# Business Problem: Statistical Analytics

Pages: 4 Words: 890

## Question :

Unit Learning Outcomes covered in this assessment

1. Understand fundamentals of statistics and its application in business
2. Assess when and how to use statistical analysis.
3. Solve statistical problems using analytical methods.

Apply knowledge of related statistical analytical techniques as related to business problems.

Assignment Description

Students are required to produce an individual assignment using data provided. Data is available on BB108 Moodle shell in the folder named [Data set]. You need to use Business Statistics theory, concepts, tools and terminology that you have learnt from weeks 1 to 5 to analyse the data and to write up the assignment.

Data set [Job Satisfaction] is from a global corporation. Three hundred employees of the company globally have been surveyed regards their job satisfaction in the company.

1. The variables include:
1.  ID
2.  “Gender” –1= male or 2=female
3.  Marital status (Married, single)
4. Age
5. Years of experience
6. City  that they come from (areas coded from 1 to 5)
7. Region they come from (east, west, south, north)
8. Departments (1=IT, 2=Marketing, 3= Sales, 4= HR, 5= Finance  6=Innovation)
9. Salary (in thousands)
10. Job satisfaction score before training (1= extremely dissatisfied; 5=extremely satisfied)
11. Job satisfaction score after training (1= extremely dissatisfied; 5=extremely satisfied)
12. Life happiness score (1= extremely unhappy; 10=extremely happy)
13.  Promoted (yes, No)

Assignment instructions:

The main challenge in the business is deterioration in job satisfaction among the employees. For this reason the company HR has decided to conduct a survey and identify satisfaction level of the employees. They measure employees satisfaction in two periods of before and after training.

Using statistical theory and application to answer the main research questions below. Also consider the dataset and answer any other research questions that are meaningful to you.

As guide - answer these main research questions. They should be analysed and illustrated through graph or chart or table or a combination:

1. What is the frequency of each of the variables? E.g. married vs unmarried.
2. Are there any meaningful differences between the job satisfaction score before and after training?
3. Are there any differences in the gender on job satisfaction? Both for satisfaction before and after training.
4. Are there any differences in gender on age?
5. What measures of location/variables you can use to present the data?
6. What measures of variation/variables you can use to present the data?

Note: This is only a guide and there are no right and wrong answers when it comes to statistical analysis. You must know and demonstrate your knowledge of this.

Assignment structure:

• Introduction– Introduce the business and its problems.
• Describe the company, what does it do
• Problem definition and business intelligence required
• Defining problem of the business and what they are trying to achieve by the analysis
• If you used any measures (e.g. measures of variation) explain why it was most

appropriate by defining what that particular measure is and what it does

• Identifying the data variables as data types and measurement scales
• Are the variables in the data Numerical, nominal/categorical, or ordinal. What are the scales of measurements?
• Descriptive statistics
• Measures of location
• Descriptive statistics
• Measures of variation
• Methods of data summarising
• This includes Presenting the relevant descriptive statistics through data visualization/ graphical displays (Tables, graphs, pie charts etc.).
• Discussion of the results and recommendations
• Based on the analyses what conclusions about the business can be summarized/drawn and what recommendations can be offered.

Introduction

Through the information provided, it can be stated that the business seems to have a problem of low level of job satisfaction among its employees. There are a total of 300 employees working currently in the company. The company has a female dominated work environment; out of 300 workers 38% are male and rest 62% are female employees.

84% of the employees are married and 16% are single. 18% of the employees are of age group 30 years and below, 26% of the employees are of age group 30-40 years, 32% of the employees are of age group 40-50 years and rest 24% of the employees are of age group 50-60 years old.

The company shows a fairly good rate of Employee’s retention rate, in spite of the not so good job satisfaction score among the employees. There are about 17% of the employees who have been working with the company for 10 years or less and the rest 83% of the employees have been working in the company for 10-40 years. The highest percentage of employees working for the firm are that of 25-28 years of experience, and the retention rate starts dropping after 28 years significantly.

This shows that the employee turnover increases after being working in the firm for 25-28 years.

 Variables (Gender) Frequency (f) F = f/n *100 Male (1) 114 38% Female (2) 186 62% 300 (n)

 Variables (Marital Status) Frequency (f) F = f/n *100 Married 252 84% Single 48 16% 300 (n)

 Variables (Age) Frequency (f) F = f/n *100 20 6 2.00% 22 6 2.00% 24 3 1.00% 28 15 5.00% 30 24 8.00% 32 24 8.00% 34 9 3.00% 36 18 6.00% 38 15 5.00% 40 12 4.00% 42 21 7.00% 44 21 7.00% 46 27 9.00% 48 18 6.00% 50 9 3.00% 52 6 2.00% 54 41 13.67% 56 12 4.00% 58 6 2.00% 60 7 2.33% 300 (n)

 Variables (Years of experience) Frequency (f) F = f/n *100 1 4 1.33% 2 6 2.00% 3 4 1.33% 4 2 0.67% 5 16 5.33% 6 4 1.33% 8 11 3.67% 9 4 1.33% 10 1 0.33% 12 21 7.00% 13 8 2.67% 14 8 2.67% 15 16 5.33% 16 4 1.33% 18 1 0.33% 20 15 5.00% 21 7 2.33% 22 11 3.67% 23 16 5.33% 24 2 0.67% 25 23 7.67% 26 17 5.67% 27 16 5.33% 28 23 7.67% 30 15 5.00% 32 15 5.00% 33 15 5.00% 34 5 1.67% 35 5 1.67% 36 5 1.67% 300 (n) z

Problem definition and business intelligence required

The problem that the company is facing is that of job satisfaction among its employees. There is very low level of job satisfaction score prevailing in the company as the moment because of which company has conducted a survey to analyze the reasons of lack of satisfaction and in which group it’s most prevalent, e.g. which gender, which age group, employees of what marital status and region, and so on.

Keeping in mind the low level of satisfaction amongst its workforce, the company is giving training to its existing employees to increase their motivation and drive towards working for the company, which in turn would increase their level of job satisfaction. The company is recording the before and after satisfaction level amongst the employees to analyze effectiveness of training on the employees.

Hence, the Job Satisfaction Score is to be measured and analyzed in two different phases, i.e. Job Satisfaction Score before training and Job Satisfaction Score after training, to understand the effects of training on employees in a better way.

Data Type and Scale of measurement-

The job satisfaction of the employees is measured on a scale of 1 to 5. 1 being the least satisfied and 5 being the most satisfied.

The data set provided by the company is based on a survey conducted. The data is very exhaustive and contains all the required information necessary for an adequate analysis of the problem.

Data summarization and graphical presentation

As per company’s statistics, the job satisfaction score of the employees before the training are as follows-

1. 205 out of 300 employees are measured to have job satisfaction of 2 or below on the scale, i.e. 68% of the employees are not satisfied with their job at all.
2. 69 out of 300 employees, i.e. 23% of the employees are averagely satisfied with a score of 3 on the scale.
3. Only 26 out of 300 employees, i.e. 9% of the employees of the company are substantially satisfied with their job.

After providing training to the employees, the changed job satisfaction score of the employees are as follows-

1. 39 out of 300 employees are measured to have job satisfaction of 2 or below on the scale, i.e. 3% of the employees are not satisfied with their job at all.
2. 134 out of 300 employees, i.e. 45% of the employees are averagely satisfied with a score of 3 on the scale.
3. Only 127 out of 300 employees, i.e. 42% of the employees of the company are substantially satisfied with their job.
 1 2 3 4 5 Job Satisfaction score before training 93 112 69 24 2 Job Satisfaction score after training 8 31 134 44 83

To further understand the effectiveness of training on employees, let’s analyze the statistics available to us through pie charts-

As per the above-mentioned stats, it can be observed that there has been a significant change in the job satisfaction score amongst the employees. The average job satisfaction score has gone up substantially, i.e. the average score of employees was 2.1 before the training, which has now gone up to 3.5 after the training.  A detailed analysis of difference in score has been presented below.

 1 2 3 4 5 Job Satisfaction score before training 93 112 69 24 2 Job Satisfaction score after training 8 31 134 44 83 Difference 85 81 -65 -20 -81

It is clear that the total no. of employees with score of less than 2 has been decreased 2 whereas the no. of employees with a score of 3 or more has been increased. Hence, it can be concluded that the attempt of the company to improve job satisfaction among its employees through training has been successful.

Impact of Gender on Age

To understand the impact of gender on the age groups of the existing base of workforce in the company, we need to segregate the age groups as per gender and then analyze the data. The stats related to the same is presented below in the table-

 20-30 31-40 41-50 51-60 Total Male 15 22 35 42 114 Female 39 56 61 30 186 54 78 96 72 300

Since the total no. of male employees and female employees are different, a percentage presentation of the data would give a better and accurate insight.

 20-30 31-40 41-50 51-60 Total Male 13.16% 19.30% 30.70% 36.84% 100% Female 20.97% 30.11% 32.80% 16.13% 100%

As we can see, the age group of male employees is more on the older side, i.e. there are more male employees who belong to the age group of 40-60 years than those who belong to the age group of 20-40.

On the other hand, the female employees working in the company are younger. The no. of employees under age group of 20-40 years are more than employees under the age group of 40-60.

The most no. of male employees working in the company are of age group 50-60 and the least no. of male employees working in the company are of age group 20-30. Whereas, the most no. of female employees working in the company are of age group 40-50 and the least no. of male employees working in the company are of age group 50-60. The average age of all the female employees in the company is 40 years contrary to the average age of all the female employees in the company, which is 45 years. Hence, it can be accurately concluded that the female employees of the company are a younger lot than the male employees.

Measures of location:

To understand the location variable, let’s first build out a table using the statistics given to us.

 Variables (Region) Frequency (f) F = f/n *100 East 71 23.67% West 123 41.00% North 47 15.67% South 59 19.67% 300 (n)

So, we can observe that the majority of the employees working in the company belong to the West region and the region from where there are the least no. of employees is the North region.

The pictorial presentation of the regional distribution of employees is as follows

Results and Recommendations-

Based on the analysis and calculations, we can adequately conclude that the company has a diverse group of current employees. Coming from different regions, age-groups and backgrounds, it can be difficult for the HR to keep the workforce happy, satisfied and motivated at all times. However, to keep the workforce focused towards the organizational objectives, the HR needs to introduce monetary as well as non-monetary techniques of motivation amongst the employees. Training of employees is one of such non-monetary technique to motivating the employees and improving their productivity.

The technique of training implemented by the HR to motivate the employees and improve their job satisfaction score has been successful as there has been a substantial increase in the job satisfaction score of the employees.

Apart from training the employees, following techniques or initiatives can be adopted by the HR for maintain the Job Satisfaction score of the employees in future as well-

1. Maintaining an inclusive work culture for the diverse workforce
2. Providing increments and bonus,
3. Recognition of achievements and hard work,
4. Providing sufficient time off-work to maintain work-life balance of employees,
5. Setting goals for smaller periods to keep the zeal going,
6. Providing them enough opportunities to fulfill their personal goals in life through the organization.
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