Many assessment instruments used in the service industry have inadequate psychometric properties because they neither rely on modern test theory nor do they take into account item bias.
Yet, these issues are critical when global businesses require crosscultural assessment. Using actual employee-satisfaction data from a major hotel chain, we show that poor measurement and lack of bias testing predictably leads to spurious results that can negatively affect a company's bottom line.
In contrast, customization of assessments using modern analytics and bias testing yields powerful insights from data that are actionable, evidence-based and can provide a substantial return on investment.
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