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All are not equal!

The market for management education in JL Ukraine is growing rapidly. This is particularly the case for MBA programs. Ukrainian and foreign managers however complain that there is a lack of transparency in the market with respect to the quality of the programs offered. Not everything that looks attractive at the first glance corresponds to international standards and is recognised internationally. Tim article should serve as a guideline for both MBA candidates and employer's alike in understanding accreditation of MBA programs

The right choice

The key to making the right decision is linked to the question: Did the relevant MBA program receive an accreditation that is recognised internationally. Ukrainian managers should take the time to investigate who accredited the program they are interested in and accreditation of schools which potential employees claim to have an MBA from.

Ultimately, the question stands: Why does accreditation play such an important role in Europe? Since the mid 90s, the European state-dominated educational system has undergone considerable changes. A big step forward was the Sorbonne declaration of May 25, 1998, which set the stage for a united European higher educational system with the aim of promoting Europe's educational system and it's competitiveness in a global economy.

The declaration of Bologna of June 19, 1999 expressed European consensus to create internationally comparable degrees via academic titles. It was the intention of European countries to issue degrees that would be accepted throughout Europe and in other regions of the world. The growing number of undergraduate and post-graduate programs all over Europe can be seen as the initial result of that declaration.

In order to ensure and promote quality, accreditation procedures were to be established. Professional accreditation was therefore intended to create transparency on the one hand and on the other offer students, employers, and academic institutions orientation about internationally accepted qualification.

Leading the blind

Those that are interested in receiving a degree in business administration and/or economics should look for accreditation by one of the leading European accreditation agencies. A word of warning for potential MBA candidates: business schools that run programs without accreditation are like people driving a car without an operator's license. It is important to be aware that simply being a member in one of the leading accreditation bodies is by no means accreditation. What is key is whether they have accredited the programs they by the respective accreditation body.

So what are the leading accreditation bodies in the US? In the US professionally oriented university studies such as business administration, architecture or engineering require a professional accreditation. That is the reason why more than 40 professional accreditation bodies operate in the US and offer their services for nearly every subject area.

Specifically, for post-graduate educational programs, we find in the US regional accreditation agencies that accredit institutions, professional accreditation agencies that accredit individual programs, and national accreditation agencies that also accredit institutions. The American Assembly of Collegiate Business Schools, which was renamed in 1999 to International Assembly of Collegiate Schools of Business, or the Association of Collegiate Business Schools and Programs are active as professional accreditation bodies for private and state business schools. Of about 900 business schools in the US, 380 have accredited their business programs through the AACSB. Another 300 other business schools are members of the AACSB, among which 120 obtained the candidate status for accreditation. The AACSB is also the widely accepted accreditation agency in Europe.

Besides the AACSB, other professional accreditation bodies have been set up in the US like the 10-year old Association of Collegiate Business Schools and Programs. Its target is the community colleges in the US and the accreditation of their business programs. Community colleges cannot approach the AACSB as in most cases their teaching faculty is not involved in research programs.

The International Assembly for Collegiate Business Education (IACBE) focuses on the smaller private liberal art colleges and the mid-sized private colleges that offer business degree programs. There are links between the ACBSP, the IACBE and the European daughter - the European Council for Business Education. These accreditation agencies are not accepted all over Europe, as they do not correspond to all European standards of higher university education.

Get accredited

In the US, law does not enforce accreditation by non-governmental regional and/or professional accreditation agencies. Only upon request, business schools receive accreditation for their business programs. In reality most of the top universities and business schools accredit their programs because without it they run the risk of not being eligible for possible state subsidies. Also, graduates of schools with non-accredited programs might find that their degree is not re-cognised by employers or employer's organisations. For instance: If graduates want to teach at universities they need to present an accredited degree. Likewise, if students want to transfer academic performance from one business school to the next they may well encounter problems with not accredited degrees. Interestingly entrepreneurs would only employ graduates of accredited institutions.

This side of the world

In Europe, the major accreditation agencies have set up EQUAL, the European Quality Link. This is the European association of national accrediting bodies that has as its main objective the continued improvement of quality of education business schools. As part of this activity, EQUAL aims to agree upon common standards for programs, where appropriate, and to establish benchmarks. Degrees that have been accredited by EQUAL members have the same value as those of the AACSB in the US. Current members of EQUAL include school associations in most of western Europe. Closer to Ukraine are an association in Poland, the Central and Eastern European CEEMAN, and the Russian Association for Business Education.

Within the European accreditation bodies, the Foundation of International Business Administration Accreditation located in Bonn, Germany plays an interesting role. It is the first accreditation agency worldwide that was set up originally by the business community and not by academic institutions. It is unique that the business community itself established educational standards for graduates, which should be met by business schools and the university system. Today, F1BAA not only cooperates with companies, but also with business schools, universities, and government departments in Germany, Austria, and Switzerland and with international accreditation bodies in Europe and the US.

The latest developments in Europe demonstrate that business education is treated as a very serious issue. Academics as well as practitioners are concerned about quality in business education. As Ukraine continues to make efforts to integrate itself into the European Union and accession to the WTO, steps should be taken by both employers and students alike in demanding that Ukraine's business schools choose a path of maintaining high standards of quality through accreditation.

A. Kelling is the director of the Institute of International Business Relations, a private German institute with representation in Kyiv