Master of Business Administration

The first school of business in the United States was The Wharton School of the University of Pennsylvania established in 1881 through a donation from Joseph Wharton^[4]. In 1900, the Tuck School of Business was founded at Dartmouth College[4] conferring the first advanced degree in business, specifically, a Master of Science in Commerce, the predecessor to the MBA.[5]

The Harvard Graduate School of Business Administration established the first MBA program in 1908, with 15 faculty members, 33 regular students and 47 special students.[6][7] Its first-year curriculum was based on Frederick Winslow Taylor’s scientific management. The number of MBA students at Harvard increased quickly, from 80 in 1908, over 300 in 1920, and 1,070 in 1930.[8] At this time, only American universities offered MBAs. Other countries preferred that people learn business on the job.[8]

Other milestones include:

• 1930: First management and leadership education program for executives and mid-career experienced managers (the Sloan Fellows Program at the Massachusetts Institute of Technology).[9][10]
• 1943: First Executive MBA (EMBA) program for working professionals at the University of Chicago Booth School of Business.[11] Chicago was also the first business school to establish permanent campuses on three continents in Chicago (USA), Barcelona (Europe), and Singapore (Asia). Most business schools today offer a global component to their executive MBA. Since the program was established, the school has moved its campuses and is now based in Chicago, London, and Hong Kong.
• 1946: First MBA focused on global management at Thunderbird School of Global Management.[12]
• 1950: First MBA outside of the United States, in Canada (Ivey Business School at The University of Western Ontario),[13] followed by the University of Pretoria in South Africa in 1951.[14]
• 1955: First MBA offered at an Asian school at the Institute of Business Administration Karachi at the University of Karachi in Pakistan, in collaboration with the Wharton School of the University of Pennsylvania.[15]
• 1957: First MBA offered at a European school (INSEAD).[16]
• 1963: First MBA offered in Korea by Korea University Business School (KUBS).[17]
• 1986: First MBA program requiring every student to have a laptop computer in the classroom at the Roy E. Crummer Graduate School of Business at Rollins College (Florida).[18] Beginning with the 1992–1993 academic year, Columbia Business School required all incoming students to purchase a laptop computer with standard software, becoming the first business school to do so.[19][20]
• 1994: First online executive MBA program at Athabasca University (Canada).[21]

The MBA degree has been adopted by universities worldwide in both developed and developing countries.[22]

Full-time MBA programs normally take place over two academic years (i.e. approximately 18 months of term time). For example, in the Northern Hemisphere, they often begin in late August or early September of year one and continue until May or June of year two, with a three to four-month summer break in between years one and two. Students enter with a reasonable amount of prior real-world work experience and take classes during weekdays like other university students. A typical full-time, accelerated, part-time, or modular MBA requires 60 credits (600 class hours) of graduate work.

Accelerated MBA programs are a variation of the two-year programs. They involve a higher course load with more intense class and examination schedules and are usually condensed into one year. They usually have less downtime during the program and between semesters. For example, there is no three to four-month summer break, and between semesters there might be seven to ten days off rather than three to five weeks vacation. Accelerated programs typically have a lower cost than full-time two-year programs.

Part-time MBA programs normally hold classes on weekday evenings after normal working hours, or on weekends. Part-time programs normally last three years or more. The students in these programs typically consist of working professionals, who take a light course load for a longer period of time until the graduation requirements are met.

Evening (second shift) MBA programs are full-time programs that normally hold classes on weekday evenings, after normal working hours, or on weekends for a duration of two years. The students in these programs typically consist of working professionals, who can not leave their work to pursue a full-time regular shift MBA. Most second shift programs are offered at universities in India.

Modular MBA programs are similar to part-time programs, although typically employing a lock-step curriculum with classes packaged together in blocks lasting from one to three weeks.

Executive (part-time) MBA (EMBA) programs developed to meet the educational needs of managers and executives, allowing students to earn an MBA (or another business-related graduate degree) in two years or less while working full-time. Participants come from every type and size of organization – profit, nonprofit, government – representing a variety of industries. EMBA students typically have a higher level of work experience, often 10 years or more, compared to other MBA students. In response to the increasing number of EMBA programs offered, The Executive MBA Council was formed in 1981 to advance executive education.

Full-time executive MBA programs are a new category of full-time 1 year MBA programs aimed at professionals with approx. 5 years or more. They are primarily offered in countries like India where the 2-year MBA program is targeted at fresh graduates with no experience or minimal experience. These full-time executive MBA programs are similar to 1 year MBA programs offered by schools like Insead and IMD.

Distance learning MBA programs hold classes off-campus. These programs can be offered in a number of different formats: correspondence courses by postal mail or email, non-interactive broadcast video, pre-recorded video, live teleconference or videoconference, offline or online computer courses. Many schools offer these programs.

Blended learning programs combine distance learning with face-to-face instruction.[26] These programs typically target working professionals who are unable to attend traditional part-time programs.[27]

MBA dual degree programs combine an MBA with others (such as an MS, MA, MEng, or a JD, etc.) to let students cut costs (dual programs usually cost less than pursuing 2 degrees separately), save time on education and to tailor the business education courses to their needs. This is generally achieved by allowing core courses of one program to count as electives in the other. Some business schools offer programs in which students can earn both a bachelor's degree in business administration and an MBA in five years.

Mini-MBA is a term used by many non-profit and for-profit institutions to describe a training regimen focused on the fundamentals of business. In the past, Mini-MBA programs have typically been offered as non-credit bearing courses that require less than 100 hours of total learning. However, due to the criticisms of these certificates, many schools have now shifted their programs to offer courses for full credit so that they may be applied towards a complete traditional MBA degree. This is to allow students to verify business-related coursework for employment purposes and still allow the option to complete a full-time MBA degree program at a later period if they elect to do so.

Many programs base their admission decisions on a combination of undergraduate grade point average, academic transcripts, entrance exam scores, a résumé containing significant work experience, essays, letters of recommendation, group discussions, and personal interviews. Some schools are also interested in extracurricular activities, community service activities, or volunteer work and how the student can improve the school's diversity and contribute to the student body as a whole.

The Graduate Management Admission Test (GMAT) is the most prominently used entrance exam for admissions into MBA programs. The Graduate Record Examination (GRE) is also accepted by almost all MBA programs in order to fulfill any entrance exam requirement they may have.[28] Some schools do not weigh entrance exam scores as heavily as other criteria, and some programs do not require entrance exam scores for admission. In order to achieve a diverse class, business schools also consider the target male-female ratio and local-international student ratios. In rare cases, some MBA degrees do not require students to have an undergraduate degree and will accept significant management experience in lieu of an undergraduate degree. In the UK, for example, an HND (Higher National Diploma) or even HNC (Higher National Certificate) is acceptable in some programs.

Depending on the program, type and duration of work experience can be a critical admissions component for many MBA programs.[29] Many top-tier programs require five or more years of work experience for admission.[30][31]

MBA admissions consulting services exist to counsel MBA applicants to improve their chances of getting admission to their desired Business Schools. These services range from evaluating a candidate's profile, GMAT preparation, suggesting the schools to which they can apply, writing and editing essays, conducting mock interviews as preparation for MBA admission interviews, as well as post-MBA career counseling.

In general, MBA programs are structured around core courses (an essentially standard curriculum[32][33]) and elective courses that (may) allow for a subject specialty or concentration.[34] Thus, in the program's first year (or part), students acquire both a working knowledge of management functions and the analytical skills required for these, while in the second year (part), students pursue elective courses, which may count towards a specialization. (Topics in business ethics may be included at the generalist or specialist level.) After the first year, many full-time students seek internships. The degree culminates with coursework in business strategy, the program capstone. A dissertation or major project is usually a degree requirement after the completion of coursework. Many MBA programs end with a comprehensive exit examination; see below.

For Executive MBA programs, the core curriculum is generally similar, but may seek to leverage the strengths associated with the more seasoned and professional profile of the student body, emphasizing leadership, and drawing more from the specific experience of the individual students.[35][36]

Programs are designed such that students gain exposure to theory and practice alike.[37] Courses include lectures, case studies, and team projects; the mix though, will differ by school[38] and by format. Theory is covered in the classroom setting by academic faculty, and is reinforced through the case method, placing the student in the role of the decision maker. Similar to real world business situations, cases include both constraints and incomplete information. Practical learning (field immersion) often comprises consulting projects with real clients, and is generally undertaken in teams (or "syndicates").[39][40] The practical elements (as well as the case studies) often involve external practitioners—sometimes business executives—supporting the teaching from academic faculty. (See Business school #Use of case studies and #Other approaches; and Business education #Postgraduate education generally.)

As above, courses begin with underlying topics[32] and then progress to more advanced functional topics where these are applied; see aside.

The analytic skills required for management are usually covered initially. The accounting course(s) may treat financial and management accounting separately or in one hybrid course. Financial accounting deals mainly in the preparation of financial statements while management accounting deals mainly in the analysis of internal results. The economics course covers managerial economics, a technical course that mainly focuses on product pricing as influenced by microeconomic theory, and aggregate-or macroeconomics, which deals with topics like the banking system, the money supply, and inflation. Operations Research and statistics are sometimes combined as "Managerial Decision-Making" or "Quantitative Decision-Making"; organizational behavior and human resource management may similarly be combined. In many programs, applicants with appropriate background may be exempt from various analytical courses.

As regards the functional courses, some programs treat the curricula here in two parts: the first course provides an overview, while the second revisits the subject in-depth (perhaps as specializations); alternatively, the first addresses short-term, tactical problems, while the second addresses long-term, strategic problems (e.g., "Financial Management I" might cover working capital management, while part II covers capital investment decisions). An Information systems / technology course is increasingly included as a core functional course rather than an elective. Ethics training is often delivered with coursework in corporate social responsibility and corporate governance. Note that courses here, although technical in the content are, ultimately, oriented toward corporate management. (For example, the principal finance course may cover the technicalities of financial instrument valuation and capital raising, but is in fact focused on managerial finance and financial management.) Technically-oriented courses, if offered, will be via a specialization.

Programs may also include (coursework-based) training in the skills needed at senior levels of management: soft skills, such as (general) leadership and negotiation; hard skills, such as spreadsheets and project management; thinking skills such as innovation and creativity. Training in areas such as multiculturalism and corporate social responsibility is similarly included. Company visits (including overseas travel), and guest lectures or seminars with CEOs and management personalities may also be included. These, with the core subjects, provide the graduate with breadth, while the specialty courses provide depth.

For the business strategy component, the degree capstone, the focus is on finding competitive advantage and the long-term positioning and management of the entity as a whole. Here, the key functional areas are thus synthesized or integrated into an overall view and the strategy course depicts how the various sub-disciplines integrate to tell one continuous story with each discipline complementing the others. Corresponding training in business leadership may also be scheduled and participation in a business simulation or game is also a common degree requirement. "Strategy" may be offered as a sequence of courses, beginning in the first part (planning) and culminating in the second (execution), or as a single intensive course, offered during the second part. Some programs offer a specialization in "strategy", others in management consulting which substantially addresses the same issues.

The MBA dissertation (or thesis in some universities) will, in general, comprise the following in some combination:[41] a discussion of the literature, providing a critical review and structuring of what is known on a given topic, to address a specific problem; a case study that goes beyond simple description, containing the analysis of hitherto unpublished material; a test of the application or limitations of some known principle or technique in a particular situation, and/or suggested modifications. As an alternative to the dissertation, some programs instead allow for a major project.[42] Here (part-time) students will address a problem current in their organization; particularly in programs with an action learning orientation, these may be practically oriented.[42] Most MBA programs require additional course work in research methodology, preceding the dissertation or project. Some programs allow that the research component as a whole may be substituted with additional elective coursework.

Honor societies recognize individuals for high achievement in MBA programs. These honor societies include:

• Beta Gamma Sigma - membership requires one to be in the top 20% of their program's class after completing half of the program.[45]
• Delta Mu Delta - membership requires one to be in the top 20% of their program's class and have a GPA of at least 3.6 after completing half of the program.[46]
• Financial Management Association - membership requires one to have a 3.5 overall GPA, or a 3.5 GPA in finance and finance-related courses, after completing half of the program.[47]
• T10 - membership requires one to have scored in the top 10% in the country on a national comprehensive MBA exam.[48]

An MBA prepares individuals for many types of careers. According to a survey by the Graduate Management Admissions Council, 64% of year 2012 MBA graduates used their MBA to change careers.[49] Some of the more common jobs an MBA prepares one for include:

• Business analyst or strategist
• Business development analyst, associate, or manager
• Market research analyst
• Managing Director (of a department)
• Investment banker
• Entrepreneur/founder
• Financial analyst, associate, or manager
• Management consultant
• Marketing associate, analyst, or manager
• Portfolio manager
• Project analyst or strategist
• Product analyst, associate, or manager
• Program analyst, associate, or manager
• Operations analyst, associate, or manager[50][51]

The Financial Times in its Executive Education Rankings for 2012 included 5 African business schools.

International MBA programs are acquiring brand value in Asia. For example, while a foreign MBA is still preferred in the Philippines, many students are now studying at one of many "Global MBA" English language programs being offered. English-only MBA programs are also offered in Hong Kong, Indonesia, Malaysia, Singapore, South Korea, Taiwan, and Thailand. For international students who want a different experience, many Asian programs offer scholarships and discounted tuition to encourage an international environment in the classroom.

Rankings have been published for Asia Pacific schools by the magazine Asia Inc. which is a regional business magazine with distribution worldwide. The importance of MBA education in China has risen, too.[62]

Since 1967, publications have ranked MBA programs using various methods.[71] The Gourman Report (1967–1997) did not disclose criteria or ranking methods,[72] and these reports were criticized for reporting statistically impossible data, such as no ties among schools, narrow gaps in scores with no variation in gap widths, and ranks of nonexistent departments.[73] In 1977 The Carter Report ranked MBA programs based on the number of academic articles published by faculty, the Ladd & Lipset Survey ranked business schools based on faculty surveys, and MBA Magazine ranked schools based on votes cast by business school deans.[71]

Today, publications by the Aspen Institute, Business Week, The Economist, Financial Times, Forbes, Quacquarelli Symonds, US News & World Report, and the Wall Street Journal make their own rankings of MBA programs. Schools' ranks can vary across publications, as the methodologies for rankings differ among publications:

• The Aspen Institute publishes the Beyond Grey Pinstripes rankings which are based on the integration of social and environmental stewardship into university curriculum and faculty research. Rankings from a small sample of well-known schools are calculated on the amount of sustainability coursework made available to students (20%), amount of student exposure to relevant material (25%), amount of coursework focused on stewardship by for-profit corporations (30%), and relevant faculty research (25%).[74] The 2011 survey and ranking include data from 150 universities.[75]
• Business Week's rankings are based on student surveys, a survey of corporate recruiters, and an intellectual capital rating.[76]
• The Economist Intelligence Unit, published in The Economist, surveys both business schools (80%) and students and recent graduates (20%). Ranking criteria include GMAT scores, employment and salary statistics, class options, and student body demographics.[77]
• Financial Times uses survey responses from alumni who graduated three years prior to the ranking and information from business schools. Salary and employment statistics are weighted heavily.[78]
• Forbes considers only the return of investment five years after graduation. MBA alumni are asked about their salary, the tuition fees of their MBA program, and other direct costs as well as opportunity costs involved. Based on this data, a final "5-year gain" is calculated and determines the MBA ranking position.[79]
• Quacquarelli Symonds QS Global 200 Business Schools Report compiles regional rankings of business schools around the world. Ranks are calculated using a two-year moving average of points assigned by employers who hire MBA graduates.[80]
• U.S. News & World Report incorporates responses from deans, program directors, and senior faculty about the academic quality of their programs as well as the opinions of hiring professionals. The ranking is calculated through a weighted formula of quality assessment (40%), placement success (35%), and student selectivity (25%).[81]
• UT-Dallas Top 100 Business School Research Rankings ranks business schools on the research faculty publish, similar to The Carter Report of the past.[82]
• The Wall Street Journal, which stopped ranking full-time MBA programs in 2007, based its rankings on skill and behavioral development that may predict career success, such as social skills, teamwork orientation, ethics, and analytic and problem-solving abilities.[83]

The ranking of MBA programs has been discussed in articles and on academic websites.[84] Critics of ranking methodologies maintain that any published rankings should be viewed with caution for the following reasons:[85]

• Rankings exhibit intentional selection bias as they limit the surveyed population to a small number of MBA programs and ignore the majority of schools, many with excellent offerings.
• Ranking methods may be subject to personal biases and statistically flawed methodologies (especially methods relying on subjective interviews of hiring managers, students, or faculty).
• Rankings use no objective measures of program quality.
• The same list of schools appears in each ranking with some variation in ranks, so a school ranked as number 1 in one list may be number 17 in another list.
• Rankings tend to concentrate on representing MBA schools themselves, but some schools offer MBA programs of different qualities and yet the ranking will only rely upon information from the full-time program (e.g., a school may use highly reputable faculty to teach a daytime program, but use adjunct faculty in its evening program or have drastically lower admissions criteria for its evening program than for its daytime program).
• A high rank in a national publication tends to become a self-fulfilling prophecy.
• Some leading business schools including Harvard, INSEAD, Wharton and Sloan provide limited cooperation with certain ranking publications due to their perception that rankings are misused.[86]

One study found that ranking MBA programs by a combination of graduates' starting salaries and average student GMAT score can approximately duplicate the top 20 list of the national publications, and concluded that a truly objective ranking would use objective measures of program quality and be individualized to the needs of each prospective student.[85] National publications have recognized the value of rankings against different criteria and now offer lists ranked different ways: by salary, GMAT score of students, selectivity, and so forth. While useful, these rankings have yet to meet the critique that rankings are not tailored to individual needs, that they use an incomplete population of schools, may fail to distinguish between the different MBA program types offered by each school, or rely on subjective interviews.

The media raised questions about the value and content of business school programs after the financial crisis of 2007–2010. In general, graduates had reportedly tended to go into finance after receiving their degrees.[87] As financial professionals are widely seen as responsible for the global economic meltdown, anecdotal evidence suggests new graduates are choosing different career paths.[88]

Deans at top business schools have acknowledged that media and public perception of the MBA degree shifted as a result of the financial crisis.[89] Articles have been written about public perceptions of the crisis, ranging from schools' acknowledgment of issues with the training students receive[87][89] to criticisms of the MBA's role in society.[90]

The MBA title has acquired a mixed reputation in that the MBA curriculum tends to educate students in the "greed is good" direction based on various simplistic assumptions about human behavior.[91]

• Outline of business management
• Bachelor of Business Administration

• www.tandfonline.com

• Patterson, Sarah E.; Damaske, Sarah; Sheroff, Christen (June 2017). "Gender and the MBA: differences in career trajectories, institutional support, and outcomes". Gender & Society. 31 (3): 310–332. doi:10.1177/0891243217703630. PMC 5915327. PMID 29706689.
• Silbiger, Steven. "The 10 Day MBA". Cite journal requires |journal= (help)