Engineers connect the shop and top floors with an MBA Thursday, 11 August 2016

Opinion piece by Professor Milé Terziovski, PhD (Melb), MBA, MEng. (Hons) | Dean, Curtin Graduate School of Business, Perth Campus, Curtin University

The Master of Business Administration (MBA) is a mature product competing with many other masters programs nationally and internationally. The MBA has been traditionally popular with the engineering profession and continues to attract engineers.

Over the past decade or so large companies have typically encouraged middle managers to undertake part-time MBA studies and normally have provided assistance with their tuition fees and time off from work to attend lectures. However, the current downturn in the WA economy is having a negative impact on traditional trends. For example, two years ago the mineral sector was the largest source of MBA students studying at the Curtin Graduate School of Business (CGSB), Perth Campus. However, corporate sponsored students from some of the big companies such as Chevron, BHPB, Shell and others, have slowed down dramatically. However, the trend for new commencing students has swung towards the public and not-for profit sectors, and to a lesser extent to the engineering profession.

The downturn has caused unemployed engineers to upskill in preparation for the next boom which is likely to be in the oil and gas sector. Further evidence is provided by re-enrolling student numbers which have increased by 23% compared to the same time last year. This is largely due to MBA students that have been on Leave of Absence from their studies to work in the mining sector during the boom, are returning to complete their MBA studies, with a hope of increasing their employability. Our figures for Trimester 1, 2016, show that 33 per cent of a total intake of 150 MBA students, came from an Engineering and Science background, with an average age of 31-35 years old.

Why is the MBA popular with Engineers?

Engineers are excellent vertical thinkers with hands on operational experience gained early in their careers. They appreciate the truism that excellent engineers do not automatically transition into effective managers and leaders. The MBA provides engineers with the opportunity to enhance their organisational paradigm by thinking laterally, and conceptually. For example, subjects such as organisational behaviour, corporate strategy and international business, to mention a few, provide additional, principles, skills and models which help engineers to develop critical and integrative thinking skills which are necessary to solve complex business problems over a longer time frame that may bring uncertainty and ambiguity in the decision making process.

Qualitative evidence from students that complete the double unit capstone consisting of corporate strategy and international business, as part of the Curtin MBA, realise that triangulating vertical and lateral thinking enables them to make a stronger connection between the ‘shop floor and the top floor.’

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