Summary of the Azerbaijan State Oil Academy (ASOA) Project Accomplishments

By: Professor Bijan Fazlollahi, Project Director

(November 30, 2002)

Project:           GSU Partnership to Develop a MBA Program and Faculty Capabilities at Azerbaijan State Oil Academy, Baku, Azerbaijan

Funded by:      The Bureau of Cultural and Educational Affairs of the United State  

                         Department of State; Amount $200, 000

Project Dates: November 11, 1998 to August 31, 2002

PROJECT PARTNERS

GEORGIA STATE UNIVERSITY, J. MACK ROBINSON COLLEGE OF BUSINESS

Established in 1913, Georgia State University (GSU) is a fully accredited institution of higher education. GSU has over 26,000 students. Each year University awards about 2000 undergraduate degrees, 2000 master’s degrees and about 250-300 Doctorate degrees. Robinson College of Business is a one of six academic colleges at GSU and is among the ten largest business schools in the nation. The college has 180 full time faculty and is organized into 12 academic units. Robinson College of Business has one of the most reputable business programs in the US.

AZERBAIJAN STATE OIL ACADEMY

Azerbaijan State Oil Academy (ASOA) is a public university founded in 1920 and currently offer undergraduate, masters and doctorate level degrees.  ASOA is specialized in Engineering and Science fields. ASOA has over 500 full, associate, and assistant professors and seven main engineering departments.

PROJECT DESCRIPTION & ITS STATE AT COMPLETION

The objective was the development of MBA program at ASOA to train the next generation of Azeri managers to meet the needs of post-Soviet market economy. Activities include curriculum/course development, faculty development, and establishment of library of teaching materials and computer laboratories. The MBA program with English as a language of instruction has been established. Azeri faculty members have been trained to teach the core and some elective courses Assistance of American partner for teaching advance courses is still necessary. 55 students have completed the 2 year MBA program and graduated (Concentrations: 35 general MBA, 13 operations management, and 7 computer information systems).

SUMMARY OF PROJECT GOALS VS. PROJECT ACCOMPLISHMENTS

• MBA curriculum established and implemented as planned
• ASOA Faculty exchanges for faculty development and Administrative Training in Atlanta exceeded goals:

Planned (8 persons)

Actual (15 persons)

• GSU Faculty exchanges providing Faculty Training and Administrative Development in Baku exceeded goals:

Planned (9 persons)

Actual (15 persons)

Note: ASOA MBA program administrators trained in Atlanta and Baku. (This extra activity that was not originally part of the project and was accomplished without additional funding).

•  Computers, textbooks, and audio-visual equipment were purchased and delivered 50% more than planned.
• ASOA MBA program faculty members were exposed to research and case studies. The American and Azeri project directors collaborated on joint research and publication of articles. However, research, case writing, and textbook translation activities remain marginal among the business faculty of ASOA.
• Strong relationship was established with the business community. MBA Board of Advisors was established. Members include CEO’s of Western Oil Companies and Government Ministers. BP-Amoco Company has established lecture series.
• Cost Sharing: Georgia State University has contributed a significant amount of time and money to this project. Faculty training in Atlanta has been free of charge. The participants have taken about 35 courses in Atlanta and have been mentored by more than 40 GSU faculty members who did not visit Baku. Office space and computers were provided to the Azeri faculty free of charge. In addition, travel expenses to Baku of both the Associate Dean and the Director of Communications to attend Board of Advisors meetings and graduation ceremonies were financed by Robinson College of Business. (estimated at $8,000). Furthermore, the GSU Provost has financed about $6,000 of travel expenses of the project director to Baku. In addition the project director has received two course releases for this project estimated at $18,000. The estimated total value of the above is $125,000. In addition, GSU contributed all the indirect cost of $52,000. The total amount of cost sharing exceeds the budgeted amount of $115,347.

Involvement of Public Affairs Office:

   Inauguration MBA Program-2000, April:

      -Slenley Escudero  -Ambasador,  US Embassy in Azerbaijan.

   1st Meeting of Advisory Board-2001, April, 27:

      -James Seward -Public Affairs Officer, US Embassy in Azerbaijan.

  1st graduations –2001, September,15: 

      -James Seward -Public Affairs Officer, US Embassy in Azerbaijan.

   2nd Meeting of Advisor Board-2002, March, 18:

      -James Seward -Public Affairs Officer, US Embassy in Azerbaijan.

    2nd graduations –2002, March,19:

      -Ross Willson  -Ambasador,  US Embassy in Azerbaijan;

-James Seward -Public Affairs Officer, US Embassy in Azerbaijan.

ASSISTANCE FROM OTHER SOURCES:

-Teachers from US Embassy:

Charles Wagoner (Alabama, USA) -Managerial Economics), fall 1999;

Corliss Payne (Chicago, USA) –Business Communications, fall 1999, spring 2000, summer 2000, spring 2001, summer 2001, spring 2002;

Philip Bragdon (California, USA)- Business Communications, fall 2002

-Teachers from CESCO:

Ludger Rienstra (Canada)–Business Communications, fall 2001;

- Teachers from Civic Education Project:

Erik Devies (Boston) –Law & Ethics Environment, spring 2002, fall 2002;

Jorge Reyes Orduna (Mexico)-International Business Environment, spring 2002, fall 2002;

                                                  International Relations & Globalization spring 2002.

Lecture series from BP company conducted from September 2001to May2002:  

      BUSINES   LECTURES  RUNNING   A  BUSINESS  IN  AN  OIL  INDUSTRY                                

MILESTONES

The Awarding of Grant (November 1998):

The grant (#IA-ASLJ-G910029) was awarded on November 11, 1998 in the amount of $200,000

ASOA Master of Business Administration (MBA) Program

ASOA’s MBA program was launched in November 11, 1998 at ASOA, Baku Azerbaijan. The MBA program is patterned after the flexible MBA program at Robinson College of Business at Georgia State University. U.S. News and World Report during the last 7 consecutive years has ranked the Robinson’s MBA program among top ten business schools in the U.S. Flexible MBA allows regular students as well as practitioners to study for an MBA degree while employed. Currently some 2,000 MBA students study in the flexible MBA program in Atlanta.

Faculty Development in Atlanta

The training of local Faculty was one of the main objectives of the project. Most local educators had minimal understanding of the fundamental assumptions, principles and practices of democracy and open competition. They had to make the transitions from old bureaucratic, controlled economy into the field of market economy.

A total of fifteen (15) Azeris have been trained in Atlanta. Faculty were trained in semester-long faculty development programs. Azeri faculty audited selected courses, and participated in class assignments and exams. GSU professors mentored the Azeri faculty in the courses they would teach upon return to Baku. The Azeri faculty also developed their teaching, case writing, and research skills and became familiar with the literature in their fields of specialization. The following groups trained in Atlanta:

1999, January-May

Rafik Aliev:

-Production/Operations Management;

-Information Technology for Management Support.        

Yusif Abilov:

 -Information Technology Infrastructure

 -Network Design and Management      

1999, August-December

Faig Aghayev:

-International Business Environment;

-Project Management.

Note: Dr. Rashad Aliyev, faculty member at the ASOA business programs also trained in  

Atlanta. However, his visit was financed by the Fulbright program.

2000, June-August

Isa Abdullayev:

-Corporation Finance;

-Managerial Accounting & Control.

Isfandiyar Aliyev:

-Organization Behavior;

-Human Resourses Management.

Rauf Mayilov:

-Marketing Management.

2001 November-2002 May

Babek Girimov:

-Network Design & Management;

-Database Management System;

-Web Design & Development;

-System Analysis;

-System Design.

2002, January-May

Fuad Veliyev:

-Management Concepts/Theory//Practice/;

-Productions/Operation Strategy;

-Strategic & International Management.

Rafig Gurbanov:

-Principles of Macroeconomics;

-Principles of Microeconomics;

- Principles of Accounting I;

-Principles of AccountingII;

Rena Babayeva:

Legal & Ethics Environment of Business;

Managerial Communication;

Human Resourses Management.

Namik Tagizade:

-Operations Planning& Control;

-Accounting Information Systems;

-Computer Based Information Systems.

 2002, May-August

             Vagif Salimov:

            -Information Technology Project Management

            -Generalized Modeling Techniques with Applications;

            -Network Design & Management.

             Huseynova Farida:

            -Becoming a Leader;

            -Introduction to Organizational Behavior.

            Yagubova Dinar:

            -Accounting for Financial Decisions;

            -Corporation Finance;

            - Managerial Accounting & Control.   

Administrative training and Development of ASOA MBA program administrators in Atlanta:

One (1) administrator has been trained in Atlanta.

April 2002 to May 2002

Professor Rafik Aliyev, the Project Director of MBA program, visited Georgia State University in Atlanta to review MBA and University Administrative matters. His goal was to gain knowledge for (1) restructuring and modernizing the administration systems of ASOA MBA program; (2) marketing and promoting business programs. He became acquainted with top and middle level administrative and management systems of GSU and RCB. Learning from the experience of RCB and GSU served as a starting point for future activities related with development and implementation of contemporary academic administration system for the ASOA MBA program.

Administrative training and development of ASOA MBA program administrators and project control in Baku,

The total number of American visits to Baku was eight (8).

June 1999

Professor Judy Quick traveled to Baku to help ASOA to develop the MBA program and to teach business courses. Professor Judy Quick offered advice for improvement of the catalogue as well as assisted in the strengthening of relationships between Azerbaijan Business Community and the business education program at ASOA MBA program. She and Prof. R. Aliyev (Azeri Project Director) visited local business leaders in Baku and invited them to join the advisory board for the MBA program. She also developed budgets and schedules for the program and trained the Azeris on their use.

March 2000

The project director – Bijan Fazlollahi visited ASOA to discuss project administration for the MBA program. He also reviewed conceptual plans, tuition policy, and financial projections for the business school. He also discussed the organization of the business school, administrative and admission policies, and degree award. He explained project administration, and curriculum and faculty development in Atlanta and Baku to local partners. He interviewed prospective faculty members and selected the faculty to visit Atlanta.

October 2000

Prof. Judy Quick traveled to Baku in October 2000 and reviewed the status of the program and offered advice for improvement. She assisted ASOA officers to strengthen their ties with Azerbaijan Business community and to establish a Board of Advisors for the MBA program. She arranged the meetings and accompanied ASOA officials to talk with top managers in major companies.

April  2001

Mr. Gary McKillips, Director of Communications and Dr. Bijan Fazlollahi, Project Director, visited Baku.  They participated in the first Board of Advisors meeting.  They also reviewed the state of the MBA program with Dr. Rafik Aliyev.  They also discussed matters dealing with the Board of Advisors and future cooperation between Georgia State University and ASOA.  The competition for business students is much more intensive now than when the programs started.  The physical facilities of ASOA (building, computer labs and libraries) need much improvement. The visitors also raised the question of faculty retention.  They suggested paying higher salaries to faculty teaching graduate courses.

May 2001

The Director of Academic Assistance and Master’s Admission Office of Georgia State University, Ms. Murphy visited Baku to train ASOA administrators in relevant areas. She met with the manager of the MBA program and with other officers of ASOA as well as reviewed the admission procedures in the MBA program of ASOA. Ms. Murphy gave her recommendations to ASOA officers for developing and improving the quality of the admission process.

May 2001

In May 2001 the Project Director, Prof. Bijan Fazlollahi traveled to Baku to oversee the current situation. He interviewed two Azeri professors who were candidate to travel to Atlanta during summer session 2001. Dr. Fazlollahi also met with various business leaders to strengthen the ties with the ASOA

June 2002

In June 2002 the Project Director traveled to Baku to oversee and evaluate the current activities.  Dr. Fazlollahi inspected the state of classrooms, the library and computer facilities. He attended several classes and talked to the students and faculty to evaluate the quality of instruction. He met with faculty and discussed the importance of research and case writing for the faculty as well as the program. He discussed the administrative activities with the staff and evaluated the effectiveness and efficiency of these activities. Dr. Fazlollahi visited the Public Affairs Officer at the Embassy and requested his help to promote the business program at Azerbaijan State Oil Academy with in the American Business Community in Baku

Faculty Development and Training by GSU Faculty in Baku:

 The total number of GSU faculty members is seven (7).

May 2000

Professor Chris Lemley traveled to Baku to teach Marketing Management Course to MBA students and Azeri Faculty members at ASOA.

October 2000

Professor Judy Quick taught Operations Management course.

December 2000

Professor Deborah Butler taught an Organizational Behavior course.

April 2001

Professor Fred Jacobs taught Managerial Accounting to MBA and BBA students during April 2001.  The Azeri accounting faculty also attended the class.

April 2002

Professor Robert Elrod taught the Decision Science course for students and faculty.

May 2002

Professor Thomas Whalen taught the Business Applications of Soft Computing course for students and faculty.

June 2002

Professor Christopher Lemley taught the Marketing Management course for students and faculty.

Accomplishments in relation to the Goals of the Project

Curriculum

The curriculum is shown in Appendix 1. It is patterned after the GSU flexible MBA curriculum with changes to fit the needs of the Azerbaijan business community. Case method and simulation have been used in courses. In addition to published cases and simulations MBA professors and instructors have developed and used the following methods:

Cases in Production/Operations Management:

-Fuzzy inventory control;

-Application of fuzzy PERT for oil refinery office system.

Cases in Corporation Finance:

-The Income Tax system of Azerbaijan Republic.

MBA Students are participating in First Azerbaijan Business Case Competition.

Participation in this case competition gives business students in Azerbaijan a unique opportunity to learn Western business techniques and provided students with a forum to apply their business training to a real word business problem. Computer simulation is used in the following courses:

1. Business Statistics/Statistical Analysis for Managers;

2. Production/Operations Management;

             3. Marketing Management;

             4. Managerial Economics.

Interactive style teaching and students centered style is used instead of teacher centered style in the education process. In particular, the courses Work Team Design and Development and Managerial Economics use this style of teaching. Also, Professor T. Whalen introduced this style in “Business Applications of Soft Computing with student teams.

MBA Student Body

The ASOA MBA program began with the admission of thirty-one (31) students the academic year 1999. Additional sixty seven (67) students were admitted in 2000 and seventy-two (72) were admitted in 2001, and 18 new students were admitted in the first half of the year 2002. Currently ASOA MBA has 112 students. 15 students graduated in September 2001 and 13 students graduated in January 2002.

Faculty Development and Administrative Training of ASOA MBA program Faculty

Initially we committed to train eight (8) ASOA MBA program faculty at GSU. To date we have trained fifteen (15) ASOA faculty in Atlanta, fourteen (14) of whom had faculty development training and one (1) of whom had administrative training.

We also committed to send nine (9) GSU faculty to Azerbaijan State Oil Academy. We sent fifteen (15) GSU faculty members, seven (7) of whom taught in ASOA MBA program and eight (8) assisted with administrative training.

Establishment of ASOA MBA’s audio visual, library, and computer facilities

Classrooms are equipped with necessary facilities: multimedia projector, TV and video, computers, and Internet.

Textbooks and teaching material are available at the library for shared use by students and faculty. Current inventory of the library consists of over 870 textbooks and teaching materials, including 31 VCR, 20 CDs, Instructor Manuals, Test Banks, Study Guides, Color transparences, and video cassettes. There are also a number of journals, received from USA.

After having enrolled, each student receives a set of books for the forthcoming semester. Teachers receive all materials necessary for instructors (instructor manual, test bank, study guide for teaching and color transparences, video cassettes).

There are three computer labs for students and instructors with access during work hours. The MBA computer laboratories are equipped with updated technology including: over 40 modern computers, 5 laser printers, 2 color printers, 2 scanners, fax, CD-writer and other prefabs necessary to maintain MBA Program in accordance with international requirement. (Note: much of the equipment was purchased from internal funds by changing tuition).

Board of Advisors

 The MBA Advisory Board, has been established, and is functioning successfully. The first Board of Advisor meeting was held on 2001, April 27.The second Board of Advisor meeting was held on 2002, March 18.

The overarching purpose of the Board is to generate closer relationships between the MBA Program and the business community in Azerbaijan.

The objectives of the Board:

·         Generate closer relationships between the MBA Program and the business community;

·         Use the resources at the MBA Program to support the business community;

·         Generate resources to enhance and support the research activities of the MBA Program;

·         Advice and counsel the Program to meet the needs and challenges of the Azeri market economy in transition.

The Board includes representatives of large local and foreign companies, and institutions:

·         Misir Mardanov, Minister of Education

·         Scotton Graham, Vice President of BP Group

·         Igor Yakovenko, President of Azerbaijan Electronics Joint-Stock Venture

·         Khoshbakht Yusifzadeh, Vice President of SOCAR

·         David Stone, Financial manager of Garadagh cement plant

·         Robert Lambert, General Manager of CONOCO

·         Siyavush Garayev, Rector of Azerbaijan State Oil Academy

·         Fenwick Huss , the Associate Dean of J.Mack Robinson College of Business

·         Bijan Fazlollahi, Professor and Project Director, Georgia State University

·         Ilyas Alizadeh, Manager of Foreign Relations Department, SOCAR, Offshore Oil and Gas Production Association

·         James Seward, Public Affairs Officer of US Embassy in Azerbaijan

·         Judy Quick, Georgia State University

·         Gundersen George, Country Manager  of Statoil Caspian Region

·         Jahangir Gasimov, Heard the Program of National Coordination of technical Support of European Union

·         Farda Asadov, President of Soros

·         Mahir Kazimov, Representative of Observation Center European Union Tempus-Tacis Program in Azerbaijan (Tempus-Tacis)

Faculty Research

Although conditions were not suitable for research a great amount of research was accomplished by the Project Directors. It was not possible to implement an affective research program due to lack of interest on the part of ASOA MBA program general faculty. The fact that research is not a priority contributed to the lack of interest. Unless ASOA MBA program provides free time for faculty research, progress in this area is likely to be marginal.

Collaborative research:

Books:

• Aliev R.A., Fazlollahi B., Aliev R.R. Soft Computing and its Application in Business and Economics. Physica-Verlag. A Spriger-Verlag Company. 2003,- 391 p. (to be printed).
• Aliev R.A., Fazlollahi B. Soft Computing Agents Based Distri­bu­ted Intellegent Systems. In Vincenzo Loia. ²Soft Computing Agents: A new Perspective for Dynamic Information Systems². IOS Press. 2002.

Articles:

·       Aliev R.A., Fazlollahi B., Vahidov R. Learning of fuzzy neural networks by using genetic algorithms. In Proc. Of World Automation Congress. Advances in Robotics, Manufacturing, Automation, Control, Soft Computing, Multimedia and Image Processing, pp. 139.1-139.8. Anchorage, Alaska, 1998.

·         Aliev R.A., Fazlollahi B. Multi-agent systems in finance. In Proc. of Third International Conference of Application of Fuzzy Systems and Soft Computing-ICAFS’98, pp. 56-62. Wiesbaden, Germany, 1998.

·         Aliev R.A., Fazlollahi B., Vahidov R.M. Soft computing based multi-agent marketing decision support systems. Journal of Intelligent and Fuzzy Systems, pages 1-9, 2000.

·           Aliev R.A., Fazlollahi B., Vahidov R.M.  Multi-agent distributed intelligent systems based on fuzzy decision-making. International Journal of Intelligent Systems, vol.15, pages 849-858, 2000.

·         Aliev R.A., Fazlollahi B., Vahidov R.M. Genetic Algorithm-based learning of fuzzy neural net­works. Part 1: feed-forward fuzzy neural networks. Fuzzy sets and systems 2001, 8 pp.

·         Aliev R.A., Fazlollahi B., Vahidov R.M. Genetic Algorithm-based fuzzy regression analysis. Soft Computing, Methodologies and Applications. 3(2002), 10 p.

·         Aliev R.A., Fazlollahi B. Decomposition of complex system into set of autonomous agents by fuzzy-genetic approach and its application in economic and business environments. The 2002 IEEE World Congress, on computational intelligence, IEEE International Conference on Fuzzy Systems. May 12-17, USA, Hawaii, 2002. 6p.

·         Aliev R.A., Fazlollahi B., Vahidov R.M. Genetic Algorithms based fuzzy regression analysis. In Proc. of Second World Con­fe­rence on Intelligent Systems for Industrial Automation-WCIS'2002. 8p. Tashkent, Uzbekistan, 2002.

·         Aliev R.A., Fazlollahi B., Aliev R.R. Fuzzy-Genetic Approach Based Multi-Agent System. In Proc. of International Con­ference on Application Fuzzy Systems and Soft Computing- ICAFS’ 2002. 7 pp. Milan, Italy, 2002.

Recommendation:

The ASOA MBA program is patterned after the GSU flexible MBA program and meets the needs of Azerbaijan. The concentrations offered at ASOA MBA program (General MBA, Operations Management, and Computer Information Systems) are also very much in line with the needs of the business community. However, other concentrations such as finance should be added in the future. The language of the program is English attraction of the program for the employees of multi-nationals in Baku and should be continued. The MBA program should be reviewed and updated regularly to maintain its currency and marketability. Currently there are no formal procedures in existence to carry out this vital activity.

ASOA MBA program should do more to retain their faculty and attract new qualified faculty.A few of the ASOA MBA program faculty who were trained in Atlanta are no longer working at ASOA. MBA faculty are only employed part time.

The quality of ASOA MBA students relative to their competitors (Khazar University and Western University) is good. Many of ASOA MBA program students have won Muskie and European Scholarships to study abroad. However, the admission process needs much improvement as the quality of students is not uniform. The quality of the program in part depends on the quality of students admitted to the program. A decision to tighten the admission requirements and require the GMAT is to ASOA's benefit in the long run.

ASOA MBA program is very weak in establishing and maintaining external relations. Considering that Baku is a center for Western Oil Companies, earning the respect of these companies is most important. ASOA has not implemented our recommendations to hire a competent person for external relations or required their faculty to establish links with the business community through various means. ASOA is entangled in Soviet style bureaucracy and is slow in adapting to the requirements of market economy. There is real danger that they will loose their first mover competitive advantage and market share to more agile competitors.  In spite of the fact that the MBA grant is completed we hope to continue links between ASOA and GSU in the field of business education in the following directions:

1. To establish new specialties in the frame of the MBA program.
2. To continue training of Azeri faculty in Baku by of GSU faculty at the expense of Azeris. Robinson College of Business has a similar program in Poland where GSU faculty teach in the MBA program and are compensated by the Polish program for their services.
3. To continue ASOA Faculty development at GSU (at the expense of ASOA or new financial resources).
4. To continue joint research involving the project directors as well as other faculty.
5. To establish Distance Learning where special advance courses and modules may be delivered from GSU to Baku.

In order to implement these initiatives, the Azeri partner has indicated that they will:

Seek new grants from other donors as well as foreign firms and local organizations. They will also use part of the tuition money for this purpose.

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