Cutoff Scores that Optimize the Utility of a Fixed Quota of Successful Employees Selection Decision

The new utility model, proposed previously by the author, is used to establish test cutoff scores that optimize the utility of a ‘fixed quota of successful employees selection decision’. Within the model, the problem can be formulated as a constrained non-linear program, and, to obtain the solution, a sequential quadratic programming method is implemented. Next, the approach is illustrated by means of an example application which relates to the selection of a fixed quota of five successful employees for an entrance management position. Apart from detailing certain computational aspects of the procedure, the example allows also to clarify the issue of practical relevance. Finally, the limitations, as well as a generalization of the procedure to the simultaneous estimation of both optimal test and criterion cutoffs, are discussed.