Salary levels before IIM's

[krm]

good one grabel...nicely composed the confusion in the minds of working people ( around 3-4 yrs of exp.).....I discussed with few people abt this issue, they r not quite sure how a experienced person will be considered after his mba from IIM.

dont know whether companies really considers their work experience or treat them as freshers....

can somebody throw more light on this issue....

[grabel]

krm there is something called lateral placements at each IIM's. I dont know the exact process or eligiblity but it is supposed to help the people with experience to get a job at some higher level of management hierarchy not as a freshers...

regards
grabel
PS: Thanx PG and ghulam...

[Sameer Gupta]

My take on this would be that certainly money does matter, but the quality of job and career advancement is a major issue for experienced ppl and certainly NOT MONEY while going for an MBA.

I know in SPJain, there are more than 5-6 guys who have left nearly more than 6 lacs of salary and have come for MBA.. On asking them.. the reply comes.. MONEY is not an issue... the quality of work and career advancement is..!!

There is a Merchant Navy sailor also in our batch who used to earn nearly $ 2500 per month when sailing.. so you can assume... For merchant navy, I am sure guys would point about their lifestyle. So certainly money is not an issue..

The network which is created... is also one of the reasons..

I really do not think that salary should be a decision criteria when going for an MBA.. but then ofcourse while IN MBA course... it should become one of the issues to work on so that one does not end up getting less than what they were earning before!!

Here in India, because of the large share of freshers doing MBA, salaries is an issue. Most of them are not aware of the paradox which happens after 3-5 years of working...
Ppl do not give so much importance to money... and I would like to tell all the freshers to think over and discuss such issues with their xperienced friends, if any or their parents... (if not working in govt. sector I feel).

Also with regard to the opportunity cost, it is a factor which comes into picture when there are alternatives... I am sure my other Bschooler friends would have learnt in Costing about it...
When experience ppl decide for an MBA.. it becomes the only option left.. and hence opportunity cost does not comes into picture.. I know this is a theoritical concept so I would advise ppl to add up only the savings part of it... do not add up the entire CTC for opportunity cost.. !! Ask the software guys... how much do they actually save..??

Whatever it be... think before jumping into the MBA race.. if it is JUST for salary.... think again.. !!

[RahulSharma]

Coming back to this issue again. Career and advancement issues come when you have enough in the purse.

Answering Sameer.
As for the software guys saving, some save over 20K while living in a different city from their home.

The reality is that we all are looking for good money.
If tomorrow comes RAT(non-management) where 2 year after fetches us 15L, CAT will be ditched by many of us.
Nobody talks about management, the field they want to get into after clearing CAT.

[Garuda]

Just wanted to share some stuff-

Theres a lateral placement program which takes place in just about all the IIMs i think (sometime in 5th term). Atleast tehres one at B. For a person to be eligible for laterals, he should be having atleast 20 (or 22) months of work experience. And if they get a job thru the lateral program, they can defer their decision and also participate in the final placements with the rest of the batch. Pay is good. period.

Just a glimpse at some of the profiles in my batch-

1. A Doctor (just completed his MBBS degree)
2. More than 5 guys with around 5 years of work experience. These guys have worked abroad, worked in good organizatinos in india, receieved decent pay packets bfore coming here ( read greater than 8-9 lakhs)
3. We have a topper from UC Berkeley.
4. And...loads of studs from the best colleges of the country.
Going beyond the salary factor, its just amazing interacting and getting to know all these people. Just my 2p
Regards,
Garuda

[RahulSharma]

Originally Posted by Garuda

Just a glimpse at some of the profiles in my batch-

1. A Doctor (just completed his MBBS degree)
2. More than 5 guys with around 5 years of work experience. These guys have worked abroad, worked in good organizatinos in india, receieved decent pay packets bfore coming here ( read greater than 8-9 lakhs)
3. We have a topper from UC Berkeley.
4. And...loads of studs from the best colleges of the country.
Going beyond the salary factor, its just amazing interacting and getting to know all these people. Just my 2p
Regards,
Garuda

Exactly. A very good reason as to why one should spend 2 years into a top B-school.

[Pravi]

well, money is ofcourse not at d first place for me to go for an mba...uptill class 12th i was a typical student...get up-go to school-tutions-playing-sleep, all @comforts of home. did'nt knew much whts going in d outside world...my awareness level was quite low...thnx for being from a small town.

it was when i spent my 4 yrs in engg college, away frm home, in a batch of students from diff parts of country, living a 24*7 lifestyle between college-hostel i realized how much its adds on to your personality, in terms of Peers-n-Faculty you interact with...n not to forget the kinda hostel life u live !!

top mba schools go further in similar regards, u get an oppurtunity to rub ur shoulders with one of d best-n-diverse lot, both peers-n-faculty! the kinda 360 degrees environment u get in top b-schools is amazing.
agreed, mba from abroad will provide u a most diverse crowd, everyone dreams to b a part of kellogs-wharton n d likes...but it might not be feasible for many, due to some reason or d othr. again some kinda a 'cost-opportunity' analysis

well, its gud tht education in india is cheap, no harm, americans have a debt ridden society...their entire life goes in paying some kinda debt or another...so they dont mind adding another to d kitty. in india people still give more importance to saving kinda lifestyle...well i wont comment on whts gud n whts not, its always upto u to choose...

Also, its after working for more than a yr i have genuine resons of mine for 'why mba' stuff. i have a better goal clarity !

so no one liners, its upto u to sit n think for yourselves, every indiviual is unique in its own way...i knw its not tht simple as it sounds...but u have to make a start... so as my signature says...

cheers !!

[Psychodementia]

I apologize if my understanding of this thread is wrong. But I get a feeling (without going through the details) that money is getting underplayed. On a humorous note, it is like that Sprite adv.

Your Colleague : Hey !! Kya yahan baita 6lpa kama raha hai yaar !! Naye mockCATs de.... Naye quant fundae seekh. Night out Maar....Fundoo percentile leke aa like me....! Do something cool man !!

You: Achha ! To usse Kya hoga ..

Your Colleague : CAT !!! Calls !!!
Har GD main tu No 1!
Call converts !! BLACKI yaar !!

You : Phir kya hoga...


Your Colleague: Summers mein stipend..Phir Placement day !!!
One day U will be in a great s/w Company man !!

You : Acchha to phir kya hoga...

Your Colleague: Abe phir tu aish karega ! Koi kaam nahin karna padega !
Araam se office aayega aur 6lpa ka package le jaayega.

You : To ab main kya kar raha hoon ????


"Dikhawe pe na jao, apni akal lagao.
MBA hai waste, trust only copy-paste "

NO OFFENCE MEANT STRICTLY !!!

On a serious note, what you miss out is the UCB topper (no idea why he chose an indian MBA though) or the MBBS doctor have an idea of what life has to offer them ahead. They have kind of made a road map of where they want to go and what they want to do. They reckon better than slogging out more years for a Phd with no interest (the UCB guy) or working in a govt dispensary in remote part of kerala (the doc), they figured that an MBA was a closer way to reach the goal.

And money does factor in some part of the big picture I guess. It is just that in India we don't have to worry about the piddling fees for ROI, but most of my friends who have gone to do an US mba, worry about it from Day 1 !

BTW, is it only me, or everyone else also feels that chucking a 9lpa package for even IIM-B is kind of scary to imagine for me. I for one, would probably never do that.

Arun

[Garuda]

Well, i wudnt really belittle anyones plans or courses which they have set for themselves so easily dude. Every person knows what he wants to do next and they set out in that path. Neither u nor i know what course they have set for themselves.
So maybe its safe not to dismiss anything so easily . And doc from a dispensary in kerala?? Dude, get ur facts right bfore u shoot off like that. Try to think along their line of thought as well, If u cant think in that way, then rather not comment on it, especially when u dont have the entire picture infront of u.

[grabel]

Today one of my very close friend went to IIMB to discuss the similar things with my college seniors who are studying there... They said that most the salaries(not all companies..still majority) which are shown in figures are CTC...He cited the example of a job at a very famous bank which pays arnd 9/9.5 lacs CTC but the hidden thing is that they include 2.5 lacs of training... !! He further stated that the guys having real salaries >=8 would not be more than 10-12in the campus(IIMB website says that figure to be 25 in year 2003).Moreover those high paying jobs are generally grabbed by CA's etc..not people like us.... Engineers being most in the number are not much preferred. They mainly get jobs in systems with same software companies whom they leave. (the thing taht is available in plenty is not preferred most of the time)

Moreover he added one more thing, these days there is market boom in software..so one should not hide in an institute. One should come in market and make money...(obviously if he can/if he has good job). After 2-3 years the market will again go down..(its a cycle) ...then u can take hostage in an educational institute and earn education. This way you can adapt yourself to the market and maximise the returns.

My motive of starting this thread is not to belittle all the guys who have entered into IIM's. Neither I want to say that going to IIM is totally useless..Infact I know a few of college-mates who passed out this year with jobs like ITC (6.5 lacs), DE Shaw(5.7lacs) and joined IIMA.

Regarding costs, 3.5 lacs may look small to many of you but man its INDIA..3.5 lacs is still a big amount..atleast for me. I went to ICCI and enquired abt the loan. To take a loan of 3.5 lacs and repay that means 12.5k rs EMI(after tax deductions etc..) for two years.. which means a person has to invest 4 years( 2 for study..2 to repay the loan)..

Just saying that a couple of persons who were earning 6 lacs have joined IIM, a doctor joined IIM, a university topper joined IIM wont suffice..Infact on the similar note I know 5-6 guys who left IIM's for jobs. What I request you to tell us what exactly was the thing which attracted them....You(means those who are in doing MBA currently) said that we had some goal, some vision, some thoughts which provocate us to join an MBA. U said that guy with 6 lacs had sommething in his mind, so he came here. But what is that vision...what are those long term goals..what is that 'AMRIT' which attracted them even after having such nice jobs...

According to IIMB website:
in year 2003 there were 45 guys in the slot 3.4 to 5 lacs
30 guys in the slot 5 to 6...

in year 2002 there were 59 guys in the slot 3.4 to 5
42 guys in the slot 5 to 6.

now mind you this is CTC...subtract a good percentage from it...and then decide..
This is the difference between software and such companies. Software companies generally show GROSS CASH COMPENSATION as a metric...but these banks/traditional companies show COST TO COMPANY as a metric......

This means that there is more than half probablity that a person might land up in a job which is less than his current job.

GOD i am damn confused!!