Does an MBA degree ensure a job?

An MBA degree continues to attract aspirants as much as it did a decade ago. And in today’s ever-evolving corporate scenario, candidates have also realised that an MBA degree gives them an opportunity to accelerate their career growth as they bring to the table the much needed management expertise and business acumen. Hiring managers, too, say that the mere mention of “MBA” in your resume can give you the much needed edge

Twenty years ago, becoming a graduate degree holder was an achievement in itself. This conventional wisdom that dominated Indian minds for long may not necessarily ring true today for the current job market demands a lot more from its prospective employees, and one degree ain’t enough if young aspirants aim to gain that extra edge over the rest. Hence, in an endeavour to make your resume stand out from the clutter and hone your existing skills to further enhance your career growth, an MBA degree seems like the apt solution. After all, there is no denying that candidates today have understood the value proposition a fancy MBA tag brings to the table. The education industry in India has undergone a major renaissance for the number of opportunities it offers to students today are multiple, thus allowing each one to pursue their degrees closest to their respective aptitudes and inclinations; the growth of vocational and niche institutions in Tier I and II cities is a case in point. Naveen Manjunath, MD (India), Professional Aptitude Council (PAC) points out, “The number of applicants for Common Admission Test (CAT) has been increasing over the past decade; so are the numbers of applicants for other MBA schools across the country.”

Adding further to this, he says, “Firstly, employers look for differentiators when they seek talent. And possessing an additional degree is a definite differentiator. Secondly, given the unprecedented decline in availability of jobs for fresh candidates due to the global slowdown, students see this time as a great opportunity to hone their existing skills or even add a few. And having an MBA degree in addition to your regular ones is certainly the way forward.” Though the economic scenario is undergoing a major upheaval, there are many hiring managers who point out that the sheer mention of an MBA degree on the resume is a sure sign that the candidate has a long-term, promising work potential. “Since it’s an industry centric programme, in all probability, it will help HR managers have talented candidates aboard who can contribute towards the growth of the organisation and even facilitate value sharing,” says Malobika Sen Gupta, CEO, WLC College India.

While an MBA degree continues to attract aspirants, does it ensure a job, especially in the current economic scenario? Says Dhiraj Rajaram, CEO, Mu Sigma, a Chicago based analytics company, “Placements for MBA graduates from good institutes continue to be quite attractive even now. But during the downturn, as companies are forced to tighten their purse strings and the number of available jobs continues to shrink, firms are starting to get more selective in terms of where they hire from. The MBA tag alone does not bring with it any guarantee of a job; where one gets the degree from is also a factor that influences the decision making process of the hiring manager.”

Vikas Agnihotri, CEO, Religare Macquarie says, “We are planning to hire talented wealth managers with MBA degrees, equipped with the necessary job expertise and the right attitude. I believe that it is not the degree, but the combination of many competencies that differentiates an average candidate from an above average one. An MBA degree ensures the employer of the candidate of having a basic level of competency.” On the contrary, Manjunath adds, “The slowdown has affected all job opportunities at different levels, and it has affected students with MBA degrees too. However, the impact is not as high, as by and large, more MBA graduates do have a job offer as compared to a student with a bachelors’ degree alone.” However, Bikram Dasgupta, chairman, Globsyn Group feels no degree ensures a job today. “We need to constantly groom people. The institute is also vital. Over the last 10 years, as many institutes have mushroomed claiming to offer ‘management education’, there are many good ones too, which have come up in the private sector. These institutes offer good programs, are equipped with good faculty members, and strong collaborations.”

However, is the slowdown a good time to quit the job and go in for higher education? “Going for a higher education is a wise decision, irrespective of the ongoing slowdown and is a practical approach that will bear positive repercussions in the future. When the economy is booming, people who are already working may be too busy to think about getting a degree or going to a technical school, but when the economy is slow and people are re-evaluating their priorities, education, especially in terms of an extra degree does hold a lot of significance and becomes a consideration. However, one needs to evaluate his/her priorities, for example, family life, age, financial status, etc. to take this kind of a decision,” quips Gupta.

A look at history reveals that the number of applicants into MBA programs reached its peak during each of the four officially declared recessions since 1980. Why the upsurge in enrollments? “For starters, a tougher job market forces people to strengthen their resume. Slower growth within the ranks in their organisations during a downturn also means that there is a lower perceived opportunity cost of taking two years off to pursue an MBA. As the job market becomes tougher, an MBA allows one to differentiate themselves from the crowd,” confirms Rajaram. Adds Manjunath, “It always helps to add to one’s skills, irrespective of what career stage s/he is in. However, skills can be added while working on-the-job, or through a formal, full-time program. If given a choice, it makes more sense to earn-whileyou-learn.”

While an MBA is certainly a differentiator in today’s job market, a degree alone does not ensure accelerated career growth. Some of the ingredients for a successful career continue to remain constant: a go-getter attitude, excellent team management skills, and most importantly, one’s ability to innovate. Today’s job market demands professionals with abilities beyond just the knowledge of the subject and an MBA degree is certainly the way forward.

Here’s why an MBA degree is important, says R Shivakumar, director - Research & Development, Career Launcher:

MBA as an education - makes one understand the language of business.

MBA as a degree - makes one equip with enough analytical skills to be able to take appropriate decisions. Over the years, an MBA has become the de facto entry qualification to join the professional workforce. Hence, an MBA as a degree, is important.

MBA as a career decision - fosters excellent career growth opportunities. No other degree offers the same kind of flexibility and versatility that an MBA degree does. Ideally, the benefits that one can derive from an MBA education is much higher when the student has prior work experience.

(Courtesy by Times Ascent Posted On Tuesday, August 18, 2009 at 01:25:09 PM)