Evaluating Disparate Impact

Assignment 3: Evaluating Disparate Impact
and Employee Selection
Note: There are 4 pages total to refer to for this first assignment. Make sure to read all 4 pages
in this document.
You are employed as an HR consultant for a mid-sized bank. The bank employs 200 tellers
across its branches. You need to recommend to the bank what to consider when hiring for the
position of Bank Teller. At this point you have completed Assignment 2 and you have created
a selection system for the job of a Bank Teller. Now you are moving to Assignment 3 to verify
the selection system works properly.
For this second assignment there are two main tasks you need to complete:
• Assignment 3: Part A Evaluating Disparate Impact Discrimination
• Assignment 3: Part B Reflection on Employee Selection
Both tasks should be included in one document 2 to 5 pages in length, double spaced, use
tables when needed, and use APA format for referencing and citing. Include a cover page and a
reference page.
The following pages describe the rubric that will be used to measure your work and detailed
instructions for completing this assignment.
(Continues for the next 3 pages)
1
Criteria
Grade A
5 points
Grade B
4.25 points
Grade C
3.75 points
Grade D
3.25 points
Grade F0
points
Part A
Evaluating
Disparate
Impact
Discrimination
All answers are
correct with a
thorough
explanation.
All answers are
correct with a
limited explanation.
One or more
answers are
incorrect or
unclear.
Two or more
answers are
incorrect or
unclear.
Completely
missing or
incorrect.
Part B
Reflection on
Employee
Selection Q 1-5
All answers are
correct with a
thorough
explanation.
All answers are
correct with a
limited
explanation.
One or more
answers are
incorrect or
unclear.
Two or more
answers are
incorrect or
unclear.
Completely
missing or
incorrect.
Part B
Reflection on
Employee
Selection Q6
All components of
an employee
selection process
are thoroughly
explained.
All components of
an employee
selection process
are explained, yet
not in detail.
One or
more component
s are missing or
unclear.
Two or
more component
s are missing or
unclear.
Completely
missing or
incorrect.
Writing
Mechanics
Strictly adheres to
standard usage
rules of
mechanics:
Conventions of
written English,
including, but not
limited to
capitalization and
punctuation and
spelling. No errors
found. No jargon
used.
Adheres to standard
usage rules of
mechanics:
Conventions of
written English,
including
capitalization and
punctuation and
spelling. One to
three errors found.
Minimally
adheres to
standard usage
rules of
mechanics:
Conventions of
written English,
including
capitalization
and punctuation
and spelling.
Over three errors
found.
Does not adhere
to standard
usage rules of
mechanics:
Conventions of
written English,
including
capitalization
and punctuation
and spelling.
Over ten errors
found.
Completely
missing or
incorrect.
APA Guidelines
for in-text
citations and
References
The paper
correctly cites intext
and lists at
least three
resources on the
References
page. If
additional sources
are used, they are
included correctly.
The majority of intext
citations and
the reference are
properly cited;
formatting is
inconsistent/inaccur
ate in a few cases.
References are
cited but
incorrectly under
APA style. The
student has
either used
another format
or incorrectly
applied the APA
style guidelines.
Inconsistent or
missing in-text
citations; fails to
attribute an
author’s word
through APA
citations.
Completely
missing or
incorrect.
Overall Score Grade A
22.5 or more
Grade B
20 or more
Grade C
17.5 or more
Grade D
15 or more
Grade F
0 or more
2
Disparate impact discrimination is considered unintentional. This form of discrimination indicates that all applicants
were treated equally; however, this equal treatment had an unequal effect related to a protected characteristic. The most
common approach to identify adverse impact is to apply the four-fifths rule. The fourfifths rule states that adverse impact
exists if the selection ratio of the minority group is less than four-fifths (or 80 percent) of the selection ratio of the majority
group. A selection ratio is the percentage of those hired based on the percentage of those who applied for the job. Selection
ratios must be calculated for each protected group. The selection ratio of the minority group is compared with the selection
ratio of the majority group (often “males” or “Caucasians”). The simplest way to calculate adverse impact is to divide the
selection ratio of the minority group by the selection ratio of the majority group. If the result is less than 80%, then adverse
impact exists.
For example, the bank collected the following data over the past five years:
Males applied = 200 Females applied = 300 Males
hired = 40 Females hired = 45
Based on this information, the selection ratio for men is 20% (40/200), whereas the selection ratio for women is 15%
(45/300). Dividing the minority group (the group with the lower selection ratio, women) by the majority group (in this
case, men) results in an answer of 75% (15%/20%). Since the result is less than 80%, adverse impact exists. The
organization needs to explore the selection process to identify what may be the cause of this disparity. In this part of the
exercise, you will conduct this analysis.
The bank compiled selection data on three racial groups during the past year: Caucasians, African-Americans and Latinos.
The data is as follows:
Number applied Number hired
Caucasians 90 27
African-Americans 50 10
Latinos 40 10
1.
The selection ratios for the three groups are:
Caucasians = _________________________
African-Americans = ___________________
Latinos = ____________________________
2. Does adverse impact exist when you compare the African-American applicant pool with the Caucasian applicant pool?
Show your work.
3. Does adverse impact exist when you compare the Latino applicant pool with the Caucasian applicant pool? Show your
work.
Evaluating the Selection System
You have now created a selection system for the job of a teller.
The final step in a selection system is to make sure the system works properly.
As discussed in the overview, there are two ways to ensure that the system is working. One approach takes a legal
perspective to ensure that organizations do not discriminate in hiring.
There are two types of discrimination: disparate treatment and disparate impact (also known as adverse impact).
Disparate treatment discrimination refers to treating applicants differently based on a protected characteristic (for
example, age, sex, national origin, religion). An example of disparate treatment discrimination is not considering women
for leadership positions. This type of discrimination is considered intentional and therefore easy to identify and correct or
prevent.
Assignment 3: Part A
Evaluating Disparate Impact Discrimination
3
ASSIGNMENT 3: Reflection on Employee Selection
1. You have made a number of decisions in creating, implementing and evaluating a selection system for
bank tellers. Which of these decisions do you think is most critical? Why?
2. An employee selection approach to hiring is more complex than hiring employees based on who they know
or casually scanning a résumé and asking a few “off the cuff” questions for an interview. When you think
about your work experiences, do you think the organizations you worked for took an employee selection
approach when hiring?
3. If you answered yes to question 2, do you think the organization was effective in hiring employees? If
you answered no to question 2, do you think the organization should have adopted a selection approach
to hiring?Explain your response.
4. What do you perceive as the overall advantages and disadvantages of an employee selection approach to hiring?
Assignment 3: Part B
Reflection on Employee Selection
5. Based on this exercise, would you recommend an employee selection process to hiring for virtually
any job? Why or why not?
6. Describe the components of an employee selection process in order to reflect on the fundamental aspects
of employee selection your learned from completing Major Assignments 1, 2 and 3. The answer to
question 6 should be 2-3 pages long in order to be complete and thorough.
4

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