This is not good news for the boy next door if he is one of those studying in the many management institutes mushrooming across the country.

With economic slowdown affecting corporate expansion drive, a majority of graduates fromtier III and IV B-schools may find it difficult to land a job this year.

“Final placements is going to be a challenge for tier III-and-below schools (of which we are also a part) this year,” said Bikramjit Banerjee, Head of Placements, Usha Martin Academy.

According to Crisil Research, out of approximately 4,000 B-schools in the country, 52 per cent belong to the tier-III and 36 per cent to the tier-IV categories.The study, based on 2010 recruitment data, shows wide disparity between approximately 10 per cent premier institutes and their poorer cousins, in placement patterns (Table below).Nearly 20-40 per cent of lower-rung institutes fail to helps their students find jobs on campus.

According to Crisil, a large percentage of students from such colleges, unless trained extensively, reportedly lack the skill set required to hit the ground running on their jobs.

“The cost of employing a management graduate from the lower rung colleges is usually lower than that for students passing out from top schools. However, the cost attribute might be thrown off gear by the intensive training required to train these students to be on par with those from tier I colleges,” said Dhruv Desai, Senior Vice President, Human Resource and Leadership Academy, Angel Broking.

Faced with these challenges, smaller institutes are working on alternative strategies. Mayfair Business School, for example, claims to have introduced ERP and SAP training modules to equip students with IT knowledge (apart from managerial skills) to help them get job offers. Globsyn, meanwhile, is focusing on summer placement as a tool to improve final placement ratios.

(This article was published on December 2, 2012)
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