Decision Scenario

Two senior managers (A and B) are evaluating 15 employees for a new role. A rank of one is assigned to the most suitable employee and so on.

The rankings are as below:

Mgr_A_Ranks: 13, 3, 2, 7, 9, 6, 8, 14, 5, 1, 11, 12, 4, 15, 10

Mgr_B_Ranks: 14, 2, 1, 5, 9, 8, 7, 12, 4, 3, 10, 13, 6, 15, 11

The HR Manager needs to know:

Solution Aproach

The Spearman’s Rank Correlation \(\rho\) indicates the correlation between two ranked variables (rank of employees by manager A and rank of employees by manager B).

\(\rho = 1-\frac{6\sum{d^2}}{n(n^2-1)}\) where d is the difference between the ranks being compared.

# Load the ranking of managers A and B

mgr_a_ranks <- c(13, 3, 2, 7, 9, 6, 8, 14,
5, 1, 11, 12, 4, 15, 10)
mgr_b_ranks <- c(14, 2, 1,5,9,8,7,12,4,3,10,13,6,15,11)
corr_res <- cor.test(mgr_a_ranks, mgr_b_ranks, method = 'spearman')

# S denotes the Sum of Square of differences between the rankings 

# Correlation Results
corr_res
## 
##  Spearman's rank correlation rho
## 
## data:  mgr_a_ranks and mgr_b_ranks
## S = 28, p-value < 2.2e-16
## alternative hypothesis: true rho is not equal to 0
## sample estimates:
##  rho 
## 0.95

Reference: Spearkman Coefficient in R https://www.statology.org/spearman-correlation-in-r/