Effect of Organization Size on Validity of Intelligence Score as a Predictor of Executive Success

Published Online:https://doi.org/10.1287/mnsc.10.2.385

A population of 428 pre-1944 male Stanford Graduate School of Business MBAs was analyzed for association between executive success criteria and pre-MBA-award intelligence score on either the Thorndike Examination for High School Graduates or the Ohio State University Psychological Test, controlling for size of employing organization (large N = 99, medium N = 221, and tiny N = 108). The only significant validity coefficient was −0.30 (1% level) with the criterion “job interest.” The null hypothesis was rejected for that coefficient, but a warning is given against generalizing or inferring practical implications from this or any similar study at today's primitive stage of executive success prediction research. Management philosophy is undergoing a profound transition from folklore to science. Research is needed to test the validity of existing folklore practices and to test the new hypotheses of management-science scholars. Traditional intelligence tests such as the Thorndike or Ohio have not adequately shouldered the burden of proof to justify their use in executive selection, whatever the organization size.

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