[neovive]

I think it depends on the position and responsibilities the person will have once hired. If the programmer will be coding directly from specs without any room for "interpretation" then a coding challenge may be very applicable. If you are looking for a programmer that also understands your business and will be required to make decisions and think on their feet, the value of a coding challenge diminishes.

It also depends on the time frame of the position. If you are looking to hire a programmer on a per project basis, then a solid understanding of the development language is critical. However, if you are hiring an developer for the long term, it's better to hire a smart and agile person that can contribute to the overall business as well -- which is hard to measure from a coding challenge.