An article in The Hindustan Times today caught my eye – Fewer than half of new MBA graduates getjobs as economy sputters, trend at 5-year low. The articles open with a hard punch to your gut : “Job offers for fresh management graduates in India are at a five-year low, official data show, a trend experts blame on a sluggish economy as well as a mismatch between the years-old curriculum and industry expectations…. In 2016-17, just 47% of Master of Business Administration (MBA) graduates got placed on the campus, a dip of 4% over the previous year, marking a five-year low. At 12%, the drop was far sharper for postgraduate diploma holders.”
I said this on my blog nearly 4 years ago – there is a dire need to revisit the MBA Curriculum; but it isn’t the only aspect of this problem. I say this with authority, as I have seen both sides – having been a Visiting Faculty, as well as a current Industry Veteran. There is an issue with the MBA Course, but correcting it requires a will; it requires a combination of fresh talent in MBA Colleges – Industry Veterans who should team up with Academicians for solving this complex problem. At the same time,Industry needs to invest in training – which it doesnt; it needs to re-visit the entire Performance Management System, which is hopelessly obsolete, number oriented and simply fails to capture the modern reality of business; it also needs to set up realistic expectations from new recruits. Let us consider these two problems one-by-one in detail
THE MBA COURSE
The view that all in wrong in the MBA Course is inaccurate – for any number of reasons. First of all, the MBA Course is an introduction to Business & Management, and establishes the fundamentals in business – without which we are lost. In my experience – all the courses I have been associated with, do it admirably, at least in letter. The difficulty is the absence of proper teaching aids – and I don’t mean AV equipment. Frankly, they are enablers; we require content. And content is the real issue – there is a need to revisit the content of the books, and make them more relevant.
The content is woefully inadequate in terms of Indian Examples. As a Management Book Reviewer and avid reader of Management Research Books,
The MBA Course is supposed to give basics of Business, Marketing, Finance, etc to prospective employees for the corporate sector; this is what it does.
In the paragraph above, I stress deeper Industry-College interaction; this cannot happen unless Industry understands that it is a part of the problem. I stated in the opening that both the colleges and the companies are responsible for the glut; let me add a third factor here – the students. The industry grouse that the MBA expects too much and knows too little is grounded in reality, that much is sadly true. But with deeper interaction – this can be attended to, as the reality sinks into students. Before blaming the students, we need to accept that we are making no effort to educate them as well.
The key question is, how will this interaction happen? This can only happen in the Human Resources Function, and some other staff functions; for reasons I attend to later on in the article.
The other aspect that needs attending to – the toning down of expectation from new hires. That will not happen unless you re-design the entire PMS – which leaves no scope for learning, or real training. I understand we are in a hypercompetitive market; and that bottom and top lines need to be achieved; but chasing numbers mindlessly, without heed to basics is fraught with even higher risks – as many in my parent sector, Telecom, found much out to their chagrin. There needs to be a balance between pure numbers, and business basics – and at all levels. You need to judge strategic ability at all levels – and this is even more vital in a hypercompetitive market, where the cost of a strategic misjudgement and improper strategic implementation are the precise same – Business Closure.
The list of companies that have paid the price for the above is incalculable; we need to do both – hit our numbers while also ensuring long-term stability of the business as a running enterprise. This we have clearly failed to do in many cases. And once you shift focus to the nitty gritty of business – the nuts n bolts, the basics – the need for a strong fundamental and theoretical basis will emerge ever more strongly. You don’t need an MBA to just hit numbers, to be brutally frank; but you need a good thinking and trained MBA to be able to judge the medium and long-term impact of your short-term tactics even at field level, and modulate your responses in the field accordingly.
CONCLUSION – COLLEGES
Disclaimer : This article first appeared on my Blog, Reflectionsvvk – where I blog on Business, Management, Economics, and Books