Is an MBA really worth the trouble?
Ipsita Sarkar Gupta | shiksha.com
A few months ago, a comment cropped up in a popular discussion forum.
“I'm out of work and looking for a new job, but I'm having a tough time. I'm thinking of going back to get my MBA, thereby making myself more qualified and employable. However, one thing my Dad keeps inferring is that an MBA will somehow, magically transform my life. He keeps saying things like “you'll come out with a totally different perspective” and that I'll be more marriage-able (we're Indian, for context)....
“So I'm wondering, those of you that got your Masters or MBA, did it dramatically alter your life in some magical way? Is it something you've noticed that matters to women (with regards to looking for a long term partner / wife?) Bonus: to those who did their undergrad in business, did you learn that much more in your MBA?”
In short, is MBA really worth the trouble?
There’s something called a B-School remorse. There’s even an article on it: B-school remorse: When the degree is just not worth it. It talks about how a certain someone quit her job as product manager, earned, got herself a posh business degree from IE Business School, and then took full one-year to land a job at the same salary she was earning three years ago, without the MBA.
Moral of the story: MBA does not guarantee a salary hike.
Arvind (name changed on request) a student at ISB Hyderabad, just got placed in a top US-based firm with a package of Rs 18 LPA. But as a senior IT consultant, he was earning almost double that amount. “They cannot match my previous package. But, I still think, MBA worth it for the leadership skills and unmatched networking,” he admits.
Return of Investment (ROI) of an MBA degree is something all aspirants are worried about.
“When I had done my MBA in 2006, it was a valuable proposition since I recovered the course fee in less than half a year of receiving my salary. But I suggest that anyone planning to get an MBA today should do a stringent cost-benefit analysis before making their decision,” says an HR manager of an investment bank in the city.
An MBA from a reputed business school can cost anywhere between 10 lakhs to 30 lakhs. Know the ROI of your MBA degree. Experts confirm that in the longer run, an MBA grad can end up earning more, despite a staggering loan amount that can last up to 10 years. However, this holds true if you get your business degree from a reputed (read top 20) B-Schools in India. According to an HR manager of a leading IT firm, “There’s no point in pursuing an MBA from a second-rung B-School. Work experience will hold more value than MBA from a bad institute.”
