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Has the MBA program lost its value

Has the MBA program lost its value?

The point of discussion here is on "Has the MBA program lost its value". Hence, the related discussion and the content present are thus based on what the program is all about and how with the time the value has changed. The discussion has completed with related theories and examples. In the end, some ideas are discussed which could help bringing back the focus on MBA program. 

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What is the MBA program all about?

Before we start the discussion about the loss of charm of MBA program, we need to know what MBA is all about and how and when it gained momentum among students.

The MBA program is Master of Business Administration. The program started somewhere in 20th century. The main reason for the starting of the program was that the companies wanted the scientific and more professional approach to rapid growth. It was felt to have trained professionals who have mastered the art of business. Hence it gave birth to the program MBA- Master of Business Administration. It is a professional degree which helps in running a successful business.

 Has the MBA program lost its value?

Now we come to the point of discussion whether the MBA program has lost its value? Really!

The answer to this question is yes. There are numerous factors which had led to the sudden change in the value of having an MBA degree with on having the same degree a few years back. We will now discuss in detail the main factors:

1) One of the main reason that MBA program has lost its charm is the number of colleges providing the degree, which has increased a lot concerning number the students who get enrolled in these colleges has also increased but the problem is the jobs in the market have not increased in the same proportion. According to a chief executive of a company "Unless you graduate from one of the top five MBA program in the country doing an MBA is not being worth it".  According to the interviews with more than a 100 global chief executives, found that preferred choice they would rather not hire any MBA graduates.

So the students who are getting MBA degree other than the reputed ones are not able to find the suitable job and package which an MBA degree holder gets. This leads to the conception among students that the MBA degree has no value now.

2) Coming to another reason; the market scenario is changing day, by day but the core product of MBA has hardly moved on. It may have designed in the new package, but the inside content is same, the faculties teaching them are using the same old theories used ten or twenty years before. The colleges now need to look at the current market scenario, the need of hour so that the companies feel the urge to hire the young MBA graduates. This point can be further elaborated as the companies hiring the new fresher MBA graduates should feel the difference between the already experience MBA staff they have; and the fresh MBA graduates. They find worth paying the competitive packages to fresher. It can help in motivating the future MBA aspirants.

3) Many working students take a loan to fund their dreams of pursuing MBA degree; in hope that package which they will get after getting MBA will help them to pay off the loan. But the market scenario is changing rapidly; the returns in term of salary packages are not satisfactory anymore. In addition to this the competition among companies to hire from top colleges, colleges to get students and students to get the decent package make it all big market. These things create a big fuss. The working student who after getting MBA degree is not able to repay their loan and lead a peaceful life gets demotivate.


We have discussed the change of the value of MBA degree, but we also cannot deny the fact that to run a company or to make it profitable we need proper management; for proper management, we need the people who can properly manage the company for which we need managers. Yes, here we reach the point.Managers -the people who are smart, with a long and clear vision.

Here comes the responsibility of management institutes that they should nurture students to become a smart manager. The management institutes should bring in the latest and updated concept. The money

given by students should be used to develop the educational quality rather than the infrastructure of Institute.This will help in regaining the charm of MBA.

MBA has become like an old jewel which still has a lot of worth but just needs a little polish.

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