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SUMMER TRAINING REPORT

ON

STUDY OF IMPORTANCE ON PRE EMPLOYMENT TESTING IN

ITC LTD.
Submitted in partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Submitted By: -

Nishtha oberoi

60614901716

2016-2019

MAHARAJA SURAJMAL INSTITUTE

(AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)

C-4 JANAKPURI, NEW DELHI-110058

BATCH 2016-2019

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TABLE OF CONTENTS

S NO. DESCRIPTION PAGE NO.

1. STUDENT UNDERTAKING
2. CERTIFICATE
3. ACKNOWLEDGEMENT
4. EXECUTIVE SUMMARY
5. CHAPTER 1
INTRODUCTION
 OBJECTIVE
 RESEARCH METHODOLOGY
 LIMITATIONS OF STUDY
6. CHAPTER 2
PROFILE OF THE ORGANISATION
 COMPANY DETAILS
 PROFILE OF THE ORGANISATION
 VISION & VALUES
 CLASSIFICATION OF PROPERTIES OF ITC.
 FUNCTIONS AND DEPARTMENTS
7. CHAPTER 3
ANALYSIS AND INTERPRETATION
 NATURE AND SCOPE OF PRE EMPLOYMENT
 TYPES OF PRE EMPLOYMENT TESTING IN ITC
 ENVIRONMENT OF THE COMPANY BEFORE
AND AFTER PRE EMPLOYMENT TESTING

 FINDINGS OF PRE EMPLOYMENT IN ITC LTD

8. CHAPTER4 SWOT ANANLYSIS

9. CHAPTER 5 CONCLUSION
10. CHAPTER 6 BIBLIOGRAPHY

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STUDENT UNDERTAKING

This is to certify that I have completed the Project titled “STUDY ON IMPORTANCE OF
PRE EMPLOYMENT TESTING IN ITC LTD. ” under the guidance of Dr. POONAM
ALHAWAT in partial fulfillment of the requirement for the award of degree of Bachelor of
Business Administration at Maharaja Surajmal Institute , Delhi. This is an original piece of
work & I have not submitted it earlier elsewhere.

NISHTHA OBEROI

BBA (GENERAL)

Enroll. No. 60614901716

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ACKNOWLEDGEMENT

Sincerely.

I would like to express my sincere gratitude to Maharaja Surajmal Institute, I.P University, for
giving me the opportunity to explore this topic under the summer internship project.

My deepest gratitude to ITC LTD HOTELS DIVISION. for allowing me the opportunity to train
and work with the in-house HR department on the organisation’s HR systems and modules. To
work real-time on the systems and learning the about the HR operations of the organisation was
indeed a massive milestone in my personal and professional development.

A big thanks to the 2 pillars of my project – my respected project guides Mr.Sanjay Bose VP-
HR, ITC HDHQ) and Mr. Sumita (Project Manager, ITC Ltd), who despite their busy work
schedules, took time out to provide invaluable inputs (theoretical and practical) and advice, to
help make my project experience, a truly memorable one.
Thank you for the constant motivation and guidance through the course of the training.

My heartfelt thanks to all others at Maharaja Surajmal Institute , and ITC Ltd HDHQ. who
contributed directly/indirectly towards facilitating my project work and training.

Last but not the least, a big thank you to our Hon’ble Director under whose leadership, learning
and training opportunities such as these, have been made possible.

I expect to use the skill, knowledge and experiences gained in the course of the internship and
project work, to further fuel my aspirations and inch closer to attaining my professional goals.

Nishtha Oberoi

ITC HOTELS DIVISION

Date: 21/07/2018

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EXECUTIVE SUMMARY

ITC Ltd is one of the largest conglomerates. ITC Limited is an Indian company headquartered
Kolkata, West Bengal. Its diversified business includes five segments: Fast-Moving Consumer
Goods (comprising Foods, Personal Care, Cigarettes and Cigars, Apparel, Education and
Stationery Products, Incense Sticks and Safety Matches), Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business and Information Technology. Though, cigarette business
contributes more than 80% of the profits of the company, 80% of the capital is invested in the
non-tobacco businesses.

Established in 1910 as the 'Imperial Tobacco Company of India Limited', the company was
renamed as the 'India Tobacco Company Limited' in 1970 and later to 'I.T.C. Limited' in
1974. The dots in the name were removed in September 2001 for the company to be renamed as
'ITC Limited' where 'ITC' would no longer be an acronym. The company completed 100 years
in 2010 and as of 2012-13, had an annual turnover of US$8.31 billion and a market capitalization
of US$50 billion. It employs over 30,000 people at more than 60 locations across India and is
part of Forbes 2000 list.

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CHAPTER I

INTRODUCTION

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OBJECTIVES OF STUDY

• To analyze the recruitment process followed at ITC LIMITED

• To Study the environment of the company before and after pre employment testing
• To study The Method and steps followed to recruit new employees for various post
from selected sources.
• To let company save large amount of recruitment cost by scanning the employee
before interview.
• To study the long term benefits of pre employment in ITC

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RESEARCH SAMPLING AND DESIGN

RESEARCH DESIGN

. A detailed outline of how an investigation will take place. A research design will typically
include how data is to be collected, what instruments will be employed, how the instruments
will be used and the intended means for analyzing data collected

TYPE OF RESEARCH DESIGN

The research design is of two types:

1. Exploratory Research
2. Conclusive Research

I will use the Exploratory Research Design for the desired analysis since my project only
exploring the preliminary information that will help define problem and suggest hypothesis.

RESEARCH METHODOLOGY

Research methodology is the system of collecting data for research projects. The data may be
collected for either theoretical or practical research. For example: management research may
be strategically conceptualized along with operational planning methods and change
management.
Some factors in research methodology include validity of research data, Ethics and the
reliability of measures most of your work is finished by the time you finish the analysis of

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your data.
Formulating of research questions along with sampling weather probable or non-probable is
followed by measurement that includes surveys and scaling. This is followed by research
design, which may be either experimental or quasi-experimental. The last two stages are data
analysis and finally writing the research paper, which is organized carefully into graphs and
tables so that only important relevant data is shown.

There are two main types of research methodology:

Quantitative methodology: it is the type by which you test the significance of your
hypothesis, in other words you answer the words: How much? Is there a relationship?
Quantitative methods tend to be systematic and use numbers. Qualitative methodology: It is
the type by which you are depending on your observations and descriptions.

DATA COLLECTION

In dealing with any real lift problem it is often found that data at hand are inadequate, and
hence, it becomes necessary to collect data that are appropriate. There are several ways of
collecting the appropriate data which differ considerably in context of money costs, time and
other resources at the disposal of the researcher.

There are two types of Data:

Primary data: Primary data is important for all areas of research because it unvarnished
information about the results of an experiment or observation. It is like the eyewitness
testimony at a trial. No one has tarnished it or spun it by adding their own opinion or bias so
it can form the basis of objective conclusions. Primary data is the specific information
collected by the person who is doing the research. It can be obtained through clinical trials,
case studies, true experiments and randomized controlled studies. This information can be
analyzed by other expects who may decide to test the validity of data by repeating the same
experiments.

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Secondary data:.
Secondary data are the data collected by a party not related to the research study but
collected these data for some other purpose and at different time in the past. If the researcher
uses these data then these become secondary data for the current users. These may be
available in written, typed or in electronic forms. A variety of secondary information
sources is available to the researcher gathering data on an industry, potential product
applications and the market place. Secondary data is also used to gain initial insight into the
research problem. Secondary data is classified in terms of its source – either internal or
external. Internal, or in-house data, is secondary information acquired within the
organization where research is being carried out. External secondary data is obtained from
outside sources. There are various advantages and disadvantages of using secondary data

My research is concerned with secondary data

Advantages of secondary data:

Advantages of secondary data are following:

• The primary advantage of secondary data is that it is cheaper and faster to access
.
• Secondly, it provides a way to access the work of the best scholars all over the world.

• Thirdly, secondary data gives a frame of mind to the researcher that in which direction
he/she should go for the specific research.

• Fourthly secondary data save time, efforts and money and add to the value of the
research study.

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Disadvantages of secondary data

The data collected by the third party may not be a reliable party so the reliability and
accuracy of data go down
.
• Data collected in one location may not be suitable for the other one due variable
environmental factor.

• With the passage of time the data becomes obsolete and very old

• Secondary data collected can distort the results of the research. For using secondary
data a special care is required to amend or modify for use.

• Secondary data can also raise issues of authenticity and copyright.

Keeping in view the advantages and disadvantages of sources of data requirement of the
research study and time factor, both sources of data i.e. primary and secondary data have
been selected. These are used in combination to give proper coverage to the topic.

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LIMITATION OF STUDY

To carry out the research study the following limitations were expected and faced during the
research study:

(a) Availability of secondary data from sales records of the companies were difficult.

(b) Salesmen, customers, dealers and retailers were reluctant or hesitant to share data.

(c) Management may not like to share their views on the topic.

(d) Time, cost and location factors become major difficulties in completion of research

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CHAPTER II

PROFILE OF THE ORGANIZATION

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Company Details

Name of the Company :ITC Ltd Hotels Division

Director : Mr. Nakul Anand
CEO : Mr. Deepak Haksar
CFO : Mr. Jagdish Singh

Headquarters : ITC GREEN CENTRE, Institutional Area-10, Sector-32,

Gurgaon

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PROFILE OF THE ORGANISATION

Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has become
synonymous with Indian hospitality. ITC Hotels pioneered the concept of 'Responsible
Luxury' in the hospitality industry, drawing on the strengths of ITC groups' exemplary
sustainability practices. Responsible Luxury personifies an ethos that integrates world-class
green practices with contemporary design elements to deliver the best of luxury in the
greenest possible manner.
The Responsible Luxury commitment of ITC Hotels blends elements of nature to deliver a
unique value proposition to guests, conscious of their responsibility to be planet positive.
Today, these unique interventions have made ITC Hotels a trailblazer in green hoteliering
with all its premium luxury hotels LEED (Leadership in Energy and Environmental Design)
Platinum certified.

PROPERTIES OF ITC

ITC Hotels properties are classified under four distinct brands:

ITC Hotels has an exclusive tie-up with the 'Luxury Collection' for twelve of its hotels. ITC
Hotels - Luxury Collection are super deluxe luxury hotels located at strategic business and
leisure locations. The hotels which are part of this collection are: ITC Grand Bharat in
Gurugram. ITC Grand Chola in Chennai, ITC Maurya in Delhi, ITC Maratha in Mumbai,
ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor & ITC Gardenia in
Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra, ITC Rajputana in Jaipur
and recently launched ITC Kohenur in Hyderabad and ITC Grand Goa Resort and Spa in
Goa.
WelcomHotels offer five-star hospitality for the discerning business and leisure traveller.
Currently there are 14 hotels under this brand namely, WelcomHotel Dwarka - New Delhi,
WelcomHotel Bella Vista - Panchkula-Chandigarh, WelcomHotel Jodhpur - Jodhpur,
WelcomHotel Rama International - Aurangabad, WelcomHotel Vadodara - Vadodara,
WelcomHotel Grand Bay - Vishakhapatnam, WelcomHotelKhimsar Fort & Dunes -
Rajasthan, WelcomHotel The Savoy - Mussoorie, WelcomHotelKences Palm Beach -
Mamallapuram-Chennai, WelcomHotel Coimbatore, WelcomHotel Bengaluru, WelcomHotel
Chennai, WelcomHotel Pine N Peak and one Sheraton New Delhi Hotel - offer warm,
comforting services to the global traveller and a chance to connect.
Fortune Hotels operates mid-market to upscale properties in the first-class, full-service
business hotel segment all over India, in major metros, mini metros, state capitals and
business towns, promising business and leisure travellers a wide choice of destinations and
accommodation.

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WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a
unique experience. WelcomHeritageendeavours to preserve ancient royal homes and the
historical Indian grandeur and opulence for the future Indian generations. WelcomHeritage
provides a fine range of hotel services inside these architectural legacies present across India.

ITC is the greenest Luxury Hotel chain in the world.

VALUES
ITC CSR

ITC Hotels - Empowering Differently-abled people

ITC Hotels has established that if provided with an opportunity to work and become self-
sufficient, people who are differently-abled can significantly contribute to the workplace,
families and the community. ITC Hotels has taken a positive step in this direction by
employing people who are differently-abled across its hotels.
ITC Hotels believes that everyone should be treated with sensitivity and empathy. The
models it has created have been effective and have succeeded in sensitising other employees
to the needs of those differently-abled. Keeping in mind their specific skills, many differently
abled have been employed in diverse functions like housekeeping, teleworking, bakery and as
musicians.
Special badges for the visually impaired, whistles for hearing impaired employees to
communicate in an emergency and sign language classes for the staff to communicate with
them are just a few examples of how ITC Hotels has created an atmosphere of sensitivity and
caring.
ITC Hotels has also published a booklet aimed at sharing experiences with the rest of the
corporate world and laying down a step-by-step guide to demystify the perceived
complexities around employing persons with disabilities.

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FUNCTIONS AND DEPARTMENTS

Front Office – Experienced Staff with a demonstrated history of guest interactions, passionate
about interacting with people from different geographies &committed to retaining the guests
& giving them an unforgettable experience.

HR Function- Lead by Mr Sanjay Bose, the HR function of ITC hotels divisionis

thebackbone of the company. The team is committed to proving the best possible
environment to the employees. Team is also instrumental in providing labor law compliance,
record keeping, hiring and training, compensation, relational assistance and help with
handling specific performance issues.

IT &Finance : One the best IT teams amongst all ITC subsidiaries.The team in tandem with
ITC Infotech works round the clock to Deliver best possible IT solutions and systems to the
Hotels across the country for providing world-class guest experience. With experienced CAs,
CFAs & CSs, the cash inflow & outflow, purchases & other financial deliverables, finance
team is the most diverse and versatile with state-of-the-art systems and ,

Marketing :

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CHAPTER III

ANALYSIS & INTERPRETATION

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NATURE AND SCOPE OF PRE EMPLOYMENT TESTING

Traditionally, the hiring process has consisted of looking over paper applications, reviewing
resumes, conducting interviews and hiring the best candidate from the pool. Modern day
technology has arguably complicated that process. Now, you could be inundated with
hundreds of applicants for a single position making your best guess as you sift through the
pool to find the one perfect candidate you want to hire.

This is where pre-employment testing comes in. Pre-employment testing is a hiring tool that
is increasingly being used by employers to screen applicants. Also known as assessments,
pre-employment tests take hiring one step further by providing an additional screening
process for your applicants. These tests help you filter the best of the best and give you good
insight as to which candidate is more qualified for the position you are hiring.

Pre-employment tests are a standardized measurement tools that help ensure a safe,
productive, and satisfying work environment. Using them makes hiring a statistical and data
based decision that helps reduce risk of a bad hire and all of the ramifications that come with
it

Why choose it ?

So why are companies adopting the use of standardized pre-hire testing and hiring
assessments? Isn’t a few rounds of phone interviews and on-site meetings enough? As it turns
out, according to the Society of Human Resources Management, 53% of all job applicants lie
on their resumes, claiming credit for projects they weren’t actually involved in and
exaggerating their skills and accomplishments. The in-person interview provides only a very
quick and one-dimensional view into the candidate as a potential employee and is a better
measure of the employee’s charisma, charm and persuasive power than actual job
performance. Positive references that are provided to employers as a part of the background
check process are typically friends of potential candidates and do little to verify the
candidate’s actual qualifications and personality traits.
Because of this, many employers have adopted a customized approach to interviews, often
including a brief project, test, or working “case study” as a part of the recruitment process.
The problem with simply using tests, projects, and case studies is that they only measure the
candidate’s performance in one instance, on one project, and in the artificial
environment/situation that is created when a candidate is under pressure to “impress” the
hiring manager. Tests and case studies don’t truly show the full picture of the candidate, nor
do they capture whether the candidate is likely to succeed and stay in the role

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Types of pre employment testing used in ITC

1) Job Knowledge test

Job knowledge tests measure a candidate’s technical or theoretical expertise in a particular

field. For example, an accountant may be asked about basic accounting principles. These
kinds of tests are most useful for jobs that require specialized knowledge or high levels of
expertise.

2) Integrity tests
The story of pre-employment testing began with integrity tests. They can help companies
avoid hiring dishonest, unreliable or undisciplined people. Overt integrity tests ask direct
questions about integrity and ethics. Covert tests assess personality traits connected with
integrity, like conscientiousness.
If carefully constructed, integrity tests can be good predictors of job performance. Plus,
they’re less biased than other tests, as few differences have been spotted between people of
different age groups or race.

3) Cognitive ability tests

Cognitive ability tests measure a candidate’s general mental capacity which is strongly
correlated to job performance. These kinds of tests are much more accurate predictors of job
performance than interviews or experience. Workable uses a General Aptitude Test (GAT)
which measures logical, verbal and numerical reasoning.

4) Personality Test
Personality assessments can offer insight into candidates’ cultural fit and whether their
personality can translate into job success. Personality traits have been shown to correlate to
job performance in different roles. For example, salespeople who score high on extraversion
and assertiveness tend to do better.

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5) Emotional Intelligence tests

Emotional Intelligence (EI) refers to how well someone builds relationships and understands
emotions (both their own and others’). These abilities are an important factor in professions
that involve frequent interpersonal relationships and leadership. In general, tests that measure
EI have some predictability of job performance.

6) Skills assessment tests

Skills assessments don’t focus on knowledge or abstract personality traits. They measure
actual skills, either soft skills (e.g. attention to detail) or hard skills (e.g. computer literacy).
For example, a secretarial candidate may take a typing test to show how fast and accurately
they can type. Other examples include data checking tests, leaderships tests, presentations or
writing assignments.

7) Physical ability tests

Physical abilities tests measure strength and stamina. These traits are critical for many
professions (like firefighting). So they should never be neglected when relevant. By
extension, they’ll help reduce workplace accidents and worker’s compensation claims. And
candidates won’t be able to fake results as easily as with other tests

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FINDINGS OF PRE EMPLOYMENT IN ITC

.In general, remote testing is increasingly becoming the norm because the benefits of upfront
testing far outweigh the negatives. One reason is that cheating may actually be less common
than expected ITC conducted a study with one of its largest customers who administers
aptitude tests remotely at the front end of their hiring process, and then retests a select
number of candidates later onsite. When comparing the candidates' remote test scores with
their onsite test scores, the percentage of people who didn't take the test honestly offsite (i.e.,
without outside help) was actually quite small, much less than 2% of the applicant pool. This
may be because the company explicitly describes its retesting policy when they send
candidates the invitation to take the test. Being explicit about retesting eliminates the
incentive to cheat, because applicants will only be wasting their own time if they take the test
dishonestly.
A second reason some companies hesitate to use tests early in their hiring process is cost.
When companies link to a test from a job posting, they will likely get a huge number of
applicants taking the tests. If a testing service requires companies to pay per test, costs will
mount quickly. Therefore, if an organization does decide to administer tests remotely, it is
best to choose a provider that has a flat rate, unlimited use pricing model.

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How Much Testing is Appropriate?

After narrowing down the types of tests that are relevant for a position, and determining at
which stage of the hiring process tests will be administered, the next step is deciding how
many tests to administer. In order to attract the best talent, companies should be sensitive to
how candidates might perceive them. Because it is recommended to test early in the hiring
process, it's important to consider how much testing is appropriate when these tests will serve
as one of the first points of contact a candidate may have with an organization. But how much
testing is too much?
ITC analyzed a huge volume of data (about half a million tests) to help answer this question.
As the graph below makes clear, candidates complete tests much less frequently when the
length of the test exceeds 40 minutes.
Meanwhile, the completion rates for test batteries of less than 40 minutes in length always
exceed 75%. If this seems low, consider that many candidates encounter the test through a
link in a job posting, and may simply close the test window after deciding they don't have the
time, ability, or inclination to take the tests. Candidates who won't spend the extra time taking
the tests are probably less serious about the position in the first place, and filtering them out
at this stage is generally an asset for overburdened HR departments, unless their applicant-to-
hire ratio is very low. Interestingly, this 75%+ completion rate is no different for a very short
(less than ten minute) test than it is for a 30-40 minute test.

For example, if an employer wanted to hire an administrative assistant, he or she might

consider administering a test battery that includes a 20-minute basic skills test and a 15-
minute personality assessment. Using these two tests in tandem would capture a lot of
relevant information about each candidate while keeping the overall test time under 40
minutes. If more testing is needed, employers may want to wait until a later point in the
process and administer a second round of tests to the remaining candidates. Limiting test
duration to 40 minutes or under reduces the number of candidates who drop out of the
application process due to overly burdensome testing requirements.

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Testing Existing Employees

When implementing a pre employment testing program, how does a company determine the
appropriate scores to look for in the ideal employee?
ITC considered administering the tests to their existing employees in similar positions and
then using their scores to create benchmarks for their applicants, thereby tailoring target
scores to the current standards of the organization.
This benchmarking approach is unlikely to help small companies where the numbers of
incumbents in a given position are too small to yield significant results. For example,
benchmarking will not be meaningful if a company has only 4 customer service
representatives; in this type of case, it may be more efficient to rely on the data and insights
from the testing provider.
. For example, imagine a company is hiring medical assistants for a hospital. Medical
assistants are responsible for performing basic administrative duties as well as interacting
with patients and other medical staff. The company selects a basic skills test to assess verbal
skills, math skills, and attention to detail. It also selects a personality test to determine if the
candidates would work well with patients. To determine the scores it should be looking for in
its applicants, the company administers both tests to the medical assistants currently working
in the hospital. From there, the company's testing provider would be able to assist with
interpreting the data and setting appropriate suggested score ranges based on the gathered
data.

The goal is to demonstrate that the test is a valid predictor of performance for that particular
organization and for the specific position for which the tests are being used. When
performing local validity studies, it is especially important to examine the data as a whole,
and to do so in a statistically rigorous way.

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CHAPTER IV

SWOT ANALYSIS

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SWOT ANALYSIS

SWOT analysis is a basic, analytical framework that assesses what an entity — usually a
business, though it can be a place, industry or product — can and cannot do, for factors both
internal and external. Using environmental data to evaluate the position of a company, a
SWOT analysis determines what assists the firm in accomplishing its objectives, and what
obstacles it must overcome or minimize to achieve desired results: where the organization is
today, and where it may go

 Strengths describe what an organization excels at and separates it from the

competition: a strong brand, loyal customer base, a strong balance sheet, unique
technology and so on.
.
 Weaknesses stop an organization from performing at its optimum level. They are
areas where the business needs to improve to remain competitive: higher-than-
industry-average turnover, high levels of debt, an inadequate supply chain or lack
of capital

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STRENGTH OF PRE EMPLOYMENT TESTING

 Tests are more objective than other forms of assessment

Unstructured Interviews, resume screenings and pre-interview calls are ineffective
predictors of job performance. This is because recruiters and hiring managers often judge
candidates based on subjective, rather than job-related, criteria.

Tests work differently. If they’re well-designed, they can help you draw more objective
conclusions. Well-designed tests are valid (they measure what they are designed to measure)
and reliable (they produce consistent results).

 Tests are the same for everyone

Other assessment methods like screening calls and unstructured interviews can be unfair.
Interviewers ask different questions to different candidates and there’s no consensus on how
to rate candidates’ answers.

Tests, by contrast, are standardized and administered in the same way to all candidates. If
they’re crafted according to strictly job-related criteria, they give everyone the same
opportunity to succeed.

 Tests can save you time on interviews

Assessing 20 traits during an interview would be time consuming and exhausting for both
candidates and interviewers. You can assess some of these traits through pre-employment
testing instead.

It’s best to assess job knowledge through tests to avoid losing time interviewing candidates
who can’t do the job. You can also evaluate certain skills through tests like typing speed,
written communication or problem-solving.

 Tests allow you to rely on quantifiable insight

Sometimes experienced hiring managers have a gut feeling about certain candidates.
Unfortunately, this gut feeling isn’t always a good ally. It might lead them to the wrong
conclusions if it takes the form of unconscious bias. It’s also not legally defensible. If
candidates’ decide to file a lawsuit for discriminatory hiring practices, companies will have
difficulty defending their hiring managers’ vague assumptions.

Tests, much like structured interviews, give you something tangible to guide your hiring
decisions. They help you to be specific about your reasons for rejecting candidates, instead of
relying solely on intuition.

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 Tests can be strictly job related

Unless you’re using structured interviews, it’s easy to stray from job-related criteria when
interviewing candidates. But, tests can be designed to focus solely on what really matters
for the job.

That depends on the type of test, though. One of the most popular personality tests, the
Myers-Briggs test, is unable to predict job performance (or personality, for that matter). It’s
best for companies to avoid it. Other tests, like Gallup’s StrengthsFinder and 16PF, can be
better options.

WEAKNESS OF PRE EMPLOYMENT TESTING

Tests rarely give the whole picture

Each test usually measures a handful of traits. This means that they neglect to assess
important details. For example, job knowledge tests are good at assessing job specific
knowledge. But, they don’t take into account how willing (or able) someone is to learn and
improve. Candidates might have never used CRM systems before but they could learn
quickly. Other candidates might have deep knowledge of such systems but could be unwilling
to try new technologies. Test results alone won’t necessarily tell you who’d be the best
candidate for your company.

To assess more traits, you will have to use multiple tests. There’s a risk that this will annoy or
exhaust candidates. They might stop trying to give honest or thoughtful answers if they’re
tired of taking copious amounts of tests.

Tests can be discriminatory

This seems to be a paradox, since tests are relatively objective. But cognitive ability and
knowledge tests can disproportionately screen out non-white candidates. This can result in
costly lawsuits. One example is a 2012 discrimination case where a company had to pay
$550,000 in back wages to minority workers it rejected through a pre-employment test.

Some personality and physical ability tests can break anti-discrimination laws, if they’re
trying to ‘diagnose’ a mental or physical condition that’s unrelated to the job. For example, in
2006, the Equal Employment Opportunity Commission (EEOC), won a lawsuit against a
company that screened out female applicants through a ‘strength’ test.

Tests invite lies

Drug tests can’t be easily faked but that’s not necessarily true for all tests. For example, if
you ask candidates to complete an integrity and work ethics test, then you can expect
candidates to occasionally fake their answers. This doesn’t always happen consciously.
People tend to present themselves in the best possible light (called social desirability bias).

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We all do it. And we’re more likely to misrepresent ourselves when a job is at stake. For
example, extraversion is usually highly valued in the workplace. If a personality test asks
candidates to rate their social skills, you can expect that few candidates, if any, will rate
themselves as anti-social.

Tests (and their results) are often ambiguous

Integrity tests are a good example. You might have come across one that asks you to indicate
whether you agree or disagree with statements like “morality is important.” But how can you
be sure there will be consensus among candidates on what this sentence means? Some people
might think it means treating others fairly. But others might associate morality with religion.
This kind of ambiguity can give you unreliable results.

Tests result in longer time-to-fill

Giving one 20-minute test to all shortlisted candidates can slow down your recruitment
process by several days. If you add various types of tests and an assignment (which is
generally a good idea), prepare yourself for a lengthy process. It’s still worth it though, since
tests can improve quality of hire.

Tests assume unique people are made through molds

People have many things in common. But, there are also many things that make us different.
Tests can’t capture this variation. They assume we all respond the same way to situations and
statements.

Companies usually look for culture fit and tests can help them hire people made from the
same mold. But, this approach doesn’t always work. It might be more

OPPURTUNITIES:-

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CHAPTER V

CONCLUSION

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CONCLUSION

Pre-employment testing can help to predict quality of hire, under some conditions. Here are
the three most important:

 Tests should be legal. Discriminatory tests can damage companies. There are ways to
monitor tests’ outcomes. For example, you can calculate the yield ratios of the testing
phase. If you find that you disproportionately reject protected groups, you should stop
using the test. Also, if you want to use pre-employment drug screening, you should know
about any relevant legal guidelines.

 Tests should be job-related. Questions should measure strictly job-related traits that
companies have identified through job analysis. It’s best to assess only the ‘must-haves’
for a position. It’s also best to use separate tests for unrelated positions. It wouldn’t make
much sense to test office clerks using a case study for sales representatives.

 Tests should be well-validated. The law doesn’t prohibit companies from using tests
that hiring managers make up on the spot (as long as they’re not discriminatory). But,
tests are only worth the trouble if they can actually predict job performance.

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