January 25, 2006

IIM Games

Previous article here

A student from one of the Indian Institutes of Management has reportedly been offered a monthly remuneration of Rs. 16 lacs by a prospective employer.


Going behind this news item, it tends to simply highlight the game plan the IIMs have been apparently following in order to create an aura of awe about them and project them as Institutes of Excellence.


First, the IIMs restrict the number of admissions each year to a number that is far below the requirements of the country's growing economy. This is cleverly done under the garb of maintaining the level of standards but actually it is the number of admissions opened that determines the level at which the students are accepted.


Second, due to the gross imbalance between demand and the artificially managed supply, prospective employers are desperate to engage the MBAs by offering exorbitantly high salaries. Year after year, the IIMs use this fact to cleverly market their product viz. the MBAs in a way that creates a virtual scramble and a queue of the prospective employers at their doorsteps leading to further increase in the average remuneration offered to their MBAs.


As the demand-supply gap is magnified by the clever marketing, the employers tend to grab whatever talent is available even by paying unjustifiably high remunerations lest they be left without qualified managers.


What all this does is that it creates in the minds of the public in general and the employers in particular an impression that the IIMs turn out super managers. In course of time, even the IIMs themselves start believing that they are super institutions.


At the end of the day, however, the country is left with a large gap in the supply of managers to run the growing industry and service sectors.


There is all the more reason that as long as the Government continues to have a say in the affairs of these Institutes, it should exercise its influence to compel them to perform their tasks better, not just bask in the false glory of the high salaries that their students manage to secure.

9 comments:

P.K.Dutta, Kolkatta said...

The State Governments in whose State the IIMs are located should also look into this and ensure that IIMs take care of their own states' requirements of MBAs and attract more students from other parts of the country so that the infrastructure can be utilised fully and it will benefit both the State as well as the country.

Diminutive-Indian said...

//This is cleverly done under the garb of maintaining the level of standards //

If IIMs says that increasing the intake will lower the quality, they they should do a serious introspection. What sort of learning process they have at IIM which can guarantee high standard to just 100 students. If it is, then their process needs overhauling. This is same as Toyota will say that we can produce only 100 vehicles per year cause increasing the number will lessen the quality.
Is the process at IIM so pathetic that it will crumble with more intake ? and yet they want to go abroad.

Every person who is even little bit aware of the corporate world will know the truth behind these astronomical salary and placements being over by day 1(placments starts at something like day 0, day 0.5...)

It is the nefarious design of IIMs to keep down the supply and create an artificial contraint. At these times when Indian govt is doing so much to increase the levels of our economy and growth rate, one of the institutions funded by govt is not letting the country have the requisite number of managers.

They harp about autonomy, let them explain what is autonomy ? Is the govt coming and changing the syllabus, designing the courses and even introducing the new courses ? if not, then what autonomy they are talking about ?

The IIMs harp about the placement statistics. Do they think placement figures are reflective of the learning the managers got at IIM ? or it reflective of selection in CAT . Let there be fair assessment of what is level of teaching in IIMs but that is possible only when there is sufficient number of graduates from IIMs. The too few graduates don't give an opportunity for this assessment.

This assessment can be seen in the global ranking or global position of IIMs. And we all know what is the position of IIM globally.

There has lot to be desired from IIMs than going abroad. Sadly, Glamour has overtaken learning.

Mowgli said...

D-Indian ... have to agree with you!!

india-awake said...

The comments of the readers are absolutely right. We need more 'thinking' people like them than those who just jump on the emotional band-wagon of autonomy, foreign recognition etc.

Dr. S.C. Ghosh said...

IIMs have to shed their self praise mentality and introspect whether they are providing the service expected of them by the country.

IIMian said...

Looks like
the guy who wrote it was rejected by IIM
if taking in more students won't have an impact on quality well lets let the reservatiopn brigade come in and take 27% additional seats too
If this is true then why do all psychological studies prove lower teacher student ration is good
more IIM gradutes fuel indian economy, no dude they will ll go abroad
All crap

K. Dubash said...

what iimian has writen doesnt make any sense. he is incoherent.No one says that teacher student ratio should be changed. Do you mean to say that other prestigious institutions abroad have the same number of students that these local IIMs take?

Aashish said...

Firstly, the argument about selection procedure.

Private entities, corporations, companies recruit and select from Institutes they prefer. Salaries are decided based on their discretions. And frankly, who wishes to dole out more than necessary money to acquire a talent - however rich or poor it may be in terms of performance.

Assume that a previous passed out batch of selected graduates performs well in a company. Would it think twice about visiting the same college for campus placements? Fat chance if D-Indians arguments are considered convincing.

Let's assume for a minute that D-Indian's argument of placements being reflective of selection procedure is true. This suggests that companies selecting the IIM grads have somehow fooled themselves into handing out fat pay jobs to management graduates who have been in turn selected through some ill-designed selection procedure at these institutes (of excellence). This also suggests that somehow the HRs of these companies throughout these years (or decades) haven't had second thoughts about the selection procedures authenticity.Never mind how many of their employees each year have been IIM grads.

Or even worse still, the companies are aware of improper selection at the time of admission, but their recruitment procedures are subject to the hype and glamor associated with selecting an IIM grad, or that their selection policies are not up to the mark.

What Say D-Indian. I am not too sure of your argument.

Secondly,
do we need to assess the level of teaching at the IIMs?
Yes, most academics will agree. and they also demand a periodical assessment. If I am not too mistaken, the IIMs must be having their own assessment procedures.
Nevertheless, it is a point to ponder, when an argument is taken up against level of teaching vis-a-vis student count. Since when did we start equating student intake to assembly line car production? level of teaching is as much of concern to the teacher as it is of concern to parent, student or the state.

And demanding 101 instead of 100 won't change assessment. Limited edition Toyotas earn crores per individual model. Assembly line Toyotas earn Lakhs.

What say, I don't want to see IIMs being made out into assembly line sort of unit. Even at the cost of less managers through IIMs.

Puh leeeeaasse dont touch IIMs. if you can, then set up new units and churn out assembly line products over there.

Aashish said...

Firstly, the argument about selection procedure.

Private entities, corporations, companies recruit and select from Institutes they prefer. Salaries are decided based on their discretions. And frankly, who wishes to dole out more than necessary money to acquire a talent - however rich or poor it may be in terms of performance.

Assume that a previous passed out batch of selected graduates performs well in a company. Would it think twice about visiting the same college for campus placements? Fat chance if D-Indians arguments are considered convincing.

Let's assume for a minute that D-Indian's argument of placements being reflective of selection procedure is true. This suggests that companies selecting the IIM grads have somehow fooled themselves into handing out fat pay jobs to management graduates who have been in turn selected through some ill-designed selection procedure at these institutes (of excellence). This also suggests that somehow the HRs of these companies throughout these years (or decades) haven't had second thoughts about the selection procedures authenticity.Never mind how many of their employees each year have been IIM grads.

Or even worse still, the companies are aware of improper selection at the time of admission, but their recruitment procedures are subject to the hype and glamor associated with selecting an IIM grad, or that their selection policies are not up to the mark.

What Say D-Indian. I am not too sure of your argument.

Secondly,
do we need to assess the level of teaching at the IIMs?
Yes, most academics will agree. and they also demand a periodical assessment. If I am not too mistaken, the IIMs must be having their own assessment procedures.
Nevertheless, it is a point to ponder, when an argument is taken up against level of teaching vis-a-vis student count. Since when did we start equating student intake to assembly line car production? level of teaching is as much of concern to the teacher as it is of concern to parent, student or the state.

And demanding 101 instead of 100 won't change assessment. Limited edition Toyotas earn crores per individual model. Assembly line Toyotas earn Lakhs.

What say, I don't want to see IIMs being made out into assembly line sort of unit. Even at the cost of less managers through IIMs.

Puh leeeeaasse dont touch IIMs. if you can, then set up new units and churn out assembly line products over there.