In a paper [pdf] from July 2006, Prof. Ramesh Gupta (professor of finance at IIM-A) takes a critical look at the explansion plans. Insisting that the paper is not about the reservation issue, he still raises some uncomfortable questions about IIM-A's priorities. In particular, he shines a sharp spotlight on its Post-Graduate Program for Executives (PGPx):
PGPx is a new program having 61 participants. These are mostly Indians who have worked abroad as software engineers for about 4-5 years and want to do MBA to enhance their market opportunities. In a bid to internationalize the programs, IIMA decided to offer PGPx (one year executive MBA program). For this program, GMAT score (considered easier than CAT) is used for admission. Competition to get in is much less as there are about 1200 applicants for 60 seats in PGPx compared to 1.5 lakh [150,000] applicants for 250 seats in PGP. IIMA offers the cheapest program in the world with top class facilities and fully paid five week international sojourn.
IIMA charges an all inclusive fee of [Rs 800,000, about $18,000] for the program. This includes tuition fee, five weeks of fully paid immersion program, lodging and boarding, computer and library usage fee, teaching materials, placement fee, etc. A rough estimate suggests that this is a highly subsidized program costing the Institute about [Rs. 20 million] (roughly [Rs. 250,000 to 300,000] per participant) just to cover the direct costs.
There is more:
Of 80 planned apartments by June 2007, 27 have been occupied by PGPx married participants. Fully air-conditioned apartments are so big that some participants even house their maid servants to take care of their children while living on campus. A rare treat for PGPx participants only IIMA can provide.
Do read his paper. It is a real eye-opener, with all kinds of interesting information about faculty salaries, their income through consulting, and even interdisciplinary politics!
* * *
Yesterday's Hindu carried a story about the views expressed by Prof. N.S. Ramaswamy (founder Director of IIM-B):
... Prof. Ramaswamy contended that the faculty in all the IIMs were putting in just about half the number of hours of work they were supposed to put in as per a decision taken by the faculty four decades ago.
He said each IIM on an average had a 100-member strong faculty.
And, as per a decision taken by the faculty 40 years ago, they have to give 100 hours annually to the two-year post-graduate programme and other long duration programmes. In faculty hours, this adds up to 10,000 hours annually and his contention is that only half is used up.