Tuesday, March 06, 2007
Every Three Out Of Four MBAs Are Unemployable, Says Study
DNA - 27 Feb' 07
Every Three Out Of Four MBAs Are Unemployable, Says Study
When Mr Sayrajesh Menon of Kochi graduated from a B-school in Hyderabad in 2005, he had no doubt he would join an MNC. Instead he joined India’s legion of jobless MBAs. He began to joke wryly that having an MBA and not having a job was “Mean, Bad and Awful.” Last month he settled for a lesser job in a call centre in Bangalore. Mr Menon’s plight is understandable. Premier skills-testing agency MeritTrac has just concluded, after testing 790 B-school graduates in six cities on seven key parameters, that 77 per cent of them are “unemployable”.
Heads of some top B-schools say this finding doesn’t surprise them. “The industry is employing more and more students and finding later that many of them are not worth recruiting,” said IIM-Bangalore Director Mr Prakash Apte. The anomaly runs deeper. Every year India Inc needs some 1,28,000 MBAs 2,000 as CEOs and the rest at other levels. There are 1,257 B-schools recognised by the All-India Council for Technical Education turning out only 70,000 MBAs. MeritTrac’s study sample covered this “recognised” talent pool and found that only 23 pct of them were of employable quality. Mr Kris Lakshmikanth of Headhunters India in Bangalore points out that many MBAs have to join small companies to improve their skills before trying their luck with bigger firms. Though Indian Institutes of Management were excluded from the survey, the IIM-Bangalore director attributes “poor quality of students to poor faculty rather than poor infrastructure” and says even IIMs and IITs are no exception.
He suggests that salaries must be raised to attract better teachers who are getting lucrative offers from the market.
Every Three Out Of Four MBAs Are Unemployable, Says Study
When Mr Sayrajesh Menon of Kochi graduated from a B-school in Hyderabad in 2005, he had no doubt he would join an MNC. Instead he joined India’s legion of jobless MBAs. He began to joke wryly that having an MBA and not having a job was “Mean, Bad and Awful.” Last month he settled for a lesser job in a call centre in Bangalore. Mr Menon’s plight is understandable. Premier skills-testing agency MeritTrac has just concluded, after testing 790 B-school graduates in six cities on seven key parameters, that 77 per cent of them are “unemployable”.
Heads of some top B-schools say this finding doesn’t surprise them. “The industry is employing more and more students and finding later that many of them are not worth recruiting,” said IIM-Bangalore Director Mr Prakash Apte. The anomaly runs deeper. Every year India Inc needs some 1,28,000 MBAs 2,000 as CEOs and the rest at other levels. There are 1,257 B-schools recognised by the All-India Council for Technical Education turning out only 70,000 MBAs. MeritTrac’s study sample covered this “recognised” talent pool and found that only 23 pct of them were of employable quality. Mr Kris Lakshmikanth of Headhunters India in Bangalore points out that many MBAs have to join small companies to improve their skills before trying their luck with bigger firms. Though Indian Institutes of Management were excluded from the survey, the IIM-Bangalore director attributes “poor quality of students to poor faculty rather than poor infrastructure” and says even IIMs and IITs are no exception.
He suggests that salaries must be raised to attract better teachers who are getting lucrative offers from the market.
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