Placement is not one of the reasons why bright young kids make a beeline for B-schools, it is the only reason. B-schools usually take pride in their placement records and prominently display their list of traditional recruiters as medals of honour. Unfortunately, jobs this year did a classic Houdini disappearing act and left nothing for the colleges to pin on their chest. Yes, some B-schools are finding the truth to be too naked, and so are dressing it up, but irrespective of the official positions, the actual placements percentage varied from 50 per cent to 90 per cent.Recruitment freeze: For once it was not supposed to be a great time to get a job. Companies have cut back on their recruitment. With the business confidence an all -time low and the economic situation not expected to improve until a stable government comes to power, many firms froze their recruitment plans. Sector-wise business confidence was at nadir especially in consumer durables, capital goods and services. Arvind Mills, Maruti UdyogLimited were conspicuously absent from the placement jamborees. Head offices of many trading firms advised their Indian operations not to add manpower until situation improved in East Asia. Companies, who did cut down on the number of campuses they were visiting, gave the boot to the bottom half while maintaining their commitment to the premiere B-schools. Even they then made limited offers to the best.
Company downsizing: The job market has gone bust. Companies who were laying of employees were typically reluctant to recruit at entry level. A number of foreign banks, NBFC and finance firms were missing in action. The Peregrine, Nat West cases are well-known. The finance stream has already been discounted because of the trends and hence the number of students opting for finance was at an all-time low. Marketing regained its prominent position followed by systems and operation management.
Increase in Supply: In the first five years of liberalisation, there was a complete mismatch of demand and supply ofmanagers, forcing companies to cite a lack of skilled, trained workers as a potential barrier to growth. This resulted in most institutes doubling their intake. For example Indian Institute of Foreign Trade jumped the batch size to 120 from 40, the graduating batch of IIM (Calcutta) is all at all time high of 300, Management Development Institute up to 120 from 60. Along with two new IIMs and IITs starting their Management Programme, new B-schools have mushroomed in every nook and corner.
In this buyers' market, nobody believed that by coming out with snazzy placement brochures, making a few presentations and organising national seminars will be enough to lure companies, hence strategically placed articles, new recruitment techniques and success stories of alumni were much publicised in the run up to placements. Even the IIMs were forced to innovate. Number of days for placements have been doubled, the placement week being reincarnated as placement fortnight or month.
Lacking the right skill: Companieswhile recruiting do frequent profile matching. Not many B-schools can boast of completely up-to-date, future oriented curriculum. Companies complained bitterly of not getting the right candidate and leaving the campus without picking anyone.
High recruitment charges to campus: Many schools completely failed to read the markets and continued with high campus entry charges. For many companies whose balance sheet were swathed with red this provided a diplomatic way to convey their inability to participate in the placement program. Some B-schools did capitulate and had cover charges with recruit-all-you-can for a given amount, others hired rooms and conducted a parallel placement, which was toll free.
The predicament of students left without jobs is pathetic indeed. Streets are littered with resumes of the about to graduate BAs in search of a job, any job. Though they are cagey when speaking about unemployment, under-employment is clearly the foregone conclusion. Many are shocked to find so many doors closedThe handful of firms that still have vacancies are dictating the terms completely. Several with work experience are sounding their old organisations, others of starting business of their own, while rest has send out resumes and are still licking stamps.
There is also much pressure both social and peer that many students are finding it difficult to cope. The longer it gets, the more depressing it gets. The situation is nobody's fault, but there are lessons to be learnt from it. Unfortunately for many students tomorrow is just not another day.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
