Skip to comments.Study: Less Than 10% of Indian MBA Graduates Are ‘Employable’
Posted on 03/11/2013 7:33:48 PM PDT by Fzob
Indias estimated 3,300 business schools churn out tens of thousands of management graduates each year. But only a small fraction of them are employable, or possess basic skills necessary to work in sectors ranging from marketing to finance, according to an unpublished study. B-School graduates are finding out the hard way. Hitesh Kumar, who completed his MBA from a business school in Allahabad, in the state of Uttar Pradesh, earlier this year, has been unable to find a job as an investment banker. ............... Aspiring Minds based its conclusions on a so-called employability test it conducted on 32,000 MBA graduates from 220 business schools across India. The test, which quizzed graduates on topics ranging from grammar to quantitative analysis, found that only 10% of those tested had skills that recruiters typically look for while hiring management graduates. The study found that less than half of the students tested had some knowledge of key industry terms and concepts in their areas of specialty. For instance, a third of the surveyed students who had majored in finance, did not know what IPO short for initial public offering stood for.
(Excerpt) Read more at blogs.wsj.com ...
Or at least, that's the education they often mentioned to me.
I’m sick of the idea that only foreign grad’s are worthy of a job in this country. If anything, this merely reinforces my view that college is big business.
Too bad it is not in the same in America. There’s nothing like a bunch of foreigners that can’t speak American (not English) who have no idea what it is to be American and think their valuable MS, MBA, PhD’s make them more qualified than people who have real experience in America instead of something that came out of a book.
“For instance, a third of the surveyed students who had majored in finance, did not know what IPO short for initial public offering stood for”
Last summer, we interviewed dozens of these Ivy-League B School’ dimwits for a simple financial analyst position. Our simple question of “kindly explain a profit margin ratio..” turned to: “I think profit is about greed”. “umm, profit ratio is about the ratio to make a profit”, to “this company should share it’s profits with the poor”. Yes, they were all B school grads from every known Ivy League uni you could think of.
Our headhunter was apologizing in bunches after the first 3 weeks..
Makes me wonder about the quality of medical education in India.
I constantly get calls and emails from Indian recruiters. They have cornered the market in my software and are placing new graduates like this for 1/3 of what the market should be. And now I see the recruiters are minority owned businesses. Why should these people get more support from the government than American citizens
You have a point, but if I had my druthers, I would prefer Indians to Somalis or Pakistanis or Chinese or Mexicans. At least Indians (at least according to polls in India during the Bush years) like the US. Indians I have known seem to have what I call a “middle-class” attitude- work and family and being good citizens. Not so the other groups I mentioned, from my own limited experience living in a neighborhood in which English is often a second language.
Thank God for all of you! Seriously!
The problem isn't that they think they are more qualified, it's that American companies think they are more qualified!
I've been displaced by Indian H1Bs on several occasions. Despite this, I still like them. They 'get' entrepreneurship, they are hard working, decent and have a certain attitude and sense of humor that serves them well.
Silicon Valley would be a far different and poorer place without them and the Vietnamese.
OK, you nailed it. BTW, my wife is on the phone with a bunch gooks in China that are taking over a business unit from an American company. She has been working normal business hours plus dealing with China and the Philippines every night. There is no way, these people have what it takes to innovate or even deliver the same quality of service to customers in the US.
I wasn’t singling out Indians to criticize, just the idea that get better value from foreigners with degrees than our own people. I constantly hear businesses complaining about the quality of graduates, but never hear business saying what they want from them. Do they want lower expectations in terms of salary? For them to speak a second language? Perhaps we could get a better match if business laid down their requirements.
“You have a point, but if I had my druthers, I would prefer Indians to Somalis or Pakistanis or Chinese or Mexicans. At least Indians (at least according to polls in India during the Bush years) like the US. Indians I have known seem to have what I call a middle-class attitude- work and family and being good citizens.”
You don’t think the Chinese have a “middle class” attitude-work and family and being good citizens?
You have GOT to be kidding.
"Many recent engineering grads in India say that after months of job hunting they are still unemployed and lack the skills necessary to join the workforce. Critics say corruption and low standards are to blame."
The Chinese idea of a fair trade is never leave anything for the other guy.
They suck all the life out of a company, a customer, a supplier and leave an empty husk.
Indians seem to want their customers, suppliers, employees and companies to thrive.
I think it might be important to point out that these are grads from schools in India, not Indiana or any US schools. (It's an article from the WSJ India edition)
I don't know how US B-school students would test out under the same guidelines, but given today's' US education standards, probably only marginally better.
But I do have some experience in working with Indians who have engineering degrees, and I'd say it was a positive experience on the whole with some super-stars involved in the mix and a few duds.
I'd suggest that the way their economy has been growing in India in recent years, and with a burgeoning middle class sending their kids to college instead of the rice patties, the education system has likely been overloaded.
Any enterprise, even a university, can only grow so fast and maintain quality. As the article said, they have several hundred thousand now going to college just for business degrees. Millions going to college overall.
It would be no surprise to me if the university systems there have expanded faster than their ability to deliver a quality education.
Rapid growth in demand quickly exposes weaknesses and flaws. That's in Business 101 as I learned it years ago. Growth brings new problems. Rapid growth brings big-big problems. ;~))
Where my kids go to college, you’d be REALLY HARD PRESSED to see any American kids in challenging technical fields - they’re all foreigners (or at least kids of foreign-born parents).
American parents are FAR TOO BUSY trying to make sure that their kids get that starting gig on the football team and FAR TOO STUPID to realize that today’s schools are out to fail their kids, BY DESIGN.
Have a look...if you can take it:
The problem is really two-fold: On the one hand, many if not most Indian B-schools really don’t teach; they lecture. The students are rarely required to do anything other than rote memorization so they can correctly respond to the answers on the examinations. Unfortunately, being able to function in business requires being able to think creatively, and they just aren’t taught that except at a very few high-end schools. There are lots more B-schools in India than elsewhere, but the number of good ones is really no higher than anywhere else.
The second problem is cultural. Indians as a whole lack the ability to do future planning. Project planners are rare in India, and most things that would normally require extensive planning, such as construction or IT projects, are instead approached with an attitude of “just winging it”. This attitude extends into practically every aspect of life, and no doubt affects B-school graduates just as deeply. As a result, budgeting, forecasting, business strategy and many other critical tools in a manager’s arsenal are missing from Indian B-school graduates. And lest anyone think I’m being racist, or stereotyping, I live in India, and am merely relaying what several Indians themselves have told me.
Not news to an EE who has worked in silicon valley.....so many of those ‘trained’ engineers couldn’t design their way out of a paper bag....but they were always quick to take the credit for someone else’s work
I read that 70% of them voted for Obama...what a disapointment to me.
I worked for a major Fortune 50 company that fell in love with the idea of hiring Indians to do all kinds of work otherwise done in “high cost countries”, i.e. the US. Their reasoning was that IIT has been turning out gazillions of these brilliant people for decades but there were not jobs, the speak English (not necessarily GOOD English) and work for peanuts.
Unfortunately they didn’t know crap. The lack of life experience, western socialization, and overabundance of theory and “book larnin’” made the vast majority of them worse than useless. By that I mean they would consume time and resources composing reports and research to tell you things you already knew and much of which was plagarized from internet sources (like we don’t get the internet here?). That’s the worthless part. But then they’d engage in lengthy dialog and argument to convince you it was true and accurate and “why are you not accepting and worshiping my opinion on this matter?”
If anything, the US citizen is more likely to be competent, just that the freedom that they have makes them appear to be too expensive.
The study found that less than half of the students tested had some knowledge of key industry terms and concepts in their areas of specialty. For instance, a third of the surveyed students who had majored in finance, did not know what IPO short for initial public offering stood for.
Then we have:
Some industry experts say that these findings are evidence that Indias MBA curriculum is flawed because of its emphasis on rote learning rather than on hands-on experience.
Now I ask you, how do you find out what IPO stands for?
... from doing crossword puzzles, that's how! I guess that's "hands on experience," eh?
I guess little facts of life for financing business like EBITDA or DSCR or LTV were not for mere MBAs but maybe they were gonna cover that in Phd program?
Lol...banks would laugh at me if i didn’t know this stuff
And I’m a mere poli sci major from sometime last mid century
I constantly hear businesses complaining about the quality of graduates, but never hear business saying what they want from them. Do they want lower expectations in terms of salary? For them to speak a second language? Perhaps we could get a better match if business laid down their requirements.
Agree! I sometimes had to interview new Harvard grads (and others from Stanford and various Ivy League schools) because our HR idiots required that we do so.
The positions available were for entry level professional slots and EVERY one of such applicants had indicated on their applications that they expected a salary that was greater than our Supervisors who had many years of experience in our field.
One of the major problems in US businesses (particularly in the Defense Industry) is the Human Resources dept., where they try to force hiring certain “types of people” to drive the demographics data.
I’m surrounded by them. Can’t stand them. Nobody can stand them. Seriously it takes 2 of them to equal one of us.
The Indian system is very interesting. Everybody who wants to go to school goes. Everybody graduates, even if they don’t study and do poorly in class.
However, the education, for those who are capable, is superior. No dilution.
The result is that grades and class rank, especially, are accurate and very important in assessing a candidate. A doctor from an Indian medical school could be terrible, but the valedictorian from Lady Hardinge is probably better than any Harvard graduate.
“That’s a result of distorted labor markets - where no reward is seen for completing such a degree - courtesy of various guest worker programs (e.g. H1-b/L-1).”
There’s still plenty of reward in most of engineering and in medical (at least until Obamacare takes over) - believe me, at least here in Texas the jobs are available for Americans. The people my kids graduated with had offers waiting.
But still, most American males in their early 20s (at least the kids of the people that I work with) are either wallowing away at home, trying to decide what to do for a living, or off to college to pursue a USELESS liberal arts degree. And with those degrees, outsourcing is not a problem, because there aren’t any jobs to outsource. And one of my coworkers, believe it or not, has a kid in a lower tier law school. Once the $120,000 of debt is fully realized, she’ll see that would have had a better shot in life by buying lottery tickets (look up Law School Scam on Google, and you’ll see what I mean).
In other words (American) people are seeing rewards where there aren’t any, and not seeing rewards where they do exist. ...and I guess the elimination of teaching math properly to Americans has also done its job.
My guess is that this is a case of readjusting one's worldview. In practice, most people elevate career and schooling above religion.
There, I said it. < /Mark Levin voice>
Belief in schooling is religious dogma that is not easily changed.
Woooowwww... I'm as big a critic of schooling as you'll find, and I'm shocked.
My homeschooled daughter just finished up an introductory course in accounting, and she could have answered that question. AAMOF, we were just talking about profit margin ratios the other night.
Yes, and the major at the time for many of those PhD’s was economics.
I wouldn’t consider umm, profit ratio is about the ratio to make a profit to be a very good answer either.
We get Indian students into our MS program in Computer Science. Only a small fraction of them are competent too.
This is why I never quake in my boots when I hear about how many STEM graduates country XXX produces vs. us. Whatever the failings of our educational system, our graduates are much better than the Third World competition.
Your company probably reflects why most Ivy grads going into business head towards finance or consulting.
That’s very interesting. But I’ve seen transcripts of Indian students. Some do actually fail classes—not everyone passes. So not sure I totally buy into your thesis.
But...... as clerks, they keep the wheels of commerce turning across the water at banks and trading companies in Dubai and Dammam
I see, Max, that you work in Hollywood. I’d actually imagine for the vast number of people interviewing them there, a good liberal non sequitur is the right response for hiring.
Ivy Leaguers are good at playing the game!
Indians get favorable treatment for SBA loans. Minority status got so many of their motels and restaurants funded....got them off the ground
Also all and any refugee gets favorable SBA loans
The only thing worse is Americans who are too lazy to learn the requisite skills and who depend upon [foreign] others to do simple things like, oh, write SQL statements that don't take several hours to run.
>>Indians get favorable treatment for SBA loans.
The SBA also considers them to be “Caucasian”.
I used to have an associate who thought it was pretty funny that he was black as coal, and Indian... and per the SBA — Caucasian.
W was right. The SBA, and the parasites in the jackwagon with them, should’ve been shyte-canned.
Indians are better than Chinese. Chinese are worse with English and cheating is not considered a vice in the academic pursuit.
My son took the SAT last weekend and two Chinese students in front of him were cheating.
Blood is thicker than water. Chinese vote for what’s best for the race. Which means they vote for what’s best for China, not the US.
The whole “diversity” industry is sick. Candidates should be hired on the basis of merit, period.
Following his graduation from Williams College in Massachusettes (12th in his class), my nephew applied to U of M med school but they had to turn him down for that fall due to these foreigners with their degrees taking up most of the vacancies. They did however promise him that they would accept him the following year.
So he took the year off and went to Europe to play semi-pro hockey...........then came home and went on to U of M where he graduated.
Some of those acronyms you used are actually non-GAAP metrics and are not likely to be used in other countries. I know for fact those, are not in used in Indian financing companies. They have their own set of accounting metrics and acronyms.
I recall a few years ago reading an article about campus riots in India after some universities decided to not allow cheating. Why anyone would hire someone with a degree from an Indian University is a mystery. I'm sure there are very talented people getting a good education, but how could you be sure?
I am not sure any company hires Indians by just looking at their Indian degrees. Which is why you have “interviews”. You can only get so far with a fake degree, however that will not help you get past a technical interview.