Friday, May 31, 2013

PSU executives queue up for MBAs

An MBA is no longer a cherished degree for only professionals from the private sector. An increasing number of employees from state-owned undertakings are enrolling for the degree to hone their managerial acumen, gain global exposure and fast track their career, which would have taken much longer in the public sector. In fact for most, it is a passport to move out of public sector undertakings (PSUs) to private corporations or consulting firms.

Top business schools like the Indian Institutes of Management (IIM), Indian School of Business (ISB), SP Jain Institute of Management and Research (SPJIMR), Narsee Monjee Institute of Management Studies (NMIMS University), and IIT Bombay's Shailesh J Mehta School of Management (SJMSOM), have been witnessing significant enrolment from students with work experience in PSUs or the government sector in MBA programmes in recent times.

Public sector professionals, with two to five years of work experience, usually have exposure to large-sized projects and an MBA degree opens up for them a wider array of options in the private sector or allied industries in consulting. IIM Bangalore's flagship post-graduate programme has 38 professionals from the government sector in the class of 2012-14 with a batch size of 377, up from 28 in the class of 2011-13, with a batch size of 382.

"Predominantly, these professionals are coming here to come out of the sector," says professor Sankarshan Basu, chairperson, career development services at the institute. The professionals usually join the government sector from engineering campuses, but in just a few years, get frustrated at the lack of growth opportunities, he explains. "They feel an MBA degree can fetch them more glamorous roles in the corporate world, and a better remuneration," adds Basu.

ISB's Class of 2014 has 33 students from PSUs or government organisations, compared with 20 in Class of 2013 and seven in the Class of 2012. At SPJMIR, the PGP class of 2012-14 has 14 students from PSU sector, compared with 11 in the class of 2011-13. On an average, 7% to 8% of the PGP class over the past three years has comprised professionals from the public sector. At NMIMS, the MBA class of 2012-14 has five students from the PSU sector, compared with four in 2011-13 and two in the previous batch. Prior to this, it was hardly a trend.

"A management degree changes their entire career path. It fast-tracks their career and in the long term, they can contribute much better. It gives them crossfunctional and global exposure and trains them for long-term leadership," says Atish Chattopadhyay, professor of marketing and deputy director of the two-year PGDM programme at SPJIMR.

At IIM Lucknow, the class of 2012-14 has 45 professionals from the government sector in a batch size of 450, up from 40 in the class of 2011-13 with a batch size of 420. Most students attribute the reasons for opting for an MBA to the slow growth opportunities in PSUs, where reaching a manager level could take them more than five to six years. Kranthi Kumar Nukathoti, former assistant design engineer at MECON, is one of them.

Nukathoti cites the lack of growth and low remuneration as factors for pursuing an MBA. He hopes to get into supply chain operations at any of the big private manufacturing majors after completing his MBA. One of the key reasons for professionals from PSUs joining SPJIMR is because of its focused specialisation in operations management, according to Chattopadhyay.

A chunk of the students from PSUs want global exposure, which the institute makes possible through its tie-up with Michigan State University in supply chain management and Purdue University in manufacturing and operations. Institutes like SJMSOM have a significant number of engineering professionals from the core sector and heavy industry PSUs coming for an MBA.

According to VK Menon, senior director, career and admissions at ISB: "An MBA degree gives them agreater choice of options and quick learning. Professionals from PSUs or government who join our MBA course get an opportunity to utilise the skills they have learnt and explore new fields."

It's a win-win situation as these people bring in diversity to the class and a perspective of the government sector to the rest of the students. "The exposure these people get in PSU units is large-scale," says Menon. Adds Varsha Parab, director administration and in-charge registrar at NMIMS: "These students bring in governmental perspective to other students, which is required when they go into the corporate sector."

Moreover, when these professionals join the private sector or consulting firms, they bring with them the skill sets and depth of understanding gained from working on big projects - a gain from the company perspective as well.

Source: The Economic Times, May 31, 2013

No comments:

Post a Comment

Blog Archive