THE FUTILITY OF UTILITY ANALYSIS

In a study involving 143 experienced managers, utility analysis was fo und to influence managerial decision making, but not in the way intend ed by advocates of this technique. Utility analysis reduced the suppor t of managers for implementing a valid selection procedure, even thoug h the analysis indicated that the net benefits from the new procedure were substantial. In light of these findings, industrial/organizationa l psychologists are advised to reconsider their assumptions regarding the information managers use when managers make human resource policy decisions.