Why a Graduate Degree?

     My great moment of realization came one day as I was working with an actuarial pension valuation project. I was contemplating the numbers of actuarial liability, and realized corporate pension plans have much more influence on our labor and financial market than we realize. Studies have shown that the reason behind the recent hype in the stock market is the way the CFOs of big corporations have been stating pension assets in their financial statements. This peaked my interest and prompted me to consider the overall impact of pension plans on the local and global economy. I decided to pursue a MBA leading to a doctoral degree with a goal toward pursuing research in Pension Finance and Economics.

     I believe a doctoral degree would enable me to combine teaching and research into a career that also allows opportunities to advise business and government on economic issues. Teaching at the college level is more than a one-way channel; I hope to learn from the students' questions and my colleagues' experience. It is true that economics in today's world has been confined to a business-oriented social science; however, I also respect the philosophical and intellectual dimensions of the subject.

     Before I made a final decision on a MBA program, I did some research and read articles about MBA programs. Professor Jeffrey Pfeffer (2002) of Stanford Business School published an article in an Academy of Management journal about our traditional MBA program. Part of this article was published in major US newspapers such as USA Today, Business 2.0 and San Jose Mercury News (2002).

     At one point Professor Pfeffer said that more than 95% of the time spent in a MBA program is wasted, because the whole program could be taught in 120 hours in a boot camp. He also pointed out that an intelligent person could easily understand most of the theories and analytical techniques taught in a MBA program with some reading. Dr. Pfeffer also cited some research results done by consulting firms and investment banks that compared the performance of business school graduates to those trained in two-or three-week programs teaching new employees business basics. The studies found that in most cases non-MBAs did as well as their peers with an advanced business degree. The studies also found more education did not result in higher salaries.

     Professor Pfeffer also observed that the employers who hire brand name MBA graduates (from Harvard or Stanford), do not do so based on a particular student, but of the quality of the student body; they simply assume that if someone is from Harvard, the candidate must be good.

    Anyone would understand after reading such a disappointing report one would think twice before joining a MBA program. However, my personal perspective and goals for education helped me to overcome such negative commentary.

    I believe the goal of a graduate degree in business is to teach us how to teach ourselves, not to make us rich and famous. Most of us do not recognize that the world of business is much more dynamic than other disciplines like Medicine or Physics. The study of Physics might be more rigorous than a MBA program, but the theories in Physics are usually permanent in nature. On the other hand, business theories are always changing. In order to succeed, a student of business needs to be very flexible, adaptive, dynamic and innovative. In my opinion, if someone fails to perform well in a business situation, it is not because of our education system is inept, but because he failed to recognize the dynamic nature of the business profession.

    Therefore, to answer the question, "Why a graduate degree?" - I would like to acquire a degree that will enrich my life experience and help me to navigate the ever-changing world of business. I believe it does not matter how many business theories we know, but how effectively and efficiently we use them.

References

Pfeffer, J., & Fong C. T. (2002, September). The End of Business Schools? Less Success Than Meets the Eye. Academy of Management Learning and Education,1(1), 78-96.