I think you miss a big point by concluding that Costco is just looking for a way to save on MBA wages. I see the internal recruitment as a way of ensuring that management is comprised of individuals who deeply understand the mechanics of the company. Someone like that, who then goes on and learns a number analytic techniques/philosophies as an MBA is more likely to apply them with insight to where they break down vs reality.
Personally, I'd be terrified if a new engineering graduate who might have excelled on designing structures in a CAD program, went directly into leading a bridge building project. But, I think that's the track that some MBA's follow - especially from well regarded business schools.
I agree with you. I didn't state it out right, but you are definitely correct. Most MBAs (something like 60+% have substantial business experience prior to applying to B-School. The remaining 40% have substantial experience in unrelated fields to business like engineering. (assuming we are referring to top ranked schools).
I'm not sure whether they save or not on their MBAs, but they likely do.
> I see the internal recruitment as a way of ensuring that management is comprised of individuals who deeply understand the mechanics of the company. Someone like that, who then goes on and learns a number analytic techniques/philosophies as an MBA is more likely to apply them with insight to where they break down vs reality.<
People with direct, on the floor training are definitely valuable to an organization. As are people with outside or diversified experience.
My overall point in the first post was to state that the title was basically wrong and that Costco does value MBAs to a high level. That is proven since they pay for their educations.
Personally, I'd be terrified if a new engineering graduate who might have excelled on designing structures in a CAD program, went directly into leading a bridge building project. But, I think that's the track that some MBA's follow - especially from well regarded business schools.