Integrated Programme in Management by IIM Indore:

A failed diversification?

Indian Institute of Management are the biggest brand in India when it comes to management
education. IIM Calcutta was first IIM, established by Government of India in 1961. IIM
Ahmedabad, IIM Bangalore and IIM Calcutta are undisputedly among the top 5 management
institute in India and are highly respected among industry person India and abroad.

Building upon the success of above IIMs, GOI established various new IIMs all over India to
promote quality management education in India. There are total of 20 IIMs operating as of
June 2017. Most of the new IIMs were started after 2010. Post Gratuate Programme (PGP) in
Management is the flagship course running across all IIMs in India.

About IIM Indore

The Indian Institute of Management Indore (often abbreviated as IIM-I) is an autonomous

public business school located in Indore, Madhya Pradesh in India. Instituted in 1996, IIM
Indore is the sixth addition to the Indian Institute of Management (IIM) family of
management schools. Options to specialise in various fields such as Finance, Operations,
Marketing, Systems etc. are available.

IIM Indore offers the following academic programmes -

Post Graduate Programme in Management (PGP), a two-year full-time residential

programme equivalent to an MBA.
Executive Post-Graduate Programme in Management (EPGP), a one-year full-time
residential programme equivalent to an MBA.
Post Graduate Programme in Management for Executives (PGPMX), a two-year
alternate-weekend programme.
Fellow Programme in Management (FPM).
Integrated Programme in Management (IPM), a five-year integrated course in
management.

IIM Indore started offering its two-year full-time (residential) Post Graduate Programme in
Management (PGP) at Ras al-Khaimah (UAE) in 2011. It is the first IIM to have started
operations outside India. In 2013, IIM Indore shifted its Ras al-Khaimah operations to
Dubai. However, in 2014, it shut down its operations in its UAE campus

Integrated Programme in Management (IPM)

Launched by IIM Indore in 2011, the five-year Integrated Programme in Management (IPM)
is the first of its kind in India. The programme has been accredited by the Association of
MBAs, London (4th and 5th Year). It is a unique and creative programme meant for young
students with managerial and leadership aspirations. Through the IPM, IIM Indore seeks to
attract young students, and mould them as outstanding leaders through a world-class
education.

IPM is aimed at students who have passed out of class XII/Higher Secondary or equivalent
from schools across India.

Mission:
To produce contextually relevant, socially-conscious managers and leaders with a foundation
of world class education in social sciences followed by management education.

Learning Goals:

Given the nature of the programme (first 3 year of UG and next 2 years of PG education)
learning goals of IPM are split into those for the first 3 years and the last two years.

Learning goals for the first three years (under graduate level) of the programme:

The IPM will enable students to:

1. Demonstrate language skills
2. Demonstrate oral communication skills
3. Demonstrate knowledge of foundational subjects for management studies
4. Demonstrate an awareness of ethical understanding
5. Enhance physical well-being

Learning goals of the last two years (Post graduate level)

Last two years of the programme are at Post-graduate level and the IPM students are mixed
with the PGP programme students and they go through the same set of courses as the PGP
programme. Hence the learning goals for these two years are the same as that of the PGP
Programme. These goals are:

6. Enable students to understand relevance of context in business

7. Develop social consciousness
8. Develop critical thinking skills
9. Inculcate integrative thinking ability
10. Promote interpersonal awareness and ability to work in groups
11. Enable students to learn how to apply the basic principles of communication in order to
write effective business messages, case analysis and reports.
12. Develop competence in quantitative analysis
13. Prepare business leaders with a sound understanding of ethics
The Programme consists of 15 terms spread over a period of 5 years, with each year having 3
terms of 3 months. IPM is in two parts. The first three years build a foundation, and the last
two years focus on management.

The foundation has three major elements:

Courses in Mathematics, Statistics and Economics build analytical rigour.

Courses in Psychology, Sociology and Political Science along with courses in
Economics provide an understanding of the core disciplines on which the study of
management is based.
Courses in Science, Engineering, Humanities, Literature and Fine Arts provide breadth
and perspective.

A combination of analytical rigour and wide exposure equips IPM students for leadership
roles and positions of responsibility in different sectors.

After 3 years of intensive study of foundational disciplines, the IPM students train as
managers along with the students of the Institutes 2-year Post Graduate Programme in
Management (PGP), undertaking the same course package in management studies in years 4
and 5.

IPM students are required to complete a social internship at the end of year 3, and a business
internship between years 4 and 5. This experiential learning inculcates leadership qualities in
them and hones their managerial skills further.

On successful completion of the five-year rigorous academic experience, the participants

would be awarded Integrated Diploma in Management by IIM Indore. A Study Centre and an
Examination Centre of Indira Gandhi National Open University have been opened at IIM
Indore to facilitate the students to get a bachelors degree.

Courses Offered in First 3 Years

Mathematics, Statistics, Economics

Foundation Courses in Maths & Statistics

Game Theory
Optimization
Stochastic Modelling
Spreadsheet Modelling
Mathematical Modelling
Micro and Macro-economics
Indian Economy
 Money, Banking and Finance
Econometrics
International Trade

Psychology, Sociology, Political Science, Foundations of Management

Introduction to Sociology & Psychology

India & World Politics
Public Administration
International Relations
Business, Government and Society
Business History
Principles of Management

Others

Humanities
Literature
Languages: English, Sanskrit, Spanish, German
Foundation Courses in Science & Engineering
Communication & Presentation Skills
Film Making, Painting, Sculpture, Dance, Music

Courses Offered at PGP Level

(Same as PGP Curriculum)

Communication
Economics
Finance & Accounting
Humanities & Social Sciences
Information Systems
Marketing
OB & HR
Operations Management & Quantitative Techniques
Strategy
Rural Immersion Programme
Himalaya Outbound Programme
Industry Visit Workshop
 Other Optional Workshops

Fees and Accommodation

The course fee for resident Indians for the first three years of the IPM would be Rs.
4,00,000/- (Rupees four lakh) per annum and Rs. 6,00,000/- (Rupees six lakh) for Non-
Resident Indian (NRI) and Overseas Citizen of India (OCI). Course fee for the fourth and
fifth years would be as per prevailing Post Graduate Programme in Management (PGP) fees.
The course fee includes lodging, access to lectures, computer facilities and library.

Accommodation would be arranged on sharing basis for the first three years of IPM. Single
room accommodation would be made available for the fourth and fifth years of the
Programme.

Internship

IIM Indore has always been cognizant of an institutes role in shaping the thought processes
of its students and has, therefore, made social sensitivity a mainstay of its residential
programmes. The IPM students are required to complete a social internship at the end of year
3.In addition to the Social Internship, IPM students do a business internship along with the
PGP students between years 4 & 5.

Selection Process

The students undergo a rigorous selection process:

An application form aimed at understanding the students proficiency in academics, as

well as in co-curricular activities is filled up by the aspirant.
An entrance examination follows, to test the applicants aptitude, logical reasoning and
proficiency in English and Mathematics.
Shortlisted candidates appear for personal interviews. The interview panel comprises
wellqualified professors from IIM Indore and other prestigious institutions. The
interview judges the students level of confidence, communication skills, general
awareness, persuasion skills and knowledge.

IIM Indore admits about 120 students to the IPM every year.

Placement Statistics

IIM Indore admits about 120 students to the IPM every year. Compared to IIM Indores PGP
students, the placement statistics of IPM students are not very exciting:
Year Number of IPM Average CTC Average CTC
Students (IPM Students) (PGP Students)
2011-16 106 11.96 LPA 15.67 LPA
2012-17 100 12.52 LPA 16.23 LPA
2016
Number of PGP students 447
Number of IPM students 106
Average annual salary of PGP student (lpa) 15.67
Avg salary of IPM student (lpa) 11.96
Total number of students 553
Total salary (PGP) in lpa 7004.49
Total salary (IPM) in lpa 1267.76
Total salary 8272.25
Average salary of IIM Indore student (lpa) 14.95886076

2017
Number of PGP students 449
Number of IPM students 100
Average annual salary of PGP student (lpa) 16.23
Average annual salary of IPM student (lpa) 12.52
Total number of students 549
Total salary (PGP) in lpa 7287.27
Total salary (IPM) in lpa 1252
Total salary 8539.27
Average salary of IIM Indore student (lpa) 15.55422587
As we can see from the data (obtained from placement reports downloadable from IIM
Indores official website), the average annual CTC for the entire student community fell from
Rs. 15.67 lpa to Rs. 14.95 after the inclusion of IPM students. The same trend is observed
when we see data from 2017, when the same figure fell from Rs. 16.23 lpa to Rs. 15.54 lpa
when IPM students were included.

Ranking over the years

The IPM at IIM Indore commenced in the academic year 2011-12. The institute had a 15
year old legacy of academic excellence and was ranked 6th among public business schools in
India. In 2012 it slipped down to 7th, losing its position to IIM K, it's closest competitor on
all grounds. IIM K was established in 1996 alongside IIM Indore, admitting its first batch in
1997. It had been following IIM Indore hot on its heels since its inception. Over years these
institutes remained in close competition. When NIRF rankings were introduced in 2016, the
year when the first batch of IPM graduated, a peculiar trend was observed. IIM Indore was
ranked 10th among all the B-Schools in the country, in the list led by IIM Bangalore followed
by IIM Ahmedabad and IIM Calcutta. In this list, IIM Kozhikode ranked 6th. This was the
year when the first batch of IPM graduated. This trend continued in 2017 where IIM
Kozhikode gained one position and moved to 5th whereas IIM Indore was still 10th. This
makes us think why the growth of the institute stagnated and the arch rival grew leaps and
bounds when both of them had the strong foundation to do so.

Revenue collection from IPM

Fee structure for first three years

Tuition fee- 3,00,000(1,00,000/sem)

Hostel fee-25,000

Mess fee-45,000

Total - 3,70,000

Total estimated amount for first three years is 11,10,000

4th and 5th year( including hostel fee)

Term 1- 2,20,000

Term 22,20,000

Term 32,10,000

Term 4- 2,20,000

Term 5- 2,20,000

Term 6- 2,10,000

Total- 13,00,000

Note: Mess facility is optional for 4th and 5th year students. So it is not included.

The total expenses may come around 30,00,000 for all the 5 years.(including all other
expenses)
Source: IPM office
The fees for the IPM Programme for 4th & 5Th year is same as the PGP Programme but the
students have to pay around Rs. 4 lakhs per annum additional for the first three years .

Total seats in IPM = 120

Total fees per student for the complete course = Rs. 25 Lakhs

Revenue from the programme = Rs. 30 Crores

Total seats in PGP = 450

Total fees per student for the complete course = Rs. 13 Lakhs

Revenue from the programme = Rs.58.5 Crores

Impact of IPM on IIMI reputation

The IPM program was introduced by IIM Indore to build individuals with strong
management fundamentals and the idea was to lay the foundations young. The core
fundamentals of management were to be ingrained in the individuals right from the
beginning to shape up a competent, capable and a manager with a sound thought process.
The talent was to be identified in the formative years to as to have a distinctive talent base as
compared to other management courses.

However, the dynamics of management programs were not as simple. The important aspect
to understand here are the factors that make a management program or a B-School for that
matter successful.

The first and the most critical factor that determines the success of a management program is
the quality of the students. The PGP program across all IIMs including IIM Indore and other
top B-Schools admitted students based on national level exams such as CAT, XAT, etc.
along with the personal interviews and other tests. This process was comprehensive in a way
that it shortlisted the brightest candidates from all over the country with the right aptitude
and skill set to pursue postgraduate management education. Across IIMs, the students that
were admitted were among the top 1-2 percentile of all the students that appeared for the
exam. This way there was a little to worry about the calibre of the students admitted to these
programs and this trust is what the industry banked upon while recruiting them.

The second important factor is the education background of the students. Any IIM or a top
B-School in the country prides itself on the diversity of the education background of the
students. There are students from diverse educational backgrounds such as engineering,
commerce, healthcare, science, humanities and arts from various top universities and
institutes across the country such as IITs, DU, AIIMS. This not only helps foster the peer
learning culture which leads to overall development of the students, but it also gives the
potential recruiters varied options to choose the students based on their requirements of their
educational backgrounds and hence more and more companies want to recruit from such
campuses.

The last 2 years of IPM course were common with the PGP program, that is the flagship
program of IIM Indore and hence the IPM students were integrated to the PGP batch and
their course curriculum as well as the placements were common. This created the issue of a
sudden increase in the size of the outgoing batch that was looking for placement
opportunities. Due to this increase and not enough recruiters, the placements of that year
suffered.

The very concept of IPM ensured that the program was deprived of the two most critical
factors that could determine its success and this is why its students could not be considered at
par with that of its PGP program. The increased size of the outgoing batch added to its woes.
The brand name of IIM Indore, which was once at par with IIM Kozhikode suffered and IIM
Kozhikode moved ahead of IIM Indore in almost all the rankings and surveys. The students
were skeptical to choose IIM Indore due to the increased batch strength and suffering
placements.

IIM Indore being an organization decided to diversify and create a new course. Although
they were still in the business of management education with IPM, there was a significant
difference in the dynamics of both the programs and clubbing the programs together in this
way was a failure of the highest order. There was a need to understand and account for the
potential issues that could arise with the introduction as well as the execution of IPM.

Conclusion

IIM Indore has been most innovative and creative when it comes to make its brand IIM stand
out among various IIM operating in our country. Their unprecedented initiative to have an
overseas branch was also not very fruitful but a commendable step.

Their IPM has also come under a lot of criticism, the most vocal being downgrading of their
flagship PGP course. The IPM is their subsidiary course which was targeting unchartered
pool of students just completing their intermediate exam. The students have shown a good
interest in the course but the placement records have not been very impressive and their
placement session along with PGP students has not been very receptive among PGP
candidates and there has been considerable deterioration in preference for IIM Indore citing
excessive competition and large batch size.

With current state of affairs IIMI may further deteriorate its brand and newer IIMs to the
likes of Ranchi, Trichy, Raipur may replace it from its current higher ranking across India.
Economic Consideration of IPM- For student strength of 120 colleges has to have
arrangement for 600 students whereas for same strength in PGP infrastructure for 240
students would suffice, also the fee commanded for first years of IPM was much less than
that of PGP. But still the course fees for the first 3 years of IPM are almost double for a
Comparable UG degree in other colleges in India.

Way Forward

1. Discontinuing the IPM Programme-

This would essentially help maintain the current stature of PGP programme but the students
who have recently passed from this programme may face problem regarding credibility of
their course. This will also considerably trust over brand IIMI.

The infrastructure developed for IPM course can be used to gradually increase the strength of
PGP batch that will help to compete with older and well established IIMs.

2. Separating from flagship PGP course

This would totally ruin the credibility of IPM course among industry experts and would be
injustice to the students who have graduated in IPM. The IPM would lose its unique selling
point and would only invite substandard students.

3. Continuing Current Model

This is a risky proposition where IIM may be at receiving end and lose its current brand with
its reducing enthusiasm among MBA aspirants. With current model IIMI is also not
benefitting financially when we compare the revenue from PGP and IPM. With greater
acceptance among industry players the IPM may help distinguish IIMI among other IIMs.

4. Reducing intake

IPM is a novel idea among Indian Institute of Management and may be ahead of its time. The
optimum plan for IIM Indore may be to reduce strength of IPM. This will provide time to
IIM Indore improve and strengthen its 5 year curriculum. Once its 5 year programme become
time tested and gained trust of industry players IIMI would be in comfortable position to
increase its intake and distintinguish itself from older IIMs.

Meanwhile the current infrastructure may be utilized in gradually increasing PGP seats or
FPM seats. IIMI may promote similar course in newer IIMs for whom IIMI is acting as
mentor. Through this way most of the concerns of IIMI may be addressed and IIM Indore
may hold on to its unique distinguishing feature.
EXHIBIT 1

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