“An Examination of Two Alternative Techniques to Estimate the Standard Deviation of Job Performance in Dollars”, 1985-11-01 (; similar):
Two methods for estimating dollar standard deviations were investigated in a simulated environment. 19 graduate students with management experience managed a simulated pharmaceutical firm for 4 quarters. Ss were given information describing the performance of sales representatives on 3 job components.
Estimates derived using the method developed by F. L. et al 1979 were relatively accurate with objective sales data that could be directly translated to dollars, but resulted in overestimates of means and standard deviations when data were less directly translatable to dollars and involved variable costs. An additional problem with the Schmidt et al procedure involved the presence of outliers, possibly caused by differing interpretations of instructions. The Cascio-Ramos estimate of performance in dollars (CREPID) technique, proposed by W. F. 1982, yielded smaller dollar standard deviations, but Ss could reliably discriminate among job components in terms of importance and could accurately evaluate employee performance on those components.
Problems with the CREPID method included the underlying scale used to obtain performance ratings and a dependency on job component intercorrelations.