public management quantitative method in hrm monday, october 05, 2015 hun myoung park, ph.d. public...

Public Management

Quantitative Method in HRM Wednesday, April 19, 2023

Hun Myoung Park, Ph.D.

Public Management & Policy Analysis ProgramGraduate School of International Relations

2

Histogram for Variables

3

Summary Statistics

Central tendencyMean (average)Median Mode

DispersionVariance Standard deviation 1st Quantile, 2nd Quantile (Median), 3rd

Quantile

4

Histogram and Box Plot 1

5

Histogram and Box Plot

6

7

8

Public versus Private 1

Park and Perry (2013)Analyze General Social Survey data Public employees in government and for-

profit organizations are alike in many respects

Nonprofit organizations (e.g., welfare, health, education) are growing and have employees whose characteristics are different from government employees.

9

Public versus Private 2

10

Public versus Private 3

11

Public versus Private 4

Exit, Voice, Loyalty, Neglect 1

• Based on Hirscheman (1970) and Farrell (1983)

• Classify employees’ status into four groups and analyze its transition

• Here Markov chain is employed for five statuses (i.e., loyalty, voice, neglect, exit, and lay off) even though some assumptions may be violated.

12

Markov Chain Diagram 1

Loyalty

Lay-off

NeglectVoice

.25 .25

.10.15

.05

.40 .45 .55

1.0

.05

Exit

1.0

.20

.10 .15

.10

.20

Exit, Voice, Loyalty, Neglect 2

• Loyalty is to stick with the firm before reacting to the problem

• Voice is any attempt to change rather than to escape from an objectionable state

• Neglect is to lax, disregardful, and inattentive behavior (e.g., absenteeism, lateness, low commitment)

• Exit is to quit or leave the job (turnover) • Lay-off is kicked out of the organization

14

Exit, Voice, Loyalty, Neglect 3

• Suppose that the average number of employees in loyalty is 100

• 300 in voice, 600 in neglect

• The cost of loyalty is $0 per employee per year, $10K for voice, and $50K for neglect

• Ignore the cost of exit (turnover)

• Then what is the total cost that the organization has to pay?

15

Transition Matrix

Q and R matrices

Fundamental Matrix

• Period during which an employee will stay in non-absorbing state before being absorbed in one of two absorbing states

Calculating the Total Cost

• Cost of voice: $10M = (1.04*100 + 2.13*300 + .47*600) * 10K

• Cost of neglect: $101M = (1.36*100 + 1.26*300 + 2.50*600) * 50K

• Total cost: $111M = $10M + $101M

Absorption Probability Matrix

• Probabilities that an employee in each state will exit or being laid off (absorbing states) eventually.

Impact of New Leadership

• What if a new democratic leadership change the organization?

• How does transition matrix (employees’ status) look like?

• What are the portion of loyalty, voice, and neglect?

• What is the total cost that the organization have to pay?

• Does the new leadership work?

Markov Chain Diagram 2

Loyalty

Lay-off

NeglectVoice

.25 .05

.05.15

.02

.60 .50 .20

1.0

.30

Exit

1.0

.05

.08 .10

.30

.10

.25

Calculating the Total Cost

• Cost of voice: $28M = (2.68*100 + 3.84*300 + 2.28*600) * 10K

• Cost of neglect: $56M = (.47*100 +.44*300 + 1.56*600) * 50K

• Total cost: $84M = $28M + $56M

• Impact of the new leadership: $27M = $111M - $84M

• Voice is costly but productive!