Why An Mba

Why an MBA?

University of Phoenix

August 31, 2003

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Why an MBA?

This paper will examine the rise of MBA programs in the last few years. It will look critically at their impact on the work force and the effect they have on the educational and business community.

The need for higher education is a goal that many professionals aspire to and in this high tech age the access to higher education is much greater than in the past. There are countless institutions offering Bachelors, Masters and PHDs for the busy working professional. These programs, in particular the on-line versions, offer a host of advantages that the traditional programs do not offer. The choices now are varied and complex. Choosing the right program is a process that needs a fair amount of research, time and effort.

This paper seeks to examine the rise of the MBA program, the benefits of an MBA and why I choose to do my MBA on-line as opposed to on site.

Background:

The working professional is becoming a very coveted market for educational institutions. The fact that governments and the public are demanding to know where public money is being used and what it is being used for is now a contributing factor, in my mind, to the rise of degree programs for professionals. In 1997, I worked for the Queen's University Executive MBA program as its Operation Coordinator. During one of my first days there I asked one of the program managers why the university was so aggressive in its recruitment of professional managers for its Executive Development Centre and its Executive MBA Programs? Given governments hesitancy to spend money these days the onus is now on universities and colleges to be more business oriented and be proactive in benefiting their bottom line was the answer I was given. In his book Busting Bureaucracy to Reclaim Our Schools author Stephen B. Lawton states that "bureaucracy is strangling our schools. Many parents believe so, in light of the costs, complexity and rigidity of Canada's educational system. Schools seem to be performing their tasks educating our children--poorly as high levels of illiteracy, innumeracy and dropping out testify." The bureaucracy of the educational system in Canada is seen as the blame for the ills of the system. Two things are being said here: The educational system needs to be more flexible and imaginative and secondly the educational system will have to find its own way of funding that flexibility and need for imagination. The reality here is that education, like any other business, must market itself, find its niche market and exploit that market in order to be viable as a business. Education is now a business and in business you must find your target market. It is my opinion that the increase in programs for working professionals and more emphasis on the non- traditional methods of education is industry's response to that challenge.

On the business side the need for managers who are more generalist in nature is a concern for any organization. Specialization in managers is a thing of the past. Today's managers must be able to adapt and work comfortably in all spheres of the organization. According to the International Education web site "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 maximize their particular contribution, and for whom better performance in a current job may be as important as early ambitions for promotion." One can substitute student for professional because more than likely it's a professional manager enrolled in the MBA course as opposed to the recent college graduate of the past.

What is the benefit to the organization and business?

Benefit:

The International Education Web Site states that over 90,000 people graduate with an MBA every year in the United States and it is the most popular business degree distinction. Although the number seems high if we take into account the number of managers in an organization the number is actually small. Among the 75 managers in the centre where I work only 3 possess undergraduate degrees and at the moment I am the only manager pursuing a graduate degree. One of the benefits the MBA brings to any organization is that it brings critical thinking, decision-making and preparation for transition to the next level in potential senior managers. The benefit of problem solving it also brings to the forefront is critical in finding solutions to many of the highly technical issues that managers face on a daily basis.

The most important resource in any organization is its people and organizations are increasingly turning inward when looking for potential senior managers and above. In my own organization, 75% of all managers including myself started as front line technicians or senior technical associates. Rapid expansion accounts for the other 25% which are external hires. The value of internal promotions is a certain loyalty and commitment to the organization. Organizations are recognizing this and are now actively investing in the development of their managers, recognizing that this investment in their people will only reward the organization in the long term. In his article "Why an MBA is important" Peter Calladine states the following, "Many organizations have a structured program for developing key staff. This may include an in-company or consortia MBA program 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 organization 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 organization during the period of study."

The value