We are all connected to organizations in some way, and we all depend on organizational management as part of our daily routines. Organizational management is foundational to the functioning of businesses, nonprofits, schools, professional groups and numerous other organization types. Organizational structure, leadership, culture, policies, practices, problem solving and strategic planning are all important components of organizational management.

For example, organizational management controls organizational communication. How are decisions made and shared with employees? Communication is an essential organizational function that when done well is effective, but when done poorly, can negatively impact employee morale and even stir controversy within communities.

Organizational management is multi-layered and complex, and there are management professionals who spend their careers ensuring the smooth interplay of all these different components so that their organization is run effectively, meets its goals and can have a vision for their future. If you work in organizational management or aspire to, here are major aspects of the field you should familiarize yourself with.

Strategic Growth is Crucial to Organizational Management

When thinking about the future, some organizational leaders are focused on growth. And though growth is important, from an organizational management perspective, leaders should focus on strategic growth.

Organizations worldwide are working to achieve strategic and sustainable development goals. While organizational leaders should always seek opportunities for growth and improvement, it is also important to be cognizant of sustainability. Growth and sustainability do not always align.

For example, corporations that grow too fast with a narrowed focus on financial profits will most likely increase demands on employees and place less focus on employee happiness or a positive work environment. This approach can be a recipe for disaster, with doors that were once open to hiring being forced to closed, resulting in layoffs.

The Importance of Putting Employees First

Today, organizations are placing focus on being more people centered. Stakeholders have pushed back against traditional hierarchical structures, with some organizations adopting non-traditional structures, such as a   or a . This shift in organizational structures is highly influenced by millennial and Generation Z employees, who have different viewpoints about work-life balance, loyalty and leadership compared to previous generations.

Today’s employees want to be a part of organizations where they feel valued, respected, and provided with opportunities to succeed and grow. In particular, sense of belonging is a popular topic within business and education circles. Dr. Maithreyi Gopalan, a professor at the University of Oregon, has studied a sense of belonging and how it matters to students. shows how “a sense of belonging” has been identified as a universal and fundamental human motivation in the field of psychology.

These same principles apply to the workplace. It is hard to imagine anyone wanting to feel unwanted or that they don’t fit in at their place of employment. Yet, how many people experience these feelings? In 2023, journalist and workplace expert “employees who do not enjoy work can experience being disconnected, bored and disengaged,” none of which promote productivity, innovation or success.

Successful organizations require a vision that goes beyond profits. Employee happiness matters, maybe even more so than customer satisfaction. It seems unlikely that an organization with unhappy employees will have satisfied customers. Employees who are disconnected, bored and disengaged might skip protocol steps, make mistakes and cause organizational breakdowns.

Organizational Management Involves Vision

At its foundation, organizational management is a collective of the functions of management all working to achieve organizational goals. Kim Vitasek, senior contributor at Forbes magazine, explained goes beyond the traditional idea of management, how it “takes on a broader, more encompassing role to establish the strategic plan to fulfill the business’s mission and vision, and then carry out those initiatives.”

Kim Vitasek also noted how important planning and organizing are to successful organizational management. Intentional planning and decisions are what lead to the best organizational policies, practices and workplace culture, and can also impact employees’ trust in leadership.

For example, when recruiting a new employee for a management position, leaders who practice effective organizational management strategies will take into consideration the culture of the organization and the leadership styles of candidates for the position.

An intelligent approach is to hire a manager who will work well with team members and vice versa. Failing to do so can instigate workplace conflict, low employee morale and employee resignations.

Organizational management controls employee recruiting and hiring, an example of when business processes are closely intertwined with people processes. To ensure organizational culture and key stakeholders are considered, organizational leaders can invite employees to be a part of the recruiting and hiring process. Employees could help develop the job description for recruiting. They could also help develop interview questions and participate in interviews.

Another approach to creating and sustaining a positive work culture is investing in professional development and internal employee promotions. Supporting employees’ career development offers various benefits, including employee retention. Let’s explore this topic.

Organizational Management’s Role in Employee Retention

Organizations want to retain skilled employees. Employee resignations cost organizations money and disrupt organizational management. The importance of employee retention came to light after the COVID-19 pandemic, which was influential in causing 2021’s . The Great Resignation called attention to organizational management, as organizations were forced to redesign and revamp existing practices and policies.

Some experts are concerned that the workforce is about to experience a Great Resignation 2.0. In July 2024, that, from a group of 1,000 individuals, three out of ten people questioned stated they planned to resign from their jobs within the year. This report isn’t promising to organizational leaders, who are already concerned about fiscal budgets amid economic inflation.

Now, possibly more than ever, organizational leaders must plan for improving employee retention. However, this is easier said than done, especially if an organization is struggling due to a toxic work culture.

Improve Employee Retention With Professional Development

Promoting internal employees and offering opportunities for career development is an inclusive management and hiring practice. Furthermore, it’s a practice to counter employee attrition and promote employee retention.

Organizations that focus on employees’ professional development are shown to have better employee retention. It also helps the organization, ensuring its employees stay up to date with industry trends and the latest strategies. The benefits of professional development include:

• Improved employee engagement
• Increased retention
• An easier time attracting top job candidates
• Enhanced productivity
• Employees reaching their full potential
• More profits

In today’s business world, offering employees opportunities to advance their careers within an organization is a key benefit and recruiting tool.

Coaching and Mentorship Within Organizations

Employee development can also come in the form of coaching and mentorship. Coaching is more commonly used with short-term goals and related to performance, while mentorship is a long-term relationship where a mentor offers their mentee guidance for professional navigation, advice for career advancement and encouragement to step forward.

Mentorships can last for several months or years. Most important, mentorship programs are beneficial to both employees and organizations.

Organizations with built-in, formal mentorship programs create an inclusive landscape for professional development and internal employee advancement. Employees might be uncomfortable or unsure asking a senior employee or leader to informally mentor them. By establishing a formal mentorship program, organizations are taking the guesswork out of mentorship. Additionally, formal mentorship programs offer mentors leadership development on how to best mentor and support mentees.

Developing a Mentorship Program

Management professionals hoping to establish a mentorship program don’t need to reinvent the wheel. Just a quick search can turn up descriptions of mentorship programs used by major companies.

Developing a mentorship program is a collaborative task. Organizational leaders should identify employees to lead the mentorship program, allowing employee stakeholders to collaboratively design the program. You can also following advice from an expert resource, such as , who has written several books on mentorship that discuss best practices and provides tips.

Creating an internal mentorship program might not always be feasible or realistic for every type of organization. In these situations, organizations can still support employees through partnerships with professional organizations within their employees’ industry or role. Professional organizations provide tremendous opportunities for both networking and mentorship.

The Importance of Organizational Management

The 21^st century has experienced dramatic changes in workspace environments and employee needs. Generational changes, a global health crisis and concerns about climate change have all impacted how organizations are managed, and organizations with poor planning and lacking vision are failing.

Smart organizational leaders know the benefits of intentional organizational change management, which provides leaders with a framework to analyze what has happened, what is, and how to reinvent ideas to address today’s challenges and make decisions to meet organizational goals and plan for a sustainable future.

Employee professional development is growing focus of today’s organizational leaders. Nowadays, organizational management professionals need to prioritize their people processes just as much as their business processes if they want to cultivate a loyal, healthy workforce that will help the organization meet their goals and thrive.

·¬ÇŃĘÓƵ offers affordable, fully online business degrees for those who aspire to organizational leadership. Learn more about our M.S. in Organizational Leadership and our MBA. If you’re not quite sure which program is best for you, consult our side-by-side program guide.

A Master of Business Administration (MBA) degree is the . To earn a claim like that, it must be a worthwhile endeavor for business professionals, right?

Let’s start with the basics. An MBA is a graduate-level business degree and, while some may refer to it as a generalized credential, many institutions offer opportunities for students to specialize in a focused business sector like finance, accounting, marketing, human resources, analytics, entrepreneurship and more. Students can also often follow general tracks where they can choose electives and customize their program to fit their unique career goals. Further, MBAs are known for their versatility and applicability across several industries. Managers or leaders in any field can benefit from an MBA and the real-world learning experience that turns MBA students into career prospects.

The versatility of an MBA is among one of its strongest traits. Graduates gain a holistic business education by touching on major functional areas as well as broader skills needed to excel. Accounting, communication, strategy, ethics, analytics, economics, finance, leadership and marketing expertise are just some of the skills graduates obtain. Even more so, such skills are applicable across most fields of work, so the power of an MBA extends even beyond business. Whether you’re an aspiring entrepreneur or senior business leader, an MBA is for you. They’re often offered both in person as well as fully online like at ·¬ÇŃĘÓƵ (ACE). Many professionals who work full time choose online programs due to their affordability, flexibility and shorter completion time.

As MBA programs continue their exponential growth in popularity, the business landscape is seeing an evolving debate: Is an MBA worth it? To answer such an elusive question, it’s important to evaluate the value of an MBA through the lens of return on investment (ROI). This doesn’t necessarily refer only to financial investment, but that of time and energy as well. In this blog, we’ll walk through value propositions including cost considerations, ROI and industry trends. We’ll also dive into how an MBA can align with your personal and professional goals, long-term career vision and potential entrepreneurship. This is your guide to determining if an MBA is right for you!

Who Should Get an MBA?

One of the most significant value propositions of an MBA is its versatility and applicability, making it the popular endeavor it is. Anyone seeking to become a manager and leader benefits from learning how to oversee and direct employees, manage budgets, generate strategic visions, adhere to ethics and more. Business acumen is applicable in all fields of work, so even if you are seeking to upskill your knowledge in general with graduate-level coursework, an MBA can get you there.

In addition, earning potential and hiring demand make an MBA highly valuable. According to the Graduate Management Admission Council (GMAC) , MBA graduates had the highest median earning potential in the United States in 2023 in comparison to other business graduate programs. Recruiters surveyed also indicated that 37% of U.S. employers project that hiring demand for MBA graduates will continue to increase through 2028.

Earning an MBA can result in career advancement, networking opportunities and increased earning potential. Let’s talk through each area.

Career Advancement

Advancing into management and leadership roles is a natural step in most professionals’ career progression. Pursuing an MBA equips you with the skills needed to do so which, in turn, makes them more marketable, employable and promotable. Similarly, MBA programs offer a sense of credibility in the eyes of employers in the business world. When hiring managers see an MBA on your resume, they know you’ve got strong business acumen and the ability to successfully lead business and leadership initiatives. You’ll also be positioned for job opportunities like senior roles or promotions. An MBA is also a great option for individuals looking to change careers. Some graduates describe earning an MBA as transformative and inspiring. With its versatility, an MBA is even a worthwhile option if you know you want to move up in your career but you’re not sure yet in what capacity or field.

Networking Opportunities

MBA programs are great opportunities to build a professional network of like-minded individuals. When you walk alongside others while learning, you welcome an environment of empowerment and motivation to help catapult you to the career goals you’re trying to reach. You meet new people with similar goals where you can collaborate and share ideas. If you choose to complete an MBA in person, you’ll have the opportunity to connect with local professionals. Pursuing an online program may take your networking to a global level. And such opportunities don’t end at graduation. Most institutions have alumni networks where you can connect and not only grow your knowledge through the experience of others but pave a path to a new role. You could even meet your next investor or business partner!

Increased Earning Potential

Many individuals pursue graduate degrees with salary increases in mind. According to another , MBA graduates reported a 77% increase in their earning power. Further, 72% reported that their earnings supported their desired lifestyle. Oftentimes, seeing a salary increase is congruent with career advancement, which we’ve also identified as a benefit of earning an MBA. On average, graduates see a . This is not only helpful when considering annual earnings, but it’s important to think about when you’re contemplating the financial commitment of an MBA. You’ll also want to keep your specific industry in mind as there are several sectors of the business landscape that might have variations in salary projections. .

Is an MBA Actually Worth It?

Even though we’ve discussed the positive outcomes of an MBA, you should also consider the costs to weigh whether such a pursuit is worthwhile. There are four key areas to think through: cost considerations, ROI, industry trends and alternatives.

• Cost Considerations: When we think about cost, it doesn’t always refer to financial costs. It comes in the form of time as well. Financially, however, the cost of an MBA depends on factors like course delivery (in-person or online), institution, location and program length. The . Such high costs have resulted in the growing popularity of fully online, accelerated programs that are often far more affordable. For example, the fully online MBA program at ACE has a total cost of $8,675. Compare this to the in-person MBA at Harvard Business Schools, which costs .
• ROI: Pursuing an MBA is only worth it if there’s a reasonable ROI, especially considering the time and financial commitment it entails. To calculate your ROI, you’ll want to first think about the cost considerations mentioned above that encompass the full picture of what you’re putting into the program. Then, you want to measure this up against the benefits you anticipate like salary increases, promotion, professional connections and more. Don’t forget to consider how long it will take for those benefits to take effect. It can help to try an .
• Industry and Job Market Trends: Whether a business career requires an MBA depends on the level you want to reach and the sector you’d like to work in. For those seeking to climb the corporate ladder, earn a higher salary or become a leader, an MBA is a great way to get you there. The include technology, finance and consulting. are insurance, banking, bookkeeping and administration.
• MBA Alternatives: An MBA might not be the right choice for your desired career path, but don’t worry! There are great including massive open online courses (MOOCs) where you can hone specific skills through flexible learning. You can also complete an MBA certificate or mini-MBA where you get the master’s-level rigor without committing to a full program. If you still want a master’s degree, you can do a Master of Science in Organizational Leadership or something more specialized like a Master of Science in Accounting. Take the time to research whether an MBA or M.S. fits with your career goals.

Is It Worth It to Get an MBA Based on Your Goals?

At the end of the day, whether an MBA is worth it largely depends on your individual career goals. Think about where you want your career to go and consider the outcomes of an MBA. Is this kind of degree going to get you there? Let’s look at a quick example.

Let’s say you’ve earned a bachelor’s degree in business, and you’ve gained meaningful experience at the entry-level to a point where you’ve landed a role in management. As you work as a manager for a few years, you realize you’re ready for more at the senior management or even executive level. You consider how those on your team at that level have master’s degrees, specifically MBAs. You realize that earning an MBA will get you to where you want to go.

It’s also important as a business professional to have a long-term vision. While you may find your landing place at the management level, there’s a possibility that you’ll want more. Thinking about your career destination helps you determine earlier what you need to do to get there. This could be advantageous because if you know you’ll eventually need an MBA, you can pursue one at earlier stages of your career where you have less responsibilities before working in management or another higher-level role that takes more of your time and energy. While many MBA programs are flexible, when you have the bandwidth to complete it is undoubtedly an important consideration.

Some individuals aren’t looking to advance a business career as much as creating one themselves through the power of entrepreneurship. . You’ll gain key skills like leadership and business essentials while networking with potential partners and/or investors. That being said, an MBA won’t guarantee entrepreneurial success, but you’ll have business acumen to give your business ventures the best chance at making it. In fact, , and the entire globe benefits from their boundless success.

Pros and Cons of Getting an MBA

It’s always helpful to look at pros and cons next to one another when making an informed decision. We’ve put together a handy list to get you started!

Conclusion: Is It Worth It to Get an MBA?

In sum, an MBA’s worthiness depends on several factors but most importantly, your personal business career goals. Career advancement, networking opportunities and increased earning potential are top reasons why business professionals get MBAs, but remember, earning a degree of any kind is a time and financial commitment and investment. It’s critical to weigh the benefits and costs to make the most informed decision. When you’re thinking about whether an MBA is worthwhile for your unique career path, you want to consider the costs, return on investment, and industry and job market trends. It’s also helpful to think through possible MBA alternatives to determine if that is a more suitable direction for you. Again, your goals ought to be at the core of your decision to pursue an MBA. Your aspirations are key!

·¬ÇŃĘÓƵ is pleased to offer an affordable, flexible and quality MBA program.