MBA
The MBA designation originated in the USA, emerging as the country industrialized and companies sought out scientific approaches to management. The first American business school, Wharton School of the University of Pennsylvania, was established in 1891. Tuck School of Business, part of Dartmouth College, offered the first MBA in 1900.
In 1881 the Chamber of Commerce and Industry of Paris founded HEC as one of the first business schools in France. In 1898 the University of St.Gallen was also founded as one of the first business schools in Europe. As the US MBA model emerged at the turn of the 20th century, Europeans developed centres of excellence in business, such as at the universities of London and Manchester. Elsewhere in Europe, companies started management programs, such as Cass Business School, London, IMD, INSEAD, Henley Management College and Ashridge to provide management training for promising employees. In 1969, HEC started the HEC MBA Program. However, unless otherwise specified as Mini MBA program leading to an award and formal alumni status, quality of open-executive programs are not comparable with a formal MBA degree.
In the United States, the average cost attaining an MBA degree via an accredited full-time program (excluding room and board) rose from $124,000 in 1993 to $162,000 in 2001 (see Davies and Cline, 2005). The bulk of the cost is in the form of foregone earnings ($109,000 in 1993 and $139,000 in 2001). Accounting for the decrease in expected unemployment as well as the increase in expected wages and expected wage growth, the financial benefits to holding an MBA degree are the equivalent of an 18% rate of return on the cost of the degree (see Davies and Cline, 2005).
