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 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 54 and a standard deviation of 13. Complete parts a and b. a. What is the lowest rating you should give to an "exemplary" employee if you follow the university's HR guidelines? (Round to three decimal places as needed.) b. What is the lowest rating you should give to a "competent" employee if you follow the university's guidelines? (Round to three decimal places as needed.)

Explanation / Answer

a) z score corresponding to top 10% area = 1.282

Hence,

Lowest rating for exemplary employee = 54 + 1.282(13) = 70.660

b) z score corresponding to below 30% of the area = -0.524

Hence,

Lowest rating for competent employee = 54 - 0.524(13) = 47.183

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