Is studying an MBA a good investment?

Is studying an MBA a good investment?

Fees are high, and the work is demanding - but it's a course employers really value.

An MBA indicates that one has mastered a certain level of knowledge in business management, which gives them the ability to deal with the pressures of the industry and interact with top professionals and executives on business-related issues. In recent years, there has been a sudden spurt in the number of institutes offering MBA programs. Apart from the competition intensifying among MBA grads, this has also resulted in business schools cashing in on the ‘MBA wave’ in the country, with many offering ‘100 per cent placement’. The reality, however, is that many of these institutes have poor infrastructure, and faculty who lack practical knowledge.

A slowing economy has compounded the problems of MBA graduates. It is not that there is no requirement of managerial personnel in the Indian economy. But not for all the over two lakh managers who graduate from the thousands of institutions every year. The economy is not doing well and there is no new investment.

The MBA schools are trying to teach students like it is an engineering course, in a very regimented manner. They treat the text book like a Bible! Their industry interaction is very bad and most of them graduate solely with textbook knowledge rather than case studies and discussions. Because of this, they are not prepared at all for the demands of the industry. Industry does not hire such students, definitely not for important posts.

A joint survey recently done by Development Dimensions International (DDI), a global talent management firm, along with The Conference Board, a non-profit business membership and research group, to check the preparedness of companies in India to meet the business challenges associated with global expansion, does not present a good picture.

The report includes responses from 836 leaders, 244 human resource executives in India. A shocking 39 per cent of HR professionals reported that leaders in their organisation are slightly or not at all prepared to handle human capital related challenges which include retaining and developing talent, managing complexity, leading change, leading with integrity and having an entrepreneurial mind-set. Only 31 per cent of Indian organisations are prepared to meet the business challenges which include customer relationships, innovation, operational excellence, corporate brand and reputation, global expansion, among others, as the country witnesses not much of an improvement in the quality of leadership.

It is seen that often, people coming from business schools think they have superior degrees, but many are not aware of the leadership skills that are required for the job. They are not able to effectively interact with others in the corporate environment; they don't know what kind of leadership skills is required when they get on to the job.

To address this issue, firms like DDI prepare graduates to be corporate-ready, and help them deal with the high pressure of a job in the corporate sector. There is an increasing demand to build campus-to-corporate relationships, with more and more organisations specifically investing in such programmes. Depending on their needs, each organisation decides what kind of leaders at a particular level they would require. Work is done accordingly to groom the graduates.

Giving further insight into the kind of work that they do at DDI: First, look at the learning orientation — is this person ready to learn. Then whether the person is really inquisitive about different things that an organisation has to offer.  Train them on the basic leadership skills that are required at the entry level. Whether interacting with team members or preparing for corporate meetings, there are a few things that management trainees who will soon become young leaders, need to focus on.”

There is much brighter placement season in 2016, compared to 2015. The recovery of the industrial and manufacturing sectors would happen in the third quarter of this year, which is the most crucial point for recruitment. Though actual investments are yet to pick up, there is euphoria, there is hope, and there are expectations at the moment.

What kind of MBA is right for me?

A variety of MBA programs, from full-time cohort options to EMBAs and online MBAs, cater to a range of needs

If you’ve decided to return to school for business, you’ll want to choose the program that best fits your career goals, experience, and the amount of time you want to put in. The classic two-year MBA is not the only option: schools offer plenty of different MBA programs based on your level of work experience, your geographical distance from the program and the amount of time you are able to devote to the program.

Full-time MBA

The full-time MBA is geared towards candidates with two to seven years of work experience, and usually requires students to quit their jobs and devote themselves completely to studying. In the United States, full-time MBA programs typically last for two years, although a growing number of US-based business schools are offering accelerated, one-year MBA programs.

Two-year, full-time MBA programs typically facilitate networking at the beginning of the first year by assigning students to cohorts who take the core classes together. Other schools call this the cluster system, while still others assign students to study groups with four to six other people.

Some full-time MBA programs require students to complete a summer internship between the two years of studying; sometimes, this internship will turn into a job for students after they graduate.

The second year of a full-time MBA program is often dedicated to elective courses or concentration options.

In Europe, as well as in the UK and some other parts of the world, full-time MBA programs typically last for only one year, not two. While these one-year programs usually don’t allow students to complete an internship, some offer consulting projects as an alternative to an internship.

Many students use full-time MBA programs to make substantial career shifts, such as from one industry to another or from one country to another.

Part-time MBA

The part-time MBA is intended for students who can’t or don’t want to leave their jobs. Students who pursue a part-time MBA can also work while pursuing their degree, meaning that this option is more flexible than a traditional two-year full-time MBA program. Some part-time MBA programs are flexible and can last anywhere from two years to seven years (or more), depending on how much time students devote to their studies. Many schools allow students the opportunity to take courses on weeknights or weekends, depending on their schedules.

Some schools try to recreate the camaraderie of a traditional full-time MBA by assigning part-time students to a cohort. Other schools allow part-time students the opportunity to pursue a specialization, such as marketing or finance.

Often, students will do part-time MBAs at local business schools. Graduates of part-time MBA programs usually can't expect the same kind of career mobility that a full-time MBA program offers.

Executive MBA

Unlike the part-time MBA and the full-time MBA, the Executive MBA is geared towards a specific kind of professional: those with substantial leadership experience. Students at these programs typically have at least seven to ten years of work experience. EMBAs are also part-time, with a variety of different scheduling options. Some schools offer classes on weekends, others in the evenings, and still others offer modular scheduling options, such as one week per month. These programs typically last between 16 and 22 months.

Like many part-time MBAs, the EMBA often relies on the cluster or cohort system as well, creating the sense of community inherent in the full-time MBA.

Online MBA

The online MBA is an alternative for students who need flexibility, in terms of geography and scheduling. Not to fear, though: online MBAs are equivalent degrees to in-person MBAs; students’ diplomas usually do not indicate that they pursued their degrees online. Many online MBA allows students to complete their coursework on their own time, although some are structured in a cohort format. These programs typically take three to four years of part-time study, although some can be completed in a shorter amount of time. Online MBA programs also typically offer several intakes per year.

Many online programs deliver classes “asynchronously,” that is, through pre-recorded lectures and the like; although some programs offer real-time lectures. These “synchronous” classes require students to be online at specific times.

Although some online MBAs allow students to pursue their course of study at their own pace, some schools also offer community-building opportunities. Some schools require students to meet using webcams for an online discussion every week, while other schools offer periodic residencies to facilitate networking.

Blended MBA

The blended MBA can be thought of as a combination of the online MBA and part-time MBA, combining periods of online study with face-to-face sessions. Like the online MBA and part-time MBA, these programs are intended for working professionals who don’t have the resources or desire to quit their job to study. These programs often include several face-to-face workshops per semester, plus study-as-you-go online tasks and discussions in electronic forums.

Global/International MBA

The global/international MBA is not an official separate category, but it’s an increasingly common designation for many MBA programs. These programs tend to attract a higher percentage of international students and faculty than regular programs, and also don’t focus their discussions on any one country’s business practices. Several of these schools also offer students the opportunity to rotate between different business schools during their course of study; for example, a student might spend several months pursuing a consulting project in an emerging market, or spend a month in China, Japan or Korea. These programs are often geared towards students pursuing careers in international business.