Tanglewood Case Study

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Tanglewood Case 5: Disparate Impact The Uniform Guidelines on Employee Selection Procedures (UGESP) requires that all organizations keep records that allow calculation and comparison of statistics. The UGESP also requires that the four-fifth’s rule be calculated in all organizations. If there is evidence 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” (Code of Federal Regulations, 2011) then this usually is considered to be proof of adverse impact. After applying the four-fifth’s rule, and examining the selection ratios for all job categories, it is determined that the evidence points to disparate impact discrimination. Historical Hiring and Promotion Data: Applicant Flows Occupational category Total White* Total Non-White African- American* Store Associates External hires Applicants 18226 15436 2790 594 Hires 3832 3221 611 135 Selection ratio 21.02% 20.87% 21.90% 22.72% Shift leader External hires Applicants 392 320 72 17 Hires 61 54 7 2 Selection ratio 15.56% 16.88% 9....

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