MULTIATTRIBUTE UTILITY ANALYSIS USING THE PROMES APPROACH

Traditional utility analyses have focused on the economic value of inc reased job performance. While providing a great deal of information to decision makers, such approaches fail to account for other potentiall y critical outcomes of implementing a selection system (e.g. legal exp osure). This paper proposes a new method for incorporating multiple ou tcomes in utility analysis. An example shows how to incorporate econom ic gains due to job performance, legal exposure, effect on protected g roups, and organizational image in the decision to implement a new sel ection system. Integrating these four outcomes into utility analysis c aptures managerial policy that will allow examination of the 'process' of using utility information to aid decision making. In addition, the method is amenable to use of sensitivity, breakeven, and Monte Carlo analyses advocated by utility researchers (Boudreau, 1991).