Prof D. Mukhopadhyay
The Indian Institutes of Management (Amendment) Bill 2023 [Bill No. 109 of 2023] has been introduced to the Lok Sabha by Minister of Education, Government of India, on 21st July, 2023 in terms of the major objectives statement No. 3 justifying the Amendment in IIMA Act, 2017 to include the National Institute of Industrial Engineering (NITIE), Mumbai, in the IIM (Indian Institutes of Management Group of Institutes and change its name to IIM, Mumbai, is based on several compelling reasons. NITIE, established in 1963 by the Government of India, is a premier institute renowned for its techno-managerial strength and significant contributions to the country’s economic growth. However, despite its remarkable achievements, NITIE has faced certain challenges due to its current status. Here are some key factors that justify the proposed inclusion and name change, which include aligning NITIE with the IIM Brand in order to boost its reputation, attract more talented students, and enhance its competitiveness in the academic landscape, Secondly, granting Degree-Awarding Authority as NITIE currently awards Postgraduate Diplomas being the limitations faced by NITIE despite being among the top management institutes in the country. This has adversely affected the prospects of students and stakeholders of the institute. By becoming part of the IIM Group of Management Institutes, NITIE will come under the purview of the IIM Act, which allows IIMs to award degrees. This change will enable NITIE to issue degrees similar to other IIMs, thus removing the barriers that have been hindering its growth. By becoming IIM, Mumbai, NITIE will gain global visibility and be able to compete on a larger stage, contributing to India’s reputation as a destination for quality management education. In light of the compelling rationale presented for the name change of NITIE, Mumbai, the government of India should consider and approve the proposal to rechristen the Institute of Cost Accountants of India as the Institute of Cost and Management Accountants of India (ICMAI).
The parallel drawn with the inclusion of NITIE Mumbai in the IIM Group and the subsequent change of its name to IIM, Mumbai, further strengthens the case for embracing the broader scope and strategic significance of the cost and management accountancy profession. The proposed name change is more than just a symbolic gesture; it is a progressive step towards aligning the profession with global best practices and evolving demands in the fields of finance, accounting, and management. By adopting the name ICMAI, the Institute will emphasize its commitment to producing highly skilled and well-rounded professionals capable of not only cost analysis but also strategic decision-making and managerial responsibilities. Just as NITIE Mumbai’s inclusion in the IIM Group would obtain its long due recognition of its earned reputation for its contribution for last 60 years and the name change to ICMAI would have a transformative impact on the Institute of Cost Accountants of India. It will enhance the institute’s identity and reputation, making it more appealing to aspiring students, potential employers, and international collaborations. Just like NITIE, Mumbai, the current name, “Institute of Cost Accountants of India,” fails to encompass the full scope of the profession and misrepresents the modern roles and responsibilities of CMAs. The term “Cost Accountant” implies a limited focus on costing and does not reflect the broader managerial and strategic functions that CMAs perform in today’s dynamic business environment. As a result, the institute and its members face several challenges. The current name does not accurately represent the profession’s depth and contributions, leading to a lack of recognition among employers, businesses, and society at large. This hampers the career prospects of cost accountants and the perceived value of their services. In the international arena, management accountants are well-regarded for their analytical and strategic expertise. By not reflecting the term “Management Accountants” in its name, the Institute fails to align itself with global standards and best practices. In recent years, the responsibilities of cost accountants have expanded significantly. Today, CMAs play key roles in financial management, risk analysis, budgetary control, and performance management, among others. The name ICMAI aligns with global best practices, resonating with international employers and organizations. This alignment will enhance the recognition of Indian CMAs globally, making them more competitive in the global job market.
The name ICMAI reflects the ability of CMAs to provide strategic insights, support decision-making, and contribute to overall organizational success . Renaming the institute as ICMAI will align it with this trend and position it as a progressive and dynamic institution that keeps pace with evolving educational practices. The name ICMAI has a modern and dynamic appeal, likely to attract a broader pool of aspiring students. This will result in a more diverse and talented group of individuals pursuing a career as Cost & Management Accountants, enriching the profession with fresh perspectives and ideas. A name that aligns with international standards will enable better integration with global accounting and management practices, opening up opportunities for CMAs in the international arena. The demand to rename the Institute of Cost Accountants of India to the Institute of Cost and Management Accountants of India has been long-standing, with a request pending with the Ministry of Corporate Affairs since 1972. The Parliamentary Standing Committee on Finance has accepted the recommendation thrice to effect the name change, yet no action has been taken. The current name’s stagnancy has resulted in a bleak future for the Institute’s 6 lakhs students and 90,000 members and other stakeholders.. The outdated name hinders their career growth and professional opportunities, creating an urgent need for change. The Institute of Cost Accountants of India, with its significant contribution to nation building, deserves a name that reflects its true identity. The Bill No 109 of 2023 dated 21st July, 2023 for inclusion of the National Institute of Industrial Engineering, Mumbai, into the group of IIMs serves as a powerful example of the transformative power of renaming institutions to secure their future and better serve their stakeholders. It is time for the government of India to show the same commitment and impartiality towards the scope and development of the careers of cost accountants and their students by approving the long-pending name change and paving the way for a brighter future for the CMA profession. The Institute of Cost Accountants of India, formerly known as the Institute of Cost and Works Accountants of India, has been a prominent professional body contributing significantly to India’s economic growth and development. It plays a crucial role in shaping the country’s financial landscape. However, the Institute’s outdated name has become a hindrance to its progress and the well-being of its stakeholders. The success story of the National Institute of Industrial Engineering, Mumbai, highlights the transformative power of renaming institutions to adapt to changing times and secure their future. It is time for the government of India to take a proactive and impartial stance, consider the long-pending request, and empower the stakeholders of ICMAI with a name that benefits from their invaluable contributions to efficient resource management and effective decision making by the management.
The proposal to change the name of the Institute of Cost Accountants of India to the Institute of Cost and Management Accountants of India (ICMAI) is a forward-looking decision that reflects the evolving nature of the cost & management profession. By embracing this change, the government of India can pave the way for a more empowered, globally recognized, and strategic cost and management accountancy profession, contributing to the growth and development of the nation and its economy. The field of Cost and Management Accountancy has evolved significantly over the years. CMAs now play multifaceted roles, encompassing not only cost analysis but also strategic decision-making, financial management, performance evaluation, and risk assessment. By renaming the Institute to the ICMAI, the profession’s true essence will be captured, aligning it with contemporary practices and acknowledging the expanded responsibilities of CMAs. The phrase “Works Accountants” in the previous name, “Institute of Cost and Works Accountants of India,” referred to a specific aspect of cost accounting related to factory and production costs. Over time, the scope of the profession has expanded beyond this narrow definition. By renaming the Institute to ICMAI, the historical discrepancy will be addressed, and the Institute will better represent the comprehensive nature of the profession. The recognition of “Management Accountants” in the name will give assurance to stakeholders that CMAs possess the expertise required to make informed decisions and drive organizations towards success. Since 1944 and the enactment of the CWA Act, 1959, CMAs have been playing a pivotal role in cost efficiency, resource optimization, project appraisal, budgetary control, investment decision-making, and policy formulation. Their expertise has been crucial in strengthening the nation’s financial health, promoting economic growth, and contributing to overall nation-building efforts. Several countries, including India, have recognized the importance of adapting to changing times and embracing globalization by renaming institutions, cities, and even themselves. These name changes reflect their commitment to modernization, inclusivity, and global integration and some notable examples include Myanmar (formerly Union of Burma) , 1989, Zimbabwe (formerly Rhodesia)1980, Kazakhstan (formerly Kazakh Soviet Socialist Republic)1991, Sri Lanka (formerly Ceylon)1972, Istanbul (formerly Constantinople)1930, Mumbai (formerly Bombay),1995 and so on .
These instances demonstrate that countries around the world have recognized the significance of renaming to reflect their evolving identities, cultural heritage, and aspirations for global engagement. By embracing change and adapting to modern times, these countries have strengthened their positions on the global stage and signaled their commitment to inclusivity, diversity, and progress. Similarly, renaming the Institute of Cost Accountants of India to the ICMAI would align with the profession’s expanded scope and recognition in the contemporary world of accounting and business management in a similar way of change to the Chartered Institute of Management Accountants (CIMA), UK. CIMA, a professional body for management accountants, was originally known as the Institute of Cost and Works Accountants (ICWA)1919, UK , ICMA, 1972 UK and in 1986, the institute changed its name to The Chartered Institute of Management Accountants (CIMA) to reflect its broader scope beyond cost accounting and others followed other such as the Institute of Certified Management Accountants of Sri Lanka (CMA, Sri Lanka), in 2009, the CMA Act was enacted in the Parliament of Sri Lanka, change to the Institute of Management Accountants (IMA), USA, a leading global association for management accounting professionals, was originally known as the National Association of Cost Accountants(NACA), 1919, National Association of Accountants (NAA)1957, and the Institute of Management Accountants(IMA), 1991, USA. to better represent the profession’s emphasis on strategic decision-making and management-related functions and contemporary professional developmental road map. By doing so, these institutes have strengthened their identities and relevance in the ever-changing business landscape, which substantiates the recognition and importance of the Cost & Management Accountant designation as a distinct qualification focusing on management accounting, strategic decision-making, and business leadership. The rationale for this name change is compelling and supported by the experiences of other institutes worldwide. The current Central Government is forward-looking, dynamic and progressive in embracing modern technology, tools and techniques and therefore, it is recommended that the government of India should initiate an approval process of rechristening the Institute of Cost Accountants of India to ICMAI in a similar line of action taken in case of change of NITIE, Mumbai to IIM, Mumbai .
(The Author is a Bangalore-Based Educationist and Management Scientist)
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