Positive Impact on the Economy
June 3, 2014
Master of Business Administration programs in Poland have had a positive impact on the development of the Polish economy over the past 25 years, even though the impact is difficult to measure.
Education in management, which is most effectively provided by MBA courses, has contributed to the quality and efficiency of management in this country. In the 1990s, MBA programs placed more emphasis on “hard” knowledge and skills, for example finance, accounting, strategic management, business plans, business law and marketing. This was the kind of knowledge that entrepreneurs, businesspeople and managers needed the most when a market economy was emerging in Poland. “Soft” knowledge and skills were less important back then. At present, MBA programs are more balanced, which means that skills associated with leadership, team management, negotiation abilities, effective communication within a team, and the psychological aspects of management have gradually gained importance. This was an evolution in the right direction as it met the needs of those who were taking part in MBA courses and at the same time it was what the expanding economy needed.
Speaking of the positive impact of MBA courses on Poland’s economic development, it is necessary to distinguish the good programs from the average ones. The best programs, and there are several of them, are given Master Class ratings in league tables compiled by the Forum Association of Management Education.
Participants in the best programs want these to devote the most time to discussing and solving problems encountered in business practice. They want theoretical subjects to be conveyed in a concise form and with references to business practice. A big advantage of a good MBA course is that it teaches people to see a business as a whole, in other words to look at a firm from a wide, strategic perspective. Also important is the right proportion between short-term and long-terms effectiveness. Short-term operational effectiveness requires technical qualifications, knowledge about the sector, about processes and management methods, and a task-oriented approach to staff management. It ensures that operational results are achieved, but may push long-term goals and employee motivation into the background. Long-term effectiveness requires visionary skills, strategic planning, the ability to build relations and inspire employees. Many leaders and managers who contribute to the development of the economy know how to combine these two approaches.
The salaries of MBA graduates indirectly prove that MBA courses have a significant impact on the economy. They earn 2.5 times more than their peers who have completed only postgraduate programs. You may conclude that, since businesses and corporations pay MBA graduates much more, they appreciate their positive contribution to the development of firms and of the economy in general.
Prof. Wojciech Rybowski