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).
What would you choose?