Regression Analysis for Individual Performance
As mentioned earlier, it is assumed that there is a positive linear relationship between critical factors of
employee competencies and individual performance. In order to test the hypotheses, a linear model was
constituted and a regression analysis was performed using “Ordinary Least Squares Estimates” technique. In
the written formulation below, individual performance is dependent variable (Yp), although core
competencies (C), managerial competencies (M), and task competencies (T) are determined as independent
variables respectively. In addition, prior to performing multiple regression analysis, all the assumption of
linear regression was tested and no problem had occurred.
Yp = β0+ β 1C+ β 2M+ β 3T
The next step is assessing the significance of the model using ANOVA (F) test. The significance level
demonstrates the combined effects of all the independent variables in the regression model. As a general rule,
significance level of the model for acceptance should be equal or less than %5 (0.05).
Furthermore, the adjusted R2
(coefficient of multiple determination) was found 0.62 for individual
performance. Almost 62% of individual performance (dependent variable) can be explained by independent
variables (competencies). The remaining 38% is estimated as the influence of personal evaluations,
psychological and sociological influences, other performance indicators, and subjective evaluations which
was not included in the model