Ensuring that the competent are truly competent: an overview of common methods and procedures used to set standards on high-stakes examinations

Determining whether or not an examinee has met an adequate standard of performance constitutes a central task for licensure and certification bodies. Consequently, standard setting is a key activity for all certification and licensing testing programs. The purpose of this article is to provide an overview of methods that have been proposed for set a passing standard on an examination. First, the distinction between norm-referenced and criterion-referenced methods for setting a standard will be outlined. Then, both test-centered and examinee-centered methods for setting a passing standard will be explicated. The importance of factoring in the consequences of adopting a standard will also be illustrated via the Hofstee method. In the concluding section, important issues pertaining to the selection of panelists as well as the validation of the standard will be addressed briefly.