Friday, March 23, 2012
Leaders selling insurance policies!
Have you seen factory of making leaders? I have seen the board of one management institute on Mumbai –Pune highway. In Pune, there are lots of so-called management institutes who claim that they make leaders for industries. These institute offers post graduate management courses to students who have lot of money and their fathers don’t know what to do with that money. Surprisingly, there are few institutes which do not pay the salaries of their employees on time. There are few institutes who are run by the people who don’t know what management means. Still most of these institutes manage their (paid) ranking published by some magazines and economics periodicals. These periodicals carry survey for the ranking. Institutes pay for the advertorials (paid advertisements published in a format of articles) and they get the space in rankings. Top institutes never participate in such surveys because they don’t need such acknowledgement.
And these institutes claim that they make leaders for the industries. In spite of providing such ready-made leaders to the industries, industries do not benefit much from these leaders. These leaders either sell banking products like credit cards or insurance policies or perform the job of clerk in industry. They either change the job or forced to change the job within a year.
During 2007-2009, you must have seen lot of retail and banking companies hiring candidates from these institutes. Normally the hiring was on the payroll of DSAs or contractors of these companies. I was working with Media Company and we used to hire candidates for sales, either selling advertisement (for advertisement department) or products (Circulations or selling of the product). We used to receive the resumes of candidate who were working with banking and insurance sector from all above institutes. They would tell us the reason of high pressure and undignified jobs. How the Leader can sell the insurance policy or sell the banking product to the customer?
During this period I also came to know the bitter truth of such institutes and malpractices in which they involve. Every institute claims 100% placement, but if somebody conducts the survey on “what happens to these students after six months”, I bet you will find surprising results.
This specific business management education system has spoiled the talent market. This also resulted in increased employee turnover because of mismatch of expectations. It is very unlikely that after such education student would get the managerial role. I have seen most of such student doing clerical jobs. For the jobs which can be handled by simple graduate, companies started hiring MBAs (PGs in from above institutes). Students perceive that they would manage people or would be manager within a year. (Fancy titles conditioned their mindJ)
Frankly speaking you need smart employees and not necessary these institutes teach smartness. Second myth is about leadership. If you hired all the leaders (!) to do day to job, failure is likely.
Thank god, most of the organizations are realizing the fact. Almost 35,000 seats in so called business schools are vacant this year and there is less demand for business management courses. This is because; industries corrected their stand on hiring such talents.
Time has come to scrap the existing business management education system and revamp the whole as per the industry expectations.