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

		Jaap de Jonge Editor, Netherlands
	The Value of an MBA for Leaders and Managers Thanks for sharing this, Paula. Good list of the s...

		nan zeng Project Manager, China
	The Value of an MBA Depends on the Candidates' Education Background The Pros/Cons vary depending on the education back...

		Molokanova Professor, Ukraine
	The Value of MBA Depends on the Type of Education @Jaap de Jonge (Editor): It all depends on the typ...

		Tom Wilson HR Consultant, United States
	Careerism versus Servant Leadership The Servant Leadership model of the Gospel of Mark...

		Luisa Pineda Martinez Guatemala
	Going or not to Going for an MBA Good morning to all. I recommend this article for ...

		Tom Wilson HR Consultant, United States
	Recommendation for MBA @Luisa Pineda Martinez: I don't have an MBA, but ...

		Collins Director, New Zealand
	MBA is an Intellectual Marathon The MBA is a pressure cooker. Whether you do it fu...

		Paula Kokare Project Manager, Switzerland
	Overall Value of MBA Depends on Reasons for Enrolling Thank you very much everyone for interesting comme...

		Paramathmuni srinivas Kumar India
	Process to Improve on Awareness Levels Conceptual exposure for the first time to differen...

		Jaap de Jonge Editor, Netherlands
	MBA versus 12manage I could not resist to compare 12manage with an MBA...

		Jesus Perez ibarra ICT Consultant, Mexico
	MBA versus 12manage I'm agreeing with @Jaap de Jonge, the MBA encourag...

		Jagdish B Acharya Consultant, India
	MBA is Becoming a Rat Race I talk about India.. Before independence it was th...

		Mrs. Sayran Ghafuri Coach, Iraq
	The First Business Schools According to Wikipedia, the first business school ...

		Molokanova Professor, Ukraine
	The Value of an MBA Depends on the Mental Environment The overall value of an MBA obviously depends a lo...