Master of Business Administration
A Master of Business Administration (MBA; also Master in Business Administration) is a postgraduate degree focused on business administration.[1] The core courses in an MBA program cover various areas of business administration such as accounting, applied statistics, human resources, business communication, business ethics, business law, strategic management, business strategy, finance, managerial economics, management, entrepreneurship, marketing, supply-chain management, and operations management in a manner most relevant to management analysis and strategy. It originated in the United States in the early 20th century when the country industrialized and companies sought scientific management.[2]
"MBA" redirects here. For other uses, see MBA (disambiguation).
Some programs also include elective courses and concentrations for further study in a particular area, for example, accounting, finance, marketing, and human resources, but an MBA is intended to be a generalized program. MBA programs in the United States typically require completing about forty to sixty credits (sixty to ninety in a quarter system), much higher than the thirty credits (thirty-six to forty-five in a quarter system) typically required for degrees that cover some of the same material such as the Master of Economics, Master of Finance, Master of Accountancy, Master of Science in Marketing and Master of Science in Management.
The MBA is a professional and terminal degree.[3][4] Accreditation bodies specifically for MBA programs ensure consistency and quality of education. Business schools in many countries offer programs tailored to full-time, part-time, executive (abridged coursework typically occurring on nights or weekends) and distance learning students, many with specialized concentrations.
An "Executive MBA", or EMBA, is a degree program similar to an MBA program that is specifically structured for and targeted towards corporate executives and senior managers who are already in the workforce.[5]
In 1883, the Wharton School at the University of Pennsylvania in Philadelphia, the first school of business
in the United States, was established through a donation from Joseph Wharton.[4]
In 1900, the Tuck School of Business was founded at Dartmouth College[6] conferring the first advanced degree in business, specifically, a Master of Science in Commerce, the predecessor to the MBA.[7]
In 1908, the Harvard Graduate School of Business Administration at Harvard University established the first MBA program, with 15 faculty members, 33 regular students and 47 special students.[8][9] Its first-year curriculum was based on Frederick Winslow Taylor’s scientific management.
The number of MBA students at Harvard increased quickly, from 80 in 1908, over 300 in 1920, and 1,070 in 1930.[10] At this time, only American universities offered MBAs. Other countries preferred that people learn business on the job.[10]
Other milestones include:
The MBA degree has been adopted by universities worldwide in both developed and developing countries.[27]
Accreditation
United States
Business school or MBA program accreditation by external agencies provides students and employers with an independent view of the school or program's quality, as well as whether the curriculum meets specific quality standards. Currently the three major accrediting bodies in the United States are:
Programs
Full-time MBA programs normally take place over two academic years (i.e. approximately 18 months of term time). For example, in the Northern Hemisphere, they often begin in late August or early September of year one and continue until May or June of year two, with a three to four-month summer break in between years one and two. Students enter with a reasonable amount of prior real-world work experience and take classes during weekdays like other university students. A typical full-time, accelerated, part-time, or modular MBA requires 60 credits (600 class hours) of graduate work.
Accelerated MBA programs are a variation of the two-year programs. They involve a higher course load with more intense class and examination schedules and are usually condensed into one year. They usually have less downtime during the program and between semesters. For example, there is no three to four-month summer break, and between semesters there might be seven to ten days off rather than three to five weeks vacation. Accelerated programs typically have a lower cost than full-time two-year programs.
Part-time MBA programs normally hold classes on weekday evenings after normal working hours, or on weekends. Part-time programs normally last three years or more. The students in these programs typically consist of working professionals, who take a light course load for a longer period of time until the graduation requirements are met.
Evening (second shift) MBA programs are full-time programs that normally hold classes on weekday evenings, after normal working hours, or on weekends for a duration of two years. The students in these programs typically consist of working professionals, who can not leave their work to pursue a full-time regular shift MBA. Most second shift programs are offered at universities in India.
Modular MBA programs are similar to part-time programs, although typically employing a lock-step curriculum with classes packaged together in blocks lasting from one to three weeks.
Executive (part-time) MBA (EMBA) programs developed to meet the educational needs of managers and executives, allowing students to earn an MBA (or another business-related graduate degree) in two years or less while working full-time. Participants come from every type and size of organization – profit, nonprofit, government – representing a variety of industries. EMBA students typically have a higher level of work experience, often 10 years or more, compared to other MBA students. In response to the increasing number of EMBA programs offered, The Executive MBA Council was formed in 1981 to advance executive education.
Full-time executive MBA programs are a new category of full-time one year MBA programs aimed at professionals with approximately five years or more. They are primarily offered in countries like India where the two-year MBA program is targeted at fresh graduates with no experience or minimal experience. These full-time executive MBA programs are similar to one year MBA programs offered by schools like Insead and IMD.
Distance learning MBA programs hold classes off-campus. These programs can be offered in a number of different formats: correspondence courses by postal mail or email, non-interactive broadcast video, pre-recorded video, live teleconference or videoconference, offline or online computer courses. Many schools offer these programs.
Blended learning programs combine distance learning with face-to-face instruction.[32] These programs typically target working professionals who are unable to attend traditional part-time programs.[33]
MBA dual degree programs combine an MBA with others (such as an MS, MA, MEng, or a JD, etc.) to let students cut costs (dual programs usually cost less than pursuing two degrees separately), save time on education and to tailor the business education courses to their needs. This is generally achieved by allowing core courses of one program to count as electives in the other. Some business schools offer programs in which students can earn both a bachelor's degree in business administration and an MBA in five years.
Mini-MBA is a term used by many non-profit and for-profit institutions to describe a training regimen focused on the fundamentals of business. In the past, Mini-MBA programs have typically been offered as non-credit bearing courses that require less than 100 hours of total learning. However, due to the criticisms of these certificates, many schools have now shifted their programs to offer courses for full credit so that they may be applied towards a complete traditional MBA degree. This is to allow students to verify business-related coursework for employment purposes and still allow the option to complete a full-time MBA degree program at a later period if they elect to do so.
Admissions criteria
Many programs base their admission decisions on a combination of undergraduate grade point average, academic transcripts, entrance exam scores (for example, the GMAT or the GRE test score), a résumé containing significant work experience, essays, letters of recommendation, group discussions, and personal interviews. Some schools are also interested in extracurricular activities, community service activities, or volunteer work and how the student can improve the school's diversity and contribute to the student body as a whole.
The Graduate Management Admission Test (GMAT) is the most prominently used entrance exam for admissions into MBA programs. The Graduate Record Examination (GRE) is also accepted by almost all MBA programs in order to fulfill any entrance exam requirement they may have.[34] Some schools do not weigh entrance exam scores as heavily as other criteria, and some programs do not require entrance exam scores for admission. In order to achieve a diverse class, business schools also consider the target male-female ratio and local-international student ratios. In rare cases, some MBA degrees do not require students to have an undergraduate degree and will accept significant management experience in lieu of an undergraduate degree. In the UK, for example, a Higher National Diploma (HND) or even Higher National Certificate (HNC) is acceptable in some programs.
Depending on the program, type and duration of work experience can be a critical admissions component for many MBA programs.[35] Many top-tier programs require five or more years of work experience for admission.[36][37]
MBA admissions consulting services have been increasingly used by prospective MBA applicants to improve their chances of admission. They are most common in the U.S., with as many as one-quarter of applicants using these services in 2016,[38] though they have been gaining popularity elsewhere, including India[39] and Canada. Consultants can provide basic coaching including help with program selection, mock interviews, and essay proofreading, though some will provide other services like writing essays from scratch. The use of consulting services is frowned upon by many business schools' admissions committees, and applications can be hurt by looking like they were written with a consultant, such as by having a high level of writing compared to the candidate's speech or not appearing unique. Some also express concern that they give an unfair advantage to students who can afford the services' high costs.[40][41][42]
Honor societies recognize individuals for high achievement in MBA programs. These honor societies include:
An MBA prepares individuals for many types of careers. According to a survey by the Graduate Management Admissions Council, 64% of year 2012 MBA graduates used their MBA to change careers.[59] Some of the more common jobs an MBA prepares one for include:
Since 1967, publications have ranked MBA programs using various methods.[82] The Gourman Report (1967–1997) did not disclose criteria or ranking methods,[83] and these reports were criticized for reporting statistically impossible data, such as no ties among schools, narrow gaps in scores with no variation in gap widths, and ranks of nonexistent departments.[84] In 1977 The Carter Report ranked MBA programs based on the number of academic articles published by faculty, the Ladd & Lipset Survey ranked business schools based on faculty surveys, and MBA Magazine ranked schools based on votes cast by business school deans.[82]
Today, publications by the Aspen Institute, Business Week, The Economist, Financial Times, Forbes, Quacquarelli Symonds, U.S. News & World Report, and the Wall Street Journal make their own rankings of MBA programs. Schools' ranks can vary across publications, as the methodologies for rankings differ among publications:
The ranking of MBA programs has been discussed in articles and on academic websites.[96] Critics of ranking methodologies maintain that any published rankings should be viewed with caution for the following reasons:[82]
One study found that ranking MBA programs by a combination of graduates' starting salaries and average student GMAT score can approximately duplicate the top 20 list of the national publications, and concluded that a truly objective ranking would use objective measures of program quality and be individualized to the needs of each prospective student.[82] National publications have recognized the value of rankings against different criteria and now offer lists ranked different ways: by salary, GMAT score of students, selectivity, and so forth. While useful, these rankings have yet to meet the critique that rankings are not tailored to individual needs, that they use an incomplete population of schools, may fail to distinguish between the different MBA program types offered by each school, or rely on subjective interviews.
Criticism
Articles have been written about public perceptions of the crisis, ranging from schools' acknowledgment of issues with the training students receive[98][99] to criticisms of the MBA's role in society.[100][101] After the financial crisis of 2007–2010, the media raised questions about the value and content of business school programs. Prior to the financial crisis, graduates had reportedly tended to go into finance after receiving their degrees.[98] As financial professionals are widely seen as responsible for the global economic meltdown, anecdotal evidence suggests new graduates are choosing different career paths.[102] Deans at top business schools have also acknowledged that media and public perception of the MBA degree shifted as a result of the financial crisis.[99]