A prescription for the future
The Indian GDP grew by 8.2 per cent in the last financial year, to consolidate India as the fastest-growing major economy in the world. The expansion of the economy has fuelled a growing demand for skilled management professionals. As a corollary, business schools have experienced a significant growth over the past few decades. This trend is likely to endure as the Indian economy continues on its growth path. However, the journey is fraught with challenges that need to be addressed to ensure that our business schools remain relevant and effective in shaping the future business leaders by preparing the students for the ever-growing complexities of the business world.
Quality of education: One of the most pressing issues for business schools in India is the disparity in the quality of education provided. Historically, MBA, as a programme of study, was evolved to cater to specific business needs of industry. Hence, delivery of a quality programme requires a minimum level of expenditure to support quality faculty, library, laboratory, technology, infrastructure, etc. Interestingly, the fee for MBA programme in India on an average is Rs50,000-40,00,000. This variation has also impacted the delivery quality of this programme. While we are taking a pride for producing the largest number of MBAs, it is essential to analyse the impact of low-quality education on employability of the individual students, their usability in the industry and also on the economy as a whole. Certificate-centric degree definitely diminishes its value. Therefore, it requires a shift to competency-based education.
To enhance the quality of education, B-Schools should adopt a competency-based curriculum that emphasises practical skills and real-world applications. Collaborating with industry professionals to design courses can bridge the gap between academic theory and business practice. Additionally, investing in faculty development programmes and hiring experienced industry practitioners as adjunct professors, professor-of-practice, etc, can enrich the learning environment.
Industry-academia collaboration: There does exist a significant disconnect between academia and the business world in India. Many business schools operate in isolation, leading to a lack of understanding of current industry needs. This misalignment results in graduates who may not possess the skills required by employers.
Business schools should foster partnerships with different industries to create internship programmes, guest lectures, and collaborative projects. Establishing advisory boards comprising industry leaders can help institutions stay updated on market trends and evolving skill requirements. Similarly, the industry should come forward and show initiative for a close interface with the academia to bridge the gap between theory and practice. This will help the industry to address their problems while helping the students acquire hands-on experience. Further, it will create a healthy industry-academia eco-system.
Emphasis on experiential learning: Many Indian business schools place emphasis on theoretical knowledge, rather than practical application. This focus can lead to graduates who excel in examinations but struggle in real-world situations where critical thinking and problem-solving are essential.
To address this issue, business schools should incorporate experiential learning such as case studies, simulations, and live projects into their curricula. Encouraging students to participate in hackathons, business competitions, and consulting projects can enhance their practical skills
and prepare them for the challenges of the corporate world.
Placement challenges: The rapid growth of business education in India has started creating a supply-demand problem. While there is no dearth in supply of students with MBA degree, many of them lack industry-specific skills and required attitude. The problem gets precipitated by the high projection of the placement packages from some top-tier B-Schools in their advertisements leading to unrealistic salary expectations of the students and the other stakeholders including even the B-Schools. The highest package is normally confined to less than one per cent of the students of a batch; but it raises the expectations of all the students. In reality the majority of the students face challenges in finding positions that match their aspirations.
B-Schools should focus on building strong career services that not only assist students with placements but also provide career counselling and skill development workshops.
Focus on entrepreneurship: While entrepreneurship is a growing trend, many business schools do not adequately prepare the students for starting their own ventures. The fear of failure and lack of practical knowledge can deter potential entrepreneurs. This can be addressed to some extent by business schools creating specialised programmes that focus on entrepreneurship, including mentorship opportunities with successful entrepreneurs, incubators for start-ups, and access to funding resources.