Education in India has been through some drastic changes with the massive industrialisation and liberalisation. One of such major change was the explosive rise in demand of MBA programmes. With the industrial expansion of India, organisations needed potential business leaders and managers.
In an attempt to seize the opportunity, students started taking up management programmes to bag lucrative job offers. This further created an opportunity for business schools to spring up and attract students who could not get into the premier b-schools in the country.
Although the demand was still huge, many of these new self-financed business schools failed to get student enrollment after some time. The failure of these institutes raises the frequently asked questions:
- Why new b-schools are not half as successful as IIMs and other older institutions? and,
- What makes a successful b-school?
Professor J. K. Goel, Director, JIMS Rohini, shared his views on the matter and said that it takes a lot of patience to set up an institute and even more so to make it successful. Stating one of the reasons behind the lack of performance that some of the b-schools face, Professor Goel said that institutes expect instant ROIs which usually starts coming after a period of five years.
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It is essential to understand that an AICTE approval, good infrastructure and advertising are not enough to make a b-school successful, Prof. Goel stated. He also added that, institutes failing to get the required student intake succumb to desperate means and spend excess of money on advertisement rather than spending it on hiring skilled faculty.
An expensive advertising budget results in academic compromises and hiring fresh recruits for teaching who charge less. Self-financed private institutions cannot compete with public institutions unless they make effective career advancement schemes, says Prof. Goel. He also said that attracting skilled faculty and retaining them is essential to enhance education quality.
With more than 73% of the management graduates unemployable even after studying at the AICTE-approved institutes, B-schools must realise that skilled resources are needed to prepare students for the job market.
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Talking about the advancement in the business education, Professor Goel said that B-schools can only progress if they attract student on merit rather than enrolling any student who can afford the fees. A structured selection process and experienced faculty are the foundations that B-schools must strengthen in order to flourish.