• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Were business schools to blame for the financial crisis? What should business schools do to help prevent similar crisis in the future?

Extracts from this document...

Introduction

´╗┐Were business schools to blame for the financial crisis? What should business schools do to help prevent similar crisis in the future? In the recent decades, there has been a mass of graduates into the banking world from top MBA business courses. These graduates, often from reputable universities and business programmes, have the opportunity to step straight into powerful, prestigious, and high-risk taking positions within the financial world (James, 2009). Such individuals potentially focused their success on profit making and quick money; a debatable strategy with regards to a companies health and success. Such methods of management and regulation have been disputed (Lorsch & Khurana, 2008). However, can business schools really be to blame for the actions of their graduates, or is it simply that ?greed is hardwired into human behaviour? (Lo, 2008), and that business schools played a minimal role in the cause of the economic crisis. Is the link between the business schools and the financial crisis instead due to the nature of individuals that business schools attract rather than the business schools teaching? ...read more.

Middle

Currie et al. (2010) highlights that unfortunately for business schools, there is no hiding the fact that many of the individuals implicated in the disasters that beset Wall Street were MBA graduates. MBA graduate job destinations have been focused on the higher ranks of finance and banking, private equity firms and hedge fund careers, making business schools a prime target for finger pointing for the crisis. Students are taught financial economics which supposedly should equip them for these particular careers, however if this was the case then the economic meltdown clearly shows that these models and practices are flawed. Whether this is due to materialism or ignorance in the application of theories is debatable. As a result of the crisis, many have explored and examined potential methods and theories that may allow business schools to better equip their students prior to graduating and landing in high end financial jobs. Ferlie et al.?s (2008) paper provides a debate examining an alternative form of model of the business school, in the form of a ?public interest? model for the future. ...read more.

Conclusion

On the other end of the spectrum, it is argued that it is not the fault of the business schools, but rather the personality and characteristics of the individual that graduates with the MBA. Enron provides a perfect example, with the business scandal leading to the company?s bankruptcy as a result of greedy, self-interested managers. Is it not that that simple to prove cause and effect, and the fault potentially rests with the capital and the individual who chases it rather than the institution where the individual was educated. Business schools cannot necessarily change the motivation of individuals and future managers, and if a graduate is money motivated, this may well come hand in hand with self-interest, greed, and other characteristics that were key contributions to the financial crisis. Instilling leaders with corporate social responsibility and sustainability is important and has a great effect on the health of an organisation. With only 20% of UK MBA courses including a mandatory CSR module (James, 2009) it is debatable as to whether the graduates of today are prepared with adequate training to be managers of the financial and business world. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. Leadership Theories - this review seeks to determine which theoretical perspectives, theories and schools ...

    A classic quote, cited over and over in the leadership literature, states that "There are almost as many different definitions of leadership as there are persons who have attempted to define the concept" (originally in Stogdill, 1974: 259, Bass, 1990:7).

  2. Innovation For Business Success. It is possible to be innovative in both large ...

    boards for demanding clients with standard technologies that exist at higher scale in much lower cost countries. GPC Electronics Managing Director Christopher Janssen and his top executives drive differentiation strategies through offering innovative supply chain solutions to their clients, of which the boards and the electronics on them are a 'necessary but not sufficient' component for success.

  1. The implications of the global financial crisis of 2007 2009 for the management ...

    also emphasize on appointment of a chef risk officer. Many banks already have a CRO, but the CRO's responsibilities must be equal to what Bank is asking them to do. The CRO helps the company hold a mirror up to itself, to help management distinguish between the warts and beauty spots.

  2. International Business Of Starbucks

    Ownership Location Internationalization Following Dunning's advice, if a company has advantages in 2 of the three OLI factors the prudent decision would be to franchise or contract in the country. With 3 of 3 factors satisfied the company should consider Foreign Direct Investment.

  1. Ever since long-range planning appeared in the business world, there have been many arguments ...

    Organisational strengths could "lead to a customer benefit and a competitive advantage" (Stahl & Grigsby, 1997, p. 30-31). On the contrary, weaknesses could drive the firm to sink in competitive disadvantage and, even, to go out of business. Industrial mapping "helps to identify the strength of the competitive forces that

  2. The significance and application of transformational Leadership

    Subordinates also need development (IC) and guidance (IS) in other words; they need to be motivated to perform well in the right areas. The leader has a responsibility to see that subordinates are effective (IS) as well as efficient (IC). FIGURE 2: ADDITIVE EFFECT OF TRANSFORMATIONAL LEADERSHIP Source: Adapted from Hall J, Johnson S, Wysocki

  1. General Management - organisation, leadership and theories.

    The entrepreneur role is also very important in small businesses, because managers must be creative and help their organizations develop new ideas to be competitive. Small-business managers tend to rate lower on the leader role and on information processing roles compared with counterparts in large corporations.

  2. Creating Leaders of the Future

    quantitative leap has not resulted in the development of the kind of practical management and leadership skills most conducive to entrepreneurial-led economy.' The Council for Excellence in Management and Leadership's recent report, 'Managers and Leaders: Raising our Game' warns that the '...

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work