Professor Dayal was the first full time Director of the Fourth National level Institute of Management of IIM Lucknow. He has also held several positions: Founder Dean of International management Institute, New Delhi; Leader of UNDP/ILO Project on management development in Nigera; Director, Indian Institute of Public Administration, New Delhi.  He served several business organizations for about 15 years and held senior management positions in Alembic Chemical & Pharmaceuticals Company; Philips India and Metal Box.

In 1963, Prof. Dayal came to teach at Indian Institute of Management, Kolkata and later moved to Indian Institute of Management, Ahmedabad. 

Prof. Dayal went to University of California to study mechanical engineering and later shifted to clinical psychology.  He took up postgraduate studies in New York and London.  

Prof. Dayal has been consultant to many large organizations in India such as Power Finance Corporation, Life Insurance Corporation, Indian Oil Corporation, Indo-Burma Petroleum, Air India, Indian Airlines, National Thermal Power Corporation, Mafatlal Industries, DCM, Voltas, Bank of Baroda and others. He has served on several commissions and committees of Union and State Governments.  He was chairman of 18 – member committee appointed in the year 2000 by Ministry of Human Resource Development to recommend on Policy Perspectives for Management Education.  The Report was submitted to the Government in the year 2001.  

Prof. Dayal has served on the Corporate Boards of several organizations.  He was Chairman, DCM Ltd., for two and half years, and member of the Board of Bharat Electronic Ltd., Indian Oil Corporation, National Textile Corporation, U.P. Roadways Corporation and several others.  He is also member of the Governing Board of many management schools. Prof. Dayal has published 27 books and monographs and over 240 papers in journals and periodicals in India and abroad.