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More Testing, Less Logic?

October 22, 2009

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The Graduate Management Admission Test has for years been the dominant standardized test when it comes to getting into M.B.A. programs.

This week, Business Week reported on an interesting trend: Some employers are starting to ask M.B.A. grads for their GMAT scores, using them as one measure of a job candidate's potential. In this tight market, business schools are worried about their graduates' job prospects, so a number of them are now advising -- informally or formally -- some of their students to retake the GMAT in hopes of a higher score. The article, as one would expect for a business publication, focuses on why some businesses are using the GMAT in this way and other employers are not.

What the article doesn't address is an educational issue: The employers who are using the GMAT in this way are doing so in direct violation of the guidelines issued by the test's sponsors. And those sponsors include business schools that are apparently going along with the use of the test scores in this way.

The Graduate Management Admission Council, the association of business schools that runs the GMAT, has never claimed that it is a valid tool for employers. The council says that its research shows the test to have predictive value of first-year grades in an M.B.A. program. The council maintains a list of "inappropriate uses" of the GMAT, including as a requirement for employment.

Based on the Business Week article (and additional reporting by Inside Higher Ed), it appears that there is plenty of inappropriate use going around -- and that the council (which benefits financially when people take the GMAT) isn't objecting.

Business Week quoted officials at the business schools of the University of Texas at Austin and of Virginia as advising some enrolled students with less than stellar GMAT scores to retake the test. And the magazine reported that the University of Notre Dame's business school sent a letter to its entire 2011 graduating M.B.A. class, describing the increased importance of the GMAT, and offering a four-day course for students who wanted to prepare to retake the test.

A spokeswoman for Notre Dame told Inside Higher Ed that the institution didn't believe there was anything wrong with offering the course, and that it consulted with the Graduate Management Admission Council "both in a phone conversation and by e-mail" and never got any indication that there was anything wrong with encouraging students to take the GMAT for use by employers.

Other business schools may be headed in a similar direction.

Scott Shrum, director of admission consulting research at Veritas Prep, said that the high end GMAT test-prep company has received inquiries from three business schools (two of which were not mentioned in the Business Week article) about group rates for test prep for students. He said he couldn't be sure, but thinks that this may relate to the trend of employers looking at scores. Shrum speculated that the issue may be more important for graduates who aren't coming out of the very top programs.

At the very top ranked business schools, he said, "companies assume that everyone there is strong, and don't care about their scores as much. McKinsey or Goldman Sachs is going to hire 20-30 grads from there every year." But he added that at other business schools, "where Goldman may only hand out a few job offers, they'll look more carefully at everything in a student's profile (including the GMAT) to determine who the lucky few will be. That's not a knock on those lower-ranked schools; I think it's just the reality of the situation."

Judy Phair, vice president for communications of GMAC, said that the council has said "numerous times that the GMAT is designed for, and validated for (via numerous validity studies) use as an effective assessment tool in the admissions process. We don't encourage use for other purposes for that reason." Asked whether the council should do anything about business schools helping companies use the test in other ways, she said that "we really can't prevent them from doing that."

Phair said that she did not know who at GMAC had communicated with Notre Dame, but she said that "we would have said that we can't prevent you from doing it, but we have no proof that it does any good." Phair stressed that students own their GMAT scores and have the right to send them where they want. "We couldn't say to Notre Dame, 'No, you can't do that.' "

A frequent criticism of testing entities is that they look the other way at testing misuse, with critics noting that most misuse also contributes to the volume of tests taken. For instance, the College Board regularly says that it opposes the use of any of its tests as the sole criterion for any significant educational decision. But the College Board's PSAT has long been the test used as the sole criterion for semifinalist status for National Merit Scholarships.

There have been a few instances when testing companies have taken tough stands against use of their exams that they view as inappropriate. In 1983, the Educational Testing Service threatened to stop sending its National Teacher Examination to states that forced teachers to achieve certain score levels to continue their jobs. The ETS said that the test wasn't designed for that purpose and made this statement in a public fight with the then-governor of Arkansas, Bill Clinton, and the leader of his education reform efforts, Hillary Clinton.

Robert Schaeffer, public education director of the National Center for Fair and Open Testing, cited the ETS standoff with the Clintons as evidence that "if a test maker has clear evidence that someone is misusing its product, the company can simply refuse to provide test scores until assured that the guidelines will be followed."

Schaeffer questioned how GMAC can say that it believes in standards for its test, but refuses to do anything about violations of those standards.

"Unfortunately, most modern-day test makers now have embraced the rationale of manufacturers of Saturday Night Special handguns -- 'we have no way to control how our products are used -- please pity us,' " he said. "If GMAC wanted to enforce its test-use guidelines, they could easily do so, either by moral suasion or more aggressive means. But there's no money to be made in encouraging fewer people to take the test. This is a perfect example of how much testing has become a business, even when in an allegedly nonprofit form -- the bottom line is all that matters."

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Comments on More Testing, Less Logic?

  • Opportunities Lost
  • Posted by R.J.Williams on October 22, 2009 at 8:45am EDT
  • "Follow the money" was the wisest lead in the Watergate investigations and it is similarly apropos in this circumstance. Instead of the make-believe fight against reality, a productive alternative might be to push toward re-validating the GMAT as an entrance/exit accountability measure to see if all those expensive MBA programs actually produce results. The simplicity of such an approach will of course draw immediate fire from the GMAC clubhouse as clearly beyond the understanding of us non-psychometricians but in the current postsecondary education awakening that is beginning to take hold, common sense is not so easily dismissed. With a little effort and considerable courage we might make a step forward that over time would provide benefits to all the players: test companies will rejoice over their profits minus the stain of questionable ethics; MBA applicants would have a clearer picture of the quality of an institution's program behind the ivy and anecdotes; and employers would have a better measure of what their prospective employee's potential contributions are likely. Opportunity is knocking for anyone who is listening.

  • Artificial flavor
  • Posted by David Eubanks , Dir. Exotic Plumbing on October 22, 2009 at 9:45am EDT
  • Using the GMAT this way is a good example of a monologue problem, where a too-simple assessment begins to substitute for a real assessment. It’s a convenient way to screen candidates, but insidious in that the stand-in becomes accepted as the actual.

  • Mensa uses it, too
  • Posted by Glenn Bogart , consultant on October 22, 2009 at 9:45am EDT
  • A high GMAT score can be used by an individual to qualify for membership in Mensa. This means the GMAT is, perhaps among other things, an IQ test. Maybe employers using the test for employment qualification simply want to know what kind of IQ they're looking at, since grades alone don't necessarily tell that story.

  • Scott, plenty of questions
  • Posted by Russ on October 22, 2009 at 10:00am EDT
  • Poor teaching and weak educational management that have led to outright grade fraud by job candidates. Grade inflation, anyone?

    Only a standardized test gives employers evidence-based evaluation tools. Math is math, contrary to the Kumbaya crowd.

    Example: below-average math skills often leads to financial losses. (Hello, D.C.!)

    Who wants their TIAA-CREF account handled by someone with poor math skills?

  • Posted by Greg on October 22, 2009 at 11:00am EDT
  • HMMMMMM! I smell a bunch of lucrative laswuits in the making. a quick search just using Wiki. And this does not include other recent cases under the ADA and the ADAA.

     

    As such, Title VII of the Civil Rights Act prohibits employment tests (when used as a decisive factor in employment decisions) that are not a "reasonable measure of job performance," regardless of the absence of actual intent to discriminate. Since the aptitude tests involved, and the high school diploma requirement, were broad-based and not directly related to the jobs performed, Duke Power's employee transfer procedure was found by the Court to be in violation of the Act.

    Griggs v. Duke Power Co. also held that the employer had the burden of producing and proving the business necessity of a test. However, in Wards Cove Packing Co. v. Atonio,[3] the Court reduced the employer's burden to only producing evidence of business justification. In 1991, the Civil Rights Act was amended to overturn that portion of the Wards Cove decision.

    David Frum asserts that before Griggs, employers did not have to separate intentional wrongs from unintentional wrongs if they treated all applicants equally by appearances.[2]

    Justice Ginsburg's dissent in Ricci v. DeStefano suggests that the Griggs conclusion — that Congress aimed beyond “disparate treatment”; it targeted “disparate impact” as well, and proscribed not only overt discrimination but also practices that are fair in form, but discriminatory in operation — has been effectively overturned by the Ricci decision.

  • Why Not Use the ETS Major Field Test?
  • Posted by Scott Freehafer , MBA Director at The University of Findlay on October 30, 2009 at 11:15am EDT
  • Interesting article! As someone who teaches both Human Resource Management and Business Ethics, I see several issues including possibly discrimination charges based on disparate impact, using a test for a purpose for which is has not been validated, and, of course, the additional expense for students/revenue for GMAC to take the GMAT again. Of course part of the problem is that there are fewer barriers to entry to the business world than many other professions. Health care and K-12 teaching professions both have liscensure exams, but overall, business does not.

    If businesses are actually interested in learning what Business students know, schools and employers might want to look at the ETS Major Field Test for Business which has both undergraduate and MBA versions available. Of course, this is a test of what a person knows, not a test of what the person can do...I guess this is just one more reason why the selection process is more of an art than a science and why we have probation periods and at-will employment.