New Delhi : In sync with the demonetisation, lacklustre business sentiment and stalling of new projects have led to drying of job opportunities for b-category business schools which are struggling hard for placement so far with only 20% of students landing with employment offers, making this placement year the most challenging in recent years, reveals the ASSOCHAM recent paper.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) recent paper reveals that grim placement scenario is reflected in b-school campus hiring this year which has gone down severely than last year which was 30%. The salary packages which are offered at b-schools and engineering colleges are also being curtailed by 40-45% as compared to last year.
ASSOCHAM Education Council (AEC) says that many parents and students are re-thinking on investing three-four years and several lakhs in a course. Around more than 400 institutions have become defunct as they are not getting enough students to be viable.
As per the findings, a large number of the B-schools and engineering colleges are not able to attract students. More than 250 b-schools have already closed down since 2015 in the major cities Delhi-NCR, Mumbai, Bangalore, Ahmedabad, Kolkata, Lucknow, Dehradun etc. Another 99 are struggling for their survivals, reveals the ASSOCHAM report.
The biggest reason for the gap is the rapid mushrooming of tier-2 and tier-3 management education institutes that have unfortunately not been matched by commensurate uplift in the quality of management education. Most of the students prefer to choose cheaper AICTE approved programs rather than B-schools,” adds the paper.
The root cause of the problem is that institutes only focus on filling up seats and do not consider the quality of students at the time of intake. Consequently, students think that the entire responsibility lies with the institute. On the other hand, the institutes will have to improve the infrastructure, train the faculty, work on industry linkages and spend money on research and knowledge and focus more on making students employable rather than employed.
The paper also stressed that nowadays students are not concerned about the quality of education in an institute, they only want to know the placement and salary statistics and discounts offered on the fee structure and this has spoiled the entire education system.
ASSOCHAM has advised to improve the infrastructure, train their faculty, work on industry linkages, and spend money on research and knowledge creation and making students employable rather than employed.