Why do business schools move away from standardized test scores?

By Dr. Vlad Krotov

For decades, graduate business schools around the world have been using the GRE (Graduate Record Examination) and GMAT (Graduate Management Admission Test) scores as one of the major selection criteria. Today, some business schools are beginning to de-emphasize the importance of GRE and GMAT scores in their admission criteria, recognizing that they might not be the most accurate predictors of success in a graduate business program. Standardized test scores are being used as optional by many graduate business programs, including some of the top ones. 

On the one hand, standardized test scores serve as a simple and reliable criteria for assessing certain skills of aspiring applicants, such as quantitative reasoning and analytical writing skills. On other hand, standardized tests have been plagued with numerous issues when used as the primary selection criteria for business school applicants. Some of the problems are discussed below:  

    • Limited Assessment: GRE and GMAT scores primarily assess quantitative and verbal reasoning skills, along with analytical writing ability. They may not fully capture an applicant’s broader skill set, such as leadership, creativity, communication, and interpersonal skills. These “soft skills” are crucial for success in business and management. It has been observed by many business schools that some applicants with outstanding test scores lack these skills and do not even seem to show a great deal of potential to improve.
    • Test Anxiety: Some students experience test anxiety, which can negatively impact their performance on standardized tests. There are some business schools that worry that requiring standardized test scores may discourage potential applicants from applying. 
    • Bias: It has been argued in research literature that standardized tests can exhibit cultural, socioeconomic, and gender biases that may disadvantage certain groups of applicants. As a result, requiring standardized tests may put certain groups at a disadvantage, creating an unfair admission process. 
    • Reduced Diversity: Relying heavily on standardized tests might inadvertently limit the diversity of the admitted student body. Candidates from non-traditional backgrounds, different industries, or with unique skill sets may not be accurately represented by these tests.
    • Preparation Disparities: Performance on GRE and GMAT can be influenced by the extent of test preparation. Students who can afford to spend time and money on test prep courses or resources might have an advantage, potentially leading to inequities in the admissions process. For example, younger students may have more time on their hands to prepare for these tests in comparison to older, working adults. Thus, this may put busy, experienced executives at a disadvantage when applying to programs that actually have experienced executives as their target market.  
    • Mismatch with Program Goals: For some business programs that focus on specialized fields or non-traditional business disciplines, GRE and GMAT scores might not align well with the specific skills and knowledge required for success in those areas.
    • COVID-19 Disruptions: The COVID-19 pandemic has caused disruptions in test administration, including cancellations and changes to the testing format. This has prompted some schools to temporarily  or permanently waive standardized test requirements.
    • Cheating: While companies administering standardized tests take numerous precautions to protect the integrity of the examination process, some students still manage to cheat on these exams. In the COVID-19 era, many standardized tests were administered online, which exacerbated the issue. Admission professionals and program directors routinely come across applicants with “sky high” test scores who appear to lack basic quantitative and verbal skills. Some graduate business programs choose to interview all the applicants to verify their skills and credentials “in person”. 

Given these challenges, many business schools are reevaluating the role of GRE and GMAT scores in their admissions process and considering more holistic approaches that consider a wider range of factors when evaluating applicants. Some business schools are moving towards more holistic admission approaches, considering factors like work experience, recommendation letters, interviews, and personal statements. Overreliance on GRE/GMAT scores might overshadow these valuable insights into an applicant’s suitability for the program.

While many accredited business schools do require standardized test scores as a part of their admission process, it should be noted that some of the most prominent accreditation agencies for business schools, such as AACSB, do not explicitly require standardized test scores to be used in business school admission. An accredited business school is typically required to have a formal admission process to select applicants who are likely to master the program learning outcomes. Therefore, accreditation agencies emphasize overall education quality rather than specific selection criteria.