Section Sixcash flows from such utility gains can then be projected out
into the future and then discounted to arrive at a net present
value of investing in the new test. However, the period of time
over which such gains will be accrued will be reduced by
changes in the jobs that reduce the validity coefficient. (For
readers who desire to probe further into the details of methods
for determining the value of better performance or the
standard deviation of dollar contributions, selection ratios,
standardized scores, validity, and the formula used in this
example, books by Schmitt and Klimoski and Wayne Cascio
provide excellent reference sources.)^42
Training
As noted earlier, one of the most neglected areas in human
resource management is the evaluation of training
effectiveness. Such failures to evaluate training have been
identified by Steven Kerr, as a classic example of misdirected
reward structures, or “rewarding A while hoping for B.” In a
typical scenario, the proponent of the training, who
championed the financial outlay, will collect anecdotes and
testimonials that provide “evidence” of the success of the
program.^43
The last thing many desire is a formal,
systematic, and revealing evaluation. Although