INTRODUCTION TO THE ADVANCED MANAGERIAL

TESTS

Rationale

Short Description of the Tests

Choice on Tests

Administration

Scoring

Technical Support

Distribution Controls

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INTRODUCTION TO THE AMT
RATIONALE

The advanced Managerial Tests (AMT) were developed to satisfy the need of many
organisations for a set of up-to-date and job-relevant aptitude tests for managers and work
experienced graduates. The AMT consists of four tests looking solely at the verbal and
numerical skills required to perform effectively in middle to senior management positions.
The tests have been designed to be occupationally relevant and consequently are
particularly business oriented in style. In order to reflect current practice, calculators may be
used for both numerical tests.

SHORT DESCRIPTIONS OF THE TESTS

Verbal Application (VMTI) assesses word usage and grammatical understanding of

written text.

Numerical Reasoning (NMT2) tests the ability to solve business-related numerical

problems involving decimals, percentages, averages and ratios.

Verbal Analysis (VMT3) assesses the ability to understand and critically evaluate
passages of high level written information.

Numerical Analysis (NMT4) measures the ability to make correct inferences and
decisions from business-related numerical data presented in the form of graphs, charts and
tables of figures.

CHOICE OF TESTS

Choice of tests should be founded on careful job analysis, which will identify the abilities and
attributes required to perform the job. The resulting well-researched person specification,
read in conjunction with test descriptions and validity evidence presented in this manual and
elsewhere, should enable the selection of an appropriate combination of AMT tests.
Whenever possible, validity research should be conducted prior to the introduction of tests to
ensure that they are appropriate for their intended purpose and fair to all applicants.

ADMINISTRATION

The administration of the AMT is a straightforward procedure through the use of separate
administration instruction cards. The total testing time for all four tests in the battery is 1 hour
and 50 minutes. With time for administration and example questions, it would take about 2
hours for all of the tests to be completed.

However, it may be more practical to select one numerical and one verbal tests, particularly
in situations where time is limited. It is possible then to reduce the time required to around
1 hour should VMT1 and NMT2 be chosen.

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SCORING

The tests in the AMT can be scored either by hand or machine. They are all in multiple-
choice, paper and pencil format. The multiple-choice format and special answer sheets
permit quick scoring using plastic scoring key overlays.

In addition, the tests can be scored using the NCS Opscan 5 optical mark reader,
connected to a personal computer. Machine scoring is particularly effective where a large
number of applicants need to be tested. (Please contact SHLs Computer Services
Department for further information.)

TECHNICAL SUPPORT

The Advanced Managerial Tests are supported by SHLs ongoing research and development
programme and test users are regularly updated with recent norms and validation studies
from a range of organisations. Norms for particular organisations can be provided on receipt
of raw scores (and basic bio-data such as age, sex, educational qualifications), and test
users are encouraged to send data to us. Advice or assistance with job analysis and
validation studies is also available. Such research is important to ensure test relevance as
only relevant measures contribute to the effectiveness and intrinsic fairness of selection
decisions.

DISTRIBUTION CONTROLS

These tests are not freely available to the general public, but are distributed under strict
control to suitably trained and qualified test users. SHL runs training courses in occupational
testing to standards laid down by international psychological associations.

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DESCRIPTION OF THE ADVANCED MANAGERIAL TESTS
Overview

Verbal Application

Numerical Reasoning

Verbal Analysis

Numerical Analysis

OVERVIEW

The SHL Advanced Managerial Tests (AMT) are a collection of tests designed specifically to
measure the verbal and numerical abilities required to perform effectively in middle to senior
management positions. The battery can be used for selection, placement and career
development in a broad range of functions such as sales, marketing, finance, production,
accountancy, computing and engineering.

The AMT assesses the important skills of high level language proficiency and numeracy.
The suitable ability range for these tests is from GCE A level upwards.

The two shorter tests, VMT1 and NMT2, are intended to allow a relatively quick check of the
level of competency, while VMT3 and NMT4 are designed to provide a more in-depth and
discriminating assessment at high level.

The tests are designed to be used separately or in any combination. The choice of test or
tests to be used should be based on the results of a job analysis, detailed job description or a
validation study. For example, if a job has a high demand for numerical skills as well as a
need for the general verbal proficiency required in most managerial positions, an efficient
combination of tests would be VMT1 and NMT4.

The time limits and number of items for each test are given below:
TEST NUMBER OF TIME LIMIT APPROX. ADMIN
ITEMS (minutes) TIME (minutes)

VMT1 Verbal Application 35 20 30

NMT2 Numerical Reasoning 35 20 30
VMT3 Verbal Analysis 35 35 45
NMT4 Numerical Analysis 30 35 45

More detailed descriptions of the individual AMT tests follow. In order to provide a clear
understanding of the item format, copies of the example pages are also included. These
reflect only the easier items. For an overview of the complete test, the question booklet itself
should be consulted.

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The suggestions given in this manual of the jobs for which these tests may be applicable are
intended as guidelines only; test relevance should be examined in relation to each individual
job. Users who have concerns about test choice should seek professional advice before
implementing the tests.

SHL does not accept liability for any loss of whatsoever nature suffered by any person or
entity as a result of placing reliance on this Manual and Users Guide.

VERBAL APPLICATION

VMTI

The Verbal Application Test is designed to assess work usage and grammatical
understanding of written test. The item content reflects the type of sentences, phrases or
expressions managers would be required to generate, use and comprehend in their day to
day work.

Candidates are presented with sentences which have two or three words missing; their task
is to choose, from the from five options given for each question, the combination of words
which best completes the sentence. The correct combination in each case will result in a
sentence which is grammatically correct and makes best sense.

Time limit: 20 minutes

Number of items: 35

Range: GCE A level upwards

Total administration time (including instructions) approximately 30 minutes.

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NUMERICAL REASONING

NMT2

The Numerical Reasoning test is designed to test the ability to solve business-related
numerical problems involving decimals, percentages, averages and ratios. The item content
is relevant to a business orientated work environment thus enhancing the face validity of the
test for work experienced candidates. Numerical reasoning is a skill required for the large
majority of managerial positions, particularly in functions such as sales, marketing, finance,
production and accountancy.

The Numerical Reasoning test consists of 35 short numerical problems; the candidate is
required to solve each problem and to select one answer from the five options given.
Problem types range from straightforward arithmetic, to percentages, ratios and probability.
In order to reflect current work practice, calculators may be used.

Time limit: 20 minutes

Number of items: 35

Range: GCE A level upwards

Total administration time (including instructions) approximately 30 minutes.

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VERBAL ANALYSIS

VMT3

The Verbal Analysis test assesses the ability to understand and critically evaluate passages
of high level written information. The verbal passages chosen are particularly business
focused, hence reinforcing the job relevance of this test.

The Verbal Analysis test consists of a series of verbal passages followed by a number of
questions designed to measure a range of verbal skills, such as drawing inferences, logical
reasoning, summarising information and understanding the meaning of words. Some
questions have five options to choose from, while others have just two.

Time limit: 35 minutes

Number of items: 35

Range: GCE A level upwards

Total administration time (including instructions) approximately 45 minutes.

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NUMERICAL REASONING

NMT4

The Numerical Reasoning test is designed to test the ability to make correct inferences and
decisions from business-related numerical data presented in the form of graphs, charts and
tables of figures. To enhance acceptability, all the data shown relates to one business. This
is a high level test suitable for discriminating numerical ability at the upper end of the ability
range

Candidates are required to interpret the meaning of questions and to use the data provided
to select one of five options. Data from two or three graphs, charts or tables are typically
required to solve each question. In order to reflect current work practice, calculators may be
used.

Time limit: 35 minutes

Number of items: 30

Range: GCE A level upwards

Total administration time (including instructions) approximately 45 minutes.

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THE DEVELOPMENT OF THE ADVANCED MANAGERIAL TESTS
Background

Defining the Concept

Test & Item Design

Test & Item Review

Item Trialling

Item Analysis

Final Form Trials and Analysis

Manual Writing and Ongoing Technical Reports

BACKGROUND

Like all SHL test batteries, h t e AMT has been through a lengthy development process. An
original set of managerial level tests, the Advanced Test Battery (ATB), was first developed
in 1979. Twelve years later, in 1991, a review of this battery was carried out in order to
assess its present day relevance and applicability. The review revealed that the battery was
widely used for a number of different purposes including selection, the assessment of
experienced or senior managers and the recruitment of technical, particularly computer,
specialists. Overall, it was felt that these separate areas could best be assessed by three
distinct test batteries, the Management and Graduate Item Bank (MGIB) for graduates, the
Advanced Managerial Tests (AMT) for experienced managers and the Information
Technology Test Series (ITTS) for computer specialists. As far as the existing ATB tests
were concerned, Number Series (NA2), Diagramming (DA5) and Spatial Reasoning (ST7)
were re-assigned to the Information Technology Test Series as NIT2, DIT5 and SIT7,
respectively. The Management and Graduate Item Bank tests, Verbal Critical Reasoning
(VMG1/2/3) and Numerical Critical Reasoning (NMG1/2/3) were developed as additional
versions of their VA3 and NA4 precursors from the ATB, echoing both their format and
content. The need for more work-based and management-orientated high level verbal and
numerical tests, was addressed through the construction of the Advanced Managerial Tests.
(See Sections 9 and 13 below for further discussions of this subject.)

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DEFINING THE CONCEPT

The development of the AMT began with the definition of key skills commonly required for
managerial work. Originally based on the major 1979 review of the research literature, these
skills were reviewed and reconfirmed in 1991 against up-to-date job analysis data and
validation studies. Two sets of skills were found consistently to be of importance in
managerial positions. These were:

Verbal ability
Vocabulary, grammar
Verbal logical reasoning
Verbal comprehension

Numerical ability
Numerical reasoning, using business-related information.

TEST AND ITEM DESIGN

The rationale for each of the AMT tests, including the information on sources used for test
content, are summarised below.

Verbal Application

This test measures the ability to understand the meaning of words, logic within sentences
and the use of grammar. Items consist of sentences with two or three words omitted. Item
content is based on a range of material commonly found in work environments, e.g. office
memos, correspondence, business journals and newspaper articles. The use of obscure
words has deliberately been avoided and the time limit set so that almost all candidates
complete the test. This ensure that the focus remains firmly on relevant verbal skills and not
just speed of working.

Numerical Reasoning

This test consists of short problems and measures the ability to understand the relationships
between pieces of numerical information. The problems range from those addressing simple
arithmetic to those involving percentages, ratios, probability and the use of simple formulae.

The items are drawn from a variety of commercial contexts to ensure their relevance to a
range of managerial jobs. Calculators may be used.

Verbal Analysis

This test measures the ability to read, interpret and act on complex written information, a skill
that underpins many of the activities associated with management.

Items are based on passages of information and address the ability to summarise key points,
to comprehend words and phrases and to evaluate statements logically. The text has been
drawn from a variety of high level sources including journals, reports, newspaper articles and
reference books. The time limit allows the majority of candidates to complete all items.

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Numerical Analysis

This test measures the ability to interpret, use and make correct inferences from business-
related numerical information.

The data is presented as a series of charts, tables and graphs, and the information must be
combined and manipulated to solve specific problems. The data is based on a retail
business and information pertinent to various functions of the company such as sales,
accounts, personnel and marketing is covered. The material has been drawn from various
business magazines, financial pages of newspapers and company reports. Complex
mathematics has deliberately been avoided. Calculators may be used.

TEST AND ITEM REVIEW

The original material for the four AMT tests was assembled in 1991. Sufficient extra items
(questions) were written to allow those items not performing to an acceptable level to be
rejected at a later date.

All of the material was then reviewed and amended by a team of experienced psycho-
metricians within SHL, at two levels. Firstly, the overall design of each test was considered
in relation to its credibility (i.e. face-validity) and job relevance. Secondly, within each test,
every single item was reviewed several times in order to eliminate those which did not
appear to be rationally related to other items in the test, those that were ambiguous in any
manner or those that were judged unsuitable in any other way.

Finally, the material was reviewed by equal opportunities specialists and members of
minority groups to eliminate any items which could be identified as having a potential to
create gender or ethnic bias.

ITEM TRIALLING

All of the items which met the reviewing criteria were arranged into trial test versions in an
order which was a close as possible to intended final forms. Each test was trialled on a
sample of around 300 people, drawn from various companies, applicant groups, business
schools and final year university and polytechnic students; a sample intended to be as
representative as possible of those on whom the tests might be used. In total some 600
people took part in the trialling which was held between March and July 1991.

ITEM ANALYSIS

The next stage was item analysis. Here statistical procedures were used to investigate the
pattern of responses to each item in detail. Each question (item) was considered individually
and in relation to the test of the test from which it was drawn.

Items were rejected if there was inconsistency in response patterns, if they did not relate to
the other items in the test or to the construct being measured, or if there appeared to be a
difficulty or ambiguity which resulted in otherwise high scoring trial participants responding
incorrectly.

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The response patterns of different ethnic and gender groups were also investigated at this
stage. Items were rejected where they were found to show differential difficulties for a
particular group, unrelated to the ability being measured by the test. (Full details of the
results of the item analyses are shown in Section 12, Additional Technical Data.)

FINAL FORM TRIALS AND ANALYSIS

The remaining items which met the item analysis criteria were then selected for inclusion in
the final forms of the tests. In choosing these final form items a number of additional
considerations were addressed. The items which were selected had collectively to reflect the
full range of content of each test ad provide a span of difficulty from very easy items through
to those which the trial groups had found most difficult. Within these constraints, the items
chosen were those with the best psychometric properties.

The final form of each test was then re-trialled during the period February to September
1992. Additional groups were used in order to confirm that the test performed
psychometrically as anticipated and to provide standardisation (norm) data.

Standardisation data was collected from a sample of individuals in management positions in

industry and commerce as well as those completing business studies courses and university
degrees. Their education level varied from no formal qualifications through to post graduate
degrees and doctorates.

In terms of ethnic origin, 90% were classified as white European and 10% belonged to a
combined ethnic minority group (Asian, African, Afro-Caribbean according to their own self-
description). In terms of gender, 45% of the group were female and 55% male. Altogether,
1 200 people took part in these final standardisation trials.

MANUAL WRITING AND ONGOING TECHNICAL REPORTS

This AMT manual contains detailed information on the administration, scoring and
interpretation of the tests as well as technical information on the reliability and validity of the
four tests, specific norm data and a discussion of testing and equal opportunities.

Monitoring the AMT is an ongoing process and we will publish new information about the
tests from time to time. Test users are urged to contribute to this process by supplying SHL
with scores and details of their own findings which can then be shared with other AMT users
through the publication of appropriate norms and technical updates.

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