Public Management
Quantitative Method in HRM
Friday, July 28, 2017
Hun Myoung Park, Ph.D.
Public Management & Policy Analysis Program
Graduate School of International Relations
Histogram for Variables
2
Summary Statistics
 Central tendency
 Mean (average)
 Median
 Mode
 Dispersion
 Variance
 Standard deviation
 1st Quantile, 2nd Quantile (Median), 3rd
Quantile
3
Histogram and Box Plot 1
4
Histogram and Box Plot
5
6
7
Public versus Private 1
 Park and Perry (2013)
 Analyze General Social Survey data
 Public employees in government and forprofit organizations are alike in many
respects
 Nonprofit organizations (e.g., welfare,
health, education) are growing and have
employees whose characteristics are
different from government employees.
8
Public versus Private 2
9
Public versus Private 3
10
Public versus Private 4
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Exit, Voice, Loyalty, Neglect 1
• Based on Hirscheman (1970) and Farrell
(1983)
• Classify employees’ status into four
groups and analyze its transition
• Here Markov chain is employed for five
statuses (i.e., loyalty, voice, neglect, exit,
and lay off) even though some
assumptions may be violated.
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Markov Chain Diagram 1
.20
.40
.45
.55
.25
.25
Loyalty
Neglect
Voice
.10
.05
.20
1.0
.10
.15
.10
1.0
.15
Exit
Lay-off
.05
Exit, Voice, Loyalty, Neglect 2
• Loyalty is to stick with the firm before
reacting to the problem
• Voice is any attempt to change rather than
to escape from an objectionable state
• Neglect is to lax, disregardful, and
inattentive behavior (e.g., absenteeism,
lateness, low commitment)
• Exit is to quit or leave the job (turnover)
• Lay-off is kicked out of the organization 14
Exit, Voice, Loyalty, Neglect 3
• Suppose that the average number of
employees in loyalty is 100
• 300 in voice, 600 in neglect
• The cost of loyalty is $0 per employee per
year, $10K for voice, and $50K for neglect
• Ignore the cost of exit (turnover)
• Then what is the total cost that the
organization has to pay?
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Transition Matrix
Q and R matrices
Fundamental Matrix
• Period during which an employee will stay
in non-absorbing state before being
absorbed in one of two absorbing states
Calculating the Total Cost
• Cost of voice: $10M = (1.04*100 +
2.13*300 + .47*600) * 10K
• Cost of neglect: $101M = (1.36*100 +
1.26*300 + 2.50*600) * 50K
• Total cost: $111M = $10M + $101M
Absorption Probability Matrix
• Probabilities that an employee in each
state will exit or being laid off (absorbing
states) eventually.
Impact of New Leadership
• What if a new democratic leadership
change the organization?
• How does transition matrix (employees’
status) look like?
• What are the portion of loyalty, voice, and
neglect?
• What is the total cost that the organization
have to pay?
• Does the new leadership work?
Markov Chain Diagram 2
.25
.60
.05
.50
.20
.25
.05
Loyalty
Neglect
Voice
.30
.30
.10
1.0
.08
.10
.05
1.0
.15
Exit
Lay-off
.02
Calculating the Total Cost
• Cost of voice: $28M = (2.68*100 +
3.84*300 + 2.28*600) * 10K
• Cost of neglect: $56M = (.47*100 +.44*300
+ 1.56*600) * 50K
• Total cost: $84M = $28M + $56M
• Impact of the new leadership: $27M =
$111M - $84M
• Voice is costly but productive!