Therese Macan, Matthew R. Lemming and Jeffrey L. Foster
The present study aims to examine how adjustments to utility analysis (UA) estimates and restructuring UA information to include a tabular format affect managerial acceptance of a…
Abstract
Purpose
The present study aims to examine how adjustments to utility analysis (UA) estimates and restructuring UA information to include a tabular format affect managerial acceptance of a selection test.
Design/methodology/approach
Managers across organizations (n=185) indicated whether they would accept and implement a new selection test based on a hypothetical scenario. They were randomly assigned to different scenarios based on UA dollar estimate size and visual format of the information.
Findings
Overall, managers were indifferent to the dollar size of the UA estimate and were not influenced by presentation format. Managers did report use of UA information when making decisions and qualitative analyses revealed several patterns that help explain why this information was useful.
Practical implications
When presenting UA information, practitioners should reexamine how they build support for both sides of the benefits‐costs equation, potentially adding information beyond UA dollar amounts such as legal liability and company reputation.
Originality/value
The quandary remains regarding how to communicate the value of human resource initiatives to organizational stakeholders. The paper adds to the literature by investigating two variables not previously examined, the size of UA dollar estimates and the format used to present UA information. More importantly, the study incorporates a unique qualitative component to better understand managers' use or non‐use of UA and corresponding rationale.