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[Excerpt] This chapter will discuss utility analysis (VA), which attempts to answer such questions by focusing on decisions about human resources. Utility analysis refers to the process that describes, predicts and/or explains what determines the usefulness or desirability of decision options, and examines how that information affects decisions. In HRM and I/O psychology, the focus lies on decisions involving employment relationships and employee behaviors. Thus, I/O psychologists use the term utility analysis to refer to a specific set of models that reflect the consequences, usually performance-related, of programs designed to enhance the value of the work force to the employing organization.


Suggested Citation
Boudreau, J. W. (1988). Utility analysis for decisions in human resource management (CAHRS Working Paper #88-21). Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced Human Resource Studies.