Personality tests are very popular amongst users as well as corporate HR people. Personality tests seek to profile people. They make sense to the extent that they supplement a chaotic personal interview by something in which one will not miss asking obvious questions. They also make sense when large number of people have to be screened by automating the task.
For a low down on personality tests, visit wikipedia .
But personality tests have limitations. In addition to the limitations the above link mentions, I would like to say that personality tests neither provide diagnostics nor do they offer any action-ability. They are like your health report that tells about your cholesterol levels and other indicators. The report may itself be incomplete (needing more tests) or the report may need an expert’s diagnosis that prescribes a course of actions.
Personality development, leadership development and in general, developing people is far more complex than that. If your aim is to develop your people, you will need a development process which combines training, with exercizes and coaching. You need to pace your people through such process. This requires a commitment by the CEO andthe management team. That’s why there very few companies who achieve success in this area.