Relevance of any course depends on the marketability of the course and the adaptability of the course to change with time. Masters of Business Administration (MBA) is one of the most demanding and versatile courses. Despite this stature, the charm of MBA courses is gradually fading. People are skeptical about the course. There are various factors for such decreasing relevance of the course. Some of such factors are discussed as follow:
High Cost
MBA programs are costly. Tuition fees and other costs of attending the MBA exerts significant financial burden on the student and their sponsors. There are only a few universities and institutions that provide good placements while the majority of the universities are struggling to provide good placement to their graduates. Hence, student workforce willing to join MBA courses are skeptical and very considerate while selecting the course and the university they are willing to enroll in.
| Countries | Cost of Study |
| United States | $ 60,000 – $ 120,000 |
| United Kingdom | £ 40,000 – £ 90,000 |
| Canada | CAD 30,000 – CD 80,000 |
| India | $ 30,000 – $ 48,000 |
| Australia | AUD 40,000 – AUD 100,000 |
| Europe (France, Germany, Spain) | Euro 40,000 – Euro 100,000 |
Questionable ROI
MBA is a costly program. There are only a few notable universities and institutions that provide a good ROI for studying MBA courses. Low-ranked MBA programs often struggle to recoup the investment considering the cost. Students are interested in MBA for its return. Now, the ROI, the only factor for students to consider a course, is questionable. Average placement on MBA in different countries, excluding top MBA universities and institutions are:
| Countries | Placement Package |
| United States | $ 80,000 – $ 100,000 |
| United Kingdom | £ 50,000 – £ 60,000 |
| Canada | CAD 75,000 – CD 90,000 |
| India | $ 12,000 – $ 188,000 |
| Australia | AUD 90,000 – AUD 100,000 |
Outdated curriculum in a rapidly evolving business environment
The business environment is rapidly changing and the MBA programs of most of the universities and institutions couldn’t adapt to this change. The course study cannot cope with the dynamic demand for modern business. Most of the institutes heavily focus on traditional theories and case studies which may be considerate but not relevant today. Modern business demands data analytics, artificial intelligence, and digital marketing skills which are critical for today’s world. Many institutes/universities consider these concepts but only in theoretical form.
Modern MBA courses must incorporate the following courses and concepts:
- Data Analytics and Business Intelligence
- Digital Transformation and Technology Management
- Sustainability and Environment, Social, and Governance (ESG) Management
- Global and Cultural Competence
- Entrepreneurship and Innovation
- Cybersecurity and Risk Management
- Remote and Hybrid Leadership
- Advance Financial Modeling and FinTech
Rise of Specialized, Shorter Program
MBA is considered as a general course. To cope with the changing environment, universities and institutions have come up with some specialized and shorter programs. Students are likely to opt for new courses that fulfills the demand of the job market. Top of it, now the job market demands experience over degree i.e. an individual with no academic degree can prove he/herself is preferred over an individual with an academic degree and inexperienced. Due to such changing dynamics, MBA is losing its charm.
| Mini-MBA Programs | A compact version of traditional MBA for professionals seeking for quick insights into management concepts without committing to full MBA. |
| Business Analytics and Data Science Programs | Course emphasizing analytics, predictive modeling and strategic decision making. |
| Executive Education Program | Short-term, intensive programs designed for senior leaders for specific competencies |
| Entrepreneurship and Startup Accelerators | Programs offering entrepreneurial skills and mentoring from industry leaders or venture capital firms. |
Product Management Bootcamps | Intense short term courses teaching skills required to manage the life cycle of products, from ideation to launch |
| Design Thinking and Innovation Programs | Course teaching creative problem solving and user-centered design for product and service development. |
Changing Job Market and Employer Expectation
The contemporary job market demands skills like innovation, adaptability, and digital literacy. There is a high demand for such skills. Traditional MBA courses emphasize less on such critical competencies and skills. These changing dynamics in the job market create a gap between MBA graduate’s skills and employers’ evolving expectations.