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The basics of a One year MBA in India #4 – Placements light years ahead
17Appeared first in Business Standard, Rediff.com, Indian Management
Top notch salaries reaching a new high are falling into the laps of one-year full time MBA graduates.
Let’s consider the salary statistics for IIM Indore’s one-year full time MBA class of 2011 (EPGP), which requires students to have a minimum five years’ work experience. Cost to company (CTC) figures in the 2011 EPGP and PGP placement reports for IIM Indore tell a compelling story.
The mean domestic salary for the people graduating the one-year full time MBA (EPGP) is Rs 17.75 lakh and for the people graduating the two-year full time programme (PGP) is Rs 14.06 lakh. The complete placement report for EPGP can be read at http://bit.ly/plepgp.
The contrast in salaries is starker at IIM-A, where the minimum work experience required is closer to seven years. An all-time high international salary of Rs 1.35 crore ($300,000) was offered to a one-year full time MBA (PGPX) graduate in 2007 http://bit.ly/plhigh.
The detailed 2011 PGPX (http://bit.ly/plpgpx) & PGP (http://bit.ly/plpgpa) placement report for IIM Ahmedabad shows the following CTC figures for graduates of the one-year full time MBA and the two-year PGP:
- One-year full time MBA (PGPX) mean domestic salary – Rs 27,13,974
- Two-year full time programme (PGP) mean domestic salary – Rs 16,36,346
- One-year full time MBA (PGPX) minimum domestic salary – Rs 18,40,000
- Two-year Full Time programme (PGP) minimum domestic salary – Rs 8,00,000
- One-year full time MBA (PGPX) maximum domestic salary – Rs 42,02,997
- Two-year full time programme (PGP) maximum domestic salary – Rs 37,00,000
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In 2011, the average salary received by the one-year batch at IIM C was Rs 19.66 lakh and at IIM B it was Rs 20 lakh. Indian School of Business, which popularized the one-year format, quotes an average CTC of Rs 17,92,000 for its 2011 batch. SP Jain, Mumbai mentions a 15.63 Lakhs average salary for its one-year MBA (PGPM).
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Companies recruiting from the one-year full time MBA include all the prestigious firms that recruit from the two year programme. So for instance at IIM A, companies such as JP Morgan, Goldman Sachs, KPMG, McKinsey & Co., Booz Allen Hamilton, Deloitte, GE, Ernst &Young, Arcelor Mittal, General Motors, HSBC, IBM, Oracle, Microsoft, Unilever, Google, and Ericsson pick up talent from campus.
The placement process of the two courses is, however, different. While the two-year course has a ‘placement week’ and talks about ‘day zero placements’, the one-year course follows a rolling placement model, as is the practice at most international schools. What this means is that recruiters visit the campus throughout the year to pick suitable candidates. This is because the candidates of the one year course are hired for leadership roles, not entry level ones, and this requires a different approach to hiring.
For example, the typical scenario is that a single company may come to a B-school and pick up 20 two-year full time PGDM/PGP students as management trainees and later assign them specific tasks on induction. The hiring from the one-year full time MBA instead will be for candidates with very specific skill sets and for senior slots, such as General Manager & Vice President. For this kind of recruitment, interactions between candidates and recruiters happen over a longer period, with recruiters engaging closely with the candidate they would like to hire.
Placements for both the two year course and the one-year full time MBA are student driven. The institutes provide no more or no less help to the one year candidates than they provide to the two year ones.
However, I would like to add that, at times, one or two candidates from both the two-year course and the one- year course do not get the kind of role they are looking for. In the context of a student of the one-year course, this can happen when a candidate is looking for a drastic career change for example, from IT to finance, after seven-eight years experience in IT. This kind of transition is difficult, not because of any shortcoming in the one-ear course, but because after this quantum of experience in a specific area the recruiter can place the candidate neither at a senior level in a new role nor at a trainee level in a fresh role. A candidate facing such a situation might chose to rejoin his previous employer in a higher role.
Building managerial skills on a base of past experience is the stated goal of an MBA and the one-year full time MBA deliveres well on that promise.
I would advise students to change their approach to judging the worth of an MBA course – from a single-minded focus on placements offered by the course to the ability of the course to transform them into leaders. You would be surprised to know that no international B-school promises placements. This is primarily because their class profile, similar to the class profile of the one-year full time MBA at Indian B-schools, consists of candidates suited to highly specific roles – roles that are sometimes not available. It may come as an eye opener for many that at Harvard, considering data from 2007-2012, on an average, 20 per cent of the MBA class was not placed at the end of the course and 10 per cent was not placed even 3 months after graduation! Does that change the standard of the MBA at Harvard? Not at all!
Click here to read the original article in Business Standard
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Article Name
The basics of a One year MBA in India #4 - Placements light years ahead
Description
Appeared first in Business Standard, Rediff.com, Indian Management. Top notch salaries reaching a new high are falling into the laps of one-year full time MBA graduates. Let’s consider the salary statistics for IIM Indore’s one-year full time MBA class of 2011 (EPGP), which requires students to have a minimum five years’ work experience. Cost to company (CTC) figures in the 2011 EPGP and PGP placement reports for IIM Indore tell a compelling story.
Author
Shikhar Mohan
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One Year MBA
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17 Comments
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Hello Admin,
Is it true that it is the candidates who come from Engineering or IT background who are preferred by the b-school selection process and again are the lucky one’s to bag the highest offers during the placements.
Is there any hope for Commerce or Management Graduate with 5-6 years of quality work experience to get selected in top B-schools in India and get 20 Lakhs + of salary through campus placements.
Thanks
Amit
Hi Amit,
On the contrary, B-schools running one-year MBA programmes in India, like their global counterparts, look for diversity in their candidate pool – a non-IT profile such as yours will be a advantage. As far as offers go, salaries for roles in Consulting, Marketing are pretty much on par with those offered for IT profiles at Indian schools.
Hope for a person with good experience in a commerce related line? Of course!
Thanks Admin, that is really motivating 🙂
Hi Admin,
Just to be sure, does this post ring true even today in 2015? What has changed and what hasn’t? I am currently working with an IT Solutions company and plan on doing my MBA 2 years down the line. That would give me about three years of work experience. Would you be able to shed some light on what kind of career roles I can expect to switch to after I finish my 1 year executive MBA?
Hi Vyshak,
Are you looking at doing a 1 Year Executive MBA (this is a part time course for people employed as executives) or a 1 Year Full Time regular MBA (this is a MBA which recruits only experienced professionals) like 1 year/ 2 year MBAs in USA/ UK.
Hello admin,
First of all, thanks for providing us useful information.I am an IT professional, Need to ask that do your previous work-ex matters during placements in 1 year mba. (I mean Technology you worked upon). Also is there any managerial experience required before persuing I year mba.
I have heard that to move to a diffrent domain say finance from civil site engineering is extremely difficult & if you move you have to start at entry level (i think i would be earning the same or less from my current CTC of Rs 10 lac p.a.). Kindly clarify. Majority of candidates in one year MBA have IT experience. For candidates with civil site engineering background, i don’t think many companies will be coming for campus recruitment. I think it is not worth to invest so much in one year MBAs if you have to search jobs on your own considering many biggies don’t recognise one year MBA. Kindly shed some light on placement scenario for civil site engineering in one year MBAs of IIM-A,B,C,L,I, ISB, SP Jain & XLRI.
Hi Kashif, yes that is the nature of MBA education. MBA education globally typically enables transitions within allied areas of your domain or helps you rise higher within the same domain. As opposed to PGP/ PGDM courses in India which help you start up in a chosen field and are structured as MIM courses. That said, as Alok shared with you on the Forum, civil engineering firms do seem to be recruiting from the One Year MBA – shapoorji pallonji is a regular feature at some of the IIMs and real estate majors such as Brigade hire at ISB. We are not aware of companies who don’t recognize the one year MBA in India – do share so we can pursue the story!
Firstly, thanks for your prompt reply. I have come across the information that biggies like Tata Motors & HLL don’t recognise one year MBA from comments in different forums like yours. They say that one year course is not elaborate. Kindly investigate & do the needful to make the whole of India Inc. aware that these one year MBAs are infact the only MBAs in India recognised globally. Also, there are many colleges offering one year MBAs where there is poor placement. Students have to search on their own & often have to join at the same CTC & same profile which they left. Kindly caution the public looking for these colleges.
Hi Kashif, we haven’t come across a company not recognizing a one-year MBA – it could however be entirely possible that a certain company doesn’t currently hire from a one year MBA because it has historically been hiring at the entry level only from two-year PGP/ PGDM courses (classified as MIM courses, these were the only courses around for over 40 years in India) and its set in this hiring pattern.
Many companies who hired in 1970’s-80’s felt that the fresh talent emanating from Indian B-Schools was not ready to dive into management problems given their lack of real world experience and evolved extensive Management Trainee programmes to train and reshape the talent to bring them up to speed. Now despite MBA talent (candidate’s must have work ex to be awarded MBA as per global norms) now available in India, some large companies are still stuck in their old system of hiring and training – these companies are like very large ships and changing course takes time! Some FMCG companies are from this group of recruiters and are notorious for picking talent only at the entry level. This is their choice – other companies want MBA talent and hire accordingly from the one-year courses.
These things are to be expected in the transition phase – the pace of change in Asian societies has always been slower as compared to west and we take our own time to adapt to best practices often convinced that we know best simply because that is the only way we have ever known!
Hello Admin,
I read this article and i must say its quite great.
I have a specific case of mine. I am a mechanical engineer graduated in 2006, having a total work experience of more than 7 years in maintenance (power and gas industry). I have worked with Reliance industries for 3 years and presently am working with Siemens Ltd as a Manager.
I want to pursue executive MBA but still I am in a dilemma as to which field should I opt for.
Kindly suggest me. Also advise me about the college too.
Waiting for your reply.
Tanay
Hi tanay, We hope this is not another case of asking who is sita after reading ramayan? 🙂 Your query is about part time courses and not full time regular one-year MBAs right?
Hello Admin,
I am a bscit graduate with 4 years of exp as an Software Engineer and want to pursue MBA in the perspective of getting a higher position and good salary , please suggest me should I go for a 2 years full time MBA or 1 year full time MBA(which requires min 5 yrs exp) ? , which stream to be selected for 1 year full time MBA (fin, operations, general, hr) as my area of interest is hr n finance ?, which colleges in India offers 1 yr full time MBA ?
Your advice on this will be much appreciated
Thanks,
Shreekumar
Hii admin,
I m a mechanical engineer 2011 passed worked in multiple sectors since then… 1yr GET intern in ASU O&M, 9months industrial sales, 1yr 7months as a field Engineer materials department at tractor company and currently working in Saudi Arabia since 3 yrs in water treatment O&M… What is the scope and hope for the betterment of my career after one year full time executive MBA…
I would be thankful to u if u plz enlighten.
Hi,
What are the average package placements for IIM Lucknow IPMX program.
The school does not publish placement data however as per students the range is similar as at other IIMs – 18-20 Lakh Avg placement salary.