Is cost accounting the answer? Comparison of two behaviorally based methods for estimating the standard deviation of job performance in dollars with a cost-accounting-based approach.

Greer, Olen L.; Cascio, Wayne F.

doi:10.1037/0021-9010.72.4.588

Cited by 23 publications

(31 citation statements)

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“…Cascio & Ramos', 1986, CREPID technique or Roche's, 1965. While the convergence of these methods has been examined (Greer & Cascio, 1987;Weekley, Frank, O'Connor & Peters, 1985), as well as the stability of estimates across countries (Smith, 1989), it still remains to be determined if these more objectively based techniques are less susceptible to particular contextual effects. Such systematic study would definitely enhance our basic understanding of the valuation of human worth at work and would also provide increased precision in the application of utility estimates.…”

Section: Qualitative Commentsmentioning

confidence: 99%

Estimating the standard deviation of professors' worth: The effects of frame and presentation order in utility analysis

Bobko

Shetzer

Russell

1991

Journal of Occupational Psychology

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This study examined the effects of two cognitively oriented dimensions, framing and anchoring, on estimates of the standard deviation of the overall worth (SDy) of full professors in organizational behaviour. The estimates were produced using the Schmidt et al. (1979) procedure in utility analysis. In order to manipulate the framing variable, half of the subjects were presented the estimation task positively, in terms of potentially acquiring a new professor (in order to fill a vacancy); the remaining half were presented a negatively framed task, in terms of potentially losing a professor (thereby creating a vacancy). Different orders of eliciting percentile estimates provided the anchoring manipulations. A significant main effect for framing was obtained. Insignificant effects were found for both the ordering variable and its interaction with framing. Based on previous literature and the current study, it can be concluded that the Schmidt et al. procedure is highly susceptible to contextual effects and a multiplicity of estimates of SDy should be expected. Alternative techniques for estimating SDy should be considered by future researchers.Renewed interest in the decision theoretic equations developed by both Brogden ( 1949) and Cronbach & Gleser (1965) for estimating utility has been evidenced by increased application in occupational settings. A key component in these equations is the standard deviation of the value of job performance (SDy), and a number of procedures for estimating SDy have been put forward in the last decade or so. The most popular of these methods was proposed by Schmidt, Hunter, McKenzie & Muldrow (1979). This procedure, based on the assumption that job performance is normally distributed, requires supervisors to estimate the overall dollar value of the outputs of 50th, 85th and 15th percentile performers. Requests for reprints.* In fact, if one assumes that individual worth is always positive, the utility estimates will also be anchored, from below, by zero. As Bobko, Karren & Kerkar (1987) note, this assumption of positive worth does not always hold in the minds of the judges! Indeed, the notion that loss of academic staff might ~aue money for the respective university is further noted in the Discussion section.

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Section: Qualitative Commentsmentioning

confidence: 99%

Estimating the standard deviation of professors' worth: The effects of frame and presentation order in utility analysis

Bobko

Shetzer

Russell

1991

Journal of Occupational Psychology

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“…Cascio (1987a) also concluded that cost accounting systems focus on the costs and benefits of units of products, not units of performance; many estimates are needed, and the objective of cost accounting data may become suspect. Nevertheless, Greer and Cascio (1987) stated that a 0 cost accounting approach to the estimation of SDy "remains as the conceptual standard of comparison. "…”

Section: Overview--selection Utilitymentioning

confidence: 99%

The Utility of Selection for Military and Civilian Jobs

Zeidner¹,

Johnson²

1989

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9 0 0IDA Log No. HOl 89-34657 DEFINITIONS IDA publishes the following docunt to report the results ot its work. ReportsReports ae the most authoritative and most carefully considered products IDA publishes. They normally embody results of major projects whic (al ham a direct bori on decisions affectng major programs, or (hi address issues of significant concern to the Executive Branch, the Congress and/or the public, or (c) address issues that have significant economic implications. IDA Reports are reaiwed by outside paels of experts to ensure their high quality and relevance to the problem studied, and they e release by the President of lDA. Group ReportsGroup Reports record the findings and results of IDA establihed working grups and panels composed of senior individuals addressing major issues which otherwise would be the subject of an IDA Report. IDA Group Re porS ame reiewed by the senior individuals responsible for the pra-t and oth a selected by IDA to ensure thn high quality and relevance to e problem studied, and am releasd by the President of IDA. PapersPapers. also authoritative and carefully considered prodt of IDA, address stuJies that ar nrowe in scope than tOe com in Reports. IDA Papers are eviewd to ensure that they meet the high standards expected of reid papers in professional journals or f nn Agency t. DocumentsIDA Documents are used for the convenence of the sponsors or the analysts (a) to record 0 substantiv work done in qu ck reaction studie (b) to rcord the poeedings of contrenoes and meewtinp (c) to make ailab preliminy and tetativ results of analyses. (d) to recod data developed in the course of an investigation, or (e to forward Information tht is assoolly unanalyzed and unvalualed. The review of IDA Documents is suited to their contrn and inted use The work rpored in this document was conducted under contact MOA 903 64 C 0031 for the Department of Defense. The publication of this IDA Paper does not indicate endorment by the Department of Defense, nor should the content be constued as reflecting the official position of that Agency.SThis Paper has been eviewed by IDA to assure that it meets the high standards of 0 thoroughness, objectivity, and appropriate analytical wthodollo and At the results, conclusions and recommendation e properly supported by the mat al presented. Approved for pu srui, u 0l ,ram ,,mn mmm mmmunmu a REPORT DOCUMENTATION PAGE FomApproved OMB No. 0704-018

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“…Despite these difficulties, many utility analysts have attempted to validate the percentile estimation task as a viable basis for utility analysis, for example Burke and Frederick (1984), DeSimone et al (1986), Greer and Cascio (1987), Reilly and Smither (1985). These studies typically involve a comparison of SME judgments with objectively available criterion information such as sales figures.…”

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confidence: 99%

Accuracy of percentile judgments used in the utility analysis of personnel selection procedures

Myors

Carstairs

Todorov

2002

Australian Journal of Psychology

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Schmidt, Hunter, McKenzie and Muldrow's (1979) global estimation procedure for determining the standard deviation of job performance in monetary terms (SDy) is based on the assumption that people are able to estimate the percentiles of a normal distribution. The aim of the research reported here was to test the veracity of this assumption. We used participants who were primed to work with percentiles on a task that provided all the information necessary to solve the problem. Participants' percentile estimates were found to be grossly in error, suggesting that utilities estimated by the Schmidt et al. procedure are inaccurate. This finding was replicated in a second study which also examined the effect of group decision-making on the estimation process. Group estimates were found to be no better than individual estimate

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Is cost accounting the answer? Comparison of two behaviorally based methods for estimating the standard deviation of job performance in dollars with a cost-accounting-based approach.

Cited by 23 publications

References 24 publications

Estimating the standard deviation of professors' worth: The effects of frame and presentation order in utility analysis

Estimating the standard deviation of professors' worth: The effects of frame and presentation order in utility analysis

The Utility of Selection for Military and Civilian Jobs

Accuracy of percentile judgments used in the utility analysis of personnel selection procedures

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