Most of the times, I get several questions on this topic. Most people want to know what the practical benefits of MBA are? Some of the most frequently asked questions which people ask on the benefits of MBA are:
1. What does MBA do? Why get an MBA?
2. Why Get an MBA degree and what shall I get out of it?
3. Does Studying MBA actually help?
These are what people normally ask. These may have been put in different words format, but the real issue people want to know is the same i.e. Benefits of getting an MBA degree. To answer the questions, the answer may be slightly different depending upon the perspective and background of the candidate. For example, benefits of studying MBA for a fresh business graduate may be different from the one who has got work experience within an organization. A fresh candidate may be thinking of the advantages from the degree only as compared to other subjects or fields. For instance, one may think whether to go for a master degree in marketing, finance, HR, etc. or replace it with Master in Business Administration. In such case, one may look at the overall usefulness of different subjects in comparison to MBA. On the other hand, one who has been working in an organization my look at the prospects of his career after completing the degree. One may well consider several things before embarking on the course such as opportunity costs, job risks, promotional opportunities, career advancement, financial gain or loss; and the list goes on.
Nonetheless, there are some top reasons which will generally benefit anyone who will study MBA to get the degree. The following are the top 10 benefits one would like to enrol on an MBA program in a business school or online.
1. Importance of MBA: Popularity and Demand
This is the age of business and industrial growth. Business organizations require skilled and knowledgeable managers to manage their business gain success in the highly competitive market. The demand for MBA graduates has increased tremendously during recent years. According to a survey 80% of the large corporations prefer to recruit an MBA for managerial positions in their companies. The continuous increase of demand for the course shows the degree of its popularity .
2. Job Opportunities for New Candidates
Many organizations have established business relationships with business schools around the world. This helps the development of social networking and creates business connections among the prospective employees and employers. If one is a fresh candidate, it is a great chance to grab a great job opportunity through business relationships, social networking and classmates from around the world. Those with work experience have even greater chance as organization are more interested to recruit candidates having knowledge as well as experience. Some working people can also take benefits from getting an executive MBA as it is shorter and more suited to the needs of those who have already got work experience. In case it is difficult to attend a business school physically, then one may look at online course offered by universities. The online MBA is becoming more and more popular as it offers a variety of benefits over the traditional one.
3. Promotions in Careers
Employers want to promote those who have better understanding of the operations of the business and can take business to new levels of success. Advancement in careers comes only with taking responsibilities and responsibilities are better discharged when equipped with better knowledge of your working field. It is more likely that an MBA graduate may be promoted to the next level within an organization simply because the next cadre may require special expertise or managerial skills. This, in turn, will increase an employee’s salary, pay, perks and other benefits. It also ensures to stay in the same organization. In other words, MBA is a sort of warranty or guarantee to be used as job security. Most Fortune 500 companies require their workers to be qualified before they are given a chance to climb up the corporate ladder. MBA offers the best solution to the hindrance in the way of climbing up the promotion ladder.
4. Managerial Knowledge and Skill
Managing an organization requires knowledge and skill to handle different situations and solve problems. Time may arise where managers have to handle tough situations in terms of products, services, business-growth, employees and other such issues. An MBA can benefit greatly from his knowledge to deal effectively and efficiently with such situations. Mangers have roles and responsibilities to steer the organization out of difficult and adverse times. Those having an MBA degree have added benefits over those with no such qualification. As the demand for more complex roles grow the demand for experienced, skill and knowledgeable managers shall grow even more.
Related background and levels of knowledge always add to the credibility of managers. The study of MBA provides a great change of thinking to fit in the new roles of responsibilities. Logical thinking, business like mindset, problem solving ability and analytical aptitudes are some of capabilities which can be acquired after getting an MBA degree. Whether the degree is in marketing, finance, HR, healthcare, accounting or general MBA, there is no doubt that why it should not get you a greater credibility to benefit your organization.
6. Time for a Change
Some people want to stick to their organizations and would like to spend their career in one organization. Other would like to change and look for further opportunities. There are several benefits of moving across several organizations. It is better to be more dynamic and broaden the experience spectrum rather than standing stagnant at one place. New offers and opportunities are always there for those who have a competitive advantage over their peers. Top corporations constantly search for individuals who are qualified and experienced and are capable to act as leader in new opportunities. Here comes the role of MBA into play.
7. Become Your Own Boss
MBA degree is both academic as well as professional. Once you have the store of knowledge and expertise, it is easier to establish your own business and be your own boss. After getting the hands on training, you can establish yourself as an independent entrepreneur. The knowledge and expertise achieved after doing MBA shall greatly contribute to make you Business savvy.
8. Work as Business Consultant
Many people work as independent business consultants after completing their degree. If you have some business experience, there is a great and profitable opportunity to work as independent business consultants. An advice by a Master in Business is often more trusted than non-professional advisors. Many people have established successful and lucrative careers by working as Business Consultants.
9. Expansion of MBA into Other Areas
There was a time that Master in Business Administration was either Marketing or Finance. This is no more the case. The scope of the degree has spread to many other areas such as accounting, information technology, health care, nursing, project management, human resource management, human resource development and many others. This trend is continuing and shall definitely spread across other disciplines.
10. Further Studies
A business study does not end with doing a Master. Business studies are so specialized that there is a separate name for getting doctorate in it. It is called DBA which stand for Doctor of Business Administration. If you are research oriented and would like to be involved in business academics, the best course is to enrol for DBA (Doctor of Business Administration) .
These are some of the benefits of MBA degree and this list is not exhaustive. The question of why study MBA depends upon the choices of the individual, his goals, ambitions and targets. The goals, the benefits and results may vary from individual to individual; there are some benefits like salary increase, promotions, career advancement, credibility, and new opportunities etc. which are some of the most common benefits of MBA.