Investment Advice: Go for the MBA

Business school deans have been rushing to the defense of their graduate degree programs ever since Jeffrey Pfeffer and Christina Fong published their 2002 article questioning the value of an MBA. Not only did those authors debate the worth of the MBA in general, they suggested that the degree was only valuable if it was earned from a top-ranked school. A recent U.S.-based study shows this is clearly not the case. Researchers employed by the Graduate Management Admission Council (GMAC) surveyed thousands of graduates over the course of five years, collecting data that compared the costs and rewards of accredited programs across the U.S. Analysis shows that an MBA yields an excellent return on investment (ROI) for nearly everyone, regardless of the type of program, the race of the student—or even the ranking of the school. Pfeffer himself believes management education has undergone significant changes since his original article was published. (See his viewpoint regarding business schools’ possible overemphasis on MBA salaries in “What’s Right—and Still Wrong—with Business Schools” on page 42.) One thing that hasn’t changed is the enduring value of an MBA

Managerial Discretion in the Use Of Self-Ratings in an Appraisal System: The Antecedents And Consequences

Self-evaluations of performance have elicited the interests of researchers over the last four decades. Supporters attest to the importance of employee involvement in the appraisal process while detractors raise issues concerning leniency, validity and purpose. This study examines the circumstances under which superiors have discretion to ask subordinates to self-evaluate their performance in an ongoing appraisal system. Three primary issues are investigated: the conditions under which superiors requested subordinates to self-evaluate, the relationship between opportunity to self-evaluate and the type of post-appraisal interview that was conducted, and the impact of self-ratings on performance appraisal outcomes. Three hundred twenty-six subordinates responded to questions about the performance appraisal process. Results showed leader-subordinate relationships were strong predictors of opportunity to self-rate. Self-ratings were strongly related to type of interview conducted and had an impact on perceived fairness of ratings. While criticism of self-ratings exists, our findings indicate that voluntary self-ratings, focusing on performance development, have a positive impact on the appraisal process

Gender Differences in Pay of Young Management Professionals in the United States: A Comprehensive View

We conduct a comprehensive examination of the gender differences in pay focusing on multiple perspectives emanating from economics, social psychology, and gender studies. Data are drawn from surveys of MBA students conducted by the Graduate Management Admissions Council. Although women in both samples earn significantly less on average than men, when the effects of the study’s variables are considered via multiple regression analysis, no significant difference in annual salary is observed. Our results show the importance of simultaneously considering the impact of human capital, job and firm characteristics, demographics, and cognitive skills. Structural differences are noted in the models estimated separately for men and women. However, the results from decomposing salary differentials are quite consistent with estimates from the single-equation models

Factors Associated with Preferences Regarding Selected Forms of Variable Pay: A Replication and Extension

This study investigates the relationships among being paid via different variable pay systems, perceptions regarding selected work environment characteristics, and preferences regarding selected variable pay plans. The data highlight the importance of studying pay system preferences among those with significant work experience because measurement of such variables as experience with variable pay systems and perceptions of work environment characteristics is otherwise not possible. The findings suggest a link between perceptions of work autonomy, efficient management of firm resources and job support, pay satisfaction, experience with variable pay systems and preferences regarding selected variable pay systems

The Impact of Past Performance on Expectations of Future Success: An Investigation of Australian Managers

Competition among firms for market share and differential advantage is at an all-time high [3]. Moreover, investment in research and development (R&D) is seen as a major strategy in attaining and maintaining any competitive edge [4]. Little is known, however, about how experiencing poor performance in R&D endeavors affects managers\u27 perceptions of future opportunities for success in his or her company. Do managers believe that success breeds success, while poor performance is an indication of continued problems in the future? Or do managers believe that poor past performance is unrelated to future performance? Additionally, are some individuals prone to experience feelings of loss of control, while other individuals believe that they can influence future outcomes? When considering the importance of R&D endeavors to competitive strategy, these questions deserve attention and constitute the focus for this paper

Gender Differences in Employer Supported Training and Education

This article reports on a study that examined the difference in training and development opportunities for men and women in a group of MBA students employed in a variety of occupations, industries, and organisations in the USA. Specifically the study sought to identify any gender difference in employer support for education and training, and the factors related to any such gender differences. Initially, findings indicated that women received less corporate support for training and development. However, when factors such as organisation size, number of working hours each week, and work experience, were considered, no gender differences in employer support for training and education were apparent