Why MBA Graduates Struggle to Perform in Corporate Environment?

  • By Sneha Dasgupta
  • 20 February 2019

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MBA has been the preferred management qualification for students across the world for quite some time now. This has lead to the sustained growth of an entire sub-industry dedicated to churning out MBA graduates like a machine. The situation is such that in India alone there are over 4000 accredited institutes responsible for sending over 3,60,000 MBA holders into the job market every year. Unfortunately, according to the India Skills Report for 2018, 61% of them are unemployable according to current market conditions, which is a 3% drop from last year. On the other hand, almost all other domains have seen a rise in their employability, so what is it that makes MBA graduates unsuitable for the Indian job market?

Why Do Mba Graduates Fail to Meet the Expectations of the Corporate World?

Here are some points that will help you understand the expectations of the corporate world from MBA graduates and the reason for their undermined performance in the corporate world.

Outdated Knowledge

Most MBA colleges in India are known for sticking to the same outdated curriculum in hopes of reducing the learning curve for new students, as well as taking away the pressure on professors to innovate. Unfortunately, following such a method also ensures that MBA graduates miss out on learning about the latest developments in the field, whether it is in terms of their approach to business or the market requirements. This forces them to struggle to cover up these gaps in knowledge once they start working in a real-world corporate environment.

Theoretical Knowledge

One of the symptoms of having an outdated MBA curriculum is an overemphasis on theoretical knowledge. The same books, notes, assignments and case studies are passed down from one batch to another, with absolutely no thought regarding the challenges students might face in the practical application of this knowledge considering the developments in market demands. This makes a majority of their skill set useless as even the top-ranked MBA graduates have to struggle with adapting old methods that are either outdated or don’t take into account the impact of the latest technologies.

Lack of Soft Skills

Soft skills are some of the most important yet least talked about aspects of a well rounded MBA graduate. They include skills and behaviours that go beyond just your knowledge of the subject and focus on how you handle yourself in a day-to-day office environment. They focus on the humane aspect of individuals, such as communication, teamwork, interpersonal skills, cultural sensitivity, honesty, integrity, ethics etc. Without these skills, it becomes increasingly difficult to work in a management position where your actions can influence the general mood and potential output of the entire business. You can also read about the technical skills required for MBA students with our blog.

Unfamiliarity with Latest Technology

The rise of internet connectivity, e-commerce, social media and dozens of other specialized business software have radically changed the way business is done. The online market has expanded to such an extent, that the person in charge must know how to establish and run a parallel business on the web in addition to offline operations using tools such as Digital Marketing, Web Development, and Big Data. Unfortunately, most MBA courses don’t feature the knowledge or practice of these kinds of technologies, which can make it difficult for MBA graduates to catch up once they actually do enter the job market and are expected to know how to utilize these methods to their advantage.

Less Industry Exposure

It is no surprise that most people prefer to finish their education before looking for a job. If your education involves an MBA degree, this means that in most cases you will be entering the job market as a 23-24 years old fresher, despite being qualified for a managerial position. This lack of practical experience and industry exposure can be detrimental if you are managing people that already have years of experience in their field and expect you to know what you are doing. This makes it even harder on MBA graduates who then have to rely on their outdated theoretical knowledge to make important business decisions that have real-world implications for everyone who expects them to lead and succeed. A lot of MBA colleges have tried to address several of these issues in recent times, however, it will take a long time before every institute in India is updated to handle these challenges. Until then it is the responsibilities of the students themselves to ensure that they only pick places that can help them with these problems, so as to become consummate professionals of the corporate world. You can also learn about the benefits of an MBA to an employer with our blog.

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