The GMAT is a necessary hurdle on your way to business school, but sometimes it’s hard to see why. What do these multiple choice questions really have to do with a masters in business administration? If this question plagues you, take a look at this recent post from the GMAC. It explains exactly how two types of questions”data sufficiency and critical reasoning”measure abilities required by business schools.

Data Sufficiency. This question type, which requires you to determine what’s necessary to solve the problem, is ultimately a test of your ability to weed through minutiae for the important details. And sorting through information is an essential skill set, given the data-rich nature of the modern business environment, says Booth School of Business professor Pradeep Chintagunta. To successfully manage in this environment requires translating the data into usable information, he says, adding, The skills tested by the Data Sufficiency part of the test are consequently critical to managerial decision making.

Critical Reasoning. These questions probe your ability to evaluate the relative strengths of arguments. If you can handle a critical reasoning question, you’re prepared for collaborative b-school projects requiring you to judge others’ ideas. And those projects, in turn, are designed to get you ready for the real world. MBA programs can provide students with decision-making processes, says Valter Lazarri, MBA director of the SDA Bocconi School of Management, Milan, but they need a raw ability to connect facts, to detect patterns, to discriminate true causation from spurious correlations.

Of course, it is easier to sort through information when you understand its substance”hence our content-based curriculum.  And don’t fret if you’re struggling in these areas. With diligent practice, you can develop your natural abilities.

As you may have heard from our partners at MBAmission, HBS has announced its new dean: Nitin Nohria, a professor of business administration. As this Washington Post article points out, one especially interesting aspect of Harvard’s pick is that Nohria has long advocated administering a voluntary MBA oath to create responsibly and ethically. He’s at the forefront of a push to provide MBAs with a more solid background in ethics. Harvard President Drew Faust called Nohria’s appointment an important moment for the future of business. It certainly marks a turning point for business school curriculums.

For years, voices in academia have called for greater emphasis on ethical education for MBAs, but now they seem to be entering a new era of influence.  The Wall Street Journal reports that a recent survey of business-school administrators ranked ethics as currently the most important subject for students. An overwhelming majority of schools surveyed advocated a stakeholder approach to inculcate a sense of corporate responsibility. That growing consensus has translated into new courses and, in some cases, made a significant impact on the entire program. In building the curriculum for Johns Hopkins’ Carey Business School, dean Yash Gupta chose to weave ethics into many courses, rather than cordoning the subject off into a single semester. “We’ll teach students about decision making ” behavioral, rational, how the brain functions ” in the first year, but we’ll also give them chances to make decisions,” he says.

This isn’t simply an academic notion, either. Companies are looking explicitly for ethical qualities in their new hires. According to the Journal, Pascal Krupka, MBA director at France’s Rouen Business School, “Companies, when they used to come to the school, they used to start with ‘We want talented people,’ but now they start their speech with ‘We need people with very good ethics.’

Plus, as the USA Today suggests, the financial crisis has energized this movement in business management education. “If we don’t teach people to sort of look around and have greater peripheral vision, then we’ve just set ourselves up for the next crisis,” says Stephen Spinelli, president of Philadelphia University (and co-founder of the Jiffy Lube).

Whatever the impetus, look out for changes in MBA programs across the world.

You don’t need another reason to get excited about your MBA, but here’s one anyway: Business schools spawn some awesome ideas, and they aren’t limited to finance or IT.

Take two submissions to recent business plan competitions. About a week ago, the New York Times covered Tough Mudder, born as a semifinalist entry in Harvard Business School’s annual business plan competition.  Founder Will Dean believed he could convince 500 people to pay to run a grueling, muddy obstacle course. After graduation, he launched the business with just Facebook ads and a website for marketing. And so far, he’s pulled it off”the company just staged its first race with an impressive 4,500 participants.

And just this past Sunday, the Financial Times featured some Scottish participants in a short entrepreneurship program at MIT’s Sloan School of Business. It’s not a traditional MBA, but it is a testament the nifty ideas you can cook up in the environment of a b-school. Michael Laurenson, a mussel farmer, was a member of the team that won the competition. Their concept was neither a social media start-up nor a new medical product. Instead, it was a device for improving fish farms. When we were at MIT the thing they said to us was: ˜Do what you are good at’, he says. His native Shetland isn’t ideal for finance or IT start-ups, so he stuck with what he knew: Aquaculture.

These examples fit nicely with our recent post on alternative careers chosen by MBAs. B-school grads can take their degrees in any number of directions. So pursue what inspires you!

Business school applications are a daunting prospect, and new questions pop up constantly. That’s why mbaMission founder Jeremy Shinewald will be holding regular Q&A sessions in our live online classroom, starting tomorrow at 6pm EST. Feel free to drop in at any point during the session”Jeremy will be available for the full hour.

If you can’t make it tomorrow, we’ll be holding another MBA Q&A in two weeks, on May 13. Stay tuned for future sessions as well.

A recent Business Week post about b-school summer reading lists got us thinking here at Manhattan GMAT. What other books might provide a good foundation for your first year? We turned to Chris Ryan, our Director of Instructor and Product Development, for some recommendations. His suggestions make good reading for incoming MBA students and curious applicants alike.

1. First and foremost, Chris recommends Larry Gonick’s Cartoon Guide to Statistics, which will give you a jump on the hardest quant class in your first semester, one on which other important classes ” like Finance and Operations ” depend. “If you actually understand the content in this book, you will do better in your stats class ” it’s as simple as that,” Chris tells us. The title might sound silly, but the content is truly useful.

2. A more theoretical start for your reading would be Co-Opetition (Adam M. Brandenburger and Barry J. Nalebuff), which covers game theory and its practical applications for business. The authors argue that to maximize success, companies sometimes have to cooperate with traditional rivals.

3.You should also pick up something about the economic turmoil of recent months. “You’re going to need to have an opinion,” Chris says. Pair your selection with Roger Lowenstein’s When Genius Failed, which covers the rise and fall of Long Term Capital Management, a hedge fund that brought about a late-90s precursor to the current financial crisis.

Plus, for a b-school beach read, try Predictably Irrational (Dan Ariely), a nice introduction to behavioral economics.

For more suggestions, try Business Week’s list.

More women are headed to business school these days, according to a piece over at Forbes.

The numbers certainly are striking. In the last decade, women have enrolled at business schools across the country in ever-greater numbers. Between 1997 and 2007, the percentage of MBAs awarded to women jumped from 39 percent to 44 percent”a 12.8 percent increase over a single decade.  Top schools are showing big leaps, too: HBS went from 28 percent women in 1995 to 38 percent in 2010, while Wharton’s female population climbed from 32 percent in 2007 to 40 percent in the class of 2011.

So what’s driving the increase? The article suggests it’s the combination of a weak economy, recruiting initiatives targeted to women, and, most of all, the flexibility offered by an MBA. Female grads can take their degrees into the nonprofit world or even start their own businesses, says Deirdre Leopold,  Harvard’s managing director of MBA admissions. That allows more wiggle room, especially for students juggling family responsibilities.

The increasing gender balance sure seems like good news to us!

The GMAT just keeps expanding. GMAC reports that there are now more than 500 centers worldwide where you can take the test, up more than 25 percent since 2006.

A record 267,000 people took the test in 2009, and for the first time since its creation, there were more international than US test-takers (by just a single percentage point). A lot of the growth comes from China and India. The number of Chinese citizens taking the GMAT rose 35 percent in 2009, while 7 percent more Indians took it. The growth in the number of test-takers on the subcontinent has been explosive recently, increasing 128 percent in the last 5 years.

To meet the additional demand, the GMAC is opening an office in India, according to the Times of India. It will be the company’s third, after the US and UK. “I feel there’s great potential for growth in the country,” GMAC CEO David Wilson told the paper.

Good news for MBA hopefuls: A couple of recent stories indicate things are picking up at career offices, particularly if you’re interested in clean energy.

Last week we pointed to a Business Week piece about increased interest in European MBA programs. Now the mag tells us recruiting is also picking up at the continent’s top b-schools. Renewable energy companies are recruiting aggressively, along with biotech, public administration, and nonprofits, says the director of INSEAD’s career office. That fits with the news from the senior director of Sloan’s career office, who recently told the Journal she’s seeing a lot of action in consumer products companies, including clean tech and medical devices. The hiring process still isn’t easy, but there’s light at the end of the tunnel! If that’s too far in the future for you to worry about right now, rest assured that students are seeing more summer internship opportunities too.

Thinking of going to school abroad?  You’re not alone! Applications are up sharply at European B-schools, according to Business Week. It’s part of an upward trend worldwide, but the increase is particularly high in Europe, where many institutions say apps are up 10 percent or more. The Vlerick Leuven Gent Management School in Belgium has doubled its class in the past year, while Switzerland’s St. Gallen has grown its part-time program 100 percent. The trend is also ramping up competition in many places–Westminster Business School, in the UK, has had to wait-list full-time MBA candidates for the first time in the school’s history.

The piece attributes the growth largely to career changers and young people looking for a recession safe haven that will bolster their resume. European schools are also increasingly attractive to international students who plan to return, thanks to easier visa requirements and widely dispersed alumni networks.

If you’re in the market for an international GMAT course, check out our new London offerings, as well as our Live Online classes. And if you just want to take a trip to Europe, the dollar’s getting stronger, so a Big Mac will only be $8 or so.

The organization that administers the GMAT, the GMAC, is always looking to make the test available to anyone who might be interested in graduate business education.  That’s why, once again, the GMAT bus is making the rounds, bringing the exam directly to students.

Originally launched in 2006, the bus will visit 32 schools in 14 states. Its 8-month cross-country tour begins in Stockton, California, at Humphreys College, on October 21 and will end with a visit to Bethune-Cookman University, in Daytona Beach, Florida, on May 7.  So if you’re far from a regular testing center, you should check out the tour schedule and see if it might be a fit.

The program aims to recruit more diverse business school applicants by bringing the exam to students who might have trouble getting to a testing location.  Kudos to GMAC for getting themselves out there.

Also, we’re just entertained that there’s actually a giant GMAT Bus!  Imagine seeing that on the highway . . .

The GMAT Bus