Tests: Tests have become a popular technique of selecting employees. A test is a systematic comparison of the work behaviour of candidates on sample basis. Selection tests assess the attitude and performance of candidates with the help of psychological techniques. 

Two types of tests are: 

1. Achievement Tests: This test measures the skills and knowledge which the candidate already possesses at the time of testing. These tests help to determine whether the claims made by the candidate about his knowledge and skills are correct or not. The candidate is asked to perform the job and his actual test performance indicates his proficiency. For example, a candidate for the post of typist may be asked to type a page so as to judge his speed and accuracy. 

2. Intelligence Tests: These tests measure a person’s capacity for listening and comprehension in terms of his vocabulary, mental alertness, memory, reasoning, etc. An applicant’s intelligent quotient (IQ) can be judged through intelligent tests. 

As these test are helpful in judging the suitability of a candidate for the job in terms of his intelligence, temperament and dexterity, that’s why tests are used as a method for selection of employees by an organisation.