Rivers 1

Paige Rivers

ENC2135 Spring

Amy Gulick

19 February, 2021

Final draft, 1956 words

MBA Today: Is it Worth Your Time and Money?

How much is an MBA worth in the modern corporate world? A Master of Business

Administration (MBA) is a management degree multiple business graduates and employees seek

to expand their career development. During the 1990s, business employees saw an MBA as a

direct, quick pathway to success. Today, however, global business leaders such as Elon Musk,

Sheryl Sandberg, and Mark Cuban publicly emphasize earning an MBA is a “complete waste of

time of money” (Dexter, 2018). Critics question the degree’s relevance and worth because of the

large gap between curriculum competency and employers’ managerial expectations (Tan and Ko,

2018). By examining past, peer-reviewed empirical studies, surveys, and statistics, the following

research answers why current graduate students or employees should earn an MBA and how it is

still valuable today.

A typical MBA program outlines basic teaching concepts students implement into their

schoolwork, internships, and future careers. Degree holders learn a variety of business and

managerial skills such as leadership strategies, management competencies, professional

development, and teamwork (Marino, Rivero, and Dabos, 2019). Students understand such

concepts from diverse case studies, speeches, lectures, group discussions, and internships. With

this degree, employees receive better long-term benefits, larger salaries, better networking

opportunities, certain advantages in the competitive market, etc. (Marino, Rivero, and Dabos,
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2019). However, certain realities come with the degree, meaning earning an MBA will take time

to see their effort pay off. Also, an MBA does not guarantee those precious benefits in every

industry. Liza Kirkpatrick, the director of the MBA program at Northwestern University, defines

“right” and “wrong” reasons for considering this degree. Some of the right reasons behind

considering an MBA include “to future-ready one’s career, explore new industries and roles,

accelerate career paths, and to expand and diversify one’s network” whereas some of the wrong

reasons include “looking for a pill for success, parents offer to pay for it, and boredom”

(Kirkpatrick, 2020). The author also emphasizes that an MBA does not guarantee success in

every industry, so understanding why a student or employee would consider earning this degree

should align with their professional goals and personal reflection before deciding to enter a

program. After talking with multiple professors and advisors, Rose Finkelstein, a current student

at the MBA program at Florida State University, says that “earning an MBA will not officially

pay off until four or five years into your career. It takes time, but earning this degree is still

worth it from a long-term perspective” (R. Finkelstein, interview, February 4, 2021). Both

Finkelstein and Kirkpatrick know an MBA will not immediately bring success. But, despite the

tremendous time, money, and effort to earn an MBA, with a little more time and patience, the

master’s degree will pay for itself and still provide more opportunities for growth and success

because of the long-term benefits outweighing the feared risks and costs.

Despite some of the overwhelming consequential factors involved, many undergraduate

students or employees continue to choose an MBA given its long-standing reputation as the

“golden ticket” to success. Critics, however, reveal flaws of MBA programs due to employers

recruiting graduates and discovering what they should have learned does not correspond with

their expectations in the work field. Dr. Randall D. Fisher, a professor and researcher at the
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University of Maryland University College, surveyed over six thousand MBA students and

recruiters regarding managerial competencies. Some of the following capabilities include

problem-solving, professionalism, communication, leadership, critical thinking, etc. He

concluded that “out of nineteen core managerial skills, recruiters determined only six skills

completed” (Fisher, 2019). Students failed to effectively apply basic curriculum material and

skills into the workforce, lowering their managerial competency to future companies and desired

benefits.

Employers also noticed that employees better grasp managerial skills because of the work

experiences they gained rather than learning through a textbook. Rose commented on this

specific criticism when she explained, “Where I truly saw myself grow and master managerial

strategies employers want was from my internships and jobs, not the program specifically” (R.

Finkelstein, interview, February 4, 2021). Ms. Finkelstein ultimately learned that with a

textbook, she was only taught basic concepts and definitions; but what makes graduates

proficient in managerial skills, she mastered those skills through her internships so she could

successfully apply them anywhere in her position now and in the future. The strength of the

MBA program also influences students’ ability to efficiently transfer their skills into the

workforce because how well the professors teach will impact how employers value the MBA

from the graduates’ job performance. At the University of Chicago, the degree program teaches

students “how to think” so “ no matter what problem they have at hand, they are going to be able

to solve it” (Tan and Ko, 2019). Teaching students how to think in different managerial

situations will better prepare students to integrate their textbook skills into reality. In all, taking

advantage of the classes and applying those skills to reality as soon as possible will make MBA

graduates more valuable than competing employees without this degree.

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Another popular criticism among recent researchers and business experts in the field

involves the lack in relevance of the degree. Many businessmen and women claim the field today

does not require an MBA to achieve success in their profession and prefers hirees to not have

them. In fact, Elon Musk, an inventor and investor at Business Magnet, publicly announced that

when hiring, “our position is that we hire someone in spite of an MBA, not because of one”

(Dexter, 2018). At his company, he believes MBA programs fail to teach students how to thrive

in one company and even create their own. Likewise, Mark Cuban, an investor and entrepreneur,

further comments, “If you have a hole in your knowledge base, there is a ton of online courses

you can take. I don’t give any advantage to someone in hiring because they have an MBA”

(Dexter, 2018). Both Mark Cuban and Elon Musk believe that due to the program's inefficient

teaching curriculum, if an employee does not have complete mastery of one skill, they could

easily learn it through experience or an online course, rather than spending an extraneous amount

of money trying to possibly master one skill. This perspective and public announcement results

in MBA graduates equal to those with lesser degrees, which persuades students and employees to

earn the degree, and thus fading its relevance as a whole.

The perspective on the degree’s lack in relevance continues even among less powerful

and local businesses as well. Christina Hedge, a Principal Consultant at Booz Allen Consulting

Firm, explains that during the hiring process for her individual team, she recruits those “not

exactly with the degree, but with the skills and values they proved during their internships that

will strengthen themselves and the project team as a whole” (C. Hedge, personal interview,

February 2, 2021). In fact, she herself did not immediately earn an MBA, graduated with a

degree in Economics, and now holds the high position of Principal, in line to be Vice President,

without needing the degree to get to where she stands now in the beginning (C. Hedge, personal
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interview, February 2, 2021). Rose Fineklstein finds herself currently in a similar position as

Mrs. Hedge. In an interview, she noted, “I am not trying to bash FSU, but the important

managerial competencies and skills I needed to master and thrive in, I learned through my

internships and volunteer work” (R. Finkelsetin, personal interview, February 4, 2021). Like

Mrs. Hedge’s interns and current employees, the values Ms. Finkelstein learned were not through

the MBA curriculum, but rather experience, prioritizing work experience and lessons over the

degree.

Regardless of the degree’s fading relevance among parts of the business realm, with an

MBA, graduates and employers have more opportunity to grow in their career field, possibly

reaching higher levels of success compared to other business candidates. Initially, MBA holders

receive better networking opportunities, connections, and advantages among the job markets

(Marino, Rivero, and Dabos, 2019). A graduate or employer with an MBA better stands out than

a graduate with a bachelor’s degree because they receive further guidance on professional

techniques that strengthen their managerial competency, unlike undergraduates. For example,

during the program, students listen to speeches from current fieldworkers, go to career fairs for

large industries seeking employment, and take advantage of professors’ advice that further set

these students apart from competing applicants. An MBA research team further emphasizes the

curriculum advantages to earning this degree saying, “An MBA opens up diverse career paths for

alumni” (Research Team, 2020). With these different career paths and opportunities at hand, the

team also emphasizes “there’s no limit to what one can accomplish” (Research Team, 2020).

Those with an MBA can transfer their skills to almost any industry, allowing them to access

greater opportunities to either grow in one’s career or change to a different occupation. More

room for growth also encourages a higher salary and better benefits for those employees as well
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because of their acknowledged success and promotions. In all, those who spend the time to earn

the master’s degree will receive better opportunities for career growth in the future.

Regarding the long-term, earning an MBA provides students and employees with greater

benefits in comparison to only earning a bachelor’s degree. Christina Hedge stated that “within

my first five years working at Booz Allen, my salary started increasing significantly more than I

expected. I asked my boss why, and he said it was because of my degree’s strength and how well

I applied my skills to the team during my internships” (C. Hedge, interview, February 2, 2021).

As Christina continued to improve her managerial skills, she received more promotions, larger

salaries, and better employee benefits faster than any of her other fellow employees. Other than

managerial concepts students learn through textbooks, they also learn other techniques that

improve their professional and personal self that increase their growth potential. Some of the

skills students begin to strengthen include their “soft skills, self-confidence, motivation to lead,

professional image, prestige, and career clarity and satisfaction” (Marino, Rivero, and Dabos,

2019). With these attributes, students can thrive in their own position while leading teams to

success.

Both program studies and work experience enhance students’ abilities to increase their

managerial competency and value to their company, ensuring more room for career growth and

success. Rose affirms this statement when she explained, “ After finishing my internships with

Aldi and a local store in Tallahassee, they said I would be a great addition to their team because

of the valuable strategies I learned through FSU’s MBA program” (R. Finkelstein, February 15,

2021). Because of the managerial concepts she learned through her program, she already noticed

a greater chance for growth in future careers. As for both Christina Hedge and Rose Finkelstein,

they both believe that earning an MBA is worth students’ and employees’ time. Thus, as they
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experienced already, better benefits outweigh the risks in the long-run, regardless of recent

criticisms.

In summary, a Master’s in Business Administration requires a significant amount of time,

effort, money, and motivation. Furthermore, recent criticisms expose the degree’s relevance and

large gap between curriculum competency and employers’ managerial expectations (Tan and Ko,

2018). But, despite the criticisms of earning this degree, students and employees receive more

than just debt and doubt. An MBA offers many valuable benefits like better networking

opportunities, job market advantages, larger salaries, better long-term benefits, and greater room

for career growth and success. Although some of the benefits may take longer to show in one’s

career, many current work field professionals and curriculum professors claim the degree’s

relevance and value still outweighs the fears and risks today. In all, an MBA will pay for itself

with a positive attitude, determination, patience, and time.

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References

C. Hedge, personal interview, February 2, 2021.

Dexter, S. (2018, June 5). 15 Successful Entrepreneurs Give Us Their Thoughts On the MBA

Program. Medium. https://medium.com/@dexter.shawn/15-successful-entrepreneurs-

give-us-their-thoughts-on-the-mba-program-fbae2c7b954a

Fisher, R. D. (2019, March 30). A Triangulation Assessment: The Value of an MBA Degree, An

Evidenced-Based Management (EBMGT) Systematic Review (SR). Academy of

Educational Leadership Journal. https://www.abacademies.org/articles/a-triangulation-

assessment-the-value-of-an-mba-degree-an-evidencedbased-management-ebmgt-

systematic-review-sr-8043.html

Kirkpatrick, L. K. (2020, December 7). Is an MBA Degree Really Worth It? Harvard Business

Review. https://hbr.org/2020/12/is-an-mba-degree-really-worth-

it#:%7E:text=An%20MBA%20(Master%20of%20Business%20Administration)%20is%

20a%20graduate%20degree,opportunities%2C%20and%20a%20bigger%20paycheck

Marino, J., Rivero, A. G., & Dabos, G. E. (2019). MBAs and career development: a literature

review from the human capital perspective. Cuadernos de Administración, 35(64), 110–

127. https://doi.org/10.25100/cdea.v35i64.6392

R. Finkelstein, personal interview, February 4, 2021.

Tan, B. S., & Ko, S. (2018). How relevant is the MBA: A revisit. Journal of Education for

Business, 94(1), 64–69. https://doi.org/10.1080/08832323.2018.1503587

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Annotated Bibliography

Encio, H. A., Refozar, R. F. G., & Laguador, J. M. (2018). Impact of Master in Business

Administration Program to its Graduates’ Job Performance. Asia Pacific Journal of

Academic Research in Social Sciences, 3, 51–60.

https://www.academia.edu/40325796/Impact_of_Master_in_Business_Administration_Pr

ogram_to_its_Graduates_Job_Performance

Encio, Refozar, and Laguado, the authors, examine the impact an MBA has on future graduates'

job performance. In the publication, the writers emphasize the benefits of earning an MBA, and

how these benefits, like networking opportunities, local employment, long-term salary, and

employee benefits, affect their job status in years to come. With these benefits, the researchers

predict graduates to quickly accelerate in their field and immensely grow in their career within

five years. The following authors work for the College of Business Administration at the

Lyceum of the Philippines University, who also published multiple peer-reviewed works through

the Asia Pacific Journal of Academic Research in Social Sciences. Encio, Refozar, and Laguado

incorporate studies that sample over sixty graduate students and previously published empirical

studies to defend their research. This article relates to other sources because the authors explain

similar individual benefits to earning an MBA degree, but focus on the types of job opportunities

available with an MBA and how this degree impacts their job performance in the short and long-

term.

Fisher, R. D. (2019, March 30). A Triangulation Assessment: The Value of an MBA

Degree, An Evidenced-Based Management (EBMGT) Systematic Review (SR). Academy

of Educational Leadership Journal. https://www.abacademies.org/articles/a-triangulation-

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assessment-the-value-of-an-mba-degree-an-evidencedbased-management-ebmgt-

systematic-review-sr-8043.html

The research article, written by Dr. Randall D. Fisher, describes the history of the MBA,

explaining its historical reputation of being the “golden ticket” for success in one’s career during

the late twentieth century. He then addresses the overwhelming criticisms of the program

curriculum, according to industry employers. Fisher also analyzes managerial competencies

expected from a student, the employer, and the graduate institution’s perspective, simultaneously

describing how the modern MBA curriculum meets and fails those expectations. This source

provides a realistic perspective on the value of an MBA from an employer’s standpoint and

brings an opposing view to entering the program. The author is a professor at the University of

Maryland University College and incorporates fifty-three empirical studies, fourteen informal

gray published articles, and ten employer-related surveys into his work to support his research.

This source relates to other journal articles because while Fisher explains criticisms multiple

professors and researchers expose, he further evaluates the degree’s worth through a triangular

assessment to discover how useful an MBA remains in business today.

Kirkpatrick, L. K. (2020, December 7). Is an MBA Degree Really Worth It? Harvard

Business Review. https://hbr.org/2020/12/is-an-mba-degree-really-worth-

it#:%7E:text=An%20MBA%20(Master%20of%20Business%20Administration)%20is%

20a%20graduate%20degree,opportunities%2C%20and%20a%20bigger%20paycheck

Liza Kirkpatrick reflects on the decision-making process behind considering an MBA. She also

describes the degree, its post-graduation benefits, and lists “right” and “wrong” reasons for

selecting this particular degree. She thoroughly explains the reality of each "reason", persuading
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readers to reflect on their true intentions to earning the degree. This source explains the crucial

benefits and risks of earning an MBA and provides a current perspective on considering the

degree’s value. Because the article was written by the managing director at the Kellogg School

of Management at Northwestern University, and published by the Harvard School of Business,

the article provides accurate and credible information. Also, the Harvard School of Business

ranks sixth among the top business schools nationwide, further strengthening Kirkpatrick’s

arguments and research. The article relates to other sources regarding the basic description and

elements of an MBA, but Kirkpath describes the degree from a decision-making standpoint by

persuading audience members to reflect on their personal and professional reasons behind

choosing an MBA as a career path and enhancer.

Marino, J., Rivero, A. G., & Dabos, G. E. (2019). MBAs and career development: a

literature review from the human capital perspective. Cuadernos de Administración,

35(64), 110–127. https://doi.org/10.25100/cdea.v35i64.6392

The journal article addresses recent criticisms on the fading relevance and managerial

competencies expected from MBA programs, and defends the degree from a human capital

standpoint. In the publication, the authors describe the positive impacts an MBA has on the

following types of human capital: educational (i.e. technical skills and business language),

intrinsic value (i.e. self-confidence, motivation, and career clarity), and social-cultural (i.e.

prestige, professional image, and professional experiences and networking). These positive

impacts confirm previously revealed benefits and strengthen the value and worth of the MBA.

The source also adds a different perspective on how beneficial the degree is to the individual.

The three authors teach at the UNICEN and have a Ph.D. in Administration and a BA in

Administration. The writers' professional backgrounds, while incorporating thirty-eight peer-

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reviewed articles, enhance the credibility and strength of the overall research. Like other sources,

the publication addresses program criticisms researchers expose. But, the work also defends the

benefits of earning an MBA from an individual capital perspective, intensifying the degree's

value graduate students should consider.

Mba.com. (2020, July 31). An MBA Opens Doors to a Variety of Careers | MBA.com.

https://www.mba.com/business-school-and-careers/career-possibilities/mba-opens-doors-

to-variety-of-careers

The authors discuss elements MBA graduates experience from earning the degree like industry

range, professional limits, career advancements, and marketplace conditions. The main idea the

writers express is the plethora of job opportunities awaiting due to the fundamental, versatile

business principles students learn through the program. Because the managerial concepts are

easily transferable and valuable to almost any industry, graduates encounter diverse opportunities

that will quickly accelerate their careers. The source also answers the main focus question

regarding the different job opportunities MBA graduates expect in comparison to a bachelor’s

degree, which further helps determine how beneficial and valuable an MBA is worth in business

today. The article offers accurate statistics from credible corporations such as The Graduate

Management Admission Council, a renowned global association that provides academic

resources and services to leading business schools. Like other sources, the research team

explains the significance of an MBA, but further describes its worth by emphasizing the variety

of opportunities graduates experience, unlike students with a typical bachelor’s degree.

Tan, B. S., & Ko, S. (2018). How relevant is the MBA: A revisit. Journal of Education

for Business, 94(1), 64–69. https://doi.org/10.1080/08832323.2018.1503587

 Rivers 13

Stephen Ko and Boon Seng Tan, the publication authors, re-examine criticisms regarding the

relevance of an MBA in the corporate world today. In the article, the writers outline the purpose

of an MBA program, its foundational teaching concepts, and how to incorporate those learning

concepts into their job. They also argue the overstated misalignment between the program’s

curriculum and actual managerial competency expected in the work field. Ko and Stephen’s

work, affiliated with the College of Business from the Nanyang Technological University in

Singapore and the Department of Management and Marketing from the Honk Kong Polytechnic

University, includes past research and peer-reviewed journal articles to strengthen their argument

regarding the degree’s relevance today. Because Ko and Tan distinctly emphasize the

comparison between the curriculum and management experience while partially outlining the

value of the degree, in which the degree’s worth depends on the strength of the program and how

well students can implement their skills, this source will directly impact further research and

results when evaluating the true value of an MBA.