Competency development in business graduates: An industry-driven approach for examining the alignment of undergraduate business education with industry requirements
Introduction
The topic of Quality in Higher Education has received significant attention over the past two decades, with many contributions suggesting how quality should be defined and measured within an educational, service-oriented context (Finnie & Usher, 2005; Garvin, 1984; Harvey & Green, 1993; Van Kemenade, Pupius, & Hardjono, 2008). Regardless of progress made, questions remain as to how well institutions of Higher Education prepare graduates to meet the challenges, in constantly evolving and demanding work environments (Hills, Robertson, Walker, Adey, & Nixon, 2003; Rubin & Dierdorff, 2009). Some suggest that undergraduate business education is failing to adequately prepare graduates for today's workplaces (e.g., Andrews & Higson, 2008; Jackson, 2009b; Washer, 2007).
Many societies, since the 1980s have embraced the notion of graduates' ‘work-readiness’ (i.e., graduate employability) as a means to promote national competitiveness in the global economy. However, concerns remain that undergraduate programmes may not be equipping students with the key skills needed to gain and maintain employment (Cranmer, 2006; De La Harpe, Radloff, & Wyber, 2000). One reason for the perceived lack of graduate employability appears rooted in the degree of mismatch between skills acquired in higher education versus those required for employment (Mason, Williams, Cranmer, & Guile, 2003; Wilton, 2008).
We intend to provide insights into the important and growing concern of graduate employability. While there is significant debate as to the exact nature and extent of graduates' skills gaps, empirical evidence suggests that employers around the world continue to be concerned about new graduates' ability to meet current and future workplace requirements (McQuaid & Lindsay, 2005; Jackson, 2009b).
This empirical paper addresses the lack of alignment between the competencies developed in business education programmes versus those needed in early industry jobs. Graduates and their employers were asked to provide insights on the required competencies identified for industry jobs within a large EU-funded project (Azevedo, Gomezelj, Andrews, Higson, & Caballero, 2008).
The initial list of competencies was created through literature review and then refined through qualitative interviews with a small sample of graduates and employers. A larger sample of employers and recent business graduates were then surveyed (i.e., those who completed an undergraduate business management programme or a vocational training/further education programme within the past five years) in order to validate the key competency cluster. The survey asked undergraduate business alumni and their employers to comment on what they believed to be the most important competency requirements for effective work performance at early career stages (i.e., competency profiling – a process through which the competencies needed to perform a job or career effectively are identified; Armstrong, 2000; Kagaari & Munene, 2007). Respondents were asked to comment on how valuable or useful they found the cluster of key generic competencies to be for predicting recent graduates' performance in early career job activities, as well as how relevant such competencies were for future career development.
Study results offer some interesting insights at the juncture of two sets of ideas not well addressed in literature, i.e., competency assessment of alumni who have recently completed undergraduate business management programmes and investigation of industry requirements related to entry-level positions for the management profession (Jackson, 2009a). It is our contention that information regarding how capable business graduates are perceived to be in each of the competencies identified, if studied systematically (every two to three years), could significantly assist Higher Education institutions in identifying issues, adjusting and aligning curriculum to address existing competency gaps in early stages of employment. The conceptual framework of value, relevance and capability proposed herein promises both theoretical and practical benefits on the topic of graduate employability (Azevedo, Gomezelj et al., 2008). Further, subsequent research on competency development using this conceptual model with a longitudinal design will enhance our insights on where and how individuals develop competencies that align with industry expectations and in doing so, close the value, relevancy and capability gap.
We present our ideas in the following four sections. We begin with background literature to identify the research problem. Second, we provide a detailed overview of the study methodology including design and implementation within the context of a larger 2-year, EU-funded project with nine partner institutions in four European Countries (Austria, England, Slovenia and Romania). Third, we discuss key study findings and interpretations in the Analysis section. We conclude the paper with important recommendations for future research and curriculum improvement.
Section snippets
Graduate employability
Institutions of Higher Education continue to face growing demands for accountability, transparency and comparability, due in part to external factors (e.g., tougher global competition, changing customer needs) and internal factors (e.g., quality management initiatives, internationalization efforts). Over the past two decades, these pressures have contributed to a major paradigm shift in quality assessment efforts in many OECD countries putting more emphasis on outputs and learning outcomes,
Project overview and purpose
Our industry-driven approach to measuring required competencies of business graduates was developed and tested within the context of a two-year EU-funded project on the topic of Quality in Higher Education. The project, entitled MISLEM, included nine partners from four European countries (Austria, the UK, Slovenia and Romania) and it was implemented between 2005 and 2007. A diverse group of project partners was composed of four Higher Education institutions, two Institutions of Further
Analysis
We begin this section with a short explanation of our decision to combine graduate and employer groups in the data analysis. We then discuss key survey findings and interpretations derived from the last phase of the project (i.e., critical/analytical).
Conclusion
In spite of growing concern from employers around the world regarding business graduates' ability to meet current and future workplace demands, there has been little research addressing competency development within the context of undergraduate business education (e.g., Casner & Benner, 2006; Jackson, 2009a; McQuaid & Lindsay, 2005; Washer, 2007). Although a few conceptual frameworks have been proposed for the development of competencies within MBA programmes (e.g., Boyatzis, 2009; Dierdorff
Acknowledgement
The authors would like to thank the European Commission (Leonardo Da Vinci Programme) for the financial grant and technical assistance provided for the design and implementation of this project.
Ana Azevedo is an Assistant Professor of Entrepreneurship in the Faculty of Business at Athabasca University, in Edmonton, Alberta, Canada. Prior to her relocation to Canada, Dr. Azevedo taught at Florida International University (during her doctoral studies), the University of Texas in El Paso, Florida A&M University and the University of Applied Sciences FH Joanneum (in Austria). Dr. Azevedo's research interests include management education, international entrepreneurship, cross-cultural
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Ana Azevedo is an Assistant Professor of Entrepreneurship in the Faculty of Business at Athabasca University, in Edmonton, Alberta, Canada. Prior to her relocation to Canada, Dr. Azevedo taught at Florida International University (during her doctoral studies), the University of Texas in El Paso, Florida A&M University and the University of Applied Sciences FH Joanneum (in Austria). Dr. Azevedo's research interests include management education, international entrepreneurship, cross-cultural management issues, migration, and narrative research.
Gerhard Apfelthaler is a Professor in International Business and Associate Dean for Graduate Programs at the School of Business at California Lutheran University. Prior to that, he chaired the Department of International Management at FH Joanneum University of Applied Sciences and the Department of International Business Studies at FHS Kufstein, both in Austria. Before joining academia, Dr. Apfelthaler was a diplomat in Austria's Foreign Commercial Service with postings in the United States and in Singapore. He has published several books and numerous articles.
Deborah Hurst is an Associate Professor – Work and Organization Studies and Associate Dean, Faculty of Business, Athabasca University, in Edmonton, Alberta, Canada. Deborah's research interests include management education, the development and transfer of knowledge and soft skills in online environments, leadership development, institutional entrepreneurship, and cultural organization change.