If IIMs are allowed to grant degrees instead of diplomas, then the newer IIMs, some of which are ranked lower than private institutions, will have an edge over the latter
As businesses across the globe eye the Indian market and the Government of India endeavor to not only make India a manufacturing hub but also to make the country’s economic growth more inclusive, the demand for professional managers will increase many folds. This will make making management education more important than ever before. It is in this context that The Indian Institute of Management Bill, 2015, that has been listed for consideration by Parliament in this session must be viewed.
The Bill has already sparked a debate, which is being led by three major players in management education in India — the old and reputed IIMs (IIM-Ahmedabad, IIM-Bangalore and IIM-Calcutta), the new IIMs (such as the ones in Rohtak, Ranchi and Kashipur) and private institutes. The Bill proposes that the IIMs will be allowed to grant degrees instead of diplomas. As a result, the Post Graduate Diploma in Management will become a Masters in Business Administration and the fellowship programme will become a PhD.
The new IIMs appreciate this proposal as they feel that granting degrees will help them build their brand and make their courses more attractive. But the established IIMs oppose this move. They argue that they already have an excellent reputation due to high standards of education and its irrelevant whether they grant a degree or diploma.
The private management institutes are opposing the Bill since they are the worst hit. Allowing all IIMs to grant degrees may have an adverse effect on their popularity as they will not be able to grant degrees themselves. This may even put their existence in jeopardy.
Some private institutes like FORE School of Management (to which the author is affiliated), International Management Institute, Management Development Institute, SP Jain Institute of Management and Research, Narsee Monjee Institute of Management Studies and Symbiosis Institute of Business Management rank above some of the new IIMs.
These private institutes have quality infrastructure, admirable course curriculum and faculty, affordable fee structure and location, along and outstanding track record and remarkable placements. With the new IIMs being able to grant MBA degrees instead of diplomas, it is probable that students will make their preferences based on the nature of certification rather than institute rankings. The courses run by private institutes will lose their sheen once all the IIMs begin to award degrees.
The argument put forth by the old IIMs(Ahmedabad, Bangalore and Calcutta) is also untenable: If a universal policy is being framed for management education then all institutions, irrespective of their market standing and brand, ought to be put under the same umbrella. However, this will change the game in favour of the new IIMs against the private institutes which are offering quality management education by jeopardizing the latter’s diploma programmes.
Allowing IIMs to grant degrees will compromise the position private institutions. There must be a level-playing field for everyone. The Government should draft a Management Education Bill rather than an ‘IIM Bill' to cover all management institutes — be the Government-run, autonomous or private-owned.
(The writer is a professor at FORE School of Management)