hbl assignment

8/12/2019 HBL assignment

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Submitted To:

Mam, Sana Saleem

Submitted By:

Sonia Arif # 50

4 th Semester

DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES

UNIVERSITY OF A RI!U"TURE

FAISA"A A$

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Dedicated to al mighty Allah for giving usstrength blessings our Teachers and

Parents.

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Executive Summary

Psychometric tests can play a very useful role in both the assessment and the

development of individuals. They are written, oral or practical tests that quantify the

different human behavior. Five essential features of these tests are validity, reliability,

standardization, objectivity and differentiation. The three basic types are aptitude

testing, ability testing, personality profiling, they can give objective evidence of the

human attributes they measure, and have been shown to be one of the best predictorsof job performance when used in selection. In practice, they will generally be used in

conjunction with other methods such as interviews in order to give the whole picture .

Increasing, organizations in Pa!istan are using psychometric tests for recruitment,

training " development and performance management. They are also helpful in

increasing the commitment of employees with their organization. In this research, the

#abib ban! limited is analyzed and it is seen that how psychometric tests are important

for the ban! and how these tests influence the #$% wor!ing and performance. &fter a

detailed analysis and concluding remar!s, few pertinent recommendations for the

effective use of psychometric testing are made.

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LIST OF CONTENTS

Heading# TITLE PAGE

I Intro%&'tion 0(

II Metho%olo)* +(

III Fin%in)s -

IV ra.hi'al Re.resentation

V In%&strial Anal*sis 44

VI"earnin) 4/

VI I Re'ommen%ations 4

VI I I !on'l&sion 5-

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Intro%&'tion1Psychometric tests are tools for measuring the mind ('metric' = measure; 'psycho' =

mind). They are basically tools-that may be good or bad depending upon whether they

are being used or abused 2 The use is related to the particular purpose on which they

are being employed, what ind of information can it pro!ide to the person or about the

person , how results are s illfully interpreted and how they are meaningfully integrated

into the data , leading to worthy action decisions.

Psychometric tests are designed to pro!ide a consistent and effecti!e measure of

people's traits, abilities, s ills, and interests. The ability to measure these characteristics

enhances decision ma ing during recruitment and selection, indi!idual and team

de!elopment, organi"ational change and career directions. Psychometric tests can be

used to predict #ob performance, resol!e conflict, impro!e communication, ma e career

decisions and to identify training needs, so on and so forth.

The use of Psychometric tests to select both e$ecuti!e and staff le!el employees is

%uite popular. &t is necessary to ha!e reliable and !alid tools that are able to

discriminate between the most potentially-effecti!e employee and the one who will not

fit the #ob. Psychometric assessment is an ob#ecti!e and scientific tool that is able to

contribute to the !alidity and successful outcome of the recruitment, selection and

de!elopment process. The Psychometric tests are de!eloped for specific role. &t

assesses !erbal and numerical chec ing s ills, for the clerical #obs there are test which

is designed to chec the !erbal, numerical, office !ocabulary, and the ability to plan and

organi"e. The companies also ha!e tests for technical #obs such as technical chec ing

and faultfinding, nowledge of electronics, and the ability to comprehend diagrams.

Tests would assess the differences between indi!iduals or between the reactions of the

same indi!iduals under the different circumstances.

The emergence of computers has also made the assessment process user friendly and

with hoo up to the internet the profile of the candidate in!ol!ing his proficiency in

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mathematical problems, comprehension or attitudes will be displayed instantly with

specific recommendations hire or do not hire or may be hire.

Relia3ilit* is the internal consistency of a test. The consistency of scores obtained by

the same person when retested with the identical test or with an e%ui!alent form of thetest. &t means accuracy. &t shows ow good is this test*. Test-reliability is the

consistency of scores obtained by the same person when retested with the identical test

or an e%ui!alent form of the test. +elati!ely high degree of reliability is re%uired to ma e

accurate predictions from the test about the indi!iduals.

Vali%it* refers to the degree to which the test actually measures what it purports to

measure. &t means purpose or truthfulness of the test. &t pro!ides a direct chec on how

well the test fulfills its function. The construction and use of test imply that the

instrument has been e!aluated against criteria regarded by e$perts as the best

e!idence of the traits to be measured by the test.

A norm is an a!erage, common, standard performance under e$perimental conditions.

any of the psychological tests usually tend to ha!e norms. They ha!e to be accurate.

orms are in the form of age, grade, percentile ran , sten scores, stanine scores. The

norms should be meaningful with regard to purposes for which the test is intended and

to the group of persons with whom it is to be used.

Categories of Psychometric Testing:

Psychometric testing falls into three main categories

. /ptitude testing

0. /bility testing

1. Personality profiling

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A3ilit* testin)

/bility tests measure a persons potential, for instance to learn the s ills needed for a

new #ob or to cope with the demands of a training course. /bility tests are not the same

thing as Tests of /ttainment.

Tests of attainment assess specifically what people ha!e learnt e.g. mathematical ability

or typing s ills. 2f course what people ha!e learned does depend on their ability in that

domain in the first place so the scores on the two types of test are conceptually lin ed.

The ma#or difference between tests of ability and tests of attainment is in the way thescores from both types of test are used. any ability test items loo identical to those on

attainment tests but attainment tests are different in one crucial respect - they are

retrospecti!e they focus on what has been learnt and on what a person nows and can

do now. /bility tests are prospecti!e they focus on what the person is capable of

achie!ing in the future or their potential to learn.

3ear in mind that some attainment is re%uired before certain abilities can be measured,

for instance, we need a certain nowledge of mathematics before our numerical ability

can be measured. &n addition a test of attainment cannot be used to directly infer ability.

4chool e$aminations are one e$ample of measures of achie!ement or attainment, and

while we might draw some conclusions about an indi!idual's ability on the basis of

5647 results we would not use them as a direct measure of ability since a less able

student may wor harder than a more able student to produce a better score.

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5eneral ability is usually di!ided up into specific abilities, reflecting the hierarchical

structure of intelligence that is generally accepted by most wor ers in the field. 4o a

general ability test might be composed of specific numerical, !erbal and spatial ability

scales brought together as a test battery. They can then be scored and interpreted

indi!idually as a specific ability or aptitude measure, or together as part of a general

ability measure.

A.tit&%e testin)1

There is no widely accepted definition of the difference between ability and aptitude.

ost people would agree that to some e$tent the two terms refer to the same thing

aptitude referring to specific ability, and ability referring to general aptitude. 8e could

probably !iew ability as underlying aptitude, and aptitude as being more #ob related thenability. 9or instance a computer programmer might score highly on a !erbal ability test

and highly on a programmer aptitude test but not the other way around.

/ptitude tests tend to be #ob related and ha!e names that include #ob titles such as the

Programmers /ptitude 4eries (4 :). /bility tests on the other hand are designed to

measure the abilities or mental processes that underlie aptitude and are named after

them e.g. 4patial /bility - 5/T (/47).

/n ability test such as the 5eneral /bility Test (5/T) is made up of four tests of specificability - numerical ability; !erbal ability; non-!erbal ability and spatial ability. They can be

used separately to assess specific abilities or together to assess general ability. There

are tests which measure only general ability such as the 4tandard Progressi!e atrices

(which is one of the purest measures of general ability a!ailable) and there are tests

which only measure specific abilities such as the /67+ echanical +easoning Test.

ou will find with e$perience that some tests fall into more than one category and that

the distinction between the !arious categories is not always an easy one to define.

ersonalit* .rofilin)

Personality is a term which is commonly used in e!eryday language but which has been

gi!en a particular technical meaning by psychologists. 8hen we discuss personality we

must remember that it is not a single independent mechanism but closely related to

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other human cogniti!e and emotional systems.

7!en if one scores well in aptitude tests it doest not mean that one will be suited to a

#ob. 2ne can be good at doing something but may hate to do a #ob which depends on

one's personal characteristics and %ualities. Personality &n!entories can assess itemson a !ariety of personality aspects such as

-- ow you relate to other people

-- our wor style

-- our ability to deal with emotions (your own and other people's)

-- our moti!ation, determination and general outloo

-- our ability to handle stressful situations


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O3 e'ti6es1

8hy psychometric tests are important

ow can they add !alue to +

ow psychometric tests help the applicant to con!ince the employer

ow they influence the producti!ity of the employees

The use of psychometric tests in Pa istan especially in ban ing sector

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s*'hometri' Tests A%% Val&e To 7R1

Hiring of Employees:

/s psychometric testing becomes more popular in candidate e!aluations, the benefitsfor both the employer and applicant are becoming clearer. There are many benefits to

these e!aluations for both the employer and the applicant. 3oth groups of people try to

use the test to their ad!antage and both are e$tremely capable of doing so.

8hen deciding between two or more e%ually comparable candidates for a position, the

employer might want to use the results of the ob#ecti!e psychometric test to determine

which is most compatible for the #ob. 2ne person may ha!e a slight edge o!er another

in personality or ability which may lead to the best candidate being hired.

iring applicants who ha!e had career switches or who ha!e a prior record of %uitting

#obs may be a hard to do. owe!er, using the results of a personality and ability

assessment, an employer might be better able to determine whether or not the applicant

is li ely to wal out on another #ob or if this #ob is truly what they ha!e been see ing.

ost importantly, psychometric testing pro!ides employers with an insight into an

applicant's psychology that could otherwise ta e years to determine. &t can help show

the employer who the applicant would be most compatible wor ing with and what types

of pro#ects the applicant might be best able to accomplish. 3asically, the testing can

help show the employer what the applicant is truly capable of.

&n some cases, there are many applicants who all appear to be similarly %ualified

through inter!iews and general hiring strategies. 8ith the use of psychometric testing,

the employer can narrow down the scope of prospects through completely fair and

ob#ecti!e measures and can use the results of the test to help supplement thesub#ecti!e ness of con!entional hiring mechanisms.

The use of personality and ability assessments can also help the applicant to con!ince

the employer that they truly are the most suitable candidates for a #ob. 2f course there

is only so much one can say during an inter!iew and trying to balance modesty and

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confidence is %uite a challenging feat. 9ortunately, the use of an ob#ecti!e measure can

help demonstrate the applicant's compatibility.

4ome applicants may find that it is difficult to truly e$press them when under pressure.

9or these types of applicants, personality assessments are e$tremely beneficial. &t mightbe the case that the applicant is so ner!ous that the employer may ha!e some

s epticism about the applicant's personality. &f this is the situation, the ob#ecti!e

personality assessment may help resol!e the s epticism and pro!ide !aluable feedbac

to the employer that might not otherwise be recogni"ed in the inter!iew alone.

&n some cases, the use of psychometric testing can help eliminate competition. 9or

employers loo ing hea!ily at the test results, some applicants may be released because

they do not fit the profile of a compatible candidate. This is e$tremely beneficial toapplicants who may feel as though their inter!iew did not go as well as planned but still

hope to show that they are indeed the best applicant by ob#ecti!e measures.

5enerally, Psychometric testing is the more ob#ect measure in the hiring process. 8hile

some people are better able to use charm and wit to their ad!antage, some are not.

>uring the hiring process it is nice to ha!e at least one mechanism of ob#ecti!eness that

can help compensate for the employer's ability to be charmed.

Psychometric testing has the capabilities of being beneficial to e!eryone. /s long as

both groups see the benefits of the tests, both groups ha!e the capabilities of using

them to their ad!antage.

Training and Development

Training and de!elopment can be initiated for a !ariety of reasons for an employee or

group of employees, e.g., 8hen a performance appraisal indicates performance impro!ement is needed

To benchmar the status of impro!ement so far in a performance impro!ement

effort

/s part of an o!erall professional de!elopment program

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/s part of succession planning to help an employee be eligible for a planned

change in role in the organi"ation

To pilot , or test, the operation of a new performance management system

To train about a specific topic

6ompanies pro!ide specific training to employees according to their needs, personality

traits and these traits e.g. intro!ert people, asserti!eness can be identified by the

psychometric testing which enables organi"ation to identify the training needs for the

employee.

Training benefits the organi"ation in the following way;

&ncreased #ob satisfaction and morale among employees

&ncreased employee moti!ation

&ncreased efficiencies in processes, resulting in financial gain

&ncreased capacity to adopt new technologies and methods

&ncreased inno!ation in strategies and products

+educed employee turno!er

7nhanced company image, e.g., conducting ethics training (not a good reason

for ethics training?)

+is management, e.g., training about, di!ersity training, etc

Performance Management:

Performance management includes acti!ities to ensure that goals are consistently being

met in an effecti!e and efficient manner. Performance management can focus on

performance of the organi"ation, a department, processes to build a product or ser!ice,

employees, etc.

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The easiest way to impro!e performance is to identify the best people and replicate

them. Too many businesses do not really now who their best people are. They must

use measurable criteria to identify their top performers .

The organi"ations as super!isors to e!aluate employee s performance by either

ran ing or rating employees on a no of predetermined dimensions, traits or beha!iors.

>ifferent methods are used to rate the employees e.g. graphic rating scale. 3eha!iorally

anchored rating scales (3/+4) and the beha!ioral chec lists. Person who rate

performance is supposed to b fair and a!oid rating errors such as leniency, se!erity,

halo effect etc. &n Pa istan, most of the organi"ations are using the 1@A feed bac .

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Users of s*'hometri' Testin)1

&siness O8ner1 3usiness owner would use psychometric testing to find the person

who is the right fit for the #ob. &t helps them minimi"e costly hiring mista es and sa!eyou money.

Re'r&itment !ons&ltant1 They use psychometric testing mainly to impro!e placement

success.

Mana)er1 - /n employee may #oin the company for !arious reasons, but it is their

relationship with their manager that determines how long they stay. anagers play a

significant role in influencing the employee s commitment le!el and retention. 5oodrelationship s ills helps the manager produce better performance, and gi!es the

employee greater #ob satisfaction and higher moti!ation, thereby producing more

effecti!e managers.

!oa'h or Mentor1 5ood coaches understand why people act a certain way and beha!e

the way they do. They now their clients personality style. This leads to effecti!e

communication and goal setting.

Sales .erson1 4ales people who build great relationships with their customers ha!e the

greatest rate of success. 4ales people use psychometric testing to help them

understand each customer s buying style and change their selling style accordingly.

!areers A%6isor1 Psychometric testing helps match the student s personal style and

talents with suitable career choices. &t ta es a holistic !iew of career management and

helps the student find their natural talents.

arent 1 Psychometric Testing will help the parents to understand their children better

and easier way to handle them. &f their child is bursary le!el and need to start loo ing at

career choices, these tests are a way to help them.

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St&%ent1 othing is as important as choosing the right career for you. 2ur tests are an

e$cellent tool in helping you.

!areer 'han)e1 &f someone lac s that something e$tra in his career, or sometimes wish

him was somewhere else instead of at wor , he needs to ta e a test to find out where

he belong. e can use it to disco!er his uni%ue talents and gifts. /nyone can benefit by

it.

Im.ortan'e Of s*'hometri' Tests1

s*'hometri' tests ha!e been used since the early part of the 0Ath century.

They were originally de!eloped for use in educational psychology. These days,

outside of education, psychometric testing has ta en an entry into the business

world .

s*'hometri' tests are a way of assessing a person's ability or personality in a

measured and structured way. They are used to measure the indi!idual

differences such as ability, aptitude, interests, personality and other aspects.

s*'hometri' testin) gaining popularity in organi"ations Psychometric tests are

de!eloped especially to reduce the problems encountered by employees andmanagers. 4uch as, one of the biggest problems employers face today is the

%uality of the staff they hire. The reason is easy to understand; inter!iews don't

necessarily gi!e the right picture about the candidates. &nter!iewee's generally

come with some prepared %uestions and in the short time a!ailable it is difficult to

#udge a candidate's capabilities. / bad-hiring decision can be costly and time

consuming.

s*'hometri' assessments play an important role by being consistent and

impartial and they can enhance the ob#ecti!ity of the selection process. They are

standardi"ed in terms of the %uestions as ed, the time allowed, and instructions

gi!en, which means all candidates are placed on an e%ual footing, ma ing the

assessment fair and ob#ecti!e. 3y reducing selection errors, organi"ations can

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reduce staff turno!er, training costs, lost opportunities and stress to indi!iduals.

4o this is the reason psychometric testing has now become widely accepted as a

benchmar ing tool in the selection process.

Psychometric Tests Aim at 10 Top Organi ational!enefits 1

-2 Attra't 3etter staff

&t is now widely accepted that organi"ational success is to a large e$tent dependent on

the hiring and moti!ating of talented staff. Psychometric testing is as much about

liberation as it is about putting people into bo$es. 8hen it is used well, it helps

indi!iduals to become more self-aware, and this psychological well-being is moti!ational

for e$isting staff, and attracti!e to potential staff.

+2 Ma9e sele'tion more o3 e'ti6e

Psychometric testing forces + to thin more clearly about roles, what attributes those

roles re%uire, and what those attributes specifically mean. &t also reduces dependence

on inter!iews, with se!eral accompanying benefits. 2b#ecti!e facts become as important

as interpersonal relationships in selection, and companies a!oid the trap of using

inter!iews as a way of finding people who are the same as those who already wor

there

2 Re%&'e sele'tion mista9es

iring the wrong staff is costly. /d!ocates of psychometric testing claim that it ma es

selection more accurate. arina /ldridge, head of re sourcing and recruitment at The

/udit 6ommission, e$plains why she uses it for graduate recruitment. 8e spend a lot

of money on training graduates. &t is important to be able to predict which ones will pass

their BauditC e$ams in four years' time. 8e e$pect the new tests we are introducing will

gi!e us a much clearer idea of which candidates will succeed.

42 "o8er re'r&itment 'osts

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3y weeding out more candidates before in!iting them to inter!iew, an organi"ation is

able to lower tra!el e$penses and administration costs. 7!en more significantly, it is

possible to reduce the time senior e$ecuti!es spend inter!iewing candidates.

52 Minimi:e le)al ris9s

Psychometric testing can also reduce the ris of being sued by candidates claiming they

were re#ected for reasons other than competence or suitability.

(2 Re'r&it faster

3y pre-screening candidates using an online system of psychometric tests, an

organi"ation can speed up its recruitment process. 3y using online testing,

organi"ations can reduce the hiring time.

/2 Meas&re the re'r&itment .ro'ess

Pro!ing the effecti!eness of a hiring strategy is always difficult. 4coring helps to pin

down something ephemeral and the scores can assist employers in ma ing a fairly clear

return on in!estment calculation of the effecti!eness of psychometric testing. They can

particularly do this when they hire a lot of staff, can distinguish clearly between good

and a!erage performers, and when good performers produce considerably more !aluefor the organi"ation than a!erage and poor performers.

;2 Im.ro6e 're%i3ilit*

4imply using psychometric testing tends to impro!e the credibility of the process. 2ther

departments recogni"e that + is ta ing a more 'scientific' approach to the hiring

process. &t ma es it clear to candidates that the roles, and the person in it, are !alued.

&n!estors and customers may also be impressed. 3ut 5wyn +ogers, director of Daisen6onsulting, points out the dangers of relying too hea!ily on it as a result. 6redibility

plummets when ma#or decisions are made solely on the basis of psychometric testing,

she says.

2 &il% teams

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Psychometric testing allows indi!iduals to find out about their own strengths and

wea nesses, and also about those of the people around them. This promotes more

effecti!e wor ing relationships and impro!es team performance. 3ecause by introducing

people to an issue and to different ways of approaching it can ha!e a real impact on

interactions in the wor place.

-0 Enhan'e mana)ement an% %e6elo.ment

&n the same way, managers are li ely to communicate better and ha!e a clearer

understanding of the needs of employees. Training and management in some

organi"ations is often focused on less talented staff. Psychometric testing can enable

an organi"ation to use its training and management budget more efficiently by focusing

on the staff with the most potential. /t the !ery least, it pro!ides a clear and ob#ecti!e

basis for a con!ersation about indi!idual de!elopment.

"ome Disadvantages#

&nternal candidates for #obs can sometimes feel disgruntled because they are

being treated in the same way as e$ternal candidates

4ome candidates may be ner!ous about testing and will need to be put at theirease

4ome tests are more comple$ to score; training is re%uired for administration and

interpretation

The initial set-up can be costly, including the initial purchase of re-usable

materials and training of test administrators and interpreters

There may be an initial resistance to using tests, often based on misconceptions, which needs to be o!ercome before they can be successfully introduced into an

organi"ation

Tests may not be able to measure the 'whole candidate' and will typically be used

in con#unction with other information

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s*'hometri' Testin) in a9istan1

8orldwide, most of the companies are using this type of tests. :i e in


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Poor implementation of test

:ac of awareness


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7a3i3 an9 "imite%13: was the first commercial ban to be established in Pa istan in KLE. 2!er the

years, 3: has grown its branch networ and become the largest pri!ate sector ban with o!er ,LFA branches across the country and a customer base e$ceeding fi!e

million relationships. &t is fully automated and computeri"ed and pro!iding wide range of

ban ing ser!ices.

8ith a presence in 0F countries, subsidiaries in ong Dong and the


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7$perience

3eha!ior

&nterpersonal M 6ommunication s ills

&or Training $ Development:

3: focus is on attracting, de!eloping and retaining the best employees in

compensation and benefits pac ages. Their compensation and benefits strategy

combines the need to maintain a high performance culture along with mar et

competiti!eness. 3: arranges training programs according to the needs of theemployees and according to their traits.

Performance Management "ystem:

/t 3: growth is not a function of time but rather of performance. 3: belie!es that as

the performance of employees impro!es, the role that they play within the organi"ation

will accelerate to reflect the input. 3: s performance management and reward systems

ensure that goals are met in an effecti!e and efficient manner. 9or impro!ing the

performance management system, it also uses psychometric tests to chec the

performance of the employees and for rewarding the employees accordingly. 3:

defines a clear path for employees to contribute to the organi"ation s o!erall goals,

peppered with regular re!iews and feedbac to help them to gauge their progress.

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Metho%olo)*

"ampling:

The sampling population of this research includes F managers of different

branches of 3: in 9aisalabad. These branches are

3: PT6: 3uilding 3ranch

3: 4tayana +oad 3ranch

3: +egional ead Nuarters

3: ata has been collected through %uestionnaire in this research.

Nuestionnaire has been designed by eeping in

mind the ob#ecti!es of research pro#ect. &t is di!ided into different parts to get the

data and information to meet the ob#ecti!es of the pro#ect. & selected different

!ariables to study the potential sources and effects of psychometric tests on the

ban ing sector. & also studied how they influence the + functions.

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===================2===============2

(Please read the statement and indicate the le!el of agreement according to the gi!en scale)

-2 $o *o& feel that .s*'hometri' test a%%s 6al&e to 7R .ra'ti'es?

) 4trongly >isagree 0) >isagree 1 ) either /gree nor disagree L) /gree F) 4trongly agree

+2 $oes *o&r 3an9 rel* on .s*'hometri' testin) for .re em.lo*ment s'reenin), staff

%e6elo.ment, team3&il%in), mana)ement trainin) an% lea%ershi. trainin)?


2 $o *o& feel that s*'hometri' tests .ro6i%e a 'onsistent an% effe'ti6e meas&re of

.ersonal@s traits, a3ilities, s9ills, an% interests?


42 $oes .s*'holo)i'al test is essentiall* an o3 e'ti6e an% stan%ar%i:e% meas&re of a

sam.le of 3eha6ior?


52 !an *o& &se s*'hometri' test to .re%i't a3o&t em.lo*ee s o3 .erforman'e, ma9e

'areer %e'isions an% to i%entif* trainin) nee%s, so on an% so forth?


(2 $o tests assess the %ifferen'es 3et8een in%i6i%&als or 3et8een the rea'tions of the

same in%i6i%&als &n%er the %ifferent 'ir'&mstan'es?


/2 $o *o& a)ree that the res&lts of .s*'hometri' tests are 3etter than the tra%itional

testin) metho%s e2) inter6ie8?

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;2 $o *o& feel that the res&lts of .s*'hometri' testin) are fairer than other tests?


2 $o *o& thin9 that the &se of .s*'hometri' tests for sele'tion .&r.oses ha6e 3een

in'rease% in re'ent *ears?


-02 $o .s*'hometri' tests in the normal re'r&itment .ro'e%&re in'reases the s&''ess

rate of the re'r&itment?


--2 $oes *o&r 3an9 &se .s*'hometri' tests to sele't 3oth mana)erial an% staff le6el

em.lo*ees?


-+2 Is the %e6elo.ment of .ersonnel is another ma or a..li'ation of .s*'hometri'

testin)?


- 2 $oes *o&r 3an9 &se .s*'hometri' tests for .erforman'e mana)ement?


-42 $o .s*'hometri' tests .ro6i%in) &.BtoB%ate information on s9ills s&'h as C&antitati6e

reasonin) of em.lo*ees 8hi'h 'om.lement C&alifi'ationB3ase% e6i%en'e?


-52 $o *o& feel that .s*'hometri' tests in'rease the .ro%&'ti6it* of em.lo*ees?


-(2 Is there a si)nifi'ant %ifferen'e in .s*'hometri' test &sa)e 3et8een lar)e an% small

or)ani:ations?


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-/2 $oes it ena3le 3an9 to i%entif* trainin) nee%s for or)ani:ation?


-;2 $oes trainin) eD.erien'e .ro6i%e hi)h retention rates?


- 2 Is it a fa't that or)ani:ations 8ith lar)er trainin) eD.en%it&res &se .s*'hometri'

testin) more than those 8ith smaller eD.en%it&re?


+02 $oes the ele'troni' .s*'hometri' testin) ma9e this .ro'ess more effi'ient an% &ser

frien%l*?


+-2 $o *o& thin9 that .s*'hometri' testin) im.ro6es em.lo*ee s or)ani:ational

'ommitment?


++2 $o *o& see that the )ro8th of .s*'hometri' tests 8ill 3e in'rease% in f&t&re *ears?


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. Main Fin%in)s


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Psychometric tests impro!e the producti!ity of the employees by increasing the

efficiency and effecti!eness of the wor ers in the organi"ation. HAG respondents

are agreed to this statement.

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ra.hi'al Re.resentation

s*'hometri' Tests a%% 6al&e to the 7R .ra'ti'es

Psychometric Tests

strongly 'isagree

'isagree

(either &gree nor 'isagree

&gree

)trongly &gree

&t is hypothesi"ed that the use of Psychometric Tests adds !alue to the + practices,

the results support this statement. There is a significant relationship between the use of

psychometric tests and the !alue added to + practices. LAG managers are strongly

agreed to this statement and @AG are agree, no one is disagree to this statement. &t

shows that all managers of different branches ha!e positi!e !iews about this

relationship that psychometric tests are necessary to add !alue to the +.

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!onsistent Effe'ti6e Meas&re of ersonnel s Traits,

A3ilities, S9ills an% Interests, 3eha6iors1

EFG people are agreed to this statement and AG are strongly agreed, they

belie!e that psychometric tests pro!ide a consistent and effecti!e measure of

personnel s traits, abilities, s ills and interests. AG are opposed to this

statement, they are disagreeing. owe!er, FG are neither agreed nor disagreed

to this !iew point.

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s*'hometri' tests are 3etter fair in res&lts than tra%itional

testin) metho%s1

Psychometric Tests

)trongly 'is agree

'isagree

(either &gree nor 'is agree

&gree

)trongly &gree

/lmost EAG management belie!es that psychometric tests are better than

traditional testing methods li e inter!iews, etc. /nd their results are fairer than

other test, that s why their use in recent years has been increased. 2nly 1A Gare neither agreed nor disagreed to this statement, they are uncertain about this

statement.

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s*'hometri' Test Ser6es As a Usef&l Tool For

Re'r&itment Sele'tion ro'ess1

@EG managers are agreed to the statement that psychometric test is a useful tool for

recruiting and selecting the candidates, and it lea!es positi!e influence on these

processes and EG are strongly agreed to it. 1G are disagreed to this statement. /nd

1G are neither agreed nor disagreed to this statement.

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s*'hometri' tests .re%i't a3o&t em.lo*ee s

.erforman'e, ma9e 'areer %e'isions, so on an% so forth1

Psychometric Tests

strongly 'isagree

'isagree


&gree

)trongly &gree

anagers ha!e difference in opinion about the statement that employee sperformance, career decision, etc are predicted by psychometric tests. LAG are

agreeing to this !iew point, LAG are disagree and 0AG are strongly agree to this

statement. The managers who are disagree to this statement belie!es that it

does not properly wor s in Pa istan so, it does not properly predict about the

performance issue, career decision etc. People do not get #ob according to their

D4/s in Pa istan, mostly people in 3: are not wor ing according to their

degrees, speciali"ations and s ills. &t is the normal trend which e$ists in Pa istan.

4o, these tests will not show proper outcome in Pa istan. &t will not help out the

employees to ta e right decision about their career. owe!er ma#ority is agreed

and strongly agreed to this statement. They belie!e that these tests are positi!ely

influence these issues.

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s*'hometri' Tests Are Relia3le For The $e6elo.ment

Of ersonnel1

Psychometric Tests

)trongly 'isagree

'isagree


&gree

)trongly &gree

They are only two !iews about this statement. FAG are agreed to this statement

that psychometric tests are useful for the de!elopment of the personnel in an

organi"ation. owe!er, FAG are uncertain about this !iewpoint they are neither

agreed no disagreed to this statement.

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s*'hometri' Tests In'rease the Em.lo*ee s !ommitment To

The o31

)trongly 'isagree

'isagree


&gree

)trongly &gree

Psychometric tests increase the employee s commitment to the #ob, when they

got right #obs on merit; they got the chances of training and de!elopment in their

organi"ations, then ultimately their commitment to #ob increases. They become

more loyal to their organi"ation. That s why ma#ority, LAG is agreed and 0AG

strongly agreed to this statement. owe!er, LAG are not sure about this !iew

point.

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s*'hometri' Tests Are Usef&l For erforman'e

Mana)ement1

Psychometric Tests

)trongly 'isagree

'isagree(either &gree nor 'isagree

&gree

)trongly &gree

The role of psychometric tests in performance management is useful, LAG are

agreed to this statement, they belie!e it is true and LAG are disagreed to this

statement. 0AG are agreed nor disagreed to this statement.

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Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Skills, Abilities,Interest,Traits

and behavior

* + + .-- . /0

Selection And ecruitment * + +- 0.1 *.+20

Trainin! And Development 3 .-- .---

"er#ormance M!t 0 + 3 +. 1 . 11

$r!ani%ational &ommitment 0 + 3 +. 1 . 11

'alid N (list)ise* 3

Psychometric tests influence the different factors. 3y getting the standard de!iations of

different factors, we can obser!e which !ariable is the most important one.

The one which is ha!ing the largest difference from the standard de!iation that will be

the largest one and important !ariable here, which is hea!ily influenced by the

psychometric tests. /nd from the data we can see that they are s ills, abilities, interests

and beha!ior because it has highest standard de!iation which is @.@H1.

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Anal*sis an% Res&lts1

After 'olle'tin) the 8hole information, %ata is anal*:e% as follo8s1This research pro!ides strong confirmation that the use of psychometric tests is

increasing o!er time. &n Pa istan, it is large organi"ations which are either using

or ha!e chosen to use tests. Psychometric tests are not un nown for small

organi"ations, but they tend to be deterred by the costs of tests and low no of

!acancies, which they ha!e. Psychometric tests enforce + to thin more clearly

about roles, what attributes those roles re%uire and what those attributes

specifically mean.

The Case of H!(:

The use of psychometric tests is in its initial years to support and to add !alues to

+. 3: uses these tests for the hiring of the staff. The main purpose was to hire

right staff at right #obs. 3: is aware of the importance of these tests, it belie!es

that these tests impro!e the performance of the employees, moti!ate them to use

their full potential at their #obs. This thing enables the employees to use their

D4/s and increase the producti!ity at wor place. 8hich will ultimately impro!e

the performance of the 3:. There are many branches of 3: wor ing in

9aisalabad city; there are almost similar !iews about such tests. They managers

and employees ha!e positi!e remar s about such tests.

o doubt, it has some wea nesses and re%uires more proper planning and

efforts to o!ercome them e.g. proper designing, implementation and serious

attitude of entire team towards these tests.

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a9istan@s an9in) Se'tor In%&str* Anal*sis

3an s play !ery important role in the economy of a country and Pa istan is noe$emption. 3an ing is one of the most sensiti!e businesses all o!er the world. 3an s

play !ery important role in the economy of a country and Pa istan is no e$emption.

3an s are custodian to the assets of the general masses. The ban ing sector plays a

significant role in a contemporary world of money and economy. &t influences and

facilitates many different but integrated economic acti!ities li e resources mobili"ation,

po!erty elimination, production and distribution of public finance.

Pa istan has a well-de!eloped ban ing system, which consists of a wide !ariety ofinstitutions ranging from a central ban to commercial ban s and to speciali"ed

agencies to cater for special re%uirements of specific sectors. The country started

without any worthwhile ban ing networ in KLE but witnessed phenomenal growth in

the first two decades. 3y KEA, it had ac%uired a flourishing ban ing sector.

3an s in Pa istan account for KFG of the financial sector. Pa istan has a well-

de!eloped ban ing system, which consists of a wide !ariety of institutions ranging from

a central ban to commercial ban s and to speciali"ed agencies to cater for specialre%uirements of specific sectors. The country started without any worthwhile ban ing

networ in KLE but witnessed phenomenal growth in the first two decades. 3y KEA, it

had ac%uired a flourishing ban ing sector.

The era of KAs was the clima$ of pri!ati"ation, deregulation and restructuring in the

domestic ban ing industry and financial institutions. The 5o!ernment only owns the

ational 3an but HAG of ban assets are in pri!ate sector. 3an ing assets rose three-

folds o!er the last fi!e years and the industry si"e is reaching +s L trillion. Thecontribution of ban ing sector to 5>P ratio is FF.@G. Pa istan has been ran ed 0nd in

performance and efficiency indicators among the 4outh /sian countries by the 8orld

3an . There are @H scheduled ban s of which the top fi!e ha!e FAG of the mar et

share. 3an ing industry, in Pa istan, is currently under a wa!e of ergers and

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/c%uisitions ( O /s). There are on a!erage 1 O /s per year.

1) P'%lic "ector Commercial !an*s: ational 3an of Pa istan, 9irst 8omen 3an

:imited, The 3an of Dhyber, The 3an of Pun#ab

+) (ocal Private !an*s: /s ari 6ommercial 3an :imited, 3an /l-9alah :imited, 3an/l abib :imited, 3olan 3an :imited, 9aysal 3an :imited, P&6&6 6ommercial 3an

:imited, eutsche 3an , 7mirates 3an , &9&6, ong Dong 4hangai 3an ing 6orporation,

4tandard 6hartered 3an , etc.

-) "peciali ed !an*s: ari Tar%iati 3an :td., &ndustrial >e!elopment 3an of

Pa istan, Pun#ab Pro!incial 6ooperati!e 3an :imited

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"earnin)1

/fter wor ing on the topic of Psychometric Tests, it is reali"ed that the use of

these tests are !ery rare in our organi"ation. ost of the ban s are not using

such tests, only few are adopted such tests. ost of the employees e!en

managers ha!e less information about such tests. Their awareness le!el is low,

they do not ha!e serious attitude regarding such tests, &t will ta e more time for

the proper implementation and desired outcomes. 2rgani"ations must pay properattention in the designing and implementation of such tests. 4o that they can be

used for hiring, training O de!elopment and for performance management

systems purposes and can produce desired results. 7ach organi"ation must

ha!e some amount of budget for such tests, no doubt at first organi"ations ta e it

as e$pense, but in reality these tests pro!ide long term benefits to the

organi"ations. 3ecause such tests pro!ide right person at right #ob, moti!ate

them, etc. 3y doing so the organi"ations become effecti!e as well as efficient and

ultimately, their producti!ity increases.

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Re'ommen%ations1

2rgani"ation must eep sufficient budget for recruiting and hiring purposes so

that psychometric tests can be conducted, in this way organi"ations can choose a

more appropriate candidate, which will be ultimately beneficial for the organi"ation

Psychometric Tests are a powerful and !ersatile assessment tool; so Pa istani

organi"ations must increase its use for enhancing the %uality of assessment and

de!elopment of employees.

There should be speciali"ed psychologists in e!ery big organi"ation who should

be made responsible for implementation of psychometric test and to align them with

the organi"ational o!erall goals.

The organi"ations should promptly utili"e those tests and tools who ha!e high

grade of reliability and !alidity.

2rgani"ations should ensure the fairness of such tests and their results.

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!on'l&sion1

/fter conducting this research and analy"ing the !iew points of differentmanagers it is concluded that wworldwide the use of Psychometric tests are

increasing. The use of psychometric tests by human resource professionals

are as an aid to employee selection, de!elopment and performane appraisal

is probably at an all time high.The increase in the use of aptitude and

personality tests in the wor place is a positi!e thing pro!ided the tests are

chosen and used properly. o douut this test has some disad!antages (e.g.

frustration can be created between the e$isting wor ers).The use of these

tests are no dout less in Pa istan. 3ut now the trend is establishing and most

of the sectors are using it for multidimensional purposes. The main reason for

studying the psychometric tests use is that it may be able to pro!ide realistic

indications of the demand for s ills among test users because employers

ha!e to pay si"eable amount of money in order to use the tests. &n Pa istan,

the main problems at the moment are the lac of awreness in the field and the

absence of trained professionals on psychometric testing practices. ost of

the tests are poorely designed and implemented, that way they fail to achie!ethe re%uire results. 2n aggra!ationnote there is almost no e!idence of the

specific s ills which employers are aiming to assess when they ma e use of

psychometric tests and hence we can not as yet ma e inferences from test

use as to which s ills are in demand in industry.

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hbl assignment

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