A recent article in a news papers caught my eye . An MBA doesn’t mean big money, graduates of 37% of schools start at Rs 3 lakh: Report – The Economic Times
The article effectively states what I have actually believed. Doing an MBA is no longer a big deal in India. What is now more crtitical is where you do that MBA from.
MBA at one time was the portal to big bucks at hallowed companies. It no longer is so now. The reason is that in the last decade two things happened to MBA education in India-
1. A large number of MBA schools mushroomed driven primarily by the fact that MBA colleges require less infrastructure and are easy to set up
2. The number of seats at most existing schools doubled.
Thus there were new schools trying to get employers to come but on the other hand there were these top schools trying to place larger batches. Thus the trickle down effect of say the top 5% jobs was limited as any increase in hiring got adjusted through the increased batch sizes at top business schools.
MBA at most b-schools in India got extremely expensive post 2008 driven primarily by private schools realizing they could charge more post ISB showing the way and the government counterparts looking at financial autonomy. Thus today a 1 year MBA costs 26 lakhs at ISB, 15-20 lakhs at the IIMs/XLRI.
The exception is FMS which at 10 k is possibly the only place where a top rated b-school gives an MBA for literally nothing. Of course FMS has its own issues but I had made a choice between FMS and IIML and I still stand by that decision. That however is a story for another day.
Back to MBA with the focus on acads , many MBA aspirants forget that while they could get admission to a b-school where do they stand with respect to their cohort. Not all MBA schools are made equal and within an MBA school not all graduates are equal. This difference will show up again and again. The same company will offer different profiles at different business schools paying very differently. This also is perhaps a fact that most people forget,
A secular trend visisble is that entry level jobs are seeing more qualified people. My own medical reps who just need a simple graduation degree are often MBA’s. That they become MRs is a testament to both the potential of an MR job as well as the bleak job market.
What we need therefore is more awareness of business school’s potential to place their students in rewarding career after having given a substantial value add. Missing that students will continue to be misled and schools unable to handle expectations.
And more MBA schools at the bottom will shut shop.