Manhattan Review InFocus BLOG

Another recent study conducted by GMAC examined the accuracy or validity of the GMAT as an indicator of success in PhD programs in management.

The need for such a study arises from the increased pressure to know whether or not standardized tests are useful indicators of success. Tests, such as the SAT, have recently been under a great deal of scrutiny. Accusations have been made by parents and the media that the SAT in particular privileges certain groups of students. The GMAT, not unlike other standardized tests, has recently been under pressure to demonstrate whether it is indeed a factor that should be granted so much weight in graduate management educational admissions decisions.

The recent study based on data provided by US PhD programs and PhD students themselves indicates overall that the GMAT is a useful predictor of first-year success in PhD programs. Data even suggests a greater correlation between first-year success and GMAT results than first-year success and undergraduate grade point average. The study of the performance of non-native English speakers on the GMAT, in particular, the Verbal and Writing Assessment sections of the test, display a clear association between scores and success in their programs.

These results are helpful in acknowledging the usefulness of the GMAT as an indicator of success to admissions committees. However, the results are not conclusive. Further inquiries into correlations between success and GMAT are necessary. As the GMAC maintains, these results in the study are relevant only to PhD students in management programs, a unique and small subgroup of GMAT test takers.

The above discussions are based on the GMAC research report written by Kara O. Siegert, “Predicting Success in Graduate Management Doctoral Programs,” as of 12 July 2007.

A recent study conducted by the GMAC suggests that MBA graduates are largely satisfied with their decision to attain an MBA. The study is based on factors such as increased long-term income and financial stability, connections gained as a result of their MBA, increased confidence, and respect accorded to them after their MBA. The study chooses not to focus on immediate financial rewards as these, though motivating factors in seeking an MBA, are not necessarily representative of overall satisfaction.

The study is based on recipients of full, executive, and part-time MBAs (online and distance MBAs etc. make up only 1% of those surveyed). A majority of those surveyed (58%) were in full-time MBA programs.

Especially interesting are the high satisfaction ratings among MBAs who desired to change or switch careers following their programs. Among these MBA recipients, very high rates of satisfaction are expressed in the areas of post-MBA marketability as well as post-MBA long-term financial stability.

MBAs were also surveyed as to the degree to which they feel satisfied in their skill development as a result of their MBA program. Skills such as strategic thinking and technological skills among others were included in the survey. In terms of skill improvement, it was again evident that those interested in career change were more satisfied. However, those MBAs who pursued the degree with the intention of enhancing their pre-MBA career expressed lower degree of satisfaction in their skill improvement.

This survey did not take into account additional demographic factors (location, ethnicity, nationality and race). Such factors too might have resulted in interesting findings.

The above discussions are based on GMAC Research Report “Satisfied MBAs: Career Switchers and Career Enhancers from Around the World,” written by Sabeen Sheikh & Kara Siegert on 7 June 2007.

Different trends are underway among international applicants, who make up a large portion of applicant pools and student bodies.

Overall, two out of every three applicants to PhD programs in Business are international students. The impressive breadth and diversity of the applicant pool increases the difficulty of acceptance into these highly competitive programs. In 2007, the average acceptance rate to doctoral business programs was 13%, making these programs the most difficult business management program to get into.

However, the PhD programs are the only exception from all the graduate management programs in terms of application volumes in 2007 – they have not experienced the same strong growth as witnessed by all other programs. In short, the percentage of PhD applicants among all business management program applicants is decreasing. This can be evidenced by the marked increase in applications to part-time MBA, EMBA and flexible MBA programs which are particularly attractive to foreign nationals.

Women are in demand in graduate management educational programs of all kinds.

Let us take a look at the 2007 statistics released by the GMAC in reference to gender representation. In part-time MBA programs, women represent 37% of the total. In full-time MBA programs, just 27% of MBA students are women. In EMBA programs, a meager 22% of students are women. Though women represent a larger percentage of the student body in non-MBA management education including undergraduate and master’s programs, it is still the case that in all categories women represent a minority of applicants.

Though overall far fewer women than men pursue Graduate Management Education, numbers of women applicants are on the rise. In 2007, applications from women increased overall. These increases are in large part due to greater recruitment efforts. 56% of full-time MBA and 78% of EMBA programs are actively recruiting among women. Such recruitment seems to have a direct correlation to increases in the volume of women applicants.

Here is part 2 of a chapter from our new book, Negotiation and Decision Making. Our Turbocharge Your Career series has seven more books planned for publication. All of the eight books will be available on Amazon.com and in Barnes and Noble stores across the US. We will also host this class online or in-person at selected locations around the world. Email us at career@manhattanreview.com for more details.

5.1.5 Solving Their Problem

When you are researching, you will have to find out ways to solve the other side’s problem as well as your own.

Those include their values and the outcomes that they are looking for. Also discover some negatives in their business past.

1. All of those bits of information require asking them open-ended questions in the negotiation process. Ask things like “how will this help you” and “tell me more about that”.

Instead of getting an answer and moving on, keep asking to make sure you fully understand. That technique will also create a positive environment and show that you want to listen to their problems and needs.

2. In real life, often times there are no absolute distributive or integrative negotiations. Rather, they are a combination with varying degrees of each type. So you may always be able to find some ways to “enlarge the pie”:

- Gather as much information as possible
- Identify items of value
- Do not become competitive or force compromise. Compromising detracts from both sides
- Focus on the desired outcome for both sides

5.1.6 Let the Other Person Win

Identify Common Issues – Increase communication by showing how you are similar to the other person. It will increase trust and build a relationship

Maintain the Relationship – When something negative comes up, associate it with the terms of the deal and not the other person.

Show how the deal helps them – Be ready to prove that your deal will help their business. Be able to show them and not just tell them.

5.1.7 How to Derive Those Numbers

Many high-ranking business professionals quantify information and develop precise formulas to determine outcomes. If the other side does this, pay attention to the rationale and the formulas they have developed. Know how the other side reached their conclusions. Their method is likely to stay fixed, but the outcomes and numbers are not necessarily going to stay the same because they are more easily changed.

Rules to follow when trying to get at the final numbers:

- Know the guidelines, the goals and who is involved with the deal
- Strive for communication – Ask questions about items you understand
- Question numbers and assumptions – do not accept everything they give you
- Establish your uniqueness – Show why your product is better than the cheaper product and how it will help the other’s bottom line and business overall
- Focus on risks and benefits – Do not threaten or put pressure on the other side, but remind them of the risks of going with a competitor tactfully and through questioning rather than direct statements

5.1.8 Achieving Results

Several methods help to achieve the results you desire AND maintain or improve your relationship with the other party.

Find Objective Methods of Determining the Benefits of Solutions.
This will allow both parties to trust and value the terms to be agreed upon.

Concentrate on What You Want to Achieve, Not Where You Stand on an Issue.
This is a means of opening your mind to other options and modes of achievement. These would be less likely to automatically preclude the success of the other party.

Focus on Issues, Not Personality.
Avoid personal attacks. Your interest is in improving a relationship and achieving your desired results, not frustrating or offending the other party.