CAREER GUIDE |
| EXCELLENT CAREER OPPORTUNITIES IN BUSINESS MANAGEMENT IN INDIA | 
Education must help learners live their lives with greater competence and greater confidence. It will only do this if it is of good quality – where the learning process is positive and helpful, and where real learning takes place. Today’s world is complex and knowledge is growing at a fast pace – learning must go on throughout life.
B-School Students need to know how to cope with change, with many different relationships, with lots of information, and with diversity and difference.
Education and Employment
Education has a wide connotation. There are divergent interpretations on the basis of: Knowledge Skills, Training, Experience, Attitude, etc. It represents an individual’s development and preparation for discharging her duties as a Citizen. Education is a continuous and life-long process. It is a conscious deliberate and planned process designed to modify behavior in a desirable and socially acceptable way to impart specific knowledge and skills.
The Goals of Education
There are several distinct Goals or Aims of Education :
l Individual Goal: to contribute to the development of the Individual, to make him/her self-reliant.
l Social Goals: to provide education for: Citizenship, Social Efficiency and Social Service.
l Knowledge Goal: is related to acquisition of relevant knowledge.
l Moral Goal: is related to character formation.
l Vocational Goal: deals with the preparation of individuals for contributing to economic development and national wealth through productive employment.
The Education Commission (1964-66) stated that Education should be related to the life, needs and aspirations of the people; and that Education should be a powerful instrument of social, economic and cultural transformation necessary for realizing national goals.
According to Educational Psychologists, Education must cause a change in behavior. General and Higher Education should teach: respect to others; tolerance of diversity; to be good responsible citizens of the country; to preserve the environment; to conserve our scarce resources; to speak the truth; to be honest and to practice one’s profession with pride and passion.
A reciprocal relationship exists between education and employment–between educational planning and manpower planning. There ought to be a match between the knowledge and skills required by the different employment sectors; and the structure, content and Teaching-Learning processes provided by the education sectors. Any mismatch results in under-or unemployment, and frustrations and social unrest. It is necessary to provide feedback loops, and bridge the gap between education and employment through occupational training.
In the classical tradition, Education was not only for preparation for employment. In the post – industrial era; formal education is a pre-requisite for employment. Educated and trained manpower is one of the major inputs for economic and social development. The employment sector is where an individual spends most of his adult life. The employment sector consists of different sub-sectors: Agrarian, Manufacturing, Business, Financial, Social and Public Services, etc. An efficient labor market must meet the requirements of both employers and employees. The employment sector must pride both opportunities and incentives to encourage the adaptability of the work force.
The Profession
Business management is today one of the most sought-after careers. For aspirant in the employment market, this has opened limitless opportunities in diverse spheres with the promise of rewards in the form of good remuneration, status and scope for professional and personal growth. Moreover, in this achievement-oriented profession where results count more than year of experience, bright and hard-working young people can rise to top positions fairly quickly.
Areas of work in Business Management Professional managers, depending of individual skill and specilization, usually operate within one of the five defined functional areas. These might vary slightly from organization to organization.
l Personal Management or Human Resourse Development
l Finance
l Production and Operation
l Sales and Marketing
l Management Information Systems (MIS)
There are also some special areas for work in business management, that is a particular type of business management.
l International Management -deals in all areas of inter-national trade and business.
l Public System Management - management of public interprises, non-government organization and cooperatives.
l Operational Research - using mathematical analysis for solving financial and production problems
l Technology Management - specilizes in all aspects of technology, including financing and marking.
l Management Consultancy - responsible for identifying and correcting problems concerned company policies, procedures and methods.
l Hospital Management - responsible for the efficient running of hospitals and health care organizations.
l Hotel Management - concentrates on all aspects of hospitality and hotel administration.
l Rural Management-utilizing management practices for managing agro-based and other village industries as also marketing rural products.
l Forest Management-responsible for handling the administration and marketing of forest-related projects and products for forest development.
l Disaster Management - this comes into action during the times of natural calamities and disasters and is involved with reconstructing and rehabilitating disaster-stricken people and managing relief materials and other resourses.
l Leisure & Event Management - management of leisure-related activities, clubs, parks and events.
Eligibility for Business Management
Graduate studies in business requires a good percentage in standard XII from any subject stream. However, subjects such as commerce, economics and mathematics would prepare a candidate better for business studies. Selection is either on the basis of class XII marks or throught an entrance test.
Postgraduate studies require a undergraduate degree (BA, BSc. or BTech.) in any discipline and clearance of entrance selection processes. A requirement of a minimum of two years of work experience is likely to be introduced for eligibility to most master’s programmes to keep them on par with international management courses.
Duration of Management courses
Undergraduate studies (BBA): 3 years.
Postgraduate course (MBA): 2 years
Part-time course (MBA): 1-3 years.
Growth of Management Education in India during
1994-95 and 2006-07
Year No. of Institute Intake
1994-95 312 26,874
2006-07 1,132 94,704
%Growth 263% 290%
(Table 1)
Region wise Distribution of Management Institutes and Intake (MBA/ PGDM)
Year 2006-07
S. Region No. of % Intake Average
No. Institute age MBA/ Intake Per
PCDM Institute
1 Central Region (M.P., 91 8.04% 7,275 80
Gujarat, Chhatisgarh)
2 Eastern Region (W. 78 6.89% 7,085 91
Bengal, Orissa,
JharKhand,North west)
3 Northern Region (U.P., 137 12.10% 16,170 118
Uttarakhand,Bihar)
4 Northern western Region 183 16.17% 14,095 77
(Delhi, Rajasthan,
Haryana, Punjab, H.P.,
J&K)
5 Southern Region (A.P., 374 33.04% 24,850 66
Tamilnadu, Pondichary)
S. Region No. of % Intake Average
No. Institute age MBA/ Intake Per
PCDM Institute
6 South Western Region 123 10.86% 9,107 74
(Karnataka, Kerala)
7 Western Region 146 12.90% 16,122 110
(Maharastra, Goal,
Daman & Deu)
All India 1,132 100% 94,704 84
(Table 2)
Specilized National Institutions
The IIMs at Ahmedabad, Bangalore, Kolkata, Lucknow, Indore and Kozhikode (Calicut) are autonomous institutions set up by the government of India. They are rated as the premier business schools within the country and are reputed abroad for the calibre of their alumni.
State - wise Position of Management Institutes in India in 2006-07
S.no. State No. of % Age Intake % Age
B-Schools
1 A.P. 222 19.61% 14,945 15.78%
2 Tamilnadu 150 13.25% 9,785 10.33%
3 Maharashtra 144 12.72% 15,912 16.80%
4 U.P. 111 9.80% 14,175 14.96%
5 Karnataka 91 8.04% 6,952 7.34%
6 Rajasthan 62 5.48% 4,230 4.47%
7 M.P. 48 4.24% 3,840 4.05%
8 Punjab 41 3.62% 3,070 3.24%
9 Gujarat 38 3.36% 3,075 3.25%
10 Orissa 37 3.27% 3,178 3.36%
11 Haryana 36 3.18% 2,615 2.76%
12 New Delhi 33 2.91% 3,560 3.76%
13 Kerala 32 2.82% 2,155 2.28%
14 W. Bengal 25 2.21% 2,445 2.58%
15 Uttarakhand 16 1.41% 945 0.99%
16 Bihar 10 0.88% 1,050 1.11%
17 J&K 8 0.71% 440 0.46%
18 Jharkhand 7 0.62% 975 1.03%
19 Assam 6 0.53% 337 0.35%
20 Chhattisgarh 5 0.45% 360 0.38%
21 H.P. 3 0.26% 180 0.19%
22 Goa 2 0.18% 210 0.22%
23 Pondicherry 2 0.18% 120 0.13%
24 Tripura 1 0.09% 60 0.06%
25 Manipuar 1 0.09% 30 0.03%
26 Nagaland 1 0.09 60 0.64%
27 Mizoram Nil Nil 0 0
28 Sikkim Nil Nil 0 0
29 Meghalaya Nil Nil 0 0
30 Arunachal pardesh Nil Nil 0 0
31 Andaman & Nicobar Nil Nil 0 0
32 Chandigarh Nil Nil 0 0
33 Daman&Deu Nil Nil 0 0
Total 1,132 100% 94,704 100%s
(Table-3)
(Source: AICTE: Annual Report/Hand Book Table - 1/2/3)
Comparing the pay package
Professional degree ruled the roost and Bachelors (Prof.) and MBAs were among the best-paid profiles in the lot. In the top managerial levels, Masters’ level qualifications also earned comparable salaries. (See Table bellow)
SALES/ BUSINESS DEVELOPMENT
Qualification Bachelors Bachelors (Prof.) MBA
Sales Executive 2.35 2.51 2.76
Business Dev. Mgt. 7.14 8.57 9.01
Head-sales - 26.55 30.22
MARKETING
Qualification Bachelors Bachelors (Prof.) MBA
Mar Comm. Mgt. 4.36 5.49 6.61
Marketing Mgt. 6.44 8.12 8.79
Chief Mktg. Officer - 29.08 31.87
HUMAN RESOURCE MGMT.
Qualification Bachelors Bachelors (Prof.) MBA
Asst Mgt. 3.26 3.29 3.73
Manager-HR 7.92 8.53 9.88
Head-HR 23.63 27.35 30.26
FINANCE
Bachelors Master(Prof.) MBA
Accountant 2.30 2.74 2.32
Fin. Controller 15.79 18.69 23.63
Chief Fin. Officer - 27.41 33.05
Experience and Type of B-school matter’s
IT employers showed clear preference for employees from Type A education institutes, (MBA) Types A institution include premium B-schools like IITs , IIMs and NITs etc.
The salary premiums are as high as 50 percent in some cases.
An MBA clearly was a qualification sought after for the top managerial positions . Here again , the type of institute played an important in determining salary levels.
IMPORTANCE OF EXPERIENCE
Qualification Bachelors Bachelors Master Master MBA
(Prof.) (Prof.)
0-3 Year 4.09 4.41 4.26 7.48 6.05
3-5 Year 4.96 5.87 5.85 6.07 7.26
5-10 Year 7.74 9.31 8.39 8.63 10.54
10-15 Year 12.21 15.39 13.32 18.78 18.58
15-20 Year 14.27 21.20 18.07 24.70 26.03
(Note. All salary figures in lakhs. Salary figures used in this report are median of salaries in the particular job profiles)
Job Prospects
Fresh management graudates are usually recruited on-campus. Corporate organizations, multinationals, foriegn banks, foreig financial institutions, and others attempt to woo students from the top management schools with lucrative job offers. Most of the major business schools have also initiated career placement schemes for the benefit of graduating candidate. MBA degree holders can join any of the following as executive or assistant managers.
l Banks
l Financial Organizations
l Public Sector Enterprises
l Industrial Houses
l Business Houses
l Export Companies
l Multinational Companies
l Marketing Organizations
Remuneration
Remuneration package for the MBAs are among the higest today, as there is still a predominant shortage of well-trained managers. Starting salary and perquisites vary depending on the size and prestige of the recuiting organization, the candidate’s qualification and the institute of training. they could be as low as Rs. 8,000 per month or as high as Rs. 1,50,000 per month for IIM graduates. An MBA degree with an additional professional qualification, like Chartered Accountancy (CA), Indian Cost and Works Accountancy (ICWA), Company Secretary (CS) or Chartered Finance Analyst (CFA), enhances a candidate’s earning capacity.
Conclusion
With rapid expansion of management education after 1994, the need for maintaining quality of education became imperative. Ministry of Human Resource Development, AICTE and NBA, etc., are the regulatory agencies for deciding bench marking and ensuring quality assurance in management education. At present, Indian B-Schools are of different shades. There are IIMs and other super-league management schools with global standard of quality. On the other hand, there are also business schools which seriously lack quality.
In spite of growth in access, however, with more than 20 crores population in age group of 17 to 25 years, the country needs much higher number of managements schools. Moreover, India has potential to export education but contrary to it, due to lack of access, every year about 1,40,000 students go to foreign countries for higher education, draining out $ 4 billion foreign exchange per year. It shows the need to promote quality management institutions in India rapidly.
The author is Director, Keshav Institute of Management, Asandh-Kohand Road, Distt. Karnal, Haryana (INDIA).
Author:
Prof. (Dr) P.K. Dutta |
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