Abstract

Success of any organization mostly depends on the competent workforce of the organization. Competency refers to the qualities, skills and abilities which generally obtained by the individuals through participating in different formal training and education programs. Professionals are now more interested in enhancing their capabilities through gaining new knowledge and skills in meeting their job demand and career development. The professionals look for MBA, an advanced academic degree in management under business education seems essential qualification for becoming a successful manager. Professionals hope their betterment in job and career by admitting such educational programs. The objective of this paper is to review the literature for understanding the significance of MBA program on professionals’ knowledge, skills and career development. Opportunities of MBA education on a part time basis considered as blessing for the job holders in developing their managerial knowledge, skills and career. The professionals aim in obtaining managerial knowledge and skills besides availing career development opportunities being a graduate of an MBA program. Therefore, the MBA graduates frequently claim that they have better managerial efficiencies than their non-MBA colleagues. Thus, the projected outcomes of the MBA degree attract most of the professionals to admit in this type of education programs.

1. Introduction

Globalization has brought not only benefits but also different challenges for the countries, organizations and individuals alike. Organizations are preparing themselves in myriad ways to face these challenges. Most of the time success of any business organization depends on having a competent management team and a proficient workforce. Generally, formal education or training helps in developing human resources of the organizations. More specifically, management courses play very significant role to the participants in enhancing managerial skills and adjusting with ever changing business environment ¹. The MBA is recognized as an advanced academic degree in management ². Masters of Business Administration (MBA) programs are growing all over the world for its recognition as a tool in career management ³. Over the recent years, demand of MBA education on a part-time basis has increased tremendously to the different job holders. Having an MBA degree is considered as a passport for a managerial role ⁴. An EMBA program is primarily designed to educate working executives, managers, entrepreneurs, and other business leaders who are in their mid to late 30s with having 6-15 years of working experience at a managerial level to sharpen their decision-making competencies and skills using advanced analytical methods. Most of the cases the syllabus contents for both the full time MBA and an EMBA program are similar but EMBA students get immediate opportunity to apply their lessons in the workplace that they learn in their classes ⁵.

2. Opportunities of Professionals’ Development and EMBA Program

Qualities, skills and abilities are crucial antecedents for success in managerial careers. MBA studies help the managers to become professional and get a better position in the workplace. The MBA seems to provide a tangible asset for its holders in terms of recognition and respect ². Master in Business Administration (MBA) is considered as the flagship of business studies education that would help the people to become effective leaders as well as managers. Corporations look for the best people to develop their managerial inventory. Therefore, individuals strive to gain skill, competencies, and qualifications. Both corporations and individuals seek to make an investment in this regard that would yield the best return ⁶. The Master of Business Administration (MBA) course is probably the most popular management training course to the managers who want to upgrade their managerial skills ⁷. MBA degree viewed as vehicle for career advancement and career change for the younger employees those are interested in promotion and career redirection ⁸. Preference of the MBA course is in increasing trend to the majority of students as a post graduate course. Students with diverse backgrounds like engineering, medicine, agriculture are enrolling or wishing to enroll for MBA. A large number of institutions offering MBA by considering this overwhelming demand ¹. The EMBA programs with different courses are offered by many universities and business schools to meet up the needs of the industries ⁵. The universities began executive education program in order to provide advanced management training to mature, highly motivated, and experienced managers ⁹. The number of students has been increasing in graduate management education on a part-time basis ¹⁰. Private and public institutions are offering different types of MBA program so that an executive can handle the total wants of an organization by getting a MBA degree from an institution ¹¹. The MBA program is conducting by a number of schools in many different forms including night classes and weekend. Students in cities around the U.S. eagerly attend programs at night despite putting in a full day’s work ¹². More than 100 universities and Business Schools are offering EMBA program alone in the USA. EMBA students participate in their full-time jobs and attend classes Friday through weekend. They move their way toward earning a higher degree in management in order to get promotion in higher level of management and become a valuable asset for their organizations ⁵. Different executive development programs including MBA are the general evolution of adult education. A need was perceived for a high level of manager education at the graduate and professional level in the beginning of the late nineteenth century. MBA degree program started at Wharton in 1881 and Harvard in 1908. Executive MBA degree program in university is increasingly available to the managers who are interested to participate in a general university version of executive education ⁹. Demand of EMBA is increasing not only in Business Schools in North America but also in Asian countries due to the increased globalization of business and trade ⁵. The number of applications to management education such as an Executive MBA (EMBA) program in Asia is increasing according to The Financial Times in 2012 ¹³. The economic growth of Asia remained on a growth spree and International Monetary Funds (IMF) forecast of 5% spree in growth for 2018, requiring more talented, skillful and strategic managers and leaders. Therefore, the demand for MBA and EMBA is rising in Asia ⁵. Management education and MBA programs are now spreading rapidly, led by Hong Kong (six local universities offer an MBA or similar programs), Singapore (with some 40 MBA programs), and also Japan. The picture of UK is also same ². The working students are mainly found in the part-time and evening courses in Japan, since most of the companies do not feel interest in sending their employees to graduate schools for two full years ¹⁴.

EMBA creates an opportunity to the working executives to obtain an MBA degree in their leisure period. A range of electives and work-related projects along with compulsory modules in EMBA program help the students to develop soft skills that will help them immediately in providing solutions to problems in their organizations and receive career progression in various functional areas. Therefore, senior management in organizations has been attracted by the university-based executive education program ⁵. Whether part-time or full-time, An MBA program provides an individual with time and space away from work to think about their career orientation and aspirations ¹⁵. Though a major investment of time and money is required in accomplishing an Executive MBA but it plays a significant role at a pivotal time in an adult’s life. Professional progression and skills development are the main expectations of mid-career managers when enrolling on an Executive MBA program ¹⁶. One-third of the students in EMBA programs of various business schools come from general management, followed by group with accounting and finance background, sales and marketing and others represent from engineering and information technology. Business Schools around the globe are offering EMBA with different focus rind modules where duration of such a program ranges from 12 months to 24 months. The focus of teaching and learning in such program is generally on leadership; team work, visionary and global outlook, stress management, communication and social strategy. Additionally, EMBA program also offers flexibility to the students to choose their course projects based on issues they deal with in their jobs ⁵. The MBA program has a similar impact like other fields of professional education ¹⁰. MBA programs prepare the students for increasingly complex organizations and careers ¹⁷. The Master in Business Administration (MBA) degree is recognized around the globe as a widely accepted qualification in business management. The MBA leads to enhance managerial success ². MBA program increases several skills to its participants that are not generally obtained through work experience alone ¹⁸.

3. Significance of EMBA Program in Developing Knowledge, Skills and Career of the Professionals

Management is now widely recognized as a profession. Organizations can opt to invest in sending high-potential employees to study for MBAs to improve their managerial talent. The MBA has a positive impact on both the employers and employees since the MBA graduates are in general better managers and their employers benefit from their competencies ⁶. Masters in Business Administration (MBA) degree has become a popular means of development aimed at acquiring management skills and enhancing career opportunities over the past 20 years ¹⁵. The role of MBA is significant to the graduates’ careers and their employing organizations. MBA contributes considerably to make its graduates as human capital for any organization. Both the employer and country may be benefitted directed or indirectly by the role of MBA ⁶. MBA's degree can produce good managerial & time management skills; enhance capability of good communication and writing skills. The MBA degree holders know well about how to handle workplace stress, hold financial insight and better in time management ¹⁹. Employees with MBA degree are better in communication skills. They are good decision makers, holds better leadership qualities and able to handle job related tasks and responsibilities in a better way. They are also better learners and skilled to adapt with changing situations than non-MBA employees ²⁰. The MBA program increases the learning skills of its students. The students of MBA have reaped benefits from their studies and are satisfied with their careers. The students’ achievement in terms of competency and personal skills acquired can be seen as the added value that an MBA provides ⁴.

The value of the MBA is embedded in the increases in the four sources of capitals, which are social capital (networking skills, circle of friends, and gaining trust of peers), administrative capital (interpersonal and leadership skills, ability to integrate information, and business judgment), logical capital (ability to model problems, integrative thinking, and computer skills) and ingenious capital (innovativeness, ability to deal with ambiguity, and work habit) ³. It seems that MBA graduates are well-equipped with presentation and research skills alongside the most important skills such as stress management, interpersonal skills, time management; self-confidence and decision making ²¹. MBA degree helps in enhancing self-confidence, communication skill, effective writing, oral presentation, research skills of its holders. MBA degree also enhances career advancement and decision making skills. MBA degree has great influence on conflict and stress management. The MBA's are competent than other business graduates ¹⁹. MBA has now been recognized worldwide as an effective way of developing a professional and internationally competitive managerial class originated in the United States. Demand of management education at every level—from junior supervisors to CEOs has been increased due to the need for competitive managers globally. The Chinese government has devoted to the development of management education in general and Master of Business Administration (MBA) education in particular to increase the supply of qualified managers ²². It is becoming imperative for the working executives to improve their management practices, skills end leadership capabilities through management education programs, for example, an Executive Management Business Administration (EMBA) to embrace changes, adapt challenges and remove obsolesce in their work place. The current trend indicates that business managers are pursuing their higher degrees in management to sharpen their managerial and leadership capabilities ⁵. The EMBA allowed the opportunity to network with professionals from different backgrounds and sectors ²³. Executives look for EMBA to enhance their skills and decision-making ability. There is an increase in the demand for future leaders and EMBA act as a catalyst. An EMBA is considered as a future investment for the executives. An EMBA degree is becoming essential to the business executives for developing a strong professional network, enhancing key knowledge, skills and accelerating career progression ⁵. The adults in spite of working full time at administrative positions in the public and private sectors mostly join MBA programs to improve managerial skills, extend business insight and career development while employability and economic gains were ranked low as driving forces ²⁴. Beside personal satisfaction, financial reward and career improvement criteria were important to MBA students in choosing to pursue a program. A career change, status, or family pressure considered as reasons for obtaining the MBA cited by less than half of the respondents ¹². A master’s degree in management is considered as a gateway to employability ¹. Many perceived MBA as a passport to the managerial ranks in or across companies, or as the means to accomplish a career move, either internal or external. The MBA degree helps in increasing employability and looks good on a CV for a managerial career ². MBA is considered as the significant factor in career change and development. The benefits of the program to graduates were judged to be substantial in terms of relevance, knowledge gained, and behavior changed ²⁵. Most of the managers strive for career development and promotion. The MBA graduates were doing well in achieving the development to which they aspired ²⁶. The MBA degree helps in career advancement and progression expressed in terms of both upward opportunities within the same organization and lateral opportunities in other fields or industries for the mid-career students ²⁷. MBA degree makes one fast track career success that may take the form of improved salary and climbing the career ladder ¹.

MBA graduates believe that they are better performers in the areas of problem-solving, leadership, and team collaboration than their peers without MBAs. There is a positive relationship between MBA education and its graduates’ employment, annual income, and job promotion in both short and long terms. ²⁸. The MBAs perceived themselves better in different managerial competencies such as managing others, time management, research and accountancy skills, working in teams, decision-making, self-confidence, interpersonal skills. Such differences indicate that the MBAs have a higher level of self-efficacy than the non-MBAs ². MBA degree has positive effect on career advancement demonstrated by Descriptive and inferential statistical tools. The MBA's have diversified skills which help them in acting worthy managers ¹⁹. Employees with MBA degree generally performs better in managerial positions than those who do not hold ¹. The MBA graduates get better chances of being promoted and being employed due to having their diversified skills. MBA degrees develop multi skill personalities of the students which proving their selves as better managers for business organizations because these personals are strong enough than other professionals ¹⁹. The employees with MBA get more attention at the time of performance appraisal than the non-MBA employees. The authorities reward the performance of the managers with MBAs, perhaps because of a fear that, otherwise, they would be faster than others to leave. This is considered as a kind of `reputation effect’ of an MBA on career outcomes ². Status of MBA significantly influenced in career development of its graduates. As a graduate of MBA, both fulltime and part-time MBA students would be equally move up to top-level executive positions. The influence of MBA GPA, pre-MBA work experiences, and ethnic backgrounds are absent in career development of the MBA graduates’ ²⁸. The effect of MBA studies is positive on skills, employability and compensation, where a much moderate effect is observed on career advancement ²⁹. Besides increasing business knowledge and skills, an MBA education can have a positive effect on employee–employer integration levels ³⁰.

4. EMBA Program and Women’s Experiences

MBA increases self-confidence of the individual and reduce workplace discrimination. The potential value of having an MBA deals with discrimination due to gender in organizations ³¹. Women acquired new skills from the Executive MBA programs and they had new understanding of the world ³². Women acquired the career competencies who had undertaken an EMBA ²³. Simpson (2000) conducted a study in the UK between 1995 and 1996 to find out the role of management education, specially the effectiveness of MBA in facilitating career progress. Results suggest that the benefit of MBA varies from men to women. Men ultimately have the advantage in terms of pay and status, while women appear to benefit more than men in term of intrinsic career factors such as credibility and confidence. ³³. Women proportionately hold more MBAs than men. It is found that nearly one in five women directors hold an MBA within the top 200 companies dataset ³⁴. Besides improving business competencies of women participants, the MBA program contributed to the creation of a clearer managerial identity, greater assertiveness, and increased credibility in a managerial role ³⁵. The acquisition and development of knowing-whom defined as networking with peers, friends, alumni and faculty considered by the Taiwanese women managers as a key outcome of their EMBA experiences. The study indicates that building of relationship plays significant role in career development ¹³.

5. Views of Employers’ towards MBA Degree

Companies consider MBA as a career development strategy for its high flyers. The companies send employees to study for an MBA is a sign of investing in people. This step helps in creating professional managers and getting the best out of them ². The firms offer premium salaries to the MBA degree holders’ because of the tremendous demand and recognition of the degree as ‘‘seal of approval’’ that the person being hired was well trained, bright and ambitious ³⁶. The corporate sector become interest to hire MBA graduates for their attributes to think analytically and strategically, complemented by leadership skills, quantitative skills and communication skills ⁴. Many firms are willing to trust and “empower” MBA graduates with a great deal of freedom and responsibilities in order to keep individual managers aligned with the company’s quest for quality and competitiveness ²⁹. Over the years, public and private organizations have sent their senior management to university executive programs, one of the primary sources of executive education with the aim of turning functional specialists into general managers ³⁷. Larger companies have proportionally more MBA holding directors than smaller companies ³³. An employee participating in a MBA program would have decreasing job performance was not felt by the executives. The executive suggested that an individual should first receive a bachelor’s degree, go to work, and then pursue the MBA. Seventy percent students in the United States are enrolled as part-time out of over two hundred thousand MBA students ¹². The hiring managers perceive that MBAs have better managerial skills than non-MBAs. The managers have been found that employees with MBA degree are better in; ‘communication skills’, ‘decision making skills’, ‘demonstrate better leadership qualities’, ‘handle job related tasks and responsibilities in a better way’, ‘are better learners’ and ‘are more adaptive to changing situations’ than non-MBAs ²⁰.

6. Conclusion

EMBA program can help a person to develop many of the abilities needed to be an effective manager or staff analyst. It is important that program seeks ways to involve and engage the part-time students as fully as they do the full-time students since the number of people participating in graduate management education on a part-time basis (i.e. while working in fulltime jobs) has been increasing ¹⁰. Managers of higher learning institutions should focus on developing market driven courses that enhance job performance and be relevant to the current market needs for capturing employability. ¹. Organizations need to be flexible in time allocation, and accept the sharing of commitment during the studying period since they need a future managerial force. A sponsorship of MBA studies can be proven to be a great motivator for the best manager of the year. Organizations can pay or subsidize MBA fees and should not automatically deter organizations from investing in their employees without examining its benefit against the cost. MBA graduates are in general better managers and can serve organizations well ⁶. MBA may be a good opportunity for the frustrated employees to get learning in specialized area and become able to switch their jobs in the future if requires ⁵.

References