Many people seeking to further their careers find themselves helplessly staring between their checkbooks and the hefty price tag of an Mast of Business Administration degree, which can cost tens of thousands to hundreds of thousands of dollars, depending on the school. The combination of time, money and stress involved in earning an MBA has professionals across the globe asking one question: “Is an MBA worth it?”
The Argument Against
There are many who would unequivocally answer this question with a resounding “yes,” but why? The most common argument is that it makes you more attractive to prospective employers and will put you on the fast track to that coveted high-level executive position, but Melissa Korn of the Wall Street Journal reports that as of September of last year, barely over 40 percent of the sitting CEOs of America’s top corporations have MBAs. Is telling people that the MBA is necessary for modern success prophetic of the workplace of the near future, or is it outdated thinking?
Henry Mintzberg, Cleghorn Professor of Management Studies at McGill University in Montreal, Canada, believes that the degree may never have been useful in the first place. He has become well-known for telling anyone who will listen that pursuing an MBA is a waste of time for those serious about becoming successful managers. He argues that MBA programs focus too much on short-term bottom lines and sketchy projections and not enough on ethics and sustainability. The epic failure of Enron is an oft-cited exemplification of this argument.
Mintzberg also condemns business schools for profit mongering by catering to what they think businesses want to see in curricula, instead of what actually works. In a recent interview with Entrepreneur Magazine, he backed his argument by reciting a recent statistic that showed 14 of Harvard University’s top 19 MBA graduates were either barely treading water, fired or had driven their companies into the ground.
The Argument For
Thomas Robertson, Dean of University of Pennsylvania’s Wharton School of Business, argues, on the other hand, that MBA programs teach professionals the basic skills that they need to succeed in business. He says that not attending business school and learning on the fly would be extremely inefficient. He also argues that the world’s top business schools are always innovating new ways to educate.
The MBA is no longer just a common function of a business executive’s resume. As job positions continue to become more dynamic, professionals in the IT sector are increasingly considering the pursuit of an MBA to strengthen their job position. Maridan Harris, Director of IT at Phillips, has backed this idea, telling Network World that with more IT jobs focusing on strategic analysis and efficiency, a bottom-line-focused MBA degree is just what they need to enhance productivity.
There is one sector that most people, including Mr. Mintzberg, agree needs more MBAs, and that is the finance sector. Mintzberg himself has argued that the technical analysis skills essential for finance positions are best taught in MBA programs.
The everlasting debate over whether or not an MBA is worth pursuing has an answer. Unfortunately, the answer is simply “it depends.”
Byline
Reggie Pickett is a freelance writer who focuses on business, education, finance and accounting. The business world is a fascinating arena; readers looking for a new career in the business field should check out the business analyst jobs with moneyjobs.com.
Image credit goes to metropolitan-school-of-management.