business management salary

business management salary

Exploring the Impact of Business Management Education on Salary Growth

1. Introduction

In the current study, we focus on the effect of business management education on employee promotion and associated program increases. Our primary interest lies in the substantial focus on business education and the often substantial cost of performing such education. Indeed, numerous challenges inhibit the effective transfer of much of the knowledge created in the business faculties to society. These extend from elements such as the underlying incentives for targeted knowledge generation, the effective communication of such precepts, and the measurement gaps inherent in proximate areas like management, marketing, operations, and business strategy. Clearly, business education has enjoyed massive growth in the United States over the past several decades. At current levels of spending, the public good of an educated citizenry becomes a challenging perspective to reconcile.

Business management education represents an important form of human capital investment that can lead to both financial and nonfinancial returns. Employees can reap ample rewards from specialized training in strategies relating to various business management subfields ranging from marketing to communications to human resource management. By enhancing general training across multiple disciplines, business management curricula enable students to develop a wide array of skills and competencies. These competencies may be instrumental in crafting strategies for career advancement and associated pay.

2. Theoretical Framework: Linking Business Management Education and Salary

Contrary to popular belief that good managers contribute much to organizational performance but are not profited therefrom so seriously, average salary growth of students working in Hong Kong may outdistance those of his SEA counterparts not exceeding. Since the unit cost of hiring an industry professional is not measured, the results obtained in this study can give only a partial economic value of education. The findings here are quite specific to students from a UK university. Business programs among colleges and universities in the world vary significantly in terms of class size, lecture quality, content of syllabus, industrial relevance, number of industries/job functions, and geographic areas/regions the institution targets.

This paper examines the growth of salary for Asian business entrepreneurs in Hong Kong and South East Asia (SEA) and assesses the impact on salary of business management education acquired from a top-ranking UK university. Business growth to be measured by the number of staff in the firms. After identifying the general trend and changes of salary, factors influencing the changes of staff number including education are analyzed. It is examined whether university management education is a worthy investment. Data are obtained mainly from a 20-year longitudinal study which commences in 2009 and follows the progress of one graduating group of university MSc business management students. The findings show that remarkable enhancement of salary is experienced by students studying in the UK and starting the first job in CEO’s capacity. Staff number of the related companies would hardly have any positive association with education levels, but generally negatively correlated with family business ownership.

3. Empirical Evidence: Case Studies and Research Findings

The decades of lengthy and expansive evidence thus conclude that the salary wage premium for an undergraduate business or management degree program over that of training in other areas of concentrated study is typically infinitesimal, statistically insignificant at the traditional confidence levels, or absent. Such findings suggest that there are no direct private monetary incentives to attract students into these academic programs. Indeed, interest in business training is often engendered by hopes of the prestige and illicit rewards arising from successful market entrepreneurship or the management of money and capital in the business enterprise sector, as has been chronicled in the classic economic texts of Mincer or Schultz.

Empirical studies of the impact of undergraduate or graduate business education on the salary growth of individuals after 20 years or more of work control for other influences on earnings, especially academic ability and career choice preferences. As part of the analysis of human capital profitability, the graduate degrees obtained are also considered. Using two prominent data collection efforts, the baccalaureates from 1976 and the National Longitudinal Survey of the High School Class of 1972, the completion of a business undergraduate or professional degree does not lead to any significant gain over individuals who elect to study in other disciplines. When large universities with undergraduate enrollment in excess of 15,000 students are the sample focus, business graduates on the whole earn smaller amounts. Aggregation to various college degree levels as well as categorical desegregation into ten business categories of majors does not alter the result.

4. Practical Implications: Strategies for Maximizing Salary Growth

Demands and needs of business and industry in terms of the level of competence, skills and capabilities of business management graduates are higher today than the requirements of the boy or girl in the street. This research sought to remedy a dearth in literature by examining actual salary histories and salary growth of employed alumni. It attempted to assess the success of the business management faculty’s business degree graduate destination career development by the comparison of career salary history groups who held a faculty-type business management three- or four-year or advanced business degree, utilizing an alumni database with a wealth of business information.

In the results section, we found that what appears to matter is not so much having a general business management three- or four-year or advanced degree, but the actual success of the business management faculty of the business school from which the alumni graduated in impacting the salary history of its business degree program alumni. It is more the merit of the educational offering and the quality of the academic achievements of the business degree holding alumni, and whether these median or distributional salary growth impacts differentiate business management from other major studies. It is a true challenge for business faculties of business schools of the 21st century. What can the business management faculty do to ensure relevance of alumni to industry and business, their contribution in terms of human capital in industry and business, and the return on investment for parents and students?

5. Conclusion and Future Research Directions

These study findings carry a number of implications. First, they add to our understanding of the utility of business management education. Despite the mixed assessment of business management education in previous studies, we add to the growing line of work suggesting a positive relationship between business management education and salary outcomes. The more nuanced view of business management education and salary relationships presented in our current findings is useful for prospective undergraduate and continuing education students, employers, and human resources managers. Since tuition costs and time devoted to education may potentially work as a barrier between the two, we also stress the importance of more such efforts.

In this study, we set out to examine the relationship between business management education and salary growth of working professionals. Through the evaluation of base and total salary growth of employees at two distinct organizations, we found that business management education attainment was associated with higher base salary and total salary growth. Furthermore, compared with employees with a high school diploma only, guaranteed hourly and salaried employees exhibited significantly higher base salary and total salary growth if they had a business management degree or business and technical certifications, but not a business management certificate. Non-guaranteed hourly employees who attained a business management degree or certificate showed significantly higher total salary and base salary growth. While the magnitude of the positive relationship between business management education and salary growth was generally greater at Organization B, employees at Organization A seemed to benefit more from both business management degree and certificate attainment than employees at Organization B.