Impact of MBA on Career Advancement - Literature review Example

IMAPACT OF MBA ON CAREER ADVANCEMENT By Literature Review Introduction Education is an essential component ofindividual advancement and life achievement. The Masters of Business Administration (MBA) degree, is a broadly acknowledged accomplishment and achievement in the business administration globally (Baruch & Peiperl, 2000). It is considered the most effective and efficient way towards achieving prompt and improved management skills and knowledge for the workplace environment, even though, opponents argue that experience is the most appropriate and efficient way to achieving workplace accomplishments and advancement (Baruch & Peiperl, 2000). However, to date there is no known discipline that has contrasted the populace of the MBA graduates (Baruch & Peiperl, 2000). The MBA degree is a crucial tool for career advancement and development. The MBA degree emerged, to a limited extent, to make a base for administrative skills and to give a direction to spreading investigative advances arising from the investigations in the field of business administration (Baruch & Peiperl, 2000). Management is a moderately new scholarly discipline, and no researcher has established yet whether it is an academic measure or not while administration as a career is not similar to management in an aspect. Having MBA is seen by the majority as an identification to the senior administrative posts and a `fast track profession (Baruch & Peiperl, 2000). Imminent understudies are commonly concerned with getting organizational abilities rapidly and productively, and hence `leapfrogging companions and enhancing vocation prospects (Baruch & Peiperl, 2000). Ascher (1984) examined an alumni of four leading business schools in England in the early 1980s that included Bradford, the Manchester Business School, Aston and the London Business School. In that study, the reasons most of the graduates cited for undertaking the MBA included enhanced openings for work, took it by wish to alter professional course, acquire general business information, improve income, experience intellectual stimulation and expand self-assurance (Baruch & Peiperl, 2000, p. 69). Comparable conceivable inspirations were also articulated by Carnall (1992) who argued that, “MBA degrees are seen as a ticket to expanded compensation, upgraded vocation advancement, propelled learning and abilities, and as a prerequisite to joining the upper managerial positions. Luker, Bowers and Powers (1989) also argue that MBA is a good inspiration tool to accomplishing long-term job targets such as finding opportunities for career growth and as a tool for remaining relevant in the job market. Increment in pay can be an alternate essential persuading component for taking MBA (MacErlean, 1993). For instance, Forrester (1986) investigated 1,127 graduates from the London Business of School and found out that after completion of the course, graduates received significant increments in salaries by about 24-45 percent of their initial pay. The assertion by these researchers was also supplemented and reinforced by the works of Schofield who through his surveys and reviews of managers undertaking MBA, found out that in one and half years, 50% of the managers had advanced in their careers while and about 50% of them received promotions to higher levels of management (Baruch & Peiperl, 2000, p. 69). Hawksley (1996) also argues that the most referred to reason for undertaking a MBA was to enhance job openings for work. Studies have taken a gander at the subject of whether a MBA increases the value of a graduate to take up a managerial position or to receive an increment in salary or not. The research of Boyatzis and Renio (1989) demonstrates that after MBA course graduates developed positive skills such as versatility, entrepreneurial and analytical. Nonetheless, no research has provided succinct evidence to demonstrate that after MBA, graduates were better prepared, experienced and skilled to take up managerial position in organisations, thus raising eyebrows on the quality and capability of MBA to prepare undergraduates for managerial positions (Baruch & Peiperl, 2000, p. 70). According to Finney (1996), in the past MBA graduates were few and far between and thus having MBA automatically implied that individuals were assured of top level occupations, particularly if they were picked from central business schools. He goes on to state, “things have now changed, and some industries are demanding that those seeking managerial position both male and female must be MBA holders.” However, from a different angle research has demonstrated that apart from demographic qualities such as age, women with MBA are better placed to be recognised as executives than non-MBA holders (Crittenden, 1996). These assertions are reinforced by (Leeming and Baruch, 1998) who argue that, “Having a MBA can conflict with sexual orientation segregation for administrative positions, by presenting the graduates to be seen as a qualified professional.” The articulations bring us to the foundations of the idea and the goals of taking an MBA course. MBA studies first began in the US at the start of the 20th century, as pioneers, for example, Alfred Sloan attempted to bring experimental studies and expanded polished skills in the study of management. The UK took action, accordingly just in the second half of the 20th century by establishing the Manchester Business School and the London Business School (Baruch & Peiperl, 2000, p. 70). However, other European nations such as German never recognised the significance of MBA as a professional qualification and thus never established business schools for the program. Nevertheless, the North Americas, the Western Europeans and the Far East people to date recognise and associate MBA to professional, managerial (Baruch & Peiperl, 2000, p. 70). MBA can likewise present more mobility to the holders. However, Dougherty, Dreher and Whitely (1993) argues that the ease of mobility of MBA holders within occupations has not been researched and documented. They go on to say that, for this reason, MBA can be perceived as tool in itself that enables managers to shift from one occupation to another and thus this would be the primary goals were graduates study MBA. In entirety, the main goal of studying MBA would thus be to add quality to graduates by providing them with business-related learning skills and administrative attitudes that enhances their employability, accreditation, professional success and compensation for career development (Baruch & Peiperl, 2000). Conversely, MBA enables holders to join valuable networks of associated organisations and alumni as well as providing a career break for full-time workers to reflect on individual goals and paths (Baruch & Peiperl, 2000). In essence, MBA is a key to career progression tool that enables individuals to be considered for top management positions in organisations (Turner, 1999). It has been argued, for instance, that some industries and organisations have made it a pre-requisite that those aspiring to join managerial positions must be in possession of MBAs. Notwithstanding MBA also opens up new opportunities to the holders as it enables them to explore a variety of employment opportunities at their disposal, thus enhancing their career profile (Baruch & Peiperl, 2000). Essentially, most professionals opt for private practice, especially consultancy services once they have obtained that MBA. It is through accreditation that clients gain faith and trust individuals’ services. Thus, MBA presents individuals to society as qualified people who can be depended upon because they have been accredited (Kokemuller, n.d.). It is also widely believed that people go for MBA degree to receive pay increases while others study MBA to enhance their studies not only for financial gains but also to develop their personal skills and knowledge (“How doing an MBA”, n.d.). The MBA program is also very involving; thus it enables holders to develop numerous personal attributes such as discipline, time keeping, and aggressiveness among other traits. Studying a MBA degree is an opportunity for a person to have freedom to switch to his/her career of choice (“How doing an MBA”, n.d.). The MBA program equips learners with general business skills that enable them to work flexibly anywhere in an organisation without much difficulties. Ideally, MBA provides holders a competitive edge over their counterparts whenever they are applying for job openings as organisations will tend to prefer MBA holders since they are believed to be more knowledgeable and thus will bring new skills and ideas to the organisation, which can help it achieve its long-term goals (Boyatzis and Renio, 1989). Disadvantages of MBA on Career Advancement Despite the benefits associated with MBAs, there are also drawbacks associated with this accreditation. To begin with, MBA is very costly to undertake. It cost approximately $45,000- $130,000 for tuition fees, in addition to, other auxiliary charges for textbooks accommodation and many others (Baruch & Peiperl, 2000). The expense incurred to complete this course is not affordable to everyone who may wish to pursue it. Thus, it takes a great deal of financial management and commitment to achieve it. Conversely, it is a time-consuming exercise for individuals who undertake it has to seek academic leaves to concentrate on it fully to gain knowledge and skills (“How doing an MBA”, n.d.). However, some people opt for part-time programs that are rather stressful and hectic to manage. It is prudent to note that, during the entire period of the course employees are forced to forego their salaries or receive significant cuts due to their academic leave (Finney, 1996). It is also important to note that MBA researches are costly and time consuming exercises, which are full of frustrations that forces individual to abandon their studies half-way or complete them under very stressful conditions (Boyatzis and Renio, 1989). According to Homkes (2011), most graduate MBA holders work under stressful condition because of the challenging targets their organizations set for them. She goes on to argue that “Best-practice firms set short-term and long-term targets for every stage of their process, spanning financial and nonfinancial measures; these targets are tough but fair, and developing them takes time and effort” Homkes, 2011). Conversely, she goes head to say that such firms demand rigorous monitoring in their process of productions by collecting, processing and evaluating statistical data. For this reason, such firms employ workers with advanced degrees, especially MBA because they perceive MBA holders as the most skilled and experienced persons with a good background in financial and statistical knowledge (Homkes, 2011). Kokemuller (n.d.) argues that MBA is a broad program, which emphasizes more on theoretical knowledge lieu of practical application. She goes to state that, MBA students spend considerable time in classes discussing cases, concepts and theories denying them the opportunity to practice newly acquired skills thoroughly. For this reason, some MBA holders spend a lengthy time to learn new skills and acquiring workplace experience (Kokemuller, n.d.). Additionally, research indicates that most industries and organisations value individuals with 4-5 years’ experience rather than fresh MBA holders, even though, they understand the value of MBA graduates (Baruch & Peiperl, 2000). Thus, this is not a reflection of the value attached to MBAs considering the amount of resources invested in studying MBA and the considerable amount of time spend. Bibliography Ascher, K. 1984. Masters of Business? London: Harbridge House Europe Baruch, Y., & Peiperl, M. (2000). The impact of an MBA on graduate careers. Human Resource Management Journal, 10(2), 69-90. Boyatzis, R. E. and Renio A. 1989. Research article: the impact of an MBA on managerial abilities. Journal of Management Development, Vol. 8, no. 5, 66-77. Carnall, C. A. 1992. MBA Futures, Basingstoke: MacMillan. Crittenden, A. 1996. `Up the corporate ladder: a progress report.’ Working Woman, Vol. 21. Dougherty, T. W, Dreher, G. F. and Whitely, W. 1993. `The MBA as careerist: an analysis of early-career job change.’ Journal of Management, Vol. 19, no. 3, 535-548. Finney, M. 1996. `Degrees that make a difference.’ HR Magazine, Vol. 41, no. 11, 74-82. Forrester, P. 1986. The British MBA, Cranfield: Cranfield Press Hawksley, F. 1996. `In the right place at the right time.’ Accountancy, Vol. 117, no. 1233, 44-46. Homkes, R., 2011. The MBA Advantage. Available at: http://www.businessweek.com/business-schools/the-mba-advantage-07112011.html [Accessed 7 march 2015]. How doing an MBA can benefit your career. (n.d.). Available at: http://www.postgrad.com/editorial/business-schools/mba-program/benefits-of-studying-an-mba/ [Accessed 7 march 2015]. Jenkins, R. 1996. Social Identity, London: Routledge. Kokemuller, N., n.d. Advantages & Disadvantages of an MBA Degree. Available at: http://education.seattlepi.com/advantages-disadvantages-mba-degree-3195.html [Accessed 7 march 2015]. Leeming, A. and Baruch, Y. 1998. `MBA as a bridge over the troubled waters of discrimination.’ Women in Management Review, Vol. 13, no. 3, 95-104. Luker, A, Bowers, M. R. and Powers, T. L. 1989. `Factors influencing pursuit of the MBA degree: a student and employer perspective.’ Journal of Marketing for Higher Education, Vol. 2, no. 2. MacErlean, N. 1993. `Master Classes.’ Accountancy, Vol. 111, no. 1195, 29-34. Schofield, P. 1996. `The MBA: managers only, please.’ Accountancy, Vol. 117, no. 1233, 40-42. Turner, J. 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