Even if a huge number of management schools have opened in different parts of the country, MBA continues to charm a lot of youngsters who join it despite not being business graduates. For many, it is a ladder of success. But is MBA still as much fascinating as it once used to be a decade ago? finds out Akash Tomer of Elets News Network (ENN).
Other than the graduates from top 20 B-Schools of India, only seven percent Master of Business Administration (MBA) students from Indian business schools got jobs immediately after the completion of the course, according to an ASSOCHAM report.
Similarly, in 2016-17, more than half of MBA graduates could not get hired in campus placements, says the data by All India Council for Technical Education (AICTE) shows.
The above data is sufficient enough for students to determine whether pursue an MBA/other business courses or not. Moreover, the present economical conditions and job crunch across the globe is also a big reason of worry for students to check if investing a huge amount in MBA is still beneficial or not?
Economic liberalisation in 1991 in India started unshackling the private sector leading to a growth in demand for business managers. Companies were willing to pay a handsome amount to this new breed of executives who seemed capable of putting family-held or other traditional businesses on fast track. MBA became a sought after career among the youth.
But, nowadays, with industries transforming at a rapid rate, it is important to figure out that is there any scope left for MBA graduates in coming years or a new course aligned with the latest industry-trends is needed. It has become fashionable of late to cast doubt on the merits of getting an MBA degree, especially one from a two-year programme that costs well into the six figures. Yet, there has been no shortage of applicants to any of the most highly selective schools that routinely reject the vast majority of candidates who apply to them.
So what are the key reasons that influence people to still dream of having an MBA degree?
The Association of International Graduate Admissions Consultants (AIGAC) released its annual survey on MBA/business courses applicants who had quite a bit to say about this question. 1,377 candidates who have recently applied to at least one business school responded to the web-based survey.
Majority of the people think that top reason for a student to pursue an MBA is good salary and a good position in an organisation.
The perception is erroneous, as MBA aspirants do not consider the degree as a way to make more money and achieve great status. There are various other factors that motivate most of the candidates who invest in any such programme to get a globally competitive business management degree.
As per the survey, desire to acquire new skills and knowledge about business was at the top of the list, cited by 57 percent of the prospective students. Second on the list, cited by 49% of the respondents, was access to job prospects, including the opportunity to transition into a new career, with the degree. Not far behind was access to a strong network and the opportunity to advance a career within the same industry (both checked off by 48% of the sample).
In addition to that the business courses across the globe have some unique features which make it one of the most sought after programmes in higher education.
Cut-throat competition is a reality and to lead others in this competition, it is necessary that a candidate has unique set of skills and knowledge in his/her respective domain. Business courses being well linked with industry offers such set of skills to every candidate pursuing them.
There is an increased specialisation of careers in the service sector. This has led to emergence of specialised subjects in which students can pursue courses in business administration/ management. Through subjects such as finance or marketing, candidates will not only learn the basics of business, but also be able to create a niche for themselves. Students can look for the availability of a course as per their interest in best B-schools of India online or through appearing for their entrance exams, if any.
Better Pay and Scope for Promotions
Pursuing a course such as MBA, PGDM or PGPM may change the direction of one’s career. It is an added academic achievement, which may increase the likelihood of getting a raise and promotion. It may also open up opportunities for jobs that one was not eligible for before because of its orientation towards leadership and team- building.
Startup India and other initiatives have made the Indian economy conducive to the establishment and growth of businesses. The curriculum of a business course inculcates the capability of differentiating between a good and bad business strategy. Candidates will learn how to give their business a global outreach, how to adopt techniques to attract external funding, and how to hire the best minds in the job market.
Having an MBA on CV may translate into job security because one will still be able to find a job even if your business does not perform favourably.
Emerging economies are proving to be fertile ground for MBA graduates because it is easier to navigate unstructured markets with a structured mind. Companies are constantly looking to expand in such economies, and they need professionals trained in business and management to give direction to their growth. The increase in domestic and foreign demand coupled with expansion in finance, real estate, education and investments are expected to cause a surge in India’s growth story, and a business degree is best designed to take advantage of it.