WHAT WOULD-BE IF WHAT IS WASNT - REJOINDER

In their critique of N.S. Raju, M.J. Burke, and J. Normand's (1990) utility model, M.K. Judiesch, F.L. Schmidt, and J.E. Hunter (1993) claimed that Raju et al. simply shifted the problem from one of estimating the standard deviation of the dollar-valued performance (Y) to that of estimating the coefficient of variation (sigma(y)/mu(y)). In showing the inaccuracy of this claim, the authors demonstrate that Judiesch et al.'s misunderstandings of the underlying assumptions of Raju et al.'s model have led to their misinterpretations. Furthermore, the authors refute Judiesch et al.'s contentions that (a) the A parameter in Raju et al.'s model is equal to average employee value and (b) it is appropriate to correct the validity coefficient for criterion unreliability when conducting a utility analysis. A more detailed discussion of the issues relating to transforming the original performance scale is offered.