Wednesday, February 18, 2015

The value of an MBA for The Economist

MBA, The Economist, master, Bussiness schools, Wall Street, schools, degree, University

The value of an MBA

The British magazine The Economist, in one of his numbers from last October, devotes a juicy article to assess the decision to pursue an MBA (as is well known, representative stands for Master of Business Administration or, Castilian, Master in Management companies). This choice, always transcendental to the student or employee, what is more at a time of economic crisis like the present, in which two particularly adverse conditions exist: the greatest difficulty coping with academic costs and also to achieve desired insertion or promotion in the business world.

Despite this, recessionary times, causing a decreased ability to absorb university graduates for the labor market centers tend to be more favorable for schools, which receive a greater demand for training activities. The decision in question is not easy: the two pans of the balance attract great weight content.

With the guarantee given previous evidence, especially if it is a business school belongs to the select group of the top ten, as increasingly used but not always coincide ?? ?? international rankings, individuals may exhibit an MBA degree are more likely to get a job than those who are only in possession of a degree, and usually receive a substantially higher salaries. On the international scene first level, employers pay to have an MBA, on average, twice as a person without this diploma.

On the other hand, who credited this degree

On the other hand, who credited this degree recorded an average increase in their previous remuneration graduation 72%. According to information available, graduates of some of the most prestigious business schools find work within three months following the completion of the MASTER with a salary of around 90,000 euros per year. In recent years, about 40% of graduates from top US business schools found accommodation on Wall Street, where they applied ?? in some cases with well known consequences ?? the techniques learned in academic centers, which, until now, according to some people, have suffered from a deficit in the effective transmission of the principles of professional ethics and accountability.

These important advantages potentially achievable require, however, incur a negligible cost: annual tuition price rises for one or two years, in one of the elite business schools mentioned, about 70,000 euros, to which should be added to the cost of travel, accommodation and meals, plus the rent (and work experience) that stops receiving (purchase) during the executive training. Certainly a significant investment, not available to anyone, and without having to forget, of course, the normally arduous selection process. The programs of public and private grants are an important corrective mechanism of market failure, caused by economic constraints, the accessibility of students with high training.

However, for someone who, for whatever reason, see gripped by insurmountable barriers of different nature, the situation described may seem to be like a fairytale frustrating. The choice of virtual learning through the Internet can provide a non-negligible substitute, and the possibility of going to face courses on local or regional schools. The costs of all types, down quite substantially, although prospects achievable emoluments, that in any case, will always be limited by the scope of the labor market in question, as opposed to the universe of large multinational corporations.

Additionally, on the premise of the usefulness of the training activities, whether under a master of business or outside it, would do some thinking. So, we should not overlook that also developing a work activity in a suitable environment, and training associated with employment are components of the process of increasing human capital that can be of great value in some cases comparable to shares specific in academia.

In this same vein, as experience is responsible for accrediting numerous examples (without the need to mention the cases of large underserved entrepreneurs titling MBA), the realization of a particular master does not have to be a necessary nor sufficient for good professional performance: though always valuable contribution elements is not required for any position or possession is a guarantee of efficiency. However, some studies show the positive impact on productivity and profitability of companies, the application of management techniques taught in business schools.

In a globalized knowledge society, where their sources are available to everyone, be questioned why they tend to widen the gap between the elite centers and the rest, going far beyond what would supposedly justified by an uneven distribution of talent (teacher and student).

If a large part of the differences can be attributed to the implementation of organizational schemes, management methods and unpatented nor unique methodological approaches, taking into account available resources, are the foundations could not be created for the medium (or, even short) run, it could be offered in a local business school, chosen as reference by the institutions, comparable teaching practice at least means international standards?

Undoubtedly, it would be an important element regarding the objective of strengthening the position of Malaga as a city of knowledge, one of the traditional aspirations of strategic planning of the city.