SIX MONTHS INDUSTRIAL TRAINING REPORT

EMPLOYEE PERFORMANCE ANALYSIS

Submitted in partial fulfillment of the

Requirements for the award of

Semester Training

at

MENTORTCA TECHNOLOGY PVT. LTD. ( From January 2024 to June 2024)

Under the Guidance of:

Mr. Amarjeet Singh

Submitted By

Name: AKASH SAHA

University Roll No. 2007481
 Submitted To:

Department of Computer Science & Engineering

SHAHEED BHAGAT SINGH STATE UNIVERSITY, FEROZEPUR, PUNJAB

(INDIA)

TO WHOM IT MAY CONCERN

I hereby certify that Akash Saha Roll No: 2007481 of Shaheed Bhagat Singh State University, Ferozepur
has undergone Semester Software/Industrial Training &Project from January 2024 to June 2024 at Mentortca
Technology Pvt. Ltd. to fulfil the requirements for the award of degree of B.Tech. (CSE). He worked on Employee
Performance analysis project during the training under the supervision of Amarjeet Singh. During his tenure
with us we found him sincere and hardworking. Wishing him a great success in the future.

Signature of the SUPERVISOR(S)

(Seal of Organization)
 Shaheed Bhagat Singh State University, Ferozepur, Punjab

CANDIDATE'S DECLARATION

I hereby certify that the work which is being presented in the report entitled “Semester
Software/Industrial Training & Project” by Akash Saha, University Roll No. 2007481, in partial
fullfillment of requirement for the award of degree of B.Tech submitted in the “Department of CSE” at
“Shaheed Bhagat Singh State University, Ferozepur”, is an authentic record of my own work carried out
during a period from January 2024 to June 2024, under the supervision of Mr. Amarjeet Singh and co-
supervisor Mr. …………. The matter presented in this report has not been submitted in any other
university/Institute for the award of B.Tech Degree.

Signature of the Student

CERTIFICATE
 ABSTRACT

The “Employee Performance Analysis” project presents an advanced employee performance analysis
system designed to predict employee performance and provide actionable recommendations for
improvement. Utilizing a comprehensive employee dataset comprising 1200 rows and 28 features, the
model leverages both quantitative and qualitative data to inform hiring decisions and performance
enhancement strategies. The dataset includes 19 quantitative features (11 numerical and 8 ordinal) and
8 qualitative features, with the employee number excluded due to its irrelevance to performance rating.

The analysis process encompasses univariate, bivariate, and multivariate analyses, along with
correlation studies, to identify critical factors influencing performance. Given the classification nature
of the target variable (ordinal data), various machine learning models, including Support Vector
Classifier, Random Forest Classifier, and Artificial Neural Network (Multilayer Perceptron), were
employed. Among these, the Artificial Neural Network demonstrated the highest accuracy at 95.80%.

Key project goals include identifying significant features impacting performance ratings through
feature importance techniques and optimizing data preprocessing using manual and frequency encoding
methods to convert categorical data into a machine-learning-friendly numerical format. The project
effectively achieves its objectives by integrating robust machine learning models and visualization
techniques, offering valuable insights and recommendations to enhance employee performance and
inform strategic hiring decisions.
 TABLE OF CONTENTS

1. Learning Objective of Internship 1-2

2. Introduction 3

 Aim 4

 Problem Statement 5

 Scope 5-7

 Objective 7-8

3. Problem Description 9

 Key Challenges 10-12

 Goals 12-13

 Approach 13-15

4. Methodology/Technology Used 16-21

5. Flow of Project 22

 UML Diagram 22

 Flow Chart of Project 23-25

6. Future Scope 26-29

7. Conclusion 30-34
 Learning Objectives of Internship

The original objectives of a 6-month internship can vary widely depending on the field,
organization, and specific role, but generally, they include the following key goals:

1. Skill Development:
• Enhance specific technical, analytical, and soft skills relevant to the industry.
• Gain practical experience in applying theoretical knowledge.
2. Professional Experience:
• Understand the day-to-day operations of the industry and the organization.
• Work on real-world projects and tasks to gain hands on experience.
3. Career Exploration:
• Explore different career paths within the field.
• Gain insights into various roles and responsibilities to make informed career
decisions.
4. Networking:
• Build professional relationships with colleagues, mentors and industry
professionals.
• Develop a network that can be beneficial for future career opportunities.
5. Industry Knowledge:
• Learn about current trends, challenges and opportunities in the industry.
• Understand the organizational structure and culture.
6. Professionalism:
• Develop workplace etiquette and professional behaviour.
• Learn to navigate and thrive in a professional environment.
7. Performance Evaluation:
• Receive feedback on work performance and ares for improvement.
• Use evaluations to identify strengths and weaknesses for personal and
professional growth.
8. Contribution to the Organization:
• Contribute to the organization’s goals and projects.
• Bring fresh perspectives and ideas to the team

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 9. Academic Integration:
• Apply academic knowledge in a practical setting.
• Complete any academic requirements associated with the internship, such as
reports or presentations.
10. Personal Growth:
• Improve time management, problem-solving, and decision-making skills.
• Develop greater confidence and self-awareness.

These objectives help ensure that the internship is a mutually beneficial experience for both the
intern and the organization.

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 INTRODUCTION

In today's competitive corporate landscape, understanding and predicting employee

performance is essential for organizational success. This data science project aims to analyze
and predict employee performance ratings using a dataset comprising 1200 rows and 28
columns of quantitative and qualitative features. By leveraging advanced machine learning
techniques, the project identifies key factors influencing performance, provides actionable
insights, and develops a predictive model to enhance hiring and performance management.

The dataset includes numeric, ordinal, and categorical data, offering a detailed view of
employee demographics, job roles, satisfaction levels, and other relevant attributes. The target
variable, performance rating, is ordinal, necessitating a classification approach. Our
methodology includes comprehensive data analysis, exploratory data analysis (EDA), and
rigorous data preprocessing to ensure the accuracy and reliability of the predictive model. We
conduct univariate, bivariate, and multivariate analyses to explore relationships between
features and performance ratings, followed by preprocessing techniques such as handling
missing values, encoding categorical data, outlier treatment, feature transformation, and
scaling.

Feature selection uses correlation analysis and Principal Component Analysis (PCA) to retain
significant features. We employ machine learning algorithms, including Support Vector
Classifier, Random Forest, and Artificial Neural Network (Multilayer Perceptron), to build and
evaluate predictive models. The best-performing model is selected based on accuracy scores.
Additionally, the project offers recommendations to improve employee performance based on
key insights.

By analyzing department-wise performance and highlighting the top three performance drivers,
the project provides a nuanced understanding of employee performance dynamics. Utilizing
tools and libraries such as Jupyter Notebook, Pandas, Numpy, Matplotlib, Seaborn, Scipy,
Sklearn, and Pickle, we ensure robust data analysis and visualization. Ultimately, this project
equips the organization with valuable insights and tools to foster a high-performing workforce,
driving sustained organizational growth and success.

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 Aim

The aim of the project is to

• Utilize Advanced Data Science Techniques:

Apply sophisticated data science methods to analyze a comprehensive dataset,

ensuring a thorough understanding of the data and the relationships between various
features.

• Predict Employee Performance Ratings:

Develop a robust predictive model to accurately forecast employee performance

ratings based on the given dataset, facilitating better decision-making processes.

• Identify Key Performance Influencers:

Determine the most significant factors that influence employee performance,

providing valuable insights into what drives high and low performance within the
organization.

• Enhance Hiring Decisions:

Use the predictive model to inform and improve the recruitment process, ensuring
that new hires are more likely to perform well based on the identified key factors.

• Improve Performance Management:

Provide actionable insights and data-driven recommendations to enhance overall

employee performance management practices.

• Boost Employee Satisfaction and Productivity:

Offer strategic recommendations aimed at increasing employee satisfaction and

productivity, thereby fostering a more engaged and effective workforce.

• Support Organizational Growth:

Utilize the insights and predictive capabilities developed through this project to
support the organization's long-term growth and success, leveraging data-driven
strategies to maintain a competitive edge.

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 Problem Statement

The problem statement of this project is to address the challenge of predicting employee
performance ratings within an organization. Given a dataset containing various
employee attributes, the goal is to:

• Accurately predict the performance ratings of employees using machine

learning models.

• Identify the key factors that significantly influence employee performance.

• Analyze performance trends across different departments to uncover areas

needing improvement.

• Develop actionable insights and recommendations to enhance overall employee

performance and satisfaction.

• Implement a predictive model to assist in making informed hiring and

performance management decisions.

The project aims to provide a data-driven approach to understanding and improving

employee performance, ultimately supporting the organization's strategic goals and
fostering a high-performing workforce.

 Scope

The scope of this project encompasses several key areas aimed at leveraging data science
to enhance employee performance management within an organization. The detailed scope
includes:

1. Data Collection and Preparation:

- Gathering a comprehensive dataset containing 1200 rows and 28 columns of employee-

related features.

- Ensuring the dataset is clean and preprocessed, including handling missing values,
encoding categorical variables, treating outliers, and scaling numerical features.

2. Exploratory Data Analysis (EDA):

- Conducting univariate, bivariate, and multivariate analyses to understand the

distribution and relationships of the features.

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 - Visualizing data using various plots (e.g., histograms, scatter plots, heatmaps) to
identify patterns and correlations.

3. Feature Selection:

- Identifying significant features using correlation analysis and Principal Component

Analysis (PCA).

- Dropping irrelevant or redundant features to enhance model performance and reduce

complexity.

4. Model Development:

- Implementing multiple machine learning algorithms, including Support Vector

Classifier, Random Forest, and Artificial Neural Network (Multilayer Perceptron).

- Training and evaluating these models to predict employee performance ratings, with a
focus on optimizing accuracy and generalization.

5. Model Evaluation and Selection:

- Comparing the performance of different models using metrics such as accuracy,

precision, recall, and F1-score.

- Selecting the best-performing model for deployment, ensuring it meets the accuracy and
reliability requirements.

6. Department-Wise Performance Analysis:

- Analyzing employee performance across different departments to identify strengths and

areas for improvement.

- Generating insights into department-specific trends and issues related to employee

performance.

7. Identification of Key Performance Factors:

- Determining the top three factors that significantly impact employee performance.

- Using feature importance techniques to rank these factors and understand their influence
on performance ratings.

8. Recommendations for Improvement:

- Providing actionable recommendations to enhance employee performance based on the

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 analysis.

- Suggestions may include improving work-life balance, increasing employee

satisfaction, and optimizing job roles and responsibilities.

9. Predictive Model Deployment:

- Deploying the selected predictive model to assist in hiring decisions and ongoing
performance management.

- Ensuring the model is integrated into the organization's decision-making processes

effectively.

10. Documentation and Reporting:

- Documenting the entire project process, including data preparation, analysis, model
development, and evaluation.

- Preparing comprehensive reports and visualizations to communicate findings and

recommendations to stakeholders.

11. Tool and Technology Utilization:

- Using tools such as Jupyter Notebook for development and libraries like Pandas,
Numpy, Matplotlib, Seaborn, Scipy, Sklearn, and Pickle for data manipulation,
visualization, and modeling.

By addressing these areas, the project aims to provide a thorough and actionable approach to
understanding and enhancing employee performance, ultimately supporting the organization's
strategic goals and fostering a high-performing workforce.

 Objective

The objectives of this project are:

1. Predict Employee Performance Ratings: Develop accurate machine learning models to

forecast performance ratings.

2. Identify Key Performance Drivers: Analyze data to pinpoint factors influencing employee
performance.

3. Analyze Department-Wise Performance: Assess performance trends across departments.

4. Enhance Hiring Decisions: Use models to improve recruitment by identifying top-

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performing candidates.

5. Improve Performance Management: Provide data-driven recommendations for enhancing

performance.

6. Support Employee Satisfaction: Offer strategies to increase satisfaction and productivity.

7. Ensure Data Integrity: Implement robust data preprocessing steps.

8. Optimize Model Performance: Select the best-performing model for deployment.

9. Deploy Predictive Model: Integrate the model into performance management processes.

10. Communicate Findings: Prepare concise reports to share insights and recommendations.

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 PROBLEM DESCRIPTION

In today's dynamic business landscape, effectively managing employee performance is critical

for organizations striving to maintain competitiveness and achieve long-term success.
However, this process is often complex, as understanding the myriad factors influencing
employee performance and accurately predicting performance ratings remain significant
challenges. This project aims to address these challenges comprehensively:

One of the primary objectives is to predict employee performance ratings accurately. By

leveraging a diverse dataset containing attributes such as age, education background, job role,
and work experience, the project seeks to develop robust machine learning models capable of
forecasting performance ratings with precision and reliability.

Identifying the key factors that contribute to employee performance is another crucial aspect
of this project. By analyzing the dataset, we aim to understand which variables significantly
influence performance and determine their relative importance. This insight will help
organizations focus their efforts on areas that have the greatest impact on employee
performance.

This project addresses the following problems:

 Performance Prediction:

Predicting employee performance ratings accurately based on various attributes such as

age, education background, job role, and work experience.

 Identifying Key Performance Factors:

Understanding which factors significantly influence employee performance and

determining their relative importance.

 Departmental Performance Analysis:

Analyzing performance trends across different departments to identify areas of

improvement and potential disparities.

 Data-Driven Decision Making:

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 Providing actionable insights and recommendations to enhance performance
management practices and support informed decision-making processes.

 Optimizing Hiring Decisions:

Improving the recruitment process by identifying candidates who are more likely to
perform well based on historical data and key performance factors.

 Enhancing Employee Satisfaction:

Addressing factors such as work-life balance, job satisfaction, and salary hikes to
improve overall employee satisfaction and productivity.

 Ensuring Data Integrity:

Ensuring that the dataset used for analysis is clean, accurate, and properly preprocessed
to avoid biases and errors in model predictions.

 Key Challenges

While undertaking this project, several challenges need to be addressed to ensure its
success:

o Data Quality and Completeness:

Ensuring that the dataset is comprehensive, accurate, and free from

inconsistencies or missing values, which can affect the reliability of the
analysis and model predictions.

o Feature Selection and Engineering:

Identifying the most relevant features that significantly impact employee

performance and engineering new features that capture additional insights
without introducing noise or overfitting.

o Prediction Accuracy:

Developing machine learning models that accurately predict employee

performance ratings while avoiding underfitting or overfitting and ensuring
robustness across different departments and employee profiles.

o Interpretability of Models:

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 Ensuring that the developed models are interpretable and provide actionable
insights that can be easily understood and utilized by stakeholders for decision-
making.

o Departmental Variability:

Accounting for the variability in performance trends across different

departments and ensuring that the predictive models capture department-
specific nuances and challenges.

o Addressing Multicollinearity:

Dealing with multicollinearity among predictor variables, where certain

features may be highly correlated, leading to instability in model coefficients
and interpretation.

o Bias and Fairness:

Mitigating biases in the dataset and ensuring fairness in model predictions to

prevent discrimination based on factors such as gender, race, or age.

o Model Deployment and Integration:

Successfully deploying the predictive model into the organization's existing

systems and workflows, ensuring seamless integration and usability for
decision-makers.

o Continuous Model Monitoring and Updating:

Establishing mechanisms for continuous monitoring of model performance and

updating as needed to ensure that predictions remain accurate over time and
reflect changes in the organization.

o Ethical Considerations:

Ensuring that the project adheres to ethical guidelines and respects employee
privacy while handling sensitive data related to performance ratings and
personal information.

Addressing these challenges requires careful planning, rigorous analysis, and

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 collaboration between data scientists, domain experts, and stakeholders to ensure the
project's success and maximize its impact on organizational performance management.

 Goals

Goals of the Project

The project aims to achieve the following goals:

1. Predict Employee Performance Ratings:

Develop accurate machine learning models to forecast employee performance ratings based
on various attributes and historical data.

2. Identify Key Performance Factors:

Determine the significant factors that influence employee performance and rank them based
on their importance to provide insights for performance improvement.

3. Analyze Department-Wise Performance:

Analyze performance trends across different departments to identify areas of strength and
improvement, providing department-specific insights.

4. Provide Actionable Insights:

Offer actionable recommendations to enhance overall employee performance and

satisfaction, addressing factors such as work-life balance, job satisfaction, and salary hikes.

5. Support Informed Decision Making:

Provide data-driven insights to support informed decision-making processes related to

hiring, performance management, and organizational strategy.

6. Optimize Hiring Decisions:

Improve the recruitment process by identifying candidates who are more likely to perform
well based on historical data and key performance factors.

7. Enhance Employee Satisfaction and Productivity:

Offer strategies to increase employee satisfaction, engagement, and productivity, fostering

a positive work culture.

8. Ensure Data Integrity and Robustness:

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Ensure that the dataset used for analysis is clean, accurate, and properly preprocessed to
ensure reliable model predictions.

9. Deploy Predictive Model:

Deploy the selected predictive model into the organization's decision-making processes to
assist in performance management and hiring decisions.

10. Communicate Findings and Recommendations:

Prepare concise reports and visualizations to effectively communicate analysis results,

model performance, and strategic recommendations to stakeholders.

By achieving these goals, the project aims to provide organizations with valuable insights
and tools to optimize employee performance, foster a positive work environment, and drive
organizational growth and success.

 Approach

The approach of this project involves several structured steps to ensure a comprehensive
analysis and accurate prediction of employee performance ratings. The following stages
outline the methodology used:

1. Data Collection and Understanding:

• Gather the employee dataset, which consists of 1200 rows and 28 columns.

• Understand the features present, including quantitative (numeric and ordinal) and
qualitative (categorical) data.

2. Data Preprocessing:

• Data Cleaning: Ensure the dataset is free from missing values, duplicates, and
inconsistencies.

• Feature Encoding: Convert categorical data into numerical format using manual and
frequency encoding techniques.

• Outlier Handling: Identify and address outliers using methods like Interquartile

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 Range (IQR) to ensure data integrity.

• Feature Transformation: Apply transformations, such as square root transformation,

to handle skewness and improve data distribution.

• Scaling: Standardize numerical features using standard scaling to ensure all features
contribute equally to the model.

3. Exploratory Data Analysis (EDA):

• Perform univariate, bivariate, and multivariate analyses to explore the relationships

between features and the target variable.

• Use visualization tools like histograms, line plots, count plots, bar plots, and
heatmaps to gain insights and identify patterns.

4. Feature Selection:

• Drop irrelevant or constant features, such as employee number.

• Use correlation analysis and Principal Component Analysis (PCA) to select the
most important features while reducing dimensionality.

5. Model Building and Evaluation:

• Model Selection: Experiment with multiple machine learning algorithms, including

Support Vector Classifier, Random Forest Classifier, and Artificial Neural Network
(Multilayer Perceptron).Data Splitting: Divide the dataset into training and testing
sets (80% training, 20% testing).

• Model Training: Train the models using the training data.

• Model Evaluation: Evaluate model performance using metrics such as accuracy,

precision, recall, and F1 score. Use techniques like cross-validation to ensure
robustness.

• Hyperparameter Tuning: Optimize model parameters to improve performance and

avoid overfitting.

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 6. Feature Importance Analysis:

• Identify the top factors affecting employee performance using feature importance
techniques.

• Provide insights on the relative importance of each feature in predicting

performance ratings.

7. Model Deployment:

• Select the best-performing model (Artificial Neural Network with 95.80%

accuracy) for deployment.

• Save the trained model using tools like Pickle for future use and integration into
organizational processes.

8. Recommendations and Reporting:

• Develop actionable recommendations to improve employee performance based on

analysis insights.

• Prepare detailed reports and visualizations to communicate findings and

recommendations to stakeholders.

9. Continuous Monitoring and Updating:

• Establish mechanisms for continuous monitoring of model performance and update

the model as needed to reflect changes in the organization.

By following this structured approach, the project aims to deliver a comprehensive solution for
predicting employee performance, identifying key performance drivers, and providing
actionable recommendations to enhance organizational performance and employee
satisfaction.

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 Methodology/Technology Used

1.Analysis:
Data were analyzed by describing the features present in the data. The features play the
bigger part in the analysis. The features tell the relation between the dependent and
independent variables. Pandas also help to describe the datasets answering following
questions early in our project. The data present in the dataset are divided into numerical
and categorical data.

Categorical Features
 EmpNumber
 Gender
 EducationBackground
 MaritalStatus
 EmpDepartment
 EmpJobRole
 BusinessTravelFrequency
 OverTime
 Attrition

Numerical Features

 Age

 DistanceFromHome

 EmpHourlyRate

 NumCompaniesWorked

 EmpLastSalaryHikePercent

 TotalWorkExperienceInYears

 TrainingTimesLastYear

 ExperienceYearsAtThisCompany

 ExperienceYearsInCurrentRole

 YearsSinceLastPromotion

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 YearsWithCurrManager

Ordinal Features

 EmpEducationLevel

 EmpEnvironmentSatisfaction

 EmpJobInvolvement

 EmpJobLevel

 EmpJobSatisfaction

 EmpRelationshipSatisfaction

 EmpWorkLifeBalance

 PerformanceRating

2. Univariate, Bivariate & Multivariate Analysis

Library Used: Matplotlib & Seaborn

Plots Used: Histplot, Lineplot, CountPlot, Barplot

Univariate Analysis: In univariate analysis we get the unique labels of categorical

features, as well as get the range & density of numbers

Bivariate Analysis: In bivariate analysis we check the feature relationship with target
variable.

Multivariate Analysis: In multivariate Analysis check the relationship between two

variables with respect to the target variable.

CONCLUSION:

There are some features are positively correlated with performance rating(Target
variable) [Emp Environment Satisfaction,Emp Last Salary Hike Percent,Emp Work Life
Balance]

3. Explotary Data Analysis:

Basic Check & Statistical Measures

There is no constant column is present in Numerical as well as 17ategorical data.

Distribution of Continuous Features:

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In general, one of the first few steps in exploring the data would be to have a rough idea
of how the features are distributed with one another. To do so, we shall invoke the
familiar distort function from the Seaborn plotting library. The distribution has been done
by both numerical features. It will show the overall idea about the density and majority of
data present in a different level. The age distribution is starting from 18 to 60 where most
of the employees are laying between 30 to 40 age countEmployees work in multiple
companies up to 8 companies where most of the employees worked up to 2 companies
before getting to work here.
The hourly rate range is 65 to 95 for the majority of employees work in this company.
In General, Most of Employees work up to 5 years in this company. Most of the
employees get 11% to 15% of salary hike in this company.
Check Skewness and Kurtosis of Numerical Features:
YearsSinceLastPromotion, this column is skewed:
1. skewness for YearsSinceLastPromotion: 1.9724620367914252
2. kurtosis for YearsSinceLastPromotion: 3.5193552691799805
Distribution of Mean of Data
1. Distribution of mean close to gaussian distribution with mean value 9.5
2. we can say that around 80% feature mean lies between 8.5 to 10.5

Distribution of Standard Deviation of Data

1. Distribution of standard deviation of data also look like gaussian distribution around
30% of feature standard deviation around the range of 3 3 to 20 and remaining 70%
feature standard deviation in between 0 to 2

4. Data Pre-Processing:

1. Check Missing Value: There is no missing value in data

2. Categorical Data Conversion: Handel categorical data with the help of frequency and
manual encoding, because feature is contain lots of labels
3. Manual Encoding: Manual encoding is a best technique to handle categorical feature
with the help of map function, map the labels based on frequency.
4. Frequency Encoding: Frequency encoding is an encoding technique to transform an
original categorical variable to a numerical variable by considering the frequency
distribution of the data getting value counts.

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5. Outlier Handling Some features are containing outliers so we are impute this outlier
with the help of IQR because in all features data is not normally distributed.
6. Feature Transformation: In YearsSinceLastPromotion some skewed & kurtosis is
present, so we are using Square Root Transformation technique.
7. quare root transformation: Square root transformation is one of the many types of
standard transformations.This transformation is used for count data (data that follow a
Poisson distribution) or small whole numbers. Each data point is replaced by its
square root. Negative data is converted to positive by adding a constant, and then
transformed.
8. Q-Q Plot: Q–Q plot is a probability plot, a graphical method for comparing two
probability distributions by plotting their quantiles against each other.
9. Scaling The Data: scaling the data with the help of Standard scalar.
10. standard Scaling: Standardization is the process of scaling the feature, it assumes the
feature follow normal distribution and scale the feature between mean and standard
deviation, here mean is 0 and standard deviation is always 1.

5.Feature Selection:

1. Drop unique and constant feature: Dropping employee number because this is a
constant column as well as drop Years Since Last Promotion because we create
a new feature using square root transformation
2. Checking Correlation: Checking correlation with the help of heat map and get
the there is no highly correlated feature is present.
3. Check Duplicates: In this data There is no duplicates is present.
4. 4. PCA: Use pca to reduce the dimension of data, Data is contained total 27
feature after dropping unique and constant column, from PCA it shows the 25
features has less variance loss, so we are going to select 25 feature.
Principal component analysis (PCA) is a popular technique for analysing large
datasets containing a high number of dimensions/features per observation,
increasing the interpretability of data while preserving the maximum amount of
information, and enabling the visualization of multidimensional data. Formally,
PCA is a statistical technique for reducing the dimensionality of a dataset.

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5. Saving Pre-Process Data: save the all-preprocess data in new file and add target
feature to it.

6.Machine learning Model Creation & Evaluation:

1. Define Dependant and Independant Features

2. Balancing the data: The data is imbalance, so we need to balance the data with
the help of SMOTE.
3. SMOTE: SMOTE (synthetic minority oversampling technique) is one of the most
used oversampling methods to solve the imbalance problem. It aims to balance
class distribution by randomly increasing minority class examples by replicating
them. SMOTE synthesises new minority instances between existing minority
instances.
4. Splitting Training and Testing Data: 80% data use for training & 20% data used for
testing

7.Algorithm:

AIM: Create a sweet spot model (Low bias, Low variance)

1. Support Vector Machine

2. Random Forest
3. Artificial Neural Network [MLP Classifier]
Support vector machine well perform on training data with accuracy 96.61% but the test
score is 94.66 after applying Hyperparameter tunning score is 98.28 means model is
overfit.
* Random forest very well performs in training data with 100% accuracy but in testing
95.61% after doing hyperparameter tunning testing score is decreases.
* Artificial neural network [Multilayer perception] performs very well on training data
with 98.95% accuracy and testing score is 95.80%.
So, we are select Artificial neural network [Multilayer perception] model.

8. Saving Model
Save model with the help of pickle file

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Tools and Library Used:

Tools:

Jupyter

Library Used:

1. Pandas
2. Numpy
3. Matplotlib
4. Seaborn
5. pylab
6. Scipy
7. Sklearn
8. Pickle

Q-Q plot
FINDING OUTLIERS

REMOVED OUTLIERS

TRAING AND TESTING MODELS

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 Flow of Project

 UML Diagram:

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 Flow Chart of Project:

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Here’s a step-by-step explanation of the diagram:

1. Start: This marks the beginning of the process.

2. Data Collection: The initial step involves collecting raw employee performance data.

3. Data Preprocessing:
• Load raw data: The collected raw data is loaded into the system.
• Clean data: The data is cleaned to handle missing values, outliers, and
inconsistencies.
• Feature engineering: New features are created, and categorical variables are
encoded.
• Save preprocessed data: The cleaned and processed data is saved for further
analysis.

4. Exploratory Data Analysis (EDA):

• Load preprocessed data: The preprocessed data is loaded.
• Descriptive statistics: Basic statistical analysis is performed to understand the
data.
• Data visualizations: Various visualizations are created to explore data
distributions, correlations, and patterns.
• Identify trends and patterns: Key trends and patterns in the data are identified.

5. Model Building:
• Split data (training/testing): The data is split into training and testing sets.
• Select algorithms: Appropriate machine learning algorithms are chosen.
• Train models: The selected models are trained on the training data.
• Evaluate performance: The performance of the models is evaluated using the
testing data.
• Hyperparameter tuning: Hyperparameters of the models are fine-tuned to
improve performance.

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 • Select best model: The best performing model is selected for deployment.

6. Model Deployment:
• Prepare model for deployment: The selected model is prepared for deployment.
• Develop API/integrate model: An API is developed, or the model is integrated
into an application for use.

7. Reporting and Documentation:

• Document findings: The methodologies and findings are documented.
• Prepare visualizations/reports: Visualizations and reports are prepared to
present the findings.

8. End: This marks the end of the process.

The diagram illustrates the sequential flow of activities, with each step dependent on the
completion of the previous steps, ensuring a structured approach to the project.

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 Future Scope

The future scope of this project extends far beyond its initial objectives, promising exciting
opportunities for both theoretical and practical advancements. Building upon the objectives achieved,
the skills learned, and the experiences gained during the internship, the project paves the way for further
exploration and innovation in predicting employee performance and enhancing organizational
efficiency.

 Achieving Objectives

The project’s primary objectives—accurately predicting employee performance ratings and identifying
key factors influencing performance—were successfully accomplished. This success was attributed to
meticulous data analysis, the application of sophisticated machine learning models, and thorough
validation processes. Specifically, the Artificial Neural Network (Multilayer Perceptron) demonstrated
superior accuracy, making it a reliable tool for Human Resources (HR) departments. The future scope
involves refining these models by incorporating more diverse datasets, exploring additional features,
and experimenting with advanced algorithms to further improve prediction accuracy and robustness.

Future efforts can focus on:

 Model Enhancement:
Continuous improvement of the existing models by incorporating more data and
experimenting with cutting-edge algorithms such as deep learning and ensemble
methods.
 Predictive Accuracy:
Regularly updating the model with new data to maintain high predictive accuracy and
relevance.
 Feature Expansion:
Integrating additional variables like market trends, economic indicators, and employee
feedback to enrich the model’s predictive capabilities.

 Skills Learned

Throughout the internship, a multitude of scientific and professional skills were acquired, which can be
instrumental in future projects:

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  Data Analysis and Visualization:
Mastery of Python libraries such as Pandas, NumPy, Matplotlib, and Seaborn for
efficient data manipulation and visualization.
 Machine Learning Proficiency:
Hands-on experience with machine learning algorithms, including Support Vector
Classifier, Random Forest, and Artificial Neural Networks, and their application to real-
world problems.
 Data Preprocessing Expertise:
Skills in addressing missing values, outlier detection, feature encoding, and data
scaling.
 Model Evaluation and Optimization:
Competence in evaluating model performance using metrics like accuracy, precision,
recall, and F1 score, and optimizing models through hyperparameter tuning.
 Feature Selection and Dimensionality Reduction:
Knowledge of techniques like correlation analysis and Principal Component Analysis
(PCA) for effective feature selection and dimensionality reduction.

These skills establish a robust foundation for tackling more complex data science challenges and
developing sophisticated predictive models in future projects.

 Results and Observations

The project yielded several valuable insights and practical experiences:

Key Factors Identification:
Identifying the most influential factors affecting employee performance provided actionable insights
for enhancing HR practices and decision-making processes.

 Model Performance:
The high accuracy of the Artificial Neural Network validated the chosen approach and
methodology, confirming the model’s reliability and effectiveness.
 Data Quality Importance:
The project highlighted the critical role of high-quality data, as clean and well-
preprocessed data significantly improved model performance.

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These observations underscore the importance of thorough data analysis and preprocessing in achieving
accurate and reliable results, and they can guide future projects toward similar success.

 Challenges Experienced

The internship presented several challenges that offered valuable learning opportunities:
 Data Quality Issues:
Addressing missing values, outliers, and inconsistencies required meticulous
preprocessing and careful consideration of various techniques to ensure data integrity.
 Model Overfitting:
Some models, such as the Support Vector Classifier, initially exhibited overfitting,
necessitating the use of techniques like cross-validation and hyperparameter tuning to
achieve a balance between bias and variance.
 Feature Engineering:
Identifying and transforming relevant features was challenging but essential for
improving model performance and predictive accuracy.

Overcoming these challenges enhanced problem-solving skills and provided deeper insights into the
complexities of data science projects, laying the groundwork for future endeavors.

 Future Directions

Building on the achievements and experiences from this project, several promising future directions can
be pursued:
 Integration with Real-Time Data:
Implementing real-time data integration to continuously update and improve the model,
making it more responsive to current trends and changes in employee performance
dynamics.
 Advanced Machine Learning Techniques:
Exploring advanced machine learning techniques, such as deep learning, reinforcement
learning, and ensemble methods, to further enhance the model’s predictive accuracy
and robustness.

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  Expanded Feature Set:
Incorporating additional features such as employee feedback, external market trends,
and economic indicators to provide a more comprehensive analysis of factors affecting
employee performance.
 User-Friendly Interface:
Developing an interactive dashboard or application that allows HR professionals to
easily input data, receive predictions, and gain actionable insights from the model.
 Cross-Industry Application:
Adapting the model for use in different industries and organizational contexts to
broaden its applicability and impact, demonstrating its versatility and scalability.
 Longitudinal Analysis:
Conducting longitudinal studies to track employee performance over time, allowing for
the refinement of predictive models based on temporal trends and patterns.
 Scalability and Deployment:
Enhancing the model’s scalability and ease of deployment in various organizational
settings, ensuring it can handle large-scale data efficiently and effectively.
 Employee Engagement and Retention:
Utilizing insights from the model to develop strategies aimed at improving employee
engagement and retention, thereby fostering a more productive and satisfied workforce.

 Collaborative Projects:
Engaging in collaborative projects with other organizations and research institutions to
validate and extend the model’s applicability and reliability in different contexts.
 Ethical Considerations:
Ensuring ethical considerations are integrated into the model’s development and
application, addressing issues such as data privacy, bias mitigation, and fairness in
predictions.

By pursuing these future directions, the project can evolve into a more robust and versatile tool,
providing even greater value to organizations seeking to optimize employee performance and overall
productivity. The skills and experiences gained during the internship will be instrumental in driving
these advancements and achieving continued success in data science endeavors.

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 Conclusion
The project aimed to predict employee performance ratings and identify key factors influencing
performance using advanced data science methodologies. Through rigorous data analysis,
preprocessing, and the application of sophisticated machine learning models, we successfully
achieved our primary objectives. The key insights and model predictions offer valuable tools
for HR departments to make informed decisions about employee performance management
and improvement.

 Summary of Achievements

1. Predictive Model Development:

 Developed and validated several machine learning models, including Support Vector
Classifier, Random Forest, and Artificial Neural Network (Multilayer Perceptron).
Among these, the Artificial Neural Network achieved the highest accuracy of 95.80%,
demonstrating its robustness and reliability in predicting employee performance.
 Employed feature engineering and selection techniques to enhance the models'
accuracy, such as manual and frequency encoding methods for categorical data and the
application of Principal Component Analysis (PCA) for dimensionality reduction.

2. Key Factors Identification:

 Successfully identified the top three factors influencing employee performance:
Employee Environment Satisfaction, Employee Salary Hike Percentage, and
Experience Years in Current Role. These factors provide actionable insights that HR
departments can leverage to enhance employee performance and satisfaction.
 Conducted detailed correlation analyses to understand the relationships between
various features and performance ratings, leading to a more nuanced understanding of
the drivers of employee performance.

3. Data Analysis and Visualization:

 Conducted comprehensive univariate, bivariate, and multivariate analyses to uncover
patterns and relationships within the dataset. These analyses were instrumental in
understanding the distribution and interactions of features.
 Utilized various visualization techniques, including histograms, line plots, count plots,
bar plots, and heatmaps, to present data insights clearly and effectively. These

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 visualizations helped in communicating complex data patterns in an easily interpretable
manner.

4. Professional Skill Development:

 Enhanced skills in data manipulation, machine learning, model evaluation, and data
visualization using tools such as Python, Pandas, NumPy, Matplotlib, Seaborn, and
Scikit-learn. These skills are essential for any data science professional and were critical
in the successful execution of this project.
 Gained practical experience in handling real-world data challenges, such as dealing
with missing values, outliers, and the encoding of categorical features. These
experiences provided valuable lessons in data preprocessing and the importance of
clean, high-quality data.

 Key Challenges Overcome

The project encountered several challenges that were effectively addressed, enhancing both the
quality of the outcomes and the learning experience:
1. Data Quality Issues:
 Addressed missing values, outliers, and inconsistencies through meticulous
preprocessing. Techniques such as Interquartile Range (IQR) for outlier detection and
manual encoding for categorical features ensured data integrity.
 Overcame challenges related to the high dimensionality of the dataset by employing
PCA, which helped in reducing the feature set without significant loss of information.

2. Model Overfitting:
 Tackled overfitting issues in models like the Support Vector Classifier by implementing
techniques such as cross-validation and hyperparameter tuning. These strategies helped
achieve a balance between bias and variance, leading to more generalizable models.
 Ensured the robustness of the final models by testing them on separate validation sets,
thereby verifying their performance on unseen data.

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3. Feature Engineering:
 Successfully identified and transformed relevant features to improve model
performance. This involved creating new features through transformations like the
square root transformation for skewed data and encoding categorical variables
effectively.
 Developed an understanding of the impact of different features on the target variable,
which was crucial in refining the predictive models.

 Future Directions

Building on the achievements of this project, several promising future directions can be
pursued:
1. Real-Time Data Integration:
Implementing real-time data integration to continuously update and improve the model,
making it more responsive to current trends and changes in employee performance dynamics.
This would involve setting up pipelines to regularly feed new data into the model and retrain it
as necessary.
2. Advanced Algorithms:
Exploring more advanced machine learning techniques, such as deep learning, reinforcement
learning, and ensemble methods, to further enhance the model’s predictive accuracy and
robustness. These techniques could potentially uncover more complex patterns and interactions
within the data.
3. Feature Expansion:
Incorporating additional features, such as employee feedback, external market trends, and
economic indicators, to provide a more comprehensive analysis of factors affecting employee
performance. This would enhance the model’s ability to capture the broader context in which
employee performance occurs.
4. User-Friendly Tools:
Developing interactive dashboards or applications that allow HR professionals to easily input
data, receive predictions, and gain actionable insights from the model. This would involve
creating user-friendly interfaces and integrating the predictive models into HR management
systems.
5. Cross-Industry Applications:
Adapting the model for use in different industries and organizational contexts to broaden its

32
applicability and impact. Demonstrating its versatility and scalability across various sectors
would establish its utility as a general tool for performance prediction.
6. Longitudinal Studies:
Conducting longitudinal studies to track employee performance over time, allowing for the
refinement of predictive models based on temporal trends and patterns. This approach would
provide deeper insights into the long-term factors influencing employee performance.
7. Scalability and Deployment:
Enhancing the model’s scalability and ease of deployment in various organizational settings,
ensuring it can handle large-scale data efficiently and effectively. This would involve
optimizing the model for performance and reliability in different environments.
8. Employee Engagement and Retention:
Utilizing insights from the model to develop strategies aimed at improving employee
engagement and retention, thereby fostering a more productive and satisfied workforce. This
would involve identifying key drivers of engagement and implementing targeted interventions.
9. Collaborative Projects:
Engaging in collaborative projects with other organizations and research institutions to validate
and extend the model’s applicability and reliability in different contexts. Collaborative efforts
could lead to the development of more comprehensive and universally applicable models.
10. Ethical Considerations:
Ensuring ethical considerations are integrated into the model’s development and application,
addressing issues such as data privacy, bias mitigation, and fairness in predictions. This would
involve implementing measures to protect employee data and ensuring the model’s predictions
are equitable.

 Final Thoughts

The project’s success in predicting employee performance ratings and identifying critical
performance factors demonstrates the potential of data science in enhancing organizational
decision-making processes. The insights and tools developed through this project can
significantly contribute to optimizing employee performance and overall productivity. The
skills and knowledge gained during the project provide a strong foundation for future data
science endeavors, promising continued innovation and improvement in this field.

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By leveraging the experiences and insights gained, this project sets the stage for further
advancements in predictive modeling and human resource management. The future scope of
the project is vast, offering numerous opportunities to refine and expand upon the initial
achievements, ultimately leading to more effective and efficient management practices in
organizations worldwide.

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