One can only sympathize with a potential “Master of Business Administration” who is at the stage of deciding “to go or not to go for an MBA, and if go, then where and when.” Simultaneously, promises from marketers of various business schools, advice from friends and colleagues (“great experts” on this matter) who, of course, lean toward “go, and the sooner the better, and the more expensive, naturally the higher the quality” all come down on them. Having ignored the exhortations of friends, colleagues, and those who are paid to attract students to business schools, one can only rely on information in business magazines. It would seem to be the most reliable and unbiased. However, articles are often written by graduates of journalism faculties who have mastered the art of presenting material as vividly as possible, but who themselves have never studied for a day at a business school and learned about the essence of business education from secondary sources or from the same business school marketers.
Another problem is outdated information. Fashion, and with it a sharp increase in demand for MBA programs, peaked in the late 90s, when many sought to enrich their resumes to be quoted higher on the labor market and stand out amid the overproduction of “specialists-economists.” But a few years ago it suddenly became clear that our country does not need as many MBA graduates as have proliferated during this time, and companies are not able to meet their salary expectations.
As a result of the excessive number and, as experience has shown, not always high quality (in the case of “average” schools), MBA graduates have lost their uniqueness. Consequently, they have “fallen” both in price and in the eyes of employers. Therefore, when flipping through analytical articles, especially on the Internet, it makes sense to pay attention to the time of publication, since the information most likely will correspond to the spirit of the times and “promote” or “debunk” the miraculousness of MBA programs depending on whether it belongs to the first or second time period.
Both schools and students are gradually coming to the conclusion that an MBA is not a panacea, and not every person who falls into the hands of even the most skilled teachers can be carved into a super-manager, ready to come to any enterprise, roll up their sleeves, and immediately start solving strategic tasks. Some will open all doors even without an MBA diploma, while for others even the best program will not help.
Бить точно в цель
Today, a new view on the problem “to be MBA or not to be” has taken shape: an MBA program that recruits “fresh” university graduates loses all meaning and is no different from a master's degree (MA or MSc) in general management or other business specialties. After all, the main difference between the latter programs and an MBA is that admission usually does not require managerial work experience, and consequently, the student body is formed accordingly. For MA and MSc come not directors and company managers, but junior and middle-level managers, possibly with management experience, but not of a factory, but of a small department with a modest budget.
Many who are thinking about an MBA actually need exactly such a program. There are also master's programs that can accept applicants without work experience, but with higher education in the relevant field. The quality of education in master's programs in business specialties is usually no worse than in MBA programs, since classes often take place in the same business school and are taught by the same professors.
University graduates themselves, not without the influence of the “agitation” work of selective business schools and recruiters, are gradually realizing that the return on investment in an MBA will be higher the more managerial work experience they have and the real need to systematize the knowledge accumulated during practice.
However, there are still those who do not understand this. Hence, on the one hand, “omnivorous” schools, and on the other, their main clients, green graduates who cannot find the job they expected when paying big money for an MBA diploma. For reputable employers perfectly realize the practical unsuitability of business administration theorists with an absolute lack of experience in managing people, a company, or any of its departments.
Не панацея от всех бед
If you believe our employers, an MBA is not a necessary, and certainly not a sufficient, condition for appointment to a coveted position. Most likely, managerial experience is primarily “necessary and sufficient,” and preferably in a specific industry. The less of it there is, the higher the likelihood that a CV needs to be reinforced with a solid “education” section. The more of it, the more indifferent the employer looks at diplomas, in particular, at the presence of an MBA degree.
The education received at a business school should not be overestimated. It is rather a way to make useful “international-scale” contacts (as the vast majority of graduates say), structure existing knowledge, learn to make decisions more quickly, etc. Ultimately, it is an opportunity to take a two-year timeout and think about “what to do with your life next.”
The most pressing issue in recent years that torments applicants and students of Western schools: do “Western” knowledge and skills actually “work” in our country? Here is what graduates think about this. Firstly, economic laws and methods have a universal nature, regardless of where they are used, whether in a developed or developing market. Secondly, analytical and financial methods, methods of resource analysis, planning, and control are quite applicable here as well.
At the same time, the management methods themselves taught in business schools do not take into account the specifics of doing business in Russia: high levels of corruption and a weak judicial system, a "national character" and post-Soviet cultural heritage (the desire to get "everything at once", the inability to set ambitious but achievable goals, low labor productivity, a tendency towards state paternalism). Plus "physical" barriers: relatively underdeveloped telecommunications, and often poor technical equipment (which is relevant for regions).
By and large, "Western" knowledge is quite applicable at home as well. However, the source of this knowledge can be not only an MBA program, but also simply a master's degree (MSc or MA) at a good foreign business school.
Where is it good to live with an MBA?
Our graduates of Western schools have different employment options in the West. If it is not self-employment – one's own business – there is a possibility: a) to get a high position in a Western company, for example, to develop the Eastern European direction; b) to join a company (for example, a consulting one) that deliberately recruits MBA graduates, who have to start from junior management positions, but with fairly solid starting salaries.
What is happening here? According to observations by Anton Sychev, a consultant at a consulting group, our employers can be roughly divided into three large groups, each of which has its own view on hiring MBA graduates. The first includes companies focused on deep optimization of various parts of their activities, usually due to high competition in a particular market. The higher the level of the company's tasks and the importance of the position for which a specialist is needed, the stricter the requirements for candidates, including the presence and "quality" of an MBA diploma.
The second approach is typical of companies that build their personnel selection policy based on assessing specific work experience, achievements, and personal qualities of future employees. In such companies, an MBA will be a plus, confirming the systematic nature of the candidate's knowledge and approaches to solving tasks. But the diploma will not become a decisive argument.
The third group is companies that have been "burned" by specialists with an MBA diploma, or companies with a certain HR policy (excessive education of employees harms "unity of command" or creates real competition for a certain circle of managers).
According to observations by Marina Yalymova, senior consultant at RosExpert, MBAs are most in demand in four sectors. First of all, industry. The time when it was necessary to profitably buy, "package," and sell an enterprise even more profitably is over; effective management has come to the fore. Secondly, banking structures, insurance and investment companies, private equity funds. The third segment is the development market, where there is an absolute shortage of top managers. The fourth area is retail.