Around 93 percent of students from B-Schools in India are unemployable, said an Assocham study. Was the study skewed in lumping the creamy layer of IIMs, and other top notch B-Schools with the many, many that have mushroomed around the country to slake the thirst of those individuals who want the ‘MBA’ tag?
The survey has taken the B and C grade colleges as part of its study and hence these results, says Dr. Debashis Sanyal, Dean, Narsee Monjee Insitute of Management Studies (NMIMS).
Sanyal points out that the overall package offered to B-school graduates in 2015 was 32 lakhs per annum. “We had the lowest package at Rs 17.09 lakh last year at NMIMS and the topper got Rs 23 lakhs,” said Dr Sanyal refuting the survey that only 7 percent B-School graduates are employable. “The top institutes in the country, be it in Tier 2 towns like Bhubaneswar too have 100 percent placement.”
The same thought was echoed by the official at Xavier School of Management, XLRI, Jamshedpur. “We have no problem with placements,” said Sunil Varughese, Chief Brand and Sustainability Officer, XLRI. He says that the problem arises when students do not qualify for good B-Schools or are not equipped for the grueling course studies at B-Schools that do not have good faculty. “If anyone then believes a corporate will offer placements at Rs 15 or Rs 18 lakh packages, then it is far-fetched,” says Varughese.
The Assocham survey should have been ideally done by the AICTE, for it is the regulatory body for all technical courses in India. The AICTE grants approval for starting new technical institutions, for introduction of new courses and for variation in intake capacity in technical institutions. The technical institutions under the AICTE include post-graduate, under-graduate and diploma in the whole spectrum of technical education covering engineering/technology, pharmacy, architecture, hotel management and catering technology, management studies computer applications and applied arts and crafts.
Time and again surveys are done on the efficacy of high performance-centric and much sought-after engineering, B-School graduates and they reveal the almost same results – dismal performance of students, colleges and the unemployability of students in the corporate sector.
A professor from a top B School in the country mentioned that the issue is about the greed for an MBA tag from any college, never mind its reputation. “The Assocham survey says that India has around 5,500 B-schools, which is a lot when compared to 4,000 in China and 7,000 in the US. However, one has to factor in the large population in India as well. But are we catering to the students with the right faculty, resources, etc? Are all the 5,500 B-Schools doing that?,” he asks.
In the US, an aptitude test is taken when you seek admission for a B-School, says Anirudh Motwani, co-founder of CollegeSearch.in, an online portal that provides information to students about educational institutions across the country. He points out that many times a student’s interest and his capability may not be the best fit.
“Almost everyone chases an MBA and because they believe the degree will take them to a better life. You could be an engineer, a pharmacist, a fashion designer who believes that an MBA degree will open the career doors for you. However, employability is about your readiness to work and the training you have received. You may be lacking that in ill-equipped B-Schools you have enrolled in,” points out Motwani.
Sanyal says that if a survey on B-Schools collates information about top B-Schools in the country and also factors in the numerous others that run these courses, then it is not presenting the right picture. He states that all top B-Schools in the country have 100 percent placements. "You will not find a student in these top colleges failing to get placement. The packages may differ though. However, the industry average offered to students in B-schools last year was around Rs 32 lakhs. We had an average of Rs 23 lakhs offered to our top students and an average package of Rs 17.09 lakhs at NMIMS," he said. He says that would be the case too in a tier 2 city like Bhubaneswar. "Now that would depend on what the survey considers Bhubaneswar to be -- a city or not," he added.
However, Prof. Debabrata Chatterjee, Dean (Administration), IIM Kozhikode, says that the survey highlights a concern with regard to the quality of higher education in the country. “The report should open a dialogue regarding the nature of the problem, its causes, and steps that need to be initiated to correct the situation.”