What is an MBA?
How it all started
The Master of Business Administration (MBA) formula was established in the US early in the twentieth century and survived largely unchanged well into the 1950s — two years of full-time study aimed at giving new graduates basic preparation for life in the corporate world.
The formula included 'foundation' units (accounting, business statistics, economics) delivering quantitative skills followed by integrative studies in business strategy, general management and the like, and then electives to provide some focus on particular skills or industries.
After the Second World War, the MBA went global, as admiration of US 'know-how' reached its zenith. From the 1960s, the MBA assumed in Europe the semi-cult status reached earlier in the US. There are now around 2500 MBA programs offered by more than 1300 universities and management colleges in 126 countries worldwide.
The MBA today
Australia was slow to join the rush, offering its first full-time MBA program in 1963, but is making up for lost time. There are over 35,000 MBA enrolments in Australia today, and the numbers are much greater if we include those in MBA pathways (graduate certificate and graduate diploma programs).
However, very few of the 90 plus Australian MBAs on offer have maintained the original format exclusively. Nowadays, there are five ways of studying the MBA, although not all programs offer each mode of study. They include full-time, part-time, external (distance education), via the internet, and mixed mode — a combination of external and on-campus study, usually involving face-to-face work through special intensive sessions of a week or more in duration.
What does it involve?
The curriculum of the MBA remains fairly consistent across different institutions. Most still offer the all round training in various business disciplines that has been the hallmark of the MBA since its inception. In addition, more MBAs now focus on teaching ‘soft skills’ such as group dynamics and human communication. Projects and assignments are undertaken by groups as often as by individuals, providing training in teamwork as well as material for analysis of group processes.
However, while some practising managers are looking for the kind of general, comprehensive training traditionally provided by the MBA, many want to get down to the specifics of their present or future job. For this reason, many MBAs now offer specialisations including logistics management, human resource management, health services management, accountancy, agribusiness, association management, local government and more.
Getting in
Only a few Australian MBAs require a Graduate Management Admission Test (GMAT) score for all candidates. Generally this is used as an optional extra or for those who do not meet other academic requirements (e.g. no previous degree). Most offer a pathway entry option via a graduate certificate or diploma.
However, the market has also adjusted to the needs of senior managers, many of whom joined the workforce before university-level study was common. 'Executive' MBAs demand senior management experience rather than academic qualifications, and charge a top dollar for heavily customised programs which emphasise interaction with peers and senior academics, and organise study into bite-sized intensive sessions and work-based projects.
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