New Delhi: The government must come to terms with the rising stock of business managers and allow institutions like IIMs to fix compensation packages for their faculty to retain talent, says Bakul H Dholakia, who recently stepped down as Director, IIM-Ahmedabad.
“The mindset in the government is that how can a professor get a salary higher than a Secretary rank (official) in government... pay scales are rigidly ruled by government... we have no freedom,” he told PTI within days of stepping down after a 5-year-long eventful stint as director of the prestigious B-school.
“So forget about recruitment, we are worried about even retaining the existing faculty,” he said.
There is enormous demand for higher education in this country and India also has immense talent in terms of catering to this demand, he said, while asking why despite all this “we are not able to expand at a rate at which we should have.”
Describing “high quality faculty” and “proper governance” as real constraints in the expansion of higher education institutes like IIM, Dholakia said proper compensation package which may not be on par with corporate world but something reasonable must be offered to them.
“Unless we are able to expand the faculty resources, we won’t be able to expand the capacity of management institutions,” he said, adding that for this these institutions need freedom to fix salaries.
About 20 years ago, the ratio of salaries between a faculty member of IIM and a corporate executive was 1:2 but since last decade or so the corporate salaries have gone over the roof, he said fearing flow of talent to the corporate world.