Is the Ph.D. or DBA more Aligned to Current Business Needs?

Are professional or traditional doctorates more significant in today’s economy? A paper by Banerjee and Morley reviewed the growing trend of professional doctorates and the possibility that they are more aligned to the executive needs of running modern companies. A professional doctorate is more focused on applied type research based within real world business scenarios. Traditional Ph.D.’s are primarily focused on theoretical underpinnings and are more concerned with a broader theoretical base.  Should one earn a DBA or a Ph.D. in business?

Some have argued that the professional doctorate is superior because it focuses more closely on workplace issues and uses theory in a practical and applicable manner.  The traditional Ph.D. is seen as an academic degree most applicable for teaching and academic research. Fundamentally, the two degrees are perceived as having two different purposes with the professional doctorate more in align with corporate needs. 

It is believed that universities face increasing pressure to provide knowledge management skills as offered in a doctorate program. It is believed that PhDs have a greater focus on theory to enhance business school prestige but are not focused on solving practical problems. Thus, an industry-academic divide has been created and the professional doctorate balances the need of turning theory into strategic practice. 

DBAs have the capacity to draw from a wide range of knowledge and use that knowledge to focus on the issues that are currently important in the marketplace. The professional doctorate pushes academia to be more relevant to modern business problems and in turn creates additional support for doctoral education. 

The key to any successful doctorate program is to the ability to use past knowledge and theoretical understandings to create a process whereby the information is blended with professional knowledge to solve practical problems. As graduates develop the research skills they can continue to use knowledge, theory, experience, and professional skills to develop problem solving frameworks. It is seen as a degree of empowered knowledge. 

Even though the paper doesn’t specifically state this concept there are fundamental differences between a Ph.D. and a DBA. The Ph.D. generates theoretical knowledge that creates a deeper underpinning to practical knowledge but is relatively removed from solving direct problems. The DBA is a reflective practitioner that generates knowledge that is more closely associated to a current problem at hand and can be implemented without major processing. It is the difference between asking “What if?” and “How to?”.  The Ph.D. creates the scholar and the DBA creates the scholar-manager.

The process of earning a DBA includes the research, writing, and defending of a dissertation that helps to enhance the analytic, rhetorical, and critical thinking abilities of the graduate. In addition, the training provides an opportunity to learn new writing styles and how to use analytical methods to further ones understanding of day-to-day business practices. Statistics and analytical analysis helps to ensure accuracy of the research in order to push for more relevant results.

One can conclude that a Ph.D. and DBA have two fundamentally different outcomes with one focused primarily on theory and the other on the practical application of that theory. Both share a level of similarity in education and methodology. Even though the report does not indicate this concept, it would seem that the increased need for the practicality of the DBA and the growth of online education show a similar trend. As the majority of online students work for a living, and may already be focused on maintaining their careers, the DBA would be most aligned with their needs as well as the needs of their employers.

Banerjee, S. & Morley, C. (2013). Professional doctorates in management: toward a practice-based approach to doctoral education. Academy of Management Learning & Education, 12 (2).

Sallie Mae's Report Indicates Parents Adjusting to Educational Costs

A Sallie Mae Report entitled How America Pays for College 2013 brings to light some important changes occurring in the financing of education. Parents and students are finding new strategies to adjust to increases in cost which include opting out of dorms, applying for grants, working more hours, and cutting back on things that are not necessary. Despite the growing cost of education students and parents still believe in the power of education and the ability to afford a better life. 

Even though a general trend of college costs has been increasing, over the last few years it has leveled out to $21,178 which is down from 2010. Yet parents and students are being more frugal and this could have some influence on the plateau and how long that plateau lasts. Wealthier families are spending a little more than middle class families while lower class families are pulling back on their expenses while attending school. 

How Students Are Paying for College:

Student Borrowing 18%

Parent Borrowing 9%

Parent Income & Savings 27%

Grants and Scholarships 30%

Relatives & Friends 5%

Student Income and Savings 11%

Parental spending on college declined a significant 35% from 2010 leaving children to find alternatives. On a positive note the 529 educational plans have been increasing for longer term savings. The information may indicate that the ability to pay cash for education is declining and there is a shift toward longer-term saving plans. It does help indicate a level of adjustment and sophistication in decision making as a direct adjustment to the educational and economic market. 

Parents from middle and upper class families were less worried about paying for their kid’s college. Lower income parents were still worried about the availability of financial aid, grants, and their incomes. The majority of people still see college as a way to work in an occupation they are interest in as well as the possibility of earning more money due to their educational achievements. 

The report provides a strong overview of current educational perceptions and they methods people are using to pay for their college education. It is full of information, charts, and graphs. Americans are finding ways to work around the difficult costs and choices they have to make. The report, as well as other reports this year from other organizations, indicates there may be a large shake up in higher education in the years to come. Good or bad the people will continue to adjust and change. 

How America Pays for College Report

Increases in Higher Education as a Result of Non-Essential Educational Services

Higher Education is changing and may be indicative of some challenges that will need new solutions and better ways of managing the educational system. A report by the Joint Legislative and Audit and Review Commission (JLARC) to the general assembly of Virginia indicates a number of important education trends such as cost, state investment, secondary higher education services, student loan debt, and graduation rates of both Virginia and the nation. Even though the report focused on Virginia it did highlight some national trends and changes. 

A Virginian report indicates that the majority of newer higher education costs are a result of auxiliary services. At 15 Virginia based higher education institutes,  spending increased from $2.6 to nearly $6 billion dollars in the past two decades. Staff salaries, benefits and maintenance were not the majority of these increased costs. Higher levels of spending were found in academic services, research, academic support, student support, housing, dining and sports. 

Since 1991 to 2011 the institutes of higher education collected more revenue than many comparable institutes in other states. In 1991 they collected approximately $16,229 to a national average of $10,952 while in 2011 they collected $35,000 to the national average of $27,000. State funding of this cost declined from 27% in 1991 to 15% in 2011. Thus, even though more money is being collected, more of that money isn’t necessarily making it into core educational functions. 

This is not unique in the sense that most states are investing less in higher education in terms of total percentage of costs. The national average in 2011 was 39% and this has declined to 20% in 2011. Together it indicates that not only Virginian traditional education costs more but also is becoming more expensive nationally. The problem is that the increase in spending is also matched by declines in state spending. It appears to be providing a trend toward a collision course where college becomes strictly a student concern. 

Despite these difficult statistics Virginia has done better than the national average in graduating approximately 46% of students within four years. This is good news as this means students are staying focused and getting out of college faster thereby reducing their costs and increasing their overall productivity to the economy. The faster students can learn needed skills and move out into the working fields the better their rate of investment return. 

Problems do arise when students are shouldering a greater proportion of costs. As state funding has declined students have had to increase their debt load to continue their education. In 1992 the average student loan amount was $3,318 while in 2011 it was $9,893 meaning that there was little or no way for students to attend college without hedging out their current education with future earnings. 

If we take a critical look at this information we may find that increases of costs not based in instruction as well as decreased state spending creates a collision course for student loan debt. As traditional higher education institutes raise their spending in services outside of instruction such as room, board, and student support and sports they leaving behind a proportion of their traditional purposes. Yet these prices come with greater student loan burdens on students who have little to no option but to hedge their future earning power to pay for these services. On a positive note the encouragement of an actual four year degree helps to move students from learners to producers in a quick paced manner. 

REPORT

Parents Finding New Ways to Pay for College

The cost of education has been hitting national airways for some time. Tuition and boarding costs are rising and parents are trying to find new ways of paying for their kid’s education. Changes have occurred over the past decade indicating additional reliance on tax benefits and grants. A 2013 report entitled Trends in Higher Education by the College Advocacy and Policy Board helps highlight how parents and students are paying for education and making ends meet. 

The report outlines the results of a study analyzing trends of how parents and students are paying for college. An average of 2002/03 fees and tuition for full-time students were $8,760 and rose to $11,960 in 2012/2013 marking a 37% increase. The addition of room and board raised the cost from $16,480 to $21,030 respectively.

In 2012/1013 tax benefits and grants covered 36% of total charges, 26% were covered from student loans, 38% of the costs were covered from other sources. Over the past decade their out-of-pocket costs raised $1,330 and loans covered an additional 2% of costs.  The use of federal unsubsidized loans increased while the use of private loans decreased.

The cost of public four-year public colleges increased dramatically over the past decade. With 40% of students enrolling in public four-year colleges the costs of tuition and fees raised $5,210 in 2002/2003 to $8,660 in 2012/2013 marking a 66% increase. Room and board costs increased 45% over this period. The report indicated that public four-year colleges had the largest increase in cost when compared to 2-year colleges, private colleges and for-profit colleges.  

The study summarizes its findings by indicating that parents and students are relying more heavily on grant aid and tax benefits to pay for most of their college expenses when compared to a decade ago.  The use of loans increased slightly but was not the main source of funding. By understanding the trends it helps to make adjustments to ensure that college education is within affordable reach for most students. It is this access to higher education and the use of that knowledge in beneficial ways that help society create new knowledge for advancement and growth. 

You may Read the Report HERE