Are IIM MBA’s too expensive?
I think so. I think this is also true of Harvard MBAs. I always used to wander about the intelligence of people representing companies which offered Rs. 1 crore or more per annum to IIM MBAs. I do not think anyone is worth that kind of money unless and until the person can show proof of what he has achieved in the real world.
You will all agree with me that pure bookish intelligence is not what makes a person successful in business. First, management is not science. In science, water always boils at 100 degrees C after allowing for atmospheric pressure (I hope I have remember correctly what I learnt in high school) but in management what worked today in one case may not work tomorrow in another case. Now if you are intelligent and topped your school in science you will remember that water boils at 100 degree C and you will be correct. However, this is not true of management.
Achieving success in the business world is also about having the ability to implement your strategy. Just having good grades does not guarantee that you have the ability to implement.
Lastly, I would like to suggest that achieving success in the real business world needs risk taking ability which cannot be guaranteed just with grades.
I would like to give you two examples from my experience. In 1980, I worked for a tractor company. I was a regional manager. I didn’t have an MBA. I was just a ordinary B.Com graduate. We had another regional manager who was a IIT / IIM (A). To make a long story short, I was asked by the management to find dealers in this guy’s territory as he was unable to locate them. While in the US, I had the unfortunate experience working under a Harvard MBA. I left the job just because of him. In fact, he also lost his job after I left.
Just to support my above thought, you can find a huge number of examples of company and product failures. I am quite sure that IIT/IIM graduates were responsible for their share of failures.
Now a IIT / IIM qualification does increase the probability of success but is it worth Rs. 1 crores ($225,000), I certainly don’t think so. Just to let you know that I am an MBA (Champaign, Illinois), a hotel management graduate (Hilton College, Houston) and also a CPA but I don’t think that even with the above qualifications, as a fresher I should be getting Rs. 1 crore a year unless I can back it up with achievements or examples of my ability to implement and take risks.
I am not saying that you don’t pay them more, but not Rs. 1 crore/annum. I think these high salaries were also responsible for companies going bankrupt. Most of the high salaries were paid by investment bankers and financial companies and they are the ones which are in big trouble today.
I think I have picked a controversial subject today but as you know, I always try to tell you the way it is. No beating around the bush.
avinash narula
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