The standard graduate degree in business is the Master of Business Administration. So what are the benefits of a Ph.D. in Business Management? Learn now.
Starting in the 1950s and 1960s a new level of business degree emerged: the Ph.D. in Management, or Business Management. The business doctorate was designed to provide students an opportunity to delve into theory and research regarding business management, something the Master of Business Administration couldn't provide. So what's the different between the two, and what are the benefits of a Ph.D. in Business Management?
What's Wrong With the MBA?The Bureau of Labor Statistics (BLS) notes that management analysts, department directors, and vice presidents in management typically need the Master of Business Administration degree to develop a successful career and rise through the ranks of the corporate world. At the same time, 26 percent of all workers in business management don't have traditional employee positions: they are consultants.
Some management consultants have the MBA, while others might only have a bachelor's degree or just a high school diploma. A few might not even have that: entrepreneurship isn't about academic degrees, but rather about business success. An individual can start a company, get clients or customers, manage inventory and/or time, develop strong accounting practices and create a highly-successful corporation without setting foot in a college classroom.
So why do some people go after a Ph.D. in Business Management is the MBA is the standard degree for higher levels of corporate work and management consulting?
Benefits of a Ph.D. in Business ManagementThe MBA and the Ph.D. are two completely different degrees. The MBA is a practical, hands-on degree that uses the case study method to teach future corporate leaders and entrepreneurs specific skills they'll need to manage a small business or a corporate department.
Like the MBA, the Ph.D. in Management includes courses on:
- business law
- human resources
- international business, and more
Salaries and the Ph.D. in Business ManagementThe average salary for professors of business is $100,626, according to Salary.com. The Bureau of Labor Statistics notes that the median salary for all people working in management jobs in 2008 was $73,570. These numbers are a bit deceptive, as it's apples and oranges compared.
Business Management Ph.D. holders can straddle both worlds, working as a full-time professor while providing management consulting at higher corporate rates on a part-time basis. A director-level job in a large multinational corporation can bring a seven-figure salary with bonus for an MBA, though. Money, therefore, shouldn't factor into the Ph.D. in Management. Love of research and theory should.
Whether students decide to go for the Ph.D. or not, research every option. Go to academic fairs, talk with business professors, and look into books, career service seminars, and online information about the benefits of the Ph.D. in Business Management. The career option in today's world is a choice between the fast-paced life of the corporate world and a slower, less remunerative academic job. There is no right answer, but there are many benefits to getting the Ph.D. for the right person.
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11 Edition, Management Analysts.
"Ph.D.s in Business: Working at the Frontiers of New Knowledge." University of Southern California, 2006. PowerPoint presentation for student recruitment