Human Resource Measurement in Selection Part 1 An Overview of Human Resource Selection CHAPTER Human Resource Measurement in Selection 2

Key Points The basic principles of federal regulation of HR activities An overview of the specific laws and executive orders appropriate to selection The types of evidence used in deciding when discrimination has occurred The types and characteristics of affirmative action programs Major court cases in selection The most important legal issues to consider in developing and implementing a selection program ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

FIGURE 2.1 Regulatory Model of EEO SOURCE: Adapted from James Ledvinka and Vida G. Scarpello, Federal Regulation of Personnel and Human Resources Management, 2d ed. (Boston: PWS Kent Publishing Co. 1991), 18. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TABLE 2.1 Major EEO Laws and Executive Orders Regarding Selection Title VII Civil Rights Act of 1964 Civil Rights Act of 1991 Executive Order No. 11246 Age Discrimination in Employment Act of 1967 The Rehabilitation Act of 1973 Americans with Disabilities Act of 1990 ADA Amendments Act of 2008 Immigration Reform and Control Act of 1986 U.S. Constitution 5th Amendment U.S. Constitution 14th Amendment Civil Rights Act of 1866 Civil Rights Act of 1871 ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

EEO Discrimination Complaint Process Discrimination Charge Equal Employment Opportunity Commission (EEOC) No-Fault Settlement Investigation Probable Cause Statement No Probable Cause Statement Conciliation Litigation Right-to-Sue Notice ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Americans with Disabilities Act of 1990 Definition of Disability A disabled individual has a physical or mental impairment that substantially limits one or more major life activities has a record of such an impairment is regarded as having such an impairment. Excluded groups: Homosexuals and bisexuals; transvestites, transsexuals, pedophiles, exhibitionists, voyeurists, and those with other sexual behavior disorders; compulsive gamblers, kleptomaniacs, pyromaniacs, and those currently using illegal drugs. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Reasonable Accommodation An organization is required to make changes in the work process for an otherwise qualified individual with a disability unless it would pose “undue hardship” Qualified Individuals with a Disability Meet the job-related requirements of a position Can, with or without reasonable accommodation, perform the essential functions of the job “Undue Hardship” Exception Nature and cost of the accommodation Ability of parent employer to bear costs ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Essential Job Functions (Activities) An activity could be considered essential if: The position exists to perform the activity. Only a limited number of other employees are available to perform the activity or among whom the activity can be distributed. The activity is highly specialized, and the person in the position is hired for the special expertise or ability to perform it. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Employment Discrimination Forms of Discrimination Disparate treatment Situations in which different standards are applied to various groups of individuals even though there may not be an explicit statement of intentional prejudice. Disparate impact Organizational selection standards are applied uniformly to all groups of applicants, but the net result of these standards is to produce differences in the selection of various groups. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Disparate Treatment McDonnell Douglas Rule A guideline for establishing a prima facie case The plaintiff must show that the following conditions exist: He or she belongs to a protected class. He or she applied and was qualified for a job for which the company was seeking applicants. Despite these qualifications, he or she was rejected. After this rejection, the position remained open and the employer continued to seek applicants from persons with the complainant’s qualifications ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Disparate Impact Burden-of-Proof Defenses for Employers Business necessity Application is limited to safety of workers and customers Bona fide occupational qualification (BFOQ) Disqualification of a demographic group from employment because no one person from that group could adequately or appropriately perform the job Validity A plausible business reason Demonstrated job-relatedness of selection procedure ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TABLE 2.2 Presentation of Evidence in Title VII Discrimination Cases ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Use of Statistics Stock Statistics Compare the percentages of specific internal and external demographic groups of workers at one point in time. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

FIGURE 2.2 Revised EEO-1 Form SOURCE: Federal Register, November 28, 2005 (70 FR 712 94). ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Use of Statistics (cont’d) Relevant Labor Market (RLM) The percentage of a specific demographic group in an appropriate external comparison group of workers Group component determinants Geographical location Skill level ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TABLE 2.3 Some Relevant Labor Markets Used for Statistical Comparisons General population data Labor force data (civilian, nonfarm, or total) Qualified labor market data Actual applicant flow data Qualified actual applicant flow data Employer’s own workforce composition (promotion cases) Employer’s own qualified and interested workforce composition (promotion cases) ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Use of Statistics (cont’d) Flow Statistics Compare proportions taken from numbers gathered at two different points in time—before and after selection has taken place—to determine how minority members fared in the selection process in comparison to nonminority members. Are used to determine if differences between the proportions is of sufficient significance to constitute evidence of discrimination. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Use of Statistics (cont’d) Flow Statistics (cont’d) Four-fifths rule The ratio of any group must be at least 80 percent of the ratio of the most favorably treated group. Standard deviation rule ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Definition of an Internet Applicant The person must submit an expression of interest in employment The organization is considering employing the individual for a particular position. The individual’s expression of interest indicates that the person possesses the basic qualifications for the position. The individual must not remove herself from consideration for the position. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Uniform Guidelines on Employee Selection (1978) The Guidelines represent the combined viewpoints of several federal agencies: Equal Employment Opportunity Commission (EEOC) Civil Service Commission Department of Labor Department of Justice Are not laws and are not legally binding Are used as references for court decisions ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Uniform Guidelines on Employee Selection (1978) Guidelines address: The determination of adverse (disparate) impact The types of selection methods covered by the Guidelines Defenses for selection programs Selection requirements and outcomes Which job performance measures can be used to demonstrate validity Record keeping requirements ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Affirmative Action Programs (AAP) Affirmation Action Specific actions taken by an organization to actively seek out and remove unintended barriers to fair treatment in order to achieve equal opportunity. Affirmative Action Plan A written document that explicitly states steps to be taken, information to be gathered, and the general baseline for decision making for each area of HRM A guideline for actions to ensure that EEO principles are implemented within the organization. ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Types of Affirmative Action Programs Reasons for Adopting an AAP: The organization is a government contractor AAP is required for firms with $10,000 in federal contracts Office of Federal Contract Compliance (OFCCP) oversees AAP development and administration Court order (losing a court discrimination case) or signing a consent decree legally required to balance internal workforce with the relevant labor market May require preferential treatment to minority groups to achieve goals or quotas within specific timetables Voluntarily attempting to implement EEO principles Avoidance of reverse discrimination is problematic ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Affirmative Action Programs (AAP) (cont’d) Opportunity Enhancement AAPs Focused recruitment or training directed toward target groups Equal Opportunity AAPs Forbid assigning negative weights to members of target groups Tiebreak AAPs Members of target groups are given advantage only in selection situations in which applicants are tied Strong Preferential AAPs Give preference to target group members even if they have inferior qualifications ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TABLE 2.4 Key Issues in Major Selection Court Cases Griggs v. Duke Power (1971) 1. Lack of discriminatory intent not sufficient defense 2. Selection test must be job related if adverse impact results 3. Employer bears burden of proof in face of apparent adverse impact U.S. v. Georgia Power (1973) 1. Validation strategy must comply with EEOC guidelines 2. Validation must include affected groups 3. Validation must reflect selection decision practices 4. Testing must occur under standardized conditions Spurlock v. United Airlines (1972) 1. College degree and experience requirements are shown to be job related 2. Company’s burden of proof diminishes as human risks increase Watson v. Ft. Worth 1. Cases focusing on subjective selection devices, Bank & Trust (1988) such as interviews and judgments, could be heard as disparate impact 2. Organization may need to validate interview in same manner as objective test ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TABLE 2.4 Key Issues in Major Selection Court Cases (cont’d) Rudder v. District 1. Content validity is acceptable defense for adverse of Columbia (1995) impact 2. Job analysis, ensuring adequate representation of minority groups in data collection, is essential 3. Clear links must be shown between job analysis information, test questions, and correct answers 4. Attention to test security and administration are important Ricci v. DeStefano (2009) 1. Adverse impact present as blacks scored lower on tests than whites and Hispanics 2. Discrimination directed toward whites and Hispanics 3. Threat of lawsuit not defense for disregarding job-related selection tests 4. Adverse impact can be defended by job relatedness of selection tests ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TABLE 2.4 Key Issues in Major Selection Court Cases (cont’d) OFCCP v. Ozark Air 1. In disability cases, organization must prove that Lines (1986) individual cannot perform job 2. Reasonable accommodation must be given to disabled individual Gross v. FBL Financial 1. Central question – how much evidence must plaintiff Services (2009) produce in age discrimination claim to force defendant to provide evidence that it did not use age in decision 2. Plaintiff must provide clear evidence that age was “but-for” reason in decision 3. Ruling significantly increases the amount of evidence that plaintiff must provide to obtain judgment that age discrimination occurred ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

EEO Summary Major Legal Concepts Regarding Discrimination Basis of Discrimination Evidence of Discrimination Options of the Organization ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Key Terms and Concepts Discrimination charge Equal Employment Opportunity Commission (EEOC) Office of Federal Contract Compliance (OFCCP) Disability Reasonable accommodation Undue hardship Essential job function Disparate treatment Disparate impact McDonnell Douglas Rule Burden of proof Business necessity Bona fide occupational qualification (BFOQ) Validity Four-Fifths Rule Standard Deviation Rule Stock statistics Relevant labor market (RLM) Flow statistics Internet applicant The Uniform Guidelines on Employee Selection (1978) Affirmative Action Programs (APPs) ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.