“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
