Chapter 7: Utility Flashcards
Utility
Usefulness or practical value of testing to improve efficiency; used to refer to the usefulness or practical value of a training program or intervention
Psychometric Soundness
Reliability and valibidy of a test; reliability and validity coefficients are acceptably high
Costs
Financial cost of the selection device under study; expenditures associated with testing or not testing
Allocation of Funds is Needed to Purchase
A particular test
A supply of blank test protocols
Computerized test processing, scoring, and interpretation from the test publisher or some independent service
Associated Costs of Testing
Payment to professional personnel and staff associated with test administration, scoring, and interpretation
Facility rental, mortgage, and/or other charges related to the usage of the test facility
Insurance, legal, accounting, licensing, and other routine costs of doing business
Benefits
Profits, gains, or advantages accrued from testing
Examples of Noneconomic Benefits in Industrial settings
Increase in quality of workers’ performance
Increase in quantity of workers’ performance
Decreases in time to train workers
Reduction in number of accidents
Reduction in worker turnover
Utility Analysis
Broadly defined as a family of techniques that entail a cost-benefit analysis designed to yield information relevant to a decision about the usefulness and/or practical value of a tool of assessment
Family of Techniques
Utility analysis is an umbrella term covering various possible methods, each requiring various kinds of data to be inputted and yielding arious kinds of output
Utility Analysis Undertaken for the Purpose of Evaluating a Test and make decisions regarding whether
One test is preferable to another test for use for a specific purpose
One tool of assessment (such as a test) is preferable to another tool of assessment (such as behavioral observation) for a specific purpose
The addition of one or more tests (or other tools of assessment) to one or more tests (or other tools of assessment) that are already in use is preferable for a specific purpose
No testing or assessment is preferable to any testing or assessment
Utility Analysis Undertaken for the Purpose of Evaluating a Training Program or Intervention will help make decision regarding whether
One training program is preferable to another training program
One method of intervention is preferable to another method of intervention
The addition or subtraction of elements to an existing training program improves the overall training program by making it more effective and efficient
The addition or subtraction of elements to an existing method of intervention improves the overall intervention by making it more effective and efficient
No training program is preferable to a given training program
No intervention is preferable to a given intervention
General Aproaches to Utility Analysis
Expectancy Data
Brogden-Cronbach-Gleser Formula
Expectancy Data
Will show that a test is working as it should and, by instituting this new test on a permanent basis, the company could reasonably expect to improve its productivity
Expectancy Table
Provides an indication of measure - an interval that may be categorized as parring, acceptable, or failing
Brogden-Cronbach-Gleser Formula
Developed a formula for the dollar amount of a utility gain resulting from the use of a particular selection instrument under specified conditions
Utility gain
Refers to an estimate of the benefit (monetary or otherwise) of using a particular test or selection method, taking into consideration the following factors:
number of applicants selected per year
Average length of time in the position
Criterion-Related Validity coefficient for the given predictor and criterion
Standard deviation of performance in Dollars or employees
Mean (standardized) score on the test for selected applicants
Productivity Gain
Refers to an estimated increase in work output
Practical Considerations
Pool of Job Applicants
Complexity of the Job
Cut Score in Use
Pool of Job Applicants
Issue of how many people would actually accept the employment position offered to them even if they were found to be a qualified candidate; Estimates of people who will actually accept the position should be adjusted downward as much as 80% in order to provide a more realistic estimate of the utility of a tool of assessment used for selection purposes
Complexity of the Job
The more complex the job, the more people differ on how well or poorly they do that job
Cut Score
Numerical reference point derived as a result of a judgment and used to dived a set of data into two or more classifications, with some action to be taken or some inference to be made on the basis of these classifications
Relative Cut Score
Reference point, in a distribution of test scores used to divide a set of data into two or more classifications - that is set based on norm-related considerations rather than on the relationship of test scores to a criterion
Norm-Referenced Cut Score
Set with reference to the performance of a group (or some target segment of a group)
Fixed Cut Score (Absolute Cut Scores)
Reference point - in a distribution of test scores used to divide a set of data into two or more classifications - that is typically set with reference to a judgment concerning a minimum level of profieciency required to be included in a particular classification;