What is a Master of Business Administration?

Master of Business Administration or MBA accounts for the most opted PG programs globally, and also a popular stepping stone for C-suite jobs in large corporations. An asset for budding entrepreneurs, it is a credential that makes one eligible for jobs in top corporate firms.

Out of almost 6.1 crore students globally, roughly 24% hold a management degree. According to TOI reports, India has the 2nd largest pool of global MBAs. Though management entrance exams are the most competitive ones, still people want to do mba course due to its large benefits.

However, an MBA degree requires a significant investment of time, money, and energy. So before enrolling into the course, one should assess whether the benefits outweigh the cost and the efforts or not. Here in this article, we’ll be understanding what MBA is, and thus understand whether you should go for it or not.

What is an MBA?

• MBA is a masters program that provides a better understanding of general business management functions.
• It has a general focus on areas like Accounting, Finance, Marketing, Retail, Logistics, Leadership, Strategy, and many other aspects of running small as well as large business.
• Anyone who holds a bachelor’s degree in any field is eligible to pursue this course.
• The admissions into most of the B-schools in India are based on examinations like CAT, XAT, MAT, CMAT, SNAP, etc.
• MBA programs offer a range of specializations that allow students to acquire expertise in specific areas of business. Some of these include Finance, Marketing, Human Resource Management, Operations, Sustainability, Forest Management, and Rural Development.

Types of MBA

There are various types of MBA programs to choose from, like full-time, part-time, and executive MBA programs. 

• Full Time MBA: It is a course of 2 years and offers an all consuming educational experience that enables students to reset their career trajectories. An intensive course, it can be used to accelerate one’s career or even for switching careers.
• Part Time MBA: It is a course of 2-3 years, free from time bondage and with the flexibility of attending classes. It’s best suited for those who want to earn an MBA degree while continuing with their job. The fees for this MBA are also less than the regular MBA.
• Executive MBA: EMBA is a program that is designed for seasoned business people who want to jump to the next level in their careers and also want to improve their leadership skills.

Apart from these, you can even do a Global MBA through the Simplilearn online learning platform.

Cost of MBA

The fee of the MBA varies based on the institute. It can go as high as ₹25 lakh and as low as just ₹1 lakh.

• The cost of studying in IIMs generally ranges between ₹10-23 lakh.
• Other top ranked B-schools like XLRI Jamshedpur, MDI Gurgaon, SIBM Pune, and SPJIMR Mumbai charge somewhere between ₹17-23 lakh.
• FMS Delhi is a popular B-school that charges ₹1.92 lakh. Some other institutes like SIMSREE Mumbai and PUMBA Pune charges fees below ₹5 lakh.

Why Choose an MBA?

One of the biggest reasons why people choose an MBA is to boost their career. The program offers an all round development that makes the student a highly attractive proposition for employers, who are looking for talents that possess sharp business acumen and leadership skills to drive future growth.

Some other reasons to choose an MBA degree are:

• Salary Jump
• Promotion
• Change in work profile
• Knowledge Enhancement
• Better Networking
• Value to Resume
• Entrepreneurship

Career in MBA

An MBA degree is generally considered to be a worthy investment for a majority of people. The Return on Investment (ROI) offered here is a key factor behind attracting so many students.

MBA Demand

According to the GMAC 2021 Corporate Recruiters Survey, the hiring rate of MBA graduates was reduced from 92% to 80% in 2020 due to COVID-19. However in 2021, the demand increased and the hiring rate increased to 91%, the same level as pre-pandemic.

• About 95% of recruiters from the consulting sector are planning to hire MBA graduates.
• The demand for MBA graduates by the technology industry was expected to increase by 10% in 2021, as compared to pre-pandemic levels.
• 96% of tech recruiters in the technology sector were planning to hire MBA graduates in 2021, which tops the data of the previous 3 years [Source: Indian Express].

Job Prospects

MBA graduates are employed in every industry from finance to healthcare. With so many possible career options after MBA, it can be a bit overwhelming for students to narrow down on their ideal role. So they can narrow down their job roles based on their specializations.

Average Salary

The salary of an MBA graduate depends on various factors like their field of specialization, job role, location, skill sets, etc. The average salary a person can expect after MBA is around ₹8,30,000 per annum.

According to Payscale, the average salaries based on MBA specializations are mentioned in the table below.

We hope the details mentioned above should have cleared the doubt of why one should pursue the MBA degree. It’s your call to decide whether the course will be worth it or not depending upon your career requirements.

For those who are interested, start preparing for entrance exams like CAT, XAT, MAT, etc. There are various coaching centers that prepare the students for such exams. Students can even join online programs or simply do their self study.

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