LIR832-SPRING-2007-problem set 2

LIR832-SPRING-2007-problem set 2 - LIR 832 Problem Set #2...

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LIR 832 Problem Set #2 1. There are many theories about how one might improve productivity and at least 15 consulting firms marketing programs based on each theory. One of the more interesting approaches draws on the Roman Emperor Caligula’s profound observation about the nature of leadership (“Let them hate me so long as they fear me”). Based on this theory, we would expect that regular punishment of employees for errors should result in improved productivity. We decide to test this among a group of clerical workers. We have developed a measure of output for these workers and long experience shows that these workers average a score of 55 with standard deviation of 16. We propose to test the Caligula approach by placing 64 of these employees in a situation in which they will have a sign placed over their workstation whenever they make more than one mistake a day. The sign remains up for one day. This pilot group constitutes our sample. A. Write out the null and alternative hypothesis for our study B. We run this pilot for two weeks and measure the average output score in the second week. The average score for the second week is 58.5. Can we reject the null hypothesis at the 10% level? At the 5% level? At the 1% level?
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2. We regularly administer a developmental examination to new employees to see where they will best fit into the organization. The average score on these examinations has been 1000 with standard deviation of 11.8 for as long as anyone can remember. With the current slackness in labor markets, we believe that the underlying pool of applicants may be different from those we have recruited in the past. We notice that the current group of 25 new employees has higher educational achievement than those in the past, but that they also come from different backgrounds and have a different type of life experience. We are concerned that these individuals will fit the firm differently than previously, but we don’t know if the fit will be better or worse. A. Set up a null and alternative hypothesis for the appropriate test on this group of new employees. B. After testing this group, we find the average score on their examination was 996. Can we reject the null hypothesis in a 10% test, a 5% test, a 1% test?
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3. The unofficial slogan of Russian manufacturing is “They pretend to pay us, we pretend to work.” As human resources director of a 100-employee plant of Russia Manufacturing, we are finding that, on average, 15 workers fail to report to work each day (as of November 15, 2003). Of course, this displeases the corporate office in Moscow, Idaho, which suggests that the average number of absences must be below 10 per day next year. If we fail to meet this goal, in 2004, our boss hints that they have a HR position in a plant which “makes Siberia look like the Rivera” After two weeks of internal discussion within the HR department, we announce to the workforce that a no-fault attendance policy is going to be implemented and enforced,
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LIR832-SPRING-2007-problem set 2 - LIR 832 Problem Set #2...

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