AACSB - Does it REALLY matter???

A lot of people, including myself are inquiring about online MBAs and someone always recommends a school noting that it has AACSB accreditation. But in the business world, once you've completed your MBA degree, does the AACSB accreditation really matter? Will employers really look at whether the school has this accreditation? What are the pros and cons vs. a non-AACSB school and a AACSB school?

Crystal

 

IMHO, yes and no. Yes, in that there is a strong corelation between AACSB accreditation and ranking of business schools. Most of the best schools seem to be accredited by AACSB.

No, in that it (AACSB accreditation) itself doesn't seem to come up much in the employment process. (My opinion; I'm not aware of any studies measuring this.)

You're much better of trying to gauge the value of a school's reputation in the business world than worrying about AACSB accreditation. An MBA from a little-known AACSB-accredited school is still an MBA from a little-known school. Take that degree to a region where your school is not known and there will be little difference between it and one from a non-AACSB-accredited school.

(It is relevant to note that my MBA comes from a non-AACSB-accredited school. Also, I've never, ever, come across a situation in the employment sector where that mattered. I've heard that AACSB-accredited B-schools want their faculty members to have degrees from AACSB-accredited schools, but I'm not sure even that is written in stone....)

 

This is an excellent question. I've always advocated study at an AACSB (or at least an ACBSP) school. I've attended and taught at such schools, as well as non-AACSB (or ACBSP) schools. I believe there is a significant difference.

First, understand that to earn either of these accreditations, a school must undergo periodic examination by a team of business educators. They check out the curriculum, faculty, program operation and outcomes assessment. In my experience, most business schools have to significantly modify their operation to achieve accreditation - the standards really do require change from the normal way most schools would operate.

The best business schools in the U.S. (bar none) are AACSB accredited. Period. Check out any ranking list you care to mention. The host of DL schools we talk about here aren't and can't be accredited for a number of reasons - lack of full-time faculty, open admission policies, too few PhDs, lack of library resources, etc. I suspect that many of the DL MBA programs are "cash cows". Changing to meet AACSB accreditation would cost money - and lower the profitability of such programs.

At one level you might think that employers don't care about AACSB. Indeed, most HR and hiring execs probably don't know much about business school accreditation. But they know the names of the "best" (in their opinion) schools - and all of the "best" schools (based on any ranking list you care to view) are AACSB. Hence, students should really consider this.

If you are looking for a MBA that will really light up your career - go for the best. Go AACSB (or at least ACBSP). Sure, you'll have to take the GMAT. The classes will probably be harder. The faculty will, on the whole, probably be better qualified and will likely be involved in research and consulting. You may have to do some "in seat" time. And the three letters "MBA" may sound the same. But the difference is real. Why spend the time and money on a program that isn't professionally accredited (AACSB or ACBSP) when you can get a better education at an AACSB or ACBSP school? Even if you're simply looking for a mid-career boost and you plan on staying with the same employer, why not the best?

If you need DL - consider Indiana University or Duke. Both are nationally regarded. And both are a whole lot more creditable than a Touro, UoP, Baker, etc.

Regards - Andy

 

The difference is real. There is no way my education at National compares to the top MBA programs in the U.S. Nor, for that matter, many of the run-of-the-mill AACSB-accredited programs. But that's not the whole story.

You have to take a look at all the factors. Can you fit the program into your schedule? (Or, change your schedule and life's circumstances sufficiently to take the MBA you want.) Can you afford it? Can you get in? Telling you to drop everything and go for the best MBA program possible might sound nice, but it might not be realistic. Only you can decide.

It is also not the whole story in another, significant, way. Outcomes cannot be measured by learning inside the degree program alone. Mid-career professionals may not receive anywhere near as much a boost from a "name" MBA as compared to people just entering the job market. If you're doing the degree to enhance your career--instead of enter it--then you might get more bang for the buck from an accessible MBA program that doesn't require heavy changes to your earning potential while in school. Perhaps you end up with a less prestigious degree, but you pay a lot less (not just in terms of money) to get it.

Speaking of outcomes, my story: I graduated with my MBA from National when I was 25 (in 1984). The National MBA wasn't going to open as many doors as the other two programs generally available in San Diego at the time, U. of San Diego and San Diego State. But I didn't have to drop my career to complete it. By the time I graduated, I was a commissioned Air Force officer and had been working for 6 years. I was WAY more experienced and capable than the typical fresh-out-of-B-school graduate, and just as young. And these days, I know that if my MBA was from either of those two schools--both accredited by AACSB--it wouldn't matter one bit. No one cares. Maybe it would matter if I had one from Wharton or Chicago, but at this point in my career, I wonder.

Andy's right when he tells you to go get the best degree you can. But weigh all the costs versus the perceived benefits. "Fill the square" with the best degree you can. But do fill that square.

 

Thank you both for your responses.

Ideally, I would love to go to a top-notch school. My situation is that I can't do any residency unless it is local and there are no programs in my area. Cost is another issue. My employer isn't currently paying for tuition reimbursement, and therefore I can't afford Duke. I would really like a program under $20k. Most AACSB programs are over $20k. Another thing is that I am just past the beginning of my career (it's been 4 years since I've gotten my undergrad degree) and I'm just trying to move up at my current place of employment and in later years have the degree so if I chose to go elsewhere, I can get a high-level position. I'm not interested in teaching and not interested in getting a Ph.D. I think region also matter as far as reputation. For example, Colorado State is AACSB and I'm assuming has a good reputation in the West, but I'm on the other side of the country, so I don't know if an employer here is going to be so familiar with Colorado State and look at it any differently as opposed to a non-AACSB school in the West.

Crystal

 

Employer of MBAs

I have had the opportunity to hire a few MBAs from AACSB schools. In general their performance was inferior to other staff members who did not have an MBA or an AACSB MBA. I was disappointed and so was the president of the company.

 

I would say that most companies don't know the I entire deal with AACSB. What I have realized is that the large companies that hold recruiting events usually have a list of schools that they work with. Usually, these are usually AACSB schools. From what I can see, Rich is exactly right! The reputation of a school is key. For example, I live in the St. Louis area and have my MBA from Fontbonne College/University (they just changed their name to university, and it doesn't sound right yet.) This MBA is not AACSB accredited, but I think it still provides me more value than would an MBA from Babson College in Ma., which IS AACSB accredited. The people in this area know that Fontbonne has been around since 1927. Many of their parents graduated from there.

However, I have realized that most of us who earn an MBA, at some time or another have a desired to teach. This is where a non AACSB MBA would hurt. Those who hire for B-schools DO know the entire deal with AACSB and prefer to hire AACSB grads. If you want to teach at a small school, it does not seem to be a problem. But if you want to get on at a state university, unddrstand that they are likely to be AACSB. They are also likely to reject a candidate for tenured faculty if his/her degree is not AACSB. Looking back, I would have chosen an AACSB program.

 

I taught in an large state AACSB Business School for five years. During that time no faculty member was denied tenure because they did not have an AACSB degree.

 

I am not an expert, nor do I pretend to be one in this subject matter. However, a school that does not carry AACSB accreditation is subjected for criticism.

This is more evident when one is seeking employment at an AACSB school and even this is subjective. There are individuals that have graduated from DL DBA/PhD that are teaching for schools that bear the AACSB accreditation, (Ball State, Yale, Kent State, etc.).

Companies are more geared toward hiring someone who is qualified. AACSB becomes a factor only when the college student/graduate does not have enough/any experience and AACSB serves as a leverage when is comes to getting hired by a major corporation.

 

Of course, there are always exceptions, but my comment was that rejection is likely. If you look at the tenured faculty at state AACSB schools, I think you find that a huge majority of them have degrees from AACSB schools.

 

You say this as if during your time at this school, there were several of these candidates. would you care to tell us the name of the school, so that we can be enlightened? My guess is, if the school is AACSB, we will find maybe one or two who do not have degrees from AACSB schools.

 

When I looked at MBA programs, I decided to go to an AACSB school. I decided the additional accreditation may make a difference one day.

I do not put on my resume that SJSU is AACSB accredited. However, I do put that I am in Beta Gamma Sigma, their honor society. I do NOT expect that to land me a job- that's up to me once I get my foot in the door. However, I have found the degree and the indirect reference to AACSB does help open the door.

If I had to make the decision over again (which I am happy to say I don't), I would still want AACSB accreditation. However, this, IMHO, is a personal choice, as is the weight of other decision criteria you may have.

Good luck!