MBA certificate no longer ticket to instant success
MBA certificate no longer ticket to instant success
By Rita A. Widiadana
JAKARTA (JP): Ten years ago, an MBA degree was a ticket to
instant success.
An MBA graduate, especially from a foreign business school,
enjoyed many privileges as the prima donna of the business
community. Immediately upon graduation, they would be appointed
to top positions in multinational companies. They received high
salaries, drove luxurious cars and lived in comfortable houses.
The sweet days are over. Hundreds of MBA graduates are lining
up for jobs. The excessive number of MBA graduates and the influx
of foreign managers and professionals has made the local job
market very competitive.
Today, those lucky enough to have a job, are satisfied with
moderate salaries.
Sukiswo Dirdjosuparto, chairman of the PPM Graduate School of
Management (IPPM) in Jakarta, says the business community still
needs MBA graduates.
"The fact is, companies are becoming more selective in
choosing them. They are looking for qualified persons. It is a
natural selection. The best ones will survive," Sukiswo says.
Indonesia needs at least eight million managers to support its
business activities. Currently, there are only 6,500 MBA holders,
including 2,000 overseas graduates.
In the l970s and the early l980s, the number of MBA graduates
was limited, with many graduating from reputable institutions.
Now there are thousands of MBA holders. Some come from reliable
institutions, but many obtain their degrees from unknown and even
illegal foundations.
"There is no one to blame for this situation. It is people's
wrong perception towards MBA programs that have led to this,"
Sukiswo says.
Many people think that once they enroll in a business school
and get an MBA degree, they will automatically become a good
manager, Sukiswo points out.
Tanri Abeng, president of Bakrie business group who received
his MBA degree from State University of New York in the l960s,
once said that an MBA holder could become a good manager if he or
she possessed sharp business intuition and natural leadership
ability. These skills are not taught even at Harvard Business
School, Tanri said.
MBA programs provide the opportunities for people to widen
their business orientation and to improve their business skills
and concepts. It is not a guarantee to a successful career,
according to Tanri.
The United States was the first to recognize a MBA. Although a
business program had existed in Harvard since l908, it became
popular only in l960s when American businesses grew at a
tremendous pace. The birth of the program was triggered by the
wide gap between the academic and industrial worlds. The rapid
growth of multinational and large-scale businesses forced the
business communities to hire highly qualified and innovative
managers. Fresh university graduates, no matter how qualified,
were considered unable to fill in such positions.
Sparked by this economic growth, MBA programs, which offered
more practical and problem-solving strategies, were badly needed
to meet the increasing demands for qualified managers. Today,
around 850 private and state (as well as illegal) MBA programs
are operating in the United States.
IPPM offered the first MBA program in Indonesia when the New
Order government started its drastic economic reconstruction in
l967.
"The program was established to anticipate the increasing
demand for top managers. If we did not start the program, the
vacant posts would be occupied by foreigners who already mastered
the management skills," Sukiswo explains.
IPPM's step was followed by the Institut Manajemen Prasetya
Mulya in l982, Institut Pengembangan Manajemen Indonesia in l984
and several state universities and state-owned companies. In
l993, more than 200 institutions had MBA or BBA programs.
Some of the programs by private institutions offer MBAs after
only six months of training. These institutions claim that their
programs are the answer to the limited number of master degree
courses (S-2) offered by state universities.
Former minister of education and culture, Fuad Hassan, is
concerned about the increase in low-quality MBA programs. In
l993, Fuad regulated the MBA programs and banned the involved
institutions from giving MBA degrees to their graduates. The only
title recognized by the government for business administration
degrees is the Magister Manajemen (MM), which is the equivalent
of the MBA degree.
"The problem of the quality of MBA programs occurs everywhere.
In the United States, the program is offered both by reputable
business schools like Harvard, Stanford, Wharton, MIT and
Kellogg, as well as unregistered institutes which only give a
piece of paper in turn of some money," Fuad said.
Local MBA programs at private and state institutes are still
in their early stages. They are still seeking the appropriate
systems applicable to the local business environment.
Many local institutions borrow American curriculum for their
programs.
IPPM, according to Sukiswo, tries to create programs which fit
into the Indonesian business context and culture.
Sukiswo, who is also chairman of IPPM, notes that domestic MBA
programs are too general, while at the same time industrial
progress in the country is moving very fast.
"Our MBA programs should be more specified in line with the
industrial needs, otherwise we cannot catch up with progress," he
adds.
Some institutes have picked up on the trend, concentrating
their programs on specific areas. The Bandung Institute of
Technology holds a graduate management program in technology. The
Bogor Institute of Agriculture runs an agribusiness program. The
University of Indonesia in Jakarta specializes on finance and
banking.
Still, it is easier for Indonesians with foreign MBA diplomas
to find jobs here than graduates from local schools.
Sukiswo explains that by studying abroad, they master foreign
languages which is important to support their careers. The
education systems in the United States and other western
countries offer democratic environments which increases their
self-confidence and independence.