My last article regarding the ‘Categorization of Indian B- schools on the lines of classes of Indian Railways’ may have offended many. This article is not to clarify my point, but people may get an answer in the later half as in why is it a reality.
The first thought that comes to one’s mind when taking admission in an MBA college is its fees. Everyone tends to calculate how and within what time are they going to recover the investment they make.
While everyone has different notions about what’s the ideal way to know whether you are going for a right B-school in terms of fees, here’s what I think may be ideal:
If the average package of the course you are opting for equals the total tution fees of the course, you are sure making a right decision (I would rather call it a safe decision).
If the average package of the course lies anywhere between the total course fees and the half of it, you can go for it and there won’t be any serious repercussions.
If the average package of the course is less than half of the total fees, then probably the decision you are making is not good enough if you consider average package as a deciding parameter for taking admission.
Saying this, I totally agree that average packages are just rough estimates. It depends on the capability of an individual to perform and hence secure a good job on the basis of his own work for two years and impression that he/she creates in the interviews. It’s just that people getting their MBA education financed by banks do have to worry a lot about repaying it, leaving them no other choice than to always keep on calculating terms like ‘average package’ , ‘median package’ and sometimes ‘mode package’ too (I agree that’s a bit too much).
I rated colleges according to Railway classes and kept IIPM and Amity in the general Class. Here is why- It’s not that IIPM is a bad B-school. It has faculty, it has a good crowd and a brand name too. It’s just that it’s not considered worth the investment. I have many friends studying in Amity too, and of course when it comes to class and amenities, Amity sure has an edge over many other B schools which claim for an average package of 10 lpa and even more. The problem here is the Investment- Return ratio . It bothers everyone. Those paying instalments along with interest of upto 13.75% may know the reality.
When it comes to IIMs, of course no one has to think much before investing 18 lakhs, but when it comes to IMT, one would atleast open his/her eyes wide seeing 15 lakhs, even when IMT is a fantastic B- school. I would not like to go further as it offends people and I do understand that. But that’s the stark reality. We might not acknowledge it, but we sure consider it.
Saying all this, I have come to one single conclusion as per my experience. Before deciding to do MBA, one always thinks MBA is a degree (PGDM Diploma included). He’ll go, learn, built his personality to match corporate level and work with a good group later. But eventually it’s realised that it’s not just a degree, it’s an investment scheme. One needs to think a lot before investing and hence making out what can be the best and the worst scenario 2 years hence and finally, considering all parameters to full details, has to have a smart look at one’s pocket and then decide where to invest (sorry, I meant where to take admission 😉 ).