MBA Still Worth Something

[MavericK]

MBA Still Worth Something
A new survey finds that, even in a down economy, MBAs hold their
value.
Stephen Taub, CFO.com
November 19, 2002


Is an MBA worth much during an economic slump when many companies
are laying off large numbers of employees? Apparently yes.

Turns out 88 percent of 1,247 people who graduated with MBAs in 2000
and 2001 are currently employed, and 76 percent are still working
for the companies that hired them after graduation. This, according
to the recent Graduate Management Admission Council's Global MBATM
Career Decisions Survey. GMAC is a not-for-profit education
organization of leading graduate business schools worldwide.

The typical MBA graduate receives $78,000 annually, although
salaries vary according to factors such as gender, industry, and
school prestige, said the survey.

Not surprisingly, then, three-quarters of the survey's respondents
rated the value of their MBAs as "outstanding" or "excellent," and
only 1 percent said it was a poor investment.

"The corporate global community clearly wants the skills that MBAs
have to offer," said David Wilson, CEO and president of GMAC. "An
MBA is international currency, and its value will increase as the
economy improves and businesses grow."

What are the perceived benefits of this degree among MBA graduates?
Number one, the opportunity to improve personally (86 percent),
followed closely by the credentials they desired (84 percent).

Other benefits mentioned included enhancing their career options (79
percent), developing management knowledge and technical skills (77
percent), preparing for a good job (71 percent), increasing their
earning power (61 percent), and creating the opportunity for quicker
advancement (66 percent).

The unemployed respondents said they are unable to find the jobs
they wanted (4.8 percent) or had been laid off because of the weak
economy (3.36 percent).

The lousy economy has had one negative impact on MBA graduates:
eroding perks.

Fifty-two percent of MBAs who received their degrees in 2000 were
offered signing bonuses; in 2001, that figure was down to 39
percent. About 70 percent of MBAs in 2000 received a performance-
based bonus, compared to 50 percent of 2001 graduates. And 40
percent of those who obtained their MBAs in 2000 were offered stock
options, compared to 29 percent in the class of 2001.

But are these perk-less MBA graduates happy with their jobs? Again,
yes.

Fifty-six percent of the respondents said they wouldn't hesitate to
take their current jobs again, while only 6 percent said they would
definitely not take the same job.

Forty-two percent of 2000 graduates had received promotions at their
current jobs since receiving their MBAs, compared to 26 percent of
2001 graduates.

Other findings from the survey:


Respondents said the factors that influenced them to accept their
positions included challenging and interesting work, competitive
salaries and opportunities to learn new things.

Looking back, they said they should have given more consideration to
their employers' organizational climate, stock options or ownership
programs, and attitude toward the MBA degree.

Graduates working as consultants were the most likely to rate the
value of their degree as outstanding or excellent (82 percent).

Seventy-one percent of graduates working in finance/accounting
valued their degree as outstanding or excellent, followed by 69
percent of those in manufacturing, technology, and health
care/pharmaceuticals.

Anil

[ashwin]

Hey Anil thanks for the article..where is it from? It made for decent (that word again!) reading even though it was a bit statistics-heavy..Hey Anil thanks for the article..where is it from? It made for decent (that word again!) reading even though it was a bit statistics-heavy..

[shubham]

well in Indian scenario..the main reason to do MBA..is to achieve success as quickly as possible...wot ur father achieved in 25 yrs,that u aim to do it in 10 orless than that..

no doubt its a natural extension for any technical person to do MBA...and move up in the ladder....

[sleeping_giant]

Originally Posted by shubham

well in Indian scenario..the main reason to do MBA..is to achieve success as quickly as possible...wot ur father achieved in 25 yrs,that u aim to do it in 10 orless than that..

no doubt its a natural extension for any technical person to do MBA...and move up in the ladder....

rightly said shubham..... but these are not the only factor one wants to do MBA. Infact looking at current scenario we are heading towards faster progress and its a trend that what our fathers achieved in their time took more than it will take right now to do the same thing. Your points gets negated. Its more or less urge to earn MONEY in bulk rather than cometition wid OLDies.

[denish]

Originally Posted by sleeping_giant

rightly said shubham..... but these are not the only factor one wants to do MBA. Infact looking at current scenario we are heading towards faster progress and its a trend that what our fathers achieved in their time took more than it will take right now to do the same thing. Your points gets negated. Its more or less urge to earn MONEY in bulk rather than cometition wid OLDies.

teen saal purana thread zinda kar diya.

Anyways, the questions is still as relevant

[TheCat]

hi guys..
lets make this thread more vibrant.........as

This is the right time to ask yourself..are u really interested in MBA...what's the real intention behind your MBA program...............Is it money..is it career...is it for knowledge...is it for personality.......

After deciding....there shud be no loking back or no looking forward.........

[kavisha.behrani]

MBA is a big time value addition to ur existing bank of knowlege


but of course we want money toooooooooooooooooooooooo
we didnt study to do charity yaar


the self actualization is tooooooooooooooo far tooooooooooooo be achieved....(ha ha aha ha,kididng)

[abhi_g1]

yaar koi kuch bhi kahein but peaople in good jobs r also dion or trying for mba bcoz it gives u promotion more pay and more satisfaction.

[pranav10]

Originally Posted by abhi_g1

yaar koi kuch bhi kahein but peaople in good jobs r also dion or trying for mba bcoz it gives u promotion more pay and more satisfaction.

I believe that an MBA is mainly done for a better oppurtunity....

THe oppurtunity could be a raise,
quicker climb up the corporate ladder,
better jobs,
shift of sector/field/area of work...
SO an MBA is anpother way of learning which involves a lot of life skills...
by life skills i Mean Problem solving ability, leadership ability, communication skills, ability to convince or sell ur idea to others, etc etc

However I would like to dissuade those who just appear for MBA exams as they have not thought of anything else. I feel that the MBA must be seleceted by those with a clear aim and purpose for that MBA.... i see a lot of students who are just trying to get into BSchool or they will just go and join their dad's/ fmaily businesss...

It is best to enter a BSchool knowing what you wil get and what you want to extract from teh BSchool.. personally for me it was always the learning and the interaction I will get with other students who hail from different parts of the country and have hte drive, the motivation, the burning desire to chase and acheive their dreams

HOPING AND PRAYING THAT ALL HERE ACHEIVE THEIR DREAMS


GOD BLESS

[shekhar]

Originally Posted by pranav10

I believe that an MBA is mainly done for a better opportunity

very much agree . one gets greater responsiblities & hence better opportunities to prove one's worth & realizing one's true potential.

Originally Posted by pranav10

THe oppurtunity could be a raise,

????

Originally Posted by pranav10

i see a lot of students who are just trying to get into BSchool or they will just go and join their dad's/ family businesss...

nopes d00d!! you're short of GK here.
aah c'mon.it's perfectly alright. in this case, they're sure of what they wanna do after an MBA. bringing skills acquired through an MBA will surely give a boost to dads...!! In fact in US B-Schools, there are special seats for those who wanna go back to family business & thus specify that they'll not take part in the plcmnt. process.

Originally Posted by pranav10

It is best to enter a BSchool knowing what you wil get and what you want to extract from the BSchool.. personally for me it was always the learning and the interaction I will get with other students who hail from different parts of the country and have the drive, the motivation, the burning desire to chase and achieve their dreams

now the point here is that only 1% of the people in this world know specifically, what their long-term goals are. at best, many of us have a rough idea of what we'll be doing when we'll be say 40-45 yrs. old.
what we all focus upon is the betterment of the journey called life, making & achieving small milestones & satisfying our intellectual demon.
saying i want to be an entrepreneur is a big fancy. who wouldn't want to work for himself but the point is how many of us will actually take the risk of going alone?
i also harbour this desire but don't know about my risk apetite. The maximum risk apetite which i have grown over the 2 yrs. of job is chucking a branded company name & joining a start-up. (mind you, this came over the time. i had an offer from a 10 men electronics firm within 3.5 months of joining my current company but i didn't have the balls...)

the bolded portion in your statement above highlights only the intangibles, the abstract reasons for your MBA. believe me, i'm also in the same boat . i'm not denying that you're not in that 1% , you may be but that statement for your why MBA is only an intangible, but yes a very important & valid, reason for an MBA. i can list more such reasons like a managerial role being closer to one's strengths.for eg. , managing people, one's already good comm. skills. so a managerial role will utilize these the best & help one realize his/her true potential. but the point i'm making is that how many of us are so clear regarding 'what after MBA?'. just like those opening a publishing house(a guy who got spot offer from SP Jain when he presented the plan of his but is a BLACKI also) or 2006 batch IIM grads opening a football club or becoming a singer. such specifics. how many, few....very very few.

so, it's boiling down to: yes, one should know what one will get(at the same time, be ready for surprises life throws at you, just like CAT.. ) out of an MBA. but knowing what you want....man, this is a long long process. it's like attaining nirvana. education is just a method of discovering of what you want. what one can do best is enjoy the journey(coz the journey is sometimes more important than the destination) & keep discovering...


cheerio!!
SHEKHAR