Power distance is the extent to which the less powerful members of organizations and institutions accept and expect that power is distributed unequally. This means that people with high GMAT scores are less able to deal with the hierarchy necessary in an organization.
The findings on uncertainty avoidance and safety-first behavior suggest that the GMAT works against entrepreneurial activity. People who do well in business schools are less likely to take the risks to become entrepreneurs. At the very least, business schools have their work cut out for them to change attitudes and behavior to encourage entrepreneurship.
Considering that women achieve as much success as their male counterparts in business, the findings on women suggest that the GMAT has some other biases (such as higher individualism) that also work against female test-takers.
One could argue that the variations in GMAT scores are based on language, education, and cultural differences between nations. But the authors note that Belgium has a higher average GMAT score than the United Kingdom, even though Belgium is not an English-speaking country; and that Finland has the lowest average GMAT score despite its international reputation for outstanding student achievement scores at the secondary level. They insist that the international variations in GMAT scores cannot be explained by normal economic and demographic variables.
Aggarwal, former dean of the University of Akron’s School of Business, says that one reason for the lack of ethical orientation in business and for the lack of success of whistleblower programs may be this bias against ethical awareness engendered by the focus on high GMAT scores among corporate managers and leaders. It may also explain the common refrain from corporate leaders that business-school graduates lack team skills. Another bias promoted by the focus on high GMAT scores, Aggarwal says, is the unwillingness to make decisions that are risky and involve longer horizons.
The need to overcome the biases encouraged by the GMAT has a number of implications. First, to the extent possible, the GMAT should be changed to correct these biases. Second, MBA admissions should specifically look for traits that GMAT under-emphasizes. Third, hiring, HR, and promotion policies in business should include as an important criterion performance in areas such as ethical and long-term decision making.
Or perhaps business schools should start recruiting students with the lowest GMAT scores.