Proper management vital to drive economic growth - Dr. Amunugama

Proper management is an essential component to drive economic growth. Most developing countries are still lagging behind in growth due to inefficient management, said Minister of Public Administration and Home Affairs Dr. Sarath Amunugama.

He was addressing the launching ceremony of the Prospectus 2007 of the National Institute of Business Management (NIBM) and the meeting with Human Resource Managers at the Waters Edge Hotel on Thursday.

Dr. Amunugama said business management in a highly competitive and advanced world is an indispensable factor that cannot be taken in lighter vein. Be it private or public sector organisations their progress depends on how effectively they manage their businesses.

He said the economic focus of the country has shifted from an agriculture to industry based development which require efficient management.

It is the industrial and service sectors that contribute to the economy. The contribution of the agricultural sector has dropped. The younger generation do not want to get into paddy fields or tap rubber any longer. They prefer to seek white collar jobs in an industry with more prospects.

The agricultural sector cannot be sidelined since it has been traditionally the mainstay of the economy with a large workforce. The private and public sector will have to play a major role to develop the agricultural sector.

Dr. Amunugama said the school and university education system is facing a severe crisis since it is not catering to the needs of the society. Business management is not treated as a professional subject either in schools or in universities. Private institutions provide management training and conduct degree programs for students who look forward to face future challenges, he said.

Today big multinational companies have failed due to management problems. This scenario is even visible in most State institutions though not to the same extent in the private sector, he said.

He said that what is important is how well an organisation is managed and not whether it is a private or public sector venture. It is not who manages but how it is managed is the question that employees should ask.

No institution is owned by a single person. It is a collective ownership by way of shares. Therefore, it is the responsibility of all to contribute their best and not demand for their rights. Dr. Amunugama said we must put side past and petty minded slogans and work towards becoming good managers to which the world is fast moving at.

Chairman NIBM, Prof. Lakshman Jayatilleke said the institute will be equipped to prepare students in the finance, accounting and management fields to meet future challenges.

Students will be provided a sound training in English to be conversant and effective in communication. A wide range of academic programs from basic courses to degree level will be offered to students, he said.

The academic programs will not be confined to Colombo but also to the other provinces as well targeting the SME sector. The NIBM will provide professional training, research and advice to organisations, Prof. Jayatilleke said.

(LF)