Graduate management admission test gmat

What Is the Graduate Management Admission Test (GMAT)?

The Graduate Management Admission Test (GMAT) is a Standardized Test widely used as an admissions criterion for Graduate Programs in business, particularly Master of Business Administration (MBA) programs worldwide. Administered by the Graduate Management Admission Council (GMAC), the GMAT is designed to assess certain analytical, writing, quantitative, verbal, and reading skills critical for success in a Business School curriculum. It falls under the broader category of Higher Education Admissions tools, aiming to provide a consistent measure of a candidate's readiness for the academic rigor of graduate management education. The GMAT helps admissions committees evaluate applicants' potential to thrive in a demanding academic environment.

History and Origin

The origins of the GMAT date back to 1953 when representatives from leading U.S. business schools collaborated with the Educational Testing Service (ETS) to develop a standardized assessment. This initial test was known as the Admission Test For Graduate Study in Business (ATGSB). The goal was to establish a more transparent and uniform Admissions Process for prospective graduate business students, offering universities reliable insight into applicants' skills. The ATGSB was designed to measure skills such as Quantitative Reasoning and verbal abilities²³.

After several refinements, the ATGSB was renamed the Graduate Management Admission Test (GMAT) in 1976. Significant adjustments followed, including the addition of the Analytical Writing Assessment section in 1994 and the introduction of computer-adaptive testing in 1997, which significantly broadened access to the exam²². The GMAT continues to evolve, with the most recent version, the GMAT Focus Edition, streamlined to assess core business school skills more efficiently²¹. The exam has served as a cornerstone of graduate business education admissions for decades, trusted by thousands of programs globally to predict success in the first year of graduate management education¹⁹, ²⁰.

Key Takeaways

• The GMAT is a standardized exam used by business schools to evaluate applicants for graduate management programs, especially MBAs.
• It assesses Quantitative Skills, Verbal Reasoning, Analytical Skills, and Critical Thinking essential for business studies.
• The exam's scores are used by over 7,700 programs and 2,400 business schools worldwide as part of their Application Process.¹⁸
• GMAT scores are generally considered valid for five years from the test date.¹⁷
• While a high GMAT score can strengthen an application, admissions committees often employ a holistic review, considering work experience, essays, and academic transcripts alongside the score.

Interpreting the GMAT

The GMAT is scored on a scale from 205 to 805, with scores always ending in a 5. This total score is derived from the Verbal Reasoning, Quantitative Reasoning, and Data Insights sections, with each contributing equally to the overall score. In addition to the total score, candidates receive individual section scores and a score for the Analytical Writing Assessment (AWA) if applicable¹⁶.

A Score Report provides not only the numerical scores but also percentile rankings, indicating how a test taker performed relative to others. For instance, a 700 GMAT score might place a candidate in a very high percentile, signifying strong performance compared to the general test-taking population. Business schools often publish the median or average GMAT scores of their admitted students, which can serve as a benchmark for prospective applicants. For example, Harvard Business School reports an average GMAT score around 740 for its admitted MBA class, reflecting its highly competitive nature¹⁴, ¹⁵. A strong GMAT score is an indicator of academic readiness and the capacity to engage with the analytical demands of a business curriculum¹³.

Hypothetical Example

Consider Jane, an aspiring financial analyst with a few years of work experience who wants to pursue an MBA to advance her career. She researches several business schools and finds that most require a GMAT score as part of their application. Jane decides to take the GMAT and prepares for several months, focusing on improving her Data Analysis and quantitative skills, which are crucial for her target programs in finance.

On test day, Jane performs well, receiving a total GMAT score of 720. This score, combined with her strong work experience and undergraduate transcript, significantly strengthens her applications. When she submits her materials, the admissions committees at her target schools view her GMAT score as evidence of her ability to handle the rigorous quantitative coursework and Academic Performance expected in their MBA programs. Her GMAT score complements the other aspects of her profile, making her a competitive candidate for admission.

Practical Applications

The GMAT serves several practical applications within the realm of graduate management education and career advancement:

• MBA Admissions: The primary use of the GMAT is as a standardized component of the Admissions Process for MBA and other business master's programs. It provides a common metric for evaluating candidates from diverse academic and professional backgrounds¹². For instance, Harvard Business School requires applicants to submit a valid GMAT or GRE score, using it as an indicator of academic readiness¹¹.
• Scholarship and Fellowship Opportunities: A competitive GMAT score can enhance an applicant's profile for merit-based scholarships and financial aid offered by business schools.
• Career Screening: In certain industries, particularly Investment Banking and consulting, employers may consider GMAT scores as a screening tool, especially for entry-level positions or programs that recruit directly from MBA programs.
• Self-Assessment: For prospective students, preparing for the GMAT can serve as a self-assessment of their strengths and weaknesses in core academic areas relevant to business studies. It helps individuals identify areas where they may need to bolster their skills before entering a demanding graduate program.

Limitations and Criticisms

Despite its widespread use, the GMAT faces several limitations and criticisms:

• Predictive Validity Debates: While numerous studies by GMAC and other bodies claim the GMAT predicts Academic Performance in the first year of graduate business education, some researchers and institutions question its long-term predictive power for career success⁹, ¹⁰. Some studies suggest that factors like Undergraduate GPA and work experience can be equally, if not more, indicative of future success, particularly for experienced professionals⁸.
• Test-Optional Movement: A growing number of MBA programs have adopted test-optional policies or offer test waivers, especially accelerated by the COVID-19 pandemic. This reflects a shift towards more holistic application reviews, where a strong academic record, significant work experience, and professional certifications might allow applicants to bypass the GMAT requirement⁶, ⁷. Some schools believe that strong coursework and professional experience can sufficiently demonstrate a candidate's readiness without a standardized test.
• Cost and Accessibility: The GMAT exam fee, along with associated preparation costs, can be a financial barrier for some prospective students. While online versions and fee waivers exist, accessibility remains a concern for diverse populations.
• Bias Concerns: Like many standardized tests, the GMAT has faced scrutiny regarding potential biases against certain demographic groups, although GMAC commissions validity studies to address such concerns.⁵

GMAT vs. Graduate Record Examinations (GRE)

The GMAT is often compared directly with the Graduate Record Examinations (GRE), as both are widely accepted standardized tests for graduate school admissions. The primary distinction lies in their historical focus and target audience.

The GMAT was specifically designed for graduate management programs, emphasizing analytical reasoning, quantitative problem-solving, and data interpretation relevant to business contexts. Its structure and question types are tailored to assess skills deemed crucial for success in an MBA or other business-focused master's degree.

In contrast, the GRE General Test is a broader standardized exam traditionally used for admission to a wider array of graduate programs across various disciplines, including humanities, sciences, engineering, and education, in addition to business. While it also assesses verbal reasoning, quantitative reasoning, and analytical writing, the GRE's content may be perceived as less specialized for business. Many business schools now accept both the GMAT and GRE equally, giving applicants flexibility in choosing the test where they feel they can perform most competitively³, ⁴. The decision between taking the GMAT or the GRE often depends on the applicant's strengths and the specific requirements or preferences of their target programs.

FAQs

What skills does the GMAT measure?

The GMAT primarily measures higher-order reasoning skills, including Quantitative Skills, Verbal Reasoning, Data Analysis, and Critical Thinking. These skills are considered essential for navigating the complex curriculum of graduate business programs.

How long are GMAT scores valid?

GMAT scores are valid for five years from the date the exam was taken. This allows applicants a reasonable window to apply to Business School after taking the test.²

Is the GMAT required for all MBA programs?

No, not all MBA programs require the GMAT. While historically a standard requirement, a growing number of Graduate Programs now offer test waivers or have adopted test-optional policies, especially if an applicant demonstrates strong academic aptitude through other means like a high undergraduate GPA or significant professional experience.¹