Assessment Center Dimensions Predict Performance-Based Bonus in Business Management Settings

Abstract

This study sought to add to the literature on the validity of Assessment centers (ACs) by first examining the factorial structure emerging from observers’ dimension ratings and then examining their predictive validity using a performance criterion often unavailable to researchers—performance-based bonus payment. A series of ACs specially designed for the selection of candidates for entry-mid tier management positions in a large financial corporate (n = 180) was used as the sampling frame. For candidates who were promoted to managerial position we gathered bonus information within 6 - 12 months of their promotion (n = 75). The dimension ratings and factorial structure of the AC were examined to reveal a 2-factor structure pertaining to cognitive and interpersonal aspects of performance. Both the original dimensions and the two factorial grades showed moderate predictive validity using performance-based bonus as the criterion: The ‘organizational commitment’ dimension best predicted bonus payment (r = .38; p < .01) and the interpersonal factorial grade best predicted bonus (standardized b = .22 p < .01), followed by the cognitive factor, after controlling for gender and tenure. The theoretical and practical implications of the findings are briefly discussed.