“Are MBAs really overrated?” seems to be a question that finds an answer in the lives of many successful CEOs, business people and what have you that are doing well without them. And, many names do come to mind to authenticate this claim. People like Larry Page, Frederick W. Smith, Bill Gates as well as Jim Quigley are just a few of the very successful people without this highly coveted degree.
Having said this, getting an MBA is not without its benefits. If you plan to work in the banking or consulting industry getting an MBA is known to put you in a better position in getting in. However, the issue at stake here is not in the benefits of getting an MBA, but in the exaggerated value or importance that is placed in this master’s degree. Therefore, consider the list below to find some of the reasons why earning an MBA may be considered overrated.
1: The cost involved
The first thing that will usually prevent or even discourage many from earning an MBA is the cost involved. The fees for this program can run into $10,000s to $100,000s and that indeed is not cheap. This means that for many who will eventually decide to go for it they will have to settle with paying off loans used in financing their MBA program after graduating.
2: Creating soldiers, not true warriors
If you haven’t noticed one of the things that makes an MBA overrated is the fact that it does not guarantee business success. As opined in the opening statement of this article many of the well-known CEOs, owners of the most successful businesses don’t have an MBA. Of course what this means is that it brings into question the relevance of this program to aspiring or established entrepreneurs. This is why most of the people who have an MBA end up being people who are no better than the “average Joe” employee or business person.
3: It seems everyone is assured of a degree at the end of the day
This third reason looks at the “pass rate” of MBA programs. Over a period of time in Wharton it was discovered by researchers that less than 1% failed any particular course. And, this seems to be fairly replicated in other well-known business schools. Now the question would be is this a true reflection of the situation of things. This is most likely not so. What this means in effect is that these schools have come up with an extensive grading system that ensures the least suitable get credit.
4: MBA programs seem to be practice-deficient
Maybe one of the greatest reasons why MBA graduates fail to deliver is because they have not been exposed to sufficient practical experience. And, this is much needed in today’s rapidly changing business world. In most cases these business schools depend on teaching methods that are obsolete and do not provide enough opportunity for their students to practice what they are learning. So by the time they come out of business school it becomes difficult for them to reconcile what they have learnt with the real world of business.
5: Reality versus big talk
Many business schools that run MBA programs like to make a lot of noise about their students getting high-flying jobs that pay very well after leaving school. But most often than not, this is not the case. As surveys conducted by BusinessWeek and others prove otherwise. Sometimes such surveys will show that possibly one or two graduates in every four thousand (4,000) from the top-rated ten MBA programs gets employed as one of the most paid executive in any given year.