Establish a cause and effect relationship between Job performance

with Employee Motivation, Employee Tenure, Employee Leadership,

Employee Salary and Female Employee.
 Initial Equation

• Average Performance= b0 + b1*Motivation + b2*Leadership + b3*

tenure + b4* Salary + b4* Female
Selection of the best model
R-square
Model 1 = .477 = 47.7%
Model 2 = .559 = 55.9%

Model 2 is used as it has higher

r-square

R-square Interpretation
• The independent variables “Leadership” and
“Motivation” are able to describe 55.9% variation in the
dependent variable “ Performance”.
• Rest 44.1% variation is described by other factors not
accounted in the model.
Final Equation

Average Performance = b0 + b1*Motivation + b2*Leadership

Model with Coefficients

Average Performance = 1.797 + (0.384) * Motivation + (+0.449) * Leadership

b0 = 1.797 (Constant)

• Irrespective of all independent variables

• The minimum rating of job performance is 1.797
Coefficient of Motivation = +0.384

• There is a positive correlation between Motivation and Job

Performance
• Keeping everything constant,
• If the motivation rating increases by 1,
• The performance rating increases by 0.384
Coefficient of Leadership = +0.449

• There is a positive correlation between Leadership and Job

Performance
• Keeping everything constant,
• If the leadership rating increases by 1,
• The performance rating increases by 0.449
Coefficient of tenure = 0

• There is no cause and effect relationship with the job performance.

Coefficient of Salary = 0

• There is no cause and effect relationship with the job performance.

Coefficient of Female = 0

• There is no cause and effect relationship with the job performance.

Recommendation
• A leader should not be autocratic. He should rather be democratic.
There should be two way communication between leader and the
employee. There should also not be tight supervision and the
employee should be allowed to work freely using their creative mind
in a motivative environment.