It is important to apply observation techniques learned from psychological testing to the business or organizational setting. Observers can be used to evaluate performance of an individual, a group, or how an individual relates to others in a group. This can be extremely valuable because the overall success of a company is based on the strengths of the individual partners and employees. The observations made by a trained evaluator can relay information to managers within the company that do not have the time to simply sit and observe the lower workers because there are so many responsibilities for which managers are responsible.

             One task for an observer within the company is to determine who is the most effective at their given tasks. For example, in a department responsible for sales, it is important to determine which factors create the best salesman. In a telephone sales department, the voice and speaking ability of the workers will be a strong determining factor in who is the most successful. The observer may be able to determine if males or females are more effective salesman. These observations could then be applied to hiring and training decisions.

             A pitfall that must be carefully avoided is that it is illegal to discriminate against workers for being a particular gender. For example, a company cannot decide to not hire a worker because she is female, even if research has shown that males are better salesmen. Therefore, these findings must instead be applied to training methods. If males get a better response on the phone, women can be taught to speak in a lower tone of voice and otherwise alter their speech patterns to be more masculine. Then, if the female worker will not respond to vocal training for phone work, then she can be fired based on her inability to perform the necessary tasks, not her gender.