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Employers use group interviews to test your interpersonal and interactional skills. In particular they are looking for qualities they may not be able to see at an individual interview.Group interviews usually take two forms.
Discussing a topic:
E.g. The impact of Pauline Hansen's policies on study by overseas students in Australia (or Atomic testing in the Pacific)
Setting a problem to be solved:
E.g. Plan a four week expedition to the Antarctica (or open a hamburger shop in Bombay)
They will be looking to see if you make a distinct and unique contribution to the group and how you support, and listen to, and work in with the other members. Often they will have a check list which will also include things such as: talks too much, doesn't talk at all, cuts people off, and summarises just to name a few criteria.
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