More and more management studies aspirants seem to flocking to Masters in Management (MiM) Programs, especially in the US and Europe, instead of the traditional MBA programs.
While about 58% of the European MiM programs registered a growth in applications last year, only 43% of the full-time, two-year MBA courses globally saw an increase, down from 61% in 2012.
What makes the Master’s programs attractive? The shorter time frame of 1-year, compared to the full-time MBA that comes in various formats from 12 months to 15, 16 and 18 months.
Unlike the MBA programs that require prior work experience of at least 3 years, MiMs are more open to taking in fresh graduates.
Masters programs may also be concentrating more on basic business education and less time on case studies and research aspects featured in most of the well-known MBA programs.
Almost one-third of GMAT test-takers were found to be applying for MiM rather than MBA, a major shift in the pattern within a decade.
According to various surveys, the gap between MiM and MBA seems to be narrowing. Even recruiters are increasingly considering MiM as equal to an MBA. Many of those who opt for a Master’s also keep the option of an MBA at a later stage of their career, if needed. They also hope to get the employers to chip in with full funding or partial funding of their MBA.
A CarringtonCrisp survey of 1000 business school aspirants found that 47% of the participants felt that MiM was as valuable as MBA for the employers.
Almost one-third of GMAT test-takers were found to be applying for MiM rather than MBA, a major shift in the pattern within a decade.
Looking at the expenses, while a MiM at the London Business School (LBS) costs £29,900 as tuition fees, the MBA fee at LBS is pegged at £75,100. Those who go in for a Masters also enjoy the advantage of getting the LBS brand on their resume right at the beginning of their career.
At HEC Paris, tuition and fees for MiM are €32,400 for EU students or €37,000 for non-EU students, compared to €62,000 for the MBA program.
Meanwhile, University of Iowa’s Tippie College of Business has become the latest to phase out its full-time MBA program, Tippie joins business schools such as Wake Forest University and Virginia Tech, both of whom have recently ended their full-time MBA programs. Nationwide, more than half of the schools offering full-time MBA have reported a decline in enrolment decline that goes up to 60% for schools in the Midwest.
Some B-Schools in the US, including the Kellogg School of Management at Northwestern University and Mendoza College of Business at the University of Notre Dame, have come up with similar content for both MBA and MiM. They provide an option for students who need to finish their studies earlier than others who may prefer to follow the 2-year MBA format.
Yet another reason for the increasing popularity for MiM among employers could be that since the graduates are beginners in their career, they would be available for lesser salaries than MBA graduates. Thus, MiM graduates would be ideal for smaller companies that do not have a stratified MBA track.
The average age for MiM is also around 23 at LBS and 22 at HEC Paris. If we take up diversity and competition, 42 nationalities are represented in the LBS 2017/ 2018 class, with an average GMAT score of 686. The class at HEC Paris has 45 nationalities with an average GMAT score of 710.
While it is too early to suggest that MiM programs may overshadow MBA in the near future, globalisation and ever changing market dynamics may make it possible for both MiMs and MBA to coexist, catering to different types of needs.