Sunday, June 3, 2012

One Lakh Management Seats Will Go Empty, 65 B schools May Shut Down

Management studies MBA as an option of higher education is on a downside. Business Standard has reported that around 1,00,000 seats may be left vacant this year in management colleges

“There are apprehensions that nearly 1,00,00 seats will go vacant this year. In tier-2 and tier-3 B-schools, the vacancy is nearly 50 per cent. In Uttar Pradesh alone, for 24,000 seats, only 12,000 students have appeared for the entrance examination. The situation is quite grim,” H Chaturvedi, director, Birla Institute of Management and Technology, Noida, told Business Standard.

There is  a general decline in management education as a choice of career in this gloomy unpredictable employment environment around the world. The decline in three preceding years of empty seats in management colleges can be analysed by these declining figures of 15%, 17% and 18% respectively. Around 65 management colleges are on the verge of shutdown.

The reasons for empty seats are:
  • Employment Opportunities: Sectors as Finance and Consulting which are core sectors for MBA have not been doing well after the global meltdown. 
  • Low Salaries: Engineers who are a major chunk of MBA aspirants in India are happy with comparable salaries in IT sector. 
  • Low Industry Participation: The corporate sector are unhappy with B School enthusiasm with connecting to the industry. They want to be included before they can hire students from B schools.  

India has nearly 4,000 B-schools with 3,50,000 seats. However the Tier 1 b schools are having very less seats. The total number of IIMs have increased and this also has impacted the lower end b schools. 

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