According to a study by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), barring MBA graduates from the top-20 business management institutes, only 7 per cent get a job after completing their course. Most of the students of 5,500 business schools are “unemployable’’
Dr (Honorary Colonel) A. Balasubramanian, the Editor-In-Chief of Corporate Citizen, and the President of the prestigious
educational society (Sri Balaji Society) was felicitated and conferred the ‘ Lifetime Achievement Award’ by Shri.
Devendra Fadnavis, Chief Minister, Maharashtra state, in a public function held in Mumbai on February 28, 2018
If you go to any B-school, the conversation among students, from the time they join an MBA institute to the time they finish their course, revolves around campus placements. Such MBA schools, numbering a whopping 5,500 (as per ASSCHOM Report) are spread across rural and urban areas.
When we consider MBA schools in urban areas, the environment is conducive to quality learning due to the proximity of corporate industry, availability of corporate leaders who periodically interact with students and opportunities for students to visit companies for projects without much cost. If you contrast this with a B-school in a remote taluka, the conditions are adverse for students. The language problem, paucity of quality faculty, lack of a ‘hygiene’ system in terms of supporting system, that is the industry and corporate leaders, are the main hurdles. Besides these two categories of B-schools, the third category is the elite IIMs which are located in strategically advantageous metros. They have the mighty backing of both, the central government as well as the industry. Corporate leaders feel privileged to be associated with these institutions.
Relate this with the campus placement scenario. At the admission level, the elite IIMs select their 200-300 students out of approximately 1,50,000 students. Most of the students have significant work experience of five to six years. So the take-off salary of the top five to six IIMs is invariably in the RS.15 lakh-plus per annum, category. The new IIMs too have a brand value.
Then comes the other MBA schools in urban areas. According to a study by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), barring the top-20 business management institutes, only 7 per cent of MBA graduates get a job after completing their course. The study states that most of the students of 5,500 business schools are “unemployable’’ and those employed earn less than Rs.10,000 a month. It reveals that campus recruitments plummeted by 45% between 2014-2016, due to economic slowdown and low education quality. From 2014-2016, around 220 B-schools have closed down.
Most of the MBA students are in their mid-20s and face the compulsion of looking after their families, paying back their education loans and pursuing their career dreams. Those in MBA schools of urban areas, struggle for long and ultimately land a job somewhere. The dilemma of students who graduate from B-schools in rural areas is heart-wrenching as the support system is not conducive to realise their dreams. In fact, such a grim situation also prevails in the B-schools of those urban areas which are not fortunate to have industry support.
This apart, what is critical for a campus placement? The industry is not a charitable organisation—it has to have a particular skill set for a particular job and they have to deliver to their shareholders. No one will go to their rescue if they fail to perform. So, can a B-school deliver students who can match the expectations of the different sectors in the industry? Fortunately, the industry understands this limitation of B-schools, so mostly they visit campuses where they can find students who are adaptable and have been moulded by the institute to be good learners, willing to go through hardships and deliver the result under the leadership of the corporate leaders. The industry then is ready to hand-hold the promising candidates. This is where the concept of ‘management trainee’ comes in.
For that, the ‘right attitude, skill and knowledge’ is required to be inculcated into the life system of the students, but this is the challenge for B-schools. For, there is no retention of students up to Std X. Thereafter, at the undergraduate and graduate level, the educational system is pathetic with hardly four to five hours of college and the examination system that is quite lenient. Hence, becoming a graduate is not difficult. For admission into B-schools, the minimum percentage for entrance for admission is only 50%. Paradoxically, this in itself is a joke as B-schools are searching for students, so of what relevance is the selection by entrance examination? But they have to be conducted because it is mandated by AICTE. These are the systematic disappointments.
"The key word here is that B-schools should not only function to impart theories and practices but should also play the role of a finishing school, where the personality of the student is shaped. We, at Sri Balaji Society, are proud of having achieved these standards"
As for B-schools, students mostly join at the age of 20 years when their personality has been shaped and their behavioural pattern, moulded. In two years flat, they have to be made fit for the industry. If you calculate the Sundays, public holidays, project assignments, examination holidays besides the 75% minimum attendance required, the MBA schools are barely left with one year to hone the skills and personality of these students, besides academics.
So, in this leftover one-year period, with inefficient faculties, how to produce the golden mean is the million- dollar question. We, at Sri Balaji Society, felt it imperative to do away with the concept of holidays. In the very pre-admission stage itself, students are told that we do not follow any holiday concept. We also decided to empower women by reserving 50% of the seats for them. We give students the mantra of the 3 Ds of discipline, dedication and determination. They have a dress code and are introduced to the industry culture with a two-month-long induction programme. The result is that our students of BIMM, BITM, BIIB and BIMHRD—the four MBA institutes of Sri Balaji Society—which have mostly fresher candidates, are highly recruitable.
The key word here is that B-schools should not only function to impart theories and practices but should also play the role of a finishing school, where the personality of the student is shaped. We, at Sri Balaji Society are proud of having achieved these standards. The result is companies from all over India are regularly visiting us and our alumni are spread across over the world.
Dr (Col.) A. Balasubramanian
