Question No. 2 - MCO-03 - Research Methodology and Statistical Analysis

Solutions to Assignments

                               MCO-03 - 

    Research Methodology and Statistical Analysis

Question No. 2 

(a) What do you understand by the term Correlation? Distinguish between different kinds of correlation with the help of scatter diagrams. 

Correlation refers to the statistical relationship between two entities. In other words, it's how two variables move in relation to one another. Correlation can be used for various data sets, as well. In some cases, you might have predicted how things will correlate, while in others, the relationship will be a surprise to you. It's important to understand that correlation does not mean the relationship is causal.

To understand how correlation works, it's important to understand the following terms:

- Positive correlation: A positive correlation would be 1. This means the two variables moved either up or down in the same direction together.

- Negative correlation: A negative correlation is -1. This means the two variables moved in opposite directions.

- Zero or no correlation: A correlation of zero means there is no relationship between the two variables. In other words, as one variable moves one way, the other moved in another unrelated direction.

A scatter diagram is used to examine the relationship between both the axes (X and Y) with one variable. In the graph, if the variables are correlated, then the point drops along a curve or line. A scatter diagram or scatter plot gives an idea of the nature of relationship.

In a scatter correlation diagram, if all the points stretch in one line, then the correlation is perfect and is in unity. However, if the scatter points are widely scattered throughout the line, then the correlation is said to be low. If the scatter points rest near a line or on a line, then the correlation is said to be linear.

Types of Scatter Diagram

You can classify scatter diagrams in many ways; I will discuss the two most popular based on correlation and slope of the trend. These are the most common in project management.

According to the correlation, you can divide scatter diagrams into the following categories:

- Scatter Diagram with No Correlation

- Scatter Diagram with Moderate Correlation

- Scatter Diagram with Strong Correlation

- Scatter Diagram with No Correlation

This diagram is also known as “Scatter Diagram with Zero Degree of Correlation.”

Here, the data point spread is so random that you cannot draw a line through them.

Therefore, you can say that these variables have no correlation.

Scatter Diagram with Moderate Correlation

This diagram is also known as “Scatter Diagram with a Low Degree of Correlation”.

scatter-diagram-with-moderate-correlation

Here, the data points are a little closer and you can see that some kind of relationship exists between these variables.

Scatter Diagram with Strong Correlation

This diagram is also known as “Scatter Diagram with a High Degree of Correlation”.

In this diagram, data points are close to each other and you can draw a line by following their pattern.

scatter-diagram-with-strong-correlation

In this case, you say that these variables are closely related.

As discussed earlier, you can categorize the scatter diagram according to the slope, or trend, of the data points:

- Scatter Diagram with Strong Positive Correlation

- Scatter Diagram with Weak Positive Correlation

- Scatter Diagram with Strong Negative Correlation

- Scatter Diagram with Weak Negative Correlation

- Scatter Diagram with Weakest (or no) Correlation

A strong positive correlation means a visible upward trend from left to right; a strong negative correlation means a visible downward trend from left to right. A weak correlation means the trend is less clear. A flat line, from left to right, is the weakest correlation, as it is neither positive nor negative. A scatter diagram with no correlation shows that the independent variable does not affect the dependent variable.

Scatter Diagram with Strong Positive Correlation

scatter-diagram-with-strong-positive-correlation

This diagram is also known as a Scatter Diagram with Positive Slant.

In a positive slant, the correlation is positive, i.e. as the value of X increases, the value of Y will increase. You can say that the slope of a straight line drawn along the data points will go up. The pattern resembles a straight line.

For example, if the weather gets hotter, cold drink sales will go up.

Scatter Diagram with Weak Positive Correlation

scatter-diagram-with-weak-positive-correlation

As the value of X increases, the value of Y also increases, but the pattern does not resemble a straight line.

Scatter Diagram with Strong Negative Correlation

scatter-diagram-with-strong-negative-correlation

This diagram is also known as a Scatter Diagram with a Negative Slant.

In the negative slant, the correlation is negative, i.e. as the value of X increases, the value of Y will decrease. The slope of a straight line drawn along the data points will go down.

For example, if the temperature goes up, sales of winter coats go down.

Scatter Diagram with Weak Negative Correlation

scatter-diagram-with-weak-negative-correlation

As the value of X increases, the value of Y will decrease, but the pattern is not clear.

Scatter Diagram with No Correlation

There isn’t any relationship between the two variables to be seen. It might just be a series of points with no visible trend, or it might be a straight, flat row of points. In either case, the independent variable has no effect on the second variable; it is not dependent.

(b) What do you understand by interpretation of data? Illustrate the types of mistakes which frequently occur in interpretation.

Data interpretation refers to the process of using diverse analytical methods to review data and arrive at relevant conclusions. The interpretation of data helps researchers to categorize, manipulate, and summarize the information in order to answer critical questions.

The importance of data interpretation is evident and this is why it needs to be done properly. Data is very likely to arrive from multiple sources and has a tendency to enter the analysis process with haphazard ordering. Data analysis tends to be extremely subjective. That is to say, the nature and goal of interpretation will vary from business to business, likely correlating to the type of data being analyzed. While there are several different types of processes that are implemented based on individual data nature, the two broadest and most common categories are “quantitative analysis” and “qualitative analysis”.

Yet, before any serious data interpretation inquiry can begin, it should be understood that visual presentations of data findings are irrelevant unless a sound decision is made regarding scales of measurement. Before any serious data analysis can begin, the scale of measurement must be decided for the data as this will have a long-term impact on data interpretation ROI. The varying scales include:

- Nominal Scale: non-numeric categories that cannot be ranked or compared quantitatively. Variables are exclusive and exhaustive.

- Ordinal Scale: exclusive categories that are exclusive and exhaustive but with a logical order. Quality ratings and agreement ratings are examples of ordinal scales (i.e., good, very good, fair, etc., OR agree, strongly agree, disagree, etc.).

- Interval: a measurement scale where data is grouped into categories with orderly and equal distances between the categories. There is always an arbitrary zero point.

- Ratio: contains features of all three.

When performing data analysis, it can be easy to slide into a few traps and end up making mistakes. Diligence is essential, and it’s wise to keep an eye out for the following 7 potential mistakes you can make. These include:

Sampling bias occurs when a non-representative sample is used. For example, a political campaign might sample 1,300 voters only to find out that one political party’s members are dramatically overrepresented in the pool. Sampling bias should be avoided because it can weigh the analysis too far in one particular direction.

Cherry-picking happens when data is stacked to support a particular hypothesis. It’s one of the more intentional problems that appear on this list because there’s always a temptation to give the analysis a nudge in the “right” direction. Not only is cherry-picking unethical, but it may have more serious consequences in fields like public policy, engineering, and health.

Disclosing metrics is a problem because a metric becomes useless once subjects know its value. This ends up creating problems like the habit in the education field of teaching to what’s on standardized tests. A similar problem occurred in the early days of internet search when websites started flooding their content with keywords to game the way pages were ranked.

Overfitting tends to happen during the analysis process. Someone might have a model, for example, and the curve produced by the model seems to be predictive. Unfortunately, the curve is only a curve because the data fits the model. The failure of the model may only become apparent, however, when the model is compared to future observations that aren’t so well-fitted.

Focusing only on the numbers is worrisome because it can have adverse real-world consequences. For example, existing social biases can be fed into models. A company handling lending might produce a model that induces geographic bias by using data derived from biased sources. The numbers may look clean and neat, but the underlying biases can be socially and economically turbulent.

Solution bias can be thought of as the gentler cousin of cherry-picking. With solution bias, a solution might be so cool, interesting or elegant that it’s hard not to fall in love with. Unfortunately, the solution might be wrong, and appropriate levels of scientific and mathematical rigor might not be applied because refuting the solution would just seem disheartening.

Communicating poorly is more problematic than you might expect. Producing analysis is one thing, but conveying findings in an accessible manner to people who didn’t participate in the project is critical. Data scientists need to be comfortable with producing elegant and engaging dashboards, charts and other work products to ensure their findings are well-communicated.

How to Avoid These Problems

Process and diligence are your primary weapons in combating mistakes in data analysis. First, you must have a process in place that emphasizes the importance of getting things right. When you’re creating a data science experiment, there need to be checks in place that will force you to stop and consider things like:

# Where is the data coming from?

# Are there known biases in the data?

# Can you screen the data for problems?

# Who is checking everybody’s work?

# When will results be re-analyzed to verify integrity?

# Are there ethical, social, economic or moral implications that need to be examined more closely before starting?

Diligence is also essential. You should be looking at concerns about whether:

# You have a large and representative enough sample to work with

# There are more rigorous ways to conduct the analysis

# How you’ll make sure analysts are following properly outlined procedures

Tackling a data science project requires sufficient and ample planning. You also have to consider ways to refine your work and to keep improving your processes over time. It takes commitment, but a group with the right culture can do a better job of steering clear of avoidable mistakes.

Question No. 1 - MCO-03 - Research Methodology and Statistical Analysis

Solutions to Assignments

                               MCO-03 - 

    Research Methodology and Statistical Analysis

Question No. 1

What is meant by business research process? What are the various stages / aspects involved in the research process?

Business research is a process of acquiring detailed information of all the areas of business and using such Business research is one of the most effective ways to understand customers, the market and competitors. Such research helps companies to understand the demand and supply of the market. Using such research will help businesses reduce costs, and create solutions or products that are targeted to the demand in the market and the correct audience.

In-house business research can enable senior management to build an effective team or train or mentor when needed. Business research enables the company to track its competitors and hence can give you the upper hand to stay ahead of them. Failures can be avoided by conducting such research as it can give the researcher an idea if the time is right to launch its product/solution and also if the audience is right. It will help understand the brand value and measure customer satisfaction which is essential to continuously innovate and meet customer demands. This will help the company grow its revenue and market share. Business research also helps recruit ideal candidates for various roles in the company. By conducting such research a company can carry out a SWOT analysis, i.e. understand the strengths, weaknesses, opportunities, and threats. With the help of this information, wise decisions can be made to ensure business success.

Business research is the first step that any business owner needs to set up his business, to survive or to excel in the market. The main reason why such research is of utmost importance is that it helps businesses to grow in terms of revenue, market share and brand value. in maximizing the sales and profit of the business. Such a study helps companies determine which product/service is most profitable or in demand. In simple words, it can be stated as the acquisition of information or knowledge for professional or commercial purpose to determine opportunities and goals for a business.

Business research can be done for anything and everything. In general, when people speak about business research it means asking research questions to know where the money can be spent to increase sales, profits or market share. Such research is critical to make wise and informed decisions.

For example: A mobile company wants to launch a new model in the market. But they are not aware of what are the dimensions of a mobile that are in most demand. Hence, the company conducts a business research using various methods to gather information and the same is then evaluated and conclusions are drawn, as to what dimensions are most in-demand, This will enable the researcher to make wise decisions to position his phone at the right price in the market and hence acquire a larger market share.

The five (5) steps in the research process are:

Step 1 – Locating and Defining Issues or Problems

This step focuses on uncovering the nature and boundaries of a situation or question that needs to be answered or studied. In defining the issues or problems, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making.

Step 2 – Designing the Research Project

This step is focused on creating a research plan or overall approach on how you are going to solve the issue or problem identified.  A research plan or approach is a framework or blueprint for conducting a research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making.

The research design involves the following steps:

Step 1: Conduct secondary data analysis

Step 2: Do qualitative research

Step 3: Determine methods of collecting quantitative data (survey, observation, and experimentation)

Step 4: Determine the definition of the information needed

Step 5: Determine measurement and scaling procedures

Step 6: Design questionnaire

Step 7: Sampling process and sample size

Step 8: Plan of data analysis

Step 3 – Collecting Data

This step revolved around obtaining the information that you will need to solve the issue or problem identified.  Data collection can involve experiments, observations, personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through the mail (traditional mail and mail panel surveys with recruited households).

Data collection techniques can include:

- Interviews: Asking people questions about their known information

- Observations: collecting data without asking questions.

- Questionnaires: Ask questions among a group of people

- Focus Groups: Interviewing and observing a group of people

- Documents and Records: old fashion research

Step 4 – Interpreting Research Data

Interpreting research data: This step is focused on examining the data and coming up with a conclusion that solves the problem.

Start by organizing your finding and the information you have collected from Step 3. Then create a rough draft of your finding, recommendations, and conclusion. The rough draft will help you get your thoughts organized. The final step is to polish the draft into your final research finding. You will most likely revise the draft as many times before the final product is ready for Step 5.

Step 5 – Report Research Findings

The final step is to report the research findings to those who need the data to make decisions. The findings should be presented in a comprehensible format so that they can be readily used in the decision-making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact.

Research Reporting Formats:

- Formal Paper

- Published Article

- PowerPoint Presentation

- Audio or Video

- Spreadsheet

MCO-03 - Research Methodology and Statistical Analysis - Mcom 2nd Year

Solutions to Assignments

                               MCO-03 - 

    Research Methodology and Statistical Analysis

                           Mcom - 2nd Year

Question No. 1

What is meant by business research process? What are the various stages / aspects involved in the research process? (20)                             CLICK HERE

Question No. 2 

(a) What do you understand by the term Correlation? Distinguish between different kinds of correlation with the help of scatter diagrams. 

(b) What do you understand by interpretation of data? Illustrate the types of mistakes which frequently occur in interpretation. (10+10)                              CLICK HERE

Question No. 3

Briefly comment on the following: 

(a) The recognition or existence of a problem motivates research. 

(b) Quantitative data has to be condensed in a meaningful manner, so that it can be easily understood and interpreted. 

(c) Decomposition and analysis of a time series is one and the same thing 

(d) Research reports are the product of slow, painstaking and accurate work. (4X5) 

                                                                                 CLICK HERE

Question No. 4 

Write short notes on the following: 

(a) Comparative Scales 

(b) Purpose of a Report 

(c) Binomial Distribution 

(d) Skewness (4X5)                              CLICK HERE

Question No. 5

 Distinguish between the following: 

(a) Primary and Secondary Data 

(b) Estimation and testing of hypothesis 

(c) Sampling and Non-Sampling Errors 

(d) Bibliography and footnote                              CLICK HERE

Question No. 3 - MMPC -002 - Human Resource Management

Solutions to Assignments

                MMPC -002 - Human Resource Management

                            MBA and MBA (Banking & Finance)

Question No. 3 Discuss the concept of ‘career planning’. Explain the process of career planning that you are familiar with, citing suitable organisational examples. 

Career planning is the continuous self-evaluation and planning process done by a person to have a strong career path which is aligned with one's career goals, aspirations and skills. Career planning process in the continuous reiterative process of understanding oneself, setting career goals, revising skills and searching for the right career options.

A person may need to start this planning process from scratch every few years based on the market trends or demand and also on the based of the outcome of the current plan.

Career planning is a step-wise process which enables an individual to focus on where to want to be in life professionally. With the short-term goal and the long-term goals in place, It can help to plan their journey in their professional life. Self-assessment is necessary to understand one’s capabilities and drawbacks. The various career options should be explored in detail to find a fit between one’s abilities and the opportunities provided by a career option. It involves continuous learning and improvement to build and growth in the chosen career path. A good career planning helps a person grow in life in their professional career, which also help them grow personally.

If there is no career planning, then the career of an individual would be controlled by external factors and circumstances. Based on decisions and evaluation done by others, the person would go forward in the career. It may lead to a desirable career path but it can also lead to a job profile which was not at all part of individual's aspiration or career goals.

Choosing a career is unquestionably one of the most important decisions you'll ever make. It impacts just about every facet of your life. It determines how much money you'll make, how much you'll work each week, where you'll live, when you can retire, and quite possibly whether or not you pursue a family. On average, we're at work over 70% of each year, which equates to nearly 35 years over an average life time. Making a good career choice can be the difference between a life filled with satisfaction or a life filled with disatisfaction and disappointment. While you don't need to stress over choosing a career, it isn't a decision to be taken lightly either.

There are those individuals that know from a young age what they wanted to be when they grow up, but they are the exception. Most of us don't know what we want to be when we grow up, even after we've grown up. It's not uncommon for people to choose a career simply because they have too. They put very little effort into choosing an occupation or they choose an occupation for the wrong reason. High pay, prestige, recommendation by a friend, and security are just few wrong reasons people choose careers. Then they end up feeling stuck and unhappy. Proper and thorough career planning is the key to choosing an occupation that will lead to many years of fulfillment and satisfaction.

The career planning process has four components: (1) Self Assessment, (2) Career Exploration, (3) Career Identification, and (4) Action Plan. If you're driven, you can easily go through these steps on your own. You also have the option of working with a career development counselor who will help facilitate the career planning process. Whether you go at it on your own or work with a career development professional, the thought and energy you put into the process will determine how successful you are.

Self Assessment

Trying to find a career without being self aware is like trying to run a race not knowing where the finish line is. How can you know which career path is going to be most satisfying, if you don't even know what you're all about? You can't. That's why self assessment (sometimes referred to as a career assessment) is such an important part of the career planning process. During the self assessment process you'll use tools designed to help you learn more about your interests, values, personality, aptitudes, skill sets, developmental needs, and preferred work environments, so you can make an informed career decision. By the end of the self assessment process you'll have identified various occupations that are good fit for you.

Career Exploration

Based on the results of your self assessment, you should now have a list of occupations that appear to be a good match with your values, interests and skill set. Next, you'll want to narrow this list down to about ten occupations. Go through the list and eliminate those careers that you know you're not interested in. For example, even though you'd make a great police officer, and the career is a good match with your values, interests, and skill set, you know you don't want to work in a job that requires you to carry and shoot a gun. In addition to researching individual occupations, you'll also want to research industries that you'd like to work in. Other very effective ways to explore careers (and which we highly recommend) include conducting informational interviews with industry professionals, job shadowing, job temping, internships, and volunteering.

Career Identification

As it's name suggests, the career identification component the career planning process is when you select just one occupation, among the many you've considered. During this step you'll indentify the occupation that you're most interested in, as well as few alternatives to fall back on if your first choice doesn't pan out. Now that you know which occupation you're going to pursue, you'll want to prepare to enter your chosen field. Identify all the requirements (e.g. education, costs, etc.) for entering your chosen career field.

Create an Action Plan

The final step in the career planning process is to create an action plan. The action plan is designed to help you reach your goals. It's like a road map that takes you from choosing a career to finding your first job all the way to achieving your long-term career goals. In your action plan you should identify your short-term and long- term goals, identify education and training requirements for your career, develop a job search strategy, identify potential employers, create a resume, compose cover letters, and prepare for job interviews.

Many people believe the career planning process is only for recent college grads who are trying to land their first job, but that couldn't be farther from the truth. The career planning process is a useful tool you can apply throughout your career as you redefine yourself and your occupational interests, and as your goals evolve.

Career Planning Example

Let us take an example of an engineer AJ who has recently graduated and is interested in robotics. to start the planning, AJ has to first assess what kind of robotics he is interested in and what is his skill level. After that, he needs to set the objectives with time box approach on how he wants to grow in his robotics career. If there are gaps, he needs to take trainings and courses to reduce the gaps and search for jobs may be in manufacturing and automotive sector where robotics are natural fit.

If successful in securing suitable job, career planning can be more precise based on the hands on experience in the field and then the goals and objective can be defined for new career trajectory.

Question No. 2 - MMPC -002 - Human Resource Management

Solutions to Assignments

                MMPC -002 - Human Resource Management

                        MBA and MBA (Banking & Finance)

Question No. 2 Explain the process of human resource planning. Describe how HR forecast is carried out in the organisation you are working with or an organisation you are familiar with. 

Most entrepreneurs do not go into business to become human resources experts. They go into business because they find a passion and see a need in the market they believe they can fill. Unfortunately, as a business owner, having a human resources infrastructure is critical to the growth and success of the business. The problem is that most owners know little about how to build out a compliant human resources program. That’s where C2 comes in. C2 Essentials offers human resources outsourcing and support to clients, so they can devote more time to building and perfecting the core competencies of their business.

Five Planning Steps Every Organization Should Use

Human Resources is often viewed as a “necessary evil” that gets short shrift because it is not a direct revenue generating component of the business. Nonetheless, human resources is critical to creating productive, happy employees and maintaining a workforce that can execute the company’s core business needs.  One project we often take our new or prospective clients through is a five-step analysis to determine what human resources services their respective companies need and how to scale those services amid planned future growth.

1. Analysis of Organizational Plans and Objectives

When it comes to organizing and streamlining the human resources function, you must first start by doing a complete and thorough analysis of the organization’s plans and objectives. Every organization is going to function differently and have different goals. It is important to understand the ins and outs of the organization before  attempting to make changes to the current human resources infrastructure. Having a professional employer organization (PEO) such as C2 Essentials come in and do a complete audit of everything that is already in place is a great way to offset that burden and can provide an expert-level analysis of how your company’s human resources function should be operating.

2. Preparing a Human Resources Inventory

Completing a full human resources inventory is the next step in the planning process. A complete catalog needs to amassed that contains basic demographic data about each employee, which should include breaking down the employees by education, experience, skills, age, gender, salary, marital status, and any other special training or certifications pertinent to the company’s operations. This initial step may seem tedious but gathering this information about your company’s employees at the outset will help inform everything from payroll to benefits to recruiting.

3. Assessing Future Supply and Demand

Assessing future supply and demand in human resources is also known as “forecasting”. Forecasting is an important step in identifying your market and what changes may potentially be on the horizon. As you win government contracts or secure new clients, you may find yourself in a position that you need to onboard many employees at once. Or you may see a contraction in your market coming down the road and need to plan on how to adjust your human resources function.

4. Matching Supply and Demand

Supply and demand affect the recruitment and staffing process. A strategy for matching supply and demand is to flatten the demand by shifting demand to match existing supply. A different strategy is to adjust the capacity to match fluctuations in demand. This is similar to the “supply and demand” analysis a company goes through in determining how much of their product or service is needed in a given market – the only difference is this is focused on your company’s human resources needs.

5. Establishing an Action Plan

When establishing an action plan, there are many variables that need to be considered. For example, is there currently a human resources deficit or surplus in the organization. Does the company have a current plan for recruiting, hiring, educating, evaluating, compensating, and training employees?  Are the current services sufficient to meet both current and future human resources needs?

Recruiting is a core human resources function that is too often left to happenstance.  When a need arises, a company tries to fill the void.  But without a cogent recruiting plan already in place, finding the right candidate(s) can be difficult.  To create a successful recruitment plan, companies should first inventory the current positions, identify any future needs, determine the experience and education required to fill those roles, and lastly identify any experience or performance gaps within existing departments. For each position that needs to be filled immediately, create a compelling and eye-catching job description (this will not only entice candidates but will help inform how and where the company should look for candidates).

Another important human resources function that often gets overlooked is employee training.  For example, many federal contracts and a growing number of states require ethics and/or sexual harassment training as a regular part of their employment. 

Why do you need to do forecasting?

The most successful businesses utilise human resource forecasting to minimize risk. It’s especially important for growth-oriented businesses to “limit exposure to surpluses or shortages in labour.” Entrepreneurs, owners, and business leaders can use strategic human resource forecasting and planning to better understand workforce needs. As you evaluate labour demand, your workforce may already have skills you can tap into as the business grows or you may find a need to augment or renew technology skills. Your business can meet labour demand from within, or use outside labour supply sources. As you build your HR forecast, it’s important to thoroughly review talent supply and factors impacting the availability of that talent. It’s often more costly to recruit new hires than to upskill or train existing employees to increase productivity.

Some businesses need or want to invest all of their time and energy in growth. That’s why many businesses rely on HR services to help forecast labour demand and supply. HR services can create organization and replacement charts that help identify important roles and functional needs across your business. Supply forecasting includes a review of the current labour market and employment law to ensure your business is both competitive and compliant.

 Human Judgement

Under this method, firstly experienced managers or executives estimate the manpower requirements for their respective departments. This is done on the basis of their knowledge of expected future workload and employee efficiency. At last, the top management then aggregates and approves the departmental estimates. This is a very easy and time-saving method.

But it is quite subjective and is, therefore, suitable only for small firms. With the assistance of work-study, Operations and Management, and human resource experts can refine the estimates based on experience. This method helps in judging the informal group norms on Human Resource Forecasting.

Work-study Method

This method uses time and motion study to analyse and measure work. Such studies help the managers to decide the standard time for per unit work. The following method shows this method:

When it is possible to measure work and set standards, the work-study method is more suitable for repetitive and manual jobs. Job methods should not change frequently.

Ratio- Trends Analysis

This method helps to calculate the ratios on the basis of past data. Firstly, it calculates the future ratios on the basis of the time series analysis/extrapolation, after making allowances for the changes in the organization, method, and jobs, if any.

Extrapolation is a mathematical extension of past data into the future time period. Moving averages and exponential smoothing can help for projections. The company estimates the demand for human resources on the basis of ratios.

Mathematical Models

A mathematical model shows the relationship between independent variables and dependent variables. These models express various factors influencing manpower needs in the form of a formula.

There are several types of models, e.g., regression, optimization models, probabilistic models, etc. These are complex and suitable only for large organizations.