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 provide 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 distribution 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 51 and a standard deviation of 15. Complete parts a and b. What is the lowest rating you should give to an "exemplary" employee if you follow the university's HR guidelines? Square (Round to two decimal places as needed.) What is the lowest rating you should give to a "competent" employee if you follow the university's guidelines? Square (Round to two decimal places a needed.)

Explanation / Answer

a)What is the lowest rating you should give to an “exemplary” employee if you follow the Univ. of Texas HR guidelines?
z =NORMSINV(0.9) = 1.282 .........................Using Excel =NORMSINV(0.9) function

15*(1.282) + 51 = 70.23

70, lowest rating you should give to an “exemplary” employee

b) What is the lowest rating you should give to an “competent” employee if you follow the Univ. of Texas HR guidelines?
z =NORMSINV(0.3) = -.524
15*(-.524) + 51= 43.14,
43, the lowest rating you should give to an “competent” employee

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