Studies in Personnel and Industrial Psychology

By Edwin A. Fleishman | Go to book overview

10. Measuring On-the-Job Performance-- Applying Cost Accounting Concepts to Criterion Construction*
Hubert E. Brogden and Erwin K. TaylorIT IS GENERALLY agreed that the most important problem facing the industrial psychologist interested in test validation is devising adequate criteria of industrial efficiency. In spite of this, too little effort is usually expended in criterion development. The criteria used are too frequently those most immediately available rather than those which would be most desirable.This article emphasizes the need for a common metric for sub-criterion variables, such that the measures obtained reflect the contribution of the individual to the objectives (or, usually to the overall efficiency) of the hiring organization. The principles to be discussed are pertinent to a number of possible common metrics. It is proposed in particular, however, that dollar units, determined on a cost accounting basis, will be found the most desirable units for many criterion purposes. For convenience this discussion will be confined to such monetary units--since the authors believe these to be most generally useful for criterion purposes. In addition, it is their opinion that the cost accounting criterion makes possible a more definitive solution of related problems in the area of personnel selection and differential placement.The criterion problem under discussion in this article is the development of an overall index of an employee's value to the hiring organization.
THE MAJOR CRITERION PROBLEMS
To provide background for the discussion to follow, we will consider, briefly, some of the major criterion problems and indicate the relationship between these problems and the concept we are proposing. The principal problems encountered in criterion construction are, we believe, included in the following discussion.
1. Definition of the job. Before any type of criterion construction can be undertaken, the job involved must be defined in order to identify a
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*
From "The Dollar Criterion--Applying the Cost Accounting Concept to Criterion Construction," Personnel Psychology, Vol. 3, 1950, pp. 133-54.

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