In this approach work situation is created and the applicant is asked to perform his task in it. By observing it. predictions about the capability of the person to do the work in the original work situation can be found. For example – If we have to appoint a clerk in the office, we ask him to work in the office where table, chair, papers, files stamps, pen pencil, computer etc. can be used. We then ask him to type a paper, stamp it and take the signature, post it and file the office copy. 71 At given situation, how many mistakes are done while typing, time taken for typing, his language, how he used the rubber stamp, what type of cover he choose, how punching is done after filling the papers, how he arranges the file on the table and after completing all these jobs how he arranges the things on the table, all these activities are observed and on the basis of that observation the work capability, competency and accuracy can be seen. So