What is the importance of the GMAT?

You might get asked the question, why exactly are you writing the GMAT?

You need to understand the importance and scale of examinations such as the Graduate Management Admissions Test. The GMAT influences and is the beginning of a shift in career.

The key question is, Will the exam help me get into a university of my choice? Career growth is on the minds of every single student, and the GMAT is definitely a step in the right direction. A good score can not only help you get into a prestigious university but also help you study with a scholarship. A degree from a top-notch university can enhance your chances for a better job. Over 8000 universities accept the GMAT score. Moreover, the score is also reviewed by a few workplaces across the globe- having a GMAT score on your resume can be great value addition. The logical, analytical and time-management skills required to clear the examination are a test of how a student would perform in the real world.

So why exactly do people take the GMAT?

  1. MBA (Masters in Business Administration) Applications: The GMAT is the global standard for MBA schools. Business administration courses have subjects such as Financial Management, Supply Chain Management, Marketing, Human Resource Management and much more. These courses are logic-based and require students to have a high level of logical thinking. The GMAT is the exam that provides you with the first peek into critical and logical thinking and analytical-active reading.

  2. Job applications: A lot of companies across the globe look for candidates that are quick on their feet. Very few competitive exams provide companies with the assessment required for a strong and logical candidate. The GMAT is a sneak into the world of logic and time and process management. Not only do you have to be thorough with your job process, but you should also be accurate and rapid with your thinking.

The article is split into a few subsections:

  1. Criticality of the GMAT exam for MBA admissions
  2. GMAT score and MBA applications
  3. Beyond the GMAT
  4. GRE vs GMAT


Most MBA decisions are made using a GMAT score

The GMAT is the single most important exam that is administered across the globe and forms a crucial parameter to assess a student’s credentials for admission. A few key areas in which the GMAT helps:

  1. Inculcates special skills and knowledge- Data analysis and inferential skills, and thinking on your feet. The variety of questions.

  2. Improves logical thinking- Data analysis, as mentioned in point one, sometimes boils down to understanding statements written in questions really quickly. This means that your comprehension of a given problem has to be rapid, which is a test on the GMAT. The time bound and adaptive nature of the GMAT demands that you hone and shape your skills.

  3. Gives you a chance at securing a higher salary- a well known fact. MBAs from top universities add a heavyweight to your resume to the extent where your salary immediately goes up 3-4 times in some cases. This salary gap is evident when you stand out amongst your friends.

  4. Improves your communication skills and therefore, enhances your confidence- Picking up your English skills enables you to present yourself as a better speaker, with more accuracy in lingual structure.

What does the examination test you on?

  1. Logical, analytical and quantitative skills.
  2. Thought process under high pressure. This high-pressure scenario can be seen in companies, in which you would need to solve real-world issues at a rapid pace.
  3. Ability to manage classroom pressure in the university. Classroom pressure in management schools can be very high and this pressure can get to students. The number of assignments that needs to be submitted is quite a bit.

Business schools use the GMAT as one of the criteria to assess a candidate. Putting yourself at an advantage will be a good GMAT score. Evaluators use the score as an indicator to judge how capable a student is of handling certain scenarios. Scenarios that are tough to combat require that you think on your feet- A CORE test on the examination.

What are the other advantages that the GMAT offers?

  1. As per researches conducted, the GMAT as an examination has been a proven standard of testing. Graduate programs use it as a yardstick to compare students. Students who undertake the GMAT are evaluated on a common testing platform of high quality.
  2. The test can be undertaken at any point in time, and the GMAC ensures that the test is taken in conditions that are state of the art. The testing centers and the staff are both required to be top notch. Infact, if a student finds any fault with either of the above parameters, he or she can approach the GMAC and complain.
  3. A GMAT score can indirectly lead to a really good salary, and offers a major advantage. Getting into prestigious universities, such as Harvard, or Stanford, can put you on a pedestal and therefore increase your salary per annum. Gradually, the salary gap between people who graduate from top universities and the others widens to an extent where the difference can be a few 100,000$!

The GMAT score psychology affects the way a person conducts himself or herself. The entire gamut of the examination and the learning process are both hectic and designed to be rigorous. If the process of studying is conducted in a manner that is accurate and as per schedule, a student will definitely improve different facets of his or her personality. We are sure you want to take the GMAT after reading this section- there is no disadvantage. The positive aspects of the GMAT are massive compared to the negative.


From whatever is written above, we are sure that you are clear about the importance of MBA applications. Remember that the GMAT score is not the only thing in your application, and a lot of other factors come into the admissions picture- interviews, essays, transcripts, degrees, communication skills and more. Although the GMAT is one of the heavyweights in your application process, do not consider it as the only factor.

The way in which your application is processed is that all the factors are taken into consideration by the admissions committee. So, apart from the GMAT, work on yourself and do not forget to put in your effort into all the parts of your application. While preparing for the examination, you will also be able to write better essays, prepare for your interviews and gauge where you stand with respect to your application. The grammatical, logical and lingual improvement will reflect in your application.


As we have already mentioned, the GMAT is an assessment of how quickly your cognitive process works, your logical ability, mettle, focus and much more. Essentially, the GMAC is asking you a simple question- Can you handle pressure-cooker scenarios well? Or will you succumb?

Traits mentioned above are not learnt in any school, and can only be developed through reading and other life experiences. Handling a business requires skills that demand quick-thinking. Deriving conclusions from different data and inferring from those data sets are absolutely essential in a business manager or a leader.

What do companies say- the GMAT scene?

Students who take the GMAT automatically improve their English, and therefore their communication skills. Along with this, students are forced to revisit their quantitative skill sets that are often left behind during their younger days. The strength of the student’s technical thinking is revealed through this section.

Companies value a good GMAT score on a resume. Companies such as Goldman Sachs, EY etc do ask their candidates whether they have administered the GMAT and ask them to report their scores.

GMAT and the GRE- Why the GMAT?

The student who wants to get into an MBA program is generally confused about which examination to give- So why the GMAT?

The GMAT has a much wider scope and the importance of understanding its impact is up to the individual- we have tried to cover everything about the importance of the GMAT. Do consider the learning paradigm that you are going to enter, the GMAT is a life-changing experience and the rigour can be daunting. If you are mettlesome, you will love the process. Those who enjoy the process of the GMAT, do not need to worry about the goal! They will sail through with flying colours- ARE YOU READY?

All the best with your GMAT, from us, at Jamboree

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