How worthwhile is an MBA degree from a non-top tier school?

November 8, 2006 7:16 AM

How much is an MBA from a lower-tier school worth? Especially when compared to a Masters in Accounting from a higher-end school?

I'm currently trying to sort out my grad school plans. I'm a bit of a non-trad student, and will be finishing up dual degrees in Accounting and Economics this spring from a small PA state school. I love both Accounting and Economics, but realized that I don't have the math background nor the quantitative scores to get the required perfect score on the GRE most Econ graduate programs require. I have a decent GPA (3.66 overall, 4.00 in Accounting).

A few weeks back, I went to a small local grad school fair, and was offered cheap access to MBA programs at schools no one ever heard of. This got me thinking about applying to a few mid-level MBA programs if I can find time to work on the GMAT.I love managing people and problem solving, so an MBA would probally help my job-search possibilities a lot. I don't exactly have the best work experience that MBA programs appear to look for, so I don't know if I'll get hurt on that.

On the other hand, I was looking at MS Accounting programs, and it looked like I could easily get into any school I wanted with my grades. Since time is at a premium (I work 30-40 hours a week in addition to going to school fulltime), I am appealing to the hivemind for any good resources or stories that will help me figure out what to do.

posted by Darke to education (11 comments total)

It used to be sort of standard wisdom that, in purely economic terms, an MBA from a school not in the top ten was not worth the loss of income during school and the expense of school. I am not sure I agree, or if that is still a widely held view today. For you though I think the accounting degree will open more doors than the MBA.
posted by caddis at 7:29 AM on November 8, 2006

MBAs are becoming more and more common without any increase in demand for MBA holders, while accounting is seeing a huge surge in demand. At my (Canadian) university, one of the new faculty only has a Master's because the school is unable to retain enough PhD students - industry is just sucking them up. It's like computer science was back in the bubble.

If you like accounting, I'd suggest going for that.
posted by GuyZero at 7:35 AM on November 8, 2006

I've seen a lot of job postings where the employer wants a CPA or an MBA. Depending on where you are looking for work and what you want to do, a CPA may open a lot of doors, and getting the certification is a lot cheaper than an MBA.
posted by saffry at 7:57 AM on November 8, 2006

What do you want to do after grad school? And would you consider delaying graduate education until you built up a more traditional MBA work history?

An MBA is more flexible than an MA in Accounting. But if your career choice is to work in finance, then you'd be better off going for Accounting and the better name. If you want line management, marketing, HR, etc., then you're probably going to want the broader focus of an MBA. If you feel like you have the time for an intermediate step, you may want to try to get a traditional pre-MBA job like consulting or i-banking and then go for your MBA. That could help get you into a better school.

The best degree is the one that gets you the job you want. So it comes down to what job you want. Good luck
posted by limagringo at 8:08 AM on November 8, 2006

Do you want to do accounting? An MSA will probably help you prepare better for a CPA licensure than a regular MBA will. However, like limagringo says (on preview), the MBA will be a lot more flexible for you.

As for what you'll make, it's not just about the school name or tier, it's about the people you meet there. In theory, you'll meet "better" connections at a better school, which in turn be "worth more" to you in the long run. The allure of Harvard isn't just the education itself, but the people you'll meet and the opportunities you'll have.

If you plan to stay in the area, the big name or a high tier might not matter, since everyone locally may already know of your school. If you're going to leave the area, it might make a difference.

I've seen rankings that include data on time to return investment, so you can compare the cost of the school to the amount of working years it takes to recoup your investment. Even if your schools aren't on there, it gives a good picture of how students in higher tier schools compare to those in lower tiers.

As for what to do, I would ask the schools you're interested in if they can put you in touch with some students (and/or recent alums) like yourself (part time, etc) so you can ask them about their experiences. Ask to also speak to the career services office about their services (even if you have a job now, it will come in handy at some point). Do your research on the statistics for all the various schools, including the salaries, hiring companies of graduating students, etc. Are the schools you're considering accredited? If they can't help you with any of that or the answers don't look good, run!

Good luck!

Disclosure: Part-time MBA student at a relatively well-known school (recognized by BusinessWeek, etc).
posted by ml98tu at 8:23 AM on November 8, 2006

In general, the better the school the better your chances of getting a decent job. After that how you do and your resume is what will county for the next job.
posted by Postroad at 8:45 AM on November 8, 2006

Depends on what you want to do...if you're very ambitious, I tend to agree with the saying caddis mentions about only a top 10 school being worthwhile. If you are indeed very ambitious, I'd get the accounting degree, work at a Big 4 accounting firm for a few years, score well on the GMAT (710+) and then apply to the top 10 business schools. You'll maximize your earning potential and gain flexibility in industry and geography.

If you just want the fastest path to a decent job in the local area, get the MBA now.

On a side note, I'm surprised by this growing trend of undergrads heading directly to MBA programs without any post-undergrad work experience. It seems like the group-work emphasis of an MBA program would render an unexperienced student worthless. If I were an MBA student, I'd want to benefit from the wealth of my classmates' experience and not get stuck in a group with a fresh undergrad. I realize that the trend of entering an MBA program directly from undergrad is actually a return to previous practices, but I still don't think it makes sense.
posted by mullacc at 9:52 AM on November 8, 2006 [1 favorite]

I am a business professor at a decent sized university. My advice is that MBA programs usually have a very static set of employers that hire out of those programs. You can find out who these are by asking the career services department in the business school. Look at what companies hire out of the program you are interested in, and how many people they hire each year. If that list seems appealing, then it is probably worth it.

The very best business schools tend to have a slightly more national set of companies. On average, however, business schools are quite regional and most students end up getting jobs in companies (or regional offices of companies) located close to the school. So make sure you want to live in the general area where the school is located.

I know this doesn't directly answer your question, but I think generally the advice above about the difference between an MBA and a Master's in Accounting is fairly sound. The only thing I will add to that, is that a a number of my friends/colleagues with Master's in Accounting complain that they work just as hard, and are just as smart as people with MBAs, but they make a lot less money.

Oh, and I will also say that I think an MBA without some significant work experience is not a great idea. The internship and job you get will be correlated with your prior work experience. It is worth it to hold off for a year or two to get some more relevant experience before starting.
posted by bove at 10:27 AM on November 8, 2006

I don't exactly have the best work experience that MBA programs appear to look for, so I don't know if I'll get hurt on that.

I can't tell if you mean that you don't have much work experience or just that your work experience isn't "business-y"? If it's the second one, you'd be surprised at the non-traditional students that ten 10 b-school programs admit. We had a few in my class - like a hotel concierge, film director, coffee shop owner, etc. that all seem very successful a few years after we graduated. I think it more depends on how you can relate your experiences to running a business. I think the big thing is that you should have an idea of what you want to get out of business school or what you want to do afterwards. It's hard to figure that out while you're there (seriously, I did an internship in one thing and took a job in something completely different, and it was difficult).
posted by echo0720 at 1:06 PM on November 8, 2006

I sewar I previewed -- but "that ten b-school programs" should obviously say "that top tne b-school programs"
posted by echo0720 at 1:09 PM on November 8, 2006

uh, ten. sorry.
posted by echo0720 at 1:11 PM on November 8, 2006