We are living through the golden age of startups, online marketplaces and global enterprises, yet there are fewer jobs for MBA graduates than ever before. Some blame it on the colleges and their outdated teaching techniques; others blame the students and their lack of soft skills, while some even go as far as to blame the dynamic nature of the marketplace for making the MBA skill set obsolete. Yet many students are still unaware of this critical state of the job market for MBA graduates and are still pursuing management courses. Thus, before applying to a management course with a dream of a lucrative career, every management aspirant must question:
Are there enough jobs for MBA Graduates?
A recent report by the All India Council for Technical Education (AICTE) exposes the grave condition of the Indian Management universe. According to AICTE, the academic year of 2016-17 reveals an alarming decline in the number of MBA graduates getting placed in well-paid jobs. In fact, more than half of the MBA graduates (53%) could not get hired in campus placements. The number of job placements for MBA graduates during this academic year was 4% less than the previous year and at a five year low.
The 45% decrease in campus recruitment of MBA graduates have gravely affected the business schools as well. According to the data collected by AICTE, more than 220 management institutes in Tier-1 cities of India have shut down their management programs and 120 more B-schools are slated to meet the same fate.
The gravity of this situation could be acknowledged with a recent incident in Chennai, Tamil Nadu that unveiled around 4000 engineering and MBA graduates registering themselves for as many as 14 sanitary workers job.
In an interview with a TV Channel, the All India Council for Technical Education (AICTE) Chairman Anil Sahasrabudhe, himself accepted the critical state of the Indian Job Market for Management students. He said, “Days for big recruitment sectors such as IT and BPO industry are over and there would be no mass hiring industries in India in the near future.”
Under such circumstances, every student who is aspiring for a management course is thinking twice before applying to an MBA institute and wondering about:
Reasons for a decline in Jobs for MBA Graduates
Some of the reasons for the decline in the placement opportunities for MBA graduates have been studied and well documented. A book titled ‘Job crisis in India’ written by business journalist Raghavan Jagannathan talks about the high prevalence of unemployment in India. He points out the absence of skills required in the highly technical nature of jobs (a.k.a management) as the reason for such grim circumstances. To further add to his point, he states that in the majority of cases, the training acquired by the students don’t match the core demand of the job.
However, the outdated MBA curriculum is the main reason for the decline in the job for MBA degree holders in India. The management curriculum has not been reviewed by colleges and universities as per the latest trends in the corporate sector.
According to Dr Bakul Dholakia, Director General, IMI, Delhi, a management program must provide a holistic development of managerial skills to the students through exposure to case studies, industry training, teaching, consultancy and research and interaction with industry leaders since all these aspects helps students cultivate efficient skill sets that make them industry ready.
Another reason for the decline in jobs for MBA graduates is the wide range of qualifications handed out by the various institutes that range from a degree to a diploma, from a full-time to an online programme. All these claim to be a valid MBA degree without a measurable scale for the employer with which to evaluate.
Management Institutes these days also compromise on the quality of the faculty due to the unavailability of experienced faculty and the cost of recruiting such faculty members. Ideally, the faculty of an MBA college must be businessmen and industry leaders so that the students get to learn from their experience. Barring top Institutes like IIMs, such sessions are rarely conducted in the colleges.
Considering all the factors associated with the rapid decline in the job market and increase in the unemployability of MBA graduates, it is quite difficult to put faith in such MBA institutes. These institutes focus more on filling their pockets with extravagant fees rather than creating an industry-ready individual with a secure job in the corporate sector.