Almost all companies utilize some type of year-end performance review for their

Question

Almost all companies utilize some type of year-end performance review for their employees. Human Resources (HR) at a university's Health Science Center provides guidelines for supervisors rating their subordinates. For example, raters are advised to examine their ratings for a tendency to be either too lenient or too harsh. According to HR, "if you have this tendency, consider using a normal

distributionlong dash—10%

of employees (rated) exemplary, 20% distinguished, 40% competent, 20% marginal, and 10% unacceptable." Suppose you are rating an employee's performance on a scale of 1 (lowest) to 100 (highest). Also, assume the ratings follow a normal distribution with a mean of

48

and a standard deviation of

17.

Complete parts a and

b.

1

Click here to view a table of areas under the standardized normal curve.

a. What is the lowest rating you should give to an "exemplary" employee if you follow the university's HRguidelines?

nothing

(Round to two decimal places as needed.)

b. What is the lowest rating you should give to a "competent" employee if you follow the university's guidelines?

nothing

(Round to two decimal places as needed.)

Explanation / Answer

a) z score corresponding to top 10% of the area = 1.28

Hence,

Lowest rating for "exemplary" employee = 48 + 1.28*17 = 69.76

b) z score for bottom 30% of the area = -0.52

Hence,

Lowest rating for "competent" employee = 48 - 0.52*17 = 39.16

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