MBA programs and business needs: Is there a mismatch?

Abstract

T he MBA degree, perennially a certain credential for advancement, is losing some of its luster. The reduced prospects for MHAs result partly from the proliferation of MBA programs, currently estimated at more than 600 in the llnited States, with about 75,000 students graduating each year. In recent years, because many MBA graduates have been unable to find suitable jobs, interest in the degree and enrollments have begun to decline. For many business schools this trend is aUSe for great concern. MBA programs have been the “cash cows“ of program portfolios, particularly the part-time programs, whose students generate a good income (from tuition) for their institutions’ marginal overhead because they use idle facilities and do not require expensive labs or other rest~urce-abs~~rb~ng accoutrements. The increased output of MBAs at a time of prolonged economic recession has dramatically altered the demand-and-supply relationship for MBAs. However, newly minted graduates are likely IO encounter employer reservations that go beyond current structural problems into the deeper issue of whether a business school education is congruent with the needs of business. Employers are questioning the value of the traditional ‘LIBA program. Many perceive the MBA degree as emphasizing quantitative abilities and analytical skills while neglecting the development of other essential skills that enable a person to function in a business organization. Corporate critics say there should be a broader approach, with more focus on qualitative management and the ah&y to deal with people in an organization. Other critics of MBAs and business school programs cite these additional sllo~comings: l Business schools do little to produce future managers who are able to meet the challenges of the changing global business environment. l .YIBAs are ill-prepared to cope with an increasingly diverse work force.