EVALUATION OF
PSYCHOMETRIC TOOLS
Ankit Amlan
Fieldwork Intern, Kotak Mahindra Bank Limited
Psychological Assessment
Psychological
Assessment
Measurement
Correct/incorrect
item responses
Tests
Not using
correct/
incorrect
responses
Questionnaires
/Inventories
Non-
measurement
Interviews,
observations
etc.
Other
questionnaire
s/ checklists
etc.
•Measurement is the assignment of numbers to properties or attributes of people,
objects or events using a set of rules
•It uses a set of rules to quantify these. They must be standardized, clear, understandable
and easy to apply
Core Characteristics of Assessment
Standardized administration
• So that the administration and instructions are the
same for everyone who takes them
A scientific rationale for what is being
measured
An explanation of construction
Use of a large sample to establish norms
or a process for comparison with others
Accuracy and error measures
The dangers of not doing so
• Purchasing an assessment which is
inappropriate for the purpose
required
• Purchasing one which is of poor
quality
• Not understanding how to use the
assessment
• Not administering or scoring the
assessment effectively
• Misusing the test and the
interpretation
Types of Measurements
 How well a person performs in a
particular field following instruction
or teaching.
 They range from abstract concepts to
practical knowledge
 Abstract reasoning
 Numerical reasoning
 Musical sensitivity
 Programming aptitude
 Spelling and grammar
 These are the qualities, which are
temporary and can be learnt and
developed over a period of time.
 Includes assessments of personality,
belief, values and interests
 Typical ways of thinking and
behaving, being referred to as
underlying characteristics or traits
 Often assessed by self-report
measures having multiple scales
 The 16 Personality Factor questionnaire
(16PF)
 The Myers-Briggs Type Indicator (MBTI)
 The Occupational Personality
Questionnaire (OPQ)
 These are traits which are generally
permanent in nature in an individual
Measures of maximum
performance Measures of typical performance
Scales and Inventories for
Psychological Assessment
Nominal Scales
• Classify people into
categories by
labelling and
• Convenient method
of describing them
as individuals or
groups
• Only a limited
number of
transformations and
statistics can be
conducted on data
Ordinal Scales
• More precise level
of measurement
than nominal scales
and place people in
some kind of
hierarchical order
by assigning
numbers
• The scale is relative
to the set of people
being measured
Interval scales
• Like ordinal scales,
assign numbers to
indicate whether
individuals are less
than, greater than
or equal to each
other, but represent
the difference
between them
• intelligence tests
Ratio Scales
• Highest or ideal
level of
measurement, have
a ‘true’ value of 0,
indicating
• A complete absence
of what is measured
and also possess the
characteristics of an
interval scale
Psychological assessment scores , generally involves measurement on ordinal scales which
enable comparison of an individual with other which is then converted to interval scales for
representation.
Design of Personality Questionnaires
Yes – No items
• ‘I have often cried whilst
watching sad films’. Yes – No.
Personal information
• I would rather work:
• a. in a business office,
supervising people
• b. ?
• c. in a library, on my own
True – False items
• ‘People in authority frighten
me’. True – False
Like – Dislike items
• ‘Spiders’. Like – Dislike
Items Having Rating
Scales
• Strongly agree, agree, in-
between, disagree, strongly
disagree
Forced-choice Items
• When you are working, do
you …
• enjoy times when you have to
work hard to meet a
deadline, or
• dislike working under undue
stress, or
• try to plan ahead so that you
don’t work under pressure?
Theories of personality
 Types Theory
 Represent distinct groups of
people characterized by a
unique configuration of
features
 Makes it easier to cope with a
complex social world through
labelling personality ‘types’
 They also use rigid labels,
which can be misleading
 MBTI is an example of Type
test
 Trait Theory
 Usually used by psychologists
to study the various traits
possessed by individuals
which results in a particular
behaviour
 They are more
straightforward than types,
and are capable of
measurement
 They form a normally
distributed continuum on a
scale, having a mean score at
the centre
 PI is an example of Trait test
Paradigms of Assessment
The Psychodynamic
Paradigm
• Lack scientific rigour
and methods
• Different behaviours
could be indicators
of the same
underlying impulse
The Cognitive-
behavioural
Paradigm
• Our behaviour
defines our
personalities
• Performance of role
models could be
observed and
imitated by others
• Assessments involving
individuals and
situational variables,
making use of
observations, diaries
and interviews
The Trait Paradigm
• Relatively enduring
characteristics
• Independent of any
stimulus external to a
person
• Describes personality
in terms of continuous
scales and an
inventory is made up
of any number of
them
The Trait paradigm
 The trait paradigm assumes that:
 Our thoughts, feelings and
behaviours vary in a number of
ways.
 These variations can be
measured.
 When they are measured, they
are normally distributed like
other characteristics.
 Eysenck (1967) suggested there
are three dimensions along which
personality varies:
 • Introversion – Extraversion
 • Neuroticism – Stability
 • Psychoticism – Normality
 These can be rated on a scale of
zero to maximum for the purpose
of rating
 Cattell identified 16 important
dimensions or ‘source traits’ which
later came as 16PF(Personality
Factor)
 In contrast, some inventories
appear to measure more of the
original surface traits, such as the
Occupational Personality
Questionnaire (OPQ)
Source Traits 16PF
Psychometrics in India
 Psychometric tests are widely used in the US and Europe
 However, psychometric assessments are in a nascent stage in India
 Some of the widely used psychometric tools:
 Thomas profiling
 16PF
 Firo B
 Predictive Index
 DISC
 MBTI
 Personality and Preference Inventory-Normative (PAPI): Used
predominantly used in India for hiring. It is also used for people who
are in the system with up to 2 years of experience
 SHL: competency tool for India
 The Hay Group's psychometric tool
Purpose of the tests
Recruitment and selection
• Myers Briggs Type Indicator
(MBTI) and Preference Inventory-
Normative (PAPI) are used in
India predominantly for hiring
Learning and development
Competency mapping
Performance appraisal
Validation of Interviews
55%
9%
18%
18%
Percentage of usage
Fresher level
Lateral hiring
Managerial level
Senior level
•In IT companies, psychometric assessments are
used for entry level
•In campus hiring psychometric tools are not
used, because of the costs and the time
•At the senior level psychometric tests are used
to check the technical knowledge of the person
in a domain.
Recruitment and Selection
 Psychometric tests are used in the hiring process as
a validation tool for interviews and are therefore
often administered after interviewing
 Psychometric tests don't come cheap
 Last round of interviewing
 In some cases, when not validation but, elimination is
a motive, psychometric tests are used before
interviewing
Study of different existing
Psychometric tests
 MBTI
 SHL CEB
 DDI
 Predictive Index (PI)
 Hogan
MBTI (Myers- Briggs Type Indicator)
 Developed by Briggs Myer’s out
of the theories of Carl Jung, to
describe 16 personality types
based on the 4 dichotomies:
 Extraversion – Introversion
 Sensing – Intuition
 Thinking – Feeling
 Judging – Perceiving
 Used in areas of pedagogy,
team building, leadership
training, executive coaching
 89 of the Fortune 100 companies
use it.
 Statistical Validity of this method
is questionable. Origins from
psychoanalysis and hence,
speculative
 The 16 outcomes appear to
represent ‘pure’ types and it is
unlikely people will be purely
one of them. People can be
extroverted in some situations
and introverted at others; they
may be capable of both
objective and subjective thought
 Doesn’t include any assessment of
test-takers’ attitudes, so
conclusions can be distorted
SHL – OPQ32 (Occupational
Personality Questionnaire)
 SHL’s Occupational Personality questionnaires provides
an indication of an individual’s preferred behavioural
style at work
 Developed out of Item response theory containing
forced choices method of questionnaires having 32
personality traits being measured in terms of their
dominance
 Used in selection, career development, team building
etc.
 SHL is one of the few providers of cognitive ability tests
Predictive Index (PI)
 Skill and behaviour
assessment test used by many
organizations
 Originally a Trait type of test
based on the Humanistic
Psychology of human drives
 It measures four drives in
Humans:
 Drive for Dominance
 Drive for Extroversion
 Drive for Patience
 Drive for Formality
 Using these drives, there are
selection based questionnaires
on “What people expect of
us to do” and “What we
actually do”.
 Using the answers of the
question leads to the mapping
of data on the basis of self,
self concept and synthesis,
which is represented
graphically.
 Actively used worldwide by
major corporate giants for
recruitment, leadership
development and career-
planning.
DDI (Development Dimensions
International)
 DDI’s pre- employment
testing is a direct test
which includes both
normative and ipsative
test manuals.
 Multiple and repetitive
questions ensure
accuracy and validity of
traits.
 Eliminates the guesswork
and helps in making the
best decisions
• Candidates with higher scores are top
performers
Better Hiring Decisions
• Can quickly zero-in on the most
eligible candidate
Greater Process efficiency
• Results pin-point candidates who are
more likely to engaged and stay
longer
Most Eligible Candidate
• Gives a very larger picture of the
personality
• Can be used for testing data and
career development
Complete picture
India Inc.
More than 50%
Organizations used,
explored or
considered
psychometric tests
Could increase to
87% by 2016
More than 90% of
the companies
which have adopted
it, use it across all
verticals
However a large number of organizations, consider psychometric
tools but don’t use the tools for reasons such as
Cost
Lack of knowledge in the domain
Validity and reliability of these tools
Selling psychometric tests to top management
Lack of statistics showing value for money
Reluctance of senior job applicants to fill out a test
Expectations of the Indian
Organizations
• Provide differences in candidates
• A test that can be used more often, on a large
number of people, which is less costly
• Clear on what the company is hiring for -
competency framework for the company
• Tools specific to Indian environment
• Flexibility of an online system and cost
effectiveness
• A tool to provide specific training assessment
and feedback
• A tool which can address the issues of attrition
by mapping employee traits
Recommendation
 Development of tools to address the menace of attrition
should be prepared. Interviewing is not enough to
gauge the factors of attrition. Implementing a
psychometric screening tool that can predict and reduce
attrition in addition to the selecting methods
 A system to provide a low cost psychometric tool
covering all the aspects
 Successful implementation of psychometric tools other
than recruitment, for competency mapping
 There should be a tool which can map the ROI for
recruitment

Evaluation of Psychometric tools

  • 1.
    EVALUATION OF PSYCHOMETRIC TOOLS AnkitAmlan Fieldwork Intern, Kotak Mahindra Bank Limited
  • 2.
    Psychological Assessment Psychological Assessment Measurement Correct/incorrect item responses Tests Notusing correct/ incorrect responses Questionnaires /Inventories Non- measurement Interviews, observations etc. Other questionnaire s/ checklists etc. •Measurement is the assignment of numbers to properties or attributes of people, objects or events using a set of rules •It uses a set of rules to quantify these. They must be standardized, clear, understandable and easy to apply
  • 3.
    Core Characteristics ofAssessment Standardized administration • So that the administration and instructions are the same for everyone who takes them A scientific rationale for what is being measured An explanation of construction Use of a large sample to establish norms or a process for comparison with others Accuracy and error measures The dangers of not doing so • Purchasing an assessment which is inappropriate for the purpose required • Purchasing one which is of poor quality • Not understanding how to use the assessment • Not administering or scoring the assessment effectively • Misusing the test and the interpretation
  • 4.
    Types of Measurements How well a person performs in a particular field following instruction or teaching.  They range from abstract concepts to practical knowledge  Abstract reasoning  Numerical reasoning  Musical sensitivity  Programming aptitude  Spelling and grammar  These are the qualities, which are temporary and can be learnt and developed over a period of time.  Includes assessments of personality, belief, values and interests  Typical ways of thinking and behaving, being referred to as underlying characteristics or traits  Often assessed by self-report measures having multiple scales  The 16 Personality Factor questionnaire (16PF)  The Myers-Briggs Type Indicator (MBTI)  The Occupational Personality Questionnaire (OPQ)  These are traits which are generally permanent in nature in an individual Measures of maximum performance Measures of typical performance
  • 5.
    Scales and Inventoriesfor Psychological Assessment Nominal Scales • Classify people into categories by labelling and • Convenient method of describing them as individuals or groups • Only a limited number of transformations and statistics can be conducted on data Ordinal Scales • More precise level of measurement than nominal scales and place people in some kind of hierarchical order by assigning numbers • The scale is relative to the set of people being measured Interval scales • Like ordinal scales, assign numbers to indicate whether individuals are less than, greater than or equal to each other, but represent the difference between them • intelligence tests Ratio Scales • Highest or ideal level of measurement, have a ‘true’ value of 0, indicating • A complete absence of what is measured and also possess the characteristics of an interval scale Psychological assessment scores , generally involves measurement on ordinal scales which enable comparison of an individual with other which is then converted to interval scales for representation.
  • 6.
    Design of PersonalityQuestionnaires Yes – No items • ‘I have often cried whilst watching sad films’. Yes – No. Personal information • I would rather work: • a. in a business office, supervising people • b. ? • c. in a library, on my own True – False items • ‘People in authority frighten me’. True – False Like – Dislike items • ‘Spiders’. Like – Dislike Items Having Rating Scales • Strongly agree, agree, in- between, disagree, strongly disagree Forced-choice Items • When you are working, do you … • enjoy times when you have to work hard to meet a deadline, or • dislike working under undue stress, or • try to plan ahead so that you don’t work under pressure?
  • 7.
    Theories of personality Types Theory  Represent distinct groups of people characterized by a unique configuration of features  Makes it easier to cope with a complex social world through labelling personality ‘types’  They also use rigid labels, which can be misleading  MBTI is an example of Type test  Trait Theory  Usually used by psychologists to study the various traits possessed by individuals which results in a particular behaviour  They are more straightforward than types, and are capable of measurement  They form a normally distributed continuum on a scale, having a mean score at the centre  PI is an example of Trait test
  • 8.
    Paradigms of Assessment ThePsychodynamic Paradigm • Lack scientific rigour and methods • Different behaviours could be indicators of the same underlying impulse The Cognitive- behavioural Paradigm • Our behaviour defines our personalities • Performance of role models could be observed and imitated by others • Assessments involving individuals and situational variables, making use of observations, diaries and interviews The Trait Paradigm • Relatively enduring characteristics • Independent of any stimulus external to a person • Describes personality in terms of continuous scales and an inventory is made up of any number of them
  • 9.
    The Trait paradigm The trait paradigm assumes that:  Our thoughts, feelings and behaviours vary in a number of ways.  These variations can be measured.  When they are measured, they are normally distributed like other characteristics.  Eysenck (1967) suggested there are three dimensions along which personality varies:  • Introversion – Extraversion  • Neuroticism – Stability  • Psychoticism – Normality  These can be rated on a scale of zero to maximum for the purpose of rating  Cattell identified 16 important dimensions or ‘source traits’ which later came as 16PF(Personality Factor)  In contrast, some inventories appear to measure more of the original surface traits, such as the Occupational Personality Questionnaire (OPQ)
  • 10.
  • 11.
    Psychometrics in India Psychometric tests are widely used in the US and Europe  However, psychometric assessments are in a nascent stage in India  Some of the widely used psychometric tools:  Thomas profiling  16PF  Firo B  Predictive Index  DISC  MBTI  Personality and Preference Inventory-Normative (PAPI): Used predominantly used in India for hiring. It is also used for people who are in the system with up to 2 years of experience  SHL: competency tool for India  The Hay Group's psychometric tool
  • 12.
    Purpose of thetests Recruitment and selection • Myers Briggs Type Indicator (MBTI) and Preference Inventory- Normative (PAPI) are used in India predominantly for hiring Learning and development Competency mapping Performance appraisal Validation of Interviews 55% 9% 18% 18% Percentage of usage Fresher level Lateral hiring Managerial level Senior level •In IT companies, psychometric assessments are used for entry level •In campus hiring psychometric tools are not used, because of the costs and the time •At the senior level psychometric tests are used to check the technical knowledge of the person in a domain.
  • 13.
    Recruitment and Selection Psychometric tests are used in the hiring process as a validation tool for interviews and are therefore often administered after interviewing  Psychometric tests don't come cheap  Last round of interviewing  In some cases, when not validation but, elimination is a motive, psychometric tests are used before interviewing
  • 14.
    Study of differentexisting Psychometric tests  MBTI  SHL CEB  DDI  Predictive Index (PI)  Hogan
  • 15.
    MBTI (Myers- BriggsType Indicator)  Developed by Briggs Myer’s out of the theories of Carl Jung, to describe 16 personality types based on the 4 dichotomies:  Extraversion – Introversion  Sensing – Intuition  Thinking – Feeling  Judging – Perceiving  Used in areas of pedagogy, team building, leadership training, executive coaching  89 of the Fortune 100 companies use it.  Statistical Validity of this method is questionable. Origins from psychoanalysis and hence, speculative  The 16 outcomes appear to represent ‘pure’ types and it is unlikely people will be purely one of them. People can be extroverted in some situations and introverted at others; they may be capable of both objective and subjective thought  Doesn’t include any assessment of test-takers’ attitudes, so conclusions can be distorted
  • 16.
    SHL – OPQ32(Occupational Personality Questionnaire)  SHL’s Occupational Personality questionnaires provides an indication of an individual’s preferred behavioural style at work  Developed out of Item response theory containing forced choices method of questionnaires having 32 personality traits being measured in terms of their dominance  Used in selection, career development, team building etc.  SHL is one of the few providers of cognitive ability tests
  • 17.
    Predictive Index (PI) Skill and behaviour assessment test used by many organizations  Originally a Trait type of test based on the Humanistic Psychology of human drives  It measures four drives in Humans:  Drive for Dominance  Drive for Extroversion  Drive for Patience  Drive for Formality  Using these drives, there are selection based questionnaires on “What people expect of us to do” and “What we actually do”.  Using the answers of the question leads to the mapping of data on the basis of self, self concept and synthesis, which is represented graphically.  Actively used worldwide by major corporate giants for recruitment, leadership development and career- planning.
  • 18.
    DDI (Development Dimensions International) DDI’s pre- employment testing is a direct test which includes both normative and ipsative test manuals.  Multiple and repetitive questions ensure accuracy and validity of traits.  Eliminates the guesswork and helps in making the best decisions • Candidates with higher scores are top performers Better Hiring Decisions • Can quickly zero-in on the most eligible candidate Greater Process efficiency • Results pin-point candidates who are more likely to engaged and stay longer Most Eligible Candidate • Gives a very larger picture of the personality • Can be used for testing data and career development Complete picture
  • 19.
    India Inc. More than50% Organizations used, explored or considered psychometric tests Could increase to 87% by 2016 More than 90% of the companies which have adopted it, use it across all verticals However a large number of organizations, consider psychometric tools but don’t use the tools for reasons such as Cost Lack of knowledge in the domain Validity and reliability of these tools Selling psychometric tests to top management Lack of statistics showing value for money Reluctance of senior job applicants to fill out a test
  • 20.
    Expectations of theIndian Organizations • Provide differences in candidates • A test that can be used more often, on a large number of people, which is less costly • Clear on what the company is hiring for - competency framework for the company • Tools specific to Indian environment • Flexibility of an online system and cost effectiveness • A tool to provide specific training assessment and feedback • A tool which can address the issues of attrition by mapping employee traits
  • 21.
    Recommendation  Development oftools to address the menace of attrition should be prepared. Interviewing is not enough to gauge the factors of attrition. Implementing a psychometric screening tool that can predict and reduce attrition in addition to the selecting methods  A system to provide a low cost psychometric tool covering all the aspects  Successful implementation of psychometric tools other than recruitment, for competency mapping  There should be a tool which can map the ROI for recruitment