What is better: PhD in management or MBA?

Garima Upadhyay Rawat

Ever thought how an MBA would compare to a PhD in management? Read on to know what experts have to say about the two qualifications…

While management reigns as a popular choice among students, the question is whether it alone is the supreme qualification? An MBA degree today is the facilitator for many things: good designations, urban lifestyle, jobs to envy and grand money!

In a scenario like this, one is compelled to wonder what happened to good old qualifications like the PhD. Once considered supreme, today it loses sheen when compared with the likes of MBAs.

While on one hand it will not be fair to compare a PhD in management with an MBA since the former is a specialised doctorate degree that demands intensive research, and the latter is just a postgraduate degree. Also, a PhD is academically oriented while an MBA is an out-and-out commercial success formula.

A variety of factors differentiate the two, but, the prominent ones’ would be about the investment in each qualification, return on investment and avenues open. We spoke to some experts to get their point of view on this. Read on to find for yourself what will take you where…

Choosing between MBA and PhD in management

Easwar Krishna Iyer, director admissions, associate director marketing, Great Lakes Institute of Management: The choice between a PhD and MBA depends on what sort of career a student is planning to pursue. An MBA fits in to the career planning of almost all streams and helps progress in the career in corporate world. On the other hand teaching, consulting and research are the three avenues for which one might consider doing a PhD.

Dr Raj Agrawal, director centre for management education, All India Management Association: It depends on likes and dislikes of a candidate. Some have an inclination towards teaching and research and some have an inclination for a corporate career. One should choose their profession according to their skills, competencies and their interest in the profession. ROI alone should not be the only reason in selecting the profession.

Arks Srinivas, CEO, VistaMind, coaching institute for MBA entrances: PhD in management or (FPM from the IIMs) is a four-year programme which includes thesis submission and thesis defense. Unless the student is very clear on spending this time in academics, there is no point taking up the PhD programme. For either of the two qualifications, students should have done their graduation (any degree or engineering). However for a PhD, most institutes look for experience of 3 to 5 years too.

Avenues they open

Dr Raj Agrawal, director centre for management education, All India Management Association: PhD is usually perceived to be pursued for a career in academics and an MBA for a corporate career. But the line is becoming thinner and they complement each other now as professionals, both academic and corporate, are looking to enhance their skills as well as knowledge.     

Arks Srinivas, CEO, VistaMind: Students who do their PhD would typically get into teaching and research in various Business Schools. Some of the top professors get some consulting projects too. For an MBA, the avenues are available in all spheres of business like, Banks, PE funds, VC funds, Brokerages, NBFCs,  FMCG, Consumer Durable, Automobiles, All Manufacturing and Service industries. Even the new age companies such as Google, Facebook, Flipkart, Snapdeal, Jabong also offer employment avenues for MBAs.

For PhD, while some of the top Corporates could be the recruiters, the main stay for PhDs/FPMs are teaching jobs as Professors at B Schools.

Should you do both?

Arks Srinivas, CEO, VistaMind: A person keen on doing a PhD in Management may do well to do the MBA program too. However, almost all good PhD programs will include the basic MBA program in the first year of the programme.

Dr Raj Agrawal, director centre for management education, All India Management Association: Although MBAs and PhDs have their own standalone significance, in some cases they also complement each other. While an MBA, most specifically is the entry level qualification in corporate; a PhD after Post-Graduation, on the other hand is a qualification that is more often needed to serve the academics. However these days, many managers after completing an MBA also show an interest in academics and sign up for PhD programmes to enhance their capabilities.

Easwar Krishna Iyer, director admissions, associate director marketing, Great Lakes Institute of Management: Yes, if your career options / long term interests are aligned in the directions, doing both the qualifications can complement you well.

Time vs. Money: How much to invest?

Dr Raj Agrawal, director centre for management education, All India Management Association: It is not possible to quantify investments against each and do a comparative analysis, as the costs would vary due to various aspects. Investment depends on the type of institute/university further on issues like private /government organisation, PGDM and MBA Programme etc. On an average, an MBA takes two years, while to successfully complete a PhD one has to spend minimum three to five years.

Arks Srinivas, CEO, VistaMind: For a typical MBA from IIMs, the cost is close to Rs 14 lakh for two years. Most of the other institutes require investments between Rs 5 lakh to Rs 10 lakh for the two year programme. For PhD/FPM, either you are given a stipend per month (the Institute such as the IIMs pays the student!) or there may be no fees except for admission fees.

Easwar Krishna Iyer, director admissions, associate director marketing, Great Lakes Institute of Management: As far as investment goes for a PhD, there are no generic answers. Many schools would actually pay you for pursuing a doctoral program. In terms of number of years, in MBA space it is either 1 or 2 years whereas a good PhD could take anything between 3 to 5 years.

Return on Investment (ROI)

Dr Raj Agrawal, director centre for management education, All India Management Association: It is difficult to assess ROI from these programmes for similar reasons as outlined above. ROI varies considerably from organization to organization but current trend shows that MBA’s prefer more corporate jobs as compared to academics.

Arks Srinivas, CEO, VistaMind: ROI as a PhD will be infinite! As there is no monetary investment. However, the way to look at it is to understand what the student wants and therefore decide accordingly. 

Easwar Krishna Iyer, director admissions, associate director marketing, Great Lakes Institute of Management: MBA is a sure shot winner

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