THE FUTILITY OF UTILITY ANALYSIS REVISITED - WHEN EVEN AN EXPERT FAILS

The effect of utility analysis on managerial decisions regarding the u se of a valid selection test was investigated. Experienced managers (n = 41) were randomly assigned to one of three conditions. The control condition contained written advice to adopt new selection procedures f rom a hypothetical psychologist that included an explanation of valida tion procedures. The second condition contained the same written infor mation and advice as the control condition plus written support of tha t advice from a hypothetical trusted adviser. The third condition cont ained all the material that was presented in the control condition plu s a written explanation of utility analysis, an actual utility analysi s showing that large financial benefits would flow from using the prop osed procedures, and a video-taped presentation from an expert on util ity analysis where the logic underlying utility analysis and its benef its were explained. The expert was then presented live to the audience to address any questions that might have arisen from the utility anal ysis or the video. An ANOVA revealed that the presentation of a positi ve utility analysis reduced support for implementing a valid selection procedure, even though the logic and merits of utility analysis as a decision-making tool were described by an internationally recognized a uthority.