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97) What are the methods an applicant or employee can use to show that an employer's
procedures (such as a selection test) have an adverse impact on a protected group?
Answer: In practice, an applicant or employee can use one of these methods to show that one of
an employer's procedures has an adverse impact on a protected group: 1) disparate rejection rate,
which is a method that compares the rejection rates for a minority group and another group
(usually the remaining nonminority applicants). Federal agencies use a 4/5ths rule to assess
disparate rejection rates. 2) The standard deviation rule, which is a statistical measure of
variability that helps to describe the difference between the numbers of minority candidates who
were expected to be hired and who were actually hired and should be less than two standard
deviations. 3) Restricted policy is a method that demonstrates that the employer's policy
intentionally or unintentionally excluded members of a protected group. 4) Population
comparisons method, which compares the percentage of minority/protected group and white
workers in the organization with the percentage of the corresponding group in the labor market.
Difficulty: Hard
Chapter: 2
Objective: 3
AACSB: Application of Knowledge
Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory
practice allegations, and cite specific discriminatory personnel management practices in
recruitment, selection, promotion, transfer, layoffs, and benefits.
98) How can managers help firms avoid claims of discrimination? What laws are especially
important for managers to understand in order to avoid triggering discrimination claims?
Answer: The human resource manager certainly plays a big role in helping the company avoid
discriminatory practices like these, but at the end of the day, the first-line supervisor usually
triggers the problem. Managers need to understand the questions that can and cannot be asked
when interviewing applicants, and know what constitutes sexual harassment, and how equal
employment opportunity law affects all human resources decisions, including those relating to
appraisal, compensation, promotions, disciplinary procedures, and employee dismissals. First,
managers should understand the Equal Pay Act of 1963, which states it is unlawful to
discriminate in pay on the basis of sex when jobs involve equal work; require equivalent skills,
effort, and responsibility; and are performed under similar working conditions. Managers should
also understand the Age Discrimination in Employment Act of 1967 (ADEA), which made it
unlawful to discriminate against employees or applicants who are between 40 and 65 years of
age. Younger managers may have to especially guard against ageist prejudices and assuming that
younger workers are better qualified than older workers.
Difficulty: Hard
Chapter: 2
Objective: 3
AACSB: Application of Knowledge
Learning Outcome: 2.3 Illustrate two defenses you can use in the event of discriminatory
practice allegations, and cite specific discriminatory personnel management practices in
recruitment, selection, promotion, transfer, layoffs, and benefits.