Abstract

Practical Intelligence (PI) for solving everyday problems in living is distinguishable from academic intelligence as measured by IQ tests. The relative importance of each aspect of intelligence will vary from one situation to the next, depending on characteristics of the real-world pursuit. The purpose of the present study was to examine the theory and measurement of PI, focusing on the PI in organizational setting. Specifically, within the framework of the contextual subtheory of Sternberg's triarchic theory of intelligence, the construct of PI and the instrument for measuring it, the TKIM (Tacit Knowledge Inventory for Manager) were discussed. Also, the development of a PI test for a large company in Korea and the findings on the test were described. The results provided strong support for the hypothesis of Sternberg & Wagner. The PI test correlated significantly with the criterion measure of supervisors' ratings, with the value of r² being 2 to 3 times larger than that typically found between performance on tests and job performance. The importance of the present experiment in the large company in Korea is to suggest that in addition to other measures (e.g. IQ, personality), PI plays a nontrivial role in work-related practical judgement and decision making. Finally, the future directions for developing psychological tests as an effective selection tool were proposed, and the roles of PI test for selection, placement, training and development were examined. The role of industrial and organizational psychologists should play in this process was also discussed.