READ MOREThis is according to a study by the Associated Chambers of Commerce and Industry of India (Assocham), which represents over 450,000 business entities.
The study says that with the exception of the elite Indian Institutes of Management (IIMs) and the top 20 ranking institutions, most of India’s 5,500 B-schools produce “un-employable” graduates.
And they land up in jobs—if at all—that pay less than Rs10,000 ($150) a month.
“Lack of quality control and infrastructure, low-paying jobs through campus placement and poor faculty are the major reasons for India’s unfolding B-school disaster,” Assocham explained. Outdated curriculum, too, contributes to the problem.
That’s why some of India’s B-schools—both approved and otherwise—are increasingly going out of business.
“Around 220 B-schools shut down in the last two year in cities such as Delhi-NCR, Mumbai, Kolkata, Bangalore, Ahmedabad, Lucknow, Hyderabad, Dehradun, etc. And at least 120 more are expected to wind up in 2016,” the study said.
Out of a recent Harvard Business Review study of the 100 best performing CEOs in the world, only 24 percent had MBAs.
Development Dimensions International (DDI) studied data from its assessments of more than 15,000 leaders across 300 companies and 18 countries.
MBAs rated higher in financial acumen, business savvy, and establishing strategic direction — skills that are commonly emphasized and developed in most MBA programs.
On the other hand, MBAs were lower than undergraduate degree-holders in coaching and developing others, driving for results, and selling a vision.
Thus, while an MBA program can strengthen many important leadership skills, it won't necessarily produce strength in all of the skills leaders need to be successful. ■