Master of Business Administration
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Reverted edits by [[Special:Contributions/EugeniyTS|EugeniyTS]] ([[User talk:EugeniyTS|talk]]) to last version by Washburnmav
{{Redirect|MBA}}
{{dablink|EMBA redirects here; for the Mutation Mink Breeders Association, see [[American Legend Cooperative]]}}
The '''Master of Business Administration''' ('''MBA''') is a [[master's degree]] in [[business administration]], which attracts people from a wide range of academic disciplines. The MBA designation originated in the [[United States]], emerging from the late 19th century as the country [[industrialized]] and companies sought out [[scientific management|scientific approaches to management]]. The MBA degree has since achieved worldwide recognition.
[[School accreditation|Accreditation]] bodies exist specifically for MBA programs to ensure consistency and quality of graduate business education, and business schools in many countries offer MBA programs tailored to full-time, part-time, [[corporate title|executive]], and [[distance learning]] students, with specialized concentrations.
Each year, well-known business publications such as ''[[Business Week]]'', ''[[US News & World Report]]'', ''[[Fortune (magazine)|Fortune]]'', ''[[Financial Times]]'', and the ''[[Wall Street Journal]]'' publish [[business school rankings|rankings]] of selected MBA programs that, while controversial in their methodology, nevertheless can directly influence the prestige of schools that achieve high scores.
==Background==
The first American [[business school]], [[Wharton School of the University of Pennsylvania]], was established in 1881. The [[Tuck School of Business]], part of [[Dartmouth College]], was the first graduate school of management in the United States. Founded in 1900, it was the first institution conferring advanced degrees ([[Master's degree|masters]]) in the commercial sciences, the forebearer of the modern MBA. The [[University of Chicago Graduate School of Business]] first offered working professionals the Executive MBA (EMBA) program in 1940, and this type of program is now offered by most business schools today.
In 1950 the first MBA degrees were awarded outside the United States by the [[University of Western Ontario]] in [[Canada]],<ref>[http://www.ivey.ca/about/history.htm Richard Ivey School of Business] page showing awarding of first MBA in 1950, one year ahead of the University of Pretoria's claim</ref> followed in 1951 with the degree awarded by the [[University of Pretoria]] in [[South Africa]].<ref>[http://www.gsm.up.ac.za/why.htm University of Pretoria] page claiming to have awarded the first MBA outside of America</ref> The [[Institute of Business Administration]], [[Karachi]] in [[Pakistan]] was established in 1955 as the first Asian business school by the [[Wharton School of the University of Pennsylvania]]. In 1957, [[INSEAD]] became the first European business school to offer an MBA program.
The MBA degree has been adopted by universities worldwide.
===Accreditation===
Business schools or MBA programs may be accredited by external bodies which provide students and employers with an independent view of their quality, and indicate that the school's educational curriculum meets specific quality standards. [[The Association to Advance Collegiate Schools of Business]] (AACSB) and the [[International Assembly for Collegiate Business Education]] (IACBE) both accredit business schools worldwide.
The United States also has six regional accreditation agencies as members of the [[Council for Higher Education Accreditation]] (CHEA): [[Middle States Association of Colleges and Schools]] (MSA), [[New England Association of Schools and Colleges]] (NEASCSC), [[North Central Association of Colleges and Schools]] (NCA), [[Northwest Commission on Colleges and Universities]] (NWCCU), [[Southern Association of Colleges and Schools]] (SACS), and [[Western Association of Schools and Colleges]] (WASC).<ref>{{cite web
| last = Koenig
| first = Ann
| authorlink =
| coauthors = Lofstad, Rolf
| title = Higher Education Accreditation in the United States
| work =
| publisher = EAIE Conference
| date = [[2004-09-18]]
| url = http://www.eaie.org/pdf/torino/205.pdf
| format = [[PDF]]
}}</ref>
Other U.S. accreditation agencies include the [[Association of Collegiate Business Schools and Programs]] (ACBSP) which typically accredits smaller, private American schools, and the International Assembly for Collegiate Business Education (IACBE). In addition, MBA programs with specializations for students pursuing careers in healthcare management also eligible for accreditation by the [[Commission on the Accreditation of Healthcare Management Education]] (CAHME).
Accreditation agencies outside the United States include the [[Association of MBAs]] (AMBA), a UK based organization that accredits MBA, DBA and MBM programmes worldwide; the Council on Higher Education (CHE) in South Africa; the [[European Quality Improvement System]] (EQUIS) for mostly European and Asian schools; and the Foundation for International Business Administration Accreditation (FIBAA) in Europe.
===Basic types of MBA programs===
'''Two year MBA''' programs normally take place over two academic years (i.e. approximately 18 months of term time), in the Northern Hemisphere beginning in late August/September of year one and continuing until May 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.
'''Accelerated MBA''' programs are a variation of the two year programs. They involve a higher course load with more intense class and examination schedules. They usually have less "down time" 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.
'''Part-time MBA''' programs normally hold classes on weekday evenings, after normal working hours. 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.
'''Executive 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.
'''[[Distance learning]]''' MBA programs hold classes off-campus. These programs can be offered in a number of different formats: [[correspondence course]]s by [[postal mail]] or [[email]], non-interactive [[broadcast video]], pre-recorded video, live [[teleconference]] or [[videoconference]], offline or online computer courses. Many respectable schools offer these programs; however, so do many [[diploma mill]]s. Potential students should check the school's [[School accreditation|accreditation]] before undertaking distance learning coursework.
Dual MBA programs combine MBA degree with others (such as an [[Master of Science|MS]] or a [[J.D.]], 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. Some business schools offer programs in which students can earn both a bachelor's degree in business administration and an MBA in four or five years.
==Admissions criteria==
Most programs base admission on the [[Graduate Management Admission Test]] (GMAT), significant work experience, academic transcripts, essays, references or letters of recommendation, and personal interviews. Schools are also interested in extracurricular activities, community service activities and how the student can improve the diversity and contribute to the student body as a whole. All of these qualifications are important for admission; however, some schools do not weigh GMAT scores as heavily as other criteria. In order to achieve a diverse class, business schools also consider the target male-female ratio and local-international student ratios.
Most schools are first concerned with whether or not the applicant can handle the quantity of course work. The [[GMAT]] (the quantitative score) and academic transcripts help determine this. Once the school determines that the student can succeed academically, they examine the remainder of the application to evaluate the applicant's experience and leadership abilities.
==Program content==
Most top MBA programs cover similar subjects within their core required courses. For information about the typical content of an MBA program's core curriculum, see the overview at the [[v:School:Business/Masters of Business Administration|Wikiversity MBA]] topic page.
===Breadth===
MBA programs expose students to a variety of subjects, including [[economics]], [[organizational behavior]], [[marketing]], [[accounting]], [[finance]], [[strategic management|strategy]], [[operations management]], [[international trade|international business]], [[information technology management]], [[supply chain management]], [[project management]], government policy, and [[ethics]]. Students traditionally study a wide breadth of courses in the program's first year, then pursue a specialized curriculum in the second year. Full-time students typically seek an internship during the interim.
===Specialization===
Many programs allow students to specialize or concentrate in a particular area. Standard concentrations include [[accounting]], [[corporate strategy]], [[decision sciences]], [[property management]], [[economics]], [[entrepreneurship]], [[finance]], [[general management]], [[human resources]], [[international business]], [[marketing]], [[information systems]] / [[information technology]], [[telecommunication]], [[organizational behavior]], [[project management]], and [[operations management]]. Unspecialized MBA programs often focus second-year studies on [[strategic management]] or [[finance]].
In addition, a program may offer more specialized concentrations such as Asian business, [[consulting]], sports management, or degrees emphasizing [[real estate]] or [[insurance]]. Many schools offer unique concentrations available nowhere else.
==The MBA degree in Europe==
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===History of the MBA in Europe===
In 1957, [[INSEAD]] became the first European university offering the MBA degree, followed in 1964 by [[IESE]] (first two-year program in Europe), [[London Business School]] in 1965, The University of Dublin (Trinity College), the [[Rotterdam School of Management]] in 1966, the [[Cranfield School of Management]] in 1967 and in 1969 by the [[HEC School of Management]] (in French, the École des Hautes Études Commerciales) and the [[Institut d'Etudes Politiques de Paris]]. In 1991, [[IEDC-Bled School of Management]] became the first school in the ex-socialist block of the Central and Eastern to offer an MBA degree.
===Bologna Accord===
In Europe, the recent [[Bologna Accord]] established uniformity in three levels of higher education: Bachelor (three years), Masters (two years in addition to three years for a Bachelor), and Doctorate (eight years). Students can acquire professional experience after their initial bachelor degree at any European institution and later complete their masters in any other European institution via the [[European Credit Transfer and Accumulation System]]. A European masters degree in Management is therefore equivalent to the American MBA having additional scientific content; for example, a European MBA requires writing and defending a master's [[thesis]].
===Accreditation===
Accreditation standards are not uniform in Europe. Some countries have legal requirements for accreditation (e.g. most German states), in some there is a legal requirement only for universities of a certain type (e.g. Austria), and others have no accreditation law at all. Even where there is no legal requirement, many business schools are [[School accreditation|accredited]] by independent bodies voluntarily to ensure quality standards.
===United Kingdom===
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The UK based [[Association of MBAs]] (AMBA) was established in 1967 and is an active advocate for MBA degrees. The Association's accreditation service is internationally recognised for all MBA, DBA and PEMM programs. AMBA also offer the only professional membership association for MBA students and graduates. UK MBA programs typically consist of a set number of taught courses plus a dissertation or project.
Persons holding an MBA from the world's top 50 business schools (according to the list published by the UK government<ref>[http://www.hm-treasury.gov.uk./pre_budget_report/prebud_pbr04/assoc_docs/prebud_pbr04_admba.cfm 50 Qualifying MBA programmes], Her Majesty's Treasury Pre-Budget Report 2004 (December 2004).</ref>)
automatically receive the minimum score necessary to qualify for the UK's [[Highly Skilled Migrant Programme]], which is being phased out. This program entitles the person to a two-year UK work permit, renewable for an additional three years, if that person is gainfully employed at the time of renewal.<ref>[http://www.workingintheuk.gov.uk/working_in_the_uk/en/homepage/schemes_and_programmes/hsmp.html Information about the Highly Skilled Migrant Programme], Working in the UK website.</ref>
===Germany and Austria===
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[[Germany]] was one of the last western countries to adopt the MBA degree. In 1998 the ''Hochschulrahmengesetz'' (Higher Education Framework Act), a German federal law regulating higher education including the types of degrees offered, was modified to permit German universities to offer master's degrees. The traditional German degree in business administration was the [[Diplom]] but since 1999, bachelor's and master's degrees have gradually displaced the traditional degrees (see [[Bologna process]]). Today most German business schools offer the MBA. Most [[States of Germany|German states]] require that MBA degrees have to be accredited by one of the six agencies officially recognized by the German ''Akkreditierungsrat'' (accreditation council), the German counterpart to the US-American [[Council for Higher Education Accreditation|CHEA]]. The busiest of these six agencies (in respect to MBA degrees) is the Foundation for International Business Administration Accreditation (FIBAA). All universities themselves have to be institutionally accredited by the state (''staatlich anerkannt'').
In [[Austria]], MBA programmes of [[private university|private universities]] have to be accredited by the Austrian Accreditation Council (''Österreichischer Akkreditierungsrat''). State-run universities have no accreditation requirements, however, some of them voluntarily undergo accreditation procedures by independent bodies. There are also MBA programmes of non-academic business schools, who are entitled by the Austrian government to offer these programmes until 2010 (''Lehrgang universitären Charakters''). Some non-academic institutions cooperate with state-run universities to ensure legality of their degrees.
===France and French speaking countries===
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In France and in the [[Francophone]] countries such as [[Switzerland]], [[Belgium]], and [[Quebec]] ([[Canada]]), the [[Hautes Études Commerciales]] (HEC) schools' MBA degree programs at the public accredited universities are similar to those offered in the [[Anglosphere|Anglo-Saxon]] countries. [[English language|English]] is the main learning language but [[French language]] may also be necessary for admission at some schools.
===Ukraine===
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Recently MBA programs appeared in Ukraine where there are now about ten schools of business offering a variety of MBA programs. Two of these are subsidiaries European schools of business, while the remaining institutions are independent.
==The MBA degree in Africa and Asia==
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Today, MBA and [[Doctor of Business Administration]] (DBA) designations can be found in many countries and even accessed through [[on-line]], [[distance learning]] or [[e-learning]]. Because of the varying standards of MBAs worldwide, many business schools are [[School accreditation|accredited]] by independent bodies.
===South Africa===
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In 2004, South Africa’s Council on Higher Education (CHE) completed an extensive re-accreditation of MBA degrees offered in the country. The process was the first of its kind in the world to be undertaken by a statutory body and attracted widespread international media attention for its innovation and thoroughness.
===Ghana===
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Business schools of the traditional universities run a variety of MBA programs. In addition, foreign accredited institutions offer MBA degrees by distance learning in Ghana.
===India===
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There are 1600 business schools in India offering two year MBA program; predominantly targeting fresh students without any experience. Among those schools, the [[Indian Institutes of Management]] (IIM) are the oldest institutions for management education in India. Gaining admission to any of the IIM schools requires passing the [[Common Admission Test]]. The institute offers a post-graduate diploma in management which is recognized in India as similar to an MBA degree. Non-government accredited, one-year fast-track MBA programs have grown in India, especially for candidates with work experience. Such programs are commonly known as Post Graduate Programme (PGP) in Business Management.
===Rest of Asia===
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International MBA programs are acquiring brand value in Asia. For example, while a foreign MBA is still preferred in [[South Korea]], 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]], [[Taiwan]], [[Malaysia]], [[Singapore]], [[Iran]] and [[Thailand]].
For North American 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 done for Asia Pacific schools by the magazine Asia Inc. which is a regional business magazine with distribution wolrdwide.
==MBA program rankings==
{{Seealso|List of United States business school rankings}}
The MBA degree has become one of the most popular masters' degrees. As more universities started offering the degree, differences in the quality of schools, faculty, and course offerings became evident. Naturally, establishing some criteria of quality is needed to differentiate among MBA programs, especially for prospective students trying to decide on where to apply. As MBA programs proliferated, a variety of publications began providing information on them. Some of these consisted of compilations of information gathered from the universities offering the degree, usually published in book form. Eventually periodicals began publishing articles describing various MBA schools and ranking them according to some perceived quality criteria. One of the most prominent of these is ''[[Business Week]]'', which devotes a biennial issue to ranking MBA programs. ''[[Financial Times]]'', ''[[The Economist]]'', ''[[Forbes]]'' magazine, ''[[The Wall Street Journal]]'', and ''[[U.S. News & World Report]]'' also publish MBA program rankings. See the External links section below to view some of these rankings.
Different methods of varying validity were used to arrive at rankings of MBA programs. The ''[[Gourman Report]]'', for example, did not disclose criteria or ranking methods,<ref>Selingo, Jeffrey. [http://chronicle.com/free/v44/i11/11a00101.htm A Self-Published College Guide Goes Big-Time, and Educators Cry Foul]. ''Chronicle of Higher Education'' ([[1997-11-07]]).</ref> 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.<ref>Bedeian, Arthur G. [http://www.siop.org/tip/backissues/tipjan02/07bedeian.aspx Caveat Emptor: The Gourman Report]. ''The Industrial-Organizational Psychologist'' (June 2002).</ref> In 1977 ''The Carter Report'' published rankings of MBA programs based on the number of academic articles published by faculty. Periodicals based their rankings on interviews with company recruiters who hired MBA graduates, surveys of MBA schools' deans, polls of students or faculty, and a variety of other means. The defunct ''MBA Magazine'' asked deans to vote on the best programs. The methods of obtaining ranks often changed from year to year. Initially, rankings included only a small number of universities consisting of the largest and best known Ivy League and state schools. There are also many privately compiled rankings, including the Global Top 100 Business Schools compiled by the QS network.
The ranking of MBA programs has been discussed in articles and on academic Web sites.<ref>
{{cite web
| last =
| first =
| authorlink =
| coauthors =
| title = Caution and Controversy
| work =
| publisher = [[University of Illinois at Urbana-Champaign]]
| date =
| url = http://www.library.uiuc.edu/edx/rankoversy.htm
| format = [[HTML]]
| doi =
| accessdate = 2005-09-06 }}</ref>
Critics of ranking methodologies maintain that any published rankings should be viewed with caution for the following reasons:<ref name="MRN">
{{cite journal
| last = Schatz
| first = Martin
| authorlink =
| coauthors =
| title = What's Wrong with MBA Ranking Surveys?
| journal = Management Research News
| volume = 16
| issue = 7
| pages = 15–18
| date = 1993
| publisher =
| url = http://officialmbaguide.org/whatswrong.php
| format = [[HTML]]
| id =
| doi = 10.1108/eb028322
}}</ref>
*Rankings limit the population size to a small number of MBA programs and ignore the majority of schools, many with excellent offerings.
*The ranking methods may be subject to biases and statistically flawed methodologies (especially for methods relying on subjective interviews of hiring managers).
*The same list of well-known 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 the school itself, but some schools offer MBA programs of different qualities (e.g. a school may use highly reputable faculty to teach a daytime program, and use adjunct faculty in its evening program).
*A high rank in a national publication tends to become a [[self-fulfilling prophecy]].
*Some leading business schools including [[Harvard]], [[INSEAD]] and [[Wharton]] provide limited cooperation with certain ranking publications due to their perception that rankings are misused.<ref>{{ cite news | last=Hemel | first=Daniel J | title=HBS Blocks Media Access to Students | publisher=[[The Harvard Crimson]] | date=2004-04-12 | url=http://www.thecrimson.com/article.aspx?ref=358753 | accessdate=2008-01-29}}</ref>
One study found that objectively ranking MBA programs by a combination of graduates' starting salaries and average student GMAT score can reasonably duplicate the top 20 list of the national publications.<ref name="MRN" /> The study concluded that a truly objective ranking would be individualized to the needs of each prospective student.<ref>The [http://officialmbaguide.org/ Official MBA Guide] uses this approach, allowing students and researchers to rank a large population of MBA programs based on a wide range of criteria and combinations.</ref> 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 still are not tailored to individual needs, and their value is diminished if they use an incomplete population of schools, fail to distinguish between the different MBA program types offered by each school, or rely on subjective interviews.
==See also==
===Related information===
*[[Graduate Management Admission Test]] (GMAT)
*[[Business school]], for a more comprehensive understanding of business programs
*[[:Category: Business schools]]
===Other business degrees and certifications===
*[[Master of Accountancy]] (MAcc or MAcy)
*[[Bachelor of Commerce]] (BComm or BCom), an [[undergraduate degree]] in business management
*[[Bachelor of Business Administration]] (BBA), a [[bachelor degree]] in business administration
*[[Doctor of Business Administration]] (DBA), a [[doctorate]] in business administration
*[[Certified Business Manager]] (CBM), a professional credential based on the MBA curriculum
*Master of Business Communication (MBC), a specialized business degree focused on corporate communications, public relations and marketing communications
*[[Master of International Business]] (MIB), an emerging alternative to the MBA degree
*[[Master of Science in Finance]] (MSF)
*[[Master of Science in Management]], suitable for students with no work experience or with Bachelor's degrees in non-business subjects
*Master of Science in Administrative Studies (MSAS), Program which includes courses in business, communications, marketing, and management but is less structured than an MBA, letting the student select courses based on their interests.
===MBA accreditation agencies===
* [[Association to Advance Collegiate Schools of Business]] (AACSB)
* [[Association of Collegiate Business Schools and Programs]] (ACBSP)
* [[Association of MBAs]] (AMBA) (UK)
* [[International Assembly for Collegiate Business Education]] (IACBE)
==References and Notes==
{{reflist}}
==External links==
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===MBA ranking resources===
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===========================({{NoMoreLinks}})===============================-->
*[http://www.bschool.com/ussbys.html Compilation of business school rankings] between the ''Wall Street Journal'', ''Business Week'', and ''U.S. News & World Report''
*[http://rankings.ft.com/rankings/mba/rankings.html ''Financial Times''] online rankings of MBA programs
*[http://mba.eiu.com/ ''The Economist''] online rankings of MBA programs
*[http://officialmbaguide.org/top40.php?rnk=info Top 40 MBA program rankings] from the ''Official MBA Guide'' public database of MBA programs
*[http://bwnt.businessweek.com/bschools/06/mba_main.asp ''Business Week'' 2006 business school rankings]
*[http://grad-schools.usnews.rankingsandreviews.com/usnews/edu/grad/rankings/mba/brief/mbarank_brief.php ''US News & World Report'' graduate business school rankings for 2008]
*[http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr04/assoc_docs/prebud_pbr04_admba.cfm Top 50 MBA programs] as determined by the United Kingdom government (not in rank order)
*[http://www.mba4success.com/main_rank.php ''Whitefield Consulting Worldwide Rankings''] online rankings of MBA programs
*[http://gmaa.asn.au/files/GMAAStarRating2007.pdf Australian MBA 2007] rankings from "The Graduate Management Association of Australia" 2007
{{Academic degrees}}
[[Category:Master's degrees|Business Administration, Master]]
[[Category:Business qualifications]]
[[ar:ماجستير إدارة الاعمال]]
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[[ja:経営学修士]]
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[[pt:Mestrado em administração de empresas]]
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[[uk:Магістр ділового адміністрування]]
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