This is an interesting article. It discusses the fact that many people are looking for alternative degree options, including quick MBA degrees, and it also explores the idea that a quick MBA may not be as competitive as traditional programs in the job market. I haven’t found this to be true at all (in fact, if anything it seems employers are more impressed that I was able to complete the degree in one year), but some of the information about lower pay expectations is cause for concern and worth considering.
Is Less Enough When It Comes to B-School?
by Ronald Alsop
Provided by CareerJournal.com
Bethany Carlson has found her niche and is in a hurry to get on with her career.
So the recent college graduate has decided to skip a two-year M.B.A. and fortify her skills with a one-year specialized master’s degree in marketing at the University of Rochester’s Simon Graduate School of Business.
“An M.B.A. program prepares you better for brand management,” she says, “but I want to concentrate more on market research. One day I would like to be the vice president of customer insights at a company like Johnson & Johnson or Starbucks and bridge the areas of marketing and psychology.” The one-year time frame is also appealing, she says, because she plans to get married next summer.
Even though she feels confident about her decision, Ms. Carlson is keeping her options open, knowing that Rochester will still admit her to the M.B.A. program within five years. “I like that flexibility,” she says, “just in case I change my mind.”
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Flextime
More business schools are trying to woo students like Ms. Carlson as they add specialized master’s degree programs at a fast clip. With applications to full-time M.B.A. programs just starting to recover from a severe slump, schools are hoping to attract students with new types of master’s degrees. Typically one year in length, compared with the usual two-year M.B.A., they are less expensive and require less time out of the work force.
While a one-year master’s provides an in-depth education in a particular field, M.B.A. students can major in a certain subject to gain specialized expertise, too. In fact, some recruiters say an M.B.A. graduate with broad management training and an academic concentration is the ideal hire. “The specialized degree is a nice bonus, but it’s no substitute for the skills we hope to see from our two-year M.B.A. candidates,” says Mohan Nathan, associate marketing manager at Johnson & Johnson’s LifeScan unit. “Today’s medical marketers need more than just good marketing skills; they need to operate in a changing environment of reimbursement, public policy and scientific innovation. The candidate who has a specialized focus in health care and the general-management skills of an M.B.A. is particularly attractive.”
Rochester’s Simon School, in Rochester, N.Y., has been particularly aggressive at launching new master’s programs. In addition to marketing, it has added programs in accounting and medical management, and next up is a master’s in general management targeted toward scientists and engineers. “Some people in technical fields don’t want to commit to a two-year M.B.A. but want one year of management education after their undergraduate degree to give them more clout in the marketplace,” says Mark Zupan, dean of the Simon School.
Finance, management, marketing and information technology are some of the most popular one-year master’s degrees. But they come in all varieties. Lehigh University in Bethlehem, Pa., recently created a master’s of health and biopharmaceutical economics; the International University of Monaco launched a master’s in the management of luxury goods and services in September 2006; and the ICN Business School in Nancy, France, is offering a master’s in automotive management.
M.B.A. preferred
But is there a market for all of these degrees? Recruiters in the 2006 Wall Street Journal/Harris Interactive survey showed limited interest in hiring students with a specialized degree instead of an M.B.A. From among the specializations listed, recruiters said they were most likely to hire an applicant with a master’s in finance and least likely to recruit candidates with a master’s in health care.
Based on the survey results, people should carefully weigh the trade-offs between choosing a specialized degree or going for a more extensive M.B.A. education. Some recruiters contend that there’s no substitute for an M.B.A. and that a specialized degree is likely to limit career opportunities.
“Confidence and broader perspective are the key differentiators,” says Marco Arosti, a vice president at Morgan Stanley. Mr. Arosti, who works in investment banking, says that when the pressure is on, students with a one-year master’s have only their specialty to fall back on, while M.B.A.s have much broader skills on which to rely.
Still, some recruiters find people with a specialized master’s appealing because of their depth of knowledge and their commitment to a particular job function or industry. “Students coming out of a specialized program are perceived as having more drive and passion for the field and as more goal-oriented and focused,” says Megan Frigon, vice president of human resources and professional services at Resort Technology Partners in Avon, Colorado.
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Lower pay expectations
Specialized master’s students also typically don’t expect as much compensation as an M.B.A. graduate. Devin Thorpe, managing director of Thorpe Capital in Salt Lake City, finds students with a master’s degree in finance bring the necessary investment-banking skills but don’t have the same salary expectations as M.B.A.s. “I have encouraged many undergraduate students, including some of our interns, to pursue a master’s degree in finance,” he says. “That said, there is nothing in the marketplace quite like an M.B.A. from an Ivy League school.” Mr. Thorpe holds an M.B.A. from Cornell University, one of the Ivies.
As the master’s degree market becomes more and more crowded, some schools are doing their homework before jumping in. Southern Methodist University, in Dallas, recently developed small, specialized master’s programs in management and entrepreneurship. The school also sees a potential market for a finance-oriented master’s but wants to be certain it’s the right kind of finance degree. So Albert Niemi, dean of SMU’s Cox School of Business, is visiting alumni on Wall Street and at hedge funds to test the waters. “Significant mathematical skills are going to be more important,” he says, “so I think there will be a niche market for a new degree.”
Other schools have the same idea. The University of California at Los Angeles is also designing a new master’s in quantitative finance, but doesn’t have any others on the drawing board. “You have to see where your intellectual strengths are, plus it has to be something recruiters will value,” says Judy Olian, dean of UCLA’s Anderson School of Management. “I wouldn’t do it just to keep adding students; you risk diverting faculty resources to too many programs and weakening the school.”
What’s more, recruiters warn that master’s programs might fall victim to temporary fads. “Specializations can be fashionable but lose their appeal over time,” says Matthew Upton, strategic account vice president at Avaya Inc. “Some of the basics like international business or finance are still strong, but e-commerce no longer is.”
About the Author
Mr. Alsop, a Wall Street Journal news editor, writes the monthly M.B.A. Track column and served as contributing editor of this report. E-mail your comments to Ron.Alsop@wsj.com.
