Why
an MBA is important
The
Masters in Business Administration is the premier,
and most popular, business qualification. There are
currently around 22,000 people in the UK studying
for this degree at over 120 universities and business
schools and the MBA is equally popular on continental
Europe. In the USA over 90,000 graduate with an MBA
each year.
Generalist
skills
People at the beginning of their careers, irrespective
of industry sector, tend to specialise. Most will
concentrate on their particular role, such as sales
or marketing. Some focus on gaining a professional
qualification, such as Chartered Engineer or Accountant.
If successful they can rapidly develop to become respected
professionals in one area of expertise. These areas
are, however, typically of a specialist nature and
a career move to a new organisation may not offer
enormous career development opportunities or increased
responsibilities.
The MBA is essentially a generalist qualification
designed to widen the student's horizon in order to
take account of all the major functions of a business
as well as their interactions in practice. Because
its focus is general rather than specialist, the MBA
is targeted at those who can make a contribution to
strategy. They may have general management ambitions,
but not necessarily. They may also be senior specialists
who need a rounded view of an enterprise in order
to maximise their particular contribution, and for
who better performance in a current job may be as
important as early ambitions for promotion. MBAs come
from almost every conceivable background in terms
of first degree, functional role, industry and enterprise
including charities, government bodies, health, education
and other not for profit organisations.
The
student perspective
Unlike other masters degrees the MBA is both a postgraduate
and post-experience qualification. It is not appropriate
for the recent graduate who would be better advised
to either defer MBA study until a later date, or undertake
a specialist master's degree.
The
MBA aims to build on the foundations of work experience
and, by providing new skills and knowledge, to enable
the student to make the transition to a higher level
of responsibility. MBA students typically will have
made significant career progression for a number of
years after their first degree. In many cases they
will have gained a professional qualification and/or
a specialist masters degree. They should have an in-depth
knowledge of either a function or role and a specific
industry sector. But they will typically have limited
prospects of further career progression as they are,
essentially, specialists, i.e. 'the accountant', the
HRM manager, etc.
The
degree and value of professional expertise and knowledge
to be found among the students on a typical MBA programme
cannot be underestimated and the quality of the student
body is an excellent indicator of the quality of the
MBA programme itself. Students often report that half
of what they have learnt has come from their well-qualified
fellow students who are able to bring their experience
of industry to bear in classroom and assignment situations.
Fellow students will also become a career-long, invaluable
networking asset. Employers and students alike should
be wary of schools, which accept significant numbers
of recent graduates as the entire learning experience
on such a programme is seriously compromised.
The
MBA does not pretend to make students experts in all
of the various functions of an organisation. What
it does is to provide sufficient knowledge for them
to understand the various facets of an organisation
so as to formulate successful strategies. It also
instils a great deal of confidence. In effect the
MBA is capable of being a general manager with the
potential to reach a position at board level.
In
some industries the MBA is now not so much a desirable
attribute, but an essential qualification. Most notably
this is the case in consulting and finance. To progress
in these industries, not having an MBA is a huge disadvantage.
In many companies it is not only a required qualification
but they also have a limited list of schools from
which they will recruit. Surveys find that increasing
numbers of finance directors are MBAs. A glimpse at
the Association of MBAs handbook of members shows
MBAs in just about every conceivable area of employment.
No
sector now is exempt from the influence of the MBA.
Over the last decade the MBA has firmly established
itself in the non for profit sector: health, charities,
local government, the civil service, education, law
and even church management. The latest trend appears
to be the popularity of so-called 'dot-coms' and entrepreneurship.
A disproportionate number of these areas are the brainchild
of an MBA. In some cases, the have been ex-students
who have dropped-out to launch a successful project
whilst at business school.
The
employers' perspective
The popularity of the MBA with employers is that it
is a recognised 'currency' in the human resources
marketplace. Employers know the value of the qualification
and what they should be able to expect from an MBA,
irrespective as to whether they studied in North America,
Europe or elsewhere. They also recognise the commitment
shown by MBAs in investing heavily in their careers.
Such candidates are likely to be dynamic self-starters
who will be an asset to any organisation.
Many
organisations have a structured programme for developing
key staff. This may include an in-company or consortial
MBA programme and in some cases it might even include
sending employees to business school in order to complete
a one or two-year MBA study. In most cases they look
to other modes of study. It is significant, that in
the UK, over 50% of all part-time and distance learning
students are fully sponsored by their employers. A
further 30% receive an element of support from their
employer. This is because the organisation has much
to gain from MBA sponsorship. It benefits from the
newly acquired expertise, from the enthusiasm of its
sponsored personnel and from retention of key personnel.
Sponsored employees are unlikely to leave the organisation
during the period of study.
When
it comes to full-time programmes employers tend to
be selective regarding the school. They often have
an actual, or mental, list of schools, which they
find acceptable for recruiting purposes. Simply having
an MBA is not a passport to a lucrative and successful
career in itself. For those fortunate enough to obtain
a place at a good school there is the security of
knowing that recruiters look for similar qualities
in their candidates as the business school itself.
So acceptance into a good school is a reliable indication
to the recruiter that he/she is dealing with a quality
graduate. But not all schools fall into this category.
An
MBA from a good school will certainly open many doors,
but one from the wrong school may have the opposite
effect. But even in the cases of good schools, possession
of an MBA cannot, in itself, guarantee career progression.
Only successful utilisation of newly acquired MBA
skills and expertise can achieve this end. Research
undertaken by the Association of MBAs clearly demonstrates
that MBAs do exactly this. The MBA offers the ambitious
manager a wider range of career opportunities and
the chance of both increased responsibilities and
a higher salary.
PETER CALLADINE
Educational Services Manager
Association of MBAs
