[IPAC-List] Utility Analysis

[Aamodt, Michael G]

Pat,

Here are two articles that expand on the classic formula:

Boudreau, J. W. (1983). Economic considerations in estimating the utility of human resource productivity improvement programs. Personnel Psychology, 36, 551–576.

Russell, C. J., Colella, A., & Bobko, P. (1993). Expanding the context of utility: The strategic impact of personnel selection. Personnel Psychology, 46, 781–801.
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Michael G. Aamodt, Ph.D. (Mike)
Professor Emeritus
Department of Psychology
Radford University
Radford, VA  24142-6946
(202) 280-2172
maamodt at radford.edu
________________________________________
From: ipac-list-bounces at ipacweb.org [ipac-list-bounces at ipacweb.org] On Behalf Of Patrick McCoy [Patrick.McCoy at psc-cfp.gc.ca]
Sent: Thursday, February 04, 2010 11:12 AM
To: ipac-list at ipacweb.org
Subject: [IPAC-List] Utility Analysis

Let's get another interesting discussion going!

The last time I had a chance to do some reading on utility, researchers were calculating the financial advantage of using selection tools using formulae such as the following:


U = (Ns) (SDy) (rxy) (Zx) (T) minus (C)

U = Utility
Ns = Number selected
Sdy = Variability in performance of job incumbents (in dollars)
rxy = Validity of assessment tool
Zx = The cutoff score expressed in terms of Z scores
T =  Average tenure of those hired

C = Cost of developing and using the assessment instrument per applicant


Was wondering if any of you know whether there have been refinements to approaches like the one in the formulae.  Is there anything better out there?

Thank you,

Pat McCoy, Ph.D.
Ottawa, Canada


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