http://management.fortune.cnn.com/2013/02/08/glenn-hubbard-columbia/?iid=HP_LN
In this article, Hubbard discusses the reality of getting an MBA today. Last year Columbia's MBA program decreased in applications by 19%. Hubbard explains this because of the high opportunity cost of getting an MBA. He also says that it is only worth going to business school if you are going to the top four or five business schools. The problem with that is the high tuition of those schools. While Harvard gives a comparatively large amount of financial aid, Columbia and other schools do not. Hubbard also said that Columbia is trying to make more teaching more informal in order to be compatible with learning today. Additionally, they want to make tools classes (stats, microeconomics, etc.) online in order to give every student the same preparation and to make the time with the professor more worthwhile. I thought it was interesting that he would only recommend the top 4-5 schools even though those are more expensive. This really makes students decide how important the name of a school is in comparison to the amount of money they are willing to spend on tuition.
In this article, Hubbard discusses the reality of getting an MBA today. Last year Columbia's MBA program decreased in applications by 19%. Hubbard explains this because of the high opportunity cost of getting an MBA. He also says that it is only worth going to business school if you are going to the top four or five business schools. The problem with that is the high tuition of those schools. While Harvard gives a comparatively large amount of financial aid, Columbia and other schools do not. Hubbard also said that Columbia is trying to make more teaching more informal in order to be compatible with learning today. Additionally, they want to make tools classes (stats, microeconomics, etc.) online in order to give every student the same preparation and to make the time with the professor more worthwhile. I thought it was interesting that he would only recommend the top 4-5 schools even though those are more expensive. This really makes students decide how important the name of a school is in comparison to the amount of money they are willing to spend on tuition.
4 comments:
This is a really fascinating story, especially considering many in this class might be looking into MBA's. Do you think this is simply a current trend given the already fixed education of most of the workforce, or do you think it is a more permanent trend given the expectation of businesses?
Unfortunately, in my opinion, when you're justing starting out in business you tend to look at big name companies, and these too look out for applicants from the 'best' schools: a kind of mixed screening and signalling process. I think getting an MBA is so expensive because most people conclude that the eventual payoff will be worth the investment, but given the increasing importance and popularity of venture capitalism, it would be interesting to see how MBA application rates change.
I know this is a problem in more than just MBA programs. Law schools too have been heavily criticized for costing an arm and a leg only to leave many graduates with jobs that barely pay back the cost of tuition.
I do however believe that saying only the top 4-5 schools get good jobs is pushing it. If you graduate near or at the top of your class (not that that's necessarily easy) at a mid range school or higher you should be more than fine.
This interview revolves mostly around Columbia Business School and there is no shock that mostly they want to cater to affording candidates for their MBA program. Candidates who seek financial aid and are on merit have other options which are good enough.
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