Fundamentals of Compensation Quantitative Methods

Example of nominal measurements

You are about to conduct a survey of five benchmark jobs and have numbered them as follows:

POSITION POSITION NUMBER
Secretary 1
Stenographer 4
Clerk 2
Typist 5
CEO 3

Q: What significant mathematical computations can be completed using the position numbers?

A: No significant computations can be completed.

For example: 1 + 2 + 3 + 4 + 5 = 15 means nothing.

Nominal measurements allow only the most limited application. For example, one can count classes (the numbers of positions numbered "2," for instance). Or, "Yes" - "No" can be counted where 0 - 1 correspond to yes and no. However, most Human Resource administrators will find that using nominal measurements in any kind of mathematical operation is bound to lead to error. For instance:

Your Social Security Number:
536-41-3760
+
Your Spouse's Social Security Number:
437-28-5621
TOTAL:
973-69-9381

The number 973-69-9381 is totally meaningless.

Memory Jogger

An example of nominal measurement is:

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