The Department of Consumer Affairs recently issued a press release where they informed the general public that a refund of more than 1 crore was issued to students of various coaching institutes.
The data shared by the press release showed that the number of complaints registered by students with the National Consumer Helpline(NCH) has increased over the years.
This post talks about this new “seller-consumer” dynamic between students, teachers and coaching institutes. It will try to discuss how all parties need to change their outlook towards education and debate whether “education” can fit in a capitalistic system.
The Ancient Education System
Education in the times of kings and queens revolved around one’s religion and one’s vocation. You received knowledge of your religion from the place of worship: temples, mosques and churches. And you received knowledge of your family vocation either from your family members or a school designated specially for that vocation. Some schools combined the two things and taught religious practices and a particular earning skill.
Education at that time was not considered a business. It was a responsibility. You had knowledge and had some skill. It was your duty to impart that knowledge to the next generation. The relationship between a teacher and a student was considered sacred and was based on respect and learning. In some cases, a student listened more to his teacher than his/her own parents.
The economics of running an “institute” was pretty straightforward: The goal was to connect students with nature and God. So, schools were run either near nature(rivers, jungles etc.) where students got to learn about plants and animals or in a religious place where they learnt about their God. Students would clean their place of study, would go out to collect raw materials for food and wood for fire, come back and help in cooking as well. The place of study was run by the people who were studying there. Doing these jobs was considered part of their education. It was considered normal for the parents to donate money and other things to the places where their kids studied. So, the cost of running a school was low in the first place and if something was needed for the school, it was fulfilled via donations from kings and the rich people of the society.
Education system post Independence
Once the whole kings and queens system ended, governments started controlling the education system. First, the British brought their education system to India. They decided what was to be taught in schools and colleges. Post Independence, the Indian government opened schools and colleges and established institutions for deciding the curriculum.
In this system, the education boards decided the syllabus of the school. The money to run these schools was provided by the governments. Organizations were established at various levels to monitor the functioning of these government schools and colleges. They answered to different government bodies. These bodies evaluated the performance of the schools and colleges under them. There was a clear separation between the students who studied, the teachers who taught and the administrators who ran the schools and colleges.
Education system post liberalization
India in the 90s saw an influx of money from outside the country. A lot of sectors that were not accessible to private players were opened for them. Education sector was already accessible to private players even before the 90s. But, liberalization brought an influx of money and cultural change like never before. People saw foreign products on their TV and in the markets. The dream of visiting a foreign nation was born at a large scale. People realized that English will have to be the primary medium of education. The middle class grew and their demand for a better education infrastructure also grew.
This resulted in a lot of private schools and colleges in the country. Private players put in a lot of money in buying land and building the infrastructure of an educational institution. But, they had one challenge that was different from their predecessors: Getting money to run the institution. Earlier kings gave away money, then, governments gave money. But, the private players didn’t have such sources. So, the school fees became their primary source of income. And this resulted in the commercialization of education.
School fees kept increasing at a rapid pace. It is estimated that the current education inflation is somewhere around 11-12% (compared to 7% inflation for other commodities). This increase has resulted in a gradual shift in people’s relation with education and how they perceive it. More on this in the next section.
Private tuitions and coaching
The old mindset of parents was to send kids to school for a simple education, then college for a degree and ultimately settle down with a job.
Now, the mindset is: send to school, then, private tuition for weak subjects, then, classes for extra curricular activities. Once 10th is done, send it to a coaching to prepare for entrance exams of engineering, medical or accounts exams. Then, during college as well, students join private coaching to learn extra stuff or prepare for exams like GATE, CAT etc.
There are so many exams to crack these days and the competition is so tough that traditionaling schooling seems insufficient. No matter how much the government claims this to be false, the questions asked in entrance exams cannot be solved with the knowledge imparted in schools.
Private tuitions and coaching has come out as the answer for these problems. Entire cities like Kota have seen growth in their economy because of the coaching system.
The difference in this system from traditional schooling is that the goal is to clear an exam at any cost. No one wants to focus on “learning” the concepts of Physics, Chemistry, Math, Biology, Accounts, Finance, etc. If the exam is cleared, the goal is achieved. This has resulted in a different relationship between students and education.
Student as the Consumer. Coaching as the Vendor.
Education is now a service that is being sold in the market. Students are the consumers of that service. The tuition and coaching institutes are the vendors. Parents now see themselves paying money for a service. If they don’t get the desired outcome, they go after the service provider.
We are seeing an increase in the number of coaching institutes across the country. The number of students has also increased year after year. So, in business lingo, there is ample demand and supply for education. But, this does not mean that not all service providers will do quality work. An increase in educational institutions does not mean that the quality has improved. It only means that there are a lot of players interested in providing education. But, no one is monitoring the quality of teaching. There are bound to be some bad apples.
There are 3 players in this system: Students, teachers and management that runs the institute. In some cases, the management will not do a good job of hiring good teachers. In some cases, the teachers won’t do a great job of imparting knowledge. And in some cases, students won’t feel like studying the subjects they are supposed to study. If one of the players doesn’t perform their designated role, the outcome won’t be satisfactory.
With cases being reported of unsatisfactory service, the management that runs the institute is now at the center of attention. Teachers not being able to teach their subject and students not able to study the topics is a skill issue. But, management not being able to provide the promised courses and not being able to hire quality teachers is a clear lapse in the service. Such incidents fall in the domain of the Dept of Consumer Affairs.
Here are some ways to improve student satisfaction (read: customer satisfaction) and avoid getting the government involved in your business:
- Clarity on your “Why”
If you are a businessman who sees coaching as a money-making opportunity, you are in for a surprise. At the end of the day, if students don’t clear exams, there will be no new students coming in. Your success will depend on students and teachers producing results. So, your why needs to involve helping students and teachers in some way.
- Student centric policies
A typical business philosophy is improving customer satisfaction. In this case, our customers are students. Your institute's policy should focus on improving the lives of students. Are the classrooms well lit and ventilated for studying? Are there too many students in a batch? Do students need a place to do self-study in the coaching center? Every decision that you take, from the design of your classrooms to the teachers that you hire, should prioritize the benefit of the students.
- Transparency
Invest in tech like SMS and email services that allow you to inform students and parents of any changes in your institute. Indians are not used to transparency. By communicating promptly with your students, you will establish a sense of trust with them.
- Exam Results are a by-product of hard work
Your entire team needs to live by this philosophy. Once that happens, students will subconsciously receive the same message. There is no magic trick to get results. If your team focuses on the benefit of students and builds an environment that encourages learning, the results will automatically be in your favour.
It’s very natural to focus on the business side of things. It’s easier to do business when your product is sold in the market and you never have to face any consumers. But, running a coaching business is a different beast. You see students and parents every day. The business model needs to be student centric.
Students are not idiots. They know when an institute is focused on their success and when an institute is focused on earning money. Your institute’s culture, the behaviour of your staff and teachers automatically shows where your focus lies. Based on these hidden signs, students either feel safe or betrayed in your coaching. If they feel betrayed, sooner or later, someone will complain to the government about lack of services and you will have to defend your business in a court of law. But, if they feel safe, you will never see any government official knocking on your doors. In fact, word of mouth will spread and more students will join your institute.
If you are running an institute and looking to increase your reach, consider listing it on gurunearme.com.
