This study has been originally intended to study the impact of possible discrimination in recruiting and promotional aspects of this company.
As required, the writer has assumed the role of an independent consultant retained by the Board of Directors Of Tanglewood Co. to examine and report on aspects of professed racial bias in the Company and suggest remedies as deemed necessary in the matter.
It is first necessary to provide the data necessary for the study.
Analysis of Selection and Hiring Procedures
This report is based on the above-listed objective study of statistics available on hiring and promotional avenues for whites and non –whites in Tanglewood Company, both in terms of external outsourcing and internal promotional needs.
It needs to be seen in terms of Selection procedures adopted in the hiring of personnel.
In the first place, the External aspects are being considered.
External Recruitment
The collation of statistical evidence shown above points to the fact that even in lower categories, the hiring of non-whites is lower than that of whites. In the case of Stores Assistants, 83% of the hired jobs have gone to whites while non-whites gained around17%, including African Americans gaining just 3.45%
Again, in the case of Shift leaders, the majority 84% of jobs have gone to whites, with non-whites getting around 17%. The figures for African Americans are 1.56% in this category.
Even the higher categories of Department Manager, it is seen that 87% have gone to whites while around 13% has gone to non-whites, with African Americans having just 3.20%.
There is strong evidence of racial impact in the case of senior manager recruitment.
In the category of assistant stores managers, all 16 vacancies have been filled by whites. Even in the case of Stores Managers, 60% of the vacancies have been filled by whites and only 40% filled by nonwhites, with no African American in the list.
Thus, it would not be wrong for this report to state that African Americans have not been well represented in the external recruitment programs.
Internal Promotions
Coming to IP, it is seen that marked proclivity exists in the case of internal promotions also. In the case of Shift Leaders, nearly 84% of whites have been selected for promotions, while only 16% non-whites have been considered, with just 2% representation from African Americans
Again, in the case of Departmental Managers, nearly 87% of promotions have been whites, with 13% non-whites, including 3% African American. Even in the case of senior positions of Assistant Sales Managers (ASM) and Sales Managers (SM), the representation of African Americans has been just 3%.
No African American (AA) has been selected for the position of Sales Manager.
Thus from the statistical records available, it could be said that even in the case of internal recruitments, Non-whites, especially AAs have not been given a fair deal.
It is now necessary to consider the concentration of the workforce of Tanglewood.
Historical Concentration Data.
It is seen from the above that 84% of the total concentration has been White, and only 16% has been nonwhite. There are more whites in senior positions than non-whites in junior positions.
Even in the case of individual positions, the concentration of white has been over 80% of total workforce as seen below:
Position White Non-white African American
- Store Associates 84% 16% 3%
- Shift leader 84% 16% 2%
- Dept. Manager 87% 13% 2%
- Asst Sales Manager 93% 7% 2%
- Store Manager 70 % 30% nil
This study has been primarily required to consider the impact of AA since the petitioner, is an AA who has been continually bypassed for promotional due to racial discrimination.
Although Tanglewood professes non-racial aspects in its recruitment policies, the statistics above speak for itself, and it is seen that AA only forms 3% of the workforce in lower echelons and only 2% in higher management positions which does not augur well in terms of minority representations.
Selection ratios and the 4/5 rule
The Uniform Guidelines in Employee Selection Procedures give a workable method to calculate disparities in hiring rates. The rule states that if the organization’s utilization rate of a minority group is below four-fifths (or 0.80) of the utilization rate for a majority group, the disparate impact may exist. (Case Five: Disparate Impact Analysis, P.5). Source provided by customer) We shall apply the Uniform Guideline to each of these categories and determine the results:
Although Tanglewood Company recognizes racial non-discrimination it is seen that except for the positions of Stores Assistants, Dept. Manager and Assistant Stores manager, all other selection procedures do not reach a benchmark of 80% Utilization Ratio in the case of African American (AA) nationals.
Thus the objective and neutral study conducted based on evidence of statistical data do provide that reasonable tinges of racial impact could be present in this company.
As an independent consultant hired by the Board of Directors of Tanglewood, it is necessary to conclude by saying that there are strong suggestions that the recruitment policies followed by this company, both in terms of external outsourcing and also internal promotions may not be devoid of racial impacts.
Under Section 3 of the Uniform Guidelines of Employee Selection Procedure, it has been emphasizing, among other things that “The use of any selection procedure which has an adverse impact on the hiring, promotion, or other employment or membership opportunities of members of any race, sex, or ethnic group will be considered to be discriminatory and inconsistent with these guidelines.” (Uniform guidelines on employee selection procedures: Section 3: Discrimination defined: Relationship between use of selection procedures and discrimination).
In order to suggest measures to avoid impacts in the future, it is needed that a more transparent and equitable recruiting and staffing procedure is followed. This could be in terms of specially reserving positions for minority communities including AAs, on the basis of internal promotional avenues, and also earmarking a percentage of certain jobs only for AA and other Non-white communities.
Moreover, deserving family members of deceased, or superannuated AAs staff or non-white communities could be provided job opportunities in order to countermeasure racial impacts. Recruitment agencies need to be advised that, other things being equal, greater choice need to be exercised for minority communities
It is also necessary that certain non-litigation agreements through the use of mediators or arbitration need to be conducted to sort out this matter with the aggrieved nonwhite employee, in order to avoid a protracted legal battle in Court. (The US equal employment opportunity commission: Facts about mediation, 2004).
References
Case five: Disparate impact analysis, P.5. (Provided by customer).
Uniform guidelines on employee selection procedures: Section 3: Discrimination defined: Relationship between use of selection procedures and discrimination. Web.
The US equal employment opportunity commission: Facts about mediation. (2004). Avoids litigation. EEOC. Web.