A tremendous rise in the number of educational institutions has led to the emergence of a highly competitive environment in the field of higher education. Educational institutions are not only competing in terms of acquiring new students but huge efforts are also required in retaining quality faculty. To meet with such challenges, organizations are fast adoptinga marketing-like approach, which means treating students as external customers of the organization and faculty as internal customers of the organization. Educational institutions are compelled to function as business houses and adopt marketing practices. With respect to such an emerging scenario, it needs to be examined that whether or not, educational institutions are treating their employees as their customers and if they are able to design employee services accordingly. Human Resource practices adopted by educational institutions need to be redesigned, rebottled and repackaged by keeping in mind internal customer-orientation. It needs to be assessed whether or not the services offered to the faculty are catering to theirlevel of expectation and whether it is able to generate a positive perception in their mindsabout being offered quality services There are a number of personal and professional factors contributing to the determination of the level of satisfaction of faculty; there is a strong need to assess the extent to which internal marketing practices influence the level of satisfaction. The present paper analyses the perception of faculty members towards internal marketing practices adopted by the Business Schools (B-Schools) and attempts to identify the factor structure determining their perceptions.