Why do the top ten B-Schools in India get packages that are ten times higher (30 lacs and 40 lacs) than B, and C type of B-Schools?

The quality of students you get in IIMs, IIFT and FMS are very good. You can get innovative ideas from their minds and also they can provide you with a solution to a problem when they are put under critical and stressful situations. That quality of students you don't get in a B or C Tier B-Schools. So, it is the skill set of those students, their ability to innovate and their problem-solving attitude fetches them a package of 20 to 25 LPA which a company will happily give if it is getting a quality student. Also, the environment that they have in top B-Schools also prove to be a determining factor in the growth of that individual student. In other Tier-2 and 3 colleges, you don't get that kind of environment and you aren't put under that kind of hectic life schedule where you can take decisions within minutes. So, it is the quality and skills that ultimately decides the package that a student will get.

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The top 10 campuses will get higher offers as compared to other campuses. The major reason for this is their brand name. The top 10 campuses include IIMs and major campuses like XLRI, SYMBIOSIS, CHRIST, PSG, IBS, etc. All these campuses are well versed in education standards since it's establishment. These campuses always try to market its students. The marketing of their brand name always creates a good image in front of the major MNCs.

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After getting a management Diploma from IIM, you don't have to worry about a job as many reputed institutions/companies are willing to hire people with IIM Diplomas. Now, the pay packages are huge for IIM pass out, but depending on various factors such as his particular specialization, marks, designation, state, and last but not the least, his own potential, the salary ranges are diversely constructed. The institutes have world-class facilities and infrastructure. The faculty is also well qualified and excellent. The entrance exam CAT is one of the smartest one to be cracked. So, the students at the institutes are the screened ones. All these factors make the recruiters pay salary to the bright minds of the country. Another thing that plays a role is the popularity. IIMs are now more popular than any other college.

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Let me explain this question with an example: Last time my colleagues and I were given an annual target, it was modest net profit figure of 60 times our base salaries and most of us accomplished it. Though this could be considered as one off case as targets for people working in corporate banking averages 40~90 times the base salary in top banks. The loan sizes people deal with are more than Rs. 50 Crores and considering huge loan size the numbers can be achieved. Even excluding corporate banking profiles, IIM and top 20 B School graduates are given multifold targets and the industry expects the same to be achievable. There is no pompousness in touting the achievement as that is the reality. Companies won’t pay that much unless they expect the candidate to bring them multi fold in return. As students of IIMs and other top B-Schools, we were succumbed to grueling sessions of work and play which sometimes extend till 4~5 days continuously. This process would repeat multiple times in a trimester. I don’t say that the output was always great but if we consider all other parameters and time constraints, it was considered to be good. We were expected to perform under similar situations in corporate world, not continuously though. I say that in situations where there was lots of data or limited data, we were trained to take calculated decisions. There is a misconception among public that most of the IIM graduates get Rs. 1 crore jobs but that is not true. Typically all these 1 crore jobs are the ones based out of foreign locations with higher cost of living. In addition, most of these 1 crore jobs are trading related where people can make a killing if they bring higher table profits to their firms. In some of the firms, 25% profit is shared with employees. But all these are on off cases and do not reflect the broad spectrum of job profiles. To conclude I would say that the average salaries enjoyed by IIM graduates are considerably high but so do the value extracted by the companies from them.

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Not all students of Indian Institute of Management (IIM) get packages mentioned above. Only a few students of top BSchools get the package of above 30 LPA. I partially agree with you. Of course, IIM or other top B-School students get higher packages as compared to other college students. This is because the top minds of the country usually prefer top B-Schools. The selection process is not a that easy. These institutions provide best products to the companies. The course structure and overall development of the students of top B-Schools are better than Tier-2 or Tier-3 B-Schools. Hope it helped. Thank you.

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Hi, This is also one of the misconceptions about B-schools but yes, that's true that the packages you will get after studying in top 10 B-schools will be higher 10 times than any other type of B-school because it totally depends upon the rate of return you will be getting because if you are studying in top 10 B-schools you’re paying that kind of fees also and the IIMs are the brand so before approaching any other kind of B-schools big companies approach to that brands.

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Hello, There are three main reasons for the fact that the premier B-schools acquire top-notch placements as compared to the average and/or below-average B-schools. 1. Crowd: Only those who not only score high in the various entrance exams, but also perform well in the highly-competitive interview rounds are eligible to take admission into the top-ranked B-schools. Thus, there is a dominance of intelligent and smart minds in such institutes. 2. Pedagogy: The teaching imparted in those top-ranked B-schools is such that it meets the latest corporate trends and inculcates the problem-solving skills of optimum level. Also, the rigor of MBA curriculum ensures that the students are on their toes, most of the times, and capable of efficient multi-tasking. 3. College brand: The brand of a B-school goes a long way in ensuring the top companies of any sector visit it during the placement season and recruit the best of the best. For example: A company will always prefer a FMS or an old IIM over a B-school which ranks outside the top 40 in India.

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The corporate world looks for the brand name of the B-School and the performance of alumni's from the respective B-School. Good performance of alumni is benefited to juniors and the process goes on. What IIM gives you is a brand, a tag that people think highly of when you join the industry. This definitely gives you an advantage when it comes to getting your views registered with top management. People will look towards you with expectations, you get better projects and more exposure and position of responsibilities consequently. All these combined leads you climbing the corporate ladder at a faster pace than your peers. Other obvious reasons are the students reaching top-tier B-Schools are toppers of respective graduation fields. Teaching methodology also keeps these institutes above the rest.

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That's one huge myth right there. Agreed that top B-School's students get much higher packages as compared to normal B-Schools, but the difference in salary is around 15-25 LPA in general and not as much as 40 LPA with a few exceptions. The median salaries at IIM-A, B, C is around 20 LPA while Tier-2 colleges have around 5-6 LPA in general. Very few students from IIMs get 30+ LPA jobs. Now, answering your question: IIMs and other top B-Schools take candidates after a tough screening process. They take in account the CAT scores (which makes sure that only pretty smart students go to next round) and take interviews and written tests separately which further ensures the quality of students. So, students who enter the IIMs and other top B-Schools are dedicated and smart individuals having great analytical skills and leadership qualities. On the other hand, anyone can go to Tier-2/3 colleges. So, top B-Schools provide the best candidates to the industry so they get much better packages as compared to other colleges.

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Hi, The only reason is that they put a lot of focus and hard-work towards their specialization that company’s compete for them. As I said, they are the best lot from India. They also get the best professors from the industry who guide them in the best way. Companies do expect a lot from them as they invest a lot in them. They also handle much more pressure than B and C level B-school.

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