What a shocking idea! How could anyone even conceive the fact that an MBA could be worthless! The MBA is the most popular degree since sliced bread, with institutions jostling to make new MBA’s in different disciplines, and new institutions entering the MBA teaching space in droves.

Saying the MBA could be worthless is sacrilege to many an ear, from teaching institutions to educational authorities to HR recruiters. But we think that from the present trend, MBA degrees are moving towards worthlessness at the speed of light.

Industry perspective: From the industry’s point of view, the MBA is a standard that is widely used for employment. In fact, it is an unwritten rule in most companies’ that an MBA is mandatory for employment to middle and senior management positions. However in India today, MBA programmes have mushroomed, and all and sundry are offering MBA’s in a large variety of fields.

This has led to a dilution of MBA standards which is continuing at an alarming rate. The good institutes have maintained standards, but with the MBA being seen as an extremely profitable option by the educational market, we can expect even larger numbers of MBA programmes to be rolled out. In spite of this glut, industry continues to repose its faith in an MBA as an entry standard. But as to how much an MBA can contribute in comparison to a non-MBA is a moot point. We cannot expect corporates to see differences. They are creatures of habit, and follow trends prevailing in the industry. If we look at the evolution of the job market, the trend until the 1960’s and even in the 1970’s was entry through apprenticeships or on-the-job training.

Company needs

Public sector companies literally offered a ‘teens to the grave’ job, and the large private sector companies like the Tatas’ and the Birlas’ followed a similar principle by having staff on rolls for ages. An MBA during this time was a fast track for bright young executives to move ahead of the deadwood in a company.

The MBA (though it was in existence before) became really popular from the 1970’s, when companies made it an unwritten standard of employment. But the environment has changed. Are the MBA’s relevant in their present form in the 21st century? We think a majority of them are not!

Student Perspective: The unfortunate players sandwiched between industry and institutes are the students. Students feel that an MBA programme will guarantee employment in a good company. This misconception is furthered by a number of new institutes in the country who look at the MBA as a money-spinner.

MBA programmes

Yet, if we get down to basics, the MBA programmes offer: theory, case studies, and a project. For fresh students, this is a recipe for disaster, as you are offering them more knowledge after 21 years of study with no real work experience. The project work is after all too short and to unimportant for many corporates to ensure that it is meaningful work experience for a student. For students with prior work experience, the question to be asked is, how useful the MBA really is?

Case studies and projects are absolutely no substitutes for real life situations, and however you sell it, the reality is that a vast majority of students will not really gain from the subjects they study in their MBA, apart from the fact that they have a qualification to add to their resumes.

It is this wastage of resources a country like India can ill afford, and which should be addressed. We accept that a small percentage of the students with work experience will gain from MBA programmes, particularly from the good institutes. But a vast majority will not. And this is the problem that should concern all.

Future Perspective: In looking at the MBA, non-MBA debate in this article, we can take the example of doctors and surgeons. Every country needs a lot more doctors of whom only a small proportion needs to be surgeons. We would have a huge problem if we had too many surgeons or no surgeons at all. So too with the MBA’s.
They are the equivalent of surgeons. We need more quality and standards in our degree’s with only a few being necessary for MBA’s. Also, the best surgeons are those who have had very good practice as a doctor. This should apply also for MBA’s.

Yes, work experience is taken into account for many MBA schools, but it is our opinion that this should be at least 5 years, if we are going to churn out the quality of MBA’s who will make a difference.

This will not happen as long as our undergraduate degrees are seen as sub standard to an MBA, but could happen if these degrees are improved in quality, and industry is agreeable to absorb such students with the same criteria as MBA’s.

Current scenario

If industry questioned any MBA’s on the value they bring to the table from their MBAs as opposed to just a degree holder, then the situation will change. Our argument is that with the higher aptitude of students today, their access to the Internet, connectivity to any technology around the world, it is worthwhile to absorb them in the job market immediately.

In this we have come a full circle from the past. We feel that the students have so much exposure today, that putting them through an MBA programme is sending them backwards, particularly since a MBA programme cannot give you the experience a job can. It can give you the theory of what you should or should not do.
But theory in management can never substitute for actual work experience, however good the business school. The MBA will add value if it is an executive MBA that a corporate sends only those employees who have demonstrated ability in the company.

The question we have to ask is: What next? If we allow the MBA to diminish in quality what do we make the next level of entry - the PhD? To avoid looking ridiculous internationally, we should improve our degrees and look seriously at MBA programmes being offered in terms of work experience, quality and sustainability in the market.

Joseph Rasquinha & Mohammed Zaheer Hussain manage the youngest HR ISO 9001:2000 certified consultancy.

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