IIM Act: IIMs can Decide whether to Award Diplomas or Degrees

Now that the IIM Act has been passed, one would have thought that the proceedings at the Indian Institutes of Management (IIMs) would have been smoother. However, the IIMs are facing another dilemma with the passing of the IIM Act.

The HRD Ministry has clarified that the IIMs have the right to decide whether they want to award diplomas or degrees. A senior HRD Ministry Official said that the IIMs have a good reputation in the market and they have the academic experience as well as authority to decide whether the students of the PGP course must be awarded diplomas or degrees.

The premier management institutes have discussed whether they should award diplomas or degrees to the PGDM batch that will pass out in 2018. The IIM Act was passed by the Parliament in December 2017 enabling the IIMs with the difference that PGDM diplomas will be replaced MBA degrees.

In a recent meeting held by the IIMs across the country, close to 15 IIMs have agreed to award diplomas to the current batches as the rules for awarding degrees have not been framed yet. However, some IIMs are still in favour of awarding degrees to the current batch and they will discuss the matter internally. Officials from the premier B-schools have informed that the perspective of the students will also be considered for the same.

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Problems caused after the passing of IIM Act:

• A few students at IIM Lucknow have asked the administration to award PGDM diplomas instead of an MBA degree as they were enrolled for a diploma programme.
• Another problem is that there is a perception amongst the students that the market value of the PGDM programme is more than that of the MBA degree. The reason behind that is the brand value created by the IIMs for its PGDM diploma.
• Some of the IIMs are considering offering students an option where they will have the liberty to choose whether they want to be awarded a diploma or a degree.
• The rules regarding awarding Degrees have not yet been laid down by the HRD Ministry, therefore, it is difficult for the institutes to issue degrees without the norms.
• The HRD Ministry has appointed a committee led by IIM-Sirmaur chairman, Ajay Shriram, to frame the rules regarding awarding degrees in a month's time.

Officials from the institutes informed that rules are essential in order to grant degrees as the IIMs will need clear procedural requirements. After the meeting held on Wednesday, February 28, 2018, the officials said that the final decision will be taken soon such that there is parity across all the IIMs.

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Prior to the passing of the IIM Act, the IIMs were separate bodies functioning under the Societies Act. These societies are not authorised to award degrees, hence, students were awarded PGDM Diploma. However, the act now brings IIMs under the Institutes of Eminence banner hence changing their status in the managerial market.