Lec 4 (B) HRA Case Study 1
Lec 4 (B) HRA Case Study 1
Lec 4 (B) HRA Case Study 1
Case study 1
Human Resource Example 1 – Gender & Job
Analytics (HRA) grade (chi-square)
Example 1 – Gender & Job grade (chi-
square)
• Chi-Square Test
• The Chi-Square Test of Independence determines whether there is an association between
categorical variables (i.e., whether the variables are independent or related). It is a
nonparametric test.
• This test is also known as: Chi-Square Test of Association.
• This test utilizes a contingency table to analyze the data.
• A contingency table (also known as a cross-tabulation, crosstab, or two-way table) is an
arrangement in which data is classified according to two categorical variables.
• The categories for one variable appear in the rows, and the categories for the other
variable appear in columns. Each variable must have two or more categories.
• Each cell reflects the total count of cases for a specific pair of categories.
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Example 1 – Gender & Job grade (chi-
square)
The Chi-Square Test of Independence is commonly used to test the following:
• Statistical independence or association between two or more categorical
variables.
• The Chi-Square Test of Independence can only compare categorical variables.
• It cannot make comparisons between continuous variables or between
categorical and continuous variables.
• Additionally, the Chi-Square Test of Independence only
assesses associations between categorical variables, and can not provide any
inferences about causation.
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Example 1 – Gender & Job grade (chi-
square)
Your data must meet the following requirements:
• Two categorical variables.
• Two or more categories (groups) for each variable.
• Independence of observations.
• There is no relationship between the subjects in each group.
• The categorical variables are not "paired" in any way (e.g. pre-test/post-test
observations).
• Relatively large sample size.
• Expected frequencies for each cell are at least 1.
• Expected frequencies should be at least 5 for the majority (80%) of the cells.
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Example 1 – Gender & Job grade (chi-
square)
• We can use a simple diversity analysis that explores whether or not women
tend to be under-represented in senior roles within the organization.
• From a commercial perspective, the organization may be interested in having a
greater diversity of thought in senior, strategic discussions; and from a people
perspective, the organization may want to understand the degree to which there
is a gender balance of positive role models for younger employees.
• The analysis required here is to check for possible discrimination or (for
example) unconscious bias within the organization. To check for this, what an
HR analyst may do is simply to look at how many women versus men work in
different job grades.
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Example 1 – Gender & Job grade (chi-
square)
Analysis purpose
• Possible discrimination according to senior roles
• or unconscious bias) or glass ceiling
• If there was no evidence of any kind of glass ceiling or
discrimination/ unconscious bias within this organization then we
would expect there to be an equal proportion (approximately) of
men and women in each of the eight grades shown in Table 4.1.
Data
• File: Chapter4Diversity1.xlm or Chapter4Diversity1.sav
• 1,493 workers (746 women, 745 men)
• 8 job grades 6
7
• Higher proportion of women in the junior grade
• The dominant roles of men are Managing Consultant and Senor Consultant.
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Example 1 – Gender & Job grade (chi-
square)
chi-square test
• Is there a link between seniority and gender within the organization
(whether there is a gender discrimination factor)
verify whether
• Under the assumption that there is no discrimination, the expected
ratio of men and women in each job class and the actual
• How to check the difference between the observed male and female
ratios
• The larger the bias factor, the larger the difference squared value.
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Example 1 – Gender & Job grade (chi-square)
• Chi-Square Test: Expected Ratio Values VS Actual Observed Ratio Values
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Example 1 – Gender & Job
grade (chi-square)
• How to perform a chi-square test (SPSS)
• Go to Analyze
• Click Reports
• Go to Crosstbs Control Menu
• Select the Gender variable into the ‘Row(s):’
selection box
• Select the JobGrade variable into the
‘Column(s)’ box
• Click on the ‘Statistics’ and select the ‘Chi-
square’ tick box then
• click on the ‘Continue’ box.
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How to perform a chi-
square test (SPSS)
• In Crosstabs control menu click on the
‘Cells’ button
• In ‘Crosstabs: Cell Display’ control
menu (see Figure 4.6) tick on the
‘Observed’ and ‘Expected’ option in
the ‘Counts’ box and the ‘Row’,
‘Column’ and ‘Total’ options in the
‘Percentages’ box.
• Click on ‘Continue’ and once back to
the ‘Crosstabs’ control menu click on
the ‘OK’ button (see Figure 4.6).
• The analysis produced in Figure 4.3
(set out previously) will now appear in
your SPSS output screen ready for the
HR analytics master to use in
persuasive argument
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How to perform a chi-square test (SPSS)
• The key statistics of interest here are the Pearson’s chi-square
statistic of 164.99 and the significance statistic of .000 in the
‘Asymp. Sig. (2-sided)’ column.
• There is meaningful pattern in our gender proportions
• There is a statistically significant link or ‘association’ in this
case, between gender and grade.
• Descriptive statistics show that females are under-represented
in the senior grades and over-represented in the junior grades,
• There is less than 1 in 1,000 chance that this gender proportion
could happen by coincidence,
• hence we know that some other factor has influenced this
proportion, this other factor could be some form of
discrimination.
• a significance level of p<0.001
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