Is It Fair to Give Higher Designations Based on College Reputation Alone?

I had worked for one of the leading banks. They had a policy that some of the engineering graduates would be given a higher designation because their college was considered better. I also had an engineering degree with a very high percentage, and my college was equally good. The colleges they considered were not in the top 100 colleges of India, and the engineering graduates they hired from these colleges had very low percentages.

Is this the correct policy?

Dear Explorer2016,

Any policy of a business organization would be correct if it is not opposed to any law applicable to it. I do agree that it is the potential of a job aspirant that determines the degree of his employability and not his alma mater. However, when an employer adopts such a policy in the matter of fresh appointments, candidates with more employability like you would eventually leave in frustration, as you rightly did. So, no qualms about it now!

It is at management's discretion how they design the compensation structure, as long as it abides by all applicable laws.