Utility Analysis for Decisions in Human Resource Management

Abstract

[Excerpt] This chapter will discuss utility analysis (VA), which attempts to answer such questions by focusing on decisions about human resources. Utility analysis refers to the process that describes, predicts and/or explains what determines the usefulness or desirability of decision options, and examines how that information affects decisions. In HRM and I/O psychology, the focus lies on decisions involving employment relationships and employee behaviors. Thus, I/O psychologists use the term utility analysis to refer to a specific set of models that reflect the consequences, usually performance-related, of programs designed to enhance the value of the work force to the employing organization.