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Education
Many believe MBA still quite valuable

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A national survey of 654 college graduates bound for business school shows that despite news reports of MBA graduates having difficulty finding jobs in the current economy many believe the degree has become increasingly important in today's working world. Kaplan Inc., which conducted the survey between June 13 and 19, believes the students' responses reflect optimism that the economy will rebound by the time they have completed business school. The study's margin of error was plus or minus 3.9 percent. Of those polled:

• 55 percent believe the MBA degree is more valuable today than it was 20 years ago.
   
• 49 percent said they based their decision on which business school to apply to by looking at rankings.
   
• 22 percent were concerned about the business school's location.
   
• 8 percent were influenced by alumni.
   
• 7 percent said the backgrounds of faculty were a significant factor.
   

Gauging interest in the MBA degree was one focus of the survey.The data also revealed that 43 percent of the students thought the recent $1.4 billion Wall Street settlement did not go far enough in punishing investment firms and protecting investors. Additionally, 30 percent felt business schools should bear some of the responsibility for the recent corporate scandals. In all, 51 percent said business schools were not culpable.

When asked which of the corporate scandals had the biggest impact, 89 percent said problems at Enron Corp. have brought about changes that should influence how business is done worldwide. Survey participants also said Microsoft founder Bill Gates has had more impact on business and society in recent years than any other US executive. He was selected by 62 percent of the students surveyed.

DIANE E. LEWIS

Executives
Compensation index shows large decline

Cuts in cash bonuses coupled with the stagnant economy's negative impact on revenues led to a 22.6 percent decrease in total cash compensation to the highest paid executives, according to a report by the Economic Research Institute and CareerJournal.com. The two organizations said the quarterly executive compensation index they compile dropped to 131.6 percent this year, down from 170.1 last year. The decline marked the largest drop in the index since the measurement was established in 1997. At that time, the index stood at 100, the report said.

When the researchers looked at cash bonuses, they found that the biggest drop in executive bonuses occurred at Apple Computer, according to proxy statements. There, a $2.26 million bonus was allocated to the most highly compensated executive, down from $43.5 million in 2001. ''Corporate management is beginning to see the effect of stockholder interest, particularly by activist retirement funds,'' said ERI director David Thomsen.

Since 1997, total compensation for executives has grown 31.6 percent compared to a corporate revenue growth rate of 61.3 percent, the report said. The index monitors total salaries plus bonuses for the highest paid executives at 45 top US companies.

DIANE E. LEWIS

Workplace
Survey finds many exhausted at work

A lot of workers are suffering from burnout.

Such are the findings of a survey by The Discovery Group, a Sharon management consulting firm. The company, which based its findings, on information gleaned from 59 companies with a total of 50,000 employees, found that 40 percent feel physically and mentally exhausted at work.

''Exhaustion results in a lack of enthusiasm, tardiness, daydreaming, and a drop in the productivity and quality of the work,'' said workplace psychologist Bruce Katcher, president of the management consultancy. Katcher maintains that employee burnout can be reduced through job enrichment, job rotation, and programs that encourage wellness.

Katcher attributes burnout to a variety of factors, including downsizing. In June, the unemployment rate soared to 6.4 percent, the highest level in years. Last week, the federal government reported that the country lost 56,000 manufacturing jobs. Since July 2000, 2.6 million industrial jobs have disappeared.

Katcher said the workers who remain at work after layoffs are often required to do even more with few incentives. ''Organizations have slashed their training and professional budgets,'' he said. ''As a result, employees are not learning and developing. Since most organizations are not growing there are also fewer opportunities for employees to learn new skills. Over time, many become bored with their jobs.''

As companies become streamlined, middle managers are targeted for elimination, resulting in fewer opportunities for promotion for frontline staff. Feeling stuck, workers are more apt to experience burnout and dissatisfaction on the job, Katcher noted.

Katcher recommends that companies offer personal development strategies for each worker. He also suggests that companies refrain from hiring new staff when those already on the job could be trained to take on new or more challenging duties. He added that companies should also work closely with human resources professionals to provide counseling for workers who are depressed. Additionally, he said, the opportunity to do a variety of jobs over the course of the year could galvanize workers. The approach, called job rotations, works like this: Workers trained to do one job are given the opportunity to work in another position for several months while someone else does his or her work.

Lastly, said Katcher, employers should not hesitate to thank workers, and communicate openly and honestly about the companies goals and plans.

DIANE E. LEWIS

Study
Some underlings don't always stick to role

Just about anybody can learn to be a boss, but some people can't stand being a member of the rank and file.

So says a new study slated for publication in the October 2003 edition of the Journal of Personality. The study, by Judith A. Hall, a professor of psychology, and Marianne Schmid Mast, a professor at the University of Zurich in Switzerland, reviewed the responses of 138 undergraduates who were paired with another person of the same gender. The roles of boss and subordinate were allocated randomly by the researchers. In the assigned roles of owner of an art gallery and his or her assistant, each chose a painting to exhibit at a mock art gallery. Each was required to convince the other that his or her painting would be more likely to attract people to the art gallery.

''Researchers found that those who were assigned to the role of subordinate, but initially wanted to be in a leadership position, attempted to rise up in the ranks and behaved more aggressively,'' said the study. ''[They insisted] that their opinions be interpreted and implemented. Those assigned to the personas of art gallery owners behaved the same regardless of whether they wanted the position or not.''

The researchers concluded that people who aspire to a higher status may become aggressive and behave more dominantly if they do not get their wished-for promotion. ''They could easily be involved in power struggles and that might burden office relationships,'' said Schmid Mast.

DIANE E. LEWIS

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