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Why MBA is losing its place in the market

Razess Ch | Sunday 10 March 2013 ( 0 Comment)

Five years ago when i completed my 12 i dreamed of proceeding for MBA in the future because i could see my future shining in this path but five years of the hardwork and in two months i will be completing my MBA with good grades but i am worried bout getting a decent job because while a decade back MBAs used to be hired by companies in tons of salaries today MBAs are worth only few bucks. Why is that so? Why after achieving one of the best qualification people are still worried aout making their living. With the salary they get the highest number person they can feed is themselves. India a home oriented country. People not only earn for themselves but for their parents and children as well. But today youth are compelled to wrkd in the minimum salary with double pressure for at least two to three yeas before they get a decent job. We are told that we are the future managers but everybody needs MBA today. Call centres, Departmental Stores, Showrooms etc. They hire MBAs in a very low salary. Is it not the insult to the course. Who is to be blamed for all this? Government or parents or you yourself. 


Well here are few reasons why MBAs have their supply higher than their demand:

a) There is a MBA college in every corner of an Area. There are thousands of institutes that are providing the Degree and people are dying for doing the course. So dues to this reasons there  are lakhs of MBAs coming out every year who doesnt know where to go next. Government should have a limitation in number of institution to be operated under a certain coverage area.

b) The demand and supply of the MBA degree holder is reversed in last decade. While the in 1990s the supply was less while the demand was high. Hence company used to pay high and hire the MBAs in a good position in the company. The atarting was from the position of a manager. While today the supply is too high but there are already managers filled up in every company so demand is low. Every year a batch of students come out so company can pick up its employess from a greater pool.

c) After the great recession people were more interested in saving their job than their position and remuneration. They even worked in half salary. the effect of the recession is still going on and the companies still pay very less.

d) Unlike other professional it is not necessary for the people to have a managment degree to enter corporate. A person with degree in any field is hired which increases competition.

e) Similarly one need not be necessarily a graduate in management in order to pursue Masters in managemetn which makes anybody eligible to go for MBA. This results is demotivation to those from management background. While in Medicines and other such professional courses one must have the background in the same field.


So we can see that how MBA is being treated a eecondary course though they ahve given i the name of a professional course. How it has not given the highest focus over the years and being handled very carelessly. If Givernment is to give a good focus ont the above points may be the demand for the MBA professional will increase in the near future.

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