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Utility concern when choosing Assessment method


Utilityconcern when choosing Assessment method

UtilityConcerns in Choosing an Assessment Method


Validityof the approaches to assessment and selection of the cost toadminister and develop each method of assessment is a factor that isput into consideration in selection methods. There are various termsthat are related to the effectiveness such as validity, reliabilityand utility. The most important aspect of selection is validity.Validity is the extent to which selection process scores predictimportant criteria. In addition, while the area of interest is jobperformance, many companies may have an interest in terms of how longan employee will stay whether he will be faithful, accidents andviolence. However before embarking on the validity, it is good tocheck on the reliability of measures. In the case study, Randydecides to invest and his aim is to open a chain of ice cream stores.The prediction is that he has enough money to invest. Nevertheless,he has a task of staffing the shop. The case study is aimed atadvising him on the best selection process, savings and thelimitations inherent in the estimates (Heneman,Gerhard, &amp Tim Judge, 2012).

Savingsusing selection methods Work Sample and Interviews

Interviewsand Work Sampling

Predictorversus random selection formula

(Ns*T*r*SDy*Zs)- (N*C)

Wage=$6 per hour

Wageper year $12,000

Ns=applicants selected 50

T=Tenure of group selected (assumption) 1 year

r=correlation between job performance and interview (predictor) =.30

SDy=Jobperformance standard deviation (assumption 40% of the base payment)

r=correlation between job performance and work sample (predictor) = .50

N=Number of applicants =100

Zs=Average standard score predictor of group selected =.80

C=costper applicants for the interview, 100

C=costper applicant for the work sampling, 150

N=Numberof applicants

Note:The values of SDy and T assumptions


Interviewsmethod 47,600 = {50(1)* (.30)* (4800)*(.80)} -{100(100)}

WorkSampling= {50(1) (.50) (4800) (.80)}-{100(150)} = $81,000

Themethod that Randy would use

Fromthe study, it is clear that business sampling method of assessment isthe most viable means if and only if Randy was driven solely byeconomic gain. Nevertheless, if it is vital to assess the company orthe person match in addition to the business or person match, theinterview method is the best method of assessment by giving morevalid measure. In the same regard, there are dimensions of theperformance that are not captured by the work sampling assessmentprocess then, the interview may be a better design (Heneman,Gerhard, &amp Tim Judge, 2012).

Whenthe number of employees increases to 200 as a result of moreapplications, Randy will increase as belowforquestion one and two.

Economicgain for the first question

InterviewMethod = $57,600 – $20,000 = $37,600

WorkSampling = $96,000 – $30,000 = $66,000

Economicgain for the second question

Anumber of applicants of 200 people rather than one single personwould slow the level of economic profit that is associated with theuse of the predictors work sampling and the interviews. In instanceswhere applicants are ranked on selection procedures and theapplicants scoring below the basic scope that is appropriate haveminimal chances of being selected for employment (Heneman,Gerhard, &amp Tim Judge, 2012).A higher cutoff score may be essential, but the extent of the resultshould be put into consideration. Drawing the argument on the number,the work sampling still gives a higher economic profit for anybusiness.

Limitationsof the estimates

Therewas no data availability for the tenure of the selected group andthus the standard deviation he reliance was on assumptions on ofbusiness. Thus, a rough estimate of one year was offered since thismight be an expectation for such investment. Nevertheless, the errorsposed by these estimates might be relatively. As a result, thesewould impact significantly on the estimates of economic profit. Secondly, the figures of the performance are just but a roughestimate. Thirdly, the validity of the coefficient presentedrepresents the average validities that were reported for the worksampling and the interview. The average might, therefore, not poseaccurate indicators of the consecutive validities of the methods ofthe ice cream investment.


Randyis a young businessman who wants to start an ice cream business. Heis posed with a challenge of staffing. Validity of the approaches toassessment and selection of the cost to administer and develop eachmethod of assessment is a factor that is put into consideration inselection methods. The above case study is a rough estimate that haslimitations. Nevertheless, the transcendental finale presents a roughestimate which can be used in establishing any form of business. Boththe interviewing and work sampling assessment methods have advantagesand disadvantages depending on the factors that are put intoconsideration. In instances where applicants are ranked on selectionprocedures and the applicants scoring below the basic scope that isappropriate have minimal chances of being selected for employment. Ahigher cutoff score may be essential, but the extent of the impactshould be put into consideration.


Heneman,Gerhard, H., &amp Tim Judge, a. J.-M. ( 2012). StaffingOrganizations. .Middleton, WI: Mendota House.