Call it a cycle or a circle, but this dip in the number of aspirants enrolling in MBA coaching institutes is bound to hamper the growth trajectory of management education sector in India. Part 1 of this MBAUniverse.com Analysis noted a significant drop (10 per cent to 30 per cent) in student enrolment at top MBA coaching institute. Click MBA coaching institutes see dip in student enrolment to read more. This dip is a strong indication towards the possibility of a lesser numbers or aspirants going for management entrance exams this year. This dip will also, unquestionably, affect the admission processes at the different MBA schools across India in some way or the other.
In the second part of the MBAUniverse.com exclusive series on ‘MBA in crisis?’, we bring to you the thoughts and suggestions of the MBA coaching institute heads regarding the impact of this slide in the admission process of the MBA schools for the next academic year 2010-2012. In the previous article we highlighted that there has been a drastic slide of student enrolments at the MBA coaching institutes in India. When MBAUniverse.com spoke to the heads of the top MBA coaching institutes of India like T.I.M.E, IMS Learning and PT Education, they revealed figures of this year’s student enrolment which clearly shows a slump from that of last year.
THE IMPACT OVER MBA SCHOOLS
According to the heads of the MBA coaching institutes, while the top rung MBA schools are not much likely to face the brunt of the decreasing number, but those MBA schools that are not in the top 50 rank will be in “a deep soup”.
Nishant Priyadarshi, Director, T.I.M.E, Lucknow says, “There will definitely be fewer applicants at the institutes at all levels. This phenomenon will be more visible for institutes below the rank of top 25 to 30 and are charging more than five to six lakh for the whole course.” Priyadarshi says the high study fee is something which the students feel won’t fetch desired returns.
Kamlesh Sajnani, Director of IMS Learning, Mumbai, feels that there will be a dip of 15 to 20 per cent applications next year as is evident from the decreasing number of MBA aspirant enrolments. But he says, “The quality of students will stay the same as the cream of the students' crop will achieve their goals regardless.”
The MBA coaching institute heads feel that the MBA schools should improve a few things first in order to attract more students this year.
IMPROVE THE PRODUCT
For the MBA schools, the first thing which they should put focus on at this time is ‘education & learning’ and not merely placements. There must be improvement in the product first, not the by-product. Kamlesh Sajnani says, “The focus should always be on taking in a good student as an input raw material and then generating a great manager as an output product. The by-product will always follow if the first point is taken seriously, so focus more on educating the candidates in the best possible manner.”
In this context, Sandeep Manundhane, Director, PT Education Indore says the MBA schools should focus on management education and should not be placement driven. “Don't develop placement-ready managers, but industry-ready leaders. Get involved personally in teaching. Work on the ‘delta’ your institute claims in its advertisements.”
RATIONALIZE FEE
The other important point which the MBA coaching institute heads raise is that of increasing fees. Nishant Priyadarshi of T.I.M.E says, “Charge fee that is reasonable and justified as per the inputs given and facilities provided.” Sajnani of IMS Learning seconds him and says, “It will take an extra effort on the part of MBA schools to justify the fees by providing support in tangible areas like faculty, pedagogy, infrastructure and teaching aids. Despite all this, students will expect rationalization at some level on the input costs that they bear while doing the MBA program.”
TRANSPARENCY
Another important fact which the MBA schools should always keep in mind is maintaining transparency. Priyadarshi says, “Be transparent and put all information on the website, regarding the fees, placements, facilities, faculties, and other important details. Most of the low rung institutes give their own PGDM to the students and provide them with a degree under the Distance Learning Program. This, however, is not revealed to the students and they feel cheated at the end.” Sajnani adds, “Websites of institutes should only state facts. Misleading placement statistics will do more harm than good in the long term.”
ALL’S NOT LOST
In spite of the turbulent times, students should not be discouraged to pursue an MBA degree. Priyadarshi motivates students by stating the fact that this is the best time to go for an MBA as by 2012, the worst of recession will be over. “Recessions do not last for more than 18 to 24 months and the worst is already over. So don't look at the present, think three years in the future. It will definitely look bright,” Priyadarshi says and adds, “It might be a bad time to pass out from an MBA school but an excellent time to get into one.”
