The MBA has long been seen as the gold-standard qualification for ambitious young graduates wanting the best jobs at the most prestigious firms. Television and newspaper stories combined with classroom gossip often serve to reinforce this belief. But is it always the right choice? Surveys of some of India's major employers suggest that there is a gap between MBA graduates' expectations and the reality, and between what they have learnt as MBAs and what is needed to succeed in the corporate world.

The MBA Dilemma

For many ambitious young men and women graduating from their first degree, the world of work can seem to be a confusing one. Competition for the best jobs is intense, professional experience is often limited and many are naturally not even sure if what field they really want to get into. In this scenario, it is tempting to view the Master's degree as an opportunity to gain competitive advantage in the job market. Business has long been the most popular area while the MBA (Master of Business Administration) is the most popular option globally. Demand from India is large and continues to grow, but there is concern about students' expectations.

Part of this might be explained as a result of the different terminology applied by Business Schools in different parts of the world. In India typically, an MBA refers to a postgraduate qualification in the area of business management and administration. There are often ‘specializations' such as MBA Finance or MBA Marketing. Admission is open to fresh graduates as well as those with some work experience. Competition for the best schools is often intense and the quality of some of India's top business schools is certainly recognized internationally.

However, an MBA in the UK, USA, Australia and many other popular destinations is usually a different type of course, more general and aimed at experienced professionals. As a result, admission typically requires 2-5 years of post-study work experience, often including some managerial experience. Often Indian graduates seeking an MBA are looking for their first job, while their counterparts in Europe and North America are looking to move up the ladder or have a career change.

An MBA is never likely to be a Golden Key to fortune but the best MBA programmes do often give individuals the opportunity to access a position of greater responsibility in their current field. Many MBAs have also used the experience as an opportunity to switch from one area of business to another, from marketing or sales to finance, for example. Some use it as a platform from which they launch their own ventures, while, for others it provides an unparalleled networking opportunity. It is important to note that employers and business schools are keen to stress that an MBA complements hard earned experience and achievements in the work-place and cannot be expected to be a substitute for it.

MBAs and MScs

It can be a frustration for many graduates that they cannot access these top MBA programmes without work experience. But there is an obvious alternative - to opt for a specialist MA or MSc degree. There is often the misconception that these courses are in some way inferior to an MBA, but this misses the point entirely. Speaking to the Guardian newspaper, Carol Blackman, from the University Of Westminster School Of Business, sums up the difference. "Specialist masters programmes are designed either for career preparation in a clearly defined type of job or profession, or to develop or enhance professional competence in individuals who are already experienced.

The aim is to increase the depth of their knowledge in the specialist area. "The MBA, on the other hand, is a generic management programme which provides practicing managers with an opportunity for personal development with a broadly based introduction to all management subject areas and the theory and practice of management".

While it is true that many Indian employers look for an MBA and often mention this in job specifications, this is partly because it is the terminology with which they are familiar in India, it does not mean that they will view negatively a foreign qualification at the same level, particularly if the applicant has studied a highly relevant degree at a top quality foreign institution. This is underlined by Mr. Pradeep Gulati, Sr Vice President & Chief Human Resource Officer at Zee News Limited (a leading Indian media company) who told us that, "We are not very rigid, and would equally look at MS too. The major intake in my case happens to be for those with a background and Qualifications that is relevant to our field."

Fast-Track to the top

There is also a feeling amongst many that an MBA is a guarantee of better employment opportunities, a higher salary and a fast-track to the top jobs. The response in the UK and USA seems to be remarkably similar to India; it helps but there's more to it than that. Recruiters are quick to point out that it is the combination of the MBA with a proven level of experience within a particular industry, often already in a multi-national corporation, that makes these individuals so much in demand. Nunzio Quacquarelli, chief executive of topcareers.net, explains, "Clearly, salary differentials for those with a second degree, but no significant work experience, do not match those of a good MBA and a number of years in the workplace."

The Skills Gap Survey run by Westat India asks, "Do new MBA graduates of India's institutes and universities meet the expectations of their first employers? Looking specifically at a sample of blue-chip employers in the Indian Banking, Financial Services, and Insurance (BFSI) sector, It's found that 26% of all firms hiring MBAs require a minimum of 2-3 years work experience and that only 9% of organizations that hire MBAs fresh out of school, reported that they hire MBAs with no prior work experience, relevant or otherwise. So, sector-- relevant skills and experience are often equally important to qualifications.

One recruiter from a major player in the sector, interviewed as part of the survey, was critical of new MBAs' attitudes: "They think that only the MBA degree will get them that particular position, which is absolutely wrong. It has to be an individual skill and your performance during the course of what you're doing". He continued, "Whether you're Tier 1 or Tier 2, it hardly matters. It just gives you the first entry to the job. After that, it's all your skill, all your talent that should count at the end of the day.

The Westat survey also found that 80% of firms surveyed hired new MBAs with a specialization in Finance. Given the study focuses on BFSI sector, this is not surprising. But it does suggest that what recruiters want from early stage recruits is specialization and domain specific skills. In India this might be an MBA Finance, but in the UK,

Europe and North America, this kind of specialization typically comes from an MS, NOT an MBA. It is also true that MBAs do often offer students the chance to take electives that allow them to specialize in a particular area such as Finance, though, of course, such programmes usually require those several years of work experience. So whether an MBA is the right choice is a genuine question and the answer is not always yes. For some industries, it is still required to achieve senior management status, but so often, is work experience.

So whether an MBA is the right choice or not is also partly down to timing. At the early stage of an individual's career, specialist training courses or MA/MSc degrees are often a better investment. What is also clear both from the survey and through talking with employers around the world is that attitude and soft skills such as negotiation, confidence and customer focus are of equal importance to academics.

"Contributors: The Learning Curve Magazine issued by The Chopras"