The financial turmoil is now in full swing and is showing its impact on world economy as well as on employment. Most of developed countries are in recession and developing country’s economy is going slow. In India this is placement season for the management and engineering students. Last year the season was full of roses for students. Some of them got a package up to Rs 1 crore. But this time there is yet no news regarding the highest packages. The only news is coming about the pink slips to employees, retrenchment which is the part of company’s survival strategies in slowing down economy.
In India every year lakhs of engineers and management students are produced by education industry which generally never face recession. Many out of them either do not get the job or if, get it below their potential and expectations. Now to be an engineer or management students is not as difficult as earlier because of mushrooming of institutes. Because of this the quality of students as per industry standards has come down.
Last year when economy was on boom, no of institutes increased their fees and seats. One of their arguments behind this was the average annual salary what the students offered. But the situation is now different for each and every institute and students who are currently passing through this worst ever scenario in world history. The students of current and just coming batches are main victim of this turmoil. The jobs have been dried up and packages have also been shrunken. They are facing a situation about which they would have never thought before joining. They had seen last year placement scenario where the companies were lining up to embrace their seniors with fat packages but the situation is just reverse, now students are looking for companies. Even though companies are coming in campus, but offered packages are not less than a disappointment for the students. Now their main objective is to be placed as early as possible. The biggest loser in this situation would be the students who had taken loans for getting admission in institutes in hope of hefty packages. This condition is not good for banking sector as well, as no. of education loans might become NPA because of poor placement scenario which might lead to defaults. The students would not be able to pay their EMI timely because the packages would be lower than the expectations and in worst cases students would not get the jobs.
In this horrible scenario Satyam fraud came as last nail in coffin for techies. This incident made the situation worst for its 53000 employees although for their rescue Government has appointed a new board. But what will be the future of those students who got placement in Satyam and were supposed to join later in April or May 2009.
This is the time for the education industry to show their professional attitude regarding the fee structure and batch strengths. When companies are reducing their work force and are giving the indication of cutting down the salaries, there is no need to increase the seats and hiking the fee. They can increase the strength of batch and fee as per industry requirement. By not increasing the seats they will help the society to control the structural unemployment.
Mayank Rastogi
PGPABM,1st year
MANAGE
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2 comments:
Right article at Right time & now we need Right decision at Recession time.Last year all politicians were debating over the reservation quota and now when the tide has taken a reverse roll I can't see the majority nor the minority with there melodramatic procession which made the headlines last year at same time in same channels.
Whatever said in the article is correct but one fact we have to live with is that seats have been increased and fees have been hiked, so stress should be more on to find out ways n method to tackle this problem. we should not forget one thing that best ideas comes at the time of crisis, live examples for which is the different companies coming out with newer methods of cost minimization and thus profit maximization.
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