Validity And Cost/Benefit Analysis Of A Rating System Used For Promotion

Abstract

This paper begins with a discussion of the issues involved in the validity of a rating system and its value to the organization, using the terminology introduced by Landy and Farr (1980).  We then describe a large project in which a rating system was developed and used as part of the promotion process for a complex, high technology organization with several thousand employees.  After describing evidence for the validity of the rating system, we provide a cost benefits analysis.  WE conclude with a description of the decline of the rating system.