They can be tricky in order to help rank the students. .
Most norm-referenced tests are multiple-choice tests. They use content that many times is not seen in the local curriculum. Examples of these are: the California Achievement Test (CAT), the Comprehensive Test of Basic Skills (CTBS), which includes the Terra Nova, the Iowa Test of Basic Skills (ITBS), the Metropolitan Achievement Test (MAT), and the Stanford Achievement Test. "Cognitive Ability", "School Readiness", and IQ tests are also examples of Norm-referenced tests.
There are reasons to use norm-referenced tests. They are the easiest way to compare students. Most school districts have special programs both for special needs students and for gifted and talented students. Norm-referenced tests are a way to identify these students and can help get them placed into the appropriate programs. They are relatively cheap and easy to administer as they don't take a whole lot of the teacher's time to give and/or score. They also can give us a quick picture of what students have learned about things most people expect students to learn at a given age or grade level.
There are some pitfalls in using norm-referenced tests. Mistakes can be made by educators who rely on test scores solely to make educational decisions. The major producers of these tests tell school districts not to use them as a basis for making decisions about graduation, retention, replacement, etc. They know that their own tests cannot produce a full picture of where any particular student may be overall in their academic development. These tests can only measure a small part of a subject area or a limited range of abilities. Multiple-choice math tests, for example, are not good for assessing whether or not students can reason with math and apply that knowledge to real-world problems. Because of the increasing pressure on school administrators and teachers to improve state mandated test scores, teachers have a tendency to teach "to the tests.
