|
Understanding the two important factors that are associated
with the value of an MBA - acquiring knowledge and the pay
packet.
HOW do you measure the value of an MBA degree? If the answer
is on-campus placement salaries then it is only partially
correct. The value of an MBA degree is a complex sum of various
tangible and intangible components. Two broad dimensions of
understanding value delivered are Learning and Earning potential
from an MBA degree.
LEARNING VALUE
Primary purpose of any professional degree is to develop
competencies and skills required for a particular profession,
so is an MBA expected to be expert in his domain of business.
MBA adds value to Learning dimension by developing: Management
Knowledge, Leadership Skills and Business Attitude.
Management Knowledge
The core functions of any business are marketing, finance,
operations, human resources and information technology (IT).
In a conventional two year MBA program, in the first year
every one studies all the above core subjects and in the second
year picks up an area of specialization in one or maximum
two of the above areas. Theory taught in the classrooms through
lectures is complimented by practical insights through case
studies and projects. Effective management curriculum focuses
on collaborative learning so that students learn not only
from the faculties but also from the peers.
Leadership Skills
MBA curriculum and pedagogy at the top B-Schools is a simulation
of business environment which would involve taking initiatives
and exhibiting leaderships, managing expectation of team both
in formal and informal settings, communicating and presenting
ideas and managing resources like time. Projects and teamwork
are key to developing the skills one needs to become a global
business leader.
Business attitude
A business manager has to often make decisions with the limited
set of information. This requires a systematic problem solving
approach and at the same time capability to take risks. Case
studies and simulations are again a very effective tool to
develop the business attitude. MarkStrat simulation developed
by INSEAD professor is used by over 20 of the top 30 in the
US and has been designed for teaching strategic marketing
concepts under real market conditions.
EARNING VALUE
If we take a system view of an MBA program, Learning is the
cause or input and Earning is the effect or output. A top
MBA graduate communicates high probability of success to the
prospective recruiter and testifies solid inherent qualities
of the candidate and quality of the training at the B-School.
This quality is reflected in the Earning value of an MBA program
which goes beyond monetary value or Financial growth but also
includes earning Professional & Social respect and developing
a Lifelong network.
Financial growth
Some people want to make a vertical shift in their current
career path, while some are looking to change industry or
job function. Others are looking to build an entrepreneurial
base that will enable them to put their own business plan
into practice. One common theme running across all people
is that they are looking to better position themselves for
future advancement and success. According to a survey conducted
at 147 business schools worldwide by the GMAC (owner of GMAT
test), the average business school graduate's starting base
salary tops $92,000. Financial Times ranking uses 'Salary
percentage increase' as one of the important parameters and
defines it as, 'The percentage increase in salary from the
beginning of the MBA to three years after graduation.' Thus
it is important to measure the value added by an MBA program
in a long term rather than on campus salaries alone.
Professional & Social respect
How would your impressions change, if you come to know that
George W Bush is an alumnus of Harvard Business School or
Cricket commentator Harsha Bhogle is an alumnus of IIM-A?
Quite often we change our opinions and impressions about someone
when we come to know that the person has joined or have graduated
from a top B-School. A top MBA brand is like a mark of quality
which earns you respect both in social and professional circles
and opens lots of doors.
Lifelong Network
Professional networks are critical for business success and
an MBA provides an access to a network of future business
leaders. In addition a top business school would also have
a large and influential alumni network which help not only
with career referrals but also as mentors.
In today's highly competitive environment best opportunities
are available for the best prepared and a top MBA is the best
training one can get for the business management career. To
get the best value from an MBA program, one has to ensure
that it is from one of the decent B-Schools and not from one
of the many mushrooming MBA factories who award degrees and
not knowledge and capabilities.
|
