Management Trainees Vs Ordinary Trainees

Our company has 2 schemes for Management students:
1.They have a list of B schools from where they take in Management Trainees on a specified CTC
2.Students from B schools other than the 4-5 specified in the list are taken on as Executive trainees on a much lower package.
Recently, we shortlisted a couple of students for Management Trainee position (HR) .The existing Executive trainees are feeling bad coz they have been working here for the past 4-5 months and now the MTs will join on a much higher CTC . This has brought down the motivation level of the existing Trainees who are very talented and have high potential.
Our HR Director is not willing to raise their salaries (the difference between the two levels is somewhere around 3.5 lacs pa).
What do you think can be done in this case?
a) to retain the talented people who ,though not from the specified institutes, are extremely hard working and smart.
b) to bring about a balance in the two schemes?
Kindly suggest.

Hello Dear,
Although you might not like my opinion but still i would like to tell you that as far as Institutes are concerned, getting MT's from prestigoius B-schools might not fulfill my norganizational needs. So my perception regarding this issue is that performance and salary should be justified on the basis of the workings and attitude of those trainess not on the basis that from where thay have persuaded their MBA.
Anant

Sambath,
The business is that of service sector and is a group company of a renowned anufacturing organization.We are located at Gurgaon.
Anant,
I partly agree.Salary should be purely performance oriented .Sure,a B school may give us our initial brand name but it should not be the only factor that decides the salary. But isnt it what actually happens in the corporate world? The name of the institute decides the initial package.
But how do you suggest we motivate the ordinary trainees who would be working on a pay well below that of the MTs in the same organisation.

Anant,
Imagine that you have to recruit an HR Executive for your organization and you have two resumes,lets say one of an IIM Bangalore grad and the other of an unlisted B School fresher...what would be your thought process and how would you go about the selection?

Even I believe that it is the person who matters and not from which business school he/she comes from.
However, if your boss insists on a difference in emoluments, then have a mid-point scale to which trainees from the lower grade can be promoted after three-six months if they show real potential and perform extremely well. This should act as a motivator.
Jeroo

Dear Sameera
By any chance your company has a scheme/policy on Management Trainee, Executive Trainee ,Engineer Trainee.
Grateful, if it is possible, to email me at [Login to view]
Rgds & Best wishes
tapas

I think that u should take an initiative to talk or discuss this critical differencial matter to your senoirs and try to make them understand that coming from EXCELLENT B-SCHOOLS is not enough,it's the qualities,interpersonal skills,dedication and hard work of the employees that matters which can profit the company.
Thanks
Nisha

Make different Career Paths for both type of Trainees...
HUL and Asian Paints are having such parallel Programs running successfully.

Dear Samaira,
You have shared one sided (personal) perception only. You have to look inward and discuss and understand motive of keeping this policy in place. Senior Management must have seen some advantages while formulating this policy and well considered such hiccups later.
Try to find out internally if organisation is achieving its objective (which could be only enhancing face value by having some names of premium B school....). If not don't worry keep enhancing your understanding on current scenario (without getting prejudiced), as senior director HR will sometime share his feedback with you on this sooner or later....