My experience with experiential learning


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My experience with experiential learning

  1. 1. My Experience withExperientialLearning By, Kaushal Mandalia Management as a main stream require shift from conventional method of learning to experiential way of learning. As a Manager, students need to show their capability to execute tasks and take faster and efficient decisions. Experiential learning will give insight to students which help them to develop wisdom. According to me, Commonsense to an uncommon degree is wisdom, and with experiential learning, I am trying to develop commonsense to an uncommon degree. Insi ghtHR Rajkot 9825300447 Insight HR & Traiing Consultants [Type the fax number]
  2. 2. A Mediocre teacher tells. The Good Teacher explains. The superior teacher demonstrates. The great teacher inspires. William A WardIntroductionIn June 2010, I shifted from Rajkot to Ahmedabad to pursue my dream of being a professional and entrepreneur.In July 2010, I got an opportunity to attend Faculty development program at Excellon Business School. The FDPwas focused on Experiential Learning Methods where I developed course curriculum of Security Analysis andPortfolio Management under guidance of Prof. Devang Patel and Prof Sapre.In August 2010, I started taking lectures in Excellon Business School whereby I have taken an approach ofexperiential learning and the results were pretty good. Later on I used same approach at Proton Business Schooland I found that the Students are very receptive to such techniques and they learn faster.What is Experiential Learning?Experiential Learning is the process of making meaning from direct experience1. Experiential Learning focuses onthe learning process for the individual. An example of experiential learning is going to zoo and learning throughobservation and interaction with zoo environment, as opposed to reading about animals from a book. Thus, onemakes discoveries and experiments with knowledge firsthand, instead of hearing or reading about other’sexperiences.Experiential learning requires no teacher and relates solely to the meaning making process of the individualsdirect experience. However, though the gaining of knowledge is an inherent process that occurs naturally, for agenuine learning experience to occur, there must exist certain elements. According to David Kolb, an Americaneducational theorist, knowledge is continuously gained through both personal and environmental experiences.2He states that in order to gain genuine knowledge from an experience, certain abilities are required: 1. The learner must be willing to be actively involved in the experience; 2. The learner must be able to reflect on the experience; 3. The learner must possess and use analytical skills to conceptualize the experience; and 4. The learner must possess decision making and problem solving skills in order to use the new ideas gained from the experience. University of Texas Learning Centre – HandoutsImplementationExperiential learning can be a highly effective educational method. It engages the learner at a more personal levelby addressing the needs and wants of the individual. Experiential learning requires qualities such as self-initiativeand self-evaluation. For experiential learning to be truly effective, it should employ the whole learning wheel,from goal setting, to experimenting and observing, to reviewing, and finally action planning. This completeprocess allows one to learn new skills, new attitudes or even entirely new ways of thinking.1 ^ Itin, C. M. (1999). Reasserting the Philosophy of Experiential Education as a Vehicle for Change in the 21st Century. The Journal ofExperiential Education,.22(2), 91-98.2. ^ Merriam, S. B., Caffarella, R. S., & Baumgartner, L. M. (2007). Learning in adulthood: a comprehensive guide. San Francisco: John Wiley& Sons, Inc. Insight HR & Traiing Consultants
  3. 3. You can not teach a man anything; you can only help him find it within himself. GalileoI have implemented this concept in a phased manner at Excellon B School and Proton B School and the process ofevolving the results of Experiential Learning is still happening, however this interim paper will give some idea toreaders on the overall effect of experiential learning and how students has taken it.Learning Outcome at Xcellon Business School 1) Students has started predicting the trend for the day 2) Students have started reading market intelligence of Economic Times and effectively using the data. 3) Students has started predicting stock price based on variables like Price Earning Ratio and Price to Book Value Ratio.Learning Outcome at Proton Business School 1) Students have started effectively analyze Mutual Fund Scheme based on Risk Measures like Alpha and Beta and effectively identified the fitment between the Mutual Fund Scheme Purchased by Individual and his risk appetite.Let’s look at the Learning Methods adopted which fulfilled the Learning Outcome at both these Institutions.Prediction of Stock TrendStock Trend for the day has high correlation with the International Market like US, Europe and Asia. Out of thesethree markets, if two are showing the positive trend, its likely that Indian market will open positive. However, thisprediction is limited only to first few trading hours.Future Scope : It must be noted that, one can find the correlation coefficient between Indian Market : USMarket, Indian Market : Asian Market and Indian Market : Europe Market. One can further decide on the filteringmethods based on the value of coefficient of correlations. Apart from that one can even identify the correlationbetween any news event during the day vis a vis the stock price movement. I used, to get the data of World Market. Within the class, I log on to using my laptop and Data-card and help students to find the right section where they can go and identify the world market trend. While writing this article, I have taken data of world market as mentioned in Moneycontrol. It is visible here that at this time, most of the international market is turning red, it might be a chance that Indian Market will open negative. In this case, identifying the stock trend would not only be the learning but will also be the fun for students. And psychology proves, when element of fun is involved, learning is faster. Source : www.Mon m Insight HR & Traiing Consultants
  4. 4. Reading and writing, arithmetic and grammar do not constitute education, anymore than a knife, fork and spoon constitute a dinner. John LubbockUsing Market Intelligence Section of Economic TimesMost often it is observed that students are not comfortable to the last few pages of economic times where mostof the data are printed. I started giving them insight on how to use that data effectively.Price of the stock mentioned in Economic Times- Market Intelligence is a function of Demand and Supply. In stockMarket where supply is constant, Price can be directly influenced by Demand. In stock market, once can rig theprice by generating artificial demand. Though Security Exchange Board of India is taking all steps to removeartificial rigging but still there are loopholes. Once can find such stocks where artificial rigging is visible. Thesestocks can be identified in ‘Market Intelligence’ Section of Economic Times.To find out such stocks, you need to compare two tables mentioned in Economic Times. One is ‘Bulk Deals inBSE/NSE’ and other is “Spurt in Volumes at BSE/NSE.” Bulk deals are normally responsible for spurt in volume. Butif you closely match these two tables you may find some stocks which are mentioned in ‘Spurt in Volume’ sectionbut not mentioned in ‘Bulk Deal’ section. These are stocks which are operator driven. Such an insight can behelpful to students. Once they find the importance of Economic Times, it creates interest and then they closelywatch such sections.Stock Prediction based on Fundamental AnalysisVariables Used: Price Earning Ratio and Price to Book Value Ratio.Price Earning Ratio: PE ratio of stock is a measure of price paid for a share relative to the annual profit earned bythe firm per share. A higher PE ratio means that investors are paying more for each unit of net income, so thestock is more expensive compared to one with lower PE ratio.Price to Book Value Ratio: It is used to compare company’s book value to its current market price. Book value isan accounting term denoting the portion of the company held by the shareholders; in other words, the company’stotal tangible assets less its total liabilities. If PBV ratio is greater than one, then the company is overvalued as theprice per share is higher than the net worth per share, and if its less than one, then the company is undervalued.To carry out the experiential learning based on the fundamental analysis whereby learning outcome is stockprediction, we have used SENSEX at January 2008 as benchmark. We compared the stocks of Sensex during Jan2008 and Sept 2010 and compare their PE ratio.Here we assume that 1) Price of the share is directly in correlation with the EPS (Earning Per share) of the stock in consideration. 2) In any given year, price will be in equilibrium with the EPSWe formed our learning as 1) For any stock, we can give buy recommendation if its PE in year 2010 is lesser than PE in year 2008. Which means the Current Price in 2010 has increase potential and it can go up to the extent where it can match its value of Jan 2008 where sensex was at the highest (Sensex Level was 21000 in Jan 2008) 2) For any Stock, we can give sell recommendation if its PE in year 2010 is higher than PE in year 2008. Insight HR & Traiing Consultants
  5. 5. You can teach a student a lesson for a day; but if you can catch him to learn by creating curiosity, he will continue the learning process as long as he lives. Limitations 1) This analysis is a very preliminary analysis and has limitations. It uses only one or two variables where one can increase the scope of analysis by introducing more variables 2) We have not taken Co-efficient of Correlation between Stock Price Movement to Sensex Movement into consideration. 3) We have not taken into consideration, the technical analysis which can predict the stock price in short term. 4) We have not considered the latest news and balance sheet analysis (like receivables, reserves etc) and experts opinion into consideration. Once can relax the limitations and add more variables and take this analysis to the next stage. Outcome Below are the recommendations given by the students at Excellon B School on 17th Sept 2010. Stock Recommendations by Students We have adopted Price BUY Recommendations Forecasting based on PE Current Highest ratio analysis applied to Market Target Value of all 30 stocks of SENSEX. As Stock % Proximity we have taken all Blue Price on Price given Stock Till 17th Sept Date Chip stocks, we assume that their financials areACC 978 1050 1030 98% fundamentally sound,Bharti Airtel 347 415 372 90% hence the stock isCIPLA 305 325 363 112% analyzed in terms of theICICI Bank 1103 1247 1136 91% profitability potential vis aJaiprakash vis price potential and theAssociates 122 200 179 90% recommendations are formed. AllNTPC 206 280 241 86% recommendations areReliance Industries 1000 1165 1150 99% given by students withoutReliance Infra 1053 1320 1192 90% any influence of faculty.State Bank of India 3100 3200 3156 99%Sterlite Industries 170 210 175 83%TATA Steel 596 700 615 88%WIPRO 423 450 404 90%TATA Power 1263 1298 1320 102% We have restricted our study to only 30 scripts of Sensex and out of 30, students has given buy recommendations of 13 stocks. In two cases we found that the target price has met. However, the limitation of stock tips based on fundamental analysis is that we can not identify the right timing during which target price can met. Out of 13, if 2 stock met its target price in 6 days (15% conversion ratio) is a sign of good analysis. Insight HR & Traiing Consultants
  6. 6. I am always ready to Learn, Although I do not always like being taught, Winston ChurchillConclusionOne and half month (1st Aug to 17th Sept) is a very limited period to exercise Experiential Learning Techniques andMethods; however I felt that the results were encouraging. Students developed much more interest in highlytechnical subject like ‘Security Analysis and Portfolio Management’. I feel the need of further exploration of themethods and techniques to evaluate the student interest and map with the examinations and evaluation.I have taken a new approach and I am sure there is huge scope of modification and improvement. Eachmodification and improvement further improves the quality of experiential learning and help students to graspthe concepts easily.Profile of AuthorName: Kaushal Mandalia⇒ 10 Years of successful work experience in Sales, Distribution and Operations. Worked in Insurance Industry for 6 Years in Tied and Alternate Channels and Now a Full Time Corporate Trainer and Visiting Faculty⇒ 4 Years of Teaching Experience as a Visiting Faculty in Various Management Institutions.⇒ Engineering Graduate with Post Graduation in Management with throughout First Class Marks.⇒ Certified as an Associate Financial Planner (AFP) in the areas of “Risk Management & Insurance Planning”, “Retirement Planning & Employee Benefit” AND “Investment Planning”.⇒ Attended International Conference as a SPEAKER on “Credit Crisis – Suggested Remedies”.⇒ Published Articles in National and International Magazines.Visiting Faculty / Guest Lectures Taken at 1) Excellon Business School - Ahmedabad 2) Proton Business School - Ahmedabad 3) Chaudhari Institute of Technology - Gandhinagar 4) Atmiya Institute of Technology - Rajkot 5) Knowledge Gurukul Institute of Business Management - Rajkot 6) Gardi Vidhyapith - Rajkot 7) T N Rao Institute of Management Studies - Rajkot 8) R D Gardi Institute of Management Studies - Rajkot 9) Jaisukhlal Vadher Institute of Management Studies - JamnagarContact DetailsEmail : Insight HR & Traiing Consultants