“Overall demand is far more than the supply of MBAs cans be”

says VK Menon, senior director – careers, admissions and financial aid, ISB as he speaks with Ruchi Chopda about the future of management education in India

Financial slowdowns usually lead to a rise in MBA applications. What do you foresee for management education in terms of applications amidst the current economic scenario?

With about 3,000 schools operating in the country, the number of B-schools has gone up tremendously in the past few years. Thus, there will be a drop amongst the lower order of B-schools. MBA applications were dipping in 2010-11 but everywhere the numbers have started going up in 11-12 and continue to do so albeit not very strongly.

Has the sheen of an MBA degree worn off?

We can’t paint all markets with the same brush. Europe is clouded by the actual recessionary environment. If a market is facing a tremendous recession and people are losing jobs, then those with secure jobs will think twice about moving. Having said that, people who have lost jobs will actually take this as an opportunity to re-tool and re-skill. So these two numbers will kind of even out with maybe a small drop in scenario. However, in India, whatever the growth rate it’s a very macro scenario. India is a very large market for MBAs. And the overall demand is far more than the supply of MBAs can be. So the Indian demand is very different from the demand in a smaller market like Europe. So here even if there is a down sentiment in terms of the economy, the premium schools will keep doing better but the pressure will come on the not-so-premium schools because the student applying to these schools will wonder whether he/she should continue with my job or take on a degree.

Considering the current economic crunch, would it be a wise choice for working professionals to pursue the management degree now?

An MBA facilitates two aspects of one’s career – enabling a career leap and a career change. For instance, if a person from a technology stream does an MBA and goes back to technology, then the career for this particular person takes a career leap. He will get into a much higher slot in his own company or another company he joins in the same field. Secondly, if this technology student, enrolling for an MBA, wants to move into business development and marketing then an MBA facilitates that as well. So, an MBA sequence can facilitate a career change. A career leap or career change are the drivers for enrolment into an MBA course. In India, there will always be people who are stagnated and want to go up in terms of career leap or people who are tired of their jobs and want a change of role. The demand of a management degree will be determined by both these factors.

What are the key factors students should consider before applying for a management programme?

This can be looked at in terms of pre-MBA, during MBA and post MBA. At the pre MBA scenario, aspirants aspire to lead in business which means that they need to have a good breadth that is an overall perspective of business. Many students do not read much. They are fairly knowledgeable on their own narrow specialisation but they are very weak when it comes to the breadth of knowledge which includes general knowledge and knowledge of industry. An aspiring MBA graduate needs to broaden his horizons by increasing his business as well as general knowledge so that the opportunities for him post MBA goes up. Once a student enters an MBA programme, he can choose between options like marketing, finance, operations, technology, strategies consultancy, etc. Once you make the choice, during placements no company will give you a job only because you are from a particular B-School. So, if a graduate is looking at entering marketing, he will have to prove his potential employer that he is a good marketing guy. So you need to put in a more than the normal effort, that is done during an MBA, to ensure that you make a change favourably. Thirdly, thanks to the congested marketplace students really “fight it out” post graduation and feel that their first job is a critical thing. But they have to remember it is only their first job. After your MBA, you should get a job and a role in the industry you like and not decide your first job according to the pay. You take a job that helps you plan a long-term career; chances are you will do well in your career rather than in your first job.

What should students look at before deciding on which B-School to pursue their management degree from?

Unfortunately, the only parameter that is strongly considered by students enrolling for a B-School is placements. But in a B-School, the key components are the long-term growth and leadership of the individual and what the person is going to do five to ten years down the line. For that the learning and teaching environment of the school is very important. What kind of teaching is happening, what kind of subjects are being taught, how are the subjects being taught, who are the faculty. These are not available data. An MBA needs to be an informed decision. So students must reach out to alumni of B-Schools. They need to know the kind of learning and teaching that happens and the kind of faculty and peers they will be interacting with. MBA is a very peer driven and fluid programme. So students need to assess the factors mentioned above apart from the placement record of an institute.

An increasing number of students considering an MBA degree are now also looking at a master’s degree as a substitute. Could you elaborate on the difference between the two programmes and also which of the two is a better option?

There is globally a sharp increase in shorter programmes. A master’s degree normally comes under a short course category which is normally a one-year category. However, even short-term one-year MBA programmes are on the rise now. In such a situation, for students with say four years of experience considering the two-year and a one-year programme, the second year becomes an opportunity cost because if you do a one-year programme you graduate in a year and the second year you are earning. If you take a look at the Indian environment, the average years of experience of MBA applicants is growing. And the more the experience the more is the opportunity cost. If you are a fresher, you can extend your study period by two years and it’s alright. But if you have four years experience, that is difficult cause your costs are that much higher. So these are the trends in the market. And of course the master’s degree has got a particular niche in industry as well so that contributes to its popularity.

In times of financial crisis like these, is it a better idea to pursue one’s MBA in India or abroad?

From a learning-teaching point of view premier B-Schools will have a similar environment. Each school may have a specific flavour but it will be very good. The problem for Indian students in a foreign programme arise once the laws of the land kick in. And if you look at work permits and visa regulations across the globe in a recessionary environment it is not easy. The person needs to make an assessment of which country he wants to study in and then take a call on whether he wants to work in that country or come back to India. If the student is looking to return to India, then going abroad and paying double the amount for a programme is a tough call to take. But if the person wants to work in the country in which he is doing his MBA, then the laws of the land have to be studied very carefully.

Any advice you’d like to share with our readers?

If a student is trying to get into management education, he has to assess the components that make up an entry sequence. Beyond building one’s academic quotient, the student needs to develop interests across analytical platforms that can sharpen his intelligence like chess or puzzles. That’s a very good training ground, because at the end of the day you are going to take a competitive examination and in that the analytical quotient becomes very important. The second is to develop your leadership quotient by doing things apart from academics like leading a charity drive, mountaineering, playing the sitar, etc. All these are indicators that you do not just excel in one domain but have multi-domain interests. So you have to develop at least one or as many skills you want in alternate domains. Along with the leadership characteristics, you have to add the breadth of knowledge. You cannot be constrained by the basic knowledge of the subject or the work you are doing but you need to look at the wider range of knowledge. These are things that can be done only over a period of time.

Source- TOI and Education Times