As highlighted in the GMAC study the MBA is a popular postgraduate programme for Indian nationals (GMAC, 2008). It is an award developed in the USA from the early 1900s, and the 1960s in Europe (Baruch, 1996; Mintzberg, 2005) and is intended to prepare graduates for roles in management (ibid). The aim of the MBA is to ‘bring scientific enquiry and an increased professionalism to the practice of management’ (Baruch & Peiperl, 2000, p 69), and it provides, as previously mentioned, a form of ‘social identity’ for managers (ibid).
It has been described as ‘the very core of American management education’ (Amdam, 1996), and as ‘the golden passport’ for many jobs; the ticket of entry to prestigious, high profile positions’ (Datar, Garvin & Cullen, 2010, p17). However, the MBA, in particular, has been criticised by many observers over the years for not evolving with the business world, and therefore for not meeting the expectations of employers, or management gurus, who suggest it is excessively analytical, with a focus on business functions. Some critics also argue that it has had no effect on management performance (Binks, Starkey & Mahon 2006; Hay, 2006).
This view may be a worry for graduates of postgraduate programmes if they try to secure employment post-graduation and discover that they do not have the skills necessary to become competent as a manager, or that their qualification is not as highly regarded by employers as they had expected. There has also been a view expressed that postgraduate business education, and in particular MBA graduates, were part of the problem leading to the
119 collapse of the ‘dot.com market’ in 2000, and the recent financial crisis of 2007-2008. It has also been emphasised that some of the best company directors do not actually have any form of Masters credentials (Mintzberg & Lampel, 2001). This raises questions regarding the relevance of these credentials to the business world. Other academics, however, consider these views to be a weak assessment of the evidence and of the benefits of postgraduate business degrees and believe that some observers use their assessment only to denigrate the qualification (Hay & Hodgkinson, 2008). Pfeffer and Fong (2002) argue from their study of the value of the MBA, that business schools have offered little in career rewards for graduates, suggesting that the qualification is really only offered to the business school portfolio as a ‘cash cow’, or as a ‘me-too, generic product’ (Porter, 1996, p30). Perhaps this is another indication and further evidence of commodification and credentialism that is occurring in higher education. Pfeffer and Fong (2002) further argue that business schools simply operate as ‘sorting offices’ for postgraduates, providing little evidence of learning, and thus, reduce their chances for employment. Other researchers have suggested that business and management education still needs to change, to bring experience, insight and analysis together to produce managers who really understand business. They further recommend that executives should gain more skills in ethical, moral and in the cultural aspects of business. They also indicate that since the recent financial crisis, graduates are now not always guaranteed a highly paid job simply because they have the Masters qualification.
It is suggested that other masters qualifications e.g. MA or MSc may now be more suitable in the business world than the MBA as they are widely recognised and valued by employers (Bradshaw, 2009; Datar, Garvin & Cullen, 2010; Mintzberg, 2005; Starkey & Tempest, 2005), this could be why the more recent survey from GMAC (2011) as previously mentioned, indicates a rise in these programmes. However, there is considerable evidence to suggest that MBAs are a benefit to the would-be manager as highlighted in the marketing material of many business and management schools for example ‘an MBA at an AACSB Accredited Management School
120 can help you develop the higher level leadership skills needed to make a difference to your career, company and community’ (University of Liverpool Management School, 2012). It is also argued that MBAs train people for senior management positions, irrespective of the industry they work in (Hotcourses, 2012).
A recent report, One Step Beyond (2010): Making the Most of Postgraduate Education, suggests the following:
‘Over the last twelve years, the number of people undertaking postgraduate education in the UK has grown 36% – Faster than the growth in the undergraduate sector over the same period. Now, almost a quarter of students in UK Higher Education Institutions (HEIs) are studying at postgraduate level and half of international students studying in the UK are taking a postgraduate qualification.’ (Smith et al, 2010, p4)
The UK Government and UK HEIs recognise that an excellent higher education system supports the development of world-class skills, which it is suggested, will also improve ‘economic prosperity, productivity and improve social justice’ (Leitch, 2006, p1). It is also suggested by Leitch’s review of world class skills, that postgraduates are important for ‘driving innovation, entrepreneurship, management leadership and research and development’ (CIHE, 2010, p3).
However, more detailed findings from the CIHE UK, Talent Fishing Report (2010) indicate that 80% of UK employers consider that Masters graduates have unrealistic expectations and that less than one in ten employers ‘agree strongly that the qualification is a guarantor of a high quality candidate’ (CIHE, 2010, p10). The report further indicates that some postgraduate qualifications confuse some employers, which they suggest is a situation which should be addressed by all HEIs (CIHE, 2010). The CIHE report further indicates that employers are divided into various types. There are employers who treat postgraduates in the same way as first degree graduates and those who specifically seek out, and are closely linked to universities for specific talent.
121 There are also employers who do not value higher level postgraduate qualifications, and do not require them for their employees. This study aims to seek the perceptions from respondents about Indian employers’ views. Wilton, Woodman & Essex (2007) argue that their studies indicate that there is a national UK picture of an under-qualified management workforce compared with other professional occupations and they argue that there are widely recognised benefits of employability, for those individuals who have additional management qualifications. They also suggest that some of the ‘intrinsic rewards’ (ibid) which are outlined further in this section, influence people to study postgraduate business qualifications, besides the direct benefits of career prospects, or financial rewards, and these may be assessed by reward theory (ibid).
This theory which is applied in the Wilton, Woodman & Essex (2007, p13) study, considers the motivations that drive individuals to study business programmes. They suggest these may include:
‘Achievement motivation – for which the reward is success Anxiety – for which the reward is the avoidance of failure
Approval motivation – for which the reward is the approval of others Curiosity – for which the reward is to explore the environment and be exposed to new stimuli
Acquisitiveness – for which the reward is something tangible such as money or additional benefits’
Van, Dick & Haslam (2012, p175a) also argue that individuals gain a ‘sense of self from their membership of social groups’ e.g. post graduate alumni of HEIs, or specific academic programmes. This group classification thus enables individuals to classify themselves and locate themselves within the social environment (Turner, 1985). Social identity theory advocates that individuals define their social identity or social class according to the typical characteristics ascribed to the members of the group, which may be regarded by some as stereotypes (Ashforth & Mael, 1989).
122 Ashforth & Mael (1989, p24) further argue that social identification statements e.g. ‘I am a postgraduate MBA’, or ‘I am a UK Masters graduate’, may be regarded as ‘identification of self’, and thus acknowledgement of being a member of a group relative to others; and as an example of organizational identification, which they suggest is a ‘specific form of social identification’ (ibid, p22), which they further suggest is:
(a) ‘a perception of oneness with a group of persons’
(b) ‘stems from the categorization of individuals, the distinctiveness and prestige of the group, the salience of out groups’.
(c) ‘leads to activities that are congruent with the identity, support for institutions that embody the identity, stereotypical perceptions of self and others, and outcomes that traditionally are associated with group formation, and it reinforces the antecedents of identification’.
(Ashforth & Mael, 1989, p20)
They also argue that social identity theory proposes that individuals appear to associate with organizations e.g. HEIs, that reflect their values, and that they will support those institutions with which they identify most (Ashforth & Mael, 1989). Whilst relevant to this study, this argument was reviewed but not fully explored in this study.
Motivation to study postgraduate business education, may lead to qualifications, e.g. MBA, MAIB, MAGM, and may therefore provide its holder with social identity from the institution and/or the programme It may also provide intellectual credibility, and access to alumni networks for added future benefits and may result in greater cultural and possibly further social capital.
Individuals are motivated to study management education e.g. the MBA, as it is ‘expected to lead to enhanced managerial success, though this is not universally accepted’ (Baruch & Peiperl, 2000, p69). It may also provide the holder with an improvement in performance and improved competencies which may lead to further promotion, a better career and increased salary (Baruch & Peiperl, 2000; Wilton, Woodman, & Essex, 2007).
123 Baruch and Peiperl (2000, p69) argue further, that many ‘students are typically concerned with acquiring managerial competencies quickly and efficiently, and, thus, “leapfrogging peers' and improving their career prospects’. They also suggest that MBAs had higher expectations than non- MBAs (Baruch & Peiperl, 2000). They further suggest that whilst the qualification is regarded as a passport to higher managerial positions, it may, in times of recession when employees have to seek jobs of a non- management role, be regarded by employers as being over qualified, and may result in lack of a job and disappointment for the graduate.
Other motives for higher education, as previously highlighted by other authors, are, it is suggested by Ascher (1984) and Carnell (1992) for salary improvements, for the development of knowledge and skills, e.g. human capital.