Enhanced pay for IIM faculty – Review Panel
A high-level committee that reviewed performance of the premier Indian Institutes of Management (IIMs) has called for increasing salaries and incentives for faculty members and hiring on contract basis to counter shortage of teachers, especially in the functional disciplines.
“Ideally, board of governors should determine the remuneration of the IIM staff taking into consideration market conditions to attract, retain high quality talent and provide motivation for performance,” the IIM review committee, headed by Maruti Suzuki India Limited chairman R C Bhargava, said in its report submitted to the Union HRD ministry on Friday.
“The Board should also periodically review the compensation packages, taking changes in the environment into account.”
While the IIMs have been able to attract and retain faculty for basic disciplines, there is acute shortage of teaching staff who can handle functional disciplines like finance, marketing and organization behaviour in post-graduate programmes. “If the government permits, a higher level of base salaries can be fixed for faculty in the functional areas,” the report said.
The panel has suggested that all IIMs should have some degree of uniformity in remuneration packages, with adjustments being made for local conditions. “However, for various reasons, this isn’t practical in the IIMs and the basic salary structure would have to be that notified by the government on the basis of the Pay Commission report,” it said.
At the same time, the panel recommended that the system of “overtime” be discontinued.
Advocating a ‘hire and fire’ recruitment policy, the Bhargava committee has recommended that market-oriented salaries can be paid to faculty, who are appointed on a contract basis of five years or more, with a clause for terminating their services if they are not up to the mark.
“Taking into account the attractiveness of an academic environment, the contract amount could be around 70% of the market wages for persons with similar qualification, experience and capabilities. Earnings for such faculty from executive training programmes or consultancy assignments should be limited to around 15% of the contract amount,” the report said.
The committee has also come up with suggestions for making the best use of the limited faculty talent in functional areas. Besides, it has recommended that the faculty be relieved of administrative responsibilities which is currently interrupting their teaching hours and instead appoint a full time dean (administration) to care of logistical and paper work.
Source : Times of India