Tool 104: Markov Analysis

AKA

N/A

Classification

Analyzing/Trending (AT)

Tool description

A Markov analysis is used to identify employee movement through the various positions within an organizational unit. A matrix displays the percentage of employees who stayed in their position, who were promoted or demoted, or who left the department or company. The analysis results provide valuable information for the forecasting and budgeting of personnel.

Typical application

• To forecast staffing and training requirements.

• To track the movement of personnel through the organization.

• To identify patterns of job changes.

Problem-solving phase

→	Select and define problem or opportunity
→	Identify and analyze causes or potential change
	Develop and plan possible solutions or change
	Implement and evaluate solution or change
→	Measure and report solution or change results
	Recognize and reward team efforts

Typically used by

	Research/statistics
	Creativity/innovation
	Engineering
1	Project management
	Manufacturing
	Marketing/sales
2	Administration/documentation
	Servicing/support
	Customer/quality metrics
3	Change management

links to other tools

before

• Information Needs Analysis

• Data Collection Strategy

• Demographic Analysis

• Task Analysis

• Cluster Analysis

after

• Problem Specification

• Presentation

• Cost-Benefit Analysis

• Resource Requirements Matrix

• Action Plan

Notes and key points

• Typical employee movement

  

Step-by-step procedure

• STEP 1 All personnel movement throughout the department or company is monitored and recorded for specific period of time. See example 1996 Employee Movement—Engineering.

• STEP 2 A Markov analysis matrix is developed for a particular organizational unit, and the previously collected staff-change data is inserted into the matrix cells.

• STEP 3 Percentages are computed, row totals are verified for accuracy, and original budget totals added.

• STEP 4 The finalized matrix is dated and presented to organization's management.

Example of tool application

199x Employee Movement—Engineering