The Motivational Impact of Utility Analysis and HR Measurement

Abstract

This paper addresses the fact that many companies lack insight into the uses of utility theory in HR. Most utility research has been conducted with a view to developing measurement systems rather than measurement effects. Some selected theories of information effects are presented, together with their implications for the application of HR measurement systems. These theories relate to information receivers and goals , HR measurement as decions support as well as decision theory and bias. Special attention is devoted to HR measurements as persuasion , with reference to transmission, receiver and organisation characteristics. Other factors of importance are the selfinterest of senders and the role of “fashion setting” for innovation. One conclusion is that the study of the effects of HR measurements on their receivers provides a fruitful field for empirical research.