THE TOP 10
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1 |
Indian Institute of Management
Ahmedabad |
2 |
Indian Institute of Management
Bangalore |
3 |
Indian Institute of Management
Calcutta |
4 |
Symbiosis, Pune |
5 |
Indian Institute of Management
Lucknow |
6 |
XLRI, Jamshedpur |
7 |
JBIMS, Mumbai |
8 |
Indian Institute of Management
Indore |
9 |
Faculty of Management Studies,
Delhi |
10 |
Indian Institute of Foreign
Trade, Delhi |
By
all accounts, management education in India is booming. At last
count, there were 1,257 approved business schools, 125,000 full-time
and 100,000 distance MBA students, and another 130,000 MBA wannabes
taking the common admission test (cat) every year. As for the
recruiters, they just can't seem to get enough of the talent graduating
from the top B-schools. Result: Indian companies that were traditionally
Day Zero (that is, the first to interview students at campus placements)
at, say, IIM Ahmedabad or Bangalore, are getting pushed to Day
One by global I-banks and consulting firms, and salaries are going
through the roof.
The highest dollar salary offer this year
was $193,000 (Rs 88.78 lakh) and went to an IIM Bangalore grad.
(For the record, the Hyderabad-based Indian School of Business
or ISB snagged the highest dollar salary of $233,800, or Rs 1.08
crore, but two caveats are in order: One, the student had 10 years
of work experience and, two, ISB is not part of our survey, since
it only runs a one-year MBA programme, unlike the two-year courses
this survey considers.) The scramble for talent isn't surprising.
With the economy growing at more than 8 per cent and the services
sector booming, companies are hiring by the hundreds. Tech giant
Infosys, for example, hired 417 fresh MBAs this year, compared
to 181 the year before.
Given
that backdrop, what does the fourth (the seventh, in all) Business
Today-ACNielsen ORG-MARG survey of business schools in the country
reveal? Let's begin with the rankings. IIM Ahmedabad, despite
losing score, remains the #1 B-school by far. Its brand equity
score of 5.06 (see How We Did It on page 162 for details on the
methodology) is almost double that of #2, IIM-B, which actually
has improved its score to 2.65. IIM Calcutta also lost points,
but regained its #3 position from FMS Delhi. The surprise this
year, however, was Symbiosis, which jumped to the #4 slot, ahead
of IIM Lucknow and XLRI Jamshedpur.
Before we go any further, a word of caution:
The BT-ACNielsen ORG-MARG survey is based on the perceptions of
B-school stakeholders, comprising recruiters, functional heads,
MBA wannabes, MBA students and young executives. While it does
ask them to rank a shortlist of 30 schools on eight broad attributes,
including things like reputation, infrastructure and faculty,
it does not quantitatively measure any of the attributes. To that
extent, the survey works like an exit poll-the B-school ranks
reveal how our 526 respondents voted on each of the 30 schools.
Unfortunately, that also means some high-decibel B-school advertisers
end up garnering higher salience, while some others (better schools,
but not as aggressive advertisers) rank lower on popular perception.
So, we wouldn't be surprised if some of our readers didn't agree
with the rankings.
Coming
back to the findings of the survey, there's a clear indication
that the B-school 'consumer', meaning MBA wannabes and recruiters,
is getting more and more demanding. Take placements, for example.
Unlike in our previous surveys, the respondents put greater emphasis
on the quality of placements rather than the success of placements.
In other words, if you are a B-school, it's not enough if you
achieve 100 per cent placement; where you place your graduates
and for how much matter more. As for the recruiters, they gave
the highest weightage to B-school infrastructure, followed by
its reputation. Quality of placements and the availability of
specialised courses were also two other important considerations
for them.
Seen as brands, our top B-schools lost a
bit of their sheen. While IIM-A continues to be the only monopoly
brand (monopoly brands have a brand equity index score between
4 and 6) over the last four years, the other B-schools have been
gaining and losing. Until last year, there were half-a-dozen distinct
brands (with scores between 2 and 3), including IIM-B, IIM-C,
XLRI, Indian Institute of Foreign Trade (IIFT) and FMS Delhi.
But this year, there was just one: IIM-B, which was also the only
winning brand, the category between monopoly and distinct brands.
Why does the distinction matter? Because recruiters and MBA wannabes
are choosy about from where they hire and graduate, respectively.
The more exclusive the brand, the better their takeout.
Problem Of Paucity
That said, it is a fact that tier-II schools
have been pulling up their socks, prompting some of the top-drawer
recruiters to visit their campuses. However, the bigger reason
why recruiters are diversifying is two-fold: Insufficient supply
from the IIMs and, consequently, high expectations of compensation.
Take Infosys, for example. This year, IT made 547 offers in all,
but only 417 were accepted. At IIM A, B and C, Infosys made nine
offers, but just five joined. Says T.V. Mohandas Pai, Director
(HR): "The IIMs should be graduating three to four times
of what they currently do. Indian industry is being deprived of
talent."
The point Pai is trying to drive home is
that Indian recruiters in particular are being crowded out of
the IIMs by foreign companies, who lure students with top-dollar
salaries and foreign postings. As a result, "B-school salaries
are going up faster than what industry can afford," notes
Pai. That isn't the only complaint that recruiters have. Others
like K. Ramkumar, Senior General Manager, ICICI Bank, say that
there has been no significant change over the years in the knowledge
body of B-schools. "Tell me which school offers a course
in sales management?" he asks. This year, ICICI hired 85
MBA grads from tier-I schools, 400 from tier-II and 1,000 from
tier-III.
As
a result, some of the big employers are partnering with B-schools
to come up with customised courses. Last year, Hindustan Lever,
which hires between 25 and 30 fresh MBAs every year, ran a full-credit
course on "marketing in practice" at IIM-C. The content
was drawn up in consultation with the IIM-C faculty, but was taught
by HLL's own managers. Explains D. Harish, Vice President (HR),
HLL: "Since recruitment is quite an intensive affair, we'd
rather spend our energies on tier-I institutions, which provide
us appropriate talent." Come August, ICICI Bank's Ramkumar
will also be meeting with tier-II B-schools to devise courses
that are more relevant for financial services companies like ICICI
Bank. Already, Ramkumar reveals, some 3,000 students at tier-II
and tier-III B-schools are studying banking as part of their curriculum.
"The premier schools are difficult to influence, but we are
working with the tier-II and III schools," he says.
For such B-schools, it's a win-win deal.
They not only get the relevant knowledge and faculty from industry,
but also ready recruiters. It will be a long time before any one
of them gets close to where IIM-A is, but there's no doubt they
are on the right track.
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