Management Education in India - August 2014

1careers360 research

ManageMent education in

india Where is it

headed?

status of education report series

auGust, 2014

2careers360 research 3careers360 research

Status Report B-Schools

With the AICTE and UGC operating at a tangent and the courts reversing their orders frequently, management education is at crossroads now. Already plagued by issues of empty seats, unbridled capacity expansion and major issues of RoI the reputation of the degree has taken a beating. What is the way

forward in this scenario? This white paper examines the status of MBA/PGDM system as it exists today and raises pertinent issues that matter to the B-Schools. From entrances to RoI we look at all aspects of management education with an objec-tive to understand where the domain stands.

Preamble 1.0 Management Schools: Survival of the fittest .................................................................................................................................. 3 2.0 Is the quality of student rising? ........................................................................................................................................................... 5 3.0 Faculty quality............................................................................................................................................................................................ 6 4.0 Accreditation .............................................................................................................................................................................................. 6

5.0 Need for residential B-Schools ............................................................................................................................................................. 6 6.0 Research ....................................................................................................................................................................................................... 7 7.0 Academia-Industry interface ................................................................................................................................................................ 8 8.0 Cost of management education ......................................................................................................................................................... 8 9.0 Placements and Return on Investment ............................................................................................................................................ 9 10.0 Regulatory framework ..........................................................................................................................................................................10

Way Forward

AbStRAct

contentS

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preambleFalling student interest as evidenced by lower CAT test enrol-ments, vacant seats in many B-Schools, longer and uncertain placement weeks even in top tier schools, management education in the country is undergoing a sea change. MBA programme in the country is indeed going through a rough patch. And the buffeting began about a few years back. Directors of B-Schools bristle at the thought of students and media calculating Return on Investment (RoI) for something as nebulous as education. Unfortunately, the ultimate value of an MBA or PGDM programmes has always been measured by one number, the CTC one gets in the final placement. The blame probably lies at the doors of the institutions that sold one crore-plus salary package dreams. This dream, impossible to achieve, has come back to bite the hand that feeds it.

Despite the right noises made , the new government still is in nascent stages for the business scenario to improve sub-stantially. B-Schools need to tide over these times with right amount of caution, clarity and clear-cut strategy. Let us look at what the numbers say.

1.0 Management schools: survival of the fittestGeographically management education still is concentrated in southern states, with the south accounting of almost half the number of schools (See the graph below). But numbers could be misleading. While south has the maximum number of institutes, it is populated mostly by MBA programmes offered by Departments in Engineering colleges. Relatively lesser number of full-fledged PGDM programmes are on offer from the south barring exceptions like TAPMI, XIME, PSG etc. And as expected East continues to languish at 4%.

1.1 But maximum intake is still from southAs the table below shows, three out of the top five positions in terms of the number of institutes and intake happens from the three southern states. But in terms of intake, most of theses colleges if they offer PGDM do have an all India catch-ment area and if they offer an affiliated MBA programme, the student body is locally dominated.

Table 1.1: States with large student intake

State No. of Institutes Intake

Andhra Pradesh 841 122191

Uttar Pradesh 523 68810

Maharashtra 413 49799

Tamil Nadu 377 32815

Karnataka 222 24690

1.1 What is more on offer, MBa or pGdM?With just 644 of the 3462-odd approved schools offering PGDM, the PG diploma schools are definitely a minority. The affiliated colleges syndrome has resulted in innumerable engi-neering colleges offering MBA, thus burgeoning MBA school population. Anna University Chennai alone has 276 affiliating institutes offering MBA or an equivalent degree. Accounting for nearly 1/6th of the total, others do not have any affiliation with a university and provide a PG Diploma on their own.

Institutes Offering Two-year PG Programmes

programmeuniversity affiliated institutes

stand alone institutes

total institutes

MBA/PGDM 2818 644 3462

1.1.1 What do these schools offer?Management programmes generally come as General Management (MBA/PGDM) and named specialization pro-grammes such as MBA (Tourism). The university departments understandably are conservative and offer only general MBA programmes. Private players are more evenly poised in their offerings with nearly 50% schools offering specialised named programmes (See graph 2 on the next page).

FRom cRiSiS to oppoRtunity - A new pARAdigm FoR mbA/pgdm

south

45%

West

18%

north

26%

east

4%

central

7%

Graph 1: Geographical distribution of institutions



1.3 consolidation has begun? As the economy went through a tailspin during the last few years management education too underwent growth pangs. The decline in number of B-Schools from 3541 in 2011-12 to 3364 in 2013-14 corroborates the fact that it is the best and the toughest that survive. However, it is interesting to note that there has been a 6 percent rise in the sanctioned intake among the AICTE-recognized institutes offering manage-ment programmes between 2011-12 and 2013-14 when the number of seats increased from 3.34 lakhs to 3.54 lakhs in the corresponding period. The sanctioned intake in 2014-15, however, shows an incredible rise to nearly 4.1 lakhs. This is on account of increase in number of seats in the existing institutions that were approved by AICTE and also because close to 100 new institutes were added in the last one year. The unofficial estimates register at least 220 institutes closing down in the last three years with a notable fall in the aver-age occupancy rate oscillating in the 68 to 70 percent range (Careers360 Research and CRISIL Report (2014). So the sector is undergoing a churn and it may be good for every stake-holder in the long run.

2.0 is student quality improving? Entrance tests are good places to start with when one needs to understand trends both in terms of student quality as well as student interest towards management education. A cursory look at the data provided by major examinations give out interesting trends.

2.1 General decline in number of test-takers.The Common Admission Test (CAT) is one of the most coveted exams conducted for admission to the Indian Institutes of Management (IIMs) and other institutes in India. Being con-ducted this year by Tata Consultancy Services (TCS) for the first time, CAT attracts close to 2 lakh applicants. The official data of CAT and other management entrance exams for academic year 2013-14 shows a considerable decline in registration numbers (approximately) as shown in the Table 2.1 below

Table 2.1: Test-takers on leading MBA entrances

exam registration (2013) registration (2014)

CAT 2,14000 1,94,000

XAT 92,000 89,000

NMAT 69,000 64,000

Irrespective of the entrance examination, the number of test-takers have begun to slow down. What is interesting is the fact that the number of seats available through CAT is steadily increasing. As Table 2.1.1 explains, the odds of getting a seat in an IIM which was 11 per 1000 four years back has increased to 17.7 in the current year. So other things being equal, the number of aspirants to CAT must go up. But it doesn’t as the table above shows.

In 1960’s IIMs selection rate was 1 among 30 applicants. With the rise in number of seats due to newer IIMs, there are in all 3438 seats for 1.94 lakh CAT applicants or roughly 57 applicants for a coveted seat in any of the 13 IIMS. Today, for a seat in any of the four old IIMs (A, B, C and L), there are 116 applicants. The admission was a lot tougher in the 1990s or early 2000 when there were as high as 400 applicants compet-ing for a seat in IIM.

Table 2.1.1

admission Year

total number of cat applicants

total number of seats at iiM

seats available per 1000

candidates

2010-12 241000 2650 11

2011-13 204000 2750 13.5

2012-14 205000 2946 14.4

2013-15 214000 3220 15.0

2014-16 194000 3438 17.7

2.2 But is the quality of students rising? Doubtful is the answer. Last year Careers360 brought out a story, wherein a candidate who attempted zero questions in CAT was placed on the 55th percentile indicating that there where at least 45 percent of students who scored in negative digits in the same exam. An expert even concluded that more students took the test irrespective of their preparedness level and this has led to decline in performance at the bottom.

Take another exam, CMAT, conducted by AICTE. According to the September CMAT 2013 results, out of 64,534 candidates who were ranked, the number of candidates scoring 30 per-cent marks or less was 43,805. The share of candidates scoring zero or negative marks has also increased four-fold, the data reveals. As compared to September 2012 CMAT exam where the share of candidates scoring zero or negative marks was 0.48, September 2013 CMAT merit list shows 1.63 per cent of students scoring zero or below, a four-fold increase.

While experts attribute this ‘decline in quality’ to the increased toughness level and increasing volume of test-tak-ers, they don’t see a definitive trend emerging out of this merit list. Sandeep Manudhane, Chairman, PT Education says that CMAT paper was tougher this year. “The poor performance of the candidates might be due to the higher level of difficulty of CMAT paper this year,” he says.

Career Launcher Vice Chairman and MD Gautam Puri attri-bute this dip in the performance to increasing volume of candidates which include non-serious students also. And he concludes that the cut-off for the B-Schools are likely to remain unaffected as the performance issue is confined to the bottom end of the merit list.

In other words, despite students scoring poorly, the cut-off for top players will remain the same is the conclusion drawn by experts. But the issue is quite a few B-Schools admit stu-dents at the 55- 60 percentile category who in the case of CAT are aspirants who have scored negative absolute scores. This definitely is a cause for concern.

2.3 are students begining to think global?However, the declining popularity of CAT (see Table 2.1) and the increasing interest among MBA aspirants in the Gradu-ate Management Assessment Test (GMAT) conducted by the global GMAC primarily for doing a management course in a foreign country implies that Indian students are exploring all possibilities that work out to their advantage. It also suggests that there could be more number of applicants who are work-ing professionals willing to re-skill amidst global slowdown. The number of Indian institutions accepting GMAT scores has also increased wherein nearly 250 management programmes in India have started accepting GMAT scores, up from only 37 in 2010. GMAT’s growing popularity over CAT could be attrib-uted to its flexible format that allows aspirants to write the test a number of times in a year. Also the test score’s longer validity makes it quite popular.

Table 2.3 GMAT Vs CAT

Year GMat takers from india cat takers in india

2009 18,929 2,30,000

2012 22,310 1,94,000

2013 22,878 1,74,000

2.4 is work experience essential? Indian B-Schools are still populated by freshers though the trend is slowly changing. What one sees is the fact that expe-rienced professionals are seeking one-year programmes to add value to themselves as evidenced by data provided by a school like Greatlakes. But at most of the schools with 2-year programmes the population is dominated by freshers.

Table 2.4: Does Experience Count?

B-school >2 years work exp.

Great Lakes 98%

IIM Bangalore 55%

TAPMI, Manipal 48.2%

Symbiosis IBM, Pune 16.9%

Karunya SoM, Coimbatore 2.0%

SCMS, Cochin 1.0%

1.2.2 What are these named MBasFrom the graph above one could see that 321 institutes in total offer named MBA/PGDM programmes. The graph below provides data on the domains. While Finance tops with over 44 named programmes in that domain Tourism has the low-est at 8. One reason could be the existence of a separate programme, MTA, in that domain. The efficacy of a named domain-specific MBA has been subject to debate and opin-ions vary substantially across the spectrum, from it being very good to being a money-making proposition for institutes. The truth lies somewhere in between.

university affiliated institutes stand alone institutes0

500

1000

1500

2000

2500

3000

General Management (With specializations)

specialised programmes

2712

106215

429

Graph 2: General Vs specialised

0 5 10 15 20 25 30 35 40 45

university affiliated institutes

stand-alone institutes

1538others

1612duaL deGree (e.G.

hr + finance)

210aGriBusiness

219retaiL ManaGeMent

1721huMan resource /

industriaL reLations

1128GLoBaL/internationaL

Business

1427MarKetinG

& saLes

1244finance/BanKinG/

insurance

48tourisM

138inforMation

ManaGeMent

Graph 2: named MBa/pGdM



3.0 faculty qualityThe sine qua non for a good school is the quality of its faculty. While a raging debate happens between the suitability of practising managers as teachers vis-à-vis PhD-holders who are primarily academics for teaching management, the need for academic rigour is never questioned. But Indian schools do lack good quality faculty as the table below shows:

Table 3.0 Percentage of PhD-holders to total faculty

percentage % of institutes

90- 100 < 1%

80- 90 7.0

60-80 13

40- 60 22

< 40 50%

3.1 student faculty ratioStudent faculty ratio in a B-School varies depending upon the focus of the programme as also the number of programmes being offered. In good institutes, the ideal ratio is in the range of 4 to 6 students per faculty, so that the interaction and attention is optimum. The B-Schools that have this kind of an environment are:

Table 3.1 Quality of interaction

B-school student/faculty ratio

IIT Kharagpur (VGSOM) 5.8

IIM Raipur 6.0

IISWBM, Kolkata 6.1

IIFM Bhopal 6.3

IIM Ahmedabad 6.8

IIT Madras (DoMS) 7.6

FMS, Delhi 8.1

IIM Indore 8.7

Note: Computed using fulltime faculty and students including FPM scholars

Apart from IITs and IIMs where almost every faculty is a PhD, the other noteworthy institutes are ISB Hyderabad and Mohali (100%); NITIE Mumbai (97%) and FMS Delhi (93%). Schools where the PhD faculty to faculty ratio is close to 0.9 (or 90%) include XLRI Jamshedpur; LIBA Chennai; IMT Ghazi-abad; MDI Gurgaon, IMI Delhi, IIFT Delhi, IFIM Bhopal and XIM Bhubhaneswar.

Table 6.0 Research output of Top 20 B-Schools in India

name of the institute publications/ Year

productivity* rank

publication count rank

Department of Management Studies, Indian Institute of Technology Delhi 29.00 1 6

Department of Management Studies, Indian Institute of Science (IISc), Bangalore 20.33 2 12

Institute of Management Technology (IMT) Ghaziabad 27.00 3 8

Department of Management Studies, Indian Institute of Technology, Madras 25.67 4 9

Department of Management Studies, Anna University, Chennai 12.67 5 17

Shailesh J Mehta School of Management, Indian Institute of Technology Bombay 22.00 6 11

Department of Management Studies, Indian Institute of Technology, Roorkee 11.33 7 22

Indian Institute of Management, Ahmedabad (IIMA) 51.33 8 3

Indian School of Business (ISB), Hyderabad 40.00 9 4

Indian Institute of Management, Calcutta (IIMC) 72.00 10 2

Indian Institute of Management Bangalore (IIMB) 79.00 11 1

Institute of Financial Management & Research 12.67 12 17

Department of Industrial and Management Engineering, IIT Kanpur 10.00 13 25

Institute of Rural Management (IRMA) 12.33 14 19

Indian Institute of Management Kozhikode (IIMK) 27.67 15 7

Vinod Gupta School of Management, Indian Institute of Technology Kharagpur 9.33 16 27

National Institute of Industrial Engineering (NITIE) 20.00 17 13

Management Development Institute (MDI) 31.33 18 5

Indian Institute of Forest Management (IIFM), Bhopal 12.33 19 19

Department of Management Studies, National Institute of Technology, Durgapur 3.00 20 42

4.0 accreditationNational and international organizations or independent agencies prove to be a great help in assessing the education quality and processes as they accredit the institutes. In 2013, accreditation was made mandatory for all educational insti-tutes through an executive order, after the Ministry of Human Resource Development could not get a law to that effect approved in Parliament. The executive order also showed an incredible rise in the number of applications for accreditation last year when annual request surged from 800 to nearly 3000 at the National Assessment and Accreditation Council (NAAC). Independent international agencies are much sought after by the best B-Schools in India.

Table 4.0 : Select schools with accreditation

B-school Key accreditation

Indian Institute of Management, Bangalore

EQUIS

TA Pai Management Institute, Manipal

AACSB, NBA

Management Development Institute, Gurgaon

AMBA, SAQS, NBA

Indian Institute of Management, Ahmedabad

EQUIS

International Management Institute, Delhi

NBA, SAQS, AMBA

Indian School of Business, Hyderabad

AASCB

Indian Institute of Management, Lucknow

AMBA

Institute of Management Technology, Ghaziabad

SAQS

Xavier Institute of Management, Bhubaneswar

NBA, SAQS

IBS, Hyderabad NAAC, SAQS

5.0 need for residential B-schoolsBringing in the sense of community living, where scholars are keen to share their learning, experiences, and knowledge is a crucial aspect of management education. There is a dearth of such B-Schools in the country. Among the top 200 B-Schools, only 15 percent private B-Schools are fully residential where more than 90 percent of the faculty members also stay in the campus. The corresponding figure in public sector B-Schools is much better, with 60 percent of the best 50 B-Schools being fully residential. Management being a substantially experien-tial domain, peer learning is the most important component in the educational processes. Most MBA/PDGM assignments focus on team work and demands working beyond the class-room hours. Any arrangement that does not facilitate such a learning might be an impediment to the learning process of the student.

6.0 research Management research could be in the form of reports, books and academic publications. In most B-Schools until recently it is training (MDPS) that substituted research. Refereed publica-tions as a discipline in Indian institutes is still in the budding stage. Papers in acclaimed journals are concentrated in a handful of select B-Schools. Publication promotes the open exchange of information among the research community and exposes the outcomes and techniques for its scrutiny. The significance of publication also lies in the fact that it also documents who is first with novel ideas or methods, is indica-tive of productive use of research funds, and provides a record by which a researcher and by extension the affiliated institu-tion can be judged. Alongside is a list of top 20 institutes that excel in paper publications in reputed journals of high impact indexed in international databases: Web of Science and Sco-pus in the last three years (2011-13).

If only publication count is taken into account, the B-Schools that excel are IIM Bangalore, IIM Calcutta, IIM Ahmedabad, ISB Hyderabad, MDI Gurgaon, IIT Delhi (DMS), IIM Kozhikode, IMT Ghaziabad, IIT Madras (DoMS) and IIM Lucknow. However, in terms of publications per faculty, institutes such as IISc (DMS) and Anna University (DMS) come up in the top five.

Institutes, especially those without substantial publication record do argue that most international indexing services do not take into account the domestic journals that many schools do bring out. Such an argument is specious, since we are operating in a global environment and only globally accept-able benchmarks of learning must be taken into account. The phenomenal growth of Chinese academic productivity, that too in internationally bench-marked terms is a good example for Indian schools to emulate. The country needs million researchers to consistently bloom.

* productivity is computed by total publication count by the author(s) while he/she is affiliated with the given institution as a core faculty member in the given period.



7.0 academia-industry interfaceKeeping in view that knowledge is the driving force for having a competitive edge in the emerging and established econo-mies, management institutes have undertaken innovative measures in capitalising on their intellectual base. While only 20% of the B-Schools among the top 200 reported any effort in having a database of novel products or services (inventions); only 30-odd B-Schools gave information on entrepreneurship cells, research/consultancy and patenting/licensing activities. By far, the most active initiative in having an interface with industry, apart from visiting faculty from the corporate sector, was on Management Development Programmes. Some of the institutes, the IIMs in particular, have ventured pro-actively in creating start-up firms. The Centre for Innovation, Incubation and Entrepreneurship (CIIE) at IIM Ahmedabad has close to 100 start-up firms. Centre for Entrepreneurship and Innova-tion (CEI) IIM Calcutta; Malviya National Institute of Technol-ogy, Department of Management Studies, Jaipur; Coimbatore Institute of Management & Technology, Coimbatore; and Technology Business Incubator at MICA Ahmedabad are some other initiatives.

There are range of schemes like Research Promotion Scheme, Entrepreneur Development Cells, Industry -Institute partnership cells, Research Parks, Technology Business Incuba-tors, and Innovation Promotion Scheme offered by of govern-ment bodies like AICTE, UGC, DSIR and DST that might help the institutes to get full funding, if not at least seed funding to kick-start these initiatives.

WhAT WE

fOunD OuT

l According to the sample data, companies like IBM, Infosys, Accenture, Oracle, TCS, and Cognizant Tech-nology Solutions are the bulk recruiters at IIM A, B, and C. And they recruit across Tier 1 and Tier 2 col-leges as well.

l Global consulting firms like Boston Consulting Group, McKinsey & Company, Bain & Company, AT Kearney, Booz & Company, Accenture and Deloitte recruited for consultancy profiles and are restricted to top schools.

l Many alumni took up roles in sales and marketing in companies such as ITC Limited, Airtel and Supermax and Procter and Gamble.

l According to the captured data, IIM A has 18.23 %, IIM B 13.374%, IIM C 6.24.23 % of 2013 alumni living abroad, whereas in IIM I,L and K this number varies between 0-3 %.

l For good schools like University of Delhi (Faculty of Management Studies-FMS), New Delhi and XLRI Jamshedpur, majority of the alumni work in consult-ing space (26.9% and 21.23 % respectively).

l XLRI Jamshedpur has 26.30 % of its 2013 alumni going for HR role as per captured data.

Table 9.0 : Average Annual Salary across Top B-Schools

B-schools average domestic salary (rs. 16-18 lakhs per annum)

average domestic salary (rs. 12-15 lakhs per annum)

average domestic salary (rs. 9-12 lakhs per annum)

Top (Public)IIM Ahmedabad, IIM Bangalore, FMS Delhi, JBIMS, Mumbai

IIM Lucknow, IIFT Delhi, IIM Calcutta; IIT Bombay (SJSOM); IIM Trichy; IIT Delhi (DMS); IIM Kozhikode; RGIIM Shillong; IIM Indore; IIM Raipur

IIM Ranchi; IIT Kharagpur (VGSOM); IIM Kashipur; IIM Udaipur; NITIE, Mumbai; SIMSREE, Mumbai; IIM Rohtak

Top (Private) ISB (Hyderabad, Mohali); SPJIMR, Mumbai, XLRI Jamshedpur

NMIMS, Mumbai; MDI Gurgaon; XIM Bhubhaneswar

SIBM Pune; IMT Ghaziabad; Great Lakes, Chennai; IBS, Hyderabad; IMI Delhi; TAPMI, Manipal;

Table 8.0: B-Schools and their Programme fee (Rs lakhs)

up to 2.0 fMs, delhisiMsree, Mumbai

dMs, nit trichy JBiMs, Mumbai

2.1 - 5.0 iit Madras (doMs)

amrita soB, coimbatore

iit delhi (dMs)iit roorkee (dMs)

irMa (anand)

5.1 - 7.5 iisWBM, Kolkataiit Kharagpur (VGsoM)

nitie, Mumbai iift, delhi ipe, hyderabad nMiMs, Mumbai GiM, Goa

7.6 - 9.0 LiBa, chennainirma university (ioM)

iiM shillong iiM Kashipuriit Bombay (sJMsoM)

BiMtech, Greater noida

psG ioM, coimbatore

9.1 - 10.0 iiM ranchi iiM udaipur iiM rohtak ifiM Bangalore iiM raipurXiM Bhubaneswar

ifMr chennai

10.1 - 12.0 iiM trichy iiM Lucknow fore soM, delhi spJiMr Mumbai siBM, pune

12.1 - 14.0 iBs, hyderabad iMt, Ghaziabad iiM Kozhikode iiM, indore iMi, delhi tapMi, Manipal

14.1 - 17.0 XLri, Jamshedpur

Mdi, Gurgaon iiM ahmedabadGreat Lakes, chennai

iiM calcutta iiM Bangalore

24.0 isB, hyderabad and Mohali

8.0 cost of management educationManagement is a combination of Arts, Commerce and Sci-ence. Further, the increasing number of specializations and hands-on training exposure for an MBA candidate adds to the complexity of not having a straight answer to ‘What should be the ideal cost of a full-time management programme?’

In 2007, the best of the management institutes offered the coveted management degree/diploma in less than Rs. 5 lakhs. Since then there has been a steady increase every year in both public and private institutes barring some, particularly at the university management departments. The average fee in private institutions (Careers360 top 100 institutes in 2013-14) stands at 5.43 lakhs, while the corresponding figure for public institutions (Careers360 top 50 in 2013-14) is 5.3 lakhs.Table 8.0 is indicative of the fee-structure in various institutes.

As the Table below shows cost too varies across the domain. Public schools invariably are the lowest cost options with an FMS Delhi degree costing less than a lakh of rupees for the entire programme. On the other hand most IIMs cost upwards of 10 lakhs and some of the top players go up to 17- 18 lakhs for a two-year programmes. In an opportunity- starved coun-try like ours, should education be this prohibitively expensive is a question for which Institutions and academicians have no direct answer. But cost does remain a crucial factor in the selection of institute by most students, but is not the sole deciding factor.

9.0 placements and roiThe primary concern for most of the parents, more than the students, is on salary that his/her ward is likely to get after completing the course. Though job placements have seen an upward curve this year, it does not seem to create an aura of hope. The graduates who received offers of Rs 4 lakh annually or less are cautioning the MBA aspirants in the wake of rising fees, and high interest rates on education loans thus scripting a complex algorithm to resolve their EMI payout.

The return on investment (RoI) works out to be a preferred tool while selecting a B-School, given that the quality of education is not affected significantly. Since the outcome of management education is lifelong, factoring in the status of alumni after his passing out and his/her foregone salary should be crucial in computing the RoI. However, owing to data insufficiency, making use of available information on the programme fees and the average remuneration offered, substitutes for the same. Table 9.0 gives a list of such institutes that score high on average placements

But if one attempts to calculate an RoI based on cost/average annual salary most of these schools may not be very attractive proposition especially for the students in the lowest quartile. But the charm of an MBA still lures them on.

9.1 alumni involvement Traditionally average salary is the preferred means to exam-ine the value of the student. While it has its own merit and standing, it is the quality of companies that come to campus, the kind of profiles that students get that matters the most in the long run. We have attempted to capture both the details based on publicly available profiles of B-Schools’ alumni on LinkedIn, the popular social media site for professionals (Read more about the process in the methodology section).

9.2 What is on offer This year we have gathered alumni profiles for 2010, 2011, 2012 and 2013. We have made individual profiles for 200+ colleges that have an alumni presence. For a detailed look at the alumni and profiles of all the colleges ranked do visit our portal www.bschool.careers360.com. The website also contains pen-pictures of over 100 companies that have large recruitments from B-Schools.

An MBA is a costly proposition. So it is only in the fitness of things that a student gets all the possible assistance so that he or she decides right and decides better. The incorporation of alumni component into the ranking process is a step in that direction.



ChROnOlOGy Of EVEnTSdecember 2010AICTE brings up a new set of notifications on PGDM programmes

January – July 2010Dr Ramana, ITM group, EPSI, AIMS and others file a series of petition challenging the validity of the noti-fication. Relief for a year follows which is extended each year and continues even now until 2014-15.

May - 2013Supreme Court comes up with an order which makes AICTE an advisory body and treats all affiliated col-leges as part of universities. It leaves the status of PGDM and FPM in thin air

UGC in the meantime comes up with its own set of half-baked regulations.

January 2014 Based on an I/O in the EPSI case, Supreme Court orders the continuation of PGDM administration by AICTE.

An order to the same effect was passed on the Orissa Technical Educators Association as well.

april 17 2014In Orissa Technical Association case, in a clarifica-tory order the Supreme Court restores the powers of AICTE for the academic year 2014-15

the core issues are: l Status of Technical Education in the light of May

25, 2013 judgment

l The status of PGDM/FPM programmes as recog-nized by AIU (this is contingent upon approval by AICTE)

l The status of rules notified by AICTE on Decem-ber 2010 and its impact on PGDM programme

l What next onn Durationn Entrance exam & Admission processn Approvaln Fee and Session Timing

10.0 regulatory framework for the domain This sector has been drastically impacted by judicial activ-ism at different times. As Prof. S.S Mantha, Chairman, AICTE argues it is essential that the anomalies, pointed out by the Bharadhisan University versus AICTE, 2001 judgment must be countered by a comprehensive legislation that would bring all forms of technical education under the purview of AICTE, which must necessarily include the venerable IITS. Institu-tional elitism and the perpetual need to seek exceptions must go away.

Technical education has been mauled by three major judgments. The Bhartidasan judgment, took universities out of AICTE jurisdiction. The Delhi High Court’s interim judg-ment resulted in distance education B.Tech programme. The Supreme Court judgment by Justice Chauhan took away both management and engineering and even affiliated colleges outside the purview of AICTE. This was partially restored for a year by another bench of the same court.

And in a dramatic usurpation of turf, University Grants com-mission came up with regulations for technical education as well. An institution that does not even have complete data on the number affiliated Arts and Science colleges in the country, now wants to regulate technical institutions. And the Ministry of HRD was a mute spectator to the emasculation of one its own autonomous body by another, until a court order came to AICTE’s rescue partly.

A comprehensive and foolproof legislation is the need of the hour and AICTE’s mandate to regulate technical education must be respected says Prof. A. Sethuraman, Vice Chancellor, SASTRA University, Thanjavur.

Way forwardThe regulatory scenario is just not inviting. Seats in Tier-2 schools almost go begging. Even top-tier schools are not able to place all their students due to batch size expansion. The market for MBA/PGDM is undergoing drastic changes.

The questions before the educators are ●● Are institutions willing to up the transparency quotient? ●● Are corporations willing to invest in good schools? ●● Are regulators willing to assist and promote rather than

resist and obstruct? ●● Will we have a better MBA ecosystem in the country?

The students need an answer. They deserve it! u

Key issues for discussion ●● The regulatory regime is now held hostage to one-year reprieves offered

by courts. EPSI is fighting a valiant battle. What is the next move and what needs to be done to ensure regulatory clarity?

●● There has been a huge row about RoI from an MBA/PGDM programme. Is there a fair way to balance the concern of students and schools?

●● How do affiliated MBA schools overcome or work around the curriculum issue? Should B-Schools engage in reinventing the wheel or consider novelty in programme offerings (say multi-disciplines)?

●● Is there enough freedom to get into industry collaborations, especially of long-term nature? How to address regulatory hindrances, if any?

●● Shouldn’t the student have the power to move from one institution to the other in case he/she is not satisfied with the promises made by the institute?

●● Barring 10-12 B-Schools that have well-funded PhD programmes, none of the schools has invested in a feeder faculty programme. How will we get good faculty members in adequate numbers?

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Management Education in India - August 2014

Education

Transcript of Management Education in India - August 2014