Is An MBA a Waste Of Time and Money?
More than 200,000 people were receiving new MBA degrees in 2010, but a global estimate of total new MBA hires across all companies and all countries was that only 5,000 to 10,000 new MBAs were finding jobs. What that means for the remaining 190,000 to 195,000 new degree holders is that most have huge debt and a new degree that not only has not helped them find a new or better job, but may actually work against them in the search. This is not to say that the MBA degree is just worthless and should be rejected out of hand, however. It only means that potential MBA students must be realistic and selective about the type of MBA degree they choose to pursue.
The Management MBA
This is the standard MBA of the past, and one that formerly worked in graduates’ favor. This form of MBA is very nearly worthless in today’s job market, however. One given about business is that it is increasingly global and increasingly competitive. Generalities worked much better in the past. Today, businesses and recruiters focus much more on specificity. Though a general management MBA can bring value to an organization, the organization itself is far more likely to hire to solve a specific, immediate need. Some holders of this general, “dime a dozen” management MBA degree resort to failing to mention that degree when looking for a job, even as they seek employment to help pay for the crushing student loans that many incurred to finance getting the degree.
Specialized MBA Degrees
Health Care Management MBA
MBA degrees based on more narrow focus are in much greater demand today, both by potential students and by potential employers. An MBA in health care management carries particular promise, especially in the United States where health care is changing rapidly and will continue on that track for many years into the future. A health care management MBA is similar in content to the more traditional management MBA of the past except that it focuses exclusively on health care applications. A health care management MBA can be attractive to hospitals, medical insurance companies and some public sector policy making organizations. Positions likely to require a health care management MBA include hospital senior management positions, health insurance data analysis positions and health economics managers for hospitals and insurance companies.
Information Technology MBA
The primary focus of an information technology MBA is information. Technology changes quickly and there are always more than enough technology aficionados available to create and manage technical applications. In many settings, older and more experienced senior managers are less attuned to the information possibilities that today’s electronic environment offers all types of organizations. All kinds of businesses strive to reduce costs to increase profitability, and well managed information can serve those goals well.
MBA in Human Resources
This is an MBA specialty area that is growing in numbers of graduates and in numbers of organizations seeking those graduates. Traditional management MBA programs always included a Human Resources component, but businesses needing high level HR management often have intricate and detailed benefits packages that get more costly with each passing year. There is much uncertainty in the future state of what traditionally has been seen as full time employment, particularly in the current political environment in the United States.
There are other specialty MBA degrees that carry more promise than the traditional management MBA but still serve a limited market. An example is an MBA in project management. An MBA degree is far from being a waste of time and money, but only if the prospective student chooses a specialty that can be expected to be in demand for several years into the future.
References
Broughton, Philip D. (2011). Which MBA? Think Twice. The Economist.
Byrne, John A. (2010, October 4). Meet the enemy of the MBA. CNNMoney.com.
