Learning to Manage: Real World Experience vs. an MBA

I agree that a combination of real world experience and education are much stronger than either of the two by themselves. I do believe that real world experience does have a higher value in the real world, but it is often very difficult to gain that real world experience without first showing you are qualified in one way or the other. Many times that qualifier is an MBA.

From interacting with many companies in different industries as an HR Consultant, I believe an MBA is more valuable than real world management experience by itself.

Modern organizations have their performance management and MIS software do their management work by interacting directly with each employee, so Managers can focus on leading the organization and employees can achieve their individual goals autonomously.

Management cultures are usually focused on tracking and forcing employees to do what managers want with rules, policies, procedures and fear tactics. This is both stressful on employees and management. The result is that employees resent management practices, the organization is not very creative, high performing, innovative, etc.

Leadership cultures involve no fear tactics, it's all about coaching, inspiring and influencing people, while leading by example.

First, imagine that not all managers are good with people or have more than mediocre success at leading their teams. Would you say that their experience is valuable to your organization? They may look great on paper or in an interview and do nothing to improve your bottom line and company savings.

Second, most universities do not have their students actively apply what they've learned in the classroom, because they are so focused on meeting regional and national accreditation standards. However, there are a few great schools that practice what they teach like Harvard Business School.

My opinion is that the value of an MBA is not in the school, the classes they took or the books they read, it's in the individual's ability to research, create solutions and implement what they learned to enhance the performance of their organization. A competent MBA should add no less than 10 times their salary to the profitability of the company each year. http://outsource-hr.com/wordpress/

Great article Gary, thanks for the resource. I've continually found that one of the vital skills overlooked in formal education is understanding human behavior. We can be wonderful with stats, facts and figures and fall on our faces when it comes to getting along or inspiring people.

A core skill that might benefit MBA's is how to monitor and modify our own behavior and help inspire others to behave in positive ways. The interpersonal stuff is so valuable because it sets the stage for everything that follow and also reduces headaches.

According to SHRM, interviewing is the least effective method of selecting the right employee. The most effective method is a 3 day trial. http://outsource-hr.com/wordpress/

As we say in Germany "Paper doesn't blush". So what's the deal of having an army of MBA's in your company who don't know how things are really working? Worst of all coworkers won't tolerate them because they know that they got more experience but lower degrees. When it comes to getting things done experience matters not degress or paper.