Formal and Informal Decision-making in Educational Sectors

1) Stakeholders: Stakeholders play an important role in for decision-making

with in the educational sector irrespective of private schools or
government schools. These stakeholders are considered to be one of the
major drivers for the success of educational sector and literacy.
The major stakeholder involved with the educational sector are

 Government along with Ministry of Education, Ministry of Finance (State

and Union both) in case of Funds for Government schools,
 Customers,
 Children who are getting education from the schools,
 Board of Panel/Chairperson/Director in case of Private Schools and
 the Principal and Vice Principal and other Teachers,
 Co-Workers and the Back-End Staff for maintenance of the Schools.
 Board of the State/Union Education (CBSE/ICSE)
These are the major stakeholder who have a direct or indirect impact upon the
business/management of the Educational Sector or in case of a School.

Decision-Making in Educational Sector:

1. Knowledge-Based Approach: Finances are an integral part of the education
sector in India and is a necessary component for the college/schools etc.
Generally, maximum number of schools prepare their annual financial
statements in order to see their intake and expenditures and their revenue gains
for a particular year in order to make some important changes and amendments
to the college policies or to maximise the intake of candidates and increase the
facilities to them. These decision-making reports and charts are prepared by the
accounts Department of the College/Schools. In this way, the decisions are
made in terms of the mathematical data and this is called Knowledge-Based
approach. The following image shows the expenditure figures which is used to
make Decisions for further improvement.
The Union Ministry of Education also keeps an account on its spending’s for a
particular financial year. This report is prepared by a Project Team which is
made by the Ministry to compile the Data and to produce in front of the
Minister. The following image shows the Project Team for the Year 2016-17.

This team is responsible for the findings and to analyse and to present the trends
of the year i.e., determining the contribution in terms of GDP, literacy rate
growth, implementation of policies and schemes etc. Apart from this, there are
other senior management involved in formulating policies and schemes for the
Educational Sectors i.e., Addl. Secretary, Jt. Secretary etc. And these policies
are passed to the Cabinet for the approval of the Government and after the
assent of the Government as well as the President, it is then being executed.
This is one of the formal decision-making process i.e., the full-fledged process
which is followed while formulating policies, changes and decisions are made
within the Government.

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