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An MBA degree in India has always been perceived as a confirmed ticket to a prosperous future. Well, more often than not this view holds correct because of several factors that come into play, including increased job opportunities (across multiple sectors), high packages, job security and more. However, with the changing times, the sector dynamics have changed too, and today the same popular perceptions hold true only for the top-most management institutes.

Market Stats

A survey conducted by a solutions company in Gurgaon - Aspiring Minds, analyzed the employability quotient of the MBA graduates in India. 32,000 graduates from about 220 institutes across the country were studied. It was found that less than 10% of the students were eligible for good jobs in finance, marketing or human resource fields.

The employability quotient of MBA pass-outs was 7.69% in BFSI sector and 6.99% in Marketing sector. On the other hand, employability was at 9.63% amongst the Human Resource graduates. It was as low as 2.52% in the Business Consulting roles. These numbers show the appalling reality that the MBA graduates are faced with once they complete their management programs.

Employability quotient of MBA pass-outs

In fact, there are other studies which paint a far dreary picture. According to ASSOCHAM, the employability percentage among the MBA graduates is as low as 7%.

Quality of Education

In the 1900s there were just over a hundred management schools offering MBA degrees in India, a figure which has crossed the 5000 mark over a period of time. Albeit the number of such schools have increased continuously, a similar rise hasn’t been seen in the standards of the education being imparted.

The number of seats available in the top tier management schools fall short of the demand each year, because of which Tier-2 and Tier-3 management institutes see a rise in their intakes. But the quality of education in many of these institutes is not really up to the mark.

Many colleges fail to meet the international benchmarks and aren’t able to impart the required skillsets and edge in their students. Some colleges even fail to update their syllabus and teaching methodologies, and are found wanting with regard to the changing demands of the industry. Lesser salaries fail to attract competent teachers, which further negatively impacts the quality of the passing-out students.

Lower Market Intake

Owing to the bad performance of the Indian economy over the past few years (especially from 2014 to 2016), the campus placements have reduced by 45%. In 2016-17, there was a 4% decline of in the placement figures compared to the previous year, and only 47% MBA pass-outs could secure a job.

This led to the shutting down of many B schools in the major cities, a pattern which is only expected to rise. Additionally, it is also being observed that fresh graduates are settling for lesser paying jobs because of the above-specified factors.

Though the entrance examinations of management institutes filter students based on their quantitative and analytical abilities, they completely ignore soft skills which might be required for a pass-out to perform well in day-to-day job situations. Even the institutes fail to equip the students with skills such as emotional competence. This is one of the reasons why new recruits find it very challenging to continue in their jobs, and forces the employers to look for people with prior work experience.

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