Raju, Burke, and Normand (1990) proposed a new procedure for estimating the dollar value contribution of personnel selection programs. This paper suggests some modifications to their procedure following applications in two Australian samples and contributes to the ongoing development and refinement of these models. The results show that, depending on the definition of a particular parameter in the procedure, the new approach might give higher or lower estimates of the dollar value contribution of personnel selection programs than the more widely used Schmidt, Hunter, Mckenzie and Muldrow (1979) procedure. Difficulties in applying the new procedure and possible limitations of this study are also discussed. These results also contribute to the growing international database of utility estimates which is comprised mainly of North American data at present.
Asia Pacific Journal of Human Resources – Wiley
Published: Apr 1, 1999
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