The history of the MBA began with one important date. Dortmouth College (New Hampshire, USA) at the dawn of the twentieth century in 1901 awarded its graduates the degree of Master of Business Administration. At that time it was very relevant, but not as honorable as it is today. An MBA degree meant that a college graduate was ready to work in the field of production and the market. And only half a century later it became possible to get a business education in Europe. The leading educational institutions of London and Manchester in the UK were the first to pick up this wave. The rest of Europe "ripe" much later. Russia got acquainted with business education already in the 90s for obvious reasons.
The very first graduates of the MBA program appeared in 1908 at the Harvard Business School, which was opened in 1906. And 1907 was the year the Moscow Higher Commercial School was founded in Russia. It actually became the first business school in Russia and Europe. The initiators of the project were patrons and representatives of the elite Russian business. Although some historians believe that the beginning of the MBA era in the world was marked by 1902, since it was then that the Dartmouth College of Hanover in New Hampshire (USA) for the first time in history produced specialists who passed the M.C.S. (Master of Commercial Science). This program is considered in some way a prototype of the MBA. But historians consider this date controversial and inaccurate, therefore, 1908 is taken as the starting point for MBA education.
Of course, on this wave, a lot of schools were opened that attributed the prefix "business" to themselves. Time has shown which of them offered quality education, the rest simply disappeared, and real business schools eventually transformed their programs in accordance with Western models. They passed the quality test, having received accreditation. And it is their diplomas that inspire respect among employers and guarantee, if not a place in top management, then at least a warm handshake of the president of the company you are interested in and great prospects for the future.
True, such education is expensive. Therefore, many applicants choose to study at business schools that provide the so-called "pseudo MBA" (junk-MBA). They are not up to standard, but they are taught nonetheless. They are cheaper and shorter, which is why they are popular with uninformed or not too interested people.
If you are interested in a real, accredited MBA, contact AACSB (American Assembly of Business Schools), AMBA (The Association of MBAs - Association educational institutions awarding an MBA degree) or EQUIS (European Quality Improvement System - European Quality Improvement System). Today, it is these institutions that accredit business schools and MBA programs. It is in them that you will find the most reliable information about the quality of a particular Master of Business Administration training program.
No other curriculum in the last hundred years has undergone such major changes in such a record short time. And each of them dictated the need to adapt to the realities of the time. The very first business program included economics and accounting courses. Since America at that time needed these specialists due to financial instability in the state. It was like graduate school - you could go to study immediately after graduating from higher educational institutions. And this approach, along with the program, was quickly picked up by other states.
But at the same time, many very respected universities in America categorically refused to include the MBA course in their training programs because of the prejudice that it was “merchant”. It took time for society to become convinced of the need for such programs. But MBA's problems didn't end there. In 1959, two reports were published blaming the MBA program for its affordability. The authors argued that they should not resemble holiday homes, accessible to all, where you can have a great time. We feel the response even today - business education has become elitist, it has high requirements for the degree of preparation of potential candidates.
In parallel with the tightening of requirements for applicants, MBA schools began to pay more attention to research. In doing so, they earned the favor of representatives of academic education and incurred the wrath of representatives of business, who needed not theoreticians-executors, but ready-to-action, practice-oriented managers.
Therefore, in accordance with the requirements of the time, business schools had to divide the program into two parts: the first year offered basic disciplines, and the second included more specialized subjects, allowing students to choose more suitable for their purposes. This became the process of forming the classical model of the MBA course. Today's business schools have to update their curriculum materials quite regularly to keep up with the times. The latest trend has been the need to add disciplines to the program that have not previously received close attention, but, as practice has proven, they are no less important than law or finance. These are leadership, ethics, interpersonal and intercultural relations, etc. Modern MBA programs provide not only to “pump up” the graduate with theory and practice, but also to develop him as a person, setting the direction for his further growth.
History of the MBA in Europe
First European country, which has picked up a new trend in business education, is the UK. It was in England, in the 1960s, half a century after the United States, that the first European MBA schools appeared on the basis of the best universities in London and Manchester. Moreover, the idea of establishing such elite schools took root poorly - the founders were accused of copying American standards and breaking away from the realities of their own country. But now, half a century later, the London Business School is one of the recognized leaders in business education in Europe.
It should be noted that not all MBA schools in Europe have adopted the American model. For example, IMD, Henley, INSEAD, and Ashridge formed a group of companies that developed management training for their own employees. French business schools have created and strongly support regional and local chambers of commerce. The creation of the first Russian business school was initiated by the state: in 1988, a special resolution of the Council of Ministers gave the green light to the creation of the country's first professional business school - the Higher Commercial School.
MBA of the 21st century
According to rough estimates, every 250th resident in the United States has an MBA diploma, i.e. There are more than a million specialists of this qualification. Every year, several hundred thousand students invest millions of dollars in education. An MBA degree allows you to start a dizzying career, a large number of world-class business leaders who graduated from business schools in their time have already seen this: they now run companies such as Ebay, Nike, E-trade, Motorola, the Federal Reserve Bank and others. In Russia, the wave of business education was picked up by the Moscow Business School. Adapting to requirements modern business, Moscow Business School continues to create innovative products in the field of business education. The school is proud of its MBA Company and MBA Start projects. Thanks to the introduction of the latest multimedia technologies into the training course and the full support of their students during the learning process, the introduction of an effective software Moscow Business School is quite capable of bringing Russian business education to a higher level of competitiveness.
Recently, topmba.com, known for organizing the World MBA Tour, publishing MBA guides: The MBA Career Guide and MBA market research, conducted the International Recruiters Survey 2003, the largest employers in the world. The purpose of this large-scale study is to identify the latest trends in the business market -education and employment of MBA graduates. Read about some of them below.
Trends
The survey involved 4,000 employers - international corporations and companies that do not limit the search for high-class professionals outside their country. The globalization of business education and the MBA degree is one of the main trends identified by the study.
MBAs (Masters of Business Administration) are becoming in demand on a truly global scale, no matter if the employer is in Bombay or Buenos Aires, Boston or Brussels. And this expands the opportunities for business school graduates and makes them more mobile.
For example, in Lately the number of jobs for MBAs in New York has decreased, but in Beijing there is a real boom in these specialists. There has also been growth in Eastern Europe, Australia and India, countries that until recently had little interest in MBAs.
Graduates of lesser-known schools are slowly starting to compete with the elite. They do not have such high salary requirements, and knowledge is often the same. Many companies, especially those that are not among the international giants, prefer graduates of local strong schools to those who have a diploma from a world-famous school.
According to the study, the MBA hiring situation has improved this year compared to the previous year. This applies to two areas: production and consulting. Manufacturing companies that are especially active in developing an international network of branches (for example, Siemens, DaimlerChrysler, BASF) even create special programs to attract the best MBAs. Another fast growing market is IT and telecommunications companies. There are no significant changes in the financial sector. However, according to recruiters, next year growth is expected in all
areas. MBA salaries this year increased by 2%, but in general over the past seven years they have risen by 16.5%. Wage growth is projected to continue, especially in North America and Asia.
Building forecasts for the next year regarding the fate of the MBA, the experts are full of optimism. "Recruiters are returning to campuses and expect to recruit many more MBAs in 2004 than in recent years," says Alison Edmonds of the Manchester Business School. Her words are confirmed by Melissa Carlson from the American Tuck School of Business: "We expect 100 percent employment of next year's graduates."
Adrian Barrett, International MBA Employment Services, adds: "More and more small companies are hiring MBAs. It's working. chain reaction: first, one MBA gets a job in such a company, and having received the right to hire new employees, he attracts his own kind.
It is generally accepted that the holder of an MBA diploma is waiting for a career of a senior manager, whose area of responsibility includes strategic management and development of the company. Nevertheless, statistics show that the majority is engaged in consulting and marketing. The least popular area of application of the MBA diploma in recent times is e-commerce.
What do MBA graduates do?
Consulting - 18%
Marketing - 14%
Strategic planning - 12%
Consulting in the field of finance - 10%
Sales and development - 10%
Finance - 9%
General management - 8%
Operational management - 6%
IT/technologies - 5%
Logistics/purchasing - 5%
E-commerce - 3%
Top 10 MBA Hiring Consulting Companies in 2003
Accenture
AT Kearney/EDS
Boston Consulting Group
Booz Allen
Bain&Company
Deloitte Consulting
IBM Consulting
McKinsey & Co
Mercer Management Consulting
Roland Berger
Top ten banks and financial companies Hiring MBA in 2003
ABN Amro
American Express
Barclays Capital
Citigroup
Deutsche Bank
GE Capital
Goldman Sachs
JP Morgan Chase
Merrill Lynch
Morgan Stanley
top ten manufacturing companies Hiring MBA in 2003
Eli Lilly
Ford
General Electric
General Motors
GlaxoSmithKline
Johnson & Johnson
L "Oreal
Pfizer
Procter & Camble
Unilever
Top ten companies in the field high technology Hiring MBA in 2003
AOL Time Warner
AT&T
Bertelsmann
british telecom
IBM
Lucent
Microsoft
Philips
Siemens
Vodafone
What employers want
The study shows that more than half of employers (53%) are looking for candidates with experience from one to four years, 38% are interested in specialists with experience from 4 to 8 years. According to recruiters, it is these MBAs that have the optimal combination of youth, energy, professionalism and reasonable ambitions. Those with more than 8 years of professional experience are already counting on a much higher salary, higher position and more exclusive work. But there are few such candidates, and, accordingly, employers (9%), as well as absolute beginners without experience (5%).
Speaking about professional skills, employers put in the first place the ability to manage people, think strategically and leadership qualities. This, in their opinion, is much more important than academic, financial and IT knowledge. Among other important components of a successful candidate and future manager are entrepreneurship, knowledge of the international market and the availability international relations, the ability to think and work on a global scale.
What do MBAs want?
As you know, an MBA degree is obtained not only for the sake of a career, but also for the sake of a high income. The dot.com boom in 1999 propelled MBA salaries skyrocketing. However, the collapse of this market as early as next year and the economic recession that began in 2001 cooled the ardor of employers, and the average wage level fell. And only this year there is again a slight rise, which, according to forecasts, will continue in the future, and by the end of 2004 it will reach the pre-crisis level. (see graph 2). True, the growth of MBA salaries has been outlined only in the USA and Asia,
in Europe, everything remains the same. In anticipation of the next upsurge, experts advise not to waste time and accept a job that may not meet salary expectations, but can help develop professional skills, knowledge and connections. Although, despite the instability of the economy, the game is worth the candle: after all, according to statistics, an MBA diploma provides its owner with an increase in income by 50-100% compared to what he had before.
Average MBA salary in the US and Europe ($)
1996 - 65106
1997 - 66678
1998 - 66563
1999 - 73807
2000 - 78372
2001 - 81680
2002 - 74367
2003 - 75846
The highest salaries are in the financial sector, as well as the largest bonuses and compensations, as a result of which the average total annual income of MBAs working in this area exceeds $100,000. The second place in terms of financial attractiveness is currently occupied by consulting. However, if we take into account bonuses, then high-tech business (IT, telecommunications, telephony) is almost as good as it.
Total income by sector ($)
Production: salary 69392, bonus 13642
High technologies: salary 69281, bonus 20656
Consulting: salary 73964, bonus 16143
Finance: salary 81144, bonus 26107
Companies operating in the US and Western Europe offer approximately the same salary to MBA graduates. Slightly inferior are international corporations and investment banks located in Asia (but mainly in large financial centers - Hong Kong, Tokyo, Shanghai). More low income from MBAs in Latin America and Eastern Europe. This is due to a number of reasons: an unstable economy, less investment attractiveness, an unstable currency, and in addition, a lower cost of living. The latter, by the way, is of great importance when choosing
e places of work. After all, of course, real income is much more important than nominal. And the figures say that, for example, in Mexico the cost of living is 24% lower than in the States. This means that the noted 33% difference in salaries does not matter much, because the standard of living of a Mexican and an American with an MBA is about the same. At the same time, let's say Japan is 36% more expensive than the US, while the Japanese MBA receives on average 10% less, so his standard of living is significantly lower. According to the numbers, the best performer is an MBA who lives and works in Eastern Europe. On
For example, the cost of living in Hungary is 55% lower than in the US, and salaries are only 44% lower. There are no similar figures for Russia in the study. But given that Moscow is one of the most expensive cities in the world, it is unlikely that the same optimistic picture would have turned out as with Hungary.
Average MBA salary by region ($)
USA - 76953
Western Europe - 75929
Asia - 70182
Latin America - 51070
Eastern Europe - 49667
Patrick McDonald
Caroline Zimmerman, along with her MBA from INSEAD Business School, acquired the usual set of benefits: an understanding of business fundamentals and a wide network of connections. However, one skill was not offered by the program - programming in Python.
Python is one of the most important tools in Zimmerman's work (she leads the analysis and data processing at the music company BMG). However, her lack of technical skills didn't stop her from applying for the job, because at INSEAD she learned how to face challenges—not to be afraid of them. And Zimmerman taught herself Python in online courses.
The desire to learn something new that you don't know is valued more than broad knowledge in the tech sector, Zimmerman says.
The ability to solve complex problems is one of the five most sought-after skills for MBA graduates by employers, according to the FT's 2018 FT MBA Skills Gap Survey. More than 70 of the world's largest employers took part in the study.
The FT data shows that employers tend to hire graduates with the right social and psychological qualities (soft skills), such as the ability to work in a team and find mutual language with the most different people(among the most important they were named by 64 and 54% of FT respondents, respectively).
MBA programs traditionally provide a variety of professional knowledge and work skills (hard skills), and, according to employers, candidates with the necessary professional skills (for example, who accounting who know marketing, economics, programming or foreign languages) is easier to find.
Susan Sandler Brennan, assistant dean of the Sloan School of Management at MIT, says positive social-psychological qualities will help those with them protect their jobs in the era of automation. However, at the stage of hiring an employee, such qualities are more difficult to assess than the same accounting skills. Now companies are increasingly using preliminary online testing of candidates, which means that only applicants with the necessary professional knowledge and experience reach the interview stage. The ability to build, maintain and expand relationships can be very valuable to an employer, but without the necessary technical skills, a graduate will not be invited to an interview, says Sandler Brennan.
Leading employers are increasingly skeptical about business schools as a channel for training employees with the necessary skills - both socio-psychological qualities and professional knowledge.
The Most Important Skills for Employers
1) Ability to work in a team 2) Ability to work with a wide variety of people 3) Ability to solve complex problems 4) Ability to build, maintain and expand relationships with people 5) Time management and the ability to prioritize
"We expect candidates professional experience, the ability to manage a team and coordinate work with clients,” says Anna Purchas, Partner at KPMG UK. Consulting company is looking for candidates with experience in their field, with leadership qualities and enthusiastic about their work. However, KPMG UK found that such candidates can be found not only in business schools, but also in other companies, especially in the technology sector. “We're not in the business of recruiting MBA graduates, and we don't even keep track of how many of our employees have that degree,” Purchas said.
Employers from all industries have admitted that big data analysts are the hardest to find. 13% of FT respondents said it was impossible to hire such specialists.
Candidates for positions at KPMG related to cybersecurity or data analytics should be proficient in programming languages such as Python and R and data visualization tools such as Tableau.
Zimmerman says that the lack of technical subjects in the MBA program did not affect her satisfaction with the course, the acquired knowledge and experience were already valuable, but she feels that business schools do not pay enough attention to technical skills, while many of their graduates go to work to the technology sector.
Sangeet Chufla, CEO of the Graduate Management Admission Council (the organization that administers business school entrance examinations), says business schools are trying to add technical disciplines to programs and this process is proceeding quite quickly.
Still, a third of tech companies surveyed by the FT said they had the hardest time finding MBA graduates with programming skills.
Five Skills Employers Are Hardest to Find
1) Ability to influence others 2) Strategic thinking 3) Energy and resilience 4) Ability to analyze big data 5) Ability to solve complex problems
Almost half of the survey participants admitted that they had difficulty finding business school graduates with the skills and qualities they needed, and that the difficulty was getting worse every year.
Chufla recommends that business schools act in two directions: to identify candidates with the right employers potential and force students in the learning process to solve unusual problems and interact with people who are different from them. All this will help them in their work.
MBA graduates generally agree with employers that the right psychosocial qualities are most important, the FT survey found. However, they value their strengths than employers. Graduates from elite business schools most often cited energy and resilience, as well as the ability to solve complex problems, as their strongest qualities. Recruiters say these are the qualities they find hardest to find in business school candidates. Sandler Brennan acknowledges that MBA graduates overestimate their abilities.
Translated by Nadezhda Belichenko
The Financial Times conducted a survey among employers about the skills and abilities that they want to see in MBA graduates. The respondents were 48 companies distributed across 12 sectors of the economy ( financial activities, retail, e-commerce, etc.). Companies are localized all over the world: representatives from the USA, Europe, Brazil, China, Nigeria and other countries were included in the research pool.
The essence of the survey is to assess the skills and abilities of applicants with an MBA diploma. In total, 29 such skills (soft and hard skills) are presented, and companies need to choose the most and the lack of important ones. The survey was conducted anonymously.
Most Important Skills
- Ability to work with different people (“voted” by 76% of respondents).
- Effective time management (72%).
- Understanding Influence digital technologies and business innovation.
The most significant skills for respondents are soft skills (“soft skills”), while “hard skills”, basic subject knowledge, were assigned a secondary role. At the same time, companies said that finding a graduate who is able to manage their time is quite difficult.
The absence of hard skills in the top five, according to respondents, is associated with the specifics of the activities of specific companies. In narrowly focused industries (for example, oil and gas, civil engineering, transport and energy), the presence of an MBA diploma is not a decisive factor in favor of choosing an employee for a job. leadership position. Employers are not sure that business schools provide industry-relevant knowledge and teach the right skills.
Least Important Skills
- Marketing skills.
- Statistics skills.
- Corporate responsibility and environmental management.
- Programming.
- Highly specialized financial knowledge and skills.
Another reason to classify "hard skills" as less important is that employers are unsure if case studies in MBA programs will suit their companies. According to respondents, most of the cases studied in business schools are based on examples of large American corporations. The acquired knowledge is difficult to apply to small companies with their own traditions and regional characteristics.
Most Difficult Skills to Recruit
- Using social media to increase profits.
- Coaching or coaching skills, ability to teach others.
- Financial forecasting.
- Working with big data (Big data).
- Brand building and brand story writing skills.
Difficulties begin when a candidate with technical skills and experience is looking for a managerial position. For example, a product manager in an IT company must be both a good manager and know the Big Data analysis methodology. Therefore, not only an MBA diploma is important here, but also qualifications in the industry.
Easiest Recruiting Skills
- Marketing skills.
- Project management.
- Communication skills. Networking.
- Ability to solve complex problems.
- Ability to work with different people.
Finding an MBA graduate with practical skills in marketing or project management is easier, as these subjects are more commonly taught in business schools.
Based on ft.com research
Written and translated by Inna Koldun
Despite the crisis, there is still a gap in the global labor market between MBA graduates and those who do not have such a degree. Recruiters compete among themselves for young talent from business schools. Nunzio Quacquarelli, editor and topmba.com, talks about the latest on this topic.
In an era of financial instability and intense global competition, the MBA degree is becoming a safe haven for young professionals aspiring to career growth. For the first time ever, continental European business schools reported higher wages graduates than their US and UK counterparts, while the US continues to be the leader in terms of bonuses and awards.
The median salary for MBA graduates in consulting is $101,137, surpassed only by salaries in telecommunications and high technology at $106,142. In comparison, the median salary for a candidate who has four years of work experience but did not complete an MBA is $66,271, and a candidate who worked four years in the field of telecommunications - $ 74,378.
In developing countries, salaries for MBA graduates range from $32,000 to $160,000. It is unlikely that these salaries will decrease, given the projected demand for managers in the coming years.
MBA graduates in media and entertainment are in third place at $97,295 compared to $63,745 for candidates with four years of industry experience. The salaries of people with a master's degree or PhD are also always lower than MBA graduates.
On average, a business school graduate who joins a bank earns $89,169. By comparison, a non-MBA colleague with four years of banking experience earns an average of $80,236. sector reached $140,000 and a rather low $25,000 in some emerging markets.
KPMG, the global market leader in providing audit, tax and consulting services, in Europe traditionally prefers simple accountants, rather than candidates with an MBA degree. Lord Michael Hastings, Global Head of Diversity at KPMG International, says things are changing. KPMG is constantly working with clients around the world who are not only asking for advice when faced with tax problems. They are interested in how they could function and best develop their business in countries where difficult situations arise. An MBA degree opens up broader prospects than a standard one financial education.
Salaries of MBA graduates depending on the region
A weakening dollar and an obvious increase in compensation in countries Western Europe led to the fact that salaries for Western European MBA graduates average $99,156, compared with $91,283 for graduates in North America (more in).
Salaries in other regions, apparently, are also being pulled up to this level. Wages in Asia and the Pacific rose by more than 10% in 2008 to an average of $83,380 (Australia, Japan, Singapore, Korea, Taiwan, excluding data from China, India and Thailand).
Salaries in Latin America are also growing quite rapidly, reaching an average of $70,456 in 2008. In all regions, international corporations offer higher salaries to MBA graduates than local companies.
Within countries, salaries for MBA graduates are 20% higher in capitals and financial centers than in small towns. The UK saw the highest salary of $111,000 in 2007 thanks in large part to London-based recruiters. It is not known if the pattern will remain the same next year.
Comparing salaries in different regions, MBA graduates must also take into account living expenses - the real ratio of expenses and compensation in a particular country and company.
Every year the OECD (Organization for Economic Co-operation and Development) publishes a study comparing purchasing power in different countries. Purchasing power in Mexico City is 24% higher than in the US, according to the study. Despite the fact that salaries for business school graduates in Latin America are 23% lower than in North America, graduates living in Mexico City will be able to afford more than their counterparts living in the US. In contrast, Japanese purchasing power is 36% lower than in the US, but higher prices will lead to lower living standards if wages are the same as in other countries.
* The QS TopMBA.com Salary & Recruitment Trends Report is published in August each year. Its summary results are available on TopMBA.com for registered candidates for the QS World MBA Tour exhibition and other QS forums and events.
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