Is an MBA worth it?

[Tigerman]

Is a MBA worthwhile for someone who has already done accounting, auditing and economics to hons level? I know MBAs teach students to think strategically, but the individual subjects that make up a MBA - accounting, finance, economics, organisational behaviour etc - B Com student read in their first year. It would be so boring to have to repeat Accounting 101.

And an MBA is very expensive. Are there accredited distance education courses covering topics that might not have been part of the typical accounting B Com e.g. strategy that one could practically use in a business setting?

 

[czc]

I know someone that refuses to work with anyone that has an MBA. If that helps at all.

 

[creeper]

I know someone that refuses to work with anyone that has an MBA. If that helps at all.

Does he have an inferiority complex?

Seriously, MBA has value, but only if you will be utilising the knowledge. Most people do their MBA's for the piece of paper, so they tend to be know-it-all (and also suffer the most during an MBA). An MBA has value if you 1) want to make a career change into management or consulting, 2) you are a sucker for pain ...I mean...a challenge, 3) learn more about business overall instead of one field (learn about Ops management, marketing, HR) as to be able to do your job better. At the end, the MBA teaches you to think and understand that you do NOT know everything, therefore need to leverage on those that are experts.

My advice is to talk to MBA students and go to the open days of MBA Schools.

 

[czc]

Does he have an inferiority complex?

Seriously, MBA has value, but only if you will be utilising the knowledge. Most people do their MBA's for the piece of paper, so they tend to be know-it-all (and also suffer the most during an MBA). An MBA has value if you 1) want to make a career change into management or consulting, 2) you are a sucker for pain ...I mean...a challenge, 3) learn more about business overall instead of one field (learn about Ops management, marketing, HR) as to be able to do your job better. At the end, the MBA teaches you to think and understand that you do NOT know everything, therefore need to leverage on those that are experts.

My advice is to talk to MBA students and go to the open days of MBA Schools.

No he is convinced that people with MBA's **** businesses up.

 

[Tigerman]

OK so, i spoke with only one person so far who completed a post grad dipl business admin (a mini-MBA) who wasn't convinced of its value. i'm getting that people may do it only to get the paper and they feel they can ask for exorbitant salaries afterward. But is that true.
How do employers value it compared to other professional post grad business qualifications?

 

[danlr]

The question is, if fr yourself, what do you want to do in your career and how would this help you get there?

I have mixed feelings about MBAs - it depends very much where you got it, a reputable, TOP institution should be used. If you just go to some unknown or small place, well... You get what you pay for.

As an employer, it depends what role you recruiting for. I would probably use consultants rather than recruit an MBA permanently.

MBA benefits for student - if you do it through top business school you will be head hunted, salary will increase a fair amount year one with a big jump in your second year after qualifying.

as a side note - MBAs also causes a lot of divorces due to the commitments etc etc

 

[creeper]

OK so, i spoke with only one person so far who completed a post grad dipl business admin (a mini-MBA) who wasn't convinced of its value. i'm getting that people may do it only to get the paper and they feel they can ask for exorbitant salaries afterward. But is that true.
How do employers value it compared to other professional post grad business qualifications?

@CZC Everyone is entitled to their opinion.

@Tigerman A mini-MBA is NOT an MBA. An MBA is the compression of 10 years into 2-3 years (yes, it is a cliche, but true). I had a great boss that explained it well. In your career, you can become a specialist or a generalist. E.g. You can study engineering, become an engineer, but later in your life, you will be come a generalist aka a manager. MBA is a generalist in nature. You know a bit of everything, that is the reason you can think "strategically." To me, if you are a specialist and require the skill to become a manager or consultant, it makes sense to do a course that fits the criteria aka MBA. It opens your eyes.

The problem is that as @CZC eluded to, a generalisation that MBA are know-it-alls, screws up companies etc. There is an element of that, but most of those that I know that finished their MBAs are aiming for self-employment by starting their own businesses. The role and learnings of MBAs are changing towards adapting to a new world economy.

(Note: I suspect that soon you will learn Mandarin with your MBA )

 

[chrisc]

Yes, 90% of the time. It depends on the type of work you will be doing, but it tells your prospective employer that you have already graduated and have gone the extra mile to enhance your business knowledge. In a medium to high-powered corporate environment, it is a must. It will speed up your prospects to being a director or partner.

The effort is well worth the long-term gain

 

[JustinB]

I think it entirely depends on your career aspirations. Some companies use degrees as screening criteria for certain roles, so having a MBA may open up some job opportunities, but, as indicated by creeper, it really is about breadth rather than depth. If you've done Honours in Economics, you'll likely fly through the ecos section and probably feel that it only really scratched the surface - the reality is you're only really scratching the surface on all the modules...

 

[FatBoySlim]

As someone who has just graduated with an MBA, the honest answer, in South Africa CA's are the most loved CEO's - go over to Europe / US and an MBA is valued far higher in leadership roles.

There was an article recently on this debate as to the why, and it was stated that CA's as their past is based on accounting background have no focus based on leadership and all other aspects that goes with it. That does not mean a CA is not a leader, take a look at Richard Branson (no CA or MBA, but a true business leader).
However one thing that was pointed out is how most SA companies are conservative by nature when compared to the US for example, this has pro's and cons's - lets take our conservative banks who screw us over every day and dont need any iniative to make money - lets compare that to the US where competition is rife and the most innovative co is the winner at the end of the day.
On the flip side, when we have a financial crisis like 2008/2009, lets then compare the US vs SA - where the less riskier approach to business is the winner at the end of the day.

So in summary , if you want to be a business leader in SA, go and become a CA, far cheaper and more effective in SA - ive met many overpaid CA's in top end roles, sadly I cannot make too many positive comments about the majority of them.

Just my 5cents.

 

[Tigerman]

As someone who has just graduated with an MBA, the honest answer, in South Africa CA's are the most loved CEO's - go over to Europe / US and an MBA is valued far higher in leadership roles.

There was an article recently on this debate as to the why, and it was stated that CA's as their past is based on accounting background have no focus based on leadership and all other aspects that goes with it. That does not mean a CA is not a leader, take a look at Richard Branson (no CA or MBA, but a true business leader).
However one thing that was pointed out is how most SA companies are conservative by nature when compared to the US for example, this has pro's and cons's - lets take our conservative banks who screw us over every day and dont need any iniative to make money - lets compare that to the US where competition is rife and the most innovative co is the winner at the end of the day.
On the flip side, when we have a financial crisis like 2008/2009, lets then compare the US vs SA - where the less riskier approach to business is the winner at the end of the day.

So in summary , if you want to be a business leader in SA, go and become a CA, far cheaper and more effective in SA - ive met many overpaid CA's in top end roles, sadly I cannot make too many positive comments about the majority of them.

Just my 5cents.

Actually i started but did not complete CTA (2 subject credits) because, in my opinion, CA's are anal retentive and take themselves too seriously - the jokes about them are true. I did something else at honours level. Which is why i'm looking at MBA, for that edge a CA would've given me. Fatboy you don't sound too sure of the relevance of yr MBA in SA?
Is CIMA underrated?

 

[shogun]

I've looked at the MBA course content. If you have done a 4 year honours degree (e.g. Business Science or the like), then an MBA will give you nothing extra. It will be a refresher course (and a painful one at that - hats off to those with an MBA that had to do it while working).

Break it down... 4 years grafting your ass off in a range of subjects including management and communication skills... vs 2 years of grafting your ass off in the same range of subjects.

An MBA is ideal for someone that has not already completed an honours degree in business.

 

[FatBoySlim]

Well lets say ive worked for a few large corporates in SA and the majority tend to be CA's at CEO level - the current group I am with has +-15 CA CEO's. Funnily enough go and check out the international ranking of UCT / Stellenbosch and the other big business schools, the MBA programs are highly accredited - therefore we cannot blame the program, I think SA puts too much emphasis on having accountants running a business, not necessarily a bad thing in some instances, however not always the BEST solution.

Actually i started but did not complete CTA (2 subject credits) because, in my opinion, CA's are anal retentive and take themselves too seriously - the jokes about them are true. I did something else at honours level. Which is why i'm looking at MBA, for that edge a CA would've given me. Fatboy you don't sound too sure of the relevance of yr MBA in SA?
Is CIMA underrated?

 

[FatBoySlim]

Not sure I agree with your comment on the Bus Science vs MBA, whereas the softer subjects which focus on personal development and leadership (3 years of it) are excluded in Business Science.

I've looked at the MBA course content. If you have done a 4 year honours degree (e.g. Business Science or the like), then an MBA will give you nothing extra. It will be a refresher course (and a painful one at that - hats off to those with an MBA that had to do it while working).

Break it down... 4 years grafting your ass off in a range of subjects including management and communication skills... vs 2 years of grafting your ass off in the same range of subjects.

An MBA is ideal for someone that has not already completed an honours degree in business.

 

[Pavan]

most exec/director roles come with that last line in the job description which reads, "MBA graduates will be given preference"...

 

[Pavan]

Also agree with the CA comments above - but jeez would never want to study accounting for 4 years, then do articles and write board exams. Rather just supplement my engineering degree with an MBA...

 

[jxharding]

show me one MBA in Cape Town earning more than the CA's in my area, and i'll believe that MBA > C.A.

in this country, NOTHING beats C.A.

 

[FatBoySlim]

Ive seen masters degree will be given a preference, not sure about MBA graduates, to be honest I would never put that as an employer myself, as I can show you MBA grads who are 26 yrs and have no clue about business, perhaps im looking in the wrong places.

most exec/director roles come with that last line in the job description which reads, "MBA graduates will be given preference"...

 

[FatBoySlim]

+1

Also agree with the CA comments above - but jeez would never want to study accounting for 4 years, then do articles and write board exams. Rather just supplement my engineering degree with an MBA...

 

[Pavan]

show me one MBA in Cape Town earning more than the CA's in my area, and i'll believe that MBA > C.A.

in this country, NOTHING beats C.A.

I do agree that CA is no.1, but I think if you look at the top corporate earners in SA over the last few years, its a mix. I wonder if I could get those stats somewhere...