The Relevance of an MBA

A lot of debate is currently on regarding the relevance of the MBA programme. Some argue that MBA has lost its sheen as MBA graduates are finding it difficult to get suitable jobs. While there are others who feel that MBA has always been relevant and will remain so in future as the education we take is for our life long careers and its scope is not limited to just the first job as a fresher. Students, who are in their final year of graduation and planning for an appropriate PG programme must be in a dilemma as to whether to opt for an MBA programme or not. This article makes a brief but specific analysis of the MBA programme and its significance in the current economic scenario.

MBA is a post graduate programme in business related disciplines. It first became popular as an academic programme in the USA, where the premium universities like Harvard, Stanford, and Yale etc. started this program apparently to prepare students for the business world. The programme, slowly, gained worldwide popularity and has now become a coveted degree. It is a programme in which the academic subjects are chosen from various disciplines, keeping in mind their relevance for the business world. The MBA programme aims at providing structured and interdisciplinary education, which has relevance in the real world of business. 

The turbulent economy and hyper competition are making businesses more and more complex. The amazing growth of technology and its utilities have sped up the processes. Change has become a norm and speed is becoming a custom. Managing complexities of the business, adopting changes, maintaining speed with accuracy, environmental concerns, business ethics, corporate governance, team building, mentoring and leadership, visualizing future, etc. are some of the issues which figure prominently in the boardroom meetings. Then there are functional issues like Marketing, Finance & Accounting, Human Resource Management, Information Technology, Operations, etc. These issues can be sorted out by human beings only and companies are constantly in search of competent people who can address these issues effectively.

Where will this competence come from? I have identified three sources from which manpower gets trained and can become competent to address the core issues of business.

• One, in family owned businesses, the elders in the family coach and mentor the younger lot in an informal but continuous process, and thus prepares them for the business world.
• Two, an individual can learn and become competent through his own experience of working with an organization.
• The third source is the MBA programme, which is taken up by the students to learn the nuances of the business world to attain competence and develop the skill sets that are required for managing businesses.

The first source is normally unorganized and unstructured in nature and the learning is limited to the knowledge and understanding of the elders in the family, which may not be necessarily comprehensive. The scope of the second source is limited to the domain work of an employee and may not have multidisciplinary approach and enterprise wide outlook. The third source, i.e., the MBA programme, promises a well-structured and comprehensive learning with a fair degree of standardization. 

The MBA programme has an interdisciplinary approach and an enterprise wide outlook. The MBA programme is a fine combination of Theory, Practice and Research dimensions. It not only focuses on delivery of knowledge, but also focuses on skill development and attitudinal issues. MBA aims at widening horizons and broadening visions. It has the capacity to change paradigms and enhance thought processes.

Various industries and corporations acknowledge the importance of MBA. Many of them insist on a formal management qualification in the resume before recruiting candidates, irrespective of the domain area of work.  Many non MBA employees, though at good positions and good performers, have also understood the importance of formal management education and qualification and feel that not having a formal management education can hamper their promotions and future growth prospects. This is the reason why one finds the Executive MBA programmes packed to capacity.

Many candidates relate the programme of MBA to a good first placement, which may not be always possible. The MBA degree can act as a tool to make a good long term sustainable career but not as an instrument of getting a good first job at a fabulous salary package. Though some fresh MBA graduates may receive fabulous offers, some others might be required to struggle for a few years before they can really harvest the benefits of their MBA degree.

The MBA programme, or any formal management education, is best taken up in a campus based programme rather than distance learning mode. Management education is not just about reading books and appearing for exams. It is a comprehensive programme which calls for high degree of Faculty-Student interaction, working on various Projects, Peer Learning and a varied Industry Interface. All this may not be possible in distance learning mode. 

As long as businesses exist on the face of this earth, the need for trained, competent and efficient manpower will remain. This is where a career opportunity lies. Formal management education (say MBA) is the key source of providing such manpower in quality and quantity. So gear up, pull your sleeves, and start preparing to get the best possible management education available. Happy Innings!

About the Author:

Dr Makarand Arun Joshi is an Associate Professor for Marketing and Business Strategy and HOD - School of Management, Ajeenkya DY Patil University, Pune.