This paper addresses the design and implementation of project-based capstone courses in undergraduate and graduate management education programs. A team project methodology is proposed that involves collaboration with an external sponsoring organization and focuses upon such issues as strategic analysis and development, remediation of organizational problems, product development, entrepreneurial start-up, not-for-profit organizational development, etc. Key elements discussed include high level educational goals for the capstone, criteria for project selection, processes for sponsor relationship management throughout the project life cycle and the facilitative role of faculty in such experiential learning. Other methods that optimize learning in the areas of leadership development and team process learning are also described.Keywords/Descriptors: Business education, capstone course, experiential learning, problem-based learning, project-based learning.ABSTRACTINTRODUCTIONStudents, employers, accrediting agencies, and those financing higher education increasingly challenge educators to demonstrate learning outcomes worthy of their substantial investments. Traditional academic methods using textbooks, lectures, case studies and other didactic learning approaches all play a potential role in addressing this challenge. Nevertheless, upon completion of a degree program, these stakeholders also want to know that the student can actually integrate and apply what they have learned in the “real world”. A recent survey of employers in the Chronicle of Higher Education supports this notion (Maquire Associates, 2013). This study showed that employers preferentially valued a student’s real world experiences relevant to the challenges of the employment context versus evidence of time spent in classroom activities, reading assignments, essays, discussions etc. Employers want to know if the student can actually use the knowledge gained in such activities.This paper explores one method for promoting learning grounded in this real-world experiential context – the Project-Based Capstone Course. Although the present analysis is drawn from a management education context, educators in other disciplines such as engineering, education or health care could also apply the approaches outlined herein. Topics discussed include delineation of capstone courses goals, criteria for project selection, processes for sponsor relationship management throughout the project life cycle and the facilitative role of faculty in such experiential learning. Methods for promoting leadership development and team process skills are also described.WHAT IS A CAPSTONE COURSE?Most programs place capstone courses at the end of the curriculum and emphasize integrative problem-based learning versus a more passive “content acquisition” approach (Elam & Spotts, 2004; Wood, Smith, & Powell, 1995). Professional schools often utilize a consultative project, simulation or other experiential process (Razzouk, Seitz, & Rizkallah, 2003; Zechmeister & Reich, 1994) as the heart of the educational endeavor. This experiential learning context challenges students to address “messy” problems in realistic contexts. Here students have to understand multifaceted problems within the frame of their own mental models rather than that provided by the professor or other text materials. As such, these courses rely upon a constructivist approach to learning (Springer & Borthick, 2004) in contrast to more traditional “sage on the stage” pedagogy. As Davenport et al noted, useful knowledge derives from information combined with experience, context, interpretation and personal reflection (Davenport, De Long, & Beers, 1998). These are the hallmarks of a superior capstone experience. These courses treat learning as a search for better ways to act versus a sole emphasis upon lower order learning outcomes (Cavaleri & Fearon, 2000). In addition to their learning potential, such project-based courses are highly motivating to students, encouraging them to become active participants rather than passive spectators in the learning process (Humphreys, 1981).
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