Universities around the world are shifting from the original purpose to the production of employable graduates in the current era. Therefore, producing employable graduates has become one of the primary functions of Universities. Problems regarding unemployed and underemployed graduates in Asia are continued from the last three decades. The lack of coordination and cooperation among various stakeholders is the main reason for the plight of the unemployed graduates. The objectives of this study is to analyse issues related to coordination and cooperation of stakeholders in the university system in respect of employability issues; and to evaluate the roles of power in relation to the coordination and cooperation of stakeholders in the university system with respect to employability issues; Attention is paid to exploring the reasons for the issue via the lens of the theory of communicative action. This empirical study was undertaken as a qualitative embedded single case study strategy to investigate this phenomenon, and adopted in the critical constructive nature of research philosophy. Accordingly, based on the empirical evidence of the study, it is concluded that the bureaucratic system practiced in management faculties overrun the lifeworld of academics and other stakeholders. Instrumental action in the decision making process and asymmetrical power relations among stakeholders prevent free speech space in the university set up, which has resulted in a lack of coordination and cooperation among stakeholders. The unique findings of the study add to the TCA on how a university accomplishes its goal in the absence of a mutual understanding or free speech situation among stakeholders.
