Introduction/Context Assume you are a manager at ACME Co. and you have three employees. ACME Co. holds performance reviews every 6 months (semi-annually). You have to decide how well your employees are doing. Because ACME Co is a systematic place, your boss will want to see some data to back up your views To help you assess your employees, ACME Co provides you with a report of monthly productivity figures (units of production) for each of your reports. Employee 1 Employee 2 Employee 3 Date Units Per Month Units Per Month Units Per Month Jan-13 45.68 10.89 0.00 Feb-13 46.13 13.70 10.02 Mar-13 40.25 14.84 14.85 38.34 18.17 20.88 Apr-13 May-13 38.55 19.43 22.09 Jun-13 38.49 19.02 27.53 Jul-13 40.53 20.99 28.32 Aug-13 LLLLLLLLLLLL 40.92 24.95 30.96 Sep-13 48.39 26.87 32.52 Oct-13 45.50 29.03 32.57 |||||||||||||||| Nov-13 44.61 19.97 34.92 Dec-13 50.10 34.32 36.61 Jan-14 59.40 34.80 36.37 Feb-14 48.15 33.61 38.59 Mar-14 37.57 39.30 40.37 55.98 39.11 41.14 Apr-14 May-14 62.98 44.00 42.38 Jun-14 60.26 45.69 42.52 Jul-14 62.55 42.63 45.14 Aug-14 62.88 45.12 47.17 Sep-14 55.29 51.74 44.70 Oct-14 52.74 49.50 44.88 Nov-14 52.83 42.32 45.43 Dec-14 52.60 58.52 48.61 Jan-15 54.97 49.53 46.50 Feb-15 55.30 54.75 49.77 Mar-15 64.27 59.58 49.57 Apr-15 60.59 63.76 48.82 May-15 59.35 67.97 51.40 Jun-15 65.84 65.45 50.33 Jul-15 76.87 70.64 51.94 63.19 70.27 51.95 Aug-15 Sep-15 50.41 70.08 51.12 Oct-15 72.25 75.05 55.84 Nov-15 80.42 75.36 54.61 Dec-15 77.02 76.98 54.77 Jan-16 79.56 68.91 56.01 Feb-16 79.79 83.84 56.98 Mar-16 70.72 84.31 55.17 Apr-16 67.61 67.09 62.55 May-16 67.60 77.39 59.05 Jun-16 67.23 77.42 60.54 Jul-16 69.87 80.93 62.41 70.15 80.93 60.33 Aug-16 Sep-16 80.42 73.35 61.93 Oct-16 76.04 74.46 60.23 Nov-16 77.07 75.05 60.00 Dec-16 78.20 74.80 62.65 Question 1 Calculate the productivity growth you would use to compensate employees for the most recent review period. Perform the calculation for each of the three employees, explain your calculation and why you chose the method you did. Keep in mind that this is for employee bonuses (not salaries). Question 2 When looking at the percent change between review periods for each employee, is it important to use the monthly average of 6-month productivity instead of the sum of 6-month productivity? Why or why not? Introduction/Context Assume you are a manager at ACME Co. and you have three employees. ACME Co. holds performance reviews every 6 months (semi-annually). You have to decide how well your employees are doing. Because ACME Co is a systematic place, your boss will want to see some data to back up your views To help you assess your employees, ACME Co provides you with a report of monthly productivity figures (units of production) for each of your reports. Employee 1 Employee 2 Employee 3 Date Units Per Month Units Per Month Units Per Month Jan-13 45.68 10.89 0.00 Feb-13 46.13 13.70 10.02 Mar-13 40.25 14.84 14.85 38.34 18.17 20.88 Apr-13 May-13 38.55 19.43 22.09 Jun-13 38.49 19.02 27.53 Jul-13 40.53 20.99 28.32 Aug-13 LLLLLLLLLLLL 40.92 24.95 30.96 Sep-13 48.39 26.87 32.52 Oct-13 45.50 29.03 32.57 |||||||||||||||| Nov-13 44.61 19.97 34.92 Dec-13 50.10 34.32 36.61 Jan-14 59.40 34.80 36.37 Feb-14 48.15 33.61 38.59 Mar-14 37.57 39.30 40.37 55.98 39.11 41.14 Apr-14 May-14 62.98 44.00 42.38 Jun-14 60.26 45.69 42.52 Jul-14 62.55 42.63 45.14 Aug-14 62.88 45.12 47.17 Sep-14 55.29 51.74 44.70 Oct-14 52.74 49.50 44.88 Nov-14 52.83 42.32 45.43 Dec-14 52.60 58.52 48.61 Jan-15 54.97 49.53 46.50 Feb-15 55.30 54.75 49.77 Mar-15 64.27 59.58 49.57 Apr-15 60.59 63.76 48.82 May-15 59.35 67.97 51.40 Jun-15 65.84 65.45 50.33 Jul-15 76.87 70.64 51.94 63.19 70.27 51.95 Aug-15 Sep-15 50.41 70.08 51.12 Oct-15 72.25 75.05 55.84 Nov-15 80.42 75.36 54.61 Dec-15 77.02 76.98 54.77 Jan-16 79.56 68.91 56.01 Feb-16 79.79 83.84 56.98 Mar-16 70.72 84.31 55.17 Apr-16 67.61 67.09 62.55 May-16 67.60 77.39 59.05 Jun-16 67.23 77.42 60.54 Jul-16 69.87 80.93 62.41 70.15 80.93 60.33 Aug-16 Sep-16 80.42 73.35 61.93 Oct-16 76.04 74.46 60.23 Nov-16 77.07 75.05 60.00 Dec-16 78.20 74.80 62.65 Question 1 Calculate the productivity growth you would use to compensate employees for the most recent review period. Perform the calculation for each of the three employees, explain your calculation and why you chose the method you did. Keep in mind that this is for employee bonuses (not salaries). Question 2 When looking at the percent change between review periods for each employee, is it important to use the monthly average of 6-month productivity instead of the sum of 6-month productivity? Why or why not