Is MBA from an average school really bad?

Question

Hi Guys,
I have been reading here how every MBA aspirant wants to go to either the east or the west coast. Obviously, those are the best schools but not everyone can move to the coasts. Even if they have 700+ in GMAT and a stellar application package. There are family reasons too that count.

I am trying to get some perspective here.
My question is that a Full Time MBA from not the top 15 but from average schools like Colorado State University, Oklahoma State University, Southern Methodist University in Dallas, etc etc, will be rejected by the job market??? Will they earn only 70K a year? And always get haunted by the average school name they got their MBA from?

If so, then I might as well stop preparing for GMAT and do something else because I cannot move to the coasts because of my family reasons.

So I hope someone here will help me understand if I am totally wasting my time by aspiring for MBA from an average school.
Thanks, Amber

pittgreek · Answer

yes and No, I have both answers,

It depends upon why you want to do MBA ? career shift, pay hike or bored with present job..

shadow · Answer

like pittgreek said, it can go both ways. are you expecting to land an i-banking or management consulting time job right out of business school? if so, you would be hard pressed to land one by going to an "average" school (by average i mean generally not in the top 30 schools)

does that mean you're doomed career-wise? i don't think so - sure you'll have to put in time and effort in your job, but you would have to do that no matter what school you go to.

also, there are a lot of schools in the south/ midwest that have strong programs. are you limited by geographical location only? or is financial aid also an issue? some decent schools in the areas you mentioned are: U of Texas / Mccombs (austin), Rice (houston), Washington university / Olin (st. louis), emory (atlanta).

donold · Answer

Hi Guys,

Some time it does matter that from where you have done your MBA becaues if any intitutue having good reputation spending more on faculty and infracture that means MBA from their institute does matter in job market.

But the other side of coin this is also true that  MBA  from average not always sent you rough side of life. When you complete studies it means you have learn book which give you knoweldge rest of things that how you utilize that knowlege and apply in you professional life and earn you bread and butter to survive.

Thanks,
amit

nink · Answer

In general, MBA degree is going to help you acquire new skills, and give a boost to your career. Most schools offer comparable MBA curriculum and for most people, it really doesn't matter where you get that degree.

However, exceptions exist depending on your future career plans.

If you just want a MBA degree to advance your career in your current industry or field, then what you would call an "average bschool" should not really matter (as long as that avg school is not named Univ of Phoenix or DeVry, Johnson & Wales, etc). Many people choose to attend mid tier MBA programs, because many of these regional programs are established in their respective regions. If you already have a FT job, and you are pursuing MBA degree for career advancement purposes, it really shouldn't matter whether the school you are targeting is nationally ranked or not. (even though people will argue otherwise because they are looking for best bang for the money invested in these degrees)

However, if you are a career switcher, and you expect more than what I've mentioned above from your MBA degree (in terms of ROI), then a degree from a ranked program is going to matter because those schools work very hard to establish themselves with recruiters, alumni, and the public in general (in terms of PR and recognition etc).

After all, when you are interviewing for a job, people are going to judge you based on what is on your resume and it is very easy for people to judge your talent and qualification based on your educational background. This happens often, and one of the many reasons why people are trying hard to get into one of these top ranked programs, is for this "benefit of doubt" that if a person graduated from X MBA program, then he or she is at least well rounded and etc.

Now that being said. You mentioned that you are looking to get a FT MBA degree from schools like Colorado State University, Oklahoma State University, Southern Methodist University in Dallas, etc for personal reasons. You also mentioned that you are looking at these programs because you can't move to the either coast. It's not that graduates from these programs can't find a job per say, but in terms of probability, the graduates of these programs might face bigger odds when looking for a job, and the job he or she ends up with, might not necessarily be the kind of fancy job that he/she expected to land with a MBA degree (it's a huge investment after all).

There are very good MBA programs in the midwest and central region of US. (Washington Univ of St. Louis, UT-Austin, Vanderbilt, etc comes to mind). Rather than giving up on your bschool aspirations, I suggest that you look for all the possibilities (in terms of where you can attend) before giving up.

Jerz · Answer

Beyond wanting to reject your premise that all the top MBA schools are on the coasts, I wanted to add something to what nink said. One of the benefits of a top MBA program is its alumni network. Generally speaking, the higher ranked schools will have an alumni network that is better represented at the elite banks, consulting firms and corporates that hire MBAs. Now that doesn't necessarily mean that I'm guaranteed a job at one of those firms, but it does mean that I'm much more likely to at least get my foot in the door and be able to talk to someone.

Similar argument with professors. The higher ranked schools are more likely to have professors who do consulting for or have other relationships with the top tier firms, which can be another point of entry for students in those schools.

So while it may sound elitist, I do think that while the quality of education is likely very similar regardless of what program you attend, the overall value of your MBA in terms of your career is higher at a top 20 program.

ambera · Answer

Thanks to everyone for answering. Here is my situation: I have been out of job market for 2.5 years. My previous employer moved out of town and I could not relocate. Since then, I have been involvled in family business. So to re-enter the job market I think I better brush up on my qualifications. I have a Bachelors in Civil Engineering. And worked for 5 years for a reputed oilfield company as oilfield field engineer, but all that is now past. I will be "the luckiest" if I can get into UT-AUSTIN. But they need at least a 680 GMAT and despite always being an honors student, I'd confess that I am struggling hard with the GMAT. I think I really need a good score to support my application since I have not been employed lately. Despite that I keep scoring horrible CAT after CAT, I am constantly telling myself to not give up and keep trying. So lets see if I can step in UT-Austin one day. :-)

)) Have a nice weekend. Amber

caliguy7 · Answer

ambera, in response to your question stated above, an MBA, regardless of what school you get it from, is never a BAD choice. People seem to be stuck on the concept that you must pay upwards of $60,000 a year for a GOOD degree.

Only 10% of the population even GETS post-bachelor degrees or certificates (eg: CPA) so I would put less emphasis on WHERE you get the degree, but rather on GETTING the degree.

Your credentials can only take you so far. In about 5 years most companies forget where you went to get an MBA and give promotions based on your own merits.

Good luck with the search.

ambera · Answer

Only 10% of the population even GETS post-bachelor degrees or certificates (eg: CPA) so I would put less emphasis on WHERE you get the degree, but rather on GETTING the degree.

Your credentials can only take you so far. In about 5 years most companies forget where you went to get an MBA and give promotions based on your own merits.

Good luck with the search.

Hi caliguy7,

I agree. Right now I better focus on taking the GMAT than worrying about where to get an MBA from. Its funny/ironical that I have visited websites of seven schools that interest me the most. And as a practice I have written the application essays for all 7 schools. But taking the exam is proving to be the toughest task. LOL. 
Thanks for the reply!
Amber

JinJJa · Answer

Amber, it seems you already made up your mind. The average B-School is more than good enough for you since only 10% get any post graduate degrees at all. But then again, the 90 percentile in salary, according to IRS, is only about $100K/yr (give or take $5K).

I think B-Schools are lot like professional baseball leagues. There are rookie, A, AA, AAA, and Major Leagues. Mind you, they are all great baseball players (certainly in the top 10%), but most of the money, prestige, and notoriety goes to the Major League players. If you graduate from a rookie or A league B-School, your chances of playing in the Major League of the business world will be substantially diminished.

I used to know a colleague who used to tout his U of Phoenix MBA like it is from Harvard. We tried our hardest from bursting out in laughter. He just didn't get it that UoP MBA was a "rookie" league MBA and hardly anyone else saw it as a notable accomplishment as he did.

If you want to play in the Major Leagues, being in the top 10% is not good enough. You need to shoot for the top 1% or better.

caliguy7 · Answer

JinJJa, 
What do you mean by "But then again, the 90 percentile in salary, according to IRS, is only about $100K/yr (give or take $5K)." Could you clarify?

Secondly, I like your sports analogy and I believe it brings up another issue that must be addressed:

It seems as though you are implying the sole purpose of individuals playing in the minor leagues is to one day play in the major leagues.
What if rookie players play in the minor leagues because they enjoy the sport?

In the same way, what is wrong with not being the CEO of a fortune 500 company making $10 million a year? What about being the Operations manager at a local business making a healthy salary of $150,000?
The latter gives the freedom to raise a family, enjoy life, and still have an extremely comfortable lifestyle (just without the private jet and butler to cook you breakfast...)

So if you are motivated to become a CEO or board member at a multi-national company, you are probably better off getting a degree at a "name-brand" school where you are paying for the image.

In contrast, with determination and a strong work ethic you can climb the ranks at a company to receive a very handsome salary without shelling out hundreds of thousands of dollars just so you can hang up a USC diploma on your wall.

JinJJa · Answer

Yes, it means if you make around $100K/yr, your salary is above approximately 90% of the population.

I didn't say any of the scenarios you mentioned above are wrong.

What is your point? A person doesn't need an MBA to be a CEO? That is a given.

MBA and talent are not mutually exclusive. In fact, I would argue a top 20 MBA and talent are highly correlated.

A lot of people site the fact that majority of CEOs do not have an MBA. I think approximately 1/3 of CEOs have an MBA. But that is a FAR higher percentage than the general population. In other words, MBA will increase you chances to be a CEO by a LOT.

MissShona · Answer

Not to defend the MBA program at U of P or anything (I am definitely not a fan; too high-priced, and the educational quality is sketchy); but I have to hand it to this guy. You said 'colleague' so apparently you know him in the professional/working capacity, right? Well my goodness, the man has a job! I know of a liberal arts grad from Cornell who is unemployed!

One of my old supervisors used to also dote on the fact that she had an MBA. When I was first considering B-School, she strongly encouraged me...saying that her MBA helped her land a job with a major hospital and her career took off from there. In a funny twist of fate, I got a job at the very same university where she earned her MBA. Even as an employee, I do not get a tuition waiver on graduate-level courses; but even if I did, I would not get an MBA from the university where I work! Although I work in a different college/department, I have had graduate assistants from the MBA program there, and they do not have the skill set that I believe all MBAs should have (I've had 2 who couldn't use MS Excel beyond the basic level). Surprise, surprise, the 'MBA' program is really an non-AACSB accredited 'MS in Business' program. However it apparently 'worked' for my old boss. So.... Joke degree or not, I think that if you are successful, you are successful. I would have a whole lot less respect for someone who lied or tried to hide their educational background on the premise of what others would think; then someone who flaunted their U of P or DeVry MBA. Hey, what do any of us know in that it is not like we have the opportunity to truly sample different MBA programs first hand. Getting a career/job is the end game. And if they can make their degree work for them, hey, more power to them! :-D

Diogenes · Answer

Nobody has mentioned two things.

1. Getting a weaker MBA precludes you from getting a better one later. That's probably more geared towards people who are limited currently by work experience who might be on the cusp of really improving that aspect of their application. Someone with 3 years of work as a non-manager with limited leadership experience might be in a different ballpark in terms of MBA admissions 2 years later if those two years are spent as a manager with serious accomplishments and better rec's.

2. If an MBA doesn't help you right away and your career path is fairly similar to what it would have been without the MBA, you might have been better off just slaving away until your employer paid for your MBA or EMBA later on. The Feds, for example, are very nice about giving good education benefits, so if you work for them you might not have any way to use those benefits to your advantage once you've already got an MBA(hard to convince someone to pay for your PhD or whatever else you'd like).

Hjort · Answer

There are some extremely strong programs in the Midwest including Chicago, Northwestern, and Michigan so I respectfully disagree with the initial observation that one must leave for one of the salt water coasts in order to reach the best programs.

As others have effectively stressed, it is crucial to consider one's goals for attending an MBA program when evaluating whether a given program is more appropriate than another. If your goal is to obtain exposure to the basics of management and develop a strong network in a specific metro area, a well-respected local school may very well be a better choice than a distant higher cluster school.

TwoThrones · Answer

I think JinJJa is just a person who strives for the best, not all other strive in the same way. I have respect for both.

Is MBA from an average school really bad?

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