Importance of MBA !!

Today afternoon I received an interesting call from a lady from a famous Management institute urging me to join for an MBA program. And then the discussion veered off to Importance of MBA’s with regard to success in life.

Here are the few reasons why I think doing an MBA does not hold much relevance in India.

In current scenario the approx salary of a MBA grad from a normal school is around 25k which is also the normal salary of a freshly passed out Engineering Graduate. And if we talk about premier management institutes like XLRI or IIM’s in India then there is a very different scenario out there.

Around 3,00,000 Candidates appear for CAT(Common Admission Test) each year out of which around 300 candidates get selected per institute in a batch which amounts to 0.1% success rate.

An average candidate has around 2 yrs of work experience and would have prepared for anywhere between six months and one year before appearing for CAT.

Then he spends two years doing MBA from an Ivy League college in India.

This means the person has spent four to five years after his graduation when he passes out of the management Institute and get a good job offer.

Now my question is that “A candidate who can beat 99.9% of other candidates in a national level admission test and be among top 300 out of 3 Lac candidates wouldn’t be smart enough to get to the same salary level in five years?”

And when you take the best talent out of the country and then train them for two years aren’t they supposed to be good. I think the quality of an Institute should be measured only when you take a mediocre student and make him the best in the league. Because then the credit of nurturing the student can be passed to the institute.

Starting Up in this context can teach a lot to a person in real world as compared to A MBA degree from an Ivy League Institution. As we always learn more from the experiences as compared to theory classes (I am not saying that MBA is all about theory and doesn’t contain on field work or assignments).

And again the experience of starting up is very different as we learn a lot during our journey as compared to theory classes. No MBA class will teach you that your suppliers almost never pay on time or the way to get it from them. And MBA classes generally do not give you any unknown or unsolved problem to face everyday which can be solved by innovative thinking. I do agree that there is a lot of unexposed learning and high quality case studies which we encounter in MBA but we all have to agree that firsthand experience is most important than a second hand case study.

Talking about placements, we must agree that they give great placements and the average package is more than what a middle class Indian can save in a life time. But again in my perspective freedom matters more than money (I mean excess money from daily expenditure).

And given a choice I would choose to be a founder of a company which has revenue of 10 Lac than being a Product manager earning 50 Lac working in a multinational company.

What would you choose?


Dear Dad…

This Saturday morning when I came home after the overnight journey I was afraid that you will be angry upon getting to know that I had quit my job. I still remember how happy you were when I told you that I got selected in campus placements with the third largest IT service company in the world and was among the few people who got selected in the first ever in – campus placements held in the history of the college. I also remember that how lucky I was to get placed as I had only 59.95% at the time of placement.

You were happy to let everyone know that your son had finally become a SOFTWARE ENGINEER in a Multi National Company.  And now you won’t even have to answer to those who looked down on me because I was not selected for Army or didn’t secure a good rank in CET. You had to pour your whole life savings and part of Provident Fund to pay for my tuition fee. I can still remember when you used to run around to arrange those 1,25,000 Rupees for my fee. And how securely and tightly you used to carry those while traveling in the bus. I also remember those sweats of perspiration on your forehead when you used to hand over that money to my college president.

And now that I have left my well paying job when most of my friends are still unemployed, without any promise of future just for an idea in my mind about which even I get second thoughts sometimes, I assure you that I will never let you down and will fight for my dreams till I achieve them. You made me meet many people so they can knock some sense into my head. Now you are worried that here I am without a future. Left a company with over 90,000 employees where I could have gone abroad within one year and joined a startup with just 9 employees where I am not even sure that will be paid my monthly salary since I have not talked about it.

But dad, I want you to believe in me, just like you did when you held my finger and helped me walked for the first time, just like when you suddenly let go of the cycle from behind when I first learnt to ride it. May be I will stumble and fall but each time I fall I will stand stronger and try harder. Neighbors and relatives will ask you where do I work and you may have to face embarrassment as you do not understand the technology so you can’t explain it to them. But as always no one likes change and these people will change their tones according to season.

At this stage in life it is very difficult for me to make right decisions with the lack of experience. I know you will be saying that at 23 one doesn’t know anything about life. But trust me dad, I want to learn and that is why I have chosen a different path for myself instead of a safe day job.  I remember what you said yesterday:

“vinashkale , vipreet buddhi”

Which in English means, “at the time of doom even the thinking power betrays us”. I know you were angry and hurt about the foolish decisions I am making but I assure you dad these experiences will teach me much more than what I can learn in a thousand years of theory.

I am lucky to be born as your son and with all the qualities which you have cultivated into me I assure you that I will fulfill my dreams and passion and together we will rock the world.

With love and trust

Your Son

PS: Sorry for the disagreements we’ve had, will have a party after I become successful.