Article

The GMAT as a predictor of MBA performance: Less success than meets the eye

Taylor & Francis
Journal of Education For Business
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Abstract

Consistent with previous research, the authors found that the combined use of undergraduate grade point average and the Graduate Management Admission Test (GMAT) verbal and quantitative sections successfully predicted performance in a master of business administration (MBA) program. However, these measures did not successfully predict the competencies that underlie managerial effectiveness, including communication, teamwork, decision making, leadership initiative, and planning and organizing. These competencies were better predicted, albeit imperfectly, by the analytical writing section of the GMAT. These findings are discussed with regard to the curriculum of MBA programs.

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... The conclusion that the GPA of a student is a predictor of a graduate's success was questioned by Kass, Grandzol, and Bommer (2012). This is the case despite the claim by Howard et al. (2015) that students improved their critical thinking skills the most when students' GPA was higher and that these skills are an important indicator of a student's success in a work environment. ...
... This is the case despite the claim by Howard et al. (2015) that students improved their critical thinking skills the most when students' GPA was higher and that these skills are an important indicator of a student's success in a work environment. Kass et al. (2012) argued that students should instead focus on developing skills that allow them to lead, solve problems, and innovate, as these skills are predicted as being most important in a managerial capacity. It does appear, however, that all of these skill sets are important for student graduates to develop to make them more marketable to employers in today's highly competitive marketplace. ...
... having a stronger sales result in this study. This was the case despite the fact that the GPA of a graduate as a predictor of success in the work environment was questioned by Kass, Grandzol, and Bommer, (2012). ...
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A Correlation Study of Education and Pharmaceutical Sales. This study compares actual sales results of pharmaceutical sales representatives with the type of school attended based on whether it was online or on-ground. It also compares actual sales results to GPA, level of education, and years of service in the pharmaceutical sales industry.
... This fosters entrepreneurial ability and innovative instincts that determines success and failure of enterprises (Chadavi & Sirothiya, 2018). On the other hand, a many studies support the finding that MBA course and students" performance in it does not predict any managerial competency and skill (Kass, Christian, & Bommer, 2012;Bohra 2013). The management education in India seems to be a victim of its own success. ...
... Some major factors affecting the academic performance of the students are: gender (Dayioglu & Turut-Asik, 2007;Ekpenyong, 2015;Hettler, 2015); ethnicity, i.e. religion, race, language, nationality, etc. ( (Naz, Bagram, Khan, 2012); etc. The academic performance of students is also affected by the student"s performance in previous courses (Christensen et al., 2012); performance in admission test such as GMAT (Kass et al., 2012); personality type (Russo & Kaynama, 2012); and duration of the study (Katsikas & Theodore, 2010). The ultimate goal of an educator is to improve the students" learning, which is generally measured in terms of scores they earn in the course (Guru-Ghana & Flanagan, 2012). ...
... Research studies around the world exhibited conflicting results regarding the academic performance of the MBA students and development of the employable skills, salary package, and career growth. Many scholars expressed that the students GPA i.e. grades in examination and employability has no relationships with each other (Rubin & Dierdorff, 2011;Kass et al., 2012). ...
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Since a long time, researchers have been exploring various dimensions of students’ academic performance, including-various factors influencing academic performance and the nature of relationship among them; methods of improvement; the impact of academic performance on the students’ career, country, community, etc. The study in hand investigated the report cards of 1645 newly admitted MBA students (enrolled in 29 different institutions of Knowledge Park, Greater Noida, Uttar Pradesh) and tested the authenticity of few popular presumptions about the academic performances of students in Indian society. The research used a descriptive research design and a judgmental sampling technique. The data-sets were cross tabulated and analyzed using the tools of descriptive statistics. The hypotheses were tested using two tailed t - tests (i.e. paired - samples t-test and independent - samples t- test) for large samples. Finally, the research provided statistical evidence to accept or reject the validity of few popular presumptions about Indian students. The research disapproved a popular presumption that ‘the students who perform well in internal examinations will also perform well in external examinations. ‘Further, the research provided a rationale to validate the presumption that ‘the females are more studious and perform better than male students,’ Further, the research also approved another presumption that ‘the origin of the students’ religion does not indicate or hint at their academic performance.’. © 2018, Associated Management Consultants Pvt. Ltd. All right reserved.
... Another study that investigated the predictive validity of GMAT is that of Kass et al. (2012), which focused on 72 non-U.S students who were admitted onto a Master of Business Administration (MBA) programme at a university in Pennsylvania in the U.S. They used these analyses in their study: sequential regression, correlations and stepwise regressions. ...
... Engineering and Business (Kass, Grandzol & Bommer, 2012;Shaw et al., 2012;Sireci & Talento-Miller, 2006;Wait & Gressel, 2009). This focus upon particular academic disciplines is similar to the position within Arab countries (e.g. ...
Thesis
Universities face numerous challenges each year, including the process of making decisions concerning the admission or otherwise of applicants (Tesfa, 2013). This could be compounded by an increase in student numbers and a decrease in university resources, predicting future academic success (Alghamdi, 2007). Educators and admission officers together try to decide what leads to the success of learners at certain colleges or on particular majors within universities. Administrators responsible for the admission policy need to be accurate and objective when making such decisions, using suitable admission standards which help in reaching a decision characterised by equity, accuracy, and objectivity (Alsaif, 2005). The purpose of the present study is to investigate the predictive validity of the current admission standards applied at the College of Education at KFU in Saudi Arabia and explore which score among the current criteria used offers the strongest contribution to students’ academic success. Furthermore, since this study attempts to include students from both gender groups, and very few studies have included both genders at the general level, and, to the best of my knowledge, none has been done in the Saudi context, this study aims to explore any possible variation between the criteria items in terms of gender grouping. Additionally, since none of the previous studies have addressed the issue of students changing their major after initially being admitted to certain majors at the university, this study attempts to explore the academic performance of students who changed their major after starting their university study. The participants in this mixed methods research largely drew on two resources: the first resource refers to the data that was collected from the Admission and Registration Office in the Education College. The database includes all fulltime students (males and females) who have attended the Education College at King Faisal University from the academic year 2010 up until their graduation in 2014. The sample did not include students who had left the Education College at KFU before the end of the academic year 2014 and any students who had not graduated by the end of the academic year 2014. The total number of participating students was 693. In addition, the researcher conducted face-to-face interviews with 8 academics who work at the Education College in KFU and who teach a number of education courses. These lecturers and professors were interviewed about a range of experiences and practices. Results indicated that a statistically significant relationship exists between the student accumulative rate in High School (SGPA) and the accumulative rate in the College of Education (CGPA) at King Faisal University at Alahsa (r = 0.562, p<0.01), between the General Aptitude Test (GAT) and Education College GPA (r = 0.324, p<0.01), and between the Achievement Test (ACT) and Education College GPA (r = 0.268, p<0.01). High School GPA is the most important factor in predicting the performance of students in the Education College, followed by the Aptitude Test, then the Achievement Test. Beta coefficients were 0.512, 0.163 and 0.006 respectively. Regarding the result, it was clear that females exhibited better performance compared to males in both the General Aptitude Test and the High School percentage. In addition, the students who changed major had a higher High School percentage mean compared to those that did not change major, and the mean difference was statistically significant. On the other hand, for the General Aptitude Test, those that did not change major had higher mean scores compared to those that changed major, and the mean difference was statistically significant.
... Thus, higher scores should predict future success, and therefore the strongest candidates should have the highest GMAT scores. While many have argued in favor of using the GMAT due to its validty (e.g., Kuncel et al., 2007), the test itself has met with controversy about its overall usefulness and utility as a predictor (e.g., Gropper, 2007;Kass, Grandzol, & Bommer, 2012) and its bias (e.g., Aggarwal, Goodell, and Goodell, 2014). ...
... Clayton and Cate (2004) examined graduation rates and found that neither the GMAT nor GPA was a good indicator of program completion. Previous research conducted by one of the authors on this paper found that while GMAT did predict GPA, it did not successfully predict the competencies that underlie effective management, including communication, teamwork, leadership initiative, and decisionmaking (Kass, Grandzol, and Bommer, 2012). ...
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The purpose of this research was to determine if the GMAT actually mattered for MBA student performance. A waiver option was recently instituted in our MBA program based on GPA and/or professional experience, providing the ability to compare group differences (GMAT vs non-GMAT students) on several relevant outcome variables, including: (1) graduate GPA, (2) a managerial in-basket assessing managerial competencies, and (3) the MBA ETS, a standardized measure of knowledge of MBA program content. Results revealed that there were no differences in scores on the outcomes measures between groups, questioning the validity of the GMAT as a selection tool, particularly for students with high GPAs and/or significant work experience.
... This is why cognitive predictors should be supplemented in South Africa with tests of learning potential or culture-free non-verbal assessments (see, e.g., Foxcroft & Roodt, 2018). The controversy regarding the use of the GMAT (Kass, Grandzol, & Bommer, 2012;Pratt, 2015) necessitated a broader perspective on performance, and the search for a more relevant combination of admission criteria. Not only is predictive utility important for the performance and success of the student, but it also impacts graduation and retention rates at universities and is an important determinant of university funding as well as the maintenance of academic standards (Kotzé & Griessel, 2008). ...
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Purpose: The main aim of this research was to investigate the relationship between the five-factor model (FFM) personality trait measurements and Master of Business Administration (MBA) academic performance in a triple-crown accredited university in order to assess the effectiveness of current admission systems for a globally accredited MBA degree. Design/methodology/approach: A quantitative database analysis of the academic records and personality profile scores of MBA graduates was conducted. The sample consisted of 663 participants who successfully graduated from the programme during the period 2014–2019. Their final academic results for their MBA and their FFM personality traits (as measured by the Occupational Personality Questionnaire as part of their admission criteria) were analysed. Findings/Results: In the correlation analysis, Openness to Experience and Agreeableness had the strongest correlation (positive and negative, respectively) with academic performance. In the regression analysis, Openness to Experience, Conscientiousness and Emotional Stability were identified as the best predictors of performance. Practical implications: Three per cent of the variance in academic performance was attributable to personality traits. This supports the necessity of further exploring the best predictors of academic performance. Academic institutions may consider re-evaluating their current practice and choice of tests used as part of the admission criteria, and rather focus on assessing and capacitating students in terms of resilience and motivation. Originality/value: This study adds to the debate regarding the ideal selection criteria for MBA candidates, and indicates that the current selection criteria, also those considered more nuanced and culturally sensitive (e.g. personality assessments), may be flawed.
... The HBR case studies also demand qualitative and teamwork skills. While an inverse relationship between math performance and a team grade may appear counterintuitive, Kass, Grandzol, and Bommer (2012) similarly identify negative correlations between GMAT-Q and variables measuring both communication and teamwork. For universities without an R 1 Carnegie Classification, typically only a few students have top tier GMAT scores, thus forcing an admissions judgment regarding the adequacy of quantitative and non-quantitative skills. ...
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This research examines the relationship between prerequisite algebra knowledge and graduate corporate finance course performance. Standardized math questions designed for an undergraduate introductory finance course also predict quantitative performance metrics among 128 business graduate students. Results demonstrate that prerequisite math skills, while to a lesser extent than with undergraduate finance courses, do remain an obstacle for the quantitative performance metrics of a graduate corporate finance course. However, math skills demonstrate an inverse relationship with team-based case study performance, thereby obscuring the overall impact of any math skills deficiencies. This research presents a three-question course-embedded assessment tool to support finance course assurance of learning in an AACSB context.
... Most of the world's best minds pursue management education because it is a surefire way to high-paying jobs with promising futures (Harsolekar & Munshi, 2018). The academic success of students in higher education can be shaped by a combination of complex forces (Phang et and entrance exam (Kass et al., 2012); study duration (Katsikas & Theodore, 2010); etc. Few of these factors can be studied thoroughly by analysing report cards and other available documents. ...
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Report cards not only attest to students' academic performance in a program, but they also contain several valuable insights. The study was based on the analysis of information readily available on the report cards of MBA Ist semester students. Report cards of 1301 students enrolled in Dr APJ Abdul Kalam Technical University, India (Asia's largest affiliating University) affiliated institutions were examined. The study identified two types of courses: quantitative courses and non-quantitative courses. Furthermore, students' performance varied significantly between categories, and quantitative courses were more difficult to score than non-quantitative courses. Decision models capable of predicting 'overall academic performance' were developed using multiple linear regression analysis. Report cards were used to collect data on the dependent variable (overall academic performance) and five predictor variables (gender, ethnicity, and students' performance in three quantitative courses, namely managerial economics, business statistics, and business accounting). Finally, the study discovered that the predictor variable 'AGP in Managerial Economics' had the most significant impact on overall academic performance. Then came 'AGP in Business Statistics', 'AGP in Business Accounting', and the gender of the students. Keywords: Academic performance; quantitative courses; gender; ethnicity; AGP (Average Grade Points)’; SGPA (Semester Grade Point Average). JEL Classification: I20, I23, M00, M10
... The HBR case studies also demand qualitative and teamwork skills. While an inverse relationship between math performance and a team grade may appear counterintuitive, Kass, Grandzol, and Bommer (2012) 12 level, between the three-question math quiz and poor team skills indicated by the Case Flag variable. Table 6 does not indicate that math skills directly reduce Cases performance, but rather under a reversion to the mean paradigm, students admitted on the strength of quantitative skills may possess below-average non-quantitative skills that are relevant to Cases performance. ...
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This research details the relationship between prerequisite algebra knowledge and graduate corporate finance course performance. Standardized math questions designed for an undergraduate introductory finance course also predict quantitative performance metrics in a graduate finance course. Results demonstrate that prerequisite math skills, while to a lesser extent than with undergraduate finance courses, do remain an obstacle for the quantitative performance metrics of a graduate corporate finance course. However, math skills demonstrate an inverse relationship with team-based case study performance, thereby obscuring the overall impact of any math skills deficiencies. This research presents a three-question course-embedded assessment tool to support finance course assurance of learning in an AACSB context.
... Following the extant literature (Kass et al., 2012;Kuncel et al., 2007;Oh et al., 2008), we group MBA admission criteria of UGPA, GMAT total and subtest scores (verbal, quantitative, and analytical writing assessment) as independent variables or input into four models as shown below to predict MBA student academic performance indicated by GGPA or as output for ANNs, OSL, and logistic regression, respectively. We exclude other non-contributing information (i.e., gender, age, race, and undergraduate institution) from our final data set after running the initial validity checks. ...
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MBA has become one of the most popular and vital professional degrees internationally. The MBA program admission process’s essential task is to choose the best analysis tools to accurately predict applicants’ academic performance potential based on the evaluation criteria in making admission decisions. Prior research finds that the Graduate Management Admission Test (GMAT) and undergraduate grade point average (UGPA) are common predictors of MBA academic performance indicated by graduate grade point average (GGPA). Using a sample of 250 MBA students enrolled in a state university with AACSB accreditation from Fall 2010 to Fall 2017, we test and compare the effectiveness of artificial neural networks (ANNs) against traditional statistical methods of ordinary least squares (OLS) and logistic regression in MBA academic performance prediction. We find that ANNs generate similar predictive power as OLS regression in predicting the numerical value of GGPA. By dichotomizing GGPA into categorical variables of “successful” and “marginal,” we identify that ANNs offer the most reliable prediction based on total GMAT score and UGPA while logistic regression delivers superior performance based on other combinations of the predictors. Our findings shed light on adopting ANNs to predict academic performance potential with a strong implication in MBA admissions to select qualified applicants in a competitive environment.
... For instance, previous researchers (Gupta and Turek 2015) indicated that undergraduate grade point average (GPA) and GMAT scores are two of the most common criteria used for MBA admissions today. Kass et al. (2012) found that the combined use of undergraduate GPA and the verbal and quantitative sections of the GMAT successfully predicted performance in an MBA program. Shepherd et al. (2008) also noted that the MBA selection procedures rely heavily on GMAT scores and prior work experience. ...
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Although the research on student selection criteria has been very rich up to now, the role of the level of foreign language played in the admission selection of a non-native spoken program is still receiving little attention. This study intends to explore the issue through three research methods: (1) two-sample test of a hypothesis; (2) multiple linear regression analysis; (3) machine learning algorithms (Ridge regression, SVM, Random forest, GBDT). The case about 549 students enrolled in the Shanghai International MBA Program in China from 2007 to 2014 was used as empirical research samples. Through three methods of analysis and comparison, it was found that Oral English fluency played a key role in the admission selection of the English spoken MBA program in China. It is confirmed that the criteria, such as Rank of the graduated university, Company Nature, Latest Highest Degree, Math Exam, Sponsor (Tuition provider) and Stress management, have very good effect in predicting the final grades of students when graduation. This study also shows that the methods based on machine learning algorithm modeling such as ridge regression and SVM are suitable for student selection decision modeling.
... All studies highlight limitations with their findings, based on issues described earlier. Studies involving a comparison between high and low academic performers with respect to wages Donhardt (2004) and the use of grades to predicate competencies which underpin managerial effectiveness, such as leadership initiative Kass, Grandzol, and Bommer (2012) also indicated no significant difference between the two groups, and report similar limitations. ...
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... One of these hurdles in graduate business education is the requirement for taking the GMAT (Graduate Management Admissions Test) which requires considerable effort in exam preparation. Studies on GMAT as a predictor of MBA performance indicate that while the GMAT verbal score is positively correlated with graduate GPA level of MBA students, it is in fact the prospective MBA student's undergraduate GPA and work experience which are the stronger predictors of academic performance in an MBA program (Fairfield-Sonn, Kolluri, Singamsetti & Wahab, 2010;Kass, Grandzol & Bommer, 2012;Pratt, 2015;Hammond, Cook-Wallace, Moser, & Harrigan, 2015). Waiving the GMAT requirements for applying to an online MBA program may encourage a greater number of applications, resulting in higher demand for the program and the ability of the program to charge higher tuition levels. ...
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The number of online MBA programs has increased in recent years while the demand is stabilizing. In light of this trend, the pricing of online MBA programs is an important issue for university administrators and policy makers, who are concerned about program competitiveness and public access to higher education. This study examines the drivers of tuition levels for online MBA programs. Utilizing data from 149 programs in the United States, the influence of various variables on tuition levels is empirically established. The findings indicate that residency and GMAT requirements, as well as enrollment size and student-to-faculty ratio, are important determinants of tuition for online MBA programs. The empirical framework presented in this paper allows university administrators to establish if the tuitions charged for their programs are consistent with market norms, and thereby determine the potential need for adjustment in tuition levels.
... ( This is based on the finding that quantitative measures, despite being the most predictive of graduate success, only explain 20%-25% of the graduate CGPA ( Ahmadi and Raiszadeh 1997;Braunstein 2002;Braunstein 2006;Carver and King, 1994;Dekro and Woundenberg 1977;Hoefer and Gould, 2000;Kass, Grandzoi and Bommer 2012;Sulaiman and Mohezar 2006;Yang 2001). This gap in the predictability of these quantitative measures has led researchers to suggest the inclusion of qualitative factors when making admissions decisions. ...
... The GMAT measures essential skills in business and management, such as analytical writing and problem-solving abilities, and addresses data sufficiency, logic and critical reasoning. The test consists of three sections: quantitative, verbal, and analytical writing (Kass, Grandzol, & Bommer, 2012); however, most studies examine only the verbal and quantitative sections as evidenced in other meta-analyses (Kuncel et al., 2007;Oh, Schmidt, Shaffer, & Le, 2008). ...
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... Kass, Grandzol, and Bommer (2012) MBA students 69 ...
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In this study, the authors examined the relationship between scores on the Graduate Management Admissions Test (GMAT) and achievement in core academic courses. The authors used a sample that revealed the potentially differential academic performance of male and female MBA students (N = 334) within particular GMAT scoring cohorts. Results showed that, for the top scoring GMAT cohort, there was statistically significant evidence of bias against the women. The potential effect of this bias against women may affect admissions decisions to graduate programs in business, particularly at the most selective MBA programs.
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Considerable debate both within and outside of academic circles surrounds the validity of standardized tests for predicting student performance in graduate business schools. This meta-analysis aggregates the existing literature on the validity of the two most heavily used predictors in business school admissions: the GMAT and undergraduate grade point average. Results based on over 402 independent samples across 64,583 students indicate that the GMAT is a superior predictor to UGPA and that the two combined yield a high level of validity for predicting student performance.
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An integral part of the test evaluation and improvement process involves providing evidence that valid inferences can be made based on test scores. Additionally, it is imperative to provide evidence that validity results can be generalized to all potential populations being administered an exam. This study evaluated the predictive validity of the Graduate Management Admission Test® (GMAT®) for doctoral students enrolled in 18 different graduate business-oriented programs. Results indicated that the GMAT® exam was a better predictor of first-year performance than was previously reported. Moreover, GMAT® scores were better predictors of grades than undergraduate grade point average. Results for gender, English skill, and program concentration subgroups are also described. Purpose
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Although business school enrollments have soared and business education has become big business, surprisingly little evaluation of the impact of business schools on either their graduates or (he profession of management exists. What data there are suggest that business schools are not very effective: Neither possessing an MBA degree nor grades earned in courses correlate with career success, results that question the effectiveness of schools in preparing their students. And. there is little evidence that business school research is influential on management practice, calling into question the professional relevance of management scholarship.
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Purpose – The paper seeks to examine major challenges facing MBA programs and to argue that they will have to reconsider their value proposition. It aims to explore effective curricular and programmatic responses as opportunities for MBA programs to innovate. The paper also aims to call for collective action across the business school field to effectively address these challenges. Design/methodology/approach – The research is grounded in empirical methods including semi-structured interviews, data on curricula, courses, applications, enrollments, tuition and fees, and faculty hiring, and case studies of particular institutions. Findings – Business schools need to reassess the facts, frameworks, and theories that they teach, while also rebalancing their curricula to focus more on developing skills, capabilities, and techniques as well as cultivating values, attitudes, and beliefs. Originality/value – The paper draws on original sources of qualitative and quantitative data to present a detailed picture of the current state of MBA education. It identifies eight unmet needs based on interviews with deans and executives, and proposes curricula innovations that address these needs.
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Masters of business administration (MBA) programs are being met with escalating criticism from academics, students, and various organizational stakeholders. Central to these criticisms is the contention that the MBA is wholly out-of-touch with the “real world” and is irrelevant to the needs of practicing managers. Examining this contention, we investigated the relevancy of MBA curricula in relation to managerial competency requirements. Relying on an empirically derived competency model from 8,633 incumbent managers across 52 managerial occupations, our results showed that behavioral competencies indicated by managers to be most critical are the very competencies least represented in required MBA curricula. Findings further indicate that institutional factors such as media rankings and mission orientation have no effect on the alignment of MBA curricula with critical managerial competencies.
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Substantial evidence demonstrates that sound management practice is critical to creating effective organizations. Despite this fact, recent research suggests that courses designed to inculcate human capital competencies are wholly underrepresented in MBA curricula. Scholars have attribute culpability in various directions, collectively suggesting a broad devaluing of management education from one or more stakeholders including recruiters, business school policy makers, faculty, and students. In this essay, we bring forth evidence which reveals considerable agreement across stakeholder groups regarding the importance of emphasizing human capital competencies in MBA curricula. That is, contrary to conventional notions, business school stakeholders largely agree with practicing managers that human capital competencies are among the most important to be trained within MBA programs. This evidence suggests an Abilene Paradox (Harvey, 1974) wherein the status quo of curricular misalignment is maintained due to a mismanagement of agreement. As such, we argue management faculty must deploy an evidence-based campaign that productively surfaces this agreement and moves MBA programs toward enacting appropriate curricular change congruent with managerial realities.
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