Oh goodness, yes. The concepts of psychological evaluations arose much earlier, as you say. What I meant was the Nazis then used these to categorize people as either "fit" and "useful" to the regime or not. This meant psychiatrists and psychologists played a significant role in determining the fate of people sent to them for "testing". The military also began using these assessments in an attempt to (unsuccessfully) "weed out weaker prospects", hoping to reduce the number of soliders being discharged with PTSD, or "shell shock".