Auditing for Management Systems

Auditing for management systems

 

ACCORDING to a survey carried out by the International Standards Organisation (ISO) secretariat, India is one of the top 10 countries with over 40,000 companies certified to various ISO standards. The international standards developed by ISO offers Indian companies practical solutions because they represent a reservoir of technological know-how of product,performance,quality, safety and environmental specifications. These standards have the advantage of being backed by an international consensus on the state of the art technologies.

 

   Companies that are committed to corporate social responsibility (CSR) conduct social accountability and environmental compliance audits to validate the transparency, consistency and integrity of their supply chain. The objective of social accountability audits/monitoring (including code of conduct, human rights, ethical, environmental and health requirements) is to ensure that the suppliers and vendors abide with the company's commitment to CSR. Multinational retailers employ secondparty auditors or contract an independent third party agency to conduct these audits. 

GROWTH AREAS    

The Indian economy experienced a GDP growth of 9% during 2005-06 to 9.4% during 2006-07. By 2025, India's economy is projected to be about 60% the size of the US economy. This tremendous growth in the Indian economy will be fuelled by the industrial and the services sector. It is estimated that by 2020, every organisation in India that is exporting products or services will be certified or audited to an international, industry or customer standard. ISO certifications have emerged as an important currency of global trade and instrument of economic growth. International standards, conformity assessment systems and code of conduct audits support in improving efficiency of production and facilitating international trade.

 

 

   The first generation of economic reforms in India in the 1990s was also the harbinger of management systems in Indian industries. Globalisation, liberalisation and privatisation have tremendous implications for management systems. Export-oriented units and MNCs have strived to blend India's competitive edge with management systems tools and techniques.The adoption of a management system is a strategic decision of any organisation. Management systems play a determining role in increasing productivity, providing quality products and services, ensuring customer satisfaction, upgrading technology and skills of employees among others. The design and implementation of an organisation's management system is influenced by varying needs, objectives, products, processes, size and structure of the organisation. 

INDUSTRY OVERVIEW    

Auditing helps to generate immense knowledge, communication and leadership abilities.There are several career options for those who have the right aptitude and skills to be successful auditors. 

   Engineers should attend an International Register of Certified Auditor (IRCA) course for Management System Certification (ISO 9001, 14001, OHSAS 18001, SA 8000, HACCP) conducted in all major cities by certification bodies such as Det Norske Veritas, (DNV), Bureau Veritas Quality International (BVQI) and the British Standards Institute (BSI). Details are available on www.iso.org  and www.irca.org  

   Environmentalists may attend the advanced environmental management system auditing course approved by the Institute of Environmental Management Assessment (IEMA website at www.iema.net ) or IRCA, and may contact some of the above organisations. 

   Energy auditors need to pass the examination conducted by Bureau of Energy Efficiency. For details one can refer to 

www.energymanagertraining.com  

   An auditor is an independent person authorised to evaluate the extent to which audit criteria are fulfilled.

 

   The scope and scale of audits may be different, but some skills and traits are common for all successful auditors: 

    

• The visionary: 

The auditor inspires the auditee with a vision, and by setting benchmarks.The auditor can see the holistic view, the interdependence of various functions in an organisation, and the linkages of various processes. 

   

• The lady/gentleman: 

The audit is a formal assessment of an organisation, and requires dignity in speech and action. Every auditing organisation has a dress code for its auditors. Audit timings should also have formal office hour durations. 

   

• The teacher: 

Experience is important in the auditing profession to command respect from the auditee. Credibility and faith in the judgment of the auditor transforms an auditor-auditee relation to a holistic guru-shishya relationship. Auditors should be convinced that their profession is a noble one, and the purpose is to make a difference. 

   

• The technocrat: 

Auditors possess sound technical knowledge. They are required to be wiser than the auditee, else they may face embarrassment. Auditors should be prepared to face challenges from the auditee on any finding, and should be in a position to defend it with knowledge and illustrations. 

   

• The team player:Auditing is usually considered a lonely profession, much like marathon running. A good audit team can carry out complex audits by tracing the audit trail through a maze of byzantine processes and procedures, documents, records and interviews. 

   

• The people manager: An auditor needs interviewing and reporting skills to make an impact. It requires optimal tact and firmness in communicating to the auditee about the audit findings.The auditor always controls the situation and maintains a sense of humour. 

REMUNERATION 

Audits are important in all professions to determine the extent to which organisational requirements are fulfilled. Audits involve creative interpretation of facts and figures. It needs imagination and initiative to identify and develop audit issues. It is an intellectual pursuit that helps to understand existing realities.

 

   Indian auditors are in demand globally for their technological and communication skills, adaptability, and integrity. Management system professionals can work in international certification bodies and accreditation bodies.Management representatives are the highest paid in the industry and they are responsible to maintain and improve the Certified Management Systems.

 

   Some of the brightest professionals have turned entrepreneurs. Opportunities also exist with multinational retailers for compliance auditors to conduct CSR and code of conduct audits. Auditing is an immensely satisfying profession because it is lucrative, creative and challenging.

 

 

 

Sunil Sharma

   Moderator

Dil Se Desi Group

&

www.dilsedesi.org

Higher Education in 11th 5 year Plan

 IN THE 11 ^TH FIVE YEAR PLAN, THE GOVERNMENT CHALKED OUT AMBITIOUS PLANS FOR THE EDUCATION SECTOR. ONE KEY TARGET IS TO ACHIEVE A GROSS ENROLMENT RATIO OF 15% IN HIGHER EDUCATION BY 2012. BUT CAN THE GOVERNMENT MEET THE TARGET ON ITS OWN OR DOES IT NEED TO WORK IN PARTNERSHIP WITH THE PRIVATE SECTOR

 

   Policymakers have set ambitious targets - to attract 15% of students passing out of class XII (from the current 10%) into higher education by 2012, and 22% by 2017. For achieving this, they believe, the education sector must expand and upgrade on an unprecedented scale. So, the government's expansion agenda outlines the setting-up of 30 new central universities, seven IITs and IIMs, 10 National Institutes of Technology, five research institutes to be called Indian Institutes of Science, Education and Research, 20 IIITs, two schools of architecture and 330 colleges in educationally backward districts. 

   Would these measures, however, help sustain even the current enrolment ratio? According to V N Rajasekharan Pillai, vice-chancellor, Indira Gandhi National Open University (Ignou), "At the present rate of growth in higher education,even the current enrolment is not sustainable. We desperately need to integrate all forms of higher education, supported by massive investment in infrastructure and quality improvement for manifold expansion. And private players have an important role to play." 

   Policymakers, too, agree that private participation would be crucial for the proposed expansion.The Plan paper also states that the government isn't in a position to ensure growth levels of 15-20% in higher education. Private investment will, therefore, be encouraged through tax breaks and other incentives. It has also sought private participation in providing services to existing institutions. 

   Bhalchandra Mungekar, member, Planning Commission, opined: "This Plan is massive in terms of expansion of higher education. And many of the projects would, no doubt, function on a publicprivate-partnership mode." 

PRIVATE FACTOR 

At present, there are 400 universities in the country, up from 240 in 2006. Meanwhile, the number of private universities has risen from seven in 2006 to over 50 at present. The role private players are playing in helping enrolment and accessibility is evident from the fact that of 17,625 colleges in the country in 2006 - 7,650 were unaided colleges and 5,750 were private-aided (private colleges receiving government grants). 

   Besides, at the end of the 10 ^th Plan, of the total 101 deemed universities - 63 were private universities. And of 104 lakh students in higher education, over 67 lakh were enrolled in private institutions. 

   For professional courses in higher education, too, the private sector played a dominant role. The number of engineering colleges rose to 1,478 in 2006 from 669 in 1999-2000. The private share for the same was an estimated 88%. For the same period, pharmacy institutions grew from 204 to 629 and the private sector was responsible for 94% of it. Another sector that witnessed major private participation was management education, where private players enjoyed a share of 64%. 

   In fact, in the period between 2000-2006, the overall share of the private sector in the growth of professional higher education institutions was 78%, while the professional education sector itself witnessed a 167% growth. 

ROAD AHEAD 

Going by the numbers, it is evident that private players have played a crucial role in the growth of higher education in the last decade.But what about the road ahead? 

   According to Shobha Mishra, joint director, Federation of Indian Chambers of Commerce and Industry (FICCI), "This is the era of selffinancing institutes. Since 2006, we have seen how private institutes have done better in terms of quality than aided colleges. Today, even Public Sector Units (PSUs) look to recruit students from private institutions, as their curriculum is more responsive to market demand." 

   Mishra added: "Moreover, we should encourage more private players to join the education scenario as they have strong industry links, which would be beneficial for students." So, while there seems to be a broad consensus on the need for private education, regulation and quality control remain a major concern. 

REGULATORY ISSUES 

Anish M Wig, CEO, International College of Financial Planning (ICFP), stated: "About 20 years ago, Bajaj Capital wanted to set up a Bajaj Business School but decided against it in light of the existing regulatory mechanism. We finally set-up ICFP in 2002 to offer diploma programmes in financial planning, as these programmes don't come under the purview of the All India Council for Technical Education (AICTE). Most government institutions miss the thrust due to rigid norms, while private institutions respond better to the market demands and trends. We have the flexibility to innovate." 

   Another take on regulation is that the market should decide which institute is better equipped to cater to its demand. C S Venkata Ratnam, director, International Management Institute, New Delhi, said: "AICTE should work towards ensuring minimum norms required to be fulfilled by such institutions and towards keeping a check on sub-standard practices. But beyond that, it should let the market guide the institution." 

   Agrees Mishra, "Let us not have the old regulatory framework. Most professional institutes are private entities and there is an urgent need for change in the regulatory mechanism. These institutes aren't being allowed to innovate. Everything cannot be measured on the same yardstick." He cites the example of the Central Board of Secondary Education (CBSE) and how it facilitates schools to innovate rather than to merely regulate them. 

BLAME GAME 

According to Sunil Jindal, CEO, Vishveshwarya Group of Institutes, Greater Noida, "The only hurdle for private institutions is the lack of government aid. While our government run counterparts get the best brains, we are left to make the most unemployable youth employable. And yet, private institutions are stigmatised in the name of commercialisation of education. Serious institutions will not dilute their brand for money." 

   He added: "People have to understand the fact that private education has a big role to play in the tier-II level. Students of premier institutes would always get lucrative offers, but premier institutes can't support the masses. If we don't allow private institutions to grow, we would be creating more unemployment." 

FUTURE PARTNERSHIPS 

D Purandeswari, minister of state for human resources development, higher education, informed that the government is now evaluating public-private partnerships (PPP) for the IIITs (Indian Institutes of Information Technology). "But the mode of partnership and regulations are yet to be finalised. For example, for the IIIT in Hyderabad, the state government provided the land and basic infrastructure and the central government also did its bit.We are now examining whether such initiatives can work out for other IIITs as well, in collaboration with the private sector." 

   She further said that discussions on private partnerships are currently underway, where private players would get to come forward and contribute. `We have set up a committee in this regard and now, we will have to wait for the committee's report.'' 

   In all, as Mishra summarised, "We have to take a cue from how the industry was treated and liberalised. At present, the education sector is at the same stage - straitjacketed by regulations yet eager to be liberalised. After all, the aim is to motivate quality, be it in the public or private sector."

 

 

 

 

 

Sunil Sharma

   Moderator

Dil Se Desi Group

&  www.dilsedesi.org

Career as Corporate Lawyers

Corporate lawyers needed

 

THE BIRTH OF POWERFUL AND AGGRESSIVE DOMESTIC CORPORATIONS HAVE CREATED A NEED FOR CORPORATE LAWYERS IN INDIA

 

ACROSS the globe, there has been a distinct rise in the number of students who take up law as a profession, making this third wing of the democratic system, one of the most sought-after careers. 

   Still, the image of lawyers as people wearing black coats, hanging around musty civil courts waiting for work, prevails. In reality though, lawyers today are not only making news, they are also making more money than ever before. 

WHAT IS CORPORATE LAW? 

Vineet Budhiraja, who has just completed an LLM in Competition Law from the University of London, explains,"Corporate law connotes law of companies or corporations. It deals with all matters, from the birth of companies to their dissolution. Corporate law has wide scope in terms of legal practice, as it includes issues related to floatation of companies, corporate restructuring, and corporate governance, among others. Most law firms organise themselves into different practice groups or departments." 

   As a corporate lawyer, you need to be commercially oriented, as well as have a good understanding of the law. Hence, understanding your clients' businesses and the industry sectors is essential. 

   Prateeksha Toshniwal, a practising corporate lawyer, shares,"A corporate lawyer's client base is very varied and typically includes entrepreneurs, privately owned businesses, as well as large multinational corporations like pharmaceutical giants Glaxo-SmithKline and BP.Most corporate lawyers also act for a range of financial institutions, including high street banks and investment banks." 

JOB RESPONSIBILITIES 

Budhiraja explains,"The corporate department in some firms tend to include commercial law elements as well, ie, activities like drafting and negotiating commercial agreements. On the other hand, some firms may classify commercial activities as a separate department.The best way to look at it is that corporate law is a generic term that encompasses all the business activities of a corporate." However, the key responsibilities of a corporate lawyer include - 

• Due diligence 

• Research and writing memos 

• Contract drafting and review 

• Formation and housekeeping of corporate entities 

• Preparing filings for state and central agencies 

LAWFUL ENTRY 

You can study law after class XII with any subject, and take up the integrated five-year BA LLB programme, or opt for a three-year LLB course after graduation in any subject. 

   The integrated five-year law course (BA LLB) is now offered at over 50 universities in India. For a five-year course, candidates need to have completed class XII with a minimum of 55% and appear for an entrance exam conducted by the university or institute.There is an all-India entrance test for admission to the five-year degree course, which comprises a test in English, numerical aptitude, general knowledge and aptitude for legal studies. 

   Some colleges are also offering a BSc LLB in place of a BA LLB which is a slightly more specialised yearlong degree programme.

  

Sunil Sharma

   Moderator

Dil Se Desi Group

&   www.dilsedesi.org

The Counsellor - 20

Course details 

I have passed my class XII in science, (PCM) securing a 50%. Please give me details about the BSc degree from Ignou. Can I participate in competitive exams and apply for a PG in some other university? 

   Manish Verma

 

Indira Gandhi National Open University (Ignou) offers a choice of BSc (Gen) and BSc with physics, chemistry, maths, biology, life science,nautical science,nursing etc. Since Ignou is a fully-recognised university, you can easily apply for PG courses in any university provided you have the requisite marks. You can sit for any competitive exam including the UPSC (union public service commission) civil services exam as well. 

   As you must be aware, the application deadline is in July. For details, log onto their website:

 

www.ignou.ac.in  

Legal courses 

Is BGL (Bachelor of General Laws) and LLB the same? If I complete BGL, will I be eligible to practice as a lawyer? 

   Lucky

 

BGL and LLB courses differ in their scope and duration. While BGL is a two-year course, LLB takes three years for completion. Eligibility for both the courses is a Bachelor's degree. However you can pursue an integrated 5-year BA LLB programme straight after class XII.

 

According to the Bar Council of India, you cannot practice in a court of law after BGL or BAL (Bachelor of Academic Laws),though you can join a solicitor's firm or give legal advice. Besides, your degree will be an asset in various jobs, which require knowledge of law such as CS (company secretaryship), personnel management, industrial relations, consulting, working with NGOs and LPOs (legal process outsourcing). 

Public notary 

I am a woman lawyer practicing in court for the last six years. I am interested in becoming a public notary but I have heard that one requires at least 10 years of work experience. Is this true? Also could you please tell me a little bit about the work profile? 

   K Sera

 

Notaries draft, verify, and attest various deeds and documents both judicial and non judicial such as conveyances and power of attorney concerning real estate, factories etc. 

   Notaries often bear witness to and certify signatures on legal documents. Also you will be called upon to prepare a person's last will and testament that we so often see hotly contested on TV soap operas. 

   Sometimes the courts direct notaries to exercise the function of Protem (temporary), judge, magistrate, commissioner or arbitrator. 

   Appointment of a notary is a statutory appointment, which is done under the Notaries Act. 

   To answer your first question, the eligibility for becoming a public notary is as follows: Advocates (civil/criminal/ taxation/revenue) who have been practicing for the last 10 years and enrolled with the Bar Council of India, having a no-objection certificate from the concerned Bar Council are invited by the judicial branch of the State government. 

   However applicants belonging either to SC, ST, OBC and women candidates need only seven years of legal practice.

 

Age permit 

What is the age limit/relaxation for exams conducted by the Staff Selection Commission? 

Ramu Mishra

 

The age limit is different for different posts. Make sure you confirm this from the respective exam notices published in Employment News/ 

Rozgar Samachar. Generally the age limit is 18 - 27 years. 

   The relaxation in upper age limit is as follows: five years for SC/STs, three years for OBCs and 10 years for the physically handicapped. For widows, divorced women and judicially separated women, the age limit is 35 years for UR category; 40 years 

for SC/ST women and 38 years for OBC women. For ex-servicemen and departmental candidates, it is best to consult the exam notification.

 

Archaeology courses 

While studying history as part of my BA programme, I have developed an interest in archaeology. Could you please suggest some universities that offer this subject at the PG-level and also tell me about the job prospects in this field? 

   V.K. Vyas

 

Archaeology is the systematic study of extinct societies, and the past of living societies through excavation analysis, and interpretation of their artifacts, human and other remains. Besides archaeological theory you will learn about field and dating methods, conservation, and cultural and physical evolution. 

The Archaeological Survey of India (ASI) offers jobs related to this field. You can also opt for jobs in museums, research institutions, the travel and tourism industry or work with bodies like the Indian Council for Cultural Research (ICCR) or the Indian National Trust for Art and Cultural Heritage (INTACH). Private collectors also require the services of archaeologists. There are increasing opportunities both in the public and private sectors in heritage management, curating and academics, regional archaeological services and development work both in India and overseas. Teaching and creating public awareness is another option. Preserving our rich and diverse heritage is of utmost importance. And heritage can be protected only when you share your knowledge with the people living in the surrounding areas and co-opting them in your conservation effort. 

Specialisations in this field include epigraphy (deciphering ancient inscriptions), numismatics (the study of old coins, medals, etc to reconstruct history), restoration and conservation of ancient monuments, heritage sites and artifacts. 

Some institutions, which offer PG courses in archaeology and related fields in the north are the Barkatullah Vishwavidhyalaya in Bhopal, the Banaras Hindu University in Varanasi and the Kurukshetra University. Some notable courses that can be pursued in this discipline include the two-year Masters in archaeology and heritage management and Masters in conservation, preservation and heritage management offered by The Delhi Institute of Heritage Research and Management, and a two-year PG Diploma in archaeology offered by the Institute of Archaeology, ASI.

 

 Sunil Sharma

   Moderator

Dil Se Desi Group

&   www.dilsedesi.org

Portal providing Edutainment

 Portal providing edutainment

 

THE things that come to mind first when one thinks about YouTube are movie clips, music videos, entertainment and the like. However, with the internet fast becoming a dependable medium for sharing information, education too has found a place on the website. 

   The website, which hosts user-generated videos, has been helping impart online lessons in engineering as well. YouTube India and the ministry of human resource development launched a programme called the National Programme on Technology Enhanced Learning (NPTEL) a few months back. This joint initiative between all the seven Indian Institutes of Technology (IITs) and the Indian Institute of Science, Bangalore imparts online lessons in engineering free of cost through the website nptel.iitm.ac.in. 

   As part of the programme, web and video-based supplements for a large number of engineering courses were created to help teachers and students in India.There are nearly 1,600 hours of lectures available at present. And within the next few months, all the 110 video courses developed under the NPTEL project will be included. 

   In future, there will be a single repository containing more than 5,000 hours of curriculum-based learning in five major engineering subjects at the undergraduate and beginning postgraduate levels in India. Further, for the benefit of everyone in India and abroad, the site can also be accessed directly from

 

 www.youtube.com/iit.

 

A broadband connection with a speed of about 512 kbps is recommended to view the lectures. 

   The video courses, organised as playlists, are categorised as core sciences, civil engineering, computer science and engineering, electrical engineering, electronics and communication engineering and mechanical engineering

 

 

Sunil Sharma

   Moderator

Dil Se Desi Group

&    www.dilsedesi.org

New BEd programme for DU

New BEd programme for DU

 

DELHI University's (DU) Faculty of Education plans to introduce a new BEd programme from next year. Under the new scheme, the faculty aims to make the BEd programme more practicebased and also to increase the duration of the programme from one year to two years. "In today’s world, the role of 'critical inquiry' in teacher's preparation has gained tremendous importance. It is in this context that a teacher education programme of a longer duration is conceptualised, which provides for a structural as well as intellectual and experiential space to student-teachers to think and reflect upon their own practice," informed Bharati Baveja, head and dean, Faculty of Education, DU. 

   "The new programme aims to strengthen the relationship between theory and practice. So, the student will be both, a researcher and a problem solver. The programme would be essentially rooted in ground realities of our education system where a student will play an active role in identifying crucial issues and developing school education," she said. 

   The existing programme teaches students theories that are either foreign or outdated. "The new programme's structure would be evolving in nature. Students will be required to give feedback on the real issues he/she faces in the classroom," said Baveja. The faculty aims to achieve this by organising group discussions, paper presentations and theme-based discussions for students after they return from their training period. 

   As the present duration of the programme is short for teaching students, sending them for practical training and then taking their feedback, the faculty will extend the BEd programme to two years. "Once the university incorporates the semester pattern for all its postgraduate courses, we will be able to increase the duration. One year would be devoted to learning theories and the other for rigorous practical training. So, students will get to teach and also give us feedback," explained Baveja. 

   Further, the faculty is also working with the UK-India Education and Research Initiative (UKIERI) on a research-based project on how to make mentors more effective. The findings of the research will be implemented in the new BEd programme. "Under the present scheme, the students who undergo training are observed and mentored by teachers in their respective schools. We also observe them. However, since teachers who are already working are in a better position to mentor them, we would try to formalise this mentoring system under the new scheme," stated Baveja. 

   The faculty will train 20 teachers from each school affiliated to it on how to mentor the students who go for training. "We will use UKIERI's project findings on mentoring to train school teachers. This would also help in aligning the teachers' approach towards education with that of the faculty," added Baveja.

  

Sunil Sharma

   Moderator

Dil Se Desi Group

&    www.dilsedesi.org

ROI for an MBA

 

CASH IN

 

AN MBA AT A PRESTIGIOUS B-SCHOOL ABROAD MAY SEEM LIKE AN ELUSIVE DREAM FOR MANY,  HOW YOU CAN RECOVER THE COST OF AN INTERNATIONAL MBA FASTER THAN YOU THINK

 

   Business school is an investment: an investment of time, resources and money. Some candidates who wish to pursue an MBA programme, will look into the costs of the course and dismiss it out of hand, shocked at both the financial and personal costs they are likely to incur. Others will realise the potential benefits of this prestigious international business qualification and understand that with decades of working life ahead of them, the benefits of moving careers, an increasing salary and the potential of international networks over the next 40 years, an MBA will be one of the most valuable investments they can make. 

   Despite the value of such an investment, the initial costs of an MBA are expensive, particularly for Indian students. Having a rough idea of how long it will take to regain the money spent on your programme — known as Return on Investment (ROI) — can be reassuring. 

   Tools like QS Search and Scorecard ( www.topmba.com/scorecard ) provide customised results pertaining to your particular situation. 

   For example, an Indian MBA candidate wanting to study in the UK may find Lancaster, Oxford, and Ashridge will likely provide the best ROI. That is, 20 years following business school graduation, the percentage of the amount invested in tuition costs will be highest after attending one of these schools, as opposed to others.The results show the amount of time, according to the average salaries for graduates from those schools, to repay the investment they have made in paying for the course. It is not necessarily an indicator that salaries are extremely high after graduating from these schools,though they certainly can be,but ROI is one of the key priorities an aspiring MBA candidate should consider. 

   As an example, Scorecard can examine the ROI of three different schools offering different programmes — a twoyear programme at a top US school, a two-year programme at a less competitive school, and a one-year programme at a business school in the European Union (EU). 

   Harvard, Rutgers, and INSEAD will be used to demonstrate the above. The following results are based on a female with two years work experience and a pre-MBA salary of US$40,000, employed by a company with fewer than 5,000 employees. 

   Top US school, Harvard will require an investment of approximately US$147,000, yet the average graduate can expect about a 47% salary increase (this figure will vary depending on the graduate’s post-MBA occupation). Therefore, we can predict an approximate time period of seven years to ‘break even’,ie,to regain the cost invested in the MBA programme. 

   Attending Rutgers will cost the student approximately US$108,000 for the two-year programme. In comparison to Harvard graduates, the MBA graduate from this university can expect about a 69% increase in her salary, resulting in only a five year period to ‘break even’. 

   Graduates of the one-year MBA programme at INSEAD in France can expect approximately a 55% increase in their salary, post-MBA. As the tuition cost is US$90,000, we can conclude that it would take about four years to ‘break even’. Cranfield in the UK, yielded similar results. 

   Khrisan Singh, a graduate of Ashridge, relates, “I grew up with the concept that only the top five schools are the ones worth attending,and that if I didn’t gain acceptance to at least one of them, my dreams of becoming a well-paid, highly educated business professional would be shattered. Once I truly reviewed the facts, keeping in mind that my return on investment is of great importance, I learnt that the best investment doesn’t necessarily correlate to the best-known institution, and that the skills I would learn throughout my MBA aren’t only accessible at the most advertised schools.” 

   Indian MBA candidates travel worldwide in search of business schools that suit their personal and professional development. The 2008 QS TopMBA Applicants Survey, the world’s most comprehensive survey of those considering an MBA, reveals the US and UK as the two most popular study destinations for Indian students; 86% of Indian students pursue their MBA in the US, 56% head to the UK, and 38% choose Canada. Indian students also head to destinations such as: Singapore (32%), France (24%), Australia (23%), Switzerland (11%) and Spain (10%). Around 30% of students remain in India. 

But how do Indian students fund this investment? The majority of Indian students (39%) fund their MBAs from loans, followed by scholarships (36%). To estimate the true cost of completing an MBA, candidates need to take into consideration tuition fees, living, travel and book costs. Course fees have risen in recent years, but salaries and bonuses have also risen and the payback period has actually reduced slightly over the last five years. Nunzio Quacquarelli, managing director, QS and QS World MBA Tour, says salaries for graduate MBAs from top international programmes have increased significantly over the last two years, since 2006. “Average salaries for MBAs graduating from top US schools such as Tuck, Chicago, Wharton and Stanford averaged US$110,000 in 2007 compared to an average MBA starting salary of US$93,500 in the UK and Europe, and an Asian average of US$71,000.” 

“To calculate ‘true earnings’candidates should also take into account the ‘sign-on’ bonus offered by many MBA recruiters, and the potential to earn a further US$15,000 during a summer internship,” Quacquarelli says. 

Many factors will impact your ROI — from the economy to your post-MBA occupation to the country in which you wish to work after your studies. Programme content, alumni reviews, recruitment statistics, and location in terms of enjoying life outside of the classroom are a few of the many things to consider when choosing a business school. 

Ross Geraghty, Editor, Top MBA Career Guide, says,“There are many factors an MBA candidate has to consider. ROI is one of them, but the quality of the faculty, the companies that visit schools to headhunt MBA talent, and the location of the school are also important. 

“Traditional rankings like those produced by the Financial Times are static and don’t take into account the candidate’s personal choices or preferences. It’s true that seeing the same names repeatedly will reinforce a student’s opinions, but you also have to remember that those schools will be the most competitive and the hardest to get into. Look closely at the schools’ core content and faculty interests. That, combined with career services and ROI, may be the best guide for you,” adds Geraghty. 

 

Sunil Sharma

   Moderator

Dil Se Desi Group

&

www.dilsedesi.org