Why MBA is no longer a choice but a necessity?
An MBA degree in the current era is not what it used to be a long time ago. Out in the market is a wide range of students and freshers walking with an MBA degree that it has outpaced demand. Due to inflation the once counted as most prestigious degree is no longer a program in demand. Some major causes of downfall in the choice for MBA degree are as follows:
- There are many management programs available which include part-time digital courses, theoretical courses are now a wasteland which is basically useless.
- The technological or scientific courses have become a preference over management. Master of Science has become a major competition for the management program.
- High cost for the training to crack the entrance for B-Schools and admission fees has become a major trigger for the downfall of the management degree.
- The job requirements have become more demanding in terms of skills and now prefer hiring in terms of skills.
- Freshers may lack experience and fall back on practical approach , which can be a major disadvantage when competing for job positions that require expertise and experience.
- The degree has almost become dilute.
- Preparing for MBA requires a lot of hard work, effort and time.
Historically, the MBA (Masters of Business Administration), has been the business degree for entrepreneurs and ambitious businessman to earn. Many of the known CEOs and big earners working in prestigious organizations have either done some postgraduate work or earned their MBA, which has made it a popular degree to pursue among the students.
But now telling the hiring company that you have earned your MBA degree is no longer the same cache like it was used to be. This is because there is now colossal crowd appearing to get an MBA degree and that has diminished its value in the market. What once set the most skilled business circle crowd apart is no longer unique. Let’s take a dive into the history of this prestigious degree to learn why it is no longer prestigious as it used to be.
What is MBA?
Harvard introduced the Master of Business Administration degree in 1908. Today, an MBA degree is a graduation degree offered by business schools across the nation. Many colleges now have online MBA programs too, with location no longer a barrier in obtaining such a degree.
Regardless of the whether you study in person or online, you can pursue your MBA part time or full time, and you have the option to specialize in specific areas of interest. For instance, you could focus on healthcare management, finance or business analytics. Some opt to pursue an MBA immediately after graduation, while others return to school after time in the workforce.
Traditionally, earning your MBA has been an excellent way to stand out to potential employers. Many people still see it is a requirement to reach a C-suite position at a large company. But does it make sense for most people in business? Not necessarily.
Why aren’t MBAs as prestigious as they were once?
Obtaining an MBA may seem appealing, but this advanced degree isn’t held in the same regard as it once was. Some of the reasons for the downfall of the MBA program are as follows:
Saturation
Meeting someone with an MBA degree was once used to be a novelty, and MBA graduates commanded a lot of respect and authority ’cause of their detailed knowledge of business. But now, there are all kinds of programs for earning your MBA, including part-time digital courses. With the easy accessibility and the large number of people entering and finishing these programs, the market for employees with an MBA is oversaturated.
If you are depending on an MBA degree to set you apart from the pack of quality job seekers, you are walking on narrow bridge. You have to have something other than the degree that differentiates you from your peers. Further, many educators feel that because of the wide variety of MBA programs that exists today, the quality of the coursework has declined, and students are not receiving the education that is necessary to get a high-caliber job after graduation.
Rise of specialized Scientific Programs
Beyond competition among the graduating students, the MBA program has its own academic competitor, which is Master of science. Many schools offer specialized M.S. programs in areas like finance are often drawn to an M.S. usually costs less than an MBA and takes only one year.
Newcomers who have little to no work experience and want to specialize in accounting or finance are often prioritize M.S. instead of a pricey MBA. That said, M.S. programs don’t cover general management practices, so earning an MBA makes more sense for those who want to focus on business practices at large.
Competition on a global scale
There was a time when only American students can sought a master’s degree in business administration. But as the economies of places like Japan and China draw increasing attention, would-be businesspersons from Asia and elsewhere are seeking MBAs too. The same goes for people in Europe. The number of MBA graduates continues to increase, further diluting the value and uniqueness of the degree.
Declining economy
A declining economy often means employers simply can’t afford to hire the best and brightest minds. Especially, those who request a higher salary to pay for their expensive business programs. Also, companies that may have previously subsidized schooling for employees are less likely to have the funds to continue to do so.
A highly qualified employee can pay for themselves in the long run, whereas the opposite can’t. However, it’s easier to hire someone less qualified and train them, which is why many businesses use internal programs to provide their staff education over time.
Fluctuating workplaces
A major drawback in the MBA program is the fluctuating or changing workplaces. Today, companies and jobs are often temporary, making career trajectories more flexible but less predictable. Even after spending your life studying and spending money on MBA courses, there’s no guarantee of scoring a high-paying job. Furthermore, employers have now starting to recognize other qualifications as prestigious as an MBA program. They have started considering that formal education isn’t the only way to be a valuable asset to the business circle. Meanwhile, some companies now prioritize hiring for cultural fit over education and experience.
Conclusion
An MBA degree now is not as prestigious as it was once. But this doesn’t mean no one should opt for one. The graph still showcases businessperson earning higher with an MBA degree than those holding Bachelor’s degree alone. In 2021, MBA graduates were expected to $29,000 more on average. According to the data surveyed by the National Association of Colleges and Employers.
Besides, an MBA degree can provide valuable networking opportunities to which you might not be aware of otherwise. The connections you make while earning your MBA could lead to more career opportunities down the path. Therefore, if you are exclusively focused on climbing the ladder, an MBA program will provide you a solid academic background. Take time to go through your desired fields and ultimate goal, considering the job title, responsibilities and pay. Then measure whether an MBA is truly necessary to get you there, keeping the mentioned factors in mind.