Learn What an MBA Degree Is and What You Need to Know

Sangster also believes that it is generally recommended for college students who know they want to attend business school to take the GMAT or GRE as soon as possible. This is because MBA candidates are more likely to perform well on standardized tests when they are still students, rather than after years in the workforce, she claims.

 

MBA Salary and Bonuses on Average

Starting wages and signing bonuses for MBA graduates vary widely, with graduates from highly ranked B-schools in the 2022 U.S. News Best Business Schools rankings earning significantly more than their counterparts from lower-ranked schools.

The average remuneration was $172,265 among the top ten ranked B-schools in terms of average salary and bonus. In comparison, the total average remuneration at the ten rated B-schools with the lowest average salary and bonus was $52,338.

According to data from U.S. News, the income of MBA graduates varies depending on the industry. For example, those working in the consulting industry get an average base pay of roughly $152,500. In contrast, those working in the nonprofit sector earn an average base compensation of $85,100, or approximately $67,400 less.

The Price of an MBA

Annual tuition for typical full-time MBA students at the top 15 ranked MBA programs in the 2022 Best Business Schools rankings over $64,000, with most of them exceeding $70,000.

 

Tuition at public schools is often less expensive than tuition at private institutions, particularly for in-state students. For example, according to U.S. News data, the average in-state tuition for full-time MBA students at the 11 highest-ranked public B-schools was $46,068 per year. However, claimed MBA costs can be deceptive because many students get either merit or need-based financial help.

There are partial and full-ride MBA scholarships available, but many are quite competitive. In addition, some MBA scholarships are designed for specific populations within the candidate pool, such as women, ethnic minorities, active-duty military people, and military veterans. However, there are scholarships available to any applicant, regardless of family status or career.

What Skills Does an MBA Teach?

According to business school experts, MBA programs assist students in developing the abilities needed to flourish as company executives, such as the capacity to swiftly and effectively analyze vast volumes of data and the ability to generate clever solutions to business challenges. In addition, MBA programs also educate students on how to inspire and motivate others and command respect, which is essential for those who wish to undertake ambitious business tasks that involve teamwork, according to MBA teachers.

“An MBA degree is designed to educate everything needed to run your firm,” Michael Privitera, an associate professor of organizational behavior and a DBA at Barry University in Florida, stated in an email. “However, the curriculum caters to managers who want to become leaders as well as students who wish to advance up the corporate ladder.”

Phyllis Zimbler Miller, who obtained her MBA in finance from the University of Pennsylvania’s Wharton School in 1980, says she has benefited significantly from the concepts she learned in MBA classes decades ago. “And every day of my life since then, I’ve used my graduate business education, which provides an effective mindset and framework for looking at situations and acting on these situations that most undergraduate education does not provide,” Zimbler Miller, a screenwriter and book author, wrote in an email.

What Courses Are Included in an MBA Program?

Accounting, finance, marketing, organizational behavior, economics, management, and business ethics are common courses in an MBA.

The breadth of the MBA program is something James Reeves, a consultant who advises companies on how to deal with environmental, social, and governance concerns, says he valued during his MBA at the University of Chicago’s Booth School of Business. He claims that the MBA program he attended in 2013 exposed him to several elements of business and did not trap him into a certain professional path.

Reeves adds that while someone looking to become a subject matter expert may be frustrated by the amount of content covered in an MBA, the range of courses was a selling feature for him. In addition, he claims that his MBA gave him a big-picture understanding of business, which he uses while consulting with CEOs, the C-suite, and members of boards of directors.

According to Horan, a top-tier MBA program will provide students with theoretical lessons in how business works and experiential learning chances in which they will work on significant business initiatives for real-world firms.