MBA Programs -
Study that beats the recession
MBA study is currently seeing a surge in popularity – and it’s all thanks to the global recession
In the context of a global economic crisis, job cuts and the credit market squeeze, the ongoing increase in applications for MBA programs throughout the world might seem surprising. MBA programs study is not cheap and it is common knowledge that when times are hard, company training budgets are often the first to get cut. But despite the current climate, interest in the MBA programs is increasing and many business schools are reporting an increase in the take up of their MBA programs over the last 12 months. This reaction to the recession is not unusual – a similar pattern emerged during the last downturn in the UK in 2001-2, thus supporting the conventional wisdom that the MBA market tends to be counter cyclical.
The Association of MBAs’ most recent survey indicates that accredited business schools are receiving, on average, 500 applications a year for their MBA programs. Estimates suggest that there are now over 200,000 MBAs graduating each year in the world. The state of the economy is not the only reason for the increase in demand for the MBA programs – a surge in interest from India, China and Eastern Europe over recent years has added to the increase in numbers. But it is undoubtedly the global recession that is responsible for the most recent increase in the MBA programs current popularity.
Senior executives, laid off with a decent lump sum, are taking the opportunity for some “time out” and see MBA programs as a sensible investment for their redundancy payment. Full-time study provides these people with an opportunity to refresh and enhance their skills and knowledge, perhaps prepare for a career change or strengthen their expertize in a specialist area. They will build new networks and useful contacts among their fellow students, and, perhaps most importantly, will get the chance to reflect on their personal goals and values in the context of their career.
For those who are still employed but who may be facing an uncertain future, taking the MBA programs part-time or by distance learning also makes sense as a form of insurance against tough times ahead. In an increasingly competitive job market candidates benefit from any means of differentiation and need clear evidence that their skills and knowledge are relevant, certified and up to date. Employers are also likely to look positively on those who have demonstrated a commitment to learning and self development by investing in MBA programs study – especially in an uncertain economic climate.
MBA programs delivered through more flexible formats also help to spread the costs of training over a longer period and, providing the MBA programs have met the Association’s accreditation requirements, offer the same quality and standard of education as traditional full-time courses. Some far-sighted employers, rather than cutting staff development budgets, are choosing to sponsor MBA programs study for carefully selected talented staff who they want to retain. Employers have learnt from previous recessions that they need to hang on to their talented people during a downturn, so that the company is ready to respond with full force when the upturn comes.
Despite all these good reasons for taking MBA programs, it is not a decision to be taken lightly. MBA programs study is costly and involves a lot of hard work – it is by no means the guaranteed route to a top job as is often claimed. Using the MBA programs to “hide” from the recession is probably not a good idea – students taking on such a demanding course need genuine commitment and a sense of purpose to achieve the degree and to benefit from the experience.
In the current climate, it is more important than ever for employers and students alike to consider only those business schools with a good track record and strong reputation. Prospective MBA students who confine their search to accredited MBA programs have a wide range of international business schools to choose from. At the same time, they can be assured that the MBA programs they choose meet international quality standards and have been externally validated.
The Association of MBAs has accredited MBA programs at 165 business schools in 72 countries. Accreditation is independent and rigorous, involving the external scrutiny of faculty, curriculum, assessment and student services. Media rankings of business schools are also a useful indicator of quality but, unlike accreditation, do not represent a truly comprehensive and qualitative validation of the many highly respected MBA programs on offer. There are a growing number of international business schools that are building an impressive reputation and which represent strong competition to the well-established top institutions.
Ten years ago only three European Business Schools ranked among the top 20 global MBA programs – now eight have a place in this group. And of the Association’s 165 accredited business schools, 100 are based in Europe and the rest are from all over the world. Emerging markets in Asia, India, Africa and South America are increasingly important. In this context ambitious individuals – some at an early stage in their career and others already in senior positions – are seeing the MBA programs as a critical part of their professional development.
The two-year full-time MBA is no longer the norm – outside the US, full-time courses are typically one year and two-year part-time courses are increasingly popular. The qualification now appeals to a wider and more diverse student market – in fact one of the key benefits of MBA study is the experience of working with a group of like-minded people from a mix of countries, cultures and organizations. To take full advantage of this benefit and to help develop cross-cultural business skills, much of the learning on today’s MBA programs will focus on group work, student collaboration and the development of behavioral and interpersonal skills.
It is important to bear in mind that the MBA is positioned as a post-experience qualification, designed to build on and enhance skills and knowledge gained in the “real world”. This is what makes it unique in comparison to other management programs. MBA students are expected and encouraged to bring different experiences to the course, to share them and apply them to different business contexts. So the course offers a powerful mix of structured learning and the practical application of knowledge, skills and experience.
The MBA’s worldwide reputation as the leading business qualification has been achieved largely because it has evolved and changed over time, responding to business needs and changes in the economy. So long as this continues, the qualification will to deliver value to businesses and individuals – in good and in bad times.
For more information, visit:
Website: www.mbaworld.com
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