MBAs: Worth Your Time And Money?

Earning a Master's in Business Administration (MBA) can help professionals enhance their career opportunities, receive increased compensation get and job promotions. An MBA can provide the talents and knowledge necessary to start out a replacement business and lots of employers require an MBA for sure management or leadership positions.

On the other hand, an MBA from a top graduate school can cost nearly ₹80 lakh and above, which is a considerable expense for recent graduates. The question becomes: is earning an MBA well worth the cost? 

MBA coursework involves a broad spectrum of business-related topics including accounting, statistics, economics, communications, management and entrepreneurship. MBA programs ready students to understand financial institutions like banks, prepare them for management positions in other fields and also make them successful founders of startup companies.

There are two routes one can use to earn their MBA: a full-time or a part-time program. Although both programs will end in an MBA, there are trade-offs to think about. A full-time student will find it difficult to make time for it for the duration of their two or three years in class. These programs are quite popular with younger students who have recently earned their degrees and they may be able to afford to live full time on campus.

Part-time MBA programs typically are available two flavors. The manager MBA (EMBA) is meant for college kids who are within the workforce for a few time in executive or leadership roles and who are typically 32–42 years old. These programs are very expensive, and students expect that their employer will develop the tab. The part-time MBA is geared for workers who work full time but aren't yet in leadership positions. These students tend to be 24–35 years old and take classes after work, within the evenings, or on weekends to boost their careers.

Earning a degree with a 4.0 GPA is undoubtedly an applaudable achievement. But not getting straight A's won't necessarily blemish a candidate's chances at stepping into a good MBA program. Getting a 3.5 or better GPA (B+ to A-) is often the range these schools select from. The highest and top-rated programs will demand a better GPA than mid- or lower-tier ones.

MBA Hype ends’, ‘there isn't any career after MBA’ only ‘rich people can purchase MBA degrees today’; if you're an MBA aspirant, you'd have certainly encountered such statements from your friends, peers, parents and even academic experts within the recent years.

In fact, many have gone on to announce the demise of management studies as an educational domain within the coming few years. But, the million-dollar question today is that ‘is there any truth to those claims?’ Despite the negative mood within the MBA circles, the recently concluded MBA placement season data suggests that MBA is much from dead as a career option. If you furthermore might have any doubts with regards to picking an MBA.

The below mentioned are the advantages of pursuing an MBA:

  • Salary Matters:
    Despite the overall mood of ‘doom and gloom’ the MBA placements season 2017 concluded on a bright note with the number of scholars being placed remaining more or less the same. Additionally, MBA graduates were also pleased to work out that the typical salaries being offered to them saw a mean rise of 5 to 10%, which could not be at par with the previous years, but considering the present job market is sort of satisfactory. Keeping the typical salaries and compensation being offered to MBA grads in India, management still could be a much better option for millennials searching for a progressive career option.
  • Hefty Pay Packages:
    Coming to the individual packages now, even the salary offers to be to MBA students saw good growth, especially when it involves the highest offer being made. XLRI – one in every of the foremost respected MBA colleges in India saw the best offer of Rs 43 lakhs. Although this number is dearer by Rs 5 lakhs compared to last year, the package has got to be checked out through the glasses of demonetization and general economic slowdown. As far as XLRI is concerned, the typical salary saw a rise of Rs 70,000 and went up to Rs 19.2 lakhs.

    In no other academic domain, would you see job offers being floated at such a high level, occasionally even for freshers? So, an MBA degree if received from the correct college and in-demand domains would surely draw you hefty pay packages that can't be compared with anything in the other field. 
  • Banking and Finance Rule MBA World:
    Now coming to the more important aspect of MBA Placements i.e. identifying which domains still dominate the MBA job markets. For sure, the Banking and Financial world which is very smitten by excellent management tactics and principles still dominates the MBA job markets. The dominance of BFSI (banking, financial services, and insurance) can easily be seen through the fact that almost 25% of the whole batch of IIM Shillong opted to settle on offers from only 1 industrial domain.

    On similar lines, Faculty of Management Studies at Banaras Hindu University saw a 47% share of BFSI within the overall placement numbers. In terms of roles and job profiles being offered to MBA graduates are concerned, 2017 saw niche domains rise to the fore like risk management, insurance management, securities management, and investment banking also saw a major rise in the number of hires.
  • E-commerce & IT and FMCG Re-gaining Ground:
    While 2015-16 saw a decline within the number of hires visiting e-commerce and IT domains, this year these two made a comeback of sorts within the MBA placement season. Several IT Majors and E-commerce giants like Amazon were seen participating in the position sessions at the highest B-schools. FMS Delhi and IMI Delhi saw several MBA marketing grads being made respectable offers during the position season. On the opposite hand, FMCG (fast-moving consumer goods) also saw a rise within the growth of the recruitment of MBA graduates, especially for the roles of promoting, sales, and distribution profiles.

There are quite a few downsides to working towards an M.B.A. Pursuing any style of accolade inevitably requires investments of your time, hard work, and money. Keep in mind the below mentioned subsequent disadvantages of M.B.A. study when you’re deciding what your next professional move should be. 

  • Costs of Study:
    Studying for an M.B.A. is expensive. Estimates for the common cost of completing an M.B.A. programs hover around $100,000, and people who study full time and haven't any income coming in while studying should commit to possibly have accumulated even quite $100,000 once they’ve graduated.
  • Limited Skill Development:
    Students studying for an M.B.A. typically work on a particular skill set while they’ve pursued their degree. Some authorities within the business world have argued that M.B.A.'s study makes a person more likely to resort to old techniques and solutions that other companies have employed in the past to beat problems instead of inventing their own solutions that perhaps are better suited to the unique situation of their company.
  • Lack of Specialization:
    Those that conceive to study for an M.B.A. forgo the chance to accumulate more specialized skills. Sometimes, a management position is best filled by someone with training in a very specific industry instead of by someone with very theoretical training in management techniques.
  • Uncertain Return on Investment:
    Due to the high costs of the M.B.A. study, the return on investment of an M.B.A. degree is uncertain. Although individuals will probably be ready to advance in their career with an M.B.A., it’s important to form some predictive calculations to estimate whether the benefits you may enjoy will exceed the prices.

We can’t make the conclusion for you, all we can do is show you both sides of the coin and now it's up to the individual to weigh the pros or cons. We wish you the best in your professional journey!

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