Proceedings of 29th International Business Research Conference
24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia , ISBN: 978-1-922069-64-1
Comparison between a Finnish Business polytechnic and an Australian
University degree was undertaken to compare industry skills development. . Interviews were conducted with stakeholder groups in
Finland to understand the framework. The Finnish approach is to bring the industry to university through a problem based learning approach.
This produces job ready graduates. This approach could be adapted in
Australia to alleviate skills shortage and youth unemployment .
Business Education
The purpose of this study is to compare and contrast a Finnish polytechnic degree in Bachelor of
Business with a similar degree from Australia for the development of industry skills. The Finnish polytechnics have close connection with industry and could provide the Australian higher education sector with a model to enhance the job readiness of the graduate. The Finnish polytechnic system teaches to the same target group as the Australian Universities; a year 12 graduate that expects to work in a business related field. Both degrees allow a pathway into a Master‘s degree in university and can be thus expected to be on the same cognitive level.
Vocational institutions provide Certificate I- IV, Diploma and Advanced Diploma courses in Business.
These courses are usually around 20 weeks each but can be combined for longer duration (―BSB07
Business Services Training Package,‖ 2013). Typically the practical skills are developed on
Certificate level and higher order skills and knowledge on Diploma level and above ( Australian
Qualifications Framework 2nd edition , 2013). A discussion of the merits of the structure of the business courses in the vocational sector is beyond the scope of this study thus not included.
________________________________________________________________________________
Current expectations are that universities should be more competent in measuring and benchmarking the skills the student acquires in their university studies ( Higher Education Standards Framework
(Threshold Standards) 2011 , 2012) . The threshold standards as developed by the higher education standards panel forms part of the underlying framework for all higher education in Australia.
The threshold standard for course accreditation advocates the following process for the design and approval of courses:
1.2 There are robust internal processes for design and approval of the course of study, which:
• provide realistic projections of the demand and resources required for the course of study;
__________________________________________________________________________
Sv en Bergstrom, Stott‘s Colleges, Email: sven@stotts.vic.edu.au
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Proceedings of 29th International Business Research Conference
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• take account of external standards and requirements, e.g. published discipline standards, professional accreditation, input from relevant external stakeholders, and comparable standards at other higher education providers; and,
• provide for appropriate development of key graduate attributes in students including English language proficiency
( Higher Education Standards Framework (Threshold Standards) 2011 , 2012)
There is however little evidence that the industry is directly involved in this process nor that the course takes into the account of the local circumstances in which the course is offered.
Industry skills are specialised skills in an area of study and are normally developed to a basic level at
TAFE or university. These are also called vocational skills. The overall development is of these skills has been in the past the responsibility of Industry Skills Councils.
The Industry Skills Council‘s role were inter alia to
Actively support the development, implementation and continuous improvement of high quality training and workforce development products and services including Industry Training
Packages. (―ISC Industry, Skills, Councils,‖ 2012)
It is not evident that Australian universities have been using the services of the Skills‘ Councils in developing their courses in business.
Traditionally industry skills development has not been the responsibility of universities in the business sector. It is clear that in the future universities have to play a larger role in industry skills development.
This is due to an increase in participation rate in tertiary studies and uncapped places that lead to a new type of student entering the sector (Hare, 2012; Trounson, 2011). The other driving factor for change is the clear need for increased productivity in Australia (Hannan, Ewin & Gluyas, Richard,
2012).
Denise Jackson (2009) argues that to date, Australia has neglected to adequately address this issue.
The Business schools in Australia have been influenced by the Business schools in the UK in their emphasis on soft skills ―employability skills‖ but are lagging behind in the development. According to
Jackson business graduates are lacking in both employability and industry skills.
In 2000, the Department of Education, Training and Youth Affairs, commissioned a report (ACNielsen
Research Services, 2000) in regards to employer satisfaction with graduate skills. This report states that although employers were satisfied with the graduates, a lack of problem solving skills and a lack of understanding of business practices were evident. Both of these skillsets can be seen to be linked to both employability and industry skills. During the time when the above research was undertaken there was an oversupply of graduates and it would appear that employers were able to pick the best of the applicants for an open position and therefore this could mask issues with the employability of weaker students and students with language, literacy and numeracy challenges.
Due to increased turnover of staff it appears that industry is less prepared to invest in ‗on-the-job training ‘ of staff (Jackson, 2009). This again increases pressure in providing a good foundation of skills in university curriculum so that graduates are able to start their career without any additional offthe-job training.
The threshold standards for Universities in Australia ( Higher Education Standards Framework
(Threshold Standards) 2011 , 2012) does not refer to the terms of ‗industry skills‘ or ‘industry needs‘.
This indicates that to date there is no emphasis from government and the university sector to address this issue in a concerted manner.
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Proceedings of 29th International Business Research Conference
24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia , ISBN: 978-1-922069-64-1
Australian universities have implemented a top down approach for curriculum development. The curriculum will define the learning outcomes of a subject and would define the knowledge and skills needed to be learnt to achieve these outcomes.
Australian Universities Quality Agency (AUQA) has developed a good practise database that can now be found on the website of Tertiary Education Quality and Standards Agency (TEQSA) at http://www.teqsa.gov.au/good-practice-database . The author conducted a review and analysis of these practises and identified the following approaches used in Australia to develop industry relevant curriculum;
1. Course/Program/Industry Advisory Committees.
The purpose of these committees is to bring in relevant new industry knowledge to programs. On these committees you will find industry leaders and well known academics in the area. Their purpose is to give high level advice on course development.
The issue with these committees is that they do not necessary understand the characteristics and demands of entry level jobs in the industry (Jackson, 2009).
2. Industry Guest lecturers
Industry experts can bring up-to-date knowledge in their field and also increase motivation of students by providing a model for workplace success for the students.
3. Alumni
Universities have accumulated a great many graduates. RMIT‘s alumni (―RMIT Alumni - About RMIT alumni,‖ 2012) have many events for alumni members. Alumni activities can be a way for graduates to transfer their knowledge and skills to existing students or graduates. It is not evident from the author‘s review that this occurs in a structured way where the knowledge and skills of graduates are utilised in the teaching of undergraduates.
4. Programs with industry placement
Part of the course can be undertaken in industry. For example Swinburne University offers up to four units of industry placement in an undergraduate business degree. The aim of these activities is not to bring industry skills to the university but allow students to gain industry skills outside the university
( www.swinburne.edu.au
) . Overseas students cannot always do industry placement due to visa regulations.
RMIT and many other Australian institutions have applied Bachelor of Business programs with up to one year of studies in industry, (Bachelor of Business (Marketing) (Applied) is one example of this.
These programs are not part of this discussion since students are gaining skills outside the normal university environment. Today, the author is unable to identify a best practise policy that allows any of this skill development to be integrated into the on campus, face-to-face delivered curriculum.
5. Internships
Part of the course can be undertaken as a problem based learning project. These projects are mainly offered at post-graduate level in business courses. The assessment is primarily academic as indicated here for ANU (―Welcome - Australian National Internships Program - ANU,‖ n.d.)
For credit internship opportunities allow a student to obtain academic credit for their placement. They typically involve some sort of academic assessment in addition to workplace outputs, and involve an academic as well as a workplace supervisor
The assessment of internship is separated into an academic component and a workplace component.
A better approach would be an integrated assessment by both an academic and a workplace supervisor together evaluating the output as discussed later.
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Proceedings of 29th International Business Research Conference
24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia , ISBN: 978-1-922069-64-1
6. Capstone subjects
Many programs include a capstone subject to draw to together industry and employability skills.
Research has shown (Keller, Chan, & Parker, 2010) that capstone projects indeed increase employability skills.
7. Research
Universities are by definition undertaking research. It is obvious that some of the industry experience that teaching staff gain through their research will flow on to their teaching. This is referred to as the teaching research nexus.
8. Lecturers past industry experience
Most universities employ sessional lecturers with industry experience. It is rare though for this experience to be utilised in curriculum development.
Problem Based learning (PBL) is one of the most common approaches to skills integration in the tertiary sector. PBL is an outcome based approach. Learners decide what skills and knowledge they need to gain in order to solve the problem given to them at the beginning of the semester (Savin-
Baden, 2000). This problem can be generated from within the program or more commonly a problem originating from industry.
Three modes for PBL have been identified (Savin-Baden, 2000)

Hierarchical mode.
Facilitators direct the learning process and exercise their power over it.
Facilitators take responsibility for learning.

Cooperative mode . Facilitators share power over learning with the project team and enable team members to become more self-directed by conferring with them.

Autonomous mode.
Facilitators respect total autonomy of team. The team evolves its own learning and structure
As an example of an implementation of PBL is the approach of Victoria University. Victoria University has in their Engineering programs implemented PBL for more than 10 years. The implementation at
VU evolves from a hierarchical model approach in the first year to a more autonomous approach in the final year of study 2006 (Simcock, Shi, & Thorn, 2008). The first reports of the outcomes of this approach appears to be successful. Students appreciate the self-directed learning approach and has increased motivation to complete their task. Engineering degrees due to their applied nature are easier to transform into PBL with direct application and benchmarking of solutions developed to existing solutions in industry.
Stinson and Miller (Stinson & Milter, 1996) argue that PBL approaches are holistic in nature. One cannot and should not narrow a problem into a single discipline. Problems should be authentic and engaging and mirror professional practice. By definition a problem is not well structured and cannot be defined and understood using knowledge from a single subject or even a single discipline.
Students need to be exposed to a real scenario in the business world that requires broad skills and knowledge every step of the way from defining and understanding the problem to implementing the solution. This requires cooperation between university disciplines that we traditionally have not seen in universities. Interdisciplinary teams of experts will have to be established that provides support for students and work with students and industry with the business outcome in mind in order for this approach to work.
Stinson and Muller (1996) highlight the transition the student needs to go through. Most students would come from a very traditional high school environment where subjects are thought separately and no or very few opportunities for interdisciplinary problem exist. This will cause friction between students and teachers in the problem based learning approach. Students expect teachers to provide
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Proceedings of 29th International Business Research Conference
24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia , ISBN: 978-1-922069-64-1 an answer to any problem encountered and have a perfect outcome ―the right answer‖ in mind that the students will be assessed against.
This above list is not exhaustive but will form a foundation for identifying the practises used in the
Finnish polytechnics in this study. There are many other research papers (Anonymous, 2011; Baker
& Henson, 2010; Barnett & Coate, 2005; Beddie, 2010) that identify the need for change in the teaching and learning approach in the tertiary sector and especially in business education in order to provide better industry skills developed graduates .
There is however a lack of empirical evidence that universities actively develop these approaches in business schools (Jackson, 2009). Australia is advancing into a knowledge society and future work skills need to developed accordingly (Davies, Fidler, Gorbis, Fidler, & Gorbis, 2011).
The Finnish university sector is standing on two legs. A traditional university sector with 16 universities and a polytechnic sector (now Universities of Applied Sciences). In this study only the polytechnic sector is discussed. The university sector is to a large extent similar to the Australian system with a three year Bachelor degree followed by a two year Master degree and a four year
Doctor of Philosophy degree.
The role of polytechnics is to ―train professionals in response to labour market needs and conduct
R&D which supports instruction and promotes regional development in particular‖ (Ministry of
Education and Culture, 2012). This is different to Australian Universities in terms of training professionals responding to labour market needs. The Finnish Polytechnic sector has managed to maintain the connections to the industry for all levels of students (Nurmi & Paasio, 2007; Välimaa &
Boulton-Lewis, 2006). The implementation framework for this is not described in literature or policies/procedures from the polytechnics.
There are 25 polytechnics in Finland (Ministry of Education and Culture, 2012). The majority of these are run as private not-for-profit organisations. An important difference to Australia is to note that education is free in Finland. The major funding for polytechnics is directly through government. The current legislation prohibits collecting any kind of fees from students. The Ministry of Education decides on the number of places in different fields for the polytechnics and funds them accordingly.
This decision for funds allocation is based on projections of future demand for workers in the sector.
A Bachelor of Business degree in a polytechnic takes 3.5 years. All students must undertake a mandatory 6 month work placement in the third year of study. During the final year students have to write a thesis that on most occasions has been commissioned by a company.
The Bachelor's thesis is a project of 15 credit units. It can be a planning or development task, research, a product or a guide done for a company or a community. The thesis is written following the practices of scientific reporting and with emphasis on practical solutions for company problems.
(―TAMK - IB Bachelor‘s thesis or project,‖ 2012)
The quote above indicates that the polytechnics are working closely with the community in solving relevant problems for the local industry.
The other major element of industry contact is the mandatory six months industry based learning that the student will undertake during their third year of studies.
Work placement is a stage in your studies that allows you to put theory into practice, and to apply and test what you have learned in a real life context. Work placement also allows you to assess your skills and build a foundation for further development. Self-assessment is an important skill in working life, as it is the employees themselves who are essentially
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Proceedings of 29th International Business Research Conference
24 - 25 November 2014, Novotel Hotel Sydney Central, Sydney, Australia , ISBN: 978-1-922069-64-1 responsible for managing their work in today‘s environment. Indeed, students are expected to set clear objectives with regard to their work placement, and also to report on this.
(―Work placement — HAAGA-HELIA ammattikorkeakoulu,‖ n.d.)
There are various ways of integrating skills in the teaching approach of the polytechnics. The approaches seem to differ slightly between the polytechnics. In the interest of brevity I will present an approach taken by a campus of the biggest business polytechnic: Haaga-Helia University of Applied sciences.
The research design was comprised of a review of the literature as identified above. To supplement the review, three focus group interviews with Haaga-Helia University of Applied sciences students, lecturers and program managers were undertaken in April 2013. The three final year students were selected by convenience sampling. The three lecturers were selected based their area of specialisation; being marketing, accounting and IT. This allowed the interviews to focus on practical industry skills development. All four program managers on campus attended. The findings below are in the context of the integration and development of industry skills and creating graduates that are ―fit for purpose‖.
The Porvoo Campus of Haaga-Helia has integrated a Problem Based Learning approach for the degree. The students create a portfolio in accordance with their own learning needs and their expectations (―Competence Portfolio — HAAGA-HELIA ammattikorkeakoulu,‖ n.d.). The tasks and the roles of the student will change in accordance with year level starting from more basic tasks and progressing to project management roles in their fourth and final year. Use of portfolios is nothing new. They are very common in medical studies
(O‘Sullivan et al., 2011) but not commonly used to this extent in business studies. There are concerns especially with the level of educational outcomes achieved and the ability of the student to be self-directed for this teaching and learning approach.
Comparison between Finnish and Australian Contexts
Two comparison tables between the two systems have been created below.
Table 1 Comparison between the approaches from the student‘s perspective
Haaga – Helia Porvoo campus Business degree in Australia
Bachelor of Business Bachelor of Business
Student recruitment
Student’s industry connections
30% of the entry score is based on
Year 10-12 results
25% is based on Matriculation exam in year 12
35% is based on entrance exam results
Entry based on ATAR score (year 12 exams)
10% other factors.
Ongoing real projects with industry
Mandatory 6 months industry placement
Some programs have six months industry placement
Many programs have a short
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Proceedings of 29th International Business Research Conference
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Compulsory thesis mostly industry related capstone project
No thesis
Guest lecturers
Guest lecturers
Measure of
Success
Starting Salary of graduates
Employment rate
Graduate destination survey
Starting Salary
Employment rate
University Ranking
Length and content of study
Pathway for further studies
3.5 years including a six months work placement and a final thesis.
No other specified units. All degrees have different structure with units of different length as indicated by the
ECTS (European Credit Transfer
System) value
Normally 3 years but degrees with industry placement are usually 3.5 years.
Units are usually five credit points but no standard exist for definition of a credit point
Business degrees are similar in structure especially when they are recognised by external bodies (i.e.
CPA Australia or similar)
Applied master‘s degree at polytechnic
University master‘s degree
Graduate programs at big employers
From the students ‘ point of view the first difference is the selection process. Students in Australia in business programs are selected based on their ATAR score. This score is based on study success in year 11 and 12. The Finnish students ‘ score is based on success in selected subjects from year 10 -
12 and the final matriculation examination in year 12. This forms for the business polytechnics only
55% of the total entry score. Another 35% of the score is based on the entry examination. This entry examination assesses wether the student has the skills, motivation and the abilities for future professions in the applied field. Industry representatives take part in the selection process. Both the
Australian and the Finnish system have special entry pathways for mature age students. Recent uncapping of university places in Australia has led to a fall in the ATAR score in the business programs (Norton, Sonnemann, & Cherastidtham, 2013). I have not been able to locate a single
Bachelor of Business program in Australia that has entry examinations.
In Australia the students industry connections essentially occur outside the university. Work integrated learning is implemented in some Bachelor of Business programs. Guest lecturers from industry are invited but little evidence of that being an integrated as a structured part of learning exists. The Finnish system has the student directly communicating with industry representatives from the first semester through projects. A mandatory six months industry placement combined with an applied thesis expands and deepens the industry connections throughout their studies.
The Australian universities measure the success of their programs with a range of indicators. The
International ranking of universities is more focussed on research activities (refer to ranking and discussion on http://www.australianuniversities.com.au/rankings/ ) than teaching. The Good
Universities Guide at http://www.hobsonscoursefinder.com.au/ has comprehensive research and ranking for teaching quality and employment and entry salary. The Finnish polytechnics are not
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Proceedings of 29th International Business Research Conference
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Due to funding and other restrictions set by the Ministry of Education there is very little competition between the polytechnics outside the capital city region.
A degree in Finnish polytechnic is 3.5 years with very little scope for fast tracking, The course has two mandatory units, a six month work integrated learning unit and a final applied thesis. The subjects studied are developed based on the needs of the local industry and vary in length as measured through the European Transfer Credit System (ECTS). Credit transfer between polytechnics is not common. An Australian degree is usually a standardised 3 – 3.5 years four units per semester with options for fast track. Due to the effective standardisation of the degree transfer between providers in relatively easy.
After graduating with a Bachelor of Business degree from a polytechnic, students commence working.
With three years industry experience they can apply for entry into an applied Master degree at the polytechnic if so desired. Although it is possible for students to immediately continue into a Master‘s program at a university it is rare for them to do so.
An Australian graduate can either continue on to a Master‘s degree or other post graduate qualifications immediately. Many big employers run their own graduate programs.
Table 2 Comparison between the approaches from the faculty perspective
Haaga – Helia Porvoo campus Business degree in Australia
Bachelor of Business
Teacher recruitment
Bachelor of Business
Master‘s degree in cognate field with 3 years of industry work experience. Pedagogical studies can be completed later.
A PhD qualification with a solid research experience. Pedagogical studies to Graduate Certificate level.
Keywords in recruitment
Publications, research, supervision
Keywords in recruitment
Developers, mentors, supervisors, coaches.
Industry involvement in curriculum development
Industry Advisory Boards for development of new programs
Ongoing two way Interaction on all levels with industry
Industry Advisory Boards for development of new programs.
Usually annual meetings later.
Lecturer involvement in curriculum development varies between providers
Lecturer’s
Industry connections and support
Ongoing exposure through projects
10 weeks industry placement every
5 years
Emphasis on research
Role of lecturer Independent role with full responsibility of curriculum in the field.
Benchmarking of Only against industry outcomes
Dependent role based on outcomes of moderation, benchmarking and other approval processes.
Benchmarking is part of standards
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Proceedings of 29th International Business Research Conference
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No standardisation of degrees Degrees are similar between universities
Student feedback
Moderation is part of standards framework
Student feedback
A major difference between Australian and Finnish institutions is the recruitment of teaching staff. Full time Australian lecturers are mostly recruited based on their academic background in qualifications and research whereas the Finnish lecturers are recruited based on passion for teaching and years of relevant industry skills. The teaching qualification in Finland has to be completed within three years of commencement. Full time teaching staff in Australia have to have a PhD qualification and as a minimum Graduate Certificate in Teaching . Both countries use Industry Advisory Boards or similar to develop the program. The Finnish system engages the lecturers more in curriculum development by asking them to do research for curriculum development in the industry. The subject content is flexible in the Finnish system based on the views of the lecturers and the needs of the local industry. The subject content is more static in Australia and little difference in structure and content between the universities can be found. This is also due to accreditation requirements by external bodies like the accounting association CPA Australia.
The recruitment process of teaching staff in Australia emphasises knowledge in the discipline field with an expectation of showing this through research activity and outputs. The connections to the industry are maintained on a higher level through research projects. The Finnish lecturers maintain lower level connections through the projects and their own direct industry connections. The connections are beneficial to both the lecturers and the company through information sharing and development projects.
In the Finnish system the role of the lecturer is to provide job ready students using their industry knowledge and contacts. In the Australian universities the main role is to increase the knowledge in the sector by engaging in research.
Benchmarking of teaching and learning is mandated in the threshold standards ( Higher Education
Standards Framework (Threshold Standards) 2011 , 2012) and is mandatory for all higher education providers in Australia.
The benchmarking of the Finnish system is predominantly based on job readiness for the industry in the local area. The Finnish system relies extensively on the quality of the individual lecturer with very little benchmarking or moderation activities implemented.
It is evident that the approach taken by the Finnish Polytechnics provides more job ready students.
This has been possible by having lecturers with access to active industry connections and real world projects throughout the degree. There is scope for TAFE institutions to enter this space provided the standards can accommodate a more flexible approach.
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