Adverse Impact

Adverse Impact HRM 6622

Adverse Impact Exercise

Symco Manufacturing has been in a rapid growth mode for the past year. The company has worked hard to recruit the number of employees needed to fill organizational vacancies. However, because of the pace of recruitment and hiring, the company has not had an opportunity to look at its hiring data with regard to EEO considerations. Below are the recruitment and hiring statistics for 2010. Using the 4/5 rule as a guide, examine the data and answer the following questions:

(a) From the data (comparing men v. women and minority v. non-minority) is there any “overall” indication of discrimination? If yes, what type of discrimination is occurring? How do you know? Show all calculations.

(b) Examine the entire employment process. Is there potential for discrimination occurring at any stage in the process? If yes, who is being discriminated against and where in the process is discrimination occurring? Show all calculations.

(c) Does the company have any defense it can raise against charges of discrimination? If yes, present an argument on the company’s behalf.

|Employment Stage |Men |Women |Minority |Non-Minority |
|Applications Received |1200 |400 |800 |800 |
|Applicants Interviewed |400 |100 |250 |250 |
|Applicants Tested |200 |50 |50 |200 |
|Job Offers Made |120 |20 |20 |120 |

a. From the data comparing men v. women:

Selection ratio for women: 20/400= 0.05, 5% Selection ratio for men:120/1200=0.1, 10%

5 percent divided by 10 percent equals 50 percent, which is less than 80 percent (4/5ths), so evidence of discrimination is present against women.

From the data comparing minority v. non-minority:

Selection ratio for minority: 20/800=0.025, 2.5% Selection ratio for non-minority: 120/800=0.15, 15%

2.5 percent divided by 15 percent equals 17%, which is less than 80 percent, so evidence of discrimination is present against minorities.

• Based on the data given, it appears that both sexual discrimination and minority discrimination are occurring at the company base on the 4/5ths rule.

b) Men Women Applications Received: Applicants Interviewed: 400/1200= 33% 100/400= 25% Applicants Tested: 200/1200=17% 50/400= 12.5% Job Offers Made: 120/1200=10% 20/400= 5%

Interviews: 25% divided by 33%= 76% Tested: 12.5% divided by 17% = 74% Job Offers: 5% divided by 10%= 50%

Minority Non- Minority

Applications Received: Applicants Interviewed: 250/800=31% 250/800=31%; (31/31)=1% Applicants Tested: 50/800= 6.25 200/800=25%; (6.25/25)=25% Job Offers Made:20/800= 2.5% 120/800=15%; (2.5/15)=17% • After examining the entire employment process, I have found there is potential for discrimination occurring at job offers made towards women which is only 50%, this is much lower than the 80% needed for the 4/5ths rule. Also, minorities are being discriminated against during interviews, testing, and job offers.

C. The company can raise the defense of Bona Fide Occupational Qualification (BFOQ) for the sex discrimination charge. The company can say that for the jobs specified men were a BFOQ. However, neither race or ethnicity can be used as a BFOQ.