I've read quite a bit of press about the state of MBAs today - are they still relevant? My personal view is that with an MBA you buy a brand name on your CV that will open doors.
Management consultancies and investment banks are starting to get more specialized in their needs and searching out more and more specific focused masters and PhDs that can 'bring specific value' to their activities. In the world of business today, what role is there really for a generalist - it's a differentiated role out there today.
So I'm not sure how long the price you pay for the 'brand that opens doors' is going to be valid. Soon enough, if not already the economical equation as it stands just won't stand the test.
The way I see it the biggest recruiters of MBAs historically, IBs and MCs, are going to reduce proportionally MBAs in their firms. Industry, is not going to take up the slack. MBAs have some tough rethinking of their programs, the cost of them - and the actual learning that goes on there - can they teach more relevant skills to those that actually get used afterwards? Having done an MBA I have to say that much of what I learned hasn't been used - I'm an entrepreneur and ex-management consultant though, so it could be those niches.

I share your view that MBA is less relevant today unlike 15-20 years ago. My believe is that universities realize that companies have become more specialize than ever. Therefore, universities around the world creates alternative post-grad programs, such as master in financial engineering, statistical finance, master in management, master in applied finance, master in investment management, etc.

The changes in the education scene make people to enroll in such programs because it is more affordable, faster and more focus. And companies welcome people with degree from these programs.

These programs cannibalize the popularity of MBA program.
Having said that, everybody wins:
- the universities can get more enrollments
- the public can afford a post-grad degree,
- companies can hire people with specialized degree with lower pay compared to hiring MBA grads

Nevertheless, people are still applying for an MBA because teach people in holistic manner. It teaches about marketing, accounting, finance, organizational behavior, etc.
It gives choice of career path; whether you want to be enterpreneur, executives in banks, big4 accounting firm, management consulting, NGO, law firm, museum, circus, automotive, telecom, commodity, etc.

Therefore, MBA is like a multi-career-paths platform.

Rhino ..your argument is impeccable.

An MBA is not just about the subjects that are taught, it is also about the people who are involved. Part of the value of any good MBA program is the network that can be developed. While it is true that students in all academic programs develop relationships with their cohort, MBA students meet and interact with future business leaders. A lot of times it?s not what you know but who you know when searching for a job or developing a business relationship. Having someone on the inside who can say, "I know this guy, he was in my MBA program," opens doors to new opportunities. It is difficult to quantify the value of a good network of professional contacts.

There is also a change underway in the global business environment. Modern business is increasingly international in scope and having a national point of view can be restrictive. Many of the U.S. business schools have been slow to change their established curriculum in response to the changing business world of the 21st century. Case studies are often U.S. centric or view international issues through the goggles of the U.S. perspective. It will be interesting to see how business schools develop over the next decade with increasing competition from all over the world to provide the best education to the next generation of leaders.

I think that the real risk to potential students is the mindset that the MBA credential will somehow set them up. With the large number of MBA graduates every year, companies have large pools of potential MBA candidates to choose from. While in the past the MBA helped to set one apart from the herd, today it is becoming a requirement for entry at many large firms, even at junior levels of management. MBA graduates need to be able to market themselves and not just rely on the name on their university diploma to do it for them.

This makes me wonder if M.S is actually better than MBA!!!
Please post opinions

M.S. is for specialist role.
M.B.A. is for management role.

That's my take.

Having said that, it doesn't mean that you cannot step upward to management role with only M.S.

M.S. is for specialist role.
M.B.A. is for management role.

That's my take.

Having said that, it doesn't mean that you cannot step upward to management role with only M.S.

If you are undecided between an engineering degree and an MBA, there is a program which may have what you are looking for. MIT has a program in Systems Design and Management which is taught by a partnership between the Sloan School of Business and the MIT Engineering Division.

http://engineering.mit.edu/education/graduate/sdm.php

I would say that a MSc program is more for expertise. I've got a friend at BI Norwegian School of Management who is doing an MSc in Energy Management. The school is also the first school in Norway to receive the EQUIS international accreditation.

I suppose it's less of a necessity to have an MBA in order to climb the ladder, however I think it still has it's value in teaching all of the skills to make you a well rounded business person/entrepreneur OR to specialized in your field like mentioned in the comment above with BI Norwegian specialized courses.

I've since come to the conclusion that Master level education really isn't necessary anymore. From what I see in the 'marketplace' the people who do best are people who learn on the ground, who self-study, who get mentors - and who put the work in to get good and deliver results.

You must've all noticed the trend in measuring the performance of everyone on metrics - it's becoming increasingly hard to use a degree or something less than 'proof of results' to improve your career. Also with the social media and the spread of reputations through sites like LinkedIn its becoming easier to evaluate people.

Time is really better invested in more practical self education with mentors, self study and just gaining experience.

Yes and no. It's certainly not unnecessary. And I wouldn't say it's becoming easier to evaluate job candidates because of social media. It's becoming easier to get information about them, but there's still an issue with the value of that information. For better or worse, a solid degree from a solid school still punctuates someone's resume more than a paragraph about their experience with mentors and years of self-study.

But you're right. I think many people come into Master's education with waaay too many expectations.

The dumb answer is: they're worth it when you consider the roles and salary increases they'll secure. But you have to bear in mind that an MBA is a longer-term investment than most applicants expect - salary expectations very often outstrip the real world... They've never been a free ticket, but they've always been a smart option for someone who wants to build on a background as strong as yours.

MBA for me is gaining the experience in a faster and smarter way. It can be applied to any kind of job and it will definitely fast track my career. This is very important these days as industries just come and go.