In the light of movement of India from an agricultural economy to a knowledge economy, there has been a dramatic growth in the importance of MBA education in the country. This is evident in the ever-increasing number of B schools in the country, which touched 5500 in the year 2015-2016. According to a report by the Indian Express, the number of seats in the course has increased by over 40% from 3,60,000 in 2011-12 to 5,20,000 in 2015-16. Further shedding light on the importance of MBA education with India Today, Dr Bakul Dholakia, (former Director General of International Management Institute, New Delhi) remarked that management education leads to the holistic development of an individual by helping them procure skill-sets to adjust to the dynamic challenges being faced by businesses.
While we see the ever-increasing importance of MBA on one hand, on the other hand, we have seen a stark decrease in the employability of these graduates. A study by ASSOCHAM has found that only 7 percent of these graduates are employable with only a handful of others bagging well-paying jobs. This can be attributed to the declining quality of education along with the decrease in campus recruitments owing to economic slowdown from 2014-16.
Management Entrance exams in India
There are over 30 exams which are conducted in India providing admission to various B Schools. With over 2 lakh takers each year, Common Admission Test (CAT) is the most popular exam to seek admission to premier B schools all over the country. The exam is conducted in November and is considered to be the toughest management entrance exams in the world. Other popular exams include Xavier Aptitude Test (XAT), NMAT, Indian Institute of Foreign Trade (IIFT) etc. Moreover, the major disciplines of MBA include Marketing, Finance, Human Resource, Banking and Finance etc. with a largely skewed ratio in the favour of the former two streams.
Analysis of Management education in India
Management education is being imparted in the country through a three tier structure primarily with institutes like IIM’s forming the first tier providing best quality management education in collaboration with foreign universities such as Harvard and MIT. The second tier institutes are affiliated to bodies like All India Management Education. However, we have seen a major increase in the number of institutes belonging to the third tier with affiliation to institutions like All India Council for Technical Education (AICTE) and other bodies like National Board of Accreditation for Education and Training. As per AIMA Journal of Management and Research, a majority of these institutions have mushroomed across the country operating without proper academic standards which results in management graduates being ill prepared to take on managerial positions in organisations. Thus while seeking admission it is essential that the aspirants conduct a complete analysis of the institutions regarding their affiliation.
The education system in India had turned into a business source than an effort to educate the people of the country. The quality of High school education in India is in such a Dreadful state that even the quality of students from IIMs and the IITs become progressively worse.
There are certain institutes that offer one-year post graduation or diploma courses for business administration and some premier institute conduct two-year distance learning MBA program. The students can select the course according to their requirement. India now has become a globally recognized country for running top grade business management schools, and the majority of these schools also conduct distance MBA program. Among them, IIM Ahmadabad, IIT Delhi, IIFT have been considered to be the best in offering online MBA programs in India.
Mr. A.K. Shrivastava, Chairman, Asia-Pacific Institute of Management says, to deliver quality management education on par with global standards, Earlier MBA graduates in India walked from months of agonizing unemployment after graduation. Why is management education failing to deliver? What about the promise to help the graduates secure a fulfilling career? What about the promise of bringing out the nation as a whole out of poverty? Mr. Shrivastava further adds, the main issue is with the depreciating value of MBA or PGDM in India is scarcity versus abundance. There are many business schools that are worst in all Situations and like mushrooms around the country. There is an abundance of in states but an alarming scarcity of quality education.
So, What is the way out?– With economic sentiments improving or at least remaining volatile, there is need to keep abreast with new developments and enhance skills at all levels of management has become very important today. The clue to success is maintaining the quality throughout the process.
Hence the biggest step needs to be taken by the government of India is to allow the education system to function freely, to reap the demographic dividend of its large youth population. Indian management institutes are the only ones with no international participation. It’s Important for B-schools to induct a few international faculties and provide an opportunity to the students to listen to other country’s business culture and systems. Indian Management Institutes must be flexible, innovative and responsive to the dictates of changing the environment. Companies have to adopt colleges, training their faculty and sharing the latest industry knowledge with them. Indian Management Education has to think in the direction of “developing people before developing products.”
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