In a “not-so-surprising” yet unexpected news, the budding MBA graduates seem to have been running out on their luck in the recent present times. Back in 2012, a study revealed that out of 5 lakh pursuing MBA only one fifth seem fit for jobs. A revised analysis reveals that only 10% of the graduating MBAs are employable!
With the 13 top functional IIM churning out business talents, the ones who get rejected turn to private institutions. Look at these stats…
More than 3 lakh students undergo the MBA course whereas the industry demands only 35,000-40,000. However the ones who study in IIMs graduate sign a deal with big corporates, and there are the others who barely get a Rs. 20,000 job (that too if they are lucky!)
In 2013, Mr Jay Bhatti, co-founder of ZABA Search ( or previously known as Spock.com is the world’s leading search engine on people) went on record saying, “ If you can’t get into a top five MBA program, don’t even bother”.
When he said, top 5 MBA programs, he meant graduating from Wharton, Stanford, Kellogg, Harvard or MIT. Sure the words stirred up a minor controversy, but the situation is no different here back home.
The ones who can bell the “CAT”, graduate with pretty good offers, which seems as a relief after paying hefty fees. However most of the MBA aspirants will tell you they’d want to get into one of these: IIM Ahmedabad, Bangalore or Kolkata.
But there are other 3,364 institutions that provide MBA that co-exist, getting a job for outgoing graduates from these firms has been a nightmare.
Dig deep into the problem and you’ll know there are 2 reasons why the industry is tight zipped when it comes to hiring them – Lack of industry skills and excess supply.
Many industry experts feel that the syllabus does not go hand in hand with the Industry and global trends. With easy evaluations and less practical knowledge workshops, students are confined in a bookish atmosphere while MBA is a vibrant course that must help them take their business forward in the dynamic atmosphere.
Aware of the industry trends, Mr R Nandagopal, a director of a B-school said, “Many institutes do not have faculty with industrial experience. Some wish to join a management institute immediately after completing their postgraduate study. While in the US and Europe, institutes consider work experience as a criterion for admission to MBA.”
Another tech entrepreneur, Mr Ruzan Khambhatta expressed his concern about the dipping MBA student quality last year in an article. He said, “The employability of MBAs have decreased because the quality of business schools has dipped. Besides better training and imparting soft skills, management institutes must ensure better interaction between students and industry. This would help in conveying the expectation of the industry to future managers.”
The campus recruitments have gone down by almost 40% this fiscal where the management seats are presently stabilized at 4 lakhs (approx.) However in this hoopla, 180 B-schools shut down due to dearth in MBA faculty.
Smriti Irani, the HRD minister has given a green signal to set up more IIMs to help more students get quality business education. With IIMs doing an impressive job, in the recent past India has attracted more MBA aspiring student population.
Let’s hope our B-school gurus revisit their syllabus so that our business administrators don’t have to wait for a miracle (taaki unke saath koi chamatkar na ho jaye!
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