MBA gives employees new edge

Corporations battling in the increasingly competitive world market are employing a new weapon, extensive management training …

Corporations battling in the increasingly competitive world market are employing a new weapon, extensive management training through Masters in Business Administration (MBA) programmes.

Traditionally, Ireland's well-educated workforce proved its greatest asset. Today, companies based here are building on that past by encouraging their most valuable commodity, their employees, to pursue advanced degrees.

MBAs are the business accessory of the 1990s as recruiting, training and maintaining the best staff become primary business goals in the global economy. Multinationals have long offered packages that include opportunities for staff training and development. These have grown from software training classes to full university degrees. In the past few years, more Irish companies are taking notice and offering employees educational incentives.

Former director of the Dublin City University Executive MBA programme, Mr Billy Kelly, says: "This reflects that within organisations now there are far more senior managers who would have academic qualifications themselves, so they see this as a logical route. I don't think it's a peculiarly Irish influence, it may be the presence of many multinationals in Ireland. Ireland readily imports European or American management culture."

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MBAs are offered at universities throughout Ireland. "There are various options available from the business schools, usually a full-time or part-time executive programme. Full-time obviously requires a leave of absence for a year. The executive programme starts in late afternoon in the business schools, so employers must release the individuals. There's a growing awareness as to the value of the qualification," says Mr Denis McCarthy, president of the MBA Association. The organisation, which represents 500 MBA graduates in Ireland, has tripled its membership in the past three years.

Knowledge is power, and a well-trained staff is the greatest commodity in an information society. "MBAs are a very good resource and an investment in the future profitability of the company. From an individual's perspective, they can meet their own personal objectives for increased mobility and advancement," says Mr McCarthy.

Staff shortages mean companies have to try harder to keep existing employees happy. Educational incentives potentially reduce staff turnover, increase company stability, loyalty and create viable career paths for employees.

Expenses associated with MBAs include course fees, books, materials and loss of staff time. These costs hit smaller companies much harder than the multinationals. "I don't think there are companies that would see it as a negative but for smaller companies it does represent more of a burden. Larger companies won't be as affected by individuals taking time off," said Mr Kelly. To combat the training imbalance, FAS has offered educational grants to companies since 1992. Grant limits for the Training Support Scheme depend on the size of the firm and favour small to medium-sized companies.

Firms with 20 or fewer employees may receive grants of 80 per cent of eligible programme costs; those with 21 to 50 staff, 65 per cent; 51 to 150, 40 per cent; 151 to 500, 20 per cent of costs. A limit of £30,000 is payable to any firm a year with only £3,500 allowable per year in respect to any one employee.

The scheme is open to firms engaged in manufacturing, internationally traded services, physical distribution, wholesale, retail, motor and contract cleaning sectors. Non-manufacturing construction firms that trade internationally are also eligible.

Courses eligible under the scheme include external, internal, overseas and some open learning courses. Most MBA programmes currently offered in Ireland are eligible for the scheme.

The popularity of training and development is evident in the response to the FAS programme. "There's been a huge demand for grants under that scheme over the years since its inception. We can never meet all the applications for grants under that scheme," said a FAS spokesperson.

Despite the potential lack of funding and loss of employee time, MBA programmes are inundated with applications. Dublin City University offers just one programme, the part-time executive MBA. "We aim to take in 30 people in any year, about 100 people apply," said Mr Kelly.

University College Dublin's Michael Smurfit Graduate School of Business also accepts just one in three applicants. The school currently has nearly 300 MBA students, with 40 in full-time study and the remainder spread over three part-time programmes.

"There's a full-time for one year, part-time on evenings during the week and some weekends for two years, and an international executive MBA on Fridays and Saturdays, part-time for two years. We also offer a specialist health care MBA run in conjunction with Royal College of Surgeons, part-time for two years," says Ms Niamh Boyle, director of marketing.

Irish companies aggressively recruit from the Smurfit Business School. Since October, 120 companies have approached UCD's dedicated careers and advisory service looking for MBA or MBS graduates, says Ms Boyle. Although the majority of students are already in employment, those looking to leave their jobs are being actively approached by several potential employers.

Mr Leslie McCauley, regional manager of the Open University Business School for the whole of Ireland, believes a real change in attitudes towards MBAs has taken place here.

"I think it's for several reasons, individuals are recognising that broadening their experience, on their own initiative, is very desirable from a career point of view and is seen as positive by the employer. More companies are recognising that they need to invest more in management development, and research is bearing that out." The open university system offers an alternative to full- or part-time study through a self-study programme under the direction of a tutor.

Ms Ann Slein, marketing manager of Gourmet's Pride, elected to pursue an MBA through the Open University programme because of its flexibility. "An executive MBA must go to a lecture every Saturday and one afternoon a week. There's no way for me to take that time off. I needed flexibility because I do a lot of travelling with work."

Business school is not just for corporate employees anymore. "Irish companies are very good and do tend to invest in training for their staff if they feel they have good training opportunity. We even have people in the MBA from the Garda who need a general management qualification. It's not just people in business, it's people in the public sector who feel a need for a strategic outlook," says Ms Boyle.