PERFORMANCE MANAGEMENT

Performance Management

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Performance Management

Three Fundamental Principles of Statistical Thinking

Statistical thinking refers to the learning and action philosophy that is based on three fundamental principles, which are:

All work that take place in a system of unified and interrelated processes, as well as refers to a process of chain activities that facilitates in converting input into output;

Variation that provides boost to uncertainty, already present in entire processes; and

The keys to success is the reduction and understanding in variation

At the operational level, statistical thinking examples may include: documentation and flowcharting of work processes; by using time plots, key measurements can be identified; process improvement and management make use of data and knowledge of variation; and improvement emphasize on the process rather than on blaming staffs (Hoerl & Snee, 2012).

Definition

Parameter

A parameter used to represent a certain characteristic of a population, and is a value that is not known; thus has to be estimated. For instance, a parameter is the population mean that signify the average quantity value. Parameter is denoted by Greek letter “s”

A parameter is a constant value that does not changes in a population. Each population, sample has its own statistic value that is used to estimate its value of parameter. For instance, in s sample, the data mean is used to provide information regarding overall population mean from which the sample is drawn.

Point Estimate

Point estimate refers to a single statistic value of a population parameter. For instance, the point estimate of the µ (population mean) is sample mean (x). In the same way, the point estimate of the population proportion (P) is the sample population (p).

Random Variable

A random variable also known as stochastic variable, and refers to a numerical value of a variable is subject to chance events due to probability. The random variable can be discrete or continuous random variables. In other words, the set of probable outcomes and the distribution of probability that is relate each outcome with the chances is known as random variable.

Standard Error of the Mean

Standard error of the mean (SEM) is the estimated standard deviation from the actual population mean. Standard error of mean is an estimate of how close to the mean of population with the mean of sample is expected to be, and SEM must decrease with larger size of sample, as the population mean estimate improves.

Advantages of Studying a Sample

Studying a sample is much cheaper and less time consuming than studying a census.

An operation magnitude engages in sampling is small, together with the fieldwork execution and results analysis can take place promptly.

Results of sampling are greater effort economy as comparatively small employees is needed to carry out the study and to process and tabulate the data.

Studying a sample facilitates in collecting more information than studying a whole population. In addition, sampling assist in collecting specific type of information which is not possible in census.

Since operations scale engaged in studying a sample is comparatively small such as, sampling ...