Tanglewood Case 5: Disparate Impact Analysis
Tanglewood Case 5: Disparate Impact Analysis
Recruitment and Selection
HRM 450
Current Needs Assessment Tanglewood prides itself on encouragement of diversity in the workplace. All hiring and promotion decisions should be made on the basis of character and quality of work. The ensuing lawsuit brings about a need to analyze Tanglewood’s selection strategies to ensure these practices are not hindering the promotion of diversity. In order to do this, it is necessary to study the flow and concentration statistics of the organization. Flow statistics are calculated by comparing the number of people hired and promoted in the organization with the total number of people that apply. These statistics are then divided into different groups (i.e. race, gender). The selection rates of the different groups are compared to determine if there is a significant difference in selection between the groups. An example of this would be to look at the number of total white applicants and the percentage of those applicants that were hired. Then, look at the total number of African American applicants and the percentage of those applicants that were hired. These two percentages must then be compared. A useful comparison of these percentages would require that the number of African Americans selected equal 80% or the number of white employees hired. This is known as the four-fifth’s rule. The Uniform Guidelines on Employee Selection Procedures (UGESP) requires that all organizations keep records that will allow for calculation and comparison of these statistics. The UGESP also requires that the four-fifth’s rule be calculated in all organizations. If is it shown that “a selection rate for any…group is less than four-fifths (4/5) (or eighty percent) of the rate of for the group with the highest rate” then this will usually be considered to be evidence of adverse impact. Adverse (or disparate) impact occurs when staffing practices have potential discriminatory impact on
Recruitment and Selection
HRM 450
Current Needs Assessment Tanglewood prides itself on encouragement of diversity in the workplace. All hiring and promotion decisions should be made on the basis of character and quality of work. The ensuing lawsuit brings about a need to analyze Tanglewood’s selection strategies to ensure these practices are not hindering the promotion of diversity. In order to do this, it is necessary to study the flow and concentration statistics of the organization. Flow statistics are calculated by comparing the number of people hired and promoted in the organization with the total number of people that apply. These statistics are then divided into different groups (i.e. race, gender). The selection rates of the different groups are compared to determine if there is a significant difference in selection between the groups. An example of this would be to look at the number of total white applicants and the percentage of those applicants that were hired. Then, look at the total number of African American applicants and the percentage of those applicants that were hired. These two percentages must then be compared. A useful comparison of these percentages would require that the number of African Americans selected equal 80% or the number of white employees hired. This is known as the four-fifth’s rule. The Uniform Guidelines on Employee Selection Procedures (UGESP) requires that all organizations keep records that will allow for calculation and comparison of these statistics. The UGESP also requires that the four-fifth’s rule be calculated in all organizations. If is it shown that “a selection rate for any…group is less than four-fifths (4/5) (or eighty percent) of the rate of for the group with the highest rate” then this will usually be considered to be evidence of adverse impact. Adverse (or disparate) impact occurs when staffing practices have potential discriminatory impact on