Business Schools and MBA - Value, PROs and CONs

Business Schools and MBA - Value, PROs and CONs

Management researcher Yehuda Baruch has analyzed benefits and costs of MBA degrees. He classifies the impacts of an MBA in three categories: the individual level, company level and society as a whole.

INDIVIDUAL

• PROS: The main advantages gained during MBA studies attributable to individual themselves include additional:
  
  1. Knowledge
  2. Skills
  3. Personal competencies
  4. Network of contacts
  5. Prestige attached to gaining the "MBA" title.
• CONS: Individual costs, however, consist of the:
  
  1. Financial investments
  2. Opportunity cost of the time dedicated for the studies.
  3. The value added to individuals already having a first degree made in general management to highly focused professional roles and to high rank executives has been often disputed.

COMPANY

• PROS: Investing in MBAs is seen as utilization and development of their tangible and intangible asset base by organizations in order to achieve their strategic goals. Main advantages gained by organizations from such investments include improvements in:
  
  1. Work quality
  2. Productivity
  3. Promotability of individuals
  4. Leadership capabilities
  5. Overall managerial skills
  6. Employee retention
  7. Customer satisfaction
• CONS: The critique associated with investing in MBAs relate to the fact that:
  
  1. Potential risks can be clearly observed (e.g. low return on investment, employee departure).
  2. Related benefits are mainly intangible in their nature.

Baruch argues that the value added by investments in MBAs to different organizations varies from minimal to very high, depending on the organization's reliance on professional expertise versus a managerial orientation.

SOCIETY

• PROS:
  
  1. Promote managerial competencies which on the aggregate level have been proven to enable more efficient and effective societies
  2. MBAs are responsible for the creation of a large share of all start-ups which represent a source of employment, innovation and tax income for societies.

Source: Yehuda Baruch, (2009),"To MBA or not to MBA", Career Development International, Vol. 14 Iss 4 pp. 388 – 406

		Comments Sort by date Sort by rating Rating
		10 Jaap de Jonge Editor, Netherlands
	The Value of an MBA for Leaders and Managers Thanks for sharing this, Paula. Good list of the strong points and disadvantages of an MBA at these ... Sign up

		5 nan zeng Project Manager, China
	The Value of an MBA Depends on the Candidates' Education Background The Pros/Cons vary depending on the education background of the student. Established leaders or mana... Sign up

		2 Molokanova Professor, Ukraine
	The Value of MBA Depends on the Type of Education @Jaap de Jonge (Editor): It all depends on the type of education. For example, in project management... Sign up

		2 Tom Wilson HR Consultant, United States
	Careerism versus Servant Leadership The Servant Leadership model of the Gospel of Mark is organic to the ethos of West Point and the US ... Sign up

		0 Luisa Pineda Martinez Guatemala
	Going or not to Going for an MBA Good morning to all. I recommend this article for those who are evaluating if it is worth or not to ... Sign up

		0 Tom Wilson HR Consultant, United States
	Recommendation for MBA @Luisa Pineda Martinez: I don't have an MBA, but I can recommend its achievement for anyone. Much e... Sign up

		3 Collins, New Zealand
	MBA is an Intellectual Marathon The MBA is a pressure cooker. Whether you do it full time, or part time while working full time, it ... Sign up

		3 Paula Kokare Project Manager, Switzerland
	Overall Value of MBA Depends on Reasons for Enrolling Thank you very much everyone for interesting comments and discussion. Based on my own review of ran... Sign up

		1 Paramathmuni srinivas Kumar India
	Process to Improve on Awareness Levels Conceptual exposure for the first time to different theories is fine. Also testing for understanding... Sign up

		8 Jaap de Jonge Editor, Netherlands
	MBA versus 12manage I could not resist to compare 12manage with an MBA. Of the mentioned 5 benefits for the individual (... Sign up

		2 Jesus Perez ibarra ICT Consultant, Mexico
	MBA versus 12manage I'm agreeing with @Jaap de Jonge, the MBA encourages your development, improves knowledge, skills an... Sign up

		2 Jagdish B Acharya Consultant, India
	MBA is Becoming a Rat Race I talk about India.. Before independence it was the profession of law which attracted the best brain... Sign up

		1 Mrs. Sayran Ghafuri Coach, Iraq
	The First Business Schools According to Wikipedia, the first business school in the world is ESCP Europe, which had branches in... Sign up

		2 Molokanova Professor, Ukraine
	The Value of an MBA Depends on the Mental Environment The overall value of an MBA obviously depends a lot on the MBA program, the school and the (personal... Sign up