The Role of the GMAT

Why does the dreaded GMAT play the role it does in the MBA arena? This article gives you a glimpse of the reasons why the GMAT is one of the world's most sought-after courses.

The Graduate Management Admissions Test (GMAT) is an integral part of the admissions criteria for the majority of business schools, and whilst a stark case study in competition for applicants to full-time programs, presents a singular challenge for a lot of Executive MBA candidates. Typically such students are applying to business school with far greater professional experience, and current responsibility, it seems strange to them to insist on a four hour test with a bunch of multiple choice questions on algebra and sentence correction.

Nevertheless the 'M' of an MBA refers to a Masters program that will require an academic capacity to perform in the classroom. Given the analytical nature of an Executive MBA program, the Admissions Committee is interested in assessing your current quantitative skills. In fact, ETS data has shown that GMAT scores are consistently good, though imperfect, predictors of academic success in the first half of an MBA program. GMAT scores are also used by Admissions Committees as a useful guide in comparing the credentials of candidates from widely varying backgrounds.

Standardized = Predictable

The exam itself measures general verbal, mathematical, and analytical writing skills. It does not test business competence nor specific subject knowledge. The GMAT is a standardized test. Standardized tests, by definition, are predictable. Knowing the format and structure of the exam and applying certain strategies to address them can significantly increase score levels. In short, targeted preparation is the key to success in the GMAT.

The business schools are trying to recruit the strongest group of high potential participants possible. They would be very disappointed to have to turn down a talented professional whose experience and proven achievement would greatly enrich the exchange of ideas in the program. It is interesting to note therefore that schools talk about the GMAT as being a mandatory component of the admissions process, where students are encouraged to achieve a 'good score' - this will often mean a minimum score of 600 for native English speakers. All the schools, no matter how competitive, will have a range of acceptable GMAT scores. If you take the test more than once, the Admissions Committee typically considers your best score, and does not average multiple test scores. The approach therefore is a little more conciliatory than the competitive process for full-time programs, and well worth discussing with the schools to which you are applying.

Scoring on the GMAT

You will receive four scores on the GMAT:

An overall score, ranging from 200 to 800.

- A math percentile, comparing you to other test takers.

- A verbal percentile, comparing you to other test takers.

- A score for the Analytical Writing Assessment, ranging from 0 to 6.

Your GMATTM score is valid for five years.

Percentile Rank

Each of the aforementioned scores are accompanied by a percentile rank. The percentile rank highlights what proportion of test takers scored lower than you on the test. The higher the percentile rank, the better you did. For example, if you received a percentile rank of 56, you did better than 56 percent of test takers. This number tells business schools exactly where you fell with respect to other candidates who took the GMAT.

The Essay

Each essay is given a separate grade on a 0-6 scale by two different graders - a human and a computer named the 'e-rater.' These grades are assigned holistically, taking into account all aspects of content, writing style, and grammar. If the two grades for an essay agree, that score will be assigned. If the two scores are markedly different, then a third scorer, a person, will read the essay to determine its grade. In addition, business schools may receive copies of your typewritten essays.

It is interesting to compare the emphasis placed on the GMAT for application to an Executive MBA versus a full-time program. For many thousands of candidates each year, the test aptly illustrates the intensity of the admissions process at the top business schools. This three and a half hour standardized exam is a required element in your dossier.

Though for full-time programs a strong score on the GMAT will not by itself get you in, without a strong score your chances are greatly reduced. A few statistics provide a vivid picture of the competition. This year, close to 230,000 people will sit the exam. Fewer than 15,000 will score high enough to match or exceed the average GMAT scores for candidates accepted to the full-time programs at Columbia, Duke or IESE, and only a stunning 5,000 will match or exceed the average at Stanford. More broadly, the top programs benchmark scores placing candidates in the top 10 per cent of the test-taking pool.

But as the scores below* would suggest, GMAT averages for Executive MBAs remain high, but far more accessible than their full-time counterparts.

Institution                 Average GMATTM (Full Time)          Average GMATTM (ExecMBA)

Columbia                     709                                                      650

Emory                          676                                                      590

ESSEC                        668                                                      610

Georgetown                 661                                                      620

IMD                            670                                                      560

*Business Week (2006 data)

GMAT alternatives

While the majority of business schools require their MBA applicants to submit GMAT scores alongside the rest of their applications, there are some alternatives to the exam.

Probably the biggest contender to the GMAT’s crown as the main admissions test for MBA applications, the Graduate Record Examination, or GRE for short is gradually becoming accepted by more MBA programs around the world.

While the GRE is designed to be used for admissions to all graduate programs, with the exception of a handful of subject specific GRE exams, many business schools value it as a suitable admissions test for their MBA programs.

Many schools also offer their own admissions tests. Although these usually follow a similar format to the GMAT and GRE, they are often designed to test applicant suitability for a specific MBA program.
In India, the Indian Institutes of Management (IIMs) offer their own standardized admission test, the Common Admissions Test, or CAT for short. Although accepted by all six IIMs, many other business schools in the country also accept CAT scores for their MBA applications, and there are rumors of the test soon being licensed outside of India too.

Currently, the GMAT is the most widely accepted MBA admissions exam. While there are alternatives, future applicants should always ensure which tests are accepted by their preferred schools before taking an exam by asking the school themselves or conducting online research.

The GMATTM is an opportunity

If you're wondering how to juggle your time between preparing for the tests, writing the essays, and following up on your letters of recommendation you may wonder where to find the time for preparing the GMATTM. Don't forget that this is one area of your dossier that you can still improve, so you should prepare well for test day. Look at the GMATTM as an opportunity to make your application stand out.

Obviously, solid preparation is key. Unless you are confident of a great score, buy yourself a book or download software that offers the chance to take at least one or two full-length tests, just to make sure that there are no surprises on test day.

Good Luck!

* GMAT™ is a registered trademark of the Graduate Management Admission CouncilTM. The Graduate Management Admission CouncilTM does not endorse, nor is it affiliated in any way with the owner or any content of this web site.