Situational Judgment tests present candidates with situations they normally encounter as part of their job duties. The candidate is then asked to choose the best action to take from various options. This type of assessment measures the candidate's ability to problem-solve and utilize judgment in their day-to-day activities and interactions.
Research focusing on situational judgment tests has found that SJTs are good predictors of job performance, offer incremental criterion-related validity above cognitive ability and personality tests and produce little, if any, adverse impact towards minorities. Job applicants also have positive reactions towards SJTs, viewing them as job-related and relevant to the hiring process.
Lievens, F., Peeters, H. and Schollaert, E. (2008). Situational Judgment Tests: A review of recent research. Personnel Review, 4, 426-441.