MBA HR vs. MBA Finance: Making the Right Career Choice

A Master in Business Administration (MBA) is one of the most prestigious management courses in India these days. Although the programme offers exciting career advancement opportunities in the corporate sector, choosing the right MBA specialisation is often a daunting task.

MBA in Human Resources (HR) and MBA in Finance are two popular career branches in the field of management. A degree in MBA HR makes the students capable of administering the largest capital of an organisation, i.e., human capital. On the other hand, a degree in MBA Finance will allow students to pursue a career dealing with the financial aspects of a business, such as risk management, valuation of funds, and accounting. Today, in this blog, we shall explore the nuances of each course and help you make the right career choice between an MBA in HR and an MBA in Finance.

MBA HR vs. MBA Finance: Course Duration and Eligibility

Both the MBA specialisations are post-graduate programmes spanning a duration of 2 years, divided into 4 semesters. The eligibility criteria to enrol in these programmes include 50% aggregate from a bachelor’s degree, followed by a valid score in the CAT, MAT, CMAT, XAT, NMAT, or GMAT. Additionally, students may have to pass the college-specific entrance exams, which include a written test, essay writing, presentation, and personal interview. Applicants who have prior work experience are often given more preference during MBA admissions at several institutions.

MBA HR vs. MBA Finance: Curriculum

Both MBA HR and MBA Finance offer a blended curriculum of theoretical and practical exposure. Hence, students have to study the core domain subjects, followed by internships, case studies, and industrial projects. The curriculum of MBA HR helps students develop knowledge and skills such as communication, negotiation, conflict resolution, and leadership. On the other hand, the MBA Finance curriculum imparts knowledge and skills such as financial analysis, data interpretation, and modelling. Let us see some of the core subjects that are covered in each field:

The core subjects in an MBA HR course include human resource management, organisational behaviour, compensation and benefits, training and development, talent acquisition, performance management, labour laws and industrial relations, HR analytics, employee relations, HR information systems (HRIS), leadership and change management, and others.

The core subjects in an MBA in Finance include financial management, investments and portfolio management, corporate finance, financial accounting, financial modelling, risk management, financial markets and institutions, derivatives and fixed income, managerial accounting, financial statement analysis, international finance, and others.

MBA HR vs. MBA Finance: Career Opportunities

Upon graduation, both MBA HR and MBA Finance professionals can work across various industries, however, the latter can access exciting opportunities in finance-related sectors such as banking, investment, and corporate finance firms. Let us see some of the high-demand career opportunities in each field:

Career Prospects in MBA HR
With their strong understanding of human resource management, MBA HR professionals play an important role in fostering employee engagement and ensuring legal and ethical HR practices across different industries. Following are some of the key roles in this domain:

HR managers oversee all aspects of human resources within an organisation, such as recruitment, employee relations, performance management, compensation and benefits, and others. Training and development managers develop and implement training programmes to enhance employee skills and knowledge. Talent Acquisition Recruiters identify and recruit top talent for an organisation. Employee relations specialists mediate conflicts, address employee grievances, and promote a positive workplace culture. Compensation and benefits managers manage employee compensation packages and ensure compliance with labour laws and regulations.

Career Prospects in MBA Finance
MBA Finance graduates are proficient in financial management, investment strategies, and risk assessment, due to which they become key players in optimising an organisation's financial health and performance. Following are some of the key roles in this domain:

The finance manager oversees an organisation's financial operations, such as financial reporting, budgeting, and financial strategy development. Investment bankers advise clients on mergers and acquisitions, capital raising, and financial transactions. Corporate finance managers manage the financial operations of a corporation, such as financial planning, budgeting, and strategic financial decision-making. Portfolio managers oversee investment portfolios for individuals or institutions to maximise returns within defined risk parameters. Risk managers identify, assess, and mitigate financial risks for organisations, such as market risk, credit risk, and operational risk. The finance manager oversees an organisation's financial operations, such as financial reporting, budgeting, and financial strategy development.

MBA HR vs. MBA Finance: Final Thoughts

An MBA is a renowned career choice that is structured to make individuals ‘corporate ready’ through theoretical learning as well as practical approach-based education. Both the fields of HR and Finance offer lucrative career opportunities and impart critical soft skills to students. Organisations require professionals who can manage their employees as well as plan and forecast the financial resources of the firm. A career in HR allows the students to master the skills of leadership, communication, conflict resolution, and negotiation, whereas a career in finance allows the students to develop quantitative, analytical, and risk management skills. Therefore, students must carefully align their interests, skill sets, and career aspirations before making the final decision!