AN INVESTIGATION OF THE PREDICTIVE-VALIDITY AND ECONOMIC UTILITY OF THE ASSESSMENT-CENTER FOR THE HIGH-MANAGEMENT LEVEL

Final ratings on twenty-five assessment dimensions were obtained for 3 82 candidates for high-level management positions in an Israeli corpor ation. They were determined by an assessment center process, two overa ll clinically derived assessment scores and an overall mechanically de rived assessment score. For 49 of the assessees, scores were also avai lable on a battery of paper-and-pencil cognitive tests administered at the preemployment stage. For all candidates, data were obtained on tw o criterion measures over a period of four years. In contrast to previ ous assessment center research, both the general intelligence rating f ormulated in the assessment center and the scores on the cognitive tes ts were found to be predictively invalid, while the personality measur e proved valid. Despite the modest coefficients of predictive validity found for the other assessment center predictors, the economic utilit y analysis performed with an amended formula demonstrated a considerab le cost-effectiveness for the assessment center program. Implications of the findings are discussed with a focus on the practical and econom ic value of the assessment center.