As a teacher of English, do you focus more on testing language knowledge or testing the psycho-linguistic processing involved in language use?

Language testing comes under Testing and Evaluation, so one can go ahead with the interface of psycho (competence) and performance(production).

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If I am a teacher of English I would have focused on the pyscho-linguistic processing involved in language use to condition indepth mental awareness that would easily absorbed the language being learnt.  Human nature uses its mental awarenes and faculties that energize its psychological system towards easily adaptation of the language(s) to be learnt.  Through psycho-linguistic process, learning a certain language would be easy and lead to adaptation of local language and its appropriate pronounciation. 

Well, first. It is more relevant and important for my students. I do not stuff my head with highbrow unnecessary concepts of psychological merits, I prefer clear clean-cut practical teaching