Performance Appraisal Review of Literature

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A discussion regarding use of psychometric test has been carried out in May 2001, published by centre for the economics of education by Andrew Jenkins From the article: This paper surveys the literature on the use of psychometric testing by employers, and considers whether information on psychometric testing can be used to make deductions about changes in the demand for skills in the economy. The standard approach to measuring the demand for skills, and skill shortages, is to conduct a survey of employers. Among the main advantages of skill surveys are, firstly, that they are a direct and straightforward approach to answering questions about the extent of skill shortages and, secondly, that they can be designed to ensure that they give a representative picture of the economy as a whole. We argue that even the best of these surveys, which generally rely on the answers given by employers to a series of prompted questions, contain flaws sufficient to raise doubts about their reliability.

Surveys are forever being published, whether by the CBI, Chambers of Commerce, government agencies, task forces or other organisations suggesting that the British economy is deficient in some skill or other and that urgent action is needed. How accurate and reliable are these surveys? Are skills shortages as serious as many of them suggest? Here we argue that there could be serious flaws in existing survey evidence. Measuring the demand for skills is beset with methodological problems and the approach adopted in many surveys is likely to be inaccurate and misleading. Firstly, it is generous in its measurement of skill shortages. The criterion for reporting that an employer is suffering from a skill shortage is that there should be at least one of the following: Low number of applicants with the required skills Lack of work experience the company demands...
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