[mdtusz]

And both methods are bad.

Whiteboard tests aren't inherently bad, but the sorts of algorithm questions that are asked at some interviews are absurd and do practically nothing to determine whether the candidate would be a good employee. 95% of being a programmer is plumbing data together, and it's pretty rare that there is a need to develop more complex algorithms for things - as long as someone knows the concepts of time and space complexity and isn't going to make huge O(n!) operations, it's much more important IMO to be interviewing for communication skills, system architecture, network, and security knowledge.

There's obviously exceptions to this if you're hiring for a role that specifically is writing very algorithmic code to solve a hard science or graphics problem but that's very much the edge case and even if it is the case, domain knowledge will be more important.