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Only 21% Indian MBA grads employable

New Delhi, Aug 8 (): In the last five years MBA seats had increased four fold but employability of these graduates in India has declined to 21% from 25 % in the past five years, a study has said.

According to the study by MBAUniverse.com–MeriTrac employability study 2012, which quizzed 2,264 MBAs from 29 cities and 100 B-Schools, beyond the Top 25 came up with startling results which show only 21 per cent are employable.

The previous 2007 study by MeriTrac had placed employability index at 25 per cent. Ironically the number of MBA seats in Indian colleges has grown from 94,704 in 2006-07 to 3,52,571 in 2011-12 almost four fold — from resulting in a 30 % five-year compounded annual growth rate, but their employability index have fallen, the study said.

Verbal ability, quantitative ability and reasoning by using internationally standardised tests on behalf of recruiting companies were the parameters. Overall average percentage score obtained by MBAs are as follows :in verbal ability(52.58%), quantitative ability(41,17%) and reasoning was 52.58 per cent.

The study noted that MBA students’ performance on verbal ability seems to be satisfactory, reasoning is an area where they were found lagging and that there is scope for improvement. The study pointed out that in a managerial position the elements of reasoning are crucial to making sound management decisions, this is a result which could put off HR and B schools and which needs to be given closer attention.

Chairman Amit Agnihotri of MBA Universe.com said doubts are raised about the talent coming out of MBA colleges, and whether they are trained to create a workforce responsive to the understanding of business and on-the-feet thinking that are the needs of the Indian economy. In this situation, decision-making skills are being valued more than ever he added.

This report clearly shows that the B-schools have to address the employability gaps across various competencies and the need for scientific examinations and tests to make the candidate skills to employability metrics.