Statistics Unit 2

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TO: The Head of American Intellectual Union

FROM: Marlene Seratt

DATE: June 13, 2007

SUBJECT: Data on Job Satisfaction

Dear Sir,

At the outset thank you for involving me in this project. I have studied the sample survey completed on 29 employees of American Intellectual Union. The information collected is very interesting and useful. The five attributes (gender, age, department, tenure and position) provide a detailed profile of each employee and also provide a means of grouping employees. The four parameters chosen to characterize job satisfaction (intrinsic job satisfaction, overall job satisfaction, extrinsic job satisfaction and benefits) (Bluman, 2008) are exhaustive in defining job satisfaction.

This survey provides a mechanism for developing the profile of a person who is highly satisfied and will therefore be able to contribute more to the organization. A composite index of satisfaction can be evolved by taking the simple average of the four parameters, or if it is felt that some of the parameters are more important than others then a suitably weighted average can be determined. A limit can be decided and the persons scoring above the limit can be considered to be satisfied. We can then estimate the probability that a 'satisfied' person will be a man or woman; will be under 21 years of age, between 22 and 49 years or over 50 years; will be from the human resources department or the information technology department or the administration department;

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will be an hourly employee or a salaried employee; will have been with company for less than 2 years or between 2 and 5 years or more than 5 years. Suppose we find that the probability of a satisfied employee is much higher in the information technology department. We can then make a more detailed analysis and replicate the appropriate conditions in the other departments as well.

Decisions based on probability are routinely used in business. One cannot predict with certainty whether the economy in the future will be booming, stagnant or recessionary. Businesses assign probabilities to each of these situations and calculate profits under each of these situations. Then using the laws of probability they arrive at the expected value of the profit. Another situation of uncertainty businesses face is the effect of reducing prices. They know that the output will increase but the question is by how much. Probability is assigned for different increases in quantity and the analysis done using the appropriate models. (Bluman, 2008) Since probability is used in many business situations, it can be applied in the case of enhancing job satisfaction in our organization.

I have done some preliminary analysis of the data, which I am presenting for your reference.

(Gender distribution of males and females in percentage)(AIU)

Total number of respondents = 29

Number of male respondents = 11

Number of female respondents = 18

Percent of male respondents = (11/29) * 100 = 37.9%

Percent of female respondents = (18/29) * 100 = 62.1%

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(Tenure with company distribution by gender)(AIU)

Tenure with company Total Male Female

Less than 2 years 18 7 11

2 to 5 years 5 2 3

Over 5 Years 6 2 4

(Percent of survey participants are in each department)(AIU)

Total number of participants = 29

Number in Human Resources = 4

Number in Information Technology = 8

Number in Administration = 17

Percent in Human Resources = (4/29) * 100 = 13.8%

Percent in Information Technology = (8/29) * 100 = 27.6%

Percent in Administration = (17/29) * 100 = 58.6%

(Mean over all satisfaction by gender)(AIU)

Overall Satisfaction in males

2.8

4.6

5.3

4.8

1.8

4

3

4.6

4.6

4.8

5.8

Mean 4.2