According to Quintessential Careers's article, "The Master of Business
Administration: Is the MBA Worth the Time, Effort, and Cost?", an
M.B.A. stands for:
"Master of Business Administration degree, granted after one to
two years of graduate-level university study that provides training in
the theory and practice of business management. The MBA is basically a
document that certifies that you have a general competency in all the
major functional management roles you'll find in the modern
corporation. An MBA is a career accelerator across a number of
industries and MBA graduates can usually command higher salaries."
Also, an MBA is:
- "for working professionals who seek to advance their careers to middle or senior management" (Capella University) and
- "individuals who already possess 'real world' experience and seek in-depth knowledge in management and strategy." (Western Governors University).
A panel of writers at
CollegeRecruiter.com
agree that an MBA coupled with relevant work experience is much more
valuable than the degree alone and advise would-be B-school students to
get first some hands-on professional experience under their belt before
pursuing an advanced degree.
UK-based
StudyLink.com concurs: "
In
a worse-case scenario, assuming a graduate had embarked directly onto
an MBA, some employees might consider a 22 year old MBA over qualified
for their graduate trainee scheme, whilst deeming them under qualified
for the senior positions that they have ear-marked for MBA graduates."
Although
B-schools are reporting a decline in applications to MBA programs for the third year in a row, I can see why the MBA is still an important credential. In
BizEd magazine, an article entitled "
The ROI on the MBA"(.PDF format) cites a study done by the Graduate Management Admission Council: "
In
2002, the median full-time MBA student earned $50,000 before obtaining
an MBA ... Immediately after completing the MBA program, that same
student expected to earn $75,000, excluding signing bonus."
The authors conclude that "
over
the past decade, an MBA’s average ROI has been three times the return
on Treasury Bills, ten percent better than triple-A bonds, and four
percent greater than the Dow Jones Industrial Average (DJIA)."
Not too shabby!
Interested in earning an
MBA? Browse through our
Business and
MBA program listings. Have more questions about MBA degrees? Post your questions or comments in the
eLearners Forums!