An important thing to remember is that broken/not-broken is completely different for each side of that desk: candidate person & hiring person. This is always the case for selection steps.
The employer (or school, etc) wants to make successful hires and to avoid bad ones. False positives are always a big problem. False negatives are usually much smaller one. A process is good if it produces good hires, and no bad ones.
In principle, a process that hires 3 good candidates from a pool containing 5 good candidates and lots of bad ones is good. Avoiding bad hires is paramount. Missing 2 good hires is not as bad as making one bad hire, not near as bad usually.
Most employers don't care about false negatives at all. If they do, they probably care most about missing really good outlier hires, not mistakenly selecting the 5th best candidate instead of the 4th. The only reason to care is fairness. People instintively care about fairness so this affects practices but it's not nearly like false positives.
Employers that need huge volume (eg, the army) are the only ones that care about false positives as much as candidates do.
The candidate (student etc.) generally feels the process is "broken" when it is unfair to them. Unfair means that a person could have done the job well, but cannot get hired. Ie, if the candidate is a "false negative" then the process is broken.
Anyway... When things become systemic, the "brokenness" becomes acute to a candidate. If whiteboards (your architecture version, Google's CS version or any other version) are prevelant and you suck at them... you can't get hired. There are people who suck at your test (whatever it is) but would be good at the job. Your proxy is a biased against some people, every proxy is.
Like I said, a lot of things are like this. One side is working the numbers game, the other side isn't. Insurance markets, college entrance, executive appointments, PayPal's fraudster detection (bastards!), credit scores, investment (even startup investment)...
The employer (or school, etc) wants to make successful hires and to avoid bad ones. False positives are always a big problem. False negatives are usually much smaller one. A process is good if it produces good hires, and no bad ones.
In principle, a process that hires 3 good candidates from a pool containing 5 good candidates and lots of bad ones is good. Avoiding bad hires is paramount. Missing 2 good hires is not as bad as making one bad hire, not near as bad usually.
Most employers don't care about false negatives at all. If they do, they probably care most about missing really good outlier hires, not mistakenly selecting the 5th best candidate instead of the 4th. The only reason to care is fairness. People instintively care about fairness so this affects practices but it's not nearly like false positives.
Employers that need huge volume (eg, the army) are the only ones that care about false positives as much as candidates do.
The candidate (student etc.) generally feels the process is "broken" when it is unfair to them. Unfair means that a person could have done the job well, but cannot get hired. Ie, if the candidate is a "false negative" then the process is broken.
Anyway... When things become systemic, the "brokenness" becomes acute to a candidate. If whiteboards (your architecture version, Google's CS version or any other version) are prevelant and you suck at them... you can't get hired. There are people who suck at your test (whatever it is) but would be good at the job. Your proxy is a biased against some people, every proxy is.
Like I said, a lot of things are like this. One side is working the numbers game, the other side isn't. Insurance markets, college entrance, executive appointments, PayPal's fraudster detection (bastards!), credit scores, investment (even startup investment)...