Adverse Impact Exercise -Assignment.

Adverse Impact Exercise -Assignment.

Symco Industries 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. Adverse Impact Exercise -Assignment.A sequential, non-compensatory hiring approach is employed. That is, candidates must “pass” each stage to be hired.  Below are the recruitment and hiring statistics for 2016 for the engineering job family.  Using the 4/5 rule as a guide, examine the data and answer the following questions:

(a) From the data presented below, is there any “overall” indication of discrimination?  If yes, what type of discrimination is occurring?  How do you know?  Show all calculations.
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Adverse or disparate impact is present when certain groups are hired or chosen at a different rate than others. These groups can be differentiated between gender and/or race. In the scenario with Symco Industries, evidence indicates the company did indeed practice discrimination when hiring employees in 2016. Data shows that the standard rate of jobs offered was 48%. Statistics furthers show that 60% of men were offered jobs in comparison to 40% of offers made to women, and 40% of minorities were offered positions compared to the 60% of non-minorities. Based upon the 80% rules, the percentages show a clear sign of discrimination in Symco’s hiring practices.

(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) What argument, if any, could the company make in response to charges of discrimination based on the adverse impact analysis?

 

 

Employment Stage Men Women Minority Non-Minority
Applications Received 200 100 100 200
Applicants Interviewed 160 80 80 160
Applicants Tested 140 40 60 120
Job Offers Made 120 40 40 120

 

 

Employment Stage Men Women Minority Non-Minority Standard Rate Outcome Adverse Impact
Applications Received
Applicants Interviewed 80% 80% 80% 80% 64% 80% > 64% NO
Applicants Tested 70% 40% 60% 60% 56% for Men and Women
&
48 % for Minorities and Non-Minorities
Men & Women (40%< 56%)

&

Minorites &

Non-Minorities (60%>48%)

YES & NO
Job Offers Made 60% 40% 40% 60% 48% 40% < 48% YES

Adverse Impact Exercise -Assignment.