How IIMs' functioning will change

The IIM Bill, passed by Rajya Sabha, gives B-schools autonomy and power to award full-fledged degrees

Registration
Pre IIM-Act
Registered under the Societies Registration Act
Post IIM-Act
To be registered under an IIM Act of the Parliament
 

Board
Pre IIM-Act
After a government nod under the UPA regime in 2012 for a modified Memorandum of Association (MoA), some of the older IIMs were empowered to trim the board size from over 26 to 14, appoint alumni members on the board, and decide the pay structure of staff and faculty independent of pay commissions
- Of the roughly 15 members, most of the IIMs had two members each as state and central government representatives
Post IIM-Act

All IIMs now get a 19-member Board of Governors, including 1 chairperson; 4 eminent persons from education, industry, commerce, social service or public administration; 1 SC/ST nominee; 5 alumni/society representatives; 3 women members (if three women members are not there otherwise); 2 faculty representatives; 1 central govt nominee; 1 state govt nominee; and 1 director as ex-officio member
- Now, state and central representation reduced to one member each, paving way for alumni, women and eminent persons
 
Appointments
Pre IIM-Act
Barring a few older IIMs, for most of the IIMs MHRD directly appointed the chairman of the board
- Chairman's tenure was 5 years

- Barring a few older IIMs, for most of the IIMs MHRD directly appointed the director. Some of the older IIMs have autonomy to set up a search committee but eventually have to send a shortlist of three names to MHRD, which makes the final appointment
Post IIM-Act
IIMs' boards will now have sole authority to search and appoint a chairman. MHRD's say will be there in form of a board representative
- Chairman's tenure is 4 years
- Boards of all IIMs will now have the autonomy to set up their search committees and appoint directors as well as fix remuneration

 
Expansion Plans
Pre IIM-Act
IIMs, especially the newer ones, are subject to MHRD for expansion of campuses into other territories
Post IIM-Act
The board will decide on campus expansions
 
Advisory Body
Pre IIM-Act
Unlike a formal and decisive body of IIT Council, IIM directors meet informally at least once or twice a year to discuss and share ideas for governance and academics
Post IIM-Act
A 30-member Coordination Forum will be formed. It will be headed by an eminent person, apart from one MHRD representative, 2 state secretaries by rotation for one year, 4 chairpersons of IIMs by rotation for 2 years, all IIM directors; and 5 eminent persons including one woman

 
Academic Decisions
Pre IIM-Act
Boards of IIMs autonomously decide on starting a new programme or revision of fee
Post IIM-Act
While not much changes here, IIMs may have to inform MHRD on such decisions
 
What IIM Directors are saying

 Ajit Prasad, IIM Lucknow

This is a step closer to granting the degree to the students. Expansion of board to include eminent persons and alumni is much appreciated.

Kulbhushan Balooni, IIM Kozhikode

This is great news and the Bill moves us to achieve global levels of excellence. The functional autonomy empowers us to expedite and compete with the international institutes.

Saibal Chattopadhyay, IIM Calcutta

There is not much that we will have to change in academic activity . What is registered under the IIM Society will now be under an act of the Parliament. And we will be offering MBA and PhDs instead of PGDMs and fellow programmes.

G Raghuram, Director, IIM Bangalore

Not just the full autonomy of appointing the chairperson as well as the director but now also the power to review the performance of the institutes vests with the Board. This will help the IIMs to shape better long-term goals.

Janat Shah, IIM Udaipur

The Bill grants greater autonomy in governance. There is a lot of dependence that IIMs, especially newer ones, had on the government which has been removed.