MBA’s: After the crisis

While the current economic crisis has hit the financial sector in the developed world, other industries has been affected is business education, including MBA’s.

Indeed, since many of the bankers who were protagonists of the crisis are MBA’s from prestigious business schools in the world, the reputation of both these schools and the concept of the MBA in general have been severely affected.

At present, several international publications and commentators business world and conclude that the MBA is not the “golden ticket” that used to be for high-paying jobs, particularly in the financial industry and the consulting industry business. At present, both investment banks and consulting firms are increasingly hiring professionals without MBA’s, especially with a background in Mathematics and Computer Science. On the other hand, are investing more in staff development. Instead of losing two years to a professional of 26 years of age, are considering developing it internally through assignments and courses focused on the responsibilities of the role.

Statistics suggest that applications in business school class have remained constant, while second-tier schools have decreased. The lowest ranking schools face even greater difficulties in attracting students. At present, more widespread view that might be better to seek professional careers to stay in an organization that offers good opportunities for development at work, instead of interrupting it for two years to enroll in a full-time MBA.

Moreover, enrollment in alternative programs has increased. In particular, the one-year programs are highly offered by European universities and is detected there is a tendency to seek more specialized courses. While some have come to conclude that it is necessary to make investment in the MBA to be successful in his career, he detects a tendency to seek more specialized courses, less expensive and could accommodate the agendas of the participants.

In this sense, traditional programs of business schools face a high competition from executive programs, part-time programs, distance learning programs, one-year programs and master’s focused on specific topics such as Finance or Marketing. To some extent, more flexible and focused programs can address another major challenge, which concerns the way in which students divide the time between job search and study. One of the common complaints of teachers in master’s programs full time is that students end up doing more in search of work in his studies, devoting most of their time to this end.

Criticism of MBAs go beyond investment banks and consulting firms. Several industries have expressed concern that teachers of these programs are more interested in theory than in practice management. Even some of these scholars recognize that writing in a journal can give them more prestige than in a publication could be implemented as the Harvard Business Review. On the other hand, the programs seem to have a high technical approach, ignoring critical issues for a business manager, such as ethics and values, teamwork, persuasion, motivation and management of uncertainty.

While there are still major gaps and threats, business schools have made an effort to remain in force through its flexibility to adapt their programs to the requirements of the present. Some programs have tried to be more global and have established campuses in several cities worldwide, as well as bring a better balance between practice and theory to the classroom. Universities such as Stanford, Yale Berkley and have made recent changes in their curriculum and even Harvard has introduced the equivalent of the Hippocratic Oath to graduates. It could be argued that these trends have already made a major benefit by providing a more varied and comprehensive options to offer a wider range of courses and ways to teach. In some ways, business schools are concerned to modernize its administration of the heavy demands of the environment.