Thursday, May 17, 2012

4 Myths About MBA

Myths About MBA
Business School Salaries
Business Ethics

The application for management studies i.e MBA have dropped dramatically over the past years. This drop has been recorded particularly after recession of 2008. Companies around the world have shed their work force and packages have dropped to the unexpectable. Many economists have blamed MBAs for the slowdown of economies. There are many myths about MBA degree with many. Let me take them one by one.

1. MBA Graduates Are Corrupt

People think this because MBA students learn business. Their primary purpose is to earn and maximize share price. They will go to any limit to achieve this aim.

Problem: People think MBA’s are only taught to to earn money.

Mehmood Khan Unilever
Shashank Shukla Teach for India
The Truth:  MBA students are trained to earn money. They are better equipped to make success for an organisation. If 55% of MBAs are corrupt as admitted then 53% of the enginners are corrupt too.  Why only blame the MBAs. There are many  examples of MBAs who are responsible for social changes. Mehmood Khan IIM Ahmedbad whom I know head innovaion Unilever quit his job to tranform Haryana, Shashank Shuka who quit his US based job for making shelters for the poor  and homeless in Delhi etc are some glorified examples. Humans are greedy but education makes them civilized.

2.  MBA graduates can Barely Create Value

Some people have the myth that MBA degree can be replaced by other degrees. Some have said that engineers can run the company better than an MBA.

Problem:  We all know there are many examples where MBA students have created value out of startups. People need to get some facts right.

The Truth: This was not the case when everyone was earning their share when the economies soared. However MBA graduates have been partially able to tame drowning economies which are run by governments (World Politics)and not the capitalistic views. MBA graduates have cut costs and given the socity quality offerings. This has raised the standard of living of many. Created opportunities around the world, for example “The Business Outsourcing” model which has given India, Phillipines, Bangladesh service outsourcing as BPOs and IT industry. What about the manufacturing in China? MBAs have given the world stability, growth and improvement. Is there an engineering course in social sciences, but in MBA degree there are many. Vikram Pandit the CEO of Citi took 1$ as his salary in the year his company lost its margins due to slowdown.  Just think before you make any judgements and biased opinions towards any profession.

3. MBA students are the Greedist

If you think that you will know why you think that. Is an MBA the ultimate form of humans, infected from greed created by the man made rupee? How do you measure greed in humans by skewed statistical research methods?  Why do people blame a stock broker when he wants to maximize profits? Isn’t that what most of us would have done even if we were not MBA? But still lets assume that MBA is the greedist because some intellectuals think so.

Problem: The reason behind this thought is simple. MBAs earn the highest salaries while they sit in an AC room with their laptops and blackberry.  

The Truth: MBAs are the need of the hour. Management is not just term that sounds heavy, its much heavier when it is on your shoulders. MBAs are paid a mere margin of what they achieve for the company. This is simple business that they would have otherwise earned if they had been an entrepenur. The new generation of MBAs is different than what it was. They seem to join orgainisations where they really feel they can make a mark and leave an impact.

4. MBA Graduates Lack Creativity

MBA can fit anything into Excel sheets but they cannot be creative. Why do some people who are particularly business men and others (not MBA ofcourse) think MBA is a Google copy paste.

Problem:  They think this because MBA is too specilized with jargons, boring suits, hairstyles and blackberry of course.

The Truth: MBAs are founders and co founders of social media and tech companies. They are present in the advertising world (a creative field if I am right). They are the salesmen around us( Have these people ever thought what it takes to make a sale? Some Creativity uhhh? It is high time people stop using creativity only along paintings and musicians. MBAs are running the show, It is creativity.

What it takes to be an MBA?

I have seen numerous articles on the net which say MBAs cannot do this and that by a degree. They are greedy and lots of non sense from bloggers who haven’t learned the way to manage their computer desktop. MBA is not just a degree which fetches good placement and lifestyle, but it teaches how to take control of situations. I agree It doesn’t makes you a leader but it’s the path to become one.

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