Utility Analysis for Multiple Selection Devices and Multiple Outcomes

Abstract

Traditional utility analysis only calculates the value of a given selection procedure over random selection. This assumption is not only an inaccurate representation of staffing policy but also leads to overestimates of a device's value. This paper presents a more accurate method for computing the validity of a selection battery for when there are multiple selection devices and multiple criteria. Application of the method is illustrated using previous utility analysis work and an actual case of administrative assistants with eight predictors and nine criteria. A final example also is provided that includes these advancements as well as other researchers' advances in a combined utility model. Results reveal that accounting for multiple criteria and outcomes dramatically reduces the utility estimates of implementing new selection devices.

Citation

STURMAN, M.C. (2001), "Utility Analysis for Multiple Selection Devices and Multiple Outcomes", Journal of Human Resource Costing & Accounting, Vol. 6 No. 2, pp. 9-28. https://doi.org/10.1108/eb029072