What is a Business School?

Business schools are at a crossroads, and they need to do some serious thinking if they want to continue in the business of business education. Around the world, many questions are already being raised about the real value added by business schools and business school graduates. Some stakeholders are openly asking whether business schools and their graduates have become overheads and are being overplayed.

Business schools need to ask themselves some hard-hitting questions if they want to survive in the long run. One of the most basic questions they must ask is: What is a business school?

Is a business school primarily a money-making business?

One possible answer is that it is simply a business of making money by milking what is easily available. For example, there is a large business opportunity in countries with a young population, where degrees are given high importance, and people are willing to spend money on them. On top of that, in many cases, there is no tax on such income.

Often, when one listens to institutional heads, board members, or owners of such business schools, discussions about turnover and turnover growth come up. There is nothing wrong with being profitable and making money, because for any business or organisation to function, resources are required. However, that should not be the primary driver—especially for a business school.

Is it right for a business school to focus mainly on making money when they themselves teach in classrooms, or should they focus only on profits? Are business schools really walking the talk?

If that is the case, then are business schools only in the business of providing degrees and, at best, some placements?

Is a business school just a placement agency?

Another possible answer is that a business school is essentially a placement agency. It admits students, gives them some education, and helps them find jobs through campus placements. Most of the marketing and communication revolves around placements, almost as if placements are the main business of business schools. In that sense, business schools appear to be glorified placement agencies.

Average packages, highest packages, number of companies visiting the campus, and claims of 100 per cent placements are the main selling points. This raises an important question: Is this really what defines a business school?

The need for honest self-reflection

The author would like to believe, neither of these answers is correct. So what exactly is a business school? As of now, what is the right and honest answer to this basic question ?

It is high time that business schools ask themselves these questions honestly and arrive at the right answers—not just in words, but in both letter and spirit. This will be a great service to students and various stakeholders, the business school itself , and the very idea of business education.

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(This article is written by Dr. Rajesh K Pillania, Professor, Management Development Institute, Gurgaon. This is an opinionated article; EPN has nothing to do with this editorial.)