Journal article
Estimates of the Dollar Value of Employee Output in Utility Analyses: An Empirical Test of Two Theories
Journal of applied psychology, Vol.77(3), pp.234-250
06/01/1992
DOI: 10.1037/0021-9010.77.3.234
Abstract
This study examined distributions of estimates of the dollar value of performance in studies employing
Schmidt, Hunter, McKenzie, and Muldrow's (1979)
method for estimating the standard deviation of job performance
(
SD
y
)
and found evidence that (a) the mean 50th percentile estimate is biased downward, (b) estimates of
SD
y
appear to be a constant percentage of the 50th percentile estimate, and (c) estimates of
SD
y
as a percentage of the 50th percentile value
(
SD
p
)
are quite similar to empirical
SD
p
values based on actual employee output. These findings suggest that the downward bias in the mean estimate of the 50th percentile causes the mean estimate of
SD
y
to be similarly biased downward, but does not bias the estimates of
SD
p
. Finally, an objective method for estimating the value of average employee output is described. We conclude that the product of this value and the mean supervisory estimate of
SD
p
yields an unbiased estimate of
SD
y
.
Details
- Title: Subtitle
- Estimates of the Dollar Value of Employee Output in Utility Analyses: An Empirical Test of Two Theories
- Creators
- Michael K Judiesch - University of IowaFrank L Schmidt - University of IowaMichael K Mount - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of applied psychology, Vol.77(3), pp.234-250
- DOI
- 10.1037/0021-9010.77.3.234
- ISSN
- 0021-9010
- eISSN
- 1939-1854
- Publisher
- American Psychological Association; WASHINGTON
- Number of pages
- 17
- Language
- English
- Date published
- 06/01/1992
- Academic Unit
- Management and Entrepreneurship
- Record Identifier
- 9984963104302771
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