MHRD's New Move of Scrapping One Year PG Programmes Stir a Thought Among IIMs

The government's move to stop offering one-year post-graduate programs at Indian Institutes of Management (IIMs) may spiral into a turmoil between the two, with the first B-schools joining together to retain their autonomy.

The IIMs are planning to meet with officials of the Ministry of Human Resources Development (MHRD) and present friendly options. For example, options are being considered, such as either going back to offering one-year post-graduate programs as diplomas instead of an MBA degree or adding an additional research component after one-year completion. The outcome depends on the kind of dialogue that the IIMs will have with the Ministry, even as they plan to make a joint representation soon.

However, the IIMs are willing to stop offering these programs completely, as recently requested by the MHRD.

On Friday, the Ministry wrote to IIMs that the premier Business Schools (B-Schools) could not offer a one-year postgraduate degree, as the University Grants Commission (UGC) rules do not allow such a practice. The advice to the IIMs was based on the opinion given to the MHRD by the Ministry of Law.

One of the directors of the IIM offering such a program, asking for anonymity, said that adhering to the letter of the MHRD would "mean death knell" to their autonomy.

"We are willing to work with the government, but the opinion of the law ministry has made it difficult. There is a fear among IIMs that falling within the purview of UGC, despite having our own Act, would mean submitting to their framework, "said the Director.

IIM-Bangalore Director G Raghuram said the matter needed to be discussed, "especially if the MHRD has granted autonomy to the IIMs through the IIM Act."

"We would like to discuss this with the IIMs first. The IIM Act grants the IIMs degree-granting autonomy for its various programs, "said Raghuram. However, an emailed query to IIM-Ahmedabad did not generate any response.

Offered by some of the older IIMs, such as Ahmedabad, Bangalore, and Calcutta, one-year post-graduate management programs are primarily intended for executives with prior minimum work experience and are aimed at training professionals in their careers. While such programs were offered as a one-year diploma, the promulgation of the IIM Act allowed the Prime B-Schools to have greater autonomy to begin the award of MBA degrees.

Thus, along with their flagship two-year MBAs, Ahmedabad, Bangalore and Calcutta, the IIMs changed the structure of the one-year post-graduate diploma for executives to the one-year MBA programs.

IIM-Calcutta Director Anju Seth said the B-School had every intention of continuing this programme.

"The program is now in its 14th year and was successfully launched online in April 2020. Graduates have deservedly gone on to a very successful career in India and abroad.

We have every intention of further strengthening this powerful program, "Seth said. According to IIM sources, even recruiters are in favour of continuing such one-year programs, given the kind of talent pool they generate for mid-senior and senior leadership positions. Recruiters are therefore willing to support IIMs, even if it means going back to offering these programs as diplomas and not as MBAs.”

The programs are also one of the main sources of primary revenue in terms of fees since they are aimed at executives with considerable work experience and relatively more diverse in terms of internationalization compared to the flagship two-year MBAs.

At IIM-Ahmedabad, an annual fee of approximately Rs 28 lakh is charged to a batch of 140 candidates, while at IIM-Bangalore, Rs 21,5 lakh is charged to a 73-strong batch.

IIMs feel that the MHRD 's argument is that if IIMs take the liberty of offering a one-year MBA, others may follow suit. However, the B-Schools also argue the divergent thinking that has been part of the fabric of each IIM since its inception, apart from other institutions.

"The government needs to understand the design principle behind the fabric of each IIM. Most likely, there will be a representation from all of us asking the government either to leave us alone or to change the conditions. There is definitely a possibility to say add a research component to the program after one year, "said another director of the IIM on the condition of anonymity.

Even as IIM-Calcutta looks at "consulting and deliberating at multiple levels" on the same level, Seth is confident that Premier B-Schools and MHRD will jointly find "the best possible solution."