Rethinking the MBA
Posted on May 5, 2010 | Author: Srikant Datar | View 791 | Comment : 28
Immediately after graduation, a significant majority of the graduates of the leading two-year, full-time MBA programs take jobs in financial services and consulting, driven in part by financial rewards that make it very difficult for companies in other sectors to compete for graduates.
The problem for the higher-ranking business schools is that there are a number of forces at work that threaten to undermine or reduce the opportunities for employment in financial services and consulting.
Postcrisis, many lucrative jobs in financial services, and to a lesser extent in consulting, have simply disappeared. Each day brings new reports of hedge fund closings and the scaling back of private equity investments.
Not surprisingly, the enormously high compensation packages in these fields are shrinking as well, making jobs in these sectors far less attractive. These changes threaten one of the key selling points of the top US business schools.
A further challenge comes from the fact that companies in these industries have increasingly been promoting from within. In part, this is because technical work, such as sales and trading, now contributes a large share of the firm's profits relative to activities such as investment banking.
Consequently, many companies are actively discouraging their best young people from leaving lower-level positions for business school, arguing that their odds of success are actually better if they stay at the firm.
Comment
Comments (28)
- No education is ever a waste, it is always useful in one or the the other form provided it is put into proper and positive use.
Posted by Harish Kumar | 13 May, 2010
- As far as I am concerned any education should make a person to be a better human being to live in this earth either to earn money or to service for a firm could be for society. So MBA education schools or person who are going for MBA need not bother about these scenoria. Now it may be like this, but it could be different in near future
Posted by Punithavathi Navaneethakrishnan,Head of Computer Engineering Department at GRG Polytechnic College|13 May, 2010
- India is the dreamland of the people who wants nothing or very little gets gone so that work becomes 90% unemplyment leaisure doles. So, managers who are responsible for getting thind done should not be MBAs. Management education is not merely about getting work done as is sometimes thought. Management education gives a person an opportunity to become a complete hunman being to acuire values, become honest, love people, sharpen minds, identify and define problems with clarity, solving problems systematically, measuring and quatifying risk, taking prudent decisions, understanding the environment, anmticipate future, develop and motivate people. become effective communicators and leaders, etc. Management education has not diversted resources away from management but has helped improvement ...See More
Posted by Basudeb Sen | 09 May, 2010
- Mr Pushkar is perfectly correct, the maapdand should be deliverance and not fat paychecks and bonuses.Then only all will prosper the Company, Country, Individuals(CCI), and now only individuals were prospering which was hurting the Company and the Management.
Posted by PRADEEP AGARWAL , HOF(W) at ACIL | 09 May, 2010
- One of the reason of recent meltdown was the outcome of a defective remuneration model based largely on human greed. The financial crisis of 2008 exposed the immorality of this business school model. Alumni’s unashamedly and recklessly paid themselves outrageous remunerations while running their companies to the ground. As long as Business Schools rate their success not by the excellence of their education and quality of ethical values but by the size of the pay checks of their alumni, failures of such magnitudes will torment the world. It is time to re-examine such business school model and its value system and realign its ethical context with the psychological, aspirational and spiritual needs of the students to reinforce their inner values and beliefs rather than fuelling excessive ...See More
Posted by Pushkar Raj Chandna,CEO & MD at YASHAD CONSULTANCY PVT. LTD.|09 May, 2010
- MBA boom has always been the major cause for diverting people from the need of management education. This education had simply been introduced to get the work done by management and objectives.
Posted by Aniruddha Palshikar | 09 May, 2010
- Dear Editor,
If by mistake the name has been wrongly written, doen\'t your site check it and correct it
Posted by PRADEEP AGARWAL , HOF(W) at ACIL | 09 May, 2010
- I must say I do not agree with the statement that the MBA is losing it\'s appeal, because I also left my second Job after University, in a local company, Nile Breweries, to pursue a Master\'s degree in Public Administration and Management. The benefit\'s of further Education are tremendous. Apart from greater pay, one can lecture at Local Universitie\'s, Start a private consultancy, work for International Organisation\'s Like the UN or World Bank, or be promoted, within the very company,he or she may be working in. The benefit\'s in term\'s of knowledge are so tremendous, they encourage Personal growth, and self actualisation, since core unit\'s like International Business, Accounting, Financial Management, Environmental Management, Project Planning & Management, or The Theory of ...See More
Posted by John Wakhweya , General Manager at Apex Tankers | 09 May, 2010
- I must say I do not agree with the statement that the MBA is losing it's appeal, because I also left my second Job after University, in a local company, Nile Breweries, to pursue a Master's degree in Public Administration and Management. The benefit's of further Education are tremendous. Apart from greater pay, one can lecture at Local Universitie's, Start a private consultancy, work for International Organisation's Like the UN or World Bank, or be promoted, within the very company,he or she may be working in. The benefit's in term's of knowledge are so tremendous, they encourage Personal growth, and self actualisation, since core unit's like International Business, Accounting, Financial Management, Environmental Management, Project Planning & Management, or The Theory of Organisation & ...See More
Posted by John Wakhweya , General Manager at Apex Tankers | 09 May, 2010
- Dear Mr SEN,
I want your mail ID
Regards,
PRADEEP AGARWAL
Posted by PRADEEP AGARWAL , HOF(W) at ACIL | 08 May, 2010
- Casteism is very common to human beings: so MBA(Finance) will think themselves agreat class as do the Chartered Accountants or the IIT Engineers or the IASs. But everyone knows atht all MBAs are not the same and that applies to CAs, IIT engineers and IAS officers. And, we also know that MBAs as a group are different than CAs or IASs. But the real test in actual work situation. MBA (f)s fly away because they get oppotunities to go elsewhere.
Posted by Basudeb Sen | 08 May, 2010
- THOUGH MBA(F) ARE OUR COUNTERPARTS, WHAT I PERSONALLY FOUND IN MBA FROM WHEREVER, THEY THINK THEMSELVES AS CLASS APART, FURTHER, TO BE FRANK ENOUGH THEY DO HAVE TALENT & HAVE PRESENTATION SKILLS BUT SADLY LACKS FINISHING TOUCHES. THE MANAGEMENT DAY DREAMS ON ASSURANCES FROM MBA'S BUT WHEN THE TIME COMES FOR COMPLETION THEY MOVE TOWARDS A NEW JOB LEAVING MANAGEMENT IN SHAMBLES AND PROJECTS INCOMPLETE AND ON THE DRAWING BOARDS SO THE FAITH OF THE MANAGEMENT GETS SHATTERED DUE TO THIS AND THIS HAPPENS EVERY WHERE, SO MY MBA FRIENDS/COLLEGUES SHOULD DO INTROSPECTION WHY IT IS HAPPENING SO
Posted by PRADEEO AGARWAL , HOF(W) at ACIL | 07 May, 2010
- The IIM candidates get better price because of the veneer of `Ivy League\' instituions. And the astronomical sums as compensation is more for the brand of IIMs, less for the candidates-- a superstitious attitude that only IIM label can command a fancy price. The `dream salaries\' are a vogue only with the creamy layers of the IIM talent. Canidates from Non- IIM buisness schools of lesser brand value are shortchanged because of this mindset. To quote Mr Areun Maira, a respected analyst-consultant and a member of the Planning Commission had once said `the employability quotient of the business school students is only 50 per cent or less\". They would need speical on job training adding to the costs of acqusition of talent. This raises the qustion whether such a costly exercise is ...See More
Posted by Varadarajan. V.K. , Deputy Editor at THe Hindu Buisness Line | 07 May, 2010
- Low quality management education by run of the mill management schools is indeed a reason for the lower remuneration packages for such MBAs. They are not as much worth as they were thought : experience of industries employing such MBs shows that their productivity, skills and contribution do not justify high salaries just after graduation.
An ordinary Bcom or science graduate cannot hope to get into IIMs or the beetter management schools. They cannot hope to get such compensation as the IIM graduates do. The lower ranked schools produce lower quality MBAs who can get into smaller and lower ranked companies who can only pay lower salaries.
Posted by Basudeb Sen | 07 May, 2010
- MBA boom has always been the major cause for diverting people from the need of management education. This education had simply been introduced to get the work done by management and objectives. India has top grade business schools like IIMs, other B-schools are also there which are competitive internaionally also. The best qualifiers are always able to demand the best salaries. But it is necessary that everbody should be aware what being competitive is. This education can be made in vogue only if it is not for everybody.
Posted by Ruma Agwekar,Proprietor at Petals|06 May, 2010
- There is boom period for every (professional) course and after few years it becomes steady. The reasons are various. The saturation in the job market, availability of the alternative qualifications at more reasonable salary (which has resulted in the shrinking of the pay- package), too many youngsters joining the services, which indirectly refers to the scarcity if jobs for quite somne time etc. Same has happened with the MBA courses. Not only this but the mushrooming of the MBA institutes, whether approved by AICTE or not has also contributed to the problem. Also, the PGDM and PGDBM along with the courses like DFM etc. have come back, which have further divided the opportunities. As per my knoiwledge, we can observe the issues related to MBA in this perspective.
Posted by Anima Sharma,Asst. Professor at Corporate Group of Companies|06 May, 2010
- M.B.A needs to be renamed as Master of Business Achievers, paving the way for creation of Managerial Revolution in the future, not merely asking what- is- in- it- for- me?,but trying ways and means of creating an environment ,wherein,one should not only be in a position to add value to the place of work but also think of Society at large.Achieving societies are full of Achievers NOT people Waiting to Receive .Let us be Originators not Parasites.
M.B.A is only a means and NOT an end in itself.Let us not kill the means by thinking of the end End ,no doubt,end is important.But NOT that important to sacrifice the means .Doing an M.B.A course will bring an awareness in a person about his/her Self-efficacy through Self-introspection and make a manager out of a human being with humane ...See More
Posted by N.S.Srinivasan , Facilitator-Academics at GEMS B School,Saidapet,Chennai | 06 May, 2010
- MBA always remain the most lucrative profession and sought after Qualification for young and bright graduates.
In 2010 we recover from recession and look forward to global recovery and great job prospects.
IIM graduates still find way in big consultancy firm and do good job.
Posted by Susanta Majumdar,British Council Library Member(ECL78122), American Library Member(C920537),Proprietor self occupied at Not Applicable|06 May, 2010
In purely Indian context, I am of the opinion that our overall perspective to education needs a relook. What is happenning is that we are creating Babus instead of thinking innovators in their respective choosen field. This also applies to an MBA degree which today has replaced a simple graduation degree of a generation ago. With mushrooming of private institutes everbody has an easy acess to an MBA programmes.
From the employers perspective, it becomes emparative to look beyond the education provided by a 2 year full time MBA course, and other factors take over. I know of cases of fresh MBA being offerred a job of selling Demat accounts, credit cards and so on.
Cheers,
Posted by Neeraj Prakash,|06 May, 2010
- Skills is where the focus lays irrespective of the degree. Not all B schools are churning out non-employable MBAs and neither are all fresh grads prepared and equipped to be hired. Using the finance jargon its probably time for correction in the education scene as well and institutes providing a curriculum and aided with faculty members who are able to provide genuine broadening of the knowledge horizon and required skills will be able to sustain while other ill-equipped institutes may have to either upgrade their offerings or wrap-up.
MBA is a program will continue to get its due but probably only those who hold an aptitude and attitude to business and management. Its gonna be a great service to the discipline if only academic oriented institutions with a good industry ...See More
Posted by Ruchi | 06 May, 2010
- It is not dwindling pay package ,It is the mushroom growth commercial educational institutes which has resulted in enormous supply of inferior quality of MBA.'s inhuge supply, who could not take the industry forward that has resulted in this downward for MBA.s
Posted by venkataramanan thiru,|06 May, 2010
- MBA in my view, is only a qualification to enter into an organization and fare well in their selection / filtering process and to stand out from others. This in no way helps the organization better than any other normal graduates with good common sense. As I can see from comments from other Peer Members, there are so many other normal graduates earning better than the MBA graduates. Earning an MBA is not enough, they should have good common sense and decision making abilities. I have seen MBAs asking others to do their CVs as they dont trust in themselves.
Posted by Puthan Pradeep,Regional Cards Personalization Officer at HSBC - Hongkong & Shanghai Banking Corporation Ltd|06 May, 2010
- Investmentment in obtaining a two year MBA program is not a risk-less activity. The commercial attractiveness of an MBA program depends on the direct costs of tution fees and living expenses for the program and the opportunity cost of not earning during the two years. The direct costs have significasntly increased but the opportunity cost has not increase much, if at all. This should reduce the commercial attractiveness ( increased the paback period or reduced the internal rate of return) even if the compensation packages had remained the same. But the compensation packsges have fallen. So the payback period has increased and the Internal rate of retorn on MBA investment has declined. But that does not mean that the demand for MBA degrees will go down at all: it may increase. Because ...See More
Posted by Basudeb Sen | 05 May, 2010
- MBA degree is like a golden crown which every one would like to wear and RULE! Ofcourse, MBA is a golden crown as it is very expensive! The expense depends the type and the nature of the CROWN and who "made" it. Just because ONE wears crown he cannot be a KING!, Even if he is a king, there is assurance that he can rule and rule well! Ultimately the CROWN IS only symbolic and he rules is
decided by the intrinsic "worth" of the person who wears the "CROWN". The crown can help in his acceptability to the ":subjects" he intends to rule! It can be a SYMBOL which helps in his being identified as a potential RULER in a corporate world, but ultimately CROWN would not determine the quality of the RULE. AN MBA HELPS A POTENTIAL MANAGER AND WHETHER IT HELPS THE CORPORATE EMPIRE HE ...See More
Posted by M.K.SREEDHAR , Assitant Commissioner of I T (R) at Ministry of Finance,GOI | 05 May, 2010
- In my view our country needs more doctors than MBAs. Our youth should realise that most of our population is still uneducated and proper medical consultation is not available in villages. We need double the medical institutions immediately and increase the number of doctors to make available easily to the public.
Posted by Kailash Jain,Chartered Accountants at Kailash Jain & Co.,|05 May, 2010
- Dear Sirs, This is regarding re-thinking MBA. I disagree. It is not your graduation and subsequent MBA which gives you a highly paid job. What is required from a young MBA is clarity in his concept, defined goals, love for the job you are doing, loyalty to the Company/organization you serve, leadership quality to go to the highest corporate seat and above all faith and confidence in yourself. I am sure many would agree with me. Good times of companies and bad time of organizations have no role on this.
Posted by Harish Kumar | 05 May, 2010
- I have been graduated as an MBA(finance) since Jan2007, I tried every where t get a MBA job but in vain, I am sorry to say that even I cant get a job in a call centre of any bank. For me MBA and my postgraduate diploma is just a piece of paper nothing else. I am family man and I spent a lot on my studies but all went into a bin!!!!no job. I believe that If all comoanies want a MBA from top 5 universities than please closed all the universities across the country , The other universities making money out of us. There is no scop of any MBA. People who have no degree earningbetter than MBAs. Please dont put peopel on day dreaming , you have to admitt that there is no space for any MBA.
Posted by Muhammed Shabbir Aslam | 05 May, 2010
-
Being a Mechanical Engineer and having a Masters in Management and having served a company for 26 years in different capacity in almost all kind of functions, has enabled me to make a basic statement and that is, \"Your knowledge of subject certainly helps you in differentiating between a good and a bad decision, but ultimately leaves it to other dynamic parameters for the outcome.\" There is no doubt that hardly 10% of your knowledge is put to use.
The remuneration package offered to freshers often do not reflect the responsibilities they will be assigned and sometimes really do not justify the same. What may look lucrative today may lead to a sense of dissapointment after the real essence of the work content is understood.
...See More
Posted by A.Sanyal , DGM at BHEL | 05 May, 2010
|
Fiscal lessons from the eurozone
The FRBM target of lowering the fiscal deficit to 3% of GDP is sensible in good times, leaving scope..
Swaminathan S Anklesaria Aiyar
Read full story 
|
 |
Compliance comes calling
With the US chasing breakers of Foreign Corrupt Practices Act, Indian firms could get a large liabil..
A Martin & S Bhandari
Read full story
|
Vithalc Nadkarni
In his Sutras, Patanjali sets forth Yama and Niyama as the first and second of the eight limbs of yo..
Delink ownership and operations Yes, PSUs should be separated from their administrative ministries. Post-1991, PSUs were exposed to .. Jagdish Khattar
CMD Carnation Auto
Change in mindset is the answer PSUs should not be separated from administrative ministries since complete separation may lead to co.. U D Choubey
Director General Scope
About Us | Terms & Conditions | Contact Us
Copyright © PeerPower.com 2010. All rights reserved.
powered by 