Implications of the GMAT and GRE Changes

Both the GMAT and the GRE recently changed their formats. TopMBA.com looks at the implications of these test changes.

The revised General Record Examinations (GRE) was launched last August, and with the new Graduate Management Admission Test’s (GMAT) Integrated Reasoning (IR) section, debate over which is the ‘better’ test for business school admission intensifies.

Changes to both the GMAT and GRE were made with the view to provide a more reliable measure of a test-taker’s qualitative and quantitative abilities during business school and beyond.

Reflecting real-life business scenarios

The Educational Testing Service (ETS), creators of the GRE, has introduced new questions to measure the type of thinking and skills needed in real-world business management.

Sample questions of the revised test present scenarios related to salaries, policy making, and IT, in order to measure verbal, analytical and quantitative reasoning skills. This is among other changes that include test-score scales, design and format.

Sharon Lawler-Sudell, brand director of the GRE program at the ETS says, “Test content is more closely aligned with the verbal reasoning, quantitative reasoning, critical thinking and analytical writing skills students need to succeed in graduate or business school.”

The GMAT IR section has a similar objective, but specifically measures a test taker’s ability to extract and analyze complex data.

Test takers are expected to answer 12 questions within four sections – graphic interpretation, two-part analysis, table analysis, and multi-score reasoning.

Unlike the exam’s other sections (verbal, quantitative and analytical writing), which are delivered through a computer adaptive testing algorithm, IR questions are fixed.

A reliable predictor

Although the aim of the test reforms are clear – to assess the skills needed in business management – there are mixed feelings as to whether the changes will provide an accurate and reliable reflection of a candidate’s ability.

Brian Galvin, director of academic programs at the test prep organization Veritas Prep, believes the GMAT IR section provides an accurate measure, especially compared with the other sections of the GMAT.

“The GMAT is an extremely well-written reasoning exam. But if it has limitations, then one might be that the skills at least seem abstract to students – when will they use geometry as a brand manager? The problem solving skills from geometry are extremely valid, but the content may be a bit out of MBA scope,” he states.

However, he adds: “The IR section examines the same type of problem solving and critical reasoning skills but through the lens of mini businesses. It’s quite reflective of what you will do as an MBA student and graduate.”

John Roeder, director of admissions Vanderbilt University Owen Graduate School of Management, agrees: “The ability to interpret multiple sources of quantitative and qualitative data, then draw conclusions, is a skill we want to screen for.

"These are the synthesizing abilities that make or break an executive’s success in the business world. With the new IR, GMAC is giving us that extra piece of information that MBA admissions professionals have been asking for.”

Others have expressed similar optimism over the new GRE in providing an accurate predictor of a candidate’s ability: “ETS has done a lot of analysis and they believe that its scores are as good as, or better than GMAT at predicating business school success,” says Andrew Mitchell, director of pre-business programs at Kaplan Test Prep.

However, some admission directors remain unsure. Anne Sandoe director of MBA programs at Leeds School of Business at CU-Boulder says it is too early to tell whether the changes will provide an accurate measure of a candidate’s business potential.

GMAT or GRE?

While a growing number of business schools have accepted the GRE for MBA admissions, experts generally advise those who are certain of a career in business, to take the GMAT. Those interested in post-graduate education but are not entirely sure about specializing in business management are advised to go for the GRE.

“If you are only applying to business school, it is still safer to take the GMAT,” says Mitchell of Kaplan Test Prep. The GMAT is accepted at almost every business school in the world and a high score will mean you’ll be a strong candidate for the majority of business schools across the globe.

“However, if you’re interested in other areas as well as business, such as engineering, then the GRE is a good alternative,” he adds.
Tami Fassinger, director of admissions at Vanderbilt Owen Graduate School of Management, agrees, “GMAT scores send the message that the student is sure about an MBA. It is the tried predictor of core performance in MBA programs, and is especially key to us at our school,” she says.

However she adds that the school is supportive of those who want to submit a GRE score. She says in cases where a prospective business school student has obtained a high GRE and has gone on to obtain another graduate degree, or gained substantial work experience, the school is likely to accept the GRE score.

“With these candidates, we will explore and ascertain whether their career plans are solid,” she says.

Changes may create a sense of concern among those who will be taking either one of the reformed exams. Though the best way to overcome these initial fears is to plan and prepare.