Further to my thoughts above, what happens if an individual fails the test? Or if a large number of people fail the test?
There are ways to pass the test - some more ethical than others - but does anyone in your organization look at training material content and 'knowledge transfer methodology' on an ongoing basis to ensure that it is suitable to your employees? This goes beyond ensuring you're training on the most recent procedure or piece of legislation. This entails reviewing the format and structure and flow so that the material resonates with the employees.
Another concern is what constitutes "learning"? Is this the ability of an individual to recall a definition or a term? Or is it more about comprehension and application?
What if English (or the language of the business) is not the individual's first language? What if the individual has a learning challenge (e.g., dyslexia)? These are a couple of examples that may impeded an employee's ability to perform well on a quiz or test.
The other concern I have with quizzes and tests is any "pass" mark that is not 100%. After all, out on the shop floor or in the service world, will we honestly say 70% of conforming behaviour is acceptable? If I check into a hotel and my room is only 70% "done up", is that a "pass"? Probably not. Why should a quiz or test be any different?
For what it is worth, when I do internal auditor training there is an exam with a "pass" mark. BUT, here's the kicker, with each participant after I have marked their final exam, we have a face-to-face (and heart-to-heart) about their responses (especially the ones that are not the most suitable or appropriate). I like to understand their reasoning behind their respones. This may result in my training material (and method) being modified, or their score revised, or maybe nothing at all (except for a correction on their understanding)...but it's a good discussion to have.
I realize that I probably sound like I'm anti-quiz or anti-test. In reality, I am not. They can be used to perhaps demonstate that someone truly did read a revised procedure or sit through a module on new piece of legislation. However, I really hope that organizations recognize the limitations of this approach and find other, more value-added, means to assess if employees are truly learning - and applying - the desired information.