectively, of the managerial economics courses.

• A majority of the institutions (65%) require more than one economics course.

• On the average institutions cover 37% quantitative applications, 19% cases and 15% global and trade issues in their managerial economics courses.

• More than 50% of institutions do not use any computer software in teaching managerial economics course and of those that use computer software a majority use Excel in their courses.

• A majority of the AACSB institutions do not waive or substitute managerial economics course at the MBA level, even with prior managerial economics course work at the undergraduate level.

*Source-Journal of College Teaching & Learning – September 2007

MYTHSMYTHS

MBA students do not want to learn about MBA students do not want to learn about economics, and especially not micro.economics, and especially not micro.

They haven't the patience for intellectual rigour, They haven't the patience for intellectual rigour, but want everything distilled to a few bullet points. but want everything distilled to a few bullet points.

They are not much concerned about the research They are not much concerned about the research prowess of their teachersthey see research as prowess of their teachersthey see research as something that so preoccupies their tutors, that something that so preoccupies their tutors, that these do not pay enough attention to their teaching. these do not pay enough attention to their teaching.

REALITYREALITY - However, many MBA students can be persuaded of the huge - However, many MBA students can be persuaded of the huge

value of studying economics (macro and microvalue of studying economics (macro and micro

Why MBA Students are so demandingWhy MBA Students are so demanding

They see themselves as customers, They see themselves as customers, - They pay high fees, and they are very sensitive to the high - They pay high fees, and they are very sensitive to the high

opportunity cost of their time.They feel entitled to expect very opportunity cost of their time.They feel entitled to expect very high standards, and entitled to get angry when standards drop. high standards, and entitled to get angry when standards drop. But as a corollary - and this is one of the real rewards of working But as a corollary - and this is one of the real rewards of working with MBA students - they are highly motivated and expected to with MBA students - they are highly motivated and expected to work hard.work hard.

MBA students, like any other students, vary greatly, so one should MBA students, like any other students, vary greatly, so one should be careful to avoid stereotypes. They are often portrayed as very be careful to avoid stereotypes. They are often portrayed as very career driven, very market oriented career driven, very market oriented

Collectively, they have a breadth of knowledge and experience Collectively, they have a breadth of knowledge and experience with different disciplines with different disciplines

The beauty of this is that if you pick an example from a particular The beauty of this is that if you pick an example from a particular

industry to illustrate a point, the chances are that at least one industry to illustrate a point, the chances are that at least one student will have experience of working in that industry, or student will have experience of working in that industry, or experience as a customer of companies in that industryexperience as a customer of companies in that industry

CHALLENGESCHALLENGES

Generally we can categorise studentsGenerally we can categorise students (a)Those have studied some economics formally at school (a)Those have studied some economics formally at school and/or universityand/or university (b)Those have not studied economics formally, but read(b)Those have not studied economics formally, but read economics articles in The Economic Times,The Hindu economics articles in The Economic Times,The Hindu Business Line,Business Standard.Business Line,Business Standard. (c)Those who will not fall in above two categories (a) and (b) (c)Those who will not fall in above two categories (a) and (b) So there can not be a single teaching style that is ideal for So there can not be a single teaching style that is ideal for

all the many types of MBA students.all the many types of MBA students. Mathematical ability varies very widely. Those with a Mathematical ability varies very widely. Those with a

background in the arts tend to be thrown by mathematical background in the arts tend to be thrown by mathematical models in an economics course, so these have to be used models in an economics course, so these have to be used with cautionwith caution

Enjoyable TeachingEnjoyable Teaching Learning from the feedback given by MBA students. Learning from the feedback given by MBA students. The propensity of MBA students to complain is highly nonlinear.The propensity of MBA students to complain is highly nonlinear. MBA teaching requires painstaking preparation. Students want all MBA teaching requires painstaking preparation. Students want all

the slides, cases, web references, readings, assignment details, the slides, cases, web references, readings, assignment details, past exam papers - everything, indeed - in advance.past exam papers - everything, indeed - in advance.

Don't "teach to the textbook" - unless, of course, it is a text you Don't "teach to the textbook" - unless, of course, it is a text you have written yourself. have written yourself.

- Unique teaching- Unique teaching TopicalityTopicality The life cycle for materials used with MBA students is not quite so The life cycle for materials used with MBA students is not quite so

short.short. Intellectual modestyIntellectual modesty Dealing with students EnquiryDealing with students Enquiry -T-Teaching must be more interactive eaching must be more interactive -Teacher should have patience to listen a stupid questions & -Teacher should have patience to listen a stupid questions &

stupid stupid answers answers -S-Students tend to be hugely impressed if you remember tudents tend to be hugely impressed if you remember

questions raised in one session and then come back a few questions raised in one session and then come back a few lectures later and say, "as that student said in lecture 2." This lectures later and say, "as that student said in lecture 2." This sort of thing really matters.sort of thing really matters.

Interdisciplinary Approach- -Linkage with other field & disciplineInterdisciplinary Approach- -Linkage with other field & discipline

MBA Teaching and ResearchMBA Teaching and Research

Virtuous circleVirtuous circle

MBA student as a customer who places a high value on MBA student as a customer who places a high value on distinction, and if research can deliver distinction then it is distinction, and if research can deliver distinction then it is of value.of value.

Research projects generate distinctive insights and Research projects generate distinctive insights and evidence. Students appreciate the lecturer who can make evidence. Students appreciate the lecturer who can make 'off the cuff' reference to these, especially in response to 'off the cuff' reference to these, especially in response to student questions in class. It helps when projects are student questions in class. It helps when projects are commissioned by international organisations, government commissioned by international organisations, government departments or companies, because this persuades departments or companies, because this persuades students that economic principles can be put to very students that economic principles can be put to very practical use. Moreover, active researchers will have practical use. Moreover, active researchers will have research associates who are a very useful resource for research associates who are a very useful resource for students. This is most obvious in project work, where these students. This is most obvious in project work, where these researchers provide additional expertiseresearchers provide additional expertise

Methods to teach EconomicsMethods to teach Economics

Lecture Method-Talk &chalk method,Lecture Method-Talk &chalk method,

SeminarSeminar Case Method-The case,preparedness of the Case Method-The case,preparedness of the

students,discussionstudents,discussion Pedagogical Diagrammatic DevicePedagogical Diagrammatic Device

-A good picture should be-A good picture should be

SimpleSimple

AccurateAccurate

FlexibleFlexible

Why case MethodWhy case Method

Economics education should enable students to ‘think like Economics education should enable students to ‘think like economists’. economists’.

Case method is helping students develop following skills in studentsCase method is helping students develop following skills in students-Knowledge-Knowledge-Understanding-Understanding-Comprehension-Comprehension-Application-Application-Analysis-Analysis-Synthesis-Synthesis-Evaluation-Evaluation

Pedagogical issues of Case MethodPedagogical issues of Case Method

Motivation to learn theoryMotivation to learn theory Application of theoryApplication of theory Use of evidence. Use of evidence. Limitation of theoryLimitation of theory

Approach to Case methodApproach to Case method

1.As a support to lectures & seminars1.As a support to lectures & seminars- Extracts from newspaper&business journal- Extracts from newspaper&business journalAdvantage-Requires relatively less preparationAdvantage-Requires relatively less preparation constitutes an easy and gradual introduction to the use ofconstitutes an easy and gradual introduction to the use of longer and more comprehensive case studieslonger and more comprehensive case studies

2.The second way of using case studies is to challenge the students to 2.The second way of using case studies is to challenge the students to grapple with a decision-maker’s dilemma, formulate a strategy and come grapple with a decision-maker’s dilemma, formulate a strategy and come to a class prepared to explain and defend their recommendations. In this to a class prepared to explain and defend their recommendations. In this approach, which is usually referred to as ‘case method teaching’, the approach, which is usually referred to as ‘case method teaching’, the instructor either does not lecture or conducts a limited number of lectures instructor either does not lecture or conducts a limited number of lectures that are complemented by the analysis of longer and more complex case that are complemented by the analysis of longer and more complex case studies. The role of the lecturer is to moderate a classroom discussion studies. The role of the lecturer is to moderate a classroom discussion among the students in which the students compare their different among the students in which the students compare their different approaches. Learning from each other, the students work together to reach approaches. Learning from each other, the students work together to reach a richer understanding. This requires more effort on the part of the lecturer a richer understanding. This requires more effort on the part of the lecturer in order to prepare the required case studies and to plan for their use in in order to prepare the required case studies and to plan for their use in class discussion.class discussion.

Elements of case methodElements of case method

1.Through the use of newsclips1.Through the use of newsclips Osmotic newsclips-Osmotic newsclips- have no commentary except headings have no commentary except headings

familiarity will eventually translate into economic literacy. familiarity will eventually translate into economic literacy. Case study newsclips-Case study newsclips-published & accompanied by questions and/or analysis. They are usually complex in published & accompanied by questions and/or analysis. They are usually complex in

their coverage. their coverage. Focused newsclips.Focused newsclips. These are short news excerpts used to illustrate a given economic principle or theory. These are short news excerpts used to illustrate a given economic principle or theory. Reworked news.Reworked news. This is written in the author’s own words with specific acknowledgement of the news This is written in the author’s own words with specific acknowledgement of the news

source. source.

The use of newspaper articles in your teaching will mainly require the use of The use of newspaper articles in your teaching will mainly require the use of focusedfocused and and case studycase study newsclips. newsclips.

2.Coursework2.CourseworkStudents assessed by coursework should be given a case study newsclip and should be required to provide a Students assessed by coursework should be given a case study newsclip and should be required to provide a detailed account of the events described in the article by resorting to economic theory. The analysis should detailed account of the events described in the article by resorting to economic theory. The analysis should break up the article into simple components. Relationships between economic agents, actions and outcomes break up the article into simple components. Relationships between economic agents, actions and outcomes should be established, and an evaluation of the problem should be provided.should be established, and an evaluation of the problem should be provided.

3.Presentation3.Presentation

Assessing students by presentation is not only an effective way of testing their level of understanding, but Assessing students by presentation is not only an effective way of testing their level of understanding, but also helps them develop other transferable skills such as the ability to communicate to a particular audience, also helps them develop other transferable skills such as the ability to communicate to a particular audience, time management and organisational skills. The presentation might require the student to act, for example, time management and organisational skills. The presentation might require the student to act, for example, as a business news reporter who has to analyse, present and evaluate a piece of economic news for a wider as a business news reporter who has to analyse, present and evaluate a piece of economic news for a wider general audience.general audience.

Lecture Method vs Case methodLecture Method vs Case method

Teacher analyses the materialTeacher analyses the material Dominant role of teacherDominant role of teacher Teacher stands between Teacher stands between

student&materialstudent&material While intellectual and While intellectual and

procedural authority (*) procedural authority (*) belongs to the teacher in belongs to the teacher in lecture, teacher and students lecture, teacher and students share it in case discussionshare it in case discussion

Student analyses the materialStudent analyses the material FacilitatorFacilitator

THANK YOUTHANK YOU

““Where the mind is without fear,Where the mind is without fear,and the head is held high,and the head is held high,Where the world is not broken up into fragmentsWhere the world is not broken up into fragmentsby narrow domestic walls,by narrow domestic walls,Where the words came out fromWhere the words came out fromthe depths of truth,the depths of truth,Where tireless striving stretches its armsWhere tireless striving stretches its armstowards perfection;towards perfection;Where the clear stream of reason has not lost itsWhere the clear stream of reason has not lost itsway into the dreary desert sand of dead habits,way into the dreary desert sand of dead habits,Where the mind is led forward by thee intoWhere the mind is led forward by thee intoever widening thought and action -ever widening thought and action -Into that heaven of freedom,Into that heaven of freedom,My father, let my country awake.”My father, let my country awake.”

TEACHERTEACHER

T-TEACHERT-TEACHER E-EDUCATIONE-EDUCATION A-ADAPTABILITYA-ADAPTABILITY C-COURAGEC-COURAGE H-HONESTYH-HONESTY E-ENDURANCEE-ENDURANCE R-RE-SOURCEFULNESSR-RE-SOURCEFULNESS