Does MBA really bring value?

"In today's prestigious business schools, students have to demonstrate competence to get in, but not to get out." - J. S. Armstrong

This is the longest I must've pondered about a posting. I started this one on 5th Aug when I had recently read a truly eye-opening article by Professor Pfeffer (from our very own Stanford GSB) on the value of business education. The reason I say eye-opening is because personally as a fresh graduate from Stanford, I had this in some corner of my brain that someday I might come back to school for a MBA degree. This being after taking couple of classes at the Stanford Business School (open to Stanford engineering grads), understanding certain aspects about B-school i.e. the hogwash element and also most importantly deciphering the value ascribed to a business degree by the industry in terms of job responsibilities, salary, perks, repute what not.

As is rampant in the consumerist economy, the stamp of a MBA degree from a reputed school goes a long way in one's career, i.e. on one's resume for career progression or as proof of a person's academic/scholastic abilities (read Bush's MBA degree :)). Hence, in terms of valuation and cost benefit analysis, an MBA degree is a sound investment, the payback period is very short and the returns easily outrun the huge dollars worth of tuition spent. However, whether the education really imparts any intrinsic value in terms of knowledge gain and a person's ability to successfully manage a business is questionable!!

Many experienced and knowledgeable academicians have come forward and themselves pointed out the flaws in the business/management education system presently, mocking to say that its much more a billion dollar industry in itself rather than a scholarly department in a university.

Recent numbers published suggest there is a downward trend in number of students applying to B-schools, number of GMAT test takers as well as (much more close to home-base) the number of Indians and Chinese trying to get MBA degrees..Whether this is an after effect of the bouncing back economy or the understanding that MBAs are overrated: I don't know....I am very interested in this issue and will actively update this posting with any new insights that I read of.

Please be sure to voice your opinion here or check back later for new info added in this regard. Enjoy the interesting articles linked below:

The End of Business Schools?Less Success Than Meets the Eye By Jeffrey Pfeffer and Christina T. Fong

MBA program numbers down