Are MBA qualifications worth the trouble and expense?

Why study an MBA?

An MBA offers skills not ordinarily mastered on the job, such as financial, statistical, and managerial economics. It will show how different functions operate and are related, how companies in different industries compete, and how they manage in different environments.

A good MBA program does all this by being, in part, a boot camp for managers. Students are drilled in the basics, are forced to crunch through massive amounts of material, must cooperate and compete with a broad range of colleagues, and live life at a fast pace. The way MBAs are run offers good training in and of itself; students not only gain knowledge but they also learn how to handle a lot of work and pressure.

However, the graduate gains more than just a set of skills and attitudes. The reputation and connections of the school awarding the MBA, along with a hard-working career services department, will usually help him or her gain an appropriate job. The school's alumni network and any professional contacts will be long-term assets, as will the MBA itself on any curriculum vitae.

The benefits

There is no doubt that for many managers, additional qualifications are becoming highly desirable — even essential — to survival and success in an increasingly competitive labour market. The MBA has become a prerequisite for many of the world's most desirable jobs, as firms in many industries seek people with the managerial skill and understanding necessary to drive their business forward.

Plus there is no doubt that a management qualification can pay off. Postgraduate business and management courses generate some of the best labour market results of any of our 30 fields of study, with employment at 90 per cent and average starting salaries of $80,330 in 2006.

The cost-benefit analysis

Although the benefits can be terrific, remember that employment and salary figures vary widely from one institution to another. (Full details are available in The Good Universities Guide to MBA and Management Courses 2010 ) .

Plus, benefits, of whatever kind, have to be set against costs. Like benefits, costs come in financial and other forms, and vary widely. Courses vary in length, study hours required and price. Individuals vary in the amount of support they can get from employers and family, and in eligibility for tax deductions on further study.

In this, as in any other business decision, you should also take account of opportunity costs. Is further study essential or optional? If optional, are there other and better ways of spending time and money to achieve your objectives?

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