Specialised MBA Or General, Which Is The Best Option?

The rise of specialised MBA programs may have eroded the value of a general MBA to a certain extent, but both continue to retain their charm and relevance for those seeking to expand their knowledge about business.

While votaries of specialised programs like Finance, Fintech, Retail, Infrastructure, Banking and Insurance stress the increasingly complex nature of business, supporters of traditional MBA programs claim that the general nature of the program is its best asset, offering an overview and familiarisation with all aspects of business.

Andrea Masini, associate dean at HEC Paris business school, says that MBA executives at senior levels are expected to be capable of overseeing the work of those with more specialised knowledge. However, the specialist MBAs would end up with a narrower focus and may not be able to deal with the overall functioning of the firm.

While votaries of specialised programs like Finance, Fintech, Retail, Infrastructure, Banking and Insurance stress the increasingly complex nature of business, supporters of traditional MBA programs claim that the general nature of the program is its best asset, offering an overview and familiarisation with all aspects of business.

Specialised MBAs may also be like placing people in silos that goes against the original aim of the degree to help those with specialised knowledge in a certain field to move into a more general management position, he adds.

Stefano Caselli, vice rector of international affairs at Bocconi University in Italy agrees with Masini. He points out that the concept of MBAs is to create top quality managers well versed in several areas of management.

The business schools, while chasing current market trends should also be aware of their role in the supply chain for the managers of tomorrow, and not lose sight of the requirements of executive boards, he says.

Referring to specialisations like the thoroughbred horse racing industry (offered by University of Liverpool), he says it would have its uses as long as it is not as the expense of learning how to run a balance sheet.

Meanwhile, MBA Career Services & Employer Alliance president Damian Zikakis says that demand for MBAs had been on the rise. With many of the organizations becoming leaner over the years with lesser opportunities for apprenticeship, they turn to MBA graduates who they know comes with a good business education.

Tom Robinson, president and CEO of The Association to Advance Collegiate Schools of Business (AACSB) International says the overall percentage of enrolment in all business master’s degree programs has increased 9.9% between 2009-10 and 2014-15, from 270,735 to 297,494.

However, enrolment in generalist MBAs dropped by 3.6% to 178,893 from 185,515 during the same period. Specialised MBA enrolments, by comparison, increased 39.2% to 118,601 from 85,220, he adds.

The figures are based on a sample of 489 AACSB-accredited schools, mostly in the Americas but also in Europe, the Middle East, Africa and the Asia Pacific.

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He also feels that for people in the early stages of career may have to get Masters degree specialisation in finance or accounting or data analytics due to the deeper knowledge requirements in these sectors. The MBA requires broader management and leadership skills that could be acquire at a later stage of career.

But how does a new MBA aspirant decide on which type of MBA is good for him or her?

Career goals will be an important factor. The student has to take a call on acquiring a wider knowledge base through general MBA or require in-depth knowledge in a specific industry. However, it should be kept in mind that specialisation may, in some instance, cost more money and time and restrict your options to a particular area. The best option is to analyse job market trends and seek views of recruiters and career placement counsellors.

Specialised programs are also recommended for those seeking to gain expertise in a particular area to advance their work profile in areas like retail management or finance.  For those looking for a career change wanting to explore other avenues, a general MBA would be the best bet.