Traditional MBA program loses its attractiveness. More and more entrants choice  short-term or specialised programs. A craze or desire to save?

The diploma full-time M.B.A., were once pride of graduates of business schools, lost the prestige. Quantity wishing to receive the diploma sharply fell for the last years therefore as well as teachers and students are revolted by high cost of training and call into question value of the diploma at employment. One question remains without the answer: whether traditional program МВА will get again the former shine? Or it became the overestimated goods?
 

Till now it is not clear, reduction of number of entrants is really critical, or it is a harbinger of long-term changes. Dalfn Atkinson, the Vice-president on relations of production in Graduate Management Admission Council, is convinced of recurrence of this process. «I am inclined to optimistical assumptions, and I think, that this tendency will not be for the long period», she speaks. «But I am assured, that this is not a business of one day, and to expect global changes in the near future there is no sense. But as the labour market develops fast rates, there is a probability, that in the future  more possibilities for graduates will appear, that again will lead to splash in interest to MBA program».

She does not expect the same splash as that happened on September, 11th, 2001, after terrorist attacks to New York and Washington, but quite possible lifting to habitual level. «I do not expect, that I will manage see again such high indicators as in 2001-2002. This splash did not correspond the laws of logic and cannot be named adequate».
Doing forecasts for 2010, Council remains optimistical, assuring, that demand for all kinds МВА will necessarily grow, it is caused by favorable demographic conditions in some parts of the world. Statisticans on the population show, that in the USA and in Asia the increase in quantity of the young men which age corresponds to middle age of entrant МВА is expected, and it is 25 - 29 years. Nevertheless, council  says, that the quantity of people of such age in the Western Europe will inevitably fall. 

Already now Council of graduates notices, that the quantity of people wishing to be tested by GMAT starts to increase. Nearby 133 000 persons have passed this test for the first 8 months of 2005, it is on 1,7 % more than for previous year. The quantity of the passed tests in the USA has gone down on 1 % while outside of the USA this quantity has increased on 7,6 %.

But during carrying out of interrogation of schools about their traditional programs in 2005, Council has found out, that only 20 % from them have noted increase in quantity of the submitted documents. Programs like part-time MBA and executive MBA, allowing students simultaneously to work, succeeded much more. The quantity of interested persons has increased in 38 % of executive MBA programs and 46 % of part-time programs.
«The balance nevertheless is declined towards those programs which reduce alternative cost of the decision to go to business school», Albert Naemi, dean of Cox School of Business says at Southern Methodist University. «It is easier to leave school with saved 100 000$, cost of the traditional program, thereby having provided himself the future on the following some years».

Since 1997 the entry for the traditional program МВА in Cox School has fallen from 270 to 169 students while the entry for part-time program has increased from 449 to 600, and to the program executive-MBA from115 to 168 candidates. Doing the rate on this tendency, the school has finished building of Executive-Education Center, having spent thus 18,6 million dollars. SMU also plans to develop a special course under the finance and management for those students who do not wish to get a post of the general director of the company and to whom it is not so necessary to get МВА as such. «Some people do not require a variety of courses and subjects and a full set of management skills», dean Naemi sayss, «perhaps, good work in sphere of the finance» is simply necessary to them.

Cost is one of the greatest difficulties at passage of traditional program МВА. The price for training continues to advance inflation percent in the USA, and cost constantly grows in the majority of schools, it grew even then when it was very difficult to graduates to find work. 

And though the market of MBA labour market strengthens the positions, many people nevertheless cannot dare to afford themselves the huge sum for training, thus not having received any guarantees. Such programs as part-time and executive MBA are more attractive as during training time students can not only to work, but also submit the application to the employer on the financing of training.

Cost grows on 5 %-7 % for a year in many schools, and at some schools cost of two-year programs breaks records in 40 000$ a year: for example students of МВА in Stanford University will pay 41 340$ for training in 2005-2006 while University of Pennsylvania's Wharton School exposes the account on 40 458$. Add accommodation costs and accompanying expenses for training, and receive treasured 100 000$.