Do MBA graduates deserve such high salary packages?

NO. if they are paid high only to ensure everyone else remains lowest paid or for following unethical practices to accrue quick gains.

Yes, if they derive respect through actions and their support resources are equally well paid. And, they strive to realize their national, corporate social and other responsibilities with same zeal as they demand their personal perks.

Sonam in simple terms if you describe it its the just the elder child getting jealous when one newborn enters and takes all the attention. Okay as you say IIM candidates takes a higher salary as compared to the engineers. But did you checked that what is the percentage of engineers studying MBA in IIMs? No, you hadn't checked that. Because if you had then you might not perceive the situation like this. Okay just make it clear for what purpose an firm is established? for profit. Who makes that its the leader and the management team and the technical and non-technical executives. But at the end of the day here only those person excels who are not very good technical but very good professionals. He/she may be an Engineer or accountant or HR or Mktg person. But he/she must be an great performer.

 So what i am trying to portray is that the Candidates of IIM fetch high salary only because they are the deserving ones. Because they had fought the battle  and won it when they entered into IIMs and they deserve high package CTC.

 But as you see deeply then you will finds out that 70% IIM candidates are experienced ones.

  Okay now take the situation as a Engineer's perspective and explore the whole situation. Engineers are extremely talented that's why they are engineers and working in such great companies and having such great positions. But you hadn't complained when you got a salary which is two times more then a fresh MBA from a Govt or normal B school. As for an example taking case of IT companies they provide easily Upto 2.4-3.6 for B.E candidates but only 1.2-1.8 for a fresh MBA ones.

 So if you ignore the IIM candidates then only you can see the real life around you for the MBA ones.

I hope you now will look the clear in depth situation and then decide by your self

If this trend remain more, that MBA should get pay more then it will demorolize engineers like me and later on a time will come, when nation like india will struggle to find good engineers.

    Like ME and my some of engineering friends are already fed up and some of them already left the country which don't value for engineer and now next me. An engineer can also do what a MBA can do and even better. Then why to pay more to MBAs who don't even know what does drawing mean in engineering.

   Actually in india also it should be mandatory to have atleast 2-3 years of experience to get into MBA. And on top level of management only engineer should be hired cuz they have much more analysis, logical and creative skills then people from other background.

An engineer also can do all the job what a MBA can do. I am working simultaneously at two companies at one I am handling design and R & D  and at other I am handling purchasing and marketing. Still I have to work very hard to earn which will be far less than a worse mba salary

NO.

India win in sky found water in moon. Indian astronauts have developed theories without telescopes . but western people never agreed what we found . They told moon has no water . they told no livingthings in extraterritorial.mmm. you wont realiaze India. India never bothered when Doctors flew to US. But now Indian hospitality better than any country. You people hate, cheaper things. but you are loosing the better things that we have. We have so many number of excellence and hence here survival may be a problem. But it is not the fault of India. with a population of 110 crore we are in the race. Please dont compare other nations which have less than 500 years of History.

no the degree does matter alone but the skills of a person also matters....nd if a person have more skills den a person who has completed MBA...den d othr person shld have a higher salary den a MBA'n...nd infact i would like to add one more point that the top 10 companies in the world have senior mangers who don't have an MBA degree...but still you can see there salaries...so its more important to have skills and experience than holding just a degree

Management skills develop with experience even without having MBA degree.There r many people at top management without MBA degree. I surely agree that there is a huge hype over MBA degree.

I agree with you and would like to add a point to this debate that, these are the M.B.As who were hired by the topmost organizations in Middle East and has caused a country like Dubai to come in the list of recession even though getting such high salaries for reading two extra books?

yes, we have to agree with this arguement.Basically , the founder of organisations are not MBA`s(TATA.BIRLA,AMBANI,Infosys,or Microsoft,Warren,etc;) But the empire expanded such like that , They need persons who can manage such like their ancestors. But they failed to promote their honest sub ordinates and believe in western theory. Poor people they would realize soon,  Papers can not create  TARAS or AMBANIS.

IIM grads get higher salaries because: (a) their selection process if rigorous; only the best of the lot get in (b) IIM environment is competitive, demanding, and requires students to put in their best (c) IIM network in the industry is excellent; they support each other (d) unlike many of the other business schools, almost all entrants to IIMs are already experienced (e) IIMs have developed a solid reputation over the years inside and outside India; that helps a lot (f) most IIM grads take up jobs in investment banking or areas that are high-paying. But then their salaries are indeed too high and unsustainable in the long-run. It is not going to work for long.

yes iam totally agreee

now days getting a mba degree becomes  just like earning a brand name no matter

that the person have knowlrdge

because knownlege is which is not just confined to books only

rightly said in three idot

A normal graduate, CA, Lawyer....can these guys bring down 118 year old company. You need to give MBA grads the credit for 2+2 = 150236799990000111 kind of formulas that took Wall Street indices that high. MBA has become more like a expensive clothing...no matter who wears it his value will goes high.

iims might be best in management,but i feel we r promoting the wrong people as these people has done little for the country by not promoting the entrepreneurial skills unlike engineers,considering the quantum of salary paid to the engineers which is negligible ti iims,engineers like narayan moorthy have started out company like infosys.

we need a better application of philosphy by our politicians and academicians.

a engineer will try without any backup to promote his entreprunal skills where as these guys from top business college are moved worry about salary and brain drain to western countries......

With due respects to the management gurus, I feel that all the hoopla about being a management graduate is not all hype. There is a semblance for the education that you take. Its called specialisation. So you take the route that you have learnt to manage.

Salaries are the sole discretion of the company and its structure of heirarchy. Its their prerogative and if they so choose to pay more to a person who is highly qualified so be it!!

I think that attaching importance to such things by any individual who is lesser qualified need not dampen their spirit because what you posses is a thing called "never say die attitude"... That is really rare in todays world. Qualified people find it easy to quickly move from a company to another and catch the hike in salary. What you have different is the fact that you qualify to a very perky and peppy attitude which goes like this;

"When the going gets tough...

                                                            The tough get going...!!"

So people who are less than an MBA in qualification you have a much bigger quality and that according to me compensates for any salary at all!! Thanks for the referral...

(BTW I am not an MBA at all)

I just did a quick check of some highly paid or valued graduates of the IIMs in the year 2000. The following names cropped up :

Shashank Raghuvir Kothi , Rajnil Mallik , Samanth Dutta , Raja Sengupta , Vikas Kedia.

Where are all these priceless people 10 years later ?

Kothi seems to vanished from this earth ! So also Samanth Dutta , unless he's changed his name to Sam Dutta.

Rajnil Mallik has become a senior management person in Opera Solutions based in Shanghai ; the less said the better.

Vikas Kedia's rise , fall and rise has been documented on Wikipedia -http://en.wikipedia.org/wiki/Vikas_Kedia

In short , it is clear that good people shine , whether in IIM or not , whether from IIM or not.

Those who are not up to the mark , get some amount of polish from their couple of years spent in IIM , but thereafter it's the same old story viz. "you can fool some of the people ..."

It's all hype and nothing else.

While MBA is one such degree that gives a definite boost to academic qualifications, it surely is not one that makes holders deserve high packages. There are values other than mere degree that helps arriving at ones package. I'm just a graduate and have climbed the corporate ladder purely on experience but the way education industry has opened and large number of private players have entered, I think MBA today would be as good as BA/BSc was those many years back.

Even after putting in time and money to be an MBA and also to polish the skills, the present MBA's donot deserve the prevalent high packages. There are companies who take them on with the brand equity and face value but realise it soon enough that experience does have its own value.

It is just a hype created to an extent and other fact being the IIM students having thier core competencies in thier respective domains..viz CA, ICWA..

If we closely analyse the placements we shall find out that thses are mostly financial consultancies which are promoted by or of foriegn companies subsidiaries.

Packages in generic companies like tradin and manufacturing sector won't be that high.Morover Indian companies won'  be paying that high level of salaries.Even if we consider big Indian conglomerates like the Birlas  and the Tatas we shall not see such high level of salries being paid even for experienced people..

Only xyz stockbroking firm in Asia pacific etc.would pay such high salaries.

Clearly it is  a descrimination and does not mean that MBA s from other institutes are of inferior quality if entry level packages alone were to be of any indcation.

I am an MBA in 1997 batch ofPune University and we were a pioneer batch of that Institute.Now looking back 13 years almost all 60 Class mates are doing very very well.Only thing we did not have at that time was a strong MArketing programme for our Brochure distribution.

Entry level package alone cannot be the SOLE AIM for and MBA and for that matter any professional.Continueous sustained growth with steady progress and ability to deliver under pressure are more important in one's career path.

All in all we can sum up that such institutes and their candidates are very highly overrated.Barring a few,many are firedd by thier high paying employers which is never publicised!!!

Look what happened to Lehmann Brothers. They employed many many such IIM  grads at very high remuneration.  Market analysis is all those grads know and do but they failed miserably that time. So the companies should be cautious when it comes to over paying the freshers.

I would probably agree with you only on the discrimination factor dished out in terms of the "MONETARY PACKAGE". At the same time lets give credit to world class education offered by the highly competitive "IIM's" & their respective channel employers...coming to the difference amongst "IIM's" & "non IIM" graduates or "PEOPLE" in particular, it would be unwise to draw any comparison between the same as it is the prospective employer eventually & not the educational institution who sees potential in a prospective employee and thereby sums up his worth...

There many aspects to this situation than just brand equity. 

1. From the employer's point of view, their expectation of the recruited talent is very high. They will never get satisfied. It typically causes problem for the employer with other employees in simillar cadre. Mismatch in pay structure is one of the most contributing factors to attrition.

2. The employee has tremendous pressures on him to perform way above expectation from day one. It takes a terrible toll on one's professional as well as personal life.

3. It also puts a significantly different buying power in the hands of these people and they dont mind paying more for what we all get at different rates. The question of fighting against higher costs gets blown out the door. This is contributary to inflation.

4. The only one who profits from this is the Income tax people as they get a larger cut of the employee's salary. More so now than before since slowly the last 5 or 6 finance ministers have plugged all the loop holes for tax exemption.

I dont think this is right. There should be a structured pay scale for all employees and if they perform better than others, the organization can always vote him a bonus.

No I dont support this idea of astronomical salaries.

Its not only about IIM . it about experience people who have done MBA other IIM but have completed MBA from well recognized university  . are they not well talented then  IIM candidate . we have focus on this area too ..

I didn't read that news completely.. but there could be a case where the offered package was in some other currency and it appeared as 1.4Cr in indian currency. I always heard about the notion of IIM grads getting bright compensations, but 80LPA is something about which I observed my mouth wide open :-O ...don't know why but the real work force behind any effort has always been underpaid since centuries... :-) ... I don't say that they should be paid lesser, but yes the driving force should be paid better.