The Challenging face of Management Education
Management education today has moved away from traditional areas of marketing. Finances and HR to specialised domains such as environment, sustainability, energy management, social and governance, CSR, infrastructure and technology.
INDIAN Institutes of Management (IIMS) promise corporate success, and aspirants perceive an excellent score on the Common Admission Test (CAT) as a certain way to climb that success ladder. No wonder 200,000 students vie for the 6,000 odd seats in the 20 IIMs across the country every year.
A graduate with more than a 50 per cent score (there is relaxation for reservation candidates) can apply for the CAT exam. This year, the CAT is slated for November 27 and will be conducted in three slots. The exam consists of three sections-Verbal Ability and Reading Comprehension (VARC), Data Interpretation and Logical Reasoning (DILR), and Quantitative Ability (QA). The paper comprises 66 questions-24, 20 and 22 in VARC, DILR and QA sections, respectively. Each MCQ question carries +3 marks, with a negative score (-1) for each wrong answer. Non-MCQ questions do not carry any negative marks for wrong answers.
Over the years, a score close to 50 per cent of the total marks gets a 99 percentile (top 1 per cent). Typically, a percentile above 95 can get a general category student call from quite a few items for the next selection stage-a writing ability test, WAT and a personal interview (PI). The top IIMs, Ahmedabad, Calcutta, and Bangalore, may require higher percentiles to make it to the next stage.
The second selection stage for these IIMs is based on WAT and Pl. The WAT and Pl stage is equally important as the written test and in some of the IIMs, the weightage of selection given for the second stage is higher than that for the CAT exam. The WAT consists of writing an essay of 250-300 words on a given topic. The topics are picked from economics, business, social issues, and political issues or sometimes may also have abstract topics. Institutes like IIM Ahmedabad give an argument and expect the students to write an analysis of the argument. The Pl is a critical component of the selection process as it probes into the reasons for pursuing an MBA and the student's future. Also, the interviewers expect the student to be aware of current affairs and their opinions.
CAT is a written test not just for the 20 IIMs and their flagship programme (MBA) but also for more than 200 other reputed MBA institutes, including the Faculty of Management Studies (FMS) Delhi, SPJIMR Mumbai, MDI Gurgaon, IMT Ghaziabad and IMI Delhi, among others.
With the number of B-schools increasing and the fees for the two-year MBA going up significantly in the last decade, it has become imperative to choose the right school. Each student may have different criteria for selecting a school. However, one can follow some broad guidelines to ensure admission to the desired school. The parameters on which the ranking of the schools is based include placements, batch strength, batch profile, fees, availability of specialisations, faculty, infrastructure and location.
While the students undeniably look at placements and the average package, the profile of the batch (subject background and work experience) is also essential. Fees (FMS, JBMIS), specialisation XLRI & TISS for HR, NI- TIE for Supply Chain, MICA for Marketing, IIFT for International Business, IIMA FABM, IIMLABM, IRMA for Rural Management and a preferred location (Mum bai, Delhi, Bangalore) are also considered by the students before making a final choice of the school. References of the alumni also matter in the selection in a B-School.
The NIRF ranking of business schools released by the government emphasises the component of published research work at the institute. However, it may be pertinent to note that the students desire better placements and internship opportunities at these schools rather than just the research avenues. Campus life, collaborative projects, exchange programmes, and visiting industry experts are also crucial factors in making the right choice.
The first decade of this century was the boom period for management education. With seven IIMs until 2008, the government announced six more IIMs in 2009 and 2015, one in 2016, taking the total to 20. At the same time, other top B-schools also expanded geographically or increased the batch size XLRI in Jamshedpur has opened another branch in Delhi-NCR, and IIFT Delhi has now opened in Kolkata and Kaki- nada. NMIMS has Mumbai, Navi-Mumbai, Bengaluru, Hyderabad, and Indore campuses. SIBM has expanded to Bengaluru, Hyderabad, Pune, and Nashik. IMT, known for its B-school at Ghaziabad, has opened campuses in Nagpur, Hyderabad, and Dubai.
The number of seats available for the students also has grown significantly over the last two decades without diluting the placements of these graduates. The overall placement scenario has been favourable save in the years of recession and COVID. With the Indian economy booming and the government's push to reach the $5 trillion GDP mark, the MBA sector will continue to attract talented young graduates. The government's focus on rural development, road and telecom infrastructure, housing, agriculture, food pro- cessing, smart cities, green energy, and health will open new avenues for the young MBAs.
Management education has moved from traditional marketing, finance and HR to specialised domains such as environment, sustainability, energy management, social and governance, CSR, infrastructure, and technology. "Technological disruptions have changed the entire facet of management, and new-age managers must adapt to these changes," opines Prof (Emeritus) Devendra Pathak, CEO, FORE Academy of Management Education, Gurugram. With more aspirants from art and commerce backgrounds competing with those from science and engineering, the diversity of talent will drive the sector further.
The story of start-up companies in India surpassing the billion-dollar valuation-unicorns is inspiring. Individuals with engineering and MBA backgrounds lead many of them. However, the entire unicorn ecosystem is not about MBAs and IITs. This leads us to conclude that there is a world beyond MBA and an opportunity beyond the glassy-corporate corridors. There is a need to encourage, mentor, fund and bring in gender parity among the graduates beyond metros.
The article was first published in Indian Express Nov 2022.
Co-authored with Mr ARKS Srinivas is a consultant CEO, IFACET
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