B-Schools : The Truth
In a recent column in Business World, Mahesh Murthy expounds some not-so-pleasant truths about business schools in India :
Understand that an MBA, in India at least, has nothing to do with education. Please ‘get’ this. It’s not that institutes teach you stuff that is irrelevant and obsolete. That’s probably true, too. It’s that nobody cares what you are taught here.
An MBA is about filtration. You’re an employer – more likely, an HR person, and you have to hire the batch of 2004. You can either search far and wide for the right people, and expend a lot of energy – or take the easy way out… So you set your sights on the right ‘level’ schools, and go hire at will. You secretly know your assumption is invalid, but everybody’s doing it so it’s okay.
I’ll say it again, in case it didn’t get through. It’s about filtration. Nothing else will explain why Day One hirers at IIMs are international banks who pick electronics engineers with specialisations in marketing to join finance functions. So much for what you actually spent six years learning. Practical value: zero.
An MBA in most places on earth is about learning to run your own business. Expand MBA and you’ll see. Here, it’s about getting a better job. So if you really want a great job, work hard to get into an institute that has a great placement record.
What if you actually want to be a master of a business you want to administer? Avoid the big-name schools. Look around and you’ll find programmes for family-run businesses at second-rung schools. You’ll actually learn stuff there.
My own (b-school) experience tells me : Each one of these truths is a gem ! But Mahesh’s column will be mostly read by people who have already obtained an MBA.
I only wish they taught such things in schools and colleges. That’s when we take these decisions that influence our life paths. That’s when we really need to know the reality behind the hype.
I do read Mahesh Murthy’s column in Business World. His views generally tend to be contrarian albeit grounded in reality.He has a flair for driving home some truths which have either been overlooked in the deluge of hype and popular opinion or ignored for fear of ridicule.HR managers responsible for recruitment have a job to do.They ought to find candidates who meet specific criteria for recruitment.Interviews and tests conducted by firms do not always ensure that the right people come through the filters.American firms are known to conduct as many as eight interviews before they make a decision.Ultimately any firm has to count on its own methods to make a decision. An easier way out is to approach graduates of prestigious schools who have passed through stringent criteria for admission and maintained a reasonably good level of academic performance to leave the portal of their schools.These firms know that they are placing a good bet on these hires because of their impressive credentials.On the other hand it would be fallacious to say you cannot find gems in other less known schools but you have to take on the onerous task of separating the wheat from the chaff. In a reputable institution like IIM-A the majority are achievers and are judged to have a high potential to succeed in the corporate world.To comment on another point regarding the curriculum and the usefulness of the course,I must say that the MBA program is never touted by the best schools as an academic endeavour notwithstanding the requirements that it shares with other programs offered in universities. It is meant to be an experience which leaves you with skills that have a shelf-life for a life-time. Your attitudes and thinking are moulded to help you get the holistic perspective.There are probably numerous schools which reward rote learning and do not nurture practical application of ideas. The point is that the MBA program is useful for some reasons besides the obvious one of the cachet associated with it and the opportunities that it opens.As for those who change career paths and find that they derive no value from their graduate or undergraduate degree, I must say that it is reason for you to be happy that you have finally made your own choice.In indian society young men and women make their choices based on peer pressure and parental influence. They take safe paths so as to minimise their chances of going wrong.It is the fortunate few who are talented and know exactly what they want to do, which escape this trap.Only later in life when they find opportunities to break away from the paths which neither excite them nor utilise their potential, do they drift away. It is not uncommon for professionals to veer away from their forced occupation to a chosen one. I for one went through four years of education in college with a major in pharmacy only to find satisfaction with cranking out software now.I urge the author of this site to initiate a discussion on the proposed unification of entrance exams for management institutions across the country and the ministry’s moves to seize control of the IIMs. This subject should trigger a debate on the place of pride held by the IIMs and the grave risks in placing them on the same canvas with the rest.
** Editor’s Reply **Thank you for your detailed comment, Anand. However, I do have a few disagreements with you that I thought should be placed on record :You say : “These firms know that they are placing a good bet on these hires because of their impressive credentials.” It is precisely for this reason that Mahesh’s arguements encourage candidates to choose an institute with a good placement record. That is all the “education” amounts to. No more. No less. And I, for one, takes exception to it being reduced to that role. Especially when it is not even the average Indian’s hard-earned money at stake, but the funds of their parents that get them through an expensive two years on campus.You say : “(An MBA) … is meant to be an experience which leaves you with skills that have a shelf-life for a life-time.” I disagree with you there too. It is nothing of the sort. It teaches you a whole lot of jargon, and how to talk confidently in difficult situations, and make jazzy presentations on “strategy”. That’s all the experience it can give. And in today’s ever-changing dynamics, this is hardly going to last you a lifetime !As far as your argument of people changing career paths to eventually find their calling, goes : I must say that I have no problem with that in principle. I only wish they did it with their own hard-earned money. Not with their parents’ life-savings (like 90% of India does). And not with tax payers’ money (as in IITs, IIMs, etc.). If you’re earning for it, and then spending it, you can experiment all you want.Lastly, a debate on the IIM-CAT issue is beyond the scope of this blog. Simply because I do not revere the IIMs as much as the average Indian does. And I do not think it’s worth my time to discuss this issue any more than it already has been discussed. The government can control it all it wants. The less it is hyped and revered, the better.
I do not disagree with the advice that Mahesh offers.My point about firms choosing the path of least risk does not aim to counter his advice.In any case a MBA program is professional and not academic in nature. No MBA program proclaims to prepare you for anything other than a career in business administration which subsumes all functions such as marketing and finance.To that extent, aspiring for a coveted place in one of these elite schools to get te best preparation there can be however imperfect it is,is not a symptom of a degenerating system. As an aside these entrance tests purpotedly do not evaluate the test taker on knowledge in any specific subject rather they test skills gathered over a period of time. The program as it should ideally be cannot be termed as education in the conventional sense.If the less known schools do not have an enviable placement record then it is clearly a result of the value that the market places on it. The market in this context is defined to be the consumers of the products of these business schools.High quality merchandise attracts a premium.How many of us can disagree that there is a yawning gap between the IIMs and other schools in terms of the quality of the resources ?In a nutshell B-Schools are meant to train their students for a career or a business to run. The MBA program is essentially different than a run of the mill academic program.It is not without reason that the best management schools in this country and elsewhere attract many top-notch employers.Market forces are at play.To deride this would be to disregard excellence.Schools vary greatly in the kind of skills that are nurtured among students.In highlighting the difference between a MBA program and a conventional graduate program, it is important to realise that in the former the mode of “education” if you will, is interactive and multi-faceted.It is not the content in the text books that one expects to retain for a life time but the skills at analysis and problem-solving which one has to hone over a life-time. I do not say that one could sustain his or her professional career just on the basis of a program.It is not a factory that churns out great managers. The best of the breed will shine no matter what…It is not fair to characterise the entire program as hogwash.what you take out of the program is your choice.not all who entered the program are of the same caliber and not all who leave the program will be of the same caliber. I do not see anything wrong in people changing their career paths and making a living out of their chosen profession.Ultimately no education is wasted.You grow as an individual whether or not you finally use what you actually learnt.i do not see the link between changing one’s direction and experimentation at the cost of another’s money.if we all knew what we are really interested in and chose to do just what we are good at. life would be less painful and less challenging.All views presented here are based on individual perspectives and do not aim to challenge another’s view. I end this posting with the aphorism “To each his own”
A book worth reading on this topic is “Snapshots from Hell” a book written in a witty style by a Stanford graduate on his experiences at the Stanford Business School.
Hmmmm,Interesting.I’m not an MBA, so that should probably filter me out of this discussion. But I have decent proportions of common sense, so I’m back in the game.I have come across few MBA’s, the IIM’s and the supposedly lower level ones.Very few (read one or two) made sense to me. The rest…forget what they were spewing, their entity didn’t make sense to me.Read somewhere above that the MBA program is professional and not academic in nature.Getting carried away by this superiority complex is what makes things and people go wrong.Lets faceit, MBA has become by and large an insurance against personal incompetencies.Idiots do MBA, because its an MBA, not because they want to stop being looked at as idiots.I have met and come across Managers at various levels and most of them fail to impress.By this logic, spending less and using the resources of a B-school makes more sense than running after those coveted IIM’s.The system itself is partial, as almost every job at a middle management or at times even entry level requires an MBA degree.We are obsessed with degrees, which in my opinion no longer hold value.On a different note, I see advertisements from the top 10 agencies in newspapers and on television. 98% of them are crap (for want of a more liberal word).I’m sure each of those campaigns were touched by some revered MBA strategists at some stage or the other.No I’m not saying doing an MBA is useless, nor everyone that comes out of the top schools are dumb. But lets face it, its nothing like it is advertised to be.
I react to Vijai’s posting.Judging a program’s worth based on individual experiences is asinine.The products of a system do not always reflect the true intent and guiding principles of it.One cannot deny that the IIM offers education of a high quality and that some of its products have been successful in india and abroad.It is probably true that many institutes that purportedly offer management education are really fooling themselves and those who flock to their portals to “earn” a MBA which appears to have become a placebo…your credibility and opinion is measured by the fairness of your comments.we don’t have answers to all questions and that is the truth we have to live with…Vituperation and mud-slinging without the foundation of informed reasoning leads you nowhere.
I don’t react to Mr. Anand’s comment. I only feel sorry for his benighted state of affairs.Is he an MBA, because he sure seems to be championing their cause to no end.Sometimes it helps to disinvest in adrenalin and react in a manner which does not paint your insecurity (for whatever reason) for the whole world to see and pass judgement.I never generalised about anything in my last post. Most were my personal experiences with MBA’s that I’ve met and heard or interacted with at seminars, which has never been impressive. Tough luck to your theory!Yes, you can’t judge a book by its cover, but you can more or less make out what it contains. I mean, don’t you read what’s written on the back cover or foreward before purchasing a book (and in your mind passing a judgement on it)?Unfortunately no system in life allows you to sample it fully before committing to it.Yes, if I see idiots, I will call them just that. Are they less of an idiot if they are an MBA? I don’t quite think so.I agree that these institutions that charge you so much money to ‘convert’ you into Managers by and large do impart valuable education. But to treat them as messiahs of the century is tantamount to blind faith, which again is the basis for my doubt.Vituperation and mud-slinging? What’s wrong with you? If you think this is vituperation, you don’t know a whit about sarcasm and what it can do for you! And also the real power of an acerbic diatribe. (There, some creepers to titivate your flowery disposition)This is a general post on a website that is hardly opinionated. Your targetted outburst reeks of your insecurity.Gather yourself together before the next stamped MBA convinces you otherwise.p.s. My apologies go out to all the really good sensible people (who can also happen to be MBA’s, no issues there). I do not doubt your credibility and capabilities, I am merely highlighting a trend that hangs on the coat-tails of your individual successes.
Vijai, your posting is a clear unambiguous reaction to my comments contrary to your claim.I have nothing at stake to champion the cause of Business Schools or their productsI do not claim that all those who graduate with a MBA are the epitome of managerial prowess.Do not throw the baby out with the bathwater by suggesting that a MBA is useless. I never posited any theory if you care to read carefullyOne reads a review of the book only to make a personal judgment about whether or not to read the full book.surely the distributors of that book dont gauge its salability based on your opinion do they ? you are at liberty to form an impression and act as you please but your opinion is just that and not the gospel truth. the same principle applies to my opinion.the name of the game is respect for freedom of expression.i do not proclaim the superiority of MBAs. we are here to post opinions.don’t you get it ?in your posting are the words “In my opinion”.. I dont know you and have no reason to disparage you.what got my hackles up were the sweeping statements that you make which i wanted to confront.the fact that you believe that i am insecure adds to my conviction that you are prone to making weak,unfounded statements without caring to know the realities.The point in essence is that much ails management education in this country. an mba is not an open sesame to a successful career . let us not get contemptuous of these institutions and their value in our society. you make choices in life so whether or not you want to be a MBA is upto you.extending an olive branch to you by admitting that i have come across many idiots too who cloak themselves in the garb of an MBA. — Insecure i feel about your rejoinder—
“Clear ambiguous reaction to my comments” – pray tell me what you mean by that. On second thoughts, never mind. I seriously think its not worth the effort. You are free to think otherwise.Where did I ever suggest that a degree in MBA is useless. I merely pointed out that blind faith in top schools is an exaggerated theory. Further to that, yes I have met dumb individuals who were MBA’s. But that does not mean I said an MBA is useless. You should try and avoid forcing words into somebody else’s mouth.Where did I say what I said was the dinkum oil? I said what I felt like. And that is my prerogative.You can confront statements without the use of words such as ‘asinine’. That was what got my dander up.And since it was the second sentence after “I react to Vijai’s posting”, logically it makes sense to attribute your tone to me directly.If you’re not insecure, great! I don’t derive any personal pleasure by tagging individuals.Recriminations can happen endlessly, so I too would not like to take this any further. Its not that I am trying to have the last say here, I hardly care.You are at liberty (which is also your prerogative) to add to this and end it if you may, but I do not want to pursue this any further as I don’t see it as a constructive debate at all.Let us both be happy with our beliefs and conviction however asinine or gospel-ish they might be.
Mr Vijai – I request you to read my posting carefully. the phrase i use is “clear unambiguous reaction” and not the oxymoron that you impute to me.i do not wish to be dogmatic in my beliefs and will indeed change when i am presented with evidence that encourages change.i shall skip over the exchanges we have had and refer to your original posting.you say that we should face the truth that a mba has become a sort of insurance against personal deficiencies(incompetencies-your word).in a public forum i advise measured statements so you dont get pilloried as Mr.Lyngdoh was, for tarring all with the same brush.i agree with you that an mba does not make one smart,nor does it lend merit to your work.the truth is not all are cut out for it.the overwhelming majority of schools are utterly unsuited for the purpose. The IIMs are head and shoulders above the rest, simply because of the quality of the education.whether that education is relevant to the real world is another matter.Let us leave that choice to the select few who enter the portals.as for the system which discriminates we could have another discussion on the discretion of the author of this site.I do not think you are insecure simply because i have no evidence.My unsolicited opinion is that moderation and fairness when manifested in either the spoken or written language will lend credence to your message. i do not believe that i have had the last word.we did have a thought-provoking albeit pungent exchange of opinions.
* Editor’s Reply *”Runglee rungliot” is a buddhist phrase that means “Thus far and no further”. As the legend goes, it was uttered by a monk who discovered the most delightful tea garden in Darjeeling, after which he aborted his search for the perfect cup of tea…The point of a site like this is to encourage differences in perspective, and people are bound to have their individual take on what has been written. It is important to also keep in mind that comments published on the site should add (meaning) for other readers when they come to the site. They are not meant to provide a vent for one-on-one warfare. So let’s agree to disagree, shall we?
Yes.Some brownie points have been scored because of my oversight (“clear unambiguous reaction”). The error is regretted. All else reiterated though.I RIP.Runglee rungliot x 999
Was Googling when I came across this blog discussing an article I’d written a while ago.Keep at it, gentlemen!Mahesh
** Editor’s Reply **Mark Twain once remarked : “Never let your schooling interfere with your education.” I suspect the case for an MBA is no different.Closer home, one of the most influential writers/thinkers of our times – Seth Godin – has this to say about his Stanford MBA :>>As far as I can tell, there are only three reasons to apply to business school. First, business school provides a tremendous screen for future employers. The second reason that people go to school is to build a network. This is another way of saying that there’s a social insurance policy among students. If someone in your class actually becomes successful or lands a powerful job, the rest of you have someone to go to for favors or even cash. The third (and least important) reason to go to business school is actually to learn something. And this is where traditional business schools really fail. The core curriculum at business schools is as close to irrelevant as you can imagine. If you and I were trying to create a series of courses that would all but guarantee that upon graduating, students would have no useful knowledge about how to do business in the new economy, today’s business-school curriculum would be a great model for us….two kinds of people don’t belong in business school: the talented folks who are in too much of a hurry to spend time studying and the dull ones who don’t have anything better to do. The paradox, of course, is that the best people aren’t prepared to leave their life behind for two years. They’re in a hurry.Suggested reading : http://www.fastcompany.com/magazine/38/sgodin.html
India churns out close to a lakh of MBAs every year and despite all the boom in the economy, good job are going only to those MBAs who show higher than average EMPLOYABILITY QUOTIENT. An MBA degree alone does not ensure a good job today. Several leading recruiters have already expressed an alarming concern over skill-deficit problems that fresh MBAs face today. A professional degree like MBA alone in India usually does not endow high employability to an individual today. This is particularly true for India because of excessive competition in the job market on the one hand and the gap between what the individual possesses and what the recruiter expects on the otherHowever, conventional secondary, tertiary and even professional education in India does not address this gap resulting in highly “literate” but “barely employable” individuals. Since Indian Education, in general has a completely academic focus, it fails to identify the skills and knowledge areas that decide employability.