Utility Analysis

Posted in Human Resource Terms, Total Reads: 898
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Definition: Utility Analysis

Utility Analysis deals with the utility of a particular intervention. Increase in labour force leads to the increase in productivity. This gain in productivity converted into its $ value is called Utility of the intervention (in this case, the increase in labour force).


Steps to determine utility

a) A method to determine the increase in productivity due to increase in labour force

b) A method to convert this increase into $

c) A distribution curve of productivity vs. labour force

d) Dollar value of one standard deviation in productivity with respect to one standard deviation in labour force

e) A formula for utility based on observation from the study

 

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