Memorandum 18
Submission from the Chartered Management
Institute
1. SUMMARY
1.1 The Chartered Management Institute welcomes
the opportunity to submit brief written evidence to the Innovation,
Universities and Skills Select Committee as part of its inquiry
into Funding for Equivalent or Lower Qualifications (ELQs).
1.2 Analysis shows that the proposed ELQ
funding changes will disproportionately affect those studying
management on a part-time basis. This is particularly disappointing
given that the previous Education and Skills Committee's report
on Post-16 Skills had highlighted how a stronger focus is needed
on developing management skills per se-an area identified as particularly
weak in the UK and largely neglected to date in policy (Volume
1, para 8).
1.3 These policy proposals do not appear
to recognise that management is often a secondary discipline that
experienced employees will study on a part-time basis, at an equivalent
level to their initial specialist subject area, having been promoted
into a position where they take on new management responsibilities.
1.4 It is an established route of career
progression for individuals to take a management degree as a second
degree, at both Undergraduate and Postgraduate levels. In many
cases employers are already providing support in terms of granting
time off for study leave, rather than by direct funding.
1.5 It is a key concern that many of the
institutions who have done the most to widen participation to
those already in the workplace, in terms of part-time courses,
are likely to be hit hardest by the ELQ funding reforms. As the
leading professional body for management and leadership, the Institute
works closely with 200 universities and FE colleges in the UK
to help deliver high quality management education, and many of
these educational partners are likely to be affected.
1.6 We believe that it should continue to
be a high priority for public funding to help support and encourage
those seeking higher level management skills that are of critical
importance in driving UK's competitiveness.
2. DISPROPORTIONATE
IMPACT ON
PART-TIME
MANAGEMENT STUDIES
2.1 The HEFCE modelling of the withdrawal
of funding for ELQs by subject, mode and level clearly demonstrates
the impact on management qualifications. Table 1 of this modelling
shows that of the overall 52,504 students to be negatively affected
by the proposed changes, 9,776 (19%) will be those studying business
and administration. The more detailed breakdown by level indicates
that of the 9,776, the majority of those affected will be those
studying on a part-time basis (7,211 students). This is a disproportionate
number compared to any other subject listed.
3. FAILURE TO
RECOGNISE MANAGEMENT
AS A
"STRATEGICALLY IMPORTANT
AND VULNERABLE
SUBJECT"
3.1 The Chartered Management Institute welcomed
the Leitch recommendations and the Government's Leitch implementation
plan "World Class Skills" for a much greater focus on
higher-level "economically valuable skills". The Leitch
Report recognised the high levels of demand for management skills
and the growing evidence base demonstrating the strong links between
the impact of management skills and increased national competitiveness.
The productivity gap between the UK and other leading nations
has proved an intractable issue for successive governments. The
Leitch Report suggested that up to 20% of that gap is now attributed
to skills provision and up to 15% to management practices.
3.2 We believe that the Government must
continue to focus on higher level professional skills, which in
their practical application will have the greatest impact on both
performance, and also on leveraging the rest of the skills agenda.
Professional managers play an essential role in developing strategies
for workforce development. A greater number of highly qualified
managers are more likely to ensure that their teams are adequately
trained and can help to embed a culture of learning and development
that helps drive performance.
4. NEED TO
ADDRESS LOW
NATIONAL LEVELS
OF MANAGEMENT
SKILLS
4.1 Given this strategic importance of management
skills recognised by the Leitch Review of Skills, the UK's management
population is significantly under qualified: "41% of managers
hold below a Level 2 qualification" (Box 5.1). Furthermore,
Labour Force Survey data (March-May 2002) indicates that just
38.5% of managers and senior officials are qualified at NVQ level
4 or above compared to 80.9% of those in other professional occupations.
(Leitch's Interim Report). This level should be viewed as untenable
given the UK's ambition to shift to a high skills, high added-value
economy.
4.2 However, the Leitch analysis did not
go on to identify the additional point that most managers lack
qualifications related to their profession as managers. Too many
remain what can be termed "accidental managers"-highly
skilled specialists or technicians who are promoted to management
positions on the basis of their technical or specialist skills,
not because of their suitability for a management role.
4.3 The Final Report of the Council for
Excellence in Management and Leadership (2001) concluded that
on a "rough estimate . . . the proportion of managers with
management related qualifications will not get much above 20%
in the longer term". This estimated level of only 20% of
managers being qualified is unacceptable given that it already
takes into account both a strong growth in specific management
qualifications, such as a 20% growth in first degrees in business
and management studies, and also the fact that the number of management
NVQs has remained fairly static.
5. ELQ POLICY
RUNNING COUNTER
TO DEMOGRAPHIC
TRENDS
5.1 There are currently 4.6 million managers
in the UK (Working Futures 2004-2014). This is a higher
number than previously estimated, indicating a larger employment
share for managers and senior officials-of 15.3%. They now comprise
the largest occupational group in the working population, and
the management population is forecast to grow by a further 617,000
by 2014 alone. Given the growing recognition of the need for skilled
managers and leaders, this growth is expected to be at a greater
rate than previously anticipated. Leitch's Report's acknowledged
this trend, yet future skills funding does not appear to take
account of this.
5.2 As explored by the Leitch Review in
Chapter 3 of the Interim Report, the UK's management population
will face major replacement demands due to demographic change.
This makes it imperative that skills policy helps develop workplace
skills throughout working life. Since around 70% of the workforce
of 2020 has already completed compulsory education, and high exit
levels will be experienced due to factors such as retirement,
it is important that people already in employment or in junior
management posts are supported to develop their skills and competencies,
so that they can progress their management careers.
5.3 The impact of the proposed withdrawal
of ELQ funding for those studying management runs counter to encouraging
a growing sector of the working population to develop the specific
work-oriented management skills necessary for success.
January 2008
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