OREANDA-NEWS. Tata Strategic Management Group (TSMG), the largest Indian-owned management consulting firm, presented a study on 'Psychometrics in Indian Organisations' today. Through this study, TSMG finds that organisations are progressively employing psychometric instruments for addressing behavioural changes to support decisions for talent processes, like recruitment and selection, leadership development, succession planning, high performance identification and team allocations. The survey conducted by TSMG suggests the adoption rate of psychometrics could increase to 87 percent by 2016 in Indian organisations.

Key highlights of the study

Psychometric instruments are being used by 52 percent of organisations.

Within the next one to three years, 74 percent of non-users intend to use these instruments.

Our sample survey suggests that adoption rate could reach 87 percent by 2016.

Organisations that utilise MBTI are 49 percent, followed by Hogan (25%) and Firo-B (24%).

Organisations that will utilise psychometric instruments for recruitment and selection comprise 88 percent and are followed closely by 76 percent of organisations using outcomes for leadership development.

Contemporary instruments (e.g. Hogan, PAPI, SHL, Thomas Profiling etc.) are becoming increasingly popular.

CXOs are demanding benchmarks for behaviour across industries and roles - validated in the Indian context.

This report aims at drawing specific conclusions from usage of psychometric instruments across industries and its relevance in talent management decisions. Psychometric instruments are currently being used by 52 percent of organisations which facilitate objective people's decisions and reduce subjectivity.

There are, however, a large number of organisations that haven't yet been exposed to the concept of measuring behaviour and utility of psychometric instruments. These organisations recognise the need to develop leaders however, they are not entirely aware of instruments that facilitate the process of measuring behavioural and psychological transition of individuals.

The report assesses the pulse of psychometric instruments in the Indian market and is the first-ever study conducted in India, covering a variety of parameters on the usage of psychometric instruments. India will see a new trend emerging in the use of psychometric instruments.

Though traditional instruments (e.g. MBTI, FIRO-B) are holding ground, contemporary instruments (e.g. Hogan, PAPI, SHL, Thomas Profiling etc.) are becoming increasingly popular, as they measure specific workplace behaviour, display clear linkages to competencies and generate a variety of reports. Hogan Assessments, a late entrant in the Indian market, is the second most widely used tool and is gaining popularity over the others which have been there longer in the market. CXOs are also demanding benchmarks for behaviour across industries and roles - validated in the Indian context. This will create demand for new instruments like Jombay.

Commenting on the study, Raju Bhinge, chief executive officer, Tata Strategic Management Group, said, “Organisations must have well-defined talent management processes and a clear competency framework to identify essential behaviour. With the introduction of simple and easy to interpret instruments, adoption rate of psychometrics will increase dramatically. Our sample survey suggests that adoption rate could reach 87 percent by 2016. Organisations have started integrating behavioral aspects into their analytical framework which helps analyse behaviour that drive high performance within an organisation.”

Rohan Chopra, principal and head, organisational effectiveness, Tata Strategic Management Group, said, “The report highlights a significant increase in the number of organisations using psychometric instruments, especially in service sectors like retail, education and consulting. It has been observed that 75 percent of the organisations that are not using psychometric instruments, have expressed their eagerness to learn more, gain insights on industry trends and implement psychometric instruments in their talent management processes.”

The study highlights that organisations see benefits across the talent value chain in making key people decisions. Psychometric instruments can't be force fitted into an organisation's context. Market trends and individuals comfort in using certain instruments dominate the selection of instruments today. The focus must be to evaluate what is relevant to the organisation's context as well as relevant across levels. Hence, the purpose and behaviour that can drive the purpose within the organisation needs to be identified before selecting an instrument. There is no one size that fits all.