MBA: Myth vs. Reality - Is it Still the Right Choice

Introduction

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Hello and welcome to this episode of ET Career Talks, a very important topic: MBA Myth vs. Reality. That’s what we're going to be discussing today, and I have two wonderful guests with me. First, we have Dr. Sha Singh, Director and Founder of Atis, and Dr. Kunal Saka, Director of Marketing at Saptagiri NPS University. Welcome to the show!

Before delving into the core questions, let's get to know both of you a little better. Dr. Sha Singh, can you share what you do in your daily life?

Thank you for having us here today and discussing such an essential topic. In my daily life, I’m a serial entrepreneur who has built two businesses before founding Atis, which is now the third-largest e-commerce distribution supply chain company. As the founder and CEO, my primary responsibilities involve managing resources, strategy, and ensuring both are enabled to succeed together.

Dr. Kunal, what's your day like?

I’d like to share two phases of my life. Initially, I worked with Google, where my assignment was to develop Google Maps for Asia, including India, Pakistan, and several other countries. My job allowed me to travel extensively, and after 15 years in that role, I decided to return to education to give back to society based on my experiences. Now, I promote Saptagiri NPS University as the Director of Marketing and lend my knowledge on how management functions.

With that background, let’s address the hot topic of the day. According to the Economic Survey, there are significant employability rates among graduates in India for 2023-24, with the MBA topping the list at 71.16%.

Dr. Sha, is an MBA really for everyone?

That’s a good question. When discussing the evolution of the MBA since its institution by Harvard Business School in 1908, it was originally intended to help people learn skills for better management and profitability within organizations. Today, however, the perspective has changed; not everyone needs an MBA. What we see today is that organizations often look for experience rather than just the degree.

Kunal mentioned overqualification, and he’s right; many people pursue an MBA merely as a stepping stone to higher pay. In my e-commerce company, I don’t hire based solely on having an MBA because those skills often don’t equip one to manage an e-commerce business. Real-world experience and skill application matter far more than a degree.

When it comes to educational institutions, Kunal, how do you ensure students in your university are equipped with the skills they need for future employment?

Today, the MBA degree isn't just about the theoretical knowledge but practical knowledge too. We encourage students to be sharper and more versatile. We incorporate aspects such as incubation and entrepreneurship into our curriculum too, allowing students to apply their skills in real-time. This coupled with internship opportunities is vital for employability.

We see educational institutions charging an exorbitant amount for an MBA, which raises questions about return on investment (ROI). For instance, some premier institutions now charge up to 40 lakhs for an MBA, which many parents struggle to finance. How do you justify these costs?

These expenses are often aligned with providing high-quality resources, faculty, and infrastructure. Parents need to see beyond costs and focus on the value of their education. Institutions must provide real-world experiences and collaborations with global universities.

From a broader perspective, do you think we suffer from a form of survivorship bias in how we perceive the value of an MBA? We often only focus on the top earners and ignore those who struggle.

Absolutely. There’s a validation bias that shapes students' aspirations, in part due to social media. The biographies of successful individuals are often exaggerated without regard for the countless failures. We need to change the narrative that only prestigious MBA graduates succeed.

For students considering an MBA, how can they judiciously choose a B-school?

When selecting a B-school, it’s crucial to think about faculty quality rather than just infrastructure or placement statistics. Look into internship opportunities and the actual experiences of alumni.

On a closing note for both of you, what advice would you give students about their education and career choices?

Students should have an open mind and realize that education is not the only avenue for success. Encourage empathy, accountability, and continuous learning. It’s also essential to not confine oneself to traditional job prospects but explore freelance or gig economy opportunities to gain financial independence and grow their skill sets.

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Keywords

MBA, employability, economic survey, career talks, skills, education, internship, entrepreneurship, job market, survivorship bias, business school.

FAQ

1. Is an MBA necessary for success in the business world?

While an MBA can be beneficial, real-world experience often outweighs the degree. Practical skills and networking are equally important.

2. How should students choose a suitable B-school?

Students should focus on faculty quality, internship opportunities, and alumni experiences rather than just infrastructure or rankings.

3. What is the impact of educational costs on MBA programs?

Costs can be justified by the quality of resources, faculty, and real-world experiences offered, but they can also lead to concerns about ROI.

4. How can students acquire skills beyond their formal education?

Students can engage in freelance work, internships, and online courses to further their skills and experience in their chosen fields.

5. What qualities should students cultivate for future success?

Empathy, accountability, adaptability, and a commitment to lifelong learning are essential attributes for personal and professional growth.