Is the AACSB Accreditation Important?

Most of the responses here have focused on the impact of AACSB accreditation in relation to future employment or studies in academia. So my response will consider other factors. I personal take is that AACSB accreditation is not always a stamp of quality nor will it mean the program is a good fit. AACSB accreditation does however set a standard and you will know pretty much what to expect when it comes to standards and outcomes in the program.

For example, almost all AACSB MBA programs require that applicants take the GMAT, have a GPA over 3.0 for undergrad, and have foundation coursework in business and/or be willing to take this at the graduate level. With that being said, many non-AACSB programs require the same. Within AACSB MBA programs themselves, you will most likely be required to take at least 1/3 of your credits in quantitative business subjects such as accounting, finance, and statistics (sometimes called "quantitative business methods" or "operations management"). You'll have the chance to specialize...but its limited to 12-9 credits of electives usually.

From what I've seen, the non-AACSB MBA programs are more flexible and specialized in their coursework. For example, they may combine the finance and accounting components into one course; but if you want to specialize in Information Systems, 15-18 of your credits is dedicated to that. I'm working on my MBA at a AACSB accredited university, and my specialization is in Marketing. However only 9 credits out of my 54 credit program consists of marketing electives. Now I do not know the specifics of AACSB accreditation standards, but I will say that this seems pretty common...especially among the schools I looked at. These were all AACSB schools.

I used to work at a university that offered an MBA program that was not AACSB accredited. I supervised 3 graduate students who were from the program and I was not impressed in the least. Their writing skills were lackluster, they could barely set up spreadsheets in MS Excel (how they passed finance and accounting....who knows), and if they learned anything about organizational culture and leadership...they sure didn't show it. My GAs from the education and legal programs (which have very competitive admissions...although I don't know who they are accredited by) blew the MBA GAs out of the water in every way. With that being said, I had a previous job where my boss was a MBA graduate from this same program. She was a very competent manager; although she also was an honors graduate from undergrad and had a 4.0 in her MBA coursework. Keep in mind, this program offered courses that had titles and course descriptions very similar to what I was taking. The difference is that a non-accredited school is free to water down the rigor and details in what is being taught. So in a nutshell, sometimes it can be a game of Russian roulette with non-AACSB accredited programs.

My advice to any MBA applicant to any program is that you should 1) ensure the course program is something that will benefit you and that you will excel in 2) Visit the school...talk to professors, advisors, and current students if you can and 3) Do a quick search on LinkedIn to see what type of jobs alumni find themselves in. This can be key when you are unsure of a program's reputation and you are unable to personally talk to any of the program's alumni.

 

Is MBA obtained from a non-AACSB school (recognized at National or Regional level) anywhere in states almost same as an MBA obtained from AACSB school?

 

It's a lot "the same," but it depends on what you need.

Employers don't normally look for AACSB accreditation. Graduate schools do, however.

There is a strong correlation between AACSB accreditation and B-school rankings. I contend it means that AACSB is determined to accredit the top schools. Still, attending a higher-ranked school might matter to some people in some situations, with AACSB accreditation a happenstance. It comes along for the ride.

Here's a model: B-schools have 3 forms of recognition: local, regional, and national. If you're looking at a locality, the B-schools within it will impress local employers to varying degrees, but those employers will likely not know about schools with local reputations but are outside that locality. But they'll likely have heard of schools within the region with regional reputations, and will also have heard of schools with national reputations. And so it goes. For example:

I took my MBA from a school with a local reputation. It's reputation was middling-to-fair. The local state university and the leading private university in the town had better-ranked B-schools. But both have local reputations, too, so employers outside that locale really don't make distinctions between them, even though people in my hometown certainly do. So....

In my hometown, getting an MBA from one of those other two schools would have mattered. But no one else has ever cared.

 

Thanks Rich.

Any known or heard experience on ON-line MBA vs In-class MBA?

 

As long as an American MBA degree has regional or national accreditation, it will be accepted as valid in all US states. Any additional business accreditation (like IACBE, ACBSP, or AACSB) is optional.

AACSB adds prestige, and may be preferred by some employers, but it is not necessary.

I believe that some state laws do give preference to ACBSP or AACSB degrees for accounting (CPA) licensure. However, most MBAs do not pursue CPA licensure.

 

It's way, way messier than that. For example, there are many situations where national accreditation will not suffice.

Not always the case. In some situations, AACSB accreditation is mandatory.

 

Yes, but there ways to overcome this. Namely, having exceptional performance in or more of the other key areas.

 

The question asked about acceptance "anywhere in states", which I took as a reference to state laws and regulations. In that case, I don't know of any state laws or regs that restrict or prohibit nationally accredited business degrees, except with respect to CPA licensure. States don't regulate business degrees very much (unlike, say, law or engineering degrees). It should be perfectly legal to advertise a DETC business degree in any state without restriction (which would not be the case, for example, with a DETC law degree).

To my knowledge, there are no state laws or regs that mandate AACSB accreditation under any circumstances. State law/regs may have a preference for AACSB/ACBSP degrees for CPA licensure.

Now, if this question is not about state law, but about employment preferences in the private or public sector (which are not a matter of law or regulations), then the answer would be different. Certainly some employers may prefer or require AACSB degrees, and may reject or discriminate against DETC degrees.

 

Some states only accept credits from ACBSP and AACSB accredited schools for CPA licensure.

Again, someone might come with a degree from McGill (FT times top ranked) that is not AACSB accredited but don't think the degree would be rejected by anyone for this reason.

Bottom line is that there are thousands of business schools out there and not all the MBAs are created equal. The AACSB accreditation is mainly for the protection of the student.
Many argue that they don't need the accreditation but you might also argue that many don't need an MBA but just get it because they are available and not so hard to get nowadays.

There are tons of videos on you tube and other boards that talk about the lack of value of MBA programs. Many students are angry because their online MBAs that required no GMAT, no exams and required one year of online part time work are not paying off and they are not getting the 100K plus salary they were expecting. Students should know that professional accreditation and reputation of the schools attended will impact their chances of ROIs and anything that looks easy, convenient, etc normally has a catch.

 

Not sure if this is correct. There are definitely states that prefer ACBSP or AACSB accredited degrees, like for example Utah. You can see that most of their licensure tracks (Options 1, 2a, 2b, and 3) are based on ACBSP/AACSB degrees.

But Utah still has an alternative licensure track (Option 4) that only requires a regionally accredited bachelor's degree. In this case, your transcripts would have to document a whole lot of business and accounting courses -- more than what would be required from ACBSP/AACSB candidates. So an ACBSP /AACSB degree is better in Utah, but it is not absolutely necessary.

ACBSP/AACSB can make CPA licensure easier, and in practice, I suspect that most CPAs probably do have it. But I don't know of any states that make it impossible to get a CPA license with a plain-vanilla, non-ACSBP, non-AACSB, regionally accredited degree.

On the other hand, there are definitely states that make it impossible to get a CPA license if you have a nationally accredited degree. Again, Utah is an example -- none of their options mention NA degrees, only RA.

 

Texas State Board of Public Accountancy:

The Board recognizes colleges and universities in the United States which are regionally accredited by the Southern Association of Colleges and Schools – Commission on Colleges and which offer a baccalaureate or higher degree.

The Board may recognize higher education institutions that are regionally accredited by one of the following associations provided that the institution's business school or accounting program is also accredited by the Association to Advance Collegiate Schools of Business-International (AACSB) or the Association of Collegiate Business Schools and Programs (ACBSP), which are professional business accreditation organizations:
1. Middle States Association of Colleges and Schools;
2. North Central Association of Colleges and Schools – Higher Learning Commission;
3. New England Association of Schools and Colleges – Commission on Institutions of Higher Education;
4. Northwest Commission on Colleges and Universities;
5. Western Association of Schools and Colleges – Commission for Senior Colleges.

A university that does not meet the requirements may appeal to the Board for individual consideration.
TSBPA - Examination - Education - Schools

 

Interesting. Implicitly Texas is saying that SACS is superior to all of the other regional accreditors. I can't think of a rational basis for this distinction.

 

That is the implication. Although SACS itself would probably acknowledge that other regionally accredited schools are equivalent.

 

That information source frpm Texas might be in need of an update. ACBSP is the Accreditation Council of Business Schools and Programs, and has been that way since about 2010.

 

I really don't think AACSB is really all that important unless you are either:

a. Competing for executive level employment within a VERY prestigious organization/ firm
or
b. Plan of teaching at an AACSB school

I've been sitting on several executive level boards full of MBA's and PhD.'s and never have I heard a word about AACSB accreditation good or bad. The fact is that 99% of the world doesn't care so long as you can produce and be successful in a professional setting. Be reminded that many career students with little to no real life professional experience will act like the sky is falling, but in reality, you should be concentrating on whether you are viewed as an asset who provides considerable value, or a liability they can do without.

But hell what do I know . . . :soapbox:

 

I agree, if you are good at you do, it won't matter if you only have a high school diploma. The main reason to do an MBA is mainly to raise your profile with the hopes that you can get a better job that pays better. AACSB accreditation by itself is not going to give you a better salary or opportunities (unless you want to teach), however, the accreditation ensures that the school has certain quality standards that would help the student to reach his or her goal.
I have worked for few MBA programs that were run with only part time faculty, no research, very little quantitative course requirements, etc. This type of MBA is not very strong as you are not able to interact the professors that not only have working experience but also are capable of generating new knowledge. Some programs dilute the content to attract students and remove or minimize accounting, finance, operations and statistics to make them more attractive, this is not in the best interest of the student as these courses make a more analytical business professional.

In few words, the accreditation is to ensure certain quality standards and is not an automatic ticket to a better salary. We hope that with a better education, the student is able to perform better in the work place.

 

I've said this before, but I have never found the origin (accreditation etc.) of someone's degree to be an issue at all unless it stands out as being either amazing (Harvard) or laughable (fraudulent). Aside from those two extremes, I have found that few people ever talk about where they got their degrees, and even fewer people know or care about where other people got their degrees from. If somebody is making an issue of someone else's degree, it probably just means they're "just not into" that person; the degree is a convenient excuse.