There are almost 5,000 management institutes in India with about 200,000 students passing out during the year 2016-2017. With this there is a problem of a job crisis throughout the country.
Back in the 90’s, these MBAs were hired by large companies to take them forward in terms of international standards. These MBAs had developed skills and knowledge which age old company owners could learn and benefit from monetarily. MBA spelt success and huge salaries back in that time.
The main reason for the fall in demand is the outdated curriculum. A student who attains his MBA degree is not exposed to new developments in the management field and hence cannot take a company forward. Only 7% of MBA students from Indian business schools got jobs immediately. Quality should be maintained especially in the field of management development studies.
The forces that are shaping the world need to be brought into the classrooms, instead of just understanding of Trade Unions and Labour Laws. Curriculum needs to be planned and created by professors and practitioners so that the value of education is not just book but also of practical knowledge.
The Indian Institute of Management in Ahmedabad (IIMA) is doing things differently. It is a the only EQUIS accredited business school in India. It exposes students to courses such as the Social and Cultural Environment of Business, Good governance and Social Entrepreneurship.
Add to this, the job crisis with beyond low paying jobs for MBAs. The rising job crisis is more about the future of India. This is a prime reason why talent seeks employment in other countries, and this will face a problem when India runs out of skilled individuals who can take the country forward.
Overall MBA needs to change as a whole by taking into consideration examples like IIMA and using more practical and updated curriculums.