Scenario Paper Hiring and Promotion, business and finance homework help

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Business Finance

Description

Using Chapter 6 of Recruiting, Interviewing, Selecting & Orienting New Employees (5) by  Diane Arthur, create a 5 page report concerning CapraTeks hiring and promoting practices.  

Scenario

While planning for expansion, CapraTek is also concerned about its hiring and promotion practices at existing facilities. Management has asked for an analysis of the workforce in its flagship manufacturing facility. As a member of the human resources department, you know that CapraTek hires production workers at a semi-skilled level, and after one year in their position, workers are eligible to apply for a six-month training after which they can be promoted to the skilled production worker level. (This promotion comes with a 25 percent pay increase.) In addition, all line supervisors have been promoted from the ranks of the skilled production workers.

Requirements

Using what you know about CapraTek's hiring and promotion practices, prepare a report for top management addressing the following: 

  • Analyze the data for evidence of adverse impact using the 4/5ths rule. Consider the applicant flow.
  • Analyze the data for evidence of adverse impact of employee utilization based on the relevant labor market for the state you chose in Assessment 1.
  • Analyze the data for evidence of adverse impact on any protected class concentrated in lower-paying jobs.
  • Assess CapraTek's hiring and promotion practices to support its growth strategy.
  • Write 4–5 typed, double-spaced pages (not including title page or references).
  • Use Times New Roman font, 12 point.
  • Include a title page and, if needed, a reference page.

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Explanation & Answer

Thank you for working with me.

Running head: ADVERSE IMPACT

1

Adverse Impact: Capra Tek
Author
Institution

ADVERSE IMPACT

2

Introduction
The concept of adverse impact in employment refers to policies that appear to be neutral,
but prove to be neutral on the face value but are discriminatory if analyzed profoundly. Adverse
impact is multifaceted and may therefore occur on different levels of HR policies
implementation. For instance, adverse impact may occur during hiring, promotion, layoffs and
other related areas where hr practices are applicable. Additionally, adverse impact can also be
analyzed at the labor market level to determine if the hr policies of the company are
discriminatory at the market level. At such an instance, it shows that the HR policy of the
organization has an adverse impact in general (Arthur, 2012). It is paramount for an organization
to manage its hr policies by tracking its adverse impact to eliminate the risks that lurk due to
such practices.
The 80% rule or 4/5th Rule and Adverse Impact: Capra Tek
The 4/5ths rule also called the 80% rule is one of the mathematical approach
organizations take to ensure that their hr policies are compliant and that there is no adverse
impact. The 80% rule takes the percentage hires from all groups and matches them against one
another to determine which group of hire is causing an adverse impact on the others (The Basler
Group, 2015). It is, therefore, a crucial tool of minimizing risk when implementing hr practices.
The following is an analysis of Capra Tek on hiring and promotion using the fifth rule to
determine if there is any adverse impact.
Analyze the data for evidence of adverse impact using the 4/5ths rule. Consider the applicant
flow

ADVERSE IMPACT

3

Considering the scenario, Capra Tek has 270 applicants at every instance comprising the
following groups 144 non-minorities and 126 minorities, 168 male and 102 female applicants. 14
among the 144 non-minority were hired. This represents 9.7% hire rate for non-minorities
against 4.8% minorities hire rate. Applying the hire rate on this data and evidence, it is apparent
that the hire rates at Capra Tek do not meet the 4/5 th rule because the minority group’s hires only
comprise 49.5% instead of 80% against the non-minority hires. Consequentially, the nonminority group has an adverse impact against the protected groups at Capra Tek. When
analyzing the data against gender hires, the hire rate for males is 85% of the female hire rate. As
a result, there is no adverse impact because this rate exceeds the 80% rule.
Considering that Capra Tek maintains its hire rates and the number of applicants remain
the same such that. 14 non-minority employees are hired and 6 minority employees are hired.
The number of male hires in this group will be 12 while female hires are 8. After one year of
employment at Capra Tek, all the hires are promoted to skilled workers level. Among these
employees 5 employees from the non-minority group, become supervisors, this represents 35.7%
of the minority hires. On the same note, 2 employees from the minority group become
supervisors, which represent 33% of the minority hires. Using the 80% rule, it is apparent that
the non-minority group has an adverse impact on the minority group because the minority group
promotion rate is 11.8% instead of 80%.
Analyze the data for evidence of adverse impact of employee utilization based on the relevant
labor market for the state you chose in Assessment 1
Assuming that Capra Tek is located within California in an area with 10000 semi skilled
workers, and the company has an applicant flow of 2.67%, with all the other rates remaining the

ADVERSE IMPACT

4

same, it is appropriate to apply the 80% rule on this rate. Taking the non-minority hire rate of
9.7% against the overall labor market hire ...


Anonymous
I was struggling with this subject, and this helped me a ton!

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