ANUPAM CHAUHAN

UMA BHARTI
MANJU BAGHEL
 HR Ethics
⌂ No well-established mandatory professional
standards

⌂ Ethics and business knowledge as important

as HR domain expertise

⌂ Each situation requires a judgment call

 Analyzing HR Dilemmas
⌂ Right v. Wrong
“No one will know if I do not pay taxes on this
under-the-table income, so I can save myself
quite a bit of money.”

⌂ Right v. Right
Selecting the best option
 Examples of Right v. Right
Dilemmas
⌂ It’s right to tell the truth, but it is also right to
be kind and considerate of peoples’ feelings
and emotions.
⌂ It’s right to apply rules and procedures
equally, without favoritism, but it is also right
to give special treatment to hard-working,
dependable, and productive employees.
 Examples of Right v. Right Dilemmas
(cont’d)
⌂ It’s right to spend more time adding more quality
to your work but it is also right to meet deadlines
and avoid “diminishing returns” on your efforts.

⌂ It’s right to be concerned about short-term

results, but it is also right to focus on long-term
growth and stability.
 Guidelines for Fostering an Ethical
Culture
⌂ Have a well developed policy and
procedures manual
⌂ Enforce policies
⌂ Reward compliance
⌂ Recruit ethical employees
⌂ Create a division to oversee ethics
 Guidelines for Fostering an Ethical
Culture
⌂ Have a well developed policy and
procedures manual
⌂ Enforce policies
⌂ Reward compliance
⌂ Recruit ethical employees
⌂ Create a division to oversee ethics
 Ethical culture in worklife
⌂ Honest communication
⌂ Fair treatment
⌂ Special consideration
⌂ Fair competition
⌂ Responsibility to organisation
⌂ Corporate social responsibility
⌂ Respect for law
 In Past

⌂ In 50’s – Employees were recruited not to question

‘WHY’ but only ‘To do’.

⌂ In 60’s – Terms like manpower, staff and personnel

came to used.

⌂ In Late 70’s – People realized that beyond a point,

productivity depended on people.
 Evolution Of HR in India

Period Development status Emphasis Role

1920s-1930s Beginning Welfare clerical stroke disciplinary

,dismissal of workers]

1940s-1960s Struggling for Recognition Introduction to HR Administrative

techniques and IR [leave, bonus, retirement etc]

1970s-1980s Strong industrial relations Managerial

and disputes,Regulatory [housing, medical leave etc]

1990s Promising Human values, Executive

productivity through [formulating policies, T&D
people programs, MDPs etc] and
managerial role
 Starting of hrm in india

⌂ The world’s first management book, titled ‘Arlhashastra’,

written three millennium before Christ, codified many aspects
of human resource practices in Ancient India.

⌂ John Patterson, the president of the company, formed a

personnel department to manage the griefs of workers after a
bitter union strike in 1901.
 Continued…
⌂ The first Factories Act was adopted in 1881. The Factory
Commission was appointed in 1885. The Factories Act, 1948
(Amended On 1987).

⌂ In 1929 – Royal commission of labour in India.

⌂ In 1931 – J.H. Whitely recommended the abolition of ‘JOBBER

SYSTEM’ and the appointment of labour officers in industrial
enterprises.
 Continued…
The scope of the function of labour officer was widened during the
second world war such facilities as housing, medical etc.

Labour officer <=> Welfare Officer

Under the Industrial Disputes Act, 1946.

Formulating policies on human resource planning, recruitment and

selection , training and development etc..

Welfare Officer <=> Personnel officer

Under section 49 of factories Act, 1948.
 Two professional bodies were found
 In 1948 - Indian Institute Of Personal Management (IIPM) at
Kolkata .

 In 1950 - The National Institute Of Labour Management (NILM) at

Mumbai.

 In 1980 – These two professional bodies merged together and

formed ‘National Institute Of Personnel Management’
(NIPM) headquartered at Kolkata.

 In 1990 – Milestone was achieved by renaming of American

‘Society For Personnel Administration’ (ASPA) as
the ‘Society For Human Resource Management’
(SHRM).
 LIST OF AMENDING ACTS AND
ADAPTATION ORDERS
⌂ The Indian Independence (Adaptation of Central Acts and
Ordinances) Order, 1948.

⌂ The Adaptation of Laws Order, 1950.

⌂ The Part B States (Laws) Act, 1951 (3 of 1951).

⌂ The Industrial Disputes (Amendment and Miscellaneous

Provisions) Act, 1956 (36 of 1956).
 ContinueD…
 The Industrial Employment (Standing Orders) Amendment
Act, 1961 (16 of 1961) .

 The Industrial Employment (Standing Orders) Amendment

Act, 1963 (39 of 1963).

 The Central Labour Laws (Extension to Jammu and

Kashmir) Act, 1970 (51 of 1970).

 The Industrial Employment (Standing Orders) Amendment

Act, 1982 (18 of 1982).
HR PAST AND PRESENT:

04/29/20
18
 HR Ethics Activities
⌂ Staffing and selection
⌂ Fostering the perception of fairness in the processes of recruitment and
hiring of people.
⌂ Formal procedures
⌂ Interpersonal treatment
⌂ Providing explanation
⌂ Training
⌂ How to recognize ethical dilemmas.
⌂ How to use ethical frameworks (such as codes of conduct) to resolve
problems.
⌂ How to use HR functions (such as interviews and disciplinary practices) in
ethical ways.

© 2005 Prentice Hall 14–20

Inc. All rights reserved.
 Staffing and selection
⌂ Know your employment law

⌂ Follow the ethical recruitment guidelines

⌂ Use pre-employment information services

⌂ Use reference checking forms

 Training Practices
⌂ Training (future orientation):
• Education is extremely valued, and training is an extension
of it.
• Entry point training programs (3 to12 months of
orientation).
• Ongoing training programs.
• Development programs (promotions involve training).
• In-house training centers are a common feature in Indian
organizations.
• Deductive learning style in training: Known as “top-down
approach” where learning principles start with general
concepts and move toward specific application.

©SHRM 2008 22
 Training
⌂ To recognize ethical issues

⌂ Use of ethical guidelines to resolve

problems

⌂ Targets and methods of ethical training

 HR Ethics Activities (cont’d)
⌂ Performance appraisal
⌂ Appraisals that make it clear the company adheres to high
ethical standards by measuring and rewarding employees who
follow those standards.
⌂ Reward and disciplinary systems
⌂ The organization swiftly and harshly punishes unethical conduct.
⌂ Workplace aggression and violence
⌂ Taking care that HR actions do not foster perceptions of inequities
that translate into dysfunctional behaviors by employees.

© 2005 Prentice Hall 14–24

Inc. All rights reserved.
 Performance Appraisal
⌂ Cultural dimensions of collectivism and power distance make objective
appraisals a challenge.

 Supervisors and subordinates develop close relationships.

 Organizational loyalty is as important as work performance.
 Employee promotions are frequently based on seniority.

⌂ Annual performance appraisals.

⌂ Supervisors provide performance ratings that are frequently inflated due to
personal relationships.
⌂ Employment at will does not exist in India. Employment termination carries a
social stigma.

©SHRM 2008 25
 Compensation and Benefits
⌂ In addition to a base salary, compensation includes:
⌂ House rent allowance (HRA*).
⌂ Medical allowance.
⌂ Dearness allowance (DA*).
⌂ Leave travel allowance (LTA*).

⌂ Several categories of leave (vacation) exist:

⌂ Sick leave: 7 days (medical certificate required).
⌂ Casual leave: 7 days (for personal and family
emergencies, requires prior permission of boss).
Employees can take maximum 2 days at a time
⌂ Annual leave: 3 weeks (after one year of employment).
⌂ Federal holidays: About 20 days.

©SHRM 2008 26
 Compensation and Benefits
⌂ Retirement age:
⌂ 55-60 years (private sector);.
⌂ 60 years (public sector).
⌂ Retirement Benefits: Employees receive two lump-sum payments when they retire:
⌂ Provident Fund (similar to 401(k))
• Typical contributions: 10-12 percent of base salary (employer and
employee).
• Payable on retirement, voluntary separation, death.

⌂ Gratuity
• Only employer contributes (15 days salary per year of service).
• Tax-exempt for employees.
• Payable on retirement, voluntary separation, death.

©SHRM 2008 27
 Compensation and Benefits
⌂ Organizations are seen as an extension of the family.

 Provide both short-term and long-term personal loans.

 Personal loans for housing, car, home maintenance and family emergencies.

 Loan amounts vary by position and level in organization.

 All employees after their probation (confirmation) period are eligible.

⌂ Many medium and large organizations have cafeterias with subsidized

lunch facilities.

©SHRM 2008 28
 Compensation and Benefits
⌂ Executives receive special benefits to reflect status such as:

• Club memberships.
• Overseas training.
• Company housing.
• Company cars.
⌂ Provided with drivers.
⌂ International cars.
⌂ Operational and maintenance costs.
• Phone bill reimbursements.
⌂ Organizations provide business and cell phones.

©SHRM 2008 29
 Equal opportunity laws

⌂ Age discrimination

⌂ Disability
⌂ Ethnic/National origin, colour, race, religion,
gender
⌂ Fair labour standards
 Reward and disciplinary
systems
⌂ Performance appraisal

⌂ Appeals and grievance procedure

⌂ Discipline system
 Ethical discipline
⌂ People not employees
⌂ Job description is clear
⌂ ”What to do ” attitude compared to ”Don’t
do this” attitude
⌂ Top managers example
 Effective dismissal
⌂ Factors
⌂ Legal and valid reasons for dismissal
⌂ Explain the reasons
⌂ Be firm with your decision
⌂ Process
⌂ Informal action
⌂ Disciplinary meeting
⌂ First written warning
⌂ Second written warning
 Termination interview
⌂ Be straightforward
⌂ Explain the purpose of the interview
⌂ Benefits after losing the job
⌂ Document the exit interview
⌂ Be prepared for questions
 A salary and benefit audit identifies a grading error which
advantages a high performing employee, but the manager
instructs that the error be concealed

 A senior manager's serious disciplinary offence is hushed

up, while for the same misconduct, ER practitioners have
instructions to institute an immediate disciplinary enquiry in
the case of junior managers and line supervisors

 A line manager dismisses an employee with a known

terminal illness, or a disability, which causes the family to lose
the death benefit, and leave with nothing, even though the
employee could have been retained until demise;
In a labour dispute in the High Court , the ER Manager or
legal representative deliberately does not call the HR
practitioner as a key witness, and crucial evidence is not
given and an unfair outcome happens

 In the recruitment process, a Safety Manager places

pressure on an HR practitioner to disclose confidential health
status information, which is then used to justify not hiring the
person

 The HR executive places insurance business with a

specific insurer or broker in order to receive a kickback or
commission for doing so
The employer's Employment Equity Plan as submitted to
the Department of Labour is deliberately not being followed;

An contracted-in medical practitioner decides to side with

the IR Manager in a disciplinary enquiry into an allegation of
misconduct for intoxication at work, to maintain good
relations and keep their contract with the employer

 A Safety Manager ignores a medical practitioner's Health

Risk Report, or fails to respond within a reasonable time (or
to respond at all) to the key safety and health compliance
recommendations by the doctor in it
 An HR Manager pressurises the medical practitioner to
declare an employee unsafe, to allow the employee to be
removed from their post or to dismiss or retrench them;

 A line manager or senior practitioner appoints his or her

relative or business associate in contravention of the
established recruitment procedure

 An employed practitioner decides not to confront the

Manager they report to, because the annual performance
review cycle is coming up;

 A line manager refuses to establish posts which can be used

for return to work from benefits or sick leave, or to provide 'light
duty';
 Human Costs
⌂ Unethical business environments can:
⌂ Demotivate individuals
⌂ Make good employees leave the company
⌂ Attract unethical employees
⌂ Lead to the lack of trust by the employees for
the company
 What Is Trade Union?
⌂ A trade union or labour union is an
organization of workers who have banded
together to achieve common goals in key
areas such as wages, hours, and working
conditions.
 Role of trade unions
⌂ To negotiate better wages with the employers
⌂ Basic pay, Overtime payments, pensions
⌂ To negotiate the number of working hours
⌂ To ask for suitable holidays
⌂ Maternity & Paternity rights
⌂ To demand for better working conditions
⌂ Health rights, Safety rights
⌂ Unions also help with educating & training of
workers to improve skills
 Role of trade unions

⌂ Unions sometimes participate in measures to

improve product demand.
⌂ Unions sometimes provide workers benefits like
pay during strikes, sickness & unemployment.
⌂ Some Unions are also known to run co-operative
societies to offer benefits like loans at lower
interest rates.
⌂ Unions work with the governments to introduce
legislations to benefit workers – example fixing a
national minimum wage.
Social responsibilities of trade unions
include:
⌂ promoting and maintaining national integration
by reducing the number of industrial disputes
⌂ incorporating a sense of corporate social
responsibility in workers
⌂ achieving industrial peace
 Trade Unions & Wage Claims
⌂ Trade Unions demand wage increase
on account of
⌂ Hard work & increased productivity
⌂ Increased profits
⌂ Comparing wages of similar workers –
Comparability argument
⌂ Increased cost of living
INDUSTRIAL ACTION
Some Images Of Trade Unions
 Strikes

⌂ A strike is a very powerful weapon used by trade unions

and other labor associations to get their demands
accepted. It generally involves quitting of work by a
group of workers for the purpose of bringing the
pressure on their employer so that their demands get
accepted. When workers collectively cease to work in a
particular industry, they are said to be on strike.
 Causes of strikes
Strikes can occur because of the following reasons:
⌂ Dissatisfaction with company policy
⌂ Salary and incentive problems
⌂ Increment not up to the mark
⌂ Wrongful discharge or dismissal of workmen
⌂ Withdrawal of any concession or privilege
⌂ Hours of work and rest intervals
⌂ Leaves with wages and holidays
⌂ Bonus, profit sharing, Provident fund and gratuity
⌂ Retrenchment of workmen and closure of establishment
⌂ Dispute connected with minimum wages
 Legal Aspects Of HRM
⌂ Discrimination
⌂ When someone is denied a job or position for non job related reasons

⌂ Equal Employment Opportunity

⌂ The right to employment and advancement without regard to race,
religion, sex, color or national origin

⌂ Affirmative Action
⌂ An effort to give preference in employment to women or other minorities

⌂ Comparable Worth
⌂ Persons performing jobs of similar worth should receive comparable pay

⌂ Bona-fide Occupational Qualifications

⌂ Employment criteria justified by capacity to perform a job
Legal Aspects Of HRM
 UNETHICAL PRACTICES
⌂ Worker Adjustment and Retraining Notification Act (1989)
⌂ Employment losses covered by the law:
⌂ Terminations other than discharges for cause, voluntary departures, or
retirement
⌂ Layoffs exceeding six months
⌂ Reductions of more than 50% in employee’s work hours during each
month of any six-month period.
⌂ Penalty for failing to give notice
⌂ One day’s pay and benefits to each employee for each day’s notice that
should have been given, up to 60 days.

© 2005 Prentice Hall Inc. All 14–53

rights reserved.
 Layoffs
⌂ Layoff are not terminations.
⌂ Temporary layoffs occur when:
⌂ There is no work available for employees.
⌂ Management expects the no-work situation to be
temporary and probably short term.
⌂ Management intends to recall the employees when
work is again available.

© 2005 Prentice Hall 14–54

Inc. All rights reserved.
 Bumping/Layoff Procedures
⌂ Seniority is usually the ultimate determinant of who will work.
⌂ Seniority can give way to merit or ability, but usually only when
no senior employee is qualified for a particular job.
⌂ Seniority is usually based on the date the employee joined the
organization, not the date he or she took a particular job.
⌂ Companywide seniority allows an employee in one job to bump
or displace an employee in another job, provided the more
senior person can do the job without further training.

© 2005 Prentice Hall 14–55

Inc. All rights reserved.
 Alternatives to Layoffs
⌂ Voluntarily reducing employees’ pay to keep everyone
working.
⌂ Concentrating employees’ vacations during slow periods.
⌂ Taking voluntary time off to reduce the employer’s
payroll.
⌂ Taking a “rings of defense approach” by hiring temporary
workers that can be let go early.

© 2005 Prentice Hall 14–56

Inc. All rights reserved.
FACTORIES ACT, 1948.
INTRODUCTION
In India the first Factories Act was passed in 1881. This Act
was basically designed to protect children and to provide few
measures for health and safety of the workers. This law was
applicable to only those factories, which employed 100 or
more workers. In 1891 another factories Act was passed
which extended to the factories employing 50 or more
workers.
Definition of a Factory:-
“Factory” is defined in Section 2(m) of the Act. It means any premises
including the precincts thereof-
i. Whereon ten or more workers are working, or were working on any day
of the preceding twelve months, and in any part of which a manufacturing
process is being carried on with the aid of power, or is ordinarily so
carried on; or
ii. Whereon twenty or more workers are working, or were working on any
day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or is
ordinarily so carried on;
But does not include a mine subject to the operation of the Mines Act,1952 or
a mobile unit belonging to the Armed forces of the Union, a railway
running shed or a hotel, restaurant or eating place.
 Employee Privacy
⌂ Employee privacy violations upheld by courts:
⌂ Intrusion (locker room and bathroom surveillance)
⌂ Publication of private matters
⌂ Disclosure of medical records
⌂ Appropriation of an employee’s name or likeness
⌂ Actions triggering privacy violations:
⌂ Background checks
⌂ Monitoring off-duty conduct and lifestyle
⌂ Workplace searches
⌂ Monitoring of workplace

© 2005 Prentice Hall Inc. All 14–60

rights reserved.
 Managing Dismissals
⌂ Dismissal
⌂ Involuntary termination of an employee’s employment with the firm.
⌂ Terminate-at-will rule
⌂ Without a contract, the employee can resign for any reason, at will,
and the employer can similarly dismiss the employee for any
reason (or no reason), at will.
⌂ Limitations on “terminate-at-will”
⌂ Violation of public
⌂ Implied contract
⌂ Good faith

© 2005 Prentice Hall Inc. All 14–61

rights reserved.
 Employer to ensure health of workers pertaining to

•  Cleanliness Disposal of wastes and effluents -Sec 12

•  Ventilation and temperature dust and fume - Sec 13
•  Overcrowding Artificial humidification Lighting – Sec. 14
•  Drinking water Spittoons. - Sec. 18
 Safety Measures
 
•   Fencing of machinery – Sec. 21
•    Work on near machinery in motion. – Sec 22
• Employment prohibition of young persons on dangerous
machines. – Sec 23
•    Striking gear and devices for cutting off power. – Sec 24

• Self-acting machines.- Sec 25

·    Casing of new machinery.- Sec 26
·    Prohibition of employment of women and children near cotton-
openers.- Sec 27
 Welfare Measures

• Washing facilities – Sec 42

• Facilities for storing and drying clothing – Sec 43
• Facilities for sitting – Sec 44
• First-aid appliances – one first aid box not less than one for
every 150 workers– Sec 45
• Canteens when there are 250 or more workers. – Sec 46
• Shelters, rest rooms and lunch rooms when there are 150
or more workers. – Sec 47
• Crèches when there are 30 or more women workers. – Sec
 Working Hours, Spread Over & Overtime of Adults
• Weekly hours not more than 48 - Sec: 51
• Daily hours, not more than 9 hours. - Sec: 54
• Intervals for rest at least ½ hour on working for 5
hours. - Sec: 55
• Spread over not more than 10½ hours. - Sec: 56
• Overlapping shifts prohibited. - Sec: 58
• Extra wages for overtime double than normal rate of
wages - Sec:59
• Restrictions on employment of women before 6AM and
beyond 7 PM. - Sec: 60
 Annual Leave with Wages

• A worker having worked for 240 days @ one day for every
20 days and for a child one day for working of 15 days.
• Accumulation of leave for 30 days.
Sec. 79
 Sec.92 to 106
OFFENCE
   For contravention of the Provisions of the Act or
Rules
   On Continuation of contravention
   On contravention of Chapter IV pertaining to
safety or dangerous operations.
   Subsequent contravention of some provisions
   Obstructing Inspectors
   Wrongful disclosing result pertaining to results
of analysis.
   For contravention of the provisions of Sec.41B,
41C and 41H pertaining to compulsory disclosure
of information by occupier, specific responsibility
of occupier or right of workers to work imminent
danger.
PENALTIES
   Imprisonment upto 2 years or fine upto
Rs.1,00,000 or both
   Rs.1000 per day
   Not less than Rs.25000 in case of death.
   Not less than Rs.5000 in case of serious
injuries.
   Imprisonment upto 3 years or fine not less than
Rs.10, 000 which may extend to Rs.2, 00,000.
   Imprisonment upto 6 months or fine upto
Rs.10, 000 or both.
   Imprisonment upto 6 months or fine upto
Rs.10, 000 or both.
   Imprisonment upto 7 years with fine upto Rs.2,
00,000 and on continuation fine @ Rs.5, 000 per
day.
  Imprisonment of 10 years when contravention
continues for one year.
Coping with Turbulent Times in the Indian Aviation
Industry

Jet airways layoff- what kind of

HRM?
 THE CASE
⌂ The case is about the retrenchment drama that
unfolded in one of India’s leading aviation companies,
Jet Airways (India) Limited in Oct 2008.

⌂ More than thousand employees were laid off.

⌂ It was a part of major Cost-cutting exercise to tackle

Global slowdown and price hike of Aviation fuel.
 The retrenchment drama
unfolds…..
⌂ Oct 16, 2008, Jet announced that it would lay off
nearly 1,100 of its staffs to streamline operation.

⌂ A day after it had already laid off around 800 of

its cabin crew members.

⌂ Simultaneously announced second phase of lay-

off of 1100 employees, mainly from departments
like flight attendant, cockpit crew etc.
 Retrenchment drama
unfolds……
⌂ Amidst great furor and opposition by various
organizations and political parties, Naresh
Goyal , chairman of Jet, reinstated the
employees a day later the great emotional
drama.

⌂ November 2008, Jet decided on a 20% cut in

the salaries of its pilots, engineers, and some
other staffs.
 Some salient issues……

⌂ Employees were FIRED with no PRIOR

NOTICE

⌂ The entire force of unconfirmed staff was being

laid off on a 30-day compensation package

⌂ Company took action only against lower staffs.

 Ethical issues……
Some most crucial questions unanswered….
Where would those 1900 employees go?
 Why took action only against lower grade
staffs?
 Senior management was very less affected.
 What would be the future of those students
currently taking courses in cabin crew,
captain etc?
 Ethical issues…….
 Why did the Jet CEO enter the competitive
market, instead of playing down after foreseeing
risks?
Some quotes made by higher officials…..
"A total of 1,900 people are being served separation notice. 800 have already
been served notice. In the next few days the others will also be served notice. It
is an attempt to save the jobs of remaining 11,100 employees,“
Saroj Datta (Exe Director)
“It is a difficult decision but we had to take it,”
Wolfgang Schaeur (CEO)

It throws a serious question towards the accountability

of an organization to its employees……….
 Some observations…..
 The very existence of any company is because of
its employees.

 Company keeps on focusing on customer

satisfaction when its own people are so highly
dissatisfied.

 Employees are more than just-a-resource.

Protest against management……
 Points to ponder
 No company would know of a risk over night, its
built over a period and there should not be any
drastic decision which may endanger its
employees.
 More accountability from top management.
 The role of HR executive is important to
ascertain that people’s interests are not left
aside in the race for profits
 The HR executive to ensure no discrimination in
pay cut and lay off.
 Before reaching to decision, make environment
conducive to acceptance of decision.
General aspects
 Questions for discussion
Q.Can there should be separate canteen for
top level management and lower level
management?
Q.Should IIM charge high fee
than other B-School?
Before joining any MBA Course) 

What  - What type of institutes you can get admission?

 

Why  - Why you want to do MBA – for  getting good job , starting your
own company as an entrepreneur  or getting one more degree?
 

Where -  Where can you afford to do MBA – Foreign Country, any

reputed institute  in India or any institute with low budget ?
 

When  -  When you want to do MBA – Just after graduation, after getting
4 -5 years experience, or  along with your job?
 

How  - How will you pay back your fees and ROI for the same?
 

Which  -  Which  specialization attracts you or can get job for you?
All reputed B Schools of North America, Europe and Oceania  are very
costly – Fees & Stay costs varying from Rs 30 Lakhs to 60 Lakhs  (all
inclusive)

The popular institutes like ISB (Hyderabad),  IIMs etc

normally charge between Rs 7 Lakhs  to Rs 20 Lakhs  (New IIMs and
management institutes of IITs charge less).

FMS Delhi  charges very less fees for their high quality education, but

most of other institutes approved or run by Govt. Universities charging very
low fees are other type  of FMS (Factory for Management
Studies!) giving very low quality education, without proper faculty, facility
and infrastructure.

Any private institute charging less than Rs 3 or 4 Lakhs fees may   not

be in position to impart  high standard education.

But private B Schools charging high fees and comparing  them with

IIMs, also may not be providing good quality  education . These could
be other type of IIM – ‘Interested In Money!’ only.
Categorization of MBA colleges in India and their
fee structure
The business schools in India are categorized into three. They
are Class-A, Class-B and Class-C.

The B-Schools coming under Class-A are the most reputed

institutes in the country offering MBA courses. One of the
examples for the Class-A institutions is the Indian Institute of
Management. There are 10 IIM’s that are spread all over the
country. The admission in these institutes is given only for the
outstanding students. Thus the fee structure for the programmes
in these institutes will also be higher. To pursue the MBA
graduation from IIM, one has to pay about Rs. 12 lakhs. The
present scenario states that IIM is going to raise the fee
structure for the MBA programmes. In such situation students
have to spend around Rs.15 lakhs in order to pursue degree
from these institutes.
The Class-B institutes are considered as the second top option
chosen by the students who fail to land up in IIMs. This class
includes the B-Schools like XLRI, Narsee Monjee, FMS Delhi and
many more. For pursuing MBA in these institutions students have
to spend around Rs.5 to 8 lakhs. It will vary according to the
institute.

The Class-C institutions are the last choice favored by the

students for pursuing MBA. These least choice institutes charges
around Rs.2 to 6 lakhs for the two year programme.
The admission to all these institutions is made based on the score
obtained by the candidates in the concerned entrance
examinations organized by the universities. Some of the entrance
tests for MBA in India are MAT, CAT, XAT, etc.
Besides all, the reputed business institutions in abroad charges
around Rs.20 to 30 lakhs and this is considered as the standard
fees for the MBA courses offered there.
IIM is an option but not the only option 
Thank You.