What does 'central tendency' typically measure?

Central tendency is a statistical term that refers to measures that summarize a set of data by identifying the central point within that set of data. This includes calculations like the mean (average), median, and mode. These measures are used to provide a single value that represents the entire dataset, allowing for better understanding and analysis of that data.

In the context of this question, recognizing typical values in a data set is essential because it helps organizations understand the overall trends and patterns within their data, which can inform compensation strategies, performance evaluations, and other HR-related decisions. By focusing on central tendency, HR professionals can distill complex data into insights that are easier to interpret and act upon, making it a fundamental concept in managing workforce metrics.