Career focus: Studying for an MBA

The Masters of Business Administration is becoming de rigueur for senior and middle managers. Wai-Ching Leung tells you what it is and how to get it

Since the 1970s, it has almost become fashionable to study for the master of business administration (MBA) degree - not only for those engaged in the commercial and industrial sector but also for professionals such as engineers, teachers, police, lawyers, nurses, and doctors. Although the cost for studying for an MBA is 5-10 times that of other masters programmes, over 7000 MBA graduates a year are produced in Britain. The MBA is no longer a passport to a well paid job - it is a basic qualification for any middle or senior post with substantial management responsibilities.

Senior doctors are increasingly expected to undertake management duties. The recent affairs at Bristol Royal Infirmary further highlighted the importance of doctors acquiring management competencies. These factors may partly account for the increasing number of doctors pursuing the MBA.

What is an MBA?

The MBA is a generalist qualification in business administration open to first degree holders of any discipline. Its aim is to equip managers with sufficient knowledge and skills in the main functional areas in business without making them specialists in any of these areas. Most MBAs con- sist of core modules, elective modules, and a dissertation. The core modules generally include business statistics, economics, organisational behaviour, accounting, human resources management, marketing, operations management, and business strategy. Although the knowledge elements presented in the modules may be similar to those in an undergraduate course, the students are expected to show a critical ability commensurate with a postgraduate level. Students usually have a choice of elective modules to suit their interests or field of work. In the dissertation, students usually apply the knowledge learnt in the modules to aspects of their work. Occasionally, the dissertation could be entirely theoretical.

Apart from these similarities, MBA programmes differ considerably from one another in other aspects such as time commitment, duration, reputation, choice of elective modules, styles of teaching, and profiles of fellow students.

Why study for an MBA?

You may wish to study for an MBA for various reasons:

Professional development and career progression - Doctors with substantial management duties in the health services may wish to study for an MBA in order to facilitate a reflective approach in their work. The qualification would certainly add weight to their career progression if they aspire to positions with more management responsibilities in the health services. Alternatively, doctors working in pharmaceutical or medical equipment companies may be sponsored by their companies to study for an MBA.

Opening up avenues to other career options - One example might be to enter management consultancy training after an MBA, with a view to offering management consultancy advice to health organisations in future. A second example may be to enhance the prospects of seeking a manager's position in a pharmaceutical or medical equipment company. However, it is important to remember that most large companies sponsor employees to study for an MBA if they aspire to managerial positions.

Educational experience - The MBA contains subjects of contrasting nature (both quantitative and qualitative) that are substantially different from medicine. Students on MBA programmes often bring rich and varied management experience as well as different academic backgrounds which can be shared. Hence, some doctors study for an MBA for the educational experience and intellectual stimulation the course provides.

Relevance to a particular specialty - Although it can be argued that manage- ment is relevant to all clinical specialties, it has particular relevance to some specialties such as public health or occupational health medicine.

Costs

Unless you are sponsored by your employer, the financial commitment is considerable as the total fees currently range from about £8000 to £18 000 depending on the school. The cost is much more when loss of earnings is also taken into account. The high level of fees is entirely accounted for by market forces and cannot be explained by the staff and resources required to run these courses. If you are not sponsored, a possible source of funding is from the business school loan scheme administered by the Association of Masters in Business Administration. Loans are available only to students registered on one of the programmes accredited by the association.

An important consideration is how likely you are to recoup the costs by higher future earnings after gaining the MBA. Surveys of MBA graduates suggest that most recovered their investment, but there are no data for medical MBA graduates.

There is also considerable time commitment. Even a part time MBA requires at least 15 hours of study a week for two to three years, which could be a considerable burden for those with a busy full time job.

Choosing the programme

Over 100 UK schools run the MBA programme, many running more than one programme. Details of the individual programmes can be found in Golzen's Official MBA Handbook,¹ and details of MBA programmes worldwide can be found in Which MBA?²

You should first decide whether you wish to study full time, part time, or by distance learning. The table on the BMJ's website shows the advantages and disadvantages of each. Clearly, considerations of your current job, your career objectives, and financial matters are paramount. However, the benefits you may obtain can differ with different MBA programmes. Students on full time courses are generally young, keen, and academically brilliant and come from countries all over the world. However, they may have limited management experience. Full time students at the top business schools represent the "cream" of the MBA graduates and have a good chance of being recruited into management consultancy training. Students on part time courses are generally local, more mature and experienced, and have to balance their academic work with their family and work commitments. With distance learning courses, con- tact with other students is usually limited. The possible exception is the Open University programme, which makes extensive use of electronic conferencing, tutorials, and summer school.

Choosing a school

Job or family commitments are important considerations. An important indicator of the quality of the programme is accreditation by the Association of Masters in Business Administration (AMBA). The programmes of only 32 business schools are accredited, and the details can be obtained from the AMBA or its web page ( www.mba.org.uk/accredited_programmes.cgi). An MBA from one of these accredited schools would stand you in good stead in most management positions. However, it should be remembered that an unaccredited programme is not necessarily of poor standard. You simply need to do more research yourself.

Students in these schools generally have a high GMAT (graduate management admission test) score (average of 600 or over), and the fees are £17 000 or over. Be warned, however, that, while most top business schools charge high fees, not all schools that charge high fees are "top."

With a first degree, you can be reasonably confident of being accepted into an MBA programme given the large number of institutions competing for students, unless you insist on entering one of the top business schools. For some part time programmes, you may also be required to have management experience, although most schools accept clinical experience as relevant. The top business schools require you to sit the GMAT, which tests your verbal and numerical ability, but other business schools usually waive this requirement. The GMAT is a US test administered by the Educational Testing Service. Details on the test can be obtained from the GMAT Advice Centre. You are usually required to attend an interview, which also provides the opportunity for you to meet other students and find out more about the programme.

Life as an MBA student

Clearly, the culture and atmosphere differ considerably among the programmes. Enthusiasm, competitiveness, lively debates, and social activities are more a feature of full time than part time programmes. Most MBA guides and newspaper articles describe the work in MBA programmes as intense and difficult. This might be true in the top schools, but most doctors would find the work involved in the average AMBA accredited MBA programme manageable, although the volume of work may be slightly greater than that of other masters degrees. There are strict but reasonable deadlines for assignments. Case studies and group project work are frequently used. Students often help each other as the contrasting nature of the different subjects means that few students are good in all of them.

Like most masters degrees, the MBA is ungraded. A few students may drop out because of conflicting family or work commitments, but rarely because of lack of academic ability. In some institutions such students may be awarded the lesser prize of a certificate or diploma in management studies if they have already completed a substantial proportion of the course. Nearly all students will get their qualifications in the end if they persevere, even if it means resitting one or two examinations.

Alternatives to the MBA

Alternative management qualifications Include Membership of the Institute of Healthcare Management - This can be achieved via different routes. Details can be obtained from the institute.

Certificate or Diploma in Management Studies - These qualifications may be Worth - while for those who cannot decide if they want to study for a full MBA. A few business schools grant exemptions to holders of these qualifications from certain modules of their MBA programmes.

Specialist MBA - A few institutions offer MBA in healthcare management. While it may be particularly relevant to your work, one disadvantage is its lack of transferability to other work situations.

Although an MBA clearly has the potential to enhance your career with appropriate career planning, you occasionally hear doubts about whether it actually adds to a manager's work performance. As a masters degree, the MBA does not adopt a prescriptive approach but exposes students to a range of management thinking, enabling them to be critical and reflective of their own work. It has the potential to add value to their work, although the business schools clearly have no control over whether students choose to apply what they have learnt to their work.

1. Golzen G. Official MBA handbook. The Association of MBA's guide to business school. London: Pitman, 1999.
2. Which MBA? A critical guide to world's best programs. London: Pitman Publishing, 1999.